The Financial Statement.

Opunake Times, Volume I, Issue 8, 27 July 1894, Page 2

The Financial Statement.

Net Surplus of £230,283. , [By Telegrbph.] The Hon. Mr Ward delivered the Financial Statement in the House on Tuesday evening. After referring to the bad harvests and heavy fall in the value of some of our principal products, the Treasurer went on to say: Under these circumstances it will, I am sure, be all the more gratifying to the Committee when I tell them that my estimate of the revenue for last year has been substantially exceeded by the actual results. The figures are : estimated £4,546,700; actual, £4,653,038 ; or £106,338 more than the estitimate. The stamps revenue contributed the largest excess, namely, £4B, 947 ; then the Customs, £35,502 ; territorial, £13,050; and other heads of revenue made up a total excess of £116,584. On the other hand, the railway fell short by £7452, and marine and miscellaneous by £2794, making altogether £10,246 less than the estimate. Although there was a shortage of railway revenue, the net estimated return from this source has been very nearly reached by a saving on the estimated expenditure of £7452, the leaving the net loss under?this head at £1225. The estimated disbursements were put down at £4,46p,54.7; while the actual charges for the year only amounted to £,4386,359, or £74,186 less than anticipated. In all departments the actual expenditure was under the estimate, with the exception of the Department of the Commissioner of Stamps. Results of the Year. The Land Fund, as a separate account, has been dome away with, which has simplified the account. We commenced the year with a balance of £283,779. To this add the actual receipts, amounting, as I have before stated, to £4,653,038, making a total of £4,936,817, and after deducting the ordinary expenditure (£4,380,359), we have a gross surplus left of £550,458. These handsome results enabled me to transfer, without difficulty, £250,000, which Parliament decided should be devoted to the aid of public works expenditure, leaving after such deduction a surplus revenue of £300,459. Out of this amount, however, an additional extraordinary charge amounting to £10,220, in connection with the purchase of the Cheviot Estate, was provided. Taking this from £300,453, left an actual net surplus of £290,238 on March 31st last. This sum, which is even better than the balance at the close of the preceding year, will, I am sure, strengthen our credit abroad, and be hailed with general satisfaction in the colony. THE CONVERSION ACCOUNT. The ordiuary details which accompany the -Statement show that three conversion transactions have been compleled during ' the year—viz., £400,000 debentures, due Ist March, 1893, issued under the Public Revenues Ac 1 , 1891, and to which I referred in the Statement of last year; £500,009 Imperial guaranteed debentures, issued under the New Zealand Loan Act, 1863, maturing 1915; and a small parcel (£2000) of debentures issued under the Auckland Loan Act, 1863. For the, complete conversion of these loans, including expenses, 8-4 per cent stock was inscribed at the Bank of England to the amount of £1,038,100, and upon a half a million loan becoming converted, ap amount equal to over £260,000 was set free. This, when applied in accordance with the provisions of the law, enabled the Public Works Fund to be augmented to the extent of £163,702. LOANS TO LOCAL UODIE3 ACCOUNT. The total amount advanced to local bodies under ilpe Act up to March 31st last was £544,948. 1 may remark that the grants to local authorities continue to increase the aggregate. For the year 1892-93 they amounted to £74,445, while last year they reached p totalof £87,151, The necessities of now r settlement in the North Island is accountable for the increase. As settlement proceeds apace, it follows, that the local authorities will wish to avail themselves of the opportunities afforded by the Act to obtain grants for reading at a reaonable rate of interest. PUBLIC DEBT. The gross public debt on the 31st March last stood at £39,825,415, showing an iucrease of £568,575 over tho amount at the close of the preceding year ; but £477,466 of this increase was by special authority, and consisted of debentures issued for purposes giving immediate returns —such as issues under the Native Land Purchases Act, 1892, £72,000; under the Land for Settlement Act 1893, £38;066; Cheviot Estate, Payment Act, 1093, £259,000; and under the Government Loans to Local Bodies Act, 1686, £116,500. A farther issue of £16,300 under the Naval and Military Settlers and Volunteers Land Act, 1892, took place, and additional claims under this head will iiavc to be provided for during the current year. As I before mentioned, £2,038,180 34 per cent stock has been created ; and, on the other hand, £902,000 of debentures have been converted, resulting in a fmthcr increase of £136,180 to the public debt. EXPENDITURE. Last year wo asked for £4,400,540 out of the ordinary revenue of the colony, but this year I do not think we shall require more than £4,301,095, Those figures show a not saving of £159,449 on last year’s Estimates, notwithstanding the increased populit'on and the entailing of increased expenditure. m ESTIMATED KEYENCE. Having mentioned that our expenditure for the year is estimated at £1,301,P95, it is necessary that I should smite what revenue wo anticipate w Jl be received during the same nulled. The estimate of the ordinary

