FINANCIAL STATEMENT

Hokitika Guardian, 24 July 1924, Page 4

FINANCIAL STATEMENT

IVr favor of (lovornmoiit WFI.UNCTON, July 'J3. Iliui \Y. I'. Ma-sov (Minister of Filumee) delivered to Financial Statement in the House to-night, in the course of which he made the following

releroncos : I have again tlie pleasure to suhmit for the consideration of honourable members annual statements of account which furnish a record of progress and unmistakable evidence of a continued return to prosperity. The revenue has been equal to expectations, and tin* expenditure has been kept down wherever possible to do so without loss of ellieienev, with file result that there is a substantial surplus of revenue over expenditure.

If KV F.N ['K, 1023-21. I estimated to receive during the year a total ordinary revenue of C27,9!)9,000: the actual amount received was C27.0(10,370, or C 5,030 short of thi estimate, hut C 350.927 in excess of the iimoiint collected during the pre-

vious linaiicial year. I*:x IMIXDITIi: K. The amount appropriated to meet (he expenditure of the year was C27,1-3,-

375, but the expenditure was C2.i,1 !>,- in.'i, which, when compared with the expenditure of the previous year, shows a net decrease of Cl 1 I he

permanent charges on account ol in-tere-t and sinking-fund payiiunt-. including tlie Imperial inntled debt contribution. have slightly decreased. 111.) expenditure under special Acts i- less by Cot si, 317. but the previous year’s

expenditure included C2oo.tif 10 paid to ti.e Klectric Supply Account under

special enactment. The surplus of revenue over expenditure was C1.M2.J.i0, and balance at 31 si March, 1021. C1.0i1.711. Fi r the linaiicial year ended 31st March, 1021. the value of the exports exceeded the value ol the imports by C7.2in.(i()il, there being an increase both in volume and value.

Tile balance on Ist April. 1021. was C1.0i1.711. F< O.NOMIF.-. The expenditure of the Consolidated Fund for 1023-21 continues to relied the policy of systematic economy inaugurated 111 1021. the expenditure for the Oast three years being :- C 1021-22 2'o lilii.s.Os I! 122-23 2d.203.71iU 1923-21 2d,1 l-wlll'i The reduction in expenditure in I'.lgg-gO over i tint ol the previous year totalled C 2,203.1175, and this coiilrnrlion has not only been sustained but a still further reduction of Clli.7ii Is recorded. TIfKASriJY 1t11.1.5. It was not necessary to anticipate the receipt of revenue by the issue of Treasury bills in New Zealand, as the balance carried forward at Ist April enabled requirements to be met during the difiionlt. months of the year. isnmsn waim.oax stock. Temporary investments in I’ritish War-loan stock held by certain accounts were realised during 1023-21 totalling COI7>,111)0, of which CSIoJIiIO was purchased in 1017 at Of, and the remainder in 1022 at about 00. Ihe

profits on these transaelioiis amounted to C Hi, 121. ITIICIIASK OF NFW ZFAI.ANO STOCK.

I Was a hie recently to elicit a purchase of our 1-per-cent stock maturing in 1020 at a profitable discount. An amount of C27>fl,(lf)fl ini- secured tor eancellation in terms of section 21 ol the Finance Act. 1921-22. The transaction will represent a saving over the period of live years of about CJO.OOU in premium and interest. IC2I LOAN'. Although I was aide to .satisfactorily loin nee the last year, and provide additional large sums for the Advances Oflice without outside borrowing, I decided in May to place a loan of CA,llOl),Hill) in l.ondmi. C3.illH).li:io of which wa- for ntibli" work- C 1.000,030 fur ad\ allies to settlers, ami Cl. O. 111,000 lor advances to workers. The isue wa- If per cent at C'Jo. and I am pleased In state that the loan wa- siib•rribed l.mifold. and. moreover. imn cilia i Iv v. iin t" a mall premium. Die i'll us -l-yield of the loan to in-ti-tors i- Cl lbs Oil pm- ci lit per aniiiii.i. To a.s-isl in meeting the heavy deliian I- ih.it hate been made, I have ariaiigid to obtain .some additional tapiial •:i the .-.line terms for Stale-. advances iiiirposes. IM hl.lC WORKS FCM). ,

The cxpciiilitiire on public works was practically the -aino a> tluiL fur the \car 1922-23, the total expenditure aiimuntmg to 93.7-10,100, the hulk being I'm- railway enlist ructinti, additions to iip---:i lines, roads, eii-.. and telegraph exi elision.

