8.—6
INDEX.
PAGE Annual Appropriations, 1934-35 .. .. .. .. .. 13 Banks Indemnity (Exchange) Act .. .. .. . . . . 5 Borrowing, new .. . . . . .. . . .. ~ 7 Budgetary position .. . . .. . . .. .. .. 12, 15 Business recovery .. .. .. .. .. .. ~ 15 Capital expenditure .. .. .. .. .. .. .. 7 Capital programme, summary of .. .. .. .. ~ 8 Customs .. .. .. .. .. .. ~ .. 12 Dairy industry .. .. .. .. ~ .. ~ j Debt redemption .. .. .. .. . . ~ .. g Debt services, savings .. .. .. .. .. ' 13 Debt summary .. .. .. .. .. .. .. g Defence expenditure .. .. .. .. .. .. ~ 13 Deposit rates .. .. .. .. .. .. .. 3 Domicile of Public Debt .. .. .. .. .. .. 7 Economic tendencies .. .. .. . . .. .. 1 Estimated expenditure .. .. .. .. .. . . 13 Exchange .. .. .. .. .. .. ~ 13 Expenditure, 1933-34 .. .. .. .. .. .. 4 Expenditure, 1934-35 .. .. .. .. .. .. 13 Export prices .. .. .. .. .. .. . . 1 Forecast for 1934-35,. .. .. .. .. .. .. 12 Funded debt .. .. .. .. .. .. ~ 6 Highways expenditure .. .. .. .. .. .. 8 Highways revenue .. .. .. .. .. .. .. 13 Housing schemes .. .. .. .. .. .. .. 8 Hydro-electric works .. .. .. .. .. .. 7 Interest and other receipts, 1934-35 .. .. .. .. .. 12 Interest rates .. .. .. .. .. .. .. 2 Interest-rate tendencies .. .. .. .. .. .. 3 Land development .. .. .. .. .. .. .. 9 Liquidation of reserves .. .. .. .. .. .. 5, 12 Loan conversion, Public Debt .. .. .. .. .. 7 Loan programme . . .. .. .. .. .. .. 7 Local-body schemes, unemployment .. . . .. .. . . 10 London loan conversion .. .. .. .. .. .. 7 Main highways .. .. . . .. .. .. ~ 8, 13 Miscellaneous works . . .. .. .. . . .. .. 8 Mortgage investments . . .. . . .. .. ~ 2 i—B. 6.
8.—6.
PAGE National Mortgage Corporation . . .. . . . . . . 2 Native-land development . . .. . . . . . . .. 10 New works .. . . .. . . .. .. .. .. 8 Old-age pensions, increase .. .. .. . . .. . . 14 Outlook abroad .. .. .. . . . . .. . , 1 Primary production . . . . .. . . . . .. . . 1 Progress, Small Farms Scheme . . .. .. . . . . 9 Public Accounts, 1933-34 .. .. . . .. .. . . 4 Publiq buildings .. .. .. .. .. .. ... 8 Public Debt .. ~ .. .. .. . . .. g Public Works .. .. . . .. .. .. .. 7 Railway construction, &c. .. .. .. .. .. . . 7 Reproductive works, unemployment . . .. .. .. .. 10 Reserve Bank .. .. . . , . .. ~ . 3 Reserves, liquidation of .. .. .. .. .. ~ 5, 12 Restoration of cuts in salaries and wages, partial .. . . .. 14 Revenue, 1933-34 .. .. .. .. .. .. . 4 Revenue, 1934-35 .. .. .. .. .. ~ .. 12, 15 Revenue, unemployment, 1934-35 .. .. .. .. .. 11 Salaries and wages, partial restoration of cuts .. .. .. .. 14 Sales tax .. .. .. .. .. .. .. . Savings, debt services .. .. .. .. .. . 13 Silver coinage .. .. .. .. .. .. 3 Small Farm Scheme .. .. .. .. . . . 9 Sterling, disposal of . . .. .. .. .. . 5 Summary of Budgetary position . . . . . . .. .. 15 Summary of year's operations .. .. . . . . .. 4 Superannuation funds .. .. . . .. Surplus .. . . .. .. .. | - Taxation .. .. .. .. . 412 Taxation, unemployment, special exemptions and reductions . . .. 11 Treasury bills .. .. .. .. .. 5 Unemployment .. .. .. ~ .. jq Unemployment, local-body schemes . . .. . . .. . 10 Unemployment, reproductive works .. .. . . . . 10 Unemployment revenue, 1934-35 .. .. .. U Unemployment, taxation reductions .. .. .. .. U Unemployment, taxation, special exemptions . . .. .. H
II
8.—6.
1934. NEW ZEALAND.
FINANCIAL STATEMENT. (In Committee of Supply, 23rd August, 1934.) BY THE RIGHT HON, J. G. COATES, MINISTER OF FINANCE.
Mr. Chairman, — Viewing world conditions generally, there can be no doubt that the past year witnessed substantial progress towards economic recovery. The movement is more marked in some countries than in others, with the United Kingdom well in the lead. On grounds both of sentiment and of self-interest this is gratifying to New Zealand, in that the United Kingdom still remains the principal market for our large export trade, which, of course, is a major factor in our economic recovery. The progress already made overseas is reflected in the increase in our export prices. The recovery in wool prices was spectacular, amounting to a substantial increase over the previous year. This not only eased the difficulties of woolgrowers, but put fresh heart into the whole community. At more recent sales prices have receded a little from the peak level. Prices of meat also rose considerably during last year, conditions in the United Kingdom meat-market showing a gratifying improvement following the Ottawa Conference in 1932. The index number of our export prices has increased by 40 per cent. At the present time His Majesty's Government in New Zealand, in close association with the New Zealand Meat Producers' Board, are discussing with His Majesty's Government in the United Kingdom the future of our meat-marketing. The prices of dairy-produce have, unfortunately, remained at a disastrously low level. At the same time, the dairy-produce marketing situation in the United Kingdom has been under anxious scrutiny by His Majesty's Government in the United Kingdom, and steps have been taken there to render assistance to milkproducers. Having regard to the urgency and the complexity of the problem, and to the need in the national interest for laying solid foundations for our future in this industry, the New Zealand Government set up a Royal Commission, the report and recommendations of which will shortly be available. Meat and dairy-produce together account for not less than 65 per cent, of New Zealand's total export-values. For this reason we are vitally concerned in the steps that are being taken in the United Kingdom in the direction of assisting and planning her agriculture. It is a development that goes to the heart of our own economic life. The present tendency in the United Kingdom, as elsewhere, is to seek a greater degree of self-sufficiency in food-supplies. Production of meat and dairying are types of farming that have long existed and can be extended in the United Kingdom, and it so happens that these are the particular products in which New Zealand has specialized. The farming industry generally has experienced a favourable season, resulting in a substantial increase in butterfat production and a record lambing in sheepfarming. The yield per acre in grain-growing was appreciably above the average, while there has been considerable increase in pig-keeping. The Dominion's frozenpork exports for the past three calendar years were : 1931, 117,078 cwt. ; 1932, 143,640 cwt. ; 1933, 321,338 cwt.
Outlook abroad.
Export prices.
Dairy industry.
Economic tendencies.
Primary production.
I—B. 6.
8.—6.
In the general interests of the country the assistance given to farmers in the form of subsidies on the carriage of lime and fertilizers, and also on the manufacture of fertilizers, has been continued. I may add that, after careful investigation of the position of the fertilizer companies, the Government found it necessary to take a firm stand in regard to the selling-price of fertilizers. Where necessary, reduced railage freights on farm-produce have also been continued. The benefits received from the increase in the prices of a substantial proportion of our exports, combined with the raising of the exchange-rate, have substantially bridged the serious gap between costs and market prices for a great many of our farmers. Since 1932 the export-price indices show an average rise of 20 per cent. On the other hand, prices internally have remained remarkably stable, the index for wholesale prices showing an increase of 3 per cent, and retail prices a decrease of 3 per cent. In fact, since the raising of the London - New Zealand exchangerate retail prices have been stabilized, not increased. This is borne out by the tables issued by the Government Statistician showing that, in January and February, 1933 the New Zealand retail price-index stood at 26 per cent, and 27 per cent, above July, 1914. Despite the imposition of the sales-tax, and the increased exchange-rate, this increase above the July, 1914, level remained at 26 per cent, and 27 per cent, throughout the year 1933. The success of the Government's policy of bringing about lower interest-rates is another powerful factor in aiding economic recovery. Following the conversion of the public debt and the substantial progress already made in the conversion of the debts of local bodies, the cheaper credit has now permeated through all avenues of investment. As a result, money is being freely offered now for investment in mortgages at 4| per cent, and even lower. These rates are lower than the minimum of 5 per cent, fixed for the statutory reductions under the National Expenditure Adjustment Act, and a marked contrast to the rates of 6| per cent, and 7 per cent, ruling prior thereto. The mortgage situation generally is complicated and an obstacle to economic recovery. The statutory reductions under the National Expenditure Adjustment Act and the operation of the Mortgagors' Relief legislation from the nature of things cannot be anything more than a temporary expedient, and what is wanted now is a sound method of liquidating the position that will tend to strengthen confidence in mortgage investments. Having succeeded in obtaining lower market rates of interest, the problem resolves itself into finding more adequate means of taking full advantage of those lower interest-rates. As there is no such thing as uniformity of conditions in mortgage investments, aiiy further general reductions by legislation would be inequitable and would tend to shatter confidence and thereby keep capital away from mortgages, which would harden interest-rates and be a retrograde step. It is accordingly considered that the solution does not lie in further legislation bearing directly on interest-rates, but in facilitating the refinancing of existing debts at lower interest-rates. For this purpose, and to organize mortgage finance on a comprehensive basis, it is proposed next session to bring down legislation for the incorporation by statute of a National Mortgage Corporation upon a basis somewhat similar to that of the Reserve Bank. To bridge the gap between the stock exchanges and mortgages, and thereby obtain finance at the lowest possible rates of interest, this corporation will be empowered to raise capital by the sale of mortgage bonds similar to the Rural Advances bonds which have been issued against the assets of that branch of the State Advances Office. Huge sums have been raised by the sale of such bonds on the Stock Exchanges of Europe and America. The underlying idea of these bonds is to spread risks by making the bonds a charge over all mortgages held and to turn mortgages into readily saleable stock exchange securities representing small amounts. It is considered that the proposed corporation, if properly established under the control of a Board that would command confidence, would be able to sell bonds at 4 per cent, or lower and generally be able to lend for repayment of existing mortgages at | per cent, above its borrowing-rate. A great many mortgages are at present running on overdue, and in these cases refinancing could proceed without delay. Other flat mortgages are falling due from day to day, and the opportunity to refinance the bulk of them will occur within a few years.
Interest-rates.
Mortgage investments.
National Mortgage Corporation.
2
8.—6.
Present long-term mortgages bearing high rates of interest without a condition allowing repayment in a lump sum will present a difficulty that may have to be specially provided for. As it is clear that mortgages can be satisfactorily dealt with only individually on their merits, an essential requirement is an efficient field force to inspect and report upon properties and afterwards keep in touch with mortgagors. Operating on a large scale, it will be practicable for the corporation to maintain such a force and keep it fully employed. To save a costly duplication of machinery in this respect for reviewing the position of present State mortgages, and to obviate duplication and overlapping in other directions, the new organization, under suitable financial arrangements with the Government, will take over the present investments of the State Advances Office, the Lands Department, and the Rural Intermediate Credit Board. The whole proposal is too big to be dealt with this session, as a considerable amount of preliminary work will be necessary in elaborating it in detail before legislation can be drafted. I may add that it is not intended that the corporation should take over all mortgages, but its operations will be large enough to influence the market, and other mortgagees will doubtless follow its lead in the matter of rates of interest. It is realized that rearranging and stabilizing mortgage finances generally is a task of national importance, but until it is done the financial rehabilitation of this Dominion cannot be considered complete. With this corporation established to do the work, however, farmers and other mortgagors can rely upon expert assistance free from any suspicion of undue profit-taking. Innumerable arrangements with second and subsequent mortgagees will be involved in the effort to rearrange finances within the limit of the productive capacity of the farm, but if cheaper rates are obtained for a first mortgage as large as a present-day productive value warrants, second mortgagees stand to gain from the arrangement, and, generally, should be willing to meet the corporation in a reasonable spirit. On the Ist August the Reserve Bank commenced operations and assumed control of our banking structure and of the exchanges. Apart from the changeover in the note-issue, the public will notice little or no alteration in their banking and exchange transactions, but actually some fundamental and far-reaching changes have been effected by the establishment of the Reserve Bank. We now have a co-ordinated banking system and deliberate and disinterested control of the credit structure. The general benefits that will accrue to the community in the long-run cannot fail to be substantial. In the immediate future the Bank will undoubtedly prove a powerful factor in furthering the Government's policy of aiding economic recovery by stabilizing interest-rates at a lower level. Although the two things are not directly connected, I may mention here that, concurrently with the setting-up of a national control of our credit structure, we are engaged in a change-over to our own silver coinage, a further indication of our monetary independence. The general movement in interest-rates is still downward, and this movement, by progressively lightening the burden of debt, is a powerful incentive to recovery. As honourable members are aware, the trading banks made a further reduction in their deposit rates, ranging from \ to \ per cent., operative from sth July, while the maximum rates of interest that could be paid for deposits by building and investment societies and trading companies were lowered proportionately as from the Ist August. From the same date the interest-rate on Post Office Savings-bank deposits above £500 was reduced to 2| per cent. The Government's efforts in bringing about these reductions in deposit rates are, of course, intended to facilitate a further reduction in lending rates, and particularly overdraft rates. The immediate position is governed by the rates payable on existing deposit contracts. However, the Government expects a further substantial reduction in the bank overdraft rate for best accounts in November next. I may add that the Rural Intermediate Credit Board and also the Lands Department, in so far as current accounts advances are concerned, have recently announced a reduction in interest-rates to 5 per cent.
Reserve Bank.
Silver coinage.
Interest-rate tendencies.
3
8.—6.
PUBLIC ACCOUNTS. The improvement in economic conditions during last year was to some extent reflected in the public revenues, and this fact, combined with a saving of £250,000 in expenditure, enabled the deficit to be reduced from the Budget forecast of £2,094,000 to £709,000. All things considered, it will, I think, be generally agreed that this was a satisfactory outcome to a very difficult year. The accounts for the year have already been published, and are summarized in comparative form in the tables attached to this statement. The total revenue received during the year amounted to £23,492,749, comprising taxation receipts, £17,059,830 ; interest, £2,863,856 ; other departmental receipts, £1,569,063 ; in addition to which £2,000,000 was obtained by liquidating reserves invested in discharged - soldiers - settlement mortgages, advances being obtained from the Bank of New Zealand against the hypothecation of the securities. From the comparative tables attached to this statement it will be seen that the total receipts from taxation exceeded the Budget estimate by £845,830, the principal items in excess being Customs duties, £285,000; income-tax, £261,000; stamp and death duties, £113,000 ; and sales tax, £97,000. Practically all the items of taxation produced more than the estimate, and the total amount received from this source was £1,455,000 more than in the previous year. The only important feature of the interest receipts was the fact that interest on railway capital liability showed an increase of £294,000 over the estimate, and was £234,000 greater than the amount received in the previous year. This is a further indication of an improvement in the economic position of the Dominion. Little comment is called for regarding the receipts from other departmental activities, which, in total, were £28,000 greater than estimated. The improved position of the farming community is reflected in the increased returns from territorial revenue (£65,000) and national-endowment revenue (£19,000). The net expenditure for the year amounted to £24,202,027, against an estimate of £24,456,846, a net saving of £254,819. The bulk of this saving was made under the annual appropriations, and, as the various votes had received careful consideration, this result can be regarded as eminently satisfactory, and is a clear indication of the continued efforts of all Departments to maintain efficiency at the lowest possible cost. As will be seen from the comparative tables, almost all Departments contributed their share to the saving. SUMMARY OF YEAR'S OPERATIONS. The operations for the year may be summarized as follows : — Expenditure. Permanent appropriations— £ £ Debt services .. .. .. .. 10,397,332 Exchange .. .. .. .. 1,797,188 Highways . . . . . . . . 1,201, 837 Other services .. .. .. .. 353,797 Annual appropriations — Social services .. .. .. .. 6,841,819 Other services .. .. .. .. 3,610,054 24,202,027 Revenue. Taxation .. .. .. .. .. 17,059,830 Interest .. .. .. .. 2,863,856 Other receipts. . .. .. .. .. 1,569,063 From reserves. . .. .. .. .. 2,000,000 23,492,749 Deficit .. .. .. .. .. £709,278
Public Accounts.
