8,—6,
INDEX.
PAGE Accident Insurance Branch (State Fire Insurance Office) .. . . 22 Additional revenue from taxation proposals .. .. . . 31 Additions to open lines .. .. .. . . .. 8 Advances—State Advances Office .. . . . . . . . . 14 Afforestation .. .. .. . . . . . . . . 9 Agriculture .. .. .. .. .. . . .. .. 17 Allocation of 1930 London loan .. .. .. . . . . 10 Amusements-tax increase .. .. .. .. .. , 35 Appropriations, permanent and annual .. .. . . . 4 Arapuni hydro-electric scheme .. .. .. .. .. 8 Backblock roads .. .. .. .. .. ... . . 8 Bank-note duty, increase in .. .. .. .. . . . . 34 Banking position .. .. .. .. .. . . . . 1 Borrowing-policy .. .. .. .. . . . . .. 14 Budget shortage .. .. .. .. .. .. . . 28 Budgetary procedure, alteration in .. .. . . .. 28 Capital works, expenditure on .. . . . . .. .. 7, 14 Cinematograph sound-films, additional duty on.. .. . . 32 Classification of debt .. .. .. .. . . . 13 Consolidation of country schools .. . . .. . . . . 18 Conversion operations .. .. .. . .. 12 Co-ordination of transport services . . . . . . .. 25 Correspondence School .. . . .. . . .. . 18 Customs duty increases .. .. .. .. .. .. 31, 32 Dargaville-Kirikopuni railway-line .. .. .. .. . . 7 Debt— Classification of .. .. .. .. .. .. 13 Debt operations, summary of .. . . .. .. . . 13 Domicile of .. .. .. .. .. .. 14 Increase in interest rates .. .. .. .. .. 13 Public debt . . .. .. .. .. 10 Repayments .. .. . . .. .. . . 11 Transfer of debt to New Zealand .. .. . . .. 12 Defence .. .. .. .. .. .. .. 30 Departmental balance-sheets .. .. .. .. . . . . 14 Direct taxation .. .. .. .. .. .. 2, 5 Disposal of profits of Public Trust Office .. .. .. .. 21 Earthquake relief funds .. .. .. . . .. .. 22 Economic position .. .. .. .. .. .. .. 2 Economy in administration .. .. .. .. .. . 3, 29 Education .. .. .. .. .. .. .. 18 Effect of trade position .. .. .. .. .. .. 2, 27 Estimates for 1930-31 .. .. .. .. .. .. 35 Exchange-rates .. .. .. .. .. .. .. 2, 27 Expenditure — 1929-30 .. .. .. .. .... .. 3 Comparative increases .. ~ . . .. . • • • 3 On public works .. .. .. . .. . . 7 Ordinary Revenue Account .. . . .. .. .. 3 Reductions in .. .. .. .. .. ..29, 31
I—B. 6.
8.—6
II
PAGE Funds of Ordinary Revenue Account .. .. .. .. .. 5 Gisborne-Napier railway-line .. .. .. .. .. .. 7 Government's borrowing-policy .. .. .. .. .. 14 Government Life Insurance Department . . .. .. .. 22 Government trading departments .. , . .. .. .. 21 Highways .. .. .. .. .. .. .. . . 8, 25 Hobsonville air base .. .. .. .. .. .. .. 9 Hydro-electric supply .. .. . . .. .. .. 8 Immigration .. .. .. .. .. .. .. 9 Income-tax, increase in .. .. .. .. .. .. 32 Increase in— Annual appropriations . . .. .. .. .. .. 3 Interest rates .. .. .. .. .. . . .. 13 Public debt .. .. .. .. .. .. .. 13 Interest .. .. .. .. .. .. .. 4, 13, 27 Irrigation and rivers improvement, &c. .. .. .. .. 9 Lake Coleridge electric-power scheme .. .. .. .. .. 8 Land-settlement . . .. . . .. .. .. .. 16 Development of Native lands .. .. .. .. .. 16 Purchase of private estates .. .. .. .. .. 17 Utilization of idle Crown lands .. .. .. .. .. 16 Land-tax adjustments .. .. .. .. .. .. 32 Life-insurance companies, alteration in taxation of .. .. .. 33 Loan expenditure, control of .. .. .. .. .. .. 14 Loans — London Loan, 1930 .. .. .. .. .. .. 10 New loans raised .. .. .. . . .. .. 13 Local authorities —Subsidies for unemployment relief . . .. .. 6, 19 Main highways .. .. .. .. .. .. .. 25 Mangahao- Waikaremoana electric-power scheme .. .. .. 8 Mental hospital and post-office buildings .. .. .. . . 9 Motor transport .. .. .. .. .. .. .. 25 Nelson to Inangahua railway-line .. .. . . .. .. 7 New loans raised .. .. . . .. .. .. .. 13 North Auckland Trunk railway-line .Ordinarv Revenue Account — *. . i Expenditure . . .. .. .. .. . . . . 3, 35 Result in funds of .. . . . . .. .. . , .5 Revenue .. .. .. .. . . .. . . 2, 35 Overseas trade .. .. .. . . .. . . . . 1 Pensions .. .. .. . . .. . . . . . . 4 Permanent appropriations .. .. . . .. . . . 3 Petrol-tax, increase in .. .. . . . . . . .. 26 Post Office savings-bank .. .. . . .. . . . Si Post Office investment certificates . . . . . . . . . . 21 Post and Telegraph Department .. . . .. . . . . 21 Primage duty . . .. . . . . . . . .. 2, 31 Primary-school buildings .. . . . . . . .. 9 Public buildings, expenditure on . . . . . . . . ' .. 9 Public debt .. .. .. " . . . . .. 10 Classification of .. .. . . . . . . .. 13 Conversion operations .. .. . . . . . . .. 11 Domicile of .. .. . . .. . - .. 14
8.—6,
III
Public debt—continued. page New loans raised .. .. .. .. .. . . 10 Reduction of external debt .. .. .. .. 12 Repayments .. .. .. , . .. .. . 11 Summary of operations .. .. .. .. . . 13 Public Trust Office .. . . .. .. .. 21 Public works .. .. .. .. ~ . . 7 Railway-construction .. .. .. .. .. .. 7 Railways — Branch lines subsidy discontinued.. .. .. .. .. 24 Expenditure on capital works .. .. .. . . .. 7 Improvements .. .. .. .. .. .. .. 8 Losses .. .. .. .. .. .. .. .. 24 Revenue and expenditure .. .. .. .. .. 24 Review of position .... . . .. .. .. .. 23 Rolling-stock, dwellings, &c. .. .. .. .. .. 8 Special advance to enable working-expenses to be met .. .. 4 Redemption of debt .. .. .. .. .. .. .. 11 Relief funds for earthquake distress .. .. .. .. .. 22 Reparations . . .. .. .. .. .. .. 20 Research work .. .. .. .. .. .. .. 17 Revenue— 1929 -30 .. .. .. .. .. .. .. 2 Decreases .. .. .. .. .. .. .. 3 Estimates for 1930-31 . . .. .. .. .. .. 35 From taxation .. .. .. .. .. .. .. 2, 35 Other than taxation .. .. .. .. .. .. 2 Rivers-improvement .. .. .. .. .. .. 9 Roads and highways.. . . .. .. .. .. .. 8, 26 Rural advances bonds .. .. .. .. .. .. 15 Rural Intermediate Credit Board .. .. .. .. .. 6, 16 Schools, expenditure on .. .. .. .. .. .. 9 Scientific and industrial research .. .. .. .. .. 17 Secondary industries .. .. .. .. .. .. 18 Secondary-school buildings .. .. .. .. .. .. 9 South Island Main Trunk railway-line . . .. .. .. .. 7 Spirituous liquors, increased duty on . . .. .. .. . . 32 Stamp and death duties, increase in . . .. .. .. .. 34 State Advances Office .. .. .. .. .. 14 Lending rates .. . . . . .. .. .. . . 15 Loans advanced . . . .. .. .. . , 15 Profits .. . . . . . . .. .. .. .. 15 Rural advances bonds . . . . .. .. .. .. 15 State coal-mines .. .. . . .. .. .. .. 22 State expenditure on unemployment relief .. .. .. . . 19 State Fire and Accident Insurance Office .. .. .. .. 21 State Forests Service .. .. .. .. .. .. 9 State superannuation funds .. . . .. .. .. 4, 23, 29 Stratford-Main Trunk railway-line .. .. .. .. .. 7 Subsidies on voluntary contributions and bequests to be restricted .. 29 Subsidies to — Hospital Boards, &c. .. .. .. .. .. .. 4, 29 Local authorities for relief of unemployment .. .. 5, 6, 20 State superannuation funds, &c. .. .. .. .. .. 4, 29 Summary — Debt operations . . .. .. .. .. .. 13 Year's operations . . .. .. .. .. .. 5 Supplementary estimates . . .. .. .. .. .. 35
Bi—6
IV
:■! V''•• ■ • :II(J ' ! ' I PAGE Taxation . . .. .. .. .. .. ~ ... 31 -- > 9 Commission .. .. .. .. .. .. .. 3 Direct . . .. .. .. . . ~ .. .. 2, 5 Land and income .. .. .. .. .. 2, 32-34 Proposals .. .. . . . . .. 31 State trading departments . . . . .. . .. 34 Tire and motor-spirits, &c., tax .. .. . . 4, 26 Timber duty increased .. .. . . .. ~ .. 32 Tire and motor-spirits, &c., tax .. . . .. .. . . 4 Tobacco duty, increase . .. . . . . . . 32 Totalizator-duty, increase .. . . .. . . .. 34 Trade position, effect of .. .. .. .. .. 2 Trading departments.. .. .. .. .. .. .. 21 Transport .. .. .. .. .. .. .. .. 25 Treasury bills .. .. .. .. .. .. . . 6 Unemployment relief, increase in subsidy rates, &c. .. .. .. 19 • War-debt repayments .. .. .. .. .. 11 Westport to Inangahua railway-line .. .. .. .. 7 Year's operations, summary of .. .. .. .. .. 5
8.—6
1930. NEW ZEALAND
FINANCIAL STATEMENT. (In Committee of Supply, 24th July, 1930.) BY THE HON. G. W. FORBES, MINISTER OF FINANCE.
Mr. Chairman, — In submitting this Financial Statement to honourable members, I am not unmindful of the circumstances which have resulted, in the honour devolving upon myself. As you are aware, the portfolio of Minister of Finance was until recently held by the late Right Hon. Sir Joseph Ward, who on account of ill health had unfortunately been compelled to resign an office which he held with intervals over a long period of years with credit to himself and very material benefit to the whole Dominion. By his death, the British Empire and this Dominion in particular have suffered a great loss. Sir Joseph Ward's long and distinguished public record will serve as a lasting monument to an outstanding statesman. The financial year which has just closed has been a difficult one from many points of view. Returns of overseas trade showed a decline in the value of exports, compared with that of the previous financial year, of over £8,000,000, while imports increased by over £4,000,000. The visible balance of trade for 1929-30 was, therefore, over £12,000,000 less favourable to the Dominion than for 1928-29. This reduction in the value of our exports is due almost entirely to the lower prices received. The declared value of butter, for instance, the principal export for the year, declined 8-5 per cent., whereas the reduction in quantity was only 0-4 per cent. ; and wool, the second in order of exports, declined by nearly £5,000,000, a fall of 32 per cent, in value, although a reduction in quantity of only 5 per cent. In considering these figures, however, account must be taken of the heavy stocks of produce held in New Zealand at the end of the year. These were substantially higher than those on hand at the end of the previous financial year, and the proceeds of the produce carried over will improve the export figures for the current year to the extent of the amount eventually realized. Turning now to the banking position, it will be remembered that at the end of March, 1929, coincident with a favourable balance of trade, deposits exceeded advances by £8,986,000, whereas by the same date the following year the excess deposits had declined to £326,000. During this period deposits declined by £1,343,000 and advances increased by £7,317,000, reflecting the decreased exports and increased imports for the year. This contraction of the national income means reduced spending-power both privately and nationally.
Overseas trade.
Banking position.
2—B. 6.
8.—6
2
Due partly to the adverse balance of trade, but more especially to the economic conditions obtaining in Australia, tlie exchange rates rose sharply against the New Zealand importer, and at the close of the financial year stood at £5 per cent. While the result has been to increase the cost of all imported goods, at the same time a considerable incentive has been given to local production. Moreover, the favourable exchange rates for exporters have to some extent reimbursed the primary producers for lower prices realized, so that the position is not without its compensations. Reviewing the whole position for the year, it will be seen that the present financial stringency is due principally to the decline in the value of our primary products. As these are responsible for approximately 99 per cent, of our exports, it is evident that any reduction in value affects the prosperity of the whole Dominion. This decline of export values is not peculiar to New Zealand, but is evidence of the fact that world prices are tending progressively downwards. We are therefore faced at present with a substantial reduction in our national income, to which we must adjust our expenditure accordingly. From the point of view of the public accounts, the Government is faced with reduced revenue from both Customs and land and income tax, and, in fact, from all heads of revenue, during the ensuing year, while, on the other hand, debt charges, pensions, and other statutory payments of a rigid nature will result in additional expenditure. Moreover, the railways have now become a liability on the Consolidated Fund, and will require financial assistance to enable them to carry on. It will be remembered that last year it was found necessary to reduce expenditure and increase taxation in order to ensure a balanced Budget. A country dependent on overseas investors for the greater part of the capital required for developmental purposes cannot afford to impair its credit by deficits. The steps taken by the Government to meet the financial position were successful, and, as has already been publicly announced, the year's transactions closed with a surplus of approximately £.150,000. EE VENUE. A summary of the ordinary revenue account of the Consolidated Fund is to be found in Table No. 3 attached to this Statement, and the actual details appear in the published accounts. Of a total revenue for the year of £25,349,861, the sum of £19,474,115 represents proceeds of taxation, the balance of £5,875,746 being interest earnings, fees, and miscellaneous departmental receipts. Of the proceeds of taxation, £8,837,335 is direct taxation, and the remaining £10,636,780 is indirect. Included in the total revenue is the sum of £1,510,790, being petrol-tax, duties, licenses, &c., in respect of motor-vehicles, which revenue is specially earmarked for main highways, leaving £23,839,071 available for the general purposes of the State. This represents an increase of £1,482,972 over the receipts of the previous year. The principal headings of increased revenue were " Customs " and " Land and income tax." Customs revenue showed an increase of £942,794 over that of last year, and exceeded the estimate by £497,046. This was due to the fact that the total imports were greater than anticipated, the imports for 1929-30 exceeding those of the previous year by over £4,000,000. The main items resulting in the increased revenue were duty on apparel and textiles (£140,317), spirituous liquors (£110,047), and motor-vehicles (£74,845). Also, the additional primage duty, which is included in Customs revenue, was responsible for approximately £310,000 of the total. In accordance with the provisions of the Act imposing the additional tax, the primage duty on foodstuffs and also on manures reverted to 1 per cent, on the 31st March last. It was prescribed in the Customs Amendment Act, 1929, that the additional primage duty on other classes of goods might be removed by Order in Council, and it was hoped at the time that it would be possible to do this on the Ist April last. In view of the present financial position, however, no such action could lie taken. Land and income tax receipts for the year totalled £5,040,675, as against £4,451,201 for the previous year, and exceeded the estimate by £147,675. The Commission set up to consider cases of hardship arising out of the amendment to the law last session, whereby farmers holding land of an unimproved value of £14,000 or over are assessable with special land-tax, considered 531 applications,
Exchange rates.
Economic position.
Revenue.
Primage duty.
Direct taxation.
3
8.—6
declined twenty-three, and granted remissions totalling £118,000. In all cases the Commission's recommendations were adopted by the Government. After allowing for the remissions, the additional tax received amounted to £240,000. In problems of taxation, as in many other matters governed by arbitrary rates, absolute justice can never be completely attained, but the provision for appeal in the case of special land-tax at least prevented undue hardship being imposed on particular individuals. Notwithstanding the large amount of remissions by the Commission, the data obtained from the income-tax returns of large farming incomes, also required by the legislation passed last session, clearly proved that the much-disputed contention contained in last year's Budget—that large farming incomes have not in recent years borne their fair share of taxation—was in accordance with the facts. This was proved by the fact that in 180 cases the income-tax on farming incomes exceeded the ordinary land-tax and special land-tax added together. The excess income-tax in these cases amounted to £47,500. This means that formerly some farming incomes were contributing less than half of their fair share of taxation, and clearly shows the equity of obtaining part of the additional revenue required for last year from this section of the community. The total increase in income-tax revenue due to the assessment of farming incomes amounted to £94,000, including the aforementioned sum of £47,500. The principal decreases of revenue were in respect of stamp and death duties (£170,428) —the latter being obviously difficult to forecast —and interest on railway capital liability (£199,011). The decrease in interest-recoveries from the railways is due to the writing-off of £8,100,000 of railway capital. This reduction, however, was offset by a decrease in expenditure resulting from the cancellation of the subsidies previously paid on branch lines and isolated sections of railway, and an increase in the rate of interest payable from 4-|- per cent, to 4J per cent., the reason for which I will explain later. EXPENDITURE. The net expenditure of the Ordinary Revenue Account for the year totalled £25,200,882, compared with £24,176,928 for the previous financial year. Tlie net increase of £1,023,954 is made up of £983,008 in permanent appropriations, and the balance of £40,946 in annual appropriations. The modest increase in the latter is evidence of the very successful efforts made by the Government to keep departmental expenditure down to a minimum. Expenditure under permanent appropriations consists of interest, debt-repayment charges, and payments under special Acts of the Legislature, whereas the annual appropriations cover the various departmental votes. Notwithstanding the fact that the estimates for these votes were most carefully overhauled last year, the close control maintained over expenditure resulted in the votes being underspent by approximately £218,000. Permanent Appropriations. Briefly, the expenditure under permanent appropriations consisted of the following items : — Expenditure, Increase over the 1929-30. previous Year. £ £ Interest and debt-repayment .. .. 10,697,242 586,501 Pensions and family allowances .. .. 2,749,898 92,364 Proceeds of petrol-tax and other earmarked revenues appropriated to Main Highways Account and local authorities .. .. 1,509,410 274,394 Subsidies to Hospital Boards and local authorities .. .. .. .. 952,144 62,390 Subsidies to Superannuation Funds and National Provident Fund .. .. .. 381,548 176,832 Other items under various special Acts .. 937,363 209,473* Total .. .. ..£17,227,605 £983,008
Taxation Commission.
Revenue decreases.
Expenditure.
Comparative increases.
* Decrease.
8.—6.
Interest.
Further details of the expenditure in comparison with that of the previous year will be found in Table No. 8 attached to this Statement. The increase under the heading of " Debt charges" includes £459,751 for interest, part of which is an outcome of the large conversion operations in connection with the 4-per-cent. 1929 consolidated stock, to which I will refer more particularly when dealing with the public debt. The balance of the increase comes from the new borrowing for carrying on the developmental programme of public works and land-settlement, &c. The debt-repayment increase arises from the fact that under the general debt-repayment scheme, together with the funded-debt agreement with the British Government, the contribution for debt-repayment is increased by the greater part of the savings in interest on debt repaid, and consequently does not increase the burden on taxation, because if the debt had not been repaid the interest charge would have remained. In regard to pensions, these generally must be expected to increase with the population. Of the increase for the year, old-age pensions were responsible for £49,250 and war pensions £25,776. It might perhaps be thought that the latter should be falling off instead of increasing, but, as a matter of fact, many of the returned men are only now feeling the full effect of their war injuries. The taxation derived from tire and motor-spirits tax, fees, fines, &c., is credited in the first instance to the Consolidated Fund, and transferred as required to the Main Highways Revenue Fund, or paid to local authorities, &c., in accordance with the statutory provisions. In so far as the Consolidated Fund is concerned, therefore, the increased expenditure is offset by increased revenue. The increase of £62,390 under the heading of " Subsidies to Hospital Boards and local authorities " consists of £58,767 in respect of the former, and the balance, £3,623, in respect of the latter. The rates of hospital subsidy are statutory, and the increase is due to the added cost of public hospitals throughout the Dominion, in connection with which I may add that the total charge on public funds, both local and Government, per head of population has risen from 15s. sd. in 1923-24 to £l Is. 4d. in 1929-30. Attention was drawn in the last Budget to the unsatisfactory state of the finances of the State superannuation funds, and in order to meet part of the shortage an additional £100,000 was paid to the Public Service and £75,000 to the Teachers' Superannuation Funds during the year. The balance of the increased subsidies is in respect of the National Provident Fund. The balance of miscellaneous items under special Acts shows a decrease of £209,473. This is due principally to the fact that as from the Ist April, 1929, the subsidy in respect of isolated sections and branch lines of railway was discontinued, but the sum of £29,929 came to charge during the year, being the subsidy owing as at the 31st March, 1929. The subsidy paid during the previous financial year was £496,578, so that the reduction in this item amounted to £466,649. Against this, however, must be set the advance of £150,000 from the Consolidated Fund to Working Railways Account to enable the expenditure for the year to be met. This advance cannot be recovered and will require to be written off. It was accordingly made a charge against revenue for the year. The net decrease on account of subsidies to the Railways was thus £316,649 ; but this reduction did not represent a net gain to the Consolidated Fund, as it was more than offset on the revenue side by a reduced interest recovery amounting to £344,250 on account of the £8,100,000 of capital written off. Annual Appropriations. The net expenditure under this heading amounted to £7,973,277, compared with £7,932,331 for 1928-29. Almost half of the total under annual appropriations is in respect of vote " Education," the expenditure for the year being £3,218,828, which is £126,532 in excess of that for the previous year. While on the subject of education, I would like to say that the expenditure oat of the vote is by no means the total cost to the State. In addition, there is expenditure under various Acts of Parliament, included under permanent appropriations, and also expenditure out of the revenue derived from national endowments and reserves (details are shown in Table No. 23 attached to this Statement). Then
Debt-repayment.
Pensions.
Tire and motorspirits, &c., tax.
Subsidies to Hospital Boards, &c.
Superannuation funds.
Railways.
Annual appropriations.
4
8.-6
5
there is the annual charge, amounting to approximately £350,000, or interest and debt-repayment charges on the loan expenditure. Thus the total cost to the Dominion for education now exceeds £4,500,000 per annum. An increase of £23,494 is also shown under the Marine Department's vote. This was brought about by the purchase of a new lighthouse tender to replace the s.s. " Tutanekai." The balance of the purchase-price will come to charge during this financial year. These and other smaller increases in the expenditure were partly offset by comparative decreases under other votes, the net increase under annual appropriations, as already stated, being £40,946. SUMMARY OF THE YEAR'S OPERATIONS. The transactions for the year resulted in a surplus, as follows : — Revenue. Taxation— £ £ Direct .. .. .. .. .. .. 8,837,335 Indirect .. .. .. .. .. 10,636,780 19,474,115 Other receipts .. .. .. .. .. .. 5,875,746 £25,349,861 Expenditure. £ £ Permanent appropriations .. .. .. 20,297,824 Less credits in reduction .. .. 3,070,219 t 17,227,605 Annual appropriations .. .. 9,226,500 Less credits in aid .. .. 1,253,223 7,973,277 Net expenditure chargeable against revenue .. 25,200,882 Surplus .. .. .. .. .. £148,979 The following shows the year's results as reflected in the Ordinary Revenue Account of the Consolidated Fund : — £ Balance brought forward, Ist April, 1929., .. .. 2,453,541 Add— £ Surplus, 1929-30 .. .. .. .. 148,979 Advance to Native Trustee repaid (net) .. 33,000 181,979 Less— 2,635,520 Advances to Rural Intermediate Credit Board 162,000 Subsidies to local authorities for unemployment relief .. .. .. .. .. 111,728 Assistance towards restoration of public works damaged by earthquake .. .. 3,516 Charges and expenses of raising loans .. 1,939 279,183 Balance, 31st March, 1930 .. .. .. £2,356,337 This balance was made up as follows : — £ Cash ~ .... . . . . .. 1,510,239 Imprests outstanding .. .. .. .. 132,132 Investments .. .. .. .. .. 713,966 £2,356,337
Summary of year's operations.
Result in funds of Ordinary Revenue Account.
