FINANCIAL STATEMENT.

Temuka Leader, Issue 2525, 6 July 1893, Page 2

FINANCIAL STATEMENT.

The Hon. Mr Ward delivered his Financial Statement last Tuesday evening. After reference to the death of the late Mr Ballance, he said the estimated revenue for the year was set down at £4,326,100, whereas the actual receipts amounted to £4,499,826, or £173,736 more than the estimate. Of this amount Customs duties provided an excess of £67,599; stamps, £36,424; railways, £34,090; the land and income tax, £14,548 i and smaller heads of revenue, £9075. Marine was by £446, and territorial revenue did not reach the estimate by £4680: The railway revenue exoeeded the estimate by £34,099, and the estimated expenditure by £14,362. The estimated expenditure of ordinary revenue account made up a total of £4,201,844; the actual expenditure amounted to £4,153,115, or £48,719 less than was estimated. In the majority of Departments there had been savings; whilst in the Working Railways Department, which he had already referred to, there had been an excess of expenditure of £14,362, mainly due to the growth of traffic, and to unforeseen expenses from storms and floods. The net result of the Departmental expenditure shows a saving of £34,371. The land receipts were £110,355, and the expenditure £141,044, the deficiency being £28,520. The actual results of the year were that the revenue was £4,499,836, and the expenditure £4,153,125, leaving a surplus of £346,711, to which must be added a surplus of £165,571 brought forward from last year, making up a total surplus of £512,282. From this would be taken £200,000 for the public works fund, and £28,502 for the land fund, and then there would still be a net surplus of £283,780.

PUBLrO WORKS FUND. The position of the Public Works Fund was as follows: —On the 31st March, 1892, Part I. was in credit to the amount of £293,700, but to this was added duriug the year various sums, including the £200,000 from the surplus, which brought it up to £518,943, but the expenditure was £341,334, leaving a balance of £177,606, to which sums ware to be added which vrould bring up that amount to £183,749. Part ll.—The available fund in this account was £284,558, the expenditure £131,614, leaving a balance of £152,943! Tlie position of the public works fund therefore was tha| there regains to credit of Part I. £183,749, and ■• ->* Part 11. £152,493, making a to credic *,. " : * «f Dubjic works of total sum to the creui. u £336,692.

NATIVE LANPS. Under the Act of 1892 debentures to the amount of £27,700 were created, and Native lands to the value of £11,875 in cash and £7700 in debentures bearing interest at 5 per cent, were purchased. This left £8124 for making further purchases of Native land. There was no difficulty in getting Native land to buy, but the funds were limited.

LOAN CONVKRSIONS. After referring at some length to loan conversions, Mr Ward said that £4,214,100 converted into 4 per cents sold at £lO7 and £llO. These were old loans which had fallen in by effluxion of the currency of debentures. The Colonial Bank waa repaid its advances, and the £400,000 due to it was converted into Z\ pw «nte, aad, bqW a* $H- Saying

was effected through the rate of interest being reduced from 5 to 4& per cent. LOANS TO LOCAL BODIES. The sum altogether available for this purpose was £586,300, of which £458,061 was paid to local bodies, £37,833 to land and survey, £89,800 to public works, and £177 to revenue, leaving a balance of £429. As the demand for opening up the couutry was increasing, funds would require to be provided for this purpose. THE PUBLIC DEBT. The gross public debt was £38,713,068 in IKB2, and £39,257,840 in 1893, making an increase of £544,772, of which increase £328,347 was due to loan conversions. The sinking fund in 1892 was £1,037,863. and in 1893 £1,113,770, thus increased by £75,908. The net public debt in 1892 was £37,675,208 ; in 1893 £38,J44,070, or an increase af £488,864, of which £328,347 was due to conversion of loans. FUTURE PROPOSALS. Having dealt with the past, Mr Ward passeJ on to his future proposals. The estimated expenditure for the current year is set down at £4,409,371, showing a reduction of £8304, although the amount to be paid for interest and other permanent charges had increased. The estimated revenue is £4,255,200, t<> which will be added sinking fund debentures to the amount of £284,500, making a total of £4,539,700, or £70,491 less than actually received last year. This would leave a surplus next year of £130,329," and to this must be added £283,780 brought forward from last year, making a total surplus for next year of £414,109. LAND AND INCOME TAX RESULTS. He had pleasure in informing the Committee that the estimate of revenue from the land and income tax had been exceeded. The results were—lncome tax, £67,658; land tax, £297,275; which included the graduated land tax, £67,056 and absentee graduated land tax £621. The total from laud and income taxes was £364,933. In addition to this the arrears of propeity tax collected amounted to £15,446. The results of the land and income tax system made up to June 30th were as follows:—Land Tax, including tax paid, £199,198 ; outstanding, £2082; total, £301,280. Income Tax, paid, £71,258; outstanding, £2619; total, £73,877. This gave a grand total of £375,157, as the assessed value of the system for one year as far as ascertained. The estimate of revenue, taken into account in last year's Finaucial Statement, was £350,000, there thus being an excess of £25,155 over the estimate.