Revenue.
Taxation.
Interest reeeipts.
Other reeeipts.
Expenditure.
4
B. —6.
Extensive operations also took place during the year under the Banks Indemnity (Exchange) Act, the amount of sterling purchased from the banks being £26.684.000. Of this sum, however, £8,500,000 was utilized by the Government for its own requirements, so the net surplus sterling taken over for the year was £18,184,000. As the Act has now been repealed, I may mention for the information of honourable members, that, during its currency, covering the period from the 20th January, 1933, to the 31st July, 1934, the total amount of sterling purchased under its provisions amounted to £36,208,000, of which £13,198,692 was utilized by the Government for its own requirements. The net amount of surplus sterling taken over was thus £23,009,308. The greater part of the surplus sterling has already been sold to the Reserve Bank at its public buying rate of £124 New Zealand for £100 sterling, and the balance will similarly be disposed of before the end of September, the whole operations being governed by the maturity dates of investments in London and of liabilities in New Zealand. The proceeds in New Zealand will be sufficient to pay off the Treasury bills and to extinguish the suspense item, and are being applied to these purposes. TREASURY BILLS. Apart from renewals and conversions, the Treasury bills issued under the Banks Indemnity (Exchange) Act during the year amounted to £29,384,732, of which £12,360,197 had been repaid by the 31st March. Thus the net increase for the year was £17,024,535, and this, added to £2,380,337 of bills carried forward from the previous year, resulted in £19,404,872 of this class of Treasury bills, of which £16,319,672 bore interest at 5 per cent, per annum and the balance at rates varying from 2f per cent, to 4 per cent., being outstanding on 31st March, 1934. Bills to more than this amount have recently been redeemed with the proceeds from the sale to the Reserve Bank of New Zealand of surplus sterling. In so far as revenue bills are concerned the published accounts show that Treasury bills issued during the year amounted to £39,606,077, including issues in renewal. The total accommodation received, however, was £11,346,000, of which £6,977,000 was obtained from the banks and £4,369,000 from Government accounts and the public. The balance consisted of issues in renewal of these bills and also of the £1,585,000 of bills outstanding on the 31st March, 1933. The bills issued had a currency not exceeding six months, and were discounted at rates ranging from 2f per cent, to 3 per cent, in the case of bills taken up by Government accounts and the public, and 5 per cent, per annum in the case of bills issued to the banks. In the aggregate £37,738,968 of revenue bills was paid off, the amount being £1,867,109 less than the issues during the year. The result was that by the 31st March last revenue bills outstanding had been increased to £3,452,109. As a result of all these operations, the floating debt as at 31st March last amounted to £22,856,981, as compared with £3,965,337 as at 31st March, 1933, an increase of £18,891,644 for the year. The greater part of the bills issued under the Banks Indemnity (Exchange) Act were redeemed on the Ist August last, and the balance of this class of bill will be repaid shortly. I may add that, although it does not form part of the public debt in the ordinary sense of the term, there is also the liability under the arrangements made for liquidation of reserves by the hypothecation of discharged-soldier-settlement securities to two of the banks. This is a self-contained arrangement whereby the liability incurred to secure immediate liquidation for the Consolidated Fund will be gradually repaid from the capital repayments received under the table mortgages in which the reserves are invested. The amount of the liability in question is now £4,050,000, representing a net increase of £1,800,000 during the last financial year.
Banks Indemnity (Exchange) Act.
Treasury bills.
Liquidation of reserves.
5
8.—6.
PUBLIC DEBT. Apart from the operations affecting the floating debt which I have just explained, there was a net increase in the amount of the public debt during the year of £1,277,394, £491,254 being due to premiums arising under the conversion operations and £786,140 to operations during the year. The successful conversion of £5,000,000 5-per-cent. debt into 3|-per-cent. securities at 97 in October last, referred to in last year's Budget, was the only debt operation undertaken in London during the financial year. In the Dominion additional long-term debt to the amount of £4,522,765 was raised for the following purposes: — Capital expenditure — £ £ Public works (including hydro-electric supply) .. 1,662,690 Land for settlements . . .. •• 198,000 Main highways . . . . • • • • 203,000 State Forests .. .. .. 75,000 2,138,690 Redemptions of debt . . • • • • • • • 2,384,075 £4,522,765 Of this £4,522,765 raised in New Zealand, £1,906,090 was obtained from the public at 3f per cent., while the balance of £2,616,675 was derived from departmental investments. Redemptions of long-term debt during the financial year amounted to £3,736,625, the funds for the purpose being derived from the following sources : — For debt repayment — £ £ Repayment of Public Debt Act, 1925 . . . . 596,270 Reparations and war credits . . . . ■ • 650 Separate accounts . . . . • • ■ • 754,040 1,350,960 From issues in redemption . . . . . • • • 2,385,665 £3,736,625 Thus the additional debt incurred exceeded repayments by £786,140. Of the redemptions effected, £104,560 was held in Australia and the balance in New Zealand. Thanks to the generosity of Great Britain in extending the moratorium on our funded war debt and certain other debts due to the British Government, no payments were made in respect of this portion of the debt during last financial year. The debt operations for last financial year may be summarized as follows: — £ Debt as at 31st March, 1933 .. .. •• 282,622,958 Plus net increase in floating debt (mostly temporary) as previously mentioned .. .. .. 18,891,644 301,514,602 Plus net increase in long-term debt— £ (a) Due to loan conversion .. 491,254 (b) Due to operations during year .. 786,140 1,277,394 Public debt as at 31st March, 1934 .. £302,791,996 Following the simplification of the internal debt as a result of the conversion operations, the opportunity has been taken to alter the form of the debt table (8.-l [Part III]), which honourable members will find now contains a concise
Public Debt.
Debt redemption.
Debt summary.
6
8.—6.
statement showing the amount, interest-rate, maturity date, and domicile of the debt, together with a subsidiary statement showing the purposes for which it was raised. The domicile of the debt as a whole on the 31st March, 1934, was as follows:—- £ London .. .. .. .. .. 160,908,105 Australia .. . . . . . . . . 2,908,150 New Zealand .. .. .. 138,975,741 £302,791,996 Mention was also made in last year's Financial Statement of the only other loan over which the Dominion had the immediate right to exercise an option of repayment, and honourable members will be pleased to learn that this loan has now been dealt with on very satisfactory terms. The loan carried interest at 4 per cent, and of the original £4,000,000 the amount of £3,989,100, being the balance of the loan held in London, was recently offered for conversion into 3j-per-cent. stock at par maturing 1955-60. Cash subscriptions were invited from the public to meet redemptions of any unconverted holdings, and advices to hand indicate that the new issue was favourably received. Holders of the loan were given the right to convert into the new issue, and applications to the extent of £2,501,265 were received under this category. Cash applications, from the proceeds of which the unconverted balance will be paid off, amounted to £1,522,000, the net result showing an oversubscription of £34,165. The comment of London financial authorities is to the effect that the transaction from the Dominion's viewpoint is very satisfactory, this being evident from the favourable terms on which the new issue has been placed. The result also indicates the proximity to current market values of the price of issue emphasizing the successful gauging of the London market conditions. CAPITAL EXPENDITURE. The new loan-moneys raised last financial year, augmented from balances in hand, were used in carrying out the programme of capital works outlined in last year's Budget, although, as will be seen from the details included in the publicworks estimates to be tabled to-night, the expenditure in respect of some of the items was less than was anticipated. For the current financial year it is again intended to proceed with a moderate programme of capital expenditure amounting in the aggregate to £3,560,000. It is anticipated that funds already in hand, together with departmental investments, will be sufficient to finance this expenditure. Accordingly, it will not be necessary to issue any special loan or make any further offer of Government securities to the public this financial year. The proposals are embodied in detail in the estimates, but it will perhaps assist honourable members if I briefly outline the principal items concerned. With the completion of the main line between Taranaki and the North Island Main Trunk, to be handed over to the Railways Department on the Ist September, railway construction will cease. There is in hand, however, an improvement work of considerable magnitude in the Wellington terminal facilities including the Tawa Flat deviation and the electrification of the line to Paekakariki. It is estimated that a net amount of £227,000 will be required for these purposes during the current financial year, but nearly £1,000,000 will be required to complete the whole undertaking. The only other large single undertaking at present in hand is Waitaki River Electric-power Scheme, which, it is anticipated, will come into operation towards the end of this year after further expenditure amounting to £306,000. In addition, some substantial amounts shown in the estimates will be required for various extensions to the other large schemes. The net estimate of the total capital expenditure for the year on hydro-electric works is £550,000. I may add that
Debt domicile.
Loan conversion.
Public Works.
Loan programme.
Railway construction, &c.
Hydro-electric works.
7
8.—6.
these hydro-electric schemes continue to be a financial success. The net surplus for last financial year, after providing for working-expenses, depreciation, and interest, was £117,000, which is to be applied towards sinking fund and reduction of past losses. Another major item in this year's capital programme is public buildings, including schools, for which a net vote of £435,000 is proposed. The largest single work in hand is the Dunedin Post-office, for which it is estimated £120,000 will be required this year. In addition, £150,000 is to be provided for school buildings, primary and secondary, and £90,000 for mental hospitals, where additional accommodation is urgently needed. An instalment of £30,000, being portion of the subsidy of up to £100,000 promised for the National Art Gallery and Dominion Museum, is also provided on the estimates. Finally, I may mention, now that financial commitments on major works generally are becoming lighter, it is proposed to commence the erection of new administrative blocks of buildings to house Government Departments in Wellington and Auckland. The present Government buildings are old and the accommodation is quite inadequate. In fact, the amount now being paid by way of rent for additional accommodation would probably be sufficient to pay interest and sinking fund on the capital cost of new buildings to house all Departments. The gain in convenience to the public and administrative efficiency would be considerable. In addition to proceeding with these works, the carrying-out now of other necessary building-works is considered by the Government as economically sound quite apart from the associated immediate benefits that will accrue in acceleration of employment in the various trades concerned. At the same time the proposals have a close bearing on the problem of finding further useful employment, and from this aspect are to be considered in conjunction with other measures to which I will refer presently. As it will be some time before construction work can be started,. very little expenditure on these projects will be involved this financial year. Before departing from the subject of building operations, I may say that some local bodies are giving consideration to the problem of improved housing conditions in what may be termed slum areas. In England it is noted that considerable activity by local bodies in this matter exists, and here I may say this Government is willing to co-operate as far as possible with local bodies in New Zealand in any projects of this nature. Provision to the extent of £1,910,000 is being made for expenditure on highways and roads apart from cost of administration. Of this amount £900,000, representing an increase of £255,000 over last year's expenditure, is being provided out of the Main Highways Revenue Fund for maintenance expenditure. On the highwaysconstruction work it is proposed to spend £510,000, about half of which is for bridges and the balance for sealing and other surface improvements. This leaves £500,000 for expenditure under the Public Works Fund vote for settlement roads in the various counties throughout the Dominion. The expenditure will be mostly for metalling roads in the more remote districts. In addition, as was the case last year, a considerable amount of road works will be carried out with assistance from unemployment funds. Other items in the programme are £260,000 for extensions of the telephone and telegraph systems, and £220,000 for irrigation, lands improvement, and swamp drainage. Continuation of the work on the Omakau Irrigation Scheme in Central Otago will absorb £64,000, while £50,000 will be spent on the Taupiri Drainage Scheme, and considerable sums in continuing the reclamation of valuable harbour flats in. North Auckland. As may be seen from the estimates, various smaller amounts have been set down for other votes. To summarize the position, I may say that the capital programme is broadly made up as follows : — £ Public works .. .. .. .. .. 2,862,000 Small Farms Scheme .. .. .. .. 375,000 Additional expenditure for land-development .. 150,000 Native-land development . . . . . . 120,000 Forestry .. ... .. .. .. 53,000 £3,560,000
Public buildings.
New major works.
Housing schemes.
Highways expenditure.
Miscellaneous works.
Summary of capital programme.
8
8.—6.
SMALL FARMS SCHEME. The Small Farms Scheme has now been under the administration of the Small Farms Board for a little over one year, and the results may be classed as satisfactory having regard to the falling prices of dairy-products and to the fact that the fall has not been reflected in the prices asked for land. The main difficulty met- with by the Board has been that of acquiring suitable land at prices in keeping with productive capacity. Dairying has been the principal basis of calculation in subdividing land for small farms, but each settler has had the option of developing such side-lines as suited the particular property and his own qualifications. Most settlers, however, have confined themselves almost entirely to dairying. In view of the state of the dairying industry, however, the Board has recently considered it desirable to give more encouragement to mixed farming or lambfattening on a small scale, under intensive farming conditions. This type of farming leaves the settler in a position to increase or reduce his activities from year to year in any particular line according to market fluctuations. It should not be inferred from this that the Small Farms Scheme has been confined solely to dairying and sheep-farming in relatively large holdings. A number of 5-acre lots has been provided in localities deemed suitable—the settlers to grow fruit, to go in for market-gardening and poultry, and to keep one or two cows for household purposes, and perhaps a few pigs. As examples, the Richmond Block, near Napier (thirty-eight settlers) and the Karamu Block, near Hastings (nineteen settlers) may be quoted. Others have been established in localities where seasonal work is obtainable. At the beginning of last financial year the number of men settled under the original Small Farms Scheme was 753, of which 265 were " share milkers," and 488 were settled on individual holdings of the type popularly known as " 10-acre farms." During the year it was found necessary for" various reasons to close twenty-five of these small holdings and, in addition, four were removed from the " share milking " list. The progress made under the administration of the Board is illustrated by the following figures of the position as at the end of May, 1934 : — Number of Total Area. Holdings. §'Acres. (1) Individual holdings settled up to 31st May, 1934 . . . . . . 321 20,495 (2) Blocks in course of development or the development of which has been approved (including Ahuriri Lagoon) 554 35,850 (3) Number of share milkers approved .. 59 In addition to the above, the Board has now under negotiation the acquisition of approximately 24,981 acres, estimated to provide 269 holdings. One of the subsidiary objects of the Small Farms Scheme has been to provide work immediately for unemployed men, apart from those settled on individual properties, and approximately seven hundred men are at present engaged on landimprovement and development work. LAND DEVELOPMENT. Satisfactory progress has been made with the development of various blocks under the supervision of the Lands Development Board. As a result of the activities in this connection, an area of approximately 21,600 acres of previously unproductive land has now been laid down in grass, and, upon completion of the development work which has been authorized, some three hundred new holdings will have been created. The total expenditure to the 31st March last on development purposes was £305,000, which amount included the cost of the surface development of twelve blocks and the survey and reading of thirty-four blocks, containing 292 sections where the settlers themselves have attended to the development with assistance from the Board by way of loans. 2—B. 6.
Small Farm Scheme.
Progress recorded.
Land development,
9
8.—6.
11l connection with the Lands Development Board's activities in the matter of granting loans to Crown tenants on undeveloped areas for improvements and livestock, the number assisted as at the 31st March last was 455, and the loans involved totalled £188,000. Much interest has been aroused in the Lands Development Board's operations in connection with the preparation of the Galatea Settlement for occupation. It had been intended to offer for selection during this year some twenty sections ; but the uncertain situation in regard to the dairying industry has caused the offering of these sections to be postponed. In the meantime, arrangements have been made to utilize ten available sections for dairying on a share-milking basis. This action will defer the permanent settlement of the land pending more stable economic conditions, and enable the Board to exercise control over the management of the new pasture. The remainder of the settlement is being run as a sheep and cattle station. After meeting interest on the total capital invested in. the block and in the live-stock thereon, a substantial profit resulted from the working of the station last year. During the year good progress was also made in the development of Native lands for subdivision and settlement by members of the Native race. In addition, where Native lands are scattered in small areas, the work of development has been continued successfully under the system of supervision and assistance to units or family groups. Up to the 31st March last the total amount expended on schemes and unit farms was approximately £715,000, but as receipts amounted to £136,000 and subsidies from the Unemployment Board to £73,000, the net expenditure was £506,000. The number of adult Maoris living permanently on the lands developed or improved is 3,609, and the children dependent upon them 4,748. UNEMPLOYMENT FUND. Despite the very heavy demands that have been made on the Unemployment Fund during the past year, it is gratifying to report that at the end of the year the unemployment finances are in a sound position. During the last year the number assisted from the fund reached the record figure of 75,000 men, and without the introduction of the Building Subsidy Scheme and other measures adopted by the Unemployment Board to stimulate employment in ordinary industry this figure would have been greatly exceeded. Generally, the unemployment position is considerably better than it was at this time last year. The latest figures of those workers who, in one way or another, are a charge on the Unemployment Fund are 60,000, which represents a decrease of 9,000 over the figures at the corresponding date last year. In previous years the number of unemployed commenced to rise in March with the cessation of seasonal employment. No such movement has taken place this year, and, as a matter of fact, the total figures are now lower than at any period since the end of March, 1932. This is satisfactory, and indicates a general improvement in industrial and economic conditions. The commencement of seasonal occupations in the summer should reflect a further reduction in the figures. A satisfactory feature of the Board's work for the year was the progress made in finding useful and productive full-time employment for those in need of relief. As a result of the introduction of the gold-prospecting and building schemes, the placement of workers in camps with the Public Works and Forestry Departments, and various other measures adopted by the Board, the number employed on part-time work has been considerably reduced. Three years ago over 90 per cent, of the unemployed were in receipt of part-time relief under Scheme 5, whereas to-day under 60 per cent, are so employed, and every effort is being made to reduce the number still further. Numbers of local employing authorities are now making special efforts to put in hand new works, such as street-improvement, drainage, water-supply, &c., under normal working-conditions. Where local bodies are unable to finance the whole of the cost themselves the Unemployment Board, to enable the work to proceed, has come to their assistance by subsidizing the wages of relief workers on the understanding that they are employed for a full week at standard rates of pay.
