FINANCIAL STATEMENT

Hokitika Guardian, 16 August 1922, Page 4

FINANCIAL STATEMENT

(Pci- favour of Government). \Vfet/‘rii\Gi’6N, Aug 15.

In Committee rif Supply, the Rt Hon. W. F. Sthssey, P.C., Minister of Finance delivered his statement nt 7,30 ;p_,m.

Mt Malcolm .—I have the honour io submit the annual statement ol the finances of the Dominion as at the 31st March, 1922, together with inv proposals foil tile current financial year. .

The total leyemfc of the Consolidated Fund for' the year 1921-22'amount-ed to .£28,127,007, whilst the expendi-. tore for the same period totalled -£28,466,838 ,the difference beihg Vhet. by the utilisation of a portion of the excess of Customs revenue collected during the previous year. The revenue for the year was estimated at -£28,000,000 but the amount colteeto'd was £127.007 'in excess of the estimate, of £6,1'38,955 below the revenue of the previous financial yeai.

The tleerens’e ftt the Customs revenue 'of £8,3*13;290 was aVitieipfited, and justifies the provision made for applying the excess Customs revenue collected during the -yefti- f. 920-21 towards adjusting the 'disturbance in the equilibrium due to over importation.

EXPENDITURE. The expenditue under the permanent and annual appropriations amount ed to £28,466,838, or £886,516 .less than tiie amount appropriated by Parliament. It .will he remembered that after a careful examination by the Public Accounts Committee the estiates ns originally submitted were reduced hv £260,116.

Tt is evident that the economies intro'dtfce'd by the 'GovefnWeht are be-

ginning to take effect, ahd I am glad to be able to announce that the rapid annual increase in expenditure has been effectively checked.

Deducting the increases for which the war is directly and indirectly responsible—viz., £7,034,218—t1'ie net increase is £1,003,854, of which £440,838 is due to growth of population and increased pension liability. PUBLIC WORKS FUND.

The expenditure upon public works

amounted to £5,461.407 ,ov £2,320,210 over the expenditure for the year lOLffVffi. '

fThe expenditure for the year was 1.-i'rgely increased in order to provide a substantial measure of relief in connection with the unoihjpWrnent difficulty. I propose to supplement the.

Public- Works and development accounts by transferring £1.250,000 of the accumulated surpluses and tlnneffect shvmg of £25.000 including sinking fund and flotation charges. redemptions and renewals.

The loans which matured during the year amounted to £7.704,990. to which must be added £42,740, matured loans for which debenture’s were

not presented up (<> the 31st March, iffl’E making a total of £7,717,730. Of this sum, debentures amounting to

£6,244.430 were redeemed, and £4,496,625 renewed a't rates of interest varying from 4J to 6 per cent. Moneys fdr redemption purposes were obtained as follows: £560,011 from 'Consolidated Fund. £2,683,130 from the public

and other sources, and £1,289 from sinking funds set free.

Matured debentures ntnountihg to £6,075 remained mlpresented at the 81st March. 1922.

As the advent ages «f inscribed stock over hearer bonds become more appreciated by investors, the conveisions into stock tend to increase, as the following statement will show: 1920- amount converted, £-'99,700: 1921- amount, converted, £749.100.

CUSTOMS DEPARTMENT. ■The estimated revenue from Customs diiti?r, including excise ! >eor dutv. during the financial year ended ':llst Marcli, 1922 was £5,40!).000 the amount realized £5,554 ,331. The number of gnlluns of beer brew-

ed in New Zealand during the financial year was 13,069,777 gallons. This 'was a decrease of 1 849 gilhnu from the quantity brewed during the financial year 1920-21. The value of our imports during last

year was-less than that of the previous abnormal year hy the amount of .631,(100,000 and the value of our exports exceeded that of our imports during the year hy over £7.600,(KM), Owing

to ft-he fall in the market prices of our products, the value of our exports decreased nearly £'4,500.000 as compared with the a-niuiint of exports far the previous year.

