FINANCIAL STATEMENT

Wairarapa Age, Volume XXXII, Issue 10688, 7 August 1912, Page 5

FINANCIAL STATEMENT

A PROGRESSIVE POLICY The Financial Statement was delivered by the Hon. J as. Allen, Minister of Eiiuioce, va the House of Representatives jesterjay afternoon. The Hon. Mr Allen stated that the revenue for tile year 1911-12 was £11,032,514. 'llie total increases un-, acr ihe \aricuj headings in the expen- ] diture for. tho previous year amounted to £997,202. The gross public debt at the end of che limaii'jial year amounted to £B4, .353,913. The not debt amounted to j £82,193,310, and was made up as I follows:—Public Debt, £65,344,685. State Guaranteed Advances £16,848,625. The Public ' Debt had been jicivasett by £3,270,791 during the year. A prospectus of the £4,500,001 .o.iu c. us laid o.i tile table of tin House. The Miiiiistor of Finance said that it was evident that we had to pay a higher rate of intcir.eit for our -wan.-;, and thai there was nu.o prospect of the interest rate falling in the I immediato future. LOANS TO LOCAL BODIES. The Government lias under conoid- | eratioiii a modified system of loans U. local bodies, somewhat ■resembling tlu ■.Ad system under which the smaller .v..',l weaker local bc.-d:e<> would for ur gent work connected with roads and bridges, receive loans at a comparatively low rate, the Stato bearing i. portion of the burden of providing for the interest and s.oiving fund; oiici; a policy would, it is evident, relieve the roads and bridges votes on the-' Public Works estimates. PUBLIC SERVICE SUPERANNUATION. The income during the year ended 31st December, 1911, amounted to (£134,165 17s Id, including £23,000, the annual subsidy from ..ue Government. Legislature would be introduced in the present (session to in-jivas-e the annual subsidy. I tiACHERS' SUPERANNUATION. \ The actuarial examination of this fund has beoa completed, with the result mat the jiv..ua-ry reports that, iu addition to the annual subsidy oi CiiAk) now be:ng paid, further subsidies of £7720, £10,090, and £12,520 will be the minimum likely to be required tor the years 1911, 1.912, ana 1913 respectively, and he reci-m meeds that th e present subsidy be increased by £IO,OOO per annum for . each year of the current triennium. The necessary provision will be made ! to, meet this;, added responsibility. , RAILWAY SUPERANNUATION. The Government has no intention or uust.i'oYing the benefit derivable by ! the railway employees through the operation of the - ct, which provides for their superannuation. At the ....au ...ii.. .l -o ,iiso tnat the country should know when it enters upon ~..liei.i. o vi u . t i.'tspoj-ijimlilies they entail arid) Parliament sould make provision that the charges which must, ultimately come upon the taxpayer should be known, in order that the taxpayer of the day should shoulder his fair r.har-3- of the 'burden and not \ leave tho whole liability to posterity. With "tli;s cod in view, the Government intends to have an actuarial examination of the R/iilway Superannuation Frad .made, tnus bringing it into line in this irespec- with the Public Service and Teachers' Superannuation schemes. LEGISLATIVE COUNCIL REFORM. The Legislative Council Act of 1891 provided that • thereafter appoint,,;...us, which, under the Constitution Act has been for life, should be for a term of seven yeiuvs. Of die members appointed for life before .1891, only seven now have seats, and there are thirty-two members appointed for dxed terms. The principal objection to the basis established by the Constitution" Act was Mat members holding life a.ppointm:Gi".<t.y were not isuf-ftcien-j'.'y impressed with the importance cf political chr.inge.D desired by tho constituencies and advocated by members elected to the House. What- I ever may have been tne force of that objection-, the method adopted in 1891 | hi's proved to be even more unsatisfaetor.' in it*" results. After atrial 1 of twenty-one years that method stands condemned. The alternative which the country now demand-, is the direct election of the secand chamber by the vote of the people, and to effect that change a bill.has been prepared, which will be introduced in the Council during the present week. That bill creates two constituencies —the North Island and the South Island, the latter including Stewart Island. The total number of councillors to be ultimately elected is fixed at forty—twenty from each island. The elections will be held on the same day as those for the House of Representa- j tives, and at die same polling-booths, < separate returning officers being em- | ployed as in the case of the licensing polls. Every elector entitled to