FINANCIAL STATEMENT. (In Committee of Supply, 8th July, 1926.) BY THE HON. W. DOWNIE STEWART, MINISTER OF FINANCE.

Appendix to the Journals of the House of Representatives, 1926 Session I, B-06

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PAGE Accounts, Effect of Recent Legislation on .. .. .. .. .. 1 Allocation of Debt .. .. .. .. .. .. .. .. 11 Assets held against Debt .. .. .. .. .. .. ■. .. 13 Assistance to Large Families .. .. .. .. .. .. .. ..16 Capital Expenditure .. .. .. .. .. .. .. . ■ 8 Conclusion . . .. .. .. .. .. . . .. .. 18 Customs — Beer Duty .. .. .. .. .. .. .. .. 8 Revenue, 1925-26 .. .. .. .. .. .. .. .. .. 7 Estimated, 1926-27 .. .. .. .. .. .. .. 8 Death Duty Stock .. .. .. .. .. .. .. .. .. 10 Debt — Domicile of .. .. .. .. .. .. .. .. .. 12 Funded .. .. .. .. .. .. .. .. .. .. 14 Discharged Soldiers Settlement Account .. .. .. .. .. .. 9 Effect of Recent Legislation on Accounts .. .. .. .. .. .. 1 Estimates — Expenditure, 1926-27 .. .. .. .. .. .. .. .. 17 Results, 1926-27 .. .. .. .. .. .. .. .. 17 Revenue, 1926-27 . . .. .. .. .. .. .. .. .. 17 Estimates and Proposals, 1926-27, Summary of .. .. .. .. .. 20 Expenditure — Capital .. .. .. .. .. .. .. • • • • 8 Education .. .. .. .. .. .. ■ • • • 6 Estimated, 1926-27 .. .. .. .. .. .. .. 17 Health 6 Pensions .. .. .. .. .. .. .. .. ■ ■ 6 Principal Increases in .. .. .. .. • • • • • ■ .. 3 Social Services .. .. .. .. .. .. .. ■ • 6 Exports and Imports .. .. .. . . .. .. . • •. .. 7 Free of Income-tax Securities .. .. .. .. .. .. .. 10 Funded Debt .. .. .. .. .. .. . • • • •. .. 14 German Reparation-moneys .. .. .. .. .. .. • • 4 Government Railways Amendment Act, 1925 .. .. .. .. .. 1 Health 6 Immigration .. .. .. .. .. ■ • • • • • • • .. 9 Imports and Exports .. .. .. .. . . ■. ■ . • • .. 7 Interest — Public Debt Redemption Fund .. . . .. . - • • .. 2 Railway Capital Liability .. .. .. .. • ■ • • .. 2 Investment of Surplus Cash Balances .. .. .. .. .. .. .. 7 Legislation, Effect of, on Accounts .. .. .. . . .. ■ ■ 1 Loans — Falling due .. .. .. . ■ • • • • • • • • .. 10 Local Issue .. .. ■. • • • • • • • • ■ • .. 13 London Issue .. .. .. .. .. • • • • ■ • .. 14 New Loans raised .. .. .. .. .. ■ • • ■ • • . . 11 Paid off .. .. .. .. ■ • • • ■ • • • • • .. 12 State Advances .. .. .. .. ... y .. .• •• ..13 Long-term Mortgages .. .. .. .. .. • • > • • .. 16 Mortgages : Long-term Scheme .. .. . . .. . • • • • • .. 16 Net Charges on the Taxpayer . . . . .. . . .. . ■ •. .. 5 New Zealand Consols Account — Repeal of Act .. .. . ■ • • • • • • • • • • .. 10 Transfer of Cash and Investments .. . . .. .. •. ■ • .. 4

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INDEX.

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PAGE Non-productive Works .. .. .. .. .. .. .. .. 8 Pensions .. .. .. .. .. .. .. .. .. 6 Post and Telegraph Department .. .. .. .. .. .. .. .. 15 Productive Works .. .. .. .. .. .. .. 8 Public Debt — Allocation of .. .. .. .. .. .... .. 11 Annual Charges .. .. .. .. .. .. . . .. .. 12 Distribution .. .. .. . . .. .. .. .. . . 11 Domicile of .. .. .. . . .. . . . . .. 12 Sinking Funds .. .. .. . . .. .. .. .. 13 Public Debt Commission .. .. .. .. .. . .. . . 14 Public Debt Redemption Fund — Capital Account .. .. .. .. .. . . . . .. 13 Public Debt Repayment .. .. .. . . .. .. .. ..13 Public Works Fund, Aid to, from Revenue .. .. .. .. .. 16 Public Works Loan, 1926 . . .. .. .. .. . . .. 14 Railway Capital Liability . . .. .. . . . . .. . . 1 Redemptions —Death-duty Stock .. .. .. .. .. .. .. 10 Reparation-moneys .. .. .. .. .. .. .. .. 4 Repayment of the Public Debt Act, 1925 .. .. .. .. .. .. 2 Repayment of the Public Debt .. .. .. .. .. . . . . .. 13 Reserve Fund, London .. .. .. .. .. .. . . .. .. 11 Revaluations under Discharged Soldiers Settlement Acts .. .. . . . . 9 Revenue — 1925-26 .. .. .. .. .. .. .. .. .. .. 2 Comparison of Receipts per Capita .. .. .. .. .. .. .. 5 Customs and Excise .. .. .. . . . .. 7 Estimated Total, 1926-27 .. .. .. .. .. .. .. 16 Estimated under various Heads .. .. .. . . . .. 17 Royal Commission on Rural Credits .. .. .. .. .. .. 16 Rural Credits .. .. .. .. .. .. .. .. .. 16 Sinking Funds .. .. .. .. .. .. .. .. .. 13 Social Services, Expenditure on .. .. .. . . .. .. .. 6 State Advances Office — Capital Fund .. .. . . .. . . .. . . .. 15 Loans granted .. .. . . . . . . .. .. .. 15 Loans raised for .. .. . . .. .. . . .. .. 13 Summary of Year's Operations .. .. .. .. .. .. .. 4 Surplus .. .. .. .. .. .. .. . • ■ • 4 Taxation : Review of Position .. .. .. .. .. ■ ■ • ■ 16 Taxation Receipts — Allocation of, per Capita : Comparisons— Defence .. .. .. . • ■ ■ ■ ■ • • • • 6 Social Services.. .. .. .. . . . . .. .. 6 Summary .. .. .. .. . . .. .. .. 6 War Charges .. .. .. .. .. .. .. .. 6 Temporary Investment of Surplus Cash Balances .. .. .. .. .. 7 Transfer from New Zealand Consols Account .. .. .. .. .. 4 Transfer to Working Railways Account .. .. .. .. .. .. 4 Treasury Bills .. .. .. .. . ■ ■ • • • • • 6 War Charges .. .. .. .. .. ■. ■ ■ • ■ • • 6 War Expenses Account .. .. .. .. .. .. . . . • .. 10 Working Railways Account .. .. .. .. .. .. • ■ 1

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1926. NEW ZEALAND.

FINANCIAL STATEMENT. (In Committee of Supply, 8th July, 1926.) BY THE HON. W. DOWNIE STEWART, MINISTER OF FINANCE.

Mr. Hockly,— It is gratifying to find that as a result of last year's operations the Dominion finances have been maintained in a sound and satisfactory state. The surplus revenue of £1,150,000 shown in the Ordinary Revenue Account of the Consolidated Fund is largely due to increased Customs receipts, while the expenditure, although showing an increase on the previous year, is not more than was anticipated. The principle of enforcing economy and effecting savings has been sustained, and in this respect I will adhere to the established policy. For the current year it will be inadvisable to expect any increase in the gross revenue —in fact, the preparation of this Statement is based on the expectation of a possible reduction. It is imprudent to expand services in reliance on increased revenue mainly derived from Customs duties, a source inherently liable to fluctuations. Inflated revenue due to increased imports cannot be regarded as stable, and surpluses from such a source should, when available, be applied as far as possible to debt-reduction purposes, and not be regarded as a basis for reducing taxation. In this connection, and apart from our statutory obligations to reduce debt, the year's surplus has enabled about £414,000 out of the Ordinary Revenue Account to be utilized for debt-reduction, besides ensuring the transfer of £500,000 to Public Works Fund. EFFECT OF RECENT LEGISLATION ON ACCOUNTS. Before making the usual comparisons of revenue and expenditure with the figures for the preceding year I will explain briefly the effect on the accounts of the Consolidated Fund of certain enactments of last session. Consequent on the passing of the Government Railways Amendment Act, 1925, the railway receipts and payments no longer form part of the Ordinary Revenue Account, but are to be found under a separate Working Railways Account. In place of these there is a new item of revenue, " Interest on Railway Capital Liability," that is practically an equivalent of the difference between the railway receipts and payments formerly appearing on either side of the Ordinary Revenue Account.

Effect of recent legislation on accounts.

Government Railways Amendment Act, 1925.

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The net result of this change so far as the Ordinary Revenue Account for 1925-26 is concerned is as follows £ Interest received on capital liability .. .. 1,913,311 Excess of railway receipts over payments for the previous year (1924-25) deducted for comparative purposes .. .. 1,468,523 Leaves an increased receipt of .. .. .. 444,788 Deduct new item of payment for branch lines and isolated sections .. .. .. .. 344,830 Leaving a gain to the Consolidated Fund of .. £99,958 Against this latter sum, however, there is a further set-off of the additional interest on that part of the public debt allocated to railways during the financial year, with the result that the net effect on the Consolidated Fund is approximately the same for both financial years. The second change I refer to was brought about by the passing of the Repayment of the Public Debt Act, 1925. This Act has led to the appearance of another new item of receipt in the Ordinary Revenue Account under the heading of " Interest on the Public Debt Redemption Fund " —£897.756. Now, a large part of this £897,756 was in 1924-25 included in the total of " Interest on public moneys," under which heading was the interest received from Discharged Soldiers Settlement Account and other interest earned on investments of Government moneys. This year the interest receipts are divided, some £550,000 going to " Interest on the Public Debt Redemption Fund" and the balance remaining under " Interest on public moneys." The Public Debt Redemption Fund item, in terms of the Repayment of Public Debt Act, 1925, also received the interest on the capitalized sinking funds, so that the additional revenue from this source is £314,697, arrived at as follows:— £ Interest on public moneys, 1925-26 .. .. 605,061 Interest on Public Debt Redemption Fund .. 897,756 Total . . .. .. .. .. 1,502,817 Interest on public moneys, 1924-25 .. .. 1,188,120 Additional receipts, 1925-26 .. .. .. £314,697 There is, however, against this about £190,000, being that part of the increase in the sinking fund and statutory debt-reduction payments consequent on the passing of the Repayment of the Public Debt Act, 1925. As the payments under this Act will increase every year, this net gain to the Consolidated Fund will thus automatically disappear, and, in view of the writing-down of the discharged soldiers settlement capital, a considerable part of it may be wiped out during the present financial year. In this connection it will be remembered that the amount advanced out of the accumulated surplus for settlement of discharged soldiers now forms part of the Public Debt Redemption Fund. REVENUE. In the comparative revenue table (No. 3) attached to this Statement the amount received in 1925-26 for interest on railway capital liability is compared with the excess of railway receipts over payments for 1924-25. It will be observed that the net increase in the total revenue is shown as £1,719,345, but, as I have just explained, £444,788 on account of "Interest on railway capital liability " and £314,697 for " Interest on Public Debt Redemption Fund," may be set aside as being only nominal increases. Deducting these two amounts totalling £759,485, there is left a real increase in revenue compared with that of the previous financial year of £959,860.

Repayment of the Public Debt Act, 1925.

Revenue,

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The principal increases in the regular items of revenue are as follows : — £ Customs .. .. .. .. .. 814,488 Stamp and death duties .. .. .. .. 119,536 Post and Telegraph receipts .. .. .. 370,853 Against these increases there are the following decreases : — £ Land and income tax .. .. .. .. 86,128 Miscellaneous revenue .. .. .. .. 182,536 Recoveries on account of previous years .. .. 60,019 Of the decrease in land and income tax, £68,592 is on account of land-tax and is attributable to the wider application of mortgage exemption and to the annual shrinkage due to normal subdivision and succession of holdings. There were also less arrears to be collected. Reductions were made in the rates of income-tax last year of an estimated annual value of £150,000, but it is gratifying to note that this was largely compensated for by an increase in the income of taxpayers generally, the net decrease in the amount of tax collected being only £17,536. Details of the increase in stamp duties will be found in Table No. 6 attached to this Statement. It will be seen, therefore, that by far the greater part of the real increase in revenue is due to increased Customs receipts resulting from a greater volume of imports. EXPENDITURE. A detailed comparison of the year's expenditure with that of the previous year will be found in Table No. 7 attached. For the purpose of comparison the railway payments have been omitted from the figures for 1924-25. The net increase shown amounts to £1,807,466, of which £948,4.17 is on account of permanent appropriations, and is due principally to the following : — £ Interest charges .. .. .. .. .. 264,537 Sinking fund and debt-reduction charges .. .. 214,984 Railways, on account of isolated sections and branch lines . . . . . . . . .. 344,830 Increased benefits under old-age, widows, and blind pensions .. .. .. .. .. 150,000 War pensions, however, show a decrease of £62,000. The expenditure on non-paying lines is a new item, which, as already indicated, is offset by increased returns from railways. Similarly, the increased debt-reduction charges are covered by the additional receipt of interest on the Public Debt Redemption Fund. The net increase in permanent appropriations is thus only about £388,000. The increase in expenditure under departmental votes amounts to £859,049. The principal increases were : — £ Maintenance and repairs to roads .. .. .. 52,679 Pensions Department .. .. .. .. 88,409 Internal Affairs .. .. .. .. .. 68,796 Naval defence .. .. .. .. .. 157,847 Defence .. .. .. .. .. .. 88,387 Electoral .. .. .. .. .. 94,375 Education .. .. .. .. .. 102,448 The increases for Pensions and Internal Affairs Departments are largely due to taking over new liabilities on account of soldiers' treatment and war graves, &c., consequent on the closing of War Expenses Account. The increase for Naval defence is owing to the fact that a second cruiser joined the station during the year; while increased provision for military camps and trainees accounted for much of the increase in vote Defence. The increased expenditure under vote Electoral represents the cost of the general election, while that for Education is due to the usual expansion.

Expenditure.

Permanent appropriations,

Annual appropriations.

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It is satisfactory to note that, in reviewing the differences between appropriations and actual expenditure over the last few years, the estimating by Departments, considering their more extended operations, is showing closer results. SUMMARY OF YEAR'S OPERATIONS. A surplus of revenue over expenditure is again shown on the operations for the year, viz.,— £ Revenue .. .. .. .. .. 24,725,762 Net expenditure .. .. .. .. 23,570,083 Leaving a surplus of .. .. .. £1,155,679 The following shows the result in the funds of the Ordinary Revenue Account at the end of the year : —- £ Balance forward, Ist April, 1925 .. .. .. .. 4,150,806 Add— Surplus, 1925-26 .. .. .. .. ..1,155,679 Reparation-moneys received from Germany .. ... 186,227 Balance of New Zealand Consols Account transferred .. 475,992 Special receipts .. .. .. .. .. 858 5,969,562 Less — £ Special payments .. .. .. .. 1,917 Transfers during the year, to — Public Works Fund .. .. .. 500,000 Working Railways Account .. .. 473,392 Loans Redemption Account .. .. 566,161 — 1,541,470 Balance, 31st March, 1926 .. .. £4,428,092 The balance was held as follows : — £ Cash .. .. .. .. .. .. 2,343,168 Imprests outstanding .. . . . . .. 226,350 Investments . . .. .. . . 1,858,574 £4,428,092 The transfer of £473,392 to the Working Railways Account, in terms of the Government Railways Amendment Act, 1925, to provide funds for working capital represents the balance of the excess of railway revenue paid to the Consolidated Fund from the Ist April, 1896, to the 31st March, 1925, after allowing the interest on capital at the policy rates. The total excess was £1,327,649, from which were deducted moneys paid out of the Consolidated Fund for railway stores and other charges outstanding at the latter date, totalling £854,257, leaving a balance of £473,392. The year's revenue has not been charged with this non-recurring expenditure, as the excess railway revenue in past years has helped to build up the accumulated surpluses of the Consolidated Fund, and the payment has been regarded as a refund therefrom. Of the £186,227 reparation-moneys received from Germany, £151,824 was included in the £566,161 transferred to Loans Redemption Account and has been applied in reduction of the war debt. The New Zealand Consols Act was repealed by section 11 of the Finance Act, 1925, and the £475,992 shown as transferred to Ordinary Revenue Account above represents the balance of cash and investments of that account, to which I will return later. Consols to the value of £475,492 were redeemed out of the Consolidated Fund during the preceding financial year, and the balance of £500 in 1925-26.

