PARLIAMENTARY.

Thames Star, Volume X, Issue 3403, 18 November 1879, Page 2

PARLIAMENTARY.

[Special Wihe to " Star."] (Peb Pbkss Association.) HOUSE OP REPRESENTATIVES. Wellington, Last night. The House met nt 7 30. After a few unimportant questions had been asked and answered, a measngc from Mis Excellency was read asking for Supply to tiie 30th June, for salaries and continuciieies. Mujor Atkinson said he proposed to go into Committee of Supply next day, but as the message had been received he would take it now. Sir Geo. Grey a.«ked if the hon. gentlemen would go into Committee next day or at nn early date. lie wanted the assurance in order that he need net more anything he intended to more that evening. Major Atkinson said he would give the assurance.

Mr Macandrew asked for a statement shewing the conirncls entered into, the amount of tenders outstanding. &c, in reference to a statement made by the Colonial Trensurer that upwards of tiro millions of the now loan had been fore* stalled. Major Atkinson promised that the return should be furnished during the next few days. An Imprest Supply of £200,000 was then passed through its stages, and the Hon. the Colonial Treasurer proceeded to deliver his FINANCIAL STATEMENT.

Mr Speaker,—The. difficulties and dangers of the position into which we haTe permitted our finance to drift are admittedly so great, and the time at the disposal of the Government has been so short and so broken, that I feel confident I :>hall have the sympathy of hon. members when I ask the Committee for as favourable a consideration of the proposa's I am about to submit ai may be found compatible with careful criticism, and a full discussion of their merits. Sir. I think that all those who hare given any real th ught to th<? question of our present financial condition must have come to the conclusion that it will be impossible to surmount our monetary difficulties and escape the dangers of our position without something like a complete remodelling of our finances, both general and local, without careful administration by Ministers, and without the exercise of much thrift and self-denial on the part of all classes of the community. The period of the session at which we have now arrived renders it impossible to properly consider the whole question of our finance this year; my unfitness for the responsible position I have the honor to hold would be at once manifest, if I were to pretend to be capable in the short time I have been in office, of maturing and submitting in detail so complete a financial policy as the Government believe to be practicable and necessary. I shall* however, sir; endeavor to indicate clearly the general scope and direction of that policy, and to give what I hope the committee will cohlider sufficiently full details of Buchparts of it as we think it is possible to deal with this session. But first, it will be necessary that I should recall to the mind of the committee our present financial position—a position, sir, I venture to say unp^ralcllled in the history of the colony; for with abundant natural resources, with excellent credit, and with an increasing ordinary revenue notwithstanding the great commercial depression, we find ourselves reduced to s?uch a position as to cause the gravest anxiety to all ' true friends of the colony, and to necessitate important measures of financial reform, involving large additional taxation. The Treasurer then stated the position I of the Consolidated Fund, nod then went on to the ESTIMATED EXPENDITURE AND INCOME OF THE YE4B 1879 80 BEVISED.

Siiy—Since I last addressed you upon this subject, the Government have gone carefully through the estimates of expenditure as left by our predecessors. These were .necessarily imperfect, no provision having been made for seTer»l necosiary services, aud the estimates as-now presented show an inereasa of £39,044, the total amount being £4,013,078, jnatesjd of £3,974,034-; the total of these estimates is larger by £6117 than the actual expenditiiro of the prcyiout 3'oar, but it must Ik- remembered that they include provisions for interest on the new loan, and deficiency also to tho extent of £118.000. as well as the expenses attending the second mealing of Parliament within the year. We hope, moreover, by careful administration, to be abji>, after further experience, to effect considerable reductions, but upon this point it is impossible to do more than promise that we will use pur best endeavors to confirm the expenditure within the narrowest limits consistent with efficiency in the public service. We shall also, during the recess, carefully examine jnto the present organisation of the Civil Serritjf, and see how far, by the combination of necessary offices and the .abolition' ~of unnecessary ones tho. expediture can be further reduced pex£ your. Competent and well-paid officers arp absolutely essential to good Government, whilo a large staff of underpaid civil servants is not only costly, but is in its very naturo fatal to efficient; administration. The estimates of reyenue have also been carefully reconsidered, but the jffith advantage of four months' actual collections to guide me I am unable, I regret to say, to 1 increase the amount estimated. The problem therefore for solution is how js this large eslimated deficit, amounting, after correc«