vote in an election, for the House of Representatives will be entitled to vote in the election of .Legislative Councillors, each elector voting for the latter purpose in the same electoral district "in, which he is eintiuled to vote for the election of the House. The electoral rolls for the House in each ■island will thus constitute in the aggregate the electoral role for the election of Legislative Councillors will be held under the proportional system. Each elected councillor will hold his seat for the term of two Parliament's of the House of Representatives, onehalf of the total number retiring at each election.. At the first election held under this system ten members, only from each island will be elected, and at the second election a further number of ten from each island; and the twenty elected at the finst election! will retire at the tlmU of next election, and so on. Provision will bo m-.ide for the filling of casual vi

I cancies. The qualification, for election to tho council will be exactly the same aa that for election to the House. The present nominated (members will continue to bold their eeate until • the expiration of the respective terms of. their existing appointments,' The continuance to this extent of the mominativo system" is- (necessary; but during tho period which must thereby elapse before the expiration of the terms cf members appointed by the Governor it is believed that the effective f'oive derived from direct representation will have great influence co the deliberatirxis of the Council. Duo provision -,vill be made for preserving the full exclusive privileges of the House <i Representatives in all matters involving .uiance. ELECTORAL REFORM. The Government is fully sensible of the groat necessity for electoral reform, and in due course a measure will be submitted for the consideration or members by which the system of second ballots will be. repealed and another method of election substituted, ! ?TAfE-GUARANTEEI> ADVANCES ACT. An amendment of the Advances Act will be mibmitted hamding back to tho office for investment the funds | now held by the Public Trustee. The repayment of the moneys borrowed by the office will be provided for in the same sinking fund as the rest of the public debt. The principal money* repaid by instalments .by pre. <;enb mortgagors will thus be made immediately available for advances to new borrowers, and the necessity for further borrowing m London to supply the annual needs of the DepartI moat will be considerably lessened, LOGL GOVERNMENT'BILL. The 'Government proposes to replace the present method of assisting 'jocal Bodies to construct their roads :uid bridges by a sounder system of inanco and a short bill will be introhiced this session dealing with the lueotian. Th e bill will provide that 'ocal bodies shall be classified accord"ng to their needs, and according to ihe measure of their own efforts to meet these wants. Government will p ropes?, out of public-works moneys .Viisod for the purpose, to pay over [ -o the local bodies sums which they ! . L hemselvos many spend on necessary I works. The sums allotted to the I most needy will be larger than those j paid to the next clays, and so on. ' j These subsidies, it is hoped, will dim- , a:.sh the road'S-anid-ibridgee votes on)' the public-works esitmates, and. finI .illy do away with them altogether. I THE PUBLIC SERVICE. i Legislation will, be introduced which i aims at the destruction of political patronage. It will provide for the adoption of the principle embodied in .he lawa which regulate the Public ' Service of the Commonwealth of Australia and cf seme of the Australian! ib.itC'3. A commissioner will be ap- 1 I pointed who, with nts assistants, will' | be responsible to Parliament for apj pointmenus to the service, for promotions in the service, and for the general organisation of the various de- I | partmental staffs. Provision will be j made for the encouragement of merit, and for the introduction of some uni- j form principles governing promotions, •increases'of salary, holiday and sick leave, and other matters pertaining to tho good government cf the service. _ j The opportunities of advancement for young men cf ability will be multiplied by extending the sphere within I which promotions may take place. Fori instance, instead of ao officer-is prospect of promotion being limited to his) I own department, he will bo given 'greater facilities for becoming a candi- | date for advancement in other branches of the service. (RAILWAYS. The Government is determined to ' invite applications in London for the j I position of general manager, rendered vacant by the . retirement, after 17 j years' faithful service, of Mr T. Ron- i ayne. ..