REPORT OF THE NATIONAL SERVICE DEPARTMENT ON ACTIVITIES UNDER THE NATIONAL SERVICE EMERGENCY REGULATIONS 1940, AND THE INDUSTRIAL MAN-POWER EMERGENCY REGULATIONS 1944

Appendix to the Journals of the House of Representatives, 1945 Session I, H-11a

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1945 NEW ZEALAND

REPORT OF THE NATIONAL SERVICE DEPARTMENT ON ACTIVITIES UNDER THE NATIONAL SERVICE EMERGENCY REGULATIONS 1940, AND THE INDUSTRIAL MAN-POWER EMERGENCY REGULATIONS 1944

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

National Service Department, Wellington, 30th May, 1945. The Hon. the Minister of National Service. Sir, — I have the honour to submit the following report on the activities of the National Service Department during the twelve months ended. 31st March, 1945. I have, &c., H. L. Bockett, Director of National Service and Controller of Man-power.

CONTENTS PAGE INTRODUCTION 3 PART I—THE GENERAL DEVELOPMENT AND ADMINISTRATION OF NATIONAL SERVICE PAGE PAGE SECTION I.—HISTORICAL DEVELOPMENTS, JULY, 1940, SECTION lII.—ADMINISTRATION— to march, 1944— (i) Administrative Developments .. .. 10 (i) National Service Organizations .. 3 (ij) staff employed .. .. .. 11 (ii) Developing Man-power Problems .. 6 (iii) Appreciation .. .. .. .. 12 (iii) Policy Trends and Results .. 6 SECTION IV.—FINANCE AND EXPENDITURESECTION ii.—main currents of policy, April, 1944, (i) Administration Expenses .. .. .. 12 to march, 1945— (ii) War Expenses Account .. .. .. 12 (i) The Maintenance of New Zealand's Overseas (iii) Promotion of Employment .. 13 Contribution .. .. 8 (ii) The Intensification of the Industrial War Effort and the Return of the Pacific (3rd) Division 8 section v. the policy and organizational out(iii) The Middle East (2nd) Division Replacement look— Scheme .. .. •. .. 9 (i) Abolition of Controls .. .. .. 13 (iv) The Industrial Absorption of Ex-servicemen .. 9 (ii) Plans for Full Employment .. .. 15 (v) Relaxation of Man-power Control .. .. 10 (iii) The Post-war Employment Service .. 16

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CONTENTS —continued PART lI.—MILITARY MOBILIZATION PAGE PAGE SECTION I. —STRENGTHS AND CASUALTIES OF THE SECTION V.—ACTIVITIES OF ARMED FORCES APPEAL FORCES — BOARDS —continued (i) Total Strengths .. .. 17 (iii) Category "A " and Grade I 20-year-old Men (ii) New Zealand and Overseas Strengths .. 17 and under at present held under Appeal .. 22 (iii) Comparative Strengths of the Service Arms .. 17 (iv) Reservation of Scientific, Professional, and (iv) New Zealand's War Casualties .. 18 Technical Workers and Students .. .. 22 SECTION 11. MAN-POWER CALLED UP AND MEDICAL SECTION VI. — CONSCIENTIOUS OBJECTORS AND THE (i) Total Persons called up and examined .. 18 23 (SjSKKiSr"' :: :: :: JS <"> "•«»'"«.ww.. ..23 SECTION 111. NET MAN-POWER INTAKE OF THE FORCES - SECTION VII.—THE DETENTION OF DEFAULTERS AND THE (i) Cumulative Intake of all Arms .. .. 19 establishment of revision authorities— (ii) Comparative Intakes of all Arms .. .. 19 (i) Sources and Numbers of Defaulters .. .. 23 (ii) The Management of Defaulters .. 24 section iv. -man-power withdrawn from the forces— (iii) The Cost of maintaining Defaulters .. 24 (i) Cumulative Total of Appeal Board and Man- (i V ) Establishment of Revision Authorities .. 24 power Officer Releases .. .. 20 (ii) Rehabilitation Releases ■ ■ " f 20 section viii.—the woman's war service auxiliary— (111) Landmarks in the Wholesale Withdrawal of (jj strength of Auxiliary and Distribution of MemPersonnel from the Forces .. ..20 w be = s J ..27 section v.—activities of armed forces appeal F i elds ol Contribution .. .. .. 27 boards— (i) Activities, August, 1940, to March, 1944 .. 21 section ix—control of departures from new (ii) Activities during 1944-45 .. .. .. 21 Zealand -28 PART lII.—INDUSTRIAL MOBILIZATION PAGE PAGE SECTION I.—CHANGES IN THE TOTAL LABOUR FORCE— . SECTION X.—THE INDUSTRIAL CONTRIBUTION OF THE (i) The Pre-war Labour Force.. .. ..28 Maori people - 40 (ii) Wartime Changes in Total Labour Force .. 28 (iii) The Future Working Population .. ..29 section xi—seasonal labour— (1) 19..59- 44 . . .. .. .. ..40 SECTION lI.—THE DEMAND FOR LABOUR— (il) 1944 45 . . . . . . . . . . 41 (i) Pre-war Labour Shortages .. .. ..29 (ii) Wartime Shortages .. .. ..29 section xii. rehabilitation of workers uprooted BY DIRECTION .. .. .41 SECTION lII—WARTIME CONTROL MEASURES— (i) Declarations of Essentiality .. .. 31 section xiii. absenteeism from industry— (ii) Registration for and Direction to Work of (i) Incidfince and Extent of Absenteeism .. 41 National Importance .. .. .. 31 (jj) Absenteeism Control Results .. .. 42 (iii) Restrictions on Engagement of Labour .. 31 (iv) Industrial Absenteeism Control .. .. 32 section xiv. miscellaneous measures— (v) Industrial Appeal Machinery .. .. 32 (i) Accommodation of War Workers .. .. 42 (ii) Financial Assistance to Directed Workers .. 42 section iv. —the redistribution of labour BETWEEN INDUSTRIES AND DISTRICTS— SECTIONXV. THE EMPLOYMENT POSITION AND OUTLOOK (i) Estimated Industrial Distribution ot the Total jn some key industries Labour Force .. .. .. ..32 (i) Farming .. .. .. ..42 (ii) Estimated Geographical Distribution of the (ii) Bushfelling and Sawmilling .. .. 46 Total Labour Force .. .. .. 33 (iii) Coal-mining .. .. .. .. 46 (iii) Direction Results .. . .33 (iv) Building and Construction .. ..47 (iv) Approved Terminations from Essential Industries 34 (v) Transport and Communications .. ..47 (v) Unapproved Applications to engage and ter- (vi) Clothing-manufacturing .. .. .. 48 minate .. .. .. .. 34 (vii> Woollen-manufacturing .. .. .. 49 (vi) Appeals against the Decisions of Man-power (viii) Dairy Factories .. .. .. .. 49 Officers .. .. .. ..35 (ix) Public and Mental Hospitals and Sanatoria .. 50 SECTION V.-WOMEN IN INDUSTRY- /vi! ManUfaCtUrln S " " « (i) Before the War .. .. .. 35 ■.!' Engineering .. .. .. .. 51 (ii) Wartime Industrialization of Women .. 35 (xii) Hotels and Restaurants .. .. "no (iii) The Industrial Future of Women .. .. 36 x !") Meat-freezing .. .. .. • • 52 v ' (xiv) Essential Services .. .. .. 53 section vi.—the women's land service .. -37 (xv) Food Processing and Canning 54 SECTION VII.—EMPLOYMENT OF JUVENILES— SECTION XVI. THE REGIONAL EMPLOYMENT POSITION (i) Liaison with Vocational Guidance Centres .. 37 and outlook (ii) Placement, &c., Results .. .. .. 37 (i) Some General Observations .. .. 54 (ii) Northern North Island .. .. .. 55 section VIII.—THE return and direction of third (iii) Southern North Island .. .. .. 56 etc., PERSONNEL (iv) Northern South Island .. .. ..57 i Machinery of the 'Necal" Scheme .. ..38 ( V Southern South Island 58 (n) Industrial Disposal of Necal Personnel .. 39 West Coast o{ the South Island 58 SECTION IX. EMPLOYMENT OF EX-SERVICEMEN-(i) Liaison with Rehabilitation Department .. 39 s promotion measures- employment(ii) Administrative and Policy Developments of the (ij xh e incidence and Extent of Unemployment.. 58 Future .. .. .. .. 39 (ii) Employment Promotion Schemes .. .. 59 STATISTICAL APPENDIX .. 60-89 SPECIAL ADDENDUM : NATIONAL SERVICE DEVELOPMENTS FROM 31st MARCH TO 15th AUGUST, 1945 90

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INTRODUCTION 1. The 1945 annual report of the Department records all activities in the field of national service during the year ended 31st March, 1945 —the fifth year of the Department's existence and the sixth year of war. 2. By the end of the year under review there could no longer be- doubt that the complete defeat of Germany and her satellites was a matter of a very few months at most. [Note. -VE day was declared on the Bth of May and the final defeat, of Germany celebrated.'] Germany's overthrow brings much nearer that of Japan and is a striking earnest of the collective war effort of the United Nations. Therefore this year's report of the Department is more than an account of its military and industrial mobilization activities. In addition, it is in a sense an appreciation of the part which New Zealand man-power has played in the war, from its outset to its fast approaching culmination. 3. For this reason the 1945 report briefly summarizes the developing man-power phases, problems, and measures which were dealt with at length in the Department's 1943 report. It brings these up to date, and adds to them a detailed account of policy developments, difficulties, and achievements during the twelve months ended 31st March, 1945. 4. As stressed in earlier reports, activities in the field of national service are best dealt with as a whole, although particular treatment of the two natural subdivisions of military mobilization and industrial mobilization is helpful. 5. Accordingly, this report is divided into three Parts. The first of these deals in a general way with man-power policy, organizational provisions, and the results achieved during the five years of the Department's existence. First the historical background of the Department's activities from its establishment in July, 1940, to the 31st March, 1944, is summarized. This implies a synopsis of the detailed material presented in previous reports. Next the main currents of man-power policy during the twelve months reviewed, and their outcome, are dealt with in general terms. Then follows a Section on the several aspects covering the field of administration and departmental expenditure. The concluding Section of this Part of the report covers the outlook for man-power policy and organization. 6. The general treatment contained in Part I is followed in Part II by a detailed review of the various activities and difficulties recorded in the particular field of military mobilization. Reference to the table of contents will disclose the component Sections into which this Part of the report divides. 7. Similarly, Part 111 is devoted to a detailed treatment of developments in the particular field of industrial mobilization. Here again the table of contents reveals the break-up of the subjectmatter. 8. In both Parts II and 111 of the report the practice of giving progressive information from the outset of departmental activity to the 31st March of the current year has been followed. The information brought forward from previous reports has necessarily been of a skeleton nature. It is considered that this approach should be helpful to those who, reading this report, desire to link its contents with the background of military and industrial mobilization. 9. The full Appendix contains charts and tables which provide statistical elaboration of the subjectmatter of Parts I to 111. PART L —THE GENERAL DEVELOPMENT AND ADMINISTRATION OF NATIONAL SERVICE SECTION I.- HISTORICAL BACKGROUND, JULY, 1940, TO MARCH, 1944 (i) Organization 10. (a) Establishment and Development of the National Service Department.—When war was declared in September, 1939, the readiness with which volunteers entered the Service Arms and the comparative abundance of industrial labour made unnecessary any immediate national service measures. By mid-1940, however, it was evident that compulsory military service would have to be resorted to if New Zealand was to play the part in the war which it was the Government's desire should be played. Accordingly, the National Service Emergency Regulations of 18th June, 1940, were gazetted. These authorized the compulsory mobilization of New Zealand's military man-power resources, vesting this function in a Minister of National Service and a Director of National Service. The National Service Department came into existence during the succeeding month. 11. Even before the outbreak of war, some study had been made of the probable utilization of man-power during war, and a schedule of important (or reserved) occupations was worked out by a departmental Man-power Committee. In addition, a special branch of the Social Security Department (the Registration Branch) was set up to assemble population statistics likely to be helpful during a mobilization. 12. The National Service Department incorporated the Head Office and twenty-two district offices of the Employment Division of the Labour Department and the Registration Branch of the Social Security Department. The latter provided the nucleus of the Military Mobilization Division (at that time called the " Man-power Division "), while the former continued as the Employment Division until the gazetting in January, 1942, of amendments to the National Service Emergency Regulations making provision for control over industrial man-power. With the gazetting of these regulations

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(subsequently re-gazetted as the Industrial Man-power Emergency Regulations 1942), the Employment Division was strengthened and converted to the Industrial Man-power Division, and the voluntary State Placement Service was replaced by the authoritative man-power control organization of to-day. 13. With the addition of two district offices, the departmental organization has remained substantially the same since the introduction of industrial man-power control in January, 1942. The streamlining of civil defence and Home Guard activities early in 1944 and the transfer of administrative functions in these fields to the, Army in the first case and the Internal Affairs Department in the second, however, permitted a closer integration of departmental procedure until the two clear-cut Military and Industrial Mobilization Divisions remained. This development was aided by the establishment of the Rehabilitation Department in November, 1943, and the assumption by it of all of the functions hitherto performed by the Rehabilitation Subdivision of the Industrial Mobilization Division of the Department. 14. (b) Armed Forces Appeal Boards. —Before the establishment of the Department, volunteers were screened by the Placement Officers of the Employment Division, Labour Department, and on their recommendations Area Officers postponed the call-up of some 3,000 men, mainly farm, engineering, and factory workers. 15. Later —i.e., in September, 1940 —this rough-and-ready method was improved by the appointment of sixteen (later increased to seventeen) District Advisory Man-power Committees which took over the responsibility hitherto discharged by Placement Officers singly. These seventeen District Advisory Man-power Committees were limited in jurisdiction to appeals against the overseas service of volunteers and to all appeals against Territorial service. 16. Deriving authority from the National Service Emergency Regulations 1940, six itinerant statutory Armed Forces Appeal Boards were created towards the end of that year for the particular purpose of dealing with appeals against overseas service—i.e., of persons other than volunteers as well as volunteers, subsequently including those of conscientious objectors. These were augmented by an additional three auxiliary Boards which were found necessary to cope with the growing volume of work. Although working in close co-operation with the Department, the Armed Forces Appeal Boards at that stage maintained separate offices and files. 17. By Amendment No. 12 to the National Service Emergency Regulations (June, ! 942), the distinction between Territorial and overseas service was removed, and accordingly the existing Manpower Committees and Armed Forces Appeal Boards were merged, with power to deal with all appeals other than those of conscientious objectors, which from this stage were dealt with by the six Boards already mentioned and the three auxiliary Boards. In consequence of this merger the Appeal Boards then numbered twenty-six, and in August, 1942, they were reduced in number to twenty-two. In July, 1943, as a result of a decline in the number of appeals to be heard, it was found possible to reduce the number of Appeal Boards to nineteen. This process was carried further in February, 1944, when the number of Appeal Boards was reduced to sixteen, while at the same time the office staffs and files were incorporated with those of the District Man-power Officer, The responsibility for hearing appeals of conscientious objectors remained with the nine Appeal Boards which had throughout dealt, with these appeals. 18. (c) Industrial Man-power Appeal Committees. -With the introduction of the Industrial mobilization procedure in January, 1942, it became necessary to constitute authorities to deal with the appeals of workers and/or employers arising out of decisions of District Man-power Officers. Consideration was given to the suggestion that this work might well be performed by existing Armed Forces Appeal Boards or, as they were termed at that time " District Advisory Man-power Committees." The extreme pressure under which these bodies were working at the time, and the desirability of establishing authorities specially equipped to deal with the industrial as distinct from the military aspect, decided the Government against the proposal. It was decided, instead, to establish Industrial Manpower Appeal Committees, each of which would be composed of a representative of employer and employee interests as well as a Government Chairman. Four Industrial Man-power Appeal Committees were established, one in each of the four main centres, and empowered to deal with all appeals arising out of the decisions of Man-power Officers in their zone. For the purpose of zoning, each Island was halved. During 1942 the volume of work of Industrial Man-power Appeal Committees grew appreciably, and in 1943 the development was so considerable that it was found necessary to establish a second Committee for the Wellington zone. Accordingly, five Industrial Man-power Appeal Committees were then operating. 19. (d) Industrial Utilization Councils and Committees. —The necessity for the co-operation of workers' and employers' organizations, as well as that of workers and employers individually, in the administration of the Industrial Man-power Regulations rendered desirable the establishment of advisory bodies which could advise the Department in such a way as to secure the most effective utilization of labour. The experience of similar Joint Committees in Great Britain and elsewhere provided the model, and shortly after the introduction of the industrial mobilization procedure in January, 1942, a number of advisory bodies, known as Utilization Councils and Committees, were established. For each industry concerned there were both a National Council and a number of local Committees. The function of the National Council was to advise, the Government on all questions affecting the most economic utilization of labour in the industry as a whole. Local Committees tributary to the National Council and consisting of workers' and employers' representatives, members of other Government Departments, and the District Man-power Officer as Chairman undertook the function of advising the Man-power Officer and the Armed Forces Appeal Board on all questions affecting the most economic local utilization of labour. Utilization Councils and Committees were established as the need arose in some twenty-six industries. Table 20 of the Appendix lists the local Committees attached to the various Utilization Councils as at 31st March, 1945. 20. (e) Auxiliary Military Organizations.—Following the gazetting of the Emergency Reserve Corps Regulations in August, 1940, three auxiliary war organizations were created, and the responsibility for their recruitment and co-ordination was made the Department's. These organizations were the Home Guard, the Emergency Precautions Service, and the Women's War Service

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Auxiliary. To them the Emergency Fire Service was added as part of the Emergency Reserve Corps in February, 1941. Enrolment in these organizations was voluntary until the gazetting of the Emergency Reserve Corps Enrolment Order in January, 1942. This regulation, which was rendered necessary by the threat of Japanese invasion and the wastage from the Home Guard and the E.P.S as a result of the call-up of fit men for service with the Forces overseas as well as with Territorial units, obliged all male British subjects between the ages of eighteen and sixty-five to enrol in the Corps. 21. (i) The Home Guard. From its inception in August, 1940, until April, 1941, during which period it was organized on a voluntary basis by local bodies co-operating with the Department, the Home Guard reached a membership of over 100,000. An amendment to the National Service Emergency Regulations in the form of the Home Guard Enrolment Order No. 1, dated 30th April, 1942, required all men aged thirty-five to fifty inclusive to re-enrol in the Emergency Reserve Corps. Arising from this re-enrolment, some 31,000 of the 70,000-odd men who had enrolled for Home Guard service were inducted. The strength of the Guard after this accretion stood at the satisfactory level of 100,000 (September, 1942). This figure was substantially maintained until the dissolution of the Guard in 1944. Although the great bulk of Guard members was employed in industry, training and parades indirectly constituted a drain on industrial man-hours, while the provisioning and equipping of the Guard placed an additional burden on war industries. 22. (ii) The E.P.S. (Emergency Precautions Scheme) and the Civil Defence Sub-organizations.— Earthquake and flood visitations before the war had prompted a number of local bodies to improvise emergency measures of varying degrees of completeness. The foundation of the wartime E.P.S. was really laid a few months before the outbreak of war when the Internal Affairs Department, following consultation with the principal local authorities, issued handbooks under the title " Emergency Precautions Scheme," the first covering urban and the second rural localities. 23. Provision was made for the establishment of a Central Committee and a number of subcommittees specializing in particular fields, in some cases under the direction of a Dominion Controller. Particular fields affected were — Supply. Works. Transport. Fire. Medical. Accommodation and Evacuation. Law and Order. Finance. Communications. Publicity. 24. Following the gazetting of the Emergency Precautions Regulations in August, 1940, the Emergency Precautions Scheme was legally authorized and the responsibility for the overall initiation and co-ordination of the scheme was placed with the Minister of National Service. 25. Failing adequate voluntary personnel for the various branches of the E.P.S., compulsory enrolment in the Emergency Reserve Corps of all male British subjects aged eighteen to sixty-five who were not already serving in the Armed Forces or the Home Guard was directed by the Emergency Reserve Corps Enrolment Order of January, 1942. 23. The personnel problem of the E.P.S. was overcome by this measure, and the full-scale organization of civil defence measures (described at length in the Department's 1943 annual report) was quickly developed. 27. The grave danger of fire during war operations had evoked early in 1941 the establishment of the Emergency Fire Service as a separate branch of the Emergency Reserve Corps, but co-operating with the Fire Section of the E.P.S. A logical division of work between established fire brigades, Emergency Fire Service units, and the smaller fire patrols of the E.P.S. was adopted. 28. By the end of 1942 the Japanese drive southward had been halted and a streamlining of the entire civil defence organization took place. This continued until early in 1944, when the E.P.S. resumed its pre-war character —viz., that of an organization designed to safeguard against catastrophes unrelated to warfare. As from Ist April, 194-4, the Internal Affairs Department resumed the administration of the E.P.S. 29. (iii) Women's War Service Auxiliary.—ln July, 1940, the National Service Department convened a conference of delegates from women's organizations throughout the Dominion to co-ordinate the efforts of women assisting the war effort. From this conference there emerged the Women's War Service Auxiliary. It was with the co-operation of this organization that the National Service Department was able to initiate and administer many plans relating to the service and welfare of women in the Armed Forces and industry. 30. The Women's War Service Auxiliary itself contained voluntary workers of many types who were 011 call for a wide range of duties in an emergency. The improvement in the war situation from the beginning of 1943 considerably reduced the functions of the organization. It continued to act, though to a lesser degree, in an advisory and administrative capacity in conjunction with the National Service Department in matters relating to the service of women. It has also continued its activity regarding the welfare of all Armed Forces' personnel and in connection with war loans and the collection of clothing for war-devastated countries. The organization is represented on Food Committees and Rehabilitation Committees. 31. (/) Defaulters' Detention Camps.—Recourse to compulsory military service following the establishment of the Department in 1940 almost immediately posed the problem of how to deal -with the cases of conscientious objectors. Provision was made per medium of the Armed Forces Appeal Boards to deal with the cases of appellants against service on the grounds of conscientious objection, and it was recognized from the outset that a number of these appeals would be upheld. However, it was equally clear that a number of men whose appeal would be unsuccessful might still refuse service, while still others would adamantly refuse service without preferring any appeal. To meet such cases defaulters' detention camps came into existence, the first camp—Whenuaroa—being established 011 Crown land at Strathmore early in 1941. As the number of defaulters grew, further camps were established at Shannon, Hautu, Balmoral, Oio, Puketapu, Matanuku, Maramarua, Riverhead, Galatea, and Conical Hill. These camps have been directly administered by the National Service Department, special staff having been recruited as patrolmen and supervisors.

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(ii) Developing Man-power Problems 32. From September, 1939, until Japan declared war in December, 1941, the demands upon the country's man-power resources were not only self-evident, but also relatively simple to meet. The strategic emergency created by the fall of France in 1940 called for every possible assistance in actual combat zones. Although New Zealand had sent 86,000 men overseas by November, 1941, the withdrawal of this labour from industry did not entail a fall in production, which, instead, in" nonluxury lines was actually increased. This was achieved by the absorption of the small number of unemployed, the substitution of women for men, the dilution of labour,. longer hours of work, the curtailment of non-essential production and services, and an all-round increase in individual effort. 33. The outbreak of war with Japan brought an immediate change in the situation. The need for home defence became of paramount importance, and mobilization proceeded accordingly. However, the rapid withdrawal of a further 45,000 persons from industry in four months (December, 1941, to March, 1942) created a serious problem for the industrial war effort. 34. From the middle of 1942 industrial man-power difficulties became more complicated. The key problem was to effect the best possible adjustment between the requirements of the Armed Forces and industry. On the one hand, events overseas had accentuated the demand for production. New Zealand was so conveniently situated in relation to the Pacific war zone, and enjoyed such a production potential, that it was pre-eminently suitable as a supply base for this zone. Moreover, agreements had been made with the United Kingdom in regard to supplies, and these had to be respected. On the other hand, while there was a need for troops in the Pacific zone, the Middle East Division was in need of reinforcements, and the Air Force and Navy of further recruits. It was with this series of intricate issues that the Government had to contend. 35. Early in 1943 when the threat of Japanese invasion had receded, a considerable reduction in home-defence Forces became practicable. Reinforcements were then sent to the Third Division in the Pacific and to Air Force and naval establishments overseas. The withdrawal of these man-power resources from industry was now complete —for, while stationed on home defence, these men had been available for seasonal demands in industry. Despite the steady reduction in home-defence Forces throughout 1943, the conflicting overseas demands for reinforcements and supplies remained insistent. The Second Division had been in action several times, and this had exacted a heavy toll in casualties. Air Force casualties were also heavy. Despite this, the need for production remained urgent. By the end of 1943 the food requirements of the United Kingdom, then preparing for invasion of the Continent, were extraordinarily high. 36. Military mobilization and industrial reorganization have throughout involved a complex reshuffling of man-power as between the Armed Forces and various industries. This has often had to be effected rapidly, yet always with a minimum of arbitrariness. Moreover, the Government has had to establish the degree of priority to be accorded each particular industry. Demands, both from domestic and overseas sources, have constantly fluctuated, so that degrees of industrial priority have had to be revised and man-power resources transferred accordingly. (iii) Policy Trends and Results 37. As the developing war situation presented the various problems discussed in the previous Subsection, appropriate policy measures were applied. Basically there were three main policy trends corresponding to the three phases plainly distinguishable in the development of the war from its outset until the end of March, 1944. 38. The first phase—i.e., September, 1939, to December, 1941, when Japan struck southwards— saw the policy measures estimated best to gear the nation to an overall war effort against an enemy for the most part pursuing aggression in theatres far removed from New Zealand. In addition to the organizational measures introduced during this period, the following national service measures were implemented : — (a) The raising and reinforcement of an overseas Army Division. (The strength of Army personnel overseas at the end of 1941 was 44,000.) (b) The raising of a considerable part-time Territorial Force. (At the end of 1941 there were 35,000 in the Territorial Force in New Zealand, while other home Forces totalled 26,000.) (c) The raising of a continually increasing Air Force for service both overseas and in New Zealand. (At December, 1941, the strength of the R.N.Z.A.F. in New Zealand was over 10,000 including 1,000 W.A.A.F.s, while overseas there were over 5,000. In addition, there were about 2,700 New Zealand personnel with the li.A.F.) (d) The raising of a small but steadily growing naval Force 'for service both in New Zealand and overseas. (The strength of the R.N.Z.N. increased from 1,300 at the outbreak of war to 3,000 in May, 1940, and to 4,900 in December, 1941.) (e) The raising and maintenance of the auxiliary war organizations referred to in Subsection (i) of this Section —e.g., Home Guard, Emergency Precautions Service, Women's War Service Auxiliary, &c. (At the end of 1941 the strength of the Home Guard was 94,000, the National Military Reserve 8,000, and the Emergency Reserve Corps 88,000.) (/) The staffing, per medium of the voluntary State Placement Service, of the important war industries—e.g., footwear, farming, engineering, tanneries, food-manufacturing, &c.

