THE GENERAL ASSEMBLY

Evening Star, Issue 2966, 21 August 1872, Page 2

THE GENERAL ASSEMBLY

[By Electric Telegraph.]

August 20. PUBLIC WORKS STATEMENT.

Mr Ormond delivered his Public Works Statement to-day. After reminding the House that the Ministry had really only had seven months to carry out their policy in, he reviewed in detail all the works which had been executed. With regareffto Mr BrogdeVs contracts he stated that the Parliamentary estimate had in all cases been exceeded, owing to the rise in the price of material, but all the contracts had been entered into after careful consideration, and after taking the best professional advice. Complete, with rolling stock, &c., the average cost of the lines would only ho L 4565 per mile. The total amount which had been placed to the credit of the Public Works Account since the initiation of the policy was L 801,023, of which only 1ff50,000 was from the Loan, the balance being chiefly from the Stamp ntios. This sum had bemr reduced by'charges and discount i >30,272; by interest aiid sinking fund, 1>33,050 ; by buildings and English agency, L 8 042 ; leaving only Iff 19,957 available for public works. Of this L121.8G8 had been spent in making roads in the hj orth Island, for which sum 550 miles of road had been opened, there beiug besides 200 miles in progress, L 32,380 of the Middle Island railway fund have been spent in opening 27 miles of roads, and 42 miles more were in progress on the West Coast goldfields. On railways, L 212,237 had been expended, for which they had to show 12 miles of railway open, at a cost of about L 49,200 ; 386 miles surveyed and prepared for contra it at a cost of L 19,212, of which 254 miles were contracted for, an>l upwards of 50 in course of construction, and on which about L 103.338 had been already paid, and L 40.537 paid for railway plant and the Waitaki bridge, making a total of L 212,287. In the North Island L59.G64 had b on spent in purchasing 403,815 acres of Native land, besides providing advances on blocks still under negotiation, SOI miles of telegraph had been opened, at a coat of L 58,297. Of the Road Boards grant, L 45,400 had, under the resolution of last session, been given to the Provinces, and '> 54,000 direct to Road Boards, the whole of which had no doubt been spent on objects identified with the policy of public works. 1.46,650 was spent on immigration, and L 21.000 of this was refunded to the Provinces. Positive instructions bad been sent to Dr Featherston to maintain the Scotch Immigration agency established by the Otago Government, and to ship Scotch emigrants from the Clyde instead of from London; also, to break tbe existing monopoly in regard to freight and passage which had for years pressed so heavily upon the Colony. The Greymouth protective works, goldfields water supply, development of coal mines, and refund of stamp duties, absorbed L 6511. The departmental expenses, including Iff 184 for salaries aud expenses of engineers employed on the various lines of railway aud roads throughout the Colony, amounted to L 16.610, making tbe total expenditure incurred in carrying out the policy 1.644,273, leaving a balance in hand on the 30tn June last of L73.G54. The Government did not intend to propose the initiation of any new works of magnitude during the present year. Those already sanctioned were as large works as could prudently be undertaken under the circumstances, an I the Government desired to devote their attention to carrying them outeffectually aud economically. Daily Times.

FINANCIAL STATEMENT. The following is the official summary of the statement, in which, we are informed, amounts of money are, for convenience, generally stated in round numbers : Mr Vogel commenced by remarking that he had a more agreeable task than that which devolved upon him last year, for he had not now to speak of deficiencies or of impaired revenue. When, last session, be reviewed the results of the year 1870-71, he led the Committee to understand that, on the close of the accounts for that year, there would he a i : deficiency of L 76.912, together with L 60,000 of overdraft, making a total anticipated deficiency of L 136,000. He was glad to say that the deficiency proved to be only L 122.000, or LIS,OOO less than was anticipated, that reduction being mainly owing to savings in connection with the Reserve Fund. The House authorised the issue of Treasury Bills for L-15,000, at one year’s date, and a like amount at two years’ date, partially to cover the deficiency; the balance to come out of current revenue. It would be found that the current revenue of the past year had performed its part of the bargain, and provision would be made this year out of the revenue to meet the L 45.000 increasing bills due this year. With respect to Loans, LOG,OOO under the Wellington Debts Act had been negotiated in Sydney at a clear net premium of two per cent. He believed that that was the highest amount ever obtained by public negotiation for any of the Colonies’ debentures unguaranteed by the Imperial Government Of the Immigration and Public Works Loan L 850,000 had been negotiated, and of the Defence and Other Purposes Loan LI 50,000, making together one million. That amount had been negotiated at home at a premium of 4s 2d, after deducting accrued interest, which must be considered a very favorable negotiation. Inclusive of the L 150,000 recently negotiated there had been raised under the Defence and Other Purposes Loan LG35,000, of which there was charged under the second schedule of the Act—to Auckland, L.50,000 ; to Taranaki, LGOOO; to Wellington, L 17,000; and to Otago, LOO, 000. By turning to the second schedule of the Act, honorable members would at once see the nature of the various payments under it. The total under this schedule was L 163,436. Under schedule 1, there had been expended L 295.558, together with L 18.327 for discount and charges, making together a total of L 471,352, and leaving a balance of L 158.000 available for expenditure. Of this L 158.000, 1.150,000 was in cash in London, L3OO in cash in the Colony, and L7OOO under advance in the Colony. Of the Immigration and Public Works Loan, there had been altogether L 1,600,000 raised. Adding to that sum L 27,204, being a moiety of the Stamp Duties, the total was L 1,637,294. Of that sum L 711,611 was expended up to the 30th June last, leaving a balance of L 925.684, of which L 850.000 was in London on the 30th June, L 40.606 was in the Colony in cash, and L 35,017 was under advance. The items of expenditure under

