PUBLIC WORKS

Evening Star, Issue 20254, 15 August 1929, Page 3

PUBLIC WORKS

KTSwi Basins Bwiwne* ✓ SOUf’D PSiKSSPLE FOLLOWED ; fFuori On: pAItUAHESTAIti UePOKXEI!.] W hfi/i J XGTON August 14. As a n sul <it the criticisms of the Aiuhlor-doner. in regard to the system «l rebovnig the capita! account I tin Fnlit.v Works from interest arge; durine the oo istructioii period, Mr Biacig _(Motueka) ivouc.-red the f-h line Munsiei to arrange for the Pulike -Account Ci'mmittco to investigate the accoiniu oi all hyd re-elect rio works con.strueic! sinet April I, 1019, out of loan ilium! in the Public Work's fund game a. purpose account, so that the true capital cos' ol such, undertakings might in- determined. v Then ts ■ n accountancy principle which preu-ii. the pay inert of iuterst oj const rn I'm out 'of revenue,” replied Si Joscp ■ Ward, ‘ and, where ■irciunstancc permit it is not unusual to eve provi-P- capital out of revenue, as has bee- dor.o in the case of many works oon n ‘toil out of the Public 'works land To pav interest m all cares tit lag construction period oaf ol loan moneys would depreciate the omiubtr s credit on the worlcPs money market, mid also would, Giving to the varying periods occupied in completing works (occasioned hy changes of policy) result in over-capitalisation. As regard" the State electric supply, depreciation and reserve provision exists to'- invest!.ir the whole, or portion of the Mime in the schemes This is noth unusual, and proper care is exercised to keep liquid whatever proportion oi tin fund is ■ necessary for immediate requirements. This practice results i rod - cod borrowing. As it is a snmide finance'policy to continue, to pu v such interest from revenue, it is not t-ofisidcrr. 1 necessary to refer the matter tc the Public Accounts Committee.''