House of Representatives.

Thames Guardian and Mining Record, Volume I, Issue 13, 21 October 1871, Page 3

House of Representatives.

MR STAFFORD’S SPEECH. WAYS ANB MEANS. Mr Stafford.— Sir, I propose to avail myself of the opportunity afforded by this motion to make some observations upon the proposals of the Government during the present session. These proposals have been submitted to the House in a variety of ways by the budget speech of the lion, the Colonial Treasurer, by the statement made by the hon. the Minister of Public Works, and subsequently by tho explanation given last Friday by the Colonial Treasurer, in reference to the principles of four Bills materially altering tho constitution of the Government of the country as it at present exists, and affecting the general finances of the colony, and, sir, I think this is a fitting opportunity to state, in the most, distinct terms, that these proposals—l refer especially to the financial proposals—are eminently unsatisfactory to those who are acting in concert with myself. We view these proposals with very great alarm, not only those proposals which relate to the expenditure vnd the revenue of the present year, but still more those financial proposals which affect the future, uot only during the period of the duration of this Parliament, but of subsequent Parliaments; which we believe* will be very largely curtailed in the exercise of the legitimate powers which they ought to exercise in reference to the revenues and expenditure of New Zealand. Sir, we are brought face to face with this state of things. We have had for some time a very large excess of expenditure over revenue with reference to the purely ordinary services of the Government, and we feel from the proposals, and from the opinions stated from the Treasury benches, that a state of things which is a bad, and shonld be an abnormal state—one that as soon as possible should be put an end to—is viewed by the Government almost as a matter of indifference, and as a fit and proper state of finances for the country.

The Hon. the Colonial treasurer, in his

budget speech, made use of a figure of speech—which by the way I do not notice in the published report of that speech. He likened himself to a spendthrift in a three-volume novel, who, in the earlier volumes, was looked npon as a reckless dissipated character, but who, having sown his wild oats, became a most respect-

able and commendable member of society,

Well, in accordance with the idea suggested, we were induced to believe that upon an examination of the financial pioposals

of the Government, we would find that the spendthrift had turned his back upon his previous errors, and that for the future he would lead a better life. But instead of

that, this House has hcen invited this session, to increase the expenditure regardless of the state of the revenue, and out of proportion to the income of the country, at a rate and in a manner the House has never been previously invited to sanction. Ido not wish to assert this

unsupported by a reference to the exact state of the burdens of the Colony—the

growing increase of those burdens as contrasted with the great diminution in the means of the country to sustain them. I propose shortly to present to this House a few figures, which I think will be conclusive, both to the House and to the country, that we are systematically and persistently living beyond our means in the most reckless manner, and making no provision for the future. Sir, I find that on the 30th June, 1869, the unfunded debt of the country, which may be taken as representing the excess of ordinary expenditure for departmental services not provided for by the ordinary revenue of the year, amounted to £216,650, including the sum of £28,000 which had been advanced to meet certain contingent liabilities upon the confiscated lands, and which it was proposed to charge specially upon the receipts from those lands. To that sum has to be added what has been termed by the Colonial Treasurer a deficiency bill of £60,000, but which is, I believe, in reality an overdaft at the bank for which no bills

have been issued ; making the total unfunded debt of New Zealand, on 30th June, 1869, amount to £276,650. Well, Sir, hon. members on this side of the House

have been frequently censured by the Government during the present session for evpressing the opinion that we were living beyond our means, and that we were absolutely obliged to borrow money to pay the interest on our loans. Now, what do we find has occurred during the interval of two years, from the 30th June, 1860, to the 30th June, 1871, the end of the last financial year? We find that the Unfunded debt of the country has increased to L 520,000, in treasury bills now afloat, to which is tobe added the L5C,000 received, to use a mild expression, from the Trust Funds and Sinking Fnnds, which is not yet provided for; and to cover a further'large deficit between the revenue and expenditure, on the 30th June last, it is proposed to have a further issue of LOO, OOO treasury bills this year; thus making the total unfunded debt of the colony amount to L 660,000. That is to say, in two years money has been borrowed for purely departmental purpose, to supplement the ordinary revenue of the country, to the amount of L 383,350, Besides this, we have to consider that during the last year a very expensive department, which has hitherto been charged upon ordinary revenue—l mean the Defence Department —is now provided for by a loan, a still further indication that we are largely exceeding our income. It is now further proposed to proceed in the same direction, by borrowing LIOO,OOO, to divide amongst the Road Boards, a charge which was also previously borne upon the ordinary revenue of the country. I have shown, Sir. what the increase of the unfunded debt has been, which fairly represents the amount required to be borrowed to supplement the ordinary revenue, in order to meet the existing rate of expenditure, outside altogether of that very large expenditure which is proposed to be authorised under the Publir Works and Immigration policy of the Government. I find that the whole increase of the debts of New Zealand, as between the 30th June, 1869, and the 30th June, 1871. general and provincial, funded and unfunded, is represented by these figures:—on the 30th June, 1869, £7,210,716—0n the 30th June of this year, £8,769,041, to which is to be added the liabilities which have occurred up te the 30th June last, under rhe Annuities Act, amounting to £205,374 ; in other words the debts of the country on the 30th June last, funded and unfunded, were in v round numbers, very nearly nine millions of money, representing or requiring an annual charge of £542,998, or about £2 2s 6d a head for every man woman and child in New Zealand. But if we refer to the census recently taken to ascertain, amongst the population of 250,000 souls, who are the real bread winners of the country, upon whose shoulders this burden will have almost altogether to be borne, we find that they represent 89,032 male adults, who will have (To be continued.)