The Press. THURSDAY, JUNE 10,1880.

Press, Volume XXXIII, Issue 4636, 10 June 1880, Page 2

The Press. THURSDAY, JUNE 10,1880.

We trust that the public generally will study for themselves the able Statement delivered byTttajor AtMnsen on Tuesday evening. They will then realise the fact that, notwithstanding the imposition of the property tax, enormous Customs duties, and of the new taxation now intended to be added, there will still be a deficiency at the close of the current year of about £225,000 to be carried forward, less the estimated balance of about £41,000, which the Treasurer calculates to have in hand when the year closes. In the face of such a state of things, to talk of doing away with direct taxation would be sheer nonsense. It is easy enough to pass resolutions condemning the property taxanddemandingits repeal. Butifcisquite a different matter to deal with the financial difficulties in which the colony is plunged and find a satisfactory solution. Ministers are no doubt fully aware that it is a terrible thing to have to tax the country to the extent they have proposed. But there is no alternative. Oar engagements must be met, and the public service must be carried on; "

Let us briefly state the position. When Major Atkinson made his Statement last session, he startled the House and the colony with the announcement that a very large deficiency would be shown when the financial year ended. -For saying so he was accused of having unnecessarily injured the credit of the colony by painting its position in too gloomy colours. Well, what is the

actual result? Simply this, that it turns | put. that he took far too sanguine a view 3r£ our rMo'urces. Hβ overestimated the And were it not ftjiat Ministers hare been practising every nieksonomy. in their power during the recess, the at the end of March, would have considerably exceeded a million sterling. Aβ it is, it amounted te £990,08 L This sum has been added to the permanent debt of the colony, and from the beginning of April we have resolved to live within our means. And how is it proposed to accomplish this task? In the first place the estimates which have been prepared show a very large reduction of the charges upon the consolidated fund, compared with last year, amounting in the gross to £541,000. And but for the fact that £100,000 more has to be found this year than last for interest, and £23,000 more for education, the reduction would have been still greater. This saving is of course partly due to the fact that the land fond and the charges thereon are transferred to a separate account. But even allowing for that, we learn the gratifying fact that there will be a net saving of expenditure from the consolidated fund of £341,000, "and this without impairing the usefulness of the local bodies, the efficiency of the public service, or shifting burdens which should be borne upon revenue to loan or other funds." Wβ know how easy it is to preach economy in the House or on the hustings, and how difficult it ie to put it inte practice, and Ministers are to be congratulated on their determination to perform a difficult and most disagreeable task. But a saying of £341,000 —large as it is—is not enough to restore equilibrium in our finances. Not only is it necessary to retain the taxation imposed last year: even fresh revenue must be found. And the question arose, from what source should it be taken. . There were, of course, the tea and sugar duties. We have always held the view that their reduction by the late Government was wholly uncalled for, and that the remission in a very slight degree benefited the consumer. Were the duties restored once more, the great bulk of the people, we are satisfied, wculd never know the difference. But the clearances ex bond made their reimposition for this year almost useless; and it was therefore necessary to find something else, which would produce revenue. The beer tax was fixed upon. When this impost was proposed two years ago we opposed it on several grounds, and were pleased when the Government of the day abandoned it. But the financial position of the colony has altered since then, and we cannot in these times afford to be too critical. £80,000, it is calculated, will be received from this tax during the present financial year. We think the .Gevernment have done wisely in proposing that furniture and so forth shall be exempted under the property tax. The concession will, we hope, have the effect of making the impost less objectionable in the eyes of the taxpayers, and may induce them to { submit cheerfully to a burden which the public requirements render absolutely ' necessary. We have said that the task which the Government set themselves to perform was no easy one. They had an enormous deficit staring them in the face at the close of the financial year. They saw that in spite of the taxation already imposed there would in all probability be a further deficit at the end of next March. To make it all np from new taxation would have been almost impessible. The country.-could, not .have stood it. As it is, the taxation imposed during this and last year is something enormous. The property, tax, after allowing .far the .proposed exemption of furniture, &c, will produce £260,000; the new Customs, £270;000 ; the beer duty £80,000, and the succession duties £10,000. By these means and the proposed reductions the Colonial Treasurer hopes to close the year with a balance in hand of £41,000. This credit, however, would be converted into a debit were he to make up the acceunts as has been done heretofore. . But the alteration made last session will have the effect of throwing Into the next year liabilities to the amount of £225,000; so that there will be an actual deficit on the year's transactions of about £180,000.

Wβ tare for a long time maintained that subsidies to local bodies from the consolidated fund must cease. Even when they are stopped there is still a great deficiency in the revenue. At the same time it has been felt that unless some satisfactory substitute were proposed, the Government would meet with much opposition in making this necessary reform. We must congratulate the Treasurer on the scheme of local finance which he has submitted to the House. It will relieve the consolidated fund of a most unnecessary burden, and at the same time deal very fairly with the country districts. The present restrictions upon rating are to be removed, and local bodies will have the power to levy rates to any amount they may require not exceeding two shillings in the pound. Were this all, we can well imagine the local authorities throwing back the liberal gift of the Government in their face. But the other proposal is that all Government property, including Crown lands aad— subject to an important qualification— I Native lands, are to be liable to rating. It is proposed to limit the amount of ordinary rates leviable upon Maori country lands to one-half that levied on the ordinary land of the district, 'but not exceeding 9d in the pound, and upon waste lands of the "Grown Is in the pound, upon the annual value. A Board is to be created, whose duly it shall be to pay the rates on all the waste lands of the Crown and the rates on the Maori country land, make grants in aid of the construction of main roads, &c, And the fund from which they will do this will be derived from the proceeds of landsales,affcer deducting cost of survey, &c. The rates estimated at Is in the pound would amount to £60,000 or £70,000, and the balance remaining up to £150,000 will be applicable to main roads. The Board will also have power to borrow, and lend to districts on tertain terms, money for the construction of roads, the amount to be repaid within a limited period. But as the Board will begin with no funds in hand the Treasurer proposes to advance to it a stun out of loan, so as to place it in funds for nest spring and summer. Wβ have not space in this issue to discuss the merits of this scheme at length, but as far as we can judge at present it appears to be asatisfactory eolation of a somewhat troublesome question. It has the merit of separating the general finance of the colony from, the local, and removes from the former that .great element of uncertainly—the land fund. But we must leave to another issue the further discussion of the many questions raised in Major Atkinson's Statement.