LABOUR AND STATE FINANCE.

Press, Volume LXII, Issue 12481, 18 April 1906, Page 2

LABOUR AND STATE FINANCE.

MORE ABOUT THE "SELFRELIANT" POLICY.

THE FRUITS OF BORROWING

J Tho Labour Conference devoted a good daal of time yesterday afternoon to discussing the advantages of a selfreliant and non-borrowing policy. The matter came up in the form of a motion of which notice had been given by tlio Otago Trades and Labour Council. i Mr W. Hood, on its behalf, accoixlf ingly moved:—"That the Government be urged to adopt a eelf-ixlLamt policy, and to cease borrowing except for the tho redemption of loans." He said this I motion had been endorsed by previous j conferences, and he hoped the present i one would do to. The ooiony was ;it pre- ! sent indebted to tine extent of kixi.v i millions, which was equal to £6li (5s lOd I jwr head. It fell very heavily on work- ! ing men wi'-h families, and amongst 1 ouu-r things it discouraged matrimony ; by deterring young men irom assuming family ru>pi;nsi bin ties. He thought wlun tilie Government was a'Jβ to proi claim a surplus of three-quarters of a 1 million, a very little more taxation ! would enable New Zealand to be ab.so- ; Uutely self-reliant. At present it wa» easiirg t'ho cokmy 6ome two niilliui:i; pot annum lor interest, which wa.s a Jicavy burden, and it was a pity tho ooiony fcdwjuld go on 'iiapelefbiy mortgaging itKt'lf u> foreign bondholder*. It might be uske-d how they were going to initiate a policy of nationalisation cf the means of product ion and industries without boriownig, but he would go into that matter at a later stage, when they came to deal with the question, of cup roncy. He woui<l liko to point out, however, in tho meantime, that within a comparatively short time loans to t'iie extent of eleven and a half millions j would fa 111 due, and in about twenty- , ' four yeare time some forty niillkvns of ! loans'woiil'd fait due, and it might cest the- colony a great deal to renew them, particularly if we wont on burying our-s-elvce hi debt. Eventually ail this j miU come out of the pockets ox labour, and our indebtedness had already done > a great deal towards forcing up the ! co.xL of living. Wo were tearing the heair out oi the se>Ll of the colony to pay the interest on the public bt, and unices there was a cessation of borrow- ! Lug it would come vci-y hard on lalwur by-a.nd-by. Tho ookmy could do _wit'iiout borrowing, and was in a position to bo 6!>!f-reliant; then why should it go on being the biggest borrowing colony of the Empire? Mr D. -UcUren (Wellington) seconded the motion, and said that on this issue they wore "up against" both par- j ties in tho House, and he knew of no j one but the Labour Party who advocated this self-reliant policy. Mr A. Rosser (Auckland) moved as an amendment—"That all the words ; after 'borrowing' bo struck out, and the following inserted 'from outside the colony.' " Ho contended that a certain amount of borrowing for public works was unavoidable, and ho thought when money wee required for public purposes it should be obtained locally. Mr A. Collins (Wellington) seconded tho amendment, and expressed the opinion that if any man stood for Parliament and advocated stopping tho North Island Trunk Railway rather than her- > jK>w money to complete it, be would ' find himself at tho bottom of tho poll. Borrowing for reproductive works was nocessiary, and the Government was : perfectly entitled to borrow money i lor such purpose*. Did Mr Hood oppose borrowing money to mako advances to settlers? Members: Yes. Mir Collins: Well, I say there's, borrwving and borrowing. (Laughter.) Continuing, he said if they were j against borrowing they must stop I clamouring for public works. Mr W. H. Hampton (Wellington) favoured the issue of St-ato notes against the credit of tho colony to pro- '■ vide the money for public works, and i had tho North Island Railway been constructed in this way it would havo I been completed long «go for less than j it had cost for interest on the money , already spent upon it.

Mr \V. Westbrook (Hawko'e Bay) considered bcrrowing inevitable if nationalisiation of land, industries, etc, wae to be carried out. Ht.thoughb tlie ooiony had got fair value for money hitherto borrowed and spent 011 mail ways and public works, and he did not believe in restricting the Government to the local money market, for it would bo giving an unfair advantage to capitalist*, in the colony. -Mr Hood admitted that borrowing inside rtho colony was preferable to going abroad for money, but the interest ■had to bo paid all tho same, and while the Government went on borrowing kbour had to go on paying for

The amendment was lost by 12 votos to 3, and tho motion was then put and carried.