B.—l [PT. ll].

Payments made from the New Zealand Public Account, London, not included in the Published Accounts. In my reports for previous years I drew attention to the fact that certain payments made out of the New Zealand Public Account in London under the authority of the Finance Act, 1928, section 20, are not charged against the appropriation provided by Parliament in that section, and are not submitted to the Audit Office for audit in terms of the Public Revenues Act, nor included in the Statement of the Revenue and Expenditure of the Public Account. In those reports I drew attention to the undesirable features of the system followed in connection with such payments. The system still continues, and the following is a list of such payments made during the year 1932-33 which have been excluded from the Public Accounts for that year, so far as it has been possible for Audit to trace them :—

Parliamentary Control of Expenditure. A definite tendency has been noticeable recently to depart from the established methods which have been built up during a long period of years with a view to ensuring the proper and efficient control of Parliament over the public expenditure. This tendency is shown in two directions. Firstly, there is a tendency to give statutory powers to members of the Government and others, the exercise of which powers amounts to the appropriation of particular funds to particular purposes, and thus in effect the power to appropriate public moneys which is constitutionally the prerogative of Parliament is passed on to others. It has always in the past been customary in New Zealand for Parliament to segregate public moneys into particular funds, and to limit the application of each such fund to a particular purpose or purposes. This was in accordance with a well-known constitutional principle, which is stated by a recognized authority as follows : — " ... . . the cardinal principle on which the whole of our financial system is based is that of parliamentary control, and by this is understood not the control of Parliament in its constitutional sense as composed of Sovereign, Lords, and Commons, but control by the Commons alone. ' Upon this fundamental principle, laid down at the very outset of English parliamentary history and secured by three hundred years of mingled conflict with the Grown and peaceful growth, is grounded the whole law of finance and, consequently, the whole British constitution.' " The most ancient, as well as the most valued, prerogative of the House of Commons is the right of supreme control over taxation, to which the right to control issues is a natural corollary. The prohibition of raising taxes without parliamentary authority would be nugatory if the proceeds, even of legal taxes, could be expended at the will of the sovereign. The right, therefore, of appropriation was a logical consequence of the right of levying supplies. ' The chain of historical evidence undeniably proves that a previous and stringent appropriation, often minute and specific, has formed an essential part of the British constitution.'"

XIX

Amounts , Amounts Amounts „ ,. , outstanding 1 - & recovered outstanding Particulars. at 31st March, P ?*J n ™ 8 d ™ n S at 31st March, 1932. IWM-tf* 1932-33. 1933. Sundry payments made by the High £ s. d. £ s. d. £ s. d. £ s. d. Commissioner on behalf of — Post and Telegraph Department 89 17 1 5,324 12 0 4,72119 4 692 9 9 Public Service and Teachers' Super- 2,737 4 1 17,177 15 10 16,168 10 9 3,746 9 2 annuation Funds National Provident Fund .. 71 4 6 713 4 3 636 10 5 14.7 18 4 Government Life Insurance Depart- 533 3 7 891 19 8 1,425 3 3 ment State Fire Insurance Department 12 6 125 10 2 126 12 8 General Assembly Library .. 358 5 4 540 6 6 717 0 10 181 11 0 Cook Islands Administration .. 80 14 4 381 13 7 153 17 3 308 10 8 Niue Island Administration .. .. 2 8 10 18 0 1 0 10 Otago University .. .. .. 206 10 9 105 9 5 101 1 4 Auckland Hospital Board . . .. 31 19 10 31 19 10 Institute for the Blind . . . . .. 0 12 6 0 12 6 Central Command Headquarters .. 6 3 10 6 3 10 Christchurch Press Co., Ltd. .. .. 24 0 0 .. 24 0 0 Wheat Marketing Agency Co., Ltd. .. 114 13 3 114 13 3 J. Holloway, Ltd. .. .. .. 144 144 Mr. W. Nash, M.P. .. .. .. 082 08 2 Captain M. D. Brown .. .. .. 116 116 Sir Cecil Day .. .. .. .. 770 770 Rev. Clyde Carr, M.P. .. .. .. 050 050 Mr. W. A. Veitch, M.P. .. .. 0 14 5 0 14 5 Mr. J. Armstrong .. .. .. 220 220 Mr. W. D. Brewster .. .. .. 060 060 Miss Gibson (steamer fare) .. .. 45 0 0 .. 45 0 0 3,871 11 5 25,599 19 5 24,223 9 9 5,248 1 1