INTERVIEW WITH THE PREMIER.

Otago Daily Times, Issue 9417, 3 May 1892, Page 2

INTERVIEW WITH THE PREMIER.

SOME INTERESTING INFORMATION.

(Fuom Ouh Own (JoHiiKsi'ONOHNr.)

Wki.unntox, May 2.

Tlic Premier left by this oveni.ig's steamer c for tbe .south. He goes on to Invercargill, and } expects to 1)0 buck in Wellington in 10 days, t I hail a short interview with him before he t stmiod, with tbe object of ascertaining the J tiimnciiU year's operations. , Tbe Hon. Mr Ballanci; said:—" "We do not \ intend to make public the actual figures and de- [ tails until I disclose them fully in my Financial Statement. We follow in this respect the course usually adopted by tbe Atkinson Government. 1 may tell you, however, that there is a very substantial surplus, considerably over LIOO,OOO, and this in addition to our having paid off LIOO.OOO of the lloating debt —in fact, we have paid olf L 150.000 of floating debt out of revenue and L 50,000 more out of the proceeds of loan conversions. You will remember 1 promised in my last Financial Statement to pay off LIOO.OOO out of conversions, which wo have paid, but we have paid olf 1,150,000 out of revenue, and still have a surplus of over LI 00,000. 1 intend to deliver my Financial Statement within a week after Parliament opens, and, hy-lbe-bye, I will open on the 23rd, and not on the 16th, the date originally talked of, as I want to have all my taxation returns complete before the House meets, so that I may be prepared to state our policy definitely when I know what revenue can be relied upon from the new taxation. And that reminds me" (Mr Ballancc mentioned): " Have you noticed the relative prices of our securities and those of New South Wales in the London market? Fifteen months ago our stocks stood 5£ per cent. lower than New South Wales stock, now they are both equal; both stand at the same price, and yet we see all that nonsense written about the injury to the colony's credit in London, caused by the Government's policy. It is the most utter rubbish. Look at the relative prices of our securities. The facts speak for themselves, and they are worth a thousand theories. Again, think of all thattalk about the withdrawal of capital, and look at the banks returning thirteen millions of deposits. Why, if a million or two millions should be withdrawn the colony would not even notice the difference, unless indeed in its making a little opening for the investment of some of the money now lying at deposit. And they say the rates of interest are being raised. That is absolutely incorrect. Ow the contrary, they are falling. I have the

means of judging as to that point. We have to lend out a great deal of money on behalf of the Government Insurance department and Public Trust Office, and we find it most difficult to get

even 5£ per cent, on really good security. There is nothing whatever in this cry about the withdrawal of capital and tho raising of interest rates. The whole cry is a mere sham and pretence, and I may tell you that we (the Government) mean to do all in our power to wean this colony from that servile dependence upon the London money market, and that constant, timid fear of shaking our credit there, We want the colony to learn to bo self-reliant and to stand on its own footing—tohavoacredit of its own. It is growing more and more into a position where this is possible. We shall do all in our power to inculcate such a feeling, but in any case the pre ent price of our securities is a complete answer to those who talk about want of confidence being felt in London."

I asked the Premier whether there was any ;ruth in the report that Ministers were desirous

to bring about a dissolution this year. The Premier said : <'No truth whatever. Of course, if we were to be defeated on a question of policy or administration, we should in that case claim an appeal to the country, and we, should not resign. We should have a claim to a dissolution. Or, again, if the Legislative Council were to reject or mutilate measures which we considered necessary or important ones, it is quite possible that in such a case we might, in accordance with well-recognised constitutional practice, appeal to the country on our policy before asking his Excellency to appoint a sufficient number of new Legislative Councillors to ensure the passing of measures approved by the country. There are other cases in which a dissolution might become necessary, but we do not anticipate such, and are not planning anything of the sort. Still, I may tell you we do not mean to have our policy defeated or our measures torn to pieces by the Legislative

Council. On that point we are quite deter mined."

"As for the Lower House," Mr Ballance continued, " I think it will be a stormy session. Don't you ? I don't believe we shall be beaten. But I think we shall have a good deal of hard fighting. We have unavoidably given offence to several, and they will be sure to attack us. As for Sir George Grey, if he does attack, as he is said to intend, on the question of taxing improvements over L3OOO in value, he will simply make himself ridiculous. He might ally himself and his party of ' discontents' with the Tory party, but their very speeches would be mutually destructive. It would be purely in favour of the property tax and of those most violently opposed to the Government joining together to attack the Government because their policy was a moderate and a cautious one. Naturally we should be only too glad to do without that tax on improvements if we coukl do so safely, but above all things the colony must be safe in its finance, and I, for one, will never consent to do anything that will shalte that safety. If we find we can dispense with the tax on improvements we shall be only too glad to do so ; but is it not absurd for Sir George Grey to take up that ground ? Why, the only people whom that tax on improvements over L3OOO will touch are the rich squatters and landowners. It is their battle he would be fighting, and not that of the masses. How would that fit in with all his professions ? No ; if he attempts such a course he can be completely crushed by a few speeches. The thing is too preposterous." I asked whether any new policy measures in addition to those of which he spoke in our last interview had yet been agreed upon or prepared. "No," Mr Ballance said ; "but a number of bills are in course of preparation and will be considered in Cabinet on my return 10 days hence. One is the Civil Service Bill. I have given instructions for the drafting of a bill embodying my own views on the organisation of the service, aud we have the bill drafted by the Civil Service Association, and wo shall proceed to compare the two and eudeavour to frame a measure that will be thoroughly effective, and that will be satisfactory all round. One point on which I have decided is as to the mode in which provision shall be made for retirement allowance or compensation. I shall not do it through the Public Trust Office, as was at first proposed, but through the Government Insurance department. The new scheme will not apply to officers previously in the service, but only to those who shall join after it comes into force. We propose that 5 per cent, of each olficer's salary shall be deducted and paid in as a premium towards the creation of a retirement or compensation fund based on a scale which is being drawn up by the department." " By the way," the Premier added, "I may tell you that the Government have replied to Sir John Lubbock's letter relative to the claim of the Taranaki Harbour Board debenture holders. The Governmentabsolutcly repudiate all liability on the part of the colony. We intend to appoint an officer (perhaps as a Royal Commissioner) to inquire into the question of the reserves, but that was not mentioned in the letter to Sir John Lubbock. In th .t we simply disclaimed all liability whatsoever." At this point the s.s. Wairarapa sounded her last whistle, aud our interview terminated.