MR. FERGUS AT QUEENSTOWN.

New Zealand Herald, Volume XXVII, Issue 8263, 23 May 1890, Page 5

MR. FERGUS AT QUEENSTOWN.

[BY TELEGRAPH.—'PRESS ASSOCIATION.] QrJEKNMOWN, Thursday. The Hon. T. Fergus addressed his constituents in the Town Hall this evening, the Mayor occupying the chair- He said he would not detain them with a review of the past session, as nothing had been said by the members of the opposition in the shape of criticism that required answering. After devoting some time to a reply to an attack by Mr. Fisher, M.H.R., on the financial administration, ho said he had pleasure in congratulating the meeting on another surplus a little larger than that on whioh he congratulated them last year. The Government, after meeting every legitimate claim, was able to present a balance-sheet showing to the good £115,184, which had been arrived at without undue straining, and notwithstanding the fact that the newly-adopted tariff did not provide within £49,000 of the estimate, the railways on the contrary yielded £63,340 beyond the estimate. The task of the Government was still a difficult one, and he did not think there was much chance of the impost of taxation being reduced. No doubt some charges as buildings must be transferred from the loan to the consolidated account, and there was the fact that throughout New Zealand the population was increasing so rapidly, and the advantages of the scholastic system were so largelyutilised, that they urgently required considerable sums of money for the erection of schools. Before they could remit taxation, they must provide for all charges resting on loan, and the money required for school buildings. It was the intention of the Government to ask the sanction of Parliament to Bet apart a sum of money at least this year, and probably for two or three years, to enable, them to overtake the school building requirements of the colony, especially in some parts of the North Island. It might be well also to provide at the same time for the extension of Lunatic Asylums. He was largely of opinion that the time had arrived for the proper classification of the inmates, and for the drafting of those who had to be kept in gaols into establishments of that kind. The Government thoughtthatsome portion of the revenue should be devoted, for a little time at least, to this purpose. The noticeable nature of all speeches of late had been that there had been no talk whatever about a change in the incidence of taxation. Mr. Ballance hud claimed exemption for agricultural improvements, but Sir R. Stout at Oamaru had carefully abstained from any reference to the J question. He believed that these gentlemen when in office had had it brought home to them that it was impossible, with any change, that the public creditor could be satisfied, and the services of the colony be discharged. It would be exceedingly absurd to make a change. He disliked the propertytax as much as any member of the Opposition, but he saw no other course at present for the colony to pay its way. Those who talked about % land and income tax forgot that the bulk of taxation at present fell on the land, as out of a total of £354,000 paid in property tax, at least half was paid by people utilising land for agricultural, pastoral, or dairying purposes. Passing on to the questions of the burdens of the colony he held that a debt which, to Ins mind was just as much a colonial debt as that of the £37,000 000 owing to the British tenderers, was the considerable quantity of local debt. The local bodies in the colony had borrowed five millions, for winch they paid sums varying from four to seven per cent. The average rate was £5 9s tid, and the total annual payment £272,530. He had always thought it a great pity that local bodies were taxed so heavily for accommodation received which was required for necessary works. Mr. Westgarth, when in the colonies, had poiuted out that by the consolidating of the local government loans, a saving of 1,2, or even 3 per cent., might be made upon present rates. Supposing they consolidated these loans at 4 per cent., a saving would be effected of £73,450. In addition to these, there were loans of £332,715, being money borrowed from four Government departments. He did not advocate that increased facilities should be allowed to local bodies to borrow, but he maintained that it would be the height of folly to allow local institutions within the colony to be bled at the rate of 1, 2, or 3 per cent, more than they would have to pay if the loans were put on a more satisfactory footing; and it was the duty of the Government to see if something could not be done by which, in future borrowing, loans should be issued with such restrictions that local bodies could obtain accommodation on more reasonable terms than at present. | The question of the indebtedness of local - bodies had been brought home with consider- [ able force in view of the fact that the New Plymouth Harbour Board had been unable to meet its interest in the home market, and that there was a further danger of the Gisborne Harbour Board making default. It was certain that if one and another of the local bodies made default, the fact would operate on colonial Stocks also, and would restrain people at home from having anything to do with our investments, and prevent that stream of desirable immigration that was needed. If they could do anything at all to ease the minds of the people at home, or to ease the municipal taxpayer of the colony under the burden of the payment of interest it would be a wise ami statesmanlike act. The question of local borrowing led up to the whole question of local self-government. He Was strongly of opinion that local self - government was grossly overdone in the colony, with the result that useless expenditure was heaped up. His own opinion was that a great many licensing committees throughout the colony might be done away with, as ! they were doing infinitely worse than under the old system. The Government had under consideration a measure for the amalgamation of some bodies on the West Coast, and of any other similarly affected district, giving them greater power than at the present time, and enabling them to put their finances on a more sound and proper basis. One subject of considerable importance was that of the settlement of the people on the land. The colony had a grand estate yet in the hands of the Crown and of the natives, and the question was how best to bring under occupation those lands that were lit for settlement. Since the passing of the late Native Bills a disposition had been shown by the natives to bring their land through the Court, thus being enabled to deal with them. He was of opinion it was a great pity the Crown ever gave up the sole right to purchase native lands, and had ever allowed landjobbers and sharks to enter into competition, but the Government were of opinion that the time had arrived to secure as much land as possible when it came on the market. The question was how to obtain money. The Government had resolved, or it had been resolved for them, that they should not borrow, but they thought the thing could be managed by .the creation by the Treasury of land debentures on the security of such native lands as were already acquired, and on the security of lands about to be acquired. These debentures to be issued in the colony, made available as investments to colonists, and made first charge on the land when sold or settled. There was no other way except to go to the London market, which they did not intend to do at present at all events. In connection with native lands andCrownlandsalready acquired there came the question of loading of the lands. The Government thought they saw their way to raise the necessary money for this in a somewhat similar method to that proposed to raise money for the acquisition of lands by the creation of road debentures, to be an additional charge on the land, which, when surveyed, would be valued by a competent valuer. It was very gratifying to find that the land was going off well in the colony, especially on perpetual lease, but the Government thought a great deal more must bo done to open the land for settlement. Considerable areas wore being held i.nprofitably, having fallen into the hands of companies for mortgagors who had been unable to meet their engagements. They could not blind themselves to the fact that these lands were injuriously affecting the prosperity of New Zealand. Hie would be the last to consent to legislation that would rob those who had obtained land in a legitimate manner, but he was of opinion that while the colony should do nothing to injure those, they should do nothing to injure the colony. The question arose, How was it possible in fairness to the companies to get those lands settled to the best interest of the colony—whether by additional taxation in order to burst them up, or, as he thought preferable, by State acquisition after reasonable time had been given to realise, he was not prepared to say. The Government had some time ago put £10,000 on the estimates for the acquisition of property for village settlement. The vote was struck out. Why should they not go < further, and take up considerable quantities of the land, rendering it "fruitful" and profitable, was a question that would have to be faced. He did not refer in these remarks to lands that had been acquired by land companies for the purpose of development by agricultural or pastoral pursuits. There were a number of other questions that must force themselves on attention during the incoming session of Parliament. Among these was the question of charitable aid, concerning which the Government were firmly convinced that the measure introduced last year was a fair, equitable, and just solution of the difficulty. A question of some import- : ance to the goldfietds wa.sthat of gold duty, i He had long been of opinion that the exist--1 ence of this duty was ft relic of barbarism,

