H.—ls.

It will be observed that the position has improved to a remarkable extent since 1922-23, when the finances of the Department were subjected to a complete overhaul. At that time there was a substantial deficit, which, as the result of a careful financial policy, has been gradually overtaken until the Department is now fully self-supporting. There is every indication, however, that provision will require to be made in the near future for heavy expenditure on a complete survey of the New Zealand coast and this will fully absorb the small surplus which is being realized at present. Westport Harbour. The following statement shows the coal trade, shipping, and financial statistics of Westport Harbour for each year since the Department has had control of the port:—

An examination of this statement discloses that the Harbour was a heavily-losing proposition when the administration of the port was transferred from the late Harbour Board to the Department fourteen years ago. In 1921-22 there was a deficit of over £38,000, which was substantially reduced in the two succeeding years. From 1924-25 to 1930-31 inclusive, there was an average annual surplus of £2,563 16s. lid., but during the past four years the abnormal depression in the coal trade has undermined the finances of the port. At present the revenue is sufficient to meet minimum workingexpenses and interest on loans, but is unable to provide for sinking fund. The bunkering trade has shown a slight improvement, but does not bear comparison with what it was in pre-depression years. The number of vessels which called at Westport for bunker coal during the past ten years is as follows : —

Port dues on ships calling for bunker coal have been reduced to a minimum, with the object of encouraging this trade as far as possible. Greymouth Harbour. A subsidy amounting to £12,000 was paid to the Greymouth Harbour Board during the year in pursuance of the provisions of section 5 of the Greymouth Harbour Board Amendment Act, 1920. Formerly this subsidy was paid out of permanent appropriations under special Acts. The financial position of the Greymouth Harbour Board was closely reviewed towards the end of the year, and instead of paying an annual subsidy the Government has decided to take over the Board's loan liability. This means that the Board will be relieved of interest and sinking fund on its loans and will require to finance its operations out of its ordinary revenue. The new arrangement makes very little difference to the Consolidated Fund and has the distinct advantage of defining and stabilizing the position so far as the Board is concerned.

2

Net Tonnage To of Year. of Shipping j shipped Expenditure. Revenue. Financial Result, entered. '' £ s. d. £ s. d. £ s. d. 1921-22 .. 273,706 480,873 63,950 1 10 25,836 19 3 Deficit 38,113 2 7 1922-23 .. 332,401 573,487 50,738 17 5 38,700 8 1 „ 12,038 9 4 1923-24 .. 275,762 442,070 46,619 111 4-2,285 7 4 „ 4,333 14 7 1924-25 .. 334,827 556,669 44,666 14 0 50,378 11 0 Surplus 5,71117 0 1925-26 .. 386,669 552,949 51,909 4 11 57,539 12 11 „ 5,630 8 0 1926-27 .. 459,670 637,165 52,769 12 6 62,976 13 10 „ 10,207 1 4 1927-28 .. 466,021 623,256 65,828 1 7 65,909 8 1 „ 81 6 6 1928-29 .. 458,712 604,778 68,871 13 0 64,214 5 6 Deficit 4,657 7 6 1929-30 .. 479,623 625,835 64,877 10 5 66,274 17 3 Surplus 1,397 6 10 1930-31 .. 352,228 513,503 53,436 16 9 53,013 2 11 Deficit 423 13 10 1931-32 .. 234,936 336,873 46,803 2 4 34,602 12 9 „ 12,200 9 7 1932-33 .. 223,936 282,163 40,974 8 9 30,516 6 1 „ 10,458 2 8 1933-34 ,. 240,132 280,080 39,783 7 4 30,886 13 9 „ 8,896 13 7 1934-35 .. 253,041 291,449 39,011 8 8 30,773 2 5 „ 8,238 6 3

Year. Number of Vessels. Quantity Coal Tons. 1925-26 . . .. .. 20 1926-27 .. .. .. 44 1927-28 .. .. .. 51 54,993 1928-29 .. .. .. 54 54,083 1929-30 .. .. .. 57 61,546 1930-31 .. .. .. 24 25,969 1931-32 .. .. .. j 10 7,637 1932-33 .. .. .. 7 6,872 1933-34 .. .. .. | 14 12,703 1934-35 .. .. .. | 21 16,376