FINANCIAL STATEMENT.

Evening Star, Issue 4167, 5 July 1876, Page 2

FINANCIAL STATEMENT.

The following is the Financial Statement delivered by Sir Julius Vogel in the House of Representatives last-evening : The Colonial Treasurer commenced hy complimenting Ma jor Atkinson on the Statement by him last session The singularly clear and lUcid explanations theil given left no information unsupplied. He would now continue the scheme of the Budget, which, as the Committee would recognise, Wits to simplify all financial arrangements, and to place them on the most intelligible footing. The Government did not consider the ques tiott of Abolition as undecided. They regarded it as, beyond all doubt, settled that the Provinces should cease to exist. They recognised that Abolition would impose upon the Government many difficulties, and to meet those difficulties they &sk the aid of the Legislature by passing such measures as would be necessary to give effect to the legislation of last session. The Financial Statement was a necessary prelude to the business of this session, and, in order to avoid delay, he had not waited for the complete returns of the year’s transactions. The figures that would be put before the Committee would therefore involve results that were partly estimated, but the totals might be relied upon as sufficiently near to what they would virtually prove to be relied upon for all present purposes of discussion and consideration, As soon as possible the actual figures and the usual tables would be laid before the House. As to current loans the Treasurer said:—“ Honorable members were informed last year that it was proposed to dispose of the unsold balance of various loans excepting the guaranteed debentures, which are used as a convenient reserve fund. In pursuance of this determination, the Agent-General and Crown Agents jointly were authorised to sell some L 1,250,000 tm. guaranteed debentures under various Acts. They reported a sale to be impracticable at previous rates, and instructions were then given to them to effect a temporary loan on the securities. They are now negotiating for a twelve months* loan of a million, on short dated debentures, and we are led to believe the transaction will be completed on the receipt of the advice that the necessary authority has been issued on this side. It would probably have been completed before but for the interruption of the Cable communication. The expenditure out of the Public Works Account had during the year been L 900,000 less than was authorised. When the difficulty in negotiating the balance of t e loans became apparent, the Minister for Public Works was asked by the Government to retard for a time the operations of his department, and the only substantial excess in any item of expenditure for the year under the Act mentioned had been for Native land purchases, a quite inadequate vote having been taken for that service. Taking into account the guaranteed debentures, the remaining balances of unguaranteed debentures, the repayments of all advances to the Provinces, and of those to water-race companies, there would be left out of the amounts authorised out of the public works account LI,4(K),000 to be expended. Of the defence loan, there was propably L 40,000 available for expenditure.” Respecting the total public debt of New Zealand, including Treasary bills, the hon. gentleman said;-“ The gross public debt of the Colony, when the balance -of all loans now authorised is raised, will be L 19,543,194, and the annual charge thereon for interest and sinking fond L 1,035,164. Deducting the accrued sinking fund—Ll,229,2oo—from the principal sum, the; amount of liability is L 18,313,994. These figures include the Provincial indebtedness, which, irrespective of the debt for railways, amounts to about L 3,500,000, involving au annual charge of about L 220,000. As . the Provincial debts are charged on the land fund of the different Provinces, we have the charge on the consolidated revenue, reduced by the amount named. The result stands an annual charge of about LBld,ooo on the consolidated revenue, and L220,0C0 on the land revenue. I use the word “about,” because the amount of aggregate Provincial indebtedness cannot be exactly defined ; it will be varied by the liabilities which Will have to he met, and by the i eductious consequent upon the acquirement of the railways constructed out of Provincial loans. The results of the year 1875-6 had proved very nearly as his honorable colleague had antic ipated last session. As to the year 1875-6, owing to certain permanent appropriations not coming to be. charged until the present financial year, there was a saving of about L 200,000 between the amount set down for expenditure and the amount actually expended. Pai’t of this sum, however, namely, that which had not been expended on account of railways, was not to be considered as a saving in the ordinary sense of the word, since a cowesponding reduction in the amount of revenue indicated that portions of railway expected to be opened for traffic during -the year had not been so opened. Amongst the items for expenditure was L 15,000 for State forests. By some oversight, L 5,000, which ought to have been set apart for the year ending the 30th June, 1875, was not reserved, and he had caused it to be now added to the