APPENDIX II. The Compact
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APPENDIX II
The Compact
Resolutions 1 and Appropriation Act 2 to spread Financial Burdens among the Provinces
The resolutions were then reported to the House, as follows:
"1. That it is expedient, without delay, to make provision for all ascertained outstanding liabilities, and permanently to adjust the public burdens of the colony, which adjustment ought to embrace a settlement of the New Zealand Company's debt, and the charge on the Land Fund for the purchase of Native lands.
"2. That, as part of such arrangement, it is necessary to make provision by loan for sums absolutely required for Native land purchases for the ensuing financial year, and to make permanent provision for the same object.
"3. That amongst the liabilities to be provided for by the colony this House recognizes the following: Balance due to the Union Bank of Australia; deposit accounts; arrears of fourths due to the New Zealand Company; balances due to provinces; outstanding liabilities on contracts for purchase of Native lands.
"4. That, as a provisional arrangement for satisfying immediate liabilities, providing for the purchase of Native lands, and for general services, it is desirable to raise upon debentures a loan not exceeding £100,000, at interest not exceeding 10 per cent., payable off, at the option of the colony, in one or two years: any portion of such loan which, in excess of the amount required to complete existing contracts shall be expended in the purchase of Native lands, to be repaid with interest out of the permanent loan of £180,000 to be provided for effecting such purchases.
"5. That it is expedient, as part of a general and permanent arrangement, to redeem the New Zealand Company's charge on the Land Fund upon the terms offered by the Company and assented to by the Imperial Government--namely, that payment be made to them on the 5th April,
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FINANCIAL RESOLUTIONS
1857, of a sum of £200,000, towards which all moneys in their hands at that date in excess of the interest shall be applicable by way of reduction, the Imperial Government guaranteeing a loan for that object of £200,000 to be obtained in England upon the most favourable terms practicable.
"6. That, as further part of such general and permanent arrangement, it is expedient to exonerate the Land Fund from its liability for the purchase of Native lands, and to provide a capital fund for carrying on such purchases; with which object it is expedient to borrow a sum of £180,000 to form such capital fund, such sum to be raised and made available as circumstances may require, in such manner, and subject to such conditions as to the application thereof, as the Legislature may direct; and that it is expedient to make application to the Imperial Government for a guarantee for a loan for such purpose of £180,000, to be raised in England upon the most favourable terms practicable.
"7. That, as further part of such general and permanent arrangement, in order to pay off the before-mentioned provisional loan and the old debentures, but exclusive of land scrip, it is expedient to make application to the Imperial Government for its guarantee for a further loan, to be raised in England upon the most favourable terms practicable.
"8. That the aggregate of such loans ought not to exceed £500,000, and that such loans should be secured on the general and territorial revenue of the colony.
"9. That the ground on which this House conceives itself entitled to claim the guarantee of the Imperial Government for the required loans is, that burdens have been imposed on this colony by the Imperial Parliament unjust in themselves, and greatly disproportioned to its revenue, and which, without such aid, must prove deeply injurious to its progress and prosperity.
"10. That, as further part of such general and permanent arrangement, and in order to adjust equitably the public burdens, the New Zealand Company's debt be borne by the provinces of the Middle Island in equal proportions, and the charge of purchasing Native lands by the provinces respectively within which such purchases shall be made.
"11. That, in accordance with a former resolution of this House, the Province of Auckland be relieved retrospectively, as well as prospectively, from the New Zealand Company's debt, and that, after payment of the sum due to the Company on the 5th April, 1857, the balance of the loan of £200,000 be made applicable to that purpose, leaving any deficiency or excess to be adjusted when the same be ascertained, the Province of Auckland on its part bearing the sum of £911 8s. 9d. under the Land Claimants Ordinance, New Ulster, as a debt incurred for its exclusive advantage.
"12. That this House is of opinion that the administration of the waste lands of each province should be transferred to the Provincial Government
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of such province, and the land revenue thereof made provincial revenue, subject to the following charges: The Province of Nelson to be subject to a charge of £66,666 13s. 4d., to bear interest at the rate of 4 per cent., with a sinking fund of 2 per cent.; the Province of Canterbury to be subject to a charge of £66,666 13s. 4d., to bear interest at the like rate, with a sinking fund at the like rate; the Province of Otago to be subject to a charge of £66,666 13s. 4d., to bear interest at the like rate, with a sinking fund at the like rate; the respective Provinces of Auckland and Wellington to be subject respectively to charges equal to the proportion of the permanent loan borrowed for the purchase of Native lands in such provinces respectively, with interest at the rate of 4 per cent, per annun, and a sinking fund of 2 per cent.; the Province of New Plymouth to be subject to a charge equal to the proportion of permanent loan borrowed for the purchase of Native lands in such province, with interest at the like rate, and with the like sinking fund, but after allowing the sum of £20,000 as a first outlay to be made in that province in the purchase of Native lands, without charge to such province.
"13. That, until such outlay of £20,000 shall have been made in the Province of New Plymouth as aforesaid, the colony do guarantee, out of its general revenue, to make up any deficiency in the gross proceeds of land sales within such province, so that the sum derivable from such gross proceeds be not less that £2,200 in any one year.
"14. That the loan to be obtained for fresh purchases of Native lands be distributed in the following proportions: Five-tenths to the Province of Auckland, £90,000; three-tenths to the Province of Wellington, £54,000; two-tenths to the Province of New Plymouth--without interest £20,000, with interest £16,000: total, £180,000.
"15. That the scheme of arrangement and adjustment embodied in the foregoing resolutions be brought into operation on and from the 1st day of July, 1856, and the revenue of the colony distributed and appropriated on that basis on and from that day: the contributions from the Land Fund to the New Zealand Company's debt ceasing on and from that day, and the purchase of Native lands being thenceforth provided for out of the before-mentioned loans.
"16. That such scheme of arrangement and adjustment be effectuated by an Act of the Imperial Parliament, to be applied for forthwith, and that an appeal be made to the Home Government for its guarantee for an aggregate loan of £500,000.
"17. That, failing such Act of Parliament and guarantee, the entire scheme be open to revision by the General Assembly; and that this House guarantees to the provinces all moneys which may be received by them under the foregoing arrangement, without liability to future account.
"18. That application be made to Parliament forthwith for effecting the before-mentioned objects."
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FINANCIAL RESOLUTIONS 341
The House divided on the question, "That the foregoing resolutions be adopted."
AYES, 19.
Brittin
Greenwood
Taylor
Campbell
Hall
Travers
Carleton
Lee
Wells
Cuff
Ludlam
Williamson.
Curtis
Merriman
Domett
Sewell
East
Stafford
Teller.
Richmond
NOES, 10.
Cargill, J.
Fitzherbert
Smith.
Cargill, W.
Fox
Daldy
Henderson
Macandrew
Ward.
Teller.
Featherston
Majority for, 9.
Motion agreed to.
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