"THE PUBLIC REVENUES ACT, 1891" (CORRESPONDENCE LAID ON THE TABLE IN A CASE UNDER SECTION 53, RELATIVE TO THE DEDUCTION OF THE CONTRIBUTIONS UNDER "THE GOVERNMENT RAILWAYS SUPERANNUATION FUND ACT, 1902.")

Appendix to the Journals of the House of Representatives, 1907 Session I, B-19

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1907. NEW ZEALAND.

"THE PUBLIC REVENUES ACT, 1891" (CORRESPONDENCE LAID ON THE TABLE IN A CASE UNDER SECTION 53, RELATIVE TO THE DEDUCTION OF THE CONTRIBUTIONS UNDER "THE GOVERNMENT RAILWAYS SUPERANNUATION FUND ACT, 1902.")

Laid on the Table pursuant to Section 53 of " The Public Revenues Act, 1891."

Audit Office, 2nd July, 1907. The Controller and Auditor-General has the honour respectfully to submit to the House of Representatives, in accordance with the provisions of section 53 of " The Public Revenues Act, 1891," a copy of the correspondence in certain cases under that section, where, the Audit Office having declined to pass the pay of members of the Working Railways Department as excluding, for the purpose of the basis for the deduction of the contributions under " The Government Railways Superannuation Fund Act, 1902," the amount paid under the authority of Vote 18, item 30, " Extra pay to members in Second Division, £45,000," in the appropriations for the year 1906-7, the Governor determined the matter in dispute by deciding that the sum of £45,000 is not pay, But allowances within the meaning of the Act, and that consequently the same should not be taken into account when making the deductions. J. K. Warburton, Controller and Auditor-General. The Hon. the Speaker of the House of Representatives.

No. 1. N.Z.R. Maintenance Department, Wellington-Napier Section. Wages, Period ending 13th October, 1906. No. 31, Sullivan (and others), Bs. and 6d., contribution to Superannuation Fund at Bs. Accountant. Contributions to the Superannuation Fund are not based ou the rate of pay herein. J. K. Warburton, C. & A.-General. 16th November, 1906. No. 2. Accountant. Railway Accountant's Imprest Account of 25th October, 1906. The following claims for credit have been disallowed in terms of minute of 16th ultimo on maintenance voucher No. 15056, 13th October period, viz.: — " Contributions to the Superannuation Fund are not based on the rate of pay herein." J. K. Warburton, C. & A.-General. Bth December, 1906.

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& s. d. Jt a. d. No. 3852 ... ... ... 2,997 4 2 Brought forward ... 27,865 6 8 3 930 14 9 No. 3865 5,565 2 0 4 3,547 19 9 6 3,372 3 11 5 996 2 2 7 9,617 18 11 6 ... ... ... 65 6 9 9 ... ... ... 5,604 15 6 7 ... ... ... 7,055 6 1 3870 ... ... ... 4,292 16 10 8 ... ... ... 3,624 14 10 2 ... ... ... 2,079 14 4 9 ... ... ... 2,872 0 8 5 ... ... ... 37 0 0 3861 ... ... ... 89 5 7 : 6 ... ... ... 49 18 1 3 ... ... ... 28 8 9 4263 ... ... . 41 15 10 4 ... ... ... 5,658 3 2 4343 ... ... ... 2,470 15 9 Carried forward ... 27,865 6 8 ' 60,997 710 No. 3. It. A. 180/15. 1905/2147. N.Z. Government Railways, Accountant's Office, Wellington, General Manager, Railways. 19th November, 1906. Allowances of Is., and 6d., per Day to Members of the Second Division. The Audit Office is again returning pay-sheets on the ground that the contributions to Superannuation Fund shown thereon are not based on the rates of pay. This raises anew the question which, in regard to the transactions of the last financial year, «:is settled by Order in Council of 18th April last. I assume that a similar course will have to bo followed in respect to the current year, and I shall be glad if you will have the necessary action taken in order that imprest accounts may be cleared as early as possible. H. Davidson, Accountant. No. 4. J. T. R.Oo/2147. N.Z. Government Railways, Head Office, Wellington, 23rd November, 1906. Solicitor-General, Wellington. Allowances to Railway-men. In November, 1905, the Government decided that certain members of the outdoor staff should, in addition to the rates of pay set forth in the Classification Act, be granted an allowance of Is. per day where the rate was fixed by the Classification Act at 7s. per day, and 6d. per day in the case of other members. These allowances are being continued during the current financial year, and provision for the payment thereof has been made in the appropriations voted by Parliament during the last session. The Audit Department considers iliat superannuation contributions should be made on the amount of these allowances. " The Government Railways Superannuation Fund Act, 1902," however, defines " pay " as being the actual sum paid to a contributor as salary or wages in respect to his services, and not including allowances or payment for overtime, and in " The Government Railways Superannuation Fund Contribution Act, 1903," it is provided in section 2 that the pay of a member shall as from the commencement of "The Government Railways Superannuation Fund Act, 1902,'" be deemed to be the rate of pay at which he is employed, but not including allowances or payment for overtime, and liis contributions shall be deducted on this basis accordingly. Having in view the interpretation of "pay " as set out in the two clauses referred to, the Department's instructions in regard to allowances granted to the men as from the Ist November, 1905, and continued during the current financial year, as voted by Parliament, provide that for the perpOMW of superannuation no deduction shall be made on account of the allowances. The Audit Office, however, disagrees with this arrangement, contending that, the allowances being shown as extra pay to members of the Second Division, superannuation deductions should be made from time to time in the usual way, notwithstanding the fact that the amount is not payable under the Government Railways Department Classification Act. Will you please advise earl] as to the position. A similar question was referred to you in January last. T. Ronatne, General Manager. No. 5. This raises piveiselv the same question as was decided last year by the Governor in Council, and for the reasons indicated in the opinion I then gave, I think that deductions should not be made. See also the opinion of the late Attorney General dated 31st March, 1906, which governs the present MM. Fred. Fitchett, Sol.-General. 6/12/06. Controller and Auditor-General For your information. T. Ronaynk, General Manager. 8/12/06.