8.—6
6
The repayment by the Native Trustee of £33,000 was in respect of advances made during the previous financial year in terms of the Native Trustee Act, 1920 (section 17), whereby the Minister of Finance is authorized to advance moneys when the balance in the Native Trustee's Account is insufficient to meet the lawful charges thereon. A further £16,500 was advanced and repaid within the year. The Rural Intermediate Credit Act, 1927 (section 16), provides for advances out of the Ordinary Revenue Account of the Consolidated Fund to the Rural Intermediate Credit Board of a total amount of £400,000, free of interest for ten years from the date of the first advance. The advances totalling £162,000 referred to above represent the amount paid over during the year. In addition, advances aggregating £110,100 were paid over in 1928-29. Regarding the subsidies paid to local authorities for unemployment relief, the amount of £111,728 represents the actual payment made during the year. Unemployment relief works undertaken by local authorities are now subsidized by the State on the basis of £2 for £l of the labour-costs in urban and suburban districts and £l for £l on both materials and wages in the case of rural districts ; but I will deal with the whole matter of unemployment relief presently. The expenditure of £3,516 as a charge against the Consolidated Fund on account of the damage caused by the earthquake last year was authorized by the Finance Act, 1929 (section 9). The expenditure was mainly in respect of subsidies to local authorities. The total cost to the State in connection with the earthquake damage was, however, much greater than this, and I will deal fully with the matter later. TREASURY BILLS. Revenue Treasury bills amounting in the aggregate to £4,595,000 were issued during the year, but £1,200,000 of these bills represented only internal transactions between Treasury accounts to facilitate the financing of the year's operations. Of the bills issued to the public, £2,695,000 was the maximum amount current at any one time. This last amount included £145,000 issued in New Zealand at interestrates of 5 and 5J per cent., and £2,550,000 issued in London at a discount varying from per cent, down to 4 per cent., the market rate falling to this extent during the period Ist November to 31st December, 1929, when the bills were issued. All of these bills were issued in anticipation of revenue, and were duly paid off during February and March last, when the income-tax revenue came to hand. Starting on the 27th February, 1930, a series of redemption bills were sold in London a,t a discount varying from 3-| per cent, down to 2| per cent. The necessity for the issue of these bills however, arose out of exchange difficulties and the prohibitive cost of £5 per cent, for telegraphing money to London. At the 31st March £2,650,000 of these bills were outstanding, but they were covered for the most part by £2,500,000 of fixed deposits in New Zealand. A total of £1,500,000 of these deposits bore interest at 3| per cent., and £1,000,000 at per cent. It will thus be seen that the cost of the redemption bills was more than offset by the interest earned on the fixed deposits. It will perhaps be observed that during 1929-30 much greater use was made of Treasury bills than had been the case in recent years. The reasons for this are the decreasing working-balance in the Consolidated Fund, the mobilization and use of some millions of cash in London over and above normal requirements in connection with the conversion operations (with which I will deal presently), and the abnormal exchange-rates New Zealand on London. The combination of these factors made the financing of the year's operations a somewhat involved and intricate matter.
Repayment by Native Trustee.
Rural Intermediate Credit Board.
Subsidies on account of unemployment relief.
Expenditure on account of earthquake.
Treasury bills.
7
8.—6
PUBLIC WORKS. I wish now to deal with another important section of the State's activities, and that is in respect of public works. During the year substantial progress was made towards the completion of the large undertakings in hand, and as a result the expenditure was somewhat higher than for the previous year. The actual expenditure under the several headings was as follows:— £ Railway construction, additions, and improvements 3,315,612 Main highways and roads .. .. .. 2,288,217 Hydro-electric supply .. .. .. .. 581,975 Telegraphs and telephones .. .. .. 657,29.1 Public buildings (including schools) .. .. 817.970 Irrigation, land and river improvements .. .. 283,872 Other public works .. .. .. .. 136,881 Total .. .. .. .. £8,081,818 Works in hand have been proceeded with as rapidly as possible in order, firstly, to make them productive at the earliest possible moment, and, secondly, to assist in relieving the unemployment position. The expenditure on railways —namely, £3,315,612 —was, as in previous years, the largest item in the total expenditure. As most honourable members are aware, the Public Works Department undertakes the construction of all new lines, and when completed they are handed over to the Railway Department at cost. During last financial year no new sections of railway were handed over, but some twentyseven miles north of Napier, and the Auckland-Westfield Deviation, about ten miles in length, are both rapidly approaching completion, and will be transferred to the Railway Department this year. Commencing from the north, expenditure amounting to £128,083 was incurred in extending the Main Trunk line beyond Okaihau. Construction work is particularly difficult and expensive in the North Auckland district on account of the instability of the ground, and, as has already been announced, the Government does not propose to carry the extension beyond Rangihua, where contact is obtained with the Hokianga River. The section of line connecting the Dargaville - Kaihu Valley Railway to the North Island Main Trunk line at Kirikopuni resulted in expenditure amounting to £144,000. It is expected that this section will be completed in about nine months. Proceeding southward, the next line under construction is the Gisborne-Napier Railway. When the United Government came into office the position in regard to the route was carefully reviewed, and it was decided to adopt what is known as the coastal route. This route, in addition to saving about eight miles in actual distance, reduces the amount of construction work by about twenty-six miles, so that, in addition to reduced cost, the line will be in operation earlier than if the inland route had been adopted. On the section between Gisborne and Waikokopu the expenditure was £266,981, and between Putorino and Wairoa £343,777 was expended on the usual classes of railway-construction, including practically the completion of large viaducts at Matahoura and Waikari. The Stratford to Main Trunk section was vigorously prosecuted during the year, and the amount of £372,476 expended in connection therewith, principally on heavy tunnelling-work. Coming now to the South Island, preliminary work in connection with the ! construction of the last link in the South Island Main Trunk Railway —namely, the section between Parnassus and Wharanui —resulted in expenditure amounting to £74,857. The work consisted mainly of formation of access roads and accommodation for workers. As regards the other sections of construction work in the South Island —namely, i the Westport-Inangahua and Nelson-Inangahua lines—the work on which was j seriously interrupted by the earthquake in June, 1929, a large amount of the expenditure has been incurred in connection with restoration work. The expenditure
Public-works expenditure, j
Expenditure on railways.
North Auckland Trunk line.
DargavilleKirikopuni line.
Gisborne- Napier line.
Stratford to Main Trunk line.
South Island Main Trunk.
West port Inangahua and NelsonInangahua lines,
8.—6
8
during the year amounted to £88,113 in connection with the former line and £72,215 in respect of the latter. The work was further dislocated by the slips which continued to fall after the earthquake, so that it is only recently that work has been resumed. Of the total expenditure on railways, the sum of £393,072 was in respect of additions to open lines. Of this amount, £347,853 was expended on new rollingstock and £44,494 on the motor-omnibus system at Wellington. In addition to construction works undertaken from the Public Works Fund, capital expenditure in connection with the Railways is also carried out as a charge against the loan - moneys allocated to Railways Improvement Account. The expenditure under this heading amounted to £1,285,086, including £310,927 in connection with the Tawa Flat Deviation, and £62,380 in respect of the AucklandWestfield Deviation. The next item of public-works expenditure to be considered is that of highways and roads. The expenditure on the former was £1,097,148, and on the latter £1,191,069, a total of £2,288,217. In both cases the expenditure represents a record for a single year. As regards main highways, the increased expenditure is to be expected owing to the declaration of further lengths of roads as main highways and the necessity of finding additional work for the unemployed. Under the heading of unemployment relief the sum of £238,565 was expended on main highways. The funds for main highways were provided as follows : £750,000 from .Main Highways Revenue Fund (being proceeds of tire and petrol tax, &c.), £200,000 transferred from the Public Works Fund, on which the charges have heretofore been met by the general taxpayer, and the balance represents moneys specifically raised for main highways, on which the annual charges are met from motor taxation. Regarding the expenditure on roads, the large increase is due to the fact that the greater part of the funds provided for the relief of unemployment last year were applied to road-construction. Of the various classes of public works, road-construc-tion is undoubtedly one of the most suitable for unemployment relief, involving as it does the highest proportion of labour cost to total cost, besides providing an asset which facilitates transport and communication—pre-requisites for successful settlement and production under modern conditions. Last year's provision for ordinary metalling and improvement of baekbloek settlement roads, for the most part in co-operation with County Councils, was £400,000, of which £353,337 was expended. It is proposed to set aside an additional amount this financial year for the purpose of providing access to the outlying districts of the Dominion. This represents a further contribution by the Government towards encouraging primary production. The expenditure of £581,975 on hydro-electric-supply works was the lowest since 1922-23. The capital expenditure under this heading must be expected to taper off each year now, as, with the exception of the Arapuni and Waitaki River, all the schemes are now in operation. As honourable members are aware, it was unfortunately found necessary to close down the plant at Arapuni, owing to serious faults having developed. Pending a comprehensive report on the matter, arrangements have been made to bring the various stand-by plants into operation, assisted by the Horahora plant, in order to avoid dislocation of the electrical services throughout the Auckland Province. Honourable members may rest assured that full details of the Government's proposals in connection with Arapuni will be made available as soon as the position has been fully investigated. The Waitaki River scheme is the only other large one remaining to be completed, although extensions will probably be required for all of the several schemes from time to time. The interconnected Mangahao - Waikaremoana scheme was operated continuously during the year, and, although the accounts disclose a net loss of £55,438 after charging interest on capital and depreciation, the position is substantially better than that for the previous financial year, when the loss amounted to £102,800. The Lake Coleridge scheme has now reached a very satisfactory position, as last year, in addition to paying off all arrears of sinking fund, the sum of £44,000 was transferred to general reserve.
Additions to open lines, &c.
Railwaysimprovement expenditure.
Roads and highways.
Baekbloek roads.
Hydro-electric supply.
MangahaoWaikaremoana seheme.
Lake Coleridge scheme.
9
8.—6;
The next item to be considered is public buildings, on which the expenditure for the year was £817,970. Of this amount £428,764 was in respect of schools, and charged against Education Loans Account, and the balance of £389,206 was expended on post-offices, hospitals, departmental and other buildings. More than half of the expenditure on schools was in connection with primary schools, in accordance with the Government's policy of giving precedence to the needs of outlying districts where no schools at present exist, and in providing additions where the existing accommodation is considered insufficient. The policy also of remodelling schools to bring them up to date as regards ventilation, lighting, &c., has added much to the comfort and health of the pupils. The needs of secondary schools and University colleges have not been overlooked, and substantial expenditure was incurred under these headings during the year. Among these may be mentioned the Massey Agricultural College, which was responsible for expenditure amounting to £45,304 for the year ; Wellington College, for £22,000 (total amount authorized £52,000) ; Nelson College Hostel, £4,258 on account of purchase of site, while a further £41,000 has been authorized towards erection of the building. Among the other amounts approved during the year were £25,000 for a post-primary school at Otahuhu ; £30,000 for the Wanganui Technical College Hostel, Wanganui; and also sundry amounts for Girls' Homes at Christchurch and Timaru, and a new Boys' Hostel at Mount Albert, Auckland. The expenditure on buildings which was charged against Public Works Fund was mainly in respect of mental-hospital buildings and post-offices. The work of providing mental-hospital accommodation has in recent years fallen somewhat into arrear, and an effort was made to bring the accommodation more into line with actual requirements. Post - offices were responsible for £107,393 of the total expenditure, but, as the annual charges on such expenditure are met out of Post Office revenue, there is no charge on taxation. Under the heading of " Irrigation, land and river improvements," the principal items of expenditure were £71,823 in respect of irrigation works in Central Otago and the Poolburn Dam (Ida Valley scheme), and £27,361 on account of the Waihou and Ohinemuri Rivers improvement works, which are now nearly complete. The balance was expended on miscellaneous drainage and flood - protection works, Hauraki Plains settlement works, Rangitaiki land - drainage, and swamp - lands drainage generally. The balance of expenditure on public works includes £46,766 for Defence works, mainly at the Hobsonville Air Base, and £41,765 for immigration, the latter being the lowest annual expenditure since 1920-21. The Government's policy of restricted immigration is still being enforced, and assistance is at present being given only to separated families, single women, juveniles, and domestic servants. It is proposed to continue the restrictions until the unemployment difficulty is overcome. Further particulars of all these works will be given in the Public Works Statement. The greater part of the expenditure during the year, however, was incurred in pushing on with the various large works which have now been under construction for several years. I may add that any new capital works that are proposed are subjected to a very careful scrutiny to ensure that no unnecessary or wasteful works are undertaken, as it is realized that all unremunerative expenditure out of loan-moneys results in a continuing liability on the taxpayer in respect of interest and maintenance charges over a long period of years. AFFORESTATION. The necessity for conserving the timber resources of the Dominion is fully appreciated by the Government, and the steps taken to this end consist, firstly, in controlling forest-destruction, and, secondly, in the acquisition and planting of additional areas as State forests. The establishment of plantations by the State Forest Service was considerably accelerated during the past year principally with a view to providing work for the unemployed, and as a result an area of approximately 56,560 acres was added to the
Public buildings.
Primary-school buildings.
Secondary-school buildings.
Mental hospital and post-office buildings.
Irrigation, swamp-drainage, &e,
Air base, &c.
Afforestation.
Establishment of plantations.
3—B. 6.
B.—6,
10
total plantations, which far exceeds the area planted in any one year by any other State in the British Empire. The total area now planted is approximately 253,800 acres, which is also a record for the Empire. At 31st March last the total area under State forests and plantations amounted to about 7,700,000 acres, or approximately 12 per cent, of the total superficial area of the Dominion. The actual expenditure by the Department for the year amounted to £360,813, and the total assets are now valued at over £38,000,000. LONDON LOAN, 1930. To enable the Government to pursue its public-works programme during the ensuing year, a loan of £5,500,000, bearing interest at 5 per cent, per annum, was issued in London on the sth May, 1930. The issue price was £99 per cent., and the loan is repayable at par on the 15th December, 1949. Including redemption of the discount over the period of the loan, the return to investors is £5 Is. Bd. per cent., and the cost to the State £5 ss. 2d. per cent. This cost is about J per cent, higher than that of the £7,000,000 loan of January, 1929, but in the interval the financial world had been much disturbed by the boom and collapse on the New York Stock Exchange, the " Hatry " crisis in London, and the demand for gold by European countries, while the supply of capital for long-term investments was also affected by the almost world-wide depression in business resulting from falling prices. The loan was oversubscribed on the day of issue, and this, in conjunction with the terms of issue, which were substantially better than those of recent issues by other dominions, is a striking proof of our credit abroad. In terms of the prospectus, the proceeds of the loan will be expended on the following purposes : — £ Public works—General purposes .. .. 4,500,000 Development of hydro-electric-power works .. 500,000 Construction of and additions to railways and rollingstock .. .. .. .. .. 500,000 £5,500,000 PUBLIC DEBT. The public debt as at 31st March, 1930, amounted to £267,383,343, the net increase for the last financial year being £3,191,360. This net increase is much smaller than usual, owing to the fact that £5,379,105 of the £7,000,000 loan of January, 1929, was received during the previous financial year. It may be explained that this £7,000,000 loan wisely raised by the late Sir Joseph Ward much earlier than was customary, was not drawn upon to meet requirements in 1928-29, but the proceeds were carried forward intact into last financial year. The last instalment of the loan, amounting to £1,620,895, was not received until April, 1.929, and thus came into last year's debt figures. The real increase in the public debt on account of last financial year was thus the actual net increase of £3,191,360, plus £5,379,105 carried forward, a total of £8,570,465. Apart from conversion operations, which I will deal with presently, no loan was floated in London during 1929-30. Including the portion of the £7,000,000 added to the debt during the previous financial year, the aggregate of additions to the debt on account of the year was £11,099,325. This amount was raised for the following purposes : —- £ Public works .. .. .. .. 7,988,250 State advances .. .. .. 2,144,075 Land-settlement .. .. .. 615,000 State forests .. .. .. .. 352,000 £11,099,325
London loan. 1930.
Loan oversubscribed.
Allocation of proceeds.
Public debt.
Allocation of aggregate addition to debt.
11
8.—6,
Of this total, £7,000,000 was raised in London as aforesaid, the cost being £5 os. Id. per cent., allowing for the redemption of the discount and expenses of issue over the period of the loan. The balance of £4,099,325 came from local issues—£1,677,325, mostly at 4 per cent, to 4§ per cent., from departmental investments, and £2,422,000 from the public, £726,620 bearing interest at 5-g per cent, and £1,695,380 at per cent. The amount for public works, which absorbed the £7,000,000 London loan, provided for the capital expenditure under that heading previously referred to in this Statement. So far as State advances are concerned, I may say that the £2,144,075 shown above did not represent the sum total of the additional capital made available during the year, for over £1,000,000 from previous issues was carried forward from the previous year, while the sale of rural bonds —which, of course, do not form part of the public debt —realized £1,114,486. The total amount of new capital paid over to the State Advances Office during the year amounted to £4,340,224. As a partial set-off against the new loans raised, debt to the amount of £2,528,860 was repaid during the year, £1,301,897 of which debt was domiciled in London and £1,226,963 in New Zealand. These repayments were effected as follows : — £ Under Repayment of Public Debt Act, 1925 .. 1,158,472 Under funded-debt agreement with British Government . . . . . . .. .. 405,676 Out of reparation-moneys .. .. .. 258,960 From Discharged Soldiers Settlement Account .. 425,770 From other accounts .. .. .. .. 266,534 Discount on purchases of stock . . .. . . 9,523 Raised for redemption, 1928-29, and applied last year 3,925 £2,528,860 The first two items represent the operations under the statutory debt-repay-ment schemes, the funds for which are drawn from the Consolidated Fund. The funded-debt agreement in question provides for the repayment of an amount (originally £27,532,164, but as at the 31st March last reduced to £24,747,342) due to the British Government on account of advances during the war. The payments, being made on an annuity basis, will result in the whole amount due being repaid by about 1958. The general debt-repayment scheme, which, apart from certain special exceptions automatically covers the remainder of the public debt, provides for repayment over a period of approximately sixty years, dating from 1925 in the case of loans outstanding at that time, and from the year of issue in the case of subsequent loans. The scheme operates on an annuity principle like a table mortgage, the greater part of the savings in interest on debt repaid being annually applied to further repayments. Thus the amount available for debt - repayment increases steadily year by year without increasing the total charges on the Consolidated Fund. The funds thus made available are used each year in buying stock and debentures on the market, or for redemption at maturity. A feature of some of the recent prospectuses of our London loans was the provision for the purchase of securities on the market for repayment of debt. Since the inception of the scheme to the 31st March last £5,036,036 of debt has been repaid under this scheme at a cost of £5,008,399. The repayments during the financial year included £1,097,744 of war debt, which over the past eight years has been reduced by a total of £12,462,148, or approximately 15 per cent. During 1929-30 the balance of the 4-per-cent. consolidated stock which matured Ist November, 1929, was disposed of in a manner that cannot but be regarded as satisfactory in view of the financial conditions that obtained during the year. A total of £11,656,856 was still outstanding on the Ist April, 1929. During the
State advances.
Debt-repayment,
War debt.
Conversion operations.
8.—6.
12
early part of the financial year further parcels of the stock, totalling £1,925,500, were purchased on the London market at prices slightly below par. The funds for these purchases were mainly provided from New Zealand, having been borrowed locally at rates of interest not exceeding 5-| per cent. These cancellations reduced the amount of 4-per-cent. consolidated stock outstanding to £9,731,356. This was the position on the 14th September, 1929, when a further £5,000,000 conversion offer was underwritten. The terms of the offer were to convert the 4-per-cent. 1929 stock into 5-per-cent. stock to mature on the Ist July, 1945, the Government, however, having the option of redeeming the stock at par on or after the Ist July, 1935, on giving three months' notice. The conversion was at par, but a cash payment of £2, payable on Ist November, 1929, was offered. This offer was taken up by holders to the extent of £3,628,102, and the balance of the £5,000,000 was taken up by the underwriters on the maturity date, Ist November. The offer, of course involved an increase in the interest payable, but that was inevitable in view of the market rates effective at the time. Indeed, the Dominion was fortunate in obtaining conversion on these terms, for the London market at that time was feeling the effect of the boom on the New York Exchange, and shortly after the offer was made the market hardened sharply as a result of the violent disturbances in New York, accentuated by what is known as the " Hatry crisis "in London. The cost of the conversion offer worked out at £5 7s. 3d. per cent. The balance of the 4-per-cent. consolidated stock, amounting to £4,731,356, was redeemed on the maturity date, the whole of the necessary funds being provided from New Zealand. £4,047,235 of the amount was obtained from the proceeds of local issues, partly for departmental investments (mostly at 4 per cent, interest), and partly to the public, at 5g- per cent, interest; £672,000 came from public-debt-repayment moneys and £12,121 from special sinking funds. To sum up all the operations concerned therein, the £29,490,852 of 4-per-cent. consolidated stock was disposed of as follows : — Converted into other stock .. .. 21,759,496 Redeemed out of the proceeds of special London issues for purchases on the market . . . . 575,949 Redeemed out of the proceeds of New Zealand issues in redemption . . . . .. . . 5,968,786 Redeemed out of public - debt - repayment moneys and sinking fund .. .. .. .. 1,186,621 £29,490,852 The stock issued for the first two items mentioned above amounted in the aggregate to £23,074,789, of which all but £31,350 was issued in London, representing an increase in the debt of £739,344. Allowing for the redemption of this amount of additional stock and other expenses of conversion over the respective periods of the new stock, the average annual cost of this part of the debt is now £4 19s. 6d. per cent, per annum. The issues in redemption in New Zealand resulted in no increase in the debt, and the average annual cost of the new securities issued locally is £4 12s. lOcl. per cent. Redemptions out of debt-repayment moneys and sinking funds, of course, represent definite reductions of debt. One result of all these operations is that our external debt was reduced by £6,400,000, which economically means that the Dominion has discharged its obligations to that extent. The redemption of such a large amount of London debt, necessitating the transfer of over £7,000,000 of cash from New Zealand over the period of the transactions, was very favourably commented upon in that financial centre. Local sales of s|-per-cent. securities, aided by departmental investments, provided £5,959,288 of the required funds, the balance for the repayments being
Summary.
Reduction of externa! debt.
Local sales.
8.—6,
13
drawn from revenue and sinking funds. In addition, as previously stated, a considerable amount was also provided out of local resources for State advances, landsettlement, &c. The Government has been blamed in some quarters for increasing the price : of money to the detriment of local bodies, mortgagors, and the community generally, 1 but a moment's consideration will show how absurd are such statements. The Government naturally is anxious to obtain capital for developmental purposes as cheaply as possible, but it must be recognized that the Government has no control over the price of capital any more than over the prices of wool, butter, or anything else that commands a world's market; in fact, nothing is more liquid or more universally in demand than capital. Far from the Government's action being responsible for the increase in the rate of interest, the offer of 5|- per cent, on local issues of Government stock and debentures, made on the 9th January, 1930, was merely recognition of the fact that the price of capital had risen. In other words, the proceeds of the s|-per-cent. issue did not provide enough capital to meet requirements, it being quite evident that the money was going elsewhere. Accordingly, there was no option but to increase the rate, and the fact that the sj-per-cent. rate has not brought in more capital than is needed indicates that the new rate is not higher than is necessary. While the rate remained at 5|- per cent, it was well known that large amounts in the aggregate were going to Australia for investment, where Government securities were obtainable with a yield of about 5f per cent. The Government's action probably had the effect of checking this outflow of capital, for the time being at any rate. In addition, the Dominion could not hope wholly to escape the repercussions from the violent monetary disturbances in London and New York, to which I have already referred. In fact, the increase in the rate of interest was postponed as long as possible, and was made only when conditions outside the control, of the Government rendered this step imperative. I have dealt with this question of interest-rates at some length because there seems to be a good deal of misapprehension in regard to it. Indeed, one financial firm outside New Zealand, referring to these criticisms, wrote stating that the Government had taken the wisest course in the light of all the circumstances. To return to the position of the public debt, the transactions during 1929-30 £ may be summarized as follows:— £ c Debt as at Ist April, 1929 . . . . .. . . 264,191,983 Add new loans raised— £ Ordinary .. .. .. .. .. 3,576,145 State advances .. .. .. .. 2,144,075 5,720,220 269,912,203 Less redemptions— Ordinary .. .. .. .. .. 766,350 War .. .. .. .. .. 1,097,744 Discharged soldiers .. .. .. 425,770 State advances . . . . .. .. 238,996 2,528,860 Debt as at 31st March, 1930 . . . . £267,383,343 Classification of the Debt. £ c Ordinary .. .. .. .. .. 154,297,847 d( War .. .. .. .. .. 69,783,525 Discharged soldiers .. .. .. .. 7,861,886 State advances .. .. .. .. 35,440,085 £267,383,343
Increase in interest rate.
Summary of debt operations
Classification of iebt.
8.—6,
14
Domicile of the Debt. £ London .. .. .. ~ .. 146,580,502 Australia .. .. .. .. .. 4,276,750 New Zealand. . .. .. .. .. 116,526,091 £267,383,343 While the Government will not hesitate to borrow the necessary capital for purposes considered to be essential for the economic development of the country, I consider that, having regard to the definite tendency for a world-wide decline in price-levels, coupled with the probability that the weight of the debt charges will be further increased through having to renew maturing loans at higher interestrates, we have now reached a stage when great care must be exercised, in determining what additional works should be undertaken with borrowed capital. Loanmoney used for State advances and other purposes that are earning full interest obviously imposes no burden on the taxpayers as such. On other items of capital expenditure, where there is only a partial recovery of interest, and in some cases no direct recovery whatever, the expenditure may be really productive, in that the wealth and earning-capacity of the community may be increased as a result of such capital expenditure by more than sufficient to offset the relative burden on taxation for loan charges. Still, such indirect returns are very difficult to measure, and in order that the relative burden on the taxpayer may not be unduly increased to the detriment of the Dominion generally new works of this class should henceforth be undertaken very sparingly and only after very careful consideration of the likely financial results. In other words, further capital expenditure must be restricted as far as is feasible to directly productive purposes. This will give greater point to the somewhat involved question of what should be provided out of capital and what out of revenue. Even in the commercial world this question is on occasions the subject of diverse opinions, but in State finance, where the public interest —and not profits—is the broad aim, the problem is much more difficult of solution. One aspect of the matter is that some things which may quite legitimately be provided for out of loan capital up to a certain stage of development should later be borne as a charge against revenue. In this connection it would appear that we have about reached the stage when a start should be made in the direction of providing out of revenue for the cost of financially unproductive works. Of course, additional burdens cannot be placed upon the Consolidated Fund in a year like the present one, but, as finances permit, I consider that a move should be made in the direction indicated. In short, so far as borrowing is concerned, the Government will endeavour to arrange its programme of development in such a way that the debt charges on the loans raised for the various purposes will be absorbed without causing any financial embarrassment. At the same time every effort will be made to ensure that 20s. of value materializes for every £l expended. Departmental balance-sheets on commercial lines, showing the detailed costs of the various State activities, have for several years past been presented to this House and published. One of the objects in introducing the balance-sheet system was to obtain a general State balance-sheet which would show accurately and in concise form all the assets held against the public debt and generally the position of the national finances from a commercial viewpoint. A preliminary balance-sheet on these lines has been compiled as at 31st March, 1929, and is included with the remainder of the departmental balance-sheets as at that date, published in Parliamentary Paper 8.-l, Part IV. STATE ADVANCES OFFICE. The substantial benefits accruing from the activities of the State Advances Department have been made increasingly manifest to borrowers during the past year. Applicants to the number of 6,754 received loans amounting to £6,923,807.
