PRIME MINISTER'S SPEECH.

Clutha Leader, Volume XXXVIII, Issue 91, 4 June 1912, Page 7

PRIME MINISTER'S SPEECH.

sUR PLUS OF £807,276. FUTURE LEGISLATION. OPUNAKE, May 30. ti,« Prime Minister (Hon. T. Mac--1 l L\ addressed a meeting numbering * t 500 at Opunake to-night, and ccorded a very cordial reception! ?* "oeech lasted for about two hours. 8 FINANCE.

•«, p r ; mo Minister. said that the •« nil result of last year was very f ctorv, and, when compared with • *f the previous year, was an inof the soundness and con*j orosuerity of tne Dominion. for the year totalled £ll,iae -a which was a record, the preJ* bit being last year's £lO 297,STtbe increase uus being over £<3o, The principal increases were: * jc2si,olKi; railway, £182,000;. as 5 £123,01 X): and land and income !t * ffflOOo' llle revenue exceeded fioe.uhtu.-e by. £',20,000, and the his for the year just ended total- , j * SrKd to the Public Works Fund S*EUtu» for the year totalled tin'llo 000, including post and teleffi?B,soo, railways £2,441,700, Ktion £1.012,000, .and defence SnnO Transactions relating to ffiwrks last year totalled £2,350,2>cl«<U«g receipts of loan money ■m 000 and transfer from Consolidatj Kund £500,000. Expenditure on iTworks amounted to Tether charges £67,000, leaving a 1 balance of £82,580 at the end of *r Tear At the same time it must be lembe'red that loan money amount•to £1,050,000 was not raised, so ♦Mt available public works money to Zt the current year with was £l,!«()00 which, with the amount transferable 'from the Consolidated Fund, Lid gi ve tlie Government about £2,gjOOO for public works for the cur«jt ™ar. ft " as not considered adto raise the loan money authorised until it was needed, thus avoiding wring interest on idle money; but, tob this loan ha duot "been raised, jt M s satisfactory to know that arjugemeuts had been so made that nys and means had been provided for Util October. It might, however, lie aecessary to go upon the money market ssv if the market were favorable to ittire necessary funds to carry on till tie end of the financial year. SIGNS OF PROSPERITY.

:'• During the Liberal regime £8,530,SQQ had been transferreu from revenue jo Public Works Fund. Notwithstanding the demands on the revenue for the pjmeut of widows' pensions, increasil cost of defence, and old age penIbs, the finding of "money for these Jjrposes had been done without taxa foil. This, in view of remissions in (ration (customs alone exceeding six pons), pointed to tho flourishing plition of the Dominion. Though Enks were, lie thought, right in sound--5 a note of caution; but it was genii? recognised that the stringency of $e money market was due to causes jklly unconnected with the Domin bl. All the figures indicated 'interill prosperity. ADVANCES TO SETTLERS. ) Dealing with the advances to setlyers, Mr Mackenzie said that they had ken proved to be sound in principle nd a boon to the country. In no part «f the world could local bodies obtain ■one? on such favorable terms as "n lew Zealand, where loans were from le Government. For some years to Sine interest would rise, and higher liter of interest would prevail throughit the world. i LAND AND INCOME TAX.

;In connection with Land and Intone Tax Mr Mackenzie mentioned Slit the revenue collected from this mrce was £1,095,950. The Governtent considered that the present land ta exemption of £SOO might be inffiased with advantage to settlers with Mies dependent upon them. They fcrtlier contemplated resisting the Hies applicable to graduated land tax, ft» with a view of casting the burden rf taxation on the shoulders of those lest able to pay, also with the distinct w» of rendering more land available 6t close settlement. Loss of revenue from enlargement of these clauses of to Act would be provided for by an urease in the higher grades of the Wfeated tax. He thought that in % Zealand an allowance of £SO ■"At be made in respect to each child "tolly defendent on the taxpayer for «pport.

CROWN LANDS. tie Prime Minister next touched on to survey and selection of Crown ™k For the five years' period end March last. 8134 persons had selectman area of 2,640,000 acres. For the rive years period the figures J* 8416 persons and 2,275,000 acres. "* average holdings of the former »ei«324 acres, and on the latter 270. * average rate of selection during * Past five years' period had been ?8,000 acres per year. This was very Wwactory, and showed that the Gov"""feiit was alive to the necessity of J°getically preparing the Crown esf 9 '* the people.' The expansion of >* dairying industry and improved rWs and conditions in cultivating J™ "bowed that the time had arrived the law and reduce or re- £* occupation of land to the follow- ■? 'units: 400 acres of first-class lands, *«W of second, or 2500 of third, the of the land to become the deterJj« factor in subdividing. The r% of the land should be the deling factor in deciding the size an allotment for a family. DISPOSAL OF LANDS. jj«& regard to lands disposed of in jC 6 % the Crown, he said that when jv* a lands were subdivided and placj, B P°ii the market no man should be l We « to occupy more fihan one holdJ™, allotments would be made so i/J «nablo each to be sufficient to (W a family. The reduction of j[n™ould be made to apply to cases lands sold in freehold, as to jFJ* transfers tod sales, so that all of Crown lands, the of which waa now granted,

ought to make a declaration that they were not holding land above the prescribed limit. Tne present law prohibiting anyone from holding 640 acres of first-class land or from obtaining further land subject to the" Land Act should be altered to allow of the maximum being reduced to 400 acres. Legislation would be introduced to provide that no person should be able to inherit on the death of the owner of land more than a certain area of first-class land or proportionate areas of other lands. If this were not provided for by the testator, it would be provided that the laud should, upon payment of the valuation fixed by arbitration in the usual manner, become Crown land. LANDS FOR SETTLEMENT.

Regarding land for settlement, he said that larger purchases under the Land for Settlement Act had been made during the past year than for some years previously. Under the present provisions of tne Land for Settlements Act it had been found than owners had so increased the unimproved values of their properties as to make it impossible to acquire these compulsorily. *Tke Government, therefore; in tended to provide for the compulsory taking of lands under the- provision originally applying, prior to the Land for Settlement Act of 1908. . AGRICULTURAL INDUSTRIES.

Dealing with agricultural industries, ■which he considered were the first rer quirement of New Zealand, Mr Macken-z.-e said that it hud been one of the chief planks in the Liberal Party'* platform co foster them in every legitimate manner, and so successful had been the measures taken to this end, that New Zealand led the world in several matters making for successful prosecution of rural industries. Experimental farms had now passed beyond the development stages and were well-equipped centres for experimental and demonstrative work. They were now showing a profit, which last year reached £4600. He would endeavor to establish! farm trailing 'schools, in the Dominion, which, besides giving farmers' sons a soundtraining in the three R's, would combine with it good, practical knowledge of cultivating, manuring and farm management, together with a knowledge of animal and plant disease. A supply of better breeding stock for farmers was urgently needed, especially in regard to milk. A record was kept of bulls for milk producers, this form of breeding would be fostered at'the chief i xperimental farms, so that —farmers would ere long be able cheaply to purchase good stock for dairy experiments. Demonstrations in the better feeding of stock were being encouraged, with improved methods of forage and crop production at experimental farms, and no less than 400 farmers were working in conjunction with the Department to provide practical lessons in improved methods. DEFENCE. Referring to defence, Mr Mackenzie 9aid that it was a matter of gratification that the registration of Territorials assembling on parade grounds and attendance in camps had been so successful. The cost of the system, however, was much greater than was expected, and exceeded Lord Kitchener's estimate. No more than the amoiuut recommended 'by him should be spent; but, at the same time, the efficiency of the forces must be maintained, and the Government would do everything to see that nothing was done to retard the progress of the scheme under the present capaible commandant. THE CIVIL SERVICE. Referring to the Civil Service Commission, Mr Mackenzie said that this had been set up not as a reflection on past Governments, but to inquire whether the Civil Service was being carried on on business lines such as the shareholders of private companies would expect. It would endeavor to simplify the procedure, prevent duplication, secure recognition of merit, and quicken the despatch of business by removing unnecessary formality and delay. The Commissioners were free from all political color, and were men standing high in the financial, actuarial and business world. Simplification of the ' public accounts would also be dealt , with. x RAILWAYS.

The Prime Minister next referred to railways, which, he said, showed a substantial increase both in. traffic carried and revenue earned. There had been an increase of 600,000 in passengers, 15,000 tons in goods, and £182,327 in revenue. The revenue for the year ending March, 1911, was £3,494,182, and for this year £3,676,509. The earnings exceeded the estimated revenue by £151,909 and were equal to £3 19s per cent, of the capital invested. The railways should be used to further closer settlement, and arrangements were being made to improve suburban train services. About 1500 miles of old rails had been relaid with heavy rails and additional sleepers, this costing £225,000, which was charged to working expenses. The Liberal Government had granted concessions as follows in rate's and charges: Additional train services, costing £885,000, and in* creased pay to railway staff, £870,000; totalling £2,755,000. Two self-propelled oil motor cars were being built in the railway workshops, and these would be experimented with. A traffic superintendent had been appointed for each island, and half a million had been authorised for improvement of railway wagons. There had been no importations of railway wagons since 1901. The public could look forward to having at an early date a thoroughly up-to-date railway service controlled by able men. The question would be considered of constructing light lines in otherwise inaccessible districts. . CUSTOMS.

In twenty years concessions totalling £8,300,000 had been made in Customs, and of this £2,234,000 had been made in the las* five years. The preferential scheme had had the desired effect, and in the hoot trade alone the percentage of British, imported goods had risen from 55 to 95 per cent., while the importation of foreign candles had entirely disappeared. LABOR. B«f eniaoft to iie lahor the

Prime Minister said that indications were favorable for another good year. DuringTrhe, year 57.50 mem had been assisted by the Department, making a total since its inception of 90,531. The -following Bills~were under consideration by the Government": A Shearers' Accommodation Bill, which, though not providing any better accommodation, would make the procedure in dealing with the matter more expeditious; a Sawmill Workers' Accommodation Bill, providing for accommodation for workers away from mills in the bush; a Scaffolding Inspection Act, enlarging the scope of he Act and providing for places where even no scaffolding was erected; an Industrial Conciliation and Arbitration Bill, with a view to making this Act more practicable. The Government proposed to arrange for the immigration of domestic servants. The Government was considering the question of social insurance. NATIONAL PROVIDENT FUND.

In connection with the National Provident Fund the Government was now assisting the Board by sending out a lecturer to bring the scheme before the workers in factories, workshops, etc., and satisfactory results were being obtained. The Government considered that friendly societies were the most deserving organisations for helping the workers during sickness and were entitled to some help, and the subvention for them would, it experience elsewhere be repeated, result in the opening of the benefits and consequent increase in membership. The proposed extension of the National Provident Fund Act would be based broadly on the State paying one-halt of the weekly allowances. This would place friendly societies on a sounder financial footing and would increase their contribution rate without falling on increased payments from members, and would enable societies to lower contributions or offer higher benefits. The National Provident Board would also be given power to allow local authorities, employers, etc., to insuro their employees in the fund at special terms. Where local authorities or employers themselves paid portion of the contributions they would be empowered to deduct contributions from wages under ceretain conditions, if directly 300,000 persons, including families and dependents, should be benefited by this extension.

OLD AGE PENSIONS. In old age pensions last year £416,530 was paid out to 15,984 white persons and 665 Maoris, this being an increase of 629 on the figures for the previous year. The average pension was £25. Gross payments to date totalled £355,6CO, while the amount in credit to the Old Age Pension Fund from endowments and land revenue was £55,610.

PREFERENTIAL VOTING. The Prime Minister said that the the Second Ballot Act and would endeavor to substitute a preferential voting scheme, electors to state the order of their preference beside the name of the. candidates for election. LOCAL GOVERNMENT.

Regarding local government, Mr Mackenzie said that the recent conference had been most valuable and showed that there was need for (1) the abolition of a number of superfluous local bodies, (2) rearrangement of county boundaries, (3) review of the system and payment of grants for roads and bridges.

HOSPITALS AND NURSING. In collection with mental hospitals the Government proposed to establish rest-houses into which persons suffering from what might bo termed temporary mental aberration might be placed. A series of nursing stations for Maoris had been established. St. Helens Hospitals were proving a great success in the cities, especially in training midwives, who were being offered special encouragement to reside in the backblocks for the benefit of the wives of settlers. STATE FIRE INSURANCE.

State fire insurance had done good work during the past seven years. He estimated that over four millions had l>een paid in New Zealand in fire premiums, and of this the State office had received £205,000. Rates had been reduced 10 per cent, on business risks and 33 1-3 per cent, on offices and dwellings, and higher ratings had been entirely abolished. The reductions, he estimated, averaged 25 per cent, all round, so the saving to the people could he estimated at £1,250,000, which could be regarded as a reduction in taxation.

TOURIST DEPARTMENT. The Tourist Department had had a record vear. llotorua takings had increased "from £13,879 to £15,112, Waitomo from £1491 to £2422, and Hanuier from £1565 to £2166. The passenger booking system had 'proved a success, 6000 tours being booked. The takings from these totalled £32,245, resulting in a commission of £1551. The increase in business at the agencies totalled £B2OO and tliese agencies would soon probably become self-supporting.

POST AND TELEGRAPH. Mr Mackenzie paid a tribute to Sir Joseph Ward's work in improving the Post and Telegraph Department, stating that Sir Joseph Ward had gained world-wide renown as a postal reformer. The Department was now in a state of the highest possible efficiency. The Government was making every effort to encourage the installation of country telephones and would not attempt to make a profit out of these but simply to cover the cost and interest. Country settlers would,, as far as telephones were concerned, receive the Government's first consideration but cities would*not be neglected. The Department had under consideration a reduction in parcel post rates, and it was hoped that soon fish and fruit would be sent by parcel post. A scheme would be inaugurated whereby anyone could go to any post office and order a case of apples, pears, etc., from the most convenient fruit-growing district. The Post Office and Railway Departments would in this matter act together. The rural mail service generally would be pushed on, and motor cars would be used as far as possible. Special rates would probably Bhortly be introduced for carrying books to and from otflintry libraries. New machinery had been devised locally for printing telegraph forma and folding received telegrams,

and this'should materially expedite telegraph business. A domestic money order system Jiad been inaugurated and this should prove of great benefit. The savings bank closed last year with £15,543,186 at the credit of depositors, this being an increase of £6,881,164' in six years. The revenue of the Post and Telegraph Department had risen from £684,878 to in six vears.

THE) .GENERAL AIM. In conclusion the Prime Minister said that the Government was endeavoring to meet, the problems of the hour. "Our party stands for progress, decisive and rational progress, and for liberty, genuine and literal liberty. We have no programme promising a political paradise lor a people without effort, economy and industry." The aim, he said, Wv<uld be largely administrative, keeping steadily before them, the necessity for legislative economies whenever conditions required them. Mr Mackenzie was loudly applauded on resuming his seat. The following motion was passed amid hearty cheering: "This meeting tenders its very hearty vote of thanks to the Prime Minister for his instructive and statesmanlike speech, and expresses entire confidence in the administration of which he is the head, and trusts that the Dominion will give the Administration air opportunity of giving effect to its policy." Subsequently a social in the Minister's honor was held.