THE STATEMENT.

Dominion, Volume 5, Issue 1512, 7 August 1912, Page 4

THE STATEMENT.

REVENUE & EXPENDITURE. ? THE YEAR'S: TRANSACTIONS.- "... ■ ..■"■• ' ■ ■" ■~~7~v'; , , ; ;.- ' '". : ..:!\ INCREASES .AXD.'SAy.INGS.,:.i, ■;)-.. '. ■ ■ '. ~ ': ■'■ '■: .. ■ ■ , "The Hon. J; ' ALLEN (Minister foi /Finance) said:— " ' , "\ '[ ..ViTJic" revenue and 'expenditure for, ;the .financial, year ended March 31 Inst hare • .already been nrescnted to the. House,' as ! well. as.,.r. summary of the : year's operatiois. I have pleasure in svbinittiug'isoinn particulars.of, .tho year's transac-1-tions for it.hn information.of.- honouralilc v, l iui , u),be.rs, . Jl'lie ;GSl.i,matPs .of, revenue and expenditure, iinil (lie actual; revenue and '.■.eiptntlitare,, .tire'slunni: in the.- follun-ing _ sfuUTiieiilij:— : , ~ ■• . . '. '.. '■ ~ '..',.. lievenue. '..-'.. . .. ' „■ ■ ■ '. - ' ■■■. ' • -£ ■■■■ Actual revoniK',' .1011-12 11,0:*2,5 ( 1 ..Estimated roveimc, 1911-12 ...... IO,J2!),O10 -..., ...Esccs.s pypr estimate .......... ,A'(i03,53l ■ i :■'•,;-., .!■■■'/ J'lxpcndiiiii'p. ■: /.■I;.-.: ■■ ■;■■.;■■ ■ ■ -.X - Efrtimalcd expenrlitiire, 1!)11-12 10,004,67/ •.A'ctual expenilituve, 1911-12 ...'..; .10,340,306 ■ -i.> Less than estimate ............. =E2GJi3O£ : : Incrcosps in Expohditiire. . ■ The total increases under the various ...headings over tliu expenditure of the previous year amounted to <£597,262. 'J'lu ' particulars are:'.'' .."■'..•.. ~'.. •' ' ' . ■ .£, 1911-12 ' ;............. 10,3-IO,M( . 1010-11 ....,.; 11/li.yoi '": -Increase .£997,21 i: 'Accounted for ns follows-.— '*.£.'-£ Interest ai\d Sinking . '' I'lLiul 198,000 ' Under. Special Acts 24,8fc! Old-age I'ciiaions ■ 21,000 ■■■ ■ —— 21.1,8fii •I'ostnl ■Department 7-1,700 Working Kailways ISI.OOO Public Buildings, IJo- ■ main?, etc. ..,'. 7,(100 Minister for Justice ...... -U.uCII ' Department of Internal • ■ "\ .- ■ Allairs.V. "......'—.. 123,7011 . . — ■ Defence Department ... 189,000 .. Department of' Lands .. . . ■•- anil Survey .27,800 Department of Agricul- ..... hire,' -Commerce, and I Touvists •• 31,800. • ■■ 'Eduoatiori' Department 8 ( ,200 ■ mother Dopartments",..... 20,000 ■ ■"" """ "". ■'. . 1,001,70 ■Savings on— ■ .. .. . ...- •:-legSlative.Departments... ,[* . . ' .Miscellaneous • :>:..•■;.■■•■ _V?T.. ? . fl -:-r :;■•:::■.'-:-• ...-.-.-... X9U7.28 The cost ef.the g(!nCTiit elettion-.and th conaua cauaid most o£ the iacroaae in tn

expenditure of the Department'of Internal Affairs.' The large . increases . iii ihe amounts 'required for working railways, interest and nuking fund; and , education are unavoidable, 'unless wo alter our policy in regard to railway extension, borrowing, and .education. The'increase in the expenditure on defence is due to the introduction of the new system. .THE PUBLIC WORKS FUND. AJIOUXT AVAILABLE, .C 1,132,590. The position is here shown.— .C Jhlancc from last year 1,140,043 ■■ .Receipts,— • ' ■ •£. . ■■- ■ :' Loau-moiiey ■ 6DS.COS . Transfer from re- ■. .' ■ ■ ' , .venue 500,000 • Other receipts■; ■ 1-M-lli ~. '.■■... .'- 1,210,751 ...'., 2,350,736 Expenditure,— ■Under, appropriations 2,200,7-15 . ■ Other charges ; .07,471 ' ■ ■ ' ■ ■ ■ —— ''SS ' '■'•: Balance at March . ".. !■" ■ '31, 1912 ....': • ....-■ 82,580 • liulnnce- of • loan- ■ money to be reroceived ...■.....: » 1,050,000 Amount', 'available to start . "the ' current . " " year with :..... ......