8.—6.

XXVI

it has been possible to carry out the docking and repairs of all ships on this station by the resources of the repairing base and the naval personnel comprising the crew of the ships. This has effected a very considerable saving, as the only charges incurred are for material required and actual expenses incurred by the Auckland Harbour Board whilst the ship is in dock. An item of £1,500 has been placed on the estimates for the building of a shed on the' property of the Auckland Harbour Board art Calliope Dock for the housing of Naval Ordnance and other stores. With this exception no new item appears on the current estimates, which have been drawn up with a view to providing for the maintenance and upkeep of "Chatham" and "Philomel," for the payment, victualling, &c, of the personnel, and for administrative charges on an economical basis. Certain items show an unavoidable increase, due, as regards pay, &c, of personnel, to the fact that a larger number of men will be borne throughout the current financial year than were borne throughout last year, and to the increase in rates of pay on advancement, &c, particularly of new-entry recruits. The increase in the stores item is occasioned by the necessity of replacing practice ammunition expended last year. The time has arrived when the contributions of the Dominions, whatever form they may take, should be placed on a more satisfactory and businesslike basis. If it was certain that contributions would be forthcoming from Germany on account of the enormous expenditure incurred by British countries during the war, I would suggest that the cost of new warships should be a first charge on such payments; but, in any case, the Dominions cannot allow such a very large proportion of the total cost of the naval defence of the Empire to be carried by the taxpayers of the United Kingdom : to do so would be grossly unfair and unpatriotic. The countries of the Empire should contribute to the defence of the Empire, naval defence particularly, in proportion to their financial ability. The cost of the " Chatham," with the training-ship, will be approximately £300,000 per annum. This sum counts as a contribution. The payments we are now making on account of H.M.S. " New Zealand " amount to about £100,000 per annum, and if our finances will permit in the next financial year, we should make our contribution for naval defence, including the items I have mentioned, up to £500,000 per annum. This may seem small, but it will, if agreed to, be a move in the right direction and an improvement on the present position, and it can be improved upon as time goes on and as our financial conditions permit. For the present financial year maintenance charges are estimated at £256,656 against an expenditure last year of £303,517. A reduction amounting to £46,861 has therefore been effected. LABOUR DEPARTMENT. The departmental functions have been satisfactorily carried out in the past year, and with the return to normal staff conditions, duties which had to some extent fallen into arrears have been resumed, resulting in better supervision and increased efficiency. The Weights and Measures Office, formerly a part of the Internal Affairs Department, has been incorporated in this Department, whose staff, it is considered, are well equipped to ensure an economic administration of this service. The expenditure in the past year amounted to £35,762. Under the Housing Act the number of dwellings provided during the year was 297 ; the expenditure being £228,544. The future operations of the Government in connection with the building of homes for workers should be in the direction of granting financial assistance to enable them, to build for themselves rather than in building for subsequent disposal on application ; and it is proposed that this be undertaken by the State Advances Office.