"Want of Confidence.Debate.

Thames Star, Volume XIII, Issue 4248, 12 August 1882, Page 1 (Supplement)

"Want of Confidence.Debate.

Major Atkinson moved the second reading of the the North Island Main Trunk Railway Loan Bill. He understood everyone thought that the North Island trunk line should be made, but the amendment intimated showed he was mistaken in that view. The loan was necessary and reasonable in the colony's best interest. The position of the colony when Government had decided, whether further borrowing should take place, was this,—they had either to decide in the affirmative or else break faith with those parts of the colony waiting their time for railway communication. He ventured to say that the Public Works scheme, so far as it had gone, bad been a decided success. The state of the colony in 1870 was very differeut from .-what it was no*. The I taxation, so far as it had "gone, had beeu a j decided"success. The state of the colony | in 1870 was very different from what it was now. The taxation, so lar as the Customs duties per head was concerned, was less by 5s now than it was in 1870. The increase of taxation had been imposed on property, and did not affect the laboring- classes. Supposing, for argument's sake, that the Customs duties were increased, which he positively denied, then its equivalent had been more than returned to the population in the shape of free education. Again, wages were better now than in 1870; employment was easier got, and an enormous saving had been effected in travelling and housing; he estimated that saving alone at between £300,000 and £400,000. Then again, they had settled 100,000 persons in New Zealand from the old country ; the condition of these people and their pros pects bad been vastly improved, and if they had done nothing more that was a great work. Such being the effect in the past, there was nothing in the present circumstances to make them shrink from further borrowing, so long as they spent it on reproductive works. They had about a million and a half expended on works fhat were as yet incomplete and unproductive. They had a iarjje (jumbtT of men emploj'ed on these works and a still larger number depended on ihese men, so that if they threw them out of work, as they would have to do if no more money were raised, they would be forcing a serious responsibility indeed. They had on hand only £435,000 to continue their expenditure on public works, and he hoped that broad fact would be borne in mind. That, with care, would carry them on for a few months—till the end, say, of next February. The total number of men employed now by Government contractors on Government works was about 3000, and with the number dependent on these and the number required to supply them there were at least 10,000 souls to be considered. Were these to be thrown out of work at midwinter? In view of these facts Government had two points to consider: first, could the public works be carried on at a reduced rate of expenditure ; and, second, whether money could be raised locally to go on with. After careful consideration they found sufficient money could not be raised in the colonies to carry on the work at even a reduced rate. Under these circumstances they felt they must go on the London money market. It was of course competent for Parliament to say all borrowing ncust cease, but before doing that they would be bound to say how the work was to go on. What would be the case of the colony if they ceased borrowing, in February next, or about the beginning of winter ? A great number of men would be thrown out of employment, and of necessity a large drain of capital would leave the colony. As a consequence its weight would be greatly reduced, and affairs otherwise paralysed : a commercial crisis would occur. They were told that if they delayed borrowing, their credit would increase, and they would get their loans at a cheaper rate : the fact was, any such saving could not in any way compensate them for the serious loss sustained in the meantime. Another argument was that a better scheme should be devised for making this fresh burden fall on the class best able to bear it. Those who contended thus should submit a scheme, and it would if feasible, no doubt, be readily adopted, and not attempt to delay progress as was proposed. Kegarding the North Island railway, it was argued that the loan should not be authorised until the direction of the line had been decided upon, and the difficulty with the natives overcome. It was not intended to raise the money till this was done. He submitted that the proposal of Government as a whole made the apportionment of the money as between the two Islands fair. If they did not authorise the North Island loan now when they were asked to pass it, at some future time the South Island would be putting forward additional claims for another two millions, and increased borrowing would have to be resorted to, with the view of satisfying these claims. If; had been objected that | not more than half the money was to be employed on railways : this had always 1 been the case. He would ask them to go through the schedules of these works and say if there be any one that could be reasonably struck out. There was, first, the £200,000 for native lands ; they were already committed to that. Public buildings, £300,000, that was to last for three years; they had been spending £100,000 upon school buildings, and it was well-known every board was pressing for more than they got. Out of this sum £90,000 was engaged for lunatic asylums, so that members would see that their districts would be provided with, less than they asked for. In these circumstances he asked members to say if their schools and other buildings were not to be provided for. With an increasing population their difficulties were bound to increase. A continuous and regular flow of immigration did not tend to reduce but rather to a steadily increasing rate of wages. It was nominated immigation that was provided for, which everyone knew was the best class of immigration. He did not think anyone would object to the provision made for opening up Crown lands, as that was reproductive. .Regarding the goldfields provisions, he thought that would be considered a reasonable proposal. Harbors were also an expenditure would be defended on colonial grounds. The last item—telegraph extension was also a proposal which did not require to be defended. The rule laid down with regard to railways was,that they were to extend only the main trunk lines, and in the case of branch lines con* tinue those alone likely to give the quickest return for their output. Mr Montgomery, in moving that the loan proposals of Government were not satisfactory, combated the statement of the Colonial Treasurer that the Loan Bills had been distributed some weeks ago, whereas they were not distributed until

