FINANCIAL STATEMENT.

Evening Star, Issue 4167, 5 July 1876, Page 4

FINANCIAL STATEMENT.

(Continued/,-ora page 8.)

They ■will leave Provinces to enjoy their land revenue. In no part of the conutry can such di- 1 - treoa and destitution in respect to public inslinitions exist as has befors,ejisted—t,hf consolidated revenue will have only a certain loading'. It necessary, revenue must he added to by taxation, but there ■seems to be mce probability as the railways are completed and the heavy liability which their incomplete, and therefore nnremuuerative, connection occasions is lessened, that taxation may be diminished Instead of increased. It is to be hoped that the system of-giving away land will not be eoutfaraed, Wo start with a redaction of-taxat ion in one direction, for we propose, as I have already stated, to abolish all existing education rates. In dealing with future financial arrangements, Ictnaot forbear a refe’ once to the very important effects which wo anticipate will tolow the change ■which we will submit in the present system of purchasing Native lauds. If our proposals have ©ffeet given to them, the most fertile cause of Native expenditure will be removed, the i able of property in this Island will be largely_increased, and therefore its capacity to contribute to local ■works, the condition of the Natives will bo ««tly improved, and the Imft. revenue of the North Island much augmented without the noces sity for farther, loans and constant interest-beanpg, ♦xpirndltnre.' No longer.wlll the’ Natives be galled with tho reflection that instead of aiding them, and receiving a legit mate consideration in return, wo are always trrylng to. get the better of them m bii - «uui into which they and we enter. No longer will the land revenue of the North Island be questionably equivalent for the expenditurei incurred -smd no longer will the Government of the. Colony be forced into competition with private individuals. The revolution in the system of Native land purchasing is a worthy crown to tho other great changes which we believe will relieve New Zealand of the principal difficulties under which she now Jalvors, and will quality her tor the pre-emment position amongst these Colonies to which her capn. bilitioe entitle her. The railways we propose to arrange for acquiring, ; snch of the railways as are Provincial property, by dedusting from the indoh ted ness of the Province parting with the railway, an amount equivalent to Uo value This would lessen the charge on land fund for loans of that Province, and, thereto e, leave more of that fund to be divided amongst counties. As we are taking over the ialways. it is right to remember the posit ion of the Middle Island railway fund. That fund was created as a charge on the Colony to correspond with the charge on the Colony lor roads in the North Island. As the railways are now everywhere to he charged .on the Colony, it is fair to allow to the Provinces concerned a reduction of their railway debt to tho extont that each has received credit for railway (not roads) out of the Middle Island nailway fund. Regarding future loans: -Gio question of farther borrowing is one about which the Committee will, feel much interest ia regard to > Provincial expenditure, and honorable members will not be surprised twrtearn that, when Abolition takes place, a large amount of liabilities wiil doTolre on the Government. Some of these will he for incomplete engagements, some for existing liebllities, some for deficiencies, such as overdrafts, while a part will be for ordinary current expenditure, which it will be impossible at once to arrest. It must he remembered that after Abolition the present Provincial, revenue is disposed of. En- - venue from licenses, for" example, goes to focal bodies! Tho laud revenue a* appropriated to meet certain: charges with a fixed destination for the balance. In short, with respect to revenue of all kinds, the new arrangmn ‘tits ooirtmcnce when Abolition takes place; but some of, tie expenditure it may not be possible immediately to «';op, and liabilities must bo met. I cannot give Con any trustworthy estimate of wbat the total will e. ■ I shall rod glai to find that, it is less than half a million. What we propose to do is to ask power to issue Treasury bills or debentures to cover it as its amount is ascertained, the Provincial debt of each to be augmented by the amount borrowed to discharge tho liabilities of such Provinces. Some of tho appropriations approved by tho Government an tho recommendation of tho Provincial Governments