8.—6.

PUBLIC DEBT. Apart from the operations affecting the floating debt which I have just explained, there was a net increase in the amount of the public debt during the year of £1,277,394, £491,254 being due to premiums arising under the conversion operations and £786,140 to operations during the year. The successful conversion of £5,000,000 5-per-cent. debt into 3|-per-cent. securities at 97 in October last, referred to in last year's Budget, was the only debt operation undertaken in London during the financial year. In the Dominion additional long-term debt to the amount of £4,522,765 was raised for the following purposes: — Capital expenditure — £ £ Public works (including hydro-electric supply) .. 1,662,690 Land for settlements . . .. •• 198,000 Main highways . . . . • • • • 203,000 State Forests .. .. .. 75,000 2,138,690 Redemptions of debt . . • • • • • • • 2,384,075 £4,522,765 Of this £4,522,765 raised in New Zealand, £1,906,090 was obtained from the public at 3f per cent., while the balance of £2,616,675 was derived from departmental investments. Redemptions of long-term debt during the financial year amounted to £3,736,625, the funds for the purpose being derived from the following sources : — For debt repayment — £ £ Repayment of Public Debt Act, 1925 . . . . 596,270 Reparations and war credits . . . . ■ • 650 Separate accounts . . . . • • ■ • 754,040 1,350,960 From issues in redemption . . . . . • • • 2,385,665 £3,736,625 Thus the additional debt incurred exceeded repayments by £786,140. Of the redemptions effected, £104,560 was held in Australia and the balance in New Zealand. Thanks to the generosity of Great Britain in extending the moratorium on our funded war debt and certain other debts due to the British Government, no payments were made in respect of this portion of the debt during last financial year. The debt operations for last financial year may be summarized as follows: — £ Debt as at 31st March, 1933 .. .. •• 282,622,958 Plus net increase in floating debt (mostly temporary) as previously mentioned .. .. .. 18,891,644 301,514,602 Plus net increase in long-term debt— £ (a) Due to loan conversion .. 491,254 (b) Due to operations during year .. 786,140 1,277,394 Public debt as at 31st March, 1934 .. £302,791,996 Following the simplification of the internal debt as a result of the conversion operations, the opportunity has been taken to alter the form of the debt table (8.-l [Part III]), which honourable members will find now contains a concise

Public Debt.

Debt redemption.

Debt summary.

6