GENERAL ASSEMBLY.

Otago Daily Times, Issue 12415, 26 July 1902, Page 8

GENERAL ASSEMBLY.

HOUSE 1 OF REPRESENTATIVES. FRIDAY, .IULY 25. The Howe met at 2.30 p.m. THE COLONY'S FINANCES. - An Imprest Supply Bill for £575,000 was introduced "by Governor's Message. Of this amount, £175,000 was for salaries, wages, etc., and £100,000 was for trausfcr from tho Consolidated Fund to the Public Works Fund. / Mr HERRIES pointed out that only about £400,000 had lieen spent on public works during the past quarter, much lea than usual, the average being £500,000 or £600,000. Ho, hoped public works would be pushed oil, and not left to go to rack and ruin. Although thero was a large sum to the credit of thg. fund, it was no uso voting money unless 'it was spent. Mr MASSEY said the last edition of the Labour Journal stated that there are now 400 men at work on the North Island Trunk railway, against 1100 employed pn the work last December. Did tho Minister intend to reinstate those men? Mr MONK could not realise where all tho money was going, and yet no progress was being made. Tho Hon, Mr HALL-JONES said, the House must bear in mind that the Public Works Fund had to last till the 3lst of March next and three months afterwards. He would not know where lie was till tho Loan Bill was passed, and until' that borrowing authority was given it would be unwise to put on many more men. When that authority was given he hoped to .mako a decided increase in the number of men employed on the principal works. Mr G. W. RUSSELL said the Consolidated Fund showed a deficit at the end of tho June quarter. - Mi' we were coming to a crisis, and no one could deny- that our prospects were not as as they were three or four years ago. Sir J. G. WARD explained the deficit at tho end of the June quarter by stating that last year they commenced with a big credit balance of £530,000, but at tho beginning of this year they had only a balance of £270,000. Everyone kne\v that the results from tho revenue Were not so great at the beginning of the year as at the end 'of the year. During the last two years the financial .world had been completely out of joint, and New Zealand had stood off the market- and financed until a favourable opportunity, when they floated a loan at 94. There were people in the colony who said that the finances of the colony were depressed for speculative purposes in the Old Country, and to this Sir Joseph took strong exception. He went on to say that immediately the necessary authority was given in the Loan Bill the Government could get the money, but until that it would be very unwise to increase the public works expenditure. Mr JAMES ALLEN said objection had been taken to the naturo of tho criticism of the colony's finances indulged in by the Opposition; on the ground that they would do the colony harm in tho 0111 Country, but he contended that whatever harm was done arose from misstatements of the position from the'' Ministerial benches, Ho criticised Sir J. G. Ward's figures regarding the position of the colony in the comparative June quarters of 1801-1902, and urged that the' position should bo clearly, stated for the.'people at Home. Sir J. G. WARD repeated that tho figures ■ for the Juno quarter of the present year showed a favourable comparison with those for the June quarter of the previous year. He objected to a. comparison being drawn between the quarters of this year piecemeal. A fair comparison could only be mado on the four quarters. Mr MASSEY said it was not true that members on that side of tho House were anxious to. decry the credit of the colony. Mr HORNSBY strongly complained'that statemonts damagine to tho credit of tho colpny were cabled Home by certain people, whose efforts during the last 11 years had been to smash the credit of the colony on the London market. This' was most improper and unpatriotic conduct. Tho disappointed debenture-holders of the Midland Railway Company were aided apd abetted by people in tliia eolouy, and that sort of thing had been done by members of tho Opposition ever sineo Mr Ballance came into office. Mr JAMES ALLEN said there was only one answer t'o what was said by Mr Ilornsby, and tlint was a flat denial. Ho hoped the loan would be floated, because lie understood that if the .money was not soon available public works would have to cease. Mr THOMAS MACKENZIE said lie had been in the Old Country for several years, but he never saw a. man from New Zealand there who did not drop altogether his party politics and units in defence of tho colony in every particular. Sir J. G. WARD said what he objected to' was tho statement by Mr Pirani that the Government would not bo able to raise the money in the Loan Bill even when it was passed. Ho repeated that no move unfair criticism could be entered upon than that of comparing the figures of individual quarters. Several other members also took part in the discussion, which was interrupted by the 5.30 adjournment. EVENING SITTING. j

