BUOYANT FINANCE.
tjominion'S strong position. a surplus 01* £4,250,000. accumulated surplus £10,750,000 invested in imperial securiTIES, £5,725,817. The Minister for Finance (the Right Hon. Sir J. G. Ward) made a highly important and interesting statement With regard to the finances of the country, in the House of Representatives on Monday afternoon, showing that the surplus on the year's working would total some 4J millions.
REVENUE RETURNS. ■ "All the vouchers are not yet in from all parts of the,country (said the Minister) ; consequently tho figures I am placing before tho House are only approximate and subject to readjustment, but they may be taken as giving a fair statement of the financial position of the Dominion. The returns of revenue, as compared with those for the year which ended o n March Ist, 1917, are as follow: Year Year ended ended March 31, March 31, 1918. 1917. £ £ Customs 3,361,380 3,849,675 Stamp and death duties 1,863,592 1,699,053 Postal and Telegraph .... 1,830.594 1,815,558 Land tax ... ; 1,384,194 713,118 Income tax *vr-.-v.- 5,610,719 4,262,126 Beer duty ..■...-.■■••.-.-.■ 237.075 187,953 Railways ......... 4,575,465 4,836,275 Registration and other fees.. 92,3141 108,044 Marine .v.-.j 37,311 43,742 Miscellaneous -.v.-.-., 653.929 518,003 Territorials .• 199,7»5 215,787 National Endow- . ment revenue .., 100,493 85,971 Other receipts 24,030 32,200 20.000,918 18,367,547 Total increase . 1,633,371 STATEMENT OF EXPENDITURE. "From those figures it will be seen that the revenue for 1917-18 shows the substantial increase of £1,033,371 over the previous year, and those increases are largely due to the increased direct taxation imposed by last year's legislation. That will he particularly noticed! in regard to income tax,and land tax. Thero was a very large increase in income tax, and alao a considerable increase in land tax- In the ordinary revenue account the expenditures out of appropriations for the year compiled as at April Bth, compared with the corresponding period for 1317, are as follows. Again I want to remind houmembers that all these figures are incomplete and will be subject to variation later:—• Year ended Year ended 31-3-18 31-3-17 (Incomplete) . £1 £ Permanent charges:— Civil list 24,634 27,465 Interest and sinking fund 4,403,224 4,014,792 Under special Acta r.....r.... 2,003,720 2,053,098
6,431,573 6,095,355 Annual appropriations: Legislative 41,105 34,039 finance ,129,722 106,722 Post & Telegraph 1.210,445 1,368,490 Railways,. 2,996,411 2,871,977 Public buildings, etc. ........... 87,500 . 94,939 Native .....,.;.......! 22.231 24,191 Justice r.......... 435,173 459,914 Mines ........... 26,324 28,278 Internal Affairs 521,822 474,965 Defence 403,414 438,650 Customs and Marine 153,829 109,865 Labor 29,459 32,725 Lands and survey 193,050 192,992 Agriculture 54,227 216.897 Education , 1,540,718 1,400,264 Services not iprovided for ~..., 4,142 41,001
7,885,038 7,203,415 Totals ........, 14,317,216 14,058,770 Total decrease 404,901 Balance April 1 6,474,854 2,106,077 Receipts 30,080,918 18,367,547 26,475,772 20,533,624 . Less expenditure 14,317,210 14,058,770 Balance on March 31 ..., 30,158,556 6,474,854 As follows:—> Casb, 1,905J597 2,298,043 Advances outstanding .... 1,464.142 259,038 Investments .. 8,728,817 3,017,731 12,158,556 6,474,554 A VERY LARGE INCREASE. "From the figures I have given to the House it will bo seen that there is a very large increase in tne expenditure as compared/with the previous year. The charges for interest and sinking fund and the increases in the railway and education expenditure are chiefly responsible for the increases 1 have just named. A comparison of the reveu; with the expenditure shows that, if we include in the expenditure the whole sum unaccounted for by the iingrestces, there will be approximately a surplus oi 4i millions for the past year. (Hear, hear). The amount of the imprest, which hon. members will see is large, is entered under the heading of "advances outstanding," and amounts to £L464,000. The imprests both here and in the Old Country are much larger than ordinarily. Members will recognise that until the accounting of the imprests is brought much closer up to exact figures for the 12 months cannot he given, but I am right in saying that approximately the figures I am giving the House can be taken as a very fair indication as to what the position will be when we have the whole of the figures in. There must be fluctuations one way or the other, but the surplus, approximately,, for the past year is four and a quarter million sterling."
