THE FINANCIAL STATEMENT.

Waikato Times, Volume XXIX, Issue 2390, 3 November 1887, Page 2

THE FINANCIAL STATEMENT.

\Vkujn‘.i IV-il.iv. In* tho lOuse, < f K-jut -.-ni .*r.•*' thiin,; tin- (.’ .loninl .'M -r Atkinsi'ii; delivered the K :n-iivi.d >Vii*:iin:iJl, a* follow-*:— ** Mr Hamlin: I hj ev- - n —-v-r:d ~imih*r occasion- iiati tli-- ii'iu . ir of vn i ami Vi »ir predece->. -r> in l hit, eh »u. but I need hardly sav that .-n ij.* j ,r—*• i-us .»cc..->i-»n havi* I i-lt a •• ilv r«-'{* »n~ibility, arid -•! t(i*‘ltwhich be i*-f Te is. \*l I will add lint n*;'.*“r l > i-lv h.i\*; 1 I-lt m-*r- c-übd-nt tint tli*-e di-li cullies (.-an and will b. ; ov-rc-m-, -mve theology. and I h-li-\*; tin— i.o-.uj.r-llectimr a-, a dne> tin? mind «.f th>! c i-'nv. lias determin' d that *>ar oitlir;!* i*- -h »,i i • met ami d-.-aii with in *h- n_rht it."

The Tr-a Mir-T n ;-r ird {-. -ay that the I:i-t I*ai.i.i'iit jit ii »d • n j :iiiie.il.v r*fused to sancli n the pr •} —al -.f S;r d-ihu-Vogel to imp— 4 add:ii..na’. tax «n--u t-* lhextenl of im-.-t : llial i nlher reducti-'n< in tin,* e\ {ir n-iiinr-* .-h-ed j « - i made. Tiie c-Miiiry iia-i c »ntirm-d tin-, decision, ami had made a Firm Demand for Retrenchment. The l lovernm-nt, at all event-, ar * anmnp f tlm-e who fully tnhie-e in therei-*- D ableness of this deteniiinnti*.n 9 and that the c< untry is piepauid for the n. c ->:iry -e:f.sacnlices winch it involves mi tie; part of the community at ar?;.!. Why Additional Taxation was Proposed. Tiift deficit, as pi>en by tli» ht.’ .ami ii Treasurer f..r the year ]s<i;.»7. «ai’!)2.2'JS, but the .urplus ui £37. s j'.l, with which the year I.SSu-7 liasau. ami the windfall <d £101,730 n{ n-1.-a—d ainkiiuc fund, the recurrent revenue fell short of the expenditure by £231,001. hence the reason why the late (b.vcrnnient felt c mstrained to proin.se no le<s a sum than a quarter of a million of taxation over that of the year ending on the 31.-t March last.

The Land Fund. lie referred briefly to the p ‘-ithm of tii * hind fund account, which -bowed a dficiency on 31st March, iss;, of inakins'the deficiency in th- CLmsohdatim fund UM'*>,hsfi. Consolidated Fund. It new appears the probable expenditure for the current year w-ndd amount t*< as ai'.tinsl the l*»tal of appearing in the e-tim tU < < { the lute Government. It is hardly necessary to enter into any explanation w the differences between th-*>e two e.-timate*. There are savings and excess in various directions, which will not prove bo lanre as usual, because the estimates ap;M\tr t * have been framed with little margin over the sums proposed to be uctually spent. In arriving at Hie above estimated total of £4,118,395 he had allowed for the percciitaf;.: reduction of .salaries, ostimited to amount to £20,000, proposed by the late Government.

Ordinary Revenue For the Year 1887-88. The revenue for the six* months rndinsr on tlu; 30l1i September last was £l,. r i]o>d;b being £10,844 less than was rcceLed during the same period of the financial year ISSS-SO. To this must be added the proceeds of debentures amomitimr to £2-V<,ls|. issued last April under the Consolidated Stock Act, ISS-I, on :*cc mnt of the -unking fund. The rotal receipts were, therefore, exclusive of the proceeds of deficiency bills. £1,709,017. Tne experience of the n\~i six months leads to the urobd>i:itythat 'tamos will not reach the estimates by i'ILV'.OO, and railways by £’>o.o <). Taking tie.se circumstances into c *•.-: ! n-?.tion, he estimated that the i«.-vonu- : rthe s:x month' ending 3lst M m:h, F will amount t** £2,019,4*10, making a tot.-:! of £3,788, -507 for the year, as against £1.15G, 184, :i> estimated by the late Colonial Ireisurer, which included the propose! additional taxation.

