THE BUDGET.

Wairarapa Age, Volume XXV, Issue 10713, 7 August 1913, Page 5

THE BUDGET.

REVIEW OF THE|FINANCES. A HAND&OtME SURPLUS. PROPOSALS OF THE GOVERNMENT. (A Summary.) The Financial Statement ,was 'brought down in the House of Representatives last night by the Hon. f James Allen, Minister of Finance. * The revenue for the year was £ll,C 734,022, and the expenditure £lO,D 48,404, showing a surplus of £785,-

61 Th e actual revenue exceeded that -of 1911-12 by £701,478. The estimated expenditure was £11,229,004, and the actual expenditure £11,082,038, which was £146*966 'below the estimate. ' The actual expenditure for the year Exceeded that of the previous year Bv £741,670. c ■ The balance brought forward on April Ist, 1912, wae £807,276. The •excess of receipts over expenditure was £852,232. This gave a total of " £1,459,508. A sum of £750,000 was f transferred to the Public Works Fund, leaving a balance • on , March' 31st, 1913, of £709,508. During the year Treasury bills to : ?the amount' 6f £775,000 >vf lxs Issued " *nd repaid. " • The Public Works.Fund showed receipts (including £2,505,002 in loan money' amounting to £3,457,551, and ' -expenditure £2,830,810. , Tho net, liabilities On 80th June, 191,2, were £3,142,920, . m against .£1,901,611 at March Slat, 1913, and 1 £2,008,184 at June 30th, 191?. , The gross public debt at the of the financial year amounted to £90,060,763, of which £46.188,493 liad been borrowed for public wtmcs. Approximately 4 £55,000,000 has been utilised in such works as construction of railways, telegraphs , ; and telephones, advaaoes to settlers, purchase ' of land for settlement, etc., which Vare directly reproductive investments. The net debt amounted to £87,457,121, there being a sum 0f,,£2,- , 603,642 in sinking funds. Owing to the borrowing of the four-and-a-half-millioii and the three million loans during the past year, the public debt "ha« increased by , £5,706,850 since March 81et 1912. It is proposed to amend the Public Revenues Act, ia order that -Treasury bills may be issed m London. During the finanaial year the sum of £750.000 wa« transferred from the Consolidated to the Public Works Fond, makmg the total amount of ; revenue transferred to the Public .Works Fund since 1891, £9.280,000. A amplification in the publication of the public of the Dominion haa been introduced. 1 The ceßt of raising the £3,000,006 loan in London will laid b«fore the House as soon as the final accounts are received from tlio High Commissioner. The loans falling cfiio between 1514 , and 1920 amount to £21,800J58. Loans amounting to ,£9,£w0.865 will be due in 1915, and £298,800 next year. The 1915 lon its include the whole of the £4,500,0<X) loan of 1911, and £3,142,000 of, the £5,000,090 loan 1910 not con verted. .It is anticipated that .satififju-tory arrangev ments will be made when the proper ; time comes for raising tho money. The reserve securities " hold by the ■ Government in London amount to £BOO,OOO, and these aro at. the present time earning interest, and are unpledged. The charges made by the Baqk of England fdr the management and inscription of our-stock in London amount to close on £'20,000 per annum. ' ' -b

Proceeds of sales of land will in the future be devoted to the purchase and settlement of other lauds. The rate of interest on Treasury debentures has been increased from 8$ per cent, to 4 per cent. The Treasury borrow**! 1 £805,300 from the Post Office last year, ae against £2,094,100 in tfye previous year. The public debt extinction fund now amounts to £300,936. A proposal will be submitted to amalgamate the Loans to Local Bodies account with that of the Loans to Local Authorities branch of the State Advances Office. As a result ,of the work already done by the Public Service Commissioners; it is evident that considerable economies can be effected in many Departments, while at the same time efficiency can be increased. The Public Service and Teachers Superannuation Funds are both in a satisfactory condition. The increased annual subsidies will not be further increased during the next three years. The Government is obtaining an actuarial report on the condition of the Railways Superannuation Fund, with a view, if need be, pf placing it on a sound basis. An Electoral Bill will be during the present session. < The report and balance-sheet of the Advances to Settlers branch shows a , profit for the year of £73,864, and that, of the Advanoes to Workers branch a profit of £11,263. Amended legislation is being introduced which will consolidate and simplify the present law regarding State advances. An amending and consolidating Act relating to the raising' of loans by local bodies wall be introduced. In view of the very heavy programme of legislation provided for this year, it is doubtful if Parliament will have time this session to adequately consider the important subject of 16cal government reform. It is intended, however, that proposals dealing with local government reform twill, if possible, be circulated this session for the consideration of members of Parliament and local bodies. The receipts of the Post and Telegraph Department showed an increase of £78,169 over the previous year,