During the recess the Minister of Customs for New Zealand visited Australia for the purpose of making more "equitable tariff armngements with, that country. A treaty, subject to ratifiieation by the Parliaments of both countries, was signed, and has been (submitted for vonr consideration. estimated revenue.

It is estimated that the revenue for the present financial year will ho as under: —-

Custom? duties .65,100,000. Excise beer duty £050,000. Pees for licensed warehouses' and ether receipts £15,000. Total £5,825,000.

During last, yca r the savings resulting from economies introduced in this Department amounted to £1,346. It is estimated that the total annual savings will amount Jo £3,355. The expenditure in 192i-552 amounted to £136,475, and £108,507 is the current year’s estimated requirement, a reduction of £27968.

The net receipts in the Land and Income Tax Department for the past year nmouhted to £7,640,803 (land tax £l, 637, 816; income tax £6,002,987), which compared with those for collection for the previous year show a decrease of £2,'297,121.

The land-tax receipts compared with those of 1920-21 show a decrease o f £51,163. The comparison is ns follows 1920-21, £1,688,979; 1921-22, £1,637, 816.

The number of land-tax’ phyeik who benefited by the increase ih the mortgage exemption granted by the Act of last year was npprbxiriiateiv D.iOO led the amount <if tax femiftef ngrregated £IOO,OOO. The income-tax receipts edmiMV'd with those of 1920-21 sIWW a decrease of £2.245,,958. The compa'risbh is as follows :-1920-21 £8,248, 945; 1921-22 £6,002,987. STAMP DUTIES.

The reveliile for the year amounted to £3,444)504; as cbriipared with £3,745,902

for the previous year, jlie cteerease being due almost (entirely to the reduced j collections from duty on ins f rdintntb. j The departmiSiital Vote Expenditure • for 1921-22 was £101,415, 'Jjut in lift , eVtiitiates for the current • «if th-.s is , reduced by £21,2f14. j POST AND TELEGRAPH DEPART- , MiSNT. i The amount of revenue collected by | the 'Department during the year was j £2 748,481. The- principal items were— j pd'stnghs £1,4ibt2.'41; telegrams £685,555 ; telephone-exchange receipts, £614SG7. , ' The net expenditure, was £2,448, 688,

a decrease of £f39i672 when compared. with that of the previous year. The Lands arid Survey Department expenditure in 1921-222 amounted to £215,672, -while estimated expenditure I for the current year of £193,666 is sub- I mitted, a reduction of £22,005. j The gross receipts from the woiking railways amounted to • £6,643,591— a decline of £265,000 on the previous vch'r’s 'figures. The working expenses amounted to »£6,2,37,727. The nek re- ; V emie is therefore £405,864-repfesent- | ; i„g n . return of 1.07 per cept. on capi-

tal cost. As illustrating the practical results that have bc'eßV obtaih'ed in the direction of economy, it may ho stated that in September 1921, the expenditure exceeded the gross revenue by £54,000, while on the 31st. March, 1922, the

revenue was in credit to the extent of £405.864. ; For the year ending 31st March 1f)23. it is anticipated that the revenue will amount to £ ( ,200,000 and the expenditure to £6,1G4,Q00.

i j n accordance with the bleat Export Control Act, 1921-22, the New Zealand Meat-producers Board was constituted in March with full control ove'r the ex- ' port and marketing of frozen meat. DEPARTMENT OF AGRICULTURE. The total value of the agricultural

products exported was £39,236,528, or 89 per cent of the total value of all ex- ■ poi-ts— hanfcly £43,794,883. In order to ensure satisfactory supplies of phosphate rock for in ami rial purposes the interest's of the Pacific Phosphate Company in Nauru and Ocean Islands were purchased by the British, Australian, and New Zealand Governments as from the Ist. July, 1920, the price being £3,500,000. New Zealand’s share is 16 per cent., the balance of the capital being held in equal shares by the other Governments concerned.

State Forest Service—The prelim Henry organisation of the staff into seven conservation regions as outlined in the denprtmentnl reports in 1920, has been completed.

