D —No. 2

16

PAPERS RELATING TO THE

I shall be glad, therefore, if the sum of £1,498 3s. 9d. now due is remitted to the " Grants to Public Works Account " accordingly. I have, &c, The Hon. the Colonial Secretary, Wellington. W. Reeves.

X.-OTAGO. No. 30. The Hon. W. Reeves to the Hon. W. Gisborne. Office of the Resident Minister for the Middle Island, Sir,— Christchurch, 9th April, 1872. Referring to a letter from the Provincial Treasurer, Otago, of the 25th January, I have now the honor to forward you further correspondence on the subject of the Road Boards subsidy for the Province of Otago. It appears that, in anticipation of the arrangement for payment of Road Board grants of last year being of a similar kind to that now in force, the Provincial Government made advances to Road Boards, expecting to recoup itself when the payments to the Provinces were made. A reply was sent on the 28th February to the Provincial Treasurer, showing that the moiety already paid, viz. £6,779 6s. lid., to the Road Boards Account could not be touched except in accordance with law, and it was suggested that the only way of getting the money repaid was by an arrangement between the parties who could operate on the account. The Province, having already advanced the money, is fairly entitled to be repaid, and it would be very desirable to endeavour to meet the request of the Provincial Government, and if possible to devote the moiety not yet paid to the Road Board Account, to recoup the Provincial chest the sums already advanced by it to the Road Boards. The arrangement proposed by the Paymaster-General is, in the mind of the Provincial Government, one which they do not see their way to effect. I have, &c., The Hon. the Colonial Secretary, Wellington. W. Reeves.

Enclosure 1 in No. 30. Mr. J. B. Bradshaw to the Hon. W. Reeves. Sir, — Provincial Treasury, Dunedin, 25th January, 1872. With regard to our conversation in respect to Road Board payments, I have the honor to inform you that, on the 21st December last, I received a verbal notice from the Manager of the Bank of New Zealand here, that a sum of money, amounting to £6,779 6s. 10d., had been paid into the Bank to the credit of the " Road Boards Account" of this Province by the Colonial Government, through the Manager of the Bank at Wellington. The amount was paid in under " The Payments to Provinces Act, 1871," for a period of six months of the present financial year, ending 31st December, 1871. The conditions imposed on drawing out the money from the Bank are, " That the Provincial Treasurer and Provincial Auditor shall sign cheques, to be countersigned by Chairmen of respective Boards, or persons appointed by subscribers." As Provincial Treasurer I objected to the conditions, and notified to the Bank, verbally, that I declined at present to " act (see clause 17 of Payments to Provinces Act)." My reasons for declining to act are, that the signing of cheques by the Provincial Auditor is unnecessary, and the Payments to Provinces Act is silent in respect to that condition. That the amount paid to the credit of the Road Board Account is very little more than sufficient to repay the Province the amount advanced to Road Boards by the Province up to present date. The Provincial Government, on the faith of a continuation of the Road Board subsidy by the Colony, has been paying subsidy to all Road Boards at the rate of £1 for £1 rates collected, and in some instances £2 to £1, and paid into the Treasury. The sum thus paid amounts to £6,412 10s. 10d., and if the Colonial Government insists on the payment of the £6,779 6s. lOd. to Road Boards, the Provincial Treasury will be deficient the amount it has advanced, and the Road Boards will have received more than the amount they are entitled to. Under the circumstances, I have the honor to request you will be so good as to cause a refund to be made to the Provincial Treasury (equal to the amount advanced by it to the several Road Boards) out of the £6,779 6s. lOd. now in the Bank to the credit of Road Boards Account. The advances made by the Provincial Treasury to the respective Road Boards can be proved by vouchers certified by the Provincial Auditor, and which vouchers can be audited by an officer of the Colony. I have, &c, J. B. Bradshaw, The Hon. W. Reeves, Resident Minister. Provincial Treasurer.