ESTIMATES OF EXPENDITURE

Press, Volume LXXXIII, Issue 25269, 22 August 1947, Page 9

ESTIMATES OF EXPENDITURE

Activities of State Departments £1,000,000 LESS ON . SUBSIDIES

( p a ) WELLINGTON, August 21. 1 A decrease of more than £1,000,000 in the amount to be paid in subsidies comnared with the previous financial year, expenditure of more than £1,000,000 on ♦heacquisition of coal mines by the State, and a reduction of £2,000,000 in the vote from the Consolidated Fund for the Social Security Department, are features of the estimates of expenditure for the financial year 1947-48 tabled in the House of Representatives this evening. While the total vote for stabilisation is £13,458.774, compared with £14,539,431 spent last year, subsidies to be paid for primary production (including timber) are estimated to fall to £2,851,700 from £5 309.120 spent last year. in this year’s estimates the main highways account is replaced by two separate accounts —the highways maintenance account, which will be financed from the Consolidated Fund, and the highways construction account, which will be a subdivision of the public works account. 1 Moneys paid to local bodies will be derived from the highways maintenance account, but capital construction on highways will be charged to the public works account. The Main Highways Board will remain in control of both divisions of highways expenditure. Another change is that the National Employment Service and the Labour Department have been merged into the Labour and Employment Department. Total expenditure from the Consolidated Fund this year is estimated at £105,516,866, compared with £103,683,455 spent last year. Of this, £23.522,561 is for permanent appropriations, compared with £28,930,711 last year, and £81,994,305 for annual appropriations (£74,752,744). Debt Charges Little Higher Of the permanent appropriations, debt services account for £22,782,115 (£22,515,369), showing little change, but other permanent appropriations show a fall to £639.971 from £6,318.259. The difference is explained by the fact that last year there was a transfer of £3,000,000 to the War Expenses Account, which was a non-recurring item, and also a transfer of nearly £3,000,000 from the Consolidated Fund to the main highways account

In details which follow of annual appropriations, comparisons are given between estimated gross expenditure for [this year and gross expenditure incurred last year. This year’s figure appears first in each instance.

Prime Minister’s Department: £144,295 (£119,262). The vote includes an increase of £ll,OOO for the National Film Unit. External Affairs: £591,063 (£395,570). The Increase is largely the result of New Zealand’s contribution to international agencies. A new item of £19,870 is for a contribution to the inter-Governmental committee on refugees, but this was replaced from July 1. 1947, by the International Refugee Organsiation, which also takes the place of UNRRA from the same date. New Zealand’s contribution this year will Ibe £213,882. The vote for the United Nations, on the other hand, declines to £27,562 (£79,663), New Zealand having benefited from U.N.’s revised budget. The costs of maintaining overseas legations show little change, but the vote for Moscow is about £5OOO less. The location of U.N. headquarters in New York and the need for accommodating delegates and staff there have increased the vote for the consulate in New York to £16,634 (£1826).

Research Equipment Scientific and Industrial Research: £695,370 (£580,882). A general expansion of research activities is indicated, with greater purchases of equipment not available in recent years. There are grants of £3OOO for the Fertiliser Manufacturers’ Research Association, and £ll.OOO for the Dairy Research Institute. Industries and Commerce: £1,077,090 (£513,074). There is a new item of £500,000 for the procurement from abroad of multi wall paper bags as containers for cement and fertilisers because of the shortage of jute. Tourist and Health Resorts: £480,602 (£359,767). The vote for advertising and publicity is increased by £26,000. The cost of repairs and renovations to the Chateau Tongariro is estimated at £30,000,- and £40,000 is allowed for similar work at Wairakei. A grant of £2OOO is made to the training school for hotel workers to operate in Auckland. Health . Department: £4,872,398 (£3,409.844). Subsidies to hospital boards at £3,250.425 (£1,899,197) reflect the increased cost to the State of last year’s legislation stabilising at Jd in the £ the maximum hospital levy upon contributing local authorities. Mental Hospitals Department: £1.154,102 (£1,072,130). A new item is £20.000 for comforts, holidays, and outings for patients.

