THE GOVERNMENT.

Southland Times, Issue 14032, 13 February 1909, Page 5

THE GOVERNMENT.

BAD FINANCE. VXD BAD MANAGEMENT. MR A. Vv. RUTHERFORD LOQUITOR (Special To The Times.) CHRISTCHURCH. Fob. 12. Mr A. W. Rutherford, ex M.U. for Huruuui, has a letter iu this morning "Lyttelton Times” making a violent attack on the financial policy aiui administration of the Government. He says. "The troubles ahead of us will come from the business of the dominion tains run on unsound lines. lam aware that Sir Joseph did not inaugurate that unsound policy; that was dome by his predecessor, and the continuance of that policy was endorsed by the electors last November, lienee ray comment at 1 Runner that until the dominion had touched llie bedrock of bad times its people would not realise the financial saturnalia they had for years indulged in. Sir Joseph cannot now call a halt. If lie 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 recognises that it must end in disaster. "On the introduction of our old age pensions scheme, which now costs us upwards of .‘2 JOu.ecu a year, we were told that its effect would be to materially reduce eleemosynary aid. This has not proved to be the case. Lest some hostile critic should charge me witii having being opposed to the Old Age Pensions Act. let me assure him that such is not so. In tins case I am a “humanitarian" and not a business I man. None of our superannuation schemes are actuarily sound; every one of them is subsidised from the consolidated revenue. The national annuities bill, circulated last session, and to be introduced next session, involves a subsidy of 2b per cent. In the case of pneumoncouiosis or min- : ers phthisis, 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 proportion on record. It is the giving of an illimitable amount of bonus on the output of coal for the benefit of the miners and the coal pit owners at the cost of the consolidated revenue. We ran State coal miu-.s which arc made to pay by charging the Government, the chief consumer, twenty shillings a ton as against It’s dd charged to private consumers.' “Six million pounds have been lent by the Advances to Settlers Office, much f it on security oi such an evanescent nature as improvements. This class of security is sound only so long as the borrower is sailing gaily along on the bowing tide of prosperity. Lmet year, owing to the hum:) in the value of primary produce many Crown tenants could not t ay their rents nor the borrowers the interest on the money advanced them, and the Advances to Settlers office rushed for money. One million , not;.ids v;a.- lent during the first six | months of the year. Mo.-tut this was | advanced in anticipation of the pas- i sing of the loan bill for one million, j A judicious supply of money to settlors is essential to their success: hut ; they have become debauched by the 1 facilities placed at their disposal for ; obtaining comparatively large sums. | Ail the Departments are over-manned. The work of the country could h>- per- | formed by two-thirds of the present j staff —any Government official will tell you that. "Tile Government policy—and it is the policy that has • naided the Government to retain its I.old of ofiice . for so long a period—is to borrow, remit taxation on popular lin-s. and make a generous expenditure. So lona j as the Government is in a position to j carry on; chat ; oiivy. so hmg will it i retain office. There are now. howew r. marked indications that that ; ...dice, perforce, is nearing its end. ; The Australian money market is ex- I hnusted. ami Sir Joseph, aft r seven y.-ars übst-raiou, has reverted to the London market. Our legislation is in the direction of evolutionary Socialism. and money K-nd-rs are not Socialists. The- Govern:;;- at L confront- ; Cu with dililculti- s sucii as no previous j Government iias had to contend aga- ! Inst. | "Labour’s demands, if acceded to | aw Dr. Findlay clearly showed by . statistical returns, would eliminate ■ the wry small profit now made py investors in industries. Labour claims , that that objection is not a valid one. I .-cause as capitalists dropped out their places would be taken by the ' State, which would better suit them, j The Government must borrow a: least .2tl.eea.pni. a year, or as an alternative increase taxation sullkieuily to make up any lesser sum to that, amount, li this were not done If),bud bread winners would ho thrown out of work, ami a worse debacle would occur than that which took [dace during the last year Sir H. Atkinson field ofiice. The reply to my criticism will be “stinking fish." That is the only reply that can he made. And what an idiotic reply it is. It is tantamount to saying T cannot r-Tute your facts or your deductions therefrom, but i'll heave half a brick at you.' "