B.— 6.

THE PUBLIC DEBT. On the 31st March last the gross public debt stood at £62,191,040; at the close of the preceding year the amount was £59,912,000, showing an increase of £2,279,040 for the twelve months. The net public debt shows an increase of £2,266,839 for the same period. Over two millions and a quarter of increased debt for the year is undoubtedly a large sum, but I am satisfied that honourable members having the advancement and welfare of the colony at heart will not find fault when the additional loan items are explained to them, which I proceed to do :— For public works we raised £1,000,000, and for the improvement of our working railways £197,660. For the purpose of closer settlement, £607,750. For advances to local bodies, to enable them to improve their roads, build bridges, and attend to their hygienic requirements, £151,000. For advances to settlers, £210,000. The above sums amount to £2,166,410, and, with the exception of £1,000,000 for ordinary public works, the money borrowed should be deemed to be directly remunerative. Some small items, such as £1,117 New Zealand Consols, £65,000 for sinking-fund accretions, and £46,513 increase arising out of conversion operations, make up a further total of £112,630.

Public Debt, Reproductive and Non-reproductive, as at 31st March, 1906. Approximate.

IV

;eproi luclive. [on-reproi lud jive. Public Debt up to 1870,— Maori War, exclusive of provincial charges and losses sustained Land purchases Immigration Railways ... Lighthouses .. .. .. • Telegraphs Roads, surveys, &e. Charges and expenses of raising loans Miscellaneous £ £ 2,357,000 306,000 314,000 350,000 47,000 139,000 1,487,000 583,000 1,907,516 795,000 6,695,516 Public Debt, 1870 to 1891,— Defence Land purchases Immigration Railways LighthouseB and harbours Telegraphs Roads and bridges Provincial liabilities Goldfields and coal-mines Publio buildings Other publio works Deficiencies in revenue Charges and expenses Loans to local bodies Miscellaneous 1,240,000 14,230,000 630,000 1,638,000 2,145,000 437,000 3,619,000 786,000 571,000 1,800,000 3U,000 1,982,000 1,054,000 325,000 508,834 16,425,000 14,914,834 Public Debt, 1891 to_1906 — Land purchases Railways Roads and bridges Loans to local bodies Advances to Settlers New Zealand Consols deposits Bank of New Zealand preference shares.. Coal-mines Telegraphs Goldfield development.. Charges and expenses Inorease by conversion Miscellaneous 5,619,016 6,340,214 2,238,100 3,410,000 476,851 500,000 140,000 195,000 2,315,000 3^781 415,000 250,000 727,621 730,107 4,437,728 18,922,962 Total 36,142,962 £62, r 26,048,078 J 11,040 Debt on 31st March, 1906