FINANCIAL STATEMENT.

Star (Christchurch), Issue 12753, 24 September 1919, Page 5

FINANCIAL STATEMENT.

NEW ZEALAND BUDGET FOR 1910-19. PROPOSALS FOR LAID SETTLEMENT. EDUCATION VOTE LARGELY INCREASED, TKe following are extracts from the' Financial Statement submitted to the House last evening by the Minister of Finance (Sir dames Allen),

I'rom the statements submitted it be observed that the total revenue for the year ending March 31, 1910, amounted to £22.352,372, an increase n? £2.146,150 over the previous year, or £2.16/, 172 in excess of the estimate. The expenditure for 1918-19 showed an increase of £3,553,311 over that of 191.7-18, or £1,119,478 below the amount appropriated, a fact which indicates the prudence and economy exercised by those entrusted with the administration of State services during the most difficult period in our history The main items of increased expenditure were on account of interest and sinking fund on war loans, war and other pensions, and charges arising out of the recent epidemic, and the expenses of the trading department?, which were largely increased owing to the advance in the cost of materials and in wages.

DEFENCE. The expenditure out of the Consolidated Fund for Defence administration, including Ordnance and Supplies services and the maintenance and training of the Territorial Force, during the financial year ended March 31, 1919. amounted to £416,427, or £11,685 less than the_araount expended during the year 1917-18. The requirements of this Department for the current year will be fully explained in the annual Defence report. WAD EXPENDITURE. At the end of the financial year 191819 the war expenditure of this Dominion, including imprest advances outstanding, had reached the sum ol £62,636,720; whilst towards meeting commitments connected with the New Zealand Expeditionary Force, including charges for the maintenance of our troops in the field, equipment, supplies, pay. allowances and other incidental charges, there was a cash balance and temporary investments amounting to £6,084.469. These sums do not include provision for interest and sinking fund charges on war loans raised, nor for war pensions, which are a charge upon the ordinary revenue of the Dominion. Full particulars of the war expenditure will be placed before you later, but I must remind honourable members that, notwithstanding the fact that the war has concluded, our financial responsibility remains "very great, as large sums will have to bo provided for gratuities, cost of repatriation, etc.. It will bo necessary to continue to make generous provision lor the expert medical treatment and skilled nursing of our sick and wounded, for whom special hospitals and sanatoria have been provided- The payment ot retrospective married allowances to soldiers’ wives, for which approximately £500,000 was authorised, has absorbed £230,000 to date, but large numbers of applications are still coming in. Heavy charges for the sea traiuwort of the returning troops, their Pay; 1 maintenance, etc., have to ho met. I submit hereunder a statement showing the receipts and expenditure of the j ” a r Expenses Account as disclosed by tJio Irea&ury books for tho Quarter ended J uue 30, 1919 i Balance brought forward on April 1, 1919 . 7 979 gos . Receipts— ’ ’ Lean money . . . 1,645,610 i Other .receipts . . 31,913 j ■ 1,630,E53 f 9,600,379 Expenditure . , . 1,300,825 1 Celanco at Juno 30, 1919 . i ’'£8,359,553 *The balance on June 30 is made up as folic wi:—Cash in Public Account, £443,351; investments, £3,820,218; imprests outstanding, £1,095,911; total, £3,359,533. I REPATRIATION OF DISCHARGED j .SOLDIERS, j As indicated in the Budget of last year, a Department of Repatriation ! has been established under the auth- , ority of the Repatriation Act, 1918, to j deal with all matters affecting the return of our soldiers to their civil life. It has also taken over the duties and work hitherto undertaken by the Dis- ! bharged Soldiers Information Dopart- | ment. The new Department, which I commenced its activities at the begin ning of the year, is concerned with the soldier after his discharge, and was controlled by a Ministerial Board comprising the fodowing members of the Executive Council: The Minister of Railways (chairman), the Minister of Agriculture., the Minister of Education, and the Minister of Lands. Quite recently two returned officers, wiio had been on active sendee with the New Zealand Expeditionary Force, on their elevation to Ministerial rank were appointed to fill the vacancies on the board caused by the resignations of the Ministe* of Agriculture md the MinLier of. Education.

