PUBLIC EXPENDITURE IN NEW ZEALAND.

Press, Volume LXV, Issue 13467, 6 July 1909, Page 7

PUBLIC EXPENDITURE IN NEW ZEALAND.

ANOTHER LOAN OR MORE TAXATION.

IMPORTANT STATEMENT BY THE j HON. J- A. MILLAR. \ (SPECIAL TO "THB PRESS.") WELLINGTON, July 5. What is probably the most important Ministerial statement that has been made in New Zealand for many year* came from the Hon. J. A. Millar, Acting .Minister of Finance and. Labour, at a deputation regarding this prevailing distress this afternoon. The deputation showed clearly that the distress, is very real and widespread. The Mayor said* there were a large number of people who were in a pitiable state of aistress, and every day ihe condition became worse. The City Council was doing all it could, and ho believed a fair amount could be got by public subscription, but all they could get would not go far, and there wero three months of winter yet to go. The distress was very real and very wiuespread. ~ , , Mr R. A. Wright, M.P., said that retrenchment had been going on in all directions, even in private firms, and ho believed they could find 2000 men out of work in the city. The secretary of the Carpenters' and Joiners* Union stated tnat only this morning sixty men called upon him and asked for employment. If the Government House, tor instance, was pushed on, most ot the men would be employed. Ono of the men who came to nim for work had a wife and ten children. Many wero losing the properties for which they had save_ up to purchase. Mr D. McLaren, M.P., emphasised the nature of the prevailing distress. The trouble, ho said, was not local, but was national. His office had been niled all tho morning with people looking for work, and 6ome of them had come from as far afield as Wanganui. Ho objected to the present immigration of some so-called agricultural labourers and others, which, under tho circumstances, was simply cruel. Mr E. Newman, M.P-, said they would not find the cure for tho present, distress in charity; tho solution of the difficulty would be the settlement of tho large areas of unoccupied lands that existed in the North Island. The subdividing and roading of theso lands j would employ a considerable number of men. The question of the nativo titles I could be settled afterwards.

The President of the Trades and Labour Council said thero was dir© dis- j tress, not only in Wellington, but throughout the Dominion. i Mr Ballinger said the whole trouble was the want of confidence; people wore afraid to spend money. A member of the deputation—AYe want capital. The Hon. Mr Millar gave a sympathetic reply, and said tho Government would do the best they could. H<> seized the opportunity to indulge it. some straight talk about borrowing for public works expenditure, etc. At the outset, he remarked that they were face to face with a very tough problem. Last year £30,000 out of revenue had been used for public works; this year there would be very little money, if any, from revenue for public works. The balance at tho credit of tho public Works Fund at the end of tho year was £400,000, and the Government had authority to borrow one and a quarter million. A quarter of a million of the loan would be for rolling-stock, so that there Would be only £1,400,000 for public works for the current.year. W© had been spending at th© rat© of £1,400,000 per annum upon publio works, but how, he asked, could the country continue to spend at th© rate of £1,400,000 per annum when they had ways and means of only £1,400,000 P It was absolutely impossible. In regard to railway works, he said the Government could do no moro than they were doing. They had not got the money to do more. The co-oper-ative labourers cost £060,000 in wages alone last year; there were over SOCK) of them, and they were adding. 500 more to the list to relieve th© presewt distress. Tho position was euoh that the Government would either have to ask for leavo to borrow more money (which would not last long) or they would have to increase taxation. Last year the Public Debt increased by four millions, and it would seem as if the country could not go on spending two end a half millions a year without increased taxation, for they had been borrowing more rapidly than was justified by th© increase in population. Parliament would have to deal with the matter next session. It was absolutely impossible for the Government, with the means at their disposal, to find work for all the men unemployed, an u ' the local 'bodies would havo to do their share.

'Mr Luke. M.P.: You ought to stop the immigration of skilled workmen.

Mr Millar: I don't think you will be troubled with many more. I don't want to say anything more at present. Another Member: You should ease th© conditions for obtaining money from the Government lending departments v

Mr Millar: Thoy are doing all they can with the money at their disposal. The Member: They h_vo shut down pretty tight now. Mr Millar: I suppose the people have taken every penny they could l out of them. ,

At a later stage of his remarks, 3_r Millar said the Government was retrenching wherever possible, and it was clear they could not go on spending money at tho rate they had been sp-juding. He had that day taken out the figures to ascertain ihe number of people who were directly dependent upon the State at tho present time, and ho found they numbered no fewer than 130,000. A Member: One-seventh of tho entire population. In conclusion, Mr Miliar said the Government would do all it could to relievo what they knew was practically a crisis, __veryone was retrenching, and thereby flooding the labour market. Th© Government could find work for 700 men, but beyond that they had not the ways and means. Parliament would have to discuss the question of whether they could continue public works at the old rate; if they did decide to do so it would mean another loan.