DOMINION FINANCES.

Dominion, Volume 5, Issue 1488, 10 July 1912, Page 6

DOMINION FINANCES.

A FORECAST. ■. UNEXHAUSTED AUTHORITIES, v .£4,750,120. The Hon. A. 11. MYERS (Minister i f or Finance) said he desired to .place before members of the House a statement of the financial position of the Dominion. He slated that the condition of the country's finances was, very sound. The revenue for the year ending Marclu 31 was the rerprd ono of J011,032,5W, showing a net increaso of ,£735,521 over that of.loio-11, and of. .£1,794,283 over that of 1909-10. The expenditure for the year was estimated at .£10,604,677; it was .£10,310,308, leaving a savin" on appropriations of '£261,309. It \exceeaed the expenditure of the year 191011 by <£997,262. The year's operations were as follow:— wS Balance, April 1 586,483 Receipts during year— £ Revenue 11,032,544 Other receipts 28,617 11,061,161 , Expenditure 10,340,368 1 Excess of reoeipts — 720,793 Credit balance on March ' 31 - 1,307,276 Transferred to Public Works — 500,000 Balance carried forward — 807,278 Since the, close of the financial year the revenue was still increasing. The revenue during the period April 1 to :J,une 30was £2,477,497 12s. Bd., compared with" £2,238,595 4s. 4d. during the corresponding three months of 1911. The position at June was as follows:— 4 ' Balance March 31 807^275 RevenueOrdinary 2,388,388 Territorial 29,69ij National endowment ' 59,414 3,284,773 Deduct expenditurePermanent appropriations 1,119,408 Annual appropriations 1,302,818 Balance June 30 782,547 . There had been no necessity to issue a Treasury Bill during this quarter:— Forecast of the Year. The Minister estimated the revenue for 1912-13 as follows: — £ Customs 3,200,000 Railways 3,745,000' Stamps 898,000 Post and Telegraph 1,141,000 . Land Tax 650,000 Income Tax 450,000 Beer duty 119,000 Registration 95,165 Marine 47,000 Miscellaneous 309,530 Territorial 240,000 Endowment 59,414 To'al ll,ol4,nfin i Tho expenditure was estimated nt •£10,737,958, the increases tynn? .2153 387

in permanent. charges, and £239,20.4 in Departmental charges. Adding the balance from last year to the estimated revenue, and deducting the estimated expenditure, a surplus of .£1,084,227 remained. From this must be deducted the amount to be voted on tho Supplementary Estimates. This/would still allow a transfer of .£BOO,OOO to the Public Works Fund. Unexhausted Loan Authorities. The Minister also gave a statement showing the unexhausted authorities for raising loans in force at date, as follows:— . £ Aid to water-power works, 1910 500,000 Appropriation Act, 1911 100,0(10 Wailiou and Ohinemuri Rivers Improvement Act, 1910 50,000 Hutt Railway and Road Improvement Act,- 1910 5,320 Government Railways -Amend- • ment Act, .1910 48,450 Scenery Preservation Act, 1908... 50,000 State Fire Insurance Act, 1908... 98,000 N.Z. State Guaranteed Advances Act, 1909-10: — Advances to settlers 1,532,700 Advances to workers . 325,000 Land for settlement 720,650 Native land settlement 450,000 Local authorities •■ 850,000 • Guaranteed mining ' 20,000 Total .£4,750,120 - , Mr. Myers, commenting on this statement, said that there was reason for gratification at fcho fine condition of the country's revenue, and of the healthy condition of tho public purse, ire ventured the opinion that his successor wnul'*_ rejoice in the satisfactory financial position. In view of tile tacts that there vere unUnexliausted authorities for loans amounting to £1,750,000, and that a loan for ,£4,500,000 had been raised, it would not b& necessary to go upon the London market for some time. Tho Treasury was in a flourishing condition, and tho outlook was most promising. The Member for Awarua. SIR JOSEPH WARD (Awarua) said he wished to congratulate' tho honourable gentleman on having made a statement to the House of this very interesting and very satisfactory character, it ougm to fill his successor with a great deal of confidence, especially so far as it concerned the authorities available aud the financial results for the quarter just closed, xi-e would call the Attention of the House to the fact that this was the sequence in financial matters of many of thoso items that had been criticiseU very harshly. He had not unfrequently heard m and out of the House complaints based on the t'ooting-up of unexpended authorities, or the very unsatisfactory stato of attairs, and it was idle for him to draw attention to the fact that those authorities were obtained for more than one year, isow what was'the position? The gentleman who would succeed to the position oi Minister for Finance had unexhausted authorities to the amount of £4,750,120. lie would look forward with considerable interest to hear from the new Minister how many of the items would be reduced, because if the theoretical contention of th« party was sound, nothing approaching the amount of those, authorities would be required. This amount the new Government would have for use without asking the House for any ■ fresh appropriation, and ho quoted the amounts availablo for certain Departments. Mr. Massey: How much for public works ? Sir Joseph/Ward said that the amoulit raised under the loan for publio works was known by everybody. It remained now for those in authority to say whether thero was anything more required. Mr. James Allen: I thought-you said nothing was required. _ . Sir Joseph Ward said this would be a matter for the man who took charge of public works. He was curious to see what would be the future loan arrangements for the country.