It will be remembered that the proposal to control repatriation by a composite Board of Ministers evoked considtiable criticism. The experiment, however, nas proved satisfactory both to tlie Department and to its District Boards and Committees. In this conne< lion, too", it is interesting to note that the,^Dominion of Canada, which inaugurated its Department under the control of one Ministerial head known as the “ Minister of Soldiers’ Civil lieestablishment,’' has now found it expedient, after two years of experience to vest the control of this great national work in a Repatriation Committee consisting of six Ministers of the Dominion Government. _'ihe Repatriation Board, in organising the work of the new Department, came to the conclusion that the most satisfactory results would he attained by decentralising control and administration as far as possible. The District Repatriation Boards and Local Committees constituted under the statute have therefore been given . full executive poweis. They have authority to deal .with and decide applications made by , discharged soldiers in their respective, districts for assistance in any of the directions covered by the regulations. This policy of decentraiised control lias proved a gratifying success, and has enabled all cases to be •;disposed of with the utmost dispatch. 'District Boards have been established at each of the four main centres,

an d Local Committees with offices and paid staffs have also been set up at the principal provincial towns. In audition, fifly-six honorary Repatriation C ommittoes have been constituted throughout the Dominion. These bodies are composed of members representative of and nominated by such organisations as those of Die returned soldiers, labour and the industrial, commercial, patriotic and social interests of the community, and they are carrying out their duties with enthusiasm and with a very sympathetic regard for the soldier applicants. Hero again the Dominion has reason to bo grateful to' the citizens who are giving theyt services so freely in the all-important work of reabsorbing our artnv into civil occupation. The local administrative staffs have been recruited exclusively from the ranks of the discharged soldiers themselves. The assistance rendered by the. Department to discharged soldiers may he classified under three main headings. as follows: " ‘ financial.— District Boards or Local Committees may grant loans up £3OO to enable soldiers to set. up in business, n nd l° a y s np to £SO for the purchase Oi furniture, tools of trade, or equipment. Loans in excess of £SO are subfeet to the approval of the Ministerial BoaroNo interest is charged on the first £SO, or on any loan up to £SO. In this category over three thousand six ..undred applications have, between tho middle of February and August 20 last, been approved, involving advances to the extent of over £380,000. From present indications the soldiers who have been established in business on their own account by this menus are doing well, and are meeting their obligations m the matter of repayments, both of interest and instalment of principal, in a qnite_ satisfactory manner. Training. —Comprehensive arrangements have been made for the training of returned soldiers—(a) Whoso disabilities render them unfitted to resume their pre-war occupations: (hj) who en'l!dcd at a comparatively earlv age and who are consequently not ’ qualified tradesmen, also apprentices completing their indentures; (c) who desire to oh" tain farm work or who may wish to take up land under the Discharged Soldiers Settlement Act. hut who have had no previous experience. At the present time over sixteen hundred men are being trained under the various schemes. All trainees are granted financial assistance by the Department in the form of sustenance or subsidies. Employment.—The Department fin--01 uding the original Discharged Soldiers Information Department) has up to date placed about nine thousand men in and as the number at present receiving unemployment sustenance in the whole Dominion is onlv seventeen it will he seen that the uhemploymc-- 1 - dinn is well in hand. The Department rise pays transporta--1 -.'i expenses of men proceedin" to employment. and the medical fees of applicants for positions in the Public Service. EDUCATIONAL AND VOCATIONAL TRAINING. Special attention is paid to the cducational and vocational training of roturned soldiers by the Defence Department. Workshops have been built and equipped at nineteen hospitals and sanatona. The funds for necessary buildmgs and a considerable portion of the equipment have been provided by the Aew Zealand Red Cross and other pate notic societies. There are sixtv-eight instructors now engaged hv the Departe ment, and the subjects taught- number xiity-nine. The work has? a valuable curative effect and is designed to prepare soldiers to go hack to civil life, the educational and vocational training branch works in close association with tne Repatriation Department, which arranges to oarrv on the training after the soldier is discharged- The total number of soldiers benefiting from the scheme m August was 1033, some of these attending several classes, the total number on the class rolls being 1457. FINANCIAL ASSISTANCE BOARD* During the year the Soldiers’ Financial Assistance Board held 245 meetmgs and dealt with 11,652 applications, including 1831 cases previously oonsidtllls number. 2150 were demined, 1920 were withdrawn by the applicants, and 7552 grants were authorised. Grants amounting to £163 601 were approved, and the sum c\ £137 445 was actually disbursed. It was hoped that the hoard’s activitios would cease soon after the signing of the Armistice, hut. owing to the extension of the regulations porniittirm retrospective grants, large numbers of new applications, as well as applications previously declined through want of jurisdiction, are being received.

