FINANCIAL STATEMENT.

New Zealand Times, Volume LXXI, Issue 4130, 18 August 1900, Page 7

FINANCIAL STATEMENT.

REDUt.TION UF CUSTOMS DUTIES. ESTABLISHMENT OF A FENNY' POST. AMD/ ZF, ALAND LEA OS THE WAY'. VH.iO.UOUS RAILWAY" POLICY'.' A MILLION' TO HU BORROWED. REBATE OF I.UI.IWN TENANTS’.rents. TEACHERS’ SALAiMES TO liE, r INCREASED. 1 FRO VISION FOR TECHNICAL,; •EDUCATION. PREFER-ENTIAL DUTIES: KEOHTtOCITY ADVOCATED. ■ The Financial' Statement was, - read 1 1 y I he Colonial Treasurer ( Right Hon B. J. Sodden) in the House of Represeutiitiv.es lust night. ; The following arc the main features of the Statement ; - 1 it ia wita confidence and pardonable pride, said the Treasurer,that I submit uiy fifth Financial Statement. since, holding the position of Colonial Treasurer. and in it, as, in those preceding it, a very satis, factory condition, of aifairs is. demonstrated. The velsults of last year’s optimums show that the elasticity ot our finances was under-estimated', and the record surplus of .£605.1501 exceeded the expectations of the most optimistic ol our colonists, which (was .both to them and to n\e :v most agreeable surprise. The phenomenal returns from our railways and Customs clearly establish the increased spending power of the people, whilst, the increases (from land and incomes prove the increased value of veal estate. They also show that sa.laries have increased, and that those ■whose incomes arc- derived from trade, commerce and the professions ■ have prospered during- the year. " The savings through, the _ uiuTerexpenditare of moneys appropriated in tho various accounts go to prove there , has he on a. careful administrative supervision, ‘ and it is quito’ consistent' with good government that wherever, owing to altered conditions, expenditure of public mono vs from the Consolidated Fund can bo avoided without injury to tlie public service, a real and tangible saving is effected. . . 1 may as well state at this point that an (increased amount -will bo roUaired "from the Consolidated lend, ■which will perhaps strike members as being unusually largo, but this should not t a Ice | them by {surprise;. It must be remembered that increased and new charge?—suck as old age pensions, £200,000; payment of our contingents, harbour defences and defence forces, £258,000; contributions to Ottawa and India,.. £10.000; public health, £5000; , hinds and surveys, £l-10,000 —have to be. met; 'and .that such'‘.increased expenditure is desirable, and: in the best interests of ’ the colony/ For orphanages and inebriate homes I am also providing a new item of £15,000.,- The expenditure is necessary, and will provide for a long felt want. I am pleased to announce that, notwithstanding'the disturbed londiticins in China and tho war in Suuih Africa,v our revenues are more than eiiual to meet the strain of our increased expenditure, and' members will he glad to. hear (hat, after making duo provision for the increased charges I have •just enumerated. I see my way to fuM the pledge given that- there should be a reduction made by remission of Customs duties on the necessaries ot life. Details of the proposed reductions v'.ill be subsequently disclosed. lb has been (he practice ■ for some years past- to devote a very large portion of the surplus of the previous year in aid of the Public Works Fund. Tins will, after this year, have to he partially, if not wholly, abandoned, as it is, clear that, with’tho increased expenditure chargeable on tho Consolidated Fund, together with the reductions in the Customs duties and- other concessions, this assistance -cannot bo kept up. On the other hand, if we are to maintain a progressive policy, the amount to be raised in aid of the Public Works Fund will be greater.

