HONORARIA

Bay of Plenty Beacon, Volume 6, Issue 81, 15 June 1943, Page 8

HONORARIA

ALLOWANCE TO CHAIRMAN

THE LEGAL POSITION

In a circular to ail County Councils the. New Zealand Counties Association has dealt exhaustively with the question of honoraria, the sum usuallj* set aside hj' local bodies to offset some of the expenses usual!}* encountered by that ofTieer in carrying out his duties. it is quoted that Section 81 of the Counties Act 1!)20 provides that "the council may from time to lime vetc the actual travelling expenses o- r the chairman when travelling on the business of the County, but such •expenses .shall not in any one year exceed £100, or the Council may Vote a lump sum, not exceeding the sum of £100, to the. chairman in each year in lieu of travelling expenses." It should be noted carefully here that the expression "business of the Council" which is contained in many of the statutory references to travelling expenses and allowances, means in the opinion of the Audit Office, business performed for the Local Authority in the carrying out of some statutory function, and it must be a service that the member Is required or authorised by statute to perform, or in respect of which fee is specially qualified to assis* liis Local Authority. The following rulings relating to Section 84 have been decided on by the department:— 1. Iff. .the chairman is paid an allowance in lieu of travelling expenses, such allowance covers all travelling expenses of the. chairman incurred- on "business of the County" incurred within or without tlie County. Travelling Expenses Thus a county chairman in receipt of the .£IOO allowance, cannot travel to Wellington on County business except at his own expense —i.e. out of his allowance. If, on the ether hand, a chairman's actual travelling expenses are paid by his council in lieu of an allowance, he anay travel to Wellington on County Jbusiness as often as he likes at his council's expense, provided his total travelling expenses for the year do not exceed £100.

2. Where an annual sum has been voted to the chairman in lieu of actual expenses while travelling on the "business of the County" any expenditure on such travelling in excess of the allowance cannot be made good from "unauthorised" 3. Where however the chairman incurs expenses in his official capacity at the request or with the authority of the council, on matters that relate to the general interests of the County, but that are. not strictly within the scope of the council's activities, there is nothing to prevent the amount of his actual expenses being refunded from "unauthorised" within the limits provided by the Public Revenues Act 1926. Other Local Bodies The annual allowances etc. payable to chairman of other Local Authorities are:— Borough Councils (Mayor) not exceeding £500 annually; Education Board, not exceeding £100 in any one year; Electric Power Board, not exceeding £300 in any one year; Harbour Board, not exceeding £200 in any one year; Hospital Board, an amount equal to one fifth per cen- j turn of maintenance expenditure for previous year, but not exceeding £230 but if one-fifth pep centum maintenance expenditure ,does not cxcccd £100, a sum of £100.