NEW ZEALAND FINANCE.

Otago Daily Times, Issue 6736, 17 September 1883, Page 3

NEW ZEALAND FINANCE.

TO THE EUITOII

Sill, —I took somo littlo trouble when in AVellington to analytic tlio financial proposals of the Colonial Treasurer for the current fiuancial year, and with your permission I will give your readers the result of my labours. Before commencing, I may state that what follows ia based on tho Colonial Treasurer's Financial .Statement, tho tables attached thereto, and the Estimates cf Revenue aud Expenditure submitted by him to Parliament during tho session just ended, and that tho appropriations, ns iar as I could leain, fell short of the estimated expenditure by only some £2000. I find that the actual ordinary revenue for the year ISB2-3 was ... £3,470,250 And the actual ordinary expenditure • for thp same period was ... 3,035,384 Showing au actual expenditure in excess of revenue of ... ... £ 168,134 Then, for the current year 1883 4 the Colonial Treasurer estimates the ordinary revenue at ... ... 3,573,800 And the ordinary expenditure, as per Estimates 3,CC1,49G To which must be added items on tho Supp'.emeuEstimates amounting to 27,021 ' And for unauthorised expenditure of tho year 1882 3to the oxteut of 77,795 J 3,766,912

Showing a proposed expenditure in excess of the estimated revenue of £193,112 To meet this the Colonial Treasurer proposed an increase of _d in the pound to the property tax, wliich he estimated would produce £85,000, thus showing a deficiency of £108,112 as bo tween tho estimated revenue aud expenditure for the current financial year, but wliich, if I mistake not, will bo very much exceeded, I seoing that for the first four months of the year the acluul receipts. from revenue have Dot reached tho estimate by some £50,000, and if this discrepancy continues for the other eight months the deficiency of £105,112 wifl bo augmented by £150,000. It is quite clear to me that tho private spending power of the Colony is decreasing; if so, as a natural consequence there will be a falling-off of the revenue. Tho Colonial Treasurer in his Financial Statement gave remarkably sound advico. He said : " The remedy for such a depression as we are now suffering from is iv our own hands. ... It consists in an amount of self-denial and self-restraint of which we are somewhat impatient in these days. The remedy is to live within our meaus, both publicly and privately; and there are, I am happy to say, many indications that we are really making up our. minds to follow this good old plan." Now I consider that example is better than precept; but, unfortunately, the Colonial Treasurer does not follow his own advice, in private life, I have reason for believing that retrenchment is the' order of the day. Not so, however, in our public expenditure. Any business man who would carefully examine the Estimates of ordinary expenditure, and who would take two months to look into tho working of the Government Departments, could not fail to como to the conclusion that the ordinary expenditure is extravagantly excessive ; and I feel convinced that it could be reduced by over £100,000 without undue interference with the efficiency of tho public service; and if certain services l at present existing, and which are mere luxuries, were dispensed with, the expenditure might to reduced by at leaßt double that amount. . Thon, again, our expenditure from loans is carried on ia an equally unsatisfactory and reckless manner. Wo have appropriations on the Estimates for the current year from loans for roads to open up lands before salo. Taking one-third of the appropriation for three years would give: For the North Island ... ... £40,302 For Nelson, Marlborough, and Westlaud ... ... ... 16,976 For Canterbury, Otago, and Southland ... ... ... 25.400 And for sundry roads not particularised ... ... ... 3,161 Or a total of ... ... £89,139 But the actual vote asked for and taken was... ... ... £93,052 And for roads and bridges through lands recently purchased _'~ 981 To which mußt be added, under Supplementary Estimates, a sum to open up lands before sale— North of Auckland ...' ... 12,000 And for Taranaki ...- ... ■ 1,000 Making a total of ... ... £112,033 Then, again, from loan for purchase of land in North Island, a sum of ... - ... ... ' 72,000 And, under Supplementary Estimates, for land purchases in Auck- ' land, au additional ... ... 5,000 And for additional surveys, Middlo Island ... ... ... , 8,000 Giving a total from loan and Public Works Fund of ... £197,033 ; Now I cannot see upon what principle the Treasurer could come to tho conclusion that any portion of the above sum should be charged against loan. It appears to me that no reasonable man would demur to the axiom that such expenditure should not be borne by loans, but by tho revenue derived from land, including pastoral rents; and the Treasurer, ih not adopting this course, I hold is misapplying the land revenue. There are several other items of expenditure taken from loans and the Public Works Fund which I condemn as decidedly objectionable and unjustifiable. We find on the Estimates items— For roads and bridges in the North Island ... ... ... £90,1152 In Marlborough, Nelson, and Westland ... ... ... 90,928 In Canterbury, Otago, aud Southland ... ... ... 29,523 Then, in the Supplementary Estimates we find, for grants-in-aid under " The Roads and *Bridges Construction Act 1852," the sum of ... ... ... 75,000 Showing a total of ... ... £286,403