Native-land development.
Unemployment.
Reproductive works.
Local-body schemes.
10
8.—6.
ploymenW,XT3d Lum l/Z thatM ™» e t*°m ™mof which £428,500 wasdentTfrom SflLl£ sllZoZT^r and wages, and £1 106,500 from the special charge 'on other incomt °" * he lecerpts from the tax on salaries and wages represent a rise of f49l nnn over the previous vear's revenue from this son™ iw r 60t i 421 > 000 tfthe 0 ta 0 I t r PayerS "t? WOTe t iling t0 meet tileir obligations cent A h, tmpVitf 2h recite • *??? * b °" t 10 " tsx ZZtP» — £S and w^ L^rfiTS e n 1 nn B r rd C + ommenced the year with a balance of £424 500 necessities for distribution to relief worked S 500 i smt°e H" ■s sSF r~3 as ssrir r ¥ r:f to^^red^Ti^lie^fun^"^^ considerable commitments. ' a^ai c °urse, there were of th?«SrbufCof oveZk fte P fcftha r t tIM T* Tatettrn It KC employment in trade and industry. It should be borne k S'ttTZdCdd *! forward on Ist .4nril Inqf +T,o J '~ ; ' Wl ™ the balance carnec i n P last, the total amount available would bp 'ion onn i. ji ■ is about £1,000,000 more than the expenditure for u1 ft £t th * -P9H d,-, p K ft j it wum ™ m respect ot other income is to be raised fmn tlthlioLrn„fe±d P bT £2 a,ld aL T f~ th «<* ™^SLfi£ Is. to M.She poun7a7tom "V ton will reduce the revenue bv f snn on f S i conceSBlon s and reduction; year. ZTtlnlif this year and by £1,000,000 in a ful mĒÊmÊÊmm.
Finances.
Revenue.
Expenditure.
Special exemptions.
Taxation reductions.
11
8.—6.
BUDGETARY POSITION FOE 1934-35. Turning now to the position of the main Budget for the current financial year, I find my present task much more congenial than was the case last year. The public revenues are no longer going down, but are moving steadily upward, a definite indication that economic conditions are on the mend. Accordingly, it is not necessary to bring down any proposals for increasing taxation. The situation, however, does not yet warrant making any further reductions. Customs revenue during the closing months of last financial year and the first four months of this year has been more buoyant, and I am satisfied that we can rely upon a comparative increase of approximately £1,115,000 for the year. The returns from the sales tax are also satisfactory, and I have allowed for an increase of £300,000 under this heading. Income-tax last year exceeded expectations, and, as last year was certainly a better trading year than the previous one, it is reasonable to allow for a further substantial increase in tax for this year. In the unsettled conditions that have prevailed it is difficult to assess the amount of increase to be expected, but, after careful consideration, it has been set down at approximately £690,000. Land-tax, on the other hand, is affected by decreases in valuations, so for this item I have allowed for a fall of £20,000 in the yield. For all other items of taxation excepting beer duty I expect increases over last year's receipts as follows: — £ Highways revenue .. .. .. .. 156,000 Stamp and death duties .. .. .. .. 17,000 Film-hire tax .. .. .. .. 12,000 Gold-export duty .. .. .. .. 3,000 In so far as beer duty is concerned the reduction in import and excise duties already announced will more than absorb the increase that otherwise would have occurred. The aggregate net increase for all items of taxation is estimated at £2,245,000. In regard to interest receipts and " other receipts " apart from reserves, it is anticipated the aggregate amount to come in will be £214,000 in excess of last year's receipts. Profits from the change-over to our own silver coinage account for £100,000 of this net increase. Last year the revenue was augmented by £2,000,000 drawn from reserves liquidated by hypothecating discharged-soldiers-settlement mortgages in which the amount was invested. It is not considered advisable, however, to anticipate further the repayment of these mortgages. There is, however, a balance in the general Reserve Fund that can be made available this year. Section 4of the Finance Act, 1931 (No. 4), empowered the transfer to the Consolidated Fund of any balance remaining after taking into account all commitments for the purposes of the Hawke's Bay Earthquake Act, 1931. The remaining commitments can now be definitely assessed, so it is intended to exercise the authority cited and transfer £300,000 to augment the Budget revenues for this year. The use of reserves has been criticized in some quarters, but it appears to have been overlooked that they were accumulated in more prosperous times for the express purpose of easing the strain on taxation in times of stress. In other words, the reserves were intended for use in such times as we have experienced during the last four years. The reserves have been invaluable in keeping the public finances within safe limits during a most difficult period, and, carefully husbanded, they materially assisted in seeing us over the worst of our budgetary difficulties. When circumstances permit, an effort should be made to build ixp fresh reserves against any future period of stringency that may come along. The aggregate estimated increase in the items of revenue that I have reviewed is £2,460,000. Deducting the comparative decrease of £1,700,000 in the amount of reserves to be used, there remains a net increase in the total Budget receipts of £760,000.
Forecast for 1934-35.
Customs.
Sales tax.
Other taxation.
literest and other receipts.
Reserve Funds.
Summary.
12
B. —6.
ESTIMATED EXPENDITURE. On the other side of the picture there is a saving of £620,000 in the cost of debt services, primarily due to two causes : firstly, to the fact that this year we obtain the full benefit from the public debt conversion operations ; and, secondly, to a saving in interest on Treasury bills. - As honourable members are aware, all bills issued for the purposes of the Banks Indemnity (Exchange) Act are now being paid off. The estimates of the cost of exchange on London for normal requirements show a decrease in comparison with last year's expenditure of £492,000. The amount of sterling required this year is somewhat less, but to the extent of £330,000 the saving is due to a recovery of past expenditure arising out of the sale to the Reserve Bank of the surplus sterling acquired under the Banks Indemnity (Exchange) Act. It may be explained that the exchange on £1,910,000 purchased in 1932-33 was charged to the Budget of that year, and, as a result, this balance of £330,000 remains after the suspense item has been extinguished. Against these decreases, totalling £1,112,000, have to be set off unavoidable increases in which "a few items are mainly concerned. Firstly, there is an increase of £160,000 in the payments for highways purposes, but this is the counterpart of the somewhat similar increase in the revenue item previously mentioned. Concerning this item, honourable members will recollect that last year legislative provision was made to retain up to £500,000 of these moneys for general use in the Consolidated Fund. It is considered advisable to make a similar provision in respect of the current financial year. In doing so, I am not unmindful of the necessity for maintaining the highways of the Dominion and have gone into the matter very carefully. As I have indicated earlier in this Statement, the provision being made for maintenance work this year is £255,000 greater than was expended last year, while for construction work on bridges, sealing, and surface improvements an additional £318,000 is being provided. The total increase for highways is thus £573,000, representing about 70 per cent, increase over last year's expenditure. An increase of £54,000 shown for "other special Acts" is mostly due to a larger amount of national-endowment receipts being available for the purposes of education and pensions, in consequence of which the net expenditure out of the votes is not as large as it otherwise would have been. Under the annual votes, the estimates for this year are £300,000 greater than the expenditure for last year. This increase is accounted for by an additional provision of £260.000 being made for Defence, chiefly for more up-to-date coast defences and aircraft, and £56,000 additional required for Naval defence. There is also a normal increase of £100,000 in pensions, but this, as well as various smaller increases under other votes, is offset by a reduction under Vote " Agriculture " of £195,000 due to smaller subsidies to manufacturers of fertilizers and the abolition of the special rebates on railway freights on those farm-products for which better prices are now obtained. The expenditure figures just referred to are included in the main estimates, which will shortly be in the hands of honourable members. Extended consideration has been given to the problem of the Government Superannuation Funds, which, as honourable members know, show a very substantial actuarial deficit. The Bill introduced during last session of Parliament provided for a revision of retiring-allowances and of conditions of retirement, and also for an increase in Government subsidies. The intention of these was to bring the Funds into an actuarially sound condition and thus to give an added and visible assurance of the payment in full of all benefits that may in future become payable. There has, however, been a marked reluctance on the part of contributors and annuitants to agree to the suggested changes. This reluctance the Government shares, and it is most anxious to avoid anything in the shape of interference with the superannuation rights of Government employees or retired employees. The aim is, therefore, to make some arrangement that will both preserve these rights and avoid the present difficulties in respect to the funds. There are two methods by which the payment of superannuation allowances to State employees on their retirement can be assured: either the building up of an adequate capital fund, or the acceptance by the State of responsibility for the allowances. In New Zealand the intention at the commencement of the superannuation schemes was that both methods should be used; but experience has
Debt services.
Exchange.
Highways revenue.
Annual Appropriations.
Superannuation Funds.
13
8.—6.
shown that, with the provision made, the first method was not effectively possible. In short, reliance has come to be placed on the second of the two methods, that is to say, on the State's responsibility for current requirements. It is of interest to note that only the second method is applied in Great Britain; retiring-allowances to Civil servantsj are a part of the regular expenditure provided for in the annual Budget. No fixed fund is accumulated. Is there any necessity for continuing to build up a capital fund to cover future superannuation requirements of Government employees ? This is the question to which I invite attention. British experience is certainly significant in suggesting that there may be something in the view contrary to that which we have hitherto accepted. Already we have gone far in New Zealand in applying the principle that the Government's responsibility should attach to the meeting of current requirements rather than to the amassing of funds. The Government is thus responsible for for payment of additional allowances to widows and dependent children, and for reimbursing the funds for loss of income due to statutory adjustments in interest-rates. The State's contribution to the three funds for last financial year amounted to £430,000, made up of £340,000 in fixed subsidies, £55,000 to offset the reductions in interest on investments as a result of conversions and the statutory reduction in mortgage interest, and £35,000 to cover pensions paid to widows and children of deceased contributors and annuitants and cost-of-living bonus to annuitants with small pensions. Of the aggregate cost approximately £385,000 was borne by the Consolidated Fund directly or indirectly, and the remaining £45,000 by the trading Departments. The proposition put forward, as an alternative to the revision of superannuation legislation on lines that would make the funds actuarially sound, is as follows : — (1) The Government to accept direct responsibility for payment of all retiring-allowances due: (2) The existing funds, which amount in the total to £5,166,000, to be held intact as a reserve fund, the interest thereon being applied towards meeting retiring-allowances of each class. The accumulated funds to be held in trust by the Public Trustee, but not to be further increased: (3) An absolute statutory right to retiring-allowances to be conferred on Government employees, provision being made for payment thereof without further appropriation: (4) The control and administration of the existing funds to be unified under one authority. Before legislation is introduced early next session of Parliament, every opportunity will be afforded to those affected to make representations. Meanwhile, it is proposed for this year to pay into the funds an additional subsidy of approximately £200,000 required to provide for present pensions without further diminishing the existing capital of the Funds. As honourable members will have gathered from my remarks in regard to the revenue, there are now definite indications that the position is steadily improving, although economically we have still some difficult problems to solve. In these circumstances, the Government feels justified in granting a 5-per-cent. increase in salaries and wages as from Ist April last to all public servants and others charged on the Budget who suffered both the first and second cut. This will be almost equivalent to a restoration of the second cut so far as the lower-paid officers are concerned. The net cost to the Budget will be approximately £380,000. To the extent of £175,000 this will be reflected in lower receipts, chiefly from interest on railway capital already allowed for, while the balance of £205,000 will mean additional expenditure out of the Consolidated Fund. In view of the state of the public finances at the time, with all items of revenue shrinking rapidly, the cuts were unavoidable, but all along it has been felt that as soon as the position of the finances would enable it to be done, in justice to the public servants, steps should be taken to restore some portion of the reductions. It is also proposed to grant a 5-per-cent. increase in old-age pensions, operative from Ist October next, the cost for the balance of this financial year being £34,000.
Partial restoration ol cuts in salaries and wages.
Increase in old-age pension!
14
8.—6.
The addition thus made to salaries, wages, and pensions will undoubtedly go into immediate circulation, and, in conjunction with the reductions to be made in unemployment and Customs taxation and the expansion of building operations, should give a decided fillip to business. In saying this, lam counting on not only the direct benefit, but also the psychological reactions throughout the Dominion. Given a little more confidence and the freer spending that would follow, the volume of business during the coming Christmas season would completely eclipse that for last year, and generally do much to increase employment and bring about an all-round improvement. .SUMMARY OF POSITION. To sum up the whole position the estimates of revenue are as follows:— Taxation— £ £ Customs .. .. .. 7,600,000 Beer duty .. .. .. 625,000 Sales tax .. .. .. 2,150,000 Film-hire tax .. .. .. 45 ; 000 Grold-export duty .. .. 120,000 Highways .. .. 1,860'000 Stamp and death duties . . . . 2,730,000 Land-tax .. .. .. 480'000 Income-tax .. .. .. 3,650,000 Miscellaneous .. . . .. 45 ; 000 Total taxation. . .. .. .. ..19,305,000 Interest receipts 2,885,000 Other receipts. . 1,762,000 From reserves. . .. .. .. _ 300,000 £24,252,000 The Budget estimates of expenditure may be summarized as follows : —- £ £ Debt services .. " q 777 000 Exchange " i^OOO Transfer of highways revenue . . 1,362,000 Other permanent appropriations .. 409,000 Annual votes— Social services .. .. .. 6,961,000 Other votes .. .. .. 3'791^000 Total, main estimates . . . . . . 23 605 000 Additional superannuation subsidies .. .. 200,000 Five-per-cent. increase in salaries and wages . . 205,000 Five-per-cent. increase in old-age pensions .. 34,000 Other supplementary estimates .. 200',000 £24,244,000 On this_ basis the financial year will close with a small surplus of £8,000. If 1 my expectations are fulfilled, and I am confident they will be, the result will doubtless give general satisfaction throughout the Dominion. Finally, I may say that if the present steady improvement in conditions generally continues, I should next year be able to make further reductions in taxation. But if this is to be possible, expenditure must be held in check, and accordingly I trust the fact that the Budget has been balanced will not be taken as an encouragement to press the Government for additional expenditure in various directions.
) Business recovery.
Summary of revenue.
Summary of expendituie.
Budget surplus.
15
8.—6.
TABLES TO ACCOMPANY THE FOREGOING STATEMENT.
