PARLIAMENT.

New Zealand Herald, Volume XXXVIII, Issue 11745, 29 August 1901, Page 6

PARLIAMENT.

[BY TELEGRATH. —PRESS ASSOCIATION.] HOUSE OF REPRESENTATIVES. Wednesday. The House met at half-past two. Mr. Guinness, in the absence of the Speaker', took the chair. STUD BILL. The Stud Bill was read a first time. THE AUDITOR-GENERAL. A discussion arose upon the reading of a communication from the Auditor-General complaining that the half-million loan had given to investors a greater amount of interest than allowed by law, viz., four per cent. ; also that the consolidated account, instead of the revenue of the colony, was given as the security. On tho motion of Sir Joseph Ward, the Auditor-General's letter was ordered to be printed and referred to the Public Accounts Committee. A BREACH OF PRIVILEGE. Mr. Jackson Palmer, as chairman of the Goldfields* Committee, reported that a breach of 'privilege had been committed by the Dunedin Star in publishing certain evidence given before a committee before the committee had reported to the House. On the motion of Sir Joseph Ward, the House declared that a breach of privilege had been committed, and a committee was set up to inquire into how the information contained in the report in question had been obtained. :• The House rose at half-past five. The House resumed at half-past seven. THE FINANCIAL DEBATE. The debate on the Financial Statement was continued by Mr. Jas. Allen, whose speech on Friday night was interrupted by the half-past ten adjournment. He pointed out that the Government had power to borrow no less than £5,100,000 during the current year, which meant that the colony was living entirely on borrowed money. He complained that the non-settlement of the Midland railway difficulty would militate against the successful raising of loans on the London market. The cost of old age pensions was steadily increasing, and he urged that the whole system should be | placed on a better footing. He spoke in condemnation of the action or the Government in taking departmental funds, particularly those of the Post Office Savings Bank , and the Government Insurance Depart- : ments, at three per cent., in consequence of which the interest paid te depositors and policy-holders had fallen considerably. Mr. Withelord also spoke, criticising adversely the Factories Bill and other measures affecting industry. Mr. G. W. Russell complimented Mr. Jas. Allen upon the grasp and grip he had shown of the finances of the country, and said his speech demanded a reply from some leading .member of the Government. He went on to draw a comparison between the state of the finances of the colony under the Ballance regime and their condition as disclosed by the present Budget. There was a large increase in liabilities under the Consolidated Fund, the increase last year as compared with the preceding year being no less than £70,000. But this was a small item when ranged alongside the absolutely colossal increase that had taken place in connection with the Public Works Fund. In 1892 liabilities under this fund were £313,000; last year they amounted to £1,292,000, an increase of £802,000 as compared with the previous year. The Seddon Government had departed from every one of the cardinal principles upon which John Ballance had built up the Liberal party. This was particularly evident in the case of the national debt, which was increased by Mr. Ballance in two years by £785,000,' while in eight years Mr. Seddon had increased it by £10,415,000, although he admitted some of the latter amount had gone to interestbearing objects. The amount to be paid in interest during the ensuing year was no loss than £1,956,963. He also complained ''of the increase in Customs duties, the net amount of Customs taxation per head of population having increased from £2 8s 9d in 1891 to £2 16s 5d at the present time. Instead of allowing this increase, it should be the aim of.the Government to lessen the burden on the necessaries of life, which would have a beneficial bearing on the decrease in the birth rate and marriage rate. Mr. Ballance had laid it down that borrowing on the English market must cease, but "so far from this principle being adhered to New Zealand at the present time was absolutely dependent on the London market. Then; again, there was a vast increase in the public works expenditure. In 1892 Mr. Ballance spent £389,000, with which he stemmed the tide of emigration, and this amount has been swelled by Mr. Seddon until it totalled £1,307,000 last year, and £1,950,000 was required for the current year. In the face of these figures, Mr. Russell contended there must soon be drastic retrenchment, such as had never been known before in this colony. He also condemned the increase in the military vote, and protested against the attempt to create a military class in this country. On the whole the philosophy of the Budget could be summed up in the Epicurean phrase, " let us eat and drink, for to-morrow we die." He urged that the Government should do the honest thing by the Midland railway deben-ture-holders, and pay them a fair sum. He complained of the want of vigour in the land for settlement policy of the Government, and suggested they should go as far as legal powers allowed them, and it was particularly necessary they should get land in the North Island. In conclusion, he advised the Government to revert to the principles of Liberalism laid down by Mr. Ballance. Mr. Ell deprecated the large increase in Departmental expenditure revealed by the Estimates. The money expended upon the opening up of markets, on the Tourist Department, and on public health could be defended, but there was no excuse for the large increase in the charges for cablegrams and such items as £260 for the Review of Reviews. The increase in the public works expenditure was alarming, but the responsibility for it was upon members who increased their demands year by year. Too much revenue was being drawn from Customs duties upon articles in common use among the working people. He commended the increase required to pay old age pensions, holding that that scheme was a blessing to the country. Passing to social questions Mr. Ell dwelt upon the constantly increasing consumption of drinl:. The "amount impended per head of population had increased from £2 17s 6d in 1896 to £3 7s 6d in 1901. In .view of the spread of drunkenness he condemned any proposals to relax the licensing 'aws. Mr. Ell urged that the State should adopt the same method of creating credit as the bankers adopt, and remarked, incidentally,' that the progress of the country had oeen helped by the credit created b*- banks. It was on credit we had practically constructed our public works and carried on nearly all I the industries of the colony. The currency ought, he contended, 'to be placed on a more secure footing than at present, and that control of it should be taken by the State. He believed a referendum of electors would decide in favour of the establishment of a State bank. Mr. Lawry pointed out that Customs duties were in the main voluntary, and could not be collected unless people had the spending power. He described Mr. G. W. Russell's speech as a mass of flapdoodle, and said it was fortunate that not the slightest importance was attached to his utterances. As to the proposed legalising of the sale of liquor in the King Country, he urged that they simply asked that people in that district should have the same power and the same privileges as the people in the Clutha district. He deprecated the action of the Government in bringing in Bills which no one wanted, and which the whole country was resenting, the result being tc bring settlers into conflict with labour. Mr. Gilfedder moved the adjournment ol the debate, and tho House rose at" ten minutes to twelve.