EDUCATION. In the year 1914 the Education Act tyas consolidated and the .New Zealand University Act amended. Both those Acts had been prepared before the outbreak of war in August. 1914. and the Government in its present proposals to irui litUnent has Lccu lorceci to take into consideration the changes in conditions caused by the war, especially with regard to tlie purchasing power'of money I'he provisions of the Education Act for grades of salaries of teachers enacted in 1914 cannot fairly be continued under the altered circumstances. Similar considerations apply to the measure of annual grants from the Consolidated Fund for secondary schools and technical schools; aud it is also felt that the claims of the Now Zealand University and of the four University colleges to* increased grants must be recognised. During the second session of last year the Hon J. A. Hanau, then Minister of Education, obtained from Parliament, under section 37 of the Appropriation Act, authority to expend an additional sum of £IIB,OOO for the purpose of increasing the salaries hud allowances of public, school teachers, Native school teachers, pupil teachers, probationers and training college students beyond the amounts authorised by the tables to the Education Act. Only onefourth of that additional amount of £IIB,OOO came to account during the financial year ending March 31, 1919, and the expenditure for that year was therefore not greatly increased. But the whole of the. £IIB,OOO necessarily comes into the expenditure for the present year, and the Government. has found it necessary to make provision on this year’s estimates for a further sum of £200.000, thus rendering available curing the present year for increases of. salaries and. allowances to teachers empkyed and others engaged in primary education a total of £318,000. This addition, together with, the increase due to the natural . growth of population. and the greater cost of services and .commodities, results, in the’annual