I |>:*i]mto moot tin* rci|uiromcMts oi tin* cm’rout vein’ with 1:3,555.555 of tiic In.’in ft ntly raised in London. imil to supplement 1 1 1 i :i nit ill ii t by again tre usfrrring the >lllll ol 2 I ,555.51;') i'fom >ll rjtins revenue. ELECTRIC fMT’IM.V a: CO ('NT. The excpndilure under appropriation on development of hydro-electric -«-l It • 11!0> It 11 It • 111 1 1 f■< I to L'S I 2.075, Jl> <-sllnpiui'tl v.itli the sum of t; 172.87 I ex ii.’iulctl during the previous year. nil 111 l Tl'ilSC of L’.’i ill, Ini. MAIN lIKiinVAVS.

I’ruvi-ioii litis hooii miiilo I'of the liiiaiuo of the .Mnin Highways liottni ns con-tit tiled in tonus of the* Act of 1022.

TIIO Consolidated I’’iiiii! ostiimitos provide for tin; 11 : 1 v 1111 ■ 11 L of 235,0!1d In the .Muin Highways Revenue Aocouiil. which Inis also nl credit 2210.5>|, the proceed' oi the duty oil motor-vehicle tin's. In iiddilioo. 1110 .Main Highway' ('oiistriict ion Fund is to receive 2255.555 from tlio I’uhlio Works Fund mid 2305,555 from loan-money.

Legislation empowering local hodios to burrow lor main highways purposes is in courso of preparation. I.M.M It; 1! ATION.

Tiio immigration policy ailoplotl hv the (iovcriimont has lioon the moans ol 'coining a steady How of new arrivals into the Dominion during the past financial year. The conditions under which assisted passages may he secured are in every way favourable to the migrants, and. as the Imperial and New Zealand (ioverniuents are working together, the cost ol each migrant to the Dominion is being kept well within hounds. CTSTOMS AND EXCISE.

For the past financial year the Dominion’s general prosperity consef|Uent upon the buoyancy of otir export trade was relleeted in the Customs revenue. Including A' 1 23,553 tire tax erediteil to Main Highways Account, the Customs and Excise duties totalled 27.351,783, or 2351,783 over tile estimate. Customs and excise duties, other than beer duty, for the current financial year nhe estimated to produce t7.300.00i>. LAND-TAX. j ■Compared with 1922-23 land-tax re-j ceipts decreased by 11 15,050, tliei figures being 1022-23, C 1.011.552; J 1023-21. 21.125.152.. INCOMK-TAX. The ineotne tax receipts compared with the year 1922-23 show a decrease of 250, HV). the figures for the respective years beingl922-23. 23.831 932 : 1923-21. 3,781,532. This decrease is due to ihe reduction of 25 per cent made in tile rates of tax. STAMP AND DEATH DUTIES. The net revenue collected under the Stamp Duties, Death Duties, nnd jAlUtlyop.oiil.ij-taj* Act 1 Win JC3,3-13,78)•

