May 17. The Speaker took the chair at two o'clock.

Tuapeka Times, Volume V, Issue 225, 23 May 1872, Page 5

May 17. The Speaker took the chair at two o'clock.

FINANCIAL STATEMENT. Mr Reid premised by observing that, notwithstanding the withdrawal by the Colony of a portion of the revenues, such as stamp and other duties, from Provinces, the Provincial receipts contrasted favorably with those . of former years, affording a gratifying proof of the elasticity and stability of our resources. When the estimates of last year were under consideration, a deficiency of L 97,578 18s 9d had to be provided for; and with a view to reducing it, and relieving the Province from the charge of interest thereon, the Council authorised the Government to sell (on exceptional terms) one or more blocks of land. In compliance with the desire of the Council, a sale of one block of 44,005 acre 3 had been effected, and it would be gratifying to the Committee to know that, in disposing of so large an extent of land for revenue purposes, only a very limited area fitted for agricultural settlement had been alienated. — (Hear.) It was his pleasing duty to inform the Committee that, after providing for the expenditure necessary for carrying on the affairs of the Province, its liabilities had been reduced during the year by L 52,920 8s 9d, and this had been effected in the face of a considerable reduction „ in the sums contributed to the Province from the consolidated revenue — reductions that were not anticipated when the Statement of last year was under consideration. It was impossible for a Treasurer in framing his estimates to determine, with any degree of certainty, to what extent they would be realised or how far the action of the Colonial Legislature might interfere to inspect his calculations. This had been brought very forcibly under notice during the past year by the repeal of the " Payment to Provinces Act, 1870," and the replacement of it by the "Payment to Provinces Act, 1871." The latter, if not re-enacted at the next meeting of Assembly, would expire on the Ist July next, doubtful what our future financial position •would be, or what aid we might expect to obtain from the consolidated revenue. With that uncertainty before them, it was worthy of consideration whether it would not be better to hold their annual meetings after the meeting of Assembly. — (Hear). Such a course would be attended by this advantage — the Council would then be in a position to estimate with accuracy the sums which -would be receivable from the consolidated revenue during the year. In view then of all the circumstances, he thought it was extremely probable that it would be found necessary to call the Council together immediately after the next session of the Assembly. In order to show clearly the extent to which the new "Payment to Provinces Act " affected our revenues, he had had prepared a statement showing the sums received from the consolidated rereaue during the last five years, and also the sums receivable under the present Act. That statement had been prepared, shewing the results under the General Government accounts, and the resvlts under the Provincial Government accounts. There was some little discrepancy between the two statements, but that might be explained to be owing to the fact that our financial years -were not coterminous. If they took it under the General Government statement of accounts, they found that in 1867*8 there was returned to the Province, after paying all charges, the sum of L 81.359 12s lid; in 1868-9, U6 f m 2s lOd ; in 1809.70, Ltf,l9B

