TELEGRAPHIC

Inangahua Times, Volume IV, Issue 98, 21 November 1877, Page 2

TELEGRAPHIC

[BY ELEOTJiIO TELEGRAPH.] [PEB PRESS ASSOCIATION.} ■'. I — . . FINANCIAL STATEMENT. &i,V, — The lion the Premier, a Few even- < ing's agQ., in, hi,s statement of the proposed . future policy of tbo Government informed the House th.a,t it was our dosiro to con- \ solidate the administrative system of tho i colony, and to, introduce a clear compro- | hensive, economical;, and stable plan of I finance, This, sir, is. a work on tho ad- i visability of which I think all lion mom- ] bers must agree, aud, ajl will no doubt i agree that p, work of such a nature cannot 1 properly bo accomplished without full I consjdqrati^n.TJnder thejso circumstances, , '

there are two courses open to us. Firstly, 1 to ask the TTquso to vote supplies for a period pf three Qr- four months»to adjourn to meet again at an early period of next year, when wo should be enabled to place all ouc plans before you in a m,fttqrcd state, and then to take your verdict on them. Secondly, tq take up th,e Egti • mates of the of Government, m,ake make such modifications in then* proposals as we might doom necessary, and occupy ourselves during the recess in fully reor« j ganising the present financial and departmental Bystems of the colony. Sir, the latter is the course which we have deter» I mined to adopt. At the same time that we resolve to do this, tho House has a right to ejfpect that we shquld, at least, j indicate our views upon the present financial positiqn of the colony, The character of the change we propose to make, and the necessity in our opinion that exists of making those changes. The late Colonial Treasurer has hid before this House an elaborate Financial State* ment, furnished with, all the tables and returns that usually accompany such an important document, I therefore, sir, feel myself somewhat relieved of the duty of entering to any grent extent into minute details. X wi'l at onca admit, sir, that it would be impossible for mo to attempt to place more clearly before this House than the la^e hon, Colonial Treasurer has done, all details in reference to tho different loans, which, this, colony has from time to time contracted. Nor have I the time or the means at this very late period of tho session to reviso then?, the Government has no other course to adopt but to accept them. So also, with regard to the expenditure, anxious as we are to ei^ect changes of system by means of rearrangement, economy, and consolidation, yet as more that one third of the present financial year has already elapsed, and as much patient enquiry is required to prevent changes and re-organisation, of this kind becoming mischievous and even dangerous, to the public service I feel that I have no. other course open to me at the prcseat time than to accept the estimates of ex« penditu.ro nearly as they appear in the tables recently submitted by the late Treasurer. If, however, by the circum« stances of tho case lam necessarily pre« eluded from dealing with details, I ask tho attention of the Houso for a short lime while I endeavour, from my point of view, to indicate briefly tho tendency of our present system of finance. Tho crisis to which it is rapidly leading, and the only available remedy that I can see possible to enable this colony without imposing enormous burdens upon the people to maintain its credit, and to bring to a successful issue the grout policy of Immigration and Public Works to which the colony is pledged by the contracts it has entered into iv relation to the works that aro now in progress besides the pro* misos to be initiated. Earlier meetings of Parliament aro necessary. One striking defect in tbe present system of conduct* ing the public expenditure is, that the General. Assembly frequently meets somo time after the. commencement of a new financial year. After,ihe meeting of Parliament, a period of several months 3omctim,es elapses before Mio Act of Appropriation passes tho 4 ssem °ly. Under &uoh a system, the. expenditure is conducted without a.ny appropriation having been made, and is incurred only upon the authority of. Imprest Supply Acts, wjiich direct the moneys to, be charged in. a manner thereafter to, be expressed! in tho appropriation of the year. From this, it results that the Government is able to incur aojr expendituro.it pleases. By simply placing on the estimates any amount for any sprv,ieo which it thinks, proper to undertake, and tho duty of the Assembly resolves, itself rather into the ratification of expenditure incurred during several mpplhs of the year, thai; a careful i watching, of amounts which it is asked to vote. To. cijre this system, qpo of the dv.ties of the, prosent Government will be either to alter the time of the. commence- j ment of the financial year, or to, take care the Assembly meets at an eai;lier period, sny no later than the first week in June. TBEASDIIY ISLI.S AND OfflEE. FLOATING tyEBTS. Sir, in, ll^e financial year 1874(,-75, there were ou.tslaAding. Treasury Bills, that is loans raised to, xoeet deficiencies in the revenues of previous years, and: charge* able on Consolidated Fund to tho extent of £400,000) the amount was due and payabje in that year ; but tho ConsolU dated Fund w.as unablo to bear so large a charge. It was, however, hoped that it might be gradually reduced by. tho pay ment out of revenue of £100,00(^ per annum until tbo> whole amount was extinguished. I£ that sanguine expectation had been realised thero would bo outstanding now, only £200,000 of Troasury Bills of which, sura a moiety woujd vanish concurrently with tho present financial year, but the present tendency is in an opposite direction, for the amount of Treasury 13ills is now above £800,000, moro than double the original sum referred to of 1874*75, and instead of thero having oceurod any doorcase in this par« ticular form of the colonj''s indebtedness tho original sum, may now safely be muU tipliod by two. Not only have we been unablo out of tho superfluities of the present to. pay oJF the differences, of the pust, but tho necessities of thp present have Bhow^n thomsolves to be fur greater than before, and tho charge upon the (^pusolidatqd Fund has, now- become sq

