FINANCIAL STATEMENT BY THE COLONIAL TREASURER, THE HONORABLE MAJOR ATKINSON Wednesday, 6th July, 1881

Appendix to the Journals of the House of Representatives, 1881 Session I, B-02

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1881. NEW ZEALAND.

FINANCIAL STATEMENT BY THE COLONIAL TREASURER, THE HONORABLE MAJOR ATKINSON Wednesday, 6th July, 1881

Mr. Speaker,— I have before me this evening a much more pleasing and satisfactory task than that which fell to my lot when I last had the honor of addressing you. As, however, the Statement which lam about to make is far more intimately connected than usual with its predecessors, I nmst ask permission to recall to the mind of honorable members the financial position of the colony in November, 1879, and at the close of March, 1880. This is necessary, because our condition in 1879 was so unsatisfactory as to require very vigorous treatment on the part of this House, and it is to the results of the action then taken that I have to call your attention to-night. In November, 1879, I estimated that the Consolidated Eevenue, including the receipts from land sales, for the nine months to 31st March, 1880 —the date proposed for the termination of the financial period then current —would not be sufiicient to meet the expenditure chargeable against it to that date by the sum of £796,886 , and, in confirmation of that opinion, I pointed out that the revenue between the 30th June, 1879, and the time at which I was speaking, had already proved inadequate to meet the expenditure by about £600,000, which sum had been raised by deficiency bills, and these bills it was hopeless to expect to redeem out of current revenue. The causes of this deficiency were not far to seek. It arose chiefly from the great falling off in the sales of land, and from a lavish and rapidly increasing expenditure at a time when New Zealand, in common with the rest of the civilized Avorld, was suffering great commercial depression. But, although the difficulty was serious and embarrassing at the time, a comparison of the revenue of 1878-79 with that of former years, proved conclusively that our receipts from "Taxation" and for "Services rendered" had been steadily and proportionately increasing, year by year, and that the check which we were then experiencing was temporary only This House no sooner understood our real financial position than it took immediate steps to equalize expenditure and revenue. A determination was made to rely no longer upon the proceeds of land sales as ordinary revenue, a vigorous system of retrenchment was initiated, and measures were at once adopted for the imposition of additional taxation to cover the charge for interest, amounting to nearly £300,000 a year, payable upon the new loan and Treasury bills created. As, however, one-half of the financial period of nine months had already passed, it was, of course, impossible to meet such a large and unexpected deficit as £796,886 by means of fresh taxation or retrenchment during that period, especially as every item of revenue was either declining or stationary ; the only course open was to place the amount upon loan, which was accordingly done by passing "The Treasury Bills Act, 1879," in which provision was made for -£800,000. But the actual deficit on the 31st

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March, 1880, instead of £796,886 as estimated, proved to be nearly £200,000 more, and it was found necessary to obtain further aid by the issue of deficiency bills for that amount, which sum, by "The Treasury Bills Act, 1880," was also added to the public debt. It must be remembered, moreover, that this deficit has entailed upon the colony an additional expenditure of at least £50,000 a year for interest, until this sum of £1,000,000 is repaid. THE FINANCIAL PEEIOD, 1879-80. The House will remember the proposal which I made in 1879, that in future the receipts within the year should be dealt with as the revenue of the year, and the payments made within the year as the expenditure of the year It will also be in the recollection of honorable members that it was determined not to apply this new system of keeping the account to the financial period of nine months ending on 31st March, 1880, but that whatever sum might be required to equalize the revenue and expenditure to that date should be provided for out of loan, so that we might start clear of liabilities. In consequence of this determination I estimated, in making the Financial Statement last year, that the liabilities of that period would exhaust the available assets with the exception of £9,918. This, however, has not proved to be the case, for, after discharging all liabilities in respect of the period now being referred to which came in course of payment to 31st March last, there remained a credit balance of £38,555, particulars of which will be found in Table No. 1 attached to this Statement. The deficit, therefore, to 31st March, 1880, was £961,445, being the difference between the credit balance of £38,555 and £1,000,000, the amount of the Treasury and deficiency bills issued in aid of the revenue. EXPENDTTTJEE OP THE OEDINAEY EEVENTTE OE THE YEAE 1880-81. In the Statement which I had the honor to make last year I estimated the cost of the services for the year at £3,423,709, and the amount which would come for payment in the ordinary course of business within the year, at £3,218,709. On the passing of the Estimates these sums were modified to £3,348,889 and £3,123,889 respectively. The actual expenditure was £3,168,183 (Table No. 2), or £44,294 more than I thought would come in course of payment during the year The House will not, however, look upon this fact with disapprobation, but rather, I venture to think, with satisfaction, when I state that it means simply that I took advantage of the opportunity of paying amounts which I had estimated would remain outstanding at the end of the financial year, thus reducing these from £225,000 to £165,514. I may add that the total amount voted for the departmental services of last year, inclusive of Lands and Surveys, was £1,929,807, and the actual expenditure was £1,754,041, or £175,766 less than voted; and if from this we deduct the outstanding liabilities, we find that the services of the year have been performed for rather less than the votes, a result which, considering the searching revision to which the Estimates were subjected by the Committee of Supply, will probably be thought very satisfactory OEDINAEY EEVENTTE OF THE YEAE 1880-81. I now come to the estimated revenue as compared with the actual receipts for the year, full particulars of which will be found in Table No. 3 attached to this Statement. I do not include here the receipts from land sales, of these I will speak presently The estimated revenue was £3,238,000, while the actual receipts amounted to £3,123,961, being £114,039 less .than my estimate. It will be seen upon reference to the table to which I have referred, that the receipts from railways were less than the estimated amount by £111,377, but, notwithstanding this fact, it will be gratifying to the House to know that, through the economical management of my friend the late Minister for Public Works, they have yielded about 3-| per cent, upon the £9,228,000 spent in their construction. The Property-Tax yielded £80,283 less than I had estimated, but of this sum £42,000 had yet to come in, being the amount outstanding and collectable on the 31st March, of the remainder, £20,000 is accounted lor by the alteration of the schedules which was authorized during the session, and £20,000 is an over-estimate.

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I will, however, say no more about the Property-Tax here, as I shall have to speak somewhat fully upon that subject presently Telegraphs also yielded £12,562 less than estimated. On the other hand Customs and Stamps (in the latter I include Land and Deeds) produced more than was estimated * the former by the sum of £57,634, the latter by £10,886. The increase in the Customs and Stamp duties is, I think, a subject for congratulation, as showing that the commercial depression under which we have been suffering is passing away, and that the spending power of the community is gradually resuming its normal condition. LAND FUND OF THE YEAE 1880-81. The estimated expenditure chargeable against the Land Fund was £158,706, exclusive of £51,648, representing one-half of the proposed subsidies to local bodies. Honorable members will doubtless recollect that when it was found impossible, from want of time, to consider the Local Public Works scheme of the Government, it was determined to continue the subsidies at a reduced rate. I then thought that the Land Fund would not bear the whole of these subsidies, but I am glad to say that it has proved quite sufficient for the purpose, I have therefore charged against the Land Fund the full amount paid on this account. The total expenditure, including £110,506 for subsidies, has been £266,793. The estimated revenue from land sales was £200,000, but, through the successful handling of affairs on the West Coast of this Island by my honorable friends the late and present Native Ministers, we have had most satisfactory sales of land in that district, which have brought up the receipts from lands sales to £299,166. The expenditure having been £266,793, leaves a credit balance of £32,373. The liabilities outstanding at the close of the year amounted to £37,561. (Tables Nos. 1, 2, and 3.) THE PUBLIC DEBT. The gross public debt of the colony on 31st March, 1880, amounted to £27,422,611 On 31st March, 1881, it was £29,165,511, or, deducting the accrued Sinking Funds, £2,057,241, the net public debt was £27,108,270. (Table No. 4.) It will be observed, on reference to the Statement I made last year, that the gross amount of the debt on 31st March, 1880, did not include £992,000 Treasury and deficiency bills taken up out of the moneys at credit of the Public Works Fund, or the £800,000 unsold debentures of the loan of 1870 guaranteed by the Imperial Government. As £560,100 of the bills referred to have been disposed of during the year, and advances amounting to £300,000 have been obtained upon security of the debentures, these sums have now to be added to the public debt as on 31st March, 1880. The public debt has further been increased during the year by the conversion of £4,476,000 5 per cent, debentures into £5,371,200 4 per cents, under the option, expired on 16th March last, given to subscribers to the Five Million Loan of 1879. This operation resulted in an increase of the debt by £895,200. Since 31st March, 1880, the following debentures have been redeemed and cancelled Nelson Waterworks Loan of 1864, £6,200, North Otago District Public Works Loan of 1872, £6,200. The net increase of debt during the year, exclusive of the increase by conversion into inscribed stock, was therefore £847,700, but inclusive thereof it was £1,742,900. Adding to the gross debt on 31st March, 1881, the balance of the guaranteed debentures £500,000, and the Treasury bills £431,900, held by the Public Works Fund, the total gross public debt when these securities are disposed of will amount to £30,097,411, or, deducting the Sinking Fund accrued to 31st March, 1881, £2,057,241, the net debt will be £28,040,170, in respect of which the annual charges will amount to about £1,543,000. I may add that, by the conversion of £4,476,000 5 per cent. debentures into £5,371,200 4 per cents., a saving of £8,952 interest per annum has been effected. PUBLIC WOEKS FUND. On 31st March, 1880, the total Ways and Means available, subject to liabilities, was £3,778,173. This sum included—Cash in the colony and in

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London, £862,410; advances in the hands of officers of the Government, £315,763; balance of the Five Million Loan, £751,000; guaranteed debentures of the Immigration and Public Works Loan of 1870, £800,000 ; amount advanced temporarily at interest, £57,000; and advances to the Consolidated Fund upon Treasury and deficiency bills, £992,000. During the past year special receipts and recoveries amounting to £13,174 came to credit of the fund, making, with the balance of £3,778,173 at the beginning of the year, a total of £3,821,347. The expenditure, a summary of which will be found in Table No. 1 appended to this Statement, amounted to £1,960,974, thus leaving an unexpended balance of £1,860,373 at the close of the year The liabilities outstanding on 31st March last, including £997,725 for land purchase, as certified to by the heads of departments, amounted to £1,585,512, particulars of which will be found in Table No. 6. Setting the amount of these liabilities against the unexpended balance of £1,860,373, there remains to be appropriated for new services the small sum of £274,861. But, in arriving at this balance of £274,861, honorable members will observe that £997,725 is set aside as a liability on account of land purchase. Should, however, the policy in reference to such purchases enunciated by the Government be carried out, the sum which it will be necessary to reserve out of the existing balance will not exceed £200,000. The available balance for future appropriation will then be £1,072,586, instead of £274,861, as just stated. FINANCIAL EESULTS OF THE YEAE 1880-81. Honorable members will recollect that it was determined last year that for the future the revenue of the year should be the actual sum paid into the Treasury during the year, and that the expenditure should be the money actually paid away during the year, thus dismissing both assets and liabilities from the Public Accounts; the one being treated as revenue of the succeeding year, and the other being provided for in its votes. I have said that the expenditure within the year was £3,168,183, and the receipts from revenue £3,123,961, exclusive of land sales, but, including the balance of £38,555 brought forward from last year's account, the receipts amounted to £3,162,516, so that upon-this division of the account there was a deficit of £5,667 The expenditure from Land Fund was £266,793, and the receipts £299,167, the surplus upon this account being £32,373. The total expenditure, therefore, of the Consolidated Fund was £3,434,976, and the total revenue £3,461,682, thu3 leaving a surplus balance of £26,706 upon the actual transactions completed within the year. Now, if honorable members will compare the position as just'stated with the state of things in March, 1880, they will at once see that the view taken of the financial position of the colony by the Government has been borne out by facts. I then stated, and gave my reasons for the belief I expressed, that the check we were then suffering was only temporary, and that, notwithstanding the very large deficit which had to be met out of loan, the financial condition was thoroughly sound, requiring only reasonable self-sacrifice and care, and prudence in the management of our affairs, to restore us to renewed prosperity At the close of the financial period ended 31st March, 1880, we had borrowed in aid of the revenue of that period £1,000,000, by way of Treasury bills, after closing the accounts of the year ended 31st March, 1881, we can see our way to provide out of ordinary revenue for the liabilities outstanding at that date, with every prospect of a fair margin of receipts in excess of expenditure at the end of the year; and this notwithstanding the fact that the interest we have to pay has been increased by some £300,000 a year LOCAL FINANCE. I now come, Mr. Speaker, to the consideration of that difficult problem, " Local Finance" a problem difficult of solution chiefly because of the restless pushing energy which still demands more local works to open up the country; and this notwithstanding the fact that we have already borrowed so largely for these purposes that we are compelled in our general taxation to trench somewhat

