THE FINANCIAL STATEMENT.

Te Aroha News, Volume III, Issue 156, 29 May 1886, Page 3

THE FINANCIAL STATEMENT.

Wellington, May 28." Thk Colonial Treasurer (the Hon. Sir Julius Vogel) delivered his Financial Statement last night. The following are the principal points of the Statement :— Revenue and expenditure of 1885 6. The last financial year commenced with a surplus of £19,891 ; and it closed with a surplus of £37,859. The result is arrived at thus simply : The estimated revenue has proved lesa than was anticipated by £1,954 and the expenditure less by £39.875 Deducting the £62 and the £1,954 from the saved expenditure, you have the same result of a surplus of £37,859. There was a saving in the defence expenditure of £16,446, and various reductions in other departments, bringing the total savings up to £100,240. But, on the other hand, there were excesses of expenditure amounting in all to £60,365 The principal items contributing to this amount were interest and sinking fund underestimated ; Charitable aid, £13,984; printing and stationery, £1,622; property tax (on account of triennial valuations), £2,545 j post and telegraph, £2,278 (for repairs) ; and £4,/42 for bonuses earned by mail steamers in excess of estimate ; and services not provided for, £9,239. The revenue, as I have said, falls short of the estimate by £1,954. The Customs duties were £15,175 short j the stamps, £4.891 ; the railways, v £5,695 ; the Marine, £1.886 ; and the depasturing licenses, £13,166. On the other hand, there was an excess on the item registration fees of £1,600, and £37,819 on the item miscellaneous. Of the latter increase, £25,000 is due to the sinking fund released under the Public Debts Sinking Fund Act, " 1868, on account of excessive accumulation, and £19,000 to interest leceived on public money. The total amount of revenue under the estimates is £41,539, and the estimate £39,555. The difference between the two gives the net underestimate of revenue £1,954, to which reference has been made. I have to give an explicit denial to the statement that liabilities were unusually held over to swell the surplus. The liabilities at the close of the year are not more than ordinarily is the case, whilst the advances have been more closely brought to charge than in the proviouß year.

Land Fond. The land fund had a balance at the commencement of the year of £31,931, and at the end of the year there was a deficit of 20,384. This eminently unsatisfactory result is but the consummation of a series of diminished receipts not compensated sufficiently by reduced expenditure. The item of native rates charged to the fund is a very disturbing one- These payments are made on account of native owners, and are recoverable as the land ia sold. To make them a charge on the current revenue is neither in spirit nor letter consistent with the principles to which effect is designed to be given. The beat remedy I can propose is that the total amount of these payments ehall be treated as advances from the public works fund, reducible by receipts from time to time recovered from the natives.

Public Works Expenditure. There have not been any new loans negotiated since the House was last in session. Thetotal receipts of the fund amounted to £2,544,166. The expenditure out of the fund daring the year was £1,287,086. The balance to credit at the end of March last was £768,780, which includes advances in the hands of importees. As pointed oat on previous occasions, there . is always less money really available for expenditure than appears from the gross balance. The obligations which remain to be fulfilled make it necessary that fresh means should be promptly provided. At present, the only other means existent is the North Island Trunk Railway loan. The law, unreservedly, as I- think, allows this loan to be used any purpose authorised by Parliament to be provided out of the public works fund. Thus, if the loan were negotiated, the proceeds would be available for defraying the expenaiture authorised by the usual imprest accounts. The Government have been desirous to avoid enabling the moneys to be diverted from the purpose for 1 uhich it was unquestionably intended. At some risk, therefore, I have avoided negotiating, as the early meeting of Parliament will enable a decision to be more promptly arrived at regarding a new loan. I should like to send Home the necessary authorities for raising such a loan in time to enable them to be used at an early date. The nominal effect only, which is given to the purposes for which money is borrowed, is mischievous to the colony and unfair to the lenders. To show the extent of the diverson I may mention that there were certain purposes set for in the schedule to three Millions Loan Act. That loan has been expended, besides which there have been raised two loans— one for a quarter cf a million, and the other for a million and a half. Deducting the balance on the 31st March last, chere was at the time about four millions of borrowed money expended since the authorisation of the three million loan. Nevertheless there remained unexpended on the objects provided by the schedule to the Three Million Loan Act no leee a sum than £673,000. The Government think that the proceeds of future loans and the loan for the North Island Trunk Railway should be tied down for the purposes for which they are borrowed, and provision to give effect to this restriction will be proposed to the Assembly. At present the moneys borrowed are free to be voted as Parliament decides. Later on I will submit to the committee the nature and extent of the fresh loan for which the Government will ask authority. Hon. members will understand that it is proposed to* tie down the money for purposes mentioned in the Loan Act. This will not, however, deprive Parliament of the power of controlling its expenditure. It will be placed to a separate fund, and be uaeable only for its designed objects ; but within those objects it will be competent for Parliament to decide the amount to be expended each year.

Public Debt and Loam Conversions. The amount of public debt on the 31et March last was £31,688,349. It is to be remembered that the tendency of the conversions which have been going on so eagerly is to increase the nominal amount of the debt, but to decrease the annual charge. To show the net result of the conversion operations, which have proceeded on a large scale, I may mention that since the meeting of Farlia ment, bonds to the amount of £10,053,600, for which terms of conversion were offered, £4,137,700 have been brought in, The Agent-General has cabled to me the actuarial entimate of the result as follows : — Firstly, augmentation of charges for the first six ye*re f £42,229 ; and, afterwards, an annual reduction of £46,842 ; thirdly, total reduction' of charges, £20,179. The results are, I think, very gratifying. We are rapidly bringing our securities into carrying a lower rate of interest Soon there will be no part of the debt bearing interest of more than 4 per cent,, and the grateful task will fall on a future Treasurer —I venture to predict— of converting the 4 per cent' into 3or 3 J per cent. ~ j