FINANCIAL STATEMENT

Wairarapa Age, Volume XXXII, Issue 10045, 20 July 1910, Page 5

FINANCIAL STATEMENT

REVENUE FOR THE PAST YEAR. THE HIGHEST ON RECORD. PROSPECTS FOR. THE FUTURE. By Telegraph—Per 'Government 3 | Memo. 3 I W(ELDI'NGToN,.JuIy 19. | The Finanoial Statement for the I year was delivered in the ot' ■ Rppreaentalswes to day .by the Jtfrime 5 Minister. ' I The Statement-points out that the revenue of the ipast year ihas been *the highest on record, and that'the Treasury Books closed with a substantia balance of £482,8J.6. 3\ 7 otwithstand-, ing thd fact that a period of financial stringency had neen experienced dur-: ing the previous year the actual receipts of revenue for tthe year just clused exceeded the estimate by no less than £218,€21. There tbad ibeen a marked revival and w.ith it ;an im- ( proved revenue, and the-fact that it; | w,as.well in excess of .prediction, was; a subject for tincene congratulation. The total revenue for (t!he year was the estimates being #9.,025,000. Railways were responsible for £3,258,263, or £208,263 more ; than estimated. Customs exceeded the i esti nate by £41,121, and misoellan eous revenue was £?6,099 more than 1 was anticipated. Stamps did not j co.jue up to the estimate by £63,648, 1 I and Territorial revenue was short by a sum of £21,413. The principal revenues were in the Railways, which were no less than £339,756 better than in the previous year. Land Tax was responsible for ifc'37,369, and Miscellaneous, £33,889. Customs showi end a decrease of £130,127, owing to reduced importations, and stamps suffered to tLe extent of £53,976, while registration and other fees were less by £28,756, owing to the loss of Chinese poll-tax, consequent on the introduction of the Educational Test. EXPENDITURE. 1

A's compared with the estimates, the actual amount underspent was £119,777, which it was c'aimed showed that care in the expenditure was exercised, and should call for recognition from impartial' critics. The estimated expenditure for all services was £9,110,699, and the amount actually spent was £8,990,922. As permanent appropriations exceeded the estimate by £11,612, the saving was effected in the Departmental appropriations, for which purpose £5,607,902 was voted and £5,476,513 was expended. A SAVING aLL ROUND.

In every class except the Legislative Council there was a saving of the amount appropriated. Even the Railways, which had the authority by law to make use of its surplus revenue amuunting to £208,263, did not require to trench upon this amount. There was a savins in eleven classes of no less than £2Ol, 223, while five classes comprised the Post and Telegraph (£41,226) working, Railways (£47,881), and Education (£14,712), in which the services cannot be uut without impairing their efficienry THE ACTUAL RESULTS.

The results for the year are set forth as followsßalance hrought forward Ist April, 1909, £184,321; receipts during year, revenue, £9,171,119; National endowments, £67,142; other receipts, £656; total, £9,238,917. Expenditure during year parmit appropriatio-s, £3,514,409; Departmental appropriation, £5,466,099; Services not provided for, £10,410; total, £8,990.922. TREASURY BILLS,

Some years ago the account owing under this head was so large and constant it was regarded as a part of the country's permanent debt. It was announced to Parliament that the large amount then outstanding would be reached. This had been fulfilled. But the Kills cannot be done away with altogether, as they must ,be issued in anticipation of accruing revenue to meet regularly recurring

ou'goidgs, land for settleks. ] The amount available to the j current year including the balance at the end of the financial year was £662,366. For acquiring estates and the expenses incidental thereto there was expended 'during 1909-10 tha sum of £279,238. In the previous year the amount was £372,245. There were still considerable areas | under offer, but the prices | made it difficult purchase any jreat area. During the year fourt en Bstales were purchased, ten of which have been settled. The number of jpDlicants tor farms containing an irea sufficient t> keep a man fully employed all the year rutind was far n excess of the number of sections iffered. It would therefore appear hat there is an unsatisfied demand ! or lands in fair-sized holdings, vhich every effort must be marie to neet.

LAND AND INCOME TAX. The Land Tax collection for the year was £642,270, being £17,27U in excess of the estimate of £625,000; it showed an increase of £37,370 over the collection of the previous year. The Income Tax estimate for the year as £300,000, and the actual collection £316,835, giving an increase over tin estimate of £16,835. In view of the recent depression this is considered very satisfactory. LOANS TO LOCAL BODIES. A Bill to enable loans to be

granted under the old t-ystem where they had previouslv been authorised without fresn proceedings beiag necessary will be introduced to enable such loans to be granted by the Treasury. The total amount paid to .local bodies last year was £245,3527.

PUBLIC DEBT. The gross public debt on the -31st March last was £62,168,407. This -shov.s a reduction a compared with; the previ jus year, but this is due to , the tranfer of £12,247,238 to the, State Guarantee Advance-) Depar?-, >ment. LOAN MONEYS. During the year loan moneys ori advances amounting to £3,554,988, were rectived. This amount was! made up ad follows:—For Public Works, £1,950.223; Hutt Railway; ; i : and Road. £52.590; Duplication of . lines, £76,500; Lands for Settlement, £169,485; Loans to local bodies.' £325,000; Advances to Settlers, £585,000; Advances to workers. £30.0,000; State Coal mines, £30,-' 000; Scenery preservation, New Zealand Consols, £9,078, increase by conversions, £47,060. NO CAUSE FOR ANXIETY. Our public deb* need cause no anxiety, "for every million of our defot j our assets may safely be said to have ; increased by three millions." So far; as regards loans filling due and requiring to be provided for |this has j beec a heavy item. The loans falling j due during the present financial year j amounted to £621,943, but no diffi-: culty was anticipated in satisfactorily arranging for them. A large amoujat of money had been offered in fairly large sums for investment ■ from beyond the Dominion at 4 per cent par, tut was declared in favour of a loan of £],,850,000 at 3£ per j cent 11

