MAJOR ATKINSON'S FINANCIAL STATEMENT.

Wairarapa Daily Times, Volume 2, Issue 291, 16 October 1879, Page 2

MAJOR ATKINSON'S FINANCIAL STATEMENT.

(Fn.m the N. Z. Times.) Major Atkinson undertook to show the country and the House <m Tuesday night the financial position of New Zealand. He did the work admirably. He stated his case simply but forcibly, and was listened to with the. most profound attention throughout. So far as the income and expenditure of the last financial year is concerned, there was but little to add to or detract from what was already known. The expenditure on nine departments rf the service, which might have been cut down, was shown to have increased from L 866.000 in 1877-78, to an estimated expenditure of L 903.000,; nd an actual expenditure of L 953.000 in 1878 79. The expense of the Native Department has risen from L 34.000 in 1876. to L 43.000 in 1877, and 58,000 in 1878 79; but it was pointed out that whereas solaries had formerly been set down at L 19.000, they now appeared at L 15.000, but contingency expenses had meanwhile risen from L4OOO to LIO,OOO, which showed that the House no longer exercised the same control over this branch of'the expenditure as formerly. It was not until Major Atkinson pointed out the enormous difference between the revenue and expenditure for the coining year as estimated by his predecessor that his speech caused much surprise. According to that estimate there would bo a deficit of L96200D, to meet either by retrenchment or extra taxation. However, the Colonial Treasurer went on to show that ho was now much better able to estimate the revenue for the coming year than his predecessor had been. The reve tnte returns for the first quarter of the financial yeir afforded him a new and trustworthy guide in preparing his estimates, and after a careful consideration of the position he was led to anticipate a deficit of not less than L 912.030, tu be met by retrenchment or fresh taxation. Turning his attention to the condition of affairs as disclosed by the returns for the September quarter, he showed that the expenditure exceeded the receipts by L 339.030. The late Government had issued no less than L 400,003 worth of deficiency bills to meet current expenses, which was the full amount allowed to be issued by law, Nevertheless the new Government found, on coming into office, that no provision had been made to meet the payments of the subsidies to the locd bodies which were now due, or to meet other payments, some of which were urgent. It was this present necessity which compelled the Government to ask the House to pats a temporary measure for the issue of an extra £200,000 worth of deficiency bills. In the Public Works Department Majoi

Atkinson ittiit.lt- some very startling revelations. They were challenged both l>y Mr Macandrew and liy Mr Ballance. Hmvcver, the Colonial Treasurer declared rJt.it the Inures had been supnliod to liiin iiy the heads of the denariments, and he had every reisoii to believe them strictly accurate. He staled I hat, to meet (lie outstanding lialiiliiies of the Public Works Department to which the country

was ommitted up to the end of the Si p tember ijiiiirier—including the advances outstanding—a sum of 1.712,000. f )f this, .ilii'iit half-a-million would have to be taken nut of the five million loan. Thu Lite Government had also entered into engagements which would necessitate the pawneut, on public works, up to ;he 31si December, of a further sum of L 733.000, and hal also entered on works which would, if carried out, entail a further expenditure of L9)0,003 up to June oO'h. Consequently, the country was already committed toan expenditure of L 2,160,00*0 out of the new live million loan,

In regard to the purchase hy Government of native lands, the expenditure in the past was shown to haye been very h°.avy, but the prospective liabilities are simply enormous. Money has been expended upon native lands, in part pay nient of the land, to complete the purchase of which would require a further expenditure of about a million sterling. When the public have once realised the fact ',hat a keen judge of finance baa declared that a deficit of 1,900,000 has to be met either by retrenchment or taxation during the next year; that the land tax imposed last year will barely realise L 100,000; thatlhe income tax proposed this year was only estimated to bring in L 200.000, the gravity of the situation will be recognized. At the present time no class in the colony is in a position to bear a large increase of taxation, It may have been, as stated by Mr Ballnnce,- the intention of the Grey Government to incrense the Customs duties for the sake of raising revenue, but Sir George Grey has always vehemently denied it. It may akn have been the custom of Colonial Treasurers to anticipate the raising of a loan. But such a thoroughly reckless system of finance as that exposed by Major Atkinson in connection with the Public Works policy has never hitherto been even suspected, much less countenanced, If the new loan lumg fire where would the country be? The increased expenditure on postal and telegraph, and on public buildings and domains, may have been necessary, but extravagance in building is one of the commonest and most popular extravagances of spendthrift Ministers, who are anxious to purchase public favor with the public money. Everyone who heard the Colonial Treasurer's statement admitted that it was a masterly eft'oi t, and quite a model of clearness and conciseness; that it showed a perf -ct grasp of the subject, and that it contained as little comment and criticism as was possible under the circumstances,.