FINANCIAL STATEMENT.

Patea Mail, Volume V, Issue 477, 19 November 1879, Page 2

FINANCIAL STATEMENT.

We have before ns a telegraphic report of the Financial Stalenmut made on Monday night by the Hon Major Atkinson. We find, however, that the figures it contains are so contradictory and inconsistent, that we will only give those portions that appear to us- to he correct, and wait tor more accurate information. In his introduction, the Hon the Treasurer referred to the present position us “ a position unparalleled in the history of the colony, for with abundant natural resources, with excellent credit, and with an increasing ordinary revenue, notwithstanding great commercial depression, we find ourselves reduced to such a position as to cause the gravest anxiety to all true friends of the colony, and to necessitate measures of financial reform, involving large additional taxation.”

Treating of the Consolidated Fund, he pointed out that the year 1878-79 began with a surplus of LI 1(5,QU0, and ended with a deficit of L 131,000, which, however, would not have been so large had not L 50,000 of Land Tax been left uncollected. In the present year, 1879-80, tbe estimated revenue is L 3,193,900, and the expenditure L 4,105,858, leaving a deficit to be dealt with, L 911,958. He then proceeded to enquire into the cause of the deficit : “ How is this estimated deficit, amounting, after correction, to Lt)51,000, to be provided for this year, and what action must be taken to equalise our revenue and expenditure in future, for although it is somewhat unusual, I am compelled by our peculiar circumstances to look beyond the present year, and in some measure to take counsel for the next. But before wc can answer these questions satisfactorily, we must examine the deficit, and ascertain whether it is of a temporary or permanent character, because our mode of dealing with it will greatly depend upon the result of that examination. Now, to enable the Committee to come to a decision upon this important point, it would be necessary to examine and compare the receipts of the Consolidated Fund for some time past. 1 propose to do so for the last three years, and raised l.y taxation in the financial year: —187(3-77, L 1,319,643; in the year 1877-78, L 1,424,029, being an increase of L 104,386 over the preceding year ; in the year 1878-79, L 1,505,237, being an increase of L 51,208 over the preceding year, and of L 185,594 over the year 1876-77, and this year the estimated amount of receipts is L 1,512,300, being about L 7,000 only more than last year, though largely exceeding the receipts of the years 1876-77 amt 1877-78 respective!}'. For services rendered (omitting, for reasons I will presently give, receipts from railways) there was received for the year 1876-77, L 318,250 ; for the year 1877-78, L 336.367 ; for the year 1878-79, L 421,377, and this year the estimated amount is L 401,600 -, hero, also, as in the case of taxation, it will be observed that tbe increase has been marked and steady during the three years named, and that while the estimates of the total receipts for this year iu respect of services rendered is about L 20,000 less than the actual receipts of last year, ah increase of amount in some of the items of receipts is anticipated. I will not trouble the Committee with remarks upon the separate items included under the two heads of Taxation and services rendered, but I may say that an examination of Table A, which will be appended to this Statement when published, will show that in almost every case there has been a steady increase from year to year. As I have omitted the receipts from railways, my reason for so doing is, that our railway system was too incomplete in 1876-77 to compare fairly with the receipts in 1878-79. But according to the comparative statement or receipts and expenditure on the railways, made by the late Minister of Public Works in August last, the figures I have given under the head of services rendered do not show as large an increase as I might fairly claim. It is not, however, desirable in any way to overstate the case. I have not thought it necessary to take the receipts of more than three years for comparison. Had I done so, however, the only deduction to he drawn from a careful consideration of the figures, would certainly not have weakened my conclusions. On the contrary, the further back we go tbe stronger would my case appear. It may then, I think, be fairly stated that our receipts from taxation are steadily increasing, as also our receipts from services rendered, and that the slight check which the revenue derivable from these services has met with during the current year, is temporary only, and is fully accounted for by the general depression of trade throughout the world. In the financial year 1876-77, we received from land sales, L 870,019 ; pastoral rents, L 135,036 ; total, L 1,005,855. In the year 1877-78, land sales, L 1,440,824 ; pastoral rents, L 145/738 ; total, L 1,586,562. Last year’s land sales, .L 737,604; pastoral rents, L 132.035 ; total, L 869.729, And the estimated revenue for this year is, for land sales, L 248,000 ; pastoral rents, L 132,000 ; total, L 380,000. It will be seen that the land sales last year only reached L 737,694, having fallen short of the estimate by L 484,304, and that this year they are estimated to produce only L 248,000. Heie we find the cause of our deficit, the falling off in the Crown land sales. If last year they had reached the estimate, and could be relied on this year to yield L 1,150,000, (this amount being about the average receipts of the last two preceding years), we should have this year a small surplus, instead of an estimated deficitof L 951,002. In other words, under our present system, we require from land sales, exclusive of the cost of survey and administration, something like L 900,000 per annum in aid of ordinary revenue.” The Treasurer then proceeded to deprecate the system of making the Land Fund a part of ordinary revenue. This, he said, is living on capital,’ not on income. As a help out of the present difficulty, the Government propose to stop subsidies to local bodies, but if the House determines to retain them, taxation must be increased, in proportion. This being.the Government proposal, the Treasurer proposes to deduct the subsidies, L 275,620, from the deficit of L 819,669 already mentioned, so that there remains to be provided for L 554,049, and~ this the ■Government propose to meet by the imposition of a Property Tax, tbe increase of the Customs and Stamp duties, and the release of sinking -funds and interest, by bringing the Consolidated Stock Act into operation.