DOMINION FINANCES.

Taranaki Daily News, Volume LVII, Issue 12, 2 June 1914, Page 7

DOMINION FINANCES.

STATEMENT BY TIIE MINISTER. Speaking in tlite smith, Hon. Mr. Allen sand: Regarding the remarks made by the Leader of ithc Opposition about the memorandum accompanying ./the prospectus for the New Zealand lean*, the speaker said -that it was not his purpose when in London to draw the attention of (the 'London financiers to the fact that New Zealand, rip till the time lie had come into office, luul car* ried out the evil practice of selling land and addling tho capital proceeds to the ordinary revenue. Whilst that practice continued tho surpluses were unsoftnil. As a matttor of fact ho had little or nothing to do with the memorandum accompanying tta prospectus regarding the loan. It was prepared at the High Commissioner's. Office, and the speaker let it go. Nor was it his purpose to draw the attention of the London fmanciievs to the fact that New Zealand had built buildings out of capital, and wiheu.tlicy were burnt down replaced it hem out of capital. That .was added to the surjiius- of previous years, and that had now 'been reformed. "I. do not know," -said Mr. Allen, "why the Leader of the Opposition should try to coupe] me to' advertise iliiis unsound finance."

The surplus of the year if the ca-h land sales had been .included would have been greater. I have also to draw attention to -the fact that we paid out of revenue a small loan of £11,400. 1 have already alluded to 'the smallpox, the strike, and 'tlie decrease of railway revenue due Ito- the strike. The increased expenditure was very largely due to the increase in interest and sinking

fund amounting to £171,000. There lias been an all-round increase in pen-ions of £32,000, and those of it-he public w'tvo are interested in the o3d mititary irai-doncr* will -be pleased t-o know that the present Government has made provision for them involving a total of £211,445. I may with pardonable pride allude to the very nvucilv stronger position financially of the Public Works Fund. At the beginning of the year 1912-13 <he balance of the fund was oni'.y £82,580; In ithe year 1913-14 the balance, after the deduction of £249.770 for f' H> redemption of debentures, was £370,905. At the beginning of the year 1914-15 the Public Works Account had a balance of £1,178,584. During it-lie year there has been an increase in 'the expenditure on public works over tilie previous' year of £43,208. This was largely owing to the increased, telegraph extension 1 , the increase there being £141,011(1. I note -that ifclie Leader rf itlie Opposition has been criticising tille expenditure on public buildings. We inherited a large responsibility from his Government for public buildings, but I am pleased to be able to sav 'that during the year there was a decrease in the expenditure on them of £75,542. I have nnotliler announcement to

ma&c which will be pleai-ing to the country generally and even to the Leader of the Opposition and "Mr. l!u--sell. The finances are sr* stnuHr that I am able to announce, that t'l.'e Board has been able to, increase the anio-uul thalt may be lent to the settlers for the redemption mortgages on free-holds-from £SOO to £750, an ! that ;t has al;o been able to ini-rease t,:Se. amount that may be lent to counties from £IO.OOO to £15,000. and to townand smaller boroughs from £5()IKI