L 15,000 for the current year. He was of opinion that we should be very unwise if we allowed any consideration to cause us to fail in reserving the money which has been appropriated for this purpose. Experience of almost a wo;ldwide character, had shown the immense im-. portance of attending to the forests of a country, and he was convinced that before many years had passed, questions which now seemed to us of great moment would Lave sunk into insignificance compared with the interest which would be felt in the .progress and maintenance of the forests of the Colony. The revenue for 1875-6, ascertained as had been before stated, was about LI 19,000 less than was estimated last session, but was L 29,000 in oxeers of the actual revenue for 1574-5. After making ample provision for meeting all the liabilities of 1875-6 there was a sur plus of 1.72,000 with which to commence the current year, 1876-7. The land revenue for 1875-6 was set down at 1.836,000.” Respecting the Trust Fund, the Treasurer said, “The total balance to the credit of the Annuities and insurance account, including the value of investments held, is L 109,967 12s Id. The report of the, English actuaries appointed to make the first quinquennial examination into the state of the department will be laid before the House, and 1 think Lou. members will come to the conclusion that it is exceedingly satisfactory. The

surplus shown after estimating the present value of- liabilities and premiums, is L 12,000. The actuaries explain, however, that they Would not consider this sum di* visible as profits. It should he remembered in reading the report thit the actuaries evidently look upon the system here as based upon what is technically called ‘ participating ratesbut hon. members know that it is by no means the principle upon whi ,'h the Government Department is conducted, to charge ' igher rates for the purpose of affording a participation in profits. Insurance offices hare commonly one rate for non-par-ticipatbn, and another for participating policies. There is some object 01* some advantage I presume in this; but it has always seemed to me that those Who insure on the participating plan are asked to . pay higher rates m order to constitute the profits of which they are to have a share. It "has been clearly understood here from.the first that the principle of our insurance system was nonparticipating, and that the rates charged were the lowest consistent with safety. It is true, hoWerei*, that the House, after the establishment of the department, generously Agreed that if there should be Sbeh a profit as to justify Parliament in deciding that ft Certain sum could safely»be taken out of the insurance account, it should not pass to the ordinary revenue of the Colony but should be divided amongst the insurers. Still, 1 repeat, it has never been ' understood that our object was to charge high rates, with the view of creating a fund for division. The Government proposed, however, to defer to the opinions of the actuaries, and to alter the rates to those based upon what is known aa the Institute of Actuaries table. The estimates I shall submit to the House. This doSirtinent will provide for more substantially viding the country into districts for the purposes of insurance business, and for the establishment of agencies throughout the Colony, in connection with the permanent agents in each of the four principal cities of the Colony. . Before the receipt of the actuaries’ report, the Government had decided to discontinue the industrial branch, and an Order in Council was issued for the purpose. It will be seen that this step is entirely, in accordance with the recommendation of the actuaries. Con* 1 sidering that the first five years of the existence of an insurance establishment is its most critical period, I think we may feel the greatest gratification at the result. Had it been necessary to come to the House for a vote to cover a small deficiency I thin a. Hon. members, in recognition of the vast benefit which the system confers bn the community, wpnldhave readily passed the amount, but as it is, we have this beneficent institution flourishing amongst us without any cost to the State. Coming to the question of future financial arrangements, the Treasurer spoke as follows Hon. members and the country are aware that the arrangements which were proposed last year require some modification. My colleague made proposals which all the then circumstances justified, but observation duringthe year has shown that some changes are necessary, and others desirable. It is my duty to describe them, but I will first state the circumstances which render the change desirable, and explain the financial conditions which we aim at establishing. Amongst the reasons that compel changes in the proposal of last year are that the revenue has not reached the amount then estimated, and that I am not able to estimate such au increase for 1876-7, as will be needed to meet all the charges which it was then contemplated to impose. Some of those charges would be larger for this than it was estimated they would be for the year which has just expired, I allude especially to the increase in the items subsides to Municipalities and Hoad Districts, to the cost of education, if it is all to be charged to consolidated revenue, and to the