PARLIAMENT.

Dominion, Volume 1, Issue 244, 8 July 1908, Page 9

PARLIAMENT.

\ . THE? FINANCIAL statement. ' ■ aolf< *'• X -■ i v. ; . .9711. . credit balance,, 0W JE!;2so,oaq TO BE ISRROWED. NEW LANp SETTLEMENT SCHEME. •y fjjy.- ~- ——rrt,i>3;- ! ': '.. ... ' MORE MONEY FOR«WDV'ANGE -TO-". |? ■ The Hon.-Sir •■ J. G. Ward), an-Ms Financflrf|fetatoment, which h'fi read to; trfo ;Hpus6,^evening,^v;said.:-7; ;,TBe presentatloii' of' my Tinancial. Statement : .this,-year.is a.-vesjj pleasant.duty,;and' I . have again io v congratulate "the- committee and the' on the z ßontinued prosperity which : we,aro enjoyirigv : jjj'JJhe progress which, has characterised^'; ; th'a .Dominion sinco i the: .'Libgrai party,-^ame;:'into x pbiY.er 1891 >till; .'continues.: .. Is; took;i>)j'j. early, opportunity j , ; after.;the ..31st jto make- the .re.-i suits' of tho 'yeafV'knowliCtQf the country, • ■ it'-.'^asva^gf'eaf I? s®rce^®;satisfa;ction. to'be .to^' fl annouiice B tiiit '.wel had, ajEw'r transferring ££do,obo..ki;'; tho .Public Works Fund, closed the year's accounts with a sub-: stantial ■ credit| of {£767,849.^. Tho ■ revenue- !for the y'cai\ as you are . already aware, reached" the""sum of nine millions— , a result that tonst AS regarded as highly satisfactory,and emphatically - demonstrating the progres? of -tho Public, Accounts.for year;,hayaj?en,^published," honourable Tpiemhers. have' jrio doubt inade with, tW fijpiyres. •-It .'is;s.fflU^: ! • to ; 'fore deeding .'year.'.J: ad-alliedtherewith',^n^-,'.ihoi^OTi,,X*',TriU ,not weary with details which wiii be found m deplAiientaf reports.' 1. , ' ■ Rgy-ENU^r!' ~ ::Th"e. revenue for! t^jjiaiifjugf.closed reach-., ed.'the"record .suijfpf £9Jg.5946, "exceeding .-"plas.s of revenue ; has ebnJ^ib'uted; ;.^ : ..fhiS' : ;spJen9ja'^esult:; Custom's sTbowi;:an,, increase^uQf r^®2,520; i, railways,. ..:£|*13,999; and ■:stamps',-n^Ss,2o7. -1 1 Dealing, ,;with ,tKe'.revenue. -the.results, show an, / In .franiing. ' l las4;year.!s- ostiinate%j,-}t -wasi'conside'red :pru-' Vdenttii iyiew.pftigQSODbe.s.siqnsiTvliich it Aya's' 'proposod ' to", 'makejafim: for.:,oth6r ,reasons, the, tim«^o^isc6tnt; the.:- .previous fgVeniis'ljy n'ea.rly.!£2oo,ooo, ' .and, : . thaugh that': my estim'ato , was a' very wonderful.'reso'urcos '.ofour; .country^od^po^results' beyond : my ■■■ Qli- th^in'-: 'creases' .less a' sam th'an : £303,565, v wljile, 'Railway ivas- responsibld... for an' 'inc^easo^ 1 ' £21:5,395,;;: and 'Stamps. -£210,934/ . ■ ■ 1 >. if 1 JXPEtyDIiTURE. s7 , Tto^g'lwi®|l6&^ l , si3e''of ■'I 1 find'.'th e f windikirtJ fl for theiyearja'mounted "'to':^i2l3^yi'j^itußi!<as : «Mo#5 1 .';•■ _'<??■ I'M tin F £ .V3,128,^62§,' ; 5,085,343 r 1 Dr mwe »tb'An"ithe^-preceding 'year., vpf>thiSr4Aduntifi£9ojso2.\ has:.T)een'; spent^'-un- :■ 'Apt?, -and'£34B:s37 ; •for;'dej)artment)sl,'/appropriations.. > .;It will ; .be •■recognised thatr whepa <thii .exfeess "of- revenue'' -pehditore^ wasVtb'be : expect?d, . and; ffie^abn(OTnal:gh)^th' ofithe 'public/ biisihcs3 y at igncff its «iuso • aid''itsvjustifica-. .rtiwV.' < obarges, I;/find 3 interest is res^onsible\for.r£l6i327; :,piyment; to/4bca3r ,%j*6 /eice '. SupeiitimuatiomlijSoard; s Of' the in departmental :appr<ip,riatioiis, : the Working :Railwaysrcost;-us an-aaditi6nal- : ,£ll3,77lslibnti to, coyarvthis they, ix-■ cess of tho 1 : previous" year. "Postal-facilities; required an- . additiojf©'' . > £89,867;/IVEdiicati6n : ; ;S^ei|);j{!B6,434 > are angvgraVJe'" for.' -, The.,other c'nief j ' wero -': Majfine , ;.and . Harbouis, £12,799; ■ >, •" Indus l ! tnos ahd .Commerce- 1£10,532,! a' saving ~of . £20,955,' .. ' v 'V ~ : . •., :.: .. *'I ihfVje. already.nwn'ljjpncd-.tnat I ■,\vas,.able 'tp to; public.^',^works.lthe.'.-,sum,./,of '. THis'is dinount'that't'has. -"purpose., in any ■'one: • trans l -. of public, ; works amount' which 'fiwrpw : ' had' Jvo"' iad;. snch' : 2 reveriup. "'; In wb ( ,JJ,ot' l .b'een' able to trans-' ''.fer-. thia ; large iSum'lroin revenue. w'o ,would 'have'.bad'to'^bbfrow^^^OjiSOjOOO: more'than: we ha'ye dono.'or to Mye reduccd.bjir public-; Byj that, : „The' 'value 'of.tEis'course' Vill 'bo, r«;ogniscd.'wh'en' , '"I ■. say. iiiterest;it' 3 , p«; .'cent: for,dhel "year oh ,so .that • i,t'' jpjjjf. t said 'jro; ;are'. iiowi I . ■ ftivingt annum^jiK>. RESULTS OF THE YEAR. : s ' '■ '.y- Sue . "ii.--". ' ■ . . The : ,resul{a.;Of transactions for • the 1 /ear . may be summarised, thus' Balance brought 'for*'- -■' •-. ' : - ifard,, April -1, ,l?j)-7 v., £717,825 '...Recepts',during.-year—. . ' I ; ."L ; hvi'"-'-- 1 "■'Othii: 1 receipts s ;'' . '8,043 . ' " ' y. nc- ; .:•• j;rio T - • ■at*: ■ " ;i r M : : Effi^3itjfim?43nng i ,yeart i ;f>,* •; 8,213,965;; * r".. a _ ",: .'Kxcejs'' or'-i'ec'eititV, v. ';i''/ ; -- 'mpenditufe'". "iß*Sb,tl24 ' 7 ',vJ. ,t v,'n43 .' 'V ■" •;iDotal ) . .1!. : 1 ;5G7,849 . Transferi;itio' ; ]isublic ;"Works>V-. ■ ;800,000. :, \ •dMarcß 31, '.1908 ..v.;£767,849 V -TREASURY BILLS. ; ; ; ItjisVvery <gjatii3ing.'to:ine to,'lje able to inform honourablejnembers that I' was able: . to _seo -my :-wajt ..to-.further..reduce 'suifybills'," (, !wlficKistb(id 'for''so n/avty - years at £700;000;'^y• ttee sum df £160,000. This,: >. with-the'£lsJ)jOOOjj|aid'off last year,, making leaving £400j0Q0 out- .-,. stariaing;.:pn > ., ■ ;f ..... :

