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THE GENERAL ASSEMBLY.

ME VOGEL'S FINANCIAL STATEMENT. (BYELECTRIC TELEGRAPH.) Wellington, July 29. Mr rose at half-past seven o'clock, in Committee of Supply, to make the financial statement. He was received with loud cheers, and commenced his speech by asking the indulgence of the Committee. After this introduction Mr Yogol began his statement by referring to the existing system of accounts under the Revenue Act. This system had been in force two years' and had failed, except in the more rapid compiling of accounts. It did not properly regulate imprests and advances, nor bring them to account in the year's transactions. For example, in IS6B-9, in addition to votes and £IO,OOO, a special order in Council for Defence, there were £IB,OOO of previous advances and £27,000 of unauthorised expenditure. By the operation of the Public Revenues Act large sums spent in a year would appear by the accounts not to have been spent. The control was a mere farce. The Controller releases large sums which pass to the Paymaster-General, and may be employed as chance or design dictates. The system takes no effectual heed of liabilities. If the Assembly means to control the expenditure it must insist on liabilities not being incurred beyond the votes. The Government propose to forbid liability without special authority. Advances under imprest will be greatly limited and brought to charge within the year. As the accounts have now been ordered to be made up they will show all advances and get rid of the great sham of pretending that money which has left the Treasury has not been spent. The control system will be amended, and there will be no separate account of the Paymaster-General. All payments will be out of one account "and be pre-audited. At present the Controller releases tens of thousands without knowing for a Ion;* time what becomes of the money. The four branches of the public account are nominal divisions. All stand to one account at the Bank, and the Controller and Treasurer are not agreed how much belongs to each branch. If we want to overdraw on one of the accounts we require the bank manager to make a fictitious entry to its credit. Chauges will be proposed enabling the House to judge when and how appropriations are expended, and a Board of Audit will perform the double duty of controlling issues and auditing both revenue aud expenditure. The account of ISOS-9 will comprise expenditure brought to final charge, imprest, advances, and liabilities contracted during the year.

CONSOLIDATION OF LOANS. The Imperial Government have consented to allow sinking funds to be invested in Colonial Securities, as proposed by Mr Vogel in ISG7. Mr Fitzberbert negociated the full amount of £1,111,000 under the Public Debt Act, and £2,72:5,2.30 bonds were converted, of which =£1,100,850 were Colonial and £1,322,-100 Provincial. The present annual charge for interest and sinking fund of the Consolidated Loan is £179,220. According to the Crown agent's calculation the consolidation would, Provincial, be, £537,000 in 23 years, the present value of which is £137.080, less £38,000 expenses. According to Mr Voxel's calculations the profit is this: —The annual saving is £ll,Oßl for 2S years, the present value of which is £165,000 les3 expenses. The actual profit is therefore somewhere between £99,000 and £127,000, after paying expenses of the consolidation, in addition to improved credit, a longer period for the loan, a convenient system of redeeming the debt, and the release of part of accumulated sinking funds. A sum of £SOOO was given to the Crown agents as remuneration. The settlement of accounts with the Imperial Government, by mutual release, was due to the great patience and perseverance of Mr Fitzherbert. ESTIMATED REVENUE OF IS6S-9. The estimates of last year were very accurate. Total estimate —expenditure £1,111,500; actual receipts,£l,oos,933, as follows :—Customs £905,929, bond warehouses £I,GSG, stamps £60,012, Post _ Office £45,561, Telegraph £18,350, miscellaneous items £1,363. The Telegraph Department shows an increase, and new lines will shortly be opened between Wellington and Wanganui, and between Auckland and the Thames. A uniform charge for telegrams will now be made, whatever the distance. The Customs show an

increase, chiefly at Auckland, £63,000, being 50 per cent. Dunedinalso shows a small increase. In decreases Hokitika ia the most prominent, being £31,000, or 30 per cent. The total Customs increase is £10,600. The gold produce decreased on the year 62,000 ounces, but Auckland had increased 66,000 ounces, and in Otago there was a small increase. JSfelson showed a decrease. EXPENDITURE OP 1868-9. Whatever had been said about the sys'em of accounts, it must be remembered that, while there was appropriated £998,525, there was a gross expenditure, including advances unauthorised and refunds, of £1,436,259. Excess, £433,232, of which £375,900 for interest audsinking fund. £179,974, advances of previous year, were brought to account, and £195,007 excess of expenditure for Defence. The actual expenditure was £266,391, besides advances of 1867-S brought to charge. The money really available was £193,951. Bi sides a special order of £IO,OOO, £27,409 were spent without authority. In addition to this the outstanding liabilities for Defence are £89,000. TfIUST FUNDS. Balance at credit on 30th June £242,360, of which £50,000 were invested in consolidated bonds, and £146,000 in Treasury Bills, while the balance was in cash at the bank. Thus trust funds were operated on in aid of expenditure, the Controller holding Treasury Bills, and the Controller therefore decides the extent to which the Trust Fund maybe operated upon. SINKING FUNDS. The Act of last session will be amended to allow a sinking fund on the unconverted portion of the Colony's loan to be invested at Home. These sinking funds will be released from the control of commissioners, but he proposed that an accumulating fund be invested in New Zealand securities. As to Provincial sinking funds, under the present Act, the amounts released are paid to Consolidated Revenue and a corresponding amount written off Provincial liability. The Government disapprove of this, as drifting the Colony into fresh borrowing without the Assembly, being well aware the the alternative is to send over Provincial released sinking funds to the Provinces, which will accordingly be proposed to be done. PROVINCIAL OVERDRAFTS.