But, as far as I can understand the Colonial Treasurer's Statement, there will be a sum of £28,284 from land revenue to be transferred to the Public Works Fund, providing the revenue comes up to his estimate. This, however, will be more than absorbed by a vote for roads on goldfields, amounting to £39,000, of which Otago's proportion is about one-fourth, or say £10,000, and Canterbury gets nothing. Now, according to the promises made under the Abolition of Provinces Act, all such expenditure wa3 to be tabooed by Parliament, and not a single vote was to be taken for any such works, either from revenue or loan. I now come to a vote for waterworks oh goldfields of £21,000, about one-seventh of which (or say £3000) is for Otago, while Canterbury gets nothing. The proposed expenditure on tho Estimates for public buildings for the current financial year is the very m»dest sum of ... ... £215,000 And a further sum on the Supplementary Estimates of ... 17,054 Or a total for public buildinga ——. throughout the Colony of ... £232,054 This appears to be altogether exclusive of any railway-stations, which are included in the votes taken for railway construction. Then, again, we have a vote for harbour works of a sum of £42,906 (of which the munificent sum of £250 is put down for Otago, while Canterbury gets nothing); in addition to this New Plymouth Harbour Board gets 20 per cent, of the gross receipts from land saleß in the Provincial District of Taranaki, which last year gave it £21,973; and on the Supplementary Estimates we find a, sum of £12,764 for harbour defonces, and £328 for Napier Harbour. From the foregoing it would appear that in addition to votes taken for railways and extension of telegraphs, the appropriations for the current financial year are :— For roads to open up land before sale ... , .-•• , - £112,033 For purchase of land in JNorth Island, and for additional surveys, Middle Island ... ... 85,000 For roads and bridges ... .... 286,403 For roads ongoldfields ... ... 39,000 For waterworks on goldfielda ... 21,000 For public buildiuga ... ... 232,054 For harbour works ... ... 50,058 £831,548 From which I will deduct the Treasurer's proposed transfer from land revenue to Public Work 3 Fund ... - - 28,284 Giving an amount of ... ... £803,264 upon which interest has to bo paid ; while the i expenditure will be quite unproductive as far as providing for tho interest on the money borrowed, It will therefoie be a further burden on