charge on the Consolidated Fund for primary education showing an increase in the present estimates of £331,000 in e-£<-e;s of the estimates of last vear. feiceia' increments of the rates of annua. grants to secondary schools and r 00 s i nv °lve a further sum of £39,000 on the present estimates. Authority for such special increments •will be provided by the Education Amendment Act to lie introduced this session, \vith respect, however, to the increases of salaries and allowances to those engaged m primary education, it has been found impossible, within the i m £ a^V nb *? : arnem i the provisions ot tie Education Act, 1914, relating to Staffing and salaries, and therefore'the precedent created by the late iUinister ot Ivin cation m section 37 of the Appropriation Act of last year has been followed, and power will be. sought to make the necessary additions hv rcmila-t-ioa instead of by statute. ' Tlie’ increases will all take effect’retrospec-tivx-J.; as from April 1, 1919. To provide an adequate number of trained t.e;.-,hor- inducements to outer and conin the Education service should urn ce substantially inferior to those Oiieivd in the Public Service and an enort has been made to brin~ the <saHnes mid allowances of men and women engaged in the teaching profession up to approximately that scale. The number ot trained teachers now enmi'vd in education is insufficient for the present needs, and such reforms as reduction in sate of classes cannot vlfecir.l without increase in the-e numbers. ,Wordn.g.y tins year provision U m ,vl e not 'any for hjgner salaries, bin, ;; |so f or !lie , Naming of a greater number of sr«<k nts at the training •Vde-res am] increastvi aHowanees to such students. A Bid amending (i le Xcw Zealand tnirersuy Act is also proposed, hv vt nch the annu-d grant to the University is increased by £IOOO, the annual giants to each of the University colmges by £2ooo. with a further ‘£2ooo to the Otago b mvcrsi tv for its Aledical School, and a grant of £2OOO for workers extension lectures. The increased grants to the Universities and colleges mi! not commence until Ann! 1. 1920. and tnerefore provision in those respects does not appear upon the present, estimates. I have non to turn from the charges tor educational purposes upon the Consolidated Fund to the subject of grants irom loan funds for capital and expenditure on land and buildings. The method which lias been adopted up to the present time for provision of grants for such purposes has been io appropriate out of the nicnevg to be raised in each year by loan for public works a certain limited part for education purposes, with the result that annuallv the demands for general public works such as nailways, roads and bridges, and post and telegraph offices, hare been brought into competition with the demands lor educational lands, buildings and improvements. Tim total amounts available for all public works during the past five years have been necessarily limited, and the supplv of monev for educational grants has been thereby reduced to a far less sum than was necessary f or normal expansion, ihe country has therefore to meet an accumulation of unfulfilled past demands for such education purposes as well as the normal requirements of the present and of the immediate future. -New buddings are required throughout the Dominion, and additions to a. “Jar"© proportion of the existing buildings ; ,ro absolutely necessary. To attempt building operations on such a scale as would bo necessary to meet ail the demands immediately would be to court failure ihe Government lias decided to ask Parliament to enable specific loans to be raised, for education lands and buildings omy, to the amount of half a million during the present vcar, and three-quarters of a million during each of the four following years. The analogy of the loans for land settlement has *** Showed in tho Bill which, will be submitted to the House, so that the moneys will bo raised as required and as the operations prooeec,V. , ,^ 11S "«>ans and without eon.hot with the activities of the other Dcnovtnicnts of State in respect of public works the Government hones that full provision can be made »’ur the acquisition of lands and the erection of buildings to be commenced immet,lately and to be proceeded with as rapidly as the conditions of supply of labour and of material will permit. Out of the Consolidated Fund provision will continue to be made for maintenance and upkeep, but it is not proposed to continue the present system of grants to the Education Boards to be hekl as reserves for restoration of buildings. RESPONSIBILITIES. TO BE PROVIDED BY LOANS. Tim following table indicates generally the loan moneys required durin-r the twelve months coinmenciim Se >- temler 1, 1919, also the unexhausted authorities for borrowing already provided. or to be provided this session, the cash balances available at that date tnd the souices from which it wul be necessary to secure the loans.

In addition to the above new icquirenients the Treasury will also have to raise money to carry on the development works and other State activities now in progress throughout the Dominion. ACCUMULATED SURPLUS. It is not, in,my opinion, wise to rai-e the £12,000,000 required for discharged soldiers settlement by public subscription in Ne,v Zealand, nor is it feasible to neat a loan for the purpose outside. New Zealand. I propose, therefore, to provide this amount from the accumulated surplus, which it is hoped will be restored to the full amount, £15,239.561, hy March 31. 1920, leaving a balance atter making this provision of accumulated surplus £2.789,561. The Reserve Fund securities, which at present amount to £BOO.OOO. have proved of great assistance during the war time, and it is, in my opinion, advisable to strengthen these by unlising £1,200,000 of the remaining accumulated surplus in order to bring the total Reserve Fund securities up to £2,000,000. I propose that the balance of the accumulated surplus, £1,539,561, be carried forward either to strengthen the Consolidated Fund during the early months of the financial year-when the revenue is insufficient to meet the expenditure, or to be. available for investment iu loans required for land , settlement for soldiers and authorised by the

Discharged Soldiers Settlement Loan Act, 1919, or other purposes in connection with the war, should any difficulty present itself in raising money in New Zealand or elsewhere. TAXATION. It would bare been a great pleasure to me to have been in a position to announce this year some reduction in the heavy burden of taxation; the estimates of revenue and expenditure, however,-make it clear that this must be postponed, nor has there been time for me since I took over the portfolio of Finance to consider anomalies which exist and make readjustments- 1 trust, however, that the time is not far distant when by the increase in population and a return to the more normal rate of expenditure some relief may be afforded to the taxpayers of the country, ESTIMATED REVENUE.

