GENERAL ASSEMBLY.

Lyttelton Times, Volume XXVI, Issue 1787, 8 September 1866, Page 2

GENERAL ASSEMBLY.

HOUSE OF REPRESENTATIVES WEDNESDAY, Sept. 5,

(From the Wellington Independent, Sent THE FINANCIAL STATEMENT The Hon. Mr, Fitzhrrr E u T rn sl said-Mr. Carleton-Tlie to mm J B a »i Supply has already voted a notinn •,° t able portion of the Estimates as,, ° N by the Government; having in,l jT I ceeded further in granting sup„li e , « pr ° - according to some lion, members wh,|, P . - is entitled to weight-it ought to liar! 1 '"" 011 before coming to the consideration nf \v '*< and Means. Without, howerer po,t J ' 3 that ptint on the present ot-casi.-n c l'-'" 3 nevertheless, lam not altogether „ re ,, , ell > admit), I say that it is satisfy' 'Jp l ° have at length reached this sta-eof n , e berations on Finance. ° Jtl iWhen hon. members recollect that tli sent Government has only nnifp assumed office, they will, 14y hope ledge that I have not unreasonably j t"'*" making that statement of the vi ews .,', IJ ' CII posals of Government, which i 3 Ils ',,'|, I ' r °- proceeding with the business of tl'.Jn e mittee. " Is L Qm. Keither, I conceive, will there be raiiPi,.appointment at the brevity of my '" 'J* when it is remembered that the lion ,»**?> for Gladstone has already laid b-f ( ,r' ( . in tr mittee of the House a statement con,'" ■"' much valuable statistical information " g ing the financial condition of the col, do not, therefore, propose ne,dle«l v t |!?' l over again this session the Siime ground T? 1 statement of my predecessor i n offi,..'-, . many respects, made ns correctly -t S r'*' ! n pretend to render it, and any differed, views or proposals there mav b„>, yr\\\ (~, f sufficiently obvious as I proceed' ' But, although my statement may bey., and I may have no startling „.)velti« ' finance to announce; yet I m " ™ Committee that it is only after bavin'™* i under careful review the whole financi ,1 eumstances of the colony lm ,\ tne m that the Government has arrived at th* '"' elusion that it ought to confine it, Jl proposals within the limits of strK-t nr U( |, and caution. ' "•'•"■

Under these circmstancestlien theO™ m it tee will not he surprised, if I ~m ceei at : to the point, like the experience.! vj,i ov Jf examine into the figures, so as to ascertain Z exHct amount of settlement which can be e fected for the maintenance of our v <,ri,> m establishments-colonial and provincial' The Committee have gathered that tlm (Y vernment propose to reduce the Defu.ee V.i mates, from the sum of XI 09,000 to thin,! £70,000 ; and it will, besides ffeib, ~ considerable saving amounting to nji'on alter, somewhat, the character of the~e Hmates. Instead of a rudimentary nm,/,,; Bomeseem to bare imagined, w e \<L the colony should content itself with the main. tenance of an armed constabulary. It h'iJ not be supposed that a reference to"this alteration is outside the limits of a statement like the present. For it implies nut mereln change of name, but a reductiim of exptiiditure—future as well as present, en l.tmi n well as direct. The precise hearing uf tfe view of the case will perhaps lie most really appreciated by those who have witneis&l tl'e effect produced on tradesmen's bills bv |i| e promotion of the errand boy to the "youth in buttons" ; and the struggle between iri,] e and poverty which ensues upon anv ppd cf reduction. Neither, on the other limi, ought it to be inferred that anv tiep.irture from thepolioy of self-reliance is co"ntem|i!.ui(l. Under that banner, indeed, the must biilb.it successes have bee"n achieved by our GiUiial Forces and native allies; and it lias settle! down into the policy of the colony But whilst the Government rely with conn" bee on the prowess of the colnnis's in the event of any emergency, it declines to incur ths expense of a costly peace establishment. There is no other noticable reductions tlie Estimates proposed by the Government,mull may therefore proceed to state the i-stiiia'cd expenditure for the financial year ending, SUtli June, 1867, nearly thus, viz:— Permanent Charges, (in- £ terest and sinking fund) 266,859 Civil List 27,500 Government House and Domain ... ... 7,133 Public Departments ... .W,.ifio Law and Justice ... 64,843 festal 143,130 Native ... ... 29,936 Customs ... ... 46,320 Miscellaneous ... 30.922 Defence 70,000 Supplementary, (including charges and interest on Treasury Bills, &c.) ... 15.000

