Untitled

New Zealand Times, Volume LII, Issue 12199, 25 July 1925, Page 5

The balance was held as follows: Cash, - £1,113,219; imprests outstanding, £304,651; investments, £2,732,936; total, £4,150,806. BANK OF NEW ZEALAND In terms of section 12 of' the Bank of New Zealand Act 1920, the Government exercised its option to take up on April Ist last a further 375,000 £1 preference B shares, which wjll go to' augment these investments. It is estimated that these accumulated revenue surpluses, as at March" 31st, 1925, are worth .£1,175,000 per annum to the Consolidated Fund, made up as follows:—lnterest on investments, £780,000; saving on using money for capital purposes, -public works, loans redemption, sto., £395,000; total, £1,175,000. TREASURY BILLS Treasury bills in anticipation of revenue amounting to £600,000 were sold in London at 3f per cent, discount at the end of April, 1924. Further Treasury bills, amounting to £500,000, issued in anticipation of of revenue, were sold as follows: £250,000 in Now Zealand, October, 1924, at 5J per cent., and £250,000 in London, January, 1926, at 33 per cent, discount. The whole of these £l,lOO- - revenue hills, however, were redeemed with cash, there being no bills* of this description outstanding at the close of the year. The £500,000 bills issued during 1923-24 in anticipation of loan, and referred io ;n the last Budget, were paid off on June 80th upop receipt of ths loan-moneys. ; Redemption 'bills amounting to £2,300,000 were outstanding as at the 31st March last, for which a corresponding .amount of debt was redeemed on the issue of the. bills. PUBLIC WORKS FUND The expenditure on public works showed a considerable increase over that for the year 1923-24: and amounted to £4,357,440 net, including £2267)00 transferred to Main Highways Account, Construction Fund. The principal headings of expenditure were railway construction, telegraph extension, additi jn to open lines, and roads, eto., in that order. My colleague the Hon. the Minister for Public Works will at a later date submit his proposals for tho continued progress .of developmental operations, and you will bo asked to authorise the raising of the necessary funds for this purpose. AID TO THE PUBLIC WORKS FUND In qjcih of the last two years £1,000,000 has been provided out of surplus revenue for transfer to the Public Works Fund, the effect being an annual saving of approximately £98,000 in; debt chargee that would ’ otherwise halve had to he provided by taxation. As I have. pointed out, there now remains a diininshed surplus revenue available for capital purposes, but I propose to ask for authority to transfer up to £1,000,000 this year; the actual amount to be determined as requirements demand and conditions permit. ELECTRIC SUPPLY ACCOUNT Expenditure in connection with development of hydro-electric schemes totalled £847,478, or an inorease of £34,503 on the expenditure of the previous year, which amounted to £812,975. Full particulars with regard to works which are already rev-enue-producing and those under construction will be submitted later by my colleague, the Hon. the Minister for Public Works. Development works were continued

in connection with the Mangahao scheme and the extensions at Horahora and Lake Coleridge, and these schemes are now supplying large areas with power for various purposes. A commencement has also been made witji the harnessing of power at Arapum, on the Waikato river, a contract having been entered into with Messrs Armstrong, Whitworth, and Co., for the necessary works at that {dace. The first transmission-line to Auckland is approaching completion, with the object of supplying power from Horahora pending the completion of the Arapuni development, estimated to be finished' in about three years. Current from Mangahao was made available to the Horowhenua Power Bdard on November 3rd, 1924, and to the Manawatn-Oroua and Hntt Valley districts before March 31st last. MAIN HIGHWAYS ACCOUNT REVENUE FUND. The balance in the account on April Ist, 1924, amonnted to £249,681. During the year" additional sums were provided as follow:—Credits in reduction of- expenditure incurred, £3507; "interest on investments, £lO,840; transfer from, consolidated fond, (under special Acts), £35,000; customs duty on tyres, £102,303*; annual license fees in connection with motor-, vehicles, £257,500; £459,150. Total, £708,831. •Includes £32,500 paid from consolidated fund. The expenditure . was:—Maintenance of main highways, £119,958; charges in connection with the registration of motor-vehicles and collection of annual lioense fees, £7,500; balance at credit of the account as at March 31st, 1925, £581,373. Total, £708,831. CONSTRUCTION FUND The net expenditure out of the construction fund amounted to £225,464, the whole of which was provided by the Government in terms of section (5 (2) of the Finanoe Act, 1923. CUSTOMS AND EXCISE Including the tyre-tax credited dir* cct to main highways acooont, the total