FINANCIAL STATEMENT.

Rangitikei Advocate and Manawatu Argus, Volume XXXII, Issue 8866, 17 July 1907, Page 3

FINANCIAL STATEMENT.

Following is tho substaneo o£ Uio Financial Statement dobverc J B _ ‘ Y by the Colonial Treasurer, Sir Joseph Ward■ Financial Statement andTotnSe 0 with thorn. members are no ged of any Iho me ‘ and no t w ithstanding the hlary expenditure wo closed our books tik, list March last with a substantial credit babncoof £717,825, a result which ,must be gratifying to both the House and country. K;EVENIJE>

The, revenue for the year exceeded ■J ht millions, tho highest on record. Tim actual amount was £8,339,075 and compared with the revenue of the previous year, £7,584,309. shows an increase of £814,710, or a little over 10 per Xmt The principal increases were in railways £282,978, Customs £243.029, stamps £104,404, land and income tax 077037 miscellaneous £31,075, and other * f t£r2 i' Q2^ the actual with the estimated revenue there was an excess under every v,Anii Tho Customs estimate was exceeded hv £211,040, railways by £121,390, stamps by £122,237, Land and Income Tax by £58 9 09 miscellaneous by £2(3,885, other heads by £23,318, making a total of £598 075 in excess of the estimates. ' EXPENDITURE.

The expenditure last year also was necessarily higher, the actual sum spent being £7,774,920, or £052,580 more than the previous year. Of this large increase the permanent charges are responsible for £128,003, principally caused by tho payment’of interest on new loans and the cost qf increased payments to old age pensioners. With the increased revenue expenditure may bo looked for, and it is therefore not surprising to find that the departmental expenditure was in excess of that of the previous year by no less a sum than £484,573. Of this amount the railIsvays were answerable for £254,537, education required £88,032, post and telegraph Service cost an extra £40,459, grant to Exhibition £49,500, and tho maintenance Kf roads, now charged to consolidated fund, $25,860. The new sinking fund established for war and defence loans absorbed nearly £40,000. f Comparing the actual expenditure tor Iho year with the amount appropriated, |ve are able to show a saving of £101,383. frho charges authorised by the permanen t appropriations show, as compared with the estimates, a saving of £12,828, while Iho votes for departmental expenditure ibow £188,505, but as credit has been riven to railways for tho excess of revenue allowed by law of £121,396 tho mderspent amount on departmental votes nay bo stated as £07,109. After charging £39,950 for the defence and wav loans md sinking fund account wo have a lirect saving of £39.987 on the estimated fxpendituvb'fof tho year. Tho surplus of £788,795 from the preens year enabled me to transfer from avenue in aid of public works the sum £ £775,000, which, if reckoned at 31 per ent., represents a saving to'tho State of 127,000 per annum for interest. The irgest amount previously transferred oh bis account was £600,000.

' RESULTS. Tho receipts for the year from all jurces amounted to £8,478,950. the exenditure being £7,774,920, leaving a h-plus oh the year’s transactions of ;704,030, which, added to tho amount of 1X8,7(15 left from previous year’s balance, Ete't transfer to public works fund of 775,000, gives us n balance on the 31st larch last of £717,825.

TREASURY BILLS. Honourable members will be pleased to now that in accordance with a promise (qli) in last year's budget £150,000 of the itstanding Treasury bills have been paid I thus reducing our floating loan from 700,000 to £550,000. These bills had lepr'enewed from year tq year and had istctibally become a permanent debt and [is is the first step taken towards clearing le'm off. I hope to make further redemppn from time to time'until they are all lid off,

KINKING FUNDS. The proposal made in last year’s budget establishing new sinking funds in respect certain loans has been given effect to 39,950 representing X per cent on 3,995,000 the amount of loans raised for ar and defence purposes and £50,105 at ;e rate on the amount borrowed for the prpose of acquiring lands for close settlelent have been paid over to the Public trustee and by him invested in securities (turning 4 per cent interest.-, PUBLIC WORKS FUND. [The balance brought forward to comLnqe yhe .year 'with wa5’£492,298 arid Icgipts', were: loan moneys £1,125,080, iansfer from consolidated fund revenue 875.000, other receipts £17,394, making Kotal of £2,410,378. On the .other hand le ordinary expenditure was £2,040,319, giving a balance, after loan charges, at Be close of the year of £350,100, which llth the balance of this 1900 loan, 166,400, to receive gave ua available ways 8d means of £415,800 to start tbe Brrent year with.