RAILWAYS. The gross receipts from the Working Itjiilwavs amounted to Cfi.934,211, an increase 01. 9250,-109 oil the previous year’s figures. The working expenses amounted to 95,403,700. I lie net revenue is therefore 91,580,415, which iinioiint represents n return of 93 Ids (id per cent oil the capital cost. Although there lias keen a fair Increase in the revenue, the amount fell short of the estimate hy 915,759, clue principally to the miners’ strike at Westport during the period September to January. During the year the Department was confronted with considerable loss owing to heavy lloods and slips which occurred in both lhe North and South Tslund.s. The improvement in the financial position is the outcome of the savings effected during the year, hut the need lor exercising rigid economy still remains. I.t is still necessary to lie conservative in the matter of estimating the revenue for the ensuing year, which I place at C7.100.0fM1. and the expenditin*'* jit iD.nOO. I*(WT AND TFLKCKAPII DF.I’AHTML NT. ■|'he revenue of the Department clitring the year was C2.U31.J-10. lhe principal items were—Postages, C1.0:12,II17 ; telegrams, 9700,329; and telephone exchange receipts, 9825,178. Kxcdudiug interest charges on capital tlie expenditure totalled 92,117,052. Deposits in the Post Office .Savingsbank amounted to 029,598,872, and withdrawals to 029,510,321 -an excess of deposits over withdrawals amtmntji. r to C.-S.Ool. The amount tit the credit of 710.1 “>7 depositors tit the 31 si .March, excluding interest for tin* year Wits C 11. I IS. II I. PKNNV POSTAOK. On the l-t Octoher, 19'-’:!, the penny po-tage ini' ie-cstaMishccl within the Dominion, and to till parts ol the British Kinpire. by the further decrease or one-halfpenny in the letter rates. Opportunity was taken at the same time to make appropriate reductions in rates of postage oil other classes of mail-matter. When it is rememhered that the cost of concessions in postage brought about by the reductions effected on I'Vliiunry and October. 192.1. was L'CIKI.IIIIII per am there is cause lor cmigratulntioii that revenue from postages last year was only 02-5i.119 Ic-s then tluii derived from the same source in tie- previous year. With a continuance ol prosperity this loss should shortly disappear. TKI.KPIIONK I?ATMS. An amended scale of charges was brought into operation oil the Ist October last, and the former method of collectin'' fix months’ rental in advance was reverted to. This alteration in the method of collection had tie I effect of inflating the revenue tor the financial year, a sun. of C525.17S being I received as compared with L- I .?•},.>■)c doling the previous twelve months, | lUt of .hi- amount CI 10,000 lias to ho earned in the current year. Althoug t il-,e present charges are moderate. the> me designed to earn interest on the capital outlay. K DUCAT I ON. The expenditure from Government sources on education services during the past financial year totalled l-A.271.751. I UKI- IvNCK. 1 The expenditure out of the Consolt-dnt-.'d Knud for defence, including onluatic a cervices, aviation, and the maiiitainaiii e and training of the Territorial r'inc. lor the year ended March. ;i|ct. amounted to £348,023 •>.' £27.722 Ic-s, tin:it the amount a; pr<:I riated. NAVAL I)KI'LN(K. The exj eiidituie on naval delen-e i lll* the tic.'iuial year ended .list. .Ma-ii li 192-1, amounted to £.'b -1,900. *| estimates for the c urrent year 1 1 a\t e'en flamed with a view to continuing as lar as possible the pc.lict c till.arked on In the Dominion. The total net c.v, euditilie lor the Naval defence v. i-. I'S'l-2.'> i- c-timalcd at £B3O. p;'., WAlt KNIENDITIKK. Tiio gross c•:j .unlitine from vote •■War exi eitse." during the year ended ::l-t Me i 11. 1921. v. as £370. 190. the |iinci|..i items being 9121.21 i for tin- modi I treatment of dist Ini gen s.ilda-r.s ior war di-.al.ilil ics. e| lu.ni's count of our liability for irelis|ort ol troops, £12.182 lona ils CO lion of bettlelii Id llietuoria'a in uar iireas. £31.9-52 towards cost of ciii:-iruction of ccmeterii’,- and w: r gi.i-.c-. £23.070 iii connection with re--1: * t rial inn lvalues and £08.207 ior iu!nv nose ell.iiieous war expciidituie. Itc.eijls I'l'un the t-ale if surplus stores. mcdiral stores, and nth o' n si ellaneopus credits totalled 077.531. which with £133.831 received in repayment m repat■ i.itn.n leans left a net expenditnte of £l-59,-131 lor the year. The -balance of c laims from the ImI • rial Slopping Li(|iiidat i.-.n for iroopti.iiispn.t I barges against New Zealand. niinmiitiiig to £S<Jo.<kfo net. was recently received. A“ the result :.l ( lose exaniinatioii. these were redueed

to I'pprosimately 2200,555, and a progie->-! ay meiit of £IOO.OOO "as made in March last. 'lhe hahmee is provided I’o.i 11; : his year’s estimates.

The War Expenses Account "ill he closed at the end of the ] resent linamial year. I! Fl’ATIt lATIOX. Sime the 31st. December, 1022. the benefits under the lie) at! iatiou Act Have been restricted to luhorcukir coot her seriously disabled soldiers. Fillamial as-itame paid out to such men 1i 1 ring the twelve months ended 31st .March. -1021. inmounted to £17.370. 11: king the t ill moil. vs advanced to

soldiers by the Repatriation Department C 2.371.531. of which sum £l.055.1)71 win by way 01 i,:;.... NATIVE TU t'S I OFFICE.

