NEW ZEALAND PARLIAMENT.

Hawke's Bay Times, Volume 19, Issue 1407, 21 August 1872, Page 3

NEW ZEALAND PARLIAMENT.

TUESDAY, AUGUST 20. SPECIAL GOVERNMENT TELEGRAPHIC SUMMARY. PUBLIC WORKS STATEMENT. Mr. Ormond made a Public Works Statement to-day. From the initiation of the policy to the 30th of June last, the total amount to the credit of the Public Works Fund has been £801,023, which has been reduced by charges, interest, &c, to £719,957. The expenditure had amounted to £644,273, leaving an unexpended balance of £75,684. Amongst other things, he mentioned that 550 miles of roads had been opened in the North Island, besides others in progress, at a cost of £121,868. He also stated that 403,815 acres of native land had been purchasd, at a cost of £49,664, including advances on blocks still under negotiation. The departmental expenses had only been £16,610, including £7184 for engineers. FINANCIAL STATEMENT. Note. — In the following abstract, anion ids of money are for convenience, generally stated hi round numbers. The Colonial Treasurer (Mr. Vogel) delivered the Financial Statement this evening. He commenced by remarking that he had a more agreeable task than that which had devolved upon him last year, for he had not now to speak of deficiencies or of impaired revenue. When, last session, he reviewed the results of the year 1870-71, he led the committee to understand that, on the close of the accounts for that year, there would be a deficiency of £76,912, together with £60,000 of overdraft, making a total anticipated deficiency of £136,000. He was glad to say that the deficiency proved to be only £122,000, or £13,000 less than was anticipated, that reduction being mainly owing to savings in connection with the reserve fund. The House authorised the issue of Treasury Bills for £45,000, at one year's date, and a like amount at two years' date, partially to cover the deficiency, the balance to come out of current revenue. It would be found that the current revenue of the past year had performed its part of the bargain, and provision would be made this year out of the revenue to meet the £45,000 Treasury Bills due this year. With respect to loans, £66,000 under the Wellington Debts Act had been negotiated in Sydney at a clear nett premium of 2 per cent. He believed that that was the highest amount ever obtained by public negotiation for any of the colony's debentures unguaranteed by the Imperial Government. Of the Immigration and Public Works Loan, £850,000 had been negotiated, and of the Defence and other purposes loan, £150,0C0, making together £1,000,000. That amount had been negotiated at home at a premium of 4s 2d, after deducting accrued interest, which must be considered a very favorable negotiation. Inclusive of the £150,000 recently negotiated, there had been raised under the defence and other purposes loan £635,000, of which there was charged under the second schedule of the Act: To Auckland £50,000 ; to Taranaki £6,000 ; to Wellington £17,000, and to Otago £79,000. By turning to the second schedule of the Act hon. members Avould at once see the nature of the various payments under it. The total under the schedule was £163,436; under schedule 1 there has been expended £295,580, together with £18,327 for discount and charges, making together a total of £471,352, and leaving a balance of £158,000 available for expenditure. Of this £158,000, £150,000 was in cash in London, £309 in cash in the colony, and £7,900 under advance in the colony of the Immigration and Public Works Loan; there had been altogether £1,600,000 raised; adding to that sum £37,294, being moiety of the stamp duties, the total was £1,637,295. Of that sum £711,611 was expended up to the 30th June last, leaving a balance of £925,684, of which £850,000 was in London on the 30th June, £40,666 was in the colony in cash, and £35,017 was under advance. The items of expenditure under the Immigration and Public Works Loan were :—lnterest and sinking fund, £29,000; departmental expenses, £24,000; roads in North Island, £120,000; railways, £241,000; water supply, £2,000 ; purchase of land in the North Island, £49,000; immigration, £42,000; telegraph, £58,000; coal mines, £SOO ; payments to Road Boards and Provinces, £100,000; Greymouth protective works, £3,000 ; discount and charges, £39,000. Before concluding his remarks concerning the loans, he wished hon. members to understand that provision was made for payment during the year of £66,000 sinking fund on colonial loans, and £49,000 on provincial loans. Those payments represented the sum which the colony and the provinces provided for the reduction of the public debt. On the 30th June last there was £440,000 in the trust fund, of which

