FINANCIAL STATEMENT.

Manawatu Herald, Volume XLII, Issue 2156, 29 July 1920, Page 3

FINANCIAL STATEMENT.

In presenting the Financial Statement to the House on Tuesday, the Right Hon. W. F. Massey, Minister for Finance, said: — “I have pleasure in submitting the annual statement showing the financial position of the Dominion as at the 31st March, 1920, also my proposals for meeting the requirements of the current financial year. The total revenues of the Consolidated Fund for the financial year 101920 amounted to £26,081,340, whilst the expenditure for the same period /totalled £23,781,924, the excess of revenue over expenditure thus being £2 ,299,410. This result of the year’s operations is eminently satis factory, and furnishes ample evidence of a sound financial position. The effect of the disturbing influences of the war has not been felt so severely in New Zealand as in other countries. There is no lack of employment, trade is generally good, and prices fox; our staple products are satisfactory. Although sea transport was restricted, the Government succeeded in ma king arrangements which permitted the export during the year of large quantities of our meat and other produce at remunerative rates, thus enabling the country to meet, without any great inconvenience, the additional taxation necessitated by the >var.” ITEMS OF INTEREST. MAIN RESULTS AND PROPOSALS. Estimates for 1920-21: Revenue £27,712,700; expenditui’e, £26,893,497; surplus, £819,203. RESULTS. Total revenue, £26:081,340; total expenditure, £23,781,924; surplus, £2,299,416. Total accumulated surplus at 31st March, 1920, £17,538,977. Public works expenditure, £2,021,153. Redemption and renewals effected, £3,762,745. District Treasury Office opened at Auckland. Customs revenue and excise, £5,185,727. Land and income tax receipts, £7,927,068. ■ Total expenditure on mental hospitals, £303,755. Influenza epidemic cspc:aditHir|j £194,000. Post and telegraph revenue, £2,096,757. Savings Bank deposits, £29,758,448. Excess of deposits over withdTa wa Is, £3,796,070. Stamp revenue, £3,344,933. Land revenue, £1,452,352. 201,897 . acres, costing £2,352,452, purchased during the year for settlement of discharged soldiers. 23,021 sub-divisions of land affecting 4,858,340 acres made daring eight years ended 31st March, 1920. Advances authorised to 12,415 discharged soldiers, £12,610,264. Total area proclaimed under Discharged Soldiers Settlement Act, . 1915, to 31st March, 1920, 883,301 acres. Swamp , land reclaimed, 3,700 Peres. Total area of State forests, 5,021,280 acres. State Advances Office loans, £2,169,480. Advisory Air Board and a Committee of Defence established. Coal-production during the year decreased by 186,402 tons; in 1919 compared with 1914 decreased by 500,000 tons. Coal imported during 1919, 455,494 tons. Expenditui’c by Education Department out of Consolidated Fund • appropriations, £2,031,825; under Education Acts, £130,066; and out of national endowment revenue, £78,988. Total payments made for supplies purchased on behalf of Imperial Government, £133,091,240. Gross public debt at 31st March, 1920, £201,170,755. Sinking funds at 31st March, 1920, £7,257,564. Net indebtedness per heal, £165 3s.

Kct annual interest and jinking fund (.'barges, £7,249,426. War expenditure to 31st March, 1920, £76,9:36,826. War gratuities paid, £4,917,638. Retrospective allowances paid, £706,804.

Financial assistance to soldiers, £261,218. Repatriation, £1,011,306. War pensions paid, 1919-20, £l,812,419. War loans raised, £80,089,025.

PROPOSALS. War-loan subscribers to be given option of converting debentures into inscribed stock. Estimated Customs revenue, £6,000,000. System of hospital subsidies to be revised. Maternity homes to be increased. More purses for country districts. Telephone facilities in country districts to be extended. Trial aerial mail services to be inaugurated. Closer settlement of fertile lands to be promoted. £5,000,000 additional for advances to discharged soldiers. £2,500,000 additional for purchase of land for settlements (soldiers). • > ’.i Extension of operations of swamp-land drainage. Further provision for reafforestation and planting of sand-dunes. Legislation in regard to pure seeds and. noxious weeds to be introduced. Establishment of Agricultural College in North Island, boys’ agricultural clubs, and State farm in South Island.

