PARLIAMENT.

Manawatu Standard, Volume X, Issue 20, 22 June 1885, Page 2

PARLIAMENT.

1 HOUSE OF REPRESENTATIVES. FINANCIAL STATEMENT.. .. (united press association.) : Wellington, Saturday, REVENUE AND EXPENDITJypE." i Tho . general results' of the year have • already been, published, 'and it- is ■■ only necessary I should briefly recapitulate them. The year 1884-85 was commenced : with a deficit of £152,111 For £150,000 of. this amount ■ deficiency bills were authorised to be issued, maturing on the • 3lßt March, 1886 ; the balance of £2112 was discharged out of the year's revenue. I proposed laßt year, that the £150,000 should nqt be turned into a permanent debt, and I s+ill hold to the same view. We must pay the amount off m the course of two or three years. The transactions <>f the consolidated revenue for the year 1884-85, after discharging the { deficit of '£2112 and leaving outstanding j the £150,000, shows a credit balance of £19,891, or, exclusive of the small deficit paid off, a surplus of £22,003. , • The total consolidated revenue of the year amounted to £3,569,494. There was a deficiency m the item of stamps, prineipa'ly occasioned by an expected in-,-creaßfli of postal revenue having by acci- . dent been twice credited m the estimate.. The railways also showed some deficiency while the Customs exceeded- to a. small, extent the estimate. The total deficiency m the estimate was £22^016. The expenditure, on the other hand; -was ;less than the amount voted by £23 > 852, in-' elusive of £5982 expended on services unprovided for, so that the result was the surplus m the year's transactions whfch I have already stated. Hon members will bear m mind that th'e surplus of £60,000 anticipated m the Budget last year was reduced subsequently by the. Supplementary Estimates and votes., . : . . • In the revenue was included an amount of £247,700, the. proceeds of debentures issued under the Consolidated Stock Act, 1884. Hon members are aware that thia! amount wil* issued to represent .the J equivalent of the increase of the sinking, fund for the •. oar. I shall, later on x ask • the attention' of. the Committee :to ; this, subject. : .'• . : .-.: •. . ... ' The expend itur«» for 1884 85 includes ithe . uiiidiseharged liabilities of _ the previous yeir, according to the: plan intro-. duced m 1880, of bringins,anlyi into the • year's accounts the .actual jexpen«iiture , and- receipts within that per.iod s . r 7; :'.'". * jpdblio woSks iPUND,;IBB4rBS. i The .balance at credit' of the Pubjio Works Fund, at the ehdbf March;- 1884, was £488,912. From the instalments of the loan of one million negotiated m January, 1884, £389,000 came to credit after March of that .year, and, from instalments of the million loan negotiated m January last, £845,000 came to credit before the end of March, 1885. There was also an amount of £100,000 from deficiency bills authorised to be issued last year m aid of the Public Works Fund, redeemable at th« end of the present month ; and we further obtained £500,000 of temporary advances. . The total amount placed at credit of the Public Works Fund during the year- 1884-85 was £2,327,025. The expenditure amounted to £1,336,727, leaving £990,---298 at the end of March last with which to begin the year. In addition thereto we had the balance of the third instalment of the three million • loan to receive. • £165,000, also the new loan of £1,500,000 recently, raised, amounting m all to, £2,645;298-; subject, however, to there-; deinption of; deficiency bills, -£100^000 j, the Repayment of- temporary advances, £500,000 ; and the advances to. be Ack, counted for :in the hands , of officers" £250,000. -=- ■-..-.. . . ... ; ; ! ; . '■ THE PUBLIC DEBT. . ' ~[ ! The ampijiit o± the public debt on thte* : 31st March," 1884, less the Sinking. Fsnd? Account was. £29,574,903^ The amount! .;■ of that deb£ on the 31st March, 1885, was . £30,649,099: . It was increased by -fresh "issues, and conversions-^the conversions | from a higher to a lower rate of interest, ' of course, having a tendency to a larger ' principal amount, but a less annual charge. The annual charge last year was £1,570,989, whilst this year it is £1,593,692, exclusive of interest, on de-. 'ficiency bills, and "on the million and a half loan. . The increased annual charge is to ; be accounted for by the interest on the additional million, ' and by £(54,000, which, owing to the conversion operations, escaped coining into charge during 1884-85. In ref er-ring to this item last ; ..year, I estimated it at about £50,000 only. On the other hand, there arb re- I ductions consequent on conversions. As we have not the particulars of the new issue of debentures to take up -the con- I verted drawing debentures, we estimate the interest for iffiese under the old head, as also the sinking fund. < - ■■'■■■■ ! < -. . . .; The time has ,c£n?e ; round when we must consider the general opening up of thecountry, espebially those, parts m which .the ., pireseii V meaaiV ' sire ; small. To base_the aM we f^hder'offttie present means of the recipienVs^/svoufd Tie ; to give to . :those :who' . have,: rathei? tHatf those ! who want. We must remember jin the spirit of the old provincial aid rendered I to young districts; thai' the- feeble re- j quire special sustenance. '■•'. The assistance cannot be based on the means* of each, larger aid niust be given hi proportion to the poorer districts. Our proposal, then, is settled subsidies extending over many years, but divided after, a plan which will give greater consideration to the poorer districts. The scale will adjust itself, that is, as a district becomes richer its receipts, though, perhaps larger, will be based on a lessor scale. This is not the place to fully discuss the proposition. I mast refer to it to an extent little more than to elucidate our financial proposals. -It is, however, necessary to explain that the long term of years to which we propose the Colony should bind itself has for its object to settle the finance of the local bodies and enable them to borrow on the security of. the subsidies. We are, moreover, dis-. tinctly of opinion that the local bodies should be released from tutelage. The conditions under which the subsidies should be expended should be prescribed and the Boards be held responsible for the proper expenditure of the money;' but we do not approve making the expenditure subject* to the supervision of the Government. The experience ot the Roadaand Bridges Construction Act, and the enormous labor it has devolved on the Public Works Department, show the fallacy of & system m which the responsibility is divided. We can never have a satisfactory system of local government unless the ratepayers are made to feel that they have no one but themselves on whom to depend for a wise expenditure of the corporate funds. Let the more interested absent themselves trom the district or be indifferent to the proceedings of the local bodies, but let them understand that; they do this at their own risk, and that there is no tutelary genius watching over the interests they neglect,, "r. Ons ; 'liear.s. ,. at times Reproaches levelled^ at -local, bocliea because of tb^igreafc.nu^bQrj^d of the many people engaged on thfenfcj,". if these bodies overlap and repeat ' each other's work, there iB ; of . course objection to ■them ; but if they do distinct 'work I-npt only see no objection to the lodal-bodie3; ; behig divided amongst a 'great number of persons, but much advantage to' it." •A--theoretically-perfect local ■ system would be that m which nearly all the individuals, with the consent of thor fellows, rendered each his share of labor to the general good. Although we may stop short of so wide a division, here surely can be nothing to take

