PARLIAMENTARY.

Wairarapa Daily Times, Volume 4, Issue 1102, 17 June 1882, Page 2

PARLIAMENTARY.

FINANCIAL STATEMENT.

In iComiittee \<jf Supply,-Friday, 15th Juno, 1882, by the Colonial Treasnrer, the Hon. Major Atkinson Mb Hamlin,—l am presenting the ■Budget thus early -because' the Government are anxious that the House should have ample opportunity of carefully considering and discussing the financial position, and requirements of the colnny. In furtherance of this object, which I feel sure will meet with the approval of the Committee, I hope to place tho Estimates iii tho hands of the honorable members not later ' than tomorrow, and I venture to -express a.hope that the Hoiso will consent to the appointment of an early day for going'into supply, and not permit the postponement of so vital a question as ways and means until the ond of tho session, when honorable memboi'S are often' unable,' frdm mere physicalexhaustion, h giye the subject' that attention which its importance demands ■ The Committee will be glad to learn that the reports which {have been in-circulation for, some time past to the effect thai there is a considerable surplus standing to our credit upon the transactions' of the year aro substantially correct, I shall not therefore trespass to-night to'so largo an extent upon the patience of ; honorable members as I have been compelled to do on former occasions. ,My statjinent will bo short, but I must still ask for the indulgence of the Committee while submitting for its information the somowhat dry'details of the financial results of the last annual period and the proposals of the Government for the presen; year.

EXPENDITURE-. OP THE ORDINARY BEVENUE OF THE YEAR 1881-82.

The expenditure for the year under permanent Acts of the General Assembly was estimated £1,670,919, including £1,499,318 for interest and sinking fund, whilo the amount voted for'departmental services was £1,757,660. flie. total estimated expenditure sanctioned by Parliament was therefore £3,328,579.' The actual expenditure was £3,278,820, being £49,7/50 less than estimated amount. There are no items of this expenditure which appeal' to call for special remark. Honorable members on referring to the appropriation account presented to the House pursuant to Public Eevenues Act, will be able to-see the services in resneet of which'the expenditure has been less or more tf'an the amounts voted. The outstanding liabilities on 31st March, 1872. amounted to £1(15,394, at the close of the preceding finan cial year the amount was £ 165,514. I may inform the Committee that included in the liabilities on 31st March last is a sum of £24,000 for sinking fund to 13th March, 1882, in respect of the: £BOO,OOO unsold debentures of that portion of the loan of 1870 amounting to El ,000,000 which is guaranteed by the Imperial Government. The Imperial Act provides for a sinking fund of 2 per cent, per annum on the entire amount of tlio guaranteed portion of the loan or so much of lta? is raised for the time being, commencing at the dale at which the whole of the loan is raised or at the expiration of ten years from the passing of tho Act, which ever date happens first. When tho first remittance of sinking fund was made, namely for tho half year to the 13th March, 1881,-' it was considered that provision was required only for the sinking fund payable iu respect of .the debentures for £200,000 which had been sold aud not also for the debentures for £BOO,OOO which, though created, had not been placed in circulation. Tho question was, however, r« considered upon the receipt of a despatch from the Secretary of State for the Colonies to his Excellency the Governor, and tlie Government determined to provide sinking fund for the whole guaranteed loan of £1,000,000, Remittances have now been made accordingly to the Trustee of the fund, OB.TN'AIiY ItKV-NUE OF THE YEAR 1881-82, ■ ■The estimated revenue of the year, exclusive o! tho revenue derived from sales of land was £3,297,050, Tho actual amount paid into the public account was £3,488,170, being £190,520 .iu excess' of the ■ estimate, Hon, members will find on reference to the comparative return which will lie appended to this Statement, that we are indebted to tho Customs l'ovonuo for the larger portion .of -this excess, £125,107 having been received from that source. Tho revenue from Stamp duties was £11,145 in excess of the estimate. Miscellaneous receipts were also in excess £34,243, while from depasturing' licenses, rents, ,te„ we obtained £56,852 more than »vo-anticipated. On the other hand the amount derived from the Properh Tax fell short of tho estimato by £19,025. Of this sum £9270 has yet to coir.e in, £2200 represents the amount estimated to

bo received from Building Societies, which afterwards rendered exempt; a'ul £7556 is an over estimate. Tho revenue from Eailways proved to be £25,266 less than the estimate, but hoi. members will be glad to- learn that (he net receipts from railways, which were estimated at £3GJ,7M anion,ited to £368,927, or £4,183 more than estimated. LAND SAMS OF THE YUAII 1881-82.

