GENERAL ASSEMBLY.

Otago Daily Times, Issue 15540, 23 August 1912, Page 2

GENERAL ASSEMBLY.

LEGISLATIVE COUNCIL.

(Abridged from Press Association telegram.) WELLINGTON", August 22. Tho Council met at 2.30 p.m. LETTER Ob' THANKS.

Mrs Hirst ami family wrote expressing thanks for the sympathy tendered to them in their rccwit bereavement.

A HILL PASSED.

The Tatluun Trust .Invocation Bill (the Hon. Mr Simuelj was road a third time and passed, -

HOUSE OF REPRESENTATIVES.

Tho House met at 2.30 p.m.

THE TATHAM TRUST.

The Tatham Trust Invocation Billi was received from the legislative Council and waa read a first time. THE FINANCIAL DEBATE. Mr ESOOTT continued the debate on tJio Budget. Ho contended that tho Crown should have acquired thc_Mok.au estato instead of allowing a syndicate exploit the public. Tho timo l'<id arl "', when outside banking concerns should be allowod to operate in New Zealand awl bring in tlieir available capital. So soon as they were able to furnish tho Advances Department with sufficient money that institution might remove the restrictions on advances to pay off the existing mortgages. Had the policy of making roads •in advance of land settlement been tulopled in the past land settlement should have been on a more satisfactory basis. Dealing with 00-operativo works, he thought tho men should be allowed to mako as much as they liked, and choose their own mates. Under this systwn tho good men would ho got together and tho best work would consequently result. He favoured small contracts and piecework on co-operative works instead of day labour. He wn6 convinced that more work would result under that system. He wis pleased to see provision in (the Budget for loans to local bodies. This would allow of the making of roads ami bridges so urgently needed in the back-blocks. Ho applauded the Government's proposal to bring down a Local Government Hill, and lie hoped tho Opjwsition would assist the measure when it was introduced. He approved of tho suggestion to break in tho gum lands, ami lie hoped Dalmatians there would bo naturalised and given an opportunity to settle on the land. Ho was opposed to landlordism in any form, and thought the Crown tejuats should be given the frecliold at tho original value. Ho pointed out that the State had never parted wholly with tho land, as the taxing powers always remained. A purchasing _ clause should be given to all lessors, with certain restriction* Mr J. C. THOMSON said the now Ciovernmont had taken office under very happy auspices. There was a full Exchequer, a prosperous country,, and a happy and contented people. The Government had been supplied with the brains of tho thinking people of New Zealand, inasmuch as the proposals outlined in the iiudgete of tho two previous Governmonta were practically all included in the Masscy Budget. The new Administration had sliown that it waa prepared to support tho proposals -advocated by the Liberal party, and which the present Government, both in tlve House and on tiro platform, had condemned time and again. Ho advo--..1t0d the abolition of the Upper House, and said that a revising cliambcr similar to the Canadian system should take its plaoo. Ho was opposed to tho proposals for (lie reform of tho civil service. Reform could be carried out in tho direction of saving money or pchaps getting more work for tho money paid. The salaries might- well be revised and adjusted. It was necessary to watch very carefully tho defence system and the expenditure upon it, Tho people of New .-..land had been told by tho late Opposition over and over again that the high cost of living was due to the high Customs taxation. If that wero so it was their first duly on getting into power to rcduoe the cost of living by reducing tho Customs taxation by at loaist £500,000, hut nothing of the kind was suggested in the Budget. The only decrease in taxa tion suggested was in regard to tho smaller estates under tho graduated land tax. New Zealand, according to tho Government before it attained olfioo, had been crushed down by the huge burden of 82 millions of national debt, and yet he first thing done by the new Government was to ask for a roan of 1J millions. 1 In; Public Debt E.vtinotion Act haxl been opposed by the late Opposition, but now it was adopting it, and extending its operations to liquidate all money borrowed under the State-guaranteed Advances Act. Mr OKUY said it was the duty of the Finance Minister to reinstate as soon as possible the Loans to Local Bodies Act. .Many districts would not have had roads Had it not been for that act tho scopo of the old-age pension scheme would have to he extended to include thrift} - people who had saved, say, up to £1000 during Uioir I lifetime. Something would have to bo done to establish a universal wnsion scheme. He was nut fatisliod that an elective Upper Houso would bo successful. Ho did not think it would be in I the interests of the Dominion tliat tho same people who elocted the Lower House should elect the Upper Houso. He favoured a revisory Chamber. Ho suggested a property qualification of £10 to i)3O so that a different class of people would exercise tho franchise. Dealing with tariff revision, lie said that every manufacturer was pulling to get an alteration, and it could hardly bo expected that the new. Minister of Customs should bring in a bill during the first session. If they gave him time to study during the recess tho Minister would be prepared lo bring down alterations next session. The peojjlc might do much by supporting local industries. Ho would like to seo encouragement given to the iron industry, and he would support any reasonable bonus for this purpose. No encouragemcnt had been given to work tho Tarenaki iroiisand and other deposits. Tho Budget proposed to allow boring plants to come in free, and he should iifeo toseo the plant used in the oil industry similarly admitted. Numerous inquiries had been mado for oil, and there was an assured market for the product. He did not agree with membors who disapproved of the appointment of the Hon. Thomas Mackenzie as High Commissioner. Tho Government had shown great wisdom in tho ap|Kwntment. If Mr Mackenzie did not go Home as a figurehead ho went as a worker. They wanted EOine person to sec that they were getting value for tho huge expenditure in the Commissioner's office. He was one ot those who thought they did not get full benefits from that expenditure. Ho advocated a vigorous policy of immigration to increase the productiveness of tno land. Dr XKWMAX held that the raising of loans had been in defianco of all ideas of jwlitiuil oooiKimy. He did not agree with the idea of sinking funds. He know of dozens of cases where needy Treasurers had " collared " these funds. He hoped th« Minister of Finance would employ him- ( self during the recjss not to see what ho could do with taxation, but how much he could make out of revenue. Ho advocated the nationalisation of tho oilfields and water-power energy. He also saw a .possible addition to tho country's funds by the establishment of a mint in New Zealand. Mr HIXE said the Budget had been praised from one end of New Zealand to the other. He believed tliat no Ministry should take out of the pockets of the people more money than was actually needed for tlie requirements of the country. The money needed for tho building up of works for future generations should be taken from borrowed money. Referring to the Customs taxation, he said the Go. venment was unable to do anything until it- received the report of the Cost of Living Commission. Personally, he thought that taxation wis being levied on an altogether wrong basis. It was regrettable that food stuffs and wearing apparel

