8.—2

4

outstanding at the end of the year, exclusive of those for Land Purchases, amounted to £861,861, which, added to the amount expended, £867,194 gives a total of £1,729,055, as against £1,727,729 voted for the year. Honourable members will perceive that, in speaking of the expenditure out of the Public Works Fund and the outstanding liabilities at the close of the year, I expressly excluded the expenditure and liabilities in respect of Land Purchases. I did so because I think it is desirable to keep the liabilities on account of Land Purchases entirely distinct from the other liabilities of the Public Works Fund, as they stand on an entirely different footing. From the return of liabilities laid before the House by the Audit Office it will be seen that the Land Purchase liabilities on 31st March last amounted to £309,299 ; at the close of the previous year the amount was £338,876 ; and last year the House was informed that probably not more than £200,000 would be required to complete the purchase of those blocks which the Government had decided to acquire. No new liabilities have been incurred on this account; and, as already stated, the amount expended last year was £29,843 out of a vote for £82,455 —the difference between the amount voted and the expenditure being attributable to the non-completion last year of the purchase of a large block of land in the Provincial District of Hawke's Bay. The balance of the Public Works Fund remaining unexpended on 31st March last, including the balance of the loan of 1882 to be received, estimated at £65,000, amounted to £1,017,725, consisting of cash and securities readily convertible into cash. THE PUBLIC DEBT. On the 31st March, 1882, the gross public debt of the colony amounted to £29,946,711, subject to a deduction of £2,266,418 for accrued sinking funds. On the 31st March, 1883, the debt was £30,357,111, and the sinking funds had increased to £2,571,829, the net debt being thus £27,785,281, or £104,989 more than it was in the previous year. The only addition to the public debt during the past year was the loan of £1,000,000 authorized last session, of which I shall have something to say presently. During the year we were enabled, however, out of moneys at credit of the Public Works Fund requiring temporary investment, to reduce the amount of Imperial guaranteed debentures outstanding on 31st March, 1882, by £264,700, and to take up temporarily debentures for £319,400 issued under the Treasury Bills Acts of 187 9 and 1880, upon which advances had been obtained, also £3,300 of the Immigration and Public Works Loan of 1870. We also redeemed, out of special sinking funds, £2,200 debentures of the North Otago District Public Works Loan, which, with £67,800 previously redeemed, completed the redemption of the debentures of that loan; further, the sinking funds were increased during the year by £305,411. These sums added together give £895,011, which deducted from £1,000,000 leaves £104,989, the sum by which, as I have stated, the public debt was increased during the past year. When, however, we have raised the amounts represented by the Imperial guaranteed debentures in hand (£400,000), and debentures for £323,300 temporarily taken up out of the moneys at credit of the Public Works Fund, the net public debt of the colony will amount to £28,508,581. In accordance with the provisions of the Treasury Bills Acts of 1879 and 1880, the whole of the Treasury Bills issued under these Acts, amounting to £1,832,000, were, on the 31st December, 1882, exchanged for debentures having a currency of three years. It will be remembered that the Government proposed, w Tith the concurrence of the House, to convert these debentures into 4 per cent. Inscribed Stock. I regret that circumstances have not yet proved sufficiently favourable to a successful operation of this nature, but so soon as a fitting opportunity offers it is the intention of the Glovernment to inscribe these debentures. LOAN OF £1,000,000 EAISED IN JANUARY, 1883. Papers relating to the negotiation of the loan of £1,000,000 raised last January will shortly be laid before honourable members.

Table No. 9.

Table No. 5