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upon the funds which we should like to see left free to supply local wants; while at the same time it seems to be entirely forgotten that the localities themselves have largely benefited by the Public Works scheme, and that by the construction of railways, roads, and bridges at the charge of the colony, they have been permanently relieved of much expenditure. It is, indeed, quite certain that if we are to people the Avaste lands and make the country progress, as we have determined it shall progress, we must find the means not only to keep in proper repair our roads and bridges already constructed, but also to extend our road system throughout the colony step by step with advancing settlement. I propose to-night to speak only in relation to the financial aspect of the question, without reference to the organization or powers of the local bodies : of these I shall speak at large at an early date. I now take it for granted that the local bodies will be charged with the duty of making and maintaining the roads within their jurisdiction, and that upon these works the bulk of their expenditure will be made. The local bodies have other duties to perform, but, if that part of the problem relating to roads and bridges can be satisfactorily solved, the rest will follow without much difficulty This, then, is the great question for solution how are funds to be provided for the construction and maintenance of our roads and bridges ? And the question naturally divides itself into two branches first, maintenance; and second, construction. But, before proceeding further, let me say what, in my opinion, are the requisites of a sound local finance. These are, that local finance should be as distinct from and independent of our general finance as possible, and that the funds should be sufficient. MAINTENANCE OF EOADS AND BBIDQES. First, then, let us consider the means at our disposal for the maintenance of roads and bridges already constructed. With very little consideration, it will be evident, I think, to every one, that our roads and bridges must be maintained for the future, with perhaps one or two exceptions, by local rates. The landed property in each district must, as a rule, maintain the roads and bridges of the district. This being so, it is evident that all land must pay rates. The Government therefore propose that Crown lands and Native lands shall be rated, with certain exceptions, with which I need not now trouble the House. This proposal is the same as that which I had the honor to submit last year, with one or two important alterations. The proposal is shortly this . that, within boroughs, the property of the Crown, with certain exceptions, and of Maoris, shall, for the future, be rated under " The Hating Act, 1876," the Maoris being in this case placed on the same footing as European holders of town property; and that country lands, both Crown and Native, shall be divided into two classes, agricultural and pastoral, and shall be rated at £1 an acre for agricultural land, and 6s. Bd. an acre for pastoral land, which amounts, for rating purposes, will be taken as the value of the fee-simple. Honorable members will observe that, while last year it was proposed to estimate Native land at one-half the value of Crown land, it is now proposed to value them alike ; and I cannot but believe that, upon consideriag all the circumstances of the case, the House will think this fair and reasonable. If the Crown and Native lands are to pay rates, the question arises : who is to be responsible for their payment to the local bodies, and out of what funds are they to be paid ? We propose in every case that the Colonial Treasurer shall be primarily liable, and shall pay the rates to the local bodies. The rates on Crown property within boroughs we propose to charge against the Consolidated Fund , the rates on country Crown lands against the Land Fund ; and the rates on country Native lands we propose to advance out of money appropriated by Parliament for the purpose, but to remain a charge against the Native land for which the rates are paid, and to be recovered without interest, as a duty under the Stamp Act, from the first purchaser or lessee of the land so charged. With regard to making the rates to be paid upon Crown property within boroughs a charge against the Consolidated Fund, I think all sides will agree that these rates are a proper charge against that fund. In respect to the rates upon country Crown lands, I hope it will need no argument to prove that they should be a charge against the Land Fund. Having determined that the land shall maintain the roads, there can be no reason to make an exception in favour of

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the estates of the Crown, and it is from the proceeds of this estate that we propose to make the payment in charging the rates against the Land Fund. The proposal, however, to advance rates upon Native lands will require some explanation. As a matter of strict justice, there is no reason why our Maori fellowsubjects should not pay their share of the cost of local works, which, as they are undertaken and completed, improve their lands in common with the lands of their European neighbours. But, although this might not unfairly be insisted upon, there are reasons which will, I hope, induce this House to make such provision as will, without unduly pressing upon the Maoris, deal fairly with the local bodies who are charged with the maintenance of roads passing through Native lands within their jurisdiction. The reasons are chiefly those of public policy It would be a great mistake on our part, especially now that our relations with the Natives have so greatly improved, to make demands which large numbers of them could only meet with great difficulty, if at all. The Maoris will, I think, at once recognize the fact that the time has arrived when we may reasonably ask them to charge their lands with rates for local works which greatly enhance the value of those lands, the rates, without interest, to be payable only by Europeans when such lands are parted with to Europeans. I shall propose, if the House agrees to this plan, to charge these rates in the first place against the Consolidated Fund. Before leaving this part of the question, there are two other important matters to which I must refer —the limitation of self-rating to one shilling in the pound, and the cost of the yearly valuation. It is, Sir, well known that in some parts of the colony a shilling rate is insufficient to maintain the roads. The Government are unable to see upon what grounds of either reason or justice the local bodies can be called upon to maintain the roads, while at the same time they are denied the power of raising enough money for that purpose. We shall therefore propose to increase the rating power to two shillings in the pound,—a power already possessed by several of the local bodies, —believing that that limit will be approved by the country, and be found ample for the duty imposed. With regard to the valuations, experience has shown that they are required by law to be made much oftener than is necessary, thereby causing the local bodies a large and useless expenditure. The Government propose to relieve the local bodies entirely of this charge, and so save them from an unprofitable expenditure of probably not less than £16,000 a year We shall ask the House to permit all local bodies to use for rating purposes the valuation under the Property Assessment Act, with annual correction. I have had a Table prepared (No. 10), showing the valuations under the Act as compared with the valuations made by the local bodies, and, when honorable members compare the two valuations, the totals of which are remarkably near, the proposition will, I think, commend itself to their judgment. CONSTRUCTION OE EOADS AND BEIDGES. And this brings me, Mr Speaker, to the second branch of my subject, the construction of roads and bridges. Now, there are three distinct classes of roads with which we have to deal under this branch of our subject first, there are the main roads through Crown lands not yet settled, second, the main roads running through the settled or partially-settled districts ; and third, district roads both in settled and unsettled districts. We will first consider the question of how money is to be provided for roads through Crown lands not yet settled. My colleague, the Minister of Lands, has given much attention to this subject during the recess. He has, by means of roads cleared and formed, with sufficient culverts to make them passable, opened a large quantity of land for settlement; and he will this year submit a scheme involving the expenditure for this purpose of £150,000 out of loan; the expenditure to extend over a period of three years, at the rate of £50,000 a year. This work, Avherever practicable, will be done as hitherto by the local bodies. But every one acquainted with the country must know that these provisional roads are only the beginning of a necessary work, and that settlement of small blocks of land cannot be successful without good roads. As a matter of sound policy, a good road, if it does not precede, ought certainly to immediately follow, settlement.

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Now, there are only three ways in which money for this purpose can be obtained: it must be got either from the proceeds of the land, or from loan, or from both these sources. After carefully considering the subject, the Government have come to the conclusion that the necessary funds can be obtained from the land itself, not only without injury but with advantage to settlement. We propose, therefore, that, after the land has been surveyed and the roads marked out, an estimate of the cost of forming and metalling the main road through the block shall be prepared by the local body having charge of the district, that to the fixed upset price per acre of land to be served by the road shall be added a sum, according to situation, sufficient to cover the cost of construction, and that the money so obtained shall be set apart and paid over to the local body, under proper safeguards, to be used for that purpose only. And we further propose that, when half the land in any block is sold, the Government shall advance the money to complete the main road through the block, recouping itself from time to time as the rest of the land is sold. We now come to the roads of the second class those unconstructed main roads running through settled or partially-settled districts. Our proposals in respect to these are in substance the same as last year, but the machinery of the Boads Construction Bill, by which it is proposed to give effect to the scheme, is, I hope, an improvement upon that of the Local Public Works Bill of last session. The constitution of the Board, which Avas objected to by many honorable members, has been altered, and it is now proposed that it shall consist of the Minister for Public Works, and three members to be appointed by this House. In order to provide for this necessary work, I shall ask the House to make a grant to the Board of £150,000 out of loan, and to cause to be paid over to it yearly a further sum not exceeding £150,000 out of the balance of the Land Fund. This fund will be applied in the following manner Suppose a local body desires to construct a piece of main road or build a bridge, which we will say is to cost £1,000, it will prepare estimates showing the cost of the proposed Avork, and submit them to the Board, and ascertain if there is money available; if there is money available, the local body will, after taking an affirmative vote of the ratepayers, strike such a special rate OA rer that part of the district benefited by the proposed work, including Government and Native lands, if any, as will in ten years repay, without interest, one-quarter of the amount obtained from the Boads Construction Board. In the case supposed of the work costing £1,000, the Board Avould have to strike a special rate which would produce £25 a year, or £250 in ten years; or, if the local body had £250 in hand which it could apply to the proposed work, or chose to first raise the money by general rate, it could then obtain from the Boads Construction Board £750> the balance of the £1,000 estimated to complete the work. In other words, for the purpose of main-road construction, for every pound which the district finds, three pounds is added from the Land Fund. In case more money should be applied for than the Board has at its command, grants pro rata would be made, but all applications in cases where a main road or bridge had been destroyed or Avashed away by a flood would take precedence. We have now only to consider the third class of road, that is, district roads. To enable Road Boards to make these district roads, Ave propose to ask the House to make a free grant of £100,000 to the Boads Construction Board, and to permit it to borrow another £100,000 at 5 per cent, from the Trust Funds, thus making a fund of £200,000 available for this purpose. We propose that this fund should be self-supporting, and that it should be dealt with in this way Suppose a Boad Board Avishes to borrow £100 for a small bridge or other Avork, it would submit an estimate of the proposed Avork to the Boads Construction Board, on ascertaining that there was money available, and, after taking an affirmative vote of" the ratepayers, the Boad Board would strike a special rate which would produce £9 a year for thirteen and a half years. The produce of this rate would be paid over to the Board half-yearly, and by the expiration of the period I have named the whole of the amount borrowed, with interest at 3 per cent, per annum, Avould be repaid.