involve expenditure which will extend far beyond the period o'f Abolition. Especially is this fSio case with iiio Provinces of Otago and Canterbury, Ministers did not recommend tho approval»f these authorities without adeqnato consideration, although they felt tho difficulty of continuing iIM expenditure after tho revenues had become the property of local bodies, yet it seemed to them 80 inexpedient to suddenly arrest the works now piocceding, 1 for new bodies cannot immediately get to work and mature their arrange monte, that they'decided to approve the estimates recommended and to see them carried out after Abolition at tho cost of the Provinces concerned, -The works authorised by these esMmates not completed when Abolition takes place will bo,carried on on behalf of tho Provinces and will form part of their outstanding liabilities. At an.earlier period of my statement this evening I explained that a considerable amount appropriated for public works for the year just expired had not been expended; I also stated approximptely the ways and means for public works that were yet available. We propose to continue the progress of trunk railways, and a reasonable expenditure on immigration. The latter, we think, should bo temporarily reduced, because of a somewhat lees demand for labor. The construction of trunk railways should be as continuous, and as rapidly as may from lime to time be found convenient. I have already said I should bo glad to find that half a million would meet liabilities of tie Provinces. There is, indeed, little chance of this. The liabilities, to .tho consolidated revenue, and those to the Public Works Account, make nearly the sum without including liabilities to be discharged after Abolition takes place. We propose to ask authority to borrow L 750.000 for Prc viucialliabilities,• and L 1.230,000 for public works and immigration. We do not think it will be necessary to negotiate more than a million this year unle.-s a favorable opportunity occurs. My colleague, the Minister for Public Works, will e ; , : ! plain as soon as possible tho views ot the Government as to expenditure of money. I may, however, mention that wo propose to devote it to continuing tho main lines of railway. As to immigration, it will bo the duty of jny colleagues to enter into details concerning the intended expenditure for the year. I desire to say a few words about the general position of New Zetland efredit. There is no disguising that it has suffered, partly from detraction, which I hold to bo altogether unmerited, and partly from tho fact of tho Colorty havi g borrowed very largely.’ It is impotasible to secUro for the ppblio debt of a Colony like Ftrw Zealand’ati accurate Consideration of its true nature. People will not pause to analyse. A public debt means to them a public debt in its ordinary acceptation, and they compare Now Zealand’s public debt with national debts of old countries The comparison is essentially faulty, for ihe Now Zealand debt is mainly composed of money ex pwSled on objects which have no place in ordinary national debts, but the value of which is fully re. cognised- If a person wished to show the extremes of good aild ill which distinguish a ci ■nntr. he would be apt to point to' the small amount of money expended on the usual objecs-for which national loans were contracted, and to the vast expenditure on the purposes for which, mostly, the debt of New Zealand has -been contracted. Do not let us eay there is nothing in a name. r If a large proportion of our New Zealand debt had the shape of a loan to railway companies, not to the Colony, its amount would be accepted as a proof of the Colony’s progress, and judicious promotion ot settlement. As it is, we must accept the position, and we must show we do this by so improving the condition of the securities already outstanding, as to leave no room for carping complaids, and by contracting our expenditure until the market has time for recovery. I have already mentioned that the agents have not sold the last parcel of debentures for tho negotiation of which authority has been sent Home, and that they m e negotiating for a temporary loan on them, obviously it is desirable to add to them at present as little as possible. To improve their position is also very desirable. I recommend honoroble members’ attention lo a paper respecting the inscription ot stock by Bank of England. Tho Government are of opin.on that through the arrangement which lias been marie, the Assembly has it in its power to greatly Improve the position cf New