The Press. THURSDAY, MAY 25, 1905. ROBBING PETER TO PAY PAUL.

Press, Volume LXII, Issue 12203, 25 May 1905, Page 6

The Press. THURSDAY, MAY 25, 1905. ROBBING PETER TO PAY PAUL.

In his speech at Dun«din last night, the Premier made an important statement regarding the finances of the colony. It shows that onr revenue is keeping np in a remarkable manner, and that the expenditure is increasing at a corresponding rate. If we were satisfied that the Government kept their accounts on the same principle that would be adopted by a eound commercial concern, we should regard thp surplus shown by Mr Seddon as very gratifying, but, unfortunately, it is a fact which no one who has studied the accounts will dispute, that the glowing balance-sheet which Mr Seddon has set out is a delusive balance-sheet, which, if unexplained, is likely seriously to mislead the public.

The total receipts for last year, it appears, amounted to £7,347,197, of which £63,200 was not ordinary revenue, bub consisted of sinking fund accretions. The expenditure amounted to £6,635,902, leaving an excess of revenue over expenditure amounting to £711,295. Tlie balanoe brought forward from last year was £649,741, of which £600,000 was transferred to the Publio Works Fund. This left a net balance of £49,741, which, added to the £711,295 excess of revenue over expenditure for the year, makes up Mr Seddon's surplus of £761,036. Now why do we say that the surplus is unreal P It is because, while the revenue side of the balance-sheet, is inflated to the fullest extent, the expenditure is not honestly stated in the Government's method of keeping the accounts. As Mr Massey and Mr Allen have recently pointed out, items which ought to be charged against revenue are charged against capital account; repairs and maintenance of publio buildings, school buildings, main roads, the cost of replacing old or obsolete weapons, repairs of ordinary roads and bridges are all charged to capital account. Large sums of money for maintenance, which by any wellman agjed private company, like the Wellington and Manawatu Railway, for instance, would be paid for out of revenue, are in the case of the Government lines charged to capital. What would be thought of a private company which charged the cost of painting the warehouse and providing linoleum for the manager's office to capital, and treated the proceeds from the 6ale of a section of land as revenue? Such a company might be able to show a fine "surplus" and declare excellent dividends for a time, but in the end it would be landed in insolvency, and the directors would be lucky if they managed to keep out of gaol. Yet the Government accounts include just such glaring instances of improper bookkeeping as those we have described. The Government themselves do not deny it, but they say that their practice of transferring 6ums from the Consolidated Fund to the Publio Works Fund, justifies them in making the oharges against capital to which we have referred. But why resort to such hocus-pocus P Why not be honestcharge everything to revenue that ought legitimately to be so charged, and be content to transfer less to the Publio Works Fund, or even to transfer nothing at »UP The answer is that this would not enable " the Government to parade before the public of this colony and the moneylender at Home a big surplus, with the object of getting votes from the one and further loans from the other. So long as Mr Seddon continues to hold the portfolio of Treasurer, we' have no doubt he will persist in the policy of allowing Peter (the Consolidated Fund) to rob Paul (the Publio Works Fund), covertly, of sums difficult to trace, in order that Peter may pay back Paul, openly, and with a great flourish of trumpets, a certain specified amount of money, which may or may not represent the amount originally stolen. And in this way, no doubt, 60 l<mg as times continue good, it is easy to show a "surplus." Meanwhile, however, our expenditure is growing at an alarming rate, and wo are living in a fool's paradise.