The Star TUESDAY, SEPTEMBER 8, 1868.

Star (Christchurch), Issue 100, 8 September 1868, Page 2

The Star TUESDAY, SEPTEMBER 8, 1868.

At the conclusion of his Budget speech Mr Hall moved certain resolutions, which are understood to embody the financial policy of tbe Government — at present. What it may be in a few days, wheu pressure is brought to bear tipou Mr Stafford and his colleagues, it would be idle to speculate. The resolutions we have referred to were published by us in a recent issue, but it may be as well to •quote the first again, especially as Mr "J_Li!l announced that the Government, were prepared to stand or fall by the principle which it embodies. It is so unusual to hear such a declaration from the Government benches tbat we Must take care to do all honour to this. These are the terms of the " stand -or - fall " resolution : — " That in order to simplify the relations between the Colonial and Provincial Governments, to remove uncertainty from Provincial finance, and to facilitate the ultimate reduction of taxation, it is expedient that the system of Provincial charges on the GeueTrtl Revenue be abolished, that the Consolidated "Fund be at the disposal of the General Assembly, and be charged generally wiih the interest and sinking fund on the Colonial and Provincial loans, and with tbe expenses of the Colonial Government, including the maintenance of the harbour establishments " A little attention lo the above will show that tbe Government propose to

do certaiu things in order to attain certain ends. The objects which they desire to accomplish are — 1. To simplify the relations between the Colonial and Provincial Government-,. 2. To remove uncertainty from Provincial finance. 3. To facilitate the ultimate reduction of taxation. The means by which they hope to accomplish the foregoing are — 1. To abolish the system of Provincial charges ou tiie General revenue. 2. To place the consolidated fund at the disposal of the Assembly. 3. To charge the consolidated fund with the interest on all loans, General and Provincial, and with the expenses of the Colonial Government, including the maintenance of harbour-.. That is the Government policy, and we have now to inquire whether it is desirable, practicable, and consistent with other proposals emanating from the same quarter. No one will deny that it is very desirable to simplify the relations between the General and Provincial Governments, to remove uncertainty from Provincial finance, and, above all, to " facilitate" — by which we suppose Mr Hall means, prepare the way lor — a reduction in taxation. All these things are exceedingly proper, they are practicable, and it may be conceded that they are to a certain extent consistent with the general policy of the Government. But we wish our readers to keep steadily in view the maiu object — the severance qf all money connection between the General and Provincial Governments— aud to ask themselves whether Mr Hall's scheme provides for this, really and truly. Of course, we take it that most people are agreed as to the very great importance of this part of the scheme, and that the majority desire to see the financial partnership between the provinces and the General Government completely, not apparently, dissolved. It may be as well, at this stage, to remind our readers what evils this partnership has given rise to. First among these is that terrible curse of log-rolling. " The provinces may be divided into two classes — those that have and those that have not a land revenue. The first, as may be seen at a glance,are entirely dependent on the share they may receive of the customs or rather general revenue of the colony. . Thus, while the representatives of Canterbury and Otago might be inclined to agree to a large reduction in the taxation, because they have a land revenue to fall back upon, the representatives of Auckland, and the other North Island provinces, would strenuously oppose any reduction, because they have nothing to fall back upou. By reason of this very distinct difference, the Government in power has always been able to play one class of proviuces against the other. Those without land fund have done all they could to increase taxation, because the larger the customs revenue the larger the share allotted to them. Then, again, any land-fund province which had fallen into temporary difficulties would be sure to join the no-laud-fund provinces in raising as much general revenue as possible. And, generally, the system of partnership gave all the provinces an interest in keeping up taxation, for although one might be strongly in favour of reduction, its representatives would naturally say there was no use iv fighting for the impossible, and so they would join the ruck in order to mitigate what they could not cure, so far as their individual province was concerned. This, too, gave rise to log-rolling in another form. Our readers will see that the great object to be gained is, to cut the pro vinces off from all or any hope of sharing in the general revenue. That is the central article in the political creed of the Canterbury Financial Reform Association, and on the complete adoption of that depends our hope of relief from the burden of taxation. "We come now to inquire whether Mr Hall's financial proposals secure this, and we are bound to say that they do not. The accounts between the General and Provincial Governments are not closed by his proposals. He proposes to give each province so much per head of its popu lation out of the general revenue, and this sum is to be voted annually by the Assembly; that ia to say, the amount is not fixed by statute, but is left to be wrangled for, log-rolled for,

! and altered from year to year as the exigencies of a Ministry may demand. Again, we say, the partnership account is not closed, and therefore the Ministerial policy on finance is a sham, a delusion, and a snare, in its main feature. The no-land-fund provinces will combine, as before, to increase the seven shillings per head to ten, fifteen, or twenty shilling., as the case may be, and log-rolling, as before, will gnaw at he vitals of the colony till the people are taxed bejoud endurance.