FINANCIAL STATEMENT

Hokitika Guardian, 2 August 1929, Page 3

FINANCIAL STATEMENT

(Continued 'From Page 2). SUMMARY. , Consolidated . Fund — Ordinary Ilevneue Account— • . ■ £ Expenditure 24,176,928 Revenue . ...'1; 23,599,676 Deficit ... ••• £677,262 (Deficit due to over-estimate of taxation receipts and unexpected expendi- - . / ture on account of interest.) ‘ •' £ ** ' * Balance brought forward, Ist April, 1928 3,302,232 £ Less deficit tfor 1928-29 . ... ...577,252 Final instalment, ol purchase price of C longterm mortgage shares in Bank of New Zealand 58,594 ,;■■■ ; 7 Amortisation of V debt ... ... 50 Subsidies to local ... ; ./ authorities in -y-’C -i* , respect of unemployment ... 68,*567 Advances to Native Trustee ■ o '. 7 .■' '-*£ (net) ... ... 33,000 ' ' Advances to Rural Intermediate v Credit Board ... 110,100 lA Sundry charges and expenses of loans ...* ••• 1,128 \ - 848,691 Balance, 31st Mar. 1929 ... . ... £2,453,541 This balance, was made up as follows: • ■ -v £ Cosh ... ... 2,315,381 Imprest outstanding ... 135,880 Investments 2,280 . £2,453,541 SUMMARY OF DEBT OPERATIONS. £ f y Debt as at Ist April, 1928 251,396,292 ; ADD— New loans raised for 1928-29 — £ ■Ordinary ... 6,839,547 State advances 3,067,910 ■ . 9,097,457 Part of £7,000.000 London loan carried forward for 1929-30 ... ... 5,379,105 Increases arising out of conversions and redemptions of 1929 stock ... " 739,347 Raised for redemption but not applied as at 31st w y March, 1929 ‘ 3,946 LESS redemptions ... 3,234,124 Debt as at 31st March, . 1929 ... -. "... £264.191,983 CLASSIICATION OF DEBT. Ordinary ... ... ... 151,488,052 War 70,881,269 Discharged Soldiers ... 8,287,656 State. Advances ... 33,535,006 £264,191,983 Apart from war debt, which is, otf course, wholly unproductive, the great- ' er part of the ' remainder, raised for public works, Land-settlement, and \ State Advances, is self-supporting, the interest payments being provided by the. interest-bearing assets. Government’s borrowing policy is to see that as far as possible further debt incurred only for the purpose of providing tfor economic development of resources of Dominion, but no hesitation in providing capital required for State advances; land-settlement, and completion of trunk railway-lines. I COMPARISONS WITH PREVIOUS YEAR. Total revenue, comparative , increase 496,497 Income-tax, increase .... 37,148 Land-tax, increase ... ... 14,155 'Stamp .and death-duties, * increase ... 71,353 Total expenditure, com-, tive net increase ... ... 1,529,082 Interest, increase ... ... 278,147 Pensions, increase 91,307 7::; Electoral Department, 7*. increase 278,147 ' / Agriculture, increase ... 86,316 ' Education, increase ... 92,681 Samoan Military Police (new item) 27,374 capital EXPENDITURE ON PUBLIC WORKS. •' \ £ Railway construction, additions, and improvements 1,822,922 Main highways and roads 1,822,922 Hydro-electric supply ... 965,560 \ Telegraphs and Telephones 624,414 . i Public buildings (including f" ' schools 602,392 7.' irrigation, land, and river • - • improvements ... ... 282,806 Other public works 182,095 £7,659,580 * LONDON LOAN, 1929. £7,000,000 raised in January for—- '. . £ Public Works Fund (railwp way construction, roads, ' telegraph and telephone extension, etc.) 4,500,000 Hydro-electric power Works 1,000,000 j Railways improvement ... 1,500,000 j. _ Loan very favourably commented , upon in London financial papers. ( Loan obtained on better terms than other borrowing States. CONVERSION OPERATIONS. In addition to £7,000,000 loan ; V.' £11,729,496 of 4-per-cent stock maturing in November, 1929, was converted into 4s-per-cent stock maturing in

1948-58, on the basis of £lo4£ of the new stock iior every £IOO of ihe old. £17,833,996 of 1929 4-per-cent stock dealt with to 31st March last, leaving £11,274,356 still outstanding. Debt redutcions during year totalled £3,234,124. STATE ADVANCES OFFICE. Since the 10th December, 1928, / when Government assumed-office, to .the rth •July last, loans authorized as follows—- £ To 2,006 settlers 2,420,790 2,749 workers ... 2,384,995 4,7.55 ...'£4,805,785 Loans paid over during same period, amounted to £3,055,742. The position does not permit of any reduction in,interest rates at present, but it is hoped that lending rates can be started on downward path before long. RAILWAYS AND ROAD TRANSPORT Total expenditure on highways and roads for year was approximately £3,350,000. if present drift not checked taxpayer will shortly have to find £2,000,000 a year tfor railway losses. Summary of Government’s policy: (a) To complete trunk lines as backbone of system: , (b) Not to build further : short branch lines where transport needs can he adequately catered for by motor services on a good motor-road : (c) To investigate the position of the present branch lines with , 'a view to doing away with those that are found to be obsolescent :• (d) To write down the Railway capital by the amount contributed thereto from revenue, and cancel the present subsidy tfrorn the Consolidated Fund: (e) To co-ordinate the railway and motor-road construction policies : (f) To take, steps to bring about coordination between road and rail transport services. Taupo Railway and Palmerston North Deviation stopped as circumstances do not justify the large capital outlay involved. .! ■ LAND SETTLEMENT.. Vigorous policy essential for return to general prosperity. ' : Loan, authority ,of £5,000,000 to be provided. Certain waste lands to be brough. into cultivation.

