8.—6

1875. NEW ZEALAND.

OVER-EXPENDITURE OF IMMIGRATION VOTE, (CORRESPONDENCE RELATIVE TO THE).

Presented to both Houses of the General Assembly by Command of Sis Excellency.

No. 1. Memorandum No. 38. In reference to an anticipated over-expenditure of the vote for immigration which is proposed to charge upon the savings of former votes, the Commissioners of Audit are of opinion that such a charge would be clearly illegal. By li The Immigration and Public Works Loan Act, 1870," section 14, the moneys raised for immigration were to be expended subject to the provisions contained in the Immigration and Public Works Act of the same year. Those provisions are contained in the 43rd section of the latter Act, and limit the expenditure "until the 31st December, 1871," to £150,000. This will not authorize the issue of any money after that date. The section further provides that all subsequent expenditure must be by vote of Parliament. " The Immigration and Public Works Act, 1871," appropriates £200,000 for defraying the costs incurred in and about the introduction and settlement of immigrants during the two years commencing Ist January, 1872. If this might be strained to include payments after 31st December, 1873, for expenses incurred before that date, it could in no way be held to sanction the payment of expenses incurred in immigration taking place subsequently thereto. The Commissioners are therefore of opinion that there is no authority for expenditure on immigration except the Appropriation Act of 1874; and the whole of the legislation seems expressly designed to prevent that which seems to have taken place, namely, a much larger expenditure on this service in any one year than in others. All expenditure, therefore, beyond the votes must be issued as unauthorized, to the extent to which Parliament lias sanctioned such issues. James Edwaed FitzGerald, 28th January, 1875. . Commissioner of Audit.

No. 2. The Hon. Major Atkinson to the Cosimissionebs of Audit. (No. 120.) Sir, — Immigration Office, Wellington, 20th March, 1875. "With reference to Memorandum No. 38, relating to the over-expenditure of the Immigration vote, I have the honor to remark as follows : — It is clear from the attached minute of the Secretary to the Treasury, and his statement is confirmed by three of my colleagues now in Wellington, that the Immigration estimates for the current financial year were framed by Mr. Vogel under the impression that the unexpended balances, amounting to £240,150 4s. 2d., of the votes granted by the Public Works Acts of 1870 and 1871, were still available lor the introduction of immigrants. • The Commissioners of Audit, however, having decided that these votes have legally lapsed, a very large deficit —notwithstanding every effort on my part to reduce expenditure—will necessarily occur in the Immigration vote, estimated to amount to about £100,00(3, if the immigrants now ordered arrive in due course. The Agent-General however may be unable to execute all the orders that have been sent to England, in which case the deficit will be proportionately reduced.