£3B7,ooo was invested, and £50,000 in cash. On the 30th June, 1871, the amount in the trust fund was £343,000, so that it had increased during the year by £96,000. The Post-office Savings Bank fund had increased from £294,000 in 1871, to £365,000 in 1872. Those accounts, it should he clearly understood, were kept entirely distinct from ordinary revenue and ordinary payments,, and he had taken the strictest precaution, to secure that the interest-bearing accounts were sufficiently covered for alt accrued interest. He would next speak of the revenue of the year 1871-72. The actual revenue of the year was £1,007,000, against £990,000 estimated, and £936,000, the actual receipts of the previous year. There was, therefore, an increase of £71,000 over the actual receipts of 18701871, and of £17,000 over the Estimates. The Customs Revenue shewed an increase of £25,000 on the Estimates, and of £42,000 over the amount actually received during the previous year. The exports during the year had exceeded those of the previous year by £1,181,000, and the imports showed an increase of £437,000. Amongst the exports, gold increased £135,000 over previous year, and wool shewed a considerable increase, both in quality and value. The StampDuties had yielded £SOOO less than was estimated, but on the Postal Revenue there was an increase of £2OOO over the estimates, and the receipts of the Telegraph Department showed a small increase ; the total ordinary revenue o£" the year being £1,007,000. There was to be added on account of credits to votes £7,000, Treasury bills, £90,000, deficiency bills, £IOO,OOO, making the total receipts of the year £1,199,000. Still, in addition, there were assets amounting to £62,000, so that, with receipts and assets, the total for the year amounted to £1,261,000. The year's increase as regarded revenue and the events of the year as a whole showed a revival of prosperity in the colony. Gold-mining was improving; wool increasing in value; the laud revenue had been largely increased; building was going on all over the colony, not only as regarded dwellinghouses, but as regarded erections for business and manufacturing purposes, and generally much more attention was being given to manufactures of various kinds. With respect to agriculture, he was under the impression that the State did not know as much of what was really being done, or give to it the assistance that ought to be given. During the five years ending 1871, there had been a continuous increase in the value as per head of the population of the agricultural produce exported from the colony. The expenditure during the past year for colonial charges was, according to the appropriation, £565,000, Supplementary expenditure upon colonial accounts amounted to £35,000 ; capitation allowance to provinces, £200,000; excess of payments to provinces, £31,000 ; deficiency bill paid off, £60,000; liabilities from 1870-71, £62,000 ; payment to special fund on account of a liability of the previous year, £20,000; half amount of stamp duties paid to immigration and public works account, £37,000; those sums made a total of £1,014,000; there were still due liabilities on account of interest due in Sydney on the Ist July, and interest and sinking fund payable in London up to 15th July, amounting to £109,000 ; reserve fund, £14,000 ; miscellaneous, £13,000; deficiency bills £IOO,OOO. Adding all these items together there was a total of £1,250,000 expenditure, which, deducted from the total amount of the revenue, left a balance of £IO,OOO with which to commence 1872-73. Stating the matter in another way, the figures stood thus; —Assets, £-347,000 against liabilities to the amount of £336,000, thus leaving the same balance of rather more than £IO,OOO with which to commence the year. It was to be observed that the full amount authorised to be issued as deficiency bills, namely, £IOO,OOO, had been issued; but the greater portion of the amount did not bear interest, being entirely a nominal overdraft at the bank. £40,000 of the amount has been taken by the trust fund. Some objection was stated last year to allowing the Government to issue £IOO,OOO of deficiency bills, but in reality it was of no assistance to the revenue. The greater portion of it was represented by advances outstanding from the consolidated fund. The full amount was more than represented in the assets. Hon. members would understand that, after paying the deficiency bills, after providing for the unauthorised expenditure of last year, after providing for the full expenditure of the year, after providing for the reserve fund and for all the liabilities and engagements known to the Treasury—after having, in fact, provided for interest and sinking fund due iu London up to the 15th of July,

