FINANCIAL STATEMENT.

Nelson Evening Mail, Volume VI, Issue 217, 13 September 1871, Page 2

FINANCIAL STATEMENT.

The Examiner of this morning contains a telegraphic report of the Financial Statement, from which we make the following extracts : — FALLING OFF IN THE REVENUE. With regard to the revenue of the past year, Mr. Vogel said, there has been; a decrease on every item. That the revenue had proved to he £116,000 less than was estimated; and £82,000 less than was received during the previous year. . The Government deplored this falling off, but at ihe same time disclaimed responsibility for it. The attention of the House was called last year to the condition of the country, and that condition was urged as a reason for h stening on measures for the construction of Public Works, and the promotion of Immigration. The Government certainly had not expected so large and immediate a reduction in the revenue.but that reduction had amongst other things proved the wisdom of the Assembly in giving effect, without delay, to .the' Immigration and Public Works Policy. Many cases, doubtless^ contributed to occasion the falling off in 'the' revenue. Amongst those causes, was the fall in the price of wool, but he was glad to be able to congratulate the Committee upon the recent remarkable rise in the value of that article. The reduction in the value of property, and the comparative suspension of public works must be included amongst the contributory causes of the reduction in the revenue. They limited the expenditure of the people, and therefore, diminished the Customs Eevenue. It was not indeed, necessary that a reduction in the Customs Receipts should be accepted ,as a consequence of an unhealthy condition of the country ; since it might be attributable to the exercise of frugality, or might result from a desire to accumulate wealth. Indeed, the reduction might follow wholly, or in part, from a larger use of local productions throughout the country. The Government were of opinion, that the depression which had overshadowed the Colony for a long period, was in course of removal. Yarious causes had led to this change, such as the increased yield of gold, the rise in the price of wool, and other products; and the prospect of a largely increased settlement throughout the country, which would follow the introduction of Immigration, and the construction of lines of communication. THJS PROVINCES. After stating that for the past year there was a deficiency ot £126,000, the Treasurer went on to say that the first duty of a Government when the expenditure exceeded the revenue, was to consider whether the expenditure could bot be reduced. The main feature of the present Budget/ ■was- ; a material reduction in the expenditure of the country. , It would be ensily understood by the hon. members, that in determining to make such a reduction, the Government could not fail to look in the direction of that expenditure which related to so large a proportion of ihe Public Service — he meant the money put apart for Provincial purposes, and Provincial services. It was fair to consider how far the Colonial contribution to the Provincial revenue, should be reduced, on account of the Colony undertaking what otherwise would have to be performed by the Provinces; and also seeing that that now proposed involved a reduction of Provincial duties, how far Provincial institutions . could be made less costly than they had hitherto been. Much of the expenditu-e of the last Fession came under the head of.expenditure, which it was originally contemplated, should be borne by the provinces. It was right that a corresponing reduction should be made in the contribution from the general revenue for Provincial purposes. The Government had plainly declared last year, that if the existence of the Provincial system interfered with the carrying out of the policy of Public Works and Immigration, then Provincial institutions would have to be modified ; but at the same time, until it was proved to be necessary to take action in that direction, they had desired not to do so. Experience had now shown that that in some respects the legislation of last session required amendment. ■ i . > There was one feature of the policy of last session, the success of which could not be exaggerated— he meant the system of subsidising Road Boards. The expenditure necessary from the adoption of such a system, was one which,' the Government considered, miglit fairly be defrayed out of the loan. The adoption of that course would be proposed, and it w'ould also be proposed to increase ' the amount of the subsidy from' £50,000, as paid last year, to £100,000. By, taking charge of Immigration, and to a large extent, of Public Works, together with the payment of the subsidy to Eoad Boards, , -the Provinces would be. saved from a large proportion', of their expenditure. . The question arose, there-, fore, whether it was fair to the taxpayers that additional taxation should be imposed, in order to maintain Provincial revenues at their present rate. whilst much of the Provincial expenditure.: and some of the-, .principal Provincial responsibilities w e, re , assumed by the - Government of the' colony. The answer must clearly be, "No." The Government had decided further to relieve the Provinces of the coßt of the service hitherto held by the Assembly as Provincial .services, and charged against the particular allowance, to each Province. After making these provisions, the Government proposed to pay, ,tp the Province, as capitation allowance 15s. £eY hea<i of ihe population, and to reduce by one-half the special allowanrie paid last year to the North Island "Provinces, and the County of Westland. The aggregate result ofthese modifications would be to give to the Provinces: £25,000 less than they received last year. ! i . The: Government believed that the time had arrived ''. when Provincial Institutions should be! made less'costly. It was intended to propose that -Superintendents should be ex-officio members of their! respective Councils, and that the number ; of n members of the Councils should be verynnuch reduced;! In certain cases where Provincesbwere^ unable to fulfil their functions, it was. intended.) to jp^'fepose that the jGenexaljQovfirnment, should take charge of theirJ'flflSirflP^lr-We ♦Assembly desired it, these reforms, or some of them, could be made to

