Cost Apparently £40,000

Eruption Damage

*"PHE Rabaul eruption knocked holes, in the New Guinea Government’s sur plus.

The financial year 1936-37, opened with £40,954 surplus, and should have closed with £61,907. But the outburst on May 28 altered all that. Nominally, the surplus will be shown, and the cost of the erup tion repairs carried on into the 1937-38 period. But, actually, about half the surplus has gone up in the smoke of Mt. Vulcan and Mt. Matupi.

The Treasurer (Mr. H. O. Townsend) told the Legislative Council in Rabaul last month that expenditure on eruption damage paid in the Territory, to August 24, was £13,880; that the Commonwealth Government had paid sums (for stores, hire of ships, etc.,) totalling £12,832; and that probably another £14,000 would be wanted to complete the clearing of Rabaul. That makes £40,000; but there is some hope that the Commonwealth Government will make a grant of £lO,OOO —a proper thing, in the unfortunate cir cumstances.