8.—6

V

months' notice by advertisement oi its intention to pay them off. The Government had long contemplated the conversion of these five-thirty debentures, amounting to .£7,250,000 —the five years from date of issue having expired—■ and the Stock Agents were empowered to convert them, and were only waiting for a favourable opportunity to do so. They determined, therefore, to'cornbine in one large operation the two classes of debentures, amounting in all to £9,082,000 _; not, however, by the compulsory ealling-m of the five-thirty debentures, but by giving to the holders the option of conversion on certain terms. Accordingly in September, 1883, an announcement was made public through the Bank of England that up to the 30th November applications for conversion would be received in respect of the following debentures: £6,000,000 4J per cent, five* thirty debentures at £103 of stock for every £100 in debentures; £1,250,000 5 per cent, five-thirty debentures at £103 10s. of stock; and £1,832,000 5 per cent, debentures at £100 of stock. The result of this invitation was that the following debentures were brought in and converted, namely: £3,053,000 4J per cent.' five-thirty debentures, £503,700 5 per cent, five-thirty debentures, and £1,832,000 5 per cent, debentures ; making a total of £5,388,700 converted out of £9,082,000. Full accounts have not yet been received from the Stock Agents, but it is calculated that, after setting aside a sufficient sum by way of sinking fund to cover the increase of debt arising from the conversion, a sum of about £28,800 will be annually saved to the colony by the reduction of the rate of interest —a result which I think the Committee will agree with me may fairly be characterized as highly satisfactory. I may inform the Committee that the whole of the debentures for £1,832,000 were held on behalf of the Sinking Funds of New Zealand Loans, the Post Office Savings Bank, the Government Insurance Department, the Public Works and other Funds, and that the right to place immediately £500,000 of the 4 per cent, inscribed stock on the London market was reserved when the proposed conversion was announced, an undertaking having been given not to sell the" balance before the third instalment of the loan of three millions was raised. I may further state that the Government have received from the Agent-General advice by cable of the sale of stock to that amount on favourable terms. ■ PUBLIC WORKS FUND. For the year ending the 31st March last Parliament voted out of the Public Works Fund £2,014,757, exclusive of the vote for Land Purchase, £77,000. The actual expenditure was £1,278,710, exclusive of the expenditure for land purchase, amounting to £24,480; and also exclusive of the expenditure under "The Eoads and Bridges Construction Act, 1882," amounting to £106,398, for which, as honourable 'members know, no vote is taken in the annual appropriations. The chief items of expenditure were —Eaiiways, £661,846; roads, £222,243"; public buildings, £164,375; immigration, £107,041; and other services, £123,202. A return of this expenditure will be found in a table annexed to this Statement. The liabilities outstanding at the end of the year, exclusive of those for land purchase, amounted to £997,443, which, added to the sum. expended, £1,278,710, gives a total of £2,276,153, as against £2,014,757 voted for the year. In speaking of the expenditure out of the Public Works Fund, and the liabilities outstanding at the end of the year, I have excluded both the expenditure and liabilities in respect of land purchases, and also those incurred under the Eoads and Bridges Construction Act. The land purchase liabilities on the 31st March last, as shown by the return laid upon the table of the House according to law, amounted to £285,400, as against £309,299 shown at the conclusion of the previous year; but, as honourable members are aware, only £200,000 was set apart under " The Three Million Loan Act, 1882," for purchase of Native land, the House having approved of the abandonment of such of the proposed purchases as the Government did not think it desirable to*proceed with. Of this £200,000, £56,400 has been spent up to the 31st March last; and it is estimated that, by abandoning such purchases as I have referred to, the balance of £143,600 will be sufficient to cover the liabilities. Out of £350,203 standing to the credit of the fund

Table No. 1. Table No. 6.