8.—6.

BUDGETARY PROPOSALS. I come now to proposals embodied in the estimates of the Consolidated Fund for the current financial year. Dealing firstly with the expenditure, the estimates show a net increase of £95,000 over last year's expenditure under Permanent Appropriations. There is an increase of £405,000 in the amount for highways, but this merely reflects the estimated increase in the corresponding revenue item. Against this increase there is a saving of £87,000 in debt charges, £138,000 in exchange, and £87,000 under Other Special Acts, the latter being due mostly to the fact that the final payment to complete New Zealand's contribution of £1,000,000 towards the Singapore base was made last financial year. Concerning debt charges, I may say that as a result of conversion operations there is a net decrease of £189,000 in interest, partly offset by increases for debt repayment. Under the departmental votes provision is made for expending this year £4,817,000 more than was spent last year. When honourable members receive the estimates shortly they will be able to see for themselves the items for which additional money is to be provided. I will, however, indicate the votes principally concerned. The cost to the Consolidated Fund of the restoration of salaries and wages in the Public Service as from Ist July last is approximately £470,000, of which £197,000 is reflected in the lower estimate of the revenue item for railway interest, the balance, £278,000, being included in the Consolidated Fund votes. In dealing with the Public Works programme, I indicated that the vote for Maintenance of Works and Services is to be increased by £1,037,000. This large increase is mainly due to provision of £308,000 for aerodromes and £400,000 for other works that will be financed partly out of revenue and partly out of loanmoney, In addition, there is £97,000 for restoration of flood damage and £170,000 for plant, material, and services, an item hitherto provided for out of the Public Works Fund. An extra £204,000 is to be provided under vote " Lands and Survey," mostly for the purpose of paying standard wages to the men engaged in land-development work under the Small Farms Scheme. Following this course will obviate overloading the properties with capital charges. For similar reasons the wage cost of the Native land development schemes is to be provided out of vote '' Native," with the result that a comparative increase of £233,000 is shown for this vote. It will also be seen that an additional £250,000 has been provided for Defence. Of this amount £190,000 is on account of Naval Defence, due to the fact that larger cruisers are to be taken over, while £60,000 additional is for strengthening our Land and Air Defences, particularly the latter. The additional amount for Naval Defence is offset to the extent of £100,000 by the fact that no contribution toward the Singapore base is required this year. Concerning marine affairs, I have already mentioned the installation of radio beacons and a re-survey of the coast-line. In addition a number of lighthouses where transport arrangements are now rather primitive will be fitted with oil-engined winches and rope haulage to lessen the present arduous labour of handling stores. Another matter for which provision is made is a reorganization of the Fisheries Branch of the Marine Department. Henceforth a continuous statistical record of the industry is to be kept, as it is not possible to regulate the industry intelligently without knowing the amount of fishing that is going on and the quantities and kinds of fish that are landed. Improved equipment for the control of fishinggrounds is also contemplated. The Government also proposes to take over fresh-water fish research work now in the hands of a Committee of the Acclimatization Societies, and this research work will later be extended to salt-water fish. Under the Employment Promotion Act the administration of unemployment taxation is vested in the Commissioner of Taxes. Largely on this account vote " Land and Income Tax " shows an increase of £68,000. It is not proposed to recoup vote " Labour " for the cost of administering the Employment Promotion Fund. Thus, the whole of the revenue of the Fund will be

Consolidated Fund expenditure.

Permanent Appropriations.

Departmental votes.

Restoration of cuts in salaries and wages.

Expenditure on capital works.

Land development costs.

Defence.

Lighthouses, &c.

Reorganization of fishing industry and research work.

Employment administration.

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