pr fifteen days beyond the close of the financial year, there still regained a balance jpf £10,500 with \vhich to commence the year 1872-3. The Treasurer next described the proposed changes in the system of keeping the public accounts. According to the plan which would be. submitted, the Controller-General and the Auditor-General would be associated together as Commissioners of Audit, and the Paymaster-General's account would be abolished. The new system had already been initiated to some extent, although it would impose on the Treasury an amount of check to which it had not hitherto been subjected. The department would learn to accustom itself to that check- The new system would answer the double purpose of securing the full authority of Parliament over the expenditure, and of enabling accounts to be inade up more easily than hitherto. He had prepared some interesting statistics, comparing New Zealand with other countries. Taking the year 1869, which was the latest for which returns could be found, it appeared that the revenue of the United Kingdom Avas £65,000,000, of which less than £24,000,000 were obtained under the Customs, and £20,000,000, the ainount of the excise, represented the duties on spirits during same year. The total amount collected in New Zealand, including the taxes collected by the provinces, was £912,000 ; if there was the same taxation in New Zealand as existed in Great Britain, although the English Customs tariff would not of itself yield so much as that of the colony, the total revenue would be much larger than it was at present; stamp duties in the United Kingdom represented 6s per head of the population, or nearly fifty per cent, more than in NeAV Zealand. A comparison of the quantities of high duty goods consumed in New Zealand and in the United Kingdom shewed conclusively the wealthier comparative condition of the colony ; of spirits there was consumed in the United Kingdom per head of the population per year under one gallon, but in New Zealand the average was two and one-tenth gallons ; tobacco one and threetenths' pounds per head in the United Kingdom; in New Zealand two and sixtentns pounds per head; wine, fivetenths of a gallon per head in Great Britain against six-tenths in New Zealand ; tea, three and four-tenths pounds in the United Kingdom against seven and qne-tenth pounds in New Zealand ; coffee a little under one pound per head in the United Kingdom as against a little over two pounds per head in New Zealand ; sugar forty-six pounds per head in the United Kingdom against sixtyseven pounds in New Zealand. The English tariff would have yielded in New Zealand £643,000, as against £823,000 actually obtained here for customs duties; but if other taxation bore the same proportion to the customs duties here as in the United Kingdom, the total revenue of New Zealand would have been £1,200,000 'in 1869 as against £894,000 actually received during that year : but besides this, the locaj taxation in the United Kingdom amounted to over fifty per cent, of the general taxation, while in New Zealand the local taxation was very much less. The secret of apparent heavy taxation in this colony was to be found in the fact that the rate per head of value of imports and exports was considerably higher than it was in the United Kingdom during 1869. The value of imports into the United Kingdom represented £9 14s 4d per head of the population, and the exports represented the yalue o.f £7 16s per head; but in New Zealand, during the same year, the imports represented £lB 4s per head, and the exports £ls 9s per head. Honorable members would recollect that our imports represented not merely consumable or perishable goods, but articles of lasting value and means of increasing wealth, During the five years ending 1871, the total value of our imports was twenty-four millions, of which £5,600,000 was value of non-con-sumable articles, so that to that ainount articles of permanent value and means of increasing wealth were added to. the colony. By another return it appeared that for the year ending April 1, 1872, the value of imports into Great Britain, less value of re-exports, represented £'B 3s per head of the population, whilst in New Zealand during the same year, and under same conditions, imports represented £ls 6s per head. The British produce and manufacture exported from the I r nitecl Kingdom represented a value equal to £6 6,s per head, but the valine of New Zealand produce exported from the colony represented 16s per head. During the same year the post-office revenue in the United Kingdom was equal to 2s lid per head of the population, as against 3s 4d per head in £{ew Zealand; and the telegraph revenue amounted to s,jd per head in the former case, against Is 9d in the latter. The population of England and Wales in 1861 showed a proportion pf males between the ages of IC) and 65, (mud to 28 per cent., whilst in I\e\v Zea-

