MAORI LANDS

Southland Times, Issue 22296, 11 April 1934, Page 7

MAORI LANDS

WORK OF BOARD EXTENSIVE SURVEY ROYAL COMMISSION SITTINGS COMMENCED (Per United Press Association.) Wellington, April 10. An extensive survey of Maori land development schemes, the operation of the board which controls them and details of the Native Affairs Department were given to-day before the Royal Commission set up by the Government to inquire into the administration of the departments of State concerned in the welfare of the Maori race. The whole of the day was occupied in hearing the evidence of Mr P. G. Pearce. Under-Secretary of the Native Affairs Department. The members of the commission are Mr Justice Smith (chairman) and Messrs John Alexander, Auckland, L. W. Nelson, Whangarei, and D. G. Johnston, Wellington. Mr G. P. Finlay, of Auckland, is appearing for the native race and Mr R. H. Quilliam, of New Plymouth, is under instructions from the Government to assist the commission. Extracts from the reports of the stores and audit inspectors upon the operations of the Maori land development schemes and details of the action taken to correct irregularities were given by the Under-Secretary. The stores and audit inspector’s report, which was put in as evidence, disclosed irregularities, mainly in the Waiariki. Waikato, Maniapoto and Tairawhiti districts. Mr Pearce, whose direct association with the department dated back only to November 28 last, and who consequently said that he gave evidence with great diffidence, said that the legislation of 1929 giving the Native Minister power to develop native lands and to make advances out of Government loan money was revolutionary as far as the department was concerned, as it imposed an entirely new class of work upon the staff and subjected them to all the restrictions connected with the handling of public moneys. It was a matter for consideration whether the department rose to the occasion or failed, and, if so, who or what was responsible. One important point was whether the Under-Secretary and his stall were able to appreciate at its beginning the extent of the new undertaking and the rapidity with which it would expand. The expenditure in 1929-30 was £6561. in 1930-31 £87.869, in 1931-32 £247,487 and in 1932-33 £244,704. Minister Maintains Contact. Mr Pearce said that the Native Minister maintained a very close contact with the field officers and development schemes and kept the central control in his own hands, and as many of his communications with field officers were verbal, they were not recorded on the office files. The Minister made frequent visits to the schemes. “I am not in a position to say authoritatively whether or not the department’s stores rules and forms are sufficiently complete or in the simplest form, as I have not had an opportunity of studying them carefully,” continued Mr Pearce. “From what I have seen a workable system has been laid down and any faults that exist are the result of imperfect knowledge for the negligence of the officers o pointing it. However, it would have been better had the rules been amplified to meet special conditions, such as aie ‘■‘"'7 perienced in dealing with livestock and perhaps other matters. Judging by what I saw in one office (Auckland), the system is overdone, and this gives rise to unnecessary labour, but steps are now being taken to rectify the matter. In July, 1930, special stores forms were designed in collaboration with the Public Service inspector, representing the Public Service Commissioner and the Treasury inspector, and in September they were circularized to Maori land Board offices. On September 27, 1930, the Farm Director, Mr Wright, complained about the introduction of the forms and set out to oppose them. The accountant, in a memorandum to the Under-Secretary wrote: ‘Wright’s action in impounding the forms is a flagrant obstruction to the smooth and efficient working of the schemes and is also an unwarranted attitude towards Head Office instructions, which have been based on the Treasury, and Audit Department requirements.’ The Real Difficulty. “It should be appreciated,” said Mr Pearce, “that the real difficulty existed with these scattered units in satisfying the Audit and Treasury requirements. Nearly all the expenditure vouchers were certified in the Maori Land Board offices and transmitted to the Head Office, where they were checked and passed to the Treasury for payment. “The Maori Land Board officers were under direction to keep individual loan accounts for units, but, unfortunately, in some cases a satisfactory standard of work has not been obtained, said witness. “For example, in one section of the Auckland office the accounting is good, while in Gisborne the work is poor. A proficient officer was specially attached to the latter office as from the beginning of January, last in order to improve the accounts.” Describing the budgeting procedure, witness said approval of the individual estimates in respect of the various schemes by the Minister was conveyed by the Under-Secretary to the registrars of the Maori Land Boards by letter, and this constituted sufficient, authority for them to proceed with the work budgeted for subject to certain exceptions. In preparing estimates for a scheme for units, little or no mention was made of security to cover the proposed expenditure or advances, and although this aspect might not have been lost sight of by the field officers and the Minister, the absence,, of records must give rise to doubts.” Estimates Being Prepared. “Estimates for 1934-35 are in the course of preparation and consideration at the present time,” said witness. “Those received so far are in a better form than previously, but they are still deficient in many respects. “A question which must appeal to your Honour and the members of the Commission is whether any undue delay occurred in initiating a stores system,” said the Under-Secretary. “Development operations including the purchases, commenced about January, 1930, and expenditure for all purposes which came to charge during the following six months was as follows: — 1930: February, £845 17/2; March, £5715 6/7; April, £941 1/4; May, £2164 14/5; June, £BO6 8/6; July, £5874 2/3. Total, £16,347 10/3. Treasury Regulation 109 vests in the Stores