SETTLEMENT OF LAND. The Land Act of 1892 had only been in force about five months, yet the transactions under it had already proved that the people appreciated its liberal terms. During the year just ended the seperate selections under the various systems of disposal in force were 3071, and the total area disposed of was 1,663,687 acres; being an excess over the previous year of 210,609 acres; while the number of selectors were greater than that of the previous year by 558. The transactions of the year included the leasing of 119 runs of an area of 1,104,324 acres under perpetual lease with the right of purchase; 385 selectors acquired an area of 122,557 acres under the system of occupation with right of purchase; 161 selectors acquired an area of 54,271 acres. The area of land leased in perpetuity without the right of purchase amounted to 55,320 acres taken up by 126 selectors ; the area of land taken up by associations without the right of purchase was 376,670 acres, the number of selectors being 1874. Of this area 157,381 acres had been surveyed, and the sections ballotted for among 838 selectors, leaving 25 blocks which still require to be surveyed, and some of which were now in course of being surveyed. The land disposed of on deferred payment was 21,474 acres; the number of selectors being 198. Land was sold for cash to 475 settlers and 152 townspeople, the area purchased being 36,853 acres, and the cash received £49,735. This included &§s&* of perpetual leaseholds converted into freeholds. These perpetual leaseholds so converted were occupied by 109 selectors, and amounted to 33,381 acres. These figures showed what very satisfactory progress had been made during the year. It would also be noted that more selectors had acquired land than in any previous period for three years. The efforts of the Government under the Bill of last session to obtain a sufficient quantity of land, had not been altogether successful. The only transactions completed up to the present had been the acquisition of three lots of a total of 1027 acres, particulars of which would be laid on. the table of the House. It was the intention of the Government to give the Acl a fair trial, but if land could not be obtained under it, in portious of the colony where settlement was most required, it would be the duty of the Government to ask the House to so amend the Land for Settlement Act as to provide for land being taken at its fair value where absolutely required for settlement.

MISCELLANEOUS SUBJECTS. Mr Ward then dealt with the Agricultural, Labor, and Post and Telegraph Departments at some length, and reviewed the Cheviot estate transaction. The property, which contained 84,222 acres, was assessed at £304,826, but the owners' assessment was only £260,000, and at the latter figure it was purchased. £60,220 was paid in cash, and the balance, £200,000, in Treasury bills, bearing interest at 4£ per cent. Thirty-six thousand is agricultural land, and will be disposed of next October. The right of grazing on this was let for £2030, and the remainder was let for £4043, the homestead and some surrounding land being let for £414 a year. There would be no difficulty in disposing of the land in large blocks at the £304,000, at which it was assessed. Mr Ward next dealt with reduction of interest in Post Office Savings Bank and several other matters, and came to SUBSIDIB* TO LOCAL BODIES. It was intimated in the last Financial Statement that the local authorities ought to be prepared during the current year, to give up one half of the amount of present subsidy, and that during the following year the remainder would disappear. The Government had, however, given this matter their very serious coiir sideration, and had come to the conclusion that in view of the large amount of land settlement going on, the tima is not opportune for such alteration to be made, The construction of roads to give access to lands is of the utmost impbrt""ce ; and while so much of this work is ""•—«"ld not be a good policy going on iv ~-.. """ *~->l hodies, to cripple the resources of tne «/>,... who have so much of this class of expenditure cast upon them.

DEFENCE. The report of the Commandant was before the House, but no alteration would be made until Parliament decides, so the estimates were almost the same as last year.

EXEMPTION OP IMPROVEMENTS. The proposal of the Government was to exempt from taxation all improvements, and make the tax a land tax pure and simple. This would lead to a loss of £ 51,000, but as no triennial valuation will be necessary a savißg of £20,000 a year will be effected. The uuimproved value of land d. 068 »ot vary 59 tH»t

triennial valuations need be made. It was also proposed to increase the graduated tax over £IO,OOO value, so as to get £19,000 more out it, That would leave a deficit of £IB,OOO. Building Societies would be exempted from a land tax, and the shareholders would have to pay an income tax instead. The law would be so altered that companies could not deduct interest payable on debentures from the amount of land or income tax paid as agents for debenture holders. Gold-mining companies would be enabled to claim a deduction from their assessments on account of the depreciation of their mines when they were worked out. It was intended to extend the operations of the Government Insurance scheme, not only to the civil service, but to all employed in the Government service, including the police. With regard to the panic in the other colonies, Mr Ward said that there was no danger of it reaching this colony. He attributed our safety to the loyalty of colonists to their financial institutions and their confidence in the colony. In peace they mUBt prepare for war, so proposals would be submittted to the House affecting the banks of the colony.

