dealt with here some months ago, has

Suice, under pressure of other work, been Entirely werlooked

I attach a separate minute

dealing in detail with the pouits

raised.

Jas for DCA

30/10

hir Collins

ar

line

J

annexed

? Reph minute. I apologize ala

regards.

this seems

the

me

win for code. difficult

Tr. à dif

tot.

business in view of the varying

cives grace

Colmies o shi

ignore the paint.

Al ma

Aer

1/11

RI

Mr Stabbs

77

With reference to the enquiry in para: 2 of the Govr's despatch, the interpretation of the term "unallocated stores" given in para: 3 of the Board's covering minute

of 10 November is correct. Speaking generally the Standard Stock of unallocated stores may be regarded as limited to stores of a general character required for ordinary public works In certain cases materials and stores of a special kind will be required for specific works of an extraordinary character, the cost of which will have been duly authorised by the S. of S, and in these instances a temporary excess over the standard stock, pending the. transfer of: their cost to the debit of the particular work, may be regarded as being covered by the S. of S's authority for the work. The Board deals further with the following points specifically referred to them by the Govr: (see para: 1. of despatch)

^

(a) Limit of $200,000. The Board are of opinion that a considerable reduction may be safely made in Standard

He

Stock limit provisionally fixed on H.K. 19129/11, and even suggest so low a maximum as $75,000 subject to certain proposals which mainly concern the C.A. I should say that as a final figure to be worked down to, the sum mentioned on p. 2 of Report,e,$100,000, is a reasonable one.

(b) As to reduction of present stock, it is recommen- ded by the Board

(1) that certain obsolete stores to the approx: value of $33,000 should be sold. This should be done.

That (2) Plant temporarily out of use, of about $7,000

should value and carried on stock, be written down to market

value and transferred to a Plant Account. I see no

objection to this course.

A

It is further proposed to write down new (i.e. unused) stores on a fixed basis of depreciation of 5% for every

year

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