FINANCIAL STATEMENT.

Taranaki Daily News, Volume L, Issue 60, 17 July 1907, Page 3

FINANCIAL STATEMENT.

A BUOYANT POSITION. IMPORTANT POLICY PROPOSALS. HEAVY REMISSIONS IN TAXATION CONCESSIONS AMOUNTING TO £300,000. CHEAPER MONEY TO LOCAL BODIES. SHEEP TAX TO BE AIiOLISHED. Wellington, July hi. In the House, in Committee of Supply, the Colonial Treasurer, the Hon. Sir .1. 0. Ward, P.C.. K.C.M.0., submitted the Financial Statement {or the year ended Slut March last, inter alia, as follows: The revenue has surpassed that of any previous year, and, notwithstanding the heavy expenditure, we closed our bocks on the 31st March last with a substan tial credit balance of £717,825.

REVENUE. The revenue was the highest on record. amounting to £8,309,095, and compared with the revenue of the previous year. shows an increase of £814; 111, or a little over 10 per cent. The principal increases were in Railways, £282,978; Customs, £243,829; Stamps, £164.464: Land and Income Tax, £77,637; Miscellaneous, £3l/173; and other receipt.-. £24,822. The Territorial *reveuue was lew by £9,889. The table presented will show how these figures are arrived •ti-

1900-7 1905-8 Customs £2,941,040 £-2,097,411 Increase, £243.(129. Railways 2,621,306 2.338,418 Increase, £282,978. Stamps 1,365,727 1,201.26.1 Increase, £164,464. Land Tax 447,342 385,756 Increase, £81,588. Income Tax .. .. 277,867 261,816 Increase, £16,051. Beer duty 107,582 98,133 j Registration and

other fees .... 119,445 108*2 Increase, £11523. Marine 40,891 30,739 Increase, £41,152. Mhweluvneon*. . .. 226385 195,810 » Increase, £31,073. JTer. Revenue .... 250,908 2C0.759 F Decrease, £9,881). I Totals £8309,075 £7,584,359 fir Total increase £814,716 r Comparing the actual with the estima- { ted revenue, there was an excess under J every head. The Customs Estimate was •weeded by £241,040, Railways l>v £120,396, Stamps by £122,227, La'nd and Income Tax by £58579, miscellaneous by £28£85, other heads br £28,319, nuking a total of £598,075 in excess of the estimate.

A certain amount of thi3 increase must he attributed to the International Exhibition, particularly that relating to revenne derived from railways, Customs, and stamps, but at the same time we must not overlook the fact that the general prosperity of the country is mainly responsible for the results. EXPENDITURE.

The expenditure last year also was necessarily high, the total sum spent being *7,774.026, or £652386 more than the previous year. Of this large increase the -permanent charges are responsible for £128,062, principally caused by the payment of interest on new loans, and the costs of increased payments to Old Age Pensioners. Departmental expenditare was in excess of the previous year by no less a sum than £484,573. " Of thi* amount, the railways were answerskit for £264,537, education required £88,032, post and telegraph service cost •B extra £40,450. grant to Exhibition £48,500; and the maintenance to roads, new charged to Consolidated Fund, £25,860; and the new Sinking Fund established for War and Defence Loans abutted nearly £40,000. Comparing the actual expenditure for the year with the amount appropriated, we are abl» to ■bow a saving of £161,383.

The sum of £775.000 was transferred from surplus brought forward, to the Public Works account, which, if reckoned at i% per cent, represents a saving to the State of £27,000 per annum for interest The largest unit previously transferred on this account wag £600,000.

SURPLUS. The receipts for the year from all sources amounted to £8,478,950, the e\jwodJtdre being £7.774,926, leaving a surplus on the year's transactions of £704,430, which, added to the amount of £13,785 left from the previous year's balance after the transfer to Public Work* Fund of £775,000. leaves us a balance on the 31st March last of £717,85.