The Land Fund. Last year the expenditure exceeded the receipts by £33,879. It is expected that the receipts for the current year, estimated by the late Government at £108,890. will brealised, a revision of the expenditure, estimated at £2300. Thus the expenditure of the year would have exceeded the reveimby £50,417, exclusive of £lBBl, expend ' i on village settlements tothe.*»l<t of March last, with liabilities of £l7,>'7, mucincurred, whicli has yet to he provided, either from loan or consolidated fund, in* provision having been made for it by Parliament. ThelateGovernmentproposcdtomeet the deficit on the ordinary revenue a:c mnt by additional taxation. proposed to deal with the deficiency of Uj* Consolidated Fund as a whole, and prevent its recurrence ; but, first, asked attention to the public debt, and to the public works fund account.

The Public Debt. The gross public debt at the 31st March. ISS4, as set forth in tint tibia. «v:i------£31,071.532, exclusive of £3:13,000 for deii-ci-licy bills. At 31st March, 1337, it was £3-5,711,(153, exclusive of deficiency hills for i‘271',100 then outstanding. Since that date further deficiency bills, to the amount of £715,1)00, liave been issued, tin; total of those now outstanding liana fyya.OOO, in addition to the debentures for £253,134 issued in April last for increase of sinking fund for the current year. Major Atkinson then proceeded to explain at length lieoperations under tlie Consolidated Loan Act, 18G7, in the redemption of bonds and the conversion of securities, together with the accretions of debentures issn-d under the Consolidated .Stock Act, 1334 He stated that what had been done habeen with the provision of the Act of 1831, which gave power to the Colonial Treasurer to issue debentures for increases of the Sinking Fund from all sources, and that the result, as it was stated would be the case, has been that as regards loans outstanding on the 31st March, 1334, ta>nett public debt lias practically remained stationary. Public "Works Account.

The account is now divided into three separate accounts, a separation necessitated by the legislation of the session of ISSti, which has the effect of what has been termed “ear-marked"’ the North Island Main Trunk Railway Loan, and the loan authorised in ISikJ to the specific purposes set forth in the two Loan Acts. No. 1 Account. The credit balance in this account was on the 31st March last £131,215, subject to liabilities amounting to £335,774. *hi the 30th September last there was a credit balance of £217,232, subject to liabilities amounting to £230,435. Against this fund is charged all miscellaneous works, such as harbour defences, roads, bridges, school buildings, purchase of native lands and telegraph expenditure. Hon. members will therefore see that without further borrowing neither can our liabilities be met, nor can necessary works of the above description be undertaken if we adhere to the wholesome restrictive principles of the Act of IS3G.

No. 2 Account. This is the account of the North 1-iand Main Trunk Railway I, an. The unexpended balance ou the 01-t March, IS>7, was £i>71,314, subject to liabilities amounting to £187,067. On the 30th September last the unexpended balance was £i'dh,'J‘i<, with liabilities amounting to £137,474. There is therefore a sum of £477,784. still available in this account, subject, however, to tin cost and charges of raising the whole loan in the market, which has yet to be done. No. 3 Account.

This is an account of the loan of isSo. On the 30th September last the credit balance was i'ooG.Otll, and the liabilities £304,001. There is therefore still available £2')2,(iGo in this account. The credit balances, however, of these three accounts jointly are only in part represented by cash, and the p over of spending depends upon our realising the securities bald to their ciedit and floating the North island .'lain i • aai Railway loan. Tim securities consisted deficiency bills t.T.1,200. district railway and other debentures £1311,(11)4, and the N0..,, 1 -land .Main Trunk Utdwayloan £1.000,*.)p0, the total credit balance of these three account' bci-’g £l. llO.lhl, againsi whioh there were liabilities am .noting t< £720.’.b3. Loans to Local 2od c s.

Up to the 30th September 1 i-i w.- had hollowed £1,0W,000 under the provisions of the Government Loans!., L cal liodie-.-Vet. 1860, for tho pui po-e ~f making loans to local authorities. Of th-t amount £yl,i;sii had been disbursed at that date, leaving a balance of £26,314 in hand, with liabilities amounting to £!!9,ISJ, to meet which a further sum of about £IOO.WO will be required, it is intended to ask I’.uliament to appropriate a sum of £IOO,OOO for the purpose of the Act for the current year. N^'. v_ Lands. Tlie apparently insoluble problem of deal-

- .mi - 1 V..1Y m th- t:.- M ~-T> and ‘ * ••- -• tt --ii’■ ijt •-f :h -1; /,■ Iv. . ccu- !'*"'* I - ; ‘d-.v to-.- . f tb- Go-v»*iam-nt an i th- - jf,.y nv tn .n -m -t in". ■ -th-i ; ;i. Th-i-are • • ll) ■' ; tV - ' *■;!! i •? :»:]•!;* <1 v. 1* hj .1 t-< :n*rn iti--*-and K adk-. it is pr* ;i —-d t*» r--;j al t:i-* fV-'.vn and Native Line- U iliiij ,\<r* t and u*k b t au* hw itv To •a-..' .1- di'trmt* ii v.h:ch ti. • Aw xw.iapply - | t*» iiria id::*A ■-f bah rac-v. The Ml T.wii h- ;i -]i i* 1- jmv i i***- and t aus in m* i-Ib'W--'jbj-et n: th** race .1:. : •-n th- *••• id ; j--r to d*-»i w.'.'u ir.- jid.i'iV y .i> any Knr-e p-m. Mt-r th- Gr-wn tit!.* ha- n "bV«m- • ut it-ivnl i*• r n.j-Il- d t-> i-Tain a - d!h i-nt am-uni < : And b.i th- maint-n- -----• : idm-.df and family ; and * f a.; : fa.-e i- •:./ ho.'-- liact- ■ : c ■ .n* iv. it v.:]; 1-e rl.f' i t i;.;t ! ;nd t - •-n.y --f am- d-r-it*- si/-. In :-.l • di-»-t: c•' -ny v. hr,i. :o -• tn- M i--r> n-.t t - ]-*innlttd t * j»ait v. ;t:i *n-:r iaii :-!■> niiv- n- but th»* Cr< wd, under mie stniiL'-iit Ciiuidr The Tariff. Tia- dnr;i tin* -la-it lin.^ at ♦h-ir dt-;>'«-ai Inve had this matter und«T lij • 1 ' ir-fni e n-idvratn-n, and l:a\e c-*m€ tii- C ‘M;.;X"ii that th- -h'-nld nt ?►; d-tit with d-.ri'.t' th** f-r—*nt ke.i.m-- it t-- deal with it r Tii- 4 *1 o-rnim-nt are -trendy ■ ? i * pinion that it -Imnld imt I touched until it can -* d-.iit with a- m t to m-'M f'tr’ii’ir icu-i'-n f-.r a c -L-iderahie

To Equalise Revenue and Expenditure. ffowis it p s-ibie without further taxa - ‘ion i t the revenue and exja-nditure to balanced! Our chief difficulties have undoubtedly arisen in a great measure from a too lavi-h ex|>enditure. more e~-j.-ecialfy of borrowed money. That must be -topped, and .err tir.-t duty therefore t- to apply the pruning knife with an un-paring Settlement. Vv'e mn-1. inl—-d, tall p --ible means to pr.oeut Voi-t**, b.rii ~f .nr .eduiary rev.-n tie and “’-:r n.'-n-y b>.n<-Wf-i fir public \v-*rk-, l»nt «<• mu-l a]-* promote theH-ttlc-m-ut and -•cjup.umn «•! the L;nd-J<.f the c 4-ny, and v.e inu-t al-f», :ts far as praclicM»:-. t-nc->ur:ii:c all «>ur other industry* by ad m-*.m-in ».:jj p w.-r. Thfre i- jin surer v.mv "i liking th- t-'untry out r-f its pn*--nt djilieuitif- than by th- introduc-ti-ui of c *n-id*--rabl»i numl»crs of p-*iM>n-p *s.v:sstid of >udicicnt m-ans and l<» cultivate th-land pr>-j»-rly, ii"t only as ordinary fanners, but as and growers of plants suitable f., r iranufacturc, •»r supply oth-rindu*tn-s. tiur Hfurts at i'tivnchiiioiil will 1>- C’'n4{*araiivt 4 ly unt - ro-ton* {iro-;s : rity uni--s we tan obtain a lation U* tmpa*y labour. Upon this sub-j-ct we hope P» at m» distant a cuj-iderablc avees-j -n t'» our n . f j»ers'*ns **f the alma; uderred t . Tlitisne also apjarently is favourable t«» the e-tablkhinent yf pen-iun-r Httlements, Tn-Government are «f ojuniou that every • ff.»rt should l>e made to induce a c<'n>ider-ibi-immigration of this cla-*» of jh is- jis t> the colony. The (knernment propose to amend an-! Mmplify th- land laws, and, as far as possible, make lln in uuif im niit the colony; to alhi’.v selectois full freedom »»f ch'-icc n<to t-nure, and above ali. and as the dominant id-*a, to enable the b >n;t tid- to jjet j>* -si*•« of. and a Title !■*. liis land with the 1-ar-t po«ible delay and expense.

