B—l7

latter sum was much larger than usual and included £238,000 representing the purchasemoney of assets sold by two local authorities. The purchase-money could not conveniently be utilized in loan-repayment, and accordingly approval was given for it to be expended on capital works. The amount sanctioned for new works shows a very substantial increase, as was to be expected with the expansion of local-authority activity following the abnormally low level of activities during the war period. Increased costs also are reflected in the amounts of loan proposals. The borrowing by Hospital Boards was again very heavy and was the highest annual figure on record, being more than 50 per cent, higher than any previous year's figure. Hospital Board borrowing was also the highest of any individual category for local-body works-. Large increases are shown in proposals for drainage and sewerage works, borough street works, recreational facilities, machinery purchases, and transport. The latter' item is largely accounted for by the Dunedin City Council's scheme for the complete replacement of electrical tramways by a trolly-bus service involving loans totalling £858,000. Proposed harbour works resulted in another item which exceeded £1,000,000, mainly for major long-term programmes at Auckland and Wellington. Notwithstanding the immediate difficulties associated with the shortage of power, electric-supply authorities are undertaking heavy capital expenditure in the extension of supply to new areas, in the further reticulation of areas already receiving supply, and in increasing the carryingcapacity of reticulation lines. The new loans under this heading show a £740,000 increase over the 1945-46 figure and reached a total of £1,471,900. Local-authority housing proposals have shown an increase during the year, transit housing still being a substantial item. It is noteworthy, however, that whereas in 1945-46 transit housing proposals well exceeded the amounts provided for permanent housing, in 1946-47 permanent housing predominated greatly. Municipal buildings, offices, &c., show a very modest increase, presumably giving place to the more urgent provision of housing. The amount referred back during the year (£2,427,027) was considerably higher than usual and reflects in a measure the fact that the Board is unwilling to -sanction excessive borrowing under buoyant conditions that might later prove unjustified or too great a burden for the local authorities concerned. Approximately half the amount referred back was in respect of Hospital Board proposals. Applications dealt with by the Board have been as follows :

2

Sanctioned. Total Applications. ISTew Works. Redemptions. £ £ £ 1927-28 4,636,649 3,212,185 1,048,796 1928-29 6,007,045 3,866,551 809,221 1929-30 4,218,730 3,563,842 967,875 1930-31 3,840,505 1,766,256 838,901 1931-32 3,412,365 781,195 2,483,810 1932-33 2,951,645 406,521 2,348.231 1933-34 3,884,132 917,560 2,744,245 1934-35 3,859,363 1,585,440 2,379,955 1935-36 4,061,076 1,550,690 2,051,790 1936-37 2,804,308 2,411,358 430,313 1937-38 3,362,173 3,098,445 122,758 1938-39 5,138,917 3,013,872 1,188,525 1939-40 2,674,450 1,701,460 355,800 1940-41 5,336,640 2,709,505 1,602,670 1941-42 4,589,653 1,898,096 1,391,728 1942-43 3,336,770 1,497,120 1,121,000 1943-44 3,999,665 1,349,335 2,359,755 1944-45 3,242,327 1,737,807 698,120 1945-46 3,497,820 2,643,935 243,235 1946-47 9,843,543 7,289,436 1,005,430 84,697,776 47,000,609 26,193,158 < 73,193,767