FINANCIAL STATEMENT.

Bay of Plenty Times, Volume XX, Issue 2849, 1 July 1892, Page 2

FINANCIAL STATEMENT.

The Treasurer delivered the Finanoial Statement in Committee of the House last night and addressing 1 the Chat-man, said : — Mr Thompson, lam fflad to be able to congratulate the Committee upon the result of last year's fi -cures in connection with the ordinary revenue and expenditure of the Colony. The figures express in terms wtach oannot fail to be understood, that the spending power of the people has increased and that a more widely diffused prosperity prevails than existed for a long limjpre Ivious'y. I shall allow them to tell their own story. CONSOLIDATED FUND 3. (Ordinary revenue account). Bevenue and expenditure of the year 1891-92. The estimated revenue from ordinary sources was set down in last year* statement at £3,986,500, to which had to be subsequently added £5000, tax on the totalizator receipts, and also £282,300 from debentures issued for sinking fund increases during the year. These figures give an estimated total of £4,273,801 ; the revenue actually received amounted to £4,361,087 16s 6d, or £87,286 16s 6d more than was estimated. In the tables attached hereto will be found details of the revenue under the various heads as actually received. Compared with the estimate the principal items of excess were, from Customs, £90,271; Railways, £7,990; Miscellaneous, £14,854; Property Tax, together with small excesses £4,426. On the other hand stamps produced £14,950; beer duty, £2,202 and depasturing licenses £3,004 less revenue than was estimated. OEDINAEY EXPENDITURE. Passing on to the ordinary expenditure of the year, the estimated charges, after providing for the supplementary estimates, amounted to £4,219,532, the actual expenditure was however only £4,192,947 Us 6d or £26,584, Is 6d, less, than was estimated. Full particulars connected with this expenditure will be found in the table annexed, and also the annual appropriation account. The interests and sinking fund was 'under wpent by £17,380. Subsidies to local authorities were over estimated by £17,239 and the Local Bodies not having put in their applications to the extent they did the previous year, the Ministers of Mines and .Lands, have effected a saving of £7,531 on the votes under their control, principally made in the stock branch* In the JDeience Departmeut a saving of £6,299 has been effected, of which the police contributed £2,279. Other department", including the Civil List expenditure, contribute small savings, amounting altogether to £13,036. These figures produoe a total expenditure less than the estimate of £60,485. Under other Acts there has been an excess of £23,076, arising from an under estimate of amount payable to Harbour Boards and other local authorities, of the amount of compensation payable to officers of the Civil Service fur lo?.s of office. In some classes the aunual expenditure has been exceeded, principally iv tbe Postal and Telegraph Department, which shows an excess of £7,586; some other small amounts, and services not provided for, bring the excess of expanditure over the estimate to £349,000, the result being a net saving of £26,284 13s 7d.-

