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The Guardian And Evening Star, with winch is incorporated the West Coast Times THURSDAY, DECEMBER 29, 1932. CO-OPERATION NEEDED.

ilia suggestion that there could be more. ration between ciepart-me-ii's -ui Ov«wa in the utilisation of public ba.la.mes instead or such rein..»oe ben g piacoa on tlie Bank oi :\ew Zeal-m-a. for departmental overdiaiiti during any oue year, is niaue in tne annual it,port of the Con-a oiler and Auciitor-ueneral, 'Colonel G. I. C. O-vnip'boll. “Lauer clause 10 of the agreement between the uovernnkm't ana tne Bunn of New Zealand, ’ he | btatesj “the bank is required to allow . interest on the total clai.y balances of all Government accounts at \\ ellingcon (exclusive of accounts appropriated lor chsoui sement) at the ra-e of 2 per cent, up to £403,000, and at the rate of 1 per cent, from £430,003 to £1,8(a),OOj-, no interest being allowed on the aggregate 'balances held in excess of £1,800,000. During the 1 greater portion of 1931-32 the Public j Trust Office was working on a hank overdraft, and, for shorter periods, the Government Insurance Account was also overdrawn. lus.eud of the overdrafts on these accounts being set off aVminFt the larger credit balances in the other Government accounts, interest was charged by the bank on the overdrafts at overdraft- rates. It does not seem equitable that the Government should receive interest at- a maximum rate of 2 per cent, on the balances of certain Government account with the hank, and at the same time be called upon to pay interest at as high a rate- as 6£ per cent, on Government accounts with the same bank, which are overdrawn, when the debit on the overdrawn accounts is much more than covered by the credits on the other accounts. It would appear that when there is an overdraft on some of the Government bank accounts in excess of spe-h overdraft, the one should be set off against the- other, and interest be allowed only on the net balance. Some idiscuission has taken place between the Treasury and the Public Trustee on the question as to whether the Treasury could not lend t-o the Public Trust- at a lower ’ rate than- the usual overdraft rate than the usual overdraft rate charged by the bank, and thus benefit both , departments. For instance, during portion of the year 1931-32, the Public Trustee’s overdraft at the bank varied up to £240,003, for which lie paid 6| per cent., while at the same time, the Treasury had on fixed deposit at the same bank, amounts varying from £1.000,000 to £200,030, for which it

only received from 2f to 31 per cent. It. would of course be impossible for the Treasury to guarantee that it would be in a position to make advances to the Public Trustee whenever required by him, and it is also recognised that in some cases, not only is it more convenient hut also possibly less costly for the Public Trustee- to operate through the bank. But the foregoing facts seem to indicate that when, the Treasury is in a position to place money on fixed deposit, the Public Trustee should have prior claim to it. It would seem that there is room for co-operation between the departments in this matter.

Permanent link to this item
Hononga pūmau ki tēnei tūemi

https://paperspast.natlib.govt.nz/newspapers/HOG19321229.2.17

Bibliographic details
Ngā taipitopito pukapuka

Hokitika Guardian, 29 December 1932, Page 4

Word count
Tapeke kupu
540

The Guardian And Evening Star, with winch is incorporated the West Coast Times THURSDAY, DECEMBER 29, 1932. CO-OPERATION NEEDED. Hokitika Guardian, 29 December 1932, Page 4

The Guardian And Evening Star, with winch is incorporated the West Coast Times THURSDAY, DECEMBER 29, 1932. CO-OPERATION NEEDED. Hokitika Guardian, 29 December 1932, Page 4

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