THE FINANCIAL STATEMENT.

Waikato Times, Volume XV, Issue 1240, 10 June 1880, Page 2

THE FINANCIAL STATEMENT.

Ox Tuesday the Colonial Treasurer (the Hon. Major Atkinson) read the financial statement as follows :—: — - Mr Seymour, wheniiiNoveinberlastlhad the honor to submit for the consideration of this committee the usual financial statement, it was thought by many persons not unfriendly to the Government that in estimating the probable deficit for which it would be necessary to make provision by the Ist of April last of £800,000 I had taken a far too gloomy view of our financial position. I regret to say that my anticipations in this respect have been more than realised, and that the financial results of the last nine months have proved even less satisfactory than I ventured to predict it probable. I for one have not the least doubt that the present check to prosperity — a check which has been felt at the same time throughout the civilised world— is a temporary one ; yet, bearing in mind the effect this check and other causes which we might have controlled have had on our finances, and also the amount of our public debt as compared with our population, the duty of economy and retrenchment has become clearer and more pressing. It is therefore gratifying to know that the plain facts of our financial position which I had the honor to submit to Parliament last session have fully awakened attention to this vital subject, and lave produced in the public mind a determination that the annual expenditure shall be brought within the annual revenue by reducing the one as far as is compatible with efficiency and, if necessary, increasing the other as far as may be needed. The Government propose,' sir, to ask Parliament to give, practical effect to this determination. My task therefore this evening, considering the extravagant habits into which we have fallen of late years, is one of unusual difficulty, in the execution of which I venture to hope for at least as large a measure of consideration as the Committee have so kindly extended to me upon former occasions. Sir, in submitting the financial proposals of that Government in the last budget, I said that it would be impossible to surmount our monetary difficulty and escape the dangers of our position without something like a complete remodelling of our finance, both general and local ; without careful administration by Ministers ; and without the exercise of much thrift and self-denial on the part of all classes of the community. In accordance with the opinions as expressed, certain measures were introduced by the Government, and passed by the House last session, modifying very considerably our financial system by leaving untouched our system of local taxation and subsidies. Upon this subject I said, "The important question of local finauce is far too large to go into this session : therefore I will say no more upon the subject except, sir, that the Government fully recognise the fact that it is their duty to submit to the House, upon its first meeting next session, a scheme which shall place local finance _ on a satisfactory and something like a permanent basis. The Government intend placing local bodies in such a position as will enable them to obtain, as far as is possible, sufficient funds for all necessary works, while drawing a broad distinct line between local and general finance and such a scheme the Government will endeavour to mature before the next session of Parliament." To-night, sir, I shall endeavour to redeem this promise. I trust, however, the Committee will not expect too much. The subject is one beset on every side by difficulties, and nothing but a strong determination on the part of local bodies to rely more on their own resources and less upon external help than hitherto will render any satisfactory solution of this question possible. But before submitting for the consideration of the Committee the proposals of Government it will be more convenient that I should place before them the results of the transaction for the last financial period which through the in the financial year comprises nine instead of 12 months of the year 1878-79. I will first explain the actual financial results of the year ended 30th June 1870. It will be remembered I estimated that that after payment of all liabilities outstanding at the close of the year, to to-k-in" credit for the assets of the year there would be a deficit of £131,824. The actual deficit on the transactions entered up to 31st March last in respect of the period now being referred to prove to be £b'9,418. There remained unpaid, however, on that date liabilities to the amount of £70,105, including £50,000 owing to the Bank of New Zealand, as the balance of an overdraft of the late provincial Government of Otago. "While on the other hand further assets amounting to £5821 have been realized ,since the 31st March, so that the total defect including assets and liabilities on 3th June was £133,700 instead of £131,524 estimated expenditure of the period ended the 31st March, 1880. I now come to the expenditure of the last financial period in the statement which I had the honor to make to the Committee last session. I estimated the expenditure would amount to to £3,110,262, but this amount was increased £3,139,539 by passing of supplementary estimates, the actual expenditure to the 31st March last, excluding advances in the hands of officers of the Government, amounted to £277,270. It will be in the recollection of lion, members that last session I proposed that in future the receipts within the year should be held to be revenue of the year, and that expenditure made within one year should be the expenditure of the year for which I shall state presently when I come to speak of the final results of the period ended 31st March. I shall a^k the rmtteemetopermittopostponegivingeffecto that proposal until dealing with the present year in accordance with the provisions of the Public Evenues Act, 1876 Amendment Act. 1879. Returns of the liabilities outstanding on the 31st March, certified the several under sections have been laid, part of thse liabilities amount to £342,966, from which, however, I deduct £70,193 already referred to as belonging to the period ended 30th June, 1579, leaving a sum of £272,773 ; in respect of the period we are now reviwing, adding this sum to actual expenditure to 31bt March, amounts, as I have said, to £277,266, we get a total expenditure of £3,045,049 as against £3,1 39,53» the estimated amount, there being thus an apparent saving of £94,490. A comparative return of the estimated and actual expenditure of each class with the liabilities added have been prepared, and will be appended. I desire, however, to point out to the Committee, that I included in the apparent saving £94,490. There are several items rising merely from an over estimate, and which cannot be regarded as savings, such as interest, and the 20 per cent, of land fund payable to counties. On the other hand, theie are certain necessary payments for services not provided for, which will reduce, of course, the amount of the total net savings for the period under the head of annual appropriations. "Where alone savings can be really effected the expeniture in eight cases out of eleven, after including outstanding liabilities, was L 92 ,620 less than the estimated amount, including,as we showed, L 13 ,100 for stores purchased for the railways and unexpended. The amount was L105,72Q, In the