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39. The basic trend during the second phase —i.e., December, 1941, to November, 1942, often called the year of Japanese threat —was in the direction of all-out domestic, military, and industrial mobilization to defend New Zealand itself. The main measures which marked this phase were— (а) Mobilization on a full-time basis of a considerable part of the Territorial Force and the National Military Reserve, and the removal of distinction between Territorial and other service. (The peak mobilization of persons was achieved in September, 1942, and, excluding casualties, totalled 154,000 males and 3,000 females, or 170,000 if the 13,000 casualties then recorded are added. Of these, 127,000 were in the Army, 24,000 in the Air Force, and 6,000 in the Navy.) (б) The wholesale mobilization of members of the First and Second Division of the General Reserve —i.e., single and married men of military age. (Army male personnel in New Zealand at December, 1942, aged over eighteen years totalled 35,000 Grade I and 18,000 Grade II.) (c) The introduction of compulsory civil defence service and the expansion of component services to the strength of 150,000 by the end of 1942. (There were also some 115,000 enrolled in the Home Guard at this time.) (d) The recruitment of women to the auxiliary wings of the three Service arms —viz., Women's Auxiliary Army Corps, Women's Auxiliary Air Force, and Women's Royal Navy Service. (At the end of 1942 the strength of the three women's Services were as follows : W.A.A.G., 3,000 ; W.A.A.F., 3,000 ; W.R.N.S., 200.) (e) The compulsory industrial mobilization of civilians under the industrial-mobilization procedure empowered by regulation in January, 1942. (By the end of 1942, 17,000 directions into essential work had been given to males and. 3,000 to females.) (f) The development of the Women's War Service Auxiliary to the point (November, 1942) when enrolments totalled 75,000. 40. Tims by September of 1942 the military mobilization had been carried so far that 157,000 persons were serving in the Forces either in New Zealand or overseas, while a further 250,000 men and women were serving part-time in the Home Guard, Emergency Precautions Service, and other auxiliary services. 41. This huge deflection of man-power from industry by itself created serious man-power shortages in the basic industries. These were greatly accentuated by the enormous programme of defence construction, both for New Zealand and Allied troops, that was so spectacular an aspect of the industrial scene in 1942. 42. Despite the degree of preparedness achieved by September of that year, there was scant ground for optimism in the face of invasion, while demands for additional man-power as reinforcements for the Division'overseas and as recruits to the rapidly expanding Air Force were daily growing more clamant. Although much had been achieved by the policy initiatives launched in the year of Japanese threat, the overall man-power position remained most serious. 43. The third period —that between November, 1942, and March, 1944 —could be called the period of maximum overseas contribution, for during it this was the basic policy. This period was opened by the crucial reverses of Japan on Guadalcanal and of Germany and Italy at El Alamein. With the immediate Japanese threat now removed, the chief developments which served the main policy trend were—(a) The continued reinforcement of the Army Division in the Middle East, and the despatch to the Pacific of a Second Division of 11,000 officers and men in November, 1942, the strength ultimately increasing to 18,000 during 1943. (b) Survey of personnel followed by drastic contraction of home-defence units, the Home Guard, Emergency Precautions Service, and other auxiliary war organizations. (Early in 1944 the Home Guard was disbanded, while most of the functions of the civil defence were transferred to the Internal Affairs Department as from the beginning of April, 1944.) (c) The continued expansion of the Air Force and, to a lesser extent, the Navy. (By March, 1944, the strength of the Air Force had increased to 41,000, including 3,500 females, while that of the Navy had increased to 9,400, including 500 females.) (d) The direction to essential industry of the man-power released from the Forces. (Note.^—From home-defence units alone more than 18,000 men tvere made available to industry from March, 1943, to March, 1944, while the full-time members of the Home Guard and the National Military Reserve for the most part also returned to industry.) (e) Postponement of further service of youths under twenty-one who had been mobilized but who were anxious to lay the foundations of their career. (f) The intensified administration of the Industrial Man-power Regulations in the service of maximum industrial output of munitions, food and clothing, and of the continually expanding defence construction programme. 44. In results, the third phase yielded a substantial diversion of man-power from the domestic scene to overseas theatres of war, while it also greatly augmented New Zealand's industrial contribution to the allied war effort. The policy objective of maximum overseas contribution was thus splendidly realized, as the part played by the New Zealand Forces in various theatres of war shows.

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SECTION 11. MAIN CURRENTS OF POLICY, APRIL, 1944, TO MARCH, 1945 (i) The Maintenance of New Zealand's Overseas Contribution 45. Although by April of 1944 it had been decided to recall the bulk of the 3rd (Pacific) Division, this implied no change in the basic policy of maintaining the maximum overseas man-power contribution. It but recognized three inescapable facts. The first of these was that it would be impossible to maintain both the Middle East and Pacific Divisions together with Navy and Air Force establishments by calling up fit men reaching military age and by combing out Category " A " men held in industry under appeal. The second was that the Pacific Division was for the most part engaged in non-combatant service which was not likely to give way to continuous active service for the whole division, while the Middle East Division was playing a vital part in the Middle East campaign. The third and final fact was that the production of foodstuffs and other supplies for Great Britain and for the Allied Forces in the south-west Pacific area was becoming increasingly important. 46. These three facts thus provided the environment in which the policy of maintaining the overseas contribution had to be pursued. The return of the bulk of the 3rd Division and the direction of its personnel to the high-priority vacancies in essential industry was thus a phase in the policy of reinforcing the Middle East Division and building up the Air Force in the Pacific. 47. Had matters rested there, this policy would not have been very difficult to pursue, but just as industry was starting to gain from the influx of 3rd Division personnel, the introduction of the Middle East (2nd) Division replacement scheme threw a new strain on. the man-power resources of the Dominion. This is dealt with in some detail in a following Subsection. 48. Replacement of these men was necessary if the Division was to continue in action, and, since the number of fit young men reaching military age was inadequate, it became necessary once again to draw off from industry large numbers of Category " A " men held under appeal, including members of the 3rd (Pacific) Division. 49. Maintenance of the Middle East Division and Air Force and naval establishments during the last twelve months has thus been achieved, but only with some difficulty and at the expense of industrial man-power, which has therefore had to be conserved all the more discriminately. Factors which have accentuated the difficulty have been the partial application of long-service release schemes to the Air Force and the Navy, and the impossibility of directly replacing combed-out Category " A " men with long-service repatriates from the Middle East Division. (ii) The Intensification of New Zealand's Industrial War Effort and the Return of the Pacific (3rd) Division 50. Even before 1944 the question was being raised whether New Zealand could continue to support her large overseas contribution and at the same time succeed with the production programme, which was considered by Great Britain and the United States to be of extreme importance. 51. Early in 1944 further consideration was given to the industrial problems, and the following aspects were revealed : — (a) Despite the importance of foodstuffs to the allied cause, butterfat production had fallen steadily since 1941, while in the 1943-44 season there was a decline in the output of meat from works. Man-power difficulties were a factor which had combined with pour seasonal conditions, in successive years, and the reduced supply of fertilizer, to bring about a decline in butterfat production since 1941. (Note. —The production of ivool and crops had actually been considerably increased, although some decline in crop production was anticipated for the 1944 season.) (b) The defence and other essential construction programmes for 1944 lagged, from the outset, and with the existing labour force alone there was no prospect of completing projects on schedule. (c) The engineering, footwear, woollen, clothing, and foodstuff manufacturing industries were also lagging in output and there was little hope of substantially increasing their production with the man-power available. (d) New Zealand was being urgently requested by Great Britain to expand her exports of foodstuffs, while the requirements of the American Forces in the Pacific were making increasing calls on food and other products. To this insatiable demand for foodstuffs was added the imminent necessity of still better equipping New Zealand to play a full part in the food relief of war-torn countries, which were even then on the verge of being freed from Germany. 52. As had been foreseen for some time, the stage was being reached when New Zealand could not at the same time meet the growing pressure on her industrial man-power and support the Army Division in the Middle East (at that time 35,000 strong), the Air Force in the Pacific and elsewhere (then totalling 13,000), the Navy in all theatres (then almost 10,000), and the 3rd Army Division in the Pacific (then numbering approximately 18,000 officers and men). Indeed, the maintenance of even the existing industrial output was incompatible with the maintenance of the overseas Forces, as reinforcements could only have been provided at the expense of the man-power in industry. 53. At this point the decision to repatriate the bulk of the 3rd (Pacific) Army Division for direction into essential industry was made. Between April and November of 1944, some 9,500 men who had volunteered for essential work were repatriated and directed thereto. The industrial disposal of these men is dealt with at some length in Section VIII of Part 111 of the report. 54. Contemporaneously with the return of the 3rd Division and the direction of its personnel to essential industry, the industrial mobilization procedure of the Department, in concert with the activities of Armed Forces Appeal Boards and Industrial Man-power Appeal Committees, was contributing substantially to improvement in the overall industrial position. This also is dealt with in detail in Section VIII of Part 111 of the report.

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55. In general, the combined effect of the return of 3rd Division personnel and the continued operation of control of man-power in industry was to go far towards equipping industry to discharge the additional responsibilities which had been placed on it. (iii) The Middle East (2nd) Division Replacement Scheme 56. In Subsection (i) of this Section mentioned was made of the 2nd Division replacement scheme as a complicating factor in the maintenance of the overseas man-power contribution. The replacement scheme, however, deserves more than passing reference as an incident in the despatch of men overseas. 57. When the Government decided in September, 1944, to offer repatriation to all men in the Middle East Division who had served overseas for three or more years, it recognized that the veterans of the Division, by their service in momentous campaigns under difficult conditions, had earned the right to repatriation and release to civil life. Thus the decision to repatriate those veterans who wished it was taken. Once taken, this decision and its consequences both in the military and industrial fields became the dominant feature of man-power policy, and this has continued to be so up till the present time. 58. In considering the relief of Middle East veterans the Government had three alternatives from which to choose. These were — (a) To retain in camp in New Zealand the nucleus of the Pacific Division (approximately 6,000 men) to be built up to a full division for service in the Pacific by the immediate withdrawal of the 2nd Division from the European theatre. (b) To continue to reinforce the 2nd (Middle East) Division, until the end of the war in Europe and then return to New Zealand all men who at that time would have completed three or more years' overseas service. (c) To continue to reinforce the 2nd Division until the end of the European war, but to introduce immediately a replacement scheme whereby men who had completed three years' service overseas would be returned to New Zealand and released to industry. 59. Of these alternatives, the last was chosen. It had the advantages that it would give relief to veterans and be possible of implementation given utilization of the nucleus of the Pacific Division for service in Italy and rigorous comb-out of Category " A " men held in industry under appeal. 60. From the military viewpoint alone the second alternative might have been that favoured, but it had the drawback that it offered no relief to long-service men of the 2nd Division until the end of the European war, an event which could not be forecasted with even approximate accuracy. 61. The first alternative had the serious disadvantages that it would involve the temporary idleness of the nucleus of the 3rd Division (6,000 men) and for a time would withdraw the Middle East Division from employment against either Germany or >Japan. 62. The implementation of the replacement scheme presented two obvious and interdependent aspects. The first of these was that arising out of the withdrawal of -men from the Middle East—their physical repatriation and subsequently their industrial absorption in New Zealand. The second aspect was that presented by the despatch overseas of replacement drafts drawn from the nucleus of the reduced 3rd (Pacific) Division —fit men attaining military age and Category "A" men hold under appeal in industry. This last source was expected to yield at least one-half of the men for the various replacement drafts. 63. Excluding some 3,000 men who were either coal-miners, ships' personnel, ministers of religion, or police, the number of Category " A " men held on appeal at November, 1944, totalled only 27,000. If the first replacement drafts were to be despatched on schedule, some 5,400 Category "A " men would require to be released to the Forces by April, 1945, and their positions in industry would require to be taken by other workers. As no considerable reserve of directable labour was available for this purpose, the jobs vacated by Category " A " men could only be filled if repatriated long-service men entered them, or indirectly enabled them to be filled by workers drawn from employment which the ex-servicemen had entered. Hence a condition of the repatriation of Middle East veterans was that Category " A " repatriates accept direction to essential industry in New Zealand, although it was understood that Man-power Officers in directing repatriates would, as far as possible, have regard to the long-term rehabilitation of the men and therefore to their personal wishes. 64. The first draft of repatriated long-service men, numbering 1,800, arrived in New Zealand in October, 1944, since when a further 8,000 have returned. As a result of a recent extension of the scheme —involving both Air Force and naval personnel —it is expected that the total number of ex-servicemen to return to New Zealand, other than as casualties, during 1945 will be in the neighbourhood of 27,000. 65. The first replacement draft of 1,762 was despatched overseas in October, 1944, since when three further drafts have been despatched to Europe. 66. Armed Forces Appeal Boards were required as from November, 1944, to undertake a thorough and rigorous review of the cases of all Category " A " men held under appeal in their district, and to this end release targets were set to guide the Boards. This review, still in progress, has been pursued successfully, and as at the end of March almost 5,000 Category " A " men had been released to the Forces as a result of Appeal Board action. Details of the industries and numbers of men affected are contained in Table 13 of the Appendix. (iv) The Industrial Absorption of Ex-servicemen 67. Until November, 1943 (when the Rehabilitation Department was created), the National Service Department was responsible for the placement of ex-servicemen as well as of civilians. Although theoretically liable to direction, ex-servicemen other than Category " A " men and reasonably fit homeservice men were placed without direction or permitted to engage in self-chosen positions, provided these were nationally justifiable. This procedure continued to be followed by arrangement with the Rehabilitation Department, which took over the placement of all ex-servicemen not subject to direction.

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68. The return of small essential industry drafts from Fiji and Tonga in 1943 and the wholesale return of 3rd Division (Pacific) volunteers for essential industry in 1944 made the Department responsible to a far greater degree for the industrial absorption of ex-servicemen. Direction practice was, as might be expected, pursued as far as possible in such a way as to assist the long-term rehabilitation of ex-servicemen as well as the immediate national interest. 69. Towards the end of 1944 discussions between the Rehabilitation and National Service Departments were commenced on the subject of the employment of ex-servicemen. These have resulted in an arrangement under which the National Service Department will resume the industrial placement of all fit ex-servicemen requiring assistance to find suitable work as from June, 1945. This development, combining with the trend towards relaxation of man-power controls, promises a reorganization of departmental procedure to enable it to perform the functions of a peacetime free Employment Service. (v) Relaxation of Man-power Control 70. It is not denied that wartime man-power control has been an unpalatable necessity. From the outset the Department has earnestly adhered to two canons of control—viz., to take no greater powers than were necessary ; and to relinquish the use of powers wherever and whenever their relinquishment was consistent with the overriding man-power policy. 71. A measure of the fidelity with which these canons have been observed is afforded by the single fact that of 169,000 directions issued to persons by man-power Officers only 4,900, or 2-9 per cent, have been appealed against, and of those appealed against, only 40-8 per cent, have been upset by Industrial Man-power Appeal Committees. 72. Considerable latitude has throughout also been accorded marginal workers, married women workers of indifferent health, and also returned ex-servicemen who were liable to direction. 73. With the European wai 1 obviously drawing to its close by March, 1945, careful preliminary consideration had already been given to the effects of a cessation of hostilities in Europe on the Dominion's man-power position. Attention was being given to three main aspects —the part of the National Service Department would be called upon to play in the placement of returning servicemen in suitable employment; the extent to which certain industries (particularly the production of food and those industries directly related to rehabilitation) would require continuing assistance ; and the stages by which it would be possible to relax wartime man-power controls while meeting the requirements of vital industries and maintaining the war effort in the Pacific. In addition, the Department was also giving attention to the long-range adjustments necessary to secure the durable resumption of normal employment conditions. (Note. —In June, 1945, the Minister of National Service announced the first classes of -workers from whom control was to be removed, and also expressed the Government's intention of abolishing man-poiver control generally at the earliest possible date. The Minister announced the release from control of (a) wives of returned ex-servicemen desiring to establish a home; (b) married women forty years of age or more; (c) young persons under eighteen years of age; and (d) the widows of deceased servicemen of the present war.) SECTION lII.—ADMINISTRATION (i) Administrative Developments 74. During the year it was found necessary to establish a District Man-power Office at Taumarunui to relieve the Hamilton and New Plymouth district offices of a portion of the considerable volume of work which had hitherto fallen to them.. 75. Towards the end of 1944 a streamlining of the Armed Forces Appeal Board organizations was undertaken, and the staffs for the most part were amalgamated with the staffs of the District Man-power Officers. This resulted in economizing of typing and clerical staffs, particularly in consideration of the falling-off in Appeal Board activity up to December of 1944. Thereafter the renewed Appeal Board activity in connection with the comb-out of Category " A " men held under appeal in essential industry again increased the pressure of Appeal Board work. 76. The establishment of the Rehabilitation Department iii November, 1943, and the transfer en bloc of the staff of the Rehabilitation Division of the National Service Department to the now Rehabilitation Department as from Ist April, 1944, involved the Staff Section of the National Service Department, Head Office, in considerable work, while the separation of rehabilitation from national service papers on personal files has been a protracted and heavy duty of the Records staff of the Department. In addition to this, the National Service Department has maintained close co-operation with the Rehabilitation Department and wherever possible has assisted it with typing, clerical, and investigatory services to enable it to develop its procedure. 77. In common with other Departments, the Department in February of this year launched the personnel-training scheme devised by the Public Service Commissioner. This is an extension of the scheme which was under consideration before the war, and will, it is hoped, provide a solution to the training and adjustment problems of ex-servicemen as well as junior civilian appointees.

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(ii) Staff employed 78. The following table analyses the male and female permanent and temporary staff of the Department as at the 31st March of the current year, and also gives details of resignations and appointments, &c., during the year ended 31st March. The break-up of the staff between various phases of departmental activity is also broadly indicated : —

Analysis of Staff as at 31st March, 1945 Staff employed as at 31st March, 1945

The above figures do not include men nominally on the staff strength, but serving in the Forces" Analysis of Detention Camp Staff as at 31st March, 1945 Number of patrolmen (all grades) .. .. .. .. 51 Number of overseers (all grades) .. . . . . .. 30 Number of supervisors and camp officers .. . . .. 30 Number of nursing staff .. .. .. .. .. .. 5 Number of other ranks (clerks, cooks, drivers, &c.) .. .. .. 16 Total .. .. .. .. .. .. .. 132 Analysis of Temporary Staff (apart from Detention Camps) as at 31st March, 1945 Number of male officers .. .. .. .. .. .. 332 Number of female officers engaged on interviewing and clerical duties .. 323 Number of female typists .. .. .. .. .. .. 141 Total temporary staff . . .. . . .. .. .. 796 Number of married women employed . . . . . . .. .. 176 Number of temporary officers occupying controlling positions .. .. 48 Number of temporary officers serving in the Forces .. .. .. 17 Analysis of Permanent Staff Total permanent staff as at 31st March, 1945 (including seconded officers and officers serving in the Forces) .. .. .. .. .. 201 Less officers serving in the Forces (all classified C, VI) .. .. 74 Effective permanent staff .. .. .. .. .. .. 127 Less officers seconded from other Departments .. .. 36 Effective National Service Department staff .. .. .. 91 Effective National Service Department staff classified higher than C, VI .. 33 Effective National Service Department staff classified in C, VI ... .. 58 Number of permanent seconded officers occupying controlling positions .. 33 Number of permanent National Service Department permanent officers occupying controlling positions .. .. .. .. 38

Analysis of Resignations, Appointments, &c., 1st April, 1944, to 31st March, 1945

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Males. Females. .Total. Head Office .. .. .. .. 55 94 149 District Offices .. .. .. 405 369 774 Detention Camps .. .. .. 127 5 132 587 468 1,055

Males. Females. Total. New appointments, secondment, and inward transfers in district offices 117 186 303 and Head Office New appointments to detention camps .. .. .. .. 70 3 73 Total new appointments, &c. .. .. .. .. 187 189 376 and outward transfers, district offices and Head Office 98 106 204 Resignations and terminations, detention camps .. .. .. 85 4 89 183 110 293 * This figure does not include transfer of Rehabilitation Division to .Rehabilitation Department.

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(iii) Appreciation 79. Opportunity is taken to record appreciation of the excellent service rendered, during a difficult year, by the staffs of the Head Office and district offices of the Department. Members of the staff generally have applied themselves unsparingly to their duties, notwithstanding that long hours and constantly varying problems have been the rule. In particular, thanks are expressed to District Man-power Officers for the splendid contribution they have made to the carrying-out of an emergency task of extreme difficulty. 80. The most helpful co-operation of Chairmen and members of Armed Forces Appeal Boards and Industrial Man-power Appeal Committees and of the members yf other auxiliary bodies associated with the Department is gratefully recorded. SECTION IV.—FINANCE AND EXPENDITURE (i) Administration Expenses (£348,962) 81. The administration expenses of the National Service Department are subject to annual appropriation by Parliament in terms of the Public Revenues Act, 1926, and provision is accordingly made for this expenditure to be met in the first instance from the Consolidated Fund under vote " National Serviee." 82. It will be observed that during the last live years the cost of administering the Department steadily increased until the peak year ended 31st March, 1944, when a very high stage had been reached in the mobilization of the man-power resources of the Dominion. Up to and including 31st March, 1944, vote " National Service " had also met the administration charges of the Rehabilitation Division of the National Service Department, and later of the Rehabilitation Department, which was established on Ist November, 1913. This latter expenditure was taken over by vote " Rehabilitation " as from Ist-April, 1944, and the decrease of £57,314 in administration expenses during the year ended 31st March, 1945, is attributable to this fact. 83. With the exception of employment-promotion expenses, for which an assessed. amount is recovered annually from vote " Labour," and miscellaneous recoveries, the net expenditure under vote " National Service " is finally recovered from War Expenses Account, Subdivision IV, Civil. 84. The amount of £348,962 shown above is the actual net charge against War Expenses Account for administration: expenses. (ii) War Expenses Account (£579,354) 85. Apart from employment-promotion expenditure, which is met by vote " Labour," all other expenditure of the Department not provided for under vote " National Service " is met direct from War Expenses Account, Subdivision IV, Civil. 86. Consequent upon the reduction in civil-defence activities in 1943, a decrease in the total expenditure from War Expenses Account during the year ended 31st March, 1944, took place, but as considerable sums were brought to charge during that year for civil-defence equipment purchased in earlier years, the decrease did not correspond with the reduction in activities. The actual extent to which civil-defence precautions were reduced is more apparent during the year ended 31st March, 1945, where a decrease of £360,121 is shown in spite of the fact that during this year, also, further outstanding claims for equipment supplied from overseas were met. Expenditure from War Expenses Account is now dealt with, while Table 1 of the Appendix contains details of expenditure under all headings. 87. Defaulters' Detention Camps (£92,767).—The expenditure under this heading includes the capital and annual operating costs of the camps. It will be observed that the net charge to War Expenses Account for detention camps was £92,767 during the year ended 31st March, 1945, as against £133,245 the previous year, a reduction of £40,479. 88. Capital expenditure during the year amounted to £6,295, and the balance, £86,472, represents operating costs. When examining costs, however, allowance must be made for the very considerable quantity of work-carried out by defaulter labour for other Government Departments, and in this connection negotiations were completed during the year for the cash recovery from the Departments concerned of the value of the work performed. Such recoveries are credited to War Expenses Account and offset the cost of maintaining military defaulters in detention. As it is not practicable to effect full cash recoveries until final valuations of the various works are possible, only a portion of the total value is being recovered at present, and during the year the sum recovered and credited to War Expenses Account was only £22,312. The total value of work performed by defaulter labour for other Government Departments during the period, however, was £50,976. Subtracting from this latter figure the sum of £22,312 recovered in cash and deducting the balance of £28,664 from the operating cost of £86,472, it will be seen that the net cost to Government funds of operating the detention camps, including administration and maintenance of inmates, was £57,808 for the year. 89. Emergency Fire Service (£14,424).—The Emergency Fire Service as a separate entity no longer exists and the greater part of last year's expenditure was incurred in meeting outstanding claims for equipment, including couplings, £3,506 ; trailer pumps, £4,469 ; and hose-carrying vehicles, £6,767. Emergency fire-stations for the fire protection of war stores, hospitals, and other installations for the New Zealand and American Armed Forces are established in the Auckland and Wellington areas under the control of the local brigades, and the gross capital and operating costs met by the Department for these stations during the year was £20,211. The sum of £19,729, however, was recovered from reverse lend-lease against this expenditure, leaving a net charge of £482 for the year. A portion of the amount recovered, however, was in respect of the previous year's expenditure.

