THE FINANCIAL DEBATE.

Wairarapa Daily Times, Volume XXVI, Issue 7216, 25 July 1902, Page 4

THE FINANCIAL DEBATE.

Speech by the Member for

Masterton.

Womakotho following extracts from the speech delivered by Mr A. W. Hogg, member for Mastertori, in tho courso of tho financial Dcbato:—l hitvo been reminded of a speech which I made some time ago to my constituents. I must, say that if I had possessed the prophetic powers Willi which sonic members seemed to be endowed, it is probable that I would have ttikon a slightly different view of tho position. I acknowledge that it is a dangerous thing to go down a steep incline without tho brake, but I am afraid that I exaggerated tho danger on that occasion. Jiccauso what do wo find? At that time tho markets were depressed, the price of wool had gone down, the value of our exports had been on tho decline, our imports were increasing at an amazing rate, and I thought the proper time had come when a warning note should be sounded. The Government, I grieve to say, came in for a share of the criticism, as they always do at my hands if I think there is a necessity for it. I found the departmental expenditure had been growing and swelling liko cabbages in a Chinaman's garden, and I still think there is reasonable ground for a moderate retrenchment in somo of our Departments, and especially in tho Defence Department. I would probably have spoken iv different terms if Iliad realised thai, notwithstanding the incline, I. perceived in front of me tho rovenuo of the colony was likely to improve in the way in which it lias done. We have before us clciuly demonstrated tho fact that last year 'the consolidated revenue of New Zealand amounted to no less than .(.'0,0f)!j,070, or an increase in tho short peiiod of six years, 185)0, of, in round figures, a miilion and a-half sterling. In view of tho prosperous condition of the finances of the country, I think few members' .will venture to say we are not warranted in pursuing a vigorous policy. 1 would like at any time that the Government should, do what they can to judiciouly regulate- and restrict the expenditure m directions where it can be curtailed without in any way injuring the prospects of Nii\v Zealand, but 1 have never for a moment contended that tho mony expended on roads and bridges and useful public works—such as railways that arc likely to be of immediate value to the coimlrj , —- was by any means excessive. On the contrary, I think it is very much to bo regretted that a large saving cannot be eii'ectcd from the expenditure out of the consolidated revenue, iv order that it may bo applied to useful works upon which the prosperity of the colony so very much depends. 1 think there arc very few country members in the House who would not be pleased to find the Colonial Treasurer, instead of handing over a matter of iM;il),(X)0 for roads and bridges, iv a position to double that amount. I am satisfied it would be like seed thrown upon a fruitful soil, for it would produce a wonderful fine harvest. Sir, much as I deprecate large borrowing, greatly as 1 deprecate what is called " a self-reliant policy," I agree with the honourable member who has just been denouncing this .Hill in tho opinion lie has expressed that for public works borrowing is not only excusable but necessary. With a country like this, with the amount of prosperity we enjoy, and the large work of development that awaits the energy and enterprise of the people I believe if, from year to year, we steadily borrowed something like n million of money, tho strain would bo none too heavy. The intermittent and spasmodic system indulged in some fifteen or twenty years ago of borrowing five millions one year and waiting a number of years again till the colony was nearly starved to death before another loan was raised, was ill-advised and productive of serious embarrassments. JJut the system that lias been initiated by the present Government of borrowing from year to year to a reasonable extent for public works, is one that I am satisfied so far from injuring New Zealand must stimulate it, and help to build it up and make it a great nation. Sir, tho question arises under the existing circumstances, Is the colony warranted in raising this loan ? Should we give effect to it ? I admit that the amount is somewhat heavy, nearly two millions of money in one year. It seems a largo amount of money to borrow. Considering the colony's indebtedness, and the heavy drain upon the taxpayers for interest, I regret that the occasion should demand it; but I do not think it comes with exceeding good judgment from honourable members who arc much interested in the prosecution of one of the largest railway works in the North Island that they should deprecate the assistance that is proposed to be given to our Public Works Fund. If I the Government arc required within a reasonable time to complete tho trunk lines of the colony—and these lines will not bo fairly profitable, 1 believe, until they are completed—it is necessary and essential as well as important that we should face the music, and, perhaps, borrow a little in excess of what wo might do under 6rdinary circumstances. The position in wbicJ? we arc placed is this : We have a trunk railway awaiting completion in the North Island ; a railway from Picton to Bluff awaiting completion in the South Island, and the question is whether both of these lines .should not bo completed within a reasonable time. Ido not think that it would be an injudicious policy to almost suspend all other railway works in Now Zealand until these main trunk lines are completed. I nni perfectly convinced of one thing, that we arc not likely to have true prosperity in certain parts of the North Island until its trunk line is completed. Every penny, every shilling that will bo expended on that work is likely to yield an exceedingly good return. No one who has travelled of late between New Plymouth and Onehunga can close his eyes to the fact that there

