B.—l [ Pt. ll]

Zealand was £636,933. Of this latter amount £91,930 was in respect of Reserve Fund investments held overseas, and was treated in the public accounts as a receipt to the separate account Reserve Fund Account. The balance of the exchange accretion, £545,002, has, pending decision as to its ultimate disposal, been included in Deposits Account, and forms part of the item " Deposits lodged, £6,684,044." It appears to the Audit Office that the amount of £545,002 belongs to Consolidated Fund, Ordinary Revenue, and should accordingly be credited to that account. In keeping with the changes outlined in the foregoing remarks, and as stated on page 7 of the Budget, the public debt domiciled overseas, which previously was shown in the Statement of the Public Debt of the Dominion (parliamentary paper 8.-l [Pt. Ill]) at the sterling figure, is now shown in that statement in pounds New Zealand. The increase in the figure of the debt resulting from the adjustment made as at Ist April, 1943, was £39,568,574 9s. lid. Repayment of Public Debt The following table gives particulars of the amount of securities redeemed under the provisions of the Repayment of the Public Debt Act, 1925, and the total cost of redemption :—

The opening balance of the Public Debt Repayment Account was £276,278 ss. 4d., and during the year £3,053,514 ss. Id. was transferred from Consolidated Fund to that account. Securities valued at £2,420,480, as shown above, were redeemed, leaving a balance at 31st March of £909,312 10s. sd. available for further redemptions. The major portion of this sum was utilized on 15th May, 1944, to redeem 4-per-cent. securities maturing 15th February, 1943-46. The following statement shows the amount of loans subject to the Repayment of the Public Debt Act, 1925, and those not subject to the Act, as at 31st March, 1944. The amounts set opposite the several accounts, other than the Ordinary Revenue Accounts, War Expenses (1939), and National Development Loans Accounts, represent also the amounts of capital liability due by such accounts to the Consolidated Fund in terms of section 6 of the National Development Loans Act, 1941. Included in the statement are two accounts—Exchange Account (Ordinary) ; and Exchange Account (War Expenses)—which together represent the total exchange on New Zealand securities domiciled in London. The exchange increment of £39,568,574 9s. lid., which, as already stated, was added to the public debt at Ist April, 1943, was reduced during the year by reason of redemptions from cash of London-domiciled securities and replacement of certain London securities with

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Nominal Value of Securities redeemed. Rate of Interest ; — ; Total Cost ol perCent. Total to i „ 1(U „ ,, ' Total to Redemptions. 31st March, 1943. j Hear ia4d-44. 31st March, 1944. £ s. d. £ s. d. £ s. d. £ s. d. 1| .. .. 459,417 10 0 .. 459,417 10 0 459,417 10 0 14 .. .. 1,760,437 0 0 .. 1,760,437 0 0 1,760,437 0 0 2i .. .. 5,000 0 0 17,515 0 0 22,515 0 0 22,515 0 0 2|- .. .. 199,200 0 0 .. 199,200 0 0 199,200 0 0 3 .. .. 4,069,198 14 8 71,900 0 0 4,141,098 14 8 4,141,098 14 8 3| .. .. 519,865 0 0 12,985 0 0 532,850 0 0 532,850 0 0 3| .. .. 3,019,301 8 8 2,313,875 0 0 5,333,176 8 8 5,333,176 8 8 3| .. .. 285,411 7 4 2,700 0 0 288,111 7 4 288,111 7 4 4 .. .. 3,903,538 5 6 1,505 0 0 3,905,043 5 6' 3,893,355 14 7 U .. .. 2,104,760 0 0 .. 2,104,760 0 0 2,089,382 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 5f .. .. 1,033,310 0 0 .. 1,033,310 0 0 1,030,894 12 2 6 .. .. 2,633,588 9 9 .. 2,633,588 9 9 2,612,292 8 8 26,947,752 15 11 2,420,480 0 0 29,368,232 15 11 29,316,884 16 1