depend upon the«option of existing Superintendents and Councils;.-. A special arrangement . as/to the^ountj^ofl Westland would be submitted.. toSthe H<fus£ .The object of all these would \je to kimpligr Provincial Institutions, and to reduce their cosfcsgF* V : 'f « >* PROPOSED KEDTJCTIOIT IN EXPENDIItTRE. The proposed expenditure for the year showed an immense reduction. Lust year the Estimates' were.,, for an expenditure of £1,050,00Q, in-, eluding £50,000.; for Road .and £34,000 Avas subsequently added for Supplementary Estimates ; this year the total Estimates, irrespective of the £.100,000 for Bpad Boards, which would be transferred to the Loao; was £896,000, to which would have to be added £40,000, the moiety of the Stamp duties, to the Public Works and Immigration Fund, and £46,000 on account of the deficiency from the- past year, making, in all, £982,000 .to be provided for... This showtd_a very large saving, and the Government desired that their present Budget should be known as the Retrenchment Budget. A comparison ,of ,the various services showed a considerable saving in most of them. The Post-office Department, including provision for the Californian service, showed a saving of £118. He would ask thehon. members to recollect that although there; was a very great. retrenchment, that retrenchment was on unproductive services; that out 1 of the revenue large pro vision. wa-S: made oa. account of the deficit of the past year, and that one-half « ; f the amount; of thePtamp duties was proposed to bepaid in hid of Public Works. .. f :..- T\ r ATS AND MEANS. INCBEASED TAXATION. He would now ask the Committee to consider the question of providing for the Estimated Expenditure of £982,000. The Government were averse to proposing fresh -taxation, but they, con-: sidered'that the" Stamp Duties should be brought up to the amount which- it was promised they would yield last year. The Government would, therefore, submit some additions to thosa duties, but those additions would be such only as they really believed ought to have been included when the : duties were first proposed. The House would also be. asked to impose a moderate duty upon cereals, rice, and timber. He- mentioned this, although he did not intend to take credit in Ways and Means for the amount of such duties, but those Ways and Means would make apparent so small an excess, that taking into account the possibility of there being Supplementary Estimates, and also of some unauthorised: expenditure during the year, he considered the excess shown would be insufficient; therefore, the House would be recommended to impose duties on cereals, rice, r,pd timber, so . as to raise thereby an estimated amount of £7500. Whilst that recommendation would be made strictly on revenue grounds, it might with propriety be urged that" the fiscal policy o neighboring; Colonies forced such: a proceeding upon New Zealand. The various items of Estimated Revenue showed on the whole a reduction of £61,000 upon the revenue estimated last jear, and £55,000 more than the actual receipts during that year. The operation of the Distillation Act was producing a - very Jargeloss to the revenue Ihe Government did not wish to show any harsh nes9 towards those who had embarked their capital in this industry, still tlie result' was -very unsatisfactory. The Kevenue would lose £25,000 on account of the,-spiritß already manufactured in the Colony, which manufacture had led to the consumption of 53,000 bushels of grain. Such a loss was rather a large one. to Be expended by way of encouragement for such a production of cereals. In 1867, the : Cuslioms Duties amounted to £3 16s 7|d per head of the European population, whilst at the rate now proposed, it would amount to only £2' 18s" 6d per head. The Government would be glad when the time arrived for making absolute reductions' in the Customs Duties. Besides the reduction in the contribution per head, consequent upon increased population, the surplus upon the year would bef £7, K OO, and it .might, be cecollected that this, result was arrived at without the -imposition offurther taxation, unless ..the., addition which it was proposed to make to the Stamp Duties could be considered in that light ; and the Estimates, it would 1 be -remembered, provided for a-payment of £46,000. out of the revenue; towards the deficiency of the past .year, as well : as £40,000 out of {ordinary revenue in aid of. Public Works. He believed that this result was very much more favorable than the majority of hon. members had expected. The Treasurer concluded his speech by expressing his opinion that the* degression which had overshadowed New- Zealand^ would do it very much gOD^l, if the retrenchment which that depression made ■ necessary, \ became.the rule of the Colony in the future.