8.—9.

1936. NEW ZEALAND.

PUBLIC TRUST OFFICE (REPORT OF THE) FOR THE YEAR ENDED 31st MARCH, 1936.

Presented to both Houses of the General Assembly in accordance with Section 47 of the Public Trust Office Amendment Act, 1913.

Pursuant to section 47 of the Public Trust Office Amendment Act, 1913, I have the honour to lay before Parliament the attached report on the working of the Public Trust Office for the year ended 31st March, 1936. 1. The new business reported for administration during the year was of a total value of £6,675,965, representing the aggregate value of 2,719 estates and funds, as compared with the corresponding total of £6,284,883 for 2,980 estates and funds during the preceding year. It will be seen that the figures for the new business have been well maintained. 2 The aggregate value of the estates and funds under administration has shown a slight decline from £60,706,016 to £60,660,310, and there has been a decrease in the number of estates and funds from 20,264 to 19,123. This, however, is due to two special factors. 3. Firstly, in connection with the conversion of local bodies' loans under the Local Authorities Interest Reduction and Loans Conversion Act, 1932-33, where the Public Trustee was both lender and Sinking Fund Commissioner he agreed to apply the sinking funds in reduction of the loans when they were converted, and in other cases he agreed to release out of the sinking funds the amounts required to meet the expenses of conversion and discharge the premiums which became payable to the debenture-holders. The amount held by him to the credit of the sinking funds of local authorities was through this cause greatly reduced. Furthermore, many of the sinking funds relating to the loans converted were amalgamated, so that in place of separate sinking funds for each of the loans raised by the local authority there are now in most instances only the one sinking fund for the local authority or, at the most, only a few such funds. So the number of separate accounts was also reduced. 4. The second factor was the limited extent to which under the prevailing financial conditions moneys were accepted by the Public Trustee for investment on investment agency in the Common Fund, the amount held under this heading being substantially reduced by the repayment of the investment agencies on maturity. 5 It is estimated that but for the operation of these factors the aggregate business would have shown an increase over the past year of approximately £750,000.