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So far I have only been dealing with Counties and Boad Boards. As will have been observed by honorable members, my proposals do not affect the Boroughs, except to the extent of granting them power of rating all Government property Avithin their boundaries. I think, with every desire to help the Boroughs, we must recognize the fact that the surest and most effectual method of helping them is to encourage successful settlement upon the land. With a well-roaded and prosperous country the difficulties of the Boroughs w*ill end. In the above proposals I conceive that Ave are, in fact, carrying out the idea of the Legislature in withdrawing the 20 per cent, of the produce of land sales from appropriation by the County Councils. That fund w Tas meant to be devoted to the opening out of the very districts from which it arose. Unfortunately, the Councils (following suit to the Legislature itself) had treated it as ordinary revenue, applicable to any of the objects under their control and administration, using it, in effect, to lighten local rates, or dispense with them altogether The result of the proposals I have just submitted Avill not then be to reduce the proportion of the Land Fund locally expended, but in most cases, and for some time to come, to increase it materially , but it will be expended under such safeguards as will insure its application to the colonizing uses to which this House desired to devote it. I think the warmest advocate of the localization of the Land Fund can desire no more. Before quitting this branch of my subject I will deal shortly Avith the suggestion that the Government should take over and maintain the main roads of the colony, a proposition which goes far beyond the centralizing tendencies sometimes imputed to the present Government. We are not ambitious to take charge of some thousands of miles of roads, and do not feel ourselves competent to the task. The House will certainly not appropriate the needful funds out of ordinary revenue, nor will it invite an annual repetition on its floor, and on a petty scale, of the struggles for local appropriations which have impaired the success of the Public Works policy In the face of the complaints which are already abroad of the concurrent rating poAvers of County Councils and Boad Boards, the House is not likely to undertake itself the duties of a third rating authority, nor can it, in the present condition of the general finance, abandon any part of the proceeds of the Pro-perty-Tax to local administration. Such, then, Mr Speaker, is a brief sketch of the proposals of the Government with regard to local finance. It may be said that there is nothing very new or startling about this scheme, and that, Sir, may be true, but the question is, is it a plain workable scheme, easily understood, and will it give us what we must have, as rapidly as our means will permit, roads throughout the country ? I submit, Sir, with confidence, that it Avill, and that it will also relieve both this House and Ministers from pressure to supply local Avants which cannot be ignored if settlement is to advance, but which it is very undesirable should be dealt with directly by this House. I do not, to-night, intend to trouble the House with elaborate arguments in support of it, because I believe honorable members desire, upon such an occasion as this, only a broad outline, to enable them to judge of the effects of the proposal upon general and local finance. That the scheme, if it becomes law, will make our local finance as distinct from and independent of our general finance as possible cannot, I think, be doubted, and that it will make as ample provision for the local bodies as our means now permit is, I think, also certain. It has also this great advantage, that, should it prove successful, it can be expanded Avithout difficulty to meet all the future Avants of the country, and is equally suitable to our local bodies whether Ave enlarge them and multiply their functions or keep them much as they are. ESTIMATED EXPENDITURE FEOM ORDINARY REVENUE, 1881-82. I now come, Mr. Speaker, to the consideration of the estimated expenditure for the current year. It will be within the recollection of honorable members that last year the Government, with the assistance of the Committee of the House, made very large reductions in the Estimates as sent down, and that, after these reductions had been made, I stated to the Committee that the net results for the year amounted

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to £197,000, and that, if the Government succeeded in carrying out the retrenchments it had in view, the Estimates for the annual appropriations for this year would be £252,000 less than those for 1880-81 as introduced last year lam happy to say that my anticipations in this respect have been more than realized. The estimates as brought down last year for the twelve classes of services—under the control respectively of the Speakers of both Houses, the Colonial Secretary, the Colonial Treasurer, the Minister of Justice, the Postmaster-General and Commissioner of Telegraphs, the Commissioner of Customs, the Commissioner of Stamps, the Minister of Education, the Minister of Native Affairs, the Minister of Mines, the Minister for Public Works, and the Minister of Defence —amounted to £2,108,613, full particulars of which will be found in Table No. 7 attached to this Statement. The estimates for the same services are, for this year, £1,774,612 only, or, in other words, £334,001 less than those of last year. Honorable members will see, upon reference to the table, that upon eA rery class, without exception, there is a reduction, and that in Class XL, that of the Minister for Public Works, there is a reduction of £53,491, notwithstanding the fact that the estimates for the current year are for an average mileage of ninetythree miles greater than was worked during the past year, and that ample provision is made for their efficient working and maintenance. I should not, perhaps, include in this sum the item £52,500 for Contingent Defence, which has been removed from the Estimates, this being one of those cases in which it may be said that no reduction of expenditure had been made, because the item was placed on last year's Estimates to provide for a contingency merely * but I think we may in fairness claim to include the amount, in consideration of the fact that our being able to dispense with the item is due to better prospects of continued amicable relations with the Natives. Such a result, then, as the reduction of £281,501, or, including £52,500 for Contingent Defence, £334,001, in twelve classes of the Estimates, in one year, is a work upon which I think I am fairly entitled to congratulate the House. These reductions have not been accomplished without much hard work and painful thought, and could certainly never have been made at all but for the hearty co-operation of the Committee of Supply and the House with the Government in effecting these necessary economies. The total proposed votes for the year inclusive of liabilities, which uoav appear in the ordinary votes, is £3,270,531 (Table No. 8), divisible into two parts Permanent Charges, amounting to £1,570,919, and Annual Appropriations, amounting to £1,699,612 , in which latter division alone can reductions be made at present. As I have said, great reductions have been made under this division during the past year , but, notwithstanding this fact, the Government believe that they can during the present year effect still further reductions. I cannot, however, do more on the present occasion than point out that the line in which the Government is moving is in the direction of the simplification of the services, the consolidation of offices, and, consequently, the diminution of the number of employes. There are, I think, no special items of expenditure to which I need call the attention of the House, except that the item of Interest and Sinking Fund has increased by £46,157, while that of Constabulary has decreased (including the sum of £52,500 for Contingent Defence already referred to) by about £113,000, through the steady reductions the Government haA re been enabled to make in this force in consequence of our improved relations with the Maoris. This fact will, lam sure, be heard by every honorable member with great satisfaction. ESTIMATED EXPENDITUEE FEOM THE LAND FUND, 1881-82. I ought, Sir, perhaps to have said before this that, in speaking of the ordinary revenue, I have not included the proceeds of land sales. If the scheme which I have submitted for the consideration of this House should be adopted, the Government will propose that any balance there may be left from land sales, after payment of the charges it is intended to place upon them, shall by law* be paid into the Public Works Fund, but without prejudice to the public creditor. The estimated expenditure chargeable against land sales is as follows, as honorable members will see upon reference to Table No. 9 : for Charges fixed by Acts of the General Assembly, £84,966, for the Crown Lands and Survey II.—B. 2.

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Departments, £134,584, for rates to local bodies, £27,000, for Boads and Bridges, a sum not exceeding £150,000, to be paid to the Boads Construction Board ; the balance, if any, after payment of these charges, to be paid over to the Public Works Fund. PEOPEETY-TAX. I will noAV, Mr. Speaker, in accordance with the promise made in the early part of this Statement, again refer to the Property-Tax. The Act, Sir, although requiring some amendment, has been found, upon the whole, effective, and, now that its provisions are generally understood, it is admitted throughout the colony that ihe tax is thoroughly fair in principle, and that it has, generally, Avorked satisfactorily Ido not mean, Sir, to imply by this that direct taxation is palatable; but I venture to say that in no country in the world has direct taxation been accepted more willingly, or paid more readily, than the Property-Tax has been by the people of New Zealand. I have had prepared, for the information of the House, several very interesting Tables (No. 10), which will, I think, greatly increase our knowledge with regard to the distribution of wealth, and especially in reference to the ownership of land. There are, I find, 21,761 freeholders within boroughs, and 43,058 freeholders of country land. The total number of freeholders in the colony is 60,658; being somewhat less than the aggregate of freeholders of borough and country lands, because some owners of property hold land under both designations. It is, perhaps, desirable that I should give the House, at this' point, some particulars as to the cost of collecting the tax. The total expenditure made for last year, including outstanding liabilities, but exclusive of Land-Tax charges, was £31,000, being made up of the following items cost of valuation, £16,000, salaries, £7,275; preparing tables, £700, miscellaneous, including cost of collection, £7,025. With regard to the valuation, I find it has cost about £3,000 more than the Land-Tax valuation, the \ xaluation under the latter being £13,000, and under the Property Assessment Act £16,000, but if the proposals of the Government are agreed to, and this valuation is used by the local bodies as the basis for their rating, the whole of the cost of this assessment Avill be saved to the country during the next year, the saA'ing going into the coffers of the local bodies. In fact, Sir, if Ave make one triennial valuation do for both general and local purposes, the cost of it will be so small as not to amount to 1 per cent, upon the rates and taxes collected. If this suggestion should be accepted, it would not be fair to charge more than £5,000 per annum for the cost of valuation against the Property-Tax for the three years during wdiich the valuation continues in force. But, admitting that the whole of the introductory expenses and the triennial valuation are to be charged against the PropertyTax, even then the rate per cent, for levying and collecting the tax, supposing it to be continued at the rate of one penny in the pound for three years, Avill be very moderate. The estimated cost of the Property-Tax Department for the next two years is £12,000 For this year I shall ask for £6,000, exclusive of liabilities, so that the total cost for three years will not, I think, exceed £44,000, and the total receipts for that period, provided the present rate of one penny in the pound be continued, Avill certainly reach £860,000, thus making the total cost of the tax a little over 5 per cent, upon the amount actually paid into the Treasury And, if a proportionate deduction is made from the triennial valuation on account of the use made of it by the local bodies, it will be seen that the Property-Tax can be collected for less than 4 per cent., a result with which, I think, we may be well satisfied. Of course any alteration in the rate of the tax will necessarily increase or diminish, as the case may be, the relative cost of collection. When the Property-Tax was first imposed a strong fear, perhaps not unnaturally, w ras expressed by many persons that one of the effects of the tax would be to drive away foreign capital seeking investment in this colony. I have consulted gentlemen from all parts of the colony who are authorities upon this subject, and I have not found one who entertains the opinion that the Property-Tax has had any appreciable effect upon the flow of capital to the colony, and, as a matter of fact, during few periods of our history has more foreign capital come into the country and found investments than during the last year at an equally low rate.

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EEVENUE FOE THE YEAR 1881-82. Before, Sir, I proceed to the consideration of the estimated revenue for the current year, I desire, with the permission of the House, to refer to one or two important questions which are doubtless occupying the minds of honorable members. And the first which presents itself to most of us is, I think. Will it be necessary to impose fresh taxation this year? I am happy to be able to inform the House that I can answer that question with an emphatic negative. And then, Sir, that question having been answered satisfactorily, comes its fellow * Can taxation be reduced this year ? The answer must depend on the view the House may adopt of the action to be taken in the early future towards completing the great arterial communications of the colony The Government, after the past year's study of the condition of the country under circumstances of exceptional depression, have decided to assume that the Legislature Avill require the finance to be shaped in the sense of continuing its great undertakings. The experience of the past Avill enable us to do this on a surer basis of calculation than hitherto. The general reasonableness of the expectations, as well as the dangers of the policy of 1870, is fully exposed in the revenue returns and trade and population statistics of the last ten years, and these justify me in recommending that, Avhilst avoiding what I will call high-pressure finance, we should arrange for the construction of all the defective links in the trunk lines of railway, necessarily at a reduced speed, but without intermission. 'While this recommendation forbids us to propose any very imposing reduction of taxation, it need not prevent us diminishing, to an appreciable amount, our demand on the taxpayer Beturning to the Property-Tax, it will be in the recollection of honorable members that, when the Act was passed, it was determined, on grounds of public policy, not to include foreign capital as liable to taxation. On a fuller consideration, the Government have determined to ask the Legislature to bring this excluded capital Avithin the Act this year We shall, therefore, shortly ask leave to introduce a Bill to amend the Property Assessment Act in the direction indicated, and for the purpose of correcting some faults and unfairnesses which have appeared in the working of the Act. Should the Act be amended as proposed, I estimate that the taxable property under it will be increased by no less than £11,000,000, of which estimate particulars will be furnished when the Bill is under consideration. This amount, at Id. in the pound, AA rould yield, say £45,000, and in the present condition of the revenue will enable us to propose, first, a reduction in the Customs duties, and, second, a diminution of the Property-Tax. We propose to admit free of duty, calicoes, Avhite and grey, moleskins, corduroy, colored cotton shirting (all in the piece); axes, spades, and shovels, and to admit free or reduce the duties on a variety of other articles which I need not now detain the House to enumerate— all these remissions and reductions tending to encourage local manufactures. With respect to the Property-Tax we shall ask for the continuance of the present penny rate till September next, to be reduced after that date to one half-penny for the remainder of the year. ORDINARY REVENUE. We have, now, Mr Speaker, to consider on the above basis the Ways and Means for the current year. I estimate that the total receipts of the year, from all sources, in the ordinary Revenue Account, Avill amount to £3,297,650, full particulars of which honorable members will find in Table No. 8 attached to this Statement. Of this, £1,826,000 is to be raised by taxation, and £1,471,650 is receivable for services rendered, &c. Speaking then, first, of the amount raised by taxation, we find that the Customs duties last year yielded £1,307,635 , this year I have estimated them at £1,360,000, or at an increase of about £53,000, which, considering the steady and satisfactory improvement in. the circumstances of the colony, will, I think, be fully realized, but from this amount it will be necessary to deduct £15,000, if the remissions Avhich I have just suggested are agreed to, thus leaving the Customs duties for the year at £1,345,000. The Property-Tax I have estimated to yield £270,000, upon the supposition

