DEPARTMENT OF INDUSTRIES AND COMMERCE (SEVENTEENTH ANNUAL REPORT OF THE).

Appendix to the Journals of the House of Representatives, 1934 Session I, H-44

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1934. NEW ZEALAND.

DEPARTMENT OF INDUSTRIES AND COMMERCE (SEVENTEENTH ANNUAL REPORT OF THE).

Presented to both Houses of the General Assembly by Command of His Excellency.

Your Excellency,— Wellington, 18th August, 1934. I have the honour to submit for your Excellency's information the report of the Department of Industries and Commerce for the past year. I have, &c., R. Masters, Minister of Industries and Commerce. His Excellency the Governor-General of the Dominion of New Zealand.

Sir, — Wellington, 11th August, 1934. I have the honour to submit the annual report of the Department of Industries and Commerce. This report deals with the work of the Department since the previous report was placed before Parliament, and covers generally the period ended 30th April, 1934. In certain instances, however, matters subsequent to that date are also referred to. I have, &c., G. W. Clinkard, Secretary. To Hon. R. Masters, Minister of Industries and Commerce.

BANKING RETURNS. The latest returns of the six trading banks operating in New Zealand, briefly commented upon below, cover the quarter ended the 30th June, 1934. Deposits for the quarter ended 30th June, 1934 (exclusive of Government deposits), totalled £63,735,896, as compared with £55,734,003 for the corresponding quarter of 1933 ; an increase of £8,001,893. Advances, on the other hand, aggregated £41,344,129, as against £46,757,111 for the quarter ended 30th June, 1933, a decrease of £5,412,982. As a result, there was an excess of deposits over advances for the last quarter of no less than £22,391,767, as compared with an excess of £8,976,892 for the corresponding period of the previous year. The relation of deposits to advances for the quarter ended 30th June in each of the past ten years is shown in the following table : —•

The deposits for the past quarter, totalling £63,735,896, consisted of free or non-interest-bearing deposits to the extent of £22,874,327, and fixed or interest-bearing deposits amounting to £40,861,569. These figures compare with £18,866,445 and £36,867,558 for free and fixed deposits respectively for the quarter ended 30th June, 1933. For the past quarter the former class of deposits consequently showed an increase of £4,007,882 and the latter class an increase of £3,994,011.

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Excess of Quarter ended 30th June, Deposits. Advances. Deposits. Advances. £ £ £ £ 1925 .. .. .. •• 51,463,635 43,935,770 7,527,865 1926 .. .. •• 48,269,349 48,714,742 .. 445,393 1927 .. .. .. .. 46,490,366 50,753,106 .. 4,262,740 1928 .. .. .. •• 52,947,133 45,426,955 7,520,178 1929 .. .. .. •• 57,051,894 47,407,211 9,644,683 1930 .. .. .. .. 53,748,038 54,063,162 .. 315,124 1931 .. .. .. •• 51,169,387 53,395,535 .. 2,226,148 1932 .. .. .. .. 52,216,782 50,581,395 1,635,387 1933 .. .. .. •• 55,734,003 j 46,757,112 8,976,891 1934 .. .. .. •• 63,735,896 ; 41,344,129 22,391,767

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Total deposits have thus reached a new record high level. Coming at the end of the export season, the June figures usually reach the highest level of the year. Since the June quarter of 1927 fixed deposits have shown a steady rise in each corresponding quarter in the subsequent years. The June quarter's figure for 1926 (£20,674,853) has practically doubled for the same quarter in 1934 (£40,861,569). The marked increase in free deposits is almost on a par with that of the fixed deposits and is indicative of a greater measure of confidence in business and trading conditions generally. The relative movements of the two classes of deposits for the quarter ended 30th June in each of the past ten years are shown in the table which follows :—

Deposits shown in the foregoing table do not include Government deposits which for the quarter ended 30th June, 1934, amounted to £1,017,649, as compared with £1,740,207 for the corresponding quarter of the previous year, a reduction of £722,658. Advances for the past quarter which, as previously mentioned, totalled £41,344,129, comprise ordinary advances aggregating £39,429,093, and notes and bills discounted £1,915,036. In comparison with these figures, ordinary advances for the corresponding quarter in the previous year totalled £46,147,379, and notes ancl bills discounted £609,732. The ordinary advances therefore showed a substantial decrease of £6,718,286, while the discounts also showed an abnormal variation in that they increased by £1,305,304. The average notes in circulation for the quarter ended 30th June, 1934, amounted to £6,423,115, as compared with £6,305,060 for the corresponding period of 1933, an increase of £118,055. Coin and bullion showed a decrease in value of £33,259, the relative figures being £5,045,199 in 1934 and £5,078,458 in 1933. GENERAL TRADE "REVIEW. In this report it is usual to make a brief review of the statistics of the overseas trade of New Zealand for the past calendar year. For the year ended 31st December, 1933, the value of exports from the Dominion was £41,301,951, as compared with £36,965,780 for the previous year, an increase of £4,336,171. Imports for 1933 aggregated £21,451,382, a reduction of £1,593,724, as compared with the figures for 1932 in which year the imports were assessed at £23,045,106. The foregoing figures are inclusive of specie, exports of which during 1933 amounted to £296,032, as compared with £1,355,861 for 1932. Specie imports during these two years were £424,704 and £55,310 respectively. Since New Zealand currency fell to a discount on sterling at the beginning of 1930, exports of merchandise have been expressed in terms of New Zealand currency, imports of merchandise from Australia in terms of Australian currency, and from other countries in terms of sterling. Specie exports and imports are, of course, recorded at their face value. In a comparison of one year's trade with another, it is preferable to omit specie exports and imports which, generally speaking, represent payments of debts and not additional trade, and the inclusion of which tend to obscure the trade position and movement. Specie is accordingly omitted from the following table, though it is as well to point out that exports of uncoined gold, which in the case of New Zealand ranks as an ordinary export commodity, are included. The figures of total trade and of balance of trade for the last four years are shown in terms of New Zealand currency : —

External Trade ( excluding Specie).

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Quarter ended 30th June, Fixed Deposits. Free Deposits. Total. £ £ £ 1925 .. .. .. 20,966,426 30,497,209 51,463.635 1926 .. .. .. 20,674,853 27,594,496 48,269',349 1927 .. .. .. 21,749,104 24,741,262 46,490,366 1928 .. .. .. 27,589,988 25,357.145 52,947,133 1929 .. .. .. 30,241,013 26,810,881 57,051,894 1930 .. .. .. 30,522,174 23,225,864 53,748,038 1931 .. .. .. 33,045,225 18,124,162 51,169,387 1932 .. .. .. 35,400,900 16,815,882 52,216,782 1933 .. .. .. 36,867,558 18,866,445 55,734,003 1934 .. .. .. 40,861,569 22,874,327 63,735,896 I

I Year ended Exoorts Imports Total External 31st December, P Imports. Trade. Exports. Imports. £ £ £ £ £ 1924 .. .. 52,509,223 48,527,60.3 101,036,826 3,981,620 1925 .. .. 55,243,047 52,425,757 107,668,804 2,817,290 1926 .. .. 45,268,924 49,811,763 95,080,687 .. 4,542,839 1927 .. .. 48,496,354 44.782,666 93,279,020 3,713,688 1928 .. .. 55,570,381 44,844,102 100,414,483 10,726,279 1929 .. .. 54,930,063 48,734,472 103,664,535 6,195,591 1930 .. .. 44,940,517 42,662,827 89,281,000* 601,000* 1931 .. .. 34,950,698 24,756,803 61,449,000* 8,453,000* 1932 .. .. 35,609,919 22,989,796 60,256,000* 10,964,000* 1933 .. .. 41,005,919 21,026,678 66,587,000* 15,425,000* * In terms of New Zealand currency.

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Exports. The table below sets out the quantities and values of the principal commodities exported from New Zealand in each of the past two calendar years : —

The foregoing table shows that with the exception of frozen mutton, pelts, and gold, increases in quantities exported were recorded in 1.933, while values for the same year showed improvement in all instances except cheese and frozen mutton. Owing to the low prices ruling in the case of cheese, a reduction in value occurred despite an increase in quantity shipped. The direction of our import trade in 1932 is disclosed by the table which follows, the figures for the three previous years being also given for purposes of comparison

Value of New Zealand's Exports (including Specie) according to Country of Destination, 1930-33.

Exports to all British countries during 1933 increased by £3,363,856, and those to foreign countries increased by £972,315. • In 1933 exports to British countries represented 91-6 per cent, of total exports, as compared with 93-2 per cent, in 1932, while exports to foreign countries represented 84 per cent, in 1933, in comparison with 6-8 per cent, in 1932. , , . . . , , . , ~ The percentages of total exports shipped to each of the principal countries trading with the Dominion during the past four calendar years are shown in the following table :

The principal feature of the foregoing table is, of course, the maintenance of the high proportion of the total volume of our export trade to the United Kingdom. In 1933 all other countries with the exception of Australia show advances over the percentages recorded in 1932.

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1932. 1933. Item. ' ; ■ Quantity. | Value. Quantity. Value. £ £ Butter .. •• Cwt. 2,185,545 10,639,053 2,635,247 11,648,699 Cheese •• „ 1,790,431 4,951,268 1,982,932 4,766,319 Beef frozen . • • 443,785 366,713 794,652 801,009 Lamb frozen .. „ 2,507,777 6,027,319 2,823,272 6,678,161 Mutton, frozen .. .. „ 1,339,349 1,466,425 992,744 1,310,375 Hides and calf-skins .. No. 1,149,760 306,053 1,292,014 544,385 Rabbit-skins .. .. „ 6,660,140 70,016 10,378,388 224,199 Pelts .. „ 11,999,210 542,165 11,813,685 609,630 Wool ■■ Bales 699,126 5,742,821 823,735 7,421,152 Tallow .. .. • • Tons 25,377 462,081 28,020 516,063 Kauri-gum .. •• 2,068 62,137 3,089 oIq'koo Gold .. Oz. 217,550 1,171,811 187,021 1,343,599 Sausage-casings .. ..lb. 3,772,068 266,273 4,525,194 39^61 Other items 4,891,645 4,965,926 Total exports .. • • • • 36,965,780 41,301,951

1930. 1931. 1932. 1933. British Possessions, Protectorates, &c.— £ £ £ £ United Kingdom .. •• 36,015,303 30,940,654 32,449,231 35,571,509 Australia •• •• 1,562,281 1,169,055 1,444,860 1,393,311 rlada I! .. .. 2,539,212 256,890 244,160 560,875 All other British countries .. •• 761,077 311,114 316,074 292,486 Totals, British countries .. 40,877,873 32,677,713 34,454,325 37,818,181 Foreign Countries and Possessions — United States •• 2,116,752 920,931 940,015 1,188,972 Belgium " •• •• 199,048 146,335 167,629 330,284 France " " .. •• 519,727 419,016 508,960 738,176 Germany " ' •• •• 401,084 309,847 289,917 376,886 T® _ y " i 154,741 267,899 236,799 354,462 All other foreign countries .. 671,467 411,287 368,135 494,990 Totals, all foreign countries .. 4,062,819 2,475,315 2,511,455 3,483,770 Totals, all countries .. •• 44,940,692 35,153,028 36,965,780 41,301,951

—— I I j Country of Destination. L930. 1931. 1932. j 1933. Per Cent. Per Cent. Per Cent. Per Cent. United Kingdom 80-17 88-02 87-79 86-12 Australia f-45 3" 33 3-91 3 37 Canada 5-65 0-73 0-66 1-36 United States 4-71 2-62 2-54 2-88 Belgium 0 " 44 °" 42 1 0-45 °' 80 S ce MB M9 ! 1-38. 1-79 Germany " Ū-89 0-88 | 0-79 0-91 7 0« 0-76 L 0-M 0-86

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Imports. Below are given the quantities and values of the principal items imported into New Zealand in each of the past two calendar years : —

The principal countries of origin of New Zealand's imports during 1933 are shown in the next table in comparison with the figures for the three preceding years : —

Value of New Zealand's Imports (including Specie) according to Country of Origin, 1930-33.