and There. will )>£ & .corresponding increase of-tile- pj|},li,Wd, : .|.t. It, nuAsfc lie, however, admitted that Gie moneys I rtinsferred''ft’oin (he Consolidated F und liavo . been expended r.ix.li works wldeh are son ievibio for ad time. It is not unreasonable, therefore, to expect future generations, who wid reap the -henclit. of the iiuprov.ments and ejmvrnienees which have cost them nothing, to pay their share of the intoned: and "to hear a. responsibility as to the principal of 'further loan:; which may be' required- to complete tiio works inaugurated with surplus revenue. It, must he clearly understood iliat I do not. favour piling tip a huge public debt, and tut ting to'posterity to pay. Indiscriminate borrowing leads to squandering, and infiajhm and boomcaused by a large expenditure of public moneys end in disaster. The lessons taught in the past in this respect mint net pass unheeded. The necessity for more expedi'ion 1., prosecuting the ennstrnel ion of the North Island Alain Trunk and other main lines of railway, with the view of developing the tourist ti'nll'ie, promoting land settlement and industries. and connecting the large centres of population, is admitted, and demands onv immediate consideration. The completion' of our main ipatis, and the construction of roads in the hack blocks during the next summer, is an essential of paramount- importance in order to encourage tin; close settlement of our lands. Therefore, (ho % borrowing proposals herein submitted.' compared with those of previous years, are not unreasonable, ami, after careful consideration. are fenud to he absolutely necessary to meet urgent requirements. There will, be some disappointment that the amount proposed to lie borrowed is not larger, but wo must not overlook the condition ot the money market, and that .moneys could only he raised now at a considerable discount - in fact, it would be unwise la I place a largo loan on the. market | under tho existing conditions, I and prudence demands that we should only ask for sufficient authority to meet pressing demands. The fact of taking power this .session to borrow largely would have a depressing effect on our existing steaks, and would at tho same time prejudicially affect the. raising of the money absolutely required this year to give effect to what I have heroin foreshadowed, detailed particulars of which will he given hy my colleague. the Minister for Public Works when he brings clown the Public Works Statement.

I regret to have to mention tlial there - has been no favourable'opportunity lip to the present to flout the loan authorised last session. Temporary arrangements have been made under which moneys have been obtained with which to carry ini our public works, to meet the requirements of tho Advances to Settlers Office, and to complete the purchase of lands 'under the Land for Settlements Act. ..Tho anticipated speedy, termination of the war in South Africa brightened the outlook in the "money market, but the , unexpected trouble’ in China has given things n setback., and it seems impossible to gauge the time when wo can with advantage place our new limns with a reasonable prospect cl success. Under these ' circumstance",. 1 trust- members will concur with me in agreeing fllis year to the moderate proposals submitted. FINANCE OF .1890-11100,

As a- fitting close-to the finances of Idle nineteenth century, so far as they ’relate to this colony, I am, as previously 'stafed, able to congratulate tho country upon a record credit balance at the end 1 of our last financial year. This balance amounts to no., less than ~jl, and emphatically demonsi,rates the magnificent progress, this colony has made in .developing its internal resources. The revenue for the year amounted to -£5,589,380. to which £119,232 of other receipt;;,,writ;,added, making a total,on the revenue side of ; £5,699.618. The expenditure amounted- to £5,1-10,128. leaving a surplus on the year’s- transactions of £559,-190, to which add the balance brought, forward from .the. preceding year of. £45,861 ("£495,361, less £150,'00(1 transferred . to, .the Public Works Fluid), and wc arrive at the record balance of £605,351. ■" REVENUE.

lit framing last year’s estimates of revenue I most certainly had no idea that the colony’s resources would expand to- such a wonderful extent. The taxation ns imposed is clearly not- of an irksome or oppressive character, but as the amount received from indirecttaxation is large, it is clear that it will stand reduction and still leave a, strong finance. The revenue last year was estimated at £5,249,600, while the receipts amounted " to - £5,580,380, or £330,786 in excess of the estimate, and also- £393,957 in excess "of the preceding'year’s revenue. All the heads of revenue except the “Miscellaneous’’ exceeded the estimate: Customs by £127,500; Railways by £146,600; Stamps by £61,200; Territorial by £24,200; and,- others by .smaller amounts. ‘'Miscellaneous” would also, have shown an excess had tlie amount of £64332 been credited to this account upon recovery from the Land for Settlements Account, as 1 indicated in my last Budget would bo clone. The Audit Office, however, decided that tho recovery could not be - considered revenue," and therefore the amount had to bo dealt with as an outside receipt; hence “Miscellaneous” is shown, as £s2j'Boo less than the estimate. ■ -i EXPENDITURE.

