THE COLONIAL TREASURER'S FINANCIAL STATEMENT.

Westport Times, Volume VI, Issue 998, 23 August 1872, Page 2

THE COLONIAL TREASURER'S FINANCIAL STATEMENT.

In the following abstract amounts of money are, fop convenience, generally stated in round numbers. The Colonial Treasurer (Mr Vogel) delivered the Financial Statement on the 20th. He commenced by remarking that he had a more agreeable task than that which devolved upon him last year, for he had not now to speak of deficiencies or of impaired revenue. When last session he referred to the results of the year 1870-71, he led the committee to understand that on the close of the account for that year there would be a deficiency of £76,912, together with £70,000 of overdraft, making a total anticipated deficiency of £136,000. (?) He was glad to say that the deficiency proved to be only £122,000, or £13,000 less than was anticipated ; the reduction being mainly owing to saving in connection with the reserve fund. The House authorised the issue of treasury bills for ££5,000, at one year's date, and a like amount at two year's date, par. tially to cover the deficiency, the balance to come out of current revenue. It would be found that the current revenue of the past year had performed I

its part of t'-ie bargain, and provision would be made this year out of the revenue to inei t the £45,000 increasing bilis duo this year. With respect to loans: £66,000, under the Wellington Debts Act, had been negotiated in Sydney, at a clear nett premium of two per cent. He believed that that was the highest amount ever obtained by-public nego tiations for any of the colonies debentures unguaranteed by the Imperial Government. Of the Immigration and Public Works Loan, £850,000 had been negotiated, and of the Defence and Other Purposes Loan, £150,000 ; making together one million. That amount had been negotiated at home at a premium of four sbillings and two-pence, after deducting accrued interest, which must be considered a very favorable negotiation. Inclusive of the £150,000 recentlynegotiated, there had been raised under the defence and other purposes, £635,000, of which there was charged, under the second schedule of the Act. To Auckland, £50,000 ; to Taranaki, £6OOO ; to Wellington, £17,000 ; and Otago, £90,000. By turning to the second schedule of the Act Hou. members would at once see the nature of the various payments under it. The total under this schedule was £163,-436. Under schedule I- there has been expended £195,588, together with £15,327 for discount and charges ; making together a total of 471,350, and leaving a balance of £158,000 available for expenditure. Of this £150,000 was in cash hi London, £3OO in cash in the colony. Of the Immigration and Public Works Loan there had been altogether £1,600,000 raised. Adding to that sum £37,029, being moiety of the Stamp duties, the total was £1,037,291. Of that sum £711,611 was expended up to the 30th June last, leaving a balance of £925,654; of which £850,000 was in London on the 30th June ; £40,666 was in the colouy in cash ; and £35,017 was under advance.

The items of expenditure under the Immigration and Public Works Loan were: — Interest and sinking fund, £29,000 ; departmental expenses, £24,000; roads in North Island, £120,000; railways, £241,000; water supply, £2,000; purchase of land in North Island, £49,000; immigration, £4000; telegraph, £58,000; coalmines, £500; payments to road boards and provinces, £100,000; Greymouth protective works, £3000; discount and charges, £39,000. Before concluding his remarks concerning the loans, he wished hon. members to understand that provision was made for payment during the year of £66,000, sinking fund on colonial loans. Those payments represented the sum which the colony and the provinces provided for reducing cn« ueui.

