H.—ls

The following statement setting out the financial result of each of the past seven 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 position now is that the Dpartment requires at least an additional £12,000 annually in order to place it on a self-supporting basis. This loss is made up somewhat as follows : Survey of ships, £5,500 ; inspection of machinery, £5,500 ; fisheries, £1,000. Ross Sea Dependency. The royalties on whale-oil procured in the Ross Sea realized a substantial increase during 1927-28. The following statement shows the revenue received each year since the Dependency has been under the Department's administration : 1923-24, £200; 1924-25, £200; 1925-26, £1,720 12s. 6d. ; 1926-27, £2,921 ss. ; 1927-28, £7,176 15s. For the last whaling season it is anticipated that the royalties, &c., will amount to approximately £13,000. Foreshore Revenue. The revenue from foreshores for the year under review amounted to £6,212 2s. 3d., as compared with £5,988 17s. 4d. for the previous year. Harbours. The revenue from port dues in respect of various small harbours under the administration, of the Department showed an appreciable increase this year, amounting to £1,801 18s. 10d., as against £920 17s. Id. last year. The increase was due principally to the raising of the port charge at Picton and to the increased wharfage collected at Karamea. Formerly Picton Harbour was being run at a loss, and, in order to place it on a self-supporting basis, the port charge was increased to a more equitable rate. The amended by-law came into operation on the Ist May, 1927, with the result that, for the first time for a considerable number of years, the revenue from this harbour in 1927-28 exceeded the expenditure. Karamea Harbour also showed a much improved financial position this year, a result which, I am glad to say, was brought about by incereased trade and not by increased port dues. The export of timber was 1,314,080 superficial feet in 1927-28, as compared with 288,988 superficial feet in 1925. The wharfage collected at this port during the past three years is as follows : 1925-26, £269 4s. lid. ; 1926-27. £543 18s. 7d. ; 1927-28, £814 13s. id. Both Hokianga and Kaipara Harbours are being run at a loss, and, although the shipping at these two ports at present is not sufficient to make them fully self-supporting, the loss could be reduced to some extent by increasing the scales. of port dues, which scales have been in operation since before 1900. Westport Harbour. The following are the receipts and payments in respect of Westport Harbour for the past seven years : — Year. Receipts. Payments. 1921-22 .. .. .. .. 31,412 75,642 1922-23 .. .. .. .. 44,020 50,303 1923-24 .. .. .. ..44,126 44,588 1924-25 .. .. .. ..49,566 40,949 1925-26 .. .. .. .. 56,920 49,876 1926-27 .. .. .. .. 63,181 46,907 1927-28 .. .. .. .. 65,697 69,108 The receipts have increased from £31,412 in 1921-22 to £65,697 in 1927-28, and the payments have decreased from £75,642 in 1921-22 to £69,108 in 1927-28, which means that there has been a net improvement of £40,639 in the seven years the Department has had control of the port. In this connection it must be borne in mind that during 1927-28 the sum of £13,453 was expended on protective works, with the object of making the harbours afer for shipping. With regard to the Income and Expenditure Account, the surplus for the year after the payment of interest and sinking-fund amounted to £81 6s. 6d. The reason for the marked decrease is the special expenditure on protective works referred to above.

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-y- 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 1927-28 .. .. .. ., 5,941 6 0 „ 12,178 12 0