HOUSE OF REPRESENTATIVES.

Timaru Herald, Volume LII, Issue 5170, 17 June 1891, Page 2

HOUSE OF REPRESENTATIVES.

8 The Houbo mot nt 2.30 p.m. , THE i>niVATB SOHOOt BILH. 1 Replying to Mr Kisher Mr Heev6B said that tbo Government did not intend to introduce thiß BOBeion tho Bill known a> Pyfco'e Privats School Bill or any similar measure. B THE XBADKB OF THE OPPOSITION. Mr Ballanoo congratulated Mr Bryce upon

his having been elected icador of t'.ie Oppi siti'm. Mr Bryco thanked tho Premier for hi* cot gratulations and said that o.b far as hia infli once Trent it would be for the good goverr ment of tha country, and he did not think tli Bous? would witness any obstruction froi the Opposition for obstruction's sak*. SHE BIiEOTOKAIj TilLli Mr Bailance moved tho second reading c the Electoral Bill, which provided that th one man ono vote principle should apply t bye-elections as well as general elections, an that no elector should register on mor than ono electoral roll. Provision wa also made m the Bill for purging tbo roll, b which, after every general election, thos ■who did not vote should be struck off th roll. Writa would bo issued within fourteo days after tho dissolution of Parliament, am v public hoiidey was to bo declared on th day o£ election. Under tho Bill w&gorin at elections would bo a corrupt practio pyniabablo by lawSir John Hall dopveeated nny extension o the ouo man one voto sjatem, and would vot against the proposal. He regretted that th Bill did not provido for female franchise, o or for tho representation of minorities Another great reform might also be intro ducod m Iho Bill, namely, that publio house should be cloead on polling day. Mr O'Oonno? and Mr GuinncES congratu lated the Government on the Bill. Mr Dutbie could not agree to theproposa to declare a public holiday on election day. The dobate was interrupted by the 531 p.m. adjournment. The House resumed at 7 30 p.m. COMMITTBB OP STJPPtY, Mr Perceval was votfd to the chair ii Committee of Supply for that evening. THE FINANCIAL STATEMENT. (Iv Corrmittee of Supply, 16th June, 1891) by tbe Colonial Treasurer, tho Hon. M 1 Ballance : — Mr Percovsl : In aaking the attention of th( Committee while I place before it a plain un varnished statement of the finances of th< colony, I hope to bo as brief as the nature ol the.'subject will permit, and not to wenrv Honourable Members by unnecessary detail. Consolidated Fund Expbnditubb for tiie Yeah 1390-91. (Okdinabx Ketenub.) The estimated expenditure for tho yiai 1890 91, including the Civil Liat and olhei psrmanent charges, amounts to £4,125,592, The actual eipendituro was £4,175,108. There were savings m some classes of expenditure and excesses m others, but tho not rssult chows an excess of expenditure ovei the estimate of £49.606. Detii!s \rill be found io. tho annual appropriation account and m tho tables attached to this statement. It is unnecessary for me tc analyse and explain m detail these savings and excesses, but the Committee will expect me to at least indicate the larger items comprised m tho excess, and to briefly explain their causes. Under special Acts there is on excess of £19,149, arising out of the cost of two meetings of the General Assembly, and the extra amount of compensation paid m carrying out tho retrenchment proposals of the preasnt Government. There wa3 also an excea3 of £14 659 m the amount paid to local bodies by way of subsidy on rates, tho explanation m this case being (hat claims were more promplly ssnt m before the closa of tho year than waa anticipated. In the Colonial Troa3urer's Department there is an excess of £11,167 chiefly for discount on drafts, which was not provided for m lh«s appropriation of tha year. This large item was go doubt partly caused by tho high average rate of interest ruling m London. In the •working railways the excess of £27,892 is explained by the Commissioners m a memorandum m attached to their estimates, and which they state arose from tho necessity of employing additional hands, from ths rise m tho coat of fuel and Btocks at tha time of the recent strike, and by increased traißa. Under the head of Minister of Defenco tho expenditure exceeded the votes by £14,712. The Committee will remember that £7,100 was taken off theio votes m supply, but a saving was effected of the exce33. £3000 Wi3 incurred through tho labour troubles of last year, Tho other increases principally arise from the payment for arms and ammunition not sufficiently provided for m tho voto3. " Services not provided for" amounted to £10,410. A large amount of Ibis represents compensation and compassionate allowance granted to officers and wiiiowa of men of tho Derence and Police Department, which could not bo paid under the provisions of the Civil -Service Act. BETBNtTB 808 THE Tsiß 1890-91 (OrDlNabt Beybstje Account). The lato Government estimated the revenue to bs received at £4,159.000, which included £55,000 for primage duty for the whole year. It will, however, be m tho recollection of the Committeo that if. was determine'! to discontinue the collection of primate duly at tho end of last September. The roviaod revor.uo to be received ws3 to bo accordingly £4,1 13,150 instead of £1,159,000 a3 bc-foto stated. The actual amount received waa £1,282,504 or £151,004 m excess of the revised estimate. With the exception of revenue derived from the depasturing licenses and renta, all the heads of revenue have been exceeded. Full particulars will be found m tho tables attached. kxpbhdittj2e asd bbvenr/e of the i;aitd Fttsd Account. The estimated expenditure was £115,659. The actual figures are £116,1C8, or £428 m excess of the estimate. Tho estimated revenue was £96,601, while the actual receipts cance to £104,270, or £67,679 m excels of the eatim»te. Large quantities of land m Cantorbury district wore sold for cosh, but the lands available for disposal m this way havo been nearly exhausted, and even were o policy of whoksalo disposal for cash justifiable, it would b 9 impossible to obtain Iho same amount of revenue from this district again. As an illustration of what I mean, tbe value of land sold for caßh m Canterbury last year waß £65,929, while tho estimate for this year is only £4000. The largo access of cash receipts during tho year provHod a balance sufficient to pay off the deficit of £45 716 at thecoTimencement of tha yeir, and to leave a surplu-i of £2415 at the cloaa of the year. BEatTLTS OF THE YEAB 1890-91. At the beginning of the year a surplus was shown of £36,568 193 4-J after paying off Ihe balance of the deficit at tho 31st March, 1889, £78,605 Oa 8d (as I before stated). Eeceipta amounted to £4,282,504 9a 7d, making a total of £4,319,073 8i 4d availablo for expentiture during the yow. The total expenditure amounted to £4,175,107 13s 5:1, thu3 leaving a surplus of £143 965 153 6d on tho 31st Maroh last, a result which must ba very gratifying to the Committee. The Public Debt. The grojs public d»bt on tho 3lat March, 1890, was £38,667,959, and tho Sinking Funds accrued amounted to £1,386,184, os revised aftor receipt of the English account?. Tho net publia debt waa thorefova £37,281,76i0u tho Slat Maroh last, showing an inereaso of £164,400 during last yoar. The Sinking funds accrued aro estimated at £1,473,193, and tbe net debt therefore stands at -£37.359,157. During tho year tho following transac'ions have taken placo, irrespective of tho conversion opernlions, to which I ahall presently rofor. Dobanture* for £1411,030 of tho Consolidated Btock Act, 1884, were reduced out of Sinking Fund of tho consolidated loan of 1837 sot free, and £47,000 of debentures of tho Ift3t-namcd loan were drawn m 1890. and wore i-o-----deemed out of tho sinking funds of the eamo loan. £7,000 of debentures issued under the New Zealand Status Forenla Act, 1885, h»ve been paid off out of revenue accrued, leaving only £!00of these debentures outstanding. On thn other hand debenture* were issued for £280,000 under the Oonsoli dated Stock Act, 1884, representing th< estimated equivalent of the incra.ioo of tb( Sinking Fund for tho year. Thero has nl«c been an additional issue of £75,000 under th( Government Loans to Local Bodies Aot, 1888. It will bo noticed thai I h»ve made no mention of lhi!£ls4BoC debsntures under the Now Zealand Loan Act, 18G3, which bocama due on tho 15th March Int. I havo left tho amount m th< publio debt tablo becane" h complete account of the operations connected with tho conversion, including the3o debsnturcs, h:is not y«l been received from tho Btook ngents. If thej were struck off their equivalent m 3fc pei cent, stooks would requira to bo shown therefore bb full information Ims not yo rouciicd mo, I have judged it best to let Ihi plil debentures remain, but of course th<