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90. Including the sum of £32,000 paid by the Department of Internal Affairs for fire-fighting equipment transferred to its control, the proceeds from the sale of surplus assets totalled £32,295 during the year, and this figure more than offsets the net expenditure of £14,424 by the Department. 91. Emergency Precautions Scheme (£25,046). —The main items of expenditure under this heading were subsidy to 8.P.8. organizations, £15,316, and payment of outstanding accounts for equipment received in earlier years, £4,777. The subsidy figure of £15,316 includes a substantial amount for outstanding claims at 31st March, 1944, but, in addition to this, although the Emergency Precautions Scheme has reverted to a peacetime basis, it has been necessary to continue paying reduced subsidies to the larger E.P.S. organizations on administration costs incurred by them on the disposal of considerable quantities of surplus stores. 92. Proceeds from the sale of surplus E.P.S. assets totalled £8,962, and this figure should be offset against the net expenditure of £25,046 for the year. 93. Home Guard. —The figures under this heading cover the expenditure incurred by the Department for the Home Guard from the time of its inception to 31st July, 1941, when the control was transferred to the Army Department. 94. Industrial Mobilization (£46,435). —Expenditure under this heading includes the payment of financial assistance, travelling-expenses, loss of earnings, and separation allowances to workers directed under the regulations to essential undertakings, reimbursement of travelling-expenses to members of Man-power Utilization Councils and Committees, and special holiday allowances to workers who as the result of direction lost holiday pay which would otherwise have been due to them under the Annual Holidays Act, 1944. 95. The main items of expenditure were financial assistance, £6,737 ; loss of earnings, £1,959 ; separation allowance, £22,391; travelling-expenses, £11,778; special holiday allowance, £1,460; and war workers' hostels, £1,910. 96. Women's Land Service (£s2,B67).—Expenditure under this heading including the cost of uniforms to members of the Service, £31,052 ; uniform upkeep allowance, £15,975 ; travel concessions, £1,282 ; and subsidy, £4,013, paid to approved employers for the training of inexperienced girls. 97. Women's War Service Auxiliary (£1,147 Credit). —Miscellaneous expenditure amounting to £54 only was incurred under this item during the year, but as against this outstanding credits totalling £1,201 were received, making a net credit of £1,147 for the year. Although the Auxiliary is still functioning, the stage has passed where expenditure on uniforms and equipment is necessary. 98. To the above credit of £1,147 should be added the sum of £1,024 the proceeds from the sale of surplus equipment during the year. (iii) Promotion of Employment 99. Details of promotion of employment expenditure are shown in the separate Section dealing with employment-promotion schemes. 100. Table 1 of the Appendix summarizes all expenditure over the last five years. SECTION V. THE POLICY AND ORGANIZATIONAL OUTLOOK (i) Abolition of Controls 101. It was stated in Subsection (v) of Section II of this Part of the report that the Department has administered man-power control as sympathetically and tactfully as possible. 102. A question which is widely asked is how long man-power controls—basically the direction of workers and the restriction of labour inflow to and outflow from undertakings—will continue in force. On this subject it is the plainly declared intention of the Government to abolish man-power control as soon as this can be done without prejudice to the war effort and the rehabilitation of the thousands of men and women still serving with the Forces. 103. It will be evident, however, that man-power controls cannot be abolished overnight, and that the relaxation of these controls must necessarily be effected gradually if disruption of industry during the period of transition from war to peace is to be reduced to an absolute minimum. 104. As indicated elsewhere in this report, the application of wartime man-power controls has been effected under two broad headings : — (а) By means of declarations of essentiality over specified industries or undertakings engaged in the production of essential supplies both for war and civilian purposes and other essential services such as hospitals and transport, &c., in which it was necessary not only to maintain the existing labour force, but to supplement the available personnel by diverting thereto workers from less essential types of employment. Such industries of undertakings have for the most part been those to which workers have been directed. (б) By requiring persons, both male and female, falling within specified age groups or possessing special trade qualifications to register with Man-power Officers so that a reallocation of the available labour force could be effected where necessary to ensure that such labour was employed to the best advantage in the national interest. 105. With the improvement in the war situation, consideration had been directed to the question of how wartime man-power controls could best be raised, and after a close examination of the general situation and the employment position in all important industries and services it was decided that the gradual relaxation of man-power controls could best be effected by progressively exempting from such

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controls persons falling within certain classes according to age or marital status, and by revoking declarations of essentiality in respect of those undertakings which, owing to the changed circumstances, could not justify the retention of the protection afforded by the regulations or which could reasonably be expected to retain adequate staff without the existing restrictions on the movement of labour. 106. The freeing of classes of persons from fhan-power control will be kept under constant review, and relaxations will be granted as soon as it becomes possible to do so without adversely affecting the staffing position of those industries or services which must still be afforded protection in the national interest. 107. In dealing with the revocation of declarations of essentiality it has been decided that the immediate aim should be to permit the maximum freedom by removing all declarations with the exception of those in respect of undertakings engaged in the following types of essential production or services : — (а) Production for purposes of meeting the essential requirements of returned servicemen. (б) Production necessary to maintain supplies to Britain and Europe and to the Armed Forces, or to meet Government commitments to U.N.R.R.A. and the Netherlands East Indies, &c. (c) Production or services which have serious arrears to be overtaken in order to ensure maximum safety or well-being —e.g., removal of electrical fire hazards, removal of dangers to public health from defective plumbing or drainage, the provision of housing, &c. (d) Production or services of a key nature which will fail unless labour continues to be safeguarded—e.g., coal production, gasworks, transport, accommodation and meal facilities, and the maintanence of hospitals and mental hospitals, &c. (e) Production or services in which special difficulties in the reabsorption of demobilized servicemen are anticipated if wartime staff are dispersed and replaced by permanent staff from civilian sources before demobilization occurs. 108. Even in the above cases should the labour position in any particular district or locality become such that further difficulties in maintaining adequate staff are unlikely, revocation will bo considered at that point. 109. In determining those particular undertakings in respect of which declarations of essentiality might reasonably be revoked without seriously interfering with vital production or services, the employers concerned, Man-power Utilization Committees, and the appropriate workers' and employers' organizations will, as far as possible, be given an opportunity to express their views as to the possible effects of the removal of declarations. Controllers exorcising jurisdiction in respect of the particular industries concerned will also be consulted. 110. Opinions are held in certain quarters that the partial removal of declarations may react to the detriment of the particular undertakings concerned and that all existing declarations should be retained until such time as it is possible to abolish all man-power controls. As stated previously, the complete abolition of man-power controls immediately on cessation of hostilities in Europe would inevitably result in a general exodus of workers from vital industries and services which must be maintained if the production of necessary supplies and the rehabilitation of servicemen is to be successfully achieved. In the circumstances, a policy of progressive relaxation designed to give the maximum degree of freedom by removing restrictions in respect of undertakings falling within the lower categories of essentiality, while at the same time safeguarding, during the period of transition from war to peace, those industries and services which will be vital to the successful prosecution of the war against Japan and the maintenance of essential civilian supplies and services, would appear to bo the only practical course. 111. It is felt that any opposition to the gradual relaxation of controls and the partial revocation of declarations arises from a fear that the undertakings concerned will lose that measure of protection which they have been afforded, and that in future labour will be directed therefrom to the more essential undertakings which will still remain covcred by declarations. In this connection it is worthy of note that for some considerable time it has been necessary, owing to the extent to which labour engaged in non-essential undertakings has been depleted, to resort to the direction of labour from declared undertakings in the low categories of essentiality to higher priority undertakings. This has applied more particularly in connection with the staffing of such undertakings as freezing-works, dairy factories, sawmills, ship repair concerns, gasworks, tanneries, mental and general hospitals, and clothing-factories. 112. While this policy will have to be continued to the extent necessary to ensure that adequate labour is made available for essential food production, the provision of accommodation and clothing for returning servicemen and civilians, and the maintenance of essential services such as hospitals and transport, it is not anticipated that the revocation of declarations in respect of certain undertakings will have any material effect in so far as the compulsory direction of labour from such undertakings is concerned. The need for maintaining the staffing position of those undertakings which have been considered to be of sufficient importance to warrant the granting of a declaration of essentiality is fully appreciated by the Department, and although an unqualified assurance that staff will not be compulsorily directed from such undertakings to higher priority employment c'annot be given, staff will not be arbitrarily directed from such undertakings merely because declarations are revoked. 113. Another factor which will have an important bearing on the general staffing position of such undertakings is that, with the general relaxation of controls and the return of many thousands of men from overseas, the number of persons who will have complete freedom to choose their own employment will be materially augmented. The available pool of non-directable labour should therefore be sufficient to enable non-essential undertakings to make good any staff losses that may result from the direction of employees to higher priority work. 114. As an indication of the need for maintaining the present declarations and controls in respect of the more essential industrial groups, the following details as to the number of persons employed therein under current direction at the 31st March, 1945, are set out hereunder. These, for the most

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part, represent additions to the labour force of suoh industries by compulsory direction, and in considering the practicability of revoking the declarations it must be realized that if the present restrictions were abolished the loss of personnel would in all probability be. considerably in excess of the figures shown, in that many of the workers who have been held in these undertakings would no doubt seek other employment. Table 28 of the Appendix depicts graphically the broad industrial distribution of the 63,219 males and 15,947 females estimated to be employed under direction as at 31st March, 1945. Persons working under Direction as at 31st March, 194.5, in the More Important Industrial Groups Males — Farming .. .. .. .. .. .. .. 8,853 Sawmilling and mining, &c. .. .. .. .. .. 3,392 Food processing .. .. .. .. .. .. 12,288 Building and allied trades .. .. .. .. 9,858 Transport and communications .. .. .. .. .. 5,768 Total .. .. .. .. .. .. 40,159 Females— Clothing-factories and woollen-mills .. .. .. .. 4,030 Hospitals .. .. .. .. .. .. .. 2,774 Restaurants, hotels, and domestic .. .. .. .. 1,670 Food processing .. .. .. .. .. .. 1,412 Transport and communications .. .. .. .. .. 426 Total .. .. .. .. .. .. 10,312 115. Notwithstanding the overall relief which will be afforded to industry by the return of some thousands of servicemen from overseas, and the further reduction of home-service personnel, it is evident that man-power controls in a modified form must be retained until some time after Japan is defeated and normal labour conditions apply if the staffing position of the more vital industries is to be safeguarded. It is equally evident that any relaxations that may be possible in the interim must necessarily be effected gradually in order that disruption of industry will be reduced to an absolute minimum during the period of transition from war to peace. 116. While it is the aim to abolish man-power controls at the earliest possible date, it is not practicable at this juncture to nominate a date from which this will take effect, but a progressive relaxation concluding with the complete abolition of man-power control within a short period after general demobilization can be anticipated. (ii) Plans for Full Employment 117. Although there are wide differences of outlook on the question of State responsibility for economic activity, the consensus of Government and public opinion in New Zealand and other English speaking countries has, during recent years, tended to the view that the State is in the last resort responsible for the removal of unemployment. Since the outbreak of war full employment has almost without exception figured as a policy objective of the individual united nations. There can be little doubt that the success of any peace settlement will substantially depend upon the extent to which the nations of the world arc able to realize and maintain a state of full employment. The policy of the New Zealand Government is based on recognition of the fact that the State is fundamentally responsible for the maintenance of full employment. Internationally this view is now so far accepted that it is agreed that each Government's responsibility for maintaining full employment does not end with assuring employment for its own nationals, but extends to the promotion of world trade and through it the raising of the standard of living of other peoples the prosperity of all of whom depends on consumer purchasing power which is high, stable, and general. 118. At all of the important international conferences by means of which the United Nations are progressing towards the reconstruction of world peace and prosperity there has been implicit recognition of full employment as both a policy objective and a definite responsibility of every Government. It is specifically mentioned as an objective in the United Nations Charter, the Bretton Woods Agreement, the Philadelphia Charter of the 1.L.0., and in other important international documents. 119. Full employment may be said to exist in a given society when there are no persons idle who are both able and willing to work. If theoretical precision is insisted upon, this definition does not quite satisfy, because the existence of a large number of unemployed persons who were able but' unwilling to work would, in. fact, imply a state of only partial employment. Furthermore, it is not enough that everybody able and willing to work should be merely employed. Inherent in the concept of full employment is the assumption that they will be so employed as to contribute most to economic welfare. With these two theoretical qualifications the definition used does, however, give clearly what is meant by the term. In practice, as Sir William Beveridge points out, full employment implies a state of affairs in which unemployment is reduced to short intervals of standing by, with the certainty that very soon one will be wanted in one's old job again or will be wanted in a new job that is within one's powers. It implies also having always more vacant jobs than unemployed men, not slightly fewer jobs. It means that the jobs are at fair wages, of such, a kind, and so located that the unemployed men can reasonably be expected to take them, and it means by consequence that the normal lag between losing one job and finding another will be very short.

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120. The broad direction of employment research in New Zealand is set by the following two conditions :— (a) The location of industry must be planned to harmonize, as far as possible, with the distribution of population. (b) The mobility of labour must be assisted by the greater use of the Employment Service and dissemination of information concerning regional employment trends. 121. In New Zealand the establishment of the Organization for National Development early in 1944 set in motion machinery to plan and co-ordinate the economic transition to peacetime conditions and the subsequent development of industrial activity. Full employment is thus the main reason for the Organization's existence. 122. The National Service Department works in close association with the Organization for National Development in all matters concerning personnel in industry, and by arrangement the Department, in co-operation with the Rehabilitation Department and the Organization for National Development, will be responsible for the initiation and execution of all personnel'research assignments. Already a number of these are in hand. 123. As far as New Zealand is concerned, an important corollary flows from the requirement that the mobility of labour must be assisted. It is that adequate provision must be made for the training and retraining of juveniles and unskilled workers as well as skilled workers no longer able to engage in their main occupation. 124. As far as the National Service Department is concerned, planning for full employment is expected to involve — (a) Progressive surveys of absorptive capacity in the bulk of industries. (b) The building-up of information concerning employment available in both the short and long runs —i.e., corresponding to the workpile of American economists. (c) Precise and continuous classification and recording of all classes and number of workers seeking employment. (d) The continuing analysis of job specifications, working-conditions, and training requirements for all occupations observed in the New Zealand economy. (e) The progressive ascertainment of training scope in the various trades and skilled occupations. 125. Development along these lines is already taking place, and given the co-operation of employers and workers with the free Employment Service much can be done towards attaining the objective of full employment in New Zealand. (iii) The Post-war Employment Service 126. Relaxation and ultimate abolition of man-power control will dictate a substantial adjustment in the industrial man-power machinery and procedure of the Department. Whatever the nature of this adjustment, it is plain that an Employment Service of some kind is most necessary. 127. The State Placement Service, which was established by the Employment Division of the Labour Department in May, 1936, was the first New Zealand organization akin to the employment exchanges and services of older countries. Hampered though it was by its tributary relationship to employment promotion measures and by the somewhat sceptical attitude of many employers, the Placement Service from the inception until its suspension at the end of 1941 had filled a total of 178,000 positions in industry. This fact gives an indication of the important part that an adequate Employment Service could play in the social and economic life of the country. 128. The outlook is for a progressive dovetailing of the relaxing industrial man-power procedure of the Department with a developing voluntary procedure typical of a non-compulsory Employment Service. With the Department's resumption of responsibility for the placement of all ex-servicemen and its already discernible responsibility to find employment for marginal civilian workers, this tendency is already evident. It can be expected to continue until, shorn of wartime functions both in the military and industrial fields, the Department becomes a pure Employment Service. To the extent that the Employment Service is developed, and supported by the public, it can assist in the general scheme to maintain full employment. 129. The basic function of the Employment Service will be to economize the labour resources of New Zealand —i.e., to assist workers to find the work at the highest level of which they are capable, and to assist employers to find the most suitable workers for positions vacant. The technique which this function involves includes— (a) The scientific and complete analysis of the employment field. This is achieved by the building-up of authoritative and detailed data concerning all industries and occupations, and by the periodic ascertainment of actual and potential vacancies in the various industries and occupations. (b) The scientific appraisal of all workers seeking engagement with the purpose of ascertaining the highest level of work which they could discharge satisfactorily. (c) The speedy and efficient placement of labour available in vacancies available. 130. Administration of this technique implies the closest liaison with employers, Vocational Guidance authorities, psychiatrists, industrial psychologists, and any other persons or organizations capable of, assisting in carrying out the Employment Service's main function. 131. Two organizational developments already identifiable as necessary components of the postwar Employment Service are a higher-appointments organization and a juvenile employment service. The former will necessarily co-operate with University authorities, professional bodies, and technical institutes, while the latter will require to dovetail with the existing Vocational Guidance Centres of the Education Department. 132. Statutory recognition of the Employment Service and its various functions is indispensable to an adequate definition of its scope and to the efficiency with which it serves the interests of employers and workers. Consideration is at present being directed to this question.

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PART lI.—MILITARY MOBILIZATION SECTION I.—STRENGTHS AND CASUALTIES OF THE FORCES (i) Total Strengths 133. At any given time the total strength of the Armed Forces, excluding the Home Guard and any other part-time auxiliary organizations, is the measure of a country's direct military man-power contribution. New Zealand's direct contribution, commencing with 3,000 (regular staff) in September, 1939, rose to its peak in September, 1942—157,000 (or 170,000 if the 13,000 casualties then recorded are taken into account)—and by March of the current year had declined to 99,000. These figures are inclusive of males and females on New Zealand and overseas strength. 134. Until the end of 1941 mobilization was directed to harnessing the available man-power resources to enable New_ Zealand to play its part in the war against Germany. The most marked features of the development in total strengths during this period were the physical achievement of organizing practically from scratch the mobilization achieved—i.e., almost 120,000 over the figures at the outbreak of the war, and, as far as Army was concerned, the building-up of a large Territorial Force which, although doing only three months' intensive training, was nevertheless at hand for full-time mobilization as a trained Force whenever required. The objects of mobilization up till the end of 1941 were, then, firstly the recruitment and training of men in each of the three Service arms with a view to their despatch overseas to the theatres of war in which they could be most effective, and secondly the building-up of a reserve Force for home-defence purposes. 135. As explained in Part I of this report, the whole complexion of military policy was changed by the entry of Japan into the war in December, 1941. The emphasis was immediately switched to the strengthening of New Zealand's capacity to defend her own shores, and it was under the stimulus of this emergency that peak mobilization was reached by September of 1942. The mobilization achievement m 1942 must be regarded as a spectacular one. Thereafter, since mobilization was complete except for the further call-up of men held under appeal in industry and maturing fit men, the figures wane for the reasons already mentioned—viz., reduced accretions, and increased deletions as a result of repatriation of casualties and long-service personnel, and releases to industry. 136. A progressive analysis of the total strengths of the Forces is given in Table 2 of the Appendix. (ii) New Zealand and Overseas Strengths 137. Up to the end of 1942 the majority of the total strength of the Forces was located in New Zealand. During the first two years of war this was due to the fact that personnel in mobilization camps were undergoing training for overseas service, and, during 1942, to the huge mobilization of men for the defence of New Zealand itself. By 1943, however, the large Forces of men serving in New Zealand were progressively reduced as the overseas contribution to each of the three arms and particularly that of the Army, was extended. By March of 1944 the total overseas strength standing at 72,000, considerably exceeded the total New Zealand strength, which at that time was 54,000. As at the end of March of the current year the total overseas strength, although diminished by 16 000 on the total overseas strength of last year, still considerably exceeded the total New Zealand strength of 4-3,000. 8 (iii) Comparative Strengths of the Service Arms 138. In total strength the Army from the outset has easily outstripped the other two Service arms, and the Air Force has also easily outstripped the Navy. Strengths at the outbreak of war were confined to the Regular Force strength of approximately 1,000 for each of the Service arms, but at the point of peak mobilization—September, 1942—the comparative total strengths were :' Army 127,000 ; Air Force, 24,000 ; Navy, 6,000. Since that time the total Army strength has progressively receded to its present total of 53,000. The Air Force, on the other hand, continued to expand until m May of 1944 it reached a peak of 42,000. The Air Force strength has declined until now it stands at 36,000. The experience of Navy has been that peak mobilization has only been reached at the present time. Since September, 1942, when the total strength was 6,000, small but progressive additions have been recorded until at the present time the total strength of the Navy is 10*000 of which number 6,000 men are serving overseas. 139. The figures given for each of the Service arms are inclusive of members of the three female auxiliary services-viz., W.A.A.C., W.A.A.F., and W.R.N.S. Strengths of each of the three women's auxiliaries as at 31st March, 1945, are given together with the comparable figures for male strengths I? wbm o / rabl ® 17 of the -A-PP en dix classifies by occupation the present strength of the W.R.N.S, The W.A.A.C. and W.A.A.F. strengths were similarly classified in the 1944 annual report.

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(iv) New Zealand's War Casualties 140. As at the end of March of the current year the total casualties suffered by New Zealand during the war stood at 35,363. Total casualties include killed as a result of enemy action, 9,407 ; missing, 948 ; prisoners of war, 6,957 ; wounded, 18,051. Three qualifications to the total casualty figures are — (a) Total prisoners of war as at March of the present year are given as the total actually in captivity at that time, which is somewhat less than the total of persons who have at any time been prisoners. (ft) The total number of casualties under the heading of wounded will include a number of servicemen wounded on more than one occasion, as this figure is a cumulative total of cases reported as wounded. (c) The total casualty figure does not include a small number of casualties (due to accident, sickness, &c.) which have taken place among the Forces in New Zealand itself, nor does it include deaths among the overseas Forces due to natural causes or suicide. 141. Casualties have progressively increased from a total of 13,453 in March, 1942, to 23,486 in March, 1943, to 29,761 in March, 1944, and to 35,363 as at March, 1945. 142. As might be expected, the Army has suffered the greatest absolute and relative number of casualties, the total to date being 29,903. Air Force casualties have also been somewhat heavy at 4,803. Those of Navy have been small but relatively comparable to those of Army. A feature of the statistics of casualties is that if regard is had to casualties resulting in death, the Air Force with 3,012, as against the Army's total of 5,970, has been a heavy sufferer. 143. Table 4 of the Appendix analyses in detail the progressive number of casualties under each of the four headings, killed, missing, prisoners of war, and wounded, for each and all of the Service arms. SECTION lI.—MAN-POWER CALLED UP AND MEDICAL CLASSIFICATIONS (i) Total Persons called up and examined 144. By the end of March of the current year the large total of 370,000 men and 14,800 women had been called up or had volunteered for service with the Forces. 145. If from this total there is subtracted the number of men and women whose medical examination was not undertaken, such, for example, as in cases of confinement in prison, hospital, or mental hospital, disappearance, desertion, &c., the total number of persons to date attested and medically examined for service with the Forces is yielded. As far as can be estimated from the records of the Services, it is in the neighbourhood of 350,000 men and 14,500 women. 146. The cumulative total of individual men attested and examined for service with the Forces is indicated in the table below. In this table allowance has been made for dual attestations and examinations, such, for example, as when attestation and examination for service with different arms of the Forces is completed in the case of one individual, or again as when more than one examination has been conducted by the same arm. Table of Estimated Progressive Totals of Men attested and medically examined (All Service arms) Up to 31st March — 1941 .. .. .. .. .. .. 135,000 1942 .. .. .. .. .. .. 205,000 194-3 .. .. .. .. .. .. 332,000 1944 .. .. .. .. .. .. 342,000 1945 .. .. .. .. .. .. 350,000 147. By far the greatest number of men attested and examined have gone through the Army procedure. If those handled by the Air Force and the Navy in addition to going through the Army attestation and examination procedure are excluded, an estimated total of only 9,000 has been dealt with by the Air Force and 4,000 by the Navy. These men comprised either volunteers entering either the Air Force or the Navy before the introduction of compulsory military service, or under-age volunteers who entered either arm since that date. Due to the difficulty of precisely ascertaining transfers between the Services, the number of persons attested and examined by Air Force and Navy, but not by Army, must be regarded as an approximation subject to considerable reservation. 148. The position of females is more clear cut, as the incidence of overlap in enlistments is negligible. Of the cumulative total of enlistments and examinations—viz., 14,800 —5,500 have been in respect of W.A.A.C.s, 7,900 in respect of W.A.A.F.s, and 1,400 in respect of W.R.N.S. 149. As might be expected from observations made elsewhere upon the stages in the war situation, the bulk of call-up and medical examination work was performed in 1942 and 1943, when mobilization for home defence against a possible Japanese invasion was followed by further heavy mobilization to enable the despatch of man-power to overseas theatres of war. During the last two years the number of persons handled has mainly been confined to men reaching military age. (ii) Volunteers examined 150. Of the total of 350,000 men and 14,500 women examined, 70,000 men and all of the women have been volunteers. 151. Again ignoring overlap in attestations and medical examinations, it has been estimated that 57,000 male volunteers have been attested and examined by Army, 9,000 have been attested by Air Force (and not by either Army or Navy), and 4,000 by Navy (and not by either Army or Air Force).

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152. Army volunteers have included only men attested before the introduction of compulsory service—i.e., October, 1940. The bulk of the Air Force and naval volunteers were also attested before this time, but several thousand under-age volunteers have entered either the Air Force or the Navy since that date. (iii) The Ballot Yields 153. Tables 5, 6, and 7 of the Appendix give details of the medical classification, area distribution, &c., of the men called in ballots Ito 23 and examined. 4,609 men included in ballot 23 do not figure in lable 7. With the exception of men graded IV—i.e., a total of 10,333 —the potential reserve of man-power up till the gazetting of the twenty-third ballot—i.e., November, 1944 —was 237,954. As both Grade II and Grade 111 men were called upon to serve with the Forces, many of their number were subsequently mobilized. The total reserve was not all mobilized, however, due to wastages from reservation under appeal in industry, conscientious objection, subsequent down-grading, desertion, imprisonment, death, &c. SECTION lII.—NET MAN-POWER INTAKE OF THE FORCES (i) Cumulative Intake of all Arms 154. From the outset of the war to the 31st March, 1945, the cumulative net intake of individuals by all Service arms was 190,000 males and 9,700 females. Due to transfers of servicemen between the various arms, the gross total of intakes for the same period stands at 218,000 males and 9,700 females. 155. The difference between the cumulative net intake of men into all Service arms and the total number attested and examined—viz., 350,000—is explained by Grades 111 and IV, &c., 60,000 ; held on appeal as at 28th February, 1945, 28,000; not posted—i.e., out of the classes being posted, and other reasons—72,ooo. 156. The table below shows the aggregate cumulative gross intake of men into all of the Service arms (including duplications through transfers, &c., estimated to total 28,000 to date) at twelve-monthly intervals from March, 1941, to date : —• Date. Up to 31st Match— Gross Intake. 1941 .. .. .. .. .. .. 113,000 3942 .. .. .. .. .. __ 145,000 1943 .. .. .. .. .. .. 192,000 1944 .. .. .. .. .. .. 208,000 1945 .. .. .. .. .. .. 218,000 157. The net intake of individual men into the Forces—i.e., not including duplicate intakes through transfers or more than one entry—is as follows :— Date. Net Intake of Up to 31st March— Individual Men. 1941 .. .. .. .. .. .. 113,000 1942 .. .. .. .. .. .. 145,000 1943 .. .. .. .. .. .. 185,000 1944 .. .. .. .. .. .. 187,000 1945 .. .. .. .. .. .. 190,000 (ii) Comparative Intakes of the Arms 158. The following table gives the details of the gross intakes, males and females, of each of the Service arms to date and at twelve-monthly intervals from March, 1941. As commented in the previous Subsection, the aggregate intakes are inflated by approximately 28,000 (to date) duplications due to transfers between the Service arms, the aggregate net intake of individuals by the Forces being only 190,000. The gross intake of men by each Service arm is as follows :—

159. As might be expected, it is apparent from this table that the Army has inducted approximately three times more than the next largest Force, the Air Force, notwithstanding the fact that at the present time the Air Force is considerably more than half as large as the Army. 160. Navy, with a total gross intake of 12,000, is small by comparison with the other Service arms, having an intake of only one-quarter that of the Air Force and about one-thirteenth of that of the Army. 2*

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Gross Intakes of Men (including Duplications through Transfers, &c.). Army. Air Force. Navy. Total. 31st March, 1941 .. .. .. 99,000 10,000 4,000 113,000 31st March, 1942 .. .. .. 115,000 25,000 5,000 145,000 31st March, 1943 .. .. .. 147,000 38,000 7,000 192,000 31st March, 1944 .. .. .. 153,000 45,000 10,000 208,000 31st March, 1945 .. .. .. 156,000 50,000 12,000 218,000

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SECTION IV.—MAN-POWER WITHDRAWN FROM THE FORCES (i) Cumulative Total of Appeal Board and Man-power Officer Releases 161. From the time of the establishment of the National Service Department in July, 1940, until 31st March of the current year, 64,600 releases of servicemen from, the Forces have resulted from action on the part of either Armed Forces Appeal Boards or District Man-power Officers. It is important to note that this figure relates to releases which have taken place, and not to individuals released. No records of the precise number of individuals released has been maintained, but it is probable that 50,000 of the total of Man-power Officer and Armed Forces Appeal Board releases have related to different individuals. The balance of 14,600 would refer to men who have at one time or another been withdrawn from the Forces to engage in important work—for example, 3rd Division personnel and other personnel from time to time released, only to be subsequently remobilized. The progressive increase in the number of men released from the Forces is indicated by the number of releases for the three periods distinguished —viz., outset to March, 1943, total 16,300 ; April, 1943, to March, 1944, total 23,900 ; April, 1944, to March, 1945, total 24,400. 162. Details of releases effected from, the Forces on the initiative of Man-power Officers and Armed Forces Appeal Boards, as well as releases effected by other means, are given in Table 14 of the Appendix. (ii) Rehabilitation Releases 163. Considerable difficulty stands in the way of arriving at an accurate figure of releases of man-power from the Forces occasioned by the down-grading of the men themselves and by their eligibility for special rehabilitation consideration. These rehabilitation releases, as they are called, cannot be identified with the total number of ex-servicemen whose cases are recorded with the Rehabilitation Department, as the practice of the Rehabilitation Department has been to ignore the cases of men released by man-power action other than those of men who have applied to the Rehabilitation Department for some form of assistance. As these men have applied they have been brought on the rehabilitation strength. In this way the total number of ex-servicemen and women recorded by the Rehabilitation Department has reached the figure of approximately 68,000 by March of the current year, but it, too, is incomplete for the reason that those ex-servicemen withdrawn by Armed Forces Appeal Boards and District Man-power Officers and who have not applied for rehabilitation assistance have not been taken on the strength of the Rehabilitation Department. 164. The best means, therefore, of arriving at the number of true .rehabilitation releases appears to be to take the number of releases from the Forces through sick and wounded channels and add to these the personnel of the various furlough drafts which have remained in New Zealand and also personnel of such repatriate long-service drafts as had arrived in New Zealand by March of the present year. This approach yields a total number of rehabilitation releases of 24,400 from the outset of the war to 31st March of the current year. The total number of pure rehabilitation withdrawals up to 31st March, 1943, is estimated to have been 6,500. During the year ended 31st March., 1944, a total of 8,000 was recorded, and for the last twelve months the corresponding total was 12,600. The bulk of the 24,400 rehabilitation releases would relate to separate individuals, as only 3,000 are regarded by the Rehabilitation Department as having returned to active service. (iii) Landmarks in the Wholesale Withdrawal of Personnel from the Forces 165. Until the spring of 1942 there was no dramatic withdrawal of man-power from the Forces. At this time, however, the peak of military mobilization to meet the threat of Japanese aggression had been achieved, but only at serious cost to the industrial labour force. As the seasonal fluctuation in the demand for labour in New Zealand is estimated at from 20,000 to 30,000, the capacity of the then labour force to meet farm and other seasonal labour requirements during the 1942-43 season was plainly inadequate. Accordingly, the spring of 1942 saw the first wholesale withdrawal of man-power for industrial purposes. It was within the scope of this first considerable withdrawal that the bulk of the 16,300 man-power and Appeal Board releases recorded as at 31st March, 1943, was effected. The Forces in New Zealand were the source from which this man-power was withdrawn, and by far the majority of those withdrawn came from the Army personnel in New Zealand. The industry which gained most directly from the withdrawal was the farming industry, no fewer than 3,000 nominated experienced farm workers being withdrawn in addition to another 5,000 persons prepared to undertake farm-work. 166. The large figure of man-power withdrawals for the year ended 31st March, 1944 —viz., 23,900 — is explained not so much by a single important development as by a' combination of developments. The most important of these was the decision of Government, since the threat of Japanese invasion had been removed, to reduce permanently the home-defence establishment. Accordingly, Army and Air Force, on applications from the District Man-power Officers and on recommendations by Armed Forces Appeals Boards, released the bulk of the large number involved, most of the men affected being down-graded or over-age men. The balance of the 23,900 released during the year in question comprised the special drafts of down-graded men returned from Fiji, Tonga, and Norfolk Islands, and the Forestry and Railway groups, which were all returned to engage in essential work. During the last twelve months the most dramatic man-power release development has been the return of the bulk of 3rd Division (Army) personnel from, the Pacific theatre and their direction to essential industry. Up to the end of November, 1944, some 10,500 had returned from the Pacific and some 9,500 had been directed to work in essential or other important industry. The balance of the man-power withdrawn through man-power action during the last twelve months—i.e., approximately 50 per cent. —is explained by the continued reduction of Army and Air Force, New Zealand establishments and by the cumulative effect of routine recommendations by District Man-power Officers and Armed Forces Appeal Boards.