Control Board the function of co-ordin-ating and supervising the purchase, use and inter-departmental transfer at stores and the instructions of the boaid must be complied with. Under this clause it was the duty of the Native Affairs Department to make its purchases through the Stores Board, and its failure to do so on all occasions has resulted in severe criticism by the Controller and Auditor-General. Purchase Of Stores. “On July 15, 1931,” he continued, “the Under-Secretary recommended to the Native Minister that the Native Affairs Department be made a purchasing department under the Stores Control Board, and so permit it to make its own purchases. The Minister referred the matter to Cabinet, which authorized that this be done. Apparently no action was taken with reference to the Economy Committee, but on August 3 the Minister addressed a memorandum to the chairman of the Stores Control Board on the subject and the following are his concluding remarks: “I understand that recently your board decided that in regard to the purchase of seed, fertilizers and stock the Department of Agriculture is to have control. While I am prepared to consult that Department when necessary in regard to seed qualities and mixtures and the proper fertilizers to use, . I would prefer to use my own organization for the purchase of its requirements. There are quite enough of formalities to go through now, enough expert views to coordinate and enough delays, without introducing another layer of them, especially one organized on European lines with European standards in view. It would be better to grant the Department exemption in regard to the four lines of seed, fertilizer, stack and fencing material. The chairman replied: It is regretted that your request for exemption for the purchase of seeds, manures and fencing materials cannot be acceded to. The Department was, however, authorized to arrange its own purchases of live stock. The Controller and Audi-tor-General complained to the Undersecretary on May 5, 1933, of his action in purchasing fencing wire without the approval of the Stores Board. Previous complaints had already been made to the Minister of Finance and the Minister of Public Works by the Treasury, Audit Department and Stores Control Board on the non-observance of the regulations by the Department. District Office Accounts. “In December, 1933 when the position of the district office accounts was disclosed, immediate steps were.taken to put them on a proper basis,” Mr Pearce went on. “For sheep the latest shearing tally was taken as a basis and in cases of other live stock special tallies were made. District offices were instructed to complete their store ledger cards and the preparation of live stock returns was insisted upon. District offices now realized that they must keep proper records and accounts of live stock. The work of reconciling the figures as at the date of the last tally is still proceeding, and when completed it is anticipated that sufficient information will be available to record all future transactions concerning live stock. The reason for lack of information in the Head Office was that the instructions concerning the rendering of monthly live stock returns had not been completed. This form makes provision for reporting deaths and natural increases, but practically every district failed to forward a return. The Head Office was not insistent enough in its demands for its preparation. In December, 1933 it realized that without a detailed examination of the accounts and records held in the Maori Land Board offices it would be practically impossible to reconcile the figures as shown in the Head Office accounts.” The Commission adjourned until tomorrow.