o- 1 Committee ■will umlot'.Uvd tinit it.! /.!> unronverl'.ed portion of t.>,e I-*-! tin.' on. Mi i- 15t,h March was duly provided frat tli i- time. Honourable members smII hay i- noticed that largo parcels of debentures ar io falling due during tho current yeai n Those of the loans ot 1860 am 1863 are m. -hided iv the conversioi operations, and will be duly provided for b; if the conversion of such debentures as aro onn i 0 m and by tho creation of 3J per cent stock t< 0 pay off the balance. As to the debenture d issued under the Public Revenues Act, 1886 c amounting to £150,000, falling due on thi 1 10 th October uext, tho Govemmont proposi y to ask Parliament to amend tho schedule t< o the Consolidated Stock Act, 1884, so as t< o include these dobentures m its provisions. Ai n regards tho short-dated debentures isauoc a under that Act, duo on the 18ih Kovombei o next, amounting to £1,314,084, tho sum oi a £156,600 has sinco tho close of tho finaocia o jear been written off the debt by tho application of sinking funds set freo at the kal f drawing of consols m London. The balance o unrericomed will bo ronowod for a brioE torm 0 within tbo provisions of the Act. r The Pbesbnt CoirrßnsiON Opebatiohs. Papers will bo laid before honourable members, showing what has been done and 8 what is contemplated with rospoct to tho conversion of tbo remaining portion of our high iutereet bearing ionns, amounting to £868,900. , Debentures surrendered for tho conversion oi the loan. of 1863, duo on tbe 1 5th March last, had to bo deposited nt the Bank of England not htor than the 14lh Maroh, and all othot debentures on or before the 15th June next. Iho Government have roaorved the right to convert into 3£ p3r cent 3 insciibad stock (with tho assent of holdorB), and debentures not brought m for conversion on terms to bo notified from time fo'timo at tha Bank of England. Iho Stock Agents p havo beon ablo to make exceedingly satisfactory arrangements with tho Bank of BngB land, whereby the success of t'>o conversion \ will be essure-t, and 1 neon scarcely point out 3 tho ssviog which will be effected. I take this f opportunity of recoguisiog the eminent r services of the Btook Agents, particularly m the difficult negotiations respecting tbia conversion bu»iness, for wbinh I think they ' deaervo the thanks of the colony. lam in--1 debted to the Assistant Controller and Auditor : for an interesting and exceodirgly valuable ■ statement of our conversion operations sinco ■ the pa6sing of the New Znaland Oonsohd&ted 1 Aot, 1877, whioh;l appond to ihisstatomsnt. ; Public Wobkb Fukii. '. Pnrt I.— Tho balance at credit of this [ account on tho 31st March, 181)0, including [ an asset of £87,974 Is 31 under the ! Government Loans to Local Bodies Act, 1886, , was £233,675 lls 10J. During the year it , became necessary to issue £25,000 of debon- . tures on account of the asset above mentioned. ' Some miscellaneous recoveries were also ! received, amounting to £5781 4s Bd. The , expenditure during tho year amounted to £128,810 18s 9d, thus leaving at tho close of the year an available balance of £110,615 17s 9d. The outstanding liabilities are returned at £96,608 3s lOd. Part 2.— (North laland Main Trunk Kailway Loan.) The balance to commoDco the year wrs £386,085 9?. The exvnditure during the year amounted to £30,878 9.«, Ihns leaving an unexpended balance of £360,107, subject to £44.992 19s for outstanding liabilities. The allocations of thi6 balance are as follows : — For railway purpof-es, £232,424; for roads to giva access to railway, £34,652 ; purchase of native land, £83,831. Tho liabilities against tha railway amount to £26,103, and against roads to £18,799. Part 3 — At tho beginning of t)s9 year tho balance was £426,805 15s 4;1. Daring the year the expenditure amounted to £175,462 7s 6d. Ihs balance at tha close of the y> ar was ££51,313 7s lOd, and tb« outsUndine HibiHtieß £93,875 19a 3d. T tt kir,g the three parts together the available balacco at the beginning of the year was £1,047,466 165 2d, which was increased to £1,053,248 09 lOd by some small receipts. The expenditure during the year amounted to £335,751 15s 3i, and tho availablo balance ut t!io close of the year to £718,093 5s 7d. The outstanding liabilities on Iho 31st March last are stated at £240,387 23 Id. The following nre the particulars of th; unexpended balance. Cash m tho Public Account, £72,011 10j 9d ; cash on fixed deposit m London, £30,000 9i • m the hands of officers of the Government, £33,590 13s 7d. (Temporary investments) guarau'evd debentures of the loan of 1879 £246,000 j Weatport Harbour Board debentures. £127,000 ; Greymouth Harbour Board debentures, £s|ooo ; Government Loans to Locii Bodies Act dobentures £75,000 ; 3J pev cent inscribed stock, £65,620 j total, temporary investments £655,122 4s 4*l; available under section 31 of the Government Loans to Local Bodies Act, 1886, £62,974 Is 3d ; total, £718,096 5s 7d. I may inform the Oommiltet) that tho availablo cash ol the Public Works Fund has during tbe pact financial yoar been usod to purchase further debsctuies issued by the Westport Harbour Buard, to tha amount of £71,000. This Board has Parliamentary powers to issne debentures to the amount of £500,000, and has availed itself of the law to tho extent of £150,000 raised m London, and guaranteed by tho colony, and £171,000 raised m New Zealand. The revenue derived by the Board, after paying working expenses and providing for interest and sinkiDg fund on the borrowed money, yields a fair margin which is expended on improvements. It is th» opinion of the Government that the works for which the money i» being found are of a substantial and valuable character, ani no long as tho Government consider that the expenditure is beiDg providently conducted and the limit allowed by law is not exceeded, they deom it their duty to aßsijfc as far as poxible by providing temporary advances, pending the sale of the debentures m tbo open market. With referonce to Groymouth Harbour Board, I may remark that when tho preaant Govornment took office they found unauthorised expendituro amounting io £11,953 for advanoca made to thia Board. Tho Board, having exceaded the Hraile of. its borrowing powers amounting to £150,010 under thoGreymoutb Harbour Board Act, 1874, has represented to the Government from time to timo its urgent neeo»Bily to carry on its work of considerable importance for tho improvement of the harbour. Tho proposed works having been favourably reported on by our engineers, tho Government have continued (o advance tho necessary funds, retaining tho Hoard's rovenucß derived from tbs mineral Irnffic and land endowment m reduction of the sums advanced. 'J lie net amount now outstanding against the Groymouth Harbour Board i) £10,354. As it will be absolutely necessary ta carry on tbo works already begun to a sue cosuful complotion, further borrowing powore will roquiro to bo obtained by the bourd. A bill for tho purposo will to introduced to raise an additional aum for tho prosecution j of nccotsary and urgent improvements m tin harbour. Under Section U of tho Consolidated loan Act, 183*, it is enacted that o'ter tho redeeming of such debentures as may liavo been issued on account ot increased of (Sinking fund of U>e loan iv roJpoot oi w!ii<"li Ihn sinking fuud Ins beon col free, Uio balance of ailch sinking fund shall ho paid in'o t'so public account, and shall form purt of tlin'jl/iiblie Works fund. Until tho lnan» of 1860 and 1863, falling duo this year, Imvo bi'cn fully converted or paid off (<ho lost, parcel of tho loan of 1803 is not due until tho ISlli Dcneinbsr noxt), it is impossible to estimate with any certainty tho amount of sinking ' fund accretions which will bo paynblo 1 into tho Public Works Fund. I may, how- , evor, stato that !he loans having sinking funds i which maturo during tha your, amount to i £491,100, and that debentures amounting to i £i 78,925 issued m respect of tho accretion of . tho linking funds of thcao louns, are now out- ■ standing. It is fuir to uasnrno that Iho acou- ) niulated sinking funda at least equal m > amount the louns for which they worocr;-ate3. > I may therofora safclv oaloulnta upon rcci-iv- ' ing more than £30.000 into the Publ o fc Work Fund without taking into con- ) oiflcration the profit derived from tho i iialo iibovo part of the sinking fund sreuri Hies, which havo beon nrninly invested 3 m our 4 per cont inscribed stock. I prot pO3!) ln.l o • on to show liow £100,000 of ■ t'lis amount, may bo specially wjiplicd to diat chargo our obligation, thus leaving n bnl;in<.'o r of £200,000 tbia year avaihblo for publio ■ v/ork?, tho appropriation of which will bo , fully explained by my colleague m hifl I, statement. )t will show Mint wo Invo o not oslimattd for rocoiving a lurger amount 9 J of released Sinking Fund from (be coavoreion

