Public Debt Rose £69m Last Year

Press, Volume CVI, Issue 31197, 22 October 1966, Page 3

Public Debt Rose £69m Last Year

(N'etc Zealand Press Association) WELLINGTON, October 21. The Minister of Finance (Mr Lake) said in Parliament today that the net increase in New Zealand’s overseas public debt—allowing for transfers from the London registry—was £l2 million for the year ended March 31 last.

In the same year the net increase from borrowing within New Zealand was £57 million.

Mrs E. I. Tombleson (Govt., Gisborne) had referred to a statement by Mr W. A. Fraser (Opp., St. Kilda) that the Gov. ernment was increaking the indebtedness of the country by approximately £1 million a week. Mrs Tombleson asked if this was a reflection of the rate of capital formation in the public sector economy. Mr Lake replied that the Government last year spent £lO6 million under its works programmes, and £29 million for capital advances to the Post Office, the State Advances Corporation, etc., making a total of £135 million.

“What would be the consequences of a drastic curtailment of that rate as is im-

plicitly advocated in other statements by Opposition members?” Mrs Tombleson asked. “The over-all rate of Government capital expenditure is about £2.75 million a week, financed by net borrowing of slightly more than £1 million a week,” said Mr Lake. “If a drastic curtailment were made in this rate of spending, it would be necessary to reduce capital expenditure on electricity development, housing, land settle, ment, education buildings, transportation, and telecommunications, and reduce New Zealand’s rate of growth.” Later Mr Lake said the cost of servicing New Zealand’s overseas debt for the year ended March 31, was £7.6 million, about 2 per cent of the country’s export income.