THE PUBLIC ACCOUNTS.

Marlborough Express, Volume XLIII, Issue 143, 15 June 1909, Page 2

THE PUBLIC ACCOUNTS.

POSITION AT END OF FINANCIAL YEAR. ' REQUIREMENTS TO 31st .i OCTOBER. ,■ f • Following is a menioraiiciv^.^y the Pdo-ht Hon. the Minister ' or i?i nance < (Sir J. G. Ward), show mg tlie posi _ tion of the public f^ceminta on the 31st March, 1909, a n& requirements to the 14th October, 1909: — As Parliament, will shortly prorogue &>wl t\ie usual Financial Statement will *not ho delivered until it te&ssemhAes, hon. Members are no dwibt desirous that I should place fcfeforo them an outline of the position of the finances of the Dominion. Dealing first with the

PAST YEAR, j the results of which have already been made public by the publication of the public accounts in the Gazette as required by law, it may not be out of place to make a few comments on them for the information j of hon. Members. The revenue for the financial year was estimated at £8,985,000,- and the expenditure at £8,878,346, the anticipated surplus, after bringing forward the balance of £767,849 from the previous year and transferring £800,000 to the public works fund, being £74,503. An analysis of the figures shows the actual surplus for the year to be £184,321, or £109,818 more than anticipated. The surplus of the previous year was £767,849, but for purposes of comparison there must be taken into consideration the increased expenditure and relinquished revenue which were foreseen and allowed for in the Budget of last year. The recurring large surplus year after year caused the Government to make concessions in Customs, railways, etc., amounting to about £600,000, and in view of those reductions it could not be expecbed that such large credit balances would continue. REVENUE. The- revenue for the past year amounted to £9,001,185, an increase of £16/185 over my estimate, the respective amounts being:"— Estimate £8,985,000 Actual £9,001,185 Excess £16,185 Comparing the revenue with that of the previous year, there is only a difference of £54,761 on the total receipts, the figures being: 1908-9 £9,001,185 1907-8 £9,055,946 Decrease ' ... £54,761 The revenue for the year exceeded he expenditure by the sum of £215,----672: Revenue £9,001,185 Expenditure £8,785,513 Excess of revenue £215,672

Dealing with the various heads of revenue, Railways contributed £2,----918,507, as against an estimate of £2,835,000 and an actual receipt of £2,765,397 in 1907-8, the receipts being better than the estimate by £83,----507, and an increase on the previous year of £153,112. The railway returns keep up remarkably well, as it must be borne in mind that the redaction in fares and freights has been set down at £160,500 per annum. Stamps: Last year brought in £1,----591,328, or £18,328 better than the estimate, and an increase of £40,394 on the previous year's receipts—£l,----550,934. The returns from Land and Income Tax reached nearly £926,000, the exact figures being: Land tax £604,- ---' 901, income tax £,321,044, total £925,945;" or £45,945 in excess of the estimate, and £83,194 better than that of 1907-08. Miscellaneous Revenue is responsible for bettering the estimate by £15,210, the amount,, received being £264,210, as against an estimate of £239,000, and £45,868 in excess of the prevKHis year's receipts. Registration and other fees show an increase on the estimate of £2061, and Marine brought in £3815 more than anticipated. The Customs revenue, which, I may say, has occasioned me more anxiety than any other class of revenue, did not come up to the estimate by £148,----752, the total amount collected for the year being £2,801,248, as against an estimate of £2,950,000. This was due to the large falling-off in the import values for the year 1909 as compared with a steady increase for some years previously, the figures for the last three years being: 1907 £15,323,127 1908 £18.193,808 1909 £16;750,065 This falling-off, no doubt, is in sympathy with the decrease in value of exports (now, I am glad to say, showing an improving tendency), which for the same three years were: 1907 ... £19,531,614 1908 £17,868,030 1909 £17,009,531 Another contributing factor is that owing to financial disturbances in the commercial world New Zealand merchants reduced their imports and traded on existing stocks. Moreover, tho abnormal increase in importations during 1908 in anticipation of the coming operation of extended preferential tariff, which took effect from the 31st March of that year, led to the accumulation of large stocks, which had to be cleared off. These special causes for the reduction of the Customs revenue are, however, temporary. Traders are already reporting considerably improved business, and I am of opinion that importation will assume much larger volume without anything in the nature of over-importing, which from every point of vieiv is not desirable. I feel justified in saying this from the fact that we have had one of the best seasons known in the history of New Zealand. The result of this is demonstrated by reference to the exports, which for the five months ended 31st May, 1908, amounted to only £8,713,591, as compared with £10,630,163 for1 the corresponding period of 1909, the increase being £1,816,572. This shows largely increased purchasing power, which must favourably affect our imports. The decrease in duty is mainly apparent in articles of general merchandise liable to ad valorem duties. Those articles which can be regarded as luxuries—such as spirits, cigars, cigarettes, tobacco, wine, ale and beer—show little difference. There is also another indication of a decided improvement in the financial outlook, the excess of deposits in the Post Office Savings Bank over tho withdrawals for May being £64,115. There was a slight falling-off in the beer duty, and there was also a drop under territorial revenue of £18,143. The revenue receipts for the past five years are as follows : — 1904-05 £7,282,870 1905-06 £7,584,359 1906-07 £8,399,075 1907-08 £9,055,946 1908-09 ... £9,011,185 Jt jnUis|i be remembered, when com- '