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XII

that the amending Bill of which I have spoken becomes law But, of this amount, £42,000 represents that portion of last year's tax which remained uncollected on the 31st March last, so that the tax is estimated to yield this year £228,000. When first proposed, it was estimated that the Beer-Tax at sixpence per gallon would yield £100,000, and when the duty of threepence per gallon was imposed, I estimated it to produce £60,000 a year the actual receipts for the ten months in which the Act was in operation during last year was at a rather less rate than the estimate, but I think we may not unreasonably expect to receive from Beer Duty £60,000, I have therefore estimated to receive that amount during the year With regard to the Stamp Duties, I estimate they will produce £150,000, if the Deceased Persons' Estates Duties Bill becomes law. This Bill is substantially the same as the one which passed this House last session, and was thrown out in another place. I hope it may become law this session, as the Bill is a great improvement upon the present laAV, and the duties charged under it are certainly moderate. There is not, I think, a more legitimate tax imposed than that upon property at the death of its OAvner The Bill as it passed last session would have increased the revenue by about £10,000 a year, but as now proposed, the increase to the revenue is not estimated at more than £5,000. There is, I think, only one item in the revenue estimated to be received for services rendered calling for special remark, and that is the Bailways. I have estimated the receipts from the railways for this year at £910,000 the actual receipts for last year were £838,622, and, as we have now about ninety-three more miles open for traffic, and prosperity is steadily returning, the estimate may, I think, be considered not excessive. There is no other item of revenue to which I need call the attention of the House. I have said that the estimated expenditure to be made within the year —and honorable members will understand that this noAv includes outstanding liabilities— is £3,270,532, to which I add the deficit at the end of last year £5,667, making a total of £3,276,199, and that the estimated revenue is £3,297,650. Deducting, then, the estimated expenditure from the estimated revenue we have a surplus of £21,451, a result, Sir, which, if attained, will I think be extremely satisfactory, as shoAving the steady progress of the colony and the wonderful elasticity of our own resources. LAND FUND. The receipts from the sales of land are estimated at £333,000. My honorable friend the Minister of Lands has given great attention to the subject of selling land by small holdings, and has opened blocks of land for settlement upon this principle throughout the colony with marked success during the year, and, if the proposals of the Government are agreed to with regard to road making, I have no doubt that still more settlement will take place during the current year, and that it is probable that my estimate of £333,000 may prove to be exceeded, but if it should, it will not, under our proposals, be absorbed in the ordinary charges of Government, but be set apart for public Avorks only Adding, then, the balance at credit of the Land Fund on 31st March, £32,373, to the estimated receipts from land sales, we get a total of £365,373, and deducting therefrom the expenditure, £246,551, there remains a surplus of £118,822, Avhich will be payable under our proposals to the Boads Construction Board. I will, now, Mr Speaker, with the permission of the House, ask the attention of honorable members to a subject which has been floating in the minds of many people in a more or less definite shape for some time past. The feeling has been gradually growing of late years, not only here but in the Australian Colonies, that the several Governments might, with great advantage to the community, give some further facilities for the investment of local capital in small amounts than is afforded by the Post Office Savings Bank. That institution has been a great success, in putting within the reach of thrifty people a place for the safe keeping of small savings, and it is satisfactory to know that, notAvithstanding the hard times we have had for the last eighteen months, the deposits have steadily increased. It is also a gratifying fact, well w rorthy of note, that no less than fivesixths of the deposits are for sums of less than £50. The Government think it

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possible that many of these depositors, as well as the public generally, might be glad of a more permanent form of investment, if one can be provided which is at the same time secure and easily convertible into cash. I shall therefore submit, for the consideration of the House, a Bill authorizing the issue at par of a loan of £250,000, the principal and interest of which will be payable in New Zealand only. I propose that the loan shall bear interest at a rate not exceeding 5 per cent., and that it shall be issued in the form of Inscribed Stock, with the right to the subscriber to obtain from time to time bonds payable to bearer of ten pounds and upwards. The advantages of such a form of investment will doubtless require some time to be generally understood, but if a local market can be once created, as I think it may be with judicious management, the stock would be found a great public convenience as a means of temporary as well as of more permanent investment. It is possible, Sir, that the time for such a 5 per cent, stock has not arrived, and if so, the proposal will fall to the ground, and we shall have learned, at any rate negatively, something about our power of obtaining money locally. The time for making the experiment is very opportune, because the money market is easy and Ave are not dependent for money upon its success. The Government, Sir, do not propose in any Avay to force this loan, recognizing that with the object in view — that of supplying a local want —the time necessary for the proposal to be understood by a wide class must be allowed ; but they think the offer should be made, and they will use all serious endeavours to familiarize the public mind with its nature. The proceeds of the loan it is proposed to use for public works : authority will therefore be asked to pay them into the Public Works Fund, to be dealt with in due course by Parliament. Before concluding, it may be desirable, Mr. Speaker, to glance briefly at the progress of the colony since 1870, and to compare it with that of our great neighbours in these seas. The population in 1870 was 248,400: it is now 489,700 — that is, it lias almost doubled in ten years; and what, Sir, have our two poAverful and attractive neighbours, Victoria and New South Wales, done during the same period ? In 1870 the population of Victoria was 726,599; of New South Wales 502,861. It is now 858,582 and 750,000 respectively; thus showing* an increase in the Victorian population of 18 per cent.; and in that of New South Wales of 49 per cent.; Avhile in New Zealand the increase has been 97 per cent. Then, Sir, let us look at the value of our imports and exports. In 1870 thev Avere respectively £4,689,015 and £4,822,726 Last year—that is, for the year*lBBo—they were: Imports, £6,162,011; exports, £6,352,692; showing an increase in imports of £1,522,996, and in exports of £1,529,936, a not unsatisfactory result when the universal commercial depression of the year 1880 is remembered. And, lastly, let me compare the net revenue of 1870-71, exclusive of land sales and the revenue appropriated to local bodies, with that of 1880-81. In the former year it was £1,057,218, in the latter £3,123,960, a difference, Sir, which is ample to cover all the additional interest we have to pay.and with a good margin to spare, to provide for the increased cost of Government. It may however be said that this increased income does not arise from natural growth, but from the far heavier taxation under which the country now labours than it did in 1870. But is this so; are Ave in truth more heavily taxed now than we were in 1870 ? I venture to think we are not taxed now more than in 1870. The taxation per head then was £3 4s. 6d., it is now £3 lis. 9d.; but education is now paid for by the State, —an additional charge since 1870 ; if, therefore, the rate per head of the cost of education, 9s. 9d., is deducted from the taxation of 1880-81, we find that it is less now* by 2s. 6d. than it was in 1870. For these and other reasons, Sir, we may claim that our Immigration and Public Works scheme has been fairly successful. Had, however, the purposes, of the loans of the period been more precisely defined, and more strictly adhered to; had the amount of those loans been limited as originally proposed, and had economy prevailed from first to last, we should have been able now to affirm, without fear of contradiction, that they had been an eminent success. With the clear view Avhich is now open of the dangers we have escaped, and of their sources, the Legislature may, if it is resolute, make the future operations more thoroughly in.—B. 2.

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matters of business. "With that resolve, it will define and fix with all exactness the objects of future loans, and determine their amounts not by the flush of the revenues of the most prosperous years, but by the reliable averages of a considerable period. It has other considerable advantages for the work. The abolition of the provincial system has placed more administrative experience at the service of the colony at large, and the generalization of the Land Fund makes the produce of land sales wholly available for the greater and lesser public works, whilst we start with a steadily increasing revenue from the railways already constructed, which is an unimpeachable basis for our continued operations. The spontaneous immigration to these shores, and the natural increase of the present population, with the extension of the manufactures already planted, not to speak of others which will spring up of themselves, must alone insure a growth of revenue adequate to support the charges of the moderate loans necessary for our purpose. And we should ill appreciate the blessings of our climate and soil, if we did not confidently anticipate the birth of other most important rural industries under the advantages which our daily improving system of communication affords, and by means of the capital which continually flows to our land by an attraction as certain as that of gravitation itseli'. And there is another consideration—one of mere justice- which should decide un to do all that prudence will allow to complete our arterial system. I mean the claims of those districts which have patiently awaited the fulfilment of the pledge of the Legislature in the Schedule of the Act of 1870. It is not yet the time, nor is it my place, to submit a specific proposal for carrying out the work I have here suggested; but I trust the House will agree with, the Government in this opinion, that the finance of the colony should be so shaped as to make a definitive proposition practicable on the meeting of the next Parliament. In conclu sion, I must warmly thank honorable members for the patient attention with which they have listened to my Statement. The circumstances of the times have not permitted me to offer proposals which can excite much enthusiasm, but I believe they are of a practical nature resting upon a solid basis, and such as will reassure the country and enable it to look forward to the future with sober confidence.

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TABLES REFERRED TO IN THE FOREGOING STATEMENT.

