The Waikato Times AND THAMES VALLEY GAZETTE. Equal and excat Justice to all men, Of whatsoever state or persuasion, religious or political. TUESDAY, FEB. 8, 1891.

Waikato Times, Volume XXXVI, Issue 2895, 3 February 1891, Page 2

The Waikato Times AND THAMES VALLEY GAZETTE. Equal and excat Justice to all men, Of whatsoever state or persuasion, religious or political. TUESDAY, FEB. 8, 1891.

Ol'it renders will have noticed from time to time, that the question of a County Council's liability for the cost of auditing county accounts, has been brought, before the Piako County Council by repeated applications " from i ho Controller and Auditor General, for sums alleged to be due by the Council. The amounts so charged are reasonable in themselves : that is not however the matter of dispute between the Council and the Audit Department, but rather the principle as to the Council's liability to pay any sum at all. To make the matter plain we will give a short resume of the circumstances. In 188'J the Audit Department sent a demand for £10 Cis -Id for auditing the accounts of the Council for the year ending September :50th, ISSS. This sum was claimed by the authority of an Ordcr-in-Couneil issued under the " Public Revenue's Act, 18S0." The Chairman of the Council wrote calling the Auditor General's attention to the fact that by a later Act, viz., " Thp. Counties Act, 188G,'' it was provided that the cost of auditing county accounts should be paid out of the Consolidated Fund. The Auditor General replied that hu would submit the matter to the Crown Luw Ollicors and if they upheld the Chairman's contention, he would then get an Act through the House altering the existing law. I'pon receipt of this the Council immediately communicated with the members for Waipa, W'aikato and Tauranga instructing them to oppose any such Act being made retrospective : and, not noticing any Act brought forward, that appeared to ailed the matter, the above mentioned members evidently thought the Auditor General had relinquished putting his threat into execution. But they were mistaken, for at the very end of the session—we believe on the last day —an Act entitled " The Public Revenues Ad, Amendment Act, ISUO," whioh is made retrospective, n ml was intended to validate the Order - in - Council above referred to was passed. At the meeting of the Piako Council held last week the Chairman said this Act had evidently been drafted in the Audit olltee, and not by u lawyer. Notwithstanding the high authority from which it emanated, the Council still maintains its position, that to accede to the AuditorGeneral's demand would render the members liable, for making an illegal paymeiil. Under these circumstances it was decided to take Counsel's opinion. The opinion obtained, which we publish in e.ctenso elsewhere, fully supports the Council in the position they have taken up. Thus far the Auditor-General had not attempted to use the machinery of the Government against the Council, but at the commencement of this month the Colonial Treasurer—evidently acting in the interests of the Auditor-Central—deducted the sum of £lb' claimed for audit fees from moneys payable to the Council under statute. The Council is clearly right for the following reasons : —First, tho Audit Department is instituted for the purpose of investigating every item of public expenditure, whether by General or Local Government, and insuring the just administration of the people's money. Secondly. In this case the Audit Department has not only not curried out this particular duty, buc has, through the head of the Department, nttcinpled to force certain local bodies into neiLite:; what appears to them, an illegal payment, in which opinion the Piako I 'ouncil is supported by legal advice. Thirdly. As if anticipating an Auditor-General feeling inclined to act in the high handed manner that V,v Fitzgerald has dona, the Legislature Ims provided that should the Audit Department at any time consider that iv local body owes money for auditing, the Department shall prove its claim as any other claimant . does. viz.. through the ordinary

routine of a Resident Magistrates Court. Section U of the Public Revenues Act, 185C>, providos: That in all cases whero a local body is liablo for tho payment of audit fees tho said body shall pay tho same into the Public Accounts, and in tho event of them not doing so •• if ahull be the duly of the Controller and Auditor-f'frni-ral tn recover fhe. mime <ix it debt due to the Croirn in mil/ court of competent /iir/xdicttoii."

It must bo clear to all interested in Local Government administration that a very great principle is involved in this case, i.e., whether the heads of departments in Wellington can, by simply going to the Colonial Treasurer, go behind the law and get their claims, whether legal or illegal, admitted and paid out of moneys tho proporty of any local body, that may happen to be in his hands at tho time; notwithstanding that Parliament has provided specific means by which tho money so claimed can bo recovered. In view of tho present circumslances it is no wonder that the County Chairman expressed his opinion that we might as well be living in autocratic Russia.

A demand has been made by the Council upon the Colonial Treasurer for a refund of tho amount illegally stopped, and in tho faco of the oxisting law ho will be obliged to make restoration. Mr Fitzgerald can then, if ho feels so disposed, take tho action that ho should have done at first. Mr Fitzgerald has an unfortunate record in his actions against local bodies—notably in the question of councillors' expenses, in which ho was ignounuouslv dofoatod in an action

in tho Supremo Court —and as the Chairman of the Council has remarked, if this stylo of conducting tho audit business is to bo persisted in, it would pay tho (rovernmcut to pension tho AuditorCeueral at his full salary. The county cloik informs us that a further demand has boon made for tho cost of auditing for last year, but that Mr Fitzgerald appears to have now found out that it is his duty to request that tho Council will cause the amount to bo paid into tho public account. "Wo understand that in view of the magnitude cf tho principle at stake, should tho Colonial Treasurer refuse to refund tho moneys illegally stopped, the Piako Council intend carrying the matter to the House of Roprcsentalivos, sooner than bo over-ridden by the Government Departments at Wellington. Tho Auditor - General threw down tho gauntlet; his cliftllouge was promptly accepted by the Piako County Council, and wo strongly advise othor Councils similarly situated to await tho issue before parting with their money. In Messrs Chepmell and Tuck, tho Council possess a ohairmau and clork fully competent to hold their own in a logal controversy with the Audit Department, and wo think tho thanks of all local government bodies are due to the Piako County Council for tho firm stand they hove taken.