■The following course was. approve 1 'arliamcnt in tlio session of 1880-81:-A eparate account of the land sales has been :ept, The expenditure charged against th( und during the year amounted to £338 076 ncludmg £136,801 for subsidies paid t oeal bodies, The amount voted fer denarl nonta! services chargeable on the land fuiv cas £154,510, tho amount actually oxpendei ras £137,297, being £17,213 less than th r ote. Tho liabilities outstanding on th list March, 1882, were £25,188, as agains 337,561 on tho 31st March. 1881. The rc eipts for the Tear from land sales were esti nated at £333,000, tho amount actuall; eceived and paid into tho public accoun ms £317,063. of which £282,136 was fo nnds sold for.cash, and £34,927 cash instal nents for sales on doforred payment. Addim o the receipts of tho year tho balance a redit of the land fund account on tho 31s tali. 1881, amounting to £32,373, am leducting the expenditure we have a balano m this account of £11,360 at credit on tin list March, 1882, PUBLIC WOBKS FUND, The appiopriations ou this account fo he year ended the 31st March last amcuntei o £1,892,554, tho actual oxpenditute, how iver, to only £977,856 including £454,22 or railways. Particulars of tho expenditur fill be found in tho tables annexed to tbi tatement, but fuller information than i here given will be laid before • tho Hons, vhen my hon, colleague, tho Minister fo _ublic Works, makes his annual statement the liabilities outstanding at the olose of th< ear amountol to £880,276, particulars o rfiich will also be found in tho tables ap tended. During the year special receipt ,nd recoveries amounting to L 42.378 cam o the credit of the funds, and on the 31s darcb, 1882, the balance remaining unex •ended, subject, however, to the liabilities iave just mentioned was L 924.865, consist pg of cash in tho. bank of New Zealand j637,64(S ; advances in the hands of offceri if the Government, LGO,3lf); debentures o he loan of 1870 guaranteed by tho Imperii) lovernment, L 135.300; amount invested ii m !?^ re 3 Zealand Governmout ■A4 iOOO; andtemporary advances made on cer ain other securities, £37,600. The balance i he credit of the fund on the 31st of Maroh 881, was £1,860,373, ■ and on the 31st March 882, it was £924,865; tho extent to whiol t was diminished during the- year wa hereforo £935,508. These figures she* hat the fund lias been carefully husbandec o as to extend the fcxpeliditure over th lme we had ag eed, not'again togo upoi he London market. Hon. members wil ibserve that there was sufficient in hand oi he 31st March, 1882, to carry on publi porks without break or stoppage until abou he end of next February, at the same rat it which thej have been' prtisooiited durin he last year, included'in the" liabilities o he Public Works" fund at end of the year bum' of £338,876 for the; purchase o lative, lauds, particulars' of which : wil ihortly be.'iplaced beforeTthe 'House' by. riv :olleague; the Native- Minister, who wii jjfio state the proposals of Government wit] reference t) our fufcurb polioy in the pur chase of Nativo lands. In the meantime, mav inform .the committee that the amoiin wljicli will be rquired this year to complet the purchase of those blocks ; which the Q'

vernmenfc havo decided to acquire willow, bably not exceed ,0100.000. The public debt debt of the oolony, amount ts 29,165 511 subject to the. deduction of £,2057242 for accrued sinking.funds. On SlstMarcb ' 1882itbe debt was £29,946,711, andS : siuking funds had increased to £2,266 418 the nett debt being thus £276,802,938' and ■ £572,f12t ) more than it was the previous ' year. This increase of debt is-tlius explained, Of the Treasury-Vbills. ~wliicK',- : on: • the* 31st' of March,. 1881, formed the Public Works funds sales Wj tho amount' of f431, 300 have taken,place, These Bills had been taken up in 1880 with money standing to the credit of' the fund, as there was then a largo balance not wanted lor immediate expenditure. Requiring temporary investment, they have now been sold, and the proceeds paid into the Puulic Works fund. As money- was required for works authorized by Parliament the debate has also been increased during the year by further advances, amounting to ' £3C4,700 obtained in London upon the security of the debentures, 'of lwiii of 1870, guaranteed by the; Imperial Government with reference tythe £8,000,600. .Imperial', guaranteed debentures,.! may perhaps remind the committee that although in speaking of the amount of Public- Works fund, they are always treated as cash. They, have lis a matter of fact hover 'Mii ! sold, but used to provide working balance, to save' interest,- by borrowing upon them.frpm time' ,to time only such sums as are required, According to the state of tho Public Works fund, I may mention on the other hand that debt Ins practically .been reduced' during ' the year by the addition of £209,176. to the accumulated sinking fund, to 'which has been added £14,800 for' debentures/of the ' North Otago District, Public Works loan of 1872 redeemed, 'tho' net increase 1 in tho total amount of debt, being %is as I havo said £572,024. : > -i;-.

