B.—l TPT. IV Sup. TO 1928],

57

PUBLIC DEBT REDEMPTION FUND. Showing the Net Cost to the Taxpayer of Debt-reduction under the Repayment of the Public Debt Act, 1925. Revenue Account fob the Year ended 31st March, 1928. Dr- £ s. d. Or. £ s. d. To Public Debt Repayment Account— By Interest on the Public Debt Redemption Payments from Consolidated Fund—• Fund — | per cent, on the public debt outstanding Public Trust Office .. .. .. 418.251 2 5 as at 31st March, 1927 .. .. 919,727 410 Discharged Soldiers Settlement Account .. 540,000 0 0 3J per cent, of the amount of the public State Advances Office— debt redeemed to 31st March, 1927 .. 64,111 610 Net earnings .. .. .. 116,828 11 8 3J per cent, of the amount of the public Accrued to 31st March, 1928 .. .. 34,671 2 10 debt cancelled during the year com- Due and unpaid at 31st March, 1928 .. 9,357 7 4 puted from dates of redemption .. 9,925 17 4 Excess of expenditure over revenue for Reserve for interest to be written off .. 220,000 0 0 the year ended 31st March, 1928 .. 94,656 4 9 £1,213,764 9 0 £1,213,764 9 0 £ s. d. £ s. d. To Balance brought down .. .. .. 94,656 4 9 By balance .. .. .. .. 434,656 4 9 Interest due and unpaid for previous years written off on account of Discharged Soldiers Settlement losses .. .. 340,000 0 0 £434,656 4 9 J £434,656 4 9 Note.—lncluded in the net earnings of the State Advances Office is an amount of £21,748 10s. 6d. which had not been paid to the Consolidated Fund by 31st March, 1928. Balance-sheet as at 31st March, 1928. Liabilities. £ s. d. Assets. £ s. d. Public Debt Redemption Fund .. .. 23,125,644 10 6 Investments in— Reserve for interest to be written off .. 220,000 0 0 Public Trust Office .. .. .. 7,966,68811 2 Treasury Adjustment Account .. .. 478,684 14 11 Discharged Soldiers Settlement Account .. 11,900,000 0 0 State Advances Office .. .. .. 3,258,955 19 4 Interest accrued— State Advances .. .. .. 34,671 2 10 Interest due and unpaid— Discharged Soldiers Settlement Account .. 220,000 0 0 State Advances Office .. .. .. 9,357 7 4 Excess of expenditure over revenue .. 434,656 4 9 £23,824,329 5 5 £23,824,329 5 5 A. D. Park, F.1.A.N.Z., Accountant to the Treasury. I hereby certify that the Revenue Account and Balance-sheet have been examined and compared with the relative books and documents submitted for audit, and correctly state the position as disclosed thereby, subject to the above departmental note. The following comment is appended: Interest due by the Discharged Soldiers Settlement Account in respect of capital moneys advanced to that account (£13,500,000) has been credited on the full amount advanced, whereas such capital moneys are, in accordance with a ruling of the Crown Law Office, reducible in terms of section 8 (1) (b) of the Repayment of the Public Debt Act, 1925, as amended by section 21 of the Finance Act, 1927 (No. 2) by any amounts lawfully written ofl (whether before or after the commencement of the 1925 Act) by virtue of the operations of the Discharged Soldiers Settlement Acts. The amount of such interest is not therefore in accordance with the existing law. The Treasury advises that it is its intention to have the Act amended so as to obviate the necessity for this comment in future. —G. F. C. Campbell, Controller and Auditor-General.

B—B.8 —B. 1 [PT. IV SUP, IO 1928