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a 
Sinking Fund Scheme. 
The main provisions of the sinking 
fund schemes are:— 
(a) A sinking fund of 7s. 6d. 
per cent. per annum for 58 years 
on the nett debt at 1st July, 1927; 
to this sinking fund the Common- 
wealth contributes 2s. 6d. per cent. 
and the States 5s. per cent. 
(b) A sinking fund of 10s. per 
cent. per annum for 53 years on 
all new debt raised after 1st July, 
1927; to this sinking fund the 
Commonwealth to contribute 5s. 
per cent. and the States 5s. per 
cent. 
(¢) A contribution of 4% per 
cent. per annum on debt redeemed 
out of the above contributions 
(contributed by the States). 
Contributions commenced from Ist 
July, 1927, in the case of all States 
except New South Wales, which State 
commenced on lst July, 1928. . 
On the nett debt at 1st July, 1927 
the annual contributions are: — 
ES] 
Payable by Commonwealth 802,000 
Pavable by States ... 0 1,604,000 
2.406.000 
Control. 
The management of funds is in the 
hands of the Commonwealth National 
Debt Sinking Fund Commission. 
Sums Available for Redemption. 
The Financial Agreement was not 
‘atified until August, 1928, but the 
sinking fund contributions were pay- 
ible as from 1st July, 1927. 
The amount available for redemp- 
tion of debt during the current year 
is £4,508,000, including a balance of 
approximately £1,900,000 on account 
of contributions for 1927-28. 
This sum will be applied in the 
following manner :— 
o 
London— 
Purchase and re- 
demption of 
State securities. 
Purchase of Com- 
monwealth se 
curities issued ox 
behalf of the 
States ... es 
1.063.000 
166,000 
— 1.929.000 
New York— 
Purchase of Com: 
monwealth se- 
curities issued on 
behalf of the 
States ... vee 
Aunstralia— 
Repurchases and 
redemptions on 
maturity wn 
Special payments 
under existing 
contracts gu 
121.000 
2.743.000 
410.000 
4.505.000 
Application of Funds. 
Broadly speaking, funds are being 
applied in Australia, London and 
New York:— 
(a) in meeting obligations under 
existing contracts; 
(b) in repurchases on the 
market ; 
(¢) in redemptions on maturity. 
Redemption of Combined Overseas 
Debt 
The total funds that are being 
applied this year in redemption of 
overseas debts (Commonwealth and 
State combined) amount to approxi 
mately £3,700,000 — (Commonwealts 
£2,000.000. State £1.700.000). 
(4/29) (4492r—%) Wt. 
250 5/29 H, St G.3