On the 30th June last, there was £440,000 in the Trust Fund, of which £387,000 was invested, and £50,000 in cash. On the 30th June, 1871, the amount in the trust fund was £343,000, so that it had increased during the year by £96,000. The Post-°office Savinog Bank fund had increased from £294,000 in 1871, to £363,000 in 1872. Tiiose accounts, it should be clearly understood, were kept entirely distinct from ordinary revenue and ordinary payments; and he had taken the strictest precautions to secure that the interest bearing accounts were sufficiently covered for all accrued interest. He would next speak of the revenue of the year 1871-72. The actual revenue of the year was £1,t07,000, against £99,000 estimated, and £936,000 the actual receipts of the previous year. There was therefore an increase of £71,000 over the actual receipts of 1870-11, and of £17,000 over the estimates. The Customs revenue showed an increase of £25,000 over the estimates, and of £42,000 over the amount actually received during the previous year." The exports during the year had exceeded those of the previous year by £481,000, and the imports showed an increase of £427,000. Amongst the exports, "old had increased £135,000 over the previous year, and wool shows a considerable increase both in quantity and in value. The stamp duties had yielded £SOO less than was estimated, but on the postal revenue there was an increase of £2OOO over the estimate, and the receipts of the Telegraph Department showed a small increase. The total revenue of the year being £1,007,000. There was to be added on account of credit to vote, £2OOO ; treasury bills, £90,000; deficiency bills, £IOO,OOO ; making the total receipts of the year £1,199,000. Still in addition there were. assets amounting to £62,000, so that with receipts and assets the total for the year amounted to. £1,261,000. The years increase, as regarded revenue, and the events of the year as a whole, showed a revival of prosperity in the colony. Goldmining was improving, and wool increasing in value. The land revenue had been largely increased, building was going on all over the colony ; not only are regarded dwelling houses, but as regarded erections for business and manufacturing purposes, and generally much more attention was being given to manufacture of various lnnds. With respect to agriculture, he was under the impression that the State did not know as much of what was really being done or give to it the assistance that ought to be given. During the five years ending 1871, there had been a continuous increase in the value, as per head of the population, of the agricultural produce exported from the colony.

The expendilure during the past

year for colonial charges was, according to the appropriation, £505,000; supplementary expenditure upon colonial account amounted to £520,000 ; capitation allowance to proviicjs, £220,000; excess of payments to provinces, £31,000; deficiency bill paid off, £60,000; liabilities from 1870 and 1871, £62,000; payment to special fund, on account of liability of the previous year, £20,000; half amount of stamp duties paid to immigration and public works account, £37,000. Those sums making a total of £1,014,000 (? £1,515,000). These were still due liabilities on account of interest due in Sydney on the first of July, and interest and sindiug fund payable in Loudon up to the 15th July, amounting to £109,000; reserve fuud £14,000; miscellaneous, £13,000; deficiency bills, £IOO,OOO, Adding all these items together there was a total of £1.250,000 expenditure; which, deducted from the total amount of the revenue, left a balance of £IO,OOO, with which to commence 1572 and 1872. Stating the matter in another wov, the figures stood this, assets, £247,000, against liabilities to the amount of £236,100 ; thus leaving the same balance of rather more than £IO,OOO with which to commence the year. It was to be observed that the full amount authorised to be issued as deficiency bills, namely, £190,000 had been issued, but the greater portion of the amount did not bear Interest, being merely a nominal overdraft at the Bank. Forty thousand pounds of the amount had been taken by the trust fund. Some objection was stated last year to allowing the government to issue £IOO,OOO of deficiency bills, but in reality it was of no assistance to the revenue, the greater portion of it was represented by advances outstanding from the consolidated fund. The full amount was more than represented in the assets. Hou. members would understand, that after paying the deficiency bills, after providing for the unauthorised expenditure of last year, after providing for the full expenditure of the year, after providing for the revenue fuud, and for the liabilities and engagements known to the Treasury, after having in fact provided for interest and sinking fund due in London up to the 15th July, or fifteen days beyond the close of the financial year, there still remained a balance of £IO,OOO, with which to commence the year 1872 and 1873. The Treasurer next described the proposed changes in the system of keeping the public accounts. According to the plan which would be submitted, the Comptroller-General and the Auditor-General would be associated together as Commissioners of Audit, and the Paymaster-General's account would be abolished. The new »j«& wa? K~a w1,...nr) y | M „ n ir»fcin.tod +.r> somo extent. Although it wouid impose upon the Treasury an amount of check to which it had not hitherto been subjected, yet the department would learn to accustom itself to that chock. The new system would answer the double purpose of securing the full authority of Parliament over the expenditure, and of enabling accounts to be made up more promptly than hitherto.

