OUR FINANCES.

Dominion, Volume 2, Issue 559, 14 July 1909, Page 8

OUR FINANCES.

HON. J. A. MILLAR AND MR. BART KENT. Replying to'the statement mado by Mr. Bart Kent, chairman of'the Auckland Chamber of Commerce, that tho total expenditure of tho Dominion for 1908-9 exceeded the total revenue by £584,328, the Hon. J.' A.'Millar, Acting-Minister of Finance, has tho follow-' ing.to say:—. " . . ; "I am sorryi" ho romarke, "to boo that tho gontleman publicly made tho 'statement, when a closer examination of'tho accounts would have shown: him how incorrect lie was when ho said that our expenditure had exceeded tho, revenuo for last year.by £584,328. It appears 'to me that a m.istako has- been made by Mr. Kent by taking, the amount brought forward (£767,849). at the beginning of tho year, and subtracting from-that tho balance at the end of. the- year (£184,321), and then saying that that is the excess of expenditure over revenue; , -.. .' '' ■ / "A careful study of tho figures would have shown that during the year £800,000. was transferred from ■ the consolidated' revenuo to tho : Public Works' 'Fund. This,' of course, is not an experiditiye from the Consolidated Fund, but is a transfer, to the Public Works Fund in lieu of borrowed money. It is well known that for years past tho surplus ■ from tho Consolidated Fund has been transferred to tho Public Works Fund, but the surplus of this .year can only be. transferred in tho following year/ as there, is no authority of Parliament to do so, in the first place,' and, furthermore, the year has to be closed before you ascertain what your surplus ie. "The result is that the ascertained, surplus for the year ending March 31, 1908, was in duo course transferred to the Public Works Fund, plus £32,000: from the revenue; account of the year. To place tho thing more cloarly, so that neither Mr. Kent nor anyone else'can make any mistake, I may state the figuros as follow:-?- . ■....'. Revenue ... ... ........ A 001.185 Other receipts .;. .« ... 800 Total revenuo . ..,., ,-.> Appropriations ~. >-. ',•■■ £8,(8o,51d Excess of receipts over.expendi- ; . ■ ture ~..:.../ ... £216,472 Balance brought forward-from „_ n previous year-, ...... £767,84J Excess of ■ receipts as above .... £216,4(2 '' Total V.. . ; . ..::...; £U84,32l Transferred to Public Works -..■ Fund ' ... ■; ... : • • £800,000 Credit balance, March 31,1909... £184,321 "Tho Prime Minister, at Inyercargill, madethis- perfectly clear when outlining; the financial- position.. He said: 'After bringing forwarU the available balance of tho previous year, of. £767,849, and transferring' £800,000 out of revenue to the Public Works Fund, I estimated a. surplus of '£7,5,013. I. aiu, not unnaturally, more than ordraanly gratified to be able to tell,you that an, analysis of the figures shows the surplus!for the year to be £184,321—that is,. £109,118; more,than I estimated in the Budget." ! .-■'.- ■'.. ( , "If has! been the policy, for many., years, Mr. Millar adds, "to transfer' tfiV surplus from the Consolidated Fund to the/ Public Works Fund, and since'lß9l, no'less than £7,230,000 has been so. transferred, ■ which is; pretty clear proof that there must have been an-excess of revenue, ■ otherwise the money, uould not: have, been' transferred." ; ;/:':MR. 'BAET'KENT IN-REPLY. ---: (By Telegraph.—Special Correspondent.), , . Auckland, July ,13. ~'■■ ' In' the course of'an'interview torday, -Mr.. Bart Kent, chairman of the Auckland Chamber of Commerce;•adhered', to his former; stateinente regarding the finance of the, Dominion, the accuracy of which the Hon.. Mr. Millar has questioned;. J ...... ■■-.- ■ . "Referring' to the Ministers statements on this matter/ , ' said Mr.. Kent,- _'.'! can assuro him that, with respect to•; the financial. position.of the Domiuion/for.the -year-IJUS. to 1999, no error.haa.beeamadeonmy part. The' figures stand, 'and are incontrovertible.. With all respect,;. I will, place.'an lndcpendInt opinion before Mr..-.Mi11ar,,.., :; -. ■:■•■ Mr. Kent then,proceeded to; quote from, the! "Australasian Insurance- and. ■Banking. Record" for June 21 last,, as. follows:—' In the financial year 1906-1907; the- total expenditure -exceeded the, revenue by £150,850,' while in 1907-1908 there was a .surplus,re- ; venue over expenditure l of £41,981. But for tho' financial year 1908-1909 tho total expenditure has exceeded' the revenue by £584,328. The balance brought forward tho beginningof tho financial year 1908-1901 was £767,849, and, ■ after- making some small adjustments, the balance 1909, was £184,321. This item of- £154,321; was announced by, the Prime Minister at Invercargill on May 1 as the surplus for the year, I but in face of the actual deficiency of £584,328 on the year's this method of stating figures can only give .an erroneous view of. the'subject to the Now ifealand public! The matter,is one, of; considerable practical importance, for.'it-is essential that.the subject of finanep should be. presented in a correct, light 'to secure..the weight of public opinion. in support of the, steps necessary. to restore a proper equilibrium ia public accounts.' As. it is, 1 , the Prime Minister announces in .ono that th« ; finances are -. exceedingly... satisfactory, that the surplus (really the balance, at. the end of the financial year)- is so much,.that .a substantial, reduction' in expenditure is required, »and that:the Government' has set to work to make reductions in the public; service to the extent of at least ■;£250,000 per annum While circumstances, and a deficioncy of £584,328, may make retrenchment expedient, the case, as presented; by the.Primo Minister, is merely a nonsequitur. •,... ■■ i Mr Kent also called'attention to a table given in the article quoted from, in which the revenue and expenditure .of the.Domimon for the year 19Q8-1909 was given as,follows: —Ordinary revenue,; £8,778,328; territorial, revenue, '£222,857;, total £9,001,185; .general expenditure,' £B;7Bs;sl3;; transferred .to Public %orks tad, £800,000; total,- £9,585,513; excess of' expenditure over ■ revenue, £584,328.- , .... 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