THE PUBLIC ACCOUNTS.

Taranaki Daily News, Volume LII, Issue 117, 15 June 1909, Page 2

THE PUBLIC ACCOUNTS.

STATEMENT BY THE PIIEMIKU. UOVJiIINMENT'S PROPOSALS. LOAN OF .C1,250,(JU1) TO BE RAISED. By Telegraph—Press Association Wellington, Last Xig.il. The Premier, as Minister lor i'iuaucc, delivered a statement ill the House ot Representatives last evening, showing tile position of the pubiie. accounts on | Mafeh 31st, 1000, and the requirements to October 14th, l'JOil. lie said:— "As-Parliament will shortly prorogue and the usual linancial statement will not be delivered until it reassembles, honorable members are, no doubt, desirous that J should place before Uiem an outline of the position of the finances of the Dominion. Dealing first with the past year, the results of which liav-; ill-! ready been made public by the publication'of public accounts in the Ouzettc, as required by law, it may not be out of place to make a >ew comments on them for the information of hou. members.

THE'REVENUE. Tlie revenue for the financial year was estimated nt t'8,985,000, and Lie expenditure at £8,878,340, the anticipated surplus, after bringing forward a balance uf £707,849 from the previous year and transferring £800,030 to public worns, being £74,503. An analysis ui tin; ngurea shows the actual surplus for the year to be £184,321, or £109,818 mure than was 'anticipated. The surplus, of the previous year was .17(17,84(1, but for the pwposcs'of comparison tlieru must be taken into consideration tile increased expenditure and tile relinquished revenue, which were foreseen and allowed for in the Budget of last year. The recurring large surplus year after year caused the Government 1" make concessions in Customs, railways, etc., amounting to about 0109,000, and in I view uf those reductions it could not be expected that such large credit balances [ would continue.

The revenue for the past year amounted to £9,001,185, an increase of £10,185 over mv estimate, the respective ainoiinti being:' Estimate, £8,085.1100; actual, £0,001,185; excess, t11i,185.

Comparing the revenue with that of the previous year the:,; ;u uaiy a uiilerence uf £54*701 on the total receipts, the figures being: H'oß-9, £i),0U1,185; 1007-8, £9,055,940; a decrease of £54,701. The revenue for the year exceeded the expenditure by the iiiui 01 £2li),Gi2, made up as follows: Revenue, £0,001,185; expenditure, £8,785,513; excess revenue, £215,072.

Dealing with the various heads of revenue, railways contributed £2,918,507,

as against an estimate of £2,835,000, and an actual receipt of £2,705,395 in 1007-S, the receipts being better than the estimate by £83,507, an increase o"i the previous year of £153,112. The railway returns keep up remarkably well, as it must be borne in mind that reduction ill fares and freights has been set down at £100,5110 per annum. Stamps last year brought in C 1,501,328, or £lß.32B'bctter than the estimate, an increase of. £40,394 on the previous year of , 11',550,934. The returns from the Land and income Tax reached nearly £,920,000, the exact figures being: Land tax £004,901. In-come-tax £321,044—t0tal £925,945. or £40,(145 in excess of the esi,,iai tf .did £183,194 better than that of IHO7-J!. Miscellaneous revenue is responsible for bettering the estimate liv C 25,210, the amount received being 1:204,210, as against the estimate of £230,000, and 1M5,808 in excess of the previous year's receipts. Registration and other fees show an increase on the estimate of £2OOI. and marine brought in £3815 more than antieipilted. I THE CUSTOMS REVENUE,