is a payable traffic awaiting the completion of this trunk railway. The amount of traffic between these ports is E- very considerable, and growing rapidly. Then, again, there is a splendid forest to be opened up—tho Waimariiio forest, which is undoubtedly the -finest and richest, and most valuable piece of bush country that remains to be opened up in New Zealand. One argument brought forward from time to time against anything like a large public-works expenditure is, thatit would be likely to bring labour from other places, and as soon as the money had boon expended the labourers would drift into the ranks of the unemployed, ami become an encumbrance instead of a help. But, Sir, if wo borrow to a reasonable extent in order to have these railways speedily completed, allowing that wo augment our labour staff, and extend the co-operative system which the honourable member for Franklin so severely deprecates; we need not be apprehensive as to what the consequences will be. Explorers who have passed through that magniiicient stretch of bush between Taihape and Ongaruho following up the courso of the Wanganui River, arc aware that this huge forest of • totara, matai, and mairo contains some , of the finest 'timber that lias been disa covered in any part of tho world, let alone New Zealand, Anyone who has i travelled through that forest must have , felt convinced that there is an immense mine of wealth there-a huge arena of r .' employment that will absorb all the t labour that is likely to pour into New Zealand for many years to come. The completion of the North Island Trunk Railway is absolutely necessary if we are going to make thai part of tho North I Islaand truly prosperous. I repeat that it is extremely desirable that we should complete tho main trunk line of the North Island. An Hon. Member.—When'? Mr Hogg. -That is the question. It depends upon whether we have the pluck and enterprise to borrow a little more than usual in order to do it. If that is not done the line is not likely to be completed for many years. Now, we have members all over tho House loading the Order Paper from day to day with questions regarding railways and works of various kinds. Two-thirds of these questions involve the expenditure of money: members are crying " give ! give ! give! "; asking, " are you going to buy up land for settlement"? Who'll arc you going to make our bridges'? When will you build our railway stations ? When are you going to erect our post offices ? " There is a general demand by members throughout the House—an untiring and unceasing cry 5 to the Government for money—menus - to carry out public works. Yet somo of the claimants declare that in this country ~i we are going in for a wasteful and ex- J travagent system of doing work, and ono that will lead us into bankruptcy. lam glad to say as tho results of my observation, inquiries and investigations, that we have in the country the railway is P about to penetrate—there is now, I suppose, only fifty miles of railway to be completed—tho soil, tho climate, the timber, in short, all the material to pro- Tl ducc one of tho finest labour fields that m has ever been developed in tho Southern ' j 0 Hemisphere. There is not tho least

doubt that a more magnilicient labour field could hardly be conceived. In a short timo when tho iron horso has found its way up there, you will find the sawmillers following along the line, and tho cost of tho railway will be recouped again and again to tho Stato by the sale of tho timber, and after the timber ia removed a largo profit will bo made out of the soil. Thcro aro lots of enterprising individuals who havo spied out that country and that forest, who would bo only too glad to purchaso seditions ot tho present time; not that they want the land, but they want to securo tho timber. Of course tho timber is ono thing that ought to be, and no doubt will be, conserved for tho benefit of the New Zealand tnxpaycr. It is one mine of wealth that should repay every shilling that is. laid out in completing this line. An Hon. Member. —More than pay.

