LAND FOR SETTLEMENTS ACT, 1925 (REPORT ON THE).

Appendix to the Journals of the House of Representatives, 1928 Session I, C-05

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1928. NEW ZEALAND.

LAND FOR SETTLEMENTS ACT, 1925 (REPORT ON THE).

Presented to both Houses of the General Assembly pursuant to Section 109 of the Land for Settlements Act, 1925.

The Land Purchase Controller to the Hon. the Minister eh? Lands. Sir, — Department of Lands and Survey, Wellington, 31st July, 1928. I have the honour to submit a report on land-purchase operations for the year ended 31st March, 1928. The number of properties considered during the year was eighty-four, of a total area of 171,788 acres ; but for various reasons very few purchases were made. Some excellent sheep-country was placed under offer to the State ; but the blocks in question were unfortunately not economically suitable for subdivision, although no doubt they had proved payable propositions when capably farmed in large areas. It was found as a general rule that even those properties which were offered at fairly reasonable prices considered as going concerns could not bear the extra charges entailed by subdivision, roading, &c, and be thereafter offered for selection at prices affording prospective settlers a fair chance of success. The extra loading entailed in the provision of new homestead buildings, fencing, roading, &c, is the chief obstacle to the acquisition of lands for subdivision for closer settlement, and it is only on comparatively rare occasions that suitable land can be bought at prices that will allow of a reasonable return on the capital outlay plus the necessary additional charges. The Land Purchase Board has given the most careful consideration to the offers submitted during the year ; but in the great majority of cases has been unable to make a favourable recommendation for acquisition, as the subsequent economic position did not appear to be assured. Several properties are now under investigation. Possession of the whole of the Tangowahine Settlement has now been obtained. Roading is well in progress, a scheme of subdivision has been drawn up, and it is hoped to offer at least portion of the settlement for selection at an early date. The proposed railway-line to link up Dargaville with Auckland will traverse this property. The Te Wera Estate is being farmed by the Department, and large areas of bush lands are being felled and grassed. Road-construction will shortly be placed in hand, and the metalling of main access has been completed right up to the property. Considerable improvements are being effected in connection with the pastures. Tables are attached giving particulars of the properties considered and lands acquired during the year, together with a balance-sheet and statement of moneys received into and paid out of the Land for Settlements Account. I have, &c, J. B. Thompson, The Hon. the Minister of Lands. Land Purchase Controller.

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Table A. —Number of Properties considered during the Year ended 31st March, 1928.

Table B. —Summary of Estates acquired up to the 31st March, 1928.

Table C.—Return of Land purchased and paid for from 1st April, 1927, to 31st March, 1928.

Land District. ■nt „_. Area of Estates j Number. offere(L Land District. Number. Area of Estates ottered. North Auckland Auckland Hawke's Bay .. Glisborne Taranaki Wellington Marlborough .. Acres. 16 15,566 17 30,616 11 26,731 1 3,815 3 2,944 11 23,800 2 17,653 Nelson Westland Canterbury . . j Otago Southland Acres. 2 4,460 1 J.210 15 25,218 4 19,514 1 225 Totals *'•']■ ! 84 A 171,788 i ■

» Land District. Number. Area. Purchase-money. 1 Auckland (including North Auckland) Hawke's Bay (including Gisborne) Taranaki Wellington Marlborough Nelson Westland Canterbury Otago Southland 99 63 25 146 22 14 2 173 73 26 Acres. 392,139 311,436 27,628 158,630 224,090 48,821 5,125 447,596 293,188 90,862 £ 1,546,236 2,357,100 369,818 2,251,543 755,482 150.473 8,343 3,444,747 1,779,317 459,916 Totals 643 i 1,999,515 13,122,975

Name of Owner. **<*»*• *_*?• Mode of Acquisition. Settlement. Area. Amount paid. List, J. W. C. Hawkins, T. C. Williams, Mrs. A. E, .. Sim, J. Rowse, Mrs. E. Simpson, J. P. C. £ Hutt Valley Tangowahine Te Kura (addition).. Mohaka Consolidation Hutt Valley Simpson Acres. 4 1,406 10 588 r. t 225 £ 2,500 16,468 296 808 350 2,130 Lower Hutt Dargaville .. 12 Otane .. j 30 Mohaka .. ! Petone Otautau By agreement By agreement By agreement By agreement By agreement By agreement Totals 2,233 22,552