L Land Fund Account. The actual revenue amounted to £103,240 1 15s, while the estimate was £02, 700, resulti> ing in an excess of £10,540 15s Bd, derived ■ from cash sales. The estimated expenditure was £118,174 aud the actual figures were " £120,031 5s 4d, or £1.847 os 4d more than the estimate. The Committee will remember !• that in last year's Financial Statement I L provided for the contemplated deficiency in the Land Fund by stating that I should transfer £9,132 from the ordinary revenue account to in. et the estimated deficit. On the passing of the supplementary estimates a slight increase to the estimated expenditure took place, raising the deficit to £23,029. Taking however the excess of receipts over the estimate, it was only found necessary, on the close of the year, to trans- ? fer £16,532 7s 2d, so as to balance the cash, 3 leaving £2,187 2s at credit, represented by I outstanding advances to imprestees. , RESULTS OF THE YEAR 1891-92. i The actual receipts, as before stated , amounted to £4.361,887 16s 6d, and the ex-' I penditure to £4,192,97 63 sd, resulting- therei fore in an excess of revenue over expenditure 1 of £168,140 10s Id; this amount has however been reduced in accordance with my promise in my last Financial Statement by applying £30,000 in aid of the construction 3 of roads anl bridges, paid out of the Public I Works fund and £16,532 7s> 2d, to cover the j over drawn cash balance of the Land Fund account and so reducing this surplu3 of the * years transactions to £i 21,608 2s lid, a resuit which cannot fail to be as gratifying to P the Committee as it is to me. But in addi--1 tion to the surp^s proper of last year, we 3 must add the surplus at the 31st March, 1891, amounting to £43,965 15d 6d, after having used £100,000 to pay off our floating debt, l as £ anticipated would be done in my state--3 ment in June last ; Putting the two amounts together, £121,638 2s lid and £43,965 15s dd, I arrive at a net surplus on the %\st March last, of £165,673 18s bd, which is sufficient I demonstration of the elasticity of our financial resoaroes, and affords ample proof of the oare exercised by my colleagues in the ad- " ministration of their Departments. If further I proof be wanting it would be found in the i statement of liabilities and of the unauthorised expenditure, both of which are the smallest received for many years past. OPENING; UP LAND, j I Many of the surveys have bean for years j in arrear of the growing demand to open sufficient country, both in the North Island ! and South Island, and the work can only ba met by providing for a large increase in staff of field surveyors, A. considerable I portion of this expenditure will take place in consequence of cuttiug up of runs in the South Island for settlement purposes. The Department has before it the responsibility ■ of either increasing the expenditure or leaving the survey work undone. This question was carefully considered by Government, and they had no hesitation in coming to the conclusion that the interests of the country required that surveys should proceed at an equal pace with the demand for settlement. ACQUISITION OF NATIVE LANDS. The time has I think arrived when the Native Lands which are rapidly increasing i in value from the progress of colonisation going on around should pay the same tax as other private lands are called upon to contribute to the Treasury and to Local Bodies, or a certain proportion of them should psss to the hands of Government at a fair prioe, and be used for purposes of settlement. The Crown Linds available for settlement are rapidly becoming exhausted, and the question becomes pressing what ia to be done with the comparatively large tracts of Native Lands remaining in a state of nature, barring much of the progress, and contributing nothing in return "for the b&nefits conferred by the industry of the colonising race. What the Government may do with the least opposition and in the shortest time is to acquire some of this tenitory by purchase. The Native owners have Dot beon unwilling to sell, aud larger areas might hava been obtained if funds bad been available. In no case should owners be deprived of their land so as to leave them destitute, but subject to this important reservation the Natives might be asked to hand over for a price pertain blocks to the Crown. If this be done, and work of settlement allowed to proceed in the native territory, the rating- of native lands might be deferred. It is accordingly proposed to submit to Parliament for consideration a measure

ctended to provide for the a; quisition of i native lauds > o an extent not exoeeluig an i expenditure cf £50,000 a year, on as 'lf ict- i in? principle, vrhieh will permit one-htlf uf the purchase money to be invented as an endowment, bearing interest at 4 par cent far the benefit of the owners; thus the tribal owners will in the first place b 3 provided with ■sufficient reserves to enable them to protect aud maintain their national independence, seouro from the possibility of wan l^ aud in the second place every seller will hxv^ had secured to hioi an annuity for life transmutable to hia descendants. Both the ooloni4 aud the nntive may combine to carry o it a scheme whioh will secure on one han 1 the settlement of the Colony, and on the other permanent welfare of the Miuri people, and whioh will have the effect of gradually bringing- both races under one law. ACQtnSITION OP PRIVATE I.AND 3, The Government believe it to be a matter of first importance that the work of colon iaashould be renewed in many parts of the Colony where the landed monopoly prevents the increase of population, or where the cousolidation of estates drives people into towns or out of the Colony. A Bill is being prepared to enable land to be purchased, subject to such checks and safeguards as will absolutely prevent the possibility of the system being abused, for the present measure need not provide for the compulsory taking of land. This may become neoessary in future, but it is believed that the voluntary sale will provide sufficient land to enable the system of recolonisation to be fairly tried before another step has to be taken. The argument generally urged against the purchase of private land for settlement is that while there is Crown land still open for sale in any part of the oolony it is not a wise polioy to make the purchase of private j lands, and that it is impossible to provide protective oheck sufficient to prevent abuse arising from the purchase of private lands. To the first contention it may be replied i that if land is not available for settlement in Canterbury or Otago the unplaoed population may prefer an Australian Colony to another part of New Zealand : while with regard to a second objection the settlement of land by a numerous population, paying a 5 per cent rent on the price is a complete answer. It is also beyoud dispute that the cultivation of small areas enables higher rent to be paid than the cultivation of large ones. In this instance the State as colonisers seek no profit save the indirect profit and the national advantage of a thrifty and industrious people contributing thuir fair share to the general revenue of the Cjlony. The Government looking to the absolute requirement of the South Island attaoh the greatest importance to the measure, and hope Parliament will determine to give it the force of law in the present session, LAND AND INCOME TAX. The Committee will no doubt be glad to learn some approximate results of the assessment of land and income tax. Enough information has been gained to indicate that it is not probable that the estimates of £40,000 from business and £16,900 from emolument and employment (founded on 6d up to £1000, and Is above this amount with an exemption of £500) will be reached. Ido not anticipate that the result will be seriously below the estimate. The estimate of £47,000 for Companies will probably be somewhat exceeded, but the exaot figures are not yet at my command, though I am able to say it is certain that estimate will be reached. The graduated land tax will beset down as about equalling the estimate, and may be taken as producing £10,000, possibly more, for here again exact figures are not obtainable in consequence of reductions made by the Board of Review not having yet been taken into account. The ordinary tax on land that is on mortgage, and on landless improvements, to the value of £30,000 for each owner, and certain deductions by way of exception was the part of the new soheme of taxation that was most severely attacked by the Opposition of Government. It was alleged over and over again that calculations must have been made on a wrong basis. Elaborate statements were prepared to prove that I had been over sanguine, if not reckless, and I understand that it has been by many looked on as certain that I Bhould have announce a serious deficit in this souroe of revenue. I was aware that assessment of improvements would be a difficult process and that owners and assessors would frequently differ widely in their calculations as to the value of improvements. I have pleasure in stating that information had been most readily accorded by a' great majority of owners, and they have assisted the officers of the Department in arriving at the value of land and improvements thereon. I am able to state with confidence that the assessment is the best and most sure that has been made in the Colony, and I am happy to inform Hon Members the result has been so far satisfactory, and that there will be a surplus under this head which will secure a small excess on the whole soheme. When further information is obt lined I shall submit a scheme for amending the act for the consideration of Parliament.