Total proposed specific appropriation by General Assembly for Colonial and Provincial Services 733.30S Total proposed general appropriation by General Assembly to the Provinces for special appropriation by the several Provincial Councils 315.7 M Total proposed ordinary expenditure £1,057,0.i3 This result showing that the const lerable amount of £318,750 available for Provincial appropriation has been attained, Ist. By the reduction of the Defence Estimates'to the extent of £39,000, referrw to above. 2nd. By eliminating from the current Estimate* for the year certain charges of s permanent character. I now proceed to state the ordinary revenue estimated as available to meet the current expenditure, viz.:— Customs 850,0:10 Ordinary Miscellaneous 146,000 .Stamp Duties 50,000 Bonded Warehouse Duties 4,.i00 Licensed Distillation .. 1,000 Additional Postal Revenue 7,000 That is to say, " the estimated or.litwrv revenue of Neiv Zealand for the present financial year, as proposed to be supplemented" by the new taxation, will be sufficient, al' |cr l ' e ' fraying the first charge fur interest on to 1 "1 to provide for all the ordinary colonial ana provincial services; and also to make fnrtiicr provision to the extent of £318,000 for w use of Provincial Governments." It must be admitted that it is very satisfactory to be enable I to make such a *M e j" meiit. And it is satisfactory also to fin'i, * turning back a little upon the past, tl' :lt '* colony has for some time been working "l> this desirable adjustment between rtven* and expenditure (my remarks are siiDI 1 . confined to ordinary revenue ami expenj ture). This favourable tendency ami nm attribute to a combination of causes. \ ■•' partly to the stimulus of the |!<;ldlie i«i partly to the increase of taxation clfeetf 1 , 1864; and partly to a prudent Departmental Expenditure ; and »>a) traced in exact terms in the valuable ret which I have now before me. . „ I ttnrn No. I shows that upon a of a period of three years, viz., fro"' 151 " to 1865-6, t The growth of Revenue was 27.15 p<?j" cen " Do Expenditure afi.l {l ° Return No. 2 exhibits Departmental Revenue and ff _ affords some instructive lessons; t' ie 10 iug inter aliter:— |,,j Customs.-That whilst the largely increased, there has only been a» increase of expenditure. That the si' r P r increase in the Customs Revenue of i; x bury and its steady increase at e , and Nelson have more than outffeig" ea decrease at some other ports. . Pastoral-I'bat the great disproP (,rt '° | , ]l | / tween Revenue and Expenditure is g rlia ' diminishing. flll d JudickL-That there is an alarm'ns e increasing disproportion between and Expenditure, particularly ' n 'jj,,,, owing possibly (I throw it out as» sup? (|) which f have not yet had time to the costly attendance of witnesses at , } and to the diversion of fees to the ' ' Court.

That there is a very gratiJW s,r le of revenue. m n merely take occasion to observe, 1'"" ' bV I* of re . tUr , nS f Ch / S fir- ' e can alone ascertain the direction tl)< encl.n.Htt of expenditure or.uin'vllld luefasthe case may be) may <fSti"^otimewitbsafety. ft", A last now that certain charges of I° b f cliiracter are proposed to be »P- rn,LUl | , from the current estimates of the cliii"'" 3 ' , ,l,ould also state that it is prothe unexpended balance of l» seli "7, „ the revenue side of the accounts. I tl |e,o:l , ' Its of this profess of separation ! TllC to!;,lv obvious, and I need not there»ie" • the time of the committee by fore butw iU at once submit m^ tlm7Btyle ~ { „«l for appropriations in liquidaAJ^ttaiilmderttoThrceMilßbn lion of.Mr l loan:- £ , ~!,.,, - 207,000 }[i,i , ,: 'l,i Cable and TeloO k ' to Auckland 38,000 g^.^ova.ofSeat ofilili,aryßettlt,rß J^l £3oi.y r )00 , „ 1 ,,i,,,1 balance of Loan ... 170.000 £31)'i,500 Tnkethi* opportunity of mentioning for *• f rn.tioii of the committee, that the SSiiHicbi'ntures a.J.a.ced to Auckland im I 0 f the sum of .£170,000 just re--5 to as the unexpended balance of the farther, I must iUlwt nifeht at first sigh, appear to ?* f p ton an omission, in any proposal pur- ,;, <r -n have for it* object, the winding up ionization scheme of 1863. I refer .° u ,„s of £37.7:,0 (Taranaki Loan Onli--1 ami <'.'>■' MO CI siranaki Land Pur°wFun.l)."lt iss « fn f ienl, V n,|l -V ,0 "' n ; TmWK'o amounts have been diverted - 1 t'iir original destination, and expended fL G..'ii"r.