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No. 6. The Hon. the Minister of Railway*. Audit Office, 12th December, 1906. I regret that I do not see my way to revoke the Audit Office decision of this question. It is extra pay which is provided by the item on the estimates —that is, " extra pay to members in Second Division." It is not for " allowances or overtime," but only for extra pay that the item provides. The maximum rate of the pay which a member receives under the Classification Act, and the extra rate of pay which he receives under the Public Revenues Act, make " the rate of pay iit which he is employed (but not including allowances or payment for overtime), and his contributions shall be deducted on this basis accordingly," as provided by section 2 of " The Government Railways Superannuation Fund Contribution Act, 1903." There is nothing in that Act, or in the Government Railways Superannuation Fund Act, or in any other Act to restrict the rate of pay at which the member is employed to the maximum rate of pay which he receives in accordance with the provisions of the Classification Act. J. K. Warburton, C. k A.-General. No. 7. The Hon. the Minister for Railways. Railway Department, Wellington, 19th December, 1906. Allowances to Railway-men. The Controller and Auditor-General has raised the question of the deduction of superannuation contributions from the allowances paid to members of the railway staff in accordance with the decision of the Government in 1905. The position is identical with that which occurred in 1905, and in respect to which an Order in Council was issued in April, 1906. In view of the objection of the Controller and Auditor-General I submitted a statement of the tacts to the Solicitor-General, and have since forwarded opinion of the latter to the Controller tuid Auditor-General. The Controller, as you will see by his minute, does not concur in the views expressed by the Department and the Solicitor-General. It will therefore be necessary to issue «n Order in Council in terms similar to that issued in April, 1906. Will you kindly arrange? T. Ronatne, General Manager. No. 8. Hon. Attorney-General. Kindly arrange accordingly. W.H.J. 3/1/07. Hon. Hall-Jones. I concur 'in the opinions of the late Attorney-General and the Solicitor-General. J.G.F. 15/1/07. No. 9. In Executive Council. His Excellency the Governor is recommended to sign the attached Order in Council, under section 53 of "The Public Revenues Act, 1891," deciding that the sum of £45,000 (item No. 30, Working Railways, in the appropriations for the year 1906-7) extra pay to members in the Second Division is not pay as is affirmed by the Audit Office, but " allowances " within the meaning of section 2 of " The Government Railways Superannuation Fund Act, 1902." Wμ. Hall-Jones. Xo. 10. Pi.unket, Governor. By his Deputy, James Prendergast. Order in Council. At the Government House, Wellington, this 7th day of February, 1907. Present: His Excellency the Governor in Council. Wheueas by section fifty-three of " The Public Revenues Act, 1891," it is provided that if the Audit Office declines to pass any credit requisition on the ground that the credit therein is not according to law, the matter in dispute shall be determined by the Governor in Council, having before him the opinion of the Attorney-General thereon : And whereas a dispute has arisen between the Audit Office and the Railway Department respecting certain credit requisitions under the following circumstances, — (1.) Section 2 of " The Government Railways Superannuation Fund Contribution Act, 1903," provides that, for all the purposes of 'The Government Railways Superannuation Fund Act, 1902," the pay of a member shall as from the commencement of that Act be deemed to be the rate of pay at which he is employed (but not including allowances or payment for overtime), and his contributions shall be deducted on this basis accordingly :

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(2.) In the parliamentary appropriations for the year 1906-7, under item 30 (Working Railways), the sum of £45,000 was voted as "extra pay to members in Second Division " ; (3.) The Audit Office holds that the sum so voted is " pay " within the meaning of the section above referred to, and should therefore be taken into account when making deductions for the above-mentioned contributions, whilst the Railway Department holds that it is not " pay " but " allowances " within the meaning of that section, and therefore should not be taken into account when making such deductions as aforesaid; (4.) The said Department has presented credit requisitions for payments made out of the aforesaid appropriation without any deduction as aforesaid having been made, and the Audit Office has declined to pass them on the ground that by reason of the premises they are not according to law: Now, therefore, I, William Lee, Baron Plunket, Governor of the Colony of New Zealand, in exercise of the hereinbefore recited powers, and having before me the opinion of the AttorneyGeneral thereon, and acting by and with the advice and consent of the Executive Council of the said colony, do hereby determine the said matter in -dispute by deciding that the sum of £45,000 appropriated as aforesaid is not " pay " but " allowances " within the meaning of the aforesaid Act, and that consequently the same should not be taken into account when making deductions for the above-mentioned contributions. • Alex. Willis, Clerk to the Executive Council. Approved in Council. J. P. 7 Feb'y, 1907. Alex. Willis, Clerk of the Executive Council. No. 11. The Controller and Auditor-General. For your information. R. J. Collins, Secretary to the Treasury. 7 Feb'y, 1907. Noted. The extra pay will now be passed without the deduction from it of any contribution to the Superannuation Fund, and the correspondence be laid before Parliament in ordinary course. J. K. Warburton, C. & A.-General. 9/2/07.

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