THE CLOSING HOURS.

Evening Post, Volume LXXX, Issue 133, 2 December 1910, Page 8

THE CLOSING HOURS.

WORK AT PARLIAMENT. HOUSE OF REPRESENTATIVES-TO-DAY'S PEOCEEDINGS. The House of, Representatives met at 11 a.m. to-day. A technical amendment in the- Shops, and Offices Bill was brought down by Governor's Message and read a first time. The Waihau and Ohinemuri ■ Rivers Improvement Bill was put through committee, Tead a third time, and passed. FRUIT FARMS AND THE FREEHOLD. The Hon. T. Mackenzie moved the second reading 'of the Fruit-farms Setitlement Bill, which proposes to enable <tiie Government to lease some fruit -farms which are already in going order and to set apart land' for a similar purpose in future. The Minister said the Bill had special, reference to. Waerenga. .,.. . . hhC Massey. _said,. it _was significant that the Government wanted to get rid of these farms. If the "G6\ eminent could not make a profit how could private people-be -expected to make a profit? He thought it would be better to have the" land tested for Coal, which was 'supposed to be present 'in large quantities. When the Bill was in ."committee Mr. Hogg moved to' amend clause 2, so as to provide 'that lands 'set- apart 'as fruit farms may only be disposed of by way of lease. "V.ote, vote," said several members, and the motion went to a division without debate," the desire of the House to "get away home" becoming more pronounced every moment. _ . Mr. Hogg's amendment was lost by 43 to 12. Mr. Hogg urged that in view of the jvote of the House in favour oi granting the fieehold to fruit-growers , he could see no reason for withholding the freehold from -Crown settlers on village settlements.. He could only enter an emphatic pretest, , and say. that on this subject the Government no longer enjoyed -the- confidenca of the country. The Government had shown, its hand, ; it desired that all the land ia the country should become private property, and he had no more confidence in the Government's land measures. Mr. Massey urged that the freehold was necessary for the success of these small holdings. Thfi Bill was, then reported without amendment, read- a third time, and passed- without - further -discussion. PUBLIC WORKS. The House then proceeded to debate . the Public Works Statement. WATER POWER. HOSTILE CRITICISM. Mr. Maseey referred to the proposals for the development of water-power, and said he considered the Government's in this respect reckless and extravagant in the extreme. He would like to know where were the details? They had never been, laid before the House, and he regarded the proposals as a leap in the dark. It was not, therefore, fair to ask Parliament to agree to the expenditure proposed. The country only had a small population, and the only example they had to go by was -the Wadpori scheme, which had not so far been profitable, though it might become profitable in future. He found from enquiries that where electrical ■ energy had to be transmitted any distance and coal was fairly cheap then it was cheaper to develop electrical power from coal than, from water-power. The Hon. R. M'Kenzie : Why did they use, ifc in coal mines? Mr. Massey: They develop it from fcoal. He went on to quote scientific magazine articles in support of his contention, and the recent writings of Mr. Black on the subject, and urging that the £500,000 to be spent yearly on the scheme -would cost 8 per cent., he wanted to know how the scheme was' .going to be made to pay Why, he asked, should not local bodies be allowed to do the work if they so desired? • Monopoly coidd easily be prevented. The members of the Cabinet were mostly Scotchmen, •but they did not seem to have Scotch characteristics in the water-power scheme. Mr. Massey quoted from Sir. Holmes's report to support the arguments against the present water-power I scheme. Why did the Minister imagine that the local* authorities would " scrap " existing, steam plant for the sake of becoming consumers of the State at a rate above the present cost of generating power? The Minister had been warned byelectrical - and financial experts against; the scheme as a whole. Mr. Massey fcaid he did not wish to make party ■capital, but it was his duty to remind the - House and the country that Tasmanian 3j per cents were quoted at 99 and New Zealand's 3^ per cents, as a sequel' to the £5,000,000 loan, were down to 96. OTHER SUBJECTS. It was the duty of the Government, continued Mr. Massey, to assist and encourage some local bodies in the makings of loads, and a schedule should be drawn up to indicate- those- that needed help. The present system of grants was unsatisfactory, and it would be a good day for New Zealand when a party arrived strong enough and willing enough to effect a reform. THE PREMIER'S COMMENTS. Sir Joseph Ward, referring to the proposed, expenditure on water power development, said he recognised i-hat in embarking on -such a scheme it was one, that required to-be approached with caution and under the guidance of expert advics. There waf, of course, a certain of risk, but unless risks had been taken-no development works at all would liav» been carried out in the i Dominion. Tins was hot a new kind of project ; it lia'l been successfully inaugurated m other countries by public companies, but lis opinion was that in New Zealand it would be better for the work to be car risd out by the Government, which could gee money cheaper and carry out the de fails at a cheaper i'ate than any private , company. There f-ould be no doubt that if the system was properly carried out lv could easily provide interest and de. Itreciation and sinking fund, arid if that vra^ true he thought the Government was justified in putting one of the schemes int>> practical operation. The Governin ejit would approach the work from .pho standpoint of caution and prudence, and see that only \hb most expert men -wera employed. - "He added some remarks to demonstrate the fact that the development Tvoife at Niagara had beeu eminently successful, showing that tljere was a fear among practical men that the existing power-houses ought not to be increased. A'o other country in the world had suca natural sources of water power as New Zealand, and it was possible to reduce the possibility of risk to the smallest extent Hp. believed th& sta.ee. to be mada In Canterbury jtouM result in a. demand Jor similar development works in other parts of the Dominion, The Government ■was determined to prosecute tha work vigorously, and to " see that, ihe possibility of mistakes was reduced to a minimum FINANCIAL. As to the five million loan, he said the country had every reason to be satisfied with the result. When the Bank of England rate was-5 per cent., .New Zealand floated a five million-, loan at 3^

per cent, at £98 10s. The loan was not underwritten by the Bank of New Zealand; if it 'touched any part of the loan it would not exceed £100,000, and even that was not done at the suggestion or request of the Government. He would : iiot make any such suggestion or request. /The way in which the Joan was floated musfe-be regarded as highly satisfactory., and he had ascertained that those whr. had taken up the loan were not making any losses in letting it out to their clients. For this country to have iU finances fixed for a year ahead was % very fine thing. (Hear, hear.J Leading ■financial men in England had been consulted about the amount tv be put on the market, and he was satisfied that to have called for a lesser sum would not have resulted in such a satisfactory state of affairs. He had discussed tha question with the highest financial authorities, and was told that it would be better to go for a four million loan than for a two-million loan. It was an odious comparison to contrast New Zea land with Tasmania, ' under tne present circumstances. The financial operations of Tasmania for a year were about equal to New Zealand's for a month. It was inevitable that New Zealand's stocks should be depressed while the £5,000,000, after being underwritten, was waiting to be placed out. Tasmania, however, had not been on the loan market recently.