PARLIAMENT.

Colonist, Volume LI, Issue 12680, 27 October 1909, Page 4

PARLIAMENT.

L United I'b£si> Association. j Wellington, Oct. 26. THE HOUSE. The House met at 7.30 p.m. The following Bills were introduced by Governor's message and read a hist time : — New * Zealand State Guaranteed Advances aud Land and inoonie Tax. Sir J. G. Ward moved the second reading of the Public Works aud Land Settlement Bill. He said ho had already explained the object of the Bill, and did not intend to repeat his remarks. The public indebtedness was frequently criticised, aud figures cited io show tho huge income, but it was hot" fair to mention these without stating how tlie money was invested, l'ne Opposition's attitude in criticis- , ivy tho Govermmeoit's finance while deuianding expenditure on public works was indefensible and inconsistent. Mr Massey condemned the unseemly haste in bringing in, a Bill providing for a loan of a million, when the House was only just informed of the financial position. Tho Dominion was too dependent on borrowed money, and there was too much secrecy observed in regard to the financial operations of the Government. He charged the Premier with misleading the country in regard to tho recent loan. He was glad to see tlio Government go out of tlie country for its loans. He declared there was a deficiency ou the first six months of the year of £12,500, yet the Treasurer by bringing forward- the surplus from last year made out a credit balance, which was unbusinesslike. Ho expected before the session eaided a proposal for increased taxation to be put before the House. Ho urged that something be done to encourage British. investors to invest money in the Dominion. Money was dearer for tho last twelve months than for tho pas* eighteen years. Mr Ell said tho incidence of taxation had bean in tlie direction of .lightening the burden of the poorer classes, and increasing the tax on tho wealthier people. Mr Massey could rest assured that future taxation would .not be upon the small settlors. Mr Allen said it could not be den:od the public indebtedness was incrcasinc, and the railways were not productive. He contended we were not paying interest out of ordinary revenue, and we have been borrowing £66,000 a year up to last year for the purposo of paying interest. He held that the Government should lind out actual needs before borrowing, instead of borrowing first and tlieai allocating the whole amount, which was bad in principle, aaid Had a damaging effect on the credit of the country. He hoped the Government .would cut down expenditure, and make the present loan last till March, 1911. He said a great deal of waste was going on in connection with public buildings, and it was scandalous to see the expenditure on Parliamentary buildings. Mr Herries, while supporting tho bill, said the Premier should point to a limitation of future expenditure Iho progressive borrowing policy should be accompanied by a piogrefisive land policy. He criticised tho investment account, and the using of money borrowed for a certain purpose for another. He said much wasteful expenditure, was connected with the making of roads. The Hon. R. McKonzi© defended the co-operative works, which ho K-ud were, satisfactory, and giving tho country good value for the money spent. Replying to Mr Allen's statement that tlie Government should cease borrowing for public works till 1911, Mr McKenzie said ho believed 1 that tbo loan would havo to last till then, and it therefore behoved racmhors to exercise self-denial in making requests for expenditure. Referring to Mr Massey's criticism of the expenditure on public buildings, Mr MoKenzie held these were of a highly reproductive character, as they obviated tile Government paying rents. Mr Lang considered the expenditure on road construction by cooperative labour was wasteful. Mr Laurenson refuted the contention that capital had been driven out "f tlie country. They could not prevent booms and depression until tlie land problem was settled. Regarding the strictures of the Opposition i on borrowing, lie preferred to assist in abolishinc borrowing if the Opposition would agree to" taxation on those able to bear it.