§ Mr. MAXTONasked the Secretary of State for Dominion Affairs how much money has been paid from the British Treasury in interest to bondholders of Newfoundland stock since the establishment of the Government by commission; and whether any effort has been made by the commission to convert the stock to lower interest-bearing securities?
Mr. M. MacDONALDThe payment of interest on Newfoundland Government Securities is of course made by the Newfoundland Government itself. Since the establishment of the Commission of Government in February, 1934, an annual grant has been made to the Newfoundland Government from the United Kingdom Exchequer in aid of the general expenses of administration including the service of the public debt. The total amount issued by way of grant-in-aid since that date is approximately £1,055,000. The debt charges of the Newfoundland Government during the same period amounted to approximately £1,800,000. As regards the second part of the question, almost the entire public debt was converted in 1934, under the arrangements authorised by the Newfoundland Act, 1933, into a new sterling stock guaranteed by the United Kingdom and bearing interest at 3 per cent., with a resulting reduction in interest charges of about £400,000 a year.