The Loan Bill.

Te Aroha News, Volume IV, Issue 162, 24 July 1886, Page 6

The Loan Bill.

The Colonial Treasurer moved tho second reading of the bill in question at the afternoon sitting. He said that the bill was in accordance with what was proposed in the Financial Statement, viz., to raise a loan of £1,500,000 for railway purpose. There was a difference between the proposals it* the Financial and Public Works Statement, It was at first thought that eight hundred thousand pounds would be sufficient to meet all requirements outside of railways, which he would describe as miscellaneous purposes for convenience. "*: was, however, subsequently found that this amount would not meet all the requirements. It was found that one hundred thousand pounds would have to be devoted to charges for land along tbe North Island Trunk Line, which had not been calculated upon, and this would go towards augmenting the funds for the miscellaneous purposes. It was further proposed to purchase out of loan the rails and rolling stock already in the hands of the Department to the extent of between £200,000 and £300,000, and that would go towards meeting the amount required for miscellaneous purposes, together witia the £100,000 already mentioned. The amounts placed against works in the schedule were so fixed that they could uot be diverted, except by absolute repeal. Out of the loan, £63,000 was. put do'-rn for the co3t of loan and contingencies, and for the purposes'previously stated. Ho explained that statements published respecting the original original intentions of Government to raise an enormous loan were entirely false. He never proposed a ten million loan, or, in fact, a larger loan than the present for thia or any other year. What was intended was to map out the works required to be pushed steadily on over a series of years, and to take authority for raising the requisite funds to complete those works, but not to borrow the money in any one year, or more, in fact, theua. £1,500,000. In support of this assertion the Treasurer quoted, correspondence that had passed between the Agent-General and himself. The attacks which had been made at Home upon tba Government consequent up^n these false statements had rendered it desirable to modify the proposals and bring them down in their present form, extending over a period of two years. It was very hard on this colony tbat it should be subjected to damaging statements with regard, to its position and prospects. It should be remembered that duriug the laßt two or three years we could not compare in intensity or severity of depression with what neighbouring colonies ha( l to contend with. The statements about private borrowing were as damaging as fallacious. Private borrowing did not affecfc the colony, but was in the nature of partnerships, and was merely a convenient means of investment by those who had monej to lend. The colony might to some extent' suffer from a rush to Kimberley, if it proved to be a large one, but it would only be a temporary matter, and things would soon adjust themselves, and ultimately New Zealand and the, other colonies would benefit. It was satisfactory to note that, notwithstanding the, groat reduction of staple articles and private losses, the valuation of the property tax was largely on the increase. The triennial property tax valuation, which had. just been. laid on the table of the Houee, showed an increase in the value of borough property amounting to £4,769.000, and of county property amounting to £1,780,000, so thafi within, three years the total increase was. £6,650,000— a tangible proof that the value of property in the colony had increased. The only other point he wished to make was that our railways were essentially not worked for revenue purposes, but for the advantages they gave to the settlors who. use them. He moved the second roading of the Loan Bill.

Mr Bryce resumed the debate at 7.30 to a fair House, which"rapidly filled. Tbe hon. , gentleman commented on the inconsistency of the Government ia introducing a bill re-. marking the North Island Trunk Loan, while at the same time we were taking money from that source for the purchase of* native lands on. the route. If money were taken for this purpose, it might also be used in connection with other objects. . He deprecated the tendency shown to borrow on a large scale. He said that not only did the Colonial Treasurer advocate a large borrowing, policy before the session,, buY recent event's, showed .that he was going ; in for extensive borrowing. He held that in. a limited seme we were paying interest but of borrowed money. He urged the damaging effect of' a sudden stoppage of - borrowing, and the ,possibility ; of. such a con-, tingency was increased' proportionately as) borrowing increased. The effect of thta, stoppage would produce a catastrophe greater than that prophesied by the gloomy, people whom the Colonial Treasurer so> strongly denounced. '^Looking at the Pub-.; lie .Works Statement, he pointed out thafj, it the amount; to be .spent this year jw^re expended from the total sum to be author* , ised;''the&waa..a/-^ liabilities'* were .also" £Btf&,oQo,' independent of £200,000 for the purchase of natiyjelandß«! 'Consequently, when these liabilities- "were' discharged there would not be a sixpence remaining for new public works. He -pie-' dieted V that niext year the Government would have to ask the House to authorise a^

