FINANCIAL STATEMENT.

Nelson Evening Mail, Volume VII, Issue 199, 21 August 1872, Page 2

FINANCIAL STATEMENT.

Iu the following abstract, which has been kindly forwarded by the General G-overnmeDt, the amounts of money are, for convenience, generally stated in round numbers. The Colonial Treasurer (Mr Vogel) delivered the Financial Statement. He commenced by remarking, that he had a more agreeab'e task than that which devolved upon him .last year, for he had not now to speak of deficiencies or of impaired revenue. When last session he reviewed the results of the year IS7O-71, he led the committee to understand that, on the close of thfi accounts for that yeaT, there would be a deficiency of £76,912, together with. £70,000 of overdraft, milking a total of anticipated deficiency of ai £146.(100. He was glad to say that the deficiency proved to be only £122,000, or £13,000 less than was anticipated, that reduction being mainly owing to savings in connection with the reserve fund. The House authorised the issue of Treasury bills for £45,000 at one year's date, and a like amount at two years' date, partially to cover the deficiency, the balance to come out of current revenue; It would be found that the current revenue of the past year bad performed its part of the bargain, and provision would be made this year out of the revenue to meet the £45,000 increasing hills due this year. With respect to loans, £6G,000 under the Wellington Debts Act had been negotiated in Sydney at a clear nett premium of two per cent. He believed that that was the highest amount ever obtained by public, negotiation for any of the colony's debentures unguaranteed by the Imperial Government. Of the Immigration and Public Works Joan £850,000 had been negotiated, and of the Defence and other purposes loan, £150,000, making together one million. That amount had been negotiated at home at a premium of 4s 2d, after deducting accrued interest, which must fre considered a very favorable negotiation. Inclusive of the £150,000 recently negotiated, there has been raised under the Defence and other purposes Loan £632,000, of which there was charged under the second schedule of the Act : to Auckland, £50.000; to Taranaki, £6000; to Wellington, £17,000: and to Otago, £90,000. By turning to the second schedule of the Act, hon. members would at once see the nature of the various payments' under it. The total under this schedule was £163,43S ; under schedule 1, there has been . expended £295,588, together with £18,327 for discount and charges, making together a total of £471,352, and leaving a balance of £158,000 available for expenditure. Of this £158,000, £150,000 was in cash in London, £300 in cash in the colony, and £7900 under advance in the colony. Of the Immigration and Public Works loan there had been altogether £1,600,000 raised. Adding to that sum £-27,294, being moiety of the Stamp duties-, the total was £1,637,294. Of that sum, £711,011 was expended up to the 3Qth of June last, leaving a. balance of £925,684, of which £850.000 was in London on the 30th of June, £40,666 was in the colony in cash, and £35,017 was under Rdvance. The items of expenditure under the Immigration and Public Works loan were — interest and r sinking fund, £.<9,00i); departmental expenses, £24,000; roads in North Island, £120,000 j railways, £-241.000} water supply, £2,000; purchase of land North Island, £49,000 • immigration, £42,000 ; telegraph, £58,000; coal mines, £500; payments to Road Boards and Provinces, £100,000; , Greymouth protective works, £3000; discount and charges, 4390p. Before concluding his remarks concerning the loans, he wished honorable members to understand that provision was raade for the payment during the year of £66,000 on sinking fund on colonial loans, and £40,000 on provincial loans, Those payments represented the sum which. the colony and the provinces provided for reducing the public. debt. On the 30th June last there was £440,000 in the Trust J'und, of which £387,000 was invested, and £50,000 in cash. On the 30th June, 1871, the e aniount in the Trust l^nd W{ l£ •£343,000, so that it had increased during the jear by .#96,UQO. The Postoffice Savipgs Bank Fhnd had increased from £294.000. ia 1871, to £365,000 in 1872; those accounts, it should be clearly understood, were kept entirely distinct frpm Ordinary Bevenue, and ordinary payments, and he had' taken, the strictest precaution to secure that the interestbearing accounts were sufficiently covered for all accrued interest. He would next speak of the revenue of tbe year 1871-2. The actual revenue of the year was £1,007,000 against #990,000, estimated, and £936,QQ0 receipts of the previous year; there was therefore an increase of £71.000 over £he . actual receipts of 1870-71/ and of £17,000 over the estimate j. The Customs Revenue showed an. increase of £25,000 on the 'estimates, and 1 of £42,000 over ■ the 'amount actually received during the previous year, , The. ; (jxpprts during the year, had: e&ceeded those of the -previous year.