PRE-SESSIONAL.

Evening Star, Issue 7181, 7 April 1887, Page 2

PRE-SESSIONAL.

SIR J. VOGEL AT CHRISTCHURCH, Sir Julius Vogel addressed his constituents in the Oddfellows’ Hall last night, when there was a large attendance. Ho commenced with a warm tribute to the late members, Mr Mao. Andrew and Mr Bradshaw, whose loss ho considered a calamity to the Colony. THE LATE SESSION was a very useful one. As an example, ho would vifer to the consolidation of the Acts relating to municipalities and to those relating to counties. A large number of Acts conflicting with each other in many respects were consolidated by these two measures, and they would prove a great boon to all who took part in the government of the towns and country districts. Tho Native Lands Administration Act was a realisation of an idea that had been welcome for more than ten years. The Government pre-emptive right to the purchase of Native lauds had worked badly, and the abandonment of pre-emptive rights had worked still worse. The happy medium was tho one now open. The Natives may sell through the Government or to the Government, hut not direct to Europeans. He could not avoid a reference to the controversy that was continually goingon as to the relative share of meritdue to Mr Bryce and Mr Ballanco for the happy condition of Native affairs. Mr Bryce’s warmest admirers seemed now inclined to cease to carp at Mr Ballance’s proceedings, and to substitute instead a desire to claim for Mr Bryce the merit of what Mr Ballance had propounded. He (Sir J. Vogel) considered Mr Bryce was a very able man, and possessed of strong character. His great misfortune was the want of a sympathetic disposition. Ho remembered when Mr Bryce, without any preparation or pretension, astonished the House with the first speech he made. It was years ago, but the memory was still in his mind of the thrill of admiration that ran through the House, and of the predictions that were expressed of Mr Bryce’s future. But whatever Mr Bryce’s abilities might bo, it was quite impossible that he could have known what Mr Ballance could do, for Mr Ballanco possessed the confidence of tho Natives to as remarkable an extent as they distrusted Mr Bryce. Perhaps in order to appreciate tho benignant way of Mr Ballance, Mr Bryce’s harsh rule was a necessary antecedent, just as a person took sherry and bitters to make a good dinner. It must not be supposed, however, that Mr Ballanco was wanting infirmness. Although it was his nature to be sympathetic, ho was determined when occasion required it, as was witnessed by his treatment of To Whiti, The Local Bodies’ Loan Act and the Government Loans to Local Bodies Act, passed last session, were admitted to ho most valuable measures. He was able in these Acts to remedy much of the defects in the system of local borrowing. These loans would enable many local bodies to do many useful works otherwise impossible. He had always contended that local bodies must be left independent. Although they might make some mistakes, the very fact of their responsibilities would cure the defects, and tho people most interested, who were disposed to neglect their duties, would abandon the attitude of indifference when they saw they might suffer from it. Both Acts required amending in some particulars. Ho took no blame for it, for ho stated in the House that it would be tlie case. It would be impossible, whatever care might be taken, to finally deal with two such measures in one session. To automatically give from time to time FAIR REPRESENTATION to the districts as they were improved by the industry and enterprise of the settlers could not fail to ho beneficial to tho portion of the Colony in which tho electors of Christchurch were interested, as well as to all parts of the Colony which offered inducements to industry and settlement. He would not dwell on THE CABLE QUESTION further than to say that throughout the long and troublesome negotiations which had taken place with regard to them the Government had, ho believed, the confidence and approval of the country. Coming to tho question of FINANCE, ho regretted that ho was called upon to give an absolute denial to Mr Bryce’s statement that tho Sinking Fund had been seized. The operation to whrch Mr Bryce referred was not of the character he described by his words. What the House had decided to do was to allow the Sinking Fund to run on as usual and to create debentures equivalent to the amount of the increase in the hands of tho Sinking Fund Commissioners to recoup the Consolidated Revenue for the large amount that was being paid to Sinking Fund Commissioners. Owing to the many years which tho Sinking Fund had run, it was found that the Colony was paying out of Consolidated Revenue a very large amount for annual redemption. It was obviously folly that it should do this whilst it was at the same time borrowing. Still, it bad to precisely fill its engagements. It did so, and it was a gross calumny to call the operation a seizure of the Sinking Fund. He might give as an example the drawing loan of 1807. Tho Consolidated Revenue was contributing nearly 19 per cent, annually towards the payment of interest and extinction of the amount outstanding. Provision was also made for] laying off the debentures created as he had described, and out of L 750,000 of debentures which had been created during three years, L 344,000 had already been paid off. Mr Bryce was quite incorrect in saying that these provisions had affected the Colony’s credit, for when the first loan after they were brought into effect was negotiated the Agent-General issued a paper in which he carefully described the operations; and not only did that lorn go off well, hut the loan following, issued about the same time as the loans of other colonies, fetched a better price than tho loans of Victoria, Queensland, and South Australia. Tho fact was that Mr Froude’s book (which had an enormous sale), certain articles in the ‘Standard,’and statements by a few colonists such as he had contradicted of Mr Bryce, were used by persons on tho Stock Exchange to “ bear ” Now Zealand stocks. He expressed a doubt last year whether the estimate of Customs revenue would be fulfilled. He was sorry to say that the receipts were L 120,000 less than the estimate, and the estimate was less than the actual revenue of the previous year. He had before pointed out the reasons why the Customs revenue was failing, and in what respects it required to be increased. There was a net loss en revenus and expenditure on railways, as compared with tho estimate, of about L 70,000. Still ho hoped that when the accounts were made up the results of tho year would come out better than might be expected. As regards RETRENCHMENT,

