THE FINANCIAL STATEMENT.

Auckland Star, Volume XVIII, Issue 257, 1 November 1887, Page 5

THE FINANCIAL STATEMENT.

FORECAST OF ITS PROPOSALS

TARIFF REVISION POSTPONED.

FREE TRADE IN NATIVE LANDS,

DRASTIC RETRENCHMENT.

REDUCTION OF GOVERNOR'S AND

MINISTERIAL SALARIES,

NON-POLITICAL RAILWAY BOARD.

JLoau of a Million

PROPERTY TAX ONE PENNY.

(BY TELEGRAPH. — PARLIAMENTARY

REPORTER.)

Welmngtox, this day.

Many rumours have been sent out during the past fortnight of the probable nature ol the financial proposals of the Governmentbut theee are for the most part pure conjee ture, and in every instance it might l e truthfully said that a minimum of fact has been associated with a maximum ol baseless rumour. Ministers have kept j- ; heir secret so well that their in* tentions in the matter of iinancial policy are unknown even to their warmest »up-

porter?. Circumstances have, !ow sc far favoured me that I am in a \ oaitivu. *o supply your readers with the following r» liable forecast.

.It may be anticipated that the Treasurer attheoutsetwillinformthecommitteethaton no previous occasion had his task of making the Budget caused; him to feel a greater sense of responsibility of the difficulties besetting him ; but he Mill express his conviction that since the colony has determined on rigid retrenchment, these difficulties will be overcome.

The. Statement will announce the determination of the Government to repeal the Crown and Native Lands Rating Act, Ministers thinking that there large districts in the colony where the same laws can be applied with advantage to natives and Europeans alike. In those declared districts Maoris will be liable i'x> pay rates and taxes and will be permitted to' deal with their lands as freely as Europeans; after the Crown title haa been obtained save that they will be compelled to retain sufficient lands for the maintenance of themselves and families. In unproclaimed districts, which will not be subject to taxation, Maoris wiil not be> permitted to part with their lands to anyone but the Crown, except under more striiigfcnt conditions. Before final legislation on"this subject is proposed, the natives will W consulted with in the recess, but it is the/ intention of the Government to immediately introduce a bill remedying certain pressing evils. -..

On the.ques'cion of the tariff we shall be told that till this question is settled trade will contimVß to be disturbed. The Ministers have the question under consideration, but in viev/ of other important matters the work of revising the tariff cannot be satisfactorily attempted this session.

As the chief difficulties in the past have arisen from a too lavish expenditure, more especially of borrowed money, the Government will refer to the for the cessation of borrowing and the taking of all possible means tc* prevent the waste of ordinary revenue and of money borrowed for public works.

Stress -will be laid on the necessity of prompting <the settlement and occupation of lands by persons of means, and of rendering t&ts form of settlement attractive to persons, willing to cultivate and develop land. The (government hope in due course to get an increased revenue without increase of taxation or the same revenue with less taxation; The introduction of considerable numbers of persons possessed of sufficient means and knowledge to cultivate the land profitably is absolutely required and the establishment of Pensioners' Settlements is also strongly advocated as an essential to the settlement of the country.

The land laws will be sdmended and isimplified where possible, anc'l made uniform, so as to remove all unnecessary restrictions and difficulties. Full freedom of choic eas to tenure will also be allowed selectors, and legislation is promised to enable a bona Jfide settler to get possession, of and title to jhis land with the least possible delay and. 1 expense. ; ;

On the t]uestit)n of mining a more «omplete teclinicar education will be affouded with a view to avoiding waste, and that lodes and oces which are not now knowni, or are not payable, shall be worked wifch profit.

As to railways, the fact is admitted thai;the public has been long dissatisfied with their management, and in view of the success attending the non-political Board of Management in Victoria, leave will be asked, to introduce an Act constituting a similar Board for New Zealand railways. From this change the Government anticipate a large increase in the net proifits from rail-, ways. .'..'■• :

With a view to effecting the large reduc- i tion to be proposed in the public service, ! alterations will be made in the salaries of' those receiving Upwards of £150 a year. A beginning will be made at the top of the ladder, and it is proposed to recfupe the salary of future Governors to £5,000, including, the cost of his staffand allowances, a saving of £2,500 a year being tbus effected. The Premier's salary will be reduced from £1,750 to 1,000, and other Ministers'from. £1,250 to £800.. The number of paid Ministers is to be reduced, from seven to, six, simultaneously with a reduction of the number of members of the House. Ministers' travelling allowances will be limited to 30s a day, while actually travelling on tiie public service, but the total in no ca«s must exceed£l,ooo for whole Cabinet during the financial year.