The net expenditure for the year was £107,582, an increase of £28,031 over the previous year. The revenue from all sources for the year was £30.836. an increase of £ll,139 over the previous year. Repatriation.—The work of re-estab-lishing discharged soldiers in civil life, which has been proceeding for over three years, is nearing completion, and the early absorption of this special branch has been arranged. Employment.—Up to the 20th. March last 20,851 men had been placed in employment, and the total number awaiting employment at the date throughout the Dominion was only 259. It has been necessary to make unemployment sustenance allowances in only 188 cases of hardship during the past two years, and the total amount expended as “out of work” pay is but £5,536, or an average payment of Is Id per demobilised soldier.

TRAINING. Training was arranged for 7,417 partially disabled soldiers, apprentices, etc., and 6,897 of these Drive finished their training. No less than 91 per cent, of this number completed the full course laid down, and were absorbed by the industries in which they had been trained, whilst a number of the 9 per cent, who discontinued before tbe completion of the course did so on account of ill-health. The total amount expended upon facilities for training and for the sustenance of the men during tbe training period is £382,022, an average cost of 655 for each completed trainee.

MINING. The value of tbe mineral-production, other than kauri-gum and coal, during 1921 amounted to £910,152, as against £816,236 during tbe previous year, the increase being £6,3,916. In the case of gold and silver bullion, the improvement is better indicated in weight than in value, owing to the prices which were realised for tbe previous metals having declined in conformity with the upward movement of the American rate of exchange for sterling. Notwithstanding the difficulties experienced by the mining industry, the increase in value of such metals amounted to £lB,788. and in weight 77,225 ounces.

Immigration—There lias been a steady flow of suitable immigrants during the past twelve months. The open nomination system enables the residents of the Dominion to secure all classes of skilled and unskilled labour. The expenditure under the vote for the past year incudes liabilities incurred during the war period which had to bo liquidated. 'Considerable economy has been effected, through restricting the travel of overseas acit'tloment immigrants to the Dominion to the direct route, the saving for 1922-23 being estimated at £2,560.

Dominion Laboratory.—The receipts during the year were as follows : Fees tor analyses £39; foes for licenses under the Explosives and Dangerous Goods Amendment Act, 1920, £1,153; charged on explosives stored in Government magazines £1,357; Total £2,549. The expenditure in 1921-22 was £9,887, and the estimate for the current year is £9,180, a reduction of £707.

Censorship of Cinematograph Films Films to the number of 2,432, containing 5,672,720 ft., have been examined by tbe Censor. Of these forty-one were rejected, and excisions were made in 203. The revenue amounted to £1,564. Registfat-G'eheial’s Office.—The revenue of this Department for the last financial year amounted, to £17,244, as against £19,569 for the previous year, the difference being accounted for by a decrease in the number of marriages. Census and Statistics.—The expend! turn in 1921-222 was £60,508, whilst the amount asked for this year is £31,537, a reduction of £28.971.

Weights' and Measures.—The fees collected in connection with the administration of the Weights and Measures Aet, 1908, up to the 31st. December, 1921, amounted to £264. The administration of this Act was fak'en over by

the Labour Department as from the Ist January 1922.

Passports.—The fees collected for the issue of passports amounted to £1,624, the total collected for renewals being £53.

The expenditure on education services from Government sources during the past financial year bas been £3,446,113. Economies have no far resulted in a total esfcimMO'd annual saving of £12,000 including £105,000 from the first reduction in the cost of living bonus or increase.

WEALTH DEPARTMENT. Including subsidies, the total expenditure for the year under this beading was £725,810, as against £621,990 in the previous year. The receipts of the Department amounted to £64,337, ns against £31,628. the previous year.

The annual subsidies to Hospital Boards amounted to £471,711 in 192122 as against an estimate of £425,000. The estimate for the current year is £425,000.

Mental Hospitals—The total expenditure for the year under this heading was £384,015, but the credits, mainly receipts for maintenance and sales of produce and stock, amounted to £lls - 416, leaving a net expenditure of £269199. an increase of £7,461 over the previous year.