customs revenue for the past financial year (£7,689,192) showed the substantial surplus of £827,409 over the collections for the previous year. The following table sets out the principal sources of revenue: —Spirit®, increase, £69,928; tobacco, cigars, cigarettes, £65,047; apparel and textiles, *£131,117; motor-vehicles,.tyres, and parts, £142,435; other goods, £149,640; primage, £34,476; total, £327,409. * Decrease. These results are due to the general buoyancy of trado in the Dominion and to the satisfactory average prices our products have realised. The following table shows tho values of imports and exports for eich of tfje past six financial years:—l9l9-20, excess of exports, £18,614,621; 1920-21, £19,243,597*; 1921-22. £7,808,823; 1922-23, £8.435,921; 1923-24. £7,250,850; 1924-26, £4,950,063. 'Excess imports. The principal items of export in 1924-25 were:—Dairy produce (buttery £12,063,255, cheese £6.161,680), £lB,224,845: wool. £17.379.249; meat, £9,585.315: skins and hides, £3,347,491. The excess of exports over imports is less than for anv of the three preceding years, and this movement may be followed in some degree by a relative falling off of imports. The Budget for last year forecasted changes in the conditions which entitle goods to preference under the Oistoms tariff. Negotiations ere still proceeding, and it ie expected that

our future policy will be announced at an early date. The-following figures show the values of imports from Empire and foreign Sources: — £ 1 United Kingdom, 1924 28,208,530 Other British countries ... 12,622,379 Total, British Empire 35,830,909 Foreign countries 12,696,694 Total for all countries 48,527,603. Beer duty collected during the past financial year, which was estimated at £630.000. amounted to £650,384, an increase of £18,290 over the preceding ydar. LAND AND INCOME TAX The net reoeipts for the past year amounted to £4.721,303^-land tax, £l,. 335,251:' incpme tax, £3,386,052 —and compared with the collection for the previous year showed a decrease of £486.691. Land Tax.—The land tax receipts compared with those of 1923-24 *how a 1 decrease of £91.211. The comparison is as follows:—l923-24. £1,426,462: 192425. £1,335,251. Decrease, £91,211. This decrease represents portion of the reduced revenue * anticipated as a result of the reduction ~of 5 per cent, provided for by the Land and Income Tax (annual) Act, 1924, and the increased mortgage exemption allowed by the Land and Income Tax Amendment Act. 1924. The balance of the remission waa, however, offset by. the increased value of land in districts revised under the provisions of the Valuation of Land Act and the collection of a considerable amount of arrears of tax. Income Tax. —The income tax receipts compared with those of 192334, show a decrease of £395,480. The comparison is as follows: —l923-24, £3,781,538: 1924-25, £3,386,052. Del crease, £395,480. The decrease in the income tax is due. to the increase in the percentage reduction from ,20 per cent, to 33 1-3 per cent, provided by the Land and Income Tax (annual) Act. 1924, a compensating influence being an increase in the income of taxpayers generally. STAMP AND DEATH DUTIES The net revenue collected under the Stamp Duties, Death Duties, and Amusements Tax Acts was £3,240,332. The following shows the increases' (decreases being shown, within, parentheses): —Adhesive stamps,' . £1949 ; duty on instruments. £4539; death, estate, and succession duty (£8508); gift duty, £11,942; impressed stamps and duty on cheques (£55,212); company lioenses,-£4272 • banknote dnty (£165); duties payable by racing clubs (£28,040); amusements tax (£36,162); rates, fines, and miscellaneous, £1936. Totals, £24,638 (£128,087); total decrease £103.449. . The decrease in revenue derived from impressed stamps and dnty on cheques is explained by the fact that the banks, at the coming into operation of the provision of. the Stamp Duties Act enabling them to supply their customers with unstamped and to pay duty thereon, held large stocks of stomped cheques. The hanks now. render quarterly payments in respect' of duly payable cm cheques supplied by t hem. The decrease in amusement tax revenue is due to the raising of the limit of exempted admissions from Is to 2s. This amendment of the law was ift operation during the last six months of the -year. The apparent falling off in duties derived fron race meetings is accounted for_ by the fact that the period during . ’fhich stakes dnty was payable at the rate of 10 per cent, expired on March 31st, 1924. _Tlie rate - which -waa -in operation during the past year is the now current "rate, of 5 per cent. In order to encourage thrift and provision for dependants it is proposed to ' exempt, fram 'death duties the moneys ■payable under life insurance policies up to £IOOO. RAILWAYS The grass receipts from the working railways amounted to £7,112,523, an ..increase of £128,313 on the previous year s figures. The working expenses amounted to £6,545,418. The