the Ist inst. That was a damaging statement, and ought not to have been sent broadcast over the colony to the injury of the Opposition. In the Financial Statement there was no mention of two Loan Bills ; all that was said was about one bill. Tbe first mention of two bills was in the Public Works Statement, and since then they had kept back, which was simply a practice of the Colonial Treasurer, who always kept back his important measures until the fagg end of the session. He objected to the whole of the loan proposals of Government, and not to any one bill. They had been told that it was after consideration that two bills were decided npon. In the Financial Statement there was no evidence of a second loan bill, and as a matter of fact he did not believe that until members had assembled in Wellington and pressure had been brought to bear that two bills were decided upon. He denied.that immigration would raise wages. In 1878-79 ihey had a largo immigration, and he asked what was the state o« the cane then ? Why did not the Treasurer compare it with that of two years ago instead of with the present time? They had to vote money then to keep these men in work—that was like immigration raising wages. What he wished was the burden of these loans should be placed on the right shoulders. He had never given it to b» understood that he was against borrowing altogether for the extension of their public works, nor had he ever objected to substantial justice being done to the North Island. Common prudence, however, suggested that a railway route should be decided upon before money was allocated for them. The North Island Loan Bill simply said it was to be carried south from Te Awamutu, but nothing was said as to the direction in which it should be carried south. Again, in the South Island, he saw a similar proposal; the line was to be taken from Blenheim south ; was that line to be taken through? one or two large estates? Was that not the ultimate intention'? and if it was could it bo said that these loan proposals were to be considered satisfactory when uy provision whatever was proposed for the Middle Island. That an-.i the. West Coast line of this loan proposal meant £200,000 per y ear for interest, and it was very necessary indeed that they should know how and by what means that large sum was to be provided, for the colony was just getting its head above water, and it was requisite that this additional weighting should be carefully looked iuto. The Treasurer should have asked for a moderate amount, — say half a million, to complete the railways, and carry on till next ses« sion railways well advanced/ and then bring down a more elaborate proposal next year when they were better prepared with their plans, and not have made a proposal for railways along routes of which they appeared to have but little idea. If they desired the efficient carrying on of public works, it was most important that they should not give too much money into the hands of Government at once. He thought it would be far more prudent to delay these large loan proposals for a year. In the meantime, the feeling of the colony would be ascertained, and then next session they would be in a position to shape their course accordingly. The Opposition did not wish to waste time over this debate, and he hoped, therefore, speaking for his party, that the j debate would close to-night, or at least to-morrow night. If they did not win the day, they would at least have the satisfaction of knowing that they had done, their duty. >

The Hon. Mr Johnston followed Mr Montgomery, and spoke at some length. In reply to him, Mr Buchanan moved as an addition to the amendment the words, " inasmuch as it is not expedient during this session to authorise any new loan," and he spoke against any large loan at present. i; Major Atkinson said the Government never intended to raise a largo loan. They did not intend to raise the North Island million till they were in a position to determine the route of the line and to commence it; and as to three million loan, it was only intended to raise one million a year, and clauses to provide for this would be introduced.