PRE-SESSIONAL ADDRESS.

New Zealand Herald, Volume XXVII, Issue 8268, 29 May 1890, Page 5

PRE-SESSIONAL ADDRESS.

MR. WITHY AND HIS CONSTITUENTS.

Mr. E. Withy, M.H.R., for Newton, addres ied his constituents yesterday evening at St. George's Hall, Newton. Mr S. J. Ambury, Mayor of Newton, presided. There was a large attendance. A RETROSPECT. Mr. Withy, who was greeted with cheers, said he proposed to take a two and a-half years' retrospect, and with that subject he would couple the question of how our finances stood. Two and a-half years ago there were before the country two main things—retrenchment and protection. The electors decided for retrenchment as the right thing, and afterwards they declared for more protection, there being a general hope that retrenchment would lighten our burdens, and that more protection would stimulate industry. They had to consider tonight what had been the effect of both these changes. This was a matter of very great moment to this colony. He did not think there was any risk that any Government would bring this colony absolutely to ruin, but this was not all that they should try to avoid. What they wanted to do was to get a Government that would do its best to manage the finances of the colony properly. (Applause.) He was not satisfied to take the London bondholders' opinion as to whether the colony was in a good position or not, just as no man of business would bo content to take his bank manager's' opinion as to whether his business was really sound. A stranger in our midst had spoken of the " trade of politics," and had denounced it. He did not hear him, but he did not think he could have said anything too strong to express his (Mr. Withy's) dissent from those who looked upon politics as a trade. What they wanted was to make the business of the colony a thorough success, and consider tho " -estions that belonged to the Government* « the colony instead of the petty reasons which actuated a man in voting for Aorß at election times. .

THE PROPERTY QUALIFICATION. ' He dwelt on this because last session there 1 was passed an amendment to the Representation Act, providing that in future elections there should be no property vote, and that throughout New Zealand the principle should be "one man, one vote." (Applause.) He was in thorough sympathy with that ' change. Whilst he believed that property should be represented in local matters, such as that of rates, he did not consider that it should have any vote at all whore the question was one of making laws affecting the good government of the people. (Applause. ) RETRENCHMENT. When the electors asked for retrenchment, they showed that the opinion of the colony was that there should be a redaction of our bunions. ; that our burdens should be lightened and taxation reduced. They would now examine the result. To March 31, 1888, the year in which the first Financial Statement was delivered in that Parliament, the expenditure under the 13 departmental items amounted to £2,019,572; and by March 31, 1890, it had been reduced to £1,959,355, showing a decrease of £00,217. It was perfectly clear that with such a small reduction as that no relief of taxation was possible. The Treasurer had claimed that he had made a saving of £233,000 in the full twelve months. He did not think he had tried to deceive them ; he did not think he did ; it was possible that by the Treasurer's method of dealing with figures something of the kind had been effected, but he did .say that the Treasurer had not met the demands of the people, and that the real reduction of £CO,OOO was nothing like what the colony had expected. In November, 1887, the Treasurer estimated that he would reduce the expenditure to £1,799,200; but we were still £100,155 in excess of . that sum, and, worse still, the expenditure was £70,931 this year more than in the year ISS9. Mr. Fergus had now claimed that there was a surplus of £115,000; but our saving of £00,000 went only halfway, and he (Mr. Withy) pointed out that the saving had come in an increase of taxation. We had sought a reduction, but we had not got it. The ordinary revenue to March 31, 1890, as compared with that to March 31. 1888, showed an increase of £340.052 deducting primage. We had less population and more taxation. How very patient the people of the colony must be ! They had asked for bread, and had got a stone, and were nevertheless as patient as if they had got the broad for which they had asked. (Applause.) If they deducted from that £340,632 the interest, £132,000, they would have £208,652, and adding to this the saving in expenditure, £60,000, they would have £269,000. How was it that the surplus was not £269,000 instead of £115,000? £154,000 represented the leeway which had had to be made up almost entirely by additional taxation. Mr. Withy also pointed out that the charge for sinking fund, £200,000 had ceased, but the taxation had not been reduced to that extent; whilst another £75,000 should have been taken off to represent the additional charges to local bodies. This reduction would yet have to be made. He would give the Government credit for having included school buildings, £25,000, in revenue instead of loan ; but he did not think they had gone half far enough. We wanted to go a great deal further in the direction of retrenchment, and if the colony did not demand it now or at the next general election they would not get it, and things would go on as before. (Applause.) AN UNFULFILLED PROMISE. In 1838 a retrenchment committee was formed, and the result was that in going into Committee of Supply an amendment was submitted asking the Government to reduce the annual expenditure by another £100,000. The Government, however, made a promise that during the recess they would reduce expenditure to the least possible point. He could not say that they had fulfilled that promise. The expenditure during that year, 1889, was £89,224 above the Treasurer's estimate, and last session an additional expenditure of £05,000 was cheerfully voted, whilst we had now spent £71,000 more than in last year. The Treasurer, who had a habit of putting his foot down, could here have put it down to some effect, and if lie had been defeated lie could have appealed to the country. He (Mr. Withy) believed the country would have returned him with a majority to go on retrenching. (Applause.) Instead of a reduction in taxation, the position was moro burdensome than when they cried for retrenchment. He was glad that the expenditure upon roads had been reduced from loans, but when the loans were done they would have to face the question. They could not allow the roads to fall into disrepair, and they would have to submit to further taxation or insist upon further retrenchment. He'maintained that they were not now meeting charges of six years ago by £325,000 a year, and we were a grievously overtaxed people. There were only two chances of relief—first, to borrow no more, and second, to reduce our expenditure vigorously. (Applause). THE INCREASED TARIFF. There was one obvious effect of the increased tariff: it had resulted in extra taxation. He would like to know what increase qf employment had been provided by the increase in the tariff, or whether the wages of the working man had been raised. It was quite clear that our improved position in the increase of exports had not been helped by the tariff; it was a position of good fortune, quite apart from the operations of the tariff. They must look at Protection as outside the £200.000 a-year revenue which was paid on articles brought in, and which Protectionists wished to keep out. The increased tariff, moreover, was a great bar to extra taxation. Mr. Withy also gavo illustrations to show that that tariff did not benefit the workingman, and said that Protection could only lead to monopolies.' THE RAILWAY WAGE. He came now to a point upon which many of them were sensitive—that of the railway wage, and as to whether it acted as a standard. The secretary of the Amalgamated Society of Railway Servants, writing to the Commissioners, stated :-— It must be apparent that a reduction of wages in so large a Government department, will act also as a precedent in reducing wages generally throughout the colony." He (Mr. Withy) was of the same opinion as in 1888, that, the railway ser vanta should not be paid more tha_" I

