THE FINANCIAL STATEMENT.

Gisborne Times, Volume VII, Issue 468, 9 July 1902, Page 2

THE FINANCIAL STATEMENT.

RECORD REVENUE AND EX- j PENDITURE. ] THE DUKE'S VISIT COSTS .£87,000. 1 Wellington, last night. Tho Financial Statement was presented to the Houso this afternoon by the ActingColonial Treasurer, Sir Joseph Ward. It referred first of all to tho absence from tho colony of the Premier, and then went on to state that the year hud been an eventful one for the Empire. The South African war had been ended upon torrns satisfuctoy to all parts of tho British dominions, and tho gouerous consideration of our former foes would hasten tho time when they would forget tho bitterness of the struggle, and become loyal and oontoutod subjects. lieferonco was made to the disappointment foil throughout tho colonies on tho postponement of tho Coronation ceremony, and the wish was expressed that His Majesty would soon bo convalescent. There had beeu no very remarkable occurrence to chronicle in our own colony during the year, and its position, whether viewed from agricultural, pastoral, or commercial eido, was a mattor for congratulation. Our advantages in soil and climate was great, and wo had much to bo thankful for in our immunity from drought. Yot thero was much to be done, especially for settlors in tho back blocks, but tho development that had already taken placo testilied to tho energy and industry of our people, and gave proimso of bettor things to come. The statemont continued : Tho revenue propor last yoar exceeded six millions, tho highest in tho history of the colony. Tho actual ligures are £0,053,070 Is 6d, or £234,151 in excess of the estimate, and £200,301 9s Od in excess of the rovenuo received during tho year ended March, 1901. This had boon obtained not only without extra taxation, but in spito of largo concessions mado in tho Customs dues, in railway rates and fares, and in tho adoption of the penny postago. Such expansion, I think, is satisfactory ovidoncc that our people are prosperous, and trado is flourishing. The Customs oxceeded the estimate by £91,116, and railways by £109,488, and notwithstanding tho gift to tho colony of the penny postago stamp (which includes the postal rovenuo) by £5171. The only head of revenuo which did not como up to estimate was territorial revenue, which was £20,380 undor estimate, and £20,584 less than the amount received during tho provious yoar. This was accounted for by tho falling-oil of roceipts from cash land sales. Tho receipts from all sources reached £6,152,849 Is, as compared with £5,906,916 3s 8d of the previous year. The expenditure last year was abnormally large, reaching £5,895,914 12s 2d, or £416,211 2s lOd in excess of tho oxponditure of the year 1900-1, but £2,787 7s lOd within the estimates of the year to which the expenditure relates. Tho principal increases in expenditure included increase of interest and sinking fund £58,323, but this must bo expected as long as it is necessary to raise loans for carrying out public works. Tho old ago ponsions cost £10,861 more than the preceding year. It is, however, in the annual appropriations that the large increase is to bo found. In tho Colonial Secretary’s department the expenditure increased from £10,055 to £229,717, giving an excess of £119,162, mado up principally of tho cost of the visit of tho Duke and Duchess of Cornwall and York, Imperial regiments, and costs incidental thereto, which may bo set down at £87,000. The taking of the census also increased the expenditure by £IB,OOO, und the increased volume of Parliamentary and departmental work caused tho printing and stationery department to draw upon us for £4OOO extra. In the Department of the PostmasterGeneral an increase of £47,453 is to be found, arising from tho continued general expansion of the postal and telegraphic businoss, and the additional cost involved by tho introduction of penny postage. Our national system of education is answerable for an increase of £57,579, the resuit of increased grants in torrns of the amended scale brought into force last year. In the department administered by the Minister of Agriculture the expenditure increased by £26,408, the purchase of land for experimental farms and erection of necessary buildings thereon, and cost of up keep involved a large expenditure. These farms are, however, doing very good work, and it will not bo long boforo they are self-supporting. Tho passing of the Slaughtering and Inspection Act, 1900, necessitated tho engagement of additional veterinarians and assistants, and a considerable sum was required to bo expended in the purchase and importation of stud horses and cattle. My own Department of Works and Railways, I notice, is answerable for an increase of £135,839 over last year’s figures. This additional expense had to be incurred in order to cope with very largely increased traffic, to meet which some 445,000 extra train miles had to be run. The visit of the Royal party, and safety of the Royal guests while travelling on the railway lines, necessitated heavy extra outlay. Twenty-three miles of new lines were added, and many additional train facilities were introduced for the comfort and convenience of travellers.

The balance brought forward to commence the year amounted to £532,564, and the excess of revenue over expenditure for tbe twelve months was £256,924, making a total of £789,488. From the latter amount, they had to deduct tbe transfer of £500,000 to the Public Works Fund, and the sum of £19.000 for debentures redeemed, leaving £270,488 as a surplus at tbe close of the year, whieh I am sure members will consider satisfactorv.