Summary of year's operations.

Transfer to Working Railways Account.

Reparation-moneys.

Transfer from New Zealand Consols Aecount.

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The result of the year's operations is better than was anticipated, as, although last year the indications were for an increase in Customs revenue over the previous year, it was not expected to reach the excess of £584,000 over the estimate. While it is a matter for satisfaction that the year's working shows a substantial surplus it has to be recognized that the bulk of it comes from sources that cannot be counted upon to persist. NET CHARGES ON THE TAXPAYER. In order to illustrate our present position in regard to taxation as compared with that of 1914, I have prepared a statement showing the comparative charges on taxation for the various services provided for out of the Consolidated Fund. In making this comparison it is necessary to allow for the fact that the receipts and payments for 1913-14 are not comparable with those for 1925-26 without considerable adjustment, because within the period covered there was a fall in the purchasing-power of the pound. To obtain a true comparison between these two years the figures for 1913-14 should be increased by about one-half. This table will enable honourable members to gauge the weight of the war charges and social services.

Net charges on the taxpayer.

Revenue Receipts.

In order to facilitate the comparison of costs I have had the amount per head of mean population assessed in each case and the respective amounts for 1913-14 increased as mentioned above. That is to say, the total taxation receipts for 1913-14 averaged out at £5 Bs. 4d. per head, but in the table above have been increased by one-half —to £8 2s. 6d. — which figure approximately represents the average receipts in 1913-14 in the values of to-day.

Per Head of Mean Population. — 1913-14. 1925-26. ,,,,,, ,, ,, , ; , 1925-26 (Adjusted to a | fActuall comparable basis). | £ £ £ s. d. £ s. d. Customs .. .. .. 3,426,745 8,333,877 4 11 5 6 0 5 Beer duty .. .. .. 127,041 629,558 0 3 4 0 9 1 Land and income tax .. .. 1,321,722 4,635,175 1 15 3 2 8 3 Stamps .. .. .. 1,221,971 3,359,868 1 12 6 3 6 7 Miscellaneous .. .. .. 11,567 13,909 £6,109,046 £17,022,387 £8 2 6 £12 4 4 Charges on Taxation. Allocation of Taxation Receipts per Head of Mean Population. — 1913-14. 1925-26. 1913-14 (Adjusted to a , OM ,» comparable ' " ' basis). £ £ £ s. d. £ s. d. War pensions and debt charges .. .. 5,101,015 .. 3 13 3 Other debt charges .. .. 1,402,222 1,656,135 1 17 3 13 9 Social services (health and hospitals, 2,123,815 5,735,419 2 16 6 4 2 4 pensions and education) Defence (land, sea, and air) .. 538,373 891,099 0 14 5 0 12 9 Other charges (general and admini- 1,640,839 2,483,040 2 3 7 1 15 8 strati ve) Surplus for year.. .. .. 403,797 1,155,679 0 10 9 0 16 7 £6,109,046 £17,022,387 £8 2 6 £12 4 4

War charges.

Social services,

Naval defence.

Summary of position.

Pensions,

Health,

Education.

Treasury bills,

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On this basis the increase in the per capita receipts during the period is £4 Is. lOd. The first striking fact to be noted is that the cost of the charges directly due to the Great War averages £3 13s. 3d., and this accounts for nearly the whole of the increase in the taxation receipts per head. The other noteworthy increase is in the total amount devoted to social services, under which heading I group health and hospitals, pensions (excluding war pensions) and education. The actual charge on taxation for these three items amounted in 1913-14 to £2,120,000, which is roughly about one-third of the total collections for the year. During the last financial year no less than £5,735,000, or nearly one-half of the total collections less war charges, was expended on social services. On a comparable basis the expenditure 011 social services per head of population rose from £2 16s. 6d. in 1914 to £4 2s. 4d. in 1926, an increase of 45 per cent. The cost of defence for 1925-26 includes the expense of the second cruiser which recently joined the New Zealand Station, for only part of a year, so this item will show an increase for this financial year. The net expenditure on Naval defence for last year amounted to £441,203, an increase of £157,847 over that of the previous year. Setting aside the amount required to cover war charges and social services, which in 1925-26 absorbed £8 19s. 4d. out of a total of £12 4s. 4d. per head of revenue collected, the remaining revenue for other services does not represent in 1925-26 any real increase over that required in 1913-14. The results demonstrate that economy and control have been consistently applied to administrative expenditure, and that there has been no undue inflation of departmental services. In regard to existing social services there will, of course, be a steady rise due to increases in population, but this should be met by increased revenue receipts due to the same cause. Any new departures or extensions, however, can obviously only be made at the expense of increased taxation per capita, unless reductions can be made in the relative amounts required for other services. As regards last year's actual expenditure as compared with that of the. previous year, I wish to remark as follows:—Including £37,505 from national endowments on account of old-age pensions and £2,499 from gold duty in respect to miners' pensions, the total net payments 011 account of pensions for the last financial year amounted to £2,480,155, as against £2,403,614 for the previous year, an increase of £76,541, notwithstanding the fact that the war pensions showed a reduction of £62,630. Turning to expenditure on health, it will be seen from the accounts and particulars supplied that the subsidies under the permanent appropriations for Hospital and Charitable subsidies in 1925-26 totalled £600,000, the actual amount paid being £575,777, in addition to which a special subsidy of £18,000 was paid to the Nelson Hospital Board. It is estimated that an appropriation of £600,000, the same as last year, will be required for the current year. Subsidies on capital levies increased from £72,000 in 1923-24 to £115,000 in 1925-26, but it is not anticipated that the amount will further increase this year. The net expenditure of the Department from the Consolidated Fund other than subsidy was £34,968 more than that of the previous year. For education the net expenditure under the vote amounted to £2,879,719, to which must be added £157,341 received under special Acts, making a total provision out of the Consolidated Fund of £3,037,060 for 1925-26, as against £2,949,115 for 1924-25. In addition, there is also expenditure out of reserves and endowments, full particulars of which will be found in Table No. 20 attached to this Statement. TREASURY BILLS. Treasury bills in anticipation of the 1925 loan amounting to £500,000 were sold in London at 4§ per cent, discount at the beginning of April, 1925, and were duly redeemed out of the loan receipts.

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Further Treasury bills issued in anticipation of revenue were sold in New Zealand as follows: £250,000 in April, 1925; £500,000 in May, 1925; £500,000 in June, 1925 : total, £1,250,000 : the rate of interest being 5| per cent, in each case. The whole of these revenue bills were redeemed later in the year when the bulk of the revenue was received, so that there were no bills of this description outstanding at the close of the year. The redemption bills outstanding at the 31st March, 1926, amounted to £1,400,000, for which a corresponding amount of debt was redeemed on the issue of the bills. TEMPORARY INVESTMENT OF SURPLUS CASH BALANCES. Advantage was taken of the short money-market in London to invest Public Account cash balances which were not immediately required. The total interest earned on these investments during the year for periods ranging from a few weeks to three months was £28,069. With increasing interest charges it is desirable to make the fullest possible use of investing cash balances more closely, and I am taking steps to enable our facilities in this respect to be improved. CUSTOMS AND EXCISE. Including the tire-tax credited direct to the Main Highways Account, the Customs revenue for the financial year 1925-26 amounted to £8,573,388, while that for the preceding financial year was £7,689,192, an increase of £884,196. The principal classes of imports from a revenue-producing point of view give the following results : —

Saving on redemption bills.

Temporary investment of surplus cash balances.

Customs and excise.

Despite the falling-of? in the value of exports for the year —due partly to lower prices and partly to lessened production —the imports did not show any contraction and the revenue has been well maintained. The following table shows the values of imports and exports for each of the past seven financial years : —

It will be seen that for the financial year 1925-26 our imports exceeded our exports by £4,328,269. As the favourable balance (i.e., excess of exports over imports) for the preceding year was comparatively small, the indications are to expect some curtailment of imports at an early date.

1925-26. 1924-25. | Increase. £ £ £ Spirits .. .. .. .. 1,255,618 1,149,712 105,906 Tobacco, cigars, cigarettes .. .. 1,385,568 1,336,182 49,386 Apparel and textiles .. .. .. 1,815,396 1,664,170 151,226 Motor vehicles, tires, and parts .. .. 1,154,168 912,567 241,601 Other goods .. .. .. .. 2,472,185 2,174,887 297,298 Primage .. .. .. .. 490,453 451,674 38,779 Totals .. .. .. 8,573,388 | 7,689,192 884,196

Year. | Imports. , I xports. Excess of Exports, j Excess of Imports. £ £ £ £ 1919-20 .. .. 32,162,029 50,776,650 18,614,621 1920-21 .. .. 67,463,269 48,219,672 .. 19,243,597 1921-22 .. .. 35,986,060 43,794,883 7,808,823 1922-23 .. .. 37,112,779 45,548,700 8,435,921 1923-24 .. .. 44,401,756 51,652,606 7,250,850 1924-25 .. .. 49,821,095 54,771,158 4,950,063 1925-26 .. .. 53,025,856 48,697,587 .. 4,328,269

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Capital expenditure,

Productive works,

Non-productive works.

In view of the state of the trade balance, and keeping in mind the uncertainty of the future trend of prices of our produce, I have come to the conclusion that the Customs revenue for the coming year, notwithstanding the normal increase of population, will be substantially less than for last year. My estimate of the revenue for 1926-27 from this source is £7,650,000. The excise duty collected on New-Zealand-brewed beer during the year 1925-26 was £629,558 (compared with £650, 384 during the preceding year). The revenue from this source during the current financial year is estimated at £630,000. CAPITAL EXPENDITURE. In the last financial year, including £500,000 transferred from the Consolidated Fund, a total of £6,924,520 was made available for carrying on the public works and general development programme of the Government. The net expenditure on capital works out of accounts to which the additional loan capital was allocated may be summarized as follows : — £ Railway construction, additions, and improvement .. 2,786,190 Telegraphs and telephones .. .. .. 931,661 Hydro-electric supply .. .. .. .. 945,573 Main highways and roads .. .. .. 949,077 Irrigation, swamp-drainage, and rivers improvement.. 229,569 Public buildings, including schools .. .. 849,041 Other public works .. . . .. .. 489,368 Total .. . . .. .. £7,180,479 The Government's policy regarding public works generally will be fully explained by my colleague the Hon. the Minister of Public Works in his annual Statement. At this stage I am considering the general financial aspect of the matter. Considering the population of the Dominion, the above is certainly a large capital outlay for one year. It will be observed, however, that the greater part (about £4,700,000) was expended on the first three items enumerated —on railways, telegraphs and telephones, and hydro-electric-power schemes—all of which are productive works which as soon as completed will earn a large part if not the whole of the interest payable on the relative portion of the public debt. Main highways and irrigation and swamp-drainage can also be classed as productive, though the return is in some cases not so immediate. In regard to such productive works it is essential that every phase of the question —and particularly the probable earning-capacity —should be carefully considered before extensions or new works are undertaken, but once construction has been commenced it is obviously sound business that the work should be completed as quickly as possible, in order that the concern may start to earn interest. For this reason curtailment of finance for undertakings in hand would undoubtedly leave us with unproductive assets.

The second class of expenditure —on roads and schools and other public buildings—cannot be classed as unproductive, though there is no immediate monetary return. Roads, for instance, are necessary to open up new lands for settlement and to improve the existing means of communication, while education is vitally necessary to enable the next generation to be properly equipped to maintain and improve the standard of prosperity in this favoured Dominion. In this class of expenditure it is essential that the State should take the long view; but such expenditure is in the meantime a direct charge on the taxpayer as such, and care must be taken to see that the spending-rate is regulated in accordance with the real needs of the country and the financial strength of the Dominion. Although this class of expenditure cannot be placed on a commercial basis it is essential that the cost of renewals and replacements should be met out of revenue. An important consideration is the weight of the war burdens which I have previously referred to. The war debt in itself is a heavy dead-weight charge, and if further direct charges are placed on the taxpayer at a rate in advance of the increase in population and wealth of the Dominion, it must mean increased taxation, which in turn would retard business and hinder the development of the country.

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Another important factor which also affects productive expenditure is the price at which fresh capital can he obtained. The greater part of our public works have been constructed with capital obtained on relatively very favourable terms, but as a result of the huge destruction of capital during the war it is not to be expected that money will be cheap in the near future. In this connection, too, it must not be forgotten that a large part of the loan capital raised in the past at low rates will fall due in the next few years and have to be renewed at current rates of interest. The loan recently raised in London cost, including redemption of the discount and expenses over the period of the loan, about £5 6s. 2d. per cent. Used in the construction of productive works this means ultimately increased costs of the services to the consumer, and it is certainly too expensive to be used for works not financially productive. I hold the view that on completion of the large undertakings now in hand in respect of railways and hydro-electric power, a tapering-off policy should be adopted until a further national stocktaking justifies extensions commensurate with our increasing population and trade. IMMIGRATION. There has been a slight falling-off in the number of new arrivals in 1925-26 under the immigration policy, due to the hold-up occasioned by the shipping strike. The percentage of juveniles has been well maintained, and the migration of public-school and secondary-school boys is making good progress. The expenditure last year amounted to £107,521, compared with £136,353 for the previous year. DISCHARGED SOLDIERS SETTLEMENT ACCOUNT. New loans granted during the year have, as for some time past, been restricted mainly to T.B. and incapacitated discharged soldiers and to advances on current account for improvements to farms and purchase of stock, the total amount authorized during the year being £282,011. The advances paid over during the year, which included commitments from the previous year, totalled £725,974. The repayments and recoveries of principal amounted to £901,393. The amount of instalments and interest in arrear and in postponement account as at 31st March was £633,130, being a reduction of £121,820 on the previous year. The reduction, however, is largely due to the operations of the Dominion Revaluation Board by remissions of interest granted on its recommendation. REVALUATION UNDER DISCHARGED SOLDIERS SETTLEMENT ACTS. Following the revaluation of discharged soldier properties under the Discharged Soldiers Settlement Amendment Act, 1923, the Dominion Revaluation Board has been giving its attention to adjusting the current accounts of settlers in the manner authorized by the amending Act of 1924. As a consequence, reductions in capital of these accounts up to the 31st March totalling £49,242 were made, while a sum of £5,403 was transferred to Suspense Account. A summary of the position in-regard to revaluation reveals— £ Reductions in capital value of leaseholds .. .. 1,754,207 Reductions in value of buildings charged under leases 15,188 Reductions in mortgages .. .. .. 726,601 Reductions in current account .. .. .. 49,242 £2,545,238 In addition, substantial relief by way of remission of rent and interest has been given where deemed necessary" and in other cases postponement for varying terms up to ten years has been arranged. The loss of capital entailed in these revaluations will in due course be written off the £13,500,000 advanced out of the Consolidated Fund.

Immigration.

Discharged Soldiers Settlement Account.

Revaluation under Discharged Soldiers Settlement Acts.

3—B. 6.

