THE PUBLIC ACCOUNTS.

Otago Witness, Issue 2250, 15 April 1897, Page 20

THE PUBLIC ACCOUNTS.

STATEMENT BY THE COLONIAL THE AS UK ER. A SURPLUS OF £340,000. Wellington, April 7. The following memorandum by the Colonial Treasurer (the Hon. R. J. Seddon) showing approximately the position of the public accounts on March 31, 1897, wa3 laid on the table by the Treasurer with the leave of the House: — The necessity for laying this memorandum on the table of the House arises, as hon. members are aware, from the far l ; thsib it was deemed advisable to hole* \ special meetiug of Parliament for the pur jse of enabling arrangements i to be made fo' a attiog representation of the cjlony ai the ce'ebra'ion iv honour of the sixtieth anniversary of her Most Gracious Majesty's reigu. To get the accounts audited and paßsed i« impracticable, for members will remember that accocriisig to the existing law tho Treasury has 30 days allowed for the preparation and printing ov thu abstract, of the revenue aud expenditure nt tbe jesr, uivl within fthi« period the ab3trac l has u> ba aenb lo the audit offic-ra, who have a further period of 14 tfsys -U'owed for the examination aud passing of t.he accounts. Hon. members may think this is a loritf period to be allowed when it is compared with the rapidity with which the public obtain somewhat similar information of the year's reßiilta o? the Australian colonies ; bun & litMe reflection will ! show that the cases are dissimsLtr, inasmuch as they have ia each colony only oue or two centres, and, more important still, the information supplied hzi not been audited, while in i our colony, with quite 10 centres, wa are I obliged to wait until the accounts reach the j Treasury from long distances, -to ba afterwards [ examined and passed by the Audit Officars [ before they can be finally includon in th * publis , accounts of the colony. Wit'a this explanation I will now proceed to givi* you h oloie approximate result of the p*s*i year's fiuanciivl operations, which will be aam?ient)y accurate for all practical purposes THE SURPLUS. The information which I know you are all \ anxious to ascertain if» as to tbe surplns, for there really is a surplus, aud a handsome one too. Well I make this to be at least £J40,000, arrived at thus : — Receipts for the year ... „. .M. M i:4,79rf,000 Expenditure for the year „. ... 4,671,000 Excess of receipts over expenditure ... £ 125,000 Add balance to begin the year with... 215,000 Surplus at the end of the year £340,000 ! This is an exceedingly t-atisfootory result, I ; am sure -you will be willing lo allow, aud these | figures would have been batter still had it not i bsen for the necessity to charge three half- ! j yearly payments of interest on the advances to ' \ settlers loan of £1,500,000 during the past year, so as to brinsr the accounts in line with the dates upon which the interest is paid over to the Bank of England in London. This extra half-year's interest having *o be met has decreased the surplus by £^2,50 p. The Advances to Settlers Ofliae is doing well, for, notwithstanding it has had to pay £87,500 within the year, it has only required an advance from the consolidated fund to the extent of £26,000 for this current year, and hsreafter, of course, only £45,000 per annum will require to be paid for interest on the £1,500,000 loan ; and there is a certainty that t'u« office will soon be able to provide for each year's charge and to pay off the arrears of debb due to the consolidated fund. I do nob propose to weary you with a mass of figures connected with the results of last year's Treasury work. I have already reminded you that such figures as I sha'l b^s able to place before you mu9t not be considered final, but only approximate, aud therefore I am sure you will excuse me if I confine myself to main features of our receipts and expenditure. As to THE BECEIPTS FOR 1595-97. The receipts for the financial year 1896-97 were estimated ai £4,484,000, while the actual receipts, f-o f-ir as I can at present learn, have reached £4,796 000. Customs revenue exceeded the estimate by £148,500, railways by £86,000, stamp* by £38,500, land and income tax by £17,500, territorial by £5500, and the remaining heads "of revenue aud receipts by £16,000. These tell their own tale, and it is quite superfluous to observe that they evidence a substantial increase in the .material prosperity of our colony. EXPENDITURE OF 1895-97. The approximate results of the revenue can be ascertained with a considerable degree of certainty, but it more difficult to furnish au estimate of the actual expenditure. It has to be remembered that on the close of business on the 3lsb March last over £230 000 of imprest money was outstanding against the ordinary revenue account of the consolidated fund. This amount is reduced by the department dealing with itnpreslees' vouchers, and charging the votes with the raopective amounts paid, and also by cash repayments byimprestees of their respective balances on the 31st ult. If, on the one hand, we estimate the expenditure of imprests at too large a figure, we unduly reduce the surplm ; while, on the other hand, if our estimate is too little, the surplus is proportionately increased. The Treasury and the departments concerned have, however, m«.de very careful estimates, and I a,m able to submit the results with every confidence. The figures, however, must not be accepted as fin&l, but the alterations are not likely to bs large. I estimate our permanent expenditure, including i interest and sinking funds, subsidies, payments to local bodies of endowment inorjey, pension?, &c ,at £2,076,000. My estimate for the year was £2,093,000. For annual appropriacion members were good enough, to vote

