FINANCIAL STATEMENT.

Patea Mail, Volume IV, Issue 346, 10 August 1878, Page 2

FINANCIAL STATEMENT.

The following is a summary of the Financial Statement delivered Ly the lion. Mr Ballauce to the Assembly on Tuesday evening last: The Colonial Treasurer first explained the steps taken during the recess to simplify the public accounts. In stating the ordinary expenditure and income for the past year, lie excluded the Provincial Liabilities, ’which were afterwards explained separately. The total ordinary expenditure for 1877-8, was £3,030,241 against an estimated expenditure of £3,21)6,188, so that upon the votes of last session there was an unexpected power of expenditure to the amount of £175,940. There was a small excess under head of Law and Justice and Native Department, while under the head of Educalion there was an excess of £''9,261. The total stated did not. include all the disbursements of the year. Taking the Land Revenue paid to Local Boards under the Financial Arrangements Act, together with £405,093 of surplus Land Revenue paid to counties, and other items, there was an amount of £725,307, which brought the year’s expenditure up to £3,755,519. Adding the gold duty, license fees, paid over to local bodies, and there was a total disbursement from the consolidated fund during 1877-8 of £3,909,240. The renteiuion of certain sums out of the surplus land revenue of the provincial district of ilawkcs Bay and Canterbury was to cover the cost of bringing up the arrears of survey outstanding on the Ist January, about £5,700 and £127,000 respeclively. The sum of £4,512 Is lOd was all that was available in the case of Ilawkcs Bay, and £127,114 15s 3d in the

case of Canterbury, which were accordingly returned for the purpose of meeting the charges referred to, money to be appropriated each year according to the estimate required for arrears of survey within tiie year in the provincial district until either the money be exhausted or the surveys completed. £34.512 had been placed on the estimates for appropriation for work to be clone this year —the amount in excess to be placed in the Bank as a fixed deposit, the .accruing interest, together with any balance of the principal not required for the work. llcvenuo—lß77-78. —The surplus hi ought forward from the previous year, was estimated by (he then Treasurer, at L 148.220. Of the sum an estimated, only L123,T10 had proved to be available, being L 25,110 Os 8d less than the estimate. Thu revenue of the current year was estimated by the late Government at L 3,153,685, consisting of ordinary revenue L2,263,1Gt), and territorial revenue L 890,525. Thence revenue actually collected, amounted to L 3.915,315,.915,315, consisting of ordinary revenue L 2,328,752, and territorial L 1,586,562, showing an excess on the estimate, of L7G1.G30. It would be interesting to the committee to know that the benefit the Exchequer had received from the colonization of the laud revenue, was L 91,749. The Customs revenue reached L 1,271.931, or an excess of L72,9C1 over the oslimnte. On Stamps, there was an excess of L27,OGS, chiefly due to legacy duties Other excesses over estimates Were Postal LG,348, Telegraphic L 2,361, land transfer L 7,078, and miscellaneous L 15.074. The income from railways, was estimated at LG90,450, but had reached only' L54G,458, showing a deficiency of L 53,991 ; this resulted from certain lines not having been opened during the year, as they were intended to have been ; and the expenditure had been proportionately less than the estimate. The profit for the year on railways, was Ll4s,lsl —against L 84.182 during 1876-7. The land icvenuo had far exceeded thodilferont estimates formed last session, and was the largest amount yet collected in any one year. Comparing iastyear’s revenue with that of the preceding year, the result was equally favourable. The net increase on ordinary revenue was L 423,919, and on territorial revenue L 580.707. This showed an increase of L 1,054,626 ; or adding the iuciease in the revenues of local bodies, which amounted to L 75,784, there was an increase on all revenues collected by the Government, last year of L 1,080,411 over the previous year. Summing the results of 1877-8, the honorable gentleman said the receipts lor the year, as already stated, amounts to L 4,445,560 5s 6d ; the expenditure was LJ,969,245 17s Id ; the excess of receipts over expenditure being L 476.319 9s sd. The actual balance on the consolidated fund on the 30th June was L 629.705 b.s od. But this was roducable by a sum of L 0,743 9s. Brought from loan in aid ol provincial liabilities by the balance of the deposit account L93,0G9 17s 2d ; and by sums held at credit, of several counties L04,;.;02 11s lOd. Deducting these sums Irom the total just referred to there remains L 376.310 8s sd, agreeing with the excess of receipts over expenditure. To this wc add the assets realisable L 41,4,53 3s 91, making L 520,772 12s 2d. The liabilities to he provided for out of this sum consists oi 20 per cent, laud fund, and other monies payable to counties or availab’e for sneehil

