WEDNESDAY, OCTOBER 27, 1909. PUBLIC WORKS EXPENDITURE.

Dominion, Volume 3, Issue 648, 27 October 1909, Page 6

WEDNESDAY, OCTOBER 27, 1909. PUBLIC WORKS EXPENDITURE.

No doubt a groat many people in this country have followed the recent course of British politics with intense interest All kinds of fundamental raised aud very vigorously and'exhaustively discussed; and with most of theso issues the New Zealand public ha-s aomo actual concern. But the proceedings of tho British Parliament have had something more than a general interest for New Zealanders—one of the most important of tho Government's measures involves a question which is really a current political topic in this country. This is the Development Fund Bill, which, as we have explained in previous discussions of it in these columns, amounts in effect to the establishment of a Public Works Fund such as we have here It will 'be remembered that in the original Bill the grants for public w6rks were at the discretion of the Government. This proposal was sharply opposed by Loud Robert Cecil and others on the ground thai it would lead to just thai, corruption of the constituencies which haa vitiated the whole course of New Zealand politics in reoent years. Hit. L-LOYP-GEonafe wae not slow to recognise the force of this opposi tion, and as reported by cable last month he agreed to an amendment which would remove the danger of corruption. The English mail brings us this week the detailed reports of his final acceptance of the principle that public works grants, should bo removed from the control of the Government of the day. When the Standing Committee entrusted with the Bill met on September 15, Lord Robeet Cecil moved to provide that the Treasury advances, instead of being made on the representations of the Advisory Board proposed by the Government, should bo made by a body of "Development Commissioners." Ho the purpose of the Bill, but he pointed out that "the danger was that if they put a sum of £500,000 at least into tho hands of the Government of the day it wae an indication to all local districts to press for a share in that grant":

"That state of things was not fair to the Minister or even to the Constitution of the oountry. Tho 'irst constitutional duty of a local member was to look after tho constituency which, ho repretcnted, and it ould bo his duty- to go to the Minister of tho day and 'press tUe local needs of his. neighbourhood upon his attention. Was that a satisfactory system when they wero dealing with grants of publio money? Ho baw in it the greatest danger to tho purity of our public Hie nnd tho economy of tho State. In Continontal countries and in all , our colonies that systom had resulted in great of public money, and something which was indistinguishable from corruption." The' Chancellor of tho Exchequer admitted tho importance of this point, and when the Committee, met next day made a long statement which wo must quote from rathor fully for the benefit of those Minlsteis who havo committed themselves pretty far to the adoption of Mr. LloydGeorge's ideas. Mr. Lloyd-George said that it was not intended that tho Fund should be used for tho purpose of serving oither a political party or an indhidual candidate for Parliament, or of providing'relief works. "It was very important," he went on, "that they should have a body which was entirely nloof, which was not responsible to sections, which was not unduly impressed with any personality, whether insido or oufcsido the Administration, a body which would examine schemes on their merits, taking a genoral survey of tho whole of the claims, cofordinatng, systematising, weighing them in the balance, and selecting for recommendation the one, two, or three that *cro really worthy." Ho "agreed that it -nas dcsirablo that the Commission should not bo under the domination of the Executive, and that it should bo free not merely from tho taint qi_bribcry, but from tho very possibility

of suspicion/of it. Ho would rather err on the sido of oxcessivo caution so far as that was concerned." • ."■.'•

Summing up (we quote'.the "Times" report) the Chancellor said tho Govornmont were prepared to assent to the main proposal, first of nil, that there should be n Commission, which should be independent during its term of offico of the Executive. The recommendations of the Commission should bo final if they decided to'reject, but not final if they recommended, a scheme, because that should'not bo withdrawn from the Executive. The Comrais-. sibn ought to bo a small one, and appointed for a term. There ought at least to be one paid member on tho Board, i . '. . -The' Commission should consider schemes, like a Committee of the Cabinet,' sotting experts to inquire and report, and haying absolute freedom, as far.as procedure was concerned, to.arrive at & true judgment in their.own way. '

This fundamental modification of tho original .proposal was naturally woll received by all parties. The Times noted, however, that to ( give the Treasury—that is to say, tho Government—the power of veto, would be to leave "the more subtle danger" of "selection between objects, all equally excellent and equally approved, in such, a way as,to serve an immediate political end." But, of course, when the main door to corruption has been deliberately closed, as. tho Government has agreed to do, it will not be difficult to get all parties to agree to close the smaller crevices if it is'shown that they actually permit the entrance of abuses.

ffew Zealand has probably suffered more Beripus damage from the Executive's control of public works expenditure than, from any other singlo cause. .We all know how A supports votes for B's constituency, even although he knows they are indefensible, because he relics upon B's support for his own raids upon the .public purse; Not only does this system '—operating, of course, in respect of railways as well as of roads and bridgesload to the wasting of enormous sums of money; it has led many constituencies to forgot everything excepting the . importance of returning to Parliament the men who can get the largest eliaro of the spoil. The better class of member would bo glad to be relieved of, the duty of defending his political life by' fighting for local grants. can be transformed from local delegates into national deputies in only one way—by making it unnecessary for them .to subordinate .everything to the pillaging of the Treasury, by giving thorn an opportunity to cultivate large he,ads instead ol capacious hands. This can. only be achieved by adoptingthe British plan of placing the allocation of public works expenditure inthe hands of a Board independent of the ' Government of the day and responsible only to Parliament as a whole. .