PUBLIC ACCOUNTS FOR THE FINANCIAL YEAR 1940-1941. PART III. PREPARED BY THE TREASURY DEPARTMENT. CERTIFIED TO BY THE CONTROLLER AND AUDITOR-GENERAL. ALSO STATEMENT SHOWING THE PUBLIC DEBT OF THE DOMINION AS ON THE 31st MARCH, 1941.

Appendix to the Journals of the House of Representatives, 1941 Session I, B-01-part03

B.—l [Pt. Ill]

1941. NEW ZEALAND.

PUBLIC ACCOUNTS FOR THE FINANCIAL YEAR 1940-1941. PART III. PREPARED BY THE TREASURY DEPARTMENT. CERTIFIED TO BY THE CONTROLLER AND AUDITOR-GENERAL. ALSO STATEMENT SHOWING THE PUBLIC DEBT OF THE DOMINION AS ON THE 31st MARCH, 1941.

I—B, 1 [PT. Illj

B.—l [PT. Ill].

CONTENTS.

PAGE TABLE I.—THE PUBLIC DEBT OS" NEW ZEALAND OUTSTANDING ON 31ST MARCH, 1941 .. 3 TABLE lI.—STATEMENT OF ADVANCES BY THE RESERVE BANK TO THE GOVERNMENT BY WAY OF OVERDRAFT OUTSTANDING ON 31ST MARCH, 1941 .. .. 9 TABLE lII.—STATEMENT OF LOANS GUARANTEED BY THE GOVERNMENT .. . 10 TABLE IV.—STATEMENT OF THE PUBLIC DEBT FUNDED IN TERMS OF SECTION 8 OF THE FINANCE ACT, 1922 .. .. .. .. .. .. .. .. 11 TABLE V.—STATEMENT OF SINKING FUNDS ACCRUED TO THE 31ST MARCH, 1941 .. 12 TABLE VI.—STATEMENT OF RECEIPTS AND DISBURSEMENTS OF THE SINKING FUNDS DURING THE FINANCIAL YEAR ENDED 31ST MARCH, 1941 .. 12 TABLE VII.—STATEMENT OF TRANSACTIONS IN CONNECTION WITH THE PUBLIC DEBT IN THE YEAR ENDED 31st MARCH, 1941 .. .. .. .. .. 14 TABLE VIII.—STATEMENT, AS AT 31ST MARCH, 1941, SHOWING ANALYSIS OP THE PUBLIC DEBT ACCORDING TO THE EXPENDITURE APPEARING IN THE DEPARTMENTAL BALANCE-SHEETS PREPARED IN TERMS OF SECTION 57 OF THE FINANCE ACT, 1932 .. .. ... .. .. .. .. .. 15

2

B. —1 [PT. Ill].

PUBLIC ACCOUNTS, 1940-1941.

THE PUBLIC DEBT OF NEW ZEALAND. TABLE I.—STATEMENT OF SECURITIES CHARGED ON THE PUBLIC REVENUES OF NEW ZEALAND AND OUTSTANDING ON 31st MARCH, 1941.

3

Annual Charge. Domicile of Principal. Nominal ' ; — Amount Due Date. Remarks. outstanding. j © J Interest When payable. New Zealand. London. Australia. j As I New Zealand Loans Act, 1932: — £ s. d. % £ £ s. d. £ s. d. £ Debentures and Stock .. .. 1,415 0 0 Various. .. .. .. 1,415 0 0 .. .. Unpresented. 600 0 0 1 Sept., 1937 5£ 33 1 Mar. and 1 Sept. i 600 0 0 .. ~) 2,000 0 0 15 Nov., 1938 4£ 90 15 May „ 15 Nov. 2,000 0 0 .. .. [Subject to conversion under New 200 0 0 20 April, 1939 4£ 9 20 April „ 20 Oct. 200 0 0 .. .. f Zealand Debt Conversion Act. 5 0 0 15 Dec., 1940 4£ .. 15 June ,, 15 Dec. 5 0 0 . . .. J 10,300 0 0 1 July, 1941 4f 464 1 Jan. „ 1 July .. .. 10,300 4,613,505 0 0 15 July, 1941* 3 138,405 15 Jan. „ 15 July 4,613,505 0 0 .. .. * Repayable at the option of the Government at par on or after 15th July, 1939, on three months' notice. 7,000 0 0 1 Aug., 1941 4| 315 1 Feb. „ 1 Aug. .. 7,000 3,001,015 0 0 15 Nov., 1941f 3f 112,538 15 May „ 15 Nov. 3,001,015 0 0 .. .. f Repayable at the option of the Government at par on or after 15th November, 1938, on three months' notice. 37,000 0 0 1 Mar., 1942 4 1,480 1 Mar. „ 1 Sept. 37,000 0 0 1 Feb., 1943 .. .. .. .. .. .. Option to repay £10,884,628 maturing 1st February, 1963. 15 Feb., 1943 .. .. .. .. . . .. Option to repay £9,840,855 maturing 15th February, 1946. 1,383,010 0 Of 15 Mar., 1943§ 48,405 15 Mar. and 15 Sept. 1,383,010 0 0 .. .. {Securities converted under New 12,275,950 0 0 15 Mar., 1943§ 4 491,038 15 Mar. „ 15 Sept. 12,275,950 0 0 .. .. Zealand Debt Conversion Act, 1932-33, with condition of interest free of income-tax continued up to the interest date coinciding with or next following the pre-conversion maturity date, after which the rate of interest is automatically adjusted to 4 per cent., on the loth September, 1941. § Repayable at the option of the Government at par on or after 15th March, 1940, on three ; months' notice. Carried forward ..121,332,000 0 0 .. .. 792,777 .. 21,314,700 0 0 .. 17,300 I

THE PUBLIC DEBT OF NEW ZEALAND. TABLE I.—STATEMENT OF SECURITIES CHARGED ON THE PUBLIC REVENUES OF NEW ZEALAND AND OUTSTANDING ON 31st MARCH, 1941—continue d.

