THE FINANCIAL STATEMENT.

Saturday Advertiser, Volume III, Issue 124, 24 November 1877, Page 8

THE FINANCIAL STATEMENT.

(Otago Daily Times.)

Whatever other faults maybe found by the critics who will be sure to fasten on the Hon. Mr Larnach’s Financial Statement, it is exceedingly improbable that anyone will bring against him the charge of a want of frankness. We have suffered so much anguish in past years from the want of openness in Financial Statements, that were there no other point on which to insist in accents of praise this would furnish us with one. At last we know the best and the worst; at last the Colony knows what it owes and what its means of: payment really- are. Mr Larnach has acted the part of a judicious friend! in pointing:out to the Assembly whither the extravagance and mismanagement of the past six years have led us. There are no false balances and deceitful weights in his

declaration, and though to many.the remedyhe proposes ihay seem so severe - As to be almost-intolerable;: it is surely better to know the worst than to dream our time FaWay in a

fool’s paradise. .... We are hO admirers •of a policy of revenge; but this we hold to ibe poetical justice, : such as is not often meted out in political matters; We do not scruple to declare this statement the best we have seen for seven years. Its greatest beauty of all is that it requires no explanation; any child can understand it at once. When we owe money we have to pay it, this is -wliat it says.; and no shuffling of figures will enable us to evade an honourable obligation.; : f -• •* 1 - '•

( Evening Star.)

Mr Larnach accepts unreservedly the whole of the figures of his predecessor, and acknowledges the impossibility of even attempting to place more clearly before the House the details of the public indebtedness. This is a wonderful change from his speech on October 31, when he expressed a little disagreement: to the extent of £4,000,000, and implied a general distrust of the accuracy of the Statement. We will not, however, allude further to this phase of the subject; we may presume that party tactics may be sufficient to justify everything, and that the importance of retaining the Grey Cabinet in office; over-rides the ordinary considerations which regulate the conduct of —shall we say —politicians. Taking, then, Major Atkinson’s Statement as the basis of his own, Mr Larnach proceeds to adopt his Estimates, which, as .might have been anticipated, he finds cannot be materially altered ; but we are, of course, promised “ reorganisation and consolidation” during the recess. We fancy we have heard something of the kind upon

previous occasions. ... , . The “reduction in departmental expenditure,” which was to have been a feature in the policy, results in the cutting down of the salaries of Ministers to £I,OOO a year, and the old story of .“consolidating offices as much as possible!” The Ministerial salary business is so plainly ad captandum as to call for no remarks, and with regard to the ordinary expenditure the Treasurer might as well confess that lie is unable to cope with the difficulty. A loan of £4,000,000 is proposed, but it does not appear ;veiy distinctly why so large an amount is required for this year, and we certainly cannot understand ; how the £1,000,000 borrowed from the banks and included in the loan of 1876-77 requires to be again authorised to be raised. However, when the Loan Bill is brought down, full details of the requirements are to be given. Upon “ taxation ” the Statement is equally unsatisfactory and .vague. Sir George is evidently not so uncomfortable under the afflictions of the “working man” as he assumed to be early in the session, and we are only promised now that “ earnest consideration” will be given to the whole question during the recess. The policy of the Government may be summarised practically under three heads; —(1.) Increase of Colonial indebtedness ; (2.) Generalisation of the Land Fund; (3.) Promise of a universal Utopia. • '

(Evening News.)

The Statement has the merit of being explicit, and foreshadowing the future financial policy of the Government. The references to Treasury Bills and floating debts show plainly enough the extraordinary position into which, under the late Administration, the financial affairs of the Colony were rapidly drifting. It is proposed to convert the Land Fund into Colonial revenue, reserving about one-fifth of the proceeds for roads and bridges in the districts where the revenue is raised. It is also proposed to have a uniform land law, whereby the public estate will be sold at uniform prices, according to classification. There is to be a reduction in departmental expenditure, the salaries of Ministers, which vary from £1250 to £1750, being reduced to £IOOO, the amount paid up to the year 1873. Anew loan of £4,000,000 is intended to be raised, the amount being absolutely required to enable the Government to carry out the undertakings into which Parliament has entered. Reliance is placed in the revenue from'land as a means of obviating the necessity of increased taxation. The statement appears to have been carefully prepared with a view to disarm opposition on the part of the obstructionist element in the House, and Major Atkinson and his party must feel somewhat chagrined at being fought with their own weapons.