PARLIAMENT.

New Zealand Times, Volume XXXII, Issue 5199, 20 November 1877, Page 2

PARLIAMENT.

HOUSE OF REPRESENTATIVES. Monday, November 19. NEW MINISTER. Sir GEORGE GREY stated that Mr. Hoaui Nahe had been sworn in as a member of the Ministry. Ho defired that another interpreter should be appointed to sit with the new Minister on the Treasury beaches. Major ATKINSON said that the appointment of an interpreter rested with the Speaker. The SPEAKER stated that such was the case, as an interpreter was regarded as an officer of the House. With the consent of the House he would accede to the request of the Ministry. The motion was then put and agreed to. LAND BILL. The House went into committee on the Laud Bill. On the clause providing that all rural lauds in Canterbury shall be open for sale at a uniform price of 40s. per acre, Mr. STOUT moved an amendment that this should not apply to pastoral lands set apart for sale on deferred payments. A division was taken, which resulted in the amendment being lost by 32 to 31. The Hon. Mr. REYNOLDS drew attention to members of the Government voting on both sides. He desired to know whether the hon. member in charge of the Bill (Mr. Stout) was acting on behalf of the Government in proposing the amendment. Mr. STOUT replied that he had .taken chai-ge of the Bill owing to the illness of Mr. Sheehan. He did not consult the Government in proposing the amendment. The Hon. Mr. SHEEHAN said the Government did not look upon the amendment as one of great importance. He alluded to Canterbury members opposing a uniform land law over the colony. Mr. WAKEFIELD pointed out that there had been a series of resolutions tabled by a Canterbury member for making uniformity in the land laws. The Hon. Mr. STAFFORD stated there was difference of opinion amongst Canterbury members with regard to the laud laws. There was no combination between them. He desired to see the deferred payment system extended to all forest lands in the colony. That was another matter, however, from a uniform price. What he understood by uniformity was that no provincial distinctions should be made in dealhig with lands. Mr. W. WOOD moved the postponement of the further consideration of the Bill, which was supported by the Hon. Mr. Reynolds on the ground that it was desirable for the Ministry to state whether the Laud Bill was a Government measure or not. Mr. MURRAY, in reference to what had fallen from the hon. member for Timaru, said it would be better if the hon. member supported a uniform laud law by his vote instead of by his speeches. The Hon. Mr. STAFFORD said there never had been a question before the House to test his vote on a uniform land law. He differed from the hon. member for Port Chalmers, and was of opinion that the question should not be made a party one. He would remind the hon. member for Bruce that the free selection system had not been confined to Canterbury, but had been in force in Wellington and Hawke’s Bay. The motion for postponement was withdrawn. The Bill was reported with amendments, and was ordered to be recommitted. FINANCIAL STATEMENT. The Hon. Mr. LARNACH, in making his Financial Statement, spoke as follows: — Mr. Speaker,—Sir, the Hon. the Premier, a few evenings ago, in his statement of the proposed future policy of the Government, informed the House that it was our desire to consolidate the administrative system of the colony, and to introduce a clear, comprehensive, economical, and stable plan of finance. This, sir, is a work on the advisability of which all hon. members must agree ; and all will no doubt agree that ft work of such a nature cannot properly be accomplished without fall consideration. Under these circumstances, there are two courses open to us: Firstly,—To ask the House to vote supplies for a period of three or four months ; to adjourn ; to meet again at any early period of next year,—when we should be enabled to place our plans before you in a matured form, — and then to take your verdict upon them ; or, Secondly,—To take up the Estimates of the late Government, make such modifications in their proposals as we might deem necessary, and occupy ourselves during the recess in fully . reosganising and consolidating the present financial and departmental systems of the colony. Sir, the latter is the course which we have determined to adopt. At the same time that we resolve to do this, the House has a right to expect that we should, at least, indicate our views upon the present financial Condition of the colony, the character of the changes we propose to make, and the necessity, in our opinion, that exists for making those changes. THE FINANCIAL STATEMENT OF THE LATE COLONIAL TREASURER. The late Colonial Treasurer has laid before this House an elaborate Financial Statement, furnished with all the tables and returns that usually accompany such an important document. I therefore, sir, feel myself somewhat relieved of the duty of entering to any great extent into minute details. I will at once admit, sir, that it would be impossible for me to attempt to place more clearly before this House than the late Hon. Colonial Treasurerhas done, all details in reference to the different loans which this colony has from time to time contracted ; nor have I the time or the means