s . FUNq. :- > j!Ebis:Scobuht :, : £359,'400,t0 start ..tlw:!year -irAh.::. i.camp to iron) - loan-moneys; £13,514 "from pre-;.;miunis-:on sale 'ofndebentures; £800;000 from Fiindr, : and 'froffl other receipts £1640j making thn total .available for ways i and ; means, '£2,038,154. ,>:Tho:expenditure out. of these moneysamounted)' to: £1,886,591, leaving a^, £152;0G3. to the.- credit of!- the account. a - } I, trouldj, 'vout' ..tnat 'the 'charge's. ;and ' mo'ney_s^amounte^[ to ;• £0027-, ' and.' that' :the' whole, of tho charges and' bul. gave us. a . credit glance beyond,,that of ,£8487. : r CON V E ffSION ACCOUNT. ' i ■ Tho, dealings iin the" Conversion Account, though ri(it so latge.-as in the previous year, ' wero still very important. , For tho con- , version debentures. £340,676". of ,3J-per- •' ccnt. : stock'.. was ( jsSued, arid £332,700 debentures ! worfv convolved. ; As all these debenture's •'■ wttfc;-carrJlng "'a';- 4-per-cent. rate a : considerate savirfg ■of interest was effected thereby. '<>'££288,000 3J-per-cent. . stock was •inscribed for tho Redemption of debentures, ■ iand £5000 i&sued ;l for expenses.' •.; ■ LOANS TO LOCAL BODIES ACCOUNT. r: . The balance of- tho. Loans to VLocal Bodicaii AcCaunt on March • 31',- 1007, . was £397.:jv '(P.cbejjtures _ for £185,000 were ■created and issued during the year, and refunds of unexpended balances of .grants amoun H ne to £818. wore received. Pay- " I ' '■

ments on account of loans made during tho past - year to local bodies amounted to £136,420, and towards , opening up blockß of land for. settlement, £38,524, leaving at tho-'end of. tho year a-balance of £11,271 to the,crodit of tho account. - ' PUBLIC DEBT. ; ■ • Tho gross.public debt on March 31, 1907, was £64,179,040. On March 31 last it was £66,453,897, or an increase of £2,274,857. This may appear'to bo.a very large increase, but>so long as-tho policy to acquiro land for close''settlement, , construction of- railways; roads, and bridges,: lending, to 'Jccal bodiesj and making-advances to settlers is approved of by. Parliament, tlie,public debt, of the Dominion must go on increasing, and it must not .bo forgotten that our assets, many'of them direct interest-bearing,, proportionately increase., .A; largo portion -of this, increase of debt is.Cdevbted' 'to 'expenditure . of a. reproductive "ihar'acter.' £864,600 was obtained for public'works, £50,000 for improving the Hutt Railway and road, £65,000 for railway, improvements under, the. Act ofl9Q4,""and 'debentures to the' amount- of £53,476' iwere' issued in respect- of the' WaiRailway, the this'parinstance being- in'the first place found •bySthe settfers; of'the district'.'' For-the. purchase':' of '-"estates' 'Wo!' issued...' debentures, '£"410,690; for lending moneys to local 'a'ti--4hbrities,'-£lßo,ooo'; r for' making "advances tp Settlers; : £550,000;' and . fpr';:advanc'es'' : to Writers, £185,000. 'In -addition, £10,000-was for'scenery preservation,- £214: was 'inscribed! under,- the' New : Zealaaid-Consols "Act' of "1904,. arid; £34,877* was added- as-the reiult of' conversion",transactions;' but 'of"this latter amount' the Treasury will hive"about £20,000 at their disposal' to devote to further redemption of debentures:' i" £800,000-. w'as. raised 'under' the; - Reserve' Fund -, Securities Act of last session;, and'used' jn 'terms'of the-'Act- for tho' purchaso' : of 'gilt-edged ' securities', so that we'have an • interest-bearing assist ' for "the ' amount -which" was given 'to provide, stock under which the'fininciaj'position' of'6nr country in' 'England" has been id ado so strong—a position that must' bo a source of very-great-satisfactidn-'to'tho wellwishers •of the Dominion. • ■ .We paid off £40,000,0f State coal'mines debentures from the; profits of'the Coal? Mines Account, and ' redeemed' £80,0,000 "of' Imperial guaranteed debentures'' from 'the l accrued' sinking- fund, as well as' £124,000 of consolidated, stock ! debentures' issued against" tho "accretions of 'the sinking fund of the Immigration' and Public Works Loan, Of, tho'iiew debt.raisid no less a sum -than £2,360*904' may' be "set' down as being;of a'directly: inter'est-pro'ducirig character/as follows'■.-. ' . 'V-J'

