INCREASING THE REVENUE

Taranaki Daily News, 25 July 1930, Page 11

INCREASING THE REVENUE

PAYMENTS OTHER THAN TAXES. The following are the increases In revenue proposed by the. Minister of Finance, in addition to that raised by new Customs duties and taxes:— HIGHWAYS ACCOUNT. Discontinue the annual grant of £35,000 from the Consolidated Fund to the Highways Account. Recover from the Highways Revenue Fund interest, on the capital transfers from the Public Works Fund to the Main Highways Construction . Fund, Transfers to datq amount to £1,220,000, and interest at 5 per cent, on this amount will be recouped to the Consolidated Fund during this and future financial years. I may add that the loans from which the transfers were drawn cost on the average about £5 3s. 4d. per cent. No further • transfers to the Highways Account will be made, and in future the whole of the loan capital required for main highways construction will be raised specially for that purpose. “Transfer to the Highways Revenue Account as from April 1 last the Charge for subsidies to local x authorities on rates. These subsidies are at present paid out.of the Consolidated Fund under the provision of the Appropriation Act, 1916, and the Municipal Corporations Act, 1920. Subsidies paid last year amounted to approximately £220,000. These subsidies, which were first introduced nearly half a century ago,‘were intended . to assist backward counties and boroughs to improve the roajls of the country. The original intention was to pay the subsidies for a period limited to 25 years, but they have now become part and parcel of the normal finance of the local authorities. However, as the subsidies are given for roading purposes, and as the incidence for road construction and maintenance has been wholly altered by the advent of motor traction, it is quite appropriate that these siibsidies should be a charge against the taxes earmarked for roading purposes. “These financial adjustments will assist the Consolidated Fund to the extent of £316,000 for this financial year. Incidentally, meeting that additional amount of the roading costs out of the petrol tax will also assist in the direction of putting road competition • with the railways on a more equitable basis. It is proposed, said the -Minister; further to augment the revenue to the ex-., tent of £90,000 by bringing in the following amounts:— “Sixty thousand pounds from the Land Assurance Fund. This fund was established to meet possible claims for compensation arising out of the bringing of land titles under the Land Transfer Act, and but"of the working of the Act generally. The expenses of carrying into effect the provisions.of the Land Trans-, fer {Compulsory Registration of Titles) Act, 1924, have been paid out of the fund, which is also charged with any liability under the Mortgagees’ Indemnity {Workers’. Charges) Act, 1927. About half the work in connection with the compulsory ’ registration of titles has' now been completed. Claims for compensation have been very small, while experience has shown that the liability on account of mortgagees’ indemnity is practically negligible. Under these circumstances it is proposed to close the fund and transfer the £85,000 at present standing to its credit to the Consolidated Fund. Of the amount £60,000 will go to revenue and the remaining £25,000 will be held in suspense to meet any claims that may be made. “Thirty thousand pounds balance of interest on reparation moneys at present held in a special reserve by the Public Trustee. During the war the Public Trustee was entrusted with the duty of liquidating ex-enemy property held in New Zealand, the proceeds from which, after the Treaty of Versailles, became reparation moneys. Interest to the amount of £50,000 earned on such balances since the Treaty has previously been received, but owing to technical legal difficulties, legislation will be necessary before interest-accruing prior to th® Treaty can be made available. All interest on ex-enemy moneys, however, should be applied, in relief of taxation, which is carrying the burden of the war pensions and war debt, etc. I may add that the capital moneys, with the'exception of about £60,000 held by jth® Public Trustee against contingent liabilities, have already been applied in repayment of war debt. “To sum up, it is proposed that the Budget shortage of £3,095,000 shall be partly met by reductions in and adjustments, as follows:— Subsidies to local authorities on rates transferred to Highways Account 220,005 Interest on loan capital transferred to Highways Account 61,000 Additional superannuation subsidies not being budgeted for 175,000 Decrease in hospital subsidies 30,000 Decrease in subsidies on voluntary contributions 40,000 Subsidies to railways (non-re-curring) 180,000 Elimination of transfer to Dis- • : charged Soldier Settlement Account Depreciation Fund . 50,000 Reduction in annual votes .'.. 388,000 Railways—reduction in expenditure and increase in revenue 450,000 Transfer from Land Assurance ' ... Fund Co,oo(Mgi Balance of interest on reparaf tion moneys 30,000 Total estimated savings on last year’s expenditure ~ £1,684,000 Allowing, say, £250,000 for supplementary estimates and contingencies, there remains approximately £1,660,000 to be provided out of additional taxation.”