new lean. Wo were, he Baid, spending at Hie rate of fully a million and a half a year, *nd this amount' would be considerably increased by the present works proposals. While he thought it justifiable to .pay the Constabulary force out of the loan In time of trouble, he did not think it light to continue the practice now. The .speaker proceeded to urge the importance ©froad formation in opening up the country, '«nd referred in strong terms, to the practice of constantly, expending sums in improvement of open lines, in the direction of altering the position of railway stations, «nd so on. Mr Bryce went on to refer to the question of native land purchase. He quoted instances of abuses under the system of purchase by commission, and asserted that thie syatem was being revived ' in Taupo and other districts. He thought too much power was left in the iiands of the Native Minister. He was told that agents were getting 2d per Acre out of la 6d an acre on the lands bought, and also 303 per. day towards expenses and qther payments. Much of the land purchased was of a worthless stature. He thought the amount proposed to be borrowed by the Government at present waa far too large, and he did not think all the lines scheduled should be con* fctrueted at present ; but even if they were constructed, he thought the amount to be borrowed could be largely reduced, and considered that the Government ehould devote themselves to the task of making theee reductions. JMr Ballanck followed. He took exception to the action of Mr Bryce in criticising Hie administration of the loan proposals of the Government. He had never listened to a tipeech in which; there was so much distortion, colour, and misrepresentation. He held that there was £1,400,000 available for expenditure this year, and £1,368,780 next year, being £568,000 more than was requisite to cover the whole of the existing liabilities. He denied that interest was paid out of borrowed money in any form, or that the expense of the Constabulary was taken out of the loan. It was true that tihe expenses of the construction of the fortifications was taken from this source. The necessity for the immediate acquirement of land on the route of the North Island Trunk Railway was sufficient justification for what the Government had done in the matter of native land purchase. He defended the Land' Purchase Department from the attacks made upon it by Mr Bryce, and justified the use cf the North Island Trunk Railway loan money for the purchase of lands on the route by the necessity that existed for obtaining the best lands immediately. . Mr J. D. Ormond was the next speaker. He did not question the policy of borrowing in the bill He did not think the amount to be raised was excessive, or that it exceeded the necessity of the colony. He, however, objected to the departure from the new principle of ear-marking, in ao far that so large an amount was left at the disposal of the Government for works not specified. Ha considered the recent Public Works Statement to be a most empty and unstatesmanlike one, and said it had not bsen prepared with a view to the exigencies of the colony. Large sums of money were being devoted to new and branch lines, before old and trunk lines were completed and made reproductive The money allocated for the Otago Central, for instance, would not take the railway to any point where it would become payable. Because the Napier- Wood ville line had been the best paying in the colony in proportion Yo expenditure, it wbb, he Assumed, that line was being pushed on with snail - like pace. In five years 11 miles had been formed. Taking the line to Manawatu Gorge and ending it there would mane it unproductive. The Government had entirely failed in respect to^ their railway administration. In Com mittee, wnon the schedule to the Loan Bill came to be considered, he hoped that the votes would be so allocated that lines should be made to points where they would become reproductive, and in the best way to promote the settlement of the colony. As to roads, he considered the policy of the Government impossible. Unlees the colony was to stand still, roads must be made out of borrowed money. As to railway management and reform, the Government had done nothing beyond taking evidence before a Committee on Mr Vaile's proposals. The Minister of Workß, when he took office, was in favour of Railway Boards, but had taken no steps to give effect to his idea?. He (Mr Ormond) defended the purchase of lands abutting on the main trunk Northern railway, but did not think that the purchases hitherto made were likely to be of great value in providing for settlement. He protested strongly against the proposals totako money from the North Island Trunk Loan and to divert it to speculative land purchasing business. As to immigration, he thought the Government were neglecting their most important duty in not leading the House; Some class should be brought out who would assist us in .bearing our large burdens. In conclusion, he said he was justified in saying that the Public Works Statement was an empty Statement ; that it did not provide for the .many large and valuable subjects to which he had referred ; and that where it did provident provided on lines of a policy different .from those which the Government advocated as being right and proper. Members all knew that what he stated was correct, but the House was completely demoralised, and allowed these things to exist. It was a curse to think that this waa so, and that the Government were responsible for it — .Ministers were absolutely wearingtbeclotheß of the Opposition proposing everything that they had before held up to derision, and carrying out nothing they had pledged •themselves to, inasmuch as the House ■was completely demoralised, and no effective legislation could be conducted in this ! Parliament. They should pass the Representation Act, and end their existence. What would members do next year ? Take the honorarium without doing any good. (Laughter.) He thought they should be annihilated, so that there might be a return to Parliamentary Representative .Government. The only chance was to go to the country so that a House might be returned with clearly defined party line?. Sutter. quoted figures to show the recent rapid growth of our public debt, which was now £31,500,000, paying interest at the rate of £1,546.000 per annum. He -held that while our interest was increasing, our revenue was decreasing. The speaker drew a gloomy picture of the finances of the colony. After the supper adjournment, Mr Duncan took up the running. He said that to complete the Otago Central and Napier--Woodville lines as desired by the member for Napier would cost upwards of two millions. There were no paying points on either line till they were completed. Three millions would be required to carry oufc the proposals of tho member for Napier. Mr W. F. Buckland said we were grossly deceived either this year or last year. Ministers had said, in Auckland that if the people of that place had not sent such a miserable Bet of members, new contracts to the; 'amount of £20,000 on the Helensyille Krio would have. been going on. If contracte could be let then, why should the money not be spent now? Be referred to ™faefc that our imports showed a falling oflrlast year, and jgaid it jfas clear the

