8.-la.

1885. NEW ZEALAND.

FINANCIAL STATEMENT (SUPPLEMENTARY). In Committee of Supply, Wednesday, 12th August, 1885. BY THE COLONIAL TREASURER, THE HONOURABLE SIR J. VOGEL.

Mb. Hamlin, —- It will be remembered that the proposals of the Budget resulted in an anticipated surplus of ,£32,158. This result was arrived at after provision was made for paying off £50,000 of the deficit of 1883-84, .£6,500 on account of the first year's classification of the Civil Service, and £75,000 for subsidies to local bodies. The House declined to make the changes in the tariff which we recommended, which would have left us an addition to the Customs revenue of about £70,000. Certain alterations which were made in the Bill providing for an amendment of the Succession Duties will involve a reduction of the stamp revenue of about £30,000. Ido not feel it safe also to rely on quite so much revenue from the railways as was anticipated. They will realize more if the price of grain rise, but, as it is, I think it safer to be prepared for a less amount of net revenue than was anticipated. The loss from this source I set down at £47,000, which means; less receipts to the extent of £66,000, and less expenditure to the sum of £19,000. We have, therefore, the Budget disturbed to the extent of — Customs revenue .... .... .... .... £70,000 Stamps .... .... .... .... .... 30,000 Eailways (net, including reduction of expenditure and receipts) .... .... .... .... 47,000 £147,000 The Supplementary Estimates will not, I anticipate, exceed £12,000, so that I shall have to provide in all, from various sources, £159,000 to make up the amount. The surplus to which I have previously referred at once provides £32,000, and it has already been announced that the Government intend not to provide for the deficit of 1883-84 this year. I shall ask that the deficiency bills already authorized for this deficit be extended until the 30th June, 1887. It has also been stated that we propose to charge to the Public Works Fund £25,000 on account of external defence. The statements which have been made as to the falling-off of revenue are grossly inaccurate. For example, I have seen it stated that for the three items, of Customs, Eailways, and Stamps the revenue actually collected for the four months ending July 31st is less by £70,000 than the estimated revenue. The fact, however, is, that on these items the loss in the estimated amount for the four months is only £21,000. Some part of the receipts, however, include Customs revenue paid in anticipation of increased duties. Viewing all the conditions, I have thought it prudent to provide for the diminished revenues which I have already stated, although these reductions are notably larger than on the receipts of the first four months.