Sir George Grey and the General Government.

Auckland Star, Volume VI, Issue 1681, 8 July 1875, Page 2

Sir George Grey and the General Government.

A Provincial Government Gazette was issued fco-day containing the copies of correspondence which has passed between Sir George Grey, the General Government, and the Superintendent of Wellington relative to the stoppage of the Proviucial capitation. The correspondence between Sir George and Mr Fitzherbert shows that the two Supet in tendents have determined jointly to test "the legality of the General Government action by application to the Supreme Court. His Honor, in a telegram to Dr. Pollen, states that he had been advised that the act was unlawful.

Here follows the opinion of Mr. W. L. Recs, barrister, taken by His Honor the Superintendent, relative to the right of the General Government to stop the capitation money or monies due to the provinces under "The Payment to Provinces Act, 1872," for the payment of interest accrued on the railways to the Onehunga and Mercer railway. On grounds which Mr. Hees proceeds to set forth, he advises his Honor that neither the General Government nor the Colonial Treasurer has any such power as that alluded to, and that the detention of any money due to the province under " The Payments to ProProvinces Act, 1872," on any such ground as that above set forth "is unwarranted, and contrary to law." Mr Rees quotes the 4th sub-section of section 12 of the Immigration and Public Works Act Amendment Act, 1871, and says : " The words—' or against the monies paid to provinces, under the Payments to Provinces Act, 1871, are not in- j tended to provide a fund out of which these! charges are to be re-paid ; they only show the? manner in which the charges are to be made;* The charges are to be made in the manner, af nearly as may be, as other Provincial charga are made, by the law for the time bent in force, charged against the Land Fund, «• against the monies paid to Provincfs under 'Payments to Provinces Act, 187]!' Moreover, the ' Payment to Provinces Al, 1871,' having expired, the capitation ,monlrs were being paid under the Act of 1872. fflr Reea quoted the various sub-sections of Iction 12, for the purpose of shewing fat Section 12 "relates solely to railways,lhe cost of construction of which is to be chafed against the land fund.of any province,'find that the Act itself so defines the scdfc of section 12. That sections 13 and 14 ofthe same Act deal with railways, the cqnaruction and costs of which are to be , chjrged against the proceeds of waste lands of the Crown, specially set apart for the pufoose, and that in those cases special provisfn is made for rendering the provincial rJenue and fund and monies payable to thi provinces under the "Payment of Pnfinces Aot 1871 " liable for any deficiency! The opinion refers to the clauses compelli g the rendering of provincial accounts m tithly, and coincides by unhesitatingly cond nning as illegal the stopping of the cajibation money by the General Government. Under date 30th June an intimatioi [to the Provincial auditor comes from Mr B> it that the Sank of New Zealand has rece: fed instructions to pay into Provinciol JJcount, £3,137 17s 4d, due on the following flay, in reply to a telegram from Mr Lusk, I& Best telegraphs that £3,110 17s 4d, theialance had been posted that day. A letir from Mr C. T. Batkin similar to thafto the Superintendent of Wellington Bpeciajy telegraphed to the Star at the time foil \m and elosea that correspondence. The Bazrite also continues the correspondence which passed between the Superintends*;, Mr

Mackay and the General Goveanmebt relative to the argument under which Ohmemuri was opened. In a letter to ttir George Grey, Mr Mapkay expresses a hope that " your honour will do me the justice to say that you never asked me for a copy of the agreement before I left Auckland for the South." Sir George replies that he did not ask Mr Mackay, because he did not know that an important public document, which should have been handed over to him as the Governor's delegate, was in Mr Mackay's possession. There is some further correspondence in wbich the Superintendent intimates to Captain Fraser, Warden, that agricultural leases will be granted to persons recommended by him.