USE OF £9000

New Zealand Herald, Volume LXXVIII, Issue 24000, 25 June 1941, Page 9

USE OF £9OOO

CITY COUNCIL FUND

AUDITOR-GENERAL UPHELD

SUPREME COURT DECISION A question raised by the AwlitorGouoral as to the use that the Auckland City Council may make of £9OOO paid to it by the Public Works Department. in lil.'iS for part of the area in Wellesley Street West known as the city market site has been answered in the Supreme Court by Mr. Justice Fair against the City Council and in favour of the contentions ol the Audi-tor-General.

The City Council proposed to set the sum aside as a nucleus of a fund tor the erection of a block of administrative buildings lor the city. "In the meantime," concludes His Honor, it is clearly the duty of the corporation to preserve the capital of £9OOO as paid to it, and to invest it, if that is reasonably possible, so as to provide income for the general purposes ol the corporation." The land was originally granted by the Crown in 1855 as an endowment for the improvement and benefit of the City of Auckland. The Auditor-General raised the question whether thero were anv restrictions on the use by the council of the £9OOO, and in particular whether it had only a partial or qualified interest in the land so taken and whether or not it was entitled to sell the land. He contended that the land was a "public reserve" within the meaning of the Public Reserves, Domains and National Parks Act, or, alternatively, was held by the corporation in trust for a particular purpose. 'I he corporation, tlierefore, had no power to sell, and should have paid the compensation money to the Public Trustee. The corporation contended that the land was not a public reserve nor held for anv particular purpose. His 'Honor held that the land was excluded from the definition of public reserve, but that it was held by the corporation in trust for a particular purpose. The money should have been paid to the Public Trustee and expended in the purchase of other lands or securities as an endowment unless authority was obtained to depart from the terms of the trust.

Costs amounting to £26 5s were allowed against the council, for which .Mr. Stanton appeared. Mr. V. 11. Meredith presented the case for the Crown.