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The selection of the returned servicemen for tenancies has been placed, under the control of the Rehabilitation Board, and the allocations are being made by the local Rehabilitation Committee in the towns affected. On the whole, the collection of rent for these houses has presented 110 great difficulty, and it is pleasing to record that in addition to meeting their rentals, the tenants have displayed a keen interest in the upkeep of the houses and sections. Since the first houses were tenanted in 1937 the total rents for all new properties in the scheme up to the 31st March, 1944, have amounted to £3,845,340, and of this sum, only £2,014 has been written off. Arrears of rent on new housing units under administration at the close of the year amounted to £4,567. It will be seen from the annual accounts that there are a number of old rental properties included in the assets of the Housing Account. These represent 1,002 tenancies, and the capital value of the assets at the end of the year was £601,863. In addition to the rental houses, the following activities are controlled by the Corporation under the Housing Account: — (a) Amounts owing under agreements for sale and purchase of residential property. (b) Advances to employers under Part 111 of the Housing Act, 1919. (c) Advances to local authorities under Part V of the Housing Act, 1919 ; loans to local authorities under the Rural Housing Act, 1939. The purchase of land for subdivision and servicing for housing purposes is now the responsibility of the Ministry of Works, but where land so acquired is not immediately required the Corporation is usually requested to administer the property on an agency basis, and collect any revenue that may be derived therefrom. Balance-sheet and Accounts—The tabulated revenue accounts and the balance-sheet submitted herewith are an indication of the value of assets under administration and the results of the year's operations. There has been little activity under any of the sections with the exception of that relating to the new rental houses. Each section showed a profit on the year's trading after making provision for all proper charges. The Revenue Account for rented properties (old) has been charged with depreciation at a rate estimated to be sufficient to write off the improvements during the useful life of these assets, and actual maintenance costs incurred have been fairly heavy owing to the age of some of the houses. The Revenue Account for new rental houses discloses an excess of revenue over expenditure amounting to £8,873, as compared with £6,256 for 1942-43. In the expenditure there is a charge of £41,173 for war damage insurance, which item will be considerably reduced in subsequent years following the reduction in premium from ss. per cent, to Is. per cent., which became effective from Ist March, 1944. Depreciation, maintenance, and vacancies have been assessed on a basis considered to be sufficient to meet the average accruing charges. The Balance-sheet reflects the partial change of control arising out of the transfer to the Works Department of such assets as freehold land, dwellings in course of construction, factories, plant, &c., which have previously been included in the assets of the Housing Account. The book value of new houses, after allowing for depreciation, is shown at £19,969,923. In accordance with section 35 of the Housing Act, 1919, the following statistical information is submitted:— £ (1) Payments received during the year .. .. .. 1,176,801 (2) Amount of arrears outstanding at 31st March, 1944 (including instalments due 011 agreements for sale and purchase and rentals on tenancies old and new) .. .. .. 26,783 Previous reports have included a statement of the cost of land purchased for housing and the amount expended on erection of dwellings, but this information is now supplied by the Ministry of Works, which is now responsible for this phase of the work. A. D. Park, Chairman of Directors. T. N. Smallwood, Deputy Chairman of Directors. B. C. Ashwin D. Barnes J- Directors. R. G. MacmorranJ

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