Mining 1 Industry. The hovernmont fully icO'gnLe the inipoit.ima*: of devrioping the tiiUJ- ial Health «*I the colony, and tint by the spread »*f a wider and ui«*re exact know-edge of inin*u\d> proce-ses and u.t-tliods. and by a in- re c *mplete technical education, a p-od deal ••f waste may l>e ;ivojd**d, and lodes and • •r< s may be found and worked with pro. 5l whicli are either now pa«>nl by or are n-t thought payable. Toe Government will be udliing to av'isl in the matter of technical education as far as tiny aie able. Railway Management. The question of placing the railways under what is cared a non-political board of man *tviji‘-nt has Indore the public fm '"!!;■• \v-ir\ and the introduction of that plan in VicP-ria has indeed us in NVv X-ahui'J l • watch the pr;iclk‘il working of tire sy-lc:u. Locking, therefore to tue di's.«t:sfacr'''ii t-xi-loi.: in New Zeai.nd at our pre-enl j-y-lcm, and the fatisfaclmn wiiich Uie l»'*aid has gNcU ti Victmia, the Mmi-w :■ r I'ublic Works, will ask for I«m* e introduce an Act t‘.iN s.."i »u in iVrlhumr t tut“ a m-n phnrd b-srl of for the Nh-.v Zeal.-lid Ualiway>.

How the Daueiency is to be dealt with. In the meantime we Imc to deal with the > lions present di-iicimiy in ..ur rwoime. The pr.-po.vus of the*.internment w■■•old prove t ■ be of a sufficiently comprehensive character to satisfy the most thorough reformer.

The Governor. He proposed to begin with the Light 1 ! office in tiie colony, that of His Kvcelltuc the li oernor, to take affect at the appointment of a new Governor. The Governor's salary to remain at £SOOO, but that will include the c-st of his staff and all allowance-. This n ill lx; a total reduction of £"2500 from tie- amount at present paid. Ministers. With regard to the salaries of Ministers, rhe Premier shall receive £"1000 instead of £l7-50 now paid, and that the other Ministers shall ito rive £">00 instead of £12.50 at present paid, and he projxved to reduce ihe i.i;:oU-3 ..f i-iid Ministers from 7to it. simuhar e->usly with the reduction in the number of members of tin- House of Representatives. As to travelling allowances, 1-e pioposod to allow il rOs pier day while actually travelling on the public service, and limit the total to be paid to the whole Ministry to £"1000 in any one financial year. He proposed to retain a residence f r the Premier, the cost of maintenance of all but the liou-c itself K-iug defrayed by the occupant instead of tmni tiie public funds as heretofore, and that those not obtaining a house should receive a house allowance of £2OO }>er annum.

Legislative Expenditure. The Government will invite the Legislative Conned to express by resolution its ••pinion that the honorarium paid to its members should not exceed £IM), and we shall ask this House to reduce the honorarium paid hi its own members to £IOO, with an allowance of £7<o in consideration of the additional exjitiise necessarily incurred by them. We think that no payment should be made to the chairman of select committees of either House, that all officers of Parliament whose salaries are provided hy Act should not receive more than the statufary pay at present provided, all extra amounts being struck off, and the salaries of the other officers *-f the H"U=e being reasonably reduced. The Government to introduce a Bill to reduce the number of members of the House of Representatives to 70, inclusive of the Maori representatives, not to take effect until the end of the present Parliament. They will als-i invite the Legislative Council to devise a plan lo-w-inch their number may be reduced to 3b, The Civil Service.