The estimated expenditure upon all services for last year was set down as £s,2o3,7pi.whereas the-actual sums spent totalled £5.140,128, 'or £63,573 less than - the , amount, -estimated. The amounts which have exceeded the estimate arc few, and call for little comment, the principal item ■ being “Railways,” with £12,500; but as we have received from that source some £146.600 in- excess of the estimated .revaawe, wc cannot complain, if the- expenditure was exceeded by £12,500. Alnst of the departmental expenditure-has been kept within tho amounts voted. The dcpa.rtnie.nt under the control- of the 'Minister of Education shows hi saving of some £23,000. In explanation; of this; I am informed Ihaf the capitation war. not- so largely’ availed of as estimated, owing to' sparseness of / attendance caused chiefly by sickness amongst'the pupils of many of the larger schools. Some-of the larger' items provided" on the vote for “charitable’’ purposes were aho not, paid over during the year. THE PUBLIC WORKS FUND. • The year 1898-99 closed with" acredit balance of £70,856, . and- during the financial year 1899-1900 the fund was augmented by receipts consisting of £310,000 . of old. loan .moneys, -and £300,000 of advances made against the million loan authorised last session; £450.000 was also transferred front the Consolidated Fund, and some. miscellaneous receipts, amounting - in all to £2116, were added.-making a. iota) of 1,062.116 'by whioa ilie -moneys in the fund were supplemented. The' expenditure during the year amounted to £993,223, and the balance of cash and

advances at tho close of last vear was L'10)1,7 1)1. LAND FOP SF.TTLL.MKNTS AC FOUNT. Large areas of land were acquired last year for settlement purposes, and the outlay, including expenses, totalled f.;:171.1h5. Besides this, the account was charged w.ili i;.'7.,182 for intcie-c paid hv the Consolidated Fund upon debenture > issued to provide fund.-- for the. pureh.-pe of estates To meet the whole of tiiis expenditure debentures' amounting to 1:1-18.00!) were created and sold, and with CltJ.ooo derived trom rents. £228 Irom small recoveries; and (23.1'1l of balance brought over from the preceding ye% the receipts amounted to 2j22.i 19. and. tins ex penditiue as above living £-109.3”'). there remained an available balance of t 00,380 to begin the current .V ear with. TOWS TO LOCAL BODIES ACCOUNT. The i.alauec in hand to credit of (hi-; account at the emu men cement oi last year was £lßoo. Return Is ot unspent balances of loans were received amounting to .£37(5. and one hundred amt ki'een thou-and live hundred pounds’ worth of debent urea was created and issued .Inline the year. These sums. 1 amounting to a total of £120.728. have enabled payments on account ot loans to he made 'lining the yea''—to hierd bodies £08,770. and towards opening uiT blocks of land for 'settlement C->] 303. leaving- at the end o! amt vear a balance of .£20,5!)3 to the credit of the account. I shall submit proposals giving greater facilities for adjustment, and anticipate that* a larger number will take advantage during, the current year oi tho concessions granted.