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167. As far as rehabilitation releases have been concerned, the figure of 6,500 realized by the end of March, 1943, would relate entirely to men released through sick and wounded channels, as would the bulk of the further 8,000 released from this sourcc during the year ended 31st March, 1944. The step-up in the figure for that year is, of course, explained by the heavy engagement in which the New Zealand Division was involved at that time. 168. The total rehabilitation releases of 9,900 during the last twelve months do not include more than 25 per cent, of sick and wounded releases. The balance are almost entirely first or second furlough draft personnel who exercised the right to remain in New Zealand, and long-service repatriate personnel who were returned before April of the present year. SECTION V.-ACTIVITIES OF ARMED FORCES APPEAL BOARDS - # (i) Activities, August, 1940, to March, 1944 169. The organizational development of Armed Forces Appeal Boards from their establishment in August, 1940, up to 31st March, 1945, is described in Section I of Part I of the report. 170. The activities of the Boards between August, 1940, and March, 1944, involved, of course, the screening of all compulsory mobilizations —such screenings being effected by means of consideration of appeals lodged on one ground or another by cither the reservist or the employer or the Director of National Service. 171. During this period Armed Forces Appeal Boards played a vital part in the postponement of service of men who, especially under the stress imposed by the major mobilization of 1942, were for the time being indispensable to the industrial war effort. During 1943 and the first quarter of 1944 the screening activity of the Boards again enabled the reinforcement and development of overseas Forces in such a way as to enable industry to bear the draw-off of man-power in the best possible manner. 172. From May, 1943, to March, 1944, Armed Forces Appeal Boards had heard 10,714 appeals against military service on all grounds —i.e., public interest, undue hardship, status, and conscientious objection. Of this number, 1,213 were dismissed outright or withdrawn and a further 728 were dismissed subject to time or service condition, while 6,344 were adjourned sine die ; 2,429 were struck out, the reservist in each case being Grade IV, or adjourned because of the temporary medical unfitness of the reservist. Table Bof the Appendix shows the growth in the number of determinations of each kind from May, 1943, to March, 1945. (ii) Activities, April, 1944, to March, 1945 173. During the year ended 31st March, 1945, Armed Forces Appeal Boards heard the extraordinarily high total of 30,012 appeals (on all grounds) against military service. The outstanding element in this huge increase was, of course, the comb-out of Category " A " men held on appeal until November, 1944. The activities of Armed Forces Appeal Boards during the last twelve months have not only involved the review of appeals in respect of men already held under appeal, but have also involved the hearing of first appeals. The figures do not show the number of persons affected, but the number of new appeals and reviews heard. 174. A total of 11,456 of the 30,012 appeals heard during the last twelve months were heard in the first quarter of the current year, and 6,539 in the last quarter of the preceding year. Appeal Boards have therefore, during the last six months, worked at an unequalled tempo. The needs of the Second Division replacement scheme resulted in the outright dismissal of 2,576 appeals during the first quarter of the current year and 963 during the last quarter of the preceding year, while the comparable figures for appeals dismissed subject to a time condition were 2,316 and 758. As a result, therefore, of the activity of the Armed Forces Appeal Boards, 1,721 men in the last quarter of 1944 and 4,892 men in the first quarter of the current year have been made available to meet the needs of Army, either immediately or with only a brief time qualification. 175. Armed Forces Appeal Boards faced particular difficulty in the last year because, as the total number of Category " A " and Grade I twenty-year-old men held on appeal was progressively reduced from 41,617 in March, 1944, to 28,292 in February, 1945, the scope for dismissal of appeals was much narrowed. Furthermore, the activities of Boards during the last twelve months have had to bo pursued in an industrial situation marked by a total of vacancies in essential industry in the neighbourhood of 10,000. Men released for service had to be so released in such a way as to do least injury to the more important undertakings. This, in turn, involved taking into account the extent of assistance which undertakings had received or were still receiving from the services of rehabilitated ex-servicemen and members of the 3rd Division " Necal " drafts. 176. Notwithstanding these difficulties, Armed Forces Appeal Boards have by their contribution greatly assisted the manning of all Second Division replacement drafts so far despatched. 177. In addition to the hearing of appeals against service, Armed Forces Appeal Boards have continued during the last twelve months to discharge the complementary function of recommending releases of industrially valuable personnel. This aspect of the activities of Appeal Boards and District Man-power Officers is discussed in the previous section of this report —i.e., in particular, reference to the cumulative total of persons withdrawn by Appeal Board and Man-power Officer action.

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178. Table 15 of the Appendix gives a broad industrial classification of the 24,375 releases of men from the Forces initiated by Armed Forces Appeal Boards and District Man-power Officers during the last twelve months. Reference to the numbers involved under each industry will give some indication of the industrial priorities observed by Appeal Boards and Man-power Officers during the period. 179. Reference to Table 13 of the Appendix will give, on the other hand, information concerning the industries from which men combed out of industry by review of appeals between March, 1943, and April, 1945, were drawn. It will be observed by comparison of this table with the aforementioned table that many industries from which Category "A" men were combed out also received labour as a result of the release of men following action by Man-power Officers and Armed Forces Appeal Boards. This is explained largely by the release of " Necal " (3rd Division) personnel and their subsequent remobilization as the 1944-45 farming season waned, and by the release, on the initiative of District Man-power Officers, of down-graded men, as well as the release of long-service repatriates, whoso return to industry has enabled the release to the Forces of Category " A "men. Table 12 of the Appendix gives the conjugal status of the 11,219 men referred to in Table 13—i.e., those released after review of appeals—as well as of 3,769 other men made available during the same period at the stage of first appeal. (iii) Category " A " and Grade I Men aged Twenty Years and under, at present held under Appeal 180. As at the end of February of the current year (the last date within the year reviewed on which figures are held) the total number of Grade I men under twenty-one years of age (including 149 under twenty), together with the total number of Category "A" men held on appeal, was 28,441. In addition to this, some 2,500 men were held on grounds of demonstrable essentiality in the coal-mining, ships' personnel, ministers of religion, and police groups. The Category "A. " men totalled 26,910 of the 28,441. (Note. —The definition of Category "A " applies to Grade I men aged twenty-one to thirty-five years inclusive with not more than two children and who have not had three or more years overseas service. Grade I men under twenty-one years of age are not liable for overseas service until they reach twenty-one before December, 1944, the definition of Category "A" extended to Grade I men aged twenty to forty years inclusive with not more than three children.) 181. The reserve of man-power held under appeal in essential industry might at first sight be considered a prolific source of further man-power for inclusion in the replacement drafts and Air Force overseas establishments. However, if Table 9of the Appendix is scrutinized, it will be found that the industrial distribution of the 26,910 Category "A" men held as at the end of February is such that the scope for considerable further withdrawal is very limited. Of the industries which were important holders of Category " A " man-power as at the end of February, farming, with over 13,000, is by far the most important industry affected. Bush-felling and sawmilling and afforestation with over 1,100, building and construction with over 1,000, transport and communications with over 3,000, secondary industry with 2,800, and public administration and professional services with over 1,000 explain the majority of the reservations. (iv) Reservation of Scientific, Professional, and Technical Workers and Students 182. The Department has found it necessary, in order to ensure the uniform screening of manpower in scientific, professional, technical, and student fields, to provide special machinery. As far as scientific workers are concerned, the Department has received valuable advice, the benefit of which has been extended to Armed Forces Appeal Boards, from the Director of Scientific Development ; while the Health Department has co-operated with the National Service Department in the consideration of cases of doctors, dentists, and nurses and their most effective utilization either in the Forces or in civil practice. In the cases of technical workers, Man-power Utilization Councils have yielded valuable advisory service to the Department, which has, in turn, advised Armed Forces Appeal Boards. 183. In the cases of University students, the Department had early found it desirable to establish special machinery to consider the desirability of postponing the call-up of such students. Following a War Cabinet decision, students undertaking full-time courses in medicine, dentistry, engineering, science (including agricultural and veterinary science), and architecture are eligible to be considered for exemption from their obligations to the Armed Forces or to industry. Mining engineering was formerly included, but as there is at present little scope for the engagement in New Zealand of men holding the A.O.S.M. diploma, mining is no longer an approved subject for exemption. Obviously the purpose in withholding students from mobilization in either the military or the industrial field has been that they will on graduation, be able to make a greater contribution to the public interest either in the Forces or in industry. 184. Every student attending a University college who attains the age of twenty during the academic year is required to submit an application through his University college for reservation. Each application is dealt with on its merits, consideration being given to age, medical grading, and academic performance. Approvals are for the year in question only, and it does not necessarily follow that if an approved student passes his annual examination he will automatically gain approval for the,ensuing year. During the year ended 31st March, 1945, 20 per cent, of science graduates from each University college were permitted to proceed to their Honours course on a full-time basis. Others have applied on graduation to transfer to medicine, but owing to the heavy requirements of the Armed Forces and the demand for industrial specialists, such graduates, except in extraordinary circumstances, have not been permitted to so transfer. 185. The Department is indebted to the Students Advisory Committee, which assists in an advisory capacity in dealing with students' applications. This Committee is comprised mainly of University Professors and representatives of the Director of Scientific Development, the Director of Education, and the Public Service Commissioner. Other interests may be represented in dealing with particular claims of students—e.g., the Directors of the agricultural colleges when dealing with agricultural students.

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SECTION VI.—CONSCIENTIOUS OBJECTORS AND THE SPECIAL TRIBUNAL (i) Appeals heard 186. The Department's 1943 report details the procedure followed by the nine authorized Armed Forces Appeal Boards in dealing with appeals on the ground of conscientious objection. It also explains the establishment of a Special Tribunal (late 1941) to adjust the earnings and conditions of employment of those appellants whose appeal had been allowed or dismissed subject to non-combatant service in order to ensure that none found himself in better financial circumstances than the serviceman and that all performed work of national importance. 187. To date 5,117 appeals against military service on the ground of conscientioi« objection have been lodged. Of those, 944 have been withdrawn or struck out (because the appellant was Grade IV) or dismissed for want of prosecution. Of the remainder, 1,096 were adjourned sine die on grounds of public interest or otherwise, leaving a total of 3,077 appeals dealt with on the ground of conscientious objection after other grounds had been disposed of. 188. Of these 3,077 appeals heard, 606, or 19-7 per cent., were allowed ; 1,226, or 39-8 per cent, were dismissed subject to non-combatant service ; and the remainder of 1,245, or 40-5 per cent., were dismissed outright. 189. This information is statistically summarized in Table 10 of the Appendix. (ii) Activities of the Special Tribunal 190. The Special Tribunal (comprising three members working independently) has continued to discharge the functions described in previous reports. As at 31st December, 1944, it had under its jurisdiction a total of 572 cases of conscientious objection. Table 11a of the Appendix contains a conjugal status and age group classification of this number. 191. After consideration of the usefulness of the work performed by these objectors and adjustment in this respect where it has been necessary, the Special Tribunal has been able to turn the industrial services of these men to good account. Table 11b of the Appendix gives particulars of the main occupational groups from which the total of 572 objectors under the jurisdiction of the Tribunal have come. As will be seen from it, most main sections of the community are represented. 192. In 500 of the 572 cases the Special Tribunal has found it necessary to make an order for the appropriation to the Social Security Fund of a portion of the income of the objector (thereby reducing him to the same financial status as the ordinary serviceman). 193. An annual yield of £5,54-7 in compliance with the orders of the Tribunal has been made to the Social Security Fund by objectors. 194. Table 11c of the Appendix gives the number of objectors falling into each of eight graded payment classes. SECTION VII.—THE DETENTION OF DEFAULTERS AND THE ESTABLISHMENT OF REVISION AUTHORITIES (i) Sources and Numbers of Defaulters 195. It was mentioned in the Department's 1943 report that about one-quarter of the conscientious objectors whose appeals are either dismissed outright or dismissed subject to non-combatant service refuse service. To deal with their cases and those of men who refused service without lodging an appeal on grounds of conscientious objection, the first defaulters' detention camps were established in October, 1941—as discussed in Section I of Part I of this report. 196. As in the case of conscientious objectors, defaulters have been drawn from a wide range of occupations. Eeligious objectors, political objectors, and free thinkers have been most noticeable among detainees. 197. To date 780 defaulters have been dealt with in the detention camps. These have been disposed of as indicated hereunder :— (a) At present in defaulters' camps .. .. .. . . .. 608 (b) Transferred to prison .. .. .. .. .. 45 (c) Transferred to Armed Forces (of their own volition) .. .. 64 ((I) Temporarily released on medical parole .. . . .. . . 9 (e) Temporarily released on parole for special reasons .. .. .. 9 (/) Transferred to mental hospitals .. .. . . .. .. 3 (g) Escapees still at large .. .. .. .. .. 19 (h) Discharged, medically unfit .. .. .. .. .. 16 (i) Discharged, for other reasons .. .. .. .. .. 3 (j) Deceased .. .. .. .. .. .. .. .. 4 780 (In addition, thirteen defaulters went into the Army after serving their initial prison sentences and did not reach a detention camp.)

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(ii) The Management of Defaulters 198. In accordance with the regulations, defaulters are detained " in such place of detention and under such conditions as the Minister from time to time thinks fit." The conditions of detention are not as severe as those which necessarily apply to established penal institutions, but the camps are substantially less attractive than Army life, and certainly not open to the inference that defaulters' detention provides an attractive alternative for those who refuse military service. Possibly the most valuable result of the detention scheme has been its deterrent effect upon others. Within the regulations the detention of defaulters has proceeded in accordance with the following principles :— (a) Segregation: (b) Useful occupation: (c) Strict discipline : (d) Provision of social amenities— providing for an orderly community, maintaining the essentials of decent, healthy living, and mental and physical occupation. 199. Apart from the maintenance of good order and discipline, the cleanliness of the camps and the assurance of satisfactory work by the inmates, the Department's policy has been to provide adequate food, simple but liveable sleeping accommodation, and general community rooms. (iii) The Cost of maintaining Defaulters 200. For the period October, 1941, to the 31st March, 1944, the capital expenditure involved in the establishment of the camps was £99,302, while the operational expenditure for that period amounted to £219,054. While the capital expenditure.represents a large figure, it is pertinent to remark that the various camps had to be built and organized from nothing, and to provide an organization for the detention, under prescribed conditions, of 1,000 defaulters and staff. The establishment expenditure was increased by the fact that the camps were built in remote localities, resulting in high transport and building costs, and also by the policy, dictated by necessity, of redistributing the men to smaller camps. The established camps, however, represent permanent assets with a utility value to the Departments concerned. 201. At all times it has been the policy of the Department to reduce operating-costs to a minimum, but certain relatively heavy items of expenditure have been involved because of the very nature of the camps themselves. For instance, dealing with the question of staff personnel, the difficulties involved in restraining men of the defaulter type and the impossibility of engaging experienced officers have necessitated the employment of a much larger staff than would otherwise have been the case. 202. Particular attention has been given to ration costs, and in this connection the costs of feeding an inmate in a detention camp compare more than favourably with the costs of maintaining personnel in other establishments. In the last returns available the various camps show food Costs per man per day as follows : Hautu, Is. 9Jd. ; Shannon, Is. Bd. ; Whenuaroa, Is. 3|d. ; Maramarua, Is. 10|d. ; Balmoral, Is. 7|d. ; Matanuku, Is. 6d. ; Galatea, Is. sd. ; Oio, Is. B£d. ; Puketapu, Is. 7|d. 203. As already indicated, a considerable amount of the work performed for other Departments has not been assessed in value, for the reason that in the first place the services of the defaulters were offered to the Departments, in some instances without any consideration as to cost, the main issue being to hold the defaulters somewhere in detention and usefully employ them on work of public importance. It has been argued that the camps should be self-supporting, in that the value of the work performed by inmate labour should at least equal the costs of operating the camps, particularly in view of the fact that the inmates themselves received only a token payment for the work they do. This argument, however, is fallacious for the following reasons : —■ (a) That the labour in the camps is not free and has not therefore the usual incentive and normal output. (b) That a large proportion of the labour has to be utilized for the maintenance of the camps themselves. (c) That, in proportion, because of the difficult nature of the camps, a large staff of overseers and patrolmen is necessary. (d) That the majority of the inmates employed arc neither experienced nor fitted for the work they are doing. 204. Furthermore, in accordance with the Government policy to place military defaulters under restraint the cost of maintaining them could not be avoided, whether they were detained by the military, prison, or other authofities. (iv) Establishment of Revision Authorities 205. Subsequent to 31st March, the date of this report, War Cabinet decided on 6th June to appoint Mr. A. H. Johnstone, K.C., and Mr. W. H. Woodward, S.M., to be Revision Authorities and to have power to review the cases of all inmates of defaulters' detention camps. 206. The following report on the circumstances giving rise to the appointment of such authorities and the scope of their functions and powers is accordingly appended to this year's report of the National Service Department For some time there has been apparent a need for a judicial authority to review the cases of detainees and, where justifiable, mitigate the severity of their treatment. This has not implied any tendency to relax the punishment of unconscionable defaulters. It has merely implied recognition of the probability that the New Zealand appeal procedure, more summarily and hastily applied than that of Great Britain and Australia, has done injustice in some cases of genuine conscientious objection. In particular, concern has been caused by the serious lack of uniformity in the decisions of Appeal Boards which have dealt with the appeals of conscientious objectors, and by the absence of any further appeal rights such as are afforded in both Britain and Australia. The closely observed conduct of a number of detainees over lengthy periods of detention has reinforced the belief that a number of genuine objectors might have been harshly treated.

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In New Zealand the appeals of all conscientious objectors have been dealt with by one of nine regional Armed Forces Appeal Boards, which have, together with other Boards, also dealt with appeals against military service on the grounds of status, public interest, and undue personal hardship. No further right of appeal has lain with conscientious objectors after a decision on their case has been made by the appropriate Appeal Board. Appeal Boards have followed the policy of disposing of appeals 011 the ground of conscientious objection in one of three ways. They have been : — (1) By allowed of the appeal, in which event two conditions have automatically applied, viz.— (a) That the appellant remain in, or take up, such employment as directed by the Special Tribunal: (b) That the appellant pay to the Social Security Fund any remuneration in excess of what he would have obtained as a member of the Military Forces. (2) By dismissal of the appeal subject to the appellant performing non-combatant service with the Armed Forces. In such event the appellant has been subjected to mobilization but has usually been drafted to ambulance, &c., units. (3) By outright dismissal of the appeal followed by call-up for service with the Forces. In such event the appellant has either accepted service, whereupon he has been posted to a non-combatant unit where requested, or has refused service, whereupon he has been charged in the Magistrate's Court with failing to report, has been sentenced to imprisonment for a period up to three months, after which he has been committed to detention camp, where discipline has been strict, work hard, and food and accommodation less attractive than that prevailing in military camps. Inmates of detention camps mainly comprise men who have refused service after unsuccessful preferment of an appeal, although a number are men who have disdained to appeal. Concerning those persisting in their refusal to serve, no distinction has been made between those who have persisted out of moral conviction and those who have merely obdurately avoided service. Appeal Board practice has varied so much that the appeals on the ground of conscientious objection which have been allowed have ranged from about 14 per cent, in the case of one Board to 33 per cent, in that of another. The average percentage of appeals allowed to date has been 20 per cent. Even if every allowance is made for the particular aspects of different cases, the conclusion that the lack of uniformity in decisions may unjustifiably have disadvantaged some sincere objectors is difficult to avoid. Further colour is lent to this conclusion by a remark of a representative of the Returned Services' Association who has himself been closely associated with Appeal Boards and who recently led a deputation to the Acting Prime Minister on the subject. He remarked " that mistakes may have been made, and from his persona] knowledge there might be as many as ten in the Wellington district in detention whom he would class as conscientious objectors." His association, together with other responsible organizations and individuals, has from the outbreak of war repeatedly affirmed its agreement that a person called up for military service should be afforded the opportunity to appeal against such service on the grounds " that he conscientiously objects to serving with the Armed Forces." The desirability or otherwise of establishing Revision Authorities thus turns upon one issue and one alone ; that is, whether or not there are cases of genuine conscientious objection which have been dismissed by Boards. Of this, in the light of the wide range in Appeal Board decisions and the absence of a further appellate authority, there can remain little doubt. Study of both the British and Australian practice in dealing with conscientious objectors strengthens the belief that the absence of an appellate authority in New Zealand has resulted in the detention of a number of men who have been genuine in their objection to service. It also reveals the more stringent nature of New Zealand's handling of the whole question of conscientious objectors. In Great Britain the hearing of the appeals of conscientious objectors is the responsibility of Local Tribunals specially created for this purpose. These Tribunals, consisting of a Chairman and six other members, do not, as is the case with Appeal Boards in New Zealand, deal with appeals on hardship or public interest grounds. Appeals could be disposed of in any of four ways, viz.— (1) By allowal outright. In this event the appellant continues his normal civilian life without restriction of any kind. There is no counterpart to this in the New Zealand procedure.

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(2) By allowal subject to direction to specified civil work. In this event no provision for contribution of excess earnings to any public fund is made. In Now Zealand all appellants whose appeals are allowed are subject to direction and to the contribution of excess earnings. (3) By dismissal subject to non-combatant service, as in the case of New Zealand. (4) By outright dismissal, as in New Zealand. An appellant aggrieved by the decision of the Local Tribunal has a right of appeal to a Special Appellate Tribunal consisting of a Chairman and four other members. The Chairman and any two members may sit on any particular case and can amend or reverse the decision of the Local Tribunal. By the end of 1943 there had been in Britain a total of 57,329 appeals on grounds of conscientious objection. A total of 17,657 appellants who considered themselves aggrieved by the decision of the Local Tribunal appealed to the Appellate Tribunal, which varied the decision of the Local Tribunal in 8,909 cases. By the same date, 54 per cent, of appeals heard by Local Tribunals or by the Appellate Tribunal had been allowed, as compared with the 20 per cent, of appeals allowed by New Zealand general Armed Forces Appeal Boards. Twenty-five per cent, of appeals were dismissed subject to non-combatant service, as against 40 per cent, in New Zealand, while 21 per cent, of appeals were dismissed outright, compared with 40 per cent, in New Zealand. In the oases of persistence in refusal to serve notwithstanding the outright dismissal of an appeal, " a sentence of imprisonment of three months or more is regarded as substantial " according to a communication dated 15th March, 1944, received from the British Ministry of Labour and National Service. Unlike the New Zealand objector, who is committed to detention on the expiry of his prison sentence, the conscientious objector in Britain is free to resume his ordinary civilian life on completion of his prison sentence and without any restrictions on his earnings. In Australia a person appealing against military service on the ground of conscientious objection has his appeal heard before a Court of summary jurisdiction—e.g., a Magistrate's Court. If he is aggrieved by the decision of that Court he has the right of appeal to a higher Court. Thus Australia, like Great Britain, provides a right of appeal which New Zealand does not. An appellant who persists in his refusal to serve notwithstanding the dismissal of his appeal is sentenced to a term of imprisonment, generally three months, after which he is subject to man-power direction by the civil authorities. As in the case of New Zealand, he is required to forfeit all earnings in excess of a private's pay. Comparison of the procedures in force in the three countries makes it clear that in Britain and Australia the legal machinery provided makes improbable a wrong decision in the case of the genuine objector. In any event, regardless of the nature of the decision, the determined objector (and the genuine objector is most often a determined man) can avoid service without greater penalty than a short prison sentence and, in the case of Australia, forfeiture of excess earnings. In New Zealand not only does the legal procedure not adequately provide against the possibility of wrong decision, but it sentences persistent objectors— genuine and bogus alike—to indefinite detention. After the .most serious consideration of all these circumstances, the Government decision to establish the two Revision Authorities referred to at the beginning of this Section of the report was reached. Even the establishment of these authorities will not liberalize the treatment of conscientious objectors to the extent that the British and Australian procedures have done. Specifically, the Revision Authorities have not been given the power of the Appellate Tribunal in Great Britain to amend or reverse the decisions of the Armed Forces Appeal Board. They may not change the status of a defaulter to that of a conscientious objector whose appeal has on reconsideration been allowed. Their function is limited to endeavouring to ascertain whether any of the inmates of detention camps were, because of the variation in Appeal Board decisions and the absence of an appellate authority, committed to indefinite detention notwithstanding their now demonstrable sincerity of conviction. In such cases the power of the Revision Authority is confined to permitting the man to be released from detention on parole, under strict man-power control, and subject to forfeiture of all remuneration in excess of the pay of a private in the Army. The Revision Authorities have no power to lighten the severity in treatment of defaulters who do not clearly come within this class.

