WEDNESDAY, JANUARY 29, 1956
21
SPECIAL SUSPENSE ACCOUNT APPROVED
****
A RESOLUTION SEEKING TO ESTABLISH A SPECIAL SUSPENSE ACCOUNT TO BE KNOWN AS THE CORRECTIONAL SERVICES INDUSTRIES SPECIAL SUSPEC ACCOUNT FOR THE PURPOSE OF OPERATING THE CORRECTIONAL SERVICES INDUSTRIES WAS ADOPTED IN THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY).
MOVING THE RESOLUTION, THE FINANCIAL SECRETARY, THE HON SIR JOHN BREMRIDGE, SAID THE ACCOUNT WOULD NOT AT ANY TIME BE IN DEBT TO AN AMOUNT EXCEEDING $40 MILLION WITHOUT THE FURTHER AUTHORITY OF THE LEGISLATIVE COUNCIL BEING OBTAINED.
SIR JOHN SAID THE CORRECTIONAL SERVICES DEPARTMENT OPERATEL A NUMBER OF INDUSTRIES TO KEEP INMATES PURPOSEFULLY OCCUPIED.
HE SAID: THE GOODS AND SERVICES PROVIDED BY THE INDUSTRIES ARE SUPPLIED TO GOVERNMENT DEPARTMENTS AT THE COST OF MATERIALS USED AND TO SEMI-GOVERNMENT AND NON-GOVERNMENT ORGANISATIONS AT MARKET PRICES DECIDED AT THE DISCRETION OF THE COMMISSIONER OF CORRECTIONAL SERVICES, PROVIDED THAT AT LEAST THE COST OF MATERIALS USED IS RECOVERED.
+PAYMENTS FOR THE PURCHASE OF INDUSTRIES MATERIALS ARE CURRENTLY CHARGED TO THE GROSS PROVISION UNDER HEAD 30 CORRECTIONAL SERVICES DEPARTMENT SUBHEAD 236 CORRECTIONAL SERVICES INDUSTRIES MATERIAL. WHICH HAS A CREDIT ITEM TO FACILITATE THE RECOVERY OF THE COST OF MATERIALS FROM CLIENT DEPARTMENTS AND ORGANISATIONS.
+RECOVER IES ABOVE THE COST OF MATERIALS ARE CREDITED TO GENERAL
REVENUE.
+THE DIFFERENCE BETWEEN THE GROSS PROVISION AND THE CREDIT ENTRIES IS THE NET PROVISION FOR THE SUBHEAD.+
AS WITH UNALLOCATED STORES CONTROLLED BY THE DIRECTOR OF GOVERNMENT SUPPLIES, SIR JOHN SAID THE NET PROVISION MIGHT BE TEMPORARILY EXCEEDED FOR OPERATIONAL REASONS AND CONTINGENCIES WARRANTS HAD TO BE ISSUED BY HIN TO AUTHORISE SUCH EXCESS PAYMENTS.
+IN LINE WITH THE PROPOSAL FOR UNALLOCATED STORES, IT IS THEREFORE PROPOSED TO ESTABLISH A SPECIAL SUSPENSE ACCOUNT UNDER SECTION 31 OF THE PUBLIC FINANCE ORDINANCE FOR THE PURPOSE OF OPERATING THE CORRECTIONAL SERVICES INDUSTRIES,+ HE SAID.
SIR JOHN SAID ALL PAYMENTS FOR THE PURCHASE OF MATERIALS FOR THE CORRECTIONAL SERVICES INDUSTRIES WOULD BE DEBITED TO THE ACCUT AND ALL PAYMENTS MADE BY CLIENT DEPARTMENTS AND ORGANISATIONS (EXCLUDING RECOVERIES ABOVE THE COST OF MATERIALS USED) FOR Tri GOODS AND SERVICES SUPPLIED BY THE INDUSTRIES WOULD BE CREDITED 7: THE ACCOUNT.
+THE DIFFERENCE BETWEEN THE DEBIT AND CREDIT ENTRIES WILL REPRESENT THE STOCK BALANCE, OR THE LEVEL OF INDEBTEDNESS.
+RECOVER IES ABOVE THE COST OF TO BE CREDITED TO GENERAL REVENUE,
MATERIALS USED WILL CONTINUE
HE ADDED.
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