Rangitikei Advocate. MONDAY, JUNE 10. 1907. SECOND EDITION. EDITORIAL NOTES

Rangitikei Advocate and Manawatu Argus, Volume XXXII, Issue 8834, 10 June 1907, Page 2

Rangitikei Advocate. MONDAY, JUNE 10. 1907. SECOND EDITION. EDITORIAL NOTES

"WE are so busy in New Zealand in giving the world a lead in advanced legislation that it hardly ever occurs to our politicians that we may possibly learn something from what is being done in other parts of the Empire. Yet. even here wo have heard some faint echoes of the splendid work accomplished in Egypt by Lord Cromer in rescuing that country from br'Bkruptcy, aud by dint of economy and careful administration placing its finances on a sound footing. It is therefore of some interest to note Lord Cromer's method of dealing with what laud reformers here would call the unearned increment in the value of the land irrigated by tho great Assouan dam, which will be paid for out of public funds. The situation appears to be closely parallel with that of ia-il-ways and other public works constructed in this country, from borrowed money. The AssolTan dam raises the value of all land irrigated by the waters of the Nile just as our railways, roads and bridge increase the value of laud to which they provide access. In his last report Lord Cromer deals with the question in two or tliree short sentences as follows :—'' In the first j.:lace, I would observe that there can bs no doubt of the enormous benefit which tho Assouan reservoir has conferred on Egypt. Tho actual direct gain to the Egyptian Treasury has, indeed, been insiguiAaut. The indirect grain has brou 'considerable, but is difficult to state precisely to what it amounts. The reason why the actual return to the Treasury has been small is ttiat it was thought best to impose a very light laud tax on the lands affected, and thus leave the benefits to be derived from the reservoir to fructify in the pockets of the population. On the other hand, the benefit to the country has been enormous. Sir William Gars tin estimates that the sale value of the lands already provided with perennial irrigation lias been increased by no less than £24,510,000, and, that, when the canals now in course of construction are completed, this "figure will rise to no less than £25,312,900. Tho increased rental value is already £1,460,000, and will j eventually amount to £2,022,350. The whole of this rise in value is directly attributable to the construction of the dam. In addition to this, the cotton crop, the value of which was estimated last year at £28,000,000, has been secured. " Can one coteeive our Minister of Lauds making such a statement as this? Twenty-four millions of pounds, directly due to the construction of a great public work, put into the pockets of landowners to fructify! A light land tax still further to enrich them! Does it not suggest that after all we may be entirely on the wrong tack, and that possibly Lord Cromer's methods may lead to more lasting prosperity than all the new fangled ideas which meet with such ready acceptance from our inexperienced and amateur lawniongers?

AN Auckland telegram on Saturday stated that the indebtedness of the city on March 31st 189 G was £002,000. Loans issued during the year made the gross indebtedness £730,900, and the net indebtedness £626,525. These figures cannot but strike us as very large for a borough, the population of which is only 37,733. We are not sufficiently acquainted with the details of Auckland city finance to know how the money has been spent, but it is worth noting that this enormous total has been reached, although the tramways are in the hands of a private company. Had the Northern city, like Wellington, undertaken a municipal tramway scheme the debt would not have fallen far short of a million. The question that naturally arises is whether siich enormous debts as these arc either necessary or advisable. Councils have to face certain expenditures which cannot be avoided, and it may well be argued that they should restrict themselves to these and rather encourage than prevent private enterprise in other fields. The upkeep of roads and footpaths is obviously a municipal duty which cannot bo left to private persons, and it will be generally admitted that drainage and water supply fall naturally to the Council. It is true that London obtains its water supply from private companies, but as any temptation to economise in the use of water is inimical to the interests of public health, it seems, on the whole, preferable that the whole body of ratepayers should bear the expense of the water supply, even though the poorer citizens profit to some extent at the cost of the more wealthy. Moreover, once a water supply has been established a comparatively small expenditure is required to keep it in working order,

and howew r unbusinesslike a council may be it cannot seriously affect the quantity or quality of the water col-

lected at the head works of the stipply. The management of water is clearly on quite a different footing from that of such business undertakings as gas works or tramways, which require constant atten-

tion to matters of detail in order to prevent serious loss. It is also to fee put into the balance against municipal trading that no rates can be collected froji sites or buildings occupied for sucli purposes. In a city like Wellington, where Government and [municipal buildings occupy a large area in the best part of the town, a very heavy burden is thrown on the private owner. At preseait there is a tendency to enlargo the scope of Government and municipal undertakings. We confess that wo should be glad to see a reaction in the opposite direction. The anxiety caused by large municipal indebtedness quite counterbalances any good results which are expected to accrue from, the business undertaken. The

results actually -.attained prove clearly enough that the ordinary Councillor has neither the time nor the knowledge necessary to manage business affairs other than his own, and therefore these should as far as possible be left in private hands.