8.—6

10

NEW ZEALAND CONSOLS ACCOUNT. The acceptance of deposits from the public for investment in Government securities was authorized in 1894 by the New Zealand Consols Acts (consolidated in 1908), and such deposits were inscribed in the Treasury registers in the form of New Zealand Consols. As investments in inscribed stock have taken the place of New Zealand Consols, there have been no transactions in consols for many years, and the outstanding balance (£475,992) has remained the same since 1914. The Consols matured on the Ist February, 1925, and in terms of the Acfc were paid off out of the Consolidated Fund. Except for some small amounts unclaimed, which have since been paid off, the amount was included in the sums applied in 1924-25 out of ordinary revenue surpluses for reduction of debt. Under these circumstances there was no reason to retain the system, and the Act was repealed last session by section 11, Finance Act, 1925. Authority was also taken to transfer the cash (£7) and investments (£475,985) to the Ordinary Revenue Account, which, as previously indicated, had met the liability to the investors. WAR EXPENSES ACCOUNT. This account was closed by the Finance Act of last year. Since then finality has been reached in the settlement of outstanding transactions between the New Zealand Expeditionary Force and Australian Forces in Egypt, whereby the Commonwealth Government has agreed to pay the sum of £45,000 to the Dominion Government in full and final settlement. This amount, when received, will be applied towards reduction of war loans. DEATH-DUTY-STOCK REDEMPTIONS. Death-duty stock issued under the authority of the War Loans and Discharged Soldiers Settlement Acts amounted to £1,848,200 on the Ist April, 1925, and was increased to £2,019,350 at the 31st March last by the issue of further similar stock under the authority of the Finance Act, 1920, section 15 (Electric-power Works), and the State Advances Act, 1913. Up to the 31st March, 1926, death-duty stock amounting to £635,890 had been presented in payment of duty. Further reductions in this form of security to the amount of £237,640 have also been effected by conversion into ordinary inscribed stock at the request of the holder and in cases where the whole of the death-duty stock has not been required in satisfaction of the duty payable. FREE-OF-INCOME-TAX SECURITIES. The conversion scheme inaugurated in September, 1922, by which the public were afforded an opportunity of converting free-of-tax securities into inscribed stock (not free of tax) has been availed of to the extent of £3,128,450. This sum, together with renewals and redemptions, has accounted for a reduction of £13,426,071, the total outstanding at the 31st March, 1926, being £38,307,334. LOANS FALLING DUE. Loans falling due in the next seven years ending with the year 1933, excluding Imperial debt repayments and Treasury bills, are :—

New Zealand Consols Account.

War Expenses Account.

Death-duty-stock redemptions.

Free-of-income-tax J securities.

Loans falling due.

I Year ending 31st March, London. Australia. New Zealand. Total. I £ £ £ £ 1927 .. .. .. 1,000 587,100 2,146,200 2,734,300 1928 .. .. .. .. 81,100 8,253,366 8,334,466 1929 .. .. .. 13,000 .. 14,452,265 14,465,265 1930 .. .. .. 29,569,840 .. 12,186,558 41,756.398 1931 .. .. .. .. 59,400 21,051,971 21,111,371 1932 .. .. .. 200 334,900 1,190,590 1,525,690 1933 .. .. .. .. 410,850 4,248,893 4,659,743 Totals.. .. £29,584,040 £1,473,350 £63,529,843 £94,587,233

11

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RESERVE FUND, LONDON. The Reserve Fund in London of £2,000,000 is invested in gilt-edged securities; the interest earned by the fund during the past year amounting to £90,550. PUBLIC DEBT. The gross public debt at the 31st March, 1926, was £238,855,478, as compared with £227,814,647 twelve months previously. The debt is allocated as follows : — £ Ordinary .. .. .. .. .. 125,992,741 War .. .. .. .. .. 75,333,648 State advances .. .. .. .. 27,771,153 Discharged soldiers settlement .. .. .. 9,757,936 £238,855,478 The increases are — £ Ordinary debt .. .. .. .. .. 6,055,882 State advances .. .. .. .. .. 6,334,973 £12,390,855 Decreases — £ Discharged soldiers .. .. .. .. 51,950 War debt .. .. .. .. 1,298,074 £1,350,024 leaving the net increase in the gross debt at £11,040,831. Of the increased debt of £11,040,831, State advances (settlers, workers, and local authorities) absorbed £6,334,973, or 57 per cent. The total borrowed for ordinary debt purposes was £6,859,566, but by redemptions out of Ordinary Revenue Account (£445,513), from other accounts (£356,071), and by the removal from the debt of debentures totalling £2,100, the increase in ordinary debt for the year was reduced to £6,055,882. The movement in the gross debt during the year is shown by the following :— New loans raised during the year for— £ Public works .. .. .. .. .. 3,939,870 Waihou and Ohinemuri Rivers improvement .. .. 69,000 Electric supply .. .. .. .. .. 830,000 Deteriorated lands .. .. .. .. 2,000 Education loans .. .. .. .. .. 478,650 Hauraki Plains settlement .. .. .. .. 70,000 Main highways .. .. .. .. .. 500,000 Railways improvement ' .. .. .. .. 500,000 Samoan loan .. .. .. .. .. 15,000 Swamp drainage .. .. .. .. .. 35,000 State advances .. .. .. .. .. 6,346,955 Charges and expenses:— Public works . . .. .. .. .. 294,032 Electric supply .. .. . . . . . • 42,005 Main highways .. .. .. .. , .. 42,004 Railways improvement .. .. .. .. 42,005 State advances .. .. .. .. . . 168,018 £13,374,539

Reserve Fund.

Public debt.

New loans during the year.

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12

Loans paid off during the year : — By transfers of cash from — £ Ordinary Revenue Account .. .. .. 899,449* .Nauru and Ocean Islands Account .. .. 40,000 Nauru and Ocean Islands Sinking Fund Account .. 20,150 Cheviot Estate Account .. .. .. .. 35, 613 Conversion Account .. .. .. .. 6,074 Discharged Soldiers Settlement Account .. .. 13,250 Discharged Soldiers Settlement Loans Act 1920 Depreciation Fund Account .. .. .. 38,371 Land for Settlements Account .. .. .. 22,575 Native Land Settlement Account .. .. .. 2,400 State Advances Office .. .. .. .. 100,000 War Expenses Account .. .. .. .. 17 Westport Harbour Account .. .. .. 23, 707 By utilizing cash in Public Debt Repayment Account .. 870, 638 By sinking funds released .. .. .. .. 88,771 By loans raised in 1924-25 for redemptions in 1925-26.. 64,680 Miscellaneous war credits applied to reduction of debt .. 62,409 Portion of amount advanced to High Commissioner in 1924-25 used for redemption in 1925-26 (Westport Harbour securities) .. .. .. .. 3,000 Debentures outstanding for more than ten years, removed from debt table.. .. .. .. .. 2,100 Discount on securities redeemed below par .. .. 40,504 £2,333,708 * Includes amount from German reparations so applied. £ Net increase as shown by above figures .. .. 11,040,831 Add gross debt at 31st March, 1925 .. .. .. 227,814,647 Gross debt at 31st March, 1926 .. .. £238,855,478 In addition to the above transactions, securities to the amount of £5,266,476 were renewed, £453,250 converted, and £17,786,565 debentures and inscribed stock and £6,500,000 Treasury bills were redeemed, in each case by the issue of new securities of an equal face value. The gross debt at the 31st March, 1926, was held as under: — Where held. Amount. £ New Zealand .. .. .. .. 107,164,718 Australia .. .. .. .. .. 3,643,100 London .. .. .. .. .. 128,047,660 £238,855,478 Gross Annual Charge. £ Interest .. .. .. .. .. 10,670,170 Annual sinking funds .. .. .. .. 7,000 Repayment of funded debt .. .. .. 350,074 Public Debt Repayment Account .. .. 928,492 Total gross charge .. .. .. .. 11,955,736 Estimated recoveries from trading and other accounts 2,500,849 Net annual charge at 31st March, 1926 .. £9,454,887

Loans paid off during the year.

Domicile of debt.

Annual charge.

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13

The assets held by the State which may be set ofl against the debt will be found detailed in Table No. 18 attached to this Statement. I am pleased to be able to state that as a result of considerable research into the history of the debt, the consolidated stock shown under the heading of Miscellaneous in the debt table (8.-l [Pt. Ill]) has now been allocated to the respective accounts concerned. This for the first time enables a true apportionment of the public debt to be made, and ensures a more accurate capitalization of the various Government undertakings, an important consideration in view of the balance-sheet system now in operation. A separate paper (8.-2) to be laid on the table of the House will explain the results of the investigation. SINKING FUNDS AND DEBT REPAYMENT. Sinking funds as below exist for the extinction of that portion of the debt to the following appropriate accounts : — £ State coal-mines .. .. .. .. 48,199 Nauru and Ocean Islands .. .. .. 19 Samoan loan .. .. .. .. .. 4,747 Westport Harbour loans .. .. .. .. 186,558 Electric supply .. .. .. .. .. 17,391 State advances .. .. .. .. .. 2,017,348 £2,274,262 By the Repayment of the Public Debt Act, 1925, means are provided whereby the whole of the public debt, other than those portions for which separate sinking funds exist, will be extinguished in approximately sixty years from the time of coming under the provisions of the Act. The Redemption Fund Capital Account, established by section 8 of the Act, is as under: — Moneys held by the Superintendent,'" State Advances £ Office .. .. . . .. .. 3,258,956 Moneys held by the Public Trustee .. .. 7,966,689 Moneys transferred by way of loan from the Consolidated Fund to the Discharged Soldiers Settlement Account .. .. .. 13,500,000 £24,725,645 Interest earned by this amount is credited to the Consolidated Fund as a set-off to the amount paid into the Public Debt Repayment Account under the provisions of the Act —viz., \ per cent, of the public debt outstanding which comes under the Act, and 4 per cent, of the debt redeemed in accordance with the Act. LOANS FOR STATE ADVANCES AND OTHER PURPOSES. As shown above, the amount of £6,346,955 was borrowed last year for State advances purposes. £2,000,000 of this was included in the London loan of 1925. Apart from other small loans the Government, in order to provide funds to meet arrears of applications for State advances, placed a s|-per-cent. issue on the market. Up to the 31st March, £4,233,705 had been received for State advances, of which about one-half came from overseas investors, as below : — New Zealand .. .. .. .. .. £2,086,205 Overseas .. .. .. .. .. £2,147,500 In addition to the above, £650,000 was raised under this issue for public works and hydro-electric purposes. The issue is still open to the public. After allowing for expenses, the money is expected to cost about £5 10s. Bd. per cent, per annum.

Assets held against debt. Allocation of debt.

Sinking funds and debt repayment.

Loans for State advances, &e.

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14

1926 PUBLIC WORKS LONDON LOAN. At the end of May, London advised that, the general strike having been called off, a resumption of the lending market was at hand, though the position was, in view of the continuance of the coal strike, still reported to be somewhat uncertain as to terms obtainable. It was, however, decided to proceed, and a loan of £6,000,000 under the following authorities was underwritten : — £ Finance Act, 1925 (public works) .'. . . .. 4,000,000 Electric-power Works Loan Act, 1919 (electric supply) 1,100,000 Railways Improvement Authorization Act, 1914 (railways improvement) .. .. .. 900,000 £6,000,000 It was issued to the public on the 31st May at £98 10s. ; interest 5 per cent., maturing on the Ist January, 1946 ; the yield to investors being £5 2s. 6d. The result was in all the circumstances somewhat surprising as the application list was closed in two hours, the sum of £119,600,000 from 24,059 applicants having been offered, while the loan subsequently went to a premium. FUNDED DEBT. Payments amounting to £1,651,930 were made in 1925-26 in respect of £27,532,164, loans advanced by the Imperial Government, and funded in terms of the agreement dated 6th September, 1922. The half-yearly payments represent both principal and interest, and the following table shows how this debt has been reduced to £26,257,022 :■ —

Public Works Loan, 1926.

Funded debt.

New Zealand has the right, on giving three months' notice, to repay at par any part of the principal. PUBLIC DEBT COMMISSION. The Public Debt Commission, constituted under the Repayment of the Public Debt Act, passed last session, held its first meeting early in March of this year for the purpose of formulating the policy to be adopted in the matter of debt-repayment and to set in motion the machinery provided under the statute. The amount available for debt-repayment for the financial year ended 31st March last was £872,734, and the Commission applied this in discharging from the debt securities purchased from time to time at a discount, together with further suitable securities held by Treasury Investment Accounts. Securities of a total nominal value of £889,733 were accordingly cancelled and redeemed. As opportunity offers for purchase of securities on favourable terms, it is the intention of the Commission to apply its resources to the reduction of deadweight and overseas debt. .Details of the transactions affecting the debt coming under the provisions of the Act will be available to honourable members in the statement and account of the proceedings of the Commission to be laid on the table of the House.

Public Debt Commission.

r l i t> ■ ■ 1 Balance of Debt Instalment paid. Interest. Principal. outstanding £ £ £ 1st December, 1922 .. 684,794 141,171 27,390,993 1st June, 1923 681,282 144,683 27,246,310 1st December, 1923 .. .. .. .. 677,684 148,281 27,098,029 1st June, 1924 .. .. .. .. 673,996 151,969 26,946,060 1st December, 1924 .. .. .. .. 670,216 355,749 26,590,311 1st June, 1925 .. .. .. .. 661,367 164,598 26,425,713 1st December, 1925 .. 657,274 168,691 26,257,022

15

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POST AND TELEGRAPH DEPARTMENT. The revenue of the Post and Telegraph Department paid over to the Consolidated Fund amounted to £3,077,735. Of this amount, the Postal Branch accounted for £1,414,081 ; telegrams, £371,251 ; toll messages, £312,120 ; and telephone-exchange receipts, £980,283. The telephone-exchange receipts show an increase over those for the previous year of about £113,000. The net expenditure out of the vote Post and Telegraph Working-expenses amounted to £2,406,791. There was thus a net excess of receipts over payments of £670,944, which is available to cover the interest on the loan capital of the Department. The presentation of the balance-sheet will, however, show the actual results on a commercial basis. The Post Office Savings-bank figures show an improvement over those for the previous year. There was in 1924-25 an excess of withdrawals over deposits of £830,712, whereas in 1925-26 the deposits amounted to £31,833,621 and the withdrawals to £32,602,506, an excess of withdrawals over deposits of £768,885. The position is still improving, as since the end of the year the amount of deposits has exceeded the amount of withdrawals. On the 31st March there were 758,188 depositors, and the total amount at their credit, exclusive of interest for the year, was £46,179,744. Money-orders and postal-notes issued totalled in value £5,907,171, and those paid £5,528,814. The first issue of Post Office investment certificates, in November, 1920, matured in November, 1925, and the redemptions to the end of March totalled £175,254. I would have expected to find a greater use by the public of this excellent form of small investment. STATE ADVANCES OFFICE. During the year £6,371,375 was added to the Capital Fund of the State Advances Office, which on the 31st March, 1926, totalled £33,148,274. The additional loanmoney provided has been used largely by farmers to establish themselves in permanent and profitable occupation of their lands, and by workers to provide homes for themselves and their families. The total advances current at the 31st March, 1926, were £30,296,837, being an increase on the previous year of £4,638,977. Owing to the high rate the Office has had to pay for the last few years for borrowed money, the Department during the year was obliged to increase the rates of interest payable on new loans. Although this has been done, the Department has assisted mortgagors to meet the increase by extending the terms of their loans, the result being that the half-yearly instalments payable under present rates amount to very little more than what borrowers were previously called upon to pay. The advances actually paid over during the year numbered 6,063 and amounted to £6,269,403. If proof of the assistance rendered to settlers and workers in regard to their financial needs be required, these figures amply furnish it. The new business for the year was as follows :-••• ■vr Amount. JNumber. £ Loans granted to settlers .. .. 4,747 5,409,310 Loans granted to workers .. 3,303 2,763,644 Loans granted to local authorities .. 112 157,520 8,162 £8,330,474 As in the previous year, a very large sum of money was provided last year for redemption of mortgages, and since the month of October, 1922, when it was decided to grant advances for this purpose, 9,833 loans have been granted, amounting to £12,030,265. The resources of the Office have been thus largely used to meet the demand for homes throughout the Dominion, and for advances to redeem existing mortgages on farm lands, but it is unlikely that new capital will be available to the same extent as in the last three years.

Post and Telegraph Department.

State Advances Office.