B.—l rp T . Hl].

PUBLIC ACCOUNTS, 19 40-194 1.

4

Annual Charge. Domicile of Principal. Nominal TT " ~— j — ~~ : : — Amount Due Date. o ® _ Remarks. outstanding. ©g j When payable. New Zealand London. Australia. i r : , £ s. d. % £ £ s. d. £ s. d. ; £ Brought forward .. 21,332,000 0 0 .. .. 792,777 .. 21,314,700 0 0 .. ; 17,300 New Zealand Loans Act, 1932 —continued • Debentures and Stock —continued. 7,339,656 4 9 1 Mar., 1944 330,284 1 Mar. and 1 Sept. .. 7,339,656 4 9 12,588,700 0 0 1 Jan., 1940-5* 3| 440,605 1 Jan. „ 1 July j .. 12,588,700 0 0 * The stock will be redeemed by I ; | purchases at or under par exclu- j • | sive of accrued interest or by halfyearly drawings at par, in sums I of £100, commencing 1st July, 1940. The New Zealand Govern- I ment have undertaken to repay i by instalments as set out below : I the whole of this issue by 1st j January, 1945 : In the year ending 31st December, 1940, £2,000,000; 1941, £3,500,000; | 1942, £3,500.000; 1943,£3, 500,000; 1944, £3,500,000. These instal- j ments will be made available by j two equal payments in each year j on or before the 30th June and the 31st December respectively, commencing 30th June, 1940. \ During the periods 5th to 20th | June and 5th to 20th December j in each year commencing in 1940, i holders of stock, including holders | of stock drawn in accordance with the above provisions, will have the option of converting such stock in sums of £100 as to onehalf into New Zealand Government per cent, stock, 19491954, and as to one- half into New 1 Zealand Government per cent. | stock, 1955-1960, at rates to be published from time to time. 199,500 0 0 15 Feb., 1945 5 9,975 15 Feb. „ 15 Aug. .. 199,500 0 0 7,580,907 11 10 1 Mar., 1945 U 341,141 1 Mar. „ 1 Sept. .. 7,580,907 11 10 259,025 0 0 15 Mar., 1945 4" 10,361 15 Mar. „ 15 Sept, 259,025 0 0 .. .. 9,659,980 1 ! 1 April, 1945 3 289,799 1 April „ 1 Oct. 2,500 o 0 9,657,480 1 1 75,455 17 0 30 June, 1945 3 2,264 30 June „ 31 Dec. 75,455 17 0 .. 865,510 0 0 15 July, 1945 3 25,965 15 Jan. „ 15 July | 865,510 0 0 .= .. Carried forward .. 59,900,734 14 8j J.. 2,243,171 | 22,517,190 17 0 37,366,243 17 8 17,300 !_ : i 1 !_ j

THE PUBLIC DEBT OF NEW ZEALAND. TABLE I.—STATEMENT OF SECURITIES CHARGED ON THE PUBLIC REVENUES OF NEW ZEALAND AND OUTSTANDING ON 31st MARCH, 1941-continued.

B.—l [Pt. Ill].

PUBLIC ACCOUNTS, 1 940-1941.

5

Annual Charge. Domicile of Principal. Nominal j ■ ! Amount Due Date. "8! I ! • 1 Remarks. outstanding. „ 2 . Nominal i-S Interest When payable. New Zealand. London. Australia, , r £ s. d. % £ £ s. d. £ s. d. £ Brought forward .. 59,900,734 14 8 .. .. 2,243,171 .. 22,517,190 17 0 37,366,243 17 8 17,300 New Zealand Loans Act, 1932 —continued. Debentures and Stock continued. 2,090,909 1 9 1 Dee., 1945* 4* 94,090+ 1 June and 1 Dee. .. 2,090,909 1 9 .. * Repayable at the option of the Government on or after 1st December, 1925, by giving three months' notice in the London Gazette. t Interest suspended in terms of agree- __ ment vrith Imperial Government. 12,886,110 3 9 1 Jan., 1946 5 644,305 1 Jan. „ 1 July .. 12,886,110 3 9 9,840,855 0 0 15 Feb., 19464. 4 393,634 15 Feb, „ 15 Aug. 9,840,855 0 0 .. .. J Repayable at the option of the Government at par on or after 15th February, 1943, on three , months' notice. 1,233,743 9 0 1 April, 1946 3 37,012 1 April „ 1 Oct. 1,233,743 9 0 424,148 10 0 1 April, 1946§ 4 16,966 1 April „ 1 Oct. 424,148 10 0 .. .. § Repayable at option of the holders on 14 days' notice. April, 1946 .. .. .. .. .. .. Option to repay £8,963,205 maturing _ _ 15th April, 1949. 2,851,050 0 0 15 Sept., 1947 4 114,042 15 Mar. and 15 Sept. 2,851,050 0 0 1,330,500 0 0 15 Sep., 1947 5 66,525 15 Mar. „ 15 Sept. 1,127,200 0 0 120,000 0 0 83,300 11,221,608 16 5 1 Nov., 1947 4J 504,972 1 May „ 1 Nov. .. 11,221,608 16 5 1 Mar., 1948 . . .. .. .. .. .. Option to repay £19,225,465 matur- j . ing 1st March, 1958. 4,996,690 0 0 30 Nov., 1948 4 199,868 31 May and 30 Nov. 4,996,690 0 0 10,500 0 0 1 Jan., 1949 4 420 1 Jan. „ 1 July 10,500 0 0 Feb., 1949 .. . . .. .. .. .. Option to repay £5,791,201 maturing 1st February, 1954. 8,963,205 0 0 15 April, 1949] j 4 358,528 15 April and 15 Oct. 8,963,205 0 0 .. .. [[ Repayable at the option of the Government at par on or. after 15th April, 1946, on three months' notice. -May, 1949 .. . . .. . .. .. Option to repay £776,125 3§ per cent, and £11,707,980 4 per cent, securities maturing 15th Mav, 1952. 7,500,000 0 0 15 Dec., 1949 5 375,000 15 June and 15 Dec. .. 7,500,000 0 0 250,000 0 0 15 Dec., 1950 3| 8,750 15 June „ 15 Dec. 250,000 0 0 2,029,000 0 0 1 Feb.. 1951 5£ 111,595 1 Feb. „ 1 Aug. .. 1,250,000 0 0 779,000 Carried forward .. 125,529,054 15 7 .. .. 5,168,878 .. 52,214,582 16 0 72,434,871 19 7 ~879,600

THE PUBLIC DEBT OF NEW ZEALAND. TABLE I.—STATEMENT OF SECURITIES CHARGED ON THE PUBLIC REVENUES OF NEW ZEALAND AND OUTSTANDING ON 31st MARCH, 1941—continued.