The results of the transactions ni:-y be summarised thus:— Receipts.— Revenue: £8,399,075: Sinking Fund accretions, £06,000; other rc«lpta, total, £8,478,930. Expenditure: Permanent charge, £2.W8470; annual appropriation, £t.7:«i,«4S; SKnklig Fund (War and Defence lout), £K,830; total, £7.774,9-211. Excess of receipts over expenditure, £HHfi3DBalance 31st March. 1900. £755.79. _ >. Transferred to Public Works Fund, *775j000. Balance 3lst March. 1907, £717,825. TREASURY BILLS.

In accordance with • promise made in last year's Budget, £150,000 of the outstanding Treasury Bills have been paid off, thus reducing our floating loan from £7«M»O to £660,000. These bills have been ren*«crl from year to year, and had practically become a permanent debt, and this is the first step taken towards clearing them. The proposal made {■last year's Budget of establishing new fi%K»g Funds in respect of certain loans has been given effect to, £39,950, representing 1 per cent on £3.995.000, the amount of loans raised for war and defence porposeß, and £50,165 at a like late on the amount borrowed for the purpose of acquiring lands for close settlement, have been paid over to the Publk Trustee, and by him invc-ted in securities returning I per cent, interest.

PUBLIC WORKS FUND. The balance brought forward to commence the year with was £492,299. The fund was augmented by receipts consisting of loan moneys £1,125,086, premiums received on sales and renewals of debentures £15,834, transfer from Consolidated Fnad revenue £775,000. other receipts £1560, making a total of £2,410,378. On the other hand the ordinary expenditure was £2.040,319, charges and expenses in respect of loans amounted to 210,650; total expenditure, £1,050,Mf, Varmg a balance in the fund at the close of the year of £359,400, which, with the balance of the 1906 loan. £SC,400 to receive, gave available ways and means of £415,800 to start the current year with.

THE PUBLIC WORKS DKIST. Tbe gross public debt On the SI si ( March fast was £04.179.(M0, as atrainst £82,191,010 at the close of the previous year, or an increase of £l,oSß.miO for the y«ir. Of the million loan authori-ed but session for public works, t'.U.1.600 was received during; the the balance, £50,400, already placed, will eorae to credit during this year. For the pur chase of lands for clow settlement, debentures to the amount of £530.040 were tamed under "The Land for Settlements Consolidation Act, 1000," and 505,9*5 under The Maori Land* Settlement Act, 1005," for the acquisition of land* from Maori owner-. To enable pantto be made to local authorities CI 80.000 had to be borrowed, and Cl"i«i.«K) wa* obtained to meet the requirements of the Advances to Settlers office, and £•0,000 to carry out the provisions of the Advances to Workers' Act A further sum of £19,000 for scenery preservation waa provided, and £66.000. representing debentures for accretion to pinking funds, were disposed of. The sum Of jesaWJfto fell due during the year. W tab amount £1,648.486 wart renewed. 4SKLWO converted ai par, £261.800 paid off, and £3l£oo remained outstanding. the debentures not having been pre Mnled. LOANS TO LOCAL BODIK*. , The balance at credit of the l.wn? to Local Bodies' Account on the 31H Mar -h. IMS. was C 784. Debentures for CISO.I 000 were created, r.ud issued durin-.' th." ' past year, and refunds of rjnc.pcnded i balances of orrants, amounting to CfiU. I -were received. Payment" on accounts of f ban* were made dnrintr the venr to !n<-Yl f bodies, £133.620. and toward-, owninw , . W> Mocks of 'and for scttl«mcnt fB'.S"! leavfne at the end of li-t vcar a h-«lanc» . of €»>7 to the credit ~f Ihe acr-o-mt. »«.' Of (he tot.ii summit of 10.-1 1,. r<f- &' . «*iV« t ß vr.T«.d to »l„, M P..1,i-„.rv ■-.=♦ R-- tn» follow!".' fi<nir»s w'll «h- v th-fefe-'/,aniointts nnd ntes at whih h.-n- .- •'■ Toans at 3 ner <vnt.. I'f-W.: WjKgwVlM «♦ «''■ ner i»nt.. CI.061.1.": I o»r €*On.2ofl: r>t V, percent.. C'O! E.' 3,fKt total*. £22*7.1 W. 'I - v<gtyMaU of half-yearly la.->Uluieul->

