Financial Statement.

Waikato Times, Volume X, Issue 848, 22 November 1877, Page 2

Financial Statement.

The following contains the gist of the Financial statement as made by Mr Larnach in the House ou Mon- ; day night last: u ; i After a few peliminary remarks he stated that there were two courses open to the Government. " Firstly, to ask the Hoi S3 to vote suppys for a period of three of four months, or to adjourn to meet again at an early period of nest year, when we should be enabled to place all our plans' before you in a matured form," arid then to take your verdict upon them; or, secondly, to take up the Estimates of the late Government, make such modifications in their proposals as we might deem necessary, and occupy ourselves during the recess in fully reorganising and consolidating the present financial and departmental system of the. colony. The latter is the course which' we have determined to adopt." THE FINANCIAL STATEMENT OF THE LATE C LO.VIAL I TREASURER.

Admitting that it would be impos-, sible to place rnore .clear y before .the House all deiails in reference to the several loans-which have been' 1 contracted, Mr Larriach . accepts them as the basis of his figures, and so *l!?Q in the case of expenditure,

as the several itemß appeur ia the tables receojk suhmiyied by the Hpfei; goes on to oin£ out our present to which |# remedy (he i :PJtQous biirjd.ens upohjihe people to Gi;e:clifr|ffil to bring to a successful issue the graat policy of Immigration and Public Works to whieh.the.^ contracts it has entered info iii re-" lation to the works that are in progress,ifeesidej;j.hß promises of work to be initiated. ' "—*~- , "~«—~——~ EARLTEj?'f MEETINGS OP PARLIAMENT; NECESSARY J

One. striking-defect in the j&irt s^tdui;6f^o ) riductirig'thf public expenditure; = is,;;' thst"tote . G#eral Assembly, '~ t ,me'etis l time after the commencement of a new, financial. , year..'. r After the .weeping]. of IParli« : rtierit;'a' ( plr|Sd of several months sometime elapses before ! the Act of. '''.Appropriation, passes the Assembly. Under such a systenl'thb ex|jehditure is conducted without any appropriation having,. been if made,!, is '"' incurred solely'dnf. the iauthorily ,'of Tmprest' Supoly • Acts;'" f which' direct the moneysto be charged in a manner therfore to be expressed in'the ap :i propriation of the year. From this it results - ;•th';it:'tlierGovernment is able to incur any expenditure if •leased by placing/on the estimates any amount for any sevicel which it thinks 'pVoper to undertake, and; the duty of the Assembly resolves itself rather iutu ratification' of- expenditure iucurred during several nionfiis of the year, Ghan a careful watching of amounts which sit, is asked} to vote. To curtthis.system, one of the duties of thi* presentGdVefnraent^wiil l be/ either to alter the time of commenoemeo* of the financial to take canthat; the Assembly meets, at an earlier;, period: say. not : lafei* tha:. Che firat week in June. TREASURY BILLS AND FLO APING DtfßTSr

SIR, —la the financial year 1874-75; there were outstanding Treasury' bills, that is, loans raised to meet deficiencies in the revenue* of previous years,; and chargeable on the Consolidated Fund to the e»xten: of; £400,000. That amount due and payable in thatjyear, bu the Consolidated- Fund was unabi. to bean so,large jajcharge.. >lt however, hoped, that this sum might be gradually.reduced by the payment but; of, revenue, v of £IOO,OOO per, annum, until the whole amount was extinguished. If that sanguine expectation had' been'realised, there would be outstanding now onh £200,000 ofitreasur.yibills,;of which sum a moiety would vanish concurrently iwith i the present financial year. iJßut the present tendency is ,in >an opposite ; direction, for the amounJLof Treasury bills in existence : ,js now about #BOO,OOO-—more - tbnfr double, the original suni referred to. p£ 1874-75, and, instead of these haying bccurred Li ahdi-decreased: im this particular form, thifcolony's indebtedness, the.original sum may now safely be ' multiplied by two. JNot only., have we been unable out, of the superfluities of the present to. pay of the deficiencies of the past, but the necessities Df the present have fto be--far greater J than: i before,. and the charge :upon: the-, consolidated fund' has now become so large that, to meet these Treasury bills out ohthe. fund upon which they are by law a proper charge, appears to me to be. hopeless. J : QUR, POSITION WITH RB,: GARD TO PROVINCIAL ;: ;:^liabilltjes."