I THE PUBLIC DEBT. - IThe gross public debt on the 31st larch last was £64,179,040 as' against P,1i)1,040 at the close of the previous lar or an increase of £1,988,000 for the far. Notwithstanding tho disturbed pile of the money market, no difficulty Is been found in obtaining all the foney required whether for renewal or k loans bn the most satisfactory terms, [premium of 2 per cent being obtained r jnajiy sales and as high as 1 per cent ns received for renewals in several cases, jf the increase of the debt the following bins may be stated to bo of a directly Iterest producing character; —For purpose of land for settlements £596,015 for lilwayi construction and additions to pen lines £5*5,000, for • loads ’to local Mies £180,000,-for advances to settlers [ipOjOOO, and smaller items making a tal of £1,472,399,

LAND REFORM. _ [in order to prevent excessive holdings |d aggregations of estates in land, but at So same time leave reasonable scope for jterprise and energy of our settlers, the raduated Land Tax will be increased on [tales of £40,000 or upwards in unimfoved value, but in computing the value ol psiness premises in town and country and [ the ease of a country estate tho principal pmestcad site will not be included.

[Tho present holders of leases in perbtuity will be offered tbe option of freebid and instead of having to inqur the Lk of auction as previously proposed this ition will be given at a price to be fixed by Ibitration as on tho date on which they lye notice of intention to purchase. The Ipceeds of sales wiU be paid into the Land Sr Settlement Account and be applied in fcuiring new estates for settlement, ibf the existing unsold Crown lands a Bbstantial part, say of 9,000,000 acres, will $ put aside as a national endowment and Ie residue will be open on the optional stem gs at present, save that instead of 0 present lease in perpetuity there will be •‘f renewable lease,” that is a lease for a rm of sixty-six years with perpetual newal for similar terms, the rent for each rm being fixed by the valuation of land rithout improvements) aa at tho comencoment of each successive term. Tho national endowment fund will be isposod of only on tho renewable lease ■stem. Tho 'proceeds from endowment nds will be devoted to education and d ago pensions, 70 por cent, to tho rmer and 3Q pm: cent, to the latter.

native lands. The Native legislation will be proposed pern lines suggested by the Commission ow sitting. LAND ENDOWMENTS. A considerable amount of doubt seemed 3 exist in the minds of bon. members ist session in reference to the areas of md in the several districts to be set side for endowment purposes, and that he proposals may bo fully understood I lesite to state that the nine million acres 'reposed to bo reserved for endowment imposes are distributed proportionately i) each district 'as follows Auckland 100,000 acres, Hawke’s Bay 135,000, Tavalaki 90,000, Wellington 90,000, Nelson 1.350.000, Marlborough 450,000, Westland 1.035.000. Canterbury 1,800,000, Otago 2.250.000, Southland 900,000; total 1.000. LAND FOE SETTLEMENTS. Under the provisions of the Lands for Settlements Acts frequent references to he Compensation Court, in order to arrive at the price to be paid for estates icquired for settlement, are necessary, and • iave_ proved unsatisfactory. An alteration in the present system is desirable. The House will be asked to legislate so ps to provide that the valuation under the Valuation of Land Act shall bo the basis upon which the price is to be ascertained, with 10 per cent, added when the estate is valued at less than i 25,000 and 5 per cent added when the estate is valued at between .£25,000 and .£50,000 and 2i per cent from £50,000 upwards.

