PREMIER'S POLICY SPEECH

Taranaki Daily News, Volume LII, Issue 82, 3 May 1909, Page 3

PREMIER'S POLICY SPEECH

YKAR'S OI'KRATIONS REVIEWED. A BUOYANT REVENUE. ! SUKPLi:S OK C 184,321. IMPORTANT LEGISLATION FOR 12- * SHADOW ED. iy Telegraph.—i'reas Association. Invereargill, .Sunday. The Prime Minister delivered an important policy speech in the Municipal Theatre on Saturday night to an audience of about a thousand people. Sir Joseph spoke for an hour and three ijuarters. He opened his remarks by deprecating the Opposition statement that the expenditure for the March quarter of the present year was certain to have exceeded that oi the corresponding quarter of the pfevious year. As a matter of fact, the expenditure in the quarter just ended was nearly .£4OOO less than in the March quarter last year. Speaking of FINANCE, he declared that notwithstanding the tightness that has existed in the money market'of New Zealand for some time, the finances were exceedingly satisfactory. An erroneous impression existed as to the period in which the Minister of Finance was able to disclose the results after the end of the financial year. The law requited th« books to be kept open until 31st March, so that at least three weeks must elapse before all returns were to band, and the final re-1 suits ascertained. What had been ad-! versely called his optimistic views had been justified by results. THE YEAR'S OPERATIONS.

For the financial year just ended he bad estimated the revenue'at £8,985,000, and the expenditure at £8,878,340, and after bringing forward 1 the previous year's balance of £767,849, and transferring £BOO,OOO out of revenue to the Public Works Account, he had estimated the surplus at £74,503. He was therefore not unnaturally gratified to say now that the analysis of the figures showed the year's surplus to be £184,321; that was £109,118 more than the Budget estimate. The revenue for the year amounted to more than nine millions, an increase of £16,185 over the estimate. The revenue for the year exceeded the expenditure by £215,672. To this railways contributed £2,918,507, an increase on the previous year of £153,112, in spite of the reduction in fares and freight to the extent of £950,00 (sic); stamps brought in £1,591,358, an increase of £40,394; land and income tax returns reached £926,000, an increase of £83,194; miscellaneous reVenue £264,210, an increase of £45,868; and registration and other fees ako showed an increase. Customs did' not "Mmc up to the estimate by £148,752, owing to the unexpected falling-off in import values for 1909 as compared with the steady increase for some years previously, and owing to excessive importations in 1908 in anticipation of the extended preferential tariir which took effect on 31st March of that year. There was a falling-off in beer duty of £786, and a drop in territorial revenue of £13,133. The revenue, as a matter of policy, lias been largely reduced during the last few years by remission of Customs duties, r ailway concessions, abolition of sheep tax, an 3 a transfer of large areas of Crown lands and national endowments.. Notwithstanding all this, the revenue for the year just closed was £600,000 better than for the previous year. *A satisfactory feature of the year's transactions was that £BOO,OOO was transferred from ordinary revenue and paid into the Public Works Fund, otherwise the balance iwould have been £984,320. He drew attention to the amount obtained for requirements authorised by law during the past rear. These included renewals, public works, and Manawatu railway, loans to local bodies, and advance*""to settlers, a total of £7,797,257, all of which had been provided for, and showed the financial stability of the country. The Minister mentioned incidentally that the Secretary of Customs had that day wired tlut there was an increase of £9600 in Customs duties for the month of April, and stated that there was a much better feeling among commercial men as to the prospects and conditions of trade. Speaking of Opposition criticism with regard to the post and telegraph business, he declared that the Government did not View. with any disquietude the ebb and x flow of SAVINGS BANK

business, which were regarded as natural sequence of fluctuations in the money markets. Deposits amounting to £25,000 were last year loaned to public bodies, so that, in addition to the whole of the security of the country, there was the fating security of the local bodies who borrowed the money. With regard to the agitation regarding the v

MORTGAGE TAX, which was alleged to be driving money I out of the country, he said that during . - the year investments under mortgage had increased by £1,664,393, which"dW not look as if money were being driven out of Xew Zealand. This tax prevented people evading the land tax b.v mortgaging their land to possibly a man of straw. It was absolute nonsense to sav that the Government was responsible for the tightness of the MOXEY MARKET. The fall in wool made a difference of over £'5,000,000 to men who had drawn money on their -.wool clips. It was also caused by the fall in flax, and by the locking up of money in land. He thought, however, there was not the banking convenience in New Zealand to enable people to deal with temporary financial embarrassment, &nd he thought HUt £■ {* MORE BANKS should be allowed to cohie into the country to cope with the expansion of business. He thought also that the operations Of the Advances to Settlers Department'might be extended with advantage. Speaking of a paper currency, ' he said that to adopt a system of paper currency would be fatal, unless there was behind it an equivalent in gold. There was room, possibly, for banking reform, hut the matter must be approached without precipitancy on account of the immense interests involved. Speaking of 1 DEFENCE, the Premier said it was a great mistake to suppose that nothing had been done in the direction of improving the internal defence of the country, but the matter was one requiring to be gone into carefully. Many of those who urged '■ compulsory military training did not realise what it mould cost io oot tlie bill. It would be necessary first to find out the maximum requirements, and, second, to make arrangements to pay for them. During the last year there, had been a record number of men in the volunteer system, and the proportion was greater than it was in any country in the world. He spoke in detail of what had been done during ttie past two years to assist the work ot the volunteer forces, and he maintained that the whole thing was not drifting as had been asserted. During the next session of Parliament, measures would be introduced to further improve the system. With regard to the RAILWAYS.

