FINANCIAL STATEMENT.

Temuka Leader, Issue 1655, 3 November 1887, Page 2

FINANCIAL STATEMENT.

The Hon, Major Atkinson delivered the Financial Statement on Tuesday evening. After o few preliminary remarks ho said ;

THE DEFICIT,

as given by the l»te Colonial Treasurer for the ye»r 1886-87 was £92,293, but if we omit from revenue two considerable items which will not recur this year, namely the surplus of £37)859, with which the year 1886-87 began, and the windfall of £104,749 of released sinking fund, we shall find that what I have called the recurrent revenue fell abort of the expenditure by £234,910. Bearing this fact in mind, bon. members will be better able to understand how the late Government, after making all the redactions in expenditure they thought possible and expedient, were constrained to propose no lees a sum than a quarter of a million of luxation over that of the year endiug the 31st March last. On the 31st March last the Land Fund was in debt £54,263 ; so that if to the £92,293 we add, as we should, this £54,263, the deficit of the Consolidated Fund at the close of the year, which had to be provided for, including the Land Fund, was £146,536, and as a matter or fact, it is included in the deficiency bills outstanding. I shall now proceed to state to the Committee what would be the probable deficit of .the Consolidated Fund account at the close of the present year on the two-fold supposition ; firstly, that the expenditure continues at the rates prevailing when the present Government took office, and, secondly, that no additional taxation is imposed.

CONSOLIDATED FUND EXPENDITURE. (Ordinary Revenue Account for Year 1887-88.)

The estimates for (ho current financial : yeu, as laid before Parliament by the late 1 Government, having been re-qoosidefed in the light’ of gif months’ actual exr 1 perience, it appears the probable expenditure fcr current year would amount to £4,138,395, as against the total of £4,088,804 appearing in the estimates of the late Government. The revenue proper received for the sis nionths ending on JjOlh September last was £1,510,863. This was £16,844 less than v» s received during the same period of the financial year 1885 36. The Customs yielded $29,446 less, the railways £18,434 more tfian fho preyioqs yesr. this must be added the proceeds of the dobem tures, amounting to £258,184, issued last April under the Consolidated Stock Act 1884, on account of the Sinking Fund to accrue during the financial year 1887-88, but I do not add the proceeds of deficiency bills sold, because the object is to show what the probable deficit will be at the end o| the year, fi'fie total receipts were, there: fore, explosive of the proceeds of deficiency bills, £1,769,047? In estimating the revenue for the remainder of the financial year, I do so upon the assumption that taxation, including the Property Tax, is not altered from last year. I may remind hon. members that no Property Tax has been collected, the annual Bill not having beep passed? With regard to other items of revenue, I fiaya the estimate of our predecessors, except as regards Stamps and .Railways. The experience ©f the past six months ’eads to the probability that Stamps will not reach the estimate by £32,600, and Railways by £SQ,OQO. Taking these circumstances fhto consideration I estimate that the revenue for f;he pix months ending Jtl s t March, 1888, will amount to £2,019,460, making a total of £3.788,507 for the year, as against £4,156,184, as estimated by the late Colonial Treasurer, which included the proposed additional taxation. The revised estimates of expenditure being as I have stnfod £4,118,395, and jihe revenue being £3,788,507, the expenditure will exceed the revenue by £329,888 on the ordinary rqyenue account, and if we add excessive expenditure of Land Fijpd, £59,417, we get a total' of £389,306. T* e late Government proposed to meet the deficit they anticipated on the Ordinary Revenue account, by additional taxation amounting to £250, and by a percentage ipduciiou of £29,000 frpm salaries. THE PUBLIC DEBT. The gross public debt at 31st March, 1884, as set forth on that t-ible, was £31,071,582, exclusive of £398,000 for ■ deficiency bills. At March, 1887, it «vas £35,751,653, exclusive of dtfiuieacy i bills for £2?9,1Q0 then outstanding! Since i that date further deficiency bills’ to the ]

