THE ACCOUNTANTS BILL.

Evening Post, Volume LXXIV, Issue 19, 22 July 1907, Page 4

THE ACCOUNTANTS BILL.

TO TOT EDITOR. Sir, — In your parliamentary report of tho second reading of this measure in tonight's paper it is stated that Mr. A. L. D. Fraser "declared that the majority of ■tho members of ... the Incorporated Institute of Accountants were of one opinion as to the necessity for bringing down legislation that will embody all the men operating in those professions into one tolid body." As I think this statement may possibly create a wrong impression, and in view of tho importance of the projected legislation to the commercial and investing publio as well as to tho profession, I shall be glad if you will reproduce in yonr columns tho subjoined letter which I addressed to Mr. Fraser 'ofathelSrh mat.—l am, etc., WILLIAM JACK, Incorporated- Accountant. Wellington, 19th July, s. "Wellington, N.Z., 16th July, 1907. A. L. D. Fraser. Esq., M.HJK. - THE ACCOUNTANTS BULL, 1907. Sir,— l am informod by Mr. R,. JECill Fisher, president of the "Incorporated* Institute of Accounts of Now Zealand, that you havo taken charge of this Bill,«,antl, in accordance with his .suggestion that J should_ communicate any objections to its provisions to you direct, I "beg leave to refer to various points to which I take exceDtion. The employment throughout the 'Bill of the term "the Institute" to -iudka^o the body of registered accountants to be formed under the proposed Act is quite unwarranted, and is calculated -to do grave injustice to tho Institute of Accountants already incprporated and registered' in 1894- under the 1882 Act by the title' of "Tho Incorporated Institute of Accountants of New Zealand." There is and can bo only one "institute" in this colony, tho right of user being indisputably that of the already registered institute, so that the misuse of the term in the Bill is very objectionable, as its retention would pract'cally imply the extinction of the existing institute, without the consent and contrary to the wishes of its members, who are entitled to the protection of Parliament in the maintenance of their rights under the existing law, and against infringement by any new legislation. The members of the institute (wirch has been in, existence for thirteen year.) have expressed no desire for its abolition, but, on the contrary, ara practically unanimous in a strong determination to preserve its distinct identity, whether or not any legislation is'enacted by Parlinmnet relative to the Governmental regulation of tho profession. I am entitled to write with somo authority on this point, as I had occasion List year to correspond with members of tho institute on tho question of legislation for the profession, and, as you will see by enclosed papers, thero is a strong fooling throughout tho country against tho submergence ol tho institute or its amalgamation with any other body, either under the proposed Act or apart from it. <j TM ahsnrci'y wido rcope ,of admission to registration under tho proposed Act is fatal to its usefulness, and, as at present drafted, is & menace rather than a likely protection to tho pubb'c, embracing, as it practically does, all persons employed in offices in New Zealand, to tho number of irnriy, ♦howandE, including a prepon^eranco of persons who have no acquaintance with tho principles of 'commercial bookkeeDing. to cay nothing of the trider professional knowledge embraced in accountancy. It may be contended that applicants will be roauircd to satisfy the council of their capacity, but, as it is proposed to admit mombers of certain organisations purely on the ground of such membership, it would bo invidious to require from other applicants who come under tho definition of the Act any other evidence than that they were entitled to bo embraced under sucn deseript|on. * i • As thero has been nothing in the law hitherto to pfeyeht the association of any .portons-jnto-, companies, of sp-callod accountants, mpmbership of any "such society should not, per se, bo accepted as evidence of any applicants' knowledge or capacity. Therefore it is contended that no i-p r . son should be registered under the Act solely on their membership of an existing company of so-called accountants. As a condition precedent to the recognition of ( examinations (apart from those conducted under the Act) of any organisation by the council as a, criterion of qualifications of applicants, strict investigation should be made of the conditions under which the examinations of the individual applicants were held, and the results on which the individual passes wore granted. , 3. The method of electing the council under the Bill by jrresponsiblo, applicants is larcical. It is open for unquahfisd persons, by prosecuting a canvass of tradesmen of any. craft, to "etuff" the council with jjersons without any pretension to •professional -knowledge. Any independent board of nqreons of. known character or responsibility would be preferable to the procedure suggested. It is desirable that the nominations of tho first council should be beyond bias, and I therefore suggest that the chairman of the temporary Board of Selection should be a Judge of tho ■ Supremo Court, and his- colleagues gentlemen delegated by the Chambers of Commerce in the four chief cities pf the colony. Candidates for seats on tho council should be required to produce documentary evidence from (a) a solicitor in practice, (b) a commercial principal certifying to acquaintance with and experience of accounts and from two other persons of repute as to his personal character and standing in the community, and on this evidence the council should be selected by the board as constituted above. Such council should require all candidates (a) to pass a prescribed examination, or (b) to produce satisfactory evidence of a reasonable knowledge of- account 9 without regard to membership of any particular organisation. The foregoing indications as to the institution of the temporary selecting board for the first council aro purely suggestions, and if any equally unbiassed and responsible committee similarly competent to properly execute the functions of these boards can be suggested it would be acceptable, the eosontial qualifications being absence of biaa and competency to estimate the professional and commercial standing of the applicants for office. Commending these considerations to your attention, — I ain } etc , W. JACK.