Page Table No. I.—Abstract op the Bx.Kn._s and Expenditure op the Public Account ... - ... ... 2-8 Table No. 2. —Statement op the Estimated and Actual Expenditure op the Consolidated Eund, including the estimated liabilities on 31st march, 1881 ... ... ... 9 Table No. 3.—Comparative Statement op the Estimated and Actual Eeceipts op the Consolidated Fund ... ... ... ~, ... ... ... ~. ... ... 10 Table No. 4.—The Public Debt ... ... ... ... ... ... ...11, 12 Table No. s.—Statement op the Total Wats and Means and Total Net Expenditure of the Public Works Eund to the 31st March, 1881 ... ... ... ... ... ... 13 Table No. 6.—Statement op the Estimated Liabilities of the Public Works Fund on 31st March, 1881 ... ... ... ... ... ... ... ... ... ... 14 Table No. 7.—Comparative Statement op the Estimates por 1880-81 and 1881-82, Ordinary Revenue Account, Consolidated Fund ... ... ... ... ... ... ... 14 Table No. 8. —Statement op the Estimated Receipts and Expenditure op the Ordinary Revenue Account of the Consolidated Fund por 1881-82 ... ... ... ... ... 15 Table No. 9.—Statement op the Estimated Eeceipts and Expenditure of the Land Fund Account tor 1881-82 16 Table No. 10. —Property-Tax Statistics ... ... ... ... ... ... ... ... 17-20

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Table STATEMENT of the Receipts and Expenditure of the ORDINARY REVENUE

RECEIPTS. FINANCIAL PERIOD 1879-80. Balance on 31st March, 1880,— Cash in the Public Account Advances in the hands of Officers of the Q-overnment... £ s. d. £ s. d. £ s. d. 94,892 16 3 197,171 7 6 292,064 3 9 Assets realized, — Revenue, — Land-Tax Postal Telegraphic ... Miscellaneous 56,428 5 9 55 0 0 27 10 0 254 9 2 Miscellaneous Recoveries Bills Receivable, — Instalments on account of Sale of Reclaimed Land and Supreme Court Site, Welllington ... 56,765 4 11 15,146 6 2 15,097 12 0 87,009 3 1 FINANCIAL TEAE 1880-81. £379,073 6 10 Balance from the Financial Period 1879-80 Ordinary Revenue, — . Raised by Taxation,- — Customs ... ... ... £1.307,634 19 3 Stamps ... ... ... '142,803 8 4 Beer Duty ... ... ... 45,986 19 8 Property-Tax ... ... 219,716 1 O 38,555 12 6 1,716,141 8 3 Receipts for Services rendered, — Railways ... ... ... £838,622 10 8 Postal ... ... ... 149,042 12 7 Telegraphic ... ... ... 67,437 18 8 Judicial ... ... ... 56,222 2 11 Land Transfer and Deeds Registry 40,082 19 7 Registration and other Fees ... 32,205 11 3 Marine ... ... ... 14,220 5 3 Miscellaneous ... ... 69,320 9 6 1,267,154 10 5 Territorial Revenue, — Depasturing Licenses, Rents, &c. ... Miscellaneous ... 126,083 10 5 4,080 8 8 2,983,295 18 8 130,163 19 1 10,500 19 9 Miscellaneous Recoveries *Receipts in Aid, — Deficiency Bills issued under " The Public Revenues Act/1878" ... 3,123,950 17 6 94,200 0 0 Total £3,256,716 10 0 LAND FUND Land Sales, — Ordinary On Deferred Payments ... 275,135 4 5 24,031 14 7 299,166 19 0 Total £299,166 19 0 Durtog the year Bills to the amount «*^^*S£^-«3$&&*g£ these, Wo were red^Tin cash, U^,

No. 1. CONSOLIDATED FUND for the Financial Year ended 31st March, 1881. ACCOUNT.

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EXPENDITURE. FINANCIAL PERIOD 1879-80. £ s. d. £ s. d. £ s. d. Liabilities paid,— Permanent Appropriations, — Civil List Interest and Sinking Fund Under Special Acts of the Legislature Subsidies to Local Bodies Twenty per cent, of Land Revenue paid to Counties One-third of Proceeds of Land sold on Deferred Payments paid to Local Bodies New Plymouth Harbour Board Endowment Ellesmere and Forsyth Reclamation and Akaroa Railway Trust ... ... ... 1,208 2 4 19,311 4 6 2,732 5 1 2,093 4 7 7,487 0 6 5,906 4 9 327 6 5 321 19 6 Annual Appropriation, — Miscellaneous Services 39,387 7 8 301,130 6 8 Balance carried forward to next Financial Period 340,517 14 4 38,555 12 6 £379,073 6 10 FINANCIAL YEAR 1880-81. 26,867 3 2 1,450,542 17 7 39,755 9 6 Permanent Appropriations, — Civil List . Interest and Sinking Fund Under Special Acts of the Legislature Twenty per cent, of Territorial Revenue paid to Counties 13,704 15 0 Annual Appropriations, — Class I.—Legislative ... „ II. —Colonial Secretary „ III.—Colonial Treasurer ,, IV. —Minister of Justice ,, V. —Postmaster-Q-eneral ... ,, VI.—Commissioner of Customs „ VII. —Commissioner of Stamps „ VIII. —Minister of Education „ IX.—Minister of Native Affairs „ X.—Minister of Mines „ XL—Minister for Public Works „ XII. —Minister of Defence ... ... 1,530,870 5 3 35,070 7 11 189,086 1 7 52,126 9 5 122,124 13 2 238,566 13 6 76,774 6 9 22,966 16 2 263,000 7 8 8,302 16 10 9,147 1 9 515,249 9 8 92,546 1 2 Services not provided for ... ... ... 1,624,961 5 7 6,151 13 9 Debentures issued under "The Nelson Waterworks Loan Act, 1864," redeemed 3,161,983 4 7 6,200 0 0 Balance on 31st March, 1881,— Cash in the Public Account and in transitu Advances in the hands of Officers of the Q-overnment, — Colonial ... ... ... ... ... Foreign 10,686 3 4 3,168,183 4 7 24,883 7 0 41,463 15 1 69,347 2 1 8,500 0 0 88,533 5 5 Worn Silver Coin in transitu to Melbourne Mint Total £3,256,716 10 0 ACCOUNT. Permanent Appropriations, — Subsidies to Local Bodies Twenty per cent, of Land Sales Revenue paid to Counties One-third of Proceeds of Land sold on Deferred Payments paid to Local Bodies New Plymouth Harbour Board Endowment Ellesmere and Forsyth Reclamation and Akaroa Railway Trust ... 110,506 2 11 11,480 9 8 4,911 3 5 9,296 6 7 1,519 2 7 137,713 5 2 Annual Appropriations, — Crown Lands and Surrey Departments 129,080 5 5 Balance on 31st March, 1881,— Cash in the Public Account Advances in the hands of Officers of the Government, — Colonial ,., ... ... ... ... Foreign ... ... ... ... ... 266,793 10 7 28,909 11 3 3,043 17 2 420 0 0 3,463 17 2 32,373 8 5 Total £299,166 19 0

Table STATEMENT of the Receipts and Expenditure of the ACCOUNTS OF

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Treasury, Wellington, 20th April, 1881. Examined and found correct: James Edward Eitz Gerald, Controller and Auditor-General. 23rd May, 1881.

RECEIPTS. £ s. d. £ s. d. £ s. d. Balance on 31st March, 1880,— Cash in the Public Account Revenue appropriated to Local Bodies, —• Revenue from License and other Fees Revenue from Lands made over ... Gold Fields Revenue Gold Duty 47,023 0 3 6,U83 4 10 19,579 0 3 28,138 4 7 6,921 0 3 100,823 9 11 Counties Separate Accounts, — Revenue of Counties in which " The Counties Act, 1876," is not in operation Advance Accounts, — Recovered 16,855 10 6 1,550 2 1 119,229 2 6 Total £126,150 2 9 DEPOSIT Balance on 31st March, 1880,— CaBh in the Public Account Advances in the hands of Officers of the Government 47,020 6 6 43,239 13 8 Lodgments, — Armed Constabulary Reward Fund Armed Constabulary Reward Fund Investment General Assembly Library Fund ... Imperial Pensions Expenses Native Account, Coromandel Native Account, Thames Nelson Rifle Prize Fund... New Zealand University Endowments, Westland North Otago District Public Works Loan Act Otago Educational Reserves Outlying Districts Sale of Spirits Act Eaihvay Servants Fund ... Temporary Deposits Unclaimed Balances Unclaimed Property Waiau Sheep Dip Westland Loan Act Redemption ... 90,260 0 2 421 8 11 1,500 0 0 75 0 0 967 15 2 76 7 3 749 3 3 84 0 0 8 7 0 8,673 13 11 2,19a 0 0 62 15 5 80 5 8 39,707 7 7 1,007 7 11 10 0 22 10 0 82 13 4 55,711 15 5 Total £145,671 15 7

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No. 1—continued. CONSOLIDATED FUND for the Financial Year ended 31st March, 1881. LOCAL BODIES.

James C. Gatin, Secretary to the Treasury. James B. Hexwood, Accountant to the Treasury.

EXPENDITURE. £ s. d. £ s. d. £ b. d. Revenue paid over to Local Bodies, — Revenue from License and other Fees Eevenue from Lands made over ... G-old Fields Revenue Gold Duty 47,119 17 4 6,074 17 4 19,264 13 7 29,794 18 2 Counties Separate Accounts, — Amount distributed amongst Road Boards in Counties where " The Counties Act, 1876," is not in operation 102,254 6 5 17,308 15 11 Balance on 31st March, 1881,— Cash in the Public Account Advances in the hands of Officers of the Government, Colonial ... ... ... ... 119,563 2 4 6,580 19 5 6 10 6,587 0 5 Total £126,150 2 9 ACCOUNTS. ■ Withdrawals, — Armed Constabulary Reward Fund Armed Constabulary Reward Fund Investment Canterbury Surplus Land Revenue General Assembly Library Fund ... Hawke's Bay Surplus Land Revenue Imperial Pensions Expenses Nelson Rifle Prize Fund... Nelson Rifle Prize Fund Investment North Otago District Public Works Loan Act Otago Educational Reserves Outlying Districts Sale of Spirits Act Temporary Deposits Unclaimed Balances ... ,., Westland Loan Act Redemption ... 221 10 9 2,000 0 0 13,164 9 3 75 0 0 96 5 2 2,133 8 0 392 15 2 300 0 0 10,794 1 11 31 12 3 20 0 0 56,374 13 10 1,481 16 11 143 10 10 Balance on 31st March, 1881,— Cash in the Public Account Advances in the hands of Officers of the Government, Foreign 87,229 4 1 33,047 17 7 25,694 13 11 58,742 11 6 Total £145,971 15 7

8.—2

Table STATEMENT of Receipts and Expenditure of the PUBLIC WORKS

Treasury, Wellington, 20th April, 1881. Examined and found correct. James Edwaed Eitz Gerald, Controller and Auditor-General. 23rd May, 1881.

£ a. d. £ s. d. £ s. d. RECEIPTS. Balance on 31st March, 1880,— Cash in the Colony and in London Advances in the hands of Officers of the Government, — In the Colony ... In London 24,694 3 11 291,069 6 0 862,410 4 2 Wanganui Harbour Board Debentures Waimea Plains Railway Company Debentures ... Treasury and Deficiency Bills, representing temporary Advances to the Consolidated Fund 315,763 9 11 17,000 0 0 40,000 0 0 992,000 0 0 "New Zealand Loan Act, 1879," — Balance of Loan Special Receipts under Section 9 of " The Railways Construction Act, 18V8 " Miscellaneous Recoveries Temporary Advances obtained on the Security of the Imperial Guaranteed Debentures of " The Immigration and Public Works Loan Aet, 1870 " 751,000 0 0 1,841 2 1 41,333 2 8 2,227,173 14 1 300,000 0 0 .Note.—Balance on 31st March, 1880, subject to Liabilities,— Balance as above £2,227,173 14 1 Balance to be received of the Five Million TJoan of 1879 751,000 0 0 Imperial Guaranteed Debentures unissued ... 800,000 0 0 Total £3,778,173 14 1 £3,321,347 18 10 1,094,174 4 9

8.-2

No. 1—continued. FUND for the Financial Year ended 31st March, 1881.

James C. Gavin, Secretary to the Treasury. James B. Hetwood, Accountant to the Treasury.

£ s. d. £ s. d. £ b. d. EXPENDITURE. Annual Appropriations,— Class I. —Immigration „ II. —Public Works, Departmental „ III. —Railways ... ... „ IV. —Surveys of New Lines „ V.—Roads ... „ VI. —Land Purchases ... „ VII. —Waterworks on Gold Fields „ VIII.—Telegraph Extension „ IX.—Public Buildings „ X.—Lighthouses „ XL—Miscellaneous Public Works „ XII.—Contingent Defence „ XIII.—Charges and .Expenses 31,134 10 4 13,659 1 8 969,165 8 6 7,769 3 6 179,599 15 9 55,327 18 1 16,596 13 11 45,281 8 4 205,733 14 5 2,635 15 3 84,091 3 0 154,000 0 0 193,356 16 5 1,958,351 9 2 Services not provided for ... 2,622 19 6 Balance on 31st March, 1881, — Cash in the Colony and in London, and in transitu to London Advances in the hands of Officers of the Government, — In the Colony ... In London 1,960,974 8 8 693,544 4 1 10,519 4 0 113,410 2 1 123,929 6 1 Amount'in fixed deposit with the Colonial Bank of New Zealand, London, due 1st April, 1881 Wanganui Harbour Board Debentures New Zealand Government 5/40 Debentures Treasury Bills, representing temporaiy Advances to the Consolidated Fund 50,000 0 0 17,000 0 0 44,000 0 0 431,900 0 0 1,360,373 10 2 Note. —Balance on 31st March, 1881, subject to Liabilities, — Balance as above £1,360,373 10 2 Balance of Imperial Guaranteed Debentures unissued ' 500,000 0 0 £3,321,347 18 10 £1,860,373 10 2

8.—2

8

Table No. 1— continued. SUMMARY of Balances on 31st March, 1881.