£1,132,580 THE PUBLIC ACCOUNTS. STATEMENT OF THE POSITION. On .Tilly 10 the .Prime Minister did mo the honour to commit to my care the. administration of, the finantfo of the Dominion, and it would, no doubt, have been 'satisfactory , td members of Parliament if iv-statement'of 'the position of the public accounts atiheiibove-mentioned date had been presented for their consideration. The'ro would have been some difficulty in doing-this; it will suffice if the position on .Time !i0 be given instead arid compared'with' the position on March 31, 1911, and on March 3K 1912. This is shown in the following: -statement.".■(Wβ give only the more , important accounts)-: — '. '■"' Consolidated 'Fundi ;.,- ■.-■.-.. ■ .... ■ £: balance on March. 31, 1911 ~ ,580,483 liabilities oil March 31, 1911 ...... 236,3 c Jjalance on MaYch .31, 1912 ...; .Bp<,2/l» 'Liabilities on March 31, 1912 ...... 293,/-U Balance on Juno 30, 1912 782,a-}7 Liabilities on June 30, 1012 d10,41d i Public Works Fu.nd. UalnncQ on March 31, 1911 1,140,045 Loan-monev, to .iveeive-.- .181,850 ' •■'-•' : •■■'■•';..•...:.. 1,321,093 Liabilities o, March 31, Loan-money, to receive" 1,050,000 . Liabilities on March. 31, ~„.„,, 191? 1,13a,8r2 BDhmco,on.Jiuio3o,.l9l2 299,881* . - Loan-money, to receive 477,207 m "imlZl™'.. 30 .:. ;.ww,3«t The Aid to Water-power AVorks Act; 1910. Unexhausted aulliority - ; - for raising loan 500,000 ' Liabilities on March 31, 1911 213 , 499,787 Unexhausted authority for raising loan 500,000 • Liabilities on March.3l,, ■ . iqio 5G,1n7 U1 ; . --i-r 413,843 Unexhausted authorities . for raising loan 000.000 Liabilities on June 30, „.,,„, 19V> 00.-loOf ■ IJI 401,541 The Appropriation Act, 1911 (Section 17). Unexhausted authority : for raising loan 100,000 Liabilities on -March 111, li) 1 2. 100,000 (liiexhauslecl authority . for raising loan 100,000 Liabilities on .lime 30, IJI. ............... yg (|j) *[)oes notinclude .to pay'oli advances re'eeived lor redomptiou. ol do•C f Includes .someliabilitiep t (as, for instance, somo on account ot Midland Rail way contract) which do not have to U met during tlva current year. . State Coal-mines Account. X £ fialanco on March 31, _ . 1911 ) -■■ -'•• )(l!. Unexhausted aulhonty for raising loan ... -O.OnO ... • 4^,oG! Liabilities on March 31, ;■■ ion .-..• ■"-■ ; i* Dalaucp on March 31, 1012 ...'.....; : : ' •■" 23 ' 4 '' Liabilities on March 31;" • ' ' -." '( 1912 ,

Balance on .Tune 30,191:! ■ 20,101 Liabilities on June 30, 1912 .......V. 31,200 Naval Defence Act Account. • ' ■■■ . £ ■ £, Balance on March 31, 1911 630,530 Unexhausted authority for • raising loan 870,750 • ' , . : — 1,510,280 Liabilities on Mnrch.3l,:,, . ~-,„■',. ..,'..,'. 1912, not yet riscertainable. Cost- of . . cruiser unknown ... ... : ■ ... Balance on March 31, i 1912 ; . 30i;3G3 Unexhausted authority '. for raising loan ' 600,000 — ' 904,363 Liabilities on Mnrch 31, : | 1312, not yet nscertriinable; Cost of cruiser unknown ... ... ~.. Balance on June 30, 1912 389,003 Unexhausted authority for raising loan ... 499,098 '. , . . ' • . —: 889,301 Liabilities on June 30, .1912,.n0t yet ascer- ■ tamable. Cost of cruiser unknown ... ... ; ... Native Land Settlement Accouht., : .■'■■■ £ £ Balance on March 31,. 1911 44,322 Unexhausted authority , for raising loan ... 318,'J00 Liabilities on March 31, IUII ;....• • ■ 171 Balance, on March 31, 1312 : 4;348 Unexhausted authority for raising loan ... 215,500 249,848 (liabilities on. March 31, ' 1912 430 Balance on Juiie 30, • 1912 41,036 Unexhausted authority for raising loan 450,000 491,036 Liabilities on Juno 30, 1912 ...; 2..096 Land for Settlements Account. £ . ,£ Balance on March 31, ' 1911 53,398 Unexhausted authority for raising loan ... 