increased Loan charges. All these would be additions to the expenditure proposed last year, whilst there is not, as I have said, reason for estimating a corresponding addition to revenue. Then, the Government have come to the conclusion that there are insuperable difficulties in the way of continuing to charge the railways to the abolished Provinces, of keeping an account with each, and of charging varying deficiencies to the land revenue of each. Such a plan is inconsistent with the economical working of the lines. It occasions complication in the accounts, stoppages of nncet tain amounts of land revenue, Mid * producing the greatest annoyance, even whilst the Provinces exist; and with the Provinces abolished, such evils would be largely increased. These reasons make changes necessary. The aim and the hope of the Government in the changes to be proposed are to take advantage of the information experience has supplied. The Provinces have broken down because of their coming into conflict with the Colonial Go-‘ vemment on many points, and especially on points of finance. Their doom a question of time, when it became obvious ' that they could not raise their own revenues, that they had to look to the General Government to supply deficiencies, and that they could not borrow without the Colony becoming liable. I tried hard in 1873 to make it otherwise, I endeavored to give them a separate finance, and I thought I had devised means by which they could borrow without the Colony being liable. These efforts have all failed, and now we have to build up again more soundly, knowing, as we do, the faults we must avoid. It has been asked why should a Province be denied the power ot borrowing given to the smallest municipality? The answer is, that municipalities can borrow without making the Colony liable, and the Provinces cannot. Another cause of the failure of the Provinces • was that within themselves a rending rivalry was always creating distrust between the towns and country districts. Again, and not least in importance, the Colony had to perform a vinces, some of which they ought to have performed themselves, and with others they ought not to have been charged. It 'thus became impossible to tell to whom belonged various duties, and even if, in theory, the apportionment could have been determined—in practice, the theory coaid not have been worked out. Wo have arrived then at three clear aims the interests of the towns to be kept from conflicting with those of the country districts ; the interests of both to be kept from conflict with those of the Colony;* a separate system of finance for each. In other words,-wo shall be successful with the new institutions we propose in pmportion to the duties of the finance with which we endow them- To carry out these conditions, we have first to determine on having only one Legislature. Clearly the risks of conflict increase with the number of bodies empowered to make laws, whilst there can be no hope of freedom from conflict, except in the symmetry and consistency of a uniform Legislature. We propose, then, to constitute districts divorced from the towns, and not possessing powers of legislation, but endowed with clearly-defined duties, revenues, and authority to augment revenues. We shall call them counties, and we aim at separating them from road districts, towns, and the Colony, in regard to their duties in finance. With the finance I hare chiefly to do, and the es-cnce of our plan is that the counties, the road districts, and the towns will r.ot be able to pledge the credit of the Colony, whilst their own credit and revenue will be sufficient to enable them to perform the work assigned to them. Mr O’Eorke, I dreaded doing away with the

Provinces, because I thought we should have to sit here in judgment on local works, and that gradually we should find creeping upon us the demoralising system of mutual, compromise call d by the .Americans “log rolling.” But we have avoided this difficulty if our system be carried out. The ukme of any particular road or bridge, or of any work indeed but the buildings for the Government services and the main railways of the country, should rarely be heard in this House, at least not for the purpose of supplication* though it might be the subject for congratulation the triumph of the form of local Govern':? 611 ** That could give to the country the works u required, without the necessity pf Parlia, mentary intervention. It will be seen that iu thus withdrawing from Parliament the charge of the construction of local works we depart from the system prevalent iu the Colonies, and approach to the Imperial system, under which the principal works of Great Britain have been locally performed. We do indeed approve this system; or rather we aim at shaping into a system the adopted, rather than legalised, many-sided form of local government which has grown up at Home during a long period, and under circumstances entailing much discontent. That discontent is referable to the feelingthat too much work is thrown on local governments, and too little revenue given to them, and that the management is not thoroughly representative. In assuming the charge of the police and the gaols, and in giving to local governing bodies a distinct contribution from the consolidated revenue, we think we avoid the first two