tion, to £951,002, to b..- provided for this year, and what action must bo taken to equate our income and expenditure in future, for although it is somewhat unusual, I nm compelled by our peculiar eircumstancos to.look bcjrond the present year, and in some measure to take counsel for the next. After examining tho nature of the returns for tho three yearn, Major Atkinson proeeedo.l:—lt may, then, I think, bo> fairly stated that our rectipts from taxation are steadily increasing, as "also our receipts from services rendered, ' and that the slight check which the revenue derivable from these sources has met with during the current year is temporary only, and is fully accounted for by tho general depression of trado throughout the world. This fact, I submit, gives us confidence in the future as showing indisputably that our population is hard working and prosperous. It will bo seen that I lie land sales last year only reached £737,691, having fallen short of the estimate by £381,304, and that this year they are estimated to produce only £218,000. Hero then we find the cause of our deficit. 1: the falling off in the Crown lands salon. If last year they had reached tho estimate, and could be relied upon this year to yield £1,150,000 (this amount being about the average receipts of tho last two proceeding years) wo should this year have a small surplus instead of an estimated deficit of £951,002. In other wo/ds, under our present system we require from land sales exclusive of the cost of survey and administration, something like £909,000 per annum in aid of ordinary revenue. It may be, I think, fairly anticipated that with the return of prosperity the annual sales will again bo in excels of the i estimates for the current year.

PUBLIC DEBT. Our public debt on the 30th Jane last amounted to £23,222,311, treating the guaranteed debentures as practically issued, and including Treasury bills outstandiug, of which £442,000 will mature on lit March next in London, and will have to.be reissued. The annual charge for interest and sinking fund in respect of this debt was £1,232,119; . since then we "have issued deficiency bills to the amount of £600.000, and when the loan of £5,000,000 is raised, our total gross debt will auvmnt to £28,822.311, or deducting the accumulated sinking funds, our net public debt will be £27,113,304, subject to an annual charge of about £1,400,000 for interest, rind £116,176 for sinking fapd, making together £1,616,176 —an animal burden requiring our most watchful attention. We really begin the year with only £207,662. This includes as cash on the credit side, the whole of the loans (including the guaranteed debentures) authorised to date, except the £5,000,000 loan. I showed in my last statement that the late Government had in various ways anticipated the new loan to the extent of £2,220,104, including £140 000 for contingent defence, and £2C0,000 for purchase of native lands, but exclusive of the cost of raising the loan, and that iv addition to this large sum, payable by the 30th of June next, there will be liabitities outstanding at that date of a further sum of ,-6947,177 for land purchase, and of £128,115 for contracts entered into before the present Government took office. These figures were given at the time I spoki? by the last Minister of Public Works; but I regret to say, after a most careful examination of the whole subject, I find that the figures 1 then gave were strictly accurate. My, honorable colleague, the Minister of Public Works, in consultation with the Engineorin-Ctnef, ,has been endeavoring to arrange an extension of the period during which these payments will have to be made, but ho warns me that much practical relief is not likely to follow. The committee, will, therefore, see that unless we can abandon some of our land purchase bargains, the loan is anticipated to the extent of £3,300,000. without including the sum of £154,791, payable to Canterbury aud Otago on account of impounded land revenue, or making any provision for the redemption of the guaranteed debentures, acid also without taking into account the cost of raising the loan. The Government belie re that not more than £3,000,000 of tin> £5,000,000 loan can be floated this year, and that it will be twelve months before we can place the other £2,000,000, and that we can not go upon the London mnrVet for two years afterwards. The question of appropriation will bo fully treated by my hen. colleague, tho Minis- ! tcr of Public Works, in his public Statement. Our only safety lies in limiting] our expenditure upon public works to a reasonable annual sum til! our whole railway system is completed. In my judgment £1,600,000 a year is, in fact, about double what ire ought to spend, or indeed possibly can speud.

