B—l7

The difference (£9,956,332) 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 It will be noted that, although additional loan works are being undertaken continuously, the gross local-authority debt is now steadily declining, a fact largely attributable to the policy of the Board of requiring the repayment of loans within the estimated life of the assets to be acquired.

The domicile of local-authority debt has been as follows

Local bodies have shared fully in the benefits from the general fall in interest-rates ovet the last few years. Furthermore, the improvement in the status of local-body securities since the Local Government Loans Board was established is reflected in the narrowing of the margin between the rates for these securities and the rates for Government securities. The conversion of local-authority loans effected in 1934-35 generally brought interest-rates for these securities down to per cent., but the current market rate is 3J per cent., with some local authorities raising loans at an even lower rate. The present rate has probably never been equalled and the low interest charges have enabled substantially lower rates to be struck by local authorities. The Board desires to acknowledge the valuable assistance it received 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 (510 copies), £6

By Authority: E. V. Paul, Government Printer, Wellington. —1946.

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