ofinscribed debts continue, to be punctually paid. THE EXHIBITION". The total expenditure in connection with the. Exhibition amounted to about £200,000, of which £75,000 was paid from the Consolidated Fund. €15,000 has already been repaid, so that the cost at present stands in round figures at £00.500, but there will be a further reduction upon this amount from sales n«v in the course of prosecution. THE BRITISH XAVY. The agreement between New Zealand and the British Government has over six years to run. Xo proposal has been made l>y the Government to in any way change the present agreement, nor is there any disposition to do so. When it is known what the Commonwealth proposals are. it may lie necessary for n* to enter iuto a fresh agreement with the British Government in which case we shall be willing to increase on contributions to £IOO,OOO a year. MINING. The mining outlook is of a very hopeful character. The export of gold for I!MK> was the highest for a period of 3,i years, whilst the output of coal shows a considerable increase over that of the preceding year, and is about double what It was ten years ago. The increase in the value of our mineral products for the past year amounts to nearlv a quarter of a million sterling. LOCAL GOVERNMENT.

A comprehensive measure for the consolidation and general amendment of locaf government law will be introduced.

but having regard to the magnitude and important of the subject, and the many other matters which must be dealt witli, j 1 do not anticipate that the Bill will pass this session. It will, however, be circulated, so that its provisions may be fully considered by all parties affected, and 1 hope Parliament will next session put this important legislation on the Statute Book. In cases where amendments of the existing law are urgently needed, you will be asked to make them.

LABOR. The administration of the Industrial, Conciliation, and Arbitration Act has disclosed certain defects, which should be remedied. These lie chieliy in the delays which have often practically defeated the main object oi this legislation. These delays have been due partly to the long intervals between the hearing by the Arbitration Court of disputes, but. mainly to the unnecessary and vcrv often vexations api«eals made from" the Conciliation Buatd itself. The troubles that have arisen regarding the half-ho.i-day in shops and factories will be removed. Bills to meet these points will be introduced.

INFANT LIFE. Recent information which lias reached ine shows the need of further protect-' iug iuiant me from the neglect so often found in connection with the treatment of children. Legislation will be brought down providing safeguards which experience has shown to be necessary.

CUINESE. Neither here nor elsewhere has the poll tax succeeded in preventing the immigration of Chinese, for reasons that need not be discussed. The money is a.ways to be found to pay the amount of the tax, and to enable a certain number of Chinese to come in. It is very necessary, in the best interests of the European inhabitants of this country, that further restrictions should be imposed. Experience has shown that the more effective and justifiable check is by rueaus of a high educational test This, it is hoped, with the present poll tax continued, will have the effect of both reducing the numbre and raising the standard of this class of immigrants. Legislation on these lines will be introduced. CIVIL SERVICE CLASSIFICATION AND SUPERANNUATION. i

The Railway and the Post and Telegraph are already classified, and superannuation funds exists in connection with the departments of railway and police. The results have been advantageous both to the State and the officers concerned. The officers work with better spirit, and, consequently, more efficiently. The Government arc satisfied that the same advantages will follow from an extension of the system to the Public Service generally, and the Bills will be introduced for that purpose. The classification scheme will, in some case*, involve a slight increase of salaries, and, moreover, it is intended to supplement the officers' contribution to the superannuation fund by a grant of public money. This year £30,000 will be asked for this purpose, and I am satisfied that Parliament will readily approve it. Classification by statute is'neeessarily inelastic, and this is accentuated by the steady expansion of the departments concerned. In the case of the Post and Telegraph, various modifications have Wn made from time to time by Act. but further alterations are required to meet future cases. It is proposed that statutory authority be given to the fiovemor to modify by Order-in-Council the statutory classification list of any department, the order being subject to the approval of both Houses by resolution. A return showing the name 9 and salaries of the Civil Servants of the colony is being prepared, for laying on the table of the House before the Estimates are considered.

