PARLIAMENT. HOUSE OF REPRESENTATIVES. Monday, 19th November.

Evening Post, Volume XV, Issue 272, 20 November 1877, Page 2

PARLIAMENT. HOUSE OF REPRESENTATIVES. Monday, 19th November.

After we went to press yesterday the House was cccupied the whole afternoon in dealing with the Land Bill in committee, the Canterbury licensing clauses causing a further warm debate. No important alterations were, however, made. At 7.30 the House, and all the galleries, were crowded to hear THE FINANCIAL STATEMENT. The Hon. Mr. Larnach then made the Financial Statement. In doing so, he remarked that iv order to devise a clear, comprehensive, economical, and stable plan of finance, two courses were open to them, viz., either to ask supplies and adjourn for three months in order to have time to frame such a scheme, or to take up the estimates of their predecessors and make such modifications in them as they deemed necessary, leaving the task of reorganising nnd consolidating the present financial and departmental systems to the recess. They had determined to adopt the latter course, aud in doing so would indicate their views upon the present financial positiou of the colony, the character of the changes they proposed to inake ; and the necessity which, in their opinion, existed for making these changes. Referring to the FINANCIAL STATEMENT OF THE LATB COLONIAL TREASURER, Mr. Larnach stated that he would accept all the details in reference to the different loans, which that statement contained, as being accurate. Ho would also accept the estimates given with respect to expenditure. He considered that no other course was open 'for his adoption. He then asked the House to allow him to indicate briefly, from his point of view, the tendency of the present system of finance, the evils to which it was rapidly leading, and the only available remedy, which would enable the colony to maintain its credit, and bring to a successful issue the Immigration and Public Works policy, without imposing a heavy burden on the people. EARLIER MEETINGS OF PARLIAMENT. He pointed out the disadvantage of Parliament meeting some time after the commencement of a new financial year. As a period of several months sometimes elapsed after Parliament met before the Appropriation Act was passed, it followed that practically the expenditure was conducted without auy appropriation having been made, aud solely upon the authority of Imprest Supply Acts. To cure this system the Government proposed either to alter the time of the commencement of the financial year, or to tnke care that the Assembly met at an earlier period, say not later than the first week in June. TREASURY BILLS. In the financial year 1874-75 there were outstanding Treasury Bills — that is, loans raised to meet deficiencies in the revenues of previous yeara, and chargeable to the consolidated fund— to the extent of £400,000. 1 1 had been hoped to reduce this sum by payment of £100,000 a year out of ordinary revenue ; but this anticipation had not teen realised. On tho contrary, the amount of Treasury Bills had steadily increased, until at present they reached a total of £800.000. The charges upon the consolidated fund had become so large that to meet those Treasury Bills out of the fund upon which by law they wore a proper charge appeared to him to be hopeless. In 1875-76 a further issue of Treasury Bills, to the amount of £172,000, was requisite, and last year a third issue to the amount of £260,000 was made. "The late Colonial Treasurer had proposed a similar temporary borrowing this year, as a receipt in aid, to be secured — not upon the consolidated fund, or the ordinary revenue of the colony — but upon the land fund of the provincial district of Otago. He thought such a condition of affairs was unsatisfactory, and that there was a sad want of equilibrium in the finance of the colony. PROVINCIAL LIABILITIES. If this were all, however, it would not be so difficult to secure an even balance. But last session the House finally determined to abolish the provincial system, and in so doing made all the liabilities of the provinces colonial liabilities. This burden would, he thought, be much greater than was ever anticipated. There was considerable difficulty in ascertaining the total amount of the provincial liabilities, but there was more difficulty in finding the means to liquidate them. Up to 30th June last, £237,500 had been advanced from loans to meet provincial liabilities, and there also existed at that date overdrafts at the bank on provincial accountamountingto£loo,Bßß, or an aggregate sum of £343,388, which might be reduced by £45,888, being the amount of balances in hand to meet liabilities on provincial account, thus leaving still unsupported the sum of £297,500. At the present time there were known to be outstanding further liabilities amounting to £279,766. reducible by about £30,000 due from land fund and other sources, leaving a total to be provided for in some manner of £249,766. But still heavier liabilities in this direction would surely yet present themselves, and, judging from a statement he found in preparation for the late Treasurer, they would appear to reach thfc total of £600,000. In January next a sum of £104,000 would have to be paid to the Wellington Trust and Loan Company, for money lent to carry on the important reclamation works on the foreshore of the harbor of Wellington. It was true that the work undeniably promised to be re-productive, and the land was very good security for the money spent, but the work would not be completed when the next payment became