BUOGET FORECAST.

Auckland Star, Volume XLI, Issue 169, 19 July 1910, Page 2

BUOGET FORECAST.

RECORD YEAR'S REVENUE, SURPLUS OF £432,316. ESTIMATED SURPLUS £700,000. EXTESTCTTOSr 05 , THE PUBLIC DEBT. {By Telegraph.—Parliamentary Reporter.) WELLINGTON this day. The Budget comes down this evening. It will be found that the surplus at the end of the present year (that is, March, 1911) will be between £700,000 and £ SOO.OOO, out of which the Public Works Fund will be assisted during the financial year to the extent of £500,000, and the loan for public works (which last year amounted to two and a-quarter millions) will this year be reduced u> £1,500,000. The satisfactory position of the revenue of this year, added to the balance from the beginning of the year, enables the consolidated fund to provide a larger amount than was available for public works last year. This shows the improved position financially, and the reduced amount that can be borrowed, a3 against the higher amount necessary when the consolidated revenue could not be drawn upon for assistance. A SPLENDID RECOVERY. It will be the pleasant duty of the Prime Minister to congratulate the country upon a magnificent recovery from the depression—due to a temporary fall in values of its staple products. Last year's revenue reached the record proportions of £9,238,261 —exceeding that of the previous year by over £230,000. Expenditure for the first time for many years was less than the annual appropriations to the extent of £95,970 —thus showing that there had been substantial economy, be■eause the large increase in revenue might have reasonably been accompanied by an increase in expenditure. The surplus to be announced is £432,316. New Zealand's public debt is about £70,000,000. Such is the magic of compound interest that an annual payment of £156,000, invested at four per cent, would repay this sum in 75 years. This 3s the basis of Sir Joseph Ward's important proposal for creating a sinking fund for repayment of the Dominion's loans. It will be fully explained in the Statement, and no doubt adopted this session, together with anothi r financial innovation of importance—the post audit system. LAND BILL AMENDMENTS. The Statement will outline the intention of the Government to introduce a Land Bill, and make provision for obtaining further areas of land, and also for putting the question of tenure in such a position as, while not sacrificing the interests of the State, will do justice to settlere. It will be considerably altered from last year's bill, and will not ibe altogether in the freehold direction. Amendments to the Land Settlement Finance Bill will provide for an increased area, as 200 acres as not considered large enougn. Improved facilities will be provided for parties to take up freehold areas. SUGAR BEET INDUSTRY. Proposals will 'be made for the establishment of the sugar beet industry, so that private enterprise may "be encouraged to take up this work. Provision will be made wnereDy tue State may take over such as a State concern. LOCAL GOVERNMENT LEGISLATION. One of the most important proposals contained 'will have reference to local government legislation. The proposal is to assist local government to the extent of a quarter of a million pounds per year, and abolish a number of local bodies already in existence, to widen the powers of those remaining, and give them jurisdiction over larger areas. It is suggested that they should administer the work of education boards. There are seven hundred or eight hundred local bodies now in existence in the Dominion. Many of these will voluntarily agree to submerge, and so decentralise matters of road maintenance, etc., and make their finances assured. PACIFIC.MAIL SERVICE. The statement also forecasts legislation to effectively collect rates on native lands and the settling of tenures of native townships, also for providing a suitable Pacific mail service by New Zeajand if other means are not successful. NEW PARLIAMENT HOUSE. One of the matters to be dealt -with in the Financial Statement will relate to the new Parliament Buildings in Wellington. It has been estimated by the Government architect that a suitable building can be erected on the Government House site at a cost of £ISO,OOO. The building would be fireproof and earthquake resisting, having steel frame, stone walls, and ferro-concrete walls. The front portion, including the Chamber of the House of Representatives, could be erected without interfering with the present building, which could be/ utilised until the other is partly readyj This portior would ' cost £90,000, and would provide ample accommodation for Parliament for the next six or eight years, by which time the old wooden building would be too depreciated to be of further service. The administrative offices now housed in the big wooden building will be in due course transferred to fireproof buildings to be erected on the old Parliament Building site. The old Government Building, which is rapidly nearing the limit of its usefulness, stands on a liberal area, and has plenty of open space on all sides, and it has been suggested that so valuable a block could in time be readily cut up and leased for business purposes, as is done with other reclamations in the city. The freehold is said to be worth over £300.000. Sir Joseph Ward is of opinion that the receipts from this land would pay interest and sinking fund on the whole amount required to provide new Parliamentary and departmental buildings. The Financial Statement will probably contain a reference to the new central railway station which must soon be provided in Wellington. It may safely be prophesied that the financial debate will be fairly lengthy. Many of the leading speakers on °both sides of the House did not take their opportunity of debating the Address-in-Reply. but the Financial Statement -will contain too many important matters to bo received with anything but the liveliest interest.