THE FINANCIAL STATEMENT.

Manawatu Herald, Volume XXXVIII, Issue 1565, 17 June 1916, Page 3

THE FINANCIAL STATEMENT.

SUBMITTED TO THE HOUSE LAST NIGHT. The Minister of Finance (Bight Hon. Sir Joseph Ward) laid before the House last night the Financial Statement. In doing so, the Mini ster said that, notwithstanding the disturbing influences of the war upon trade and commerce generally, the country’s finances are in a very sound condition. It was stated in last year’s Budget that ,in view of the anticipated fall in revenue and the increased burdens which would be cast on the Consolidated Fund by I he necessity of providing for war pensions, interest and sinking fund on war loans, and other similar charges, a very considerable increase in taxation would be necessary, and, subsequently, legislation was introduced and passed by the House to enable the additional revenue to be raised. I am pleased to be able to inform the House that, owing to the freedom of the seas having been maintained bet ween New Zealand and the Motherland, and other causes, there has been a very considerable revival of trade. The export from this country of meat and other farming produce has been continued at remunerative prices, and the producers of the Dominion have experienced a very favourable year. These circumstances have made it possible for the community to meet the extra taxation of last year without inconvenience, and 1 have thus been able not only to provide for the additional charges on the Consolidated Fund, but to show, in addition, a good surplus for the year, amounting to £2,1(56,0 77. Deducting from this surplus the sum of £149,047 carried forward from the previous year, there is left a net. surplus of revenue actually received during the year of £2,017,030. In announcing this large surplus, I wish to remind the House and the country that the longer the war continues the greater will become our annual burdens, and that consequently the expenditure of the year just concluded must not be taken as the maximum of the expenditure of the current and succeeding years. The payment for interest and sinking fund in respect of war loans will show a very considerable increase for this and succeeding years over the amount paid for last year. Two items alone will entail an additional expenditure this year of over one million sterling. YEAR'S OPERATIONS. For the convenience of honourable members I now summarise the most important items relating to the financial operations of (He past year : A loan for £2,(100,0(10 for public works successfully Jloated within the Dominion. The establishment of a reserve of £3,325,000 in London. Redemption and renewals of loans falling due in London up to 31st March, 191(5, amounting to £6,274,953.

Conversion of loans falling due in New Zealand maturing up to Ist December, 1910, to the amount of £208,900. Conversion of loans falling due in New Zealand maturing up to 31st March, 1924, amounting to £1,891,100, into a. new currency of twenty-live years. Treasury bill in Dominion paid off, £1,950,000. None have since been issued. Net surplus of the year’s revenue, £2,017,030. War loans received up to the beginning of May from Imperial Government, £8,500,000, PROPOSALS*. I also place in concise form the new'proposals submitted to honourable members ; Reduce public-works expenditure. Repeal mortgage-tax, and substitute au income-tax on .sums invested on mortgage by owners. Abolish duplication of incometax by exempting in New Zealand income earned elsewhere within the British Empire, and which has. already been taxed there. Provide for annual bonus out of profits of Public Trust Office to beneficaries of estates. Provide for war bonus during war to employees of all branches of the Public Service whose paxdoes not exceed £315 per annum. Provide £2,000,000 for internal expenditure. Provide £500,000 for -purchase of land for soldiers. Adjust conditions • by legislation to meet the changes war has brought about in regard to banking. Provide for acquirement of 45 per cent, of profits realised by war conditions. Provide a proportion of moneys required in aid of war finance by issuing war bonds in New Zealand. Provide a tax of 5 per cent, on all incomes, exclusive of those obtained from Avar profits. To regulate the transfer of moneys from the Dominion except for legitimate trade purposes. To regulate the rate of interest chargeable on deposits. Provide for financial assistance to friendly societies. Provide for borrowing an additional £12,000,000 for war purposes. In conclusion, the Minister said : It now only remains for me to say that I fully realise the tremendous growth of the public debt due chielly to the great xvar, but although our responsibilities are increasing enormously, there is no need for misgivings as to the future. -New Zealand 'lias wonderful natural advantages, and owing to this fact and the pat-

riotism of the peu])le, we are in the fortunate position of bein*>- able to meet all demands upon'our finances. Individual sacrifices, no doubt, have to be made. This is inseparable from the renditions that now exist, but the resourees of the country as a whole are more, than sufficient to bear the increased strain. 1 remind the country that there is a sinking' fund for the repayment of all loans, including those raised, and to be raised, for war purposes. The renewal and conversion of loans completed during the year for some years to come will greatly help in providing further financial reyuirements. The future financial outlook may be reviewed with confidence. It is not at any time a pleasant (ask to submit to the country proposals for increased taxation, but in view of the justice of the cause for which the Motherland, with her allies, is now lighting, I do so in full confidence that the people of this Dominion will be in the future as they have ever been in the past, ready and willing to shoulder the additional burdens with unflinching courage. I feel sure that they will shrink from no sacrifice which will help in the overthrow of an unscrupulous enemy who has forced an unjust war upon the British Empire and those great countries associated with her. I thank honourable members for the courtesy and patience they have been good enough to extend to me.