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RURAL CREDITS. The importance of improving financial conditions for primary producers, and the desirability of acquiring for our guidance the best available information on the subject, led in September last to the appointment of a Royal Commission consisting of Colonel J. J. Esson, C.M.G., Financial Adviser to the Government, Mr. P. H. Cox, an experienced banker, and Mr. W. J. Poison, a practical farmer. The Commission has visited all the most important countries and investigated the conditions governing land mortgage and agricultural banking. I expect the report will shortly be available, and have no doubt the inquiries and findings of the Commission will be of great value in promoting the well-being of the producers and of the country as a whole. Honourable members are aware that the Directors of the Bank of New Zealand have proposed to establish a branch of business on the long-term tablemortgage system to assist in developing and improving the conditions of the primary producers. Until the report of the Royal Commission is in the Government's hands, it is not proposed to take any steps in connection with legislation dealing with agricultural banking and finance. 1926 27, In setting out before honourable members the estimated position in the current year, there are first of all several broad considerations affecting the question of taxation and revenue tbat I will briefly refer to. As I have shown earlier in this Statement, the absorption of direct and indirect taxation by social and educational services shows considerable proportionate increase as compared with pre-war conditions, while the cost of defence is rising rapidly. These items bring before us some outstanding facts directly affecting taxation. It is, of course, always a question for Government consideration, and particularly since the war, what relief can be given to the taxpayer ? Further substantia] relief from taxation cannot be expected so long as the war-debt services have to be borne —an unescapable burden —which, combined with largely increasing social services, retard any movement in the direction of lessened taxation. In certain quarters there will no doubt be some criticism of the fact that I have not seen my way to recommend any reductions in taxation this year, but I am strongly of opinion that, the uncertain outlook in trade and finance calls for the utmost caution. Moreover, the various legislative proposals of the Government to be given effect to this year will impose considerably heavier charges on the Consolidated Fund, and this consideration applies particularly to the proposed scheme for assistance to large families. Indeed, it is possible that it may become necessary to raise additional money, but I am hopeful that the revenue will remain sufficiently buoyant to avoid this. Furthermore, I do not think it wise to make any changes in the incidence of taxation which may have the effect of yielding a lesser tax revenue this year. At any rate, so far as the proposal taxation of individual shareholders for company taxation is concerned,! think further consideration of this matter must remain in abeyance until the data now being collected is complete. I am also anxious to continue as long as possible the practice of applying surplus revenue to war-debt reduction, and I do no think relief from taxation at the cost of impairing that policy is advisable. I intend to ask for authority to transfer up to £1,000,000 to the Public Works Fund as ways and means permit. ESTIMATED REVENUE. I have given the most thorough consideration to all the expected variations or conditions likely to arise in the next twelve months, and I estimate the total revenue receipts into the Ordinary Revenue Account at £24,266,200. This is based on the present rates of land and income tax and the expected reduction in Customs revenue resulting from trade-balance adjustments. The expanding business of the Post and Telegraph Department will provide increased receipts.

Rural credits.

Long-term mortgages.

Position regarding taxation.

Estimate oi revenue.

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Estimates of Revenue. £ Customs .. .. .. .. .. .. .. 7,650,000 Beer duty .. .. .. .. .. .. • • 630,000 Stamp and death, duties .. .. .. .. •• 3,189,250 Postal and Telegraph .. . . .. .. .. 3,290,000 Land-tax .. .. .. .. .. . - -• 1 ~200,000 Income-tax .. .. .. .. .. .. 3,300,000 Registration and other fees .. .. .. . . .. 200,000 Marine .. .. .. .. .. .. .. 112,000 Interest on public moneys .. .. .. .. • - 600,000 Interest on railway capital liability .. .. .. .. 2, 050,000 Interest on Public Debt Redemption Fund .. .. .. 1,102,000 Local Bodies' Loans Act, 1908, section 76 .. .. .. 20,000 Rents of buildings .. .. .. .. .. . . 25,000 Tourist and Health Resorts .. .. .. .. 57,250 Miscellaneous .. .. .. .. .. • ■ • • 50,000 Territorial .. .. .. .. .. .. - 205,000 Departmental and other receipts .. .. .. .. 585,700 Total .. .. .. .. .. £24,266,200 ESTIMATED EXPENDITURE. In submitting the estimates of expenditure, I may state that some months ago the Government appointed a Committee of Departmental Heads to investigate expenditure and scrutinize the preliminary estimates of Departments. The Committee's recommendations were duly considered by the Government in framing these estimates. The estimated expenditure is £23,986,616. The sum is £416,533 in excess of the actual expenditure of last year, a good indication that the control over vote expenditure is well maintained when it is remembered that this increase covers extension of naval establishment, education expansion, and also Departments whose increases are met by corresponding revenue receipts. The estimated expenditure under— £ Permanent charges is .. .. .. .. 13,693,759 Annual appropriations .. .. .. 10,292,857 Total .. .. .. .. .. £23,986,616 ESTIMATED RESULTS. I anticipate, therefore, that the position, provided no obligations of a substantial nature due to unemployment or to new legislation, fall on the Account during the present financial year, will be :— £ Revenue .. « .. .. .. 24,266,200 Expenditure .. .. .. .. .. 23,986, 616 Balance .. .. .. .. £279,584 * This amount will, I estimate, cover supplementary estimates, but will leave very little margin; and, either way, the ultimate result will depend a great deal on the uncertain factor of imports. 4 —B. 6.

Estimated expenditure.

Estimated results

8.—6.

18

Conclusion,

In view of the reference in His Excellency's Speech as to the policy proposals of the Government, I have found it unnecessary in $this Statement [to devote fany space to these matters. There are some difficulties ahead of us, the principal one —that of our trade balance —touches, of course, our primary industries, but the effect, I predict, will only be temporary, and matters will adjust themselves in due course. With regard to our secondary industries, I regret to state that some of these are not in a flourishing condition. The Government is now considering how far it may be necessary to render assistance during the present session to certain industries that are most seriously affected, but it is not proposed to make any general revision of the tariff this year.

B.—6.

19

SUMMARY OF RESULTS AND PROPOSALS. RESULTS, 1925-26. Consolidated Fund— Ordinary Revenue Account— £ Revenue .. .. .. .. .. .. 24,725,762 Expenditure .. .. .. .. .. .. 23,570,083 Surplus, 1925-26 .. .. .. .. .. £1,155,679 £ Balance forward at 31st March., 1926 .. .. .. .. 4,428,092 Transferred from accumulated surpluses to —- Public Works Fund .. .. .. .. .. 500,000 Working Railways Account .. .. .. .. 473,392 Loans Redemption Account .. .. .. .. 414,000 No revenue Treasury bills outstanding. Establishment of Working Railways Account. Repayment of the Public Debt Act passed. Establishment of Public Debt Redemption Fund. Customs and excise— £ Revenue to Consolidated Fund .. .. .. .. 9,013,435 Increase over 1924-25 .. .. .. .. .. 793,662 £ Imports for financial year .. .. .. 53,025,856 Exports for financial year .. .. .. 48,697,587 Total trade .. .. .. •• 101,723,443 Excess of imports over exports .. .. .. .. 4,328,269 Inland revenue— Land-tax .. .. .. • • • • • • 1,266,659 Income-tax .. .. .. •• •• •• 3,368,516 Stamp and death duties .. .. .. .. •. 3,359,868 Post and Telegraph— £ Receipts .. .. .. .. 3,077,735 Expenditure .. .. .. .. 2,406,791 Excess of receipts .. .. .. 670,944 Post Office|Savings-bank— Number of depositors, 758,188. £ Amount at credit.. .. .. .. .. 46,179,744 Reparation-moneys received from Germany .. .. .. 186,227 Payments on account of pensions .. .. .. .. 2,480,155 Capital expenditure on Public Works .. .. .. .. 7,180,479 Capital reductions following on revaluations under Discharged Soldiers Settlement Acts .. .. .. .. .. .. 2,545,238 Closing of New Zealand Consols Account. Settlement of transactions relating to the New Zealand Expeditionary Forces and the Australian Forces in Egypt. £ Interest for the year on the £2,000,000 Reserve Fund in London .. 90,550

8.—6.

20

Public debt — £ Gross debt at 31st March, 1926 .. .. .. .. 238,855,478 Subdivided— £ Ordinary.. .. .. .. 125,992,741 War .. .. .. .. 75,333,648 State advances .. .. .. 27,771,153 Discharged soldiers settlement .. 9,757,936 £238,855,478 £ New loans raised during the year ~ .. 13,374,539 Loans paid off during the year .. .. 2,333,708 ■ £ Net increase on gross debt .. .. .. .. 11,040,831 Net annual charge at 31st March, 1926 .. .. .. 9,454,887 Assets held against debt increased by .. .. .. 13,875,734 Allocation of miscellaneous debt. £ Capital of Public Debt Redemption Fund .. .. .. 24,725, 645 sf-per-cent. loan for State Advances and other purposesReceipts to 31st March, 1926 .. .. .. .. 4,883,705 Imperial funded debt — £ Total amount funded 6th September, 1922 .. 27,532,164 Less paid off .. .. .. .. 1,275,142 Outstanding 31st March, 1926 .. .. .. .. £26,257,022 £ Nominal value of securities redeemed by Public Debt Commission .. 889,733 State Advances Office — Capital increased by .. .. .. .. .. 6,371,375 Total capital, 31st March, 1926 .. .. .. .. 33,148,274 Total current advances .. .. .. .. .. 30,296,837 ESTIMATES AND PROPOSALS, 1926-27. Consolidated Fund— Ordinary Revenue Account — £ Estimated revenue .. .. .. .. .. 24,266,200 Estimated expenditure .. .. .. .. 23,986,616 Available for supplementary estimates .. .. .. £279,584 £ Estimated Customs and excise revenue .. .. .. .. 8,280,000 Estimated stamp and death duties .. .. .. .. 3,189,250 Estimated land and income tax .. .. .. .. 4,500,000 5-per-cent. London Loan for Public Works issued at £98 10s. (oversubscribed) . . .. .. .. .. .. 6,000,000 Transfer to Public Works Fund up to .. .. .. 1,000,000 Increased provision for naval defence. Further facilities for temporary investment of surplus cash balances. Report of Royal Commission on rural credits. Consideration of legislation relative to long-term mortgage scheme. Assistance to large families. Continued application of surplus revenue to reduction of war debts. Position of certain secondary industries under investigation.

8.—6

TABLES TO ACCOMPANY THE FOREGOING STATEMENT. Page Table No. 1. —Abstract of Receipts and Expenditure op the Financial Year ended 31st March, 1926. See Parliamentary Paper 8.-l [Part I]. Table No. 2.—The Public Debt on 31st March, 1926. See Parliamentary Paper 8.-l [Part lII], Table No. 3.—Revenue for the Year ended 31st March, 1926, compared with the Year ended 31st March, 1925 .. .. .. .. .. .. .. .. ii Table No. 4.—Comparative Statement of the Estimated and Actual Revenue of the Consolidated Fund (Ordinary Revenue Account) for the Financial Year ended 31st March, 1926 .. .. .. .. .. .. .. .. .. .. ii Table No. s.—Estimated Revenue for 1926-27, compared with the Actual Revenue for 1925-26 .. iii Table No. 6. —■Comparative Statement of Stamp and Death Duty Revenue for 1924-25 and 1925-26 iii Table No. 7.—Statement of the Actual Expenditure of the Consolidated Fund (Ordinary Revenue Account) for the Financial Year ended 31st March, 1926, compared with the Year ended 31st March, 1925 .. .. .. .. .. .. iv Table No. B.—Comparative Statement of the Appropriated and Actual Expenditure of the Consolidated Fund (Ordinary Revenue Account) for the Financial Year ended 31st March, 1926 .. ... ... „ .. .. .. .. vi Table No. 9. —Estimated Expenditure for 1926-27, compared with the Actual Expenditure for 1925-26 .. .. .. .. .. .. .. ... .. vii Table No. 10.—Statement showing how Accumulated Surpluses have been applied .. .. viii Table No. 11.—Statement of the Estimated Liabilities of the Consolidated Fund outstanding on 31st March, 1915 to 1926 inclusive .. ... .. .. .. ix Table No 12. —Public Works Fund—Statement showing Net Expenditure under Appropriations for the Year ended 31st March 1926, compared with the Year ended 31st March, 1925 .. x Table No. 13.—Statement showing the Total Ways and Means of the Public Works Fund and the Total Net Expenditure to 31st March, 1926 .. .. .. .. xi Table No, 14.—Statement ofthe Estimated Liabilities of the Public Works Fund outstanding on 31st March, 1915 to 1926 inclusive .. .. .. .. . . .. xiii Table No. 15.—Statement of the Estimated Liabilities of the various Separate Accounts outstanding on 31st March, 1915 to 1926 inclusive .. .. .. .. xiv Table No. 16. —Receipts and Payments of Accounts, 1925-26, with Balances at Ist April, 1925, and 31st March, 1926 .. .. .. .. .. •• .. xv Table No. 17. —Statement showing the available Financial Resources of the various Accounts on the 31st March, 1925, as compared with .the 31st March, 1926 .. ... .. xvi Table No. 18. —Summary of the Public Debt and of the State Assets which may be set off against it, as at 31st March, 1926 .. .. ... ... .. .. xvii Table No. 19. —Statement showing the Amount charged to "Unauthorized" in each Financial Year from Ist April, 1900, to 31st March, 1926 .. .. .. .. .. xix Table No. 20.—Education Expenditure—Total Expenditure on Education out of Public Funds since 1913-14 .. .. .. .. •• •• .. .. ..xx Table No. 21.—New Zealand. —Statistical Comparisons for a Decennial Period .. .. xxi

i—B. 6.

B—6.

II

Table No. 3. Revenue for the Year ended 31st March, 1926, compared with the Year ended 31st March, 1925.

Table No. 4. Comparative Statement of the Estimated and Actual Revenue of the Consolidated Fund (Ordinary Revenue Account) for the Financial Year ended 31st March, 1926.

S Year ended Year ended 31st March, 31st March, Increase. Decrease. 1926. 1925. £ £ £ £ Customs .. .. .. .. .. 8,383,877 7,569,389 814,488 Beer duty.. .. . .. .. 629,558 650,384 .. 20,826 Stamp and death duties .. .. .. 3,359,868 3,240,332 119,536 Postal and telegraph .. .. .. 3,077,735 2,706,882 370,853 Land-tax .. .. .. .. .. 1,266,659 1,335,251 .. 68,592 Income-tax .. .. .. .. 3,368,516 3,386,052 .. 17,536 Registration and other fees .. .. .. 195,681 189,346 6,335 Marine .. .. .. .. .. 106,696 105,060 1,636 Interest on railway capital liability .. .. 1,913,311 1,468,523* 444,788 Interest on public moneys .. .. .. 605,061 1,188,120 ) „„„ Interest on Public Debt Redemption Fund .. 897,756 .. 1 ' Local Bodies'Loans Act, 1908, sec. 76 .. .. 19,961 22,201 .. 2,240 Rents of buildings .. .. .. .. 23,571 23,266 305 Tourist and Health Resorts .. .. .. 56,734 48,669 8,065 Miscellaneous .. .. .. .. 48,998 231,534 .. 182,536 Territorial .. .. .. .. 202,429 211,749 .. 9,320 Departmental receipts .. .. .. 518,709 518,998 .. 289 Recoveries on account expenditure of previous 50,642 110,661 .. 60,019 years 2,080,703 361,358 361,358 Total revenue .. .. .. 24,725,762 23,006,417 1,719,345 * Difference between railway receipts and payments shown on either side of accounts last year.

Estimate for Actual for I Difference. ~ 1925-26.* 1925-26. j More. Less. £ £ £ £ Customs .. .. .. .. .. 7,800,000 8,383,877 583,877 Beer duty.. .. .. .. .. 630,000 629,558 .. 442 Stamp and death duties .. .. .. 3,290,800 3,359,868 69,068 Postal and telegraph .. .. .. 3,046,000 3,077,735 31,735 Land-tax .. .. .. .. .. 1,250,000 1,266,659 16,659 Income-tax .. .. .. .. 3,200,000 3,368,516 168,516 Registration and other fees .. .. .. 190,000 195,681 5,681 Marine .. .. .. .. .. 104,800 106,696 1,896 Interest on railway capital liability .. .. 1,910,000 1,913,311 3,311 Interest on public moneys .. .. .. 1,190,000 605,061 ) 019017 Interest on Public Debt Redemption Fund .. .. f 897,756 J ' Local Bodies'Loans Act, 1908, sec. 76 22,000 19,961 .. 2,039 Rents of buildings .. .. .. .. 24,000 23,571 .. 429 Tourist and Health Resorts .. .. .. 53,000 56,734 3,734 Miscellaneous .. .. .. .. 56,000 48,998 .. 7,002 Territorial.. .. .. .. .. 212,000 202,429 .. 9,571 Departmental and other receipts .. .. 631,400 569,351 .. 62,049 1,197,294 81,532 81,532 Totals .. .. .. .. 23,610,000 24,725,762 1,115,762 * Amended in accordance with legislation passed and reductions in taxation made during 1925 session of Parliament. f Partly included in estimate for interest on public moneys, but additional revenue received as a result of passing of Repayment of Public Debt Act, 1925.

