DOMINION FINANCE.

Auckland Star, Volume XL, Issue 253, 23 October 1909, Page 5

DOMINION FINANCE.

HELLION - LOAN" FOR PUBLIC WORKS. STATEMENT BY THE PRIME MINISTER. (By TelesTapo.—Parliamentary Reporter.) WELLINGTON, Friday. When the Loan Bill was brought down this afternoon, the Leader of the Opposition said he should like to know whether the Colonial Treasurer intended to provide the House with the necessary financial information before proceeding with the bill. "We seem," he went on to say, "to have got into a very extraordinary position. We got a. Loan Bill during the short session in June last without the usual financial statement being laid before the House." He did not say they had no information at that time, because a certain amount of information was supplied. They had been told that the last loan was raised at 3* per cent at par, but n& information was given in regard to the terms of the loan, or whether the money was simply lying in our hands at call, as was suggested was the case. The Prime Minister said he was prepared to give all reasonable information to the House from time to time, but he could not give information regarding loans while negotiations were in progress. Mr Massey was wrong in stating that no information was placed before the House last session. The general financial position was placed before the House. The only reason for the Loan Bill being submitted now was the fact that they had to consider the requirements of the public works fund up to September, 1910. Besides, they were approaching a period in the Old Country, in connection with financial matters, when it was advisable for such a country as New Zealand to carry out its financial operations, and not wait much longer. The bill proposed to authorise a million loan for public works purposes, and. nnless there was some contentions or unfair criticism, there was no reason why they should not put the bill through that day.

Mr Massey: Most outrageous. Sir Joseph Ward went on to say that he proposed to take the second reading of the "bill on Tuesday. In connection with last year's session's loans, all the .conversion of stock and scrip, everything in connection with the conversion and renewals of loans, was not being finally completed in London. Until they were completed, he could not give the information, however much he desired to do so. So that members might understand the financial position, and be able to discuss th bill with a knowledge of the position, he would have a statement circulated that evening. Mr Massey said he was glad to hear it. He was still in doubt about one matter in connection with the ioan raised wEile the Prime Minister was in England. They had been told the mor.ey was obtained at par. Sir Joseph Ward said that continual reference had been made to the Government issuing short-dated debentures, and he wanted to say that, speaking generally, it was not the practice of the Government to issue short-dated debentures. In most cases a currency of at least seven, years had been insisted upon. In the case of money raised in Australia, the money raised there had a currency of 14 or 15 veare. The recent loan laised in London, had currency until 1940. Satisfactory arrangements had been made for the renewal of loans falling due. Of the total amounts falling due, £2,441,448 hod been renewed, and £984,750 had been provided for by debentures. In these transactions a large saving in interest charges had been made, the total saving on the whole of the transactions amounting to £5,200 per annum. In. April of this year £150,000 worth of debentures were issued at 3J per cent, and was realised. He wished to make it clear that the 99i rate was free of brokerage or discount charges. The right of conversion was given afc 97 per cent at 3$ per cent. He believed it was a good thing to make provision in certain circumstances for giving the. right of conversion at a lower rate of interest. New Zealand had got the money it required as cheaply as possible, and he did not wish to parade how successful it had been. In connection with the million loan, he explained that there were no brokerage or discount charges. The money had not been - put upon the market, and it was raised at 3J per cent. Mr. Massey: What was the term? Sir Joseph Ward: There was no term. The Prime Minister again explained that the money had been raised at and said that he was not going to enter into details. He arranged to enter into negotiations for the money, and he hoped they would be as success-i ful as other loans of this country had been. The treasurer of a country was frequently tongue-tied, realising what the financial obligations were, but he stated that this year New Zealand had obtained a portion of the money it required in London at 2* per cent on temporary advances. He merely mentioned this as a fact. Sir Joseph spoke of the necessity of completing the rail-ways, and of the prime necessity of seeing that money was not expended on railways which would not pay. He repeated the observations which he had made to a deputation a few days ago on this subject, and said he thougiht it was the duty of the House to prevent cases of the kind, which existed in New Zealand to-day <i.e., non-paying railways). He added that there might be some comment on the fact that the Government had brought down a Loan Bill before the financial statement had been presented, but he wished to emphasise the fact thai the Government was not in want of money at present, but. in view of the possibility of a general election at Home, it wa3 well for the Government to be prepared to do what was required here. He hoped to be able to circulate the bill relating to local bodies and their finances on Tuesday next. In the meantime they should have the necessary authority to enable the money to be obtained in such a way as seemed best for the carrying on of important public works in different parts of the country. He concluded with a statement to the effect that no one coul I have any double about the advisabfeaess of investing in New Zealand stocks.

