Co-op. Society's Finances Under Fire

Chronicle (Levin), 11 September 1948, Page 5

Co-op. Society's Finances Under Fire

WELLINGTON, Sept. 10. In the House this afternoon Air. W. H. Fortune (Eden) said there should be absolute frankness in the presentation of the Publie Accounts. Tlie people of New Zealand who were taxpayers and shareliolders in "this big business of government" had a right to know all about the finances of the State as had the shareliolders in any public companv. Air. Fortune, referriug to the balance-sheet of the Hutt Vallev Consuniers Go-operative Society Limited, said that for the year ended Alarch 31 last a turnover of more than £7(5,000 was shown with a not profit of £404 onlv. Anv norma! trador would have sat up and taken Holme of such a ridieulously small profit as that. The capital stood at £4(529 and the liabilities at £23,246, including the Bank of New Zealand for £970(1. Apparently tlie unsecured balance of £14,700 was owed to sundry creditors. It loolced as if the members of that eo-operative society would run every chance of losiug all they had put into it. Air. Eortune said that among the assets were two items — cost of establishment £1900, and appropriation accounl £950 — which indicated that lialf the capital had gone alreadv. The auditor had drawn attention to the fact that -tlie niembers' register was not ltept in accordance with the society's rules, and he could not vouch for the accurafV of the records and that he was of opinion that there was not an adequate system of intemal check, in partieular to coveT tlie receipt of the society 's im-oming ; casli. Everything miglit be all right, continued Air. Fortune, .but such a small profit would speak volumes to any ordinarv trader and any auditor would iiuiiiediately becoine suspicious. After a survey of otlier retuarks made by the auditor he said that it tvas no ivonder that the directors' report rentarked that it was apparent that the society was not obtaining the numlier of new members which they would normally expect and that niany residents of the housing areas were prepared to lend somewhat -unwilling siqiport to the cooperative movement but the • same )ieo]iIe Avere not sa willing to face up to -the responsibility of carrylng their share of the cost iuvolved in tlie society's development and consolidation. n ■■ ■