Colonial Treasurer had not infused new life into the colony^ The speaker proceeded to follow in the same Strain as that adopted' by. Captain Suttor.:; The failure of, your public works policy/ -was, in his opinion, the result of discontinuing immigration, and our only hope how wa^ the resumption of immigration of respectable farmers^ who : should be ; largely assisted. He.had' v bet n districts bribed to an enormous extent eince he came to 'the House," purchases made out of public money that were useless, and billets filled that were not required. Hundreds of thousands of pounds' had been wasted during the last two years in ÜBeleee expenditure ; His opinion was "that it would be better for the country if they did not assemble at all, and if the country Bent better men to do its bueines?. He was almost inclined . to . accept the American principle of an Executive Government. He predicted that the warning of Belahazzar's feast would be repeated in the case of this House. Mr Moss felt that this debate would be an important event in the history of the colony. He was glad to ccc that so many were awakening to tho positien of fche colony, and were preparing to face the matter. He ' quoted the prices of colonial debentures, in the English money market, showing that our debentures were lower than those of any other colony, and that our credit was not nearly so good. Our public works policy had appeared to him from the beginning ac- being rash, presumptuous, and unsound. . Mr Mitchelson moved the adjournment of the debate, which was carried, and the House adjourned shortly after midnight. Wholesale Measures to Extirpate Bunny. The report of the Joint Committee of the two Houses appointed to inquire into the best means of dealing with the rabbit nuisance, and alse to consider the administration of the Sheep Act, is a lengthy document, and shows that special legislation will be necessary to cope with the bunny evil. Dealing with the rabbit nuisance, the Committee reports having examined eighteen witnesses possessed of much practical experience, besides obtaining information on the mattor from various parts of the colony. From the information thus ob tamed, the Committee are reluctantly forced to the conclusion that although rabbits have in come districts materially diminished in numbers, the colony ia not only suffering a heavy annual loss from the very'great numbers still existing in infested diatriote, but that the area infested is constantly increasing. This annual loss has assumed such proportions that in the Committee's opinion it occupies a position of importance second to none which can engage the attention of the Legislature In addition to the liberal use of phosphorißed grain, followed up by the filling in of rabbit burrows and water runs, the liberation of stoats and weasels, ferrets, cats, etc, the erection of rabbitproof fences is recommended. Another recommendation is that the Rabbit Nuisance Act be so amended that the penalties inflicted for breaches may be reduced where mitigating circumstances are proved, and where the penalty exceeds £10 an appeal is to be allowed. The Committee are of opinion that where ratepayers so petition the administration of the Act should be placed in the hands of trustees elected by themselves, such trustees to have power to levy rates for the erection of protective works for reducing or preventing the spread of rabbits, euoh efforts to raise rates to be subsidised bj the Government, the necessary machinery for formation of such districts to be provided by legislative enactment. The opinion is expressed that the past administration of the Act has been eminently unsatisfactory, and the Committee maintain that a firm, impartial, and judicious administration of the Act is all that is necessary to produce the most satisfactory results. As to Ciown land reserves and commonages, they are of opinion that the natural enemies will hare prove the beat and most economical means of permanently diminishing the nuisance, and they strongly urge that tho Government should, without delay, take steps to provide for a. large and constant supply of sf oats and weasels, and also for the breeding of a large number of ferrets locally, by contract. Wellington, June 22. Tarawera Belief Fund. There is a sum of between £13,000 and £14,000 at the credit of the Kaitangata Relief Fund, and in asking whether the Government would consider the expediency of providing, by legislative enactment during the present sesssion, for tho application of a portion thereof towards relieving the distress caused by the recent volcanic eruption, Mr Dargaville aaid that the amount had been contiibuted from various parts of the colony at the time of the Kaitangata Colliery accident some years ago. He waa creditably informed that every legitimate claim on that fund had been fully satisfied, and the interest now derivable from the principal amount was more than sufficient to meet the claims still existing for alimony. It was a fact that, with interest, the fund was increasing, while the legitimate demands were diminishing. The Premier said he did not ccc bis way to provide the legislative enactment asked for, and thought that such legislation, if desirable, should be initiated by a private member with the consent of the trubteea. The existing law allowed a fund to be diverted if suoh was deemed to be desirable. A conversazione in aid of the Tarawara ' Relief Fund, is to be held in Parliament House on the evening of Saturday week, but it ia unlikely that similar entertainments or balls will be held in the building iv future. Yesterday afternoon the Hon. Mr Larnach aeked the Speaker for permission to use the building on the 31st inst ,and Sir Maurice O'Rorke said that he had no doubt that the House would readily grant its sanction., seeing the laudable object for which it was required. Mr Lake said he regretted that the hon. members could not see their way to raise funds in a more dignified manner, and expressed the opinion that by u&ing Parliament House for the purpose they were degrading the cause they had most at heart. Mr Macandreweaid that after theopinions he had given expression to privately, it would be cowardly on his part were he to refrain from stating publicly his conviction that it was exceedingly improper that the building should be used for the pur : pose proposed. But, seeing the object in view, and the source from which it emanated, ho conceived that ifc would be ungracious to oppose it Several hon. members having spoken in a similar etrain, the motion ''for granting ' thb use of. the building was agreed to, , :_[ P ';.' -■',',,': Another ineffectual <has i been made by- Sir - George> Qrigyii to =; ascertain on :the ?of t^hjeit-^hohv memberi'^r; ;: l^ah|'<^lee,®#;r^i^^' wae appointed -a Justice ;^t>;tti!enP^ace^|He :