land in 1871 the proportion-between those ages was 37 per cent. Turning to the neighboring colonies, it appeared the percentage of persons between the ages of 21 and 40 was 38 per cent., as against 29 : per cent, in New South Wales, and 29 in Victoria. The increase of population during the ten years ending 1871 was in New Zealand equal to 165 per cent., as against 46 per cent, in New South Wales, and 36 per cent, in Victoria. During the same ten years, the increase in population between the ages of 21 and 40 was 162 per cent, in New Zealand, and 38 per cent, in New South Wales, while in Victoria there was actually a decrease of 10 per cent. A comparison of the exports and imports showed most favorably for New Zealand. Leaving on one side imports re-exported of the value of re-exports, the result was—Victoria, £l4 4s per head; NeAV South AVales, £l2 9s; New Zealand £2l 16s per head, or if the native population were included, £lB 4s per head. Taking exports, the figures were —Victoria, £l4 10s per head: New South Wales, £l2 16s per head; New Zealand, £l9 2s per head, or, including the native population, £l6 8s per head. If the principal products of the colonies were considered, the results were more strikingly favorable to New Zealand. Thus, upon an * average of the five years ending 1871, New Zealand exported gold to the amount of £lO 8s per head per annum of the population, against £7 19s in the case of Victoria, and 10s in that of New South AVales. For the same period, New Zealand's average export of wool was equivalent to £6 9s per head, as against £5 7s for Victoria, and £4 19s for NeAV South Wales. The exports of agricultural produce and timber from New Zealand for the same period was equal to 13s per head of the population per year, but from A r ictoria those exports averaged only 3s 4d per head, and from New South AVales 10s 6d per head. A further sum must be added in the case of this colony, for flax, the exports of which, including the native population, Avere equal to 4s Id per head.

Much had been said and written respecting New Zealand's oppressive customs' tariff; but if the Victorian rates, including ad valorem duties, had existed here, and if the values were entered the same as at present, we should have raised in customs' revenue, during 1871, £78,000 against £731,000, Avhich Ave actually raised. That disposed of the allegation as to higher rate of taxation in Nbav Zealand as compared with Victoria. It was to be borne in mind that the native question had cost NeAV Zealand £5,000,000, in the shape of expenditure, more than would be required in a colony situated like A r ictoria, and that fact shewed how great the resources of this colony really were. It was alleged that the cost of Government here Avas heavy ; of course the rate per head of that cost was large, because the population was small, as it Avas especially to be remembered that here the smallest aggregation of population asked, and expected to receiAe, all the conveniences Avhich in older countries were only expected by large communities; still the comparison of the departmental cost of Government Avas favorable to New Zealand. Taking the financial year 1871-72 the Ayhole expenditure in New Zealand, exclusive of interest and sinking fund, amounted to £594,000, and the expenditure of the several Provincial Governments for Civil Service purposes, including education, police, gaols, harbor and miscellaneous, but excluding public works, Avas £251,000. Together those sums made a total of £846,000, against an expenditure in Victoria for like purposes 0f£1,415,000. Turning to the proposed expenditure for 1872-3, the total amount on the estimates was £933,830, shoAving an increase of £21,000 on the appropriations for 18711872. That increase Avas principally represented by increase in permanent charges, such as' £SOOO for interest on £90,000 of Treasury bills, and £II,OOO interest for Defence and other purposes loan. Other items going toAvards the increase were the additional amount for members' expenses, cost of buildings, now become a colonial charge, and the expenditure on account of Manakau lighthouse. There was also an increase in the expenditure of some of the departments, such as the Telegraph and Land Registry. lion, members, in {looking through the Estimates, must decide for themselves, what they would consider as reduction in expenditure fairly coming under the head of retrenchment, or under that of reductions arising from there not being necessity to continue certain services or officers. To expenditure set down in estimates there must be added £208,000 for provincial capitation allowance, as against £200,0Q0 last year ; moiety of Stamp Duties receipts to be paid to the Public AVorks Fund; £40,000 Treasury bills falling due during the year, £45,000 being the second instalment of the deficiency stated last year, and leaving only £45,000 to be cleared off next year. There must also be added a sum of £21,000, which it was proposed to pay to the immigration and Public Works

