PROVINCIAL COUNCIL.

Evening Star, Issue 2885, 18 May 1872, Page 2

PROVINCIAL COUNCIL.

Yesterday. On the House resuming at seven o’clock, the Provincial Treasurer moved it into Committee of -Supply, t© enable him to make the usual FINANCIAL STATEMENT. Mr Reid premised by observing that, notwithstanding the withdrawal by the Colony of a portion of the revenues, such as stamp and other duties, from Provinces, the Provincial receipts contrasted favorably with those of former years, affording a gratifying proof of the elasticity and stability of our resources. When the estimates of last year were under consideration, a deficiency of L 97.578 18s 9d had to be provided for; and with a view to reducing it, and relieving the Province from the charge of interest thereon, the Council authorised the Government to sell (on exceptional terms) one or more blocks of land. In compliance with the desire of the Council, a sale of one block, of 44,005 acres bad bpen effected, and it would be gratifying to the Committee to know that, in disposing of so large an extent of land for revenue purposes, only a very limited area fitted for agricultural settlement had been alienated.—-(Hear.) If was his pleasing duty to inform the Committee that, after providing for the expenditure necessary for carrying on the affairs of the Province, its liabilities had been reduced during the year by L 52.920 8s 9d, and this had been effected in the face of a considerable reduction in the sums contributed to the Province from the consolidated revenue—reductions that were not anticipated when the Statement of last year was under consideration. It was impossible for a Treasurer in framing his estimates to determine, with any degree of certainty, to what extent they would be realised or how far the action of the Colonial Legislature might interfere to inspect his calculations. This had been brought very forcibly under notice during the past year by the repeal of the “Payment to Provinces Act, 1870,” and the replacement of it by the “ Payment to Provinces Act, 1871.” The latter, if not re enacted at the next meeting of Assembly, would expire on the Ist July next, leaving it exceedingly doubtful what our future finauoial position would be, or what aid wp might expect to obtain from the consolidated revenue. With that uncertainty before them, it was worthy of consideration whether it would not be better to hold their annual meetings after the meeting of Assembly.—(Hear). Such a course would be attended by this advantage —the Council would then be in a position to estimate with accuracy the sums which would be receivable from the consolidated revenue during the year. In view' then of all the circumstances, he thought it was extremely probable that it would be found necessary to call the Council together immediately after the next session of the Assembly, In order to show clearly the extent to which the new “ Payment to Provinces Act ” affected our revenues, he had had prepared a statement showing the sums received from the consolidated revenue during the last five years, and also the sums receivable under the present Act. That statement had been prepared, shew'ing the results under the General Government accounts, and the results under the Provincial Government accounts. There was some little discrepancy between the two statements, but that might be explained to be owing to the fact that our financial years were not co-terminous. If they took it under the General Government statement of accounts, they found that in 1867-8 there was returned to the Province, after paying all charges, the sum of L 51,359 12s lid; in IS6B-9, L5<,340 2s lOd ; m 1869-70, L 56.198 13s lid; in 1870-1, L 33,703 18s id; and L 14,000 to Road Boards—making a total of L 57.703 18s Id ; and during last year there was returned from the Consolidated Revenue L 13.733 Is Bd, shewing that there had been a gradual reduction in the sums annually contributed to the Province from the Consolidated Revenue—that whereas we received in 1867-8 the large sum of L 51,359 12s lid, the sum had been gradually reduced until, during the last year, wc received only L 13,733 Is 8d ; and the probability was, that if there was no provision for granting a subsidy to the Road Boards during the next year, if there was no allowance to the Province beyond the capitation grant of 15s, that instead of receiving any contribution

from the Consolidated Revenue, the Province would have to pay a sum of LI 5,000 or L 20.000 during the year from the Provincial revenues. After explaining the balancesheet, the Treasurer turned to the revenue of last year. With the exception of the estimated receipts under the Payment to Provinces Act, which had not been realised, the receipts on almost every other item of importance had exceeded the estimates. The only item of importance which has uot come up to expectation was under the head of Railways. The receipts from that source was L 6656 18s 4d, as against an estimated revenue of L1’2,000 The result proved that this was too sanguine an estimate. There was no reason to conclude, however, that the traffic on the line was not increasing. On the contrary, the official returns showed that the passenger and goods traffic was steadily and largely increasing. Indeed, the revenue of the last compared favorably with that of the preceding year, although there was a considerable reduction made in the tariff of charges during the year; and there could be no doubt that the revenue from this source would be largely increased during the next year. In confirmation of that, he read a return of the revenue received from the line during the month of April last, and the cost of the

