B.—l [PT. ll].

Repayment of the Public Debt.

The following table gives particulars of the amount of securities redeemed during the year under the provisions of the Repayment of the Public Debt Act, 1925, and also of the total amount so redeemed to 31st March, 1936 :—

It will be seen that an annual saving of interest amounting to £182,890 17s. 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 of 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 31st March, 1934 .. .. .. .. .. .. 137,436 17 9 31st March, 1935 .. .. .. .. .. .. 160,952 12 9 31st March, 1936 .. .. .. .. .. .. 182,890 17 3 The provision for debt-repayment by annual contributions from the Consolidated Fund is estimated to extinguish the debt in about sixty years, and has certain advantages over the ordinary system of sinking funds, as moneys are applied for an immediate repayment of debt, thus reducing the annual interest charges. The difficulty inherent in realizing large amounts of investments as and when required for redemption purposes is thus obviated. The following statement shows the amount of loans subject to the Kepayment of the Public Debt Act, 1925, and of those not subject to the Act, as at 31st March, 1936 : — £ s. d. Debt subject to the Repayment ol the Public Debt Act, 1925 .. .. .. 210,862,371 0 9 Debt not subject to the Repayment of the Public Debt Act, 1925— Loans raised in respect of the— State Advances Account— £ s. d. £ s. d. Advances to Settlers Branch.. .. 19,344,970 3 1 Advances to Workers Branch .. 12,097,946 8 1 Advances to Local Authorities Branch 2,778,690 15 7 34,221,607 6 9 Loans for which special sinking funds are provided State Coal-mines Account .. .. 87,243 6 8 Electric Supply Account .. .. 12,159,511 15 0 Nauru and Ocean Islands Account .. 410,915 0 0 Westport Harbour Account .. .. 614,250 0 0 Samoan Loans Suspense Account .. 105,000 0 0 13,376,920 1 8 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 71,698,726 19 0 Exempted under Finance Act, 1931 (No. 4), section 7 (2) : Deed of hypothecation .. .. 2,900,000 0 0 Total debt not subject to the Act .. .. 74,598,726 19 0 Total debt as at 31st March, 1936 (see 8.-l [Pt. Ill], 1936, page 8) .. .. £285,461,097 19 9*

* N.B. —These figures do not include loans under Rural Advances Act, 1926, amounting to £4,213,050, which are not treated by the Treasury as forming part of the public debt.

V

Nominal Value of Securities. Kate of . ' Total Cost of Annual Saving interest. Total t0 31st Maroh Total to 31st March, Redemptions. of Interest.* 1935. J Year !935-36. 1936 Per Cent. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. 31 56,460 0 0 .. 56,460 0 0 56,460 0 0 3f 0 12 0 .. 0 12 0 0 12 | 0 4 2,290,863 0 0 10,900 0 0 2,301,763 0 0 2,290,075 9 1 11,508 16 3 4| 2,070,940 0 0 .. 2,070,940 0 0 2,055,562 5 0 20,709 8 0 5 4,163,400 0 0 1,251,815 0 0 5,415,215 0 0 5,414,661 5 0 81,228 4 6 5| 1,353,590 0 0 177,400 0 0 1,530,990 0 0 1,530,972 10 0 26,792 6 6 h\ 953,880 0 0 100 0 0 953,980 0 0 951,564 12 2 19,079 12 0 6 942,900 0 0 .. 942,900 0 0 921,603 18 11 23,572 10 0 11,832,033 12 0 1,440,215 0 0 13,272,248 12 0 13,220,900 12 2| 182,890 17 3 * Difference between the rate of interest which the securities bore and the rate (3J per cent.) payable by the Consolidated Fund to the Public Debt Repayment Account on the amount of securities redeemed under the Act. f This figure does not include cost of exchange on remittances.