8.—6

V

IXOOME-TAX. £ The estimate for the year was . . . . . . 300,000 Actual collection . . . . . . . . . 316,835 (living an increase over estimate ol .. . . 16,835 The collection for 1908-9 was .. .. .. 321,044 For 1909-10 .. . . . . .. .. 316,835 1909-10 is therefore less than 1908-9 by . . . . £4,209 Having regard, therefore, to the comparative depression in trade during the year ending 31st March, 1909, which is the period for which the returns were made on which the income-tax for 1909-10 was charged, the above results must be considered very satisfactory. The percentage of expenditure to receipts <>! land and income tax revenue is collected in this Dominion at a very low cost: — Land-tax . . . . . . . . . . 3'll per cent. Income-tax .. .. .. ..I*B7 ~ Both taxes .. .. .. .. 2*70 LOANS TO LOCAL BODIES. The old s\ stem of the granting of loans by tin . Treasury under tbe authority of the Minister of Finance was superseded by the legislation of Inst year giving wider and more extended powers of lending to local bodies. When that Legislation was passed loans had been granted to some local bodies and no part of the loan was paid over. I consider that relief should be given in such cases. A Bill to enable such loans to be granted under the old system where they had previously been authorised, without fresh proceedings being necessary, will be introduced, to enable such loans to be "ranted by the Treasury. The total amount paid to local bodies last year was £245,357. Particulars will be found in the accounts submitted. THE PUBLIC DEBT. On the 31st March last the gross public debt stood at £62.168.407. This will show a reduction as compared with the previous year, but it in necessary to state that this is due to the transfer of £12,247,238 to the State-guaranteed Advances Department under the New Zealand State-guaranteed Advances Act of last session, being the amounts secured by assets under the Land for Settlement Acts—advances to settlers and workers, which arc not to be shown a> pari oi the Dominion's public debt, but are nevertheless an indirect liability, which are yearly being reduced by sinking funds provided against each of the loans, as well as an improving asset, from the fact that the annual repayments are yearly increasing the margin of what was the original security. During the year Loan-moneys or advances amounting to £3,554,938 were received. This amount was made up as follows : For £ Public works . . . . . . . . . . 1,950,225 Hutt Railway and Road .. .. .. .. 52,590 Duplication of lines . . . . . . . . 76.500 Lands tor settlement . . . . . . . . I 69.4Nf> Loans to local bodies . . . . . . . . 325,000 Advances to settlers . . . . . . . . 585,000 Advances to workers . . . . . . . . 300,000 State coal-mines . . . . . . . . 30,000 Scenery-preservation . . . . . . . . 10,000 New Zealand Consols . . . . . . . . 9,078 Increase by conversions . . . . . . . . 47,060 £3,554,938