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SECTION VIII. —WOMEN'S WAR SERVICE AUXILIARY (i) Strength of Auxiliary and Distribution of Members 207. Section I of Part I of the report describes the establishment of the Women's War Service Auxiliary as one of the, national service organizations brought into being in 1940. 208. The functions of the Auxiliary were defined at the outset as— (а) To provide a national organization of women and girls and thereby further the war effort. (б) To co-ordinate and direct the war effort of women to prevent overlapping. (c) To compile a register of the woman-power of the Dominion. (d) To promote activities and provide training facilities for women and girls who have not been able to obtain such training facilities through other organizations. 209. The register of woman-power compiled by the Auxiliary included the names of all women volunteering for work calculated to assist the war effort. 210. The strength of the Women's War Service Auxiliary and affiliated organizations reached a peak in 1942 of 75,000. (ii) Fields of Contribution 211. The Women's War Service Auxiliary has performed valuable work in organizing a number of groups of voluntary workers from its register. 212. Land Group.—This group (500 strong as at 31st March, 1945) has been mainly concerned with the growing of vegetables in plots which have been lent to the Auxiliary for the duration of the war. Groups of women growing vegetables in these plots have donated the vegetables to Service clubs, and in some districts vegetables have been sold, the profits having been paid into patriotic funds. In addition, the women working in the Land Group have been instructed in the cultivation of vegetables and seedlings. 213. Clerical Section. —In the Clerical Section of the Auxiliary, 10,000 members of the Auxiliary are included. This section performed the bulk of the clerical and typing work for the Home Guard and Emergency Precautions Service, and also performed considerable work for the Service arms. Clerical Group members for long periods attended nightly at Army offices and at Service camps to overtake arrears of clerical work. The clerical and typing contribution of the Auxiliary members has played an important part in the mobilization of New Zealand's military man-power. 214. Canteen Section.- -Members of the Auxiliary included in this section numbered 20,000. From this large number of volunteers, women have been drawn to staff canteen huts at military camps and to staff Service clubs and hospitals throughout the Dominion. During 1942 and 1943, when there was such a large number of New Zealand and Allied troops in New Zealand, the work done by members of the Canteen Section was most valuable. 215. Members of the Canteen Section have continued to perform their work at New Zealand camps throughout the past year and have assisted greatly in catering for returning drafts of ex-servicemen. In addition, members of the Canteen Section have organized and staffed the Swan Club in Auckland, which is a club established for Service personnel of the W.A.A.F., W.R.N.S., and W.A.A.C. 216. Hospital Group.—The total number in this group of the Auxiliary at the end of March was 2,000. Women from this group have been called upon to do visiting hospital work and to train as hospital aides in kitchen and laundry work. Any hospital work not undertaken by the Red Cross or the Order of St. John or the regular hospital staff has been performed by the Hospital Group of the Auxiliary. The group has also done voluntary work for the Emergency Precautions Service and Hospital Boards, such as the admission of patients, telephone work, and clerical work, &c. 217. Obstetrical Group.—Numbering 250, the members of the Auxiliary in this group have made a valuable leisure-time contribution as obstetrical voluntary aides. In Wellington alone one group numbers 30 women, all of whom are engaged in full-time employment. It has become an established part of the nursing personnel of Government maternity hospitals in the city. 218. Sewing and Knitting Groups.—Members of the Auxiliary, irrespective of section, have organized themselves into sewing and knitting groups and have performed valuable work by knitting garments with home-spun wool and other wool for men of the Merchant and Royal Navy. 219. Signalling Group.—This group of the Auxiliary at the time of the Japanese invasion threat undertook intensive training in Morse and semaphore and greatly assisted the Home Guard and E.P.S. 220. Transport Group.—The women of the Auxiliary in this group at present number 5,000 and are trained in all sections of civilian transport. In most districts the members of the Transport Group have been seconded to the E.P.S. The Transport Group of the Auxiliary has been responsible in a number of districts for the collection of waste paper, and has been at all times on call for emergency-precautions work. In addition, the group has assisted the Army in voluntary driving and has taken a number of truck and car service convoys from point to point. 221. Other Work undertaken by the Auxiliary.—Until July of 1942 the Auxiliary was responsible for the recruitment of women in the W.A.A.C., and 600 women had been so placed as at that date. From that time, however, the recruitment of women by each of the three Service arms was undertaken directly, and the Auxiliary was not called upon to act further. 222. The Auxiliary has, in addition, assisted with national campaigns such as loans, bond sales, Patriotic Fund appeals, &c., and has also assisted the national effort by the manufacture of camouflage nets, by the encouragement of women to undertake first-aid courses, and by co-operation with the National Service Department in the allocation of women workers for work in linen-flax factories in the South Island. The W.W.S.A. also co-operates with the Department in maintaining contact with members of the Women's Land Service through its District Committees and attending to any welfare aspects which arise.

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SECTION IX.—CONTROL OF DEPARTURES FROM NEW ZEALAND 223. The mobilization of man-power within a country is, of course, the most important aspect of war organization, but the safeguarding of the man-power reserve by preventing the departure from a country of persons liable for military or individual service is an important corollary. 224. On the outbreak of war the Overseas Passengers Emergency Regulations were gazetted. Under these regulations, which are administered by the Department of Internal Affairs, no person of the age of sixteen years or over may, with certain exceptions, leave New Zealand for any other country unless in possession of a written permit issued by the Under-Secretary of Internal Affairs. 225.. Broad principles for determining, from the man-power aspect, the conditions under which applications for exit permits were to be approved were defined by War Cabinet early in the war. By arrangement with the Department of Internal Affairs, all applications for exit permits by persons who have military or industrial man-power obligations are referred to the National Service Department for recommendation, and no permit is granted in such cases without the approval of the Director of National Service. The recommendation of the Department is framed after consideration of the probable extent, if any, of the applicant's military and industrial obligations and the degree of importance attaching to the work which the applicant would be engaged in were the exit permit to be granted. The degree of hardship occasioned the applicant or other persons in the event of refusal of the permit is also weighed. 226. It has been the policy that the reasons advanced in support of any application for a permit must be of a strong and compelling nature. Shortage of transport facilities and rationing difficulties in the proposed country of destination are matters for the consideration of the Department of Internal Affairs, but they are borne in mind by the National Service Department when applications are under consideration from the man-power angle. 227. The present policy is to ease the burden of restriction as soon as possible and to withhhold approval only when the application would or might involve a loss of man-power which may be required for military service or is urgently required for essential or other important work. As a matter of Government policy, the applications of certain classes of applicants arc now approved as of right, but even in these cases the Department requires to be satisfied that the applicant is within the class in question and that there is no good reason for withholding approval in the public interest. Examples of favoured classes for exit permits are returned servicemen of this war who have completed their military obligations, particularly those who are offered a means of rehabilitation overseas ; wives and fiancees of Allied servicemen where the servicemen concerned have been repatriated to their normal place of residence ; evacuees from war zones who have enjoyed temporary asylum in New Zealand ; war widows desirous of making their home with relations abroad ; and persons not normally resident in New Zealand but who have been stranded in New Zealand owing to war conditions and who, in the case of males, have completed their military obligations, if any. PART lII.—INDUSTRIAL MOBILIZATION SECTION I.—CHANGES IN THE TOTAL LABOUR FORCE (i) The Pre-war Labour Force 228. The total labour force of New Zealand at the outbreak of war has been estimated at approximately 700,000. Since the total population at the same date was 1,630,000, something less than one-half of the population was engaged in gainful employment. Of the total of 700,000 workers, 520,000 were estimated to be males—thus approximately 180,000 women wore employed in industry at the outbreak of war. (ii) Wartime Changes in Total Labour Force 229. By the end of 1943 the total labour force was estimated to have contracted to 634,000 notwithstanding an estimated industrial inflow of a further 48,000 women, but by the end of 1944 the aggregate figure had increased to the estimated total of 655,000. This recovery was explained by the permanent or temporary release of servicemen from the Forces. 230. Estimated movements in the total labour force during the war are shown in the following table :—

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Labour Force. End of 1939. End of 1943. End of 1944. Males .. .. .. .. 520,000 406,000 435,000 Females.. .. .. .. 180,000 228,000 220,000 Total .. .. .. 700,000 634,000 655,000

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231. The dramatic agents in these changes have been movements in aggregate Armed Forces, absorption of juveniles and women, and postponed retirements of elderly workers. The total number of persons in the Forces at those dates quoted were 3,000, 129,000, and 102,000 respectively. By the end of 1944, 47,486 ex-servicemen and women had permanently re-entered industry, and 9,100 more men from the Pacific Division were held in essential industry until such time as they would be needed for service with the Middle East Division. (iii) The Future Working Population 232. In the absence of large-scale immigration, New Zealand's total labour force, but for one uncertain element, could be expected to advance but gradually on the pre-war figure of 700,000. This follows from the slowness with which the total population is increasing, although delayed marriages of ex-servicemen will at least temporarily stimulate the birth-rate. The one unpredictable element, the extent to which women will be employed, might, however, upset this forecast. Instead, it is feasible that the wartime industrialization of women will not only persist, but in the post-war years give way to a still wider industrialization. 233. Factors inviting the conclusion that the present total figures of female employment will in the long run not only recover the ground (estimated at 8,000) lost by it during the last twelve months, but also steadily advance, are as follows : — (a) The engagement of women in industry is riot a wartime development alone, but was already significantly high (and fast increasing) before the war, and this tendency may be expected to continue. (b) Expansion of secondary industry in New Zealand has rested mainly on female labour, and, regardless of expanding opportunities for men, a pari passu demand for female labour can be expected. (c) Women workers have habituated themselves to a new level of consumption expenditure and will balance the loss of earnings that disemployment would involve, somewhat carefully against domestic considerations. (d) The majority of the women at present serving in the Forces will return to industry on demobilization. SECTION lI.—THE DEMAND FOR LABOUR (i) Pre-war Labour Shortages 234. Although the level of total employment had risen considerably during the four immediate pre-war years, it was still necessary to administer various employment-promotion measures. The ascertainable data of that period suggest that increasing purchasing-power and redistribution of national income were augmenting the total number of persons employed, but were doing so somewhat unevenly. For example, the major increase in total employment was due to the increasing absorption of women workers by a number of the rapidly expanding secondary industries, while a reverse tendency was taking place in a number of industries which, due to cost pressures or to the difference in male and female wage rates, were dispensing with the services of male workers. These workers had increasingly to be provided for by absorption on employment-promotion schemes, on public works, and, as it happened, by the State services, which, from that time on, were becoming large employers of temporary workers. 235. Notwithstanding the general employment position, there had from 1936 onwards been definite shortages of labour in several industries. These shortages were almost entirely confined to skilled workers in the building and engineering industries, as well as to professional and technical workers of different classes. By 1938 the shortage of building and engineering tradesmen had become so acute that several hundreds of tradesmen of both types were imported by the Government from Great Britain and Australia. In addition, the labour force of the building industry had been augmented by several hundreds of skilled workers as a result of the State-subsidized adult apprenticeship scheme. Despite these accretions to the skilled labour force in the building and engineering industries, there remained a marked shortage of almost all tradesmen in both of these industries. It has been estimated that in 1939 several thousand building tfadesmen (all classes were affected) and a somewhat smaller number of engineering tradesmen could have been absorbed. 236. At this time, too, a farm-labour shortage, particularly in the dairy-farming branch of the industry, had made itself felt. Since the recovery in 1935, a farm-labour problem had shown itself, and by 1938 and 1939 the number of unsatisfied vacancies for farm workers at the peak of the season was well over the thousand mark. So far as the farming industry was concerned, however, the labour position was better than this figure would indicate, because the total number of workers offering was in excess of the vacancies. The difficulty was that the surplus of labour was to be found in the South Island or among the ranks of married men, for whom accommodation would be required. The preference of farmers, particularly of dairy-farmers, was for experienced single men or inexperienced youths, in respect of whom a subsidy under the farm-training scheme then in existence would have been forthcoming. 237. The pre-war employment picture was, then, one of heightened total employment. Skilledlabour shortages were, however, noticeable in the building and engineering industries as well as in certain manufacturing industries, while certain professional workers were in short supply. (ii) Wartime Shortages 238. It was not until the middle of 1940, by which time some thousands of volunteers had been absorbed by the Forces, that a general shortage of labour became noticeable, and not until 1941 that the general shortage presented difficulty. By this time, however, the industries in which pre-war shortages were noticeable were in most difficult straits, particularly the engineering and footwear manufacturing industries. In order to meet the labour problem in these two industries, the

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State-subsidized auxiliary Trade Training Scheme, to train engineering and boot- and shoe-manufacturing tradesmen, was launched in 1939 and continued to impart short practical courses to several hundreds of engineering and footwear trade trainees until in 1944 the training centres so established were taken over by the Rehabilitation Board. 239. By 1941, too, the farm-labour shortage which had been noticeable before the outbreak of war had become a serious one and the then Employment Division of the Department found it necessary to conduct a campaign for the subsidized placement of inexperienced farm workers. 240. By September of 1942, nine months after the Industrial Man-power Emergency Regulations were gazetted, the main industries in which verified vacancies for 500 or more male workers existed were : — Farming . . . . .. . . .. . . .. 997 Building and construction .. .. .. .. .. 563 General engineering .. .. .. .. .. .. 527 In addition to these industries, the sawmilling and bushfelling industry notified 446 vacancies ; food and drink manufacturing industries, 281 ; and textiles and footwear manufacturing, 181. 241. In addition to these vacancies for male workers, the most important notified vacancies for females were : textiles and footwear manufacturing, 255 ; other secondary industries, 318 ; hotels, restaurants, &c., 244 ; and hospitals, 307. 242. During that year it was necessary to release a number of home servicemen for industrial employment, and some 16,300 workers were returned to industry. By March, 1943, this number would be increased to 22,800 if regard were had to a further 6,500 releases through the rehabilitation procedure. Notwithstanding this, substantially the same industries as those quoted above were still showing vacancies in the neighbourhood of 4,389 for males and 3,370 for females. General engineering and textile and footwear manufacturing on the male side, and textile and footwear manufacturing, hotels and restaurants, and hospitals on the female side, accounted for the increase in the total of unsatisfied vacancies. By March of 1944, the time at which the decision to return volunteers from the Pacific (Third Division) for work in essential industries was reached, the same industries presented shortages substantially comparable to those which had obtained a year previously, except that on the male side vacancies in building and construction, reflecting the giant programme of defence construction, and on the female side vacancies in food and drink manufacturing, reflecting the heightened demand for foodstuffs for the Forces, had been increased by some hundreds to the figures of |1,140 and 1,459 respectively. 243. Despite the return and direction to essential industry of some 9,500 men from the Third Division, the comb-out of further Category " A " men for overseas service, coupled with additional labour requirements for increased production, and unavoidable wastage of personnel through retirements, ill health, &c., the recorded vacancies in industry have now advanced considerably on the total of 8,067 recorded as at March, 1944, to the figure of 11,382 as at March, 1945. The increase in vacancies unfilled is the more noteworthy when it is pointed out that the figures of vacancies quoted for the previous years included all vacancies notified by employers, whereas the vacancies quoted for March, 1945, include only those vacancies which have been both verified as existing and approved by District Man-power Officers as meriting filling. The total of 11,382 vacancies thus arrived at is made up of 4,100 vacancies for males and 3,205 vacancies for females in work which is not only essential but has been regarded as being of such high priority as to warrant urgent filling. The remaining vacancies of 2,490 for males and 1,587 for females relate to vacancies which have been approved for filling and regarded as meriting filling, having regard to the general man-power situation, but have hot been considered sufficiently urgent to rank as high-priority vacancies. In addition to both classes of vacancies, many vacancies in less essential and non-essential employment undoubtedly exist, but as for practical purposes no action is taken to fill these vacancies, no account is taken of them. It is likely that vacancies in this class number some further thousands. 244. Recorded vacancies for 250 or more in high-priority industries as at 31st March, 1945, include —- Males — Farming .. .. .. .. .. .. .. 456 Sawmilling and bushfelling .. .. .. .. .. 388 Building and construction . . .. .. .. .. .. 1,258 General engineering .. . . .. .. . . .. 654 Females — Farming .. .. .. ■ ■ . ■ .. .. 266 Woollen and knitting mills .. .. .. .. . . 270 Clothing and other textiles .. .. .. .. .. 1,024 Hospitals .. .. .. .. .. .. .. 444 Hotels and restaurants .. .. . . .. .. .. 265 245. Approved but non-priority vacancies numbering over 250 were as follows— Males — Building and construction.. .. .. .. .. ..578 General engineering .. . . . . .. .. . . 609 Females — Clothing and other textile manufacturing .. .. .. .. 366 Other secondary industries .. .. .. .. .. 257 Hotels and restaurants .. .. .. .. .. 411 Table 46 of the Appendix classifies on an industrial basis recorded vacancies at quarterly points during the year ending 31st March, 1945. 246. The war developments have thus served to emphasize the shortage of skilled workers which was evident in 1939. This has been particularly true of the building and engineering industries as far as males are concerned, and of the woollen, knitting, clothing, and other textile manufacturing industries in the case of women. To these shortages has been added the present drastic shortage of female workers in hospitals, mental hospitals, hotels and restaurants, and various manufacturing industries. 247. Particular shortages such, for example, as in transport and communications, coal-mining, &c., have from time to time manifested themselves, but man-power action has for the most part retained the labour force in these industries.

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248. The pre-war shortage of professional workers, including doctors, dentists, engineers, surveyors: chemists, and general scientific workers, has been greatly increased under the pressure of war. With the return to peace this situation should ease, but in so far as certain of the professions are concerned there is obviously room for a material augmentation of personnel. 249. Seasonal farm-labour shortages, always something of a problem in New Zealand, have been a source of continual concern to the Department during the war years. Fields in which shortage of seasonal farm labour has been most marked have been cropping, shearing, hops and tobacco harvesting, and general harvesting. Successful harvesting of the farm crops of New Zealand during the war years has been made possible only by the organization of special seasonal farm-labour schemes. These schemes, dealt with at greater length in a subsequent Section of the report, embraced the services of mobilized Army personnel and personnel temporarily released from the Forces, school-teachers, university students, and even a large number of school-children. SECTION 111. WARTIME CONTROL MEASURES (i) Declarations of Essentiality 250. Industries or individual undertakings in which it became particularly necessary to hold or reinforce the labour content were declared to be " essential " for the purposes of the Industrial Man-power Emergency Regulations. The first declarations were made in January, 1942. As war production mounted and as further mobilizations decreased the labour force available to industry as a whole, it became necessary to extend the coverage of declarations not only to protect actual war production, but also to protect vital ancillary production and services, until by 31st March, 1944, it was estimated that approximately 255,000 workers were employed in undertakings declared essential. From Ist April, 1944, to 31st March, 1945, no appreciable change has taken place in the extent of this coverage. 251. As stated, the objects in declaring undertakings essential wore twofold. First there was the need to hold the existing labour force together to the maximum extent possible. To this end no terminations of employment in such undertakings could be effected by either employer or worker until the consent of a District Man-power Officer was obtained, and such consent was given only where there were adequate grounds for terminating. This requirement of obtaining consent also enabled control to be exercised over the work destinations of those workers permitted to terminate. 252. The second main object in declaring undertakings essential was to prepare the way for a compulsory direction of labour into such concerns. Obviously labour could not be directed to an employer whose other employees remained free to leave at will. In addition, there had to be some satisfactory minimum guarantees as to remuneration and working conditions before persons could be up-rooted from their normal occupations and compulsorily directed into essential work. Declarations of essentiality, which carried with them an investigation of the undertaking and an obligation on the employer to provide satisfactory conditions, were therefore the necessary prerequisite to the exercise of powers of direction. (ii) Registration for and Direction to Work of National Importance 253. The Industrial Man-power Emergency Regulations made every civilian liable to direction to work of national importance, irrespective of age or sex. Such power to direct individuals can necessarily only be exercised after locating those individuals. There have, of course, been many cases where individuals have come to notice as a result of particular circumstances, such as through applications to terminate employment, through appeals against military service, &c. The large-scale diversions of labour necessary to maintain a balanced war effort could not, however, be met by the direction (where appropriate) of persons thus fortuitously coming to notice, and the successive registration of various age-groups in the community was therefore used as the means of locating in sufficiently large numbers individuals liable for direction. 254. Table 21 of the Appendix lists the various Registration Orders and the classes of workers affected, while Table 22 analyses the total registrations of women on a district and conjugal status and age group basis. Registrations were effected on a district basis, each person being required to register with the District Man-power Officer in the district in which he or she was at the time resident, and any subsequent change of address had to be notified. 255. On the registration of each group, male or female, the particulars shown on the registration forms were checked and the registrants subdivided into various groupings according to whether or not they were likely to be available for direction to more important work. The personal interviewing of registrants then followed, those most likely to be available for direction being called in first. Where the registrant was not then directed, the case was set aside and brought up for further review from time to time. 256. As stated above, persons have been directed only to undertakings declared essential, except in a few special cases, and in the farming industry. (In these exceptions care has been taken to ensure that working conditions and guaranteed weekly remuneration are on a par with those required in essential undertakings.) As a result of this policy of directing only to essential undertakings, directed workers have had the benefit of the safeguards provided under declarations of essentiality. In addition, all persons compulsorily directed from normal permanent work are subject to the Occupational Re-establishment Emergency Regulations, which require the pre-direction employer to reinstate them on expiry of the period under direction. (iii) Restrictions on Engagement of Labour 257. To complete the effective control over man-power resources it was necessary, in addition to the two measures described above, to exercise a supervision over the inflow of labour into industries and thereby to ensure that man-power resources were not being squandered on unimportant work.

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The Employment Restriction Order has operated for this purpose. This Order requires engagements of labour within all important urban areas to be subject to the prior consent of the District Man-power Officer. It has been noteworthy that employers as a whole have not made applications for consent to engage labour for unimportant work, and the great majority of applications, even from undertakings not declared essential, have been of such merit as to warrant the applications being granted. (iv) Industrial Absenteeism Control 258. The Department has been concerned with securing an equitable spread of the heavy burden of wartime production and has therefore had to take cognizance of individual actions which threw an increased burden on loyal workers and which represented a clear breach of national wartime obligations. Consequently, provisions were incorporated in the Industrial Man-power Emergency Regulations whereby the person who deliberately absented himself from work without sufficient reason could be penalized by a deduction of up to two days' pay from wages, the deductions being paid into the War Expenses Account. The obligation was placed on all employers in essential undertakings to report any absence from work which was without leave or without any reasonable excuse known to them. This subject is discussed at greater length in Section XIII of this Part of the report. (v) Industrial Appeal Procedure 259. Every person directly affected by any decision or direction of a District Man-power Officer (including a decision to inflict a penalty for absenteeism) has a right of appeal to a Man-power Appeal Committee. SECTION IV.- THE REDISTRIBUTION OF LABOUR BETWEEN INDUSTRIES AND DISTRICTS (i) Estimated Industrial Distribution of the Total Labour Force 260. Any estimate of the distribution of the working population between industries must of necessity be approximate in character. Statistics of occupational distribution compiled as a result of the general census in 1936, as well as statistics of building, farm, and factory production compiled as far forward as 1943, do not give a reliable or complete picture of the distribution of the present labour force of New Zealand between the various industries. 261. With this qualification in mind, some conclusions concerning the industrial distribution of New Zealand's mau-power can be arrived at in the light of the particular data collected by the Department during the war years. It was as a result of this data that an estimate of the distribution of male and female labour between broad industrial groups was attempted in last year's annual report of the Department. Since that date some shift in the distribution of man-power as between the Forces, industry, and the non-working section of the population, as well as between the various industries, has taken place. The presumed change in distribution and consequences for the total labour force are shown in the following table, which gives estimated industrial content figures for each of the years 1939, 1943, and 1944. For each of these years, December is taken as the point on which the analysis is based. Again it is stressed that these estimates make no pretension to a high degree of reliability, but if the original calculations of labour content were substantially correct, the variations in distribution which have been progressively recorded would be reasonably correct.

Table showing Estimated Changes in Industrial, Etc., Distribution of Total Population, December, 1939, to December, 1944

32

December, 1939. December, 1943. December, 1944. Industrial &c., Group. Males. Females. Total. Males. Females. Total. Males. Females. Total. Industry— Farming ...... ~] f 143,000 10,000 153,000 152,000 9,500 161,500 Other primary .. .. 22,600 .. 22,600 24,000 .. 24,000 Building and construction .. 19,000 .. 19,000 21,000 .. 21,'000 Transport and communications 57,500 9,500 67,000 61,000 8,500 69'500 Secondary industries (including 77,300 39,400 116,700 85,000 35!000 120'000 power production and [>520,000 180,000 700,000«| supply) Commerce and finance, storage, 44,000 73,100 117,100 47,000 70,000 117,000 administration, professions, &c. Miscellaneous .... J 42,600 96,000 138,600 45,000 97,000 142,000 Sub-total .. .. 520,000 180,000 700,000 406,000 228,000 634,000 435,000 220,000 655,000 Non-working— Armed Forces overseas and in ~j • f 136,000 8,000 144,000 110,000 6,000 116 000 New Zealand (including casualties) Not gainfully employed— [>312,800 628,800 941,600 Juveniles .. .. 215,000 205,000 420,000 218,000 208,000 426,000 Old persons- .. .. 69,000 105,000 174,000 71,000 106,000 177,000 Others.. .... J [_ 45,000 306,000 351,000 46,000 322,000 368,000 Sub-total .. .. 312,800 628,800 941,600 465,000 624,000 1,089,000 445,000 642,000 '1,087,000 Total population .. 832,800 808,800 1,641,600 871,000 852,000 1,723,000 880,000 862 000 1 742~000 I ' ' '

H.—llA

262. It will be observed from this table that the main industrial groups that have experienced considerable additions of labour during the last twelve months are farming and secondary industries. In the latter class are included industries which have augmented their labour force during the last ten years to a remarkable degree. (Note. —One estimate, based on a very broad sample of thirty-seven industries suggests that, talcing the industrial content of recorded industries in 1929 as 100, there lias been a total increase in employment of 45 per cent. The accretion to male employment has been 24-6, and to female employment the remarkable percentage of 107-2.) (ii) Estimated Geographical Distribution of the Total Labour Force 263. Apart from the distortions peculiar to particular industries, it can be assumed that the geographical distribution of the working population is substantially comparable to the geographical distribution of the total population. On this view, dividing New Zealand into five zones, the industrial distribution of the population would reflect the population distribution, which is as follows :—

264. In recent years the expansion in population, and therefore industrial activity, has been most pronounced in the larger centres of population in the North Island, such as Auckland, Wellington, Lower Hutt, Hamilton, Palmerston North, but other secondary towns, notably Napier, Hastings, New Plymouth, and Wanganui, are now commencing to expand in industrial activity. 265. Contrary to widespread belief, man-power control measures have played an inconsiderable part in the geographical redistribution of man-power as between man-power districts. The widely held view that control has accentuated the depletion of population in the South Island is not supported by the results of directions away from home towns. What geographical redistribution has taken place as a result of man-power control has for the most part been confined to redistribution within each man-power district. 266. The concentration of war industry around Wellington and Auckland, the bases and camps used by New Zealand and Allied Forces, and the installation of military hospitals, &c., have all led to a greater demand for labour in these districts. This has been largely met within these areas with the assistance of voluntary transfers from elsewhere ; but directions have been used to some extent to ' maintain some essential industries and services. Men transferred north have comprised mainly building and constructional workers, hydro-electric workers, and some for the timber industry. Those going south have been almost entirely seasonal workers. The majority of women transferred have been required for hospitals, munitions, and tobacco factories. As a large part of the munitions industry and practically all the tobacco factories have been concentrated around Wellington and the Hutt, the direction of women to these districts has been larger than elsewhere. Hospitals for Allied Forces have also been concentrated round Wellington and Auckland. (iii) Direction Results 267. From the inception of industrial man-power control in January, 1942, until the 31st March, 1945, 168,612 directions have been issued by District Man-power Officers. Of these, 130,381 have been issued to males and 38,231 to females. Of the total number of directions issued to date, 149,533 have been complied with. The results of directions issued by Man-power Officers to date are analysed in more detail in Table 23 of the Appendix, while the monthly growth in the number of directions issued since March, 1944, is shown in Table 24. 268. A remarkable increase in the number of directions issued has been evident during the last twelve months, during which period no fewer than 78,154 of the total directions issued to date were issued. More detailed information concerning total directions issued and complied with, &c., is given in Table 23 of the Appendix. It will be noted from this table that at any given point of time there is a considerable number of directions issued but not complied with. The fact that, generally speaking, there are, at any one time, some 1,000 directions awaiting confirmation reduces the total number not complied with to a small fraction of the total complied with. In fact, the degree of compliance forthcoming from the public has been a remarkable feature of direction practice. 269. In explanation of the heavy direction programme of the last twelve months, it is mentioned that from July of 1944, Man-power Officers were particularly busy in the interviewing and direction of personnel from the Third (Pacific) Army Division. By November of 1944 some 11,000 members of this Division had been interviewed and oyer 9,500 directed to essential employment. By that time the