The expenditure out of the Consolidated Fund for defence, including Ordnance services and the maintenance and training of the Territorial Force,' during the financial year ended 31st. March, 1922, amounted to £415,451, or £3,333 less than the amount appropriated. The estimated expenditure for the current year is £317,616, showing a saving of £97,834. including an economy of £SO- - per annum effected by the execution of a new contract for the supply of small arms ammunition.

War Expenditure.—The net e'xpcif. ture from vote “War Expenses” for the past year was £914,227. The expenditure on naval defence for the financial year amounted to £418,665, The capital sum owing on account of H.M.S. New Zealand is £1,795,166, against which accrued sinking funds amounting to £931,429 are held by the Public Trustee, to whom 4 per cent, per annum oh the capital sum is paid for this purpose. The grand total of actual payments made t 6 war pensioners from 1915 to the 31st. March, 1922, is £7,335,044. The departmental expenditure in 1921-22 amounted to' £138,734, com-

pared with the estimated requirement, £119,801, for 1922, a reduction of £lB- -

Teachers Superannuation Fund.—This fund amounted oil the 31st. December, 1021, to £681,777, an increase of £B2, 474 for the year. The amount invested was £656,585. The revenue for the year was £174,554, including contributions £96,391; intorest £35,146; and Government subsidy £43,000. The expenditure was £92,080, including retiring allowances £74,315, and refund of contributions £15,710.

Department of Justice.—The expenditure in 1921-22 amounted to £147,094. and the estimate for tlie year 1923 is £131.418, a decrease of £15,676. Police Department.—Tlie expenditure for the year was £411,056, being an increase of £12,078 over that for the preceding year. The expenditure of the Department has been kept down to the minimum consistent with efficiency. The estimate for tlie current year is £7,196 below last year's expenditure. Printing and Stationery Department

—Although this Department charged itself with £105,000 last year for land and buildings it shows an excess of receipts after a reasonable charge for work done, of £B,OOO, thus demonstrating the value of the Government’s policy of doing its own printing work.

Tourist and Health Resorts.—Tlie receipts from all sources were not up to expectations, being £51,127, as against £51,038 for the previous year. Tlie net revenue from the passengerhooking system was £3,469, against £3,409 for the previous year.

Tile control of the sanatorium, baths and gardens at Hanmer Springs was transferred to the Health ‘Department as from tbe 20th. January, 1922.

'l’lie charges for accommodation of visitors at all the hostels have also been increased. The expenditure in 1921-22 amounted to £86,943. which is reduced to ail estimate of £71,792 in the current year a saving of £15,151.

Marine Department.—The expenditure of the Department for 1921-22 was £151,695 and tbe revenue received amounted to £74,900. The estimated expenditure for 1922-23 is £126,305—a reduction of £25,390 when compared with that of last year. Western Samoa.—Pursuant to Article C of the mandate for Western Samoa, the first report on the Territory has been forwarded to the League of Nations, and will this session he laid on the table of the House.

The Departmental expenditure in 1921-22 amounted to £21,478, whilst the estimated expenditure in 1922-23 is £18,756, a reduction of £2,722.

Government Insurance Department. —The Life Branch of this Department had a very successful year. The new business, which comprised 9,986 policies ior £1,631,250 was, with .the exception of that of one year, the largest ever transacted and firings the total policies in force to 59,189, insuring with bonus additions £17,279,734. The State Fire Insurance Office has had a good year, and, although fire losses wore much heavier than for the previous year, a. profit of £39,324 was made after providing £30,230 for in-come-tax, reserve for unearned p-emi-unis, and investments fluctuation reserve.