Domicile of debt.
Reduction in further capital expenditure.
Departmental balance-sheets.
State advances.
8.—6,
15
This sum is almost double the amount advanced during the previous financial year (viz., £3,481,607), and since the inception of the Department in 1894 constitutes a record. The amount paid over during the year was distributed as follows Number. Amount. £ Loans granted to settlers .. .. 2,191 2,187,955 Loans granted to settlers under Rural Advances Branch.. .. .. 779 1,406,860 Loans granted to workers .. .. 3,776 3,323,412 Loans granted to local authorities .. 8 5,580 Total .. .. .. 6,754 £6,923,807 From the 10th December, 1928 (when the Government assumed office), until the 31st March, 1930, the sum of £5,563,885, which includes £1,565,950 obtained by the issue of bonds on the assets of the Rural Advances Branch, was added to the capital of the Department. With this additional capital the Department has been able to meet all the demands made upon it. During this period loans totalling £4,219,895 were granted to 3,495 settlers, £3,851,452 to 4,413 workers, and £5,580 to eight local authorities, making a grand total of £8,076,927 granted to 7,916 applicants ; a record of financial assistance given on the easiest terms possible, which has undoubtedly done much, both directly and indirectly, to promote the welfare of the people of the Dominion. Great assistance has been rendered to many more farmers by enabling them to place the capital liability of their farms on long-term mortgages with more favourable rates of interest, and by providing money for improving and developing their holdings. In furtherance of the Government's policy of closer land-settlement, many small settlers have also been assisted to take up land. With regard to homes for workers, attention may now be drawn to the fact that, owing to the large amount of money made available for the purpose by the Government since it came into office, the difficulty which previously existed amongst workers of finding homes for themselves and their families has disappeared. In addition, the money provided has furnished work for a very large number of persons, including builders, carpenters, painters, plumbers, and other tradesmen, who may otherwise have been out of employment. After making provision for loan charges and income-tax, the net profit for the year under the Settlers Branch was £32,742, equal to 3s. per cent, on the capital employed ; under the Rural Advances Branch, £5,669, equal to 3s. 3d. per cent, on the capital; under the Workers Branch, £9,588, equal to Is. 4d. per cent, on the capital; and under the Local Authorities Branch, £648, equal to 6d. per cent, on the capital. Although the profits for the year are satisfactory, in that they demonstrate, on the one hand, that the State Advances portion of the public debt imposes no burden whatever upon the taxpayer as such, it will be seen that the margins of profit in the several branches of the Office are small relative to the amount of capital employed, and demonstrate, on the other hand, that the capital is being lent as cheaply as possible and that at present there is no margin for a reduction in the rate of interest to borrowers. All profits made are transferred to the State Advances Office Sinking Fund, which really constitutes the Reserve Fund of the Office ; for in the ordinary course no sinking fund is required, because the capital is not permanently sunk, but is being repaid all the time by the settlers and workers. The Reserve Fund for these branches of the Office now amounts to £1,738,684, but this amount is not over large in relation to a capital liability of £41,470,242. In a business of this kind the desirability of having a substantial Reserve Fund in the interests of financial stability will be appreciated by all, especially when the comparatively narrow margin of security on which loans are granted is remembered, and the probability that as loans mature on the London market higher rates of interest will have to be paid on renewals. Even so, the record of the Office to date is a monument to the political courage and financial wisdom of the late Right Hon. Sir Joseph Ward, who was responsible for the institution of the State Advances Office in 1894.
Rural advances bonds.
Assistance to farmers.
Advances to workers.
Profits o! the Office
8.—6,
16
RURAL INTERMEDIATE CREDIT. Before leaving the subject of financial assistance to settlers, I would like to refer briefly to the operations of the Rural Intermediate Credit Board, which was established for the purpose of providing funds for farmers at reasonable rates of interest, ancl on convenient terms regarding repayment of the principal. In addition to granting loans direct to farmers on the security of their stock, chattels, or on the guarantee of dairy companies or other institutions, there has been a marked development recently in the alternative system of obtaining loans by the formation of rural intermediate credit associations composed of farmers who join together for the purpose of obtaining finance from the Board. During the past year twelve additional associations were formed, bringing the total number now in operation throughout the Dominion to thirty-three, whilst several other associations are in course of formation. By the passing of the Rural Intermediate Credit Amendment Act of last session, the maximum loan which may be granted to any one farmer was raised from £1,000 to £2,000, and this extension has greatly assisted in developing the system, particularly in sheep-farming and grain-growing districts, where the increased facilities have been fully availed of. At the 30th June, 1929, the Board's total advances outstanding amounted to £165,480, and it is gratifying to record that up to the present, repayments have come to hand in a very satisfactory manner. Generally, it can be stated with confidence that the rural intermediate credit scheme is proving a decided success, and contains great possibilities of further benefit to the primary industries of the Dominion. LAND-SETTLEMENT. As practically the whole of the Dominion's income is derived from the export of her primary produce, the importance of successful land-settlement cannot be overestimated. The Government fully realizes the significance of this, and since taking office has left no stone unturned to assist in obtaining greater returns from the land. Increased production with decreased costs —this is undoubtedly the way out of the present economic depression and a condition precedent to a permanent solution of the unemployment problem. First of all, the Government realizes that all idle Crown lands suitable for farming should be made productive as soon as possible, and to this end large areas of land have been offered for selection. During the seventeen months ended the 30th April last no less than 545,100 acres of all classes of rural and suburban Crown lands were selected under various tenures, the number of subdivisions being 2,549. It is anticipated that some 161 additional farming sections will be offered for selection by the 31st July. Full advantage is being taken by the Government of the amendment passed last session to the Land Act, regarding the development of unoccupied Crown land, and, as an example of the vigorous progress made in this connection, I would direct the attention of honourable members to two blocks comprising an area of 3,000 acres which will soon be thrown open for selection. The first is an area of 2,000 acres, of good pumice land, known as the Ngakura Block, about fifteen miles from Rotorua, where the preliminary work in connection with breaking in the land is now almost completed. The other block comprises an area of 1,000 acres, at Te Kauwhata,, which formerly consisted of a wattle plantation. Good progress has been made with the stumping, and a large portion of the area has been ploughed preparatory to cutting up into selections of suitable area. The Government's progressive policy in this connection has also embraced Native lands, ancl at the present time intensive work is being carried on under fourteen separate development schemes, while preliminary operations are being undertaken on eleven other schemes which it is proposed to prosecute immediately, the total area involved being 54,000 acres, principally in the North Island. All labour employed on these schemes is provided by the Maoris, who will eventually be selected as the settlers to whom the land will be allotted when developed and subdivided into suitable holdings.
Rural intermediate credit.
Increased loans.
Land-settlement.
Utilization of idle Crown lands.
Development of Native lands.
B.—6
17
Secondly, while pushing ahead with the breaking-in of idle Crown lands, the policy is being pursued of purchasing private estates that can be acquired at prices which will allow of profitable farming operations after subdivision has been effected. A particularly close watch is being kept on the economic aspect of the matter in order to prevent anything in the nature of a land boom. The number of properties purchased for ordinary land-for-settlement purposes since the United Government came into office is thirty, comprising an area of 55,592 acres, involving a total purchase-price of £525,000, and providing a total of 149 subdivisions. Seventeen of these settlements have already been offered for selection, and the subdivision of the remainder is being rapidly proceeded with. In addition to these areas, eleven properties were purchased on behalf of forty-six applicants under the group-settlement scheme authorized in terms of the Land Laws Amendment Act, 1928 (Part II). The total area so purchased was 8,415 acres, and the total purchase-price .£131,000. These lands are being subdivided into holdings of suitable areas. In addition, of course, large estates are from time to time being cut up by private owners. Thus it will be seen that the Government has a very creditable record in the encouragement of both intensive and extensive cultivation of the land, and at the same time, by placing additional settlers on the land, the unemployment problem is relieved to a considerable extent. In this connection it should not be overlooked that every additional family placed on the land means increased business for the towns and a larger market for our secondary industries, which, of course, are practically confined to internal trade. AGRICULTURE. As I have already indicated to honourable members when dealing with landsettlement, the Government is fully seised with the necessity of obtaining increased returns from the land by improved farming methods combined with decreased costs, elimination of waste, improved quality, and widened markets. Especially is this necessary at the present time to compensate for the reduced national income consequent upon the lower prices obtained in the world's markets for our primary produce. To this end the Government has made available for the man on the land the whole of the resources of the Departments of Agriculture and Scientific and Industrial Research, and as a practical farmer I have no hesitation in saying that the services of these Departments have been readily availed of, and have proved of very material benefit to the farming community generally. Excellent work has been accomplished of late in promoting improved practices in grassland farming, and largely to these improved practices must be attributed the increased sheep-carrying capacity of the land and the rise of butterfat yield to an average of over 220 lb. per cow for the whole of the Dominion. Another far-reaching recent development is the system of certification of seeds of the major field crops, such as pasture grasses, wheat, and potatoes, thus ensuring propagation of the best strains. On the scientific side, investigations have been undertaken into such problems as the destruction of noxious weeds, the health and nutrition of animals; wheat, seed and plant research, and kindred subjects. Special attention has been paid to the dairy industry, which, at the present time, is responsible for a large proportion of our national income, the necessity for this being emphasized by the fact that at no time previously have the Dominion's dairy exports encountered such serious competition in the world's markets. Also the possibilities of placing the pig industry on a more remunerative basis, the problems connected with the cold storage of meat, butter, cheese, and fruit, and the difficulties at present experienced with regard to the flax industry, are all matters which are being investigated by the Government's direction. Increased production and improved quality of our primary products are the main objectives of the Government's activities in this connection, and the results which have been achieved, I consider, fully justify the expenditure incurred.
Purchase of private estates.
Agriculture.
Dairy industry.
Pig industry, &c
4—B. 6.
8.—6
18
SECONDARY INDUSTRIES. Complementary to land-settlement, there is the development of our secondary industries. Owing to our geographical position and distance from the world's markets we cannot expect in the meantime to develop an export trade in manufactured goods, but honourable members will agree that the requirements of the local market are sufficient to justify a more extensive development of our secondary industries than obtains at present. Moreover, this country could support and keep employed a much larger population if greater support were given to the local industries. The Government has given serious consideration to the problem and has already assisted to a considerable extent. In this connection I might mention on the technical side the investigations conducted by the Department of Scientific and Industrial Research into the leather industry, the low temperature carbonization of coal, and the profitable utilization of slack coal in the form of briquettes, &c. On the financial side, in addition to the considerable assistance given by the imposition of Customs duties on imported goods, the Government is giving a bounty for the successful production of iron and steel within the Dominion, and also offering a bonus in connection with the utilization of by-products of coal. The Government has also borne the expense of several inquiries into local industries, as, for instance, the Timber Industry Committee, which inquired into the possibility of greater utilization of New Zealand timbers for building and other purposes, and the Footwear Committee, which dealt exhaustively with the problems facing that industry. EDUCATION. As indicated in last year's Budget, the Government is of opinion that the educational system of the Dominion should be developed on more practical lines than have obtained in the past. I mentioned in the earlier part of this statement that practically 99 per cent, of our exports, and consequently the greater part of our national income, is derived from the sale of primary products, so that it is evident that adequate provision should be made in our educational system for tuition in subjects relating to such industries. The Select Committee on Education which was set up la.st session has now completed its investigations into the education system of the Dominion, and its report has now been received. Included in the matters which have been inqiured into is that of co-ordination in administration. In some districts, for instance, there are three separate controlling bodies (Education, High School, and Technical School Boards), each with separate staffs and offices. It should be possible to avoid this overlapping without impairing the efficiency of the administration. Another problem is that of reorganization of schools, whereby the break between primary and secondary education will occur earlier than at present. As regards these and other matters of an. important nature, however, action is being withheld until the Committee's report has been considered by the Government. Further progress was made during the year in the consolidation of country schools, and in districts where local opinion has been favourable, the extra expenditure inconsiderable, and the conditions suitable, the small schools have been closed down and the children conveyed daily to large central schools, where the pupils have the advantage of instruction by more qualified teachers and in better equipped schools. Conveyance of the children by motor-vehicles to the central schools is, where possible, arranged by contract, but in some cases Government buses are provided. The correspondence school continues to minister to the needs of children in isolated localities. It is pleasing to note that a high standard is maintained, and the pupils of this school can compete successfully with those from the ordinary schools. During the year a secondary department was commenced, and three courses have been provided —a general course with an agricultural trend, a course leading to the Public Service Entrance, and another to Matriculation. The educational needs of backward children are not neglected, and the establishment of special classes for such children has been continued. Tuition along very practical lines is being given, and it is gratifying to note the satisfactory results obtained.
Secondary industries.
State assistance.
Education.
Select Committee.
Consolidation of country schools.
Correspondence school.
Backward children.
B.—6
19
UNEMPLOYMENT RELIEF. The Government is much concerned that many of our people are still suffering the mental and physical hardships resulting from unemployment. The cure lies in far-reaching measures which will enable the additional labour to be employed with, profit in private enterprise. So far as New Zealand is concerned, landsettlement must be the chief field of operations, but to get new settlers satisfactorily settled on the land is a matter that, given the best will in the world —and the Government has that —is going to take some time. In the meantime the Government, with the assistance of the local authorities, is doing its utmost to provide as much relief work as possible. The problem of unemployment is not by any means peculiar to New Zealand, but has affected all parts of the civilized world to a more or less extent, and basically seems to be due to the economic upheaval caused by the recent war, followed by a falling world price-level. The latest available statistics show that the proportion of unemployed to the total population is 1 in 38 for Great Britain and Northern Ireland, 1 in 102 for the Commonwealth of Australia, whereas in New Zealand the proportion is 1 in 476. While this Dominion is therefore considerably better off than the majority of other countries, the Government has not relaxed its efforts to place the matter on a satisfactory basis. In so far as New Zealand is concerned, the position of our overseas trade is undoubtedly accentuating the problem of unemployment. Reduced returns for our primary exports result in diminished spending-power within the Dominion, and consequently reduced demand for labour. While the Government is unable to control the world price-level, every endeavour is being made to balance the deficiency in income by encouraging further production. Additional Crown land has been brought under cultivation, numerous areas have been purchased and cut up for closer settlement, and scientific investigations are being undertaken on behalf of farming interests. Recognizing, however, that relief measures are necessary in the meantime, the Government issued instructions that as much employment as possible is to be provided by the Departments of State. In addition, the unemployment relief works undertaken by local authorities are subsidized by the State. For the most part, men on Government relief works have been employed on road and mainhighways construction, afforestation, railway-construction, land-improvement, and irrigation works. These are all useful and necessary developmental works, and, where possible, the men are employed on the co-operative principle and paid by results, to ensure as far as possible that the taxpayers receive value for the expenditure incurred and the workers a reasonable reward for their labour. The expenditure by the Government on unemployment relief last financial year amounted to £1,415,592, an increase of £612.882 over that of the previous year, as follows 1929-30. 1928-29. Public Works Department (including £ £ main highways) .. .. 914,000 680,393 State Forest Service .. .. 185,400 50,250 Lands Department .. .. 19,725 3,500 Railway Department .. .. 184,739 1,303,864 734,143 Subsidies to local authorities .. 111,728 68,567 £1,415,592 £802,710 At the 31st March last there were 16,197 men employed on public works, as compared with 13,694 on the 31st March, 1929, and the highest weekly number during last year was 16,354, as against 14,544 during the previous year. In order to co-ordinate the various relief schemes throughout the Dominion, the Government recently reappointed the Cabinet Unemployment Committee (consisting of the Ministries of Lands, Public Works, and Labour). It is the duty of the Committee to expedite the prosecution of the relief works that have been approved, and, as far as finance will permit, to put in hand additional schemes as they are required.
Unemployment relief.
Employment provided on public works.
Expenditure
Cabinet Unemployment Committee.
8.—6,
20
The special Committee, on which the employers and labour were represented, set up by the Reform Government to investigate the problem of unemployment, was asked to continue its investigations, and has now submitted its final report, which has received the careful attention of the Government. Legislation is now before the House giving effect to the main recommendations in the Committee's D O report. Concerning the subsidy to be paid to the Unemployment Fund out of the Consolidated Fund, under the provisions of the Bill, I have to say that as the proposed scheme will be in operation only for the last three months of the financial year and that period is the best time of the year from the point of view of employment, it is considered that very little, if anything, will be required from the Consolidated Fund this year over and above the cost of the present relief measures. Accordingly, no special provision has been made in this Budget for payments into the Unemployment Fund. Next year, of course, this additional burden on the Consolidated Fund will have to be taken into account in preparing the Budget. Finally, in order to encourage local bodies to provide relief works adjacent to the workers' homes, and thus obviate as far as possible the necessity for sending married men with large families to unemployment relief works in the country, the Government recently decided to increase the subsidy per £l on labour-costs from £l to £2 in respect of works undertaken in urban and suburban districts, and financed from ioans or ordinary revenue. The increased subsidy has already been considerably availed of, and, although it will result in increased expenditure of State funds, it will do much to relieve the position during the ensuing winter months. REPARATIONS. A further contribution to the peace of the world was recently made when, at the Hague Conference held in January last, satisfactory agreements were reached in the matter of reparations, representing, it is confidently hoped, a complete and final settlement, in so far as Germany is concerned, of the financial questions resulting from the war. The Treaty of Peace concluded at Versailles in 1919 did not deal conclusively with the matter of reparations in its financial aspect, apart from placing on Germany the moral responsibility for all damage sustained by the Allied countries. The Reparations Commission set up in terms of the Treaty assessed the total amount payable by Germany at approximately £6,600,000,000 (equal to 58 per cent, of the claims), and apportioned that amount amongst the Allied countries according to the losses sustained by each. Great Britain's share (which includes the dominions) was fixed at 22 per cent, of the total. Various Committees of Inquiry (Balfour, Dawes, &c.) have been set up from time to time to consider problems arising out of the reparations, such as the amount and period of the annuities, methods of payments in kind, &c., and the last such committee, known as the " Young Committee," submitted recommendations which resulted in the Hague Conference, at which a number of agreements were approved and signed by representatives of the nations concerned. These agreements provide not only for the definite settlement of the reparation liabilities of the German Government and for the constitution of the Bank for International Settlements, but also for the settlement of the reparation liabilities of Austria, Hungary, and Bulgaria. These agreements taken together represent a general liquidation of the financial questions raised by the war and the subsequent Treaties of Peace and will, it is hoped, ensure the definite return of Europe to normal financial and economic conditions. Briefly, in so far as New Zealand is concerned, the position is now as follows :■ — (a) Germany is required to discharge her reparations debt by thirty-six annuities, commencing at £85,000,000 and increasing each year to £121,500,000, an average over the period of £99,500,000. Of this average annuity approximately one-tliird is unconditional, and the balance is conditional upon the state of trade in Germany, and under certain conditions may be postponed. (b) The British Empire's share of the average annuity of £99,500,000 is approximately £20,450,000, of which the amount payable to New Zealand is £351,300. The present value of this amount compounded for thirty-six years at 5 per cent, per annum is approximately
Unemployment Bill.
Increased subsidy to local bodies.
Reparations.
New Zealand's position.
21
8.—6
£5,812,900, and this, together with the payments already received (£1,750,000), is the cash return that New Zealand may expect towards reimbursing her for the losses incurred as the result of the war. In addition to the cash return there is, of course, the value of the reparation estates in Samoa, which are now the property of the Dominion. (c) To the capital of the newly constituted Bank for International Settlements the Government recently agreed to contribute the sum of £22,566 out of reparation-moneys received from Germany. The capital is required to enable the Bank to conduct exchange operations and to provide part of the administration expenses. (d) A separate agreement has also been concluded between Germany and New Zealand whereby all German property in New Zealand remaining unliquidated at the date of the agreement will be returned to the German nationals concerned. The value of the property to be returned, subject to certain claims, is approximately £21,000, and this amount is at present held by the Public Trustee as Custodian of Enemy Property. The New Zealand Reparation Estates in Samoa are deemed to have been finally disposed of, and in terms of the agreement are to be retained by the New Zealand Government. (e) With a view to capitalizing a portion of the German reparation annuities, a total loan of approximately £60,000,000 was recently raised abroad, London contributing £12,000,000. An opportunity was given to place portion of the loan on the New Zealand market, but the Government deemed it advisable to decline the offer. New Zealand's share in the proceeds amounts to approximately £74,000. GOVERNMENT TRADING DEPARTMENTS. With the exception of the railways, which I will deal with shortly, all the Government trading departments closed the year with profits. The Post and Telegraph Department, after allowing for depreciation and other reserves, earned a net profit of approximately £10,000. As an indication of the volume of business transacted, I might mention that the total cash receipts amounted to £3,641,619, and the payments to £3,111,199, including the sum of £481,000 paid to the credit of the Consolidated Fund as interest on capital. A further sum of £500,000 was carried to the reserve for the renewal and replacement of telegraph and telephone equipment. Owing to the comparatively short life of this class of asset, a substantial sum requires to be set aside each year in order to apportion the cost of such replacements and renewals equitably over the workinglife of the equipment. The Department, however, is not reducing profits by reserving more than is actually required, and even on the present basis the rate of depreciation charged is substantially less than that allowed by telephone companies overseas. The savings-bank business conducted by the Department continues to be popular with the general public of the Dominion. The deposits for the year amounted to £28,561,854, and the withdrawals to £29,575,994. The withdrawals exceeded the deposits by £1,014,140, compared with £859,559 for the previous year. The interest credited to depositors amounted to £1,806,414, as against £1,745,050 for the previous year, so that notwithstanding the heavy withdrawals the accumulated funds show an increase of £792,274, the balance at credit of depositors on 31st March last amounting to £49,436,491. The Post Office Investment Certificates sold by the Department are becoming increasingly popular for the investment of the savings of people with small means, and the sales for the year under this heading amounted to £639,000. The rapid progress of the Public Trust Office was more than maintained during the year. The value of estates and funds under administration on the 31st March was £53,049,437 —a further record for the Office —new business amounting to £8,473,916 having been accepted throughout the year. The net profits for the year totalled £13,256, and in considering this amount account must be taken of the substantial reductions made during the year in
Trading departments. Post and Telegraph Department.
Post Office Savings-bank.
Post Office Investment Certificates.
Public Trust Office.
Profits.
8.—6,
22
respect of administration charges and Office fees generally. In accordance with the amending legislation passed last session, half the net profits of the Office are now paid to the Consolidated Fund. The investments during the year totalled £4,216,590, consisting chiefly of loans to local authorities for public-utility works, to farmers for the acquisition and development of their holdings, to business men for the erection of buildings, and to city and town dwellers for the acquisition or building of homes. The Government Life Insurance Department's operations resulted in a net cash surplus of £222,540, of which the sum of £214,188 was allocated for division amongst policyholders in the form of reversionary bonuses. The new business for the year amounted to £1,918,600—the highest in the history of the Department —while the cost of management was reduced, the percentage of expenses to total income falling from 9*35 per cent, in 1928 to B*B per cent, in 1929. The operations of the State Fire Insurance Office for the year also constituted a record, both the total income and the total profit being larger than for any year previously, being £261,104 and £78,276 respectively. The Accident Branch of the State Fire Insurance Office also experienced a record year, a total profit of £18,066 being shown in the annual accounts. All the foregoing offices pay both land and income tax, and legislation will be introduced this session providing for the charging in addition of license fees and stamp duty on cheques. Thus, in future, all these trading departments will be subject to similar taxation as obtains in the case of trading companies. The State coal-mines earned a net profit of £15,856 for the year, in spite of the difficult trading conditions which obtained, and the total profits earned since inception now amount to £179,174. Full details of the operations of the Government trading departments will be given in the annual reports of the Departments concerned, but I have dealt with the matter here for the purpose of correcting the popular impression that Government trading activities result in a loss. EARTHQUAKE DISASTER As a result of the serious earthquake that occurred on the 17th June, 1929, considerable expenditure has been incurred in restoration work in the districts affected. The Government took immediate steps to restore roads, bridges, railways, public buildings, &c-., the first objective being the making of tracks as temporary means of access to settlers cut off as a result of the calamity. Arrangements were later made for the reopening of main roads and for the restoration of public buildings. This has necessarily involved the Government in considerable additional expense, and up to date the expenditure out of revenue has been £155,252, and from the Public Works Fund out of capital £24,878. This does not represent the total cost to the Crown, as expenditure is still being incurred, particularly in connection with the reconstruction of roads, &c. In regard to the administration of the Earthquake Relief Fund, which was comprised of subscriptions received from the public for relief of distress in the affected areas, a central committee was established for the purpose of co-ordinating the activities of local relief committees, and excellent work has been done by the various committees concerned. The resources of the Government were utilized for the purpose of providing reports for the local committees in connection with applications for assistance from the relief funds. The Central Earthquake Committee, on the recommendations of the local committees, has authorized grants totalling £81,118 for the restoration of damage and as compensation for loss, but the payment of these grants is not yet completed. The committees have adopted the wise precaution of withholding payment of grants until the work for which assistance has been provided has been substantially completed by settlers, which explains why the fund has not yet been closed. Assistance has also been provided out of relief funds in the way of sustenance allowances for those settlers who have been deprived of the use of their holdings through lack of access, and in some instances this assistance is still being given, while local committees have also provided assistance for refugees from the affected districts. It still remains for the Central Committee to make permanent provision for widows and dependants of persons killed as a result of the earthquake.
