THE FINANCIAL STATEMENT.

Oamaru Mail, Volume II, Issue 487, 20 November 1877, Page 2

THE FINANCIAL STATEMENT.

The Hon. Colonial Treasurer (Mr. Larnacli) made his Financial Statement last night, a full report of which lias been forwarded to ns by the Government. It is far too lengthy to give in exteim in our columns without crowding out other matter of local interest, and we have therefore extracted those portions which are, we think, of such importance as to warrant us in making an effort to find room for them. THE LAND REVENUE TO BE COLOXIALISED. Although the land revenue has nominally been regarded and treated as Provincial revenue, yet, in point of fact, and actually, it has, by various enactments during the past yeaivs, been gradually encroached upon and ;i!>surbcd to such an extent that in vealicv the idea that a large proportion is sivixilable for localisation is a delusion only calculated to mislead the minds of the people as to the real position of affairs, such proportions not being, for the most part, derived from actual land sales, but from Treasury bills. Under such circumstances, it is desireable that the subject should be placed upon a more certain and satisfactory footing, with which view, and for the purpose of simplifying the public accounts, we promise to do opealy and straightforwardly that which predecessors in office have hitherto been doing indirectly and disingenuously. We mean to make the land fund Colonial

revenue subject to all the obligations which the Colony has undertaken in respect thereof, such as the cost of administration, the cost of survey, immigration, interest on Provincial loans, and so forth. It is our intention, however, that 20 per cent, of the land revenue shall be localised by law for the purpose of being expended by the local authorities on roads, bridges, and public works within their respective districts, and further we shall ask Parliament to a<n'ee to one uniform land law, whereby the public estate, subject to classification, shall be sold at uniform prices throughout the Colony, whether on a system embracing free selection, deferred payments, or otherwise. I wish it to be understood that if administrative reforms and reduction of expenditure can be efl'ected to an extent which may allow of any increase of the proportion of 20 per cent, referred to, such proportion shall have the benefit of it accordingly. On this subject 1 desire to add that while the circumstances into which the Colony has been permitted to drift render it imperative that the land revenue should be dealt with, as we have first proposed, my colleagues and myself fully recognise that one of the most legitimate objects to which the revenue ought to be applied is to render available for settlement the particular locality from whence it lias been derived. In fact, this ought to be regarded as one of the main conditions upon which the purchase money is paid. We are, therefore, of opinion that in apportioning the public revenue throughout the colony, such conditions should be kept faithfully in view. Before proceeding further, I may be permitted to say that the Government look forward to being enabled to submit to this House next session well-considered proposals, based upon sound data, whereby important districts may be opened up, and connected with the main railway lines by means of branch lines to be constructed out of the proceeds of the land which will be rendered valuable and accessible by such branch lines. There are at present, as honorable members are aware, extensive areas of public territory thoughout the colony which are unavailable for settlement, and which must continue to be so until rendered accessible by railways or roads. 1 his is a matter in respect to which the Government looks with favor upon the action that has been taken during the present session by private members, Wo are of opinion, however, that it is a subject which, in the future, ought to be dealt with by the Government, and we shall be prepared to devote to it that consideration which its importance deserves. proposed new i.oax. Sir, —I desire before 1 conclude to say a few words upon the views of the Government as to the extent of the further borrowing powers, to which we shall have to ask the Committee to assent. It has not been easj' in the midst of the hurry of the session, with all political and departmental business appertaining to offices on my hands, to have met you with a statement of our views on this subject to-night, nor has it been less difficult for my lion, colleagues and myself to arrive at a determination as to the sum necessary to be borrowed to meet our present requirements. Sir, it is our intention to ask the House to consent to a loan of L 4,000,000, feeling assured that the whole of this amount will be wanted. We propose, Sir, to redeem the guaranteed debentures to provide fur our public works for provincial liabilities, for other necessities of the year, and for all lloafing debentures now due by the colony. llut. there is also the million due to the two Banks which we have not provided for here. At present we have loans raised in London, loans raised in Sydney, loans raised in this colony, and wo have the Treasury Bill before referred to. The Government deem it desirable that this system should cease, and that there should be one sort of funded colonial indebtedness for this colony, showing at a glance the entire debt on current or working account ; showing our annual revenue and expenditure under their several principal heads ; and that the numerous small and mystifying accounts and balances at present existing under the public account should be done away with, and that we should as far as possible have but one creditor —I mean the London money market. The practice of concealing, perhaps unintentionally, the amount of the colonial indebtedness by the issue of Treasury bills and the raising of temporary loans in the colonies has an effect even worse than imposing on the Home creditor. It encourages the people of this colony to fancy their liabilities to be smaller than thoy really are, and to agitate for a greater expenditure than tlio colony can afford. Fuller details of these questions will be given when the Loan Bill is brought down. TAXATION. We shall, however, during the recess, seriously address ourselves to the consideration of large reductions in the pubexpenditure, which, we have reasons for believing, can be carried out, and wo will also earnestly consider the question already discussed in this House, of altering the present system of taxation in this Colony. With a view of more equally and fairly distributing its burden upon the whole community. Should our land receipts keep up, I apprehend that it will not be necessary to attempt to raise a larger revenue from tho people than is now drawn from them, but should that source of revenue fall off, we must be prepared to submit to heavier burdens to keep our obligations to our creditors and conduct the business of the country. After the experience to be gained during j the recess we will be in a better position | to offer an opinion on the Bubject when ' Parliament meets next year.