FINANCIAL STATEMENT

Hokitika Guardian, 26 July 1930, Page 3

FINANCIAL STATEMENT

DELIVERED BV MINISTER OF FINANCE

SUMMARY OF PROPOSALS

FIGURES FOR YEAR

(With the compliments of the Hon. the . Minister of. Finance.) .. OS FUND -i 'V. . -W#,Ordinary Revenue Account— M; p 4 ' . - - ... ' ’Revenue £25,349,861 I -|f pi •• ••• 25,200,882 v-'vSdr)ilus-'--li. i - £148,979 Balance ’" brought'>'fonvard, §ost., U; . Add— , V , •• - -. Surplus,': 1929-30 „ £148,979 ( Advance to Native Trustee V i: ~_jsipaid. (net) 33,000 ||:;»tal £2,635,520. \ Less— Advances to Rural Intermcd,*siate Credit Board £162,000 Subsidies to local authorities for unemployment relief 111,728 towards restoration of public works damaged by earthquake ... 3,516 Charges fa/idy .expenses of ( raisingiloahs ;\.VK.;. ...• 1,039 tDv ■ ; ; ,'t; >• • : •, • x „:i i 2. .2, ; * 2 ™. 188 j —; ( Balance This balance iwas made up as'follows... i ;s. ; • Cash ’'.l:-£1,510,239 Imprests flnv^fm^nts V* >j..l j... ' .713,966 £2,3-56,337 /Revenue apart from items earmarked for , highways ••-/showed-- comparative increase over previous year X' ... £1,482,972 Customs increase, including i £310,000 from additional ; primage .... 942,794 Special land-tax produced . 240,000 Remissions granted by “Hardship’’ Commission 118,000 ikscqss... of;, income-tax over ■..# . .-|landrtkx; On/ farming in- -• f • i'co'mes S ... V.. 47,500 =#* . - •Expenditure /increases— - .1Jntei’Cst . and t: debg' repay- -' y ; y r ' I menit ' 586,501 Pension's ..and fatnily.~.allow-. r:r:. rrr~r .. .ances Subsidies to Hospital Boards and local authorities 62,390 Petrol tax and other car'T'lharked revenues for highways) 274,394 Subsidies to Supernnua‘4tion Funds and National Proficient Fund ... ... 176,832 Departmental votes 40,946 LONDON LOAN, 1930 _ , raised in May,, 1930 for— • JPuhlib Works—General purDevelopment oL tric-power works ... :.. 500,000 Construction of and additions to railways and roll-"iffg-sto'ck 500,000 £5,500.000 Ilf 22- 2 v ,:: — 7 — j | i :,;■*}; ' y ~ v •; ; - Loan very favourably commented on by leading financial papers. Loan obtained <on better terms than other borrowing States. SUMMARY OF DEBT OPERATIONS. Debt as at Ist April 1929 £264,191,983 ■; Add new loans raised— Ordinary £3,576,145 State advances 2,144,075 \ £5,720,220 ' . Total ... ... £9269,912,203 : Less redemptions— Ordinary ... £766.350 War ... 1,097,744 Discharged soldiers 425,770 State ‘advances, 238,996 jv- ■■■ £2,528,860 Debt as at 31 March 1930 £267,383,343 CLASSIFICATION OF THE DEBT. Ordinary £154,297,847 Waf 69,783,525 Discharged soldiers 7,861,886 State advances 35,440,085 £267,383,343

