BUDGET IN BRIEF

Nelson Evening Mail, Volume LXIII, 2 August 1929, Page 7

BUDGET IN BRIEF

THE MAIN POINTS i OFHCIAL 3UMMAUY v (By Telegraph) (From "The Mail's" Parliamentary Reporter). /' WELLINGTON, Ist August. I The following is a comprehensive sum- ' marv of the main points m the Financial 8 Statement delivered by the Prime Minister (the Right Hon. Sir .1. <i. Ward) 1 in the House of Representatives to- < night :- Consolidated Fund— Ordinary Revenue Account— £ ' Expenditure 24,176.920 l Revenue 23,599,676 I Deficit, 1923-29 £577,252 i (Deficit due. to overestimate, of taxation receipts and unexpected expendi- < lure on account of interest.) I £ Balance brought for- ' ward. Ist April, 1928 3,302,232 ' Less deficit for 1928-29 577,252 Final instalment of purchase price, of C Jong-term mortgage shares in Rank of New Zealand 58,594 Amortization of debt ... 50 Subsidies to local authorities in respect of unemployment ... 68,567 Advances to Native Trustee (net) 33,000 Advances to Rural Intermediate Credit Board 110,100 Sundry charges and expenses of raising . loans 1,128 Balance 31st March, 1929... £2,453,541 This balance was made up as follows — £ Casli 2,315,381 Imprest outstanding 135,880 Investments 2,280 £2,453,541 SUMMARY OF DEBT OPERATIONS £ Debt as at Ist April, 1928 251,396,252 AddNew loans raised for 1928-29 £ Ordinary 6,839,547 State Advances 3,067,91!) Part of £7,000,000 London loan carried forward for 1929-30 5,379,105 Increases arising out of conversions and redemptions of 1929 stock 739,347 Raised for redemption but not applied as at 31st March, 1929 3,946 267,426,107 Less redemptions 3,234,124 Debt as at 31st March, 1929 £264,191,983 CLASSIFICATION OF DEBT £ Ordinary 151,488,052 War 70,881,269 Discharged Soldiers 8,287,656 State Advances 33,535,006 £264,191,983 Apart from war debt, which is, of course, wholly unproductive, the greater part of the remainder, raised for public works, land settlement, and State advances, is self-supporting, the interest payments being provided by the interest earning assets. Government's borrowing policy is to see that as far as possible further debt incurred only for purpose of providing for economic development of resources of Dominion, but no hesitation in providing capital required for State advances, land settlement, and completion of trunk railway lines. COMPARISONS WITH PREVIOUS YEAR £ Total revenue, comparative increase 496,497 Customs, increase 11,663 Income tax, increase 37,148 Land tax, decrease 14,155 Stamp and death duties, increase 71,353 .Total expenditure, comparative net increase 1;529,082 Interest, increase 278,147 Pensions, increase 91,307 Electoral Department, increase 80,046 Agriculture, increase 86,316 Education, increase 92,681 Samoan Military Police (new item) ..'. 27,374 CAPITAL EXPENDITURE ON PUBLIC WORKS 1 £ Railway construction, additions and improvements 3,179,391 Main highways and roads ... 1,822,922 Hydro-electric supply 965,560 Telegraphs and telephones ... 624,414 Public buildings (including schools) 602,392 Irrigation, land, and river improvements 282,806 Other public works 182,095 £7,659,580 LONDON LOAN, 1929 £7,000,000 raised in January for—' j Public Works Fund (railway j construction, roads, telegraph j and telephone. extension, etc.) 4,500,000 Hydro-electric power works... 1,000,000 Railways improvement 1,500,000 £7,000,000 Loan very favourably commented upon in London financial papers. Loan obtained on better terms than other borrowing States. CONVERSION OPERATIONS In addition to £7,000,000 loan, £ll,729,496 of 4 per cent, stock maturing in November, 1929, was converted into 4J, per cent, stock maturing in 1948-58, oh the basis of of the new stock for every £IOO of the old. £17,833,996 of 1929 4 per cent, stock dealt with to 31st March last, leaving £11,274,356 still outstanding. Debt, deductions during year totalled £3,234,124. STATE ADVANCES OFFICE Since the 10th December, 1928, when Government assumed office, toi the 29th July Inst, loans authorised as follows: £ j To 2006 settlers 2,420,790 To 2749 workers 2,384,995 4755 ... £4.805,785 Loans paid over dining same period J amounted to £3,055,742. .1 The position does not permit of any . I reduction in interest rates at, present, i but it is hoped that lending rates can II " ■

