DOMINION'S FINANCE.

Dominion, Volume 1, Issue 183, 28 April 1908, Page 7

DOMINION'S FINANCE.

v SPEECH 1 BY THE PREMIER. TOTAL' REVENUE OF £9,055,948. ' i SURPLUS, £767,849.. Tho Prima Minister (Sir Joseph Ward) do " livcred an address before tho members of tho Liberal and Labour Federation last evening, - on the financial results of/last year, and tho position of tlib country generally. Mr. P. Fletcher occupied tho chair. Gddber's room, where the gathering took'place, W erbwded, r and among those present wtero: Lady. Ward, the Hon. C..M. Luke, tho Hbii.' fii H. Mills, M.P., and Messrs. Izard, M.P., and T. Wilford; M.P. An apology, for, absence Was received from Mr. Barber, M-.P. .. Sir Joseph Ward expressed, his pleasure at meeting so largo a gathering, and proceed- , ing said he proposal to deal with matters of'deepest interest tb tho country. He would give them the position of;tho country ao the end of last year—a year whidh. financially was unprecedented in the history of New Zealand. ... . . ' total revenue. ■ i ■ The Treasury books, proceeded, the Prime Minister, which ivero kept open after tho close .of. tho financial year ill, order that all tho.'revenue 'received, and the expenditure made out of imprest throughout the Do- . minion up. tfl and .for; March 3lj might bo '• "included in tho yearji ■ accounts, had .how. been, .closed, . and the results ~ undoubtedly testified to • tlie prosperous, . state -of tho . Dominion. ' ,The revenue rif tlie year Shows a resort! collection of 59,b"05,948i. , (Loud applause.) He wanted the people, to realise what this meint; rievei'.befbro in this "couiitry had- they had anything touShing it." Tlie ; 'popiilatuin. of...the ..country was hot yet , a ~ ' million, and they could look for even greater , doveiopmeiit when they got beyond that num- • ber. • To kchiere niite. millions ordinary. roVenuo with their coiiiparatively small populaj tibn'was.a matter.of the deepest; importance, and 'a teiaitt«r''for'tho' shieereSk' congratulation by, everyone not prejudiced. (Applause.) ABSTRACT OF THE YEAR. ' : He v proceeded-to give the following abstract of the"year:—y ' : ; Balance brought forward April 1, 1907 .£717,823. . Receipts during year— . Eeveuue ■ ... JC9,055,94G Other receipts 8,043■ V. . , .., .59,063,530 - ' ' . Expenditure during, ybaf— Appropriations ■.8,213,965 . ExcSSS'bf receipts b.vfe'p es'pbhditure &. , 850,024 r; . -\ ii,567,849 . Transfer to Public Works Fund ..., E()0,000 . Balance March 31, 1908 ~.. £7(37,849 . ' THE OONSOLibATEb fi.Nowi. these .figures' required liiiti to say ..; something regarding tho position of tli'b ConFuiid, as compared, frith „tlie : . ' 'vious" year.' ; Tho actual roveriu'e for' last : (1907438) 1 -.r was £9,055,946; as against'.. £3,399,075 for .1906-7, an actual Increase for the year ; o{ £056)871'. It was necessary to make .comparisons;'ili. ; .th.e: varioliS ' inents to see what tho country was actually ' doing/ ".''lt would bo fou'iid that thbro was an 'Increase in every department but two— ■ and !'deferrfe'd payinont,land. .' Bales." - Thbdetails of the Consolidated Fund ordinary revenue and-territorial v" wero as follow; — . .. 1007-8. 1906-7. Inc'Sß.Dfcc'se i £ £ 'i 5 £ i Ordinary Revenue— .; • i, 4 viS.-iA.Lii,--f ustoms . 3,103,565 2,911,040 165,b25 VS>mps (plus \ - " •' - •' lO - Post-' and Tele-. ' ._■ ' " ci?ph rec'pts) 1;550,93i 1',365,737 183i207 — - Land Tax , . 537;846 90,504 -. ■. ■ lucoine Tax ... 304,905 277;8(57 2.7i038 . .; Beer Duty 113,973 .107,532 . 0,391 - ; / . ( '.. Eailways 2,765,395 2,021,398 143,999 ,—\ Registration and: -; other v rii ' v'i •' 1 lees 129156 119,4-14 9,722 T ir.Malihe-Lv:;,., 42,217 .. JMgf' , . 