As the purposes lor which the Xative Trust ofliic was estahli-hed are hcccaiing more widely known among the Mori'. they an- taking increasing advantage of the fiuilite.s alforded to burrow moneys for the improvement of their lauds. Last year -138 applications were dealt with, and £35.515 was advanced, making a total of £!sc.. Odd to date.

It was found possible during the year ended to increase by I per cent, the rate of iute. t-st 011 moneys held on 1 .'half of beneficiaries, anil this Jins given general .satisf.-c-tinii. DEVALUATION OF SOLDIER FARMS.

In conformity with the legislation passed las! session authoi izing the revaluation of soldier farms, a Dominion Revaluation Hoard was appointed, and twenty-three District Revaluation Committees set tip. The duty rf the Committees i- to inspect tint! value the farms in their respective districts, and submit their re; ort.s to the central Boa: cl. DI.SCH AUG EI) SOLDI ETS S' •SETTLEMENT.

From the inception of the discharged soldiers settlement in 1015. to tin end of the financial year advances have been made to 22.213 returned soldiers, totalling £21,803.500. The receipts for the year amounted to £1.513.511. , being the largest amour.t received to date in any one year. O c tin’s sum £702.208 represents repayment ef .".Jv.'-tiiw. while reioipts in respec t of inte ett and sundries total C 721.270. Arrears outstanding on interest and principal amount to £751.521. while the sum of £30,550 is outstanding as pcvstpoiied Instalments. Tlu niTeai', of lctlt n-moUill 10 £187.100,

state advances office. Tho capital of the State Advances Office increased hy £3,114,750 in 192324, and since the 31st. March, 1921, a further £2.390,000 litis been borrowed. making the total capital of the Department tit 30th, June, 192-1 to be £2.,183,252. 7.292 applicants received loans amounting to £0.205,080 in 192324. This constitutes a record since tho Stato Advances Act was passed in 1894, and affords ample evidence of the assistalhc rendered to settlers and workers, HOUSING. The housing shortage w hich has pro. vailed for some years, particularly in those urban ureas where the increase in dwellings has not kept pace with the increase in population, Inis received the fullest possible considetaiion. I NSCHAXCK DKPARTKNT (Life and Accident). The operations of tho Life Branch of this Department during the last year lia.s been most satisfactory. The new business amounted to £1 581.722. t'nd the number of policies in force at the 31st. December. 1923, was £00.5-15 representing a total insurance, with lion us additions, of £17.900,012. The total income v.as £814,03-8, and the excess of iitec :i:e over expenditure is tho largest in the history of the Department amounting to .9223.872. At the end of the year the Life Fund stood at £0.222,481. A good year was also experienced b\ the Accident Riaie-h. The ptemiuni income was £35,207, being an increase of £1,920 over the previous year, and the interest income £0.207. alter deducting taxes, establishes a record. Notwithstanding the fa t that tho claims have been heavier than usual, the funds have increased by £8.020. The Statutory Reserve Fund is now s, 15.020. and the A'•.'.'.'dent Funds amount to £29,089. the two altigollie being £111.109. NATIY K. During the year 29.500 ac res of Native land were purchased for the Crow ii. at a cost of £200.385. r l lie gross airc.i of .Native* land a i]iiireel by Crown purcliase since 1910 is 1.328.283 acres, for which £3.218.570 was paid. PUBLIC’ TRUST OFFICK. The value of estates and funds actually under the control if th" Public Trustee' on the 31st .Match, 1921 was £32.11! 1.721. This represents an increase of 98.499.920 for the linanc in! year. The new ost-ites acicotccl for administration during the year numbered 2.7:19. with a-sots ol a total value £0.781.1.V3. The snhuiiiist ration nT 178 of these new estates was completed before 31st. March. 1921. wlii'g 1.574 others were also closed the total value being £1.108.251. I’KNSIONS. The follow ing | ayments were made during the year ended 31st. March. 1921 : War pensions ... 1,300.052 Old-age pensions ... 705,392 Widows' pensions ... 202,301 .Miners’ Pensions ... 80.000 Maori War Pensions ... 30.820 Kpidemec | elisions ... 82.50" J'elisions under Civil S"ivi e Act, 1908 ... 21.C25 Military pension.-, under DeJem e Act. 1909 ... 3.110 Pensions under J iiilicnture Act. 1908 ... 2.989 Pnlicc | elisions ... -ISO Siindrv pensions mid annuities ... 4.371 £2.105,221 WAR I’KNSION'b The total of the a dual payments made in icspcrl (I war pensions lo tlm 31st. .Mutch, 1921. is £10.139.990. PUl!!.If S Kit VICK FIND. The t-ltd number < f emitriluilors on the .31st. March last was 15,021. and ti e l dal revenue for the limineia! year was £175,100. including members’ contributions .9228.313. interest on investments £llO.llO. and Government subsidy £IBO.OOO. including a special payment i f £50.000 in addition In tho animal ( barge of £BO.OOO. Ibe total amount expended during the financial year v.as £000.489. which (imipri-cd retiring and 'other al'nwaiiccs 9210,till, refunds (I (on l liliiit ions £'3.722. ( .-I of c liiiini-tratimi £(!.l-50. The (nial number of allowances existing at the end of the year was 2,350. rct resell! iug an aggregate annual 1 ayitielll of .92-51.988. The iinnmnl ol the total fund invested cn 31st. March last was £2.097.70!!. (!()VI'Mt.NAIKNT RAILWAYS FUND. At the 31-t. .March, 1021. the -'mill amounted to £071.827. an in rea.-e of £87.0118 lor 111,, year. The receipts were: Umitrihiitiniis, £133.118: Lite ri st £28.50.5: Government- subsidy £125.093. inclusive of a special payment e:[ £50.000 in addition to the voted amount, of £75,000; fines and donations. 9137: total. 287.150. The cxpeiidiliiii' from the fund ntinmiiied to £199.512. including retiring allow-