The bill was read a first lime, and set down for second reading on Tuesday.

EXyLAWATXOW BY THE PREMIER. (By Telegraph.—Parliamentary Reporter.) WELUNGTOS". this day. The Loan Bill provides for raising one million sterling- for public works purposes only. Sir Joseph Ward explained to a representative of this journal that the reason for the loan was not because the country, .waa short of monejr, public

works expenditure, he said, was being carried on at the same rate as heretofore, namely, when they had £300,000 from consolidated revenue. The loan was being raised in consequence of remissions made on Custom* taxation last year, and in view of the larger amount required for public works expenditure. We required to raise our loans, he said, at one period of the year, instead of, as in tlie past from time to time. The amount stated would provide, not only for the period up to March 31, 1910, "but until Parliament met again. Therefore, this loan made provision for needs up to the end of September, 1910. With, this million loan we would not be expending more than we added last year to the public works fund. The Loan Bill provides for the allocation of the money in the following manner:— 1. In Respect of Railways; Construction of railways, £300,000: additional rolling stoofc for open lines, a.nd sueb other works and purposes in connection therewith as may be authorised, £100.000 2. In Respect of Land Settlement and Goldlields Development : The construction of roads, tracks, and bridaes fGr the purpose of opening up back blocks; developing goldlields and such other works and purpobes in connection therewith as may be authorised, £200,000-. 3. In respect of other public works, £400,000.

THE FUSASTCIAI. POSITION.

PEIME MOTSTER'S STATEMENT. (By Telejjrayh.—Press Association.) WELJLUvGTOOv Friday. In the House in the evening i-ir Joseph Ward made a statement regarding lie financial position a≤ follows:— Ordinary revenue account at September 30: Balance on April 1 ia3t. £387,163; advances, £47,158; total, .£-134,321; less Treasury bills, £250,000; balance, «aS4*32i; Receipts, April 1 to September 30: Revenue, £ 3,7!>8,235; other receipts, £67.144; total, £3,S(ioJB-2; — grand total, £ 4 ; 049.7»3. ! The expenditure for the same period was £3,9G0,3'2?. Credit balance. £5«J,380; cash, £220,3!)5; advances, £379,782; total, £6O1)J58!>; Treasury bills, £550,000; balance,. £59,350.

Public Works Fund: Available for ways and means, April 1, £433.700; receipts from loan money, £1,o<10.000; other receipts, £043; total, £1,000,943: —grand total, £1<434.652. Expenditure: Annual -appropriations,- £003.79% other charges, £4137: total-, £907,933;. balance on September 30, £526,719.

The revenue for tne six months was: Customs, £1.284,151; stamps, £685,755;. land an<l income tax, £27,803; beer duty, £-51,&)4; railways, £1,459,647; registration and other fees. £35,734; marine, £20,8?,3; miscellaneous, £133,----"97; territorials; £.95386: totals £3,798.235. to - which, should be added national endo-wments, etc, £ 67,144, making a grand total revenue of £3.5G5.352. There was a falling-off in revenue, chiefly in Customs £. 120,250, stampa £53,300, and Teg-iatratioa £i12,5G0. Railways showed an increase of £l6TJyie. The reduced revenue of Customs and c tamps was due to the financial stringency. The receipts from railways more than compensated for the loss on. Customs. Tho total concessions oa Customs, railways, post and telegraphs, and sheep tax amounted to- £.560,905, Treasury "bills outstanding on September 30. 56C0.000, have beea reduced by £50,000. The expenditure on the ordinary revenue account was £3.900.323. made up of permanent charges £1,507,943, and departmental appropriations £2,452,380 — a, decrease of £ 11,781.

The total extended appropriations granted by Parliament last session, said the Prime Minister, amounted to £3,324.972 for ordinary departmental purposes, of which £2,482.380 had been exnended.

The expenditure on public works for the six months ended September 30 wai £907,933, the principal items being railways £403.503. public buildings £ 136,440. roads £250j>51.

The amount of cash/ available for land? for settlement was £335,662. The cash balance to the credit of the public account at the Bank of New Zealand wa3 £■056.1110, and other Government accounts £.500,030.

Public Worfca Fund: For provision of way 3 and means till September, 1010— Brought forward from last year. £434.000: loans authorised during , =bort session, £1.250,000; total. £1,684.000.

The provable expenditure for thp current financial year. =aid the Prime Minister, included: Railways. £800.0*10; additions to oncn lines, £350.000: li2hthouses, £20.0C0; roade, £452.0<X>: development of sroMfields, £35.000: telesrr.aph=. £120.000; contingent defence, £10.000; land improvements, £20.000: ■and (otliPT items making a total of £2,192.-950.