remaining three classes Hie expenditure ivas L 8936 over the estimates. Hon. members will recollect that mx months of bhe nine had practically elapsed before Parliament ro.-e, and the Government, therefore, think they may congratul ite themselves on. accomplishing so considerable a saving in so short a time. I now come to the estimates of nine months ending 31st March, 1880. The total revenue received during 1 tlu period amounted to L 2,133,759,, 133,759, to which I add L 30,000 receivable on lsfcMiy, from the Land tax, which the Committee will remember was in hided in my estimate, making together L 2,183,7-59,, 183,7-59, the estimated amount being L 2,445,200 The revenue, therefore, fails short of my anticipation by the sum of L 261.451. From the returns which will be applied to the Financial Statement when printed, lion, members will be able to see ths heads of revenue under which this deficiency has arisen. I shall, however, refer to some of the leading items, the revenue from the Customs did not reach the estimated amount by £47,335. This, I fear, was chiefly caused by the general depression prevailing throughout the colony, and has been purtially caused, as I believe, by the awakening of our population to the necessity of cultivating more thrifty habits, and practising greater self-denial so far as it arises from these last-named causes. The Committee will agree with me in thinking it a matter for rejoicing rather than regret, though it may result in a temporary inconvenience so far as tho revenue is concerned. The stamp duties produced £32,921 less than the estimates, but this large amount does not represent an actual falling off to that extent in the receipts. The revenue, as hon. members know, i-* now stated minus the re-f uuds made last year. The gross revenue from stomp duties during the nine months ended 3 1st March amounted to £111,057, and the refunds to £18,879, an altogether unusual amount, but an estate which p lid £18 405 duty in the year 1878-79 was declared by the Supreme Court not ehurgeable, and that sum therefore had to be refunded in February last, and is included in the refunds above mentioned. The stamp revenue but for this unexpected occurrence would have realised £ 14, 5 1 6 less than the estimate, instead of £32,921. The f alling-otf in this instance is, I think, due to the general depression, but this branch of the revenue will without doubt recover with returning prosperity. The receipts from railways fell short of the estimate by £113,072, but this 10-s is counterbalanced to some extent by the I not inconsiderable saving of £43,242 effected in the expenditure by my friend the Minister for Public Works. The land revenue too, I regret to siy, produced , only £155,108, instead oi £246,70 >. The postal revenue, however, exceeded the estimate by £12,061, but of this sum L 6,982 wa- profit of the Post Office Savings Account, which has heretofore been treated as incidental revenue. There were also small excesses derived from several minor souiccs of revenue, to which I need not particularly refer. With reference to the financial results of the pciiod ended 3 1 st March, 18S0 in my last financial statement, I estimated that the deficit for the period ended 31st March, 1880, would amount to L 796,886, which sum was increased to L 1,826,163, 826, 163 by the supplementary estimates. Hon. members will recollect that Parliament made special provision to meet this deficiency by passing the Treasury Bills Act, 1879, authorising the issue ot Treasury Bills to the amount of LBOO.OOO, with the intention of adding that amount to the permanent debt of tho colony, and of thus starting clear of floating debt from 31st March, 1880, measures being taken to secure equilibrium between revenue j»nd expenditure from date. In consequence, however, of the revenue of the last financial period not realising the amount estimated by 1/261,441, it became necessary to fall back upon the contingent authority to issue deficiency bills granted by the Public Revenues Act, 187S, and bills to the amount of L 200.000 were accordingly issued, making a total issue of L 1,000,000, 000,000 of Treasury and deficiency bills during the nine months. The Government propose to deal with this additional sura of L 200,000 in the same manner as with the LBOO,OOO to which I have referred. Parliament will be asked to sanction a Bill to enable them to do so. The nece c .<-ity for the adoption of this course will, I think, be obvious to hon. members, and it explains why for the period to which I atn now referring ofi, ct cannot be given to the proposal. I indicated in my last financial statement that in future the receipts and expenditure for the >ea*, if it were at all probable, that the revenue of the current finanru il year would be able to boar the charge of the liabilities outstanding on the 3 bt Mm'h. This mode of providing for them would not be suggested, but it is altogether hopeless to expect that it will. In adding the amount, however, to the penna- ! nent debt, Parliament will only be carrying oit the policy adopted last session for the purpose of enabling the colony to take a new departure, fiuaucially, with the beginning of the current year. 13y funding the whole of the floating debt it will now, sir, for the convenience of the committee, summarise the results at which I have arrived. The deficit of 1878-79 has been shown to be £133,700; the expenditure for the nine months ended 31st March last, £277, 227 ; and the liabilities on the same date, £272,714 ; making a total of £3, 178, 5A0. The receipts for the period ended 31st March were £2,133,7.18; land tax, due on Ist April, £30,000 ; assets, £.">OOO ; total, £2,188,738. Taking, therefore, the total revenue from total expenditure we arrive at a deficit of £990,081 for the period ended 31st March, 18S0, to meet which, as I have already stated. Treasury and Deficiency Bills have been issued to next financial period. It is perhaps convenient that I should say a few words about the public debt of the colony. On 31st March, 1880, it was £27,422,011, or, deducting the accrued sinking funds, £1,805,498, the nett public debt was £25,617,113. This amount is exclusive of Treasury and Deficiency Bills for £992,000, held by the Public Works fund, and the 800,000 unsold debentures for the loan of 1870, guaranteed by the Imperial Government. Since the 30th of June, 1879, the loan of £5,000,000, authorised last year has been raised. On Ist of March last, Treasury Bills to the amount of £44,200, forming part of the public debt, on 30th June, 1879, matured, and were temporarily redeemed out of the Public Works fund, provision having been made under the Treasury Bills Act, 1879, for renewing them to 31st December, ISS2, and exchanging them at that date for debentures with a currency of three years. During the nine months ended 3lst March last, additional Treasury and Deficiency Bills to the amount of £100,000, have been issued iv aid of the revenue. Of these, however, Bills for £550,000 have also been taken up temporarily by the Public Works funds, so that the actual addition to the public debt by the new loan and these Bills, amounts to £5,008,000. On the other hand, the guaranteed •debentures, amounting to £80,000, have been reduced, and debentures of the North Otago District Public Works loan deducted from £5,008,000, leaves a net increase to the public debt of £4,200,300. When, however, the Imperial guaranteed debentures for £800,000 are sold, and the whole of the Treasury and Deficiency Bills now held by the Public Works fund, and representing advances to the Consolidated fuud to tho

