Financial Statement.

Manawatu Herald, 10 July 1902, Page 2

Financial Statement.

SURPLUS OP £270,488.

On Tuesday evening the annual Budget was read by Sir Joseph Ward, acting Colonial Treasurer. After a reference to the close Of the South African war and the illness of the King, the statement proceeded The revetlde proper of last year exceeded six millions, the highest in the history of the colony; the actual figures dre £0j053,070 Is 6d, or £234,451 in rxcCfii-! Of the estimate, and £209,864 9s 6d in excess of the revenue received during the year ended March, 1901- This has been obtained not ollty Withoiifc extra taxation, but in spite of large concessions made in Customs duties, in railway rates and fares, and in the adoption of penny postage. The Customs exceeded the estimate by £91,116; railways by £109,488; notwithstanding the gift to the colony of the penny postage, stamps by £5171. Our expenditure last year was abnormally large, reaching £6,895, 914 12s 2d, or £416,211 2s lOd in excess of the year 1900-1, but £2787 7s lOd within the estimates of the year to which the expenditure relates. Interest and sinking fund ’ have gone up £58,828. Oar old age pensioners cost us £10,861 more than the preceding year. ( There was, however, a saving of £12,748 in ‘subsidies for all services. The expenditure under permanent appropriations increased by £62,445 over the previous year. My own department, . Working Railways, is answerable for an increase of £135,939 over last year’s figures, This additional expense had to be incurred in order to cope with the very largely increased traffic, to meet which some 445,000 extra train miles had to be run. Twenty-three miles of new lines were added, and many additional train facilities were introduced for the comfort and convenience of travellers. £270,483 is the surplus at the close of the year. The available ways and means for the year amounted to £2,797,312 2s 9d, and the ordinary expenditure £2,143,252 14s. The operations in the New Zealand consols account were small, only £8935 being deposited, this result being due to the better rate of interest obtainable for other investments.

The grois public debt on the 81st March, 1900, was £49,910,245 ; on the 31st March last it was £52,986,447, or an increase of £3,375,202 for the year. The net public debt on the 31st March, 1901, was £48,567,751, and on the 31st March last it was £51,887,681, or an increase of £8,279,880 for the year. Government Advances to Settlers’ Office maintained its volume of business.

Twenty • eight estates comprising 114,672 acres, were committed to the control of the Lands and Survey Department during the year, and 85,023 acres were thrown open for selection, and 69,929 acres were selected by 230 persons. Crown Lands.— 2x59 selectors took up 1,094,086 acres, of which 572,050 acres are comprised under pastoral runs, the greater portion of the balance being allotted mainly under the resi dental and improvements conditions of the Act.

Public Health Department had purchased a property near Cambridge containing 1000 acres and house of twenty rooms for £4OOO for scientific treatment of consumption, and a similar sanatorium is shortly to be secured in the South Island.

Receipts from tourist resorts at Rotorua, Hanmer, West Coast, etc., had amounted to £5491. The amount of old age pensions paid last year was £207,468, and it is estimated £225,000 will be required this year/ Revision of land values had increased Land Tax by £12,000. Revenue this year estimated at' £300,000. Income Tax—expected increase £6OOO, raising estimated receipts to £185,000, which with the £300,000 of land tax makes a gross total of £485,000 —a sum greater than has ever been received from direct taxation.

It was intended to concede a redaction of 25 per cent off the Mortgage Tax, equal to £25,000. For roads and bridges £337.643 was voted and £338,669 was spent. The sum of £47,706 was also spent for roads on goldfields. Working railways—Taking the years 1895 to 1903 I find that the passenger traffic has increased by 3.450,558; sheep by 1,304,939 ; goods by 1,480,786 itons; and revenue from £1,150,851 to £1,875,568, an increase of £723,735The expenditure for „samc period has ' ,A. ••

the of employees has increased from 4957 to 8313 Concessions in fares and > freights has amounted to £470,000 since the lines bad been under the Government’s control. Railway reductions—The Government has decided to make further reductions this year upon wool freights and passenger fares; also in rates for small lots of dairy produce, butter, cheese, eggs, bacon, poultry, honey, and manures, and in the extension of period of free return of stud horses, cattle and sheep. These concessions represent in round figures a reduction in rates of at least £40,000 per annum. The chief direction that the passenger redactions will take will be for long distance fares, proposed to keep the universal system of charging that now prevails upon our railways in operation, with this material alteration, that after 50 miles the charge will be reduced for both first and second class by per mile for distances of 51 to 100 miles, and then a further reduction of £d par mile for all distances of 100 miles and over. Arrangements are being completed to start the dairy school at Weraroa Farm, Levin. The total estimated expenditure out of our ordinary revenue account for current year is set down at £4,987,063, which is £91,149 in excess of last year’s expenditure, and £88,361 more than last year’s estimate. This year’s estimate and last year’s expenditureinterest and inking fund increased by £89,000. A large amount of additional loan money is responsible for this. The expenditure at the close of the year is set down at £5i9°7,063, and the receipts at £6,083,500. Wa therefore have an excess of receipts over expenditure amounting to £96,437, to which amount has to be added the sum of £370,488 brought forward from last year. These two sums added together amount to £366,927, which will be available to meet transfers to the public Works’ Fund and such further appropriations on the supplementary estimates as hon- members will place at our disposal. New loan—The Government have very carefully considered the financial position, and also the imperative need to bring our railway works, which are in course of construction, to a paying point. We are assailed on all side by demands that more energy should be shown in prosecuting works which are in hand, but it must be admitted that we cannot continue a public works policy without being properly provided with the necessary money. The Government has therefore coma to the conclusion to ask the -authority of Parliament for a loan of £1,756,000 to be allocated for the following purposes :—For the construction and completion of trunk and other lines of railway, for the construction of roads, tracks, and bridges, £450,000; for additional rolling stock and the relaying of permanent way, £450,000; for the purpose of developing the goldfields. £50,000 ; for telegraph extension £50,000', Portion of the - money will be borrowed locally. The debate on the Statement will be commenced on Tuesday.