THE PUBLIC DEBT.

Taranaki Daily News, Volume LIII, Issue 90, 25 July 1910, Page 8

THE PUBLIC DEBT.

I'KI.MK .MIMSi'KU's siNMXu FUND THE HILLDE.scKIISEI). "An Act to authorise tlu» creation of .Sinking Kniuls for tin- Extinction of the Public Debt of New Zealand" is the exP':niiit'iry -her :i<!e ~;' ..l„. i> u i,!j P j e i,t Kxtinetion Hill, introduced on Friday by the Prime .\liiiisier. A Board is to he constiluted for tho adniinisi ration ot ilie sinking funds, consisting of the Commissioners of the Public Debts Sinking Funds established by section 47 of the New Zealand Loans Act, 11I0S, with the addition ot the Superintendent of the State Guaranteed Advances Department. The Minister of Finance or his deputy shall be chairman of the board. ■Within thirty days after the end of each financial year the Controller and Auditor-General shall furnish the Minister with a certificate showingfa) The total amount of public debt of New Zealand; (b) The sum which, if invested eacli year at compound interest at four pounds per centum per annum (or such rate of interest as may be de'termitied under the provisions of section 10 of this Act), would in seventy.five years equal such amount. After March 31, 1915, the interest, instead of being calculated at £4. per cent, shall be the actual average net interest earned by the funds (turmg tho preceding three years. When the Act comes into operation the payments on account of the war and defence loans sinking fund shall cease. INVESTMENT OF FUNDS. 4 The new sinking fund shall be invested in loans to settlers, workers, «nd to local authorities under the provisions of the New Zealand State-guaranteed Advances Act, sub-loans to be granted for any period not exceeding ten j-ears in the case of loans to settlers or workers, or forty years in the case of local authorities, or may be granted on the instalment system repayable in any term not exceeding 36% years. No part of such moneys shall at any time be invested in New Zealand Government securities, and it is provided that all monevs paid to the Superintendent and all accumulations thereon snail be held on trust for the repayment of the public debt, and for no other purpoise whatever. If the whole of the accumulated funds cannot he invested as mentioned above the surplus may, under the direction of the board, be applied to the purchase, at or below par, for cancellation of any stock or debentures charged upon the consolidated revenue. When loans hava thus been repaid a statement shall bo made showing the annual interest thus saved and the annaal amount required thereafter to preserve the growth of the sinking fund. The expense* of administering the Act are to be paid out of the Consolidated Fund, an annual statement shall be made regarding the fund to Parliament, and it is provided that the moneys shall he kept apart from other moneys of the State-guaran-teed Advances Office in s>. branch to be called the Public Debt Sinking Funds Branch.