Financial Statement.

Bay of Plenty Times, Volume XLI, Issue 5995, 8 August 1913, Page 5

Financial Statement.

{SUBSTANTIAL SURPLUS OF £709,508.

Loan of £1,750.000 Required This Year. £8,000,000 to be Found Within Eighteen Months in Addition to Money for Ordinary Requirements.

VIRTUE OF SELF-RELIANCE,

The annual statement showing the financial position of the Dominion as at the 3Jst March, 1913, was delivered by the Miuis ter of Finance, the Hon. James Allen, in the House of Representatives on Wednesday night. REVENUE. 'flic revenue lor the war amounted to £11,731,1)22," being £7SS,(Us- i n excess of the estimate. The following art* the details ot the actual revenue for 1012-13:- - Customs 3,407,538 Railways 3.908,350 btampg * 1.052,347 t st and Tel. 1,107,97 7 Land-tax 7__B,G3<? Income-tax • ._uv.99.-_ Beer Duty 124,223 Registration, etc. 03.930 'Marine • 52,70n Miscellaneous . 301,339 Tenitorial Revenue 254 509 ' i{i- E»dt. v 59,114 Tola) 11,704,022 The revenue for 1912-13, exceeded that for 191 1-12 by £701,478. EXPKNDITURE. 'Ihe expenditure for the year amounted to £11,052.038, being, £1-10,900 less than the estimate J and £7-11,070 more than the ac- . tual expenditure for the previous year. Details of the expenditure for 1912-13 are as fol- ! lows :—- Permanent Appropriations- £ Civil List 33,493 Interest and Sinking Fund ,2,717,013 ! Under Special Acts 574,441 Subsidies paid t; Local ' ! Author! ies ] 10,528 Tenitorial Revenue 413117 r-nclown.tT.t3 lyu.Vl? Cild-age Pensions 397,037 Widows' Pen. ions 22,1 US 4,052,185 Annual Appropriations- ,-S Legislative Departmc v 35,517 Department of Finance si>.o2u Post ar.d Telegraph Department 1,000,772 Working Railways 2 817,141 Public- Buildings; D> mainvOte. -■ -. r' ■■'*•■ 74 7,703 Native Department 23.C0S Justice. Department 404,310 Minti* Department 2'J;d\S D-pßrlnnnt.of Internal A .Fairs 111.1.599 Defence Department 505.267 Custom-), Marine and Harbours, etc. 134,020 Department of Labour' 20,177 | Department of Lands ard Survey 231,240 . Depar'numt of Agrioul- ] ture, Industrie?, and Commerce 178,904 Educational Department 1,084,042 Services not provi Jed for 2,507 7,029,853 Total 11,082,03S TREASURY .BILLS. During the year Treasury bills ' to the amount of £775,000 were issued and were repaid. It is satisfactory to note that on the 31st March, 1913, none were outstanding. SUMMARY. The .results'of the year's operations show an excess of receipts over expenditure of £052,232. The balance brought forward on Ist April, 1912, was £807,270, giving a total of £1,459,508. Of "" this sum £750,090 was transferred to the Public Works Fund, leaving a balance at 31st March, 1913, of £709,508. For the purposes of comparison the net liabilities of- the Dominion at 30th dune, 1912. are taken at £3,1-12,920 as against £1.901,011 at, 31 st March-. .1913.