NATIONAL ANNUITIES. Last year's Bill will be introduced again, and will contain provision for voluntary contributions to a fund for tha establishment of annuities. LOANS TO LOCAL BODIES. It is only right that people in several districts who have shown a disposition by local taxation to help themselves, should have an advantage over those who have relied entirely upon Government assistance for carrying on local works. To meet this position preference will be given iu proportion to the amount of rate levied by local bodies, and legislation providing a scale to meet this will be submitted to Pariament. ROADING BACKBLOCKS. Settlement of new lanaVhas been so extensive as to render it impossible to provide access to the wliole of it as quickly as is desirable. It is hoped that the reading will before long overtake the needs of settlement.

TELEPHONES TO OUTLYING LOCALITIES. By the vigorous prosecution of the work of construe) ing telephone lines to isolated parts of the country, the department has enabled to open for public business no le-s than Hit telephone olliees during the year. It is anticipated that the number for VM't will at least be equal to this.

DAIRYIXG. The first essentials to excellence and purity of dairy produce is strict cleanli- ] ness in the byres, and the highest degree of freedom from disease in stock. These objects can be effected only by increased inspection, and for this purpose it is projiost'd to pav £BOOO per annum out of the Consolidated Fund. RAILWAY cnNSTIUtT'.'tX. Full detail:, of the Government's railway works and proposals will be given in the Public- Works Statement, which will be s U i, m i tt ..,[ j :l t el - on q' nt , r .,i|. heads at northern and southern ends of the Main Trunk liife are now within 2S miles of each other, and the intervening gap is bridged.ly a good coach service, so that the through journey between Auckland and Wellington by this route is already quite practicable. There is now. therefore, every promise of completion of this great national mi-

dertakimr by the end of IWS lieeomin;.' en iuroiiipli-hnl fa.-t. Tl:o section of tlie Midland Line lietwecu I'.iokeu ltivcr and the Cass is now ill hand, and tcn-

ders for the 'shiel viaduct over Shiver's Creek have reeeir.ly been aeccpted. Tenders for the Arth-ir Pass tunnel eontrcct have 1.-e<-ii r.-.five.l. and the Oovernineiit after full eon-ideration. have accepted the low-t tender of .1. MeT.etn and Son for the sum of C.iflOJSl. so that the important work of coßiicetinfr the East and M'est Coast railway should be completed in five years. The expenditure 011 railways co'istrur-tio;] last year amounted (.. 'no than Ctiin.liSl. and, in addilicu to th:-. t;:ws.l.*»'> was expended on ? iditfon- lo open I''.!---, and £117.915 on ■nilways dunlicition works. tI'EDUTiriX IX POST.MSL -\XD 'i'KI.Kfin.vMS. y The inarked ,:eccss of the reductions in po-tr,<_v ;.nd tel.orani rates dnrlnpr tl.( l-.st few j,-ar- -.errant- further eoiiees--i-.n-. I th.-reiorr pr..p..s-. to make the foil-win" T.-ilu.-ii,,,-,. in r To reduce ,!,e r ,.-r;,,-.. on in' ~•,; p,, |,,,r,l- f,.,m Id to >:<!: to i.-.lmcp ii,,. fe.. for rc.;is|errrl I'tr-r- fr-.ni 3.1 to 2.1; (-, further ,-,.,!,,,-e th> i-.land htl-r p.. -ta- -. ihe ■'..r eoh iv.--> nun- 1!,.-:-,..f|. ;,-!e:id ! ! ! tor c:i-!i foul em:- ;■■. -, . ...-at: '■: r.-dii-'t- :'.o p.,-t-...- - f n.-.-.j;,/i.-.. . to '-! I.r .. -,1.i. ills', id of Id for ~;._,;„ ,:r' -. "!!ii- .oi f ..--io:i. it is hoped, wi'l '-• a y. ...t e...:\,n:ei].e t-.i country re.si,dcnt-. l.in the (■:',■ grc.\th side, it h iu-

tended to abolish at country places the iff of live guineas jiev mmum ;il present [charged for telephoning telegrams to the nearest telegraph olliee, and in the principal towns to reduce the same fee to £l. Later on I hope 10 abolish the charge altogether. The rates for commission on money orders and postal notes will 1>« substantially reduced. It is estimated that the reduction in the

whole will mean a concession to the pubic of about £20,000, but, afler making due allowance for the increased business likely to result therefrom, 1 estimate the loss to the Department for the three months from the Ist .lamiary to the 31st March next will not exceed ' t.'lHftl). The reduction of the post-card rate will be made a few days before Christmas, and the other concessions will come into force on the Ist January next.