BUBEAU OF INDCJSTBY AND LABOT7B, The Bureau of Industry and -Labour which was formed in June last year for the purpose of regulating tie movements of labour has fully answered the anticipations of Government., The number of persons who found work up to the beginning of June (about twelve months) were no less than 2,974, of whom 2,000 went to private work and 974 to public wo. La. The number of agents, mainly appointed from among police, is 289. Experience has shewn that with a comparatively few exoep.ioDs those who have sought assistance through the Department have been anxious to obtain work, and have readily turned their hands to any clhss of labour open to them. The total cost of th r Dopartment has been £2,318, out of whioh £1700 was paid for railway fares, salaries only amounting to £339. Deducting the amount paid to railways and some refunds received from men who have been found work, the netfc cost of the Bureau for the year's operations is £990. The working classes have recognised the value of the De° partrnent in preventing a depreciation of wj.geß through congastion of Übour in cities and oertain districts, and have cordially co-operatel witli Government in making the Bureau a practical success, It is the intention of Government to establish in connection with the department one or two state farms in different parts of the Colony, where unemployed men, not fitted for arduous employment, may find suitable occupation. These farm 3it is believed can be made self-sup-porting, and will find employment for a class of industrious people who now find it a difficulty to hold their own physically in the battle of life. Government have attached so much importance to the work which is before the Department that they, have constituted a portfolio of labour, my colleague the Minister of Education, who has administered the Bureau from the beginning, being the first Minister of Labour and Agriculture (xoyernment have proceeded in accordance with the expressed intention of my colWue the Minister of Lands last session to organise a Department of Agriculture, and have appointed as Secretary, the officer who has performed the duties so satisfactorily as Chief Inspector of Stock, and who is particularly qualified to be the permanent head of the Department It will be the duty of this officer to collect and distribute information on subjects connected with agriculture aidlug settlers by means of lectures' aud pamphlets, and generally to study and promote their welfare. <

It is satisfactory now that there- is a lar ff e increase m the export of dairy produce during the year, and from the reports received from Home the prospects for this year are very good, Complaints have been made in a few instance* of false packing aad tamding-, and it is the intention of Gorern-

