DEPARTMENTAL VOTES.

New Zealand Herald, Volume LXVII, Issue 20625, 25 July 1930, Page 13

DEPARTMENTAL VOTES.

FIXED ALLOCATIONS MADE.

DRAFT ON SPECIAL FUNDS.

THE SEARCH FOR ECONOMIES. [BY TELEGRAPH. —SPECIAL RETORTER. ] WELLINGTON. Thursday. The Prime Minister stated that this year a departure was made from the usual procedure in dealing with the estimates, and, after a careful examination of (lie various votes, only such amount, as was considered would bo just sufficient to enable them to carry out ttieir proper normal functions efficiently, while exercising continuous rigid economy in detail, was allocated to each department. The various adjustments and savings brought to tho aid of the Budget were summarised as follows : Charged to Highways FundSubsidies on local rate 3 .. . . £220.000 Interest on loaim 61,000 Reductions in subsidies— Superannuation funds . . . . 173.000 Hospitals 30,000 Voluntary donations .. .. 40,000 Railways 1 • ■ . . . • .. ISO.OOO Soldiers' loan sinking fund . . . 50,000 Annual votes reduced .. .. 388,000 Railway loss redtired .. .. 450,000 Land assurance fund . . .. 00,000 Reparations interest 30,000 Total £1,684,000 Reduction of Subsidies. Debt charges, pensions, highways moneys anil subsidies to local authorities account, for £15.176.000 of the £17,228,000 Of expenditure under tho permanent appropriations. Of the remaining £2,052,000, approximately £690,000 went in subsidies to hospital boards on rates, £600,000 being on account of maintenance and £90.000 on capital levies. So far as maintenance is concerned, curtailment of the subsidy, except in so far as it arises from the exercise of economy by tho boards, is not possible without upsetting tho whole basis of hospital financo and it is not proposed to do that. With capital expenditure, however, there is more elasticity and for this year capital expenditure by the boards will have to bo restricted to urgent essential works. In this way it is estimated that a reduction of £30,000 will result in the subsidies payable out of the Consolidated Fund.

Subsidies on voluntary contributions and bequests to hospitals and various educational institutions amounted last year to approximately £BO,OOO. Little hardship will bo entailed in restricting the payment of subsidy to cases where voluntary contributions and bequests arc applied to essential works. Subsidies on voluntary contributions for useful and necessary work in connection with the primary schools will be paid, but, in general, each request for a subsidy will have to be considered on the merits of the case. It is hoped in this way to save £40.000 this year without inflicting any groat hardship on anybody. Superannuation Funds.

Then there are the subsidies to State superannuation funds and the National Provident Fund, which last year amounted to £332.000, including £45,000 maternity allowances paid through the National Provident Fund and the friendly societies. The superannuation funds are in a very unsatisfactory financial state, hut, pending the report of the committee which is investigating the position, only the subsidies usually paid are being budgeted for at present. This means a saving of £175,000, though probably only a temporary one, in comparison with the expenditure) last year.

The Civil List and salaries and honoraria, mostly legislative and judicial, payable under statute, accounted for £138.000; while grants to university colleges, scholarships and other education purposes absorbed £101.000: compensa. tion for condemned stock, £30.000; Singapore Naval Base, £125.000; maintenance of war graves, £31,000; and exchanges and management charges of New Zealand stock in London, £72,000. Reductions cannot lie made in these items. However, the Singapore Naval Base will be a subject for discussion at the forthcoming Imperial Economic Conference. The remaining expenditure under permanent appropriations last year, amounting io £403.000. included £IBO,OOO on account of railway losses, which this year will be wholly reflected in decreased interest receipts. An amount of £50,000, transfer to Discharged Soldiers' Depreciation Fund, need riot bo repeated this year, although the amount of the fund is not yet large enough to offset the discharged-soldier-settlenient, losses written off against loan capital. The balance of the expenditure consists of payments under numerous Acts of Parliament. Suspension of Training. The expenditure under annual appropriations, which comprise the departmental costs, numerous small grants and subsidies, and various miscellaneous items, amounted last year to £7.973,000, nearly half the amount—or £3,219,000 being spent on education. In the case of defence, the amount allowed, £275,000, will mean a general suspension of the compulsory military training and some reduction in the staff personnel. The dispensing with the services of members of the staff is mufch regretted, especially in view of the unemployment difficulties, but if there is to be a suspension of operations the work will not, be there for them to do. The estimates under annual appropriations total £7,585.000, being a decrease of £388.000, as compared with last year's expenditure. In addition, a reduction in (lie railway estimates, aided by certain increases in revenue, will aid to the extent of £450.000. Aid From Special Funds. In addition to these savings in expenditure, it is proposed to augment the revenue to the extent of £90,000 by bringing in the following amounts:— (a) £60.000 from the Land Assurance Fund. This fund was established to meet possible claims for compensation arising out of the bringing of land titles under the Land Transfer Act, and out of the working of the A.'t generally. Claims for compensation have been very small, while experience has shown that !ho liabilitv on account of mortgagees' indem nity'is practically negligible. Under these circumstances it. is proposed to close the fund and transfer the £85,000 at present, standing to its credit to the Consolidated Fund. <>f tlic, amount £60,000 will go to revenue and the remaining C 25.000 will be held in suspense to meet any claims that may be made. The legislation neces.iary to carry out this proposal will transfer the liabilities of the fund to the Consolidated Fund, which has alwavs been liable to make good any deficiency in the Land Assurance Fund. (b) '£30,000 balance of interest on reparation moneys at present held in a special reserve by the public trustee. During the war the public trustee was entrusted with tho (Inly of liquidating exenemy property held in New Zealand, the, pioceeds from which, after the Treaty of Versailles, became reparation moneys. Interest to the. amount of £50.000 earned on such balances since the Tieaty has previously been Received, but owing to technical legal difficulties, legislation will be necessary before interest accruing prior to the Treaty can lie made available. All interest on er enemy moneys, however, should be applied in relief* of taxation, which is carrying the burden of the war pensions and war debt, etc. The capital moneys, with the exception of about £60.000 held by the public trustee against contingent liabilities, have already been applied in repayment of war debt.