Bigger Programme Of Capital Works

Press, Volume XCIX, Issue 29263, 22 July 1960, Page 13

Bigger Programme Of Capital Works

[From Ouf Parliamentary Reporter] WELLINGTON, July 21. Finance for a works and capital expenditure of £96.5 million—an increase of £11.5m on last year—would be met partly from an internal loan later in the year, and, if market conditions abroad were favourable, a small external loan, said the Minister of Finance (Mr Nordmeyer) when he presented his Budget this evening. How much, if any, it would be necessary to borrow overseas would depend on the extent to which the New Zealand public supported any further loan issue, he said.

"The proportion of capital expenditure which should be financed from taxation or from loans is frequently argued,” said the Minister. "The Government believes that, under existing circumstances, the proportion of Government capital expenditure financed from current revenue is approximately correct, if more loan moneys become available, however, the Government will examine the position and decide whether in the economic circumstances a higher proportion of works should be financed from loan moneys.” Details of the work and capital expenditure programme were given by Mr Nordmeyer as follows:

«(m.) Electricity .. .. .. 25.3 Land settlement .. 10.4 State house construction .. 12.4 Education buildings .. .. 9.0 Railway construction and improvements .. .. 7.4 Telecommunications .. 6.3 Forest development .. .. 23 National roads .. .. ILS Other works .. .. 5.0 899 Less working expenses from expenses from some votes 13.1 Works programme .. 76.8 Advances for— State Advances .. 18.0 Other requirements .. 1.7 Total .. .. £96.5 Various minor capital works provided for under Consolidated Fund votes were not included in the statement, he said. The amount of the appropriates for the capital programme exceeded last year’s appropriations by £ll5 million. Finance for the programme would be provided, as in previous years, partly from depreciation

reserves, from miscellaneous capital receipts and from revenue amounting to an estimated £32.6 million; from small savings, expected to provide £22 million this year; and from the recent cash loan which produced £15.1 million. The balance would be met by departmental investments and necessary loans.