467,000 520,398 Liabilities on March 31, " 1911 2,850 Balance on March 31, ■ 1912 66,010 Unexhausted authority ■ : for raising loan ... 147,085 213,125 Liabilities on March 31, * ■ 1912 2,977 Bivlancß on Juimj !)0, 1912 ...» 34,007 Unexhausted authority for raising loan ... ■ 311.785 345,852 Liabilities on June 30, i 1912 .'..'.. 5,775 Opening up Crown Lands for Settlement Account. £ £ Balance on March 31, 1911 8,574 Unexhausted authority for raising 10an... 45,735 54,300 Liabilities on March 31, 1911 10,376 Balance on March 31, 1912 : 20,086 Unexhausted Authority for raising loan ... 38,750 — 58,836 Liabilities on March 31, 1912 ' 9,582 Balance on Juno 30, .1912 37,427 Unexhausted authority . ' for raising loan ... 80,870 118,297 Liabilities on June 30, . ■ 1912 ' 46,348 New Zealand Statc-Guai'anteed .AdvanceAccount. £ £ Balance un March 31, .1911 ..: 1,527,1110 Unexhausted authority ■ for raining 1uun..;... afl.llo '. ... '■ — .'1.1>211.571 Liabilities on March 31, 1911 :..: tv, Balance on March 31, 1912 ....'.., ...- :«j,UH Unexhausted authority for raising loan.- 1,225,000 1,5G0,ulLiabilities on March :)1, 1912 . 'US! Biilnnee. ion June 30, 1912 59.513 Lnaii-niniie.v. to roccivc 2!U,SH> Uiipxhausted authority for raising loan 1,857,70(1 -2,191,05: Liabilities on June .311, ■ 1912 . : .. .'..... . ■ .71 ■ I draw honourable memb'ers , -altentio'i Iμ Urn mid o>jicrial|v • ti llie coudition u£ the Publio \\oi%i fun l

iiul tlip State Coal-mines Account as at I line :ifl, '1912. o the public debt. i;xih,\xatoi:y tablk. Tho un'-s 1>«111ii: tlclit al (In- end of ho (iiiiiiicial year uiiiiiuiiU-il lo .t8t,:i.)3,!113. I'lio following table shnw.- fur whul pur>os(s the variola amount-, ivi-re bi>r•owed: — C tfaori War 2,:i57.0()U Jefcnro 3,:iu'9,!1.">:! Railway.-; 2C.154.J170 foads and bridge-; construction ami lands improvement 7,210,G7(i Public buildings • 5,6-13.91:! Holograph and telephone lines... l,fiul,7fi" Harbours nml lighthouses 581i,M2 mmigralion 2,477.1 111 S'ew Zealand Slalc-guaranUed Advance-— (Includes transferred liability.) Linul for Settlement" Branch 1i,:i18 1 6.1S Advances to .Settlors Branch... 7,7G7,ttil Advances to Worker* Branch 1,435,931 Local Authorities branch ... •I.StfT.GUII Native Land Settlement Branch •)3li,10l) Guaranteed Mining Advances Branches 5,00.1 link of New Zealand shares... 500.000 \'ew- Zealand Consols 47-1,111 Purchase of Native lands 2,715.217 Tourist and health resorts 1-12,107 Development of water-power • 3,n20 Development of goldftelds and coal-mines : 581,210 State Coal-mines 150,000 [/Wins to local bodies 3,507,000 State fire insurance 2,000 Reserve--Fund securities SOfl.OflO ■icen'ory-pre.servatipn 45,000 Deficiencies in revenue, charges, and expenses of raising loans, increase by conversion, etc., provincial liabilities, and miscellaneous 8,140,367 .-081,353,913 'Includes .£115,515 ntlvancoil for openin? Crown lands, .£70,000 for Ilnuraki Plains settlement, and .£25,000 for Rangitaiki land drainage. By Sections 3G and 37 of the New Zenland State-guaranteed Advances Act, lOO'.i, the amount transferred to the Advances Office is .£17,500,533... The deduction of this amount from tho gross total leaves public ,debt. Opinions may differ as to how much of (he total is «lf-supporting, but. the amounts expended in the construction of railways (.£20,151,970), in tho purchase, (if Native land.* (.