I.—lld

2

EEPOET.

The Committee to which was referred Paper 8.-19, 1905, being the correspondence in a case under section 9 of "The Public Eevenues Act Amendment Act, 1900," relative to refunds under " The Preferential and Reciprocal Trade Act, 1903," has the honour to report as follows : — That it has carefully considered the correspondence referred to, and has examined Mr. J. K. Warburton, Controller and Auditor-General, and Mr. J. B. Heywood, Secretary to the Treasury. That the facts of the case are as follows : Vote No. 43 of the Appropriations for the Consolidated Fund Services, Class IX., Customs Department, 1904-1905, Miscellaneous Services, contains an item (No. 13) of the following nature : " Eefund of duty, under ' The Preferential and Reciprocal Trade Act, 1903,' on artificial limbs imported, £11." Amounts of £3 12s. and £1 16s. were charged to this item. They are not challenged. An amount of £9 was then sought to be charged as a refund of duty paid on artificial limbs per s.s. " Ventura." This would have caused the vote to be exceeded by £3 Bs. That the Controller and Auditor-General holds that section 3 of " The Preferential and Reciprocal Trade Act, 1903," which provides for the levying of certain duties upon certain articles, prohibits the refund of any of that duty after it has been levied, and the only authority for refund is contained in section 3 of " The Public Revenues Act Amendment Act, 1900." That section limits the amount of duty to " the total sum of the item voted." The excess of £3 Bs., being held to be a prohibited payment, could not be charged to " unauthorised." That the Secretary to the Treasury contends that " The Customs Laws Consolidation Act, 1882," and "The Preferential and Reciprocal Trade Act, 1903," make provision for the levying of duties, and, being silent on the question of refunds, these statutes do not prohibit the refunding of amounts, and that therefore the excess of £3 Bs. can rightly be charged to "unauthorised." That there exists no tribunal to which the dispute between the Controller and Auditor-General and the Secretary to the Treasurer can be referred to obtain a decision binding upon both, and the only course which the Controller and Auditor-General can adopt, holding the views he does, is in accordance with tbe provisions of section 9 of " The Public Revenues Acts Amendment Act, 1900," to submit a copy of the correspondence to the House of Representatives. That the difficulty can best be met in future by postponing the payment of any excess remissions over the item voted until a new vote has been obtained or by legislative provision for payment of remissions. 17th October, 1905. Robert McNab, Chairman.