THE BUDGET.

Taranaki Daily News, 27 November 1918, Page 6

THE BUDGET.

REVENUE OVER £20,000,000.

SURPLUS OF £5,085,634.

AUTHORITY TOR FURTHER LOANS ASKED FOB.

IMPORTANT PROPOSALS.

By Telegraph.—Pre« Association.

Wellington, Nov. 20. In the Houss last night the Finance Minister (Sir Joseph Ward) submitted the Budget, the main details of which are aa follows: REVENUE AND EXPENDITURE. '-he revenue and expenditure for the year 1917-18 ore as follows:

Revenue

£xpendlture

Revenue, £20,206,221; expenditure, £l242o^B7—9howing a surplus of £5,085,934—; add accumulated surplus at March 31, 1917. £6,474,854; total accumulated surplus, £11,500,788.

PUB lIC WORKS FUND.

A total amount of £1,141,172 has been spent on these services.

REDEMPTIONS AND RENEWALS.

Excluding ow liability to the Imperial Government for war expenditure, the total debt falling due during the year amounted to £3,363,356, and of this amount £3,212031 was renewed, £71,825 was redeemed with fundß borrowed from the Post Office, £2900 provided by departmental . r iuids, and £75,000 paid olf by the State Advances Office, leaving a balance of £I6OO.

CONVERSIONS.

The sum of £1,930,950 was converted into inscribed stock with twenty years' currency at 41 per cent, free of incometax.

LOANS FALLING DUE.

The loans falling due during the seven years ending with the year 1925 are as follow:

The percental coat of raising the respective loans issued in New Zealand is shown in the following table, comparing very favorably with the coat of raising loans issued before the war on the London mMjcet; Finance Act, 1915, £2,005,030, cost per f+nt. 5s OJd; Finance Act, 1910, £10,434/350, at 13s IOJd per cent.; War Purposes Loan Act, 1917, £23,170,[OOO, at 8s BJd per cent.

The following amounts were also raised from the General Post Office for local needs: Public Revenues Amendment Act, 1915, £2,090,000; Finance Act, 1910, £1,'37,900. COMPULSORY CONTRIBUTION TO WAR LOANS.

When the next war loan Is placed on the market subscribers will have the satisfaction of knowing that the financial shirker has been required to shoulder his .fair proportion of the responsibility of .the State.

CUSTOMS,

The amount realised was equal to a good average year's revenue—namely, £3,364,308 —being £434,308 in excess of the estimate. The total tonnage for 1917 was 1,055,780 tons, value £20,919,265, as against 1,538,755 tons, value £21,856,096, in 1914, and the amount of duty collected is therefore largely due to the 'great appreciation in the value of ad valorem goods. It is also due to thn increased preferential and other duties imposed since August, 19)7, by section 42 [of the Finance Act of that year. tta.

United Kingdom lias decreased from oli per cent, of the total in 1014 to 41 per cent, in 1817, and from the United States the increase was from 11J per cent, to 21J par cent. So long as space is available there is little doubt that drapery and soft-goods, boots and shoes, earthenware, hats and caps, millinery, hardware sundries, spirits, and tobacco will continue to come forward. The revenue for 1918-19 is estimated at £3,500,000.

The comparative figures showing the values of imports and exports for the financial years 1915-10, 1910-17 and 191718 are as under, the invoice value plus 10 per cent, bjing the basis of value for ad valorem a<d primage duty, and thetrue landed cost being probably 20 per cent, in advance of the figures shown for imports, owing to the tremendous freights at present ruling;

Imuoria. Exports, 1915-16 rj P.- 22,9*17,437 33,781,711 1910-17 rA . 26,162,700 30,538,466 1317-18 :£ ; r .. 20,983,012 31,298,270 BEER DUTY. The amount realised was r £237,075. The quantity of beer brewed during 191718 was 189,000 gallons less than during 1916-17, the average rate per gallon being 5.875 d.

Estimate fo.; nest year is '£225,000, and the excise duty that amount. The estimated Customs revenue for 1918-19 is £3,732,000, made up of: Customs revenue, £3,500,000; beer duty, £225,000; bonded-warehouse duty, tim-ber-export duty and other receipts, £7OOO. LAND AND INCOME TAX, The net receipts in this department for the past year amounted to £7,005,269, viz., land-tax £1,385,708, income-tax £5,019,561, an increase of £2,030,025, of which land-tat provided £672,590 and income-tax, £1,357,435. MENTAL HOSPITALS. Tho total net expenditure on mental hospitals was £164,680, an increase of £20,131 over the previous year.

