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Formal Amendment Launch-- ed When Tweed Scores Budget _ The Tweed motion was seconded 'ycsterday by R. A. Baxter (South | Oxford). Eirst Day oft Debate. _ _ .. UBERALS ASSALL TORY FINANCING MANY JOIN _ DEB A TE Renfrew Member Enlivens Occasion by Talking of March 17 With 8. C. Twsed (North Water--| loo) in the van of atiack, the _ib-- erals of the Ontario Legislature threw off today the policy of passive re-- sistance that sscemingly has been theirs since the present session opened, and struck hard at the Henry Government's financial policy and financial record. Before the House now reaches the main motion of Provincial Treasurer Dunlop to resolve itself into a Com-- mittee of Supply to consider the esti-- mates, it will have to deal with the amendment from Mr. Tweed that would commit it to an expression of regret, "That the Government has failed to relieve the people of the Province from unnecessary and bur-- densome taxation,. and has announced no plans for a complete survey of all taxation, municipal and Provincial, within the Province to make taxation reduction possible." Yesterday's debate--the first big day of what is termed the Budget debate --was pushed by Premier Henry to 10.30 o'clock at night, in order that a wind--up might be assured for to-- morrow night, or by next Tuesday at the latest. No fewer than nine speak-- ers figured in the day's cross--benches argument, with Hon. Dr. Joseph D. Monteith, former Provincial Treas-- urer, being put up by the Govern-- ment immediately after Mr. Tweed, and the rest coming along in the fol-- lowing order: F. W. Elliott (Liberal, North Bruse); Rev. A. C. Calder (Conservative, West Kent); T. P. Murray (Liberal, South Renfrew); A. Y. Waters (Conservative, North Coch-- rance); R. A. Baxter (Liberal, South Oxrford), J. F. Strickland (Conserv-- ative, Peterboro'); and J. A. Sangster (Liberal, Glengarry). _ _ _ _ o Outstanding among the day's de-- bate contributions were Mr. Tweed's allegation that contracts given by the Government through the Hydro--Elec-- tri>: Power Commission are making possible the building of great power plants in Quebec; Mr. Calder's stud-- ied appeal for an intensive campaign ' of temperance education in Ontario | that would teach self--discipline, self-- | knowledge and self--control; and the | whimsical utterances of Mr. Murray, the Liberal lumberman member of the House, who rose with a sham-- rock in his buttonhole, acknowledged a salutatory song from the House, and then talked everything from wolves to baseball in bringing his condem-- nation of Government policy to the doorstep of Premier Henry and At-- torney--General Price. es 454. ance); R. A. Baxter (Liberal, SOUuUl u; 7 ur 'a~ Wui J:ford), J. F. Strickland (Conserv-- The T. & N.O. Rall\u'iy was built tive, Peterboro'); and J. A. Sangster for colonization and dt.ave.opment and Liberal, Glengarry). has undoubtedly justified its con-- Outstanding among the day's de-- struction. Now that it is at least| jate contributions were Mr. Tweea's mceling expentes it would onlyhbe llegation that contracts given by the 8008 business to permit it to reach a sovernment through the Hydro--Elec-- good financial position before levying ric Power Commission are making Interest ubpon it. nossible the building of great power 'The total assets of the T. & NO plants in Quebec; Mr. Calder's stud-- Rallway amount to $41,467,662. This | ed appeal for an intensive campaign includes, according to the last state-- f temperance education in Ontario ment, property and equipment at hat would teach self--discipline, self. Original cost. Against this there has: knowledge and self--control; and the been set up by way of depreciation whimsical utterances of Mr. Murray, only the sum of $1,212,623, a vory the Liberal lumberman member of small amount when we consider that the House, who rose with a sham-- the railway has been in opsration for rock in his buttonhole, acknowledged over twonty--five years. As a result of a salutatory song from the House, and |th¢ policy of the Government in with-- then talked everything from wolves drawiqg funds from the railway vac_:'n to baseball in bringing his condem-- year since _1925. the T. _& N.O. Rail-- nation of Government policy to the |WAY Commission was obliged two yeatrs doorstep of Premier Henry and At-- |ago to i:sue $6,000,000 of 4 per cent. torney--General Price. bonds guaranteed by the Province. If the municipal income tax is to be Had the Railway Commission been continued in Ontario, it should be, allowed to retain its earnings during contends S. C. Tweed, Liberal, North|the past six ycars it would not havey Waterloo, at the same rate in all mu-- been necessary to issue $6,000,000 nicipalities, and every municipality guaranteed bonds for the purpose of should be compelled to collect it. carrying out the present program of Difficulties of Surplus. extex'i'slon of the railway to James "At the beginning of the last fiscal BaY. ; Dafaorrina ta aynenfitures nnder the AND DEMAND VOTE year," said Mr. Tweed, "the Govern-- ment made a change in its method of bookkeeping, whereby the cross--entries were eliminated. This change has enabled the Government to show the revenue, or Provincial taxation, as $57,343,291, instead of, approximately $71,000,000, as it would have been shown under the former system. The amounts collected from the munici-- palities for highways, old--age pen-- sions and mothers' allowances are taxation, and should be shown in the Provincial revenues. '"The Government has each year used its surplus from the preceding year to carry out the debt--retirement plan. The 1929 surplus of $2,642,894 was more than sufficient for the 1930 requirement of $2,251,294 for debt re-- tirement, leaving a balance of $391,-- 600, but the year shows a deficit of $646,061, which leaves