-! operations than will b 8 actually available ii ,■ iho present year, but if the operations extern c to ]o:<na falling duo m f uturo years, the sun c rceaivnblo will be proportionately iiioronßcd o Of courso, m stating theße figures, Honour r able Members will understand that tho eond version ecliemo embraces the substitution ol 11 8J- per oent insoribod etook for tho uncon< y verted portions of tha loans aa they fall due. t whereby the whole of the accumulations ol o Sinking Fund are set free, and become avail s able under the provisions of the Consolidated i, Stook Aot, 1884. 0 GOVBKSMENT LOANS TO lOOAL BoDIHS. 0 Thoro >„v been £300,000 borrowed up to 0 the 31sfc March last, for tho purpose of 3 making loana under the Government Loans ? to Local Bodies Act, 1886, and £25,000 for (ho purpose of transfer to tho Public Works P Fund, m part realisation of the assets o( \ £87,974 lo 3d of tho fund, payable under seotion 31 of Ilia Aot, m respeofc of '. converted debentures originally issued under the "Roads oud Bridges Oonatruotion Act, 3 1832. Up to the 31st March, 1890, £243.200 1 had beon paid over to local bodies, and during the past year £47,164 had been further advanced, malting a total of £295,3G4 paid over j to the 31st Mnroh last year, leaving a balance lof £4636 available. r Xhe engagements of the . Treasury m respect of these loans amounted , on tho 31st Maroh laßt to £41,018, and further applications bad been receivod for E £36,588, which had been granted provisionally at the Ist February, 1891. The amount of j debt standing inscribed m tho Treasury . register, including the equivalent of tho converted debentures of the Roads and Bridges j Construction Act, 1882, was £380,463. Betweon the fiist February and the 31st Maroh last further payments to tho amountof £10,235 J hava been made. These with interest thereon ; .will be added lo the registered debt of Febru- | ary next. Tho Act provides (section 4) that an annual appropriation for a sinking fund shall be rondo; but nothing has beon done up i to the present m this direction, I have, ; however, determined thnt 1 per cent, per i annum, includiog arrears from the Ist February, 1888, shall be set aside for the purpoee of providing a sinking fund fca comply with the terms of the Act, and I tmvo accordingly placed upon tho estimates a sum sufficient to cover arrears, and for the current year. Consolidated Fcsd. Ordinary revenue account. — for 1891-92. For the ytar ending 31st March, 1893, I have had very careful estimates pvopsrod, and they will presently bo laid before jou. Tho expenditure as proposed will be found to amount to £4,165,105. Under tho hoad of interest and sinking fund there is an increase of £34,687, mainly arising from an abatement last yenr of £15,750 from the amount payable on the 3J per cent, inscribed stock on account of relnpso of int.rost on the 10-40 debentures paid off. A new item of £8856 lias been provided for sinking fund at 1 per cent on the amount borrowed under tho Government Loans to Local Bodies Act, 3886, m order to carry out tho provisions of tho Act. The appropriations are increased also under the head, Special Acts. For the first lime wo havo had to provide a sum of £21,000 for p&jmont of our contribution towards the maintenaoea of tho Australian JTavnl Squadron. An inoreascd aum of £3,000 provided for compensation under tho Civil ■"oryice Act, while £800 has also been added fur payment of subsidies based upon actual payments made last year. Coming lo annual appropriation it will be found that, excluding working railways, very substantial reductions have been effected m the ordinary departinonial expenditure. Provision, howover, has had to ba made for exceptional services, such as Iho census £12,500, for tho triennial property tax assessment £12,000 and for discount on our remittances to London £3500, tho act. of provision for which last year caused the Treasury vote to bo overdrawn. Notwithstanding this extraordinary rote, the estimate of expenditure for. 1891-92 is £45,303 lesa than tho expenditure of 1890-91. It is necessary to refer specially to tho small amount estimated for tho coot of remitting money to London, £3500, compared with tho amount spent last jear m the same item, ] namely £12,435 I have entered into arrangements with tho Bank, under which a bill nt 90 days instead of 120 will be issued at par on London, Tho effect of this arrangement, if it hod been m operation on our finance last year, would havo been n saving, the Treasury has calculated, of upwards of £4000, and if other things oro equ»!, of conrso thero will bo a similar saving this year. KXPBNDITCRE AND BeTENOB Or LaKD Fund Accotjkx. The estimated expenditure for tho current year amounts to £116,956, whereas last year provision was made fur £115,080. Although tho presont estimated expenditure slightly exceeds the amount voted last year (arising out of tho necesoity for employing additional surveyors, and the charging of salaries thereof which were paid out of loan), very considerable saving has been offected by the amalgamation of the separate Departments of Orown Lands and Surveys. I have not thought it prudent to estimate the revenue for the current year at more than £92,700. Last year it was estimated at £96,600. The excess of expenditure over revenue for tho current year according to the above figures rsßults m a deficit of £24,265, rpduoed to £23,820 by the surplua of £2415 at tho beginning of the year. This deficit I shall deal with further on, Oehinabt Rbvent/b of the Yeas, 1891-2. After careful consideration, 1 estimate that our ordtnnry rovenuo receipts will amount to £3 986,500, or £804 less than the actual receipts lust year. In addition to the above there will bo fctued m nid of revenue £282,300 for Sinking Fund inoroase, as ogaioet £288,000 issued during last year. Adding these together, our total receipts aro estimated to fall short of last year's actual reeoipls by the sum of £13,704. Tho revonue derived from " Stomps " is sot down at £21,191 lets than inst year's reoeipts. Of this amount £15,700, which has heretofore baon oroditod as revenue, will now 1 bo treated as recovery m reduotion of expenditure m connection with tho 3an» Francisco and Direct Mail «nrvico». Owing to the light grain crops I hove not decmod it prudont to estimato more than. £1,014,000 of railway revenue which is £9322 less than was recsived hst Tear. Some exceptional amounts swelled tho miscellaneous receipts of the past year, and as I do not oxpoot tboir rocurrence I havo Bet down this item at £43,000 inslond of £49,C00. On the other hand I see no reason why there should not be an increase undsr tho beads of Ouatoma and Beer Duty. I havo therefore made a slight addition ovor last yo/sr's receipts to both these items. I expcot that tho general oeeoptanao of our land settlement propomls will cause an augmentation of £22,918 ovor tho receipts of last year dorivod from depasturing jieensos rents, etc, usually designated our " Territorial Revonuo." FSTI.VATBD EliSt/MS op THE YnAU 1891-02. Aa I havo before ntatoi, a surplus was brought forwnid of £143,985 ,!5s (5d to commence tho prfiserii.Toar, to whiob I add tho estimated revenue for tho yea? amounting to £1,268 800, togolhcr £4.412 865 15b 6d , ■Trom this I deduct tho anticipated expenili. turc^f £1.156,105 leaving|iourplue of £257,660 109 Gd ht the ond of tho presont fluwiciKl year. Financial iniiAWGEMENTa. The question will now aujjgest itself to the I'ommHteo m what, pan, this surplus bo disposed of* It most havo been rooogniecd that tho lendenoy of tho ago io to increase tho postal facilities of tho world, and to reduce tho post of -'carrying.lo iters, etc. Th,e lime is not far, distant, we believe, when there will bo an Imperial penny postage, prohab'y within the next fhfen years. Tha loss eatimarol by tho Rnfclish authorities is not expected to exceod £75,000 'ft' year. Of ibis amount a number of ipe'rspns m England hare offered ,lo giiarantos £50,000. a year, and punlio opinion is rapidly growing m tho direction 'of ' adopting a hiinimurn. rntfi 'of postage os a niejuin ofV, consolidating or federating the various parjo of the Empire. Tho postngo at present. with Australia is 2<\ a lctlor, tt'nd that to Groat Britain 2£d, while to tho suburbs of our cities and other parts of thn colony the chwgv is 2/1/ Pp. manifest on anomaly auggosts a chango m 1 116 direction of our proposals. Tho.tiina. hao arrivod, Iho Government belinvo, whon n .penny post should bo established m JN'nw Zealand;' 'J'he cost of iho reductions m; tb<v present ydaf' m ontimated at not moro than £40,p00, and from careful calculation! and. comparisons with the