-'.-! RAILWAY CONSTRUCTION. j The construction of main lines of ■ railway will be prosecuted- with such vigour as the funds at the disposal of the Government will permit. As to other lines of railway, it is proposed to try the experiment of adopting, some cheaper form of construe- I tion without altering the present gauge. CUSTOMS. The Government has decided that, owing to the short time at its disposal, there is no likelihood of .its being able to introduce into the House this session any proposal to revise the Customs tariff. # The total amount cf graduated tax derivable from estates of an unimproved value of less than £30,000 will not be increased; the amount raised from estates which are in excess of that value will be considerably in. ex-ccj-.s. of the amount hitherto paid by those estates. Tho bill will provide that the 2-5 per cent, additional graduated tax. which is now "imposed on estates of £40,000 or more in value shall be "made to apply to estates of £30,000 or more in value. Attached to this statement will be found a table givimig some particulars which will enable honourable members to realise the effect of the new Act as compared with teh old. Advantage will be taken of this opportunity to grant a concession to widows who are in indifferent circumstances, and who a.re maintaining families, so that in future they may be relieved within certain limits of payment of land-tax. The graduated land-tax is not considered by the Government the only means of producing closer settlement, and the Lanid for Settlement and Land Settlement Fh> ance Acts will be utilised to aid the great work of settlement. The Government have also had underconsideration the advisability of inducing closer settlement by encouraging the hr eglandowner to break up his es-

tate, and hopes next year to bring in further legislation to effect this purpose. \ VALUATION OF LAND. It is the intention to introduce amendments to the Valuation of Land, Act in tho direction of twurinig greater accuracy in distinguishing between tlie value of land and the value of improvements; under tho existing law it is found impossible in practice to do so. The amendments which will be proposed will enable the land value and the value of improvements to be apportioned in an equitable manner so as to ensure an assessment fair to the State and to the individual owner, and will apportion, more fairly than at present, the burden of taxation betweem owner and tenant. PENSIONS. - It is proposed that in future the administration of all New Zealand opinions shall be placed under one head. In accordance with the promises made by the Government!; in, the (past, an amendment to the Oldage Pensions Act providing for tho payment of pensions to women at the age of sixty years will ,be circulated tliis session. Commencing at the age of sixty years, pensions would be paid on the following .scale: Maximum pension at age 60 years, £2l; age 61 years, £22; age 62 years, £23; age 64 years, £24; age 65 years, £26. The total number of women who will | be afforded relief under this new proposal i s estimated at about 10,300. .In addition to the above proposal the Government has under consideration an Invalids Pensions Bill, which is designed for the purpose of assisting those unfortunates who have 'been permanently incapacitated for woTrk-j either by accident or by reason of be- ' i'ng invalids, and who are not in receipt of either an old-age, pension or I a widow's pension. I An amending bill will be introduced extending the benefits conferred by the Widows Pension) Act of last year j 'to any woman whose- husband, is anj : r.ima.e of a mental hospital within J the meaning of the Mental Defectives Act, 1911. Payment on account of children born out of New Zealand, but whose parents were, afc vae time of their birth, domiciled ini New Zealand, will also be provided for. Strong feeling having been evinced in connection with the Military Pensions Act of 1911, which compelled, may of the old soldiers desirous of obtaining a military pension to comply with the conditions of the Military Pensions Act, the matter is being care fully inquired into by the Government, and legislation will be submitted during this, session to remedy the ■present condition of affairs. An important amendment .to the National Provident Fund is also under consideration making specific provision for the co-operative action of employers and employees for the purpose of insuring workers in groups. THE MAGISTRACY. I 1 An attempt will be made during ! the next session to place the stipen-1 diary magistracy on a more satisfactory footing. It is proposed to classify the magistrates, appropriate salaries being fixed by law for those in. each division., and t l -" present system of.vctiivv L.'