large that to meet these Treasury Bills out of tbe fund upon which they are by law a proper charge appears to me to be hopeless. In tho year 1875 70 a further issue of Treasury Bills was requisite in aid of revenue to thp amount of £172.000, la the la3t year a further sum of £2Q,000 became necessary, and the late Colonial Treasurer proposed to repeat a similar temporary borrowing this year, •• as a grant in. aid," but for this occasion the fund upon which the advance is to be secured is not the Consolidated Fund or the ordinary revenuo of the colony, but the Land Fund of tho provincial district of Otago, a simple loan would have been raised on tho security of Canterbury had ifc not been found possible to take £55,000 in cash from its territorial revenue such a condition of affairs, Sir, as this is not considered by us in any way satisfactory tbere appears to bo a sad want of that equilibrium, that eveness of balance in our financial system which if we intend to maintain our position aa a solvent stato our reputation as prudent, careful colonists, and above all our credit in tbe English money market, Nor, sir, is this all. If it were, perhaps it would not bo so difficult to secure an even balance betwoen our means, and our requirements, as I fear may possibly bo the case, or to use a homely phraso (o learn how to mako both ends moot. Last session this House finally determined to abolish the Provincial System, and in so doing had to make all provincial liabilities colonial liabilities for which this Houso has to mako precision, tho burden which has been undertaken by that policy is, in my opinion greater than ever was anticipated. Tho difficulty of ascertaining the amount of provincial liabilities seems to ba very great, and that of finding the means wherewith to liquidate them when ascertained seems tome to bo still greater. Up to the 80th June last tho sum of £237,500 had been advanced from loan to meet payment: of provincial liabilities, and there existed on that date overdrafts at the bank on provincial account to the sum of £105,888^ or an aggregate sum of £343,388 which total may be reduoed by £45,888; being the amount of balances in hand to meet liabilities on provincial account thus leaving still unsupported tho sum of £2)9,500> Sir, so much I have said to the 30th Juno last, and from that time I may be allo/.ved to travel upon a different, aud perhaps more uneven track. There are known to bo at tko date on which I am now speaking still further liabilities on Provincial Account outstanding amounting to £209.766 red livable, by about £30,000 due from Land Fund and other resources, leaving a total to b»' provided for in some manner of £2<l9\?G6, and the House I think will agree with me that still greater liabilities in this direction will yot most surely present themselves. In the statement of the liabilities which I found in preparation for the late Treasurer they appear to reach a total of £660,000. There is a sum of £104000 to be paid in January next to the Wellington Trust and Loan Company for money lent to carry out the important reclamation improvement undertaking on the foreshore of the harbor of this city. It is true that the work contracted for promises undeniably to be a reproductive one. The land is security for the oultay. and very good socuritv to. bub still, sir, the works are not yet finished, and are not hkey to bo completed before or ou the date upon which tho payment becomes duo aud it can hardly be expected thafc sales to any extent of sections can take place for some time to come. The money no doubt can he reborrowod upo.i the same security, originally, and if there were no gr.eajtop didiculties to face than this my task would bo much easier than I apprehend, it w,iy be. From tho statement of the late CoJ. Treasurer the House will have, seen, that there remains no available balances, fcom loans upon which I can preteud permanently t,o, change any of thcao payments ; but, on tfie other hand, it in absolutely necessary, to. ro. into the money market under disadvantageous ciruumstances to uorrow still, further, and to attempt to. do so upon acting like reasonable terms, wo must bo prepared- to show a state of finance characterised by soundness and stability. unstable cnAjtAcrEn of recent coi<on;ui. TINANCE. I ask, Sir, has there been exhibited any stability in tbje finance of this Colony during the recent past. 13y the Abolition Act a financial arrangement supposed to bo of a very definite and permanent character was arrived at in reference to the.Lond Fun.d, this grand arrangement promising durability and stability never even saw tip. dayhghjt of Us existence, bujfc fell sti.'l born, and gneafc difficulties would have arisen from thj^ cause had not certain provisions in the. Financial Arrangements Act of last scssipn pomp to. tho rescue of Colonial finance. These are tho very provisions thp late G,overnmon,t proposed again to alter, this year, thus removing every trace of flxoty, and finality from, tie finance of the Colony. Novr, Sir, to meet all the exigences, to make the large payments on account of interest that this Colony hns periodically tomsko to pay salaries, and to provisos for tho innumerable otiicr matters, that have daily to.be met. What, I ask, is tho present stato of tho Treasury chest. I hnvo been accustomed, Sir, to deal, and I prefer to deal with cash. It is very much more satisfactory, and more convincing to 4pal with cash than \yith mere book-