-13s- lld-;-in l«70-lT-L33r703 18s Id ; -and L 14.000 to Road Boards— making a total of L57.703 18s Id ; and during last year there was Mourned from the Consolidated Revenue L 13.733 Is Bd, shewing that there had been a gradual reduction in the sums annually contributed to the Province from the Consolidated Revenue — that whereas we received in 1867-8 the large sum of L 81.359 12s lid, the sum had been gradually reduced until, during the last year, we received only L 13 ,733 Is 8d; and the probability was, that if there was no provision for granting a subsidy to the Road Boards during the next year, if there was no allowance to the Province beyond the capitation grant of 15s, that instead of receiving any contribution from the Consolidated JRevenue, the Province would have to pay a sum of LI 5, 000 or L 20.000 during the year from the Provincial revenues. After explaining the balancesheet, the Treasurer turned to the revenue of last year. With the exception of the estimated receipts under the Payment to Provinces Act, which had not been realised, the receipts on almost every other item of importance had exceeded the estimates. The only item of importance which has not come up to expectation was under the head of Railways. The receipts from that source was L 6656 18s 4d, as against an estimated revenue of L 12.000. The result proved that this was too sanguine an estimate. There was no reason to conclude, however, that the traffic on the line was not increasing. On the contrary, the official returns showed that the passenger and goods traffic was steadily and largely increasing. Indeed, the revenue of the last compared favorably with that of the preceding year, although there was a considerable reduction made in the tariff of charges during the year; and there could be no doubt that the revenue from this source wauld be largely increased during the next year. In confirmation of that, lie read *a return of the revenue received from the line during the month of April last, and the cost of the working charges. The total revenue during the month of April was LI 316 7s 3d ; total working expenses, L 492 10s 8d ; while the revenue for the corresponding month last year was L 554 12s 7d ; working expenses, L 431 12s, These figures justified them in expecting that a large increase would take place in the receipts from this railway during the next year. There was also a deficieiency under the head Assessment on Stock. This, however, was more apparent than real. It was owing to a large sum having been carried to the account under the the head of School Fees and Rents. Honorable members would recollect that the honorable member for Oamaru, during last session, placed a motion before the Council to the effect that the revenues accruing from the pastoral lands reserved for educational purposes should be carried to a separate account. In compliance with that resolution, those revenues had been carried to a separate account, thus causing an apparent deficiency under this item. Under the head of School Fees, Rents, &c, as against an estimated revenue, L4OOO, there were receipts amounting to LI 1,886 7s 6d, showing an excess over the estimate of L 7886 7s 6d. This explained the apparent deficiency under the head of Assessment on Stock. The purely Provincial revenues had,. in every instance of importance, been realised, and in many cases been exceeded. With the exception of the estimates under the Payments to Provinces Act, which were very much below the amount estimated, on. what might be termed purely Provincial revenue, the excesses were : — On Crown lands, LI 5, 927 5s 7d ; goldfields revenue, L 1709 Is 9d ; gold export duty, L 2107 3s lid ; tolls on roads, LI 122 8s 7d. These figures afforded a gratifying proof that the general prosperity of the Province had not been at a standstill during the past year, but, on the contrary, had been steadily increasing. — (Hear, hear). Then followed a comparison of the revenue for 1870-1 and 1871-2, and the expenditure of the latter year, and the Treasurer proceeded to consider the future position and prospects of the Province. The fact that our contributions from the Consolidated Revenue have been largely reduced — that the subsidy to Road Boards might not be continued— that there was a diminished revenue from which Provincial services must be maintained — institutions the 'maintenance of which was indispensable, while with the progress of settlement and the increase of population, their requirements, the necessity for their extension, and consequently their cost, was being daily increased, and the revenue not increasing to a corresponding extent—forced upon the Council the necessity of exercising the most rigid economy in the appropriations for the current year, and also forced upon their attention the propriety of making careful enquiry with a view to ascertaining how far it might be practicable to transfer to the local administration of the respective districts — from time to time, as the circumstances of the Province and the growth of a healthy public opinion seemed to warrant — some of those matters which were at present administered by the Province. A Bill would be introduced te empower school committees to levy rates for educational purposes. It was to be distinctly understood that it was not intended, by the Bill to reduce the existing school fees, nor to relieve the Government of the payment of any portion of the stipend at present paid to teachers, but to enable the committees to levy rates in order to supplement the school fees in small districts, and to provide funds for repairs to buildings, Ac. Advantage might also be taken of its machinery to raise money for the erection of new buildings ; while, in view of the heavy demands made on the Government for new buildings, it became a question whether it ought not to be laid down as a rule in all cases where additional school buildings were required in districts where schools had once been established, that a moiety of: the cost should be borne by the district. The Government intended forthwith to bring into operation the Roads Ordinance, 1871, the elections under which would take place in the months of June or July next, and when the new Boards were fairly in operation the Government would be enabled ' to make further reductions in its departmental staff. In. thus making provisions for gradually divesting the Council of, and making over to, local representative governing bodies those revenues which were raised, and which could be most efficiently and economically administered locally, he thought they were pursuing a wise course, one which was calculated to beget an interest in the management of local affairs; which would create a public spirit, and which would be the means of organising a system of municipal and local administration, which could not fail ultimately to secure most satisfactory results, which would form a barrier against the absorption of administrative functions by a central Government, and prevent that confusion and disorder which would ensue, in the event of any change of the Provincial form of government before other local governing bodies were established. Referring to the Government's proposal to endow permanently the various municipalities, he noticed the objection made that the proposal was entirely in favor of Dunedin, and observed that any objection raised against Dunedin having its share would defeat the whole principle that was involved in districts expending their own local rates. The following table showed the sums which would accure to each municipality from these fees, and also the sums expended on main roads in each district during the past year i—