! £2,438,000. I do not anticipate, however, that the final expenditure will reach , more than £2,420,000 under the two heads, therefore a saving of some £35,000 may be expected. Economy has been rigidly practised 1 by the department?, but membsrs, I am sure, ' do nob expect large savings to bo effected, as it | would bear the appearance of having asked the Committee for sums in excess of what was really i required. To this expenditure there has also to be added £150,000 transferred lo the public works fund out ot the previous year'a surplus, and also £26,000 advanced to the Advances to Settlers Office. I do no', propose on this occasion to submit j what I call minor accounts connected with the • consolidated fund, «uch as accounts of local bodien, deposits, &c , but I shall at once pass on to the more important account?, and take up ths state of ihe PUBLIC WORKS FUND. Part I of this fund commenced the year with a balance of £31,150, and also received "£150,000 from the consolidated fund— tho surplus of the previous year. Other miscellaneouAreceipts swelled the available balance to £lw 413 During the year we were able to raise £750,000 of the £1,000.000 authorised under " The Aid to Public Works and Land Settlement Act, 1896, jr ""*Snd of this £375,000 was credited to Part I, making the total receipt «, including the balance brought forward, £571,413. Tne expenditure, after the imprests have been duly accounted for, I estimate at £420,655, leaviug a balance of £150,758. £250,000 has still to be raised under the acb I have just mentioned, and so there will be further fuuds available for this account to the amount of £125,000, which with the amount in hand and the usual assistance from thi consolidated fund should be amply auffiaient for our requirements during the current \e*r. Part II had a balance of £13,900 to begin the year with. Tho expenditure will be chirged so as to clear off this balance. This account is now practically merged in Part 1, where further appropriations for the" North Island Main Trunk railway have beeu provided. The l.tnds improvement aud tun native j lands purchase accounts lmv<s aluo been placed in fund 3to the Amount of £187,500 each through the raising of the bhree-qu*rter.<i of a million und»r "Toe Aid to Public Works aud Land Settlement Act, 1896," and wish the proceeds of debentures amounting '• to £52 000 raised under the act oi 1894. The ; e3lirns.!.cs exoundituca of the ia-vls improve- ' menb account is set flown at £109,000, ie'iviug f « balance ot £134,500 to go on *;t.'\. ; The Native Lands' Ptfrch*«p Account. — The 1 ssponditu'tt I estimated at £127,000, leaving a • b*!auce ot £97,200 to provide i'or purchases I cJuring thf current year. At I have before i mentioned, there is atiil a balance of a quarter | of :<■ million fco be raised under " The Aid to ! Publ'c Works aud Land Settlement Act, 1896," ! and whi'a tbe proceeds hay« bee.n receivad the j lands Iraproveman"; aouounb aud tho Native j Jands purchase accounts will each be entitled tn ba credited with £62,500 of the £250,000 to ba raised. With these aa ms available I am satisfied that tho works in progress to improve and open up the roading of the country will ba steadily con- ' timied, and further lauds can be acquired from ' the Natives, aud our engagements in this j direction successtully carried out. Some Krge estates have been purchased under "The h-Knd for Settlements Acr, 1894," for which purpose £297,300 has beeu raised during the past year v and ibis amount, with some £20,000 derived from rents, ha 3 been Mifficient 1 to provide for au expenditure .oE £312,500, j leaving * bilance in hand of £6000. j I shill presently deal very briefly with the ' operations with the public debt and conversion accounts, but at this point J think ib may be ' convenient to recapitulate. The surplus of the consolidated fund amounted to £340,000, of which I hope to be able to aid the public works ' expenditure lo th« amount ot £200,000, leaving £140,000. Of this bilanoe of £140,000 . I think it would be expedient to seb aside £50,000 for bhe purposes of assisting the re- j quirements of the.Und improvement and native lands purchase accounts in case the available balances of these accounts should not prove sufficient for the expenditure which it may ba found absolutely necessary to incur. With this extra assistance it is quito certain that I shall have plenty of fuads fco c*rry on the public work* services of the country and for the acquisition of Native lands for the current financial year. The balance of the public works fund was £150,000. The proportion of the balance of the loan is £125,000, and aid from the consolidated fund £200,000, making the total available balance for the , current year of £475,000. The balance of the lands improvement account was £134,500 ; proportion of balance of loan, £62 500 ; aid from the consolidated fund, say, £25,000 ; to^'al available balance for tho current year, £222,000." The bilauce of the Native lands purchase account was £97,000 ; proportion of balance of loan, £62,500 ; aid from the consolidated fund, i siy £25,000 ; total available balance for the current year, £184,500. These balaucas' will ' sufficiently prove that our resources for tho current year in respect of our loan accounts are ample aud trill cover all possible requirements. CONVERSION. The operations within the conversion account last year were small, and the table speaks for itself. lam able to place before you the usual table of Tim PUBLIC DEBT. The gcoas total has increased by £1,315,838, and the net debt by £1,280,632. Of this sum, however, one million is absolutely represented by equivalent a'ssts, and the interest thqpeon is paid back to the Treasury by those who have objained the benefit of the exper diture. Of the million authorised by " The Aid to Public Wi'rks and Land Settlement Act, 1896," £750,000 has been raised Deposits amounting to £136.015 under "The New Zealaud Consoh Act, 1894," have been received ; £93,800 of debentures under " Tue Government Loans to Local Bodies Acb, 1885," have bien issued ; purchases uuder "The Land for Settlements Act, 1894," have required the issue of £297,300 ot debentures, and for the purpose of opening roads and giving accsss to lands £52,000 of debentures under " The Lands Improvement and Native .Land's Acquisition Acb, 1894," bava baen.sold; £70.300 was issued as sinking tund debentures under " The Consolidated Stock Act, 1884," but of this amount only £20,00 D was issued against the accretion of sinking fund of the loans to lecal bodies, and £56,891 of stock \va3 inscribed at 3 and 3^ per ceal. for the purposes of conversion aud redampbiou of other Government securities. On the other hand, we have pfcid off or redeemed various parcels of debenture sbock amounting to £87,068, and have converted £53,400 of debentures into lower interest- I bearing inscibed stock. EXPECTATIONS FOR 'IKE RECFSS. Of course you will expect; me 10 tay some- ' thing abouo the financial expectations during ; the time between, the 31st March last past and i

