THE FINANCIAL DEBATE

Evening Star, Issue 12261, 30 July 1904, Page 7

THE FINANCIAL DEBATE

[From Our Paruamentary Reporter.]

W ELLINGTON, July 50. There was n di> inclination to “face the musicwhen the adjourned Financial Delate wn s lunched yesterday afternoon, the disposition seeming to he to await the full galleries and limelight ”in ihc evening. It was not . ill the Premier was called on to reply that half a dozen members jumped to their feet to avert flic threatened collapse. Mr Speaker's eye rested on Mr J). Reid, who dealt at some length with the question of bimetallism from Jie silver standpoint, and quoted from the * Investors’ Review’ and the •Economist’ to show that it was impolitic to face the London market at present for Joan purposes.

Mr Jennings found fault with the. tendency of the Government to import their higher paid agricultural experts, instead of selecting the very brightest lads from the principal schools of tno colony, and '•ending them to the Old Country for education at the public expense. Mr Hamm twitted members who protested against further borrowing with being amongst the most clamorous of those who asked for expenditure on roads and bridges and railways in their own particular districts.

Mr Duthic began by finding fault with the diverse subjects, embracing practically every nutter nnrlcr the sun, contained in fbo so-called Budget. While borrowing was continued, and recurring debts had to be renewed, the country was in a highly dangerous position. Tno finance of °thc country’, he contended, had drifted ii to a weak position, dependent too much on the state of the British money market. With tho money that had been at his disposal during his twelve years of record Premiership, Mr Seddon had not roaded ihc back blocks nor opened up the countiy to anvthing like the extent ho should have done. As to the subsidised South African ,-ervice, Mr Duthie quoted the cargoes carried in support of his contention that, while it cost £50,000 a year, the colony was not benefiting from it to tho ixtent <f one-third of that sum. What had the Government to show for the largo sums that had passed through their hands? Comparatively little, for money had been squandered, and tho Public Sen-ice packed. He condemned the importunity to wltich members were subjected in connection with applications for works, instead of such works being gone on with when they were for the benefit of the colony. Tho Minister of Railways' followed. In reply to the gloomy picture presented in regard to the increased indebtedness of fhe country, be gave a list of the colony’s assets as a set-off. The resourcefulness of tho countiy was shown by the fact (hat during the last thirteen years a sum of £3,755,000 had been transferred from ordinary revenue to the Public Works Fund, which could not bo said of any other country south of tho Line.—(Ministerial cheers.) *As to tho complaint of fictitious’values in regard to the Valuation Department, Sir Joseph stated that tho Government valuation was from 35 to 50 per cent, below tho values which the owners of the land had asked, as was shown when cases had come into court. In 1894 the Leader of the Opposition had predicted financial disaster, "and urged a non-borrowing policy. That prediction had been falsified. In regard to his advocacy of non-borrowing Mr Massey had turned a complete somersault, and now urged borrowing within the colony. The M.nister admitted that some years ago he had counselled the creation of a sinking fund of 1 per tent., but that meant at the present time provision for £575,000 per annum on existing loans, and he had come to the conclusion that, while borrowing continued, a sinking fund was impracticable. As to tho High Commissionership he contended that it. would bo unwise for this colony to lag behind other countries

lit T'Sgafd to thestanding of her principal representative at Home. The question ought to be treated seriously, and not made light of. Members who professed to regret the increasing expenditure on public buildings were charged with insincerity, and were challenged to enter into a compact to dispense with any new public buildings for tho nest three vears.

Mr W. Prascr launched out by congratulating tho House on the moderation of tho leno wliich had pervaded the various speeches, and to the welcome absence of references to the “wretched past.” In his Budget the Premier had lost a. golden opportunity in not presenting a plain, unvarnished statement of the colony’s condition, for its prosperity was undoubted. The real surplus (less the transfer of £125,000 to the Public Works Fund) was £649,000. He was strongly opposed to providing money for Public Works Fund and other purposes by means of short-dated debentures.

Mr Buddo, after listening to tho criticisms directed against the Budget, bad arrived at the conclusion that all that could be said against it was that it waa very long, but that it contained some very good proposals. Tho ideal system was to borrow within tho colony from surplus funds. He supported the Government in regard to short-dated debentures. Regarding tho land, ho held that seiurity of tenure was of more importance tho.u the question of Freehold v. Leasehold. His contention ‘hat in the open market ton oilers would be received for the Icasedn-perpetuity section caused a bowl of dissent from tho freeholders, headed by Mr Massey; but Kaiapoi stuck to bis guns, remarking: “ Tbs lease-in-perpotuity Ls the most marketable commodity in real estate in the colony today.” On the Defence question he ox ; pressed tho opinion that too groat exactions were made on the volunteers; and ho warmly defended the Oovemment for what they had done in regard to education. At midnight the debate was adjourned till Tuesday.