due, and il could hardly be expected that sales of sections to any extent could take place for some time to come. The' money, no doubt, could be re-bor-rowed on the same security ; perhaps, even, on better terms than before. UNSTABLE CHARACTER OF RECENT COLONIAL FINANCE. From the statement of the late Colonial Treasurer the House would have seen that there remained no available balances from loans; but, on the other hand, it would be absolutely necessary to go into the moneymarket under disadvantageous circumstances to borrow still further. To attempt this, they must be prepared to show a state of finance characterised by soundness and stability. But had any stability been shown in the finance of the recent past? By the Abolition Act a financial arrangement, supposed to be of a very definite and permanent character, was arrived at in reference to the land fund ; this grand arrangement, promising durability and stability, never even saw the daylight of its existence, but fell still-born. The difficulty was temporarily tided over by provisions in the Financial Arrangements Act oi'last session, and the late Government proposed to adopt the same expedient this year, thus removing every trace of fixity and finality from the finance of the colony. But he would show the STATE OF THE TREASURY CHEST. It was much more satisfactory to deal with cash than with book-keeping accounts, for with the latter balances could be easily manipulated, while with the former it wa9 difficult to show two sovereigns where only one existed. Wherr the present Government assumed office on the 13th October last, there stood to the credit of the colony, as shown by its banking accounts, £762,312. of which £105/63 stood to" the credit of the consolidated fund, and £544,543 to the land fund. THE PREBENT POSITION OF THE LAND POND. But the whole of the land fund was appropriated by special enactment, and the Government had no power to touch one shilling of it for any purpose, beyond the amount the law placed at its disposal. Therefore, however large the land fund might become, the residue would have to t; returned to the district in which it was raised. He felt pleasure in saying that -the land fund this year would be largely in excess of Major Aikinson's estimate, which was £743,000. But to the 30th September there had actually been paid in £542,231, and he thought it was quite reasonable to suppose that the respectable total of £1,000,000 would be realised. He would, however, call the attention of the House to the fact that the excess over the estimate had wholly risen in Canterbury, the amounts realised in the other provincial districts having been under the estimates. THE LAND FUND IX THE FUTURE. Now, although the land revenue had been nominally regarded as provincial revenue, it had been gradually incroached upon to such a ' degree that, in reality, only a very small proportion was actually available — such proportion being in great part obtained from Treasury Bills, aud not from actual land sales. Under such circumstances, it was desirable that the subject should be placed on a more certain and satisfrctory footing. With that view, and for the purpose of simplifying the public accounts, they proposed to do openly and straightforwardly that which their predecessors m office had hitherto been doing indirectly and disengenuously. THE GOVERNMENT PROPOSED TO MAKE , THE LAND FUND COLONIAL REVENUE, subject to all the obligations which the colony

had undertaken in respect thereof, such as the cost of admiuistration, survey, immigration, interest on provincial loans, &c. However, 20 per cent, would be returned to the local authosities for expenditure on roads, bridges, and other district works. Further than that the Government proposed to ask Parliament to agree to OXE UNIFORM LAND LAW, by which the public estate, subject to classification, should be sold at uniform rates throughout the colony, whether on a system embracing free selection, deferred payments, or otherwise. But, white thus seinog tb*4uMUw fund, the Government fully recognised tiiat the most legitimate object to which that revenue should be applied was to-rkbaer available for settlement the particular locality from whence it was derived, and inuipporiiau*--** ing the public expenditure throughout tho colony, such au end would be kept faithfully in view. MAIN ROADS AND BRIDGES. The Government had daily brought uudcr its notice the necessity for taking some steps to protect and keep iv repair tho xuaiu roads and bridges of the colony. The counties,' although created specially to do this work, were unable to grapple with the difficulties imposed upon them ; and if the Government found it necessary to solve the difficulty by undertaking the work, they would do so, even if they wore obliged to divert a portion of the subsidies to the particular district. T " ' '' t REDUCTION IN MINISTERS* SALARIES. A laudable curiosity had been expressed as to the reduction which it was proposed to make in Ministers' salaries. In 1873 these salaries were raised from £1000 for each Minister to £1750 for the Premier, and £1260 for each of the other Ministers; and it was proposed, to return to the original sum of £1000 each', Itj dealing with the civil list it would be tho objecT" of the Government to maintain the' efficiency* of the service aud not to cut down the salaried of necessary officers; but they believed tnafbv* consolidating offices a largo saving in the annual expenditure could be effected. Tim Government also proposed to SELL EITHER THE HIN'EMOA OR THE STELLA. They had not decided