Nor, SIR, ia , this all. Last session, this House final y determined to' abolish the provincial system," and r in so dtiiug had" ; to make ali provincial liabilities Colonial liabilities, 'for.;whieh this, ilouse-has-Yo make provision; Up to the 30 hj Tune'last, the;,&Umpf .£237,500 ha been , ad^anced{fro'to? ; ibah to' meet paymenti ~oi i proyincii).;.-, liabilities, und there existed; at the, date overdrafts at the bank on provincial acoouriti thetsunxnf £10.5. 188, or ; an. aggregate • sum of iw'hifev. i total ""may ,be by; £45,888, being the amoitriif of balances'in hand to"meet" liabilities' on provincial account,' ihas' leaving; 1 still unsupported ; the suai of £297.500. Sir, so much ;I have, said For the period up to the 30th June.last ', and from that time I may be. allowed to travel upon a different and perhaps more uneven iirack. There are known to be at the date on which I am now' speajring 'still : -liabilifcies on, iproyiiicial ]," account •* outstanding amounting! to £279,706; redupeablo by''about £30,001)! due from land and other: sources, ■■• leaving a total tb^,be/';pi^yided r f6r : m i lbme v lmanHer of JM ; the House, : I think will agree-witli! me that still further liabilities in this-direction, will,yet, most surely present them-i selves. In the statement of these; liabilities*, which; I found in preparation for the late Treasurer;,,, theyiappeai? breach a total of £666,000. Ejom the statement of the Colonial Treasurer, the House will have seen,, t'hat there- remains ;no .balance/from Joans upon which lean pretend permanently to charge any of those payments,jbat, on the, other, hand it is absolutely necessary to ..go. info,.the money market,under. "disadvahe'agVons'' circumstances; i'tq. borrow still further r and to attempt to do so upon anything! like able terms, we must be prepared to*

show a state of finanoe characterised by sounine-s and stability. STATE OF THE PD"BMf 'fate COUNTS OiV OUR Strl? On ,h»kday plr last] the dayon\w||h iMloMnmeni assumed offig thergstqllto >the ( credit of show by its bank.ug accounts, th> sum of £762,312, Usjd. Surely, .££L_ Wltn Bucn an" ' bvcrflo *in » wonder what need there is for any financial diffiulty. I shall at once Z^Mi^Mft insists. jm £lO5 563 "73 Bdf £544,518 '^ THIS LAND' F • ITS The of the> LVdd'F.Vnd I is] "£??#?### sy'"»pßpM erikcttn'ent; The \fr^tm> hpwerßriaVge in any orie year that fetfd- may/^rfj^^to ling of.it for any.purpose whatever, beyond that amount which the law at its .disposal >yr Theawhole of, 'the Residue ,is:.to -ibeidistrihuted in certain' : to the ■ uognties ( of; provincial districts Raised. An accumulated land' fun I, underi .the : present/, laws of this oolouy, ? < can' nave* ' be-fas&d 'by th- 1 tern oranly, in aid of y a' : deficient? colonial* treasury? I feel, pleHSure in. saying, will be largely tn excess of the sum estimated by .the. late Government." Thejru estimates was 743,000. J To ! Se|t|mber SO.h.iherehasvac.tually beeo paU nro the irea'sury "*" v the sum Toi £042,231/ 19 Bi 4d (fully { nearly three-fourth's). I do not nean to say.that I anticip.tefour imes that sum as the land revenue rbiiithefyeaf' hilt I thihMit is q'lite •easonHble' to suppose that the rf«will be redised. ' ■-,

PROPOSALS &E&ARDING F U 'TJJRE.JDISP J3iriON' OF THE LAND FOND. Sir*;— Although OtKe Lmd Fund •evenue has nomiually been regard led aud treated as provincial

revenue, yet; in point of fact and actually, it has, by various enacts raents' duringihe "past few years, been gradually encroached uponarid absorbed to such an extent thaty * in the We* that a large proportion is available for localis-

ation, is a delusion, and is calculated

to mislead'the-miiids of the people as to _the-poßition of affairs ; ,sucli! proportion not ! being, for the most i>art, derived from actual land sales, but froov Treasury- .bills. Under such circumstances it is desirable that the sbbjecfc ishouW'be placed %9 a .^9^3: certain aud 1 satisfactory footing; with"wnicn view, and for the purpose of simplifying the public to i; dp openly *nd v that which oarc: predecessors i inn-office hUve'hitherto been doing uisingermously. to-make thejjand Fund oplonial revenue, subject to all the dblgacibris which the colony has undertaken in respest thereof. It is our intention;-howftverj that 20 per cent of ; theolandi;r'evenue. shall be