PUBLIC DEBT. The gross public debt at the end of the tin and a I year amounted to .t'.)0,0()0,7i).., Of this amount approximately £55,001 bOOO has been utilised m such works as construction oi railways, telegraphs, and telephones ; advances to settlers, workers, and local authorities ; purchase of land for settlement purposes, etc.. which art. dir^hly reproductive investments. /The net indebtedness i^>i the Dominion at 31st March. 1013. was £57,157,121 : the total accrued sinking funds amounting to £2,uO:Uii2. The public debt increased by £5,700,550 during the year. FINANCE. It is propased to amend the Public Revenues Act in order that Treasury bills may be is sued in London. This will facilitate the raising of temporary loans for the purposes of the Consolidated Fund in anticipation of revenue. The cost of raising the £3,----0(0,0* 0 hum in London will he laid before honourable members as soon as the final accounts are received from the . Hi'jh Commissioner. The proceeds of this loan have been to a very large extent devoted to the current needs of the Dominion, whereas circumstances made it imperative that the 'previous loan | should be largely utilised lor /purpose of redeeming existing j loans then maturing, ov repay- ' ing advances. the recent loan <>,' £3,000,000 ha* been allocated as follows :-— State .Coal-mini's Account £50,----100, Public Works Fund .11,-----U.S.2UO, Advances to Settlers X-iOIU'OO, Advances to Workers £150,000, Lands for Settlements .£300,000. Local Authorities £4(10.000, Redemption of Debentures £151,800. The loans falling, due during the next seven vea'rs are as follows : 1014. £298,800: 19J5. £9,830,865 ; 191(5. £1,259,702 ; 1017. £LHSS.-210 ; 10JS. £3.----391,550 ; 1019, £1,100,815 ; 10.20. £()37.280. Total, .£21,----800,258. —Post Ollice Sayings-Bank.---With a view of bringing the rates of interest payable to depositors in the Post' Office Sav-ings-bank more into line with the current market rates, it was decided to increase the amount of interest of depositors from 34 to 3: 1 -- per cent, from the Ist May, 1913, in respect of sums not exceeding £300. In consequence of this increased rate payable to depositors by the Post Office it became necessary for the Treasury to increase the late payable in respect of debentures issued to the Post Office for the investment of its funds. The rate payable by the Treasury- was accord ingly raised from .'..? per cent, to 1 per cent, from the lith May, 1913. —Public Service Reform.— The Commissioner and Assistant Commissioners appointed under the Public Service Act, 1912, commenced duty ai the beginning of the year, and have, since been engaged in investigating the condition of-the Public Service. One of the first duties of the Commissioner was to classify the Sen'ice, and it is hoped

that the classification will be ready for publication at m.

early date. As a result of the work already done by the Commissioners, it is evident that considerable economies can be effected in many .Department**, while at the same tune eftieieaey can be increased. A preliminary report by the Commissioner will be presented to Parliament in .due course. ---Public Service Superammation Fund. — * . The income d-iriny; the year ended December 31, 1.212, amounted to £14.6,990, including £23,000 annual subsidy from the Government. The amount contributed by members of the fund durintr the year was £107,409, the' balance,of the income being made up of interest;, £10/258, and lines, £323. The total outgo for the year was £65,1.09. The total value of the fund at the end \ oi the year -was £42*3,550, an increase of £81.820 on the total at the close of the year 191.1. An amendment ot the law under which the fund is administered was passed during last session, abolishing the provision for reduction or postponement of allowances to widows and children in cases where compensation is paid under the .Workers'' Compensation Act for the death of a contributor by accident. At the same time parliamentary sanction was given to an increase- to the annual subsidy from £23,000 to £-18,000. —Teachers' Superam.ua' ion Fund.— The income during the year ended December 31, 1912, was £55,265, made up as follows: Contributions *of members, £40,T30; interest on outstanding contributions, £23; interest from Public Tru.tee, £8111; and Covernm:nt subsidy, £7000. The expenditure for the year was £26,317. —Railways Superannuate. Fund.— As promised in last yenr'a Badgct, the Government ia obtaining a»i actuarial report on the condition of the* -Railways Superannuation Fund. The report is not yet to hand, but on its receipt careful consideration will be given thia fund so as to place it, if need be, on a round basis. --State Advances Office.--The amounts lent during the year were as follov/s ---Settlers, including loans from Public Debt Sinking Fun* 4, £937,435; worker. £149.260; local authoritie.% £547,295. The report and b-lance sheet cf the Advances to Settlers .-.ranch shows a profit for the year of £73.864, and that of the Advances to Workers' Bxanch a profit of £11,203. The 3. profits yre mor3 than absorbed by the sinking-fund contribution?. The Local Authorities \ branch shows a loss of £635, which i^ j very small compared with the losses , of the previous year*. Previous to , the date when the present Government < took office the Advances Board fotnd f i it impossible, owing to financial :trin- t gen«.y, to entertain applications for f loans to repay existing mortgage?. t Th 3 Board aho then fount it neces- £ «ary, for the fame reason, to limit < the loans under ths Advances to Set tiers Bra rch to sums not exceeding £500. Recently the Board has teen - able to relax this stringency some- t what, and loans are now bing granted r for the purpose of rcpafing existing {j mortgases in the ease of Crown h Iwaeholders, and the limit of loam to settler.? has been extended from \ £SUO to £750. In November, 1912, ~ it was also found necessary te limit • Ihe loans granted under the Advances to Workers' Branch to sums not exceeding £300. In May last this limit was ri.hej to £400. — Local Bodies' Loans Act.— n An a.rrnding.and consolidating Bill y relating to the Raising of loans by b local brdies will be introduced. The ti