Page Table No. 1. —Abstract of Receipts and Expenditure of the Financial Yeae ended 31st Maech, 1934. See Parliamentary Paper 8.-l [Part I]. Table No. 2.—The Public Debt on 31st March, 1934. See Parliamentary Paper 8.-l [Part lII], Table No. 3.—Revenue foe the Year ended 31st March, 1934, compared with the Year ended 31st March, 1933 .. .. .. .. .. .. .. .. ii Table No. 4.—Comparative Statement of the Estimated and Actual Revenue of the Consolidated Fund (Ordinary Revenue Account) foe the Financial Yeae ended 31st March, 1934 iii Table No. s.—Estimated Revenue foe 1934-35, compared with the Actual Revenue foe 1933-34 .. iv Table No. 6. —Stamp and Death Duty Revenue foe the Year ended 31st March, 1934, compared with the Year ended 31st March, 1933 .. .. .. .. .. .. iv Table No. 7. —Statement of the Customs Duties collected foe 1933-34, compaeed with 1932-33 .. v Table No. 8. —Statement of the Actual Net Expendituee of the Consolidated Fund (Oedinary Revenue Account) for the Financial Yeae ended 31st March, 1934, compaeed with the Yeae ended 31st Maech, 1933 .. .. .. .. .. v Table No. 9. —Compaeative Statement of the Appeopbiated and Actual Expendituee of the Consolidated Fund (Oedinaey Revenue Account) for the Financial Year ended 31st Maecii, 1934 .. .. .. .. .. .. .. .. vii Table No. 10. —Estimated Net Expenditure for 1934-35, compared with the Actual Net Fxpenditure for 1933-34 .. .. .. .. .. .. .. ~ ix Table No. 11. —Public Works Fund—Statement showing Net Expenditure under Appropriations for the Yeae ended 31st March, 1934, compaeed with the Yeae ended 31st March, 1933 x Table No. 12.—Statement showing the Total Ways and Means of the Public Works Fund, General Purposes Account, and the Total Net Expenditure to 31st March, 1934 .. xi Table No. 13.—Statement showing the Amount charged to " Unauthorized " in each Financial Year from Ist Apeil, 1924, to 31st March, 1934 .. .. .. .. .. xii Table No. 14. —Statement showing the available Financial Resources of the various Accounts on the 31st March, 1934, as compared with the 31st March, 1933 .. .. .. xiii Table No. 15. —Statement of Amounts paid on account of Pensions for the Financial Years ended 31st March, from 1930 to 1934 .. .. .. .. .. .. .. xiii Table No. 16.—Education Expenditure—Total Expendituee on Education out of Public Funds since 1913-14 .. .. .. .. .. .. .. .. .. xiv Table No. 17. —State Balance-sheet as at 31st Maech, 1933 .. .. .. xv Table No. 18.—Statement showing Matueity Dates and Domicile of Debt outstanding as at 3 Ist March, 1934 .. .. .. .. .. .. .. .. xvi Table No. 19. —Statement of Half-yeaely Instalments of Principal and Interest foe Repayment of Debt funded with Imperial Goveenment .. .. .. .. .. xvii Table No. 20. —Statement showing Values of Imports and Expoets of the Dominion in each Financial Yeae ended 31st March, from 1930 to 1934 .. .. .. .. .. xvii Copy of Loan Prospectus foe ovee-counter Issue, 7th November, 1932 .. .. .. .. xviii Copy of Loan Prospectus foe over-counter Issue, Ist July, 1933 .. .. .. .. .. xix Copy of Prospectus of 1933 London Loan .. .. .. .. .. .. .. .. xx Copy of Peospectus of Reseeve Bank of New Zealand .. .. .. .. .. .. xxii
i—B. 6.
8.—6.
Table No. 3 Revenue for the Year ended 31st March, 1934, compared with the Year ended 31st March, 1933.
II
Year ended Year ended 31st March, 31st March, Inorease. Decrease. 1934. 1933. Taxation— £ £ £ £ Customs .. .. .. .. 6,485,014 6,131,414 353,600 Beer duty .. .. .. .. 655,464 654,227 1,237 Sales tax .. .. .. .. 1,847,333 38,253 1,809,080 Film-hire tax .. .. .. .. 32,960 30,102 2,858 Gold-export duty .. .. .. 117,090 15,636 101,454 Highways .. .. .. .. 1,703,527 1,680,605 22,922 Stamp and death duties .. .. .. 2,712,855 2,999,278 .. 286,423 Land-tax .. .. .. .. 498,978 498,916 62 Income-tax .. .. .. .. 2,961,243 3,556,775 .. 595,532 Miscellaneous .. .. .. .. 45,366 .. 45,366 Total—Taxation .. .. .. 17,059,830 15,605,206 2,336,579 881,955 Interest — On capital liability— Working railways .. .. .. 1,085,000 850,544 234,456 Postal and telegraph .. .. .. 553,000 546,000 7,000 On Public Debt Redemption Fund .. .. 629,496 620,089 9,407 On other public moneys .. .. .. 596,360 625,077 .. 28,717 Total —Interest .. .. .. 2,863,856 2,641,710 250,863 28,717 Other receipts— Registration and other fees .. .. 218,248 197,380 20,868 National-endowment revenue .. .. 134,249 81,732 52,517 Territorial revenue .. .. .. 245,162 153,812 91,350 External affairs .. .. .. .. 76,379 80,076 .. 3,697 Justice .. .. .. .. .. 138,171 170,234 .. 32,063 Marine .. .. .. .. .. 133,110 131,473 1,637 Native .. .. .. .. .. 3,876 4,975 .. 1,099 Post and Telegraph Department profits .. 154,388 456,000 .. 301,612 Printing and Stationery .. .. .. 160,925 154,768 6,157 Stamp duties .. .. .. .. 39,198 40,900 .. 1,702 Tourist and Health Resorts .. .. 65,700 60,179 5,521 Miscellaneous .. .. .. .. 196,048 264,679 .. 68,631 Recoveries on account of expenditure of 3,609 25,397 .. 21,788 previous years From reserves .. .. .. .. 2,000,000 2,500,000 .. 500,000 Total—Other receipts .. .. 3,569,063 4,321,605 178,050 930,592 2,765,492 1,841,264 1,841,264 Totals .. .. .. .. 23,492,749 22,568,521 924,228
B—6
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, 1934.
III
Difference. Estimate for Actual for ~ - ; hfA' 1933-34. 1933-34. More | Legs> Taxation— £ £ £ £ Customs 6,200,000 6,485,014 285,014 Beer duty .. .. .. .. 650,000 655,464 5,464 Sales tax .. .. .. .. 1,750,000 1,847,333 97,333 Film-hire tax .. .. .. .. 25,000 32,960 7,960 Gold-export duty .. .. .. 140,000 117,090 .. 22 910 Highways 1,650,000 1,703,527 53,527 Stamp and death duties .. .. .. 2,600,000 2,712,855 112,855 Land-tax .. .. .. .. 450,000 498,978 48,978 Income-tax .. .. .. .. 2,700,000 2,961,243 261,243 Miscellaneous .. .. .. .. 49,000 45,366 .. 3,634 Total—Taxation .. .. .. 16,214,000 17,059,830 872,374 26,544 Interest— On capital liability— Working railways .. .. .. 791,000 1,085,000 294,000 Postal and telegraph .. .. .. 550,000 553,000 3,000 On Public Debt Redemption Fund .. 645,000 629,496 .. 15,504 On other public moneys .. .. .. 565,000 596,360 31,360 Total—Interest .. .. .. 2,551,000 2,863,856 328,360 15,504 Other receipts — Registration and other fees .. .. 208,500 218,248 9,748 National-endowment revenue .. .. 115 000 134 249 1Q' 5>4^q Territorial revenue 180,000 65 162 External Affairs .. .. .. .. 80,000 76,379 .. 3,621 Justice .. .. .. .. .. 160,000 138,171 .. 21,829 Marin e 131,310 133,110 1,800 Natlve 5,000 3,876 .. 1,124 Post and Telegraph Department profits .. 250,000 154,388 .. 95,612 Printing and Stationery .. .. .. 155,000 160,925 5,925 Stamp duties .. .. .. .. 40,000 39,198 .. 802 Tourist and Health Resorts .. .. 62,000 65,700 3,700 Miscellaneous .. .. .. .. 150,000 19ô'o48 !' Recoveries on account of expenditure of 4,000 3,609 .. 391 previous years From reserves .. .. .. .. 2,000,000 2,000,000 Total—Other receipts .. .. 3,540,810 3,569,063 151,632 123,379 1,352,366 165,427 165,427 Total revenue .. .. .. 22,305,810 23,492,749 1,186,939
B. —6.
Table No. 5. Estimated Revenue of the Consolidated Fund (Ordinary Revenue Account) for the Year ending 31st March, 1935, compared with the Actual Revenue received for the Year ended 31st March, 1934.
Table No. 6. Stamp and Death Duty Revenue for the Year ended 31st March, 1934, compared with the Year ended 31st March, 1933.
IV
Estimate Actual Differences. — — I for for ; 1934-35. 1933-34. increase. Decrease. I Taxation— £ £ £ £ Customs .. .. .. .. .. .. 7,600,000 0,485,014 1,114,986 Beer duty .. .. .. .. .. 625,000 655,464 .. 30,464 Sales tax.. .. .. .. .. .. 2,150,000 1,847,333 302,667 Filin-hire tax .. .. .. .. .. 45,000 32,960 12,040 Gold-export duty .. .. . .. ,. .. 120,000 117,090 2,910 Highways .. .. .. .. .. 1,860,000 1,703 ,'527 156,473 Stamp and death duties .. .. .. .. 2,730,000 2,712,855 17,145 Land-tax .. .. .. .. .. 480,000 498,978 .. 18,978 Income-tax .. .. .. .. „. 3,650,000 2,961,243 688,757 Miscellaneous .. .. .. .. .. 45,000 45,366 .. 366 Total—Taxation .. .. 19,305,000 17,059,830 2.294,978 49,808 InterestOn capital liability— Working Railways .. .. .. .. 950,000 1,085,000 .. 135,000 Postal and Telegraph .. .. .. .. 565,000 553,000 12,000 On the Public Debt Redemption Fund .. .. 645,000 629,496 15,504 On other public moneys .. .. .. .. 725,000 596,360 128,640 , Total—Interest .. .. 2,885,000 2,863,856 156,144 135,000 Other receipts— Registration and other fees.. .. .. .. 220,000 218,248 1,752 National-endowment revenue .. .. .. 130,000 134,249 .. 4 249 Territorial revenue .. .. .. .. 240,000 " 5^162 External Affairs .. .. .. .. .. 90,000 76,379 13,621 Justice .. .. .. .. .. .. 155,000 138,171 16,829 Marine .. .. .. .. .. .. 131,000 133,110 .. 2,110 Native .. .. .. .. .. .. 4,000 3,876 124 Printing and Stationery .. .. .. .. 160,000 160,925 .. 925 Stamp duties .. .. .. .. .. 40,000 39,198 802 Tourist and Health Resorts .. .. .. .. 68,000 65,700 2,300 Miscellaneous .. .. .. .. .. 520,000 350,436 169,564 Recoveries on account of expenditure of previous years.. 4,000 3,609 391 From reserves 1 .. .. .. .. " .. 300,000 2,000,000 .. 1,700,000 Total—Other receipts .. 2,062,000 3,569,063 205,383 1,712,446 2,656,505 1,897,254 1,897,254 Totals .. .. .. .. 24,252,000 23,492,749 759,251
Year Ended 31st March, Item. Increase. Decrease. 1934. 1933. £ £ £ £ Adhesive stamps .. .. 80,581 70,104 10,477 Duty on instruments .. 199,639 192,179 7'460 Estate and succession duty .. 1,327,508 1,469,826 .. 142,318 Gift duty .. .. .. 63,032 41,869 21,163 Impressed stamps, and duty on 173,311 168,709 4,602 cheques Stamp duty on interest .. 78,974 309,132 .. 230,158 Company licenses .. .. 84,984 83,910 1,074 Sharebrokers'licenses .. 2,178 1,583 595 Bank-note duty .. .. 279,244 268,122 11,122 Totalizator revenue .. .. 340,740 302,371 38,369 Amusements-tax .. .. 48,715 53,564 .. 4,849 Lottery duty .. .. 15,245 17,306 .. 2^061 Overseas-passenger duty .. 15,348 18,246 .. 2,898 Rates, fines, and miscellaneous 3,356 2,357 999 95,861 382,284 95,861 Totals .. .. 2,712,855 2,999,278 .. 286,423
8.—6.
Table No. 7. Statement showing Customs Duties collected for Year 1933-34, compared with the Year 1932-33.
Table No. 8. Statement of the Actual Net Expenditure of the Consolidated Fund (Ordinary Revenue Account) for the Financial Year ended 31st March, 1934, compared with the Financial Year ended 31st March, 1933.
V
1933—34. 1932—33. Increase. Decrease. £ £ £ £ Spirits, wine, and beer .. .. .. 675,096 709,739 .. 34,643 Tobacco, cigars, and cigarettes .. .. 1,611,678 1,618,537 .. 6,859 Apparel and textiles .. .. .. 686,175 853,553 .. 167,378 Motor-vehicles and parts* .. .. .. 168,854 117,739 51,115 Other goods .. .. .. .. 2,786,707 2,106,823 679,884 Primage and surtax .. .. .. 556,503 725,023 .. 168,520 Totals .. .. .. 6,485,013 6,131,414 730,999 377,400 377,400 353,599 * Excluding tire-tax and petrol-tax earmarked to Main Highways.
Year ended Year ended 31st March, 31st March, Increase. Decrease. 1934. 1933. Permanent Appropriations:— £ £ £ £ Under special Acts of Legislature,— Civil List .. .. .. .. .. 22,505 22,184 321 Debt Services— Interest .. .. .. .. .. 8,836,467 8,498,681 337,786 Amortization of debt— Sinking fund ... .. .. .. 10,859 9,855 1,004 Repayment of Public Debt Act, 1925 .. 1,392,257 1,291,182 101,075 Transfers to Loans Redemption Account .. 9,843 7,408 2'435 Administration and management .. .. 61,045 13' 016 Payments on guaranteed loans .. .. 86,861 52^001 Total—Debt Services .. .. .. 10,397,332 9,890,015 507,317 Other Services— Education 53,221 51,938 1,283 Contribution towards Singapore Naval Base .. 100,000 100,000 Other grants and subsidies .. .. .. 35,875 31,668 4,207 !! Salaries and honoraria .. .. .. 56,013 59,133 '3 120 Pensions 25,081 24,092 989 Motor-taxation— Transfers to Main Highways Account .. 1,079,097 1,059,941 19,156 Paid to boroughs .. .. .. 100,060 98,591 1^469 Expenses of collecting, &c... .. .. 22,680 21,175 1 505 Advances Or. 4,630 11,991 iē,621 Other special Acts — Cost of exchange 011 the purchase from banks of .. 470,338 .. 470 338 surplus sterling in London Exchange on remittances of public moneys to 1,797,188 342,113 1,455,075 or from countries overseas Miscellaneous .. .. .. 65,732 10,029 55,703 Total—Other Services .. .. 3,330,317 2,281,009 1,539,387 490,079 Total—Permanent Appropriations .. 13,750,154 12,193,208 2,047,025 490,079
B. —6.
Table No. 8—continued. Statement of the Actual Net Expenditure of the Consolidated Fund (Ordinary Revenue Account) for the Financial Year ended 31st March, 1934, compared with the Financial Year ended 31st March, 1933—continued.
VI
Year ended Year ended 31st March, 31st March, Increase. Decrease. 1934. 1933. : Annual Appropriations:— £ £ £ £ Vote, — Legislative.. .. .. .. .. 74,107 86,787 .. 12,680 Prime Minister's Department.. .. .. 23,991 22,181 1,810 Finance— Treasury .. .. .. .. .. 31,080 27,259 3,821 Customs .. .. .. .. .. 83,511 78,235 5,276 Land and Income Tax .. .. .. 59,367 62,395 .. 3 028 Stamp Duties .. .. .. .. 77,400 77,966 .. 's66 Audit .. .. .. .. .. 22,218 19,767 2,451 Total—Finance .. .. .. 273,576 265,622 11,548 3,594 General Administration— Public Service Commissioner's Office .. .. 4,349 4,290 59 Internal Affairs .. .. .. .. 320,414 523,418 .. 203,004 External Affairs .. .. .. .. 81,160 83,094 .. 1,934 Printing and Stationery .. .. .. 137,901 122,566 15,335 Marine .. .. .. .. .. 103,488 91,754 11,734 Labour .. .. .. .. .. 35,484 42,822 .. 7,338 Native, .. .. .. .. .. 65,163 56,744 8,419 Valuation .. .. .. .. .. 36,608 29,997 6,611 Electoral .. .. .. .. .. 5,642 5,924 .. 282 Total—General Administration .. 790,209 960,609 42,158 212,558 Law and Order— Justice and Prisons .. .. .. 241,207 251,786 .. 10,579 Crown Law Office .. .. .. .. 4,723 4,451 272 Police .. .. .. .. .. 427,344 426,988 356 " Total—Law and Order .. .. 673,274 683,225 628 10,579 Defence — Naval Defence .. .. .. .. 397,384 362,094 35,290 Defence .. .. .. .. .. 264,724 207,827 56,897 Total—Defence .. .. .. 662,108 569,921 92,187 Maintenance — Maintenance of Public Buildings .. .. 44,017 35,223 8,794 Maintenance and Repairs to Roads .. .. 9,831 5,046 4,785 Maintenance of Irrigation Works, &o. .. .. 12,687 12,102 585 Maintenance of Unopened Lines .. .. 5,868 .. 5,868 Total —Maintenance .. .. .. 72,403 52,371 20,032 Development of Primary and Secondary Industries— Lands and Survey .. .. .. .. 151,658 144,911 6,747 Agriculture .. .. .. .. 675,464 555,614 119,850 Industries and Commerce, Tourist, and Publicity 118,235 61,227 57,008 Scientific and Industrial Research .. .. 48,749 51,768 .. 3,019 Mines .. .. .. .. .. 19,540 20,802 .. L262 Transport.. .. .. .. .. 23,096 17,195 5,901 Total — Development of Primary and 1,036,742 851,517 189,506 4,281 Secondary Industries Social Services— Health .. .. .. .. .. 741,846 708,449 33,397 Mental Hospitals .. .. .. .. 233,501 240,047 .. 6,546 Education.. .. .. .. .. 2,526,078 2,620,226 .. 94,148 Pensions .. .. .. .. .. 3,260,109 3,139,225 120,884 National Provident and Friendly Societies .. 80,285 89,266 .. 8,981 Total—Social Services.. .. .. 6,841,819 6,797,213 154,281 109,675 Unauthorized Expenditure,— Services not provided for .. .. .. 3,644 45,725 .. 42,081 Total —Annual Appropriations .. .. 10,451,873 10,335,171 512,150 395,448 2,559,175 885,527 885,527 Total Expenditure .. .. .. 24,202,027 22,528,379 1,673,648
8.—6.
