8.—6

II

In my last Budget I strongly advised that we should " keep the public-works expenditure within reasonable limits, practise the strictest economy, prove ourselves self-contained, and seek as little money outside the colony as possible." So far as could reasonably be done, the course indicated has been followed. There has been a gradual reduction in the public-works expenditure, and a further reduction is proposed. In the year 1892, when I was Minister for Public Works, the total expenditure was ,£391,612 ; last year the total expenditure was .£1,620,377, the expenditure on railway-construction (including additions to open lines) alone being ,£828,703, or more than double the total for the year 1892, whilst our expenditure on roads last year (£361,044) was greater than the total expenditure on public works for the year 1890-91, which was £335,151. With the back blocks unroaded, the main trunk lines of railway incomplete, and the necessity for developing our mineral wealth, industries, and general resources, it will be impossible to bring our public-works expenditure down to what it was thirteen years ago. There should, however, be a reduction whenever possible, and to that end members should lend themselves, and not continue a course many have followed —namely, rail at the increase of the public debt in one breath and in the next freely and scathingly denounce the Government for not providing sufficient moneys for roads, bridges, and public buildings in their districts. The millennium of a Colonial Treasurer will arrive when members prove their patriotism and consistency by refraining from demanding a large public expenditure, and by allowing the completion of railways, the construction of roads, the erection of post-offices and buildings to extend over a longer period, and as far as possible to have the cost of the public works defrayed out of the surplus from the Consolidated Fund. I propose without further delay to make a few explanatory remarks upon the figures producing the balance I have mentioned as closing the transactions of last year, and hope to place the same before members in such a concise, lucid, and simple way that all may grasp and understand. EECEIPTS OF 1903-4. The revenue for the year exceeded seven millions—considerably in excess of any previous record. The actual amount was £7,021,385, or £634,776 more than the preceding year, and £553,385 over the estimate. Receipts outside of revenue were £108,730, including £60,600 as the proceeds of sinking-fund debentures. The increases of the several heads of revenue over the sums received the preceding year established two new records—namely, in that of the Eailway revenue, which for the first time exceeded two millions, and in the Stamp revenue, which reached over one million. The principal increases were in the Customs, £265,682; the Stamps, £100,345; Land and Income Tax, £59,617; and Railways, £185,442. All the other heads of revenue exceeded the previous year's receipts, except in the case of the Territorial Revenue, which fell off to the amount of £4,435. Comparing the actual with the estimated revenue, increases took place under all heads. The Customs was exceeded by £201,325, Railways by £167,992, Stamps by £96,284, Land - tax and Income - tax by £46,362, Territorial by £7,842, and all other heads by £33,578, leaving out shillings and pence. Of the miscellaneous receipts outside the revenue proper, £47,741 was recovered in connection with expenditure which had been charged in the accounts of previous year against the cost of the South Africa Contingents. EXPENDITDEE OF 1903-4. The expenditure for the year under permanent charges and votes reached £6,434,281, or £220,263 in excess of the previous year, but £156,793 less than the estimated requirements. Amongst the permanent charges, interest and sinking fund shows an increase of £57,000 over the previous year, arising from the payment of interest on new loans issued,