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Statement of the Moneys received into and paid out of the Land for Settlements Account (Opening up Crown Lands for Settlement) for the Year ended 31st March, 1928. Receipts. £ s. d. Payments. £ s. d. To Balance at beginning of year .. .. 9,060 311, By Annvial appropriation — Expenditure under Recoveries .. .. .. .. 238 2 2 ; section 47, Land for Settlements Act, 1925 6,574 18 9 Receipts under section 47, Lands for Settle- Interest recouped to Consolidated Fund .. 8,145 19 4 ment Act, 1925 .. .. .. 13,707 17 2 \ Balance—Cash in Public Account .. .. 8,630 311 Interest on investments .. . . .. 344 18 9 £23,351 2 0 £23,351 2 0 j. B. Thompson, Under-Secretary for Lands. L H. O'Donnell, Controller of Accounts. I hereby certify that the Statement of Receipts and Payments has been duly examined and compared with the relative books and documents submitted for audit, and correctly states the position as disclosed thereby. G. F. C. Campbell, Controller and Auditor-General. Ist August, 1928. LAND FOR SETTLEMENTS ACCOUNT. Receipts and Payments Account for the Year ended 31st March, 1928. Receipts. Payments. £ s. d. To Balance, Ist April, 1927 — £ s. d. £ s. d. By Land-for-settlement expenses (vote) .. 3,569 16 3 Cash in Public Account .. 21,515 2 4 Acquirement of estates .. .. .. 22,55.2 110 Imprests outstanding .. 837 13 0 Cost of development, Hutt Valley lands .. 89,541 13 3 Investment Account .. 141,100 0 0 Road access to settlements, cost of surveys, &c. 13,644 11 7 163,452 15 4 Administration expenses .. .. .. 10,308 15 10 Recoveries on account of expenditure of pre- Expenditure under section 8 (2) of Rangitaiki vious years (sale of statutes) .. . . 18 0 0 Land Drainage Act, 1910—Acquisition of Rents, royalties, &c. .. .. .. 376,322 19 1 Land for settlement .. .. .. 76 13 2 Receipts from sales of settlement land .. 52,129 4 7 Recoupments to Discharged Soldiers SettleInterest on sales of settlement land .. 25,424 311 ment Account in respect of amount added Interest on sales of Crown £ a. d. to capital value of land under section 20, lands .. .. 552 11 2 Discharged Soldiers Settlement AmendLess refunds and adjustments 3,200 410 ment Act, 1923 .. .. .. 32,449 6 9 . Dr. 2,647 13 8 Expenditure under section 20 (3), Land Act, Recoipts from sales of Crown land. . .. 42,161 15 8 1924—Payment in respect of land obtained Recoipts from buildings .. .. .. 1,747 8 U for Government works now deemed to be Receipts on account of farm accounts — settlement land .. .. .. 3,707 11 3 £ s. d. Expenditure under section 83 (3), Land Act, Clifton Estate ... .. 10,775 8 0 1924—Payment in respect of value of Te Wora Estate .. 7,184 13 2 improvements .. .. .. 1,505 0 0 17.960 I 2 Interest under section 208 (8), Land Act, 1924 2,47 1 5 Receipts under section 11 (2) (a), Hutt Valley Payments under section 49 (4), Land for Land Settlement Act, 1925 .. .. 95,366 11 5 Settlements Act, 1925—Amount approReceipts under section 49, (2) (3), (4) in priated from sale of Crown land in payment respect of settlement, land converted into for settlement land converted into ordinary ordinary Grown land and National-endow- Crown land .. .. .. .. 228 16 I ment land .. .. .. • .. 1,171 1 9 Payment under section 105, Land for SettleInterest on securities held by Investment monts Act, 1925, in respect of Crown lands Account .. .. .. .. 7,408 1 7 proclaimed land-for-settlements land .. 73 13 6 Miscellaneous recovery of expenditure on Expenditure under Reserves and other Lands estates, &c. .. .. .. .. 3,071 5 11 Disposal and Public Bodies Empowering Act, 1925, section 18 (1) (b) .. .. 9 5 0 Payment of interest under section 13, Land Laws Amendment Act, 1926, on proceeds of sales of Crown land .. .. .. 33,803 19 4 Te Wera Farm Account .. .. .. 18,412 3 I Stamp duty on transfers of New Zealand consolidated stock .. .. .. 6 3 8 Recoupment to the Consolidated Fund of amounts paid in respect of interest on debenture* .. .. .. .. 357,449 8 4 Recoupment of management charges of consolidated stock .. .. .. 1,297 15 9 Recoupment to Ordinary Revenue Account of amount charged thereto for reduction of funded debt " .. .. .. 489 5 10 Refunds under soction 23 (2), Finance Act, 1927 (No. 2) .. .. .. .. 7,608 6 0 Charges and expenses of raising loans .. 2 2 6 Balance at end of year— £ s. d. Cash in Public Account 6,277 5 3 Investment Account —■ Securities held .. 180,325 0 0 186,602 5 3 £783,585 15 8 £783,585 15 8

