SPEECH BY PREMIER.

Dominion, Volume 2, Issue 332, 20 October 1908, Page 7

SPEECH BY PREMIER.

i REPLY TO MR. MASSEY,

NEW PARLIAMENT BUILDINCS. THE FINANCIAL POSITION. Cut txlegeath.—spkcial coeieepondskt.) Palmerston North, October 19. The Prime Minister (Sir J. AVard) arrived to-day, and was met by the Mayor and prominent residents of tho town and entertained at luncheon. Subsequently he was taken on a motor trip through tho district. In tho course of conversation with a press representative, Sir Joseph Ward stated tliat on November 2 a two-days' service would be commenced on tho Main Trunk line, it. being considered inadvisable, for the safety of the public, to run during the night. Thiß will mean that a train will leave Auckland in the morning, and stop at some central place on the- Main Trunk line during the night, proceeding next morning. Asked as to when ihe thought a daily service would be running, the Prime Minister ■ expressed the j opinion that it would be inaugurated early in December. Tho-Prime Minister and party proceed tomorrow to I* eliding, where lie will address a public meeting in the evening. On Wednesday morning ho will return from Feilding by motor car, receive several deputations, and, leave for Wellington by the midday train. THE PREMIER'S SPEECH. ' The Prime Minister opened the election 'campaign ae far as Ministerial speeches are concerned at Palmerston North last evening, when "ho addressed a crowded meeting in tho ; Opera House. The Mayor presided, and Lady Ward and the Hon. J. Carroll occupied seats on the platform. Sir Joseph Ward, who was ' very well received and frequently applauded I during his speech, acknowledged the invitation i in .response to which he had come to Palmerstoii, and proceeded to reply to some of the m-ent. criticisms of the Leader of the Opposition and Mr. Jas. Allen. Dealing with the criticisms on the auditing of tho public accounts, the Prime Minister said 'the Audit Department had given the Ward Government a clear certificate for all its' accounts, and he hoped a Bill would lie passed to establish the pro-audit system. Ho was not satisfied with the present Suez mail service, though it was to a great extent appreciated by the mercantile community. Mr. Massey, in his criticisms on the Government land policy, had mis-stated the position. All Crown land was opened on the optional system, and the term of the renewable lease was 06 years, except in the case of lands for settlement estates, where it was 33 years, and in goldfields. The national endowment schemo had not altered the position in regard to tho opportunity of acquiring the freehold, as none of the eight million acrcs of endowment lands had been available for freehold occupation. Taxation. ,

Mr. Massey's proposal to exempt mortgages from taxation would lead to no graduated land tax at all being paid, because every landowner who was not a fool would immediately get a mortgage on his land. Already, there were exemptions in the case of mortgages held by.friendly societies, publio institutions, religious trusts, savings banks, and many others, and there were similar exemptions in regard to income tax. There was persistent misrepresentation regarding taxation. The Opposition completely overlooked tho remissions that had been made upon many articles chiefly used by the people. The rate of Customs duty collected on all merchandise imported, excluding specie, fell from 26.25 per cent, in 1894 to 18.65 in 1907. In other words, the Customs duties on every £100 worth of goods imported were less by nearly £8 per cent, in 1907 than in 1894. Th« ,ja£e pf duty collected on all dutiable imports excluding specie in 1894 was 38.18 per cent., iand in 1907 it was 30.28 per cent. No increase of taxation had been placed on the Statute Book for many years by tho Government', excepting the increase in the graduated land tax. The increase in the total of the Customs revenue was not duo to increased taxation, but to the prosperous condition of trade. The greater the trade the larger tho Customs revenue, 'yet the Opposition deliberately converted this into what they termed "tho increased taxation of the Government." It was a monstrous doctrine that they urged, and absolutely unjustifiable, and certainly not politically honest.