Zealand seeurities with any conwspo;. ding. The House will be earnestly asked to attend to this in a* ter—it is oi.e of vast importance to the Colony, for it mat only involves the improvement of the present credit of the Coloay, but it includes a great saving of future expenditure in regard toldah charges. In another plane you will be asked to improve the position of New Zealand’s credit, by making its finances more simple and therefore more easily comprehensible With a system of well-defined partnership, and no partnership which has prevailed there Lad so many in rb’ate details that people have shrunk from the task of mastering tor themselves tbo real pcs - tiou ot the Colony, and have consequently been incliuad to accept any misrepresentation which might he made. I hope m shall this ye r r define what are and what are not purposes to which consolidated and other revenues are to be devoted, so as to leaw no doubt what the financial positi not the pr .sci t is, and what the financial arrangements for the future are to be. I have said that New Zealand loans include ampunts for objects which persons outside do Jim. accept as coming within the scope of ordinary national debts. Within limits lam not sure that we are altogether right and others altogether wro' g. It has often been askea Wo when money for useful objects was wanted by local bodies such as Provincial Governments, Harbor Hoards and Borough Councils, why should not a Colony borrow at as low a rate aait can he obiiimod, 'p, c . uuawtria partly to bo found in tho fact that the quofaiions for orjr loans are notsohighiioiieshould wish. Th so wlfo lend money a great prejudice against various borrowing. Tho Imperial Governwent has often said when urged to t>- row forO do. pies and for other than directly national purposes, ilmt if tho country committed iiswf to such man ' its o edit would not be so good, and it would bfive to pay more for the money it borrowed. As u titter of fact, .’tho direct loans of tb>« count; - imuand a considerably higher rate than )s{> which aae equally’well so'.urod by an ;;iri er rinhuaitf oe. It does not follow ihat the bodies to whiqh Imperial assistance is refused far.* tad v. Them aze many public bodies in Gn at li.rain Which have borrowed mouej almost ss’cheaply *a

the Imperial Government could have borrowed it i tor them, and without risk of generally reducing the value of the Impe. iul securities. lam convinced that in IS ew Zealand we must in future be very chary of giving tbo guarantee of the Cob my to oeal oodles. I think.wo should c- mt into to add to' tue ordinary rocim'uised purposes of public debts, . the cost of railways and imm gratiou, but that we slioutd avoid making tbo Colony liable for lavrn numbers of public works most useful in their character, of which, in future, the 10.-al bodies a. o to have charge. In the Bills relative to boroughaim counties which we should bring bcforc.you, we make it perfectly clear that the Colony is not liable tor debts they may iueur. Wo propose to give them certain powers of ordinary borrowing proportionate to their rates. When they wish to go beyond this and to, borrow for special purposes, on special securities, wo desire to make it necessary that they should obtain the consent and approbation of the ratepayers, and that with that Consent they may go into the market and make their own financial arrangements. lam not thoroughly familiar with tbo system nt Home, but I behave that to some extent it includes Government supervision, within some cases a power of approval or veto. After much consideration, we think this would not bo desirable hero. Anything of the kind in the Colony wonhl ho construed into a quasi liability, and the Government would uot be strong enough to resist the j argument that their approval of a loan committed by tbo Colony. • At the Government is so powerful and so accustomed to disregard inferential claims of the kind, that they,would treat wdli indifference any liability not direct and explicit. Turning to the expenditure for the current year. The Treasurer explained that, including L 112,090 for nine mouths’ grants to municipal ties, and also including capitation and special allowances ; for three months, and a moiety of Stamp Diby for three months to 1c paid to the Public Works Account, the total was estimated at L 2,317,000. The incorporation of the. Provincial with tbo General Government estimate baa occasioned an immense amount of trouble, and, after all, some of the former had to be incorporated. As they stood, tho Government were