POLITICAL SITUATION.

Otago Witness, Issue 2210, 9 July 1896, Page 30

POLITICAL SITUATION.

INTERVIEW WITH Silt EOBERT

STOUT.

HIE GOVERNMENT FINANCIAL

BREAKDOWN.

THE ATTACK ON THE OOUKCIL.

(Fbom Otjh Own Cohhesfondgnt.) WHLMNOTOfI, July 5. In view of the recent' party developments in the House, the numerous speculations as to the

probable lines of the coming general election, and the persistent rumours as to the oollapae of the much-boasted ttrocg finance of the Government, 'I feel euro that the opinions of such an experienced and observant politician as Sir Eoberfc Stoat upon the present position and future outlook could ,not fail to' be of interest to your -readers, cens quently I called upon that gentleman on Saturday morning and asked for bie views on tbe situation. As usual, he was < able to throw n oon*u!t ruble amount of light ' upon the dubject. . " What is your view, Sir Robert," I asked, 11 of the present btate ot parties aod the probable outcome of recent developments in the House?" ." "I can hardly claim," Sir Robert replied, 11 to be an outsider, 'consequently I may be biassed in whatt say*, butf it is perfectly apparent , that many of the members who supported the Government bo sfroDgly in 1894 and io 1895 have tak*n up a more critical attitude, and are Bow looking more at measures than at Ministers. In faot I may lay that tome of the most Intelligent of the Government following are now declining to be diota'ed to by the Premier tither in caucus or out of oaucus. Of courae the Government whenever a member in tho Souee criticises them or opposes any of their measures at ouce aoouee him of being a Conjervative, whereas, as a matter of faot, the most Radical of their party are opposed to them. Indeed the Government it opposed by those who are asking for reforms advocated by the most progressive Liberals all over the world. It it not really a question of policy, but of men, aad there is a profound distrust of the Ministry even amongst those who do not belong to what is culled the Left Wing, and who at present vote with the Government apparently slavishly." "We are beginning to hear a .good deal, Sir Robwt, about the finanoial position, and there are i eporte current of an empty Treasury and a coming loan. What in your opinion is the real *fcate of affaire ? " "Tbe 6nuices of the colony are in this portion," was the reply, "no doubt owing to she reoant mining developments in the Auckland district, and in view of the fact that wool faas risen and wheat has kept up fairly well, (the purchasing power of the people .has increased, and in consequence of this the customs revenue is showing considerable elasticity. This, coupled with the increased dutte-* 'imposed \last session, will keep tbe customs revenue well up to the mark. But it must not be overlooked that the ' ordinary departmental expenditure ' during la«t year increased by a little over £100,000 as compared with tbe year before, and 1 apprehend there will this year si/ll be an ic crease in departmental expenditure. Then the aid to the revenue got oat of the Government loans to Iced bodies sinking funds will be smaller by a great deal than it was last year. It was £85,000 last year, while this fear' it will not be more than £30,000. There . will, therefore, be increased expenditure, white the revenue will not largely increase. The question therefore is whether, even supposing the ordinary revenue beeps up, they will be fcble to make an? larger advances to the public work* fund. I doubt that very much. Of course, if wool goes up and .grain goes up and the mining boom continues, their revenue may increase by « considerable sum, but that, of course, is problematical. The public works fund, is, howevor, exhausted. It is completely gone. When tbey took office En 1891 tbey had in hand in the three parts— the fund is divided .into three parts — over £1,000,000 • N w there is less than nothing. It is all gone, aud in order to carry on public works and keep things going they have taken £50,000 out of this year's consolidated fund. Moreover, against tbis public works fund they have liabilities to the exteut of half a million for oontraota let and works going on. " What have they to meet this with P " "Our public expenditure during last year averaged from £35,000 to £40,000 a month. Now seeing-tbat we have out of t'aat fund to find mooey forroads, lighthouses, tetegraphexteaeion, and railways, suppose they takr- out of the con- . aolidated fund tbifyear £200,000 (and J do not think the fund can \yell stand that) that amount' .would not more thanVpay halfjbe public ftrorbs expenditure." „ „„/ " If that is so.jb.qw^wiil they make "both £nds intet, Sir Robert ¥"*-■ "Well," he.^repjjed, '''they "m'uatf haye 1 sither loan m<oe'y or. additional taxation, and I would not be surprised to see au alteration made in the land tax in order to get additional revenue. They may hive to go in for a loan as well. The faot is their policy of getting aids for public works from the consolidated fuad has completely broken down, and their finance has come to an end. It mutt be either a loan or increased taxation. There is no other way out of it. Further, the loan for the North Island trunk line is exEausted, a.wT nothing has been done with this boon in Auckland. It would be of enormous advantage io ilsßfc <iUtriot and the "whole of the colony to bevy the North Island trunk line finished ; in he-, I believe the gain to Auckland would be greater than the gain to Wellington." ■ v Coming to auofcher matter, Sir Robert, may I ask, what do you think is (he real meaning of the crusade which the Premier is threatening to lead ugainet tbe Legislative Council ? " "Ac to tbab," Sir Robert replied, "if the Premier wishes to put the Council on a proper footing there is only one way to go about it. If we are to have a second Chamber at all, the ■econd Chamber mast have the right to veto measures or it would be useless. Mind I do not approve of their conduct in vetoing the Asiatic Restriction Bill, but it is absurd to say they mubt pass eveiy meaiure the Lower House passes. You might with as much reason contend that the House of Representatives must pass every bill proposed by the Council. It would be better to abolish the Chamber than take' its pvwer of veto. ' If the Coun- : oillors are not ie touch with the people the remedy is to h: found in having them elected by the people. 1 do not know if that would be 'possible, bat if it is, it must be on something like the Hare fcystem, the electorates comprising large districts. This has been advocated by .Sir Saunders and other*, but the Premier is evidently only fishing for something to go to the country on. He hss no srigiuftiity of poliov, and seeing that Mr Reid in

New South Wales hat made a great deal of a similar cry, Mr Seddon is ready to utilise this ory against the Council in the same way. Personally 1 am against an elective Counoil, and I believe a nominated 'Oounoil is on more democratic linae. It is absurd to rail against the Council for throwing out a measure. The Ministry of the day ought to select men to occupy seats in the Counoil not merely for their political opinions, bub alto for their past services, their ability, and their public worth. No nominations to the Upper Chamber were on these lines."

"On what lines do you think the coming election will be fought out P "

"That is very hard to say, but the real issues will be obscured if the Ministry can possibly obsoure them, as they are now doing in the House. The question is not so muoh now of measures as administration, and I have held that for a long while there are men opposed to the Government, men who are mere radical than the Ministry, and who know more about politics than Ministers do. The question ia whether we shall have an Administration in •jsrboin the people oan have confidence." " " What effect do you think the election will .have on the balance of power as between the various parties P " " I really cumot cay, I have myself studiously avoided any attempt to form a party, because I feel I cau Best do my duty to the country in criticising and exposing what I consider wrong."

•"And what will be the attitude of the Temperance party at ' the poll ? " was the last question.

" I believe the Temperance party as a whole are ia favour of honest government, and I think they are fully alive to the- necessity of returning tbe.ablett and best men to represent them, apart from party considerations."