Financial Statement.

Wairarapa Daily Times, Volume VIII, Issue 2304, 26 May 1886, Page 2

Financial Statement.

. &.; ■• By the Colonial Treasurer, th Eon, Sir Jnliw Vogd. Mr HAMHN,-The last financial year commenced with- a iiurplus of 1/19,891, and it closed with a surplus of L37,859_ When I made tho supplementary Statement last year, the surplus estimated was L 19.000, but increased -supplementary votes and an over estimate of LB, 800 of tho accretions of the sinking fund dissipated tho, surplus and left, according to estimates of expenditure and revenue, a, deficiency o.f LO2, The estimated revenue lias proved less than it was anticipated by L 1,954, and the expenditure less by L 39,870, The principal reduction on tho estimated expenditure was in the item of subsidies for local bodies, a great deal of it, however, would come in for payment during the present quarter. There was a saving in defence expenditure of LIG,44G, and various reductions in other departments, bringing tho total savinps up to L 100.240, but on the other hand there were excesses of expenditure amounting in all to L0'0,365. The principal items contributing to this amount were interest and sinking fund under estimated L 21,473, charitable aid L 13,984, printing and stationery L 1,622 property tax on account of triennial valuation L2,54§, postal and telegraph, L 2,278, for repairs L 4.742, for bonuses earned by mail steamers in excess of estimate, and services not provided for L 9,238. The revenue as I have already said falls ahort of the estimate by L 1,954. The customs duties were 1/15,175 short, stamps L 4,891, railways L 5,695, marine £I,BBO, and depasturing licenses L13.10C. On the other hand thero was an excess on item registration fees of LI, GOO, and L 37,819 on the miscellaneous item. Of tho latter increase, L 25.000 is due to the sinking fund released under the Public Sinking Fund Act, 11858 on account of excessive accumulation, and LIO,OOO to interest received on public monies. Tho total amount of revenue under wtimata is L 41.539, and over estimate L 39.58&.

LAND FUND. The land fund account had a balance at the commencement of the year of L 31,931, and at the end of the year there was a deficit of L 20.384. This eminently unsatisfactory result is but the consummation of a series of diminished receipts not compensated sufficiently by reduced expenditure. Naturally I have felt myself called on to make a close analysis of the fund, I find that besides the Crown Land Departmental and Survey expenditure charged on the Land Fund, there is debited to it the amounts paid for Crown and Native Land rates. Increases of these rates and delays in the receipt of amounts falling due under the deferred* payment system have lessened the revenue of and increased the charges on the land fund, It was from this fund that the Roads and Bridges Construction Act was to be supplied with means, and.it seems to me that the Act fell through when all chance of money being available for its purpose from the land fund ceased to be possible. There have not been any new loans negotiated since tho House was last in session, but an instalment of the third million ot the three million loan,-and the proceeds of tho million and. a half loan have passed to credit of tho fund since the end of the financial year 1884-5, including the ' balance at the end of that period. The total receipt of the fund amounted to £2,844,160, an amount of £600,000 representing temporary advances of the previous year, was repaid during hist year, and £188,300, district railways, appears on both sides,of the account, the purchase price and the value of the debentures representing it having passed through tho fund. • The expenditure out of the fund during the year wa5£1,287,086. This wi'l leave a balance to credit at the end of March last of £768,780. The early meeting of Parliament will enable a discussion -to be more promptly arrived at regarding a new loan.

THE PUBLIC DEBT AND MAN CONVERSIONS. Tho amount of tho public debt on the 31st March was, as nearly as can be estimated without an exact analysis of the lato conversions, £34,905,222. The amount of the accrued sinking fund was £3,276,873, and the net debt was, therefore, I £31,688,349. Soon there will be no part of the debt bearing interest at more than 4 per cent, and the grateful task will fall on the future treasurer, I venture to predict, of converting the 4 per cents into the 3 ■ and 3J per cents. The House last session did not appear to have any desire to see the deficit oi 188384 speedily extinguished out of current revenue, Viewing the present condition of industrial occupations within the Colony, it may be as well to follow tho example that other countries are setting, and to hold the amount in suspense, It is not desirable to tako £150,000 from the immediate use of the colonists; but lam averse to permanently funding tho deficit, and I propose to provido for it by transferring it to four years debentures, to be held within the Colony. They can be taken up and extinguished as circuru-. stances justify such a course

FINANCE OF lOCAI BODIES, The present Government think it unwise to provide funds for local bodies out of loans raised for colonial' purposes. They disapprove of the responsibility cast on the Public Works Department, or of requiring Parliament to determine the main roads, They do not see (luffioicnt reason for applying to the two classes of "works different plans of obtaining money, and they think a system of finance of a more liberal character should bo accorded to the local bodies. Shortly, their proposal is that on the ratepayers shall depend the responsibility of determining, and of accepting or refusing works, and that when tho ratepayers approve, money should be provided to the local bodies on very liberal terms. These terms are a payment of D per cent, per annum for twenty-six years, secured on special rates, the Colony to be responsible for payment of the principal sum, and to meot it by setting aside yearly a sinking fund of 2 per cent., to redeem the debentures, It is proposed that Parliament should determine from year to year the limits of the amount to be available, to the local bodies, but that in the absence of any other provision the amount will stand authorized at not exceeding L 200,000 annually. It is intended that these loans shall only be for country districts, and that the storage of water for irrigator/ and mining purposes shall bo amongst the objects that local bodies may carry out. I have thus explained to you the-substi-tuto for the Roads and Bridges Construction Act,

ESTIMATED EXPENDITURE 1886-87 The estimated expenditure during the present financial year amounts to L4,070 ; 2C9 which is L 49.155 in excess of the estimates and votes, and L 89.000 in oxcess of the expenditure of last year., Tho increase is fully, accounted for by three items, viz., on education L 20.278 is estimated to bs riquirsd »o# thai last

year, on subsidies to local bodies L39,3(i8, and on working railways, L 87,225. You will recollect that Parliament authorized last session a considerable increase in duties, chargeable on wines and spirits. Notwithstanding those increased duties, the whole Customs and Revenue only exceeded tho Revenuo of the previous year by £3,723. I do not fed' myself justified in estimating so large a Customs Revenue as of last year by about L 5,300. I have to announce that the Government will ask for the loan of a million and a hiilf to be devoted exclusively to railway purposes.