Consolidated Fund. Public Woeks Fund. Suspense Account. Total. Funds. £ s. a. £ s. a. 79,224 11 1 98,511 14 2 8,500 0 0 £ s. a. 693,544 4 1 123,929 6 1 £ s. a. 393 18 6 £ s. a. 773,162 14 2 222,441 0 3 8,500 0 0 £ s. a. Cash Advances in hands oe Opeicebs or Government ... Woen Silver Coin in tbansit to Mint ... Amount in Fixed Deposit with the Colonial Bank oe New Zealand, London, due 1st Apeil, 1881... Wanganui Haebour Boabd Debentures New Zealand Government 5/40 Debentuees Tbeasuey Bills representing Temporary Advances to the Consolidated Fund 50,000 0 0 17,000 0 0 44,000 0 0 50,000 0 0 17,000 0 0 44,000 0 0 Consolidated Fund: — Ordinary Revenue Account ... Land Fund Account Accounts of Local Bodies Deposit Accounts 88,533 5 5 32,373 8 5 6,587 0 5 58,742 11 6 . Public Works Fund Suspense Account 186,236 5 9 *1,360,373 10 2 j 393 18 6 I 431,900 0 0 431,900 0 0 ; Totals 393 18 6 1,547,003 14 5 Total ... i 1,547,003 14 5 ] 186,236 5 9 1,360,373 10 2 * Balance of Pul Aad balance of (lie Works Funa, brought do wn Imperial G-uaranteea Debentures unissued Total Public Works Fund ... £1,360,373 10 2 500,000 0 0 ... £1,860,373 10 2

9

8.—2

Table No. 2. STATEMENT of the Estimated and Actual Expenditure of the Consolidated Fund for the Financial Year ended 31st March, 1881, and of the Estimated Liabilities at that date.

2—B. 2.

Estimated Expenditure. Actual Expenditure. Outstanding Liabilities on 31st March, 1881. • ibdinaey Revenue Account :— Permanent Appropriations,— Civil List... Interest and Sinking Fund ... Under Special Acts of the Legislature £ e. d. 29,750 o o i,453,i6i 7 2 50,587 14 o £ 8. d. 26,867 3 2 •,4So>542 17 7 39,755 9 6 £ a. d. 300 o o 225 7 io 1,533,499 1 2 1,517,165 10 3 525 7 io Annual Appropriations,— Class I. —Legislative „ II. —Colonial Secretary „ III.—Colonial Treasurer „ IV. —Minister of Justice „ V. —Postmaster-General and Commissioner of Telegraphs ... ,, VI. —Commissioner of Customs „ VII. —Commissioner of Stamps ,, VIII. —Minister of Education ... ' „' IX. —Minister of Native Affairs ,, X. —Minister of Mines „ XL —Minister for Public Works „ XII. —Minister of Defence 35>3oo 5 10 191,977 18 6 50,330 5 6 133,7°6 16 4 261,357 I2 1 89,244 5 2 23,897 10 o 276,162 o o •5,177 9 1 23,141 13 4 604,446 16 7 163,446 n 3 35,070 7 11 189,086 1 7 52,126 9 5 122,124 13 2 238,566 13 6 76,774 6 9 22,966 16 2 263,000 7 8 8,302 16 10 9,147 1 9 515,249 9 8 92,546 1 2 22,490 o o 2,163 9 ° 5,110 o o 8,166 6 o 4,334 7 4 520 8 10 3,550 o o 1,267 2 3 7,820 o o 86,595 17 5 22,971 7 7 Less 10 per cent, deducted from Salaries 1,868,189 3 8 66,666 o o 1,801,523 3 8 1,624,961 5 7 164,988 18 5 Special Appropriations, — 20 per cent. Territorial Revenue paid to Counties Nelson Waterworks Debentures redeemed Services not provided for 13,867 11 o 13,704 iS o 6,200 o o 6,151 13 9 13,867 11 o 26,056 8 9 Summaey. Permanent Appropriations Annual Appropriations ... Special Appropriations ... ... ... £ s. d. 1,533,499 • 2 1,801,523 3 8 13,867 11 o £ b. d. 1,517,165 10 3 1,624,961 5 7 26,056 8 9 £ s. d. 5 25 7 10 164,988 18 5 Less Amount estimated not to be expended within the year 3,348,889 15 10 225,000 o o Totals, Ordinary Revenue Account 3,123,889 15 10 3,168,183 4 7 165,514 6 3 iAnb Fund Account : — Annual Appropriations ... £ 8. d. 128,284 3 2 £ B. d. 129,080 5 5 £ s. d. 8,955 J5 4 Special Appropriations, — Subsidies paid to Local Bodies 20 per cent. Land Sales paid to Counties One-third of Land Sales on Deferred Payments 25 per cent. Land gales paid to New Plymouth Harbour Board ... Ellesmere and Forsyth Reclamation, &c. 103,296 o o 11,421 17 9 16,000 0 o 110,506 2 11 11,480 9 8 4,9" 3 5 100 o o 12,620 7 6 3,000 o o 9,296 6 7 1,519 2 7 15,618 14 s 266 9 7 •33.71? '7 9 •37,713 5 2 28,605 •• 6 Totals, Land Fund Account 37,5 fil 6 10 262,002 on 266,793 io- 7 Annual Appeopbiations eecapituxated :— Ordinary Revenue Account Land Fund Account £ a. d. 1,801,523 3 8 128,284 3 2 £ a. d. 1,624,961 5 7 129,080 5 s £ s. d. 164,988 18 5 8,955 15 4 1,929,807 6 10 i.7S4>°4i •• ° 173,944 13 9

8.—2

10

Table No. 3. COMPARATIVE STATEMENT of the Estimated and Actual Receipts of the Consolidated Fund for the Financial Year ended 31st March, 1881 (exclusive of Revenue of Local Bodies and Deposits).

Dies tENCES. Receipts. Estimated. Actual. More than Estimate. Less than Estimate. Oedi'nae'y Revenue : — Raised by Taxation, — Customs Stamps Beer Duty Property-Tax ... Receipts for Services Rendered, — Railways .., Postal Telegraphic Judicial Land and Deeds Registration and other Fees Marine Miscellaneous ... £ b. d. 1,250,000 o o 140,000 o o 48,000 o o 300,000 o o 950,000 o o 145,000 o o 80,000 o o 60,000 o o 32,000 o o 32,000 o o 16,000 o o 50,000 o o £ s. d. 1,307,634 19 3 142,803 8 4 45,986 19 8 219,716 1 o 838,622 10 8 149,042 12 7 67,437 18 8 56,222 2 11 40,082 19 7 32,205 11 3 14,220 5 3 69,320 9 6 £ b. d. 57,634 19 3 2,803 8 4 4,042 12 7 £ s. d. 2,013 ° 4 80,283 19 o m,377 9 4 8,082 19 7 205 11 3 12,562 1 4 3,777 i7 1 19,320 9 6 i,779 14 9 Tebbitoeial Revenue : — Depasturing Licenses, &c. 135,000 o o 130,163 19 1 4,836 o 11 Special Receipts : — Miscellaneous Recoveries 10,500 19 9 10,500 19 9 Land Fund :— Land Sales 3,238,000 o o 3,123,960 17 6 102,591 o 3 216,630 2 9 102,591 o 3 200,000 O O 299,166 19 o 99,166 19 o £"4,039 2 6

13.—2.

Table No. 4. The PUBLIC DEBT of NEW ZEALAND on 31st March, 1881.

11

Annual Chabge. Debentuees and Teeasuey Bills in ClECULATION. Net Indebtedness. Loans. Sinking Funds Acceued. Inteeest. Sinking Fund. Amount. When Redeemable. Rate. Amount. Rate. Amount. TJndeb Acts of the Colonial Govebnment :— Ordinance of Legislative Council New Zealand Loan Act, 1856 ... •< £ 4? £ s. d. £ s. d. 1. cent. £ a. d. p. cent. cent. £ s. d. £ a. d. 375,ooo 25,000 50,000 50,000 311 > 500,000 On presentation January, 1888 October, 1888 October, 1889 June, 1894 > 387,812 11 8 3" o o 112,187 8 4 4 20,000 o o 2 2 10,000 o o 30,000 o o New Zealand Loan Act, i860 r New Zealand Loan' Act, 1863 ... -{ 488,000 500,000 201,500 236,000 93,900 93,100 !- 1,519,400 i J 1 July, 1891 15 Jul y, 1914 1 November, 19 15 15 March, 1891 15 June, 189 1 15 December, 1891 62,696 8 6 I r- 447,425 19 3 J 30,403 11 6 i,o7i,974 o 9 6 f 5 I 4 •I 6 I 6 I 6 5,586 o o 24,400 o o 20,000 o o 12,090 o o 14,160 o o 5,634 o o 2 I I 2 2 2 1,862 o o 4,880 o o 5,000 o o 4,030 o o 4,720 o o 1,878 o o 7,448 o o 29,280 o o 25,000 o o 16,120 o o 18,880 o o 7,512 o o I Consolidated Loan Act, 1867 ... < 4,583,100 64,000 13,000 > 4,660,100 36 years from issue 1 January, 1893 15 April, 1913 1 r s 1 229,155 o o 3,200 o o 520 o o 1 i 45,831 o o 274,986 o o 3,200 o o 520 o o r • 1 Defence and Other Purposes Loan Act, 1870 -. 600,000 50,000 20,000 75,000 5,000 250,000 f- 1,000,000 36 years from issue 31 December, 1885 1 July, 1910 15 April, 19 13 25 June, 188 1 15 July, 1906 (5/30) 1 r-1,072,034 7 9 5 5 4* 5 30,000 o o 2,500 o o 900 o o 3,000 o o 225 o o 12,500 o o I I 6,000 o o 36,000 o o 2,500 o o 900 o o 3,000 o o 225 o o 12,500 o o 7,788,065 12 3 I J r 2,100,000 372,100 27,900 200,000 500,000 y 3,200,000 rtrt 36 years from issue 15 A PriI > '913 15 April, 1882 1 June, 1907 1 Feb., 1904 (5/30) 5 ' 4 4i I 4 I 4* 105,000 o o 14,884 o o 1,255 10 o 8,000 o o 22,500 o o 1 i 21,000 O O 126,000 o o 14,884 o o 1,255 10 o 12,000 o o 22,500 o o Immigration and Public Works Loan Act, J 1870 I 2 ; 4,000 o 0 North Otago District Public Works Loan Act, 1872 Immigration and Public Works Loan Act, ( 1873 I 1,500,000 500,000 17,000 1 November, 1902 1 Feb., 1904 (5/30) 15 July, 1906 (5/30) 3,476 12 7 I3>523 7 5 5 ( 4* (. 5 850 o o 67,500 o o 25,000 o o 10* 7,000 o o 7,850 o o 67,500 o o 25,000 o o } 2,000,000 2,000,000 o o f General Purposes Loan Act, 1873 ... -{ 12,300 49,500 20,900 18,500 6,200 142,600 500,000 (• 750,000 J 15 May, 1914 15 December, 1881 15 October, 1883 15 October, 1913 15 October, 1885 Various 15 "My, 1906 (5/30) 1 r J 750,000 o o r 4 5 4 H 4 I 4i I 5 I 5 492 o o 2,475 o o 836 o o 740 o o 279 o o 7,130 o o 25,000 o o ... I I 492 o o 2,475 o o 836 o o 740 o o 279 o o 7,130 o o 25,000 o o ... ... Carried forward 13,739.911 11,766,465 o 3 665,811 10 o 116,201 o o i,973,445 19 9 782,012 10 o * This rate is payable on the amount of the original issue, viz., £70,000.

