H.—3o.

PRIMARY PRODUCTS MARKETING DEPARTMENT— continued. Dairy Industry Account (Income and Expenditure), Period Ist August, 1936, to 31st July, 1937. l Jr - £ s. d. Cr. £ s. d. £ s. d. Estimated deficit Creamery Butter Account .. .. .. .. 561,397 1 6 Estimated surplus Cheese Account .. .. .. 18,354 7 6 Less estimated deficit Whey Butter Account .. .. .. 5,70759 12,647 1 9 Estimated surplus cheese and whey butter .. .. .. .. 12,647 1 9 Balance (estimated deficit Dairy Industry Account, 1936-37 season) .. 548,749 19 9 £561,397 1 6 £561,397 1 6 Balance-sheet as at 31st July, 1937. Liabilities. £ s. d. £ s. d. Assets. £ s d £ s d Overdraft: Reserve Bank of New Zealand .. .. .. 3,998,118 1 5 Sundry debtors— Less balance at Bank of England and Bank of New Zealand, For produce and amounts accrued due .. .. .. 519,554 5 0 London .. .. .. .. .. .. 14,387 9 2 Internal Marketing Branch .. .. .. 37,569 18 3 3,983,730 12 3 557 124 3 3 Sundry creditors for accrued charges and sundry credit balances .. .. 2,863,794 5 3 Stocks— Produce .. .. .. .. .. .. 5,733,548 14 2 Advertising material and sundries .. .. .. 3,279 14 0 5,736,828 8 2 Office and departmental equipment .. .. .. .. .. 4 822 6 4 Dairy Industry Account (estimated deficit, 1936-37 season) .. .. .. 548,749 19 9 £6,847,524 17 6 £6,847,524 17 6 Notes. A. The following items of expenditure included in the accounts are being authorized in a Finance Bill to be submitted to Parliament during the present session: (1) Further payment of £165,000 to cheese-manufacturing companies. (2) Interest on overdraft, £56,683 2s. sd. (3) Payment of £30,866 17s. to the Butter-box Pool Account. (4) Advances to Internal Marketing Branch, £37,569 18s. 3d. (5) Additional amounts due on butter and cheese exported after 31st July, 1937, but paid for at the 1936-37 prices, pending the fixing of the 1937-38 prices. (Produce exported after 31st July, 1937, is payable at the 1937-38 prices). (6) Payment of £44,000 to dairy companies (£28,000 on account of cheese and £16,000 on account of butter) to preserve equity in respect of grading-dates for produce payable at the 1936-37 and the 1937-38 guaranteed prices. B. The effect of the validation of the items of expenditure mentioned in paragraphs (5) and (6) above is that the guaranteed prices fixed for the 1936-37 season apply to all export butter graded up to and including the 19th April, 1937, and to all export cheese graded up to and including the 18th March, 1937, and the guaranteed prices fixed ior the 1937-38 season apply to all butter and cheese graded after those respective dates. C. In order that the accounts should cover all export butter and cheese manufactured up to and including 31st July, 1937, the quantities in store in New Zealand at that date are included. Ownership of this produce passes to the Crown, in terms of the Primary Produces Marketing Act, when it is placed on board ship for export from New Zealand. G. A. DUNCAN, Acting Director of Marketing. I hereby certify that the Purchase and Sale Accounts, the Administration and General Expenses Account, the Income and Expenditure Account, and the Balancesheet have been duly examined and compared with the relative books and documents submitted for audit, and correctly state the position as disclosed thereby subject to the departmental notes enfaced thereon.— J. H. Fowler, Controller and Auditor-General.

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