HOUSE OF REPRESENTATIVES.

Evening Post, Volume LXVIII, Issue 49, 26 August 1904, Page 2

HOUSE OF REPRESENTATIVES.

IMPREST SUPPLY. After wo went, to' press yesterday the House went into Committeo of Ripply on an Imprest Supply Bill for £6M.88°The sum was proposed to be allocated as follows :- Consolidated Fund £300,000 Publio Works £160,000, Loans to Local Bodies £2000, Lsnd for Settlements £1000, State Forests £6000, State Coal Mines £8500, Scenery ll > re" r .^!" n £1000, Pueroa-Waihi , Railway £12,000, Hutt Rwd and Railway £6000, Government Insurance £7600, Government Aocident Insurance £1000, State Fire Insurance £600, Publio Trustees i Account £1000, Advances to Settlers £45,350. Mr. Ja«. Allen referred to the recently published nuurterly accounts, and aaked how tho £303,000 wider th 6 hcadmg of investments was distributed. Ho felt certain that it wns not invested in Imperially guuranteed debentures. He disagreed wjth tho Government's pohoy qf tying up in inyes^epts tho cash of the Consolidated Ftrhd/ 1 * Ho'alfio wanted to know ou what date the/ loan agents in London had invested iWO.OOO of loan money in 3 percent, stook, and 4 what dnto they similarly invested £10,000. He pointed out that the Publio Works expenditure had materially decreased, during the 'quarter. Mr. Allen also asked the Premier to give information regarding tho terms made with tho London Stock Exchange in connection* with the flotation of the last loan of one and a quarter million, atd whnt arrangements were made on behalf of the colony. Mr. Herries asked for information regnrdmg the terms on whioh the Government hud secured the temporary advances with which it renewed the snort.dated debentures thatifoll due. Owing to the necessity for obtaining these ndvancos the Publio Works had been starved, and in tho June quarter ' the expenditure on public works was tho lowest for threo yeitrs. Tho Premier, replying to Mr. Herries, stated that tho. renewals which fell due in April and May wore for debentures issuea in 1901— during the South African War— nud the financial conditions then prevailing justified him in holding that the issue of short dated debentures wub sound finance. With respect to tho criticisms by Mr. Homes and Mr. Jus. Allen regarding Publio Works expenditure the large expenditure on publio works must come down to tho limits which Parliament has fixed. The Government was not going to borrow moro than thrce-quartors of a million. .He believed that prudence In Publio Works expenditure was ensential to the safety of the finance of the colony. It would be suicidal to ask for a large Publio Works expenditure. Respecting Mr. Horrlefj's stutemonb that tho Colonial Treasurer must have been iv a tight place in the first, part of this year, the Premier urged that therefore tho curtailment of Publio Works expenditure was Justified. As long as hu was Colonial Treasurer ho was not going on with a large Publio Woiks expenditure. If the public wero not aatiafiod, and if they wanted a largo Publio Works expenditure, they would have to get some one elso. The colony was prosperous, and Its flna-nces were sound, but there were circumstances outside tho colony which would cauio a lurgo expenditure to lead to disaster. He denied that there had been any starving of tho back blocks ; there had been a very fair expenditure in proportion to population. They only proposed to borrow £750,000, and to borrow a million this year was as much as tho colony could do. Mr. Taylor asked for information regarding tho State Coal Mines which had so for proved an unsatisfactory experiment. Tho Minister for Mines snid that It , was perfectly impossible with tho recent*

ly 'fecquired mine* to supply nil tho demands. The Government had to go carefully, as a large expenditure- was involved. It was impossible to supply one section 'of the community to tho disadvantage of the otheis. He considered that in the circumstances tho Government had got a good return for it« money. The objoct of the Government — in the State coal mines na in other State Departments — was to prevent n, monopoly and prevent the public from being fleeced. Mr. Burbor urged that tho Government should cany out tho promises given by the Premier in introducing tho State Goal Mines Bill that the people should get the oonl at the lowost possible prico. The Picmier repeated that tho Government still adhered to its original intention with rehpect io tho Stuto Coal Mines. Tho Leader of tho Opposition denied (hat the Public Works expenditure could not be increased. lie made this offer — that if the Government would cut clown tho general expenditure by it, reasonable amount, and hand over this amount to the Public Works Fund, ho and the Opposition Purly would iißSist him. Extravaganco obtained moro than ever in the Statq Department*. Every Sta'to oxperiment had been a fojlure and n, costly burden on the country. The Government's custom waa to experiment and expend first, nnd think afterwards. After further debate Mr. J. Allen again referred to tho Imperial guaranteed debentures, aud declared that Iho Government's policy waa to load up all the Funds— Lands for Settlement, Publio Works, etc. — with paper. Even the balimco of the Consolidated Fund contained paper to the value of £303,000. This method of finance was entirely opposed to that laid down aa sound finance by Mr. Ballance. The Colonial Secretary said tho Government ami' the country ought to be congratulated upon tho. fact that New Zealand had been able, to get through the finaninl difficulties that had beset other countries and como so close to our shores. The debate was continued at great length, and the Bill was put through all its stage* by half-past 11 o'clock. HOKITIKA HARBOUR BOARD. The Houso went into Committee on tho Hokitika Harbour Bonrd Empowering Bill, which proposes to empower the Hokitikn, Harbour Board to sell its endowments to pay off tho mortgage. Tho Bijl was reported with amendments. STRATFORD HOSPITAL. The Stratford Hospital District Bill was considered in Committee, but no progress was mado. Tho' Houso rose at 0.55 a.m.