THE BUDGET.

Star (Christchurch), Issue 10535, 9 August 1912, Page 1

THE BUDGET.

SOME FINANCIAL ASPECTS. COMMENT BY SIR JOSEPH WARD. [Froji Our Co7respondent.] WELLINGTON, August 8. In the course of an interview with a " Lyttelton Times" representative "Sir Joseph Ward said that there were certain aspects of the Financial Statement that deserved attention. Mr Allen proposed to raise a Public Works loan of £1,700,000, and it might be assumed by anyone not acquainted with the ordinary procedure that this sum, which was a quarter of a million in excess of last year's Public Works loan proposal, represented the total liability he was asking Parliament to undertake. But as a matter of fact it was evident that the new Govern ment was committing Parliament far more deeply. M.r Alien proposed to borrow under the irrigation clause of the 1911 Appropriation Act. In addition he must be intending to borrow for advances to settlers, advances to workers and advances to local bodies. A glance at an early clause of the Statement revealed the fact that last year the amount of the loans paid over by the Advances Office was about £3,500,000. It was impossible to estimate just what Mr Allen's proposals were, but clearly he was showing that the policy pursued by the Liberal Government was necessary and in the best interests of the country. " I don't say that the present amount is too much," said Sir Joseph, " but Mr Allen's Statement proves the point that I frequently raised, that the power of the Finance Minister to decide what amount of money shall be raised is controlled by the opinion of the Government as to the amount of money that is necessary for the Public Works which always are being demanded from all over the country."

Sir Joseph added that most of the proposals put forward by the Minister of Finance were too vague in outline to make exact criticism possible- It would be necessary to wait for the Bills. Many of the schemes, of course, were practically the same as those that had been submitted to the country by the Liberals, and as a member of the Liberal Party he was glad to find that the Conservative Opposition of the old days had changed its opinions very radically. Local government reform,_ invalidity insurance, workers' dwellings extension and other proposals now presented by Mr Allen nad all appeared" in Liberal Budgets of recent years. As far as the land question was concerned, the Liberals generally had long ago agreed that the leases in perpetuity might as well be turned into freeholcj flow that leases of that unprofitable kind had ceased to be issued. Even so stout a supporter of the leasehold as the "Lyttelton Times" had taken that view. The difference of opinion between the Government and the Opposition- was in connection with the terms of purchase. The sale of the renewable leases was another matter. He believed that on that point the Government would encounter very strong oppo-ition. It seemed absurd that the State should be asked to sell renewable leases, thus abandoning to the tenants its share of the prospective values, and at the same time to spend its money in providing additional renewable leases at other points. The announcement that the endowment lands would not be sold was quite satisfactory. The Liberals would be heartily glad to know that Mr MasBey and his colleagues had abandoned their old views on this subject. " With regard to the Treasurer's proposals for loan consolidation," added Sir Joseph, I think that it is desirable to provide for the renewing of . the short-dated debentures. It is known that I contemplated the same tHing. The conditions of the loan market at the time the short-dated debentures were issued justified their floatation, since long-dated loans would only have been raised on disadvantageous terms. The position from the point of view of the Treasurer in regard to the loans falling due during the next few years seems to be generally satisfactory. A large part of the money is due in New Zealand and in Australia, and experience has shown that these local loans are comparatively easy to arrange.

