Expenditure Will Be Up £48m

Press, Volume CVI, Issue 31088, 17 June 1966, Page 10

Expenditure Will Be Up £48m

(Parliamentary Reporter) WELLINGTON, June 16. An expenditure of £632m, excluding debt repayment, is provided for in the Budget. To meet this increase of £4Bm on last year’s spending, it is estimated that £573m will come from taxation and other revenue, leaving £s9m to be found by public loans, small savings and other capital receipts. The Minister of Finance (Mr Lake) said that Consolidated Fund revenue from taxation and other sources was expected to reach £528 million, a rise of £4l million.

Allowing for £1 million in supplementary estimates, expenditure was estimated to rise by £34 million to £520 million, leaving a surplus of £8 million in the fund.

Estimated expenditure from the Consolidated Account this year is £33,383,475 more than the amount voted last year. This is a smaller increase than last year’s, Which amounted to £40.25 million.

Social services, apart from education and family benefit capitalisation, account for a large part of the £519,120,953 estimated to be spent from the Consolidated Account. Together, health, health benefits, hospitals, social security monetary benefits, social security expenses and emergency benefits, and war and other pensions are estimated to cost £196,825,000 —or £10,052,000 more than was voted last year. Works and capital expenditure were estimated to cost £144 million, and of the increase of nearly £lO million, electricity development would account for about £8.5 million. Annual capital outlay on electricity had nearly doubled in the last three years, said Mr Lake. This year, £44 million would be found, compared with £35.5 million in 1965-66, and £24m in 1963-64. This year, nearly £7m of

the total of £13.8 would be spent on the Marsden Point power station, to use oil refinery residues. Of this year’s total, £4 million would be drawn from the World Bank. Heavy expenditure was also planned at Aviemore, Tongariro and Manapouri. For railways capital expenditure, £9.6m is provided. A £lsm World Bank loan will be used, of which £3.5m will be drawn this year to help pay for the second Cook Strait ferry Aranui, 114 diesel locomotives, 15 shunters and 2300 freight waggons. Of £10.5m voted for the Post Office, nearly £9m will go on telecommunications equipment.

Provision is made for spending £lm more than last year's £l2m for developing land for settlement.

There are big increases in the amounts estimated for defence, education and debt services. At £4B million, the amount estimated for defence is up by £7.2 million. The amount estimated for education has risen by £5.2 million to £72.2 million, and debt services are estimated to cost £71.8 million, which is £4.8 million more than last year’s vote.

The Post Office estimates have risen by £2.7 million to £50.2 million, the Justice Department estimates have gone up by £525,000 to £4.5 million, and the Police Department estimate has gone up by £355,000 to £5.2 million. The Accounts outside the public account are estimated to cost £53.4 million—£2.9 million more than last year’s vote. These accounts comprise the Earthquake and War Damage Fund, the Government Life Insurance account, the Maori Trustee’s account, the Post Office account, the Public Trustee’s account and the State Insurance account. Other items are:—

Tourism.—The Tourist and Publicity Department will spend £252,000 advertising New Zealand overseas during the year—£22,3oo more than was voted last year. Briquettes.—£62oo is allo-

cated for an advertising campaign for “Globrix” briquettes.

Public Buildings.—Courthouse building estimates are doubled to £180,000; mental hospital building estimates are up from £900,000 to £1,175,000; prison building estimates are increased from £675,000 last year to £1,100,000 this year. Security Service.—New Zealand Security Service expenses are estimated at £122,000, which is £9350 more than the amount voted last year. However the service overspent by £8249 last year. Crime.—£ls,ooo was voted last year for payments under the Criminal Injuries Compensation Act, 1963, but only £4264 was spent. This year’s estimate is reduced to £BOOO. Gas.—£4o,ooo is included in the Mines Department account for the development of natural gas at Kapuni. Gold.—The Mines Department is allocated £60,300 towards the search for and production of gold and other minerals.

Youth Groups.—The Internal Affairs account includes £20,000 for subsidies to church halls used for youth organisations, and for youth camps.

Hurricane.—£loo,ooo is included in the External Affairs account for hurricane relief in Western Samoa: the Department of Island Territories account includes a grant of £9OOO for the same purpose. Africa.—A new item in the External Affairs account is £12,120 for assistance to Zambia under the Commonwealth Assistance Plan.

Dams.—The Electricity Department’s estimate for capital expenditure on new works and maintenance is £44 million, including £840,000 for Benmore, £5.3 million for Aviemore and £11.2 million for Manapouri. Education.— The University of Canterbury’s grant this year will be £1,111,000. Frigate.—£396,ooo is allocated for hire charges and initial stores costs of a frigate on loan from the United Kingdom. War.—The cost of military commitments in South-east Asia is estimated at £2,320,000. Life Office Concessions

(Parliamentary Reporter) WELLINGTON, June 16. Changes in the basis of taxation paid by life insurances offices were announced by the Minister of Finance (Mr Lake) in the Budget. In the light of a recentlycompleted review of insurance taxation, it had been decided to continue the concession to life offices of paying income tax at 9/20ths of ordinary company rates, but amending legislation would provide for changes, of which the most important was the way in which company dividends received by life offices were assessed, said Mr Lake. The existing exemption on these dividends would be phased out over three years starting in March, 1969, and in addition, said Mr Lake, the offices’ exemption form Social Security tax would be limited to income derived from life insurance business done in New Zealand.

He said arrangements would be made for life offices to invest a larger share in Government securities and farming.