We received during tbe year the sum of £1,000,513 19s 2d from the sale of debentures under the Authorising Act of 1900, and £1,052,666 13s 4d from the sale of stock and debentures issued under the Act of 1901, besides the half-million transferred from the Consolidated l'und. Monies amounting to £1,615 12s 2d were received in connection with the Ellesmere and Forsyth Reclamation and Akaroa Reclamation Trust. These figures added to the balance brought forward at the commencement of the year amount to £232,515 18s Id, and produce available ways and means for the year of £2,797,312. The ordinary expenditure amounted to £2,143,252 14s 9d. Two hundred thousand pounds in respect of advanced money during the- preceding year were paid off, thus leaving a balance in the fund at the close of the year of £454,059 Bs, which will be supplemented by the balance of the million loan to be received during the current year. Settlement had advanced satisfactorily during the year, and the new Native Land Acts promised to have beneficial results in this direction. The great difficulty of extending roads into the more inaccessible portions of the c-olony tended to limit the actual area taken up and occupied. Every effort was being made to reserve forests and beautiful scenery in the colony. Information has been obtained as to tbe 1 area of remaining forests suitable for mill- 1 ing purposes. A rough estimate has been I taade of the quantity of kauri and other ]

timbers in Auckland, Poverty Bay, and Westland district, which though more satisfactory than provious estimates, point to the conclusion that in a comparatively lew years the great natural resources of tiie colony represented in its real wealth of forest will fall lamentably short of requirements. In consequence, the Government have in contemplation a large expansion of tree-planting operations, and it is fortunate that we possess a large area of land in the central districts of the North Island, which, though not well adapted for agricultural and pastoral purposes, is believed as the result of trial plantings to be wc.l suited to the growth of vast forests of specially - Sjkotcd and valuablo trees.

Although wo have not been successful in preventing tho occurrence of plague in the colony, yot I am glad to say the Healtli authorities have in each instance been able to eirc he tho sphere of action of these casi otliing in the nature of an epiden. .ken place. The Tourist Depa. t, brought into existence last February, had done good work. It is estimated that £215,000 will bo sufficient to meet all claims this year for old ago pensions. Attention is drawn to the necessity of guarding against imposition on the part of thoso who act for natives. Tho revision of land values has beeu continued during the year, and ns n rosuJt of tho year's work I anticipate a further increase of £12,000 in the land tax receipts. The activity of tho land market and tho prices readily obtainable for land in most of the districts of tho colony justify tho opinion expressed last year that the land tax rovenuo would increase year by year until the valuations were finished. Tho Loans to Local Bodies Act had been taken free advantage of, tho oppor. tunity of securing loans at the low rate of per cent., including sinking fund, being seized upon by local bodies. The total amount of dobentuvos created and carried into tho account was £1,744,100, and tho total disbursements have been to local bodies £1,347,028, to Lands and Survoy Department £314,335, and to Publio Works Fund £89,800.

THE PUBLIC DEBT. The gross public debt on tho 81st oi March, 1901, was L 49,091,245, and on tho 31st March last it was L 52.906.449, or an iuereaso of L 3,375,202 for tho year. Tho not public dobt on the 31st March, 1901, was L 48,557,751, and on tho 81st of March last it was L 51,837,621, or an ineroaso of £3,279,880 for tho year. Tho figuros for tho year wero abnormally incroased by tho million really bolongiug to tho preceding year's transactions, and by tho necessity for providing monoy to pay for the purchaso of lands acquired under tho Lanl for Settlement Consolidation Act, 1900. These two parcols of loan monoys amount to L 1,897,150. Reducing this amount by L 350.009, representing tho oxcoss loan money for Land Settlements purchaßO, tho ineroaso may bo sot down at a littlo over L 1,800,000. It cannot bo too of ton emphasised that wo must take into consideration that our national dobt is uddod to ovory yoar by loans which aro of a diroctly remunerative character and that tho interest payablo in rcßpoct of thorn is immediately rocouped, and is not made a burdon upon the taxpayers. In this connection L 500.000 of loan was obtained for tho Advances to Sottlers Offico, L 213.000 for Loans to Local Bodies, L 897.100 to acquire Lands for Close Settlements, und L 8935 for doposits in our Now Zealand Consols. Thoso loans, which do not imposo a burdon on the taxpayer, amounted to no loss a sura than L 1,619,285. “ Tho Aid to Public Works and Land Settlement Act, 1901,” authorised tho raising of L 1,250,00, of which one million wore raised in London. With regard to tho remaining L 250.000, my colleague was advised to oiler it for Treasury over counter sales at 4 pot cent, making tho currency threo years. This mothod of issue proved very popular, and was availed up to tho oxtent of thirty allocations, extending over a poriod of five months, as in tho caso of the local half million loan, issued undor tho Act of 1900. Reference was made to tho increased gold exports, tho yoar 1901 being tho highest since 1873. Upon the subject of trado with South Africa the report stated that thero waß evory reason to boliove that tho contract for a very satisfactory sorvico will be signed almost immediately, and arrangements are being mado by which a weekly report of priccß current for produco in London will be cabled diroct to tho Department of Industries and Commerce. These reports will, on receipt, bo promptly circulated throughout the colony. Tho Houso will bo asked to mako provision this session for tho appointment of three trado representatives, ono in South Africa, one in Great Britain, and one in Australia. Their services can also be availed of for the purpose of helping tho tourist traffic to our colony, particularly from England and Australia. Substantial progress has been mado with tho several railway construction works in hand during the late financial year, the expenditure thereon having been groater than for many years past. Tho expenditure during last year practically absorbed tho whole amount voted for tho purpose, tho unexpended balance on the vote being only £Bl3. I am not aware of any precedent for the expenditure on railway construction so closely approximating to tho amount voted for the purpose. The Statement deals at great length with a comparison of the rates by road and railway, and tho great advantage of the latter in the matter of promoting settlement. Tho great concessions that had been giveD on the railway in the mattor of freights and passenger rates were also emphasised. With regard io tho mortgago tax, I am glad to state that it,is our intontion to concedo a reduction of twenty-five per

