WAR EXPENDITURE

Timaru Herald, Volume CLIV, Issue 22671, 26 August 1943, Page 4

WAR EXPENDITURE

i £230,000,000 To March Last j Report On Administration (F.0.P.R.) WELLINGTON. Aug. 25. The report was tabled to-day of the Public Accounts Committee of the House to which had been referred the comment of the Auditor-General on the administration of the War Expenses Account and a summary of the expenditure for war purposes during the whole period. The committee stated it was satisfied from the evidence of the Auditor-General that there was no suggestion of malfeasance intended in any of his comments, and that this was supported by the evidence tendered. Referring to the Auditor-General’s criticism of stores methods, control of contracts, and over-payments, the committee stated it was made abundantly clear by the Auditor-General that practically all his comments were aimed at loose book-keeping methods rather than actual deficiencies. The report stated that criticism of the lack of proper accountancy methods pertaining to the stores and equipment of units on active service was justified, although it was made clear in the emergency conditions obtaining last year, involving the sudden and enormous expansion of our Forces in New Zealand and the Pacific, that it was impossible to obtain or to organise the qualified personnel necessary for the efficient checking of stores. The operations of the Air Force in forward areas made checking impossible. Measures had been taken by Which last year’s experiences should not be repeated. The committee found that the saving of £30,000 on the construction of Army huts which, according to the AuditorGeneral’s report, followed an investigation by his department and the Treasury was due to an increase in the numbers ordered, and that the original contract provided for a review after 2000 had been provided as against total deliveries of 8500.

The committee reported in regard tG the alleged over-payment in connection with sales of impressed motor vehicles, that it was merely in a legal and not a practical sense, and that the evidence did not support the suggestion that savings would be effected by placing the disposal of the vehicles m the hands of impressment officers. A recommendation was made that preference should be given when selling Army vehicles to purchasers whoso vehicles had previously been impressed. Concern was expressed that, owing to the requirements of the Armed Services the Auditor-General’s staff was inadequate to maintain its close control of public expenditure, and the committee recommended that additional officers be provided as soon as possible. It expressed its appreciation of. the high sense of duty shown by the Auditor-General and of the frank and ready manner in which all witnesses supplied information.

The expenditure for war purposes from September 29, 1939, till March 31 last was £230,000,000, and during the same period receipts in the War Expenses Account totalled £239,850,000, the main items being loans £119,806,000, special taxation £79,420,000, transfers of ordinary taxation £8,685.000, and reciprocal aid (lend-lease) £26,812,000.