.ir.iial !::.:" ;jes abol- ] '■bed. ' ■ I TH-K AUXIN G INZ "SI RY. I To gr/.d-m-.'aing'iiirlustry, which has' been such a potent factor :>■ the past in promoting the prosperity, of New, 'Zealand, will have tno ryirnatlietic. attention of the Government, and as siistsiDce. will bs afforded wherever it can, be demonstrated'to be genuinely! needed. The <samo remnrtv.. apply to coal-mining. The enormous deposits of coal that are known to exist :,<:■ various parts of the Dominion should prove a great source of wealth in the future, and are worthy'of being effectively developed. ' PUBLIC HEALTH. ' . The Government has in contemplation an extension, of our St. Helens hospitals, and the addition of maternity wards to some of our -most conveniently situated country hcspit.us. By 'these means - it will also be possible to increase the yearly supply of trained midwives, who are especially needed in the more remote parts of the Drcninitvi. It is a)i?o.pr'pr-sec'i to subsidise medical associations with, a view to encouraging efficient and active medical men to cottlo in the backblocks. INDUSTRIAL LEGISLATION. It is intended by the Government to introduce this session an 'amendment of the Industrial Conciliation and Arbitration Act which will go in the direction of altering the constitution of the Arbitration Court, .so that, instead of one judge of the Arbitration Court, eacli Supreme Court will preside over tht Arbitration. Cxu't in the district in wn-icli lie is resident, except in cases where the Domnicn awards are asked for cr r.re bei.-ig dealt with. Instead of making permanent representatives of the employers- associations or industrial workers' unions members of tho court as at present, it is [intended to provide for expert representatives from each side in the trade or industry affected, who will sit with the president in the hearing of cases coming before the court. Another important amendment will be provision for a secret ballot for the ; decision of important questions by industrial 'unions of workers or by employers' association.?. , LAND LEGISLATION. It will not be possible this session to deal with all the policy matters arising out of the land question, but a Land Bill will be introduced, which, among other proposals, will include a new method of acquiring land for settlement purposes and of settling such la ! nd on the deferred-payment system. There will be no increase of the Dominion's indebtedness; the settlers

r will have security of teniure en easy terms, and landowners will receive a> fair prico for tho land required for closer settlement. The Government •>, of opinion that the experiment referred to will be well worth trying, and may lead to a more eatisfactory .method of breaking up large estate* than cither of the systems in. operation at present. There will also be provision for an amendment of the ballot system, so as to check speculation, and give preference to those whohave failed in two or more ballots. EXPERIMENTAL FABMS. It is intended practically to reorganise the Fields and Experimental Farms Division of the Agricultural Department. The Government is. of opinion that the experimental farms can be made much more useful to the agricultural community than has been the case up to the present, and special attention will be given to the training of young men in scientific and practical agrieuture. For this purpose it will be mecessary to procure asinstructors men specially trained in the higher branches of agriculture ami with a thorough knowledge of stock. In this connection the aim of the Minister of Agriculture is to establish at least on© agricultural college in. each island, on tue lines of the Hawkesbury Agricultural College in. New South Wak& and the college afc Dookio in Victoria, and the Government believes this cam be done without materially increasing the annual expenditure of the Agricultural Department. ■ There is- no intention tocome into competition or interfere with the excellent work which is being done by the Lincoln Agricultural College. Very moderate fees will be charged to the students, but it is intended' to make an arrangement by which scholarships for higher agricultural education may be tenable at our agricultural colleges, or, in the meantime, at our farms of instruction. Ift the way of opportunities for education in higher agricultural methods New Zealand has Tip to the present been behind l other English-speaking countries, but Parliament will be, given an opportunity of removing this drawback.