CHECK ON EXPENDITURE

Taranaki Daily News, 12 November 1934, Page 7

CHECK ON EXPENDITURE

UNEMPLOYMENT FUNDS ADMINISTRATION BY THE BOARD. REPLY FROM DEPUTY-CHAIRMAN. CONTROL OF MONEY EXPLAINED. By Telegraph—Press Association. Wellington, Last Night. Replying to criticism levelled against the administration, of the unemployment fund during the debate in Parliament on the Native Commission’s report, the deputy-chairman of the Unemployment Board, Mr. W. Bromley, said it was not true to say that expenditure was made without any check or control. It was true, however, that weaknesses in control were constantly being detected and perfected, and often higher administration costs were involved.

It was hot fair criticism to demand perfect administration and at the same time to attack administration costs that were obviously most reasonably lbw. Although the. present cost of . administering the unemployment fund, in New Zealand was less than 3 per ,'cent, of the fund handled, it was relatively low when compared with the English administration costs of approximately 8 per cent. It was doubtful whether any phase of the unemployment question had been more 'severely criticised. Who to-day had not heard of the U.B. 32 form requiring an applicant for relief to supply evidence in support of his claim? This form had produced a storm of criticism at intervals. It was not possible to state the number of attempts at fraud that had been detected by the use of that inquiry sheet, but they were very numerous, and many had had their sequel in the Magistrate’s Courts. “To say that there is no check on expenditure of the unemployment fund, meaning that the Unemployment Board has a free and uncontrolled hand to expend in whatever direction it may choose, is simply not correct and, reveals an absence of practical knowledge in general administration,” said Mr. Bromley. CONTROL OVER THE FUND. "Take as an example the building subsidy scheme that has often been criticised, and observe how control over the fund is provided for. The board, having concluded that the problem of employment would be assisted by adding stimulus to the building industry in the form of a subsidy, drafts working details of the proposed scheme, in addition to rules for its operation. A statement must be prepared setting out the reason behind the proposal, an estimate of the cost and the expected effect on employment. “As all expenditure must have the approval of the Minister of Finance, a copy of the proposals is forwarded by the chairman of the board to the Minister, who, having the advice of his department, gives approval or suggests amendments. Approval having been obtained, the copy is then forwarded to the Controller and Auditor-General, supported by the board’s minute authorising the scheme to take effect. “Any voucher for payment, requiring as it does the approval of the Audit Department, must thus conform with the rules for which approval has been obtained. If it is a loan to a mining company for development work a report in support of the application from the Mines Department must accompany the request for approval forwarded to the Minister of Finance, and a contract fou repayment is often drawn up by the department under control of the Solici-tor-GeneraL “Payments under scheme No. 5 and grants to individual prospectors are made through local bodies and from local bodies’ own funds. Repayment, is contingent upon vouchers, establishing to the satisfaction of the audit officer that the expenditure comes properly within the rules approved by the Minister of Finance, acting on the recommendation of the Unemployment Board.