8.—13.

1883. NEW ZEALAND.

REQUISITION FOR IMPREST FOR £192,150 (MEMORANDUM ON, BY THE CONTROLLER AND AUDITOR-GENERAL).

Laid on the Table by the Son. Major Atkinson, with the leave of the Souse.

The Hon. the Colonial Treasurer. lam unable to sign this requisition without pointing out that it involves a grave evasion of the law. It is not an effraction of the law such that 1 should be justified in declining to issue the money ; but it evades the clear intention of the Act. The ninth section of " The Public Revenues Act, 1882," provides for the expenditure for two months after the end of the financial year, authorizing the Colonial Treasurer " to issue and pay moneys during such two months, but no longer," subject to certain conditions. The effect of the present requisition, No. 88, is to draw out on the 31st May, the last day on which I can, consistently with the law, issue any money till Parliament meets, the sum of £192,000 from the Public Account, and place it as an imprest in the hands of the Paymaster-General, so as to carry on the expenditure until the meeting of Parliament. If such a step can he taken in an emergency arising from the Parliament not being called together within the time for which supplies are provided, I cannot but point out that the same course might be adopted by the Government at any time and for any purpose, and the whole expenditure of public moneys be changed from that of direct payment to one of imprest payment, and from one of preaudit to the old system of audit after payment, a system which it was the whole object of the Revenues Act to abolish. It is true the law puts no specific limit to the issue of imprests; but they have hitherto been treated as exceptional, and used where direct payment could not be made without inconvenience to the service. But the Audit Office has always felt it its duty to remonstrate against the issue of moneys on imprest for payments which might have been made directly from the Treasury. I therefore feel that the issue of this money, which I have no power to refuse, discloses a mode in which the clear intention of Parliament is being, and may be at any time, evaded, and moneys expended in a manner which the Audit Office must have declined to sanction had the claim been presented to it before the expenditure took place. As the point is one seriously affecting the manner in which the duties of the Controller and Auditor-General are to be fulfilled, I have the honour respectfully to request that this memorandum, together with the requisition to which it relates may be laid before Parliament as soon as it meets. James Edwaed PitzGeeald, May 31st, 1882. Controller and Auditor-General. P.S.' —I should also point out that, when the Paymaster submits his vouchers for credit, and it appears by the receipts that payments have been made before the meeting of Parliament, it may be the duty of the Audit Office to refuse to recognise such payments, or to relieve the Paymaster-General, without the express sanction of Parliament, on the ground that the law expressly forbids, not only the issue, but also the payment, of moneys after the 31st May. J. E. FitzGebald.

The papers shall be laid before Parliament as requested. Thomas Dice, 31st May, 1883. (for Colonial Treasurer.)