at this very late period of the session to revise them. The Government has no other course to adopt but to accept them. So also with regard to the expenditure : anxious as we are to effect changes of system by means of rearrangement, economy, and consolidation, yet—as more than one-third of the present financial year has already elapsed, and as much patient inquiry is requisite to prevent changes and reorganisation of this kind becoming mischievous and even dangerous to the public service —I feel that I have no other course open to me at the present time than to accept the estimates of expenditure nearly as they appear in the tables recently submitted by the late Treasurer. If, however, by the circumstances of the case I am necessarily precluded from dealing with details, I ask the attention of the House for a short time whilst I endeavor, from my point of view, to indicate briefly the tendency of our present system of finance, the evils to which it is rapidly leading, and the only available remedy that I can see possible to enable this colony, without imposing enormous burdens upon the people, to maintain its credit, and to bring to a successful issue the great policy of Immigration and Public Works to which the colony is pledged by the contracts it has entered into in relation to the works that are in progress—besides the promises of works to be initiated. l EARLIER MEETINGS OP PARLIAMENT NECESSARY. One striking defect in the present system of conducting the public expenditure is, that the General Assembly frequently meets some time after the commencement of a new financial year. After the meeting of Parliament, a period of several months sometimes elapses before the Act of Appropriation passes the Assembly. Under such a system the expenditure is conducted without any appropriation having been made; and is incurred solely upon the authority of Imprest Supply Acts, which direct the moneys to be charged in a manner thereafter to be expressed in the appropriation of the year. From this it results that the Government is able to incur any expenditure it pleases, by simply placing on an estimate any amount for any service which it thinks proper

to undertake; and the duty of the Assembly resolves itself rather into the ratification of expenditure incurred during several months of the year, than a careful watching of amounts which it is asked to vote. To cure this system, one of the duties of the present Government will be, either to alter the time of the commencement of the financial year, or to take care that the Assembly meets at an earlier period, say not later than the first week in June. TREASURY BILLS AND OTHER FLOATING DIETS' Sir, in the financial year 1874-75, there were outstanding Treasury bills—that is, loans raised to meet deficienoes in the revenues of previous years, and chargeable on the Consolidated Fund—to the extent of £IOO,OOO. That amount was due and payable in that year; but the Consolidated Fund was unable to bear so large a charge. It was, however, hoped that this sum might be gradually reduced by the payment out of revenue of £IOO,OOO per annum until the whole amount was extinguished. If that sanguine expectation had been realised, there would be outstanding now only £200,000 of Treasury bills, of which sum a moiety would vanish concurrently with the present financial year ; but the present tendency is in an opposite direction, for the amount of Treasury Bills in existence is now above £BOO,OO0 —more than double the original sum referred to of 1874-75, and, instead of there having occurred any decrease in this particular form of the colony’s indebtedness, the original sum may now safely be multiplied by two. Not only have we been unable out of the superfluities of the present to pay off the deficienoes of the past, but the necessities of the present have shown themselves to be far greater than before, and the charge upon the Consolidated Fund has now become so large that to meet these Treasury bills out of the fund upon which they are by law a proper charge appears to me to be hopeless. In the year 1575-6, a further issue of Treasury bills was requisite ia aid of revenue to the amount of £172,010. In the last year, a further issue of £260,000 became necessary, and the late Colonial Treasurer proposid to repeat a similar temporary borrowing this year “ as a receipt in aid,” but for this occasion the fund upon which the advance is to be secured is not the Consolidated Fund or the ordinary revenue of the colony, but the laud fund of the provincial district of Otago. A similar loan would have been raised on the security of Canterbury, had it not been found possible to take £58,000 in cash from its territorial revenue. Such a condition of affaire, sir, as this is not considered by us in any way satisfactory. There appears to be a sad want of that equilibrium—that evenness of balance- -in our financial system which, before all things, must exist if we intend to maintain our position as a solvent State, our reputation as prudent, careful colonists, and, above all, our credit in the English money market. OUR POSITION WITH REGARD TO PROVINCIAL LIABILITIES. Nor, sir, is this all : if it were, perhaps it would not be so difficult to secure an even balance between our means and our requirements