FINANCIAL STATEMENT.

Marlborough Express, Volume XXXVI, Issue 158, 9 July 1902, Page 4

FINANCIAL STATEMENT.

I «. I Tin: Financial Statement was delivered I in the House last evening by Sir Joseph » Ward, Acting Colonial Treasurer. The j following is a precis:— j Owing to the presence in London of my colleague tho Right Hon. the Premier and Colonial Treasurer as tho cuost of the Imperial Government, the duty of preparing this year's Financial Badget falls to me, and I trust that in placing the position of the colony before honorable members (hey will give me credit for an earnest desire__tojft|S' fairly and impartiall^itris^umeces- | «iry for meJ^^SyHhAt in temporarily jJSiEilig-fif) the work of my distinguished i chief I am 'undertaking no light ta^-k, but F approach it with confidence, relying on the consideration and courtesy which have always been extended to me by honorable members. I The year has been an eventful one I for the Empire* Tho South African j war has been ended upon terms satisi factory to all parts of llic British I dominions, ami the generous consideraI tion to our farmer foes will, I feel su"f>, be justified by ihe event in hastening the time when they will forget tho bitterness of tho struggle and j become loyal, prosperous and coutentod subjects of the Crown. The enthusiastic manner in which the people of New Zealand had set theraselres to celebrate the Coronation was unhappily marred by circumstances with which ail are familiar and upon which it is unnecessary for mo to dwell further than to voice the deep sorrow and regret feit throughout New Zealand. Happily Mis Majesty is now reported to bo progressing favorably, indeed the latest announcement is that he is out of danger. His complete recovery will bo heralded by tho people of Xew Zealand with pleasure equal to that felt in any other portion of the great Empire over which he rules. KF.VKNUK FOR 1901-2.