218i3-42 O,OIT Territorial Revenue— , v Cash laudi sales .-45,233 . 37,309 7,924 — ■ .Deferred,!- pay-'?. . ,• mont land • . . , sales 2,255 2,462 - 207 Pastoral runs; . : , „ , Hnts, fete." ... 2i2;115 211,130 3D ; 985 - Total of increase's' u; 065,621 8,750. Less decreases .r. -•• ». 8,750. -f ' TqjtilS. - 9,055;916 8,399,075 656,871 Itcferring to tho Customs item, tho Premier rehiai-ke'd Jtliiit- last ,year .bbneessiohs were .V_ mado'dlhbuntihg to an'd this must ;generouslyrb6• taken:.into _ coiisidoration. Ho . also remarked that' very little of tho' last graduated land tax .oil-holdings of £40,000 / and upwards.ivvaSiinoluded in;.the £90,000 increase on ; the land tax. tinie next year they would then better judge .of . tho effect ot. v,-. the alteration in.the gradliatcdlaid tax, which' was.only .pUt ; into 'operation last year. "NO BOOMING'.'" | The position" of .tlio .revefitlo r at t\l6 prOsont . tim'e, as'ooihpftred'with'tlib ibtohuo bf 1905- ; 06—t\vo ' tears:, - aS'. followsI 1906-86. £7,584,359 i. 1907-8, £9,0551946; an IncWasb cf £1i471,5&7i' Ndw t wh6fo didthej look for'thb .'cau'so ;dl .this : mcre4Sp? ;. There ;J, was lio "booinihg" going on. Occaiiohallj . - in parts' of the country there was land speculation or' property.'- speculation; ; aiid iicti- >~ .tious-. rises. . .But throughoiit New Zea. {■ : land the people' were, engaged in theii occupations, . and there :was, a steady ~ growth. It mattered not where one went, .there were'the same evidences of active energetic", work going: on, l and the people individualljv irrespective of/political opinions, were animated .with a great libpb and con- — fidehca.in the future of. the -obuhtry, .which was based upon tho position of' the country, ■ wliichi. for its size, ..was..unexcelled ill tho. world.' . ■ : •' \ ; . ESTiPitATED ANfa EXPENDED. . Comparing the niilbunt fexpeiiSbtl fliifing tho ■ - , year with the. . Preftier-: said thb atiiount bstiihated had' booh-Pfcrtedhent ■ charges; £3,099*079.;--'ahh'tlal .apprbprisltidns, -£s)lss,B72additional: ; appropriatibiiS • 'for w i'hilways, . £215.395, . making a , total of £8,450',346. Tho -,Mount. iesfebilUed. Wis :t-. - Permanent cliarijbsj £3,128,622; hild annual appropriations, ~ £5;085,343; a total ; ; of £8,213,985. Tho savihg on the. dstlh'.atos was : thus £236|38i. Tlie £230,000 saving was largely accounted for by additional appro- , i)riations for railways. . .: ■■ s PUBLIC works fund. . - Tho position ofithb Public Wbrks Fund was » given as follows:— > . £ i Balance from last year ,359,100 • ' lleCeipls— .. • - Loan . monby- (including . liTomium ■ ... 878;lli - . , >. Transfer.froiri rdvbniib;;... 1 .8p0,00U ■ • Other receipts ■ 1,640 . Total receibts ' ... , 1,670,754 y . Total Id fund . 2,039,154 : Expenditure— ... .. . . . ; Under* apprbpHatiohs l,881,5ui;; -■ ■ Other charges 1 ... ,5,027. . Total expenditure i.; 1j886,591 ' Tho "Premier proceeded to say that tlidse ligures should satisfy both those who said they tlid not spend enough and those .who Said .that they spent too much. One; of , tho fundamental principles of/ tho Governiliont was, that tlie Ministers snoiild not exceed the allowances t-b their, Departments, and when they got so closely to, the total as shown, he was satisfied in saying to the critic that they had dono very well, and to tho oho who .wanted them to, go faster, they had donO very well tOo. (Hear, hear.) He had heard/somo say . that the GovernWent had. gone oh, in a-spirit of compromiso. but wheli compromiso was well engineered ; < And donb well it was ono of tho best thingi ; they could do.' (Applause.). 'MONEY AVAILABLE PUBLIC WORKS. The p'eoplb,, hb . continued, had a right to : know, >yhat iilOiiey there was tb carry on .'until Oilly next if ntcessiirif. Ho was'glad ' te be able ,tp say that they Had'ah amount . • of;£Sie,g69.lh the Works Fiiiia,with ' authority tb bahsfer £206,660 out of ordinary re, This sillh.cduld bo transferred nght away;. ThGV lihd available fi-nm 1 m Ptibilb -Wei-ks frihS,: ate. ff diplnd™ tura- » totfil balancu of £152.563. and a

