FINANCE BILL

Dominion, Volume 17, Issue 290, 24 August 1923, Page 9

FINANCE BILL

SEVERELY HANDLED IN UPPER HOUSE RAILWAYS THAT DO NOT PAY SHOULD “DEAD-ENDS” BE SCRAPPED ? Members of the Legislative Council yesterday were reluctant to allow the fi eo passage of the Finance Bill without discussion in spite of the fact that the Council had no power to make any alterations. The greater portion of the debate touched on the expenditure on railways, this being deplored by members, who foresaw mighty progress in the motor vehicle. Others took the view that where a railway was a “dearl-end” and not paying it should bo abolished, but this was challenged by the members who believed that as 'a young country, expenditure should continue in order to settle the land and increase its productive capacity. Sir Francis Bell said ho did not propose to deal with the minor clauses of the Bill. The main provisiin, as usual, was the authority to borrow. Ihe amount for public works was £4,000,000., advances to settlers -£3’922,00<)> and advances io workers £1,500,000. However, it should be remembered that in connection with public works a considerable part was revenue producing. There were works which must be completed in order to bring them to an interest-earning point, particulaly railways, but the Government had kept so far as possible the expenditure upon railway extension within £1,000,000 per year. There was such a thing as actual necessity. He believed that the Government would sooner spend money on roads than upon railways. There was also the question of the immense undertakings in. connection with hydro-electricity, which it would be impossible to complete unless money was forthcoming. the only other important item was tho section dealing with the income tax, which was increased on debentures. It was impossible to get this into the annual Income Tax Bill, but ft was desirable that the matter should be put through so that no one could say that they had been misled. , ‘ The Hon. Sir E. Mitchelson asked if the Leader of the Council would state when this enormous borrowing would decrease. He reminded the Council that many of the railways were not paying. There were many instances of where the railway lines could not be made a paying concern, and if they did not pay, expenditure should cease. They had been spending considerably on railways, end whilst he did not blame the-Government, he did blame members who were pressing in that direction. The amount which had to be mot during the next three years in regard to 'rans was about £36,867,275. and this was considerable; Generally speaking extensive borrowing at a time when taxation was almost unbearable as at present, was to be deplored. The Hon. Dr. A. K. Newman said he agreed with what had been said by the late Mr. Ballance to the effect that it “was time New Zealand was weaned from tho servile dependence on the London money market.” It surely was comnioii knowledge that the railways of New Zealand were not paying, and with the increasing popularity of motor transport they would be threatened to a greater extent as time went on. In London and Australia, between thirty or forty per cent, of the ' railways were not paying. He would suggest to the Minister that motor-cars and motor-lorries be initiated in conjunction with tho railways. He saw no justification for going on with some of the. railways that would not pay, such, as the railway between Napier and Gisborne, which could not possibly pay. Exception was also taken by Dr. Newman to the stories as to the cost of certain schemes before they were begun. As an instance, Otira was estimated to cost only £440,000, but actually cost £1,1(00,000. Tho Hon. J. Craigie took the view that as a young country expenditure was not only justifiable, but necessary. The Dominion was like a huge estate which must be improved and made fit for the settler, and any expenditure would be reproductive. On the subject of banks. Mr. Craigie contended that it was not the duty of the State to be associated with a bank returning such high dividends as the Bank of New Zealand. Ho cited the Bank of France as the model bank, out to help the agricultural interests of the country. The Hon. H. L. Michel said the ; reason why some of the railways were not paving was because they were unfinished. There was no evidence that the banks of the country were not doing magnificent work for the rural population. He failed to see how the Government could do anything else but meet the expenditure. The Hon. G. J. Garland referred to the fact that there were no fewer than 18 “dead-ends” in the matter of railways in the South Island. These should be weeded out and made into reproductive roads. He claimed that there was no bank in the world that did so much for the people as tho Bank of New Zealand. The Hon. G. M. Thomson did not think the country could carry on as it had been doing for tho past ten years without paving a penalty. It was also extraordinary, he said, that manv big works were being pushed forward at a time when everything was so costlv. There was reason in all things, but it should be remembered that there was such a thing as “a hanny medium.” The Hon. W. Earnshaw regretted that members < f the council should have seen'fit to adversely criticise the Government. In the circumstances the country was moderate in its expenditure. He stressed the necessity for introducing into the country boys and girls from the Mother Country in preference to tho adult workers who came with ail the prejudices formed before coming to tho country. The Hon. E. Newman said that tho Government had invested much money in works which were, indeed, good security for tho debt incurred. It was necessary to complete works before they could be made productive. It was very gratifying to know that tho credit of New Zealand stood so high on the English market. The Bill was read a third time and passed. LEGISLATIVE COUNCIL The Legislative Council met at 2.30 p.m. yesterday. The Hon. M. Cohen asked the Leader of the Council (1) Whether, with the object of preventing so many motor fatalities, the Government would take steps to amend the law in the direction of preventing the holders of drivers’ licenses who may be adjudged guilty 1 of reckless driving from holding motor licenses for a. definite period ? (2) Whether such offences, when involving loss of life, should not be reduced from manslaughter under the criminal code jto one of reckless driving while in charge of a motor-car?

’ In reply, tho* Leader of the Council (Sir Francis Bell) stated that th* necessary provision to meet the first request would be made in the Motor Bill It seemed, however, almost impossible to proceed with the measure this session. An amendment of the Crimes Act had been suiggested in connection with the second question, and legislation was under consideration. The Hon. Dr. A. K. Newman asked the Government whether, now that a British Association is formed to study, and, if possible, reduce the cancer scourge, they would, through the Health Department, supply the association with statistics and any tions to combat tho disease, which, next to heart d : sease, killed the most persons, and was on the increase. Tho Leader of the Council replied that representatives of the New ff ea " land branch of tho British Medical Association had recently conferred with the Minister of Health, and it was expected that, as a result, the Health Department, by co-opcration with the profession, would be enabled to collect information and statistics which would be suitable foi transmission to the association. , In reporting the Companies Amendment Bill, tho Statutes Revision Committee expressed the opinion that it would not be advisable to proceed with the measure this session. In connection with the claim of H. L. Worthington in respect to a patent rat-trap patent, the inquiry committee to which the matter was referred reported that it was satisfied that the petitioner had no legal right to claim against tho Government, and that the Government should not entertain the vjilea of sending the claim to arbitration. The committee recommended, however, that in consideration of the petitioner s age and other circumstances he bo paid £3 weekly. The report was tabled. , . x . The Christchurch Distr’ct Drainage Amendment Bill, moved by the lion. R Moore, and tho Manawatu-Oroua River District Bill, on the motion of the. Hon. E. Newman, were read a second anti third time and passed. The Stamp Duties Amendment Bill was reported by the Statutes Revision Committee with several technical suggestions, and was read a third tunc and passed. The Council adjourned at 11.10 p-m.