the Immigration and Public Works Loan were!—lnterest and Sinking Fund, 1-209,000; Depaitmental Expenses, L 24.000 ; JRoada in the North Island, L 120,000 ; Railways, L 241,000; Water Supply, L2OOO ; Purchase of Land in the North Island, L 49.000 ; Immigration, L 42.000 ; Telegraph, 1.58,000 ; Coal Mines, LSOO ; Payments to Road Boards and Provinces, 1.100,000; Greymouth Protective Works, L3OOO ; Discount and

Charges, L 39,000. Before concluding his remarks concerning the Loans, he wished honorable members to understand that provision was made for payment, during the year, of L 66.000 sinking fund on Colonial Loans, and L 40.000 on Provincial Loans. Those payments represented the sum which the Colony and the ! rovincos provided for reducing the public debt, Ou the 30th dune last there was L 440.000 in the Trust Fund, of which L.387,000 was invested, and L 50.000 was in cash. On the 30th June, 1871, the amount in the Trust Fund, was L 343.000 so that it had increased during the year by LOO.OOO. The Post Office Savings Bank Fund had increased from L 294,000 in 1871, to 1-305,000 m 1872. These accounts, it should be clearly understood, were kept entirely distinct from ordinary revenue and ordinary payments, and he had taken the strictest precautions to secure that inten st bearing acounts were sufficiently covered for all accrued interest. He would next speak of tbe revenue of the year 1871-72 The actuvl revenue of the year was L 1,007,000. against L 999,000 estimated, and L936,0U0, the actual receipts of the previous year. There was therefore an inenase of Iffl.OOO over the actual receipts of 1870-1, and of L 17,000 over the estimates. The Customs Revenue showed an increase of L25,0000u the estimate, and of i 42.000 over the amount actually received during the previous year. The exports during the year had exceeded those of the previous year by LI, 180,000, and the imports showed an increase of L 427.000. Amongt the exports, gold increased L 135.000 over the previous year, and wool showed a considerable incrose, both in quantity and in value. The Stamp Duties had yielded LSOOO less than was estimated, but on the Postal Revenue there was an increase of 1.2000 over the estimate, and the receipts of the Telegraph Department showed a small increase, the total revenue of the year being L 1,007,000. There were to be added on account of credit to votes, L 2,00 ; Treasury bill? LOO, 000 ; Deficiency Bills, LIOO.OOO ; making the total receipts of the year LI, 199,000. Still in addition there w'ere assets amounting to L62,0i)0, so that with receipts and assets the total for the year amounted to L 1,261,000. The year’s increase as regarded revenue, and the events of the year as a whole, showed a revival of prosperity in the Colony—gold-mining was improving, wool increasing in value, the land revenue had been largely increased, building was going on all over the Colony, not only as regarded dwelling houses, but as regarded erections for business and manufacturing purposes, and generally much more attention was being given to manufactures of various kinds. With respect to agriculture, he was under the impression that the State did not know as much of what was really being done, or give to it the assistance that ought to be given. During the five years ending 1871 there had been a continuous increase in the value, as per head of the population, of the agricultural produce exported from the Colony. The expenditure during the past year for Colonial charge? was, according to the Appropriations, L 565,000. The Supplementary expenditure upon Colonial Account amounted to L 55,000; Capitation Allowance to Provinces, to L 200.000; excess of Payment to Provinces, to L 31,030; Deficiency bills, paid off. to L6U,000 ; liabilities from 1870-71, to |L62,000; payment to special fund on account of a liability of previous year, to L 20,000; half amount of Stamp Duties paid to Immigration and Public Works Account, to L 37,000. These sums make a total of L 1,014,000. There were still due liabilities on account of interest due in Sydney on the Ist July, md interest and sinking fund payable in London up to 15th July, amounting to L 109,000; Reserve Fund, L 14,000; Miscellaneous, L 13.000 ; aud Deficiency bills, LIOO,OOO. Adding all these items together there was a total of L 1,250,000 of expenditure, which, deducted from the total amount of the revenue, left a balance of LIO,OOO with which to commence 1872-73. Stating the matter in another way, the figures stood thus : Assets L 247.000, against liabilities to the amount of L23G.000, thus leaving the same balance of rather more than LIO,OOO with which to commence the year. It was to be. observed that the full amount authorised to be issued as Leficieucy Bills - namely, 1100,000—had been issued ; but the greater portion of the amount did not bear interest, being merely a nominal overdraft at the Bank. L40,i)00 of the amount had been taken by the Trust Fund. Some objection was stated last year to allowing the Government to issue LIOO,OOO of Deficiency Bills, hut in reality it was of no assistance to the revenue. The greater portion of it was represented by advances outstanding from the Consolidated Fund. The full amount was more than represented in the assets. Honorable members would understand that after paying the Deficiency Bills, after providing for the expenditure unauthorised of last year, after providing for the full expenditure of the year, after providing for the Reserve Fund, aud for all the liabilities and engagements known to the Treasury—after having, in fact, provided for interest and sinking fund due in London up to the 15th of July, or fifteen days beyond the close of the financial year, there still remains a balance of L 10.500 with which to commence the year 1872-3. The Treasurer next described the proposed changes in the system of keeping the public accounts according to the plan which would be submitted. The Controller-General aud the Auditor-General would be associated together as Commissioners of Audit, and the Paymaster-General's account would be abolished. The new system had already been initiated to some extent. Although it would impose upon the Treasury an amount of check to which it had not hitherto been subjected, the Department would learn to accustom itself to that check. The new system would answer the double purpose of securing the full authority of Parliament over the expenditure, and of enabling accounts to be made up more promptly than hitherto. He had prepared some interesting statistics, comparing New Zealand with other countries. Taking the yen' 1869, which was the latest for which returns could be found, it appeared that the revenue of the United Kingdom was LG5,090,000, of which less than L 24,000,000 were obtained under the Customs, and L 20,000,030 the amount of the Excise, as represented by the duties on spirits, During the same year, the total amount collected by tbe Provinces was

