GENERAL ASSEMBLY.

Westport Times, Volume IV, Issue 678, 30 June 1870, Page 2

GENERAL ASSEMBLY.

THE FINANCIAL STATEMENT. (BY ELECTRIC TELEGRAPH.) "Wellington, June 28. The Financial Statement was delivered this evening. The following is a brief abstract: — The Colonial Treasurer commenced by asking the indulgence of the committee on grounds of the early period at which the statement was- made, which had entailed a very large amount of extra labor. The financial measures of last session had answered their purpose. The curtailment of the ad vanced system had enabled a large sum to be brought to account at the end of the year, which would otherwise have appeared as a charge against this year. The Annuities and Life Insurance Act had been brought into operation with great success, and measures would be proposed to increase its usefulness. The total debt on the Colonial account, less sinking fund accrued, was four

million and two hundred thousand, of which five hundred and twenty.eight thousand was represented by Treasury Bills. Those bills would remain a floating debt until November, 1874, when it would be finally decided whether the amount should be paid off or added to permanent debt. Last year's statement was delivered before the accounts were completely made up, but computations have been closely borne out. He wished to remove any misunderstanding arising from what he said last year for the large apparent excessive expenditure arising out of the advanced system. That system was to blame and not those who administered it. He would endeavour to apply in the present statement as rigorous a criticism of the position of affairs as might be applied by an impartial, non-responsible for proceedings. After paying off liabilities and

engagements on account of last year, and bringing to account one hundred and fifty thousand pounds, Treasury Bills authorised, there would remain a surplus of seventy-six thousand for the present year, that amount was exclusive of sixty thousand pounds overdraft which had not been paid off, as the overdraft was merely a convenient mode of anticipating the revenue distributed over the Colony,, and there was virtually no cost for interest on account of it. The Trust Fund was in a satisfactory condition. The state of the Post Office Savings Bank account was a pleasing testimony to the frugal habits of the people. The special fund account was very complicated, owing to a number ef old balances; it was believed that twenty-five thousand pounds would be recoverable from the special fund, to be paid over to the consolidated revenue, exclusive of the balance to credit under the New Zealand Settlements Act, which would be applied to pa3>ment of the Treasury Bills issued • under that Act. A separate banking , account is to be kept for the special fund in future. The financial year was not yet ended, and only an esti- ! mate could be made for nearly the whole of the present quarter. All liabilities payable on account of the year's services being included, there . would be an expenditure of Beventy- , four thousand pounds in excess of , votes, but on other votes there had 1 been a saving of twelve thousand. The seventy-four thousand, including forty thousand expenditure under special , order for defence purposes, were satis- . fied, but those excesses were independent of credits to votes which would ' reduce them by a considerable sum. Although incurring the excess of forty . thousand was quite legal, he was quite i willing to admit that it was a violation 1 of the understanding come to last ses- ' sion, that Parliament should be consulted if the two hundred thousand

pounds voted for contingent defence was exceeded, but it must be stated in explanation that, as soon as it was ascertained that there would be excess on the two hundred thousand pounds, Parliament was convened to meet at the earliest possible moment. The Colony had been saved any contribu-

tion for the detention of troops. The year's revenue had yielded as closely as estimated; the total expenditure would exceed the total receipts by thirty-five thousand pounds, but against the deficiency it must be recollected that the expenditure included twenty-four thousand for advances to Southland, fifteen thousand for "Wanganui Bridge, ten thousand advanced to Patea settlers, and twenty-five thousand for roads in the North Island. To disprove the statement that we were borrowing money to pay ordinary charges, he had analysed the expenditure of last years, he found that ordinary expenditure amounted to four hundred and forty two thousand, repayment of debts by sinking fund forty-six thousand, exceptional and reproductive expenditure three hundred and thirty-four thousand; the General Government share of the revenue amounted to five hundred and forty thousand, so that the total of ordinary expenditure with sinking added, was considerably within the amount of ordinary revenue in those computations. The Defence expenditure was regarded as being extraordinary expenditure. The Government submitted that, when in eighteen sixty-three it was agreed to borrow money for defence purposes, and a large annual charge was thereby im-, posed, it was rendered impossible for the Colony to continue to pay out of the revenue that annual charge, and, also to pay out of the revenue a heavy current war expenditure. Out of borrowed money was the only plan by'

which to fasten upon the North Island a fair share of the liability paid out of current revenue, and the Defence expenditure was finally settled year by year between the two Islands, according to their share of current revenue, but if it was considered that the North Island would, when settled, contribute fully an equal share to the revenue, it would be seen that, by defraying the war expenditure out of borrowed money the ultimate cost would be more equally distributed ; that plan would leave the surplus ordinary revenue to bo employed either for reproductive purposes or to enable taxation to be reduced. He would now describe the proposed colonisation operations, the principles in which the proposals were cased. j First, both Islands should aid in the working. Second, both should share in its results. Third, that as few political changes as possible be made. Fourth, that allowances should be made for the varying conditions, and circumstances of the different parts of the Colony. The wants of the Colony were public works, in the shape of roads and railways, and immigration, the two being most closely allied. It was proposed to enable the Provinces of the North Island to acquire a landed estate to the amount of two hundred thousand pounds, the cost to