Table No. 9. NET EXPENDITURE. Comparative Statement of the Appropriated and Actual Expenditure of the Consolidated Fund (Ordinary Revenue Account) for the Financial Year ended 31st March, 1934.
VII
Net Actual Net Difference. Appropriations, Expenditure, — 1933-34. 1933-84. „ More. Less. Permanent Appropriations : — £ £ £ £ Under Special Acts of the Legislature,— Civil List .. .. .. .. .. .. 22,745 22,505 .. 240 Debt services— Interest .. 8,913,834 8,836,467 .. 77,367 Amortization of Debt— ' Sinking Fund 10)8 59 10,859 Repayment of Public Debt Act, 1925 .. .. 1,366,448 1,392,257 25 809 Transfers to Loans Redemption Account .. .. ' 9'500 ' 9 843 " '343 Securities redeemed .. .. .. ' ' i 'ooo Administration and Management .. .. 55'000 6.1 045 6 045 Payments on Guaranteed Loans .. .. .. 86'861 .' ' i'979 Total—Debt services .. .. .. 10,445,481 10,397,332 32,197 80,346 Other services— Education 53>2 2i 53 221 Other Grants and Subsidies 130,800 135,875 5 075 oaiaries and Honoraria .. .. .. 55,450 56 013 563 Pensions .. .. .. .. .. .. 1,000 !! Motor-taxation .. .. .. .. .. 1,179,000 1,201,837 22,837 S ge • V A " •• •• •• 1,790,000 1,797,188 7,188 Other Special Acts 53;470 61,102 7,632 Total—Other services .. .. .. 3,286,022 3,330,317 44,295 ~ Total—Permanent Appropriations .. .. 13,754,248 13,750,154 76,492 80,586 Annual Appropriations :— Vote, — Legislative .. .. .. .. .. 81,614 74,107 .. 7,507 Prime Minister's Department .. .. 22,377 23 991 1 614 Finance— fWnmJ 34,133 31 ' 080 •• 3,053 Customs .. 86 710 83 511 Land and Income Tax 63j360 59>367 g' Stamp Duties .. .. .. .. .. 81,455 77,400 .. 4'o55 Audlt •• •• •• •• •• 23,480 22,218 .. 1)262 Total—Finance .. .. .. .. 289,138 273,576 .. 15,562 General AdministrationPublic Service Commissioner's Office .. .. .. 4,965 4 349 616 Internal Affairs .. .. .. .. _ " 5 208 External Affairs 87;700 8I16Q > Printing and Stationery 145,768 137,901 .. 7 867 J 1 " 1116 •• •• •• •• •• 106,617 103,488 .. 3*129 t T al ? our 39,618 35,484 .. 4'134 61,563 65,163 3,600 Valuation 39 314 36 6Q8 , Electoral 5,700 5,642 .. 58 Total—General Administration .. .. 816,867 790,209 3,600 30,258 Law and Order— Justice 257,917 241,207 .. 16,710 Crown Law Office 5, 10 9 4,723 386 Follce 436,068 427,344 .. 8,724 Total—Law and Order .. .. .. 699,094 673,274 .. 25,820 Defence— Naval Defence .. .. .. .. .. 405,245 397,384 .. 7 861 Uetence •• •• •• 283,703 264,724 .. 18^979 Total—Defence .. .. .. .. 688,948 662,108 .. 26,840 Maintenance— Maintenance of Public Buildings .. .. .. 59,000 44 017 14 983 Maintenance and Repairs to Roads .. .. .. 11,'600 9'831 " ]7f9 Maintenance of Irrigation Works, &c. .. .. .14 000 12'687 " 1313 Maintenance of Unopened lines .. .. .. 5 868 " 13' Total—Maintenance .. .. .. .. 90,600 72,403 .. 7s~, 1 97
8.—6.
Table No. 9 —continued. NET EXPENDITURE —continued. Comparative Statement of the Appropriated and Actual Expenditure of the Consolidated Fund (Ordinary Revenue Account) for the Financial Year ended 31st March, 1934—cntd.
VIII
Net Actual Net Difference. — Appropriations, Expenditure, — 1933-34. 1933-34. Mor( , Less . ; Annual Appropriations—continued. £ £ £ £ V ote—continued. Development of Primary and Secondary Industries — Lands and Survey .. .. .. .. .. 171,909 151,658 .. 20,251 Agriculture.. .. .. .. .. .. 689,172 675,464 .. 13,708 Industries and Commerce, Tourist, and Publicity .. 119,617 118,235 .. 1,382 Scientific and Industrial Research .. .. .. 47,727 48,749 1,022 Mines .. .. .. .. .. .. 24,134 19,540 .. 4,594 Transport .. .. .. .. .. .. 25,594 23,096 .. 2,498 Total —Development of Primary and Secondary 1,078,153 1,036,742 1,022 42,433 Industries Social ServicesHealth .. .. .. .. .. .. 749,266 741,846 .. 7,420 Mental Hospitals .. .. .. .. .. 252,000 233,501 .. 18,499 Education .. .. .. .. .. .. 2,560,015 2,526,078 .. 33,937 Pensions .. .. .. .. .. .. 3,290,069 3,260,109 .. 29,960 National Provident and Friendly Societies .. .. 84,457 80,285 .. 4,172 Total—Social Services .. .. .. 6,935,807 6,841,819 93,988 Unauthorized Expenditure,— Services not provided for .. .. ... .. .. 3,644 3,644 Total —Annual Appropriations .. .. 10,702,598 10,451,873 9,880 260,605 86,372 341,191 86,372 TOTAL Expenditure .. .. .. .. 24,456,846 24,202,027 .. 254,819
8.—6.
Table No. 10. Estimated Net Expenditure of the Ordinary Revenue Account for 1934-35, compared with Actual Net Expenditure for 1933-34.
ii—B. 6.
IX
Estimate Actual I Difference. for for 1934-35. 1933-34. Increase. Decrease. Permanent Appropriations, — £ £ £ £ Civil List .. .. .. .. .. 23,637 22,505 1,132 Debt services— Interest .. .. .. .. .. 8,119,497 8,836,467 .. 716,970 Sinking Fund .. .. .. .. .. 10,859 10,859 Repayment of Public Debt .. .. .. 1,546,000 1,392,257 153,743 Administration and Management .. .. .. 49,500 61,045 .. 11,545 Payments of Guaranteed Loans, Redemptions, and 51,340 96,704 .. 45,364 Transfers . . Total—Debt services .. .. .. 9,777,196 10,397,332 153,743 773,879 Under Special Acts of the Legislature— Education .. .. .. .. .. 87,207 53,221 33,986 Other Grants .. .. .. .. .. 135,500 135,875 .. 375 Salaries and Honoraria .. .. .. .. 58,977 56,013 2,964 Pensions .. .. .. .. .. 40,375 25,081 15,294 Motor Taxation .. .. .. .. .. 1,361,500 1,201,837 159,663 Exchange .. .. .. .. .. 1,305,000 1,797,188 .. 492,188 Other Special Acts .. .. .. .. 63,550 61,102 2,448 3,052,109 3,330,317 214,355 492,563 Total—Permanent appropriations .. 12,852,942 13,750,154 369,230 1,266,442 Annual Appropriations,— Legislative .. .. .. .. .. 81,258 74,107 7,151 Prime Minister's Department .. .. .. 22,900 23,991 .. 1,091 Finance— Treasury .. .. .. .. .. 37,902 31,080 6,822 Customs .. .. .. .. .. 84,000 83,511 489 Land and Income Tax .. .. .. .. 62,689 59,367 3,322 Stamp Duties .. .. .. .. .. 76,000 77,400 .. 1,400 Audit .. .. .. .. .. .. 24,833 22,218 2,615 285,424 273,576 13,248 1,400 General Administration — Public Service Commissioner's Office .. .. 4,788 4,349 439 Internal Affairs .. .. .. .. .. 304,907 320,414 .. 15,507 External Affairs .. .. .. .. 92,433 81,160 11,273 Printing and Stationery .. .. .. .. 147,000 137,901 9,099 Marine.. .. .. .. .. .. 106,500 103,488 3,012 Labour .. .. .. .. .. 37,629 35,484 2,145 Native .. .. .. .. .. .. 59,000 65,163 .. 6,163 Valuation .. .. .. .. .. 38,000 36,608 1,392 Electoral .. .. .. .. .. 5,262 5,642 .. 380 795,519 790,209 27,360 22,050 Law and Order— Justice and Prisons .. .. .. .. 241,902 241,207 695 Crown Law .. .. .. .. .. 5,434 4,723 711 Police .. .. .. .. .. .. 436,000 427,344 8,656 683,336 673,274 10,062 Defence — Naval Defence .. .. .. .. .. 453,037 397,384 55,653 Defence .. .. .. .. .. 524,600 264,724 259,876 977,637 662,108 315,529 Maintenance of Public Works and Services .. .. 83,000 72,403 10,597 Development of Primary and Secondary Industries— Lands and Survey .. .. .. .. 165,389 151,658 13,731 Agriculture !. .. .. .. .. 479,992 675,464 .. 195,472 Industries and Commerce, Tourist, and Publicity .. 119,000 118,235 765 Scientific and Industrial Research .. .. .. 49,000 48,749 251 Mines .. .. .. .. .. .. 24,000 19,540 4,460 Transport .. .. .. .. .. 25,000 23,096 1,904 862,381 1,036,742 21,111 195,472 Social Services— Health.. .. .. .. .. .. 755,000 741,846 13,154 Mental Hospitals .. .. .. .. 233,000 233.501 .. 501 Education .. .. .. .. .. 2,531,515 2,526,078 5.437 Pensions .. .. .. .. .. 3,359,998 3,260,109 99,889 National Provident and Friendly Societies .. .. 81,000 80,285 715 6,960,513 6,841,819 119,195 501 Services not provided for .. .. .. .. 3,644 .. 3,644 Total—Annual appropriations .. .. 10,751,968 10,451,873 524,253 224,158 893,483 1,490,600 893,483 Totals .. .. .. .. 23,604,910 24,202,027 .. 597,117
8.—6.
Table No. 11. PUBLIC WORKS FUND. Statement showing the Net Expenditure under Appropriations for the Year ended 31st March, 1934, compared with the Year ended 31st March, 1933.
X
Yesr ended Ye&r ended inprpniA Dprrpasfi Vote 31st March, 1934. 31st March, 1933. Increase. i>ecrea..e. £ £ £ £ Public Works, Departmental .. .. 98,703 104,904 .. 6,201 Railway-construction .. .. Cr. 13,894 69,603 .. 83,497 Railways Improvement and Additions to 146,005 91,250 54,755 Open Lines Public Buildings— General .. .. .. .. 642 2,107 .. 1,465 Courthouses .. .. .. 72 970 .. 898 Education Buildings .. .. 52,239 52,623 .. 384 Prison Buildings and Works .. 1,018 2,026 .. 1,008 Police-stations .. .. .. 74 1,022 .. 948 Postal and Telegraph .. .. 21,078 2,763 18,315 Mental Hospital Buildings .. .. 73,021 28,756 44,265 Health and Hospital Institutions .. 1,248 300 948 Timber-supply and Sawmills, &c. .. * Acquisition and Operation of Quarries .. * Lighthouses .. .. .. 1,276 688 588 .. Harbour-works .. .. .. 11,988 Cr. 5,277 17,265 Development of Tourist Resorts .. 13,510 14,454 .. 944 Roads, &c. .. .. .. .. 359,671 396,559 .. 36,888 Telegraph Extension .. .. .. 144,160 99,999 44,161 Lands, Miscellaneous .. .. 71,825 38,906 32,919 Irrigation, Water-supply, and Drainage.. 66,838 53,290 13,548 Swamp Land Drainage .. .. 13,959 14,807 .. 848 Plant, Material, and Services .. .. 1,421 Cr. 45,463 46,884 Settlement of Unemployed Workers .. 172,109 118,722 53,387 Native Land Settlement .. .. 179,485 .. 179,485 506,520 133,081 133,081 Totals .. .. .. 1,416,448 1,043,009 373,439 ♦ Now included under " Plant, Materia], and Services."
B. 6.
Table No. 12. Statement showing the Total Ways and Means of the Public Works Fund, General Purposes Account, and the Total Net Expenditure to the 31st March, 1934.
XI
WAYS AND MEANS. Loans : s. d. £ 8. 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 .. .. •• •• Z 5 ®'9®9 9 9 New Zealand Loan Act, 1876 .. .. •• •• 750,000 0 0 New Zealand Loan Act, 1877 2,200,000 0 0 New Zealand Loan Act, 1879 .. •. •• •• 5,000,000 0 0 New Zealand Loan Act, 1882 .. .. •• •• 3 '229'999 9 2 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, 1864 .. .. •• •• } >600,000 1! 2 New Zealand Loan Act, 1886 .. .. •• •• 1*325,000 0 0 District Railways Purchasing Acts, 1885 and 1886 .. •• 479,487 7 11 New Zealand Loan Act, 1888 a a Native Land Purchase Act, 1892 .. . . •• •• 149,700 0 0 Lands Improvement and Native Lands 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 Act, 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 Public Works and Land Settlement Act, 1900 .. .. 1,011,600 0 0 Aid to Public Works and Land Settlement Act, 1901 .. •• 1,250,000 0 0 Aid to Public Works and Land Settlement Act, 1902 .. .. 1,750,000 0 0 Aid to Public Works and Laud Settlement Act, 1903 .. .. 997,690 0 0 Aid to Public 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 Act, 1906 .. ■. 989,700 0 0 Aid to Public 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 Public 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 Act, 1911 .. .. 1,500,000 0 0 Aid to Public Works and Land Settlement Act, 1912 .. • • 1,748,900 0 0 Aid to Public Works and Land Settlement Act, 1913 .. .. 1,750,000 0 0 Aid to Public Works and Land Settlement Act, 1914 .. .. 3,000,000 0 0 Aid to Public Works and Land Settlement Act, 1921 .. •• 5,060,613 0 3 Aid to Public Works and Land Settlement Act, 1922 .. 4,408,860 12 3 Finance Act, 1909 .. .. •• •• •• •• a a Finance Act, 1915, and New Zealand Loans Act, 1915 .. 2,000,000 0 0 Finance Act, 1916 l '«Ko o o Finance Act, 1917 »50,000 0 0 Finance Act, 1918 (No. 2) n n Finance Act, 1919, Section 5 .. •• 750,000 0 0 Finance Act, 1920, Section 15 .. •• •• 2,500,000 0 0 Finance Act, 1921, Section 10 .. •. .. •• 2,673,111 10 11 Finance Act, 1923, Section 2 .. .. .. •• £>«*06,608 17 6 Finance Act, 1924, Section 2 .. .. .. •• 2,086,274 6 11 Finance Act, 1925, Section 2 M51.450 10 2 Finance Act, 1926, Section 2 .. .. •. 5,220,134 10 7 Finance Act, 1927 (No. 2), Section 2 j 4,319,694 10 3 Finance Act, 1928, Section 2 .. .. •• •• T ? Finance Act, 1929, Section 2.. .. .. .. •• 4,017,764 4 6 Finance Act, 1930 (No. 2), Section 2 3-000,000 9 9 Finance Act, 1931 (No. 4), Section 2 i 1.358,380 0 0 Stock issued for Expenses of Conversion, 1930-31 .. •. 360,835 18 0 Post and Telegraph Act, 1908 .. .. •• •• 200,000 0 0 Midland Railway Petitions Settlement Acts, 1902 and 1903 .. 150,000 0 0 Paeroa-Waihi Railways Act, 1903 .. .. •• 75,000 0 0 Waikaka Branch Railway Act, 1905 .. .. •• 50,000 0 0 Appropriation Act, 1912 15.000 0 0 Irrigation and Water-supply Act, 1912 .. .. • ■ j 100,000 0 0 Balances transferred from Separate Accounts, 1931-32 — £ s. d. Waihou and Ohinemuri Rivers Improvement 5,518 10 10 Account Education Loans Account .. .. .. 12,867 3 9 Railways Improvement Authorization Act 1914 420,783 17 4 Account Native Land Settlement Account .. .. 3,445 4 10 £ s. d. Hauraki Plains Settlement Account 44 10 4 Rangitaiki Land Drainage Account 10,797 5 0 Swamp Land Drainage Account .. 9,008 19 1 19,850 14 5 Utilized for redemptions .. 19,850 14 5 ~~ " 1_ J 442,614 16 9 107,433,453 0 8 Receipts in Aid:— Amount transferred from Consolidated Fund .. .. •• 14,55o,UUU U U 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 .. .. 19,9oo 1 6 Receipts under Section 16 of the Reserves and other Lands Disposal 21,890 4 5 and Public Bodies Empowering Act, 1912 Carried forward .. .. •• 14,922,474 9 4 107,433,453 0 8
8.—6.
