~nv 21- .1931

Zllegeci Covernm

ent Surplus .

'I‘lii-‘. (t||A_R_i.<r|'ri:'r<lwN (IIIARDIAN

fihown .To Be Concoted For gPurely_I_’_oli.."cal Purposes

Lea Government's Misleading Statements In Public Accounts, Its Inacticn In Agricultural Department, Extravagance In Public Works And Non-Enforce- ment Of Prohibition Law Are Scored By Mr. A. F.

I Arsenault In The Budget Debate.

speaking in the Budget debate in we Proylngigl Iogisleture on April g1, Mr. A. F. Arsenault, Third Dis- trict as prince, congratulated the speaker (Hon. Mr. Stewart) 1190i! the honour tendered to him in his appointment, and expressed the be- yief that he would discharge his duties with credit to himself and to the House. Mr. Arsenault continued:

1 also wish to join with the other members in extending to the hon. member from Egmont Bil’ my 51h‘. w-e sympathy in the great loss he has sustained. I am sorry t0 BB0 the former Speaker (Him- Mr- M0- Doneid) i; still absent through ill- ness, but hope that he will soon be restored to his wanted health.

I have listened with a. great deal o1 interest to the senior member from Summerside (Hon. Dr- M80" Neill). He attempted i» "roe-iii" the senior member from Charlottetown (Dr. MacMillan) and I am afraid they, he displayed some animosity m- e long-felt revenge in his heart ior what the Doctor said about him test yehr-

It seems, Mr. Speaker, that our Liberal friends have spent most of their time so far in this debate in gbuslng the Conservative press. They have not succeeded in de- (ending the actions of theirGovern- merit. They are on the defensive this year, as in former years, and it is up a; them to convince not only the Patriot but the people of this Province that they have discharg- ed their duties, that they have car- rled out their promises made to the electors in 1927. The senior member from Summerslde went out of his way to talk about kangaroos and such animals. I would not care to say aloud the thoughts that were present in my mind duriflE his speech; ‘but might 1 be permitted. to give him the advice he has given to others; namely, that he get his tonsils examined. (1-81181115019-

SELF STYLED BEFORMERS

It is the duty of the opposition to review the acts oi this adminis- tration from the time they assum- ed oiiice in 1027. It might be well to paint for you, m. Speaker, a. picture of these gentlemen as they appeared to the people of this Pro- vince when they entered that cam- paign. We recall that before the formulation ’ of their platform they held caucus meetings and 00' tempted to agree on a certain plat- form. They thought seriously 01' adopting Government Control, lizhii wines and beer, or Prohibition, and finally the Hon. Mr. Saunders, sit- ting on the fence with all these armaments before him and tryim! i" that position to keep his ear to the ground, formulated a platform, and in that ridiculous physical position he evolved his campaign. Written pledges were asked of his candi- dates, and the senior member from Summersid lained that had people known in his District that he had signed this pledge they would not look at him at.the next election. Such a regulation was made that men ofiering for election on behalf of the Liberal party had to pledge themselves as dictated to them by the Temperance Alliance.

We see now what happened. The old politicians who had been in this Chamber for years, were cast aside. We see no more of those flsures that had for years supported the Liberal party; but we ilnd ourselves in the midst of men, a large major- li-y 0f whom are in tho political field for the first time; men who were obscure, or at least who were not known by their constituents to have taken a drink. They arrived With prayer beads and Bibles to leach the rest of us how to behave. These gentlemen, during the cem- btliefl- breached that if tho conser- vatives were élected, bar-roams would be opened and tho interests

‘ oi’ the Province would be cold to

the brewers and the distiilers. Their "iml-‘tliln was effective; they "ilhicned the women, and, with 0w assistance of ‘other electors they Iucceeded in winning tho election.

Elvin! obtained power under such auspices, these gentlemen. Pildiiwlly new to political life.

certain class '0! people, undertook the responsible business of legislat- ing for the Province. What was to be expected? What we expected, Mr. Speaker, we have r dived.

I would depict for you the first Act of this Government, when they launched that extravagant scheme of road ntachines, and when the "big” Minister of Public Works or- dered by telepho $100,000 of road machinery without authority from this House. That was the first tran- saction. Others have followed. and the result of this regime of extra- vagance in every department, has been an increase in the debt of the Province of over three quarters of a million dollars-practically double our increase of debt during the four years that we were in power.

