NATIONAL DEBT

Gisborne Herald, Volume LXX, Issue 21112, 4 June 1943, Page 2

NATIONAL DEBT

INCREASE OF £74,000,000 THIS YEAR’S PROGRAMME HOUSING & ELECTRICITY (P.R.) WELLINGTON, June 4. Government borrowings last year were almost entirely for war purposes, according, to the financial statement presented to the House of Representatives last evening' by the Minister of Finance, the Hon. W. Nash. A sum of £3,465,000 was raised for national development purposes, mainly for housing and hydro-electric supply, and to cover exchange on remittances to repay portion of the 1939-45 London loan, while the balance of gross borrowings amounting to £80,000,000 were for war purposes.

Public debt operations last year resulted in a gross increase in the debt of £83,465,000. which sum was obtained from the following sources: Public loans in New Zealand, £28,901,000; national savings, £3,972,000> voluntary interest-free loans, £31,000; memorarir , "'i ,of security agreement with United Kingdom Government, £15,437.000; and departmental issues and Reserve Bank, £35,124,000. Against this gross increase must be offset repayments during the year of £5,038,000. The year thus closed with a net increase of £78,427,000, of which £73,908,000 took place in the Dominion and the balance of £4,519,000 in the United Kingdom.

Departmental issues cover the surplus funds of the Post Office Savings Bank and other State institutions, and owing to the substantial increase, compared with last year’s Budget estimate, of expenditure in New Zealand for both the army and the air force it was necessary to finance the deficit by drawing on the Reserve Bank by means of Treasury bills to the extent ,of a net amount of £13,900,000. New Loans Restricted

As to borrowing for the current financial year, for needs other than those of war, the Government will continue to restrict such loans to the absolute minimum. Nevertheless, there are certain types of national j development works which must oe continued and even increased within the limit of the men and materials available. There are two main classes Of work coming within this category —namely, housing, for which an expenditure programme approaching £4,000,000 is planned for the current year, and the further development of hydro-electricity, for Which Iban provision slightly in excess of £2.000.000 is being made. Housing and hydroelectric development are complementary and are important not only at present, but in the post-war era. The present shortage of electrical energy is well known, and to meet requirements for the contemplated housing programme and also for the expansion of industries in the post-war period it is essential that the construction of hydro-electric generating plants should be pushed forward hs fast as possible. | Allowing for funds in hand, it is 1 anticipated that a national development programme of £6,500,000 will require to be authorised for this year. This is £1,500,000 more than last year's authorisation for the same purpose. This loan programme will be provided from departmental funds, Launch Lost Putting to sea on Saturday night with a sick man aboard, the 26ft. launch Mermaid failed to arrive at Waikokopu from Portland Island. The harbour lights were left burning and a search next morning revealed the boat anchored off the Waikokopu bluff. A relief boat was sent out to bring in the seven passengers, mails anct luggage. The Mermaid was anchored and left. Since then she has not been seen, and it is thought that she dragged the anchor, and drifted. It is unlikely that the sea was rough enough to sink the boat. The launch was owned by Mr. W. Neville and was the only means of access from Portland Island to the mainland, the usual mail boat being under repair. Paper Pulp

At the annual meeting of N.Z. Paper Mills in Dunedin, the chairman said the position regarding raw material supplies had eased as lend-lease pulp was now arriving regularly in sufficient quantities to maintain production.