B.—No. 1a

8

FINANCIAL STATEMENT.

time had arrived when it became the duty of the Government to the House that these debts should disappear together with I o review the machinery by which the public moneys are the Act out of which they have arisen. We propose to abandon managed, and, if possible, to consolidate all the law upon this this claim altogether on the part of the Q-eneral G-overnment. great subject into one comprehensive, simple, and intelligible If, however, we were simply to pass a sponge over the entry, statute. That is the purpose of the Public Revenues Bill, and justice would not be done as between Provinco and Province, which it will be my duty to propose, and which will be placed The Provinces have been all over paid, but not all in the samo in your hands without delay. proportions. Simply to cancel the debt, therefore, would bo Subsequent opportunities will present themselves for ex- to take from one Province in order to give to another. We plaining in detail the provisions of this measure. The Bill propose, therefore, to abandon this claim on the part of the may be considered as having two distinct parts. I anticipate Government, but to require some Provinces to pay such sums that all that part which is principally of a technical a s shall adjust the amount fairly between all. The General character will meet with the unanimous approval of the House, as Government will stand in the position of a liquidator, and will lam certain that its results will that of the country. The other pay to some Provinces the whole of the amounts which it part, which comprises what may bo called the new policy receives from others, and we shall ask that a short Bill shall be introduced by the measure, will be found, and is wholly contained, passed, stating specifically the sums to be received and paid in three clauses under the head of " Revenues payable to by each Province in final liquidation of the account. There Provinces." is one exception to this. It is the case of Marlborough, which I need hardly say, after the elaborate explanation I have I think requires the special consideration of the Committee, already given the Committee, that we propose to repeal the Under the operation of the Surplus Revenues Act, Marlborough Surplus Revenues Act. No one, lam sure, will contend for the stands indebted to the General Government on the whole maintenance of a law, the operation of winch has to be sua- account from 1858 to 1867. That is to say, her share of the ponded whenever it acts differently from what was supposed, surplus revenues is some four or five thousand pounds less Siidi a conduct of financial affairs must end in the worst than nothing. She has been paid about £7,000 as surplus embarrassment. We, therefore, propose to replace the existing revenue, and in the proposed adjustment of the account law by a new arrangement. We propose to retain one-half of Marlborough would have to refund about £12,000 to other the consolidated fund permanently as the revenue of the Provinces. Now it is impossible that Marlborough can pay General Government, and to settle one-half, with certain deduc- this money. The sum, therefore, for distribution will be t ions, permanently on the Provinces. Those deductions are : — deficient by that amount. The fairest arrangement seems to be first, for the cost of services voted by the House, but provincially that it should be divided equally between Wellington and Nelson, charged; and, secondly, the annual charges to which the General because it is owing to the fact that the customs duties on goods Government will become liable on account of the purchase or consumed in Marlborough are to a certain extent paid in-Nelson exchange of provincial debentures. and Wellington, that the account with Marlborough assumes a We propose also to make SO entire change in the manner character so different from that of all other Provinces. We of computing the sums payable to the Provinces, and to make have, in fact, thrown upon Marlborough the same proportional the account relate solely to past cash transactions. For example, charges as upon other Provinces; whilst she is accidentally or Bay in the month of February, as soon as the accounts arrive f rO m other causes deprived of the revenues by which those from various parts of the Colony, the Treasurer will make up charges are to be met; whilst the revenues are infringed on by ;n i account of the half of the actual sums paid into the con- two of her neighbours, the expenditure borne on those revenues soli dated funds in each Province during the month of January, ; s voted by the House;' that is, the pro rata share of the and of the actual sums expended on account of general services general charges, and the cost of the general services provincially provincinlly charged during the same mouth, and the difference charged, have been larger than the total amount of the will be the sum belonging to_ the Provinces for the month of revenues received. The total sum is not large. Both January. If there is anything due from the Provinces on Wellington and Nelson, which, if matters remain as they are, account of interest for its debentures bought and charged under wou ia have to refund considerable sums to the General the Consolidation Act, that will be deducted also, each month, Government, will, even after the special arrangement as regards at the rate of one-twelfth of the annual charge Now this Marlborough, have to receive instead of to pay money. Theirs account will absolutely close all transactions between the General will not, therefore, be a case of hardship. The total result of the Government and the Provinces up to date. No money will operation will be as follows: — ever be paid in advance, no balance left unpaid. The account £ depending on past cash transactions, instead of on future contin- Auckland wfll have to receive 25 380 gencics, will be absolutely closed month by month, and I Wellington 4 815 venture to say that this result will be equally acceptable to Nelson 615 the General Government, to the Provinces, and to the public ; — Canterbury 618 to the General Government, whose finance will no longer be n!»lructed, and its accounts mystified, by engagements difficult £31428 to be ascertained and never settled; to the Provinces, who „ . - , , . . . Un the other hand, will no longer be tempted to extravaganco by the anticipation of "hearing something to its advantage" in the annual balance _, ...... b ° ° . Taranaki will have to pay 376 sheet, or irritated by the prospect of having to refund sums _ ~ „ . ....,, . . -.. - .^ . liawkes ±>ay „ ... ... ... dul which it had overdrawn in enforced ignorance ot its real _ ° Otago „ ... ... . . 25,140 position; and to the public, who may possibly begin to Southland 5 fill understand something of the manner in which its money is disposed of, which any one but a most accomplished accountant Thu9 <*" total slmla received and paid over in liquidation of must despair of doing under our present system. this d°ht of £183,688 9s. 6d., will be found only to amount to I have said that the Provinces are at present indebted to ' " ' the General Government in a sum which somewhat exceeds Altogether, Mr. Carleton, I think this may be considered an £183,000. At a time when an entirely new arrangement is unusually pretty transaction, for every party to it comes out being introduced, and a new system of accounts inaugurated, satisfied. The General Government assumes the dignified it would be extremely embarrassing if the simplicity of the new attitudo of Paterfamilias hushing the clamour of his nine system were destroyed, and its working spoiled by the retention children, who were expecting to be punished, by a judicious on our books of engagements which cannot fail to be a subject distribution of sweetmeats, which he himself disdains to taste. of irritation between the General Government and the Pro- Each of the nine Provinces must needs be pleased with the vinces. Wo hare, therefore, thought it wise to propose sharo allotted to it, when it regards the following statement