When the draft Budget was placed in my hands on September 1 last the estimated expenditure exceeded the revenue by £934,000 with the supplementary estimates yet to come. Heads of [Departments were asked to meet me, and as a result of their loyal co-oper-ation I am pleased to report that the estimated expenditure was reduced by approximately £400,000. Provision for increased expenditure on account c f the Education Department, which would have been postponed for the supplementary estimates but which is now included in the main estimates, reduced the £400,000 to £200,000. As a result of experience of the revenue received during the five months of the financial year it is gratifying to note that the estimated revenue for the year will be larger than was at first anticipated. For the year 191920, under the main heads of each of the important Departments, I estimate Iho revenue at—

CONCLUSION. GRATUITY ALLOWANCES, ETC. Proposals with regard to gratuities allowances, pensions, etc., to members or the Expeditionary Force and others were submitted to the House on Friday night Just. Payment of gratuities and-allowances will be provided for out of the loan authorities granted last year on account of which ten million pounds' is now being raised. Twice in the last iivo years it has fallen to my lot to deliver the Financi 'l Statement, namclv. on August 6, 1914, and to-day. Many anxious moments have passed during the interval, but wc never lost confidence in the justice of our cause and the ultimate success of our arms. The Statement made this day is the first delivered since the signing of Peace, and the occasion seems opportune to place on record the fact that this country fulfilled all its obligations to the Motherland, »and never failed to supply its own Expeditionary Force with adequate support right up to the signing of the armistice. It may fairly he claimed that the assurance of this practical sympathy and support did much to assist our soldiers in securing the splendid reputation which they have earned, and which wo may rightly look upon as one of the most valuable assets this country possesses. But this has not been achieved without serious loss, serious not alone o- <" v ;»e sad hearts of relatives an.. . k.-cs who mourn the dead, but also because it will be very difficult to replace tbc loss of those who, had they been spared to return to their homes, would have been associated with us now. and later on would have taken our place in endeavouring to solve tlie many complex problems which the country is being called upon to deal with. But we can and ought to do something to perpetuate the memory of the men arid women who gave their lives for the benefit of th'se of us who remain to share in the blessings to be enjoyed from what we hope may prove to be a lasting peace. For this purpose it is proposed to set aside this session not less than £l(X).0r t 0 to erect a national memorial, designed and carried out hv the best talent available, wh : eh will perpetuate for all time the memory of those who with self-sacrificing devotion gave their lives to save the Empire, and be a constant reminder that there is no nobler duty than to sacrifice self in the service of all.

■Requirements. For Year ending 31st August, 1920. Cash in hand & Unexhausted Authority, etc., Imprest, 1st Amount. and Mow Authority. Sept., 1010. Cost M.Z.E.F. nnd treatment of and wounded, repatriation, Gratuities and allowances Discharged soldiers settlement Land for soldier settlements sick etc. 8,775,000 . 6,050,000 . 12,500,000 . 2,000,000 Finance Acts (1918) £15,095,215, of which £10,000.000 is now being raised in N.Z. Discharged Soldiers Settlement Loan Act, 1919, £11.079, U0 Discharged Soldiers Settlement Loan Act, 1919, £2,000,000 *7,914,783 l,42l),SOO Mil Tcbil for soldiers . Public works .... Education buildings etc. . 29,305.000 . 500,000 . 600.000 £2,090,000 To be provided 1919 (£500,000 for current year and £750,000 for subsequent years) 435,680 Nil Total .... . £30,325,000 *A considerable amount of tins lias already the Treasury. been spent, but vouchers have not readied i

Customs .... 4,400,000 Railways .... 5,000,000 Stamp and death duties 2,400.000 Post and telegraph i,9io;oco Land and income tax 7,360,001) Beer duty .... 270j000 Registration and other fees 110,000 Amusement tax 40,000 Marine . 58,925 Miscellaneous . , . 902,000 Territorial revenue 1 . , 194,300 Endowment revenue 108.340 Other receipts . . s 45,000 £22,919,165 I estimate’’ a surplus for the vear 1919-20 of £478,108, which is available for the supplementary estimates, and jfc made up as follows:— / £ Estimated revenue, 1919-20 22,919,165 Estimated expenditure 22,441,057 Available for supplementary : estimates, , ■ t £478,103