H.—ls

The following statement setting out the financial result of each of the past six years, both before and after the payment of interest on capital, gives an indication of the Department's progress towards the equalization of expenditure and revenue

The 1925-26 result was improved upon to the extent of approximately £5,000 during 1926-27, but the Department has still to find at least another £12,000 annually before it will be self-supporting. This loss is made up somewhat as follows : Survey of ships, £5,500 : inspection of machinery, £5,500 ; fisheries, £1,000. Survey of Ships. The actual deficiency on this branch for the year was £5,818 7s. 5d., made up as follows : — £ s. d. Engineer surveyors' salaries .. .. .. .. .. 5,046 19 8 Deck surveyors' salaries .. .. .. .. .. 4,707 5 9 Travelling-expenses .. .. .. .. .. .. 635 9 8 Miscellaneous expenses .. .. .. .. .. 200 0 0 Head Office administration .. .. .. .. .. 600 0 0 Total expenditure .. .. .. .. .. 1.1,189 15 ] Total revenue .. .. .. .. .. 5,371 7 8 Deficiency for the year .. .. .. .. £5,818 7 5 The survey fees, with one or two exceptions, are up to the maximum allowed by law, but in many cases these fees are insufficient to compensate the Department for the services involved, and, indeed, are noticeably below what is charged in other countries. Inspection of Machinery. The revenue, amounting to £20,087 12s. 3d. from this branch for 1926-27 showed an appreciable increase on the previous year's figure—viz., £18,662 13s. lOd. The loss on the branch for the year was £5,601 Is. sd. made up as follows : — £ s. d. Salaries 13,919 15 11 Travelling-expenses .. .. .. .. .. .. 5,021 18 3 General expenses .. .. .. .. .. .. 3,346 19 6 Head Office administration .. .. .. .. .. 3,000 0 0 Interest, sinking fund, and depreciation .. .. .. 300 0 0 Total expenditure .. .. .. .. .. 25,688 13 8 Total revenue .. .. .. .. .. 20,087 12 3 Deficiency for the year .. .. .. .. £5,601 1 5 This is the best year experienced in connection with this branch since the commercial balance-sheet system was introduced.

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„ i Before paying Interest . After paying Interest ear ' on Capital. on Capital. £ s. d. £ s. d. 1921-22 .. .. .. Deficiency 74,146 4 2 Deficiency 95,153 14 11 1922-23 .. .. .. „ 53,456 11 3 „ ' 69,172 18 6 1923-24 .. .. .. „ 9,759 8 1 „ 27,231 4 9 1924-25 .. .. .. „ 2,144 4 11 „ 19,882 0 6 1925-26 .. .. .. Surplus 517 2 2 „ 17,294- 8 10 1926-27 .. .. .. „ 5,881 5 2 „ 12,124 0 10