POST OFFICE DEPOSITS. There had been a large increase in the deposits in the Post Office Savings Bank„ for which investments had tune founds and sufficient money had been provided from that source to lend to local authorities at 3'J per cent brokerage and other loan charges being sawed. There could be ho safer or better way for using these funds.. ... The money belonged to the people and the interest remained in the Dominion. CLOSER SETTLEMENT. The construction of railways rendered large areas of land available for settlement purposes, but for the furtherance of closer settlement it is essenial that facilities'for transport must be provided. Consequently the construction of roads more particularly in the backbocks was a matter of the greatest importance. MINING.

The mining industry was being energetically developed as is shown by the substantial increase in tie value of the mineral productions of the Dominion for the year 1909, the exports of gold, silver, manganese, and kauri gum all showed increases.

WATER POWER. New Zealand was exceptionally fortunate in possessing a number of lakes and rivers of large volume, flowing rapidly to the ocean. The application of electric power wouli more and mora enhance the value of such sources of energy. Considerable attention was given some years ago to the question of the utilisation of our abundant water power and valu able reports have been obtained. The Government considers that the time has now arrived to take the matter up with vigor, and proposals will be submitted shortly to undertake one or mure power schemes. It is proposed to devote about £500,000 per annum to thia work. i IMPROVEMENT OF LETTER I DELIVERIES.

Tt is expected that in the Post and Telegraph service a saving of fully £IO,OOO per annum will resnli. It is intended to apply this savin? to the improvement and acceleration of letter carriers deliveries, the establishment of ruraj mail deliveries, the reduction of the parcel post rates, and the contributions of Settlers in connection with private telephone wire?. By dispensing with the services of many officers, and in other ways resulting from the amalzsmation of departments, and the enforcements of economies, wherever possible. Over £300,000 ppr annum has been saved to the country.

DEFENCE. Tha important question of defence engaged the attention cf the Government during the recess. Consequent on Field-Marshal Kitchener's report it will be necessary to ask Parliament to make considerable alterations in the Act. It has been agreed that the .name of the new Dreadnought should be "New Zealand." NATIVE LAND COURT. Tha work of the Native Land Court showed in the number of cases advertised a decrease in comparison with the previous twelve months. A ' total of 9,055 cases were scheduled for hearing, the number of Gazette notices being 80. Maori land board. j The Boards have been kept activt lv I engaged in the revision snd the confirming of private alienations port in the administration of considerable areas of trust lands. During the prsiod under review 371 leases were approved of, the area comprised ' therein amountingJJ to 265,122 acres,

in addition to which 60 transfers, comprising 5,134 acres, were consented to, and 26 mortgages, comprising 3,292 acres, were recommended. The aggregate area of lands administered by the Boards .totals 411,677 acres, and 920 leasee of a total area of 245,444 acres, had been granted. It was hoped legislation to be submitted would remove many of the difficulties in native townships. LAND BILL. The all important question of the closer settlement of the lands of the Dominion, both private and down, received th2 closest attention, and the Uovarnment would shortly bring down a Land Bill which would, it ; was believed, be acceptable to the ] majority of people of the country. STATE ADVANCES DEPARTMENT. The business during the year was ■—Number of loans granted to settlersJ2,74s, amounting to £1,095,120, and to workers 1,359, amounting to £362,352. Reforms to greatly assist local authorities and simplify, cheaper?, and shorten the present troublesome business of obtaining luana would shortly be introduced.

EXTINCTIuN OF PUBLIC DEBT. Although the public and private wealth of the Dominion exceeded by so much its total liabilities, public and private, and was increasing three or four times as fast each yean, and our credit very high, the Government have determined to introduce a scheme to repay the whole of (the present debt |n 75 years, and to prbviide that all lu*.ure loans eould noma under it and be extinguished m that time after their creation. The fertilizing streams of capital that wou d in future years percolate to every part of this country through ifche creatioaa nf this scheme must have a great effect in assisting in ita development. NATIONAL ANNUITIES.

It was the Prime Minister's intention to ask Parliament to place on the statute Book this year a scheme for national annuities. The proposals emi)6died in the Bill introduced last year has obtained the widest approval in this couqtry, but farther considera-' tion had necessitated some alteiation of its structure. Its main aims, how-

ever, were preserved, viz., those of providing an annuity for men ami women who choos-a to join the scheme, and seconcly (and this largely at the expense of the State) to relieve by contributing in pxoportion to the number of children the hardship which falls upon a worker's home from his .sickness or accident.

OUTLOOK FOR PRESENT YEAR. The outlook for the present financial year, concludes the Statement, was very satisfactory. The operations for the year shoald give a considerable balance.on the right side of the ledger. Ihe expanditure was estimated at £9,316,470, and the at £9,611,575, being £373,314 in excess of that of last year The balance of the public works fund on the 31st March last was £662,366. To augment this amount it was propose:! to transfer £550,000 from the consolidated fund. This, however, will not, be sufficient for the prosecution of urgently required work, and it was therefore proposed to ask Parliament to authorise a loan of £1.750,000 for railways, roads, and other public works.