Investments.
Government Life Insurance Department.
State Fire and Accident Insurance Office.
State coal-mines.
1929 earthquake.
Earthquake Relief Fund.
Central Committee.
23
B.—6
It is indeed gratifying to record the magnificent public response for tlie relief of distress, the total subscriptions being in excess of £147,000. The distribution of this sum in the devastated area has helped in a very real measure in the work of restoration. STATE SUPERANNUATION FUNDS. The unsatisfactory financial position of the several State superannuation funds — i.e., Public Service, Teachers,' and Railways, was drawn attention to in last year's Budget, and, as I have already indicated, the Government directed that additional subsidies amounting to a total of £175,000 were to be paid to the credit of the Public Service and Teachers' Funds during last financial year. This has had the effect of improving the position to some extent, but there is still a large amount required to place the funds on a sound actuarial basis. In accordance with the Government's promise, a Committee has been set up, consisting of the Public Service Commissioner, the Financial Adviser to the Government, and a representative of each of the superannuation funds. The Committee has been directed to investigate the whole position and report to the Government on the state of the funds, and generally what action is considered necessary to place the matter of superannuation for the public services on a sound and satisfactory basis. The Government is accordingly withholding further action until the Committee's report is received. RAILWAYS. As has already been announced, the Budget difficulties for the current financial ] year have been greatly increased by the fact that the Railways have now reached J a position when, on the present basis of operations, they can no longer meet the interest payable on the capital invested therein. As the total of the contribution to Railway capital from revenue, amounting to £8,100,000, has already been written off the capital is now represented almost entirely by loan-money. The interest on the whole of the public debt, including that on the £51,000,000 invested in Railways, is paid out of the Consolidated Fund. The approximate amount of the interest on the Railway portion of the debt has, in the last few years, been recovered from the separate Working Railways Account, notwithstanding the heavy losses which have been incurred by the Railways. The position will, I think, be more clearly understood if I briefly review the financial history of the Railways during the past five years. Prior to 1925-26 the Railway accounts formed part of the Consolidated Fund, and the excess of revenue over working-expenses, though not specifically appropriated for that purpose was, as part of the common pool, available to meet, as far as it would, the interest payments on the relative portion of the public debt. In this way any shortage in the earnings of the Railways was automatically made good each year out of taxation. As a standard the Railways were expected to earn 3f per cent, on the capital, although the actual interest cost was higher than that. Under these arrangements no reserves were set aside to provide for renewals and depreciation of assets, but losses were met as they accrued, although the amount of the losses was not disclosed by the accounts. Arising out of the report of the Fay-Raven Commission of 1924, the Govern- f ment of the day. with the avowed object of placing the Railways on a commercial c basis, passed legislation separating the Railway finances from those of the Consolidated Fund. Reserves were to be built up for renewals and depreciation, and interest at the average cost per cent, of the capital was to be paid each year to the Consolidated Fund, which, however, was to pay back to the Railways the amount of losses on branch lines and isolated sections. An amount of £1,327,649, representing surplus earnings from former years, after deducting the policy rate of interest, was handed back to the Railways as working capital and a general reserve. Such were the arrangements made. Interest-rates were fixed at 4| per cent, in respect of the bulk of the capital ir derived from the Public Works Fund, and at the average of the actual rates on ca the special loans raised under the Railways Improvement Authorization Act, 1914,
Public subscriptions.
Superannuation funds.
New Zealand Government Railways.
Pay-Raven Commission.
interest on Railway apital.
8.-6,
24
which rates averaged £5 3s. 9d. per cent, in 1925, but the average has since declined to £4 15s. 4d. per cent. As the average rate on the public-works loans has been increased by the recent big conversion operations in London, the rate of interest on the capital drawn from the Public Works Fund was increased to 4 J per cent., as from the Ist April, 1929. If the subsidies on the branch lines and isolated sections, which increased from approximately £360,000 for 1925-26 to just on £500,000 for 1928-29, are deducted from the interest receipts from the Railways for those years, the effective interest charges worked out at less than the former policy rate of 3f per cent. After taking credit for the subsidies the Railways showed approximate results as follows : 1925-26, £79,000 profit; 1926-27, £100,000 loss ; 1927-28, £291,000 loss ; 1928-29, £433,000 loss. Consequent on legislation passed last session, the subsidy on branch lines and isolated sections was discontinued as from the Ist April, 1929, although a payment of approximately £30,000 was made during the year on account of subsidies due and outstanding on account of the previous financial year. The loss to the Railway accounts, however, was offset to the extent of £344,250 by reducing the capital on which interest is payable by £8,100,000. Even so, the loss for 1929-30 amounted to £1,211,269. The gross revenue of the Department amounted to £8,288,116, as compared with £8,249,038 for the previous year, and working-expenses to £7,358,859, as compared with £6,849,383 for the previous year. The revenue from passenger traffic showed a comparative decrease of approximately £130,000, due to the fact that the revenue for last year received little or no benefit from any Easter traffic, whereas the previous financial year received the revenue from the holiday traffic for two Easters. As indicated above, however, the decrease in passenger revenue was more than offset by increases under other heads. The comparative increase in expenditure, amounting to £509,476, was due to the necessity of overtaking the arrears of maintenance of rolling-stock which had accumulated during the reorganization and reconstruction of the locomotive workshops, a considerable increase in the quantity of coal used owing to the difficulty in obtaining supplies of the requisite standard of quality from Australia, a large increase in the train-mileage run, and additional work undertaken to assist in relieving unemployment. The net revenue for the year was thus £929,257, as compared with £1,399,655 for the previous year. Interest charges amounted to £2,132,324, leaving a deficiency on the year's operations of £1,203,067, to which must be added an adjustment of £8,202 on account of the previous year, making the total deficiency £1,211,269. The net accumulated loss in the Railway Accounts for the five years amounted to approximately £1,956,000, but up to the end of last year the losses have been met out of the working capital and reserves created. Apart from a cash advance of £150,000 from the Consolidated Fund to enable the Railways to complete the payment for last financial year, the interest due to the Consolidated Fund has been paid each year out of the cash resources of the Railways, and the losses incurred, apart from those on branch lines and isolated sections, did not fall upon the taxpayers. As the liquid portion of the reserves is now exhausted, the Railways, from sheer lack of cash resources, must fall short in their interest payments by the amount of net loss for the ensuing year, estimated on the basis of last year's operations at about £1,300,000. The interest on the relative portion of the public debt will, of course, be paid in the usual way, so that the extent of the Railway shortage will this year mean just so much more to be found out of taxation. The Government have already adopted strong measures to minimize this additional burden on the taxpayers, which could hardly have fallen upon them at a more awkward time, coinciding as it has with a heavy fall in Customs and other revenue. The Department has been required drastically to overhaul their estimates of expenditure, which, compared with last year's expenditure, have been reduced by £360,000. This means the curtailment or elimination of unremunerative services, and, while the cutting-down of train-services is regretted, it must be recognized that such action is essential if savings are to be made. The possibilities of increasing the revenue have also received attention, and the steps being taken will, it is estimated, lead to an increase of about £90,000, making a total immediate improvement of
Subsidy on branch lines, &c'., discontinued.
Revenue and expenditure.
Comparative increase in expenditure.
Loss lor year.
Accumulated losses.
25
B.—6
position calculated to reduce the estimated shortage for the year by £450,000. In addition, as previously announced, the Government has set up a Royal Commission, which is now engaged in reviewing all the activities of the Department in order that they may advise the Government where further economies can be effected. The order of reference, which is a wide one, includes the question of obsolescence of branch lines, and also the possibility of improving the position through co-ordination of rail and road traffic. TRANSPORT. The heavy loss on the Railways which has now to be met is only part of the loss being incurred through the wasteful duplication of transport services and the general lack of co-ordination in this important economic field. Under modern conditions transport is one of the most important factors in the economic welfare of the community, and the wasteful duplication of harbours, railways, and roads, with the relative duplication of services, can only mean that through higher rates and taxes, and increased prices for commodities and fares, working-costs of the farmers, the manufacturers, and the distributors, and generally the price of goods and the cost of travelling to all sections of the community, are much greater than they need be. As was pointed out in the last Budget, the basic cause of the serious financial position of the Railways is undoubtedly motor competition, and the irony of the situation is that this undermining of the earning-power of the public railways has been facilitated by the expenditure of large amounts of public money in building good motor-roads alongside the railways. Transport matters have now reached such a position that, in the interests of the whole community, it is essential that far-reaching measures be adopted to bring about some measure of co-ordination in transport. The matter cannot be left to be settled by competition—firstly, because of the huge waste involved, which the Dominion cannot afford, and, secondly, because the competition is not on an equitable basis, in that, while the Railways are expected to pay all costs, the road services are being indirectly heavily subsidized by the ratepayers and the taxpayers. In fact, the whole matter is of such importance that it is imperative to our national prosperity that the means shall be found of rationalizing transport. The Transport Department set up last year has been collecting and collating all the information and data available, both in this country and abroad. The conclusions emerging from these investigations will be submitted to honourable members in the form of legislation during this session. As already stated, the Royal Commission which has been set up to go into the question of effecting economies in the Railways will consider the problem of co-ordinating road and rail services. It must be admitted that this problem, has a very definite bearing on the Railway question. HIGHWAYS. There is no doubt that the wasteful duplication of transport services has been facilitated by the fact that the roading system has in the past been dealt with as a matter quite apart from Railways. The fact that the highways system has been planned and good motor-roads built with public money, regardless of the effect on the Railways, has undoubtedly been a considerable factor in bringing about the serious financial position of the Railways that has now to be faced. Although rapid progress has been made in road transport in recent years, it will, I think, be generally recognized that the Railways must remain as the backbone of the transport system. This being so, road transport, apart from back-country, suburban, and short-distance traffic, should be complementary to rail transport, if the Dominion is to avoid heavy losses and derive the maximum of benefit from both forms of transport. It logically follows that the highways system should as far as practicable be designed to facilitate such co-ordination, especially when both rail and road construction are being carried out with public money, and most of it
Transport.
Motor competition with Railways.
Transport Department.
Highways.
s—B. 6.
8.—6
26
borrowed money at that. It is quite clear that the present position cannot be allowed to continue, but the Government propose to defer action until the report of the Railway Commission, which will probably have a bearing on the matter, is received. In the past the Highways Account, in addition to the proceeds of the petroltax, tire-tax, and other earmarked revenues, has also received from the Consolidated Fund an annual grant of £35,000, and from the Public Works Fund £200,000, of capital per annum free of interest. It may here be added that about £25,000 of the total petrol-tax and license fees is paid by Government Departments. To assist in meeting the present large shortage in the Consolidated Fund it is proposed to make the following adjustments in connection with the finances of the Highways Account: — (a) Discontinue the annual grant of £35,000 from the Consolidated Fund. (b) Recover from the Highways Revenue Fund interest on the capital transfers from the Public Works Fund to the Main Highways Construction Fund. Transfers to date amount to £1,226,000, and interest at 5 per cent, on this amount will be recouped to the Consolidated Fund during this and future financial years. I may add that the loans from which the transfers were drawn cost on the average about £5 3s. 4d. per cent. No further transfers to the Highways Account will be made, and in future the whole of the loan capital required for main-highways construction will be raised for that purpose. (c) Transfer to the Highways Revenue Fund as from the Ist April last the charge for subsidies to local authorities on rates. These subsidies are at present paid out of the Consolidated Fund under the provisions of the Appropriation Act, 1916, and the Municipal Corporations Act, 1920. Subsidies paid last year amounted to approximately £220,000. These subsidies, which were first introduced nearly half a century ago, were intended to assist backward counties and boroughs to improve the roads of the country. The original intention was to pay the subsidies for a period limited to twenty-five years, but they have now become part and parcel of the normal finance of the local authorities. However, as the subsidies are given for roading purposes, and as the incidence for road construction and maintenance has been wholly altered by the advent of motor traction, it is quite appropriate that these subsidies should be a charge against the taxes earmarked for roading purposes. These financial adjustments will assist the Consolidated Fund to the extent of £316,000 for this financial year. Incidentally, meeting that additional amount of the roading-costs out of the petrol-tax will also assist in the direction of putting road competition with the railways on a more equitable basis. Although the aggregate of the annual expenditure on roading is now approximately £3,600,000, it is considered that up to the present insufficient attention has been given to backblock roads, where more expenditure would greatly assist landsettlement, and be of much benefit to the settlers in outlying districts, who, be it said to their credit, are carrying on under great difficulties. Expenditure on such roads would help the production of the country to a far greater extent than much of the present expenditure. Accordingly, the Government proposes to arrange for a substantial amount out of the proceeds of the petrol-tax to be expended on subsidiary highways through outlying districts each year. This expenditure will assist rather than undermine the Railway revenue. To provide the necessary funds to enable the Highways Account to meet all these liabilities without disturbing the present financial arrangements of the Highways Board, a resolution has been passed increasing the petrol-tax from 4d. to 7d. a gallon. For the remainder of the financial year the additional 3d. a gallon will, it is estimated, bring in £450,000. Of this amount, £316,000 will be required for the liabilities taken over from the Consolidated Fund, leaving £134,000 for additional expenditure on subsidiary highways through outlying districts. In a full year about £350,000 should be available for the latter purpose.
Main Highways Account.
Adjustments of finances.
Total expenditure on roads.
Increased petrol-tax.
27
B.—6,
1930-31. As I have indicated in my opening remarks, the Dominion is once again called upon to face a substantial drop in export prices, which inevitably means a contraction in the national income. Still, we have had to meet similar fluctuations in prices previously, and there is certainly no occasion for alarm. Partly on account of the falling-off in the trade position, but mostly due to the reaction from Australian conditions, the exchange rates are at present very much against the importers. While there is some consolation in the fact that the exporters are benefiting from the position, and thus obtaining some set-off for the low prices they have received, the combination of the two factors—a contraction in the national income and an exchange rate of at least £5 per cent. —must result in a considerable falling-off in imports, and this, of course, means a corresponding decline in Customs revenue. This, our largest item of revenue, is always difficult to gauge in advance, and at a time like the present, when there are so many uncertain factors to be considered, it presents a very complex problem indeed. Having regard to the experience of the past, and making allowances for the economic probabilities of the near future, it is estimated that the Customs revenue for this year, apart from any changes made in the tariff, will be £1,150,000 less than was received last financial year. The Customs revenue for the first three months of the financial year amounted to £2,006,243, as compared with £1,917,667 for the same period of last year ; but an examination of the receipts for this year clearly indicates that the total has been considerably inflated by excessive clearances from bond due to fear of tariff increases. This is clearly shown by the fact that while the Customs revenue is higher, imports have declined. Further, unless a marked change not yet discernible occurs in the economic outlook, it is very probable that the falling-off in Customs revenue will be more marked during the balance of the financial year, for most of the goods now coming to hand were probably ordered before the present restrictive measures became effective. Imports last year showed a comparative increase of £4,000,000 over those of the previous year. This year a comparative decrease of at least £5,000,000 is likely. Furthermore, the falling-off will assuredly be greatest in the luxury items, on which the duties are highest. The fall in export prices and the difficult times that have resulted therefrom will also affect the yield from land and income tax, although not to anything like the same extent. So far as income-tax is concerned, the full effect will probably not be felt in the revenue until next financial year. Land-tax, under the present legislation, would be affected by the provision for remissions in the case of hardship, while land-tax outstanding usually increases in times like the present. For the current financial year it is estimated that land and income tax, apart from any changes in the law, will be adversely affected to the extent of about £300,000. A loss of £1,300,000 in the Railway accounts, coupled with the exhaustion of the liquid reserves, would mean that only about £900,000 could have been paid to the Consolidated Fund on account of interest, a decrease of £1,230,000 compared with the amount received last year. In addition, it is expected that the revenue item, " Interest on public moneys," would in the ordinary course have shown this year a comparative decrease of about £60,000, due to there being less money available for investment and to the low rates of interest offering on the London market for short-term investments. Then the item for miscellaneous revenue was last year increased by £60,000, derived from the sale of New Zealand's interests in the Pacific Cable, a certain accumulation of unclaimed moneys from the Public Trust Office received consequent upon legislation passed last session, and other amounts of a non-recurring nature. Consequently a comparative reduction of about £90,000 was likely this year. On the expenditure side, under permanent appropriations there will be unavoidable increases in debt charges, amounting, it is estimated, to £315,000, comprising £225,000 additional interest arising out of the increases in the public debt and approximately £90,000 for debt-repayment charges. As I have already explained, the latter item will increase steadily each year, but such increases are offset by savings in interest on debt redeemed.
1930-31.
Customs revenue.
Decrease in imports.
Decrease in revenue.
Increase in expenditure.
8.—6,
28
A further rigid item is found in where automatic increases are to be expected. The estimated increase for this year compared with last year's expenditure amounts to £62,000, which increase is chiefly under the headings of old-age and war pensions. In addition, increases are normally to be expected in hospital subsidies and various other items based on fixed rates. In reviewing the prospective budgetary position no allowance was made for any increase in departmental votes which normally increase a little each year as a result of expanding services. For instance, the Education vote has increased by an average of £90,000 per annum during the last five years. Smaller increases and some decreases, probably largely offsetting one another, were to be expected under other items ; but, to sum up the position the Government was called upon to deal with, the anticipated principal variations from last year's revenue and expenditure, if operations had been carried out; in the ordinary way on the same basis, are as follows : —- Decreases in revenue — £ £ Customs .. .. .. 1,150,000 Interest on railway capital .. 1,230,000 Land and income tax .. .. 300,000 Items other than taxation .. 150,000 —- 2,830,000 Increases in expenditure— Debt charges .. .. .. 315,000 Pensions and other fixed items .. 100, 000 — 415,000 3,245,000 Less amount of last year's surplus .. 150,000 Prospective Budget shortage for 1930-31 £3,095,000 I may mention that the amount of last year's surplus has been deducted not because it can be brought into this year's Budget, but because comparisons have been made with the revenue and expenditure for last year which resulted in a surplus of approximately £150,000. An estimated Budget shortage of over £3,000,000, quite apart from any increase under departmental votes -that is what the Government, this House, and the country generally have to face. Still, given the co-operation and support of honourable members and the people, the Government is satisfied that the position can be met and the Budget balanced, as, of course, it must be, without imposing undue hardship on any section of the community, for there is no doubt that the general financial position of the Dominion as a whole is quite sound. ALTERATION IN BUDGETARY (PROCEDURE. This year a departure was made from the usual procedure in dealing with the estimates, and, after a careful examination of the various votes, only such amount as was considered would be just sufficient to enable them to carry out their proper normal functions efficiently, while exercising continuous rigid economy in detail, was allocated to each Department. In this connection I may say that it is proposed to make this system of allocating amounts to the several votes a permanent feature of the budgetary system. The reductions made mean, of course, that having regard to the degree of hardship likely to result to outside organizations concerned, various subsidies and other less essential and extraneous items have had to be eliminated or considerably reduced. The change has been made with a view to the adoption of the more businesslike principle of cutting the national coat according to the cloth available.
Summary.
Total shortage.
Aiteration in budgetary procedure.
29
8.—6.
REDUCTIONS IN EXPENDITURE. The position being as I have stated, reductions in expenditure are the only alternative to heavy increases in taxation. Needless to say, the Government is anxious to avoid increasing taxation as much as possible, and, on becoming apprised of the position, immediately proceeded to review carefully the expenditure. Steps were taken to obtain the greatest possible economy in administration, but, as this is a matter that has already received considerable attention, there is no possibility of making very large savings in that way. Accordingly, the Government made a careful review of the services being supplied by the State—and by " services " 1 mean monetary assistance granted as well as work done by the Departments of State. It is proposed to curtail or even suspend services where such action is possible without upsetting the basic organization of the Departments or causing undue hardships to the institutions or sections of the community who are directly or indirectly benefiting by particular items of expenditure. In other words, we have to determine what is essential and what is not, and for this financial year, at any rate, eliminate or at least severely curtail the non-essentials. The taxpayers will agree, without doubt, that this is the right course to pursue ; but opinions, especially among interested parties, differ as to what is essential, leaving the Government with a rather invidious task. However, in the interests of the country, reductions must be made, and 1 would now repeat my appeal to the people to view the matter from a national standpoint and support the Government in carrying out an unpleasant duty. The net expenditure last year amounted, in round figures, to £25,200,000 ; but, as I explained when dealing with the transactions for the year, the total includes £10,697,000 for debt, charges and £2,750,000 for pensions and family allowances, in which items, as I have just stated, increases are to be expected. Then there was £1,509,000 for the transfer of the petrol-tax and other revenues earmarked for Highways, in connection with which I have already announced the Government's proposals to relieve the Consolidated Fund of the charges of £220,000 for subsidies on rates to local authorities, £35,000 annual grant to Highways Revenue Fund, and £61,000 of interest on loan capital for Highways. Apart from these adjustments, however, the amount of the Highways revenue paid out is the amount received, so the balance of the Consolidated Fund is not affected by this item. The four items I have mentioned —debt charges, pensions, highways moneys, and subsidies to local authorities —account for £.15,176,000 of the £17,228,000 of expenditure under the permanent appropriations. Of the remaining £2,052,000, approximately £690,000 went in subsidies to Hospital Boards on rates, £600,000 being on account of maintenance and £90,000 on capital levies. So far as maintenance is concerned, curtailment of the subsidy, except in so far as it arises from the exercise of economy by the Hospital Boards, is not possible without upsetting the whole basis of hospital finance, and it is not proposed to do that. With capital expenditure, however, there is more elasticity, and for this year capital expenditure by the Boards will have to be restricted to urgent essential works. In this way it is estimated that a reduction of £30,000 will result in the subsidies payable out of the Consolidated Fund. Subsidies on voluntary contributions and bequests to hospitals and various educational institutions amounted last year to approximately £80,000. Generally speaking, bequests, together with the subsidy normally payable thereon, are in the nature of " windfalls," usually additional to the normal finance of the organization concerned ; and the same remarks apply to some of the voluntary contributions that are received. Obviously, little hardship will be entailed in restricting the payment of subsidy to cases where voluntary contributions and bequests are applied to essential works. Subsidies on voluntary contributions for useful and necessary work in connection with the primary schools will be paid as heretofore, but, in general, each request for a subsidy will have to be considered on the merits of the case. It is hoped in this way to save £40,000 this year without inflicting any great hardship on anybody. Then there are the subsidies to State superannuation funds and the National Provident Fund, which last year amounted to £382,000, including £43,000 maternity allowances paid through the National Provident Fund and the friendly societies. As already stated, the superannuation funds are in a very unsatisfactory financial
Reductions in expenditure.
Subsidies to Hospital Boards.
Subsidies on voluntary contributions and bequests.
Subsidies to superannuation and other funds.
