The Press. WEDNESDAY, AUGUST 21, 1878.

Press, Volume XXX, Issue 4077, 21 August 1878, Page 2

The Press. WEDNESDAY, AUGUST 21, 1878.

The principle that is supposed to guide any policy of reform in the mode of raising revenue forthe public service is, that as nearly as may be everybody shall pay in proportion to his means. The present Government have lost no opportunity of announcing that principle as the keystone of their fiscal policy. All preceding Ministries, and all former New Zealand Parliaments, have been brought under one sweeping: condemnation for their uniform remjssness in neglecting to place upon the shoulders of the public, burdens proportionate to the advantages they derived from the maintenance of Government in the colony, whether in the protection of life and property, or the additional value conferred upon landed estate by the construction of State railways. No one has ever attempted to dispute the justice of the proposition that the necessary revenue should be obtained upon a fair principle of distribution over different interests. No one has failed to recognise that, when the necessities of the colony demanded an increase to the public income, the required aid must come from property. As we have before pointed out, however, nothing could have been more clear than the intention of the Legislature, fn colonialising the land fund, that a sound finance should be seenred without hastening the dark day of additional taxation. But the Government, having spent the greater part of the recess in striving to excite public indignation on false issues and imaginary facts,. hay<| found themselves driven into a position in which some show of justification of their conduct must be made. The Colonial Treasurer therefore starts the notion, that notwithstanding the determination of the Legislature, it has suddenly become the duty of the Governmenjt to make a public works fund out of any surplus that may appear frdoa year to year. It is scarcely necessary to say that, in the present financial condition of the colony, such a thing as an eppreci&ble surplus of true revenue

over true expenditure is impossible, unless the waste lands yet unsold are forced into the market with indiscriminate haste, and in opposition to all reason and common sense. But by thus putting aside for public works any surplus that may by any accident arise, and thereby creating a corresponding " deficiency, or disposing of a possible surplnSj an excuse is found for imposing, j earlier than would otherwise be necessary, [ a fresh tax. - In no sense does such a proceeding satisfy the promises that hare been made for a re-adjustment of public burdens. How the holders of moderate property can find a source ofsatisfaction in a proposal to put on an unnecessary tax merely because, together with themselves, their wealthier neighbors will have to pay, is not easy to understand.' The principle for which we contend is that direct taxation should be imposed when it is required and not before. That it will soon be required is unquestionable, but that it should be imposed for a political or other purpose, and not solely to support the public burdens, and maintain the revenue and expenditure, in equilibrium is, in a new country like New Zealand, a wholly mischievous proceeding. Whenever the imposition of snch a tax can no longer be escaped, it ought surely to be 'undertaken in a spirit of absolute fairness to all classes of the commnnity, and after the most careful and exhaustive consideration. In the course of discussion on the subject generally, we shall show that the Ministerial proposals are not conceived in any such spirit, nor founded upon au accurate view of what is equitable. From the fact that the Colonial Treasurer applies his reductions only to a partial and, as regards the limited consumer, to a perfectly ineffective, lessening of the duties on tea and sugar, and, an abolition of duties on other articles to the insignificant amount of £19,726, it may be assumed that 3 in the view of the Government, the items on which either a reduction or abandonment is proposed represent the only ones respecting which alteration is necessary to effect a fair change in the incidence of taxation. This assumption is further justified by the fact that £41,586 of duties, which are considered a fit subject for a change from ad valorem to fixed duties, are not abandoned, although they consist almost entirely of necessaries, such as boots and shoes, starch, and similar articles of daily domestic use, minor luxuries greatly used by the working classes, such as preserved fish and sardines, and articles indispensable to the carrying on of industries, ench as nails, and corn and flour sacks. Tea and sugar and grain are the grand delinquents whose existence in the tariff grieves the philanthropic mind of the Government. To them a " free breakfast " table " is the one panacea for all human ills. The shirt worn by a man who partakes of his " free" loaf and parfciallytaxed tea with sugar is still to be taxed —so are his boots and the-clothing generally of his wife and family—whilst the impositions''<• on almost all imported articles of domestic nse are on no account to be got ride of. If he ventures on the consumption of a pint of colonial beer he will have the satisfaction of knowing that with every draught he he is assisting the consolidated fund, whilst, should -he •be disposed to indnlge in the luxury of "dried vegetables,"— whatever they may be —hewill be able to recognise the importance of the fact that in that respect at all events he is an untaxed man. Similar absurdities and anomalies abound in the proposals, nor is it easy to comprehend the condition of mind that could lead to such strange results. It is plain, however, that by adding the £19,726 before-mentioned, to the tea and sugar duties proposed to be remitted —£96,500—we arrive at the estimate of injustice in the incidence of of taxation, which, in the view of the Government, calls for immediate redress. If they had thought more sweeping reductions needful, in the cause of " truth, " justice, and humanity," they might have proposed them; and in the further consideration of the subject it is on their proposals only, and not on vague impressions of what they or someone else might prefer, that a judgment is to be formed of their conduct.'

The resolutions of Mr. Curtis, dealing, irith the constitution of the Legislative Council arid a change in its functions arid powers, will come on for discussion tonight. They are as follow:— (1) That so much of section 33 of the Constitution Act as gires power to the Governor to nominate members o£ the Jjegielative Council, be repealed. (2) That the' number of members constituting the Legislative Council be fixed at one-half of that of the House of Representatives. (3) That whenever vacancies ehall occur, by death, resignation, or otherwise, whereby the number of members is brought below the number fixed by the second resolution, such vacancies ehall be filled from time to time by persona elected by ballot of the House of Representatives. (4) That when any Bill passed hy the House of Representatives has been rejected by" the Legislative Council in two successive sesiions, it shall be competent for the House to require that the Council and House shall ait together, for the further consideration of •uch Bill; .and if a majority of two-thirds of the united "body shall vote in favour of the Bill, the same shall be submitted to the Governor for his assent -on behalf of the Crown. . , (5) That similar provisions shall be made for the case of a BUI passed by the Legislative Council, «nd rejected in two successive sessions by the House of Representatives. (6) That the Government be requested to prepare and introduce, during the present sesMon, a Bill in accordance with the foregoing resolutions. As regards the first point proposed to be dealt with—the constitution of the Council—very different views are held. Some are anxious to see the Upper House an elected one, while perhaps tke majority hold quite the opposite view. The evil results of having the two branches of the Legislature elected directly by popular vote have been so conspicuously illustrated in the case of Victoria, that we can hardly think that any large section in this colony would seek to have the -system -introduced here The - dangerous; consequences winch would result from a conflict between two such representative bodies are too evident to require pointing out at length. If the Upper House were elected, it would, ao representing a certain number of electors, seek to make its power far more palpably felt than would be the case were its members appointed in any other manner. It wonld" not act merely in the direction of modifying and regulating the dominant party in th« Lower House, but it would insist as a representative body, in taking such; an active part in the work of legislation as would be sure to lead to conflicts with the more popular body.- We therefore think it would be most impolitic to seek to make our Council elective. A nominated Chamber, properly constituted, is eminently qualified to act the part required of an Upper House. Its members should be distinguished, for pni-

dence and sagacity, and bo selected on account of their personal character and ability. Were this principle always acted on in the nomination of members to seats in the Legislative Council, all would be welL But it presupposes a loyal deeire on the part of the Government of the day to keep this high standard up, and unforfortunately some recent appointments hardly justify the belief that the Government have kept that aim before them. The opinions of the Premier on the question are well known, and it would almost appear as if he wished to make the Council odious in public estimation. A few more appointments of the character referred to would tend much to bring the Upper House into contempt, and effectually destroy ita usefulness. We are averse, as a rule, to changes which have not been demanded by the people at large, and there has been no outcry throughout tho colony for a reform of the Legislative Conncil. Had the Government shown a proper sense of their responsibility in the nominations which they have made, we should have urged letting well alone. But it is painfully evident that such lias not been the case. The question therefore arises what remedy can be provided which will protect the second branch of the legislature against the danger to which it is liable, without going to the opposite extreme of popular election. The plan proposed by Mr. Curtis, or some modification of it, would meet the difficulty. It would take the power of nomination out of the hands ol Ministers, and place it in those of the House of Representatives. It may be said that this shifting of responsibility will havo little or no effect in guarding the Council against unsuitable appointments —that a Government commanding a majority in the House o\ Representatives will always be able to secure the election of their nominee. We do not think so. A Ministry may often be in a position tc command a majority on all qnestions oi which their existence depends, and yel not be able in minor matters to secure implicit obedience; and we can hardlj conceive of a Government stakiug theii existence on the return of a nominee oi their own to the Upper House. Th< Grey Government, for instance, no mat ter how much they admired the manj sterling qualities of the Honorable Johr Martin, would not have been likely t< have made a Ministerial question of hii election bad the appointment rested witl the popular Chamber. Besides, it is pro posed to make the election by ballot which would still further have the offec of preventing , the retnrn of any but mci of proved ability, and special fitness fo; tho position. On the whole, then, we approve of thi mode of appointing , members to thi Upper House proposed by Mr. Curtie Wβ believe it would have the effec of giving the Council a better am stronger position with the general public and would secure the return of expe rienced and trustworthy men. Such i method of appointment would be in keep ing , with the popular character of oil institutions. It would do away with an; feeling of antagonism which may exist ii some minds against the Upper House That Chamber, " emanating from popula " choice only. once removed," would re tain and increase the influence which i at present exercises in the country. More over, in the course of time, it would b filled by men who, in the opinion of th< people's representatives, are well qualifie< to aid them in deliberating upon the grea public qnestions of the day—men whe from a variety of circumstances, wer unable to obtain seats in the popnla Chamber, but who were nevertheles recognised as possessing capabilities whicl would be of great value if employed ii the service of .the colony.