D.— No. 7a.

DEFENCE DEPARTMENT. The Head Office Staff of this Department consists of — £ s. d. An Under Secretary ... ... ... ... 600 0 0 2 Clerks, each £300 ... ... ... ... 600 0 0 1 Clerk, at ... ... ... ... ... 250 0 0 1 Clerk, at ... ... ... ... ... 200 0 0 2 Clerks, each £175 ... ... ... ... 350 0 0 Messenger ... ... ... ... ... 100 0 0 £2,100 0 0 Head Office. —The Under Secretary has the general direction of business under the control of the Honourable the Defence Minister. Clerk, £300 —Has charge of correspondence and of accounts, copies letters from drafts, keeps memorandums of all accounts approved and forwarded for payment, and observes that each expenditure has been authorized. Keeps a book of copies of Minutes referred, —10 pages entered for this year. This officer has since our visit been temporarily transferred to the Treasury. Clerk, £300 —Employed on correspondence in connection with appointments, records, resignations; keeps Army List and Monthly Lists of Staff; makes out Gazette notices ; keeps Pension List Book ; makes out Returns. Clerk, £200 —Record Clerk, registers and indexes letters received (number received from Ist January to 31st May, 1566, was 2213) ; has charge of them. Clerk, £250 —Employed on correspondence and Estimates. Enters approved estimates, and prepares statement for Treasury of amount required each month. Returns approved estimates to local officers and files a duplicate. Clerk, £175 —Copies letters into books (1246 letters during the first five months of 1866). He is sometimes assisted by the other ('lerks. Clerk, £175 —In charge of Returns and assists generally. Prepares and keeps record of Commissions. Receives and checks Regimental Returns. Messenger, £100 —Ordinary duties. The business of this Department up to the present time has been considerable, but it will be very materially reduced as soon as the Military Settlers are put in possession of their land; and, should the suggestion made in our first Report, for raising an armed Constabulary as a permanent Colonial Force be carried into effect, We believe it will be unnecessary to maintain the Defence Office as at present constituted. The Department has the management of all the Colonial Defence Forces, provides clothing for most of them, and partially supplies the men on actual service with rations and necessaries. The Returns supplied us oil the 14th June, 1866, show on actual Defence Service 103 officers, and 1919 men —in all, 2022 rank and file, at an annual cost of £135,204 7s. 3Jd. for pay-, in addition to a permanent Staff distributed over the Colony in connection with the Volunteer and Militia Forces, consisting of — £ s. d. 1 Lieutenant-Colonel ... ... ... ... 547 10 0 11 Adjutants ... ... ... ... ... 3,11115 0 1 Armourer Sergeant ... ... ... ... 170 0 0 10 Sergeants-Major ... ... ... ... ... 1,210 5 0 1 Storekeeper ' ... ... ... ... ... 250 0 0 2 Clerks ... ... ... ... ... 320 0 0 26 Sergeants, Buglers, &c. ... ... ... ... 2,29115 0 £7,901 5 0 The total number of A'olunteers returned is 2817. The Militia is not now under training. A Steam flotilla, of four coasting vessels and four river steamers on the AVaikato, with three barges and sundry boats, is also under the control of this Department. The estimated value of these vessels, excepting the steamer " St. Kilda," which does not belong to the Department, is £21,150. The expenditure at the present rate for this branch of the service is about £20,000 per annum, less about £5000 contributed by- the Imperial Government for the hire of one of the steamers. Stores and Clothing. —Large supplies of arms, clothing, tents, saddlery, tools, and other equipments have been imported from England, and purchased in the Colony at great cost. The mode of accounting for these supplies has been regulated, but up to the present time no well defined system appears -to have been adopted for the purchase, distribution, and custody of stores. There are at present three separate Storekeepers, besides Quartermasters. AYe strongly recommend that this duty should be confided to one competent Storekeeper, who should be entirely independent of the control of any officer of the forces whom ho shall have to supply. Tho accounts received from the various corps could lie examined against those of the Storekeeper, and each would then act as a check against the other. The Storekeeper should furnish security for the faithful discharge of his duty. The system of contracting by public tender for all supplies, according to samples, and on specified conditions, should be adopted whenever practicable, and extended as opportunity offered to every place where any force might be stationed, so as to economize cost of transport. Stock of stores should be taken every quarter by a local Board of Officers, who should give a certificate of their examination, and report deficiencies should any be found. Every officer in charge of stores should keep a Stock Book showing receipts and deliveries. These books should be regularly posted bo as to be capable of being compared with the stock on hand at any time. Such an exact 6

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SERVICE COMMISSIONERS.