B.—l [PT. Ill].

PUBLIC ACCOUNTS, 1940-1941

6

! ~ Annual Charge. Domicile of Principal. Nominal . ~~ i i _ , Amount Due Date. «g"S • Remarks. outstanding. © £ When payable. New Zealand. London. Australia. _ > +5 interest. £ s. d. | % £ £ s. d. £ s. d. £ Brought forward .. 125,529,054 15 7 .. .. 5,168,878 .. 52,214,582 16 0 72,434,871 19 7 879,600 New Zealand Loans Act, 1932 Del>entur<» Mid Stock—continued. 776,125 0 0* 15 May, 1952 1 3i 27,164 15 May and 15 Nov. 776,125 0 0 .. .. * Securities converted under New 11 707,980 0 0 15 May, 1952| 4 468,319 ' 15 May „ 15 Nov. 11,707,980 0 0 .. .. Zealand Debt Conversion Act, 1932-33, with condition of interest free of income-tax continued up to the interest date coinciding with or next following the pre-conversion maturity date, after which the rate of interest is automatically adjusted to 4 per cent., as follows: £23,225, 15th May, 1941; £752,900, 15th November, 1941 : total, £776,125. j f Repayable at the option of the Government at par on or after 15th Ma} 7 , 1949, on three months' j notice. 15 June, 1952 .. • - • • .. Option to repay £9,498,775 maturing 15th June, 1955. ] July, 1952 | . - • • • ... j Option to repay £12,000,000 maturing 1st July, 1955. 15 Jan., 1953 .. .. .. •• •• Option to repay £9,115,989 12&. 4d. maturing 15th January, 1957. ! 9,282,606 19 2 1 Oct. 1953 % .. 1 April and 1 Oct. 9,282,606 19 2 .. 1 {This stock is non-interest bearing to 1st October 1943. Thereafter per cent, per annum will be ( | paid to 1st October. 1953. 5,791,201 0 0 1 Feb., 1954§ 3| 202,692 1 Feb. „ 1 Aug. .. 5,791,201 0 0 .. § Repayable at the option of the Government at par on or after 1st February, i949, on three months' notice. 31 May, 1954 . . .. .. .. .. .. Option to repay £5,538,110 maturing 31st May, 1958. 9,498,775 0 0 15 June, 1955 1| 4 379,951 15 June and 15 Dec. 9,498,775 0 0 .. i [| Repayable at the option of the Government at par on or after 15th June, 1952, on three months' notice. 12,000,000 0 0 1 July, 3 360,000 1 Jan. „ 1 July 12,000,000 0 0 .. at the optiou of the Government at par on or after 1st July, 1952, on three months' notice. 15 Oct., 1955 .. .. •• -• j Option to repay £4,780,301 maturing 15th October. 1960. Carried forward .. 174,585,742 14 9 . - .. 6,607,004 83,480,069 15 2 90,226,072 19 7 879,600 j

B.—l TPt. 1111.

PUBLIC ACCOUNTS, 1940-1941.

THE PUBLIC DEBT OF NEW ZEALAND. TABLE I.—STATEMENT OF SECURITIES CHARGED ON THE PUBLIC REVENUES OF NEW ZEALAND AND OUTSTANDING ON 31st MARCH, 1941—continued.