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Revenue Account for the Yeah ended 31st March, 1928.

Dr. £ s. d. To Administration expenses .. .. .. 9,569 11 1 Charges and expenses of raising loans .. 2 2 6 Depreciation plant .. .. .. 196 1 6 Insurance premiums, rates, &c. .. .. 80 11 6 Interest on loans .. .. .. 345,384 18 6 Interest on redemptions from the Consolidated Fund Ordinary Revenue Account .. 4,636 13 2 Interest under section 13, Lahd Laws Amendment Act, 1926 .. .. .. 60,804 19 0 Interest under section 208, Land Act, 1924.. 247 1 5 Irrecoverable rents, &c\, transferred to Suspense Account .. .. .. 16,750 11 8 Management charges on bonds and consolidated stock .. .. .. 1,297 15 9 Rebates, rents and interest .. .. 33,317 1 0 Remissions of rent, &c. .. .. .. 4,741 5 6 Remissions of rent and rents written off under Deteriorated Lands Act, 1925 .. 4,772 8 1 .Stamp duty on transfers of consolidated stock ' .. .. . . 6 3 8 Land-for-settlements vote expenses —£ s. d. Audit fees .. .. 35 0 0 Access and improvements to settlements .. 702 15 8 Maintenance office equipment .. 9 1110 Miscellaneous .. . . 12 9 Preliminary expenses .. 1 12 0 Printing .. .. 3 19 6 Salaries .. .. 1,819 5 0 Telephone services .. 13 8 11 Travelling-expenses .. 166 0 11 2,752 16 7 Balance brought down .. .. .. 51,810 9 0 £536,410 9 11 To Interest under section 13, Land Laws Amend- £ s. d. ment Act, 1926, previous years .. .. 23,803 19 4 Balance to Reserve Account .. .. 334,705 6 3 £358,509 5 7

Or. £ s. d. By Rents, &c. .. .. .. 411,517 4 3 Interest on. sales of settlement land . . 23,945 14 11 Interest on amounts set aside under section 47, Land for Settlement Act, 1925 .. 28,296 16 8 Interest on capital expenditure— £ s. (1. Hutt Valley .. .. 12,685 16 3 Te Wera .. .. 3,981 3 2 _ 16,666 19 5 Interest on investments .. . . . . 8,309 7 5 Interest on investments in Public Debt Repayment Account .. .. .. 47,646 15 9 Miscellaneous .. .. .. .. 27 11 6 £536,410 9 11 — - £ s. d. ;By Balance carried down .. .. .. 51,810 9 0 Balance forward from Ist April, 1927 .. 132,791 19 10 Interest on sinking funds, previous years .. 171,930 4 5 Adjustment on account previous years' remissions by Revaluation Board charged in error .. .. .. .. 1,976 12 4 £358,509 5 7