CAMOUFLA GED PROPAGANDA

The Guardian newspaper has been abused for‘ publishing certain statements in the press regarding the Public Accounts. Moreover, the hon. member from Rustico has cir- culaied a pamphlet, signed by him- self as chairman of the Public Ac- counts Committee; and may I tell you, that I, a member oi the Pub- lic A 11$ Committee; was not present at the meeting at which that evidence purports to have been taken; neither was my hon. colleague from Souris (Mr. Mc- Lean). We had due notice, of course, but we objected to attend- ing ior the simple reason that we had not received all the reports, a-l- though they wcre due long beiore the first meeting oi the Public Accounts Committee. We had not received the report of the Depart- ment oi Public Works, a very Im- portant report, and consequently we were waiting for that to be ls- sued.

It was o. very improper proced- ure on the part of the hon. mem- ber from Rustico to circulate to the members of this House the report of an examination. carried on by himself and his co-membe r. of the Liberal party in that committee. I have attended many meetings of the Public Account: Committee in the past, and I have yet to hear of any‘ examination by the Govern- ment menrbers to convince the Government members of their own Public Accounts. In effect, they went there and demanded of their own Auditor the tllk of convinc- ing them that than reports were correct. They have ' made long speeches about the Provincial Aud- itor - - - that he was a man 8801050 whom no blame could be attached; that he had been our official under the Mathieson Government. and so forth. we all realize that. But he B the same Auditor that followed the improper request of Premier Bell in 1923, when he demanded that the expenditures and receipts of the Arsenault Government be added up to a certain time and a line drawn and a balance struck, in or- der to show a "deficit" oi $354,000 against the Conservative Govern- ment for the purpose oi carryifl8 l by-election in Kim's Coimty- 1'16 was requested to do" that, and he did it. The books, of course. 01h b6 made to show almost anything. if you arrange tlrenr in that way.

eluonasr" sour-buses

r recall in ma. in this 110""- when the Public Accounts were tabled, that the Bell Government h“ g, yer-y urge surplus. What hap- pened‘) Those Public Accounts were immediately recalled by the officials, within an hour or 0W0 after we saw them. Why? Decal!“ the surplus was too llfle Mr. B611 had instructed his Auditor to W0‘ duce to this House e "modest sur- plus," and those figures were re- called and we were issued-with l second edition oi the Public Ac- counts which would be more 1n keeping with the Premier's "mod- esty." The reason for this we learn- ed later. It seems that a dolfllmih of War veterans were alkinl 1°? i grant, and Mr. Bell told them he could not grant their Mlle“ 0°‘ cause the Government could not

stood there was e. large surplus- "Oh," he said, “that was an error." They looked in the Accounts. 98 given in the second edition, and saw that the "surplus" had 8105011’ decreased! (T ‘ t).

The same thing happened cvfly year under Liberal rule. The fir“ year they were not quite 5° 0°10- They only omitted one item in the sinking fund. The second year they _omitted two items, and the ihhd year they omitted thrBB- 0i 00""- ihe. Public Accounts do not show the real deflclt. Do you lmllille that the Government, with Ilwll I recorder it has had in the inst three years, would like to show a deficit? They will resort to evfl’! means to show at least a "modest" surplus. That has been the Bell P01‘ icy ,and it is me Lel Government policy; to lllDI l. small "surplus" and yet show large increases in the public debt.

Resuming the debate on ‘ruesdey aitemoon. Mr. Arsenflillt said: 1 was mentioning this peculiar document which was circulated ih

balance to go in the ordinary re- ceipts, u in former years. But no; m]; yggg they put the total re- celpic in the revenue column Ind did not charge up the amount re- quired for sinking fund.

We find that the amount requir- ed to be taken out for sinking fund. highway debentures (vise 19) was $21,250 If they were I0!!!‘ to in- clude that amount in their . account they should charge. still!!! that the appropriated airrkllll film! and they failed to do that last year.