the time when further supplies will be granted. In the first; place I shall ask you to extend the appropriations from three months (as provided for by the Public Revenues Act of las!; session) to 28 weeks, or, say, to the 14th October next. The Public Revenues Act provides that no payments shall be made for any services than those for which provision was made in the respective Appropriation Acts and Estimates of the preceeding year, or in excess of the'scale therein set forth. You therefore tie me down in a narrower compass than would be the case if I were to ask you merely for supply ■ under Imprest Supply Bills. S jma effect of this restriction of appropriations is to drain the £100,000 provided for unauthorised expenditure, and it happens frequently, so the Treasury officials inform me, that the limit of £100,000 is practically exhausted by the time that Parliament usually meets, and Imprest Supply Bills are obtained. Under these circumstances lam going to ask you for a temporary increase for unauthorised expenditure, so that the limit of £100,000 may be raised to £150,000 for services nob provided for betwsen this aud the 14bh Ostober next. You understand that all unauthorised expenditure incurred before the Estimates are passed has to be included in the Estimates aud appropriations of the year, and of course the whole of the expenditure made under the ex 'ended appropriations. Last year's appropriations for consolidated fund services amounted to £2,438,000, one half of which, for eemces required to the 30th September next, will amouut to £1,219,000. Add to this a moiety of the permanent charges, £1,047,000; and additioual ejtimated expeuditure for two weeks, £175,000 ; making a total for the twenty-eight weeks of £2,441,000 required for expenditure. OUR RECEIPTS during last year produced, a f t I have stated, approximately £4,796,000, but of this amount £377,500 for land and income t*x was received, and will again bs received during the second half of the year, so that this amount will not be available uutil after October. The lull iv raining business in the Auckland provincial district may affect tho receipts from customs aud stampts, and unhappily the accounts of the grain, crops from tho Canterbury and North Otago districts justify me in thinking lh»t our railway revenue may also suffer, but let it be understood that I am by no means depreciating the probabilities of our income. But as I thoroughly believe in strong finance, I think it is bent to place the position candidly before you. Our resources may ba flbit'iri thus :—: — ReceipU for \mt year £4,796,000 Duduot laud aud income tax £377>500 Deduct sinking fund debentures 70,300 447,806 £i,318,200 A moiety of £4,348,200 is, say, £2.174,000. To this may bo added tha unappropriated balance of the surplus, £90,000 ; sinking tund debentures lo be issued, £73,000 ; additional estimated receip's for two weeks, £167,000 ;— • miking estimated receipts, £2,504,000. Hstimabed expenditure (as above) £2,441,000 ; leaving an excess of receipts £63,000. . I have pat theß9.,ii!»ur.es befure you so as to show you that thece is no uncertainty as to the finances being amply sufficient to meet requirpments until Parliament is ftgain in session. I j must at the same" time"* state that the first half of the year is very muoh the worse half so far as 'the Revenue is concerned, i On the other hand, the expenditure is scarcely likely to reach the figures quoted Members will notice that I have included a sum of ; £73 000 for sinking fund debentures to be j issued during this' current year, bub I am ' carefully considering whether tho timo haß nob arrived, as the finances of the colony appear to be able to bear it, to dispense altogether with the issue of debentures againut the accretions of sinking fund derived from the loans to local bodies. Probably next session I shall ask you to have the law amended in this direction. 1 hope that in placing befora the House this memorandum and accompanying tables hon. members will recognise tho difficulties there are in the way of giving the necessary information in a more complete form. I trust, however, that I have sufficiently demonstrated that there is no cause whatever for anxiety in respeit to the financial position of the colony.