The revenue proper of last year exceeded six millions, the highest in the history of the colony. The actual fieurea are £6.053,070 Is Gd, or £"34,451 in excess of the estimates, ;»ml £200,301 9.9 fid in excess of the revenue received during the year | ended March 1901. This has been obtained not only without extra taxation, but in spite of largo concessions made in Customs duties, in railway rates, and in the adoption of penny postage of letters. Such expansion is, I think, «.u evidence that our people :irc prosperous and our trade is flourishing. The Customs exceeded the estimate by £01,11G; raiiways by £109,288; and, notwithstanding the gift to the colony oC tho penny postage, stamps, (which include the postal revenue) by £5,171. Comparing the actual rovenue of last year with the figures of the preceding year, Customs show an increase of £205,254, railways of £118,847 and stamps of £4,736, The land tax and income tax receipts for the year exceeded the estimate by £7,835 and £4,397 respectively, and the receipts of the previous year by £18,252 and £5,555. The only bead of revenue which did noi come up to the estimate or to the r»revior.s year's collections was the territorial revenue, which was £20,380 inucr the estimate and £20,584 less than the amount received during the previous year. This is accounted for ny a falling off of receipts from cash land sales. Further receipts were brought to credit as by law provided, namely, tr«7,itoO, proceeds of debentures issued against the increases to the sinking ;n-.d tor the current year ; and £42,708 ■Tn tiil representing recoveries of expenditure charged during the preceding veir. principally in connection with ■he cost of our contingents in South -\fricn. The total receipts from all sources reached £0,152,839, as compared with £s,<X)n,9lC of the previous year. ! expenditure. Onr exremllture last yea? was abnonr.rUly largo, reaching £5,805,912, or 1:210,21] in excess of tho expenditure »f ibc year 1900-1 ; but £2,787 was in ifr. ? e*t<mates to which the expenditure rel'ite?. Ihe principal increases in the expenditure of list year as compared nitli the previous twelve months -xrs: — Interest and sinking fund h.xc risen i-y £58,323, which must be expected as long as it is necessary to -aiss loans for the carrying out of the ;»nblie works policy. Our old-age pensioners cost ns £10.561 more than the previous year. There was, however, a saving of £12,748 in subsidies for all scrvice-5. The expenditure under permanent appropriations increased by £A2,445 over the previous year. In the Colonial Secretary's Department the expenditure increased from £110,555 a £221t,7i7, giving an excess of £lKMt>2. The taking of the census ilso increased our expenditure by 1" 18,000, and tho increased volume of Parliamentary and departmental work caused the printing and stationery dopirtrnent to draw upon us for £1000 extra. The two new Departments— Public Health and Tourist—more than dii-poHO of the further extra cxpendi- ; uvc. In tho Department of the Postmaster<rcno?sl nn increase of €47,453 is to be found, arising from the continued general ox pension of tho postal and telegnphie business and tho introduction of penny post. Education is responsible for £57,579 increase. The purchase of land for experimental farms <;id iljo erection of buildings thereon «nd the cost of their np-kop involved % ].irg.-> expenditure. Th>.' working railways arc answerable ! f«»ran increase rf £135,009 over last year. This addition has to bo incurred iin order to cone with tho very largely tjcrcased traffic, to meet which some 445.G00 extra train miles had to bo run. The vist of the I?oval party necessitiiod a lirge expenditure on the rail:vay ar.r.nnt. Twenty-threo miles of o* lircs wore n'Ulod and additional ir.iin faeililifls wore introduced for the ennifort and convenience of travelim s. The increased expenHluieunder the uTiuual appropriations of this year over iast amounted to £353,760. Adding (host* List figures to the £62,415, in- | 'Toaso undur tho permanent approI print ions that gives £116,211 of in'.r^r.sci exptndituro. 1 r.r.-*vi,r* at the er.osi-: or 190 i-2 f The Inlance brought forward to commence tho year amounted to £532,564, ijid the excess of revenue over expenditur for the twelve months resulted in an additional sum of £256,924. These Minis together amounted to £789,483, frrtrn which we liavo to deduct the fr.ui-for of £500,000 to the Public Works Fund and the £19,000 for dor l-cMiiures rptleemsd, leaving £270,188 ns a surplus at the close of the yoar, which I am anre honourable members will agree with me in thinking is an cr<t j'-oii;ip'y satisfactory result. iTiiur v/or.KK j r.vi). Tho Minister for Public Works is Jcsiron-i of present ing his annual statement as early as possible, and will (herein give you tlio usual details of the cm iomiifmc out of the moneys at ctcdii of tl.is fund. During tho year wo -efeived £1,000,573 from tho sale of debentures under tJio Authorising Act of IOUO, and £l t (Ki2,()G(i from the s;»Jo «f stock and debentures issued u'u?cr the Act of 1001, besides tho half t-iii;< n irr.nfcfcm-d fr«im tho Consolidated I'nnd. ainounting to £ir.J5 I2< 2d were received in conncc tion with the Kliesmerc and Forsyth reclamation and Akaroa reclamation trust. Those ficures, added to tho balance brought forward at tho commencement of the year, amounting to

£232,515, produced available ways and means lor the year of £2,797,31?.

The ordinary expenditure amounted to £2,143,252. £200,000 in respect of advances obtained during the preceding year were paid oiT, thus leaving a balanco in the fund at the close of the year of £45J,059,?which will be supplemented by tho balance of the million loan to be received during the current year, roughly estimated at £100,000.

LAND FOR SETTLEMENTS ACCOUNT

Transactions were not very numerous. £324,900 of debentures were converted into 3 per cent.^ ingcribQ^ til res were I paid off.

LOANS TO LOCAL BODIES.

The transactions within this account have been numerous and large. Local authorities have been anxious to avail themselves of the very low rate at which they can obtain loans for public works, and a glance at thy account will show how freely advantage has been taken of the opportunity of obtaining loans at tho low rate of 3i- per cent, including sinking fund. Up to the 31sfc March the total amount of debentures created and issued and carried into this account was £1,744,100, and the total disbursements have boon to local bodies £1,347,028, to the Lands and Survey Department £314,335, and to tho Public Works Fund £89,500, in exchange for debeutures under " The Roads and Bridges Construction Act, 18S-'." Applications for loans under the Public Works Act, 1900, for drainage, and sanitary works and also under the Slaughtering and Inspection Act, 1900, for the construction of abattoirs are constantly being received, tending very materially to swell the amount. It becomes necessary to borrow in order to provide loans authorised by theso Acts. The balance at the credit of Loans to Local Bodies on 31st March, 1901, was £27,933. Debentures for £213,200 were created and issued during the past year, and refunds of unspent balance grants were received, amounting to £2107.

