THE FINANCIAL STATEMENT.

Bruce Herald, Volume XXI, Issue 2178, 27 June 1890, Page 3

THE FINANCIAL STATEMENT.

In Committee of Ways and Means on Wednesday evening the Financial Statement waß delivered by the Hon. E. Mitchelson, on behalf of the Colonial Treasurer. It was unusually lougthy, aud we are only able to give the following condensed report : —

Tho Committee was congratulated on tho fact that the Treasurer's anticipation last session of ending the year with a email surplus had been more than realised, and that the surplus had ariaen not only from the improvement in the condition of the colony, but from the large economiea and oareful adminiatration of the Government.

The large increase of the settlement of small areas was indica'ive of real progress. The agricultural holdings were increasing at as rapid a rate as at any time during the oduntry's greatest prosperity, and there was a marked increase iv the productiveness of most of our main induatriec Everything waa so encouraging that we should now look chiefly to the bright side of things, rather than up.n temporary troubles and d.faculties, which beset us from time to time. He was induced to mike those remarks because such false impresß-ous had been made abroad by the reports of our depression, and travellers both from Australia and Eagland had been unfeitfuedly astonished at finding the people in the possession of every oomfort and convenience of modern life, working only eight hoars a day and able to enjoy very frequent holidays. The financial affairs of the Government were then elaborately dealt with. Under the Consolidated Kund the actual expenditure was £4,121 842, being less by £28,861 than was authorised. The ordinary revenue exceeded the estimate by £21,447. The expenditure under the Laud Fund was less than the estimate by £6230. The reoeipts

were £87,692 as against £136,100 estimated, and there was a deficiency of £34,227. The final resultß of the year after paying -what waa left unpaid of the deficit was a balance of £36 569, with which to commence the current year. The outstanding liabilities were less than those of the previous year by £15,186, and leas than the average of the las-, nine years by £36 783, and less than iv ISBI (when the present system w»b begun) by £38,362. " These facts," said the Treasurer, "are a complete answer to those persons who, professing to be well informed, are either ao ignorant or so disingenuous as to talk of the surplus of last year as being manufactured by holding over liabilities at tho end of the financial year. There seems to be an impression in aome quarters that our bookkeeping is faulty in that it ie possible for a Treasurer, with a view of obtaining a nominal surplus, to delay paying aooountß at the cud of the year, and so appearing to possess a surplus when in reality, if the acoounts which were due had been paid, there would have been none. This fear however, is clearly groundless. — in the firat place sb shown by our 10 yeara of experience ; secondly, because detection and exposure of such a proceeding would follow upon the pub lioation of the estimates of liabilities certified to by the several heada of departments whioh by law must be placed upon the table of the House within 10 days of the meeting of Parlia ment." The deficiency in the laud fund, added to the deficiency at the beginning of t ie year, amounted to a total of £45 706. With that debit balance he did not propose to deal that year. "It will be in the recollection of the committee that my hon. colleague the Minister of Lands eatimated he would be able to sell sufficient land to make the account Belf-supporting, but ho found tha' unless he made it compulsory on the part of purchasers to take particular blocks for cash, that is practically restricting them to a particular class of tenure, it would be impossible to obtain the amount of casb which he had estimated to receive. Such restriction would not have been in accordance with the policy of the Government or have met with the approval of the Home. It was, therefore, thought better to leave intending settlers aB free as possible to compete on equal terms, aelecting for themselves the tenure which would best suit tbeir circumstances — cash purchase, deferred payment, or perpetual lease — and not to make any attempt to balance the account by forcing the sale of land for cash. It is clear, however, if we were to continue this system of free choice of tenure we must face the fact that it vviil be impossible to carry on the settlement of the country without large extraneous aid to the ltnd fund. During the three years the late Government were in office the receipts from sales of land fell short of the chargea fixed by law and costs of survey, or administration, &0., by £147,200, without counting the amount expended from other fun- is in the purchase of land, on roads to open it up for settlement, or in settlement itself. For the two years and a half, to the 3lst March last, during which the present Government have been in office, tho reoeipts proved inadequate to meet the ordinary charges by £90 354." On the subject of the public debt, it waa stated that on the 31st March 1890 the gross estimated public debt of the colony amount ed to £38,6^)7 950, and the accrued sinking funds to £1,383,432 The net public debt was, therefore, £37,284,518. Of this sum there remained an uuexpeuded amount of £961.300. The state of the Public Workß Fuodß was then carefully explained, and summed up as follows : — "Summarising the transactions of the year, we fiud that we began with a balance of £1,445 670, increased to £1,458,105 by certain receipts, ,£12,525 ; that wo expended £410,729, inoluding over £28.000 for the purchase of Native lands, and that we had a balance in hand on the 31st March last of £1,04?,4G6, against which there were liabilities outstanding amounting to £304,932." Under the unexpended balances the sum of £87,974 is available under the Loans to Local Bodies Act, 1886. The estimated ordinary expenditure for the current year I waa stated at £4,127.417. In very few classes waa there any increase made, and in some there wero great reductions. With regard to ways aod means to meet the year's expenditure, the Treasurer referred to the subject of providing funds for school buildings. Tho question of loc illy, oharging these buildiugs had been carefully considered by the Government, who had oome to the | conclusion that it would be very difficult to make such a charge in fairness to the districts, and might seriously injure the system in ountry districts. Yet they did not sco their way to charge the Consolidated Fund permanently with the vote. Th-;y were of opinion that it would be wise for the Houße to make extra provision for a limited term, during which he hoped the Consoltdan-d Fund would so increase aa to render it possible to charge the buildings against it. The Government therefore proposed to coutinue the primage duty for another two years for the purpose of providing funds for school buildings and lunatic asylum buildings. The Government could not see its way to reduce, muah less abolish, the Property-ax in the present state of the finances. The sum estimated for the present year was no less than £355.000, and the practical impossibility of ramiog that amount in anything like as equitable a way had been shown in the diversity of opinion on fche subjeofc held by members of the present Parliament. The Government regretted they oould not Bee their way to make any proposal to reduce taxation, as it was impossible to curtail public expenditure without largely curtailing public conveniencss. Upon the pre sent basis of taxation the total ordinary revenue for the year would be £4,159,000, to which the surplus had to be added. If the estimates were realised, ther6 would be a surplus on the year's transactions of £48,092. The subjeot of the settlement of Orown lands was dealt with at length. It was stated that it will be impossible after this year to fiud money out of loan in aid of settlement, as the balanoe will be quite

exhausted. During the last five years £262,000 had been spent in that way.

The state and prospects of the colony were elaborately considered, and a large number of statistics quoted, ancl in various ways tho Treasurer showed that there was much occasion for congratulation on the improved and improving coudition of the people. The financial operations of tbe Parliameut were reviewed, and the Statement concluded as follows :— " Put iv a few last words, I would say that sober fiuance, extended settlement, and increased industries—these, with never failing confidence in our future, will carry ua prosperously on, and leave this land as a noble inheritance for our children."