8.—6.

statement showing the amount, interest-rate, maturity date, and domicile of the debt, together with a subsidiary statement showing the purposes for which it was raised. The domicile of the debt as a whole on the 31st March, 1934, was as follows:—- £ London .. .. .. .. .. 160,908,105 Australia .. . . . . . . . . 2,908,150 New Zealand .. .. .. 138,975,741 £302,791,996 Mention was also made in last year's Financial Statement of the only other loan over which the Dominion had the immediate right to exercise an option of repayment, and honourable members will be pleased to learn that this loan has now been dealt with on very satisfactory terms. The loan carried interest at 4 per cent, and of the original £4,000,000 the amount of £3,989,100, being the balance of the loan held in London, was recently offered for conversion into 3j-per-cent. stock at par maturing 1955-60. Cash subscriptions were invited from the public to meet redemptions of any unconverted holdings, and advices to hand indicate that the new issue was favourably received. Holders of the loan were given the right to convert into the new issue, and applications to the extent of £2,501,265 were received under this category. Cash applications, from the proceeds of which the unconverted balance will be paid off, amounted to £1,522,000, the net result showing an oversubscription of £34,165. The comment of London financial authorities is to the effect that the transaction from the Dominion's viewpoint is very satisfactory, this being evident from the favourable terms on which the new issue has been placed. The result also indicates the proximity to current market values of the price of issue emphasizing the successful gauging of the London market conditions. CAPITAL EXPENDITURE. The new loan-moneys raised last financial year, augmented from balances in hand, were used in carrying out the programme of capital works outlined in last year's Budget, although, as will be seen from the details included in the publicworks estimates to be tabled to-night, the expenditure in respect of some of the items was less than was anticipated. For the current financial year it is again intended to proceed with a moderate programme of capital expenditure amounting in the aggregate to £3,560,000. It is anticipated that funds already in hand, together with departmental investments, will be sufficient to finance this expenditure. Accordingly, it will not be necessary to issue any special loan or make any further offer of Government securities to the public this financial year. The proposals are embodied in detail in the estimates, but it will perhaps assist honourable members if I briefly outline the principal items concerned. With the completion of the main line between Taranaki and the North Island Main Trunk, to be handed over to the Railways Department on the Ist September, railway construction will cease. There is in hand, however, an improvement work of considerable magnitude in the Wellington terminal facilities including the Tawa Flat deviation and the electrification of the line to Paekakariki. It is estimated that a net amount of £227,000 will be required for these purposes during the current financial year, but nearly £1,000,000 will be required to complete the whole undertaking. The only other large single undertaking at present in hand is Waitaki River Electric-power Scheme, which, it is anticipated, will come into operation towards the end of this year after further expenditure amounting to £306,000. In addition, some substantial amounts shown in the estimates will be required for various extensions to the other large schemes. The net estimate of the total capital expenditure for the year on hydro-electric works is £550,000. I may add that

Debt domicile.

Loan conversion.

Public Works.

Loan programme.

Railway construction, &c.

Hydro-electric works.

7