THE SPECIFIC PLATFORM.

Auckland Star, Volume XXI, Issue 236, 6 October 1890, Page 3

THE SPECIFIC PLATFORM.

PART 11.

(Continued from Star of 2nd October.)

SWEEPING RETRENCHMENT.

THE URGENT NECESSITY.

[Part I. appeared in the Star of the sth of August, and the Isb, 2nd, and 3rd sections of this article on the 26th and 29th September, and the 2nd October.]

*"Such a reconsideration tho Government have given to the matter, but I regret to say without seeing their way to reduce, much less to abandon, the (property) tax, etc."—Treasurer in Financial Statement, June 25th, 1890. "The Government would have been well pleased if they could have seen their way to make any proposal to reduce taxation. We are. however, con vine ad that it is impossible to make any further appreciable reduction in the public expenditure, etc.—ldem. " It must also be remembered, in reference to the reduction of taxation, that there are services still chargeable upon the balance of the old loans, for which provision must be made upon the consolidated revenue in the near future, if we are to keep Bound finance."— Idem. <>

(y) Not only, however, have the very large majority ot our representatives grossly betrayed trust by permitting borrowing, open flagranb extravagances, and gross maladministration, bub they have been also traitors in nob remedying covert, although equally patent, scandals, to say nothing of allowing gross breaches of faibh such as the continuance of the Public Works Department ; notwithstanding the express promise of the Government to abolish ib in 1888. Thus, Section 46 of the Public Revenues Acb, 1878, allowing Ministers to spend, without check, up to £100,000 annually, as " unauthorised expenditure," remains unrepealed—agross wrong. Indeed, by a return dated the 27th of May last, such expenditure, even in violation ot the law, crept up for the year ended 31st March lasb to £103,482 13s 4d, wibhoubeliciting a murmur even from those who are bo constantly posing as reformers. And the travelling allowances provision of "The Ministers' Salaries and Allowances Act,lßß7,"has been also gravely contravened, as I have already shown. So in respect of the power vested in the Governmenbbythe7thandßfch sections of the 1886 Acb, and by the 7th section of the 18S7 (No. 3) Act", to borrow up to £900,000 on Deficiency Bills—a most unjustifiable and dangerous license. So, also, bhe contingencies scandal—votes passed blindly in lumps. Thus, the contingency sums on bhe 1890-91 estimates amounb to over £100,000, and include such items as £3,000, general contingencies, Colonial Secretary's Department; £3,000, miscellaneous services, Justice Departm3nb ; £2,000, contingencies, Government Insurance Account; £3,000, contingencies, Police ; £10,000, contingencies and materials, Crown Lands and Survey Departments ; £2,000, contingencies, Native Department ; and £6,000, contingencies, conveyance of mails by sea.

So long as such (£IOO,OOO, £900,000, ;£100,000=£1,100,000) marginal powers remain vested in a Ministry, an agreement with thorn to reduce " estimates" by £50,000, or by pecking at tho figures in detail, musb bo a farce — a trick to impose upon electors thab members are reformers, even although of a baby type ; or a delusion of fools, showing the would-be reformers to bo geese. A fair illustration of the farce is the disallowance off the estimates this session, after a debate, of the Rev. H. C. M. Watson's lecturing fees, £150; for it transpired (see Hansard, August 19, p. 88) thab the disallowance will make no difference, as the money had been paid, and the amounb will simply be classed as "unauthorised expenditure"— notwibhstaneling that the limit of "unauthorised expenditure" allowed by law had been already exceeded for the year by £3,482 I3s 4d, So the Dunedin Exhibition vote (£10,000) has been overstepped by £3,261, and the Paris Exhibition vote (£3.000) by £408, and so forbh.

(7i) Bub whab is even, if possible, graver— members, eibher by neglecb or design, allow the accounts to remain in such a bangle that it is only by tho cloaesb abtention of men expert in figures that frauds, juggles, non-redemption of promises, misappropriations for services not provided for, and in excessof votes, useless disbursementsand other extravagances, canbecorrectlygraßped. Indeed, I am assured by an ex- Treasurer, that even the Treasury officials do nob understand them. Perhaps, therefore, I may be pardoned for stating thab ib has takon me—a brained accountant—over two months to grope oub the figures I present. For instances, I defy anyone uninitiated to reconcile the V Land Fund Account," attached to the Financial Statement, 1890, with the tables " A, C, and Q " annexed to the 1890 report of the Crown Lands Department ; or to understand the balance-sheet dated 12th of May, 1890, of "Post office account," showing "profit and loss," Dr. £17,241 16s 6d, unless to conclude thab instead of profit contemplated by the 9th section of "The Public Revenues Act, 1878," there has been a loss.

Under such circumstances, searching investigation should be made for personal thefts, embezzlements, and other like frauds.

The trustees of our lives and fortunes — specially selected as competent, bub (with the rarest exception) übberly incompebent — and also the greab mass of our electors, musb bhus remain hopelessly befogged; and therefore, hoodwinked.

