ASKED TO RESIGN.

Dominion, Volume 3, Issue 849, 22 June 1910, Page 7

ASKED TO RESIGN.

MESSRS. P. HEYES <& J. P. DUGDALE. SEQUEL TO RECENT INQUIRY. PREMIER STILL SILENT. As a sequel presumably to tho recent Public Service Commission of Inquiry into various matters relating to tho administration of the Land and Income Tax Department, Mr. Peter Heyes (Commissioner of Taxes and ValuerGeneral) and Mr. J. P. Dugdalo (Inspecting Valuer) have been asked to resign from lhi> Public Sen-ice. In reply to a Dominion reporter, who inquired as to whether ho would make a statoinont as to the nature of tho charges or on any other point in connection with tho matter, the Primo Minister (Sir Joseph Ward) stated last night that he did not intend to make any statement at present. It is now eiglit months sinco it first becamo known (hat - serious charges had been made in connection with the administration of this . important Department.. ■ What transpired then was that two judges of tho Supremo Court had been appointed to investigate the allegations in camera. As no official statement was forthcoming, the matter was brought up ih llio House. In a statement on November 24 the Prime Minister said that tho charges made against Mr. Heyes "accused him. of irregulariI tics affecting both his integrity and tho administration of his office." "These charges," continued Sir Joseph, "were made in letters addressed to mo, dated November 1 and 4 instant. They contained fho names of taxpayers, and statements as to assessments in connection with their business; . and as there is a provision of our Statute which prevents these letters being made public the Government decided forthwith to ask two judges to act as toiumissioners under tho Commissioners of Inquiry Act, and to investigate and report upon the charges made." Official Statement on the Judicial Inquiry. Regarding the result of the inquiry by the two judges, Sir. Joseph said: — "First, the- judges discharge the Commissioner of Taxes (Mr. Heyes) from any sinister design or dishonest purpose in 'connection with the mattors alleged against him, and consider that tho evidence discloses . a high order of administrative ability, 'great industry, a wide knowledgo of business matters, and a marked faculty for organisation. _ In a lengthy review of the evidence given , thero is disclosed considerable friction between Mr. Heyes and some of tho officers of bis Department. Thero is also disclosed considerable doubt as to * the prudence of the discretion exercised by Mr. Hayes in connection with tho assessment and collection of the taxes due by tho different persons named in tho evidence and in the report.. With regard to tho chief of these matters, tho propriety or prudence of what he did will bo decided shortly, when an opinion is obtained from the Crown law officers, and possibly by reference to the law courts. Under all' these circumstance:,, in fairiicsa to' -M r ;■ Heyes, and in tho interests of the public, the Commissioner of Taxes will be relieved of his duties for three months, and Mr. Richardson, the head of tlie Government Insurance Department, will temporarily be placed in chargo of all the Departments now controlled, by Mr, Heyes." 6 Further Information Sought. Upon December 2 Mr. Massey again reminded the. Prime Minister that he had, on the occasion just referred to, informed the House that in all proas the result of the inquiry by the judges; legal proceedings would follow. He went on to sny 'that if there was to bo a court case or a number of cases Sir Joseph should make a statement to that effect. If there were not to be court cases, tho reportof tho judges- should be laid on the table of the House, with the names of the parties omitted. In reply, Sir Joseph stated: "The position—l want to be perfectly frank with tho House— is a difficult one. . . . First of all, as regards tho gentleman who is acting as the head of the Department: responsibility devolves upon him in connection with matters that were brought up as a result of that inquiry, and as to what steps may be taken. .Ho is acting on legal advice, and thero is no interference by myself as Minister at the head of tho Department as to any action that may bo taken or will Lo taken.; . .. . Tho suggestion that tho judge's report should bo laid on tho tablo is not possible " Mr. Massoy- interjected: "Leavo out all tho names." Sir Joseph: "It cannot be done, 1 assure the hon. gentleman, because I cannot give up confidences. If it .wero possible to do what ho suggests —viz., to leave out tho names and the figures —tho report would be useless; ami if it were mado so as to give, coherently tho outlines of tho proceedings, the names might just as well bo given, because it is perfectly well known there aro a number of men who havo been in that Department but who aro not in it now, who from tho facts given would immediately recogniso the cases, referred to." Vote Taken on the Matter. Next day (December 3), when tho votes in connection with tho Inland Revenue Department wore under discussion, Mr. Wright, M.P. for Wellington South, moved: "That tho item, 'Commissioner of Taxes and ValucrGeueral, £400,' be reduced by £5, as an indication that tho Government should furnish tho Houso with a dcfinjto statement regarding the inquiry recently held by two judges into tho working of tho Land and Income Tax Department." In the course of tho discussion the Prime Minister said that they should not forget that, in respect to tho principal chargo levelled against tho head of tho Department, tho judges in their report did not find in accordance with the charge mado against tho head of the Department. .... If tho House decided by resolution that tho judges' report and tho evidence should bo laid on tho table ; very well. He would not do so; somobody else would havo to do it, and they could accept the responsibility- of doing so. . . . Even if Mr. Heyes asked that the report should bo laid on the table he would give tho samo answer. Upon a division, tho motion was rejected by forty votes to twenty-one. Presumably as thn result of tho recommendations of the judges, one action has already been brought by tho Land and Income . Tax Department. This case is still sub judiee. Certain charges mado against Mr. Hayes havo since been the subject of a Public Service inquiry, with tho result as stated above. Important Change Probable. As a result of the investigation of tho charges, it is more than likely that an alteration will bo mado immediately in connection with an important phase of tho work of tho Department. "I am of opinion," Sir Joseph Ward informed the Houso on November 24,

"that later on a change will require to bo made so as to remove oven the possibility of a doubt being cast upon tho Commissioner of Taxes iu this country in connection with the exercise of the discretion which tho law has placed upon him in regard to taxation. I think thai before remissions or adjustments are mado by the Commissioner of Taxes, as now provided by tho law, in addition to tho advice that may be given by the law officers of the Crown, thoro ought to be co-ordinated _ with him. two officers high in the service—l think it should be the heads of two important Departments—as a board to deal with eases of dispute. That should be tho law of this country so that tlicso high officers should share tho responsibility in deciding important cases whoro disputes aris'o between the taxpayers ancl the Department, and where readjustments may legitimately require to bo mado. ... It would bo highly improper if a Minister of the Crown wore to have referred 'to him the individual troubles that from to time occur, and must continue to arise, in connection with the Department and the taxpayers of tho country. . . . It is ono of the. weaknesses of tho present system that to the head of tho Department is left the sole responsibility of exercising his discretion in connection with individual cases." "It is the intention of tho Government," added Sir Joseph, "that an alteration shall bo made in that respect in the way I havo indicated."