EQUALIZING TNCOME AND EXPENDITURE. ■The Treasurer then spoko upon this .matter, arguing that the . land sales receipts should- not bo looked upon, and [form part of, the ordiuary revenue of the colony. Upon tho as«umption, then, that land sales receipts are no longer to form pjirf of ihti ordinary revenue, I eliminate them, and find that the estimated revenue f,v the year is £2.945,900, deducing trom the total estimated expenditure of £4,013.078, the services-included therein amounting to £247,500, we get £3.765,569 as the estimated expenditure of the year; and if from the estimated expenditure we talio tho estimated revenue, we get £819,609 as tho deficit for which wo have to provide for the future. The estimated expenditure contains an item of £275,020 for subsidies to local bodies. Many hon.-membew think this contribution in aid of rates wrong in principle. I am one of those who think ifc fair aud reasonable that the State, as a State, should contribute towards the cost of keeping open and improving the means- of communication throughout the country, and that itis altogether a mil-' take to suppose that by striking this item out qf the Estimates, the people of the polony will be relieved to that extent from taxation. To all those who have given any attention to local subjects it is well knowa that an amount equal to this large sum must be raised for looal works. Striking this item out of the Estimates will, therefore, be no real relief to flip .country at large, nor will it leave more mouey'in fche pockets of \ko settlers ; but the question ag to the fairesf and easiest means by which the necessary amount can be raised is, no doubt, open'to dis'eussion, and is well worthy of the serious attentroq'of'this'Htouae'. The Government, however, have come to the conclusion', after careful consideration that a better means than the present of raising this money can be devised, and they will, therefore, recommend that the subsidies next yea/ should be discontinued. Should the House determine to raise them/ltt^atioo will ua?e to be proportionately <

increased. Tbo important question of local finance is far too largo to go into thin session, therefore, I will say no more upon the subject now, except, Sir, that Government fully recognise tho fact that it is their duty to submit to tbia House upon its first meeting next session a scheme which shall place local Qnancc on a satisfactory, and something like a permanent bnsis. And by satisfactory, tho fiovernuienfc understand placing local bodies in such a position as will enable them to obtain as far ns it is possible, sufficient funds for all necessary works, while drawing a broad and distinct line between local and general finance, and such a scheme the Government will endeavour to mature before the next meeting of Parliament.

paorsiirr tax. Sir, no taxation is pleasant, and a new tax is especially unpalatable, the more so, if direct in its form, but it will, I think, be generally admitted that we have now reached a stage at which a property tax in some shape is unavoidable. The principle of the land tax has already been affirmed by this House, and there is much to be said for the policy of specially taxing unused land, but in my opinion it is not | practicable, and taking the ordinary holdings' of improved land I am unable to' see uyon what principle of justice or expediency it is held I hat this is She only form of properly which should be taxed. Why, I wish to know, shouM the farm of the hard working pioneer settler or the frontage of the struggling city tradesmen be taxed, while bank shares, mortgages, and other such property, are allowed go free? And I shall therefore ask the House to impose such a property tax upon the American model (including incomes), and thereby to affirm the principle that realised wealth, in whatever form, shall bear its fair share of the burdens of the State. The Government, after careful consideration, have come to the conclusion that an income tax is not applicable to the existing circumstances of the colony. It is unquestionably and unavoidably open to great inequalities; the machinery,.too, for collecting such a tax must be elaborate and expensive, and far out of proportion to the revenue to.be derived from it. Sir, the Government will ask Parliament to merge the land tax iv tho property tax, which wo intend to introduce, thus including land in the same category as all other property, making it equally, but not specially, liable to general taxation. Parliament has already approved of this principlo by directing, in the case of intestate estates, that real shall be treated as personal property for the purpose of succession and for taxation on succession. It would hardly be convenient that I ihould open the present occassion, describe the policy of the land tax, but the committee will, perhaps, permit me to say a few words upon the subject, as it is one of great importance. . The land tax was, I presume, imposed either—first, for the i purpose of revenue ; second, to check the growth of largo landed estates ; third, to prevent land being held for specula!ire purposes ; or, fourth, for all these reasons together. With regard to the first, I would say that as we hare some twenty million acres of land for sale, some five millions of which are classed as agricultural land, and as the one object which we all desire most is the settlement of people upon the land, it is surely unwise, and will tend to defeat the object wo have in view if we impose special burdens for revenue pur- j poses upon capital invested in land. I would ask upon the second and third reasons, what justice or wisdom is there in specially taxing that class whose growth is essential to the advancement of the colony in order to prevent abuse in the acquisition of large quantities of land, or unfair profits, by a few individuals; and in reply to the fourth reason, I would say such a combination is unjustifiable when it results in the special taxation of a class possessing no privileges. Sir, I entirely dissaprove of land being held for speculative purposes. T. desire to see. the country in possession of a population cultivating their own freeholds, and the legislation proposed by the Government is conceived in this spirit. That there are some large estates which I should be glad to see occupied by small freeholders is true; but, sir, I have satisfied myself that the tendency is towards disintegration rather than the accumulation of large properties, and that speculation in land to an injurious extent.does not exist in such a form as to be removable by legis lation, and certainly will not be remedied by a land tax on all land. Sir, it is a very significant fact that in hardly any country in the world is the proportion of properties to the population to great as in New Zealaud. I may state for instance, that in France, which is usually cited rs a favorable instance of the subdivision of land, tho .proportion is 1 property to 7*l people; and in Belgium where land is probably more subdivided than in tny other European. country, the proportion is 1 property to 4*61 peoplo ; while in New Zealand there, is 1 property to 5 people. And when it is remembered that 99,000 persons out of a total population of 414,000 have been brought out as assisted or free immigrants within the last few years, our case appears much stronger. The proposal of Government is to tax all property, whether real or personal, that a man possesses,-after deducting in each case his just debts and also a sum of £300 as exempt from taxation, but as I have aaid before, to exclude all incomes. It is very difficult with the data at my command to estimate accurately what such a tax will produce. We know, however, the valuation under the Land Tax Act gives £99,50Q,0Qf) as the inj. proved value of real property, and it is estimated tbat the total personal pro- [ perty owned in the polony is not less thari £18,700,000, making a gross total of taxable property of £118,200,000; deducting from this £5,000,000 on account of the £300 exemptions, we get £}.;£},2QO : OOO as the net taxable amount, as far as it pan now be estimated. I giyo this estimate with diffidence, but*, I think, I have rather under than over stated the sum which will be subject to taxation. Tstfine. therefqre, £113,200,000 as'tho sum liable to taxation, this one penny in the pound, the amount the Government propose to ask for, will give £4.70,000 as the product of the property tax. THE TAUIFF I have said, six;, that the Government propose toraise additional Customs duties. With respect to the encouragement of local industries, t have had many communications with geiftlpraca interested in the promotion of local manufacture. The Government, therefore, propose to appoint a iioyal Commission during the recess to examine and report upon the whole subject. Iv - the meantime, the Government propose to admit many articles duty free to assist local manuCte*

