B—l [PT. ll]

Lands Department and the Maori Affairs Department proposed that no portion of the costs should be loaded on the lands, while the Treasury and the Commissioner took the view that half the cost of internal or special access roading should be capitalized, but that the expenditure on roads running through the development blocks and on to other districts could properly be charged against vote, " Roads," and not against the lands. It was submitted by both development Departments that losses were inevitable in settling certain lands and that the capitalizing of roading costs would merely increase the amounts to be written off when blocks were settled. It was decided that the costs of constructing all roads would be met from vote, " Roads," on the Public Works Account, and that half the cost of internal or access roading only would be recouped from the Land Development votes on the Land for Settlements Account—(e.g., Maori Land Development). In the past some statutes required roading-costs to be charged on the lands or to be added to what otherwise would be their disposal values—for instance, section 17, Land Laws Amendment Act, 1927, and section 18, Maori Land Amendment Act, 1936. The require-' ment was not embodied in the Small Farms Acts, under which most of the landdevelopment operations of the Lands and Survey Department have been carried out in recent years, nor is it repeated in the Land Act, 1948, which replaced the amendment of 1927. Overseas Travel The Audit Office has continued to maintain a reasonably close watch on the aspects of authority, accounting, and appropriation for expenditure on overseas travel. The question of the justification for such expenditure is usually a matter for departmental and Treasury recommendation, but care is taken to see that necessary authorities, such as Cabinet, Ministerial, and Public Service Commission, are obtained. Accounting has been reasonably good, though delayed at times. The largest claims which came under survey were those of the Havana and Paris Conferences, and although they involved much detail they were very well presented. With the large delegations expenditure on entertaining appears to be high, but possibly this would not be so if figures relating to representation of other countries were available for comparison. Barque " Pamir " The tenth voyage account (Wellington to London and Antwerp and return to Auckland) submitted by the Union Steam Ship Co., Ltd., as agent for the Government, showed a loss of £11,922 16s. 10d., but this figure is not quite final as sundry credits have yet to be received and accounts to be met. The following is a summary of the Account: —

Voyage 10 —Period: 3rd October, 1947, to 18th August, 1948

24

Disbursements. Receipts. Cargo. £ £ 59,093 Wages, victualling, repairs, &c. Freight—Outwards 34,996 Wool and tallow. Freight—Inwards 10,140 Cement and basic slag. Canteen Profits 173 Sale of Stores 1,855 Passage money 6 Excess payments over receipts 11,923 59,093 59,093