8.—6

III

the new valuation, leaving for the decision of Parliament the question ai to how the balances are to be dealt with. This question is surrounded witl difficulties, owing to the land having been taken up in many cases at far more than its value for -cultivation, and to the very low rates ruling (until quite lately for agricultural produce during the last few years. The Committee will be glac to learn that more settlement has taken place upon the Crown lands of bond fidt settlers during the past year than during any year since 1881. There have been 55,188 acres of land taken up on the deferred-payment system by 35' selectors, 204,642 acres on perpetual lease by 765 selectors, and 70,98^ acres by 653 cash purchasers. This, I think, honourable members will agree is a highly satisfactory record, and shows that, notwithstanding the temporal-} emigration of some of our population—about which I will say a few words presently —our people have not loosened their real hold upon this fine colony, but, on the contrary, have taken a firmer grip by 1,773 of them becoming proprietors oi 330,817 acres more land than was held the year before. It is also evident that the land taken up is passing into the occupation of the people, and not falling into the hands of a few. The expenditure of the Land Fund having been £119,496, as I have stated, and the revenue £108,007, there was a deficiency of £11,489 on the year's transactions. FINANCIAL BESTJLTS OF THE YEAB 1888-89. I have said that the total ordinary revenue received was £4,055,034, and that the total ordinary expenditure amounted to ,£3,977,265; there was, therefore, a surplus for the year of £77,769. This surplus, of course, includes the primage duty, amounting to £46,132; and I have, in accordance with the declared intention of the Government, and the implied sanction of the House, paid off £50,000 of deficiency bills, being part of the bills for £128,600 issued last year to meet the balance of the deficiency on the 31st March, 1888, which was not provided for by the debentures issued in March, 1888. The Committee will, I cam sure, think it a not unsatisfactory result of the efforts to live within our means made last session, and the session before, that the colony has not only raised within this year enough revenue to meet the whole of the necessary ordinary expenditure, including in that a sum of at least £52,000 for purposes which have hitherto been invariably provided for from loan, but has also been able to pay off £50,000 of debt, and still have a small surplus in hand ; and this satisfaction will not, I think, be diminished when honourable members come to critically examine the tables attached to this Statement, including the statement of liabilities and also the Appropriation Account. The statement of liabilities shows that the total amount on the 31st March last, including those of the Land Fund Account, was £152,551; while on the 31st March, 1888, the amount was £144,956 —a difference of about £7,600. But, if we restrict the comparison to the ordinary revenue account, we find that the liabilities on the 31st March last exceeded those of the previous year by £16,154. The liabilities of 1887-88 were, however, exceptionally low; they were far below the average of previous years —indeed, they were no less than £35,700 lower than the liabilities of any year since the present system was brought into operation in 1880-81. The comparison should, therefore, not be made with the previous year, 1887-88, but with the average since 1880-81. That average was £166,600, being about £24,000 more than the amount of the liabilities on the 31st March last. Then, again, if we take the total of the thirteen classes of the annual appropriations we find that the liabilities on the 31st March last were nearly £1,000 less than on the 31st March, 1888, and less by about £40,600 than the average liabilities of the last eight years. I have said that there is a small deficiency of £11,489 in the Land Fund Account, but this, as I have already pointed out, is more than accounted for by the non-collection of rents, and will certainly be made good during the current year. ~, Such, then, are the results of the year, and I venture to think they are results with which the colony may well be satisfied, especially when it is remembered that all this has been accomplished with a large decrease in the public-works expenditure (excluding charges and expenses of raising loans), which has been

; I Greatly 3 increased settlement upon 5 Crown lands.

t I Land passing . into occupation of the people.

Land Fund expenditure exceeded revenue by £11,489.

Financial results 1888-89. Table.No. 2. 1 Ordinary lle- [ venue Account, surplus of - 1 £77,709, including £46,132 primage duty. Have applied £50,000 towards deficit at 31st March, 1888.

Table No. 3. Liabilities, including those of Land Fund, £152,551;

Liabilities of Ordinary Revenue Account, £24,000 under average since 1880-81.

Deficiency of Land Fund due to non-collection of rents.

Eesults of the year satisfactory, in view of large decrease in public-works expenditure.