THE FINANCIAL STATEMENT.

Hawke's Bay Times, Volume XII, Issue 504, 29 August 1867, Page 2

THE FINANCIAL STATEMENT.

(From the New Zealand Advertiser.)

Me Fitzheebert began congratulating the House on the great advance made in the direction of the policv of ISG4. Tlie whole management of internal affairs was now in the hands of the Legislature. The problems which were presented to th? financier were, however, of a magnitu s and complexity which impressed him with a greater sen-o of responsibility than he had felt on any of the three previous occasions when he had made a similar state ment. Hie Committee would follow more easily, if he first supplied a thread in the shape of an analysis, of the coursa his statement, would pursue. lie intended, first, to contrast the Lxpenditureof thepas' year with the Estimates—then the actual revenue with that estimated. Ho would proceed next to state tiie expected revenue for the current year; and, fifhr.vards, tin proposed appropriations. He would show the balance sheet of the result of transactions for the year. He would then des cribs the provision for Provinces, the principles of the financial policy proposed for the future, the particular means for carrying it out, namely, the consolidation of loans and the Kevemie Bill—the mode of settling the outstanding debts of the Provinces to the Colony—would then show the necessity for extraordinary sunplv. He would then come to the consideration of the claims of the Imperial Government and the counter-claims of the Colony, and to the consequences of the transactions of 18d3, viz,, tlie mode of dealing with flic allocated debt and tlie confiscated lands. The following table shows tho cotnpuri son of Estimates and Expenditure for the period j ust expired :

The excess on Permanent Charges wjowing to the necessity of paying inle-est on the allocated debt which several Provinces could not meet. The saving on Postal Services was accounted for by the fact that debts against the service were outstanding, and must bo provided for this y ear. The extraordinary Estimates and expenditure had been as follows:

Estimates ISG6-7. £ Cook’s Strait Cable and Telegraph Extension to Auckland ... 38,000 Treasure Bills (removal of Seat of Government) ... ... 11,000 Military settlers ... ... ... 207,000 Liabilities on amount of settlement of Military settlers ... 50,000 Tot il ... 306,000 Actcai, —1853-7 £ Cook's Strait Cable and Telegraph Extension to Auckland ... 11,852 Treasury Bills (removal of Seat of Government) ... ... 11,775 Military Settlers and liabilities on amount of settlement ... 255,743 Total ... 282,370 Tho total ordinary and extraordinary expenditure, estimated and actual, are thus contrasted : Estimate. Actual. £1,3(52,500 £1,341,695 showing a saving on the woole uf£17.,505 The revenues estimated aud raised are seen as !odo«e : Estimate. Actual. £ £ 850.000 ... Customs ... 865,032 4,500 ... Bonded Warehouses 5.325 50,000 ... Stamps ... 33,814 154.000 ... Postal and Miscella. 123,50 l 1,053,000 1,028,005 The Customs and Stamps together forming a very nice approach in estimate and actual receipt. The dcflcicncT was in Postal, Marino, and Grown Grants, There were other sources of revenue employed in (he year—the extraordinary revenue;

Estimate £ £ 150,000 ... Treasury Bills ... 125,000 moo*., {ssaas} ■•«*» 320.G00 298,000 There was a further receipt of £ 17,489 from confiscated lands, but this the Treasurer had not taken into account as revenue, ns the special expenditure on the same account hud absorbed it in interest. The Government still hold Treasury Bills to the Talus of £25,000It was a matter of pride that a correct statement of the total transaction of the year could be made so soon after tha period. The balance stood Receipts Expenditure £ £ 1.025,00f> ... Ordinary ... 1,063,382 315,489 ... Extraordinary... 282,370 1,313,495 ... Total ... 1,345,753 Showing an excess of expenditure over income of a sum of £2,258. Other payments had been made during the year, various deposit funds which had been used as a working ballance on past years had been repaid to the total amount of £24,363. Adding to this the overdrawn account at the hank, £26,631, gives a total of £50,792 not out of a reserve made in estimating the balance of the three milion loan. Tha Colony now receives interest on its deposits in the Bank instead of paying on overdraft, i'he facility with sshieh the Treasurer made these unauthorised payments, showed he saw the need of the provisions for better exchequer control contained in the Revenue Bill. Revenue. £ Customs 870,000 Bonded Warehouses 5,000 -Stamps 75,000 Miscellaneous 134,000 £1,084,000

