THE ANNUAL STATEMENT.

Northern Advocate, 24 September 1919, Page 3

THE ANNUAL STATEMENT.

REVENUE INCREASE.

OVER TWO MILLIONS.

In Committee of Supply of the House of Representatives yesterday afternoon, the Financial Statement was presented by the Hon. Sir James Allen, X.C.8., Minister of Finance. The aggregate phases were covered in the Minister's introductory reremarks, as follows:-—

Mr Malcolm, —I have the honour to place before you the financial position of the Dominion, and to offer for consideration by honourable members proposals for meeting the normal requirements of government as well as the heavy financial responsibility which has devolved upon this Dominion owing to the war, now happily brought to a victorious conclusion. It is a matter of great satisfaction to be able to inform honourable members that the anticipations for the financial year 1918-19 were more than realised, and that the year's operations resulted in a considerable surplus of revenue over expenditure.

Contrary to expectations, revemu' from practically all sources substantially increased during the year, notwithstanding the interruption of trade and the difficulties of overseas transport.

'From the .statements submitted it will be observed that the total re venue for the year ending 31st March, 1919, amounted to £22,352,372, an increase of £2,146,150 over the previous year, or £2,167,172 in excess of

the estimate. The expenditure for

1918j19 showed an increase of £3,« 553,311 over that of 1917-18, or £1,119,478 below the amount appropriated, a fact which indicates the prudence and economy exercised by those entrusted with the administration of State services during the most difficult period in our history. The main items of increased expenditure were on account of interest and sinking fund on war loans, war and other pensions, and charges arising out of the recent epidemic,* and the expenses of the trading departments, which" were largely increased owing to the advance in the cost of materials and in wages. SURPLUS. It is my pleasing duty to announce that the surplus for the year amounted to £3,678,773. It is arrived at as follows:— Revenue, £22,352,372. Expenditure, £18,673,599. Surplus £3,678,----773. Add surplus at the end of the financial year 1917-18, £11,560,788. Total accumulated surplus, £15,239,----661. - ; ....^j PUBLIC WORKS FUND. Although expenditure upon public works has necessarily been very much curtailed, essential services have .been provided for, and a total amount of £1,207,921 has been expended. Balance brought forward on Ist April, 1918, £295,540. Receipts: Loan money, Finance Act, 1918 (No. 2), Section 29 (aid to Public Works, £360,000; Finance Act, 1917, section 77, other receipts, £13,580; total, £1,098,580; grand total, £1,394,120. Expenditure: Under appropriation, £1,207,482; other expenditure, £439; Total, £1,207,921. . Balance at 31st March, 1919, £186,----199. REDEMPTIONS AND RENEWALS. Excluding our liability to the Imperial Government for war expenditure, the total debt falling due during the year amounted to £1,705,865, and of this amount £1,448,850 was renewed, £169,165, was redeemed with funds 'borrowed from the Post Office, anil £87,250 was provided by departmental funds, leaving a balance of £600 representing unpresented debentures. CONVERSIONS. During the year 105 investors took advantage of the conversion scheme authorised by the New Zealand Inscribed Stock Act, 1917. The total Bum of £301,050 was converted into inscribed stock with twenty years' currency and bearing interest at 45 per cent, free of income-tax. LOANS FALLING DUE. The loans falling due during the seven years ending with the year 1926 are as follow: — . 1920, £3,767,945. 1921, £10,105,457. 1922, £6,361,890. 1923, £8,838,556. 1924, £8,509,265. 1926, £1,131,492. 1926, £383,410. CUSTOMS DEPARTMENT. Before proceeding to estimate the revenue for 1919-20 it may be ns well to state the amount realized in 1918-19. This was estimated at £3,500,000, and the amount collected was £3,830,681, being well above the average revenue received during the past ten years. As si matter of fact it has only once been

HEALTH.

SUItrLUS AMOUNTS TO £3,678,773.