which, 1 may say, has occasioned me more anxiety than any other class of revenue, did not come up to estimate by £148,752, the tutal amount collected for the year being £2,801,248, as against the estimate of £2,950,000. this was due to the large falling off in import values for the yvar 1907, as compared with steady increase for sonic years previously, the figures for tile last three years being: 1007, £15,323,127; 1908, £18,193,808; 1909, £10,750,005. This falling-oil' is, no doubt, in sympathy with the decrease in the value of exports (noiv, 1 am glad to say, showing an improving tendency), which for the same three vears we're: 1007, £10,531,014; 1908, £17,808,030; 1909, £17,020,031. Another contributing factor is that owing to tlie financial disturbances in the commercial world New Zealand merchants have reduced their imports and traded on their existing stocks. Moreover, the. abnormal increase in importations during 1908, in anticipation of tne coining into operation of the extended preferential tarill', which took effect from March 31st of that year, led |oo .an accumulation uf large 'stocks which hud to bo cleared oil', These 'special causes for reduction in the Customs revenue are. however, temporary. itIUUHTEIt TRADk'pUOSPW.'TS.

Traders arc already reporting considerably increased business, and I am of opinion that importations will assume niueii larger volume without anything in the miture of over-importing, wiiicli lroni every point of view is not desirable. .•. feel justified in say.„ tf this l'roii, iJr fact iliat we have hud one of the tii-m seasons known in the history of .\ew Zealand. Tile result of this 'is demonstrated by reference to exports, which for lli t . live months ended -May illst, ]<JI)B, amounted to only £8,71.1,591, us compared with £10,030,Ni3 for the corresponding period of 11)00, an increase of £;1,81(i,572. This shows a largely increased purchasing power, which 'must favorably affect our imports. Tile decrease in duty is mainly apparent on articles of general merchandise liable to ad valorem duties. Those articles which may lie regarded as luxuries, such as spirits, cigars, cigarettes, to-1 liareu, wine, ale and' beer show little dill'civncc. There is also another indication of a 'decided improvement in tile liimncial outlook, the excess of deposit in Hie Tost Office, havings Hank over withdrawals for the month of May of .004,115. ■

I lliere was a slight falling oil' ii, beer duty, lliere was also a drop under the territorial revenue of £13,143. Revenue receipts for the past five years have been as follow: 1904-5, £7,282.870; 11)05(i, £7,384,350) IDOG-7, £8.39!1,0;.-, ; 11J0/-8 £J),(155,!)4U; 1908-9, £9,001,185. It must be remembered in comparing the figures of the financial year just ended with the previous year tnat the. revenue has been cut down a good deal within the past two ~cars by liie remission of Customs-duties, raifway concessions, abolition of sheep tax and transfer of Crown lands as national endowment; but, notwithstanding these abatement,;, the revenue for the yeaY just closed is £IIOO,OOO better than for the vear 19110-7. The total increase during the laM three years is £1,410.820. KXPEXJIfTCUK. The expenditure of the consolidated fund mus't be next considered. The amount, estimated' for the year was £8,878,340, to which should'be added i the railway surplus revenue 01 £S,'l,;iu/, which, by the Publk „cmllH's Act, is treated as an additional appropriation. The actual expenditure was £8,785,513, or a saving on the votes of £171i,340| the utmost economy haviip. been exercised during the year in order to keep expenditure within the votes. Had it not been for the surplus railway revcuw tj;e unexpended appropriations would have been £9ji,833. The expenditure was 'as follows: Amount estimated: Permanent charges, £3,210,343; annual appropriations, £5,008.(1(13; additional appropriations for railways, £,83.507—t0ta1, 18.11(11,833. Amount expended: Permanent charges,| £3,2lo,o3o;'ahmuil appropriations, £S, 575,453-total, £8,785,513. Saving "oil appropriations,, £17(1,340. On the expenditure side of the year there is an excess over the preceding year of £571,548. Of this amount our interest charges arc responsible for £71.(100, and old age pensions ti1.500. The issue of debentures for the construction iif railways, for winding and iinnrnv. ing our Crown lands, and lor grants in local authorities necessitate* an increase of interest payments. The post and telegraph services have absorbed nearly £|H)0,(IOO more than the previous vear': : working railways, £157,000; lauds and ' survey. lOO.lloil. Kducatioii required C2li,()0(l. The cost of the general elec- ' tion (including the printing and preparation of rolls) was £44,000; licensing polls. £.12.800; defence, £111.000: public buildings, £20,(100; agriculture, ('20,1100; police services. £12.000; and industries and commerce. £1(1,000.

