THE FINANCIAL STATEMENT.

Evening Star, Issue 2999, 28 September 1872, Page 2

THE FINANCIAL STATEMENT.

[By Elkotric Telkghaph.] [ln the following summary shillings ami pence are omitted ] The House went into Committee of Supply. The Colonial Treasurer (Hon. T. B. Gillies) made his Financial Statement. His object, he said, would bo to state clearly the financial position of the Colony, arjd the state of the several funds constituting its

public account. He would endeavour to do that, not from a sanguine nor from a despondent point of view, dealing with the figures only with a desire to render them valuable because accurate. Certainly he would not knowingly permit any feeling as to the position of parties in the House to cause him to injure the credit of the Colony or retard its real progress. The total amount of the Colonial Debt at the present time was 1,9,985,936, but there was a sura of L 576,848 of .Sinking Fund accrued. The annual charge consequent np- n the debt, and which must be provided out of the General and Provincial revenue, was L61G.895. From a carefully compiled balance-sluet of the ’Consolidated Fund account, he concluded that, on 30th January (? June) last, there was a deficit of L 33,345 on that account to be provided for, and not a surplus of L 10.562 with which to commence the current year, as was stated by his predecessor. The discrepancy, therefore, was L 43,908, He ac ounted for it thns He believed the amount recoverable from the Provinces was L 28.917, or L 5360 less than that shown in his predecessor’s Statement. He could not trent as an asset any part of the L 15,650 for which his pred- ecssor took credit as recoverable from the Confiscated Land account. The Government meant to grant a consider* able portion of those lands to the natives from whom they were taken, and the balance would not do more—if, indeed, it would do so—than meet claims and pay costa of management. His predecessor omitei from his calcu'ations L23U of interest due on 30th Jane upon temporary loan debentures, deficiency bills, tc. He also omitted a liability of L 17,585, in respect of savings on the Civil List, the Native Schools Fund, and the Armed Constabulary Reward Fund. In addition to those four sums, he (the Colonial Treasurer) had ascertained that LSOOO of additional liabilities existed up to 30th June, a great part of the amount having been paid since that date. Thus the discrepancy of L 43.908 was accounted for, and the deficiency of L 33.345 on the Consolidated Fund at the commencement of the financial year was shown to exist. Under the Defence and Other Purposes Loan Act, there had been placed up to June 30th a total of L 635.000, of which at that date there remained available for Defence services dining the current year, L 106.922. His predecessor estimated the amount available to be L 158.247 ; so that there was a discrepancy of 1,31,324 to be accounted for. Of that discrepancy, L 23.792 was accounted for by the fact slated by his predecessor, that the L 158.147 said to bo availab'e was indunivt of then existing liabilities to that amount. Therefore the sum available for the current year was reduced. Ol the remaining L27,53l of disc epmey, L 8358 was accounted for by his predecessor having taken c ed.t for that sum in the Consolidated Fund Account as recoverable for Defence, but having omitted to debit it as a liability against Defence of the amount realised under Schedule 2. L 9563 was for the redemption of Otago Dock Bonds not yet redeemed, and was therefore a liability against this fund which might have to be met any day Still further, 1,9373 of the discrepancy was accounted for by that sum, which was on account of confiscated lands