localised, by law for the purpose of being expended by the Uojal authorities oni roads,/, bridges, and public works-within their respective districts', and; further- we ; ''shall;''ask. Parliament to agree on a uniform land law, whereby: the. public estate, subject to clasification, shall be sold kV uniform prices ,; thibugbout the colony, wheiher -on aisystem emoracinor free selection, deferred payments, or otherwise. Sir, I wish hj also to be -understood that if administrative reforms and reduction

of expenditure can be effected t>*an exteut which'may allow 1 of an/ increase -."-of-rithßr proportion; of 20 per such portion shall biive the benefit ofTt ace* r lingly. On tnis 1 suigeot £ au.d, that while .th"e'circamstan o e v s into which the J^eeri* permitted to that the with as we have just proposed, my colthati one :i of yth&irjnosi legitimate objects- to HirhicbPthafc revenue otigh t t.i be applied is to render available for setcjefaents the 'particular, Joca.lity frora'"whence it had been 'derived..'.

In ought to be regardei as oiie of the main conditions upon which the purchase money?is;paid, vV e> are, .ther fore, of opinion that, in apportioning- the -s public revenue <hroughout the colony, such con . be kept, faithfully in 1 proceeding further, I . may; be; permitted : to say that the 1 iiovernment looks forward to be Jnablecl cojabmifc. to this House' next session well-considered proposals, sound data whereby important districts may~be opened up connected wi(thjthe main railway lines -by means of branch lines. MP be; constructed on-the proceeds of 'ther land,-.- which *wiWbe " rendered 1 anxly- accessible by such branohjine's; oj 'There 5 are at present, as hon..n>embers ; are.aware, extensive ar^s^of, 'public territory throughout line colony which are unavailable-foi : anl ivhich mu3t : cpntin'ue rtojjb? 80~until rendered accessible by i'aihv t^y 6 Qr t £froadßfr.,;This is a-matter in respect to which the looks with-Jfavour upon *he action ' that has been taken during the* .session,.bj; .private J members! We are ; hoye£et', that, it is a which,, in future, ought,to be .dealt by the Government, and we sftall be prepared to devote to it

hat consideration which its imporance daserves. to the maintenance and bridges throughout the regretted that Hi ad #P ea found that in may fflT 00 !^! 16 Counties were unablo WSBW with th «se works, and ,f fche v «rnment, after fiud it to be to Pi 1?* 8 ™? of the colony that it should undertake the work, it will mt Jail b^g_B Ammzi i of the subsidy payable, to any local bodies benefited by * tt y particular diverted for that purpose.

RED UCTION IN D EPARTJ ; . h as been excited °3' that Jorttbn ;of the hon. the rem which had realties t 0 a reduction in the salaries of r Ministem. Thereis.a very laudable <tarios.tyjabroad as to the extent and nature of these proposed deductions, whict 1' desire at ouce to gmtity. lu- t be year 1873, the salaries of Ministers were raised irom the sum 0 f .£IOOO per annum fftk&ffiMM the Premier, and £1250 each lor other Ministers. We dhall propose a revision ut the iJivil List, an>t we shall astc the House to fixQihe Premier's salary at £IOOO, salary of each ot the other Ministers at tue saine a.aaant. Mel propose t,.:s e ll—not privately one of ihe steam vessels now 'the "property; of the Government. The Puylio Accounts Ooininittee report >cm- fche'-advisaoility of selling the Hinemoa, but before deter mining r>L h j,i ch , b v ou Vt<>r depose .ot, we shall be guided careful aud sound advice from officers practically qualigive it ;In dealing wim the 'ovil List it'will be our object to maintain the etfioieiicy of the publio service, and not to cut down salaries -of necessary; officers, but to co..soli. date offioes-as muuh ;is c his. direction we have reasou for uelieviug )jhu._ much can ue done towards effecting a very large having in the annual expenditure of the colon v.