A SATISFACTORY KKATT.'ItK of the vear-'s transactions Is Ilia I t'HIIO.Illll) was transferred from the rovc-iiic ill aid of public works. Tile floating debt of the Dominion was reduced during the year by the redemption of Treasury bills to the extent. „f CIMMMIO. The'amount left outstanding at ••list .Marc], was t'2.lo,(mi), mi less than .C-4.")0,t)0(l having been mill oil' during die hint tlii-uu years. 'l-'ln'.v had iiractically become a permanent debt, but the (lovernment determined to graduallv reduce the amount. GENERAL RESULTS .of the year's finance amy be summarised! rs {ollWßi ;... . ' . ;.l

IJnhince brought forward at Ist April,' i(li!8, l/71ii,54!1. I Receipts during lac year, UI,OIILOSS. I ( ) Expenditure during tile year: Appro-i priiilions, £5,755,513. J _ Excess of receipt* over expenditure, C2!1i,472. Transfer to public works fund, £BOO,0110. Balance at 31st March, 1 !>()!>, £184,321. IT her: WOIiKS. During the year a sum of C 2,109,278 lias been expended, on public works, as against tJ 1 ,KS]..">U4 spent in the previous year. The principal items of cxpemli- ( tore.were: bailway construction, C 713, -: 'J (Kill; addition to open lines, £390,000; ;li roads, 1409,000; public buildings, C 285,-1 J 000; telegraph extension, tl(i3,000. I 1 The position of the public works fund i on the :/lst Ikuch was as follows: ' 1 Balance from last year, £152,503. lte- ' ceipts, loan money (i.ieluding premium), : .£1,004,094; transfer from revenue, f«00,000; other receipts, .CKilO—total, I £2,405,704; grand total, .€2,358,2117. Expenditure, under appropriations, etc. £2,109,278; other charges, £s2Bo—total, £'2,174,558. Balance at 31st March, 11)011, £383,709. Available public works money to start the current year with, £43.),709. RENEWALS. Tlie amount which fell due during the past year was £3,133,238. The greater portion was renewed for a longer term, and the result of the renewals ia iuat the interest charges are reduced. LOANS. * In addition to authorities already in force Parliament lust year authorised the raising of £1,250,000 for public; works, and £1,0110,000 for the acquisition of tlie Wellington and Mamiwatu railway. Nearly the whole of this money was raised in London on favorable terms, our brokers having made necessary arrangements for placing these loans m.n a ' minimum of cost to the Dominion. Other moneys were obtained for advances to settlers,' land for settlements, for ' loans to local authorities ami other ser- ' vices. ! GOVERNMENT LOANS TO LOCAL . BODIES. Applications from local authorities - for loans have been much larger than i usual, consequent, no doubt, on tile <1 ill'j- ■ culty uf obtaining money at a n'asiniible ~ mile of interest .elsewhere. The diebentures for the amount authorised by f law, nnnlelv £250,000 per annum, were . created anil issued dumg the year, of i which £102.130 was paid over m loans • to local bodies and £54,713 for roads -1 to open up Crown lands, d LAND FOR SETTLEMENT.

During the year £372,245 has been spent in the- acquirement of estates. There was outstanding at 31st March available borrowing power of £410,050, which, with the' £500,000 authorised for this year, gives us power to raise £910,,050 for the acquirement of land for settlement if necessary. ADVANCES TO SETTLERS AND