The not income increased by £14,403 the gross amount underwritten hy over , £2,800,000, and the accumulated funds | by £45.080. | The assets and liabilities of the j Westport Harbour Hoard were taken | over by tbe Crown as from the Ist ( April, 192], at which date the advances made by the Treasury to enable the Hoard to meet its liabilifie j amount'd to 681,758. 'Hie leans for, which the Government I ccartie respni-l si hie amount to £BS(),4f's. I With the exception of the 630,'95 j due to the Treasury these loans have ! been subject to a sinking fund of 1 per 1

cent, and accretions amounting to £261,201 were held by the Public Debt Sinking Fund Commissioners on 31st March, 1922. The harbour receipts for the Veai amounted to £29,774, whilst, the ex-! penditure totat'fed £76,892, ol which ‘ £30,715 represents maintenance expenses ii'fld £46,177 interest and sinking fvfrid's tfiarfie (in the loan capital of the late Wckt'pdrt Ha'rbutir Board 1 leaving aft' apparent deficit for the year which however ik reducible by a proportion of i'eVenhe collected by the Bail way department in connection with which aft adjustment of account is pending.

The harbour is libw controlled by the Marine "Departhuint, which is taking active steps to strengthen the financial pOSi'tioii, involving n revision of the port charges and a reorganisation of the staff. Greymouth ’flarbiihr Board.— In 1917 it. becnfne necessary to grant financial assistance to the Greymouth Harbour Hoard, which was unable to meet current expenses, including interest and sinking-fund cha’rges. At' tlie 31st March, 1921, cash advances amounting to £04,865 had been Tirade, against which the Treasury held £29,342 accumulated special goal 'rate, also £2,500 due on account of land taken for railway purposes. The net. indebtedness of the Board, £33,000, has been treat--ed as a loan oil the security of deben-

tures issued by the Board hearing interest at the rate of 5-J per cent pei annum with a currency ot ten years. The affairs of the' Board have now been placed on a satisfactory footing, and further assistance will, nut be looked for.

PUBLIC DEBT. The gross public debt as at the 31st Munch', 1922, was £219,054,385, and annual interest charge £10,875,185. Of the interest, £1,892',081 will be recouped to the Consolidated Fund from Trading and Investment account. Bank of New Zcfiland. —The advantage to the Government of the banking legislation passed i'll 1920 is reflected in the- dividends received from the Bank of New Zealand for the financial year 1921-22, which amounted tc £112,500. On the £500,000 preference “A” shares the dividend is fixed at £50,000, or 10 per cent. On the £625,000 preference ”B” shares the dividend received was £62,300. This was t pqual to the dividend of last, year, and represents a return of 10 2-3 per cent, on tlie capital invested in these shares.

The total dividend, £112,509, is m the fate of I 0 per cent on the nominal value of the shares held b.v the Gov eminent, £1,125.000, or 12 6-7 per yen! on the total funds invested, £875,000 ECONOMIES. SAVINGS, REDUCTIONS ETC. Actual in Departments and special Acts from Ist April 1921, £2,352,803: interest and sinking fund charges. £696.950: other economies proposed, effected, and iq hand £1,070,000; tota' Consolidated Fund £1,725.813; mbcelliiueoiis Departments, and accounts. £461.026; grand total £5,190,419. ESTIMATE OF REVENUE.

Customs 5,160,000 Beer duty 650.(00 Railways 7,200,000

Stamp and death duties 2,726.000 Post and telegraph .... 2.766.000 Land-tax 1,509,000 Income-tax 1.100.000 Registration and other ' fees 147,000 Marino 52,000 Miscellaneous 1,400,000 Territorial 202,200 National endowment ... 105.000 Deoertmontal and other Ueeeipts 242,030 Total £26.250.001)

ESTIMATE!) EXPENDTTI'IIE. The expenditure for tlie year is estinnited atPermanent charges, Civil list £29,931, interest and sinking fund, ordinary debt £4,315.667: war debt £4.(167,437; total £8.933,1<’4. I’nder special acts: pensions, civil and military', £1,051,096; war. £ 1.650,000 ; total £2,711.00(5. Other acts, including subsidies for social services, Cl,302,(558: annual appropriations, £l-1.-011.526; total £27.938.215.