IMPBOPER. ACCOUNTING

Toke the gasoline tax receipts. The total amount is accounted for in the revenue column, and there is nothing to show that they have taken from that source of revenue an amount sufficient to provide ior the sinking fund, as provided by statute. We remember that in 1927 they funded the gasoline tax rc- ceipts and borrowed $100,000 ior the purpose of buying these heavy load machines, and those bonds would mature in ten years; so that they would be due in 1087. Unless this Government withdraws from those receipts a sum sufficient to place in the sinking funds, they are not giving us l. proper account- ing, for the reason that every year those machines are depreciating really more than is represented by the sinking fund, $8.500; and I maintain that that, at least, is n. real expenditure which should be taken out of the gasoline revenue

this House and placed on the desk oi every member. It is signed by the chairman. oi the Public Ac- counts Committee. snd the intro- duction purports to be a messed"? to the Legislative Assembly. I was going to read it, but perhaps that would necessitate the members standing, as when they receive a. message from the lieutenant-Gov- ernorl However, it is headed: "In- vestigation into Public Accounts." I have yet to hear of any similar procedure having taken place und-

and charged to the expenditure column.

In other words, there is $21,250 which they should have taken out oi ordinary revenue and placed in sinking funds for highway deben- tures, and another sum ‘of 88,500 which they should have taken out ofgasolinc tax e ceipts and placed in the sinking funds ‘for road ma- chinery bonds. They have failed to do so, and therefore the Accounts do not show that expenditure of 829.750.

er any Government 1h the past. Our friends opposite seem to have

doubted that the Accounts were correct, and they held that inves- tigation to satisfy themselves and u; distill.“ propaganda among the people oi the Province on the eve oi an election.

CONFUSING THE PEOPLE

If you follow the qustions and answers throughout, you will find that the Provincial Auditor is just explaining his method, admitted ‘by him to be a new method intro- duced last year. ‘rheohsnge was made, he claims, in order to make the accounts "clearer." And the net result oi his efforts apparently, has been to confuse all the members on the Liberal side of the House, ior they have had to hold an "in- vestigatiun‘ to find out whether the accounts were correct. Not only that, but he has confused all the people in the Province who will go to the trouble of looking into the Accounts. To my mind it is a wrung time. to introduce a new method, Just in the last year of their regime.

My hon. friends not only thought it necessary to ille_ Pro- vincial Auditor, but they examined his assistant, Mr. Massey. In some places it is stated that Mr. Massey was examined, not as assitant aud- itor but as an expert, and I believe that the figures as disclosed in the Public Accounts have even confus- ed this gentlema ; for in one place when he is asked, "Ix it correctly stated on the other side?" he dues not answer yea or no, as one would expect him to do: lie says: “Mr. Anderson can explain that." So Ir it any wonder that we have had this year so much trouble over these Public Accounts. .

On page ‘I, part 1, the Public Ac-

counts show the total ordinary ex- penditure to be $1,383,806.04; and on the other side, on page 6, they show revenue in which we find two items, motor - vehicle receipts, 0145.095 and gasoline tax receipts. $141,050.80. We- know that during the time of the Bell Government, the auto fees were earmarked for the purpose of providingJnking fumh and interest on debentures for" highway improvnmen . ‘Thero- fore I take it that the first duty of this Government, after the moneys came in under that form of tex- ation, woo to provide for those two expenditures. That was the proper action; and they should show those amounts, taken from those funds, in-tbe expenditure colhum oi the

make revenue and 11901141"!!!

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If you take that amount and add it to the $18,515 appropriation for ordinary sinking fund, you will have a total oi about $49,000. Take their alleged surplus from that and you will have s, real deficit of $32,- 000.

Even the Premier, while making his Budget speech, agreed to what I have Just stated. I-ie said they had made such showing that not- withstanding the fact that his pre- decessor in ofllce had budgeted for a. deficit oi $38,000, he could say that he had come within 05,000 oi that amount.

PREMIER LEA: 55,000 below that.

received $141,000. You see there mother large increase. Moreover. for the past two years this Gov- ernment, instead of “Lg the ctr.- tute labor performed on our roads. collected the cash from the farm- ers and fishermen, and from that source they received some $29,000 a year. These extra revenues, over and above the limited revenues we were getting while In oflico, sm- ourrted to over $300,000 a your; and they have spent than: all. They have received in their four years