keeping accounts. With the latter, it is not dilh'cult to manipulate balances, with the former, it is not easy to sliiw two sovereigu.3 wh,ere in, reality only one exists, STATE OF THE PUBLIC ACCOUNT ON OUlt ENTRY INTO OFFICE. On tho 13, th day of October last, tho day o" which this Government assumed office, there stood to the credit of the Colony altogether as shown by its bankIng accounts, the sum of £702,312 11s 3 I. Surely, sir, with such an overflowing Treasury as this, the House will wonder what need there is for any financial diQiculty. I shall at once proceed, sir, to show tbo House of what this balance chiefly consists. To the credit of tho Consolidated Fund there was £105.563 7s Bd, to tho credit of tho Land Fund. £541,548 lls GJ. I shall now lay beforo the House a full statement of cash balances in hands of bankers on the day to which I have referred, also a similar statement for comparison of the 16th instant, with tho amounts of the balances of each one of tho numerous departmental accounts. THE LAND FUND, ITS PRESENT POSITION. The wholo of tho Land Fund as appropriated by special enactment, tho Government has no power, however largo in any one year that fund may become, to touch one suilling of it for any purpose whatever beyond that amount which the Ja«' places at its disposal. Tho whole of the residue is to bo distributed in certain defined proportions to the counties of the respective provincial districts in which it is rnisrH. An accumulated and execssivo Land Fund under the present laws of this Colany can never be used by the Government even temporarily in aid of a deficient Colonial Treasury. Tho Land Fund this year, I feel pleasure in saying, will be largely in excess of the sum ostio mated by the late Government. The estimate was £743,000. To September 30th, there had actually benn paid into the Treasury the sum of £512,231 19i 41. I do not mean to say that I anticipate four times that sum os the land revenue for the year ; but I think it is quite reasonable to suppose that the respectable total oi one million will bp realised after ppying all subsidies to Municipalities, lioad Eoards, etc., as provided by law, the residue however large has to be paid to tho County Councils. I beg to call the attention of the House to the fact while the Land Fund receipts have on the whole been largely in excess of the esti* mate, that excess has entirely arisen from tho large sums realised in the provincial district of Canterbury, while in the other provincial districts the amount realised lias been much under the estimate. PBOPOSALS BEGARDING THE FCTURE DISPOSITION OF THE LAND FUND. Sir, although tho land revenue has nominally been regarded and treated as provincial revenue ; yet in point of fact and actually it has by various ennct« ments during tho past few years been gradually encroached upon, nnd absorbed to such an extent that in reality the idea that a large proportion is available for localisation is a delusion, only calculated to mislead the minds of the people as to the real position of affairs. Such proportion not being from the mo-tt* part derived Inorn actual land sales, but from ' Treasury Sills. Under such eircuraI stances, it is desirable that the subject should be placed upon a more certain an.l satisitictoly footing. With which view, and for the purpose of simplying tho public accounts, we propose to do openly and straightforwardly that which our predecessors. in office have hitherto been doing indirectly and disingenuously. Sir, we mean to make the Land Fund colonial revenue, subject to al-I the obligations which the Colony has undertaken in respect thereof. Such, as cost of administration, cost of survey, itmaigra* tioiii interest on provincial loans, and so forth. It is our intention, however, tint twenty per cent of the land revenue shall be localised by law for the purpose of being expended by tho loca^autborities on roads, bridges, and public w,orks within their respective districts, and further we shall ask Purhain.cn t to agree to one uniform land law, whereby the public estate subject to classification shall be sold at uniform prices through* out the Colony, whether on a system, embracing free selection, deferred payment, or otherwise. Sir, I wish it also understood that if administrative reform, and reduction of expenditure,, can be effected to an extent which may aliow of any increase of tho proportion of 20.70 per cent referred to such proportion shall have the benefit of it accordingly. On this subject, I desire (o add that while the circumstances into which the Colony has been permitted tc drift, renders it imperative that the land revenue should be dealt with as we have pisfc proposed. My colleagues and myself fully recognise that one of fho most legitimate objects of which the revenue ought to bo applied, is to render available for settlement the particular locality from whence it has been derived. In fact this ought fo, bo regarded one of the main conditions upon which the purchase money is paid. We are therefore of opinion that in apportioning the public revenue throughout the. Colony, such conditions shoujd be kept faithfully in view before proeoediu^ further. I may be permitted to say that, thp Governient looks forward to being enabled- to submit to this House, next session, well considered proposals, based upon sound data, whereby impor* tant districts may bo openpd. up. and connected wUb. the main railway lines, by means ot branch lines to bo. constructed only of the proceeds. of the land, which will bo rendered valuable and accessibl e. by such branch lines. There are afc, present, as honorable members are aware, extensive areas, of public territory throughout the Colouy, which are inaccessible for settlement, and which must conliuue to bo so until rendered accessildo by railways or roads. This is a matter in respect to which the Government locks with favour upon the aclicn that has been I take,n durmg thp present session by private nopmbers. We are of opinion, however, that it is a subject which in tho future ought to bo dealt with by the Government, and we shall be prepared to make tbat consideration which its importance deserves. PROPOSED NEW LOAN". Sir, I desire before I conclude to say a few words upon the views of the Government to the extent of the further borrowing powers to which we shall hay« to ask the committoo to assent. It has not been easy in tho midst of tho hurry of the session with all thp political, aud