fFor 'acqui/enient" of lands .for ■;' : settlement',--' ' " '440,690 ' i ' .'For. additions' to open ,lines' l ]..; :200,000 '. J • ;For-loans :to ;^Jocal -authorities' " 185,000 " . 'For"adfaiities"to' settlers";"' .'..'.',' 550,000' ( ! 'For advances to workers -185,000',. 1 --For "investment^in'-gilt-edged " *■■■ v. securities' ... ,-. :'.i ■ ':' '.V.' 800,000'- /: ; Fdr : New Zealand 'Consols' '• . . deposits ... '•• .i.- ... ■ 214 • 1 i:/ :A . Total '.i,. 2,360,904 1 leaving £877,953 ]as issued. for general- pur-, ! poses;'therefore, if jxiu allow for £964,000-of' , debt-, redeemed; -nq" additional burden for 'ill- • tere'st' has: been, the taxpayers' of -tho : country :_in 'respect. df';this,'year;s. : increase'in ! tho debt. Vj LOANS MATURED, . 1 During .year no less a' sum than -. £2;552,900 fell due, a'iidihonourable membjers ( mil: bp. pleased, .to. know that'. I; was; ablo to' , aTraingefor;,.their ; renewal > .• or. .payment.; 'Of .this - large, i'.sum "£887,600 : , renewed,', £569,100 was.'p'aid:off/£196,500 ' wias converted,; and'£924,ooo.\was redeemed . .out of accriied, sinking funds, ; £5700 is' . sjiill outsta,nding v .Q,wirig to,the redemption.,of: : the: '.'£800,(300 :• ; ; ; .debe'ntures, £124,000 "cbiisolidate'drstDck' debentures,', and the payment-off of £40,000-StatdVcoal-miiies debentures an;,)n(mediate; ahnual-.saving to: | the'ponsqlidal'ed 'Fund,; in interest ;.and sink-' ing "fund, of £§li? 40 : was effectedas' well ag, a .direct, Baving ,of'£2ooo'. per. annum in ■ •interest made'-by'the coiiversion' and redeinp-, [ tion 'of ■ the. otheft'debentu?®; a' : 're¥illtWhich: «. must ' bo .highly ' .gratifying;' to :r horioiirabl9 ' , members. •• : ' ' '/ ' "M. '■' ~ ' • , RESERVE-FUND SECURITIES. Last . session I obtained authority to issue ; debentures under; the: Reserve Fund Securi- i ities.Act, the'.proceeds to be invested in" giltedged securities, fri London, .tw form .a'reserve fund which in'times of. emergency wpuld '. be available,to y meet any. unexpected financial, contingency../that' might arise. The. deben-- t tiiresrwpro created and'sold'.at 3i'per'cent.,', and the proceeds were invested through tho High Commissioner in the direction indicated by the Act. 'The'operation) l was a most suc- ; desire/.to^.,acknowledge the , ,valuable assistance,rendered to;tho. J Dominion : . iiy the Hon.-W. P. Reeves in this important ; matter. Tho; investment consists of first-class - Marketable securities.,on which I, am,: quite, ,'advancos can .easily be obtained ; jn : . financial pressuroi so .'that our po'si.tioiviu London. is .exceptionally .strong, Tho' '■ 'ripmiuVl,.value, of' securities purchased'.-is- : .£.856,\1S 135.; Sd.; .being ~a' gain 0f'.£56,119. ' ; 34." stock,• which, for the', information: of honourable I may'' say 'moans that all Uiose securities, if held until maturity' ■ would return to' New V.Zealand, a, profit' of , • ";£56,119 ; 3s,Aßd., and |,in' the meantimd . we' ''fMeiye I ;abpiit'^26,63l' , per:.annum as...intferest,. • •br 'an of £3 ss. per.'cent.''.'on,>the' " amount 1 inVettecl. ' We' .wefe' fortunafe' in being able to secure the stocks at from '5-to' 15 per cent, below what they wopld have stood at, wore . tie times''really-'"good in the stock-market. • '