Mr Hogg.—Yes; I bclicvo it will more than pay. It is worth two or three millions of nfemoy. And it is not simply the amount of money the timber is worth, but you lrnvo to look fit tho splendid fund that it is going to create. You have to consider tho largo number of workmen that aro going to bo employed there, and that will bo permanently located there ; becauso on that soil, I believe, about four-fifths of the sawmill hands will make their homes, and you will have prosperous families and liiio littlo townships and the kind of civilisation that so much is needed in tho part of the North represented by the \ honourable member for Franklin. If thero aro honourable members who should especially support a Jiill of this character it is tiic members representing tho northern part of tho colony. It is not alone tho prosperity the works lire going to bring to Wellington, but the prosperity Unit is going to be lavished on Auckland and the North Island generally that ought to bo considered in connection with a Loan Jjill of this character. And, after all, what is tho amount asked ? One million and threequarters. If the money is required to be expended on railway and road-construc-tion, we have a right to trust the Colonial Treasurer and the Minister for Public Works to see that that money is expended in the right direction. So far from being an objection, I think it is all the better that there should bo a certain amount of freedom allowed to the Minister for Public "Works in deciding where the money is to bo expended. I believe I can put sufficient coniidence in him for that, and I believe members of the House share that confidence. All I hope is that he will see that a largo share of tho money is expended on tho completion of the line I have referred to. I do think it is a judicious thing for the Government to make roads and bridges to enhance the value of private property ami cspecialy large estates, that in the course of a fuw years will be bought by the State. We shall then bo be buying back our own improvements. Can it bo considered reasonable or just to pick the pocket of the whole community for the benefit of a few private owners '? Willi regard to the now settlers, especially the Crown tenants, the men who arc facing the forest and opening up new country, the Government is justified in doing a great deal more for them than it has been doing of late. I can speak feelingly, for 1 have been in the back blocks, and I know what the settlers there have to endure, and what they have suffered owing to want, not only of metalled roads, but of good summer roads. If there is any class of community that deserve the full benefit of tho Public Works Fund more than another it is those enterprising settle who, with their wives and families, have been lighting the forest and c.irving out homes for themselves there. I trust the Government will do their duty to these pioneers. A considerable amount of the .(.'(300,000 or .£-JOO,OOO that is being annually expended now is going to to improve what ? Old stations and estates that were acquired many years ago, and the individuals who own them have never thought of making decent roads or bridges, because they did not want population. Mere tracks were quite sufficient for them ; but, now that there is a probability of the Government buying these blocks and a process of ro-scttlmicnt is going on, they want to get all the public expenditure they possibly can. There is a clangor that some of the unsophisticated gentlemen who represent country districts will do their level best to get large votes for astute political converts, who are exclaiming: "Though we were Conservatives onco we are Liberals now, and we will help you at the election." We are told that the Conservatives have altogether altered their opinions, and have become very kind to us of late, and are actually applauding us. But why ? Because we have been raising the value of their properties by expenditure of borrowed money. 1 hope the Government will investigate those votes carefully, and see- that when moneys arc expended they are expended whore they are most likely to yield a good return for the benefit of the Crown tenants and those who aro now struggling bravely to identify themselves with the best interest of the country. It is young settlers, men and women, without a great deal of money, but endowed with sufficient daring and pluck to face the drawbacks of life in tho bush—it is these settlers that require particularly at tho present time the assistance of the public purse, I trust the Government will sec when they aro constructing new roads and bridges that they do not turn their backs on their own tenants, who are doing far more to upraise the country and improve the present state of the colony than almost any other class of the community. I