PUBLIC ACCOUNTS COMMITTEE (INTERIM REPORT OF THE) ON THE UNAUTHORISED EXPENDITURE ACCOUNT.

Appendix to the Journals of the House of Representatives, 1891 Session II, I-09b

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Sess. 11.—1891. NEW ZEALAND.

PUBLIC ACCOUNTS COMMITTEE (INTERIM REPORT OF THE) ON THE UNAUTHORISED EXPENDITURE ACCOUNT.

Brought up 11th September, 1891, and ordered to be printed.

The Unauthorised Expenditure Account (Paper No. 15) having been referred to the Public Accounts, Committee, the Committee have the honour to report as follows: — In reviewing the unauthorised expenditure for the financial year ending 31st March, 1891, amounting to £99,082 3s. 5d., the Committee consider that there are four items which call for special notice. 1. The amount of £306 Bs. lid. paid to the Hon. E. Mitchelson, Minister of Native Affairs, by way of salary and house-allowance from 4th October, 1890, to 24th January, 1891. 2. Payment to the Bey. H. C. M. Watson, as a contribution towards expenses incurred in lecturing on New Zealand in England, £150. 3. £52 Is. Bd., part salary of Mr. Commissioner Edwards, from Ist November, 1890, to 31st March, 1891. 4. Passage of A. Bailey, Esq., to London on his appointment to H.M. Middlesex Begiment. The Committee have taken the evidence of the Controller and Auditor-General, and have ascertained the following facts as regards the above four items : — 1. Salary and House - allowance paid to Hon. E. Mitchelson from 4th October, 1890, to 24th January, 1891. —By "The Ministers' Salaries and Allowances Act, 1887," provision was made for the salaries of six members of the Executive Council, in addition to the Prime Minister. Section 4 : " Provided, that whenever the number of members of the House of Bepresentatives shall be reduced by an Act of the General Assembly below the number now comprising that House, the number of Ministers (other than the Prime Minister) to whom salaries are appropriated under this Act shall be reduced to five." The General Assembly was dissolved by Proclamation on the 3rd October, 1890; consequently the number of members of the Executive whose salaries are provided for as above was reduced to " five." The number of members of the Executive Council, who may be appointed from members of the General Assembly, is limited to ten (eight, exclusive of two Maoris) by " The Disqualification Act, 1878 " ; otherwise there is no limit. There is nothing in the Act of 1887 forbidding the payment of more than five members, but the Act only authorises the payment of that number. There is nothing directly forbidding the payment of an extra Minister. It seems to stand on the same footing as every other service for which no provision is made, and which is paid out of the provision for unauthorised expenditure, on the personal responsibility of Ministers. 2. Payment to the Rev. H. C. M. Watson, £150. —The amount was placed on the main estimates sent down to the House. The item was struck out on 30th July, 1890, on the motion of Mr. Goldie, and a very strong opinion was expressed by the Committee against such payment. It was placed on the supplementary estimates, but was not put to the Committee by the Chairman. As a matter of fact, the money had been paid by the Agent-General to Mr. Watson before the item was discussed in Committee of the House on the 30th July. Payment was made on the following dates : 27th March, 1890, £100 ; 20th June, 1890, £50. The former was passed by the Audit Office as a charge upon unauthorised expenditure on the 13th November, and the latter on 21st October.

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3. Mr. Commissioner Edwards, £52 Is. Bd. —The amount placed on the £ s. d. estimates was at the rate of £1,500 per annum, from 2nd March, 1890 ... 1,621 0 0 The House reduced that amount by ... ... ... ... ... 125 0 0 1,496 0 0 The amount paid Mr. Edwards was ... ... ... ... ... 1,620 19 4 In excess of item voted ... ... .... ... ... ... 124 19 4 From Ist November, 1890, to 31st March, 1891, there was charged to unauthorised expenditure, at the rate of £10 Bs. 4d. a month (which is £125 per annum) ... ... ... ... ... ... 52 1 8 If it was right to do so, an adjustment should have been made transferring from the Supreme Court vote to unauthorised expenditure the amount paid in excess of the rate voted, viz. ... ... ... ... 72 17 8 £124 19 4 It has always been understood that the Audit Office has no knowledge of items, and is guided by the amount voted, only; but where the House has determined that only a certain sum shall be paid for a specific service it ought not to be competent for the Treasury to pay more and charge the excess as for a service for which no provision had been made. 4. Passage of A. Bailey, Esq., to London on his Appointment to Her Majesty's Middlesex Begiment.—lt appears that this charge was refused to be passed to the Volunteer Vote on the 28th August, 1890. On the 2nd September it was returned to Audit, with direction to charge to " unauthorised." On the Bth September the Audit passed it to " unauthorised," pointing out that it should be placed on the supplementary estimates, which, however, was not done. It is in the power •of the House still to refuse its sanction to the payment. 11th September, 1891. Alfbed Saundebs, Chairman. Approximate Cost of Paper. —Preparation, nil; printing (1,300 copies), £1 2s. 6d.

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