GRADUATED TAX. I propose, while making no alteration whatever in the present scale of Graduated Land Tax payable by owners of less than £40,000 unimproyed value, to substitute f n ew scale of Graduated Land Tax for the present one in respect of owners of £40.000 unimproved value and over. This new scale (to be called the initial wale) will commence at £40,000 (unimproved value); with a graduated tax of 8s per cent, and rise thousand by thousand m successive uniform increments of uue-fifth of one shilling per cent max l m um rate is reached £200.000 (unimproved value) when it be . £2 per cent. To this initial ale will be added an additional rate of E Per cent of the scale rate. Business in town and country will be ex-

ompted from tho operation of the above mentioned additional rate and in the case of country estates the principal homestead site will bo similarly excluded. Tho reason for this being that it is not intended nor indeed would it bo justifiable to attempt to have business premises and homesteads cut up or reduced or interferrod with, they do not stand in the way of the settlement of our people on the land and the object of the graduated tax is to prevent large areas becoming centred in individuals or companies. The total Graduated Land Tax on a property of £40,000 (other than business premises) town or country will therefore be 10s per cent of the unimproved value and on one of £200,000 unimproved value £2 10s per cent. These percentages represent taxes of 1 l-5d and fid in the pound unimproved value respectively. I propose to exclude minerals, standing timber and growing flax from assessment for land tax both ordinary and graduated, except in cases where such are held for speculation purposes or as a monopoly and to assess tho profits for income tax.

TARIFF REFORM. A Bill to simplify tho tariff will bo introduced and the Government intend to propose readjustments .and remissions which will facilitate trading operations, assist industries, and last but not least sensibly lighten the cost of many food articles of general consumption. I estimate that the reductions in customs tariff amount to £375,000. This must be admitted to be a very heavy reduction, and it will be found on examination to be chiefly in the direction of reducing tho cost of tho necessaries of life and upon that class of wearing apparel that is largely used by the mass of the people. Among tho principal items are sugar, currents and raisins, figs, dates, ungrotmd spices, and all articles of infant diet which are made free. Cotton piece goods, dress prints, and cotton tapestry, linseed and olive oil and various other items are put on the free list. The duty on potatoes is altered from an ad valorem one to £1 a ton fixed so that tho anomaly of the higher tho price the greater the duty will be removed. Boots, an alteration has been made in tho tariff with the object of keeping out cheap and inferior qualities of boots. !■ lour, the duty will not bo removed owing to tho dislocation, which would bo produced, but if as the result of tho very close and thorough inquiry I am now making I am satisfied that tho present price of bread is due to any monopolistic ring or combination .the Government will not hesitate to introduce legislation this year to defeat such combination.

ESTIMATES. I proceed to set forth the 1 estimated results on the 31st March next: Estimated revenue £8,200,000, estimated expenditure £7,987,347, excess of revenue over expenditure £212,653, add balance from last year £717,825 total £980,478, from this amount I propose to transfer £700,000 to tho public works fund, spt aside £30,000 for Civil Ser T ice superannuation fund, thou leave a oalance of-£200,478,fr0m which of couvar provision to bo made for tho usual supplementary estimate.

PUBLIC WORKS. Due provision must of course bo made for carrying on pur public works. The balance on Blsfi March last as already stated was £359,400. To this may be added £56,400, balance of the million loan authorised last session as already stated. I propose to aid the fund by transferring from the. Consolidated Fund £700,000 of the surplus of last year, thus making the total available ways and'means £1,115,800. This 'amount, however, is insufficient to meet of requirements and I therefore propose asking Parliament for a further loan of cue million which will bo floated in the colony. ITEMS FROM THE STATEMENT. The Sheep Tax will ba abolished.

The rate of interest on existing and future loans to local bodies will be reduced by i per cent from February 1, 1908, but not lower than 31 per cent. The regulations have been altered to allow each individual volunteer to earn his capitation irrespective of his comrades. When Australia has made her now arrangements as to naval matters it will be proposed to-iucrease our contribution to tho Navy to £IOO,OOO. Defects in the Arbitration Act will be remedied, and the half-holiday question in shops and factories settled. The poll tax on Chinese will not be increased, but an educational tost will be applied. Postal Department—Tbe charge for postage on inland post cards will be reduced from Id to Id ; registration fee, 3d to 2d; inland letters. Id for first 4oz, and Id for each 2oz thereafter; postage on magazines. Id per lb instead of Boa, A tender of £599,704 has. been accepted for tbe construction of the Arthur’s Pass tunnel, to connect East and W<?sti QoastS of South Island, The sum of £430,000 will be devoted for additions to opened linos.