L 902,000. If there were the same taxation in New Zealand as existed in Great Britain, although the English Customs Tariff would not of itself yield so much as that of the Colony, the total revenue would be much larger than it was at present. Stamp duties in the United Kingdom represented six shillings per head of the population, or nearly fifty per cent, more than in New Zealand, A comparison of the quantities of high dutied goods consumed in New Zealand and the UuitedKingdom showed conclusively the wealthier comparative condition of the Colony. Of spirits there was consumed in the United Kingdom per head of the population per year under one gallon, but in New Zealand the average was 21 gallons. Tobacco I'oib per head in the United Kingdom ; in New Zealand, 2 - 61bs per head. Wine, *5 gallon per head in Great Britain, against "6 gallon in New Zealand. Tea, o 41bs in the United Kingdom, against 7Tibs in New Zealand. Coffee, a little under lib per head j in the United Kingdom, as against a little ! over 21bs per head in New Zealand. Sugar, I 46Ibs per head in the United Kingdom, j against 67ibs iu New Zealand. The English i tariff would have yielded in New Zealand j £643,000, as against £82.3,000 actually ob- ■ tained here fur Customs duties, but if the j other taxation bore the same proportion to j the Customs duties here as in the United i Kingdom, the total revenue of New Zealand j would have b*en £1,200,000 in 1869, as j against £894,000 actually received during ; that year. But. besides, the local taxation 'in the United Kingdom amounted to. over | 50 per cent, of the general taxation ; while ! in New Zealand the local taxation was very | much less. The secret of the apparent heavy I taxation in this Colony was to be found in j the fact chat the rate per bead of the j value of imports and exports was coni siderably higher than it was in the j United Kingdom during 1869. Tiie value j of imports into the United Kingdom i represented £9 14s 4d per head of the population, and the exports represented a value of £7 16s per head, but in I New Zealand, during the same year, the j imports represented LIS 4s per head, and the j exports Lls 9s per head. Honorable members would recollect that our imports represented not merely consumable or perishable goods, but articles of lasting value, and means of increasing wealth. During the five years ending 1871, the total value of our exwas L 24,000,000, of which L 5,650,000 was the value of non-consumable articles, so that to that amount articles of permanent value and means of increasing wealth were added to the Colony. By another return, it app a ed that for the year ending April Ist, U72, the value of imports into Great Bri- ! tain, less the value of re exports, represented L 8 3s per heal of the population ; whilst in New Zealand, dating the same year and under the same conditions, the imports represented Lls 6s per head. The British produce and manufactures exported from the United Kingdom represented a value equal to L 6 6s per head; but the valuo of New Zealand produce, exported from the Colony, represented LI7 16s per head, During the same year the Post Office revenue in the | United Kingdom was equal to 2s lid per | head of the population, as against 3s 4d per j head in New Zealand; and the Telegraph ro j venue amounted to per head in the former ! case and Is 9d in the latter. The population j of England and Wales in 1861 showed a pro* | portion of males between the ages of 16 and : 65 equal to 28 per cent, whilst in New j Zealand in 