DOMICILE OF THE DEBT. London £146,580,502 Australia .4,276,750 .New Zealand 116,526,091 £267,383,343 War debt during year reduced by £1,097,-744, the total reduction over the past eight years amounting to £12,462,148. on .approximately. .15 ; per.~c(mt.. Government’s borrowing policy is to restrict^(uijtheiv loan expenditure as,Jar as possible! to directly, product) re) wbd:s, but will not hesitate, . to .borrow the necessary capital for purposes considered to be essential for the economic development-of the-country. ! CONVERSION' OPERATIONS. £29,490,852 4-per cent, consolidated stock which fell due on Ist. November 1929, was disposed of as follows: Converted into other stock £21,759,496 Redeemed out of the pro- . ceeds of special London issues for purchases on the market 575,949 Redeemed out of the proceeds of New Zealand issues in redemption . ... 5,968,786 Redeemed out of public debt repayment moneys and sinkiitg fund ... -... : ' 1j186,621 } I: . . . i ? ; > ,-j; ' £29,490,852 1 • CAPITAL EXPENDITURE ON PUB- , Lie Works. p . / j . ■ . . |: i : , . , . . Railway construction, ad- , ij ditions, and . improve-: , / ments - £3,315.612 Main highways and roads .2,288,217 Hydro-electric supply . ... 581,975 •Telegraphs and telephones 657.291 Public buildings, (incliid- ■ ing schools) . 817,970 Irrigation, land and river . improvements 283.872 ;.Other public, works ... .... 136,881 Totail ... ... ... ... £8,081,818 (Preliminary State balance-sheet pre-, pared as at 31st March' 1929). 2 STATE 1 ADVANCES OFFICE, try. Tike substantial . benefi ts accruing, from the activities of the State Advances Office increasingly availed of. /During the year, applicants to the -number of 6,754 received loans amounting to £6,923,807, as. follows : Loans granted to settlers, 2,191—. Amount £2,187,955. .. ;; Loans.granted to settlers under Ru)ral Advances 'Branch, 779—Amount £1,406,860. Loans granted to workers, 3,776 — Amount £3,323,412. Loans granted to local authorities, 8 —Amount £5,580. There were, in all, 6,754 loans granted and the total amounted to £6,923,807. From 10th. December 1928 (when the United Government assumed office) to 31st. March, 1930 loans totalling £4,219,895.were granted to 3,495 settlers, £3,851,452 to 4,413 workers, and £5,580 to eight local authorities, making a grand total of £8,076,927 granted tp ,7,916 applicants. RURAL INTERMEDIATE CREDIT Scheme proving a decided success and contains great possibilities ,of further benefit to the •primary industries of the Dominion. At 30tli. June, 1929, total advances amounted to £165,480. Repayments coming to hand in a very satisfactory manner. LAND-SETTLEMENT. Importance of successful land-settle-ment fully realized by the Government. All idle Crown lands suitable for farming are being made productive as soon as possible. During seventeen months ended 30th April last 545,100 acres of all classes of rural lin'd' suburban Crown lands were selected' finder- various tenures, the number of‘subdivisions being 2,459. Anticipated that some 161 additional fanning sections will be offered for selection before 31st. July, Development of Native lands also vigorously pursued) Intensive wofrk at. present being carried on under fourteen separate development schemes, while prelim in airy operations .being undertaken on.elven other schemes, involving a total area of 54,000' acres. Thirty, properties purchased for land for settlement puiposes since the United Government came into office, comprising an area of 55,592 acres, involving total purchase price of £525,000 and providing a total of 149 subdivisions. AGRICULTURE. Increased production especially necessary at present time to compensate for reduced national income eonse-