<byr ! £l,lßl,oQO; 'and . the;im,pp,rtß "shoved an increase -of, £427,000. . Amongst the exports, gold -increased £135,000: over! the prervious -year, and wool showed a considerable.increase both in quantity and value. The Stainp . duties had yielded £5,000 less.thariiwasjiestitDated, 'but on the Postal Revenue there was anlincrease jof £20op pye,^ the estimates and the receipts 5 the a .jreie^ra;ph 'dep'arliujent, 'sbowe^ a smaiijnorease; the tdta^reveriiie of 'the year 1^ being* : £IfiQ7,QOQ. There was td'teiadded'on' accouati of cr'eclifs'-to

votes, 2,000;-^Treasury bills, £90,00.0 ; deficiency bills, £100,001); mak'im; the tptnl -receipts of the ;' j^ear > l 9,P0O ;;' : : gti'l in addition there were [jNse£s : nrnountii.'g*tb £62.000; so that with receipts %n& assets the total for 'the year amounted to '"£ 1,261,000." The year's, increase as regarded revenue, and the events of the year as a whole, showed a revival of prosperity in the colony. Goldniinirig was improving, wool increasing in value; the land levenue liad been largely -increased; building was going on all over the coony,not only as regarded dwelling-houses, but as regarded erections for business and manufacturing purposes, and generally much more attention was being given to manufactures of various kinds. Wfih respect to agriculture, he was under the . impression that ths. State <iid not know as much of what was really beiug done, or gave it the assistance that ought to be given. During the j five years ending 1871, there had been- a continuous increase in the value as per he'd of the population, of the agricultural produce exported from the colony. The expenditure during the pasc year for colonial charges was, according to the appropriations, £.565,000; supplementary expenditure upon colonial aocount amounttd to £35,000; capitation allowance to provinces, £-<?00,000; pjtcess of payments to provinces, .£31,000; deficiency bill paid off, £60,000; liabilities from 1870-71, £62,000; payment to special fund on account of a liability of the previous year, £20,000; half amount of Stamp duties paid to Immigration and Public Works accounts. £37,000. Those sums made a total of £1,014,000. There were still due liabilities on account of interest due in Sydney on the first of July, and interest and sinking fund payable in London up to 15th July, 'amounling to £109,000, Ke<erve Fund, £14.000; Miscellaneous, £13,000; Deficiency bills, £100,000; adding those items together there was a total of £1,230,000 rxpenditure, which deducted from the total amount of tbe revenue left a balance of £10,000 with which to commence 1872-3. Stating the matter in another way the figures stood thus— assets £247,000, against liabilities to the amount of £236,000, thus leaving the same balance of rather more than £10,000 with which to commence the- year. It was to be observed that the full amount authorized to be issued as Deficiency bills, viz., £10,000, had been issued, but the greater portion of the amouut did not bear interest, being merely a nominal overdraft at the bank ; £40,000 of the amount had been taken by the Trust fund—Some objection was stated last year to allowing the Government to issue £100,000 of Deficiency Bills, but in reality it was of no assistance to tbe revenue, the greater portion of is was represented by advances outstanding from the Consolidated Ifund ; the full amount was more than represented in the assets. Honourable members would understand that after paying the ■ Deficiency bills, after providing for the unauthorized expenditure of last year, after providing for the full . expenditure of the year, after providing for the Reserve Fund, and lor all the liabilities and engagements known to the Treasury, after having, in fact, provided for interest and sinking fund due in London up to the 15th July, or fifteen days beyond the close of the financial year, there still remained a balance of £10,500 with which to commence the year 1872-3. The Treasurer next described the proposed changes in the system of keeping the public accounts according to the plan which would he submitted. The ControllerGeneral and the Auditor-fieneral would be associated together as Commissioners of Audit, and the Paymaster-General's account would be abolished* The new system had already been initiated to some extent} ' although it would impose upon the For remainder of news see fourth page.