SAVINGS BANKS AND THE GOVERNMENT INBURANOK DEPARTMENT; ' .-'

i Before I proceed, Mr Hamlin, to gum up • financial results of the year 1831-82, -it may i not be out of place for me to state a fe f w facta I, in connection with the Government savings ■' bank and Mo insurance department ty way i of illustrating the steady' progress, of the i colony, the rapid advancement of those in- ; stitutions, and the growth of habits of prudence amongst.the people dhri.ng tho last teN years. lii 1871 witli a population i of 2G.G98, the amount-standing at the credit of open account in'the Government'savings hank was £357,654. These.acconnts were--10,549 in number, and tho average amount at credit of each was,£33 18s.:. In tho savings hanks established Hinder " The Savings Banks. Act, '58," the. fetal' amount ' at credit of depositor on 31st December, 1871, was £97,312 distributed over 3,726 accounts, the average amount at credit being £26 2s 4d. I'here \m • thus ii tot al sum of £454;967 in savings banks in 1871 at the. credit of persons, ijhe average amount for each being £3l 17s sd, : On the 31st December, 1881, the population of the colony was 50G.910. There tfero 51,005 open accounts in the Government savings banks, aggregating aii amount of £1,232,788, or an average of £24 3s 4d at credit of each. In other savings banks there were on the same date 10,046 open accounts, the total amount at credit being £310,727, or an average of £.ll 17? id for each account. The total amount of "deposits ■in the saving?. .banks in the colony, at-tho end of' the"'.year 1881 was' th'ereforo £1,549,515,. belonging to 61051 depositors, with an avei due of £25 7s 7d at cred'.t,.'as against £454,966 'inlß7l, and .14,275 ' .positois, with all..average of £3117s 5d,. flu population during tho ten years haVj'ng' uicreased' from 266,986 to, 500,910., Th.eegf flgMves are w'oll -worth careful consideration* ofliou. members, they show the remarkable extent ti which advantage of Savings franks is being-taken by people for whoso benefit they weie eslabl ahed, the population barely doublrd itself since 1871,'- w.ljil'e; iho number of depositors has, increased' nearly five-fold. Intimately connected with tlo I subject of the prudential savings of tho,community, are the questions of life assurance, and growth of Government Insurance', a .Department established in 1870, at a lime when public confidence in many, English Assurance Companies was severely shaken and with the avowed object of gning' B the assured the absoluto security of the colony The Department lias since exhibited a progressive advancement, which warrants thostatement that the experiment sanctioned by Legislature twelve years ago-'haT^now proved complete success, This scheme may- ' bo justly described as tho only 'successful :■ institution of the kind set on foot by any' Government, ' .

PItOI'OSKD HEW LOAN.

