THE FINANCIAL STATEMENT.

Wairarapa Daily Times, Volume XIII, Issue 4153, 1 July 1892, Page 2

THE FINANCIAL STATEMENT.

A Summary.

The following is a auminary o£ the Financial Statement delivered by the Colonial Treasurer (the Hon. John Ballance) in Committee of Supply last night : Mr Thompson.—l am glad to be able to oongratulate the Committee upon the result of last year's figures in connection with the ordinary revenue and expenditure of the Colony, The figures express in terms which cannot fail to be understood that the spending power of the people has increased, And that a more widelydiffused prosperity prevails than existed for a long time previous. I shall allow them to toll their own story, CONSOLIDATED FOND. Ordinary Revenue Account, Revenue and Expenditure of the year 1891-92.—Theestimatedrevenuefrom ordinary sources was set down in last year's statement at £3,986,600, to which had to be subsequently added £5,000 tax on totalisator receiptß and also £2Bi',Boo from debentures issued for sinking fund increases during the year. These figures give an estimated total of £4,278,800. The revenue actually received amounted to £4,861,08716s Gd, or £87i287 16s 6d more than was estimated. The principal items of excess were from Oustoms(£flo l 27l),Railways(£7,99o), Miscellaneous (£4,864), and Property Tax, together with other small excesses (£4,326). On the other hand Stamps produced £14,050, Beer Duly £2,202, and Depasturing Licenses £3004 less revenue than was estimated. Passing on to the ORDINARY EXPENDITURE

of the year, the estimated charges after providing for the supplementary estimates amountod to £4,219 : 532, The actual expenditure was, however, only £4,192,947 6s sd, or £26,584 18s 7d less than was estimated, Interest and sinking fund were underwent by £17,380, owing principally to an over-estimate of the amount required for payment of interest on 8| per cent stock, and on debentures issued under " The Government Loans to Local Bodies Act, 1886." Subsidies to local authorities were also over-estimated by £17,289, the local bodies not having put in their applications to the extent they did the previous year. The Ministers of Mines aud Lands have effected a saving of £7,521 on the votes under their control, principally made in the stock branch. In the Defence Dept, a saving of £6299 has been effected, of which Police contributed £2279; other departments contribute small savings amounting altogether to £13,026, These figures produce a total expenditure less than the estimate of £61,485. Under the permanent Acts jthere has been an excess oE £23,076 arising from an unJer-estimato of amounts payable to officers of' the Civil Service for loss of office, The annual expenditure has been exceded principally in the Postal and Telegraph .Departments, which shows an excess of £7586. Other amounts and services not provided lor btiug the excess of expenditure over the estimate to £34,900, the result being a net saving of £26,584 13s 6d.

THE LAND FUND ACCOUNT. The actual revenue amounted to £102,240 15s 6d, while the estimate was £91,710, resulting in an excess of £10,58015s 6d derived from caßb sales, The estimated expenditure was £118,174, but the actual figures were £120,033 5s 4d, or £1857 5s 4d more than the estimate. It is now my pleasing duty to inform the Com r mittee of the results of the past financial year so far as they affect the REVKNOE ACCOUNTS

of the colony. The actual receipts amounted to £4,161,086 ISa 6d and 1 the expenditure t0£i,)92,9i7 Si U, wiling in an excess ol tevenueovet l expenditure of £168,140 10 a Id. Tin's j uojount bus, however, been reduced in accotdanoe with my promises in my last Financial Statement; by applying £BO,OOO iu aid of construction of roads and bridges, paid out of the Public Fund Account, and so reducing this surplus of, the year's transactions to £121,608 2s lid, a result which cannot fail to bo as gratifying to the Committee as it is to me. After having used £150,000 to pay off our floating debt, as I indicated would be done in my statement made in June last, putting the two amounts together, (£121,608 2a lid and £42,96515s Gd) I arrive at a net surplus on the 3let March last of £165,672 18s sd, which is sufficient demonstration of the slas> ticity of our financial resources and affords ample proof of the care exercised by my colleagues in the sdminißtratration oi the Departments committed to tbem. PUBMC WORKS FUND.—PART 1. In order to simplify the accounts it was determined to amalgamate parts 1 and 8. The balances therefore on the 31st March, 1891, were taken together and became the balance of part 1, amounting on that date to £299,015 4s 4d. In addition to this there was the asset of £62,974 1b 2d under section 21 of the Government Loans to Local Bodies Act, 1886, These two amounts produced on available balance of £861,989 5s 7d during the present year, Farther debentures issnod under the Eoads and Bridges Construction Act, 1882, were converted and inscribed at a present value of £1904 7s 6d under the Government Loans to Local Bodies Act, 1886, and became an additional asset of the fund. Debentures amounting to £64,000 were issued under section 81 of the last named Act and the proceeds were accredited to this fund. Some miscellaneous amounts were also paid in, amounting to £1,63412s 9d. As I have already mentioned in my explanation of the expenditure of the consolidated fund £30,000 was transferred to part 1 in aid of the ways and means, to assist in the construction of roads and bridges and to open up blocks of land submitted for sale. On ordinary departmental services £212,482 5s 2d was spent, and in accordance with my promise of last year £IOO,OOO of the released sinking funds was used to extinguish a portion of our floating debt. The total charges amounted thereiore to £412,482 5s 2d. The Greymouth Harbour Board having obtained additional borrowing powers to the extent of £50,000, debentures were issued for the advances already made to the Board, and the temporary assistance which had been given was thus placed upon a satisfactory footing;' Qn the SletMarcb, 1891, the available balance of thfs fund amounted,' to £25jj,107, and during the past year the sum of £f 0,180 0s |d ' was' ex : pended, leaving a balance of £376,97, fj 19b 8d for former approprjatipfi. The liabilities are set down at £6lj,Bofj Vttl.ii-' '. CONVERSION OPERATION. Further papers will be laid before

