B—l7

The difference (£11,504,009) represents amounts declined or referred back by the Board during the period. The following table shows the movement of gross local-authority debt: — £ " £ 1915 .. .. 24,538,721 1939 .. .. 68,206,674 1920 .. .. 30,187,942 1940 .. .. 69,486,970 1925 .. .. 53,353,466 1941 .. .. 67,974,687 1930 .. .. 71,207,539 1942 .. .. 66,645,990 1931 .. .. 72,686,036 1943 .. .. 65,131,074 1932 .. .. 72,402,282 1944 .. .. 63,262,828 1933 .. .. 72,476,056 1945 .. .. 61,237,937 1934 .. .. 71,969,387 1946 .. .. 60,025,864 The domicile of local-authority debt has been as follows :

The low interest-rates mentioned in last year's report are still being maintained, and accordingly during the year the Board revised its policy with regard to the interestrates it was prepared to sanction. The maximum rate which the Board will now approve is per cent., and permission to pay interest at that rate would be given only in exceptional circumstances. The basic rate applicable to the majority of local authorities is 3f per cent. It is interesting to note that several of the larger local authorities have recently floated loans at 3 per cent, and 3| per cent., those closely approximating the interest for Government securities. These lower interest-rates, to some extent, are a set-off against the present high cost of capital works. The very heavy increase in the cost of undertaking capital works is, however, having a marked effect both on rating and on the amount of loan proposals, making it increasingly difficult for the smaller boroughs and town districts in particular to achieve the basic services of water-supply and sewerage. The present appears to be an inopportune time for local authorities to undertake works for which there is no immediate urgency. The Board desires to acknowledge the valuable assistance it has continued to receive from the comprehensive reports prepared for its information by the various Government Departments, and to acknowledge also the ready co-operation of the local authorities concerned, which greatly facilitates the smooth administration of the legislation governing local-authority borrowing. B. C. Ashwin, Chairman.

Approximate Cost of Paper. —Preparation, not given ; printing (050 copies), £B.

By Authority: E. V. Paul, Government Printer, Wellington.—1947.

Price 3d.]

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31st March, London. Australia. New Zealand. Total. £ £ £ £ 1931 17,533,425 8,574,529 46,578,082 72,686,036 1935 16,088,525 2,564,693 52,592,240 71,245,458 1940 12,284,225 2,264,220 54,938,525 69,486,970 1941 9,893,025 2,198,211 55,883,451 67,974,687 1942 9,381,825 2,043,718 55,220,447 66,645,990 1943 8,461,325 1,851,273 53,656,498 63,969,096 1944 7,837,225 1,624,458 53,801,145 63,262,828 1945 7,074,925 1,544,382 52,618,630 61,237,937 1946 6,604,725 1,484,40.) 51,936,739 60,025,864