WEDNESDAY, JANUARY 24, 1936
22
SPECIAL FUND ON ALLOCATED STORES
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THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY) ADOPTED A MOTION TO ESTABLISH A SPECIAL SUSPENSE ACCOUNT UNDER THE PUBLIC FINANCE ORDINANCE FOR THE PURCHASE OF UNALLOCATED STORES BY THE GOVERNMENT.
MOVING THE MOTION, THE FINANCIAL SECRETARY, SIR JOHN BREMRIDGE, SAID THE DIRECTOR OF GOVERNMENT SUPPLIES PURCHASED UNALLOCATED STORES WHICH WERE HELD IN STOCK PENDING SUBSEQUENT SALE OR ISSUE TO GOVERNMENT DEPARTMENTS OR SUBVENTED ORGANISATIONS TO TAKE ADVANTAGE OF THE ECONOMIES OF BULK PURCHASE AND TO ENSURE UNINTERRUPTED SUPPLIES TO DEPARTMENTS.
+THESE INITIAL PAYMENTS ARE CURRENTLY CHARGED TO THE GOVERNMENT SUPPLIES DEPARTMENT HEAD OF EXPENDITURE, AND PAYMENTS MADE BY GOVERNMENT DEPARTMENTS ON ISSUE TO THEM OF UNALLOCATED STORES ARE OFFSET AGAINST THIS EXPENDITURE.
+FUNDS ARE APPROPRIATED ANNUALLY FROM GENERAL REVENUE TO COVER THE DIFFERENCE BETWEEN THESE CREDITS AND DEBITS AT THE END OF A FINANCIAL YEAR, REPRESENTING ADDITIONS TO STOCK AND SALES TO SUBVENTED ORGANISATIONS, THE PROCEEDS OF WHICH ARE CREDITED TO GENERAL REVENUE,+ HE SAID.
THE DISADVANTAGES OF THE PRESENT ARRANGEMENTS ARE:
* FIRST, THEY ARE UNNECESSARILY INFLEXIBLE, SINCE THEY
PROVIDE NO AUTHORITY FOR THE DIFFERENCE BETWEEN CREDITS AND DEPITS TEMPORARILY TO EXCEED DURING THE COURSE OF A YEAR THE AMOUNT APPROPRIATED TO COVER THIS DIFFERENCE, AND
* NO USEFUL PURPOSE IS SERVED BY APPROPRIATING FUNDS TO COVER EXPENDITURE WHICH WILL IN DUE COURSE BE OFFSET BY PAYMENTS FROM SUBVENTED ORGANISATIONS AND GOVERNMENT DEPARTMENTS.
+SECTION 30(1) OF THE PUBLIC FINANCE ORDINANCE PROVIDES THAT A SPECIAL SUSPENSE ACCOUNT MAY BE ESTABLISHED FOR THE PURPOSES OF ANY COMMERCIAL OR INDUSTRIAL ACTIVITY CARRIED ON BY OR ON BEHALF OF THE GOVERNMENT.
+1 THEREFORE PROPOSE THAT THESE FINANCIAL ARRANGEMENTS SHOULD BE REPLACED, WITH EFFECT FROM APRIL 1, 1986, BY A SPECIAL SUSPENSE ACCOUNT ESTABLISHED UNDER THIS SECTION,+ HE SAID.
THE MAIN FEATURES OF THE RESOLUTION AND THE ACCOUNT ARE AS FOLLOWS:
INITIAL PAYMENTS
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