land tax and income tax. 11l inv last Budget I anticipated find, from causes which I specified, I would lose land tax to the amount of £SbU() a veer. This loss was,. however, in part made w> ‘by- enhanced- .valuations. ..in certain ‘districts, and adjusted assessments consequent thereon, the receipts being £29.1.209 and the estimate £290.000. When the extended authority for which I mean to- ash this session in an amended Valuation Bill in"granted by Parliament, under which auv valuations which are ton low ean be raised. I do not anticipate any further decrease in the proceeds of 'the. land tax. - ■ ■ • • ■ Tlie • continued increase 'in The-■■'in-come tax is satisfactory; and is a 'further) indisputable' proof that tho country is doing sound business, and that its merchants as iveli as . its farmers are in a prosperous condition. , THE PUBLIC DEBT. . The gross public"-debt on -the 31/;' March. 1899,' wa5'£46,938,006 : on tho 31st- .March, 1900,. it was '£47:874,452; or an increase of,-, £936,-1-16 for-, the, year. .■ - ■ The net pu-blie debt- on -the.. List Alaich last- was £16,930,076. or £B49,Aid in excess of the net debt of the preceding year. The increase . during .the year , of .thegross debt, was caused by tlie. issue of intciest-cai'Jiii'.g debentures to the amount of £019.002; •by the issue c-f debentures for £300,000 ill anticipation of the million loan authorised by the. .Act of last session, loss £85.000 repaid on account of tin; loans of 1896-98; , by ’ £50,100 of debentures for sinking funds,. accretions, and ,£51,98-1 additional -3 per cent, inscribed stock in consequence of various conversion operations :. these items make up the increase of £036,446 already mentioned'. In connection with this increase of debt it is right to mention that- no less than £448,000 was caused by the issue of debentures for the purchase of lands for close settlement, and the interest payable upon the loan will bo more than recouped to the Treasury; £115,500 was raised and paid over to local, authorities, or paid away in the direct- formation of roads to open up lands for sale: these moneys are also of an interest-earning.character,.as also. £55,562 inscribed as New Zealand Consols.

Thus, of the increased 'indebtedness, about. 75 per coni, has been incurred for purposes under •-which the interestwas repayable hy those reaping the advantage of the borrowing, and ihore has been no increased burden placed noon the general taxpayer. A large parcel of debentures, amounting to-over half a million, issued under tho Government Loans to Local Bodies Act, 1886, falls due on tho 31st December next. 'I do not propose on this' occasion to convert those debentures into inscribed stock, hut I .shall content myself for the present with the provisions of the' New Zealand Consolidated Stock Act of 1884. which enables mo to renew them for a further to nil of years, and during their new currency the money’ -market will probably bo in a more favourable condition for a conversion operation. These are the only debentures belonging to the permanent' debt which fall duo during 1900-1. . .. i. iSS lON OF-CUSTOMS; DUTIES. The oft-repeated demand for "a reduction iu indirect taxation cannot longer pass unheeded, and it (will be useful to ciunpare the results of the two systems of .indirect-' and direct taxation. Last year the- contributions from the two principal sources wore—From Customs (indirect), £2,107,567; while the land and income tax. (direct) produced £422,456. There can" be no doubt, .therefore, that there is considerable weight iu the argument that the -wageearning classes arc, entitled to relief by way of reduction on the necessaries of life'. a ml. such., other, commodities .as are essential to their daily wants and requirements. . . Tlie Government has now determined to make some considerable reductions in our Customs duties, but there has been some difficulty in selecting tho articles upon which the remission should lie made and on this question there are 'wide differences of opinion, and some of these are irreconcilable. Reductions, made in the prices of articles cf daily consumption-by a work ing man and his family mean a saving in' 'the weekly expenditure, and result practically in an increase of wages.' or, more correctly, in an increase of the purchasing power of money. I therefore propose, and that with pleasure, to take off the whole of tho duties Oil*"”

Kerosene, rice, salt, coffee ancl cocoa, mining machinery.'’ agricultural' machinery, dairy machinery, dredging machinery, engines and boilers for mining and dairying, and portable and traction engines. Further. I propose to remit half the duty on — Tea (other than that in small package"), luilf the duly on currants and raisins, half tho.duty on caudles, half tho duty on wax matches, leaving the duty thereafter equivalent to ,an average of, say, SO per cent, cu " the value, 1 and that tiie present duty on patent medicines of 40 per cent, shall bo reduced to 15 per cent. ‘ That the present duty on drugs and druggists’ sundries and chemicals shall be reduced from 20 per cent, to 15 per cent.

