RETRENCHMENT.

Te Aroha News, Volume VIII, Issue 489, 16 July 1890, Page 4

RETRENCHMENT.

CHAMBER OF COMMERCE DISCUSSION. SOME RECOMMENDATIONS. Auckland, July 11. The question of a reduction in tho public expenditure in this colony was discussed at tho meeting of the Chamber of Commerce yesterday afternoon. Captain Colbeck occupied the chair, There was a very fair attendance. The President said he had seen that the Auckland members had approached Government to urge a reduction in the estimates for public expenditure by £50,000. He bad at once telegraphed to tho members informing them that the Chamber of Commerce was in favour of the movement. He felt sure the Chamber would support him in that step. The Government could, of course, adduce many reasons in favour of expense, but the country must insist on reduction. Mr C. C. McMillan said there could be little doubt that the Chamber would approve the President’s action. A financial question was one of the most important for any Chamber of Commerce. Tho prosent Government had done some good in reducing the expenditure on first coming into office, but,like most Governments, they had lost their early energy. They wanted public opinion aroused, so that no matter who formed the Government, retrenchment and economical administration should bo insisted on. Twelve members really determined on economy could do very much. Meetings have of late been held to pretest against the iniquitous property tax ; bub in spite of all those meetings little has been dene, because the members had not the courage of their opinions. The working man was pub forward as a stalking-horse by political adventurers. What was really wanted was a reduction in the education vote, so that the property tax could be removed. Tho class of men who have done so much harm to this country are the men who cheered to the echo political demagogues, and when depression came went off by cheap boats to (Sydney. Were the property tax removed, the mineral resources of the country would bo developed, our waste lands would bo turned into smiling farms, and our young men would be retained in the country. Every man in the Chamber of Commerce could use his influence, and should use it, to reduce the education vote and tho property tax. People ought to be taught that there is on antagonism between labour and capital, and all should try to prevent the growth of that class of hatred which political demagogues do so much to foster. Ho would move, “That the thanks of the Chamber be accorded to tho Auckland members for their efforts to reduce the public estimates, and that this Chamber urge them to continue their agitation to lessen the expenditure.” Mr E. W. Burton said ho would second the motion, and would submit a few figures to show the need of retrenchment. When the Public Works policy was inaugurated the public debt in New Zealand was £4,000,000. Since then £31,000,000 was borrowed, and public lands wero sold to the value of nearly £10,000,000. Thus tho money spent was about £41,000,000, and for that wo have to show, according to the property tax, property valued at£30,000,000. Thus there is £11,000,000 gone to waste. The last two Governments have added £3,000,000 to the debt, while £IB,OOO has been added to the value of property. Hence the proposed retrenchment muet be effected—there was no room for ..can, tho only word was must. Even a reduction of £50,000 would not bo sufficient. The amount of taxation must bo reduced, for every tax was trenching on and reducing the wages fund of the country. Mr McMillan said that in advocating the reduction of the education vote he did not mean to impair the value of the syßten, but he thought only the rudiment# of eiucation should be taught free. Ib was never meant that rich men’s childran should get free education. Mr Bridgewater said he would be very pleased to support the resolution. The present Ministry promised at first to reduce expenditure; yet the Civil List expenditure was increased, so was the expenditure on tho Colonial Secretary’s office, and on the Department of Justice. It is, he added, useless to talk of reduction of expenditure if we do not first get drastic retrenchment.

Mr W. L. Rees said having been invited as one of tho public, he might be allowed to make a few remarks. Ho thought the expenditure might be reduced, not oniy in tho Education Department. but in others. Secondary education might be abolished entirely. This Chamber would do well nob only bo ask for a general reduction in the estimates, but to point out M'here that reduction might be made. Tm’o years ago Ministers promised to do away with the Native Department. It could easily be abolished and money saved, not only in the government of the country, but to the natives and the public. The business of the Native Department might very well be put into the Colonial Secretary’s office. Then the Public Works Department might now easily be abolished, unless it was intended to raise another loan, as Mae hinted at by some of the Government part)'. Against such a loan tho Chamber of Commerce should earnestly protest. The mercantile mind of the community must be one, and must work on regular lines all over the colony. Merchants must havo a kind of Union and insist on their views being respected by the Government. The retention of these big useless departments meant largo staffs, large salaries, and large concomitant expenses. More than £50,000 might easily be saved and nothing really valuable injured. But the Chamber’s work should not merely be negative. The members should point out means by which the country might be settled, and industries fostered so that there might be an increase of the producing and exporting power of the country. Last year when the Government Biff to amend the property tax was introduced, two clauses passed quite unnoticed. By these clauses all the debenture-holders in England or elsewhere, who held debentures in our large companies and banking institutions, were to be brought under the spell of the property tax. Thinking that the holders of our debt debentures should be put on the same footing as private debenture-holders, Sir Geo. Grey intended to move that the property tax apply to the public bondholders. Had such a motion been carried,the property tax on our own people might have been ewept away. Mr John Abbott suggested a committee to examine into the points where retrenchment might be effected. It was no use for them to trifle with the matter ; they must go to the bottom. Every department should be thoroughly scrutinised. Mr Abbott’s remarks were adorned with much metaphor, and were received with great applause. • Mr Adam Porter said, the Lands Depart menb had been omitted by Mr Rees. He believed it was carried on at a loss of £15,000 or bo per annum. That is, the I land sold did not come up to the amount of -i

expenses. The great expense wa largely due to the expensive _ system of surveys. He believed with Mr Rees that the Native Lands Department should never have had an existence. Ib had never been of any use. The public could not woll see whore the items of expenditure could be reduced, but he believed with a former speaker that the total could be reduced by about £300,000. Captain Colbeck in a few words put the motion, which was carried unanimously. Before the resolution was put, Mr R. J. Duncan suggested that the permanent appropriations in the estimates might be made annual, so that the Government might nob say : “ Oh, you can’t touch that ; it has been appropriated by a special Act. ” Every part of the annual expenditure should be under the control of the members of the House.