PRISONS DEPARTMENT.

Tha estimated value of prison labor employed on various works over and above the each returns wa3 £18,239, and the value of tho labor employed in carrying on prison industries, farming, eta., amounted to a further £9,939. The actual value to the State of prison labor in 1917-43 pas therefore £43,26 i.

POST AND TELEGRAPH DEPART'

MKNT,

Tto amount of revenue collected by tho Department during the year was £1,50t,255. This includes the war-tax on postal matter and telegrams. The Post Office Savings-bank business has easily exceeded the record for any previous year. The total deposits amounted to £17,100,529, and the withdrawals to £14,401,109, The excess of deposits was thus £2.G40,360. This result has been achieved notwithstanding tha withdrawal of £2,000,000 for investment in the war loan. The balance remaining at credit of depositors at the close of 1917 was £29,190,390. Tha money-order and postal-note business shows a slight decrease, t'l-.e total issues for the year amounting to £4,120,626, acd the amount paid out to £3,762,077. The sales of war-loan certificates by the Post Office have now reached £3,922,219, and in addition to this a considerable proportion of the money subscribed by th-3 general public to t'ae war loans has come in through the agency of this Department.

STAMP DEPARTMENT.

The revenue for the year sliows tlie substantial increase of £192,979, tie gross revenue being £1,902,077. Death dratiee have again shown a large increase of '£Boo,ooo.

TOTALIZATOR

The revenue received was £213,£'32, Z3 against £207,430 for 1910-17.

AMUSEMENT-TAX.

Tho amount received for live months was £16,273. LAND FOB, SOLDIERS.

Satisfactory progress is being made with the settlement of discharged soldiers on the land, and members of tha Expeditionary Force are taking advantage of the facilities afforded them for acquiring holdings. Eighteen settlements were purchased from private owners during the year ended 31st March, 191S, of these, thirteen have been subdivided and opened for selection. Other suitable !ar.d:i, both Crown and settlement, have also bees made available for selection. The total area formally proclaimed under tfee Discharged Soldiers Settlement Act, 1915, up to the 31st March, 191S, was 394,219 acres. A considerable number of discharged men are availing themselves of the benefits provided by sections 2 and 3 of the Discharged Soldiers Settlement Act, 1917. It i 3 anticipated that the scheme for settling discharged soldiers will Ik quite successful notwithstanding the fact that gTeat initial difficulties will have to be encountered owing to the prevailing high prices for fencing and building material. Owing to the large increase in the number of applications received it is imperative that the amount authorised to be raised under the provisions of the Discharged SoldieTs Settlement Act—namely, £soo,ooo—be increased to £l,500.00,

The advances made to 423 soldiers towards the improvement of their lands, etc., was £144,27' i, and repayments on account of principal sums were £9,380, the balance remaining on mortgage being £134,804. The advancer, authorised to 068 soldiers amounted to £190,911.

AGRICULTURE, INDUSTRIES, AND COMMERCE.

The outstanding features of the pa-st year's operations were the maintenance, in spite of war difficulties, of a higftu standard of production, both as regards quantity and quality, combined with a continuation of remunerative prices. Large quantities of exportable produce have accumulated in store owing to insufficient shipping-space, and this necessitates careful consideration of future arrangements. The number of sheep and lambs slaughtered wan less than for the previous year, but t'his was due to the later season, ajid the deficiency 'was maxle up by the end of June last, The arrangements for the purchase of our wool, meat, butter, cheese, and other produce on behalf of t'he Imperial Government provide a guarantee tliat the Dominion may confidently expect a. i continuance of prosperity throughout the year. In view of the necessity for increasing production every effort is being made to organize a system under which advice and information, in ihis.diiectiott wiUi.be

HYDRO-ELECTRIC SUPPLY.