Imports from British countries during 1933 declined by £565,155 when compared with 1932, and imports from foreign countries receded by £1,028,569.

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1932. 1933. Item. j Quantity. . Value. Quantity. Value. .. ~ £ £ Wheat .. .. .. .. Centals 772,189 246,602 220,045 69,628 Flour .. .. .. .. „ 260,175 159,189 223,041 137,223 Sugar .. .. .. .. Cwt. 1,599,245 613,218 1,512,731 538,476 Tea .. .. .. ..lb. 10,414,706 378,683 11,600,254 498,596 Whisky.. .. .. .. Gal. 260,159 256,427 223,244 215,202 Cigarettes .. .. .. lb. 494,621 178,457 352,480 121,201 Tobacco .. .. .. „ 2,695,364 397,308 2,873,257 305,621 Apparel.. .. .. .. .. .. 1,336,910 .. 1,138,968 Boots and shoes .. .. .. Doz. prs. 205,261 414,031 232,048 376,610 Carpets and floorcoverings .. .. .. 225,263 .. 234,683 Drapery, &c. .. .. .. .. .. 271,467 .. 226,329 Cotton piece-goods .. .. .. .. 1,372,019 .. 1,283,604 Silk piece-goods .. .. .. .. .. 677,419 .. 587,207 Woollen piece-goods .. .. .. .. 425,175 .. 428,982 Petrol and kerosene .. .. Gal. 64,001,195 1,225,211 59,982,777 953,921 Coal .. .. .. .. Tons 103,531 111,377 99,272 103,909 Hardware .. .. .. .. .. 318,837 .. 289,837 Electrical appliances .. .. .. .. 936,692 .. 848,267 Timber .. .. .. .. .. .. 85,728 .. 146,197 Motor-vehicles .. .. .. No. 3,662 526,536 3,868 531,779 Motor-tires .. .. .. .. .. 608,802 .. 487,876 Other imports .. .. .. .. .. 12,279,755 .. 11,927,266 Totals, imports .. .. .. .. 23,045,106 .. 21,451,382

I I 1 j 1930. J 1931 - ! 1932. 1933. I ■ L - I I British Possessions, Protectorates, &c. — £ £ £ £ United Kingdom .. .. .. 20,333,986 12,192,649 11,496,027 10,789,280 India .. .. .. .. 637,832 392,088 354,647 461,539 Ceylon .. .. .. .. 704,759 617,042 351,567 442,628 South African Union .. .. 92,006 69,978 76,970 32,942 Canada .. .. .. .. 3,802,925 1,224,569 1,007,178 1,012,250 Australia .. .. .. .. 3,308,915 2,437,955 2,681,393 2,674,683 Fiji .. .. .. .. 200,877 102,979 106,041 84,877 All other British countries .. .. 510,637 394,479 484,293 494,762 Totals, British countries .. 29,591,937 17,431,739 16,558,116 15,992,961 Foreign Countries and Possessions — United States .. .. .. 7,573,053 3,885,073 3,267,086 2,383,451 France .. .. .. .. 608,076 327,646 269,789 198,639 Germany .. .. .. .. 975,460 574,500 459,971 378,753 Belgium .. .. .. .. 448,762 289,478 179,970 138,620 Japan .. .. .. .. 565,264 304,532 434,636 541,346 Dutch East Indies .. .. .. 811,372 848,216 793,622 798,579 All other foreign countries .. .. 2,451,990 1,151,774 1,081,916 1,019,033 Totals, all foreign countries .. 13,433,977 7,381,219 6,486,990 5,458,421 Totals, all countries .. .. 43,025,914 24,812,958 j 23,045,106 21,451,382

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In the table given below imports from each of the principal countries trading with New Zealand are shown for the past four years as percentages of total imports : —

The principal feature disclosed by the foregoing table is that in 1933 over 50 per cent, of our total imports came from the United Kingdom. The falling-off in the percentage of imports from Canada has been arrested in 1933, while Australia has shown gains in each year. Decreases are recorded in each year in the percentage originating from the United States. Tkade with the United Kingdom. New Zealand's exports to the United Kingdom during the calendar year 1933 were valued at £35,571,509, as compared with £32,449,231 for 1932, an increase of £3,122,278. Imports from the United Kingdom, on the other hand, showed a reduction of £706,747, from £11,496,027 to £10,789,280, in 1933. Our exports to the United Kingdom for 1933 represented 86-12 per cent, of total exports, in comparison with 87-79 per cent, in 1932, while the value of imports in the same two years represented 50-29 per cent, and 49-91 per cent, respectively. It is worthy of note that, for the first time since 1923, the proportion of our imports from the United Kingdom has exceeded the 50-per-cent. mark. The importance of the United Kingdom as a market for our principal primary products is reflected in the foregoing statistics of exports. It must be remembered, however, that a proportion of these exports to the United Kingdom are subsequently sold and re-exported to other countries, principally to the Continent. In 1931 and 1932, the latest years for which figures are available, the re-export trade of New Zealand produce from the United Kingdom amounted to a value approximating £3,800,000; the principal item being wool, £2,700,000. Tkade with Australia. The value of our trade with Australia in each of the past five calendar years is shown in the table below

Next to the United Kingdom, Australia was our best customer in 1933, and during the same year Australia replaced the United States as second in importance to the United Kingdom in the value of commodities imported into New Zealand. Although the balance of trade with Australia has been definitely set against us in past years, it is satisfactory to note that in 1933 there were many instances of increases in the volume of New Zealand products exported to Australia, chief amongst these being fresh, frozen, and canned fish, sheep skins and pelts, tallow, glycerine, blood and bone fertilizers, wool, grass, and other seeds, and timber.

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! I I Country of Origin. 1930. 1931. 1932. 1933. Per Cent. Per Cent. Per Cent. Per Cent. United Kingdom .. .. .. 4/7-27 49-17 49-91 50-29 India .. .. .. .. 1-48 1-58 1-54 2-20 Ceylon .. .. .. .. 1-64 2-49 1-53 2-07 South African Union .. .. 0-21 0-28 0-33 0-15 Canada ... .. .. .. 8-84 4-94 4-37 4-72 Australia .. .. .. .. 7-69 9-80 11-64 12-47 Fiji .. .. .. .. 0-47 0-42 0-46 0-39 United States .. .. .. 17-60 15-65 14-18 11-11 France .. .. .. .. 1-41 1-32 1-17 0-92 Germany .. .. .. .. 2-27 2-32 2-00 1-77 Belgium .. .. .. .. 1 -04 L -17 0-78 0-65 Japan .. .. .. .. 1-31 1-23 1-89 2-52 Dutch East Indies .. .. .. 1-88 3-42 3-45 3-72

I I ■ Year ended Exports to Imports from | t| , , , , 31st December, Australia. Australia. £ £ £ 1929 .. .. 2,338,410 3,258,727 5,597,137 1930 .. .. 1,562,281 3,308,915 4,871,196 1931 .. .. 1,169,055 2,437,955 3,607,010 1932 .. .. 1,444,860 2,681,393 4,126,253 1933 .. .. 1,393,311 2,674,683 4,067,994

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The volume of imports from Australia during 1933 has remained at a level with the 1932 figures, and for the first time since 1914 Australia regained second place to the United Kingdom in the value of commodities imported into New Zealand. In eleven of the classified export groups from Australia, out of a total of twenty-one New Zealand in 1933 was Australia's best, customer. The Trade Agreement (New Zealand and Australia) Ratification Act, 1933, which had an uninterrupted passage through the respective Houses of Parliament and which came into effect by Proclamation on the Ist December, 1933, has not yet been sufficiently long in force to enable a comprehensive survey to be made in this report as to the outcome of the trading facilities and advantages now afforded both countries. As a result of the trade agreement, however, there are already many definite indications of a greater demand for numerous items of New Zealand produce, and it is anticipated that during 1934 there will be a considerable increase in the exports to Australia of many of our products, particularly timber and fishery products. The Trade Commissioner in Australia (Mr. L. J. Schmitt) has been continually active in looking to the interests of New Zealand producers and exporters, and has from time to time reported upon the prospects of developing markets for many of our products not hitherto exported to Australia in the quantities they have every prospect of assuming. The quantities and values of some of the principal commodities exported to Australia in each of the past two years are shown hereunder : —

Trade with Canada. The value of our export, import, and total trade with Canada in each of the past five years is shown in the following table, together with the percentages which such trade bears to total exports and imports : —

It is gratifying to note that there has been an increase recorded in the value of our exports, whilst the imports remain fairly constant during the past three years. Values increased particularly in wool, hides and skins, sausage-casings, and apples.

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1932. 1933. Quantity. Value. Quantity. 1 Value. £ £ Timber, sawn .. .. Sup. ft. 26,244,540 239,313 23,469,968 213,930 Fish, frozen .. .. Cwt. 17,988 35,804 26,466 45,400 Sausage-casings .. .. lb. 270,302 8,384 281,721 lo'372 Onions .. .. .. Tons 1,269 10,404 5 23 Hides, pelts, and skins — Calf-skins .. .. No. 316,206 42,262 101,028 | 16,982 Cattle-hides .. .. „ 117,403 89,701 88,212 ! 100,768 Deer-skins .. .. „ 7,420 2,164 1,698 j '381 Sheep-skins with wool .. „ 12,966 1,440 16,145 1,865 Sheep-skins without wool .. „ 365,915 12,864 257,493 8^212 Phormium fibre and tow .. Tons 2,560 32,168 2,370 28,340 Grass and clover seeds .. Cwt. 15,944 40,024 "19,475 41,513 Peas .. .. .. Centals 25,774 28,548 17,482 19^270 Pumice sand and stone .. Tons 3,045 11,361 2,112 7,686 Sugar of milk .. .. lb. 172,480 4,763 170,240 } 5*007 Wool .. .. ..lb. 3,002,534 88,340 6,087,740 j 170,045 Tallow .. .. .. Tons 893 18,237 1,116 23,159 Gold, raw.. .. .. Oz. 31,706 175,690 27,188 ! 185,739

Year ended 31st December, Canada* 0 of Total Trade. Exports. ' Imports. £ £ £ 1929 .. .. .. 3,353,975 6'03 4,792,820 9-81 8,146,795 1930 .. .. .. 2,539,212 5-65 3,802,925 8-84 6,342 137 1931 .. .. .. 256,890 0-73 1,224,569 4-94 1,481459 1932 .. .. .. 244,160 0-66 1,007,178 4-37 1,251,338 1933 .. .. .. 560,875 1-36 1,012,250 4-72 1,573,125

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The values of the principal items exported to Canada from New Zealand in 1933 are shown below, in comparison with the figures for the previous four years : —

During 1933 the values of our principal imports from Canada were : Printing-paper, £194,042 ; wrapping-paper, £24,290 ; wheaten flour, £69,092 ; wheat, £43,005 : boots and shoes, £61,752 ; fish preserved in tins, £44,894 ; hosiery, £56,977 ; motor-vehicles, £79,804 ; rubber tires, £112,898 ; electrical machinery and apparatus, £36,131. In making his annual report to the Department for the year ended 31st March last the New Zealand Trade and Tourist Commissioner in Canada states that since April, 1933, and notwithstanding the depressed state of agriculture, there has been a steady improvement in general business conditions in Canada. Conditions in the manufacturing industries may be described as surprisingly buoyant. As far as New Zealand's exports to Canada are concerned, there has been a marked advance in both volume and value. Out of twenty-three British countries exporting to Canada only five, including New Zealand, could claim increased values for the Canadian fiscal year 1933-34. Of all the countries compared, New Zealand showed the highest percentage increase over 1932-33— viz., 266 per cent. The appreciable gains made in two main commodities —wool and hides —must be regarded as very satisfactory, as New Zealand can now claim to be the largest Empire supplier of such raw material to Canada. Special attention has been paid by the Commissioner to the development of our trade in such products as grass-seeds, hides and skins and wool, sausage-casings, timber, kauri-gum, onions, apples, hemp, frozen and canned meats, toheroas, neatsfoot oil, olein oil, eggs, oyster-shell grit, casein-glue paste, pumice sand, silica, floor-rugs, &c. Further surveys have been made by the Commissioner during the year as to the possibilities of the developing of the markets for New Zealand products in Canada, and relative reports have been forwarded periodically to the Department. The information contained in these reports has been promptly disseminated to all exporting interests likely to be concerned. Trade with the United States. Exports from New Zealand to the United States in 1933 were valued at £1,188,972, as compared with £940,015 in 1932. Expressed as percentages, the figures represented 2-88 per cent, and 2-54 per cent, respectively of total exports in these years. Imports into New Zealand from the United States during 1933 were valued at £2,383,451, in comparison with £3,267,086 for the previous year, a reduction of £883,635. These figures represented 11-11 per cent, and 14-18 per cent, respectively in 1933 and 1932. The proportion of our imports obtained from the United States has shown a substantial decline over the past five years —viz., from 19-10 per cent, in 1929 to 11-11 per cent, in 1933. The position, so far as our trade with the United States is concerned, during the past five years is briefly summarized in the table below : —

