Pago 2.

5.

In commenting on the proposed maxima for four of the Suspenso accounts (which totalled $50,000,000), ny predecessor drew the attention of Government to the Secretary of State's Circular Despatch of 25th November, 1937, in this connection and stated that it appeared generally un satisfactory that this appropriation of the Colony's funds should not be under the control of the Legislature.

6.

In

In the Estimates for 1947-48, provision was gain made under Expenditure Head 35 for the Personal Emoluments of Temporary Staff by block votos without the relevant details of the posts, but expenditure on "Other Charges" was shown under soparate subheads. Examination of the Treasury expenditure vouchers for 1947-48 has revealed a considerable number of cases where items of departmental expenditure have been charged to Suspenso Accounts. These apparent misallocations have been taken up on queries with the Accountant General and his replies are awaited. the Revenue Estimates for 1947-48, provision was again made under Head 5 (D) "Fees of Court or Office" subhoad "Salos Supplies, Trade & Industry Department's receipts" for $654,000 but up to the 31st December, 1947, no revenue was credited to this subhead. In a minute to the Colonial Secretary dated the 3rd October, 1947, my predecessor observed that it was highly desirable that full details of the expenditure of the departint, Personal Bholunate in particular, should be shown in the Colonys Estimates in order that expenditure might be held to be definitely "limited and arranged".

7.

In the Estimates for 1948-49, details have been given of the posts and salaries of the Temporary Staff at footnote (2) to Expenditure Head No.35, and provision has been made again under Revenue Hoad 5(D) "Sales Supplics, Trade and Industry Department's importations" for $1,000,000.

8,

General authority for the department to be run as a comercial concern was conveyed by the Governor in July, 1946, and the Director, Supplics, Trade and Industry Department, was subsequently allowed discretionary authority to "conclude price agreements with distributors". This latter authority was given as a result of a request by my predecessor to be referred to the authority for the Director to fix the terms and conditions of the agreement covering the distribution of the rice ration. In the draft of a despatch to the Secretary of State prepared by the Director, Supplies, Trade and Industry, it was stated that the Director had boon given "full authority to fix selling prices at his discretion (except in the case of rice and flour in respect of which Executive Council is consulted)". The Audit Department has at no time bocn informed that the Director was accorded this authority, nor is it known by whom he was so authorised and in commenting on the draft despatch, I informed the Colonial Secretary that I had not seen a copy of this authority. Further reference to the generally unsatisfactory manner in which arrange- ments have been made regarding the authority for fixing selling prices is given in paragraph 20 below under B. "Marketing and Rice Sections".

9.

In conveying authority for the department to be run as a commercial concern the Governor also authorised salaries to be paid at commercial rates and gave the Director discretionary authority as to recruitment and rates. With a few exceptions for the higher paid posts, all appointments, dismissals, variations in salaries, etc. for the temporary staff have been made by the Director on this authority. It was pointed out to Government by my predecessor that, though the Estimates for Personal Emoluments of the department for the years 1946-47 and 1947-48 did not Cotail posts etc. for the temporary staff and that there may not therefore have been a technical infringement of Colonial Regulation 267 when additions or variations are made by the Director, it is implicit in the Regulations that the Governor should obtain the authority of the Legislature

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