paring the ngures f or the financial year just ended w i t h those of the Prevlo"V year, that the revenue has bee" 'out down a good deal within the | ?aF \c two years by remission of Cusjms duties, railway concessions, abolition of the sheep tax and transfer ot Crown lands as national endowment; but notwithstanding all abatements the revenue for the year closed £600,----000 better than for the year 1906-07. The total increase during the last three years is £1,416,826. EXPENDITURE.

Having completed the review of the revenue, the expenditure of the Consolidated Fund must be next considered. The amount estimated for the year was £8,878,346, to which should be added the railway surplus revenue of £83,607, which, by the Public Revenues Act, is treated as an additional appropriation. The actual expenditure was £8,785,513, or a saving on the votes of £176,340, the utmost economy having been exercised during the year in order to keep the expenditure within the votes. The expenditure was as follows: — Amount estimated: Permanent charges £3,210,343, animal appropriations £5,668,003, additional appropriations, railways £83,507, total £8,961,853. Amount expended: Permanent charges £3,210,030, annual apropriations £5,575,453, total £8,----785,513—a saving on appropriations of £176,340. On the expenditure side of the year there is an excess over the preceding year of £571,548. Of this amount interest charges were responsible for £71,000 and old-age pensions £11,500. The issue of debentures for the construction of railways, for roading and improving Crown lands and grants to local authorities necessitates increased interest payments. The post and telegraph services absorbed nearly £100,000 more than the previous year; working railways £157,000; lands and survey £60,000; education required £26,000; the cost of the general election, including printing and preparation of rolls, was £44,000; licensing polls £12,800; defence £19,----000; public buildings £20,000; agriculture £20,000; police services £12,----000, and industries and commerce £10,000. A satisfactory feature of the year's transactions was that £800,000 was transferred from the revenue to the public works fund. The floating debt of the Dominion was reduced during the year by the redemption of Treasury bills to the extent of £150,000, the amount left outstanding at 31st March being £250,000, and no less than £450,000 having been paid off during the last three years. They had practically become a permanent debt, but the Government are determined to gradually reduce the amount. THE GENERAL RESULTS of the year's finance may be summarised as follows: Balance brought forward on Ist April, 1908, £767,849; receipts during the year, revenue £9,----001,185, other receipts £800, total £9,001,985; expenditure during the year, appropriations £8,785,513; excess of receipts over expenditure £216,472; transfer to public works fund £800,000; balance at 31st March, 1909, £184,321. PUBLIC WORKS.

During the year the sum oi £2,169,----278 has been expended on public works, as against £1,881,564 spent in the previous year. The principal items of expenditure are as follows: Railway construction £713,000; addition to open lines £390,000; roads £469,----000; public buildings £285,000; telegraph extension £163,000. The posi-

