TARANAKI ELECTION.

Hawera & Normanby Star, Volume IX, Issue 1698, 10 August 1887, Page 2

TARANAKI ELECTION.

MB. KELLY AT NGAIRE.

There whs a small attendance at Ngaire on Monday evening, to hear Mr. Kelly's address, owing, no doubt, to the weather being very wet and cold. Mr. Sanders was voted to the chair, and introduced tbe candidate.

Mr. Kelly said he was a candidate contrary to his own expectation, but bis friends had urged him to come out, not being satisfied with the candidates who were out ; and he had, in consequence, acceded to their request. Addressing himself to political subjects, be said tbat while he admitted that

TARTY GOVERNMENT

bad not been altogether satisfactory, still he had no reason to approve of a radical change, especially when he remembered tbat as time went on the system was improving. He pointed out that by the present system of a Premier selecting his own colleagues as a Cabinet, and being responsible to Parliament, there was secured unity of purpose and administration ; and, moreover, under this system there were greater facilities for publio opinion being impressed upon the Government of the country than there were under any other system that he knew of. Here the power of Parliament wns supreme, and it rested with the people to make the Fardamenttv beneficent power in Urn State ; and though there was no appeal from the decision of Parliament, whereas, under the American system, that being a written constitution, there was an appeal to the courts of the land, against the action of Parliament, in England nnd these colonies, the constitution was from time to time easily modifiod by the wish of the people, whereas iv America it was extremely difficult to alter the constitution. The functions of the Government, under the British constitution, were at one time very much restricted, only including that of maintaining order ; but now, especially in the colonies, the functions of the Government included various duties, such as educating the people, settling the land, insurance, banking to a certain extent, and so on ; and the tendency was that the Government should undertake still further duties and functions. Tbe Government was practically carrying on a large business for tbe people, and now wben tbe pinch bad come, and tbe demand for

RETRENCHMENT

bad ariaen, the question was whether the Government' should restrict tbe services rendered. Should it close telegraph offices, post offices, courts, and reduce railway conveniences. So tbat wben large retrenchments were demanded the people had to consider whether they would have retrenchment at tbe expense of conveniences now enjoyed. Speaking of the public debt, he said it amounted to 30 millions, uf which only £14,000,000 however bad been spent on railways. These were doing good work. Owing to tbe smallneßß of tbe population, tbey did not directly return much over working expenses to pay interest; bnt tbey were uf great indirect, benefit, for produce and supplies were now conveyed at something like a fourth of what their conveyance bad cost previously. At one time it cost something like £8 per ton to cart goods from New Plymouth to Inglewoud, but now it did not cost much more than as many shillings. Three millions had been spent on roads and bridges, and here again, though them was n<> direct return, th- indirect return quite justified the expenditure. In a lesser degree the expenditure on telegraphs and public buildings was also justified. He estimated the total indebtedness, public and piivate, at £89.000.000. aad the interest annually sent borne was about three and a half millions. This was felt severely, owing to tbe reduced prices of produce. All tbat was needed to give relief was an increase in the price of butter, meat, and wheat. Tbe general taxation had not materially increased since 1879. though local taxation bad. He instanced the partial transfer of hospital and charitable aid to localities, and said he believed it would before long be wholly thrown ou to localities. As to retrenchment, the only way he saw of making reductions in the civil service would be by amalgamating departments. He would do away with the Native Department, and , hand over its work to the Colonial Scoretary's ; and also abolish the Public Works Department, whose duties were now small, and hand over its functions to the Working Railways Department and Survey Department. He said there had been gteat losses in the past owing to friction between the Public Works and Working Railways Departments, and there was no reason why there should longer he any separation between them. He would group all revenue departments — such as the Treasury, post office, 4c. — into one department; Colonial Secretary*, justice, education, etc. into another ; and mines, public works, working railways, and defence into another ; and by grouping these departments there would be no necessity for many officers now employed. Having done this, he would revise all salaries, for, as the people generally had to suffer, there was no reason why the civil servants Bhould not submit to reduced incomes. He advocated a reduction of the Governor's salary by £2000, but that could not take effect for some time. But there should be an immediate reduction of Ministers' salaries by 25 per cent., their travelling allowances ftuoultl be vednead by one-halt, and Ministerial residences should be got rid of. He would reduce tbe honorarium of the House of Representatives by 25 per cent., and the Council by more if members would submit, but he wan afraid they would require the Raine as members of the Lower House, although they did not deserve it. They held tbeir positions for life, and the lives of councillors were long. (A laugh.) He thought the expenditure on defence had been excessive, but it was no use cryiog over aoilt milk. Tbe ports would have to be manned, but expenditure mii3t be reduced. He had no sympathy with the talk about declaring independence, feeling that it was an honor and vd vantage to be connected with the mighty Empire of Great tiritain. Futting all patriotism on one Hide, wo should, if independent, bo so weak that some of tbe Powers would soon come along and make us dependent again, and we might not find tbe change iigrocablt'. therefore be would approve the expenditure of a moderate sum on luuil ilcfcnct', provided that tbe Home GovfiiinuMit took the responsibility of hhi (lffenct'B. Among other expenditure which might bo reduced was ocean mail BorviceH and printing.

