Financial Statement.

Feilding Star, Volume XVII, Issue 27, 31 July 1895, Page 2

Financial Statement.

tPEB FilßB« ASSOCIATION!. Wellington, July 30. I The following is a summary of the Financial Statement delivered in the House this evening by the Colonial Treasurer : — ' In congratulating the House upon the satisfactory results of the year's finance, the Treasurer states that bearing in mind the low prices obtained for our staple products and the great i eduction in the spending power of the people, it is cheering to find that financially the colony accupies a strong position. Revenue account for the year. — The estimate of revenue for the year was placed at £4,235,000, exclusive of £117,800 to be received to provide for the accretions of sinking funds payable during the year. The actual receipts came to £4,281,995, or £46,995 in excess of the estimate. This extirnate had been prepared in view of a falling revenue and had accordingly been reduced by £133,---538 below the actual receipts of the preceding year ; yet the revenue had exceeded the Treasurer's forecast to the extent of £86,500. A deficiency of over £55,000 had been allowed for in the Customs receipts. This, however, had been exceeded by £30,215, due no doubt to the caution and the hesitation exhibited by importers, who narrowed their orders down to the smallest possible margin, The Treasurer accounts for the falling off of £17,251 in the railway receipts cbi( fly by a great reduction in the grain trufßc, the export of grain having been 2,000,000 bushels less i ban that of the previous year; and in tho damage done to the railway lines by floods. There were, however, items of revenue on which there was a considerable increase over the estimate— notablj' from tho sale of stamps (which showed an increase of £39,000); Land and Income Tax (which showed an increase of £20,000) and Territorial receipts (\vh eh showed an increase of £26,000 over the estimate). As compared with the estimates the total amount underspent on the year's Iransaction3 was £83,000, the principal savings being effected in interest and sinking funds charges £27.000, Postal and Telegraph £15,000 ; Treaeury, miscellaneous for stamp duty, £9,000. On the other hand £4,592 wns over expended in respect of subsidies under the Hospital and Charitable Institutions Act, owing to extra contributions to Hospitals and Charitable Institutions. Results of the Ye^r, 1894 95.— 0n the 31st March, 1594, the books were closed with a net surplus of £290,238, to which add the receipts of the past year amounting to £4,406,515, making a total of £4,696,753. Deducting therefrom the ordinary expenditure amounting to £4,266,729, there remained a balance of £430,024, out of which the amount of £250,000 was applied in aid of the Public Works Fund, leaving a net surplus of £180,024 at the close of the financial year — a result which must be gratifying to members, and must add to the general stability of the country. Public Works Fund.— £2so,ooo had during the last year been provided by revenue, and other receipts amounted to £63,049. The expenditure on Public Works amounted to £307,182. Adding the receipts, £313,049, to the balance, £263,658, at the commencement of the year, and deducting £308,182 of expenditure, there remained a balance of £268,525 on the 31st March last, against which £229,---076 of liabilities were outstanding. The loan money belonging to the North Island Main Trunk railway line was steadily disappearing. The balance to commence the year with was £79,197, to which was added a small recovery of £12 belonging to the former year's expenditure. On the other side had been charged a sum of £52,604, leaving a cash balance at the close of the year of £29,604, against which £14,---097 of liabilities had been incurred. The Conversion Account — The conversion operations of last year resulted in a further issue of £787,258 10s of 3£ per cent inscribed stock, which towards the close of the year began to sell at over par. The inscription of this stock enabled £398,900 o? various debentures to be converted and £283,000 of loans to be redeemed, leaving (after paying expenses) a balance of £40,193, which will be used to complete the operations of the loans to local bodies account. Up to 31st March last the amount raised for granting loans to local bodies was £648,082 and for grants for roadiag £116,918. These amounts with the sum of £89,800 due to public works amounted to a total of £854,800. Experience had shown that owing to absentees, to the indifference of ratepayers and to other causes, the existing law exhibited defects and difficulties which should be removed, and during tho present session an attempt will be made to consolidate and amend the existing Acte, The principal feature of the proposal will be that the machinery to carry out all the steps required to obtain a loan will be found embodied iv a Bill. New Zealand Consols AccountThere had been twenty deposits inscribed amounting to the sum of £158,025, of which £158,000, had been myested in securities yielding 4 per cent rate of interest. Of this turn £150,000 was insiiibcd by the Bank cf New Zealand as a special invest ment of a portion of tho second guaranteed miLion. At the time the investment, 7?as made the Bank of Neve Zealand wa? desirous of finding editable investments in New Zaaland, Government securities for the balance' of the guaranteed million, iv order that they might be held with coin as a reserve against liabilities in accordance with law. Public Debt.— The public debt was increased during the year by the sum of £560,549. It now st>od at a total of L 40,386,964. Of the inprease over L 400,000 was for the purpose of making- advances to local bodies, improvement of land, purchase of Native land, and land for settlement. The interest which theYTreasury had to pay up on these loah.B was considerably exceeded by the Receipts derived from, the transactions "fading to the raising of the loans.. The! net debt on March 31st was L 30 J 635,>032, or an increase of L760,51l as against the previous year. ' "\ Industries and Comraerpe 4rTo assist the industries of the coloW the Government hive' been making en? quiries as to markets for our sujrplus products. An expert waa senfcl to ' t

