Financial Statement.

Te Aroha News, Volume XXVII, Issue 43115, 18 July 1907, Page 2

Financial Statement.

SURPLUS OF £717,825

The Colonial Treasurer (Sir Joseph Ward) j presented to the House on Tuesday night, the Financial Statement, of which the following are the salient features : Mr McKenzie and Gentlemen. —In submitting the Financial Statement for the year ended 31st March last I may say that the revenue has surpassed that of any previous year, and notwithstanding the heavy expenditure we closed the books on 31st March with a substantial Credit Balance of £717,825. The result must be gratifying to both Houses and the country. A reference to the table attached shows the figures arrived at: —

Comparing the actual with the estimates of the revenue there was an excess under every head. The Custorps estimates was exceeded by £241,040, railways by £121,396, stamps £122,227, land and income tax by £58,209, various by £26,885, other heads by £28,318, j making the total £590,075 in excess of the j estimate. The following shows the details of 1 the Customs, estimates and actual receipts. The estimates were £7,801,000, the actual receipts £8,399,085, and the increase .£598,075. The actual sum spent was £7,774,926, or £652,586 more than the previous year. Of this the large increase of permanent charges was responsible for £108,063, principally caused by payments of interest on new loans and cost of increased payments for old age pension. With increase of revenue and increased expenditure may be looked for, and therefore it is not surprising to find that the departmental expenditure was in excess of that of the previous year by no less a sum than £484,473. Of this railways were answerable for £254,537, education required £88,032 post and telegraph service, extra, £40,459, grant exhibition £49,500, and maintenance of roads is now charged to the consolidated fund £25,860. The new sinking fund established for war defence loans absorbed nearly £40,000.

Charges authorised by permanent appropriations show, as compared with estimates, a saving of £12,828, while votes for departmental expenditure show £188,505, but as credit has been given railways for excess of revenue allowed by law, £121,396, the under spent amount on departmental votes may be stated to be £67,109. After charging £39,950 defence war loans sinking fund account we have a direct saving of £39,987 in the estimated expenditure for the year. The surplus of £788,795 from the previous year enables me to transfer from the revenue and public works the sum of £775,000, which reckoned at ol per cent, represents a saving to the state of £27,000 for the year for interest. The largest amount previously transferred to this account was £60,000. The results of the receipts for the year from all sources amounted to £8,478,966, the expenditure being £7,774,926, leaving a surplus for the year’s transactions of £704,030, which added to the amount (£13,795) left of the previous year’s balance and after the transfer to the public works fund of £775,000 gives us a balance at 31st March last of £717,825. The results of the transactions may be summarised thus : Receipts : Revenue £8,399,075, sinking fund accretions £660,000, other receipts £13,881 ; total, £8,478,856. Expenditure : Permanent charges £2,998,170, annual appropriations £4,736,806, sinking fund war defence loans £39,950; total £7,774,926.

Excess of receipts over expenditure, £704,030. Balance 31st March, 1906, £788,795. Transferred to Public Works Fund, £775,009, £13,795. Balance 31st March, 1907, £717,825.'

The expenditure on railway construction last year was no less than £919,684, and in addition £308,150 was expended for additions to open lines and £117,915 on railway duplication. The expansion of the traffic railways in all directions calls for a much larger expenditure on rolling stock. I may mention that in order to prevent excessive holdings and the aggregation of estates in land, and at the same time to leave a reasonable scope for the enterprise and energy of the settlers. Anxious consideration has been given to two matters of immense importance to the country —first the proper settlement of the Maori people so that they may become industrious citizens, second the utilisation of vast areas that, under Maori tennre, are unused and not likely to be used by the Maori. I am glad to say a hopeful prospect of utilising the lands to the common benefit of both races by providing sufficient farms for the Maoris themselves and to open large unoccupied areas for European settlement. Of land dealt with, viz., 526,977 acres, the Government recommend that 219,115 acres be reserved for Maori occupation and farming, that 497,561 acres be available for European settlers, and I anticipate that other large areas will be similarly available in the near future. The Maoris of various districts asked the Commissioner to visit them and confer with them to the settlement of their lands, and I anticipate that the labours of the Commissioner will go far to effect a solution of 1 the Native land question. I desire to state that of the nine million acres proposed to be reserved for endowment purposes they are distributed proportionately in each district as ' follows :—Auckland 900,000 acres, Hawke’s Bay 135,000, Taranaki 90,(00, Wellington 90,000, Nelson 1,350,000, Marlborough 450,000, Westland 1,035,000, Canterbury I,Bo' 0,000, Otago 2,250,000, Southland 9''0,000, total 9,000,000. TARIFF PROPOSALS.

The tea duty will ho fixed at 2d per pound upon packages containing up to fivo pounds weight. Provisions will be made for proposal of exemptions or remission of duties to come into operation on Ist November next. This I am satisfied will be recognised as fair treatment to those concerned. Last year in actual Customs revenue we received £252,040. In the proposals I am submitting I estimate that the reductions of Customs tariff will amount to £375,000, chiefly in tlio direction of reducing the cost of the necessaries of life and upon that class of wearing apparel that is largely used by the mass of tho people. Among the principal items are sugar, aurrants, figs, raisins, dates, unground spices and all articles of infant diet which are made entirely free. Cotton piece goods, dress prints and cotton tapestry, linseed and olive oil, and various other items are put on the free list. The duty on potatoes is altered from ail ad valorem one to £1 a ton. The in- j crease including general and preferential j amount to £121,000, tho difference between tho decreases and the increases is therefore . £254,000. The increases have been made I With the object of assisting the local industries and improving trade with the British Empire, i I propose, however, to renew the provisions of the Agricultural Implement Manufacture, ' Importation and Sale Act of 1906 for three , years in order to proven t tho unfair exploitation of New Zealand markets. Boots : An alteration has been made with the object of keeping out the cheap inferior qualities of boots ; children’s twots and shoes remain on free list. Flour: I am keenly alive to the desirability of enabling our people to got tho necessaries of life (and first among these bread) at tho lowest possible price. The question of removing the flour duty has been given anxious and lengthy consideration, and we have decided that tho removal of the duty would practically stop wheat-growing in New Zealand and leave us entirely dependent on Australia and other supplies. These are the most important items of the Statement.

1906-7 Increase. Customs £2,961,040 £243,629 Railways 2,621396 282,978 Stamps 1,365,727 164,464 Income Tax ... 277,867 16,051 Land Tax 447,342 61,586 Beer ... 107,582 9,447 Registration ... 119,445 11,232 Marine 40,S91 4,152 Miscellaneous 226,885 31,075 Totals £8,399,075 £814,716