exception to hi a division of labor that, for example, would give to som* capable persons purely municipal duties, to others attention to the harbors, to others care of the public libraries, and so o». : • ■ ■ ■ ?• ■ ; . ' It is, however, chiefly my duty noir to deal with financial considerations, and I have to say that the Government consider that from a fiscal point of view the proposed .■endowment of local districts is amply warranted. Apart' from the contention t/haye,' submitted, that it is for the welfare of the whole x;6mmun> —, ity that the several interests should help each other, the expenditure proposed is a wise investment. The opening up country by roads arid brills enormously increases its value — I m*ivn its intrinsic, . not speculative, value. We shall thus by means of the subsidies, be constantly ad* ding to the amount of property available for direot taxation. - - ' - The unequal expenditure during the last three years on roads, bridgei, and analogous local works is a striking pie* m favour of the more regular system w* now submit. A statement of the paii expenditure is furnished with the usual tables. We propose to repeat the Roads and Bridges Construction Act, but to fulfil the obligations incurred under, it. We propose that part of the charge of the subsidies shall, for five years, com* out of loans ; but the sum proposed from this source will- be very much less than we have grown into the practice of talc* . ing for these purposes from borrowed money. The amount 1 of ' subsidies to local bodies we shall submit is a sum not exceeding .£300,000 per annum fof twisnty-five years, of which one-half fqi fivfe years shall be provided by loan. Wf propose that m this amount shall be con.* tamed some special subsidies to gold* fields counties, and we intend still to eon* tinue the* rating of Crown lands, but the Crown's liability not to extend the ratM beyond fd m. the £. We shall submit a power to the Governor to arrange t with .local 'bodies for making roads specially required to open up lands newly sold or about to be sold. I cannot refrain from adverting to one special power which w» desire to place at the optional disposal of local bodies— a power which is as bens* fical as his likely to be profitable — I al« lude to providing d wellinghouses, ' with small areas of Jland attached, for laborers all over the country, at moderate rents, or on terms of purchase by instalments* Suppote, to take an example, that a local body. puts up a house at a cost of ;£BO on. .a piece' ; of land of the -value of i*3o j«r 5 " ;j£4o, the tbtalcost would yield a gooa; rrtiiurnat^s a'weekvi^with-.a. right to tn^i i the fee-simplt mabout 14 years; or, at 5b a week; a bright to the fee-simple ia. about ten years. We propose to exempt, these dwellings whilst under leaae from' seizure for debt.- They, may be erected by hundreds all over the Colony. They will give to the laborers resources' and jojeans of comfort, the want of which has been apparent m older countries. Th« local bodies, will. run no risks, for theiw properties will constantly acquire addi* tional value, and be good security for tho : Uability upon them. . As to th« proper* ties themselves — I am supposing land* :to be used m the vicinity of towns, and country townships — they will become, within the periods mentioned, of groat value. ' - . It is intended the subsidies shall only be one-half foi the present jear. Tho ; reason is this : it i» necessary to fulfil ail the engagements for roads aud bridges either promised or entered info. including those under the Roads anC Bridges Act. The amount required for this purpose is rery large, and a half* y.ear's.subsidy for. the present year seems sufficient. The amount of £300,000 whaeh. Ihave tiitfhtietied is the maximum aitUpunt which frill be allowed, based oa f , ral£B. It is estimated that according to o \\\e present rates it will amount to about . £250,000, and for this year one-halt of ; thstfe will be £125,000. We submit thst : ,fotthis yeat the consolidatsd revenuo •ftUall coiitribute £75,000 of tb»t amount. - J i'i)d | that £50,000 shall be coqtrib.t.d frjtir* the Public Works Fund. The subsidies' will include Small contributiqus to towns, and larger ones to road ■ districts and counties. This is irrespectir* of tb« treatment which we propose to adopt with charitftble institutions aud hospitals. I will ask hon. members to suspend tboir 1 jhdgincut on the sub]*ect until all th« moaßureß are before them. We will, if acceptable to the House, at once bring dowu the local government and oharitable aid measures. Therar* three ia number. We will move the second reading, and explain the nature of etch, . aud then adjourn the debates until all of them are before the House. Hon* members will then be able to amply consider them as a whole, and take such course concerning them as commends itself to their judgment. I ami awar* that by this mode of proceeding we «ha!| not bo pursuing what are considered good party tactics, bnt a consideration of the kind is insignificant compared with the great advantage members will enjoy m having before them the measures m their iutirety with their nature fully explained.. : .