FINANCIAL STATEMENT.

Opunake Times, Volume V, Issue 195, 17 July 1896, Page 2

FINANCIAL STATEMENT.

LAST YEAR’S SURPLUS SET DOWN AT £215,658. In the House on Tuesday evening the Colonial Treasurer, Hon, E. J. Seddon, delivered the Financial Statement. He expressed regret for the cause of the delay in bringing it down, and referred to bis late colleague (Mr Ward) in feeling terms. REVENUE ACCOUNT 1895-96. The results had considerably exceeded the late Treasurer’s expectations. The figures were: Revenue ... ... £4,556,015 Expenditure ... ... 4,870,481

Balance ... ... £185,534 Adding the balance from the pre-. vious year of £180,024 and deducting the amount transferred during the year to the Public Works Fund, £150,000, left a net surplus of £215,558. This surplus, Mr Seddon claimed, conclusively proved the wisdom and success of the Government system of finance. He showed that the Customs revenue had exceeded the estimate by £79,526 and the stamp revenue by £29,962, and railways by £29,582. The last mentioned item was specially satisfactory, considering the substantial reductions made for the benefit of the public during the year. An additional £27,600 was received in connection with debentures issued against against accretion of sinking fund for the year. The total increase of revenue was £150,000.

EXPENDITURE. On the expenditure side of the 1895-96 account, there was an increase over the preceding year of £103,76,9. The expenditure on annual votes exceeded that of last year by £94,059. Permanent appropriations exhibit an under expenditure of £3829, including £20,500 advanced by Government to the Advances to Settlers Office to provide for interest and other charges. Interest and sinking fund show a decrease of £33,114, but he did not claim this as a saving, because the previous year’s expenditure included in first quarter, the last of the old method of providing for interest and sinking fund. The permanent charges of last year exceeded the preceding year, notably in amount contributed in subsidy for charitable purposes. He analysed the expenditure under the heading of annual votes, showing that in the Postmas-ter-General’s department the increase was £32,296, £II,OOO of which went to the railways in excess of amount paid the previous year for carrying mails. Expenditure on education had also increased owing to increasing population. The railway expenditure had also increased, and also the Lands Department expenditure, arising from the successful settlement of the people upon the land by his colleague. Police and Defence Department showed an increase. The former obviously had needed strengthening.

PUBLIC WORKS FUND. The Treasurer said that commencing the year with a balance of £268,526 receipts in Public Works Fund have been small, only £2272, and £150,000 transferred from the Consolidated Fund. Expenditure was £38,964 more than last year, but it was imperative to push on with urgent public works, such as reading for settlement purposes, extension of the telegraph system, increased accommodation in public buildings, and our permanent force and volunteers required to be Supplied with arms and ammunition, or for these to be kept iu store ready for any unforseen emergency. At the close of • the year the balance will be found to have been only £31,150, At credit of part 2 there was a balance of £26,605 to commence the year with, to which £IO,OOO was transferred from the “ Deposit ” account opened under section 4 of “ North Island Main Trunk Railway Loan Application Act 1886 Amendment Act, 1889. The expenditure during the year amounted to L £22,682, leaving a balance* at the': close of the year of only £18,923. The customary tables, &c., attached to my Statement —lands improved, and Native Lands Purchase Accounts, to provide for expenditure made out of Lands Improvement and Native Lands Purchase Accounts, show debentures amounting to £104,000, and £160,000 have been created and sold and pro-. ceeds placed to individual accounts.

LAND FOB SETTLEMENTS ACCOUNT.

A number of estates were purchased during the year -under the authority of the Land for Settlements Act, 1894, ■and to provide for expenditure amounting to £168,467 it became necessary to create aud sell debentures under the Act amounting to £163,200, which amount, iu addition to £6070 received from rents, &c., of land already acquired was carried to the credit of separate account, in which, at the close of the year, a balance of £1357 is shown. GOVERNMENT LOANS TO LOCAL BODIES.

Particulars of the sums raised for this purpose were given, the Treasurer stating that the demand from local bodies was such as to show that local bodies were not yet becoming satisfied in the matter of branch roads. It was a matter for congratulation that there were no arrears of interest due by any of the local bodies. PUBLIC DEBT.

