EXPENDITURE

Nelson Evening Mail, Volume LXI, 13 August 1928, Page 7

EXPENDITURE

NOT COVERED BY APPRO PRIATIONS

AUDITOR-GENERAL'S REPORT

(By Telegraph) (from "Tim Mail's Parliamentary

Reporter)

WELLINGTON, 10th August. A matter of importance relating tu expenditure not euveml by annual appropriations is raised by the ('onin'ollcr and Auditor-General (Colonel G. F. G. Campbell) in his annual report presented to Parliament yesterday. "In connection with the control uf expenditure by Parliament," says Colonel Campbell, "it appears necessary to draw attention to the large, proportion of the yearly expenditure of the various account's which is now exempt from annual appropriation, a great proportion of which is not even included in the estimates placed before Parliament. In England that part of the expenditure which is authorised by permanent or continuing statutes, and is exempt from annual appropriation, includes only the charges of the national debt, payments to local taxation accounts, the Kings Civil List, and a number of special salaries, annuities, and pensions, including part of the expenses of the Courts ol Justice. Durell, in his book, 'Parliamentary Grants," states that, as such charges' are not automatically brought under the review of Parliament, there is a disinclination to make such perma- • nenfc charges in anv cases which could be provided for without detriment by annual vote. He also mentions that such charges have to be included each vear in the Budget statement, though no vote is required. These restrictions on the use of permanent appropriations appear to have been considerably relaxed in New Zealand, and I cannot find that

thorn is any definite principle regulating the class of expenditure which should be exempted from annual appropriation. "A comparison of the expenditure covered by annual appropriation with that not so covered for the year ended on 31st 'March, 1928, discloses the fact that the, amount of expenditure for the above year not subject to annual appropriation exceeded £31,000,000 out of a gross total of £57,000,000, while of this amount over £11,000,000 was expended without any amount having been submitted to Parliament by Departments in their estimates. These figures are, of course, subject to adjustment but are suflicient to' show (1) that a very large proportion of the annual expenditure is governed by permanent authority (2) that a large proportion of such expenditure is not included in the permanent charges of the annual estimates (3) that the principle of Parliamentary control of expenditure by means of the annual appropriations is being seriously weakened. "In exemplification of what I have said abovo, I might point out that there appears to be no good reason why .such services as the expenditure on school buildings or on railways improvements, which are purely services of an exactly similar nature to other services which are covered by annual votes under the Public Works'Fund, should not be subject to the control of annual appropriations nor is there any apparent reason why the expenditure on works such as the Hauraki Plains settlement, Rangitaiki land drainage, and swamp-land drainage should be exempt from such control, or why such expenditure should bo made without any amount having been placed, before Parliament in the estimates for the year."