Table No. 12 —continued. Statement showing the Total Way's and Means of the Public Works Fund, General Purposes Account, and the Total Net Expenditure to the 31st March, 1934—continued.
Table No. 13. Statement showing the Amount charged to "Unauthorized" in each Financial Year from 1st April, 1924, to 31st March, 1934.
XII
WAYS AND MEAN'S —continued. £ a. d. £ s, d. Brought forward .. .. .. 14,922,474 9 4 107,433,453 0 8 Receipts in Aid —continued. Special Receipts under Section 9 of the Railways Construction Act, 60,616 3 0 1878 Special Receipts under the Ellesmere Lake Lands Acts, 1888 and 68,183 0 3 1893 Special Receipts under the Railways Authorization and Manage- 2,257 1 9 ment Act, 1891 Special Receipts under the North Island Main Trunk Railway Loan 114,550 19 6 Application Act, 1886 Sinking Funds released .. .. .. .. .. 506,819 19 3 Finance Act, 1932, Section 7 (4) — Sale of land under Hauraki Plains Act, 1926 .. .. .. 2,021 3 I. Settlement of Unemployed Workers .. .. .. .. 7,584 3 8 Receipts under Section 12 of Native Laud Amendment Act, 1932.. 2,128 14 1 15,686,635 13 11 £123,120,088 14 7 NET EXPENDITURE. Expenditure on— Immigration .. .. .. .. .. .. 3,313,791 3 1 Public Works, Departmental .. .. .. .. .. 2,975,391 6 0 Railways, including Surveys of New Lines and Payment to Midland 56,333,420 8 10 Railway Bondholders Roads .. .. .. .. .. .. .. 22,171,077 16 8 Land-purchases .. .. .. .. .. .. 2,054,023 13 8 Settlement of Unemployed Workers .. .. .. .. 290,830 17 3 Development of Mining .. .. .. .. .. 881,015 0 11 Telegraph Extension .. .. .. .. .. .. 11,424,605 1 2 Public Buildings .. .. .. .. .. ,. 11,770,518 7 8 Lighthouses, Harbour-works, and Harbour-defences .. .. 1,312,524 17 2 Contingent Defence .. .. .. .. .. .. 1,401,847 5 3 Rates on Native Lands .. .. .. .. .. 68,671 16 10 Thermal Springs .. .. .. .. .. .. 14,599 13 2 Development of Tourist Resorts .. .. .. .. 691,298 6 10 Lands Improvement .. .. .. .. .. .. 809,763 17 5 Swamp Land Drainage .. .. .. .. .. 28,469 13 0 Plant, Material, and Services .. .. .. .. ,. 129,644 17 3 Charges and Expenses of raising Loans .. .. .. .. 3,827,707 3 7 Coal-mines .. .. .. .. .. .. .. 10,835 8 0 Interest and Sinking Fund .. .. .. .. .. 218,500 0 0 Irrigation and Water-supply .. .. .. .. .. 1,126,524 5 0 Timber Supply, Sawmills, &e. .. .. .. .. .. * Acquisition and Operation of Quarries .. .. .. .. * Motor Transport Service .. .. .. .. .. 33,635 5 3 Transfer to Main Highways Account, Construction Fund .. .. 1,226,000 0 0 Native Land Settlement .. .. .. .. .. 179,432 8 1 122,294,128 12 1 Balance on 31st March, 1934,— Cash in the Public Account .. .. .. .. .. 767,112 14 0 Investments.. .. .. .. .. . 58,847 8 6 — 825,960 2 6 £123,120,088 14 7 * Included in plant, material, and services.
Consolidated Fund.—Revenue Account. j Financial Tear. — -p — Ac Sb. PDB^^ 0IlKa To»*. 86rT 4aed n for P1 '°"l Excess of Votes -! T <>tal. _J I _[ ! £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. 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 .. 30,265 7 9 26,257 3 7 56,522 11 4 30,811 19 2 23,665 13 8 111,000 4 2 1926-1927 .. 27,913 18 1 45,418 12 4 73,332 10 5 1,581 10 7 2,801 18 9 77,715 19 9 1927-1928 .. 15,942 15 4 51,560 10 5 67,503 5 9 10,740 8 2 49,604 6 11 127,848 0 10 1928-1929 .. 7,959 7 3 43,312 14 4 51,272 1 7 11,891 14 4 20,639 17 2 83,803 13 1 1929-1930 .. 22,205 12 8 41,407 0 0 63,612 12 8 111,438 6 11 24,827 8 0 199,878 7 7 1930-1931 .. 4,585 0 0 129,903 7 1 134,488 7 1 3,450 8 7 1,586 13 11 139,525 9 7 1931-1932 .. 18,698 6 0 19,182 17 10 37,881 3 10 21,577 6 4 1,376 10 3 60,835 0 5 1932-1933 .. 45,724 18 4 16,005 18 3 61,730 16 7 57,667 110 40,160 8 3 159,558 6 8 1933-1934 .. 3,643 17 10 8,326 0 3 11,969 18 1 8,288 2 5 1 12 5 20,259 12 11
8.—6.
Table No. 14. Statement showing the available Financial Resources of the various Accounts on the 31st March, 1934, as compared with the 31st March, 1933.
Table No. 15. PENSIONS. Statement of Amounts paid on Account of Pensions for the Financial Years ended 31st March from 1930 to 1934.
XIII
1934. 1933. Account. Balance Liabilities JXXta Ba ' anc « j Liabilities 31st March, 31st March, 31st March, I 31st March, ™ is !" t g 1934. 1934. on \ 3 Jg| prl1 ' 1933. ! 1933. on prl1 ' • : __J I ' Consolidated Fund — £ £ £ £ £ £ Ordinary Revenue .. .. 16,027,720 221,773 .. 613,164 219,090 Public Works Fund— General Purposes .. .. .. 825,960 184,202 3,761,634 1,320,971 127,956 4,621,199 Electric Supply .. .. .. 416,260 51,274 488,990 133,430 94,128 1,033,990 Electric Supply Sinking Fund .. 107,871 .. .. 83,792 ' Bank of New Zealand Shares .. 1,859,375 .. .. 1,859,375 Discharged Soldiers Settlement .. 427,969 109 .. 260,369 438 Land for Settlements .. .. 72,570 3,963 6,278,000 57,805 13,103 6,278,000 Loans Redemption .. .. .. 414,500 .. .. 303,658 Loans Redemption Account Part II .. .. .. 6,398 Conversion Account Main Highway— Revenue Fund .. .. .. 181,907 71,672 .. 204,891 63,962 Construction Fund .. .. 68,507 28,637 487,400 57,787 20,327 690,400 Native Land Settlement .. .. .. .. .. 3,445 49,156 Public Debt Repayment .. .. 47,963 .. .. 429,117 Reserve Fund .. .. .. 406,692 .. .. 478,549 189,315 Samoan Loan Suspense .. .. .. .. 4,800 .. .. 4,800 Silver and Bronze Coinage Account .. 22,714 '307 State Coal-mines .. .. .. 66,101 15,094 55,000 65,976 15,469 55,000 State Coal-mines Sinking Fund .. 8,422 .. .. 8,299 State Forests .. .. .. 25,792 7,025 606,225 14,299 5,141 681,225 Unemployment Fund .. .. 621,518 220,000 .. 424,426 154,801 Working Railways .. .. .. 1,731,561 208,392 .. 1,265,300 207,158 State Advances Loan .. .. 171 .. 10,263,115 171 .. 10,215,145 Additional Unexhausted Authorities for raising Loans. Government Accident Insurance Act, 1908 .. .. 23,000 .. .. 23,000 State Fire Insurance Act, 1908 .. . . .. 98,000 .. .. 98,000 Totals .. .. .. 23;333,573 1,012,448 22,066,164 7,591,222 1,160,044 23,700,759
Year ended 31st Maroh, 1930. j 1931. 1932. j 1933. 1934. £ £ £ £ £ War 1,204,422 1,245,499 1,261,778 1,217,586 1,246,441 Old-age .. .. .. 1,105,069 1,158,788 1,277,107 1,271,157 1,350,982 Widows' .. .. .. 322,886 325,998 340,162 311,317 302,020 Miners' .. .. .. 51,676 58,441 69,785 62,563 56,810 MaoriWar .. .. .. 11,510 9,101 7,582 5,831 4,522 Epidemic .. .. .. 7,309 6,322 5,580 4,197 3,290 Civil Service Act, 1908 .. 10,547 9,251 7,861 6,453 5,917 Defence Act, 1909 .. .. 2,573 2,620 2,483 2,176 2,163 Judicature Act, 1908 .. 3,333 2,285 1,833 1,833 2,272 Police .. .. .. 789 1,741 1,054 1,166 1,384 Blind .. .. .. 14,716 15,796 16,710 18,065 19,306 Family Allowance .. .. 60,876 63,608 90,100 122,810 146,766 Sundry .. .. .. 6,589 6,588 6,501 6,627 8,022 Totals .. .. 2,802,295 2,906,038 3,088,536 3,031,781 3,149,895
8.—6.
Table No. 16. EDUCATION EXPENDITURE. Total Expenditure on Education out of Public Funds, including University, Primary, Secondary, and Higher Education, Technical and Special Schools, and Child Welfare, 1913-14 to 1933-34.
In addition, post-primary schools and University colleges derive direct income (amounting for 1933-34 to £54,625) 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 1926-27 .. .. .. •• •• 10,337 1927-28 .. .. -• •• 12,474 1928-29 .. • • • ■ •• •• 12,197 1929-30 .. .. • • ■ • - 6,357 1930-31 .. .. •• •• •• 6,671 1931-32 .. • •• •• 7,768 1932-33 .. .. .. •• ..6,424 1933-34 .. •• •• 3,846
XIV
Loan-money: Erection Consolidated Fund. of School Buildings and Residences. p er ]-[ ea[ j Vote, Subsidies of • l at , lonal Education R even ue _ , Public Education PopulaSpecial Endow- (excluding from Teachers Works Loans P Acts. ment Superannua- Reserves . Super- Fund Aco(mnt . Revenue. tion animation Subsidies). Eund. j — ——— — ■ r £ £ £ £ £ £ £ £ £ 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 1 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 1 14 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 2,752,271 118,973*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 1926-27 .. 115,499 88,545 2,954,597 119,073* 71,452 .. 550,954 3,900,120 2 14 11 1927-28 .. 127,289 90,518 2,974,615 123,247*71,497 .. 369,134 3,756,300 2 12 1 1928-29 .. 137,233 94,934 3,067,296 127,444* 71,749 .. 375,423 3,874,079 2 13 1 1929-30 .. 140,561 87,420 3,193,828 129,531*146,781 .. 428,764 4,126,885 2 15 10 1930-31 .. 125,331 94.506 3,230,200 106,405* 46,907 .. 491,974 4,095,323 2 14 8 1931-32 .. 82,163 79,375 2,851,922 88,207*46,935 259,148 .. 3,407,750 2 4 11 1932-33 .. .. 51,938 2,574,929 85,716* 47,043 52,623 .. 2,812,249 1 16 9 1933-34 .. .. 53,221 2,480,055f 107,129 46,784 51,435 .. 2,738,624 115 6 * Net revenue after deducting expenses and cost of collection. •f Includes £760 charged to "Unauthorized."
8.—6.
Table No. 17. State Balance-sheet as at 31st Mabch, 1933. Liabilities. Assets. Capital—■ £ s. d. Land and buildings, including Crown, settlement and £ s. d. Public debt* .. .. .. 284,872,957 15 5 endowment land, departmental land and buildings.. 41,863,827 11 4 Rural Advances bonds .. .. 4,213,050 0 0 State forests, nurseries, and plantations .. .. 37,966,683 18 7 Public Debt Redemption Fund .. 19,225,644 10 6 Railways, including permanent-way and works, rollingCreditors— stock, and unopened lines .. .. .. 58,843,309 3 5 Sundry .. .. .. 1,698,538 6 6 Telegraphs, telephones, and wireless systems .. 10,929,750 12 2 Interest on debentures and stock Electrical schemes .. .. .. .. 12,109,989 15 7 due and unpaid .. .. 15,911 9 2 Drainage and irrigation schemes .. .. .. 3,908,354 1- 2 Interest accrued but not due .. 833,171 3 5 Collieries, sawmills, quarries, &c. .. .. .. 403,061 9 0 Wages and other payments accrued 8,326 1 4 Armament and military stores, aviation equipment .. 2,903,408 11 8 Payments in advance, &c. .. 423,864 4 4 Oyster-beds, fish-hatcheries, equipment, &c. .. 123,647 10 7 Reserves — Wharves, bridges, harbour-works, lighthouses, &c. .. 827,671 14 3 General .. .. .. 3,845,881 4 3 Plant, material, and furniture .. .. .. 3,293,915 13 6 Sinking Fund and reserves for loan Libraries, books, museum exhibits, stationery, stamps, redemption .. .. .. 3,515,827 7 4 &c. .. .. .. .. .. .. 371,593 17 9 Depreciation .. .. .. 7,286,761 11 2 Live and dead stock, farm crops, &o. .. . . 177,393 1 4 Fire, accident, and marine insurr Government steamers, launches, motor-cars, &c. .. 573,274 16 4 ance, bad debts, &c. .. .. 749,219 5 7 Advances on loan or mortgage .. .. .. 58,953,799 8 5 Amount held on deposit .. .. 472,680 10 9 Debtors— Suspense .. .. .. 122,741 10 4 Sundry .. .. .. .. .. 2,556,584 11 6 Post Office investment and war-loan Unpaid purchase-price of land and buildings .. 1,466,200 3 2 certificates .. .. .. 2,003,531 8 9 Postponed rents, &c. .. .. .. .. 373,045 5 0 Miscellaneous liabilities .. .. 26,000 17 10 Interest and rent, due and unpaid, and due and Excess of assets over liabilities .. 56,720,625 610 accrued .. .. .. .. .. 3,001,897 11 6 Principal and interest .. .. .. .. 707,752 15 3 Special investments — Nauru phosphate rights .. .. .. 565,040 0 0 Bank of New Zealand shares .. .. .. 2,109,375 0 0 Public Trust Office (Public Debt Redemption Fund) 7,966,688 11 2 Special assets of various accounts — Native land schemes, &c. .. .. .. 849,606 11 9 Unallocated loan charges .. .. .. 577,697 0 0 Earthquake expenditure .. .. .. 53,931 18 8 Payments in advance .. .. .. .. 224,201 3 5 Properties acquired by Crown and properties in course of realization .. .. .. .. .. 854,605 16 11 Investments — Reserve Fund .. .. .. .. 377,702 3 4 Sinking funds.. .. .. .. .. 348,099 6 5 Miscellaneous, including investment of Treasury accounts .. .. .. .. .. 8,692,751 5 2 National Development Account— Expenditure on—• £ s. d. Main highways, roads, &c. .. 27,246,371 19 1 Development of mining .. 867,727 15 11 Education .. .. 8,073,576 15 9 Immigration .. .. 3,320,005 14 7 Harbour-works .. .. 1,033,787 310 Land-development .. 636,827 1 3 Cost of raising loans . . 41,922 10 3 Settlement ol unemployed workers .. .. 118,721 14 1 41,338,940 14 9 Other loan expenditure— War expenditure .. .. 66,534,446 2 5 Naval defence . . .. 1,389,656 1 5 Local bodies .. .. 3,037,229 19 2 Maori-land settlement .. 247,050 0 0 Miscellaneous .. .. 6,159,391 3 1 77,367,773 6 1 Cash — New Zealand Government Indemnity Exchange Account .. .. .. .. . . 1,530,000 0 0 Public Account .. .. .. .. 1,335,021 9 5 Receiver-General .. .. .. .. 12,978 0 3 State Advances Office Account .. .. .. 104,083 1 2 Post Office or Post Office Savings-bank .. .. 299,272 5 11 Deposit accounts .. .. .. .. 20,564 5 2 In hand and in transit .. .. .. .. 41,044 6 5 Miscellaneous assets .. .. .. .. 10,194 16 0 £386,034,732 13 6 £386,034,732 13 6 Notes. —(1) To account for the whole public debt, loan expenditure on war and other purposes not represented by tangible assets has been included in the assets under the heading of " Other loan expenditure." Interest is received in respect to portion of the local bodies' loan expenditure. (2) Included in the above Balance-sheet are assets and liabilities from the Native Land Settlement Account and New Zealand Reparation Estates Balance-sheets, which had not been audited at the date of preparation of the State Balance-sheet. (3) Contingent liabilities— Subsidies (not including accumulated interest) short paid to— £ s. d. Teachers' Superannuation Fund .. .. .. .. 1,169,084 0 0 Public Service Superannuation Fund .. .. .. 1,898,843 0 0 3,067,927 0 0 Excess of subsidies recommended by Actuary over subsidies paid : Railways Superannuation Fund . . . . . . .. 1,020,000 0 0 £ s. d. 4,087,927 0 0 Local authorities loans guaranteed by Government .. 3,702,219 0 0 Less accumulated sinking fund .. .. 817,023 17 11 2,885,195 2 1 £6,973,122 2 1 * The analysis of the public debt on 31st March, 1933, was as follows: — £ Ordinary debt .. .. .. .. .. .. .. 169,826,539 War debt .. .. .. .. .. .. .. 66,724,765 State Advances debt .. .. .. .. .. 35,235,841 Discharged soldiers debt .. .. .. .. .. .. 9,120,476 Treasury bills issued in anticipation of revenue, outstanding 31st March, 1933 1,585,000 Treasury bills issued under Banks Indemnity (Exchange) Act, 1932-33, outstanding, 31st March, 1933 .. .. .. .. .. 2,380,337 £284,872,958
XV
8.—6.