CUSTOMS. ' • iThe -working'of. the new;- 'tariff foas- been very. satisfactory,-, most, of * the changes being 1 ' of such a, character to facilitate the entering of goods at,th&' .Customhouse.. LAND AND TAX. ■ ■ ;; The ; receipts from" la.nid\W; exceeded ...the- • estimate by \£22;B46 > 7\and>^ei , '&coßg of the "amount "collected 'in >the.', pre-; vious year. , The v receipts show ; an, increase' on ihe estimate cfA £24,904, and "an increase of ,"£27,037 lof .the pfevious .year."=. The . total ..from s.bqtlj .taxes therefore produced £47,/oO'.morethaii'waß. estimated;, and £1X7,541. more tliam collected jn.the previous. year.'.\The land 'tax shows a .'apart .from' the. additional' revenue 'resulting, the. 'ampndiiig: legislation, bf .last. year-,.' iu\d. tlus notwithstanding the ( loss arising frdnV s.ub-. :diyisibii of estates tho' jGantt Purchase Department,!:'which' considerable. ' Tho ■ mcreaso,\in; orctumy' .land tax. amounted tb;,£28,991, "Tyhich" i£..\il- • .together from increased'.valuos; .the' increase: iji graduatcd'.laricl tax-amounted.to £60,67X1. r^thisyis', partly from ..'increased value?, ;'ar<h increased Tates . owing to ■legislation '« Itttfiji : session',, and from the' stoppage '.of, evasions. l . ■Tho increase in.'absentee Jtax—£l443—is';'con ; . sequent upon tho increase in. graduated.;-tax. principally, , upon which it is charged.T am glad to say that the. new provisions in! .to tho assessment of'the graduated' ?la'nd tax have proved-highly- efficient :iri,'preventing •'the'' extensive' evasions. 'of the . Spirit and: intentions; of the law' which* previously, existed, and in causing • the, subdivision of ■largo';estates. v . v;'" .' !POST. AND TELECRAPH!.DEPARTMENT. /Notwithstanding the low -postage and telegram rates in force in ' the Dominion,'-' and. .tho! miny concessions granted to tho public from the : beginning 1 of the') present • calendar year, ,the growth 'of the Post and Telegraph Department continues " unchecked, -revenue. for tho ; past year i having .' reached "£822,639. . At tho present' rato or progress the annual revenue will > soon exceed ono million pounds. 1 propose this, year to reduco the rental' for private' boxes''in tho smaller towns where 1 there _ is no . lettercarriers' delivery from £1. to' 10s. per annum. . This should be a . material convenience to tho settlors. V ADVANCES TO SETTLERS AND , .WORKERS. ' It' is difficult to adequately appreciate tho benefits that the Dominion has' derived from tho policy of making advanoss' to settlors, which provides tho means of enabling ': tho settlers and workers to make tho best uso of tho opportunities which have beon placed within thoir reach by tho' bqnssficial legislation of the Government. Abo-nfc> twenty-four thousand, settlers and workers have been assisted, many of them to positions-of affluence.

About £8,000,000 lias been a 'anted \to settlors, tho -average being only £348 each.' •'• Nearly 0110 and a half million was granted -- to j settlers ami workers during the past yea r. The business transacted during the yo! ir has -proved' to bo a 'record greatly in- ,exce« s. of any previous'year. A very strong rosi >rvo fund and ample'sinking fund is being built up out of profits, and 110 less lias'been mi ido up to tho present timo. Tho Workers' B ranch of tho Department has dono good bus iness sinco it began' operations a iittlo over tjwelvd months ago'; 1179.- applications 'have B eeri, granted, amounting to £296,305.. _It has increased so rapidly that the authority to boi tow £200,000 in any year is fourid 'tq bo inst ifficient,'and, ill order that' tbo'workers'for', whose .assistance the Act 'was placed on the \Statute Book, may receive the benefits to bo i derived from this institution, I'propose to introduce legislation. tQ amend the existing. Ad fc. LAND REVENUE-;, . j Tho gross revenue totalled. £6513,792 4s. 5d., the largest, yet received by thei Department. Of this amount territorial revenue amounted to v £289,603 6s. Sd., and.the rentals of landfor settlements estates produced; £230,357 4s. lia;. The amount required to q \iry out tho Government policy of an energetic, reafforestation is. £30,201., Scenery. pres{ >r,vation wjll require at least £9275;, but' pc.ssibly. moro will have to bo appropriated, as ij; is intended to expend £10,000 in securing ij ho beautiful scenery along tho Wangajiui Riser from destruction. . ' '" LAND FOR SETTLEMENTS. • During the past year the purchase of sixteen estates has'-been completed. t They, comprise 126,868 'acres; and the. pride'paid wa3 £565,728, which, with the costs : : incident to their settlement; and to tho settlement of lands previously acquired (£47,96ji), make a capital sum invested of £613,696. Tlio area of land opened, for selection undisr the Act during tlie year is 73;490 acres, and 114,150 acres. were .taken: up. by 420 .ten ants. Tho total area-leased to March 31, 19j)3, to 4217 tenants, i5'979,080 acres; 'Of, this, 679,410 acres ;'aro held, under leases! in J perpetuity, 67,107 under renewable . .loase, M:d 229,495 under'small-grazing-ruu'leasos and., miscellaneous'/tenures.. . , '. j ■'■' ;''f ÜBLIC SERVICE S.UPERANN UATION. iThe Public; Service Superannuation Act, which came into operation on J : l, 1908, has also proved to'be a popufcrr 'nieasuro judging by the number of public, sejryants who have be'eomo contributors: to tho Suiperannuation Fund.. Tho revenue derivablq.' from the deductions made from the salaries of contributors, so: far. 1 as ;can be-'ascertained at-pre-sent,: is .oyer" £40,000, and may j safely bo estimated' at nearly- £50,000 per, annum— which; with the £2(1,000 contribution.: from the Consolidated Fund, should-.pub the"fund in a-healthy.-condition-. .

