ALA
5 -
34-
substantial sumc by way of profits will fall to be transferred to general revenue in due course. I propose, subject to your approval, that the certificate of Messrs. Lowe, Bingham and Matthews as to the accuracy of these accounts should be accepted as adequate, but the Director of Audit will naturally have full access to all accounts if the burden of his work should allow him time to carry out any investigations.
19.
In the preceding paragraphs I have dealt with the main criticism of the Director of Audit's Report, which is to the effect that Sir Mark Young acted without authority in granting permission to the Director of Supplies, Trade and Industry to continue to operate his Department on a commercial basis, and, as a necessary consequence, to maintain Suspense Accounts. This criticism appears to be. justified, and I much regret that I have not had an earlier opportunity of bringing all the facts to your notice. I now submit for your approval the proposals in paragraph 5 of the Financial Secretary's Memorandum, that the Suspense Accounts should be regrouped as indicated. I also request your approval for continuance of the existing arrangements for financing trade with Japan by means of the accounts maintain- ed with the Hong Kong and Shanghai Banking Corporation for so long as this Colony remains outside the Overall Payments Agreement.
20.
As indicated in the Memorandum by the Financial Secretary, it is without enthusiasm that I view the continued carrying on of commercial dealing by a department of Government. Nevertheless, for so long as world controls continue, and for so long as certain branches of trade must necessarily be handled on a Government-to-Government basis, I fear that trading by Government must remain. I propose that the Director should continue to have a general discretion, subject to an overall control by Government, to fix selling prices so as to show a moderate profit on all goods other than the absolute necessities of existence such as rice and flour, for which Government's specific approval must be required. In point of fact the policy in respect of essentials has been to sell at the lowest price which will cover costs, and under present world conditions, as you are aware, there is little option as to buying prices. I feel that discretion will also have to be allowed the Director in regard to the volume of his purchases, subject to the overriding consideration that the limits of the Suspense Accounts be not exceeded. Apart from the Japan trade, in which his function is rather that of agent than of principal, he purchases with a view to meeting the essential require- ments of the Colony, and he is the officer best qualified to judge what those requirements may be. I have had under consideration the question of requiring him to prepare and submit for approval in advance an annual programme, but I feel that any such programme would have little value, and might indeed be misleading.
21.
The question of the authority of the Director of Supplies, Trade and Industry to recruit staff and to pay salaries at commercial rates is one that is not of such vital importance. When my predecessor granted this authority, he was, I am convinced, adopting the only possible course if a complete breakdown in administration were to be avoided. But in actual fact, the Director very soon ceased to act entirely on his own authority, and the position now is that he seeks authority for all appoint- ments and salary changes, your approval being also sought where required. With the exception of the Director himself, one Executive Officer and seven clerks, all members of the
No comments yet.
Private notes are available after approval.