as I fear may possibly be the case—or to use a homely phrase, to learn bow to make both ends meet. Last session, this House finally determined to abolish the provincial system, and in so doing had to make all provincial liabilities colonial liabilties, for which this House has to make provision. The burden which has been undertaken by that policy is, in my opinion, greater than was ever anticipated. The difficulty of ascertaining the amount of provincial liabilities seems to be very great, and that of finding the means wherewith to liquidate them when ascertained seems to me to be still greater. tip to the 30th June last, the sum of £237,500 had been advanced from loan to meet payment of provincial liabilities, and there existed, on that date, overdrafts at the bank on provincial account, the sum of £105,883, or an aggregate sum of £343,388, which may be reduced by £45,888, being the amount of balances in hand to meet liabilities on provincial account, thus leaving still unsupported the sum of £297,500. Sir, so much I have said for the period up to the 30th Juue last, and from that time I may be allowed to travel upon a different and perhaps more uneven track. There are known to be, at the date on which I am now speaking, still further liabilities on provincial account outstanding, amounting to £279,766, reducible by about £30,000 due from Laud Fund and other sources, leaving a total to be provided for ia some manner of £249,766. And .the House, I think, will agree with me that still further liabilities in tliis direction will yet surely present themselves. In the statement of these liabilities, which I found in preparation .for the late Treasurer, they appear to reach a total of £600,000. There is a sum of £104,000 to be paid in January next to the Wellington -Trust and Loan Company, for money lent to carry on the important reclamation-improvement undertaking on the foreshore of the harbor of this city. It is true that the work contracted for promises undeniably to be a reproductive one. The land is security for the outlay, and very good security too ; but still, sir, the works are not yet finished, and are not likely to be completed before or on the date upon which the payment becomes due, and it can hardly be expected that sales to any extent of sections can take place for some time to come. The money, no doubt, can be re-borrowed on the same security—perhaps even on better terms than originally ; and, if there were no greater difficulties to face than this, my task would be much easier than I apprehend it will be. From the Statement of the late Colonial Treasurer, the House will have seen that there remain no available balances from loans upon which lon pretend permanently to charge any of these payments ; but, ou the other hand, it is absolutely necessary to go into the money market under disadvantageous circumstances to borrow still further ; and, to attempt to do so upon anything like reasonable terms, we must be prepared to show a state of finance characterized by soundness and stability. UNSTABLE CHARACTER OP RECENT COLONIAL FINANCE. I ask, sir, has there been exhibited any stability in the finance of this colony during the recent past ? By the Abolition Act, a financial arrangement, supposed to be of a very definite and permanent character, was arrived at in reference to the Land Fund. This grand arrangement, promising durability and stability, never even saw the daylight of its existence, but fell still-born ; and great difficulties would have arisen from this cause had not certain provisions in the Financial Arrangements Act of last session come to the rescue of colonial finance. These are the very provisions the late Government proposed again to alter this year; thus removing every trace of fixity and finality from the finance of the colony. Now, sir, to meet all these exigencies, to make the large payments on account of interest that this colony has periodically to make, to pay salaries, and to provide for the innumerable other matters that have daily to be met, what, I ask, is the present state of the Treasury chest ? I have been accustomed, sir, to deal, and I prefer to deal, with cash. It is very much more satisfactory and more convincing to deal with cash than with mere bookkeepiug accounts ; with the latter, it is not difficult to manipulate balances; with the former, it is not easy to show two sovereigns where, in reality, only one exists. STATE OF THE PUBLIC ACCOUNT ON OUR ENTRY INTO OFFICE. On the 13th day of October last, the day on which this Government assumed office, there stood to the credit of the colony altogether, as shown by its banldng accounts, the sum of £762,312 11s. 3d. Surely, sir, with such an overflowing Treasury as. this, the House ivill wonder what' need there is for any financial difficulty. I shall at once proceed, sir, to show the House of what this balance chiefly consists. To the credit of the Consolidated Fund there was £105,563 7s. Bd,; to the credit of the Land Fund, £544,543 lls. 6d. I shall now lay before the House a full statement of cash balances in bauds of bankers on the day to which I have referred, also a similar statement, for comparison, of the 16th instant, with the amounts of the balances of each one of the numerous departmental accounts.

