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INTERIM REPORT OE THE COMMITTEE ON PUBLIC ACCOUNTS.

Toue Committee have had two letters referred to them from the Superintendent of Otago, claiming reimbursement from the Colony of the amount expended by the Provincial Government on the Geological Survey of that Province. In one of these letters the Superintendent also requests that directions may be issued to Dr. Hector to the effect that the " Geological Survey of Otago may be completed according to the terms of his agreement." Tour Committee, having examined the Superintendent of Otago, the Hon. Captain Eraser (formerly Deputy Superintendent of that Province), and Dr. Hector, and having had before them the agreement between Dr. Hector and the Agents in Scotland of the Provincial Government of Otago, together with other documents, beg leave to report as follows :— 1. An agreement was entered into in Edinburgh, in December 1861, between Dr. Hector and the Agents of the Otago Government. The first article of this agreement provides, " That the Said James Hector shall devote his whole time and capabilities in making and bringing, to a completion, and furnishing the said Superintendent and Provincial Council with, an accurate Geological Survey of the said Province, and shall deliver the same, with all necessary plans, sections, and others, to the said Province of Otago ; said engagement to continue for the period of three years from and after the Ist day of January, in the year 1862, and he shall from time to time, as he may be required, furnish to the said Superintendent reports of his proceedings, it being declared that the said James Hector shall be allowed to conduct his examination of the Province in any manner he may deem best suited for a scientific geological reeonnoisance, subject however to the approval of the said Council and Superintendent in the matter of expenses; and the said James Hector shall also bo entitled to publish the results of his investigation for general, scientific, or geological purposes : " and the fifth article stipulates," That the said James Hector shall furnish, at the completion of the survey, specimens of all minerals descriptive of the results of the investigation made in virtue hereof, and of the minoralogical formation of the Province." 2. In pursuance of this agreement, Dr. Hector left England in December, 1861, arrived in Otago on the 13th April, 1862, and remained in the service of the Provincial Government until the Ist of April, 1865. It is admitted on all hands that, during the period of his residence in Otago,, the whole of his time was devoted to the service of the Province. The manner in which he was occupied is fully stated in the annexed memorandum. 3. When ho left the service of the Provincial Government he entered that of the Colonial Government, and has since been engaged in the Geological Survey of the Colony at large. Both Dr. Hector and other members of the Geological Stafi' have occasionally been engaged in the Provinces of Otago and Southland. It is not alleged that any objection was raised by the Provincial Government to Dr. Hector's resignation : the period of service stipulated in his agreement had expired. 4. With respect to the amount of money which the Province of Otago has actually expended on the Geological Survey, the statements laid before your Committee are conflicting. An account furnished by the Superintendent puts the amount at £13,890 17s. It seems probable, however, from an inspection of the account itself, as well as from a memorandum furnished by Dr. Hector, that the £13,890 17s. includes disbursements not fairly chargeable against the Geological Survey ; for instance, an item for buildings, £1,287 ss. 4d., can hardly be so chargeable. In the event, therefore, of any adjustment of account between the Colony and the Province for this outlay taking place, a statement in detail of the items of which this account is composed would have to be furnished. 5. As the Superintendent, in the letter in which he transmits copy of the agreement with Dr. Hector, requests that that gentleman may bo directed to complete the Geological Survey of Otago, "in terms of his agreement," your Committee have directed their attention to this question. The agreement provides, " That the said James Hector shall devote his whole time and capabilities in making and bringing to a completion, and furnishing the said Superintendent and Provincial Council with, an accurate Geological Survey of the said Province, and shall deliver the same, with all necessary plans, sections, and others, to the said Superintendent of the said Province of Otago ; said engagement to continue for the period of three years from and after the Ist day of January, in the year 1862; and he shall from time to time, as he may be required, furnish to the said Superintendent reports of his proceedings, it being declared that the said James Hector shall be allowed to conduct his examination of the Province in any manner he may deem best suited for a scientific geological reeonnoisance, subject however to the approval of the said Council and Superintendent in the matter of expenses ; and the said James Hector shall also be entitled to publish the results of his investigations for general, scientific, or geological purposes." The question raised by the Superintendent is whether this part of the agreement has been carried out. The statements of the results of his labours, which Dr. Hector actually has furnished to the Provincial Government, appear to be as follows :■ — 1. 27th August, 1862.—Report relative to the distribution of Gold in the Province.— (Published.) 2. 25th September, 1862. —Progress Eeport. —(Published.) 3. April, 1863. —Eeport of first Expedition to West Coast.—(Published in newspaper.) 4. Bth June, 1863.—Progress Eeport of West Coast Expedition.—(Published.) 5. sth November, 1863.—Eeport of second West Coast Expedition.—(Published.)

Vide Appendix, p. 15, No. 4.