H—lla

(iii) Appreciation 35. Opportunity is taken to record appreciation of the excellent service rendered, during a difficult year, by the staffs of the Head Office and district offices of the Department. Members of the staff generally have applied themselves unsparingly to their duties, notwithstanding that long hours and constantly varying problems have been the rule. In particular, thanks are expressed to District Man-power Officers for the contribution they have made to the carrying-out of an emergency task of extreme difficulty. The most helpful co-operation of Industrial Man-power Appeal Committees and of the members of other auxiliary bodies associated with the Department is gratefully trecorded. SECTION IV.—FINANCE AND EXPENDITURE (i) Administration Expenses (£297,277) 36. The administration expenses of the National Service Department are subject to annual appropriation by Parliament in terms of the Public Revenues Act, 1926, and •continued provision was made for this expenditure to be met in the first instance from the Consolidated Fund under vote, " National Service." 37. It will be observed that the net expenditure during the year ended 31st March, 1946, was £297,277, as compared with £348,962 the previous year, a reduction of .£51,685. This decrease, of course, reflects the reduction in the activities of the Department after the cessation of hostilities. 38. With the exception of miscellaneous recoveries and an assessed amount of £70,000 recovered from the new vote, " National Employment Service," for administration incurred in connection with promotion of employment, Public Service hostels, and the Home Aid Service, the net expenditure under vote, " National Service," was finally recovered from War Expenses Account, Subdivision IY, Civil. 39. The amount of £297,277 shown above was the actual net charge to War Expenses Account during the year ended 31st March, 1946, for administration expenses, And against this amount must be credited the sum of £242 received from the disposal of surplus assets. (ii) War Expenses Account (£552,918) 40. Apart from certain expenditure detailed below under vote, " National Employment Service," all other expenditure of the Department not provided for under vote, " National Service," is met direct from War Expenses Account, Subdivision IV, Civil. 41. An overall reduction of £26,436 in expenditure from War Expenses Account was effected during the year ended 31st March, 1946, as compared with the previous year. With the exception of industrial mobilization, against which a considerable sum for capital costs in connection with workers' camps and war workers' hostels and increases in other items were charged, expenditure was reduced under each heading. Expenditure from War Expenses Account is now dealt with in detail, while the first table at the end of this section summarizes the expenditure under all headings. (a) Defaulters' Detention Camps (£91,412) 42. The expenditure under this heading includes the net capital and operating •costs of the camps. Capital expenditure during the year amounted to £3,368, and the balance, £88,044, represents operating costs. When examining costs, however, allowance must be made for the very considerable quantity of work carried out for other •Government Departments by defaulter labour. With a smaller number of defaulters available during the year, the value of the work performed was £35,712, against which -a cash recovery of £16,653 was credited to War Expenses Account. As certain claims had not been met by 31st March, 1946, and as a final valuation of the work done was

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