8.—6
30
state, but, pending the report of the Committee which is investigating the position, only the subsidies usually paid are being budgeted for at present. This means a saving of £175,000, though probably only a temporary one, in comparison with the expenditure last year. The Civil List and salaries and honoraria, mostly Legislative and Judicial, payable under statute, accounted for a further £138,000 of the expenditure under permanent appropriations ; while grants to University colleges, scholarships, and other education purposes absorbed £101,000 ; compensation for condemned stock, £30,000 ; Singapore Naval Base, under agreement with the British Government, £125,000 ; maintenance of war graves, £31,000 ; and exchanges and management charges of New Zealand stock in London, £72,000. Reductions cannot be made in these items, i may add, however, that the Singapore Naval Base will be a subject for discussion at the forthcoming Imperial Economic Conference. The remaining expenditure under permanent appropriations last year, amounting to £403,000, included £180,000 on account of railway losses, which this year will be wliolly reflected in decreased interest receipts. An amount of £50,000, transfer to Discharged Soldiers Depreciation Fund, need not be repeated this year, although the amount of the fund is not yet large enough to offset the discharged-soldier-settlement- losses written off against loan capital. The balance of the expenditure consists of payments under numerous Acts of Parliament, full details of which are set out in the estimates placed before honourable members. The expenditure under annual appropriations, which comprise the departmental costs, numerous small grants and subsidies, and various miscellaneous items, amounted last year to £7,973,000, nearly half the amount —or £3,219,000 —being spent on education. In the case of Defence, the amount allowed, £275,000, will mean a general suspension of the compulsory military training and some reduction in the staff personnel. The dispensing with the services of members of the staff is much regretted, especially in view of the unemployment difficulties, but if there is to be a suspension of operations the work will not be there for them to do. The estimates under annual appropriations prepared on the basis that 1 have indicated total £7,585,000, being a decrease of £388,000 as compared with last year's expenditure. In addition, as previously mentioned, a reduction in the Railway estimates, aided by certain increases in revenue, will aid to the extent of £450,000. In addition to these savings in expenditure, it is proposed to augment the revenue to the extent of £90,000 by bringing in the following amounts : — (a) £60,000 from the Land Assurance Fund. This fund was established to meet possible claims for compensation arising out of the bringing of land titles under the Land Transfer Act, and out of the working of the Act generally. The expenses of carrying into effect the provisions of the Land Transfer (Compulsory Registration of Titles) Act, 1924, have been paid out of the fund, which is also charged with any liability under the Mortgagees' Indemnity (Workers' Charges) Act. 1927. About half the work in connection with the compulsory registration of titles has now been completed. Claims for compensation have been very small, while experience has shown that the liability on account of mortgagees' indemnity is practically negligible. Under these circumstances it is proposed to close the fund and transfer the £85,000 at present standing to its credit to the Consolidated Fund. Of the amount £60,000 will go to revenue and the remaining £25,000 will be held in suspense to meet any claims that may be made. The legislation necessary to carry out this proposal will transfer the liabilities of the fund to the Consolidated Fund, which has always been liable to make good any deficiency in the Land Assurance Fund. (b) £30,000 balance of interest on reparation-moneys at present held in a special reserve by the Public Trustee. During the war the Public Trustee was entrusted with the duty of liquidating ex-enemy property held in New Zealand, the proceeds from which., after the Treaty of Versailles, became reparation-moneys. Interest to the amount of £50,000 earned on such balances since the Treaty has previously been
Annual appropriations.
Reduction in Defence vote.
Land Assurance Fund.
Interest on reparation-moneys.
31
B.— 6
receiver], but owing to technical legal difficulties, legislation will be necessary before interest accruing prior to the Treaty can be made available. All interest on ex-enemy moneys, however, should be applied in relief of taxation, which is carrying the burden of the war pensions and war debt, &c. I may add that the capital moneys, with the exception of about £60,000 held by the Public Trustee against contingent liabilities, have already been applied in repayment of war debt. The necessary legislation embodying these two proposals will be submitted in due course. To sum up, it is proposed that the Budget shortage of £3,095,000 shall be partly met by reductions in expenditure, and adjustments as follows : — Subsidies to local authorities on rates transferred to £ Highways Account . . . . ~ .. 220,000 i nterest on loan capital transferred to Highways Account 61 ,000 Additional superannuation subsidies not being budgeted for .. .. .. .. 175,000 Decrease in hospital subsidies .. .. .. 30,000 Decrease in subsidies on voluntary contributions . . 40,000 Subsidies to R-ailways (non-recurring) .. .. ] 80,000 Elimination of transfer to Discharged Soldiers Settlement Account Depreciation Fund . . .. 50,000 Reduction in annual votes .. .. .. 388,000 Railways—reduction in expenditure and increase in •revenue .. .. .. .. 450,000 Transfer from Land Assurance Fund . . . . 60,000 Balance of interest on reparation-moneys . . . . 30, 000 Total estimated savings on last year's expenditure .. .. ..£1,684,000 Allowing, say, £250,000 for supplementary estimates and contingencies, there remains approximately £1,660,000 to be provided out of additional taxation. TAXATION. Needless to say, the Government regret very much having to bring forward proposals for fresh taxation, especially at a time like this, when business generally is not as prosperous as it might be. The small surplus for last year was only attained by close control over the expenditure, and there was very little margin to come and go on. Thus, when we find ourselves faced this year with a shrinkage of £2,830,000 in revenue and added liabilities on rigid items of over £400,000, there is no possibility of bridging the gap without some additional taxation. Having carefully combed out the expenditure, the most the Government can do is to endeavour to place the additional burdens as equitably as possible and in such a way as to cause as little economic disturbance as possible, in order that a return to more prosperous times may not be hindered any more than can be helped. The Customs tariff resolutions already passed will, it is estimated, produce about half the £l ,660,000 additional revenue required . As I explained when dealing with the resolutions, while obtaining the necessary revenue the opportunity is being taken to make some desirable amendments in the tariff from the protective and preference points of view. The primage duty, which previously was imposed on practically all goods whether otherwise dutiable or not, has been abolished, and a surtax on dutiable goods substituted therefor; and it may be noted that on most goods of British origin this surtax will produce about the same amount of revenue as the presentprimage duty. On foreign goods, however, it will bring in a greater amount of revenue.
Summary.
Taxation.
Customs increases.
B.—6,
32
The bulk of the additional revenue which is to be obtained from Customs will come from the increase in the duty on many lines of foreign goods which, at the same time, will increase the margin of preference on British goods. In addition, definite increases set out in the schedules to the resolutions have been made on other goods. In regard to cigarettes, the duty has been increased by Id. per packet of 10 cigarettes, which is equal to about 3s. 3d. per pound. An equivalent increase has been made on cigarette tobacco and also on the excise duties payable on these articles. The revenue derived from tobacco has in recent years suffered greatly through the unreasonably large concession granted to local manufacturers of tobacco. To protect the revenue the duty on imported raw leaf tobacco has been reduced by Is. per pound, and the excise duty on tobacco manufactured in New Zealand has been increased by the same amount. On this basis, if a manufacturer who now uses half local and half imported leaf were to use only New Zealand leaf, he will pay about the same duty as he does now. On the other hand, if he continues to use half local and half imported leaf the total duty payable will be increased from 2s. Bd. to 3s. 2d. per pound. Thus the change should result in the greater use of New Zealand tobacco. With regard to spirituous liquors, the allowance previously made for underproof spirits has been abolished and the duty on New Zealand brewed beer has been increased by -|d. per gallon. In order to afford greater assistance to the timber industry, the rates of duty on rough-sawn and sawn-dressed timber have been increased by approximately 2s. 6d. per 100 superficial feet. In addition, the duty on certain fresh fruits has been increased by Id. per pound, while the duty on barley used as a food for stock has been abolished. Finally, I may say that it is hoped that the extra duties which have been placed on certain foreign goods may, as a result of negotiations and subsequent reductions, be the means of obtaining better treatment for our products in other countries. In connection with the amount of additional revenue which it was deemed advisable to obtain from indirect taxation, I may say that in preference to other things it was considered that additional duty should be placed upon cinematograph sound-films. As the value of films varies a great deal, to be equitable any increased taxation should be upon an ad valorem and not a footage basis. The difficulty here, however, is that the value of a film is not known when it comes over the wharf. In this connection it may be explained that films are not sold, but are rented to the theatre proprietors, usually for a percentage of the gross theatre takings. Further, films are not dealt with singly, but in groups or " blocks." Under these circumstances an ad valorem Customs duty in the ordinary way is hardly practicable, but it is proposed to impose the equivalent of an ad valorem duty in the shape of a film-hire tax. Briefly, the proposal is that the film-distributing firms will be required to make returns monthly to the Commissioner of Taxes of the gross rentals received from sound-films and the administration expenses incurred in New Zealand, commencing as from the Ist July last. After deducting these expenses, and also the percentage of gross rentals upon which income-tax is levied, the residue will represent the value of the films, on which will be levied an ad valorem tax at the rate of 10 per cent, in the case of British films and 25 per cent, in the case of foreign films. It is proposed to obtain part of the additional revenue required from land and income tax, but at the same time the opportunity is being taken to remove certain anomalies and place the taxes on a more equitable basis. The information obtained from last year's income-tax returns of farming incomes showed clearly that previously many large incomes had been escaping their fair share of taxation and that the amendments made last session were in the right direction. Experience has shown, however, that the special land-tax was too rigid in its incidence and was inequitable in some instances. At the same time, information received by the Tax Department shows that the incomes derived from many farms of an unimproved value of considerably less than £14,000 (and thus not at present assessable for income-tax) are not contributing a fair share towards the expenses of the State. Accordingly, to overcome all these difficulties and inequities
Duty on tobacco.
Duty on spirituous iiquors.
Duty on timber.
Duty on cinematograph sound-films.
Land and income tax adjustments.
33
8.—6.
it is proposed to abandon the special land-tax and make all farmers owning or occupying land of an unimproved value of £7,500 or over liable to assessment for income-tax on their farming as well as other income. The provision in last year's legislation whereby the land-tax payable was deductible from the income-tax on farming incomes will also be repealed, and farmers will henceforth be assessed for income-tax on the same basis as other classes of the community. Further, it is found that the present general provision allowing a deduction for income-tax purposes of 5 per cent, on the capital value of property used in production of the income has given rise to serious anomalies and inequities. This allowance is intended as a set-off for land-tax paid, and also to provide for depreciation of buildings, but the method is too rough and ready to be equitable. For instance, a taxpayer deriving income from rents is at present allowed as a deduction the interest on his mortgage and also 5 per cent, on the full capital value, in which his equity may be relatively small. In many such cases the taxpayers practically escape income - tax, and by reason of the mortgage exemption may also escape land-tax. Again, in the cities, owing to the erection in recent years of large and valuable buildings, the 5-per-cent. allowance has in some cases relieved the business man not only of the amount of his land-tax, but, in addition, of a considerable part of his income-tax. Further, the taxpayer carrying on his business in a steel-frame structure with a life possibly exceeding one hundred years is allowed the same rate of 5 per cent, as the taxpayer using a wooden building with a possible life, of, say, forty years. Even in the latter case 5 per cent, on the capital value is an excessive allowance. Further depreciation is an actual expense and should be allowed as a deduction before arriving at the assessable income. At present it is a special exemption. Accordingly, it is proposed to revert practically to the position obtaining prior to 1923, and reduce the allowance to 5 per cent, on the unimproved value or the taxable balance in cases where a mortgage exemption has been allowed in the landtax assessment, together with an appropriate allowance for depreciation of buildings, varying with the different classes of building, at the discretion of the Commissioner of Taxes. The proposal really amounts to dividing the present allowance into its two parts —an allowance of 5 per cent, on the unimproved value as a set-off against land-tax paid, and depreciation on buildings at appropriate rates as a deduction from profits. The change will apply to all assessable income derived from the use of land, whether in the course of farming or trading. That 5 per cent, on the unimproved value is generally sufficient to cover landtax paid will be seen from the following examples taken from returns rendered to the Tax Department: —
It is also proposed to make some changes in regard to the taxation of lifeinsurance companies, the taxation on which has been considerably reduced in recent years. In 1921 it was provided that the income should be assessed at half the ordinary rate, and the companies have been able to increase greatly the bonuses paid. It is found, however, that the Government Life Insurance Department, the assessable income of which is determined by its actual profits, is paying 32 per cent, of the total income-tax paid by life-insurance companies, while its
Taxation of lifeinsurance companies.
6 —B. 6.
Reduction in TT . i * 11 Income-tax by ™ unimproved Assessable 11 • e t a *. -a Value. | Tncome. allowing 5 per Land-tax paid. Cent, on Unimproved Value. £ £ £ £ Commercial 6,200 4,220 75 24 Farming .. .. .. 10,150 2,925 98 97 Commercial .. .. .. 18,425 33,656 207 136 Farming .. .. .. 24,287 4,121 283 237 Commercial .. .. .. 35,812 35,119 402 448 Farming 38,927 5,875 499 446
B.- 6
34
income represents less than 22 per cent, of the total income of life-insurance companies. This is a result of tlie peculiar method of arriving at the assessable income of foreign life-insurance companies. Such companies are assessed on income derived from investments in New Zealand and investments out of New Zealand held by or on behalf of the New Zealand branch. It is not necessary for companies to make investments on behalf of any particular branch, consequently they may to a large extent determine their own taxation. It is proposed, therefore, to provide that in the case of foreign life-insurance companies the taxable income from lifeinsurance business shall equal 25 per cent, of the premium income and consideration received for annuities. This is approximately the rate shown on an actuarial basis by the Government Life Insurance Department. It is estimated that the yield from land and income tax after these adjustments have been made would, be practically the same as under the existing legislation, the only difference being that the burden would be more equitably distributed. In order to obtain part of the additional revenue required to balance the Budget, it is proposed to withdraw the land-tax concessions granted in 1924, whereby a deduction of 5 per cent, has been allowed on the amount of land-tax otherwise payable. In addition, it is proposed to increase the income-tax rates by 10 per cent. Under the Stamp Duties Act it is proposed to make the following alterations : — (a) Increase the banknote duty from the present rate of 15s. to 225. 6d. per cent, on the average amount of notes circulating during each quarter. This increase, which will operate as from the Ist July, means an increase from 3 per cent, to 4\ per cent, in the banknote duty. ('b) Increase the totalizator duty from 2J per cent, to 5 per cent., the State to receive the whole of the increase. At present the State receives 2 J per cent, and the racing clubs 7\ per cent, of the amount deducted by'racing clubs from investments on the totalizator. The proposal is to double the revenue received by the State without interfering with that received by the clubs. (c) Require insurance companies to pay the usual 2d. duty on receipts. At present they enjoy an exemption from this tax. (d) Increase by 10 per cent, the stamp duty on all instruments presented for stamping. Instruments which the parties thereto are permitted or required to affix adhesive stamps or write on stamped paper will not, however, be affected. (e) Companies annual license duty : minimum to be £l and maximum to be increased from £200 to £300. (/) The exemption from conveyance duty of transfers of land from the Crown to be limited to lands within the meaning of the Land Act, 1924, or Land for Settlement Act, 1925, or Education Reserves Act, 1928. This amendment would still leave free of duty transfers of land from the Crown for land-settlement and suchlike purposes, but will require purchasers of land from Government trading departments to pay the usual duties thereon. (g) Impose duty at the same rate as is payable on the transfer of shares in New Zealand companies upon transfers of shares in foreign companies, including foreign mining companies, executed in New Zealand. At present such transfers escape duty in New Zealand. (h) Increase the flat rate of duty on registration of mortgages and discharges thereof from 2s. 6d. to ss. (i) Amend the definition of " public authority " so as to exclude the Public Trust Office from benefits in favour of the Crown, and otherwise narrow the definition of the Crown for purposes of stamp duty. (j) Require the Government Life Insurance and State Fire Insurance Departments to pay an annual license fee and receipt and cheque duties at the usual rates. This proposal means placing these Departments on the same footing in regard to taxation as other insurance companies.
Land and income tax yield.
Increase in income-tax. Increase in stamp duties.
35
8.—6
These proposed amendments to the Stamp Duties Act, apart from the increases in the totalizator duty and the banknote duty, are individually relatively small from a revenue point of view, but in the aggregate they will be of some assistance in meeting the Budget shortage. Under the heading of " Death Duties," it is proposed to impose an additional 10 per cent, estate duty on the amount by which the final balance of an estate exceeds £100,000. This additional duty will bring in a considerable amount of revenue without imposing hardship on anybody. The exemption from gift duty is to be reduced from £1,000 to £500 per person per year, and a duty of 2\ per cent, imposed on dutiable gifts of from £500 to £1,000 in value. The annual license fee for a sliarebroker's license is to be increased from £2 to £5. To further assist in providing the additional revenue necessary to balance the Budget, it is proposed to reimpose the amusement-tax on payments of Is. or more for admission to any entertainments. This was the position prior to 1924, when the exemption was raised to the present amount, 2s. On Is. admission-price the tax will be Id., from Is. to Is. fid. a tax of 2d., and on higher charges Id. for every shilling or part of a shilling, plus an additional penny as at present. Allowing for these increases in taxation, and also for the increase in the petroltax for the benefit of the Main Highways Account, it is estimated that the revenue for the year will be as follows £ Customs .. .. .. .. .. 8,530,000 Beer duty .. .. .. .. .. 615,000 Film-hire tax .. .. .. . . . . 30,000 Motor-vehicles —Duties, licenses, &c. .. .. 1,915,000 Stamp and death duties .. .. 3,780,000 Land-tax .. .. .. .. .. 1,240,000 Income-tax .. .. .. .. .. 3,960,000 Interest on public moneys .. .. .. 805,000 Interest on capital liabilityRailways .. .. .. .. .. 1,380,000 Post Office .. .. .. .. 510,000 Interest on Public Debt Redemption Fund . . 985,000 Other receipts .. .. .. .. 1,370,000 £25,120,000 ESTIMATED RESULTS. The estimated expenditure for the year is fully set out in the estimates submitted to honourable members. To sum up, the position for the financial year is estimated to be— £ Revenue .. .. .. .. .. 25,120,000 Expenditure — Permanent appropriations .. 17,289,000 Annual votes .. .. 7,585,000 24,874,000 leaving .. .. .. £246,000 to provide for supplementary estimates and contingencies.
Estimated revenue.
Estimated results. I
8.—6,
36
That completes my statement of the finances for the current year, and I have to thank honourable members for a patient hearing. The Government's proposals for meeting the serious financial position with which we are faced may appear to be a formidable list of items, but it is considered that the additional burdens will be more evenly distributed and the retarding effect upon economic recovery minimized by spreading the increase over a number of items under both direct and indirect taxation. In order that this Dominion should maintain its credit on the world's moneymarket, the Government would be failing in its duty to the country if it did not bring down proposals to balance the Budget. The principal cause of most of our present troubles —falling prices in the world's markets —lies beyond our control. We have surmounted similar difficulties in the past, and it is with confidence that I appeal to members of this House and to all sections of the community resolutely to accord the Government solid support and co-operation in the necessary solution of the problem. This Dominion's natural resources, its favoured climate, and the energy of its people are such that, given the exercise of reasonable care, it should not be long before our present difficulties are behind us and the Dominion is again able to enjoy more prosperous times.
Conclusion,
37
8.—6
SUMMARY. Consolidated Fund— Ordinary Revenue Account— £ Revenue .. .. .. .. .. ..25,349,861 Expenditure .. .. .. .. .. ..25,200,882 Surplus .. .. .. .. .. £148,979 £ Balance brought forward, Ist April, 1929 .. .. 2,453,541 . (id— £ Surplus, 1929-30 .. .. .. .. 148,979 Advance to Native Trustee repaid (net) .. 33,000 181,979 2,635,520 Less— Advances to Rural Intermediate Credit Board.. 162,000 Subsidies to local authorities for unemployment relief .. . . . . . . .. 111,728 Assistance towards restoration of public works damaged by earthquake .. .. 3,516 Charges and expenses of raising loans .. 1,939 279,183 Balance, 31st March, 1930 .. .. .. £2,356,337 This balance was made up as follows : — £ Cash .. .. .. .. .. .. 1,510,239 Imprests outstanding .. .. .. .. 132,132 Investments .. .. .. .. .. 713,966 £2,356,337 Revenue apart from items earmarked for highways showed compara- £ tive increase over previous year of . . . . .. .. 1,482,972 Customs increase, including £310,000 from additional primage .. 942,794 Special land-tax produced . . . . . . .. .. 240,000 Remissions granted by " Hardship " Commission .. .. .. 118,000 Excess of income-tax over land-tax on farming incomes .. .. 47,500 Expenditure increases— Interest and debt repayment .. .. .. .. 586,501 Pensions and family allowances .. .. .. .. 92,364 Subsidies to Hospital Boards and local authorities .. .. 62,390 Petrol-tax and other earmarked revenues for highways . . .. 274,394 Subsidies to superannuation funds and National Provident Fund .. .. .. .. .. 176,832 Departmental votes .. .. .. .. .. 40,946
8.—6,
38
London Loan, 1930. £5,500,000 raised in May, 1930, for — £ Public Works—General purposes .. .. .. 4,500,000 Development of hydro-electric-power works . . .. 500,000 Construction of and additions to railways and rolling-stock 500,000 £5,500,000 Loan very favourably commented upon by leading financial papers. Loan obtained on better terms than other borrowing States. Summary of Debt Operations. £ Debt as at Ist April, 1929 .. .. .. .. .. 264,191,983 Add new loans raised — £ Ordinary .. . .. .. 3,576,145 State advances .. .. .. 2,144,075 5,720,220 269,912,203 Less redemptions—Ordinary .. .. .. .. .. 766,350 War .. .. .. .. .. 1,097,744 Discharged soldiers .. .. .. .. 425,770 State advances .. .. .. .. 238,996 2,528,860 Debt as at 31st March, 1930 .. £267,383,343 Classification of the Debt. £ Ordinary .. .. .. .. .. .. 154,297,847 War .. .. .. .. .. .. 69,783,525 Discharged soldiers .. .. .. .. .. 7,861,886 State advances .. .. .. .. .. 35,440,085 £267,383,343 Domicile of the Debt. £ London .. .. .. .. .. .. 146,580,502 Australia .. .. .. .. .. .. 4,276,750 New Zealand .. .. .. .. .. .. 116,526,091 £267,383,343 War debt during year reduced by £1,097,744, the total reduction over the past eight years amounting to £12,462,148, or approximately 15 per cent. Government's borrowing policy is to restrict further loan expenditure as far as possible to directly productive works, but will not hesitate to borrow the necessary capital for purposes considered to be essential for the economic development of the country. Conversion Operations. £29,490,852 4-per-cent. consolidated stock which fell due on Ist November, 1929, was disposed of as follows £ Converted into other stock .. .. .. 21,759,496 Redeemed out of the proceeds of special London issues for purchases on the market .. .. 575,949 Redeemed out of the proceeds of New Zealand issues in redemption .. .. .. .. 5,968,786 Redeemed out of public-debt-repayment moneys and sinking fund .. .. .. .. 1,186,621 £29,490,852
39
8.—6
Capital Expenditure on Public Works. £ Railway construction, additions, and improvements 3,315,612 Main highways and roads .. .. .. 2,288,217 Hydro-electric supply .. .. .. .. 581,975 Telegraphs and telephones .. .. . . 657,291 Public buildings (including schools) .. .. 817,970 Irrigation, land and river improvements . . . . 283,872 Other public works .. .. .. .. 136,881 Total .. .. .. .. £8,081,818 Preliminary State Balance-sheet prepared as at 31st March, 1929. State Advances Office. The substantial benefits accruing from the activities of the State Advances Office increasingly availed of. During the year, applicants to the number of 6,754 received loans amounting to £6,923,807, as follows :— , T Amount. JN umber. Loans granted to settlers .. .. 2,191 2,187,955 Loans granted to settlers under Rural Advances Branch .. .. .. 779 1,406,860 Loans granted to workers .. .. 3,776 3,323,412 Loans granted to local authorities . . 8 5,580 6,754 £6,923,807 From 10th December, 1928 (when the United Government assumed office), to 31st March, 1930, loans totalling £4,219,895 were granted to 3,495 settlers, £3,851,452 to 4,413 workers, and £5,580 to eight local authorities, making a grand total of £8,076,927 granted to 7,916 applicants. Rural Intermediate Credit. Scheme proving a decided success and contains great possibilities of further benefit to the primary industries of the Dominion. At 30th June, 1929, total advances amounted to £165,480. Repayments coming to hand in a very satisfactory manner. Land-settlement. Importance of successful land-settlement fully realized by the Government. All idle Crown lands suitable for farming are being made productive as soon as possible. During seventeen months ended 30th April last 545,100facres of all classes of rural and suburban Crown lands were selected under various tenures, the number of subdivisions being 2,549. Anticipated that some 161 additional farming sections will be offered for selection by 31st July. Development of Native lands also vigorously pursued. Intensive work at present being carried on under fourteen separate development schemes, while preliminary operations being undertaken on eleven other schemes, involving a total area of 54,000 acres. Thirty properties purchased for land-for-settlement purposes since United Government came into office, comprising an area of 55,592 acres, involving total purchase-price of £525,000 and providing a total of 149 subdivisions. Agriculture. Increased production especially necessary at present time to compensate for reduced national income consequent upon lower prices obtained for Dominion's primary produce. Whole of resources of Departments of Agriculture and Scientific and Industrial Research made available for man on the land. Special research activities undertaken in connection with destruction of noxious weeds, health and nutrition of animals, &c.