An lion, member: "Too much war expenses?" Sir Joseph Ward: "It fia ;no ijirect hearing on the point */ j moment. Thnt is all kept sr account, and payments out of/'cslnto fuai*."
THE ACCUMULATED SURPLUS
"Membera will recollect that the total accumulated surplus at the end of the year 1916-17 amounted to £6,474,854, so that the total accumulated surplus at the end of 1917-18 is approximately 10% million sterling. (Hear, hear). Out or this accumulation of profits we have invested in London in Imperial Government securities at the present -momeii. a sum of £8,728,817. (Hear, hear). 1 want to call the attention of the iiousi to the fact that this investment of out surplus moneys with the Imperial <: vern merit is in my opinion a sound and desirable thing to do. They have made advances in the Old Country from time to time for which they have accepted the stock of this country an payment, b. cause we could not go on the market there; and they accepted our stock, authorised, of course, by Parliament from tho beginning, amounting probably to something like nineteen millions sterling, perhaps more. When the Motherland is under such a heavy financial strain it is our duty to give assistance in this way, wliile retaining the money for our own requirements at the end of the war. It is desirable that we should give the Mother Country relief by thu« investing this surplus. (Hear, liear)It certainly helps the Mother Country in connection with the gigantic finances which she requires for carrying on the general purpose of the war." (Hear, hear).
An lion, member: "Carrying on for one day!" Sir Joseph Ward: "Yea, for one day, but it is a help, and a considerable belp, and the principle involved is a good one. It is the proper spirit.(Hear, hear). In that respect we have done probably what no other country has done, and it i.right ttiat we should do it. (Hear, hear). A VERY 'STRONG- RESERVE.
"Members will see that in having accumulated a surplus of 10% millions sterling we hold a very strong reserve. We will hold at least that reserve at the end of the war, and I hope it will be increased still further aa the war goes on, leaving it available for any purpose that the Government may decide. My own opinion is that it s'bould be for th reduction of the expenditure which wc have incurred for war purposes, or in connection with the permanent sinking fund, so as to allow the reserve to accumulate. There is great strength in having 10% million sterling of reserve out of our surplus in this country. It thero was any great alteration in th financial and industrial, or what I c;al! the internal, condition of this country, we should be in the position of having securities in London which would be of very material assistance in helping to maintain a strong position after the war was over.
INCREASING DEBT CHARGES. "So I think I am right in saying that the result of the year's operations is most satisfactory, though I feel it to be my duty to warn the House and t' l people that tho charges for interest and sinking fund will eventually assume very large proportions hy comparison with the increase I am now indicating to the House. These charges will now commence to increase pretty rapidly. So far tho increase has been fragmentary if I may use the term. Thero has been but a slow process of addition for anything like a long period, because after all the war is hut three and a half years' old, and only a proportion of the permanent annual charges has as yet been brought to account. But as the year comes round it will grow larger, and we shall appreciably feel the increased burden of interest and sinking fund for the war loans.