The success of the Lake Coleridge hvdro-clectrb scheme lias been sufficiently demonstrated to enable the country to recognise that we are justified in utilising to the fullest possible extent tho enormous forces that our waterpowers possess, and wiiicfc are at present running -to waste. It is therefore proposed that without any avoidable delay this great power should be made available in various parts of the Dominion. £150,000 will be provided this year to enable a start to be made in the Wellington and Auckland Provinces, and in addition to this the House will be asked to put on the statute-book legislation to give local bodies throughout tho Dominion the necessary power to establish hydro-electric schemes in their several districts. The Bill to be submitted to honorable members will contain full powers for resumption by the State, and, in addition to providing for t'he two water-power schemes in the North Island, it will enable those districts that possess the necessary water forces to have them harnessed up for the use of the,people.

SCHOOL BUILDINGS. ifri view of the pressing necessity for new school buildings, additions to school buildings, etc., an increase of the Public Works vote by £300,000 will be provided. This amount will, I hope, be sufficient for the purpose indicated, aud, at all events, it will not be possible to spend more than that sum during the financial year. u-TJTUEE TAXATION,

There is no necessity this year to inI crease itio burden of taxation for the purpose of meeting the immediate requirements of the country. Tho great increase in our national debt, the increased cost of administration in the various services of tho Government, the mecdssity for providing war pensions, etc., will, of course, make it impossible for me .it the present time to suggest any reduction in the existing rates of taxation, and it is, moreover, not possible to speak with any certainty as regards the future, as till ere as so many problems which will require attention after the war has finally concluded, and these con only be determined when it is known how the trade and finance of the Dominion will bo influenced by the after-effects of iihe war Judging, 'however, from present indications and from information obtained during my recent visit to England, I do.not think I can be accused of being unduly optimistic if I say that the prosperity of the country is not likely to be adversely affected after the war, and that in consequence it will be then possible, by a review of our whole financial position, to reduce in some measure the lisavy taxation which necessity has forced upon the country, and which has been so cheerfully borne by the taxpayers. The vital importance of reducing taxation and cliargcs in some branches of t'hc public service, where we can legitimately do so, must commend itself to every one, including those in the ranks of the workers as well as those who are employers of labor. All classes of the community are vitally concerned in furthering the advancement of ou» country after the war troubles have completely ceased, and it ia essential to t'iie welfare of th* Dominion that agricultural, industrial, commercial, and social life shou'd be promoted and worked under the freest conditions possible.

FUTURE OBLIGATIONS.

I desire to impress upon Honorable members the magnitude of the additional expenditure to which the Treasury would he committed if the pressure that is being brought to bear on the Government from various parte of the Dominion were to be acceded to.

Tlie Government is urged to nndertako extensive water-power schemes throughout the Dominion at an estimated expenditure of over £G,000,000. A demand for additional education requirements, amounting Lo £3,000,000 for new buildings, etc., has been made from various quarters. Such amounts arc entirely beyond the capacity of the country to provide at present. The interest and sinking-fund charges on war loans amount annually to, say, £3,300,000. Increased pay and war bonus to officers of tha Government service, in addition to the ordinary increases due to tha classification—say, £1,000,000. Balance of tlio authorisation for railway improvement, £2,667,000. The above services alone would represent an additional expenditure of £15,967,000 in round figures, and when we consider that these items are in addition to other 'heavy burdens which the country is shouldering in connection with the war, and that I have made no mention of the annually recurring expenditure such as for public works, I feel sure that honorable members will fully recognise the difficulties and com]ile?.,ities of future finance if all tfhese serviess are to be provided for. I feel it my duty to utter an emphatic note of warning that it is imperative that honorable members and the public should exercise a restraining influence until the country knows what its full wax responsibilities are, and these can only be ascertained after peace has been signed, and our citizen soldiers have returned to t'lie Dominion, and demobilisation lias been fully completed.

ESTIMATES OP REVENUE OF 1918-19

I now proceed to give an estimate of revenue for the year IiHS-19, under the main heads of each oJ the important

The foregoing estimate is £21,021 be■low t'he receipts of last year.

STATE ADVANCES OFFICE,

' There lias been no change in the lending operations of this important Department of the State. A considerable sum of money has during the year been advanced to local authorities, settlers, and workers.

The advances to settlers amounted to £17,007,400; advances to workers £3,473,250; advances to local- aoithori-.-ties £2,009,290; total £24,0^0,000.

MUNITIONS AND SUPPLIES,

■During the past year t'his Department, has been concerned, in activities connected •with the purchase of military supplies, the control of coal-distribu-jtion, and seuring priority permits. wtftwtesfoßrjhe -SWife flli

high-quality •uniform clothing, woollen goods, and boots were arranged on a satisfactory basis.