8.—6
40
Secondary Industries. Development of secondary industries complementary to successful land-settle-ment. Requirements of local market sufficient to justify more extensive secondary industries. Government assisting (in addition to Customs duty on imported goods) by technical investigations by Department of Industries and Commerce. Education. Requires to be developed on more practical lines. Select Committee's report on education at present being considered by Government. Country schools being consolidated. Correspondence School now provides a secondary course. Special tuition for backward children. Total cost of education now exceeds £4,500,000 per annum. Unemployment Relief. Additional employment provided on Government works. Total expenditure by State for last year was £1,415,592. At 31st March, 1930, 16,197 men employed on Government works. Subsidy payable to local authorities on labour costs of relief works undertaken in urban and suburban districts increased from £l for £l to £2 for £l. Legislation now before House giving effect to main recommendations of Unemployment Committee's report. Reparations. Matter of German reparation payments now placed on satisfactory basis. Government Trading Departments. With exception of railways, all trading Departments earned profits for the year. Earthquake Relief. Total subscriptions received in excess of £147,000. Government arranged for reopening of main roads and restoration of public buildings. Railways. Gross revenue for year, £8,288,1] 6, and working-expenses, £7,358,859. Total net loss for year, £1,211,269, due basically to competition of motor transport. Advance of £150,000 made from Consolidated Fund to enable expenditure to be met. Subsidy on branch lines and isolated sections discontinued as from Ist April, 1929. Expenditure being drastically overhauled and unremunerative services curtailed or eliminated. Royal Commission set up to review whole position of Railways. Transport. Co-ordination essential and regulative provisions necessary. Matter cannot be left to be settled by unrestricted competition, which Dominion cannot afford. Legislation to be introduced this session.
year.
41
8.—6
Highways. Total expenditure on roads and highways now approximately £3,600,000 per annum. Wasteful duplication of transport system has been facilitated by development of highways and roads. Finances of Main Highways Account being adjusted. Petrol-tax to be increased from 4d. to 7d. per gallon to provide necessary additional funds. Taxation. Budget for ensuing year cannot wholly be balanced by economy in administration, and additional taxation unavoidable. Large falling-off in Customs and land and income tax anticipated owing to trade conditions. Total shortage of over £3,000,000 required to be met. Shortage to be made good by decreases in expenditure amounting to £1,684,000 and the balance from additional taxation. Proposals. Customs duties increased to provide approximately half of £1,660,000 required, mainly in respect of goods of foreign origin. Duty on tobacco increased. Allowance previously made for underproof spirit abolished. Duty on New Zealand brewed beer increased. Duty on imported timber increased. Additional duty on cinematograph sound-films. Land and Income Tax.—Special land-tax abandoned and all farmers owning or occupying land of an unimproved value of £7,500 or over liable to assessment for income-tax on farming as well as other income. Also, adjustments on account of allowances. Rebate of 5 per cent, on land-tax otherwise payable will not be allowed this year. Deduction of 5 per cent, on capital value of property for income-tax purposes to be amended to 5 per cent, on unimproved value or taxable balance, with appropriate allowance for depreciation. Income-tax raised by 10 per cent. Taxation of life-insurance companies to be adjusted. Stamp Duties. —Totalizator duty increased from 2| per cent, to 5 per cent. Death duties increased by 10 per cent, on amount by which final balance exceeds £100,000. Amusement-tax increased ; also sundry other increases in stamp duties. Estimates for 1930-31. Estimates rigorously reduced to minimum consistent with maintenance of existing services. Estimated Revenue. £ Customs . . .. .. . . 8,530,000 Beer duty .. .. .. .. .. 615,000 Film-hire tax . . .. .. . . . . 30,000 Motor-vehicles —Duties, licenses, &c. .. .. 1,915,000 Stamp and death duties . . .. .. .. 3,780,000 Land-tax . . .. . . . . 1,240,000 Income-tax . . . . . . . . . . 3,960,000 Interest on public moneys . . . . . . 805,000 Interest on capital liability— Railways . . . . .. . . . . 1,380,000 Post Office .. .. .. .. 510,000 Interest on Public Debt Redemption Fund .. 985,000 Other receipts .. .. .. .. .. 1,370,000 £25,120,000
7—B. 6.
B.—6,
42
Estimated Results. The estimated expenditure for the year fully set out in the estimates. The position for the financial year estimated to be— £ Revenue .. 25,120,000 Expenditure— £ Permanent appropriations . . 17,289,000 Annual votes - . . . .. 7,585,000 —— 24,874,000 leaving .. .. .. . . . . £246,000 to provide for supplementary estimates and contingencies.
8.—6
TABLES TO ACCOMPANY THE FOREGOING STATEMENT. Page Table No. i.—Abstract of Receipts and Expenditure op the Financial Year ended 31st March, 1930. See Parliamentary Paper 8.-l [Part I]. Table No. 2. —-The Public Debt on 31st March, 1930. She Parliamentary Paper 8.-l [Part 111], Table No. 3.—Revenue for the Year ended 31st March, 1930, compared with the Year ended 31st March, 1929 .. .. .. .. .. .. .. .. ii Table No. 4.—Comparative Statement of the Estimated and Actual Revenue of the Consolidated Fund (Ordinary Revenue Account) for the Financial Year ended 31st March, 1930 ii Table No. s.—Estimated Revenue for 1930-31, compared with the Actual Revenue for 1929-30 .. iii Table No. 6.—Comparative Statement of Stamp and Death Duty Revenue for 1928-29 and 1929-30 iii Table No. 7.—Statement of the Customs Duties collected for 1929-30, compared with 1928-29 .. iv Table No. B.—Statement of the Actual Net Expenditure of the Consolidated Fund (Ordinary Revenue Account) for the Financial Year ended 31st March, 1930, compared with the Year ended 31st March, 1929.. .. .. .. .. iv Table No. 9.—Comparative Statement of the Appropriated and Actual Expenditure of the Consolidated Fund (Ordinary Revenue Account) for the Financial Year ended 31st March, 1930 .. .. .. .. .. .. .. .. vi Table No. 10. —Estimated Net Expenditure for 1930-31, compared with the Actual Net Expenditure for 1929-30 .. .. .. .. .. .. .. .. vii Table No. 11. —Statement showing how Accumulated Surpluses have been applied .. .. viii Table No. 12. —Statement of the Estimated Liabilities of the Consolidated Fund outstanding on 31st March, 1926 to 1930 inclusive .. .. .. .. .. ix Table No. 13.—Public Works Fund—Statement showing Net Expenditure under Appropriations for the Year ended 31st March, 1930, compared with the Year ended 31st March, 1929 .. x Table No. 14.—Statement showing the Total Ways and Means op the Public Works Fund, General Purposes Account, and the Total Net Expenditure to 31st March, 1930 .. xi Table No. 15.—Statement of the Estimated Liabilities of the Public Works Fund, General Purposes Account, outstanding on 31st March, 1926 to 1930 inclusive .. .. .. xii Table No. 16.—Statement of the Estimated Liabilities of the various Separate Accounts outstanding on 31st March, 1926 to 1930 inclusive .. .. .. .. xiii Table No. 17. —Receipts and Payments of Accounts, 1929-30, with Balances at Ist April, 1929, and 31st March, 1930 .. .. .. .. .. .. .. .. xiv Table No. 18.—Statement showing the available Financial Resources of the various Accounts on the 31st March, 1929, as compared with the 31st March, 1930 .. ... xv Table No. 19.—Statement showing* the Amount charged to "Unauthorized" in each Financial Year from Ist April, 1910, to 31st March, 1930 .. .. .. .. .. xvi Table No. 20.—Summary of the Public Debt and of the State Assets which may be set off against it, as at 31st March, 1930 .. .. .. .. .. ..xvi Table No. 21.—Statement showing Loans falling due in the Seven Years ending with the Year 1937, excluding Imperial Debt Repayments .. .. .. .. .. xviii Table No. 22. —Statement of Hale-yearly Instalments of Principal and Interest for Repayment of Debt funded with Imperial Government .. .. .. .. .. xviii Table No. 23. —Education Expenditure—Total Expenditure on Education out of Public Funds swce 1913-14 .. .. .. .. .. .. .. .. xix Table No. 24.—Statement of Amounts paid on account of Pensions for the Financial Years ended 31st March, 1926 to 1930 .. .. .. .. ■. •. xx Table No. 25.—Statement showing Imports and Exports of the Dominion in each Financial Year ended 31st March, 1922 to 193Q .. .. .. .. .. .. .. xx
i—B. 6.
B.—-6,
11
Table No. 3. Revenue for the Year ended 31st March, 1930, compared with the Year ended 31st March, 1929.
Table No. 4. Comparative Statement of the Estimated and Actual Revenue of the Consolidated Fund (Ordinary Revenue Account) for the Financial Year ended 31st March, 1930.
Year ended Year ended 31st March, , 31st March, Increase. j Decre ase. 1930. 1929. £ £ £ £ Customs .. .. .. .. .. 8,897,046 7,954,252 i 942,794 Beer duty.. .. .. .. .. 620,312 611,484 8,828 Motor-vehicles —Duties, licenses, &c. .. .. 1,510,790 1,243,577 267,213 Stamp and death duties .. .. .. 3,405,292 3,575,720 , .. 170,428 Land-tax .. .. .. .. .. 1,506,911 1.140,324 | 366,587 1 Income-tax .. .. .. .. 3,533,764 3,310,877 222,887 Registration and other fees .. .. .. 253,788 198,267 55,521 Marine .. .. .. .. .. 114,267 118,250 .. 3,983 Interest on public moneys .. .. .. 803,491 760,035 43,456 Interest on capital liability—Working railways .. 2,132,324 2,331,335 .. 199,011 Postal and Telegraph 481,000 428,000 53,000 Interest on Public Debt Redemption Fund .. 996,695 995,202 1,493 ! Rents of buildings .. .. .. .. 18,519 25,284 .. 6,765 Tourist and Health Resorts .. .. .. 77,235 72,895 4,340 I Miscellaneous .. .. .. .. 230,233 99,222 131,011 Territorial.. .. .. .. .. 214,229 198,803 15,426 Departmental and other receipts .. .. 553,965 536,149 17,816 2,130,372 380,187 380,187 Totals .. .. .. 25,349,861 23,599,676 1,750,185
Difference. Estimate for Actual for 1929-30. 1929-30. I More. Less. £ £ I £ £ Customs .. .. .. .. .. 8,400,000 8,897,046 497,046 Beer duty.. .. .. .. .. 600,000 620,312 20,312 Motor-vehicles —Duties, licenses, &c. .. .. 1,442,000 1,510,790 68,790 Stamp and death duties .. .. .. 3,614,000 ! 3,405,292 .. 208,708 Land-tax .. .. .. .. .. 1,493,000 1,506,911 13,911 Income-tax .. .. .. .. 3,400,000 3,533,764 133,764 Registration and other fees .. .. .. 220,000 1 253,788 33,788 Marine .. .. .. .. .. 120,000 114,267 .. 5,733 Interest on public moneys .. .. .. 820,000 803,491 .. 16,509 Interest on capital liabilityWorking railways .. .. .. 2,450,000 2,132,324 .. I 317,676 Postal and Telegraph .. .. 480,000 481,000 1,000 Interest on Public Debt Redemption Fund .. 995,000 996,695 1,695 i Rents of buildings .. .. .. .. 25,000 18,519 .. 6,481 Tourist and Health Resorts .. .. .. 77,000 77,235 235 Miscellaneous .. .. .. .. 239,000 230,233 .. 8,767 Territorial.. .. .. .. .. 198,000 214,229 16,229 Departmental and other receipts .. .. 599,000 553,965 .. 45,035 786,770 608,909 608,909 Totals.. .. .. .. 25,172,000 25,349,861 177,861
B.—G,
III
Table No. 5. Estimated Revenue of the Consolidated Fund (Ordinary Revenue Account) for 1930-31, compared with the Actual Revenue received for 1929-30.
Table No. 6. Comparative Statement of Stamp and Death Duty Revenue for 1928-29 and 1929-30.
Estimate Actual Differences. for for j | 1930-31. 1929-30. ! Increa6e | Decrease . Ohdinaby Revenue Account. £ £ £ £ Customs .. .. .. .. .. .. 8,530,000 8,897,046 .. 367,046 Beer duty .. .. .. .. .. .. 615,000 620,312 .. 5,312 Film-hire tax .. .. .. .. .. 30,000 .. 30,000 Motor-vehicles—Duties, licenses, &c. .. .. .. 1,915,000 1,510,79/) 404,210 Stamp and death duties .. .. .. .. 3,780,000 3,405,292 374,708 Land-tax .. .. .. .. .. .. 1,240,000 1,506,911 .. 266,911 Income-tax.. .. .. .. .. .. 3,960,000 3,533,764 426,236 Registration and other fees .. .. .. .. 235,000 253,788 .. 18,788 Marine .. .. .. .. .. .. 115,000 114,267 733 Interest on public moneys .. .. .. .. 805,000 803,491 1,509 Interest on capital liability—Working Railways .. .. 1,380,000 2,132,324 .. 752,324 Interest on capital liability—Post and Telegraph .. 510,000 481,000 29,000 Interest on Public Debt Redemption Fund .. .. 985,000 996,695 .. 11,695 Rents of buildings .. .. .. .. .. 18,000 18,519 .. 519 Tourist and Health Resorts .. .. .. .. 75,000 77,235 .. 2,235 Miscellaneous .. .. .. .. .. 194,000 230,233 .. 36,233 Territorial .. .. .. .. .. ., 198,000 214,229 .. 16,229 Departmental receipts .. .. .. .. 529,000 545,952 .. 16,952 Recoveries on account of expenditure of previous years .. 6,000 8,013 .. 2,013 1,266,396 1,496,257 1,266,396 Totals .. .. .. .. 25,120,000 25,349,861 .. 229,861
Item. 1928-29. 1929-30. Increase. Decrease. £ £ £ ! £ Adhesive stamps .. .. 124,406 115,463 | .. 8,943 Duty on instruments .. 439,452 457,148 17,696 Death duty (estate and sue- 1,865,172 1,662,163 .. 203,009 cession duty) Gift duty .. .. 79,342 65,276 .. , 14,066 Impressed stamps, and duty 197,834 209,476 | 11,642 1 on cheques Company licenses .. 72,327 76,066 3,739 Skarebrokers' licenses .. 706 912 206 Bank-note duty .. .. 191,221 193,017 1,796 Duties payable by racing clubs 541,179 542,899 1,720 Amusements-tax .. .. 60,586 79,887 19,301 Rates, fines, and miscellaneous 3,495 2,985 .. 510 56,100 226,528 56,100 Totals .. 3,575,720 3,405,292 .. 170,428
8.—6
IV
Table No. 7. Statement showing Customs Duties collected for Year 1929-30, compared with the Year 1928-29.
Table No. 8. Statement of the Actual Net Expenditure of the Consolidated Fund (Ordinary Revenue Account) for the Financial Year ended 31st March, 1930, compared with the Financial Year ended 31st March, 1929.
1929-30. 1928-29. 1 Increase. Decrease. £ £ £ £ Spirits, wine, and beer .. .. .. 1,172,199 1,062,152 110,047 Tobacco, cigars, and cigarettes .. .. 1,472,662 1,464,732 7,930 Apparel and textiles .. .. .. 1,866,548 1,726,231 140,317 Motor-vehicles and parts* .. .. .. 1,216,579 1,141,734 74,845 Otter goods .. .. .. .. 2,399,207 2,142,504 256,703 Primage .. .. .. .. .. 769,851 j 416,899 352,952 Totals .. .. .. 8,897,046 7,954,252 942,794 * Excluding tire-tax and petrol-tax earmarked to Main Highways.
Year ended Year ended i 31st March, 31st March, ! Increase. Decrease. 1930. 1929. Permanent appropriations — £ £ £ £ Civil List .. .. .. .. 30,528 30,167 361 Interest .. .. .. .. 9,134,972 8,675,221 459,751 Sinking Fund .. .. .. .. 2,889 2,882 7 Repayment of Public Debt .. .. 1,154,245 1,046,928 107,317 Reduction of Funded Debt .. .. 405,136 385,710 19,426 Under special Acts — Compensation for stock condemned and 30,203 29,762 441 destroyed Contribution to Singapore Naval Base .. 125,000 125,000 Education purposes .. .. .. 140,561 137,233 3,328 Exchange on remittances to and from London 47,602 24,813 22,789 Maintenance of overseas war graves and 30,750 30,750 memorials Main Highways Account Revenue Fund— 548,842 441,346 107,496 Transfer of tire tax, fees, fines, &c.* Motor-spirits taxation —Allocation of revenue 960,568 793,670 166,898 N.Z. Consolidated Stock —Amount paid Bank 24,493 29,844 .. 5,351 of England for management Pensions — Old-age .. .. .. .. 1,067,603 1,018,353 49,250 Widows' .. .. .. 322,886 312,963 9,923 Military .. 11,510 13,673 .. 2,163 War .. .. .. .. 1,204,422 1,178,646 25,776 Miners' .. .. .. .. 49,198 45,725 3,473 Blind .. .. .. .. 14,716 13,339 1,377 Various .. .. .. .. 18,687 20,020 .. 1,333 Family allowances .. .. ..I 60,876 54,815 6,061 Refunds in respect of totalizator-tax .. j 25,784 26,166 .. 382 Salaries and honoraria (legislative, judicial, ! 107,173 100,260 6,913 &c.) Subsidies paid to Hospital Boards! •• 732,456 673,689 58,767 Subsidies paid to local authorities on rates.. 219,688 216,065 3,623 Subsidies to superannuation funds and the 381,548 204,716 176,832 National Provident Fund Working Railways — Losses on isolated sections and branch lines | 29,929 496,578 .. 466,649 Loan to meet liabilities .. .. 150,000 .. 150,000 Transfer to Discharged Soldiers Settlement 50,000 50,000 Loans Act 1920 Depreciation Fund Account Westport Harbour Board—Repayment on .. Or. 30,000 .. Or. 30,000 account of advance Miscellaneous .. .. .. .. 145,340 96,263 49,077 17,227,605 16,244,597 1,428,886 445,878 * Includes expenses of collection. f Subsidy under Hospital and Charitable Institutions Act for the Jubilee Institute for the Blind is included in "Eduoation purposes."
8.—6,
V
Table No. 8 —continued. Statement of the Actual Net Expenditure of the Consolidated Fund (Ordinary Revenue Account) for the Financial Year ended 31st March, 1930, compared with the Financial Year ended 31st March, 1929—continued.
Year ended Year ended 31st March, 31st March, Increase. Deorease. 1930. 1929. I Annual appropriations— £ £ £ £ Legislative Departments .. .. .. 99,251 95,191 4,060 Prime Minister's Department .. .. 13,817 ' 13,084 733 Treasury Department .. .. .. 41,941 37,494 4,447 National Provident and Friendly Societies De- . 25,586 25,047 539 partment Land and Income Tax Department .. .. 65,314 61,099 4,215 Stamp Duties Department .. .. 99,339 96,580 2,759 Public Buildings .. .. .. .. 69,451 87,073 .. 17,622 Government and other Domains .. .. 4,939 5,299 .. 360 Maintenance and Repairs to Roads .. .. 79,504 85,436 .. 5,932 Maintenance of Irrigation Works .. .. 16,310 14,138 2,172 Native Department .. .. .. 35,714 31,677 4,037 Department of External Affairs .. .. 36,612 38,433 .. 1,821 Cook Islands .. .. .. .. 34,389 34,822 .. 433 Department of Industries and Commerce .. 9,356 31,419 .. 22,063 Department of Justice .. .. .. 135,383 132,623 2,760 Prisons Department .. .. .. 88,443 89,456 ! .. 1,013 Crown Law Office .. .. .. 5,824- 5,934 .. 110 Police Department .. .. .. 452,883 444,970 7,913 Pensions Department .. .. .. 176,743 165,912 10,831 Mines Department .. .. .. 27,531 32,424 .. 4,893 Department of Internal Affairs .. .. 351,039 I 359,966 .. 8,927 Audit Department .. .. .. 27,260 24,790 2,470 Public Service Commissioner's Office .. 6,374 7,062 .. 688 Printing and Stationery Department .. 214,976 220,796 .. 5,820 Mental Hospitals Department .. .. 307,040 303,300 3,740 Department of Health .. .. .. 247,250 239,757 7,493 Naval Defence .. .. .. .. 437,573 463,496 .. 25,923 Defence Department .. .. .. 454,828 464,595 .. 9,767 Customs Department .. .. .. 112,087 117,390 .. 5,303 Marine Department .. .. .. 133,706 110,212 23,494 Department of Labour .. .. .. 60,985 60,893 92 Department of Lands and Survey .. .. 192,819 181,748 11,071 Scenery-preservation .. .. .. 2,391 14,139 .. 11,748 Valuation Department .. .. .. 55,566 53,600 1,966 Electoral Department .. .. .. J 1,266 89,773 .. 78,507 Department of Agriculture. . .. .. 435,283 451,926 .. 16,643 Department of Tourist and Health Resorts .. 92,383 82,987 9,396 Department of Education .. .. .. 3,218,828 3,092,296 126,532 Department of Scientific and Industrial Research 65,774 57,535 8,239 Transport Department .. .. .. 5,313 .. 5,313 Services not provided for .. .. .. 22,206 7,959 14,247 7,973,277 7,932,331 258,519 217,573 1,687,405 663,451 663,451 Total expenditure .. .. 25,200,882 24,176,928 1,023,954
B.—6
Table No. 9. NET EXPENDITURE. Comparative Statement of the Appropriated and Actual Expenditure of the Consolidated Fund (Ordinary Revenue Account) for the Financial Year ended 31st March, 1930.
VI
Net Actual Net \ Difference. —- Appropriations, Expenditure, 1929-30. 1929-30. More ; Ug3 Permanent appropriations— £ £ £ £ Civil List.. .. .. .. .. 31,190 30,528 .. 662 Interest .. .. .. .. .. 9,04.5,111 9,134,972 89,861 Sinking Fund 2,882 2,889 7 Repayment of Public Debt .. .. .. 1,156,589 1,154,245 .. 2,344 Reduction of Funded Debt .. .. .. 405,136 405,136 Under special Acts.. .. .. .. 6,380,747 6,499,835 119,088 17,021,655 17,227,605 208,956 3,006 Annual appropriations— Legislative Departments .. .. .. 94,967 99,251 4.284 Prime Minister's Department .. .. 13,990 13,817 .. 173 Treasury Department .. .. .. 40,383 41,941 1,558 National Provident and Friendly Societies De- 25,757 : 25,586 . . 171 partment Land and Income Tax Department .. .. 64,913 j 65,314 401 Stamp Duties Department .. .. .. 98,806 j 99,339 533 Public Buildings .. .. .. .. 80,942 69,451 .. 11,491 Government and other Domains .. .. 6,330 | 4,939 .. 1,391 Maintenance and Repairs to Roads .. .. 93,600 79,504- .. 14,096 Maintenance of Irrigation Works .. .. 21,050 16,310 .. 4,740 Native Department .. .. .. 35,732 j 35,714 .. 18 Department of External Affairs .. .. 39,944 1 36,612 .. 3,332 Cook Islands 35,635 34,389 .. 1,246 Department of Industries and Commerce .. 9,932 9,356 .. 576 Department of Justice .. .. .. 134,125 135,383 1,258 Prisons Department .. .. .. 92,867 88,443 . . 4,424 Crown Law Office .. .. .. . 6,149 5,824 .. 325 Police Department.. .. .. .. 465,108 452,883 .. 12,225 Pensions Department .. .. .. 167,449 176,743 9,294 Mines Department .. .. .. 44,301 27,531 .. 16,770 Department of Internal Affairs .. .. 359,343 351,039 .. 8,304 Audit Department .. .. .. 28,399 27,260 .. 1,139 Public Service Commissioner's Office . . .. 7,818 6,374 .. 1,444 Printing and Stationery Department .. 228,310 214,976 .. 13,334 Mental Hospitals Department .. .. 311,656 307,040 .. 4,616 Department of Health .. .. ..I 251,827 247,250 .. 4,577 Naval Defence ! 505,017 437,573 .. 67,444 Defence Department .. .. .. 491,667 454,828 .. 36,839 Customs Department .. .. .. 119,887 112,087 .. 7,800 Marine Department .. .. .. 156,346 133,706 .. 22,640 Department of Labour .. .. . . 62,281 60,985 . . 1,296 Department of Lands and Survey .. .. 199,995 192,819 .. 7,176 Scenery-preservation .. .. .. 4,753 2,391 .. 2,362 Valuation Department .. .. .. 55,990 55,566 .. 424 Electoral Department .. .. .. 10,596 11,266 670 Department of Agriculture .. .. .. 456,618 435,283 .. 21,335 Department of Tourist and Health Resorts .. I 92,856 92,383 .. 473 Department of Education .. .. .. 3,200,785 3,218,828 18,043 Department of Scientific and Industrial Research 68,303 65,774 .. 2,529 Transport Department .. .. .. 7,042 5,313 .. 1,729 Services not provided for .. .. .. .. 22,206 22,206 8,191,469 7,973,277 58,247 276,439 267,203 279,445 267,203 Total .. .. .. .. 25,213,124 25,200,882 .. j 12,242
8.—6
VII
Table No. 10. Estimated Net Expenditure of the Ordinary Revenue Account for 1930-31, compared with Actual Net Expenditure for 1929-30.
