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5, TERRITORIAL FORCE ASSOCIATIONS. During the year the Territorial Force Associations have continued to render invaluable service by encouraging recruiting and by providing recreational and club-room facilities for the Territorial Force. I again desire to thank all those public-spirited citizens who have gratuitously performed such excellent work for the welfare of the Forces. 6. NEW ZEALAND ARMY RIFLE ASSOCIATION. It is regretted that it is again financially impossible to hold the annual meeting of the New Zealand Army Rifle Association. Its reintroduction would do much to promote efficiency and reward merit in the Territorial Force. 7. RIFLE CLUBS. The membership of rifle clubs has decreased by 158 during the year, but there are three additional clubs. The free issue of ammunition to rifle clubs has been continued on the same scale as last year. The National Rifle Association held its annual meeting at Trentham in March. 8. DEFENCE WORKS, MOBLIZATION DEPOTS, RIFLE RANGES, AND OFFICE PREMISES. Generally, these have been maintained in fair condition. A further reference to this question will be found under the heading of Finance. Rifle ranges have been maintained in good order. 9. FINANCE. Consequent upon the Government's decision to strengthen the defences of the Dominion, it became necessary to make provision for the purchase of certain additional land, and for the erection of further buildings to house equipment and staff. The expenditure thus involved, together with a delayed payment made to the Colonial Ammunition Co. for small-arms ammunition, resulted in the vote for the year having to be fixed at £283,703, an increase of £53,393 on the sum voted the previous year. Due to continuation of the policy of strict economy and to progress with the building programme referred to falling short of what it was expected to be by the end of the financial year, the expenditure of the Department was confined to the sum of £264,723, being £18,980 less than the amount appropriated. , Reference was made in my report of the 31st July, 1932, to the effect the curtailment of essential expenditure was having on military equipment, buildings, and other assets of the Department. For nearly four years now, a policy of the strictest economy has been pursued in the administration of the Department, and the maintenance and upkeep of Depot buildings and valuable military material in the country have had to be reduced to a minimum. Some increase in the normal annual expenditure of the Department, to enable a commencement to be made with essential repair work must be faced shortly if the comparatively heavier cost of rebuilding and replacing in many instances is to be avoided in the near future. The usual table showing the annual expenditure on the Land and Air Defences of the Dominion over the last six years will be found in Appendix II of this report. I have the honour to be, Sir, Your obedient servant, W. L. H. Sinclaib-Buegess, Major-General. Commanding N.Z. Military Forces.

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