* r *'•*•o,4 o*. 1 ~ »Ii I U lil ’ ‘ Ulllillfii J departmental services L121,1G0 Is 9.1. These sums amount to L 400.303 19s, and di a!nothin them fiom tlio' balance of L 520.172 12s 2d, there lomains LT20,4G8 1-is 2d, the surplus of (he year 1877-8. Lonsideiing that, the effect of the financial changes at the close of last session was to pi oduce a large estimated deficiency this surplus is as unexpected as it is gratify - ing-. The question I hen arises, how should we_ dispose of it? The Government beiiovc (mat if the railway extension is to be exhausted and carried on without interruption until it connects every part of each Island, public loans must be aided from some other source. I refer here only to railways which should be undertaken by the for several years a moiety of the I stamp duties was set aside for the purpose, but if I think rightly the policy was discontinued. A surplus seems to bo exactly one of the services from which sum it ought to flow, and we propose to place T 100,000 of (he surplus of the past year to the credit of the public works account, cavmg a balance of L2O.4GS 13s 2d to bo brought forward to the credit of the ordinary account of the present year. If the committee approve of this mode of applying a surplus, the ordinary increase on the estimate of land revenue will in future be applied to supplement the fund available for the prosecution of public works. After explaining the position of the provincial liabilities account, the hon the Colonial Treasurer described the raising of (he L 3,500,000. The Bank of England undertook to issue the loan for a commission of T per cent. The mice adonf ed wns rem-

and live per cent, rate of interest, and the total amount subscribed for was eight millions and three - quarters. The L 3,500,000 raised included one million under the Act of 1876, to meet the ad- \ ancc on short-date debentures falling duo at the end of this and the beginning of next year; and L 2,500,000 under the Act of last session.: L 300,000 of the loan was appropriated to provincial liabilities, leaving L 2,200,000 available for public works. The guaranteed debentures realised were still to remain available as a security on which to obtain temporary advances in London out of the appropriations last year. For public works L 1,167,583 had been expended, and LI, 126,147 remained unexpended. The total amount of loans yet raised for immigration and public works since the Public Works Account was created in 1870 was L 13,700,000. This amount had been sup-

plemented by a moiety of stamp duties 1.204,657, and contributions and transfers amounting- to L 75,968, showing a total of L 14,040,620. The expenditure up to the end of the financial year was L 12,038,472, rtduceable by a sum of L 54,791, repayable to the account, and leaving a balance of L‘2,056.940 available for appropriation. The gross debt of the colony on the 3Jth Jum:, including the loan just raised, but exclusive of the guaranteed debentures, was L 22,491,111. The sinking fund account amounted to L 1,584,992, and deducting this from the gross debt, there was a nett indebtedness of L 20,906,118, The annual charge on the 30th June, for interest and sinking fund, being L 1,195,318. ’ 6 The issue of treasury bills was explained

and the instructions sent. Home, as to the operations under the Consolidated Act of last session, were stated. The hon gentleman added that to end the objectionable system of carrying on expenditure for a considerable portion of the year, by means of Imprest, Supply Bills, it would be proposed to follow the practice of the House of Commons, and to go on with the estimates in Committee of Supply at the earliest possible moment.