I Tlii* remissions on’ these’ heads auloOiil to- about .£l-3.7,000. Them i:i-iv. in gi’iug effect to these proposals. he -a .slight disturbance in one or two of-our industries'. and those interested may complain Imt tacir investments are prejudiced, but this cannot bo allowed to weigh against what is for the public good, and the continuance of ion v, hi oil in some quarters, it is alleged, presses unduly lon tile masses, Hie roniis.si'.uis on Cus tarns duties, as stated previously, together with concessions on railways and penny postage, are estimated to reach over £1500,01)0 per annum. To this, after the 31st March next, must ho added the reduction in the mortgage tax. which will amount to over £2,3.000 per annum. REDUCTION OP .MORTGAGE. TAX: .For e considerable tune interest on mortgages has steadily decreased. During the past ton years interest on mortgages has fallen about one-fourth : this makes the 1.1 in on the capital value a very hea-.’V eluirge. 1 intend ,to submit proposals later on in the session that Irorn and -iftei the 31st March next the mortgage tax should he reduced by .',d m the £. - • PENNY POSTAGE. Pr.iliament, during the session o! 1801. passed an Act under which a penny "postage within the colony could be established. From that time until the present, owing to the demand upon our fluids, wc have not.' been able to give to the public the boon such a cheap rate of postage wotdd confer. It is pleasing to bo able to announce that, .on and , after the Ist day of January, 1001, a penny postage ' system, will be- ■ established •within and witljout'Thc -colon .V: Tilts colony will therefore ,bo the first hi 'AustViifeia to ‘have a universal penny postage. 11. estimate that the loss of revenue by Ho .doing iyill- he. about £80.1)00 per annum; but this will only be of,.a temporary nature, for ■there will be an increase"in the correspondence which will-in time .bring 'tip the revenue to the 1 original’ level. . The loss.to the revenue during the .imcxpirod portion of .the present financial year will bo about'£2o,ooo. FINANCIAL YEAR 1900-1901. . The total estimated expenditure out of the Consolidated: Fund amounts to £5.411,520, as against the actual cost of last year, which reached £5,140.128. Last year 1 the appropriations, including the amounts'voted in tire supplemen-, tary estimates, totalled "to £5,203,701. Our figures for this year arc, therefore £301,395 in excess of the actual expenditure. ..and £237.822 in excess of the estimates of last your.- ■ Turning to the revenue side, we can, look forward to a total-revenue for the year of .£5.163,000. including • the receipts from' tiic sale ot debentures; fp,r. sinking.lund increases. .This revenue Ist £107,78!) less than’ was received last; year, i but! As; £103.000 more .than was! estimated for that year..

: The oft-repeated fallacy- that by un-der-estimating -receipts and over-nst’ma-ting! expenditure the. Colonial: .Treasurer creatos » surplus is, ,of course, • .'pure, uou.lensf’., for, the. surplus is simply the difference between the actual .receipts and; tile actual expenditure;; added- lb any! credit ’ balance 'brought forward:■ and at : the close of this- year,- • as 'trC every .year since the present ,Govern-., input- took' office, ‘I expect ',a -surpiu?;,. but, SPafarpas Lean forecast,’ it will lie’ the smallest.wo have over had. i;.-. i jihvTui) ke.su ! : i'y at vhe CJ--JSK OK THIS'' CURRENT YEAR.