He had prepared some interesting statistics, comparing New Zealand with other colonies. Taking the year 1869, which was the latest for which returns could be found, it appeared that the revenue of the United Kingdom was 65 millions sterling, of which less than 24 millions were obtained under the customs, and 20 millions, the amount of the excise, represented the duties on spirits. During the same year, the total amount collected in New Zealand, •including the taxes collected by the provinces, was £902,000. If there was the same taxation in New Zealand as existed in Great Britain, although the English Customs tariff would not of itself yield so much as that of the colony, the total revenue would be much larger than it was at present. Stamp duties in the United Kingdom represented six shillings per head of the population, or nearly 50 per cent, more than in New Zealand. A comparison of the quantities of high duties, —goods consumed in New Zealand and in the United Kingdom—showed conclusively the wealthier comparative condition of the colony. Of spirits there was consumed in the United Kingdom, per head of the population, per year, one gallon; but in New Zealand the average was two and one-tenth gallons. Tobacco, one and three-tenths of a pound per head in the United Kingdom: in New Zealand, two and six-tenths of a pound per head. Wine : five-tenths of a gallon per head in Great Britain, against six-tenths in New Zealand. Tea: three and fourtenths pound in the United Kingdom, against seven and one-tenth pounds in New Zealand. Coffee : a little under one pound per bead in the United Kingdom, as against a little over two pounds per head in New Zealand. Sugar: 46 pounds per head in the United Kingdom, against 67 pounds in New Zealand. The English tariff would have yielded in New Zealand £643,000, ns against £823,000 actually obtained here for Customs duties ; but if other taxation bore the same proportion to Customs duties here as in the United Kingdom, the total revenue of New Zealand would have been £1,200,000 in 1869, as against £894,000 actually raised during that year. But, besides, the local taxation in the United Kingdom amounted to over fifty per cent, of the general taxation, while in New Zealand the local taxation was very much less. The secret of the apparent heavy taxation in this colony

was to bo found in tbo fact that tho rate per head of the value of imports and exports was considerably higher than it was in the United Kingdom. During tho year 1809 the value of imports into the United Kingdom represented .£9 14s 4d per head of the population, and the exports represent a value of £7 lGs per head, but in New Zealand, during the same year, the imports represented £lB 4s per head, and the exports fifteen £ls 9s per head. Hon. members would recollect that the account of imports represented not merely consumable or perishable goods, but articles of lasting value and means of increasing wealth. During the five years ending 1871, the total value of our exports (? imports) was twentyfour millions; of which, £5,600,000 was the value of non-consumable articles, so that, to that amount, articles of permanent value and means of increasing wealth were added to the colony. By another return it appeared that for the year ending April 1,1872, the value of imports into G-reat Britain, less the value of exports, represented £8 3s per head of the population, whilst in New Zealand, during the same year, and under the same condition, the imports represented £ls Gs per head. The British produce and manufacture exported from the United Kingdom represented a value equal to £6 6s per head ; but the value of New Zealand produce exported from the colony represented £l7 16s per head. During the same year the post office revenue in the United Kingdom was equal to 2s lid per head of the population, as against 3s 4d per head in New Zealand; and the telegraph revenue amounted to sfd per head in the former case, and Is 9d in the latter.