<; Government on other objects. • jij b , understood that I am not now can--'iiiff the propriety of these transaction*. \ um <Tinplv stating the case and no one will i'mik-tlwt the good faith of the colony re- , - > <h t these funds should be reinstated. ivK'iird to tht> fir?t ite '"' i,iasmm:ll as I .lie'iniercn is provided for on i lie estimates, ; rnj tlie debentures do not fall due till the "■■•ir 1f73, there is no immediate pressiLe ; an'da"ai'ns: this I bring to account an nss-t f (41.0:1; 9s 9.1, being the amount of debt le'liv'tlie province of Southland, which I liar, everr expectation will be repaid before ] tiiepjriiiof maturity of the Taranaki de- , Vn'iacs. it is. in my opinion, a perfectly ' d,i .I rt«rr. With reference to the second ( ten, it is propose! to commute this item ( livVceisio" of land ; an arrangement which, there is reason to believe, can be equitably , ejected, j It Kill mi* be asked, how the Government prop* to provide for the deficit ot £13G,5u0, , eihii,iteil hi this proposal? I would fist ( o's.'ve. tli t the Government will bring down , 8 Bill 11 indemnify for the past expenditure j of tlie Tlirev Million Loan, and to impropriate j Ik unexpended balance. 'I he appropriation ( Kill con.- st of so much of the item " Military jjjtttltrs." as can be covered by the remanet ' cf die aw tor that is a charge specially per- ( iainm? to the loan. In the next place, the Government will propose a bill, authorising ' tlie issue of Treasury bills to the extent of . £\5M. having a eurre cy so regulated as to sprtad the charge on the Revenue over a redo I of three or four years. With regard . Mtie item "Cook Strata Cahe and Telegraph Illusion to Auckland," I would J tX!il;i:n tint the Government submit this pro- , j-osal ss the neces ary complement of that great national un n-rtaking which has already connwied the shores of Coo< iStrahs by I me'.ns of the submarine cable, and completed telc.:rnpliic communication between the sent •. ol GuvtrameMt and the extiemity of the Mill !e Island. I would also explain that, ' shlii.iidi i: is true that one-sixth, or pvrhaps cne-fif di. of ihe amount of this proposed ex- ' ptud tare of a permanent character may not . ksciiwilv brought to charge within the pre- J sti.t fi..iii!ci:d \ear; y<t, that almost the er.tir;::!iiii!nt is a;: obigathm already exi-t- ' ins:; a:id that the "Telegraph Extension," *' if s.mc.ioned by the eonvnittee, might be adr..n:age(iusly contracted for within the rear. At any rate it appeared only KiS'inaMe to includetbe<e prop.sas in any s fch-mc having fur its object a final settlement j of the Tlueu Million Loan Appr priutions. It is ntcts-ary that I should refer to the que>ti.iii of provincial surplus. It will be ad- j mittel, I believe, by those who have dispassiouiitely considered the subject, th.t the I present state of the law, as established by . tlie '• Surplus Kevenue Act," is unsatisfac- ' t'iry. It creates a partnership account, ] complicates exceidingly, and delays * tlie accounts of tlie colony,'ami throws an itactnainty over the amount available for jimyiiieial appropriation, which is very preju'lttl to the int. rests of the provinces j thtm-clves. _ It is a very old saying, societas J ft' eater dimriiamm— (partnership breeds s T'w.els); and ih- truth of the saying has ' tttiuuijjy exemplified in N. w Zealand ; f.r ' j belitve that a Urge proportion of the dif- ] "reacts vmi h have f ro ,„ time to time oc- ! c "rre.l in this Legislature may be traced to ] ™ fact that the various Governments of ' •V.r Zealand a 1 dip their hands into a com- ' ■j' 11 !! pur>e. The Government, however, ' J'*s nut propose- any amendment of the law ' lill * ■e-Mon; but it, nevertheless, regards it ■ as aquestion which has to be settled* sooner j or !ite ; uni] ; tt ,. in scarce ]y ] )e conceived, I ' ibliii,-, tiiut any s.uin.l and settled sy stein of ' nuance can | le established for the colony ; ™» this partnership system has been : »m\H. t|, L . ev i| s of w||!ell ]me ;, )rfeed *n successively shown by audit committees. '•'livii, the Government is not prepared v a ni '-a<urc this session, what does it pro-IH-todo? ] ], ; IV (, s[il!e j t | ie „ m(rai|t f()r r"j'^'.' 