\ tion of the Public Works Fund on . 31st March was as follows: Balance from last year £152,573; receipts, \ loan money (including premium) £1,----604,094, transfer from revenue £800,----000, other receipts £1610; total £2,----558,267. Expenditure under appropriations, etc., £2,169,278; other charges £5280; total £2,174,558. Balance on 31st March, 1909, £383,709. Balance of loan money to receive £50,----000. Available public works moneys to start the current year with, £433,----709. A statement of receipts and expenditure for the financial year attached gives full particulars of the various accounts and renewals. The amount which was due during the past year was £3,133,238. The greater portion was renewed for a longer term. ' The result of the renewal is that the interest charges are reduced. LOANS. In addition to the authorities already in force Parliament last year authorised the raising of £1,250,000 for public works and £1,000,000 for the acquisition of the Wellington and Manawatu Railway. Nearly the whole of this money was raised in London on favourable terms, our brokers having made the necessary arrangements far placing these loans with a minimum cost to the Dominion. Other moneys were obtained for ad- j vances to settlers, land settlement, for loans to local authorities and other services. | Government loans to local bodies: Applications from local authorities for loans were much larger than usual, consequent on the difficulty in obtaining money at a reasonable rate of interest elsewhere. Debentures for the amount authorised by law (£250,000 per annum) were created and issued during the year, of which £192,136 was paid over as loans to local bodies and £54,713 for roads to open Crown lands. Wellington and Manawatu Railway: The purchase of the Wellington and Manawatu Railway, for which £1,----000,000 was raised, was effected in the manner authorised by the Act. The final payment of the purchase money was made on the due date, and the whole of the transaction was completed to the mutual satisfaction of both parties. Land for Settlement: During the year £372,245 was spent on the acquirement of estates. There was outstanding on the 31st March last available borrowing oower of £416,650, which, with £500,000 authorised for this year gives power to raise £916,-

550 for the acquirement of land for settlement. Advances to Settlers and Workers: The sum of £1,493,835 12s has been expended in advance to settlers and £298,184 6s in advances to workers; a total of £1,792,019 18s actually paid during the year. This is a record for . the Department, the increase on the previous year being £390,625. Figures show that there has been a continuous increase in the number of j applicants. The advances office will S |do its utmost to meet the require- , ments of borrowers with the funds at j its disposal. The amount of advances ', paid over during each month of the ' year shows that the full average has ; been maintained throughout. Over j £5,000,000 has been raised by Government investment .mortgage on 31st March, 1909, for advances to settlers and nearly £500,000 for advances to workers. There is still authority to •raise in behalf of advances to settlers £841,200, being the balance of the ! £6,000,000 authorised by the Act, ' which, with the annual repayments from mortgagors will enable the Department to make further advances during the present year to the extent of £1,500,000. There is "also authority under the Act to borrow £500,000 for advances to workers during the current financial year, and this I propose to do. I am sure it will help workers to get homes for themselves, and give considerable employment to the building trade. PROVISION. FOR RECESS. The Public Revenues Act provides for the carrying on to 30th June; after that date no payments can be made for any service until%further provision is made. It is therefore necessary to provide for carrying on the public services till Parliament meets again. I propose to ask the House to extend the provisions of the Public Revenues Act to the 14th October next. The Act contains a safeguard that no payment shall be made for any service other than those for which provision is made in respective Appropriation Acts, estimates or the preceding year or in excess of scale therein set "forth. Authority to increase the amount to be spent under the head of unauthorised expenditure has also to be asked for. It has been found that with the restrictive provisions of the Act the amount allowed is insufficient for all such expenditure, as well as that under extended appropriations required by law to be included in the Estimates laid before Parliament in the next session. I estimate the cash issues out of the ordinary revenue account for the period Ist April to 14th October. at £4,600,000. To meet this I anticipate revenue receipts to the amount of £3,900,000. In so estimating I feel it desirable to keep on the safe side, which, with the cash balance to credit on Ist April, 1909 (£387.163) will five a total available for ways and means of £4,284,000, or £312,837 less than I estimate expenditure for that period. This will be' met by a temporary issue of Treasury bills, which I hope to pay off before the end of the financial year as the incoming revenue will permit, the largest portion of which comes during the last six months of the year. Reductions m public expenditure to the amount of about £250,000 per annum should assist to ensure an equilibrium between expenditure and revenue, and I hope that the present reduction in revenue will be fully provided for. As to the

PUBLIC WORKS FUND, the balance on 31st March, 1909 including advances in the hands of Government officers and loan money to receive, was £433,709, an amount insufficient to carry on public works beyond the present month. I therefore propose to ask Parliament for authority to raise £1,250,000, to be expended in ■reproductive works. This will enable the Government to provide for the employment over the winter of men at present out of work who are willing to accept same. To enable the equipment of lines of railway to be more efficient, £250,000 is included in the £1,250,000 proposed loan, as increasing calls for further rollingstock and equipping lines require this amount. I am also including in the amount of loan asked for the sum of £100,000 to be expended in the purchase of Native lands, as it is desirable in the interests of the people to secure these lands. The funds for the duplication of lines are practically exhausted, and as it is desirable to push on with necessary works already authorised, additional borrowing power of £75,000 will be asked tor. ho far as other separate accounts are concerned there are sufficient ways and means to carry on with.