8.—6

III

Table No. 5. Estimated Revenue of the Consolidated Fund (Ordinary Revenue Account) for 1926-27, compared with the Actual Revenue received for 1925-26.

Table No. 6. Comparative Statement of Stamp and Death Duty Revenue for 1924-25 and 1925-26.

Estimate Actual Differences. for for 1926-27. 1925-26. Increase. Decrease. Obdinary Revenue Account. £ £ £ £ Customs .. .. .. .. .. .. 7,650,000 8,383,877 .. 733,877 Beer Duty .. .. .. .. .. .. 630,000 629,558 442 Stamp and Death Duties .. .. .. .. 3,189,250 3,359,868 .. 170,618 Postal and Telegraph .. .. .. .. .. 3,290,000 3,077,735 212,265 Land-tax .. .. .. .. .. •• 1,200,000 1,266,659 .. 66,659 Income-tax .. .. .. .. .. .. 3,300,000 3,368,516 .. 68,516 Registration and other Pees .. .. .. .. 200,000 195,681 4,319 Marine .. .. .. .. .. .. 112,000 106,696 5,304 Interest on Public Moneys .. .. .. .. 600,000 605,061 .. 5,061 Interest on Railway Capital Liability .. .. .. 2,050,000 1,913,311 136,689 Interest on Public Debt Redemption Pund .. .. 1,102,000 897,756 204,244 Local Bodies'Loans Act, 1908, Section 76 .. .. 20,000 19,961 39 Rents of Buildings .. .. .. .. .. 25,000 23,571 1,429 Tourist and Health Resorts .. .. .. .. 57,250 56,734 516 Miscellaneous.. .. .. .. .. .. 50,000 48,998 1,002 Territorial .. .. .. .. .. -• 205,000 202,429 2,571 Departmental Reoeipts .. .. .. .. .. 533,700 518,709 14,991 Recoveries on aooount Expenditure of previous Years .. 52,000 50,642 1,358 585,169 1,044,731 585,169 Total .. .. .. .. 24,266,200 24,725,762 .. 459,562

I Item. 1924-25. j 1925-26. ■ Decrease. Increase. £ £ £ £ Adhesive stamps .. .. 82,437 104,956 .. 22,519 Duty on instruments .. 620,198 604,675 15,523 Death duty (estate and sue- 1,447,147 1,433,193 13,954 cession duty) Gift duty .. 73,602 50,996 22,606 Impressed stamps and com- 80,262 167,288 .. 87,026 muted duty on banks' cheques Company licenses .. 63,134 65,948 .. 2,814 Bank-note duty .. .. 197,626 203,264 .. 5,638 Duties payable by racing clubs 590,385 659,642 .. 69,257 Amusements-tax .. .. 78,877 64,162 14,715 Native-land rates .. 527 215 312 Penalties .. .. 5,055 4,967 88 Miscellaneous .. .. 1,082 562 520 67,718 187,254 67,718 3,240,332 3,359,868 ... 119,536

8.—6

IV

Table No. 7. Statement of the actual Net Expenditure of the Consolidated Fund (Ordinary Revenue Account) for the Financial Year ended 31st March, 1926, compared with the Financial Year ended 31st March, 1925.

| Year ended Year ended 31st March, 31st March, Increase. Decrease. 1926. 1925. Permanent Appropriations— £ £ £ £ Civil List .. .. ... .. 29,084 29,781 .. 697 Interest.. .. .. .. .. 8,129,799 7,865,262 264,537 Sinking Fund and Public Debt repayment .. 879,734 690,076 189,658 Reduction of Funded Debt .. .. 332,632 307,306 25,326 Under special Acts — Advances to other Governments .. .. 19,832 Cr. 59,598 79,430 Education purposes .. .. .. 111,389 128,844 .. 17,455 Endowments .. .. .. .. 5,556 5,261 295 Miscellaneous .. .. .. .. 116,610 150,274 .. 33,664 Pensions— Old-age .. .. .. .. 863,751 767,792 95,959 Widows' .. .. .. .. 285,654 235,959 49,695 Military .. .. .. .. 23,087 26,836 .. 3,749 War .. .. 1,179,552 1,242,182 .. 62,630 Miners' .. .. .. .. 37,705 35,948 1,757 Various .. '.. .. .. 31,430 27,742 3,688 Salaries and honoraria .. .. .. 97,730 97,911 .. 181 *Subsidies paid to Hospital Boards .. 593,777 561,708 32,069 Subsidies on rates paid to-local authorities 212,190 203,185 9,005 Subsidies to Superannuation Funds and 199,129 223,835 .. 24,706 National Provident Fund Territorial revenue .. .. .. 13,457 13,207 250 Transfer to Discharged Soldiers' Settlement 50,000 50,000 Loans Act, 1920, Depreciation Fund Account Transfer to Main Highways Account, Re- .. 35,000 .. 35,000 venue Fund Loan to New Zealand and South Seas 30,000 .. 30,000 Exhibition Railways: Losses on branch lines and isolated 344,830 .. 344,830 sections — . —————— 13,586,928 12,638,511 1,126,499 178,082 ♦Subsidy under Hospital and Charitable Institutions Acts for Jubilee Institute for the Blind is included under Education purposes.

8.—6.

V

Table No. 7—continued. Statement of the actual Net Expenditure of the Consolidated Fund (Ordinary Revenue Account) for the Financial Year ended 31st March, 1926, compared with the Financial Year ended 31st March, 1925 —continued.

Y ear ended Y ear ended ! 31st March, 31st March, j Increase, i Decrease. 1926. 1925. j Annual Appropriations— £ £ £ £ Legislative Departments .. .. .. 88,467 62,109 26,358 Treasury Department .. .. .. 36,372 51,953 .. 15,581 Land and Income Tax Department .. .. 65,941 50,406 15,535 Stamp Duties Department .. .. 90,733 85,905 4,828 National Provident and Friendly Societies De- 22,529 22,430 99 partment Post and Telegraph working expenses .. 2,406,791 2,413,436 .. 6,645 Public buildings .. .. .. .. 98,235 107,086 .. 8,851 Government and other domains .. .. 5,763 5,786 .. 23 Maintenance and repairs to roads .. .. 89,016 36,337 52,679 Maintenance of irrigation works .. .. 5,031 2,226 2,805 Native Department .. .. .. 29,293 27,996 1,297 Department of External Affairs .. .. 25,597 40,601 .. 15,004 Cook Islands .. .. .. .. 30,083 21,386 8,697 Department of Industries and Commerce .. 105,372 114,161 .. 8,789 Department of Justice .. .. .. 135,777 131,217 4,560 Prisons Department .. .. .. 73,695 76,366 ... 2,671 Crown Law Office .. .. .. 4,982 5,535 .. 553 Police Department .. .. .. 408,035 399,289 8,746 Pensions Department .. .. .. 182,857 94,448 88,409 Mines Department .. .. .. 46,697 38,028 8,669 Department of Internal Affairs .. .. 374,436 305,640 68,796 Audit Department .. .. .. 24,240 23,368 872 Public Service Commissioner's Office .. 7,862 6,058 1,804 Printing and Stationery Department .. 236,698 204,268 32,430 Mental Hospitals Department .. .. 272,204 244,331 27,873 Department of Health .. .. .. 264,000 229,032 34,968 Naval Defence .. .. .. .. 441,203 283,356 157,847 Defence Department .. .. .. 459,293 370,906 88,387 Customs Department .. .. .. 156,374 156,188 186 Marine Department .. .. .. 122,001 119,463 2,538 Department of Labour .. .. .. 49,683 45,472 4,211 Department of Lands and Survey .. .. 176,887 168,442 8,445 Scenery Preservation .. .. .. 20,543 2,981 17,562 Valuation Department .. .. .. 51,785 49,349 2,436 Electoral Department .. .. .. 101,709 7,334 94,375 Department of Agriculture .. .. 292,193 255,125 37,068 Department of Tourist and Health Resorts .. 70,794 66,294 4,500 Department of Education .. .. .. 2,879,719 2,777,271 102,448 Services not provided for .. .. .. 30,265 22,527 7,738 9,983,155 9,124,106 917,166 58,117 2,043,665 236,199 236,199 Total expenditure (permanent and 23,570,083 21,762,617 1,807,466 annual appropriations)

8.—6

VI

Table No. 8. NET EXPENDITURE. Comparative Statement of the Appropriated and Actual Expenditure of the Consolidated Fund (Ordinary Revenue Account) for the Financial Year ended 31st March, 1926.

„ . a i i ht j- Difference. Net Actual Net — Appropriations, Expenditure, j 1925-26. 1925-26. More Jjjs3 . Permanent Charges— £ £ £ £ Civil List.. .. .. .. .. 29,800 29,084 .. 716 Interest .. .. .. .. .. 8,049,164 8,129,799 80,635 Funded-debt repayment .. .. .. 332,845 332,632 .. 213 Sinking Fund .. .. .. .. 686,972 7,000 \iqo 7fi9 Repayment of public debt .. .. .. .. 872,734 / Under special Acts.. .. .. .. 3,752,073 4,215,679 463,606 12,850,854 13,586,928 737,003 929 Annual Appropriations,— Legislative Departments .. .. .. 88,909 88,467 .. 442 Treasury Department .. .. .. 36,668 36,372 .. 296 Land and Inpome Tax Dejjartment .. .. 74,191 65,941 .. 8,250 Stamp Duties Department .. .. .. 99,947 90,733 .. 9,214 National Provident and Friendly Societies De- 23,348 22,529 .. 819 partment Post and Telegraph, working-expenses .. 2,493,222 2,406,791 .. 86,431 Public buildings .. .. .. .. 125,780 98,235 .. 27,545 Government and other domains .. .. 8,545 5,763 .. 2,782 Maintenance and repairs to roads .. .. 150,150 89,016 .. 61,134 Maintenance of irrigation works .. .. 10,000 5,031 .. 4,969 Native Department .. .. .. 34,110 29,293 .. 4,817 Department of External Afiairs .. .. 25,989 25,597 .. 392 Cook Islands .. .. .. .. 37,923 30,083 .. 7,840 Department of Industries and Commerce .. 97,024 105,372 8,348 Department of Justice .. .. .. 140,649 135,777 .. 4,872 Prisons Department .. .. .. 84,766 73,695 .. 11,071 Crown Law Office .. .. .. .. 5,841 4,982 .. 859 Police Department.. .. .. .. 420,012 408,035 .. 11,977 Pensions Department .. .. .. 194,329 182,857 .. 11,472 Mines Department.. .. .. .. 51,970 46,697 .. 5,273 Department of Internal Afiairs .. .. 410,735 374,436 .. 36,299 Audit Department.. .. .. .. 28,037 24,240 .. 3,797 Public Service Commissioner's Office .. .. 8,681 7,862 .. 819 Printing and Stationery Department.. .. 228,175 236,698 8,523 Mental Hospitals Department .. .. 296,982 272,204 .. 24,778 Department of Health .. .. .. 269,946 264,000 .. 5,946 Naval Defence 449,082 441,203 .. 7,879 Defence Department .. .. .. 455,368 459,293 3,925 Customs Department .. .. .. 160,321 156,374 .. 3,947 Marine Department .. .. .. 127,748 122,001 .. 5,747 Department of Labour .. .. .. 52,780 49,683 .. 3,097 Department of Lands and Survey .. .. 180,207 176,887 .. 3,320 Scenery Preservation .. .. .. 24,789 20,543 .. 4,246 Valuation Department .. .. .. 51,070 51,785 715 Electoral Department .. .. .. j 97,119 101,709 4,590 Department of Agriculture .. .. .. 375,824 292,193 .. 83,631 Department of Tourist and Health Resorts .. 70,705 70,794 89 Department of Education .. .. .. 2,889,773 2,879,719 .. 10,054 Services not provided for .. ... .. .. 30,265 30,265 10,380,715 9,983,155 56,455 454,015 793,458 454,944 454,944 Total expenditure .. .. 23,231,569 23,570,083 338,514

8.—6

VII

Table No. 9. Estimated Expenditure of the Ordinary Revenue Account for 1926-27, compared with Actual Expenditure for 1925-26.

Estimate Actual , Differences. for for i 1926-27. i 1925-26. j j ncreaae . Decrease. Revenue Account. Permanent Charges,— £ £ £ £ Civil List .. .. .. .. .. .. 80,020 29,084 936 Interest .. .. .. .. .. .. 8,176,905 8,129,799 47,106 Funded Debt Repayment .. .. .. .. 349,608 332,632 16,976 Sinking Fund .. .. .. .. .. 2,882 7,000 .. 4,118 Repayment of Public Debt .. .. .. .. 925,492 872,734 52,758 Under special Acts .. .. .. .. .. 4,208,852 4,215,679 .. 6,827 13,693,759 13,586,928 117,776 10,945 Annual Appropriations,— — Legislative Departments .. .. .. .. 85,540 88,467 .. 2,927 Treasury Department .. .. .. .. 36,144 36,372 .. 228 Land and Income Tax Department .. .. .. 59,612 65,941 .. 6,329 Stamp Duties Department .. .. .. .. 97,983 90,733 7,250 National Provident and Friendly Societies Department .. 23,897 22,529 1,368 Post and Telegranh Working-expenses.. .. .. 2,496,929 2,406,791 90,138 Public Buildings .. .. .. .. .. 130,327 98,235 32,092 Government and other Domains .. .. .. 6,983 5,768 1,220 Maintenance and repairs to Roads .. .. .. 124,000 89,016 34,984 Maintenance of Irrigation Works .. .. .. 9,000 5,031 3,969 Native Department .. .. .. .. .. 34,038 29,293 4,745 Department of External Affairs .. .. .. 24,094 25,597 .. 1,503 Cook Islands .. .. .. .. .. 26,972 30,083 .. 3,111 Department of Industries and Commerce .. .. 41,157 • 105,372 .. 64,215 Department of Justice .. .. .. .. 138,796 135,777 3,019 Prisons Department .. .. .. .. .. 90,911 73,695 17,216 Crown Law Office .. .. .. .. .. 6,280 4,982 1,298 Police Department .. .. .. .. .. 418,109 408,035 10,074 Pensions Department .. .. .. .. 180,913 182,857 .. 1,944 Mines Department .. .. .. .. .. 52,925 46,697 6,228 Department of Internal Affairs .. .. .. 338,961 374,436 .. 35,475 Audit Department .. .. .. .. .. 28,629 24,240 4,389 Public Service Commissioner's Office .. .. .. 8,586 7,862 724 Printing and Stationery Department .. .. .. 236,263 236,698 .. 435 Mental Hospitals Department .. .. .. 330,086 272,204 57,882 Department of Health .. .. .. .. 267,428 264,000 3,428 Naval Defence .. .. .. .. .. 533,828 441,203 92,625 Defence Department.. .. .. .. .. 471,535 459,293 12,242 Customs Department .. .. .. .. 171,366 156,374 14,992 Marine Department .. .. .. .. .. 127,158 122,001 5,157 Department of Labour .. .. .. .. 52,937 49,683 3,254 Department of Lands and Survey .. .. .. 173,018 176,887 .. 3,869 Scenery Preservation.. .. .. .. .. 7,165 20,543 .. 13,378 Valuation Department .. .. .. .. 49,183 51,785 .. 2,602 Electoral Department .. .. .. .. 6,330 101,709 .. 95,379 Department of Agriculture .. .. .. .. 354,722 292,193 62,529 Department of Tourist and Health Resorts .. .. 75,670 70,794 4,876 Department of Education .. .. .. .. 2,975,382 2,879,719 95,663 Services not provided for .. .. .. .. .. 30,265 .. 30,265 10,292,857 9,983,155 571,362 261,660 689,138 272,605 272,605 Total expenditure .. .. ..'£23,986,616 £23,570,083 £416,533

8.—6.

