THE PREMIER AND THE COLONY'S FINANCES

New Zealand Mail, Issue 1679, 4 May 1904, Page 60

THE PREMIER AND THE COLONY'S FINANCES

AN INTERESTING STATEMENT. Seen before 'bis departure for. tlia Marlborough Sounds laps'd Friday, the Premier was looking considerably better than lie seemed last week. Ho was quite ready to talk about the finances, and as lie talked it became evident that the surplus has been a good tonic to him, and the state of the Public Works Fluid a source *of pleasure. The surplus, in bis opinion, proved the sol. id prosperity of the country, a prosperity which has been growing for a long series of years. Asked about the prophets of evil who predicted a slump, and about the pessimism of Mr Austen Ghamberiain’s Budget speech, lie smiled, declined to go into any prophecies on liis side, confessed the utmost belief in the colony’s resources, and at the same time pointed out the need of keeping a /‘strong finance.” The phrase was reminiscent of Mr Ball an ce, with whom it was » favourite, and of course meant more than a phrase. “These figures for 1903-4 prove that our finance is strong sti 1/1,” Mr Seddon said, and he added that it must be “kept strong.” It is on the whole fair to conclude from this remark that there will be no proposals in the next Budget for reduction of taxation. Asked as to the Public Works Fund, Mr Seddon referred with much satisfaction to the payment during last year from revenue of £350,000. He expressed pleasure at the aggregate of £309,000, a, six months’ supply at last year’s rate of expenditure; and agreed that if the cash surplus of the Consolidated Fund were voted by the House for public works, the current year would do very well with the £649,000. He thought it would be easy to get through the year with the £1,460,000 thus put together for public works. He went further, and said that the time may not, in his' opinion, be far off. things ‘going as well as they are now, when, with a public works expenditure cut down resolutely to a million or a million and a quarter per annum, the Colony could do without the money-lender altogether. It must be borne in mind at the same time that if the surplus were to he all handed to the Public Works Fund, and the expenditure were to be kept at nearly last year’s level, the money wouicl be expended by March 31st. and Parliament would not meet for three months later. This was a hint that the time has come for “tapering off,” as the saying ran some years ago. It may he understood from what fell from the Premier that the rate of public works expenditure may he lessened .presently, and that if authority for a loan is asked for it will ho a small one. On the increased expenditure being referred to; Mr Seddon at once went into the figures, showing how closely he lias been studying them of late. Ho took tho increases almost at hazard. . £ Permanent Appropriations ... 56,984 Tourists, Industries and Commerce ... ... 38.936 Postmaster-General ... ... 38,640 Education ••• , ••• ••• 20,143 Agricultural Department ... 12,993 Railways ... ••• ••• 97,803 Lands and Survey 31,361 Total £296,860 Then ho went to the other side, shewing the retrenchments — £ Under special Act® ••• ••* 20,381 Old Age Pensions ... ... 8 312 Defence -• *6,779 Total ' £75,472 These reduce the increase to* a net £221 388. Analysis, the Premier continued, would show that of the every item reflected the progress of the country, and that .every penny of tho expenditure is highly reproductive. For instance, the Railways and- the Post Office earned an increase of revenue far larger than the increased expenditure, the’increased expenditure on the Lands and Survey put more people ;on the land the increase of the Education vote satisfied a legitimate aspiratiou auct was directly beneficial. On the other side, the decrease in the Old Age Pensions justified Mr Seddon’s predictions to this effect made at the tune the measure was before tho House _ and was the object of hostility to critic®, who declared it must end in the wildest and most, uncontrollable expenditure. As for the reduction in the Defence expendilute, that was a- substantial obedioiico bo tho mandate of the House, and a sufficient reply to the many denunciations levelled at the conduct of the department*.