. , ; MINING. : The. prosperous condition of theimiriing industry. still continues. The expoii"; of gold, although slightly !less than tliat of the'previous • year, is;, yet very conside'raiblo. , .The outlook for.the future continues toj itnprpve. The' export of;silver for.the past,'year'is a record one/ being £25,912 greater '] han, that of tho' previous' year,' and consideratily. ces's of'any annual export so far 1 recorded. The production of coal for the yeai was' tho largest ever "raised, and the extent of tho new' coal-areas- now being ■ operiod up ..both by. the.:. State' and private coinp'ariies'-is, an : indi-. cation that the' industrial 'activity "'of i the community' is flourishing.. s. in"tho State coal-mines' have'beeri/very satisfactory, ari'd;bbth of tho , mines have worked! practically" full time throughout-the year, i ,Depots for the "sale of this superior hbusohiold are - now established in tho' largo ccutrcs readilyr'-served ,by" shipping .portsj and .the trade'dbne'has,'steadily increased. ' There is, nfr trouble .in dealing with the output—in fact, .at ,the present ; t time,.. it, is difficult to, supply demands. - It has therefore' been de-cidetl''vto"dit-end the scjipo'of operations at the'' mines, and the ■ construction' of ,{tha ;extension 'of •' tho :railway-liho at ' thoj Point' Elizabeth' Mine to open up tho well-jknown coal-bearing areas in tho country at back of the present .workings is now being ai)!tively' carried 0n... The-net profit, of the two,; mines during' tho -last' - financial " year -was ,1£8440 Bs;' 3d., u a-'detailed statement of Hvhicji,, together,': with the reports' of the jm'anagelmeiit,: will'be duly/presbnted to Parliament. '. ' " CHEAP CABLES. ' The Minister; expressed sympathy with : , Mr. Henniker : Heaton's : proposed penny-a-word rate'for cable-messages, and suggests oirten-' siori of the v British State-owned systeriL'-'by croating'a land .lino Voross Canada and l laying '.a special cable,- across the "Atlantic'. ; Tlio adoption'of is next foroahadoiived. WELLINCTON-;iyiANAWATU .RAILWAY, Honourable members will recollect (con-tinues.-the'istatbment). that an 'annoinipemont'.was made in last year's Public Works Statement :b.f tho. intention of^'tho' Government to acquiro the Wellington Railway'.in the manner prescribed in ,tho Railways' Construction and Land in.fulfilment of'that; intention.tho requisito formaL'twelvo months' notice was-duly;served upon tho, company 9n Dccomber. 7 last'.. The existing'legislation orj. .the .subject .seems 1 to be defective in-ono respect, inasmuch as-it doos not provide for the railway vesting? in ,the .Crown on the maturity of the'.notice;of intention Ho. purchase'. It seems to can-, template that tho .arbitration proceedings' to,' determino the, prico'.to bo, paid.'-for'. linevshall*, first taae : place, .and, as theisej may occupy some (and it would scarcely! be - fair to tlie company to hurry them, oven' ifsUch a'course were legally practicable),, the date on which tho Government would ob-; tain possession, of the railway, without aa; amendment of' the Act, is very indefinite. In viow: of.thisj it is proposed to introjluco;;a': Bill to provide for tho vesting of the line! iri: tho Crown on of tho notice'ofintention to purchase—namely, on Decsmber; ■7:. next. What; is fair and just to tlio! 'company will be done,-as wo have no desire: .to. deprive' it of what is its due. -, If- the) Bill passes it will liave 'the effect of placirigl tho whole railway between Auckland l and ' ■ Wellington in .the possession of the Govern-:' raont in time for. the commencement of !the' fast through mail service, and will, at tliei same timo. lea yo the company entirely iin-! hampered as to .when it will tako the necesri ..sary,: steps to bring* the question of the! 'assessment of .the. price to be.- paid for its' I lme;befdre the arbitration, tribunal provided'!; for in'the. Act. p ADVANCES TO SETTLERS. (

' , After an • allusion to tho inorcasp of the' naval;subsidy up' to Minister states that - lie .will' ask the House to increase the'limits of borrowing foiv Advances to ,settler's; from;'£spo;ooo up to ,£600,000 per annum;';-Ho suggests' that instead .of. tlio. of * •this Department' being .in-, the' Public 'Debt,'. the' whole loan •should "be transferred to .the" Advances ,to' Settlers." Board,,; making provision' by '.law 1 for.'''the' ; guarant«B of"tho repayments, .so as' useful Department-of;,tho.Do-: mityon upon a basis that would : more stricily r'epsxseht the true position.. , ■ TO",WORKERS. The ij'stronr of making advances to 'workers' is mora satisfactory -to -the- worker who do-; sires to tarnaUaomethan that of the Government purchasing . land in tho country, erecting nnd.le'asiiig them" to and I' am of the opinion (says the that this system of purchasing land and . biding homes can,'without any the.- workers, bo 'eased off, and that this operations for helping: porkers to .obtain could more. advantageously be conducted lixyn tho systematic basis that 'tho Advances t^ ; . Workers, provides. Tho 'total number, of workers' homes throughouttho Dominion is U, In one year under the Advances to Worfci's Act 1179 homes have .been provided for tV'ioso who havo availed themselvos of.. its iberal conditions, while under tho system of'porkers' dwellings only some twelvo homes we-p established throughout tho country last ' ,1 propose to increase, tho amount r<nv authorised from £200,000 to £500,000 * SUPERANNUATION. :A proposal will bo submitVd for assimiia.ting as'iar as practicable th oystoms of tho Police and Education with that of the Civil Servico tion. While offecting those alterations I to ask the Houso to enable tho men went out

011 striko in tho Railway Department in 189() to couut for continuous servico under certain' conditions. Tho Amalgamated Society of Railway Employees is willing to help thorn' financially, and 'I will ask tho Houso to raako provision that on payment of £1500 to tho Railway 'Superannuation Fund tho present disability will bo removed.

A Bill will shortly bo introduced inaugurating a National Superannuation Fund to which all Now Zealand residents under tho ago of fifty-five will bo at liberty to contribute. I propose that tho State shall also contribute towards the support- of tho fund, which will provido to tho contributors, ip roturn for moderato payments, pensions not exceeding £2 a week in any case, either onattaining the ago of sixty or sixty-five, or on becoming ■ permanently unablo to work by reason of sickness or accident before reaching the pension'age. Tlio fund will also provide 'assistance to tho widows and orphans of contributors. I propose ■ that widows should receive £13 per.year and-their children ss. per week, orphans also ss. weekly, until each attains the ago of fourteen years. I will also submit a supplementary scheme dealing specially with tho low-wago earners with large families. "Under my proposals 1 should expect, before many years pass by, that a large decrease will bo mado in tho amount wo pay to tho aged under tlie Old ! Ago Pensions Act. This system will bo administered by the 1 Old Age Pensions Department making uso of our valuable Postal -Department, and paying it fairly for the work in this respect it performs.