The estimated expenditure shows a nominal increase of £208,000. representing Printing Office receipts now credited to Revenue Account instead of to the relative vote, and which for purposes of coniptirison with previous expenditure should he set oil against the estimate for the current year. ESTIMATED RESULT FOR THE YEAR. To the estimated revenue I propose

to add £2,000.000 of the excess Cus- * tiliis revenue of 1920-21 specially re-! served fer the purpose of meeting the! inevitable effect toon tint revenue of' the year-, nnin umß.lv mu': -ceding the oeriod of on r imporiai.io«. i

The / net -orpins brought fonvaid from last year was. £7.531 ,307, inchul-1 ing excess Customs revenue. Securities repVcseii't'ilig £1,000.(100 temporarily invest vtl in the Hail ways A ntbori-ztiti-.m lVnp;l’ivenent Account are ab'.a invlnded. ! propose to transfer £1

259,5t'(J to 'the .public works and other developmental nc.-oimts, thus reducing one loan reefiiirements for the year and at the same time making subfitan-j rial provision for unemployment. 1! ie estimated result of the year may , lie M'tiin'ilisted thus:—

Balance forward £7,531,367; estimated revenue. £26',25Q,000, total £.■13,781.307 less estimated expenditure £27.938,215, supplementary estimates £25(4,0-KL transfer public works, £l,25D.TK)9 total £29,438,215; estimated cash balitnie at 31st March, 1923, £4 ,- 343.152. The balance will be available during the ensuing year to eo'-er the margin [ between expenditure and revenue, and to meet with regularity the Dominion's commitments without incurring heavy interest charges prior to the receipt of the land and income tax receipts.

RESULTS. Ccnsslidafed Fund receipts, £28,127,00*7; expenditure, £28,403,838. Transfers from surplus to— Discharged Soldiers Settlement Account, Loans Itedcifip:inn, Account, etc., £780,011.

Excess Customs duty used for balancing, £279,831. Income from Reserve Fund, London, £90,550. Surplus carried forward, £7,531,367. Excess Customs duty held to supplement revenue, £2,000,000. Public-works expenditure, £5,431,407 Unemployment provided for. Extensive development of hydroelectric works.

Loans, redemptions, and. renewals. £7,741,055. Customs revenue and excise, £5,554,334. Tariff arrangement with Australia. Land-tax receipts, £1,(537,81 6. Income tax receipts, £6,002,987. .Stamp, revenue, £3,444,504. Tot ti I i sutor-tax, £515,24 8. Rank-note tax, £227,080. Amusements-tax, £103,815. Post and telegraph revenue, £2,7-18,-481. ißailwav revenue. £6,600.003.

Savings-bank deposits, £29,125.907. Total AVar-lciin Certificates sold, £1.619,9,83. Total Pnst-oTce Investment Certificates s.Vk'l, .£229,673. M.acliine-priiiting telegraph instr.llccl. Rural m;ii!-d diverv extended. Waste lands d.v.'l • pad and subdivided. .Soldiers’ privileges extended to South African War veterans. I\n:iri-guin jmrebas-’d. £38, ! 300. Advances authorised to 20,392 discharged soldiers, 620,409,571. .Modern dredge equipment for swamp

drainage. 63,0,J9,000 increased value of drained xw-mp l-md.s. Total value for year i.f experts, £-13,791 883, including agricultural products. £39.2.3 i,528. Rediictii.ii in price of Nauru and (Leah Island, phosphate. Financial assistance granted bv the Repatriation Department to 58,622 men, amounting to £2,197,953. block of sulphur-bearing land purchased in North Island. Publications Committee established. Expenditure on education services, £3,52a,0()0. Defence Department reorganised. Saving of £50,000 per annum in contract for supply of small-arms am-

munition. Centralised control of mol or transport. War pensions paid since 1915, £7,335,044. Co-ordination of all pensions and annuities with Pensions Department. Total contributors National Provi. dent Fund at 31st December, 1921, 21,713: Funds, £632,653. Co-t-af-living allowance to Public Service annuitants, £137,461. Native Department organised. Native lands purchased by Crown, totalling 1,089,081 acres. State advances to settlers, workers, and local authorities during the year, £1,921,9(55. Subsidies to Hospital Hoards paid, 192,1-22, £471,711.

