9

H.—l9

. SECTION IV.- MISCELLANEOUS. 1. Finance. The expenditure for 1920-21 was £531,042, or £108,211 less than the amount appropriated by Parliament. This saving has been effected by the temporary abolition of annual training in camp of Territorial Force units, and by the closest attention to economy in the administration of all branches of the Defence Department. The existing scheme of universal training, which had not fully developed in the year before the war (viz., 1912-13), then cost £505,267. It must therefore be realized that, in view of the increased salaries and cost of material, it is now impossible to keep the expenditure on defence within prewar limits unless reduced activities in training are effected, which, of course, should be without prejudice to efficiency. An illustration of the increased cost of material is given in the following table showing the cost, including freight from England, of certain articles of military equipment and munitions in 1914 as compared with the current cost of similar articles :— 1914. 1921. £ s. d. £ s. d. 100 rifles .. .. .. .. .. .. 365 16 0 532 10 0 100 sets web equipment .. .. .. .. .. 157 0 6 222 9 2 100,000 rounds small-arms ammunition (ball) .. .. 574 3 4 981 5 0 100 6 in. shells .. .. .. .. .. .. 432 8 0 599 19 1 18-pr. Q.F. gun, limber, and carriage .. .. .. 1,237 11 3 1,521 5 0 General-service wagon .. .. .. .. . . 78 15 3 146 12 10 Tent, circular (single linen) .. .. .. .. .. 4 2 6 17 17 6 £2,849 16 10 £4,021. 9 7 Increase, 41 per cent. The estimates for the current year provide for a sum of £464,033 for purely military defence expenditure in connection with the upkeep and training of the Permanent and Territorial Forces and cost of training Cadets. In addition to the above, provision is made for the following : Encouragement of rifle shooting, £21,490; aviation, £15,426; non-effective services, £11,999. Thus total estimates for 1921-22 are £512,948, which amount is 10 per cent, less than that authorized for 1920-21. Tho above estimates do not provide for any annual camps of training for Territorial units or for concentrated training of trainees in their eighteenth to nineteenth year, as provided for in the proposals submitted last year to Parliament by the Parliamentary Defence Committee. If approval is given for the holding of camps for the General Training Section this year, provision will require to be made on the supplementary estimates. 2. N.Z. Expeditionary Force War Accounts and Records. Staff and Amalgamation. —Although there is still a large amount of detail work to be done, the work of these branches showed a gradual decrease throughout the year, and thus enabled a corresponding decrease of staff to be gradually effected, and on the Ist July, 1920, the branches were amalgamated under one controlling officer. The combined staffs, which on the Ist April, 1920, numbered 417, have been reduced to 76 as at the 31st May, 1921, showing a reduction of 341 throughout the year. Expenditure. —The total net expenditure from War Expenses Account for the year ended 31st March, 1921, was £3,170,118 9s. 5d., while imprest advances outstanding on the 31st March. 1921, (£383,485 18s. 3d.) bring tho total to £3,553,604 7s. Bd. The principal items of expenditure included in this total were — £ s. d. Pay of troops .. .. .. .. .. .. 231,242 0 0 Retrospective allowances .. .. .. .. .. 242,258 13 0 War gratuities .. .. .. .. .. .. 732,538 0 0 Medical treatment of soldiers (including maintenance of military hospitals) .. .. .. .. .. .. 423,277 0 0 Transport of troops.. .. .. .. .. .. 453,560 0 0 Repatriation .. .. .. .. .. .. 671,802 9 9 The total war expenditure from the commencement of the war to the 31st March, 1921, was £78,674,175 ss. 5d., made up as follows : — General expenditure (including pay and allowances, £30,652,027 £ s. d. 2s. lOd.) .. .. .. .. .. .. 69,921,680 16 11 Relief purposes .. .. .. .. .. .. 268,438 15 8 Repatriation .. .. .. .. .. .. 1,473,527 911 Charges and expenses of raising loans .. .. .. 697,599 4 6 War gratuities (N.Z.E.F.) .. .. .. .. .. 5,591,262 19 1 Allowances to wives of Imperial soldiers domiciled in New Zealand, and difference between New Zealand and Imperial pay and gratuities to New-Zealanders who served in Imperial, Naval, and Air Forces .. .. .. .. 338,180 1 1 Advances outstanding .. .. .. .. .. 383,485 18 3 Grand total.. .. .. .. ..£78,674,175 5 5 A detailed statement of above expenditure is attached (vide Appendix V).

2—H. 19.