These will be regulated. Provinces will be allowed to arrange with their Banks for over-drafts not exceeding one lifth of the previous year's income, the Colony not to be liable and the over-draft at no time to exceed the limit. PROVINCIAL 10AN8. The Government looks forward to more hopeful times. To shut out the hope of public works would be to deny any future to the country, but in the present state of the credit of the Colony and finances it would be unfair to allow fresh liabilities. The condition, however, of some Provinces cannot bo ignored. Marlborough is insolvent; the settlers will not tax themselves to continue their separate Government ; and the Government only sees the course of reuniting it to Nelson. A general Bill will be introduced, allowing friendly negotiations. Southland's condition was not satisfactory, but the Government desires very much to enable it to retrieve itself. Southland will be advised to sell parts of its territory, and unless some unexpected good fortune comes it will have to do that or reunite with Otago. The case of Wellington is also special, borrowing as it is at exorbitant interest, and the state of West-land finance causes the Government anxiety. A Treasury Officer has been sent there to report. LOAN FOR NORTH ISLAND.

The opening of roads is necessary to solve tlie Native difficulty. The revenue cannot afford it, and a loan will be asked, to be charged to the North Island. In order that no reversal of such charge be made the provision to arrange the loan on the North Island is not to lie reversible by less than three-fourths of the votes of the members of the House of Representative?, and the condition will be perfected either by Imperial Act or by order in Privy Council forbidding the Governor to assent to a repeal. The Act authorising the loan will give an alternative power to borrow, with deferred interest of, say, from 5 to 15 years. Such a loan would probably be attractive on account of the vast sums seeking investment for terms of years. The Imperial guarantee will not be asked, but a permissive Act enabling trustees to invest in the loan. The money not to be raised at once, but the Assembly to direct each year what and bow money should be spent. During the present year authority will only be asked for £50,000, and authority will be asked, if found preferable, to raise that sum by Treasury Bills. One member of the Government, however—the member for Mataura (Mr Dillon Bell) —while approving of the policy of road-making, does not concur in the loan being raised. DUTY OX GRAIN AND FLOUR. The Government will propose a small duty, to continue while the price does not exceed a fixed maximum. The duty is estimated to yield about £11,000". The Government does not assert abstract doctrines of either Protection or Free Trade, but proposes the duty because the fiscal policy of Victoria seems.to force this course upon us. FINANCIAL RELATIONS OF THE COLONT AND PROVINCES. The -various, tables presented to Members on tiiis subject will be of

interest. Out of seven Bullions of revenue raised within the provinces since the year 1858, over three millions have passed to colonial purposes and services. In that time £1,400,000 has been spent on General Government services, and the Provinces, for provincial appropriation, have had £2,600,000 (exclusive of laud revenue.) Canterbury and Otago alone have yielded over three millions of revenue in eight years. Eveu Taranaki has given the General Government £57,000. These things should be considered before destroying existing institutions. Two years ago we made a revolution in our financial system, and scarcely a year elapsed before we made another. The partnership between the Colony and the Provinces does not add to the taxation,and the Government will not propose organic changes, for at any rate the partnership makes it the interest of every Province to aid the Central Government in reducing the cost of the services which are prbvincially charged, and an alteration would not promote economy, however otherwise desirable.

