SPEECH BY THE PRIME MINISTER.

Otago Daily Times, Issue 13812, 28 January 1907, Page 3 (Supplement)

SPEECH BY THE PRIME MINISTER.

FINANCIAL POSITION OF THE COLONY. • LARGE INCREAsFIN REVENUE. In his speech at the conversazione tendered to him at Wellington on the 2«h, bir_ Joseph Ward referring: to th e financial position of the colony, said it wa.s pleasing to be able to note (lie stability shown by the figures. Tho revenue for the last nino months exceeded that for the same period of last year by £612,418, every item except territorial revenue showing an inoreof.e. The incrcasee v.ero as follow: Customs'£2o9,ooo. railways £108,000, stamps £130,000, lam) tax £5600. At tlio 31st of March next lin predicted that tlio revenue would reach £8,276,000, or nearly £70,000 more than last year. This might seem a high estimate, out when they remembered that the first nino months of the financial year had ehovrn in average increase of £200,000 per quarter Ihe did not think he wae over-estimating when he set tho revenue receipt* for tho current quarter down rs only £80,000 more than for tho March quarter of lost year. His Budget estimate for tho present year was £7,801,000, but if his anticipations for the remaining portion were realised there should be an excess of revenue over ert.imate of £475,000. The expenditure for the nine months ended December 31 totalled £5,569,626, as onanist £5,245,991 for the corresponding period last year—an increase of J83Z3,63*i, tho principal items being education £102,000, railways £112,000, Inhibition £55,090, old-agn pension £45,000 public buildings £20,000. Ho expected when the year's accounts were closed it would be found that they wero well within thu appropriations, and he anticipated tho expenditure out of Consolidated Fund would not exceed £7,750,000, though,' u> be on the Kifo side, he put it down nt £7,800,000 to which was fo be added the sinking fund on tho war loans which he had promised to (.•elab'jeh this year, amounting to £40.000. lu summarisng tlieee figures to give u forecast of the position at March 31, .lie put the figures as follows:— Receipts. Heveirat £8,276,000 Sinking fund accretions .. l>o.ooo Other receipts .... .. IU,(KX) 'Total .. .-. .. .■.£8,368,001) EXF«KDITUEK. Appropriations £7,600,000 ■ Sinking fund on war Ootmn .. 40,000 Excess rewipte orer expenditure 516.000 Balance on .'list Mnrch, 19(16 788,795 Transferred to Public Works

Fund 550,000 Leaving £-238,705 to odd to the surplus. Thorn was available- for further fransfer io Public Works Fund £225,000, which left the estimated balance at 3UI March, 1907, ad £529,795 Compnrati™ Statement of revenue received during the nine moniliE ended December 31, 1306, and tho siimo period of 1005:— 1906. 1905. Increase. Giutcms .. £2,146,676 £1,937,713 £ '218,963 Stamps .. 983,71U 843,681) 139,036 Land tax .. 428,H7!1 37i!,331 50,348 Railways .. 1,790,077 1,610,031 ]80,M3 Income tut .. Ki.Gl'i 10,612 3,000 Beer duty .. 76,775 70,739 0.036 Marine .. 29,330 20,314 3,02ti llcgintratiou and other fees .. 81,1(1! 72,015 9,H8 Miscellaneous H6.137 119,275 0,802 Territorial ~ 150,2&3 160,029 '10,043 Totals ~ X5,8'26,0C0 15.313.612 £619,418 * Decrease. If further transfer k made to Ihe Public Works Fund before tho close of the year the balance would sland at over £750'000, but ho proponed to transfor the whole of the amount of rovcmie appropriated for public works purposes, and when this was done the surplus for tho year could bo set down at over half a million—a splendid record of the progress and development of tho colon} , .

PUBLIC WORKS. • During the past nine nionthe £550,000 was transferred from revenue, and £748,100 of the local million loan had boon received, and also £182,000, balance of last year's loan, also £124,000 for premiums paid by purohasoK. To this was to be added £251,000, balance of the million loan and a further transfer of £225,000 from revenue wa« avuilable Io make tho ways and means for the March quarter £794,000, of which JlO anticipated £420,000 would be spent, leaving £574,000 to carry on from 31st Alareh till Parliament meets. Bonds and otlicr t reccipts amounted to £1000, and this, with the cash balanoo 011 31st March of £428,000, gave tho Government a total ways and meaiia of £1,921,500 to work upon. Of Mll3 amount £1,004,000 was issued during tlio nine months, leaving on tho 31st Decomber last a cask balance of £317,100.

LOANS. ' fcotwitlustanding the disturbance of the money market, Ihe colony found no difficulty in obtaining all tlio money required, whether for renewal or new loans, without going on (he London market. During tho ast 12 months two millions of debentures Juki been renewed, and fresh loans amounting to over two millions .had been raised for public works and land settlement purposes. Renewals and loans were obtained on mo»l satisfactory terms, bs high as 2 per rent, premium being got on eome sales <>l 4 per cent, debentures, while 1 per cent, premium was obtained on some renqwals Inscribed stocks in London held a very hifth position, and had advanced considerably a.s compared with last year, in spite of tho disturbed market. The outlook for the now year was bright, and with steady revcimo increases a substantial surplus was to bo looked for.

THE EXHIBITION. < lhe Prime Minister javo come particulars of tho financial prospects of the Exhibition. According to tho general manager's forecast, tho expenditure to date had been ±.155.000, of which the Government provided £75,000, and it would take £155.000 to cover all expenses in connection with the Inhibition, assuming it would close on tho date at present intended. The receipts lo date were £28.518, end the estimated total receipts wwo £105,000. leaving the buildings, statuary, etc, to cover tho balance of £55,000. Tho amount of estimated loss was £35,000. The first million people W ould havo ]ias«ed through tho turnstiles by next Saturday, beforo three months of tho Exhibition had passed.