The ,' .estimated expenditure, being. £5, ‘141,523, and. .the revenue-£s,-163,000, we have, an excess- of revenue over expenditure of £‘21,477. We 'commenced’ the year with a balance of £605,351, of which, amount ,wq propose to transfer £500,000 to the-Public Works Fund, leaving £105,351 available in. the Consolidated Fund. This amount, added to the surplus of -£21,477. -will provide £126,828 for supplementary es- , timales and unforeseen contingencies. ADDITIONAL. FUNDS. For the more vigorous prosecution of onr public works a larger expenditure will this year be required out , of our Public Works Fund. T am of opinion that it will . Ini no«vs«n'Y O’ rsk for authority, .to ,-raise..a, loan..pf due -mil-, lion so as to carry on our; public works policy successfully. . - TEACHERS’ .SALARIES. The total annual giant for teachers’ salaries is* to 'increased .by, about £98,000,' which is ‘ equivalent.' to’sp per head for the number in average attendance in. all. the schools, of the colony. . TECHNICAL EDUCATION. ‘ So lunch has been spoken and, writton in favour of manual instruction and of technical education'for the youth of -the colony that” it . docs '. not require more than 'for nic to say that, sub.‘-;tail-tial 1 hnancial assistance will be given’ . to tho. existing technical 'schools. The Bill ,how in course of . preparation by the Minister of' JSducation will; I -’ -trust', prove' satisfactory,; and find its' way Into the >*tatuto hook., . The necessary expenditure will be amply provided for .in the ; Supplementary -Estimates. NEW MARKETS IN SOFT! I AFRIC A AND, ELSEWHERE. I.idosiro to'- draw, especial attention to the vast possibilities--that, present themselves for opening up a "fresh and, large market for the natural products of this ' country in both. South Africa and China. I sincerely hope that the enterprising- steamship-owners may see their way to give a, regular service, so as to admit' of' a steady outpour of otor products to these countries. . , HARBOUR DEFENCES, DEFENCE-’. FORCES, : ANT? VOLUNTEERS. The defence expenditure this year amounts to £258,111. This- is a large, fcnni," in proportion to our population of 800.600. It',must, however, ': ,be borne in'mind that, a groat portion-of the j proposed, expenditure ,-is .non-recuiv rent. We have now a scheme .'approved ; by the Imperial Defence- Committee, 1 and it is our duty, compatible with the l funds available, to .give- effect to the .recommondaticns embodied in t he committee’s report. Last year cur appropriations were for the -capitation and equipment of 8060 volunteers; since then 3000 have been enrolled, and applications are now in for ninety additional corps. . A large number will not, be able to earn capitation money this year, so the amount asked, will he sufficient to meet requirements. Appropriations are also rendered necessary in connection with the formation of rifle clubs and cadet corps. • - 1 PREFERENTIAL i DUTIES. The Colonial Treasurer referred <o 'the • question of reciprocity : with tho Mother Country, Canada- and Australia, and said it would bo to.the advantage of; the colony, and of the Islands if power were taken to reciprocate with Fiyi- ■’ ! ‘ ' 11 " V 1 This last -matter;' 'he said, is worthy cf your serious consideration, and it is the intention.of thetGovernment to ask for an appropriation ' (o defray the extra cost- that, would be entailed in subsidising a mail steamer to insure

regularity'and low fffffgltisi No r.britmit m enWHeyo nd, exist ing. -arrangements will be entered into prior to the Hon-..• having luithpris.ed .life jlccesjniTy expenditure. TRADE WITH THE- -ISLANDS-. - It is well known that the" residents, of the Fiji Islands are- na longer content to remain a. Crown colony. They are favourable to and have moved m the direction of annexation to New Zealand. ■ At the beginning of -this- year the Cook Islands Government and' Arikis requested annexation to Great Britain. On my visit, the majority of the European inhabitants presented,.,a .petition, to me asking for annexation to this colony. This in due course was forwarded to his Excellency' the Governor. and there the matter at present rests. ' '''''■ V " ' ” .