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Balance-sheet as at 31st March, 1928. Liabilities. Assets. Capital— £ s. d. £ s. d. Sundry Estates — £ s. d. £ s. d. Loan Account .. .. 8,366,439 12 9 Leased .. .. 8,540,820 12 3 Crown land included. in Unleased .. .. 302,014 19 2 estates .. .. 208,428 0 0 ■ 8,842,835 11 5 Sales of Crown land .. 1,946,331 9 4 Unpaid purchase price (not; 10,521,199 2 1 yet payable)Deposits by lessees of Crown land under sec- Sales of settlement land.. 449,743 9 9 tion 208,' Land Act, 1924 .. .. 7,445 6 1 Sales of Crown land .. 259,617 18 7 Interest on. redemptions from Consolidated Buildings .. .. 80,082 5 9 Fund .. .. .. .. 4,636 13 2 789,443 14 1 Interest on loans— £ s. d. H utt Valley estates— Due and unpaid .. 1,185 5 6 Purchases .. .. 161,592 17 1 Accrued but not due .. 90,324 13 6 Roading .. .. 116,053 911 91,509 19 2 Incidental expenses .. 6,249 4 7 Interest under section 13, Land Laws Amend- Interest .. .. 26,773 19 2 ment Act, 1926.. .. .. .. 50,804 19 0 Payments in advance— £ s. d. 310,669 10 9 Rents .. .. 4,921 10 10 Lews receipts, section 11 Principal instalments on (2) (<«), Hutt Valley sales of settlement land 2.375 10 8 Land Settlement, Act, Principal instalments on 1925 .. .. 95,366 II 5 buildings .. .. 84 6 2 — 215,302 19 4 Sales of Crown land .. 1,19115 10 Te Wcra Estate—Stock, implements, Ac. .. 17,026 15 9 Interest on sales of settle- Opening up Crown lands for settlement (amount ment land .. .. 1,535 16 10 set aside, including interest under section 47, 10.109 (I 4 Land for Settlements Act, 1925) .'. .-. 657,115 oil Sundry creditors—Miscellaneous .. .. 393 13 3 Plant and machinery .. .. .. 3,874 15 0 Rents charged in advance .. .. .. 106,848 1 5 Furniture and fittings .. .. .. 27 0 0 Depreciation Reserve .. .. .. 1,176 9 0 Mechanical office appliances .. .. 23 0 0 Writings-off in Suspense .. .. .. 13,556 510 Sundry debtors for — £ s. d. Reserve Account, including unexpended load- Rents, &c. .. .. 89,207 15 10 ing for roads, &c. .. .. .. 1,377,152 9 2 Less reserve .. .. 2,500 0 0 Accumulated revaluation losses written off under section 22, Finance Act, 1927 86,707 15 10 (No. 2), by discharge of liabilities — Principal instalments on Interest due on liability to sales of settlement land 7,812 9 7 Consolidated Fund for £ s. d. Principal instalments on loans redeemed .. 28.051 6 10 sales of Crown land .. 1.2,165 9 7 Consolidated Fund, for Principal instalments on loans redeemed .. 115,900 0 0 buildings .. .. 3,526 II 5 Reserve .. .. 639,654 12 8 Interest on sales of settlement land .. .. 4,630 3 2 As per contra .. .. .. .. 783,605 19 6 Interest on sales of Crown land .. .. 1,932 3 1 f Interest on investments 2,753 13 9 Insurance premiums, rates, &c. .. .. 37 11 2 Miscellaneous .. .. 808 10 11 120,374 8 6 Postponements, rents . . .. .. 69,214 7 3 Interest accrued but not due .. .. 6,039 19 3 Outstanding rents, &c, Suspense .. .. 13,556 5 10 Revaluation Board determinations — Reductions in value of £ s. d. land .. .. 15,244 10 7 Remissions .. .. 8,674 18 9 Rents written off .. 659 11 3 24,579 0 7 Accumulated revaluation losses written off under section 22, Finance Act, 1927 (No. 2), ....... as per contra .. .. .. .. 783,605 19 6 Investment in Public Redemption Fund .. 10 4 £ s. d. Cash in Public Account .. 6,277 5 3 Investments Account .. 180,325 0 0 - 186,602 5 3 £12,968,437 18 0 £12,968,437 18 0 J. P.. Thompson, Under-Secretary for Lands. J. H. O'Donnell, Controller of Accounts. 1 hereby certify that the Revenue Account and Balance - sheet have been duly examined and compared with the relative books and documents submitted for audit, and correctly state the position as disclosed thereby. The following comments are appended: (1) The Reserve Account (£1,377,152) should be dissected to show its composition; (2) certain questions relative to the authority for writing off losses and charging of compound interest in. respect of liabilities to the Consolidated Fund and also in respect of sinking-fund contributions to be set off against such liabilities are still under consideration.—G. F. C. Campbell, Controller and Auditor-General.

