4

B.—No. 1a

FINANCIAL STATEMENT.

is to examine critically her capacity. It consists in the number Class VIII. —Miscellaneous ... 39,403 6 8 and variety of the places which are sources of supply to her revenues. New Zealand in fact does not depend on one or two £744,178 7 6 ports only. The consequence is that you are enabled to strike With respect to this proposed expenditure, I remark that, an average, and so calculate with a confidence which would be notwithstanding an increase over the sum as estimated last rash elsewhere. I draw the attention of the Committee to a year, of nearly £40,000, under the head " Permanent Charges," very interesting return (No. I.) which I hold in my hand, it will still be found that the total proposed expenditure for showing the growth of the Customs Revenue of New Zealand this year only exceeds that proposed for last year by the sum for the last ten years, uninterrupted by a single check. The of £6,000. progress is as follows, viz : Hb&B result has been attained mainly by removing certain 1857-8 £138,998 1862-3 ... £488,522 items out of the ordinary estimates, and providing for them as 1858-9 £100,830 1863-4 £617,002 other services of an extraordinary and emergent character 1859-60 £178 117 1864-5 £643,297 may, consistently with sound principles of finance, be provided 1860-1 £204 612 1865-6 £796,227 f°r- lam particularly referring to the item " Defence." Last 1861-2 £339,393 1866-7 £864,668 7ear I estimated the amount for this service to be borne on I believe the Committee may feel a confidence in my figures the ordinary estimates at £70,000. The sum is placed down as based on such progressive returns which they would not feel on the ordinary estimates of this year at only £28,000, and if they regarded some isolated fact only, as for instance that embraces the Militia and Volunteer services only. there was a slight decrease in the Customs Revenue for the last Government has decided, after a very careful consideration, quarter. to **^B this step, which means much more than a mere transfer In further confirmation of the elasticity of the resources of from one set of estimates to another. But whilst the Governthe Colony, I refer to returns of imports and exports (Nos. ment has, as I believe the Committee will agree, wisely 11. and III.) which will be interesting not only to the Com- determined to cease to place the Defence service on the mittee but outside the Colony; from which it appears that estimates as an ordinary department of Government, it is my our export of gold for the last year was £2,605,000 as against duty to doclare > on t]ie part of the Government, that whenever £2,858,000 of the preceding year, and that the grand aggregate the occasion may arise, and to the very fullest extent such of the export of gold from New Zealand, from the commencement occasion may require, they are determined to put in requisition of the gold discoveries to the present date, has now reached the entire resources they can command in order to maintain the upwards of thirteen millions sterling. Peaec of the countr? iv tlle event of its hciaS disturbed. I remark in passing that I anticipate that there will be certain The Government simply judge it to be for the best interests incidental receipts arising from the sale of sundry stores &c.; of the Colony nofc to maintain a P eace establishment of also from instalments falling due in respect of sales of con- Defence a3 olle of the P™nanent institutions of the country, fiscated land effected prior to 30th June, 1867, and of sale of Whllst' however, it must be adnutted that this is a very large certain confiscated lands in the Province of Taranaki. But and lmP° rti™t step to take, and whilst it is not to be imagined these receipts (which are not likely to be large) will not more that the Government is prepared to make any preposterous then suffice to provide for certain charges of a special character, Proposal which shall aim at defining and limiting as between including surveys, &c. I regard them as a special fund, and the different parts of the Colony that which by its very nature consequently have not included them in the estimate of the mu9t be as preposterous, indeed, as it would be for , a canny bachelor to prescribe beforehand the limits of milliners' "\ OiiT t> revenue* " The question now presents itself, how, within such limits of bills; tlle cadem willbe and graciously accepted ~ . , . „. ~ . .. . m token of acquiescence, but when the gift has been used up ordinary income, we can best propose efficiently to provide for '• . f. r> ~ ~, . . ITI ■-, ■ » t>t rr i to -itt the full weight of marital responsibility recurs, and it is flic Colonial and Provincial services ot JNew Zealand r We ~ -, , „ ~ ~ , „ . . „'. ~,.,, . , discovered when too late that the fascination of the moment have finished with the routine statements — the data are , , , ... ~,.,,,, . was the only substantial result obtained by the absurd bargain, ascertained —and we come iaco to lace with the problem ot the _ ,-,,, ~^, . , -~,? _ 1 say that, although the Government is not prepared to hold out day. It is close work. Can we make more room r Can the ... . „ , , .. ~ t . , ,*,,.,«-., i ~ . „., illusory promises of limitation, it ,is a satisfaction to be able to data bo altered? In other words, can the taxation of the . „ . . - _ . ~ , ~ _ . . . _ _ . assure the Committee that the Defence expenditure has now country be increased? The opinion of the Government is, . . . , , .n_-L_# * ij , , . ~ ■.•.., become a decreasing series, and need not, therefore, be regarded that it cannot, and that there is no use looking for relief m that ~, ~ , . . „,. . ...... , , ~ , X. ~ , , , with the same apprehension as formerly. This assurance is direction in order to make both ends meet. On the other hand , , f . _ . * . ~, „ , i, >i j! on. hi i- borne out by the following statement of expenditure for the taxpayer puts the opposite question, ' Cannot the taxation ~ ~,-,. /.,,., -, , . , -,-,„,, T • Colonial Deienco (including advances made during the years of the country be reduced? In reply to the last question, ,„„_,. ~ ,-,. -, ~«,._ X _ . , _ J , _ ,*■ ~ . . ' 1866-7, but excluding advances accounted for) for the financial I am not prepared to say that no alternative nuance might „ „„•„« ,„„„». , , . , . ,-... .*ATT ....... . years from 1858-9 to 1806-7, both inclusive :— be devised in that direction, isut under present circumstances, speaking as a Government, with whom must always rest the r,..., . , , ~ .... . Expenditure in year 1858-9 ... 4,415 15 1 responsibility of endeavouring to the utmost practicable extent l ■ J . -tj. j •*. • - _m • i> i n ,-, ~ », 1859-60 ... 27,076 15 6 to provide tor and maintain in efficient working order all the existing institutions of the State, I have to inform the Committee " " 186°-1 •■• 62,634 10 0 that no reduction in taxation will be proposed by the Govern- . ~. J „ „ 1862-3 ... 203,013 12 8 ment this session. 1863-4 ... 853,146 2 3 With this observation, I pass on to state the proposed expen- 1864-5 886 259 0 11 diture for the year 1867-8, as follows, viz.: — 1805-6 473 348 18 4 £ s. d. „ „ 1866-7 ... 327,180 9 1 Civil List ... ... ... ... 27,500 0 0 That is to say, the Defence expenditure was not much more Permanent Charges 305,818 5 5 than one-third of what it was in the two years 1863-4 and Class I. — Public Domains and 1864-5, when it reached its maximum. Buildings 4,376 4 0 It is also satisfactory to note that the ratio of "Native Class ll.—Public Departments ... 45,025 10 4 Expenditure" is decreasing, as is shown by the following Class lll.—Law and Justice ... 69,892 4 0 statement of expenditure for Native purposes for the financial Class IV.—Postal 155,241 4 0 years from 1858-9 to 1866-7, both inclusive :— Class V.—Customs 44,810 7 6 £ s d Class Vl.—Native 24,058 17 6 Expenditure in year 1858-9 ... 11,109 15 4 Class Vll.—Militia and Volunteers 28,052 8 1 „ „ 1859-60 ... 17,140 8 1