OPINIONS ON THE BUDGET.

Evening Star, Issue 9773, 1 August 1895, Page 1

OPINIONS ON THE BUDGET.

HOW MEMBERS VIEW IT. [Fkom Odb Pabuambntaby Rkpobtjjb.] WELLINGTON, July 30.

Immediately the House rose after the Treasurer had delivered his Statement last night I made a point of seeing a number of members, in order to ascertain how they received the Budget proposals. Appended are the opinions, which, of course, were expressed after a hasty perusal of Mr Ward’s Blue Book, and with a certain amount ot diffidence in some instances The senior member for Wellington (Sir R. Stout) said that he did not consider the Budget was any clearer this year than formerly. The public accounts were already simple enough to anyone who took the trouble to study them. Ho considered that a prominent feature was the: mcreaseof the net debt by £670,000 odd. The additions to the debt had shown an alarming increase of late years. In 1891 tho moreMe was £60,000; m 1892! £351,000; in 1893, £468,000; and last year £730,000. No doubt this continual borrowing added to a falling revenue and the increase of duties by the Goverumeut. had lead the Treasurer to propose

an all-round increase of taxation. Sir Robert objects to tho proposed mode of increasing the death duties, as a widow who inherited her husband’s property might have earned part of it. Ho does not approve of tho proposed allround increase of Customs duties on articles of apparel that are not made in the colony. The reduction of Id per lb on tea he regards as utterly useless, and the either reductions would practically be of little effect. Some of the duties put on he regards as simply ridiculous. For instance, We do not import potatoes, yet a duty of £l per ton is proposed. The duty of 10s a head on horned cattle he also considered absurd. The .increases of Customs duties go, Sir Robert say?, to verify his prediction of two years ago, that the colony would have to pay for its whistle. He believes that the probableiccreaseof Customs re venue is greatly under-estimated, and that it would bo nearer £75,000 than £IO,OOO. The new burdens now sought to be imposed he considers outrageous as compared with those of the Stout-Vogel Government in 1885, which the House rejected, but he supposes the present House will n6t hesitate to pass these proposals. If the House gives the additional revenue the Treasure! seeks it will be very easy for him to show a surplus at the end of the year. In conclusion, Sir Robert said that the Budget proposed to seize £27,000 of the sinking fund belonging to the Government loans to local bodies. This proposal was entirely at variance with the statement that our public debt should be gradually extinguished, aud it was at variance with the Loans to Local Bodies Act of 1886. He did not think when the House passed the Act of 1892 that sinking funds could be seized under it.