Education Department: £8.303,089 (£7,712,490). This reflects the increases in teachers’ salaries, allows an additional £50,000 for the transport of school children, and provides £13,067 as New Zealand’s contributon to UNESCO. War and other Pensions: £4,656.480 (£4,735,185). There are small decreases in the provision for pensioners of the two world wars, but war veterans’ allowances Show an increase of £44,000. Social Security Department: £16,000.000 <£18,000,000). Other votes are:— Legislative: £140,337 (£138,676). Mines: £123,680 (£118,233). Transport: £219,701 (£184,455). This includes a vote of £lB,OOO for road safety education (£1000). Treasury: £327,162 (£296.293). The vote absorbs the National Provident and Friendly Societies’ account, and includes an amount of £12,360 for a new subdivision of the Stores Control Board, which previously operated under the War Expenses Account. % Stabilisation Subsidies Stabilisation: £13,458,774 (£14,539,431). The total vote for subsidies amounts to £13,420,000 (£14,503,377), and includes Under shipping, transport, and incidental, £600,000 for marine freights, £900,000 for the loss on chartered vessels, and £500,000 for the railways working loss. Other charges amount to £180,960, bringing the total to £2,180,960 (£1,229.217), the increase being due to the rise in the subsidy for marine freights and the payment of £264,213 to meet railway working losses. Other subsidies are: coal production end distribution, £1,630,000 (£1,685,362), about £260,000 more than the estimate mainly because of retrospective payments made in connexion with the Waikato tmnes agreement; primary production, including timber, £2,851,700 (£5,309,120); carnage of fertilisers and lime for farm production, £707,000; fertiliser bags, corn sscks, and wool packs, £95,000; fertilisers (other than superphosphates), £178,250; ®tock and poultry foods, £190,500; super£l.4oo,ooo; other charges, o 0: essen tial foodstuffs and clothing, 4?;;’ 76^?^-(£4 ’ 272 - 890) ’ £405,000 for clothing. £2,040,000 for butter, cheese, milk, and eggs, £750,000 for meat. £525.000 for ®V£ ar ’ £500,000 for tea. and £538,240 for ♦a- er *i ar^- es ’ su hsidy on wheat to mainain the price of bread and to ensure an re tum to growers, £1,529,000 , ■° oo -■ miscellaneous subsidies, £460,100 (£186,788). Department: £266,195 ’ *247.807). The increase is due to general post-war expansion. and ‘ncome Tax Department: *■643,625 (£543.828). The rise is mainly cue to staff increases and the decentraliBation policy. Stamp duties: £193.678 (£148.067). . Public Service Commission Audit Department: £110,514 (£105.962). Service Commission’s office: £66,270 (£41,130). Provision is made a staff increase of 20 and the estab■ushment of an office in Auckland. internal Affairs: £1,510.985 (£1,154,957). P rovis ion for £12.000 for the rroduction of the lawn tvpe of servicela^. 5 cernete ries: £250.000 as New Zea~,s contribution toward the relief of Xv v,ctims in Britain; £59,000 for fire tinn 1C^ S . and equipment for the protec- " fores t £lO.OOO for Christian orgatowards the cost of additional al accommodation for young CTu forking in cities; and £lO,OOO Tc ,_ ne . Otago Centennial Association. (^<2.J' erritories Department: £585.281 • The increase is mainly aba h-n d ?' v the Provision of £21.500 for adca^tine sv ?tem to serve Western and £34 oon as a subsidy on road - ment in the same area. A new Mh q j 3 sum of £27.633 (recoverable) irinie*^ 3 oy ance d to the Cook Islands Ad-tririt,rrat’?-n for th e installation of elecof £^ ,c . ulati °n. There is a decrease vpccXi v? 0 in expenditure on the motorD^’.- Maui Pomare. £4Qaocn ng , and Stationery Department: *•***9.36o (£423.959). Jl a J ine Department: £420.788 (£418.526). and Employment Department: *■1.124.429 (£893.900). The increased vote the Provision of £200.000 rnjeraryts for passa § e money for 2500 im-

w _. . Native Vote Higher (£65»2 f ) r ° nt Control Commission: £20.750 -Jiative Department: £561,757 (£429,248). is absorbed mainly by road metalling, and bridging in naland Projects and native land development schemes. '(£niJi lOn Department: £164,188 tn The increase is mainly due the revaluation of districts. Electoral Department: £33.805 (£158.293). and Statistics Department: (£137.135). 64’ ! ) tat i° n Department: £417,912

Justice and Prisons Department: £521,127 (^ 4 rown 9> Law Office: £12.429 (£12,662). Police Department: £1,026,643 (£1,044,953).

