LAST YEAR'S FINANCES.

Dominion, Volume 2, Issue 558, 13 July 1909, Page 4

LAST YEAR'S FINANCES.

' It has' been stated as "a positive fact" b> Mr. Kent, chairman of the Auckland Chamber of Commerce, that "thG total cxponditure of the Dominion for 1008-0 expoodod its .total revenue by £884,328."

This is • the conclusion drawn from the fact that the revenue which actually came in during the 'year was exceeded by the expenditure, "■including, the £800,000 "transferred," as it is called, to thc'Public Works Fund., Mr. Kent has been angrily assailed in the Ministerialist press for making such a "blunder." Of course Mr. Kent did not make any blunder. Ho , made no attempt to misrepresent the actual figures, which are on record, and the facts denoted by which cannot be disputed. "Whether the balance brought forward at the beginning of the year should be omitted when considering the year's working of the finances may be open to ■question, but the facts as stated by Hit, •Kent arc indisputable. To make this clear we give below two balance-sheets prepared by us, which serve to illustrate, the argument; the first being the Government's method of showing : the position; the second giving Mr.' Kent's view of it; Shillings and pence are omitted: Receipts. \ £ Balance at beginning of year ... 767,849 Rovenue ... ... ,;. ...9,001,185 Recoveries > ... 800 Total ... ■ 9,769,834 Expenditure. Permanent appropriations ... 3,210,030 Annual appropriations 5,575,483 Transferred to Public Works ... 800,000 .Total ' 9,585,513 The credit balance thus shown from the Government's point of view .is, £184,321. The surplus, it will bo rcmomb*ered, was' stated to be £184,320 10s. 5d., but for the sake of simplicity we are dealing in pounds only. Now for Mr. Kent's estimate of the year's working: * Receipts. ' £ ' Revenue ... ; ... ... ... 9,001,185: Expenditure. / £ Permanent appropriationa 3,210,030 Annual appropriations 6,675,48! Transferred to Public Works ... 800,000 9,585,513 There is a debit balance here on the year's working of £584,328. Mk. Kent, it will, bo seen, has omitted the £767,849, brought forward from the previous year and also the £800 of recoveries from the previous year. These he' claims are not really part of the year's, revenue. On the actual revenue and expenditure legitimately chargeable to the year he shows a working loss of over half a million. To put the position in another way, the year began with a credit of £767,849, and it ended with a credit still, but very much reduced, namely, to £184,321. 'There is this to be said of the method of analyeis followed by the President of the Auckland Chamber of Commerce that it shows us the worst, so far as it is ascortainable from the public accounts. While his statement of tho year's working is quite accurate, it must not be supposed that it discloses anything new, nor docs it contradict tho Prime Minister's announcement as to a surplus of £184,000 ojdd. It simply puts tho position - in a new light. The public accounts ehow that the current year began with'£lß4,ooo to credit. But tho year before there f was a credit of £767,000 odd. • That' is the difference em-' ph'asiscd by Mil. Kent's analysis of tho figures. The Government will'say that ,this position-was the'transference of £800,000 "to the Consolidated Fund. Mr. Kent answers that it does not patter how it was'created: The fact is thet the position exists. He might have added tha.t tho previous year £800,000 was taansferred to the Public Works Fund, and despite this thero was then a surplus of, £767,000. The matter would not be worth discussing just now., however, but for the fact that any new light on tho finances of the country should be welcomed. There is .spraething even in knowing 'the worst.