net . Ir^ c ? , P ta E ere therefore £1,567,108, l, al uount represents a return of P 61 * cent, on the capital cost. 1 -these are departmental figures prepared on a commercial basis, and while .they do not agree with the cash figures Shown in the Consolidated Fund Ordinary Revenue Account they can be •reconciled with them. - -- conditions early in the year were fjrerae to good results, and receipts J .T® cted , Ut « r » the year'by 5P® infantile paralysis epidemic. The Departments revenue has also been *®?hted to some extent by motor dominauguration of a com-' iperciai brand}, and the appointment <rf business agents under the direction W a commerraal manager, has had tW effeot of meeting this competition to 9 great extent. , y : * v,Externum floods and slips during the “hhed a serious loss to the t} 1 ® improvement in financial position is the outcome of ’ fto? effected during the year P r <nh oti °n of business, iiii estlmates the revenue for ensuing year as *7.700,000, and the expenditure £6,200,000, LAND SETTLEMENT .There were 1,009 holdings, compris. ing approximately a total area of 182,789 “res, opened for selection in 1924ment , acre ? of Crown settlement. national-endowment lands, and reserves, subdivided into 750 sections were selected on freehold and leasehold tenures, and 530 miscellaneous leases issucd > “IPPrising an area or 117,000 acres. The balance of the Jeviot sections were balloted for and disposed of, there being a keen demand for this class of open sheep-coun-try. At the present time an area of about 480,000 acres of Crown, settlement, and national endowment lands is open for selection. An area of 2914 acres was set apart for selection by discharged soldiers, whilst proclamations- were issued revoking the setfing-apart of an area of 9114 acres which had been proclaimed for soldier settlement. In connection with modern town- . planning proposals,. . competitive schemes are being invited in connection with the planning of. model suburbs at Orakei, Auckland’, and the Hutt Valley, Wellington. LAND AGGREGATION i ' Although there is no particular Indication that land aggregation on a serious scale is taking place in the Dominion,, the Government is desirous of protecting as far as possible small settlers’ holdings from absorption into large estates. With this in view it is proposed to apply a check by means of the duty on conveyances, tbe present rate of which is £1 per cent. This -rate would under the new scheme operate on transfer of rural land to a holder who will not have with his new purchase an excess of a fixed capital value in land. Any acquisition above that value, however, is to be subject to an increasing percentage rate to a maximum of 8 per cent. The proposed method should appeal to all who desire to sea the settlement of the country maintained on a basis of opportunity for the small settler, and fuller details will' be submitted to honourable members at a later date.

DISCHARGED SOLDIERS SETTLEMENT ACCOUNT From the inception of the scheme of the discharged soldiers settlement in 1915 to the end of last financial year advances have been made to discharged soldiers as follows:—Discharged Soldiers Settlement Act, 1915—Advances on current account, £4,663,000; advances towards purchase of farms market-gardens, orchards, and discharge of mortgages, £8,938,800; advances towards purchase and erection of dwellings,. etc., £8,605,900; 22,32f> returned soldiers, £22,208,300. During the period the mortgages have run, receipts from the sale of stock, wool, ana other farm-produce, and repayment of loans under the instalment system, amounted to £3,889,800, the reoeipts leing 17.5 per cent, of the total capital advanced. Arrears outstanding on interest and principal amount to £530,755, while the sum of £224,195 was outstanding as postponed instalments. The total advances paid out during the, year amounte4 to £717,340, representing readvances on current account, discharge of commitments of previous years, as well as loans authorised. The total amount involved in . the settlement of discharged soldiers is a 3 follows: ■ . Loans raised under the Discharged Soldiers .Settlement Act, 1915, £6,590, 336. * Advances from accumulated surplus, £13,500,000. Loans for purchase or estates under Discharged Soldiers Settlement Branch of the Land for Settlements* Account, £3,222.050. „ _ , Lanas purchased out of tne Land for Settlements Account and set aside for discharged soldiers, £2,514,000. Purchases out of the Native Land Settlement Account (approximate), £750 000. Capital, therefore, provided from all sources for disoharged-soldier settlements totals approximately £26,57b,Revaluation under Discharged Soldiers Settlement Acts. The approximate reductions authorised by the hbard are as follows:—Reductions m capital value of leaseholds, £1,608,800; reductions in mortgages under section 2of the Discharged Soldiers Settlement Amendment Act, 1917, £672,000; £2,280,800. m . State Forest Service. —This