of those causes pf discontent, whilst onr system will be thoroughly representative in its nature. . In determining the pecuniary resources of these local institutions we must insist upon a rigid system of Colonial finance, which he whe runs may read. This is what we aspire to. We hope hou. members will agree to i place the consolidated revenue on a footing, , the permanence of which will not so muen , depend upon agreements. or promises as on ( its thorough adaptability to the require- , ments it has to meet; We want to draw a . clear distinction between ordinary revenue J and .borrowed money—between ordinary ex- ( penditure and expenditure out of loans. We , want to see charged on the consolidated ‘ revenue expenditure only which it will bear, and we want to see that expenditure so , defined that the country may legitimately hope the increased revenue will be followed by diminished taxation. To do this 1 w« must know what is to be charged ; on the - consolidated revenue ; and we ' must be freed from the temptation to add 1 to the expenditure because of increased | revenue. If we make v.p our- minds . how the various services of the country are to be carried out, appointing to the ! General Government, the Boroughs, the Hoad Districts, and Counties, their several duties and several revenues, Parliament may leave to the Colonial Government, the endeavor, as they have the hope to secure a reduction of taxation. I would much rather : see the objects on which the consolidated revenue is to be expended narrowed, and the direct taxation about which so much is said, levied by the local governing bodies, than unnecessarily, as I think, to force such taxation on the whole Colony, We do desire to avoid the imposition of a property tax and income tax. We know there are those who think such taxation would be popular, who are anxious to see it, because it would touch absentees. We are of opinion that if necessary the country could bear an income tax and a property tax, but that they would be serious evils, and ought, if possible, to be avoided. They would be very unpopular, because very inconvenient, and they would be calculated to reduce the value of property of all kinds by more than their actual burden. They would not affect absentees in the manner or to the extent popularly supposed. Absentees who merely leave the Colony for awhile after laboring within it for many years, might well be excused from special taxation. They often do the Colony much good. They show by example and enforce by precept the success to which colonists may attain, and they frequently observe new industries or modes of conducting established industries, and apply their obser vations to enterprises in the Colony. Permanent absentees are to be affected mostly by taxation on mortgages ; but by the terms of their mortgage deeds they generally protect themselves so that the taxation, if imposed, would not fallen them but on those to whom they have lent their money. Simple in theory as the taxation of absentees appears, it most not be forgotten that an income and .property tax would much tend to discourage the future introduction of foreign capital, and 1 express the opinion that New Zealand has not outlived the" need of outside means b ing for application to private enterprises. If in the opinion of the House it is desirable to extend the scope of expenditure out of consolidated revenue beyond our proposals, then direct taxation will be necessary. But we hope that there will be evinced a disposition to forego such extension, with the vic'.v of placing the consolidated revenue on a sound footing without making New Zealand the first of the group of Colonies to levy an income and Property Tax. We have borrowed very much during the last few years for reproductive works, it is true, but attention has been directed to the fact, as I have already stated. Let ns, if necessary, submit to some sacrifice and show to those outside the Colony as wedl as to ourselves such a clearly defined irreproachable plan of revenue and expenditure as to set at rest all doubts as to the safety of our position. It must be remembered, that a fact is not altered by its being stated in different language, and we have not only to deal with an altered classification but diminished scale of expenditure. Nearly all the Provinces were expending in excess of their revenue, and it is idle to suppose-we can enable expenditure to be continued at the same scale. We hope for a great reduction^. jii Provincial departmental expenditure, and. as for the expenditure on public works which the Provinces showed a laudable disposition to indulge in, those works will no# fall to local bodies possessing fixed current revenues, and having power to borrow for special works of im° portauce assured them, of the necessity of reducing the demands on the consolidated revenue. We cannot recommend to the Assembly to insist, on expenditure for education being entirely borne by that revenue. Wc propose to charge two-thirds of it to laad revenue, leaving the consolidated revenue to furnish one-third, besides the coA of inspection or primary schools throughout the country. The coat of school buddings we propose should in a great measure; be charged to reserves, and for that purpose we shall move for power being given to ,School Boards to borrow on the