But, unfortunately, not only the cause, bub also the outcome of such conduct, is unmistakeable. For, in addition to the ruin of those in the colony by reason of reduced values and stagnation of business, the immigration returns are mosb significant). Thus, whilsb New Zealand in 1889 had bub an excess of 214 immigranbs over emigrants (in 1888 bhere was a loss of 9,175), Queensland had an excess of 10,926; New South Wales, 20,640; Victoria, 16,164; and even Tasmania, 2,672. And since 1889 people have been even more alive to the situation. For, during the seven months ending 31st July last, there has heen an excess of emigrants over immigrants to the extent of 3,699.

Surely, Mr W. P. Reeves well said in the recent wanb-of-confidence debate: "I do say that the position is sufficiently grave to make the most reckless of mankind consider what steps ought to be taken now." (Hansard, p. 213.) And yet, in view of all this, some electors talk of re-elecbing ! I, full of wonder, can only gasp—Wonperfol !

Bab I must stop—alas ! not from want of scandals, bub for fear of wearying.

(i) There can be no doubb bub that our Treasurers have eibher been incapable financiers or wilful traitors; chosen by and from politicians, the very large majoriby of whom aro even more objecbionablo. For they have ignored the following amongsb obher indispensable canons of sound finance :—(a) " That current (not capital) income be made to cover currenb expendibure; (6) That all dishonesb or extravagant payments be abhorred ; (c) That taxation be detested ; (d) That, when unavoidable, it, in a new country ab leasb, be such as nob to have the effect of precluding the inflow, and forcing the outflow of population and capital, and therefore of crippling labour ; and (c) Thab under all circumsbances its incidence and administration be fair, and its collection withoub friction.

Instead of the foregoing principles, borrowing limited only by the power to borrow, local outlay for the purpose of obtaining political influence, gross extravagance and careless expenditure, and unnecessary, nnfair and excessive taxation levied nob only in the mannermosb calculated to frighten and deter—whafcwe pre-eminently need —men and money, bub most calculated to annihilate the vftue of property, and thereby destroy bhe community, and moreover, collected with such want) of considera%

tion as to cruelly crush, depress and irritate taxpayers—these are the antics which, with brazen effrontery, are set before long-suffer-ing tax-victims as marks of financial genius! —these the pranks which have ruined innumerable people, whom, as parb of the general community, members wero returned, and governments were expressly placed in protect. And let ib not be forgotten thab by reason of its inevitable result— industrial depression—ib is the wageearner, ulbimabely, who especially feels the effecb of such financial mismanagement. Therefore, treasury wisdom is of the utmost consequence to him. And thus ib is of vital importance to him thab the first fruits of adequate retrenchment be tho repeal of the property tax—£355,460 7s lOd; and thab no tax be imposed in its stead. Our financiers have been men who, in addition to their obher public vices, have meb daily emergencies by daily expediencies, leaving the rest to bheir successors. Let me now summarise the lasb and present section of this article :— .

(a) Loans raised, 1887-90, £3,663,796 12s Id, ab a cosb of £225,350 8s lOd.

(6) Further borrowing, even to mceb current expenses or new enormous taxation inevitable next year, unless pledged body of sweeping retrencher3 be returned. (c) Public debt increased since3lsb March, 1887, £3,332,981.

{d) Excess of expendibure beyond income for bhe pasb bhree years, on average, £1,110,993 13s 4d per year. (c) Before the properby tax can be repealed, annual expenditure musb be reduced by ab leasb £1,447,236 IS 2d,

or income, aparb from thab tax, found to thab exfcenb.

{/) Increase of interest and sinking fund paid since 1886-7, £254,726 10s 9d. (<7) Scandalous adminisbrabion of Land Department.

(h) Very large majority of members have nob only grossly betrayed brusb by permitting borrowing, open, flagrant extravagances, and gross {.maladministration, bub have been • also traitors in allowing covert scandals, such as " unauthorised expenditure" abuse, violation of Ministers' Travelling Allowance Stabute, Deficiency Bills license, contingencies, and excess of expenditure over votes.

{i) So by permitting the disgraceful state of the public accounts.

(j) Incapacity or treachery of Treasurers chosen by and from politicians, the very large majority of whom are even more objectionable.

Such are some of the damning facts available, such the absolute necessity for the return only of new men—our wisest menhaving nob only power of will, bub power of won'b—sweeping retrenchers —pledged to act together upon a common platform to obtain immediate relief, by securing primarily financial invigoration and population, then to obtain permanent prosperity, incident to which measures to prevent large land-holdings should, of course, then ba enacted — such the vital need of the firsb step (after constitutional reform) towards achieving financial invigoration, viz., sweeping retrenchment, by precluding the necessity for further borrowing, and by abolishing the property tax ab least. Such, therefore, the demand that bhe second plank in " Tbe Specific Platform " —Constitutional Befprm, Sweeping Bebrenchmenb, Fair Legislation, and Wealth-Production—be— 11.-SWEEPING RETRENCHMENT. The practicability of such retrenchment I have already shown in an article in the " New Zealand Herald " of 19th November, 1888. Hansard of last session to a greab extent confirms my views; especially see speeches byMessienrsSaunders(p. 369), Moss (p. 373), Goldie (p. 396), Fisher (p. 411), Withy (p. 431), and Captain Russell, September 3rd (p. 493). Verily, with reason— NOW SHOULD BE THE WIHTEK OF OUR DISCONTENT. R. Laishley.