be charged upon the Provinces, and the lands or their proceeds to be used for railway and immigration purposes. It was proposed to spend four hundred thousand upon roads in the North Island, and to give an equal amount to the Middle Island to be spent exclusively on railways, and to be divided amongst Provinces in proportion to the receipts from consolidated revenue. It was proposed that, during the next few years, a system of railways should be constructed in the North Island from Auckland to Wanganui and Wellington, via. Taupo, with connection to Napier and New Plymouth. In the Middle Island, from Nelson, also to Picton, Amuri, Chiristchurch, Timaru, Oamaru, Waikouaiti, Dunedin, Tokomairiro, Molyneux, and \* inton, with connections to Tuapeka, Clyde, Cromwell, Arrow, and Queenstown. Those railways should be commenced from a number of different points, and be constructed as cheaply as possible, the work being continued as traffic demanded, payments should be made in money only guaranteed, or by subsidy, or by land, or by two or more of those modes. The General Government to enter into contracts for construction of lines at wish of Provinces, cost to be charged to Provinces, or to be defrayed by land, but half amount of stamp duties to be allocated specially for railway purposes. The line should be so devised and constructed that a considerable portion of the cost could be defrayed out of returns as works were pushed on. It was proposed to authorise two huudred thousand to be advanced by the Provinces for water supply on the Goldfields. Sixty thousand to be spent on telegraph erections, and a million and a half on immigration. The total expenditure of ten millions would be spread over a few years, but it was computed that the greater part of that sum would be defrayed out of laud or be represented by guarantee of interest. Immigration should be regarded as essentially a reproductive work. The total amount, proposed to be borrowed during the ten years, was six millions inclusive of any loan obtained from the Imperial Government. The gratifying announcement of our Commissioners about a million guarantee received, but conditions not yet known. Immigration, it was proposed, should be conducted systematically under varied form to make it suitable to peculiar circumstances of the Colony. Each Province to be supplied with immigrants at the request of the Provincial government; half of the cost to bring the immigrants out being defrayed by the Province by an annual charge of thirty shillings per immigrant. Calculations prove that all these proposals (supposing they come sooner or later under one management) could not entail upon the Colony liabilities which would be beyond the power of the Colony to meet. He was not of opinion that increased taxation would be necessary, indeed, he proposed that the tariff should be reduced; but, even suppose the construction of railways and the introduction of immigrants did necessitate some amount of direct taxation, after the lapse of three or four years the benefits accruing would fully compensate for such taxation. He repeated, however, that he was not expressing an opinion that such taxation would be necessary. He laid it down as indispensable that immigrants should be carefully selected; that the Colony, and not the Mother country, must have the sole charge of the work; and that the Colony would not consent to accept the refuse population of the Imperial country. In carrying out these arrangements specially with a view of dealing with the taxation, it became imperative that the partnership between the Provinces and the Colony should be dissolved, and a fixed payment per head of population be substituted; but, in order to preserve existing relations and to prevent inordinate .demands for Government sources, it was desirable that the charges upon Provinces should be kept just as at present, and the capitation allowance would be simply a substitute for the moiety of revenue. It was proposed that the allowance should bo two I pounds per head for the first year, I and should be reduced two shillings a I

year for five years, the allowance then remaining at thirty shillings p9r head to be added in the case of "Westland, on account of large proportion of adult population. For the Maoris a special allowance of three thousand pounds to Auckland and to Hawke'rf Bay, fifteen hundred to "Wellington, and five hundred to Taranaki. The Q-overnmeut proposed that fifty thousand should be annually allocated to provinces in proportion to their population to be divided as subsidies. As to road districts the use of that sum for the specified purpose to be carefully guarded, and the yearly distribution to be approved by the Assembly. The total proposed payments to provinces including the fifty thousand for road districts would be fifty two thousand more than the provinces had received this year. A statement of separate results of change showed how very unequally and unfairly the present system had worked, for, under it Canterbury had been an extraordinary loser and Westland a large gainer. Westland was supposed to have absorbed a great deal of Nelson revenue. Under the capitation allowance scheme Auckland would gain eight thousand four hundred —Taranaki six thousand six hundred—Wellington eight thousand nine hundred —Nelson eight thousand five hundred —Marlborough five thousand four hundred —Canter-

