Financial Statement.

Hastings Standard, Issue 448, 12 October 1897, Page 2

Financial Statement.

The Financial Statement was laid on table of the House this afternoon by the Colonial Treasurer, the Right Honorable E. J. Seddon. Mr Speaker,—ln laying before Hon. Members the financial statement of this Diamond Jubilee year of our Most Gracious Majesty's record reign it is a matter for sincere congratulation and rejoicing for me to announce that we still retain a buoyant revenue and healthy exchequer and that the soundness of practising strong finance has been abundantly demonstrated. I have, however, a word of caution and warning to gi^e—Ame!v, that we are now enjoying fairly'prosperous times and we must not rush into a lavish and increased expenditure and suddenly become oblivious of the past depression and financial difficulties. The lessons taught by past extravagance followed by hard times should not be forgotten. Prudence and strict economy exercised in prosperity will surely obviate the necessity for drastic economies should there be a recurrence of adversity. In the memo, which I had the pleasure of laying on the table of the House during our last short session I endeavored to place before members as close and correct an estimate of the financial result of the year just closed as was possible with the time at my disposal. It is satisfactory to find that my estimates were very near to the actual figures of 1895-96. I estimated the surplus at .£340,000. The actual audited results show £354,285. We are, therefore, some £14,000 better off than we anticipated. The figures producing the surplus are as follows: —Receipts during the year, £4,798,708; expenditure, £4,659,980; receipts in excess of expenditure, £138,728 ; balance brought forward from preceding year, £215,558 ; surplus at the end of 1896-97, £354,285. I have already remarked (in my memorandum) that the surplus would have been still more substantial had it not been for the necessity to charge three half-yearly payments of interests during the past twelve months in respect of the million and a half advances to settlers loan; these entries were necessary in order to make our books agree with the actual payments made in London during the financial year. Receipts during 1896-7. The Customs duties were estimated at £1,670,000. The receipts amounted to £1,818,972 or £148,972 over the estimate. From stamps we have received £38,337 and income tax jointly was £3i5b,000. The actual receipts amounted to £377,814, giving an increase of £178,183 over the estimate. The beer duty sliows an excess of £6787. Registration, marine, and miscellaneous show increases totalling £10,133. The railway receipts have turned out wonderfully weil. The estimate was £1,200,000, while the actual revenue was £1,287,140, or £87,140 in excess of the estimate arising from the large movements of our exports and imports and an extraordinary increase in the passenger traffic showing in a most marked manner the improved condition of the colony. The territorial revenue was very carefully considered, and I am glad to find that our estimate not only reached but exceeded by £2954. Summarising these figures we find that all estimates of revenue have been exceeded, and that the total excess amounts to £312,998, including a small sum of £63 for arrears of Property Tax. Compared with actual receipts of preceding year the revenue of 1897 shows an increase of £327,047. EXPENDITURE. Turning now to the expenditure side of the account it will be noticed that a net saving of £22,198 was effected in the estimated expenditure. This saving would have been increased by £26.000 had it not been necessary to assist the Advances to Settlers office in payment of interest upon the million and half loan borrowed for the purpose of making grants to the settlers upon mortgage. £1404 was over spent under special Acts and £1,908 was paid over to local authorities in excess of estimate of amount payable in respect of their endowments. £11,208 was spent in excess of the votes (including £8,313 for railways) and £3189 without appropriation. £26,000 was also temporarily paid over to the Advances to Settlers office. As already stated the amount underspent is £65,907. Under the annual appropriations there is an increase of £114,246, but eliminating the increased cost of education, which is fixed by act, and the working expenses of our railways, the increase is only L 73,195, and of this sum the services rendered to the public through the Post and Telegraph Departments are responsible for 121,324. Extraordinary services such as the census, returns, £16.000 ; expenses of the general election, L 18,700 ; cost of licensing polls, L 5500; preliminary expenses connected with Government valuation of land L2OOO ; balance of the cost on new cable steamer Tutanekai, L 29,600 ; expenses in connection with the Brunner disaster, LIOOO. These represent a total of L 68.200, which shows that the ordinary services of the Departments have been carried on with greatest economy, and even at less expenditure than the preceding year. Of the balance which the Department is unable to take up in all probability we shall avail ourselves of the London market to float the amount in the shape of 3 per cent unsubscribed stock. A LOAN. It will be necessary to raise the balance of the loan (L 250,000) very shortly, and I am of opinion that the Post Office should take up a portion of the same, particularly seeing that before long the maximum rate on deposits will have to be reduced to 3 per cent., which is the rate ruling at the banks. LOANS TO LOCAL BODIES. The severe disasters which have recently overtaken the thriving districts of Hawke's Bay, Rangitikei and other districts call upon the Government to make special efiort to afford facilities in the way of assistance of the local authorities who will have to repair the damage caused b.y the late floods. With tins object in view I intend to ask for authority to so extend the Government Loans to Local Bodies Act as will enable the Government to grant loans for somewhat larger sums than are therein allowed, the usual safeguard of the Act being carefully retained. RAILWAYS. The remarkable increase in ihe traffic returns in our railways during the yeatjjf a very pleasing feature indeed, the in- " crease in revenue on the previous year being L104,86Q. The expenditure increased to the extent of L 33.077, ths excess of revenue of over expenditure for the year being L 510,392, or L 71,783 more than last year.