687
contractor at any time if he thinks he is losing money.
The Auditor protests against such a system and I have
directed Mr. Eves to notify the contracts he intends to
make. Sir M. Nathan's rule I understand was that all
expenditure in excess of $500 required sanction. I am not
myself disposed to maintain so rigid a rule, but if the
Colony is to have any control whatever over the expenditure
of its own funds, it is of course necessary that the
Government which is held responsible should be aware of
the general methods of expenditure, and of the nature of
the contracts entered into. I may observe that in the two
or three cases in which the Chief Resident Engineer has
informed me of larger contracts which he proposed to make
he has in each case added that he had expostulated with
the proposed contractor telling him he would lose money
by his offer. The tender system is most thoroughly understood
here, and the local Public Works Department have
an intimate knowledge of the contractors and should be
able to assist in such a matter without interfering with
the Chief Resident Engineer's complete authority both as
to what work and on what conditions he proposes to let to
contract and as to acceptance of tenders.
12.
If I have somewhat severely criticised
18.
687
contractor at any time if he thinks he is losing money.
The Auditor protests against such a system and I have
directed Mr. Eves to notify the contracts he intends to
make. Sir M. Nathan's rule I understand was that all
expenditure in excess of $500 required sanction. I am not
myself disposed to maintain so rigid a rule, but if the
Colony is to have any control whatever over the expenditure
of its own funds, it is of course necessary that the
Government which is held responsible should be aware of
the general methods of expenditure, and of the nature of
the contracts entered into. I may observe that in the two
or three cases in which the Chief Resident Engineer' has
informed me of larger contracte which he proposed to make
he has in each case added that he had expostulated with
the proposed contractor telling him he would lose money
by his offer. The tender system is most thoroughly under-
-stood here, and the local Public Works Department have
an intimate knowledge of the contractors and should be
able to assist in such a matter without interfering with
the Chief Resident Engineer's complete authority both as
to what work and on what conditions he proposes to let to
contract and as to acceptance of tenders.
12.
If I have somewhat severely
criticised
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