extent of 6902,000 are issued to the public the gross debt will amount to £29,214,611 or deducting the acumulated'smking fund £1,805,498, the debt will be £27,409,113 subject to an annual charge of about £1,533,000. In this stitement of the public debt the last loan of £5,000,000 is unsubscribed. Should the whole of the debentures bo converted on the terms offered to the public, the debt will be increased by C 1,000, 000 but the interest will be reduced by Ll 0, 000 per annum. Parliament will be asked dining the present session to make provision for extending to thirty-first of December, 1880 the currency of certa'nTreasury bills, amounting to L 390:000, partly falling due with the current year, and to grant authority for exchanging them at that date for debentures with a currency of three years, as in case of the bills for L 452.000 provided for by the Treasury Bills Act, 1879. Similar provision as I have already btated will also be required with re&pect to the deficiency bills for L 200,000 issued under The Public Revenue Act, 1878, forming part of Bills amounting to LlOO.OOO issued during the past financial period. Before leaving the question of the public debt, the Committee will naturally expect some account of the raising of the L 5,000,000, 000, 000 loan. In last session's budget I said that Government had reason to believe, from advices from London, that not more than L 3,000,000, 000, 000 of the 5,000,000 authorised could be successfully floated. When, however, the time arrived for placing the loan on the market, the London agents considered it would be safe to ask for die whole amount at once, and the result proved right. Had they succeeded in floating L 3,000,000 only instead of the whole amount, our position at this moment would have baen one of grave embarassment. The Committee will understand this when I tell them it been necessary up to the present time to use the loan to the extent of upwards of L 3,160,000,, 160,000, of which L 1,818,000, 818, 000 was for expenditure and L 1,342 ,000 for advances to the cons .lidated fund on Treasury and Deficiency BilK Now that these facts are before them, hon. members will easily appreciate the anxiety of the Government last session when it was considered that no more than L 3,000.000, 000. 000 of the loan could be raised at once, and the rein tinder not for a year at least. Therefore they avill understand how necessary it Avas that our agents should offer the loan at such a price as would ensure its sale. There is no doubt that the price obtained was low at the terms of the conversion at the option of the investors, and was very favourable to the purchasers ; but the hon. members who are disposed to think the terms too favourable must bear in mind on the one hand th it investors would naturally look on the large amount of our already existing public debt , and the unusually large sum asked for : while on the other hand our agent had to consider the serious complication^ winch would have arisen had they failed to obtain the loan. It is an unpleasant truth, but one which we shall do well to recognise in regulating our expenditure for the future, that our financial agents in London felt themselves compelled to offer our 5 per cent, loan at SS\, and to ensure sale even at that price to leave it optional with the purchaser to exchange it for a 4 per cent, loan at 81|, and (using an authority given them in case of need) to undertake that the colony would not for the next three years again enter the London money market. In the absence of the loan agents' accounts, which have not yet bseu received in the colony, I am unable to state the precise net price realised for the loan, but after allowing foi discount, commission, and accrued interest on the bonds, the price was about 95), for the 5 per cent, debentures, and797-12ths for fchosa converted into 4 per cents. At the close of the year 1878-79 the balance at credit of the Public Works Fund amounted to £507,205, of which E295,04:» represented advances in the hands of officers of the Government, the cash balance to the public account being £207,662. During the nine months from 30th June, 1879, to 3lst March last we received on account of the proceeds, ot the live million loan £4,249,000, and certain receipts and recoveries amounting to £22,849, making with the balance at the beginning of the period a total of Lt, 708,054. On the 31st March the cash balance in the public account, after proa iduig for outstanding orders on the Bank, was in the colony and in London together L5(>2,410, and the ad\aneesm the hands of onu'ers of the Go\ eminent amounted to L215,70\> : miking together Ll, 178, 173. We had thus isauivl during the nine months ended 3!st March last L 3,599,881,, 599, 88 1, as follow s :— On public woilv^, immigration, and other services, L1,75J,551 : redemption of guaranteed debenture of the loan, 1870, which are of com. so available for rc-i^ue, LSOD,OOQ; temporal y advaaccs to the Consolidated l<\uul oi\ Treasury and Deficiency Bills, L 902.000 ; temporary advance-* on the dcheutuvos, ot tho Wauuea Plain's Uulway Company, LiO.Ou'O ; and Waugaimi Harbor Board, L 17,000; total, L3,5iW,851. I have had prepared the usual statement of the total ways and means of the Public Works Fund, and the total net expenditure to the 3 1st March last from the beginning of the Public Works policy. It will be seen, when that statement is laid on the table, that since the beginning of that policy, in the year 1870. we hid borrowed for public w orks to the extent of L 18 ,700,000, which amount has been supplemented to the extent of L 364,794 by stamp duties and other receipts, making a total ot L 19 ,0 51,7 94. Oar net expenditure duving the savnc period, on sources permanently charged against the fund, has amounted to L15,250,G21. To this sum I add the advauces in the hands of officers of the Government on 31-st March last, L 315,763, and mi estimated sum of L200,000»for discount and charges of raising the last lo.au, making together L 1,550,235. winch being deducted from L 19 ,001,793 tot tl Ways and \loan-. leaves a balance on DUt March of L3,2G_ > ,tlo. counting of cash in the Public accouut iv. the polony and London L 862,410 balance of five million loan to bo received (.estimated) L 3 51,000; guaranteed Debentures unsold, LBOO,OOO ; temporary iidvance-t at interest, L 37,000 temporary advances to consolidated fund L 992.0 >0. Total, L3,2G2,410. With regard to the Tioasury and Deficiency Bills of the Consolidated Fund to amount L 992,000 Uken up under the Authority of the Public Revenues Act, 1878, and the Treasury Bills Act, 1879, out of tne moneys at credit of the public works fund, and I regret to inform the committee that .since the 31st of Ma<ch it has become necessary to take up out of the same fund a further sum of L 3-30,000, of which L 200,000 represents aid to the consolidated revenue, and L1<3 0,000 the redemption of Bills, to that amount issued iin Februaiy la*t. Thus th-j extent to which at the present date the public works fund has been applied in aid of i cvenue amounts to Ll, 131,200. It will of course be apparent to hon. members that, until we can recoup the moneys so applied, the funds available fer cxpendituie on public works and other services a c diminished to that ex tent. It is highly important that this fact should be kept m vciw. Deducting, then, tho snm of £2,342,000 from £3,262,410, the balance of ways and means on 31st March last, we have left a sum of £1,020, A 10 available for our public works and other requirements, till we can sell the Treasury and Deficiency Bills referred to. Having stated the amount of ways and means available, I shall now inform the Committee what are the liabilities to meet >\hjch funds must be se.t iteidtf bel'vie tile question, ot enter-

ing upon any now work-» c>n be entertained. According to the returns certified by the Under-Seeretaries of the several departments, the liabilitias of the public works funds ou tha 31st of March last, amounted to 112, 435, 3 -3, made up as follows:—lmmigration, £10,000; Public Works Department, £644 ; railways, £010, 306 ; surveys of new lines, £15(jp ; roads £108,(5%; land purchase, £1,061,486 ; waterworks, goldfields, £10,704; telegraphic extension, L 102 4; public buildings, L.205,314 ; lighthouses, LI 20 ; miscellaneous public works, L 73,309 ; total, L 2,455,313., 455,313. To this sum I add further liabilities incurred by the Public Works Department since 31sfc March, L 11,000, and a contribution for the current year towards the cost of the defence force on the same scale as for the past nine months, L 15.000. These sums amount to L 275,313, from which 1 deduct the advances in the hands of officers of the Government on 31st March, L 315.762, leaving L 2,389,550, 389, 550 as the sum required to be set aside out of the ways and means at credit of the fund on 31st March, amounting, as I have informed the Committee, to L 3,126,240. Hon. members will, however, bear in mini tint ot this sum of L 1,326,240, 326,240 L 1,131,200, 13 1,200 is represented by Treasury and Deficiency Bills issued out -of the consolidated