balance of loan moneys of £191,800 toll paid in whenever, asked .for..-They thorefoi had £516,569 to commence the beginnin of the year with. There need not bo an ■ apprehension. They had the raoney to carr v on tho rate of expenditure, and they ii tended to do so. He referred again to th confidence which had existed; in the generi prosperity of tho country, and said tho - .;v from, the Government's point' of view, ther •x,nothing to justify the] pessimistic .vie l .'- that somo people had' been trying .to' sprea . abroad• regarding the position ■ of 1 tho cour try. ■ (Applauso.). INCREASED EPENDITUHE. A comparison of expenditure for, 1906With 1907-8 was next given. The pcrmarieii charges in U907-8 were £3,128,622, and th - annual appropriation £5,085,343, a total'c •:.> £8,213,965; and-in 1906-7 permanent charge were £3,038,120,: • and the., annual, apprc . £4,736,806; a total,of £7,774,92 C v . 11° wanted to direct special attention ,to th 'fact —becauso thoy would hear it referred t • j, in tho House—that the 1 Increase'ln , the or dinary revenue account in the permanon . ; 7,( . charges and annual appropriations for 1907-oysr-the. previous -..year'.was',£439, 039. ; . The' f ' would hear some' sombre' critic,, or somo am ,/ - hitious gentleman perhaps trying to get inti the .House ,', of R-ep'reseritatives.' (laughter) '. :-etatxng .that this increase was torrible.. Bu "■ tJ>3 answer was that . over, and above thi increase there would be actual cash pai< v . into the Treasury ~ of nearly doublo th( sum. Ho' wanted to . impress upon then , '■ that tliafc had v boon dons at the end of th< year, -. and a largo/remission of taxation *tion had been made. They had, the • general progress and / results, which' gavi -;,: the magnificent ,'revenuo of nine millions-odd ■ and they could never have an increase If revenue of the extent mentioned vdthoul a proportionate raising of the expenditure tc R355t the revenue. It was a matter of sound bnsiness v and; he instanced a tramways venture, in' support'of it: Oho of the : things -tc be noted in regard to tho 'growth of-tho'or-.dmary appropriation /',.- for'; carrying on the , s y//Various •• departments /lind supplying public : necessities—referring.'especially: to tho Con.soiidatsd. Fund—was,,that the revenue' was 'r increasing, more" in .proportion':than tho • in- /., ' cre'asß' in .tho' amount .of; money'expended :to . bring abbut'that revenue./' '~./: •'•-■/ ;•' PGS7 AND TELF.CRAPK: SAVIWG TO THE USE*??. , ■ ' The Premier next dealt with'the. Post and ~a nA tho .Railway Departments. He said;he'wanted to supply (inures which v.''...,.' '^errf-most, reassuring p.nd convincing in 're- (. gard to the -Tiork' of these departments and '. tneir. general ; position'; Tor tho ;year 1907- : 1303, Tie said, tho , actual .amount paid in - cash to tho Treasury from postal cash re- ' fi'nni? 1 ' 8 £34,796; from postal stamps, '■••••' - from telegraph cash ; receipts, £133,0/_8; telegraph stamps,.'£222,soo. Total, . '~ £831,654, , so that some justification for .'' Saying--that the istatement made' 'by him , , .rioV long a£o.'