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Auckland in which shall be stored guns required for local defence vessels and for the defensive armament of merchant ships. Arrangements have been made for the supply of the guns and mountings. The new Reserve of Officers for the New Zealand Division is in existence, the candidates for entry being of a very satisfactory type. The entry of ratings in the Reserves has been slow, but it is hoped that the newly inaugurated Class D will encourage suitable men to join and perform naval training to make them efficient for naval service in case of emergency. (v.) Provision of Mobile Defence and Mine-sweeping Organization. — It is proposed during the current financial year to purchase a trawler for instructional purposes, this vessel being used for training officers and men in gunnery and mine-sweeping. XIV. Summary of Estimates, 1925—26. 39. The estimates for the Naval Defence vote for 1925-26 amount to approximately £110,000 in excess of the vote for 1924-25, the increase being principally due to the projected arrival of H.M.S. " Diomede " on the station. 40. The following table and notes show the difference between the amounts voted in 1924-25 and the estimated expenditure for 1925-26 : —

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| Amount ' Item. I voted, , Remarks. ! ivto-to. 1924-25. £ £ Full pay, wages, allowances, extra pay, &c. .. 194.800 133,500 Due to addition of H.M.S. " Diomede." Administration, Admiralty, on account of pay- 400 9,400 Bulk of this item now dealt with by Treasury in ment of allotments, remittances paid in a deposit account. England, sale of British postal orders, British stamps, &c. Victualling, clothing, implements, and mess 45,000 28,475 Due to addition of H.M.S. " Diomede." traps Medical services .. .. .. .. 2,425 1,650 Due to addition of H.M.S. " Diomede." Repairs, alterations, docking, &c. .. .. 9,000 11,100 Repairs estimated to be less extensive than anticipated 1924-25. Fuel and lighting (including freight of coal) .. 73,100 61,170 Due to addition of H.M.S. " Diomede." Stores .. .. .. .. .. 54,500 41,000 Due to addition of H.M.S. " Diomede." Works .. .. .. .. .. 19,950 26,910 Oil-tanks partially completed and only £10,000 included in current year's estimates. Reserves .. .. .. .. 3,350 4,600 Several non-recurring items included in previous year's estimates. Miscellaneous effective services .. .. 31,327 13,337 Passages of officers and men will be higher than last year. £8,500 placed on estimates for purchase of a trawler. Non-effective services .. .. .. 30,040 26,370 Due to addition of H.M.S. " Diomede." Contingencies, including unforseen expenditure 1,000 2,000 Payment of naval prize-money practically comincidental to other items of vote (part pie ted during last financial year. recoverable) Gross totals .. .. .. 465,552 359,512 Credits .. .. .. .. 21,337 25,677 Smaller credits anticipated on account of coal supplied to Admiralty. Net totals .. .. .. £444,215 £333,835 Alister Beal, Commodore Commanding the New Zealand Division.