rfjlwhiiiii i • and the expenditure an increase of £80,246. The interest earned by the raifr ways during the year was the second highest on record, namely, £4 0s 9d per oent., and that notwithstanding large increases in the wages of the statf. For the first time in the history of the Stamp Department, the revenue for the year exceeded £1,000,000, the actual receipts being £1,062,487. The land and income tax amounted to £1,191,630, which exceeded the estimate by £91,630. The land-tax receipts show an increase. of £81,620, and the income-tax an increase of £14,059. It is intended during the present session to subrr.it a proposal for graduating the income tax on a more equitable basis. The new scale will be prepared on the same principle as the graduated land-tax of last session, which provides that the increase in the rate will be uniform with the increase in value, so that for ea-n j pound of increase in taxable incone j there shall be a corresponding increase in rate. The smaller incomes will pay slightly less. The Government has .tinder consideration a proposal to introduce legislation this session which will enable financial assistance to be granted to association of fruit-growers, for the purpose of erecting canning-factories and providing cool storage. f The questions of establishing an agricultural college and experimental farms will be referred to the proposed Board of Agriculture. 1 It is proposed to effect a number of amendments in the machinery provi* i t its if the in-i'i -i 1 . Won arid Arbitra- «»*> Act I» is proposed to include in the measure provisions which will-' enable the parties to all industrial di I'ti'tV* (wti. *<n*r affeck .-.-registered unions or not) so as to prevent as far as .possible, strikes and lockouts from taking place. ' Legislation will be introduced this year extending the powers of local bodies in the direction of enabling them t6 acquire land and erect homes far. workers. , The National Provident" Fund has made a distinct forward movement during .the year. At the present j date the membership numbers over j 3800, whileft the fund amounts to approximately £15,000. ■ The amount paid in old age pen* Bions last year was £415,749, in widow's pensions £22,113, and in military pensions £3678/ Thu Shipping and Seamen Amendment Act, 1912,; having the assent of Hia Majesty the King, was brought into operatioh on (May Ist last, v With a view to stimulating trade between Australia and New Zealand, the Minister of Customs recently visited Australia, and successfully negotiated b reciprocal tradle treaty., with the Government of the Commonwealth.' Since this treaty was concluded, the position of political-par-ties in the Commonwealth has materially ehanged,, and it is not possible f6r the Now Zealand Government to take any further action in the matter until the policy of the new Commonwealth Administration ]a disclosed; r FVv this uaspi practice of bringing down the proposed new Custom's, Tariff with the Financial Statement will not be followed upon this oocasiqn. A consolidating Customs,. Law Bill will be introduced tins session. Owing,to labour troubles, the output of gold doas not compare with that of previous years. The coalmining industry continues to prosper. A sum of £44,966 is to be written off the value of the State coal mines, and 10 per cent, instead of 5 per oent. to be allowed for depreciation in future. The Select Committee set up to consider the proposals of the Ethelburga Syndicate for buying out the rights of lessees of iron-mining rights had reoommended that the proposals be not accepted. The matter has been brouglit before the Government on a new basis, and the various proposals are to be submitted to a committee of experts for examination and report. The past year bad proved the most profitable in the existence of the State Fire Office. The expenditure on mental, hospitals for the year was £148,979. The Native medical servioe is being re-organised, with a view to obtaining the co-operation of Hospital Boards. Increased accommodation is required at the St. Helen's Hospitals, and it will also be advisable for Hospital Boards to erect maternity wards in connection with country hospitals. It is proposed to continue the practice of subsidising country medical and nursing associations. ' During the past year the area of Crown land miade available for settlement was 337,500 acres, in 2230 subdivisions, or allotments. Since the cilose of the year there has been advertised for selection a further area of 141,500 acres, in 540 allotments.

