WAR FINANCE

Otago Daily Times, Issue 24685, 14 August 1941, Page 8

WAR FINANCE

AUDITOR-GENERAL’S COMMENT

REPLY BY MR HAMILTON (0.C.) WELLINGTON. Aug. 13., “ Inquiries are being made with a view to improving the method of strengthening the check on the handling of army stores.” said Mr A. Hamilton, a member of the War Cabinet, ‘during the debate on the Finance Bill in the House of Representatives to-night. Mr Hamilton referred to the criticism by the Auditor-general in his annual report to Parliament of certain unsatisfactory methods in the handling of army stores. Another point of criticism raised by the Auditor-general was that the cash balance of £4,428,548 brought forward into the War Expenses Account at March 31, 1941. was not sufficient to meet the commitments already entered into with the Imperial Government, but not yet come to charge. Mr Hamilton said it was necessary to take note of the comments of the Auditorgeneral. “So far as the statement goes it may be correct, but is it legitimate criticism? ” Mr Hamilton asked. “ I greatly doubt it. Our public accounts, -s a rule, record only receipts and payments without noting outstanding assets or liabilities.” Mr Hamilton said he wished to point out that much of the expenditure had been made on defence equipment in New Zealand. This was a valuable and. if necessary, a realisable asset. Furthermore, a sum of £3,647,992 had been provided for amortisation of debt. This was a pretty good sinking fund. “ The war debt incurred to March 31, 1941. amounted to £21,238,537,” Mr Hamilton said. “The sinking fund provision for that period is. therefore over 17 per cent,”