there was no other country In the world where railway travelling was cheaper than in New Zealand. The total amount of reductions in pursuance of the policy to use the railways as an adjunct to settlement was €2,70»,0«f1. In the next few days there would be .introduced an arrangement whereby people travelling from one point of the country to another would be enabled to obtain their railway tickets at the offices of the TS.S. Co. Speaking of LAND SETTLEMENT.

Ik- Hill that the total nrnnber of selcctofs under the National Endowment to March was 1583, and the total area was 5,709.641 acres. The total territorial revenue for the year was £690,12(1, or some £82,000 over the total estimate. The predictions or the opponents of National Endowment as to revenue had been totally refuted in a most praftiwl way. With regard to native lands, the Department had since 21st pctoher, 1000, rendered available for settlement 1,690,047 acres of native land, and at the present time the Boards had in hand surveys of over 10,000 (sie) acres, a large proportion of which is expected to be put on the market almost immediately. The enormous difficulty of acquiring native lands for settlement by white men -was referred to at length. In the reorganisation of thn PUBLIC SERVICE,

the 6oyerament was aifciions to inakc tilings as easy as possible for those unfortunate enough to come under the retrenchment pregosal. None of those affected would be turned out during the winter, or in case where retirement was necessary, they would he compensated for a period to cover it. With regard tolls _ GOVERNMENT POLICY, the aim this session would lie to iiitro- ' duce legislation remarkable more fov quality than auantitv. In the matter of the National Annuities Bill, self-help s; must precede State-help. The principles & of tlie Lands for Settlement Finance Bill ionic li>

iti-ilppoimi-il l>y constant failure in the ■ballot, and ll»>si' '»' ho could not, |i«vchase singly. It was nut intended to re- ' tin* l.aiul[s /or Settlement Act, but 10 act in conjunction with it. In I Ik: hist fwv vears, there Had been a tendency to drift to the towns, and it was the duty oi everyone to encourage .people to go Oil tile himL As to Hie National Annuities Hill, oae of tile feai'r, haunting the low-waged worker was a poverty-stricken old age. t'nder t!iproposed Bill, a man could make provision fur bis old age. anil fur his \vilV and children, by making a small contribution per week to the fund. Benefits would be given to parents supporting children. It was not charity, but it was a combination of individual and State effort that was financially sound. An important amendment ..of the Succession Duties Act was contemplated, by which duties would be imposed on tliorip estates which were i:i the l>est position to afford it. Prison reform was advocated on lines already made familiar by the .Minister for Justice. There would also be considerable reforms in the bankruptcy laws. It was under contemplation the bringing back to the country of all alKconding debtors. Probably a Bill would be introduced improving the Patents Act, with a view to the representation of false trade descriptions. Important amendments of the Friendly Societies Act, Hospitable and Charitable Aid Institutions, Education, Workers' Compensation for Accident, and Municipal Corporation and other Acts would also be introduced. The action of the Government in offering to the British authorities a gift of a DREADNOUGHT from the Dominion had aroused wide and intense expressions of approval. Though a small section professed disappointment, the English Socialists' leader, Mr. Blatchford, had declared strongly for increasing the naval strength, showing that the man on the spot rcoognised the calamity to the workers unless the British Navy was made impregnable. The Premier drew a graphic picture of the consequences of war with the .possible result of Now Zealand passing to a foreign country as an indemnity. When anyone is talking of the cost of a Dreadnought or two Dreadnoughts, he said, does he for ft moment (suppose, looking at it from a mercenary point of view, that it would equal the 'cost of vfliat the penalty would be to us? Our very existence depends upon the strength, power and mightiness of the British Empire, and the talk of joining hands with Australia in the matter of a local navy is next to futile. The constitutional aspect of the matter would be duly laid before Parliament. To have asked individual members to commit themselves would have been most unfair. The Executive took the responsibility and would risk the subsequent ratification. He had confidence in the people and Parliament in their local and practical support to the Old Land by rising above party and standing at all cost to the mother that had given us protection 'for the last 70 years for an infinitely sniftli amount of annual subsidy.

The Premier's eloquent peroration was received with tremendous applause. After the concluding remarks-of an address that wag frequently interrupted by outbursts of applause, a vote of thanks and confidence in the Government was carried with unanimous enthusiasm.