A Land Bill will be introduced during the present session, and Parliament will 'be asked to agree to a further extension of the freehold policy. ' The area of national endowment land occupied under lease or license at the end of the year was 6,324,608 acres, at an annual rental of £89,559. The total area at present within the endowment is 8,551,250 acres. The unlet area will be prepared for settlement as soon as possible. The total area of Crown lands of all classes held under lease or license at the close of the financial year was 19,544,304 acres, held by 29,532 selectors, paying an annual rental of £698,831. The gross land revenue received during last year was £912,029. Surveyors are busily engaged in sub-dividing suitable blocks of kauri gum lands for settlement. The operations under, the Land for Settlements Act have been larger than in the previous year, an area of 60,819 acres having been purchased at a value of £428,045 Ten Associations have been completed during the year under the Land for Settlement Finance Act, with a membership of eighty-seven, and an area of 11,354. acres, valued at £185,899. Several others are in course of formation. The settlement of Native land during the year has been up to the average. A (Bill giving increased facilities for the settlement of the remaining Native lands will be introduced shortly. A Bill is in course of preparation which will make the collection of Native rates by local bodies easier. A Bill validating the constitution of the Federal Council of the Cook Islands, and containing other provisions for the improvement of the general conditio!* in the Islands will be submitted this session. The tota] expenditure in the construction of new railway Hues last year was £684,190.

It is proposed to invite tenders at an early date for the completion of the Otirai tunnel. It is the intention of the Government to permit private enterprise to undertake the construction of branch railway lines, subject to conditions which will carefully safeguard the, publio interest. Legislation giving effect to this proposal will be introduced this session. The total expenditure on roads and bridges last year amounted to £429,253. It is anticipated that the Government will be in a position to supply electric power to the City of Christchurch from the Lake Coleridge electrical works by May Ist, 1914. The Ida Valley irrigation works have been delayed, but they should be available for the season of 1914. A full statement of the position of the Military Forces of the Dominion will bo found in the Defence Report. It is proposed to provide the machinery for an expeditionary force, which will be purely voluntary. A Bleriot monoplane thas been presented to the Government, and; officers are being trained in the art of aviation.

The actual cost of the battleship New Zealand was £1,701,000. The final payment has been made in London. A sinking fund has been established, and now stands at £102,028. This will be sufficient to pay the warship, loan in about seventeen , years. 1 It is the f intention during this session to go carefully into the report of the Education Commission of last session.

References are also made in the statement to special schools, school buildings, arid the Magistracy; The Government intends introducing a Bill this session dealing with Town-Planning. The scope of the Immigration Department is being extended. The number of immigrants who arrived in the year 1912-13 was 3928, compared with' 3300 in the previous year. New offices are to be secured for the High Commissioner in London. They will bo situated on the Strand, next to, the Adeiphi Theatre. The Government has decided that legislation will be introduced this session dealing with the Bank of New Zealand. * i.) It is thai the revenue for 1913-14 will be £11,789,602, and the expenditure £11,679,674. The Publio Works Fund will require to be replenished during the current financial year, and it is proposed to ask Parliament to authorise a loan of £1,750,000, to be raised in London. During the next eighteen months, short-dated loanfc amounting to over £8,000,000 must he repaid. The Government has determined on a policy of progressive development of the 'Dominion's resources, and will' not fail to make provision for, the necessities bf settlers, workers, local authorities and publio works generThe record of land settlement during the yeaf has been exceptionally good. The Government hopes to add to this good reoord by increasing the opportunities for close settles- - and by attracting the worker to make his home in the healthy surroundings of country life where work is available for hhn.