B.—l [P T . 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 the total of the amount as redeemed to 31st March, 1940 : —

One of the advantages claimed for the debt-repayment scheme was that the annual charge on the Consolidated Fund would be reduced as debt was redeemed each year, but there is a reduction only when the interest charge on the debt redeemed is greater than the contribution which becomes payable by the Consolidated Fund to the Debt Repayment Account under the provisions of the Repayment of the Public Debt Act, 1925. Under these provisions Ordinary Revenue Account is required to contribute to the Repayment Account an amount computed at 3| per cent, on the public debt redeemed under the provision of the Act, and it will be seen that no saving can be made on any debt redeemed on which interest was payable at a lower rate than 3f per cent. The Public Debt Commission has, during the year, redeemed £5,000 2|-per-cent. and £1,626,580 3-per-cent. securities, and the contribution required from Ordinary Revenue Account will be £8,182 18s. in excess of the amount previously required for the payment of interest. 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, 1940: — Particulars. £ S. d. Debt subject to the Repayment of the Public Debt Act, 1925 .. .. 249,344,651 11 9 Debt not subject to the Repayment of the Public Debt Act, 1925 — Loans for which special sinking funds are provided— £ s. d. £ s. d. State Coal-mines Account .. 167,953 6 8 Electric Supply Account .. 14,171,199 1 0 Nauru and Ocean Islands Account 284,405 0 0 Westport Harbour Account .. 614,250 0 0 Samoan Loan Suspense Account 82,000 0 0 15,319,807 7 8 Funded Debt to the Imperial Government — Ordinary Revenue Account — Naval Defence Act Account 577,446 11 5 War Expenses Account .. 23,320,196 17 0 Public Works Fund — General Purposes Account .. 169,109 15 3 Land for Settlements Account .. 33,446 6 11 24,100,199 10 7 State Advances Account .. .. .. 34,142,877 14 3 73,562,884 12 6 Total debt as at 31st March, 1940 (see 8.-l [Pt. Ill], page 9) .. £322,907,536 4 3

IV

Nominal Value of Securities. Total to — ; Total Cost of Rate of Interest. 31st March, 1939. I Total to Redemption. Year 1939-40. 31st March> 1940Per Cent. £ s. d. £ s. d. £ s. d. £ s. d. 2J .. .. .. 5,000 0 0 5,000 0 0 5,000 0 0 3 .. .. 2,211,588 14 8 1,626,580 0 0 3,838,168 14 8 3,838,168 14 8 .. .. 476,960 0 0 4,041 8 8 481,001 8 8 4-81,001 8 8 3f .. .. 0 12 0 170,375 15 4 170,376 7 4 170,376 7 4 4 .. 3,036,433 0 0 72,220 5 6 3,108,653 5 6 3,096,965 14 7 44 .. .. 2,087,460 0 0 .. 2,087,460 0 0 2,072,082 5 0 5 .. 5,423,735 0 0 .. 5,423,735 0 0 5,423,181 5 0 5| .. .. 1,530,990 0 0 .. 1,530,990 0 0 1,530,972 10 0 5J .. .. 1,033,110 0 0 .. 1,033,110 0 0 1,030,694 12 2 6 .. 2,633,588 9 9 .. 2,633,588 9 9 2,612,292 8 8 18,433,865 16 5 1,878,217 9 6 20,312,083 5 11 20,260,735 6 1* * This figure does not include cost of exchange on remittances.