XN000022-1991-07-17 — Page 15

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,

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