TREASURY CONTROL

Waikato Times, Volume 94, Issue 14770, 8 October 1921, Page 3

TREASURY CONTROL

GIFTS TO ALLIES AND DOMINIONS. "In connection with tnc Navy, Army and Air accounts our attention has been called to very large gifts of public property )n Allied Powers, Dominions and institutions. It is clearly a serious matter that ships of Ihc British Navy should he given away willi"Ut tlm consent of Parliament." This observation is from lire third report of the British Committee on Public Accounts issued as u While Paper,

"Stores, elc.,*’ the committee state, "were issued to the Russian forces fighting tho Bolsheviks), between November li, I'.US, and March MI. 1920. to a value, roughly, estimated at £17.828,000. They were surplus to requirements, and nearly nonmarketablc.

“Their nominal value as new was approximately £02,000,000. There was also given in cash -at the same lime a sum of £0,697,000.’’ In this instance the committee say; “So doubt where this country is at war such gifts may be necessary in the circumstances in which Parliamentary sanction cannot be awaited, but the gifts were made a long time after the signing of the Armistice.” "Not to mention smaller items,” the committee draw attention to gifts of H.M.S. Encounter, with certain guns and stores, to the Australian Commonwealth; three mine-sweeping sloops, value about £73,000 each, together with their equipment, to the Australian Commonwealth; two submarine engines with certain spare parts to tile Royal Australian Navy; two H class submarines, with torpedoes and stores, to Canada; certain hulks to an Allied Government.

In the Army Accounts the committee “find that surplus non-marketable ■stores, the value of which when new was £2,000,000, were handed over without charge to the Polish Government with Treasury sanction.” Aeroplanes tor Greece. Fifty surplus aeroplanes, with spare parts for 25 machines, were presented to the Greek Government. Also surplus aeroplanes, not exceeding 100 in any one case, were presented to I lie Dominion Governments and to India, with spares, equipment, motor transport, workshop lorries and hangars, while certain charges for packing, etc., were defrayed.

"In Die case of small items, or where the gifts arc merely a transfer to some, other Department," the committee finally comment ,"il is sufficient lhat they be authorised by the Treasury and reported to Parliament, but where the value exceeds £‘lo.ooo wc consider that the concurrence of Parliament should be first obtained. Such concurrence in these gifts would surely add to Ihcir value in the eyes of the recipients." Alluding to financial control in the Foreign Office, the committee say that "instances, mainly in connection with social missions, have again been brought to our, notice in the year under review, which tend to show lhat there is a want of financial grip over expenditure.’’ The building of railway waggons of a Continental type by (be Ministry of Munitions resulted in fi’23 waggons, costing £2.10.000, being finally rejected by the Ministry of Transport. The waggons are slid awaiting disposal. Treasury Alert. In connection with the expenditure on the Gape to Cairo aerial route, the committee say the Treasury authorised a total expenditure of £II,OOO. Daler. 11 was ascertained lhat the expenditure would be £IO.OOO, and when the matter was reported for covering sanction ihe Treasury considered the scheme should not have been prosecuted without their prior approval. The accounting officer argued that Hie further provision in the Air Voles of a lump sum of £IIO,OOO for civil aviation removed the necessity for Treasure control as to Die method of expenditure. The Treasury were unable to accept lhat contention, and stated lhat ‘They viewed with great concern this clear evidence of the failure of the Air Council to carry out adequately the responsibility placed upon lb cm to control expenditure on Air Services, and they rcqi.est that at an early date they shall receive an assurance that adequate steps will he taken to secure such control in the future.''

"Wc thoroughly endorse these views of Ihe Treasury,” comments the Committee, "and expect to hear next year the results achieved." Officer Dismissed.

The Committee's attention was drawn to the sale by private treaty in April, 1920, for £1 a ton. of material lying at a London depot end described as 170 tons of miscellaneous kite balloon scrap. Some months afterwards it came to light that a large proportion of the material was not covered by the designation of scrap, and that most of it was woith considerably more than £3 a ton. The Deputy Controller, who sanctioned the sale without Inquiry into the character of the goods, had left the service of the department., and could not recall the circumstances; bu the officer who recommended the sale had his services terminated forthwith .

Although the total amount at stake in this instance is comparatively small compared with many of the transactions of the Disposal Board, the Committee regard it as a bad case, and arc glad that disciplinary action was taken against the officer principally concerned.