bury twenty-five thousand —Otago and Southland together two thousand six hundred —Hawke's Bay would lose one hundred and "Westland would be loser by thirteen thousand. Against proposed yearly reduction of capitation allowance down to thirty shillings must be set the fact, that after this year one half of stamp duties would be set apart for railway purposes independently of that allowance. Upon the important subject of reciprocal arrangements with other colonies and countries, it was proposed to avoid technical duties as to imposition ofj deferential duties by taking power by I Act to pay bonuses on certain imports] according to agreement, not to exceedj in any case the amount of duty. Afl] an assertion of the principle it was proposed at once to give bonuses on the importation of Australian wines. He! considered that the tariff required adjustment, and without raising tions as to free trade or protection he' was willing to admit that the amount! of revenue required should be the test! as to the tariff. Therefore, while pro* posing some increase of duty he also proposed decreases as far as possible.] The articles on the two sides were on] a par aa to popular use. It was proJ posed that the increases should come: into operatian at once but that the decreases should not take effect until the first of October next. The alterations were bacon and hams—from one penny per pound to three half, pence; beef and pork, salted, from 1 two shilling per cwt. to four butter, from one penny per pound te three pence; cheese, from one pennj per pound to two pence; biscuits] from three shillings per cwt. to sis shillings; potted meats, from half 8] crown per cubic foot to five shillings jams, from half a crown per cubic foot to five shillings; fish, potted and preserved, from half a crown per cubic foot to five shillings; fish, dried and salted, from two shillings per cwt. to five shillings; oysters, preserved, from half a crown per cubic foot to five shilling ; flour, from free to one shilling per hundred pounds ; wheat, from free to nine pence per hundred pounds; barley and maize, from free to ninepenee pel hundred pounds; Oats, ditto; rice, from two shillings per hundredweight to half a crown; maizena, from one shilling per cubic foot to two shillings; Groats, ditto, ditto ; hay, from free to ten shillings per ton ; chaff, free to one pound per ton; eggs, from free to one shilling per cubic foot; cordage, from three shillings per cwt. to six shillings ; soap, from half a crown per cwt. to three shillings and sixpence; blankets and rugs, from three shillings per cubic foot to five shillings; leather, other than sole, from one penny per pound to two pence; saddlery and harness, from two shillings per cubio foot to four shillings ; furniture, from sixpence per cubic foot to ninepence; doors and sashes, from one shilling each and per pair to two shillings; timber sawn, from one shilling pet hundred feet to two shillings; shin, gles, laths, palings, rails, and posts, doubled in each case; wine in boN ties, from four shillings per gallon to five shillings per gallon. The proposed decreases .were —Sugar from nine and four pence per cwt. to eight and four pence ; bags and woolpacks, now paying eight pence per cubic foot, to be free ; iron fencing, now Is per cwt., free; iron gates, nails,tacks, rivets, and tools, now variously charged, free; hollow-ware, now 4s per cwt, free ; weighing machines, now 4s per cwt., free; sanh weights, now 4s per cwt., free ; gad irons, now Is per cwt, free; iron safes, now 4s per cwt., free; steel, now Is per cwt., free ; axles and arms, now 2s per cwt., free ; grinder/ and lasts and pegs, now Is per cubic foot, free ; copper manufactures, now 4s per cwt., free ; japanned and lacquered metal ware, now 4s per owi, free ; papier mache ware, now Is per cubic foot, free; liquorice, now 2s 6d per cubic foot, free ; alum, now 3i per cubic foot, free; arsenic, now 6i per cwt., free ; spirits of tar, now 6d per gallon, free; pitch or tar, now 1< per barrel, free ; American enamelled cloth, now 5s per cubic foot,free; baß seating and upholsterers webbing and springs, now charged various, free; brewery and distillery plant, now charged various, free, A bonus, under reciprocity arrangement already dfr

scribed, of 2s per gallon of Australian wine in bottle, and Is per gallon sucb wine in wood. The Government proposed that future defence expenditure should be defrayed out of borrowed money. That provision should be taken for five years. The amount for first year being one hundred and eighty thousand pounds, for second, one hundred and sixty thousand, and for each of the other three years one hundred and fifty thousand. The expenditure for the ensuing year is estimated at four hundred and eightymne thousand pounds for General Government purposes, and four hundred and fourteen thousand for -Provincial services. The latter sum to come out of the five hundred and sixty-one thousand payable to provinces. Total estimated expenditure one million fifty thousand pounds. Estimated revenue one million fifty-six thousand pounds, and leaving surplus of five or six thousand on year from various sources, recoveries, &c, there would be in addition other seventy-two thousand available for year, making surplus of seventy-eight thousand at the end of the year. That surplus he proposed to leave to be added with next session, when a decision CDuld be come to whether to pay off provincial debts or reduce taxation. If the House desired it, Government was ready to carry out the various proposals this session, so impressed were the Government with the importance of the measures and their necessity for the progress of the Colony ; but if the House perferred it, they were willing to go to the country on their proposals. He hoped hon. members would not permit any feelings entertained against the Government to interfere with the consideration of proposals which, it was believed, were to raise the Colony from its present depressed state to one of prosperity, and enable the population of the Colony to do justice to its large resources.