working charges. The total revenue during the month of April was LI 316 7s 3d ; total working expenses, L 492 10s 8d ; while the revenue for the corresponding month last year was L 554 12s 7d ; working expenses, L 431 12s, These figures justified them in expecting that a large increase would take place in the receipts from this railway during the next year. There was also a defioiciency under the head Assessment on Stock. This, however, was more apparent than real. It was owing to a large sum having been carried to the account under the the bead of School Fees and Rents. Honorable members would recollect that the honorable member for Oamaru, during last session, placed a motion before the Council to the effect that the revenues accruing from the pastoral lands reserved for educational purposes should be carried to a separate account. In compliance with that resolution, those revenues had been carried to a separate account, thus causing an apparent deficiency under this item. Under the head of School Fees, Rents, &c., as against an estimated revenue, L4OOO, there were receipts amounting to LII,SS6 7s fid, showing an excess over the estimate of L7BS6 7s fid. This explained the apparent deficiency under the hea tof Assessment on Stock. The purely Provincial revenues had, in every instance of i nportance, been realised, and in many cases been exceeded. With the exception of the estimates under the Payments to Provinces Act, which were very much below the amount estimated, on what might be termed purely Provincial revenue, the excesses were:—On Crown lands, L 15,927 5s 7d ; goldfie'ds revenue, L 1709 Is 9d; gold export duty. L 2107 3s lid ; tolls on roads, LI 122 8s 7d. Tbta2 figures afforded a gratifying proof that the general prosperity of the Province had not been at a standstill during the past year, but, on tbe contrary, had been steadily increasing.—(Hear, hear). Then followed a compareei of the revenue for 1870 1 and 1871-2, and the expenditure of the latter year, and the Treasurer proceeded to consider the future position and prospects of the Province. The fact that our contributions from the Consolidated Revenue have been largely reduced—that the subsidy to Road Boards might not be continued—that there was a diminished revenue from which Provincial services must, be maintained—institutions the maintenance of which was indispensable, while with the progress of settlement and the increase of population, their requirements, the for their extension, and consequently their cost, was being daily increased, and the revenue not increasing to a corresponding ex-tent-forced upon tbe Council the necessity of exercising the most rigid economy in the appropriations for the current year, and also forced upon their attention the propriety of making careful enquiry with a view to ascertaining how far it might be practicable to transfer to the local administration of the respective districts—from time to time, as the circumstances of the Province and the growth of a healthy public opinion seemed to wai rant—some of those matters which were at present administered by the Province. A Bill would be introduced to empower school committees to levy rates for educational purposes. It was to be distinctly understood that it was not intended by the Bill to reduce the existing school fees, nor to relieve the Government of the payment of any portion of the stipend at present paid to teachers, but to enable tbe committees to levy rates in order to supplement the school fees in small districts, apd to provide for repairs to buildings, &c. Advantage wight also he taken ot its machinery to raise money for the erection of new buildings ; while, in view of the heavy demands made on the Government for new buildings, it became a ;stion whether it ought not to be laid down as a rule in all cases where additional school buildings were required in districts where schools had once been established, that a moiety of the cost should be borne by the district. The Government intended forthwith to bring into operation the Roads Ordinance, 1871, the elections under which would take place in the months of June or July next, and when the new Boards were fairly in operation the Government would be enabled to make further reductions in its departmental staff. In thus making provisions for gradually divesting the Council of, and making over to, local representative governing bodies those revenues which were raised, and which could be most efficiently and economically administered locally, he thought they were pursuing a wise course, one which was calculated to beget an interest in the management of local affairs, which would create a public spirit, and which would be the means of organising a system of municipal and local administration, which could not fail ultimately to secure most satisfactory results, which would form a barrier against the absorption of administrative functions by a central Government, and prevent that confusion and disorder which would ensue, in the event of any change of the Provincial form of government before other local governing bodies were established. Referring to the Government’s proposal to endow permanently the various municipalities, he uctic, d the objection made that the proposal was entirely in favor of Dunedin, and observed that any objection raised against Dunedin having its share would defeat the whole principle that was involved in districts expending their own local rates. The following talkie showed the sums which would accure to each municipality from these fees, and also the sums expended on main roads in each district during the past year