and he thought that the time was come when it should be abolished, and a more just duty substituted. If they were to adopt to some extent the suggestion made at the Miners Conference in Dunedin, it, seemed to him they would overtake the difficulty. Twelve thousand acres were held under miners rights, a great deal being held by speculators purely for sheep - herding purposes. If the minimum annual value were put on each claim, and local bodies were authorised to rate up to that value, they could and would force speculators to contribute to the revenue, and miners would be relieved of an annual payment which he believed was indefensible ; besides they should allow all mining companies to be rated ordinarily under the property tax. The Government had been trying to effect the classification of the Civil Service, and bring it on workable lines, taking department by department. The last department they had taken was that of post and telegraphs, in which officers were paid more poorly than in any other, and it was the intention of the Government to submit a classification of this department which would raise the salaries of all smaller and poorly-paid officers, and put them in classes whereby they would rise according to service and merit year by year, without the interposition of Parliament. He was of opinion that some classification should similarly be made of the teaching profession, and he would like to see teachers made civil servants. This subject was engaging the attention of the Government. Regarding Federation, he said he would begin to believe in federation, and to believe that the other colonies were sincere and "desired federation when they began to take off instead of put on taxes on our natural products. Till some disposition of that kind was shown, he would think the question of Federation much in the air indeed. He concluded by inviting the careful consideration of the electors to these questions which they must ultimately decide. „ , ~ . At the conclusion of the address, a vote pt confidence in Mr. Fergus was unanimously