3—H. 11A

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Zone. Males. Females. Total. _ Northern North Island, including Whangarei, Auckland, Hamilton, 301,300 320,200 621,500 Paeroa, Rotorua, Taumarunui, and Gisborne Man-power Districts Southern North Island, including Napier, New Plymouth, Wanganui, 239,900 254,900 494,800 Palmerston North, Masterton, LoVer Hutt, and Wellington Man-power Districts Northern South Island, including Blenheim, Nelson, Christchurch, 144,000 153,000 297,000 Ashburton, and Timaru Man-power Districts West Coast, South Island, including Westport and Greymouth 19,800 21,100 40,900 Man-power Districts Southern South Island, including Oamaru, Dunedin, and Invercargill 109,500 116,300 225,800 Man-power Districts Totals .. .. .. .. .. .. 814,500 865,500 1,680,000

H.—lla

first of the long-service personnel of the Second Division who had been repatriated were becoming available for direction to industry, and thenceforth the direction figures are bulked by the inclusion of formal directions to these men, notwithstanding that in many cases directions were issued only with the full consent and agreement of the ex-serviceman. 270. In addition, the rapid and far-reaching comb-out of Category " A " men held on appeal, by the rigorous review conducted by Appeal Boards', threw an additional responsibility for active direction policy on to District Man-power Officers. In effect, then, to man the various replacement drafts required for despatch overseas, District Man-power Officers have, during the latter portion of the last twelve months, been obliged to apply to civilians a somewhat more rigorous direction policy i,than would otherwise have been followed. Despite this, the co-operation of workers and employers has enabled the realization of a high degree of success. 271. The industries which have benefited most from direction, as would be expected, have been those which were covered by a declaration of essentiality or, as in the case of farming, although not covered by such a declaration, nevertheless of primary importance. Table 25 of the Appendix gives a broad industrial group classification of the industries which have benefited most by direction during the year ended 31st March, 1945. The directions so depicted have been subdivided to distinguish between directions occasioning circulation of labour within each industrial group itself, circulation of labour as between industrial groups, circulation of labour as from the Armed Forces to industry, and the circulation of labour to industry from students and other non-working sections of the population. The two outstanding features of direction activity during the twelve months under review have been the large number of males from the Forces (20,045) directed to high-priority industries, and the almost comparable figure of 19,351 males directed from less essential to more essential industries. It is clear from these figures alone that industrial man-power control during the last twelve months has played an important part both in the manning of essential industries and services and in the mobilization of man-power for the Armed Forces. Tables 26 and 27 of the Appendix show the ratio of directions issued to population in each man-power district while Table 28 depicts the broad industrial distribution of the eighty-odd thousand workers at present under direction. (iv) Approved Terminations from Essential Industries 272. From the beginning of August, 1943 (when statistics for males and females were first kept separately), to the 31st March, 1945, permission to terminate from essential industry (no authority to terminate from unessential industry is necessary) has been conceded by District Man-power Officers on 75,791 occasions in the case of men and 45,209 in the case of women. Of these decisions approving termination, 49,185 in respect of men and 28,876 in respect of women, have been made by District Man-power Officers during the twelve months ended 31st March, 1945. It is important to qualify the total number of decisions involving permission to terminate by pointing out that such decisions have, on a number of occasions, referred to the same workers, and therefore it would be incorrect to conclude that the aggregate decisions applied to a like number of separate workers. Table 32 of the Appendix shows the monthly growth in applications to terminate since March, 1944. 273. The reasons for Man-power Officers' decisions, where these decisions have involved permission to terminate, together with the result as far as industry has been concerned, are set out in Table 31 of the Appendix. From this table it is evident that permission to terminate from a particular undertaking in essential industry has not always resulted in the loss of the worker from the industry itself. Thus, in respect of decisions to terminate during the last twelve months, 7,182 of the decisions in the case of males and 3,673 in the case of females have resulted in the retention of the workers concerned in the same industry. In 32,575 (males) and 12,572 (females) other cases, outflow from the particular industry has resulted in movement to another essential or important industry. In only 2,784 (males) and 1,323 (females) cases of termination has there been a transfer to non-essential industry. Table 33 of the Appendix analyses from the angles of the reason for termination and the nature of the resultant movement all cases of approved applications to terminate between Ist August, 1943, and 31st March, 1945. 274. As far as the termination of male workers has been concerned, the bulk of the balance of terminations has resulted in the loss of the worker to industry on account of ill health, retirement, &c., a total of 4,797 such cases having arisen. As might be expected, with the return of servicemen from overseas, the number of women lost to industry per medium of approved terminations from essential industry has been considerably higher and has reached the figure of 10,392 for the last twelve months. Probably the number of women leaving industry to establish homes or retiring from industry on account of ill health and age, &c., has been considerably in excess of this figure, as the outflow of women workers from unessential industry would have been unchecked and the subsequent direction of such persons could only have been partial. (v) Unapproved Applications to engage and terminate 275. The activity of the Department in restricting the outflow of workers from essential undertakings —i.e., rejecting applications to terminate —and restricting the inflow of labour to unessential undertakings —i.e., rejecting applications to engage—has also played a considerable part in the mobilization of New Zealand's industrial man-power. Though not so dramatic as the positive direction of workers, the restraint of movement of workers has resulted iu a definite contribution to the stabilization of labour content of the more important industries. To date, permission to terminate from essential industry has been refused on some 27,869 occasions. Of these refusals, 25,540 have related to applications to terminate lodged by employees and the balance of 2,329 to applications lodged by employers. This phase of the Department's work has also been prominent over the last twelve months, 9,220 of the 27,869 refusals having been recorded during this period. A detailed analysis of the various aspects of refusals of applications to terminate is contained in Table 31 of the Appendix, and a month-by-month analysis of the applications to terminate received during the twelve months ended 31st March, 1945, is given in Table 32 of the Appendix,

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276. A negative but none the less important contribution of the Department's rejection of applications to terminate is the inhibitive effect which this widely publicized practice has upon workers who would otherwise have moved from important industries. No means of measuring this indirect contribution of man-power control exists. 277. In addition to the rejection of applications to terminate, a comparable contribution has been made by refusal of applications to engage in either essential or unessential undertakings. From the Ist -Tuly, 1944 (when this information regarding essential industries was collected for the first time), to the 31st March, 1945, a total of 890 applications to engage in essential industry has been rejected by Man-power Officers, and this has almost invariably resulted in the direction of the workers concerned from their existing employment to other employment. The rejection of these applications, notwithstanding the unchallenged essentiality of the undertaking, has been due to the existence of higher priority vacancies in other undertakings and to the comparative adequacy of staff in the concerns whose applications have been rejected. In addition, there has been a total of 4,109 rejections of applications to engage in less essential industries. Here, too, the negative contribution of control must have been an important factor in stabilizing the labour force of more important industries, although, again, the precise magnitude of this contribution is unascertainable. 278. The results of applications to engage in essential industry and less-essential industries are analysed in some detail in Tables 29 and 30 of the Appendix. (vi) Appeals against the Decisions of Man-power Officers 279. Ignoring for the time being appeals against fines inflicted by Man-power Officers for absenteeism, misconduct, &c., appeals against the decision of the Man-power Officer arise under two headings. The first of these covers appeals against direction into essential work, and the second appeals against rejection of applications to terminate from essential undertakings. Appeals against refusal of the District Mau-power Officer to permit engagement in employment do not frequently arise, because such workers are generally directed to essential employment and their appeal, if they wish to prefer one, is then an appeal not against the refusal to grant permission to engage in unessential employment, but against the direction to essential employment. To date only 4,922 appeals against the total 168,612 directions have been lodged. This yields an appeal percentage of only 2-9. Of the total appeals, 2,311 (1-4 per cent, of the total directed cases) have been employers' appeals and 2,611 workers' appeals. The corresponding percentage of workers' appeals to the total directions issued was 1-5. Of the appeals actually dealt with, 2,058, or 42 per cent., have been uphold, 863 have been withdrawn, and the balance of 2,001 have been dismissed. Table 36 of the Appendix gives details of appeals against directions into essential work. 280. In the field of appeals against refusal to permit termination of employment in essential industry, 5,853 appeals against a total of 230,511 decisions during the whole period, January, 194-2, to 31st March, 1945, have been lodged. Of these appeals, 978 have been lodged in respect of 70,234 decisions resulting from applications by employers. The balance of 4,875 appeals have arisen out of 160,277 decisions resulting from applications by employees. Of the total of 5,615 appeals dealt with, 1,747 have been upheld, 2,744 have been dismissed, and 1,124 have been withdrawn. A detailed analysis of the outcome of appeals against decisions regarding termination of employment in essential industry is given in Table 37 of the Appendix. SECTION V.—WOMEN IN INDUSTRY (i) Before the War 281. During the decade 1929-39 there was a remarkable increase in the number of gainfully employed New Zealand women. Various estimates of the 1929 total, all more or less incomplete, have been made, but it seems that the figure could not have greatly exceeded 100,000. This is supported by the aggregate of females gainfully employed yielded by the 1936 census (140,000), by which time there had already been some increase in female employment. 282. Conclusions invited from the available data concerning the pre-war employment of women are— (a) New Zealand was slow to experience the trend towards wholesale employment of women : widespread- employment of women did not become noticeable until 1935, many years after it had become established in the United States of America, Great Britain, and the Continent of Europe generally. (b) Between 1935 and 1939 there was a blossoming of employment opportunities for women, almost all industries being affected, but the rapidly expanding manufacturing industries especially so. (c) Much of the industrial expansion that has been such a striking feature of the last decade is due in no small measure to the widespread employment of women. Typical manufacturing industries are clothing and boot and shoe manufacturing. On the retailshop side also a great increase in retail distributive activity rested to a considerable extent on the employment of female labour. (ii) Wartime Industrialization of Women 283. As would be expected, the war accentuated the trend towards widespread industrialization of women. 284. Between September, 1939, and December, 1943 (the peak employment figure for women), the total number of women gainfully employed was estimated to have risen from 180,000 to 228,000, a gain of 48,000. Almost all industries were affected. Table 22 of the Appendix gives particulars of women registered under all. industrial, registration Orders.

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285. This large addition to the labour force was due to a number of reasons, among which were — (a) The patriotic desire of women to assist the war effort. (b) The economic attraction of comparatively high wages. (e) The unprecedented opening up of employment opportunities and the consequent scope for individual and social expression which this implied for many thousands of women. (d) The compulsory registration and direction of women to essential and near-essential employment. (e) The indirect pressure of the industrial mobilization regulations. 286. Direction and restriction of inflow policy was, of course, aimed at staffing essential industries, and consequently industries which have gained most from this policy have been — Farming, Textiles, Hospitals, and 'Hotels and restaurants. Women who were directed to industry between October, 1943 (when statistics in this form were first collected), and March, 1945, and who at the time were not gainfully employed numbered 8,205. The industries to which they were directed are as follows :— Farming'.. .. .. .. .. .. .. 1,517 Engineering .. .. .. .. ~ .. 441 Food and drink .. .. .. .. .. . . 705 Textiles and footwear .. .. .. .. 1,547 Other secondary .. > , .. .. .. .. 451 Shops and warehouses .. .. .. .. .. 82 Offices .. .. .. .. .. .. .. 676 Hospitals .. .. .. .. .. .. 1,147 Hotels, &c... .. .. .. .. .. .. 1,285 Miscellaneous .. .. .. .. .. .. 354 287. To a greater extent than in the case of men, women have been permitted to engage in nonessential work—i.e., work performed in an undertaking not specifically covered by a declaration of essentiality. 288. Since the end of 1943 the number of women in industry is estimated to have fallen from 228,000 to 220,000, all industries being affected. This reversal of trend is explained by the retirement of women workers to establish or re-establish a home for an ex-serviceman husband or retirement on account of age or ill health. It will be further contributed to by the relaxation of control in the cases of wives of returned servicemen and married women of forty years of age or more. 289. At the end of March of the current year there were some 15,950 women held in industry under man-power direction. Of this number, approximately 25 per cent, were held in the clothing and footwear industries and a further 20 per cent, in hospitals and sanatoria. Hotels and catering undertakings, office work, and food and drink manufacturing work came next as important industries of absorption. (iii) The Industrial Future of Women 290. In the foregoing subsection mention was made of the decline in the estimated total of females generally employed from 228,000 at the end of 1943 to 220,000 at the end of 1944. 291. From this it might be argued that with the return of large numbers of ex-servicemen (followed by their marriage in many cases) and the progressive relaxation of man-power control the female labour force will still further waste until the 1939 level or thereabouts is again reached. Inherent in this view are the assumptions that women—especially married women —will give up work wherever possible, and that employment opportunities for women will contract as the general man-power position eases. 292. While the data thus far available lends the above-stated view some force, it must be admitted that the assumptions on which it rests are open to question. 293. In the first place, it is unsafe to assume that the majority of women —married and single— prefer to give up work as soon as they are able. Many women now in gainful employment have tasted economic independence for the first time, and with it has come, in the majority of cases, new opportunities for personality development. These women, too, as pointed out in the subsection dealing with the future working population, have habituated themselves to a level of expenditure which they will not willingly forgo. If it be argued that the bulk of them would choose the scope for self-expression that the home and children offer, it might be rejoined that, even assuming this to be so, increasingly large numbers of women are endeavouring to continue in employment and maintain a home at the same time. With the small families of this generation and the enlarging scope for factory—shift and parttime —employment this is a trend that might easily grow more marked. 294. Possibly no drastic trend either towards wider industrialization or disemployment will be remarked for some time to come. It is, however, probable that, as was the case after the last war, the scope for the employment of women will remain somewhat wider than was the case at the outbreak of war. To New Zealand women this should spell enlarging employment opportunities in manufacturing industries (which continue to expand rapidly and to depend largely on female labour), in commercial and manual work (as commercial and industrial activity develops), in public administration and local-body administration (where several thousands of women have been successfully employed during the war years), and in the professions, where women are only now beginning to knock at the door long since opened to them in other countries.

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SECTION VI.—THE WOMEN'S LAND SERVICE 295. Established in 1940 to supplement the reduced male farm labour force, the Women's Land Service has made an important industrial contribution to New Zealand's war effort. 296. Recruitment of the Women's Land Corps, as it was first called, was organized initially by the Women's War Service Auxiliary. 297. In September, 1942, when the strength of the Corps was still very small, a complete reorganization of the scheme was undertaken and the Women's Land Service of to-day was developed. Features of the reorganization were — (а) The basic weekly payment was increased from 355. and 425. 6d. to 41s. and 48s. 6d. (б) The Service uniform and apparel were liberalized. (c) The engagement of relatives under the scheme was approved for the first time. (d) Recruitment became the direct responsibility of District Man-power Officers. 298. In this form the Service was made more attractive to women and farmers, and by the end of September, 1943 (one year after the reorganization), the total strength of the Service had increased to 970. 299. By 31st March, 1944, the strength of the Service had reached the satisfactory figure of 1,879 —all districts being affected, but the Waikato and Taranaki districts noticeably so in the case of dairy-farms, and Hawke's Bay, Canterbury, and Otago in the case of sheep-farms. 300. Membership of the Service reached its peak in October, 1944 (2,088), since when there has been a steady decline until at 31st March, 1945, the total has been reduced to 1,850. 301. This falling off is partly explained by the easing of the farm labour position caused by the return of Third (Pacific) Division personnel to farm work (July-November, 194-4). 302. In all of the districts where the Service has been popular there is still a keen demand for the services of Land Girls, but the anticipated return of large numbers of servicemen is likely to result in a further reduction in the strength of the Land Service. 303. The Women's War Service Auxiliary continues to co-operate with the Department in maintaining contact with Service members through its District Committees and attending to any welfare aspects which arise. 304. Tables 18 and 19 of the Appendix give details of applications, labour available, vacancies, and strengths as at 31st March, 1945. The comparable strengths as at 31st March, 1944, are shown in parentheses after the 1945 figure. (Note. —As from Ist June, 1945, the wage rate of members of the Women's Land Service has been increased by 10s. per week.) SECTION VII.- EMPLOYMENT OF JUVENILES (i) Liaison with Vocational Guidance Centres 305. Since the beginning of 1942 the work of the Department in dealing with juveniles has been delegated to the Education Department's Vocational Guidance Centres, located in the four main cities. Terminations, engagements, and absenteeism in essential industry have been dealt with or investigated by the officers of these centres and their recommendations handed on to the local Man-power Officers. 306. It should be emphasized that Vocational Guidance Officers themselves possess no powers of compulsion and that they have worked in conjunction with the Man-power Officers in a purely advisory capacity ; but in few cases have their recommendations been questioned. Although the work of the centres has dealt mainly with persons under eighteen, the specialized knowledge of their officers has also been valuable in advising older persons, including ex-servicemen. Liaison has been maintained between the two organizations by a weekly conference at the local man-power office, whore all questions of juvenile employment have been discussed. 307. The real work of the Centres has been summed up in the words " assisting the individual to choose a career, prepare for it, enter upon it, and succeed in it." An earnest effort has been made to co-ordinate this aim with man-power requirements, and where a juvenile has had to make the choice of entering essential or unessential industry, the essential industry has been suggested, provided that the young person's future career would not be impaired. (ii) Placement, &c., Results 308. Those passing through the Vocational Guidance Centres are divided into three classes —from primary schools, from post-primary schools, and from industry. For the year ended 31st March, 1945, the inflow of males numbered 5,231, comprising 273 from primary schools, 1,664 from post-primary schools, and 3,294 from industry. A total of 4,760 were permanently placed and 50 temporarily placed. The largest number were placed in commerce and finance, followed by engineering, which reflects the increased demand for labour in this industry. The number placed in and the outflow from farming were almost equal. 309. The total number of females passing through the Centres numbered 5,695, made up of 420 from primary schools, 2,158 from post-primary schools, and 3,117 from industry. A total of 5,141 were placed, commerce and finance again absorbing the largest number, followed by textile and clothing manufacture.

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310. In meeting the seasonal labour problem the Vocational Guidance Centres were able to assist by the placement of school-children during the holidays. In December, 1944, and January, 1945, some 1,674 children were placed, mainly in shops and warehouses ; but 239 were placed on various types of farms and 185 in secondary industry. 311. Table 39 of the Appendix gives details of juvenile inflows and outflows from the four centres during the last twelve months and to date. The industrial distribution of placements effected is shown in Table 40, and in Table 4-1 particulars of the contribution made by Centres to the seasonal farm, &c., labour problem is shown. (Note. —The removal of man-power control from young persons under eighteen years of age as from Ist July terminates the liaison -procedure until now operating between the Centres and the appropriate man-power office. It is intended to maintain informal liaison to assist in the placement of young persons who are the concern of this Department —e.g., juveniles outside the four main centres.) SECTION VIII. —THE RETURN AND DIRECTION OF THIRD DIVISION, ETC., PERSONNEL (i) Machinery of the " Necal " Scheme 312. As mentioned in Part I of this report, the Government had come by December, 1943, to question the wisdom of despatching further Army personnel to the Pacific. Although the organized return of Third Division personnel from the Pacific was not finally decided upon until April, 1944, the Government did decide in December of 1943 to despatch no further reinforcements to the Division. Moreover, at the same time, two drafts of Army personnel, the first from Norfolk Island comprising 350 men and the second from Fiji and Tonga totalling 1,950 men, were returned to New Zealand and directed to highpriority employment. The bulk of the men in the Norfolk, Fijian, and Tongan drafts were Grade II men who had been employed for the most part on garrison duties. 313. After the decision to withdraw Third Division volunteers for employment in New Zealand (referred to in Subsection (ii) of Section II of Part I of the report), the machinery of the withdrawal scheme (the " Necal " scheme, as it came to be called) was set in motion. The elements of this scheme were — (a) A card survey of all personnel in the Division was taken, each man being given the opportunity when completing his card to volunteer for direction to essential work as an alternative to overseas service, for which he would still be liable. (b) A specialist officer of the National Service Department visited New Caledonia to supervise the survey and interview men volunteering for work in New Zealand. (c) On arrival in New Zealand all men were boarded, and all found to be either Grades I, 11, or 111, after twenty-eight days' leave, were placed on indefinite leave without pay with an instruction to report to the Man-power Officer in their home district on the expiry of their leave for direction to high-priority employment. Grade IV men were discharged outright and directed only in special circumstances. ,(rf) The vacancies for " Necal " personnel in essential industries, other than farming, were ascertained by the usual notification procedure of the Department, but in the case of farming vacancies, which were an important consideration in the operation of the scheme, vacancies were notified by farmers to the local Primary Production Councils, which, after " vetting" them, transferred approved applications to the local Man-power Officer for attention. (e) Men were returned in drafts as shipping became available, called into the District Man-power Office for interview after expiry of leave, and directed to the highest priority vacancies available. (/) Married men unable to obtain family accommodation near their employment were paid the usual separation allowance of 30s. per week payable under the general industrial mobilization procedure. 314. The first draft of " Necal " personnel, numbering 300, returned to New Zealand in April, 1944, and by the end of November a total of 10,500 men had returned. Of this total, over 9,500 were directed to employment, mainly in essential industry. After November, when the comb-out of Category "A " men from industry to man the Second Division replacement drafts was stepped up, " Necal " personnel were subject to review and therefore their distribution as between industries was not distinguished from the distribution of the total number of Category "A " men held on appeal. However, by the end of February the total of Category " A " men held under appeal in essential industry still included 6,125 " Necal" men. 315. In administering the scheme the aim was to programme the arrival of drafts from the Pacific to dovetail smoothly with the vacancies notified by industry. This aim had particular relevance in the case of the farming industry. The staggering of returning drafts in this way depended upon the availability of shipping, for which New Zealand had to rely upon the American authorities, but, notwithstanding difficulties in this field, a substantial degree of success was achieved. However, due to slowness on the part of employers in some industries and to the unwillingness of Third Division personnel to volunteer for others, particularly coal-mining, bushfelling, and sawmilling, the implementation of the scheme presented certain difficulties. 316. Typical of these difficulties was the delay of farmers in notifying vacancies to Primary Production Councils. Indeed, this was of such a serious nature that by June, 1944, applications for farm workers from the Third Division had totalled only 3,318, despite the earlier decision to fix a quota for the farming industry totalling 7,000. In the light of the failure of farmers to co-operate fully, the quota was reduced to 5,000, and ultimately the total number of " Necal " personnel held under direction in farm employment was 4,286 at the end of November, 1944.

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317. A further difficulty, particularly in the absorption of farm workers, was the off-season wane in demand for labour, and in a number of cases Man-power Officers found it difficult to place " Necal " directees in suitable interim employment. There were even a few examples where it was necessary to enlist the co-operation of the Rehabilitation authorities in making available rehabilitation allowances for brief periods. 318. A further difficulty arising out of the direction of " Necal" personnel was that presented by medical conditions in respect of which certificates from private practitioners were produced by the men. Generally the Department acted on the medical grading determined by Army Medical Boards at the time of the return of the drafts to New Zealand, but in spite of this there were many cases where medical conditions did complicate the direction of these men to employment. This is understandable when it is recollected that most of the industries into which these men were being directed involved heavy manual work. 319. In September, 1944, it was decided that the balance of the Third (Pacific) Division would be used to reinforce the Middle East Division, but those men who were thirty-six years of age or more or who had three or more children, as well as those whose medical grading was lower than Grade I, would be transferred to area pool on leave without pay and become available for direction to industry. Of the Category " A " men remaining in the Division, approximately 6,000, it was provided that those who were fully experienced farm, dairy factory, or sawmill workers and who were willing to accept man-power direction to one or other of these industries would be released for such work. 320. When the Second Division replacement scheme was launched it became necessary to remobilize a great number of " Necal " personnel, and by the end of February, 1945, some 3,000 " Necal " men had been remobilized with the Second Division. (ii) Industrial Disposal of " Necal " Personnel 321. From Table 16 of the Appendix it is evident that the direction of " Necal " personnel has been confined to a few key industries in which there were serious labour shortages. Of these, the farming industry ranks first with a total of 4,286 effective directions as at 30th November, 1944. Building and construction retained 1,386 men, while the bushfelling and sawmilling industry retained 474 men as at 30th November, 1944. The New Zealand Railways, which, at that time, were desperately short of maintenance and operating personnel, retained 811 men. The coal-mining and dairy-factory industries likewise obtained much needed relief. 322. The geographical disposal of " Necal " personnel, as might be expected, was determined by the location of the main industries affected, as is evident from Table 16 of the Appendix. The Auckland, Waikato, Taranaki, and Manawatu districts, because they figured so prominently in farming, bushfelling and sawmilling, meat-freezing, dairy-products processing, and building and construction, absorbed a large number of " Necal " personnel. SECTION IX. EMPLOYMENT OF EX-SERVICEMEN (i) Liaison with Rehabilitation Department 323. Until the establishment of the Rehabilitation Department in November, 1943, the National Service Department was responsible for the placement of ex-servicemen. Although all ex-servicemen were legally liable for direction, all down-graded returned men were, as a matter of departmental policy, exempted from direction and were assisted in finding suitable employment where this was necessary. 324. When it came into being, the Rehabilitation Department assumed the responsibility for placing ex-servicemen other than Grade I returned servicemen and industrially fit home servicemen. This arrangement has continued up till the present time. 325. Since the Rehabilitation Department has undertaken the placement of ex-servicemen the National Service Department has, through District Man-power Officers, provided District Rehabilitation Officers with particulars of vacancies in industry. It has, as far as practicable, co-operated with the Rehabilitation Department to ensure preference in employment for returned servicemen. Throughout, man-power control has been operated with an eye to the long-term rehabilitation of ex-servicemen, and civilians of necessity have been the more rigorously controlled to secure this end. (ii) Administrative and Policy Developments of the Future 326. Recent negotiations with the Rehabilitation Board have resulted in an agreement whereby as from Ist June, 1945, the National Service Department, as agent for the Rehabilitation Board, resumes responsibility for the placement of all ex-servicemen fit for industrial employment and desiring assistance to obtain it. 327. This return to the arrangement which applied before the creation of the Rehabilitation Department was induced by a number of factors, chief of which were— (a) The Rehabilitation Department, being concerned with all aspects of the rehabilitation of ex-servicemen, did not possess the organization or personnel to maintain the close contact with the employment field that the placement problem presented. (b) The National Service Department preserved such contact as a matter of routine in its industrial mobilization procedure and was in fact already enlarging its permissive (as opposed to its direction) technique to offer a free service to marginal and partially disabled workers.

