8.--2

1880. NEW ZEALAND.

FINANCIAL STATEMENT (In Committee of Ways and Means, Tuesday, 8th June, 1880) BY THE COLONIAL TREASURER, THE HONORABLE MAJOR ATKINSON.

Mr. Seymour,— When in November last I had the honor to submit for the consideration of this Committee the usual Einancial Statement, it was thought by many persons not unfriendly to the Government that in estimating the probable deficit for which it would be necessary to make provision by the Ist April last at £800,000, I had taken a far too gloomy view of our financial position. I regret to say that my anticipations in this respect have been more than realized, and that the financial results of the last nine months have proved even less satisfactory than I ventured to predict as probable. I, for one, have not the least doubt that the present check to our prosperity—a check which has been felt at the same time throughout the civilized world —is temporary only; yet, bearing in mind the effect this check, and other causes which we might have controlled, have had on our finances, and also the amount of our public debt as compared with our population, the duty of economy and retrenchment has become clearer and more pressing. It is therefore gratifying to know that the plain facts of our financial position, which I had the honor to submit to Parliament last session, have fully awakened public attention to this vital subject, and have produced in the public mind a determination that the annual expenditure shall be brought within the annual revenue, by reducing the one as far as is compatible with efficiency, and, if necessary, increasing the other so far as may be needed. The Government propose, Sir, to ask Parliament to give practical effect to this determination. My task, therefore, this evening, considering the extravagant habits into which we have fallen of late years, is one of unusual difficulty, in the execution of which I venture to hope for at least as large a measure of consideration as the Committee have so kindly extended to me upon former occasions. Sir, in submitting the financial proposals of the Government in the last Budget, I said that it would " be impossible to surmount our monetary difficulties and escape the dangers of our position without something like a complete remodelling of our finance, both general and local, without careful administration by Ministers, and without the exercise of much thrift and self-denial on the part of all classes of the community." In accordance with the opinion so expressed, certain measures were introduced by the Government and passed by the House last session, modifying very considerably our fiscal system, but leaving untouched our system of local taxation and subsidies. Upon this subject I said, "The important question of local finance is far too large to go into this session ; therefore I will say no more upon the subject now, except, Sir, that the Government fully recognize the fact that it is their duty to submit to this House, upon its first meeting next session, a scheme which shall place local finance on a satisfactory and something like a I—B. 2.