LOCAL BODIES SUPERANNUATION. • A measure will be submitted for the purpose, of enabling any local body to inaugurate a .superannuation fund for its employees, each local body being allowed to arrango the- details to suit 'its,, own circumstances, subjcct to the scheme being approved by tho Minister of Finance. Tho funds will bo administered by the local bodies themselves, but v ill be 'subject to periodical Government valua--tion." Each local body will be required ■to supplement the contributions of its employees by subsidising the fund from timo to -time as may_ be_ found necessary after actuarial investigation. SPECIAL LAND SETTLEMENT. _. The large areas of lands that are now being put on the . market by private holders calls for consideration from the standpoint of helping desirable settlers to acquiro for settlement selections of the same areas, as for in' tho Land for Settlements Act, upon tho easiest financial conditions, Tho work of tho Land for Settlements Act involves an expenditure of about half a milium sterling per annum, which adds directly to our public debt, is meeting a great want, and should not in any way bo curtailed. After careful consideration I am of the opinion that a departure-in another direction should be mado and: a system of special settlement association established, to enable tlio.-closer settlement of the land to be carried out still ■more expeditiously. I'therefore propose to submit proposals this session upon tho following lines: — --

Upon application by any numbor, ton'or more, of intending bona'fidol settlers who- have obtained from a private ; landowner ait offer to . sell the estate at ' a price fixed by'hitn, the Land Purchaso Board shall'inspect the land: to ascertain ' its suitability for settlement and tho fair- . ness of the price, and if tho Board i r . satisfied on both points it .will • report ■' to ' the' Minister of Finance.. The pro- ■ posed settler will then submit a'schemo' " of settlement, which must be consistent ' with the limitations and other conditions . of the. Land for. Settlements 'Act,"lf ~ the scheme is approved by the Land ' ' Purchaso Board, the Advances to Settlers Department, through the Minister of '. ' Finance, will : obtain' tlio money 'required ' to purchaso' the ostato' at'tho-lowest pos- . sible rato' of interest, giving to tho lender , as .security for such money a mortagage.-' ' ■ over'tho estate .in the name of tho sct- ] ,]tiers, Tvho'"will also bind' themsolvos as, • ■ ordinary mortgagors by their own '■'covenants, -in addition' to the' security, '■ 'arid- the Government, will guarantee "tlio- 1 " repayment of 'capital and of 'interest'Co" . the lender. v ■' , I propose to provide for a.redemption fund by which the settlerswould repay both principal and intorest in 32J- years. . By adopting this course, tho country's guarantee-for capital'and interest would be made absolutely ,safo, .'inasmuch as. the reduction byway, of sinking fund paid by the settlors themselves ■would, xipon every payment; strengthen, tho • security both for tho lender and'Govornmsnt guaranteo, and all improvomonts effected upon the: special 'settlements would still further reduce the liability of tho lender and improve 'tho' security of the' State. Thus the guaranitee -ofthe Dominion would be steadily reduced and the valuo of tho security steadily increased. The proposed settlors should have the same right -of usage of the laud as is now enjoyed;by land-for-settlement tenants. It would give greater heart to sottlers, o'wnors tho land 'would become their own. It would givo greater heart to' settlers, -.•would develop settlement, and would prevent any direot addition-to the Dominion's debt.' , LOANS TO LOCAL AUTHORITIES. '. There'were cases where, an increase in the loans obtainable under 'the -Loans to Local Bodies Act. was advisable. He proposed to submit legislation by which tho limits for the local bodies' loans may bo removed in cases where , the loans , are obtained-, outside the Government, but with, a State guarantee. If. they borrowed direct from, tho Government tho present limits'must' remain. For these State-guaranteed loans security 'by special fate, and also a sinking fund, will bo provided, and the proceeds paid to the Public Trustee, tho. Minister of. Finance reserving the right, of control as to what the amount of loan should bo. The sinlting furid' shoUld be 1 per cent., and of this amount fchS' G,overnment should pay J per cent, and tho local body the other i per cent. The money should, without difhculty, bo obtained at 4 per cent.) and under such a system, with the lenders secured by a guarantee of the Dominion, there would be an easy method' of local bodies',finance, under which he ventured to predict that , public bodies would not re.qiiire to levy at tho outside moro than half :]the maximum rates upon property-owners— i'that which they did levy being used chiefly - for administrative purposes and the provision "of a sinking fund. At present the tendency is that, when tho full amount of an advanco '.under the Loans to. Local Bodies Act is .'made,' tlio Government is asked to pay a 'subsidy of £1 for £1 'upon its own advanco ■ under tlie Loans to Local Bodies Act, and it is impossible that such .a,.system as this should bo.allowed to continue.'

