109

On motion of Lieutenant-Colonel Hulme it
was ordered that the following members be
appointed a Sub-committee—

Mr. Merriman,
Mr. Barstow,
Lieut.-Colonel Hulme,
Major Matson, and
Mr. Kempthorne, for the purpose of
preparing a Memorial on the subject.

The Governor laid on the table a Bill for
the appropriation of the Revenue for 1849-50.
Bill ordered to be printed.

His Excellency then read the following
“Financial Minutes,” which on motion of Mr.
Kempthorne was ordered to be printed.

Gentlemen of the Legislative Council,—In laying
before you the Estimates of the probable expenditure
of the Province of New Ulster for the year 1850-51, I
feel much satisfaction in congratulating you upon the
steady increase which, for the last few years the reve-
nue of this province has continued to make in each
successive year, as also upon the fact that the reven-
ue and expenditure are now so nearly equalized, that
here is every probability that within a very moderate
period of time, the revenue will amply suffice to de-
fray all the legitimate expenses of the Civil Govern-
ment.

The various amounts of expenditure which it is
proposed to incur upon account of the several services
stated in the Estimates, will be so fully discussed by
the Council when in Committee, that I shall upon the
present occasion refrain from troubling you with these
details, and shall confine myself to directing your at-
tention to those general principles on which it is pro-
posed to conduct the financial policy of the Govern-
ment, an acquaintance with which appears essential to
enable you to afford me your advice and assistance in
reference to the details contained in the Estimates,
when these are brought under your consideration.

You are aware that the revenues of these islands
are derived principally from duties of customs,
which are imposed upon all imported articles which
are actually retained in New Zealand for the purpose
of consumption in the country. These duties consist
at present of certain fixed duties upon spirits and
tobacco, and of ad valorem duties upon all other
articles.

It was necessary, in the first instance, to adopt the
system of ad valorem duties, in order that the expe-
rience of a few years might establish the average
quantity and value of each description of goods which
was likely to be annually consumed in these markets,
and that the Government might thus be furnished with
the necessary data for calculating what amount of paid
duty should be imposed upon each article, with a view
to raising in the whole a revenue adequate to the re-
quirements of these colonies.

Although it was clear that the system of ad valorem
duties, was not one likely for any lengthened period of
time to be satisfactory to the community, yet for the
reasons I have above stated and for others, it would
not only have been difficult in the first instance, to have
introduced a complete system of fixed duties, but I
think that even for some time to come, such a system
cannot be introduced in a complete form. Indeed
many years must probably elapse before the necessary
warehouses and conveniences for the storing and ex-
amination of goods, which would form a necessary
part of such a system of fixed duties can be established
in many of the ports of these islands.

I have, however, always felt that it would be desira-
ble at the earliest possible period to replace the pre-
sent ad valorem duties, by fixed duties of customs, to
as great an extent as was practicable, and then from
time to time to extend such a system of fixed duties, as
the circumstances of the Colony would admit of such
extension. With this view a Schedule of fixed duties
which it was proposed to levy on certain articles was
by my directions some time since proposed for the
consideration of the Government of the Province of
New Munster, and since this Council has been assem-
bled for the despatch of business, I have received a re-
port of a committee of the Provincial Legislative
Council of that Province upon this subject, which re-
port I have directed to be laid on the table for your
information, as it is my intention at a future period, to
take steps for proposing to the Legislature, such a
change in the mode of collecting the revenue as I have
above indicated, but such a proceeding on the part of
the Government would I think rather have the effect
of increasing the amount of revenue raised, than of re-
ducing it below the amount at which it has been esti-
mated.

I now proceed to make such remarks upon the pro-
posed appropriation of the revenue for the year 1850-
51 as will probably be useful to the Council.

In the first place you will observe that those sala-
ries of public officers which have hitherto been usually
charged upon the Parliamentary Grant, are now stated
as a charge upon the revenues of the Province. This
arrangement appeared to be necessary because the aid
afforded by the British Parliament for the purpose of
defraying the salaries of officers was only temporarily
so afforded, and it therefore appeared to be desirable at
the first fitting opportunity to carry out the intentions
of Parliament by relieving Great Britain of these
charges, and because the Parliamentary Grant was
made in aid of the revenues of the whole of New
Zealand, and there appeared no reason why this Grant
should be appropriated to paying the salaries of the Civil
Officers of one Province, rather than the correspond-
ing salaries of officers of another Province.

In reference, however, to those officers who left
Great Britain under a specific agreement as to the
rate of salary they were to receive, I have felt it to be
my duty to have their salaries borne upon the present
estimates, at the rate which was specified when they
took office, without any reference to the amount of sa-
lary paid to the officers of corresponding rank in the
Province of New Munster. But in the case of the
Colonial Secretary, who was appointed in this colony,
I have felt it to be my duty to have his salary placed
upon the estimates at the same amount which would
under the existing state of things be paid to the Colo-
nial Secretary of a Province if he were recently ap-
pointed. I cannot, however, but feel that there would
be a great degree of apparent hardship in placing the
senior officer of the Government, in so unequal a po-
sition in reference to other officers, and in making so
large a reduction in the salary of a Government offi-
cer after nearly six years of most faithful and uninterrupted
service, and if the Council under these circumstances
think proper to make this a peculiar case, I shall very
gladly assent to such a proceeding. I think that the
general rule would be that officers’ salaries should
commence at a stipulated amount, and then up to a
fixed limit, increase at a certain rate for so many
years service. Neither the revenue nor the
establishments of the Government have
hitherto assumed a sufficiently permanent and
satisfactory form to enable me to propose, with
any confidence, a plan of this nature for the conside-
ration of Her Majesty’s Government; but if the Coun-
cil should think proper in this instance to establish
the principle, that the salaries of the Colonial Sec-
retary, and the superior officers of Government, should
increase at a certain rate for each year’s service, I will
endeavour to prepare and submit for the consideration
of the Lords of the Treasury, a general plan for the
adoption of a similar principle for the whole Govern-
ment establishment.

No appropriation has yet been made of the Civil
L’s, which has been placed at the disposal of the
Crown; the Council will therefore find that no refer-
ence to the Civil List has been made in the estimates.
I felt unwilling to recommend any such appropriation
of the Civil List, until the future form of the Institu-
tions to be conferred upon this country had been
definitely arranged, and until some subsidiary ques-
tions connected with them (such, for example, as the
question I have just raised for the consideration of the
Council) had been completely adjusted.

The Council will observe that the sum of £202 has
been placed upon the Estimates as the probable cost of
the maintenance of the Government schooner “Albert.”