unces. iimoioiting to £157.238. 'i FACT I FRB' FUND. This fund aimuiiileil on the 31st. Jiiniiary, 1021. to £858.502. an in •lease of £70.525 for the year. The revenue for ihe period was £211.100. ncliiding roiitrihiilions C1t11.532. and

intereit £18.725. The flovernment . annual suhsalv is £58,000. The expenditure lor 1 lie year amounted to £135,151. including retiring ullnwames £112.851. and lefimd of contributions C 10,170. COST-OF-1 -IVIX 0 BOXES TO ANNUITANTS. The cost-nf-living bonus to public service annuitants in receij t cf less 1 than Cloo per annum involved an expenditure in 1023-21 of £IO.OIO. nnd you w ill he asked In make similar jm vision 11 1 i> year. The present Inauis payment of £l3 to widow in addition Itu the annuity of £lB per annum, and ills) the additional £l3 for c.c h child, is being made permanent. NATIONAL I’ROVI DENT FUND 'lhe membership of tlio fund tit ihe 31st. December was 23.200. the c intributiuu income £113.000. ill" State subsidy on contributions 235.130. and the accumulated fund £oßo.lO{>. an increase of £ ICO .000. It will he seer that the fund is now well within sigltt of £1.000.0110. The sum of £15.500 was paid out during the year in allowances to annuitants and to widows and ehildreii. An amount of £IO,OOO was paid by the State through the fund by wav of maternity allowances—£7,ooo to contribut'cs and C 33, COO to members of approved friendly societies. LAX D-sETT I ,EME XT. Approximately 380.035 acres, subdivded in 077 holdings, and coni] rising practictilly every class of laird, were opened for selection during the past year: whilst excluding luisiellnneous leases, approximately -150.280 acres of Crown, settlement, and national endowment lands and reserves, subdivided into 012 sections. w'ero taken up dining the same period. The miscellaneous leases issued dating the same poiiod numbered 1.118 holdings, comprising an area or 50,100 a. res. The sub-divsions of Mount Pisa Bun were all disposed of. nnd the Teviot sections and runs are open for seloction. At the present time there is an area of some 503.000 acres available for settlement. LAND DRAINABE. The various htiid-revhmwgiiou projects under constlructiou have been energetically prosecuted throughout the year, a.pd with tire aid of the recently Imported excavating machinery oi licit \\ Op'll If us lumpi iK'cs!V>b!!s!l*'d 1

IKRIGATIOX. Tlic large sum of £115,466 was expended on irrigation works for ihe year just ended, nm! considerable areas of land were brought into n*. tensive, ctiltivatbn. The be:/.ities operated on included, amongst others, Ida Valley, Tarras, Aidgour, lloxburgli and .Manulierikia Valley. The subsidies payable to Hospital Hoards for l!)23-g4 were £11j,126, the aetual amount paid being £-112,bin. It is estimated that an appropriation of £5103)30 will be required lor the year 11)2-1-25, about COO.OOO of "Inch will be due to the new subsidy rates under the Act oi 1‘.!23, ami to the anticipated increase in proposed capital expenditure. It is expected that the relief to be a Horded to the rates by the new subsidy scheme "ill enable Hoards to meet capital expenditure by levy and subsidy rather than by loans. .MINING.