DEPARTMENT OF PUBLIC

exceeded —namely, in 1910-17, when £3,849,075 was 'collected,

The excise beer duty was £273,3-14, as against the estimate of £225,000. ihe number of gallons of beer brewed totalled .11,109,920. This gives an aye-

■ age duty per gallon of 5.875 d. The quantity brewed for the previous financial year totalled 11,039,053 gallons.

In estimating the revenue for the financial year 1919-20 the usual inquiries have been made from the principal commercial houses importing soft .-oods, hardware, drugs and chemicals, electrical goods, glass and chinaware, ..lues and spirits, tobacco, cigars, etc.,

i..d ilie general opinion expressed leads to the belief that we may look for quite as much revenue as in any previous year. The returns already to hand for April, May, and June, 1919, are considerably in excess of those for the corresponding months of 1918, the figures being—April, May. June, 191!>, £1,077,602, as against £860,907, for the same months ot IHIB. Shipping facili tie.s are bound to be better than during lite war period, uud should there- be no .serious industrial trouble, or interference with shipping, there appears to be no good reason why the revenue for the present financial year should not reach £4,400,000. \^

A hca\y increase in expenditure under the vote "Public Health, Hosnitala, and Charitable Aid" will be necessitated this year, the principal items of which are those?relating to the influen : za epidemic. It is anticipated that the total cost of the epidemic will be about £220,000, which should be reduced by recoveries from the sale of equipment find the use thereof at the Department's own institutions and quarantine stations, to a net expenditure, of £197,000.'

A sum of £00,000 will be required to meet the allowances to epidemic widows and widowers. The Government decided to cuthorize Hospital Boards to pay on its behalf to widows with children amounts not exceeding £1 Ca a week for the widow and 10s 6d a week for each child, and to widowers with children in poor circumstances a sum not exceeding £1 5s a week in order that they may engage a housekeeper to keep their homes together and look after the children. The annual cost of these allowances will be possibly about £90,000, of which £60,000 is required this year.

A further item in connection with the influenza epidemic is the cost of the/ Epidemic Commission, estimated to be £1,200.

In addition to theso increases in tho expenditure, there has been a general increase in the administrative expenditure of the Department; additional staff has been necessitated, and the splitting-up of the present largo health districts into smaller districts means the appointment of additional Health Officers and consequent office and administrative exp'ensos, including increased activities necessitated in the prevention of infectious diseases. There will also be considerable increase in quarantine expenses during tho year. Other items of increase are those under tho heading "Bacteriological Laboratory," and wages at the Department 'a institutions, which have increase ed in accordance with tho general increase in wages. POST AND TELEGRAPH DEPARTMENT. The amount of revenue on postal matter and telegrams collected by the Department during the year was £1,964,811. The Post Office Havings Bank business for the year was unusually large, the deposits totalling £18,101,105. Tho withdrawals totalled £14,938,842, leaving an excess of deposits over withdrawals for the year of £3,162,263. This is a half-million more than the excess of the previous year. The balance remaining at credit of depositors at the close of the year 1918 was £33,418, 125, as compared with £17,131,413 at the end of 1913. The interest credited to depositors for the year 1918 exceeded a million sterling.

Tho postal-note business for the year 1918-19 shows a slight decrease; but this is more than made up by increased money-order business. The aggregate of money-orders and postal notes issued was £4,372,826, and the amount paid out £3,987,143.

Nearly half of the Department's revenue is derived from postages, the noxt largest items being telegrams and telephone-exchange receipts.

The Department has provided the machinery for the collection of a largo portion of the money invested in the various war loans which have from time to time been placed upon the market. Tho sales of war loa-n certificates alone, which are handled exclusively by the Post Office, have reached the sum of £4,068,597.

The revenue collected by the Stamp Duties Department during the year 1918-19 amounted to £2,124,773, or £232,759 in excess of the collections for the previous financial year.