worn taxed. It would take months of studious thought to bring about a satisfactory slate of tilings in regard to Native lands, and the llovorninenl, wn« wise to hold this question over till next session. Ho had not the slightest doubt that the Legislative Council Election Hill would bccomo law. The civil service reform was a .step in the right direction, ami would remove patronage. This policy, lie claimed, had been laid down on .lul'y 7, Hill, long before the Mackenzie Ministry came into power. Certain members on Iho other side had como in on the votes for the: Reform party.—(Opimsition laughter.) Mr Hiue said lie thought the conference on the.Ueal Government Hill wit; of unbounded advantage, and its decision would 1)0 useful to the present party mi power. The Government was tooknis: for the reform of local government a* weli i as of the public works system. He <tnl not condemn the co-operative system, but said that men were not given the chance tlwy should have. The demand for nighoi wages came from the fact that mcom potent men were put alongside good me:i lie did not believe that they got-' 15s worth of work for each £1 spent. The co-opera-tive system was initialed for relief worKs, and the remedy was to differentiate he twecn voung and old men. Mr T. W. RHOPKB said he hoped the day would conic when the Advances Department woidd he able to do without borrowing. He honed the Second Ballot Act would lie rescinded, 110 advocated the prosecution of deep level minincr, holdins that with the assistance of the Governmont niiicli gornl could be effected in that direction. There was no reason to believe that the wealth of the country had been exhausted from a milling point of V,< The debate was adjourned and the Houss roso at 11.30 p.m.