n \ colony of Victoria, whoro the penny post ii i I already an rtccompliched fact, it h eelimntoe n tha'c within throe years from the present lime : through an inoreose m tho number of letter! - sent, tho loss m tho rovenuo will bo more than - covered. It ia also intended to ask for powei f tojestubli&h (he penny post with the Australian • colonise, and negotiations to this end are now , being conducted by my colleague, tho Postf mnster-GonoriU. If thin extension of the - penny posl bo adopted, tho immedi--1 ato loss to the colony m revenue will bo about £1800 a year. The Committee will agree that this is not a formid&ble sum to Boouro oo great an advais- | tuge as an intercolonial penny post. Postage ' on newspapers to other oolonios is now a penny. It is proposed that it shall m future r bo one hall penny, and it is anticipated that 1 tho increased number posted will prevent any matotial lobs of rovenuo. It ia also proposod 1 to reduce tho tolophons charge to a uniform [ rato of £5 a year, which, we believe, will not : entail any material loss to the revenue, as the j incroase m the number of connections m consequence will probably bo large The ■ details of theee and other reforms m tho Post and Telegraph Offiaes will bo explained by the Postina«t*r-Gonoral. ' The question of sottling the land and carryJ ing on the work of colonisation, m maiing roads to open up land for oettlemcnt, wiii ; havo, wo think, to bo borno m futurs to some extent by Iho Consolidated . Fund. Whether this can bo done will depend on tho progress of the oolony m tho way of yielding an increasing rovenue, but it will be recognised that tho connection 1 is intimate botween a growing rovenuo and tho extension of settlement. Wo propose, therefore, m tho prosont year to apply the 1 sum of £30,000 out of roveuuo for the work of opening up land for settlement. This amount will probably havo to bo supported 1 by a vote from the Public Works Fund. We propose to remit the native linds duty on lessfs, amounting on tha average to about £6000 a jcar. There appears to tho Government to bo no justification for imposing an 1 exeoptional duty on the alienation of native land for eettloment, a work which ought to ba encouraged rather than restricted by tho imposition of a duty which is irritating and at tho same time .difiioult to collect. I havo not disturbed the distinction which hao bton made botween Territorial .Revenue and tho Land Fund, though I can hardly sco any reason for ite continuance. It is truo the Land Fund m the past has been subjocfc to Btrange and serious perturbations, throwing out oil the calculations of the Department but thu elements of uncertainty havo m recent years bosn reduced to moderate dimensions, and the Consolidated Fuud, to which both descriptions of revenue legally belong must soon receive back its erratio and wandering child. The Land Department has mixdo a calculation of the turn it will coßt m surveys and administration to obtain tho territorial rovenuo m tho present year, and tho estimate is £40,000. In tho past tho Land Fund had improperly borne the corresponding charge, and this has tended very often to produce a deficit m the fund. There is an estimated deficit m the present year m tho Land Funri through tha prob\ble decline m cash salos of £81,820, which i propoßo to meet by tranrferring a similar ainonni from the ordinary revenue account, which will come out of tho estimated surplus. Tho simple and diroct plan of dealing with the mattor it to amalgamate tho ordinary rovenuo and land fund amounts instead of maintaining the distinction which has beon made for many years nnd this would have beon done m the pro3ont year but lhati desired to precer^o tha usual comparisons. The Committee may remember that my predecessor made a proposal m 1887 to pay out of Sinking Fund accretions under the Consolidated Stook Act., 1881, tho amount of £40,000 a yaar, the deficit of tho year 1888 amounting to £40,000. It was also proposed that any credit balanco of ordinary revenue from year to year shall bo devoted to tho same purpoaa instoad of being carried forward to the next account. Short datod dobonturos were issued to cover tho deficit. Tho debt still remains, the arrangements to extinguish it not having beon put m force- We now propose to apply £100,000 of the surplus of tho year to the rodnction of this debt. We propoto to place a tax of 2i per cent on the monoy passing through the totolisatoi*, which will r.mouut to about £10,000 a tear, and for l.hn remainder of tho present vcar to about £5000. Summary of these various proposals. — I shall now bring together, to show tho financial result tho cost of peony po9tn(»ea £40.000 (I do not inclado tho intercolonial postage as the negotiations oro not completed). £30,000 for opening up land for settlement, £fiooo duty on native leases, £21,870 to meet the estimated deficit m the Land Fund, and an appropriation of fiICO.OOO to pay off tho debt incurred m 1888 to meet the doflcit of that y^ar. The total of thoso various amounts is £197,820 Deducting this from tho estimated surplus of £357,660, wo havo o not surplus available to carry forward of £59,840. To this has to bo added tho tax on the totah'sators amounting to £5000, bringing up ths surplus for tho current year to .£64,840, which will bo an amplo margin to provide for the Supplementary Estimates and poesiblo contingencies. Bbtbhtje HBBor/8083. A table attached to this Statement shows the revenue por head of population derived from soma of tho main items of the tariff and points to the fact that it will bo impossible to depend m tho futuro on tho increased consumption of alcoholic liquors to strengthen the Consolidated Fund, 'i'hia fact is gratifying from a tomperanco point, of viow, and I only point it out tv order that wo may guard against an unduo reliance on what ia termed the ela»t,ieity of tho Cußloma revouuo. A time of great prospority, high wages, and oonotant employment for tho lnbour classes will bring, no doubt, on enlarged consumption of luxuries, and tho wholo Customs rovenuo under such circumstances will continue to inoreaso, but not rapidly nor to a groat extent, raors oepoeinlly as tho colony will continue to manufn.cturft mow and more of those articles which foil within tho limits of protection under tho tariff, Stnmpo, as greator woaKh is diffused among the community, continue to give a' t early increase, und must bo coniidorod nsone of the pillars of our financial »y»tem. Jho railways can never, I thlnlt, be relied on for rovonuo purposes. If thov pay iptcrest o»i th» coi>t of construction Ihoy will do all th.vt nred bo expect orl, an any excess ought to go m tho way of reducing tho cost of production m lower rates of carriage. Diroct taxation m tho way of a land and income lax must remain with tho development of our Industrie" a fruitful source of inomo and an equivalent of the atnouut obtained from tho present proporty tax may for 6omo timo ba a rieeemtv. Whon tho nature of our obligations will permit it, wo aro of opinion that relief should bo given on tho necessaries -of lifo, now paying