Navy: £1,806,103 (£1,309,867). Docking, repairs, and maintenance, and land and buildings are the main items responsible for the increase.

Army: £3,821,000 (£2,840,749). The major item is £600,000 for salary and pay increases. The vote includes other items which were previously a charge on the war expenses account.

Air: £4.507.033 (£2,955,930). The vote includes £410,000 for the purchase of Mosquito and Auster aircraft. There is an increase of £630,000 in the vote for civil aviation, most of which is absorbed by the installation of aeradio technical equipment and the construction of aerodromes and buildings costing £400.000, and by the expansion of the meteorological section of the Air Department. Subsidies and grants to aero clubs amount to £20.000. Maintenance of public works and services: £5,184,885 (£5.281,124). Highways maintenance: £3,427,089 (£2,439,579). Lands and Survey Department: £940,584 (£726,342). There is an increase of £30.000 in the vote for swamp land drainage and an increase of £63,000 in the vote for national parks, scenic preservation. and bird sanctuaries. More for Veterinary Services Department of Agriculture: £1,825,127 (£1,450,342). The vote includes an increase of £20.000 for veterinary services, an increase of £32,000 for compensation for condemned stock, and a new item of £30J)00 for compensation for loss of stpek through tuberculosis. There is an increase of £112.000 on last year’s expenditure of milk treating houses. Small farms development: £5,678,150 (£3,516.744). The chief increase is an additional £1,600,000 for the acquisition of more land for the rehabilitation of former servicemen.

Land for settlement: £76,090 (£49.233). Native land settlement, £1,277,800 (£1,046,899). Electric suoply account: £7,500,000 (£6,007,448). "The intended capital expenditure on new works and the purchase of plant accounts for the increase. Public Works account (including railway construction): £145,000 (£231.272): housing construction, £7,482,000 (£6.193.779).

Education buildings: £1,250,000 (£992,275). Lighthouses and harbour works: £32,000 (£13,182). Roads, etc.: £382,000 (£227,426). Soil conservation and rivers control: £400,000 (£270,864). Irrigation, water supply, and drainage: £400,000 (£482,861). Highways construction: £561,000 (£563,188).

Purchase of Army Buildings Public buildings: £1,850,000 (£715,809). This vote includes £115,000 for purchases from the Army Department and £1,000,000 as the estimated cost of purchasing defence buildings from the War Assets Realisation Board at Auckland and Wellington. Under the Social Security Fund vote, £983,484 is provided for administration expenses and emergency benefits (£838,404) and medical and hospital benefits, etc., are estimated at £6,492,800 (£6,211,580). State coal mines: £4,269.285 (£2,594,490). The vote includes the following sums for the purchase of collieries: Paparoa, £55,000; Star, £52,100; Black Diamond. £41,000: Westport Coal Company, £900,000. Working railways account: £19,954.989 (£17,461,797). The sum of £2,000,000 has been set aside for the purchase of 3000 LA waggons from Britain. Post Office account: £8,303,044 (£7.122.943). This includes an increase of £200.000 in the cost of the conveyance of ocean and air mails and a new item of £134,720 for Post Office premises, which will be used mainly to provide transit housing for Post Office staff. There is £75,000 for the purchase of the cable terminal equipment in Auckland of Cables and Wireless, Ltd. Export Division, Marketing Department: £96.965 (£107.015). _ .. Internal Marketing Division: £164.390 (£110.469). The increase is due to expenditure of £30.000 for a new lemon processing shed at Tauranga. Broadcasting: £810,882 (£460,190). The increase indicates general expansion and the purchase of equipment not previously available. , , x Iron and steel industry: £174.444 (£7506). The increase is due to the payment bv the Crown of compensation m the Onekaka iron and steel case. State Forest account: £1,846,440 (£1,338.677). Forestry projects account for £270,000 of the increase. Earthquake and war damage account: £15,475 (£14,098).