THE LAND FUND ITS PRESENT POSITION. The whole of the Laud I mid is appropriated by special . enactment. The Government has no power, however large in anv one year that fund may become, to touch one shilling of it for any purpose whatever beyond that amount which the law places at its disposal. The whole of the residue is to be distributed in certain defined proportions to the counties of the respective provincial districts in which it is raised. An accumulated aud excessive Laud Fund, under the present laws of this colony, can never be used by the Government, even temporarily, in aid of a deficient Colonial Treasury. The Land Fund this year, I feel pleasure in saying, will be largely in excess of the sum estimated by the late G-overument, Their estimate was £743,000. To September 30th, there had actually been paid into the Treasury the sura of £542,231 19s. 4d. I do not mean to say that I anticip ite four times that sum as the iaud revenue for the year, but I think it is quite reasonable to suppose that the respectable total of one million will be realised. After paying all subsidies to municipalities, road boards, &c., as provided by law, the residue, however large, lias to be paid to the county councils. I beg to call the attention of the House to the fact that, while the Land Fund receipts have on the whole been largely in excess of the estimate, that excess has entirely arisen from the large sums realised in the provincial distinct of Canterbury, while in the other provincial districts the amount realised has been much under the estimate. FROPOSALS REGARDING FUTURE DISPOSITION OP THE LAND FUND. Sir, although the laud revenue has nominally been regarded and treated as provincial revenue, yet, iu point of fact aud actually, it has, by various enactments during the past few years, been gradually encroached upon and absorbed to such an extent that, in reality, the idea that a large proportion is available for localisation is a delusion, only calculated to mislead the minds of the people as to the real position of affairs—such proportion not being for the most part derived from actual land sales, but from Treasury bills. Under such circumstances, it is desirable that the subject should be placed upon a more certain and satisfactory footing : with that view, and for the purpose of simplifying the public accounts, we propose to do openly aud straightforwardly that which our predecessors in office have hitherto been doing indirectly and disingenuously. Sir, we mean to make the Land Fund colonial revenue, subject to all the obligations which the colony has undertaken in respect thereof, such as cost of administration, cost of survey, immigration, interest on provincial loans, and so forth. It is our intention, however, that 20 per cent, of the Land' Revenue shall be localised by law for the purpose of being expended by the local authorities on roads, bridges, aud public works within their respective districts ; and further, we shall ask Parliament to agree to one uniform land law, whereby the public estate, subject to classification, shall be sold at uniform prices throughout the colony, whether on a system embracing free selection, deferred payments, or otherwise. Sir, I wish it also to be understood that, if administrative reforms and reduction of expenditure can be effected to an extent which may allow of any increase of the proportion of 20 per cent, referred to, such proportion shall have the benefit of it accordingly. Ou this subject I desire to add that, while the circumstances into which the colony has been permitted to drift render it imperative that the Laud Revenue should be dealt with as we have just proposed, my colleagues and myself fully recognise that one of the most legitimate objects to which that revenue ought to be applied is to render available for settlement the particular locality from whence it has been derived ; in fact, this ought to be regarded as one of the majn conditions upon which the purchase money is paid. We are therefore of opinion that, in apportioning the public revenue throughout the colony, such condition should be kept faithfully in view. Before proceeding further, I may be permitted to say that the Government looks forward to being enabled to submit to this House next session well-considered proposals, based upon sound data, whereby important districts may be opened up aud connected with the main railway lines by means of branch lines, to be constructed