XN000022-1985-04-17 — Page 8

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1985

+THIS EXPLAINS THE TREATMENT OF THE GOVERNMENT'S EQUITY INVESTMENT IN THE MTRC, WHICH IS NOT IN A FORM WHICH CAN BE EASILY CONVERTED INTO CASH. ÉVEN IF IT WERE, IT SHOULD NOT BE INCLUDED AS AN ASSET IN THE STATEMENT OF ASSETS AND LIABILITIES BECAUSE IT IS INTENDED AS A FERMANENT INVESTMENT AND, THEREFORE, IS NOT AVAILABLE FOR APPROPRIATION BY THIS COUNCIL, HE SAID.

+TO CONCLUDE BY WAY OF CONSOLIDATION 'CASH' WHICH HAS BEEN PREVIOUSLY APPROPRIATED BY THIS COUNCIL TO OTHER FUNDS BUT NOT YET EXPENDED, AND THE RETAINED EARNINGS OF THESE FUNDS, WOULD CLEARLY DEFLECT FROM THE MAIN PURPOSE OF THE STATEMENT OF ASSETS AND LIABILITIES,+ SIR JOHN SAID.

THE FINANCIAL SECRETARY SAID IT WAS ACCEPTED THAT THE CAPITAL WORKS RESERVE FUND WAS TREATED SOMEWHAT DIFFERENTLY IN THIS RESPECT FROM OTHER FUNDS,

+THIS IS BECAUSE FOR FUND MANAGEMENT PURPOSES IT PROVED DESIRABLE FOR ALL TRANSACTIONS RELATING TO THIS FUND TO BE PROCESSED THROUGH THE MAIN TREASURY BANK ACCOUNT.

+ IT IS, HOWEVER, ACCOUNTED FOR AND IDENTIFIED QUITE SEPARATELY ON THE STATEMENTS OF ASSETS AND LIABILITIES AND IS CLEARLY EXCLUDED FROM THE BALANCE AVAILABLE FOR APPROPRIATION, HE SAID.

SIR JOHN SAID A SEPARATE ACCOUNT WAS, HOWEVER, STILL KEPT FOR THE CAPITAL WORKS RESERVE FUND, AS WAS THE CASE FOR THE DEVELOPMENT LOAN FUND, HOME OWNERSHIP FUND AND STUDENT LOAN FUND.

+THESE ARE INCLUDED IN THE ANNUAL REPORT OF THE DIRECTOR OF ACCOUNTING SERVICES AS IS THE STATEMENT OF ASSETS AND LIABILITIES.

+THIS REPORT ALSO PROVIDES AMONG OTHER THINGS A STATEMENT OF OUTSTANDING LOANS MADE FROM REVENUE, A STATEMENT OF ASIAN DEVELOPMENT BANK LOANS TO THIS GOVERNMENT AND A STATEMENT OF PUBLIC DEBT, HE SAID.

MORE MERIT IN INDIRECT TAX SPREAD

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A SPREAD OF TAXATION ON AN INDIRECT BASIS, APPLIED WHERE POSSIBLE TO INDULGENCIES NOT NECESSITIES, HAS MORE MERIT THAN UNTOWARD CONCENTRATION ON FURTHER DIRECT TAXATION.

THIS WAS STATED BY THE FINANCIAL SECRETARY, THE HON SIR JOH. BREMRIDGE WHEN REPLYING TO POINTS ON INDIRECT TAX PROPOSALS IN THE LEGISLATIVE COUNCIL TODAY.

/POINTING OUT