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(c) The development of the National Service Department as a post-war Employment Service would have involved two organizations occupying the same field—a plainly undesirable state of affairs. (d) Ihe most effective utilization of man-power, as well as the serving of the best interests of the ex-servicemen themselves, made necessary the handling of employment matters by a single organization. 328. In assuming resjronsibility for the placement of ex-servicemen the Department is undertaking one of the most difficult rehabilitation problems. To ensure that the interests of ex-servicemen are safeguarded, provision has already been made to maintain a statistical barometer of the onset of unemployment among ex-servicemen so that the Rehabilitation Board may be kept fully informed of developments in this field of rehabilitation. In addition, all employment surveys at present in hand or contemplated are being operated so as to lay particular emphasis on the scope for the absorption of ex-servicemen. Particularly is this so in those fields where the trade or vocational training of ex-servicemen in considerable numbers would be feasible. SECTION X.—THE INDUSTRIAL CONTRIBUTION OF THE MAORI PEOPLE 329. The valour of members of the Maori Battalion and Maori members of the Air Force and Navy is widely known. On the industrial front, also, Maori workers have contributed much to the achievements of New Zealand's war effort. For example, Maori workers comprise a large percentage of the seasonal labour force of the Dominion. Especially is this true in the case of shearers and freezingworkers. In the more stable industries Maori workers during the war have rendered particularly good service in bush and town sawmills, on constructional activities, and to an increasing extent throughout the urban factories and workshops of the country. 330. Early in its efforts to organize the industrial man-power of New Zealand the Department sought and obtained the co-operation of the Maori War Effort Organization. In particular, co-operation was received in the establishment of a special Maori Section in the Auckland and Rotorua District Man-power Offices. These sections, working in close contact with the tribal committees and with Maori Utilization Committees which have been set up to discuss all man-power questions affecting Maoris, have been able to feed Maori workers through into critically short-staffed industries throughout New Zealand. The Maori Utilization Committees have also assisted in the consideration of disputed directions of Maori workers and of absenteeism. Almost all directions finally issued by District Manpower Officers have, as a result of the consultative service rendered by tribal committees and Maori Utilization Committees, been accepted without question by the workers concerned. For example, the Maori Section of the Auckland Man-power Office, since it was established in September, 1943,' has issued over 3,000 directions to Maori workers, none of which have been appealed against. 331. It is estimated that in the Auckland district no fewer than 2,400 male and 1,700 female Maori workers are employed in essential industry. Because the bulk of these workers have come from rural districts to engage in this employment, three accommodation camps for them have been set up in the Auckland district. 332. In general, Maori workers have contributed materially to the manning of seasonal and heavy industries throughout the war period. Readiness to engage in arduous work and to accept the directions of the District Man-power Officer after discussion with the appropriate tribal committee or Man-power Utilization Committee has been an outstanding feature. If there is one respect in which Maori workers have caused some embarrassment to the Department it has been in respect of industrial absenteeism. A number of Maori workers have been serious offenders in this regard, but with the assistance of tribal committees and Utilization Committees and the increasing co-operation of the workers themselves, the incidence of absenteeism is steadily growing less marked. SECTION XI.—SEASONAL LABOUR (i) 1939-44 333. Seasonal fluctuations in the level of employment are very marked in New Zealand owing to the importance of primary production and food processing in the economy. In the summer and early autumn, industries in this group require an additional 20,000 to 30,000 workers. Freezing-works employ a maximum of 14,000 workers in January and a minimum of 4,500 in the off season. * Dairy factories require 4,000 in January and 2,000 in July. Haymaking, harvesting, and fruit-picking employ about 12,000 additional workers in the season. As against this, however, some of the manufacturing industries and the building industry reach their peak level of employment in the winter. The Public Works Department and local bodies have assisted the position by increasing the numbers employed in the off season. 334. Thus, until the war, the provision of seasonal labour did not present any very serious problems. Shortages of labour may have developed in particular localities, and in the years immediately before the war there was a definite shortage of some classes of farm labour for the busy season. On the other hand, during the winter there was an excess of farm workers. 335. In the early part of the war no great changes took place in this state of affairs, the reserves of labour employed on public works and Scheme 13 being sufficient to meet most of the demands. In this period the Placement Service made considerable efforts to transfer men from subsidized employment to farm work, the farm labour force being considerably increased as a result.

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336. 1940-41 season presented greater problems, as an increasing number of men were required for military service and the higher level of employment generally meant a reduction in the number of casual workers available. The Placement Service transferred men from other employment and enrolled students and schoolboys in large numbers, thereby fairly adequately meeting the position. In the following years (1941-42 and 1942-43) the problem was much more difficult owing to the large-scale mobilization which was in progress, but it was tackled in a similar manner, with the addition of large numbers of experienced men released from the Army for short periods. 337. The absorption of practically all the reserves of casual labour made the problem of meeting seasonal labour requirements in the last three seasons much more difficult and necessitated the transfer of labour from other industries. 338. Students, teachers, and schoolboys were mobilized to an increasing degree, while as many voluntary workers as possible were enrolled for such projects as vegetable-growing, hop-picking, &c. Much of the seasonal farm work is relatively unskilled; but the needs of dairy factories and freezingworks could not be met in this manner. The Army established special camps in various districts to assist harvesting, and this scheme was very successful. Large numbers were provided for freezingworks by releasing men from the Armed Forces and by the direction of workers from other less essential industries. 339. It is fortunate that the freezing-works are distributed fairly widely over New Zealand and not confined to any single locality, as this enables the whole country to be drawn upon for labour supplies. The works in the South also begin somewhat later than those in the North. Besides these older established industries, the staffing of vegetable-dehydration and linen-flax factories was also a problem ; but the requirements of some of these have been materially reduced in recent months. (ii) 1944-45 340. The last season presented the same difficulties as in previous years and required vigorous action by the Man-power Officers throughout the country. Freezing-works, wool-stores, and dairy factories all require a fairly robust type of worker ; and in the past season large-scale diversion of men from less essential industry was needed, as well as students, teachers, and ex-Army personnel. 341. Females were required principally for food-canning, orchard work, and vegetable-growing, this rquiring a diversion of labour in some districts; but in others it was met without any great difficulty. 342. Tables 41, 42, and 43 give paticulars of juveniles, University students, and school-teachers placed in or directed to holiday or seasonal work during the 1944-45 season. SECTION XII.—REHABILITATION OF WORKERS UPROOTED BY DIRECTION 343. At the 31st March, 1945, there were some 63,000 males and 16,000 females employed in industry under man-power direction. The conclusion that immediately follows from this is that the rehabilitation of many of these workers will present a problem akin to that of the rehabilitation of ex-servicemen, although it can be expected that this problem will be neither so complex nor so difficult. 344. An important qualification which must be made at the outset is that the total number of current directions magnifies the extent of the problem of rehabilitating directed workers. The majority of these workers have the right of reinstatement in their pre-direction positions under the Occupational Re-establishment Regulations, and the problem of the rehabilitation of uprooted workers will be confined to several thousands of workers who have been directed away from one vocation to another either in the same district or in another district and who do not desire to return to, or who will meet difficulty in returning to, the employment which they formerly pursued. 345. The rehabilitation of uprooted workers is closely related to the capacity of the previous employer to re-engage the worker. Just as the re-engagement of ex-servicemen by the pre-service employer will not alwayß be possible, so, too, the re-engagement of directed workers will some times present a problem. If to this is added the general tendency on the part of employers to give preference to ex-servicemen, and the further possibility of difficulty in realizing a state of full employment, the Department will be faced for some time with a small but persistent problem of retraining and placement. It is expected in this connection that workers ujjrooted by the procedure of this Department will in some way be enabled to partake of the same or similar training facilities as those made available to ex-servicemen. SECTION XIII.—ABSENTEEISM FROM INDUSTRY (i) Incidence and Extent of Absenteeism 346. The Department's view (which is supported by various investigations and reports from overseas) has been that the solution of the problem of industrial absenteeism is mainly a matter of sympathetic adjustment between management and staff. It is a well-known fact that there can be identical factories in the same neighbourhood with a widely different incidence of absenteeism. Moreover, a reduction in absenteeism following readjustment of the relationship between management and staff has frequently been noted in reports on investigations into this matter. While the solution of the problem must be regarded, therefore, as. lying largely in the hands of individual managements, absence from essential work without good reason during the period of war emergency has nevertheless had to be viewed seriously. Consequently, provisions were incorporated in the Industrial Man-power Regulations to discipline wilful absentees from industry, and the nature of the control machinery devised for this purpose is discussed in Subsection (iv) of Section 111 of this Part of the report.

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347. The real extent of " voluntary " or " avoidable " absenteeism is difficult to gauge owing to the varying number of cases reported to District Man-power Officers and to the difficulty of substantiating charges of this kind. However, during the year ended 31st March, 1945, 16,246 cases of unauthorized absenteeism were reported by employers, as against the total for the previous year of 19,015. To date cases reported by employers have totalled 42,825. 348. The incidence of absenteeism has changed little. It is highest among men in the " heavy " industries, especially in mining, sawmilling, freezing-works, iron-foundries, and building and construction. Among women it is most observed in those industries where the routine is monotonous and sometimes physically exacting, such as in textile and clothing manufacturing and in the domestic work of hotels and restaurants and other institutions. It is believed that absenteeism is higher among persons held under direction, among young persons as yet imperfectly adjusted to the work environment, and among women with domestic responsibilities. In general, women continue to be worse offenders than men. (ii) Absenteeism Control Results 349. To date warnings have been issued by District Man-power Officers in 25,543 of the total cases reported, and lines have been imposed in 6,687 cases. Of the 6,687 workers who suffered the imposition of a fine, 268 appealed against the decision of the Man-power Officer to the Industrial Manpower Committee. Of the appeals dealt with, 132 were dismissed, while in 42 cases fines were subsequently reduced and in 88 cases fines were wholly remitted. More detailed information covering the control measures operated by the Department is contained in Tables 34, 35, and 38 of the Appendix. SECTION XIV.—MISCELLANEOUS MEASURES (i) Accommodation of War Workers 350. Particular difficulty was encountered during 1942 and 1943 in directing female workers to employment in munitions and other essential industries, particularly in the Hutt Valley. Shortage of accommodation in this area was acute, and the Department found it necessary to establish several hostels for workers in essential industries. The first of these was constructed at Woburn, Lower Hutt, by arrangement with the Housing Department in 1943, and was designed to accommodate some 360 girls who, for the most part, comprised girls directed to munitions employment in Petone. Administration of the hostels on behalf of the Department was undertaken by the Y.W.C.A. 351. In 1944 it was found necessary to open further hostels in the Wellington and Hutt Valley areas. One of these, a former hotel at Oriental Bay, was converted into a hostel, while the second hostel was erected at Lower Hutt to accommodate women war workers. These two hostels were also administered by the Y.W.C.A. 352. The Y.W.C.A. played an important part not only in the day-to-day administration of the three hostels in question, but also in the general welfare and organization of the leisure-time activities of the girls living at the hostels. 353. The establishment of hostels has assisted the Department materially in the most difficult task of staffing munitions, manufacturing, and other essential undertakings in Wellington and the Hutt Valley. (ii) Financial Assistance to Directed Workers 354. A necessary measure tributary to the direction of workers from one employment to another has been the provision of financial assistance to workers suffering loss as a result of a direction. Assistance has been of two kinds : firstly, compensation for loss of earnings as a result of transfer to other employment, and secondly, the payment of separation allowance where workers are required to upkeep two homes, and the payment of travelling expenses and fares. 355. Under the first provision, financial assistance up to a limit of £2 per week is payable by the Department with an overall maximum (including financial assistance) of £8 per week in the case of male workers and £5 per week for female workers, while in the second case separation allowance amounting to 30s. per week is payable to a married man who, on direction to another centre, continues to maintain a home in the centre from which he is directed. Details of the extent of the financial assistance granted to directed and other workers are contained in Section IV, Finance and Expenditure, of Part I of the report, while Tables 44 and 45 of the Appendix classify on a district and industrial basis payments made to date. SECTION XV.—THE EMPLOYMENT POSITION AND OUTLOOK IN SOME KEY INDUSTRIES (i) Farming 356. Despite the withdrawal of 1,140 Category " A " men from farming between December, 1944, and March, 1945, the labour position of this industry is in every district easier than it has been for several seasons. Table 47 of the Appendix, showing the disposal of approved vacancies between March and November, 1944, confirms this view. 357. At the outbreak of war the estimate of man-power engaged in all branches of farming was 155,000. At that time there were approximately 400 vacancies for farm workers notified to the Placement Service, but there were actually more men seeking farm-work than there were vacancies.

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The bulk of the available man-power, however, was either located in the South Island or comprised married men, whereas the main demand was from the dairy-farms in the North and was for experienced single men or for inexperienced youths in respect of whom a training subsidy was available. Shortage of suitable accommodation was a universal difficulty. 358. Until the entry of Japan into the war —December, 1941—the Department found it unnecessary to organize any special farm labour measures. Circumstances combining to render such measures unnecessary were — (а) At the outbreak of war there were several hundred experienced farm workers seeking employment and a somewhat larger number of inexperienced men was available for absorption into the industry. It was not until the 1940-41 season that this reserve was depleted. (б) The first drafts of men despatched overseas were volunteers and until early in 1941 there was no compulsory draw-off of man-power from the farming or any other industry. If anything, the mobilization of volunteers was operated in such a way as to embarrass the farming industry as little as possible. (c) During 1940-41 the market for New Zealand's exportable commodities was seriously threatened by shipping difficulties. As a result there was an accumulation of dairyproduce and meat products which could not be readily exported and which gave signs of causing embarrassment as far as refrigeration storage accommodation was concerned. In this period it was necessary for the Governnment to take special measures for increasing refrigeration storage accommodation, particularly for frozen meat. In this situation there was no need for a definite policy to hold farm workers in industry in preference to other workers, while there was a distinct current of public opinion against the reservation of fit men anywhere. 359. During 194-1 and particularly 1942 (the year of Japanese threat) the farming industry, in common with other industries, made a heavy man-power contribution to the Forces. Following the gazetting of the Industrial Man-power Emergency Regulations (October, 1942), special arrangements were made to conserve man-power in the farming industry as much as possible. Up to 31st March, 1943, some 8,200 farm workers who had been mobilized were released to build up the 1942-43 production. This number comprised more than half of a total of 16,000-odd men released from home-defence Forces during the same period —that is, after Japan had been halted at Guadalcanal. 360. The year 1943 was one of markedly increasing overseas military contribution and it was also a year of selective industrial effort in which the farming industry was conceded high priority. By the end of March, 1944, the peak overseas strength of the Forces, 72,000, had been reached, but it had been reached only at the heavy expense of industrial man-power, including farm man-power. The manpower content of the industry was estimated to have fallen by some 12,000 on the 1939 figure of 155,000. 361. During the year ended 31st March, 1944, the Department assisted the industry by the following means: — (а) Release of selected personnel from the Forces —4,115 men, or 20-7 per cent, of the total man-powered out of the Forces during the year, were released for farming. (б) A campaign to build up the strength of the Women's Land Service was launched. The number of the Service in consequence rose from 972 to 1,879. (c) Vacational schemes to employ University students, teachers, and school-children were organized—l,733 teachers and students were placed during the college vacation and 767 school-children were placed. (d) With the co-operation of the Army and the Air Force, an Army Harvesting Scheme was organized. Of 13,240 men made available, farmers took advantage of the services of 5,000, together with 1,282 mobilized Territorials and 633 men from N.Z.E.F. camps. (e) Male workers were directed from other industries to the farming industry, notwithstanding that it was not covered by a declaration of essentiality. Between October, 1943, and March, 1944, 457 men were so directed. 362. By the beginning of 1944 the demand for foodstuffs and other farm products by the United Kingdom and both the American and New Zealand Forces in the Pacific became so great that it was decided to bring back those men of the Third (Pacific) Division who would volunteer for fanning or other selected essential work. 363. Between March, 1944, and April of the current year the Department has assisted the farming industry in the following ways : — (a) Normal man-power releases—l,B22, or 19-1 per cent, of the total man-power releases, were for farming. (b) Third (Pacific) Division (or " Necal") releases, followed by directions —4,286 of the 9,500 men directed from this source were working in the farming industry at the end of November, 1944. (c) Further expansion of the Women's Land Service—i.e., 1,879 to a peak strength of 2,088 at 31st October, 1944, despite increasing shortage of female workers. (d) Vacational placement of 1,169 teachers and students and 239 school-children. (e) Placement of men made available through the Army and Air Force Harvesting Schemes— . 3,550 such men were employed by farmers. (/) Direction of male workers from other industries—l,3o9 to the end of March, 1945. 364. The table which appears below shows that of a total of 26,910 Category " A " men held under appeal in industry as at 28th February, 1945, no fewer than 13,124, or 49 per cent., were held in the farming industry. If regard is had to the number of single men held under appeal, it is found that 8,118, or 63 per cent., of the total of 12,868 were held in the farming industry.

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Table showing Number of Category "A" Men held in the Farming Industry and in all Industry

mtwi Will J VUll O V/ VVI OVUO OVI V IVCt 365. Almost every Man-power Officer has reported a satisfactory farm labour position as at 31st March (subsequently confirmed as at the end of May), notwithstanding the effects of the recent comb-out of Category "A " men. All report that the " Necal " scheme played a major part in the 1944-45 season and has served to stabilize considerably the man-power position of the industry to this day. In this regard it is worth commenting that the influx of " Necal" personnel to the farming industry was rendered more difficult by the slowness of farmers to notify vacancies and the apparent inability of the industry to absorb all the " Necal " quota which had been set for it on negotiations with its representatives. 366. Very brief comments on the district farm labour position are appended : — Whangarei (all North Auckland.)—A shortage of dairy-farm hands for some time to come is anticipated, but the overall position is satisfactory. The main difficulties are accommodation shortage and inaccessibility. Auckland.—The position is generally satisfactory. Primary Production Councils estimate that an increase in milking-cows of 10,000 for the district has been achieved during the year. The comb-cut of Category "A " men is not expected to affect production materially. Development of the use of machinery during the war years has greatly economized farm labour. Hamilton (Waikato). —The dairy-farm labour shortage is chronic and is not a wartime development. Up to 250 additional dairy-farm hands could be absorbed. Farmers in this district failed to notify vacancies for " Necal " personnel as fully and promptly as was expected. In sheep, mixed, and agricultural farming little difficulty arises. Paeroa (Hauraki and Thames). —Shortage of dairy-farm hands is chronic here also, where similar remarks to those made in connection with the Hamilton district apply. During the year the industry experienced a heavy labour turnover estimated at as high a figure as 30 per cent. This was due to seasonal labour requirements and to the immobilization of many " Necal " men. Rotorua (and Bay of Plenty). —In this district the farm labour shortage in the dairy industry (almost the only branch of the industry pursued here) has been chronic. Again the shortage is explained by inaccessibility and shortage of suitable accommodation. Gisborne (Poverty Bay).-—ln this district dairy-farming presents no problem, but sheep-farming, which is the main branch of farming activity, has always had an experienced farm labour problem. Vacancies for competent shepherds and shearers perennially exist. Lack of accommodation is quoted as the main difficulty. Napier (Hawke's Bay).—ln the dairying branch of the industry a steady increase in production over the war years is reported and the labour position is regarded as satisfactory. In sheep-farming a considerable shortage of shepherds has been felt for some time, and this has been accentuated by the expansion in this branch of the industry over the war years, typical of which is the increase in actual killings from 1,500,000 to 1,665,000. Lack of accommodation and inaccessibility are reported as the main difficulties. In the agricultural branch of farming a heavy increase during the war years is reported. A considerable acreage is at present cropped for vegetable and grass-seed production, while the baling of hay and ensilage has increased by approximately 20 per cent. The seasonal agricultural activity and harvesting have been rendered successful only by the use of Army personnel, students, teachers, week-end workers, and Maoris otherwise resident on their own small holdings. A considerable increase in stone and pip fruit production is also reported, and fruit-picking during the last year has substantially been accomplished by week-end workers. New Plymouth (Taranaki). —Branches of farming other than dairy-farming are not important in this district. In the dairy-farming industry there was an acute shortage of labour until the return and direction of " Necal " personnel, but the farm labour position in the district is generally satisfactory. The arrears of maintenance during the war years are not regarded as presenting any formidable problem. Lack- of accommodation is quoted as the main farm labour difficulty. Wanganui.—ln the dairy-farming industry a shortage of experienced men has been felt for some time, but the position was very much eased by the direction of " Necal" personnel. Lack of accommodation is a real difficulty. Similar remarks apply to both sheep and mixed farming. Wheatfarming is the only cropping activity of any consequence in the Wanganui district, and adequate Maori labour has been available for this purpose.

Categoiy ' lc ' cl in a " Number of Category " A " Men held in Farming Industry. Single. Married. Total. Date. Single. Married. Total. ,, Percentage Percentage Percentage Number. of Number. of Number. of Whole. Whole. Whole. 31st March, 1943 .. .. 36,077 .. .. .. .. 13,013 36 31st March, 1944 11,255 25,169 36,424 6,036 54 7,624 30 13,660 38 28th February, 12,868 14,042 26,910 8,118 63 5,006 36 13,124 49 1945 Note.—(i) The above figures exclude coal-miners, ships' personnel, ministers of religion, and police. (ii) Category 11 A " at 31st March, 1943, and 31st March, I !)44, covered men aged twenty to forty years inclusive with fewer than four children, while Category " A " at 28th February, 1945, covered men aged twenty-one to thirty-five years inclusive with fewer than three children and who had had less than three years' overseas service.

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Palmerston North (Manawatu). —Here, again, the farm labour shortage which was experienced was felt mainly in the dairy branch of the industry, and the direction of " Necal " personnel has much improved the position. A stabilization of the dairy-farm labour force in this district is reported. This is attributed to the accessibility of the bulk of the district and to recent wage increases. Some change over from dairy-farming to sheep-farming has been reported, but this has been checked to a degree by the inflow of " Necal " personnel. The dairying branch of the industry has also suffered from the shortage of fertilizer. In the sheep-farming branch the farm labour position was never so difficult as in the case of dairy-farming, and the shortage which was experienced was corrected by the direction of " Necal " personnel. Some expansion of sheep-farming activity in the Manawatu district is expected. No problem is presented by either mixed farming or agricultural farming. Masterton ( Wairarapa). —ln the Wairarapa district, as a result of the direction of "Necal" personnel, the farm labour position is reported as being easier than it has been for several seasons. Primary Production Councils have played a material part in achieving this good result. Special mention is made of the arrears of maintenance work, which will present a considerable problem, and also of the valuable contribution of the members of the Women's Land Service in this district. Wellington and Lower Hutt. —In neither of the small districts covered by these two offices is farming activity of any consequence. Such farm labour problem as has existed has been correspondingly minute. Blenheim (Marlborough). —Such dairy-farming as is carried on in this district is mainly pursued on a single-unit basis and hence little labour turnover has been experienced. Farm labour shortage is not a great problem. In the sheep-farming branch of the industry a very considerable labour turnover has been experienced and at times there has been a real shortage. The direction of " Necal " personnel has done much to improve the position. Agricultural farming has presented little difficulty, apart from its seasonal aspect. Small fruit, shearing, and harvesting have been the major seasonal difficulties in Marlborough. On the whole, the farm labour position in the Marlborough district is reported as satisfactory, with the normal drift to the towns arrested. Nelson.- Little turnover of farm labour in this district is reported and the position is considered by both the District Man-power Officer and the Primary Production Council to be satisfactory. Seasonal farm labour shortage in the tobacco, hops, and fruit branches is considerable, and there is an annual immigration of labour for this purpose. Westport (Northern West Coast). —In this district, where dairy-farming is practically the only branch of the industry, no marked labour shortage has been reported for some time. Greymouth (Southern West Coast). —In dairy-farming a substantially similar position to that obtaining in the case of Westport is reported. Christchurch (Canterbury). —ln the dairy-farming branch of the industry the man-power position is regarded as being more satisfactory than for some years. In sheep-farming, also, the position is regarded as highly satisfactory. In mixed farming and agriculture, largely as a result of the valuable assistance of Primary Production Councils, there has been a satisfactory solution of the shortage of shearers, enabling the available labour force of trained men to handle the clip. Ashburton. —In neither dairy nor sheep farming is there any important farm labour problem. Some shortage of labour is experienced in mixed farming, particularly in cropping, and here the position has been assisted materially by the use of Service personnel. Harvesting has always presented difficulties in the Ashburton district. The organized zoning of sheds for shearing has assisted in overcoming the shortage of shearers. Timaru (South Canterbury). —Dairy-farming has presented little difficulty in this district, but a considerable shortage of experienced shepherds and other sheep-farm workers is known to exist. Again the shortage of trained shearers has been met by zoning. In mixed farming a demand for all types of workers, but particularly tractor-drivers and teamsters, is chronic. A large number of " Necal " men was allotted to farmers in this district. The Timaru district is a big absorber of seasonal farm labour and has been much assisted by the Army Harvesting Scheme. A labour problem in threshing-mills is reported. Dunedin (Otago).—The overall farm labour position in this district is reported as satisfactory. It has been much assisted by the direction of " Necal " men. Dairy-farming presents no difficulties, but there is some shortage of high-country shepherds. Harvesting activity, as in the case of other districts, was dealt with satisfactorily with the aid of Service personnel." The zoning of shearing activities in co-operation with Primary Production Councils enabled a satisfactory solution of the always difficult shearing problem. Lack of suitable accommodation is quoted as the main difficulty of farming in this district. Invercargill.— The general farm labour position is reported as satisfactory despite the recent comb-out of Category "A " men. This position is attributed to the direction of " Necal " personnel. Lack of suitable accommodation, particularly for married couples, is the main difficulty of the dairyfarming industry. Harvesting has been met during the last season by the aid of Service personnel, while in the case of the shearing season little difficulty was experienced. 367. The reports of District Man-power Officers justify the appraisal of the farm labour position which has already been made. Conclusions invited from the data provided are (a) In both sheep and dairy farming in the main farming districts there is considerable scope for the progressive expansion of the labour force. (b) The dairy-farming branch of the industry is most affected by farm labour shortage, with the Hawke's Bay and South Canterbury districts presenting an especially difficult seasonal farm labour problem in agricultural activity. (c) Lack of suitable accommodation, inaccessibility and therefore absence of social amenities, seasonal nature of much of the work, and relatively low wages account for the reluctance of workers to engage in this activity. (d) The pre-war trend of the population from farming to urban industry has been temporarily arrested during the war years. (Note.—Some 8,900 male workers were held under direction in the farming industry as at 31st March, 1945.) This drift must, however, be expected to reassert itself unless employment in the industry is made more attractive' particularly in regard to the provision of suitable housing.