Treasury an amount of check to which it had not hitherto' been subjected, the Department learned to accustom itself .to that check. The new system „ would answer the double purpose of securing the full authority of Parliament over the expenditure; and of enabling accounts to be made up more ' promptly than hitherto. He had had prepared some interesting statistics, comparing New ■'■ ' Zealand with other countries. Taking the year 1869, which was the latest for which returns could be found, it appeared that the revenue of the United Kingdom was sixty-five millions ... sterling 1 , of which Jess than twenty -four millions were obtained under the Customs, and twenty millions, the amount of the Excise, represented the duties on spirits. During the same year, the total amount collected in New Zealand, including the taxes collected by the provinces, was £912,000. If there was the same taxation in New Zealand as existed in Great Britain, although the English Customs tariff would not of itself yield as nrach as that of the colony, the total revenue would be much larger than it was at present. Stamp duties in the United kingdom represented six shillings per head of the population, or marly fifty per cent, more than in New Zealand. A comparison of the" quantities of high dutied goods consumed in New Zealand with the United Kingdom, showed conclusively the wealthier comparative condition of the colony. Of spirits there was consumed in the United Kingdom per head of the population per year, under one gallon, but in New Zealand the average was two and one-tenth gallons. Tobacco one and three-tenths pounds per head in the United Kingdom ; New Zealand two and six-tenths pounds per head. Wine, five-tenths of a gallon per head in Great Britain, against, six-tenths in New Zealand. Tea three and four-tenths pounds in the United Kingdom, against seven and one-tenth pounds in New Zea'and. Coffee, a little under one pound per head in the United Kingdom, as against a little over two pounds per head in New Zealand. , Sugar, forty-six pounds per head in the United Kingdom, against sixty-seven pounds in New Zealand. The English tariff would have yielded in New Zealand £643,000, as against £823,000 actually obtained here for Cus- ■ toms duties; but if o,ther taxation bore the same proportion to Customs duties hero as in the United Kingdom, the total revenue of New Zealand would have been £1,200,000 in ,1869, as against £894,000 actually raised during that year. But besides, the local taxation in the United Kingdom amounted to over fifty per cent of the general taxation, while in New Zealand the local taxation was very much less, < The secret of the apparent heavy taxation in this colony was to be found in the fact thai; the rate per h-?ad of the value of imports arid exports w:is considerably higher than it was in the United Kingdom. During 1869, the value of imports into the United Kingdom represented £9 14s 4d per head of the population, and the exports represented a value of £7 16s per head in New Zealand. During the same year, the imports 'represented £1S 4s per head, and the exports £15 !)s per heid. Honorable members would recollect that our imports represented not merely consumable or perishable goods, but articles of lasting value and means of increasing wealth. During the five years ending 1871, the total value of our exports was £24,000,000, of which £5.800,000 was the value of non-consumable articles; so that to that amount articles of permanent value and means of increasing wealth were added to the colony. By another return, it appeared that for the year ending .April 1, 1872, the value of imports into Great Britain, less the value of the exports, represented £8 3s per head of the population; whilst in New Zealand, during tiie same years and under the same conditions, the imports represented £15 6s per head. The British produce and manufactures exported from the United Kingdom represented a value equal to £6 6s per head, but the value of New Zealani produce exported from the colony represented £17 16s per head. During the same year the Post Office revenue in the United Kingdom was equal to 2s 1 Id, per head of the population as against 3s 4d per head in New Zealand; and the Telegraph revenue amounted to s£-d in the former case, and Is 9d in the latter. The population of .England and Wales in 1861 showed a proportion of males between the ages of sixteen and sixty-five equal to 28 per cent; whilst in New Zealand, in 187 1, the proportion between those two. ages was thirty-seven per cent. Turning to the neighboring colonies, it appeared that tho percentage of persons between the ages of twenty-one and forty was thirty-eight per cent, as against twentynine per cent in New South Wales, and twentynine in Victoria, The increase of population during the ten years ending 1871, was in New Zealand equal to 165 per cent as against