NEW ZEALAND'S PUBLIC DEBT

NZ Truth, Issue 1063, 8 April 1926, Page 9

NEW ZEALAND'S PUBLIC DEBT

V , (By "Fiat Lux.") An inquiry has been received from a correspondent for information concerning New Zealand's. public debt.. - _' ■ On March 31, 1 1925, the gross debt of the Government of New Zealand was £227,814,000, equal to £165 2s 11d per head of the population, including Maoris and Europeans. , . • Against this sum, however, there was to be set off accumulated sinking funds" of £13,462,000, which reduce the "national debt, to £214,287,000, equal to £155 per head. ".,,./., This national debt of nearly 228 millions does not include local, body ' loans, which totalled, on March 31, 1924, over 47 millions, equal to almost £35 per head of the population. n Adding these figures together, the amazing gross total of 275 millions is obtained; and on the population of the Dominion is over £200 per head. : ■ ■• •■'. ; Regarding this huge debt, it must always be borne m mind that a very large proportion is invested m directly productive works, such as railways, telegraphs, telephones, lighthouses/ harbors (Westport), State coal mines, hydro-electric generating schemes; advances to workers, loans to local bodies, and Bank of New Zealand shares. . . These actually account for £109,719,000, whilst of balance of £118,094,000 the Great War was responsible for £76,631,000, roads and bridges absorbed £12,327,000, public buildings account for £9,516,000, and even the Maori wars ijan away with, £3,600,000. ■ Taking a brief survey, then, of these details,v it ,is evident that there is still a stern .undercurrent of warning:. against further:- big •loan . orgies. The time is overdue, for. the inauguration -of an intense economy ■ campaign m personal, commercial, ' and local and general government 1 ;> NeW Zealand ' is a very 'young country, an.d, 'naturally, requires; large sums of overseas capital adequately ; and: remuneratively to develop its - natural resources, but ■ "th'i couhtry cannotymakethat progress which it is entitled to make if it carries on under^a crushing burden of public, debt. ' ■ :.,:•/ ■■' \ ■ .■■'■■. ■ :: -'> S '•/■-■ ;^:-: !V - l - ; -;.■-. -' ; '-;..v v ; ' ; v' ; \"