THE HON. W J. M. LARNACH AT DUNEDIN.

Temuka Leader, Issue 1456, 19 January 1886, Page 3

THE HON. W J. M. LARNACH AT DUNEDIN.

The Hon. W. J. M. Larnach addressed his constituents at South Dunedin on Saturday evening. At the outset he explained that he merely addressed his constituents as their representative and not as a member of the Cabinet, and therefore the views he gave expression to must not be held binding on his colleagues. He considered last session most unsatisfactory. When the House met, the Government had reason to suppose they had a working majority, but some of these members had very changeable minds, and it was found impossible to rely oa them, and the Government were from time to time placed in a most unenviable and didicult position. After the defeat of their fiscal policy, the Cabinet had unanimously made up their minds to resign, but at the request of 52 members of the House they were induced ts continue in office. For his own part he regretted that the advice of the party was accepted. Notwithstanding the difficulties in the beginning of the session, the Government were enabled to pass some very important measures, such as the Hospital and Charitable Aid Bill, the Land Act, the amendments in the Mines Act, the Mortgage Debentures Act, and several other measures that would certaiely bear fruit in time to come. Their fiscal policy was introduced by the Government not with a view of causing undue taxation on* the community, but for revenue purposes, and also with a view of aiding as much as possible local industries. It bad become apparent to the Government that unless some assistance were given in the direction of aiding local industries, the colony would never arrive at that satisfactory state of prosperity that she had a right to expect. He compared the position of Victoria and New South Wales, and said that he had come to the conclusion that a freetrade policy would not answer in a young country competing with other young countries, and striving to reach the same goal—-to get as much population and increase in prosperity as quickly as possible. What had been our policy for some time past? The policy of the Atkinson Government started in this way ; After they succeeded in replacing the Grey Government they went in for borrowing a million a year and spending a million a year. As a matter of fact they never borrowed within the mark, but in five years under the pretended scheme of a million a year they borrowed seven millions, and they spent something over that during that time. They finished no public works, and the consequence was that at this time ovar a million of money was sunk in railways which had been commenced years ago and were yet unfinished. This expenditure was, of course, unproductive of revenue, and would continue so unless the colony arrived at its position, and was prepared to say, “We will finish the railway works that have been begun, and if we find it necessary to commence new works in the shape of railways which will be reproductive, we will have them finished as quickly as possible." There could be no doubt of this, that directly it was decided that it was necessary for a work to be done it was economy to do it as quickly as possible. It would not do for this colony to be behind its neighbors. Because the colony had incurred a debt to a certain amount it would not do for them to say, *• We will not make it any larger, in order to do other great works. ’ He could not agree with that policy, because ho did not look on the debt which New Zealand had incurred on railways or reproductive works in the samp light that some people did. It was a capitalised orb. We bad always got an asset, and