asked yesterday i,the^ Government : would allow ' jtnein bera -of the House to ; inspect the papers at the public offices dealing with the appointments of justices made, and in so doing "asserted that the Minister for Justice last year had granted a similar f)oriaiyi6rito^anh6n. rnembf-r, Mr M cArthur thereupon roae, and paid that last eWsion the ; Premier had distinctly stated that every Justice of the Peace had been appointed on the recommendation of a member of the- House, and, further, that any lion, member could see the list of recommendations. Unless the Government were ashamed of the appointments made, he saw no reason for withholding the names of those' making recommendations. Beth the Premier and Minister of Justice denied any recollection of making the statemont that records of appointments could be searched;and distinctly stated their unwillingness to allow any disclosure of namea of persons upon whose recommendation Justices have been appointed, \ Reduction of Members. Mr John McKenzie is whipping for his motion for reducing the number of members to seventy-one, and is, meeting with considerable encouragement. He hopes to be in a position to carry his proposal. Abolition of Juries. Mr Guinness disapproves of the jury system, ard intends asking whether the Government will bring in a bill for their abolition Volunteer Medals. Volunteers will be pleased to learn that specimens of long-servico medals have been sent in to the Defence Department, and that the regulations are prepared under which the medals would be presented in a short titne. Disqualification Act. A bill to amend the Disqualification Act has been introduced by Mr J. C. Buckland, with a view to preventing any member of the House receiving money from appointments conferred by Government or any Executive officers. This would of course apply to- members of land boards. The bill will be printed, but, beyond being circulated, it will not bo proceeded with this session. Mr Hobbs on the Religious Faith of Parliament. The member for the Bay of Islands (Mr Hobbs) has evidently not a ve*-y high opiuion of the religious status of members of our Parliament. While officiating as chairman at the Free Methodiet Church last night (says tho " Press ") he begged his audience to pray earnestly for members of Parliament, as they sadly needed praying for. He felt at times like a fish out of water amongst them, and would not have been there unless he realised it was the will of the Lord. He urged them to elect Christian and not Godless men if they wanted good and pure laws. He concluded by entreating them to pray more* earnestly for members of Parliament. The "Pre?s" also describos how Mr Hobbs, while going to this tea fight, mistook the building, and found his way to a social tea given by the Church of Christ, sat down between two ladies, and had his tea before he found out his mistake, and then went on his way rejoicing.