out of the proceedsof theland, which will be rendered valuable and accessible by such brauch Hues. There are at present, as bon. members are aware, extensive areas of public territory throughout the colony which are unavailable for settlement, and which must continue to be so until rendered accessible by railways or roads. This is a matter iu respect to which the Government looks with favor upon the action that has been taken during the present session by private members. ,We are of opinion, however, that it ia a subject which, in the future, ought to be dealt with by the Government, and we shall be prepared to devote to it that consideration which its importance desen’es. MAINTENANCE AND REPAIR OF MAIN LINES OF BOADS AND BRIDGES. The Government has daily, since in office, bad brought under its notice the necessity of taking some steps to protect and keep in repair the main roads and bridges of the colony; and although, by the legislation of last year, the counties were created to do this work, I regret to say they have been unable in too many cases to grapple with the difficulties of the task thereby imposed upon them; and if the Government, after due consideration, find it to be to the interest of the colony that it should undertake the work, it will not fail to do so, even if a portion of the subsidies payable to any local bodies benefited by any particular road or public work may hare to be diverted for that purpose. REDUCTION 'IN DEPARTMENTAL EXPENDITURE. Some interest has been excited by that portion of the Hon. the Premier’s Statement which had relation to a reduction ia the salaries of Ministers. There is a very laudable cariosity abroad as to the extent and nature of these proposed reductions, which I desire at once to gratify. In the year 1873 the salaries of Ministers were raised from the sum of £IOOO per annum each to £1750 for the Premier, and £1250 each for other Ministers. We shall propose a revision of the civil list, aud we shall ask the House to fix the Premier’s salary at £IOOO, and the salary of each of the Ministers at the same amouut. We propose to sell—not privately—one of the steam-vessels now the property of the Government. The Public Accounts Committee report on the advisability of selling the Hinemoa ; but, before determining which boat to dispose of, we shall be guided by careful aud sound advice from officers practically qualified to give it. In dealing with the civil list it will be our object to maintain the efficiency of the public service, and not to cut down salaries of necessary officers, but to consolidate offices as much as possible. In this direction we have reason for believing that much can be done towards effecting a very large saving in the annual expenditure of the colony. RAILWAY MANAGEMENT. We look forward to an early report from the committee appointed at the beginning of this session to inquire into railway management, from which we expect to obtain much valuable information for our future guidance in the conduct of the most important of the public works of the colony. In whatever direction the report may point, we shall be prepared to give it most serious consideration, and to inform the House of the result of our deliberations. A commission appointed during the recess to inquire into the management of the Auckland lines reported very strongly in favor of leasing them. If the recommendations of the commission referred to are supported by the report of the committee, we shall not hesitate, either in regard to the Auckland lines or any other of our railways, to ask this House tofavorably consider them, with a view of effecting a saving in the colonial expenditure, as we believe there is room for considerable reduction in the cost to the colony of its present system of railway management. PROVISION FOR RECONSTRUCTION OF LINES. While dealing with the question of our railways, I am compelled to call the attention of the House to a matter of the most serious importance. We have been accustomed to bear for the last two or three years of revenue de rived from railways, but that revenue was

