B—l [Pt. ll]

Several cases covered by the foregoing explanation arose during the year, and the Audit Office, following past practice, agreed to pass the transactions on being informed by the Government that it would introduce at the earliest opportunity validating or amending legislation, or otherwise provide the authority required. The necessary legislation or authority in the following cases was obtained during the year covered by the report:— (1) Section 7 of the Finance Act (No. 2), 1946, validated payment to retired public servants and teachers who were re-employed, of Salary increases granted on the revision of scales as at Ist April, 1946, without these increases being taken into consideration in computing their maximum retiring-allowances under Part I or Part IY of the Public Service Superannuation Act, 1927. (2) Section 29 of the Finance Act, 1946, validated payment to K. J. Holyoake, Esq., Member of Parliament, of honorarium without deduction for leave of absence taken by him before his return to New Zealand after attending a National Farmers' Conference in England and a Conference of the Empire Parliamentary Association in Bermuda in excess of the period of fourteen days allowed in terms of section 18 of the Civil List Act, 1920. Reference was made last year to cases in which validating legislation or other authority had not been provided at the date of the report. They have since been validated as follows : (1) The War Pensions Amendment Act, 1946, validated payment of additional mothers' allowances to war widows and to wives of ex-servicemen suffering from disabilities, and the Social Security Amendment Act, 1946, validated payments of increased social security benefits to widowed mothers with dependent children, and to deserted wives and wives of inmates of mental institutions. (2) Section 18 of the Finance Act, 1946, validated payment to the GovernorGeneral of an allowance in excess of the amount authorized bv section 4 of the Civil List Act, 1920. (3) Sections 4 and sof the Superannuation Amendment Act, 1946, validated payment of increased superannuation allowances to officers of tlie Defence Force who retired in 1921 and 1930 and in respect of whom special statutory limitations applied. Sections 6 and 11 of the same Act authorized the Public Service Superannuation Board and the Teachers' Superannuation Board to accept from permanent employees who purchased previous temporary service contributions at a percentage rate referable to age of contributor at commencement of contributory service. (4) Section 5 of the Finance Act, 1946, validated unauthorized expenditure in excess of the limit fixed by section 58 of the Public Revenues Act, 1926, for all other services. Validating or other authority is awaited in respect of the following (1) For personnel of the Navy, Army, and Air Force appointed for a limited period to become contributors to the Public Service Superannuation Fund and for payment thereout of retiring-allowances to members who have retired. (2) Payment of the sum of £125,000 out of the Meat Industry Stabilization Account for flood relief in Great Britian. (3) The exemption from payment of national security tax by members of His Majesty's Forces from Ist April, 1947, the date from which new pay scales commence, to the 20th April, the date of the abolition of the national security tax. (4) The payment of family benefits in respect of children of serving personnel from Ist April, 1946. (Note.—Legislation was passed last session granting family benefits to all sections of the community, but section 62 of the Social Security Act, 1938, precluded its application to children of serving personnel.)

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