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■ ) I i ■ 3929. 1930. 1931. 1932. 1933. I I : , £ £ £ £ £ Butter .. .. ; 2,707,669 1,978,281 20,797 29,441 31,320 Sausage-casings .. 265,521 331,208 117,761 40,523 129,129 Wool .. .. .. 199,117 86,274 57,540 81,295 149,085' Hides, pelts, and skins .. 63,904 50,876 25,152 45,749 195,562 Seeds .. .. .. 11,962 15,376 11,153 4,757 3,363 Frozen meat .. .. 36,197 32,616 2,719 3,884 4,143 Apples .. .. .. 6,000 6,525 447 7,583 13,358 Kauri-gum .. .. .. 7,796 4,726 4,074 3,096 2,146 Phormium fibre .. .. 9,254 4,453 1,291 2,614 604

! ! I Exported to the 1 Per Cent, of Total i Imports from the Per Cent, of Total Year ended 31st December, United States. Exports. ! United States. Imports. I I ' I | £ £ 1928 .. •• •• 4,260,315 7-58 8,204,197 18-28 1929 .. 3,653,427 6-57 9,-319,926 I 19-10 1930 2,116,752 4-71 7,573,053 ! 17-60 193] .. .. .. 920,931 2-62 3,885,073 } 15-65 1932 .. .. 940,015 2-54 3,267,086 14-18 1933 . .. .. 1.188,972 2-88 2,383,451 11-11

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The values of the principal items exported to the United States in 1933 are shown below in comparison with the figures for the previous four years : —

As will be seen from the table, the value of our exports in 1933 in hides and skins, wool, sausagecasings, and kauri-gum have shown substantial advances over the preceding year. These gains must be considered very satisfactory to New Zealand when they have been won in the face of severe competition and at a time when the United States is still adopting a policy of economic nationalism The most important item in our inrports from the United States in 1933 was again motor-spirit and other mineral oils, which item was valued at £919,472, in comparison with £1,480,545 in 1932. The New Zealand Trade Commissioner in Canada has continued to maintain contact with leading importers in the United States who are interested in handling our products, and particular attention has been given to the eastern seaboard ports, where agencies for most of the principal New Zealand export products are already established. With the lifting of the embargo against New Zealand fruit by the United States there are prospects of our exports in apples and pears reaching such proportions that this new market will be of considerable value to New Zealand. Trade with the British West Indies. Acting under instructions, the New Zealand Trade and Tourist Commissioner in Canada and the United States of America (Mr. J. W. Collins) recently visited the British West Indies with the object of gaining a first-hand knowledge of the present and potential market for New Zealand products in that territory. His official report was adopted and issued m the form of Bulletin No. 27, which was broadcast throughout the Dominion to all those persons, firms, and organizations who were likely to be interested or to become interested in the development of these comparatively new markets. The Commissioner visited Jamaica, Bermuda, and the Bahamas, and also submitted a report upon the trade prospects in Barbados, although he did not actually visit this last-mentioned territory. A very thorough examination was made of the possible outlets for our products, together with an investigation of relative facilities in respect to shipping, freight rates, Customs duties, cold storage, methods of wholesale and retail distribution, advertising, &c. In the three territories visited particular attention was paid to the established requirements of the market, and interviews were arranged with all wholesale houses and other establishments likely to be interested in handling New Zealand products. The names of these traders, together with a list of the commodities coming within the scope of their trade, have been referred direct to all exporters in the Dominion who handle the particular commodity concerned. During the past two years New Zealand, mainly through the institution of a direct freight service, has dominated the butter market in Jamaica. In practically all other lines the competitive-price element, owing to recessions in world commodity prices generally, is so prominent that some difficulty is being experienced in successfully marketing many of our products which are comparable in quality to those now consumed in the British West Indies. The Commissioner's visit, however, has definitely proved that the present and future trade prospects are more than favourable to us, particularly when these British colonies are bound to us by ties of Empire and practically the whole of the marketing organization lies in the hands of reputable houses whose business operations are carried on in accordance with the best British traditions and whose integrity is therefore unquestioned. i The question of reciprocal trade with the British West Indies was stressed by the Commissioner in the course of his visit, and the continuation of the present good will which exists between New Zealand and the British West Indies cannot but result in an increase in mutual trading benefits. In addition to the development of the market for our dairy products, the prospects appear favourable for further trade in fresh and canned fruits, canned vegetables, meats and fish, preserved milks, barrelled and salted beef and pork, and fresh frozen meats and various other products of lesser importance. It now remains for individual exporting interests to take advantage of the contacts that have been made for them and by enterprise and initiative develop the trading opportunities thus made available.

8

1929. 1930. 1931. 1932. 1933. £ £ £ £ £ Hides, pelts, and skins (calf, 1,649,539 1,055,652 438,862 282,496 713,490 cattle, rabbit, sheep) Sausage casings and skins .. 262,559 331,627 151,592 99,674 170,019 Wool .. .. .. 656,656 267,720 41,278 32,044 88,923 Phormium tenax .. .. 138,776 83,255 4,115 1,768 756 Kauri-gum .. .. .. 129,432 69,496 36,520 14,498 28,591 Frozen meat .. 338,385 16,020 1,261 316 1,179 Seeds .. .. .. 76,615 66,905 58,202 28,953 22,066 Tallow .. .. .. 23,086 9,505 2,445 2,049 1,327

H.—44.

Island Trade. Fiji. Exports from New Zealand to Fiji in 1933 were valued at £87,435, as compared with £88,693 in. 1932. Imports into the Dominion from Fiji showed a reduction from £106,041 in 1932 to £84,877 in 1933. The values of New Zealand's exports and imports to and from Fiji in each of the past five calendar years are set out below for purposes of comparison : —

Exports of New Zealand produce to Fiji consist of a fairly wide range of commodities, of which the following were some of the more important in 1933 : — Potted and preserved meats, £6,608 ; potatoes, £4,041 ; refined sugar, £3,327 ; tea, £3,017 ; tallow, £2,753 ; bacon and hams, £2,472 ; soap, £2,184 ; dried, preserved, and condensed milks, £1,256 ; confectionery, £1,042 ; sawn timber, £1,000; fresh apples and pears, £690 ; onions, £597. Imports from Fiji consisted mainly of raw sugar and fresh fruits, the values of these items in 1933 being £20,003 and £59,974 respectively. Imports of raw sugar showed a considerable reduction when compared with 1932, in which year the value was £46,811. The other main sources of supply for this commodity in both years were the British East Indies and Cuba. Imports of fresh fruit, consisting mainly of bananas, were valued at £54,830 in 1932, as compared with the figure shown above for 1933, £59,974. Notwithstanding the adverse effect of the Ottawa Agreement upon certain preferential tariff advantages which New Zealand enjoyed over Australia, it is satisfactory to note that our exports to Fiji remain at a comparatively high level. In January last Sir A. G. Murchison, the Governor of Fiji, visited the Dominion and advantage was taken to discuss with him matters relating to the further development of reciprocal trade between New Zealand and Fiji. Western Samoa. The value of the total import and export trade of Western Samoa in each of the past five calendar years is shown in the following table : —

Of the total value of importations in 1933, aggregating £150,856, the following proportions were obtained from the countries named : New Zealand, £51,034 ; Australia, £33,643 ; United Kingdom, £30,762 ; United States, £12,117 ; Fiji, £6,802 ; Canada, £4,515 ; Japan, £3,613 ; British East Indies, £3,497. These eight countries together supplied 97-4-3 per cent, of the imports into Western Samoa during 1933. Exports from Western Samoa in 1933, totalling £173,837, were shipped to the countries mentioned below, and to the extent indicated : — £ European countries (exact destination unknown) . . . . . . 76,290 United Kingdom . . . . . . . . . . . • . . 37,839 New Zealand . . .. . . . ■ • • ■ ■ • • 28,125 United States .. .. .. .. • • 27,638 Other countries .. . . . . . ■ • • ■ ■ . . 3,945 Total £173,837 As was the case in 1932, New Zealand ranks third in importance as a market for the products of this territory. The main commodity taken by New Zealand was again bananas, amounting to 81,983 cases valued at £26,999. In 1932 the corresponding value was £20,016. The balance of exports to New Zealand in 1933 mainly comprised cocoa-beans, valued at £932.

2—H. 44.

9

Year ended 31st December, ! Exports to Fiji. | Importsfrom Fiji. £ £ 1929 .. .. •• •• •• 1 135,652 174,894 1930 .. .. •• •• •• 110,033 200,877 1931 .. .. .. .. .. 89,245 102,979 1932 . .. .. ■■ •• ■■ 88,693 106,041 1933 .. .. •• •• 87,435 84,877

Year ended 3.St December, | ■g," | '"ZZT | £ £ £ 1929 .. .. .. 288,849 293,938 ; 582,787 1930 . .. • • 275.355 284,515 : 559,870 1931 .. .. .. 164,950 194,447 ! 359,397 1932 .. .. .. ■ • 150,902 183,028 333,930 1933 .. .. . •• 150,856 173,837 324,693

H.—44

The quantities and values of the principal exports of Western Samoa during the past five years are shown hereunder :—

Cook and Niue Islands. Exports from the Cook and Niue Islands together in 1933 were valued at £85,525, in comparison with £87,396 in 1932, while imports into these islands in 1933 amounted to £89,839, as compared with £78,341 in the preceding year. The figures of exports from and imports into these islands are shown below for the past five years : —

Most of the trade of these territories is naturally conducted with New Zealand, whose share of the total trade (£175,364) in 1933 was £133,909, or 76-4 per cent. The United States and the United Kingdom come next in order. The distribution of the trade of the group in 1933 is shown hereunder :—

The principal exports from the Lower Group of the Cook Islands are oranges, bananas, tomatoes, and copra ; from the Northern Group copra and pearl-shell ; and from Niue copra and bananas.