Table No. 10. Statement showing how Accumulated Surpluses have been applied. To Accumulated surpluses £ By Transfers to — £ £ at 31st March, 1925 .. 28,047,479 Discharged Soldiers Settlement Surplus for financial year Account — 1925-26 .. .. 1,155,679 1920-21 .. .. 13,330,000 Net miscellaneous receipts 1921-22 .. .. 170,000 credited to Ordinary — 13,500,000 Revenue Account dur- Discharged Soldiers Settlement ing 1925-26 .. .. 1,541 Depreciation Fund AcReparation - moneys re- count — ceived from Germany 186,227 1920-21 .. .. 50,000 1921-22 .. .. 50,000 1922-23 .. .. 50,000 1923-24 .. .. 50,000 200,000 Public Works Fund — 1920-21 .. .. 500,000 1923-24 .. .. 1,000,000 1924r-25 .. .. 1,000,000 1925-26 .. .. 500,000 3,000,000 Reserve Fund Securities Account — For purchase of securities, 1920-21 .. .. 1,200,000 For redemption of loan, 1922-23 .. .. 800,000 — 2,000,000 Loans redemption — 1921-22 .. .. 560,011 1922-23 .. .. 2,337,360 1923-24 .. .. 1,367,341 1924-25 .. .. 1,052,130 1925-26 .. .. 566,161* — 5,883,003 Education Loans Account, 1923-24 .. 100,000 Ordinary revenue— To balance revenue and expenditure, 1921-22 .. .. .. 279,831 Investments at 31st March, 1926 — £ State Advances securities 445,000 Bank of New Zealand shares 750,000 Fixed deposit with Bank 200,000 Sundry Treasury securities 463,574 1,858,574 Balance (cash and imprests) at 31st March, 1926 .. .. ..2,569,518 £29,390,926 £29,390,926 * Includes £151,824 of reparation-moneys received from Germany.

VIII

IX

8.—6

Table No. 11. Statement of the Estimated Liabilities chargeable on the Consolidated Fund (Revenue Account) outstanding on the 31st March, each Year from 1915 to 1926.

ii—B. 6.

! ! i I 1915. 1916. 1917. 1918. j 1919. 1920. 1921. j 1922. j 1923. 1924. 1925. 1926. Revenue Account. ££££££££££ ££ Permanent Appropriations, — Civil List .. .. .. .. .. .. 144 3,200 84 54 24 .. 148 232 186 185 161 313 Under Special Acts of the Legislature .. .. .. 8,615 15,508 1,013 2,351 2,746 4,739 7,168 37,669 27,710 13,667 15,411 13,435 Pensions .. .. .. .. .. .. .. 73 .. 270 312 498 594 413 243 2,756 796 701 8,759 18,781 1,097 2,675 3,082 5,237 7,910 38,314 28,139 16,608 16,368 14,449 Annual Appropriations,— Legislative Departments .. ... .. .. 247 400 84 956 958 30 1,818 3,856 439 349 752 1,007 Departments of Minister of Finance* .. .. .. 397 393 1,589 7,708 33,828 10,992 51,929 3,981 3,914 3,744 7,502 11,064 Working Railways .. .. .. .. .. 157,575 113,679 129,112 136,976 170,311 262,551 408,363 182,645 195,627 263,254 332,985 « Post and Telegraph Department .. .. .. 79,467 63,474 65,245 81,068 88,463 174,127 125,013 115,335 97,079 l'14, 961 104,383 93,919 Public Buildings, Domains, Maintenance of Roads, and ( 9,195 6,281 4,964 | .. Qri . ... .. D „. 1K onri ..... Maintenance of Irrigation Works .. .. .. \ 6,156 3i435 5,877 \ 14,463 11,131 20,400 16,078 11,364 14,644 14,364 15,899 17,315 Justice Department! .. .. .. .. .. 6,707 7,044 6,863 10,227 8,692 8,137 20,885 13,012 14,463 11,498 10,462 19,258 Mines Department .. .. .. .. .. 6,847 .. .. .. .. 1,300 2,455 1,350 1,358 868 2,087 2,371 Internal Affairs Department} .. .. .. 14,656 10,792 19,572 20,796 33,587 16,115 32,600 59,835 27,211 29,525 26,186 61,038 Defence Department§ .. .. .. .. .. 25,369 20,409 7,792 17,292 20,288 5,637 6,396 28,256 12,340 28,715 55,459 94,392 " !! !! } 1 ' 23i X ' 249 3 ' 351 5 > 144 6 > 119 2 ' 284 *' 082 4 ' 487 3 > 937 4 ' 02 7 4,857 9,198 Labour Department .. .. .. .. .. 466 570 890 1,057 447 362 1,344 2,302 752 961 2,200 1,148 Lands Department .. .. .. .. .. 2,625 1,696 1,915 1,105 2,999 829 4,528 5,835 3,123 2,686 1,971 1,840 Agriculture Department .. .. .. .. 3,134 6,500 4,060 8,016 50,173 2,061 14,988 50,951 9,393 48,830 11,178 35,103 Education Department .. .. .. .. 13,862 41,060 20,332 14,196 18,585 4,122 11,616 25,963 22,520 22,200 10,414 10,405 Valuation and Electoral Departmental! .. .. .. .. .. .. .. 1,244 1,471 642 2,306 3,052 1,897 1,277 2,337 327,937 276,982 271,646 319,004 446,825 510,418 702,737 511,478 409,852 547,879 587,612 360,395 Services not provided for .. .. .. .. .. .. .. 87 .. .. • 6 .. .. .. .. 112 Refunds of Revenue .. .. .. .. .. .. .. .. .. .. .. .. .. 3,873 .. 37 1,344 Totals .. .. .. .. ..336,696 295,763 272,743 321,766 449,907 515,655 710,653 549,792 441,864 564,487 604,017 376,300 | . * Includes Treasury, Land and Income Tax, Stamp Duties, and National Provident Fund and Friendly Societies Departments. t Includes Native, External Affairs, Supreme and Magistrates' Courts, Prisons, Police, Cook Islands, and Crown Law. ; Includes Audit, Printing and Stationery, Public Service Commissioner's Office, Mental Hospitals, Pensions, Scenery Preservation (1925-26), and Health Departments. § Includes Naval Defence. II Includes Industries and Commerce and Tourists Departments. H Previous to 1918-19 Valuation Department was included in Lands Department and Electoral Department was included in Internal Affairs Department. ** Now a separate account (See Table No. 15).

8.—6

X

Table No. 12. PUBLIC WORKS FUND. Statement showing the Net Expenditure under Appropriations for the Year ended 31st March, 1926, compared with the Year ended 31st March, 1925.

v^ a Year ended Year ended ™ „ ote# 31st March, 1926. 31st March, 1925. Increase. Decrease. * I £ £ £ £ Public Works, Departmental .. .. 126,475 127,493 1,018 Railway-construction .. .. .. 1,146,292 1,135,807 10,485. Additions to Open Lines .. .. 842,322 742,922 99,400 Public Buildings— General .. .. .. .. 29,369 30,791 .. 1,422 Courthouses .. .. .. 7,209 5,363 1,846 Prison Buildings and Works .. .. 24,196 J 25,279 .. 1,083 Police-stations .. .. .. 16,594 18,553 .. 1,959 Postal and Telegraph.. .. .. 89,866 65,917 23,949 Agricultural .. .. .. 7,932 3,242 4,690 Mental Hospital Buildings .. .. 77,834 68,438 9,396 Health and Hospital Institutions .. 31,177 28,235 2,942 Timber-supply and Sawmills, &c. .. Cr, 9,893 Cr. 20,537 10,644 Acquisition and Operation of Quarries .. 12,351 1,815 10,536 Lighthouses .. .. .. .. 5,691 2,852 2,839 Harbour-works .. .. .. 3,717 423 3,294 Development of Tourist Resorts .. .. 43,486 12,343 31,143 Department of Immigration .. .. 107,521 136,353 .. 28,832 Roads, &e. .. .. .. .. 564,694 603,968 .. 39,274 Roads on Goldfields .. .. 3,934 2,755 1,179 Telegraph Extension .. .. .. 931,661 957,294 .. 25,633 Motor Transport Services .. .. 4,994 5,000 .. 6 Contingent Defence .. .. .. 89,670 27,133 62,537 Lands, Miscellaneous .. .. .. 70,493 34,172 36,321 Irrigation, Water-supply, and Drainage .. 56,227 127,995 .. 71,768 Plant, Material, and Stores .. .. 33,453 Cr. 12,229 45,682 Services not provided for .. .. 1,139 63 1,076 357,959 170,995 170,995 Totals .. .. .. 4,318,404 4,131,440 186,964

8.—6

XI

Table No. 13. STATEMENT showing the Total Ways and Means of the Public Works Fund, General Purposes Account, and the Total Net Expenditure to the 31st March, 1926.

WAYS AND MEANS. Loans :— £ s. d. £ s. d. Immigration and Public Works Loan, 1870 .. .. .. 4,000,000 0 0 Immigration and Public Works Loan, 1873 .. ... .. 2,000,000 0 0 Immigration and Public Works Loan, 1874 .. .. .. 4,000,000 0 0 General Purposes Loan Act, 1873 .. .. .. .. 750,000 0 0 New Zealand Loan Act, 1876 .. .. .. .. .. 750,000 0 0 New Zealand Loan Aot, 1877 .. .. .. .. .. 2,200,000 0 0 New Zealand Loan Act, 1879 .. .. .. .. .. 5,000,000 0 0 New Zealand Loan Act, 1882 .. .. .. .. .. 3,000,000 0 0 New Zealand Colonial Inscribed Stock Loan Act, 1882 .. .. 250,000 0 0 North Island Main Trunk Railway Loan Act, 1882 .. .. 1,000,000 0 0 New Zealand Loan Act, 1884 .. .. .. .. .. 1,500,000 0 0 New Zealand Loan Aot, 1886 .. .. .. .. .. 1,325,000 0 0 District Railways Purchasing Acts, 1885 and 1886 .. .. 479,487 7 11 New Zealand Loan Aot, 1888 .. .. .. .. .. 1,000,000 0 0 Native Land Purchase Aot, 1892 .. .. .. .. 149,700 0 0 Lands Improvement and Native Acquisition Act, 1894 .. 500,000 0 0 Aid to Public Works and Land Settlement Act, 1896 .. .. 1,000,000 0 0 Aid to Public Works and Land Settlement Amendment Aot, 1897 .. 250,000 0 0 Aid to Public Works and Land Settlement Amendment Act, 1898 .. 500,000 0 0 Aid to Public Works and Land Settlement Act, 1899 .. .. 1,000,000 0 0 Aid to Publio Works and Land Settlement Aci, 1900 .. .. 1,011,600 0 0 Aid to Public Works and Land Settlement Act, 1901 .. .. 1,250,000 0 0 Aid to Publio Works and Land Settlement Act, 1902 .. .. 1,750,000 0 0 Aid to Public Works and Land Settlement Act, 1903 .. .. 997,640 0 0 Aid to Publio Works and Land Settlement Act, 1904 .. .. 750,000 0 0 Aid to Public Works and Land Settlement Act, 1905 .. .. 1,000,000 0 0 Aid to Public Works and Land Settlement Aot, 1906 .. .. 989,700 0 0 Aid to Publio Works and Land Settlement Act, 1907 .. .. 1,000,000 0 0 Aid to Public Works and Land Settlement Act, 1908 .. .. 1,250,000 0 0 Aid to Publio Works and Land Settlement Act, 1909 .. .. 1,000,000 0 0 Aid to Public Works and Land Settlement Act, 1910 .. .. 1,750,000 0 0 Aid to Public Works and Land Settlement Aot, 1911 .. .. 1,500,000 0 0 Aid to Public Works and Land Settlement Aot, 1912 .. .. 1,748,900 0 0 Aid to Publio Works and Land Settlement Aot, 1913 .. .. 1,750,000 0 0 Aid to Public Works and Land Settlement Aot, 1914 .. .. 3,000,000 0 0 Aid to Publio Works and Land Settlement Act, 1921 .. .. 5,061,081 18 2 Aid to Public Works and Land Settlement Act, 1922 .. .. 4,408,904 7 6 Finance Aot, 1909 .. .. .. .. .. .. 1,250,000 0 0 Finance Aot, 1915, and New Zealand Loans Aot, 1915 .. .. 2,000,000 0 0 Finance Act, 1916 .. .. .. .. .. .. 1,000,000 0 0 Finance Aot, 1917 .. .. .. .. .. .. 850,000 0 0 Finance Aot, 1918 (No. 2) .. .. .. .. .. 2,500,000 0 0 Finance Act, 1919, Seotion 5 .. .. .. .. .. 750,000 0 0 Finance Aot, 1920, Section 15 .. .. .. .. .. 2,499,100 0 0 Finance Act, 1921, Section 10 .. .. .. .. .. 2,673,061 10 11 Finance Aot, 1923, Section 2 .. .. .. .. 4,306,626 17 7 Finance Aot, 1924, Section 2 .. .. .. .. 2,065,893 1 11 Post and Telegraph Act, 1908 . . .. .. .. .. 200,000 0 0 Midland Railway Petitions Settlement Acts, 1902 and 1903 .. 150,000 0 0 Paeroa-Waihi Railway Aot, 1903 .. .. .. .. 75,000 0 0 Waikaka Branch Railway Aot, 1905 .. .. .. .. 50,000 0 0 Wellington and Manawatu Railway Purchase Act, 1908 .. .. 1,000,000 0 0 Appropriation Act, 1912 .. .. .. .. .. 15,000 0 0 Irrigation and Water-supply Act, 1913 .. .. .. .. 100,000 0 0 82,356,695 4 0 Receipts in Aid:— Amount transferred from Consolidated Fund .. .. .. 14,305,000 0 0 Contributions of Canterbury Province for Railways .. .. 56,000 0 0 Proceeds of Railway Material handed over to Cook County Council 4,963 7 4 Stamp Duties to 31st December, 1876 .. .. .. .. 264,657 16 4 Transfer from Confiscated Lands Liabilities Account .. .. 19,963 1 3 Receipts under Section 16 of the Reserves and other Lands Disposal and Public Bodies Empowering Act, 1912 .. .. .. 21,890 4 5 Special Receipts under Section 9 of the Railways Construction Act, 1878 .. .. .. .. .. .. .. 60,616 3 0 Special Receipts under the Ellesmere Lake Lands Acts, 1888 and 1893 61,964 7 6 Special Receipts under the Railways Authorization and Management Act, 1891 .. .. .. .. .. .. 2,257 1 9 Special Receipts under the North Island Main Trunk Railway Loan Application Act, 1886 .. .. .. .. .. 114,550 19 6 Sinking Funds released .. .. .. .. .. 506,819 19 3 — 15,418,683 0 4 £97,775,378 4 4

XII

8.—6

Table No. 13 —continued. STATEMENT showing the Total Ways and Means of the Public Works Fund, General Purposes Account, and the Total Net Expenditure to the 31st March, 1926—continued.

NET EXPENDITURE. Expenditure on— £ s. d. £ s. d. Immigration .. .. .. .. .. .. .. 2,932,490 13 9 Public Works, Departmental .. .. .. .. .. 2,293,023 1 9 Railways, including Surveys of New Lines and payment to Midland Railway Bondholders.. .. .. .. .. .. 48,381,119 4 11 Roads .. .. .. .. .. r. .. .. 15,684,081 9 6 Land-purchases .. .. .. .. .. .. 2,061,738 9 4 Development of Mining .. .. .. .. .. .. 882,975 0 11 Telegraph Extension .. .. .. .. .. .. 8,108,366 0 5 Public Buildings .. .. .. .. .. .. 9,604,987 9 1 Lighthouses, Harbour Works and Defences .. .. .. 1,206,691 13 3 Contingent Defence .. .. .. .. .. .. 1,208,131 17 3 Rates on Native Lands .. .. .. .. .. .. 68,671 16 10 Thermal Springs .. .. .. .. .. .. 14,599 13 2 Development of Tourist Resorts .. .. .. .. .. 392,627 11 7 Lands Improvement .. .. .. .. .. .. :-)00,150 17 6 Plant, Material, and Stores .. .. .. .. .. 384,631 0 7 Charges and Expenses of raising Loans .. .. .. .. 2,339,953 13 5 Coal-mines .. .. .. .. .. .. .. 10,835 8 0 Interest and Sinking Fund .. .. .. .. .. 218,500 0 0 Irrigation and Water-supply .. .. .. .. .. 677,407 18 1 Timber Supply, Sawmills, &c. .. .. .. .. .. 4,172 5 9 Acquisition and operation of quarries .. .. .. .. 14,166 12 8 Motor Transport Service .. .. .. .. .. 33,635 5 3 Transfer to Main Highways Account, Construction Fund .. .. 226,000 0 0 97,248,957 3 0 Balanoe on 31st March, 1926, — Cash in the Public Account .. .. .. .. .. 366,331 4 7 Imprests outstanding .. .. .. .. .. .. 101,089 16 9 Investments .. .. .. .. .. .. .. 59,000 0 0 526,421 1 4 £97,775,378 4 4

B. fi

XIII

Table No. 14. Statement of the Estimated Liabilities chargeable on the Public Works Fund (General Purposes Account), outstanding on the 31st March each Year from 1915 to 1926.

