5

H.—s

33. The results of the examinations passed by the ratings concerned were very gratifying both to the Naval Board and the men themselves ; each of the seamen ratings obtained either a gunnery or torpedo rating, and those of the other branches qualified for advancement to higher substantive rating. 34. A second batch of thirty-five ratings proceeded to England in H.M.S. " Chatham " at the end of May, 1924, and commenced courses about the end of August. The results of the training of this party are not yet available, but, by the interim reports received, satisfactory progress is being made and there is every reason to believe that their performances will equal those of the earlier party. 35. A further number of ratings is at present undergoing preliminary training locally, with a view to being sent Home about the end of 1925. XII. EXPENDITUBE DUBINGt LAST FINANCIAL YEAB. 36. The sums voted for naval defence for 1924-25, and the amounts expended, were as follows : —

XIII. Estimates fob 1925-26. 37. Estimates for the current financial year have been framed with the object of giving effect to the views expressed by the Admiralty as to the lines which, in their opinion, Dominion naval policy should follow. 38. These views are recapitulated below under the headings given by the Admiralty, in the order of their importance, with a statement of the proposals for the current financial year. (i.) Maintenance of Nucleus of Seagoing Squadron capable of Expansion by Cruisers and Oceangoing Submarines. —The New Zealand Government have accepted the responsibility for the maintenance of a second cruiser, and (as stated in paragraph 10) H.M.S. " Diomede " is expected to reach the station about the end of 1925. This additional ship will be able to undertake cruising duties in 1926, and it will thus be possible for the various ports on the station to be visited more frequently. (ii.) Provision of Oil Reserves in the Dominion. —The state of the two oil-tanks at present authorized is given in paragraph 14, the first tank being completed. It is hoped that before the end of the present financial year the second tank and pumping-apparatus will be in place, and that one tank will be filled, thus inaugurating the naval reserve of oil fuel. (iii.) Provision of Bases, Docks, Depots, and Reserves of Stores and Fuel for War-vessels. —The development of the Naval Base at Auckland is being carried out gradually ; provision is made in the estimates for the current financial year for additional berthing-accommodation and for a small reserve of stores. As the sea-going ships of the New Zealand Division of the Royal Navy will both be oilburning cruisers, arrangements have been made by which the stocks of coal hitherto maintained in the islands will be taken over by the Imperial Admiralty for the use of the two sloops " Laburnum " and " Veronica," which are coal-burning vessels. (iv.) Provision of Local Protection of Trade and Storage of Guns for Merchant Ships and their Escorts, and providing Trained Personnel for them. —It is proposed to erect a small storehouse at

Item. Voted. Expended. Remarks. £ £ Full pay and wages, extra 133,500 131,612 pay, &c. Administration .. 9,400 204 Change in Treasury method of dealing with remittances. Victualling, clothing, and 28,475 34,858 Claims not expected to materialize until mess-traps 1925-26 received and paid. Medical services .. 1,650 1,708 Repairs, docking, &c. .. 11,100 6,629 Repairs less extensive than anticipated. Fuel and lighting . . 61,170 57,362 Claim for fuel used by " Dunedin " on passage out not yet received. Stores .. .. 41,000 17,485 Several large claims not yet received. Works .. .. 26,910 14,050 Second oil-tank not completed, material not having arrived. Reserves .. .. 4,600 1,362 Delay in inauguration of Reserves. Effective services .. 13,337 15,891 Freightage on reserve ammunition and stores from previous year dealt with in current year. Non-effective services .. 26,370 26,241 Contingencies and claims 2,000 2,671 Prize-money, which was not allowed for, paid from Admiralty on behalf of Admiralty. Gross totals .. 359,512 310,073 Credits .. .. 25,677 26,717 Net totals.. .. £333,835 £283,356