THE GOVERNMENT POLICY

Otago Daily Times, Issue 14447, 13 February 1909, Page 5

THE GOVERNMENT POLICY

MR RUTHERFORD'S CRITICISM. (PnoM Our Owx Corbespoxdext.) CIIRISTCIIURCH, February 12. In a long letter to I he hyttelton Times Mr A. Vi. Rutherford replies to that paper's criticisms of his recent speech at 1) a inner, remarking that he had never declaimed against the Government for lavish bus rowing on the one hand, and, on the other hand, slanged it for not allocating more money to his electorate, lie goes on to explain move fully his reasons lor sharing the Prime Minister's optimism of the present time and near future, and disagreeing with him in regard to the more distant future. " 'The trouble ahead of us will come from the business of the Dominion being run on unsound lines. I am aware Sir Joseph did not inaugurate that unsound policy. That was done by his predecessors, and Sir Joseph cannot now call a halt. If he attempts drastic economical reforms the electors will give him a letter of introduction to Mr Massey. No sound business man would attempt to defend the Government's policy. He recognised it must end in disaster. For instance, our railways, inclusive of rolling stock, have cost £20.000.000. We lose something between £200,090 and £400,000 a year on our railways, I will assume that loss to be £3U0,000. We employ permanently 5000 co-operative labourers in addition to the necessary oflicials at a yearly cost of £600,000 for labour alone to construct railways on which we lose yearly £300,000. Our present railways are situated .in the most fertile country, and therefore are most productive of "traffic. They are in country in which they can be comparatively cheaply constructed. The railways of the future will be in less fertile country, and will be more costly to construct. The co-operative labour system was started in the first instance partly as a charitable institution, and in that respect it was a success. Now its ranks are largely filled with stalwart young fellows who, with a few exceptions, won't accept private employment. It. follows, therefore, that the Government must go on with the railways whether they pay or not. Our public buildings have' cost us £4,000,000. A very large portion of this vast sum was spent more for the purpose of providing employment than that the accommodation was required by the departments. Sir Joseph's building scheme for a Governor's residence and a new Parliament House and Government offices (and a very fine one it is, too), coupled with a new post office and new railway station, will involve an expenditure of £400,000 within the next four or Ave years if given effect to. As the departmental work of the country is going on in the existing buildings, it is obvious that the "proposed new buildings, which will provide much work for the artisans, are as much for the benefit of the said artisans and the shopkeepers whom they support as for departmental accommodation. It is not alone in Wellington that these building operations are being carried on— in a lesser degree, of course. On the introduction of our old-age pensions scheme, which now costs us upwards of £300,000 a year, we were told that its effect would be to materially reduce eleemosynary aid. This has not proved to be the case. None of our superannuation sch.cmes is actuarially sound. Every one of them is subsidised from the consolidated revenue. In the case of pneumoconiosis the Government, has agreed to indemnify the Government office against loss, thus rendering the Dominion liable to the possibility of an enormous loss. This is about the worst business proposition on record. We run State coal mines which are made to pay by charging the Government, its chief consumer, 20s a ton as against 10s 6d charged to private consumers. £6.000,000 have been lent by Ihe Advances to Settlers Office, much of it on security of such an evanescent nature as improvements. This class of security is sound only so long as the borrower is sailing gaily along on the flowing tide of prosperity. Last year, owing to the slump in the value of primary produce, many Crown tenants could not pay their rents, nor the borrowers the interest on the money advanced them, and the Advances to Settlers Oflice was rushed for money. All the departments are overmanned. The work of the country could be performed by two-thirds of the present staff. Any "Government official will tell you that the Government policy, and it is the policy that has enabled the Government to retain its hold of olHce for so long a period, is to borrow, remit taxation on popular lines, and a generous expenditure. So long as the Government is in a position to carry out that policy, so long will it retain office. There are now, however, marked indications that that policy perforce is nearing its end. The Australian money market, is exhausted, and Sir Joseph, after seven years' abstention, has reverted to the London market. The Government is confronted with difficulties such as no pre vions Government has had to contend against. Labour's demands, if acceded to. as Dr Fiudh'.y clearly showed by statistical returns, would elimiate the very small profit now made by investors in industries. The Government must borrow at least £2,000,000 a year, or, a;; an alternative, increase taxation sufcicntly to make up any lesser sum to that amount._ If this wore not done, 15.000 bread-winners would be thrown out of work, and a worse debacle would occur than, that which took place during the last year in which Sir Harry Atkinson held office."