Financial Statement

Feilding Star, Volume VI, Issue 5, 21 June 1884, Page 2

Financial Statement

Major Atkinson, in the House last last night, said— Mr Hamlin : Tho task which I have before mo this evening is comparatively a li-ht one, as I have only to submit for the consideration of the committee the financial results of last year, and ask for the grant of a sufficient Supply to carry on the public service until a new Parliament can meet for the despatch of business, which I hope it will do within two months from the present time. I desire at the outset to assure hon. members that the financial difficulties with which we have' to cope during the current year, are by no means of so serious a nature as some seem disposed to think. I am satisfied that there is nothing in the difficulties of our financial position to make us doubt our ability to overcome them without placing any undue burdening upon the taxpayers of the colony. It has been my pleasing duty for the last two years to announce a satisfactory surplus at tho end of each financial period, but I regret to say that the serious depression under which New Zeal'and,~in common with a large part of the civilized world, has been suffering for some time past has caused a considerable failing off in some items of our revenue and lins thus trans Formed into a deficiency the small estimated surplus of £8,295, tvith which I hoped to have ended the year. Ordinary Revenue Account, 18S3---81 In the statement I had the honor to i make to the committee last year, I esti- | mated the total expenditure for the year I ending 31st March, 1884, at L 3,661,496. | The supplementary estimates, however, increased the amount to L 3,686,054. The total actual expenditure on this account during the year proved to he £3,681,320, being L 4.734 less than the estimated amount. A saving of L 39.200 was effected in the constabulary and defence services The ordinary revenue of tha year 1883-84 — that is, tho revenue exclusive of the receipts from land sales — was estimated in the Financial Statement of 1883 at L 3,573,80 0; tho subsequent increase, however, in the property tax of one farthing in the pound, brought up the estimate to L 3,658,800. The actual amount of ordinary revenue received and brought to account by the Treasury during the year was L 3,493,659,, 493,659, being thus L 165,141 under estimated amount. In so small a country as this we shall always be subject to sudden rises and falls in our revenue, and wo must from time to time expect to have to face a deficiency unless we are prepared, in our annual|budgets, to leave a much wider margin of surplus than seems to me either desirable or necessary. Land Fund Account 1888-84. — The amount to be expended during the year out of the moneys derived from sales of land was estimated at L 238,162. The actual expenditure was L 238.662, or LSOO more than the estimated amount. The moneys handed over to local, bodies for expenditure on road making, from moneys derived from lands sold on deferred payments was L 23.358. There was also paid to local bodies during the year L 45,446 for rates under "The Crown and Native Lands Rating Act, 1882." making a total of L 68.804 handed over to local bodies. The estimated revenue during the year from sales of land was L275,600,the actual receipts proved to be L 232,545, being L 43,055 under the estimated amount. The revenue derived from cash sales was L 163.758, and from sales on deferred payments L 68.787. To the revunue I add the balance with which w* began the year, L 86.564, making the total receipts L 319.109, deducting from this am»unt the expenditure, amounting to L 238,662, which includes the sum of L68;804 paid to local bodies, we get a balance at the close, of the year of L 80.447 subject to" the charge of L 75,203 transferable to the main roads account. The Public' Debt on the 31st March, 1884:— The gross public debt of the colony amounted to 132,367,711, and the accrued sinking funds to L 2.792.808. The net public debt, was therefore L 29.574.903. Of this sum. however, there remained unexpended. 1-877,912. in the Financial Statement which I made in 1883. During the year there has been raised the second L 1.000.000 of the loan of three millions authorised in 1882, together with the ! L 250.000 authorised by v The Colonial [Inscribed Stock, Loan Act, 1B82. " Public Works Fund. — For the year ending the|3lst March last, Parliament voted out of the Public Works Fund L 2,014,751, exclusive of the vote for land purchase, L 77.000. The actual expendiditure was L 1.278.710, exclusive of the expenditure for land purchase, amounting to L ' 4480, and also exclusive of the expenditure under " The Roads and Bridges Construction Act, 1882," amounting to L 106.298, for which, as hon. members know, no vole is taken in the annual appropriations. Supplies necessary until new Parliament meets.-— I shall ask. the authority of Par liament to w«ue L 150.00 Rills to provide for the deficit in the Consolidated Fund to the 31st March last. Tbene bills will be in addition to tbe L 400.000 at present authorised to be raised in temporary aid ef the revenue. The Depression. — And now, Mr Hamlin, I should like to say a few words about the causes of the depression which j.iev-i'B in the coh.ny. First: The habits < f extravagance, arising out of the wonderful prosperity which, with only slight and temporary checks, we have enjoyed for the last 13 years - habits which our real circumstances never justified us in indulging — if indeed any circumstances could be their justification. Secondly: The class of distributers and middlemen is far too numerous in proportion to our population. There are, no doubt, too many merchants, traders, and agents ; numbers of these are trading upou capital borrowed upon terms which make it impossible for them to do business on a sound basis, and the consequence is that they interfere with and ruin legitimate business of tlie re. ponsible merchant and trader. Thirdly : The extraordinary low prices which hnve obtained during the last year for our clii-f articles of export wool and grain. In conclusion, the deficit is io be regretted, but it is certainly not a matter about which we need feel uny anxiety. • It can be provided for withou' unduly bui*den ; n« any class of the community. ■■■Moreover, our credit never stood hijier than it does in London at the present time, our last one million four per cent, loan realizing nu le^s iban £100 6s 6d per cent;