as persons were in the habit of accusing him of being extravagant, he might point out that the Colonial Treasurer was the Minister most anxious to save expenditure. It was his business to save, and it was the business of the other Ministers to spend money. He had given the question of retrenchment constant attention since the last session, and the Government had laid the foundation for a cheap service in the future. He had explained that the so-called “ circular ” had been misrepresented. It had been one of several Cabinet decisions in favor of reducing the cost of the service. By omitting the opening words of the sentence, “No increase of salary to be given,” it was made to appear that the promoted officers would have less salary, whereas the proviso was simply one to limit the amount of increase so as not to bring it up to that of the vacating officer. As a professional service the Civil Service was not an expensive one; but if length of service and other questions were not to be taken into account the service might become much cheaper, but it would be a vehicle by which good men would be trained up to leave for other services. A full explanation of the views of the Government would no doubt be given with the Financial Statement. Meanwhile, as an evidence that the subject was not neglected, he m’ght mention that a consolidation was proposed which in the future would have an enormous effect. It was resolved to consolidate under one department, to be called the Treasury and Inland Revenue, the departments of the Treasury, Customs, Marine, Post and Telegraph, Stamps, Property Tax, and Land Transfer. The Minister and head officers of each branch would form a board to meet periodically, with the object of arranging that the officers of the various branches should work interchangeably. If beyond the retrenchment in the Civil Service further retrenchment was required, they must look to the objects. The two great spending departments which did not return revenue wore Defence and Education. Ho did not think that the country, after the last war panic, would be inclined to relent the attention which was being paid to the defence of the Colony. His view that the Education Department was too costly was well known, but ho was bound to say his opinion did not seem to bo that entertained by the majority of the colonists. He regretted to see suggestions about reducing the number of members of the House. He thought that it was a mistake to fix so high a number originally, but, that number being fixed, ho thought they should hesitate to reduce. As to the honorarium received by members, he was sorry to see that some persons appeared to bo favorable to its reduction. When the time members gave in and out of the session was considered, 4he payment they received must be considered moderate. It was less, he believed, than given anywhere else, and the system of paying members was certainly gaining ground in different parts of the world. Unless they wished to be governed by rich people only, and relinquish their freedom and liberty, the colonists should pause before reducing the honorarium. Let them judge the results. No ono who had studied the debates and proceedings of the House could fail to recognise that the members as a whole were most capable and hard-working men, of whom any country might be proud. He thought ‘Hansard’ w'as too costly, and might be reduced. The proceedings should bo more briefly reported, and committee proceedings should not be neglected. Each member should have a certain number of pages allowed him. Perhaps a little more might be given to Ministers and leading members of the Opposition, and beyond that allowance members should be charged, say, 10s per page. He next proceeded to deal with THE BORROWING POLICY. First ho explained what took placo last year, about which so many efforts were made to establish that there was a difference of opinion I

