THE AUDITOR-GENERAL.

New Zealand Herald, Volume LXIII, Issue 19386, 22 July 1926, Page 12

THE AUDITOR-GENERAL.

SECURITY OF HIS POSITION.

SUGGESTION OF PRESSURE.

DENIAL BY MINISTERS.

"QUITE SAFELY ENTRENCHED."

[BY TELEGRAPH. —SPECIAL REPOBTER.] WELLINGTON, Wednesday. Ihe independence of the Controller and Auditor-General was referred to in the House of Representatives to-day. The matter came up when the Speaker announced that he had received a letter from the Auditor-General reporting on the public securities held in the Dominion and elsewhere at the end of the last financial year. Mr, W. A. Veitch (Wanganui) took the opportunity to raise what he termed a point of very grave importance. Hitherto, he said, it had always been believed that the Auditor-General was all-powerful in the matter of public finance. It was of the greatest importance that this official should be free from political pressure of any kind. It was just as important that he should be protected as that Judges should be protected. There was no estimating what wrong might be done in the expenditure of public money in the future if he was not absolutely independent of political pressure. It has always been believed that it would need a resolution of both Houses of Parliament to remove him, but recent experience before the House had exposed the fallacy of that belief and shown how easy it would be at any time for a party controlling a majority in the House to deal with him if he should cause dissatisfaction to them. A Member: In what way ? Mr. Veitch: By carrying a majority, vote in the House. The Member: Why do you say that? Extension of Law Wanted. Mr. Veitch said he was convinced it would bo possible in future for that to be done. Ho was not suggesting it would be done. Tho Hon. W. Nosworthy: If so, it will only be done with the consent of Parliament. . Mr. Veitch said the matter was one for action by the House. The protection afforded was not as strong as they had thought it was. Last session the Audi-tor-General had been called before a committee of the House and called to account for a certain statement made in a report. That very fact was proof that it was possible .for a party vote to deal with the officer in a way in which he believed the law never intended. The Prime , Minister: Parliament deals with the Controller. The Hon. W. Downio Stewart: Both Houses. Mr. Veitch: X am asking for an extension of the law. Mr. Nosworthy: Whero do you say is the weakness ? Mr. Veitch: It will bo possible at any time for a party in power to deal with that officer as it thinks fit. Mr. Fraser: Parliament is responsible to the representatives of tho people. The Incident Last Session. Tho Leader of the Opposition, Mr. H. £. Holland, said he wholly disagreed with the view expressed by Mr. Veitch that the controller should not be responsible to tho Parliament of the Country. If not to Parliament, then to whom ? It was not quite correct to say that because of a report he submitted last year the Auditor-General was called to account. What happened was that the AuditorGeneral made statements which were extremely serious, including allegations of theft against certain people. One was a constituent of Mr. Holland, and he insisted that the charges should be proved, or otherwise, that guilty people should suffer, and that all should be given an opportunity of proving that they were not guilty. The result was that a select committee of the House was set up to hear evidence. It would bo absurd to say that when the Auditor-General reported to the House the House should take no action. T' ti ln Auditor-General said that thousands of pounds had disappeared it was the duty of the House to take notice. Parliament w;.s the only body which could take effective action. At the inquiry nearly all the Auditor-Gene-ral's charges had been disproved, but it was in the interests of all concerned that they should have been inquired into. He agreed that the Auditor-General should be free from political influence in making his report tc the Speaker. Mot Powers of an Autocrat. Mr- Downie Stewart said that Mr. Veitch must have spoken without thinking. Such a serious and important ques* tion might have received more consideration from the member before he took the risk of causing alarm. There was no person more safely entrenched or more secure than the Auditor-General. No mere party majority could act in any arbitrary way in respect to this officer. Mr. Veitch: He can be removed. ✓ - Mr. Stewart: Only by an address to the Governor-General from both Houses of Parliament. So, added Mr. Stewart, not only both Houses, but also the Gov-ernor-General had to be satisfied. It was natural that the Auditor-General should report, and that his reports should be subject to discussion in the House. The Governor-General-in-Council might suspend the Auditor-General, while, the House was not in session. The powers of the Auditor-General were not that of an unlimited autocrat. If differences of opinion arose between him and departments of State the matter must be referred to the Attorney-General. There had been a case of the kind the other day. There was no danger such as Mr. Veitch indicated of a mero party majority imposing its will on the Controller.'

EDUCATION FINANCE. WELLINGTON BOARD'S CASE. [BY TELEGRAPH. —SPECIAL REPORTER.] WELLINGTON. Wednesday Recently the member for Wellington Central, Mr. F. Fraser, asked the Minister of Education, Hon. R. A. Wright, whether his department had not had to take special action regarding the Wellington Education Board's finances, including a special audit. The Minister made the following reply to-day: "The Education Department has had cause to draw the attention of the Wellington Education Board to the method of keeping its accounts. A special investigation was made by an auditor appointed by the Wellington Education Board about two- years ago, assistance being given by th*> departments inspecting accountant. The report disclosed that the board had expended moneys for sites and other legitimate purposes' in excess of the funds available. However, the board is in possession of valuable properties which can be realised if necessary in order to refund any advance which may be made by the Government. The accounts have row been put in order and are being kept to the entire satisfaction of the Audit and Education Depar tiueats."