Estimate Actual Difference. for for 1930-31. 1929-30. Inerea3e Decrease . Permanent Appropriations,— £ £ £ £ Civil List .. .. .. .. .. .. 30,450 80,528 1 .. 78 Interest .. .. .. .. .. .. 9,357,578 9,134,972 ! 222,606 Sinking Fund .. .. .. .. .. 2,921 2,889 32 Reduction of Funded Debt .. .. .. .. 425,540 405,136 20,404 Repayment of Public Debt .. .. .. .. 1,224,500 1,154,245 70,255 Under Special Acts .. .. .. .. .. 6,247,503 6,499,835 .. 252,332 17,288,492 17,227,60-5 j 313,297 252,410 Annual Appropriations,— 1 Legislative Departments .. .. .. .. 90,000 99,251 .. 9,251 Prime Minister's Department .. .. .. 13,900 13,817 83 Treasury Department .. .. .. .. 38,900 41,941 .. 3,041 National Provident and Friendly Societies Department .. 25,000 25,586 .. 586 Land and Income Tax Department .. .. .. 64,500 65,314 .. 814 Stamp Duties Department .. .. .. .. 97,000 99,339 .. 2,339 Public Buildings .. .. .. .. .. 75,000 69,451 5,549 Government and other Domains .. .. .. 4,600 4,939 .. 339 Maintenance and Repairs to Roads .. .. .. 45,000 79,504 .. 34,504 Maintenance of Irrigation Works, cfee. .. .. .. 15,000 16,310 1,310 Native Department .. .. .. .. .. 30,000 35,714 .. 5,714 Department of External Affairs .. .. .. 17,108 36,612 .. 19,504 Cook Islands .. .. .. .. .. 26,900 34,389 .. 7,489 Department of Industries and Commerce, Tourist, and 126,500 139,971* .. 13,471 Publicity Department of Justice .. .. .. 134,000 135,383 .. 1,383 Prisons Department .. .. .. .. .. 90,000 88,443 1,557 Crown Law Offioe .. .. .. .. .. 5,800 5,824 .. 24 Police Department .. .. .. .. .. 450,000 452,883 .. 2,883 Pensions Department .. .. .. .. 165,000 176,743 .. 11,743 Mines Department .. .. .. ,. .. 30,000 27,531 2,469 Department of Internal Affairs .. .. .. 279,400 312,807* .. 33,407 Audit Department .. .. .. .. .. 28,200 27,260 940 Public Service Commissioner's Office .. .. j 7,480 6,374 1,106 Printing and Stationery Department .. .. .. 220,000 214,976 5,024 Mental Hospitals Department .. .. .. 310,000 -307,040 2,960 Department of Health .. .. .. .. 240,000 247,250 .. 7,250 Naval Defence .. .. .. .. .. 450,000 437,573 12,427 Defence Department.. .. .. .. .. 275,000 454,828 .. 179,828 Customs Department .. .. .. 110,000 112,087 .. 2,087 Marine Department .. .. .. .. .. 180,092 133,706 46,386 Department of Labour .. .. .. .. 56,871 60,985 .. 4,114 Department of Lands and Survey .. .. .. 172,000 192,819 .. 20,819 Scenery-preservation.. .. .. .. .. 2,500 2,391 109 Valuation Department .. .. .. .. 55,000 55,566 .. 566 Electoral Department .. .. .. .. 9,992 11,266 .. 1,274 Department of Agriculture .. .. .. .. 390,000 435,283 .. 45,283 Department of Education .. .. .. .. 3,188,186 3,218,828 30,642 Department of Scientific and Industrial Research .. 60,000 65,774 .. 5,774 Transport Department .. .. .. .. 6,357 5,313 1,044 Services not provided for .. .. .. .. .. 22,206 .. 22,206 7,585,286 7,973,277 79,654 467,645 392,951 720,055 392,951 Total expenditure .. .. .. £24,873,778 £25,200,882 .. £327,104 * Expenditure on " Publicity " was previously paid out of vote " Internal Affairs " and is included under that vote in Tables 8 and 9.
8.—6
VIII
Table No. 11. Statement showing how Accumulated Surpluses have been applied. To Accumulated surpluses £ By Transfers to — £ £ at 31st March, 1930 30,395,817 Discharged Soldiers Settlement Account — 1920-21 .. .. 13,330,000 1921-22 .. .. 170,000 13,500,000 Discharged Soldiers Settlement Loans Act 1920 Depreciation Fund Account — 1920-21 .. .. 50,000 1921-22 .. .. 50,000 1922-23 .. .. 50,000 1923-24 .. .. 50,000 200,000 Public Works Fund— 1920-21 .. .. 500,000 1923-24 .. .. 1,000,000 1 .. .. 1,000,000 1925-26 .. .. 500,000 1927-28 .. .. 250,000 3,250,000 Reserve Fund Securities Account — For purchase of securities, 1920-21 .. .. 1,200,000 For redemption of loan, 1922-23 .. .. 800,000 2,000,000 Loans redemption — 1921-22 .. .. 560,011 1922-23 .. .. 2,337,360 1923-24 .. .. 1,367,341 1924-25 .. .. 1,052,130 1925-26 .. .. 566,161* 1926-27 .. .. 588,868f 1927-28 .. .. 95,980 1928-29 .. .. 50 • 6,567,901 Bank of New Zealand Shares Account— £ 1926-27 .. .. 808,594 1927-28 .. .. 117,187 1928-29 .. .. 58,594 984,375 Education Loans Account, 1923-24 . . 100,000 Subsidies for relief of unemployment .. 255,400 Assistance towards earthquake services .. 3,516 Advance to State Forests Account .. 45,000 Advance to Rural Intermediate Credit Board .. .. .. .. 272,100 Charges and expenses of renewing loans.. 4,105 Ordinary revenue — To balance revenue and expenditure— £ 1921-22 .. 279,831 1928-29 .. .. 577,252 857,083 Investments at 31st March, 1930 . . 713.966 Balance (cash and imprests) at 31st March, 1930 .. ..1,642,371 £30,395,817 £30,395,817 * Includes £151,824 of reparation-moneys received from Germany. f Includes £73,710 of reparationmoneys received from Germany.
B. —6
IX
Table No. 12. Statement of the Estimated Liabilities chargeable on the Consolidated Fund (Ordinary Revenue Account) outstanding on the 31st March each Year from 1926 to 1930.
ii—B. 6.
1926. 1927. 1928. ! 1929. 1930. Revenue Account. £ £ £ £ Permanent Appropriations,— Civil List .. .. .. .. .. .. 313 337 335 238 295 Under Special Acts of the Legislature .. .. .. 13,435 16,835 16,540 48,830 48,952 Pensions .. .. .. .. .. .. 701 1,202 898 1,020 789 14,449 18,374 17,773 50,088 50,036 Annual Appropriations,— Legislative Departments .. .. .. .. 1,007 2,751 4,297 4,182 3,793 Departments of Minister of Finance* .. .. .. 11,064 8,226 16,253 18,843 16,949 Post and Telegraph Department .. .. .. 93,919 61,876 89,230 ir Public Buildings, Domains, Maintenance of Roads, and Maintenance of Irrigation Works .. .. .. 17,315 23,301 19,189 14,858 20,162 Justice Departmentf .. .. .. .. .. 19,258 15,155 38,603 18,845 17,743 Mines Department .. .. .. .. .. 2,371 3,698 3,961 1,656 1,991 Internal Affairs Department} .. .. .. 61,038 76,784 53,442 69,368 57,165 Defence Departments .. .. .. .. 94,392 41,813 41,541 28,326 36,871 SSKS3525":: :: :: :: :: 5 M» ♦.»», Labour Department .. .. .. .. .. 1,148 2,152 1,417 2,065 1,811 Lands Department .. .. .. .. .. 1,840 3,332 5,024 5,631 5,521 Agriculture Department|| .. .. .. .. 35,103 28,137 44,033 49,819 42,945 Education Department .. .. .. .. 10,405 33,828 41,455 32,577 23,696 Valuation and Electoral Departments .. .. .. 2,337 2,302 1,865 2,583 2,060 360,395 308,875 365,390 254,418 236,943 Services not provided for .. .. .. .. 112 2,652 419 293 911 Imprest Supply Act, 1927, Section 4 .. .. .. .. .. 843 227 Local Bodies Empowering (Relief of Unemployment) Amendment Act, 1928, Section 3 .. .. .. .. .. .. .. 721 11,651 Refunds of Revenue .. .. .. .. .. 1,344 5,453 8,052 4,797 4,952 Totals .. .. .. .. ..376,300 335,354 387,477 310,544 .304,493 * Includes Treasury, Land and Income Tax, Stamp Duties, and National Provident Fund and Friendly Societies Departments. f Includes Native. External Affairs, Supreme arid Magistrates' Courts, Prisons, Police, Cook Islands, and Crown Law. t Includes Audit, Printing nnd Stationery, Public Service Commissioner's Ollice, Mental Hospitals, Pensions, Scenery Preservation (from 1924-25), Health, Prime Minister's, Scientific and Industrial Research, and Transport Departments. § Includes Naval Defence. || Includes Industries and Commerce and Tourists Departments. If Now a separate account (see Table No. 16).
8.—6
X
Table No. 13. PUBLIC WORKS FUND. Statement showing the Net Expenditure under Appropriations for the Year ended 31st March, 1930, compared with the Year ended 31st March, 1929.
— — — Vntp Year ended Year ended Incr»a«f necrew vote 31st March, 1930. 31st March, 1929. j Increase. Decrease. £ J £ £ £ Public Works, Departmental .. ... 132,527 142,176 .. J), 649 Raihvay-eonstruction .. .. j 1,452,860 1,002,872 449,988 Additions to Open Lines .. .. 359,661 213,405 146,256 Public Buildings— General .. .. .. .. 28,748 4,307 24,441 Courthouses .. .. .. 15,765 8,387 7,378 Prison Buildings and Works .. 18,814 12,572 6,242 Police-stations .. .. .. 8,442 6,925 1,517 Postal and Telegraph .. .. 104,157 62,087 42,070 Agricultural .. .. .. 2,963 j 2,808 155 Mental Hospital Buildings .. .. 152,096 96,782 55,314 Health and Hospital Institutions .. 16,651 19,637 .. 2,986 Timber-supply and Sawmills, &c. .. 1 Cr. 3,608 Cr. 5,115 .. Cr. 1,507 Acquisition and Operation of Quarries .. j 329 Cr. 6,030 6,359 Lighthouses .. .. .. 4,460 2,638 1,822 Harbour-works .. .. .. 10,736 14,425 .. 3,689 Development of Tourist Resorts .. 20,547 39,254 .. 18,707 Department of Immigration .. .. 41,756 50,266 .. 8,510 Roads, &c. .. .. .. .. 1,005,329 780,990 224,339 Roads on Goldfields .. .. .. 1,885 1,005 880 Roads to give Access to Outlying Districts 53,693 51,582 2,111 Telegraph Extension .. .. .. 594,383 624,414 .. 30,031 Contingent Defence .. .. .. 46,76J 67,652 .. 1 20,886 Lands, Miscellaneous .. .. 79,454 85,861 .. 6,407 Irrigation, Water-supply, and Drainage.. 69,657 55,197 1.4,460 Plant, Material, and Stores .. .. Cr. 31,813 4,594 .. 36,407 Transfer to Main Highways Account, 200,000 200,000 Construction Fund Services not provided for .. .. 257 77 180 983,512 135,765 135,765 Totals .. .. .. 4,386,515 3,538,768 847,747
8.—6
XI
Table No. 14. Statement showing the Total Ways and Means of the Public Works Fund, General Purposes Account, and the Total Net Expenditure to the 31st March, 1930.
WAYS AND MEANS. Loans : — £ s. d. £ s. d. Immigration and Public Works Loan, 1870 .. .. .. 4,000,000 0 0 Immigration and Publio Works Loan, 1873 .. .. .. 2,000,000 0 0 Immigration and Public Works Loan, 1874 .. .. .. 4,000,000 0 0 General Purposes Loan Act, 1873 .. .. ... .. 750,000 0 0 New Zealand Loan Act, 1876 .. .. .. .. 750,000 0 0 New Zealand Loan Act, 1877 .. .. .. .. 2,200,000 0 0 New Zealand Loan Act, 1879 .. .. .. .. 5,000,000 0 0 New Zealand Loan Act, 1882 .. .. .. .. 3,000,000 0 0 New Zealand Colonial Inscribed Stock Loan Act, 1882 .. .. 250,000 0 0 North Island Main Trunk Railway Loan Act, 1882 .. .. 1,000,000 0 0 New Zealand Loan Act, 1884 .. .. .. .. 1,500,000 0 0 New Zealand Loan Act, 1886 .. .. .. .. 1,325,000 0 0 District Railways Purchasing Acts, 1885 and 1886 .. .. 479,487 7 11 New Zealand Loan Act, 1888 .. .. .. .. 1,000,000 0 0 Native Land Purchase Act, 1892 .. .. .. .. 149,700 0 0 Lands Improvement and Native Lands Acquisition Act, 1894 .. 500,000 0 0 Aid to Public Works and Land Settlement Act, 1896 .. .. 1,000,000 0 0 Aid to Public Works and Land Settlement Amendment Act, 1897.. 250,000 0 0 Aid to Public Works and Land Settlement Amendment Act, 1898.. 500,000 0 0 Aid to Public Works and Land Settlement Act, 1899 .. .. 1,000,000 0 0 Aid to Public Works and Land Settlement Act, 1900 .. .. 1,011,600 0 0 Aid to Public Works and Land Settlement Act, 1901 .. .. 1,250,000 0 0 Aid to Public Works and Land Settlement Act, 1902 .. .. 1,750,000 0 0 Aid to Public Works and Land Settlement Act, 1903 .. .. 997,690 0 0 Aid to Public Works and Land Settlement Act, 1904 .. .. 750,000 0 0 Aid to Public Works and Land Settlement Act, 1905 .. 1,000,000 0 0 Aid to Public Works and Land Settlement Act, 1906 .. .. 989,700 0 0 Aid to Public Works and Land Settlement Act, 1907 . . . . 1,000,000 0 0 Aid to Public Works and Land Settlement Act, 1908 .. .. 1,250,000 0 0 Aid to Public Works and Land Settlement Act, 1909 .. .. K000,000 0 0 Aid to Public Works and Land Settlement Act, 1910 .. .. 1,750,000 0 0 Aid to Public Works and Land Settlement Act, 1911 .. .. 1,500,000 0 0 Aid to Public Works and Land Settlement Act, 1912 .. ..I 1,748,900 0 0 Aid to Public Works and Land Settlement Act, 1913 .. .. 1,750,000 0 0 Aid to Public Works and Land Settlement Act, 1914 .. .. 3,000,000 0 0 Aid to Public Works and Land Settlement Act, 1921 .. .. 5,060,613 0 3 Aid to Public Works and Land Settlement Act, 1922 .. .. 4,408,860 12 3 Finance Act, 1909 .. .. .. .. .. .. 1,250,000 0 0 Finance Act, 1915, and New Zealand Loans Act, 1915 .. .. 2,000,000 0 0 Finance Act, 1916 .. .. .. .. .. .. 1,000,000 0 0 Finance Act, 1917 .. .. .. .. .. .. 850,000 0 0 Finance Act, 1918 (No. 2) .. .. .. .. .. 2,500,000 0 0 Finance Act, 1919, Section 5 .. .. .. .. 750,000 0 0 Finance Act, 1920, Section 15 .. .. .. .. 2,500,000 0 0 Finance Act, 1921, Section 10 .. .. .. .. 2,673,111 10 11 Finance Act, 1923, Section 2 .. .. .. .. 4,306,608 17 6 Finance Act, 1924, Section 2 .. .. .. .. 2,065,883 12 6 Finance Act, 1925, Section 2 .. .. .. .. 4,151,450 10 2 Finance Act, 1926, Section 2 .. .. .. .. 5,220,134 10 7 Finance Act, 1927 (No. 2), Section 2 .. .. .. .. 4,122,864 0 9 Finance Act, 1928, Section 2 .. .. .. .. 2,000,000 0 0 Post and Telegraph Act, 1908 .. .. .. .. j 200,000 0 0 Midland Railway Petitions Settlement Acts, 1902 and 1903 .. , 150,000 0 0 Paeroa-Waihi Railways Act, 1903 .. .. .. .. 75,000 0 0 Waikaka Branch Railway Act, 1905 .. .. .. .. 50,000 0 0 Wellington and Manawatu Railway Purchase Act, 1908 .. .. 1,000,000 0 0 Appropriation Act, 1912 .. .. .. .. .. 15,000 0 0 Irrigation and Water-supply Act, 1912 .. .. .. 100,000 0 0 1 97,851,604 2 10 Receipts in Aid : — Amount transferred from Consolidated Fund .. .. .. 14,555,000 0 0 Contributions of Canterbury Province for Railways .. .. 56,000 0 0 Proceeds of Railway Material handed over to Cook County Council 4,963 7 4. Stamp Duties to 31st December, 1876 .. .. .. 264,657 16 4 Transfer from Confiscated Lands Liabilities Account .. .. 19,963 1 3 Receipts under Section .16 of the Reserves and other Lands Disposal | 21,890 4 5 and Public Bodies Empowering Act, 1912 Special Receipts under Section 9 of the Railways Construction Act, 60,616 3 0 1878 Special Receipts under the Ellesmere Lake Lands Acts, 1888 and 66,415 13 0 1893 Special Receipts under the Railways Authorization and Manage- 2,257 1 9 ment Act, 1891 Special Receipts under the North Island Main Trunk Railway Loan 114,550 19 6 Application Act, 1886 Sinking Funds released .. .. .. 506,819 19 3 15,673,134 5 10 £113,524,738 8 8
8.—6
XII
Table No. 14 —continued. Statement showing the Total Ways and Means of the Public Works Fund, General Purposes Account, and the Total Net Expenditure to the 31st March, 1930—continued.
Table No. 15. Statement of the Estimated Liabilities chargeable on the Public Works Fund (General Purposes Account), outstanding on the 31st March each Year from 1926 to 1930.
NET EXPENDITURE. Expenditure on— £ s. d. £ s. d. Immigration .. .. .. .. .. .. 3,276,305 8 1 Public Works, Departmental .. .. .. .. .. 2,625,430 19 5 Railways, including Surveys of New Lines and Payment to Midland 54,131,309 12 2 Railway Bondholders Roads 18,859,766 12 2 Land-purchases .. .. .. .. .. .. 2,061,147 1 10 Development of Mining .. .. .. .. ■■ 881,325 0 11 Telegraph Extension .. .. .. .. •• ■■ 10,510,744 3 11 Public Buildings .. .. .. .. .. - 10,696,214 11 4 Lighthouses, Harbour-works, and Harbour-defences .. .. 1,280,971 19 2 Contingent Defence .. .. .. .. .. .. 1,393,361 9 3 Rates on Native Lands .. .. .. -• •• 68,671 16 10 Thermal Springs .. .. .. .. .. .. 14,599 13 2 Development of Tourist Resorts .. .. .. 518,913 12 4 Lands Improvement .. .. .■ .. .. .. 591,722 10 5 Plant, Material, and Stores .. .. •• •• 319,820 13 11 Charges and Expenses of raising Loans . . .. . .. 3,549,209 9 9 Coal-mines .. .. .. .. .. .. .. 10,835 8 0 Interest and Sinking Eund .. .. .. .. 218,500 0 0 Irrigation and Water-supply .. .. .. .. 906,128 19 3 Timber Supply, Sawmills, &c. .. .. .. -• .. Or. 3,218 1 10 Acquisition and Operation of Quarries .. .. .. .. 5,417 11 11 Motor Transport Service .. . . . . ■ . ■ • 33,635 5 3 Transfer to Main Highways Account, Construction Eund .. .. 1,226,000 0 0 113,176,613 17 3 Balance on 31st March, 1930, — Cash in the Public Account .. .. .. . . 315,410 19 9 Imprests outstanding .. .. .. .. . . . 32,713 II 8 348,124 11 5 £113,524,738 8 8
! 1926. I 1927. 1928. j 1929. I 1930. ■ I ,W\ : f Annual Appropriations— £ £ £ £ i £ Public Works, Departmental .. .. .. 1,768 2,198 2,473 3,935 4,1L0 Railways .. .. .. .. .. .. 99,592 122,980 114,964 94,721 148,032 Irrigation and Water-supply and Drainage .. .. 2,406 3,478 2,216 5,968 1 5,246 Public Buildings .. .. .. .. .. 19,521 20,880 15,276 20,488 I 27,785 Timber-supply, &c. .. .. .. .. 81 1,367 552 426 242 Acquisition and Operation of Quarries .. 2,011 1,053 1,997 1,637 j 2,239 Lighthouses, Harbour-works, and Harbour-defences .. 591 861 1,423 1,182 | 1,201 Development of Tourist Besorts .. .. .. 6,697 992 4,590 2,601 5,636 Immigration .. .. .. .. 33,179 20,238 13,216 8,521 6,233 Roads .. .. .. .. .. .. 54,859 74,969 94,445 77,420 128,359 Telegraph Extension .. .. 214,007 211,700 227,018 206,836 287,732 Lands, Miscellaneous .. .. .. .. 3,621 1,585 3,170 2,172 8,841 Plant, Material, and Stores .. .. .. 4,292 2,610 7,376 4,247 3,993 Totals .. .. .. .. 442,625 464,911 488,718 430,154 629,649
8.—6
XIII
Table No. 16. Statement of the Estimated Liabilities chargeable on the undermentioned Separate Accounts outstanding on the 31st March each Year from 1926 to 1930.
I 1926. 1927, 1928. 1929. j 1930. ; I i I - £ j £ £ £ £ Cheviot Estate Account' .. .. .. .. .. .. .. .. 162 Deteriorated Lands Account .. .. .. .. 117 839 34 258 15 Discharged Soldiers Settlement Account .. .. .. .. 5,012 168 44 Education Loans Account .. .. .. .. 2,214 3,962 3,855 7,992 1,248 Deposits Account .. .. .. .. .. 3 .. 569 Electric Supply Account .. i. .. .. 87,856 141,064 330,055 112,612 122,816 Government Accident Insurance Account .. .. 956 345 316 388 319 Government Life Insurance Account .. .. .. 1,142 1,269 1,339 2,031 1,535 Hauraki Plains Settlement Account .. .. .. 1,808 4,836 4,160 4,644 5,519 Kauri-gum Industry Account .. .. . . 441 Land Assurance Fund Account .. .. .. .. .. .. .. 21 Land for Settlements Account .. .. .. 1,143 870 35 2,231 9,414 Land for Settlements Account (Discharged Soldiers Settle- 238 74 2,162 ment Account) Land for Settlements Account (Opening up Crown Lands 2,799 .. .. .. j for Settlement Account) Main Highways Account — Revenue Fund .. .. .. .. .. 73,703 64,276 66,304 91,699 i 114,471 Construction Fund .. .. .. .. 81,847 124,746 59,418 130,156 112,553 Mining Advances Account .. .. .. . . .. .. .. 2 23 National Endowment Account .. .. .. 1,005 .. 88 403 1,085 National Endowment Trust Account . . .. .. .. .. . . I.,273 Native Land Settlement Account .. .. .. 542 4,045 3,881 8,794 7,102 Native Trustee's Account .. .. .. .. 57 39 53 100 j 100 Post Office Account* .. .. .. .. .. .. .. 65,963 ' 70,440 Public Service Superannuation Fund Account .. .. 23 157 171 170 203 Public Trust Office Account.. .. .. .. .. 5,032 6,142 6,696 8,890 Railways Improvement Authorization Act 1914 Account 42,083 50,524 140,866 176,334 91,273 Rangitaiki Land Drainage Account .. .. .. 448 970 1,540 1,746 767 State Advances Account .. .. .. .. 2,699 4,268 64,939 20,149 56,216 State Coal-mines Account .. .. .. .. 4,930 21,130 16,926 15,93) 22,547 State Fire Insurance Account .. . . .. 202 59 .. 2 15 State Forests Account .. .. .. .. 13,455 11,342 10,487 9,818 9,635 Swamp Land Drainage Account .. .. .. 1,174 3,471 3,670 5,826 6,169 Waihou and Ohinemuri Rivers Improvement Account . . 2,954 6,403 6,388 8,048 2,381 Westport Harbour Account .. .. .. .. 612 4,621 647 2,331 1,292 Working Railways Account* .. .. .. 309,278 329,829 358,110 335,101 364,479 * Formerly vote under Consolidated Fund.
8.—6,
XIV
Table No. 17. Receipts and Payments of Accounts, 1929-30, with Balances at 1st April, 1929, and 31st March, 1930.
