Untitled

Dunstan Times, Issue 2092, 27 August 1901, Page 3

(Continued from page three.)

supervision are required at the distributing end, thus avoiding the forcing of products upon thejilready glutted market. In respect or extending our markets, the trade expert" that has been appointed to proceed to South Africa leaves next week. He is fully acquainted with what produce is available, and the prices at which it can be placed f.o.b. for shipment. From the information we have to hand, it will be necessary to have cold stores for Ifie'w Zealand produce established in Seuth Xfrica. It has also been urged that there is not sufficient storage in the Mother Country for our produce. This opens up a very wide question, and its success or otherwise depends to a great extent as to how far the New Zealand Government propose to go in for taking control of the frozen meat industry, and as to what amount of support is obtainable within the colony. The erection of cold stores in the Mother alone would be of little advan- ■%►"• If, however, the producers and freezgjg companies, in conjunction with the fcrovernment, could arrange for the cheap carriage of our frozen meat and regulate its distribution throughout Britain, the result would be beneficial. The cold stores should in any case be close to the point of discharge. Provision will be made this year for the erection of cold stores, and, subject to confirmation bv our trade expert, the experiment will first be tried in South Africa. TRADE WITH SOUTH AFRICA. It will be within the recollection of hon. members that during the recess the Government called for tenders from steamship owners for a service between the colony and South Africa. Th results were not very encouraging, the amount of subsidy demanded being too high for the service offered, and the scale of freights was also unsatisfactory. This being the case, and seeing that the Shaw, Savill and New Zealand Shipping and Tyser line Companies had decided to establish a six-weekly service as an experiment, it was decided at the time to take no further action, but to await results. I regret to state there has been little or no improvement in the condition of affairs. Small producers and traders have no ohance whatever. Freights, as compared with those from Australia, are very high, and there is no regularity. We have therefore come to the conclusion that to be a success it is essential that the line of steamers trading with South African ports should return to New Zealand, and the authority of the House will be asked to provide t# necessary subsidy to authorise a contract being entered into for a period of not less than three years, and to invite public offers therefor. As illustrating the present situation and its drawbacks, I may state that offers were invited for a large order of oats from the Imperial authorities, with the result that offers came from three large traders only. Owing to the conditions, farmers or* small traders could not tender, and the Government were unable to obtain the oats within the price limited, and the order was probably lost to the colony. Such a condition of affairs is not in the best interests of the farmers. It is impossible for the Government to take small parcels of grain from the producers, but an opportunity of obtaining suitable freights should be given them to conduct their business as they think best. THE RETURNED TROOPERS.

It will bo seen on reference to the Defence Estimates that there is a large reduction this year as compared with the amount voted last year under the head of “ Contingents.” The cost of the First, Second, amt. Third Contingents was borne by the New Zealand Government, with the exception of the amount paid to them at Imperial rates whilst serving in South Africa. Ihe Fourth and Fifth Contingents were on different terms, and were wholly paid by the Imperial Government. The First, Second, Third, Fourth, and Fifth Contingents have returned home. At the present time v a have two contingents in South Africa —the Sixth and Seventh. They have taken the place of the Fourth and Fifth- It be superfluous for me to say more than that our brave sons have worthily represented this colony', and have earned the commendation pf eqch and every’ one of those commanding jn South Africa. An attempt has been made without just ground to show that prompt payment has not been made to the returned troopers. There is no real foundation for this statement whatever. Ihe Fourth and Fifth Contingents were practically Imperial soldiers. On leaving South Africa certain moneys were given to paymasters, and on the arrival of the Tagus in Otago we sent down our paymasters with about £BOO to the officer commanding the Otago district (Colonel Webb), and since then other moneys have been forwarded, with instructions* to pay the men on the officer commanding certifying that the amounts were due. At the present time Colonel Davies and his staff are making out accounts, and as fast as certificates aie obtainable the moneys are paid We have already advanced over £3,000. 13 hat has caused some confusion has been the fact that some of the men were not paid by the Imperial authorities before leaving South Africa. We are only trustees, acting on behalf ofAhe Imperial authorities. We cannot ’paywway’ moneys unless the certificates are forthcoming that the amounts are due. I have it on the authority of Captain Jackson, who was in charge of the D Squadron of the Fifth Contingent, that he brought money with him from South Africa, and that-he has paid all his men. To show how unjust the allegations made are, I will give a case in point. A trooper got one of the members of the House to interest himself on his (the trooper’s) behalf, and the trooper telegraphed to know when his pay would be forthcoming. I had the matter immediately attended to, and found there were a couple of pounds coming to him, and had it not been for the extension of the £5 gratuity' ihe man would have been overpaid about £3. The Under-Secretary of Defence has never refused any advance* where it is shown that the money' is due. and a special staff are kent busy at the present time doing nothing else but payincr advances, and we. have advanced about £3,000 in excess of the moneys in our hands belonging to the Imperial Government To show how ludicrous and foolish is the statement which has appeared to the effect that it was owing to the tightness ef the New Zealand finances that our boys were not paid, it will be well for me to etato that the total amount involved is about £20,000. Already we have advanced £3,000, and application has been made to the* Imperial authorities for the amount due by them. In the meantime we have advanced £3,000, as already stated, and as fast -as certificates are given payments are made, and this course will be followed without I am iiapn 7 * to say, embarrassing our - finances. |P£ FEDERATION WITH AUSTRALIA. As lion, members are aware, a short time jrr j a Royal Commission was appointed to take evidence in New Zealand and Australia in regard to the federation of the colony ■\vith Australia, and this was reported to be undesirable and not at present in accordance > Tvith.the wishes of the people of this colony. The tariff of the Commonwealth has not as ■yet been submitted, but inasmuch as some eight million pounds is required to meet revenue requirements, it may be taken for cranted that there will not be any serious alteration in the Australian tariff. Nor is It likely that the Federal tariff will materially affect the trade relationship as between

