8.—6

XXVII

ESTIMATED SURPLUS FOR THE CURRENT YEAR. I estimate that there will be a surplus for the year 1917-18 of £1,200,098, made up as follows: — £ Estimated revenue, 1917-18 .. .. 17,282,800 Estimated expenditure .. .. £15,382,702 Estimate for supplementary estimates 700,000 16,082,702 Balance .. .. .. £1,200,098 THE YEAR'S OPERATIONS. For the convenience of honourable members I summarize the most important items relating to the financial operations for the past year : — Successful flotation of £10,000,000 for war purposes. Of this sum, £11,000,000 subscribed within the Dominion; approximate cost, one-half of one per cent. Investments in London increased to £7,000,000. Redemptions and renewals effected amounting to £1,859,040. Completion of conversion scheme by which £2,133,000 converted into long-dated securities. Net surplus of the year's revenue, £4,308,777. Public-works expenditure reduced to £1,278,922. Income-tax receipts increased by £2,870,007. Post Office Savings-bank deposits increased by £3,436,844. Twenty-five settlements purchased for discharged soldiers, making a total area of 337,961 acres thrown open and available for settlement. £62,421 authorized for soldier-settlers by way of financial assistance. 6,530 war pensions granted to 31st March, 1917, representing an annual value of £342,195. Total payments to producers for supplies purchased on behalf of the Imperial Government, £27,819,116. Record collection of Customs and excise revenue —over £4,000,000. Short-dated securities to Imperial Government for war advances converted into long-dated securities. Gross war expenditure to 30th June, 1917, £28,439,912. PROPOSALS. I also place in concise form the new proposals submitted to honourable members :— Additional provision for remissions of rent to members of Expeditionary Forces and discharged soldiers on the land. Increased borrowing-powers under the Discharged Soldiers Settlement Act, 1915. Provide for borrowing an additional £24,000,000 for war purposes. Provide for loan of £750,000 for public-works expenditure, including £250,000 for telegraph-extension. Provide additional taxation on persons failing to subscribe to war loans according to means. Provide £2,000,000 for employment of discharged soldiers. Substitution of a progressive land-tax for ordinary and graduated taxes. Abolition of excess-profits tax and increase of income-tax on a progressive scale. Special war-tax to be levied on incomes at increased schedule rates. Provision for inscribing loans in New Zealand. Portion of loan to be available for payment of death duties. Amusement-tax. Continuation of war bonus to State employees. Increased old-age, military, widows', and miners' pensions. Additional allowances to soldiers' dependants. Increase in Customs and excise duties.