forty-six per cent in New South Wales and "forty- six per cent in Victoria. During the same ten years the increase in the population between the ages of twenty-one and forty yas 162 per cent in New Zealand, 38 per cent in New South Wales, while^ in Victoria there was actually a decrease of ten per cent. A comparison of the exports and imports showed most favorably for New Zealand; leaving on one side imports re-exported and the value of re-exports, the,, result was that Victoria had £14 4s per head, New South Wales, £12 9s; New Zealand, £21 ]6s per head, or if the native population were included, £18 4s per head.' Taking exports, the figures -were, Victoria £14 10- per/head; New South Wales, £12 16s per head y New Zealand, £19 2s per head, or including the native population, £16 8s per head. -If the 'principal products ot the colonies were considered, the results were more strikingly favorable to New Zealand. Tb.ns, upon the average of the five years ending. 1871, New Zealand exported" gold to the amount of £10 8s per head per head per annum of the population, against £7 19s in the nase of Victoria, and : 10s in tjhatof New South Wales for the same period. New Zealand's average export of wool was equivalent to £6 9s per head^ras against £5 7s ibr Victoria, and £4 19s for New 'So.uth Wales. The exports of agricultural produce '.and timber from New Zealand for;th> Tame period .was,- equal to 13s per ■„ head'ot the population per year. From Victoria, ' those exports averaged only 3s 4d per head, and "from New South Wales 10s "6d per head. "~A further sum must be added in the case of this colony' for flax, the exports of wbich. including- the ;, native^ population, was equal to ,4s Id.' per head, , Much had been said and written respecting New Zealand's oppressive Customs tariff, but if ,the .^Victorian rates; including., ad valorem duties, had existed here, and if, ther.yalues; were entered 'the same as at present, we should have raised as Customs'; revenue during 1871, £781,000', against £731,000 S which' we actually raised; That disposed of the .allegation ,as <to, the; higher rate df. in New Zealand as compared;with)Vie".'toria.' It was to .be borne in mind that the native question had cost New Zealand five mil- : lions sterling tin , the Bhape'of expenditure more' than wxjuld , ? be required ia-ia/JMlonjri situated, like Victoria, and that fact showed how great the re,-;

sources of this colony really. were.. It was alleged that the cost of Government here was heavy— of course the rate per head of that cost was large, because the population was small. It was especially to be remembered that here the smallest aggregation of population .asked for and expected to receive nil the conveniences which in older countries were only expected by larga communities; still, the comparison of the departmental cost of Government; was favorable to Mew Zealand. Taking the financial year, 1871-2, the colonial expenditure in New Zealand; exclusive of interest and sinking fund, aroountpd to £594,000, the expenditure of the several Provincial Governments for Civil Service purposes, including education, police, gfiols. harbors, and miscellaneous, but excluding Public Works, was £251,000; together' these sums made a total of £846,000, against an expenditure in Victoria for a like purpose of £1,415,000. Turning to the proposed expenditure for 1872-3, the total amount on the Estimates was £933,830, showing an increase of £21,C00 on the appropriations for 1371-2. That increase was principally represented by increases in permanent charges such 03 £5,000 for interest on £90.000 of Treasury bills, and £ 1 1 ,000 inferest for Defence and 'other purposes of loan. Other items going towards the increase were the additional amount for members' expenses, cost of buildings, now become a colonial charge, and the expenditure on account of Manukau lighthouse. There was also an increase in the expenditure of some of the departments, such as the Telegraph and the Land Kegistry. . Honourable members in looking through this, must decide for themselves what they would consider as reductions in expenditure fairly coming under the head of retrenchment, or under that of reductions, arising from there not being necessity to continue certain services or officers. Tothe expenditure set down in the Estimates, there muse be added £208,000 for Provincial Capitation allowance, as against £200,000 last year. Moic-ty of Stamp duties . receipts to be paid to Immigration and Public Works Fund, £40,000 -."Treasury bills falling due during the year, £45,000, being the second instalment of thedeficiency stated last year, and leaving only £'15,000 to be cleared off next year. There must also be added a sum of £21,000, which it was proposed to pay to the Immigration and Public Works Fund in addition to one-half of this Stamp duties, which had been paid over to chat