The Press. FRIDAY, SEPTEMBER 22, 1893. THE PUBLIC WORKS STATEMENT.

Press, Volume L, Issue 8594, 22 September 1893, Page 4

The Press. FRIDAY, SEPTEMBER 22, 1893. THE PUBLIC WORKS STATEMENT.

The statement laid on the table yesterday completely justifies all that has been said, during tbe last five or six weeks, as to the necessity of having all the Ministerial financial measures before members at an early stage. We are , now within a few days of the close of the session, aud members are preparing to return to their homes. Yet if tbe interests of the colony are to be properly looked after, tbe proposals submitted should be fully and carefully considered. There is no chance of this now being done. Eveu if the minority; attempt to do their duty, the usual taotics will be pursued. The estimates will be forced through, perhaps at an all night sitting, the majority voting blindly at the command of tho party whip. Yet it is certainly of very great importance that the couutry, on the eve of a general election, should understand what this non - borrowing Ministry really are doiug. In the first place, they have been living ou the proceeds of tho careful finance of their predecessors. But at the end of March the colony had seen the last of the loan money. The Public Works Fund, we may explain, is divided into two parts. No. 1 has to

do with the general works, aud No. 2 represents tbe balance of the North Island Railway loan, which is specially setapartfor that purpose andisnotavailable for general use. Dealing with No. 2 account first, it will be seen that on March 31s. last only £152,943 remained in hand, with liabilities of .645,611. Out qf that amount it is proposed to expend in the course of the current financial year £101,, 600, so that by March 31_t next a little over .-50,000 is all that will bo left) of that loan. As Sir John Hall remarked in the financial debate, by the time the Auckland and Wellington members have settled their quarrel aa to the route all the money will be gone.

However, it is to Part 1 that we desire to direct the special attention of our readers. On March 31st last the balance in haud was £177,685, against which there were liabilities to the amount of £183,740 outstanding. As a matter of fact then five months ago the whole of the Public Works Fund had been appropriated, together with £6000 more. The liabilities, of have to be revoted and appear in the current appropriations. The position then is this: The colony started the financial year with £177,628 in hand. It is proposed to transfer £250,000 from the Consolidated Fund. Government expect to get £160,000 from releasesinking funds, and £5000 from miscellaneous 'sources. These figures give Ministers £592,685 to deal with during the present year on No, 1 Account, and out of that they ask the * House to appropriate £591,468. By March 31st next, the whole of the money will have been spent or liabilities incurred on account of it. Even that expenditure will consist

largely of money dragged oub of the pockets of the taxpayers, seeing that £250,000 is to be taken from the Consolidated Fund for public works. As for the released sinking fund of £160,000, it is idle to pretend that this is not borrowed money. We admit, of course, that the law allows it to be done, but the fact is not thereby altered. The released sinking fund is money which has been accumulating to pay accruing loans. Instead of paying, off the loans as they mature with the money provided, the colony is renewing the bills and appropriating the money set apart for their payment.

We have seen that, under Part 1, the Government calculate on having at their disposoal £592,685 for the current year, and that they propose to appropriate £591,468. And they call such a proposal " self-reliant." No more deliberate attempt could possibly be made to commit the colony to another loan. Instead of husbanding our resources, instead of leaving a comfortable balance for the future this "self-reliant" Government actually invite the House to appropriate every sixpence they can lay hands on. The Publio Works expenditure has increased in magnitude year by year ever since they took office, and to all appearance the expenditure for the current period will be the highest of the three. The elections are upon us, aud we may safely predict that when the House meets again it will be found that the Government have made full use of the powers given them to spend and appropriate the money. It must be remembered that pare of the fund— £250,000 —is au estimate. It may not be realised. But even if it is, there is no certainty that we are to have a large surplus the following year, or that any released Sinking Funds will be available. The result may be that the Public Works Fund may come suddenly to an end, and the expenditure be as suddenly stopped. This would be "tapering off" with a vengeance. Any prudent Government should take such a possibility into account. When the colony decided on tapering off in 1887 the Government in power gave prompt effect to that decision. The expenditure was reduced year by year, till the self-styled " self-reliant " Ministry entered on office. Since then the expenditure has gradually mounted up. And now, when possibly their tenure of office is neariug its end, they make one final desperate bid for votes. If they fail, others will have to take the finances once more in hand. If they win at tbe elections, they can get out of the difficulty by borrowing.