[ youshowing wbatbas been effected during the past year, while the statement of the conversion account itself exhibits the operations very fully. Ashonorable members are doubtless aware Colonial Stooks wore very depressed during the whole of last year; Consequently it whs difficult to efiect sale of our 2£ per cent stock at anything like a reasonable rate. Prices have now, lam glad to say, considerably improved and I am advised that busU ness has been, done as high as 96, whereas the point touched last year wasas low as 91, ex. div. Such low quotations were, of course, never an* ticipatep when (he conversion proposals were initiated. Indeed, the selling price was looked upon at a minimum of 96 so as to represent a par value for debentures of £IOO converted into £lO4 of stock. Correspondence has taked place between the stock agents and the Government with respeot to tbe possibility of making good by the issue of new stock the loss sustained by selling our stock below 96, but the stock agents, supported by the Agent-General, did not consider a. further issue could be made for this purpose,. It may therefore become necessary to ask the Committee to make some provision out of the Public Works Fund to cover the loss sustained in tbe conversion account; A large conversion takes place this year. £42,600 due on 16th January and £4,214,100 due on 15th April of 5 per cent debentures become convertablo into 4 per cent stock at the respective value of 110 and 107, Tho operation will result in the public debt being increased by nearly £900,000, but there will be an immediate saving of £80,600 per annum for interest. , GOVERNMENT LOANS 10 LOCAL BODIES. I To the 31st March, 1892, £885,000 had been borrowed for the purpose of ordinary grants to local authorities. An additional sum of £89,000 of debentures was also created and the proceeds transferred to the Public Works Fund, Part 1, in payment of the asset of that fund amounting to £89,878 8s 9d. A further sum of £BOOO was also raised under the provisions of the Government Loans to Local Bodies Act Amendment Act, 1891; Section 8, and this amount was paid Over last year in partial reduction of the cost of road making within tbe Marewbenua and Waimarino Blocks which had been proclaimed as set apart for settlement.

THE PUBLIC DEBT. The public debtor, the 31st March, 1891, was £38,830,250, in respect of which the charge on the .Consolidated Fund for the year 1891-82 was i £1,892,929. On the 81st March, 1892, the debt stood at £38,712,068, being £117,282 less than it was on the 31st March, 1891. the estimates. The estimates for tho year ending 31st March, 1893 have been prepared with great care, The expenditure proposed amounts to £4,161,397,

Land Fund Account 1892-93.-The estimated revonue for the current year consists of cash sales £44,000 and sales on deferred payments £55,000. • This is less than the estimate for last year and less than the actual revenue received, which amounted to aboutLlo3,24l.

Ordinary Eevenue for the year 1892-93.-1 have estimated the ordinrevenue for the current year at the sura of 1/4,045,800 which, with debentures to be issued against sinking fund increases, (L 280.800), brings the total estimated revenue up to the sum |of L 4,526,100, against L 4,361,085 received last year. The Railways have been put down at L1j140,000 instead of LI ,121,990 received lasl year or an increase of LIB,OOO. :