1871 the proportion between ! those ages was 37 per cent. Turning 1 to the neighbouring Colonies, it appeared j that the per centage of persons be--1 tween the ages of 21 and 40 was 38 percent., I as against 29 per cent, each in New South I Wales and Victoria, The increase of popuj latum during the ten years ending 1871, was, j iu New Zealand, equal to 165 per cent, as j against 46 per cent, iu New South Wales, and 36 per cent, in Victoria. During the same ten years the increase in the population j between the ages of 21 and 40 was 162 per cent, in New Zealand, and 38 per cent, in New South Wales, while in Victoria there was actually a decrease of 10 per cent. A comparison of the exports and imports showed most favorably for New Zealand, Leaving on one side imports and the value of re exports, the result was—Victoria, Ll4 4a per head; New South Wales, Ll2 9s per head ; New Zealand, L2I 16s per head, or, if the Native population were included, LlB 4s per head. Taking exports, the figures were :—Victoria, Ll4 10s per head; New South Wales, Ll2 16s per head; New Zealand, LI9 2s per head, or, including the Native population, LI6 8s per head. If the principal products of the Colonies were considered, the result would be more strikingly favorable to New Zealand, Thus, upon the average of the five years ending 1871, New Zealand exported gold to the amount of LlO 8s per head per annum of the population, against L 7 19s in the case of Victoria, and 10s iu that of New South Wales. For the same period, New Zealand’s average export of wool was equivalent to L 6 9s per head, aa against L 5 7s for Victoria, and L4l9s for New South Wales. The exports of agricultural produce and timber from New Zealand for the same period wero equal to 13s per head of the population per year. From Victoria those exports averaged only 3s 4d per head, and from New South Wales 10s 6d per head. A further sum must be added in the case of this Colony for flax, the export of which, including the Native population, was equal to 4s 11 d per head. Much had been said and written respecting New Zealand s oppressive Customs tariff; but if the Victorian rates, including ad valorem duties, had existed, and if the values were entered the same as at present, we should have raised as Customs revenue during 1871 L 781.000 against L 731,000, which we actually raised. That disposed of the allegation as to the higher rate of taxation in New Zealand as compared with Victoria. It was to be borne in mind that the Native question had cost New Zealand five millions sterling in the shape of expenditure—more than would be required m a Colony situated like Victoria—and that fact showed how great the resources of this Colony really were. It was alleged that the cost of Government here was heavy. Of course the rate per head of that cost was large, because the population was small. It was especially to be remembered that here the smallest aggregation of population asked tor and expected to receive all the conveniences which in older countries were only expected by large communities. Still the comparison of the departmentalcost of Government was favorable to New Zealand. Taking the financial year 1871-2, the Colonial expenditure in New Zealand, exclusive of interest and siukingfund, amounted to £594,000. The expenditure of the several Provincial Governments, for Civil Service purposes, including Education, Police, Gaols, Harbour, and Miscellaneous, but excluding Public Works, was £251,000. Together, those sujijs made a tptal of £846,000, agaijjst