I lmvo now, Mr Hamlin, only one moro subject to deal with. Although last, it is by no means least in importance. T refer of course, to the question of a new loan! Wo . have first to consider whether a now loan is advisable this year; secondly, if the first question be answered in the affirmative, how much will it bo. desirable to borrow? Now with, regard to tho first, question,, we must, in order to arrivo at a reasonable conclusion, con aider the state of the public works fund, and the. amount wo can prudently expend per annum, I have already said that tho balance on publio works fund on 31st March last m £924865, with outstanding liabilities at; that date of £541,400, exclusive of liabilities: on tho land purchase account, for which wmust add at least £100,000; so that in addition to the £541,400 .which is in courser of expenditure itoder' existing contracts and' authorities, there only remained in hand at the beginning of tho financial year about £283,485 for continuation of the works already begun, and for new works for which liabilities.have not been incurred or appropriation made. Wo thus sea that if no authority for a further loan is granted tliis 'year our spending power on publio works for one year and three quarters, after paying for the Outstanding and engagements to which I have refeued, will - only amount to £283,465, because if a loan Bill were passed next session tho mono 7 could not be raisedbefore about December, 1883, and the Government are quite determined not tb enter into engagements in anticipation of raising money at a particular date. The question then narrows itself to tbis: Is it prudent at the present time, and under thj present circumstances of the colony, to boirow, or ou(»ht we to be satisfied with a total expenditure of £924,865 jn''' the twenty-one months,, commencing with the current year? Sir, the Government are fully awara of the' responsibility they incur in placing before the.Commitfes their answer •- to this question, They recognise dearly tho principle that -befpre- the public debt is in. creased the ga ; n to tho colony shall be Been' to be more than comcnsurate with the increased liability, and they believe that a oasa within this rule has now arisen, Thrr think that our ordinary finance being satisfactory couditi6n ,arid oui'main trunk line of railway being still incomplete, it is now prudent to raise' a fresh' loan'for the purpose o^coijipletingthese, railways, or carrying tliema stage nearer to completion,. and for certain other definite and, important public • • works. In this opinion 'the Government are strengthened by tho fact that the railways already made are'now paying practically 4 per cent, annually on the amount expended 111 their construction, and that they aro steadily improving in this respect. The Government therefore, sir, recommend that a loan should be raised, but only if thft money can be borrowed at a reasonable rate- ' of interest, and authority of Parliament-will be asked to empower' the. Government if necessary by postponing works, 'so as arr'ango expenditure to enable them to wait: for a favorable, market. v Fe.have now to. consider what amount should be raided 'and ' this must bo decided by two considerations.. I# The amount' which can bo profitably expended on necessary or ditectly reproduce tive public works. 2. The,'amount upon; which we can afford to pay interesti without: placing - undue' burdens • upon tho people of tbo'colony,, Korl am afraid that there are so many necessary, or directly productive works oUy." waiting to dono ■ for warit of cash? to do them that we shall' find no practical limit intliatdirecfion^and 1 in this fact ließj no doubt,.the cause of our * far too lavish expenditure, in the past, 'From the past.wia sliould tike -warning .'and proceed at a •_we havs beeii'idoing.^o'n^ the> • past ten : :

foi the future in tlic expenditure of borrowed money to works' of necessity, or to works wmon are directly reproductive, and strictly limit the aaiount spent yearly upon such works by our capacity to pay tho interest wtnlelerable ease.' It is, in the opinion' of tM Government, of importance that toe colonyishould steadily pursue & provesai,ve policy, and that our , main trunk -liiie should be pushed on as vigorously as is compatible with, the meanß at our disposal. Tlia taking into considoratien all circunSiancea of the colony and acting upon principles' which I have|just laid down have determined, sir, to proposcfto Parliament a loan of £3,000,000, to bo raised and expended at a rate not exceeding L 1,000,000 per t annum. My honorable colleague, the Minister for Public Works, when he makes the Pnblio Workß Statement, will inform tho Committee in datail of tho items of tho proposed expenditure, arid of tlio. rao'do' by which wo hope to confino tno expenditure to fpecifio works determined iipofi by- Parliament before the money is borrowed.

And now ; Mr Hamlin,! have done, ~ Tho Committee, I am sure, will not I e disappointed at the shortness of my Statement when it isremembered thatthis is the natural and appropriate result of the simplicity, in keeping the colonial accounts which' w'eji'jivo been enabled to adopt. I will only add one word. In 1879 I stated to tho Coirimitteo fully and fairly the position of the colonv, neither concealing nor exaggerating tho grave difficulties which had then to be met; and I pointed out, tho obvious remedies. That statement has olten been characterised, especially by : ihose who had taken the least trouble to master it, as too darkly shaded, as giving too gloomy a view of things j though it has never been attempted to disprove the facts and tho figures which I then adduced, Sir, I venture to say that, except to far as tho gloom was in the facts themselves, it never had any existence; it certainly was not, of my importing. It was prudence, not folly, to. look our difficulties fully in the face: 'it would have been folly, and not prudence, to doubt that wo coidd overcome tliem. The Government and this House had full confidence not only in tho abounding vitality and vast resources of the colony, but (which was no less important) in thewillingness of the colonists to make tho necessary sacrifices; and that confidence has been amply justified by the facts 1 have just had the honor to lay before tho Committee, And as prudence aud economy, and a cautious and well-coiiMderedadvance in public works funds became available, was our rule then and has been since, so it should bo now and in the future. I have full confidence, Sir, that! following that rulo faithfully, we shall not only maintain, but,' as the resources of the country become developed, we shall steadily increase the present satisfactory condition of our finance. After, speaking for an hour and ten minutes, the hon, gentleman sat down amid applause,