The value of the minerals, other than kauri-gum and coal, produced during 1023 wa. s £l,l Its, 112. as against £1103,25b io’r the previous .veal, an increase ot Agio.Ksl, principally due to the iucrease ot £iu2,182 in the production of gold ami silver million.

'J’lie quantity of coal prod need during lbl’3 was 1.Do!!.831 tons, an advance of 112,01 o tons over the production oi the previ ms year.

n the past year 8,078 persons were employed in the metai-inines, coal mines, and slono-quarries oi the Dominion ail increase ul 0!S over the number employed during the year Ibid. The output ot coal Irani the State collieries lor 1023 was 151,4(1'.! tuns. n>

against 123,531 tms lot Ibid, an incrojiH* ul i?7.S2i tois=>. i ii*j v; reciter pin of this increase is Imm the .lame State .Mine, which has now i\ached the productive stage. Ihe indications are that the State coal-mines accounts wdl show a satisfactory profit. IXSIT’AMT. HHt ITHI.IC Ill'll.DIXGS. The claims against the fire lusiitanee Fund for 11)23-24 '.'ere £ll.Olß os against receipts amounting to C 12.503. thus reducing the balance ol tin fund firom £l6 825 at Dt April. lb-’3. to £15.310. ITIii.K DF.JIT. In 1022-23 the net debt showed a decrease of £l.:tdl.bd:s. notwithstanding the fact that C 5.23 1.818 bad been borrowed and expended lor public works and other purposes. I have plcasiirt in recording that the operations of tin year 1D23-2I disclose a decrease in net deft excluding amount borrowed In' State advances purposes oi £1.111.18.) The amount rui-ed lor all purposes im hiding redemptions, totalled £!•>•_■ 201..51 >2. loans aggregating t Itl.tibl. Hi. being redeemed, £-1 .(!• .{>.!).>.> being fievided bv i osb and £7.!! I 1.-Mb by lie. issue ol Irish dcbcnl u i cs.

H KDK.MI’TH'NS AND I! KNKW AI.S. 'lhe loans wiiich matured dorii.g tin year amounted lo £ | l.Ol - la which must be added Co.••Ob mature loans for "birli debentures had no. been preeiitcd up to :’>|sl March. 102.3 making a total ol £l3..n.yii.). Dl this sum. securities amounting lo £,.- 1731)7-1 "ere redeemed (not including redemption of lundcd Imperial 'left), and £«;.:V.)7.!)<».*i renewed at rales of inle'rest varying from I to ■ • per cent., leaving C3.D35 iinpve.-cuted. sn;f>ivision of digit. 'file gross debt, at -fist March. 1024 was £221 .n|fi.O.'il. DkSTI! IIU'TII >N OF DKHT AND AXXI AI. CIIAKGKS. The debt at the 31st March, Ib2l. was held as under: Gross Animal Amount. Charge New Zealand I'll .(>32.868 I .ou t.l In 7 Australia ... '-MOO.Ob'l 80.82l.nndim ... 11 1.8711,5b3 4.077.50:! C 221.010.301 i'.lils. I-|P Net annual (barge at .'Mat March. 1021 £S,.Vi7. Ib7 AVAL DKHT. Hy the purchase of Irce-nf-income-ta\ securities, the application of capita' repayments to redemption purposes, and Imperial debt payments the nel war deft shows a redud ion d f iug the |;ist three years of £0.270.073.