service has now completed five years, as a separate State department. Below are shown the net revenue of the account and the payments under the vote for that period:—l92o-21. receipts £19,697, ■ payments £79,551; 1921-22, £30,836, £107,582; 1922-23, , £66,746, £85,410; 1923-24, £98.277, £96,044; 1924-25, £169,196. £114,298. ' The capital. of the State Advances Office at March 31st, 1925, amounted to £26,776,899 : an addition of £4,593,374 last year. This latter sum was to provide the extra funds for advances required for developmental purposes, the acquisition of houses, and? particularly to assist those farmers whose mortgages had become due on the expiration of the moratorium. ■ The advances actually paid over numbered 4533, and amounted to- £5,238,880, thus furnishing continued proof of the assistance rendered to settlers and workers throughout the Dominion in respect to their financial requirements. For the purpose of building houses and acquiring homes a large sum has been advanced during the last six fears. The following loans were authorised from April Ist, 1919, to March 31st, 1925: —For housing purposes: To settlers, £3,454,093; to workers, £6,484i224 . to release mortgages on house properties—to settlers, £1,346,498; to erect workers’ dwellings— to local authorities, £634.145. Total, £11,920.960. Amounts advanced by the department increased from £1.575.105 (set-, tiers £978,395. workers £272,860, local authorities £324.150) in 1914 to £5,238.880 (settlers £3,516.130, workers £1,383,945, local authorities £338,805) in 1925. HOUSING The Government is continuing the policy of rendering all possible aasistanoe to overcome the shortage of houses. It should not. however, be expected of th&. State alone to provide the meads of meeting the difficulty, and the housing problem will not be solved until private capital is more extensively employed than has been the case in the immediate past. The following table shows the extent of the assistance towards the erection and purchase.-of - houses rendered by the State during the last six financial years:—State Advances, £9,940,317; discharged soldiers (urban.areas), £B,345,311, (farm properties), £1,186,000; Railway Department (State employees), ■ £465,655; Public "Works Department. (State employees), £227,640. Total £20,164.923. In addition during this period the State Department granted loans for housing purposes to local authorities totalling £634,145, but' the number of houses erected is not known. PUBLIC DEBT The gross public debt at March 31st, 1925, was £227,814,647, as compared .with £221,616,361 twelve months previously. The debt is. allocated as follows :—Ordinary £119,936,859; - war ' £76,631,722; State Advances, £21,436, 180; Discharged-soldiers settlement, £9,809,886; £227,814,647. The increases .ire—Ordinary debt, £2,646,320; State Advances, £4,33s,6sßDischarged soldiers, £15;770; £7,000,748, while War debt has been reduced by £802,462, leaving the net increase in the gross debt at £6,198,286. Payments amounting to £1,851,930 were made in 1924-25 in respect of £27,532,164, loans advanced by the Imperial Government, which/ «were funded in terms of the agreement dated September 6th, 1922. Reference was also made to public debt repayment, it being stated that it was desirable that the change outlined in the Bill already circulated should be made, in order that the State might' benefit by the savings that would accrue from the actual reductions of debt. The position regarding free-of-inconie tax securities, the 1925 loan and its allocation was given as un- : der: £ - Public works (including railway construction and ad- , ditions and telegraph extension) 3,500,000Electrie supply ...;.. 500,000 Railway improvement authorisation 500,000 Main highways . 500,000 State Advanoes— Settlers 1,000,000 Workers 1,000,000 Reference was also made to taxation and its equitable distribution (details will be found under a separate beading). THE YEAR 1925-26 ESTIMATED CREDIT BALANCE £3,151,190 Speaking of the estimated receipts and expenditure for the year 1925-26, tho Minister anticipated substantial receipts from Customs revenue and the principal business departments—Railways and Post and Telegraph—and summarised tho results as follow Revenue £29,600,000 Expenditure ... £29,024,616 The difference, £575,384, will bo ro-,

quired to provide for supplementary estimates and for taxation reductions and concessions now under consideration. As already stated, it is proposed to transfer up to £1,000,000 from Ordin-ary-Revenue Account to Public Works Fund. - The position of the Ordinary Revenue Account at the close of the year I estimate will he: — £ £ Balance forward April Ist, 1925 4,150,806 : Add estimated revenue 29,600,000 33, / 00,806 Deduct:— Estimated expenditure' ......... 29,024,616 Supplemen t a r y estimates, taxation and other c o n c e s siotis (say) 575,000 Transfer to Public Works Fund (up to) 1,000,000 Estimated credit balance on « Marc li 31st, lfi'-’O £3,151,19!)