B.—l [Pt. ll].

It will be seen tha.t an annual saving of interest amounting to £109,236 2s. 3d. has now been effected by the operation of the Act. The following figures show how this saving increases year by year as the cumulative effect of the sinking fund becomes apparent:—■ Annual saving in interest on securities redeemed to — £ s . d. 31st March, 1926 .. .. .. .. .. .. 8,137 10 3 31st March, 1927 .. .. .. .. .. .. 27,043 9 3 31st March, 1928 .. .. .. .. .. .. 39,592 0 4 31st March, 1929 .. .. .. .. .. .. 46,782 0 4 31st March, 1930 .. .. .. .. .. .. 57,218 13 7 31st March, 1931 .. .. .. .. .. .. 69,198 9 3 31st March, 1932 .. .. .. .. .. .. 90,816 3 3 31st March, 1933 .. .. .. .. .. .. 109,236 2 3 In this connection I would draw attention to the fact that at 31st March, 1933, there was a sum of £429,116 12s. 10d. cash lying at credit of the Public Debt Eepayment Account, this amount not having been used for the purpose for which it was transferred to the account. The failure to use this sum in the year in which it became available will reduce the saving of interest in all future years. The following statement shows the amount of loans subject to the Repayment of the Public Debt Act, 1925, and of those not subject to the Act, as at 31st March, 1933 : —■ £ s. d. Debt subject to the Repayment of the Public Debt Act, 1925 .. .. 208,200,198 12 9 Debt not subject to the Repayment of the Public Debt Act, 1925— Exempted under section 2 of the Act — Treasury bills issued under the £ s. d. Public Revenues Act, 1926, section 41 .. .. .. .. 1,585,000 0 0 Loans raised in respect of the State Advances Account— £ s. d. Advances to Settlers Branch .. 20,255,970 8 5 Advances to Workers Branch .. 12,828,439 10 4 Advances to Local Authorities Branch .. .. .. 2,778,690 15 7 35,863,100 14 4 Loans for which special sinking funds are provided— State Coal-mines Account .. 133,733 6 8 Electric Supply Account .. 11,533,275 11 1 Nauru and Ooean Islands Account 479,200 0 0 Westport Harbour Account .. 614,250 0 0 Samoan Loan Suspense Account 105,000 0 0 12,865,458 17 9 Funded debt to the Imperial Government— Land for Settlements Account .. 33,446 6 11 Naval Defence Act Account .. 577,446 11 5 Public Works Fund — General Purposes Account .. .. 169,109 15 3 War Expenses Account .. 23,320,196 17 0 24,100,199 10 7 74,413,759 2 8 Exempted under Finance Act, 1931 (No. 4), section 7 (2) : Deed of hypothecation .. .. .. .. 2,250,000 0 0 Total debt not subject to the Act .. 76,663,759 2 8 Total debt as at 31st March, 1933 (see 8.-l [Part lII], 1933, page 5) . . £284,872,957 15 5*

• N.B.—This does not include loans under Rural Advances Act, 1928, amounting to £4,213,050, which are not treated by the Treasure as forming part of the public debt.

XI