PUBLIC TRUST OFFICE

Hokitika Guardian, 28 September 1928, Page 2

PUBLIC TRUST OFFICE

HOW IT HAS GROWN. 1872—1928. (Nineteen Twenty-Eight Committee) Now that the. Labour members of Parliament and the Government itself are satisfied that there is no conspiracy afoot to defame or belittle the services rendered to the State and the community by the Public Trust Office it may be permissable to direct attention to some of the far-reaching powers the Legislature from time to time has bestowed upon this particulai branch of the Civil Service. Before proceeding to do this, however, it ma\ further clear the atmosphere to quote what the most trenchant newspaper critic of the Office bad to say just the other day concerning its administration and efficiency. “Nobody denie' that the Office is efficient,” this'authority declared, “it is a very efficient Department indeed. No one complains that its chief administrative and professional officers a,re wanting in competence, or that they are over-paid As a matter of fact they are general!' very competent, and however one may eritic.se the Office as a Department of State, one must allow that for the actual work they do the salaries of the Public Trustee and of his chief subordinates are really not high. But that is all beside the main point.” Praise of this kind for the staff, from a responsible source, coukl go no further! The personal element that has been introduced into this discussion may be set aside definitely. OTHER YIATTERS.

B,ut there are other matters. The mystery concerning the Common Fund has been mentioned. It appears to observers who are not admitted to the full confidence of the Office that the depositors in this fund receive ’interest- varying from 4$ per cent, to 5, ! , per cent, and that their money is re-invest-ed by the Office at rates ranging fro-m 6 per cent, to 6) per cent. In a brief paragraph of four lines in this year’, 1 bulky report of sixty-four pages it is stated that the interest charged fo v advances from the Common Fund has remained at 6 per cent., and proving attractive to* all classes of eligible borrowers “has beeuba large factor-in se curing a steady :flow of ; suitable applications.” It would seem, therefore that the .Office; .has; -been appropriating a very share of the interest ob tained from *-these! (investments, quite frankly, of course. < but j-under a system which could not' he ! described as particularly generous. In a preface to the Public Tru'stee’s ’ Reoort, which was laid on the table of the House r fortnight ago, the Prime Minister claimed that in establishing the Pub'ir Trust Office, Parliament had created ho monopoly in its favour: hut had left the individual perfectly free to utilise other agencies if he preferred t' do so. This statement, doubtless made in good faith,p needs a little qualification .

LATER DEVELOPMENTS. If the /Prime Minister could fin 7 time during the recess to look through the Public Trust Office Act of 1872 lu would find it a very different measure from its successor on the Statute 800 l to-day. A few examples of the change? that have been effected may be indicated briefly. In 1894 it was enacted that the Office, with the consent of a judge of the Supreme Court, might sell, exchange or purchase land up to the value of £SOO. In 1908 Parliament dispensed with the- judge and raised the- value to £IOOO. In 1921 the value was enlarged to £2009 and all restrictions were removed from leasing land In 1908 it was provided that onefourth of the profits of the Office should be employed in building up an assurance and reserve fund and that the other three-fourths -should be paid into the Consolidated Fund. In 1913 power was taken to retain for the next ten years the whole of the profits for the erection of officers and the institution of an Investment Fluctuation Fund. In 1921 the Office was authorised to carry on any business in an estate without limit' as to time and without liability even if all the assets of the estate should become exhausted. And so on, until the Office of 1928 bears scarcely a family resemblance to tbc Office of 1872. EXTRA ORDINARY POWERS.

There is space liere only for the mere mention of two or three of the extraordinary powers conferred upon the Office. It may charge to its Profit and Loss Account, without Parliamentary authority, losses incurred through negligence of any member of its staff. Tt may change the basis of an annuity or any other periodic payment within its administration without the consent of the beneficiary and without assuming any responsibility for the change. The Public Trustee may summon before him and examine any person believed to hold property and on the person summoned refusing to attend <y to answer questions may move tor the imposition of such penalties of fine and imprisonment as a judge may inflict in the case of contempt of Court. The Trustee has power to oppose applications by other persons for administration. and to obtain his costs, charges and expenses from the estate. A humorous feature of his privileges is that the Public Trustee, acting in one capacity, may sue himself in a. different capacity. Apparently there, is no appeal from his decision in such a case. Pointed attention has been drawn lately to his responsibilities in connection with certain bequests which seem likely to involve him in public affairs. But, as already emphasised, these difficulties a,re not the creations of the Public Trustee. They are matters requiring the attention of Parliament.