this colony and the Commonwealth, «nd there is no foundation for the fears of many that becau.se New Zealand has not deemed it prudent to federate the farmers of this colony will, in sending their products to Australia, be penalised. BRITISH MAIL SERVICES. In accordance with what was approved last session, nothing further has been done respecting the San Francisco service, and we- are, as arranged, paying for actual weight of mail matter carried, the amount paid last year being about £17,000. The Oceanic Company are anxious that a contract should be entered into for a specified period, and the matter is receiving consideration. The subsidy asked, however, is much higher than would be reasonable for the colony to pay. Whilst, it would be inadvisable to discontinue the San Francisco service if it can be got on fair terms, it would also be a good thing to have direct communication with Canada via Vancouver, if it could be brought about by the payment of a reasonable subsidy. Suggestions have been made that a transhipping service to Fiji, to connect with the Vancouver steamers, should be an improved service as between New Zealand and Australia, and seeing the number of magnificent steamers belonging to the various companies trading from Great Britain to Australia, an effort to bring these lines of steamers to our colony is worthy of consideration. It is quite feasible, and could be done at a reasonable cost. With regard to the San Francisco and Vancouver mall services, proposals will be submitted to the House later on dealing with these mail services. PACIFIC CABLE. I feel sure that it was with pleasure that hon. members noted that the Pacific cable contract had been entered into, and preparations for the laying of the cable are now being proceeded with. An officer representing the Pacific Cable Board has visited New Zealand, and, in conjunction with the Superintendent of Telegraphs, has selected the site for the cable station at Doubtless Bay. The completion of this cable is a matter of great importance to our colony, and it will enable New Zealand and Australia to have an independent cable between those countries. I regret to say that some friction has arisen owing to the Government of New South Wales — one of the contracting parties—having granted concessions to the Eastern Extension Telegraph Company inimical to the Pacific cable. Canada strongly resented the transaction, and at one time it looked as though the error committed would imperil the cable. I am pleased to say that the trouble has passed over, and progress is being made with the work. It is not likely that any claims for payment on account of interest will come to charge this year. The Pacific cable will serve as an additional cable route for England, and doubtless the Board will see the propriety of allowing a local service being established between Australia and New Zealand. The rates for the existing lines between Australia and New Zealand are not satisfactory, and it will be in the interests of the Australian Commonwealth, as well as of New Zealand, to have the whole of the cable between these two countries Stateowned. ADDITIONAL FUNDS. The minds of hon. members having been relieved in respect to the Consolidated Fund Acount, the next —and to many members the most important—matter demanding attention and consideration is the public works expenditure. Of the money to be expended and the amount of money proposed to be raised it would be out of place for me to trespass on the domain of my colleague the Minister of Public Works by going into details. I may say, however, that we estimate there will bo an expenditure of about £1,950,000, the expenditure on railways and roads being approximately about the same as last year. The balance on the 31st March last was £232,515. To this may be added £BOO,OOO the balance of the million loan of last session, and we propose to transfer to the Public Works Fund £500,000 of the surplus of the past year, making the total assets £1,552,515. Seeing the estimated expenditure is £1,950,000, it will therefore be necessary to ask authority for a further loan. In endeavoring to bring our borrowing within reasonable limits, considerable difficulty has been encountered owing to the heavy expenditure and liabilities which have been incurred during the last four months, and I have some misgiving as to the amount to be asked for which will be sufficient to carry us on till next session. Certainly the greatest care and economy will require to be exercised by myself and colleagues to keep the public works expenditure within the ways and means. We shall be aided in this endeavor if hon. members will restrict their demands in respect to the requirements of their districts. The time is most inoppox-tune for extensive borrowing. The prolonged disturbed conditions in the Mother Country, caused by circumstances well within the knowledge of hon. members, has had an effect on the financial world of an abnormal character, and to such an extent as to render it unwise to ask for more than one million, for a larger sum might prove at this juncture injurious to the credit of the colony. GREATER NEW ZEALAND. The action of the Imperial Government in agreeing to the extension of the boundary of the colony so as to include the Cook and other islands has given general satisfaction, and such enlargement taking place on the day of the arrival of their Royal Highnesses the Duke and Duchess of Cornwall and York was pleasing in the extreme, lire fact that the inauguration of Greater Ncu Zealand occurred on the occasion of the visit of our future King will ever be a pleasant recollection. Colonel Gudgeon has been Resident Agent for New Zealand, and the well-being of the inhabitants of the islands will be our first care, and nothing will be done which will tend to disturb the harmony now existing. In respect to revenues, customs, postal, etc., there is no present intention of materially altering the existing conditions. The present revenues enable the islands to be selfsupporting. Seeing that goods from New Zealand will ultimately be admitted into the islands free of duty, there will be a loss of revenue, but this will be more than compensated for by collateral advantages. Mr Percy Smith has very generously undertaken to go to the island of Niue for a period of three months, and whilst there he will introduce the new order of things, which we hope will be to the benefit a .ike of the natives and of the people of this colony. On several of the islands, particularly Penrhyn, a resident agent will require to be located to see to the interests of the natives and also to protect the interests of this colony. The cost entailed by the axrpointment of such resident agents will be more than recouped by revenues directly received, so that each of the islands will bo self-supporting, and tht-~-without imposing any direct taxation upt& the natives. As previously intimated, Paff liament will be asked to extend the operation of the Ordinances now in force in tha islands, pending other provisions being made. It would not do for the whole oS our laws to be enforced in the islands, for the operation thereof under existing conditions would only result in friction and confusion. SUMMARY. In dealing with the many questions ueceS-