"oo -« 45 a CD -H >ti Q C 3 It •§« 8*3;! 2 &i IS 1

It would be admitted that this was a year of jubilee for municipalities. In addition to the above was the dog tax, which would not very materially add to the amount, although it wouldincrease it by some L6OO or L7OO. If these sums are secured to the Municipalities, it would not only enable them to maintain the main road within their boundaries, but to effect some very useful works which at present are either partially or entire y neglected. Probably those bodies would be enabled, with the sums which would thus accrue, to carry out mauy of those matters, for which at present they looked to the Provincial Council for grants. The Government proposed to ask the Council to agree to a resolution to offer LI ,500 as a bonus for the introduction of a pap&r manufactory— (Hear) — this sum to be in .addition to a sum of L 2500 offered by the Government. Proceeding to explain the .proposed expenditure for the year, he said that it included a sum of L 23.000 arrears due to the General Government—items that could not be disputed— which would have to be made good duriug the year. The total expenditure for he year would be L 281 ,332 lls 9d ; on works for which payments would be made inland, L 33,755, making a total of L 315.057 10s 9d. Last year the appropriations amounted to L 280,658 6s 9d, and during the preceding year to L 458.612 12s 2d. There was a saving on departmental expenditure, as compared with last year, of L 7381 18s 4d, and an exces in other items of L 2413 9s 6d. The excess was under the head of Harbor, Lunatic Asylum, Industrial School, Collection of Tolls, and Railways — items on which, it would be admitted, no saving could be effected, while the items on which savings had been effected were strictly departmental. The items of estimated revenue explained we're dog and goat tax, sales of reclaimed land. As to the former, there was some doubt as to whether the Ordinance might not be ruled rule vires, and the Government proposed to place those sums in the estimates of revenue and expenditure, and' in the cv .nt of the Ordiuance being questioned, the sums would be paid over to the respective municipalities during the present year. It was expected this year to realise LIO,OOO from the sale of reclaimed land. The Government was proceeding with the reclamation of some of this land, and the prospect of the establishment of the Port Chalmers railway station was lik ly to very materially enhance the value of the land. There was also the further consideration that the Geneial Government wished to procure a site that had been reclaimed, at great expense to the Province, as the terminus for the Clutha Railway; and the Government thought it was only reasonable, seeing that the railway would be constructed from loan, that the Province should be recouped for the expenditure incurred— (hear, hear) — and receive some revenue from this land which it was fully entitled to. If not purchased by the General Government for railway purposes, it was intended to offer it for sale, and it would realise a large sum if now placed in the market. The Government proposed to ask the Council to agree to a resolution to open for sale, at 10s per acre, the unsold lands in Hundreds which have been in the market for seven years. The Hundreds were now :—: — Kakanui, containing 17,500 acres unsold ; Awamoko, 3438 ; Marewhenua, 4134 ; Catlins, 54,992 ; Waikawa, 9143 ; Tois Teis, 55,000 ; Mokoreta, 19,424 ; Tuturau, 20,515; total, 184,146. He thought it would be admitted that the Statement was as satisfactory as could have been expected when they considered the large drain on our resources to provide for the permanent charges of the Colony. When they reflected that this Province, with a population of some 69,000 souls, contributed a sum equal to L 2 10s 9d per head of the population, the cause for wonder was not that they had so little, but that so much could be made available for our local requirements. ENDOWMENT FOB GOLDFIELD HOSPITAL. Mr Shepherd moved— "That an address be presented to his Honor the Superintendent, recommending that 20,000 acres of Crown lands, in the Dunstan district, be granted as an endowment for the Dunstan Hospital ; that 20 000 acres of Crown lands, situated in the Tuapeka district, be granted as an endowment for the Tuapeka Hospital : that 20,000 acres of Crown lands, situated in the Wakatipu district, be granted as an endowment to the Wafcatip Hospital j that 20,000 acres of Crown lands ,situated in the Mount Ida district, be granted as an endowment for the Mount Ida Hospital." j The hon. member pointed out that the pro- ' posed reserves were taken from the respective districts in which the proceeds of them were to be expended, which he conceived to be a right principle Mr Bastings, in seconding the motion, referred to the number and variety of acci- | dents that were constantly occurring in the goldfields districts, and the difficulty of supporting the various hospitals. He thought if the motion were passed, it would enable the managers of these hospitals to meet all their engagements, with the voluntary subscriptions that were annually raised. Mr Bathgate would agree to the endow* ment of hospitals if carried into effect by the adoption of some general principle; but ho daresay, if he were to propose an endowment for the Dunedin Hospital in proportion to those asked for for the up-country hospitals, he should be called "grasping" for the advantage of Dunedin, Ac. He wonld not do so, but would content himself with moving the following amendment : — "In the opinion of this Council, it is expedient that all the reserves made for hospitals specially should be applied for the maintenance of hospitals generally, and so managed that the reserves arising therefrom should be entered in a special account, to be palled ' The Hospitals' account ;' and the amount at the credit of such account should be distributed annually towards the support of the various hospitals in proportion to the number of patients and the amount of the voluntary contributions of the hospitals respectively." The Provincial Secretary, in opposing the original motion, pointed out that the Council had already set apart half a million of acres of land for hospital purposes ; aud expressed his opinion that the amendment would be more advantageous even to the special districts named than by the plan proposed in the original motion. Besides provision would thereby be made for the establishment and support of hospitals that may be required in other districts, even after we might have no more land to endow them with. The question being put, " That the words

proposedto^be omitted [from Mr Shepherd's motion] stand part of the question," a division was called for, when there voted— ayes 6, noes 21. The words were accordingly struck out. The question was then put for the insertion ! of the words as proposed by Mr Bathgate ; whereupon Mr Bastings moved an amendment similar in substance to the original proposition, excepting as to the number of acres proposed to be set apart— viz., 5000, in lieu of 50,000 in each case— and substituting ' ' pastoral lands "for " Crown lands. " The amendment was negatived, a3 were two others of minor importance ; and Mr Batbgate's amendment was affirmed on the voices.

&> D. Dunedin ... 312S 0 Hawkesbury 80 0 Palmerston ... 100 0 Oamaru ... 461 0 Balclutha ... 140 10 Lawrence ... 271 10 Invercargill ... 766 10 Riverton ... 170 0 Clyde 295 0 Cromwell ... 230 0 Queenstown... 265 10 Alexandra ... 250 10 Port Chalmers 166 10 Milton ... 236 10 538 70 72 127 9 12 40 20 30 20 30 25 30 48 o. 0 0 0 0 0 0 0 0 0 0 0 0 0 0 2590 I 10 I 28 < 334 i 131 II 259 11 726 II 150 i 265 i 210 i 235 11 225 li 136 H 188 li