South Canterbury Times. FRIDAY, JULY 4, 1890.

South Canterbury Times, Issue 6259, 4 July 1890, Page 2

South Canterbury Times. FRIDAY, JULY 4, 1890.

It is a source of surprise to many persons that the "laud fund” of the colony is insufficient to pay the expenses of tho laud department. Tbis|grear, for instance, there is a deficiency of £45,000 odd. People say “ Look at all the land sold every year, and what is more, look at the rent of tba runs, a big sum—what becomes )2 tbiu ? Surely the land offices and surveyors do not absorb all that I” Tbo fact is they do not, The “ land fund ” of the accounts now includes only two or three out of a score of income-producing items, and it seems nonsensical to call this account the “ land fund ” at all, it is so misleading. The “ land fund ” account for the past year shows receipts £87,692, from sales for cash and on deferred pay-

ments.; while the total receipts from the land were £287,431. The two items mentioned were separated some years ago for the purpose cf providing a separate fund for payment of rates on Crown lands, onr-third of proceeds of deferred payment lands to be given to local bodies for • reading, and for the cost of administration. The deficit above mentioned arises in tbe management of this special fund. Assuredly it is foolish to retain this special account, for outsiders, as well as many if not most Nev; Zealanders, who are not aware of the facta, suppose that when a deficiency is announced in the land fund, that the

whole of tbe land account is included. There is no sense in it any way, as the cost of administration and surveys, the principal item of expenditure, is incurred in respect of the whole of the landed estate. Tbe rest of the income from lands (besides the two item: named) goes into the general pot of the “ consolidated revenue," to pay interest on loans and the general expenses o' government. This conversion of the land fund to general purposes commenced with the abolition of the provinces, and was very soon completed. There is need of money to improve the administration of the lands and to hasten settlement, and seeing that the tendency of our finance is to throw ac much expenditure as possible on ordinary revenue, the time appears to be ripe for adopting a more! strict definition of the term “ ordinary I revenue, ” separating the whole of the |

revenue from tbs landed estate, and applying it first of all to the improvement of that estate,instead of pinching such improvement by spending the proceeds of the estate in other ways, and then saying there is no money to do anything

without borrowing in some shape or other. The total income from all sources would not bo altered, of course, but there would he no talk of borrowing for ordinary expenditure or payment o2 interest. Retrenchment of some kind would be found possible, in some direction or other.