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12

Table No. 4— continued. The PUBLIC DEBT of NEW ZEALAND on 31st MARCH, 1881— continued.

■Annual Chabge. Debentubes and Teeasuet Bills in ClECULATION. I Loans. Sinking Funds Acobued. Net Indebtedness. Inteeest. Sinking Fund. Amount. When Redeemable. Rate. Amount. Rate. Amount. Brought forward £ £ '3.739,9" £ s. d. 1,973,445 19 9 £ a. d. ",766,465 o 3 p. cent. £ s. dJ 665,811 10 ol :p. cent. £ s. d. 116,201 o o £ a. d. 782,012 10 o Under Acts oe the Colonial G-oveenment — continued. Westland Loan Act, 1873 Immigration and Public Works Loan Act, 1874 New Zealand Loan Act, 1876 New Zealand Loan Act, 1877 New Zealand Consolidated Stock Act, 1877 ... New Zealand Loan Act, 1879 50,000 4,000,000 1,000,000 2,500,000 5,371,200 524,000 15 April, 1894 1 Feb., 1905 (5/30) 1 Mar., 1918 (10/40) 1 Mar., 1918 (10/40) 1 November, 1929 I November, 1889 935 15 7 1 49,064 4 5 4,000,000 o o 1,000,000 o o 2,500,000 o o 5,371,200 o o 524,000 o o 5 4* 5 5 4 5 2,500 o o 180,000 o o 50,000 o o 125,000 o oi 214,848 o o 26,200 o o 2,500 o o 180,000 o o 50,000 o o 125,000 o o 214,848 o o 26,200 o o Treasury Bills, — Treasury Bills Extended Currency Act, 1873 Treasury Bills Extended Currency Act, 1876 Financial Arrangements Act, 1876 Treasury Bills Act, 1879 Treasury Bills Act, 1880 180,000 60,000 23,900 3 10, 100 326,100 I U «. 900,100 1 November, 1882 1 November, 1882 1 November, 188 1 31 December, 1882 30 June, 1883 J 900,100 o o 46,200 8 11 46,200 8 11 kfd.p.d. ITndbe Acts oe Oedinances op the late Peovincial G-ovebnments :— Auckland Loan Act, 1863 Wellington Loan Act, 1866 Nelson Loan Act, 1874 Ly ttelton and Christchurch Railway Loan, Ordinance, i860 Canterbury Loan Ordinance, 1862 ... Otago Loan Ordinance, 1862 ... ... 31,600 13,500 18,000 '1 )- 280,300 J 28,365,511 33 years from issue 1 July, 1886 Various. 9,490 19 6 6,576 7 5 22,109 o 6 6,923 12 7 18,000 o o 6 8 1,896 o o 1,080 o o 1,260 o o 2 632 o o 270 o o 2,528 o o 1,35° o o 1,260 o o 2 7 77,700 22,800 I 116,700 30 years from issue 50 years from issue 1 July, 1898 32,291 o 8 2,196 2 1 32,305 10 1 45,4o8 19 4 20,603 17 II 84,394 9 11 26,308,269 4 11 6 6 6 4,662 o o 1,368 o o 7,002 o o 2 1 1,554 o o 228 o o 1,167 o o 6,216 o o 1,596 o o 8,169 o ° 1 Advances on Secubitx ob Debentuees ] and Tbeasuex Bills :— Immigration and Public Works Loan Act, 1870 Treasury Bills Act, 1879 300,000 500,000 J 800,000 31 December, 1882 2,057,241 15 1 300,000 o o 500,000 o o * 1,327,827 18 II 25,664 1 3 120,052 o o 1,447,879 18 II 25,664 1 3 3td.p.d. Totals 29,165,511 2,057,241 15 1 27,108,269 4 11 1,353,492 O 2 120,052 o o 1,473,544 o 2

13

8.—2

Table No. 5. STATEMENT showing the Total Ways and Means of the Public Works Fund, and the Total Net Expenditure to the 31st March, 1881.

WAYS AND MEANS. NET EXPENDITURE. Loans :— Immigration and Public Works Loan, 1870 Immigration and Public Wouks Loan, 1873 Immigration and Public Works Loan, 1874 General Purposes Loan, 1873... New Zealand Loan, 1876 New Zealand Loan, 1877 New Zealand Loan, 1879 £ s. d. 4,000,000 o o 2,000,000 o o 4,000,000 o o 750,000 o o 750,000 o o 2,200,000 o o 5,000,000 o o £ s. d. £ s. d. Immigration . Public Works Department Railways, including Surveys of New Lines Roads Land Purchases* Waterworks on Gold Fields ... ... ... Telegraph Extension Public Buildings Lighthouses Miscellaneous Public Works ... Contingent Defence... Charges and Expenses Coal Alines Interest and Sinking Fund £ s. d. 1,921,419 15 10 157,343 1 11 9-437,145 9 2 1,208,323 9 2 829,457 1 2 497,506 10 11 412,546 17 3 857,753 5 o 87,838 19 o 557,149 7 11 259,000 o o 751,442 14 I 10,835 8 o 218,500 o o 17,206,261 19 5 Receibts in Aid :— Contribution of Canterbury Province for Railwavs Stamp Duties to 31st December, 1876 ... Transfer from Confiscated Lands Liabilities Account Proceeds of Railway Material handed over to Cook County Council ... Special Receipts under Section 9 of "The Railways Construction Act, 1878 " 56,000 o o 264,657 16 4 19,963 1 3 4,963 7 4 21,051 4 8 366,635 9 7 Imprest Advances in the hands of Officers of the Government 123,929 6 1 17,330,191 5 6 Balance on 31st March, 1881, — Cash in the Public Account in London and in the Colony Bank Drafts on London ... Wanganui Harbour Board Debentures New Zealand Government 5/40 Debentures Fixed Deposit with the Colonial Bank of New Zealand, London, due 1st April, 1881 Treasury Bills representing Temporary Advances to the Consolidated Fund Imperial Guaranteed Debentures unsold 193,544 4 1 500,000 o o 17,000 o o 44,000 o o 50,000 o o £19,066,635 9 7 431,900 o o 500,000 o o 1,736,444 4 1 £19,066,635 9 7 * Land purchases originally included expenditure on " Roads to 0] ien ui Lands recentb lurchased," now included under the head of " Roads."

8.—2

14

Table No. 6. Statement of the Estimated Liabilities of the Public Works Fund outstanding on the 31st March, 1881.

Table No. 7. ORDINARY REVENUE ACCOUNT. Comparative Statement of the Estimates for Services annually voted by Parliament, as sent down to the House, for the Years 1880-81 and 1881-82.

Class I.—Immigration ... Class II. —Public Works Department Class III.—Railways Class IV.—Surveys of New Lines of Railways Class V.—Roads Class VI.—Land Purchases Class VII. —Waterworks on G-old Fields Class IX.—Public Buildings Class X. —Lighthouses Class XI.—Miscellaneous Public Works £ s. d. 664 1 6 647 18 3 428,687 1 8 406 6 8 74,4" 2, 5 997,725 o o 11,029 11 8 33.249 18 5 IOO o o 38,591 8 10 Total £1,585.512 is 5

1880-81. 1881-82. Less than for 1880-81. Class ,, .. i I. Legislative ... II. Colonial Secretary III. Colonial Treasurer ... IV. Minister of Justice ... V. Postmaster-General and Commissioner of Telegraphs VI. Commissioner of Customs VII. Commissioner of Stamps VIII. Minister of Education IX. Minister of Native Affairs X. Minister of Mines XL Minister for Public Works XII. Minister of Defence ... £ s. d. 39.851 15 10 170,220 8 5 49,470 6 8 *I26,872 4 6 278,646 10 o 92,743 11 4 23,785 o o 297,730 o o 24,529 8 9 23,200 o o 1646,582 13 o 334,981 11 3 £ a. d. 35,400 o o 162,777 3 ° 28,947 5 6 112,751 8 8 227,650 4 2 69,820 10 10 22.395 o ° 277,416 2 9 19,084 19 3 21,033 10 o 593,090 18 I 204,245 6 8 £ a. d. 4,45i '5 10 7.443 5 5 20,523 1 2 14,120 15 10 50,996 5 10 22,923 o 6 1,390 o o 20.313 17 3 5.444 9 6 2,166 10 o 53,491 14 11 130,736 4 7 Deduct contribution from Loan for Defence Services 2,108,613 9 9 154,000 o o 1,774,612 8 11 75,000 o o 334,001 o 10 Totals i,954.6i3 9 9 1,699,612 8 11 * £10,267 2s. id. transferred to Class IX. t £1,900 transferred to Class VI., and £14,403 4s. 4d. addi shown in the Estimates of 1880-81 as liabilities of 1879-80, nc 3d to this class, b( iw included in thi ang the uneipendi 3 votes for the sen sd balance of item: 'ices of the current fear.

15

8.—2

Table No. 8. Estimated Receipts and Expenditure of the Ordinary Revenue Account for the Financial Year ended 31st March, 1882.

EECEIPTS. £ s. d. £ s. d. EXPENDITURE. Peemanent Appbopeiations :— Civil List ... Interest and Sinking Eund ... Under Special Acts of the Legislature ... Raised by Taxation :— Customs ... Stamps Beer Duty Property -Tax Land-Tax Arrears ... 1,345,000 o o 150,000 o o 60,000 o o 270,000 o o 1,000 o o £ s. d. 29,750 o o 1,499,318 2 1 41,851 8 4 £ 8. d. i.5J 0,9!9 >° i Fob Seevices Rendeeed :— Railways ... Postal Telegraphic Judicial ... Land Transfer and Deeds Registry Registration and other Fees ... Marine Miscellaneous 910,000 o o 150,000 o o 76,000 o o 58,000 o o 40,000 o o 33,000 o o 13,000 o o 60,000 o o Annual Appbopeiations :— Class I. Legislative ,, II. Colonial Secretary „ III. Colonial Treasurer „ IV. Minister of Justice „ V. Postmaster-General and Commissioner of Telegraphs ,, VI. Commissioner of Customs „ VII. Commissioner of Stamps ... ... „ VIII. Minister of Education „ IX. Minister of Native Affairs „ X. Minister of Mines „ XL Minister for Public Works „ XII. Minister of Defence 35,400 o o 162,777 3 o 28,947 5 6 112,751 8 8 227,650 4 2 69,820 10 10 22,395 ° ° 277,416 2 9 19,084 19 3 21,033 i° o 593,090 18 I 129,245 6 8 Depastxjbing Licenses and Assessments, &c. ... 1,340,000 o o 1,699,612 8 11 ■£3>297, 65° ° ° Deficit on 31ST Maech, 1881 3.2?o,53i 19 4 5,666 14 7 3,276,198 13 11 21,451 6 1 Total Suepius on 31ST March, 1882 Total

8.—2

16

Table No. 9. Estimated Receipts and Expenditure of the Land Fund for the Financial Year ending 31st March, 1882.