• it was no debt at all. The colony should not borrow money to make up any deficiency in the revenue, but where they borrowed money on reproductive works it was quite « different thing, and so long as these works were approved of by Parliament and sanctioned by the people, Parliament was -justified in further borrowing for works that would sooner or later become reproductive and that would open up the country. The late Government in their pretended economy, paid away £1,400,000 a year in driblets for political support. In would he understood that he was in favor of such a policy as would take hold of reproductive public works and have them completed, and that he was also in favor of going on with any new lines of railway that the Government and Parliament might consider desirable. There could be no doubt that as the House was at present constituted it would be quite impossible for any Government to pass any business that would be satisfactory, and no good or useful work would be done till it was found convenient for the House to go to the country. The House in its temper last session had docked off half a million of money from the Public Works Estimates, and as a consequence there would be far more distress in the winter months than the colony had yet witnessed. He was not advocating the borrowing of money to carry on any great immigration scheme, because he believe! that if it was decided to construct those railway works which would open up the country, those persons wh® were desirable as colonists would come over. He said they had been asked why they had not resigned in the face of the determined, if irregular, opposition shown them. The reason was [that 52 members had promised them their support, and they determined, in the interest of the party with whom they were allied, to retain office till they could place before the country such measures ns they considered would be desirable in the interests of the colony. Speaking of himself, had he consulted his own interest and feelings, he would have retired long ago, but so long as the party remained together, at any possible inconvenience or loss 10 himself, he would stick to them until an opportunity was afforded the Government of placing their views and policy before the country.. The policy of the Government would be somewhat different to what had been pursed for years past. It would not be of a rash or imprudent nature, and ha hopad that when the time came, and an appeal had to be made to the country, that the people would sot hesitate to say whether they approved or disapproved of it. The policy of the Government might be unpopular in the eyes of a majority of the people, but if so he trusted that they would not be blamed for having the hardiness and boldness to offer something now to the country. So far as he knew the Government would not ask for a dissolution before Parliament met. Looking at the circumstances of the eolony and the fact that a quantity of money was being unnedessarily sent out of it, he had come to the conclusioa that the sooner the Government of the day gave assistance to the nursing of industries that might crop up in the colony, and so keep the money in the colony, the better. As to the East and West Coast Railway, he had been very much opposed to its construction, but having visited the West Coast and seen its wonderful forests of timber, he had come to the conclusion that it would be a very desirable work for the colony to undertake. The timber alone would pay for the cost of the line, apart from the fact that the district would be of immense value as a mineral country. He would be in favor of the colony borrowing one million for the special purpose of advancing money to agriculturists and farmers at five per cent, seeing that the farmer had now when borrowing to contend with a large rate of interest. He had long thought it was a legitimate thing for the State (at any rate by way of experiment) to borrow a million at 4 per cent, with a view of lending it out safely .to farmers at 5 per cent- He would also favor the loaning of a million to the local governing bodies, to be expended on necessary works. He did not know whether hla colleagues would agree with him in such a scheme. It was his own notion, but he thought some such scheme should be adopted, and lie would be prepared to support and promulgate it as much as possible, In conclusion, Mr Larnach summarised what he believed would be in the interest of the future of the colony j Practical financial reform as would bring State expenditure within its revenue, and thereby help to equalise the incidence of taxation ; the lessening of the present ' great cost of the conduct of education, and placing its management directly in the hands of the people, as as to have all classes of colonists treated alike and fairly ; the ptrengtbening and increasing i the powers of local governing bodies and | localising all revenue derived from direct taxation, the systematic and . energetic development of the industrial resources of the colony by assisting industries to grow op; the settling of the people on the lands of the colony, unfettered by a residential clause, but to limit the holdings in area. He had never believed in the residential clause, though perhaps in that he was in a minority. He would favor an energetic, regular, and steady construction of railways through all parts of the colony where required, when sanctioned by Parliament after a careful consideration of the possible future value and prospects for revenue gathering. He would be prepared also to give a hearty support to the cause of decentralisation, so that the people might from time to time be entrusted with more governing powers in their hands; also to entrust the State with power to compel it, where necessary, to take private lands at a valuation wherever the same might be wanted for settlement, and to compel the owners of land where railways went through to bear the cost of fencing, as was the case with main roads, and so relieve the State. He had long thought that it would be very desirable that the State should not only be empowered, but compelled, when called on by a district or borough to purchase at a valuation any large holdings which were desirable for settlement. As to fencing, be thought it was a wrong thing that the State could be called on to fence the railways, and not the owners of the land benefited, seeing that the latter had to do the fencing in case of roads. As he had already stated, he would support a loan of one million (by way of experiment), to be loaned to agriculturists and farmers at 5 per cent, for their relief, and also a similar sum to Counties and

Road Boards. He would be in favor of encouraging manufactories and local industries by legitimate means, and by liberal fosieii g care. More assistance should be givai towards developing, improving, and strengthening tbe mining industry ; for, notwithstanding that some members looked on every penny spent in the direction of mining as woi>e than thrown into the sea, he regarded miners as the most intelligent and deserving class in the colony. He would further support the non-political management of the railways of the colony by a Board for each island, for he was satisfied that were the railways worked as a commercial enterprise, far better results would be obtained than at present. He had referred, so far ns ho was justified, to the future policy of the Government, and as to what in his opinion the politics of the future should be, A vote of thanks to Mr Larnnch for his address, and an expression of continued confidence was unanimously passed.