in the Cabinet. It must bo borne in mind that until just before last session it seemed necessary that the Government must make some provision for the commencement of the Midland Railway. Early in the recess previous to last session Ministers had ,como to flic conclusion that it would be expedient to authorise a large loan to be expended over a term of years, say eight or ten. Afterwards it Was decided to reduce the term and the amount to a provision for four or five years ; and finally it was thought better, in consequence of advice from Home, to deal only with the loan required for early wants of one and a-half million. Throughout there was no difference of opinion in the Cabinet as to the policy of borrowing. Coining to the present position', the Government bad before laid down the principle that borrowing should be guided by the natural increase of revenue, and on that fooling it was evident that this was the time for reducing the borrowing. The funds for the North Island Trunk line were nearly provided. The Otago Central must proceed, as also must the extension north of Auckland, and the connection between 'Wellington and Napier. These were large works, and could be expedited as circumstances permitted. The railways now in hand, including the Midland, practically exhausted the lines in which large divisions of the Colony were interested. Loans would now be reduced, not only from fear of responsibility, but because nineteen-twentieths of the Colony would hesitate to borrow for the remaining twentieth, unless on strong evidence of necessity, such as for useful feeders. But borrowing could not altogether cease. There were roads, the expenses of settlement, telegraph extensions, purchase of Native lands, and loans to local bodies. More or less, however, he hoped to see these obtained locally. But because they only pushed on the railways now in hand it was not to be supposed that the railways already made were not beneficial. Apart from tho revenue they yielded, he estimated that, for tho carriage of goods alone, they enriched the people by one and a-half times tho gross receipts, or by about L 1,000,000. The rates changed were much less than might he charged if revenue purposes were alone consulted, He would not go into tho question of railway management further than to say that, in his opinion, if the system of handing over to commissioners were adopted, he thought there should he elected boards to hear complaints in open court and take evidence therein. Management by commissioners on commercial principles might create dissatisfaction, rimall users of the railways would not like to see. preference given to large users; nor would the residents near small harbors like to see rates lowered to take shipping from them. It was very difficult to decide the relative preference which should be given to revenue purposes and to helping settlors. The land returns had now become very small. It was important to remember that in connection with tho revenue of the Colony. He had preferred A LAND TAX AND INCOME TAX to the property tax three years since. They afterwards proposed to assimilate the property tax to a land and income tax by certain exemptions for agricultural improvements and for cost of machinery. The effect of a land tax would bo different now, because the mortgagees had mostly in new contracts charged a-half per cent, (equal to more than a penny in the £ extra) in the way of interest to protect themselves. The unhappy borrowers would therefore pay twice over, besides making up the amount of tax in personalty. There seemed to be a growing tendency everywhere to subject personal property to taxation, as well as real estate, and an income tax would catch the professional men and men receiving salaries, but otherwise would not he productive. Whilst we must not act unfairly to capitalists, we must not bo scared by complaints which lately appeared, and which were unreasonable. The speaker instanced some complaints which lately appeared in an Auckland paper, made by a gentleman just returned from England. Sir Julius then went on to say he was laying facts before his hearers. He could not draw positive conclusions from them at present. Ho considered that the desire which was evident to bring expenditure within revenue reflected infinite credit on public opinion. He had not time to go into the question. It was made a cause of complaint against him that he was too sanguine. He had certainly, in common with many others, better judges than himself, thought the depression would wear away more quickly. No one blamed a doctor for inspiring a patient with hope of a speedy recovery if his treatment was skilful. If he (Sir Julius) had done anything to prolong the 'depression, or neglected anything that would have shortened it, then he would admit ho was to blame. The Government had done everything to make the depression felt as lightly.as possible. They had had an anxious time, and many difficulties with which to contend. The speaker quoted some of the property tax returns to show that the Colony was progressing. Regarding tho DILL FOR TAKING LAND FOR SETTLEMENT, Mr Ballanoe claimed that he had worked out a practical measure to meet a long-admitted want which had been neglected hitherto because of the difficulties surrounding it. Mr Ballanco contended that tho measure would promote settlement, that the Government would bo protected from imposition, and tho owners he fairly and justly treated. Tho Bill did not involve the question of land nationalisation, and there was no reason for making it tho peg to hang on theories. The speaker explained his views on land nationalisation, and said that ho was as much opposed to it as a principle as ever he was. Mr Ballance would bring in a Bill for GIVING WOMEN THE SUFFRAGE. It would not be a Government measure. Although nothing immediate would arise out of tho COLONIAL CONFERENCE, he considered it a matter of vast importance, and greatly regretted that the Premier had not been able to attend. The question of colonial and Imperial defence would probably be the chief one. Whilst the Government had offered to submit to Parliament a vote in consideration of two vessels being permanently stationed on the New Zealand coast, they had declined to enter into any arrangement which would put the Australian colonies on a different footing to other parts of the Empire. There had lately come under his notice some facts that greatly astonished him concerning the very large contrffutkm to the taxation of Great Britain which tho colonies were now making. He found that the Colony had paid over LBO.OOO during the last fifteen years for stamp duties on debentures and stock, independent of the stamp duties on local bodies’ loans. But through tho income tax much larger payments were made. He estimated that on properties situated and profits made in New Zealand no less than L 50,000 was contributed to the income tax this year, and this was not counting profits made in England on Now Zealand transactions, He estimated that from the Australasian colonics the English income tax directly and indirectly gathered little short of half a million. He thought it desirable to submit this matter to tho delegates for consideration, if not In connection with any claim for return, at any rate in connection with tho question of colonial contribution to defence. The Agent-General had telegraphed his warm approval of the suggestions. He had communicated tho matter also to the Colonial Treasurers of Melbourne and Sydney. The former Intimated that it would be considered by the Cabinet as early as possible, _ He had also suggested that the question of a decimal coinage should bo brought before the Conference. He had already alluded to the difficulty in framing

