The Secretary to the Treasury has forwarded the following memorandum asking for advice:

I shall be glad if the Secretary will please cause this office to be furnished with an opinion as to whether payment of compensation or refunds of medical expenses consequent on injuries sustained by an officer (whether in the execution of his duty or otherwise) requires the approval of the Governor-General under section 78 (3) of the Public Service Act.

The case in question is as follows:

A messenger named A.B.C. was injured by a lift in Parliament House in the execution of his duty. There was no neglect on the part of the messenger. The President of the Senate approved of the payment to Dr D. of £9.9.0 for professional attendance on the messenger and of £5 to E.F.G., Dentist, for dental services rendered necessary owing to the injuries; also of the repayment to the messenger of £1.5.3, being expenditure incurred by him for medicines etc.

The Auditor-General considers that these payments should be covered by an Order in Council under the provisions of section 78(3) of the Public Service Act. The Clerk of the Senate considers that section 78(3) does not apply because the payments were not made to the officer. The Auditor-General thinks that the fact that payment was made indirectly on behalf of Messenger C. does not affect the question, and that the payment is virtually made to an officer and is other than for 'salary or prescribed transfer or travelling allowances or expenses'.

Previous opinions which have been given regarding payments under section 78(3) of the Public Service Act have dealt with payments to officers for certain services rendered to the Commonwealth. Reading the section referred to with the context, it would appear that the payments referred to therein are intended to mean payments other than salary etc., for services rendered.

The payment in the case under notice may be regarded as compensation for injuries received. Instead of making payment of compensation in a lump sum to the officer, the Department defrays the expenses incurred in his recovery.

Take an analogous case. An officer of the Commonwealth is travelling on a Commonwealth railway and owing to accident is seriously injured. The Commonwealth railway department decides to pay the officer compensation amounting to, say, £300. Would it be held that such payment must be authorised by the Governor-General under section 78(3)?

It is assumed that if a claim were made under the Commonwealth Workmen's Compensation Act 1912, an Order in Council under the Public Service Act would not be necessary.

It is also assumed for the purposes of this opinion that Messenger C. is an officer of the Public Service.

Section 78 (3) of the Public Service Act provides that:

Payments of money to officers other than for salary or prescribed transfer or travelling allowances or expenses shall be made only under the authority of the Governor-General.

This sub-section must, in my opinion, be read in the light of the whole section. Sub-sections (1) and (2) deal with the payment of salaries. Then sub-section (3) applies to other payments to officers than salaries and prescribed transfer or travelling allowances or expenses.

In my opinion the 'other payments' in question refer to payments in the nature of rewards for services rendered, and do not extend to refunds of medical expenses incurred in connection with accidents arising in the course of an officer's employment. Where an officer does not claim compensation under the Commonwealth Workmen's Compensation Act, such expenses should in my opinion be regarded rather in the nature of expenditure incidental to the work of the Department, and be charged to the appropriate head of expenditure.

I am therefore of opinion that the payments in question do not require the approval of the Governor-General.

[Vol. 13, p. 425]