I i I I 1915. 1916. 1917. 1918. 1919. 1920. 1921. 1922. 1923. 1924. 1925. 1926. Annual Appropriations — ££££££££££££ Public Works, Departmental .. .. .. .. 1,930 710 1,316 691 973 869 .. 562 513 503 1,033 1,768 Railways .. .. .. .. .. .. 417,718 293,522 233,271 150,492 229,397 240,240 818,593 456,402 261,910 269,090 455,534 99,592 Irrigation and Water-supply .. .. .. .. .. .. 1,424 681 1,360 4,322 3,257 4,591 3,512 11,257 6,257 2,406 Public Buildings .. .. .. .. .. 175,041 188,640 150,935 117,774 71,646 64,969 112,904 56,944 93,346 18,752 19,571 19,521 Timber-supply, &c. .. .. .. .. .. .. .. .. .. .. .. 1,734 141 865 557 81 Acquisition and Operation of Quarries .. .. .. .. .. .. .. .. .. .. .. .. .. 3,228 2,011 Lighthouses, Harbour- works, and Harbour-defences .. 133 53 140 56 .. 49 550 3,918 91 74 591 Development of Tourist Resorts .. .. .. .. 1,642 1,217 190 70 4,250 187 2,182 78 493 776 1,137 6,697 Immigration ». .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 33,179 Roads .. .. .. .. .. .. 250,195 174,220 116,564 129,710 156,409 304,313 393,226 211,209 257,731 142,565 48,734 54,859 Development of Mining .. .. .. .. .. 500 .. .. .. .. .. 682 Telegraph Extension .. .. .. .. .. 247,114 11,468 .. 10,888 15,907 266,273 463,843 385,109 360,027 488,989 539,812 214,007 Contingent Defence .. .. .. .. .. 289 .. 113 510 321 Lands, Miscellaneous .. .. .. .. .. 399 35 .. .. .. .. 1,926 1,202 1,166 1,819 3,621 Plant, Material, and Stoies .. .. .. .. .. 7,801 2,980 13,962 38,621 72,898 138,698 24,498 16,136 5,638 2,947 4,292 Electric Supply* .. .. .. .. .. .. .. .. .. 372 Totals .. .. .. .. .. 1,094,961 677,666 506,933 424,834 519,256 j 954,071 1,933,434 1,143,603 998,929 939,692 1,080,703 442,625 * Now a separate account.

8.—6.

XIV

Table No. 15. Statement of the Estimated Liabilities chargeable on the undermentioned Separate Accounts outstanding on the 31st March each Year from 1915 to 1926.

1915. 1916. 1917. 1918. 1919. 1920. 1921. 1922. 1923. 1924. 1925. 1926. I I I I ££££££££££££ Aid to Water-power Works Account .. .. .. 12,919 22,861 28,778 Cheviot Estate Aocount .. .. .. .. .. .. .. .. .. .. .. .. .. 393 Deteriorated Lands Account .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 117 Disoharged Soldiers Settlement Account .. .. .. .. .. 3,169 Education Loans Account .. .. .. .. .. .. .. .. .. .. 9,510 1,692 144 9,274 2,774 2,214 Deposits Account (Education Reserves Amendment Act, 1914) .. .. ... .. .. .. .. .. .. .. .. .. .. .. 583 .. 222 3 Eleotric Supply Account .. .. .. .. .. .. .. 18,603 16,673 102,991 355,636 299,214 344,075 37,734 75,743 87,856 Government Accident Insurance Aocount .. .. .. 279 316 141 219 192 273 210 397 322 289 14 956 Government Life Insuranoe Account .. .. .. 645 366 348 253 460 678 600 3,741 2,011 1,214 2,849 1,142 Hauraki Plains Settlement Aocount .. .. .. 165 101 144 130 371 118 4,211 7,544 4,079 2,741 2,099 1,808 Housing Account .. .. .. .. .. .. .. ... .. .. 1,631 8,477 Irrigation and Water-supply Account .. .. .. 6,740 3,705 .. .. .. .. Kauri-gum Industry Account .. .. .. .. 188 1,354 738 2,525 1,808 3,761 J .. 45 65 441 Land for Settlements Account .. .. .. .. 3,452 2,452 .. 311 165 516 526 982 5 49 1,096 1,143 Land for Settlements Account (Disoharged Soldiers Settlement Account) .. .. .. .. .. .. .. .. .. .. 175 1,565 I 1,282 826 136 456 238 Land for Settlements Account (Opening up Grown Lands for Settlement Account) .. .. .. .. 14,362 5,843 9,874 .. 14,594 193 4,253 ; 6,584 83 47 20 2,799 Main Highways Account — Revenue Fund .. .. .. .. .. .. .. .. .. .. .. •• •• 3 15,047 73,703 Construction Fund .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 17,328 81,847 National Endowment Account .. .. .. .. 4,862 3,177 1,680 .. .. .. .. .. 187 .. 1,113 1,005 Native Land Settlement Account .. .. .. 1,294 1,106 433 17 12,151 673 1,426 2,717 1,880 1,611 1,008 542 Native Trustee's Account .. .. ... .. .. .. .. .. .. .. .. j .. 268 61 20 57 Nauru and Ocean Islands Account .. .. .. .. .. .. .. .. .. .. 22,870 515 Public Service Superannuation Fund Aocount .. .. .. .. .. .. .. .. j 296 364 389 345 23 Railways Improvement Authorization Act 1914 Account .. .. 215,792 97,296 34,692 15,734 20,096 7,388 11,768 16,603 22,529 45,992 42,083 Rangitaiki Land Drainage Account .. .. .. 118 116 29 414 189 459 1,081 j 2,768 956 594 2,621 448 Scenery Preservation Account* .. .. .. .. 131 .. .. .. .. .. 29 484 28 State Advances Acoount .. .. .. .. .. 331 361 362 572 291 708 615 623 2,636 4,502 : 2,648 2,699 State Coal-mines Account .. .. .. .. .. 10,000 .. 10,000 11,000 17,800 22,000 22,200 14,540 10,631 6,302 4,930 State Fire Insurance Account .. .. .. .. 820 1,072 1,069 19 85 314 19 78 .. 15 503 202 State Forests Account .. .. .. .. .. 287 153 .. 125 60 .. 5,067 4,486 4,032 3,240 3,152 13,455 Swamp Land Drainage Account ... .. .. .. .. .. 61 267 310 163 684 3,453 3,409 3,233 864 1,174 Telegraph Extension Account .. .. .. .. .. .. 16,138 Waihou and Ohinemuri Rivers Improvement Account .. 4,558 283 6,298 8,066 4,853 500 1,877 5,298 11,004 1,522 2,496 2,954 Waimarino Bush-fire Relief Acoount .. .. .. .. .. .. .. 2,696 War Expenses Account .. .. .. .. .. 596,710 916,436 3,415,111 5,415,000 3,948,625 2,216,349 603,000 724,278 579,976 182,409 Wellington-Hutt Railway and Road Improvement Account .. 200 Westport Harbour Account .. .. .. .. .. .. .. .. .. .. .. .. 498 526 ' 464 612 Working Railways Acoount. f .. .. .. .. .. .. .. .. .. .. .. .. j .. 309,278 j * Now a vote under Consolidated Fund. t Formerly vote under Consolidated Fund.

8.—6

XV

Table No. 16. Receipts and Payments of Accounts, 1925-26, with Balances at 1st April, 1925, and 31st March, 1926.

Balance, 31st March, Balance, Credits N t 1926i Account. 1st April, Receipts. in T3vr.fTirllt.m-P 1925. Reduction, expenditure. In Cash. i nvestme nts. Consolidated Fund — ££££££ Ordinary Revenue .. .. .. 4,150.806 26,763,839 3,897,193 26,486,553 2,569,518 1,858,574 State Coal Mines .. .. .. 22,074 235,690 1,395 239,192 1,072 17,500 State Coal-mines Sinking Fund .. 41,669 6,530 .. .. 319 47,880 Nauru and Ocean Islands .. .. 41,717 37,766 .. 76,357 3,126 Nauru and Ocean Islands Sinking Fund 13,539 6,630 .. 20,150 19 Accounts of Local Bodies .. .. 10,562 22,458 .. 22,556 10,464 Deposits .. .. .. .. 417,157 1,698,524 .. 1,762,081 8,170 345,450 Public Works Fund —- General Purposes .. .. .. 379,439 5,388,070 753,061 5,241,088 467,421 59,000 Waihou and Ohinemuri Rivers Improve- 273 72,209 1,297 50,772 21,710 ment Electric Supply .. .. .. 229,248 1,121,065 36,588 1,212,201 48,112 90,000 Electric Supply Sinking Fund .. .. 12,108 5,283 .. •• 1 17,390 Advances to other Governments .. 437 332,064 .. 300,989 31,512 Bank of New Zealand Acta .. .. 875,000 .. .. ,. .. 875,000 Cheviot Estate .. .. .. 223,950 26,332 .. 45,376 73,686 131,220 Conversion .. .. .. .. 6,074 .. .. 6,074 Deteriorated Lands .. .. .. .. 2,000 .. 272 1,728 Discharged Soldiers Settlement .. .. 178,011 1,613,381 28,778 1,665,118 26,455 99,819 Discharged Soldiers Settlement Loans Act 271,735 61,876 .. 38,564 18,197 276,850 1920 Depreciation Fund Education Loans .. .. .. 126,455 478,650 6,225 5)4,950 40,155 General Purposes Relief .. .. 18,169 6,067 .. 2,922 6,314 15,000 Hauraki Plains Settlement .. .. 5,907 92,575 10,546 64,976 33,506 Howard Estate .. .. .. .. 243 .. 243 Hunter Soldiers' Assistance Trust .. 2,543 663 .. 127 334 2,750 Kauri-gum Industry .. .. .. 2,435 15,525 69 14,518 3,442 Land Assurance Fund .. .. .. 86,699 4,181 .. 10,121 2,359 78,400 Land for Settlements .. .. .. 60,903 556,935 24,816 484,670 6,168 127,000 Land for Settlements (Discharged Soldiers 7,632 81,088 4,283 17,447 21,273 50,000 Settlement) Land for Settlements (Opening up Crown 4,183 27,746 13 25,327 6,602 lands) ■ Loans Redemption .. .. .. 66,962 31,378,615 .. 31,427,068 18,509 Main Highways Revenue Fund .. .. 531,373 376,432 5,228 303,196 2,609 652,000 Main Highways Construction Fund .. 546 592,014 15,967 472,456 30,104 90,000 Mining Advances .. .. .. 11,857 789 .. •• 2,646 10,000 National Endowment .. .. .. 126,655 149,332 .. 149,494 26,393 100,100 National Endowment Trust .. .. 16,637 5,342 .. 1,773 516 19,690 Native Land Settlement .. .. 158,012 118,968 159 172,649 41,331 63,000 New Zealand Consols .. .. .. 475,992 .. .. 475,992 Public Accounts Cash Balance Investment .. 486,000 .. 4 86,000 Public Debt Repayment .. .. .. 872,734 .. 870,638 2,096 Railways Improvement Authorization Aet, 577,601 542,643 23,088 839,582 43,762 236,900 1914" Rangitaiki Land Drainage .. .. 49,013 1,153 1,038 25,982 4,184 20,000 Reserve Fund .. .. .. 2,000,000 .. .. •• .. 2,000,000 Samoan Loan Suspense .. .. .. 15,000 .. 15,000 State Advances Loan .. .. .. 344,786 6,518,080 .. 4,5-0,177 151,474 2,141,215 State Forests .. .. .. .. 169,400 171,465 1,545 213,004 2,361 125,500 Swamp Land Drainage .. .. .. 32,866 36,044 650 56,408 12,502 War Expenses.. .. .. .. 8,480 25,599 6,363 34,079 Westport Harbour .. .. .. 55,315 56,921 62 42,215 21,521 48,500 Working Railways .. .. .. .. 8,693,115 574,793 7,894,965 623,150 175,000 Totals .. .. .. 11,864,225 88,697,636 5,393,157 88,403,302 4,384,821 9,773,738

8.—6

XVI

Table No. 17. Statement showing the available Financial Resources of the various Public Accounts on the 31st March, 1925, as compared with the 31st March, 1926.

1925. 1926. Account. Balance LiabUities Balance Liabilities fXrftoto 31st March, 31st March, 31st March, 31st March, ™ IS !!? t g fe? 1925. 1925. ° n i925 PrU ' 1926. 1926. on ijga Consolidated Fund— £ £ £ £ £ £ Ordinary Revenue .. .. 4,150,806 604,017 .. 4,428,092 376,300 State Coal-mines .. .. .. 22,074 6,302 55,000 18,572 4,930 55,000 State Coal-mines Sinking Fund .. 41,669 .. .. 48,199 Nauru and Ocean Islands .. .. 41,717 .. .. 3,126 Nauru and Ocean Islands Sinking Fund 13,539 .. .. 19 Public Works Fund—• General Purposes .. .. 379,439 1,080,703 4,000,920 526,421 442,625 4,061,050 Waihou and Ohinemuri Rivers Im- 273 2,496 164,000 21,710 2,954 95,000 provement Electric Supply .. .. .. 229,248 75,743 6,506,990 138,112 87,856 5,676,990 Electric Supply Sinking Fund .. 12,108 .. .. 17,391 Advances to other Governments .. 437 .. .. 31,512 Bank of New Zealand Acts .. .. 875,000 .. .. 875,000 Cheviot Estate .. .. .. 223,950 .. .. 204,906 Conversion.. .. .. .. 6,074 .. .. .. .. Deteriorated Lands .. .. .. .. .. .. 1,728 117 98,000 Discharged Soldiers Settlement .. 178,011 .. 862,750 126,274 .. 862,750 Discharged Soldiers Settlement Loans Act 271,735 .. .. 295,047 1920 Depreciation Fund Education Loans .. .. .. 126,455 2,774 1,586,770 40,155 2,214 1,108,120 General Purposes Relief .. .. 18,169 .. .. 21,314 Hauraki Plains Settlement .. .. 5,907 2,099 70,000 33,506 1,808 25,000 Hunter's Soldiers Assistance Trust .. 2,548 .. .. 3,084 Kauri-gum Industry .. .. 2,435 65 .. 3,442 441 Land Assurance Fund .. .. 86,699 .. .. 80,759 Land for Settlement .. .. 60,903 1,096 500,000 133,168 1,143 500,000 Land for Settlements — Discharged Soldiers Settlement .. 7,632 456 1,500,000 71,273 238 1,500,000 Opening-up Crown Lands for Settlement 4,183 ' 20 250,000 6,602 2,799 250,000 Loans to Employers for Workers' Dwel- .. .. 250,000 lings Loans Redemption .. .. .. 66,962 .. .. 18,509 Main Highways— Revenue Fund .. .. .. 581,373 15,047 .. 654,609 73,703 Construction Fund .. .. 546 17,328 3,000,000 120,104 81,847 2,500,000 Mining Advances .. .. .. 11,857 .. 50,000 12,646 .. 50,000 National Endowment .. .. 126,655 1,113 .. 126,493 1,005 National Endowment Trust .. .. 16,637 .. .. 20,206 Native Land Settlement .. .. 158,012 1,008 500,000 104,331 542 500,000 Public Debt Repayment .. .. .. .. .. 2,096 Railways Improvement Authorization 577,601 45,992 1,458,310 280,662 42,083 958,310 Act, 1914 Rangitaiki Land Drainage .. .. 49,013 2,621 15,000 24,184 448 15,000 Reserve Fund .. .. .. 2,000,000 .. .. 2,000,000 Samoan Loan Suspense .. .. .. .. 5,000 .. .. 22,000 State Forests .. .. .. 169,400 3,152 3,225 127,861 13,455 3,225 Swamp Land Drainage .. .. 32,866 864 150,000 12,502 1,174 150,000 War Expenses .. .. .. 8,480 .. 4,467,360 •• 4,467,360 Westport Harbour .. .. .. 55,315 464 .. 70,021 612 Working Railways .. .. .. .. .. .. 798,150 309,278 New Zealand Consols .. .. 475,992 State Advances .. .. .. 659,853 2,648 9,714,250 2,469,687 2,699 9,964,250 Additional Unexhausted Authorities for raising Loans. Hutt Railway and Road Improvement .. .. 3,320 .. • • 3,320 Acts, 1903, 1905, 1907, 1910 Government Railways Amendment Act, .. .. 55,470 .. •• 55,470 1910 Finance Act, 1917, sec. 77 (Discharged .. .. 1,000,000 .. •• 1,000,000 Soldiers Settlement) Naval Defence Act, 1909 (inoperative).. .. .. 299,400 .. •• 299,400 Land Act, 1924 (waste lands) .. .. .. 1,000,000 .. •• Government Accident Insurance Act, 1908 .. .. 23,000 • ■ • • 23,000 State Fire Insurance Act, 1908 .. .. .. 98,000 .. .. 98,000 Totals .. .. 11,751,573 1,866,008 37,588,765 13,971,473 1,450,271 35,341,245