account, the £21,000 being calculated to represent fairly the amount of interest and sinking fund on the payments made for work3 completed and on final payments. This woul.i make a total expenditure of £1,050,000. It should be remembered that the capitation allowance to provinces represented £8,000 more than was paid last year. It was proposed also to relieve the provinces from payment of £1,900 a year for salaries of Provincial Auditors, and £23,00J a year, the cost of inland mail carriage. These sums together would represent the payment of £32,000 out of the consolidated revenue to and on account of the provinces, more than was paid last year. It was proposed to continue the extraordinary aid of £50,000, which was last year granted to the provinces, in consideration of its being alleged that there were engagements to meet which required that amount ; but £50,000, being the same as last year, would again be paid to lioad Boards. The estimated total revenue of the year was £1,076,000. The principal items were : Customs, £320,000 ; Stamps, £80,000; Postal, £50,000 ; Telegraph, £33,000; Judicial Fees and Fines, £32,000. It was estimated that the stamps would this year yield £80,000, although several remissions would be proposed, viz., the annual license fees on com- ■ panies for the promotion of industries and colonisation, such as meat preserving companies, saw-mill companies^ steamboat companies, tramway companies, immigration companies, public I hall companies, and fishery companies. It would also be proposed to remit the stamp duty on cheques of iriendly societies, and upon receipts given to them for moneys disbursed by them, and to remit the duty on all conveyances of land in trust for religious, charitable and' educational purposes. It would also be proposed that the stamp on receipts should be reduced to Id. The Postal revenue was estimated at £3000 more than last year, notwithstanding the contemplated reduction of the postage on newspapers to one half-penny— so many newspapers were Dow sent by coach, ; which would no doubt he- sent through the post under reduced rate, that it was not considered the reduction would diminish the revenue ~ of the department. The total estimated revenue then was £1,076.000, or an increase of £55,000 on the estimate, and ot £68,000 on -the actual receipts, of last year. Adding £10.500, the amount of the surplus with which the year was commenced, there was a total of £1,086,000, and deducting the total proposed expenditure £1,060,000, there would remain £25,000 surplus upon the year. A portion of that surplus would be required to meet supplementary estimates and unauthorised expenditure. 'It must be remembered that when the Estimates were commenced, the report of the Select Committee ,oa.public buildinus.had not been received, which report contained a recommendation that a considerable sum should be expended on the repair of buildings 5 provision for that expenditure was of course not included in the. Estimates. On the other hand, there would certainly be during the year savings. on votes; and he was- inclined to think that if the House should desire that a further payment should be made in aid of {he immigration and Public Works account, such payment could be made out of the surplus. In conclusion, he thought he need not apologise for the paucity. of novel, features and proposals in the budget after the changes during the last three years. It was gratifying to be able, as now, to dispense with large alterations. This, was the fourth consecutive session in which he had made the Financial. Statement. . ; ,When. he.considered the period covered by those Statements, he 'could notbut congratulate the Committee upon the present improved condition of the affairs of the colony. He hoped that he:, had avoided creating in the minds of the Committee anything like an impression, that the Government took .credit, not belongs ing'to^hem. The great revival of prosperity in.th(^cplony. was duetto, a power, higher; :thr xU thiit'orkings or people. All that the Governrrjent '■ claimed <w$ g; .that when there :was a disposition to . despondency,, . thev . .set,, .themselves to -do that ' which eeeroed best" calculated to ' restore confidence; and;theycalled upon the people L not to 1 be discouraged, ,but to arm, themselves to contend • witH'their : difficulines,'ant!t6'K"ope-f6r a.fefiehter ■' future. That that, futnreihad, shown ;!i it S elf: in - / such bright colors was'.due to "a "power 'beyond all" Governments. The Treasurer concluded by • moving a resolution, that it was expedient to 'reduce the; Stamp duty, on receipts to one penny:. * ' <v? ' J f»?° Mp«^a§:agreed jbp Ihvuthe, .commit- . tee^and'repbrtediifl iH&vHouse and adopted . ■'■ The Houseinen"adjourn§."-'" ""* 1 d? »j - The delivery of the; Statement occupied.tWo' '■' hours arid a^uarter, .*.•:,•;> r ,tu ;■ ::r,,-iA • . ■■; *: