MISTAKES TRACED

Waikato Times, Volume 129, Issue 21525, 13 September 1941, Page 9

MISTAKES TRACED

LAND SCHEME RETURNS

COMPLAINT WAS JUSTIFIED FIGURES IN WRONG COLUMNS WELLINGTON, Thursday Mistakes in the manner in which lome of the information relating to the cost of land development was compiled for a Lands Department return in July, 1939, were responsible lor different figures appearing in the latest annual report of the department. This conclusion was reached by the Public Accounts Committee of the House of Representatives, which, in presenting its report to the House today, stated that the discrepancy was not due to a defect in the accountancy system of the department. The committee stated that the major cause of the discrepancies was the fact that certain types of subsidies on wages were included in a column in the 1939 return headed: *' Total Expenditure Excluding Subsidies.” This was a result of the misinterpretation by some district offices of the meaning of the heading. Headings for Columns Further discrepancy was caused by the fact that the figures were furnished as at December 31, instead of at the end of the financial year, and the district offices endeavoured to estimate expenditure as at the earlier date. The committee considered that the headings of some of the columns in the return and also of a table in the Lands Department’s report were not •ufficiently explicit about the nature of the figures they purported to cover. The figures in the 1939 return were not appropriate to determine t’’e cost of land development an acre, as they included expenditure lor livestock, chattels and current costs.

Having regard to the type of development undertaken the committee agreed that provision must be made for excess labour costs to be written off to the extent that they could not be supported by the productive value of the land. It recommended redrafting of the form of setting out information to ensure that it showed clearly not only the net cost of development, but also actual aubsidies granted for each block and the results of farming operations. Select Committee Recommended It also recommended that the Government should set up a select committee to consider and report on the best methods of development and utilisation in the national interest of land of the type under discussion. The acting-Prime Minister, the Hon. W. Nash, said the discrepancies between the report submitted to the House and the return supplied to the Opposition member for Waitomo, Mr W. J. Broadfoot, were such that they should have been brought to the notice of the House, and Mr Broadfoot was justified in doing so. Not only were some figures, which included £270,000 of subsidies, under a heading which said that subsidies were excluded, but there was also a mistake of £IO,OOO. He added he could understand the first discrepancy, the result of mistakes by district offices, but not the second—a clerical error. Mg Broadfoot Declared Justified Mr Nash said that, taking the return as correct, as he had a right to do, Mr Broadfoot was justified in working out the cost of development an acre as he had done, but the return being wrong his resultant figures were wrong. “I thank the acting-Prime Minister for his very frank statement, which will be much appreciated on both sides of the House,” said the Leader of the Opposition, Mr S. G. Holland. Mr Holland thanked Mr Nash for his generous reference to the member for Waitomo. Mr Broadfoot said that everything he had said in a previous debate had been vindicated. Attention had been drawn to rather slack methods. He did not blame the men on the staff. The small farms scheme was rather a mushroom growth and new methods and systems had to be •volved. k