sarily involved in placing the public accounts before lion, members, I have endeavored to be clear and explicit, not withholding nor unduly extending the information which is necessary in order to afford a lucid explanation of the finances of the colony. The Budget proves that the financial position of the colony is sound and prosperous, that the operations of last year were satisfactory, and that at the close there was a credit balance of £532,000. This year there will be a surplus, and additional taxation is not required, provided the present laws remain unaltered. I trust that I have clearly demonstrated that with regard to the current year's finances there was nothing to warrant the alarm and pessimistic view which some persons have taken respecting them, and that, with care and economy, notwithstanding the very heavy and exceptional expenses already incurred, it is reasonable to expect that there will be a fair surplus on the 31st March next. Presuming, as we do, that the public works expenditure, will be fairly up to the estimate, the balance left in the Public Works Fund is likely to be less on the 31st March next than it has been for some years past. It is better that this should be so, and that there should be a tapering off rather than increased borrowing, as compared with last year. The difficulty in raising money in London has not been without its advantages, for it has taught us that we may with success float loans locally under normal conditions. A 4 per cent, rate is too high, and although money could be raised at 3 per cent, at Home, the expenses there are so heavy that it would be an advantage to some extent to raise our money locally at per cent., and to issue debentures over the Treasury counter, or even over the counters of the colony's banker, so that a person could as easily obtain a Government shortdated debenture for £IOO as he can for his money in the bank, and obtain his receipt therefor. From what I can gather, after making careful inquiries, it is my opinion that next year financial matters will have reached a normal condition in the Mother Country, and that there will be a plethora of money easily obtainable at 3 per cent, It must be pleasing to lion, members to know that the elasticity of finance for which our colony is noted still continues, and that notwithstanding the concessions granted last year our Customs revenue is buoyant, and more than realised expectations. The Customs revenue is the barometer of the spending power of the people, and also of our prosperity, and the indicator points between "fair" and "set fair," "whilst the financial meteorologist announces a blue and cloudless sky in regard to the railways. Since the Government took charge of them in 1895, concessions have been given to the value and extent of £420,000. Eliminating the abnormal traffic created in the month of June last, the ordinary traffic shows that there will be increased earnings as compared with last year, and unless unforeseen circumstances arise, the estimated receipts from railways will be fully realised.