LAND QUKSTION. He approved of tbe State opening up land for fftle by making roads and bridges and if uecessary, would borrow for the purpose. He would allow people to choose their own title by paying for cost on a deferred payment or takiug up perpetual lenses. He believed the deferred payment system was the best. As to village settlements their success depended entirely on the quality and position of the land. They must be on good land and near tbe vioimty of publio works or of large employees of labor. Otherwiso they would be a failure.

EDUCATION.

He spoke strongly in favor of the people being educated. It was necessary for the political and commercial interest* of tbe country, tbat the children of all, rich and poor, should receive primary education nod have sn opportunity of receiving higher education. It was of advantage to the individual and tbe State that bright children should be educated to

the highest point possible. It .was said that State education was coetly^'and that if it were done away with as a Stale fanetion, the property tax could be saved to the taxpayer, but that was a half truth. The property tax in Taranaki Education District was JE7500, whereas property tax arising in the same district was ooly .£2200, bo tbat tbe property tax here did not pay lor education. He estimated the cost of primary education, including native and industrial schools, at £368,000, and the high schools £3500 a year so far as consolidated revenue was concerned, and the cost ot the university was £7000. The buildiDg grant, which comes from loan, amounted to £53,000. So that the total cost, including buildings, was £433,000. This no doubt was a large sum, but if the children were to be «dv. cated, tbat money must be paid in the way of school fees instead of taxation. He believed the cost would be more if education were a private function, and it would be less efficient. As to increasing the school age from five to seven, that would cost Taranaki Education District £1800 or £2000 a year, many country schools would be closed, and many children would be deprived of two years of schooling, which many of tbem would never make up, because they left school about twelve. As to cutting off the higher standards, only five per cent of the Tara> □aki children Lad passed tbe fourth stan* dard, so tbafc there wonli not he a great saving, and it would operate prejudicially to the children of poor people. He thought there might be savings made by reducing the number of pass Rubjects and making inspection a function of the central department. He disapproved of the pro* posal to abolish the boards, because under tbem town and country were grouped and worked logetber, and the country schools were assisted by the towns.

LEASES.

As to native reserves, he had in 1882 contended in tbe House that they and all reserves should be administered by one body, say tbe land boards, and to give effect to bis view had moved that proposal as an amendment to a bill brought in by the then Government, providing that tbe reserves should be managed by the publio trustee. Tbe Government, however, made it a party question (one of tbe inconveniences of party government), and he was defeated in iris object. Tbe evil he then pointed out was now felt by tbe native lessees. Nothing could be done to relieve these people because the Government had divested itself of all power of modifying the tenure of leases. They would have to come back to his proposal.

rKKsritAss AJsm protkctioit.

In this colony freetrade, a^ tbe term was understood in England, was impossible, because it would shut up the local industries. Even in New South Wales there was not freetrade. These colonies were all protective to a certain extent, but protection here did not take tbe form of practical prohibition, as in America, nor did be think that tbat would do here, because tbe farmers must obtain supplies cheaply in order to compete in tbe markets of the world with tueir produce, and tbcj most keep up trade with Bntr)uad iv i/rder t» get rid vt their prod ace. Ho would vote for duties which, if not too heavy, would encourage local industries. As to tbe