10

Copra. Cocoa-beans. Bananas. Year ended 31st December, Tons. Value. Tons. Value. Cases. Value. £ £ £ 1929 .. .. 12,914 205,330 677 46,286 53,652 24,640 1930 .. .. 12,285 166,221 1,007 61,294 95,867 44,259 1931 .. .. 11,062 109,220 620 35,284 85,225 39,022 1932 .. .. 10,879 108,698 825 49,712 166,715 20,016 1933 .. .. 11,525 101,347 898 41,813 81,983 26,999

Exports. Imports. Year ended i 31st December, | Cook Islands. Niue Island. Total. Cook Islands. Mue Island. Total. ££££££ 1929 .. .. 124,486 22,206 146,692 106,835 19,107 125,942 1930 .. .. 109,438 15,877 125,315 103,468 18,630 122,098 1931 .. .. 79,945 7,191 87,136 69,260 11,507 80,767 1932 .. .. 73,409 13,987 87,396 63,585 14,756 78,341 1933 .. .. 73,983 11,542 85,525 76,716 13,123 89,839

Exports. Imports. Country. r • From Cook From Niue : „ , Into Cook Into Niue „ , , Islands. Island. | iotal - Islands. Island. TotaL ££££££ New Zealand .. .. 59,262 10,225 69,487 54,022 10,400 64,422 United States .. .. 8,797 1,315 10,112 6,667 2 6,669 United Kingdom .. .. 743 .. 743 8,762 1,442 10,204 France .. .. .. 2,572 .. 2,572 Western Samoa .. .. 1,574 .. 1,574- .. 214 214 Tahiti .. .. .. 1,035 .. 1,035 297 .. 297 Canada .. .. .. .. .. .. 918 39 957 Australia .. . . . . . . . . .. 4,401 841 5,242 Fiji .. .. .. .. .. .. .. 36 36 Japan .. .. .. .. .. .. 573 128 701 Other countries .. .. .. 2 2 1,076 21 1,097 Totals .. .. 73,983 11,542 85,525 76,716 13,123 89,839

H.—44

11

Tonga. The table given hereunder shows the values of New Zealand's exports to and imports from Tonga in each of the past five calendar years : —

The value of our export trade with the Kingdom of Tonga thus again showed a substantial decline 011 the figures for the four previous years. The increase in our import figures from Tonga in the past two years is almost entirely due to importations of bananas, the figures for which were :• — In 1932 = 3,291,000 lb., valued at £9,294. In 1933 = 1,642,000 lb., valued at £7,851. The -values of the principal commodities exported to Tonga from New Zealand in 1933 were as follows: Tinned meats, £6,435 ; meats, all classes other than tinned, £760; sugar, £1,678 ; provisions, £877 ; timber, £968 ; miscellaneous hardware and ironmongery, £781 ; cordage and rope, £463 ; butter, £559.' Trade with the East. During the year efforts by the Department have not been relaxed in endeavouring to foster our export trade with Eastern countries. While world economic conditions have been definitely against an expansion of our trade in various commodities no great headway has been made, but the return of more favourable conditions should see a substantial increase in the volume of our trade with the East. Numerous inquiries continue to be received from all parts of the East and for a variety of New Zealand products, and in all such instances the inquirers have been placed in direct contact with persons, firms, and organizations likely to be interested. Unfortunately, the lack of direct shipping services remains the principal barrier to developing trade to greater proportions. The Department has honorary trade representatives in India, Ceylon, Hong Kong, and China, and these gentleman are of considerable assistance in submitting market reports and other information essential to New Zealand exporters desirous of extending their trade with such countries. The following table shows the value of our export and import trade with various parts of the East for each of the past three calendar years

The outstanding increases in the value of our exports are those to Japan, mainly accounted for by wool, tallow, and casein, and to China, mainly accounted for by preserved milks. A more correct comparison of our trade with the countries enumerated would perhaps be made by showing the volume of the various classes of commodities exported instead of comparing the total

Year ended 31st December, Exports to Tonga. Imports from Tonga. £ £ 1929 .. .. .. •• 58,599 138 1930 47,958 19 1931 .. .. .. 29,926 625 1932 27,266 9,412 1933 .. .. •• 19,407 8,331

1931. I 1932. 1933. Export to — £ £ £ , Dutch East Indies .. •• 10,205 5,255 5,496 British Malaya ■■ •• ■■ 14,922 26,868 22,929 Burma .. • • • • ■ • 827 743 Ceylon •• •• 5,093 3,498 2,670 IlK lia .. .. 59,185 53,378 34,326 China ■■ •• 17,625 15,413 54,564 Japan .. • • ■■ 267,899 236,799 354,462 Imports from — Dutch East Indies .. 848,216 793,647 798,579 British Malaya .. • • •• 56,949 86,431 50,545 Burm a .... 10,459 13,437 13,784 C ey lon ■■ 617,042 351,598 442,628 India • 392,088 354,752 461,539 Japan ■■ 304,532 434,746 541,346 China ■■ •• 82 . 257 77 > 283 58 ' 228

H.—44

values. In the table given below some of the principal items have been selected and are shown in terms of quantities :—

Overseas Trade Representatives. The Department's trade representatives overseas are well distributed over ali parts of the world where our trade is likely to develop and expand. With the exception of the two Trade Commissioners in Canada and Australia, most of the other representatives act in a purely honorary capacity, and opportunity is here taken to place on record the Department's appreciation of the assistance and. close co-operation which has at all times been received from these representatives. Each year sees an increase in the volume of trade inquiries and general matter handled and consequently the value of these services continually becomes enhanced. The producing and commercial interests in general in New Zealand in an endeavour to develop their trading connections find the facilities afforded by these gentlemen almost invaluable when it comes to making the necessary commercial contact with the distributive groups in overseas countries. Numerous trade inquiries relating to the opportunities presenting themselves for further expansion of our export markets are continually being received in increasing numbers, and the information respecting these is immediately disseminated to all producers and exporters likely to be interested therein. In this way is built up no small portion of a trade that is capable of expansion into larger volumes. To the two official Trade Commissioners in Australia and Canada every credit is due for the manner in which they continue to so ably represent the Dominion in trade and tourist matters. The attention of the business and commercial community in the Dominion is again drawn to the facilities afforded by the Government representatives, agents, and correspondents in various parts of the world, fhey are there at the disposal of any person or firm desiring to extend trade relations with the countries concerned, and it is hoped that exporters and merchants in New Zealand will co-operate with the Department and with Trade Commissioners or honorary representatives concerned by utilizing to the fullest possible extent the services and facilities which are offered. NEW ZEALAND MANUFACTURERS' FEDERATION. At the annual conference of Manufacturers' Associations held in Wellington in November last year it was decided that the time had arrived for the constitution of a permanent Dominion organization. The Federation's functions are many and varied, including the fostering of a buyer's preference for New-Zealand-made goods, collaboration with the Standards Institution, representation of manufacturers' interests in connection with proposed legislation, research and publication of information in regard to manufacturing industries, the amicable settlement of any disputes or conflict of interests that may occur between different branches of industry, receiving and bringing to the attention of firms any complaints that may be made about the quality of particular manufactured goods, and generally the development and co-ordination of industrial activities and promotion of mutual understanding and good will between manufacturing interests and other branches of New Zealand industry and the general public.

12

" ! 1931. ! 1932. ! 1933. I I J Wool ' Japan .. .. Bales 18,613 22,090 27,305 Mia .. . . 366 667 227 Cllma „ 116 82 75 Tallow— India .. .. Tons 1,169 1,626 918 Ja P an •• „ 1,492 473 1,088 Butter— India .. .. Cwt. 786 968 1,120 Burma .. .. 106 126 ' 126 Ceylon • • „ 703 431 277 Malaya •• „ 1,650 363 931 China .. .. 648 1,449 1,732 Dutch East Indies .. ,, 555 368 134 Japan . . . . „ 712 603 375 CaseinJapan ■■ „ 28,092 20,509 25,035 Cheese— China •• 445 745 524 Honey— Malaya .. Lb. 1,800 3,600 6,635 īndi a •• ■ • „ 1,800 1,200 600 Milk and cream— Burma .. .. „ 600 974 3,173 Ce y lo n •• •• „ 31,360 16,800 11,200 India .. .. „ 5,460 8,220 78,509 Malaya .. .. „ 93,648 1,362,574 882,206 China. „ 1,248 197,728 276,683 Japan .. .. „ 6,720 48,060 24,400 Dutch East Indies .. ,, 58,880 16,570 26,812

H,— 44

MANUFACTURERS' ASSOCIATIONS. Tie District Officers of tie Department in tie four ciief centres are closely associated witi tie Manufacturers' Associations, and attend in an advisory capacity tie regular meetings of tie executives. Tie Auckland Association in its forty-seventi annual report records a roll of 292 members. Tie Winter Siow was again ield during tie year, tie financial results being most gratifying. Present indications point to record entries being received for space in the Winter Show to be held from 18ti to 28th July next. The Wellington Association held its thirty-eighth annual meeting on 30th November and reported a membership of 216. The annual exhibition was held during Easter week, and many interestingexhibits of New-Zealand-made articles, showing high-class workmanship and quality, were featured. The association was given practical support of the movement for standardization and simplification by the appointment of representatives on various sub-committees of the Standards Institution. The Canterbury Association's membership recorded in the fifty-fourth annual report was 243. The eighth annual Winter Exhibition was held again in King Edward Barracks. The interest shown in this form of propaganda was demonstrated by the fact that the space available was all booked two weeks prior to the opening-date. The exhibits represented a good many industries and proved of interest to visitors. The work of a sub-committee known as the development of industries committee has devoted considerable attention to the unemployment problem generally and particularly in conjunction with the Boys' Employment Committee, the question of employment of youth. The erection of a permanent exhibition building and office has been under the consideration of the association for some years passed, and it is hoped shortly to obtain the necessary finance to commence building operations. The membership of the Dunedin Association remains at 150. A " Made-in-New-Zealand " Week —15th to 23rd May—was the' association's main propaganda effort this year. This form of publicity is always made possible as far as Dunedin is concerned by the whole-hearted support and co-operation of retailers, and the results of this year's effort have eclipsed those of former years. The press of Dunedin has, as in former years, cordially supported the effort by issuing special " Made-in-New-Zealand " supplements at the commencement of the week. STATISTICS RELATING TO MANUFACTURING INDUSTRIES. The latest figures available are for the year ended 31st March, 1933. A slight improvement over the figures of the preceding year is shown in the comparison of the two years set out hereunder : —

Analysis of tie data for tie various industries discloses tie following principal differences for tie years 1931-32 and 1932-33. Persons Employed. Increases. —Clotiing, 461 ; meat freezing, &c., 325 ; sawmilling, 196 ; butter and cieese, 146 ; woollen mills, 133. Decreases. —Coacibuilding and motor-engineering industry, 530; general engineering, 362; furniture, 195. Salaries and Wages paid. Tie annual salaries and wages bill siowed a decrease of £594,787, or 4-7 per cent, in 1932-33, tie aggregate being £12,048,148 in 1932-33, and £12,642,935 in 1931-32.

13

ear ' Index Numberi, 1932-33 1931-32. 1932-33. (1931-32 = 100). ___ __ _ - Establishments (number) .. .. 4,969 4,993 100 Persons engaged— Males (number) .. .. .. 52,922 52,454 99 Females (number) .. .. .. 15,775 16,467 104 Total number .. .. 68,697 68,921 100 Salaries and wages paid'— £ £ To males .. .. .. .. 11,194,608 10,588,745 95 To females .. .. ..I 1,448,327 1,459,403 101 Total .. .. 12,642,935 12,048,148 95 Motive power (horse-power) .. .. 533,788 642,116 120 £ £ Cost of materials used .. .. 42,343,078 42,600,490 101 Other expenses 9,617,237 10,251,204 107 Value of products 67,813,394 68,138,064 100 «dded value 25,470,316 25,537,574 100 Value of— £ £ Land and buildings .. .. .. 22,988,577 22,909,677 100 Plant and machinery .. .. 42,918,441 42,945,770 100 Total .. .. .. .65,907,018 65,855,447 100

H.—44.

The greatest decrease in the figures for any industry was recorded in the coachbuilding and motor and cycle engineering industry, which showed a decline of £164,486 in comparison with 1931-32. The principal decreases in other industries are as follows : Printing and publishing, £125,935 ; engineering, &c., £99,145 ; electric-supply, £57,274. Added Value. From an industrial viewpoint, the best measure of the importance of an industry is the value created by the manufacturing operations carried on with the industry. This value is obtained by deducting the cost of materials used from the gross value of the products, and is referred to as the " added value." As the basis of the added value is the value of products it is clear that it must be affected by fluctuations in values, and this fact must not be overlooked when use is made of this figure. The added value for 1932-33 shows a slight upward movement of £67,258, or 0-3 per cent., as compared with the previous year. In the following tables the various classes of industries contributing to the factory production of the Dominion have been grouped according to general character : —

Table showing for the Years ended 31st March, 1931, 1932, and 1933, Figures relating to the Various Industries classified into Four Groups as stated.

