THE BUDGET.

Star (Christchurch), Issue 95, 2 September 1868, Page 3

THE BUDGET.

[BT ELECTEIC TELEGBA.PH.] Wellington, Sept. 2, 12.30 a.m. Mr Hall opened his budget at 9.40 last night by regretting that he had, *"or the first time in the history of the •-olony, to announce a falling off of revenue, and to speak of financial difficulty. He explained in detail the difficulty of getting into working order the financial machinery created by the Public Kevenues Act, whicb had occasioned delay in the accounts between the General and Provincial Governments. In spite of these drawbacks, he was able to lay before the House a detailed statement of accounts for the past financial year, which had never before been done by any Treasurer at the time of making his annual statement. He suggested a change in the date of the termination of the financial year to an earlier period, to obviate the otherwise necessary delay which must occur every session before the delivery of the budget. He congratulated the colony on the satisfactory settlement of Imperial and Colonial claims which was due to Mr Weld's sending home half a million of debentures, and to the exertions of Messrs Fitzherbert and Richardson. The revenue of last year was estimated at £1,084,000, but the actual receipts were £980,700, to which must be added £25,000 Treasury Bills. The decrease in Customs was £80,198 ; stamps, £16,595. This was owing to the departure of the troops, no loans to expend, and the low price of wool, &c, which had occasioned general depression. The Post-office and Telegraph revenue, which was a good index of the condition of the colony, had increased. Believing that the use of stamps was largely evaded, the Government had under consideration measures for repressing and prosecuting whenever an evasion of the Stamp Act was discovered. On the expenditure of last year, there was an apparent saving of £154,000 partially because eleven months' salaries had been included, which was equal to £51,000. The cash balance at the Bank was £46,900 out of which £25,000 Treasury Bills have to be paid. There was alao an asset from Southland of £55,117. The trust funds amounted to £167,000 which was all invested. The particulars of the Loan Consolidation scheme shewed a saving to the present time of £11,000 annually to

the colony, and about the same to the i provinces, which more than compensated for the increased capitalised debt. The total amount received for the loan of £1,114,000 is £1,080,580. There will be, however, -£48,000 even of this, not required for the specified purposes under the Loan Act which (after deducting the cost of raising the loan, say at least £10,080), will be appropriated to liquidating old Treasury Bills, still amounting to £125,000, exclusive of the £25,000 above mentioned. A full statement of liabilities on account of confiscated lands will be submitted, and, however unpleasant to have to pay, where profit was anticipated, the honour of the Government requires it to be done. The receipts from confiscated lauds amounted to 12,000/, and the payments to 26,000/ ; there were also further accruing liabilities amounting to 28,000/ for surveys, &c. The receipts from the sale of confiscated lands would cover this in two years ; and the Government proposed to issue two year's Treasury Bills to meet it in the meanwhile. The 55,117/, available from Southland, would be appropriated as follows : — 15,000/ for anew Government House, and increased offices for the Government and Legislature, 3000/ for marine surveys, and 8500/ for telegraphs, including an extension to Wanganui. The remaining 25,000/ odd would be reserved to meet renewed native disturbances, should they occur. The estimated revenue for 1868-9 was as follows: — Customs, 800,000/, bonded stores, 6500/, stamp duties, 63,000/, telegraphs 15,000/, post-office 60,000/, miscellaneous 56,000/ ; making a total of 1,000,500/. The estimated expenditure was : — Civil list 27,500/, permanent charges, including interest and sinking fuuds 320,542/, public domain, 2880/; public departments, 37,863/; law aud justice, 55,587/; postal, 106,401/; Customs, 41,781/; Native, 12,384/; miscellaneous, 30,029/; Militia and Volunteers, 22,183/; defence, 47,497/; making a total of 704,647/. These figures shew an increase on the permanent charges of 6277/, and a decrease on all the rest, viz. — domain, 1196/ ; departments, 5704/; law, 13,561/; postal, 42,178/; Customs, 2,690/; Native, 11.160Z; Miscellaneous, 18,054/, Militia, 2,355/. The Defence was 109,025/ last year, but it was charged on loan. The office of Defence Minister was to be abolished at the earliest moment. The proposed saving in items this year, as compared with similar items last year, was 152,149/. The Government was unable to announce any reduction of taxation The taxes in New Zealand were exaggerated. They were uot so high as in England when compared with the rate of wages— there, it was 3/ 0s lld, here, it was 4/ 10s. The most serious obstacle in the way of retrenchment was the present financial relations between the General and Provincial Governments. Four provinces out of the nine had noihing left out of their share of the Consolidated Revenue ; as, after paying their shire of Provincial charges, interest and sinking fund, they were actually in debt. The provincial cry to every Ministry was " more money or your life." The Government had decided to recommend that on the Ist of January next, the partnership between the General Government and the proviuces should cease, and that the funds — should any be required — for provincial administration should be specifically voted by the Assembly ; also that the provincial debts should cease to be charged against the provinces which had raised them ; that the harbour management should be combined with the Customs, and placed solely under General Government management. A capitation grant of seven shillings, based upon the census population returns is to be paid to the provinces in aid of police, gaols, &c, and to be spent under audit. Besides this, the provinces would retain their land fund, and such local revenue as might be raised by Acts of the Provincial Council. Had the plan been in operation last year Auckland would have gained 9195/ ; Taranaki, 1967/ ; Hawke's Bay, 3093/ ; Marlborough, 2132/, and Southland, 17,974/ ; while Wellington would have lost 11,100/. Nelson, 20,453, Canterbury 767/, Westland 2213/, and ! Otago 10,894/. Southland, by reason

of the largeness of its debt, would have to pay 12,000. annually from its land fund, while to Nelson 90,000/ cash clown would have to be paid, and to Wellington 15,000/ by the General Government in full. A compensation lump sum down would be preferred instead of an aunual payment. The sinking funds of all provincial loans to be vested in comptrollers and two trustees, as also those of the colonial loans. A sum of 193,948. will shortly accrue in the hands of these commissioners, out of which the Nelson and Wellington compensations are to be paid. The debt of 200,000/ charged ou the territorial revenue of the Middle Island, and the 180,000/ expended on land purchases in the North Island under the arrangement of 1856 to bo released. The proposed new Provincial scheme could only trench on the territorial revenue of the Middle Island provinces in the event of their consolidated revenue not coming up to their interest and sinking fund, &c, which was an improbability. By the first of the foly lowing resolutions he now proposed, the Government would stand or fall. In the others they would accept amendments in detail : — 1. With a view to simplify relations between the Colonial and Provincial Governments, &c, the present system of accounts be abolished, and the Consolidated fund bo at the service of the General Assembly charged with the loans, interest, &c, and also the expenses of Colonial Government, harbours, &c. 2. That 90,000/ be paid to Nelson, and*ls,ooo/ to Wellington, and Southland to have 12,000/ deducted annualty from her territorial revenue. 3. Capitation grants to be appropriated annually for police and gaols. 4. That leare be given to bring in a bill as above commencing on Jan. 1, 1869.