B.—l [PT. ll].

IV

revenues of New Zealand. The amendment was intended to exclude from the operation of the Act the loans raised under the Rural Advances Act, 1926 (these loans are not charged on the public revenues), but it has been found that the amendment has the effect of excluding not only the ruraladvances loans, but also other loans amounting to £1,333,163 raised under the New Zealand Stateguaranteed Advances Act, 1909, for the purposes of Land for settlements, Guaranteed mining advances, Native land settlement, Rangitaiki land drainage, and Opening-up Crown land for settlement, and under the Urewera Lands Act, 1921-22, section 10. Annual payments under the Repayment of the Public Debt Act, 1925, were being made in respect of this £1,333,163, but as section 10 of the Finance Act, 1929, was made retrospective to the Ist April, 1927, it appeared that an adjustment of such payments would be necessary. The Treasury has advised, however, that it was not intended to exempt the loans amounting to £1,333,163 from the operation of the Repayment of the Public Debt Act, and that amending legislation will be introduced to cover the position. There appears to be no reason why the loans in question should be exempted, and on the assurance that validating legislation would be introduced the payments under the Repayment of the Public Debt Act, 1925, were allowed by Audit to stand. General Purposes Relief Account. During the year a sum of £5,200 was received from the Wairnarino Fire Relief Association, the Association indicating that it desired the sum to be held as a national fund for assistance by way of loan to sufferers in cases of disaster. With this end in view the moneys were credited to the General Purposes Relief Account, this account having been established under section 136 of the Public Revenues Act, 1926, for the purpose of assisting persons who have suffered loss through fire, flood, earthquake, or other natural disaster, or in aid of persons engaged in works of production. There was, however, no authority of law for crediting these moneys to the General Purposes Relief Account, and the Treasury indicated that it was proposed by the Minister of Finance to introduce legislation validating the payment of the moneys by the Association, and the crediting of them to the General Purposes Relief Account, and on this assurance the credit was passed by Audit. Payment out of Education Purposes Loan Account in respect of Buildings used by the Education Department for Dental Clinics. Education Purposes Loan Act, 1919. —Under section 3 of the Education Purposes Loan Act, 1919, and the schedule thereto, payment is authorized out of the Education Purposes Loan Account, of money required for the acquisition of land for the purposes of any school or other institution, the establishment or maintenance of which is authorized by the Education Act, 1914, and for the erection, structural alteration, improvement, and equipment of buildings used for the purposes of any such institution. There is no statutory provision for any portion of the cost of buildings used for dental clinics to be paid for from the Education Purposes Loan Account. The Audit Office, however, agreed to pass vouchers in respect of buildings used for such purpose on the assurance of the Hon. the Minister of Education that a validating clause would be provided therefor. Railway Department.—Heavy-traffic License Fees. In my annual report for the year ended 31st March, 1929, it was stated that vouchers submitted by the Railway Department supporting the payment of fees for heavy-traffic licenses issued in connection with its omnibus services were queried, as it appeared to the Audit Office that the Crown was not legally liable for fees of this description. On the representation of the Railway Department that the late Railway Board had decided as a matter of policy to pay the same fees in respect of the Department's omnibus services as would be payable by an individual engaged in a similar enterprise, Audit agreed to pass the vouchers conditionally on the expenditure being charged to " Unauthorized," and an undertaking being given that validating legislation would be obtained. In due course provision was made next session for the necessary validation by a clause in the Transport Department Bill, but, owing to the elimination of the clause dealing with the matter along with other clauses in the same Bill, the necessary legislation was not passed. An assurance has been given by the Prime Minister that the necessary legislation will be introduced this session. Losses Incurred by the Department of Health in Respect of the Failure of Immigrant Patients to pay Charges for Maintenance and Treatment in Hospitals. In the past it has been the practice, where an immigrant having no particular domicile has been a patient in a hospital administered by a Board and has been unable to pay the cost of maintenance and treatment, for the charges to be met by the Government from an appropriation under vote " Department of Health, Hospital treatment of immigrants." In the case of hospital institutions under the control of the Department of Health the practice, however, has hitherto been for all sums owing for maintenance and treatment by indigent immigrants to be written off the books of the Department with the authority of Parliament in terms of section 3 (3) of the Public Revenues Act, 1926.