measure will contain provisions which will remove certain restrictions now imposed on local authorities in connection with raising loan?. It will ako prov.de for local authorities borrowfrg moneys under the guarantee of the Government. — Local (_overnn.e*.t Reform.— It is doubtful if Parliament will have time this fession to adequately consider this important subject. It is intended, however, that proposals dealing with local government reform will, if possible, be circulate*! this session for the consid.ration of member, of Parliament and local bodies.

— post and Telegraph DepartT.ent.-~-The business of the Post ard Telegraph Department continues to improve. The receipts during the yesr amounted to £1,107,977, an increase of _W£,169 over the previou. year. The 4 expenditure amounted to £1,006,----772, an cxcc.s of £ob'7i beyond the amount voted, ard £50,2i0 over the previous year. The Savings-bank deposits amour, ted to a total of £11,720,18.1, a higher amount than ever previously received in one year. The deposits were in excels of withdrawals, and the amount standing at credit of depositors on December, 01, KU2, was ■MtvJ'oO.2s7, an increase of £757,070 over the amount at credit on the corresponding date in 1911, The motcy-order and postal-note hupin«Fs also shows a very considerable increase, the. orders and notes issued exceeding in value those of the | previous year by well over half a million sterling. The net expenditure out of Public Works Fund fcr telegraph extension was £251,375. —Railways.— Mr Hi ley, late of the North-eastern and Great Northern Uailways oT Groat Urhain, la^ been Appointed Mi-n^ct -it the Mew jjea-