duties through Iho Customs, but vfo must bo certain, whiln tho groat object is being ronchod, that wo shall havo sufficient rovenuo to ineel the growing demands ou tho Consolidated Fund, arising through tho cessation of borrowing largo amounts of monoy m Iho Knglish market. For if we are to maintain our credit and finaneinl indopendenco, borrowing m tint rjwkofc must ooft»i > , whilo any loonl borrowing 'is likely to bs confined to tho absolute nocosßily of carrying on tho esaentinl works of colonisation, euoh ns sottlemont of tbo peoplo on tho land, on whioh doponda so dirootly tho pronporUy of the community. On tho oilier bond, if tlio machinery of Government could bo simplified, and jiiclieloua rotrenohment carried ts its proper limit, the oxpanHilurofiido °f tho account might »till bn considerably roducoi ; but we ore strongly of opinion thttt any inatorial reduction must como from ft direct and simplo form of administration, directed to tho attainment of practical endo, and it will bo nooesaary to soo that our measuros of legislation do not include liabilites whioh will rondor this form of economy an impossibility. Thh Floating Debt. The amount of tho floating debt incurred to moet past deficits is £650,000. Thie will be rednood to £450,000 by tho appropriation of £100,000 out of.lho surplus of tho year, ns nlreaily explainod. Can this floating dobt bo furlhor reduood ? Tho Government think that though by law tho raloasad Sinking Funds m connection with loans undergoing conversion, pass into tho Public Works, Fund, i»- portion of them tliould bo used I to pay ft dobli whioh waa incurred to aid revenue and I proposa to trans for from tho Publio Works Acoount

9 j £100,000 of sinking fund sot frco, thus m tl: 1 i present year reducing the floating debt by tl i, sum of £200,000, and leaving ouietandin s ! £850,000 to be dealt with m the future ai j oording to tho stuto of our finance. I hai r also to add £128,605, paid off mainly by th j primage duly, to the £200,000 now propose r to ba extinguished, and wa shall then hv? . effiaoted a reduction m this species of del: a amounting to £328,605. The aid to revenu . m deb«nturos issued 6gainst tho Binkin j Fund increases, belongs to » different cat! > )gory from what I have been explaininj i [About £W9,000 will bo available throug . the conversion operations to redeem d( ) bentures m the proaent year m addition I i the linking fund released from the drawin i of tho loan of 1867 amounting to £146,60 C ; The naturo of the complicated and ingeniou ■ operations under the Consolidated Stook Aol I 1884 is such that while we are issuing dt bentures m aid of revenue i n anticipation c ; the sinking fund falling m, we are at the sam i time paying off debontures already issuec In the present year we issue £282,300, an i shall pay off about £385,500. [ THB CITIIi BEBVICB. The Government recogniso that vigorou measures ar« required to place tho Civ; Service of the oolony on a satisfactory f ootinf They have discovered that the derartment bare bceu overmanned, and do their wor imporfectly, and they havo had to apply th pruning knife of retrenchment. The opera tion is always to be regrottod, for very oftei hgrdships result. Tho task of reducing fch Sorvico at the risk of depriving families o thoir means of subsisting is one from whicl most men shrink, but it had to bo done. Th justification is that tho welfare of the whol community demands the moat rigid econom; m tho administration of affairs, It is a fao that the Civil Servico has been dioorganitei and quite powerless to do anything lo hoi] itself. To be economically administered th Service must be under an administrativ body, and, at least m Iho lower grade the officers must be interchangeable ii tho different Departments. Ketrenohmon to be effeotivo must go on continually. Thui fhon sn officer dies or retires the quostioi should always bo naked haa an opportunit; occurred for promoting greater pconomy am efficiency ? Every promotion should men both, for truo fconorry docs nob gain bi cheeseparing m salaries but by getting thi right irmn m tho right place. Is it poeaibli to havo a Civil Sorvico m which tho oountr; shall have confidence? Tho Government bo liove that tho Civil Servico Bill, which wil shortly bo introduced, hao m it such element of sound reform as will enablo this quostioi to bo answered m tho nfiirmntiro. It ask the heads of the Service to accept tho respon sibiiity of advising tho Ministry and it iufusei tho principle of unity by placing the Berric( under the oharjo directly of a porticula Minister, vrhoto special duty it will be t< promote its truo inlorestg, which cannot bi considered apart from interests of Ihe coun'ry We believe that great reductions can ba modi m tho cost of the Service, but they ought t< bo made iv the way I havo mentioned, gradu ally and with system. It is hurdly neoe?sarj to add that the welfare of tha country do inands a highly organised, intelligent, and patriotic Civil Service. To nttain this end ii is the duty of all parties to oombino. Government insurance Department.— During the recess, I haro mado enquiry intc the management of tho Government In surnnco Dopartmont, and I havo como to th< conclusion that tho institution is conduoted with skill and eucoos.". Economies havo beer effected during tho year which ropro3ent a tota of between £1000 and £5000 on tho annual expenditure, nnd the work of judicbm retrenchment is ftill proeording. During the last fow months an agreement has b,;orj entered into botween the different life Insur.mco Companies doing bueisejs m the oolony, not to interfere with om>h other's operations, and I anticipate that m conaequenco a higher standard will bo obsarved m iho carrying on of that particular class ol insurance work known ns canvassing. The quinquennial accounts have beon comploted, nnd submitt?d to tho ectuarios m .London and the policy-holders may expect to bo ir possession at no distant data of most gratify ing and convincing a9surrnco of iho vitality of tho institution. In ordor to covor any unsound investment a roservo of £25,000 ha; been set nside. This amount is not iuctuded m tho accounts for tho basis of actuarial invo3ligalion ; and here I may observe that thoro seeim no roison to conceal the fact, that ciuriug the period vihcn tho Government insurance buMnoas was untler tho managnBient of a board somo b»d invoatmontj wore made from which losses are likely to acorue, Tbe probable extent of those lotso, however, is amply covered by the reserve mentioned, and tho institution remains sound. Tho Public Trust Office.— The Royal Commission appointed to inquire into tho working of tho Public Trust Department has mado a thorough investigation, and many roforrcs m its aduiinistrntiin will no doubt be suggestod. There is no Kaaon why tho Public Trust Ofiico should not bo as wolladmi'.islei'ed aa, for inatanco, tbo Post OflVia. It is purely n matter of organising, without which qualities neither law?, nor regulations, nor checks, will nehievo eolid results. It io probably a mistake to hivo an officer at the head who m some indefinite way is responsible only to Parliament, which virtually means no responsibility at all. Whatever is done the Public Trust Office miifit bo placed m a position to regain, if it has lost, and to maintain when won, the confidence of tho people. Settlement on the Land. My colleague will ask the lpgisluturo to consolidate and aller the Uw relating to the disposal of Crown lands. Tha limited quantity of I. ho public eatato Btiil available for settlement suggests tho necessity of providing thntin futura tho bond fide settlor shall bo considered boforo tho speculator and monopolist. That the country may know tho notunl state of affairs I submit an eslimato by tho SurTevor-Goneral of tha .Agrioiiltural land Blill ftvailablo m the hands of Iho Orown. "The roma'ndor," ho says, "of the agricultural land-in Hew Zoalund is ao interepereor) with country only fit. for grazing stock, that it teem? moat fair to class both as ono ; for tho low grazing bush lands of tho North Island especially can be must profitably occupied m conjunction -with tho omnll areiiß of purely asiricullurul'land within (hem on this batis, tho low-lying pastoral ond agricultural laud, fit for sottloment amounts to 2,850,000 ncroj. In a tablo accompanying this Statement will