simply the balance of profit after deducting the cost of ordinary maintenance and working expenses from the gross receipts. 1 he neces sity of providing for the renewal of the various lines—a point in respect of which the fullest and most careful provision has always been made in the great railway system of the mother country—has in our case been entirely overlooked. It is impossible to over-estimate the serious significance which tins absolute necessity will have on our future finance. IVith our system of light narrow-guage railways, the question of renewal is much more important than it is at Home. At this late period of the session we cannot propose to deal with the matter, but it will form a leading feature in our Public Works policy of next year. PROPOSED KEW LOAN - . Sir I desire, before I conclude, to say a few words upon the views of the Government as to the extent of the further borrowing powers to which we shall have to ask the committee to assent. It has not been easy, in the midst of the hurry of the session, with all the political and departmental business appertaining to offices on my hands, to have met you with a statement of onr views on this subject to-night ; nor has it been less difficult for my bon. colleagues and myself to arrive at a determination as to the sum necessary to be borrowed to meet our present requirements. Sir it is our intention to ask the House to consent to a loan of £-1.000,000, feeling assured that the whole of this amount will be wanted. We propose, sir, to. redeem the guaranteed debentures, to provide for our public works, for provincial liabilities, for other necessities of the year, and for all floating debts now due by the colony ; but there is also the million due to the two banks, which we have not provided for here. At present we have loans raised in London, loans raised in Sydney, loans raised in this colony, and we have the Treasury bills before referred to. The Government deem it desirable that this syst m should cease, and that there should be but one sort of funded colonial indebtedness for this colony, showing at a glance the entire debt ; one current or working account, showing our annual revenue and expenditure under their several principal heads ; and that the numerous small and mystify in" accounts and balances at present exist* in" under the heading of the public account should be done away with; and that we should as far as possible have but one creditor—l mean the London money market. The practice of concealing—perhaps unintentionally—the amount of the colonial indebtedness, by the issue of Treasury bills, and the raising of temporary loans in the colonies, has an effect even worse than imposing directly on the Home creditor. It encourages the people of this colony to fancy their liabilities to be smaller than they really are, and to agitate for a greater expenditure than the colony can afford. Fuller details of these questions will be given when the Loan Sill is brought down, TAXATION. We shall, however, during the recess seriously address ourselves to the consideration of large reductions in the public expenditure, which we have reasons for believing can be carried out; and we will also earnestly consider the question already discussed in this House of altering the present system of taxation in this colony, with the view of more equally and fairly distributing Its burdens upon the whole community. Should our land receipts keep up, I apprehend that it will not be necessary to attempt to raise a larger revenue from the people than is now drawn from them; but should that source of revenue fall off, we must be prepared to submit to heavier burdens to meet our obligations to our creditor, and conduct the business of the country. After the experience to be gained during the recess, we shall be in a better position to offer an opinion on the subject when Parliament meets next year. ACTUAL PRESENT POSITION OF RECEIPTS AND EXPENDITURE. With this Statement I propose to lay before the House a table, marked No. I, showing the estimated revenue from all sources, including land, and the expenditure for the present year, based upon the state of things which the Government found in existence upon taking office. This document is worthy the attention of the House : The estimated revenue appears .. £3,669,026 0 0 The expenditure .. .. .. 4,410,238 0 0 The deficiency therefore is .. .. 