KICDITTIOX OF INTEREST TO LOCAL

BODIES. _ During the crisis which took place a few years ago, it became necessary to raise the rate of interest at which" the Government borrowed, and tins neces-si-

tated an increase in the rates on loans granted to local bodies. 1 think the. time has arrived when the latter rates should be readjusted. These local bodies do a great deal to promote settlement and thereby porforn a ve.ry useful iune'i.;ii in the gcneial work of Government, la order to I'urtlioi assist them, i propose from the Ist of February i.ext to reduce

the rate of intere.t on existing a.id ;,;• lure loans by a half per cent., but not making it lower than S'.i. per cent., the. I lowest rate at which we obtain nionev for lending to local bodies. SHEEP TAX ABOLITION.

This lax was imposcu m the year 1577 for a specilie purpose—tor iu.spcaii.g sheep with the view to the eradication ,uf tin: then wide.y-sprcad disease, scab, ilappiiy, the flocks oi Uns country are now entirely lice aom lias trouble, and 'lie cause lor the tax Juviug disappeared, the reason for its continuation no longer exists. Moreover, cattle, horses, and

pigs entail more expenditure for the eradication of diseases peculiar to them than sheep ever did, ami yet there is no tax imposed in respect lo this cuss of stock. The amount collected under the sheep tax is barely £200,000 a year, and t propose tc ask Parliament u repeal it altogether.

CUSTOMS. The complexity of the existing Customs tariff has lung been a cause oi complaint t'ruiu merchants and trouble to the Dspaumer.t. A bill to simplify it will he introduced, and the Government intend to propose re-adjusuucius and re missions which will facilitate trading operations, assist industries, and, lasf, but not least, sensibly lighten the cost oi many food articles iu general cousuihptiou.

Tli total remissions of duty will amount to about £375,000. TEA.

The intention of Parliament has been evaded, and quantities of packet teas made slightlj over the weight, have eon setjuently been admitted free of duty. As packing can be done most satisfactorily in New Zealand, the duty will be iixed at 2d per pound upon packets containing up to olbs weight, and this should effectually prevent the evasion that has been practised. As a matter of fairness to tin holder of duty-paid stock, provision will bo made for the proposed cxcnipliim or remission of duty to come into operaliou on the Ist November next.

REDUCTION OF DUTY. Last year the actual Customs revenue received was £2,941,040. In the proposals 1 am n,iu submitting 1 estimate that the reductions of the Customs tariff amount to £375,0011. This, it must be admitted, will lie a very heavy reduction, and will be found on examination to be chiefly in the direction of reducing the cost of the necessaries of life, a.nd upon that class of wearing apparel that is largely used by the mass of the people. Among the principal items are sugar, currants and raisins, figs, dates, unbound spices, and all articles of infant diet, which are made free; cotton, piece pood?, dress prints, and cotton tapestry, linseed, olive oil, and various other items are put on the free list; the duty on potatoes is altered from an ad valorem one to £1 a 'on, fixed so that the .noraaly of the higher the price the greater the duty will he removed to prevent unfair exploitation of the New Zealand markets. The increases, including general and preferential, amount (o £121.000; the difference between the decreases and increase;. U therefore £254,000. The increases have been made with the objects of assisting local industries, and improving trade within' Hie British Empire. In this riuiiiectioii, 1 may state, that tiie .lute <m agricultural nu;iim>'n and implements upon which (.lie products of the soil are m iargely dependent, is not increased. I promise, however, to renew the provisions of the Agricultural Implement Manufacture Importation and Sale Act, liHKt, for three years.