7

Annual Charge. Domicile of Principal. Nominal — ; - — Amount Due Date. j I 1 p pm; irk« outstanding. Nominal ! "S-2 Interest When payable. New Zealand. London. Australia. Ss £ s. d. £ £ s d £ s d £ Brought forward .. 174,585,742 14 9 .. ° 6,607,004 .. 83,480,069 15 2 90,226,072 19 7 879,600 New Zealand Loans Act, 1932 —continued. Debentures and Stock —continued. 362,450 0 Oj 1 Jan., 1956 3 10,873 1 Jan. and 1 July 362,450 0 0 100,000 0 0 | 1 Jan., 1956 4 4,000 1 Jan. „ 1 July 100,000 0 0 !! !! j J an » 1956 .. .. .. ., _ _ _ _ Option to repay £1,696,780 matur■v I ing 15th January, 1959. 1 Nov., 1956 .... .. .. .. ., Option to repay £5,000,000 maturr. 11 - non T .. , i ing 1st-November, 1971. , o,989 lw 4 : 15 Jan., 19o/' 319,060 15 Jan. and 15 July 9,115,989 12 4 .. .. * Repayable at the option of the Government at par on or after 15th January, 1953, or aree i n- r,r r, i months' notice. 1,41/, 000 0 0 1 15 Jan., 1957 2£ 35,425 15 Jan. „ 15 Julv 1,417,000 0 0 46,900 0 0 15 Jan., 1957 3 1,407 15 Jail. „ 15 July 34,000 0 0 12,900 0 0 1,080,384 14 11 15 Jan., 1957 3| | 37,813 15 Jan. „ 15 July 1,080,384 14 11 93,720 0 0 1 Feb., 1957 3 2,812 1 Feb. „ 1 Aug. 93,720 0 0 1,417,000 0 0.15 May, 1957 2J [ 35,425 15 May ,. 15 Nov. 1,417,000 0 0 5,769,753 13 7 15 May, 1957 3 173,093 15 May „ 15 Nov. 5,769,753 13 7 1,395,086 0 0 15 May, 1957 3| [ 48,828 15 May „ 15 Nov. 1,395,086 0 0 1,417,000 0 Oj 15 Aug., 1957 2$ 35,425 15 Feb. „ 15 Aug. 1,417,000 0 0 5,171,932 14 Oj 15 Aug., 1957 3 155,158 15 Feb. „ 15 Aug. 5,171,932 14 0 2,122,260 0 0i 15 Aug., 1957 4 , 84,890 15 Feb. „ 15 Aug. 2,122,260 0 0 1,417,000 0 Oj 15 Feb., 1958 2£ i 35,425 15 Feb. „ 15 Aug. 1,417,000 0 0 2,189,835 3 8 j 15 Feb., 1958 3| 76,644 15 Feb. „ 15 Aug. 2,189,835 3 8 19,215,465 0 0 : 1 Mar., 1958f 4£ | 865,146 1 Mar. „ 1 Sept. .. 19,225,465 0 0 .. f Repayable at the option of the Government at par on or after 1st March, 1948. on three months' 5,538,110 0 0 31 May, 1958 J 4 221,524 31 May „ 30 Nov. 5,538,110 0 0 .. .. {Repayable at thfe option of the Government at par on or after 31st May, 1954, on three months' notice. 1,417,000 0 0| 15 June, 1958 2£ I 35,425 15 June „ 15 Dec. 1,417,000 0 0 1,521,250 0 0| 15 June, 1958 3 A 53,243 15 June „ 15 Dec. 1,521,250 0 0 1,417,000 0 0 j 15 Sept., 1958 2| 35,425 15 Mar. „ 15 Sept. 1,417,000 0 0 1,261,400 0 Oj 15 Sept., 1958 3J 44,149 15 Mar. „ 15 Sept. 1,261,400 0 0 2,842,000 0 0 15 Dec., 1958 2J j 71,050 15 June „ 15 Dec. 2,842,000 0 0 12,676,598 7 6 1 15 Dec., 1958 3 j 380,298 15 June „ 15 Dee. 12,676,598 7 6 1,696,780 0 0 | 15 Jan., 19o9§ 3J : 55,145 15 Jan. „ 15 July 1,696,780 0 0 .. .. § Repayable at the option of the ( Government at par at any time on or after the 15th January, 1956, on three months' notice in i :r-n <*a - o „ ,» the New Zealand Gazette. 1,170,245 18 7 ] lo Mar., 1959 3 35,107 15 Mar. „ 15 Sept. 1,170,245 18 7 1,572,260 0 0 15 Mar., 1959 3J 55,029 15 Mar. „ 15 Sept. 1,572,260 0 0 630,640 0 0 15 Mar., 1959 4 25,226 15 Mar. „ 15 Sept. .630,640 0 0 2,980,679 0 0 15 July, 1959 3 89,420 15 Jan. „ 15 July 2,980,679 0 0 380,000 0 0 15 July, 1959 3| 14,250 15 Jan. „ 15 July 380,000 0 0 Carried forward .. 262,031,482 19 4 .. .. 9,643,719 .. 151,687,444 19 9 109,464,437 19 7 879,600

THE PUBLIC DEBT OF NEW ZEALAND. TABLE I.—STATEMENT OF SECURITIES CHARGED ON THE PUBLIC REVENUES OF NEW ZEALAND AND OUTSTANDING ON 31st MARCH, 1941—continued.

ii.-l [Pt. Ill],

PUBLIC ACCOUNTS, 1940-1941

8

j Annnal Charge. j Domicile of Principal. Nominal n i i' • i " i i -r, , Amount Due Date- ! o""M . ' I i Remarks. outstanding. I © S j Nominal When payable. New Zealand. London. ; Australia. | jg -p I interest. I rtS | ! £ s. d. I j % £ £ s. d. £ s. d. £ Brought forward .. 262,031,482 19 4 .. I .. 9,643,719 .. 151,687,444 19 9 109,464,437 19 7 879,600 New Zealand Loans Aot, 1932 t'l'Tbttad Debentures and Stock —continued. 1,703,035 14 1 15 Oct., 1959 3 51,091 15 April and 15 Oct. 1,703,035 14 1 4,245,535 0 0 15 Nov., 1959 ! 3 127,366 15 May ,. 15 Nov. 4,245,535 0 0 264,950 0 0 | 22 May, 1960 .34 9,273 22 May „ 22 Nov. 264,950 0 0 4;780, 301 0 0 ! 15 Oct., 1960*1 34 167,311 15 April „ 15 Oct. .. 4,780,301 0 0 .. * Repayable at the option of the Government at par on or after 15th October, 1955, on three months' notice. 10,884,628 0 0 1 Feb., 19631 4 435,385 1 Feb. „ 1 Aug. 378,638 14 4 10,505,989 5 8 .. f Repayable at the option of the Government at par on or after 1st February, 1943, on three months' notice. 5,000,000 0 0 I 1 Nov.. 19711 5 250,000 1 May „ 1 Nov. .. 5,000,000 0 0 .. t Repayable at the option of the Government at par in whole or in part on or after 1st November, 1956, on three months' notice. 1,168,480 16 9 Various free .. 1,163,480 16 9 5,000 0 0 .. § The currency of the major portion of this loan is for the duration of ! . the war and six months after. Total Debentures and Stock 290,078,413 10 2 .. .. 10,684,145 .. 159,443,085 4 11 129,755, /28 5 3 879,600 Funding Agreement with Imperial 577,446 11 5|j 1 June, 1945** .. 28,363ft 1 June and 1 Dec. 577,446 11 5 .. || Balance of £27,532,164, Imperial Government Government advances, funded in 23,522,752 19 2|| I Dec., 1957** .. 1,164,867ft 1 June „ 1 Dec. .. 23,522,752 19 2 .. terms of section 8, Finance Act, 1922. Details of original loan as Total Funded Debt .. 24,100,199 10 7«jl . . 1,193,230 .. 24,100,199 10 7 .. funded shown in B.-l [Pt. II], < 1921-22. •Jf Details on page 11. ** Approximately. ff Payments suspended in terms of agreement with Imperial Government. Memoranda of Security .. 513,195 6 10 15 Oct., 1959 3 15,396 15 April and 15 Oct. . . 513,195 6 10 4,002,466 3 7 15 Aug. 1965 3 120,074 15 April „ 15 Oct, 4,002,466 3 7 Total Memoranda of Security 4,515,661 10 5 .. 135,470 .. .. 4,515,661 10 5 Treasury bills .. 5,000,000 0 0 Various .. 1 50,000 Various .. .. 5,000,000 0 0 11,926,500 0 0 „ .. 11 149,081 „ .. .. 11,926,500 0 0 2,146,800 0 0 „ -.14 32,202 „ .. .. 2,146,800 0 0 .. 11,525,000 0 0 „ ..2 230,500 „ .. .. 11,525,000 0 0 .. J 135,000 0 0 „ ..24 3,375 „ .. .. 135,000 0 0 Total Treasury bills .. 30,733,300 0 0 .. .. 465,158 .. 30,733,300 0 0 Carried forward .. 349,427,574 11 2 .. | .. 12,478,003 .. 190,176,385 4 11 158,371,589 6 3 879,600

