JUGGLING WITH THE PUBLIC ACCOUNTS.

New Zealand Herald, Volume XXXIV, Issue 10901, 4 November 1898, Page 6

JUGGLING WITH THE PUBLIC ACCOUNTS.

THE REPORT OF THE COMMITTEE

DISCUSSION BURKED BY THE GOVERNMENT.

181 TELEGRAPH.—SPECIAL CORRESPONDENT.) Wellington, Thursday. The Government, as it was expected they would, have kept over nearly all the important matters in which their administration has been proved defective until the last moment, so that thero can be no adequate discussion on them. For instance, the Public Works Estimates were rushed through a weary and demoralised House in one night, and now, when the Government find themselves in a hole in regard to the juggling with the railway accounts, they blocked discussion in the first instance by Mr. Meredith moving the adjournment of the debate on the Public Accounts Committee S report, and then talking the matter out till half-past live p.m., so that a vote could not be taken on the motion The report, therefore, will not be circulated and the evidence, which I am told is rather interesting, and reveals a peculiar state of things, will not be published. I am, however m a position to send you a copy of the report! which, considering the constitution of the committee, is sufficiently condemnatory of the administration of tile present Government.

The committee finds that in February last it became apparent to the Treasury that the sum appropriated for the working railways vote would be insufficient to meet the increased requirements of the service for wages ami other expenses up to March 31, and that there was not sufficient "unauthorised available for this purpose, that the available " unauthorised'' vote was insufficient to meet this demand. In January of this year, a transfer of £50,000 had been made from the Consolidated Fund to the Public Works Fund, The Controller and Auditor-General refused to give his assent to such transfer, except as a charge upon the i" unauthorised" vote. The £50,000 was, however, returned to the Consolidated Fund, also from the " unauthorised" vole. The combined effect of these transactions was to reduce the statutory limit of £100,005 for "unauthorised" to £50,000. This unexpected result seriously hampered the Treasury, which was at the moment in possession of ample funds, but without Parliamentary authority to utilise them for the requirements of the working railways. It then became necessary to defray from some other source the increased expenditure of the Working Railways Department. The alternatives presented were : (1) To call Parliament together at once; (2) to suspend the payment of wages and other liabilities of the Working Railways Department till the beginning of the next financial year; (3) to adopt some extraordinary means of providing money. The method decided upon was to sell to the amount of £30,000 stores which had been charged to the working railways (vote 60), £15,000 to the Public Works Department, and £15, to additions to open lines. This was accordingly The intention at the time was that these transfers were to be for the accommodation of the working railways, and that the stoics were to be retransferred as soon as circumstances would permit after the end of the financial year. It would appear from the date of service mentioned on the vouchers, that the £15,000 worth of stores sold to the Public Works Department was retransferred to the Working Railways Department on March 11, and the Audit Department was unintentionally misled on this point by the vouchers sent to it from the Stores Department. The committee, however, has no doubt that the description of the "date of service or supply," as March 11, in the voucher was an error, and that no tetrantiier of such stores took place until after the et.d of the financial year. The £15,000 worth of stores sold to the Public Works \>partment was retransferred in July or August, IKE, but hitherto the Audit Office has declined to pass the vouchers completing Mich sale. ]>y the operation of the provisions of section 41 of the Public Revenues Act, 1891-, the effect of these two sales of stores was to increase the recoveries to the credit of the working railways vote, and thus increase the appropriation under that vote to the extent? of £20,000. The Government was compelled to adopt a course which it had used every effort to avoid, but the practical effect was to increase the balance to the credit of the Consolidated Fund on March 31, 1898, by the sum of £30,000 beyond what the said balance would have been if the " unauthorised" had been available, and the same expenditure had taken place and been charged thereto. The evidence also goes to show that two other transfers of stores took place during the last financial year, of the value of £8580 and £13,908 respectively. These transfers were not for accommodation purposes, and consequently the Audit Department did not take exception thereto. The evidence with regard to the £13,908 is somewhat incomplete. The transfer of stores between Departments has been a common practice for years past, and dates back to the year 1882, but the committee has no evidence to show the nature of such transfers.

The committee is of opinion that the Audi-tor-General acted in strict conformity with the law in refusing to allow the transfer and retransfer of the above-mentioned £50,000, except out of "unauthorised," and that he was justified in reporting the transactions with reference to the sales of stores to Parliament, but now that the matter lias been explained to the committee it considers that under all the circumstances the Government was justified in the course it pursued, and that the £30,000 worth of stores would not have been sold had the " unauthorised " not been diminished by £50,000 in aft unexpected manner as already explained ; and further, it is of opinion that authority should be given to the Auditor-General to sanction the said stores if necessary. The committe regrets that fuller information with reference to these transactions and their effect was not given in the paragraph ot the Financial Statement (page 4), when referring to the limit of " unauthorised." and the inconvenience caused thereby. The committees notes that in the Consolidated Fund Estimates the recoveries to the working railWays vote are stated at £19.137, whereas the actual recoveries, as stated in return two ot the Railways Statement, were £187 964 1 hero seems to be no sufficient reason for the and the committee is of opinion that eredH «fT" n . recoveries placed to the credit of the railways vote should be stated in- the Estimates. Hie committee makes the following recomendations 1, That while it is undoubtedly necessary to make provision for an unexpected increase in railway expenditure during the year th should be done either by allowing the appropriation for the working railways vote to be increased by the excess of railway revenue over the esti mate during the year, or that the statutory limit of the unauthorised expenditure should ™ ways. 2. That if practicable the results of the accounts of the Working Railways Dp! partment should be brought into linp w'n system of accounts is very confusing, and the figures of the railways statement are St to reconcile with those of the public accounts 3. That an inquiry should be held into tho method of keeping the railway and "additions to open lines" stores su'ch inn, ■ 7 include the means by which' the value I7th° stock of stores at the end j year is arrived at. "uanciai In consequence of a hint tint n .»„a d „"^0,50,, oeddon has agreed to make the p,., 1 1 ' ;• -Afryft