14

Persons ' Salaries and «ost °{ Value of Value added J Land, Building», Year. j n7 • i Materials ,, A , by Plant, and engaged. Wages paid. used Products. Manufa y cture . Machinery- ] , L ! : ! Group 1. Group 1 includes. meat-freezing; ham and bacon curing; butter, cheese, and condensed milk; sausage-casings; fellmongering and wool-scouring ; boiling-down and manure-making. Number. £ £ £ £ £ 1930-31.. 11,447 | 2,844,654 27,238,675 33,942,533 6,703,858 9,152,203 1931-32.. 11,203 | 2,633,567 24,376,639 31,029,564 6,652,925 9,059,313 1932-33.. 11,684 j 2,634,260 24,440,749 32,094,798 7,654,049 9,158,560 Group 2. Group 2 includes gas making and supply, electricity generation and supply. Number. £ £ £ £ £ 1930-31.. 4,494 1,128,884 j 4,230,372 6,024,277 1,793,905 31,405,217 1931-32.. 4,510 1,066,603 4,149,364 5,837,744 1,688,380 32,203,007 1932-33.. 4,406 1,003,961 J 4,316,691 5,950,247 1,633,556 32,197,635 Group 3. Group 3 includes fish curing and preserving; log-sawmilling; lime crushing and burning, &c. ; brick, tile, and pottery making ; concrete block or pipe and fibrous plaster making ; pumice insulation ; flax-milling. Number. £ £ £ £ £ 1930-31.. 9,809 2,101,547 2,058,063 6,557,304 4,499,241 5,601,576 1931-32.. 6,535 1,179,631 975,989 3,226,070 2,250,081 3,942,391 1932-33.. 6,501 1,099,682 871,247 2,956,421 2,085,174 3,892,480 Group 4. Group 4 includes all other industries. Number. £ £ £ £ £ 1930-31.. 52,164 9,541,967 14,931,246 32,691,302 17,760,056 | 20,659,154 1931-32.. 46,449 7,763,134 12,841,086 27,720,016 14,878,930 20,702,307 1932-33.. 46,330 7,310,245 12,971,803 27,136,598 14,164,795 20,606,772 Percentage of each Group to Total. 1930-31. 1 .. j 14-69 18-21 56-21 42-85 21-80 13-70 2 .. 5-77 7-23 8-73 7-60 5-83 47-00 3 .. 12-59 13-46 4-25 8-28 14-63 8-38 4 .. 66-95 61-10 30-81 41-27 57-74 30-92 Totals : 100-00 100-00 100-00 100-00 100-00 100-00 ( 1931-32. 1 .. 16-31 20-83 57-57 45-76 26-12 13-75 2 .. 6-57 8-44 9-80 8-61 6-63 48-86 3 . .. 9-51 9-33 2-30 4-76 8-83 5-98 4 .. 67-61 61-40 30-33 40-87 58-42 31-41 Totals 100-00 100-00 100-00 100-00 100-00 100-00 j r i 1 ' 1 1932-33. 1 .. 16-96 21-86 | 57-37 47-10 29-97 13-91 2 .. 6-39 8-33 10-13 8-73 6-40 48-89 3 .. 9-43 9-13 2-05 4-34 8-16 5-91 4 .. 67-22 60-68 30-45 39-83 55-47 31-29 Totals 100-00 100-00 100-00 100-00 100-00 100-00

H.— 44,

TIMBER. The production of the main varieties of timber in the Dominion for the past ten years (ending 31st March) is given in the following table : —

Included in the table above under other species not specified are Pinus insignis and beech. The production of these species for the past five years is as under :— Pinus insignis. Beech. Sup. ft. Sup. ft. 1929 .. .. .. .. 9,168,412 9,845,606 1930 .. .. .. .. 10,381,585 10,225,255 1931 .. .. .. .. 12,739,925 7,680,913 1932 .. .. .. .. 13,404,700 5,756,868 1933 .. .. .. .. 14,676,010 5,781,441 Exports. The export trade in timber for twelve months ended 31st December, 1933, shows a reduction of 1,484,816 in superficial feet and £16,199 in value. The relative figures for the two periods are shown as under :— i ~ r

Imports. The following table shows, in thousands of superficial feet, the quantities of imported timber that directly compete with New Zealand native timbers : —

15

Y (i'ip pflHpil 31st March ' Total. ■ Kauri. j Rimu. White-pine. Matai. Totara. Othere. r ' : ' ■ 1 * ■ Sup. ft. Sup. ft. Sup. ft. Sup. ft. Sup. ft. Sup. ft. Sup. ft. 1924 .. 317,069.216 19,743,196 181,093,581 56,699,443 24,326,148 18,904,361 16,302,487 1925 .. 344,094,874 22,891,535 195,572,705 65,572,439 23,947,707 18,509,551 17,600,937 1926 .. 353,224,196 22,765,877 195,451,758 75,634,869 26,141,027 14,109,576 19,121,089 1927 .. 305,675,258 18,474,981 170,498,282 65,490,059 19,380,469 14,179,462 17,652,005 1928 .. 269,783,000 15,874,000 156,314,000 53,736,000 15,207,000 15,728,000 17,924,000 1929 .. 270,214,420 10,742,967 156,239,992 56,790,306 15,752,744 8,610,639 22,077,772 1930 .. 282,405,173 10,471,297 163,293,288 58,505,364 17,972,243 9,046,159 23,116,822 1931 .. 229,468,022 8,943,480 124,998,825 49,009,109 13,917,187 9,467,697 23,131,724 1932 .. 154,192,510 6,891,352 71,082,074 43,161,299 7,474,867 5,344,100 20,238,818 1933 .. 166,269,410 5,410,390 76,192,513 47,997,700 8,160,873 6,346,942 22,160,992

1932. 1983. Feet b.m. Value. Feet b.m. ! Value. £ £ White-pine .. .. 22,225,905 198,811 19,548,114 181,100 Rimu .. .. 2,060,581 14,328 3,641,873 24,560 Kauri .. .. 724,714 17,241 410,875 10,658 Beech .. .. 1,474,986 15,208 1,375,374 12,709 Fruit-case timber .. 661,156 6,832 704,443 7,343 Other .. , 190,144 1,550 171,991 1,401 Total .. 27,337,486 253,970 25,852,670 237,771

1929. 1930. 1931. 1932. 1933. * t I ; | (1,000 ft.) (1,000 ft.) (1,000ft.) (1,000ft.) Cedar ....!.. 637 52 7 2 Oregon .. .. .. 12,807 2,950 1,081 1,354 Hemlock . . . . 6,142 662 Redwood.. .. .. 9,345 1,028 291 461 Butter-box shooks.. .. 4,691 2,879 1,473 1,815 Cheese-crate shooks ; .. 1,774 732 175 5 Total .. ( .. 35,396 8,303 3,027 3,637

H,— 44

THE FISHING INDUSTRY. The uneconomic conditions that were prevalent in this industry during 1932-33 were still apparent during 1933-34, but some change for the better has taken place. So long as the price of meat remains low the domestic demand for fish will be effected, and although the export of fish largely increased during the year, the prices remained at such a low level that those engaged in the industry find it very difficult to carry on. The production of " wet " fish during recent years has been as follows : —•

One of the most important events in this industry during the year was the re-opening of the Chatham Islands fishery by the trawler " South Sea." This vessel arrived from England and started operations early in 1933. As it was found that the bottom at the Chathams is unsuitable for trawling the vessel gets her catch by line-fishing, giving employment to a number of men at these islands who had not been able to fish for the market for some time previously. This vessel is equipped with refrigeration, so that the catch is landed in very good condition, much of it going on to Australia. The Chatham Islands cod has an excellent reputation for quality and size. It is gratifying to record a large improvement in the quantity of fish exported, the gains have principally been made in the Australian trade, but there was also a large increase in canned oysters and those coming under the heading of " Preserved, other kinds " to the United Kingdom as follows :—

Frozen Crayfish-tails. This industry, which started in a very modest way during 1932 owing to the initiative of one or two Dunedin fish-merchants, developed rapidly and gave every indication of attaining some importance. Shipments, which at first were confined to Dunedin, extended to Bluff, Lyttelton, and Auckland, and for the year ending 31st March, 1934, amounted to 2,728 cwt., valued at £9,288. The market is London, but, unfortunately, the trade received a setback during the year owing to the accumulation of stocks from South Africa, New Zealand, and Australia, and shipments had to be stopped for several months. The imposition of a quota on the imports of frozen crayfish and canned crayfish into France operating from 28th January, 1934, has had the effect of further seriously curtailing this trade. Whilst the great bulk of our exports are shipped to London, a very large percentage were reshipped to France, and most of this trade has been lost for the present, at any rate. Belgium and Germany also took considerable quantities, but the duties in these countries have been raised so much that it is now almost impossible to do business. EGG-EXPORT INDUSTRY. The Poultry-runs Registration Act of 1933 will allow for closer co-operation between poultrykeepers in the Dominion for the better control of the industry and for better organized marketing both locally and overseas. Under the provisions of this Act a New Zealand Poultry Board has been set up consisting of two Government and four producers' representatives, who will look to the best interests of the industry as a whole. The Department has at all times been in close touch with the industry during the past year and reports upon overseas market prospects, which have been regularly received, have been passed on to the egg-exporting interests in the Dominion, to the Poultry Board, and to the New Zealand Poultry Association. At the request of the Department, the High Commissioner has submitted very complete and comprehensive reports upon the prospects of developing our market in the United Kingdom. Exports of eggs to the United Kingdom show a steady increase during the past four years, the figures being — Doz. £ 1930 .. .. .. .. .. .. 24,240 1,344 1931 .. .. .. .. .. .. 111,480 5,646 1932 .. .. .. .. .. •• 160,212 7,574 1933 .. .. .. .. •• •• 325,975 15,784

16

Quantity. Value. Cwt. £ 1930-31 .. .. .. 369,346 406,675 1931-32 .. .. .. 318,956 311,199 1932-33 .. .. .. 287,979 290,016 1933-34 .. .. .. 313,319 283,107

i 1930-31. 1931-32. 1932-33. , 1933-34. I ' I I Frozen fish .. .. Cwt. 17,678 14,098 19,584 34,738 Fish, smoked, dried .. Cwt. 1,128 638 521 1,243 Potted or preserved in tins — Oysters .. ..lb. 15,079 69,497 51,620 128,028 Other kinds .. ..lb. 87,063 112,138 103,186 j 384,282

