Part 7 (1/2)

Mr. Kidston then became Premier. On the 11th of April, 1907, the a.s.sembly's term having almost expired by effluxion of time, a dissolution took place, and a general election followed. The two chief objects for which the coalition between Liberals and Labour members had been brought about in 1903--sound financial administration and electoral reform--having been secured, disintegration had commenced to set in in the Government ranks. On the one hand some of the Liberals were desirous of reunion with their former a.s.sociates led by Mr.

Philp, and on the other the more extreme section of the Labour party adopted a socialistic platform, thereby causing their more moderate colleagues who followed Mr. Kidston to break with them before the election. The respective manifestoes of the Premier and the leader of the Opposition, issued some weeks before the dissolution, were found to embody practically the same policy in so far as vital measures of legislation were concerned. Both emphasised the necessity of having in office a Ministry possessing the steadfast support of a united following if full effect were to be given to their programme. The result was disappointing, for when the new House met in July the Philp party numbered 29, the Government party 25, and the Labour party 18. After a fight over the choice of the Speaker and Chairman of Committees, the Labour members gave a general support to the Government, but comparatively little progress could be made in consequence of the uncertainty of that support. The Legislative Council rejected several measures which both the Government and the Labour party were very anxious to see placed on the Statute-book. With a view to taking concerted action to overcome the veto of the Council on democratic legislation, Mr. Kidston made overtures to the Labour party for an offensive and defensive alliance in Parliament and at the polls. The Labour party replied that they were unable to give any a.s.surance on the subject. Mr. Kidston then advised His Excellency, Lord Chelmsford, to recognise the principle that there resided in the Crown the power to nominate to the Legislative Council such a number of new members as might be required to overcome obstruction, and that the power should be exercised if, in the opinion of His Excellency's responsible advisers, such a course became necessary. The Governor declined to accept this advice, and the Premier resigned on 12th November.

[Ill.u.s.tration: ROCKHAMPTON 1. Quay Street, from the North Side.

2. Custom House, Quay Street. 3. East Street.]

Mr. Philp, being sent for by His Excellency, formed a Ministry, which was at once met in the a.s.sembly by successive votes of want of confidence, the members of the Labour party uniting with the late Ministerialists in the divisions. A dissolution was granted, even though the House refused to vote Supply to the Government, and early in the new year (1908) a general election took place, Mr. Philp losing four seats, the Labour party gaining that number, while the Kidston party were again returned with the same following. The effect was that the Philp and Kidston parties each numbered 25 and the Labour members 22. As the two latter parties had in most cases a.s.sisted one another at the elections, the Philp Government resigned, and Mr. Kidston being recalled found his position practically unchanged, so far as relative numbers were concerned, and yet greatly strengthened as regards the const.i.tutional reform he desired to effect. A short session was at once held. A reform of the Const.i.tution limiting the vetoing power of the Legislative Council by providing for a referendum on any measure which the Council rejected twice, and also a number of democratic measures rejected by the Council in the two preceding sessions, were pa.s.sed with the aid of the Labour party. When, however, the Government turned to legislation affecting the material progress of the State, and introduced two bills to authorise the construction of railways to mineral fields (to Mount Elliott in the Cloncurry copper area and to Lawn Hills in the Gulf district) on agreements made with two private companies who undertook to provide in one case one-half and in the other case three-fourths of the capital required, despite the fact that the railways were to be constructed, worked, and managed by the Railway Commissioner, that the companies were to receive no interest on the money they advanced until the railways earned it, and that when at the end of fifteen years the Government repaid the advance the companies were only to receive a sum equal to what their investment was then earning capitalised at 3 per cent., the bills were obstructed by the Labour party, and were only pa.s.sed with the a.s.sistance of the Philp party, under the closure, the Estimates being forced through by the same means at the close of the session. Before leaving on a mission to England, Mr. Kidston publicly intimated that he could no longer work with the Labour party. He returned in October, and the Philp party, recognising the mischievous futility of three-party government, agreed to accept the programme enunciated by Mr. Kidston at the election in 1907, and to join the Ministerial party, the Premier being granted a free hand, both by his colleagues and followers, in reconstructing the Government.