During the year large quantities of foodstuffs have been purchased for the training-camps, and suitable provision ■lias been made to meet future requirements. The value of orders placed in this connection was £243,400.

DEFENCE DEPARTMENT,

Tha war expenditure for the year ended 31st March, 1918, amounted to £18,754,845.

INVESTMENT IN IMPERIAL WAR LOAN,

Before leaving London, I arranged to invest a further sum of £1,500,000 of .Dominion funds in the March Imperial war loan. The total amount of Dominion funds invested in London as a,t 30th September was £17,809,912. This amount is inclusive of the ordinary revenue reserve to which I have already alluded. I wisli to point out the great financial strength the investment of this large sum gives to the Dominion. There will certainly be great financial readjustments in the near future. During the financial year 1917-18 £870,100 was borrowed, mainly from the Post Office, and at tfto 3ht March last the unexhausted authority for borrowing stood at £725,000. In order that the expenditure on necessary works may bo continued it will be necessary to ask the House for additional authority for £2,500j000. Of this amount £280,000 will bo required for telegraph eiftension, £300,000 for school buildings, and £ 150,000 for hydro-electric schemes.

1918 1917 • ■» '' £ £ Customs T^v.7-7,, 3,364,308 3,849,675 Stamp & death duties 1,892,014 1,699,035 Post and telegraph ., 1,836,256 1,815,558 Land-tax . , 1,385,708 713,118 Income-taz 5,619,501 4,202,126 Beer duty 237,075 187,953 Railways 4,668,223 4,836,275 Registration &, other fees ,, 101,249 i08,044 Marine ■ 38,053 43,742 Miscellaneous 718,437 518,063 Territorial .. .,,205,043 215,787 Rational endowment revenue ... - ..... 100,493 85,971 Other receipts 39,201 32,200 Totals 20,200,22118,367,547

1913 1017 £ & Permanent Appropa.— Civil List 27,674 27 5 473 Interest and Sinking fund . . 4,430,779 4,014,792 Under special Acts : 621,258 988,301 Subsidies paid to Local Authorities 139,213 120,710 Territorial Revenue 48,831 52,033 Endowments .. , 164,543 165,237 Old-age Pensions .r 612,464 453,085 Widows' Pensions 57,931 37,918 Military Pensions 50,733 45,634 War Pensions 515,384 180,166 6,668,810 6,095,355

Annual Approp.i.— Legislative Depts. 41,797 3-1,939 Depts. of Finance . 132,886 106,722 Post and Telagraph Depts 1,487,145 J,368,490 Working RIya. Dept. 3,007,658 2,871,977 Public Bldgs, Domains & Maintan-

anco of Roads 99,353 84,939 Native Dept. 24,242 24,191 Justice Dept. .-r- ., 485,428 459,914 Dcpt 26,913 23^78 Dept. of Internal Affairs ...c., 529,868 474,965 Defence Dept. 428,112 438,656 Customs, Marine & Inspection of Machinery Depta. 163,394 iC9,S05 Dept. of Labar 30.746 32,725 Dept. of Lands & Survey . ... 192,769 192,992 Dept. of Agriculture, Industrie & Commerce . ... 224,565 216,897 Education Dept. .. . 1^11,256 1,406,264 Services not provided for ; . ». . 5,785 41,601 '"%L 8,451,477 7,963,415 • Totals 15.120,287 14,058,770

1919 .< v. £1,705,805 1920 .,> !,.• £3,767,345 1G21 T. t i£10,105,457 1922 .. £0,361,890 1923 T.- ... £8,222,950 1924 n [£2,260,300 1925 •••' r*f ,£552,992

Departments:-- £ CUR-OTllS v.v. t-.v.vVY 3,51)0,000 Railways v.. 4.72:1,000 Stamp and death duties ,w 1,837,000 Postal and telegraph. .... '•-1 » 1,900,000 Land -md income tax ...... ..... 0,050,00!) Beer duty 223,000 Registration and other fees 101, boo Amusement-tax - • #v 35,000 Marine 37,SOO Misoellaneows 1)00,000 Territorial revenue ...... vr*' ICR,C00 Endowment revenue 05,800 Other receipts >,.... .■,7..v.. 10,000 ! £20,185.200'