THE TARIFF. The Government had collected a large amount of evidence with the view to an adjustment of the tariff and the removal of some of the admitted anomalies that exist therein. It would, however, be ex* ceedingly inadvisable in. an expiring Parliament to attempt to deal with thiß large and important matter. It would be necessary in the first session of the new Parliament to deal with the question of the Tariff in a thorough and comprehensive manner. In the meantime it. was in the interest of the colony to maintain a strong finance and to thus have the means of enabling those requiring work to be well employed. RAILWAY CONTROL. The Government do not propose to repeal The Government Railways Act, 1887, neither is it intended to take from the Commissioners the control of our railways. Considerable interest was, of course, evinced in the proposal of the Government to have a representative on the Board of Railway Commissioners. Looking at the large interests involved, the enormous capital invested in the railways, and the necessity for the varied industries in the colony from time to time being able through the voice of their representative to remove abuses and to effect necessary changes, it seemed essential that this important branch of the service should no longer be allowed to remain under the sole control of men who are not directly responsible to Parliament. Under the change proposed the evil results that were so industriously predicted could not take place. It was a remarkable fact that thoei who had expressed the largest amount of approval of the existing system were the opponents of'the present party in power. The Government believe that great economy would be obtained by abolishing the Public Works Department, and have the duties now performed by that branch of the service undertaken by the railway management. It was obvious that there was now a double expenditure in many directions throughout the colony being incurred by the continuance of these two services, a large proportion of which would be saved by amalgamation. There was no reason why a constructive and I a permanent way department could not exist side by side, and be carried on. successfully by one administration. He had no hesitation in affirming the belief that it would be to the great advantage of the country to effect such a change. The matter was well worth the consideration'"of hon. members.

LOCAL GOVERNMENT AND CHARITABLB AID. The important question of local government had received the close attention of his colleagues and himself. In dealing with.a large and comprehensive change in the governmsnt of the colony it would, he think be conceded that it was desirable that it should from the start be placed upon a basis that would not require hurried changes after it had been established. The present local governing authorities were admitted to be too numerous, and many of their duties clashed with one another, to say nothing of the enhanced expenditure that the multiplication of local bodies involved. As members were aware, the time of the House had for many years been taken up in dealing with numerous matters that should have properly been dealt with by local administrator, but with the machinery at present in existence there was no other course than to have them deilt with by Parliament. Closely intertwined with local government was the important question of dealing with the charitable aid institutions of the colony, which at present were in an extremely unsatisfactory condition. To give thesa two matters the consideration they deserved would take the greater part of a session, and, therefore, it would not be possible to deal with them thoroughly at the close of the present Parliament. The Government would, however, next session submit proposals dealing fully- with these two important subjects. BORROWING. Having stated that the Government do not propose to have recourse to borrowing, but rather to continue their policy of seLE-re-lian ce, is nevertheless their duty to Bee that their necessary public works are not starved or brought to a standstill for want of funds, and having in view the urgent and continuous requirements of the fertile tracts of country only waiting for roads to give access to their productiveness, they & id determined to again ask Parliament for authority te transfer a suitable sum from their estimated surplus for the purpose of promoting settlement and for the carrying on of public works which were urgently needed. They should this year ask for a vote of £250,000 in aid of the ways and means of the Public Works Fund out of the £414,000 which he had estimated would be available at the end of the current financial year. Such an appropriation as this would still leave a balance of £164,000 to provide for the usual supplementary estimates and other unforeseen aontingeupies. CONCLUSION, In conclusion it was very gratifying to know that during the past financial year their progress had beeu of a most satisfactory nature in every direction. This was apparent, and our prosperity was all the more marked when wa noted the absence of any strong influence which may be characterised as superficial or fictitious. He ha,fl ho hesitation instating that neve? in the previous history of the" colony were its prospects brighter. Land settlement had progressed vigorously ; the acquirement; ofnatiye bjndhad gone on actively; our pastoral and agricultural Interests had assumed large dimensions q#d.. fiafl, attained to a degree of importance second, to none ; trade and commerce were active and increasing; the bulk of our exportg was larger than ever» our m}:nes has greatly developed, and the output qf ppp gold was once more recovering. Compare 4 with other countries our farmers an 4 artisans were to be congratulated upon the comfortable positions "that they ogcupy, Many of the troubles of the bid wprid

The revenues for the employment of well directed energy were large and expanding, and we must have the satisfaction of knowing that in addition to a surplus in our revenue we had also a surplus in all articles over and above our requirments available for export. The policy of selfreliance had borne fruit, and economy in both private and public life had assisted to bring about a happier condition of things. The incidence of taxation had been adjusted and distributed more equitably than hitherto. The effect of the changes had been the means of attracting both capital and people to our flhores, and with the numerous advantages we enjoy the active co-operation of all classes wis all that was necessary to Bteadily advance this colony to an exalted poßitson amongst the countries under the sway of the British Crown. In reply to Mr Eolleston, Mr Ward said that the debate on the Statement would be taken on Friday.