FINANCES OF THE COLONY.

Lyttelton Times, Volume CVI, Issue 12570, 3 August 1901, Page 7

FINANCES OF THE COLONY.

STATEMENT BY THE PREMIER. [From a Correspondent.] WELLINGTON, August 2.

An important statement in reference to the finances of the colony was made by the Premier when speaking to a deputation, representative of Nelson and t'hg West Coast, yesterday afternoon. The deputation asked Mr Seddon to procure a vote from Parliament sufficient to complete the railway line from Reef ton to a point at the junction of the Buller and Inangahua Rivers (whence it could branch off to Nelson and Westport); and also to get Parliament to authorise ' the ultimate extension to Westport by granting a vote for the preliminary survey work. In reply, Mr Seddon said the Government wontcj in time ask for sufficient votes to complete the line to the junction, and a survey might also be made to Westport, but he could give no promise of an early response to their desires. The Premier then went on to refer to the general borrowing policy of the country. 1 He said there was a tendency on the part of Parliament and of the country to lorce the hands of the _Government, but he would not suffer himself to be forced. He would sooner relinquish his position. The finances of the country had occasioned him much anxiety during the last few months. He found when framing the Estimates that the commitments of the Public Works Department for the year would amount to £1,500,000, another £500,000 must be for their railways, and at led'sfrWie million would be required for advaltlplplo settlers, to purchase lands for settlement, and to make roads through lands ®ow. bsiqg opened up for settlement. Thus" three millions had to be provided already, and yet the people were hot satisfied, but continually asked for more. The position was becoming intolerable.- He would be no- party to a policy of large borrowing and spending, which might bring about a temporary prosperity, but would eventually terminate in disaster. He regretted that be had been led in some degree from the more prudent policy of the d past. Last session the mom hers—even some from Canterbury—had joined together in forcing more rapid expenditure on the drunk lines, especially the North Island line. This was unwise and imprudent, and if persisted in, would inflict great injury on the colony. He felt this very , deeply, and was determined that his name .should not be connected with looseness or recklessness in finance. The spending policy had been increasing at far too rapid a rate, and it was time to go. slow once more, or the consequences might be such as he scarcely liked yo contemplate. For this reason he was determined to cut down the expenditure, taking' care that there should Ire a fair apportionment throughout the colony. , Discussing the ordinary balance-sheet of the colony, the Premier said _ that this also, caused him very much anxiety. For last financial year they had an excess of receipts over expenditure amounting to half a million; in framing the Estimates for the current year he was unable to make the receipts equal the expenditure. Parliament had made the people largo presents by abatements in the Customs and postage, and now it would be necessary to lock for more revenue to meet the deficiency. The position must be faced, but it was by no means a pleasant one. vI understand it is proposed to make up the estimated deficiency ini part by an addition) to the land tax, and there may also be some slight rearrangement' qf the Customs. It appears that some stringency has occurred in the finances through the claims for old 1 age pensions being_ much more numerous than was anticipated.