2 —B. 1 [PT. lII].

B.—l [Ft. ITT].

PUBLIC ACCOUNTS, 19 40-1941.

THE PUBLIC DEBT OF NEW ZEALAND. TABLE I.—STATEMENT OF SECURITIES CHARGED ON THE PUBLIC REVENUES OF NEW ZEALAND AND OUTSTANDING ON 31st MARCH, 1941— continued.

By the Repayment of the Public Debt Act, 1925, means are provided whereby the whole of the public debt other than that raised for State Advances purposes and those portions for which separate sinking funds exist will be extinguished in approximately sixty years from the time of coming under the provisions of the Act. The total of loans coming within the provisions of the Repayment of the Public Debt Act, 1925, is £274,576,431 12s. The Public Debt Redemption Fund Capital Account established under this Act comprises investments of sinking funds accumulated under former legislation and now invested with the State Advances Corporation £3,250,000 and the Public Trustee £7,966,688 lis. 2d.: total, £11,216,688 lis. 2d. The interest on the Redemption Fund capital is paid over to the Consolidated Fund as a set-off against the annual payments made by the latter fund to the Repayment of the Public Debt Account —viz., per cent, of the public debt cominsr under the provisions of the Act, together with 4 per cent, of the debt redeemed in accordance with the Act. Sinking funds as indicated exist for the extinction of portions of the debt to which the provisions of the Repayment of the Public Debt Act, 1925, do not apply: The balances of these sinking funds at the 31st March, 1941, were as follows: State Coal-mines Account, £6,320 10s. 4d.; Electric Supply Account, £39,322 12s. 3d.; Westport Harbour Account, £417,114 18s. 7d.; Samoan Loan Suspense Account, £3 Is. lid. ; Nauru and Ocean Islands, £35 lis. 4d. : total, £462,796 14s. sd. In addition to the special sinking funds mentioned above, special provision exists for the repayment of that portion of the debt funded by agreement with the Imperial Government, particulars of which are given on page 11. It was estimated that this portion of the debt would under the original agreement be extinguished during the financial year ending on the 31st March, 1958. Payments have been suspended by arrangement with the Imperial Government. Section 6 of the Hutt Road Act, 1939, provides that the Wellington City Council shall be kept indemnified out of the Main Highways Account from' all liability in respect of loans specified in the First Schedule of the Act totalling £276,020. At 31st March, 1941, £266,692 16s. 4d. was outstanding, against which the Public Trustee held sinking funds totalling £136,396 Is. lid.

TABLE II.—ADVANCES BY THE RESERVE BANK TO THE GOVERNMENT BY WAY OF OVERDRAFT OUTSTANDING ON 31st MARCH, 1941.

9

Annual Charge. Domicile of Principal. Nominal I — MS ■ ; Amount Due Date. I -gto i Remarks. outstanding. | „ j> j when payable _ | New Zea land. London. ; Australia. I j I j £ s. d. % £ £ s. d. £ s. d. £ Brought forward .. 349,427,574 X1 2 .. .. 12,478,003 .. 190,176,385 4 11 158,371,589 6 3 879,600 Amortization Charges. £ 2,260,020* Repayment of the .. .. * Estimated. Public Debt Act, 1925 458,700f Funded Debt .. .. •. f Represents principal repayment also suspended by agreement | with Imperial Government. 7,672J State Coal-mines .. .. i J Payable from the State Coal-mines Sinking Fund j Account. Estimated. 10,859§ Westport Harbour .. .. .. §£3,859 sinking fund, 4J per cent. Sinking Fund payable in respect of sinking funds 2,737,251 used for redemption: and £7,000 sinking fund, 1 per cent, payable Total securities charged on 349,427,574 11 2 .. .. 15,215,254 .. 190,176,385 4 11 158,371,589 6 3 879,600 on £700,000 Westport Harbour the Public Revenues and , — — — —--- Loans. outstanding at 31st March, 1941

Authority for Advances. Particulars of Advances. Account. ! Amount. [ £ s. d. Marketing Act, 1936, Section 10 .. .. .. .. Advances in respect of dairy-produce purchased for export and sale Dairy Industry Account .. .. 2,585,491 5 4 Marketing Amendment Act, 1939, Section 5 .. .. Advances in respect of meat purchased for export and sale .. Meat Industry Account .. .. 230,345 15 5 Marketing Amendment Act, 1939, Section 5 .. .. Advances in respect of fruit purchased for export and sale .. | Fruit Industry Account .. .. 66,552 12 11 Marketing Amendment Act, 1939, Section 5 .. .. Advances in respect of sundry products purchased for export Sundry Products Account .. .. 44,073 6 10 and sale Total advances as at 31st March, 1941 .. .. .. .. .. .. .. .. .. .. .. .. .. .. £2,926,463 0 6

B. —1 [PT. Ill],

PUBLIC ACCOUNTS, 1 940-1941.