from tfie Consolidated Fund, having been treated as an asset—a course which he could not follow. Add to the amount already stated L 235, which represented the charges for raising the last L 150.000 of this loan, but of which his prr* decessor was not aware, and the discrepancy of 1.51,324 was accounted fcr. There had been up to .1 une 30 raised under the Immigration and Public Works Loan Act a total of L 1,600,000, of which there remained on that day named L 845,006 in cash available for works already contracted for, or which might be contracted for. As regarded this fund but little discrepancy existed between the accounts of his predecessor and those now admitted, except that his predecessor, in stating the available balance of L 935,684, omitted to take into account L 79.250 of liabilities then existing, and that his predecessor did not include the charges on raising the last instalment of the loan, the accounts of which had not at the time been received iu the Colony. He need not detain the Committee by reference to the Trust Fund, the Land Fund, or—(?) because he believed the statements made as to them by his predecessor to be substantially correct. He would next explain the position of the several funds included under the general title of the Immigration and Public Works Loan Fund Account. The date up to which his explanations as to those funds would reach was September 10—the day ou which the present Government took office. First as to the Railways Fund. The amount authorised to be raised was L 2,000,000, to which must be added L 37,202 as representing the moiety of Stamp Duties, 1870-71, less refunds. The total amount of accounts passed for payment was L 314.363, There were liabilities amounting to L 982.347 for rails and rolling stok on railways begun or contracted for ; and there there were further liabilities amounting to L 298.168, being the estimated cost of rails ordered or contracted for on account of lines not yet begun or contracted for. Thus of the 1,2,037,202 there remained 1,451,321 in cash, and the rails last mentioned, so that on the 10th September there was available for railways not yet begun or contracted for, cash and rails representing L 740,000. The engineer’s estimate of the probable cost of tho railway authorised bat not contracted for showed’ a total of 1,2,005,110, so that, deducting the L 74 0 :000, and considering all tho facts and contingencies, it was fair to estimate that at least an additional million and a half would have to bo provided before the railways authorised by tho Assembly could be completed. But this position of affairs did not require to be dealt with at present Tho bed nee of cash on hand. (1,845,096) would enable works already contracted for to bo carried on daring the prosent year, and would also enable the Government to initiate and push forward others of the works authorised by Parliament. Tho Minister for Public Works would inform the House what those works would be, and during tho recess the Government would work with a full recollection of the fact that the policy of Railways and Public Works could not bo reversed, and that, to be a benefit to the Colony, it must be carried on vigorously, though at tho same time with prudence, judgment, and economy. Of the one million authorised to be raised for immigration, there remained on September 10th, after providing for liabilities up to 31st December next, as slat d by the Works Minister, L 868,714. Of theL3oo,ooo f„r the Goldfields Water Supply, there remained available, after providing Lol 490 for the Thames Water Race, L 231.850. The sum authorised for Roads m the North Island was L 400.000, and there remained L 225,084 available, after providing

