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Balance-sheet as at 30th September, 1949 Liabilities £ | Assets £ Sundry creditors .. .. .. .. .. 800,193 I Sundry debtors .. .. .. .. .. 973,858 Meat industry Stabilization Account .. .. .. 15,793,104 j Stocks .. .. .. .. .. .. 4,421,844 Bobby Calf Stabilization Account .. .. .. 943,699 : Investments in Government stock .. .. .. 27,000,000 Meat Pool Account .. .. .. .. .. 13,742,556 Bobby Calf Pool Account .. .. .. .. 487,039 Reserve Bank of New Zealand .. .. .. .. 629,111 | £32,395,702 J £32,395,702 Note.—In terms of the agreement validated by section 4, Finance Act, 1946, the increases in the purchase -prices and sale-prices above the level at 15th December, 1942, are required to be debited and credited respectively to the Industry Stabilization Accounts, and prior to 1948-49 this was done. In order, however, to show the results of operations for the 1948-49 season more clearly, the Purchase and Sale Accounts include the full purchase and sale prices as previously, but the results of trading, including the net results of stabilization increases, have been transferred in one amount from each Purchase and Sale Account to the Stabilization Account.

L. C. Webb, Director. A. E. Ormandy, for Chief Accountant. I hereby certify that the Balance-sheet as at 30th September, 1949, and supporting accounts in respect of the Meat Industry Account have been compared with the relative books and documents submitted for audit and, subject to the following comment, correctly state the position as disclosed thereby. There has been no apportionment of the results of trading as between the Pool and the Stabilization Accounts, the net result of trading in bobby calves having been credited to the Bobby Calf Stabilization Account and net result of trading in other meat and tallow having been credited to the Meat Industry Stabilization Account. The Audit Office is not able to say with certainty if this falls within the terms and conditions of the agreements between the Government and the producers, but it is understood that it is proposed to amalgamate the Stabilization Account with the Pool Account in each case, in which event the question will be of no importance. The difficulties have arisen because the agreements did not specify the adjustments to be made in the event of alteration of the exchange rate.— J. P. Rutherford, Controller and Auditor-General.

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