ACCOUNTANCY OF LOANS

Poverty Bay Herald, Volume LIX, Issue 17956, 7 December 1932, Page 5

ACCOUNTANCY OF LOANS

ADMINISTRATION OF MONEYS SAVINGS PROPOSED IN BILL Considerable savings in the administration of loan moneys are expected to result under the New Zealand Loans Consolidation Bill, which it is intended to introduce in the House of Representatives shortly. Questioned regarding the measure, tlie Prime Minister, the Rt. lion. G. Y\. Forbes, said that it would provide for the merging of separate accounts and would result in considerable savings by simplifying . the accountancy of loans. hi the light of Mr. Forbes’ brief explanation, it is presumed the bill will relate to a matter mentioned in the first report of the National Ehpenditure Commission. Attention ; was then drawn to the .fact that, the public account consisted of a. number of separate funds and accounts, in addition to the .'consolidated fund and the public works fund. Those separate accounts were created 1 mainly for purposes of capital expenditure and warn established along with various do velopmental schemes and trading active tie's; - . The Treasury has urged that the simplification of those accounts would lead not only to economy in administration, but would also enable the Treasury to work 011 a smaller bank cash balance. The commission recommended the abolition of separate accounts that were no longer required and suggested that legislation to that .effect should be promoted. “The Treasury and audit officials, are in accord as to the desirability of simplification,” said the report. “This could largely be effected by abolishing the permanent . appropriations within tin separate accounts, as has been recommended with regard to the consolidated fund. Further simplification could be effected bv abolishing such separate accounts as" might no longer be required and by treating the matter generally on the' lines laid down by. recognised authorities on Governmental account-