Estimated expenditure 1878-9. Dividing the expenditure under two heads, viz., permanent appropriations and annual charges, it was estimated that the expenditure during the current year, under current head, would be L 1,809,767, and under the latter, L 2,182,741, adding £200,000, to represent fees. &c., payable to local bodies. There would be shown a total estimated expenditure for the year of L 4,193,509. It was intended that a number of charges hitherto made against loans, should in future be met out of revenue, and it would be proposed to charge against the revenue, a sum of L 44,00 J for heavy guns for the defence of the principal ports. In estimating the revenue for the present year, the result of alleviation that might be proposed in the tariff, would not he taken in account, but he would deal with the revenue to be raised under the existing law. From taxation, L 1,490,000 was expected, L 1,320,000 of that being from Customs, and L 170,000 from Stamps. Un ier the head of receipts for services rendered, L 1,112,145 was anticipated. Those items would make altogether, a total of ordinary revenue amounting to L 2,602,145. Included in this, was L 710,000 from railways, or L 148,000 in excess of the receipts under that head during 1877-8, making what was believed to be a moderate estimate. L 1,229.677 was set down as territorial revenue ; from receipts specially applicable, L 230,215 was estimated as receivable. These figures showed an estimated revenue of L 4,062,637, or, including I the fees payable to local bodies (estimated j at L 200,000), a total of L 4,262,037 ; add | the balance of the surplus of last year, j L 20,498, and the total estimated receipts j for the year, was L 4,282,505, and dednot- | ing the estimated expenditure L 4,193,500, I there would be a surplus of L88,07G available to meet supplementary votes or contingent,expenditure. The- public works account and the public trusts were next I briefly referred to, and the hon. Treasurer | then spoke of the progress of the colony. I The most, gratifying feature (he said) is ! the remarkable increase of exports for the i year ending December, 1877, which stands j at LG,327,472, against L 5,673,465 in the j previous year—an increase of LG54,007. j The imports, unnaturally inflated in 1874 ! to upwards of L 8,000,000, have fallen to ! LG.973,418, indicating probably a more healthy condition. The quantity of wool exported in the calendar year of 1877 exceeded that of the proceeding year by about 44 million lbs weight ; the value showing an increase of L2G3,122. The value of gold exported in the past financial year | was L 1,475,669 against L 1,407,247 in the | previous yea'-, the increase being LG8,422. 1 The export of grain slightly declined in the year ending December 1877; ihe return was L 290,415, against L 344.142 in 187 G. Thu ijou gen: human stated at length, rc- [ forms proposed respecting the tariil:. Ad valorem duties were shown to have been a failure, and encouraged dishonesty. The ( ...sir .o I coo,mdses two,hundred and ally spocnied headings, of which muetyone are fixed rales, and one hundred and litty-niue ad valorem, lie proposed that twenty headings should be taken from the ad valorem list and added to the fixed, and it (he remission of duties were carried out, thirty-eight headings would be altogether removed from the tariff. After carefully explaining the principles on which taxation should be based, and ihe position of various sources of income, distinguishing between land and general revenue, the lion, gentleman said it was proposed to abolish altogether, certain Customs Duties which either fall on the necessaries of life, or turn (ho wheels of industry, or render more complex and costly the system of; collection, the list of articles being {•numerated. Considering Ihe largely increased value to lauded property, through Piddle Works policy, and increase of population, it was proposed to adopt the principle of taxing the actual value to sell, minus improvements, embracing both town and country, with a re-valuation every third year. The natural increase of wealth thus ascertained from one peri.id to another, will indicate one peculiar and remarkable kind of progress, namely, that arising from the general prosperity of the community, apart from the enhanced value which labour gives to the land itself. ' I

A summary of proposed now taxes was given ns follows The annual amount of the land tax I have estimated at ,£IOO,OOO, the income tax from Joint Stock Companies will, I expect, yield LIO,OOO. From beer brewed in the colony we hope to obtain L 30,000, and from sparkling wines say LI,OOO. These different sums make up a total in fresh taxation of L 141,000. deducting from this tne total of remissions— LI 17,000 —there is a margin of L 24,000 which the new taxes are calculated to bring in above the revenue remitted, but there will stand against this margin the departmental expenses incurred over the land tax, which will probably be not less than LIO,OOO the first year. In conclusion, the lion. Treasurer, said—These proposals, if adopted, will give a fresh impulse to the march of progress in New Zealand, as they will show a country inviting labor as well as capital from all parts of the world by the justice and liberal character of its legislation. It cannot bo doubted that the colony possesses inexhaustible resources. It is true that nature has bestowed upon it the most lavish gifts. But the bounty of nature must be matured by the beneficence of our institutions and the equity of our public policy. To this end our purpose has been directed, and we ask the Assembly to give it form. A resolution embodying the proposed new tariff was then moved, and being agreed to, the House adjourned.