[ the Consolidated Revenue, and that will involve further additional taxation. Now I havo no hesitation iv saying that we are not in a position to bear much, if any, additional taxation; and I venture to predict that unless a chock is put upon our expenditure for Civil Service and unproductive works, tho Colony will find itself, within threo years at furthest, in very great difficulty to meet its engagements—that is, unlofes some unforeseen run of good luck should overtake us, such as tlio discovory of now goldfields, silver-niinos, diamond-fields, or the like,- aud think it will bo.generally admitted that considerable depression exists in the Colony, and moro particularly in Canterbury and Otago. As far as theso two provinces arc concerned, I attribute this doprossion in a great measure to the wet woather during tho lato harvest rendering many of the crops almost useless; to over-speculation in mining ventures, chiefly on tho west coast of thia Island; and last, although not least, to the excessive drain upon the resources of the Colony by lavish expenditure in administration and in unproductive public works. Failure in the harvest returns, losses made by mining or other speculations, added to excessive taxation, all tend to reduce tho spending power of tho Colony. This does not affect tho wealthier nnd middle to the extent that it does the working classes. The former, in times of depression, abstain from entering upon improving works which they might otherwise prosecute, and thus roduce tho number of their employes. Fewer hands are thoroforo employed, tho labour market becomes glutted, employment is difficult to obtain, and competition will of necessity tend to roduce wages. Thus depression, engendered from cither or all the causes I have roferred to, or from any other cause whatever, {nils heavier on those who depend on their daily labour for their> daily bread than it does on the well-to do. It is argued by somo of our co called Liberal members that the property and other tuxes whicli do not directly como out of the pockets of the working classes, do not alfect them. No greater fallacy can, in my opinion, exist than such a doctrine, lt seems to me perfectly clear that taxation, like water, must find its level, that it will permeate through every. clubs of society, and that rich and poor must bo equally affected in degree. Now it must not bo supposed that I am opposed to necessary taxation, and I hold the property tax to bo as fair an impost ns can be levied,' but I do most decidedly object to the raising of taxes merely for the purpose of keeping up an extravagant expenditure for the administration of tho Colonial departments, for unproductive works, or for luxuries which we can well do without. The Colonial Government should, in my opinion, confine itself to economic administration of its departments and to productive public works, such as railways, and theso should only be constructed where thore is a fair proßpect of their contributing something towards paying interest on the moneys borrowed for their construction. Then, again, to telegraph extension and lighting the coast—for these purposes it would be justifiable to raise loans. Public buildings, whero necessary, should bo paid for out of revenue, and all other works should b3 undertaken by local todies out of funds to be locally raised. The Colonial Government should therefore confine itself to tho raising of taxes only for such purposes aa I havo indicated, and for the payment of interest on loans now raised. Here it may be asked how such a state of things is to be brought about. My answer is that the matter rests entirely with the electors. Let them vote only for sterling men—men of principle and sound judgment—and they will bo nothing tho worse lor having a stake in the Colony ; men who, if they promise to socure economy in the public expenditure, will faithfully carry out their promise. Lot them ignoro all thoso who are strong in their professions of being tho working man's friend. These, in my past experience, have .proved themselves to be the greatest enemies of the working man as a rule; they aro always ready to Bupport every extravagant vote, and -where the real interest of. tho working man is at stake, their assumed seal overrides their discretion, and thus they injure the cause which they would fain have their constituents to believe they-have so much at heart. My SO years' experience in politics has taught me that the bost working man's friend ia he who is always ready to deal out ovenhanded.justice to every class, and to socure tha greatest amount of good to the greatost number of persons. It is with much regret that I have to admit that there aro several mombsra in Parliament to whom the honorarium of £210 a session, together with a trip to Wellington, whero they can adopt airs which would ill become tbem in their dwii homes, is of far more importance to them than the interests of their constituents Dr those of the Colony ; men who for the whole year could not through their own exertions »m one-half of the £210 paid them for the three or four months' session. If members sould only bo brought to deal with the. public is they would deal with their own private expenditure, our taxation would be almost ucredibly reduced. I will take, for instance, the expenditure of the Legislative Council, ivhich amounts to £3215 per annum for salaries Duly, and of tho HOU6O of -Representatives to £7335 for salaries, and £8558 for general expenses. Then we have library, for salaries E260; then wo have passages of members EIOOO, and honorarium £24,500—making a total for Legislative Department of £45,168. This is only a specimen of one department; .hero are others carried on in an equally extravagant style, but I would occupy too much of your space were I to deal with them in detail. There is, however, one subject which t would liko to refer to—namely, expenditure in Wellington for buildings from loan. Without a vast amount of.labour I cannot give the axact cost of these for tho past, but should say that it considerably exceeds £300,000 since the Seat of Government was removed. Then wo havo during the last reooss an., expenditure of about 815,000 for alterations and furnishings of Parliament buildings,- and during the session plaus wero exhibited for additions at an estimated cost of £23,000. A new post and telegraph office large enough for the wholo Colony is just about completed, which, I should say, will cost fully E32.000. Plans'of a new gaol Were also submitted to Parliament, tho estimated cost sf which is £32,000, of which £10,000 has been i-oted on account. Then, again, thero was a lesire to have a new Custom-houso erected, ivhich, with the extravagant propensities of Dur Government and Parliament, may be [airly put down at £25,000. This, together with the, additional £25,000 for Parliament buildings, was resisted this session, but I have 00-doubt that unless the public iv other parts ll tho Colony strenuously resist tho vote, it will be carried during the next session. Then i vote has been taken this session for £2000 :owards tho commencement of a new printingoffice, which we may estimate the ultimate cost it at some £16,000. Thus the expenditure, togother with that proposed for buildings in Wellington, would amount from loan to about £195,000, on which interest will have to bo paid. But then Wellington is the Soat of Government, md members seem to tolerate tho expenditure for tho credit of the Colony, notwithstanding the fact that she is staggering under burdens far in excess of what it is prudent to put upon her. The extravagance ia not, however, confined to Wellington only". If I am correfctly informed, the new railway-station in " Dunedin will cost somewhere about £200,000. If so, I cau only say that such an expenditure in the present position of the Colony is simply criminal. The Colony at the present moment can only say be compared to a reckless insolvent trader, who, knowing that the day is approaching when lie must go into the Bankruptcy Court, resolves that up till that day ho will debar himself of no gratification, however costly, on the principlo that "in for a penny, in for a pound. If my time permits, I may possibly, bofore the next general election, analyse the votes of members, indicating to the electors throughout the Colony how their representatives have voted during the present Parliament on the questions referring to retrenchment, and also on their absence when any ■ divisions have boen taken. — I am, &c, William H. Reynolds. Montecillo, September 15.