XN000022-1976-02-25 — Page 14

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WEDNESDAY, FEBRUARY 25, 1976

GROWTH IN DEPARTMENTAL OTHER CHARGES HAS ALSO BEEN CUT DOWN TO ENABLE THE MAXIMUM ADVANCES TO BE MADE IN CERTAIN SELECTED AREAS OF EXPENDITURE AND TO RETAIN THE COST EFFICIENCY BENEFITS OF TWO YEARS OF FINANCIAL STRINGENCY.

SUBVENTED ORGANISATIONS WILL RECEIVE A QUARTER OF ALL RECURRENT EXPENDITURE ($1,312 MILLION); COMPARED WITH 26 PER CENT ($1,200 MILLION) IN THE 1975-76 REVISED ESTIMATES.

MR. HADDON-CAVE SAID THE DIRECTOR OF AUDIT WAS NOW PAYING GREATER ATTENTION TO THE +VERY CONSIDERABLE SUMS OF PUBLIC MONEY+ PLACED AT THE DISPOSAL OF SUBVENTED ORGANISATIONS: +1 CAN SEE NO REASON WHY THE ORGANISATIONS CONCERNED SHOULD NOT BE SUBJECT TO THE SAME DEGREE OF PUBLIC ACCOUNTABILITY AS THAT APPLYING TO GOVERNMENT DEPARTMENTS,+ HE ADDED.

HE STRESSED THAT FINANCIAL ADMINISTRATION OF THE ORGANISATIONS SHOULD BE CONDUCTED AT THE HIGHEST POSSIBLE LEVEL OF EFFICIENCY, AND HE FULLY SUPPORTED THE DIRECTOR OF AUDIT IN BRINGING TO ATTENTION ANY POSSIBLE CASES OF WASTE, EXTRAVAGANCE OR MISMANAGEMENT.

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+FINALLY THE COST OF OUR PUBLIC DEBT AND OF DEFENCE WILL LOOM-LARGER IN OUR AFFAIRS FROM NEXT YEAR THAN HITHERTO, HE SAID.

TAKING BOTH RECURRENT AND CAPITAL EXPENDITURE TOGETHER, THE COST OF OUR PUBLIC DEBT WILL INCREASE FROM $18 MILLION IN 1975-76 TO $43 MILLION NEXT YEAR (FROM 0.3 PER CENT OF TOTAL EXPENDITURE TO 0.6 PER CENT), WHILE DEFENCE COSTS WILL INCREASE FROM $101 MILLION TO $215 MILLION (FROM 1.6 PER CENT OF TOTAL EXPENDITURE TO 3 PER CENT).

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