Land Sales RECEIPTS. £ s. d. ! 333,000 o o EXPENDITURE. Permanent Appropriations, — One-third of proceeds of Deferred-payment Land, payable to Loeal Bodies New Plymouth Harbour Board Endowment Ellesmere and Forsyth Reclamation and Aisaroa Railway Trust Subsidies to Local Bodies in arrear £ s. d. 30,600 o o 33,000 o o 21,266 9 7 100 o o £ s. d. Balance on 31st March, 1881 32,373 8 5 £365,373 8 5 Annual Appropriations, — Crown Lands Department Crown Lands, Miscellaneous Services Coal Fields ... Survey Department Native Lands Court and other Special Surveys Photographic and Lithographic Printing Branch ... 20,415 5 o 7,025 o o 221 5 o 91,278 16 6 13,600 o o 2,044 ° ° 134,584 6 6 Rates to Local Bodies Roads Construction Board 27,000 o o Il8,822 12 4 £365,373 8 5

17

8.—2

Table No. 10. "PROPERTY ASSESSMENT ACT, 1879." Statement showing Total Capital and Total Annual Value as assessed under the Property Assessment Act in each Assessment District; also the Total Annual Value as assessed by Local Bodies.

J. Speeeey, Property-Tax Commissioner.

PROPERTY-TAX ACT, 1879.

Classification of Taxpayers according to the Amount of Tax paid. Under £1 ... ... ... ... ... ... ... 5,417 £1 and under £5 ... ... ... ... ... ... 9,048 £5 and under £10 ... ... ... ... ... ... 3,267 £10 and under £20 ... ... ... ... ... ... 2,146 £20 and under £50 ... ... ... ... ... ... 1,390 £50 and under £100 ... ... ... ... ... 480 £100 and under £200 ... ... ... ... ... 194 £200 and under £300 ... ... ... ... ... 66 £300 and under £400 ... ... ... ... ... 27 £400 and under £500 ... ... ... ... ... 14 £500 and under £1,000 ... ... ... ... ... 23 £1,000 and under £2,000 ... ... ... ... ... 12 £2,000 and under £3,000 ... ... ... ... ... 1 £3,000 and under £4,000 ... ... ... ... ... O £4,000 and under £5,000 ... ... ... ... ... 1 £5,000 and under £6,000 ... ... ... ... ... 0 £6,000 and under £7,000 ... ... ... ... ... 1 22,087 J. Sperrey, Property-Tax Commissioner.

3—8.—2.

Property A .ssessment. Annual Value as assessed by Local Bodies. Number of Yi iars' Purchase. Assessment DistrictCapital Value. Annual Value. Property Assessment. Local Bodies. Canterbury Otago Wellington Auckland ... Hawke's Bay Waitaki ... Nelson Southland... £ 16,874,837 11,269,068 12,205,050 10,290,120 5,320.967 9,012,360 4,002,106 4,983,674 £ 1,166,509 888,619 807,033 762,866 409.646 592,067 314.154 275,637 £ 1,121,963 771,832 828,277 677,384 349,001 612,784 283,314 270,469 14| 13i 15 13| 13 15| 12| 18 15 m 14215 15i 14| 14 18| 73,958,182 5,216,531 4,915,024 Average, !_{■ years Average, 15 years

8.—2

18

Table No. 10 — continued. Return of Freeholders' Interests in Land compiled from the Assessments made under the Property Assessment Act, classified according to the Value of each Owner's interest.

Return of Freeholders, classified according to Area, showing Total Value of their interests as assessed under the Property Assessment Act.

Note.—The above values do not include the assessed values of leasehold interests, for which see next table.

Value. Land in Boroughs. Land outside Boroughs. Colony. Under £100 £100 and under £200 200 „ 300 300 „ 400 400 „ 500 500 „ 1,000 1,000 „ 2,000 2,000 „ 3,000 3,000 „ 4,000 4,000 „ 5,000 5,000 „ 10,000 10,000 „ 20,000 20,000 „ 30,000 30,000 „ 40,000 40,000 „ 50,000 50,000 „ 60,000 60,000 „ 70,000 70,000 „ 80,000 ' 80,000 „ 90,000 90,000 „ 100,000 100,000 „ 150,000 150,000 „ 200,000 200,000 and over 3,337 3,618 3,281 2,264 1,611 3,606 2,123 706 332 198 452 172 36 15 3 3 2 11,380 6,843 4,633 3,207 2,394 6,456 4,111 1,452 731 444 778 327 123 62 30 22 12 8 13 4 14 5 9 13,130 9,774 7,407 5,251 3,822 9,626 5,807 2,097 1,018 667 1,157 509 164 78 44 29 17 14 b 12 10 9 1 1 Totals 21,761 43,058 60,658

Land i; Boroughs. Lar Be id outside troughs. !olony. Areas. Number of Value. Number of Owners. Value. Number of Owners. Value. Owners. t acre and under )ver 1 acre and under 5 acres „ 5 acres ,, 10 „ 10 „ „ 50 „ 50 „ „ 100 „ 100 „ „ 200 „ 200 „ „ 300 „ 300 „ „ 400 „ 400 „ „ 500 „ 500 „ „ 1,000 „ „ 1,000 „ „ 5,000 „ „ 5,000 „ „ 10,000 „ „ 10,000 „ „ 20,000 „ „ 20,000 „ „ 30,000 „ „ 30,000 „ „ 40,000 „ „ 40,000 „ „ 50,000 „ „ 50,000 „ „ 100,000 „ .00,000 acres and over ... 18,140 2,527 445 479 96 42 13 10 5 4 £ 10,705,017 4,899,409 1,435,558 1,763,368 327,484 181,822 111,932 78,896 13,453 134,259 11,151 3,815 1,601 6,093 5,969 6,116 3,069 1,299 820 1,522 1,182 171 141 54 18 10 20 7 £ 1,860,739 1,174,016 706,711 2,280,348 2,573,680 4,443,272 3,209,585 2,064,616 1,616,398 4,425,734 8,063,171 3,269,004 4,606,150 2,479,979 1,086,713 748,8S8 1,956,671 2,556,480 26,004 5,659 1,878 6,481 6,108 6,159 3,090 1,305 834 1,516 1,202 172 141 54 18 10 20 7 £ 9,591,749 4,041,165 1,571,079 3,841,806 3,416,960 5,487,925 3,867,412 2,506,964 1,965,189 5,089,297 10,061,719 3,500,251 4,781,525 2,546,234 1,138,293 756,661 2,026,851 2,582,273 Totals ... 21,761 19,651,198 43,058 49,122,155; 60,658 68,773,353

8.—2.

Table No. 10 — continued. Return of Leaseholders under the Crown, classified according to the Value of the Leasehold Interest held by each Lessee, as assessed under the Property Assessment Act.

Return of Leaseholders under the Crown, classified according to Area, showing Total Value of Leasehold Interest, as assessed under the Property Assessment Act.

19

Value. Land in Boroughs. Land outside Boroughs. Colony. Under £100 £100 and under £200 200 „ 300 300 „ 400 400 „ 500 500 „ 1,000 1,000 „ 2,000 2,000 „ 3,000 3,000 „ 4,000 4,000 „ 5,000 5,000 „ 10,000 10,000 „ 20,000 20,000 „ 30,000 30,000 „ 40,000 40.000 „ 50,000 50,000 „ 60,000 60,000 „ 70,000 70,000 „ 80,000 80,000 „ 90,000 90,000 „ 100,000 100,000 „ 150,000 150,000 „ 200,000 200,000 and over 313 78 34 21 15 20 13 4 3 400 114 66 52 20 83 50 28 17 7 33 8 710 191 100 72 35 103 63 31 20 8 34 8 1 1 1 1 1 1 1 Totals 502 881 1,378

Laud ii Boroughs. Land outsi ide Boroughs. >lony. Areas. Number of Lessees. Value. Number of Lessees. Value. Number of Lessees. Value. 1 acre and under ... 3ver 1 acre and under 5 acres ... 5 acres and under 10 ,, 10 „ 50 „ ... 50 „ 100 „ 100 „ 200 „ 200 „ 300 „ 300 „ 400 „ 400 „ 500 „ 500 „ 1,000 „ 1,000 „ 5,000 „ 5,000 „ 10,000 „ 10,000 „ 20,000 „ 20,000 „ 30,000 „ 30,000 „ 40,000 „ 40,000 „ 50,000 „ 50,000 „ 100,000 „ .00,000 acres and over 490 6 2 4 £ 91,319 2,500 9,800 695 280 22 23 40 58 65 39 13 11 33 63 43 46 48 29 14 40 14 £ 23,412 4,529 8,507 6,928 5,071 9,401 8,187 3,699 6,233 12,206 35,011 16,141 42,578 65,843 75,523 53,151 188,735 143,321 766 27 23 46 58 65 39 13 11 33 63 43 46 48 29 14 40 14 £ 111,531 6,829 8,507 17,423 5,071 10,206 8,387 3,699 6,233 12,206 37,406 16,141 42,578 65,843 75,523 53,151 188,735 143,321 Totals 502 104,314 881 708,476 1,378 812,790

8.—2

20

Table No. 10— continued. Return of Leaseholders (exclusive of Crown Leases and Licenses), classified according to the Value of the Leasehold Interest held by each Lessee, as assessed under the Property Assessment Act.

Return of Leaseholders (exclusive of Crown Leases and Licenses), classified according to Area showing Total Value of Leasehold Interest, as assessed under the Property Assessment Act.

By Authority : George Didsbury, Government Printer, Wellington.—lBBl.

Value. Land in Boroughs. Land outside Boroughs. Colony. Under £100 £100 and under £200 200 „ 300 300 „ 400 400 „ 500 500 ., 1,000 1,000 „ 2,000 2,000 „ 3,000 3,000 „ 4,000 4,000 „ 5,000 5,000 „ 10,000 10,000 „ 20,000 20,000 „ 30,000 30,000 „ 40,000 40,000 „ 50,000 50,000 „ 60,000 60,000 „ 70,000 '70,000 ., 80,000 80,000 „ 90,000 90,000 „ 100,000 100,000 „ 150,000 150,000 „ 200,000 200,000 and oyer 1,030 709 382 256 162 380 274 113 47 33 35 6 1 1,745 688 352 188 109 246 140 35 25 12 30 8 4 2.817 1,432 755 449 260 641 406 146 71 38 64 15 5 Totals ... 3,428 3,582 7,099

Land ii Boroughs. Land outsi ide Boroughs. Colony. Areas. Number ofLessees. Value. Number of Lessees. Value. Number of Lessees. Value. 1 acre and under ... Over 1 acre and under 5 acres ... 5 „ 10 „ ... 10 „ 50 „ ... 50 „ 100 „ ... 100 „ 200 „ ... 200 „ 300 „ 300 „ 400 „ ... 400 „ 500 „ 500 „ 1,000 „ ... 1,000 „ 5,000 „ ... 5,000 „ 10,000 „ 10,000 „ 20,000 „ 20,000 „ 30,000 „ 30,000 „ 40,000 „ 40,000 „ 50,000 „ ... 50,000 „ 100,000 „ ... .00,000 acres and over 3,065 212 71 40 15 17 8 £ 1,666,037 142,815 42,240 21,568 4,845 11,657 6,710 977 202 148 538 414 428 208 109 70 150 152 59 32 12 6 2 10 5 £ 104,474 48,572 31,927 103,675 ,'59,551 96,176 55,612 25,626 25,116 93,093 187,562 103,912 115,556 61,547 40,560 7,000 59,304 56,305 4,098 446 194 612 438 476 221 98 82 156 152 59 32 12 6 2 10 5 £ 1,730,061 198,961 72,214 133,964 71,005 107,490 58,405 28,063 25,383 103,326 188,910 106,016 115,556 62,625 40,560 7,000 65,596 56,305 '"' ... Totals 3,428 1,895,872 3,582 1,275,568 7,099 3,171,440