TABLE III.—LOANS GUARANTEED BY THE GOVERNMENT. Contingent Liability outstanding on 31st March, 1941.

10

_ . ' , j Rate. accumulated Loans guaranteed. Authority fob Government Guabantee. outstanding DcE Date - ~ j H Remarks. Int. S.F. J! und. .- : L : - 1 I LOANS OF LOCAL AUTHORITIES. I n . £ £ ; , » , , , j °'% £ S " d " Auckland City Council (Grey Lynn Borough Local Bodies' Loans Amendment Act, 1908 • ■ } 45 ' 000 \ 18 Aug.! 1941 4J/ 1 28,842 16 4 "j Under subsec _ (6) of gec _ 10 of Christchurch City Council .. .. Local Bodies' Loans Amendment Act, 1908 .. ... 9,500 3 Dec., 1942 ! 4J U 9,201 6 9 I Local Bodies Loans AmendCambridge Borough Council .. .. 1 Local Bodies' Loans Amendment Act, 1908 .. .. 5,000 30 April, 1942 4| 1 3,220 12 0 y ment Act, 1908, one-halt o Levin Borough Council .. .. Local Bodies' Loans Amendment Act, 1908 .. .. 18,000 19 June, 1942 4£ 1| 16,908 15 2 the sinking fund is payable by Port Chalmers Borough Council .. .. Local Bodies' Loans Amendment Act, 1908 .. .. 3,500 1 July, 1942 4| 1 2,290 6 7 the Treasury. ; Taihape Borough Council .. ..I Local Bodies' Loans Amendment Act, 1908 .. 25,000 1 Aug., 1942 4£ 1 15,637 18 / J Auckland City Council (Electric-power Ex- \ Local Bodies' Loans Act, 1913, Part I"V .. .. 500,000 16 Mar., 1942 393,686 1 tension Loan) /19,425 \ j 1 July, 1947 4| 1J 13,791 16 0 Havelock North Town Board .. Local Bodies Loans Act, 1913, Part I\ .. 1,650 J 1 July, 1948 j 5 1J 1,211 12 10 Te Puke Town Board .. .. .. Local Bodies' Loans Act, 1913, Part IV .. .. 11,000 j 1 Jan., 1948 j 4J 1J 7,613 2 8 Wanganui Hospital Board . .. Local Bodies' Loans Act, 1913, Part IV, and .. 1,500 j 1 April, 1943 j 6J 2§ j 1,123 13 4 Hospitals and Charitable Institutions Amendment Act, 1920 (No. 2) . ; ' Oamaru Harbour Board .. Finance Act, 1937, sec. 42 j .. 91,099: 1 April, 1952 4 Nil .. Repayable by half-yearly instal- ! | | ■ ments. Total Local Authorities Loans 730,674 j i | STATE ADVANCES CORPORATION STOCK AND DEBENTURES. Snecial Series .. .. .. State Advances Corporation Act, 1936, sec. 25 .. 7,845,750 1 Aug., 1960 3§ | , .. 6,500,000 1 Aug., 1963 3# " " ! , .. 6,500,000 1 Aug., 1966 3| .. .. 6,500,000 1 Aug., 19«0 ! 3| - " J 6,500,000 1 Aug., 1972 j 3| j , I 6,500,000 1 Aug., 1975 3J ;; s „ .. 5,000,000 1 Aug., 1978 3| Series "A" -• i- » •• 478,520 1 Sept. 1955-60 3f Series "B" • | » •• 945,640 : 1 June, 1944 3J Total State Advances Corporation Loans j 46,769,910

B.—l [PT. 11l

PUBLIC ACCOUNTS, 1 940-1 941.

TABLE IV.—Particulars of the Public Debt funded in Terms of Finance Act, 1922, Section 8.

11

Tntal TVbt repaid Amount of Funded Animal Charge. Amount of Debt iotal Ue ™ repam Debt outstanding __ fnnrtpd 10 at, I i Z T - ~ ~ When payable. 31st March, 1941. 81st Marchi 1941 Interest. ! Total. I ! I j j ■ ; I I " [ Finance Act, 1922, sec. 8:— £ j £ £ £ £ £ Advances from the Imperial Government funded in term3 of the above Act on the basis of an annuity of 6 per cent. Interest at the rate of £4 19s. 5*88d. per cent, per annum, — Public Revenues Amendment Act, 1914, sec, 8 (War 2,067,411 237,040 1,830,371 .. .. 124,045 1 June and 1 Dec. Public Revenues Amendment Act, 1915, sec. 5 (War Expenses) 8,105,992 929,395 7,176,597 .. .. 486,360 1 June ,, 1 Dec. Finance Act, 1916, sec. 35 .. .. .. .. 4,736,842 543,104 4,193,738 .. .. 284,212 1 June „ 1 Deo. War Purposes Loan Act, 1917 .. .. .. .. 4,830,000 553,785 4,276,215 .. .. 289,800 1 June „ 1 Dec. Finance Act, 1918, sec. 10 .. .. .. .. 6,600,000 1 756,725 . 5,843,275 .. .. 396,000 1 June „ 1 Dec. Total War Loans .. .. .. .. 26,340,245 j 3,020,049 j 23,320,196 .. j .. 1,580,417 Naval Defence Act, 1909 .. ,. .. .. 963,131 i 385,684 : 577,447 .. .. 57,787 1 June and 1 Dec. Aid to Public Works and Land Settlement Act, 1910 .. 191,010 21,900 169,110 .. 11,460 1 June ,, 1 Dec. Land for Settlements Act, 1908 .. .. .. .. 37,778 4,332 j 33,446 .. .. 2,266 1 June „ 1 Dec Totals .. .. .. .. .. 27,532,164 | 3,431,965 24,100,199 i * * 1,651,930* ; ~ ' 1 ' ' *"** * Annual instalment of principal and interest £1,651,929 16s. 8d., but all instalments subsequent to 1st June, 1931, have been suspended. The amount of interest and repayment of debt varies with each instalment, and details will again be shown when payment of instalments is resumed.

