8.—6

FURTHER LOAN FOR PUBLIC WORKS JPDEPOSES. We come now to the question of the necessities of the Public Works Fund. It is our policy to vigorously push on with the works in progress. The large undertakings in hand must as rapidly as possible be brought to completion in order to reach a remunerative point. To enable this to be done we must ask the Parliament for further borrowing-powers, which will, I am sure, be recognised as necessary where the life-blood of our country is so dependent upon the provision of railways, roads, telegraphs, telephones, and other public facilities. The timorous assert that we should never spend more than our income; but the practical colonist will agree that where we can create an asset in 'exchange for our borrowed moneys we are fully justified in raising funds in aid of a vigorous policy of progression. Admitting this to be economically sound further borrowing is necessary, as it is not safe finance to depend upon surpluses' The Government has therefore decided to ask for authority to raise £1,000,000 in aid of public works. At the same time, it is not proposed to go to London for the loan, as there is little doubt but that it can be easily raised locally at a reasonable rate of interest. CONCLUSION. The policy of this Government is a progressive development of what has always been the policy of the Liberal party—to advance, but on safe lines, sparing no effort to further the social, industrial, and commercial welfare of the colony, and taking care to keep on lines that are financially and economically sound. J The proposals I have indicated include amongst other important matters sinking funds to redeem unremunerative loans, ear-marked endowments for education and other specified purposes, national annuities for the encouragement of thrift, reductions in postal and telegraph rates and increases in postal and telegraph conveniences, vigorous prosecution of railways, roads, and other public works, reform of the land laws, and settlement of Native lands. I feel confident that with the help of our friends on this side of the House, and not being deprived of the benevolent criticism of honourable members opposite, these proposals will be given effect to in such a way as to further promote the prosperity of New Zealand and the happiness of her people.

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