1;l ' a Pi' r,) priation as estimated, a: it ( \''" fJ ,r ''''' eunent year. T.iis sum "ife (jijvcrnrnvnt proposes to insert in theApP|«pr;ation Act, f r the specific services of le pr.i\inccs, by means of appropriation by *'»■ ncal founci!s-io be issued lo the, _ rriivineca in monthly instdments W'MOielt.jtiie gross Customs lieveiiue, whidi will give a stability to ''"'"leiaicihiilations. which 1 venture to ' Jr.ii, has JiitlH-rt,, never existed. On the "" "mid, it mu.t n„t bcforiwiten that our no |'"' aU;S, 'f lieveiiue may fall short • I do g|l J (i | illi; " !! P ,ll; it, but pr.idence requires that J' a cuiiting. nc : , bhould enter as an clement ' M,, ir calculations. It will have been, peras",!l l " ll " J :ilnr ' uilt of Treasury Bills qui"'! f' s '! nu ' w,|:it exceeds the halauce re>i'e fur tiio permanent appropriate n, .'r" 1 '■ ' S !" ,(;,ldeii tl; »t "'ese b.lls may >*] ii. aid of cuTeut revenue, if neces-•.)-11 necessity, however, which need not Acr'i ' fo '' if th(i "S l « r P l,ls Kevenue £^ 1 he simply adhered to, and the sum of tion a""' !j " l "' t ilicll " 1(: d in the Appropriara'iltlt I i 6 "''"" t '" 3 sll ''J et!t ' ll mft y be desiritlii'' ' , , l ' S(; '-' rt ' I ' n -be amount and proportion en die I'r.»vi, ;C ts receive I during the last ■ VWr - ll,e rL '' llrn i llu| d '» ni y )w '('"''Urn Xo.'lj shows that during the i: liiiancial year, the Province re eived of",i , w £, V53 less than three-eigiiths "' '-ustonis. Jtcoimuiitee will probably desire to Hie on- ViI:WS of llie Government on i s . l j'7 ll '" l(| f<- , »iisolidiilioiiof loans This t„',,,„ ( r { l: ' r K e subject, and has necessarily piv'"'.. ~ ,le atteniiou of Goveriunent. It N)lj,i .•"" ltse,f '" ttt 'o asiieciss, yiz., the con"odiis Ti° f • : " ! ' ,nilil anil tll,lt " f P r,)vinciill all ii.'ir Wtlt ' VUIIII ' lle most dexiraMe for 10,,., „ s, . a . t .'» cmsolidate all the different char,',.!'"'" Ils tlHj y lue !lt pre eut in •"'"' frC( l" em, y «on<li'-:ting with it|h, |! L T m l ' le market, no one, I imagine, jfcet en ' Stln, ' eil !l "y attention on the sub)hrt' j ■■" «"teriain a doubt. For my own skilf',,;.., c ." nfi,le,lt 'bat the operation, if fi •in,V'!'i T l ' WOuM I*"* hißblv probe k,,,,.- 80 ' s ""'' 61 in to one common stock, to Kt„„|.„ " "HTcafter as "Mew Z.'aland Witoi'i ~ leot the greatest advantage, le eoloi 'y and the provinces. But a

■ new Government could not introduce such a subject at the close of tiie session, even if , the state of the mpney market were favouri able. So far, however, as relates to the coni version of a portion of our colonial securities • I may state that it is the intention of the Government to introduce an enabling bill during the present session. ; I now approach the subject of the new ! taxation proposed. The Government may, i perhaps, encounter opposition to this measure, but it does not, therefore, shrink from the responsibility. It believes that a considerable number of thinking men throughout the colony are prepared to accept the method of taxation, by means of what are called " Stamp duties," as a less objectionable mode than most others. They believe that a certain mixture of direct with indirect taxation represents a sound principle; and they recognise that taxation by means of stamps, partakes of the advantages, both of a property and income lax, whilst it is free from some of their disadvantages. They recognise further, this sound principle in the proposed form of taxation, viz., that the incidence of the burthen is, in the main where it can be best borne. And if it should be contended (which I do not think it can with reason) that this tax will realise a much larger amount of revenue than has been estimated, then, Sir, I submit that a very favourable opportunity will present itself next session, alter such a tact shall have been fairly established, for the Government to relieve the pressure from off the shoulders of those who contribute to the revenue according to the present rates of duties levied on the necessaries of life. But, besides these arguments, 1 draw attention to a very practical view of the case, viz., the necessity of keeping up the revenue, if, indeed, it is desired to make the various provisions proposed by the Governnier.t. For i scarcely imagine that anyone would be found to recommend that we should go into the market to borrow in order to provide funds for the ordinary services of the provinces, to be appropriated by the different Provincial Councils. For this is what it