Table No. 18 PUBLIC DEBT. Statement showing Maturity Dates and Domicile of Debt outstanding as at 31st March, 1934.
XVI
Due in Year of Maturity New Zealand _ Total. (Year ended 31st March). London. Australia. Public. Departments. £ £ £ £ £ Overdue 500 43,870 .. 44,370 1925-45 2,090,909 .. .. •• 2,090,909* 1933-4-3+ . .. .. 3,989,100 .. 10,900 .. 4,000,000 1934-35 .. 37,000 725,700 319,260$ .. 1,081,960 1935-36 .. .. •• 120,800 186,700 24,620 .. 332,120 1935-451 .. • • 10,135,800 .. •• •• 10,135,800 1936-37 . .. •• 7,500 667,750 32,730 .. 707,980 1936-51+ •• •• 5,869,989 .. .. •• ! 5,869,989 1937-38 .. .. . • •• 92,200 254,300 .. 346,500 1937-4011 .. .. •• •• 12,430,835 .. ! 12,430,835 1938-39 .. .. 4,000 3,000 19,330 .. 1938-41 .. .. •• 2,327,850 .. 2,327,850 1939-40 .. .. 17,173,191 .. 17,141 .. 1940-43H •• 13,747,390 .. 13,747,390 1940-41 ... .. ■ • 15 15 1941-42 !. 17,300 39,600 .. 56,900 1943-44 .. .. •• 7,339,656 .. .. •• 7,339,656 1943-4611 .. .. •• •• 10,301,785 .. 10,301,785 1943-63 10,505,989 .. 378,639 .. i0,884,628 1944-45 .. .. .. 7,780,408 .. .. 7,780,408 1945-46 22,543,590 .. 2,500 .. 22,546,090 1946-49 •• 9,475,395 .. 1947-48 . .. .. 11,221,609 .. •• 11,221,609 1948-49 .. .. .. 10,500 10,500 1948-58 t :: :: .. 19,225,405 .. .. .. 1949-50 7,500,000 .. .. •• 1949-52« ■■ 13,724,655 ,. 1949-54+ .. .. •• 5,000,000 .. .. •• 5,000,000 1950-51 .. .. •• 1,250,000 1,215,000 .. •• 1952-5511 . •• •• 11,175,530 .. 11,175,530 1955-56 ;; ;; .. .. .. .. 353,700 353,706 1956-71+ •• •• 5,000,000 .. .. 5,000,000 1956-57 .. .. •• 12,900 .. .. 4,048,020 4,060,920 1957-58 .. .. .. .. 13,425,838 37,526,037 1Q58-59 .. .. 15,626,466 15,626,466 1959-60 •• •• 8,327,885 8,327,885 160,908,105 2,908,150 74,326,345 41,792,415 279,935,015 Floating debt— . ... Treasury bills issued in anti- .. .. 3,372,109 80,000 3,452,109 cipation of revenue Treasury bills issued under .. •• 16,509,872 2,895,000 19,404,872 the Banks Indemnity (Exchange) Act, 1932-33 Totals .. .. 160,908,105 2,908,150 94,208,326 44,767,415 302,791,996 138,975,741 * Advances by Imperial Government for kState Advances purposes. f Government has option to redeem on or after the earlier date on giving notice in the London Gazette. + Includes £65,000 redemption Treasury bill and £212,500 deed security for repayment of purchase-money, Horahora electric-power works. || Government has option to redeem on or after the earlier date on giving three months notice in New Zealand Gazette. T[ Imperial Government advances funded in terms of section 8, Finance Act, 1922.
8.—6.
Table No. 19. PUBLIC DEBT. Statement of Half-yearly Instalments of Principal and Interest for Repayment of £27,532,164 advanced by the Imperial Government and funded in Terms of the Agreement dated 6th September, 1922.
Table No. 20. EXTERNAL TRADE. Statement showing the Recorded, Sterling, and New Zealand Currency Values of Imports and Exports of the Dominion in each Financial Year ended 31st March, from 1930 to 1934 (excluding Specie).
iii—B. 6.
XVII
Date Instalments paid. Interest. j Principal. 1 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 1st June, 1926 .. .. .. .. 653,078 172,887 26,084,135 1st December, 1926 .. .. .. 648,778 177,187 25,906,948 1st June, 1927 .. .. .. 644,370 181,595 25,725,353 1st December, 1927 .. .. .. 639,854 186,111 25,539,242 1st June, 1928 .. .. .. .. 635,225 190,740 25,348,502 1st December, 1928 .. .. .. 630,481 195,484 25,153,018 1st June, 1929 .. .. .. .. 625,618 200,346 24,952,672 1st December, 1929 .. .. .. 620,635 205,330 24,747,342 1st June, 1930 .. .. .. .. 615,528 210,437 24,536,905 1st December, 1930 .. .. .. 610,294 215,671 24,321,234 1st June, 1931 .. .. .. .. 604,930 221,035 24,100,199 1st December, 1931f .. .. .. .. .. 24,100.199 * Includes £200,000 paid off the Naval Defence Loan in terms of the clause by which New Zealand has the right, on giving three months' notice, to repay at par any part of the principal. f Following on the "Hoover" moratorium, the Imperial Government agreed to postpone the instalments of principal and interest due in December, 1931, and June, 1932, only one half-yearly payment was therefore made in 1931-32. Further postponements from 1st July, 1932, were agreed to by the Imperial Government. No payments were therefore made in 1932-33 and 1933-34.
Exports. Imports. Excess of Exports. Year ended As Recorded o t „ r i iri „ Full New Zealand On New „ (NewZealand E ival = nt _ As Recorded. Sterling Currency Zealand Cur- 0n ' ng Currency). Equivalent. Equivalent, rency Basis. | £ (000) £ (000) £ (000) £ (000) £ (000) £ (000) ! £ (000) 1930.. .. 48,412 47,933 49,100 49,085 49,430 -1,018* -1,152* 1931.. .. 39,527 37,198 37,938 37,656 39,833 -306*: -458* 1932.. .. 33,943 30,857 23,109 22,510 24,761 9,182 8,347 1933.. .. 37,510 32,677 22,649 22,049 25,059 12,451 10,628 1934.. .. 46,043 36,834 21,478 20,908 26,136 19,907 15,926 Totals .. 205,435 185,499 154,274 152,208 j 165,219 40,216 J 33,291 * Excess of imports.
8.—6.
Copy of Loan Prospectus for Over-counter Issue. SALE OF 5-PER-CENT DEBENTURES OR INSCRIBED STOCK. Price op Issue : Par. Currency to 15th June, 1940, repayable at Par. The 5-per-cent. Debentures and Inscribed Stock having currency to Ist September, 1937, are now withdrawn from sale, and the new issue now open for subscription in terms hereof may be withdrawn from sale at any time determined by the Minister of Finance. Capital required for General Purposes, including Redemption of Maturing Loans. Applications : — Applications, the amounts in respect of which will require to be lodged in full, will be received on and after the 7th November, 1932, and will not be accepted for less than £50 for Debentures and £100 for Inscribed Stock. The debentures will be issued in denominations of £50, £100, £500, and £1,000, or such higher denominations as may be arranged, and will be payable to bearer. Stock will not be issued for any amount under £100, and any sum applied for in excess of £100 must be a multiple of £10. Lodgments : —• Forms of application may be obtained and lodgments made at any Postal Money-order Office in New Zealand, or at any branch of the Bank of New Zealand in the Dominion, at the Treasury at Wellington, or at the District Treasury Offices at Auckland, Christchurch, and Dunedin. Provisional receipts will be issued for all payments, and in the case of investments in Debentures these receipts will be exchangeable for Debentures payable to bearer as soon as the latter can be prepared. In the case of Stock Investments, inscription certificates will be posted to investors when the amounts are inscribed. Interest: — Interest on Debentures and Stock will be paid half-yearly, on the 15th June and 15th December, and is not free of income-tax. The provisions of Part IV of the National Expenditure Adjustment Act, 1932, in relation to the Stamp Duty Charge on interest, do not apply in respect to securities issued on or after the 10th May, 1932, consequently, interest on the new securities will not be subject to the Stamp Duty Charge under that Act. Interest will accrue from the date of lodgment, and the first payment of interest will be made on the half-yearly interest date next following the date of lodgment. Interest on Inscribed Stock will be paid by dividend warrant, which will be transmitted by post or will be credited to a banking account in the Dominion, at the option of subscribers. Interest on Debentures will be paid on production of coupons, except the first payment, which will be by Treasury cheque. Both warrants and coupons will be payable, free of exchange, at the Treasury, Wellington, at any Postal Money-order Office in New Zealand, or branch of the Bank of New Zealand in the Dominion. Payment of interest on securities of this issue may by arrangement and at the discretion of the Minister, be made beyond the Dominion subject to such conditions as the Minister may determine. Repayment at Maturity : — Repayment will be made at par on 15th June, 1940, at the Treasury, Wellington, or at any branch of the Bank of New Zealand in the Dominion. Repayment beyond the Dominion may be made by arrangement and at the discretion of the Minister subject to such conditions as the Minister may determine. Trustee Investment: — The issue is an investment authorized by the Trustee Act, 1908, and trustees may invest therein. Death Duty Stock : — Up to £400,000 of this issue will be reserved for individual persons who desire to invest in securities which will be available for payment of New Zealand Death Duties. Applications for this class of security, which will be in the form of Inscribed Stock only, must be specially marked. Such Inscribed Stock will not be transferable but may be exchanged by the holder for ordinary Inscribed Stock if so desired. Inscription of Stock : — The Stock will be inscribed in accordance with, and the issue will be subject to the provisions of, the New Zealand Inscribed Stock Act, 1917 (read in conjunction with the New Zealand Loans Act, 1908), and the regulations made thereunder, and the inscription-books of the issue will be kept at the Dominion Treasury, at Wellington, where all transfers of Stock will be made. Transfer-forms may be obtained at the Treasury offices at Auckland, Wellington, Christchurch, and Dunedin. Geo. W. Forbes, Acting Minister of Finance. The Treasury, Wellington, N.Z., 7th November, 1932. [Withdrawn from issue, 28th February, 1933.]
XVIII
8.—6.
Copy of Loan Prospectus for Over-counter Issue. 31-PER-CENT. STOCK AND BEARER DEBENTURES. With Currency to 15th November, 1941. Notice is hereby given that the sale of New Zealand Government Debentures and Stock is being resumed by way of " over counter " sales through the Post Office and branches of the Banks of issue—• the new securities to bear interest at 3§ per cent, and to be subject to the conditions specified in this circular. The moneys will be used to facilitate the capital works programme of the Government—e.g., Land Development and Settlement, Forestry, Public Works, and General Purposes —and, in pursuance of Government policy, only works of a reproductive character will be undertaken. A ready response on the part of investors will materially assist in providing continued employment for our citizens, in aiding the maintenance of stability, and generally in smoothing the way to a return of greater prosperity in the Dominion. The Government therefore with confidence issues this notification to all investors and emphasizes the point that the current issue will be reconsidered in keeping with the general trend of the internal money-market and may be withdrawn from sale at any time. The securities issued hereunder will be subject to the condition that the Minister of Finance shall, on giving three months' notice in the New Zealand Gazette, have the option of redemption at any time within three years prior to 15th November, 1941. Applications:— Applications, the amounts in respect of which will require to be lodged in full, will be received on and after the Ist July, 1933, and will not be accepted for less than £50 for Debentures and £50 for Stock. The debentures will be issued in denominations of £50, £100, £500, and £1,000, or such higher denominations as may be arranged, and will be payable to bearer. Stock will not be issued for any amount under £50, and any sum applied for in excess of £50 must be a multiple of £5. The attention of investors is invited to the advantages of Stock over Bearer Securities in that, firstly, the necessity for safe custody of a Security payable to bearer is obviated, and, secondly, directions may be given for payment of interest on Stock to a bank or savings-bank. Lodgments: — Forms of application may be obtained and lodgments made at any Postal Money-order Offices in New Zealand, or at any branch of the Banks of issue in the Dominion, or at the Offices of the Treasury at Auckland, Wellington, Christehurch, and Dunedin. Provisional receipts will be issued for all payments, and in the case of investments in Debentures these receipts will be exchangeable for Debentures payable to bearer as soon as the latter can be prepared. In the case of Stock Investments, inscription certificates will be posted to investors when the amounts are inscribed. Interest: — Interest on Debentures and Stock will be paid half-yearly, on the 15th May and 15th November, and is not free of income-tax. Interest will accrue from the date of lodgment, and the first payment of interest will be made on the half-yearly interest date next following the date of lodgment. Interest on Stock will be paid by dividend warrant, which will be transmitted by post or will be credited to a banking account in the Dominion, at the option of subscribers. Interest on Debentures will be paid on production of coupons, except the first payment, which will be by Treasury cheque. Both warrants and coupons will be payable, free of exchange, at the Treasury, Wellington, at any Postal Money-order Office in New Zealand, or branch of the Bank of New Zealand in the Dominion. Repayment at Maturity :— Repayment will be made at par on 15th November, 1941, at the Treasury, Wellington, or at any branch of the Bank of New Zealand in the Dominion. Trustee Investment:— Investment in these securities is authorized by the Trustee Act, 1908, and trustees may invest therein. Death Duty Stock Up to £100,000 will be reserved for individual persons who desire to invest in Stock which will be available for payment of New Zealand Death Duties. Applications for this class of security must be specially marked. Such Stock will not be transferable but may be exchanged by the holder for ordinary Stock if so desired. Inscription of Stock :— The Stock will be inscribed in accordance with, and subject to the provisions of, the New Zealand Loans Act, 1932, and the regulations made thereunder, and the inscription-books will be kept at the Dominion Treasury, at Wellington, where all transfers of Stock will be made. Transfer-forms may be obtained at the Treasury offices at Auckland, Wellington, Christchurch, and Dunedin. J. G. Coates, Minister of Finance. The Treasury, Wellington, N.Z., Ist July, 1933. [Withdrawm from issue, 21st April, 1934.]
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8.—6.