6561 10 1071 0 5490 10 It would be admitted that this was a year of jubilee for municipalities. In addition to the above Avas the dog tax, which would not very materially add to the amount, although it wouldincrease it by some L6OO or L7OO. If these sums are secured to the Municipalities, it would not only enable them to maintain the main road within their boundaries, but to eff ct souje very useful works which at present are either partially or entirely neglected. Probably those bodies would be enabled, with the sums which would thus accrue, to carry out many of those matters, for which at present they looked to the Provincial Council for grants. The Government proposed to ask the Council to agree to a resolution to offer L 1,500 as a bonus for the introduction of a paper manufactory-(Hear) this sum to bo in addition to a sum of L 2500 offered by the Government. Proceeding to explain the proposed expenditure for the year, he said that it included a sum of L 23.000 arrears due to the General Government —items that could not be disputed—which would have to be made good during the year. The total expenditure for >he year would be 1,281,332 11s 9d; on worksfor which payments would be made in land, L 33,755, making a total of L 315,087 10s 9d. Last year the approbations amounted to L 280.658 6s 9J. aud during the preceding year to L 458,612 12s 2d. There was a saving on departmental expenditure, as compared with last year, of L 7381 18s 4d, and an exces < in other items of L 2413 9s 6d. The excess was under the head of Harbor, Lunatic Asylum, Industrial School, Collection of Tolls, and 1" ail ways—items on which, it would be admitted, no saving could be effected, while the items on which savings had been effected were strictly departmental. The items of estimated revenue explained were dog and goat tax, sales of reclaimed land. As to the former, there was some doubt as to whether the Ordinance might not be ruled rule vires , aud the Government proposed to place those sums in the estimates of revenue and expenditure, and in the event of the Ordinance being questioned, the sums would be paid over to the respective municipalities during the present year. It was expected this year to realise LIO,OOO from the Sale of reclaimed land. The Government was proceeding with the reclamation of some of this land, and the prospect of the establishment of the Port Chalmers railway station was likely to very materially enhance the value of the land. There was also the further consideration that the General Government wished to procure a site that had been reclaimed, at great expense to the Province, as the terminus for the Clutha Railway; and the Government thought it was only reasonable, seeing that the railway would he constructed from loan, that the Province should be recouped for the expenditure incurred—{hear, hear)—and receive some revenue from this land which it was fully entitled to. If not purchased by the General Government for railway purposes, it was intended to offer it for sale, and it would realise a large sum if now placed in the market. The Government proposed to ask the Council to agree to a resolution to open for sale, at 10s per acre, the unsold lauds in Hundreds which have been in the market for seven years. The Hundreds were now Kakanui, containing 17,500 acres unsold ; Awamoko, 343S ; Marewhenua, -1134 ; Gatlins, 54,992 ; Waikawa, 9143 ; Tois Tois, 55,000; Mokoreta, 19,-124 ; Tuturau, 20,515; total, 184,146. He thought it would be admitted that the Statement was as satisfactory as could have been expected when they considered the large drain on our resources to provide for the permanent charges of the Colony. When they reflected that this Province, with a population of some 69,000 sou's, contributed a sum equal to L2 10s 9d per head of the population, {he equse for wonder was not that they had Ho little, but that so much could be made available for our local requirements.

£1 u >> d . > Licenses received 187 c m »r* Expended Main iloai a c o a ’•5 's 1 £ s. £ s. £ s. Dunedin 3128 0 538 0 2590 0 Hawkesbury 80 0 70 0 10 0 Palmerston ... 100 0 72 0 28 0 Oamaru 461 0 127 0 334 0 Balclutha ... 140 10 9 0 131 10 Lawrence ... 271 10 12 0 259 10 Invercargill ... 766 10 40 0 726 10 I’iverton 170 0 20 0 150 0 Clyde Cromwell 295 0 30 0 265 0 230 0 20 0 210 0 Queenstown... 265 10 30 0 235 10 Alexandra ... 250 10 25 0 225 10 Port Chalmers 166 10 30 0 136 10 Milton 236 10 48 0 188 10