Minutes of last meeting - were read and confirmed. Correspondence included —Letter from Treasury, Wellington, covering statement of fiist payment of £295 Is, on deferred payment land sold at Whakamara ; from G. S. Cooper, re application for special grant from sales of Waimate Plains ; from tlie Treasury, covering statement of payment of £123 15s 6d, on deferred payment land sold at Otoia-Opaku ; from 25th Load Di.stiict, covering statement of expenditure for 1878-79; from Waver!ey Town Board, asking if Council will transfer road through Waverley to Board, and on what terms ; telegram from J. McLean, Wellington, that contract was signed, and awaiting Mr Sherwood’s inspection plotter from J. Knowles, that £2,391 8s KM would be placed to the credit of County, for Mountain Road ; from 25th Road District, covering balance-sheet ; from Manntahi settlors, objecting to expenditure ol 25th Road Board ; letter from .1. McLean, covering contract ; telegram from G. S. Bridge. Wellington, asking - for information re hospital; telegram from same, re Mawhitiwhiti Reserve ; telegrams from G. F. Hherwood and G. S. Bridge, that aratingclae.se must be inserted in the Pa tea Harbor Bill, to ensure its passing, and requesting the Council tc pass resolution to that eftect. Mr lloneyfield, who was absent from last meeting without explanation, staled his reasons, which were accepted by the Council as satisfactory. Application of Waverley Town Board was ordered to lie on the table till next

meeting. Resolved that correspondence re Mr McLean’s contract lie on the table til! Mr Bherwood returned from Wellington, for explanation as to delay in forwarding. A discussion took place on telegrams received from Messrs Bridge and Sherwood, with reference to the insertion of a rating chaise in the Patca Harbor Bill. The majority of members considered it was a matter that should he dealt with by the ratepayers before the Council took any steps. It was ultimately decided to hold the subject over till after dinner. Mr Campbell waited on the Council as a deputation from Manntahi settlers, to oppose the proposed expenditure of the Patea West Road Board. The ground of complaint was that Ball Road last year received £l2O, and this year £7O was proposed ; whereas the Taumaha Road liad only received £2O last year, and the small sum of £3O was proposed this year. On behalf of Manntahi settlers, Mr Campbell objected to the amount set down for expenditure on the Ball Road, as lie considered the Taumaha Road was being overlooked. Manntahi was wholly dependent. on this road for firewood, besides which about twelve settlers required the road to get to their land. About 4,000 acres were at present being - taxed along the Taumaha Road Messrs Mcßae and G. A. Marchaut represented the Board, and staled that two days had been spent in going round the district, and the money had been laid out as judiciously as possible. The money voted for Ball Road was not sufficient, ami would barely make a bridle track. There were between twenty and thirty settlors living at the back, and unless the proposed expenditure was allowed, these .set'll.-ts goiihi not get to and from their land. The Ball Road also opened up a large tract of coimtrv, which ought to be considered, 'there "was aguiiy'm t lie la urn ana mad, which would take £l5O to make, and tin’s was beyond the means of the Board ; and no settlers lived beyond this gully. Manntahi had always been able to get their firewood hitherto, and they would no doubt be able to get it notv. The deputation then withdrew. Mr Wilson thought that the old settlers

should not be overlooked for new ones, and something should lie done for the Manutahi settlers.—lt was generally considered, however, that the Council would not bo justified in disallowing the proposed expenditure of the Board., It was proposed by Mr Dale, seconded by Mr Honeylield, and carried, “ That the objection to the proposed expenditure of the Fa tea West Boud Board be not entertained.” A deputation consisting of Messrs Tcnncnt. Hibson, Tapiin, Thomson, Croft, Tregoar, Mcßae. and A. Wood, ihen waited on the Council for (lie following purpose : To urge upon the Council 10 co-operate with a public meeting that had been called to fake steps against the removal of the Survey Officer and maps to New Plymouth. Also the appropriation of 25 per cent, of the Waimate Land -Revenue to the New Plymouth llarLmr. The Chairman said the Council would do their utmost in the matter, and the deputation withdrew. A petition was read from a large number of Normanhy settlers, asking the Council to re-consider their decision to erect a pound at Normanhy. Ordered to stand on the table.

