FINANCIAL STATEMENT.

Thames Guardian and Mining Record, Volume I, Issue 272, 22 August 1872, Page 3

FINANCIAL STATEMENT.

The principal products of the colonies were considered, and the results were strikingly favourable to New Zealand. Thus upon the average of the five years ending'lß7l New Zealand exported gold to the amount of LlO 8s per head per annum of the population, against L 7 19s in the case of Victoria, and 10s in that of New South Wales. For same period New Zealand's average export of wool was equivalent to L 6 9s per head as against L 5 7s for Victoria, and L 4 19s for New South Wales. The exports of agricultural products and timber from Now Zealand for the same period was equal to 13s per head of the population per year, but from Victoria those exports averaged only 3s 4<l per head, and from New South Wales 10s 6d per head. A fuithcr sum must be added in the case of this colouy for flax, the exports of which, including the native population, was equal to 4s Id per head, much had been said and written respecting New Zealand’s oppressive Customs tariff, but if the Victorian rates, including ad valorem duties, had existed here, and if the values were entered the same as at present, we should have raised in Customs revenue during 1870 L 78,000 against L 73,100, which we actually raised. That disposed of the allegation as to a higher rate of taxation in New Zealand as compared with Victoria. It was to be borne in mind that the native question had cost New Zealand five millions sterling in the shape of expenditure more than would be required in a colony situated like Victoria, and that fact showed how great the resources of this colony really were. It was alleged that the cost of Government hero was heavy, and of course the rate per head of that cost was large because the population was small, as it was to be especially remembered that here the smallest aggregation of population asked, and expected to receive, all the conveniences which, in older countries \v«re only expected by large communities. Still the comparison of the departmental cost of Government was favourable to New Zealand. ’ Talking the financial year 1871-2 the whole expenditure iu New Zealand, exclus ve of interest of sinking fund, amounted to L 594,000, and the expenditure of the several Provincial Governments for civil service purposes including education, police, gaols, harbours, and miscellaneous, but excluding public works, was L 251,000. Together those sums made a total of L84G,000, against an expenditure in Victoria for like purposes of L 1,415,000. Turning to the proposed expenditure for 1872-3 the total amount on the estimates was L 933,830, showing an increase of L 21.000 on the appropriations for 1871-2 ; that increase was principally represented by increases in permanent charges such as L 5,000 for interest on LOO,OOO of Treasury bills, and Lll,ooo interest for defence and other purposes loan, other items going towards the increase were the additional amount for members expenses. Cost of buildings now become a colonial charge, and the expenditure on account of Manukau light-house. There was also an increase in the expenditure of some of the departments, such as the telegraph and the land registry. Hon. members, iu looking through the estimates must decide for themselves what they would consider as reductions in expenditure fairly coming under the head of retrenchment, or under that of reductions arising from there not being necessity to continue certain services or officers. To expenditure set down hi estimates there must be added L 208,000 for Provincial capitation allowance as against L 200,000 last year. Moiety of stamp duties receipts to be paid to the Immigration and Public Works Fund, L 40,000, being the second instalment of the deficiency stated last \ ear, and leaving only L 45,000 to be cleared off next year. There must also be added a sum of L21,00D, which it was proposed to pay to the Immigration and Public Works Fund, in addition to one half of the stamp duties which had been paid over to that account. The L 21,000 being calculated to represent fairly the amount of interest and sinking fund on the payments made for works completed and on final payments. This would make a total expenditure of L 1,000,000. It should be remembered that the capitation allowance to provinces represented LB,OOO more than was paid last year. It was proposed also to reprieve provinces from payments of L 1.900 a year for salaries of provincial auditors, and L 23,000 a year the cost of inland mail carriage. The sums together would represent a payment of L 33,000 out of the consolidated revenue to and on account of the provinces more than was paid last j 7 ear. It was not proposed to continue the extraordinary aid of L 50,000, which was last year granted to the provinces in consideration of its being alleged that there were engagements to meet which required that amount, but L 50.000 being same as last vear, would again be paid to Road Boards. The estimated total revenue of the year was L 1,076,000. The principal items were Customs L 820,000, stamps, LBO,OOO, postal L 50,000, telegraph L 33,000, judictal fees and fines L 32,000. It was estimated that the stamps would this year yield LBO,OOO, although several remissions would be proposed, namely, the annual licence fee on companies for the promoting of industries and colonisation, such as meat preserving companies, saw-mills companies, sleamboat companies, tramway companies, immigration companies, public hall companies. ami fishery companies. It would also be proposed to remit the stamp duty upon cheques of friendly societies, and upon receipts given them for mouiesVlisbursed by them, and to remit duty on all conveyances of land in trust for religious, charitable, and educational purposes. It would also be proposed that the stamp on receipts should be reduced to one penny. The Postal revenue was estimated at L 3,000 more than last year, notwithstanding the contemplated reduction of the postage on newspapers to one half-penny. So many newspapers were now sent by coach, which would, no doubt, be sent through the post under the reduced rate, that it was not considered the reduction would diminish the revenue of the department. The total estimated revenue, then, was L 1,076,000, or au increase of L 86,000 on the estimate, and L 68,000 on the actual receipts last year, addingLlo,soo, theamount of surplus with which the year was commenced, there was a total ot "L 1,086,000, and deducting the total proposed expenditure, L 1,060,000, there would remain L 25,000 surplus upon the year. A portion of that surplus would be required to meet supplementary estimates and unauthorised expenditure. It must also be remembered that when the estimates were commenced, the report of the Select Committee on public buildings had not been received, which report contained a recommendation that a considerable snm should be expended on the repair of buildings, provision for that expenditure was, of course, not included in the estimates. On the other hand thero would certainly be during the year

1 savings on votes, and he was inclined to think that if the House should desire that further payment should be made in aid of the Immigration and Public Works account, such payment could be made out of ihc surplus. In conclusion, bethought be need not apologise for the paucity of novel features and new proposals in the Budget. After the changes during the last three years, it was gratifying to be able now to dispense with further large alterations. This was the fourth consecutive session in which he had made the Financial Statement, when ho considered the period covered by those statements he could not but congratulate the Committee upon the improved condition of affairs in the colony. He hoped that he bad avoided creating in the minds of the Committee anything like an impression that"the Government took credit not belonging to them. The great revival of prosperity in the colony was due to a power higher than that of kings or people. All that the Government claimed was that when there was a disposition to despondency they set themselves to do, which seemed best calculated to restore confidence, and they called upon the people not to bn discouraged blit to arm themselves to contend with their difficulties and to hope for a brighter future. That future had shown itself in such bright colors, was due to a power beyond all Governments. The Treasurer concluded by moving a resolution that it was expedient to reduce the Stamp Duty on Receipts to one penny. The resolution was agreed to by the Committee, and was reported to the House and adopted. The House then adjourned. The delivery of the statement occupied two hours and a-qunrter.