The population of England and Wales in 1871 showed a proportion of males, between the ages of 16 and 65, equal to 28 per cent; whilst in New Zealand, in 1871, the proportion be-. tween those ages was 37 per cent. Turning to the neigbboring colonies it appeared the per centage of persons between the ages of 21 and 40 was 38 per cent, as against 20 per cent in New South Wales and 29 in Victoria. The increase of population during the ten years ending 1871 was in New Zealand equal to 165 per cent, as against 46 per cent in New South Wales, and 36 per cent in Victoria. During the same ten years the increase in the population between tbe ages of 21 and 40 was 162 per cent in New Zealand, 38 per cent in New South Wales, whilst in Victoria there was actually a decrease of ten per cent. A comparison of the exports and imports showed most favorably for New Zealand. Leaving on one side imports, re-exported, aud the value of exports, the result was, Victoria, £l4 J<« r-pr head ; New South Wales, £l2 9s per head; INew Zealand, £2l 16s per head; or, if the native population were included, £lB is per head. Taking exports, the figures were, Vic toria, £l4 lO.s per head ; New South Wales, £ 12 16s per head ; New Zealand, £l9 2s per head; or including the native population, £l6 8s per head. If the principal products of the colonies were considered, the result would be the more striking and favorable to New Zealand. Thus upon the average of the five years ending 1871, New Zealand exported gold to the amount of £lO 18s per head, per annum, of the population, against £7 19s in the case of Victoria, and £5 in that of New South Wales. For the same period New Zealand's average export on wool was equivalent to £6 9s per head, as against £5 5s for Victoria, and £4 19s for New South Wales. The exports of agricultural produce and timber from New Zealan for the same period was equal to 13s per head of the population per year. From Victoria those exports averaged only 3s 4d per head; and from New South Wales, 10s 6d per head. A further sum must be added in the case of this colony for flax, the export of which, including that by the native population was, equal to 4s per head. Much had been said and written respecting New Zealand's oppressive customs and tariff, but if the Victorian rates, including ad valorem duties, had existed here, and if the values were entered the same as at present, we should have raised our customs revenue during 1871, to £781,000 against £750,000 which we actually raised. That disposed of the allegation as to the higher rate of taxation in New Zealand, as compared with Victoria. It was to be borne iu mind that the native question had cost New Zealand five millions sterling, in the shape of expenditure, more than would be required in a colony situated like Victoria, that fact showed how great the resources of this colony really were. It was alleged that the cost of government here was heavy; of course the rate per head of that cost was large, because the population was small. It was especially to be remembered that here the smallest aggregation of population asked for and expected to receive all the conveniences which in older countries were only expected by large communities ; still the comparison of the departmental cost of the Government was favorable to New Zealand. Taking the financial year 1871, the colonial expenditure in New Zealand, exclusive of interest aud sinking fund, amounted to £594,100; the expenditure of the several Provincial Governments for civil service purposes, including education, police, gaols, harbor, and miscellaneous, but excluding public works, was £251,000. Together those Bums '

