The Dominion. TUESDAY, SEPTEMBER 12, 1911. "PRUDENT FINANCE."

Dominion, Volume 4, Issue 1230, 12 September 1911, Page 4

The Dominion. TUESDAY, SEPTEMBER 12, 1911. "PRUDENT FINANCE."

It is perhaps worth while recalling at the present time that Mr. Millar, then Acting-Minister for Financc, spoke on the. financial position of tho country at Dunedin a few months ago and gave a very frank and full statement of affairs. We were pleased to be ablo to compliment him upon his frankness, Ave also noted at the time that Mr. Millar expressed the opinion that if the revcnuo kept up it would not be necessary to introduce a Loan Bill this session. Wc were not particularly enthusiastic over this announcement —although it was pleasing enough in its way—because, as we pointed out, the Government had already taken authority to borrow at the rate of over four millions a year without the necessity for passing any Loan Bill. Thus, if the Government introduced a Loan Bill at all this session, it would mean that .they intended to borrow—or wanted authority to borrow—more than four million pounds this .year, in addition to the seven millions, or thereabouts, they borrowed last year. What Mr. Millar actually said at Dunedin (see papers of May. 10, 1911) was this: "If the revenue kept lip llic samo as last year t'hcy would bo able to transfer JStiOOftOfl to tho Public AVorks Account, giving them .tt.fljl.OOO, which would relieve the necessity of any Loan Bill next session." Next session of coursc referred to

the session now being held. It will bo seen from tho Financial Statement presented to Parliament by Sib Joseph Ward on Friday evening last that, despite Mr. Millar's anticipation that no Loan Bill would be ncccesary, the Prime Minister proposes a loan of £1,500,000 for public works purposes. But, someone may answer, Mr. Miliar qualified what he said about a Loan Bill not being necessary with the remark: "if the revenue kept up the same as last year." Quite so. And what docs Sir Joseph Ward say in his Budget? "I estimate the revenue for 1911-12 to be £10,429,100, being £1111,937 more than that for last year." Here we have the Prime Minister, with the results of five months of tho financial year available to.guide him, anticipating a substantial increase in tho revenue. Moreover, he anticipates at the end of the year a surplus of £878,927 (less votes to provided on the Supplementary Estimates). And yet he brings down this Loan Bill. It is ft curious contradiction of his colleague's assurance. But there is something still more curious to record. At the beginning of last year—that is, on March 31, ,1910—the balance to credit of the Public Works Fund was £312,366; various payments of loan money, etc., were made into the fund during the year, and after expending £1,.963,569 there remained a balance at March 31, 1911,-of £1,140,015. Now let us sec how the fund for the current year will look if wc pay into it the various sums available or estimated to bo available: £ Cr. balance March .11, 1911 1,110,015 Balanco loan money to be received 181,G50 Mr. Millar's estimated transfer from Consolidated Fund 600,000 Proposed now loan 1,500,000 3,121,095 Here we have in this election year a Public Works Fund built up by borrowing and revenue transferred from the Consolidated Fund to tho enormous sum of £3,421,G95. It may or may not surnrisc our readers to learn that the hcß.viest expenditure ever incurred under the Public Works Fund of the Dominion was 183,245—in election year 1908-09. And yet we find the Ward Government, in election year 1911, building up the Public Works Fund by a million and a half loan—in face of Mu. Millar's assurance that it would not bo necessary to borrow if the revenue kept up—to the enormous dimensions shown. It must not be thought that we are blaming Mr. Millar in any'way. He, as a reasonably prudent man, stated what could'and should be done. But the Government, with their existence at stake, take ' another view. Why should thev hesitate to add another million and a half to the Public Debt if the additional means of bribing constituencies which will bo thus secured will assist to keep them in office ? It is unfortunate no doubt that Mit. Millar should have preached sound and prudent finance, and embarrassing questions may bo put ■to Ministers conccrning this: changc of front; but when all is said and done the Government will have the money to throw around at election tinlo and that is what Ministers really care most about. Briefly put then, the position is as follows: The Government at the present time have power to borrow this year over four million pounds without going to Parliament for further authority. In addition they propose to borrow another million and a half for public works purposes. And _to add still further to their electioneering efforts they are making provision for an additional expenditure of over three-quarters of ,i million out of the Consolidated Fund, making tho expenditure under that fund over ten millions. This is styled prudent arid cautious finance by the Ward Administration. Wc should think that Mr. Millar must feel almost as uncomfortable in such company as his late colleague Mn. Fowlds. Indeed, it would not surprise us greatly, in view of what is happening in connection with the railways, to see him following that gentleman's example at no distant date.