compared with those granted-continued.

CAUSES OF VARIATION BETWEEN EXPENDITURE AND GRANT.

A.-Compensation. Surplus, 36,1491. 1s. 10d.-Several heavy claims for accidents, which occurred in the previous year, were settled at a much lower figure than anticipated. The dry summer tended to keep mechanical transport accidents below normal.

B.-Exchange. Deficit, 3,6811. 4s.-Contributory factors were the fluctuations in the value of the rupee and the fall in value of the German mark.

C.-Medals. Surplus, 2,9021. 6s.-Reduction in charges by the Ordnance Factories (1,5007.) and delay in delivery (1,3007.).

D.-Telegrams, &c. Deficit, 1,5031. 13s. 5d.-Requirements in respect of foreign cablegrams were greater than anticipated.

E.-Advertisements. Surplus, 2,4431. 2s. 6d.-Requirements were less than anticipated. A lower estimate was taken in the following year.

F.-Miscellaneous. Surplus, 19,3641. 2s. 7d.-A subhead made up of many items, expenditure on which, in the main, proved less than anticipated.

NOTE. This subhead includes a payment of 1207. 12s. 6d. in settlement of a claim in connexion with the hire of typewriters, sanction for which has been withheld by the Treasury. See Correspondence pages 93 and 94. Letters Nos. 5 and 6.

G.-Civil Medical Services, &c. Surplus, 3421. 8s. 5d.-Minor variation.

H.-Appropriations in Aid. Surplus, 11,513l. 8s. 10d.—Includes 6,4121. 5s. from the Middle East Department in respect of services in Iraq and Palestine, 3,0361. from the Royal Mint for the sale of surplus bullion issued for medals, and 8771. from the sale of official photographs.

compared with those granted, etc.-continued.

CAUSES OF VARIATION BETWEEN EXPENDITURE AND GRANT.

A.-Rewards. Surplus, 4881.-Provision made for officer recipients of the Victoria Cross and for gratuities to airmen holders of the D.C.M., etc., promoted to commissioned rank, was not called upon. B.-Half-Pay. Surplus, 2,8871. 12s. 3d.-The proportion of officers of high rank, and of those on the higher scale (Scale A) of half-pay, was over-estimated.

E.—Airmen's Pensions. Surplus, 4,310l. 11s. 6d. Charges were borne by the Ministry of Pensions up to a later date than expected. There was a decline in the rate of wastage, and rank and service of men invalided were, on the average, less than the estimate.

F.-Widow's Pensions, etc. Surplus, 14,8441. 11s. 10d.-Charges were borne by the Ministry of Pensions up to a later date than expected, and the percentage of casualties was lower than the estimate.

G.-Civil Pensions. Surplus, 3421. -s. 9d.-Anticipated retirements did not mature.

H.-Civil Gratuities. Deficit, 2,572. 19s. 10d.-No provision had been made in respect of two senior officials who retired on grounds of ill-health.

J.-Injury Grants. Deficit, 4451. 17s. 9d.-Minor variation.

K.-Commutations. Surplus, 1,180l. 11s.-Fewer officers commuted their retired pay during the latter part of the year.

(8281)

B2

compared with those granted, etc.-continued.

CAUSES OF VARIATION BETWEEN EXPENDITURE AND GRANT.

A.-Salaries, etc. Surplus, 110,1321. 13s. 3d.-The estimate for this vote as a whole was framed on expected developments that did not materialize. It was anticipated that both as regards services run and the carriage of passengers, goods, and mails, civil aviation would expand much more rapidly than proved, in fact, to be the case. A reduction in numbers also resulted from the abandonment of the Airship programme.

B.-Stores and Transport. Surplus, 46,6801. 1s.-See above. Provision was made for the upkeep, etc., of five aerodromes whereas only two were, in fact, required.

C.-Technical Equipment. Surplus, 15,485l. -s. 10d.-Due to cessation of airship work and tardy development of civil aviation generally (54,5007.) off-set by increased expenditure on the purchase of machines for the Subsidy Scheme (39,0007.). (See Correspondence, pages 94 and 95, letters Nos. 7 and 8.)

D.-Works and Buildings. Surplus, 263,418ĺ. 2s. 9d.-Certain works were abandoned as a result of the decision on airship policy, and the works programme generally was curtailed to effect savings For details of New Works-Part I, see paper No. 6, pages 50-53, and of Purchase of Lands, paper No. 7, page 57.

E. Miscellaneous. Surplus, 5,118l. 15s. 5d.-Expenditure of 75,6251. was incurred with Treasury sanction, on the payment of subsidies. (See Correspondence, pages 94 and 95, letters Nos. 7 and 8.) F.-Non-Effective Services. Surplus, 7091. 10s. 3d.-A provisional estimate. For total noneffective payments, see Paper No. 11, page 66.

G.-Meteorological Services. Surplus, 32,0961. 4s. 1d.—Due to reduced numbers being employed and other administrative economies.

NOTES. This subhead includes 1301. for the erection of a hut in the private grounds of a gentleman for use in connexion with work undertaken, in an honorary capacity, for the Meteorological Office. (Treasury, S.10041.)

Furniture and fittings to the value of 217. 5s. were transferred by the Office of Works to a meteorological station without charge.