amount of £715,900 have been issued, the total of these now outstanding being £995,000, in addition to debentures for £258,184 issued in A pril last for increases of Sinking Fund for current year. The amount at 31st March, 1884, in th a table to which I hare referred, differs from tho total given by tho late Colonial Treasurer in his Financial Statement of 18th September, 1834. PUBLIC WORKS FUND ACCOUNT. The account is now divided into three separate accounts—No. 1 account is the balance of the loans raised before 1886, Tho credit balance on this account was on the Slat March last £491,245, subject to liabilities amounting to £334,774. On the 30th September last there was a credit balance of £247,292, subject to liabilities amounting to £280,495. Against this fund is charged all miscellaneous works, such as harbor defences, roads, bridges, school buildings, purchase of native lands, and telegraph expenditure. Hon. members will therefore see that without further borrowing neither can our liabilities be met nor can necessary work of the above description be undertaken if we adhere to the wholesome restrictive principle of the Acts of 1886. No. 2 account ia the account of the North Island Main Trunk Railway Loan, The unexpended balance on the 31st March, 1887, was £674,314, subject to liabilities amounting to £187,981. On the 30th September last the unexpended balance was £615,258, with liabilities amounting to £137,474. There is therefore a sum of £477,784 still available in this account, subject, however, to the cost and charges of raising the whole loan, a matter which has yet to be done. No. 3 account is an account of the loan of 1886, being the amount authorised in 1886 to be raised for railway construction, £1,325,000, together with £242,890, representing certain district railway debentures sold on behalf of the Postoffice in connection with that loan. GOVERNMENT LOANS TO LOCAL BODIES. Up to 30th September last we had borrowed £IOO,OOO under the provisions of "The Government Loans to Local Bodies Act 1889 ” for the purpose of making loans to local authorities. Of that amount £71,686 bad been disbursed at that date, tearing a balance of £28,314 in hand with liabilities amounting to £99,181, to meet which the Government woo'd ask for a further sum of about £100,090. NATIVE LANDS. The Crown and Native Lands Vet will be repealed, and the Maoris in certain districts will bo rendered liable to pay rates, and be permitted to deal with their land as freely as Europeans, excepting that they will b« compelled to retain sufficient to maintain themselves and their 1 families. Where tho Maoris hold • large tracts they will not bo allowed to sell it except in blocks of 1 moderate sizes. Maoris will not be per--1 milted to sell land except through the 1 Crown in districts where no taxes are im- ' posed. CUSTOMS DUTIES. | No increase will be made in Customs : duties at present. I • FUTURE POLICY. With regard to land, there is ro surer * way of lifting the country out of its 1 present difficulties than by the introdne--1 tion of considerable numbers of persona 1 possessed of sufficient means and knowledge to cultivate the land profitably, not 1 only as ordinary farmers, but as fruit- [ growers and g owers of plants suitable for manufacture or to supply other indastries. 1 The time also apparently is very favorable ! to the establishment of pensioners’ settlements. The Government is of opinion that every effort should be made to induce a considerable immigrutioo of this class of 1 persons to the colony. As an essential means towards accomplishing the abova 1 important objects, and, indeed, the settlsmont of the country generally, the Government propose to amend and simplify ' the land laws, and so far as possible, make them uniform throughout the colony; to allow selectors full freedom of choice as to tenure, and above all, and ns the doipinaqt idea, to enable the bom fide sottler to get possession of and a title to his land with the least possible delay and expense. RAILWAY MANAGEMENT. The question of placing the railways under w bat is called a non-political board of management has been before tbe public for some years, and the introduction of that plan into Victoria haa enabled us in New Zealand to watch (he practical working of the system, It is now admitted, I believe, hf all those qualified to judge in Victoria, (hat the system has proved a great success. The Board has now been at work for nearly four years, and I think that it may be fairly said that the scheme has passed fir beyond the stage of experiment. Looking, therefore, to the dissatisfaction existing in New Zealand with our present system, and the satisfaction which the Jjoard has given in Victoria, ipy colleague, the Minister for Public Works, will ask for leave to introduce an Act this session into Parliament to constitute a Non-political Board of Management. THE GOVERNOR’S SALARY,

After having said that it was not proposed to reduce the present Governor’s salary, we propose then, that the next Governor’s salary shall regain at JggOQO, but this shall include tfye cost of bis staff and all allowances. This will be a total reduction of £2600 from the amount at present paid. Without that, the sum I have named above should cover the total cost of the Governor lo the colony. SHB ministers’ salaries. With regard lo the salaries of Ministers, the Premier shall receive £IOOO instead of £llsO at present paid, and the other Ministers shall receive £BOO instead of £1250 at present paid, and «e propose to reduce the f umber of paid Ministers from seven to six, siipuitaqaeusly with the reduction in the number of members of the of Representatives, which I ahull shortly mention. As to travelling allowances, we propose to allow £} JQs a day whilp spindly travelling on the public aery|ce, and limit the total he paid to the whole Ministry to £IOOO in vy financial .year. The Ministerial reside-'ce known an “ Tinakoti Road l^ofth 5 ! should be sold, as h°iog too large and expensive. Qf the others we propose one should he retained as a residence for] the Premier; the cost of maintenance of all but the house itself being defrayed by the occupant instead of from the public funds as heretofore.. With regard to other Ministers, they should receive a house

allowance of £2OO per annum. Bui upon tl.hsulj ct »e will shortly make morn specific proposals. I now cotre to the Regislalive expenditure, t j .