PROVISION FOR OUTSTANDING LIABILITIES. Of all the difficulties before the Government, the one of making clear the exact financial state of the Colony is the greatest. Distinct provision will be asked for the two classes of liability. First for services rendered up to 30th June. Secondly for services permanently voted, but the money for which is not available. Looking at the Bank balances on the 30th June, and taking into account the £(10,000 overdraft, there is a deficiency. That is, there is £-44,40S of cash to meet the overdraft of £60,000. The estimates of liabilities of General accounts is £110,231, and one Defence account, so far as it comes in, £69,000, but as there is even yet no precise knowledge about the Defence liability authority •rill be asked for any further amount iklt may be proved due. The liabilities on general account include the new Government House, telegraph extension, lighthouse, aud other services, for which appropriation was made out of the £1,114,000 loan. Southland debts to the extent of £6OOO additional have to be provided for, and there are some liabilities for Provincial charges, hut these will be paid out of the Provincial moiety of the consolidated funds. The total, then, stands thus: —Of outstanding liabilities £89,284, engagements to be fulfilled £07,932, overdraft under revenue account £60,000, making a total of £217,216. To meet which there were at the credit of the Government Bank balances £103,167, (or consolidated and special funds) £6OOO of Treasury bills renewable, £II,OOO old Treasury bills unissued, £12,000 in the hands of Crown agents and other smaller sums, and, lastly, the £150,000 Treasury \ills just authorised. The House may fck why the issue of these bills was necessary with so much money in the Bank. The necessity was clear." There were heavy payments of the current year to be met, such as £70,000 for remittance home, £17,000 of Wellington bonds and other amounts. The available assets may be stated as £282,967, against the £217,216 t© be met, leaving a balance of £65,750 available for (lie current year 1869-70. After paying off all liabilities and the overdraft the assets include all available balances under the permanent loans, and the floating debt (in the shape of Treasury bills) is £378,000.

ESTIMATED EXPENDITURE FOR 1809-70. The Civil list is £17,500, Permanent charges £284,059, ditto :on Provincial account £157,410, Domains £24 SO, Public department £40,890, Law and Justice £51,808, Postal and Telegraph service £134,331, Customs £40,475, Native services £21,407, Miscellaneous, special and temporary. £31,510, Militia and Volunteers ' £27,009, Armed Constabulary £IIB,OOO, Contingent Defence £32,000, making a total of £90*9,587. In postal service the increase is consequent on the cessation of the Panama line, though there is a saving ou the permanent appropriation of £50,000. Miscellaneous expenditure shows a great decrease. By the amalgamation of offices and other measures savings will be effected. last year part of the defence expendifare, as well as many other expenditures, came out of loans and extraordinary revenue. This year the whole expenditure will appear on the estimates, and Government will not advise the House to grant money for Defence to an extent that would involve bankruptcy. WATS a:n"d MEAKS. The existing financial system charges against the Provincial moiety of the consolidated fund a part of the appropriations. The estimates on General Government account are £017,114, and on Provincial account £352,453, for which latter the Provincial moiety provides. The estimated revenue for 1869-70 is as follows: Customs £816,000, bonded warehouses £5,000, Stamps £OO,OOO, Post Office £48,000, Telegraph £95,000, miscellaneous £72,000, making a total of £1,032,000, to which has to be added duty on gold £14,000, making a total of £1,040,000. The Government believes these estimates moderate. One. half of the consolidated revenue will be £523,000. Then there is £50,000, the amount of sinktog fund, that will be realised by conversion of colonial debentures into consolidated stock, and the balance above stated of £65,750, making the aggregate of ways and means £628,750 against expenditure on General Government services of £017,114!, and

thus leaving a surplus of £II,OOO which will be increased by £6,000, further debentures to be charged to Southland, or a total surplus of £17,000, which, it is hoped, will be a more favourable result than the House had expected. As a measure of precaution, since some of the money has to be got at home, authority will be asked to issue Treasury Bills for between £20,000 and £50,000, to be only used in case of need. The proposals here made do not involve organic changes, but will release the Colony from a complicated condition. For the first time provision will be attempted in more than name for the service of the year. Only one liability is provided for, namely, the detention of the 18th Regiment, but this will not come in for payment during 1869-70, and its amount is, of course, uncertain. ANNUITIES AND LIFE ASSURANCES. The Government have cordially taken up Mr Vogel's proposals and will introduce a measure to give it effect. IMJIIG RATION. The Government invite consideration to several conditions on which assisted immigration should be dealt with, and, though they cannot see their way to dealing with the subject this session, they will invite specific proposals for carrying out immigration and settlement in order to lay them before the Assembly next year. It is not for the North Island only that national efforts to promote immigration should be devoted ; they should apply to both islands under a comprehensive plan. It must be remembered that while it is the interest of the Colony to get the best class of immigrants, it is the interest of the Imperial authority to rid the Mother Country of the woi-st. The duty of selfdefence in new settlements and the clear exemption of the Government from compensation risk will bo the leading principles in whatever plans the Government may propose. Mr Vogel concluded his speech by again asking the indulgence of the Committee, and sat down amidst loud cheering.

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https://paperspast.natlib.govt.nz/newspapers/WEST18690731.2.15

Bibliographic details

Westport Times, Volume III, Issue 537, 31 July 1869, Page 2

Word Count
2,696

THE GENERAL ASSEMBLY. Westport Times, Volume III, Issue 537, 31 July 1869, Page 2

THE GENERAL ASSEMBLY. Westport Times, Volume III, Issue 537, 31 July 1869, Page 2

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