RAILWAY CONTRACTS OF THE LATE GOVERNMENT.

Globe, Volume XXI, Issue 1790, 15 November 1879, Page 3

RAILWAY CONTRACTS OF THE LATE GOVERNMENT.

The following is tho report of the Railway Committee : Tho committee find that tho total amount of contracts entered into, under Railways Construction Act, up to 30th September, 1879 was as follows :—North Island lines, £21,932 ; Middle Island lines, £171,055; sleeper and other contracts, £30,988; contracts for rails, rolling stock, &c., ordered by Agent-General, £170,027 ; payments made on acount of these engagements in colony, £29,410 ; in London, £10,850. Liabilities on 30th September, 1879: In tho colony, £195,100 ; in England, construction, £62,439 5 rails and rolling stock, £90,737. . . , The committee are of opinion that the provisions of the Railways Construction Act

have not been fully carried out in entering into these contracts, but the Minister, in the conrse he took, was acting on the advice of the then Attorney-General. The safeguards, therefore, which both Houses intended to create with regard to the expenditure of money and the incurring of liabilities, were not observed. The Minister acted upon an opinion of the late Attorney-General, Mr Stout, which was to the effect that the Government were justified in acting under the Public Works Appropriation instead of the Railways Construction Act. The committee desired to have this opinion before them but, though recorded in the office, it has not yet been found. The audit passed the vouchors under the contracts entered into, as the attention of the Controller had not been called to the requirements of the Railways Construction Act, Since his first examination before the committee that officer has felt it his duty to bring the question of the legality of these contracts before the present Attorney-General and Solicitor-General, whoso opinions are adverse to their validity. It would obviously be very unreasonable now to inflict any disability on a contractor, but although the audit will continue to pass vouchors under contracts already entered into, payments will no longer be capable of being made under new contracts ‘unless the provisions of the existing law are strictly carried out. If parliament desires to relax the strictness of the conditions imposed by that Act, it should be done by n now enactment.