§ The Programme of New Construction, to be undertaken in the coming financial year, has been most thoroughly considered and discussed by the Board. In framing it, full consideration has been bestowed upon the requirements of the Fleet, in relation to reliefs, the various special services required of H.M. ships on foreign stations, and the "waste" of the Navy resulting from ships becoming obsolete through age or the progress of invention. A careful examination was also made into the composition of the squadrons abroad, and a standard of strength was fixed both for reserves at home as well as for stations abroad, up to which the Fleet should always be maintained. The condition and character of the ships already in progress, as well as their state of advancement, have also been kept in view. Moreover, a careful examination has also been made of the Shipbuilding Policy now being pursued by Foreign Navies, the progress made on ships yet incomplete belonging to these Navies and the liabilities yet remaining to be discharged.
§ In order that the necessary time might be given to the consideration of these complex conditions, the building programme was taken in hand early in the autumn of last year. As the Estimates of expenditure for the forthcoming year are always prepared in November, it was believed that if the number and size of the ships to be built could be definitely settled before the Votes for the material and labour to be required in the Dockyard were considered, considerable economy would result from the store and labour estimate being based on confirmed data, and not upon assumption and contingency. By placing before the Dockyard, officials and various purchasing departments of the Admiralty the exact amount of work and of stores they were expected to provide, the Estimates have been prepared with much greater accuracy and closeness than was possible when the conditions were reversed.