The House resumed at 7.30. j IMPREST SUPPLY. In the course of further discussion on the Imprest Supply Bill, Mr PIRAjS'I pointed out that certain Post Office funds were nit iccounlcd for among the. public accounts, and asked if they had not been used by way of imprest instead of being.paid into the public accounts. Sir J. G. WARD denied this, and declared that these funds had not been devoted to any purposes outside of the Postal Department. Thev had not been used for tho payment of old-age pensions. Replying to other speakers, Sir J. G. . WARD said that no member of the Government was averse to criticism of the fii antes of tho colony, but what Ministers complained of was the apparent desire to question the correctness of the financial position as set out by the Government, and thus create a doubt which would be used against tho best interests of the colony in the Mother Couniry. There was no necessity whatever to withold anything in connection with the Treasury of the colony. There was nothing in our financial position that should cause any uneasiness, and if their opponents thought they wore going to slop the colony getting money at a fair nrice they were making a great mistake. The financial position was sound, and the Government could get all the money they wanted to carry out their policy. The bill then passed its final stages. ; THE LOAN BILL. The adjourned debate on the second reading of tho Aid to Public Works and Land for Settlements Bill was resumed by Mr E. M. SMITH, who spoke of the great resources posseted by the colony and the bright prospcets of the future. Tho only complaint he had to make against tho Government in connection v/it'i their borrowing proposals wa? that they did not raise sufficient money to satisfy him. They should borrow a substantial stun and devote it to the completion of necessary public works. . Mr M'GUIRE condemned the system of co-operative works, under which, he contended, money was frittered away an valuable time lost. Public works should be let in small contracts. He thought more consideration should be extended to the fanners, who were backbone of the country. Air THOMAS MACKENZIE believed in C'O-oportltivc works under certain conditions , was perfectly satisfied that the to--1 operation carried on in this colony for some time past required very dose investigation. The colony was not getting a fair return for tiie money it was paving iind»>- our present system of co-operation* Considering tho recent loan experiences of some of tho other : colonics and l!io unsettled state of the Home money market, was it not possible, he asked, to delay the placing of the proposed loan, when they might not gel more than 92 or 93? Jlin colony would probably have to pay too ■ ■ a yirior for r. loan just now. Mr spoko strongiv in favour

... ...v v. „„„ m lm . i.'cunn oi l!if? iViniinnd railway to connect the East and West toasts of the South Island. Ho pointed out the advantages that would accrue to both sides of the islmul by the completion of the line, and laid csperi.il stress on the contention that with a through line tlio timber and coal Industrie? of the A?est Coast would be greatly assisted, while the cost of timber and coal to the consumer in Canterbury \vcukl ho considerably mluced hy reason of the cnoaunegs of riiihvay haulage as compared with the existing svstcm of trans. Tort. He considered the Canterbury-West Coast jjootion of tho Midland railway and the North Island Main Trunk railway national works of the first importance, but lie could not understand how the Govern- ; lr .ent could bring forward tlio Waipara- • Picton lino as a work of national importance. Mr BOLLARD complained of the slow progress that had been made on the North Island Main Trunk' line. The policy of the Government in having 16 different railways ur.der construction at once was anything but statesmanlike. In his opinion, the policy of tlie Government was ono of borrowing I and. sauanderintr. Criticism? the managc-

mcut of the. railway.;, Mr Bollard asserted that a largo amount of capital had been Utttl to bolster lip the revenue. The Hon. Mr MILLS objected to certain terms used by .Mr liollurd, especially the assertion tlint constituencies wore being bribed. He ridiculed the dismal prophecies of members of tho Opposition. The last, loan, bo asserted, was a pronounced success in viow of the exceptional condition of the London money market. As for tlio stoppage of public works, the Minister of rublie Works bad done what any business man would have done under ther-3 circumstances. He regarded tlio North Island Main Trunk line as a work of the first national importance, and placed the Wai-psra-Ficton section next to it. The latter was a national lino in every sense of the term, and its completion would open up a large area of laud suitable for close settlement. besides which it would bring tho North and South Islands within easy reach of each other p*r medium of a fast ferry service across Cook Strait. Mr LANG strongly urged Sic completion of tho North Tshind Main Trunk line. The money expended on co-operative works was not giving the return tho colony had a right to expert. He also advocated opening laud in-the King Country. At 12.35 Sir J. G. WARD suggested the adjournment of the debate till 2.150 on Wednesday, when he booed the bill would be put through all its stages. As there wero W or 15 more members who desired to' speak on tho bill, he thought it advisable to' adjourn for the night. The adjournment was earned by 48 to S, and the House rose at 12.40.