fcures as much as possible. As to (lie dulits upon tea arid sugar, upon these articles we dp not propose to re-impose tho duties remitted last year, but it may be necessary to reiniposo them next year upon a general revision of taxation. The articles upon which wo propose to increase or impose duties arc almonds, nuts, chaff, corks, dried fruits, fresh fruit (other than oranges and lemons), window glass, grain and flour, malt, split peas, hops, iron fencing, tacks, matches a"d vestas, preserved milk, nails, perfumery, patent medicines, timber, salt, stearine, spirits, tobacco and cigars, wine, and all goods at present charged ad valorem duty. The total amount they are estimated to produce is about £300,000. We propose'to reimposc the duties on timber and grain. Wo think experience has shown that their. repeal has very injuriously affected Iceal shipping (ride, also the timber industry, and which wo are certainly not justified in seriously crippling without some compensating advantage to the State, but which we altogether fail to see hat fdl-, f lowed the repeal of these dutiesr With" regard to spirits we shall ask for an increased duty of 2s per gallon, granting at the same time an allowance for such as are under proof, the same at is now-. charged upon spirits over proof. The total increase on these we estimate at £56,000. We propose to increase the tobacco duty by Id per lb, and to authorise its manufacture in bond.. Theincretjf^ ' on this item is estimated at £50,000. As to the danger of illicit distillation and smuggling, nothing but experience can tell us when we have reached the maxi> mum which these articles will bear without loss of revenue. It is also proposed to remit the duties on carriage makers' and saddlers' ' ironmongery, carnage makers' leather, briggy shafts, bent carriage timber, hTckorv, hatters' material, fine wire for. brush making, sheet zinc, plain galvanised sheet- iron, sulphate of soda, almonds (such as are used in confectionery), phosphorus, add oil of Khodium, tho remissions on . which will amount to £15,000, and it is hoped that with these reductions, local industries will be placed in a more advantageous position. The Government also propose to abolish all light daetfbr vessels employed iv the coasting tr.ide. I hope, sir, the time is not far distant when we shall be able to extend remission still further in this direction. The loss to revenue by this remission will bo £5000. ; : STAJCP DUTIBS. ; , * .: - . The Government have determined not to ask for any increase of Stamp Duties, except-those upon successions. It readmitted that on the occasion of a .sue?; cession to large property the State nay demand without unfairness to anyone a. contribution having some relation to the ■ amount of the estate. The Government propose to revise the existing dues in the! direction of making large accumulations' contribute to the public exchequer in greater proportion than hitherto. It is estimated tbat these additional duties will, produce £16,000 at present, and will be constantly increasing. * " SUMMARY OF PHOPOSALS. Summarising, then, my proposals, they : will stand thus: To be raised by property tax £470,000, by Customs £300,000, by stamps £16,000, making a gross increase to the revenue of £786,000, from which, however, must be deducted the remissions stated above, amounting to £20,000; to* gether with the land tax £147,300, which it is proposed to merge in the general property tax next year, thus giving a net increase of £618.700. I think I may look for this relief at an early date. It is proposed then by these means to raise £648,700 additional revenue, and if this be added to the revenue from present sources, which is estimated to amount to £2,915,900, we get £3,564,600 as the total revenue for the year. Tho estimated expenditure I have taken as probably £3,489,949, and if we deduct this sum from the revenue we arrive at an estimated surplus of £74,651. <From these figures hon. members will see that the proposals of the Government equalise our expenditure and income..