The fusion of the two parties led to the immediate resignation of two Ministers and the formation of an Independent Opposition by these gentlemen and four more seceders from the Kidston party. A reconstruction of the Cabinet followed, three members of the Philp party taking office under Mr. Kidston. Mr. Philp declined to accept a portfolio, but undertook to give the new Government support as an unofficial member of the a.s.sembly, an undertaking most loyally observed. Dissatisfaction was naturally felt by several members at the composition of the Cabinet, and when Parliament met on 17th November it was evident that the fusion had not had the desired effect of reducing the number of parties to two. On the Opposition side of the Chamber were the Labour party in direct opposition and the Independent Opposition of six sitting on the cross-benches, while on the Government back cross-benches were three or four members who joined forces with the Opposition in every division. The cohesive majority was still large enough to enable the Government to pa.s.s several railways, two or three bills, and the Estimates; but, unfortunately, it was found necessary to have recourse again to the closure to get the Estimates through the House before Christmas.

Further defections took place during the recess. The sudden death of the Speaker, Mr. John Leahy, and the election for Bulloo of a Labour member in his stead, reduced the Government majority to two. Such a condition of affairs rendered it impossible for any party in the House to carry on public business. A trial of strength took place over the election of a Speaker when the House met on 29th June, the Government having a majority of two. Two days later Mr. Bowman, the leader of the Labour party, moved a want of confidence amendment on the Address in Reply. A very protracted and acrimonious debate took place, and the motion was only defeated by a majority of one in a full House.

Arrangements had been made earlier in the year for the holding of a conference of Commonwealth and State Premiers and Treasurers with a view to making a final effort to arrive at a mutual understanding regarding the financial relations of the Commonwealth and the States after the expiry of the ten-year period provided for by section 87 of the Commonwealth Const.i.tution. As it was considered highly important that Queensland should be represented at this Conference, which was to be held in mid-August, the Government secured an adjournment for a fortnight, but only by applying the closure.

The Conference came to a unanimous agreement with regard to the future division of the surplus Customs and Excise revenue, justifying the determination of the Government of this State to be represented. But the efforts of the Opposition to defeat the proposal of the Government to adjourn furnished additional evidence, if any were needed, that no business could be done in a House so evenly divided. When the Premier returned from the Conference, which had been held in Melbourne, after consultation with his party, he advised the Lieutenant-Governor to dissolve the a.s.sembly, provided it agreed to grant temporary Supply.

His Excellency accepted Mr. Kidston's advice, but stipulated that the Supply must be for the shortest time in which it was possible to hold an election and summon the new Parliament. After another fight, the Government closured through an Appropriation Bill covering Supply for ten weeks, and the House was dissolved on 31st August, the election being fixed for 2nd October.

The result of the appeal to the country has been to bring about a practical restoration of two-party government, an ideal for which the Ministerialists have been striving ever since the session of 1906.

The Government have won 41 seats and the Labour party 27, while the Independent Opposition, which went out 12 strong, have been reduced to 4. The Government have thus a majority of ten over the combined Opposition parties, and should be able to carry to a successful issue their policy of railway construction, immigration, and land settlement, and to steer the State through the temporary difficulties arising from the pending rearrangement of the financial relations between the Commonwealth and the component States.

It may be of interest to add that the last was the seventeenth Parliament of Queensland, which gives to each an average of about three years, the present maximum statutory term of the Legislative a.s.sembly. The explanation is, of course, that in the earlier years of the colony the limit of the a.s.sembly life-term was five years.

As already stated, the Legislative Council when first const.i.tuted comprised 15 members. Since then the number has been periodically increased to correspond with the enlargement of the other Chamber. The present number of members of the Council is 44. Until 1865 the number of members of the a.s.sembly was 26; thence till 1873 it was 32; thence till 1875 it was 42, increased in 1875 by the creation of the electorate of Cook to 43, at which number it remained until 1879, when there were 55 members. In 1886 the number was increased to 59, and in 1887 to 72, at which it still remains. Payment of members of the a.s.sembly was first sanctioned in 1886 by an allowance of two guineas a day for attendance, and 1s. 6d. a mile for travelling expenses, the total in any one year for attendance not to exceed 200. In 1889 the payment was fixed at 300 a year, with a mileage allowance for one journey to and fro each session, unless where an adjournment exceeded thirty days, when mileage was again payable. In 1892 the salary was reduced to 150 a year. In 1896 it was again raised to 300, at which amount it still remains. The members of the Legislative Council receive no payment.

In the foregoing sketch of the Legislature of Queensland many omissions will probably be detected by the careful reader. But as a rule mention of the names of public men has had to be confined to Premiers and such other Ministers or members to whom for some usually apparent reason it is necessary to give prominence. Had s.p.a.ce permitted, many interesting character sketches of prominent men of the past, as well as of the present, might have been written; and it must not be forgotten that some of the services most worth recording have been rendered by men whose names have not become household words, and whose reward has been found in the lifelong consciousness that they have un.o.btrusively done their duty to the State. Enough has probably been said to prove that responsible government in Queensland, initiated among a mere handful of people fifty years ago, and carried on amidst discouraging difficulties until to-day, has been attended by results of which no patriotic subject of the King need feel ashamed.