dcnai'tmontiil business appertaining to olJjcos ou my hands to have next year lm-t von with a statement of our views on tliis sul -jpofc lo*niglir, nor has it been less difficult for my lion colleagues and myself to arrive at a <lftcrniin.it ion as to the sum necessary to bo borrowed to meet our present requirements. Sir, it is our:nlon'ion to nslc the ffouso ta consent to a loan of £4.000,000, feeling assured that tim whole of "tins amount will bo wanted. We propose, sir, to redeem the guaran- | teed debentures to proviso for our public works, for provincial liabilities, for other necessities of tho year, and for nil floating dobts novr doo by tho colony ; but them is also tho million due to the two banks I which wo hove not provided lor hero at present. We have loans raised ii\ London, loans *aised in Sydney, loans raised in this colony, and we have tho Treasury Bills rcforre I to. Tho Govemmont doeni it desirable that this system should cease, and that there should be but one sort of funded colonial indebtedness for thia colony showing at a qlanco tho entire debt. One current or working account showing our annual vcvenuo and expen. ditnrn undpr their several principal heads, and simplyfiing accounts and balances at present existing under tie heading of the Public Account should bo done away with, nnd that wo should, as far as pos« oible. have but. one creditor. 1 mean tho London monry market, the practice of concearing, perhaps, unintentionally, the amount of t lie colonial indebtedness by the issue of Treasury .Hills and tly? raising; of temporary loans in the colonies has an. effi-ct even wors« than imposing directly on the home creditor. It encourages (hopeople of this colony to fancy tlwt tllOtt 1 liabilities are smaller than they really are, and to agitato for a greater rxpcndiiuno thon tho colony can nff>rd. Fill lor details of then questions will be given, shea thy Loan Bill is brought dowu. TAX.UIOX. We shall, however, during the recent, seriously address ourselves to tho consideration of large r< ductions in the public expenditure which we have, reasons for believing can be carried out, and we will also earnestly com sider the question already discussed in this House of altering the preseufc system of taxation in this colony with a view of raoro equally and fairly distributing its burdens upon the whole commnity. Should our land receipts keep up I apprehend that it will not be necessary t » attempt to ra : se a la^or revenue from tho people than is now drawn from thorn, but 1 should tkat source of revenue fall oil' wo must bo prepared to submit to heavier burdens to keep our obligations to ourcroditors. and conduct the business of tho colony. After tho experience to be gained , during the recess wo shall be in a barter , position to tfil-r un opinion on the subject when Parliament meets next year-actual present position of receipts and expendis. ture. With this statement I propose to lay before the House a table marked No l % showing the estimated sevenue from \ all sources, including land and the i x jen*. diture for the pevsent v.ear based upon, , tho state of things which the Government found in existence upon taking ollipe. This document is. worthy the att.2ul.iou, of 'ho House.