FINANCIAL STATEMENT

Feilding Star, Volume XII, Issue 5, 26 June 1890, Page 2

FINANCIAL STATEMENT

' 1 The Financial Statement was delivered j in the House last night by Mr Mitchel- , son, in the absence of the Colonial Treasurer, Sir H. Atkinson. Following . are its leading features : — The Committee will be pleased to learn that my anticipation last session of ending the financial , year with a small surplus has more than been realised, and I am sure that this feeling of gratification will be increased when I have shown that this surplus has ' arisen no less from the steady improyement in the condition of the colony than from the large economies and careful administration which the present Parliament inaugurated, and which the Government has carried out. As signs of real and satisfactory progress I may note that our Crown Lands are being rapidly taken up for settlement in small areas, so that our agricultural holdings are increasingat as rapid a rate as they have at any time during our greatest prosperity. Consolidated Fund — Expenditure of year 1889-90 (ordinary revenue). The estimated expenditure for the year 1889-90, including charges under special acts and supplementary estimates, amounted to £4,150,703. The actual expenditure was £4,121,842. There was therefore an unexpended balance of the amount, authorised of £28,861. Revenue of the year 1889-90 (ordinary revenue) i.e., estimated, and my estimate of course included the primage duty, to receive during the year a total ordinary revenue of £4,187,800. The actual amount received was £4,209,---257. The total revenue therefore exceeded the estimate by £21,447. The Customs were less than the Estimates by £49,126 ; stamps exceeded my estimate by £24,755 ; railways by £63,340. The profit for the year of the Public Trust office, amounting to £5,182, has not been brought to credit. The estimated expenditure ot the Land Fund, including supplementary estimates, was £128,149 ; the actual expenditure was £121,919 ; expenditure was therefore less than my own estimate by about £6,230. Of this expenditure there was paid to local bodies for rates on Crown lands £11,684, and £18,159 in respect of receipts from deferred payment lands. The actual receipts were £87,692 as against £136,100. The estimated expenditure having been £121,919 and receipts £87,692; there was a deficiency of £34,227 for the year 89-99. The deficiency would have been less by £14,000 if land to that value, which was sold had been paid for in cash. It will be apparent that the shortcomings of revenue of laud fund to meet costs of administration and survey must nnder such a system be only temporary, and if we are to continue the perpetual lease tenure, as we certainly shall, farther financial provision must be made for some years to come. Financial results for the year. — The ordinary revenue surplus with which we began the year was £27,768. After paying off £50,000 of the deficit of the 31st March '88, and I have just said that the ordinary revenue received was £4,209,247. The amount available to meet expenditure was £4,237,015 ; and total expenditure having been £4,121,841, there was a surplus for the year of L 115,174. This surplus of course includes the primage duty amounting to L 55,826. The final results for the year, after paying what was left unpaid of the deficit of L 128,605, viz., L 78,605, is a balance of L 36.569 with which to begin the current year. Land fund. — I bave said that there is deficiency in land fund of L 34.227, which, added to the deficiency on this account at the beginning of year amounts to total of L 45--,-717. It was thought better to leave intending settlers free to compete on equal terms in selecting for themselves the tenure which would best suit their circumstances — cash purchase, deferred payments or perpetual leases. It is clear that if we are to continue this system of free choice we must face the fact that it will be impossible to carry on settlement of country without large extraneous aid to the land fund. The public debt ou the 31st March, 1890, (gross estimated public debt of colony) amounted to £38,667,950, and accrued sinking funds to £1,383,432. The net public debt was £37,284,518. Of this there remained unexpended about £961,---300. On the Bth of October the Bank of England invited tenders for £2,700,000 N.Z. Gcyernment 3£ per cent, stock repayable at par on Ist January 1940. The price realised proved to be £95. 16s B£d, a result which will yield a saying of £30,000 in annual charge for interest. Public works fund expenditure during the year amounted to £167,513, the principle items of which were roads £84,031, and public buildings £35,472. The unexpected balance at the close of the year was £233,675. There is a balance of £386,895 to the crodit of the North Island Trunk Railway account on 3 1st March last. The Government have under consideration certain proposals with regard to various Harbour Board loans, and an opportunity of discussing them fully will be afforded to the House. Upon 31st March 1889, the Treasury had borrowed £200,000 for making loans under the Government Loans to Local Bodies act, 86, and last year further sums were borrowed to the amount of £50,000, making in all £250,000 at the 31st of March, 1890, Debentures issued for this amount bear 5 per cent, interest, and mature on the Ist of March, 1892. On the 31st of March, 1890, the engagements of the Treasury, Jin respect to these loans, amounted to £14.928, and applications had been received for £39,530. I shall now refer to the provisions of the Government Loans to Local Bodies Act, which relate to the creation of the sinking fund for redemption of debentures issued by the Treasury to provide the money to make loans. In section 45 of the Act it is provided that the sinking ' fund shall consist of such amounts as ] may be annually appropriated from time j to time by the General Assembly, not exceeding 2 per cent, on the amount of the original debt of local bodies, payment to 1 continue for a period of 26 years. It was ■ assumed that money required to make < loans could be borrowed by the Treasury at 4 per cent, and that with a contribution ] of 1 per cent from the consolidated fund ; 1 per cent from 6 per cent paid by local J bodies, a sinking fund of 2 per cent per annum would be created, which, invested at 5 per cent, would at the end of 26 years accumulate to such an amount as would enable the Treasury to repay the money borrowed. The Government has continued the issue of short dated debentures until a fitting time arrives for their redemption by the issue of a 4 per cent, or 3^- per cent loan, when it is proposed j to ask Parliament to make provision for x the sinking fund. Estimated expenditure c and Revenue for the current year. — The ( estimated ordinary expenditure is £4,127,- T 419. The total proposed increase for the •, year in salaries in the^Post and Telegraph \ Departments is £5271, of, which £4471 goes to officers who salaries are; £200 a i year or under. In Education theireis an , increase of £6000. This is less than the { amount which the annual increase of \ scholars for capitation, would give. In t the Native Department an increase of ■, £4400 is entirely owing to the re-appoint- * ( ment of additional judges in the Land \ Court, and expenses of commission under the Act of last session. In working railways there is an additional expenditure • proposed of £18,000. This arises from f additional mileage open for traffic and