fimd. It will be seen that the large amount of liabilities to which I have referred will absorb the whole of the cash at the credit of the Public Works Fuud, and will necessitate the sale of the Ll 469,000 of the Treasury and Deficiency Bills hypothecated to that fund. The means available for now works and services will therefore be represented by L 873,000 in Treasury and Deficiency Bills, being the balauce of the L 1,342,000, 342,000 now held by the Public Works Account, -o much then, sir, for the history of the past. I will now submit for the consideration and, I hope, approval of the Committee our scheme of local finance, and our proposals for the ordinary services of the current year. It will be within the lecollection of hon. members that I said last session that the Government would this year recommend the discontinuance of the subsidies. This warning was given because it was then genorally admitted that the av-tem of subsidies was not working satisfa< torily. We thought taxation the Consolidated Fund further could no longer beir, this expenditure, owing <o the amount charged on our public debt, having become &o large ; and that the local bodies themselves might have a reasonable notice before any change was made. Great, however, as ivere the needs of the Treasury last session, and great as they are at the present time, the Government hold firmly to the opinion they then enteitained — that this question of local finance affecting as it docs the vitil interest of the whole country, is one of p iramount importance which must not be dealt with piece meal, bat as a whole. To propose the abol'tion of the grants in aid to local bodies without substituting a workable ■scheme m their place, would be trifling with the subject in a manner which, I venture to think, would not meet with the approval of Parliament, our aim, our duty being fir-.t to pi ico our finance upon a sound foe ting ; second to put our local bodies in such a position as will enable them to do the work which iightlj r devolves upon them, and which must be done by them if the country is to be prosperously settled. Ido not think it convenient to tiouble the committee to-night with many reasons for discontinuing the subsidies. That q-.e&tiou can be better discussed when considering the Bills which, will be introduced to give effect to our propostls. I may, however, point out to hon. members that the system of .subsidies has operated unequally. It has largely helped the rich aud populous dibtriots, while giving little a-si^tanco to tho^e who are poor and thinly populated. It niu't also be remembered that they weie proposed as part of a scheme to which full effect has never been given ; for the laud fund has boon generalised inste id of being localised in provincial districts, and the expenditure on public works, instead of boing limited in amount aud confined to arterial undei takings, has bvjen lavish dud extended to works of all descriptions. The magnitude ot this expenditure will be evident when I say that we have increased our debt for public woiks within the last three years and a half, the time during whicb the subsidies have boon piid, by L 9,000,000, which me ins an ;inuual charge of £450,0,00. The nrcumstaucLh of the colony having so trivatly changed since the system of (subsidies wvs introduced, and it being evident that the Treasury cannot continue to pay them withou the imposition of fresh taxation, tho c iS3 for lecoiLsideration oJt the whole question is complete, for it is certain that Par'i anent -will ne\er consent to levy addition il taxation for such a purpose without full inquiiy and careful deliberation. In the scheme, Mr Seymour, which I am about to submit to the Committee, I must ask members to bear in mind that I take for granted — first, that sjcti 'ii 5 aud 0 of Financial Arrangements Act, 1 87(5, Ameddment Act, 1876, which authorises the subsidies and the grants of 20 per cent, of the land fund to counties are to be repealed ; and secondly, that the proceeds from land sales are not to be used for ordinary purposes of Government. The ground being thus cleure. I will now endeavor to describe m sufficient detail the scheme we propose to give effect to our proposal. I slnll have to ask authoiity to introduce two Bills. The first will be an Amending Bill. It will remove the present restriction upon rating, that is to say, it will permit all local bodies, having the right to rate, to levy rates to any amount they may consider neoes-ary to their local requit emeuts, not exceeding two shillings in the pound, or beyond that amount. If p issed us a special rate, it will authorise municipal bodies and other local bodies to bestow at any rate of interest the ratepayers may chose to give, to any amount, subject only to these restrictions: — 1. That the principal and interest of all new roads shall be made payable in New Zealand. '?. Th it any local body desiring to raise a lo m shall, before doing so, leA y a special rate sufficient to cover the interest and sinking fund upon the money pioposed to be bonowed, such rate to be continuous until the debt has been repaid. The Bill will also require that any local body which has already borrowed upon its gene al revenue, shall, before entering the money market, levy a special rate to recover the interest and sinking fuud upon the existing loan, or loans, as well as providing by a special rate for a new loan. These, aud the other powers given by the Bill are apparently very large, and will, I fear, bo considered dangerous by some people. But, sir, I would point out that if our local bodies are to be really useful they must be made independent and responsible. The one precaution to be taken is to see that the «&tepayers spend their own money, an*l not the money of other people, and this will be carefully provided for in the Bill I now, sir, come to a further and still more Hadical provision of the Bill, a provision which, however, I venture to hope will receive general approval for it may be said to be the very foundation of this part of our scheme. It is clear that all who benefit by the expenditure of rates should contribute towards them, and carrying out this principle to its legitimate conclusion we propose that all Government property, including the waste lands of the Crown, and subject to an important qualification the Native lands, shall be liable to rating, with the exception, of thq

Government House iv Wellington and Auokland, the Parliament House, and grounds, the General Governmßnt Buildings in Wellington, by which I mean the large building upon the reclaimed land, and the railways and wharves. Whatever may be thought of this proposition at first iignt, it will, I am sure, on, mature reflection, and when it comes to be discussed in all its bearings, commend itself to lion, members as fair and reasonable. I will, sir, first state how we propose to deal with Maori lands within the counties in which the Counties Act is in force. It is a fact which I think should be recalled that some eleven million acres of laud in this North Island are still held by less than 41,300 Maoris men, women and children, and that not one halfpenny in the way of rates has ever been imposed upon the natiyes by this House for the construction of roads and bridges which are being made throughout the country, and by which their lands are being enormously increased mvaiufi although, sir, it is true, and ought to be noted to their credit, that many of them have voluntarily paid -rates and contributed from time to time towards the cost of public works. The whole of their property, too, is exempt from taxation under the Property Assessment Act. Sir, the Government think the time has arrived, and we hope and believe that our Maori friends will agree with us in the opinion, that henceforth all Maori property in boroughs, shall be subject to taxation, to the same extent as the other property of their fellow citizens. But, sir, further than this, we do not propose to go. We think, after a careful consideration of all circumstances of the case, that on grounds of