THE PUBLIC DEBT

Hawke's Bay Tribune, Volume I, Issue 16, 31 December 1910, Page 9

THE PUBLIC DEBT

HOW IT IS TO BE WIPED OUT

NO EXTRA BURDEN ON THE PEOPLE. | . , I Speaking of the last session of i Parliament, the Prime Minister (Sir Joseph Ward) on Wednesday morning remarked to an “Auckland Star” representative upon the important character of the work done. “After my long experience of Parliamentary life,” said Sir Joseph, “I have no hesitation in saying that the session of 1910 stands out most prominently, and the legislation passed will prove to be of fie greatest value to the people of this Dominion as a whole. No attempt has been made by those opposed to the Government to controvert ibis assertion, and attempts at adve-se criticism in other quarters lias not amounted to more than general’sation.”

Referring to the provision made last session for the redemption of our loans, past, present, and future, under the Public Debt Extinction Act, Sir Joseph said the proposal was to wipe out the existing nublic debt within 75 years, and to repay all future loans within 75 years of their being raised. At the time of passing the Act, the Public Debt for which no sinking fund existed amounted to 63 millions. To-| day provision exists for the repayment of the whole of it. All that will be required to he set aside for this purpose annually is £140,590. Moreover, tlial £is invested every year in loans to local bodies. So settlers, ami to worker'. So that | the sinking fund, wlm.-k :s’m in-; mt! aside to provide for the repayment ■ of loans, will serve a double pm'- | pose. On every fresh mil'rnn bor- i vowed after the passing of the Pub-' lie Debt Extinction Act, it is provided that a yearly payment of £2230 is to be made automatically to the sinking fund.

“Anyone of any ordinary experience will agree with me.” added the Prime Minister, “that the additional amount of £2.230 for each million will, in the ordinary course, create contributions to the revenue that will more than make up tin’s amount, without providing for any extra taxation to do so. In this way the total amount of the sinking funds for the extinction of loans will not be felt by the people at all. and New Zealand will be placed in a position in respect to its loans far superior to any other country that I know of. Provision has been made that no portion of the sinking funds —past, present or future--shall be invested in Government securities, so that the whole system will be in such a position as to make it absolutely responsible for any of the money io be 'collared’ (to use an expression heard so much of lately) by any Minister of Finance of the day. The whole of the sinking funds will be under the control and management of a board, and the general provisions of the ‘Act will be carried out impartially, and will be entirely removed from anyt possibility of political influence'.”