Members,, will notice ail item..on. ltd Estimates of. £SOOO, advance to .the Cook Islands Government- for. the pur ■ clause of an auxiliary oil-engine schooner. In submitting this proposal I desire to point; out that - this' colony, whilst assisting, tjie . Cooklsland Government. and Island .residents, will reapa collateralyadvantage.. and .the . advance will be at the same - time - well .secured. - ■ ■ - >■ I am -of • opinion ‘-that - our trade with' the Islands, with very little effort,' can be considerably increased'', by tills reduction of freights,. and, .that from the. Islands i. can also ..be materially..; aug,-. monied * • - SAN FRANCISCO” MAIL ’ .SERVICE. The position, at-present- is that'-- the contract for the renewal of : the San Francisco • service, 'which was critorcd into in 1898 arid expired on tho 31st Alarcli of tins year, ha's ‘been .renewed with the Union .Steamship .Company yl New Zealand until, the - 31st . March,1001. •' ■■ £ : •' The Oceanic' Steamship Company, better known as Ji D’. ' Spreckels Company, lir,s been associated withthe. Onion Steam Ship : Company; in .carrying out the contract. ■ The- Oceanic Steam Ship • Company has now secured 1 from the United States Government a ten years’ contract for a service be-’ tween San Francisco and Australia.. It is stated, .though not officially, that the subsidy to be paid is £50,000 a. year. Messrs' Spreckols. and Co. have 1 offered to perform a seventeen ■ days’ sorvico .between Auckland' and San Francisco, and a twenty days’ service between Sydney and San Francisco, every three weeks each Way, for the payment of £30,000 per annum from Australia, and , New Zealand, an essential condition being that the serviceshould bo performed exclusively by vessels registered ’in the United States. 'Mis being the case, the offer could not bo dealt with, seeing that it conflicts with the resolution, passed by tho House, which provided that at least one British-owned steamer should be- employed in tho service. Later on proposals will be submitted 1 by my colleague, the. Postmaster-General, to meet such 1 circumstances as may arise., PACIFIC CABLE. From what-1-can gather, tenders will soon be called, for by the board appointedby-.: the; Committee 1 " for”’, rite manufacture and laying of .the. Cable', Owing to the increased cost of copper, guttapercha, etc., it. -is estimated (hat tho expensewill exceed tho amount calculated upon when! this Parliament' passed the Pacific 1 Cable! Act hast year; An amending 'Act’ to meet; the altered conditions .will bo necessary. PUBLIC HEALTH. 1 : ... Tt-Ts-a matter-for-,-sincere congratulation That ‘ this ■ colony- -so tar lias virtually escaped a visit from—that; dreadful scoprgo ; the’ 1 bubonic 1 plague.’ 1 ' .- It, is-’ proposed ■to bring into existence, a Health; ''Department... with full powers an.d responsibilities, and it will follow; in natural sequence-that a slight increased charge must fail upon- the taxpayers; but it is better to bear With .this than to. have plague, diseases;, death and sorrow. —' . ' ' ' ,l : MIDLAND RAILWAY.’ ,

This . long-pending, dispute has, so far' as the - Jaw respecting the same' is concerned, been finally settled, the Judicial Committee, of the Privy Council having decided in favour of the colony. . . “

The litigation has been tedious and costly, but -that is compensated for in the full vindication of the honour of the colony. Leaving tho Minister for 'Public Works and’ myself out of the question, I take this opportunity of stating that tho colony is greatly indebted to the Crown Solicitors, a-nd Mr H. D. Bell, also to tho Under-Secre-tary of the Public Works Department, Mr Blow, for the very able manner in which the proceedings on behalf of tho colony have been conducted. ’ A Bill will be- submitted for the purpose of doing justice ,to occupiers who have ‘made improvements on the land within' the Midland railway area. OLD AGE PENSIONS.

Tlic amount asked for old ago-pen-sions, namely, £200,000, may appear large, aiid .more .than was, anticipated by some, The number., oT'pen.sionon; cf tho Maori race is a factor not contemplated; and was not;ascertainable at the time-the Act was passed. • On tho whole, the 'Act has worked satisfactorily, and' has proved a great boon to thousands of bur pioneer settlors. The funds at our disposal have hooii sufficient to prevent the. payments of those pensions being , felt by the .taxpayers of the colony. „ * 'MAIN TRUNK LINES OF RAIL- ‘ i WAYS. Tlie North Island. Main Trunk line of railway takes the pride hf place, so far as public attention is concerned. Deputations have waited upon Ministers, meetings have been held, and petitions received. Jo this I take no objection-, but’when all sorts of .threats are held l out unless.the Government pledges itself to perform the impossible, then I draw the [line, preferring to do what is just to all parts of the colony, and not to rush into reckless and lavish expenditure). ' ' " - ' ■' 'V •