increase in cost of iron. In public building there is an , increase of £27,400, mainly for school buildings and a building for <$saf mutes. In Defence there is a small increase. Members will observe there is a large reduction in the Postal and Telegraph Department. This arises from no provision being made for 'Frisco Service after the expiration of the present contract. I regret that the 'Frisco Service is likely to fall through for a time, as the N.S.W. Government have refused to join the subsidy, and I fear there is small hope of the Imperial Goyernment agreeing to pay for the conveyance of mails to and from London and 'Frisco. I cannot believe that we are likely to be long without a good steam service between Auckland and Frisco. The proposed appropriations for the current year are slightly less than the amount voted' last year, the respective totals being L 1,983,334 and L 1,987,23 7; notwithstanding the fact that the Railway Commissioners require LIB,OOO more than they did last year, and that we propose an extra expenditure of L 15,000 for school buildings and LBOOO for an institution for deaf mutes. Land fund. — The total estimated expenditure chargeable against land fund is L 116,557. Ordinary revenue for the year 1890-91. — Government propose to continue the primage duty for another two years for the purpose of providing funds for school and asylum buddings. Tie Government think the time has arrived when the Minister of Education should have more direct control over the vote for school buildings than has hitherto been the case and we Bhall aßk Parliament to amend the law so as to enable the Minister to have an effectiye voice in determining what buildings are necessary j we think, also, that whereever possible future buildings should be of stone or brick in preference to wood. Government have had under consideration during the recesg the question of the incidence of the Property Tax, and cannot see their way to reduce, much less to abandon, the tax in the present state of the finances. That sum is estimated at no less than L 850,000 for the present year. I submitted certain proposals to raise necessary funds to extend the Otago Central Railway and to construct the Puhipuhi forest tramway. The House rejected those proposals, and the Government do not think it their duty to again propose their construction. Government would have been pleased if they could have seen their way to make any proposal to reduce taxations we are, however, convinced that it is hSpossible to make any further appreciable reduction in public expenditure, unless we are prepared to largely curtail the publio conveniences which are now enjoyed. I estimate the total ordinary revenue of the year will be L 4,159,000 upon the present basis of taxation. From Customs I expect to obtain Ll,480,000; from stamps, L 612.000; from railways, L 1,080,000. The latter is the estimate of the Railway Commissioners, and seems te me to be probably under the amount that will be realised. I have estimated the total ordinary expenditure for tbe current year to I amount to £4,127,417, and the estimated revenue to £4,159,000, to which I add the surplus of £36,509, with which I have shown, we began the year after paying off the balance of deficite of £128,---605. We shall therefore, if our estimates are reahsed, have a surplus of £68,092, subject however to a reduction of £20,000, leaving an estimated surplus of £48.092. [Owing to pressure on our space we are compelled to hold over the remainder of the Statement till next issue.] M— «b— r — — ■