made a total of £310,003, against anl expenditure in Victoria lor like pur- 3 poses of £1,450,000. Turning to the proposed expenditure for 1872-73,; the total amount on the estimates was £933,830, showing an increase of^ £21,000 on the appropriation for 1871-72. That increase was principally represented by increases in permanent charges, such as £SOOO for intorest of £90,000 of treasury bills, and £II,OOO interest for defence and other pur-j poses loan. Other items going to--wards the increase were the additional amount for members expenses, cost of buildings, now become a colonial charge, and the expenditure on account of Manukau lighthouse; there was; also an increase in the expenditure of some of the departments, such as the telegraph and the land registry. HonJ members in looking through the esti-i mates must decide for themselves what| they would consider as reduction ini expenditure, fairly coming under the] head of retrenchment, or under that ofj reductions, arising from there not be-j ing any necessity to continue certain! services or officers. To the expendi-j ture set down in the estimates there! must be added £208,000 for provincial] capitation allowance, as against] £200,000 last year ; moiety of stamp duties receipts to be paid to immigraJ tion and public works fund, .£40,000 1 treasury bills falling due during the] year, £45,000, being the second in-j stalment of the deficiency stated lasti year, leaving 0n1y£45,000 to be cleared] off next year. There must also ba added the sum of £21,000, which is was proposed to pay to the immigraJ tion and public works fund, in addition to one half of the stamp duties, whicq had been paid over to that account] the £21,000 being calculated to repre] sent fairly the amount of interest and sinking fund on the payments mad( for works completed, and on final payi ments. This would make a total ex. peuditure of £1,060,000. It shoulc be remembered that the capitatiot allowance to provinces representee £BOOO more than was paid last year It was proposed also to relieve" thj provinces from payment of £I9OO i year, for salaries of provincial auditors and £23,000 a year, the cost of inlani mails carriage. These sums togethe would represent payment of £32,001 out of the consolidated revenue to am on account of the provinces more tha: was paid last year. It was not pro posed to continue the extraordinary ai of £50,000, which was last yea granted to the provinces in considers tion of it being alleged that there wer engagements to meet which require that amount.; but £50,000, being tb same as last year, would again be pai to Road Boards. The estimated tots revenue of the year was £1,076,001 Tho principal items were—Custom £82,000; stamps, £80,000; posta £50,000; telegraph, £33,000; judicii tees and tines, £32,000. It was est mated the stamp duties would th; vear yield £SO,OOO, although seven remissions would bo proposed, name! the annual license fee on companie for the promotion of industries an colonisation, such as meat preservin companies, sawmill companies, steatr boat companies, tramway companiei immigration, public health, and fisherl companies. It woull also be propose! to remit the stamp duty upon chequcj of friendly societies, and upon receipt given to them for monies disbursed bj§ them, and to remit the duty on all coil veyances of land in trust for religioul charitable, or educational purposes. t| would also be proposed that the staml on receipts shouldbe reduced to orfl penny. The postal revenue was estil mated at £3OOO more than last yeal notwithstanding the contemplated tM duction of the newspapers to one hall penny. So many newspapers werj now sent by coach which would nfl doubt be sent through the post undefl the reduced rate, that it was not corfl sidered the reduction would diminisß the revenue of the department. Thfi total estimated revenue then waaj £1,076,000, or an increase of £86,00 H on the estimate, and of £60,000 ofl the actual receipts of last yeafl Adding £IO,OOO, the amount of thjg surplus with which the year wafi commenced, there was a total of: £1,086,000, and deducting the totsM proposed expenditure £I,OSO,OO<H there would remain £2500 surpluffl upon the year. A portion of thafi surplus would be required to me'efi supplementary estimates, and un authorised expenditure. It must nlsll be remembered that when the est'M mates were commenced the report og the select committee on public builJH ings had not been received ; wbicfl report contained a xecommendatioH that a considerable sum should he esfl pended on the repair of buildingH Provisions for that expenditure was ofl course not included in the estimated On the other hand there would cerffl tainly be during the year some saving!! on votes, and he was inclined to tbinW that if the House should desire tliatfl further payment should be made ifl aid of the immigration and publiH works account, such a payment coiriH be made out of the surplus. In com elusion he thought he need not appoM gise for the paucity of noval featnrtS and new proposals in the budgeH After the changes during the lasfl three years, it was gratifying to tfl able now to dispense with furthjj large alterations. This was the fourtHj consecutive session in which he lis® made tho Financial Statement, au® when he considered the period coverdHl by those statements ho could not buß

congratulate the committee upon tl present improved condition of affiii of the colony. He hoped th.it he hi avoided creating in the minds of tl

InitteP, anything like au impression the Government took credit not iging to them. The great revival rosperity in the colony was duo to yer higher than that of kings or le. All that the Government ,ed was that when there was a isition. to despondency they set selves to do that which seemed calculated to restore confidence, ihey called upon the people not discouraged, hut to arm themj to contend with their difficulties, to hope for a brighter future. the future had shown itself in bright colors was due to a power id all Governments. 9 Treasurer concluded by moving dution that it was expedient to e the stamp duty on receipts to euny. The resolution was agreed the committee and was reported ! House and adopted. The House idjourned. j delivery of the statement occuwo hours and a quarter.