8.—6

VII

sent, owing to the demand upon our funds, we have not been able to give to the public the boon such a cheap rate of postage would confer. It is pleasing to be able to announce that, on and after the Ist day of January, 1901, a penny-postage system will be established within and without the colony. This colony will therefore be the first in Australasia to have a universal penny postage. I estimate that the loss of revenue by so doing will be about £80,000 per annum ; but this will only be of a temporary nature, for there will be an increase in the correspondence which will in time bring up the revenue to the original level. The loss to the revenue during the unexpired portion of the present financial year will be about £20,000. FINANCIAL YEAE 1900-1901. Having given honourable members a running commentary upon the transactions of the past year, it is now time for them to learn something of our finances for the current year. I have already mentioned that they must not be surprised to hear that the estimates I shall have the pleasure to place before them have increased in volume and amount; but I can assure them they have been carefully scrutinised, and the votes asked for, although large, are required to meet necessary expenditure. The total estimated expenditure out of the Consolidated Fund amounts to £5,441,523, as against the actual cost of last year, which reached £5,140,128. Last year the appropriations, including the amounts voted in the supplementary estimates, totalled to £5,203,701. Our figures for this year are therefore £301,395 in excess of the actual expenditure, and £237,822 in excess of the estimates of last year. The principal items showing the increases have been previously referred to, but it is not out of place to give them here in detail: Old-age pensions, £200,000; contingents for South Africa, £95,000; harbour defences, £14,000; defence forces, £149,141; Ottawa and India contributions, £10,134; public health, £5,300 ; education, general and technical, £462,643; lands and surveys, £140,659. In addition to these, however, there are the interest and sinking fund, £22,591, and the natural increases arising from an increasing population, and in the endeavour of the Government to provide greater comforts and facilities for our colonists, such as are given by the Education Department, at an increased cost of £26,339 ; and the Postal and Telegraph Department, £18,696. The increase of population is also, unfortunately, primarily responsible for an increase of £5,643 in the Justice Department, £20,624 in the Lunacy and Charitable Department, and £3,157 in the Police Department. The increased revenues derived from Customs and Marine find a corresponding necessity for increased expenditure to the amount of £10,045, and for the same reason I am asking for an increase of £6,733 for working railways, after making most liberal concessions to the public. The small increases of £3,479 and £5,553 respectively to the Mines Department and for public and school buildings are absolutely necessary. Turning now to the revenue side, and notwithstanding the reductions I am recommending should be made in the Customs tariff, and the concessions by the Working Railways Department, and the loss by adopting the penny postage, I am informed by the several departments that we can look forward to a total revenue for the year of £5,463,000, including the receipts from the sale of debentures for sinking-fund increases. This revenue is £167,786 less than was received last year, but is £163,000 more than was estimated for that year. The proposed concessions in the receipts from Customs, stamps, and railways produce a decrease in their relative revenues as against last year's receipts of £84,567, £5,898, and £61,613 respectively. Territorial revenue also shows a falling-off to the amount of £22,229, and registration and marine revenues to the extent of £1,993. The increases are few—namely, £2,544 from land- and income-tax, £2,708 from beer duty, £862 from miscellaneous, and £2,400 from the sinking-fund debentures.