land railways. He will take up hip duties on his arrival in New Zealand. The interest earned by the New Zealard railways on the cost of con struction during the year erded Msrch 31, 1913, is the second hi-hest on record, namely, £1 Os 9d per cent, and that notwithstanding large increases in the wages of the stall. ~,:■'.' - Lard and Income Tax. - The net receipts for Ihe past year in this Department were:" Land tax, £725,636: Income tax, £462,994--total, £1,-91,630. The land tax receipts f..r the financial year 1912-1* ss rompared with the year 1911-12 are: Receipts, 1912----13, £728,636; receipts, 1911-12, £647,016—an increase of £81,620. During the last four yvars t^*e net assessed taxable value of land and mortgages increaied b_y £24,477.3.99, totalling for the past year £13.675,----949. The yield of land tax was £725,636, an increase of £123,736 during the same period, and the number of taxpayers was 38,232, an increase cf 7377.* The income tax receipts for-1912-13 as compare! with 1911-12 were : 1912----13, £462,994; 1911-12, £445,935-an increaae of £14,059. No alteration was made in the rites of tax charged, so the abeve^fjaures are-an indication of the increased prosperity of the Dominion. It is intended during the present session to tubmit a proposal for graduating the income tax on a more equitable basia than the present t-y*-tern. Legislation has already been introduced with the object of granting additional exemption from income tax to parents who have children under sixteen years of age dependent upon tbem. -Agriculture. — The rural industries, and the preparation^!' their products for export, are among the most important factcrs in the material prosperity of New Zealand. It is consequently a matter of satisfaction, that the past year has been ore of prosperity for these industries. The wool-clip has been go?d; dairying has continued to expand, especially in the manufacture of cheese; commercial fruitgrowing is now beginning to take ita true place as ft means of utilising much land that is of comparatively small value for other purposes; the hemp industry ha?, owing largely to a period of high prices, shown a remarkable revival; and poultry-raising nnd beekeeping are exhibiting signs of a forward movement. The Government ha 3 under consideration a proposal tointrocJu-e legislation this session which will enable financial assistance to be granted to associations of fruitgrowers for the purpose of erecting canning factories an 1 providing cold storage. Agricultural College* and Experimental Farms. - It has been decided that the question of establishing an agricultural college and experimental.farm* sin 11 be referred to the proposed Advisory Board of Agriculture as toon ai the Board is established, and it is hopeJ that it-i recommendations *ill be available ir, [time to permit of provision being J made in the supplementary e.tinntes for giving effect to the proposals. - Industrial Matter*. - No industrial troubles of any magnitude have orison r»ince the miners' strikes at Waihi land Reefton. It is believed that during the pant year there has been engendered a more earnest desire to, find tome method by which industrial di*putea may be equitably settled. With this object in view it \i proposed to effect a number of amendments in the machinery provisions of the Conciliation and Arbitration Act, and to embody these amendrments in a'consolidating measure. —Workers' Dwellings. — There ha 9 been -considerable activity in the purchase of f uitable lard for the erection of workers' dwellings. Land has been purchased and set apart during the pa«t year, and eighty-o.*e have be;n erected, while arrangements are well advanced for tho erection of (ighty four additional dwelling. A total of 235 acres is nov? available for the purposes of this Act and applications for the erection of dwellings thereon are being dealt with as rapidly as poiaiblfi. It is also hoped shortly to complete the necessary negotiations on the lines Indicated Ja«t ye<_r for the purchase of a number of blocks of suitable land in the country districts for agricultural labour-c-s' dwellings. Legislation will be introduced this year extending the powcrj of local bodies in the direction of enabling th-em to acquire land and erect homes for workers. — Pensions.— In accordance with the proposal foreshadowed in the Financial Statement of last year, the* Tensions Department has been recreated and placed under the control'of a Commissioner, who administers eld ag<', widows', and military pensions. The gross amount paid hy way of pensions under these Act 9 throughout the Dominion during the year ended March'3.l, 1913, was as follows:—Old age pensions, £415.749; widows' pensions, £22,113; military pensions, £3678. — Reciprocal Trade.— With a view to stimulating trade between Australia and New Zealand, the Minister of Customs recently visited Australia and successfully negotiated a reciprocal trade treaty with the Government of tfce Commonwealth cf Australia. Since this treaty was concluded, the position of political parties in the Commonwealth had materially changed, and it is not possible for the New Zealand Government to take any further action in the matter until the policy of the new Commonwealth Administration in reference thereto js disclosed. For the reason just given th; o.ual practice of bringing down the proposed rew Custom! tariff witft the Financial Statement will not te followed upon this occasion. — Mining.— Owing to labour troubles which-exist-ed for many months at Waihi and Reefton, and which stopped the mines, the output of gold for the past year does not compare favourably with that of the previous year; but, despite these difficulties it is encouraging to note that the output arm'tmtcU to £-5,030.51 P., an against