Those Estimates were moderate, but not panic-striken. A return which he held in uis hand showed (ha progressive condition of the customs revenue to have been very steady ami unchecked from 1867-8, when it was £148,988, to 1866-7, when it was £861,032. The variety of sources and number of places whence revenue was raised made .New Zealand peculiarly free from sudden chocks. A return of gold exported illustrated the source and steady orogress of revenue. In 1865-6 the total export was £2,833,000 In 1866 7, £2,605,000, and the total exports of gold since its first discovery was £13,110,000. A third return showing the exports and imports wonld reassure the sceptical as lo our resources. The values for last year were exports, £4,578,009; imports, £0,111,000.

It was impossible to increase taxation ; as to the question of reducing it, ho would not ansvtvr that directly. The Government were not prepared to say that there was not an alternative of that kind, but charged witli the maintenance of the in« stitudons of the country, they could not see how taxation could be reduced. £ Civil list 27,500 Permanent Charges 305.81 S Government Domain 4,37 S Public Departments 45,025 Law and Justice 60,892 Postal 155,211 Customs... 41,830 Native ... 21,058 Militia 28,053 Miscellaneous 39,104 £731,173 This is attained by removing defence to extraordinary sources of revenue, and also by a very close economy in the departments. In placing defence on extraordi* nary funds the Government must state, however, that if emergencies demanded ihov would use every means cf the Colony following table, showing in round numbers to secure the defence of the country. Tire the cost of defence and native offices for nine years exhibits the culmination and decrease of this expenditure, and should relieve the anxiety of the Colony on that score:—

The total estimated income was €1,034,01)0, and the general expenditure £734,000. And now we come to the provision for provinces, a question cf manner as well as measure. Mr Intzherbert here quoted from returns showing that, permanor.t charges apart, the giowth of the General Government had not been at a rate proportioned to the expenditure of the colony. The provincial system had increased, and it was remarkable that in the years of increased taxation —1855-6-7 —the provinces had been overpaid, whilst in previous years they had been underpaid. The total extra Customs received in thoss Tears was £546,000 —add lb® stamps, £33,: 00, wc have £sSoj'oo extra taxation. The provincial receipts in those rears were £626,000, an amount which could not have been paid but for the extra taxation. The total surplus revenue paid the crovinces since 1858 was £i,755,50i, being £183,689 more than due by law, and that; excess is the amount of their debt-

The proposal of the Government was to consolidate ail the revenues and set apart half the consolidated fund for charged expenditure and provincial appropriations. The half would be, for this proposed was £540,207, leaving a vcrj ■mall margin. Deduct from the provincial half the expenditure proposed to be provincially charged, of £904,000, there remains whilst by the Surplus [Revenues •Act they would be entitled to £324,000. The proposal was favorable in measure and pose, and the Government only made ii oelieving that, as the provincial share ui revenue would be assured, they would give equal security to outlying districts and Hoad Hoards. Mr Fifzherbert then went to the consideration of the Loan Consolidation Bill, which it would, he said, be a gross fraud to pass unless it was intended really to maintain an effective Colonial Government. He discussed this proposal, and the Revenue Bill at great length.

Estimates Actual Expen. £ £ 27,.'00 .. Current List 27.56(3 2 v(»,SS0 .. Permanent Charges. 282,472 7,--8 .. Dovt. Domains 2,816 36,500 .. Public Dept*. 43,567 61.81-3 .. Law and Justice ... 50,4 S 143,000 .. Postal 122,000 20,9S6 ... Natire 23,751 46.322 .. Customs 40,891 30,922 .. Miscellaneous 35,552 70,000 .. Defence 71,436 15,000 .. Supplementary 9,00' 318,750 .. Provincial Surplus.. 320,386 Unauthorised 6,568 Extra to Provinces. 18,360 1,057,000 Totals ... 1,063,000

Defence Native 1S3S-59 ... £1,414 ... £11,000 1859-60 ... 27,000 17,000 1S60-G1 ... 02,000 ... 17,000 1S61-G2 ... 54,000 ... 25,000 1852-CS ... 203,000 ... 53,000 1S63-G4 ... 353,500 ... 52,000 1SC4-G5 ... 830,000 ... GO,000 ISoo-Cii ... 473,000 ... 89,006 1SGG-67 ... 327,000 ... 23,000