Reserves

Horowhenua Chronicle, 7 October 1931, Page 7

Reserves

Towards the balance I hope to obtain £350,000 by drawing still further upon reserves. As ny doubt honourable members are aware a large part of the ac ; cumulated surpluses of the Consolidated Fund from the war and post-war years was invested in discharged soldiers’ settlement mortgages repayable by instalments over a long period. These investments were constituted part of the Public Debt Redemption Fund, the interest on which goes to' the Consolidated Fund as a set off against the expenditure provided for under the repayment of the Public Debt Act. The £350,000 which it is proposed to take represents the repayments of principal by the mortgagors. That, it is estimated, will be available during this financial year. I may add that in view of the uncertainty of the whole revenue yield I propose to ask the House for legislation empowering me to abtai* further assitance from the discharged soldiers ’ settlement account. This may necessitate making special arrangements'* by hypothecation or otherwise for liquidating any amount that may be required over and above the £350,000 estimated to be available from the capital repayments. With this special provision in reserve I am hopeful that Budgetary stability can be maintained.