sanguine that when tho Provincial debts had been taken over, a very considerable reduction on the estimates would ho effected. The Treasiu or added, I have kept in the estimates a statement of all the appropriations last year. I will forbear on tho preseut occasion from entering into an analysis of tho differences that taking over tre Provinces will involve. Hon. gentlemen will bo able to form their own conclusions upon that point; they will probably consider that by taking over the Provinces, we arc incurring a larger expenditure. than we meet by the payment of capitation allowances. Indeed, that this is 86, may be readily conceived when we remember that the amount of revenue wc take ovo>- with the Provinces is a mere bagatelle. Whilst wo are under taking, to substantial items of expenditure the two systems are indeed so entirely dittorent that every person who chooses to enter noon n comparison of them may do so from a different point of view, and therefore conic to a different conclusion. Tins is uot a time for me to jiu.ify or ue.cnd the Abolition policy. I strongly hope that one of its results will be that, on the whole, throughout the Colony, 1 1 ; ■ vo will bo a less amount of expenditure, and I look upon it as a g e it advantage that a very large proportion of the expendihire that has been conducted by the Provincial Governments will be conducted by a number of tin y local hodjfS. As to ways, toe Treasurer said the Consolidated Revenue was estimated at 1.2,1ii5,1'l i. inclusive of Lite,Ok as receipts from ra Iways t' e land revenue was set down at L770,0v0 ’and tho goldfields revenue at J.83,0,i0. These items showed a total revenue of L 3.050.000, which lid not include license fees, nud which would bo paid direct to counties, :n I boroughs, and he had prepared a table, of revenue in this fouu for statistical purposes only, and his reason for so doing was that New Zealand bad often been placed ah a great disadvantage through the comparat ve statement of revenue, the receipts from land ardfrom goldfields, being included in the totals <dvou . for the Australian Colonies. But having b. Jii excluded in the case of New Zealand, the actual wavs and menus of-the Government for tho current year were estimated as follow Consolidated revenue L2,lffi).ooo; balance available at tho commence! Mont of tho year. L 72.00 0; and tho 2 per ecu l . contributions from land revenue, on account of" railways within the respective Provinces, L 75 000 These items represent a total of L2.:jt > 000 • ’and deducting the amount of the estimated oxpcndituro, -there would he at the close of 1870-7 a surplus of 1/29,000. This would, no douht, he considered a- very small balance espccidly as there were sure to he supplementary Estimates; but if the Committee resolved th-t tho Supplementary Estimates should uot le excessive, he thought it would be found tint the ways and means prov.ded would be sufficient for the services of tho year. He was i.-deed sauguiuo of reductions in tho eslinialcd expenditure being effected when the Provincial debts were in the bauds o' tho General Government. Thu Trc-i surer explained why ho had uot included goldfields revenue in his estimate of available nimi s “La-t session,” ho said, “the goldfields members perBunded tho House io accept a clause by winch all or defraying all the expenses of llu goldfields (he balance of revenue from them was to bo handed over to the local government bodies to be Mildeut to the payment of a subsidy of L2 to LI The Government explained at the time that such a clause would mean nothing—that they could not hold out any hope of sneh a subsidy being mo o than nominal. A moment’s consideration will show honorable members that the idea involved in the clause is absuru. It s that the Government shall p.y a subsidy of La to Ll upon the amount of revenue collected. Such n plan wou’d bo rolling a stone up a hill with a vengeance If the Government had to pay L‘j I I upon tho balance arrived at in the way stafoi then the Governin' nt would not improV. iolv think they were doing right in making that balance ns sm ill as possible. Ihe plan w o u d work cm in this way; Occasi nnlly heavy ‘finds’ would be made within some goldfield, and the Treasury would have to deplore such results, us making nuesno t. d cals upon tho revenue of the Colony listed of the Treasurer being allowed to rejoice ns be would naturally desire to do in tho progress of the % m. fields, ho would have to dread tho oc.uirencn of discover es wkit-h wov.M otherwise satisfaction. But whatever tho Treasurer