HOW THE DEFICIENCY FOB CTTBBEHT TEA.B 13 TO BE MET. I shall propose that the financial year shall in future end on the 31st March. The first and obvious advantage which Will follow this change it that it wilt shorten the period during which our present estimated disparitj between, in* come and expenditure will run, and will enable us to begin ajnew financial year by the time our increased taxation has come fairly into force. I hare already said that the deficiency for the * year will probably amount to £951,002, but should the House sanction the proposed change in the financial year, our current financial period will terminate on Slat. March next, and the deficit to he immediately provided against will be proportionately diminished. I estimate £706,886 as the amount of deficiency to be provided for. Sir, il is now the middle of November, and we hare already issued and absorbed deficiency bills to the amount of £600,000. It is neither possible or wise to attempt wholly to meet this deficiency by taxation. We are, I hope, about to take a new departure in finance. The proposals of the Government if given effect to insuring in the future ah equilibrium 'between expenditure and income, but to secure this result taxation of a very onerous character will have to be imposed. The/ Government will therefore ask authority ' to provide by loans for such deficiency as may be found to exist on 31st March next. I shall aslc tiie House for authority to issue Treasury tylls. These latter the Government propose to have inscribed M soon as possible under authority of the Co'isolidated Stock Act, 1877, and I make this proposition with great regret. I hare said, by ending the financial year on 31st March, it will enable the House to moot about the middle of iMay, which, I think, is the earliest month that will suit the general conrenienee of hon member*. Should the' House agree to the proposed change, I shall ask, sir, authority to continue tho expenditure during the June quarter upon the scale of the estimates yotod for this year. Thil seems (o mo a hotter plan than carrying on the Government by means of unauthorised expenditure and Imprest Supply , Bills, upon estimates which have never been seen by the House. The plan will operate in (his way; The financial year ending on ths 31st March, tb^e Treasury wi!l have plenty of time to get t|ie Estimates and Financial Statement, nndthe accounts of the year, in as much in detail as may ha desired, ready bofore tho House meets, and immediately upon the Houses meeting rotes for the several classes could be tiken on account as in England, and the House would then know for what purposes the money was rotod, and the proposed toale of expenditure for the -