security of reserves. I speak of reserves for primary education. The balance of revenue from reserves after meeting loan charges we are willing should be devoted to lessening the contribution fiom the land revenue, so that in Fact the reserves will pass in aid of that rc- \ ouue, and not in aid of the consolidated revenue, which will continue to pay its third and cost of inspection. After time, however, we consider that the counties should contribute something to education by keeping the school buildings iu repair, and providing additional buildings. fn order thae tins expenditure should not constitute a burden at the outset wc have inserted a clause iu the Counties Bill postponing its operation for four year-, and then only authorising it to the extent required -by the Assembly. These reserves and the manage-

ment of schools we desire should continue in charge of local hands and committees, and we shall introduce a Bib to provide for such local management. In the provincial districts which will be left without local management after Abolition takes place we do not desire to see special taxation for educational purposes, and will piopose its abolishment whenever it exists. We think, however, the children educated at schools should pay a modest fee; and it is part of our plan, whilst the revenue from the reserves shall pass in reduction of contribution from land revenue, the fees shall pass iu reduction of contribution from consolidated revenue. We do not propose to reduce the subsidies from consolidated revenue to joad districts and boroughs. The subsidies payabiC by legislation of last year to road boards and counties from consolidated revenue and laC.d revenue, amounting to LI to L2, we Int/nd to equally divide beta een the road districts counties. The license fees collected within their limits we propose to give to counties. The license fees and LI to L2 to boroughs from the consolidated revenue, we are still willing to give, only we thin ; some duties should be entailed on boroughs in return. It seems to us they, as well as, counties, should contribute to the support of charitable institutions, and we propose to make this a condition of the grant. We shall submit a provision by which outside districts using these charities may be called on to assist them. We shall not require boroughs or counties to retain the management of these institutions in their own hands. On the contrary, we should much rather see it in the hands of Committees, private charity being invited in aid. Whilst they are in Government hands private charity is discouraged. The Corporations and County Councils, by making grants to these institutions, proportionate to the amounts privately contributed, would encourage private assistance and save a great deal of money. We shall be willing that the consolidated revenue shall in like manner contribute os for every ,£1 raised by private subscription. The Government of the Colony will then be spared the work it is not desirable they should perform, and the consolidated revenue will be relieved of supporting these institutions beyond the rateable contributions I have mentioned, and the expense of inspecting them, so as to see that they are properly managed in the sense of the term * Charitable Institutions/ I do not include Lunatic Asylums; the charge for these we place upon the consolidated revenue. We propose to assume the charges of and the responsibility for the railways. There are unanswerable reasons, to which I have already referred, for this step. The only question is on what terms they should be taken. Our proposal is that in consideration of the Colony accepting the liability for constructed and authorised railways, and for those yet required to complete trunk lines, as also the liability for cost, past and future, of immigration, a certain contribution from the land revenue should be made. We don’t see how otherwise it can be done without recource to large direct taxation, nor do we see how there can be two opinions as to the fairness of the proposal, considering how the railways and immigration hare raised the value of the Waste Lands of the Crown, and made them more saleable. The land revenue of each Province should from the first have been made to bear the entire interest on railways in course of construction within the Province. My colleagues showed last year that it was a mistake to suppose we had paid that interest out of borrowed money—that, notwithstanding a limited power to do so had been taken, it had not been exercised to an amount that was more than covered by the special revenue contribution devoted to the public in the shape of one-half of the Stamp duties. In theory we were paying interest out of capital whilst works are in course of construction. Considering such interest part of the cost is sound,- and for private enterprise may be reasonable enough but in practice the public interest rebels against such a corirae when pursued by a Government, and I was very glad the year before last to be able to state to the Committee that the proposal of the Government was to take the whole responsibility of interest on cost of works, finished and unfinished, upon the revenue, and not to use the power we possessed to partly charge it to loans. But while the Colony was thus careful to refrain from charging on loans an expenditure