£2,715,217), in the oc(|uivement of lands for settlements (JCC,318,p38), are of this nature; and tho amount? spent on telegraph and telephone lines (JSI ,601,707). loans to local UodiM (,£3,507(100), and Reserve Fund securities (.£BOO,[100) miist he considered, as revenue-pro-ducing. Other amounts, such as those expended in pure-basiim tho Bank of New Zealand shares, .£500,000, and for advances to settlers and workers, .£9.203,815, brine in more income than is paid out for interest. The net debt amounted to .£82,193,310, and was inadci up of— Sinking Fund. . accrued. Net debt. .£ .£ £ . debt 66,793,360 Less 1,148,075 65,34-1,08; Now Zealand Stale Guaranteed Advances debt' 17,500,553 Less 711,928 10,818,02 c Total net debt .£82,193,311 Increase in Our Indebtedness. The public debt .was increased by .£),■ 275,791 during the year. The increase: were for—. ■ ■ State-guaranteed Debt— - £' Land for settlements -»0.70( Advances to settlers 792,9« Advances to workers > 471,1E , Local authorities 222.00 C Native-land settlement 254.50 C .Guaranteed mining 5,00t JC2.15G.315 Public Works— • Aid to Public Works and Land Settlement Act, 1910 ' ISI.GoC Aid b> Public Works and Laud* Settlement Act, 1911 450,001] Jlutt Railway and Road,-Im-provement Acts, .1903-5-7-10... 5,190 Government Railways Amendment Act, 1910 ; 33.55 C Miscellaneous— Now Zfnlaiid Consols :Ar:t, 1908 11.8+5 Naval Defence Act. 190U 279,750 Paeroa-Waihi Rqihvay Act, , - . .1903 ;..' H,O"f .Coal-mine, Act, 1008 :... 20.00 C .Scenery Preservation Act, 1903. 5.00 C Increase by conversion ; 12fi,500 - .£1,119,921; redemptionsMaori Lanil Settlement Act, 1905, JC4SQ - 450 Total increase for 1911-12 ,£3,275,791 It is evident that we have had of lato to pay n higher rate,of interest for our loans, and that there is little prospect of tho interest rate falling in the immediate future. A remarkable indication of the increasing value of money is afforded by the rate obtained for new capital issues in London during 1911. This amounted to about JC192,000.000. The average rate of interest payable on the amount of over .£125,000,000 invested in bonds and debentures was .£4 12s: per cent, and the interest on over ,£20,000,000 of preference stock and shares was .£5 15s. per cent. Tt is therefore reasonable io assume that thn rate of interest on olir future loans will rise. Public Debt Extinction. Tho period fixed for the extinction of all our loans is seventy-five years; the animal contributions to the .sinking fund are to be paid out of the consolidated revenue, and the accumulated moneys, until they are required for the repayment of the public loans, are to l>? in-vt-ted in loans to settlers and workers, and to local authorities. Last year, for investment on account of public debt "extinction, there was paid over by the Treasury to tho superintendent of the Advances Office an amount of ~£144,885; for the currant year the amount will be .£149,343. Although this amount is large —and it will grow larger as our obligations grow—the burden is a necessary convenience of our resolution lo provide for tho repayment of all our debts. The burden thus imposed, however, upon the consolidated fund will scarcely be fell, as it involves oniy a slight addition to what was paid out of the consolidated fund before the passing of the Public Debt Extinction Act, WIO. Previously the Treasury paid over to the Public Trustee the amounts required each year as contributions to'lho sinking funds for (he liquidation of the war and defence loans and for the repayment of the moneys raised for loans to local bodies. By the terms of the Act these payments ceased on September 28, 1910, when the total accumulations of the sinking funds in the' hands of the Public Trustee amounted to ,£992.292. The interest thereon which', tinder the Public Debt Extinction Act. 1910, is th be paid into the Consolidated- Fund, was last year .