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Under the provisions of the New Zealand - Canadian Trade Treaty shelled eggs are admitted into Canada free of duty during December, January, and February in any one year, but, so far the United Kingdom market has been the more attractive for the export quantity available. Through the Irade Commissioner in Toronto, however, the Department is continuing to watch the position closely on behalf of the industry, and it is hoped that the coming season will see at least some small shipments going forward to Canada to take advantage of the concession granted us under the Trade Treaty. PHORMIUM TENAX. Owing to the severe depression that has continued in all sections of the fibre trade, many men are engaged in studying ways and means by which our national asset of Phormiun tenax may be utilized other than in the production of fibre suitable for use in the manufacture of cordage and twine. Engineers' Waste. —Several experimenters have succeeded in producing a commodity from tow and stripper slips that is to a small extent taking the place of cotton waste for cleaning machinery. The product as yet leaves much to be desired, but has been found suitable for use m some kinds of heavy machinery, and may in time take the place of the lower qualities of imported cotton waste. One experimenter has developed a process for producing engineers' waste direct from the green leaf, but it also requires considerable advancement in quality before it would be suitable for use on fine machinery. Kapok Substitute and Flock Substitute,—Other experimenters have been working along the lines of producing a substitute for kapok and flock from tow, and quite good results have been obtained. A considerable quantity of the kapok substitute has been produced and sold to mattress-makers. It is stated that the mixture of this commodity 50-50 with kapok provides a mattress filling of very good quality. inevita ] 3 i e t h at a n t h ese promising activities should be badly handicapped by want of capital and business experience. None of these new industrial outlets are yet on their feet, mainly for want of the necessary capital for development. New Zealand Woolpack and Textiles, Ltd. —The above company opened its factory for the production of woolpacks from Phormium tenax at Foxton on 9th March, 1934. This is said to represent an expenditure of £40,000, and that employment will be given to about eighty hands at the start of operations. The company claims that the new woolpack will prove stronger, lighter, cleaner, and cheaper than the jute pack, and that it will be free from loose fibres —the latter being one of the drawbacks of the jute pack. . It is hoped that this new industry will be entirely successful, and be followed by similar factories in different parts of the Dominion. . The Flaxqrowers' Pulp and Cellulose Products of New Zealand, Ltd.—This concern reorganized its capital during the year, and changed its name to New Zealand Pulping Mills, Ltd. No information is to hand in regard to any progress that may have been made towards producing cellulose pulp to comply with the requirements of the trade in the United Kingdom. Nelson Cellulose Company. —This concern was promoted towards the end of the year, and is said to have obtained an adequate flax property on the West Coast. Sufficient time has not elapsed to allow of any practical progress being made, and at the end of the year the erection of factory buildings, &c., had not been put in. hand. New Zealand Hemp and Jute Mills, Mataura.—At the end of the year a proposal was mooted m Dunedin to establish a mill at Mataura for the manufacture of woolpacks both from Phormiun tenax and jute, but further details have not as yet been ascertainable. TOBACCO INDUSTRY. Steady progress is being made in the growing of tobacco leaf in the Dominion, which is all utilized in local manufacture. The following figures show the progress made Number of Yield. Year. Acres. lb. 1930-31 .. •• •• •• •• 932 722,329 1931-32 •• •• •• •• •• 1j726 1,318,624 1932-33 .. .. •• •• ..2,126 1,784,676 The bulk of the leaf is produced in the Nelson District, but Auckland-grown leaf is steadily improving in quality, and is being used to a greater extent by the two tobacco manufacturing concerns located in Auckland. The two old-established tobacco manufacturing companies in the Dominion are understood to still draw the whole of their requirements of New Zealand leaf from the Nelson District, where high average quality leaf is available in large quantities. The plantation companies in the Auckland District are as yet unable to obtain an export market for their leaf, so that production must of necessity be limited to the quantity that can be absorbed by local manufacturers. Both the tobacco manufacturing concerns in Auckland have experienced improved trading conditions during the year. The larger concern has been able to settle some of its internal difficulties by reorganization, and its outlook for the future seems much brighter. These companies are purchasing large quantities of Dominion-grown leaf, and are also using an increasing percentage of leaf grown in the Auckland Province. The smaller concern has made rapid progress the year, and has experienced a good demand for its various brands of tobacco. The financial position of this company has been so stabilized that the directors have recommended the payment of a dividend of 15 per cent, for the year ending 31st March, 1934.

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PASSION-FRUIT INDUSTRY. Considerable progress has been made by the above industry during the year, although discouraging results were experienced with the juice that had been put up in lacquered cans during the previous season. Much of this proved unsaleable owing to the chemical action of the juice eating through the lacquer and acting on the tin coating inside the can. The prospects ahead of the industry are now, however, quite promising, due largelv to a new company Pashons Products, Ltd.—that was registered at Christchurch on 15th January, 1934. lhis concern has signed up a large number of the growers at Kerikeri for five years, in order to secure the supply of large quantities of passion fruit. It leased the factory building at Kerikeri, and carried out its undertaking both to purchase and pay for the whole of the passion fruit supplied by the contracting growers this season. The juice is being shipped to London in 1-gallon glass jars, which are very expensive, and also in 10-gallon casks. It is understood that the first shipment of the juice to reach London m the glass jars turned out in good order, but no report has yet been received in regard to the condition of the juice that was shipped in the casks. Passion-fruit juice is being prepared in several ways by some of the best-known firms in the beverage trade in England, and seems to be establishing itself in the public favour. It is being used as an ingredient in a cocktail, as a cordial, as squash, dry, and as natural juice. TUNG-OIL INDUSTRY. The continued financial depression is making it difficult for the plantation companies engaged m this industry to sell their bonds and debentures by means of which the planting of their estates are financed. Ihere are only a few trees in the North Auckland district that have reached four years of age, and some of these have produced several nuts this season. Here and there a three-year-old tree has also borne a few nuts. Generally speaking, the maximum age of these plantations is three years and the majority have not been planted out more than two years. These plantations are spread over a wide range of country, with varying soil characteristics and where shelter has been provided and good cultural treatment given several of the plantations show satisfactory growth. It is, of course, too soon to say what the result will be, as the tree does not usually bear a commercial crop of nuts until its fifth year. The total area planted to tung trees is increasing as follows Number of Acres 1931-32 .. .. in Tung Trees. 1932-33 ;; ;; 2 ; 659 The following is a list of the tung-oil plantation companies in the Dominion : N.Z. Tung Oil Corporation, Ltd., plantation at Kaikohe. Tung Oil Plantations (N.Z.), Ltd., plantation at Kaihu. Northern Tung Oil, Ltd., plantation at Kaingaroa. Parenga (N.Z.) Tung Oil, Ltd., plantation at Parengarenga. Natural Products (N.Z.), Ltd., plantation at Mangawai. Tung Oil Debenture Trust, Ltd., plantation at Warkworth. Tung Oil Securities (N.Z.), Ltd., plantation of Matauri Bay. Australasian Plantations, Ltd., plantation at Kan Kan Peninsula. Empire Tung Oil Products, Ltd., plantation at Bay of Islands. INDUSTRIAL RABBITS. Angora Rabbit Wool. The production of this wool in the Dominion interests a large number of small holders, and the Department continues to receive inquiries from persons who contemplate entering the 'industry Ihe number of rabbit-breeders is steadily increasing, but the Department does not advise any one to take it up with a view to making it their sole means of support. It is an activity that fits in well with market gardening, as the large quantities of waste vegetable matter are economically used in feeding the rabbits. It is not desirable for any one to enter the industry who cannot produce most or all of the food-requirements of the animals on the property. Practical experience has shown that rabbits can be kept solely on green food and hay without any outlay for bought grains or cereal offals. The market for Angora rabbit wool is in the United Kingdom, and a change in requirements has been experienced during the last two seasons. The very fine type of wool is not now in such good demand, but the coarse kind, usually associated with the French breed of rabbit, is called for This wool is worth from 9s. to 18s. per-lb. according to grade, and several firms in the' Dominion are orien to purchase it around these prices for cash. Fur Rabbits. This branch of the industry has made more progress during the past year both by the increase in the number of fur-farmers and the steady improvement in the quality of their stock New foundation stock was received from England less than two years ago, by special permission of the Hon. the Minister of Agriculture, and breeders have by selective mating been able to produce the following new types : Blue-rex, Ermine-rex, Lilac-rex, Black-rex, and Havana-rex.

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During the year the New Zealand Fur Farmers' Association was formed in Christehurch for the development of this interesting branch of the industry. Production of pelts in commercial quantities is not yet assured, but it is stated that a few lines have been disposed of at 6s. each. A recent quotation received from England showed that superior Castor-rex and Sable-rex pelts were worth 7s. 6d. each. THE CITRUS INDUSTRY. By Order in Council dated 15th December, 1932, the importation of all fruit and vegetables (other than dried, canned, pickled, pulped, or bottled fruit and vegetables) grown or produced in the Commonwealth of Australia was prohibited, save with the consent of the Minister of Customs. This prohibition was lifted in August, 1933, to allow South Australian oranges to enter the Dominion, the first shipment arriving on 26th August, and further importations were allowed in up to the 31st December, 1933. Since the coming into force of these regulations a much improved local market has been obtained for New Zealand lemons, which has encouraged the growers to improve the curing and get up of this fruit for the market. New Zealand Grapefruit. By instructions of the Hon. the Minister of Industries and Commerce, a survey of this industry was carried out during the year. This fruit is little known to the public and is very low in price compared with the imported article. It is hoped that by improving the grading and packing of the fruit and organizing the marketing on better lines a much improved demand will be obtained and that in time the local fruit will entirely replace the imported grapefruit. This tree seems to be the hardiest of all the citrus family in New Zealand, and it has been successfully established over a considerable part of the North Island, more especially in the Auckland Province, and on a great variety of soils, where aspect and shelter were favourable and a reasonable amount of manure and cultural attention given. With the development of the industry New Zealand grapefruit should fill a much more important place in the dietary of the people. GAS REGULATIONS. The Board of Trade (Gas) Regulations, which are administered by the Department, provide safeguards in respect to heating, value, purity, pressure, measurement, and price. Nineteen gas undertakings in the Dominion come within the scope of the regulations. The work of the Gas Examiners and Inspectors of Meters has been carried out efficiently during the year, and official relations with the gas companies and municipal undertakings have, without exception, continued to remain most satisfactory. COMMERCIAL TRUSTS ACT. For some years past there has been persistent agitation for some action to be taken to protect the tobacco trade against price-cutting. After careful representations made by all sections of the trade, and more particularly by the retail tobacconists, it was decided by the Government to remove tobacco, cigars, and cigarettes from the operations of the Commercial Trusts Act. During the year a number of complaints were made to the Department that the Commercial Trusts Act, 1910 (as amended by section 12 of the Cost of Living Act, 1915), were being infringed, and in each case these complaints were followed by full investigation by the Department into the nature and circumstances of the alleged breaches. CHATTELS TRANSFER ACT, 1924. Section 57 of the Chattels Transfer Act, 1924, provides for the protection of bailors of such chattels as are referred to in the Seventh Schedule to the Act without the necessity for registration of the agreements concerned, and, furthermore, it is provided in the Act that Orders in Council may be issued to extend the Seventh Schedule by the addition of further classes of chattels recognized as being the subject of '' customary hire-purchase agreements." The Department has charge of the administration of this section of the Act, and whenever applications are received for the extension of the Schedule to include further classes of chattels thorough investigations are made by the district officers in each of the four centres of the Dominion as to the customary trade practices adopted in the disposal of these chattels and as to the desirability or otherwise of adding the names of such articles to the Schedule. During the past year applications were received in respect to the following classes of chattels : Electric hair-cutting machines, hair-drying machines, hair-waving machines and accessories, pedal bicycles, certain additional law-books and law reports. To the list of law-books and law reports already included in the Schedule were added the " Public Acts of New Zealand (Reprint) " and " Halsbury's Statutes of England," and provision has been made for the inclusion of any subsequent editions or reprints of any of the books and reports now specified in the Schedule. In respect to other applications, the evidence obtained as to the methods of disposal was not considered sufficient to warrant their addition to the Schedule. TRADING-COUPONS. An Act was passed in 1931 prohibiting the redemption of trading-coupons otherwise than for cash, or, to use the words of the Act, " coupons if redeemed shall be redeemed unconditionally and only for money." In the last annual report of the Department reference was made as to whether or not the