which boat to 'dispose of, but the sale would be public nnd not private. RAILWAYS. The Government looked forward to beinft able to submit to the House next session wellconsidered proposals, based upon souud data! by which iraportnnt districts might be opened up nnd conuected with the main Hues by means of branch lines, to be constructed out of the proceeds of the land thus rendered available for settlement. They also hoped soon to have the report of the committee appointed at the begiuning of the session to inquire into railway management, from which they hoped to obtain much useful information for their guidance. If it were considered advisable to '{case any lines, with the object of saving expenditure, the Government would not hesitate to ask the House to agree to such a course.. They belie Ved that there was room for considerable reduction in the present cost of railway management. While upon this subject of railways he was compelled to call the attentiou of the House to a matter of the most serious importance. For the last two or three years the House had been accustomed to hear of revenue derived from railways, but this revenue, was simply the balance of profit over the cost of maintenance and working expenses. It would be absolutely necessary in the future to lay by a proportion of the profits as a renewal-fund. ' With our lightly-constructed narrow-gauge railways this question of renewal was much more important than it was at Home. This wouid form a leading feature in the public works policy of next year, but it was too late in. (the present session to deal with it now. , „ f PROPOSED NEW LOAN. The Government would 131 3 obliged to ask the House to consent to a loan of £4,000,000. They proposed with this to redeem the guaranteed debentures, to provide for all public works and other necessities of the year and for all floating debts now due by the colony; but there was also the £1,000,000 due to the two ' banks which was not provided for here. ' Tho system of raising loaus in London, in Sydney, and in the colony, would be put a stop to, so that there would be but one sort of funded colonial indebtedness, showing at a glance the ontire debt; one current or working account, showing our annual revenue and expenditure under their several principal heads ; the numerous small and mystifying accpunts and balances ht'pWsgnt existing "under the heading of t the tiublic account would be done away with; nnd we should m far as possible have but one creditor—the London money market. The practice of concealing— perhaps unintentionally— tho amount of the cdlotiial indebtedness' by the issue of Treasury bills, nnd the raising of temporary loans in the colonies, had an effect even worse than imposing directly on the Home creditor. It encouraged the of this colony to fancy their liabilities- to lie smaller than they really were, and to agitate for n greater expenditure than the colony could aflbrd. THE INCIDENCE OF TAXATION. During the reces3 the Government would address themselves to the question of a readjustment of taxation, with the view of distributing its burdens equally and fairly upon the whole community. Should the land revenue keep up, it would not be necessary to draw a larger revenue from tho people, but should that fall off, we should be prepared to submit to heavier burdens, to meet our obligations to the outside creditors, and conduct the business of the country. ANNUAL RECEIPTS AND EXPENDIt^IH. With this Statement were laid befor/- the House various tables. No. 1 showed 'thfi estimated revenue from all sources, including the land fund, based ¦ upon (lie state of things which the Government found in existence upon taking office, to be £3,f569/)2(i,'anll the expenditure £4,410,938, showing a deficiency of £711,212. If the revenue fell short of the estimate, as was not improbable, the deficiency would be further Increased ; but as it was, the daily expenditure of the colony was £1926 in excess of the daily revenue. • „¦ THE UNITY OP THE COLONY. Mr. Larnach concluded his statement by expressing the diffidence with which he had undertaken the task set before him, and a hope that in the future he might.devisd a system of finance which should secure a proper equilibrium between receipts and expenditure, simplify tho public accounts, kotisfy the colonial creditor, and do away with internal jealousies and mistrust. The last two sentences pointed ptpongly to tho unity of the colony, saying it would be the endearorof the Government to try to bring the whole of the colony to be content with one united Government, and a united system of finance, without which a wholesome united Government was impossible, j / , The conclusion of the statement was greeted with loud applause.— For. forty minutes the question of adjournment was discussed, Major Atkinson, Mr. M'Lean, and Mr. Donald Reid trying hard to make Mr. Larnach say from what date the Government proposed to appropriate the land revenue— ir it were from 30th June. — Sir George Grey flatly refused to answer the question, which, be said, wai only intended to mislead the House. At last the House adjourned until 2.30 p.m. to-dny. THIS DAY. When the House met this afternoon, Mr. Larnach explained that there were several printers' errors in the figures attached to his Financial Statement, and that fresh tables would therefore be issued. ¦- , , The debate on on the Financial Statement was adjourned until 7.30 this evening^ to* meet the wishes of Major Atkinson, , i Mr. Larnach stated that the Government proposed to take the land fund from the Ist January next. „