THE UNAUTHORISED EXPENDITURE

Hawke's Bay Times, Volume III, Issue 142, 2 October 1863, Page 3

THE UNAUTHORISED EXPENDITURE

The Otago Provincial Council instead of showing itself, as most legislative bodies do, tenacious of its privileges, seems disposed to be very indifferent to them. Tlie voting of money is, of all the rights such bodies have, the one that is usually most highly prized, and as a consequence the spending of money without authorisation the action most narrowly scrutinised. But by the vote arrived at last night, the members showed themselves inclined to sanction not only the practice but the principle, of spending money without authority for the same first being derived from the only source legally entitled to give it. Owinn- to the impossibility of holding a meeting of the Council at the time when the financial votes of the last Council expired, the necessity was forced on the Superintendent of expending money without authority He did not shrink from the responsibility, but committed himself to an expenditure which, in the aggregate, is stated to amount to £224,000. In his opening address to the Council he very properly alluded to the fact, and added, “you will be asked to sanction the necessary disbursements which I have, under unusual circumstances, authorised.” This was all right enough : and it would seem to have followed, as a matter of course, that a statement would bo laid before the Council giving an account of the unauthorised expenditure. Some suspicion having arisen, that instead of adopting this course, it was proposed to include the unauthorised expenditure in the amounts to be authorised in the general estimates, a member moved last night, that the Council required to see a statement of what was already expended before proceeding into Committee of Supply. The resolution was negatived on division. For the credit of the good sense of the House, it is to be hoped the members voted less from conviction than from the desire to avoid bringing about a ministerial crisis. The Provincial Secretary, with an astonishing amount of ill temper seemed disposed to make it a ministerial question. That it was not entitled to such a character there can be no doubt, but probably the desire not to precipitate a crisis induced many members to overlook the ill temper and vote against their convictions.

It is a pity they disregarded the constitutional aspect of the matter. There is a wide distinction between voting amounts yet to be expended and granting an indemnity for unauthorised expenditure. The arguments used by the members of the Government' in opposing the resolution told rather againstthemselves. They did not deny that as a principle the House was justified in requiring the statement, but they urged the difficulty of its preparation as a reason for not granting it. In other words, this is but to say — because the unauthorised expenditure has attained enormous proportions, and a list of the items would bo a long one therefore the Council should forego requiring an explanation which it would be fully entitled to ask if its privileges had been violated in a lesser degree. The greater the offence the less urgent the expiation, is the deduction from the curious argument with which the Executive sought to bamboozle the Council. The reasons w'hy the return would be so difficult to grant were given in a most unsatisfactory manner. The mover of the resolution professed himself ready to be indulgent to a statement in which the classification might not be very exact. But the members of the Executive held out no hopes of anything in the nature of a distinct account of the "unauthorised expenditure. It is difficult to understand in what manner the accounts have been kept that are found so difficult of reduction. The Provincial Secretary stated that the items were flying about subsidary books waiting for classification before posting. But if such be the case, we can only say that the accountant lias very inadequately performed his duty. He should have opened an unauthorised expenditure account, and classified the several items under convenient headings. But to leave the accounts unposted until the estimates are passed, and then to commence a sort of retrospective book-keeping, are surely modes of practice equally unusual and dangerous when the large amount dealt with comes to be considered. We assert most unequivocally that if the accounts have been properly kept, the return asked for could be prepared in a couple of days. The Pro-

vincial Secretary held out hopes that as tho Estimates progressed, he would be able to indicate what amounts were already expended. But if he can do this, what difficulty can there bo in giving a detailed statement which members may bo enabled to examine in advance ?

In considering the sanctioning of unauthorised expenditure, the Council will have less to make in regard to the policy of tho same, than whether the Superintendent should be indemnified for incurring it. Take, for instance, an amount notoriously expended, £SOO on the Prince of Wales’ Marriage Celebration. It would be in ill taste for any member to make objections in regard to it, supposing he were disposed so to do, unless he meant to take the extreme course of opposing it, and so throw the expense upon the Superintendent personally. Nothing is more undesirable than to place the Council in direct conflict with the chief administrative officer; and yet this would bo the case if the Council disallowed expenditure he has authorised. But how are the members to avoid objecting to the unauthorised amounts unless they are told what they are ?—and if the Government are able to do this, why not furnish the statement requested ? It is true they can do this—they can hold over the heads of members the fear of repudiating expenditure ahead vjincurred, as an inducement for carrying any vote they desire. No opportunity will be afforded of dividing the unexpended from the expended, and the estimates will be forced through more as an Indemnity than an Appropriation Act. We dread to conjecture what will be the effect on the reputation of the Province when it becomes known that the Council is so indifferent to the particulars of the unauthorised expenditure of such an enormous sum as a quarter of a million. Of one thing it is likely to convince the General Government—the impolicy ofgranting the control of large loans to men who show' themselves so little acquainted with the forms of constitutional government. Last night the Council was made acquainted with one tissue of unconstitutional proceedings. Tho immense overdraft at the Bank, the refusal to give security, the keeping the accounts in such amannerthattheunauthorised items cannot readily be arrived at, the desire to make an Appropriation serve the purpose of an Indemnity Act, the merging loans for public works into the ordinary revenue, are all of a piece—thoroughly indicative of utter ignorance of the management of financial affairs.

24th August, 1863. George Cowie, Fsq., Manager of the Union Bank of Australia, Dunedin. Sm, —In reply to your letter of the 22nd instant I have the honor to inform you that the further demands on the Provincial Government made by yon on the afternoon of the 21st instant, to the effect that the Customs Revenue of the province should be mortgaged to you before you would consent to honor any further cheques of the Provincial Treasurer, habe finally determined the Government to withdraw the Provincial account from the Union Bank. Under these circumstances a detailed reply to your letter of the 22nd instant is scarcely necessary. I have the honor to be, Sir, Yours, &c., &c., Joux Hyde Harris, Superintendent.