711,212 0 0 If the revenue, as stated above, falls short of the estimated amount, as is not improbable, that deficiency will be proportionally increased. I also lay before the House a table marked No. 2, showing, without the Land Fund, the estimated revenue and expenditure for the same period. This is a very important table, and from it will be gathered at a glance our true financial position, as we are at present conducting the business of the country. It will be observed that the present daily expenditure of the colony is in excess of its estimated revenue —minus the land revenue—£l926. I feel it my duty to call the attention of hon. gentlemen to this state of tilings, and to ask for their earnest consideration of the subject. CONCLUSION. Sir, in making this Statement, I do so with feelings of great diffidence. My position here is not of my own seeking, nor is the business I am now engaged in that towards which my tastes and inclinations would willingly have led me. So far as my humble abilities have served to guide me, X have cheerfully given my most earnest attention, with as much time as I had at my disposal, to the subject of our finance. ,My future aim will be to endeavor to arrange a system that may prove stable, that will secure a state of equilibrium between our revenue and our expenditure, that will be of a character sufficiently fair not to excite the cupidity of one portion of the country or the envy of another; and. as this House in its wisdom has determined, and the colony at large has agreed in that determination, to try to bring the whole of this country—differing as it does in common interests, in the manner of its colonisation, and in its topographical features—under one united Government,’ so will it be the object of ray colleagues and myself to assist in the realisation of this effort by simplifying and regulating our too abundant partnership accounts, and introducing a system of united finance, without which a wholesome united Government is impossible. TABLES REFERRED TO IN FOREGOING STATEMENT. Cash balances at close of business on Saturday, 13th October, 1877. £ s. (1. Cash in the Public Account— In London C 0,200 8 0 In the Colony 822,(511 19 3 Total £702,312 11 3 Consolidated Fund 105,503 7 3 Special Funds— Consolidated Loan .. .. •• 33,530 17 8 Defence and Other Purposes Loan 34,312 19 1 Public Works Account .. .. 148,701 2 9 Waitara Bridge Endowment Ac- '' count 11 10 0 Wellington Debts Act Redemption Account .. 3.257 9 4 North Otago District Public Works Loan .. 1,108 8 10 Westland Loan Act Redemption Account 05 2 10 State Forests Account .. .. 2,220 13 3 Provincial Liabilities Account, — Auckland .. £Ol 5 6 Taranaki .. D 18 7 Wellington .. 4,718 14 6 Hawke's Bay .. 1,45119 7 Nelson .. .. 4,204 19 10 Marlborough .. 3 10 7 Canterbury ... 12,233 11 8 • Westland .. 340 15 3 Otago .. .. 1110 11 New Zealand Land Act, 1876 .. 8.901 11 11 Counties Separate Account .. .. 10,103 7 10 Land Fund,— Auckland .. £1,574 12 4 Taranaki .. 334 1 1 Wellington .. 1,708 8 9 Hawke’s Bay .. 5,729 0 11 Nelson.. .. 219 13 G Marlborough .. 244 17 8 * Canterbury .. 493,025 8 8 Westland .. 610 0 0 Otago .. .. 42,157 4 7 Surveyor-General’s Office .. 65 4 11 Native Land Courts Account ~ Gold Fields Revenue Account 1,287 17 1 Gold Duty Account .. 5G9 13 2 Trust Fund .. .. ~ .. 47,302 3 C Land Fund No. 1 Account .. .. 195 12 10 Undistributed 17 3 6 Suspense Account 95,452 8 1 Total £702,312 11 3

At Close of Business on Friday , 10th November-, 187 Cash in the Public Account, — £ s - d* In London .. 207,770 8 7 In the Colony .. .. . . .. '437,306 7 8 Total £230,120 4 1 Consolidated Fund .. -. • • 25,064 14 1 Special Funds, — Consolidated Loan 33,530 S Defence and Other Purposes Loan 33,787 1 7 Public Works Account .. .• 230,081 19 8 Waitara Bridge Endowment Act... 11 10 o Wellington Debts Act Redemption Account 3,257 9 4 North Otago District Public Works Loan 7,659 3 11 Westland Loan Act Redemption Account . 1 State Forests Account New Plymouth Harbor Board Endowmont Act, 1874 .. .. .* I,OSB 9 0 Provincial Liabilities Account — Auckland .. £62 15 G Taranaki .. 9 18 3 Wellington .. 2,877 2 0 Hawke’s Bay .. 1,421 18 S ; Nelson.. .. 3,585 S 0 ’ Marlborough .. 0 10 7 Canterbury 3,821 15 7 Westland •• 178 7 9 Ota"0 •• 4.089 15 0 New Zealand Loan Act, 1876 .. .. 8,001 11 11 Counties Separate Account .. .. 61,847 lb 9 Land Fund, — Auckland .. £423 11 3 Taranaki .. 2,322 9 3 Wellington .. 955 2 3 Hawke's Bay .. 10,353 10 8 Nelson .. .. 230 IS 9 Marlborough .. 123 13 0 Canterbury .. 201.127 9 0 Westland .. 288 5 4 Otavo .. • • 71,025 1C 10 Surveyor-General's Office .. 137 H 5 • Native Land Courts Account Goldfields Revenue Account .. 1,425 8 7 Gold Duty Account .. . • 16 2 Land Fund No. 1 Account .. -. 