expenditure in Victoria for like purposes of £1,415,000. Turning to the proposed expenditure for 1872-3, the total amount on the Estimates was £933 830, slmwmg an increase of £21.000 on the appropm ions for 1871 9 That increase was principallyrepieDented by too«M» such as LSOOO for interest on LOO,OOO of IreaBiirv Bills and LILOOO interest for Defence and other purposes Loan. Other items going towards the increase were the additional amount for Members’ Expenses, Cost of Buildings now become a Colonial charge, and the expenditure on account of theManuk an Lighthouse. Therewas also an increase in the expenditure of some of the departments, such as the Telegraph and the Band Kegis try. Honorable members in looking through the Estimates, must decide for themselves what they would consider as reductions arising from there not being a necessity to continue certain services or offices. • o the expenditure set down in tbe Estimates, there must be added L 205,000 for up. tation allowance, as against L 200,000 last year; Moiety of Stamp Duties l.ecciptsto be paid to Immigration and[ Public Wks Fund, 1.40,000 ; Treasury bdls failing due during the year, 145.000, being the second instalment of the deficiency stated last year and leaving only L 45.000 to be chared otf next year, i here must also be added a sum nf L2l 000, wbicb it was proposed to pay to Immigration and Public Works Fuml.'iu addition to one-half of the Stamp Duties which had been paid over to that account, the L2l 000 being calculated to represent fairly the amout of interest and sinking fund on the payments nude for works completed, and on final payments. This wouldI make a total expenditure of L 1,000,000. It should be remembered that tbe capitation allowance to Provinces represented LBOOO more than was paid last year. It was proposed also to relieve tbe Provinces from payment of LI9OO a year for salaries of Provincial Auditor, and L 23.000 a year, the cost of inland mail carriage. These together would represent a payment of L 32.000 out of the Consolidated Revenue to and on account of the Provinces more than was paid last near It was not proposed to continue the extraordinary aid of I 50,000 which was last year granted to the Provinces in consideration of its being alleged that there were engagements to meet which required that amount; but L 50.000, being the same as last year, would again be paid to •■oad Boards The estimated total revenue of the year was L 1,076 ,000. The principal items —Customs, i 820.000; Stamps, LSO 000; Postal. L 50.000 ; Telegraph, L 33,000 ; Judicial Foes and Fines, L 32.000. Tt was estimated that the Stamps would this year yield LBO 000, although several remissions would be proposed, namely, the annual license fee on companies for the promotion of industries and colonisation, such as meat preserving companies, saw mill companies, steamboat companies, tramway companies, immigration companies, public hall companies, and fishing companies It would also be proposed to remit the ‘ tamp Duty upon Cheques of Friendly Societies, and upon receipts given to them for moneys disbuised by them, and to remit the duty on all conveyances of laud in trust for religious, charitable, and educational purposes. Tt would also be proposed that the stamp on receipts should be reduced to one hjmny. The postal revenue was estimated at L3OOO more than last year, notwithstanding the contemplated reduction of the postage on newspapers to one halfpenny. ho many newspapers wore now scut by coach which would no doubt bo sent through the post under the reduced rate, that it was not consideicd the reduction would diminish the revenue of the Department. The total estimated revenue, then, was L 1,076,000, or an increase of L 86,000 on the estimated, and of LbSdWO on the actual, receipts last year. Adding L 10.500, the amount of the surplus with which the year was commenced, there Was a total of L 1,086,000 ; ami deducting the total proposed expenditure, 1if060,000, there would remain 1/25,000 surplus upon the year. A portion of that surplus would be required to meet Supplementary Estimates and unauthorised expenditure. It must also be remembered that when the Estimates were commenced, the report of the iStlect Committee on Public Buildings had not been received, which report contained a recommendation that a considerable sum should be expended on the repair of buildings. Provision for that expenditure was of course not included iu the Estimates. On the other hand, there would certainly be duritm tbe year savings 011 votes, and lie was inclined to think that, if the House should desire that a further payment should be made in aid of the Immigration and Public Works account, such payment could be made out of the surplus. In conclusion, be thought he need not apologise for the paucity of nov el features and new proposals in the Budget. After the changes during the last three years it was gratjfyiug to be able now to dispense with further large alterations. This was the fourth consecutive session in which he had made the Financial Htateracnt. When be considered the period covered by those Statements, he could not but congratulate the Committee upon the present improved condition of affairs of the Colony. He hoped that he had avoided creating in the minds of the Committee anything like an impression that the Government took credit not belonging to them. The great revival of prosperity in the Colony was due to a power higher than that of kings or people. ’ All that the Go vernznent claimed was that when there was a disposition to despondency, they set themgelves to do that which seemed beat calculated to restore confidence, and they called upon the people not to be discouraged, but to arm themselves to contend with their difficulties, and to hope for a origbter future. That that future has shown itself in such bright colors was due to a power beyond ail Governments. ilm Ireasuicr concluded by moving a resolution that it was expedient to reduce the Stamp Duty on receipts to one penny. Tim resolution was agreed to by the Committee, was reported to the House and adopted. The House then adjourned. The delivery of the Statement occupied two hours and a quarter,