WEDNESDAY, JULY 17, 1991
13
RESOLUTION TO RAISE LIMIT OF INDEBTEDNESS
THE FINANCIAL
SECRETARY,
PIERS JACOBS,
TODAY
THE HON SIR (WEDNESDAY) MOVED A RESOLUTION IN THE LEGISLATIVE COUNCIL TO RAISE THE FOR THE CORRECTIONAL SERVICES STATUTORY LIMIT OF INDEBTEDNESS
MILLION, INDUSTRIES SPECIAL SUSPENSE ACCOUNT FROM $40 MILLION TO WITH EFFECT FROM AUGUST 1.
$80
CONSIDERATION
INFLATION
SET,
AND THE SERVICES
SIR PIERS SAID THE INCREASE TOOK INTO SINCE 1986 WHEN THE PRESENT LEVEL OF INDEBTEDNESS WAS 100 PER CENT INCREASE IN BUSINESS VOLUME OF THE CORRECTIONAL INDUSTRIES.
WAS
BASED ON THE NEXT
HE POINTED OUT THAT THE REVISED STATUTORY LIMIT THE CORRECTIONAL SERVICES DEPARTMENT'S PROJECTED NEEDS OVER FIVE YEARS.
THE REVISED A PRUDENT ADMINISTRATIVE LIMIT, WITHIN LIMIT, WOULD CONTINUE TO BE SET FROM TIME TO TIME, HE ADDED.
FINANCIAL
EXPLAINING THE BACKGROUND, THE CORRECTIONAL SERVICES DEPARTMENT OPERATED A NUMBER KEEP INMATES POURPOSEFULLY OCCUPIED.
STATUTORY
SECRETARY SAID THE
OF INDUSTRIES ΤΟ
AND
AT
THE
WERE SUPPLIED ΤΟ GOVERNMENT THE GOODS AND SERVICES PROVIDED DEPARTMENTS AT THE COST OF MATERIALS USED AND TO QUASI-GOVERNMENT
AT ORGANISATIONS NON-GOVERNMENT DISCRETION OF THE COMMISSIONER OF CORRECTIONAL SERVICES, HE SAID.
COUNCIL, A SPECIAL SUSPENSE
MARKET
PRICES
DECIDED
THE
29. 1986,
A
BY ACCOUNT
ORDINANCE FOR
WAS
RESOLUTION OF
ESTABLISHED THE
THE
LEGISLATIVE UNDER SECTION
OF OPERATION
ARRANGEMENTS, ACCOUNTING
ALL
FINANCE PUBLIC CORRECTIONAL SERVICES INDUSTRIES.
ON JANUARY
30(1) OF THE
"UNDER THE
FOR PAYMENTS
THE THE ACCOUNT,
PURCHASE OF MATERIALS FOR THE INDUSTRIES ARE DEBITED TO AND ALL PAYMENTS MADE BY CLIENT DEPARTMENTS AND ORGANISATIONS FOR THE ARE CREDITED TO THE GOODS AND SERVICES SUPPLIED BY THE INDUSTRIES ACCOUNT, EXCEPT RECOVERIES ABOVE THE COST OF MATERIALS USED WHICH CREDITED TO GENERAL REVENUE,' THE FINANCIAL SECRETARY NOTED.
"
BETWEEN
DEBIT
ARE
||
ENTRIES HE ADDED.
THE
AND CREDIT THE DIFFERENCE REPRESENTS THE STOCK BALANCE, OR THE LEVEL OF INDEBTEDNESS,
WHICH OF
SIR PIERS SAID UNDER CLAUSE 6 OF THE ORIGINAL RESOLUTION ESTABLISHED THE ACCOUNT, THE MAXIMUM CEILING (THE STATUTORY LIMIT)
SUM AS THE INDEBTEDNESS MIGHT NOT EXCEED $40 MILLION OR SUCH LESSER FINANCIAL SECRETARY MIGHT DETERMINE (THE ADMINISTRATIVE LIMIT),
HAD
IN THE GROWTH STEADY
IDUSTRIES SERVICES REACHED
MILLTON $36.5
VOLUME OF OVER THE AS AT
HE NOTED THAT OWING TO THE BUSINESS CONDUCTED BY THE CORRECTIONAL YEARS, THE LEVEL OF INDEBTEDNESS OCTOBER 1 LAST YEAR.
AS BUSINESS CONTINUED TO INCREASE, A REVISION OF THE LIMIT NEEDED IN ORDER TO PERMIT THE GROWTH TO CONTINUE IN ORDERLY SIR PIERS SAID.
WAS
FASHION,
/14