THE PUBLIC DEBT.

The gross public debt on the 31st March, 1901, was £49,591,245 ; on tho 31st March last it was £52,966,447. Tho net public debt on theSlst Mai eh, 1901, was £48,557,751, and on the 31st March last it was £51,837,631, or an increase of £3,279,880 for tho year. The figures for the year were abnormally increased by the million really belonging to the preceding year's transactions, and by the necessity for providing money to pay for the purchase of lands acquired under the Land for Settlements Consolidation Act. The increase may be set down at a little over £1,800,000.

It cannot be too often emphasised that we must take into consideration that our national debt is added to every year by loans which are of a directly remunerative character, and that the interest payable in respect of them is immediately recouped and not made a burden upon the taxpayers. In this connection £500,000 of: the loan was obtained for the Advances to Settlers' Office, £213,000 for Loans to Local Bodies, £897,150 to acquire lands for close settlements, and £8935 for deposits in the New Zealand consols. These loans, which do not impose a burden on the taxpayer, amounted to no less a sum than £1,519,285. Of this sum £340,000 were used to pay off advances previously obtained. £2,250.----000 were raised under the aid to the Public Works Loan Acts of 1000 and 1901, and £200,000 of tho previous advances were paid off, £77,000, proceeds of sinking fund accretions debentures, were obtained, and the debt was lurther added to by £7915 arising out of various conversion operations. £25,000 of debentures, issued under the Aid to Public Works and Land Settlement Act, 1896, fell due on the Ist February last, and were converted into 3 per cent, inscribed stock.

Our loan transactions last year were heavy, for we had to bring into the year 1901-2 loan moneys amounting to one million which really ought to have Le>n raised in time to bo included in the transactions of the year 1900 1.

Under the authority of the Aid to Public Works and Land Settlements Act the Government determined to place upon tho London money market one million of the loan so authorised, together with half a million authorised by tho Government Advances to Settlers Act. Applications were invited by the Bauk of England in November last for the purchase of the 3 per cent, stock to the amount of £1,500,000, the price of issue being at £95 per cent., and the first dividend to be for a full six months, interest payable on Ist of April. The loan was underwritten at the market fee of 1 per cent.

With the advent of peace I anticipate a much easier money market. The prices of our stock in London have already gone up appreciably, and when the Imperial authorities have placed their next loan I am of opinion that the rates for money will drop. From these circumstances I have discontinued the issue of 4 per 'cent, debentures over-counter sale?, and am sub stltuting a 3J per cent, rate instead. Of course, this rate of interest will not be so popular and diminished sales may possibly result.

ADVANCES TO SETTLEUS

The business done during tho past year was a little less in volume than in tho previous year. For the sixth year in succession the Department is able to say that on the 31st March last no .suai of either principal or interest was outstanding in respect of the year ended 31st March previous, and on the same date (31st March last) it had no properties on its hands, fcince the establishment of tho office a sum of £96,000 representing the 1 per cent Sinking Fund has been paid to the Public Trustee to provide for the re demption of loans forty-three years hence. There has also been paid during the past year to the Public Trustee a sum of £23,010 to the credit of an Assurance Fund (the balance of which is now £43,000) to provide against losses, of which none have yet been charged to the fund. The cost of raising loans has been written ofl. to the extent of £30,000 out of profits.

VALUATION OV LA.ND DEPARTMENT.

The operations of this Department, round which a very fierce light generally shines, have been continued during the year, ajtd the time is now within measurable distance when tho values all over the Colony will have been dealt with. Reference to a gazette issued prior to the 31st March will show tho districts which were revised last year. During the coining year it is intended to devote attention chiefly to the large cities and towns.

The amounts chargeable to local authorities have been somewhat reduced.

THE MAORIS.

The social condition of the Maoris is improving, and their villages have been brought under inspection regulations. Large areas have been transferred to tho Maori Councils for administration.

LANDS.

Eighteen estates containing 83,023 acres were thrown open for selection, with the result that G9,929 acres were selected by 230 persons, the principal estates being the Hatucna and Wangatoro in Hiwke's Bay, and Glenham in Southland.