for contracts Mid meeting liabilities «p to September 10th. On the same dale LI .to, 170 wai available out of the L2OO,(KK) for Land Purchases in the North Island. * n the Telegraph Extension Account the UO.OOi) appropriated had been overspent to the amount of Lls 383. His prcdec ssnr proposed to meet that excess, and to provide for further extensions, by allocating for those purposes L 40.000 nnapportioned of the Immigration and Public Works Loan, and the Committee would now bo asked to consent so to al'oeate, for the present, T..‘10.000 out of the 1,40,000. A very disturbing element in the calculations arose from the fact that the LIOO,OOO sot aside for Load Boards last year was ordered to be paid out of tho I üblic Works Fund, but was not d : rectcd to be charged against any one of the accounts inclnded in that fund. A decision on the point must now be conic to, and his recommendation, after very careful consideration, was that the LIOO.OOO fhonld be charged against the Immigration portion of the loan. He did not purpose to again subsidise Hoad Boards out of the loan, for he believed that the members of the Boards themselves considered that by such aids they gained a merely benefit at the cost of constant future taxation. As to the estimate of revenue and expenditure for the current year, ho shoual differ but little from his predecessor, save in a few items It was unnecessary for him to enunciate a general financial po’icy different from that of his predecessor, for the present Government were called into office on the one ground that the previous Government had failed in the administration of the policy agreed upon. His duty was to carry out the existing policy subject to sucb administrative reforms as he should indicat n The Consolidated Fund revenue had on the whole been fairly estimated by his predecessor. His predecessor had apparently not taken into account as revenue about L9OOO which would be received from surplus interest on the Trust Fund and other accounts. As he now proposed to provide out of the Consolidated Fund for interest on all the Colonial securities, including those held by the Trust Fund, it was but fair that the surplus interest on such funds should be treated as revenue ; therefore he added 1,9000 to the item Incidental Receipts, and, with the exception stated, accepting the Estimates already before the Committee, his calculations would make the estimated revenue for 1872-3 stand at L 1,085,000. As regarded expenditure—on the Consolidated Fund there were three points on which his proSosals would differ from those of his processor. First, he did not propose to continue to charge interest and sinking fund on the Immigration and Public Works Loan upon the loan itself, giving as a grant-in-aid one-half of the Stamp duties to a further contribution for the Consolidated Fund. Instead of that plan, he proposed to charge the interest and sinking fund in question directly upon the Consolidated Fund, as the law required. He would reckon on half the Stamp duties to aid in meeting the charge, first making the necessary alteration in the law ; and he would charge against the Public Works Loan, for this year only, such balance of the interest and sinking fund as the Consolidated Fund could not bear. The Cash result for this year would be much the same as that proposed by his predecessor; but it would be arrived at directly, and not in an indirect and misleading manner. Secondly, he proposed to increase the capitation allowance to the Provinces by recognising that tho Maoris were large consumers of dutiable goods, and by substituting a payment of ten shillings a head on account of them instead of giving an arbitrary allowance. Taking los per head as before for Europeans, 10s per head for Maoris, and continuing the special allowance of 2s 6d per head of European population to Westland, tho capitation payments would stand thus Auckland, L59,8fi6; Taranaki. L 4626; Wellington, 1,21,422 ; Hawke’s Bay, L 6210 ; Nelson, L 17.538 ; Marlborough, L 4222 ; Canterbury, 1.36,983 ; Westland, L 13,492 ; Otago, L 55.880. The total would be L200.24L Thirdly, he proposed to calculate upon a reduction during the remainder of the year of LIO.OOO upon the Estimates of ordinary expenditure, classes I. to Vlll., as brought down by his predecessor. There had not been time to re-cast and reprint them, and to do so would confuse the accounts of the Treasurer and the Controller. The gross estimated expenditure amounted to LI, 108,915. Deduct the L 10.00& savings to b« made, aud the (net expenditure would be L 1,098,915. There must be added the debit balance already stated of L.33,345, ] e , a L 15,222 on account of Civil List and Native School Savings which would probably not be required this year. Then there would be a total estimated expenditure of Consolidated Fund for the year of LI, 017,038, which amount included the whole interest and sinking fund on the Public Works Loan, amounting’to L 96.000. There would thus be an excess of L 32,038 of expenditure over receipts ; and he proposed, for this year only, to debit the Immigration and Public Works Fund with L 34.500 of the interest and sinking fund on that loan. The difference between the two amounts would probably he required for Supplementary Estimates, If he made the Financial Statement next year, he would altogether oppose the charging any portion of the interest and sinking fund on tho Immigration and Public Works loan to the loan itself. He would prefer to see (?), and to propose, if necessary, hereafter to augment the revenue by a change in the incidence of taxation, rather than the Colony should be deceived by the idea that it was getting public works for borrowed money, while that money was merely being spent in paying interest upon the loans themselves. Ho believed that reductions amounting to L 25.000 a year could bo made the Estimates, and the Committee might fairly complain if ho brought down Estimates next year without effecting such reductions. He recognised the important reforms instituted in the Treasury Department by bis predecessor, and he hoped during the recess, freed from other cares of any other office, to devote himself to reducing those intended reforms to a practical shape, such as would be beneficial alike to the department and to tho public.

Seventeen thousand emigrants sailed from Liverpool for America in July. There is same excitement in Ireland over reported gold discoveries. The South Shields collier, “ The Brotherly Love,” in which the great circumnavigator Cook served his apprenticeship, still sails from the Tyne, and is likely to last for some years to come. She must be at least 150 years old. (For conu.rmiion of Ntv:s see fourthpaye.)