The Customs Duties Bill.

Auckland Star, Volume XIX, Issue 140, 14 June 1888, Page 2

The Customs Duties Bill.

(BY TELEGRAPH—PARLIAMENTARY

REPORTER.)

Wellington, this day. The debate on the motion that.the Speaker should leave the chair in order thab the House might go into commib.ee on the Customs Duties Bill, was resumed by Mr Rhodes, who said his reason for opposing the second reading of the Bill was that he had pledged himself to oppose further taxation, as he believed that it would yet be possible to effect further retrenchment;. With most of the financial proposals of the Government he quite agreed—notably the abolition ot the Native and Public Works Departments. He intended to support Mr Bee-ham's amendmenb, because he believed bhab until the Public Works Statement came down it would be impossible to decide what economies could be effected.

Mrßlakesaidbhabbeii-g neither free trader nor a protectionist, he was at an especial advantage in speaking on the financial question. Looking at the experience of the majority of countries who had adopted free trade, he thought the doctrine had seen its days, so that we must; simply legislate to meet the necessities ot the colony, regardless of either theory. He saw no better method than that proposed by the Government, whose policy he thought met with the approval of most thinking men, and he must therefore support it.

Mr Izard said that all the Wellington members, including the Minister for Education, had been returned to support a policy of free trade ; but Ministers, for some reason into which it was not necessary to inquire, were now found deserting their principles. Though the Premier had carried out retrenchment to an extent which was creditable to himself and his party, he took leave to doubt whether it could not have been carried to such an extent as to have avoided the burdensome tariff which it was now proposed to place upon the shoulders of the people. Not a year ago he had voted against raising the school age. But he had some reason to doubt whether his judgment at that time was correct, and though he could not now say definitely what his action would be, it would be possible that, if the question were again raised he would be found voting in the opposite direction. School fees, say to the extent of a shilling a week, might well be "charged for education beyond the Fourth Standard, and would inflict very little burden upon the poorer classes. Economies could be effected by abolishing subsidies to the San Francisco mail service, ar_d those payable to local bodies. Tine free traders being in the minority, it was almost beating the air to combine in opposition to the tariff', so that he regretted t .iat Mr Beetham had moved his amendment which he would neverthe-

lesssupport, though ho feared it would be merely waste of time. The Government party would be mainly composed of free traders, but the latter had been deserted by Ministers, who had placed themselves at the mercy of their opponents. The protectionists would deny to the Government any credit for the policy which they had brought in, and he very much doubted whether they would supuort the Ministry when once the tariff became an accomplished fact. He could not help thinking that the Government would rue the day when they adopted such a policy, and would be thrown back on their own resources. (A voice : " Nevah !_" —cheers, and counter cheers.) The constituents ought certainly to havo beeo heard before such an alteration was made in the fiscal policy of the country. Prices had already been raised on account of duties, and he was satisfied that the working classes would yet bewail the day that saw protection adopted. All the advantage would accrue to the manufacturer, who would derive his additional profits from the pockets of the poorer consumer. The tax upon salt was one which would be specially harassing to all kinds of colonial industries, and was unreasonably heavy. One of his constituents who made'whips had pointed out to him that the tariff would have the effect of retarding that part of our industries. Mr Anderson urged that the cost of erecting new school buildings should be thrown on local bodies. He was in favour of raising the school age, of doing away with one of the mail services, and of reducing the property tax exemption to £250. Local bodies should be educated up to relying on their own resources, but the subsidies ought not to be suddenly withdrawn. He preferred a continuanco of the property tax to the imposition of a land and income tax. He disapproved of the heavy taxation sought to be imposed. Discussing the tariff from tho free trade standpoint, he said that he hoped that their day had not come.

Mr Loughrey agreed with the tariff as a whole, although lie disapproved of some of the items. Mr R. Thompson thought the retrenchment policy would havo to be carried further. Ho did nofc approve of tho proposed abolition of tho San Francisco mail service, or of subsidies to local bodies. If Mr Beetham had proposed to reduce the Estimates by a lump sum he would have supported the amendment, but under the circumstances he could nob do so. Mr Monk advocated the taxation of absentees, and spoke in disapproval of the property tax as being inequitable in its operation, and he commented particularly upon the administration of the f>ystcm by Commissioner Sperrey, whose supervision of the valuations he strongly condemned. On resuming at 7.30 p.m., Mr Monk continued his address, and argued vigorously in favour of the theory of protection, and passing on to other points he urged a reduction of the defence and survey expenditure. If railways were placed under a local Board their management would bo immensely improved, and no man who had already made a reputation could be expected to take charge of them. A sum of £40,000 could, ho believed, be saved upon education, without closing even the smallest country school. Rebienchmcnt should be begun in Parliament, where there was wasteful expenditure upon tho printing of papers. If tho Government were turned out ot office on account of their policy of protection, he was convinced that they would come back with alarger majority and greater kudos than ever. Mr Hobbs twitted Ministers with their silence in the face of what was tantamount to a motion of no-contidence, but proceeding to speak, as he said, on behalf of the Government, he argued thab Mr Beetham ought, instead of pubbing mere generalibies into his amendment, to have proposed a reduction of tho Esbimates by a lumpsum. Mr Beetham had nob pointed oub a single item bhab could be reduced excepting the San Francisco service, and ib would be inexpedient to do bhab, seeing that the United States were proposing to remove their wool duty, which would cause an immense trade between this colony and America. Besides, without) that service what should we do in the event of war? Encourajromcnt of local industries should be bhe wabchword of bhe colony. In conclusion he urged bhe House nob bo waste bime, bub bo geb on with bhe business of the counbry. Mr O'Connor, afber reviewing, the financial proposals, said he was quite prepared to supporb bhe Govennnen b till he found gentlemen who were more capable cf administering the affairs oi the country, aud he was satisfied that Mr Beetham and other members of tho free trade party could not do so.