B.—l [PT. ILIJ.

PUBLIC ACCOUNTS, 1940-19 41.

TABLE V.—STATEMENT of SINKING FUNDS ACCRUED to the 31st March, 1941, in respect of various Loans.

TABLE VI.—STATEMENT of the RECEIPTS and DISBURSEMENTS of the SINKING

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PUBLIC DEBT £ s. d. £ s. d. Samoan Loan Sinking Fund, — Funds held in Deposits Account, Samoan Loan Sinking Fund Account.. .. 1 II Electric Supply Sinking Fund,— Funds held in Electric Supply Sinking Fund Account — North Island Scheme .. .. •• •• •• •• 25,110 9 11 South Island Scheme .. .. .. •• •• •• 14,212 2 4 ■ «J9 jDai la «J Westport Harbour Loans Sinking Fund, — Funds held by the Publio Trustee .. .. •• •• •• 417,114 18 7 456,440 12 9

RECEIPTS. | £ s. d j £ s. u. SAMOAN LOAN SINKING FUND Accumulation held on 31st March, 1940, — In Deposits Account, Samoan Loan Sinking Fund Account .. .. .. r ' 11 Contribution by Samoan Treasury .. .. .. .. • • • • 5,ill JO 0 5,373 1 11 ELECTRIC SUPPLY SINKING FUND Accumulation held on 31st Maroh, 1940, — In Electrio Supply Sinking Fund Aocount— North Island Scheme .. .. •• •• •• •• •• a o South Island Scheme .. .. •• •• •• •• •* 10,540 Transfer from Electrio Supply Account in accordance with section 12 of the State Supply of Electrical Energy Act, 1917,— North Island Scheme .. .. •• •• •• •• cc'ono t t South Island Scheme .. .. •• •• •• •• Ob,802 Interest on Investments — North Island Scheme .. ■ • ■ • • ■ • • • • • • on 10 i i South Island Scheme .. .. ■■ •• u 498,152 12 3 WESTPORT HARBOUR LOANS SINKING FUND:— Finance Act, 1928, section 13,— Accumulated funds as at 31st March, 1940 .. .. .. .. •• ' ''' 'j " ~ Subsection (4) (a) —Contribution for the financial year 1940-41 .. .. 7,000 0 0 Subsection 4 (d) —Contribution at the rate of 4 J per cent, per annum in respect of Sinking Funds used to 31st Maroh, 1940, to redeem debentures •• 3,858 15 0 Interest on Investments .. .. •• •• •• •• i4,/04 li o 417,139 18 7

B.—l [PT. lIIJ.

PUBLIC ACCOUNTS, 1940-1941.

FUNDS during the FINANCIAL YEAR ended 31st March, 1941.

13

DISBURSEMENTS. £ S- d _ SAMOAN LOAN SINKING FUND:— Loans redeemed in terms of section 4 of the Finance Act, 1932 (No. 2) .. .. .. 5,370 0 0 Accumulation held in Deposits Account, Samoan Loan Sinking Fund Account, on 31st March, 1941 •• •• -31 11 5,373 1 11 ELECTRIC SUPPLY SINKING FUND Securities redeemed in terms of section 23 (1) of the Finance Aot, 1928 .. .. ,. 458 830 0 0 Accumulation held in Electric Supply Sinking Fund Account on 31st March, 1941, — North Island Scheme .. .. .. .. .. .. .. 25 110 9 11 South Island Scheme .. .. .. .. .. .. .. ,, 2 4 498,152 12 3 WESTPORT HARBOUR LOANS SINKING FUND Finance Act, 1928, section 13, — Annual fee for administering fund .. .. .. ., ,, 25 0 0 Accumulation held by the Public Trustee on 31st March, 1941 .. .. ,. 417 1x4 18 7 417,139 18 7

B.—l [PT. Ill].

PUBLIC ACCOUNTS, 1940-1941.

TABLE VII.—TRANSACTIONS IN CONNECTION WITH THE PUBLIC DEBT IN THE YEAR ENDED 31st MARCH, 1941.