the fair market average _ rate. He disclaimed any enmity to railway men ; but he made no pretence of posing as a working man's friend. (Hear, hear.) He did not believe in any man he had ever met who had posed as the working man's friend. (Applause.) If it was true that the reduction of tho wages of the railway men would result in a reduction of outside wages, then it must also be true that if the railway wage were kept up the outside wage also ought to be kept up, and also that if one were raised the other should be raised. But what was the fact? Keeping up the railway wage had not kept up the wage outside. Not only had a great reduction come in the rates paid outside, but a large number had not been able to get work at all, and they were told that nine thousand people had emigrated from New Zealand. Mr. Withy argued at further length, to show that the maintenance of the railway wage had not as a matter of fact, and could not, as a matter of argument, keep up outside wages.

I LAND OWNERSHIP AND THE PROPERTY TAX. He believed that private ownership of land, as it existed, was one of the main causes of disputes between capital and labour, and one of the main causes of the great extremes between poverty and wealth. Pretty nearly everyone was agreed that land speculation was a bad thing. First of all, it generally locked up the land and kept it out of use; and secured an enhanced price with no effort on the part of the speculator. The increased value of land came wholly by the presence of a community —(Hear, hear.) — and an increase in the community produced competition. Competition raised the price of land, for the benefit of the land-owner; but the same competition which increased the price of land, reduced the profits ot tradespeople, and reduced the wages of working men. (Applause.) The landowner who let his land for rental was not nearly so objectionable as the land speculator, because his land was used. Land frequently passed to higher-paid uses, as, for instance, from pastoral to agricultural purposes, and so on business .premises and factories spread out into the suburbs, and the community doubled. This competition for land was all in favour of the landowner. When the population doubled the owner did not double his business, nor make any greater outlay of capital. The tenants made the wealth which he acquired for himself; and if the community made the value why should an individual monopolise it ? During this century the question of land ownership had been very much discussed, and Henry George—(applause)—had endeavoured more than any man before him to popularise the know ledge of the principles underlying this question. The reading of his books convinced him (Mr. Withy) nine years ago, and he strongly recommended them to read them. A change was needed, and in New Zealand the property tax was a very good basis from which to start to try the effect of this change, and effect it gradually. He urged that improvements should not be taxed. Under the property tax an unsuccessful business had to contribute to the revenue ; in" his own case lie had had to pay taxes for a house which had not been occupied for seven month?. The property tax was discouraging to every kind of improvement. (Applause.) No basis was so proper for taxation as land ; by such a tax industry, which did not make land, would not be hindered, no capital taxed, nor enterprise discouraged. Land could notfbe hidden nor removed, and the rise and fall of its value could be adjusted perfectly. Hut as it was the growth of a community which gave value, exclusive of improvements, it was perfectly reasonable to draw for taxation from the value given to the land by the presence of a community, and the man who owned a cornor site, and had thus bettor opportunities for aoquiring money than the man whose premises were in a back street, should pay more in proportion.

OTHER MATTERS. Mr. Withy spoke of last seasion's stonewall, of which he said he did not feel proud, but fighting had been forced upon them. He said he would support the Premier if he introduced an Electoral Bill, because under the present system proper representation was impossible. Each elector should have an annual right bearing his signature, and on presenting that right, should be compelled to sign a paper, so that personation would mean forgery. (Applause.) He warned the electors against the attempt to charge the liabilities of certain Harbour Boards to the colonial taxpayer, and said that it should be sternly resisted. In concluding his address, he contended that those whose whole maintenance was derived from the State should not be allowed to vote, and said that in one quarter in Wellington the Civil servants practically returned the member. On resuming his seat he was loudly applauded. Mr. Withy then answered several questions. He also advised constituents to follow the example reported in the Herald of the pravous day, at Aratapu, where the electors had met and had decided upon a platform. On the motion of Mr. Thompson, seconded by Mr. Cleveland, Mr. Withy received a vote of confidence, given unanimous!}'.