RAILWAY MANAGEMENT. We look forward to an early report from the/Committee appointed at thei oeginniug of this session to inquire into ridway management. A Commission appointed during the •recess to inquire into the working of the Auckland hues reported very strongly in 7 fayoin] pf leasiug them. If the.recommendations oj the Commission referred to are supported oy the report of the Cominiitee, we shall not hesitatt;, either iu regard /to thts Auckland, lines or any other of oar. rail ways,; to ask this House to.fayo.urably consider theai with a view ot-effecting a saving in the colonial expenditure. The Treasurer then alluded to a matter slurred over hitherto to make the profit on railways appear the greater, namely, the* necessity of providing Jor the reuewal of the various lines—a point in respect; of which the Idlest j.careful provision has always been made in tie great railway system; of the mother country, tt is" impossible tp over estimate the serious signiticaiiCv* which this absolute necessity - may. have on. our future finance. YVith our system of light narrow-gauge railways, the j question of reuewal is much more : important than, it is at home. ! PROPOSED NEW LOAN. Sir, I desir-, before I conclude, to say a few words upon the of the Government m to tae exent of the future borrowing power 10 which ,we shall have to :i.sk thu eJouimittee to assent. It is our iu'eution to ask the flouso to o.jnseut to a loan of £4,000,000, feeling assured that the whole ot this amouut wdl be wanted. We prOjiosts, sir, to redeem the guaranteed i.ebeatures, to provide f>r our public worics, for provincial liabilities, for other necessities of tbe'y'ttNr, aud for ali floating debts now dus by the colouj ; but there is also the million due to the two banks, which we have not provided" for herk A t preseut, we have ; loans .raised in London, lonus raised in Sydney, loans raised in this Gblouyv and/ w.e /.have the Treaam-y -bills-before referred to. The Government deem it desirable that this .syjtjßm[shoulcL cease, and that there shoald-be one sort of funded colonial indebtedness for this. colony, show* irig' at a glance the entire debt, — one concurrent. working account, Phowjug our annual revenue and .expenditure under their several principal heads, and that the numerous small and mystifying accounts, and balances at present existing under ; the head of the Public Ac count,_sb.ould be done away with, and that. we should, as soon as possible, have but one oreditor, I mean the ]joudon money market*

TAXATION. We shall, however, during *tho recess, seriously address ourselves to the consideration of large reduction in the public expenditure, which, we have reason fqr believing, can be carried oat; and We will also earnestly consider the question already discussed in this House of altering the present system of taxation in this colony with the view of niore equally and fairly distributing its burdens upon the whole community. Should our land receipts, keep up, I apprehend that it will [not benecesßary-to attempt to raise a larger revenue from the people 1 •than is now from them, but should that source of revenue fall oflf we must be prepared to submit to .heavier burdens to meet our obligations to oar creditors and'conduct the business of the country,

lUJU'iiuj uimja .. ACTUAL PRRSBNT POSITION .l OBJ.UEOyiPTS;AND,EXfi™ DITURE. _.._' . "' . O Wi th tins statemeh& I prop6rf£ft< . lay before the House aflirtble iWSi?ke< i>Tt». t,' showing the estupfltetl £eysnui from all including land, ani the expenditureJfdrithelpfesenfcfyea .based.open the,stateo£> thingswhjc the Government found in; existence Upon taking officel ' This document is worthy |he v : l 6f ,4,ht House. The estimated reveEJue ap^ :.. pears: £3, 699,026 j the,:expenditure, .£4,410,238. The deßoienoy there--fore is £711,212. If the revenue, as .stated 'above,*; fails short dfth|e estimated amount, as is not..improbable, that deficiency will oe proportionally increased. I alsoilay .before, th^ ; '^ojisei 1 a 7 ptßje t ftarked No". 2; 'showing, '"Witnout'* Fund, the estimated revenue and expenditure for same- period. This is a very important table, a&d from it will Wg&ttfered ata glance our true As we are at present condiic'tihg toe" business ._pf..the —Country,...j_t.will be obseved that the present daily expen lioure of tlie " colony [is in excess of its " estimated revenue , (minus;i he land;revenue) byjjg % I feel it my duty to call the attention, of honourable gentlemen to this; state of things, and to a*=k for their, earnest cbsideratioh'of the subject. My' future him ;will l, be to ieh-< deavoiir to arrange a system ihut* ittay prove a state of equilibrium,' betweeW ioqis ..expenditure that/vWiU: vb.e;>fpf a' character.: sufficiently;'fair not to excite of the'coiiritry~6r tKe ebv^df r atfp'thei? j' and, as tbJs.House. in ; its has determined,;and,.tbe colony .at Jarge has agreed in that determination; to try to brings .the J wiiola:iof 'this countryj differing aS it does in com r■ffion' interests, in the fanner a of its colonisations, jind., = i 4, ~. graphical under one united. Government, so, will jt .object of my. colleagues : anji.jqayaelf, to assist in the realisation of this effort by simplify ing and burtoo abundant partnership accounts, and introducing.....a systemof united . finance, 1 without.; vjhioh ~- guch' a who esome united Government; is impossible, tuu u