year. I should propose that each department send to the AiUit Office returns showing its outstanding liabilities on tho 31st of .March within forty duys of the , end of the year, and the Audit Office should place the returns before Parliament'within ten days of its opening. Sir, my task is nearly done, I hare to thank the committee for the land and patient hearing it has given mo, and to say in conclusion, that I am fully sensible of tho responsibility res'ing upon the Government, and the House at tho present timo. If proposals are submitted as part of a general scheme, we feel, sir, that we shall bo utterly unworthy of the trust reposed in us, if we had only resorted to temporary expedients at such a crisis. The time, sir, for temporary measures has passed away. We hare endeavored to go to the root of tho matter, and at once. by a resort to fresh taxation and other important reforms to place our finance on what wo believe a sound and enduring basis. Sir, the imposition of fresh taxation'to such an extent as I have proposed to-night, and at such a timo as this, can only be justified by iho necessities of the case. The position is one which admits of no hesitation. We miijht attempt to extricate ourselves from a prcsentdifliculty - by forcing the sale of land at a price and upon terms which would involve large sacrifices in the future settlement cf tho colony. Both our credit and our capital would ultimately suffer by such a course, PKeven if it were temporarily successful. On the other hand, by the adoption of our proposals for increased taxation, for placing the bulk of that taxation upon those most able to bear it, and for entering on a "course of careful administration, we shall permanently strengthen the one and conserve the other. We make theso proposals with a firm belief in the ample resources and rallying power of the colony, and in entire confidence that the good sense of the colonists will prefer present self- denial to any sacrifice -'of the permanent interests of tho country. Sir, in whichever way one's plans will be dealt with, this at any rate is certain that the country will be satisfied with no temporary exprdients, will snbmit to no make shift, but will insist upon our finance being placed on a well-defined, solid, and lasting foundation. The Colonial Treasurer concluded by moving the following resolutions:—"lst. That in Hpu of the duties of customs now charged on the undermentioned articles, the following duties of customs shall, on and after the eighteenth day of November, 1879, be charged thereon, on importation into N"ew Zealand, or on being cleared from any warehouse for Home consumption, namely almonds in the shell, and nuts of all kinds, except eocoanuts, 2d per lb; chaff 10s per ton; corks for bottling, 15per cent, ad val.; fruits, dried 2d per lb; fruits, fresh, other than oranges, lemons, bananas and pine apples, 15 per cent, ad val.; glass, crown shet t and common window, 2s per 100 feet superficial; grain and pulse of every kind, not otherwise enumerated 9d per lOOlbs ; grain, when ground or in any way manufactured, Is per lOOlbs; malt, 2s per bust el; peas split, Is per cwt; hops, 6d per lb ; iron fencing wire, staples, standards, 20s per ton ; iron, galvanised, corrugated, sheet, guttering, ridging, and spouting, washers, screws, and wire netting, 40s per ton; iron tanks, 5s each; matches of all kinds 25 per cent, ad val.; milk, preserved, 15 per cent, ad val.; nails 3d per cwt.; perfamery and toilet preparations not otherwise enumerated, 25 per cent, ad val.; proprietary medicines, commonly called patent medicines, or any medicine or preparation of which the recipe is kept ■ecret, recommended by advertisement, bill or label, for the relief of any disorder or-ailment, 25' per cent. ad val.; timber, sawn rough, 2s per 100 ft. super.; timber, sawn/ dressed, 4s per 100 ft. super.; timber, shingles, and laths, 2s per 1000; timber, palings, 2s per 100; timber, posts, 8s per 100; timber, rails, 4s "per 100; •alt; 20s per ton; spirits, or strong waters, not being sweetened or mixed with any article so that the degree of strength thereof cannot be ascertained by Syke's hydrometer, for every gallon of the strength of proof by such hydro meter, and in proportion for any greater or less Btrengtu than the strength of the proof, and for any greater or less quantity than a gallon, 14s pc? proof gallon ; other spirits being sweetened or mixed where the degree of strength cannot be ascertained as aforesaid, 14s per gallon ; spirit liquors and cordials, 14s per gallon ; perfumed spirits and Cologne, 2ls per gallon ; stearine, Id per lb; tobacco, 3s 6d per lb ; cigars and cigarettes, 6s per lb ; wine other than sparkling and Australiao, 5s per gallon'; all articles not otherwise enumerated, which are now chargeable with duty 10 per, cent, ad valorem, 15 per cent, ad valorem. 2. That the duties of customs chargeable upon the goods, wares and merchandise hereinafter mentioned, imported into New Zealand shall cease and determine, viz.: almonds, barbary bitters' and other for confectionery 5 bolts and nuts; carriages, morocco, japanned and enamelled leather, and tanned and dressed sealskins, buggy shafts, bent wheel rims, and other bent carriage timber, hickory •unwrought, batter's galoons and hatter's calicoes; fine iron, brass, and copper wire for use in brush making, phosphorus and oil of rhodium, sulphate of soda, saddles, ironmongery, grindery, sheet zinc, piate, aud sheet, galvanised iron.