The gross debt on 31st March, „ 1895, was £40,886,961; on 31st March last it was £43,050,780, showing au increase of £2,663,816. The net debt on same 'dates respectively was £39,635,032 and £42,271,889, or an increase of £2,686,857. Owing to the inclusion of the million a.nd ahalf three per cent loan and the half million of 8£ per cent inscribed stock issued in exchange for Bank of New Zealand preferred shares, the public debt has been considerably augmented. It must, however, be remembered that this increase of debt does not carry with it an increase of interest charge to the colony. In the case of the half- V million o: per cent stock the 'Bank

of New Zealand has to pay over an equivalent amount of interest in respect of their preferred shares held by the colony, and with .regard to the million and a-half loan the interest paid by borrowers more than recoups (he 8 per cent for which the colony is liable. LAND AND INCOME TAX. Revenues collected daring the year was £864,178, being £14.183 in excess of the estimate. Certain items of revenue not previously, collected have produced about £12,000, the chief contribution to this being from unoccupied native land and business done in New Zealand by non-resident traders. Between December and March last fifty-nine representatives of these traders paid tax imposed by last year’s Act, and since 31st March twenty-six more have paid, • receipts for six months being £4250. I do not, anticipate, however, the second six months will produce a similar amount. Still I feel justified in estimating the revenue for the current year from land and income tax at £360,000 PUBLIC TRUST OFFICE.

This office continues to develop its capability for all public trusts and private trusts, and figures were quoted to show the confidence in the institution since the colony guarranteed by the Act of 1891 the integrity of capital funds of estates. Repeating the statistics of the Public Trustee’s report already published, the Treasurer said as to West Coast Settlement Reserves the administration of this large estateio

the interests of native owners or

beneficiaries throws open for settlement a large area of valuable laud without expenditure of a shilling of public money. > ADVANCES TO SETTLERS ACT.

Statistics were given showing the transactions of this office. He claimed that good had been Hone by the wider distribution of information about the working of the Advances to Settlers Office. During April and May loans amounting to £172,785 were sanctioned, and the enlargement of the scope of the original measure by the amendment passed last session had rendered eligible for advances many satisfactory securities. Though there had been reconstruction of the board this had not been followed by any relaxation of the prudence with which advances had previously been authorised, and complaints of the system were fewer. It was a matter for serious consideration whether or not the time has arrived to make a reduction in the amount of the annual instalments, and whether we may not allow an option to borrowers in the direction of doing away with the sinking fund of 1 per cent and making the loans repayable at fixed periods. The management account to the 81st March last exhibits an excess,of -£15,099 in expenditure over revenue, while the profit and loss account, including the interest and other charges accrued, but not payable at the clase of the financial year shows the whole balance of expenditure over revenue to be £31,159. Private capitalists have been and still are offering money and competing for investments on mortgage at rates of interest as low or lower than the rate on loans from the Advances to Settlers Office. Though this is a condition of things znnch more gratifying than that the Advances to Settlers’ Office should be the only recourse of our settlers for money at low rate of interest such conditions have tended to limit the advances made by the board. Advantage has therefore been taken of the authority given by the amending Act to temporarily invest in Government securities of the colony so much of the fund applicable to permanent

in advances as is not at present required for such advances. The ad-* ministration consequently'has arrived at (he turning point at. which the income begins to exceed the expenditure, and afford a balance which will rapidly make good the temporary loss which the accounts now exhibit. DEPARTMENT OF AGRICULTURE. The several industries carried on under the supervision of this department were reported to be in a fairly prosperous state. Last season's crop was the best both in regard to yield and price, experienced for many years. In fact the average yield is amongst the highest in the history of the colony, and this in spite of the loss sustained through winds in parts of the Middle Island. The returns from our dairy industry have not been so satisfactory. Several reasons may be given for this. The weather experienced last winter told very heavily on cows, consequent they were in very poor condition when coming into profit. The lateness in the season and consequently shortage in the supply of milk has told .on the export of dairy produce. The equality all over has been much better. I think much of this is due to grading. The dairy schools held at Edendale and Stratford last winter for managers of dairy factories proved very successful, and the work of instruction was highly appreciated. Pomologists report that considerable interest is being taken, in fruit culture, especially in the planting of vines for

wine making. Prices for our frozen meat have not been very encouraging. The total exports of mutton and lamb, however, show an increase, but this wholly in lamb. The increase of lamb is 171,209 carcases, less decrease in mutton 42,959, dr a total increase of 128,250 carcases. The several experts have been during the year fully employed giving practical instruction to settlers and others. AID TO PUBLIC WORKS FUND.

