Islands Accounts

Auditor-General’s Comments Difficult Time That Calls for "Sound Economy”

From Our Canberra Correspondent.

CANBERRA, March 10.

IN HIS annual review of the finances of the Commonwealth, the Auditor General, Mr. C. J. Cerutty, makes a detailed examination of the financial condition of Papua, and the mandated territories of New Guinea and Nauru.

Papua,

As compared with the previous year, there was an increase of £4,118 in the Papuan revenue for the year ended June 30, 1930, and a decrease of £1,075 in expenditure.

The increase in revenue was due chiefly to the following: Import duties on ordinary importable goods, £3,025; mining receipts, £1,178; repayment of the Government plantations loan, £2,500; and sale of stores, £3,314.

The last-mentioned figure represents the value of stores issued by the Gov ernment Storekeeper in excess of his purchases for the year.

Against these increases, the follow ing decreases occurred: Commonwealth grant towards expenses of the Admin istration, £8,000, and export duties, £839, due principally to a fall in the price of copra.

The balance of the trust fund (in cluding loan and grant funds) amoun ted to £74,395.

Receipts under the head of Native Taxation Account amounted to £16,524 The expenditure under the head of Native Education Account is mainly devoted to missions, for schools and industrial training, and to the cost of instructional staff on native planta tions. Portion of the Native Taxation Account is used to provide medical and hospital services for natives, in addi tion to the payment of family bonus.

The Auditor-General points out that provision is made in the Estimates for 1930-31 for a transfer of an amount of £8,730 from the Insurance Fund Account to revenue for general expen diture purposes, and it appears to him to be a sound way of disposing of the surplus, which has accumulated in the account over many years.

The net profit from Government plantations for the year amounted to £991 12s. 6d., a reduction of £1,820 com pared with 1928-29, due almost entirely to the fall in price of copra and rubber.

From the inception of this business, the total profits have been £29,611.

Territory Of New Guinea.

The cash position in regard to the New Guinea territory is that, although funds totalling £17,048 are held, as shown, on the debit side of the Ad ministration account, there is an over draft of £15,677 with the Common wealth Bank in Rabaul, the overdraft being secured by the lodgment of fixed deposits.

Of the total of £60,101 at the credit of Trust Fund, investments have been made in the way of fixed deposits and savings bank accounts (£43,967) and advances to the Loan account (£16,000), leaving only a balance of £133 unin vested —a working cash balance which, in the opinion of the Auditor-General, is insufficient.

After an examination of the Con solidated Revenue Account, the follow ing important remarks are made: In round figures, the total revenue was £340,000 and the expenditure £356,000—a deficit for the year of £16,000. Although these figures show an improvement of £10,000 over the transactions of the previous year, when the deficit was £26,000, it is clear that definite steps must be taken either by reduc ing expenditure or increasing revenue to pre vent the small accumulated surplus of £3,700 at June 30, 1930, being converted into a defi ciency. As compared with the previous year, the revenue decreased by £11,000, while the expenditure decreased £21,000. Of the fall in revenue, decreases occurred in Customs, £9,000, and sale of Stores, £20,000.

Against those decreases, there were in creases in Land revenue, £10,000, and mis cellaneous, £6,000. The fall in Customs revenue is attributed to trade Conditions resulting from a depressed copra market and the establishment of a Trust Fund—Stores

Suspense Account. Of the expenditure, de creases are shown under the heads of Trea sury £11,000, Customs £5,000, Public Works £7,000, and New Works £13,000; while in creases are Indicated under Lands £5,000, and Health £5,000.

Included in the Customs Expenditure is the sum of £7,609 for the maintenance of the steam yacht Franklin. While the usefulness of this vessel is recognised, the cost appears to be altogether out of proportion, particu larly under the depressed financial conditions, for it represents over £140 per week and roughly 2½ per cent, of the Revenue collec tions of £340,000.

The continued depression in the copra mar ket has resulted in a general tightening of available credit which has reflected itself in the revenue collections, and while the depres sion appears to be world-wide in its relation to essential primary products, the position in this Territory must be rendered more difficult owing to the fact that the value of copra exports amounts to 80 per cent, of the total.

In the last twelve months the London price of copra has dropped about 30 per cent., practically down to production costs.

Although some relief may be looked for from the further development of the goldfields area, particularly in relation to the Customs duty recently imposed on mining machinery and aeroplanes, the present is a difficult time in the finances of the Territory and neces sitates sound economy if existing services are to be maintained without a deficit arising.

Nauru.

A statement of the liabilities and

assets of the Nauru Administration gives the former as £5,909 16s. sd. and the latter as £24,030 18s. 3d. The ex

cess of assets, amounting to £18,121,

represents the accumulated surplus of

revenue over expenditure during the

administration of the island by the

Commonwealth.