cent., which will be equal to L25,00G, I trust that hon. members will recogniso that this abatement is a very substantial abatement towards the end which I have just indicated by reductions. It is with a great deal of pleasure that I intimate that tbe Government has decided to make further reductions this year on wool, freights, and passenger fares, also in rates for small lots of dairy produce, butter, cheese, eggs, bacon, poultry, and honey, in the minimum of artificial manures from 30 cwt. to 5 cwt., and in the extension of the period of free return of stud horses, cattle, and sheep. These concessions represent in round figures a reduction m rates of at least L 40,000 per annum, the chief direction that the passenger reductions will take will bo for long distance fares.

In order to assist settlement, it is proposed to introduce a Bill this session providing that in all future disposal of bush lands on settlement conditions the selector, upon payment of the first half-year's rent, will not be called upon to make further payments of rent for the period of from two to four years of their leases, according to the expense of clearing, the rents remitted being capitalised and interest charged thereon for a period of ten years from the date the rent became payable. The export of dairy produce is steadily increasing, and it is pleasing to note that the quality is acknowledged by the trade to be amongst the best imported into Great Britain. The frozen meat market has been fairly good. Prices for wool have been extremely low, and considerable losses have resulted to exporters, but lately there is a decided upward tendency in the market.

The harvest was a wet one, and in one or two localities portions of the crops were damaged. Prices, however, are good, which will help to make up for the loss in quantity. The export of poultry to South Africa is new, and with a direct steamer service, should increase to considerable dimensions.

A FORECAST. With regard to the prospects of the year 1902-3 the Statement continued: The total estimated expenditure out of our ordinary revenue account is set down at £5,987,033, which is £91,149 in excess of last year's expenditure, and £88,361 more than last year’s estimate. I anticipate a revenue for the year ending 31st March next of £6,026,000, to which has to be added proceeds of debentures authorised to be raised by the Consolidated Stock Act 1884 amounting to L 57,500 issued against the accretions of ttaking fund. The figures will give total receipts amounting to L 6,083,500, and compared with similar receipts last year amounting to L6j110,070, are tsatisfactorv, I have placed the Customs duties, which wili ho

neatly L 19.000 in excess of last year’s rovonuo. Tho trade of the colony is keeping up woll, and it must not bo lost sight of that the value of crossbred wool hus appreciably increased, and that tho prices of dairy and agricultural produco arc exceptionally good and likely to continue so. Tho estimated rovonuo is .£270,000 less than tho actual rovonuo last year, but is L 187.000 more than tho total ostiinutcd rovonuo for tho preceding year. LOAN OF £1,750,000. Our rovonuo is buoyant and increasing, arid can easily boar the strain of furthor intorest charges without in any way imposing further taxation upon tho poopleUndcr those circumstances, tho Govern luont havo docidod to ask tho authority o Parliament for a loan of L 1,750,000, to bt allocated as follows: For tho constructior and completion of Trunk and othor lino! of railway, L 750,000 ; for tho constructior of roads, t' - -,. . id bridges, L 45,000; foi tho cost ot . ..icnal railage, stock, and tho relaying c permanent way, L 550.000 ; for tho purposo of developing tho goldfields, L 5000; for telegraph extension, LSOOO ; total, L 1,050,000. Tho expenditure will bo more than justified by tho beneficial results to our colonists, which must ensue. I am confident that all will agroo with mo in saying that tho best interests of tho country can be protoctcd by tho exorcise of a judiciously progressive policy. Such a policy as will make provision for tho construction of roads in tho interior, pushing forward our railways (particularly tho trunk linos), by assisting tho mining, agricultural, and othor groat industries, so as to onsuro tho highest possible return to tho individuals engaged in them, and thoreby adding to tho financial resources of the public exchequer. If ono and all will approach tho many-sided questions which are over presenting themselves for solution in a reasonable manner, I foel Mrtnih that as the years go by the properly directed efforts of our people will result in bettering tho condition of thomsolvos and promoting the general woll-being of our colony.