Tho number of tenants under the workmen system shows that there are now 2033 occupying 380,529 acres, and pay £10,037 annual rental. Land for settlement has ftevolopod considerably, 2159 .selectors having now taken up 1,094,080 acres, and the amount collected is £427,138. Tho reports of tho land officers testify to tho general improvement and. in-

creased productiveness of the Crown tenants.

The Government are considering the question of conserving the forests.

PUBLIC ILEALT!u

Although not able to prevent the occurrence of plague, its area has been circumscribed, and the provision for hospitals for infectious diseases put on a sound footing. It is hoped that parents will allow their children t<j4)£ vaccinated, and thus prevent; ~^qq j n . troduction of strmU-^Sx^'when assured of U&rffirfitfbt the lymph.

A systematic examination of foodstuff.s is now being made, and negotiations are being made for the purchase of land for sanitoria for the troatnient of consumptives at Cambridge, and another projected place in the South Island

Tho tourist and health resorts of Rotorrto, Hammer, Mount Cook, etc., hnv been placed under the control of thi.; Department,

OLD AGE PENSIONS.

The estimated amount for old age pensions was £215,000, while the amount actually required last year was £207,-! SS, and £215,000 will meet all requirements this year.

LAND AND INCOME TAX.

The revision of land values resulted in ;ia increase of £12,000 in land tax receipts. I estimate this year's re venr.e ab £300,000. I place the increase of the Income Tax at £6000, rai.-.ing the estimated receipts to £185,----000, which, with tho £300,000 Laud Tax, makes a total of £485,000.

MINING.

f}old mining continues to make stoidy progress, and dredging has added its quota to tho wealth of the Colony. In accordance with the deciaim of Parliament last session State cor.l-mining has been carried on on the property of the late Westport Cardiff Cord Company and has proved satisfactory.

THE MARKETS.

A trade representative has been appointed, and is visiting South Africa, the United Kingdom, India, China and Japan to report on the markets.

Arrangements have been made for weakly reports of prices current to be cablocl direct from London to the Do partment of Industries and Commerce.

The House will be asked to make provision for three trade representatives—one in South Africa, one in Groat Britain, and one in Australia.

RAILWAYS

Substantial progress has been made wi'h railway construction, the unexpended balance on the vote being only £813. The amounts expended are:— North of Auckland, £27,545. Main trunk lino, £155,979. Blenheim-Waipara, £48,382.

Otago Central, £93,779.

The incroaso of traffic on the working railways has been unprecedented, and the Government has decided to make further reductions upon wool freights and passenger faces, dairy produce and artificial manures, representing a reduction, in rates of £40,000. After 50 rnile3 fares will be reduced both for fn-it and second class by one farthing per mile, and a further reduction of |d per mile over 100 miles.

BUSH SETTLEMENT.

In order to assist bush settlement *a bill will be introduced providing that af:er the first half year's rent selectors will not be called upon for a period of from two to four years, according to the expenses of clearing.

FUTURE FINANCE.

The concessions made are as follows:—Railways £510,000, mortgage tax £25,000, Customs £738,000, post aod telegraph £181,000; a total of £1,494,000. The total estimated expenditure out of ordinary revenue is set down at £5,987,063, which is £91,149 in excess of last year's expenditure, the principal item's being interest and sinking fund increased by £89,000, permanent charges under various accounts increased by £26,000 (including naval contribution); £32,500 oil age pensions; £1000 subsidies to local bodies.

There is likely to be a saving of £5000 in hospitals and charitable aid, and £2000 for the Westport Harbor Board on account of its endowments, £2000 on thirds and fourths. There is also the necessity of; providing £25,000 for tho expenses of general elections. The Postal and Telegraph Department require an additional £14,000. For education an increase of £27,000 is asked for. Working railways requires an increase or £19,000, and £14,000 covers the excesses in other departments.

I estimate the gross expenditure for the year at £5,987,063, and the gross revenue at £6,026,000. With the balance of £270,488 from last year's this leaves a total available of £366,925.

The Government will ask the authority of Parliament for a loan of £1,750,000; to be allocated—for the construction and completion of trunk and other railway lines, £750,000 ; roads, tracks and bridges, £450,000 ; for rolling stock and permanent ways, £450,000; for developing goldfields, £50,000. The loan will be locally borrowed if possible, thus insuring the retention of the interest in the colony.