quont upon lower prices obtained fos Dominion’s primary produce. u hole of resources of Department of Agriculture arid Scientific and In elustrial, Research nniui available for man on the land. Special research activities undertaken in connection with destruction o; noxious weeds, health and nutritioi of animals, etc. wST*' ‘ SECONDARY INDUSTRIES. Development of secondary industries complementary to successful land-settle ment. Requirements of local mark'd sufficient to justify more extensive secondary industries. Government sisting (in addition to Customs duty ci imported goods) by technical investigations by Department of Industrie.' and Commerce. - EDUCATION. Requires to be developed on more practical lines. Select Committee’s report- .on education at present being considered by the Government. Country schools being consolidated. Correspondency School now provides a secondary-'course. Special tuition', for backward children. Total cost of education now exceeds £4,500,000 per annum.. UNEMPLO.YMEN.T-. RELIEF. .....,.. Additional, employment- provided on Government(works'/ .Total, expenditure by State for last year whs £1,415,592. At 31st. March, 1930, T 0,197 men employed on Government works. Subsidy payable to .local,authorities on labour costs of relief works undertaken in urban and suburban districts increased from £1 for £1 to £2 for £l. Legislation now before House giving effect tp main recommendations of Unemployment Committee’s report. REPARATIONS. Matter of German reparation pavments now p'aced on satisfactory basis. GOVERNMENT /IRADING DEPARTMENTS. With exception of railways, all trading Departments . earned profits for the year. EARTHQUAKE RELIEF. Total subs-iriptions received in excess of £147.000.' Government arranged for reopening of main’roads add restoration of public buildings. : • RAILWAYS. ' 1 ■’ Gross revenue for year £8,288,116 and working expenses- £7,358 i 1,859. Total net loss for year £1,211,269, due basically to com petition of motor transport. 5 ’ Advance !6 ; F'''£Lso,ooo' made from Consolidated Fund to enable expenditure- to lie met., Subsidy on branch lines and isolated sections discontinued as from Ist April 1929, J.. Expenditure being drastically -,overhauled. and unremunerative services curtailed ,or eliminated.. ■ Royal 'Commission -set up. to review whole position of Railways. TRANSPORT., iCo-ordinat:on essential and regulative provisions necessary. Matter cannot be left to be settled , by unrestricted competition, which Dominion cannot afford. Legislation to be introduced this session.. HIGHWAYS. Total expenditure on roads and highways now approximately £3,600,000 per annum. Wasteful duplication of transport system has been faseilitated by development of highways and roads. Finances of Main Highways Account being adjusted.' Petrol-tax to be increased from 4d to 7d per gallon to provide necessary additional funds. TAXATION. Budget for ensuing year cannot wholly be balanced by economy in administration, and additional taxation unavoidable. Large falling-off in Cost dins and land and income tax anticipated owing to trade conditions. Total shortage of over £3,000,000 required to be met. Shortage to be made good by decreases in expenditure amounting to £1,684,000 and the balance from additional taxation. PROPOSALS. Customs duties increased to provide approximately half of. £1,660,000 required mainly in respect of goods of foreign origin. Duty oil tobacco increased. Allowance previously made for underproof spirit abolished. . Duty on New Zealand brewed beer increased. Duty .on imported timber increased. Additional duty on cinematograph sound films. Land and Income Tax.—Special land-tax, adandoned and all farmers owning or occupying land of an unimproved value of £7,500 or over liable to assessment for income-tax on farming as well as other income. Also, adjustments on account of allowances. Rebate of 5 per cent, on land-tax otherwise payable will not be allowed this year. Deduction of 5 per cent, on capital value of property for income-tax purposed to be amended to 5 per cent, on unimproved value or taxable bnlnnce, with appropriate allowance .for depreciation. Income-tax raised by 10 per cent.

Taxation of life-insurance companies to be adjusted. > Stamp uuties.—Totalisntor duty increased from 2i per cent, to 5 per cent. • Death duties increased by 10' per cent. . Amusement-lax increased; also sundry other increases in stamp duties. ESTIMATES FOR 1930-31 Estimates rigorously reduced to minimum consistent with maintenance o existing services. ESTIMATED REVENUE. ,Customs £8,590,000 Beer Duty • 615,000 Film-hire tax ... 30,000 Motor-vehicles—Duties, .licenses, etc 1,915,600 Stamp and death duties ... 3,780,000 Land-tax . ... ... 1,240,000 Income-tax ... 3,960,000 Interest on public moneys 805,000 Interest on capital liability: Railways 1,380, COO Post Office 510,000 Interest on Public Debt Redemption Fund 985,009 Other receipts 1,370,000 £25,12'},GC0 ESTIMATED RESULTS , The, ‘ estimated expenditure ! for the year fully set out\in. the Estimates, Tlie position for the financial year to be: ; Revenue ... ■,£’25,120,060 Expenditure— . f. ■ Permanent appropria-. • *v tions ... .... ...V17,289,000 Annual votes ... ... 7,585,060. , £24,874,00 , leaving £246,000 to provide for supplementary estimates arid contingencies.