HARBOR QUESTION,

be pointed out that we bad sold bonds to ttte English capitalist at 6 per cent., but he thought in a year from now tbe board would not be able to pay interest on tbe loan, which amounted to £12,000 a year. The question arose, what would be tbe position of tbe bondholder? He ( Mr. Kelly) thought bis position would be just the same aa that of any other person who bad leal muaej on mortgage of farm or building, or anything of the kind. If tbe security did not yield enough to pay the interest, then the lender would have to be satisfied with less interest or take possession of the property and see what he conld do with it. Tbe bondholder was really in that position. If be did not receive hw interest, be could apply to the Supreme Court t» give bitu possession. So far at tbe colony was concerned, each debenture bore on its face .the words, " The colony is not liable for this debenture." or words to that effect. No doubt it would be a pity if this should ever come about, and perhaps to avoid it tbe Government would issue 4 per cent, debentures and altuw tbe bondholder to take these in exchange for bis 6 per cent, harbor board debentures. It might be said this would be a great loss to tbe bondholder, hut be did not think it would, because if at any time tbe interest were not paid the 6 per cent, debentures would sink in price, and, instead of standing at 110, would drop to perhaps 70 or 80, and perhaps become unsaleable at that. Fur* tber, it might happen tbat at tbe end of term tbe debentureholdera would have a difficulty io getting back their £100. But tbe Government 4 per eeni. debenture* would always be worth £100, and the bondholder could at any time realise without loss. Then tbe question arose, what wonld be the position of the Government ? He thought tbe Government would lose nothing by it, even if they reduced the rate to a halfpenny, which he thought they shoald do ; for tbe revenue of the board, including land revenue, would cover an amount equal to 4 per cent, on the loan, especially if the Go* vernment through the Railway Department could manage the harbor and so reduce tbe con of management. If there was & little deficiency, there was a sinking fund which iniuht be drawn upon. This plan would benefit the bondholder and the ratepayer, and would not injure the colony. It would, he thought, be a happy solution of the difficulty. He might point out that relief bad been given to the Wanganui Harbor, on which there was a debt of £17,000, on account of the bridge across tbe river. Tbe Government paid the money without charging the local body anything. There was a precedent for relief being given to local bodies iv difficulties. Tbe New Plymouth Harbor District bad a claim on the Government by reason of the changes that had been made in tbe land laws, and which had, to a certain extent, caused the Harbor Board funds to suffer.

IN CONCLUSION, be said that, although there was great depression in consequence of the low price of produce, the colony had large resources undeveloped, and plenty of assets, bat it wanted good government, and to do their share to secure that they could not do bettor than return him to th» House. (Applause.)

QUESTIONS. In answer to the chairman, Mr. Kelly said he was quite opposed to denominational education. Mr. Amoor asked if Mr. Kelly would favor abolition' of taxation for charitable pnrposes on friendly societies' property? Mr. Kelly said he had not considered that point, but be recognised tbe good that the friendly societies were doing, and if be could see bow it could be done he would assist.

In answer to Mr. Bobson,

Mr. Kelly said he should like to sea Vaile's system tried on some section of the railways, bat be had bis doubts as to whether it wonld pay. He would not apply it to the railways generally at present.

In answer to Mr. Amoor,

Mr. Kelly said ha wonlJ pft&t ib* Stratford route tor a road to Auckland if only one ooald be nude, m that opened up tbe moit land. It was intended iq to* provincial days to open up that land aqd explorations " wen started bat were stopped. A diaadrantage, howerer, mi

that east of Stratford there was a good deal of land in private hands. That land ought to have been acquired by the Government and- he had unsuccessfully pressed its acquisition upon two Governments.

use his Wst efforts to get those portions of the railway reserve unused by the permenent way leased at lower rates than those which were demanded.

Mr. Kelly said he would. He thought the land not required sbould be used.

In answer to other questions, Mr. Kelly said he was in favor ot the Government making railways, and not of handing railway making over to syndicates or companies ; he was in favor of assisting industries, such as cement-making, by giving bonuses and making railway freights low. As to caruent, tbe trouble was that the lareet 6teamecs were carrying it tety cheaply, aud the colonial article covfth not compete.

On the motion of Mr. Amoor, seconded by Mr. J. Thomson, a hearty vote of thanks was passed in favor of Mr. Kelly, without dissent.

The vote was acknowledged, and a vote of thanks to the chair terminated the proceedings.