) -V-Phe system of roading by somo local bodies I .'was unsatisfactory. Ho would submit pro-1 iposals for a number of modem stone.'icrushers to bo sent where required, l to bo J (either worked by the Roads Department and jchargod : to the local body, or lent to tho ideal body, with a charge for interest and i!oprccia.tion, and v/orked by themselves, 'employment of a local engineer should: to made compulsory.' To help this a reduction of 25 per cent.' on tho haulage of metal iff u- local bodies would bo made by tho Railit ay Department. Within ton' years 'a .great tj.'ansformatioh;could,be effected, and .a .con-. ' si jquent decrease ensue* in tho moneys re•q ui'red. for roading purposes. To meet tho ''requirements, of tho times he proposed this yj.vjr to ask the House to provide for £650,000 fon roads and bridges. Of ~ this amount £: .150,000 will be specially devoted to roads in the backblocks,. and will bo continued for a pi iriod of four years, including, tho current A. million in-all would bo expended for tb is purpose. IRRIGATION. . The services of a qualified engineer would sll or'tly bo engaged, and , this important bcancb of the Government's policy would bo actively in hand. Tho matter had noj; been no fleeted. ' railway construction. . 1 [t was probablo' that tho regular express trq iu sorvico on tho Main Trunk would bo in- operation by Nov.ombor 1. , parliamentary buildings. I tcgarding tho destruction. of _ tho Tarliamq atary Buildings, tho Prirao Minister says: It lis erroneous for any ono to supposo that tho policy, of not insuring tho public building! 5 of tho Dominion is an unwjso ono. On tk> contrary, I am of opinion that as a matter of business it is the cheapest, and conscqs aentiy tho wisest. In tho light of expeu ience it can easily bo shown that the cost

of tho premiums would amount to far moro .than tho aggregate amount of losses that have occurred, or may bo expected to occur in the future. INDUSTRIAL MATTERS, Though the Conciliation and Arbitration Act, oaid tho Premier, has been tho subject of considerable criticism, it is, I think, beyond ai'l question that it has conferred distinct benefits both upon tho employers and tho employees. It has enabled uniformity of procodviro to bo adopted by the manufacturers and. mercantile community throughout tho Dom.uiion. Those who remember tho position in'.'.New Zealand anterior to this law being upon, \tho Statuto Bcolc can have anything but pk-asant memories of tho unsatisfactory position in which- tho workers at that period iVind themselves. Time brings changes, and what lias,'up to a point been successful machinery lias m the light of recent disturbances shown weakness in this direction that requires remedial legislation to try and put matters .upon a more satisfactory footing. The matter has been fully considered, and my c.olleague will submit to' honourablo members, tho proposals of tho Government in this -.direction. Two objects must bp kept beforo i'.s: to do what is right to tho workers and w\iat is . just to tho employers. If tho systein of conciliation and; arbitration is to stand '.wo must insure that tho awards of the Arbiivation?Court, are respected by both sides. Iv wo cannot achieve this, then inevitnb.'.y tho ..Acts must, bo repealed. I should much regret to 'see the latter '..course .followed,, and I am sure th.it 1 • the country generaJly will indorse this sentiment. / There are extremists, .of course, on both sidessome w.ho will not recognis'e the rights of labour, and by so doing add to the difficulties. On,tho other hand,- there are' those who, by extreme agitation, mako s, complicated matter yot more difficult of adjustment or administration. , AYhat occurred in Canterbury a short time ago when some-soven thousand farmers were citecl- at the instance of.a small mvnority should'not be possible under a well-organised system-of conciliation and arbitration. The farmers,- oil the: other Hand, must recognise that the conditions uiv der 'which wo are. living have greatly changed, and that is fair and cquitablo. and just should bo done to the workers ,whom they employ.l do Not-say that this has übt been dono in the paat.' On tho other hand, tho conditions under which tho perishablo products of our country aro obtained require to bo not only \ considered but re-, spected in doing what\is right and just to tho farmers engaged in • our country life. '

LOANS Mi\f ( UR!NC.' ; During the current ysar tho total amount of loans that foil and aro'to fall duo amount to ; £3,133)238. Satisfactory arrangements havo already been mado \for the renewal of £1,750,000, and at no rato of interest than existed previously./ Already tho conversion of £500,000 of o'ur debentures lias been effected at a reductio.\\ of tho interest which they, were formerly. \ bearing. Thus £2,250,000 out'of the total. imatured or maturing this year havo been fu.\ly provided for. This leavos a balance, of concerning which no difficulty is anticipated., Tlieso important matters have, received most Careful attention in every long beforo the time of their'maturing arrives. ;.In this respect (says tho, Minister) /I liavo. already looked 'ahead, to tho year 1,910), and I feol confident. that successful renewals and conversions for such loans as will bo falling.due' in that year will bo satisfactorily: arranged. WOOL MARKET. / *' The most experienced men; engaged .in the wool business of tho world. recognise that tho wool supplies have not- increased any-, thing in proportion to the increase of population, and somo of the best'judges aro of opinion that tho fall in the; value .of. \yool which has taken place, due chiefly to, tho dislocation of the finahcial; world in Germany and America, cannot ions continue, $'o that Vo aro at least warranted, without attempting to prophesy as to tie future of this important staple product, . believing that tho present low values must; beforo long advance.: j ' ' FINANCE'FOR 1908-9—E^XPENDITURc. \ : Tho . estimated expenditure for tho pre-/ sent : year , amounts : to ).-• £8,662,993, : or' £449,028 moro than that of' last year. Dealing first with the permanent charges, I 'find .'that-interest and 'sinking irund will requiro an additional £78,000 to meet interest, duo principally on tho million pjoan and tho debentures issued under the 1 Reservo Funds; Securities Act. -In latter case, however; most.of tho-interest' ia reccuped to the Coil-' soiidated. Fund from' the'investment of tho money raised under that Ai£. Under special Acts tho increaso ou the tiotal is small, and calls for,no special remark.' Coming to tho departmental appropriations, there is an increaso of £371j000 consequent on tho growing requirements of tho services.; Tho Postal and Telegraph Department) is responsible for: ■£89,000 of this amount,- j ' the salary vote showing an increase of p55,000, which' is caused by tho employment of additional officors and the payment of increments under the Departmental Classification Act. 1 Working'railways ask for an additional £56,700. Taking into' account the 'increased expenditure involved on' the comimg into operation of the new Classification (Act, tho enhanced price of . supplies ■ generally, and the additional wages and expensep of working new lines to be .takqn over, the working expenses' of tho year" cannot bo placed at less than £2,020,000, and as tho Department expects to earn £2,835>000 for the twelve months there will ibe a net return of £815,000 to the Consolidated Fundi ' The! Lands' and Survey Department showsv'an. increase of £59,900, which is required, for surveys'. and for providing apd equipping additional surveyors, also to , covor the cost of grass-seed and relief givefl' to settlors consequent ou the drought ami bush fires. Defonce services need £38,000 more, than was expended last year. Of this sum '£14,000 is to cover tho cost, of tie ' recent Easter manoeuvres held throughout tho Dominion. Tho good results attained!will, I feel sure, justify that expenditure. £10,000 is also required 1 for equipment, ammunition, and warlike stores, and additional'funds are needed for capitation and, other services. ..The Education Department asks for an additional £35,000, which to a great, extent is duo to natural increase of the J services,' ' further sums. boing required for technical education, training colleges, and -stKondary education. The Industries and Commerce, and Tourist Department is responsible'for an ingreaso of £16,700. Tho chief causo.of the increaso'is owing to tho recoveries made by tho Department being credited to revenue,' as required by legislation passed last session, instead of to tho vote as hitherto. Police Department shows an increase of £15,600, accounted for by the necessity to provido more police protection to localities that are insufficiently policed, and for ■ the payment to members of thc Forco the increased rate of pay as fixed by regulation. Tho increaso of £13,000 in agricultural class is duo chiefly, to the additional amount required for inspection of dairies and noxious weeds. " ; REVENUE. ■ I am able to estimate our revenue from all as £8,985,000, or £70,946 less than the amount received ;last, year. 71 estimate the amount of Customs revenue/will: be £2,950,000, or ; £153,565 less than the collections, of last year. Tho gross oa,rnings of the Railways for the twelve months may bo safely put down as £2,835,000, or £69,605 moro than tho actual ' receipts of last year. estimated results at close of YEAR. , Bringing the estimates of expenditure and revenue togethor, tho position at tlics closo of tho. current. financial year may bo set down as follows:— , • v £ • Estimated revenue 8,985,000; Estimated expenditure ...; 8,662,993 Excoss of revenuo over expenditure. 322,007 Add balance. from last year 767,849 . Total £1,089,850 . From this amount- it is proposed to set' aside £800,000 for transfer to Public Works Fund, and £60,000 for additional contribution to British Navy, leaving a balance of £229,856 for such further appropriations as may bo asked for in the supplementary estimates. t