bo started on downward path before j long. RAILWAYS AND ROAD TRANSPORT Total expenditure on highways and roads for year was approximately £3,350,000. If present drift not checked taxpayer will shortly have to God £2,000,006 a year for Railway losses. Summary of Government's policy : (a) To complete trunk linea as backbone of .system ; i (b) Not' to build further short branch I lines where transport needs can be adequately catered for by motor services on a good motor road ; (c) To investigate the position of the present branch lines with a view to doing away with those that, are found to be obsolescent ; (d) To write down the railway capital by the amount contributed thereto from revenue, and cancel the present subsidy from the Consolidated Fund; (e) To co-ordinate the railway and motor road construction policies; (f) To take steps to bring about co-or-dination between road and rail transport services. Taupe railway and Palmerston North deviation stopped as circumstances do not justify the large capital outlay involved. LAND SETTLEMENT Vigorous policy essential far return to general prosperity. Loan authority of £5,000,000 to be provided. Certain waste lands to be brought into cultivation. Large estates to be purchased and cut up for closer settlement. • Government will pay a fair price, but will use compulsory provisions of Act if necessary. Land development branch of State. Advances Office to be established to assist in development of waste, lands. AGRICULTURE Resources of Agriculture Department available to assist men on land, particularly new settlers. Special research activities being undertaken in connection with various stock diseases, mineral content of pastures, etc. EDUCATION System to be amended to give bias towards farming. Country schools being consolidated. Correspondence school being extended to embrace secondary education. Child welfare work being widened. IMMIGRATION Government proposes to continue the restriction on assisted immigrants to separated families, single women, domestic servants, and juveniles. UNEMPLOYMENT Standard rates of pay for relief work- . ers increased from 9s to 12s per day to 14s. Additional labour employed by Public Works, Post and Telegraph, and Forestry Departments. Total cost to State of unemployment relief during year amounted to £879,618. EARTHQUAKE DISASTER Government provided transport and other facilities for refugees. Special committee administering the Central Relief Fund. Restoration of roads, bridges, railways, public buildings, etc., is being carried out. Legislation to be introduced validating grants to fund by local authorities, including Harbour Boards and private savings banks, etc. STATE SUPERANNUATION FUNDS Total cash shortage, not covered by subsidies in pasl, amounts to over £2,000,000. Whole position to be investigated. BANKING AND CURRENCY

Amendments to banking legislation, necessary. . . [ Existing position to be maintained m | the meantime. POST AND TELEGRAPH DEPARTMENT Net profit for year approximately £39,000. Excess of withdrawals over savings bank deposits for year £859,559: _ Sales of Post Office Investment Certificates for year approximately £550,000. PUBLIC TRUST OFFICE Estates under administration increased by over £4,000,000. ' Net profit for year £29,467STATE INSURANCE OFFICES Government Life Insurance Department issued reversionary bonuses totalling £324,871. Life insurances in force at end of year £22,084,471. State Fire Insurance Office earned surplus of £75,600 after allowing for rebate of 12i per cent, to policyholders. Accident Branch shows surplus of £17,592. 9 TAXATION Analysis of expenditure shows that charges on taxation largely of a rigid nature, and that Budget cannot bo balanced wholly by administrative economy. Government has no practicable option but to increase taxation until causes of economic difficulties can be dealt with. Burden to be placed in such a manner as to assist the Government's land settlement policy, and with a view to disturbing business and trade as little as possible. Proposals Land lax: Super tax to be imposed on all farming lands of an unimproved j value in excess of £12,500. Also mortgage exemption to be reduced. Income tax: Income from farms of an j unimproved value of £12,500 or over to be subject to income tax, but amount paid in land fa;: will be allowed as deduction from income tax otherwise payable. In effect this means payment of I land tax or income tax, whichever is j the greater. j Income lax exemption for children to: bo adjusted. Present age limit of 18, not to apply where child, on account of! mental or physical permanent incapacity, I unable to earn his or her own Jiving. Also present exemption apportionable over whole income tax year. Primage duty on imports increased from 1 per cent, to 2 per cent. ESTIMATES FOR 1929-30 Estimates carefully scrutinised and reduced to a minimum consistent with maintenance orf existing services. Departmental revenue overhauled. Consolidated Fund— Ordinary Revenue Account— £ Estimated revenue 25,172,000 Estimated expenditure ... 24,910,000 Available for supplementary estimates and contingencies £262,000 £ Estimated Customs revenue ... 8,400,000