Parliament Buildings

Sir Joseph continued: "The criticism of tho Leader of the Opposition regarding the Parliamentary Buildings scheme is not only disi ingenious, but it is absolutely unfair. The Government have not only made no such proposal as Mr. Massey indicated of an expenditure of half a million for a building, scheme at Wellington, but never had at any time contemplated anything of tho sort, nor do tho estimates of the architect bear out this exaggerated statement. The destruction of the buildings by fire was a regrettable incident,- but the fact remains that a rei erection must take place. ■ The estimated cost of a now Parliamentary Building upon tlie new site is £ISO,OOO. The Government suggested that tho half of this should be expended, and that the present Government Hou66 : should be used in connection with it for a period of years. The re-erection of Parliamentary Buildings upon the old Parliament site, using tho present building, was ■ estimated'by the architect to cost £165,000, and the estimate for the re-erection of a new Government House £25,000. So that, assuming we were to erect tho new buildings entirely upon tho Government House site, plus'the cost of the Governor's residence, tho cost would bo £205,000. In addition, the cost of new Government Buildings, which the 'Parliamentary fire has nothing whatever to ,do with, but which are required owing to the ; growth; of public business of the couutry for immediate purposes was limited to £20,000 'so that the expenditure for tho three buildings, assuming that tho whole of the Parlalri.ent Buildings were erected at once upon -the Government House site, means a total sum of £225,000. Tlie Leader of tho Opposition, however, forgot to state that under the Government's proposal this would enable tlm block of land upon which tho Government .buildings stands to be made uso of by degrees for leasing for business purposes, and tha!t the valuo of the block without any buildings is £264,000, which at a low estimate would procure £18,400 rental per annum. It was perfectly well understood that the Government buildings site could not ba utilised at once, but supposing tlie Govern-ment-had proposed to spend £300,000, which wo did not, upon a' building programme which was forced upon us by the fire, tlie rentals would amount to over £6000 per annum more than the interest upon the total cost of £300,000, and which from tho outset I proposed should bo set aside as a sinking fund to repay the total cost of the erection of Parliament Buildings, a new Government house, and in addition Government departmental buildings that from time to time would be required. So that tho cost and the attitude attributed to tlie Government by the Leader of the Opposition is an exaggerated one. I have also noticed in the press report that Mr. Massey at Pukekoho stated that £5000 would bo required for a now site to erect tlie Governor's resideuco upon. This is absolutely incorrect. As a matter of fact, wo have two separate reserves upon which the new Goverenment House can be built that will not cost anything at all. I think it is to bo regretted in a matter of this sort hat there should bo a wrong impression convoyed, for in this, as well as in all other undertakings, we have not acted hastily. Wo are as anxious to be economical in the question of oxpendituro over tho re-erection of :'tho buildings as tho Leader of tho.Opposition or any other member of tho House is. The Government does not propose to do anything rasli or hasty, and it will ho found when wo have completed this work that wo will carry it out carefully and on practical and commonsenso lines. I would like to acknowledge the good work Mr. Campbell, the Government Architect, has done in connection with this important matter." The "Gag" Clause. In defence of tho "gag" clause of the Socond Ballot Bill, the Prime Minister stated that zsa auanborof tJie-ftcssnunent had tmsr been

antagonistic to the press or tried to gag the press or'tho public. The proposal referred to was mado honestly because they believed that after candidates had fought tho election up to the first ballot, and had been fully and freely criticised, something of the kind was needed for. the sako of .fair play, because in some electorates the candidates could not get all around .the .district between tho lots, and, therefore, tho Government thought the candidates should not bo attacked in tho press when they could not reply. (Applause.) However, that clause had been struck out, and tho Second Ballot Act as it stood would secure majority representation. Agriculture and the Tariff. The ~ statement macro uinii agriculture was not helped • under Customs tar- . iff was absolutely contrary to fact. Agricultural machines and agricultural implements .were admitted free, aJid the va-luo of the total annual importation was £112,898, moreover, the farming industry was protected f.rom : outsido competition to an enormous extent.' Finance. " The Prime Minister reviewed the financial position on the lines of his recent statements in tho House. He said that Mr. Allen had made a statement in which he accounted as an extraordinary fact that the appropriation for 1908-9 amounted' to £2,597,506, while the ways and means were £2,594,363, showing a deficiency of £3,143. The real position was that Mr. Allen overlooked the fact that ways" and means would-be added to by the sum of £65,000 obtained under the Manawatu Railway Purchase Act, and therefore, instead of a deficiency of £3143 there would be a credit balance of £61,857. In regard to the Dunedin Railway Station the critics , had given the cost as double what it really was by 'adding tho cost of sidings. It was as if they had built a new station at Palmereton (great applause), doubled the line to Longburri, and then people had' put down the wholo expenditure to the new station. Consolidated Fund. "The result of tho first six months of the year shows that the revenue from all sources is coming in in a most satisfactory manner, continued the Prime Minister. "I believe myself that'the estimate made in tho budget will be fully realised. I calculate the result -will be approximately as follows: —Wo commenced the year with £767,849, our revenue ' for that year ■ should be about £8,985,000. This gives a total of £9,752,849. Our expenditure, ' including the supplementary, appropriations, is set down at £8,878,346, leaving a gross 'surplus of £874,500. From this we must further deduct the interest on our new loa-ns, which is likely to come, to charge for the current year, say £25,000. That reduced it to £849,500, and the contribution for the Public Works Fund of £800,000 will leave' a net surplus of £49,500. I have not included the revenue to he derived from tile acquisition of the Manawatu Railway, as 'the expenditure, in respect thereof will cover this. The revenue for the 'twelve months ending September 30 shows an increase of £310,473 over the same period of, last ~ year. The debt was also dealt with by the Prime Minister. He claimed that most of the nine millions sterling of the debt was reproductive, and stated that since 1891 the average rate of interest had been reduced from £4 1 10s. 3d. to £3 14s. 7d. per cent. He had within last few days given authority for further moneys to be made available for advances to settlers and advances to worker's. - , What the Opposition Says. "Let me tell you what the Opposition members say," continued Sir Joseph. "Thoy cry out against lavish expenditure, and vote for all the expenditure suggested ■ in the Public Works Statement and ask for moro. They cry out 'too much borrowing,' and vote for every loan Bill.' They cry out for reduction in expenditure and ask for new railways in their own districts. They cry out that'they want, to see good finance, and .when the' - Government pays off £300,000 of floating debt out of ordinary revenue they do not - say: a word -of encouragement or approval. They. cry.out that they want improved audit system, and when the Government proposed the post .audit, by' which every item would he laid 1 on tho' table of the House they still' found fault. They cry out that the Government propose to spend £500,000 on a building programme in Wellington, though this is absolutely contrary to fact and they know. it ; but still adhered to a statement that was wild exaggeration by over 100 per cent. They cry out that too much money was expended ; on buildings, and asked for new buildings in their own towns or districts. They cry out that they want roads in the back-blocks, hut When the Government proposed to spend £1,000,000 in four years ,they say they are. . very pleased, but condemn, as Mr. Allen does, the additional £250,000 to be raised this year. They cry out had administration, and do not give a single case of where it occurs. They cry out that the Government is opposed to the farmers; though the Opposition did their utmost to kill the cneap money scheme which has been invaluable to our-settlers. (Applause.). They cry out against the - Government land policy though under it an additional 100,000 souis have been placed on the land.- They cry

out against taxation, though under it our people. get free education, free old age pensions, free text books, cheap money for farmers, and a service of police which in England is charged upon local rates. - They cry out that the country is going to the dogs, and expect, by preaching such a doc-

trine, to improve, its position. They cryout that the Government railways policy, by which concessions are given to the people assisting the farmers and every other class, is unsound, but they do not say what they would substitute, whether increased goods and passenger rates or' reduction of train services and a, diminished staff, .though one or other or both .would be necessary." The Dairy Regulations.

He would say a word or two about the dairy regulations. (Cries of "Ah, ah," and laughter.) It was the desire of the Government to help the dairy farmers, and the greatly improved position of the industry was due to a great measure to the Government grading system and other assistance given by the Agricultural Department. The Government had always been trying to help the farmers to improvo the quality of their produce, and. thus get better prices. The new regulations would not be gazetted until next July, and would not come into force until the September following. The Government did not value the registration fes, and was prepared to reduce it from 10s. to 55., and the dairyman would get a good deal for it. No dairyman would be compelled to pull down any of his buildings and erect now ones. , The Government did not want to do the slightest injustice -to anyone, but they wanted to help the farmers to help themselves, and to get betiir and more regular' prices for their produce in good and bad seasons. Wireless Telegraphy. After giving particulars of the increased business and reduced rates of tho Post and Telegraph services, the Prima Minister said he hoped before the'en dof next year to have established a system of wireless telegraphy connecting New Zealand with' the outlying islands in tho Pacific —tho Auckland and Chatham Islands —and then he should expect all our passengors steamers to bo similarly equipped. • Railway Staff. Regarding the railway staff, in 1891 tho number of men employed was 4523, to-day the number was 12,338. Of the men employed in 1891 in tho first division, not more than 200 received salaries abovo £200 per annum. To-day there would be (excluding the chief officers who hold administrative positions in the Department). 21 in rpcoipt of £370 to £400 per annum, 42 receiving from £315 to £355 per annum, 83 receiving from £260 to £300, 125 receiving from £240 to £255 per annum, 247 receiving from £210 to £220, and 638 receiving from £120 to £190 per annum, and who will in duo course work up to tho maximum of tho class of £200 per annum, and afterwards progress into tho higher classes according to suitability and merit as vacancies occur. Tho Government was anxious to givo its employees as good conditions and as fair remuneration as possible. Native Land Commission.

The Native Land Commission had. dealt with a million acres and would report on an additional 600,000 during the next six weeks. Besides this, the Native Minister had dealt with over a million aires for settlement, and

ho, thereforo, submitted that the Government was making progress in tho opening up of Native lands for settlement.

industrial Arbitration. It was of-.immense importance that tho condition between omployor and employee should bo on a basis of fairness and justico, and tho spirit, that had been shown by somo in looking on capital as thoir natural enemy was deoply to be regretted. Tho-important alterations that had been made in tho industrial arbitration law made it more of a system of conciliation than it had ever been before. It would be most regrettable if we had to revert to the old system of settling industrial disputes by means of strikes instead of by reason, and he would earnestly say to all classes that he hoped the improved law would enable all differences to be settled in a spirit of conciliation. (Hear, hear.) -Tho amendment of the Workers' Compensation Act had widened its scopo and defined more clearly the position of employer and employed. Tho uncertainty that had existed before had now been removed without injustice to anyone, and-lie looked forward to good results from tho operation of tho Act. Other Matters. The Prime Minister reviewed tho benefits conferred by the Government upon tho workers through the tariff, the land laws, free education, Stat'o insurance, State coal, and railway concessions. The new amending Actto the old'age'pensions system would lead to an enlarged "expenditure during tho next six months, as it had considerably widened the scope of- the system. The Land Settlement Finance Bill was also explained, the Prima Minister' stating that he was prepared ■to - reduce the minimum number of porsons who may form an association under its provisions from ten to five. He also outlined the scheme' of _ the national provident fund'as already-published, and declared that the scheme-was absolutely sound, having been examined by ah actuary in every lino. Ho hoped it would become law next session. He wished also to do something to improve our system of local government by way of consolidation of loans, simplification of management, and removing of ' several anomalies, The rates • of interest now being paid by the local bodies showed that consolidation of loans and. assured finance were greatly needed.. He thought they-must _ make up their minds to have • less new legislation in the future than in the past. (Applause.) Parliament, should devote itself more-to administration and to -the settlement of tho land' and development of its resources. In 'conclusion- the Prime Minister said ho appealed .with confidence to tho people, who were not ungrateful, and would, ho felt suro, enable the Government to do still more for the improvement of the country and to make it better for tho present and future generations. (Prolonged applause.) A vote of thanks to the Prime Minister for his address, and confidence in the Government, was carried by acclamation.