ADVANCE OF £600,000 OUT OF THE PUBLIC ACCOUNT, WITHOUT APPROPRIATION, IN CONNECTION WITH THE PURCHASE OF CHEESE AND BUTTER FOR THE IMPERIAL GOVERNMENT.

Appendix to the Journals of the House of Representatives, 1918 Session I-II, B-03

8.—3

Session TT. 1918. NEW ZEALAND

ADVANCE OF £600,000 OUT OF THE PUBLIC ACCOUNT, WITHOUT APPROPRIATION, IN CONNECTION WITH THE PURCHASE OF CHEESE AND BUTTER FOR THE IMPERIAL GOVERNMENT.

Laid on the Table of the House of Representatives by Leave

The Audit Office, Wellington, N.'Z., 24th October, 1918, Memorandum for the Hon, the Speaker of the House of Representatives, Wellington. The Controller and Auditor-General has the honour to report for the information of Parliament that, owing to the exigencies of the present war and the conditions created thereby, it was necessary for the Audit Office to authorize the issue of advances out of the Public Account to the extent of £600,000 in connection with the purchase of cheese and butter for the Imperial Government, no funds having been appropriated by Parliament for such purpose; and this was accordingly done on the undertaking of the Government to introduce validating legislation and to indemnify the Audit Office in respect of such issue. The amount advanced was repaid by the Imperial Government in December. 1917. A copy of the indemnity is attached hereto. Robert J. Collins, Controller and Auditor-General. To the Controller and Auditor-General and the Paymaster-General. Whereas arrangements are in process of completion whereby His Majesty's Government of the United Kingdom will acquire by purchase the whole output of butter and cheese in New Zealand *so far as available for export : And whereas the Government of New Zealand is acting on behalf of His Majesty's said Government in respect of such purchase: And whereas it is necessary in the public interest that pending the completion of such arrangements advances should be made by the New Zealand Government to dairy companies on the security of the butter and cheese so to be purchased from them by His Majesty's Government : And whereas no funds have been appropriated by Parliament or are otherwise available by law for the purpose of such advances: Now, therefore, we, William Ferguson Massey. Prime Minister of New Zealand, and Joseph George Ward, -Minister of Finance, do hereby, in consideration of the exigencies of the present war and the conditions created thereby, request the Controller and Auditor-General to issue out nf the Public Account, and the Paymaster-General to pay out of the Consolidated Fund, notwithstanding anything in the Public Revenues Act. 1910. or in any other Act to the contrary, such sum not exceeding six hundred thousand pounds as may be required for making advances to dairy companies, on the security of store warrants, for butter or cheese, such advances to be approved by the Controller of the Imperial Government Supplies Department, and to he charged upon all moneys to be received by the dairy companies for the sale of butter or cheese to His Majesty's Government of the United Kingdom, and to be repayable on demand. And we undertake during Ihe next ensuing session of Parliament to procure legislation validating all issues, payments, and advances so made, and indemnifying the Controller and Auditor-General, the PaymasterGeneral, and all other officers concerned, for all things done bv them in pursuance of these presents. Dated this 23rd day of November, 1917. W. F. Massht, Prime Minister. J. G. Ward, Minister of Finance.

A/i/H-oxuiiatc Cant of Paper.- Preparation, not given; printing (650 copies), £1

Authority : Marcus F. Marks, Government Printer, Wellington.—l9lB,

Price 3d.]