The settlement of the people on the land is of paramount importance What ive Lave done, are doing, and must do is to extend our operations and increase the number of our settlers, and to those going on the back blocks and the bush lauds easy terms must be given by May of relieving the tenants from payment of rent for the first few years, and also by way of insisting on improvement conditions being complied with, lit the same time affording relief from rent until the tenant is enabled to get his head above water, and to pay his way from the produce of the land itself. In respect to gold mining, steady progress is being made. Science has come to the rescue in regard to quartz mining, whilst alluvial mining by dredging has assumed huge proportions. I understand that the yield of gold this year will show a considerable increase over last year. The proclamation of certain rivers is indispensable, and although the first cost may appear heavy, yet this is unavoidable if ground sluicing and dredging are to be maintained.. For years past it has been contended and urged that the State should open its coal mines and be self-supplying. The existing dearth of coal and excessive charges practically forced the position, and, with a mood selection and careful administration, there is every reason to believe that the result of a State-owned coal mine will, as in many other ventures of a progressive character, prove successful. In respect to industries, however, the horizon is somewhat clouded, but in a short time this cloud will pass away. The employers and employes should both work together for their mutual benefit. What will help our industries more than anything else will be to have complete technical and manual instruction for the young of our colony. This education is being afforded, and the country will be recouped for this expenditure a thousandfold. The increased expenditure to meet the charge necessary to give effect to the scheme for a national and uniform scale of pay for teachers is fully warranted, for iu a great measure the future of our colony depends upon the teachers. They have been underpaid in the past, and the remuneration and scale now submitted are fair and reasonable. During the last few years the increase in our public debt may appear out of proportion to the increase of our population and trade, but when it is borne in mind that a very large part of this indebtedness is created for the purpose of advancing money to settlers for the purchase of land for settlements, for loans to local bodies, for land improvement, and for other purposes of a directly reproductive character, there can be no question that splendid security has been given. There is direct local payment of interest and many collateral advantages, which fully warrant the credit of the colony being pledged for such purposes. Contrast the wealth of the colony per head of the population with the increased indebtedness, and the most pessimistic individual must admit that the policy pursued has been in the best interests of New Zealand. The roading of lands prior to settlement, and the endeavor to improve the means of communcation so as to permit the settlers tu bring their produce to the main roads and realise on it, is of paramount importance. The completion at an early date of the North Island Main Trunk railway and the coupling together of Auckland and Wellington by the aid of a band of steel is essential and of great importance. It will remove existing fears, and give a potential advantage by increasing the tourist traffic, by the settlement of the people on the hind, and by bringing the settlers in the far north and those in the south closer together for mutual profit and good. This work is national in character, and necessarily, in respect to railway construction, should take first place. The railways in a young country should be run for the common good, and to* give encouragement to the producers, small as well as large. The principle to be observed is to carry your produce at .the lowest possible rates, so as to give the producers an opportunity of competing with the markets of the world, and to provide cheap fares and freights to the convenient markets of the world, so as to obtain revenue from widely-distributed areas of settlement. This year, from the circumstances narrated, material reduction in railway freights could not bo granted, but next year, with the abnormal expenditure eliminated, we hope to grant such concessions as will bring down the net earnings of our railways to 3 per

cent. Some honorable members may have misgivings respecting the large amount asked for defence, but money spent with this object is only the payment of a premium on an insurance to preserve peace. It is -wise to be ever prepared for war, and it is also a duty we owe the Mother Country and the Empire, as well as to the people of New Zealand, that our able-bodied men should be trained to arms, and that our sons should be drilled at school so as to become efficient members of cadet corps, and ultimately volunteers, and when lequired, as in the case of our sons in South Africa, to prove themselves valiant soldiers of the King. I hope that, although there may be differences of opinion respecting the Budget now submitted, at all events hon. members will do me the credit of believing that the conclusions have not been arrived at hastily, that the position has been accurately gauged, and that time will prove the finances of this colony to be sound and secure. I advise, and that in good faith, that at the present time the good steamer "Finance" should be steadied, and that " Slow " and not " Full speed ahead " should be the order of the dial. Reasonable care will ensure the good ship riding buoyantly and safely in calm and placid water. The information upon which the present position has been gauged will be plated at the command of hon. members, and I trust that they, with myself, will conscientiously and honestly arrive at the conclusion that our fair coiony is prosperous, that there is a bright future before its people, that progress is assured, and that as at present so in the future, this colony will hold a foremost position as a British dependency.