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right to enter a competition conferred by the issuer of trading-coupons on the holders thereof constituted redemption within the meaning of the Act. The legal position in this connection has now been made clear by a Wellington Magistrate's decision in a case in which the holders of coupons (obtained in the purchase of a certain brand of tooth-paste and vanishing cream) were given the right to enter a slogan competition, and, although the prizes offered were in cash, the Magistrate held the view that " the defendant company had given by way of redemption not money but the chance of winning a prize consisting of money." He further stated, " I think that by giving in return for the coupon a right to take part in the competition and the chance of winning a prize the defendants have redeemed the coupons, and that as such redemption was not for money a breach of the statute has been committed." Another action was taken under this Act against a country store exchanging for coupons to the value of ss. and Id. in cash certain goods which were greatly below the usual selling-price of such goods. Redemption not being unconditionally and only for money, a conviction was recorded. A further scheme which involved some legal argument arose in connection with the redemption of coupons for cash or, as an alternative, the owner was given the opportunity of directing that the redeemable cash value of the coupons be utilized in the purchase of a glass-cloth. The Magistrate held that in those cases where the owners of the coupons directed that glass-cloths be purchased with the cash value of the coupons the coupons had been redeemed otherwise than for money, and a conviction had to be recorded. MOTION-PICTURE INDUSTRY. Representations by picture-theatre proprietors have been made at various times during the past few years to the Government regarding the alleged unfair and unreasonable conditions imposed by the film exchanges in film-hiring contracts. Petitions were also presented to the House of Representatives during the last session of 1933 on similar lines and urging an inquiry to be made into the industry. A further matter which is considered important by some exhibitors is the clause in the contract, requiring the exhibitor to charge not less than Is. for admission. In this connection a Bill, sponsored by a private member of the House of Representatives, was introduced last session seeking statutory power to over-ride any restriction regarding admission charges imposed in film-hiring contracts. The Bill was referred to the Industries and Commerce Committee of the House for consideration and report. This Committee, after hearing evidence, made the following recommendations: — " That in the opinion of the Committee an exhaustive inquiry into the film industry in all its bearings should be undertaken at the earliest possible date. " That in view of the amount of evidence offering and the limited time at the disposal of the Committee it is impossible to undertake such inquiry during the present session. " The Committee therefore recommends such inquiry be made by the Government, and, pending same, that the Hire of Films Bill be not allowed to proceed this session." Taking all these circumstances into consideration the Government felt justified in appointing a Committee empowered with an order of reference that would cover a wide field of inquiry. A Committee of ten members of Parliament representing all parties in the House of Representatives, with Mr. A. Harris, M.P., as Chairman, was selected to undertake the inquiry and submit the results of its deliberations and recommendations to the Right Hon. the Prime Minister. The Committee sat on twenty-one days hearing evidence and drafting their report. A total of twenty-seven witnesses appeared before the Committee, seventeen representing exhibiting interests, representatives of six Film Exchanges, and four other interests. In addition, the Committee had placed before it a considerable volume of written evidence. The findings of the Committee and recommendations, have been made the subject of a special report, and copies may be obtained by those interested. A biief summary of the recommendations is as follows " That it be made a condition of the issue of a renter's license under the Cinematograph Films Act, 1928, that the licensee shall use for his business only such standard form of contract as may be approved by the Minister, such approval to be given in any case for a period of not more than two years. " That no film-renting contract shall be approved by the Minister which provides for a higher minimum charge than 6d. for admission to a picture-theatre, except under certain conditions, and that before approval of any contract-form by the Minister consideration shall be given to a report of the Advisory Committee under the Cinematograph Films Act, 1928, with respect to such contract-form. " That section 39 of the Cinematograph Films Act, 1928, and section 50 of the Finance Act, 1930, be repealed, and that in lieu thereof statutory provision be made for a right of rejection by the exhibitor of 25 per cent, of all films ' block booked,' a ' block' to be defined as not less than four films, which are the subject-matter of one or more contracts between a renter and an exhibitor, entered into at the same time, or in respect of films acquired by the renter in any year or film-renting season, with the proviso that such statutory right of rejection shall be included in and not be additional to any rights of rejection provided in the written terms of the contract or contracts. " That statutory provision be made for the prevention of monopoly of film-supplies. " That provision be made for the control of the issue of licenses for picture-theatres, subject to recommendations. " That the Cinematograph Films Act, 1928, be amended to permit of the exhibition by film societies of films which have not been approved by the Censor, subject to certain conditions. " That the technical details of legislation recommended in this report be submitted to an Advisory Committee appointed under section 41 of the Cinematograph Films Act, 1928, for consideration and report to the Minister."

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In regard to provision for the control of the issue of licenses for picture-theatres, the Committee stated that, while it was doubtful whether the position may not have got out of control, it recommended that in the amending legislation proposed in its report there should be included provision to enable the Government to impose control of licensing of theatres should it be found that conditions existing at any time rendered this advisable. It further recommended that this provision in addition to specifying the conditions set out in the Board of Trade (Cinematograph Films) Regulations should also provide (a) For the exercise of the control on the basis adopted under the Board of Trade (C inematograph Film) regulations : (b) For reasonable protection to be accorded both owners and lessees of theatres in areas where licenses are refused : (c) That the licensing authority should have the power to require a licensee, in any situation where a license has been refused, to maintain reasonable conditions in the public interest, particularly with respect to the class of film exhibited and the prices of admission . (d) That the decision with respect to the issue of the license should be made by a Magistrate, assisted by an assessor representing the applicant, and one representing the interests opposing the application, and that on refusal of a license a fresh application should not be considered within one year : (e) That the costs of the deciding authority should in the case of a successful application be borne by the applicant, and in the case of an unsuccessful one, be equally divided between the applicant and the owners of existing theatres in the area. MOTOR-SPIRITS (REGULATION OF PRICES) ACT. This Act was passed during the last session of Parliament of 1933, and provides for the fixation, by Order in Council, of the minimum and maximum wholesale and retail prices of motor-spirit. The oiaject in making provision to fix the minimum prices is to prevent unfair competition which may arise in the importation and distribution of motor-spirit. ... . Since the passing of this Act applications have been made by retail distributors for the authority given in the Act to be exercised in regard to the fixation of a minimum resellmg-price. There is evidence, however, that the industry is not conducted as economically as it might be, and the Government must give the closest consideration to any request to fix the minimum price in respect of the products of an industry which in some directions is conducted on uneconomic lines. The Government has a responsibility to the public, who are the consumers, in seeing that they are not compelled to pay a price in excess of the necessities of the position. The circumstances at the present time do not warrant action being taken. COMPANY-PROMOTION COMMISSION. The Department has for some years past perused a great number of prospectuses inviting capital, and it has been noticed that the raising of capital by the sale of bonds and so-called security certificates has become a marked feature of flotations in recent years. The provisions of the Companies Act do not extend to this class of investor the same protection as that provided for the investor in share capital. In view of the financial inter-locking of associated companies which has been a feature of company promotion in recent years, it was felt that the only effective means of dealing with the matter was the appointment of a Royal Commission entrusted with wide powers to make a comprehensive inquiry. . The Department in collaboration with other Government Departments drew attention to the unsatisfactory conditions existing and as the result of specific recommendations to the Government a Commission under the Commissions of Inquiry Act was set up in January last to inquire into and report upon tendencies and developments apparent in the Dominion in relation to the promotion, financial methods, control and operations of certain companies and other corporations which seek to raise capital and loan funds in the Dominion. The personnel of the Commission is Mr. J. S. Barton, S.M., (Chairman), Professor H. Belshaw, and Mr. H. E. Graham. IRON AND STEEL WORKS. A New Zealand company—Pacific Steel, Ltd.—has been negotiating with the Onakaka Iron and Steel Co., Ltd., with a view to extending the operations of the industry to include a steelworks. Arrangements have been made with an English firm of consulting engineers to report on the prospects. Two experts are at present in New Zealand. CANADIAN NATIONAL EXHIBITION. The New Zealand Government participated in the exhibition held in Toronto in August, 1932, and was awarded a gold medal for the excellence of the display of New Zealand products. The general manager of the exhibition commenting on the display stated : " This interesting and educational exhibit was the cause of much favourable comment from the general public who always look forward to the displays in the Government building." In view of economic conditions in 1933 it was not considered advisable to stage an exhibit. The next exhibition is being held from the 24th August to Bth September, 1934, and eighteen cases of exhibits have been forwarded from New Zealand to be displayed in the New Zealand Government Court. These exhibits comprise a comprehensive range of New Zealand products. A considerable quantity of advertising matter featuring the tourist resorts of New Zealand has also been included.

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INDUSTRIAL AND COMMERCIAL BULLETINS. During the past year the Department has continued the issue of bulletins containing information on industrial and commercial subjects. As is customary, these bulletins have been widely distributed to the press, Chambers of Commerce, Manufacturers' Associations, prominent business executives, overseas trade representatives, and other persons and firms to whom they are likely to be of interest and value. The issues made during the period under review were as follow :— Bulletins Nos. 24, 25, 26, and 28 : Summary of the Finance, Trade, and Industries of New Zealand for the quarter and year ended 30th June,. 1933 ; 30th September, 1933 ;• 31st December, 1933; and 31st March, 1934, respectively. Bulletin No. 27 was a special issue relating to trade with the British West Indies, and was compiled from the report of the New Zealand Trade Commissioner in Canada upon his recent official visit to that territory. MISCELLANEOUS ACTIVITIES. The activities of the Department are so varied and so diversified that it is impossible to make references to them all in a report of this nature. Moreover, many of the commercial and industrial investigations carried out by the Department are of a confidential nature, and for this reason cannot be referred to in reports for publication. In general, it may be said that the Department has been called upon to an ever-increasing extent during the past few years to supply general information relating to the Dominion's industries, commerce, and economic and social conditions, and particular information relating to specified industries. This information pertains particularly to the development of markets for our products both within New Zealand and overseas, and it may be said that the functions of the Department in this connection have been substantially extended in recent, years, and that the importance and value of its activities in this direction to the commercial community have been materially enhanced. The following list of a few of the inquiries made by the Department during the past year may provide some indication of the extensive variety of subjects with which the officers of the Department are constantly required to deal: — Markets for kauri-gum, dairy-produce, canned fruits, honey, chamois-leather, wool, sausage-casings, cattle-hides, meatmeal, builders' materials, cocoa-beans, rag stock, scrap metals in Canada and the United States ; Phormium fibre, sausage-casings, tallow, timber, fish on the Continent of Europe; fish, lard, certain leathers in the United Kingdom ; mineral waters, feathers, Stilton cheese, ammunition in Australia ; butter and cheese, milk-powders, apples in Egypt; casein in Palestine ; dairy-produce, meats, canned rabbits and game, fish, wool in India ; dairy-produce and general provisions in the British West Indies ; wool to Brazil; canned meats, condensed milk, butter and cheese, casein, woollen noils to the East, &c., Price and cost investigation of various commodities sold in the Dominion, including tobacco and cigarettes, coal, lime, superphosphates, petrol, bread, gas, woollen goods, &c. CONCLUSION. It is desired to place on record the Department's appreciation of the co-operation and assistance given by the various Trade Commissioners, Consuls, and Vice-Consuls of various overseas countries resident in New Zealand and, in particular, to acknowledge its indebtedness to His Majesty's Trade Commissioner and the Canadian Trade Commissioner. Acknowledgment must also be made of the assistance given by other Government Departments during the year, particularly by the Customs Department, the Department of Scientific and Industrial Research, and the Department of Agriculture. In conclusion, it is gratifying to note that there are many indications definitely pointing to our further emergence from the adverse economic conditions which have enveloped us during the past four years. The far-reaching effects of the depression have clearly demonstrated that New Zealand has placed too much reliance upon a few main classes of exportable commodities, and it was only natural that increasing attention should have been given to the question of exporting a wider variety and to the exploitation of new and undeveloped markets. In this connection the Department is active in its endeavours to open the way for an increase in the export volume of a more diversified range of our products and for the extension of present overseas markets. While there is still a measure of uncertainty and obscurity in the world economic position and the consumptive demand for all classes of commodities continues to remain at a relatively low level, it is becoming more apparent as time goes on that there must soon come about the formulation of a definite policy by the leading nations of the world in respect of the trend of economic nationalism, and it is to be hoped that a policy will be adopted that will open the way to a greater flow in the volume and value of international trade. Commodity prices generally show a steady upward trend, an improvement which, if sustained, will soon rid us of the fear of a relapse to the conditions from which we are emerging and will quickly form a sound foundation for the building-up of that confidence which had been so badly shaken during the period of falling and contracting markets. The marked improvement apparent in the economic progress of the majority of those countries in which our principal markets are found is being reflected in our own progress along the road to the •attainment of more prosperous conditions.

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APPENDIX.

MANUFACTURING INDUSTRIES. Fruit-preserving and Jam-making. Official statistics, year ended 31st 1931. 1932. 1933. Establishments (number) .. . . 10 11 11 Employers (number) . . .. 352 441 388 Wages paid .. .. .. £63,128 £59,074 £55,312 Value of output .. .. .. £330,522 £305,808 £277,866 Value added by manufacture .. £135,762 £121,228 £111,807 Imports, calendar years — Jams and preserves (including preserved £ £ £ ginger) .. .. .. 10,411 7,681 6,497 Fruits, bottled and preserved in syrup — Apricots .. .. .. 16,384 13,576 7,159 Peaches .. .. .. 43,535 26,974 15,246 Pears.. .. .. .. 1,330 650 195 Fruit pulp n.e.i. .. .. 1,907 1,836 3,759 Total ... .. £73,567 £50,717 £32,856 Factories in the north report a slight increase in one or two lines included in the above statistics, and trade generally has improved to warrant an increase in factory staff. One company in the south reports conditions to be improving and records an increase in the export trade. The export trade of 1933 in canned fruits shows a remarkable increase when compared with the two previous years. The figures are shown hereunder : — Produce of New Zealand. £ 1931 .. .. .. .. .. .. .. 81 1932 .. .. .. .. .. .. .. 331 1933 .. .. .. ... .. .. .. 9,455 In the latter year exports to the United Kingdom accounted for £9,328 of the total. It is worthy of note that £60 of New Zealand canned fruits were exported in 1933 to British West Indies. Records for past ten years do not show any previous shipments to this territory. Lime and Cement. Official statistics, year ended 31st March— 1931. 1932. 1933. Establishments (number) .... 40 43 45 Employees (number) .. . . 912 794 688 Wages paid .. .. .. £205,414 £164,665 £134,842 Value of output .. .. .. £878,732 £601,849 £483,840 Value added by manufacture .. £693,766 £474,821 £381,912 Imports, calendar years : — Cement, building (cwt.) .. .. 7,508 4,968 3,981 Value .. £2,936 £2,267 £1,864 The decline in building operations is directly responsible for the decreased output. A. revival of the building trade which is now evident in main centres provides an optimistic outlook for the industry for the ensuing year. Engineering. Official statistics, year ended 31st March — 1931. 1932. 1933. Establishments (number) .. .. 200 198 188 Employees (number) .. .. 3,455 2,691 2,329 Wages paid £725,690 £513,554 £414,409 Value of output .. .. .. £1,692,214 £1,161,974 £974,490 Value added by manufacture .. £1,115,380 £748,246 £623,079 Constructional engineers report generally a further decline in trade for the past twelve months. The noticeable increase in building activity recently has resulted in orders for substantia] quantities of structional steel, with consequent benefit to the industry. In other branches of engineering some slight improvement is recorded by a number of companies. Sauce, Pickle, and Vinegar Making. Official statistics, year ended 31st March— 1931. 1932. 1933. Establishments (number) .... 22 20 20 Employees (number) .. .. 234 224 210 Wages paid .. .. .. £45,270 £39,386 £38,086 Value of output .. .. .. £203,741 £187,334 £177,861 Value added by manufacture .. £116,610 £112,255 £103,104 Imports, calendar years : — Pickles (gallons) .. .. .. 1,244 405 708 Value £747 £295 £500 Sauce and chutney (gallons) .. 10,046 5,964 6,040 Value £11,273 £6,504 £6,452 Vinegar (gallons) .. .. .. 16,225 20,411 20,379 Value £4,186 £5,364 £5,522 Reports for current year show a decided improvement in this industry, and the prospects of increased trade are considered bright.

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Soap and Candle Making. Official statistics, year ended 31st March— 1931. 1932. 1933. Establishments (number) .. .. 22 21 23 Employees (number) .. .. 438 422 470 Wages paid .. .. .. £96,919 £86,611 £86,570 Value of output .. .. .. £478,896 £444,270 £467,393 Value added by manufacture .. £251,990 £259,120 £251,257 The statistics above show a slight improvement on the 1931-32 figures. Local competition for bar-soap trade continues to be a feature of present conditions. Manufacturers, however, express an optimistic note regarding the prospects for the ensuing year. Coach and Motor-body Building and Cycle-worlcs. Official statistics, year ended 31st March— 1931. 1932. 1933. Establishments (number) . . . . 1,098 1,049 1,042 Employees (number) .. .. 6,354 5,090 4,560 Wages paid .. .. .. £1,202,942 £895,782 £731,296 Value of output .. .. .. £2,652,608 £2,016,683 £1,895,253 Value added by manufacture .. £1,788,841 £1,298,870 £1,101,961 Reports for current year indicate generally a continuance of depressed conditions. Biscuits and Confectionery Malting. Official statistics, year ended 31st March— 1931. 1932. 1933. Establishments (number) .... 60 57 58 Employees (number) .. .. 2,716 2,523 2,512 Wages paid .. .. .. £367,944 £315,664 £313,210 Value of output .. .. .. £1,596,660 £1,327,013 £1,246,733 Value added by manufacture .. £842,829 £718,561 £654,443 Reports for current year received from biscuit-manufacturers do not disclose any appreciable variation in the position of last year. The turnover in confectionery has been substantially improved, and increase in staff in a few factories is reported. Furniture and Cabinet Making. Official statistics, year ended 31st March — 1931. 1932. 1933. Establishments (number) .. .. 335 308 299 Employees (number) .. .. 2,378 1,779 1,584 Wages paid .. .. .. £451,376 £285,649 £236,860 Value of output .. .. .. £1,156,512 £726,795 £611,019 Value added by manufacture .. £649,708 £417,727 £348,980 Manufacturers in the north report an improvement in sales, and staffs have been kept fairly constantly employed. Recently there has been a demand for higher-grade furniture, but competition for business keeps prices at levels which allow of only small margins. Ham and Bacon Factories. Official statistics, year ended 31st March— 1931. 1932. 1933. Establishments (number) .... 41 39 40 Employees (number) .. .. 380 384 398 Wages paid .. .. .. £92,692 £87,088 £87,675 Value of output .. .. .. £949,597 £761,121 £702,442 Value added by manufacture .. £325,536 £266,798 £275,572 Cost of materials used .. .. £624,061 £494,323 £426,870 The 1933 figures show a slight improvement over those of 1932, the value " added by manufacture " increasing by £8,774. The prospects for the ensuing year are reported to be encouraging. Bricks, Pipes, Tiles, and Pottery Making. Official statistics, year ended 31st March — 1931. 1932. 1933. Establishments (number) . . . . 61 50 44 Employees (number) .. .. 946 563 405 Wages paid .. .. .. £213,895 £102,694 £74,167 Value of output .. .. .. £564,489 £253,356 £180,785 Value added by manufacture .. £537,775 £233,969 £168,548 The continued slackness in the building trade is reflected in the above figures. The reports, however, for the current year are distinctly brighter. The brickyards in the North Island report an increase in output, but the position is still unsatisfactory when compared with former years. The operation of the subsidy granted by the Unemployment Board stimulated building to some extent during the period it was in force.

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Flax-milling. Official statistics, year ended 31st March — 1931. 1932. 1933. Establishments (number) . . .. 22 17 20 Employees (number) .. .. 177 135 213 Wages paid .. .. .. £26,223 £13,198 £27,349 Value of output .. .. . • £47,722 £33,878 £54,658 Value added by manufacture .. £39,417 £24,399 £38,591 Rope and Twine Making. Official statistics, year ended 31st March — 1931. 1932. 1933. Establishments (number) .... 6 6 5 Employees (number) .. .. 225 205 214 Wages paid .. .. .. £38,296 £35,304 £34,684 Value of output .. .. .. £160,401 £121,732 £144,502 Value added by manufacture .. £75,841 £64,831 £72,654 Substantial improvement is shown by the above statistics for the flaxmilling industry when compared with the two previous years. Exports also show an increase of 552 tons, secured, however, at lower prices, the total amount received being approximately the same as last year with a lower tonnage. Export statisticsYear. Tons. £ 1927 .. .. •• •• 19,600 535,526 1928 .. •• ■• 15,683 394,450 1929 14,720 379,942 1930 .. .. • ■ •• 9,493 221,923 1931 .. .. .. •• 2,398 38,407 1932 .. •• •• •• 3,850 47,312 1933 4,402 47,632 s, Eope and twT££ ma king statistics show an improvement, and indications point to an increased turnover for the ensuing y"ēāir~~~f}lothing. Official statistics, year ended 31st March— 19§k 1932. 1933 - Establishments (number) .. 244 244 Employees (number) .. .. 7,690 7,155 7,616 Wages rtaid •• £916,045 £784,668 £807,206 Value oi output .. .. £2,597,928 £2,153,461. _ £2,400,599 Value added by manufacture .. £1, 278, 801 £1,109,276 £1,188, Imports, calendar years — Apparel and ready - made SiHI £1,161,962 £8«,030 £763,76, A distinct improvement in number of employees, amount of wages paid, and value of output is a pleasing feature of the statistics for the 1932-33 period A number of factories report improving conditions during the past year, with an increase m number of employees. Agricultural and Dairy Machinery and Implement. Making. Official statistics, year ended 31st, March— 1931. 1932 ' 1933 "37 Establishments (number) .. .. 32 32 Employees (number) .. . • 850 ®05 Wages mid . •• £179,137 £97,761 £97,094 Value oi output .. .. »74,721 £280,751 £329,«6 Value added by manufacture £301,722 £147,967 £7 , A decided improvement in this industry is shown by the 1933 figures when compared with the previous years. Manufacturers report an increased demand for agricultural implements following increase in price of wool. The trade in spare parts has been a, feature of trading conditions, farmers retaining old machines instead of purchasing new ones, which are urgently required m many cases. Woollen-manufacturing. Official statistics, year ended 31st March— 1931. 1932 ' in Establishments (number) . . . • 10 JO Employees (number) .. .. 2,237 2,216 2,349 Wases t)aid ■ £328,826 £300,399 £316,352 ?B output ',: ~ ~ £896,677 £802,105 £888,6« Value added by manufacture .. £571,926 £541,044 , The figures for 1932-33 show an all-round increase. The number of employees increased by 133, wages paid by £15,953, and value of output by £86,441. As the period under review was one of lowpriced wool and woollen products, the quantity of woollen goods produced was substantially m excess of the quantity produced in 1931-32 to provide the increase m total value.

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The following table shows the imports of materials which compete with the products of New Zealand woollen-mills: —

Printing and Publishing. Official statistics, year ended 31st March — 1931. 1932. 1933. Establishments (number).. .. 358 355 362 Employees (number) .. .. 8,192 7,610 7,453 Wages paid .. .. .. £1,805,620 £1,573,670 £1,447,735 Value of output .. ..£4,509,786 £3,772,323 £3,473,987 Value added by manufacture .. £3,339,487 £2,791,803 £2,540,824 The reports for current year show that, while turnovers have increased, keen competition and price cutting have made business unpayable, due in a large measure to the smaller units in the indust" being able with low overheads to tender for work which cannot be met by the larger concerns T w ith higher fixed charges. Brush and Broom Making. Official statistics, year ended 31st March — 1931, 1932. 1933 Establishments (number) .. . . 15 15 13 Employees (number) .. .. 223 209 . — 219 Wages paid .. .. .. £42,415 £31,291 £33,987 Value of output .. .. .. £11Q, 107 £102,219 £97,470 Value added by manufacture .. £66,479 £57 168 £54 981 Imports, calendar years — /. Brushes, brushware, and brooms .. £38,623 £25,409 £26,074 improving. One company in the South Island proposes rebuilding its factory to provide more up-to-date production facilities.

Approximate Cost of Paper.—Preparation, not given ; printing (1,215 copies), £34, 10s.

Authority: G. H. Lonbt, Government Printer, Wellington.—-1934.

Price 9d.]

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Piece-goods. 1930. j 1931, 1932. j 1933. £ £ £ £ Artificial and pure silk .. .. 1,020,019 610,191 677,419 587,207 Woollen .. .. .. .. 622,256 401,513 425,175 428,982 Cotton and linen .. .. .. 1,734,653 1,073,157 1,246,024 1,174,092 Totals .. .. .. 3,376,928 2,084,861 2,348,618 2,190,281