- that'-'withni a short (time the //■'/ revenue.from;the Postal and Telegraph' De- ■ partment_ would touch . million 1 sterling 'Becihed .likely to be accomplished/'-'"I- dosT'i' ? aicl tl,e . E ? ea ' ier , "to point out that . what the;-public,■.-■ whoutilise, this .important ;branch of the ,'irabhc. service, may not "realise, ■ -... namely, that if .tho same rates for .the. year / . just ended had been continued as they we're . in 1599, the cost-to tho public on the post 1 -and tele£raph would have' beeu £64r447 in- .' ... stead, of; £429,064;50 that, on tho'letters i v and othor matter rested in New Zealand in ; .uhe year.l9o7-08,' the public gained' on the' £212,383-^(ap'-" E'ausp)—and what,the nublic has coihed the vs,;--revenue fas lost; ~ I want 'further to' em- i phasiso wflat t'-is.mer.us' to'tho nibh'c of the . Dominion , by calling their attention to the ~;>;--v;fact that^ evenif^■ the' Post andbusiness, for the' next' Jen: years- 'regains .r.stationaryj and no increase takes'-ijlaco' with-; ', n ' that penod, - thp .public /will' liave gained ; J - -time . £2,l2o,ooo7^(applause)— : : wnile the-'revenue,. of course,; loses that . . . amount. I presume; I am. right- in' saving that even amongst the ; worst class of nessk • - mists it would hardly be contendo'd that the work of; the Post,and Telegranh Department V ,-' s S°i°£ .to, remain.-'stationary' for the'next "-'ten-years, but I am puttin" it from the"very Morst standpoint when I give these;figures' ' af n ' o ir ! crc - se >; &"• the I business' ■ THE RAILWAYS. ' * ( - _ Dealing similarly with ' tlu£ Sir' Joseph Ward said that if the same rates had .. . been charged upon the railwavs-for goods . and passengers for .the ' year .1907-1908 that' were in. operation in 1899, the 'public, at V n°nn eat ' w . 0,11d: have "aid \ .£400,000 more, than -they actually n'aid. dur- ' ■. ID B ; the;year.-'That amount, therefore, wi>,s a direc, saying.toi the users of the'railways and-ftgata he desiijed to roint'.out- that even : , »/ tho.-: ™w*y.: business - continued without .... any increase at all during the; next 1 ten- - . years,.,what a savini:,,this meant:- to' those' who > u /ed railways! • It rebresented■ a' Sllm . ? ~ ? .'? ?• (Applause.) He doubtless -, '""2. 1 " by .critics . that ho should riot .... .attempt- to show;, what this savins' means tor a period of years ahead. ,Ho ;did so in. ■ .- °™or. to emphasise.what was n fact: that - upon the post. Office reductions Inst ye?.r the • > • paid £212,383 less upon the actual work-they did than; they woiild 1 have-paid if Government tad not ; reduced tha rates Present ruHns,. and Vthoy paid' •£500,000. less for tha actual business done by them upon the railways/. So 'upon--those-t,,o branches of the Service alone, upoh busi- . .. noss .the public had £012,383" more to c.., spend. m oneyear. in, other directions than' they would have had if ; the old rates-had -; ■ ; continued.,. (Applause.) He -said'- this after- ' lowing thai/ they had -had a recbrd revenue r.', and'.".record, surplus; ■'/. , DORROW INC. : . There had bc-en an idea' prevalent that tno (jovernment -had • been, borrowing from the public large..sums,of;mbney/to:the derti-' - ment of the; industries' of the country. ' The total . amount.; borrowed. . lust year was £340,000, and of that amount £310,000 had been _ spent -■ in . the purchase/of' estates, arid- ,, remamed in the country, and the majority 1 ot tho owners ..