Au alteration has been made with l.lu oliject of keeping out cheap and inferior qualities of 1<0..! i ihal have been im ported, and with this object a sweiiic duty per pair, in addition to an ad valorem rate is proposed, hut tile cost of those Iwots chicliy used by the majority of people will not be greater than at present, as this has been' met in the tariff. Children's boots and shoes remain on the free list. FLOUR.

I am keenly alive as to the desirability of enacting our people to get the necessaries of life ut the lowest possible price. The question of removing the Hour duty has been given the most anxious and lengthy consideration. The removal of the duty would practically stop wheatgrowing in New Zealand and leave ub entirely dependent upon youth Australia or other supplies. The removal of the Hour duty would, it is believed sripplc eu-iy flour mill in New Zealand. We would then be exposed to fto'u importers, who could, witho'Jt diiiiculty, elleci corners, as his frequently been dc-iit ia Aijierica. \''o :avuct lightly make a change which will crush an important local industry like this without direct injury to many individual. The duty on Hour is one shilling per 100 pounds. Its removal would, if th? whole benefit of the remission wer> given to I lie. consumer, enable him to buy ino 4lh "oh' %& cheaper tbau at present. If this could be se.-nrcd. it would be a great achievement, but experience too often pioves that the full benelits of such remission are transferred to the customers, and as the bakers do not deal -i

farthings, no ieduction in (lie price of bread would result, unless the bakers gave up tin- halfpenny per loaf, which is the whole benefit of the remission. If upon the tcry close and thorough inquiry I am now making, I am satisfied that the present price of bread is due to any monopolistic ring or combination, the Government will not hesitate to introduce legislation this'-year to defeat such combination, a'ui secure to our coii-

sinnors tin's necessary article of diet at a fair competitive price, ami with th.' n-pon-iliilitv licit i.iv po.-ilioii -nlaus. ! would i„.:,re-s i.pon'ilie flutini.illerK of fie .-011111 iy thai. 111 io.ir interests, they .-iioiil.! rcn;o\c any cause thai e\i-ts foi the present position. KT-x U'lVicrrv. When ia l.eiuli-n recc ntly, the Piiint Minister of C-maila expressed himsfdf favorable to the establishment of a. retiliroeal treaty between Canada, and Ncv Zealand. Negotiations with li'is objer. in view are procecd'nio. 1 propose to a.-lc the limine io oive power hi vary Ihe du lies, either on the diit.ab'e o- irei "/.am: li-t, between Xrw Calami ■in-. laitisl, count lie-, wilii whom le.-iprocal treaties may b- •■nl.-r.,; inf,,. ;;m ii recipioeal trcnlics ledoj! ailci-v.i.ils subject to raiilicalion by Parliament I-TS'AXX'I. ill-' TIIK <TI!!!ENT YEAIi. lieveiiue; 'l'uniiiiL. now to our ways and 11, ca- for ih-.-'eiirrent year. 1 have, a;'t"i' .-!,,■..,- m e..H.,..icri!io:i. estimated 'i.'i ihe mMi.'.ery revenue i.-.-.Vo. proper will amouiit to ..S.aiiO.linii. or CiWI.-'V" h-s-i than ia t yea:-. I h.-ve di emed it prudent to Miiiiewha.t disroimt our ordiivi'v receipt- from railway-. Ca-loms. and slaiiii.s. -,vh;:-ii were benefited last ■•ear by the Kxhibilioii. Moreover, ,-u----.■ouiit must be taken of (hi: large concessions t have already referred to, and which which wb propose to make under the previous h<">.K

[ h-'v -et down our revenur- b. be derive.l: from (if toms as CI "0e "Oil, or CIII.IKI loss than lasl year; l<ailw.ivs should reach l'2.. r w(i,0IIO. ..r ,t;"I,3!«> lcs; while Stamps should yield Cl.:m».'«iO. or ,£2S./27 less, lieer duty -■h.uihl return £103.01111, or .C 2.552 less"; i-eoistration and oth.r fees .t27,445 lens, and inisc-.-'lam-ous will be short of last ..-■l'-; r,»eints by C'l.SSa. (Jji the olhor