On the 31st March, 1891, or shortly after the Liberal Government came

into office the amount available for public works purposes was £718,096, VIZ,, under Part I. of Public Works Fund, £361,989; under Part 11. of Public Works Fund, £356,106. Against this amount liabilities existed to the extent of £240,387, so that the net sum available w%s only £470,709. yet we have been able, largely by

grants from revenue, to o-vrry on our public works in a fairly vigorous manner during the succeeding five years. Tlio time has now come, however, when some further aid to the Public Woiks .Fund is required to enable the very important works now in hand to be proceeded with at any rate to a point where they will bring in a fair return for the money expended. The following are the more important railways now in the course of construction for which increased provision is needed —Thames-Paeroa, North Island Main Trunk, Heleusville northwards, Kaihu extension, Kamo-Hikurangi, Eketa-huna-Woodville, Otago Central, Collins River, Seaward Bush, and the Midland railway. In respect to the last mentioned railway, works are being carried on at the risk and expense of the Midland Railway Company accounts being rendered to the company under provisions of “The Railways Construction and Land Act, 1881,” but the moneys have in the first instance to be provided out of public works. It is advisable in the best interests of the colony to complete at an early date the EketahunaWoodville railway and that in respect to other lines mentioned reasonable progress should be made with work. The Government therefore propose to ask for special provision to be made for these works to amount of £250,000 in addition the amount proposed to be transferred from revenue in aid of Public works Fund, and a Bill dealing with the matter will be introduced at an early date.

ROADING AND IMPROVING CROWN LANDS. With regard to the future of Crown lands, the whole success of settlement must now more than ever depend on roads. Settlement has generally so far outrun the reading operation that we cannot look for any great extension unless the question of providing access is dealt with on a comprehensive scale. It is useless to expect that settlers will undergo hardships necessarily entailed by years of straggle waiting for roads to be constructed. “ Hope deferred maketh the heart sick.” The local authorities have not the means and the Government must in justice to all concerned come to the rescue. By all means in our power roads should keep pace with settlement and unless means of doing this are provided no prosper- 1 ous expansion of settlement can be expected. The great quantity of road work done will be fully stated in the annual departmental reports, but in most of the bush districts many of the roads are as yet unfit to carry the traffic of a settled population. The finishing of the roads must be pushed on to secure successful settlement of the back country. The money authorised to be raised under the “ Lands Improvement and Native Lands Acquisition Act, 1894,” has now been either expended or contracted to be expended and it is proposed to ask the House to give authority to raise a further sum of £250,000 for the construction of roads and other works to open up and improve the lands of the colony. OLD AGE PENSIONS. This was referred to as one of the most important questions demanding the immediate attention of Parliament. After referring to the proposals contained in the Bill now before the House, the Treasurer said that he was of opinion that for the present £200,000 per annum would be sufficient financial provision, which should be found by taxation. Argument could be adduced in favor of obtaining revenue under each scheme mentioned in the Bill, but until Parliament has affirmed the principle which is contained in the measure before the House the Treasurer said he would deter making any definite proposal. FINANCES OF THE CURRENT YEAR. - My predecessor (said the Treasurer) had something to remark last year about shrinkage of revenue. lam on this occasion placed in a more favorable position, for I shall be able to place before you figures which sh6w the elasticity of our resources. I subjoin condensed figures of our estimated expenditure and revenue, and desire to assure members that most careful consideration has been given to the framing of these estimates, so as to endeavor on the one hand to avoid parsimony and the other to avoid extravagance. With every indication that trade and general business relations of the colony have remarkably Improved, I have refrained from unduly inflating estimated amounts to be received from excise, railways, and other sources of revenue.

ESTIMATED EXPENDITURE, £ Civil list 25,700 Interest and Sinking Fund 1,720,763 Under Special Acts ... 347,080 DepartmentalAp’ropriat’ns 2,358,682

Total £4,452,165 ESTIMATED REVENUE. £ Customs 1,670,000 Stamps 692,000 Land and Income Tax ... ■ 860,000 Beer Duty ... 62,000 Railways 1,200,000 Registration and other fees 49,000 Marine 20,700 Miscellaneous 90,000 Territorial Revenue ... 270,000 Total £4,418,700 Debentures for Sinking Fund increases £70,800 ; total, £4,484,000. ANTICIPATED RESULTS AT 31 ST MARCH, 1897. The .estimated expenditure is set down ot £4,452,165, and the revenue at £4,484,000, a surplus of revenue over expenditure of £31,835 ; balance brought over from last year £215,558 ; total gross surplus for March, 1697, £247,393. I intend to devote £150,000 of the surplus to public works expenditure as has been previously done. The balance, £97,393, will more than provide for the usual supplementary estimates.