be found tho figures showing tho distribution of t.hi 3 land throughout tho several provincial dktriols. The committee will probably agree with mo thnt whon wo consider fihat upwards of 16,000.000 acres of tho boat lundhayn already been alionated m foo simple from the Crown, thero is somo reason why tho remaining availablo ostite of less than 3,000,000 acres should bo administered m (ho internals of tho wholo ot tho people of tlio colony, Tho (imo.il, is believed ha 1 ) arrived whon suitable arons will have to bo purohneod by tho Crown for small fnvru ecttlomont m many parts of the colony. Tho Orown lands avniliblo fov this purpo?o have already disappeared. If the population ia to bo rotainod tho wunts of inlonchng settlor! will havo to bo met. A Eill will bo inli-oduood wit h the nooosfiify safeguards to ostablish n satisfactory syntom of purchuso. If borrowing m tho English omrk'-t is to bo rlißeonl inner), tho monns will huvo to bo provided foi oim'fing on tho work of settling tho waste lands of tho colony. Reoogmeing this fact tho lato Government proposed to amend tlic Govornmont Loans to Locil Bodies Act to enablo money to be adrnncol on tho security of a special rato to bo leriod on the neltlors. While thero m merit m tho proposal, co far as it rolalos to tho moans of providina tho money, tho present Government aro not inclined tc favour a oyoiom which entails tho payment oi another special rato j but we think that if the monfly advanced unr'or the Act for openiup up lands far fialo woio mndo tt first oha:ge on tho procoode of the land, there would be nmplo security without entr.tHne a liability on tho tvxpnyor. Instoid of complication 1 , arising from iißßOSfinjj the ratoa to bo horns by tho land, wo proposo the simple plan ni procuring an of tinmto by tho Surveyor 1 General of tho valno of a blook of land when surveyed nnd plarod m the niarkol, with ar osti'nato of Ihooost of Mads to open it up whereupon tho Minister of Lands would b< plnood m possonnion of tho funds to (lit limit of onohulf tho estimated valuo of the land when it was rondy for diapoaiil.thofundn borrowed for this purposo to bo raiood out ol tho procoads of Iho land. Tho Govemmont think an amendment of tho Act m this dircc tion will givo a freeh impulse to colonisation,

ib Native Lands. le The necessity for providing for the extonig sion of settlement by tho purchase of native o- lands will be seen from the limited quantity cc of Crown laud still available, and a Tote le will bo submitted m the Publio Worts ostiid mates for the purpose s but whilo reserving re to the Grown the right of purchase, the Goat vernment ate of opinion that the time has le arrived for an amendment of the law to enig »b!o the natives to lease their lands, either b- direct to the Orown m perpetuity, or through g, a Board m which they will have confidence :h under the land lawß of the colony, to the 0- settlers who are to occupy. Whatever is 10 done the rights of the natives under tho ig Treaty m accordance with the principles of 3. justice must be strictly maintained. It will is remain to reconcile by law the interests of t, the native race and of the colony, so that the b- beneficial occupation of native territory may it be hastened, and finally secured. The Royal le Commission appointed to enquire into Ihis i. subject hava drawn a comprehensive report, id after conference with the tribes, m which are explained and elucidated, the conditions under wliioli, m their opinion, this end may bo attaiued. My colkaguo, the )9 Native Minister, has given the subject much ,1 attention and will introduco a Bill for the j, consideration of the Legislature with the t, objtot of consolidating the numerous and jt complex native land laws into one concise and ie intelligible measure, and also of simplifying t . and reducing tho cost of ascertainment of (j title and other prooedure of the Native Land c Court. Tho effect of this will, it is hoped, ,f enable a more rapid and satisfactory settlejj ment of tho surplus lands now lying unproi6 duotive m the possession of the natives, c Ikoidbkcb ot Taxation. y I will now ask the Committee to grant its it attention while I bring before it the question d of the incidence of. taxation more espop oially m its relation to taxed land and c incomes. "What is a land tax? The o popular, and, I bolieve, the correct answer to is tha question, is a tax on the value of land, n le«B improvements. Thio is the ideal of the it land tax. The necessity for stopping short of s the ideal was to be found m the imperative 11 requirements of our finance, tho need for proy viding sufficient revenue to meet obligations d without unduly (axing tho necessaries of life n through the Customs. We Bdvnnco, therefore, t just as far towards this ideal mx as the cono ditions of a sound finance will permit us,and if o we stop short of what some might desire, it y must be remembered (hat tho history of finani. oifil roformß and changes ehojro that tho ends II sought to bo attained wore seldom if ever ,s reached at a singlo effort. Wo propose to n introduce a Bill to abo'ish the Property Tax o and to provide for a Land and Incomo Tax, 1- to grant an exemption on improvements up s to the value of £3000 for each owner, and 8 aloo to impose a graduated tax upon oil perr tons and companies, the value of whose o land, Icbb than the £3000 of improvements, c shall amount to £5000 Ib is estimated . that tho reduction of improvements will c cause a loss of revenuo of £60,000, and the 0 graduated tax will bring m an increased .- rstenuo of £01,890. I havo not considered it y advieablo to suggoat a higher rato of gradua- - ted tax than that stated m the tables. The J payment of tho additional sum of £61,890 t will form an important ex!ra contribution to tho rovonue by the holders oflargo estates and - it will be paid by loss than 3000 owners. In 3 addition fo the roductions for improvements • there will ba the exemption of £500 from the 6 ownerß of land, and it is not proposed to grant 1 tho exemption when an owner of land, less l deductions he may claim will not exceed 1 £1500. Thus if a farmer has land worth 1 £800, the improvements on which are valued b at £300, the exemption would mako him not 3 taxable with land worth £1200 and iaiprovei raents £400. Tho balance would bo £300. 0 Tn the aißosimont of tho tax an owner will be » allowod to deduct from his land the s amount of any mortgages, and tho . mortgngoo will pay tho tax on the total 1 of bis mortgages at the earns rate as the f owner on his land, that is Id m the £ ; but 9 tho graduated tax will fall entirely on the , owner and ho will pay this on the full value , lesa the allowance for improvements. For the i purposes of the tax it i 3 considered that the mortgngeo is a part owner of tho land and that F he should share tho ret poneibility m tho mailer - of taxation to whioh principle, however, we 3 make tho graduated system an exception, I 1 ahould hero state that owners will not be asked \ to pay the land tax on tho value of the intorcst t of any tenant who ho'da a leaae in' which he t hna a marketable goodwill. The temnfc will > be aasessed wi!h tho value of his intero3t. We • propose to graduate the tax on tho following 5 scale : -On a total taxable value of £5000 to . £10,000, Hd j on £10,000 to £20,000, 1 2-Sd ; , on £20,000 to £50,000, l|d ; on £50,000 to , £100,000, 14 Bdi on £100,000 and over If J. It will interest the ComI mittoo to know what a land tax is i expected to yield ou this syetom. Supposing t tho ordinary rato to be Id m the £, the r result of on all round tax of Id m the £, of i poreons ac distinguished from companies, has 3 boon estimated by the Property Tax Depart--1 m^nt at £177,596, and the graduated division i of the tax on persona at £16,567. The all--5 round tax on the land if companies at Id, 1 nmounlß to £27,361, and tho graduated divi- ) sion at £15,323. If we add these amounts ) togothor we obtain a gross total of £266,817. • I attach a table giving tho amounts that r would be payable on estates bold by persons t and companies, and from this it will be scon , that more than £25,000 will bo paid as ) a graduated tax m respect of landowners each. of whom has a greater value than £100,000. Those owners are lees than fifty m number. Ac a strong and readily graspsd argument m > favour of a graduated lauri tax