The total number of persons in the pay of the colony, exclusive of police, unitary foices, and country postmasters, is 71 1 >3, and the amount they receive in salaiie-, pay, and wages is £1,01)4.273. Tile Government do not propose b> make any substantial alteration in the pay made to those persons, in receipt of less than IT's! r, year. It i> probable, however, that their numbers will be reduced. The Education gystem. Specialists agree that relatively to population and revenue, the system i- P-. c -t'y. They would cib: ft savings without weakening I o- system, limiting the ca])itatiou grant to is l->s .. ami i! t to pay capital: a; ui- .n any child under six’ years old ; but making provision sothat no country school shall be closed in c .ibeijutnce of this s-hauge. The saving ou the education v la Woijidh -ab at £ sj,i>vj ].er annum. Thu < 1 •» erao. nr, in making ic.iucti n ; , desire I I ail p .-sible fT.-idemtion for the per'oils directly affected, n. -re particularly as r-’gaids such po-t-il and telegraph officers and those u t« entitled t-. j«i*:--ns a*<l allowances. The Government will do their utmost to make the reducth ns and other changes pre-s with as little hardship as P-ssibV, sii’oi.-ct only to the n- ce--i:i - 1 2 the ease a- t i their paramount duty to tie. public. Amount of Seductions. Hi- prop: s )ls will reduce the t .til am omt of the departmental appropriation opt of the C .‘m-olidated Fund for a f»ll vear by £2.U,000. The Government •tie of opinion that if the reforms now being instituted are to be Jienuauenl it

will be ii’cofl-uiy t> clas-fy th > Oivn S.-mcu, limiting ill-Minib.-i- .■( each class, ami making a «'«-■" V 1,1 /' l' 1 ; 1 L I’arli.'vnicnl tho cniph»yin‘.?nt <>i i-xir.i hi (Uit.-iil'i iisi-tanc". 'l'lm I .overninent baitji 101 l in uii*piv.itß’ii, Iml il wmiul uo P 1 '■* matin-.: to inti--.lma: it during tho picsenl s.->-i,m. A loading pi-vimm m the hll. will l.a Hi.: il|-| ntint 1111 ; lit n( i. Anil Nn vie. 11 'iir.-i, th...uni. "ii;;"> : ' n l ■ munis ami promotions will bu iii.nli. J am.mnt expended on travall.np du. mtr hr year from llm 1-t < *ct..b«r, IN*, to Ih;:0th September, ISS7. was tin, Hi. ' (l.ivuriiinuiit are of ..pinion that very cm liiclurablo reductions should and cun « made in tins item, the leading I'rmeiplo t., bn kei.t in view being that the allowance is merely m memp legitimate exiieiists actually iiicniie.il.

Tho Crown and Native Lands Bating- Act, 1882. It is with much result that the Governincut propose that it ah.mid 1m repealuu from March next, with the necessary resorva- ; as as t.i securities giv. n under the ■ /nr nothin); can be fairer than tinIji i i ici pic that all lands by whomsoever owm"I should contribute t" the maintenance »f the roads nl tin: dislriel in which they are situated. By tho repeal of tins Acta very largo question is opened Hpthe question of the Maoris paying iate> upon their lands in settled districts as their follow settlers of the Knropean race are doing; and it seems to the Government that the time has arrived when Uni Maoris should ho placed on an equal footing on this and other respects wiUi their European fellow subjects in those districts which niuy bo properly called settled districts. Jfthe Act is repealed, there will be a saving to tho consolidated revenue through the land fund of i’3-1,000 per annum, and a further •saving of the expenditure of money now borrowed to pay tho native rates, of 110,000 per annum. Subsidies to Local Bodies. Tho subsidies under existing arrangements have always been regarded as a most precarious source nf revenue to the local bodies, and the late Government, no doubt with much regret, proposed to Parliament to reduce the amount nf the subsidies paid last year by one-half tor the current year, and ho also with much regret now made a similar proposal for the present Government, but hoped to be in a position to continue them at the same rate next year, if Parliament shall see fit. We have not got the money to spend, wo have been spending far too freely, and wo must now stay our hand for some time, even for useful local works, or raise funds for them locally.