External debt— Details of Above. 1. London — Increases — New issues for oapital works— £ 8. d. £ s. d. £ s. d. Public Works Fund : General Purposes Account .. .. 903,550 0 0 Public Works Fund: Electric Supply Account .. .. 3(52,660 0 0 Main Highways Aocount .. .. .. •• •• 3,975 0 0 — 1,270,185 0 0 New issues for War Expenses Account .. .. •• •• •• 6,266,231 10 5 New issues to oover costs, obarges, and expenses (premiums on conversions of 1940-45 stook) .. .. .. .. •• •• 62,202 0 0 7,598,618 10 5 Decreases — Redemptions from— Publio Debt Repayment Account .. . . .. .. 199,200 0 0 Sinking Funds: Electric Supply .. .. .. . • 456,160 0 0 Loans Redemption Account .. .. •• •• 3,550,462 10 6 4,205,822 10 6 Renewals and conversions to internal floating debt .. .. .. .. 2,884,477 9 6 7,090,300 0 0 Increase .. . ■ .. •• •• • • •• £508,318 10 5 Internal debt— 2. Long-term debt — Increases — New issues for capital works — Public Works Fund : General Purposes Account .. .. 5,778,815 0 0 Publi & Works Fund : Electric Supply Account .. .. 765,000 0 0 Iron and Steel Industry Account .. .. •• •• 4,000 0 0 Main Highways Account .. .. •• •• 801,000 0 0 State Coal-mines Account .. .. .. •• •• 25,000 0 0 State Forests Account .. .. •• •• 130,000 0 0 7,503,815 0 0 New issues : War Expenses Aocount .. .. •• •• •• 10,746,251 14 5 New issues for redemptions . . .. • ■ • • • • ■ ■ ■ • 5,000 0 0 Issues in renewal and conversion of floating debt .. .. . • 3,245,000 0 0 ■ 21,500,066 14 5 DecreasesRedemption from — Public Debt Repayment Account .. .. •• • • 519,610 0 0 Sinking Funds — Electric Supply .. .. •• •• •• 2,670 0 0 State Coal-mines .. .. .. •• 5,501 13 4 Samoan Loans .. .. •• •• 5,370 0 0 Nauru and Ocean Islands .. •• •• 34,700 0 0 48,241 13 4 Loans Redemption Account .. .. .. •• •• 108,795 4 7 Housing Account .. • . • • • • • • ■ ■ • • 140,000 0 0 — 816,646 17 11 Inorease .. .. .. .. ■ ■ •• £20,683,419 16 6 3. Floating debt— Increases — New issues for capital works — Public Works Fund : General Purposes Acoount .. .. 1,297,200 0 0 Public Works Fund : Electric Supply Account .. .. 630,000 0 0 Main Highways Account .. .. .. •• •• 543,000 0 0 State Coal-mines Account .. .. • • . • • ■ 10,000 0 0 State Forests Account .. .. .. .. •• 215,000 0 0 2,695,200 0 0 New issues for War Expenses Account .. .. .. . • •• 1,140,000 0 0 New issues for Housing .. .. .. . • •• •• 5,500,000 0 0 New issues to oover costs, charges, expenses, and exchange on redemptions 1940-45 stook, London .. .. •• .. •• 459,518 0 3 New issues for conversion of long-term external debt .. .. .. ■ • 2,880,999 9 9 12,675,717 10 0 Decreases' — Redemptions from — Public Debt Repayment Account .. .. 459,417 10 0 Loans Redemptions Acoount .. .. .. ■ • 3,643,000 0 0 — 4,102,417 10 0 Conversions to long-term internal debt .. •• •• 3,245,000 0 0 7,347,417 10 0 Increase .. .. .. .. .. .■ ■• £5,328,300 0 0 Notes, —(i) For details of redemptions from Publio Debt Repayment Account, see parliamentary,paper 8.-2. (2) Money for new issues was borrowed at the following rates: li per cent., £879,473 Is. 3d.; 1| per cent., £779,800; 2 per cent., £7 235,444 195.; H per cent., £500,000; 23 per cent., £100,755; 3 per cent., £12,934,627 7s. 5d.; H per cent., £1,696,780; 34 per cent., £377 202; 4 per cent., £616,525; 4J per cent., £1,448,000; interest free, £1,210,195 17s. 5d.; free to Ist October, 1943 thereafter 2J per cent, to Ist October, 1953, £7,864,600; total £35,643,403 ss. Id. (3) Former shareholders of Reserve Bank and State Advances Corporation who now hold 4-per-cent. stock have the option of requiring redemption of such stock on giving fourteen days' notice. £5,000 was borrowed during the year at 3 per cent., and from this sum and the balance of £7,843 15s. brought forward from the previous! year, redemptions totalling £10,680 ss. were effected, leaving a balance of £2,163 10s. unused at the 31st March, 1941.

14

Outstanding. Slat March, 1940 81st March, 1941 (Nominal Amount). (Nominal Amount). External debt— £ s. d. £ s. d. £ s. d. London . .. .. ■■ •• 157,863,270 15 10 158,371,589 6 3 508,318 10 5 Australia .. .. .. .. .. •• •• 879,600 0 0 879,600 0 0 Internal debt — Long-term debt .. .. .. .. •• .138,759,665 8 5 159,443,085 4 11 20,683,419 16 fa Floating debt 25,405,000 0 0 30,733,300 0 0 5,328,300 0 0 322,907,536 4 3 349,427,574 11 2 26,520,038 6 11 ■ ■= ---1=======^=^^=

B.—l [Pt. lII].

PUBLIC ACCOUNTS, 1940-1941.

TABLE VIM.—ALLOCATION OF THE PUBLIC DEBT AS AT 31st MARCH, 1941, ACCORDING TO THE EXPENDITURE APPEARING IN THE DEPARTMENTAL BALANCE-SHEETS PREPARED IN TERMS OF SECTION 57 OF THE FINANCE ACT, 1932. £ Railways .. .. .. .. .. .. -74,398,199 Hydro-electric Schemes .. .. .. .. .. 15,470,029 Post and Telegraph Services .. .. .. .. 16,571,205 Public Buildings, Schools, and Sites .. .. .. 18,607,300 Roads and Highways .. .. .. .. .. 39,577,856 Harbours and Lighthouses .. .. .. .. 2,198,798 State Forests .. .. .. .. .. .. 3,183,959 Housing.. .. .. .. .. .. 16,918,945 Land Settlement and Improvement .. .. .. 27,695,285 Shares in Bank of New Zealand .. .. .. .. 875,000 Shares in Reserve Bank of New Zealand .. .. .. 1,125,013 Investment in State Advances Corporation .. .. .. 38,046,759 Share in Nauru and Ocean Island Phosphates .. .. 249,705 Development of Mining .. .. .. .. .. 1,037,640 Tourist Resorts .. .. .. .. .. .. 768,303 Immigration .. ~ .. .. .. .. 2,817,204 War and Defence (including £17,588,205 in respect of present war) 80,409,891 Miscellaneous Assets and Services' .. .. .. .. 7,955,214 Cash and Investments in hand .. .. .. .. 1,521,270 £349,427,575 B. C. Ashwin, Secretary to the Treasury. A. R. F. Mackay, M.Com. (N.Z.), Ph.D. (Lond.), Accountant to the Treasury. The Treasury, Wellington, 14th July, 1941. Examined and found correct. Cyril G. Collins, Controller and Auditor-General. Audit Office, 16th July, 1941.

Approximate Coat of Paper.—Preparation, not given ; printing (580 copies), £32.

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