There are two points, of interest, tin; one,being the speedy completion of the "' or f' end the other the route. , The Governiheilt' Have come to the conclusion; that _ route for. the most expeditious .coustmctioA' of the railway is the central one. , -Parliament has .-au*thoriscd this, and the surveys of- it al’fe * the most advanced. It .is the shortest, and presents the fewest difficulties in the way of speedy construction. After! thi[ inquiry, the Government see no’ reason, for differing from the decision previously arrived at. ■ , ; : Irrespective of other maih trunk lines, the 1 Government have' been v asked .' to pledge the colony to complete this! line within throe years. - To do so, unless at enormously increased cost, 1 - would/ owing to the character of the country, that it. has to - >pass through, be - w physical’impossibility. The laying of the permanent, way - will ..ho. completed when. the. Makohine viaduct is finished. , Last - year for railways' £300,000 was allocated out of thp-mlllioii loan. Tins year we propose /to, allocate £500,000 ; and, taking into' consideration the expenditure up to the 3ist. March last, this . allocation, practically means more than doubling the • expenditure- for the current year.

LAND FOR SETTLEMENTS. The'sum expended m the purchase-in private lands last, year (including expenses) was“' _ £’37’4,r4'8,' a' sTira ’ far'—tefc small as compared withI—the 1 —the demand there; is if,or land "for tclose settlement^ The. Tire idistricts -in which land : is most, required-for close settlement art; Hawke's. Bay,.AVairarapa, MarlborougUNorth Canterbury and North Otago ;j and, : given: the . necessary means, our intention Ibis year is, if possible, ..to double the purchases, of the preceding ■yoaij. | REBATE RENTS. CROWN ... .! ' TENANTS. It( is necessary that tenants should •be punctual in’the payment of their rents;’ ciid’T desire' to say that, con’sidering' that 1 on ..the 31st March. 1890, put jof, H1,{58-1: Crown tenants, no - loss . tliaii 3785 - were in arroar with their . rents. 1 to •T-be ■ -amount of £52,891. and ’tliaii such arrears had been reduced cn •the )31st March' last' to £IO,OOO. owing by 1709’,tenants,’ whilst the total nuiiL her’jhatl 1 increased to 16.406. the colony has -every .'reason, to congratulate itself .on .tlfe/;iinpi;p‘vcd' position. To.promote, fhq punctual payment "of interest-,.,du0 . under ;tho -Advances t q .SettlersJ-Act, a.T-cbate .is given of 1 per cent.' Reductions lyerc made of V. per 'i'eni: to The-'local bodies under 1 the Loans to ILoc-al Bodies' ''Act. Provisions have, also'been made- in order to .cncoufaSje TKe'punctual payment of rent under the Land for Settlements Act. • : - A £ GENERAL.

‘"After . referring, to "our boys at Mho front;” min lug debris; and industries and labour; the' Colonial Treasurer went; on' to state, ’ that it was proposed to ail; for-authority to ispeud £500,000 ; per annum, during the next live years on railway improvements and additions. The total ■reductions in railway rates since the / Government assumed control liad amounted .to £369,439. 1 . Resolutions carrying, out the tariff changes specified’ in the Statement .wore agreed to and reported. . i ■ ■ The Colonial Treasurer, in moving the adjournment oi the House, said : tho present Financial Statement was the niost important one which it had been his lot to deliver. - Captain j&ussell asked what course it was proposed to take in regard to the introduction of i a Bill to* give effect to the tariff changes, and also when it was proposed to bring on tho discussion of the’ Statement. The Colonial Treasurer. said the first thing to do would be to discuss the Financial Statement. Ho would ho ready for the discussion that night week. After the debate on tho Statement was finished - he would take an opportunity of bringing down the Bill to make the tariff changes. In the meantime, of course, as.in all such cases the resolutions come to in committee would stand good. The House adjourned at 0.50 p.m.