kfter the delivery of the Financial on a resolution to temporarily collect the new duties, Mr Macandrew" said thaJJn-«,«*ee!ng-to-the resolution, it was not to be understood that they were in any way conmHtting themselves to the proposals contrived in the Statement. He regretted tlie4i'fi'puta- i tion made against the late Government, j and denied that any contracts had been entered into by that Government, unless of some very trifling amounts, more than were covered by the unauthorised expenditure. Had tbe Treasurer boldly announced that the depression was the result of the extravagance of the continuous Government, agravated perhaps by general depression in trade, ho would have b^en muoh nearer the truth than ho was. He (Macandrew) was not prepared for the enormous taxation proposed; still he would not, on that occasion, offer any more active opposition. Sir George Grey denied that the finances of Ihe colony had been allowed to drift into an unsatisfactory state. The real difficulty had arisen from the stoppage of the land fund, the revenue from which had gone on increasing year by year. In July last, they prepared to bring dow"n a proposal for taxation infinitely superior to the oue now proposed, but Chat proposal was burked by the action of the Treasurer. The present Government was relumed to get rid of the land tax. '-|^ e 7 were puV into office by the Bank of Ntw

Zealand, aided by the Lop,is!ativo Council and the groat hnded hiiert'st, for (In express purpose of getting quit* of that tax. Tho composition of V;e Ministry ilst'lf also strengthened that opinion. Agents were at work in all directions for getting hold of large tracts or Native fond, and ifc was to aid ilu'tn in those transactions that a bill f«>r suppressing them had not been already brought forward. If the Government was not so disposed they would, go on at once with the Native Litids BUI, nml not do away with the Land Tax. What they meant by a property Tax was in fact to tax improvements, while th<- great land speculators were to escape taxation; the deficit could have been met by increasing tho present Land Tax and without placing anything upon the Customs Ucvcnue. Then aguin, no provision was made lor getting at those persona who drew large incomes out of the Colony. Tho taxes upon tea and sugar were not to bo put on this year, but evidently it was intended to put.them on next year. It was intolerable that the colonist should be made to bear the heavy burden of taxation prop- sed, while tho wealthy classes in England, who derived largo incomes from tho "colony, were allowed fo go free. Ho did not believe that the deficiency mentioned would be found to exist; the colony was about to enter upon a-more prosperous slate of affairs. The statement about the deficit was calculated to damage New Zealand in the estimation of tho money market. Tho statement that the Land Tax was to merge into a property tax was a misrepresentation. What in reality it meant, was, that previously the friends of the Government, holders of large estat-s, were to escape taxation altogether. He hoped the House and the country would resist such a proposal. The country itself was in a healthy state, and his only fear was that Government would create a panic, and thereby bring about the very state of things they professed to deplore. It was not necessary to limit the expenditure on public works; if they meant to practice retrenchment why not get rid of the Agent-General's Department at Home. If the proposed system was carried it would be the greatest' blow ever New Zealand had. He counselled the House to refuse supplies until the readjustment of representation had been provided for. He'denied that anyone had gone to the hustings and said that tho Land Tax would bs repealed. He believed it,was unknown throughout *New Zealand that such charges as those now referred to would be imposed. Mr Eeader Wood said that the accounts showed that there was a deficit within the last few months of £GCD,OOO Treasury Bills; that itself showed that the finances of the Colony were in a most alarming state. The late Government was a great deal more reckless than the Governments of which Sir Julius was at the head. He (Sir Julius), always took care that funds were provided before liability was incurred; not so with the late Government, they contracted debts as had been shewn without the slightestprovision having been made for payment. Without some heavy system of taxation it would be utterly impossible to bring matters back to a satisfactory condition. They had been told by the previous Government that the railway works system should be pushed on, the Auckland lines being specially mentioned. Now the fact was that not one of these lines paid, and the result was that the more those works were pushed on, the more hopeless would be tho state of their finances. He (Sir G. Grey) had told them that they were virtually • nominees of the large landed proprietors, tho Bank of New Zealand being specially mentioned. Speaking for himself, his election had been mainly op-, posed by that institution and its friends. It was a misrepresentation to say that it proposed to do away with the land tax. The tax was to be doubled, and other sources of wealth added thereto. Altogether he considered the finances in a most alarming state, and he hoped the House before it separated, would insist upon the whole question being fully and fairly met, and the whole question honestly handled.

Mr Moss designated the statement as one of the most cold-blooded ones he had ever listened to ; it proposed a burden of 30s per head at the very time when it was hard and-difficult to live.

The motion was then put and carried, and at 11.30 p.m. the House, adjourned.