PARLIAMENT.

Southland Times, Issue 13504, 22 July 1896, Page 3

PARLIAMENT.

(By Telegraph.) HOUSE OF REPRESENTATIVES. Wellington, July 21. Mr Seddon gave notice to introduce a Constitution Act Amendment Bill and said he would at the same time move to withdraw the Legislative Council Act Amendment Bill at present on the Order Paper. In reply to Mr Steward, who asked whether the Government Life Insurance Department could not reduce its rate of interest upon advances on policies to 5 per cent, which was the amount charged by the A. M. P. Society, Mr Seddon said the matter would have the careful consideration of the Department. He pointed out, however, that the Society had not made by any means the reduction mentioned by the hon. gentleman, as the rate of interest J had been brought down by the Advances to Settlers Act. It was only right that the Insurance Department should I fall into line with the reduction and he I would see what could be done. h Replying to Mr Millar, who asked for the "establishment of a mint, Mr Seddon said that when the Government received the necessary authority from Parliament he would be prepared to carry a proposal into effect. To have a mint in the colony would establish • a very costly department. The time might come when it would be necessary to establish a mint, and when that time arrived the matter would be taken into consideration. Replying to further questions, it was stated—That the indications of the existence of coal deposits on the Cheviot estate were not sufficient to warrant the Government in incurring further expense in prosi pecting.—That complaints had been made 1 to the Government as to the treatment of 1 patients in Sunnyside asylum, but they have ' been proved to be groundless and other I charges were being investigated by the proper i authorities—That Mr C. C. Barron, late chief of the Hansard staff, was not entitled I to a pension and it was questionable whether I he was entitled to the compensation received by ordinary Civil servants. However,under the circumstances the Government was prepared to give Mr Barron compensation, but could not grant him a pension. Mr Seddon moved that the House adjourn until 7.30 ns a mark oi respect to the memory