Large estates to be purchased and cut up for closer settlement. Government will pay a fair price, bu! will use compulsory provisions otf Act i necessary. Land-development Branch of State Advances Office to be established tc. assist in development of waste lands. AGRICULTURE. • _ Resources of Agriculture Department available to assist men on land, pm ticnlarly new settlers. Special research activities being undertaken in connection with various stock-disease, mineral content of pastures, etc. education. ... System to be amended to give bias towards farming. Country schools to be consolidated. Correspondence School to be extended to embrace secondary education. Child-welfare work to be widened. IMMIGRATION. Government proposes to continue the restriction on assisted immigrants to separated families, single women, domestic servants, and juveniles. UNEMPLOYMENT'. Standard rates .of pay for ' relief workers increased from 9s and 12s per day to 14s. Additional labour employed by (Public Works, Post and Telegraph, and Forestry Departments. 1 Total cost to State of onemploy ment relief during year amounted to £879.618. EARTHQUAKE DISASTER. Government 1 provided transport and other facilities for ' refugees. Special committee administering the Central Relief Fund. 1 Restoration of roads, bridges, railways, public buildings, etc., is being carried out. Legislation to ibe introduced validating grants to Fund by local authorities, including Harbour Board« and private savings-banks, etc. STATE SUPERANNUATION FUNDS Total cash shortage, not covered by subsidies in past, amounts to over £2,000,000. Whole position to be investigated. BANKING AND CURRENCY. Amendments to banking legislation necessary. Existing position to be maintained in the meantime. POST AND TELEGRAPH DEPARTMENT. Net profit for. year approximately £39,000. Excess of withdrawals over savingsbank deposits for year .£859,559. Sales of Post Office Investment Certificates for year approximately £550,000. PUBLIC TRUST OFFICE. Estates under administration increased by over £4,000,000. Ne,t profit for year £29,467. STATE INSURANCE OFFICES. Government Life Insurance Department issiied reversionary bonuses totalling £324,871. Life insurances in force at end of year £22,084,471. State Fire Insurance Office earned surplus of £75,600 after allowing for rebate of 12i per cent to policy hold- - ers. ’ Accident Branch shows surplus of £17,592.

TAXATION. Analysis of expenditure”shows that charges on taxation largely of a rigid nature, and that Budget cannot be balanced wholly by administrative economy. Government has no practicable option but to increase taxation until causes of economic difficulties can be dealt with. Burden to bo placed in such a man*ner as to assist the Government’s .land-settlement policy, and with a view to disturbing business and trade as little as possible. Proposals: — 1 J Land-tax:: Super-tax to be impbsed on all farming-lands of an unimproved value in excess of £12,500. Also njortgage exemption to be reduced. Income-tax: Income from farms of an unimproved value of £12,500 or over to be subject to income-tax, but amount paid in land-tax will be allowed as deduction from income-tax otherwise payable. In effect this means payment of. land-tax or incometax, whichever is the greater. Income-tax exemption for children to be adjusted. Present age-limit of eighteen not to. apply where child, on account of mental or physical permanent incapacity, unable to earn his or her own living. Also present exemption apportionable over whole income-tax year. Primage duty on imports increased from 1 per cent to 2 per cent. ESTIMATES FOR 1929-30. Estimates carefully scrutinised and reduced to a minimum consistent with maintenance of existing services. Departmental revenue overhauled. ' Consolidated Fund— Ordinary Revenue Account— V - . . £ Estimated revenue 25,172,000 Estimated expenditure ... 24,910,000 Available for supplementary estimates and contingencies £262,000 £ Estimated Customs revenue 8,400,000 Estimated stamp and death duties '. 3,614,000 Estimated land and income tax '. 4,893,000 CARDINAL POINTS OF THE GOVERNMENT’S POLICY.

(a) To take immediate steps to obtain a balanced Budget,' as this is a matter which cannot wait for the fulfilment of the more far-reaching proposals. (b) To provide a permanent cure for the unemployment difficulty and pave the way for decreases iiv the rates of taxation, by increasing the prosperity of the Dominion on a solid basis . through vigorously fostering land settlement. . .

• (c) To provide all the capital necessary to enable the State Advances Office to cope with, the demand for loans for development of farms and the building of hoiises for workers.

(d) To accelerate the completion of the trunk railway-lines, in order that these, unfinished works may be brought into operation and made - interest earning and at the same time provide work for the unemployed. (e) To deal with the present unsatisfactory financial position of the Railway, and institute a comprehensive system of co-ordination in transport, in order to check the present dangerous drift in. economic waste, which otherwise will undoubtedly impose greatly increased burdens on the taxpayers.