382

THE NEW ZEALAND GAZETTE.

Interest on Debentures at 8 per cent., half-year ending 30th June, 1865, (page 5)—£14,214 2s. 9d.
This sum is a liability of the financial year 1864-5, and should have been treated as such in the present
account, when determining the Surplus Revenues payable to Provinces.

Collecting together these overcharges on the Revenues of 1865-6, they are found to amount to
£41,768 7s. 10d.(a).

• So large a sum transferred from the liabilities of the year 1864-5 to those of the subsequent year,
makes an important difference in the proportionate amounts of Surplus Revenues payable to Provinces.
The "Undercharges" on the year 1864-5 and "Overcharges" on the year 1865-6 are shewn in
the following statement:--

If this be admitted, then the Surplus Revenues of the Province of Auckland, Taranaki, Marlborough,
Otago, and Southland must be diminished by the sums shewn above in the "Dr." column, and the Surplus
Revenues of the other Provinces increased by the respective sums shewn in the "Cr." column.

The foregoing adjustments are made without reference to the question whether the sums charged
for Interest include the total liabilities of the Colony on that account for the two years 1864-5 and 1865-6.

The Auditor has gone carefully into the Treasurer's Accounts for the purpose of determining the
amount of Interest accrued on Debentures issued under the Debenture Acts 1864 and 1865, from the date
of issue to the 30th June, 1866. The results of his investigations differ widely from the Treasurer's
Statement. This difference arises, no doubt, from the unusual mode of issuing the Debentures under the
Act. Neither the Treasury nor the Audit Department was duly informed in every case of the amounts
issued by the Agents appointed under the Acts, and for a time there was much uncertainty as to the
amount of Interest accrued during the financial period under consideration. The results of the Auditor's
examination are stated below. (b)

It is necessary to add, that the discrepancy between the two statements does not affect the actual
payments to the Bondholders, and interferes only with the adjustment of the Surplus Revenues between
the Provinces.

"Waste Lands Act, 1858," (page 9.)-The salaries paid under this Act have not been voted by
the General Assembly. The Act provides that they should be defrayed out of the Crown Grant fees, but
it does not withdraw from the General Assembly the power to regulate the expenditure on this service.
Executive: £35 16s. 11d., (being savings on the Vote.)---By the Comptroller's Act, all savings
on votes in any financial year are carried to the credit of the Provinces in which the savings are effected.
They are accordingly held in suspense under the head "Savings on Votes,"(c) (page 72).

It will be seen that this new provision, by charging the Revenues with the whole of the votes, instead
of the sums expended, is a returning to the provisions of the Constitution Act, which gives to the General
Government the Revenues specially appropriated by the General Assembly, and divides the remainder
among the several Provinces.

(a.) £20; £22,945 4s. 2d.; £4,589 0s. 11d.; £14,214 2s. 9d.
(b.) The original report mislaid, and no copy retained in the Audit Office of the Statement alluded to.
(c.) Savings on Votes, £33,415 8s. 8d.