tniglp fool, it was clear that the clause agre. d to last session was mcomplcie.aud must bo inoperative, it provided that the surp'us of gold export dot., as well as of goldfields, ordinary revenue j,«h.mid tv,ss tfio local governing hotly of the district within | which it arose. But it did uot provide or Kt.g. gest how tho amount arming within each distenet should bo ascertained. When the Treasure came to look into tho question, it was found ttiovefore that the clause could not bo canned into effect It w.uld ho impossible to connect payments made into tho Custom House on account of export duty with the quantities of gold brought <b,wu from the several Indus, even supposing all gold was convoyed by estJoit. This difficulty can ta-dv he remedied by legislation, but tho refit of (he sui'i.vt dem .nds larger utteul ion. The Government .u-s.i-o to make a j>roi>u.s;u which they hopo tho !-*«l«iiioLta* members will recognise' ay more beneficial loiho | district than that of last sc shin, namelv that in stead of charging against Urn revenue for toe goldiioids, nil the espeuttiture upon thrm, inittii lii.v that tor and po ice, and handing over Ur* uaiaucc, subject to tho provisions propos-d ust hos-ion, all mo ordinary revenue for caG- lbh| including the export duty, shall ho handed to G, ’. local governing bodies of that district wiihin which me fields aPs tuated for expenditure on local the honorable members representintr goldfields still require that wo shall adhere to the pi .u of last session, then wc shall have to charge against the revenue every item of expend', ture and except in the case of lucky “ finds” little mo ei will revert to tho local bodies, “Itwdl” continued tho hon. gentleman, “ be satiataetors to the country and to the hon. members to find that it has uot been deemed necessary b■ propose anv in crease of taxation. Indeed, wo propose’to some lxtent to reduce taxation, since wc ask Parliament to do away with the education rales that have been levied m some parts of tho Colony. The year we arc now commencing is, in my opinion, the most onerous and. difficult wo have had to dowith for tome time past, and for which wo shall have to provide for a long period to conic. Besides tint th °^ e vn lU Wh ’ CU wo Lav,J to upon our! all , tb -° immense responsibilities wmieh w, 3 shall hive to meet when abolition takes place Tt ranm yoa lv Ml . w,licli ' v , c sbal ‘ b< Ulaflu Particularly to teol the effects upon the revenue of having to meet the interest ou the co t of railways in eom.se of construction, an t_3 which are not yet renvo ductive. As the railways are completed and come tuto use, they will, y. ar after year, give us greater rebel financially, and I see no reason to suppose that alter the present year, wc shall uot he at liberty to resume immigration upon a considerable scale lam confident that if tho provisions we mopose tor laud ou deferred p-iymeutauiviuLl/* they will induce a prreat amount of avttJeinent, limn* to some extent, relieving tho labor mark'd, and creating a demand tor further labor. lam sure f weed scarcely s .y that it has not been an I will not ho onrd sire to cause a glut of the labor mm'ot jst.itf mouta that tho Government have such a desire have been made, but. they are not tmo. No ,1 u ; neraon ° * h . ewt there arc some unemployed pt.iaon.-5, bill in no circumstances, »no under no wn■ntions, wou.d it be possihle, whether the scale of nmnigr ; t;on bo largo or small, to find a country in h.cn then are not same f ;w p.-oplo who are not able U T’ 01 ’ U1 ”“ who * u otlio ''* wou ld not look .is unde n. 1 1 nnugvii-s. lamsiuvu.e mi- . ncr ot such persons in this Colony at present is not ouge. Io that statement I believe I shall ho jS. ed Iv bonorahle men, tiers from the various d'slijets, htill, in view of the fact that sane of the authorise.l railways are no.ng compMe^-uH fiom other circuinsla-iees, we have thouwal n tieltcr for too next few months (o reduce (lie number of assisted immigrants, I will briefly rethe principal .-oiuts of tbo statement I \V w ll ( t o , L ° n " l ' t0 Babmit to the committee Wc Wish to have it uiidurstood that we do not consider in- question of Abolition an open on W. ook upou it as already decided, ami we me f Of uuou that tln.ro is no ehauoe wimtover of tin;le "son n.'ing rov-rs al. We wmii iionoui ■!.. ' bers and the country to ree-.guise tlmt Ahodtion t^AßoViteAr^iv k tS°G u ; "i “I"" thu tt-voifiV-mt 'a tu.noer ot gravely oneious dntici, I hare

