The Fielding Star. THURSDAY, JANUARY 5, 1893. The Beginning of the Bursting

Feilding Star, Volume XIV, Issue 84, 5 January 1893, Page 2

The Fielding Star. THURSDAY, JANUARY 5, 1893. The Beginning of the Bursting

ALTHOUc;n the Government may have done a plucky thing in taking over the Cheviot estate, yet it is quite possible that they have done a foolish one. On this subject the Dunedin Star considers it is much to be apprehended that in acquiring this property under the provisions of the Land and Income Assessment Act, 1892 the Government have taken to themselves a " white elephant," which they will be somewhat perplexed to know what to do with. The owners, who are the trustees of the estate of the late Hon. W. Robinson, valued the property at about L 3 2s an acre all round, which considering the situation, and the average quality of the land, seems a very fair price • but the Commissioners piled on another Ss an acre, taking, apparently, a somewhat exaggerated estimate of the value of the improvements. With the 10 per cent added, the sum of L2BG,---240 will have to be paid for the estate — an amount which, we conceive, there will be some difficulty, certainly long delay, in recouping. As a matter of fact, there is not that extensive demand for land which it suits the Minister of Lands to assert. We may presume that so serious a step, involving so heavy an immediate expenditure, has not been taken without his cognisance and the approval of the Cabinet ; and probably the idea is to establish special settlements on a considerable scale, and to dispose of any balance of the area under the perpetual-lease system established by the new Land Act. Very little pecuniary return is therefore to be expected from the outlay. As to finding the funds necessary for the acquirement of land under the Act, it is provided that the Colonial Treasurer shall, upon the Governor's warrant, pay out of the Consolidated Fund, without specific appropriation, all money required to be expended for sucJi purposes. It was hardly, we imagine, anticipated that so large a sum as L 286.240 would have to be paid during the year on one transaction alone ; and since the Consolidated Fund is not a purse of Fortunatus, the question may well suggest itself a.s to where the money is to come from, since it is required, should the owner insist, to be paid " down on the n;iil." The Treasurer, in his Financial .Statement, calculated on a surplus at the end of the present financial year of L 330,277 ; bin this was subject to the Supplementary Estimates, which totalled up to over L 90,000 in services chargeable on the Consolidated Fund alone. Presuming, therefore, that the transactions of the year show that the Treasurer has not taken too sanguine a view in framing his Estimates, the anticipated surplus will be more than absorbed by this purchase of the Cheviot Estate; there will be indeed a deficit of L4G,018, and this without taking into account Wvi unforeseen financial contingencies which invariably occur year by year, and have to be provided for out of " unauthorised expenditure." It may be recollected that the Government took, under th« Public llevuuues Act KSD2, large powers for raising money for iiamediate necessities by Treasury bills ; but any amount so obtained is constituted a first charge on the revenue.