FINANCIAL STATEMENT.

Wairarapa Daily Times, Volume XXVII, Issue 7536, 12 August 1903, Page 2

FINANCIAL STATEMENT.

In Committee of Supply, last evening, tho Premier (the Right Hon. R. J. Soddon) delivered the Financial Statement, of which tho following is a synopsis:—

The financial position of tho Colony is sound and satisfactory. As members aro already aware, from tho Public Accounts which aro before them, we closed the past year with a credit balance of £303,905.

The best way to improve our position is to keep public works expenditure within reasonable limits, practice the strictest economy and prove ourselves self-contained, and seek as little money outside the Colony as possible. RECEIPTS AND EXPENDITURE. During tho year 1902-3, as regards tho receipts of tho past year, it was estimated that tho revenue proper would produce £0,026,000. The actual figures, however, reached £6,886,609, or £360,609 in excess of tho estimate. Of this amount of, excess Customs has yielded £115,613,1 railways £107,551, and stamps £59,939. Other items of revenue show increases totalling £62,014, while only in tho two items of land tax and beer duty the receipts fall short of the estimate by £5538. Tho Customs revenue was estimated at £2,220,000, being nearly £19,000 in excess of tho previous year's revenue. The actual receipts were £2,335,643. Bailways produced £1,982,551, while the receipts from stamps amounted to £978,939. The receipts under tho head of Land Tax fell short of the estimate by £3,938. Tho amount actually recoived from the increased valuations was £1,000 more than expected, but the remission of revenue owing to the reduction of the Mortgage Tax was £30,000, instead of £25,000 as anticipated. The Income Tax produced £15,684 more than the estimate, the two heads of revenue together exceeding expectations by £11,746. The territorial revenue, which was set down as £230,000, produced £252,277, or £22,277 more than expected.

Comparing the actual receipts with those of the preceding year, honourable members will find that' the revenue of the year closed is better by the sum of £333,539, made up as follows:—Customs £134,527, Railways £113,062, Stamps £70,268, Land and Income Tax £4513, Beer Duty £166, Registration and other fees £7389, Marine £1512, and Territorial £2659, the only falling off being a small small sum of £557 in miscellaneous revenue.

Expenditure during the year 1902-3:— The expenditure of the year out of the ordinary revenue account amounted to £6,214,019. The charges authorised by the permanent appropriations show, as compared with the estimate, an over expenditure of £65,192. Of this sum hospital and charitable institutions are responsible for £20,274, subsidies to local bodies for £4049, " thirds" and " fourths " for £5162, and endowments for £2056, while the payment of two years' contribution in respect to the Australian naval defence within the year is answerable for £21,493.

RESULTS OF THE YEAR,

The results of the transactions within the Ordinary Revenue Account for the year may be set forth as under : Balance on March 31st, 1902, £270,489, out of which there were transferred to Public Works £200,000, leaving £70,489; actual receipts for 1902-3, £6,447,435 ; actual expenditure for 1902-3, £6,214,019; excess of revenue over expenditure, £233,416 ; surplus at March 31st, 1903, £303,905. * PUBLIC DEBT. The gross public debt on March 31st was £55,899,019, showing a total increase for the year of £2,932,572. Of this sum £1,750,000 was raised under the Aid to Public Works and Land Settlements Act of last session. The requirements of the Advances to Settlers Office caused the raising of £450,000 (including £200,000 obtained on short dated debentures, and since paid off), and for the acquisition of land for close settlement we raised a further sum of £338,700. Grants to local authorities required £278,000 under " The Local Bodies Loans Act, 1901," and for the purpose of purchasing and managing coal mines £52,000 had to be borrowed under " The State Coal Mines Act, 1901." £4232 of New Zealand consols were insoribed and £57,500 debentures for accretions of sinking funds were created under " The Consolidated Stock Act, 1884."

On March 31st, 1902, the net debt was shown as £51,837,631, and on March 31st, 1903, the net debt is set down in the public debt table as £53,585,780.

PUBLIC WORKS FUND,

£187,334 came to credit in the respect of tho loan of the previous year. We also received £750,000, being the proceeds of debentures issued in the Colony under " The Aid to Public Works and Land Settlement Act, 1902," besides instalments to the amount of £260,000, on account of the million loan recently raised in London. To these add £200,000 transferred from revenue, together with a small receipt of £1616, which, with the balance brought forward to begin the year with of £454,059, made a total available ways and means of £1,853,009. Out of thoso moneys £1,420,264 wero spent on railways, roads, and other public works, and £88,180 for charges and expenses of raising loans, leaving a balance to be carried forward to this year of £338,565. It will be seen from this that the amouut received in respect of tho new loan has fortunately not been trenched on, and is available for this year's expenditure. The expenditure on railways, roads, and especially public buildings, must be curtailed, notwithstanding that our ability to meet interest charges is much better than in the years gone by, when much larger sums were borrowed, Jn the ourtailrnent a discrimination for such "works as the North Island Trunk railway should be made, and in respect to the other railways, roads and other works the decreased expenditure should bo spread evenly throughout the Colony. LANDS FOR SETTLEMENTS ACCOUNT. The account had a balance of £382,692 to start tho year with; debentures amounting to £338,700 were credited and sold in the Colony; £109,820 was received from rents and lease fees; £10,335 from interest on Investment Account, aud £846 from miscellaneous receipts. On tho other hand, £353,462 was expended in tho purchase of estates, and £15,521 in roading, survey and other expenses ; and £93,599 was recouped to the Consolidated Fund in respect of interest paid on debentures issued. LOANS TO LOCAL BODIES.

