8.-6

III

Taking the increased expenditure of last year under the annual appropriations as compared with similar expenditure made during the preceding year (1902-3), Departments such as the Postal and Telegraph, Education, Working Eailways, and the Department of Lands and Survey show considerable increases, totalling altogether £187,945. As the country becomes more closely settled, the requirements of the colonists in the way of providing conveniences must be attended to and met, and this means increased expenditure for the Department of the Postmaster-Gi-eneral and the Working Eailways. It must, however, be remembered that the Eailways contributed additional revenue of over £185,000 against increased expenditure of £97,800. Again, as our population increases so must our expenditure increase to keep pace with the requirements of free education, and assistance towards elevating the intellectual status of our rising generation, and £20,000 extra had to be provided for this. The efforts of my Government in the direction of placing the people upon the Crown lands, and by cutting up large estates for closer settlement, necessitates largely increased expenditure upon surveys, and in consequence the cost of the Lands and Survey Department exceeded that of the previous year by some £31,000; but I feel satisfied honourable members and the country generally will not complain of such increased expenditure devoted to such a useful and remunerative purpose. Lessened expenditure took place in the Departments of the Colonial Secretary, the Old-age Pensions, the Minister of Justice, and the Minister of Defence. Details of the savings and excesses on votes will be found in the Appropriation Account, which has already been placed before you. During the year 1902-3 we transferred the sum of £200,000 as a contribution to the Public Works Fund; this year, finding I had such a handsome surplus, I was very pleased to be able to pay over no less than £350,000 to the Public Works Fund to supplement its ways and means. RESULTS, 1903-4. It now only remains to summarise the financial results of the past year's working, so far as the Consolidated Eevenue Account is concerned. The revenue for the year, including outside receipts, amounted to £7,130,116 10s. 4d., and the expenditure, including the contributions to the Public Works Fund, to £6,784,281 ss. 7d. This left a surplus of £345,835 4s. 9d., to which we add the balance brought forward to commence the year with, amounting to £303,905 12s. 6d.; and adding these last-named sums together we reach the total of £649,740 17s. 3d., representing the balance to carry forward for the current year's operations. lam satisfied that honourable members and the country are pleased with this result. PUBLIC WOEKS FUND. The receipts into the Public Works Fund daring the past year have been as follows: On Loan Account, £1,323,950 under the Acts of 1902 and 1903, and £465,000 to provide for a like amount of debentures which became due in April, 1903. A further sum of £150,000 of debentures were created in respect of the Midland Eailway Petitions Settlement Acts, 1902-3, and these securities were handed over to the Eeceiver of the Midland Eailway bondholders in London. Some miscellaneous receipts amounting to £1,664 6s. Id. were also credited, and £350,000 was received from the Consolidated Fund. On the other side, the expenditure amounted to £1,620,377 13s. fei addition to this amount the maturing debentures, amounting to £465,000, were paid off, and payment of £150,000 was made to the Midland Eailway bondholders, in accordance with the directions of the Legislature embodied in the Midland Eailway Petitions Settlement Aci; Amendment Act of last session. The total amount charged against the fund was accordingly £2,235,377 13s.