8.—4.

109. Tt is difficult to estimate what saving could be effected in respect of stock killed on the farm, but probably a nominal appropriation of, gay, £2,000 would suffice. This would show a total saving on the two items of £29,500. 110. We further consider that whatever compensation is provided should be subject to annual appropriation by Parliament. Public Revenues Act, 1926 (Section 133) : Fire Insurance Fund, £10,000. 111. We recommend that the annual contribution of £10,000 to the Fire Insurance Fund should be suspended for the time being, and that any future contributions be subject to annual appropriation by Parliament. Estimated saving at present, £10,000. Hauraki Plains Amendment Act, 1926 : Rates on Unoccupied Crown Lands, £300. 112. We recommend that this expenditure be subject to annual appropriation by Parliament. Land Act, 1924 : Administration Expenses on National-endowment Land, £5,000. 113. We see no necessity for the appropriation of the sum of £5,000 under this heading. This item has been for the purpose of adjusting the departmental accounts, but such an adjustment should be made without an annual appropriation as there is only a book entry involved. Native Land Amendment and Native Land Claims Adjustment Acts, 1922 and 1923: Annual Payment on Account of Arawa District Lakes, £6,000. 114. We are informed that the Arawa Trust Board has offered to forego for three years 8 per cent, of the funds received by the Board as compensation for the relinquishing of local fishing-rights, so that if this offer is accepted there will be a saving for 1932-33 of £480. We recommend that the amount be subject to annual appropriation. Native Land Amendment and Native Land Claims Adjustment Act, 1926 : Payment of Annual Sum to Tuwharetoa Trust Board, £3,000. 115. We recommend that this item be also subject to annual appropriation by Parliament. Native Land Amendment and Native Land Claims Adjustment Act, 1928 : Recoupment of Balance of Loan, Motatau No. 2 Block, £3,610. 116. This is the final payment on this account. Saving for 1932-33, £3,610. Public Revenues Act, 1926 (Sections 30 and 96) : Claims in respect of Unclaimed Money, £300. 117. We recommend that the amount required under this heading be provided by annual appropriation. Public Revenues Act, 1926 (Section 151) : Postage-stamps to Members of both Houses, £2,200. 118. We recommend that this privilege be discontinued. In addition to the allowance provided under this item members enjoy franking privileges during the session, and we see no justification for both the supply of stamps and the continuance of franking privileges. In our view one or the other should be discontinued, and we think that there is less reason for a monthly supply of stamps all the year round than for the granting of franking privileges during the session. 119. We recommend the repeal of section 151 of the Public Revenues Act, 1926, which provides for the supply of stamps to the value of £2 per month to members of the House of Representatives and £1 per month to members of the Legislative Council. Estimated saving, £2,200. Rangitaiki Land-drainage Act, 1910: Rates on Unoccupied Crown Lands, £120. 120. We recommend that this should be subject to annual appropriation by Parliament. Valuation of Land Act, 1925: Acquisition of Land, £100. 121. We recommend that this should be subject to annual appropriation by Parliament. GENERAL. 122. The permanent appropriations represent an unduly large portion of the public expenditure. This, we find, is due to the indiscriminate introduction in financial measures of the words " Without further appropriation than this Act," which practically has had the effect of depriving Parliament for all time of the ability to review and control the annual expenditure. 123. We have therefore recommended that many of the permanent appropriations be abolished and that the expenditure be brought under annual review by Parliament. This would lead to more effective control of expenditure and give to Parliament that right to the annual review of the whole of the expenditure of the country which it should assuredly have. 124. In this connection we have noted that the Treasury has also advocated this reform, which would bring the system into line with that in operation in England, and that the Controller and^ Auditor-General in his report presented to Parliament in 1928 drew attention to the large proportion of the annual expenditure which is exempt from annual appropriation. 125. The Controller and Auditor-General also quoted the practice in England where the expenditure exempt from annual appropriation by Parliament is relatively small and includes only the charges on the national debt, payments to local taxation accounts, King's Civil List, and a number of special salaries, annuities, and pensions. We are strongly of the opinion that it would be in the interests of national finance in this Dominion to dispense with permanent appropriations to a very large extent.

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