would ainount to. I simply observe that an operation of that kind would not be calculated to improve our credit. Before concluding, 1 desire to thank the Committee very much, for the patience with which they have listened to a statement, when the monotony of the subject lias not (1 am quite conscious) been relieved by that clearness of style and arrangement which ought to characterise it, and recommend it to attention ; and the only excuse for the absence of which lies in the fact, that 1 have had as the Committee is aware, but a brief space allotted me. I beg, sir, to move the following resolution, —•' That there be levied in aid of the supplies granted to her Majesty, certain Stamp Unties." , ilr. Moorhouse rose to contend that this tax would not be necessary, as a very small addition to the sum raised by Treasury Bills would make it up, and these Bills could easily be met, for, while the expe. diture of the colony was decreasing, the revenue was increasing every year. Tlie hou. member also alleged, at some length, that the tax would be a most distasteful one throughout the colony and would prevent immigration. The Government seemed to be trying to teach the country to bear unnecessary burdens. The Treasurer had said that it would be most rash for the General Government to raise a new loan to give money te provinces, butmany persons held a contrary opinion ; for nearly all the money was expended by .the Provincial Governments in a profitable and reproductive manner. The Provincial Governments were the colonizing bodies, and could act better in certain matters, than the General Government. And the Provincial Council in the province he had the honour to belong to would compare favourably with the House. He regretted to see the Ministry take their present course, for it was a childish One under the present circumstances of the colony. They said to the people at home, ' Here we are taxing ourselves to the extent of £50,000, ain't we honest? " but the people of the Stock Exchange would say, '-Why did not you tax yourselves a little more ?" He believed that it would be good policy for the General Government to borrow money and give it to the Provinces, for the latter did all the useful works, and the establishments of the former should therefore be reduced. There was a lot of high sentiment rolling about on the floor of the House, but the people of the country did not care so much about sentiment, as for freedom from taxation, especially when they could avoid it by borrowing. The commerce of the country was inc easing wonderfully. Auckland, having got rid of false supports, was standing on its own legs, and was becoming a commercial town j Wellington and Nelson were progressing, and so were Canterbury and Otago, so that the money could easily be re-paid by Treasury Bills. He must object to the course proposed. Mr. D. Bell asked the Treasurer whether it was the intention of the General Government to deal with the confiscated land as au ass-t of the colony? The Hon. W. KiTznMtBKRT said that further than his allusion to the Taranaki Land Fund he had not counted on any sums to be revised from confiscated lands. In reply to the lion, member (Mr. Moorhouse) who had started off on a provincial tour, he had misquoted him and had not taken the whole of the sentence about handing money to the provinces. (Hear, hear.) It was extremely likely ti.at there would be more ferment now in New Zealand, as the electric telegraph was opened, but the Government would rely on the Superintendent of Canterbury to allay I hat ferment in his own province. With regard to the imposition of a new tax of £')O,OUO, he (Mr. Htzherbert) did not see any sentiment in it. The lion, member had been labouring under an hallucination in some of his figures; what the Government wanted was to take off charges for permanent works from current revenue, and place them on loan. There was no desire to cripple the provinces, but if this tax was not imposed the provinces would receive so much less. Jn reply to Mr. Dillon Bell, The ilon. W. Fitzhbrbert said it was not the intention of the Government to abandon the 2s (id an acre for confiscated lands. The SpEAKKßmadeafew remarks as to the course which should be pursued. The resolution to impose a new tax, should have been deferred until a later period. After some discussion the House resumed. The House adjourned at midnight.