Native Trust Office inaugurated. West-port Harbour vested in the, Crown. Grey mouth Harbour Hoard placed on sat isfactory footing. .Mediation in respect of dairy-fann-ers’ mortgages.. £5,000,000 5 no r cent loan floated at par. Transfer of New Zealand Consolidated Stock (London issue) from London to New Zealand registers provided for. Reduction of trec-of-ineome-tax se-

curities. Interest. .£17.161, earned through investment of surplus cash balances of Public Account. Total dividend from Bank of New Zealand for year 1921-22, £112,500, or' 12 6-7 her cent on amount (£875,000) invested. (Ao-ordi'nati'on of buying ail'd control of stores. Savings and cTo’Utomi'es, effectdd in Department and finder Special Acts, £2,152,853. ESTIMATES AND PROPOSALS. ('ar.solidated Fulid— Esii'nmted revenue, £23,250,000. Estimated expenditure £27,937,21.5 Revenue to he siYppTePYeutcd by £2,000,000, ‘excess Customs dtfty . re l serve. £1,250,000 to he transferred to works and development capital accounts. Expenditure to be further reditced. Loan for public wotks. Continued provision for unehiployment.

Raekblock's 16 he developed. Hydro-electric development to he accelerated.

Land settlement to be actively promoted.

Primary and secondary industries to be stimulated.

Further extension of telephone system.

Additional wireless-telegraph facilities to be provided. Estimated savings as result of improved control of stores and supplies, £200,000. Conversion of free-of-income-tax securities.

Improvement in the system of Sinking. Funds in connection with the public debt. Provision for additional post-office accommodation.

Cost of departmental printing and Government publications to be reduced. 0

£350,000 to be provided for school buildings. Transfer of £3,000,000 to War Loans Redemption Account. Increased contribution for naval defence.

Investigation of pension systems in general. Stabilisation of Superannuation Funds.

Redemption of Death Duty Stock. Reduction of public debt by £5,000,000.

Funding of Imperial advances during war, £27,532,164. Representation at British Empire Exhibition. Estimated cash balance at . 31st March, 1923, £3,332,152. Savings and economics, £1,675,000. The establishment of Rural Credit Associations. .

Development of reproductive irrigation scheme.

Progressive work on important lines of railway now under construction. Further increase in value of National Assets bv swamp drainage operations. CONCLUSION. I think I can claim, and with reason, that tile outlook for the present financial year is very much better than was the case at tlie col-responding date in 1921. It is true that since then there lias been a serious drop in revenue, but there lias also beeh a decrease in departmental expenditure. The withdrawal of part of the bonuses which were agreed to and provided for in 1920 and preceding years as against the increased cost of living lias naturally caiised a certain amount of dissatisfaction, hut I am glad to he able to express the opinion that the great majority of those in the Public Service realise that the burdens, wuioh the State is carrying at present are too heavy, and must be reduced if within a reasonable time we are to gethack to nornlnl prosperity. Economy and industry must be the watchword"oi tlie citizens of this country for a considerable time to come. So far as in- : dilstry is concerned, there is little to find fault with. Undoubtedly the war and the aftermath of the war have had a very unsettling effect, but the manner in wliicli hiost of the- people of this country have gone back to work

is beyond all praise, and this result is-.. shown in the steadily increasing Vpl!ume of bur exports. It sho’ulcl be the duty of all concerned to .reduce the prices of commodities required in New' Zealand, and to reduce the cost of production wherever possible so as to enable us to compete successfully in the ' niarkets of other countries, fin'd at the same time bring down the cost of living in this country. There is no royal road to prosperity, and there is only

one way, and that is the way of industry and co-operation. In a crisis such as that through which we are

passing, every citizen must be- pre-. pared to do his share of the work and carry jiis share of the burden. No • Other method will bring-complete Success. In a country like New Zealand; ' with its good soil, good climate, and'industrious population, and the best markets in. the world ready, to receive . its products, a financial -.depression, , however severe it may be, I cannot last

for long. With - the steady application, of those qualities which I believe NewZealanders possess in an unusual degree the time must conic, find soon, when the depression wall pass away as mist disappears before the mbrriiffg sun. ■