£41,689. Tho amounts paid to the Public Trustee for the last complete year in which they were, payable weTe: For the sinking fund for the war and defence loans, ,£39,950; for the loans to local' bodies' sinkint; fund, .£52,.V>8. Last year! therefore, tliq consolidated fund profited by the 'otal of the three, sums just named—that is, by ,£133,997; while it.had hi provide .£144,88.1 for the public debt extinction fundthat is, the extra contribution to be made by Ihe consolidated fund, in addition to iv'hnr was paid bofoj-e 1910. was less than '.£11,0(10. Moreover. \\\> tn the pre-iMit Hi." cost: of administration has been nil. AfJpr a few years it will. la. fair to'nllov; iin niinnal sum out of the interest earned to be pnid lo Ihe Advances Offirn for looking after and investing the fund-. ; . ; -. advances. TO SETTLERS, WORKERS, AND ■ LOCAL AUTHORITIES. The amounts of the loans paid ovci last year by tho Advances OUire were:— .£ To fpttlcrs 2,17-1,(185 To worker.- :.. . .M3.S-JO : Tn local authorities 571.733 ■ The total advanced -iina the Derjnitincut began business is— ■ • ■ .£■ : To settlers 12.722,1155 T'l worker- J.531,(i»5 To local autuonUvs ,„„.,„ I.IUU.ISi

Tlic total loans raised for each brunch up to March 31 la<-l were:— Settlors 7.747.H51" Workers ■J,:ilS.n:iH« Loral authorities l.aflV.ttOH 'Lino-! uot include (he following moneys received 100 late fur inclusion in balance: on •ici'Oinil of advances to settlers, Ji:>0,000; tu workers, MiO.m. Limns'raised durihs (he past year for the ililfcrimt brunches were— Settlers «3-.M6 Workers 471.1&S Local authorities iii,l)W The liii-iini'Sii of tin- present year will nut be nearly so greul a» thai uf last. \- tin- niiinber of applications made exireilcd Iho funds available, the buard gave pi-erwciicu to loan" or .£51)0 or under, a- required by the Act, and to loans to .-eillei'i for improvement* or lor.purchasing property for personal occupation nitlicr than fur paying off mortgages or buying property tor speculation purposes, Inpayments, of mortgages ami inslalnicMt.- of principal during the year were a> follows:-- • Advances to Settlers , Branch ... 1,018,280 Advances to Workers' Branch ... • 78,851: Tho whole of the repayments were rein, vested, the interest on loans being paid out of interest account. Local Authorities' Branch 10,28! These moneys were reinvested, but capital moneys had to be resorted to to pro. vide a sum of .510,f)78 to make up tl« net loss of this branch on the year's working. The largo sums in repayments now being received will enable tlie more press ing applications for loans to 1m met witli but little borrowed money. If loans an confined, as they have been since lasl April, to applicants who desire to im provo their properties, or to build or ac quire homes'for themselves, and the limii of .£SOO is'retained,-there will probablj not be any-necessity to borrow in IJondor for the office during the present financia year. ~ , • In the course of, say, ten years, the ot lice-should, with its .large ..repayment: and the eontrihutions of sinking funds for which there is of eoilrfe no intcresi to pay, do without loans altogether.