WAR EXPENDITURE, '£41,000,000. "I want to say one word now in connection with tlie war expenses account, and here I would remark that my colleague, the Minister of Defence, will make, I understand, a statement before the House rises,-and it will necessarily be one in more detail- I deal with the question of the total war expenditure as it affects the finances of the country. The account shows that since the war commenced, until April Bth, tfhe total amount actually raised for war purposes, but not yet wholly expended, amounted to £46,304,5G0. Of that amount £172,470 was subscribed gratuitously by the people of New/ Zealand. The total amount of expenditure for war purposes during the same period, inclusive of imprest advances in the hands of imprestees, amounts to £40.930,697. 1 said the other day it was approximately forty-one millions, and here, I think it right to say that if there should he any difference between the figures of_ th Treasury and the Defence Department, I want hon. members to recollect that the Treasury only deals with amounts that actually have come to charge in the Treasury, and includes the cost of raising the loans and. also imprests in the hands of imprestees. As is the ease with the railways, you find sometimes a difference between the figures of the Treasury and the railways; but you may accept my assurance that in actuality both sides of figures are correct and can bo reconciled if necessan There are also some arrears of payment due to the Imperial Government for the maintenance of our troops, but they will soon be cleared up out of the .authority that has been given by the House for raising auother £20,000,000 loan. They will in all probability be cleared by the acceptance of New Zc;i land stock by the British Government for the amount which the Government has incurred in England. Mr. Witty; "Could you give the approximate amount?"
Sir Joseph Ward: "1 could not give that at the moment because I do not know it exactly, and it is better not to give figures that may prove even not approximately correct. It depends on things not under the control of the Government at this end at all."
PUBLIC WORKS FUNDS. "Now, I want to give the position of the Public Works Fund. The policy of the Government has necessarily required to bo a cautious one in regard to public works expenditure, but notwithstanding the reduced activities of the department owing to war conditions there has been a total expenditure during the twelve months amounting to £1.274,0-12, including sums in the hands •of imprestees. The figures, compiled up to April 8, are as follows:
RECEPITS. Balance'at beginning of year—Cash in public account, £315,913; imprests outstanding" in Dominion, £3143, in London £2461); /> investni ent. account, £200,000 ; total, \0 && Recoveries o> *" \ of < { i .»'' '"" J previous 256' jtf >i _ Keipts in connection with ,£he iuiii Fsraj&%s
and Akaroa railway trust account, £1595. Debentures issued under;— Finance Act, 1916, sections 49, £700,000; Finance Act, 1916, section 77, £125,000; Aid to Public Works and Land Settlement Act, 1914, £45,100; total, £1,436 - 478. ...".. EXPENDITURE.Under appropriations, £970,881; Ellesmere Land Drainage Act, 1905, section 6, sub-section 1, £439. Balance" at end of year—Cash .in the public account, £161,534; imprests outstanding in the Dominion, £303,642; total, £1,486.470.
SURPLUS LARGER THAN ESTIMATED.
"1 do not want to say anything more about the financial position except this: That Jion. members will see, if they refer to the Budget, that the surplus is a larger one than I estimated when submitting the Budget. It will be found that the revenue receipts are approximately two millions greater than I indicated we were likely to receive, and it will he found that the expenditure is not far away from the' amount I indicated. I want to erophasjse again now that during the times through which we are passing I consider it is my duty as Finance Minister to keep the estimates in this country down to as low an amount as is prudent so as to provide for any fluctuation which may take place during the course of the financial year. That will be done again for the succeeding year, "because circumstances, which are' stronger than men and stronger than Parliaments, might occur which might greatly affect receipts in the Treasury. I call attention to it only to say that I am not making any excuse or apology for the estimate being considerably beyond my forecast, as I was deliberately cutting tlie amount down ./or fear of eventualities. I felt it was the only course for me to follow in the circumstances. I would call attention to the fact that a surplus of 4J millions at this juncture is encouraging to the whole of us and to the country, and it is a sour< of satisfaction to us to know that we are not in the position of other countries—which I need not name—which have notbeenso fortunate as to be in such a strong financial position at the end of the financial year as we are. The outline of the position which I have given is intended to take the place of tho Budget, which would hjve come down in tj ordinary session- It is an interim statement made, as I have already said, approximately, but is a fair account of what tlie position is. I sincerely hope that the circumstances of this *country during the coming financial year may be as satisfactory from the point of view of enabling the country to pay its way anil maintain a strong position to the end of the war."
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Taranaki Daily News, 18 April 1918, Page 7
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2,263BUOYANT FINANCE. Taranaki Daily News, 18 April 1918, Page 7
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