i £3,492,362 for J DM-12. and there i «cml to be little r'oubt that «he <m«- ---■ put for the current year will be quite 1 up to the average. The C3jj|-n ini.hg industry continues to prosper. The output of coal for * « 1912-13 amounted to 2,177,015 ton?, as •' against 2,066,073 tons in 11)11-12—an t increa c of Jl 1,542 tons. —The Iron end Steel Indu try.--During last session certain proposalrelative to establishing the iron and steel iniu try in this Dominion were made by the Ethelburga Syndicate. On the motion tf the Prime Minister a special Select Committee wa* appointed to ; go into the matter, an* 4, after an exhaustive inquiry, the Coo:tnittee reported that it could not re.ommciid the acceptance of the propo als in their then form. ' Curing my recent vi-it to Kr.gl-nd the rratter was brought before me figain, but on an entirely new ha-is. The Government has decid tl ti mlimit the various proposals to a Committee of experts for examination arid ; report. -Public Health. - The Native medical service is being reorganised wi h a Tiew to obtain the co-operation of Hospital Boa-ds in this most important branch of tbePublic Health service. The appointment of nurses for special work among the Na- ! tivea has been fruitful of such good results that further appointments are contemplated. The ever increasing demand.3 tor accommodation in'onr public ho?pital = is a matter for serious consideration, and makes it clear that considerable expenditure will be necessary during the next and succeeding years on hospital buildings. It m proposed to continue the practice of subsidi ing country medical and nursing associations. —Crown Land*. — The driers of the Lands and Survey Department are endeavouring to give efFect to the desire of the Government that all available lands be placed on the market at as early a date as possible. During the past year the area of Crown land made available for gettlerner.t totalled 337.500 acres, in 2230 sub-divisions or allotments. Since the close of tbe year there habeen sdvertia-Ed for selection a further area of 141,500 acres, in 540 allotments. A Land Bill will be introduced during the present session, and Parliament will be Esked to agree to further extension of the freefcol.l policy which was spproved by the country at the last general election, and which undoubtedly makes for the confidence of tbe settlers and -the prosperity of th* Dominion. The area of national endowment land occupied under lease or licerse nt the end of the jear was 6,321,608 acre?, at an annual rental of.-£59.,559. The total area at present^hWithin the endowment is 8,551,250 acres.^-he unlet area will be prepared fat settlement as early aa possible. The total area of Crown lands of all classes. held,under lea.c or license at the close of the past financial year was 19,51*1,391 acres held by 29,532 selectors, and paying an annual rental cf £098,831. la addition to this, educational and other endowment land*i administered by the Land/ and Survey Department represent a further area of 1,175,661 acres, divided into 4280 holdings, paying an annual rental of £87,460. The gross land revenue received during the past financial ye*r was £912,029.

r -Native Land Settlement.--2 r Ihe settlement of native land during V the past year has been up to the aver- ' age. Since the coming into operation of the Act of 1909 the average ol 1 native land alienated, either by pur | ' cliass or lease, has been about 500,000 acres v year. A bill extensively smend ng the 1909 Act, in the direction of giving increased fanltiies for settlement of the remaining surplus native lands, will be introduced short 1 ly. The question of fating native " lands is under consideration, and a bill is in preparation which will k4f make ttu collection of rates by the luc.il bodies easier. --Railway Construction.- - In the Public Work 9 Statement of last year it was suggested that whe.ever branch lines of railway were deemed to be necessary, a lighter and cheaper fo*m of construction; should cc adopted. In pursuance of tl.ii view several new branch linewere authorised during last ses ion. A? it is imjio-Sible f,r the Dominioi to borrow in any one year a sum sufficient to provide for all these branch lines as well as for the construction of tbe main Hoe., it-is the intention of the Governmenht to permit private enterprise;to undertake such wcrk, subject to conditions which will carefully safeguard the public interest. Legislation giving effect ta this proposal will be introduced this session. —Kords and Bridges. The total expenditure under this heading for the last financial year, including the national endowment and land fcr settlements roads, amounted to £429,253. -Defence. — Owing to the amendment made fast year in tho. defence legislation, detention ia military custody has been substituted for imprisonment. The Act of last year needs further amendment, and the Government has submitted this question with others affecting the national defence scheme to a joint Committee of both Houses cf. tinLegislature fcr consideration ard report. The second meeting uf the Committee of Imperial Defence, which I had tbe privilege to attecd, was held seven days before my leaving London. Prior to this, several conferences hsd ■' taken place with the Ada-iralty. the results of which were considered at the above-mentioned meeting of the Committee of Imperial Defence. Some important details remained to j be considered, and as s >un as these I are settled, the Government- will s^ulh mit to Parliament a policy which will ' recognise to the full the necessity for one control fcr Imperial parposcs, • and give the people of this Dominion i a more definite interest in defer.ee, matter?. The actual co^t of the battleship "New Zealand" presented to the Imperial INavy amounted to £1,701,000, g «md the final payment has been made in London. Tbe sinking fund will be. sufficient to r^pvy the loan in about f tfeveuleet. years. 1

