The Sonthland Times. FRIDAY, SEPTEMBER 25, 1868.

Southland Times, Issue 1027, 25 September 1868, Page 2

The Sonthland Times. FRIDAY, SEPTEMBER 25, 1868.

Fbom late advices from "Wellington, it appears that by certain modifications in the proposed adjustment of the financial relationship between the General Government and the Provinces, which are likely to be carried into effect, Southland will be placed in a more favorable position than could at one time have been anticipated. Instead of having to pay annually £13,598 out of her Land Eevenue, until the extinction of the debt, she will in reality — should the proposed scheme be carried, of which, fortunately, there is every probability — have only the very moderate sum of £4,605 to make up from that source. Eor the benefit of our readers, to whom Blue Books are not at all times available, the position of affairs may be briefly stated thus : — Under existing arrangements, the Province has to meet yearly, the following liability, viz., interest and sinking fund on provincial debts, £24,674, General Government services, provincially charged, £7,635, making a total of £32,309. From this sum we have to deduct the half of the consolidated revenue, £18,711, leaving the balance, £13,598 to be made up from other sources. The Government now, however, propose to assume the payment of the whole of the debt, charges, and also of General Government departmental expenditure hitherto debited to the Province, and, in consideration of this, to appropriate the whole of the consolidated revenue, and charge the land revenue of the Province with the sum of £9,000 annually to make up the deficiency— £l2,ooo was the amount first proposed,but on reconsideration, it has been reduced £9,000. From this £9,000, we must now deduct £2,800, capitation grant allowed for the management of goals, &c, and £1,595 for harbor maintenance, making together, £4,395, which, taken from the £9,000, leaves a balance as already stated, of only £4,605 that the province haa to pay out of its land Tevenue. In other words, by being allowed the mere handling of half of her own ordinary

revenue, and the payment of her 1 debts, Bhe had every year to make up a deficit of £13,598. By being deprived of her ordinary revenue, and of the immediate management of her debt, she has only to make up a deficit of £4,605 ; thus absolutely gaining £8,993, the | diffeience between the two amounts, by the arrangement. Southland has acquired this very easy situation through the financial scheme of Mr Hall being based upon population — in short a pre-eminently colonial one — instead of being adjusted provincially in proportion to customs returns. Hitherto a large proportion of the customs revenue, properly belonging to this Province, has gone to swell the apparent returns of Otago, that Province gaining all the benefits, and this unsatisfactory state of matters also exists | between several of the other provinces. Such will toot, however, be the case in future, as each Province will be credited with a proportion of the customs returns of the entire colony, according to population, altogether independent of where collected. As a contrast to Mr Stafford's scheme, we may state that should Mr Pox's plan become law we would be in a very different position. Mr Pox proposes to appropriate the whole of the ordinary revenue of the Provinces to the General Government, and allow them in lieu thereof a capitation grant of thirty shillings per head of population. Southland would thus be in the position of having £12,000 wherewith to pay £32,309, leaving £20,309 to be made up from' land sales. To strike another balance by the substitution of Mr Pox's scheme for Mr Staffobd's, the Province would lose £15,704 per annum, the difference between the £20,309 of the former's, and the £4,605 of the latter's financial policy.