Manawatu Herald. FRIDAY, OCTOBER 17, 1879. THE FINANCIAL STATEMENT.

Manawatu Herald, Volume II, Issue 16, 17 October 1879, Page 2

Manawatu Herald. FRIDAY, OCTOBER 17, 1879. THE FINANCIAL STATEMENT.

+■ • The Financial Statement delivered by Major Atkinson on Tuesday last, reveals a most unsatisfactory state of affairs. The speech of the Treasurer is a model of clearness and conciseness, and he has earned the thanks of the country for the straightforward course he has adopted. That his statement, in its simple array of facts and figures, contains some heavy blows at the late Ministry, cannot be doub cd. When they took office, they gave a distinct promise to cut down departmental expenditure by £100,000 per annum. Not only Avere they unable to accomplish this, but, according to Major Atkinson a large increase has gone on from the time they took office. He referred especially to the following nine departments : — Law and Justice, Postal and Telegraph, Customs, Marine, Native, Militia and Volunteers, Constabulary, and Public Buildings. That list, it will be seen, embraces the principal departments of our public sendee. The estimated expenditure upon them for the year 1877-8 was £866,000, Avhereas the actual cost was £876,000. For the year 1678-9 the Government estimated the expenditure at £908,000, but Major Atkinson assured the House that " the amount absolutely expended was £956,000," so that " in those nine departments to Avhich he had referred, the expenditure had risen from £866,000 to £956,000 during the half-year just passed." Referring to the expenditure upon native affairs, he showed that whilst in 1876-7 that department cost £34,000, it increased the following year to £43,000, and in 1878-9 actually reached £58,000. A reduction of £"4,000 had been made last year in the salaries of officers of the Native Department, but against this was the fact that " contingencies " (that is. expenditure not submitted to the House) had risen from £4,000 to £16,000. Included in this amount was £4,000 for expenses at the Kopua meeting, and £1,000 for that at Waitara. The Treasurer declared that " the present financial position of the country Avas an exceedingly grave one, and would require the serious and immediate attention of the House." He asserted that at the end of the present year there would be a deficiency of £663,000, and went on to say that he fully expected the estimated income Avould not be realised. His predecessor estimated it at £3,442,000, but he believed the Me Government over-estimated the* revenue from taxation, services, and land fund to the extent of £249,000, which, added to the actual deficiency of £663,000, Avould leave a total deficit of £912,000 to be made up, either by retrenchment or increased taxation. Major Atkinson asserted his belief that his estimate would prove strictly correct, as " he had had the advantage of having the experience of a few months of the present year, and therefore Avas better able to estimate what the revenue would be than his predecessor." He added : — " The sum mentioned was so large that he had no doubt it would take hon. members somewhat by surprise, and some time to realise. It meant that that House must very seriously turn its attention towards considering the question of the financial condition of the country. And it meant that not a moment must be lost in doing so." He asserted that " during the quarter then just ended, the receipts did not come up to the payments then being made by some £330,000," Avhilst the subsidies and other necessary payments had not been made ; hence the Government were compelled to ask for immediate power to raise £200,000 upon deficiency bills, to enable the public services to be carried on during the months of October and November, by which time he anticipated the House would have determined how to deal Avith the deficiency. Referring to the Public Works Department, Major Atkinson showed that during last quarter the expenditure was £712,000, whereas only £216,000 was available, so that the Department had already expended £500,000 out of the new loan of five millions. They had entered into engagements under which £738,000 had to be paid before December 30, and there were further engagements under which £902,000 more would have to be paid before Juil*T3O, ; 3^BO. »<ln other words, by the 30tu of

June next, upon works which they were already committed to, and without any new works whatever, they would have spout £2,160,000 out of the now loan." These figures were furnished hy the Under- Secretary. Engagements had been entered into for tlio purchase of native lands whidi would require payments amounting to £84,000 before the end of the year, whilst a million of money would be required in June next to conclude purchases already undertaken. Ho therefore asserted that the Government had undertaken to spend £2,000,000 out of the new loan " before they had decided news from home as to whether they were likely to get any of it." The above is a resume of the clear speech made by Major Atkinson upon the financial position of the Colony. That we have gradually drifted into danger is evident, and the only outlook is — increased taxation. Major Atkinson, in the course of his speech, admitted that " from what he had been able to learn of their predecessors' expenditure he could not see there was anything unreasonable in it, and if the present system was to be continued, he did not think they would be able to reduce it to any very great extent." We may therefore accept it as a fact that the Hall Government do not expect to be able to make any great reduction in the expenditure. The late Government accepted the same position as inevitable, for we find !>uGeorge Grey, who followed Major Atkinson, asserting that " the late Government had prepared measures which but for the unconstitutional conduct of the Governor would have been in operation, and which would have met the deficiency. The taxation which they proposed would not have pressed unduly on classes unable to bear them. If the present Government adopted the same course of taxation they would receive the support of that side of the House." Increased taxation is therefore inevitable, and it would appear that the problem how to increase the taxa tion so as to make the revenue and expenditure balance without pressing unduly upon any particular class of the colonists, is one that will tax the best energies of our statesmen.