PUBLIC ACCOUNTS

Otago Daily Times, Issue 21981, 16 June 1933, Page 5

PUBLIC ACCOUNTS

THE COST OF EXCHANGE In an interview on Wednesday the Minister of Finance (Mr J. G. Coates) stated that, in order that the public might not be misled, he wished to correct a statement that the additional charges due to the 25 per cent, exchange for the final two months of the year amounted to not Jess than £840,000. “This is incorrect,” the Minister said, “as the aditional cost to the Budget arising out of the rise in the rate of exchange was £470,000 only. It was stated in my explanation of the results for the year that one section of the permanent appropriations exceeded the estimate by £370,500 ‘ by reason of the additional exchange on London purchased under the Banks Indemnity (Exchange) Act during the final quarter of the financial year.’ Later on it was explained that the actual cost of exchange purchased under this Act was £470,000. This amount was charged against revenue under the permanent appropriations, but was partly offset by savings on other items, thereby reducing the net excess to £370,500. The £840,000 referred to in the statement was apparently obtained by adding the real cost of purchasing the aditional exchange, viz., £470.000, and the net excess over the estimates of this section of the accounts. viz., £370,500. It will thus be clear that in the £840.000 the cost of the additional exchange was duplicated.”