Summary of Reductions. Salaries of Ministers i' 3,450 Allowances to members of the General Assembly 10,000 Departmental appropriations, including reductions in respect of Ministers’ residences, travelling allowances, &c 252,-150 Rates on Grown lands, &c. ... 32,000 Making a total for a full financial year 0f... ... £300,000 The amount to obtain by these reductions within the current financial year will be about £71,000, p articular* of which will bo found in a table appended to this statement. Further Proposals, lie proposed to increase the Propertytax from I.'MOths of a penny to one penny. It will also be necessary to meet the amount to be paid as compensation for loss of olllce. The Government propose that the proceeds of debentures issued under the Consolidated Stock Act, ISBI, for interest on investments of sinking fund, from March next, be applied to redeem yearly a like amount of this deficit until the debt is finally extinguished. We propose also that any credit balance of ordinary revenue from year to year shall be devoted to that purpose instead of being carried forward to the next account. Public Works.

The committee will be naturally anxious to know what the Government propose about pulie works and further borrowing. It will undoubtedly be necessary to place the North Island Main Trunk Railway loan upon the London muaket early next year, The Government therefore propose to place this loan upon the London market at tho first opportunity. There are three courses open to Parliament. 1. Wo may stop those works for which the funds are exhausted. 2. Wo may use some of the cash to the credit of the unexhausted items cither in X". 2 or Xo. 3 account to continue the work of the exhausted items. 3. Wo may decline to mire another loan. With regard to the first course, the Government is of opinion that all works, the stopping of which will not materially retard the progress of the country, should be stopped. Mere present iucoiiveiio nee must not be considered: but to go fin tiler than this would they thought ho a very unwise policy. Therefore, though with great reluctance, they r. commend that authority should be granted for a lean during the present session of T1,000,000, lobe raised at such time, and under such circumstances, as tho Government may deem must favourable. If Parliament agrees to this wo shall ask that Iho purpose of this loan shall ho distinctly delined ; that no new undertakidg shall be put in hand ; and, further, that we shall give a distinct pledge that no more borrowing will take place for three years from Ma rcb, 1888. In any case, they must place the North Island Trunk Railway loan on the market early next year, and as it is nnadvisable to make repeated applications to London for money, the Government think it important to ho in a position to place both hems on the market at the same time if they should bo so advised. The Minister for Public Works will be able to show in his statement that with tho expenditure they propose onr principal works can bo brought to what may bo called a state of interim completion, where we may pause without serious loss, and tho committee will observe the safeguards they propose and the essential conditions they annex, that no further borrowing -•shall take place, at all events, for three years from March, 18SS. This is therefore a practical application of that policy of “ tapering off ” desired by the colony. Midland Railway

Hu stilted tlio (lovernmont intended to do:il with the question in another way. The negotiations were still incomplete, but lie hoped to bring them to a satisfactory conclusion. Conclusion. It would be their earnest endeavour in 1888-89 to carry on the services 'of the colony, chargeable upon ordinary revenue, without being under the necessity of proposing additional taxation. With regard to the land fund, if proposals with re opect to it are agreed to, ho had every reason to hope that the revenue will be quite equal to expenditure without sacrificing the public interest. Major Atkinson concluded as follows “The account I have given neither conceals nor exageratos those difficulties, while it shows that it is entirely within our own power to overcome them. It needs but the will to do it, and the measures I have proposed, embodying as they do three trite, but vital economic principles, of foregoing such things as we can more easily spare than pay for, our making such money as wc spend produce the best possible result, and of increasing and encouraging wealtli producers of the colony, and encouraging also, last but not least, a wholesome self reliance. These measures, I trust, recommend themselves to this Committee, as, I believe, they will to the country at large.” Sir J. Vogel asked when the Premier proposed to allow the Statement to be debated. Major Atkinson said on Priday, if that was agreeable to the leader of the Opposition, fiir J, Yogei said that would bo convenient, but lie wuld like it to be understood that the debate might be postponed till Tuesday if the House was not ready.