WORKERS. The sum of £1,493,835 12s has been expended in advances to settlers and f'9B 184 (is in adviim-vs to workers, a: oross' total of £1,792,019 !8s actually paid out during the year. This is a record for the department, the increase (in the previous year being £.*10,02n. The figures show that there Ims been n continuous increase in the number o applicants for advances. Tlie oliice will do its utmost to meet requirements "t borrowers with the funds at its disposal. The amount of advances actually paid over each month of the year shows that the full average has been maintained throughout. . Over £5.000.000 has -been raised b\ the Government for investment on mort..„.re to 31st March. 1909, for advances iYscltlei-s ami nearly £500,000 for advances to workers.' There is still atttiliorilv to raise, on behalf of the advances to .'eltlers C 841.200, being the balance of »ix millions authorised by the Act, which, with annual repayments from mortgagors, will enable the Department 'to make further advances during the .present year to the extent of £1,500.000. There is also authority under the' Act to borrow £500,000 for advances to workers during the current | linam-iiil year, and this I propose to do. I am sura it will both help workers to get 'homes for themselves and give a considerable amount of employment ia the building trade throughout the dominion. PROVISION FOR RECESS,

The Public Revenues Act provides for carrying on to 30th .lone. After that date no payments can be made for any service until further provision is made. It is therefore necessary to provide for the carrying on of. public services till Parliament 'meets again, and I propose to ask the House to extend the provisions of-the Public Revenue Act to 14th Octoiber next. The Act contains the safeguard that no payment dial I he made for any service other than those for "which provision was made ill the r-espeetive Appropriation Acts and Estimates of the .preceding year or in excess of wale therein set forth. Authority to increase the amount spent under tlie head of "ii;iiiiitiliori«eii expenditure" will also he asked for, as It has been

found that -with rcstvirtiv-c provisions of the Act the amount allowed is insulnVicnf, AH spell expenditure, as well as that under the extemW appropriations, is required by law to he included in the Estimates laid .before Parliament in the next s'ession. f estimate the cash issues out of the

ordinary revenue, account for the period Ist April to 14th October, at .14,(100,000. To meet this, I anticipate revenue receipts to the amount of £3,000,000. In so c-tiinntnig. I feel 1 it desirable to keep on the safe side, which, with the cash balance at credit on Ist April, 1!)0!), 1:387,103, will give a total available ways and means of £4,284,000, or £312,837 less, than I estimate the expediting for that period. This will be met by the temporary issue of Treasury bitlsywliich I hope to ,pay oft before the. end of the

(inancial year, us the incoming revenue will permit, the largest portion of which comes in during the last six months of the year. The reductions' in public expenditure to the amount of about £2,)0.000 per annum should assist to ensure an equilibrium between, •expenditure mid

revenue, and 1 hope that the pres'ent reduction of revenue will be fully ■provided for.

PIIOPOSF.D U>AX OF £1.250.000. to the Public Works *'iiml, tTic balance on 31st March, lliqil (including the advances in the iluinds of (ioveru" incut officers and loan money to receive) was £433,700, an amount Insufficient to carry on our public works lievond the present month. I therefore propose to ask Parliament for authoritv to .-aisc £1.250,000. to be expended in reproductive works. This will enable the Covcrniiienl to iprovide employment over the winter of those men at pres'ent out of work who are willing to accept same.

To enable the cipiipmcnl of our lines of railways to lie more efficient, £250, 000 is included in the C1.250.0H0 loan as the iiirri'ii-iiiL' calls for lurllicr roll"l: s,l "' li 1 'ln' equipping of lines requires this ainounl. I am also including in dire amount of the loan a-licd for a -urn ot 1:1110.111111 t„ ,1 x,pended in the purclias,. of unlive hinds, as' it is desirable, in the interests of the people. 10 secure these lauds. The funds for duplication of lines are practically exhausted, and as It is' desirable to'push 011 with til.,, necessary works already authorised, additional lionwm.- lmwe'r >•( L7.-.,lli)l) will be asked for. s 0 far as the oth,.,- separate accounts are concerned, there a re sufficient, ways and means to carry 0,1 with. AI'TTIOKITY R)l! THK U) \X CItAXTKI). The House went into committer lo consider the raising of „ mini „„) „ quarter loan, and reported that provision be made as requested. The House adjourned at 1(1.55 till 11.30 10-morrow.