I havo had i published with f.ho tables attached, anol.hsr • table giving tho proportion between tho num- ? bora of thoeo who own land and the value ! hell- This tablo deserves the most caroful i attention of all who really desire to coo the • occupation of our lands placed m a more 1 satisfactory condition and it will convoy a ' highly interesting lesoon to those who profess : to believe that tho landed properly m Una > colony is co ownod as to aecuro anything np--1 proaohing tho largest possible graduation • from it. Touching tho principle of a graduated , land tax, tho Committee will probably doairo • to learn how its incidence bears on wealth com' I paved with the taxation paid by the members of I the working clasnos. I wiil endonvorto fhow ' Uio amount of taxation paid through t,he , Customs respectively by an artisan and a , labourer, oach having a family of fivo, the ■ former receiving 53b a wopkor£l37 per yonr, I and tho latter 39s a wook or £101 per your, i Tho artisan would pay m duty £13 *.0s 4d, 1 equal to 91 per cent on hia earnings ; while ) the labourer would paj £11 lla 6d, or 114 5 percent on his earnings. This allows for no ? broken periods, or for periods of sickness, or i non-employment during which tho oarnings ■ might eouse, whilo paying of duty, at least "to 1 some extant, would continue. Let us now t sco what the owner of land worth £100,000 1 would pt\y on a graduated land tax. Deduct- > ing tho £3000 f° r impvnvonientu, at 1| tho • tax will amount to £(190, or about 91 per 1 cent on an asemmo.l incomo of £7350. In 5 addition ho might pay 3 pur eont on his > inoomo to tho Customs. Tho result illustrato.t ' how incquitablo his boon tho synlom of tuxa--1 tion prevailing m thio country, and exhibits i ono efficient cause of tho tondenoy of wealth ! to accumulate rapidly m tho hands of a few. i Assessments will bo made of both the imr proved and unimproved vnluo, and it is hoped 3 that tho offorts will be raoro successful than m t tho past, to securn a fair and oven valuation, for s there is reason to fear thnfc many of tho larger > estatca have not boon assessed at their f >iir 7 flush value. It is proposed to givo greater . power to tho Tax Commissioners m orilor to 3 ensure a morn equitable result. Having , dealt with tho land tax and ita incidonco, I J now como to tho consideration of a tax on f incoruea derived from trndo and commerce 3 Wo bolievo tho property tax to bo grossly unI just m ita operation m imposing without i discrimination burdens on capital whether 3 produotivo or unproductive, and discouraging f industry- For thin obnoxious form of tnxfts tion wo intend to substitute) on incomo tax of b Ism tho £. Tharo will bn an oxomption of f £150, and a deduction by wny of abatement ■ of a like amount from incomes which do not 1 exceed £600. Oompunioa will ba subject to i the norno rate of inoomo tat, but it will bo ', understood m all cases where, inoorao lax ia " ohnrgrd (hat it will not bo loviol on profits s dorivd from Ibikl whioh ia roaohod by tlio lund n tnx. TJndor tho heading of companies aro mii eluded all joint tfcck corporations, banks, shipf pingi fire and marino insurance, and goldmint ing conijiftiiioa. ii>oro will notboany exemption m tho caso of companies. Tho revenue • dorirod will not bo so largo as at prcuont,

but the incidence of the tax will be] • more equitable, and those corporations 3 which are m a progressive atago will bo r treated leniently, while those that are j making large profits will pay proportionately. - Life insurance associations are at present r charged Id m the £on the amount of their ■ funds inveited m the colony. We propose to 1 charge an income tax of Id m the £on tho . income derived from personal property m the • colony, but the land tax will be charged on 1 their land. It is estimated that they will not 1 be so severely taxed as m tho pact and the 1 alteration will, I think, eerve as an encourage--1 ment to invest m the colony, and will afford 1 some relief to institutions that are serving a ! most beneficial purpose. In order to prevent [ misconaception it will be well for me to state I distinctly that income tax will not be levied i on any incouao derived from land or from ■ money lent on mortgage. Such property will I be subject to the land tax only. lv 1 charging the tax on incomes derived from professions and from occupations m whioh profit is not made from capital, and on salaries, we propose to exempt all incomes of £800 and under, and to deduct £300 from all inoomes above this amount. An (income of £600 will therefore pay on £200, and an income 0! £1000 on £700, with a rate of 3d m tho £ on the first £SOO over the exemption, and 6d m the JB above that amount. A person m poieession of £500 income will pay under thi» proposal £2 lOi per annum 5 one m possssgion of £600, £5 per annum ; of £700, £7 10s, and so on. Considering tha comparative independence of those m possession of salaries or incomes above £300 a year, the sm&llness of the rate will commend itself b» fair. On the other hand, it will bo recognised that the possessors of such incomes should not be aiked to contribute the eamo proportion as those who derive their incomes from property, Beftrring genorally to the alleged inquisitorial eh&ractor of an income tax, I beg to assure (ho Committee that I have given this my most careful attention, and I fail to bos any reason why the assessment for an income tax should be more vexatious to taxpayers then that for property tax purposes, and I am convinced that it will be possible to co adjutb tho mode of collection as not to increase at all events the inconvenience of the tnxpajer. I have now to bring together the estimates of land and income tnx, and of amounts receivable under the difforont ichedu!o« of the Bill. Lnnd tax, including land and mortgages, under eohedulea A D, £266,847 ; income tax under schedule B, including bniks, life insurance, gold mining, firo and rr irine insurance, and other companies (o. itting the profits from land and mortgages), and compsuios' debentures, other than mortgage debentures, £47,300 ; income tax under schedule O from trade and commerce, £40,000 ; income tax under schedule D, professions and salaries, £15,000. These give a grand total of £369,147. Pending the results, however, of the triennial vnluation of proporty shortly to be made and the receipt of income tax returns, it will be safe to deduct from the total estimate 5 per cont. as a margin, tbus arriving at a total net revenue of £300,690. At the end of the present year (the now system not coming iuto force until next March) the different estimates will be revised m the light of the returns, and it will then bo potsibio to make a more accurate forecast of tho receipts. The propo-als I have the honour of submitting will tend, I believe, to adjust the diroct taxation of tho country m accordanco with the capacity of the different classes of the community to bear iU The exemption of improvements up to £2000 on land affords a material relief to farmers and improving land-owners whi'e it directly encouragos thrift m oonraying tho intelligence that industry and labour |no longer mean additional burdens. The graduation of taxation on tho large estates is m accordance with the principle of the equality of sacrifice, and will act m the direction of placing a check on monopoly. Hew Zealand is a colony of comparatively limited area, and it is for the people to say whether tho land, out of which all must live, shall be widely distributed or whether it shall bo held by a privileged number. Our policy, we bolieve, raises the issue m the most practical form, whilo it will ba seen not to be unfair when we compare tho taxation contributed by the different classes. The abstract fairness of sn inooruo tax on profits derived from trada and commerce has never been questioned. Our change m this respect gets rid of a number of exceptional tnxos whioh rest on no principle, substituting a simple (as on profits realised. The comparatively lightincome tax under tho head of salaries and professional incomes will fall only upon those whose positions enable thorn to contribute it without inconvenience, the exemption of £300 affording ample protection tjall who will come within the limits of theechcdulo. If, on the whole, we havo not gone far enough m the opinion of some or too