Balance, 31st March Balance, Credits N t 1930. Account. 1st April, Receipts (Net). in ExnendiW 1929. j Reduction. In Cash. Investments Consolidated Fund — £ £ £ £ ' £ £ Ordinary Revenue .. .. 2,453,541 25,349,861 4,372,942 25,447,065 1,642,371 713,966 Nauru and Ocean Islands .. .. 3,284 36,242 .. 36,354 122 3,050 Nauru and Ocean Islands Sinking Fund 10,022 10,410 .. 20,120 12 300 Accounts of Local Bodies .. .. 7,349 37,705 .. 35,325 9,729 Deposits .. .. .. .. 630,549 2,495,240 .. 2,777,482 11,933 336,374 Public Works Fund — General Purposes .. .. .. 3,889,084 1,376,751 766,744 4,917,710 348,125 Waihou and Ohinemuri Rivers Im- 11,906 20,571 5,342 29,133 3,344 provement Electric Supply .. .. .. 697,088 935,535 104,388 1,290,742 165,381 176,500 Electric Supply Sinking Fund .. 115,854 56,875 .. .. 39 172,690 Advances to other Governments .. 15,274 299,521 .. 293,750 21,045 Bank of New Zealand Shares .. .. 1,859,375 245,313 .. 245,313 .. 1,859,375 Cheviot Estate .. .. .. 210,686 26,590 .. 6,382 60,604 170,290 Deteriorated Lands .. .. .. 13,325 1,066 .. 2,997 1,337 10,057 Discharged Soldiers Settlement .. 420,520 1,824,494 1,203 2,004,791 215,582 24,641 Discharged Soldiers Settlement Act 1920 484,676 74,059 .. .. 357,992 200,743 Depreciation Fund Education Loans .. .. .. 38,605 425,581 12,078 444,344 19,842 General Purposes Relief .. .. 24,896 9,829 .. 3,094 16,841 14,790 Hauraki Plains Settlement .. .. 29,282 28,800 23,523 33,830 24,252 Howard Estate Hunter Soldiers'Assistance Trust .. 5,293 951 .. 139 355 5,750 Hutt Valley Lands Settlement .. 616 53,355 .. 53,910 61 Kauri-gum Industry .. .. .. 3,336 15,691 Dr. 127 2,305 16,722 Land Assurance Fund .. .. 85,834 6,915 I 7,811 58,838 26,100 Land for Settlements.. .. .. 296,815 1,293,297 5,402 1,032,493 267,429 290,190 Land for Settlements—Discharged Soldiers 4 193 .. 197 Settlement Loans Redemption .. .. .. 65,296 28,541,655 .. 28,386,801 117,350 102,800 Main Highways Revenue .. .. 521,604 1,486,536 56,266 1,871,687 120,553 15,900 Main Highways Construction .. .. 8,090 1,299,625 71,674 1,147,148 160,567 Mining Advances .. .. .. 14,550 487 .. 313 724 14,000 National Endowment .. .. 124,886 148,473 .. 138,351 44,158 90,850 National Endowment Trust .. .. 38,728 4,890 .. 1,416 3,062 39,140 Native Land Settlement .. .. 13,026 204,184 1,742 161,468 55,742 Public Debt Repayment .. .. 5,326 1,156,199 .. 1,158,472 3,053 Railways Improvement Authorization Act, 1,174,816 437,426 132,991 1,285,085 172,157 155,000 1914 Rangitaiki Land Drainage .. .. 6,411 14,969 721 18,962 2,418 Remittances from London .. .. .. 250,000 .. 250,000 Remittances to London .. .. .. 3,944,680 .. 3,948,579 Dr. 3,899 Reserve Fund .. .. 2,000,000 68,563 .. . . .. 2,068,563 State Advances Loan .. .. 1,181,875 3,263,887 .. 4,345,365 100,397 State Coal-mines .. .. .. 38,472 331,101 2,118 310,516 8,257 50,800 State Coal-mines Sinking Fund. .. 4,854 8,408 .. 5,318 344 7,600 State Forests .. .. .. 17,247 463,058 3,007 431,584 48,721 Swamp Land Drainage .. .. 8,672 60,570 2,441 62,234 7,008 Westport Harbour .. .. .. 19,348 67,722 416 81,070 6,000 Working Railways .. .. .. 685,236 8,261,737 1,347,240 8,869,737 70,936 6,300 Public Account Cash Balance Investment .. .. .. .. X>r.2,500,000 2,500,000 17,235,651 84,639,015 6,910,112 91,159,393 1,659,504 9,055,769
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XV
Table No. 18. Statement showing the available Financial Resources of the various Accounts on the 31st March, 1929, as compared with the 31st March, 1930.
1929. 1930. Account - Ba^ Ce Liabilities 1 Liabilities jXritoto 31st March, 31st March, ™' 3 j? t g 31st March, 31st March, raising Loan 1929. 1929. on 1930. 1930. on 51 ' 1 ' Consolidated Fund— ££££££ Ordinary Revenue .. .. 2,453,541 310,544 .. 2,356,337 304,493 Nauru and Ocean Islands .. .. 3,284 .. .. 3,172 Nauru and Ocean Islands Sinking Fund 10,022 .. .. 312 Public Works Fund — General Purposes .. .. 1 3,889,084 430,154 1,061,050 348,125 629,649 5,061,050 Waihou and Ohinemuri Rivers Tm- 11,906 8,048 30,000 3,344 2,381 14,375 provement Electric Supply .. .. .. 697,088 112,612 1,243,990 341,881 122,816 1,243,990 Electric Supply Sinking Fund .. 115,854 .. .. 172,729 Advances to other Governments .. 15,274 .. .. 21,045 Bank of New Zealand Shares .. 1,859,375 .. .. 1,859,375 Cheviot Estate .. .. .. 210,686 .. .. 230,894 162 Deteriorated Lands .. .. .. 13,325 258 278,000 11,394 15 278,000 Discharged Soldiers Settlement .. 420,520 168 862,750 240,223 44 Discharged Soldiers Settlement Loans 484,676 .. .. 558,735 Act 1920 Depreciation Fund Education Loans .. .. .. 38,605 7,992 814,160 19,842 1,248 1,404,160 General Purposes Relief .. .. 24,896 .. .. 31,631 Hauraki Plains Settlement .. .. 29,282 4,644 125,000 24,252 5,519 j 115,000 Hunter Soldiers'Assistance Trust .. 5,293 .. .. 6,105 .. ! Hutt Valley Lands Settlement .. 616 .. .. 61 Kauri-gum Industry .. .. 3,336 .. .. 16,722 Laud Assurance Fund .. .. 85,834 .. .. 84,938 21 Land for Settlements .. .. 296,815 2,231 1,000,000 557,619 9,414 6,000,000 Land for Settlements —Discharged Soldiers 4 .. 1,500 000 Settlement Loans Redemption .. .. .. 65,296 .. .. 220,150 Main Highways— Revenue Fund .. .. .. 521,604 91,699 .. 136,453 114,471 Construction Fund .. .. 8,090 130,156 2,120,000 160,567 112,553 1,620,375 Mining Advances .. .. .. 14,550 2 50,000 14,724 23 ; 50,000 National Endowment .. .. 124,886 403 .. 135,008 1,085 ! National Endowment Trust .. .. 38,728 1,273 .. 42,202 Native Land Settlement .. .. 13,026 8,794 500,000 55,742 7,102 j 500,000 Public Debt Repayment .. .. 5,326 .. .. 3,053 Railways Improvement Authorization 1,174,816 176,334 1,515,000 327,157 91,273 1,515,000 Act, 1914 Rangitaiki Land Drainage .. .. 6,411. 1,746 7,000 2,418 767 7,000 Reserve Fund .. .. .. 2,000,000 .. .. 2,068,563 Samoan Loan Suspense .. .. .. .. 4,800 .. .. 4,800 State Coal-mines .. .. .. 38,472 15,931 55,000 59,057 22,547 55,000 State Coal-mines Sinking Fund .. 4,854 .. .. 7,944 State Forests .. .. .. 17,247 9,818 1.88,225 48,721 9,635 336,225 Swamp Land Drainage .. .. 8,672 5,826 150,000 7,008 6,169 150,000 Westport Harbour .. .. .. 19,348 2,331 .. 6,000 1,292 Working Railways .. .. .. 685,236 335,101 .. 77,236 364,479 State Advances Loan .. .. 1,181,875 .. 1.0,116,495 100,397 .. 10,173,920 Additional Unexhausted Authorities for raising Loans. Hutt Railway and Road Improvement .. .. 3,320 Acts, 1903, 1905, 1907, 1910 Government Railways Act, 1926, sec- .. .. 55,470 tion 69 Finance Act, 1917, section 77 (Dis- .. .. 1,000,000 charged Soldiers Employment) Naval Defence Act, 1909 (inoperative).. .. .. 299,400 Government Accident Insurance Act,1908 .. .. 23,000 .. .. 23,000 State Fire Insurance Act, 1908 .. . . . . 98,000 .. . . 98,000 Finance Act, 1918 (No. 2), Part IV (War .. .. 4,467,360 Expenses) Totals .. .. .. 16,597,753 1,656,065 27,568,020 10,361,136 1,807,158 28,649,895
B— 6
Table No. 19. Statement showing the Amount charged to "Unauthorized" in each Financial Year from 1st April, 1910, to 31st March, 1930.
Table No. 20. Summary op the Public Debt and of the State Assets which may be set off against it, as at 31st March, 1930, together with Supporting Schedule showing Details of Assets. Debt. £ Ordinary debt .. •• •• •• •• •. •• • 154,297,847 War debt .. •• •• •• •• •• •• • 69,783,525 State Advances debt .. .. •• .. .. .. 35,440,085 Discharged soldiers debt .. . . .. .. .. .. 7, 861, 886 Surplus assets over debt .. .. .. .. .. .. .. 5,562,700 £272,946,043 Assets. Cash and investments (Reserve Funds, Bank of New Zealand shares, Public Debt £ Redemption Fund, &c.) .. .. .. .. .. .. .. 31,566,682 Sinking funds accrued .. .. .. •• .. .. .. .. 2,331,423 Loans and advances outstanding (Discharged Soldiers, State Advances, &c.) .. .. 44,217,044 Revenue Earning and Trading Accounts (Railways, Telegraphs, &c.) .. .. 79,495,792 Lands and forests (Crown lands, State forests, &c.).. .. .. .. 72,144,331 Indirectly productive expenditure — £ Roads and public buildings, &c. .. .. .. .. 39,914,466 Immigration .. .. •• .. 3,276,305 — 43,190,771 £272,946,043
XVI
Consolidated Fund.—Revenue Account. j Pm .„ m Tm« — Otheb Public WOBKS rn A „. T FINANCIAL YEAB. ACCOUNTS. FUND. TOTAL. SerV i 0 deaTor Pr °" Excess ° f Votes -! Total - £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. 1910-1911.. .. 10,427 9 4 27,200 14 6 37,628 3 10 1,009 9 7 12,833 7 5 51,471 0 10 1911-1912.. .. 20,332 3 1 62,950 14 7 83,282 17 8 860 5 4 4,982 8 7 89,125 11 7 1912-1913.. .. 2,506 15 0 115,428 2 5 117,934 17 5 63 15 0 73,401 8 3 191,403 0 8 1913-1914.. .. 4,730 15 8 80,228 10 11 84,959 6 7 137 5 8 16,671 3 3 101,767 15 6 1914-1915.. .. 109,512 12 4 68,004 2 1 177,516 14 5 853 3 5 8,189 3 10,186,559 1 8 1915-1916.. .. 30,865 10 2 47,222 13 9 78,088 3 11 14,742 5 9 2,363 3 9 95,193 13 5 1916-1917.. .. 41,600 17 4 106,454 9 0 148,055 6 4 34,852 5 5 6,636 4 1 189,543 15 10 1917-1918.. .. 17,909 4 7 48,886 8 7 66,795 13 2 26,010 17 11 7,693 0 5 100,499 11 6 1918-1919.. .. 13,519 17 3 66,701 19 8 80,221 16 11 .. .. 80,221 16 11 1919-1920.. .. 77,149 13 2 362,295 0 5 439,444 13 7 1,239 5 4 11,072 14 6 451,756 13 5 1920-1921.. .. 108,498 19 2 392,596 5 9 501,095 4 11 1,750 12 6 168,745 11 6 671,591 8 11 1921-1922.. .. 2,455 13 7 105,962 14 10 108,418 8 5 2,982 1 6 292,233 1 4 403,633 11 3 1922-1923.. .. 65,687 7 9 76,710 6 9 142,397 14 6 754 10 10 41 4 2 143,193 9 6 1923-1924.. .. 189,384 15 11 1,983 3 1 191,367 19 0 33,123 3 1 41,944 10 2 266,435 12 3 1924-1925.. .. 22,526 15 9 63,690 15 3 86,217 11 0 27,390 19 0 101,970 16 2 215,579 6 2 1925-1926.. .. 30,265 7 9 26,257 3 7 56,522 11 4 30,81119 2 23,665 13 8 111,000 4 2 1926-1927.. .. 27,913 18 1 45,418 12 4 73,332 10 5 1,58110 7 2,80118 9 77,715 19 9 1927-1928.. .. 15,942 15 4 51,500 10 5 67,503 5 9 10,740 8 2 49,604 6 11 127,848 0 10 1928-1929.. .. 7,959 7 3 43,312 14 4 51,272 1 7 11,89114 4 20,639 17 2 83,803 13 1 1929-1930.. .. 22,205 12 8 41,407 0 0 63,612 12 8 111,438 6 11 24,827 8 0 199,878 7 7 {_. - j I I
8.—6
XVII
Details of Assets included above. (Note : Stores or supplies in hand not included in assets.) Cash and Investments : — *Cash in the Public Account and in the hands of officers of the £ £ £ Government .. .. .. .. .. 1,620,370 {Less liabilities outstanding, 31st March, 1930 .. .. 1,771,988 Dr. 151,618 investment of cash balances .. .. . . . . .. 4,605,118. Reserve fund (securities at cost) .. .. . . 1,928,162 Post Office Savings-bank Reserve Fund .. .. .. 1,000,000 Bank of New Zealand shares (nominal value) .. .. .. 2,109,375 {Public Debt Redemption Fund .. .. .. .. .. 22,075,645 31,566,682 Sinking funds accrued— State Advances debt .. .. .. .. .. .. 1,879,061 State Coal-mines .. .. .. . . .. .. 7,944 Westport Harbour loans .. .. .. .. .. 256,039 Samoan loan .. .. .. .. .. .. .. 15,338 Nauru and Ocean Islands Sinking Fund Account . . .. .. 312 Electric Supply Sinking Fund Account .. .. .. .. 172,729 2,331,423 Loans and advances outstanding— Mining purposes .. .. .. .. .. .. 25,632 Local bodies (annuity value of interest receivable) .. .. .. 828,726 Samoan loan, less sinking fund .. .. .. .. .. 149,862 Repatriation advances outstanding. 31st March, 1930 .. .. 253,562 £ Discharged soldiers'mortgages and property held .. ..15,229,008 Less amount included in Public Debt Redemption Fund . . 10,850,000 4,379,008 State Advances —Mortgages and property held, less sinking funds and investments included elsewhere .. .. .. .. 38,278,284 General purposes relief —Advances outstanding .. .. .. 29,870 Rural Intermediate Credit Board —Advances outstanding .. .. 272,100 44,217,044 Revenue Earning and Trading Accounts— Railways (capital cost, including unopened lines and value of assets taken over from provinces, less capital written off 1929-30) .. 57,421,114 Telephones and Telegraphs (value of assets) .. .. .. 9,713,800 Electric-power supply and development (capital expenditure) .. 9,191,540 Westport Harbour-works (value of assets).. .. .. .. 514,580 Lighthouses and harbour-works (capital expenditure) .. .. 1,280,972 Tourist and health resorts (capital expenditure) .. .. .. 533,513 State coal-mines (value of assets) .. .. . . .. 258,933 Kauri-gum (trading capital) .. .. .. .. .. 16,300 Nauru and Ocean Islands (purchase price of rights).. . . .. 565,040 — 79,495,792 Lands and forests— Crown lands (estimated value, including settlement lands, Native lands, and education reserves) .. .. .. .. 29,101,735 Land-drainage schemes (capital invested) .. .. .. .. 1,951,670 Irrigation and water-supply (capital expenditure) .. .. .. 906,129 Waihou and Ohinemuri Rivers improvement (capital expenditure) . . 687,660 Lands improvement (capital expenditure) .. .. .. .. 591,723 New Zealand Reparation Estates (value of Dominion's interest) . . 733,600 Howard Estate .. .. .. .. .. .. 90,000 State forests (estimated value of forests, reserves, plantations, and nurseries) .. .. .. .. .. .. 38,081,814 72,144,331 Indirectly productive expenditure — Public buildings (including school buildings) .. .. .. 14,883,287 Roads (including roads on Crown lands and main highways). . . . 24,144,436 Quarries (acquisition and working) .. .. . . .. 5,418 Development of mining (capital expenditure) .. .. .. 881,325 Immigration (capital expenditure) .. .. .. .. 3,276,305 43,190,771 272,946,043
* Does not include trust, deposit, or sinking funds, or certain other accounts included elsewhere. t After deducting £35,170, credits due from other Governments, from the total liabilities. j Includes £10,850,000 previously included under discharged soldiers mortgages, and £11,225,645 of accumulated sinking funds.
iii—B. 6.
8.—6
XVIII
Table No. 21. PUBLIC DEBT. Statement showing Loans falling due in the next Seven Years, ending with the Year 1937, excluding Imperial Debt Repayments.
Table No. 22. PUBLIC DEBT. Statement of Half-yearly Instalments of Principal and Interest for Repayment of £27,532,164 advanced by the Imperial Government and funded in Terms of the Agreement dated 6th September, 1922.
i i ' ' 1 Year ending 31st March, I London. Australia. | New Zealand. , Totals. £ £ £ £ 1931 .. .. .. .. .. 59,400 21,229,016 21,288 416 1932 .. .. .. .. 200 333,900 6,987,306 7,321.406 1933 .. .. .. .. .. 411,350 5,148,193 5,559,543 1934 .. .. .. .. 12,900 52,000 17,170,265 17,235,165 1935 .. .. .. .. 37,000 1,275,000 1,848,900 3,160,900 1936 .. .. .. .. .. 248,400 4,716,960 4,965,360 1937 .. .. .. .. .. 110,300 7,104,840 7,215,140 Totals .. .. .. 50,100 2,490,350 64,205,480 66,745,930 I
Date Instalments paid. Interest. j Principal. ou'tst.a rid i n' ' £ I £ £ 1st December, 1922 .. .. .. 684,794 141,171 27,390,993 1st June, 1923 .. .. .. .. 681,282 144,683 27,246,310 1st December, 1923 .. .. .. 677,684 148,281 27,098,029 1st June, 1924 .. .. . 673,996 151,969 26,946,060 1st December, 1924 .. .. 670,216 355,749* 26,590,311 1st June, 1925 .. .. .. .. 661,367 164,598 26,425,713 1st December, 1925 .. .. .. 657,274 168,691 26,257,022 1st June, 1926 .. .. 653,078 172,887 26,084,135 1st December, 1926 .. .. .. 648,778 177,187 25,906,948 1st June, 1927 644,370 181,595 25,725,353 1st December, 1927 639,854 186,111 25,539,242 1st June, 1928 .. .. .. .. 635,225 190,740 25,348,502 1st December, 1928 .. .. .. 630,481 195,484 25,153,018 1st June, 1929 .. .. .. .. 625,618 200,346 24,952,672 1st December, 1929 .. .. .. 620,635 205,330 24,747,342 * Includes £200,000 paid off the Naval Defence Loan in terms of the clause by which New Zealand has the right, on giving three months' notioe, to repay at par any part of the principal.
B.—6.
XIX
Table No. 23. EDUCATION EXPENDITURE. Total Expenditure on Education out of Public Funds, including University, Primary, Secondary, and Higher Education, Technical and Special Schools, 1913-14 to 1929-30.
In addition, secondary schools and University colleges derive direct income (amounting for 1929-30 to £80,355) from reserves vested in them. The following amounts were also paid out of the Government Fire Insurance Fund for rebuilding school buildings destroyed by fire : — £ 1916-17 .. .. .. .. ..2,127 1917-18 .. .. .. ..2,658 1919-20 . . .. .. .. .. 15,682 1920-21 .. .. .. .. ..16,162 1921-22 .. .. .. .. 27,103 1922-23 .. .. .. 8,542 1923-24 . . , . . .. .. 12,490 1924-25 .. .. .. .32,829 1925-26 .. .. .. .. ..4,938 1926-27 .. .. .. .. 10,337 1927-28 .. 12,474 1928-29 .. ..12,197 1929-30 .. .. .. . 6,357
Loan-money: Erection Consolidated Fund. of School Buildings and Residences. _ Per Head of Year. Administra- Subsidies Total. Mean >5 ■ l -kaitional ■ Revenue T , Public Education opulaSpecial Endow- Vote, f xeachers w tion. Acts. ment cation, _ buper- , A , Salaries and ,eser a - annuation n ' ccoun . other Charges. Eund. £ £ £ £ £ £ £ ££s. d. 1913-14 .. 27,742 50,681 1,131,756 71,808 17,000 121,954 .. 1,420,941 1 5 3 1914-15 .. 26,128 55,139 1,207,983 70,802 17,000 122,940 .. 1,499,992 1 6 2 1915-16 .. 46,874 64,858 1,329,166 84,390 17,000 97,972 .. 1,640,260 i 8 6 1916-17 .. 58,408 60,180 1,406,264 90,535 17,000 70.367 .. 1,702,754 1 9 8 1917-18 .. 59,362 70.345 1,511,256 90,518 17,000 63,082 .. 1,811,563 1 11 5 1918-19 .. 57,716 76,177 1,602,995 92,095 43,000 115,656 .. 1,987,639 1 14 1 1919-20 .. 79,747 78,988 2,031,825 99,352 43,000 195,500 .. 2,528,412 2 1 10 1920-21 .. 101,972 70,313 2,460,116 100,758 43,000 244,722 214,571 3,235,452 2 11 8 1921-22 .. 96,217 71,737 2,580,562 105,448 43,000 2,469 563,411 3,462,844 2 13 10 1922-23 .. 90,393 66,610 2,514,991 112,378* 68,000 .. 361,976 3,214,348 2 9 0 1923-24 .. 96,506 77,788 2,604,508 116,808*68,000 .. 295,681 3,259,291 2 8 11 1924-25 .. 128,844 86,746 2,752,271f 118,973* 68,000 .. 462,212 3.617,046 2 13 2 1925-26 .. 111,389 87,512 2,854,719f 119,978* 70,952 .. 564,946 3,809,496 2 14 9 1926-27 .. 115,499 88,545 2,954,597f 119,073* 71,452 .. 550,954 3,900,120 2 14 11 1927-28 .. 127,289 90,518 2,974,615f 123,247* 71,497 .. 369,134 3,756,300 2 12 1 L928-29 .. 137,233 94,934 3,067,296| 127,444* 71,749 .. 375,423 3,874,079 2 13 1 1929-30 .. 140,561 87,420 3,193,828t 129,531*146,781 .. 428,764 4,126,885 2 15 10 * Net revenue after deducting expenses and cost of collection. t Excluding £25,000 for teachers' superannuation, included under that heading.
8.—6
XX
Table No. 24. PENSIONS. Statement of Amounts paid on account of Pensions for the Financial Years ended 31st March, 1926 to 1930.
Table No. 25. EXTERNAL TRADE. Statement showing Imposts and Exports of the Dominion in each Financial Year ended 31st March, 1922 to 1930.
By Authority: W. A. G. Skinner, Government Printer, Wellington.—l93o.
Year ended 31st March, 1926. 1927. I 1928. 1929. j 1930. £ £ £ £ £ War .. .. .. 1,179,552 1,122,741 1,146,955 1,178,646 1,204,422 Old-age* .. .. .. 901,256 979,296 1,007,722 1,059,039 1,105,069 Widows' .. .. .. 285,654 301,080 302,766 312,963 322,886 Miners' .. .. .. 40,204 41,947 45.083 48,102 51,676 Maori War .. .. .. 23,087 19,446 16,377 13,673 11,510 Epidemic .. .. .. 14,420 10,935 8,757 7,981 7,309 Civil Service Act, 1908 .. 16,767 16,724 13,206 12,192 10,547 Defence Act, 1909 .. .. 2,898 2,628 2,695 2,715 2,573 Judicature Act, 1908 .. 2,703 3,556 4,204 3,429 3,333 Police .. .. .. 552 406 457 671 789 Blind .. .. .. 8,040 10,304 12,249 13,339 14,716 Family Allowance .. .. .. .. 37,515 54,815 60,876 Sundry .. .. .. 5,022 5,945 6,273 5,698 6,589 Totals .. .. 2,480,155 2,515,008 2,604,259 2,713,263 2,802,295 * Includes payments of old-age pensions paid out of national-endowment revenue.
Year ended 31st March, j Imports. Exports. J Import^ £ £ £ £ 1922 .. .. .. .. 35,986,060 43,794,883 7,808,823 1923 .. .. .. .. 37,112,779 45,548,700 8,435,921 1924 .. .. .. .. 44,401,756 51,652,606 7,250,850 1925 .. .. .. .. 49,821,095 54,771,158 4,950,063 1926 .. .. .. .. 53,025,856 48,697,587 .. 4,328,269 1927 .. .. .. .. 48,192,670 45,682,338 .. 2,510,332 1928 .. .. .. .. 44,419,357 54,962,031 10,542,674 1929 .. .. .. .. 45,105,865 57,154,343 , 12,048,478 1930 .. .. .. .. 49,167,914 49,045,817 j .. 122,097 51,036,809 6,960,698 6,960,698 Totals .. •• 407,233,352 451,309,463 44,076,111
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Bibliographic details
FINANCIAL STATEMENT. (In Committee of Supply, 24th July, 1930.) BY THE HON. G. W. FORBES, MINISTER OF FINANCE., Appendix to the Journals of the House of Representatives, 1930 Session I, B-06
Word Count
31,976FINANCIAL STATEMENT. (In Committee of Supply, 24th July, 1930.) BY THE HON. G. W. FORBES, MINISTER OF FINANCE. Appendix to the Journals of the House of Representatives, 1930 Session I, B-06
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