Copy of Prospectus of 1933 London Loan. NEW ZEALAND GOVERNMENT £3 10s. PER CENT. INSCRIBED STOCK, 1949-1954. (Interest payable Half-yearly at the Bank of England on the Ist February and the Ist August.) Issue of £5,000,000. Authorized to be raised under the New Zealand Loans Act, 1932. The proceeds of this issue will be used to repay the £5,000,000 New Zealand 5-per-cent. Bonds, 19321934, due for repayment in London on the 16th January, 1934. The present issue does not involve, therefore, any increase in the New Zealand Public Debt. A First Interest Payment of 10s. per £100 will be made on the Ist February, 1934. Price of Issue £97 Pee Cent. Payable as follows : — £ On Application .. .. .. .. .. 5 per cent. On Thursday, the 19th October, 1933 .. .. . . . . 12 On Thursday, the 30th November, 1933 .. . . . . . . 35 ~ On Wednesday, the 10th January, 1934 .. .. .. .. 45 ~ £97 The Government of New Zealand undertake to observe forthwith the conditions prescribed under the Colonial Stock Act, 1900, as notified in the London Gazette of the 14th December, 1900, in order that Trustees may invest in this Stock under the powers of the Trustee Act, 1925, unless expressly forbidden in the instrument creating the Trust. The Governor and Company of the Bank of England give notice that, on behalf of the Agents appointed for raising and managing Loans under the above Act, they are authorized to receive applications for £5,000,000 New Zealand Government £3 10s. per cent. Inscribed Stock, 1949-1954. If not previously redeemed, the Stock will be paid off at par at the Bank of England on the Ist February, 1954 ; but the New Zealand Government reserve to themselves the right to repay the Stock at par, in whole or in part, at any time on or after the Ist February, 1949, on three calendar months' notice having been given in the London Gazette and the Tinges of such intended redemption. New Zealand Government Stock issued and payable in London and the Interest thereon so payable, the property of persons not domiciled in New Zealand, are not, and will not be, subject to any taxes, duties, or levies by the Dominion. By Act 40 and 41 Vict. Ch. 59, the revenues of the Dominion of New Zealand alone will be liable in respect of this Stock and the dividends thereon and the Consolidated Fund of the United Kingdom and the Commissioners of His Majesty's Treasury will not be directly or indirectly liable or responsible for the, payment of the Stock or of the dividends thereon, or for any matter relating thereto. In view of the present economic position the programme for capital expenditure in the Dominion has been and is being severely restricted to the completion of essential undertakings and no new work involving a charge against loan-moneys is being authorized which doe's not conform to this basis. The transactions of the New Zealand Ordinary Revenue Account for the year ended 31st March, 1933, including £1,308,000 provided from revenue for the redemption of debt, resulted in a surplus of £40,000. In this connection it was necessary to transfer to revenue during the year the sum of £2,500,000 which was provided from surpluses accumulated since 1914. Every effort is being made to maintain a balanced Budget for the current financial year, and sub" stantial internal economies involving a reduction in interest charges and curtailment of non-essential services have already been effected. The Exports from New Zealand during the financial year ended the 31st March, 1933, amounted to £37,510,000 and the Imports to £25,059,000 —a favourable visible balance of trade of £12,451,000. Returns at present to hand in respect of the current financial year indicate that this favourable balance is being maintained. The gross Public Debt of the Dominion on the 31st March, 1933, was £282,620,000, involving a gross increase for the year 1932-1933 of £5,710,000. Against this gross increase, however, must be offset redemptions totalling £5,030,000, thus the net increase in debt for the year was only £680,000. New loan-money received during the year (and included in the gross increase) totalled £1,750,000, which has been applied to Public Works (principally Railways, Electric Power, Telephone and Telegraph Extensions and other productive works). Against the Public Debt of New Zealand must be set tangible assets valued on a conservative basis at approximately £305,000,000. Of these assets £265,000,000 are directly interest bearing and productive —e.g., Railways, Telephones, and Telegraphs, Hydro-electric Development, Advances to Settlers and Workers, Crown Lands, Sinking Funds, &c.—and the remaining £40,000,000 are indirectly productive, such as Roads, Public Buildings, &c.
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8.—6.
Redemptions of Debt amounting to £5,030,000 were carried out during the year ended 31st March, 1933, of which £2,000,000 represents long-term debt, the balance being applied to repayment of the Treasury Bills outstanding at the beginning of the financial year. These redemptions include portion of the War Debt, which has been reduced from £81,840,000 in 1921 to £66,740,000 on 31st March, 1933. This shows a total reduction in the War Debt of over £15,000,000 since 1921. Approximately £23,320,000 of the present outstanding War Debt is funded with the Imperial Government on a 6-per-cent. annuity basis, which provides for its extinction in about another twenty-seven years, with a proviso that the Debt may be redeemed at any time by the New Zealand Government. All Reparation moneys received from Germany have been applied in the reduction of War Debt. The Repayment of the Public Debt Act passed by the New Zealand Parliament in 1925 substituted for the long term Sinking Fund system a method whereby the Dominion's Debt reduction resources are now made available to purchase New Zealand Government securities on the open market for cancellation or to pay them off at maturity, thereby ensuring an actual reduction in the Public Debt annually. For this purpose there is issued annually out of the Consolidated Fund a sum equal to | per cent, of the Debt affected, and to this is added a sum equal to interest at 3J per cent, per annum on the Debt paid off under this scheme. By this means a portion of the savings in interest on the Debt paid off is applied to further repayments of Debt, so that the Debt reduction resources are increasing year by year. It is estimated that the present Debt will be liquidated over a period of about sixty years, while all future Loans will be liquidated within a similar period from the date of their inception. The Sinking Funds which accrued under previous legislation have been capitalized and will be held intact. The portion of the Debt, referred to above, which is funded with the Imperial Government, as well as certain other Loans which have their own separate Sinking Funds, such as State Advances, have been excluded from this scheme. Of the total redemptions made during the year ended 31st March, 1933, £1,000,000 was provided under this Debt Redemption Scheme. On the 31st March, 1933, approximately 42 per cent, of the total New Zealand Public Debt was domiciled in the Dominion, as against only 17 per cent, in 1914. The Books of the Stock will be kept at the Bank of England, where all assignments and transfers will be made. The Stock will be convertible, in due course, into Stock Certificates to Bearer of the denominations of £100, £500, and £1,000, with coupons attached and such Stock Certificates will be exchangeable for Stock, on payment of the usual fees. Transfers and Stock Certificates will be free of Stamp Duty. Interest will be payable half-yearly at the Bank of England on the Ist February and the Ist August. Dividend Warrants will be transmitted by post. The first interest payment of 10s. per £100 will be made on the Ist February, 1934. Applications, which must be accompanied by a despoit of £5 per cent., will be received at the Bank of England Loans Office, 5 and 6 Lombard Street, London E.C. 3. In case of partial allotment the balance of the amount paid as deposit will be applied towards the payment of the first instalment; any surplus remaining after making that payment will be refunded by cheque. Applications may be for the whole or any part of the issue in multiples of £100. No allotment will be made of a less amount than £100 of Stock. In case of default in the payment of any instalment by its proper date, the deposit and any instalment previously paid will be liable to forfeiture and the relative Allotment to cancellation. Scrip Certificates to Bearer with coupon attached for the interest payable Ist February, 1934, will be issued in exchange for the Allotment Letters. These Certificates, when fully paid, may be lodged for inscription ; or they may be retained to be exchanged, free of cost, for Stock Certificates to Bearer, as soon as the latter can be prepared, provided such exchange is effected not later than the 2nd Julv, 1934. • . A commission of ss. per £100 Stock will be paid to Bankers or Stockbrokers on Allotments made in respect of applications bearing their stamp. Prospectuses and Application Forms may be obtained at the Bank of England Loans Office, 5 and 6 Lombard Street, London, E.C. 3, or at any of the Branches of the Bank of England ; of Messrs. Mullens, Marshall, Steer, Lawford, and Co., 13 George Street, London, E.C. 4 ; at the Bank of New Zealand (the Bankers to the Government of New Zealand), 1 Queen Victoria Street, London, E.C. 4 ; of Messrs. J. and A. Scrimgeour, 3 Lothbury, London, E.C. 2 ; at any Stock Exchange in the United Kingdom ; or at the Office of the High Commissioner for New Zealand, 415 Strand, London, W.C. 2. The List of Applications will be opened and closed on Thursday, the sth October, 1933. Bank of England, London, 3rd October, 1933.
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8.—6.
COPY OF PROSPECTUS OF THE RESERVE BANK OF NEW ZEALAND. (To be established and become a body corporate pursuant to the Reserve Bank of New Zealand Act, 1933.) Capital, £500,000. In 100,000 shares of £5 each carrying a cumulative Dividend of 5 per cent, on paid-up capital. Offer for Public Subscription. The Minister of Finance, pursuant to section 6 of the Reserve Bank of New Zealand Act, 1933, hereby offers for subscription at par the whole of the above-mentioned 100,000 shares, subject to the conditions of this Prospectus. Application for and Allotment of Shares. Application for shares should be made upon the form accompanying this Prospectus and forwarded to the Secretary to the Treasury, Wellington, together with accompanying remittance plus exchange or evidence of lodgment of the required amount to the Public Account at any branch of the Bank of New Zealand or to the Post Olfice, as hereinafter provided. Payments in respect of shares applied for are to be made as follows : — £1 per share on application. £2 per share on or before Ist April, 1934. £2 per share on or before Ist June, 1934. Applications will be received for one share or any number of shares not exceeding 500, and the Minister reserves the right to allot shares pro rata or otherwise in such manner as he may in his discretion determine. In order that as many citizens as possible may have a direct interest in the Reserve Bank as a National Institution, allotment of the share capital will be distributed as widely as possible over the Dominion and to the greatest number of applicants. Applicants for shares must be British subjects who are ordinarily resident in New Zealand or who, having been so resident, may at the time of allotment be temporarily out of New Zealand for the purpose of their business or for other sufficient reason. Not more than 500 shares shall be allotted to any one person, whether in his own right or on behalf of any other person or persons. Shareholders' Liability. The liability of every shareholder shall be limited to the amount (if any) for the time being unpaid on the shares held by him. Objects of the Reserve Bank. The primary duty of the Reserve Bank shall be to exercise control, within the limits of the powers conferred on it by the Reserve Bank of New Zealand Act, 1933, over monetary circulation and credit in New Zealand to the end that the economic welfare of the Dominion may be promoted and maintained. The particular functions of the Bank are as set out in the Reserve Bank of New Zealand Act, 1933. Incorporation of Bank. The shareholders of the Reserve Bank shall become a body corporate with perpetual succession and a common seal on the Minister of Finance giving public notice in the Gazette and in such other manner as the Minister thinks fit, of the subscription of the full amount of the capital of the Bank, such notice to specify the date on which incorporation is to take effect. General Reserve Fund. An initial reserve fund amounting to £1,000,000 is provided by payment of that sum to the bank from State Funds, and the legislation provides for proportionate amounts of the profits to be allocated to the General Reserve Fund so long as the amount of that Fund is less than twice the paid-up capital of the Bank. Commencement of Business. It is expressly provided that the Bank shall be entitled to commence business on the date on which it becomes entitled to the right to issue bank-notes in New Zealand, such date to be fixed by Proclamation in that behalf. Trustee Investment. The shares of the Reserve Bank are available for the investment of trust funds unless the instrument creating the trust expressly forbids such investment, but no trustee shall be qualified to hold more than 500 shares, either for the same or different beneficiaries, nor shall any person hold more than 500 shares altogether, whether in his own right or on behalf of any other person or persons. Shares and Transfers. The shares of the Bank shall be registered and transferable in the books of the Bank. The Bank shall decline to accept — (1) Any transfer of shares except to a British subject, who is ordinarily resident in New Zealand, or who having been so resident is at the time of transfer temporarily out of New Zealand for the purpose of his business or for other sufficient reason ; and (2) Any transfer of shares that would increase a holding of any person beyond 500 shares. The Bank shall also be entitled without assigning any reason to decline to accept any person whomsoever as a transferee of any share. Except with the special consent of the Minister of Finance no transfer of shares allotted to any person will be recognized pending incorporation of the Bank.
XXII
B—6.
Management of the Reserve Bank. The management of the Reserve Bank shall be vested in a Board of Directors consisting of a Governor, a Deputy-Governor, and seven other members, and in addition thereto the Secretary to the Treasury shall by virtue of his office be a member of the Board, but shall not be entitled to vote at any meeting thereof. Three members of the Board of Directors shall from time to time be appointed by the Governor-General in Council to hold office as State Directors, the additional members of the Board of Directors (4) shall hold office as shareholders' Directors, and shall in the first place be appointed by the Governor-General in Council and hold office until retirement in rotation, pursuant to section 29 of the Reserve Bank of New Zealand Act, 1933. After retirement in accordance with the Statute, the shareholders' Directors shall be elected for a period of five years by the shareholders at a general meeting. Of the shareholders' Directors, two shall be persons who are or have been actively engaged in primary industry and two shall be persons who are or have been actively engaged in industrial or commercial pursuits. General Meetings and Voting Bights of Shareholders. Ordinary general meetings of shareholders shall be convened by the Board once in every year and shall be held not later than the 31st day of July in each year. Every shareholder of the Bank shall at any such meeting be entitled to one vote for every share of which he has been the registered proprietor for not less than six months immediately preceding the date of the meeting : Providing that no shareholder shall be entitled to more than five hundred votes. The right of voting at any general meeting may be transferred by a shareholder to any other shareholder as his proxy, provided, however, that no person shall be entitled at any time to exercise more than five hundred votes, whether in his own right or as proxy, or shall be competent to receive proxies purporting to authorize him to exercise more than five hundred votes in the aggregate, taking into account the number of votes to which he is entitled in respect of the shares held by him. Distribution of Profits. The financial year of the Bank shall end on the 31st day of March. After such provision as the Board thinks proper has been made for bad and doubtful debts, depreciation in assets, superannuation or retiring allowances for the staff, and all such other matters as are usually provided for by Banks, and after payment out of the net profits of a cumulative dividend of 5 per cent, per annum on the paid-up capital, the surplus for each financial year shall be applied in terms of paragraphs (a), (b), and (c) of section 36 of the Reserve Bank of New Zealand Act, 1933, which means that as long as the General Reserve Fund is not less than twice the paid-up capital (and that will be the position at the commencement) the whole of the remaining profits accrue to the State. Taxation. The Reserve Bank shall be exempt from public taxation (not including local rates) to the same extent as the Crown, but dividends received by any shareholder will be included in his assessable income for the purposes of the Land and Income Tax Act, 1923. Security of Capital. The safety of the investment of funds in the share capital of the Bank may be judged from the facts that not only is provision made for a General Reserve Fund at twice the amount of the paid-up capital, but the classes of business that may be conducted by the Bank are specified in section 13 of the Reserve Bank of New Zealand Act, 1933, and are of such a nature as will ensure ample security to the Bank in respect of its operations. These, it is particularly mentioned, include dealing in New Zealand Government securities and short-term negotiable paper bearing two or more good signatures. General. The Bank shall not be at any time dissolved except pursuant to an Act of Parliament passed in that behalf. Copies of the Annual Accounts and report shall be available for shareholders at the offices of the Bank. Two qualified accountants must be appointed as Auditors of the accounts of the Bank. Copies of this Prospectus with the form of application for shares may be obtained at any Postal Money-order Office, at any Branch of the Trading Banks throughout the Dominion, or from members of any stock exchange in New Zealand. Applications, together with the amount payable on application, may be lodged at any branch of the Bank of New Zealand in the Dominion or at any postal money-order office. Payment may be made in full on application or in instalments to be paid on or before the dates specified, and on allotment of the share capital any amount paid in excess of the full nominal value of the shares allotted will be refunded. Interest is not payable on application money or on allotments. In case of default in the payment of any instalment by its proper date, the deposit and any instalments previously paid will be liable to forfeiture, and the relative allotment to cancellation. A commission of J of one per cent, will be paid to Registered Sharebrokers and Banks on allotments made in respect of applications bearing their stamp, with a minimum of Is. in respect to each allotment. The list of applications will be closed on or before the 15th day of February, 1934, but the Minister reserves the right to close the list on such earlier date as he may prescribe by notification in the New Zealand Gazette or otherwise. J. G. Coates, Minister of Finance. The Treasury, Wellington, C. 1, New Zealand, Ist February, 1934.
By Authority : G. H. Loney, Government Printer, Wellington.—l 934.
XXIII
Permanent link to this item
https://paperspast.natlib.govt.nz/parliamentary/AJHR1934-I.2.1.3.9
Bibliographic details
FINANCIAL STATEMENT. (In Committee of Supply, 23rd August, 1934.) BY THE RIGHT HON, J. G. COATES, MINISTER OF FINANCE., Appendix to the Journals of the House of Representatives, 1934 Session I, B-06
Word Count
20,481FINANCIAL STATEMENT. (In Committee of Supply, 23rd August, 1934.) BY THE RIGHT HON, J. G. COATES, MINISTER OF FINANCE. Appendix to the Journals of the House of Representatives, 1934 Session I, B-06
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