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LAND FOR SETT.LEMr.NTS ACCOUNT (DISCHARGED SOLDIERS SETTLEMENT ACCOUNT). Receipts and Payments Account for Year ended 31st March, 1928. Receipts. Payments. £ s. d. To Balance at Ist April, 1927 — £ s. d. £ s. d. By Administration expenses .. .. .. 2,095 19 7 .. Cash in Public Account .. 23,273 11 6 ' Land for settlement of discharged soldiers- - Investment Account .. 95,000 0 0 Vote, " Expenses." .. .. .. 1,362 13 7 118,27311 6 Land Laws Amendment Act, 1927, section 20, Receipts— Discharged Soldiers Settlement AmendRonts, &c. .. .. 71,149 9 7 ment Act, 1923, section 20 (4)— Sales .. .. .. 1,078 16 4 . Amount recouped to Discharged Soldiers Interest on sales.. .. 494 8 11 Settlement Account, in respect of amount ■Miscellaneous.. .. 575 10 6 added to capital value of land.. .. 6,130 18 1 —; 76,298 5 4 Road access, &c, to settlements .. .. 9,343 6 1 Section 49 (4), Laud for Settlements Act, Refunds of revenue .. .. .. 1,386 0 5 1925 —Amount received in respect of Public Revenue Act, 1926, section 139 — settlement land converted into ordinaiy Interest recouped to Consolidated Fund .. 50,000 0 0 Crown lands .. .. .. 168 16 1 Amortization of debt—Securities redeemed Interest on securities and investments .. 6,830 12 1 and cancelled .. .. .. .. 100,000 0 0 Temporary transfers to other Accounts— Balance at 31st March, 1928 — £ s. d. Adjustments consequent upon Finance Act. Cash in Public Account .. 6,889 18 3 1927 (No. 2), section 16 .. .. 20,000 0 0 Investment Account .. 45,000 0 0 Credits in aid—Vote, " Land for settlement of 51,889 18 3 discharged soldiers' expenses" .. .. 637 11 0 £222,208 16 0 £222,208 16 0 Revenue Account for Year ended 31st March, 1928. Or. £ s. d. ] Cr. £ s. d. To Administration expenses .. .. .. 1,849 7 2 By Accrued rents, &c. .. .. .. 85,339 18 5 Improvements to settlements (Vote, "Ex- Accrued royalties .. .. .. 120 7 4 penses") .'.' '.. .. .. 732 10 7 ; Interest on sales.. .. .. .. 639 18 3 Interest on loans .. .. .. 131,272 311 1 nterest on investments .. .. .. 6,813 12 1 Irrecoverable rents .. .. .. 7,933 14 4 Interest allowed on sinking-fund contributions 1,251 5 1 Losses under Deteriorated Balance carried down .. .. .. 227,903 .12 10 Lands Act, 1925— £ s. d. Reductions in value of laud 18,140 0 0 Reductions in value of buildings .. .. 515 0 0 Remissions of rent .. 292 I 7 Rents written off .. 2,576 6 8 21,523 8 3 Miscellaneous expenses .. .. .. 278 7 5 Rebates .. .. .. .. 5,137 14 4 Remissions of rent .. .. .. .3,341 8 0 Reserve for losses on revaluation of properties 150,000 0 0 £322,068 14 0 £322,068 14 0 £ s. d. £ s. d. To Balance brought down .. .. .. 227,903 12 10 By Interest allowed on sinking-fund contributions Balance from previous year .. .. 289,351 17 1 to 31st March, 1927 .. .. .. 4,106 6 2 Accumulated revenue loss written off under Finance Act, 1927 (No. 2), section 22 .. 289,35117 1 Balance carried forward .. .. .. 223,797 6 8 £517,255 9 11 £517,255 9 11