The following figures will indicate to what extent the local authorities havo availed themselves of the reduced rates of interest—At 4£ per cent., £964,361; at 4 per cent., £30,430; at 3£- per cent., £674,689. Seeing that the rate of interest is now higher than when the Act was passed fixing the rate at 3| per cent., it may become necessary to raise the interest chargeable. lam pleased to be able to report that the payments of interest by the various local bodies on the inscribed debts continue to be fully and punctually made.

CUSTOMS DUTIES,

Tho buoyancy in the revenue derived from Customs duties, notwithstanding the largo reductions which were made during the session of 1900, will be readily seen by the following figures: Year 1899-1900, £2,107,566; year 1902-1903, £2,33s,643—increase during tho three years 108 per cent. The taxation through the Customs per head of population was ten years ago £2 7s lOd; it was in 1902, £2 13s 9'[d. Spirits, tobacco, cigarettes, cigars, and beer account for an increase of 4s 8d per head. This may bo termed voluntary taxation on luxuries. POST OFFICE SAVINGS BANK. The excesss of deposits over withdrawals in 1902 was £360,847, an increase equal to 534 per cent, over the excess in 1892. During tho ten-yearly period 1892----1902 the number of depositors increased by 102 per cent., tho number of deposits by 120 per cent., the amount at credit of depositors by over 140 per cent., the amount deposited by 170 per cent., and the avorago amount at credit of each depositor increased from £25 9s to £30 5s Sd, or 19 per cent. The total amount at tho credit of depositors on December 31st last was £6,883,787, compared with £0,350,013 at-the end of the previous calender year. OLD-AGE PENSIONS DEI'AKT.MEN-. year the amount estimated as required for old age pensions was £210,000, while the sum'actually paid was £209,156 5s sd. It is estimated that ££15,000 will be sufficient to meet all claims this year, FARMING INDUSTIUES. There is considerable increase in the quantity of wool exported, and the prices realised aro an improvement ou thoso for thepreviousye'-r." Tallow iind sheepskins show satisfactory advances, both in quantity and value. Tho exports of frozen meat exhibits large increase in quantity. London prices of butter were cquill to those of tho previous year, but, unfortunately, as the season advanced, a

considerable fall in prices of all butters on the market was experienced. On the other hand the price of our cheese continued very high. The area under grain, especially oats and wheat, was larger last season, aud although crops ripened later than usual, the yield per acre was the most abundant for some years..

Tbe fruit and poultry industries are making rapid strides, and tbo time is not far distant whon the export of these commodities will assume important dimensions. WATKR POWER FOR ELECTRICAL PURPOSES. I am happy to say that arrangements aro almost comploted for Mr Handoock, one of the best American experts, to visit the Colony. No one can deny tbe importance of this matter; Nature has been bountiful in respect of raw products, and natural motive powers, and has destined this country to be a selfsustaining one.

SOUTH AFRICAN TRADE. The opening-up of the South African market has relieved tho Colony of immense quantities of frozen meat, and the taste of our fellow colonials appears to be for a lighter sheep than is suitable for the London markets. Tbe large quantity of beef for which there was no demand in the Home market, has found ready salo in South Africa. Butter is going forward in large and increasing quantities, while for poultry an unlimited demand exists at top figures. Several shipments of frozen fish have been sent, with the result that largo orders are on the way. Our oats have t. found a splondid market this year in Africa, no less than 175,969 sacks having gone forward in tho subsidised steamers up till tbo 14th of last month. Pork, cheese, preserved meats, potatoes, bran pollard, oatmeal, grass seed, fruit pulp, leather, and various other products have been taken in larger or smaller quantities, and the possibilities of trade in many of these articles are very great.

BANK OP NEW ZEALAND. Proposals will shortly be submitted to the House in connection with the Bank of New Zealand providing for a further guarantee for a specified period, but for a less amount than previously given. The Government wish to establish as between the Bank and the Colony a limited partnership for a stated period which would bo to the advantage of both, and legislation giving effect to that proposal will be submitted in due course. THE LAST LOAN. I do not regard the loan the failure which some of our opponents have thought fit to call it. Tbe truth is: We have got a million and a quarter at a price which, considering the state of the market, is a good one. OUR NET INDEBTEDNESS. In March, 1882, our net indebtedness stood at £27,315,593, or £54 Is lid per head, and had increased by March, 1902, to £51,837,631, or £65 12s 4d per head. The debt of the local bodies adds to tbe liability. It increased from £3,277,584 in 1882 to £7,839,695 iv 1902, or a sum of four millions and a half sterling. ESTIMATED REVENUE AND EXPENDITURE. Estimated Expenditure for 1903-4.-— The expenditure for the present year is estimated at £6,255,857, representing an increase of £41,838 on the expenditure of the previous year. The permanent charges estimated exceed aotual payments of last year by the sum of £19,579, while departmental appropriations show an increase of £31,286. Of the permanent charges, interest and publio debt is answerable for an additional sum of £30,672, but this may reasonably be accounted for as well as the moneys borrowed for letting to local authorities under special Acts.

Estimated Revenue 1903-4.— Turning now to our ways and means for the year, I have, after careful consideration, set down our receipts from revenue proper as £6,468,000. In addition, the revenue will be aided by £60,600, being the proceeds of debentures issued in respeot of the accretions of sinking funds for the current year, thus making the total available ways and means, receipts from all sources, of £6,528,600, or £84,491 more than was received last year. I anticipate tho revenue will be better than that of the previous year by nearly £65,000. The railway revenue is expected to reach £2,000,000, or nearly £17,500 in excess of last year's receipts.

The reading of the Financial Statement occupied two hours and forty-five minutes,

In reply to Sir William Russell, the Premier said if it would suit the convenience of the House he proposed to commence the financial debate on Friday night next.