(B.)

REPORT OF THE COMPTROLLER AND
AUDITOR GENERAL.

CONSOLIDATED FUND ACCOUNT, 1921-22.

1. The issues for Consolidated Fund Services have in every case been made under proper statutory authority, and I have no observations to offer in this respect.

2. The amount issued to the Public Works Loan Commissioners for Land Settlement during the year was £2,647,069, making a total, at 31 March 1922, of £13,054,309, of which £80,766 18. 6d. had been repaid at that date. Receipts in the year of £728,101 6s. 1d. on account of interest were credited to Interest on Sundry Loans, &c.

3. The amount of £27,500 shown in the Account as issued under the Post Office (London) Railway Act, 1913, represents the final payment from the Consolidated Fund for the works authorized by that Act, making a total issue of £1,089,500. The expenditure out of these issues is dealt with in paragraph 20 of my Report on the Appropriation Accounts of the Revenue Departments.

4. The Unemployment Insurance Acts, 1921, empowered the Treasury to advance from the Consolidated Fund any sums required for the purpose of discharging the liabilities of the Unemployment Fund under the Unemployment Insurance Act, 1920, as amended by those Acts. The total amount of the advances which might be outstanding at any time was limited by the Acts to £20,000,000, but this amount was subsequently reduced by £500,000 in consequence of the transfer of the service, as regards Northern Ireland, to the Government of Northern Ireland.

The amount issued during the year was £14,470,000, while £103,496 8s. 9d. was paid to the National Debt Commissioners in respect of interest on money borrowed from them for the purpose of these advances. Receipts from the Ministry of Labour amounted to £520,000 in respect of repayment of capital and £119,454 178. 3d. in respect of interest.

5. In 1921 the British East Africa Protectorate took advantage of an opportunity of discharging, from the proceeds of a loan raised in the open market, her liability in respect of the advances which had been made to her from Imperial funds. The terms on which repayment was effected were as follows:

Two loans of £132,000 and £648,500, issued under the Finance Act, 1911, and the East African Protectorates (Loans) Act, 1914, respectively, were redeemed by payment of the full amount of principal outstanding, in accordance with the statutory conditions governing these advances.

A third loan of £375,000, which was issued from the Vote for Colonial Services in 1912-13, was to bear interest at 3 per cent.

per annum and to be repaid on terms to be prescribed by the Treasury. The terms so prescribed were that a Sinking Fund at 1 per cent. per annum should be set up, which would repay the loan in about 35 years, and from 1 April 1915 an annuity of £18,750 on account of Interest and Sinking Fund was paid by the Protectorate. The principal outstanding at 31 December 1921 was £338,155. In this case the outstanding liability was liquidated by payment of the present value of the annuity at 31 December 1921, calculated on a basis of 6 per cent. per annum, and a sum of £266,126 was paid into the Exchequer in full discharge.

6. (a) As from 22 November 1921, the "appointed day" for the purposes of the financial provisions of the Government of Ireland Act, 1920, there became payable to the Government of Northern Ireland, out of the Consolidated Fund of the United Kingdom, the Northern Ireland residuary share of reserved taxes, consisting of the proceeds of the reserved taxes, less (a) a contribution towards Imperial expenditure and (b) the cost of the reserved services. The account includes issues aggregating to £1,000,000 in respect of the residuary share for the period from 22 November 1921 to 31 March 1922, but I have at present no information as to the final amount ascertained to be due.

(b) Under the same Act a new High Court of Justice and Court of Appeal were set up for Northern Ireland: all matters, however, relating to the new Courts were declared to be reserved matters and the salaries and pensions of the new judges constitute a charge on the Consolidated Fund of the United Kingdom. Similarly, the Act provided that existing county court judges and all Irish officers whose salaries and pensions were a charge on the Consolidated Fund of the United Kingdom at the appointed day should retain the right of payment from that Fund.

The expenditure in respect of these salaries and pensions, or, where the services performed relate or related to both Southern and Northern Ireland, an appropriate proportion thereof, is recovered by deduction from the Northern Ireland residuary share of reserved taxes.

(c) As provided by the same Act, payments amounting to £103,393 5s. were made to the Government of Northern Ireland, under certificates given by the Joint Exchequer Board, in respect of expenditure on buildings and their equipment for the accommodation of the Parliament and Public Departments of Northern Ireland. This service is carried out by the Office of Works on behalf of the Government of Northern Ireland, and the relative accounts are at present under examination by my Department.

7. The unissued balances at 31 March 1922 of Surplus Revenues, 1907-8 and 1910-11, which were earmarked for various purposes, including expenditure on the erection of public offices at Westminster, grants to sanatoria, and advances to the British East Africa Protectorate, were £196,000 and £309,518 respectively.