open, as I have j£.d, rather to an instructive than ifeoretical objection, it did not, as it might well have done, relax its previous intention not to make the provinces feel the burden of uncompleted tween itself and the Provinces, of capitalising interest on the cost during construction, and relieving them of all charge until the railways were constructed, equipped, and opened for traffic, and were handed over to them or worked on their own account. This really amounted to the Colony, from the consolidated revenue, lending to the Provinces money on permanent loan. 1 have more than once said we had tp submit lo expenditure to induce the Provinces to rest- contented with our performing works so signally useful to them as the railways, with which we have literally gifted them ; for, up to their completion, they not only incurred no charge, but largely enhanced their revenues by the sale of land induced by the prospect of railway communication. I do not hesitate to say that in letting the consolidated revenue bear the cost of the interest on these works whilst in course of construction, we submitted to an expenditure which snould have been-eebarged on the land revenue of the Provinces respectively interested. This plan cannot be continued, if we are to place the consolidated revenue on a satisfactory footing. We must remember that wo can’t spare part of it to relieve the land revenue from contributing to the cost of interest while the works that benefit that revenue are being constructed, on the ground of saving the consolidated revenue from burden oil interest on incomplete works, A contribution ironi the land revenue is justified, and is strictly in accordance with the conditions under which the Public Works policy was instituted. Indeed, the original intention wus to look to largo assistance from wastelands. I have referred as yet only to the burden of interest on works iucompletcd, but wo must also bear in mind that it is not to be expected that railways when completed will at once yield, in excess of -working expenses, sufficient to meet interest on cost of their construction. Such a result, . would bo scarcely desirable, for it would neuessitiite the adoption of very high rates. ,-n.l the niter ignoring of :■'! cjuos} ions of convenience and promot ing ..f sctUc-mmil, in favour of an iron inexorable ruWf . v kin«railways only lo make them yield as much profit as possible. There isn<» reason why land rove.mo should not, and every reason wlty it should, boar a proportion, if no; (he whole, of the cost of difference, between the j interest paid and that recovered in the abu.pe j of profits in excess of working expenses, i But, then wo are met with the condition j that it is inexpedient to work each line : j .senarat'*ly,und, therefore, that the oontriln-- , i lion must bt; made a u croii raw one. We , | j a: glit ’nave pr. .posed a contribution f’-om. i j the land fund in the shape of a uniform ' percentage on the gvox revenue, and he A ! J enabled the fluids to meet ii without levs ■ 1 to Provincial districts by raising the price

of land. But, although there would be no actual loss to Provincial districts, such a pHn would war with the sentiment which has made the Compact of 1857 to be looked upon as something more than an ecoronrcal arrangement. We are led to belie /e that, whilst the people within any Provincial district would object to the proceeds of laud travelling beyond the boundaries of the district, they will willingly recognise the fairness of contributing from the land fund a stated interest on the cost of railways within their own boundaries. Taking into consideration this element of interest on uncompleted railways making the present expenditm*e more unproductive, it seems to us the contribution should be larger at first, and gradually diminish. The contribution we propose from the land fund of each Provincial district is—For three years, two per cent.; for the next three years, one and three-quarters per cent., and for the next three years, one and a-half per cent., on a total expenditure on railways wii-iin such district. After which time we think tnCJ should be sufficiently productive for the consolidated revenue to bear the whole responsibility. The Land Compact of 1856 cannot be left without further remark. While, as I have said,, we are willing to respect it in spirit, in letter we are not willing to condemn a large portion of the Colony to an outcast existence. There are parts of the Colony which at present do not enjoy a considerable land revenue. 