GENERAL ASSEMBLY.

Kumara Times, Issue 1153, 9 June 1880, Page 2

GENERAL ASSEMBLY.

HOUSE OF REPRESENTATIVES* [Per favor of the Government.] FINANCIAL STATEMENT. Wellington, June 8. In Committee of Ways and Means last evening, the Horn Major Atkinson said : Mr Seymour, when in November last, I had the honor to submit for consideration to this committee the usual Fuancial Statement, and it was thought by many persons, not unfriendly to Government, that in estimating the probable deficit for which it would be necessary to make provisions by Ist April last at £BOO,OOO, P had taken & far too gloomy view of the financial position. I regret to say that my anticipations in this respect have been more than realised, and that the financial results of the last nine months proved less satisfactory than I ventured to predict as probable. I, for one, have not the least doubt that the present check to our present prosperity (a check which has been felt at the same time throughout the civilised world) is temporally only ; yet bearing in mind the effect this check and other causes which might have been controlled, have bad on our finances, a,nd also the amount of public debt as compared with onr poputhe duty of enonomy and retrenchment has become clearer and more pressing, It is therefore gratifying to know that the plain facts of the financial position which I had the honor to submit to Parliament last session have fully drawn public attention to this vital Subject, and produced in the public mind a determination that the annual expenditure ! shall be brought within the annual revenue by reducing the one as far as compatible with efficiency, and, if necessary, increasing the other so far as may be needed. Government propose, sir, to ask Parliament to. give practical effect to this determination,' My task, therefore, this-even-ing considering the evtrayagant habits into which we have fallen of late years, is oue of unusual difficulty, in the execution of which I venture to hope for at least as far as £t measure of consideration as the committee have kindly extended to me on former occasions. Sir, in submitting the financial posals of the Government in the last budget, T said it would bo impossible to surmount our. monetary difficulties and escape the dangers of our- position without something like a completejife^ - modelling of finance, both local and general, without careful administration by Ministers, and without the exercise of much thrift and self-dldnial -on 'the part of all classes of the co’rh Am oifcy. In accordance with-the opinion ’so ‘ex-/ pressed, certain measures were iptra- : daced by the Government Land paaked by the House last [session )ipndifyiQ£. very considerably our fiscal system, but leaving untouched the- ayate^ (J pf ; local' taxation and subsidies. Upon -this

subject, I sMd “ the important question of local finance was far too large to go into this session, and, therefore, will |say no more upon this subject fiow, ex\jpt, sir, that Government fully recognise the-fact that it is their duty to bubmit to this House, upon its first meeting next session, a scheme which shall place local finance on a satisfactory and something like a permanent basis, and by satisfactory, Government Understand placing local bodies in such position as will enable them to obtain, as far as possible, sufficient funds for all n’ecessary works, while drawing a broad and distinct line between local &Ud general finances, and such a scheme Government will endeavor to mature before next meeting of Parliament." To-night I shall endeavor to redeem this promise, and trust, however, that the committee will not expect too much. The subject is one beset on every side with difficulties, and nothing but a strong determination on the part of local bodies to rely more on their own resources, and less upon external help than hitherto, will render any satisfactory solution of this vexed (question possible. But before submit* ting to the consideration of the committee the paoposals of Government, it will be more convenient that I should place before them the results of transactions for the last financial period, which through a change in the financial year comprises nine instead of twelve months of the year 1878-79. I will first explain the actual financial result of the year ending 30th June, 1879. It will be remembered that I . estimated that after payment of all liabilities outstanding at the close of the year, and taking credit for the assets of the year, there would be a deficit £131,834. The actual deficit on the transactions entered up to the 31st March last, in respect to the period now referred to, proved to be £69,418. There remained unpaid, however, on that date, liabilities to the amount of £70,193, including. £5.0,000 owing to the Bank of Mew Zealand, as, the balance of the overdraft of the late Provincial Government of Otago, while on the other hand, further assets amounting to £6821 had been realised since 31st March, so that the total deficit including assets and liabilities on 30c.h June last was £133,790, instead of £131,824, as estimated. I had the honor to state to the committee last session that I estimated the expenditure would amount to £3,110,262, but this sum was increased to £3,139,539, by passing Supplementary Estimates. The actual expenditure to 31st March last, ihcluding advances in lands offices government amounted to £2,772,276. It wi|l r be. recollected by hon. members that .last session I proposed the future •receipts within the year, should be held be held to be the revenue of the year, and expenditure made within the year to be the expenditure of the year ; but for reasons Which I shall presently state when 1 speak of final results of the period ended 31st March, 1 shall ask the committee to permit me to postpone giving effect to that proposal Until dealing with the present year. In accordance with the provisions of the Public Revenues A ct, 1878, and Arnendbient Act, 1879, the returns of liabilities outstanding on 31st March, certified by several under-secretaries, has been laid before the Parliament, liabilities amount to £342,966, from which, however, I deduct £70,193 already referred to, as belonging to the period of/-.3oth June, 1879, leaving £272,773 in respect of the period I am now ■ reviewing. Adding this sum to the actual expenditure to the 31st March, amounting as I said to £2,172,276, vfe get a total expenditure of 3,045*049, as against £3,139,539 the estimated amount. There being an .apparent saving of £9,440. A comparative return of estimated expenditure of each class with, liabilities added has been prepared, and will be appended to this statement. I desire, however, to print out to the committee that included in the apparent saving of £94,450, there are several items arising merely from estimates and which cannot be legarded as savings ; such interest and the 20 per cent of land fund payable to counties. On the other hand there are certain necessary payments for services not provided for, which reduce of course tile amount of the total net saving for the period under the head annual appropriations, where J ,’lono. savings can really be effected. The expenditure in eight classes out of eleven, after including outstanding liabilities, was £93,020 less than the estimated arnppnt, or including ns it should £13,100 for stores purchased for railways and unexpended amount, was £105.720. The remaining three classes of expenditure was £9036 over the estimate.. Hon. members muse recollect that six mouths of the nine practically elapsed before Parliament rose, and Government) tWefove, think they may

congratulate themselves on accomplishing so considerable a saving in a short time. To conic to the estimate of revenue of the colony for the nine months ended March 3Cth, the total revenue received during the period amounted to £3,133,759, to which add £500,000, receivable on Ist April from Land which the committee will remember was included in the estimate, making together £2,183,759, the estimated amount being £2,445,200. The revenue, therefore, fell short of anticipations by £261,441. From returns which will be appended to the statement, when printed, lion, members will be able to see the heads of the revenue under which the deficiency arises; Vi shall, however, refer, to some of the leading items. The revenue from Customs did not reach the estimated amount by £47.335.