RAM SCREWS

Waikato Times, Volume 114, Issue 19124, 8 December 1933, Page 5

RAM SCREWS

LAND DEVELOPMENT. QUESTION IN PARLIAMENT LETTER FROM AUDITOR-GENERAL. (Times’ Parliamentary Correspondent.) WELLINGTON, Thursday. More information as to the nature of the irregularities alleged by the Controller and Auditor-i General, Mr G. F. C. Campbell, to exist in the administration of Native land development schemes, was sought by the Leader of the Opposition, Mr M. J. Savage, in an urgent question he asked the Prime Minister, the Rt. Hon. G. W. Forbes, in the House of Representatives this afternoon. By way of reply Mr 'Forbes quoted a letter he had that day received from Mr Campbell dealing with the administration of the Native Department. Mr Savage prefaced his question by quoting from Mr Campbell’s report the complete extract criticising the methods adopted with the native land development schemes and Maori unemployed relief. He asked the Prime Minister (i) Whether he had read the section of the Controller and AuditorGeneral’s report which referred to the administration of the finance of the Native Affairs Department. (2) Whether he was in a position to make a statement to the House- in reference to it? (3) Whether he could state if the comments of the Controller • and Auditor-General were based upon proved facts and were a fair representation of those facts? Additional Statements. (4) Whether the .Prime Minister was aware of the additional statements being generally made, and which were now public property, in reference to the freely-alleged misapplication or misappropriation of funds entrusted to the Native Affairs Department, to the effect that at least one prosecution was pending and that several Government auditors, accompanied by a detective, had gone to the Ruatoria district to carry out further investigations? (5) Whether the Prime (Minister could inform the House if any funds granted in the form of subsidies, loans, or grants, by the Unemployment Board for developmental purposes,, or Otherwise, to the Native Affairs Department, or to any other organisation dealing with native matter's, were involved In the oircumstances which had been the subject of the strictures of the Controller and Auditor-General, or were likely to be Involved In the further investigations which It was alleged were taking place?

Mr Campbell'# Letter.

Mr Forbes replied that the question could best be answered if he quoted from a letter he had received from the Auditor-General In reply to an inquiry of his as to what had been done to deal with the situation disclosed in the report. The text of Mr Campbell’s letter to Mr Forbes is as follows: “Since the commencement of the work of developing Native lands and providing employment relief for Natives, the Audit Office has met with many difficulties in carrying out an audit of the expenditure, owing to the want of a proper departmental system and the absence of necessary records concerning the purohase and distribution of livestock, grass seed, and other farming requisites. The administrative duties, instead of being centred In the responsible departmental offloers, were to a large extent being exercised , by the Native Minister by virtue of the ' very wide powers vested In him by Parliament under seotlon 522 of the Native Land Act, 1931. Removal of Objection#. “With the object of removing this objection the Government constituted the Native Land Development Board last session and more recently has made an important alteration in the administrative staff of the Native Department in Wellington, which should lead to better Departmental control. It has however been ascertained that before the board could be expected io function properly the povfers conferred on the Minister by Section 522 above referred to should be exercised by the board Instead of by the Minister. 1 am now advised that the Government has decided . to aslc Parliament to amend tho Native Land Act in such a manner that these powers will in future be exercised by the board instead of by the Minister, In my opinion those changes will result in better control, more efficient and economical administration, and certainly will afford facilities for a more satisfactory audit. One of the most urgent matters connected with tho administration will he the establishment of a proper stores control system. “ The question as to whether the presont method of investigation by Audit Inspectors should proceed or whether it would he advisable lo appoint a Royal Commission or other Independent form of inquiry, was fully discussed at our interview, and this phase of the matter has been carefully considered by Audit. I am of opinion that the present proccduro should continue. Three Audit Inspectors. “ I have now three Audit Inspectors on the East Coast and am. prepared lo send others there if found necessary. \udit inspectors have special training in tills class of work and, as you are aware, have ample statutory authority to enable them lo obtain information concerning public moneys from any person or bank or otherwise; see sections 12 and 15 Public Revenues Act, 1926, and section 22 of the Banking Act, 1908. Audit does not hesitate to make use of these powers when necessary, and I am of opinion TTi.it with the assistance of the Department as it now is constituted, the work of Audit will he much facilitated and will suffice: I may also add that the Audit Office is receiving much valuable assistance from I lie Police Department in identifying natives and translating the Information supplied, etc. • • if a Royal commission were set up it would prove very nitieh more costly than the audit. System, and if It. were required to investigate Hie operations which have been in progress in the various parts of the North Island its investigations would prove aot only expensive hut lengthy.

(Continued In next column.)

“ In my annual report to Parliament I have referred to the fact that irregularities and falsification of documents have been discovered during the audit of the Development schemes and of the distribution of Maori unemployment funds on the East Coast, This matter has been placed In the hands of the police.” “A first-class scandal,” interjected Mr F. W. Schramm (Labour —Auckland East), as the Prime Minister resumed his seat.

Another Labour member: Why don’t you drop the Minister?

IN TE KUITI DISTRICT.

CRITICISM 'OF SCHEMES. ALLEGEDLY CANNOT SUCCEED. i (By Telegraph.—Special to Times.) TE KUITI, Friday. The disclosures by 'the AuditorGeneral concerning transactions in connection with native land development schemes have not conic a surprise to King Country taxpayers. For a long time it has been* alleged that' the two local development schemes could not possibly succeed, owing lo the extravagant methods adopted, all of which were adding to the capital charge in rent, making the cost far in advance of the producing capacity of the land. Such is the position at Waimlha, where ideal opportunities obtained for cheap development. An area of flat pumice country close to the railway has cost as far ns it is possible to ascertain. £l4 IDs an acre. A European fanner developed <( similar area, including cost of freehold, for £7 an acre.

At Mahoenui, where another large block of native bush country has been developed on a community basis, the outlook docs not seem any more hopeful, although the exact cost in Ibis case cannot he obtained.

A press representative has made frequent attempts to obtain particulars. lint on each occasion was unsuccessful. Purchases of Implements ami stock are made through the most uneconomic channels, which, if not immediately remedied, must prove disastrous lo the whole scheme.

In iiinnv eases, where monies have hern advaneed to individual in and around To Knili. the.v have made good. II is the large development schemes with which the public is not satisfied.