380 Auckland Provincial Government Gazette.

(3)

Grahamstown, 24th June, 1875.

To His Honour the Superintendent,
Wellington.

Re Capitation Allowance.

See Immigration Act, No. 75, 1871, clause 12, sub-sections 3, 4, 5, Land Fund chargeable.

G. GREY.

(4)

Wellington, 25th June, 1875.

To His Honor the Superintendent,
Auckland.

I thank you for telegram. The law is clear to me. In the event of loss in working any railway the land fund of a province is chargeable: failing that source recourse must be had to direct taxation. There is no power to stop capitation money.

WILLIAM FITZHERBERT,
Superintendent.

(5)

Wellington, 25th June, 1875.

To His Honour the Superintendent,
Auckland.

Will your Government join with the Provincial Government of Wellington in trying the case of "stoppage of capitation allowance" in the Supreme Court at joint expense? If so, I will propose it to the Executive here.

WILLIAM FITZHERBERT,
Superintendent.

(6)

Auckland, 26th June, 1875.

To His Honour the Superintendent,
Wellington.

This Government will join the Wellington Government in trying in the Supreme Court the case of stoppage of capitation allowance at joint expense of both Governments.

Payment to Provinces Act, 1871, by clause 30, expired on the 1st July, 1872.

G. GREY.

(7)

Auckland, June 28th, 1875.

To His Honour
SIR GEORGE GREY, K.C.B.,
Superintendent.

Sir,—

In accordance with your Honour’s instructions I beg to submit to you my opinion as to the power of the General Government, or the Colonial Treasurer, to deduct from monies to be paid to the Province of Auckland under “The Payments to Provinces Act, 1872,” the amount of certain charges in relation to the Railway to Onehunga and Mercer.

That Railway has, I believe, been constructed under the 12th section of the “Immigration and Public Works Act Amendment Act, 1871.”

I have therefore to advise your Honour that neither the General Government nor the Colonial Treasurer has any such power as that alluded to, as I shall presently proceed to show, and that the detention of any money due to the Province under “The Payments to Provinces Act, 1872,” on any such ground as that above set forth, is unwarranted and contrary to law.

As the question is one of considerable importance, your Honour will perhaps excuse my entering into it at what might otherwise seem unnecessary length.

In the first place I would direct your Honour’s attention to the words of the 4th sub-section, of section 12, of “The Immigration and Public Works Act Amendment Act, 1871,” which, I understand, the Colonial Treasurer claims as giving to him the right, and imposing upon him the duty, of charging these amounts against the Provincial receipts, under “The Payments to Provinces Act, 1871,” which words are as follow:—“The said charges shall be charged against the Land Fund of such Province monthly in the same manner, as nearly as may be, as other Provincial charges, are by the law for the time being in force charged against the Land Fund, or against the monies paid to Provinces under “The Payments to Provinces Act, 1871.”

The words “or against the monies paid to Provinces under ‘The Payments to Provinces Act, 1871,’” are not intended to provide a fund out of which these charges are to be repaid; they only show the manner in which the charges are to be made. The charges are to be made in the manner, as nearly as may be, as other Provincial charges are, by the law for the time being in force, charged against the Land Fund, or against the monies paid to Provinces under “The Payments to Provinces Act, 1871.” This, were it necessary, would admit of easy demonstration, but it is sufficient here to say,—if it be contended that these words give power to debit the said charges against monies paid to Provinces under “The Payments to Provinces Act, 1871”—that the Act of 1871 expired on the first day of July, 1872, and that all capitation monies are paid to Provinces under “The Payments to Provinces Act, 1872.”

Section 12 of “The Immigration and Public Works Act Amendment Act, 1871,” relates solely to Railways, the cost of construction of which is to be charged against the Land Fund of any Province. It is important to bear this in mind in the succeeding argument:

Sub-section 1 of section 12 provides that no charge shall be made against any Province for any Railway until some portion of it be finished and open for traffic.

Sub-section 2 provides:—

1. That when such portion is finished the Colonial Treasurer shall prepare an account of costs of such portion including interest and costs and charges of raising loan if under guarantee, then the amount of monies paid under such guarantee.

2. A copy of such accounts shall be furnished to the Superintendent.

3. The amounts so expended shall be capitalised, and the Minister shall determine the yearly amount to be charged against such Province.

4. One-twelfth part of the said yearly charge shall from and after a date to be fixed by the Minister be charged monthly against such Province in the manner hereafter provided in the fourth sub-section (sub-sec. 4) hereto.

Sub-section 3 provides for determining the amount of current expenses.

Sub-section 4 provides for the payment of all these aforesaid charges, as well the capitalised cost of construction as the current expenses.