• / ESTIMATES. ' ' The work of the classification of the Civil Scrvico had not so far been sufficiently completed to enable the Board to send forward its report for presentation to Parliament. .On that account the estimates submitted necessarily did not contain any provision for such recommendations as would in the ordinary course have been expected- as'the outcome of the classification of the Servico. It the Board was unable to report Before the end of the session; he:would make provision for the various increases upon the : — ipiemoniary estimates.. In all cases the amounts of salaries shown on tho estimates wero those which the officers wore now receiving, excepting those who'! wero entitled-to increments .wider' classification or regulation; ■■■' !.' • - - A MILLION AND A HALF LOAN; . £650,000 is to be expended upon' roaris; and of this amount £250,000 - will ;be devoted- to. roads in the. bacltblbcks, the, balance of the ■£6oo,ooo—viz.,' £400,000—being Utilised' for roads and generally. ' £.350,000. will be deyoted to additions to open lines,' making • further provision for /.'railway.; rolling-, stock, etc. In order ' to'"enable . tho', .morcf' vigorous* prosecution 'of : " our . railways ./to bo carried on', one million sterling' for this prrpose would fob set aside. Eor public buildings, telegraph. and telephone extension, ;ii is proposed to-set aside £350,000, this- making a total of £2,350,000. In order to cnnbl? provision to bo made for this' suni, ho proposed to pay to the Public Works Fund from the Consolidated Revenuo £800,000, and to raise a loan for these purposes of £1,250.000. This, with the .£-191,800 available-from ■ last -year's , loan-, and the £200,000' authorisedunder the Post/Offices Savings .Bank Kind Investment Account; out"of which thn erection of post offices in Auckland and \Yellington will be provided for,-gave a-total c'f ways and means for the current year of £2, ±41,800. RAILWAYS. ; ' It wa_s ; intended to add some new lines ■to the list of tlioso in".hand at present.'-Full details of the proposals would be contained in the Public Works Statement. • IN CONCLUSION.- ' : . ' The' Statement concludes with' T a. reference to the recent financial crisis "in America.'- ; lt. was at such periods, wo "required to- bo cool -and 1 not allow our better judgment' to be warped.._ "It is satisfactory',''looking" "at the critical time .outside, tho -Dominion towhich I have referred," says/'tho Premier, " that' we ; have ; be6n:able'..to .get. along,-.with-' out - any genuine cause, for "alarm". ' It ,is something, tb be able to tell"."you that .thorevenuo for the first quarter this year/shows' an increase, oveh' though it l is not large, over that of the same period for-last year;, this .notwithstanding- the large,.-.concessions in revonuo made to the public; . ; ahd' J tliis,Ltoo, in spite of tho reiterated' people that we had staTte'd";pn; i ai7.dpjifnwa : rd grade. Eight months, have, passed' by. since tho financial difficulty in . America-and land was at. its .height, and our revenue/for the last quarter/ during which, all the reductions -. were in' operation, shows that wo are ■ still . moro than ', holding .our own. Money.-, is/.. now easy and plentiful in "England, and the 'Bank of England, rate has, for,some time been down to 2J per cent. I havo not at any time shut mv eyes to tho necessity.-fo'r/.cautiori—l have, always in. connection! with 'the 'country's :finance been careful; but I"do not .subscribe to those who. ,take/.the, view that trouble and disaster are imminent .in..New Zealand because .of every. recurring, .change that J from time' to' timovpresents itself on the horizon of other countries'!"".