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LAND FOR SETTLEMENTS ACCOUNT (DISCHARGED SOLDIERS SETTLEMENT ACCOUNT)— continual. Balance-sheet as at 31st March, 1928. Inabilities. A ssets. Capital Account— £ s. d. £ s. d. Estates — £ s. d. £ s. d. Debenture Account .. 2,111,050 0 0 Leased .. .. 1,658,349 0 10 Crown lands in estates .. 5,741 0 0 Unleased .. .. 242,737 19 2 2,116,791 0 0 1,901,087 0 0 Sundry creditors — Unpaid purchase price (not yet payable)-— Interest due on loans — Land .. .. .. .. .. 14,565 1 10 Consolidated Fund .. 81,628 0 4 Buildings .. .. .. .. 69.798 14 9 Due and unpaid .. 256 3 4 Mount Pisa Estate Account .. .. 112 16 8 81,884 3 8 Sundry debtors— £ s. d. Interest accrued but not due on loans .. 10,813 9 2 Rents, &o. .. .. 31.680 8 10 Miscellaneous .. .. .. .. 2,161 12 9 Less reserve for irrecoverPaymonts in advance— able rents .. .. 1,500 0 0 Rents .. .. .. .. 1,607 7 11 30,180 8 10 Principal instalments on buildings .. 42 4 8 Principal instalments on buildings .. 998 4 9 Principal instalments on sales of land .. 355 1 8 Principal instalments on sales of land .. 254 11 I Sales of land .. .. .. .. 45 0 0 Interest on sales of land .. .. 261 6 1 Interest on sales of land .. .. 33 15 9 Interest on purchase price, Mataikona Estate 28,149 0 3 Amounts charged in advance— Interest on investments . . .. .. 260 5 3 Rents .. .. .. .. 20,015 1.7 4 Miscellaneous .. .. .. .. 84 13 2 Interest .. .. .. .. 40 0 0 Bills receivable—Glencoe Settlement Drains Writings-off in Suspense .. .. .. 5,858 10 5 Account .. .. .. .. 240 0 0 Reserve for losses on revaluation of properties .150,000 0 0 Postponements outstanding— Reserve .. .. .. .. 90,930 8 2 Rent .. .. .. .. .. 42,2.88 9 4 Accumulated losses written off under section 22 Principal instalments on buildings .. 800 7 7 of the Finance Act, 1927 (No. 2)— Interest on sales .. .. .. 129 2 10 Remission of interest due £ s. d. Interest accrued but not due on— to Consolidated Fund .. 466,229 7 6 Sales of land ".. .. .. .. 144 6 3 Reduction of Capital Ac- Investments .. .. .. .. 799 9 0 count .. ..1,011,000 0 0 Losses in Suspense Account . . .. 5,858 10 5 Against Reserve Account 26,975 7 0 Depreciation in land-values, &c. .. .. 60,513 13 6 Revaluation Board determinations, &o. — As per contra .. .. .. .. 1,504,204 14 (i Reduction in value of £ s. cl. land .. .. 11,002 7 8 Reduction in value of buildings .. .. 162 18 5 Rents written off .. 523 15 7 Remissions .. .. 4,113 19 7 15,803 1 3 Accumulated losses written off under section 22 of the Finance Act, 1927 (No. 2)— Revenue Account—Loss to £ s. d. 31st March, 1927 .. 289,35117 1 Depreciation of land-values 115,362 14 11 Revaluation Board reductions .. .. 1,099,490 2 (i As per contra .. ■■ .. .. 1,504,204 14 6 Revenue Account .. .. .. 223,797 6 8 Investment in Public Debt Redemption Fund 32,532 12 11 Cash in Public Account . . 6,889 18 3 Investment Account .. 45,000 0 0 51,889 18 3 £3,984,783 6 0 £3,984,783 6 0 J. B. Thompson, Under-Secretary for Lands. J. H. O'Donnell, Controller of Accounts. I hereby certify that the Receipts and Payments, Revenue Account, and Balance-sheet have been duly examined and compared with the relative books and documents submitted for audit, and correctly state the position as disclosed thereb} 7 . The following comment is appended : Interest on the amount held in the Public Debt Redemption Fund has been compounded, whereas there is no statutory provision therefor.- G. F. C. Campbell, Controller and Auditor-General.

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