The estimated results of the yea 1892-98.-As I have already stated the net surplus brought forward from last year amounted to J1G5.574. After paying off £IOO,OOO of floating debt and timkrfmg £BO,OOO to the YnUioty'orks Eimd for construction of roads and bridges, and after hiving made good the deficit of £16,532 in tho Land Fund aooouut the eatimated amount of Eevenue for the Year is shown at £4,326,100 making a total revenue of £4,491,674. The estimated expenditure, as I have shown, is £4,161,397 and deducting this from the revenue we have an estimated surplus of £330,277 at ihe end of the present financial year, subject of course to any supplimentary estimates, ACQUISITION OF NATIVE LANDS. The time has, I think, arrived when the Native Lands which are rapidly increasing in value from the progress of colonisation going on around them should pay the same taxation ns other private land, or a certain proportion of them should pasß to Government at a fair price and be used for settlement. What Government may do is to acquire some of the territory by purchase, It is proposed to submit to Parliament for consideration a meabuio intendod to provide for acquisition of Native Lands to the extent of £50,000 a year! LAND AND INCOME TAX. The Committee will no doubt be glad to learn some approximate results of this Tax. The estimates of £40,009 from business and L15.D00 from employment will he reaohed. The estimate of 147,000 for companies will probably be exceeded, Graduated Land Tax may be set down as equalling the estimate of L 60.000. I am happy to inform lion, members that the result of the ordinary tax on land has beep so far satisfactory that there will he a surplus under this bead which will seourea smallexcesson the whole scheme. BUREAU OF INDUSTRY AND LABOR. The Bureau of Industry, which was founded in June last, has fully answered the anticipations of the Government. 2974 found employment up to the beginning of June, of whom 2000 went to private employment and 974 to publio works, and have readily turned hands to any class of labor open to them. The Govern? ment have proceeded in accordance with the intention of the Minister of Lands to organise a DEPARTMENT OF AGRICULTURE, It will be the duty of the Sec., relary to collect and distribute information on subjects connected with agriculture among settlers by means of lectures and pamphlets and generally to study and promote the welfare of the farming community. Aid has already been given the dairying industry and it is proposed to continue giving instruction in the subjeot, Complaints have been made in a few instances of false packing and branding, <nd it is the intention; of the Government to introduce a Bill dealing with this and other matters appertaining to this important industry. FOTOBE PUBLIC WORKB. I have propounded in places a I financial and shown the necessity for weanjng.this Colony from servile dependence on foreign dealers in money, \ do cot thjnk jt would, be wise tp attempt to raise another Loan in the English money market,' At the present time our securities are a» high as those ol any Australian Colony, and this Stan-

[dard has been reached probably because we have boldly announced the polioy of not offering our fiiends any more paper for a period. The same objection, however, that applies to foreign loans does not apply to bor- 1 rowing within the Colony, arid II believe it possible to place a moderate! Loan at a reasonable rate of interest} without difficulty. We must continufl to open up land by means of monen spent on roads and bridges and takM the railways forward to points where! they will tap districts of high producing capacity. The Government have come to the conclusion that a Loans can be avoided by devoting Bufficienffi out of the Burplus revenue of the consolidated fund for the year, to carry on puhlio works at a rate that will satisfy the march of progress. The sum of £200,000 will accordingly be transferred from the surplus revenue to the Pnblio Works funds in convenient amounts fum time to time within the year. The Government hoped to be able to deal with the anomalies of

the tariff, ; but in the presence of a great mass of details, the number of important measures to be dealt with and, the urgency oE a state of transition in carrying into effect tbe new taxation we have been compelled to postpone the question.

PENHI POSTAGE. So essential do we consider that no revenue should be parted with at the present moment, that we have fvTP poned reducing the postage. I may be allowed before conoluding to refer to the alleged

DEPARTUBK OF CAPITAL iron) the Colony. It is diffioult to obtain accurate data reßpeoting the raovemeula of private capital, and I shall not venture to indulge in guesses, There is no reason, however, to suppose that there was any unusual flow ofcapital either out or into the Colony, and 1 have found no evidence of the rate of interest increasing. At one time I thought the agents of foreign loan companies had formed a syndicate to decry the credit of the Colony in order to raise the rate of interest, but it was the result of selfishness at the prospect of a little taxation maintained later on by some genuine alarm at the consequences which it was stated would ensue, From what Ihaveeaidbnthis question I desire that it may be understood that the only safe policy for the Colony is one of self reliance, one which fosters oolonial enterprise creates a colonising spirit, which recognises that the capitalist, equally with the laborer, must be identified with the progreßa of N.Z. The Parliament of N.Z. has shown it prefers the interests of the people it represents and 1 cannot believe it will retire humiliated and beaten before the menaces of a sordid self-interest which resides outside the sphere of its dominion, CONCLUSION. In conclusion, I have noticed at some length the policy of self-reliance on which m have entered and it will be unnecessary to do more than remind you of tho state of affairs from which we are trying to emerge, and of the opinions entertained of the Colony in the capital ot the Empire. It is not more than five years since the London Standard wrote of New Zealand in there terms: " Here is a colony wasting millions of loans because it could not pay its way without them—A colony in the true sense is not what we find but a soil in grA of speculators, a people hudara& into towns dependent upon Fublio Works for subsistence, a land of banks and mortgage companies, a community whoso very life jb jobbed away on the Stock Exchange," The indictment is fierce and bitter, and overdrawn, but to some extent unfortunately it was not absolutely unfounded. Parliament may in spite of owty possible resistance Am the /and w/iicu is stiff in too grasp of speculators, It may commence to erect the structure of financial independence and at length restore to the people their heritage, free bom the hand of the spoiler.—l sincerely thank the Committee for its attention.