Pessimistic was the tone adopted by Dr Newman (Wellington suburbs), who is regarded as a financial expert. The hon. gentleman ex* pressed himself thuslyThe present position of our finances forms ugly reading. The revenue for 1894-95 shows a fall of £17,000 in railways, and £85,000 on Customs, compared with the previous year. The fall in Customs,since March 31 last is appalling—impor s for the June quarter being £1,000,000, as against £1,600,000 in the corresponding quarter of 1894. The public debt has increased during the year by £560,000, and, for the first time in the history of the colony, its net indebtedness gets over forty millions sterling. The deficiency bills are very high, reaching £BIO,OOO, in addition to which the Treasury till is nearly empty. It is . plain that the cash in the Treasury for Public Works is all gone or is needed to cover existing liabilities, while the North Island Trunk Bailway million is almost exhausted, and the outlook for the current year generally is a trifle disheartening. The revenue, which showed a shortage last year, shows a further shrinkage this year, and while our debt is bulging out the surplus is shrinking. In short, we are going from bad to worse. Last year £150,000 was transferred from the Consolidated Fund for public works, but the amount has this year ‘dwindled, and it looks like disappearing altogether in the near future. Coming to tariff revision, I am of opinion that the Id per lb on tea will he all frittered away between merchants, middlemen, and storekeepers, and will not benefit the consumer or taxpayer. The reduction ought to have been 3,1. The reduction of one-sixth the duty on kerosene likewise will benefit only the merchant and the storekeeper. A duty of £1 a head on imported horses and 10s on cattle resembles tlie Victorian stock tax. At the first flash oiie wonders why the tariff Las been tinkered with for such little changes, unless it he that a promise of revision had been given to the House and had to be kept. The tariff proposals arc certainly more reasonable than was generally expected, but probably the New South Wales elections account for this. As to the policy proposals generally, they are so few and so unimportant as to offer no criticism. The Statement itself may be regarded as colorless, and certainly aroused no excitement. It clearly tolls, however, that the country will again be called on to assist the Bank of New Zealand, involving the colony in still deeper responsibility. I am a great believer in reciprocal tariffs. The increasing of death duties simply means the taxation of the hard-earned savings which a ufeu leaves to his widow, much of it frequently being due to her own toil. Mr Saunders (Selwyn), who is tho patriarch of the House, regards the Budget with satisfaction, stating that its tone is more prudent than last year’s Statement. The “wild cat,” ho considers, has been killed by th» Treasurer’s visit to England. A very good proposal is that of extinguishing the whole public debt. By means of such a scheme wc should rave annually a larger amount than Would be paid into the sinking fund. The Statement is a high testimony to the Treasurer’s ability, and shows that he has learned a great deal by mixing with sound financiers in England. ■ Another trip to England would do him good if he rubbed up against leading Freetraders. The member for Selwyn considers that there are some .objectionable features in the tariff proposals, but ho declined to iro into details till he has had time to examine them. He was very sorry it was proposed to increase the Customs duties at all. The remission of a penny per pound on tea would not do any good, and the expenses of collection would remain as at present. Like most other members, Mr Button (Auckland) is very cautious in expressing his views on the Statement at this early date. It embraces so many topics of importance that ho considers it would be not only improper but impossible to give anything but a very general opinion on it as a whole. The details will have to be carefully studied separately and compared together before anyone can conscientiously decide regarding them. One thing that strikes Mr Button particularly is that the tone and the manner of the present Statement contrast with that of last year. He does not commit himself to express the opinion whether it is better or worse than Mr Ward’s Blue Book of last year, but simply says that so far as he can see there are matters for congratulation in it aiql matters of a very opposite character. He considers, on the one hand, that tho Budget is singularly free from sensationalism, but, on the other band, that it makes up for this good trait by a great deal of padding. The proposal to make gifts to widows liable to legacy duty he looks on as a great mistake.

Disappointment was the general impression produced on the mind of Mr G. J. Smith (Christchurch), who said that the financial outlook, taking the Treasurer’s own figures, was not very encouraging a rapid increase of debt) a falling revenue, and increased taxation being its main features. The reductions in the tariff on the necessaries ot life were simply absurd, as they would only swell the profits of tradesmen, and would not benefit the general public one iota. The increases would not do much to encourage local industries. Some of the proposals hinted at—as, for instance, the proposal that the succession duties should be increased for the purpose of paying a subsidy to the Vancouver service—will need very careful consideration. The tariff proposals, he said, were being received with a good deal of amusement by members generally. Mr Col!ins (Christchurch) was more optimistic in his criticism than his colleague. He thinks the country may well congratulate the Treasurer on being able to present such a satisfactory Budget in spite of hard times and a falling revenue. He thinks that the rabid Protectionists will be as disappointed with the tariff proposals as the out-and-out Freetraders. The proposed reduction on bulk tea of a penny per lb will scarcely benefit the consumer, while it will put nearly £IB,OOO iu the pockets of the middleman. The Budget was reassuring as to our present condition and full of hope aud promise for the future.

