8.~2

VI

LOCAL FINANCE. The question of local finance has been again carefully considered during the recess, and the Government have thought it advisable to issue a circular to the local bodies asking for their opinion upon this subject, and also upon some important questions relating to the constitution of the County Councils and Hoad Boards. I shall shortly ask leave to introduce Bills to give effect to such alterations as the Government think necessary in the constitution of these highly useful local bodies, and also to make sufficient provision for their financial requirements. I do not propose to trouble the Committee with any particulars of the proposed Bills, as it will be more convenient to do so when the Bills themselves are under consideration. I ought, however, to say that the principles which the Government have taken for their guidance in preparing these measures are —first, that the local bodies should be left as free as possible from central control; second, that they should have conferred upon them all powers which can be advantageously exercised by such bodies; third, that their finances should be as distinct as possible from the colonial finances, and that their revenues should be sufficient. The necessity of dealing with this subject during the present session is admitted upon all sides. The question is not one which should be treated as a party question; and I venture to hope that the Government will receive the hearty support of both sides of the House in providing the country districts with the means of performing the important duties which have been imposed upon them of making and maintaining a large proportion of the roads of the colony. ESTIMATED EXPENDITURE FBOM OEDINAET BEVENUE, 1882-83. I now come, Sir, to the consideration of the estimated expenditure of the ordinary revenue for the current year. This may be conveniently divided— following the usual custom —into two parts, the Permanent Charges and Annual Appropriations. The Permanent Charges, amounting to £1,627,512, include pension payments under the Civil List and other Acts, and the large item of interest and sinking fund, which this year will amount to £1,554,848 : included in this, however, is the sum of £24,000 due for arrears of sinking fund upon the Imperial Guaranteed Loan of £1,000,000 of 1870, to which I have already referred. The total present annual charge upon our debt is therefore £1,530,848, and not £1,554,818, as might be supposed from a casual inspection of the accounts without this explanation. It must also be borne in mind that of this £1,554,848, no less a sum than £270,000, or nearly one-sixth, is for sinking fund; in other words, we shall pay this year £1,284,848 for interest, and £270,000 for redemption of debt. This point is often overlooked when we speak of the annual charge of our debt, but, as honorable members will see, it is one of some importance when we wish to ascertain exactly our financial position. The estimated annual appropriations for this year amount to £1,851,127. This shows an apparent increase upon last year's votes of £93,468. I say apparent, because the services for which a large portion of this extra £93,468 is required were paid for last year out of loan. Honorable members will find, on referring to the Public Accounts, that the votes for Militia and Volunteers, Police, and Constabulary for last year charged against the Consolidated Fund were only £142,015, whereas they are this year £214,009, a difference of £71,994, which previously was paid out of loan. This £71,994, then, is not an increase of proposed expenditure, but really the transfer of a charge from loan to consolidated revenue of what, I regret to say, is for the present necessary expenditure, although happily the cause for much of it is, as we believe, fast passing away. This transfer I am sure the Committee will approve, for although such expenditure, being temporary and extraordinary, may be considered a fair charge against loan, still it is very desirable to pay for such services out of revenue whenever the revenue will bear them, as is now the case. Of the balance of £21,474, £10,000 is for abatement of the rabbit nuisance, which last year was provided for in the Land Fund Estimates; the remainder may be said to be comprised chiefly of increased charges for working some newly-opened sections of railways, for exchange on remittances to London to pay interest, and for some necessary increases in the smaller salaries of civil servants. I have been thus particular, Mr. Hamlin, in

Table No. 7.