PUBLIC EXPENDITURE,

Dominion, Volume 1, Issue 248, 13 July 1908, Page 4

PUBLIC EXPENDITURE,

.I'OST-AUDIT OR PRE-AUDIT. (BT telegraph.—special correspondent.) ! Christoliiirch, July 11. The "Press," fcoihmentingv'cm the statement by Sir Joseph.Ward that: tho Governments intends to substitute the post-audit system for the present system of pro-.audit, remarks" Under the latter the AuditorGeneral is also nominally at least ControllerGeneral. of tho -public expenditure, yln ,the ordinary course, before a creditor of the Government can receive a cheque for his account and cash it at tho bank, tho vouchor has to bo audited and passed by the audit department, who have to bo satisfied, not only as to its correctness, but also that tho money has been appropriated by Parliament and the payment is according to law. Under tho post-audit system, the account would be audited after it is paid, and if it wero found incorrect, or illegally paid, tho amount in question would be surcharged upon tho officer responsible for tho psymont. At first sight it looks as if tho former plan constituted a moro efficient safeguard of the public interest, but tho protection is not,so complete as it appears. In tho first place, it does not apply to tho large sums of money which aro advanced upon imprest to officers in various - departments, cspcci*lly the' railway department, from which direct payments are made., In the second place, the control which the audit department possesses of refusing to issue money where tho payment is contrary to law. is moro nominal than real, and this, for two reason —first, because the Government has tho unauthorised voto of £150,000 a yoar to fall back upon; secondly, it can over-ride the objection' of tho Auditor-General by virtue of the Public Revenues Act, 1000, which provides'that in case any difference of opinion arises .between tho\Audit Office and the' Treasury .as to any payment question shall be.determined by the Treasurer. - Thismonstrous provision roallv takes away from the Auditor-General tho last vestige of'control over illegality in tho public expenditure, and so long as this over-ruling power is kept, in'tho : hands of tho Govornmcnt it does not matter a button whether wo have post-audit or pre-audit so far-'as protcctiou agailist'! illegality of expenditure is concerned, Tho advantages claimed for tho pqst-audit system i aro that it wbuld enable payments to-bo mado' tq contractors and others moro promptly, while, according to Sir Joseph Ward, it is intended that the name of cvory person to whom a payment is mado and cvory penny piece of expenditure shall be set out in detail and laid upon tho table of the House. Wo do not understand why'this is not possible under the presont system of ; pre-audit, but thero is no doubt it will be a vory excellent reform which, should help to check both, extravagance and anything approaching illegality in tho public expenditure.." The " Press" adds that before the Bill is referred to" tho Public Accounts Committee the Government should add Mr. Massey to that committee.