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Thames Guardian and Mining Record, Volume I, Issue 15, 24 October 1871, Page 3

Tho same mode of reference to arbitration is retained, Avitli regard to all restorations and reconstructions. Why the Avhole proposals, or contracts, teem with advantages in favor of the contractors, Avhile in every single instanco the poAver of the Parliament and the Government is carefully restricted or excluded altogether. It is true that in these contracts there is a provision that the contractors are to keep each raihvay in repair for tAvelve months—at first sight a very proper position ; but how do avc find that the contractors have hedged in that provision? We find that, although the contractors appear to be required to maintain the railways at their OAvn cost for twelve months after completion, they are exempted from so maintaining them if any damage shall have arisen from storms, floods, insufficiency of design, war, or disturbance in the Colony. Noav, I Avould ask this House, who is supposed to be responsible for insufficiency of design ? Who but those avlio have the preparation of the plans and the construction of the Avorks can be said to be responsible for insufficiency of design ? And yet, having deliberately planned a bridge that will not last—having deliberately constructed works Avitli a view to their being but of a temporary character—they are then to be entitled to add the cost of the repairs and restoration of those Avorks to the original cost, Avith an additional 5 per cent, added for the contractors’ profits, and tho additional cost is to come under the guarantee of per cent, interest on the original cost, which the Colony is to guarantee to the contractors in the event of the receipts not coming up to that amount. Sir, that is the general character of the proposals, in respect of which this House is invited to show forbearance and afford encouragement toAvards the contractors. By these contracts all competition Avliatever is shut out: by these contracts we arc introducing a foreign poAver into the country which Avouhl destroy us. It has been in old days a very avcll known saying, that there Avas a “ poAver behind the throne greater than the throne.” I say the poAver Avhich the honorable gentleman proposes to introduce into Neiv Zealand, especially Avith reference to No. 1 contract, Avould be greater than the Government and the Legislature together, and that the only one thing in Avhich that power Avas deficient Avas this, that having kindly consented to relieA'e us of our money and our land, it fell short in not relieving us of the charge of the goA'ernment of the country. The Minister of Public Works has said that last session the guarantee system was the one most favoured by the Legislature. lamat a loss to know from Avhat source he derived that opinion. Upon reference to tho Avorks authorized by the Legislature last year, considerable portions of which haA’e been proceeded with since the session closed, it Avill bo found that one-half of them Avere to be paid for by cash ; and when the honorable gentlemen tell us that the Legislature favoured the guarantee principle last year, Avliy, Sir, what Avas the condition of the Legislature last year ?—What Avas the condition oftheHouse?—almostblindlyfollowingall that was dictated to it bythe Colonial Treasurer from those benches. It had no real power of determining what system should be adopted. In so far as the House is concerned, it indicated no decided opinion in favour of the guarantee system. It is quite true that it authorized three railway lines to be constructed under that system ; but, on the other hand, it authorized three other lines of raihvry to be constructed on the proper principle of cash payments. Since last session, I have thought very largely—as, I have no doubt, have many people in the country—on the character of the policy propounded in that session ; and I am bound to say that the result of my reflections has been great alarm as to the shape and character Avhich that policy was likely' to assume. The honorable gentleman likened the GoA'ernment to a reformed spendthrift. The country also might be likened to a reformed spendthrift. It Avas no doubt, for a certain time very much dazzled by the gigantic proposals of the honorable gentleman; but I can tell the honorable gentleman that the country is now awaking more or less from the effect of the allurements Avhich had beguiled it, and that a considerable reaction is noAV setting in ; and Avhat Avas once a feeling of doubt is now rapidly assuming that of fear, Avhich is fast wrapping itself round the whole policy of the Government. The price to be paid for it, and other liabilities which it entails, have been largely' discussed during the recess, as has been the principle of the guaranlee system. lam not going to say that there are not circumstances which Avould occasionally Avarrant it. I believe that there might be railways and other public Avorks of so certainly reproductive a character, so certain to pay not only current expense, but the interest and charges upon the cost of const ruction, that they might be properly' undertaken under that system, if th- re avcic any necessity' for it. But then these are just the cases in Avhich there can be no necessity' for it. Where a Avork is so eminently reproductive and lucrative as to be likely to be a means of national gain, and to return an income above the expenditure entailed by it, a guarantee should not be given. And Avbcro that is not the case, and Avliere the Avork Avill not reproduce the interest on the cost of its construction, then a more ruinous system could not be established than the guarantee system. (To be continued.)