B —6.

Comparison of Post Office Investments in New Zealand, etc. — continued.

PUBLIC DEBT EXTINCTION. The Public Debt Sinking Fund, held by the Superintendent of the State Advances Office, with interest accrued, now amounts to £464,258, and is invested in loans to settlers, workers, and local authorities, as provided by the Public Debt Extinction Act, 1910. The annual sums paid over to the Superintendent from the Consolidated Fund are as follow: 1911-12, £144,885 ; 1912-13, £149,343 ; 1913-14, £151,572. The amount required to be set aside out of revenue for this purpose during the current financial year is £169,404. BANK OF NEW ZEALAND. Negotiations were recently entered into with the Bank of New Zealand with the object of thoroughly revising the working agreement which has existed between the Treasury and the bank since 1893. The new agreement regarding the conduct of our banking transactions will be laid upon the table of the House, and I feel sure it will prove to be satisfactory to honourable members. PUBLIC SERVICE REFORM. The Commissioner and the Assistant Commissioners appointed under the Public Service Act, 1912, have been actively engaged during the year, and the result of their operations to date proves in a practical way the advantages of central control of the Public Service. The classification of officers was completed in August last, and the Board of Appeal constituted under the Act has been engaged for some months in hearing appeals. In his latest report, which has already been laid before Parliament, the Commissioner records many improvements, and reports not only that the efficiency of the Service has greatly improved, but that economies have been effected, or are in process of being introduced, which will result in an estimated saving of £65,000 per annum. At the same time the salaries of officers, particularly in the lower classes, have been considerably improved. A minimum wage for married men in the Public Service has been established. Honourable members will be gratified to learn that Cabinet has decided to permit officers of the Public Service and Bailway Service to occupy positions upon local bodies, and this privilege in some instances has already been taken advantage of. TREASURY REFORMS. During the past year several important alterations have been effected in the Treasury, amongst which I may specially refer to the introduction of a system of paying claims by means of cheques drawn to the order of the payees.

XV

Fund or Account. 1911-12. 1912-13. 1913-14. Ud to Water-power Works Account irrigation and Water-supply Account Railways Improvements Account .. Jutt Railway and Road Improvement Account .joans to Local Bodies Account for Settlements Account Native Land Settlement Account advances to Settlers advances to Workers advances to Local Authorities Mining Advances Elauraki Plains Settlement Account Rangitaiki Land Drainage Account £ £ 50,000 10,000 15,000 £ 165,000 20,000 45,000 2,000 10,000 50,000 525,850 254,500 125,300 80,000 73,000 158,500 37,000 425,000 222,000 5,000 261,000 57,000 5,000 5,000 * £340,300 borrowed prior to 10th July, 1912 (date present 2,094,100 805,300* 896,500 imed officii-). kivernment assi