-.remained in .'the country, and , V; vontured to express the*opinion that tha - .' bulk; of; the money, remained m the country. - 1,, „L ,kad. borrowed ': from- Australia ' £1,000,000 at ,2 per cent, premium, but the - total;amount- obtainedvin'- New Zealand was " -only '£340,000. /'V ,- ; TREASURY BILLS REDEEMED.// ■ '■ TM-.Preimer-,then-gavo'-'a -brief .'synopsis of,l; ■ *h,9."'.Position,., -recapitulating his;',- main >' points.-. also said that the transfer from / revenue . in aid of ," public / works for,.;the. yyear,/ viz., ; £800,000, ■ was, ! - a . .record,/ the . largest ; i amount > prer -, Piously transferred being £775,000 in-1906-7.'- - amounted;/ tOi £1^0,000.1/ Since the - Liberal / Administration :- . took office,. £700,000, Treasury Bills had been ■ renewed from year to year: ' They had practically ■ become a permanent-debt, but tho Government determined to reduce the amount gradually, hcnce this payment-ofT of £150 - 000, in addition/to paymentAoff of a : like amount last year, now reduced the .Treasury I Bills to £400,000. The .total amount of reveniie transferred,to, the Public Works Fund by the - Liberal Administration since , taking /, office in, 1891 had reached £6,430:000. (Applause.) The balance of the Publio''Works , Fund at March 31, in cash, wa5!£124,769 and a sum of £191,800 loan money remained to be received. The sum available for next year ' , was £316,569, plus £200,000 from 'the'consoli- ., dated revenue, which,- with a transfer of, say,' .., £700,000 from surplusj-would give £l,ooojooo. it was not generally known—as woll as ho ~ knev/, it—;that in times of great prosperity,' ' ■ as in individual life, tho /Ministry had to •/•'stand;as adamant in regard to the various , Eolicitations', ! and representations, which , rcached thein through many channels. The 1 Government had to realise its duties and the individual iapplicanty or body of applicants, .... did, not rccogniso perhaps that collcctivcly '.' tho various wants wont into'mora than.the /- figures ho had, given them that -night.,; Ho pointed out: the principle laid -down by the Government in the past in regard: to expendi- - turo, and said it would be adhered to m tho ■ future./-// , ■ ■ /CONCLUSION. ;' In conclusion, tho Premier said the country was not in n dangerous - position, nor ' was it likely to . be. The figures ; he had already supplied were absolutely'correct, and ... the, Goycrnment had given back to the . people with Customs, s railways andpostal, con- ■ cessions, as well as the remission of sheep tax, total concessions of £1,550,000. And during/the last twelve years, if the whole gamut of legislation" .was'searched,: it-jrould

Ie be found that only one Act had been placed •e; there increasing the taxation, and, that was gi thegraduated /land tax ' of last session, y'i which '\vas' introduced/to induce , the 'cutting y' up of estates;'/'_H6'-'could supply tho whole i-', of' the ' items'; 'if . 'necessary, ; Should the e necessity 'arise ;at /any time, though he il. had_ shown already, . the, contrary, for ,t an increase .in • taxation ho' was sure that ei the' people /'.who lind /shown such l fino. results v ,woul(l;.h'ot.ijo to turn their backs d ,0.11 the Gov-eriiment had done so well .'for', them, /and would continuo to do so / in',the,future.".,.(L6ud app'ause.) I ~on the .motion ,of. Mr. Fitzgerald, seconded by Mr.-, E. Arnoldj . a vote of thanks to tho 7. Premier and .confidoiice in' tho .Government t -'yras carried with applause. e -.. The Premier.; moved votes of thanks to f Miiiifie's Band,, which had supplied music, s to ladies, who" had arranged for refreshments, - arid to):the chairman... . Suhseguentiy refreshments were handed d roundi • v ' 'v ' ' ■ 0 -.;/■ , — ' '