desired to make it clear to honorable members that a leading feature of the present budget is the putting upon a simple footing the nuance of the Colony, relieving the consoliua' i-a rev. nuo of various coutingeucb a, giving to to-.-Colony its finance, and to the differ.-nt local bodies theirs, preventing in the future the clashing of claims of interest wh eh has caused so much ansohiei in the past. It has been my duty to point out 'hat certain changes in the Abolition proposals agic. a to last session have been rendered necessary by the larger knowledge and experience which the past has supplied. These changes are represented piincipally by the eo-d of education being now proposed to be jiartly borne on the laud mnd, and by tne cost of charitable institutions being mainly devolved upon the people of the Colony themselves, and on the districts in which the institutions are respectively situated or the residents within which, they serve. I have had to explain to the committee that in the opinion of the Government it is necessary the Colony should take charge of the railways of the country, and that in order to do so, and to meet the pressure of the interest on the cost of works in course of construction, as well as the deficiency to cover interest which the receipts in excess of expenditure may for some time show, there should be made from the bind revenue of each Provincial district during tl e ; o :t nine years a contribution, beginning at tv.o per cent., and falling gradually to one and a half per cent, upon the' Cost of the railways within its own boundaries I have further had to explain that the Government helievethe time has now come when a material increase in the price of the waste lauds of the Crown should be made, not with the view of benefiting the Colonial Government, but to enlarge the surplus at the disposal of the local bodies for the purpose of doing justice to the 9 3 who long years since purchased land at Us prices, and who have a right to consider that their labors in mating the Colony what it is render it but fair bat those who now come in should pay a higher ynto tor land than was paid by the pioneers of settlement. These are the main points of the "Budget, ftnUrl-comtnend it as a whole to the earnest and bivorab.o consideration of honorable members, inisas.no time/or party or personal animosity. I tool thsit lam in the midst of three generations of public men. I see around me those who had grown grey in vetetan service to the Colony when little more than its name was known to me. I ?ee those, who, contemporaneously with mo, ; have ..given their best, services to the country during the las'; decade, and I see and welcome with great pleasure a number of members who, though only this session, entering public life, have a.ready given evidence of vigorous thought, and luiLUt and eloquent speech. Wo meet on no common occasion. We shall this session make an imprint on I ho history of the Colony that cannot be effaced in all the years to come, as far as the internal affairs of New Zea and are concerned. It has fallen to us the old, the middle-aged, and the young in public ~, ~ n lve *0 the country a now constitution, which those who live now, and those who come after us, will have to work out. In the presence of such a, duty the sacrifice and prejudice of the hour should be hushed. Frio from every disturbing influence from which we can possibly escape, let us devo'o ourselves to the endeavor to frame a conslitution winch will give to a law-abiding, libertyloving, and noble people, powers of self-govern-ment. unfettered by any control save that which one Tai liaincnt;in the country deems it necessary to giro. *

After a Ion? discussion, the resolution was amended as follows That whereas-the Commit, tr e lias uiidcr consiiloation the question of in-ci-'Misma-, during the present session, the price of was' o lauds ot ti-p Crown throughout a great part ?} t he Lo.oi)a to a price not exceeding L2 per acre, it js resolved by the Committee, if any such increase is made during the present session.it shall oike effect as to all sales made on aud after the sth day of Juh', 18/h and until the end of the session, and that aa to all such sales the purchaser shall Be required to pay such increase. Further that this res dotion oo forwarded to the several Waste Laud Hoards aud Commissioners of . Crown Lauds, in oi der to at its terms may he made known to intending purchasers .provided always that this resolunon s.iall not affect land leased or sold on deferred payments.' 'the resolution ns amended was reported to the House and adopted. The House adat 3.li> this morning.