1 advisedly say at present, for there are many who think that in the course of time the districts which now yield little land revenue, will yield more than those which at present are more fortunate. But an old adage says that whilst nature slowly allows lierbage to grow, a very useful animal may starve, and it is not enough to point to eventuabilities to satisfy the present wants of a considerable portion of the Colony. Their case we are of opinion must be met, and we propose to meet it by making the consolidated revenue guarantee to them a sufficient revenue from land to meet the prescribed payment. The and is to bear it thus:—Whatever we charge specifically on land, such as the cost of surveys, interest on provincial liabilities, including the interest on railways, and the one pound to pound subsidy to road districts, we propose shall be gauranteed year by year from the consolidated revenue, to be recovered without interest from any surplus land revenue in the future. The whole country will thus enjoy certain advantages. Whether or not the land revenue in any particular Province is equal to the demand for a particular year, interest on Provincial loans will be assured, and so also will the cost of education, and subsidies to counties, road districts, and boroughs. Some of the counties will be more fortunate than others on account of the surplus land revenue they will receive, but they will all have one-half of L2 to LI subsidies, the other half going to road boards, license foes, tolls, and the power of adding to their own revenue. Honourable members will have understood from what I have said that the Government consider the time has come when the upset value of land should be increased. Admitting that, as was to be expected, the ramst accsssible lands have been first selected, it is to be remembered that the value of all lands has been enlarged by settlement, and public works which have been progressing for many years; and that some of the very best land is now only becoming available by reason of communication which is being opened up to it. Interest on money is less than it was in the early days of the Colony. Every reason in short points to the expediency of raising the price of land. What we intend is to ask the Assembly to concur in raising the upset/ price wherever it is less than L2 an acre, by about 25 per cent,, without interfering with the different land systems in force throughout the Colony, with two exceptions: one that we propose to repeal all power to make free grants of land, including those under the Immigrants’ Land Act, the other that wc shall ask Assembly to agree to a much enlarged system of deferred payments. We are convinced that no artificial system of special settlement will compare with a general provision open alike to new comers and old settlers, to poor and rich, to acquire on easy terms of settlement a homestead of 200 acres. To young men growing up in the Colony this will be a priceless boon. Wo had considerable hesitation in deciding whether it was expedient to recommend that the upset price of land in Canterbury should be increased. We thought that the price should be higher than it has been during past years, but we could not come to the conclusion to raise it anywhere this year over L2 an acre. All these matters I can only touch upon now, but it is evident that as the Government have intimated their intent ion of asking Parliament to raise the price of land, it is not desirable to allow speculative purchase at existing prices in the interval. If no action is taken the land open for selection will be crowded to-morrow. I shall therefore ask the Committee to agree to a resolution to the effect that upon pur • chases of land made after this date any addition by law this session may become payable on similar land shall, as a condition of issue of Crown grant, be payable on the laud taken up between the present date and 1 that of the coming into force of-the general Ac t increasing price. This resolution I wish it to be understood will in no way bind the House to a gree (o an additional price, nor will it involve airy extra payment in anticipation of law, but it will prevent speculation on the issues of the deliberation of the Assembly, whilst it will leave the Asssembly time for considering the question. I appeal t* the committee to accept the resolution in this spirit, and not to discuss the question of increase before there has been time to take the whole financial statement into consideration. With the suggested changes from the Abolition proposals of last year, we believe we ma y dispense with direct taxation for Colonial purposes. Those changes are education to be partly charged on laud revenue ; and the bulk of cost of charitable institutions, exclusive of lunatic asylums, to be devolved on boroughs and counties. There is besides the changes involved in taking over the railways. With that is involved the condition of a stated contribution from the land fund of each Province to Ihe rail ways within Its boundaries. One oihev point 1 should mention is that we think if a limit be not set lo the term of the r.oboKiies to counties, road districts, and borongas, then, as was the case with the Provinces, when the Assembly comes to vary their revenues, a demand will arise to acivpt liability for their loans. It is 10,, nnu-.h lo suppose as these institulions progress, that the consolidate] revenue* or land revenue can give equally progressive aid. iu* ineiv.i ;e year by year will be very large, and aith the probability of such large increase. f hope it will be considered lhat Parliament should not bo bound beyond (he Following torsos, viz., that the consolidated revenue shall pay to boroughs, road districts. nr counties, LI for LI for live years; that-1 unreal lev the question of its continuance |,o open to the consideration of Parliament ; and Unit, on like conditions and for o. bke period, it shall guarantee She j payment of Li to 1,1 out of the k.ml fund. | i venture lo think these plans meet j I 'o'-y the* many admitted difficulties. j (lor roxt of i iiimi.ioi zuu< in: iu wc Fourth * Page.)