Col. Fraser was prepared to give the Government a liberal support on their tariff proposals. Mr Moss was sure we ought to be thankful that our credit had fallen, because it would now make the colony really face its position at lasb. There were only two points in the Statement to which lie had grave objection—one was the absorption of the Land Transfer Assurance Fund, and the other was bhe bea duty, against both of which he sbrongly protested. It was unfair to cast upon protectionists bhe responsibiliby of bhe extra taxation proposed by the Government. If they had had the framing of the tariff they could have avoided two-thirds of the duties proposed, because the imposts they desired would be of a defensive character, instead of revenue-raising. He protested against the way in which members were prevented from taking a colonial view of the tea duty question, because they had to consider it in the same position with their petty local subsidies ; thus it was impossible for them to give an independent vote on tho subject. Other countries had sunk into depression as bad as ours, but had recovered from it, and he was satisfied that we also would. If bhe policy of protection were • persevered in, we should soon overcome the difficulties into which we had been brought by reckless expendibure. The New Zealand brade would soon resume ibs nabural elasticity, and its people become as hopeful as they had hitherto been despondent. Ib was with this object thab he would supporb bhe bariff proposals, though he did nob albogebher agree wibh them, and hoped that some of them would be considerably amended. Mr J. McKenzie would support the Government in imposing the necessary taxation when he was satisfied that all the necessary retrenchment had been effected. The Minister for Education defended himself from the charge of inconsistency which had been brought against him,'and said that as a matter of fact he had nob varied one jot upon the subject of aid to local industries. Dr. Hodgkinson would support Mr Bee- ! tham's amendment by way of a protest against the taxation of the country beyond the necessary degree. Mr Taylor opposed the amendment. Mr Ormond ventured to think that the issue of this debate would show that the House and the Government would have to come to a wise decision if bhey had determined whether certain services could be reduced before the second reading of the Bill was proceeded with. He was opposed bo the Government very materially on their tariff, but, unlike other hon. members, he hoped to continue to give them supporb afber bhis question was disposed of. In bhe recenb elections bhe Government and their supporters were returned on the understanding that there would be a reduction of the expenditure, and no increase of taxation ao long as it could be avoided. He did not leave the Government on any question of protection or free trade, but because of their imposition of taxes which ho behoved to be unnecessary until several costly sorviccs had been dispensed wibh. Tho baxulion which, unfortunately,

he believed would be imposed by the votes of a large majority of the House was unfair and unjust in its application, and would be more largely felt by the industrial classes in the country. This taxation, he wished it to be understood, was not being brought about by hon. members pledged to no further taxation till all possible retrenchment had been effected. The effects of the proposed taxation would be to place from 10 to 15 per cent, on the commodities used by the industrial classes. Had the property tax exemption been reduced to £100, and all unnecessary services lopped off, no extra taxation would have been required. He firmly believed that the House would now agree to raising the school age to six, but complained that the annual education report was misleading, and evidently intended to throw discredit on the Education Boards. By abolishing subsidies, much of the extravagance of local bodies would be done away with, and he was still convinced that his proposal for the funding of the deficit was a, sound one. He would have to oppose the Government policy at every cost, though in this case the cost would be only an unfortunately necessary severance from the Ministerial Darty. Much better results could be expected from the land policy introduced last year than from any system of protective duties, yet the colony had not had time to fully recover from the maladministration of the last Government. He did not altogether approve of tho native land policy, but even it was an improvement upon that of the Stout-Vogel Ministry. It was to be regretted that the Government had not made such proposals with regard to taxa tion as would have kept their party together. There were, however, other matters to bo considered than those _of taxation, and he would bear these in mind in shaping his future course of action. Mr Buxton spoke approvingly of thetariff proposals. Mr Menteabh said he understood the Minister for Education would claim that he had all along been a consistent protectionist. He would, thorefore, like to know how the Premier made out that his Cabinet was a free trade one. It was now proposed to impose upon the people, through the Customs, the identical charges which were objected to at the general election. He, for one, could not see the consistency of doing this. If the Government proposed to cease borrowing, they would be justified in charging school buildings to revenue, but it was most inopportune to do so at a time when a new loan was being raised, to be devoted broadcast to public works. If the country was especially emphatic on one point during the election, it was that railways should pay for themselves. Yet Customs taxation Mas now proposed in order to make up a falling off in railway revenue. On the explanation of the Minister of Education he must conclude that the Ministry was a protectionist one, and not one of free trade as claimed by the Premier. This being so, his election pledges lefb him no alternative but to oppose them. On the motion of Mr O'Callaghan the debate was adjourned till this afternoon. The House rose at 12.15 a.m.