Nothing Like it Before. The general condition of- the finances, according to the statement made, was, in his opinion, extraordinary, indicative as it was of buoyancy of the revenue, and the healthy condition that existed. They might look back on the history of the country, and he defied the oldest member of Parliament, ot anyone who had been in Parliament, to show, anything approaching tho position the Minister for i'Tnauce had just indicated, iiis indication of a surplus of -£1,081,227, based as it was upon tho revenue up to date, which more than justified it, was, he thought, a very sure sign of prosperity. But he would call the attention of tho new Minister for Finance to tho fact that lie was starting upon an excellent wicket financially. Mr. laitt said "hear, hear," ajul members laughed. ' Sir Joseph Ward went on to say that the new Prime Minister could not havo veiry much fault to find with tho previous administration.

Mr. James Allen: What were the liabilities at the end of the 31st March? Tho Hon. G. W. Russell: They have been laid on tho table.

Sir Joseph Ward said the honourable gentleman know that there woro liabilities at tho beginning of every yea.r, and they could not have t.hetn twice during the year. The balance of liabilities carried forward were paid oIT in the early part of the year, and at the end of tho year thero would be found another amount of liability which had to be carried forward b?foro it could bo paid. The financial position disclojed, Iks maintained, was a remarkably satisf?ctorr Que»

"The Opposition Laugh." t Mr. L. M. ISITT (Christchurch North) said he did not intend to pose as a financial/expert, but as his "Hear, hear" had been challenged by that refined, wellknown, ancient quantity, the Opposition laugh An lion, member: Government laugh. Mr. Witty: They are over there yet. Mr. Isitt. maintained that it was still an Opposition laugh.i His "Hear, hear" had, been drawn by the fact that that non-'party, impartial organ, the Wellington Dominion Mr. ■ Jlerdman laughed. Mr. Isitt: I am sorry, sir, that the member for; Wellington North should laugh at a paper with which I understand he is connected. Mr. Herdnian: I am laughing at you. Mr. Isitt: That non-party paper has a leading article to-day that represents this colony as being on the verge'of bankruptcy. Ho went on to complain about this cry of Conservative papers, which, ■in their party enthusiasm, were discrediting the country's finances. It was done, he thought, in order that if the incoming Ministry made a muddle of finances, as members on his side of the House fully expected they would, the Government party would bo ablo'to say' that it' 'was not their fault, but due to the condition of tilings as'they were handed over. The.House agreed that'the report be tabled and printed.

"1 believe the .country is at the end of one era, and at the dawn of another."—Hon. T. Mackenzie's opinion of the political situation, expressed during the recent Np-confidence debate, ' ' ' '