public policy, we may reasonably exempt the owners of native country land from the payment of rates. It is clear, however, if this is done, that some equivalent must be found to enable those counties containing a large area of Maori land to carry out the duties we are imposing upon them. If therefore, we are compelled, by considerations of public policy, to depart in this way from the principle of the Bill, it is clear that the cost of exemption should fall upon the colony at large, and not upon the localities on which burdens are imposed, upon the assumption that all land will contribute its fair share of the local taxation. It is proposed to limit the amount for ordinary lands in the district in which they lie to not exceeding 6cl in the popnd, and upon waste lands of the Crown Is, upon the annual value, these lands being practically unrepresented in local governing ' bodies. This limitation is not, I think, unreasonable. To simplify matters and avoid expense and dispute, it is further proposed to attach two schedules to the Bill— one showing for rating purposes the estimated acreage and full value of the Crown land in each county and Road Board district; and the other affording similar information with regard to Maori land. The land in snch case will be divided into two classes, pastoral and agricultural, valued respsctively at 6s 8d or 20s per acre. These schedules will always enable the rateable value of the Crown and Maori lands in any district to be ascertained, notwithstanding that sale go on from time to time, by simply reducing from the amouuts fixed in the schedule 6s 8d or 20s per acre, as the case maybe, for all lands sold according to its class. The total estimated value oj Maori land is L 6,370,000,, 370, 000, but of this only L 5,200,000, 200, 000 is situated in counties in which the Counties Act is in operation All lands, then, being subject to rating with the exceptions I have just stated, the Committee naturally wish to know out of what fund the rate on Crown lands and property, and Maori lands are to be paid. But, sir, these are by no means the only objects for which money has to be provided. In any satisfactory scheme of local finance, means must be made to construct our main roads threughout the colony. Some provision must be made to repair damages done by flood and tempest to our roads and bridges, and some help must be extended, if possible, to onr district roads. This, then, brings me to the second Bill, to which I referred as necessary to give effect to our proposal. The title of the Bill will be the Local Public Works Bill. It provides for the constitution of an unpaid board, consisting of the Minister for Public Works, the Engineer -in - Chief, the Surveyor - General, and the Public Trustee. The duties of the board will be to pay the rates on all waste lands of the Crown, to pay the rates on the Maori country lands, to make grants in aid of the construction of main roads. This will be 'done from funds, the constitution of which I will now describe. As I have' before stated, we shall ask Parliament to set apart the proceeds of the land sales for special purposes, not permitting it to be used for the ordinary expenses of the Government, charging against it only the cos* of its administration, including survey. Now, I think that after this year we may fairly estimate the annual receipts from laud sales for some years to come at not less than L 500,000. I believe hon. members will agree with me that this is a moderate estimate, looking at the fact that our unsold lands are estimated at a low average as worth L1'2,500,000 I think we may, therefore, reasonably expect to realise not J less than L 300,000 a year, tor some time to come. The charges on the land revenue should not exceed LHO,'»OO a year, so that, should we only get from land sales L 300.000 a year, there will be a balance to credit of at least L 160,000. The Bill with which I am now dealing provides that, out of the balance of the land sales, after paying the expenses of administration, there shall be paid to the Boaid each year the sum of L 150,000. If , however the land sales of any year produce a less amount only so much as the sales may produce will be paid to the board. I have estimated the land sales this year at only £200,000. It is possible that they may produce more, bat I have not, after careful consultation with the department, thought it prudent to estimate it at more than that amount. The cost of administration and charges is shown at about L 150,000 ; the balance therefore available this year, should my estimate not be exceeded, would be only L 50,000. Sir, it seems to the Government that, in stating such a scheme as we have under consideration, it would be unwise to attempt to launch it without sufficient funds to tnable the Board to make a good beginning. The prospects of the surplus land fund for this year reaching L 150,000 being but small, it is proposed to ask the Honse to make a grant to the Board of L150,u00 out of the loan, so as to place it in funds for the work of next spring and summer. The fund thus created is to be applied to the following purposes :— First, the payment of rates on the waste lands of the Crown and Maori cuuntry lands ; second, grants-in-aid for tb.3 constructing of main roads and repairing damage done bjtafloods or tempest. The rates, estimated at a shilling in the pound, supposing every Road B^ard and every county to levy a shilling rate, would amount to about L 60.000, or about L 74,000 if rates on Maori lands are included. But I much doubt if the amount of rates payable by the Board will often reach L 50,000 a year. The balance remaining, whether it be 80,000 or 100,000" will be applicable to main roads, and main roads only. The mam roads, I should have srid, will be defined by proclamation. I have had such sketch maps prepared for the information of hon. members, showing the roads it is proposed to declare at once ; power being given in the Bill to proclaim others from time to time, as circumstances may re*

quire The grants-in-aid will bo limited by the funds at the disposal of the Board, and will be made in this way. I will suppose, for the sake of illustration, that a county wishes to construet — and construction means forming and metalling a a road, or building bridges — a section of main road over which it has control, or to repair damages done to a Maori road by flood or tempest, The Council must obtain an estimate of the cost of the work proposed to be executed, which we will suppose amounts to L6OOO. The Council will then make an application to the Board for a grant-in-aid ; but before the Board can make the grant the Council must show that it has one quarter of L6ooo— that is, Ll5OO- at its disposal, which it undertakes to spend upon the work, or else the ratepayers of the comity must impose upon themselves a special rate which will repay one-fourth of the L 6,000, namely — L 1,500 in twenty half-yearly instalments without iaterest. In other words, three -fourths of the cost of construction of main roads will be paid by the Board, and one-fourth by the county, either in cash or by a Rpecial rate extending over ten years. Hon. members must bear in mind that watte lands of the Crown and native lands are subject to a special rate as well as private lands. The reason for making no grants unless the country is prepared to contribute a fair proportionate outlay, 'will be obvious to the Committee, and hon. member- will, I think, admit that the contribution has been made as small as compatible with ! prudence. I now turn to the assistance to be given to district roads — that is, to all other roads than main roads. The Bill provides that the Board of Local Public Works may borrow from time to time at 5 per cent, interest from the PostmasterGeneral, or the Government Insurance Commissioner, any sum not exceeding LIOO,OOO, the colony beings liable for repayment, and lend it to local bodies for the purpose of constructing district roads. The terms on which grants are to be made are that a special rate is to be levied by the local body desiring to borrow which will produce 9 per cent, per annum on the proposed loan, the interest to he charged being 4 percent., so that 9 per cent, paid half-yearly will cover both interest and sinking fund, and will extiuguish the loan in fifteen years. It will be ob.