the Govern-- ment $254,461 short of keeping up the debt--retirement scheme. If the $391,-- 600 has been used up in some other way, of course they are now short $§646,061. "From the 1930 accounts it will be noted that all debt--retirement items are charged to capital. In the year 1929 the annuities, etc., and all of the regular instalment, excepting $228,-- 236, were charged against revenue. "In the current year 1931 the Gov-- ernment will have to make up the shortage of $254,461 out of revenue, and provide probably $2,700,000 more to keep up the plan. That is, it will have to provide about $2,950,000 for d2abt retirement before any surplus can be shown. "Excluding the year 1923, the Gov-- | ernment shows a net deficit for its | period of administration. Leaving out 1924, 1925 and 1926 also, there is still a net deficit. The 1927 surplus | of $359.223 was absorbed in debt re-- | tirement in 1928, the 1928 surplus of | $228,236 was absorbed in debt retire--| ment in 1929, and the 1929 surplus of | $2,642,894 fell short of meeting the , 1930 debt retirement of $2,251,204 | plus the deficit of $646,061. "The Government estimates for the current year woere: revenus, $59,985,-- 000: and expenditure, $62,655,000, in-- cluding $2,700,000 for debt retirement. ; Leaving out debt retirement, that: would mean a surplus of $30,000.| Thus, on the basis of these estimates, ' they would land $2,924,461 short of | their dobt--retirement plan as at Oct. | 31, 1931. The current year's results | are, of course, likely to be worse than was anticipated, unless heavier tax rates are put into effect at once. It | looks as though the Government may ' fall so far behind in the debt--retire-- ment plan that the latter would have to be dropped. ?Crltlcism of Methods. | "The withdrawal of $6,300,000 from | the T. & N.O. Railway during the past | six years is one phase of the Govern--| ment's financing that is open to critici--m. C o | Referring to expenditures under the aveh :8 Department of Northern Development, Mr. Tweed said that these had come in for a great deal of criticism in recent years due to the fact that moneys for the same were annually voted "blank cheque" made by the Legislature. "I suggest," he added, "that in future the Government present estimates showing approxi-- mately the amount of money to be spent in each district and the nature of the work when asking the House to vote the appropriation for North-- ern developm:nt." Liquor Sales Profits. In regard to the administration of the Liquor Control Board, Mr. Tweed said: "During the past year the Province received $7,500,000 from the Liquor | Control Board as profits, fines,| licenses, etc., and confiscated st.ock.f An additional sum of $965,000 was| recsived in permit fees, The report| of the Liquor Control Board for 1929' showed that the board had a gross profit of 20.89 per cent. of sales, and after expenses and other adjustments, a net profit of 17.45 per cont. Liquor is evidently costing the board 79 per cent. of what it is sold for. *"*For a comparison, the Quebec Liquor Commission for the year end-- ing April, 1929, reported sales of $27,-- 007,431 and cost of sales $17,329,244, or 64 per cent. of sales. While the system of selling is different in the Province of Quebec, it would appzar that the Quebec Liquor Commission is able to purchase its liquor stocks on a more favorable basis than the Ontario Liquor Control Board." Highway Taxes. On the subject of "where dses the gas tax go?" Mr. Tweed said: "During the last fiscal yerr (1930), the ravenuse of th2 Highways Dopart-- ment, including gasoline tax, amount-- ed to $16,410,560, while the ordinary expenditure on acscount of roads was only $4,968,625. What became of the difference of $11,446,935? Was that difference used to defray the cost of new roads? The public is under the impression that this money is being so applied, but the money was not so used. The capital expenditure on account of now roads during the last fiscal year (1930) increased our road debt from $103,721,544 to $116,612,-- 902. In other words, the Government borrowed the money for that expen-- diture and increased the debt there-- by, and applied the surplus which thsy collected to financinz octher oper-- ations in other departments. "*For the period 1904--30, there has been collected for motor vehicles li-- censes the sum of $860.523,669. When we add to this the toial collscted by way of the gasoline tax, amounting to $33,244,437, we find that motorists of Ontario have paid into the Treas-- ury of this Province $93,768,006, an amount not far short of the total highways debt of the Province. "Since the inauguration of the gas tax, the Government has paid out over $1,000,000 to the oil companies for remitting the tax to the Provincial Treasurer. This should be stopped, and over $290,000 per year can be saved to thse Province. '"The present system of charging a license foe and a fee for the driver's permit puts an unequal burden on those people who, because of climatic conditions, can use their cars only part of the year. I sugzgest to the Govern-- ment that the present system be changed, and that only a nominal fee of, say, $5, be charged for mark-- ers and drivers' permits, and that the gasoline tax be increased sufficiently to make up for the loss of revenue through the reduction of the license fee. This would have the effect of making every car, truck and bus owner pay in proportion to the miles of driving." Practice of Economvy. Dr. Monteith, following Mr. Tweed, granted that the latter's criticism was fair, and had no doubt the Provincial Treasurer would give his suggestions due consideration. Amid dosk--thumsing and some ironic chesrs, the Minister declared. "Ws havs always practiced economy." Rocarding the cross--entry system adorted in the Provin:rial book-- kzseping this year. Dr. Montrith said: