Other issues facing the RAN during Dowling's term as CNS were its relegation—since the beginning of the 1950s—to third place behind the other armed forces in terms of Federal budget allocations, its replacement by the RAAF as the country's first line of defence, and a shortage of manpower. Dowling himself considered "separation from families, lack of houses, over employment, high wages and overtime payment in civvie street" as the causes for the Navy's inability to attract and retain personnel; the Allison Report in 1958 led to improvements to service conditions, which helped reduce wastage. The RANC had moved to Flinders Naval Depot in 1930, and Dowling was pleased to be able to oversee its return to Jervis Bay in 1958, the year before he relocated the office of the CNS to Canberra.