raont to introduce a bill dealing with this bid other matters appertaining to this important industry, A fruit expert was appointed last year, and although only a short time in office he a visited and ieotnred in some of the fruit growing centres of tha North Inland, Marlboroujrh an i Nelson. Circulars have been seat our. ieora time to time bearing on this subject, inviting information as to the different nnthol* employed in combating with the diff jrent pasts aff Jc tiug this industry. A srreat mmy replies have been received, and advice givaa in return. The Government are now considering the question of enlarging the usefulness of the experimental farm, and an endeavour will be made to establish several of these useful aids to settlers in determining what trees and fruits are best to grow. BORROWING. The question m*y ba asked can the Colony afford to bring to a termination the construction of roads and bridges, which alone enables settlement to proceed on the puolic lands, or would it be a wise polioy to hang up many of those lines of railway that are now approaching a point to pay. That we should sit down content with such partial results would surely be considered the quintessence of folly. It is truo our debt is great and the population to bear the burden comparatively small ; we have marched for twenty years at a furious pace too severe to last, and we have piled up large obligations which should make sane men pause, but we find nothing in what we have done to induce us to abate one jot of hope, though we see much to make us reflect on the course we have taken, and to ask ourselves whether it is not possible to shape our destiny by different means. The possible only, it must not be forgotten, is within our reach, and after all what we may attempt is circumscribed within narrow limits. I have propounded in other places a finanoial polioy of self-reliance, and shown the necessity for weaning this Colony from a servile dependence on foreign dealers in money. I do not think it would be wise even were it possible to attempt to raise* another loan in the English money market At the present time ouc securities areas high -as those of any Australian Colony, and this standard his been reached probably because we have boldly announced thepolicy of not offering our friends any more paper. For a period, we propose therefore to keep faith with this announcement, aad to refrain from plaoing any loan on the English market. The same objeotion however that applies to foreign loans does not apply to borrowing within the Colony, and I believe it possible to plaoe a moderate loan at % reasonable rate of interest, extending ov& some time, without any difficulty, ft m *y be said thar. the securities would find their way to England, or that the absorption of : so much money would tend to make it dear in the Oolony. These objections are not very formidable, money will flow to wherr desirable investments are to be found, aad if . the industries of a oountry are in a prosperous ooaJition they will not be negleoted for the want of means for their further development, I have assumed that the people of the Oolony have not come to a determination that all public Works shall oease from this time forth and that stagnation shall be the order of the day, or that Parliament shall take no further thought of the demands of the colonising, spirit. If my interpretation of colonial patriotism and aspiratious is correct wo must continue to open up lands for settlement by mean's of money spent on roads and bridges, we must still continue slowly, it may bo, to take our railways forward to those points where they will serve the purpose of tapping districts of high producing capacity. The Government after much thoughtful deliberation believe this to be the mind of the oountry at the present time,. and the only question that remains therefore is how are the ways and means to ba provided. With equal debiberation the Government have also come to the conclusion that a loan can be avoided by deducting sufficient out of the surplus revenue of the consolidate! fund for the year to carry on public works at a rate that will satisfy the miroh of progress. The sumof £20,000 will accordingly be transferred from the surplus revenue to the Public Works Fund. Of course this limit means a reduced rate of expenditure. It will impose great care, moderation, and selfdenial on Hon. members ; but by way of compensation, if this ba noaded, it also means that for the first time we have determined on a polinv of sslf- reliance, the only policy I firmly >eli ere to make this a great country. Whether the policy here inaugurated can be continued will depandoa circumstances which may bo beyond the oontroi of Governments or Parliaments, but we confidently ask for it that sympathy and support whion it has a right to claim from every man who wishes well to New Zealand. EOADS AND BBIDGE3. I bring together the various amounts of of money, under different heads, paid last year for the openinar up of the Country by means of roads and bridges, apart from railways, the Committee will understand the heavy obligations resting upou the Cjlony and the great necessity for seeing the expenditure is made only on the most reproductive works. The expenditure under the several heads was as follows : — on various roads, £30,698 Is 9d; on roads to ope a up lands for sale, £27,992 15s 1 Id ; lent to Iooa! Bodies under the Act, £89,403; subsidies. £47,760 15s 3d ; thirds and fourths from deferred payment and perpetuil lease sales paid over to Local Bodies, £34,180 4a 4d; roads to give access to. lands adjacent to North Island Main Trunk Railway, £30,220 0s Id; total, £260,259 17* 4d, Here is a total outlay of £260.259 17s 4d, provided by Government for roads and bridges whioh seem to have become necessary to carry on the colonisation or settlement ef the Country, It is probable that so large an expenditure will be found to exceed our means, and it will have to be curtailed, but the work of placing people on Crown lands cannot stop, and money will have to be provided to open up new country. I have shown how we propoie to achieve the object in the present year, and I have only to repeat what has already been urged, that some self denial on the part of districts will have to be exercised while the duty will be cast on the settler** of assisting themselves to the utmost of their -ability. The Government will do their part, but their power is necesstrily limited, and all must endeavour to bring about those results on which the common prosperity do* pends. BUMMING UP. The great Departments of the Government have been administered with vigor and prudence, the lands have baen disposed of for the benefit of tho people and not in the interest of the speculators, and checks, as far as the law allowed, have been placed on monopoly. The difficult and delicate t isk of converting some of our loans his baea satisfactorily performed through the agency of the Bank of England. Coming to the current year, proposals are submitted for the acquisition of Native and private hn«la for the purpose of settlement, a systea ot pensions and insurance for the civil sscvio* is proposed, which entails neither expense uor liability to the Colony yet is sufficient to provide an independence in old age or material assistance to the family in case of death ; public works have been provided for out of surplus revenue after every obligatioa has been discharged. The people are beginning- to recognise that New Zealand affords as much chance of employment within its own shores as any other country, and loss of population through greater attractions in the neighbouring colonies is in oil probability at an end. There is, however, still much to ba done fe promote the comfort and happiness of our fellow colonists, for whonTaa legislator W9 are the trustees,