fund, in addition to onehalf of the stamp duties, which had been paid over to that account—the £21,000 being calculated to represent fairly the amount ■ of'interest and sinking fund on the payments made for works completed, and on final pay* ments. This would make a total expenditure of £1,060,000. It should be remembered that the capitation allowance to provinces represented £B,OOO more than was paid last year. It was proposed also to relieve the provinces from payments of £1,900, a year, for the salaries of Provincial Auditors, and £23,000 a year, the cost of inland mail carriage. The sums together would represent a payment of £33,000 out of the consolidated revenue, and on account of the provinces, more than was paid last year. It was not proposed to continue the extraordinary aid of £50,000, which was last year granted to the provinces in consideration of its being alleged that there were engagements to meet which required that amount; but £50,000, being the same as last year, would again be paid to Road Boards. The estimated total revenue of the year was £1,07G,000. The principal items were—Customs, £820,000; stamps, £BO,OOO ; postal, £50,000; telegraph, £33,000; judicial fees and fines, £32,000. It was estimated that the stamps would this year yield £BO,OOO, although several remissions would be proposed, namely, the annual license fee on companies for the promoting of industries and colonisation, such as meat-preserving companies, saw-mill companies, steamboat companies, tramway companies, immigration companies, public hall companies, and fishery companies. It would also be proposed to remit the stamp duty upon the cheques of friendly societies, and upon receipts given them for monies disbursed by them, and to remit duty on all conveyances of land in trust for religious, charitable, and educational purposes. It would also be proposed that the stamps on receipts should be reduced to one penny. The postal revenue was estimated at £3,000 more than last year, notwithstanding the contemplated reduction of the postage on newspapers to one halfpenny ; so many newspapers were now sent by coach, which would, no doubt, be sent through the post under the reduced rate, that it is not considered the reduction would diminish the revenue of the department. The total estimated revenue, then, was £1,076,000, or an increase of £86,000 on the estimate, and of £68,000 on the actual receipts last year. Adding £10,50 \ the amount of the surplus with which the year was commenced, there was a total of £1,086,000, and deducting the total of the proposed expenditure, £1,060,000, there would remain £25,000 surplus upon the year. A portion of that surplus would be required to meet supplementary estimates and unauthorised expenditure. It must also be remembered that when the estimates were commenced, the report of the Select Committee on Public Buildings had not been received, which, report contained a recommendation that ft considerable sum should be expended on the repair of build*. ings. Provision for that expenditure was, of course, not included in the estimates. On the other hand, there would certainly be during the year savings on votes, and he was inclined to think that if the Ilquse should desire that further payment should be made in aid of immigration and public works account, such payment could be made out of the surplus. In conclusion, he thought he need not apologise for the paucity of novel features and new proposals in the Budget. After the changes during the last three years, it was gratifying to be able now to dispense with further large alterations,. This was the fourth consecutive session in which he had made the Financial Statement. When he considered the period covered by those statements, he. could not but congratulate the committee upon the present improved condition of affairs in the colony, lie hoped that he had avoided creating in the minds of the committee anything like the impression that the Government took credit not belonging to them. The great revival of prosperity in the colony was due to a power higher than that of kings or people ; all that the Government claimed was that when there was a disposition to despondency, they set themselves to do what seemed best calculated to restore confidence, and they called upon the people not to be discouraged but to arm themselves to contend Avith their difficulties, and to hope for a brighter future. That the future had shown itself in such bright colors, Avas due to. a power beyond all Governments.

The Treasurer concluded by moving a resolution —" That it was expedient to reduce the stamp duty on receipts to one penny." The resolution Avas agreed to by the committee, and was reported to the House and adopted. The House then adjourned. The delivery of the Statement occupied two hours and a quarter.