DOMINION FINANCE.

Gisborne Times, Volume XXVII, Issue 2657, 12 November 1909, Page 3

DOMINION FINANCE.

DETAILS FROM THE STATEMENT.,

In presenting the Finanical Statement Sir Joseph .Ward saicl: I now sum up the position in connection with the additional taxation that I have alluded to under the several headings as follows: Graduated Income tax £BO,OOO, Death duties £150,000, Long Distance Passenger Rates £IOO,OOO, "one per cent, temporary increase upon Customs' , £50,000; bank s additional taxation, £30,000; racing clubs, 21 per cent, on total receipts, £23.000; total £448,000. Expenditure: Additional to provide for £330,000, balance for unseen expenditure £1.1.8,000. FINANCE 1909-10. I now come to the question of ways and means of the ordinary revenue account for the current financial year. In the first place you will require to know how much more expenditure there is likely to be, and then the amount of revenue I anticipate to receive to meet such expenditure. The expenditure for present year is estimated at £9,015,878, as against an actual expenditure last year of £8,785,531. The permanent charges snow an increase of £292,767, while the ordinary departmental expenditure shows a decrease of £48,257. Dealing first with the permanent charges, a large additional expenditure arises principally from the charges for interest which has t<> be provided iv,r by the new loans recently raised under the Permanent Acts. An additional expenditure of £150,820 is anticipated, of which £67,000 is to meet charges against the residue set aside in respect of National endowments, land for education, and old age pensions, £60,000 for naval defence, and> £25,000 for subsidy and endowments to local authorities provided for by Acts of Parliament. Amounts required! for departmental votes are stated at £5,513,081, or £48,275 less than the actual amount of last year. In respect of the increases the Post and Tele graph Department is responsible for £61,351, of which £58,000 is for salaries consequent on increases of salaries provided for by the Post and Telegraph 'Classification Act and the absorbment of the Old Age Pensions office by that department. The railway estimate exceeds the actual expenditure of last year hv £23,192, hut having regard to the increased mileage of line that will have to'be worked during the whole of the current year the estimated expenditure is equal to a saving of £80,315. The Education Department asks for an increase of £25,296, the necessity for which must be expected so long as settlement keeps on increasing and education has to he provided for. The Defence Department shows an increase of £6933 for additional capitation and ammunition, and the Native Department £2735, making the total increases £119,507, against which the decreases an the other classes of expenditure amount to £167,782 brought about by amalgamation, retrenchments, and non-recurring charges on revenue. The estimated revenue for the current year is set down to produce £9,020,000, or £18,815 more than the actual of last year. Dealing first with the revenue derived from Customs I anticipate that the importation during the current year may bo somewhat restricted owing to the tightness of the money market and the tendency on the part of merchants to carry only sufficient stock to meet current requirements. This tightness is passings a way. and the increased prices now obtained for onr chief product (wool) should materially brighten prospects. The population of New Zealand has increased by 31158 persons of whom 1 14261 represent excess of immigration over emigration andrthe increase should to some extent increase the revenue. Traders who have been holding hack from importing are now confronted with depleted stocks, large quantities of merchandise are on the way out or, are under order. Under these circumstances I think it is safe to estimate our, customs revenue for current year at £216,300, or £171.248 less than the previous year. As to railway revenue my colleague the. Minister of Railways, aiter giving all due consideration, estimates the railway revenue at £3,050,000 and the expenditure at £2,143,500. This will leave a net revenue of £906,500. The extension of the suburban area and the computation of thoroughfares on combined ordinary and suburban rates, in the same manner as adopted in computing the charges for conveyance of goods has decreased the gross receipts from passengers to an appreciable extent, similarly the reduction made in the rate for road metal which under the old rate was carried at jyi unremunerativo rate has detrimentally affected revenue derived from that source, and therefore it is not advisable to estimate more than an amount .set down above. The beer duty is stated at £lll.OOO, a slight decrease on the actual figures of last year, which may be consequent on the increase of No-license .areas Arising, from results of last local option poll. The land tax estimate of £625,000 is based on the understanding that, the 25 per cent, additional graduated tax to be calculated under Section 53 of the Land and Income Tax Assessment Act 1908, owing to numerous subdivisions of property liable graduated tax also will be sustained, but should be made up by increase of valuations in districts revised on 31st March* last. As regards the decrease in the esti-mate-for income tax, .1 have ; .to explain that as assessments for this year will be on returns of the income of the year ending 31st March 1909, I have deemed it 1 prudent to take into consideration the comparative depression that existed during that period and I do not think it wise to count on revenue from that source of more than £300,000 as compared with the actual collection of £321,044 for last year. It is true that trade has already shown a revival, bat the income tax revenue will not benefit by this until next financial year. Registration and fees show a decrease of "£24,000 as last years revenue included a receipt of £23,500. poll tax from Chinese immigration which cannot be expected this year in view of the educational test now insisted upon. The results I have now placed before you are the estimates of expenditure and revenue for the current financial year, and I will proceed to set down, the estimated., results at the close of the year. Balance brought’ forward from last year £184.321, add the estimated revenue £9,020,000, deduct the estimated expenditure £9,015,878, leaving a surplus of £188,443 at the close of the year, subject, of course, ■ to provision being made for items on supplementary estimates and public works. The balance at credit .on public works fund on 31st .March last was £388,709,: to be augmented by balance of 1906 loan not raised amounting to £50,000, making a total for- ways and means available at that elate of £433,<09. During the short session it was found necessary to ask Parliament for authority to raise a loan of £125,000 ! for public works, purposes. This amount will only he sufficient at the existing rate of expenditure to carry us on till end of December. Our requirements cannot stop on reaching 31st March, so that.wo must provide to carry on for six months