of the late Hon. Robert Pharazyn, M.L.0., J < who, ha said, had been a worthy colonist. < He referred to the friendship that had 1 existed between Mr Pharazyn and Mr ] Ballance and said that although he (Mr 1 Seddon) did not always agree with Mr t Pharazyn’s political actions he recognised « that he acted from conscientious motives.— ’ Captain Russell seconded the motion. The 1 late Mr Pharazyn had pa' h d away without leaving a single enemy in Parliament and he (Captain Russell) thought how much, memhers might do to make their lives in the ’ House happier if they would endeavour to < cultivate feelings of friendship and not be so 1 severe in their comments on one another. — ’ Messrs Duthie and Willis having added « their tribute of respect the motion was 1 agreed to and the House rose. ‘ EVENING SITTING. f The debate on the Financial Statement 1 was opened by Captain Russell who said ho 1 proposed to take a retrospective view of the • state of the country in the years occupied 1 by the present regime on the Treasury benches and pointed to the fact that MrBallance had initiated the system of deriv- 1 ing money from sinking funds which bad * been followed by Mr Ward. The policy of 1 self-reliance and non-borrowing had never been adverted to. Going back to the time 1 of the first Financial Statement delivered J by Mr Ballance Captain Russell pointed out ! that it was delivered two months after tho Atkinson administration left office and I showed a surplus of L 143.965, which was a genuine exhibition of the actual excess of • revenue over expenditure resulting from the 1 operations of the Atkinson Government. He quoted figures which he claimed showed that the finance was fairly, strong and sound when tho present regime took office and so satisfactory were the finances that Mr Ballance . was able to state that there was no necessity for the colony to rely on the foreign moneylender. His Government adopted the motto of “ Self-reliance and non-borrowing,” but he (Captain Russell) claimed that this really belonged to their predecessors in office, viz., the Atkinson Ministry. He traced the various financial operations of the present regime, and said that in 1893 the cry was still “self-reliance,” but in that year several schemes were brought down which Ministers claimed.would be selfsupporting, but which, he contended, really meant borrowing. Up to 1893 tho Government had lived on their predecessors and on the conversion of loans. In 1895 the administration of the Government began to bear fruit, and the Colonial Treasurer had to devise several means of raising money, including increased taxes through the Customs on the necessaries of life. Non-resident commercial travellers and native lands also came in for taxation, and in addition the local bodies’ sinking funds were seized. Coming to the present year Captain Bussell said tho savings of their predecessors were all exhausted, and the sinking funds were practically all gone. This was why the Government had to borrow a million, as proposed in the statement, and it meant that an extra L 35,000 would ‘ have to be annually wrung from the tax- J payers to pay the interest. Jobs, blunders, j and harassment had been the retrospect of the past five years, and as far as he could see the outlook was cheerless. Referring to the national debt he pointed out that the annual increase during the laut Atkinson Government was L 482,324, while the annual increase during the term of the Ballance- 1 Seddon Governments was L 919.363. There was now a steady decrease in our two principal sources of revenue —viz., customs and railways, which showed that the oft- t repeated statement that the Government 1 had a strong finance was entirely misleading. He quoted extensively from figures in support of his contention. He admitted that there was an increase in the customs revenue last year, but contended that was due to the increased taxation imposed last session. As to the railways he said that taking into consideration the new payments for the carriage of mails, Government officials, etc., the railway revenue last year was £30,000 less than in 1893. He condemned this practice of diluting one department with the expenditure of another, which was done apparently to swell the revenue. The Financial Statement of this year proved that the contention he had always held that the finances were weak was a correct one, for it showed that the whole scheme of Ministerial finance had broken down and that their policy had proved of no avail. Had it not been for the seizure of the sinking funds and the use of the Land Fund there would have been a deficit this year of £26,246, which showed that the colony was spending considerably more than it could afford. He strongly denounced the seizure of the sinking funds, which he characterised as a most immoral proceeding and one that must land the colony in financial disaster in the end. There was one proposal in the Budget which he hoped the House would view with the greatest suspicion : it was to abolish the sinking funds in connection with the Advances to Settlers loan. In conclusion ho expressed regret that he was prevented by the time limit from referring to all the subjects he had intended to. Mr Hall-Jones said it was amusing to hear the hon. gentleman refer to the virtues of a non-bon’owing policy. He had only to oast his miud back a few years to the time when he was identified with Governments which had borrowed extensively, and Capt. Russell had himself on one occasion advocated a loan ■ of 20 millions. In criticising this year’s Statement Captain Russell had forgotten to ; point out that L 250.000 had been added last year out of revenue to the Public Works Fund. As to what Captain Russell had said about the decrease in railway revenue Mr Hall-Jones quoted figures to show that the decrease was entirely due to the concessions in freights, etc., granted to settlers. In spite of this the revenue had kept up well. Captain Russell had objected to the Postal Department being charged for the carriage of mails, etc., but in making this charge the Government were only doing what was done in every other colony in Australasia. With regard to the Customs revenue he pointed out that the largest increases were on articles that had not been touched in last session’s tariff, and he thought the hon. gentleman should be fair in his quotations. He contended that the Government were still a non-borrowing Govern- , ment and in reply to what Captain Russell | hud said about tho increase in the National j debt he pointed out that tho interest paid in I 1891 was L 1,874,575, while in the present year it was L 1,720,573. Particulars laid on the table of the House showed that the Advances to Settlers Department was paying its way and that a surplus of L5OOO per annum was derived from the investment of its funds. In reckoning the increase in the National debt allowance should be made for the sum of L 500,000 which had been paid to the Bank of New Zealand and was guaranteed by the bank. The money raised for the purchase of lands and, land for settlement was returning interest and very large savings in interest had been effected by the system of loan conversion. Captain Russell might be right in saying that tho cash from land sales should not be added to the revenue, but why had his Government used it ? During the time they were in office they had obtained L 1,192,120 in this way. It was easy enough to say that if you took this and that source of revenue away the Government would show a deficit. Captain Russell had a perfect right as leader of the Opposition to criticise the Budget, but he should avoid mis-statements. Mr Allen said that, Mr Hall-Jones, when he had changed his seat had also changed his opinions and was guilty of those inaccuracies of which the Opposition were 1 always being accused. As to railway finances he contended that the expenditure last year was almost the same as that of the previous i year while the revenue showed a falling off of L6OOO. He thought the Opposition > rightly claimed that of the increased Cua- ■ toms revenue L58.0C0 was due to increased ■ taxation. Mr Hall-Jones had claimed that : the interest charges on the National debt f were now L 154.000 less than in 1891, but 3 reference to the Public Accounts Committee r of last session would show that there was an r increase of LBO.OOO. He combated the a assertion that tho Advances to Settlers De--1 partment was paying, and said the Governr ment had had to admit in black and white 1 that the operations of that department this r year showed a loss of L 31.000. Hecomplained - of the unsatisfactory way in which the t accounts cf that office were kept, and said they did not afford members of the House n sufficient information as to the working of y the department, The Government claimed

that a saving in interest had resulted kom their loan conversions, but the colony would find that these conversions were of a disappointing character. They were not in reality conversions, for the operation simply amounted to this : a loan was falling due and it was paid off by floating another loan, tho object being to seize the sinking fund which was set free. . Mr E. M. Smith spoke in support of tho Government’s policy, whioh was calculated to settle the country. He urged that the Government should bring in a Consolidation of Local Loans Bill and he contended that instead of going in for- a paltry million the Government should have taken his advice and gone in for borrowing five millions to purchase native lands and develop tho country. Mr McGowan on the whole commended the Financial Statement, but claimed that as this was a Liberal Government they should decrease the duties on the necessaries of life instead of spending the surplus on public works. He regretted there had want of interest on the part of the Government in regard to the goldmining industry; if they had done more to encourage it it would have been in a far better position than at present. He appealed to the House to assist in the construction of roads and tracks on the goldfields as the money could not be better spent in the interests of the colony. He spoke at some length on the necessity of encouraging the goldmining industry. The debate was adjourned on the motion of Mr Budilo, and the House rose at midnight.