208 3 - Trust Fund 72,562 II 0 Bills Receivable .. .. .. •• 170,000 0 0 Undistributed .. .. .. •• 27.880 8 7 Total £230,120 4 1 Table No. 1. ESTIMATE OF BEVENUK AND FOR CURRENT FINANCIAL YEAR. Revenue, £ Surplus Consolidated Revenue, June 30,1877 148,220 Consolidated Revenue 2,203,160 Gold Revenue 72,000 Land sales, balance June 30,1877 £115,646 ~ current.. .. .. 1,110,000 Deficiency 711,212 £4.410.238 Expenditure, £ Consolidated Fund.. 2,304,546 Gold Revenue 72,000 Land Fund, fixed charges 643.208 „ amount distributable to counties and road boards 533,063 Supplementary Estimates — £ Consolidated Fund .. .. 112,910 Land Fund 38,775 Provincial Liabilities Estimate — £ Overdrafts to 30th June, 1877 .. 100,209 Provincial liabilities .. .. 654,755 661,024 Less balance of loan, 30th June, 1877 45,888 £4,410,238 Table No. 2. STATEMENT SHOWING EXCESS OF EXPENDITURE OVER REVENUE. Estimated daily expenditure in excess of estimated revenue .. .. 1,926 Thus— Expenditure Consolidated Fund .. .. £2.394,546 Supplementary Estimates .. .. 112,910 Provincial liabilities.. 661,024 £3,168,480 Daily rate 8,658 Revenue Consolidated Fund .. .. £2,263.160 148,220 45,888 £2,457,268 Daily rate 6,732 Memorandum. £1,926 , Otago North District Public Works Advances Account, now due to Public Works Advance Account 54,791 Some of the Chief Items for which Loan -is required. Public Works—amount to be raised on account of current year 1,461,447 Treasury bills to be converted .. .. 832,000 Debt cue to Public Works Account by Consolidated Fund .. .. .. 300,000 Imperial guaranteed debentures to be redeemed 800,000 Provincial liabilities .. Sir GEORGB GREY moved the adjournment of the debate. Major ATKINSON asked if the Government intended to make the consideration of the Financial Statement the first order of the day for the following day? The Hon. Mr. SHEEHAN was understood to reply in the affirmative. He also intimated that the House need not then adjourn, as it could go on with the other business on the paper. Mr. WAKEFIELD said that the House could not go on with the Land Bill after the proposal of the Government to make the Land Fund colonial. The Bill must be withdrawn. Mr. STEVENS asked the Colonial Treasurer from what date it was proposed to generalise the Land Fund ? The Hon. Mr. LARNAGH replied that that would be known when the legislation was effected. It was a matter in the hands of the House. The Hon. Mr. GISBORNE desired to know what action the Government intended to take with regard to the Laud Bill ? Mr. STOUT said it was unusual to debate a Financial Statement at that stage. The Land Bill would make no difference in the Statement. The Bill simply dealt with the classification and price of lauds. Mr. J. E. BROWN was of opinion that it was impossible to go on with the Land Bill after the important changes which were proposed in the finances of the country. He moved the adjournment of the House. Major ATKINSON said he was unable to gather from the Financial Stateme'.t whether it was the intention of the Government to take the Laud Fund from the 30th of June last. They could not properly and intelligently discuss the finances till that was placed before them. The Hon. Mr. REYNOLDS said he was prepared to go on with the discussion of the Financial Statement at once. (Laughter.) Mr. STOUT said the Land Fund was a question of policy, not of date. The hon. member for Egmont when he was Colonial Treasurer was never asked such questions after he had made a Financial Statement. Mr. REID said that no doubt the Land Fund was a question of policy, but it was also a question of balancing of accounts. Surely the Government had not lost sight of the engagements of the colony, which had to be met. Sir GEORGE GREY stated the Government would not answer the question for obvious reasons. The hon. member for Egmont knew perfectly well what the answer would be when he asked the date of the colonisation of the Canterbury land fund. (No, no.) The hon. gentleman was misleading the House. He was perfectly aware that there was only the Canterbury land fund to take. Mr. McLGAN taunted the Government with not having made up their minds on the question. The Hon. Mr. SHEEHAN stated that what their predecessors were prepared to steal in an underhand way, the Ministry were prepared to take by main force. They were respectable highwaymen, and were prepared to stand or fall by their policy with regard to the Land Fund, and were also prepared to go to the country upon it. The motion for adjournment was then put, and carried on the voices.