—Ed .cation Expenditure.— The increase in the amount to be povided for education this year, a* compared with last year's » xpenditure, is, tne Minister stat ?, tlue alinor-t entirely t<3 the increa.td atter.dan c at the ordi a y public scho-J-y at the manual and technical schools and 'lasfe*, aud at high 9< hcols, ard also to the additional r umber of n w school buildings wh eh have to be provided for and maintained. The Minister does not think it will be.possible to bring down thia stssio*. a scheme for the improvement of the staffs and sal.riei of teachers in fubHe schools, but propo.fih dealing with these two que:tions will be submitted to Parliament next year. Meanwhile, to give some increase of salary where it is most ne d d, the Government intend', as from January 1 next, to raise the amount of the yearly increments of salary ii the s-eyeral grades* from £5 to £10. The cost of tbn for the first year w.li probably be about £12,000. in addition, it ia propo ed to make better provision for tre pay of soma of the staff of the training colleges and to increase the talaries of the secondary assistants in district high schools. —Immigration.— Before the present Government aisumed offi.e it had tecome obvious that the methods adopted to pro cure it migrants to supply the rie mand for dome tic tervar.ts in, both town and country, and for farm labourers in the country distri ts, were inadequate, and that efforts rn'ist b* made to direct the stream- of those classes of immigrants to New Zealacd in greater numbers. Ihe control cf immigration has been placed und.r a distinct Department of la migration. The work of finding emigrant**, and testing their capacity, health, and charade*", mi s*. necessarily be carried out by officers in England, and during the past year correspondence on the subject between the Government and tie High Commissioner has resulted in modifications of the conditions which formerly obtaine:'. The requirement of one year's actual service as a domestic servant has been altered so tbat women who have,' bad practical domestic experience in J' their own homes may be accept d. Ihrugh their services have rot been for wage. Effort* have been made lo arrange i for a supply of boys from country districts in England, to be employed by farmers in New Zealand, upon erms ' to be approved by the Government on ! eomewhat similar lines to those previously arranged with Mr Sedgwick. < — Dank of New Zealand. — ] The o~e million loan guaranteed by ' the Government of New Zealand on i account of the Bank of New Zealand '

becomes due in 1.9.14. The directors of > the bank have »«lvir«d the. •C-ovirn-c I ir.ent tbat it would be in the inter** t of the bank to renew this loan, '. that legislation should be passed this L session 10 pern it of an increase in the . capital of the bank. The Government I has decided that legislation will be ) introduced this ses-ion which it is believe 1 will be satisfactory to Parl.ament. t> the direct ri and rharcholdcr?, a- d in the interest-, cf the people I of the Dominion. ' —Estimates cf Revenue, and Expenditure, 1913-14 -- i It is estimated that the revenue for j I 11)13-14 will be £11,789,602, irade up as fo lows: £ 'Customs - 3,250,000 * Railways 4,200,000 Stamps 1,000,000 * Post and Telegraph . 1,230,000 La d tax 750,000 Income t x 170,000 Beer duty 124.000 Registration 92,000 Marine 51,200 ' Miscellaneous 360,000 Territ>rial revenue 190.000 National endowment revenue 72,402 11,789,602 The balance in t ve Consol.dated Fund at March 31, 1913, was £709,508. It is proprsed to transfer £675,000 to the Public Work 3 Fund ard £22,557 to the Advances to Local Authorities Branch. The estiraat'vd expenditure is £11r€79,674, and the balance avail able for the Supplementary Estimates U £121,879. — Loan for Public Work?. The Public Works Fund will require to be repl ni-hed during the current financial year, and I. propose to afck j Parliament to authorise a Joan of £1,750,000 to be raised in London. During the next 18 month?, in j addition to the ordinary requirements for the year, short-dated loars amounting to ever £8,000,000 must be repaid, and to do this an equivalent amount will have to be bortcwed in London. Jt seems to me that both sidea of the II use should assist in inculcating into the minds rf our people the I virtue of self-reliance. Ihe Governj ment has detirmined on a policy of (progressive development of Ihe Dominion's resources, and will not fail to make prevision for the necessities of settlers, workers,- local authorities, and public works generally; but even London, with the increasingly htavy demands for loans from ?o m.ny would-be borrower?, mu>t not be looked upon as a source of fupply; without limitations, and too great a reliance on London may prove unsatisfactory. '