H.—37.

Up to the Ist April, 1937, when the Air Department was formed, £21,178 10s. had been granted by way of subsidy, and in addition thirty aircraft had been issued on loan to the approved clubs. Details of the subsidy payments and aircraft loans during this period are as follows : —

On the formation of the Air Department, this method of subsidy was superseded by a scheme whereby certain elementary training for the Air Force was undertaken by approved clubs. Four further aircraft for which provision had already been made, however, were purchased and issued on loan to the Hawke's -Bay and East Coast, Western Federated, Middle Districts, and West Coast United Aero Clubs. This brought the total number of aircraft loaned to thirty-four. On the 31st March, 1939, the following clubs were offering training facilities: — Auckland Aero Club. Waikato Aero Club"! a A ~ , . ni , t> , \ i ? feouth. Auckland Aero Olul-). Kotorua Aero Club J New Plymouth A.ro klub\,j, er f orm ing the Western Federated Flying Club. Wanganui Aero Club J Middle Districts Aero Club. Wellington Aero Club. Wairarapa and Ruahine Aero Club. Hawke's Bay and East Coast Aero Club. Marlborough Aero Club. Canterbury Aero Club. Otago Aero Club. Southland Aero Club, West Coast United Aero Club. The total membership of the clubs at the 31st March, 1939, was 3,690, comprising 2,742 associate and 948 flying members, of whom 554 were in possession of valid "A"or " B " Pilots' Licences. The corresponding figures for the year ended the 31st March, 1938, were : Membership, 3,590 (2,675 associate and 915 flying), the number of qualified pilots being the same as in the current year. Although the number of licences has not altered, there has actually been an increase in the number of " A" licences held by club members, but a decrease in the number of " B " pilots, some of whom have entered flying professionally. In training and club flying, 19,656 hours were flown, of which 6,213 were dual instruction, as compared with 17,726 and 5,748 hours respectively for 1937-38. Commercial operations accounted for an additional 1,152 hours and the carriage of 7,263 passengers, as against 1,569 hours and 8,303 passengers for the preceding year. Further comparative figures dealing with this aspect of the clubs' operations are given in Section VII. Am Force and Civil Reserve Training. In 1937 a Civil Reserve scheme was introduced, and agreements were entered into with the approved clubs for the training of a total of ninety-nine pilots. In addition, the Auckland, Wellington, Canterbury, and Otago Clubs were asked to provide initial training for twenty-four Air Force pilots. The agreements provided for payment to clubs for this flying at the rate of £3 10s. per flying-hour, with a further subsidy of £400 to those clubs which completed their contracts in respect of the Civil Reservists. In the present year a similar scheme operated which included the Waikato Aero Club, thus making a total of twelve clubs participating. Altogether, forty-four Air Force candidates were trained and one hundred Civil Reservists, thirteen of whom were transferred to short-service commissions before fully completing their courses. The cost to the Department in the two years of operation of this scheme is shown in the following table :—

12

Subsidy. xr Aircraft Year. , , Voted. Expended. loaned. £ s. d. £ s. d. 1928-29 .. .. .. .. 6 1929-30 .. .. 1,500 0 0 1,625 0 0 3 1930-31 .. .. 2,500 0 0 2,175 0 0 8 1931-32 .. .. 1,800 0 0 1,795 0 0 1932-33 .. .. 2,250 0 0 2,070 0 0 3 1933-34 .. .. 2,250 0 0 1,755 0 0 1934-35 .. .. 4,500 0 0 2,282 0 0 6 1935-36 .. .. 4,500 0 0 4,480 0 0 1936-37 .. .. 5,000 0 0 4,996 10 0 4 Totals 24,300 0 0 21,178 10 0 30

1937-38. 1938-39. Voted. Expended. Voted. Expended. _______________ £ £ £ £ Civil Reserve training and subsidy ., 18 ,400 14,955 21,550 21,826 Air Force trainees .. .. 4,200 4,170 8,400 7,385