far, we ask for that consideration whioh would* weigh ths difficulties of a large comprehensive chauge m the incidenoe of taxation suoh as providing sufficient revenue for our needs and at the samo time relieving the industrial classes from the crushing effect of an unjust system. If wo have not accomplished all that some wished our proposals at least will have gone- far towards the end we have m view. Had the land tax of 1878 been retained and improved wo should by this time have had perhap3 the fairest system of taxation of any country undor the British Orown, but Jthe retrogressive step taken a year later has produced the opposite result and we now aro m tho position of those who havo been wandering on the wrong path, and are forced to cautiously retraco their steps. It is m the light of this experience we submit our proposals with the full confidence that the couutry is ripe for and will accept thorn. Conclusion. Beforo concluding I considor it my duty to diroat tho attontion 0^ the committee to the leason oonveyed by the census returns recently issued. Briefly, tho rough results of the eonsus as shown by tho enumerators give a population of 623,352 persons, cot including Maori«, against 678,482 percons m March, 1886, making an increase for five years of 44 870 ; but tho natural increase for thia period being tho eicrfls of births over deaths is 64,168 persons ; co that the loss by excess of departures over arrivals is 19 298 Tho arrivals recoi'dod m the firo years were 73,386, and tho departures 83,948, giving a loss of 10,562 person?! It would thus appear that the unrecorded departures amounted to 8736 persons. Tho full outgo of population from tho colony ha.3 evidently not boen returned to tho Registrar General m the monthly Bta'emcnts, and it is well known that m tho years 1888 and 1890, and of late, tho steamers for Australia wore greatly crowded, owing to a disposition on the pert of tho floating population to loavc, mainly for Now South Wales. Now hero is a loss of wealth ani wealth-producing power, wbioh demand? the serious consideration of Parliament. Wo naturally congratulate ourselves on the increase of tho exports, but the reason for congratulation euffers serious abatement whon tho diicovery is mado that moro people ale loavinfi than airivinc m tho oolony. If wo. cannot r< tuin our population wo ohould know tho reason why, m, order that tbe remedy for sucli a, stato or affairs may, if possible, ba applied. Tho returns of the census took ub a'l by furpvise. No one lmiiginod that tho !o»s had been ss great, or that the bad made so large an inroad m tho Now Zajland born population. It is not satisfactory merely to repeat tho cry that tho feseation of public trorlts has hoen tbo cau j e of thia exhausting emigration. Doublloss this may be one of tho causes, but, if so, there is tho greater reason to shape our policy to overcome the difficulty. It appears to tho Government that tho first thins to bo done is to obtain an accurate knowleclgo of tho facts. How many pooplo are unemployed, why emploj moot docs not oxiat for nil, whet (tor labour should not be organised by tho assistance of the Government, co that it may bo moro equally distributed, and tnoro oneily fled em- ' ployment — m a word, what ia wanted m thio respect is a systont undor which statistics ni'iy bo furninhod to a central otllno at fro- , quent intervals, weekly or monthly, of the stato of the labour market m ovory part of , tbo colony. Tho unemployed ovil appenrs to 1 bs contred principally m tho large cities to whioh men out of work 600111 to bo attracted. As tho Grot etep m tho treatment of a disoneo 1 is to submit a careful dingnoeia, co wo ' must know the oonditionn purroundinp tho ' unomplorocl malady boforo wo shall bo nWo to ovoroomo it. Wo are thuj naturally led 1 to tho practical considcrnlion of tho establish- 1 mont of ft Labour Bureau, under tho charge of a Minister of tho Orown. Having obtained

c our information tbo next, step of courae is to a opply it bo 09 to utilise Ull3 wealth m tbo 0 Form of human beinga who are wandering c through our streets m search of work, or who -. are leaving us altogether, because there apt poara no gleam of hope if they remain, I r havo referred to tho cessation of public worla 0 as one of the assigned causes of tho exodus ; 0 does it not show that tho method of carrying c on publio works ha 3 beou radically vioious, 1 when they no sooner cease than those engaged t on them aro compelled to omigrate P If the 9 public works had been made subordinate to . settlement they would havo created 1 a demand for popu'alion ; on the other hand, 1 the way they have bean conducted they have t been instrumental m driving it away, I sub* b mit as a subject for tbo earnest consideration i of tho Committee, that not a mile of road or a railway should bo constructed by tho colony 1 m the future without provision heiDg at the 3 .oame time made for Iho loontion of the people i engaged m the work on tho land if possible a m tho neighbourhood- ihiß may mean a 1 radical change m tho method of entering into s contracts, and it certainly will entail a moro 3 direct responsibility on the Government s but c it will transform into a sturdy settler with a ] stake m tho country a large proportion of i those who seeing no proipeot here are ready - to embark for other lands. With n view to i immediate relirf aud stopping the exodus we f propose to put m hand tuoh publio works as b are of ft productive character, and for which i moneys are available. Our first duty ssl/egisla--1 tor*, it appears to me, is to see that it is made . easier for the pcoplo to bare oomfortablo 1 homes. A great aggregate of wealth may bs 1 built up m the hands of a few, whilo for the 0 many it may be pauperism ; but this is not 1 cirilisaiion and it ii not a sign of health m the v Slate. In the "Financial Beform Almanao" 3 for 1891, wo bare the following appalling a ototoment of facti : — "In London one person 3 m «very five will die m tho workhouse, host pital, or lnnatio asylum. In 1888, out of I 79,949 deaths m London, 41,505 being over t twenty, 10,170 wera m workhouses, 7113 m 9 hospitals, ond 380 m lunntio nsyluraß, or . altogether 17,663. Moreover the percen--3 tago is increasing. In 1887 it wna B 20 6 of the total deaths, m 1888 it 5 rose to 23.3 Tho increase was exclusively • m the deaths m tbe workhouses and m,- , firmaries. Considering that comparatively t fow of tbe deaths are those of oMMreo, it ia g probable that ono m every four London adults ( will bo d^iron into these refugea to die, and t tho proportion in -the caee of the 'manual ■ ( labour class * must of course be atill larger. . The number of persons who die whilst m } receipt of outdoor relief is not included m f this calculation. Tho number of pauper 3 funerals 19 not given m tho official returns, . but it is computed to bo at least one third o£ a tha total number of deaths, and that m Bpite a of millions of insurances m burial clubs end b industrial insurance societies." And this f is the civilisation of v the wealthiest t city of tho world ! Well may we, . question the economio and social system of x which this is tho product. Bhould wo not f seek to establish our civilisation m thia now 3 land on a broador basis m a deeper sympathy t for humanity ? Nor need we fear that m i pursuing this aim we ohali fail to reap that 1 material prosperity nf whioh Financial Statei meets aim at being tho embodiment. The 3 wide diffusion of weallh and industry among ) the ueople are the surest guarantees of a j buoyant revenue, and a healthy exchequer, j I see only the cloreit relationship between ; a people well placed and fully employed, > and a state enjoying the highest credit- and f discharging every obligation, moral and legal, s imposed upon it. In urging this coDßidera--1 tion we aro reminded of tho maxim which, wa I believe is the essonco of all sound financial , and social economy, that tho safety cf the ) people is the highest law and demands the j first consideration of the State. I havo, Sir, [ to return my sincere thanks to hon. membora 1 for their atieDtion. At the conclusion of tho Statement the i Premier, m reply to Mr Brje'e, eaid that he 1 proposed if possible to commence the financial ; debate on Friday next. I Progress was reported and the House ro3o i at 9 p.m. 1 -"— ■■- ' ■" ■