[Footnote a: An interesting incident occurred at the opening of the second session. The Speaker announced the receipt of a writ of election endorsing the return of the Right Honourable John Bright as member for Kennedy. As Mr. Bright had not been present during the preceding session--which had only lasted from 26th April till 4th May--the seat was declared vacant.

This was not the first instance of an Australian const.i.tuency voluntarily disfranchising itself by electing a prominent British statesman by way of protest against some real or fancied injustice.]

[Ill.u.s.tration: TOWNSVILLE: FLINDERS STREET, LOOKING WEST]

CHAPTER II.

PUBLIC FINANCE (1859-1884).

Importance of Sound Finance.--A Great Colony Starts upon a Bank Overdraft.--First Year's Revenue.--Land Sales as Revenue.--Deficits in First Decade.--Transfer of Loan Moneys to Revenue to Balance Accounts.--Heavy Public Works Expenditure.--Crisis of 1866.--Inconvertible Paper Currency Proposals.--Flotation of Treasury Bills.--Higher Customs Duties.--Wiping Out a Deficit by Issue of Debentures.

--Transfer of Surplus to Surplus Revenue Account to Recoup Loan Fund.--Incidental Protection.--Railway Land Reserves.

--Proceeds Used as Ordinary Revenue.--Three-million Loan.

--Condition of Affairs at Close of First Quarter-Century.

--Phenomenal Progress; Prospects Bright.

Sound finance is the sheet anchor of any Government, whether despotic or democratic. Without a prudent guiding hand at the Treasury the s.h.i.+p of State might as well be rudderless. In the fifty years of Queensland history financial mistakes have been made, from which much public loss as well as individual suffering has resulted. If those mistakes, or some of them, are laid bare in this book, the object is not to reflect upon Governments or individual Ministers, but to treasure the lessons thus taught for future use.

Queensland began its career with a bank overdraft, for with ”7d.

in the Treasury” on the date of the Queen's proclamation of the colony it was necessary to provide funds in antic.i.p.ation of revenue collections. But at the outset borrowing was indulged in on a modest scale. For 1860 the revenue was 178,589, and the deficit only 1,514.

For the second year there was a revenue surplus of 2,442 over the expenditure of 235,796. But there had been during the period an outlay of 63,210 on loan account. Besides this, of the total revenue for the two-year period--including the twenty-one days of 1859--the cash receipts from land sales, which strict political economists hold to be capital, were 114,803, equal to 27 per cent. of the total revenue. It may be a.s.sumed that the loan expenditure was entirely for permanent or reproductive works; but only 73 per cent. of the money spent for the service of the year was strictly revenue, the remainder arising from land sales. Yet as New South Wales practice had lent sanction to the use of land sales receipts as revenue, the Treasurer (Mr. R. R. Mackenzie) may be admitted to have managed well, since at the outset the estimates of revenue and expenditure were both wholly conjectural. Mr. Mackenzie's successors were less fortunate; for during the first decade, although the annual revenue had quadrupled, there were only two years with surpluses.

There was another scarcely defensible transaction during the first ten years' term. In 1864 the Treasurer, finding he would otherwise have a relatively heavy deficit, balanced his budget by transferring from Loan Fund to Revenue the total expenditure incurred upon immigration since the foundation of the colony. In that year the loan outlay was 401,421, including the transfer to revenue, an increase of 337,950 in a single year. Thus the loan expenditure was at the rate of about 5 10s. per head of the population as ascertained by the census of the year. The deficit of 1864 seems less excusable because the revenue had increased by over 25 per cent. for the year. The incident ill.u.s.trates the danger of suddenly increasing loan expenditure, which produces industrial and commercial activity, but at once adds to the cost of public administration in various ways. Loan money spent on the same scale per capita in Queensland to-day as in 1864 would mean a total sum of about 3,000,000 a year, whereas, even with the numerous railways lately started, the loan disburs.e.m.e.nts for 1908-9 did not quite reach 1 millions. Another consideration is that up to 1865 none of the loan works had become reproductive, and the 21 miles of railway then open for traffic did not earn working expenses. Further, the Government had been borrowing at 6 per cent. interest, which meant that the 1 millions of loan indebtedness at the end of 1865 imposed a burden upon the taxpayers of about 75,000 a year, or not far from 1 per head of the population.