13.-6

XVII

Table No. 18. Summary of Public Debt and of the State Assets which may be set off against it, as at 31st March, 1926, together with Supporting Schedule showing Details of Assets. Debt. £ Ordinary debt .. .. .. .. .. •• .. .. 125,992,741 War debt .. .. .. •• •• •• •• •• 75,333,648 State Advances debt .. .. .. .. .. . ■ .. .. 27,771,153 Discharged soldiers debt .. .. .. .. •• •• .. 9,757,936 Surplus assets over debt .. .. ■ .. ■ • . • 8,864,938 £247,720,416 Assets. £ Cash and investments (Reserve Funds, Bank of New Zealand shares, Public Debt Redemption Fund, &c.) .. .. .. . . .. .. .. 38,193,015 Sinking funds accrued .. .. .. .. .. .. . ■ 2 ,274,262 Loans and advances outstanding (Discharged Soldiers, State Advances, &c.) .. .31,957,624 Revenue Earning and Trading Accounts (Railways, Telegraphs, &c.) .. .. . 68,959,878 Lands and forests (Crown lands, State forests, &c.).. .. .. .. .. 72,615,656 Indirectly productive expenditure — £ Roads and public buildings, &c. .. .. .. . • 30,787,490 Immigration .. .. .. .. •• • 2,932,491 33,719,981 £247,720,416 Details of Assets included above. (Note ; Stores or supplies in hand not included in assets.) Cash and Investments :— *Cash in the Public Account and in the hands of officers of the £ £ £ Government .. .. •• •• 4,362,072 fLess liabilities outstanding, 31st March, 1925 .. .. 1,435,882 2,926,190 *Investment of cash balances .. .. .. .. •• 5,738,018 Reserve fund (securities at cost) .. .. .. •• •• 1,928,162 Post Office Savings-bank Reserve Fund .. .. .. .. 1,000,000 Bank of New Zealand shares (nominal value) .. .. ... 1,875,000 {Public Debt Redemption Fund .. .. .. .. .. 24,725,645 38,193,015 Sinking funds accrued — State Advances debt .. •• .. •• •• •• 2,017,348 State Coal-mines .. •• •• •• •• •• 48,199 Westport Harbour loans .. •• •• •• 186,558 Samoan loan .. .. • • • ■ • • • ■ • • 4,747 Nauru and Ocean Islands Sinking Fund Account .. ... .. 19 Electric Supply Sinking Fund Account .. .. .. .. 17,391 — 2,274,262 Loans and advances outstanding — Mining purposes .. •• •• •• 33,015 Local bodies (annuity value of interest receivable) .. .. .. 1,075,000 Samoan (loan, less sinking fund) .. .. •• 105,253 Repatriation advances outstanding, 31st March, 1926 .. .. 407,016 Discharged soldiers'mortgages and property held .. ..18,493,481 Less amount included in Public Debt Redemption Fund .. 13,500,000 4,993,481 State Advances—Mortgages and property held, less sinking funds and investments included elsewhere .. .. .. .. 25,292,359 General purposes relief—Advances outstanding .. .. .. 51,500 31,957,624

* Does not include trust, deposit, or sinking funds, or certain other accounts inoluded elsewhere. f After deducting £13,948, credits due from other Governments. x Includes £13,500,000 previously inoluded under discharged soldiers mortgages, and £11,225,645 of accumulated sinking funds.

iii—B. 6.

8.—6

XVIII

Details of Assets included above —continued. Revenue Earning and Trading Accounts— £ Railways (capital cost, including unopened lines and value of assets taken over from provinces) .. .. .• •• •• 53,716,455 Telegraphs (value of assets) .. .. .. •• «• 7,311,422 Pacific cable (estimated value of Dominion's interest) .. •• 100,000 Electric-power supply and development (capital cost) .. . • 4,740,425 Westport Harbour-works (value of assets) .. •• •• 585,195 Lighthouses and harbour-works (capital expenditure) .. •• 1,206,692 Tourist and health resorts (capital expenditure) .. .. • • 407, 228 State coal-mines (value of assets) .. . ■ ■ • ■ • 242,421 Kauri-gum (trading capital) .. .. •• •• •• 85,000 Nauru and Ocean Islands (purchase price of rights) .. •• 565,040 vF F — — 68,959,878 Lands and forests— Crown lands (estimated value, including settlement lands, Native lands, and education reserves) .. .. •• •• 31,552,178 Land-drainage schemes (capital invested) .. .. •• •• 1,306,070 Irrigation and water-supply (capital expenditure) .. • ■ ■ • 677,408 Waihou and Ohinemuri Rivers improvement (capital expenditure) .. 482,489 Lands improvements (capital expenditure) .. •• 300,151 Samoan Crown Estates (value of Dominion's interest) .. • • 662, 360 Howard Estate .. .. .. .. •• •• 75,000 State forests (estimated value of forests, reserves, plantations, and nurseries) .. .. .. .. •• •• 37,560,000 — — 72,615,656 Indirectly productive expenditurePublic buildings (including school buildings) .. . • •• 12,067,784 Roads (including roads on Crown lands and main highways).. .. 17,818,392 Timber-supply, sawmills, &c. (capital invested) .. .. •• 4,172 Quarries (acquisition and working) .. .. •• •• 14,167 Development of mining (capital expenditure) .. • • • ■ 882,975 Immigration (capital expenditure; .. .. •• •• 2,932.491 — 33,719,981 £247,720,416

B6

XIX

iv—B. 6,

Table No. 19. Statement showing the Amount charged to "Unauthorized" in each Financial Year from 1st April, 1900, to 31st March, 1926.

Consolidated Fund.—Revenue Account. _ _ . _ . . Other Public Works m nTAT Financial Year. Accounts. Fund. Ser^d e ea n f 0 or pr °" Excess of Votes. Total. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. j 1900-1901.. .. 26,367 18 6 62,788 3 2 89,156 1 8 662 7 7 17,518 3 7 ;107,336 12 10 1 1901-1902.. .. 3,836 7 0 68,866 10 9 72,702 17 9 253 8 10 6,955 4 10 79,911 11 5 1902-1903.. .. 9,027 5 4 101,076 10 4 110,103 15 8 200 0 0 12,837 3 6 123,140 19 2 1903-1904.. .. 3,344 11 0 47,775 11 4 51,120 2 4 2,248 6 6 9,584 9 11 62,952 18 9 ! 1904-1905.. .. 6,215 4 8 22,109 12 2 28,324 16 10 13,547 11 7 31,862 8 3 | 73,734 16 8 1905-1906.. .. 8,576 16 7 52,385 3 7 60,962 0 2 23,956 9 10 19,965 16 2 ;104,884 6 2 | 1906-1907.. .. 4,989 9 1 28,559 6 2 33,548 15 3 12,867 10 8 55,556 14 10 1101,973 0 9 1907-1908.. .. 4,133 3 3 37,713 8 11 41,846 12 2 429 9 0 80,170 3 3 :122,446 4 5 1908-1909.. .. 14,127 8 1 50,890 5 1 65,017 13 2 15,257 11 1 16,641 15 7 ! 96,916 19 10 1909-1910.. .. 15,324 5 7 23,100 14 0 38,424 19 7 3,500 7 0 11,638 18 8 53,564 5 3 1910-1911.. .. 10,427 9 4 27,200 14 6 37,628 3 10 1,009 9 7 12,833 7 5 151,471 0 10 1911-1912.. .. 20,332 3 1 62,950 14 7 83,282 17 8 860 5 4 4,982 8 7 ; 89,125 11 7 I 1912-1913.. .. 2,506 15 0 115,428 2 5 117,934 17 5 63 15 0 73,404 8 3 191,403 0 8 1913-1914.. .. 4,730 15 8 80,228 10 11 84,959 6 7 137 5 8 16,671 3 3 101,767 15 6 1914-1915.. .. 109,512 12 4 68,004 2 1 177,516 14 5 853 3 5 8,189 3 10 186,559 1 8 11915-1916.. .. 30,865 10 2 47,222 13 9 78,088 3 11 14,742 5 9 2,363 3 9 95,193 13 5 11916-1917.. .. 41,600 17 4 106,454 9 0 148,055 6 4 34,852 5 5 6,636 4 1 189,543 15 10 1917-1918.. .. 17,909 4 7 48,886 8 7 66,795 13 2 26,010 17 11 7,693 0 5 100,499 11 6 1918-1919.. .. 13,519 17 3 66,70119 8 80,22116 11 .. .. 80,22116 11 1919-1920.. .. 77,149 13 2 362,295 0 5 439,444 13 7 1,239 5 4 11,072 14 6 451,756 13 5 1920-1921.. .. 108,498 19 2 392,596 5 9 501,095 4 11 1,750 12 6 168,745 11 6 671,591 8 11 | 1921-1922.. .. 2,455 13 7 105,962 14 10 108,418 8 5 2,982 1 6 292,233 1 4 403,633 11 3 1922-1923.. .. 65,687 7 9 76,710 6 9 142,397 14 6 754 10 10 41 4 2 143,193 9 6 1923-1924.. .. 189,384 15 11 1,983 3 1 191,367 19 0 33,123 3 1 41,944 10 2 266,435 12 3 1924-1925.. .. 22,526 15 9 63,690 15 3 86,217 11 0 27,390 19 0 101,970 16 2 215,579 6 2 1925-1926.. .. 30,263 7 9 26,257 3 7 56,522 11 4 30,81119 2 23,665 13 8 111,000 4 2

8.—6

XX

Table No. 20. EDUCATION EXPENDITURE. Total Expenditure on Education out of Public Funds, including University, Primary, Secondary, and Higher Education, Technical and Special Schools, 1913-14 to 1925-26.

In addition, secondary schools and University colleges derive direct income (amounting for 1925-26 to £80,600) from reserves vested in them. The following amounts were also paid out of the Government Fire Insurance Fund for rebuilding school buildings destroyed by fire : — £ 1916-17 .. .. .. .. ..2,127 1917-18 .. .. .. .. ..2,658 1919-20 .. .. .. .. ..15,682 1920-21 .. .. .. .. ..16,162 1921-22 .. .. .. .. .. 27,103 1922-23 .. .. .. .. .. 8,542 1923-24 .. .. .. .. .. 12,490 1924-25 .. . .. .. .. 32,829 1925-26 .. .. .. .. ..4,938

Loan-money : Erection Consolidated Fund. of School Buildings and Residences. Per Head of Year. ! Administra- Subsidies Total. Mean National tion: Eevenue to PubUo Education T'opulaSpecial Endow- Vote, , f Teachers Works turn. Acts. ment Education Keservea . Super- |i;und Aocount Revenue. Salaries and annuatjon other Charges.; Fund. - - £ £ £ £ £ £ £ ££s. d. 1913-14 .. 27,742 50,681 1,131,756 71,808 17,000 121,954 .. 1,420,941 1 5 3 1914-15 .. 26,128 55,139 1,207,983 70,802 17,000 122,940 .. 1,499,992 1 6 2 1915-16 .. 46,874 64,858 1,329,166 84,390 17,000 97,972 .. 1,640,260 1 8 6 1916-17 .. 58,408 60,180 1,406,264 90,535 17,000 70,367 .. 1,702,754 I 9 8 1917-18 .. 59,362 70.345 1,511,256 90,518 17,000 63,082 .. 1,811,563 1 11 5 1918-19 .. 57,716 76,177 1,602,995 92,095 43,000 115,656 .. 1,987,639 114 1 1919-20 .. 79,747 78,988 2,031,825 99,352 43,000 195,500 .. 2,528,412 2 1 10 1920-21 .. 101,972 70,313 2,460,116 100,758 43,000 244,722 214,571 3,235,452 2 11 8 1921-22 .. 96,217 71,737 2,580,562 105,448 43,000 2,469 563,411 3,462,844 2 13 10 1922-23 .. 90,393 66,610 2,514,991 112,378* 68,000 .. 361,976 3,214.348 2 9 0 1923-24 .. 96,506 77,788 2,604,508 116,808* 68,000 .. 295,681 3,259,291 2 8 11 1924-25 .. 128,844 86,746 2,752,271f 118,973* 68,000 .. 462,212 3,617,046 2 13 2 1925-26 .. 111,389 87,512 2,854,719| 119,978* 70,952 .. 564,946 3,809,496 2 14 9 * Net revenue after deducting expenses and cost of collection. f Excluding £25,000 for teachers' superannuation, included under that heading.

B, —6,

XXI

Table No. 21. New Zealand. —Statistical Comparisons for a Decennial Period.

By Authority: W. A. G, Skinner, Government Printer, Wellington,'—l 926,

Statistics for Increase. Item. Dates or Periods. Unit. Fir Period" ° r SeC °PerSd te ° r Numerical. Percent Population (including Maoris) Census, 1910 and 1926 .. No. 1,149,225 1,407,165 257,940 22 Total trade .. .. "] f £ 56,699,148 101,723,443 45,024,295 79 Imports .. .. .. >Ye f916 e and < 1926 t Mar ° h,< £ 22,917,437 53,025,856 30,108,419 131 Exports ...... J [ £ 33,781,711 48,697,587 14,915,876 44 Exports of wool .. .. ~) f lb. 196,570,114 205,726,856 9,156,742 5 £ 10,387,875 17,739,736 7,351,861 71 Exports of frozen meat .. cwt. 3,591,260 3,414,205 —177,055* —5* £ 7,794,395 11,174,567 3,380,172 43 Exports of butter .. .. I Calendar Years 1915 and . cwt. 420,144 1,245,324 825,180 196 ' 1925 | £ 2,700,625 10,240,132 7,539,507 279 Exports of cheese .. .. cwt. 817,258 1,376,754 559,496 68 £ ! 2,730,211 5,800,808 3,070,597 112 Exports of apples .... lb. 2,411,008 8,507,043 6,096,035 253 £ 20.978 116,101 95,123 453 Cattle .. .. .. 1916 and 1925 .. .. No. 2,417,491 3,503,744 1,086,253 45 Dairy cows .. 1916 and 1925 .. .. No. 750,323 1,323,432 573,109 76 Sheep .. .. .. 1916 and 1926 .. .. No. 24,788,150 24,750,000 -38,150* Pigs .. .. .. 1916 and 1925 .. .. No. 297,501 440,115 142,614 48 Hives of bees .. .. 1911 and 1923 .. .. No. 71,605 89,600 17,995 25 Exports of honey .. .. Calendar Years 1915 and lb. 267,945 1,822,043 1,554,098 580 1925 £ 6,068 53,156 47,088 776 Factory production—- 1 f Establishments .... | No. 3,786 4,547 761 20 Employees .... No. 50,744 71,760 21,016 41 Wages paid .. .. VYears ended 31st March,£ 6,654,504 13,557,236 6,902,732 104 Value of products .. 1916 and 1925 j £ 45,454,184 84,101,313 38,647,129 85 Values of land, buildings, j £ 21,951,576 49,978,842 28,027,266 128 machinery, and plant Telegraph ami telephone lines "1 f miles 17,121 24,109 6,988 41 Telegraph and telephone wire I At 31st March, 1916<{ miles 176,577 462,224 285,647 162 Telephone subscribers .. f and 1926 I No. 44,836 102,509 57,673 1 129 State railways .... ] [ miles 2,960 3,138 178 6 Government expenditure on Years ended 31st March, £ 400,062 949,077 549,015 137 roads and bridges 1916 and 1926 Government water-races for At 31st March, 1916 and miles 98 407 309 315 irrigation purposes 1926 Area of swamp drained by At 31st March, 1916 and acres 64,659 j 195,338 130,679 202 Government 1926 I * Decrease.