revenue is £4,235,000, as against £4,262,000 estimated last year, and £4,368,537 actual receipts. Although an actual excess of the revenue over last year’s estimate, amounting to upwards to £106,000, has occurred I have not deemed it prudent to take as a guide these increased receipts in estimating the current year’s) .receipts. I prefer to err on-the right side, owing to the bad harvest, low prices, and slight financial disturbances. The receipts from the railways and customs show a falling off. If then, there should be a disparity, between the estimated and actual results the discrepancy will place me in no financial difficulty. Public Trust. The natives are showing increased confidence that the land reserves for them will be so administered by the Public Trust Office that the owners will derive the greatest possible benefit. In the West Coast Settlement Reserves the distrust with which the natives regarded the proposal to make use of the reserve has disappeared, oppostion to settlement giving place to a desire that reserves not necessary for their own residences should be leased for income. Au area of 17,600 acres, reserves which were idle and unoccupied, has been leased in 96 sections since .the passing of the West Coast Settlement Reserves Act, 1892, and the survey of an additional area has just been completed of 9000 acres, which are about to be offered on lease. From these new lands the income of the natives will be increased by £I6OO, and tho total income of reserves from £11,600 to £14,000, which provides an allowance of £7 a year to every man, woman, and child of the natives interested in tho land. These natives have besides for their own use a large area of the best portions of the land. STATE BANK. * I do not propose to discuss the merits or demerits of a State Bank. I say, whether or not, the creation of a State Bank would have been the solution so satisfactory as many predicted. It would, m my opinion, be undesirable for the Government of the colony to conduct the business of an ordinary bank. It would not be an easily managed concern ; it would be open to some if not many abuses ; it would be calculated to offer opportunities for things to be done which should not be done ; but a financial institution, guaranteed by the State, supervised by the State, and controlled by the Slate, must be in the very nature of things a bullwork against extraordinary financial fluctuations calculated to impede the industrial and general progress of the colony. We have now all the machinery necessary to enable the Treasury to contrl the note issue, should this ever be necessary. PHIVATE LANDS. The House will be asked to assent to the amount of £250,000 being provided for the purchase of private land, and out of that sum the necessary expenses fur reading, surveying, subdividing, and promoting settlement will be paid. For the important work of making roads and constructing bridges to open up land for settlement, and for sub-dividing and clearing, a further sum of £250,000 will also be asked for. Dairying. I said there were 188 factories at work, an increase of 34. The increased output of butter was 10,838 cwt, valued at £31,944 ; but on the other hand, there was a decrease in cheese of 8949 cwt, valued at £14,922. The total output was—butter, 62,500 cwt, valued at £205,959 ; cheese, 37,363 cwt, valued at £83,007. LOCAL GOVERNMENT. The Government were anxious to deal with this subject during the present session, but found it impossible, owing to other pressing demands. Many of the local bodies are financially in a very unsatisfactory state, and in ordtr to assist them it has been decided to bring in a measure authorising them to levy rates upon crown lands. From this source it is anticipated they will receive about £IO,OOO. ASSESSMENT OF LANDS. The changes I intend to propose will, I anticipate, result in a large saving to the country and of worry to the taxpayers, The change will not affect the next collection of Laud Tax as the present assessment has- still a year to run. LAND TAX ON NATIVE LANDS AND MORTGAGES. If is also my intention to bring under the operation of the Land Tax all the interests of Maoris in lanls leased to Europeans and the mortgages belonging to Maoris secured upon land. ASSESSMENT OF BANKS. I shall also submit a proposal which will place on a more equitable footing than heretofore the taxation levied on the profits of banks doing business in New Zealand. The proposal will be of the most reasonable nature, nud will bo brought forward, not so much with the object of obtaining additional revenue as of more fairly adjusting contributions, by the various banks under the Income" Tax. I am of opinion that we should adjust a system of taxation so as to hold cut inducement to banks to bring money into the colony. MIXED FARMING. The results which attended several important steps that have been taken in the exportation of frozen meat, and in the development of the dairying industry, have more than ever impressed upon us the desirability of adopting what is generally known as mixed fanning,” A large and valuable field lies before those who arc enterprising enough to embark upon the cultivation of sugar beet, and have the requisite knowledge and capital to enable them t > do so successfully. It is but fair io assume that people would shrink from the possible loss that such au undertaking might possibly cause them. I shall therefore submit to the House proposals Avliich should act as an incentive to the enterprising to vigor-

ously embark on the industry I have named. I shall ask the House to agree to a bonus being paid to the amount of £50,000 for the production of sugar beet for a limited period. I need not expatiate upon the numerous advantages which are sure to follow such an undertaking. Among other things it will afford a fresh field for the employment of labor, and must commend itself to the well-wishers of the colony. COAL MINES. In order to further augment the value of the coal mines in the colony, the time has, in my opinion, arrived when the country should be prepared to pay au export bonus on coal despatched to foreign markets for , the purpose of enabling a fair export to be made in this direction. The House will be asked to consent to the payment of a bonus of 2s per ton upon 50,000 tons of coal if exported within twelve mouths from the Ist October next. The necessary conditions for this will be furnished in detail, one of which will be that the coaj in question must be sent to foreign markets, viz., markets beyond Australia. ASSISTANCE TO FRUIT GROWERS. Fruit has free admission into the colony from the Pacific Islands, Tasmania, and Australia, and it would seem to me that while we are protecting our industries and endeavoring to find fresh avenues for employment for the people, those desirous of using the imported fruit should be prepared to pay higher prices in order that fruit may be profitably produced here, and a duty upon fruits which can be grown in the colony should be levied for this purpose. Then the railways, which have been made for the general use of the people and for the primary object of developing the resources of the colony, should be placed at the service of fruit producers at greatly reduced rates. In that way fruit producers living, say, a distance of 100 miles from a consuming centre, should have their fruit conveyed as cheaply as mere favored producers living only twenty miles distant. * SMALL DAIRYING. Small settlersin various parts of the colony have been assisted by the; carrying on of the smaller class of dairying business. The railways have not to the extent which they ought enabled this class of settlers to get their produce at reasonable rates to larger commercial centres. The Government aio of -opinion that producers of such articles as butter and eggs are largely dependant upon the sale of these for & living in the larger centres, and should have extended to them privileges similar to those which are suggested for the facility, of transit of fruit. The railways should be used for settlers of this class for the purpose of overcoming disabilities arising through distant markets, or making it as desirable for settlers living a distance from a town, as to live where those now more favored do having selected an allotment closer to the city at au earlier date. I earnestly commend the above suggestions to the careful consideration of hon members.