As to residences it is suggested that the Tinakori Road residence be sold as being too costly, and of the other two that one be retained for the Premier and the other sold, and that Ministers now resident in ton shall receive a house allowance of £210. ■

Dealing with legislative expenditure, the honorarium will claim first attention. The Legislative Council will be invited to accept £100 and members of the Lower House £150, and payment of Chairmen qrr Select Committees will be discontinued.

An important proposal involving economy will be furnished in the introduction of a'oill reducing the number of members to seventy, including the Maori representatives, and a reduction of the number of paid Ministers to six.

In" connection with education moderate savings will be shown, without weakening the system. The principal-proposal twill be a reduction of the capitation grants, from £3 19s to £3 15s. per head, and not to pay capitation on any child under six -years, care being taken that no country school be closed in consequence of this chtange. The question of higher education and its coet will be gone into thoroughly at a later stage of tbt »ea»km. The** proposals, if *S**A ♦% *fil r«J*CK*I»» *»i«r~ *.TB!)Un6 Of

departmental appropriations to '£251,500, while the total reduction chargeable for the year oh the revenue of the colony is £292,000. Of the latter amount i<71.000 can be saved during the remainder of the current financial year. In reference to grants to local bodies tfao fact is recognised that if the assistance now being given to them is to continue, our taxation must be increased to a proportionate amount.

Allusion is made to the fact that; wiieo the Crown and Native Lauds i< atiutj; Act was passed it was estimated tliafc there would. be a sufficient surplus in. the land fund to pay the rates on Crown lands. That estimate proved incorrect. The foot is also ■recognised that; the advantages conferred by the Act have operated unequally hi various parts of the colony. Consent to its repeal is given with regret,the Treasurer admitting the fairness of the principle that all lands, by whomsoever owned, should contribute to the maintenance of roads in the districts in which they are situated; t but as money must be found for opening up new lands for settlement, and we cannot} continue borrowing for that purpose, io seems better In the interests of the colony to use the money at the disposal of the Government for that purpose than apply it to the relief of local taxation. The repeal means a saving of £34,000 to the land fund, as well as the amount paid in rates on native lands.

The question of subsidies to local bodies is dealt with. They are referred to as a precarious source of revenue. The late Government proposed last year to reduce the subsidies by one-half, and the Colonial Treasurer now has a similar proposal on behalf of the present Government with great regret, and hopes to be in a position to continue them at the same rate next year. The necessity for local works is admitted, and also the fact that large sums of money could be profitably spent by local bodies, bufc the answer is, "We have nob gos iiinnev to spend : we have been spending too lively, and now must stay our hand from evow useful AvorUs—raise money for them .ocaily. " It is proposed to raise a loan of one million, and a promise is made that there will be no more borrowing for three years. The property tax is to be increased from thirteen-sixteenths of a penny to a full penny. In summarising the reductions the Treasurer will place them at f£300,000, including members' allowances, £10,000 ; departmental appropriations, £251,500, _ including Ministers' residences ; reductions in rates on Crown lands are £34,000.

The amount to be gained during the current financial year from these reductions is £71,000. The] proposals for the current year are thus stated : The expenditure is expected to exceed the revenue for the year ending March next by £389,305 if expenditure proceeds on the present basis, and further taxation is not imposed. The saving ot iVI,OOO already referred to is, however, expected. The Government propose to still fui ther reduce it by increasing the property tax from thirteen-sixteenths,of a penny to a full .oenny. The■Sβ reductions will bare a deficit of £250,0 90 still to be provided for. This with deficit Of last year amounting to £92,293 on the ordiuwy revenue account, and £54,263 on tne La tid Fund account, makes a grand totalofabwit £395,500. \ It will iilso be necessary to meet, the amount reil l " re( * for compensation for loss of ofh cc whiph will . probably be considerable. I" making proposals for the current year t he Colonial Treasurer says thp proceeds of deb «nture*mnountmg to £48,000 per year, and increasing yearly will be swept into the* consolidated fund,* and with such an amount as is saved from revenue before March next, should he set apart- to redeem yearly a corres.pondinc- portion . s>f the deficit and it* the meantime it is proposed that shorf, rates debentures payable in the colony shxrald be iesued.tovcoverjibe deficiency, In conclusion, iVhe Treasurer frill announce, that circnn istanc.es compel him to ask for sanction for H million loan tins year; its purposes to.be distinctly denned, and.»i> undertaking being gi Yen not to borrow tor three years from Mardi next. . , _ This loan will alloKv the annual expenditure of £690,923 available for all ctesw* . ot the Public Fund as against ±1,381,86b expended during the three years ao a reduction of- exacxtly fifty percent. This may be regarded.Sk3 the "tapei'ing oil policy, which the colony has so clamorously demanded. t