-»erved that the rate of interest is very low, and the terms of re-payment easy. I .think, however, hon. members will approve of substantial assistance being given the local bodies foi the purpose of constructing rbads throughout the country, if only we keep within our legitimate bounds. But the Committee will say : "How can money be borrowed at live per cent, interest, and lent at four." Sir, this difficulty can only be got over by the same means as proposed in the case of the fund for the construction of main roads, by making a grant from the loan to start the fund. I shall therefore ask for L 150,000 to be granted for the purpose, the Board will then be in a position, should the grant be made, to lend LI 50,000 or any less sum at four per cent, interest, and at the same time pay five per cent, upon such sums as it may borrow, to the limit of LlOO,OOO, with a safe margin for contingences. So far, Sir, I have not yet directly mentioned an important branch of my subject, I refer to boroughs. Ido not desire to make light of the present loss to these bodies of the subsidies. My proposal will no doubt necessitate for a time a reduced expenditure ; but there will accrue to the boroughs the permanent right to tax Government and Native property of not much less than one million in value. I say jjermanent, for I think no one can doubt that if once tbe principle of taxing Government property is admitted by this House it will never be possible to retrace that step. The rates upon all Government property it is proposed to charge upon the consolidated fund, as being property included in the ordinary expenses of Government. I trust, Sir, that the proposals which I have thus briefly sketched will commend themselves to hon. members as at any rate a basis upon which this important question of local finance may be ultimately settled. We are all of opinion, I think, that subsidies should cease, if means to a reasonable extent for carrying on necessary works can be provided in a better way, and I submit that our proposals «iie better in evrry respect. The scheme is sound, because it is based upon two principles which are now unanimously accepted in the House: — Fn &t, that the proceeds of the land sales bhould be applied to open up and settling the country, second, that the land owners must, for the futute, practically find the means for maintaining the roads of the colony. And it has, moreover, this great additional advantage, that it "will enable us to complete the separation of general and local finance. The one will in future be in no way dependant upon the other, an advantage, which I venture to thing, will be of incalculable benefit to both the Government and local bodies. Should our proposals meet with the approval of Parliament, I shall also ask for authority, where necessary, to permit local bodies to receive, directly, every tax or rate which belongs to, or has been made over to them I now come, Mr Seymour, to our proposals for the current year, Hon. members "will kindly bear in mind that the land fund, by which I here mean the proceeds of the 1-ind sales, and the charges against it, will be treated seperately, and that it is, therefore, excluded from the estimates of expenditure and revenue, which I am now about to submit for the consideration of the Committee. I need hardly say that, although treated separately, the land fund remains, to all intents and purposes, as part of consoildated revenue for the purpose of securing to the New Zealand bondholders. The estimates, which will be in the hands of hon. membors to-morrow, t-how a very large reduction of charges upon the consolidated fund, as compared with last year, amounting in tho gross to hoi 1,000, and but for the increase in expenditure over last year of LI 09,000 for interest and L 3,000 for reduction, over which of course the Government had no control, the reduction would have been L 673,000 ; and if we deduct from this the sum of Ll 50,000, transferred charges against the land sales, there would still have remained the very substantial reduction of L-523,000 ; bub even after making provision for this increased expenditure of L 302,000 on iiterest and education, and allowing for the loss to the revenue of the proceeds of land sales, L 200,000, there will be a saving 1 of expenditure from the consolidated fund of L 340.000, and this without iinparing the usefulness of local bodies, the efficiency of tba public service, or shifting burdens, which should be borne by the revenue, to loan or other funds. The total proposed votes for the year, exclusive of liabilities, is L 3,473,70 9; but of this we cannot spend and bring to account within the year more than L3,2-i5,709. This advantage will not recur, but fortunately comes to our aid now, thus giving the revenue time to recover its normal condition, as we have every reason to hope it Avill, by next year. There are some items of expenditure to Avhich I desire to call the special attention of the committee, as showing the reduction which have been effected, and the directions which the Government think further reductions are possible, and should be made. It will, perhaps, astonish honorable members to hear that we are now paying over £1,000,000 a-year in salaries, pay, and wages, and £18,700 for pensions. This includes railway employe.es ami gur ordioary comple-

ment of constabulary and police. Of this sum, £643,000 is for salaries, pay, and wages of £200 a-year under the Government. Sir, as must be evident to every one, they have had no time to grapple with $his enormous expenditure during the short recess just terminated, but they bave made reductions wherever it was possible to do so without affecting the machinery of Government. We have given the subject as careful consideration •as the time at our disposal would permit; but, as I have often before pointed out, effective and permanent reductions, as distinguished from spasmodic efforts at economy must be the work of time. Sir, the Government is of opinion that it \vill take the whole of next recess to deal with this matter as it must be dealt with. To assist us in the accomplishment of this subject, a Royal Commission has been appointed to enquire and report upon the whole organisation of the Civil Service. Its labours will be of great value to the Houße and to the Government in dealing comprehensively with this difficult subject ; but, sir although time is necessary to deal with the subject comprehensively, and we had so little time at our disposal, wo feel this could be no excuse for not at once making a beginning. Besides several minor reductions my hon. friend the Minister for Public Works has reduced the expenditure of his department byL36,000, without impairing in any way its efficiency. The Native Minister has succeeded in reducing the expenses of his department from L46,9U, which it was by last year's estimate to L 14,262 this year. t»alaries and contingencies were last year 1/21,161, this year they are estimated at L 13,453. Nor is this all. For, iv the Land Purchase Department, which had grown into a serious excrescence on the Native Office, we have reduced salaries from LlO.OOO to 6,000, or about 40 per cent., and in booh case*, I venture to state, the service is better performed. From this hon. members will see tha.t that hon. gentleman has more than fulfilled his promises of reduction made to the committee last year. My hon. friend will, no doubt, explain what he has done more fully when the Native estimates are under discussion. I have said, sir, that we axe paying over L 1,000,000, 000, 000 yearly for salaries, pay, and wages, and this is upon estimates which have been apparently reduced to the lowest possible amount. The Government have under consideration the question of the reduction of salaries of Ministers. They do not think Ministers overpaid, and are not prepared to recommend a reduction in their salaries. That question will be carefully considered during the recess ; but looking to the financial position oi the colony, and the necessity for reduction which must be made in some form, we propose that 20 per cent, be deducted from the salaries for the current year, beginning on the Ist July next. So fat», sir, a reduction is simple enough : but how to deal with the salaries generally is a far more difficult question, as gross and cruel injustice may be easily done to many deserving officers if large and indiscriminate reductions be insisted upon, and the efficiency of the public service may be seriously impaired. We have among our Civil servants not only a large number of willing and efficient officers, but we have men who would be a credit to any service ; and while some of our departments urgently require reform^ or remodelling, or even abolishing by consolidation with others, some could hardly be touched without being injured. And again, while some officers are no doubt over-paid, others, considering the value of theii services and the difficulty of filling their places, deserve more than they get. We can therefore lay down no rule for retrenchment ; but, sir, an effort must be made in the inttrests of economy at once. We shall therefore propose to the House, notwithstanding the fact that the estimates have been kept within *the narrowest limits, that 5 per cent., or L.50,000, be struck off the votes for salaries, pay, and wages, and we shall proceed in manner I have indicated to make this saving ; and if, with the aid of the departments, we are unable to make the necessary reductions to cover this amount, we shall issue a scale of percentages, showing the sum to be deducted from every employe of the Government, which together will make up the L 50,000. I hope, sir, the Committee think this a sufficient evidence of our intention to take this subject seriously in hand. The task, sir, is a very unpleasant and thankless one, but it is a clear duty, and must, therefore, be done. If, then, the Committee should agree to this reduction, the total expenditure within the year will be L 3,198,709,, 198,709, for which provision has to be made. In estimating the revenue of the year ISBO-Sl, which I do at L 3,190,000, 190,000 full particulars of which lion, members will find in table No. 7, attached to this statment when printed, I regret to say that I am unable to take as hopeful a view of customs receipts as I did last session. It must be admitted there is no known basis on Avhich to found trustworthy calculation as to the probably receipts from Customs duties in the colony. The influenoies at work are so numerous and uncertain in their operation, that it is impossible to form more than an approximate estimate as to the receipts for any period' of financial or commercial depression, such as we arc still suffering under. I have estimated Customs at L 1,250,0, 250,0 JO for the year. There was a net decrease of duty of L197,b'84: paid at the Customs during the year 1878, and that more than proportunate decrease for continued for the fir->t quarter of ISBO. Notwithstanding the large increased duties imposed in November, 1579, the Customs receipts for M.-u'ch quarter, 1880, were less by L42,'257 than for the corresponding quarter, 1870. Imports, tuo, were less in the former quarter than in the latter by L 978,734, and this difference was not caused by any large falling off in railway material and" other articles imported for the Government, the total value of Government imports being, for the March quarter of 1879, L 95.263, as against L 54.092 for the March quarter of 1880. Tobacco yielded an increase of L 7193 during the last quarter, but this is owing to increased duty, 30,7261b5., or 12.V per cent, less being cleared than in March, 1879. But the greater portion of the decrease may be traced to the fact that in the preceding 1 quarter there had been withdrawls of tobacco from bond considerably in excess of the usual average, in expectation of the duty being increased. Drapery and spirits both show an actual falling off during the last quarter, as compared with the corresponding 1 quarter of 1879 ; the former of 1.6346, tho latter of L 7457. Drapery, &c, found yielding for the first quarter of 1880, L,'j9,8(52 ; and spirits, L 82,482. Hon. members will observe that the percentage of loss upon drapery is really double that on spirits, which I take as an indication that smuggling and illicit distillation will not increase to any appreciable extent through the additional duty imposed upon spirits last session. Looking at all these facts, I do not think it wise to estimate the Customs for the year at more than I have done— namely, L 1,230,000., 230,000. Hon. members will see there is a considerable increase in the Estimate surplus of receipts over expenditure on railways — namely, L 341,082. But my hon/ friend the Minister for Public Works proposes to slightly increase the charges for freight, and still further to reduce expenditure. The remaining items of the estimated revenue do not, I think, call for special remark, except that I should point out that proceeds of land sale are not included as revenue. I have said that tfce estimated expenditure to be inado within th^year will be £3,193,709, and the esti-

mated revenue L 3,198,709, thus leaving a balance of LB7OB, though I would again call the attention of the committee to the fact that if wo made up ouv accounts as we have done heretofore there would be a still further amount to make good of L 220,000 ; but as I have Baid before, this will not become payable within the year, and therefore I don't propose to make provision for-it. Namely, in other words, though beginning this year free, we have to pay less during the year than in any succeeding year by the amonnt of the liabilities which will necessarily be outstanding at the end of the year. I must, sir, here say a few words about the Land Fund, the receipts of which from all souices are estimated at L 335,000. Of this L 200,000 is from land sales, which has not been included ; but, in accordance with our pioposal of last session — repealed this evening — has been set apart to be separately dealt with, charges, as hon. members will see upon reference to the Estimates, against this amount to L 100,223, leaving a balance of L 49.777, which, should our scheme of local finance meet with the approval of the House, will be handed over to the Local Public Works Board. We shall further propose that, in any year when the proceeds of land sales is more than enough to pay charges and admin stration aud the LloO.ooo to the Board of Local Public Works, that balance shall be paid into the Public Works Fund. The Government, Mr Seymour, had hoped to do without proposing any alteration or increase to taxation this year, and would not make any such proposal, if on the one hand the taxes imposed last session, and generally accepted with only that amount of reluctance which is perhaps a natural attitnde towards direct taxation ; and if, upon the other hand, the proceeds of taxation had amouuted to what might reasonably have been expected. But I have shown that in Customs duties the increased rate has not been sufficient to prevent a decrease in the amount collected, whilst from many quarters we have received strong representations that one feature of the property tax is extremely distasteful to a large section of the people. Discontent has, we believe, largely arisingthroughamisapproprehensionofthe Act, which does not, as commonly supposed, empower any officer of the Government to enter a man's house to value his goods ; but, as I say, discontent exists, aud whether baseless or not should/as far as possible, be removed. The removal of this obnoxious feature of the property tax is fortunately rendered more easy from the fact that it is generally admitted this cannot be done without the substitution of some other tax which will produce at least an equal amount to that abandoned. The Government therefore, in accordance with what they believe to be the desire of the taxpayers, will ask the House to exempt personal effects, furniture, books, &c, from assessment under the Act. By this concession, sir, it is estimated that the revenue will lose L 40,000 a year. This, then, together with the deficit of L 8709, hns to be made good. The question is — how can it be done in the most effective and least objectionable manner. I fear, fair, there are only two practical courses open to us we may reimpose the tea and sugar duties, or we may tax beer. The Government, sir, have carefully considered which of these courses to follow, ani have determined to ask Parliament to impose a tax upon Colonial beer, of Gd per gallon. It is with the greatest regret I make this proposal, when Colonial Treasurer some time ago, my colleagues and I carefully considered the subject, and we ultimately decided th.tt we would not propose this tax ; and when in Opposition two years ago I helped to throAV it out when introduced by the late Government, upon the giound that it was practically beginning a system of excise taxes, which I was very loth to see introduced in NeAV Zealand so long as it could be avoided ; but the financial position of the colony is such as to compel us to resort to taxes, Avhicn in more favorable times we should not have supported. We also propose to increase the duty on imported beer by Cd a g.tllon. I hope to obtain from the beer tax during the current year £SO,OOO, or at the rate of L. 100,000 per annum. It will be within the recollection of lion, members that I proposed last year to introduce a Bill to increase the succession duties, but that, through a want of time, the Bill was never circulated. I propose to proceed with that Bill, and should it become law, it will increase the stamp revenue this year by about L. 10,000. Summarising then, &ir, my proposals for the convenience of the committee, they amount to this : deficit, as shown by difference between estimated expenditure and revenue, LS7O9, to which I aiW L. 40, 000, lost by exemption proposed in property tax, making a total of L. 10,000 for increase of stamp duties, and obtain L. 90, 000 ; thus showing, if our expectations prove correct, a credit balance of L. 41, 291 with which to end the year. The margin, as the committee will agree, is none too wide. In conclusion, Mr Seymour's Committee will permit me to recall to their minds some of the main facts of our position ; and to sum up shortly our proposals, I would first call attention to one fact of cardinal importance, which more than any other embarrassed ou/ finances for some time past — the fatal mistake, as pernicious in practice as it is bad in theory, of treating the proceeds of land sale as ordinary revenue. This, and our unexampled prosperity for some year.-, led us greatly to over-estimate our resources, and so completely to misunderstand our financial position, and to such a depth bad this gone that the House was content in 1878-79 to vote one million of the prooeeds of the lasd sales revenue of the year, and adopt the scheme of public works equiring a yearly receipt from land sales of L 750.000 more. When therefore the l&ncl sales suddenly foil to less than L 510,000 a-year, our difficulties became great and pressing, for it was manifestly impossible to stop immediately the enormous expenditure then in full progress, based upon the assumption that the land fnud would reach something like two millions a-year. The Government, Sir, of which I have the honour to be a member, have been blamed both in this House and in the country for stopping the expenditure too suddenly, and therefore intensifying the depression under which we are suffering ; but when I tell the committee that during the nine mouths which ended on the 31st March last, we actually spent on ordinary services of the Government and on public works in hard cash, notwithstanding our strenous endeavor to rttrench, no less a sum than L 4,523,257, of which L 2,741,963, 741,963 was borrowed money, they will fully appreciate what I have said as to the difficulty of bringing our expenditure within reasonable limits, founded as it was upon an exaggerated assumption of our means, and, I think, fully acquit the Government of undue parsimony. To meet this serious difficulty, and to retrieve our position, the Government at once set to work to reduce the expenditure in every direction. But this must necessarily be the work of time, our commitments both by habit aud engagements being so large. We propose to separate our land sales and receipts from the revenue, and to impose additional taxation to raise a sufficient sum to meet our necessary expenditure, But although all this, so far as it could be done, was done promptly, it was impossible to bring it into effective operation during the last financial period. The time was far too short j and as a consequence of our

want of forethought through our years of prosperity, we have now to add o le million to our funded debt, that is, a pormanent charge of L 50,000 a year, as the result of the deficit outstanding against the Consolidated Fund on the 31st March l^st. Of the necessity of finding thifl no one who considers our engagements and our heavy taxation will, I think, entertain a doubt, and if only we have learnt the lesson of economy and thrift, which our difficulties should teach, we shall not have papsed through the present cricis in vain. We must make up our minds to three things : to a greatly reduced expenditure, both on public works and from the consolidated fund ; to a complete separation of our local from our general finances ; and to submit to increased taxation for some years to come ; and I would also emphatically point out that we ought to connect far more closely than we have ever yet done the idea of an additional taxation with further borrowing. As soon as it is actually realized by the people of the colony that each new loan has to be repaid, but that until repaid it imposes a yearly burden which must be met, if not by the increase of the tax -paying population, then by the inorease of taxation itself, as soon as this is fully realised, I say fresh loans will be much seldomer called for, and much more carefully spent. That some further borrowing will be necessary is to me evident, but I trust that it will be only in very moderate suras, and for specific objects. I also hope, sir, that the time is net far distant when, through the restoration of real economy in cur finances, we shall see our way to addressing ourselves seriously to the tasks of reducing our large publio debt, and I trust that the proposals of the Government, in part already sanctioned by Parliament, will at least tend towards making such a course possible. I sincerely thank the committee for the kind attention with which it has listened to my statement, and would only add, before resuming my seat, that I have no doubt of the thorough soundness of tne colony, and of the great future before us, now that the people have awakened to the real facts of our financial position, and the responsibilities it involves. The Treasurer concluded by moving — "That towards rasing 1 the supply to be granted to Her Majesty there shall be levied and charged on and after the 9th day of June, 1880, an excise duty of sixpence per gallon on all ale, beer, porter, or other malt liquor, brewed or made in New Zealand, before removal from any brewery, cellar, warehouse, or other place in which same may be stored ; such duty to be levied, collected, and paid in such manner as the Commissioner of Customs may direct. That, in lieu of the duties of Customs now charged on the undermentioned articles, the following duties of Customs shall, on and after the 9th day of June, 1880, be charged thereon on importation into New Zealand, or on being cleared from any warehouses for home consumption, viz., ale, porter, beer of all sorts, cider and perry in bottle, the gallon Is 9d Ale, porter, beer of all sorts, cider and perry in bulk, the gallon Is 6d. The resolution was agreed to after a long discussion.