Mr James Allen (Bruce) considers it a most uninteresting Budget as read, although there is plenty of material to make it exciting. It shows that our finance generally is. coming to dangerous ground, inasmuch as the public works funds are coming to a vanishing point, and can only be aided by diminished transfers from the revenue account. The public debt also is slxown to be rapidly increasing. The reciprocal treaties arc disappointing to him, as they embrace so few articles, and, in the case of South Australia, there is a restrictive clause preventing our making terms with others. Our own ■tariff increases arc also distasteful, and the raising ot extra taxation to the tune of £IO,OOO through the Customs is very unwise inhis opinion. In fact, the Budget consists of a considerable amount of padding, which covers extra taxation by succession duties and Customs. The present year’s Estimates disclose the fact that after providing for the Supplementary Estimates the year will not unlikely end badly, and certainly the old policy of aiding public works from revenue must soon end. Under such circumstances, how the Treasurer can provide a sinking fund to pay the increase in our loans through conversion and also return to the old policy of providing a sinking fund for the loans them-

' selves, Mr Allan cannot see, ranch as he would , like to sec something done in this respect, j Mr Duthie (Wellington) found fault with the ; undue length of the Statement. The contents, j he said, were extremely tame, and fell ti&t on the House. He could not see in it a raj of hope or relief from the depression that hangs over the colony. The two intcicolonial treaties would have little appreciable effect on trade. He regarded as unsatisfactory and ominous the steady increase in the public debt and conversion of consolidated stock debentures into inscribed stock. The proposed increase of the succession duties was uncalled for and unjustifiable. The reduction of the amount proposed to be transferred to the Public Works Fund would give a sum far short of what would be required iqr the public works of the colony, and the Budget failed to meet the necessities of the unemployed. The Government find themselves helpless, and aro_ content to let matters drift. That is the only impression that can be formed after hearing the Statement read. The estimated surplus of £30,000, with the Supplementary Estimates to-provide for, would be altogether insufficient if the Government did not expect the tariff alterations to yield a larger amount of revenue than is stated. He himself is certain that such would be the result. He could not conceive that the proposal to take the sinking funds to extinguish the debt would be acceptable to such Conservative persons as English investors, who preferred that the capital should remain untouched. He had no doubt that Mr Ward mu>-t have had some conversation with English financiers on the subject, but he would be very much surprised to find that the English financial authorities approved of a scheme such as that outlined in the Budget. An experienced parliamentarian, and one who has held Ministerial office, asked that his name be not disclosed in connection with his opinion of the Budget, and added : It is very difficult, immediately after bearing the Statement read, to express a decided 4 opinion on it, and I would rather not say anything hastily. Perhaps 1 cannot at present realise the benefits that may be apparent in the Budget. I look on the reduction of Id on tea as revenue thrown away without doing any good to consumers. Altogether, at first blush I cannot say that I am pleased, bat rather the contrary.

Mr Crowther (Auckland) considers the financial position satisfactory, and does not see anything to complain of in the alterations in the tariff. He expected that heavier duties would be levied. He views with great satisfaction the proposal wi’h regard to the conversion of loans of local bodies, but, on the other hand, he hears with much misgiving the intentions of the Government with regard to the Estates Company. One important difference he notes in the Statement this year compared with that of last year Is that the Treasurer now seems converted to the advisability of setting up sinking funds in connection with loans. Mr Crowthcr looks on this change ot opinion as the result of the Treasurer's visit to tho Old Country. The treaties with South Australia and Canada he docs not think will benefit us in any degree. The price of labor here would, lie thinks, make it impossible for us to supply Canada with woollen goods at a profit to ourselves. 'The subsidy of £20,000 to the Canadian I'acilic steam service seems to him somewhat large, but he is not prepared to question the wisdom of it. He notes with great satisfaction the proposals of the Government with regard to the development of the mining industry, but, like Mr Button, he objects to legacies to widows being subject to heavy taxation. One thing that in his opinion speaks volumes for the (iovernment is the large diminution of indebtedness per head which has been effected.

Mr J. A. Millar (Chalmers) said: The items that strike mo as being of the greatest importance arc the proposals to convert the loans and create a sinking fund for the ultimate extinction of the public debt; also, the proposal to give loans to local bodies to maintain the main roads will lie a boon. I approve of the reduction in the duty on tea, rice, and kerosene, but wish the Treasurer could have gone further. I approve, also, of the admission of the raw material for manufacturing purposes. Altogether the Statement has nothing startling, and I believe it will be approved of by tho country.