FUN DIG) DKHT. I’aymenls amounting lo £ I .ilol .03! 1 have been made by (lie Imicrial Guv-t-riinit'llt. and which wen l lundcd in terms of ill" agrcemenl dated fit !i Scptemlier. 1022. HANK OF XF.W ZITA I,AN D. ■Dividends were received from tin Hank of New Zealand during ihe veal 1 t preference “A” shares (£st;:) (>'!() £.M;.b" I. preferi :e ■■■ “H” ;4iiV.'e> ( fififJ.Tb:; ; i iial £t lrf. PFHI.IC SFIIATCF.

l-'ni- smii' linn* pis the i|!ic>ii'm <> r I'oiicrully cvtondii'i/. the fort niirlitly 1 my mi'll 1 s ul' i-nlai'ii-s .-mil Wiities of Stall- cinpiiiyi-.'', ul' ilii' Public Service li.i-. been itiulcr cnn-iiler.!; i n:. Tlii> sy-t"!n 1 1a■: nlrcmly been inlm-

duced in several branches of the Service, notably the Government Hailways. Host Olliee. and Government Priming Office, but its extension bad to he delayed on account of the in-erea-ed adminstrative cost involved. It has now heeu decided to generally adopt the hi-montlily system a concession which will doubtless lie appreciated hy tho lower-salaried employees. mSTHICT THK.A.SUHV OFFICF.S

In aci ordaiice wtill the policy announced in ID2O. District Treasury Offices have now been established in Auckland. Christchurch, and Dunedin. The ability to settle claims locally without delay is proving a distinct advantage to til" Government and a convenience to the public. A concurrent audit is in operation in tiiese ollices. ItKDUCTIOX IX TAXATION. The all-important question of taxation has continued to receive careful and detailed consideration. In pursuance of the policy the Government has adopted, of gradually reducing taxation as conditions pcrniiUed, you w iil again he asked to approve of furtiro - remissions. These will be adjusted in such a manner as to give the greatest relief to all classes of the community, and, at the same time, to stimulate the productive powers of tho Dominion.

On the present basis of taxation the revenue for the current year would probably produce £28.857.620. whilst die expenditure is estimated a £27,505leaving a credit balance of £l.352.56'!. The remissions granted hist year are valued at £1.260,:n) and this year, alter providing for interest and debt-reduction charges, as well as lor the efficient and economical adiniustra- ; i ;ii of Departments and services, 1 hope to be able to ask Parliament to iv luce the burden of taxation by about C1.0bb.030. Particulars of which will be supplied in the legislation dealing with the subject.

KSTLMATFS' OF HKVF.NFK. 1021-25. I estimate the Kevcime under the Main Headings of each of the principal Departments at Customs C 7.350.000 Peer duly 030,tX)0 -bumo and dcaih duties ... 3.310,81X1 Post and telegraph 2.8!).i,(.0.1 l.aiul tax 1. 1b.).013 liicmue tax 3.iQO,(Md Hail ways T.IODAJOD Hegistraliun and other fees 200.000 Marine W.D2!) Interest on puhlic moneys 1.231.00!) Local Hollies Loans Act. I!i.:s. -eelion 76 23.000 Kents of Huildings 26,00:1 I’ourist and health resorts 4o£0!) Mi ell:,i,eeus 21.5.000 Territorial D’ l Deiiarimeiif and other ro(‘.il:;> 530,000 28.857.620 |>r<>|>*1*:! taxation ivinis- iniis I .OK }.!).)'> Net. revenue ... C 27.857.620 KSTIMATK!) HKSUI.T FDIi Til It VK.AH. Hevenue £2. .801.620 F.xj.cndit me 2• ..3153;60 Leaving lor M|| plomi nta'rv estimates £352../JO which, in adition to noniial i->*»jiiin-- , mciits. must niver tin* increases in pay .duo i , Hu- regrading of ; ihln* cmployI cos' -aliil ios. CONCLUSIOX. Th:- y:.ai's operation, are a proof <>l tho industry and energy ol the people of New Zealand, c-peojally of it- producers. Kconomy and .sclf-relianee are (puiiities that should ho encouraged and must In oh-cived if the clia.racter ol the people is lo be maintained and the • oiiiitiy is to prosper as we hope and ami he live it will. We are new in n fairly go.nl position. With proper mamigement we should he able to retain our prosperity and keep development going for a long time lo crime. Wli.it v. e have to avoid is an ora of extra'.aganee. of wbirh lhere are already indications bul I hope the good sense of the great muss of the jvo-ple will he lis-ei to prevent anv possibility of the o:Filings of the community being si|Mntnhocd I'm- imneoessary purposes.