THE MIDLAND RAILWAY CONTRACT. Ho felt himself at liberty to say that it was conceived in a spirit equally liberal to the Company and beneficial to the Cclony. It was not yet accepted in England. He believed the directors were waiting the arrival of Mr Brodie Hoare. He hoped to hear of its acceptance in a few days. The chief features were, briefly, that the whole of the area was made available as it was required for the payments to the Company, the alternate blocks for the Government for use for the miners, and 50,000 acres for special settlement. The great expense of unnecessary surveys would be saved, and the miners would have free and uninterrupted opportunity for prosecuting their labors; so that the land would not be taken until it was absolutely wanted for settlement, and all land found to be required by the miners would be reserved for their use. It was like giving them some years to discover if the land_ was required for mining, instead of compelling them to select it at once.

IN CONCLUSION he wished to lay before them food for reflection and consideration. While he had not given detailed statements as to the probable Parliamentary proceedings, he had said enough to enable them to arrive at the conclusion that the measures most demanding consideration wore the Representation Bill, a Bill to smooth the working of Government loans to local bodies, a Bill to promote settlement, some measures to which he had not referred relating to the criminal laws, and not the least important that the condition of the finances should bo thoroughly considered, the nature of taxation reviewed, and the expenditure of the country adjusted to its revenue.

A vote of thanks and confidence was passed unanimously.