8.—19.

(2.) In the parliamentary appropriations for the year 1906-7, under item 30 (Working Railways), the sum of £45,000 was voted as "extra pay to members in Second Division " ; (3.) The Audit Office holds that the sum so voted is " pay " within the meaning of the section above referred to, and should therefore be taken into account when making deductions for the above-mentioned contributions, whilst the Railway Department holds that it is not " pay " but " allowances " within the meaning of that section, and therefore should not be taken into account when making such deductions as aforesaid; (4.) The said Department has presented credit requisitions for payments made out of the aforesaid appropriation without any deduction as aforesaid having been made, and the Audit Office has declined to pass them on the ground that by reason of the premises they are not according to law: Now, therefore, I, William Lee, Baron Plunket, Governor of the Colony of New Zealand, in exercise of the hereinbefore recited powers, and having before me the opinion of the AttorneyGeneral thereon, and acting by and with the advice and consent of the Executive Council of the said colony, do hereby determine the said matter in -dispute by deciding that the sum of £45,000 appropriated as aforesaid is not " pay " but " allowances " within the meaning of the aforesaid Act, and that consequently the same should not be taken into account when making deductions for the above-mentioned contributions. • Alex. Willis, Clerk to the Executive Council. Approved in Council. J. P. 7 Feb'y, 1907. Alex. Willis, Clerk of the Executive Council. No. 11. The Controller and Auditor-General. For your information. R. J. Collins, Secretary to the Treasury. 7 Feb'y, 1907. Noted. The extra pay will now be passed without the deduction from it of any contribution to the Superannuation Fund, and the correspondence be laid before Parliament in ordinary course. J. K. Warburton, C. & A.-General. 9/2/07.

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