LoDdon to push the timber trade, and by the reports received from the Agent General there is no doubt that a considerable trade can be opened up in New Zealand woods for street paving, carriage building, furniture making, and other purposes. Land and Income Tax. — The revenue collected during the year was L 370.000, being L 20.000 :-a excess of tho estimate. The amount of Land Tax outstanding on March 31st last was L 472, all of which was made up of sums for various reasons not immediately recoverable. In order to remedy defects in the law relating to the taxing of Native lands occupied by European tenants, Government have decided to bring in en amendment of the Act. Former Colonial Treasurers collected taxes at dates to suit the requirements of the colony, and this without the adverse and extraordinary criticisms to which the Colonial Treasurer's action last year was subjected. However, as unexpected animadversions, calculated to seriously effcci the financial position of the colony weie made apaiast the alteration in !he date of col«ct : .on of the Land Tax last year, th 9 Colonial Treasurer deems it essential t > take steps to prevent possibility of such adverse criticism again being possible from similar causes. Un 'er these circumstances he deems it advisable in the best interests of the country to prepare a measure to permanently fix the date for collecting this tax. Department of Agriculture. — Though prices obtained during last year for all products had been lower than'for many years, yet the impetus that is now being given to the dairy industry by cool „ storage and a proper system of grading promises to produce far better results. During the coming year Government will start dairy schools with the view of further improving the industry. Shipping live stock and chilled meat have now been successfully demonstrated. Post Office Sayings Bank. — During the year the withdrawal* had exceeded deposits by £15,762 Is sd. Government Insurance. — The funds at present date amount to £2,300,000. The new business for the year amounted to £729,013. Public Trust Office.— The best index "* to public confidence in the office is in the increase in number and value of estates placed in the office by .wills or instruments of trust, and these properties at the close of the financial year had increased in number from 371 to 392, and in value from £'548.284 to £'586,183. Advances to Settlers. — The total applications to Jane 30th dealt with by the Board were 1552 for £559,855, and of these 965 were granted for loans amounting to £354,909. ~ . { Improved Farm Settlements.— Up to the present date eighteen settlements have been formed, the area set aside being 21,202 acres, which "will be alloted to 193 settlers, but up to the 31st March the actual allotment of 9730 acres to 107 . settlers only bad been completed. The •* area already felled is 4048 acres, and the area grassed is 1469 acres. The amount . advanced to settlers up to the 31st March was £"5698 4s lid, and the value of the improvements on the land, including Government advances, was £6,964' 19s 3d. * . Land for Settlements Act. — The estates purchased and arranged to be purchased, number 18, with a total area of 53,701 acres at an estimated cost of £195,561 2s 4d, places whatever additional cost there may be for surveys and - a little roading. Inscribed Stock — A saving had been effected of £3,600 per annum on the cost of management of our inscribed stock with the Bank of England. Extinguishment of Public Debt — Referring to the advantages that would follow a general conversation of our stock into three per cents the Treasurer stated that the large annual saving in interest thus obtained could be utilised to repay our indebtedness, and it would give greater stability to this country, were the Government when the right time arrives to adopt an effective system for the extinction of our indebtedness. The Million and a Half Loan.— The result was found to be satisfactory. Application for £5,960,400 at prices varying from £100 to £90 were sent in, and of these about 33 per cent of the tenders at £94 8s were accepted, those above that price being allotted in full. .The average price realised was £94 8s 9d. and the amount payable was £1,416,601 2s. Local Bodies Loans. — Government propose, after due notice has been given, to readjust the lending rates of the Government departments, and to take the necessary steps to relieve such local bodies as have funds provided from these institutions for carrying on their finances. Local Government. — The Premier will at an early date submit for consideration of the House important proposals for improvement of local Government in this colony. It was proposed to take over the main roads of the Colony, and relieve local bodies entirely of this work. Bank Assets Company. -I deem it my duty to state that in my opinion the present position of the Bank of New Zealand Estates Company is far from satisfactory, and I am convinced that it will be advisable at an early date to seriously consider in what manner this intimate relation can be modified. Estimated Expenditure for 1895-96. — Civil list, £25,700 ; interest and sinking fund, £1,694,605; under special Acts, £331,590 ; Legislative Departments, £17,385 ; Colonial Secretary's, £70,110 ; Colonial Treasurer's, £25,550 ; justice, J £124,186 ; Postal and Telegraph, £335,---017; customs and marine, £64,186; stamps and deeds, £20,560 ; Minister of Education's, £416,814 ; lunacy and charitable, £52,022 ; labor, £6260 ; agriculture, £44,735 ; mines, £18,289 ; working railways, £738,940 ; public buildings, domains, and machinery, £50,500 ; defence, £64,419 ; police, £200,451 ; lands and surveys, £129,634 ; rates on Crown Land, £900; Total, £4,331,843. Estimated Revenue. — Customs, Ll,« 560,000; stamps (including postal cash receipts), L 644,30 0; land and income tax, L 350.00 0; beer duty, L 61.00 0"; railways, Ll,155,000; registration and other fees, L 50.000; marine, L 21.500; miscellaneous, L 65,000; territorial revenue, L 290.00 0; debentures for sinking fund increase, L.145,00Q. Total — L.4,341,200. ' The Treasurer concluded by saying that he looked forward with confidence and hope to the future of New Zealand, relying upon the grit and pluck of his fellow colonists to overcome any temporary difficulties that may arise.