beyond that date, and for that reason I obtained authority for'another million which will enable the construction of public works so necessary for the development of the country to proceed up to the end of September, when further funds can he provided for by Parliament if required. The position of the fund may therefore he- set forth as follows: Balance 81st March, I‘JO'J, £383,709; balance loan, 1908, £60,000; loan authorised by Finance Act, 1909, £1,250.000; loan authorised this session £1,000,000; for IS months’ expenditure £2,683,709. REVIVAL OF TRADE. The trade financial stringency wL::. has prevailed throughout the world during the year may happily be regarded as a thing of the past. A great revival of business throughout the world to which the price of our staple products has promptly responded and the general tone of confidence in commercial circles gives abundant reason for predicting that the tide of renewed prosperity is flowing and that before long the wealth of New Zealand will be materially augmented. Wool lias risen to a satisfactory figure. The pram of frozen meat has advanced and will, I hope, on and' reach its normal level. Flax shows an upward tendency which competent critics are satisfied will be maintained. Wheat is high and butter and cheese are finding a. ready market. Equally satisfactory is that well-known barometer of trade, the post and telegraph revenue, which has a rapidly rising tendency, the results for the first 6 months of the ji-ar showing a 'large excess over the corresponding (period of 1908. The enormous resources of the Dominion wit h a judicious expenditure of capital in their will in time 1 make her a much greater member of the imperial sisterhood. That our resources will be developed by the sturdy settler is clearly evinced by the landhunger which was so conspicuously demonstrated recently. The men, who are most competent to form an estimate of the potential possibilities of the land of their birth and adoption, are willing to face hardships inseparable from a life spent at the frontiers of civilisation. I am sure the hope of ultimate reward which they confidently expect will crown their efforts and the prosperity of the Dominion will so be* brought about not by gloomy forebodings, but by faith in the future and by a determination to meet and overcome the difficulties which may beset the way of the .people, aimed by the desire to advance the interests of their country. I could march shoulder to shoulder irrespective of political creed and relegate the carping criticism to the unknown. The conclusion I have placed before you is of great moment, the importance of which I u:n sure will be recognised by, you all by giving effect to the proposals that it has been my duty to propose, and the financial position will be .enormously strengthened. Ido not think it is wise for this country to continue borrowing annually for public works to the extent that it has been doing, and if the proposals outlined are given effect to we should meet with, I hope, an early increase in the revenue from the customs, and be able to set aside at least £500,000 per annum after the altered taxation has been in full operation for a year. To that extent the future borrowing for the 'purpose of carrying on the. necessary work for the leveiopnient of the country can be reduced. '1 he prospects before u.s are brighter, than they have been for some time, and with care and economy exercised both privately and publicly, the efforts of our people to improve their own pu.vtion, thus at the same time improving the position of the Dominion a' uhole, must insure success. I have the greatest confidence in our future and the fact of our having passed thicngli a somewhat difficult period wul, f feel sure, stimulate our people to greater exertions and will certainly enable them to show that a temporary set back is not going to deter them from continuing the excellent tradition that up to now has been the brigh-ost characteristic of the people of this l.< niinioll‘ DOMINION STATISTICS.

An error appeared in yesterday s issue under this head in regard to the value of railways The correct figures are: —Capital value of i and rolling stock in 1891, £ls 208,3,4; value in 1909, £29,052 432; increase, £13,844,Q05.