Wheat-growing to lie,encouraged. Wool profits to 31st March, 1919, £1,620,000, to he distributed.

£600,000 provided for acquisition and development of New Zealand interests in Nauru and Ocean Islands.

£200,000 to he provided for naval defence. '

Assistance to mining industry. Housing. —£1,000,000 to be provided. Supplies of building material to be regulated. Building operations to lie restricted to facilitate erection of homes. Limit for'each house to be increased, and local bodies, to ho enabled to purchase land as well as build houses.

Measures limiting profits to he strengthened. Additional assistance to pensioners. Military and miner pensioners to lie allowed to draw pensions notwithstanding temporary absence from the Dominion.

Pensions Appeal Board to he established.

Provision for speeding up completion of. important railways. Light railways to be constructed. Tire-tax to be imposed and utilised for upkeep of main roads. Additional amount of £3,650,000 to be provided for public works and hydro - elec trie schemes. Further assistance to immigration, and Department to be reorganised.

Increased expenditure to be provided for education services, and extended programme for school building. Welfare of children to be further provided by creation of bureau of infant welfare.

Development of trade with Samoa and islands of the Pacific.

High Commissioner’s Office to be strengthened.

Wages and salaries of Government servants brought into line with cost of living.

Principal of non-political control of Public Service to be extended. Finance Committee to consider Bills dealing with adjustment of taxation, including stamp and death duties, land and income (ax, etc.

Surplus to lie utilised for assisting Consolidated Fund. Loan certificates for small amounts to he available to the public.

Total to be provided by loans, including £40,000,000 for renewals, £24,800,000. Authority to be'provided for compulsory levy for certain loans. Legislation relating to banking to he introduced.

Register for New Zealand Consolidated stock, 1877, domiciled in London, to he opened in New Zealand.

Shipping and mail services to bo improved.

Westport Harbour to be taken over by Government. Scientific research to be- encouraged. Town-planning proposals. Economies to be effected in administration of all State activities. The Statement concludes as follows : “I desire, in conclusion, to state that owing to the unrest which at present obtains, and the demands that are being made for largely increased expenditure, 1 have fully and plainly set out the financial position of the Dominion, which I consider is satisfactory, if not altogether free from anxiety. Our responsibilities are great; nevertheless they are not greater than this country, with its wonderful resources, can support, and, always provided that its finances, are administered with prudence and economy, a prosperous future is assured. I he margin between (be annual increase in revenue and expenditure is diminishing to such an extent Unit increased expenditure in one direction must be mot by a decrease in another, or by the imposition of fresh charges. Honourable members will, I am sure, recognise that demands for concessions cannot be considered without regard to the financial consequences, and that claims for increased expenditure are not consistent with the demand for a reduction in taxation. We cannot increase our expenditure if we diminish our resources, as there is no greater reservoir of wealth which can be drawn upon at will. The heavy expenditure which was so cheerfully met during the war period cannot be continued on the same lavish scale, and there must be a tapering-off, with due regard to reconstruction requirements arid the urgent necessity for developing our resources; but economy, without parsimony, is essential. Anything approaching waste or extravagance must be eliminated from all State activities, so that full value may be ensured, to the taxpayer in return for his expenditure. In this connection the Government will, without fear or favour, party motive, or personal interest, conscientiously discharge its duty to the community—not in the selfish interests of any class, but for the good of all. What I have said with regard to the necessity for prudence and economy in the administration of the State applies equally to private finance and the possibility of over-speculation. In times of high prices people are credulous, and new schemes for the employment of capital are held out to subscribers in the hope of immense gain; but, as I have pointed out, our prosperity must of necessity largely depend upon a greater quantity of production and increased individual effort. The happiness and prosperity of the people of this Dominion can best be secured by furthering that spirit of self-reli-ance, industry, and thrift which has been characteristic of our people, who, notwithstanding any differences of opinion that may exist, are proud of their British citizenship,

and are pi’epared to do their duty at all -times in maintaining and supporting the principles of justice and freedom upon which it is'based.”