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(d) Store Building and Workshops. Sketch plans of additional storage and workshop accommodation at Trentham, referred to in last year's report, have been prepared, and an item for the work has been provided in this year's estimates. The buildings required comprise two large storehouses, to be served by an extension of the existing railway siding, and various additions and alterations to the workshops. A substantial economy in staff and administrative expenses will result from the carrying-out of this work. (e) Rifle Ranges. The situation remains the same as reported last year. 9. DEFENCE BUILDINGS: OFFICES, DRILL HALLS, BARRACKS, ETC. (a) Existing Buildings. No improvement in the position, as reported last year, has been effected. Considerable expenditure on maintenance is essential at the earliest possible date, and particularly so at Narrow Neck Camp, Auckland. Practically all drill halls and offices require a thorough overhaul and renovation, both inside and out, to keep them in a serviceable condition and to make them reasonably presentable and attractive from a recruiting point of view. (ft) New Buildings. Buildings required in connection with the strengthening of the defences of the Dominion have been proceeded with during the year. At Fort Dorset the principal buildings have been erected; surfacing, roading, and drainage will be completed this year. A few additional buildings, such as a small hospital and quarters, are still required. At Narrow Neck, Auckland, the buildings required to accommodate anti-aircraft guns, vehicles, and equipment have been completed, and the large barracks to accommodate single personnel of the Royal N.Z. Artillery are now ready for occupation. A small hospital building and roading, also surfacing, have still to be completed. At Burnham Camp a small building to accommodate single civilian personnel of the Ordnance Depot has been erected, but additions are now required to meet an increase in the number of men employed at this station. 11. FINANCE. The net appropriation for defence purposes for the year ended 31st March, 1936, amounted to £549,455, made up as follows: Land forces, £378,837; military aviation, £150,604; civil aviation, £20,014. The net expenditure for the financial year amounted to £552,125, apportioned as follows, the previous year's figures being shown in parentheses: Land forces, £378,181 (£321,686); military aviation, £160,773 (£132,230); civil aviation, £13,171 (£11,316). The overexpenditure on military aviation is accounted for by payments in excess of anticipation being made on account of the construction of buildings at the Royal N.Z. Air Force stations at Hobsonville and Wigram and to the provision made for the purchase of aircraft spares, spirit, and oil being exceeded. On the other hand, the expenditure on civil aviation proved to be less than the sum voted, by £6,843, this being due largely to outstanding accounts on emergency-landing grounds not coming to charge before the end of the financial year, and to the item of £3,200 provided for the purchase of aircraft for loan to the aero clubs not being required, by reason of certain Royal N.Z. Air Force planes being transferred to the clubs, in lieu of new machines being purchased, as was originally intended. The expenditure of £552,125 has enabled steady progress to be maintained with the scheme of strengthening the air and coast defences of the Dominion, particularly as regards the erection of necessary buildings at the various stations for the housing of personnel and equipment, there having been a sum of £211,167 paid out for this purpose, and in settlement of accounts for armament, ammunition, aircraft, and other military material. The balance of the sum of £552,125, amounting to £340,958, has been disbursed in carrying on the ordinary training and maintenance activities of the Department. The outstanding liabilities as at the 31st March, 1936, carried forward were £16,709 14s. Id., and the Department's commitments as at the same date amounted to £201,134. The usual table showing the annual expenditure on the land and air defences of the Dominion over the last nine years will be found in Appendix II of this report. I have the honour to be, Sir, Your obedient servant, W. L. H. Sinclair-Burgess, Major-General, Commanding N.Z. Military Forces.

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