A PERFECTLY SAFE BUDGET. WITH POINTS OF INTERROGATION. SOME MUCH-NEEDED REFORMS. POPULAR AND BETTER PAID UPPER HOUSE. DANGERS IN THE ARBITRATION PROPOSALS. THE HON J. T. PAUL'S OPINIONS. [From Our Cohbesfondent.] WELLINGTON, August 8. " The Budget is perfectly safe, even for the man who will be called on to pay an increased graduated tax," said the Hon J. T. Paul, one of the ablest thinkers in tho Legislative Council, in discussing it with a representative of the " Lyttelton Times." "I believe," he said, " it will accelerate the cutting up of estates, but in my opinion that graduation will heed to be considerably higher to give the thousands of intending settlers an opportunity of going on the land. " The main points of interest to tho people, in my opinion, are the reform of the Legislative Council- and the portion which deals with industrial questions- With regard to the Council, I am wholly in favour of a radical change in its constitution, therefore I am in favour of the elective principle as against the nominative. I have one serious misgiving, however. I am led to understand that the Government is unwilling to increase the honorarium from the £>resent amount. Under no consideration will the elective Legislative Council be satisfactory unless it is truly representative of all classes of the community. Taking into consideration election expenses and the fact that most members are compelled to keep two houses going for a large part of the year it cannot be said that a salary of £2OO is in any way adequate for the position. I am Btrongly in favour of the election being on the proportional representation system. That will give representation in the Council to ail classes of the community. t An Elective Legislative Council with a salary of £2OO per year will resolre itself largely into a preserve for the rich man. As a son of the people a Council of that description would meet with my unqualified hostility. The machinery much be such as not to penaliso the direct representatives of the workers of this country. I am not complaining about the proposed large constituencies because the principal of proportional representation and its practical working will not unduly penalise tho poor man. " The direct proposal in the Budget relating to the Arbitration Court is of very wide interest to all sections of the community," continued Mr Paul " Those who are not directly concerned with the question of wages aro indirectly concerned in the continuance of industrial peace. .Now if wo take the proposal in the Budget which provides for a, reconstituted Arlitui-

tion Court with a Supreme Court Judge as chairman, and experts appointed from the ranks of tho industry under review, we aes at a glanco that the permanent element is wholly dispensed with. I think that is dangerous. Take a concrete example. Many industries come before the Arbitration Court for review where a small number of men are practically engaged in the industry. Comparatively -tew working men would bo able to do justice to a position where they had to sit with a judge of the Supreme Court and consider and agree to questions relating directly to the wages and conditions of the industry. Tiiey would not for the greater part be able to do'justice either so far as it affected themselves or their fellow-workers. The responsibility is tremendous. The lai'ge majority of the workers have had _ no training to fit them for such a position. The large majority of workers have not a quick or adequate knowledge of the relative value of clauses in an award. Saying this, lin no way undervalue the ability of the probable experts. 1 simply say that they have not had the training, and are therefore placed at a great disadvantage in comparison with the average employer who will sit as the expert for his side in connection with the employers' side ox the case. It seems to mo that in some very probable cases the employer, sittings as the 6ole representative of employers' interests, might easily find it profitable to agree to some provision in an award compromising tho interests of the average employer but which would suit his personal interests. The proposed sole expert of the employers' and workers' interests is not an adequate protection for either. I am not against the experts sitting in Court. They bring to the consideration of questions a knowledge which is indispensable, but so do permanent representatives of'employers and workers. Their experience teaches them to see at a glance tho effect of clauses in an award. They are fully qualified to protect' the general interests of employers and workers. f They are not likely to agree to provisions which prejudice or hurt either side. They know exactly what a clause means when agreeing to it. The experts do not, for the reason that they have not had the experience of tho permanent members on the Court. I, therefore, think that tho Government proposal should ho extended to include a permanent representative of employers and workers in addition to tho experts. That means the Court would consist of a Supreme Court Judge, a permanent employers' and workers' representative, and an expert employer and worker from the industry under review.

" It is impossible to cover all the points in the Budget, and there are several good ones in it. It shows in large part the direction in which the new Government is going. After mature consideration the relative value of the proposals can he properly estimated." "DUFFED OUR CLOTHES." " After reading tho Budget through, it would appear to one that they have just in one stroke duffed our clothes." was Sir James Carroll's comment on the Reform Government's Budget. " They may not fit them well," he added, " but by slight amendments here and there they may improvo the seams and put a patch or two on and vary the colour by dyeing. I think that is all I need say just now. Another time I might show how utterly impossible some, of their proposals are."