The Committee appointed to inspect the Hospilal (Messrs Sherwood, Dale, Bridge, and Honeylield). reported that limy had inspected the buildings used for Hospital purposes, and found them quite unlit for such. The cost of maintaining the Hospital for the last two months was about .£4O a month, with a prospect of an increase instead of a decrease. Committee also inspected the reserves set aside for Hospital purposes, and considered the one in Unthanks Road the most suitable to erect permanent Hospital on. The following resolution was unanimously adopted—- “ That having examined the Hospital, the Committee are of opinion that the buildings are utterly unlit for Hospital purposes, and that the Council be recommended to inform the Government that unless they granted substantial aid to erect a serviceable building on the Hospital Reserve, the Council will be unable to continue its maintenance.” Dr Warren, by request, furnished the Committee with plans for a suitable Hospital, showing a building 42 x 40 feet, with 22 feet studs, ground floor of building to be finished throughout, upper storey rough, with one partition through centre, iron roof, painted with three coats of paint, the estimated cost of which is about £SOO.

Accounts were passed for payment. The Foreman of Works reported that during last month the main line of road had been in a very bad state, and until the weather changed, little could be done to improve it. Contracts Nos. 2, 3, 4, 5, 6, Mountain Road, were in fair progress, and would have been farther advanced only for the severe weather. Recommended an advance of £6O to Manning and Hughes, Contracts 4 and o, Mountain Road.

Proposed by Mr Davidson, seconded by Mr Milne, and carried, “ That the amount recommended by the Foreman of Works (£6l) be paid in advance to Manning and Hughes, on Mountain Road contract.” Proposed by Mr Dale, seconded by Mr Wilson, and carried, “That the Comic - ;! herewith regret that it is intended to remove .lie Survey 0151 cm - , and imps of records concerning the land of this County, to the town of New Plymouth, and hope the Govermu ot wj'l not o.dy interfere to prevent such injustice, hut rather give us additional facilities, by creating a Land Office for tlie Patca County.” Propose! by Mr Dale, seconded by Mr Milne, and carried. “ That the Council would urge on she Government,the rescinding of that portion of the New .Plymouth Harbor Endowment Bill, which would deprive Patca County of the benefits arising from the sale of its lands.” Proposed by Mr Davidson, seconded by Mr Wilson, and carried, “ That the Chairman be requested to interview the members of the Government in snppo t of the foregoing resolutions, and urge immediate action thereon. Proposed by Mr Dale, seconded by Mr Milne, and carried, That the proposed expenditure of the Patea East and West Road Boarde be adopted.

Proposed by Mr Dale, seconded by Mr Milne, and carried, “ That this Council consider that the Government should bear the whole of the cost of maintaining hospital---, and that the decision of the Council hr telegraphed to the Ohanaiian, now in Wellington.” Proposed by Mr Dale, seconded by Mr Milne, “ That all moneys that have or may be received by this Council from Government on account of land sold on deferred payments within the County, he handed over to the respective Road Boards lop expenditure in accordance with the •‘tf.iand Act, 1877.’ " Proposed by Mr DaviKon as amendment, seconded by "Mr Wilson, and carried on division, “ That the question he left over until next meeting of Council, when a full attendance may bo expected.” Ayes— Davidson, Wilson, Kells. Noes —Dale, Milne, lloneyfield. Chairman gave casting vote with ayes. Proposed by Mr Iloneyfiel 1, seconded by Mr Davidson, “ That the chairman he requested to apply to the Government lor Beetiou No. Block 36 for county purposes.”—Carried. Proposed by Mr Dale, seconded by Mr Milne, “ That a rate of 0.1 in the £ he now struck on all rateable property within the county for the period fiom Bth August, 1878, to 31st March, 1879, inclusive, such rate to be due and payable on 2nd September, 1878. and that Councillors lloneyfield, Wilson, and the mover sign the rate book.” —Carried. The question was mooted of giving a bonus for finding a good gravel pit. It was found to answer in Now Plymouth, and would no doubt be the means of bringing out good gravel. Proposed by Mr Dab*, seconded by Mr Wilson, “That this Council approve of giving a bonus to any persons who may discover good gravel in convenient places for county purposes, such bonus to be decided next meciing.”—Carried. Proposed by Mr Davidson, seconded 03' Mr Mime, “ That this Commil decline to give an opinion re Rating Clause for Patea Harbor Bill without consulting the ratepayers."— (gu-risd. The Council adjourned.

Notice; of Motion by Mr Kells—That tins sum of £SO he paid to tiie Carlyle Town Board, and £7O each to j tie Ilaw-m ami Waveriey Town Boards, out of tii : County Funds, to 1); laid on!; by those; B ratals in any way they think proper for tin; benefit of their respective towns, ilm money to be paid some lime during the month of October next.”