: ; :u,l. I anticipate that, with (lie pro-no-ed bci.,,-.e in the new stylo.'land (ax •••.•ill prodiK- c.'.i.-i.iiiki. and income tax iJ2Sn.nini. a :,v,il of CV!l."i,fl0(l. or £"?!!,■ 7:U more th.;.. la-.| year. Territorial re'ime is set down-as £2.-,!i.1|.10. or ColOl'l I botl.r ;!ian the pr;-\ious vear. while uianne i- especl-d 1... yield £|nn more. Mlotioiable members will nut ice 011 refer-

ring to the estimated revenue table, that 1 have not on this occasion set down any [amount to be derived from the issue of debentures against accretions of sinking funds, having decided to forego any aid from this source in future, so that members of the opposite side will not be able to say that our surpluses are aided by receipts from loan moneys.

EXPENDITURE: The estimated expenditure out of the ordinary revenue ior ) the present year upon all services is set down at £7,087,347, or £212,422 more than the actual expenditure of last year. Of this increase, permanent charges are responsible for £40,957, of which interest and sinking fund absorbs £17,717, and Old Age Pensions £22,000. Nearly all classes show an increase as compared with last year, but when you take into consideration the. steady growth of oui population, and the, requirements of the people, it must be expected that, our expenditure will increase. 'The demand for increased postal and telegraph facilities necessitates an additional £BO,OOO being asked for. Education services require an additional 17.0,000, defence £31,000, and the Lends and Survey Department £2O, 000. On the other hand, there is a reduction in the amount asked for by the Colonial Secretary's Department of £BO,000. The Railway Department is satisfied with CIO.OOO less than was expended last voir.

ESTIMATED RESULTS FOR CUHI REST YEAR. On the 31st March next, estimated re- | venue, £8.200,000; estimated expenditure. U7.087,347; excess of revenue over expenditure, £212,053. Add balance from last year, £717,825; total, £1130,478. From this amount, I propose to transfer £700,000 to the Public Works Fund, and set aside £30.000 for the Civil Service Superannuation Fund, and then leave a balance of £200,478, from which, of course, provision will have to be made fur (lie usual supplementary estimates.

PUBLIC WORKS. The balance of the 31st March last, as already stated, was £359,460. To this may bo added £50,400, balance of'the million loan authorised last session. I propose to aid the fund by transferring from the Consolidated Fund £700,000 of tiie surplus of last year, thus making the total available for ways and means £1,115.00(1. This amount, however, is insufficient to-meet our requirements, and 1 therefore propose asking Parliament for a further loan. As it will be necessary to provide for expenditure after the close of the year till Parliament, 1 shall ask for one lnilion. It is not intended to place the loan on the London market. I have every reason to believe that the greater part of the money we require can be obtained in our own country, keeping the interest among our people. CONCLUSION.

It may be convenient if I focus the chief fiscal and other financial concessions I have placed before hon. members. The remissions of taxation are: Customs, £375,000; sheep tax, £20,000; rates of interest to local bodies, £0000; post and tcclgraph rates, .020,000; fees inspection dairies, £8000; total,, £420,000. IncreaseS:Cusloms, £121.000; Land and Income lax, £70,000; total, £191,000. I can assure hon. members that I am iiot losing sight of the necessity of maintaining a strong finance. The concessions are justified by the steady prosperity of XV\v Zealand, a prosperity which has a broad, solid base in the great advantages of the colony, and the energy and skill which these advantages are being developed by our people. My endeavor has been to place everything plainly and to avoid everything in the shape "of an overestimate. Matters of the greatest importance are contained In the proposals T have submitted, and I feel persuaded that, if given effect to, they will add to the general comfort of the masses of our people, and will assist in the speedy and satisfactory settlement of the land, and will give relief in every home. Substantial concessions have been made upon the duties on the necessaries of life, as the result of which New Zea-'' land will be in the happy position of having a reality of a free breakfast table. It is (lie aim of the Government to promote in every legitimate way the advancement of the country, and the happiness of the people. Uenec these proposals and T submit them in the. confident assurance that Parliament will give effect to them.