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(ii) Bushfelling and Sawmilling 368. Perhaps no industry has been more under stress during the war years than the bushfelling and sawmilling industry. Before the war, shortages of both skilled and unskilled labour were widely felt, particularly in the bush mills in the centre of the North Island. With the great increase in the demand for timber for defence construction and other war purposes, in addition to the housing programme, the pressure on the man-power resources of the industry has greatly increased. 369. Table 49 of the report summarizes a survey undertaken at the end of 1944 and covering the man-power position in every bush and town mill of any consequence. From data provided by the managements of the 321 units surveyed, the labour force of the industry increased during 1944 from 6,561 to 6,780. Notwithstanding an inflow of 2,007 workers during the year, there was an outflow of 1,788. In addition, turnover of man-power between units in the. industry affected 656 men. The conclusion invited from this is that the labour content of the industry has only been held by the most strenuous efforts of the Department and that the removal of man-power control would result in an almost immediate outflow of labour from the industry. 370. Almost all classes of workers in the industry are in short supply, but the greatest demand for labour has been in the heaviest and/or the most skilled branches—namely, bushman, with total vacancies at the end of 1944 numbering 241 ; sawmill hands, 208 ; and tram or road construction and surveying workers, 58. 371. The districts in which the greatest shortage of man-power has been experienced are naturally the districts where activity is greatest —namely, Taumarunui, 87 ; Rotorua, 139 ; Auckland, 39 ; Nelson, 30 ; Greymouth, 122 ; and Invercargill, 65. 372. Had no man-power become available from " Necal " personnel for direction to this industry, the total labour content of the industry would have dropped on the previous year by over 200. As it was, the total number of " Necal " men held under direction in the industry as at the end of November, 1944, was 474, which was considerably less than the target set for the industry. The remote nature of the work, the lack of accommodation, and the rigorous working conditions resulted in insufficient volunteers from the Third Division becoming available to achieve the " direction " target for th o industry. 373. It must be concluded that, as the bushfelling and sawmilling industry is being called upon to play an increasingly important part in housing and reconstruction building activity, notwithstanding the cutting-out of readily accessible stands, a material expansion in the labour force of the industry must be achieved. (iii) Coal-mining 374. Notwithstanding some expansion in the numbers of workers engaged in this industry, the man-power difficulties which the industry has presented have been almost as serious as those which have arisen in the case of the bushfelling and sawmilling industry, an industry which in some respects is similar to the coal-mining industry. Before the war there was a shortage of fit men as truckers in the Waikato and West Coast collieries. Since the outbreak of war the position both as far as miners and truckers have been concerned, but especially in the case of truckers, has become increasingly difficult as the increased demand for coal has taken place. 375. At the beginning of the war the production of coal was below the 1929 figure largely on account of the substitution of hydro-electric power for industrial purposes. As a result of this, mine development had lagged behind and many New Zealand mines are gradually approaching exhaustion, a state which has commensurately raised the cost and difficulty of extraction, The aggregate coal production for 1944 was 2,806,000 tons, as against the 1939 output of 2,342,000 tons. The estimated output for 1945 is 3,000,000 tons. A factor in the increase in production has been the opening-up of opencast mines. 376. The present labour force of the industry—viz., 5,550—is distributed throughout the various districts as follows : — p er Q entWest Coast and Nelson .. .. ~ .. .. 2,500 45 North Island: Waikato and Whangarei .. .. .. 2,100 38 Otago and Southland .. .. .. .. .. 950 ]7 As at the end of March of the current year there were vacancies in coal-mines for some 100-odd men. The demand at the present time is rather for truckers, who must be young and fit, than for miners although a number of the latter could be employed in Waikato and West Coast mines. Above-ground maintenance staff, tradesmen, &c., have also been in short supply during the war years. 377. The shortage of man-power in the coal-mining industry is generally explained by the following factors : — (a) The usual aversion to underground work. (b) The shortage of fit men other than those held on appeal. (e) Lack of suitable accommodation, particularly at the Waikato mines. (d) The heavy nature of the work and industrial risks involved. 378. Before April of 19.43 the Department, either through Armed Forces Appeal Boards or through District Man-power Officers, was responsible for some 200 recommendations to the Forces to release personnel whose pre-service employment had been in coal-mines. Since April of 1943 the number of men released by the Forces for employment in the industry has reached 535, of which number 393 (including 140 " Necal" personnel) were released and directed to the industry during the last twelve months. 379. As 110 slackening in the demand for industrial and household coal can be foreseen (at least for some years to come until hydro-electric power generation is much extended), the coalfields of the country must be expected to present a difficult man-power problem. This is especially true when it is borne in mind that the wastage among skilled miners has been high and the number of men entering the industry as youths is decreasing. An important factor to be taken into account in any

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consideration of the future man-power position is the fact thatatthe present time a total of approximately 1,100 Category "A " men are held in coal-mines (West Coast, 583 ; Waikato, 400 ; elsewhere, 117). In the absence of controls to retain these men in mine employment, a considerable outflow from their number can be expected. (iv) Building and Construction 380. Throughout the war the building industry has presented a difficult problem to the Department. Until the entry of Japan into the war the industry suffered a heavy draw-off of its man-power. During 1942 at the time of the general mobilization and the launching of the enormous defenceconstruction programme, man-power was held in the industry, and, indeed, augmented by the release of a, number of home-defence personnel in the spring of 1942. By the end of March, 1944, man-power releases to the industry totalled 2,491, and this figure was increased at the end of March of the current year to 5,714, excluding " Necal " directions. At the end of November, .1944, 1,386 " Necal" personnel were held under direction in the industry. Directions from other industries from Ist October, 1943, to 31st March, 1945, have totalled 3,112, and of this number no fewer than 2,222 have been directions during the last twelve months. 381. It is therefore obvious that a policy of building up the labour force of the industry has been pursued as actively and expeditiously as the military man-power position has permitted. During the last twelve months in particular a great effort has been made to deflect labour to housing constructional activity. In this connection it has been estimated that the man-power and materials which combined to complete the heavy defence construction programme would have produced no fewer than 17,000 dwellings. 382. Notwithstanding all the efforts of the Department, the man-power position in the industry is definitely unsatisfactory and must be expected to remain so for some time. Almost every Man-power Officer reporting on the building position in his district has advised that a great demand for housing and industrial buildings exists, and although a shortage of man-power has existed in most districts, the greatest difficulty confronting the industry has been the limited supplies of timber and other materials available. 383. Attention has recently been directed to the matter of securing greater co-ordination within the industry, with a view to ensuring that the available labour and materials are applied to the more essential types of building construction, such as housing, hospital and school buildings, hydroelectric schemes, and other priority works of national importance, until such time as the output of sawmills, brickworks, and other ancillary undertakings can be increased. (v) Transport and Communications 384. Under this heading are included coastal shipping, road goods and passenger services, localbody bus and tram services, and all the services provided by the Post and Telegraph and Railways Departments. 385. Shortage of man-power in the transport and communications industry is almost entirely a wartime development. Of the various branches, road goods and passenger services and shipping services have experienced only particular temporary embarrassments, albeit it has been necessary to hold 600 Category "A " merchant seamen under appeal. The comparative easiness of the position in road services has been due to — (a) The more or less permanent general surplus of motor-drivers. (b) The inflow into the industry of ex-servicemen and others as owner operators. Of the remaining branches of the industry, the Railways Department and the tramway services of the two largest cities have presented the greatest problems. 386. The Railways Department was embarrassed early in the war by the despatch of a railway operational unit to the Middle Bast and by the progressive mobilization of other members of its staff. Added to this difficulty was that created by the huge increase in goods and passenger traffic throughout the war, but especially during 1942 and 1943. The return of the railway operational unit in July, 1943, the direction of men from other industries, the reservation of 2,872 Category " A " men as at 31st March, 1944, and the wholesale engagement of women as clerks and porters did much to improve the position. Despite this, at the beginning of the twelve months ended 31st March, 1945, the Department was seriously short staffed, especially for permanent-way maintenance workers, train crews, and station porters. The direction of some 850 " Necal " men between April and November of .1944 did much to improve the position, which has now been again rendered somewhat strained by the comb-out of Category "A " men. Relatively low wages have, until recently, combined with other reasons to make staffing of the Department difficult. 387. Although a considerable number of its total staff is still serving with the Forces, the Post and Telegraph Department, except in special sections, has not presented a problem comparable'with that of the Railways. This is explained by the great amount of clerical and light manual work involved and the wholesale use of women workers on this. 388. Real difficulty has been met in staffing the tramway services, particularly in Auckland and Wellington. In the case of Auckland, notwithstanding a heavy turnover of labour, the service has been maintained by — (a) Increased hours of work among the traffic staff. (b) An active direction policy applied, to both males and females. (c) A rigid surveillance of terminations from the industry. (id) The efforts of an enthusiastic Man-power Utilization Committee. Despite these aids to the situation, the maintenance work of the Auckland tramways service is considerably in arrear,

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389. The Wellington tramway service, employing a staff of 970 men and women, of whom 600 are motormen, conductors, conductresses, or bus-drivers, has at times suffered serious man-power shortages. Women conducting staff, who numbered as many as 300 in 1942, have found the work somewhat arduous and are gradually being replaced by directed males or by ex-servicemen. During the twelve months ended 31st March, 1945, some 100 men were directed to conducting employment and a further 70 to repair and maintenance work. A considerable number of additional men could yet be engaged, particularly on track maintenance, but a progressive improvement in the position can be anticipated. (vi) Clothing-manufacturing 390. The labour force of this industry in 1939 was 1,883 males and 10,387 females. By December, 1944, the total labour force had increased to 16,700, there having been some decrease in the number of males. As the overall increase was therefore due to the employment of more females, it will be seen that the employment of women is an important factor in this industry. At the present time there are some 4,000 women held under direction in clothing-factories and woollen-mills. 391. The Department has throughout experienced considerable difficulty in finding adequate female labour for clothing-factories, and only after it had become evident that sufficient labour was not available in the main cities, where clothing-manufacturing has been for the most part carried on, did firms decentralize plant to auxiliary factories in secondary towns. The Department assisted materially in this decentralization by conducting a survey of untapped female and male labour in the secondary towns in question. 392. Arising out of the data collected by the Department, several firms commenced operations in secondary towns such as New Plymouth, Wanganui, Napier, Levin, and Timaru. This has much eased the strain on the industry, which up until the present time has been most arduously engaged in producing Service requirements in addition to garments for civilian consumption. 393. The switch back to the manufacture on a large scale of civilian clothing with the return of many thousands of servicemen during the current year will place a great strain on this industry and focus attention on the importance of retaining the services of the women who have entered it during the war. At 15th March, 1945, the total vacancies in the industry for female workers were 1,390. 394. During the year some considerable improvement in the production of essential civilian garments of the types which have been in short supply has resulted from action initiated by the National Garment Control Council, which was set up in November, 1943, and on which this Department is represented. 395. Trends which have been observed in the industry during the war period are— (а) A considerable increase in the part-time employment of married and single women. (б) A disappointing lack of co-operation on the part of some manufacturers in the manufacture of the more essential utility garments. (c) The preference of women workers for work in factories producing women's and girls' wear. 396. Problems which face the industry include— (a) The prospective exodus of married women and other women proposing to marry ex-servicemen. (b) The likely general wastage of man-power following relaxation of control. (c) The difficulty of recruiting juveniles to offset the natural wastage of operatives and, in particular, to replace the wastage of married women when this takes place. (d) The objections of many parents to clothing-factory employment. (e) Absenteeism, which has been most marked during the war years, but which can be expected to decline with the return to peace conditions. (/) The necessity for further decentralization of the industry to overcome labour problems. 397. The district position presented by the industry is briefly summarized as follows _ Auckland.—Here there has been an extension of some hundreds in the number of workers employed until the present labour strength of the industry in the district is in the neighbourhood of 6,000. Vacancies at the present time number 350 for females and 20 for male workers. However, these vacancies are merely those which have been approved by the Department for early filling, and the fact that there are in this district approximately 500 clothing-factory machines idle gives an indication of the expansion potential of this industry were the labour available. Good work has been done by the District Manpower Utilization Committee in the diversion of labour in terms of the findings of the National Garment Control Council, and the Committee has also greatly assisted in the comb-out of Category " A " men. Demands on the industry during the last year have been met only by— (a) Block transfers of labour within the industry to achieve priority schedules. In this the Utilization Committee has greatly assisted. (b) The direction of girls released from the W.A.A.C.s and W.A.A.F.s. (c) The recruitment of nearly 200 girls by the Vocational Guidance Centre. A large labour turnover has been experienced by the industry as a result of transfers initiated by the District Man-power Officer and terminations due to ill health, maternity, &c. Working conditions in some of the local factories are poor. Hamilton.—A small factory recently established at Huntly is securing all the labour required. Paeroa.—A clothing-factory has recently been established at Thames and the staffing of it has not been difficult. Napier.—An expansion in activity has taken place, but as the unit, is small the staffing of it has presented no difficulty. New Plymouth.—A recently established clothing-factory at New Plymouth has experienced no difficulty in obtaining adequate female labour. A similar factory commenced at Hawera has also met no difficulty. Wanganui.—lt has not been difficult to staff factories recently established in this centre. Palmerston North.—The industry has greatly expanded during the war and a number of factories have been commenced in the city and adjoining towns, Their staffing has not been particularly difficult.

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i Masterton. No fewer than five clothing-factories have been set up in this district during the war. Their establishment has tapped the female labour reserve of the district which was hitherto idle. Wellington. Some slight reduction in the total number of operatives employed in the industry has been offset by an extension in adjoining towns in the Manawatu and Wairarapa districts. Considerable difficulty has been experienced during the year in meeting priority orders, and the block transfer of labour between undertakings has not obtained the co-operation from all manufacturers that was anticipated. Considerable difficulty, in particular, has been experienced in switching productive effort towards shirts, pyjamas, and suits. Christchurch. No great difficulty has been experienced by the industry in this centre. 1 imaru. A. small factory has recently been established in this centre and it is tapping a reserve of female labour. Dunedin. -In the main, success has been achieved in finding labour for all priority work in Dunedin factories. Transfer of workers between factories and between departments inside the same factories has been necessary to achieve this. The degree of co-operation of employers in the block transfer of workers has been rather more satisfactory than has obtained in certain other centres. Notwithstanding the general satisfactory state of the industry, total vacancies as at the end of March were in the neighbourhood of 150. Again the difficulty is to recruit labour to those units or departments of units engaged on high-priority clothing. A high labour turnover in this industry and a diminution in the number of juvenile entrants is reported. (vii) Woollen-manufacturing 398. The estimated total labour force of this industry is 3,403, of whom 1,523 are males and 1,880 are females. There has been a decline in the numbers employed amounting to some hundreds over the past few years. 399. During 1943, 1944, and the first quarter of 1945 the industry has been assisted by the issue of over 1,000 effective directions, the bulk of which has been issued to female workers. Vacancies at the present time stand at 305—viz., 267 for females and 38 for males. Category "A " men at present held under appeal number over 100. 400. It is apparent that, despite the strenuous efforts of the Department, there has been a progressive wastage from the labour force of this industry. The reasons for this are— (a) Ihe pronounced tendency of almost all mills to rely on the Department for the supply of all labour required. (b) The high level of terminations among female workers due to marriage, ill health, maternity, or age. (c) The widespread antipathy of juveniles to mill employment and their entry into other industries offering more congenial working conditions or more attractive wages. (d) The insistence of some managements on obtaining the services of junior females. (e) Remoteness of a number of mills. 401. It may be recorded that this is the only industry in which the Department has been unsuccessful in securing the full co-operation of the managements, who have consistently refused to recognize or to appoint representatives to the Man-power Utilization Council. 402. Notwithstanding this unco-operative attitude, the Department, appreciating the basic importance of the mills production to the clothing industry and to the Dominion's internal economy, has spared no effort to maintain the staffing position of the mills at the highest possible level, and to this end has accorded to woollen-mills vacancies the highest possible priority, second only to the needs of general and mental hospitals. (viii) Dairy Factories 403. Always an industry presenting a definite seasonal labour problem, the butter and cheese making industry has become increasingly difficult to staff during the war years. 404. The 1941-42 season was the first during the war to present more than ordinary difficulty. The short-staffed Taranaki and .Waikato factories worked through the season with the assistance of labour supplied by the Placement Service, including men from employment-promotion schemes, University students, and in some cases older secondary-school boys. During the following season the industry managed fairly well as a result of the release of a large number of men from the homedefence Forces. The following season the position was met in much the same way, but with increasing difficulty. By the end of that season —March, 1944—823 men had been man-powered out of the Forces to engage in the industry and many others had been directed to the industry from other employment. 405. When " Necal" personnel were being returned to New Zealand for work in essential industry (April to November, 1944), the man-power outlook for dairy and cheese factories was serious. It was doubtful just how the 1944-45 production would be handled. The industry gained from " Necal " drafts a total of 480 men, but it could have absorbed many more. The season's production was disposed of only by a severe direction policy and by an equally severe scrutiny of terminations from the industry and recourse to overtime work. 408. In the off-season the aggregate labour force of the industry is estimated at 2,000, and at the height of the season —November-December—it is required to rise to approximately 4,000, The present labour force includes, among others, 889 Category " A " men held on appeal. 407. If the output for the 1915-46 season is to be successfully handled, a considerable augmentation of the industry's man-power will be required, and this will call for an even more vigorous direction policy than has applied in previous seasons in diverting labour from other forms of employment. Present indications are that it will also be necessary to call upon staffs to work overtime to the same extent as has applied in past seasons.

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408. As an indication of the difficulties confronting the Department in providing the full complement of labour for dairy factories, many of which are remotely situated, it may be recorded that in one district 72 additional workers will be required during next season by nine factories which are unable to provide any accommodation. Private accommodation must therefore be secured for any workers who may be directed to these factories. In the case of another group of seventeen factories requiring approximately 80 additional men, oidy single bachcs are available, the men being required to prepare their own meals and to supply all their own gear, including cooking utensils and bedding. 409. With the removal of man-power control, managements will find great difficulty in retaining factory staffs, for the following reasons : — (a) The work is heavy and unattractive. (b) Factories are remotely situated. (c) There is a serious lack of accommodation for married men. (d) The work is seasonal in nature, probably 40 per cent, of the staffs being laid off in the winter months. 410. Turning to the principal dairying districts, the following facts emerge : — Auckland and North Auckland.—A labour turnover of up to 50 per cent, is recorded among inexperienced men, due to the seasonal nature of the work, physical breakdown, and lack of accommodation. Men are most reluctant to enter or remain in the industry. The direction of " Necal" personnel assisted materially last season. Waikato and Hauraki. —A serious seasonal labour shortage is recurrent. Several hundred additional workers will be required by November. Difficulties are the same as those evident in the Auckland district, but the particular difficulty of absenteeism among Maori workers has attracted attention. Again the direction of " Necal" personnel somewhat eased the position during the last season. Taranaki. —In no district is the problem of staffing dairy factories during the season more difficult than in Taranaki. It is estimated that in this district there is an increased seasonal demand for factory workers of some 500, but by the end of March staffs are almost always adequate to cope with the most pressing requirements. During last season no fewer than 328 men were directed to dairy-factory employment in Taranaki, but despite this the year's production was handled at the peak point only with considerable difficulty. In the Taranaki district the off-season fate of dairyfactory workers is ordinarily more insecure than that of similar workers in the Waikato, because the town of New Plymouth does not present the scope for employment that Hamilton and Auckland do. Dairy-factory workers laid off after the season, as far as Taranaki is concerned, must either rely on farm work, which is not always available, or migrate to other centres. Shortage of accommodation and the seasonal nature of the work are, as elsewhere, the main difficulties faced. Wanganui and Manawatu.—The man-power position of factories in these districts has not been such a problem as in the Waikato and Taranaki, where factories are perhaps more remote and reserves of labour less readily tapped. Accommodation difficulties are nevertheless pronounced and recourse to " Necal " personnel was necessary to man factories during the last season. Southland.—Unremitting endeavour to cope with a situation, made especially difficult by the emphasis on cheese production, has been necessary in this district. During the season just ended factories were manned only by the retention of 60 Category " A " men under appeal and the direction of 37 " Necal " men and 295 workers from other employment. (ix) Public and Mental Hospitals and Sanatoria 411. The estimated aggregate staffs of public hospitals, sanatoria, and mental hospitals in New Zealand is in the neighbourhood of 15,000, of which number something under 2,000 are employed in mental hospitals. Nursing staffs, male and female, comprise rather more than half of the total staff strength. 412. No figures are available concerning the labour content of private hospitals, which have not caused the concern that the public hospitals and mental hospitals have done. 413. Staffing of both public hospitals and mental hospitals has been a constant source of difficulty to the Department and the authorities directly concerned. As at the end of March of the current year there were approximately 2,800 women held in hospital employment under direction, mainly as wardsmaids, kitchen staff, &c. As at the end of February of the current year, some 250 Category "A" men were held under appeal in the industry. All the larger centres report considerable difficulty in staffing public hospitals with nurses and wardsmaids, kitchen hands, &c., but particularly the latter class of workers. During the war years the difficulty has been accentuated by a growing demand for hospital services. This has been due to— (a) The benefits made available to the public through social security. (b) Treatment of large numbers of sick and wounded ex-servicemen. (c) Some general decline in the public health due to war stress. 414. Staffing difficulties have been accentuated by— (a) In some districts shortage of accommodation for workers living in. (b) In the cases of sanatoria, their remoteness. (c) In the cases of mental hospitals, the unreasoned prejudice of the public, especially women, against work of this kind. 415. At the present time the Mental Hospitals Department has vacancies for some 200 workers of all types, of which number rather more than two-thirds would be for nursing staff, both male attendants and female nurses. During the last twelve months the serious staffing position in almost all mental hospitals necessitated special measures on the part of the Department and the Mental Hospitals Department. A publicity campaign involving the use of printed matter, radio, and church appeals was launched, and as a result the position was somewhat improved. It has been the experience

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of the Department that the direction of women to this class of work has, on the whole, been unsuccessful mainly because of the preconceived prejudices of the women concerned, and the repugnance with which the uninformed members of the public view the direction of women, especially young women, to this work. Recent improvement in the wages of mental-hospital employees is reflected to some degree in the increased recruitment of both male and female workers. 416. Vacancies in public hospitals at the present time number 165 for nurse probationers and approximately 300 for wardsmaids and other similar types of workers. Probably public hospitals and sanatoria could absorb considerably more workers than these. Only the most persistent direction efforts of District Man-power Officers and the closest scrutiny of applications to terminate from hospital employment have held the staffing position during the last twelve months. It is anticipated that the demobilization of large numbers of servicemen during the present year will enable easing in the staffing position of general hospitals. 417. During the year it has been necessary in some districts to place all single girls between the ages of twenty-one and twenty-two under a universal obligation to perform twelve months' hospital service, and this has enabled the Department to maintain the staffing position of the main general hospitals at a satisfactory level. (x) Boot and Shoe Manufacturing 418. This is an industry which has been called upon during the war years to greatly expand its output. There has been a considerable increase in the number of workers employed in the industry as compared with the pre-war strength, but there are at present vacancies for 13(3 male workers and 240 females. The total number of Category "A " men held under appeal in the industry at the end of February of the current year was 220. 419. District Man-power Officers in the four main centres, which are almost the only ones affected, report that the staffing of factories has been much assisted by the active co-operation of their Manpower Utilization Committee. In particular, co-operation has been extended in the engagement of inexperienced labour in an endeavour to keep up production, especially for the Armed Forces. 420. Notwithstanding the decline in military orders, the maintenance of output at a high level —• to meet growing civilian requirements —will make necessary the retention of the present labour force and the diversion of additional men to the industry. (xi) Engineering 421. The total labour content of the engineering industry (all branches) as at the end of 1943 was estimated at 16,460, an increase of 4,364 on the 1939 figure of 12,096. Of the 1943 total, 2,401 were females and 14,059 males. 422. The engineering industry, which before the war was largely confined to a servicing role and to a lesser extent light manufacture, has blossomed during the war years as an important contributor in the munitions, ship building and repair, and manufacturing fields. Its servicing role has become still more important. 423. Pre-war industrial expansion saw the industry short-staffed, especially for moulders, fitters and turners, pattern-makers, tool-makers, and boilermakcrs. To meet the shortage, which was especially felt by the Railways workshops, several hundred Australian tradesmen were imported, and, in addition, a number of individual tradesmen in both Australia and Great Britain who wrote to the Placement Service seeking information regarding employment opportunities in New Zealand were encouraged to immigrate, and did so. 424. Notwithstanding the increase in workers from these sources, it had become necessary by the beginning of 1939 to consider ways of adding quickly to the labour force of the industry, and the Labour Department at that time sponsored a scheme for the training of auxiliary tradesmen in fitting and turning and welding. With the outbreak of war the auxiliary training scheme was extended, and by the time it was merged with the trade-training schools of the Rehabilitation Department (February, 1944) it had trained 478 auxiliary workers, 134 of whom were welders. 425. During the war years the demand in the industry itself and the direction policy of the Department resulted iti the return to the engineering industry of a large number of men who had formerly left it. To attain and hold the increase of over 4,000 on the 1939 figure it has been necessary for the Department to undertake the most active measures, especially in consideration of the demand of the Forces for engineering tradesmen. From the middle of 1942 to the end of March of the current year the Department has been responsible for the release from the Forces of 2,931 engineering workers. In addition, men directed from other industries during the year (earlier figures are not available) have totalled 1,996, while it is estimated that the total number of men at present held under direction in the industry is 4,000. As at the end of February, 1,920 Category "A " men were held on appeal in the industry. Notwithstanding these several aids to the industry, vacancies approved by the Department now stand at the high figure of 1,265 for males. The industry has also steadily demanded additional female labour, and during the last year the Department has directed 602 women workers from other industries to the engineering industry. 426. It is known that there are many hundreds of skilled and semi-skilled engineering tradesmen at present serving with the Forces. In particular, the Air Force has been responsible for the training of a large number of light-engineering workers. It is uncertain whether all of these men can be absorbed by the industry in post-war years, as the emphasis is rather on the basic engineering trades than on the trades which have been most pursued in the Air Force. However, given general expansion of the industry, retraining of ex-servicemen and their diversion to the short-staffed trades should be possible.

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427. Reports from the District Man-power Officers indicate a general expansion in engineering activity, with particularly noteworthy expansion in the Auckland, Christohurch, Hutt Valley and Wellington, and Dunedin districts. In the secondary centres such as Oamaru, Invercargill, Hamilton, Paeroa, Wanganui, and Palmerston North a shortage of engineering tradesmen is reported. These towns, for the most part, have seen the opening of new foundries or shops during the war period or considerable expansion of activity in existing shops and foundries. For example, in the case of Hamilton a branch factory was opened by the Colonial Ammunition Co. In Palmerston North, Invercargill, and Wanganui the industry has been mainly concerned with repair work and the manufacture of parts, while the two foundries at Thames have discharged heavy war contracts of a basic engineering type. 428. The man-power position in the industry, as far as the main centres are concerned, is now dealt with briefly : — Auckland.—A large number of both actual and potential vacancies is reported from this district, where approximately 6,000 men are employed by some 200 firms. The Man-power Utilization Committee has greatly assisted the Department during the last year, especially in connection with the comb-out of Category "A " men held on appeal and their replacement by other man-power. Turnover of labour has been high and the District Man-power Officer has been hard put to it to maintain shop strengths. Temporary transfers of labour as between firms have been inevitable. The outlook for the industry in this district is one of continued expansion, the degree of which will depend on the future of shipbuilding and repair work and, in particular, naval repair work. The shortage of labour which will result from any expansion will extend to semi-skilled and unskilled workers. The greatest demand will be for fitters and turners, boilermakers, and welders. In neither of the two latter trades are apprentices being trained at anything like the rate required to augment the labour force to the desired extent. Wellington and Hutt Valley.— In this district the greatest emphasis in the industry has been on munition manufacture and on the Woburn Railways workshops. As the manufacture of munitions has tapered, more labour has become available for general engineering, but it is estimated that there are still 1,800 males and 860 females employed on munitions or other war contracts in the Wellington and Lower Hutt districts. The total labour force of the industry in these two districts is estimated at 3,450. Rapid turnover of labour, especially in the large converted motor-engineering works of the Hutt Valley, has been reported, and the District Man-power Officer has had difficulty in maintaining staffs for urgent repair work—e.g., of American vehicles from the Pacific area. Ship repair and aeroplane manufacture and repair work have presented special difficulty during the last twelve months, but of late there has been a cut back in the manufacture of the trainer machines in which the De Havilland Aircraft Factory has been engaged. Canister and dry-cell-battery manufacture has expanded considerably in this district and heavy demands for labour have been met only with difficulty. Christchwrch. Utilization of all available local labour and transfer of labour from secondary towns in the South Island have been unequal to the task of manning all engineering shops in this centre. There has been some dilution of labour, as semi-skilled men have undertaken the work of tradesmen, but the process has gone as far as it can. Turners, fitters, moulders, and electricians in particular are in short supply, and bottle-necks in the output of certain firms have had to be overcome by diversion of men from other essential industries. In the immediate post-war period sufficient civilian demand should result in a general expansion of the industry, although the future of some of the semi-skilled men in the industry may be uncertain. Dunedin. The industry in this district has suffered during the last year by the loss of unreplaced tradesmen to the Forces, the most serious shortage has been for floor moulders and turners. In the engineering industry in Dunedin the services of moulding tradesmen arc crucial and active steps to train more of these workers are necessary. Approved vacancies for more than 100 tradesmen exist in engineering shops and foundries in Dunedin, but a considerably larger number of skilled workers could probably be engaged. (xii) Hotels and Restaurants 429. The provision of adequate suitable female labour for hotels and restaurants has been most difficult throughout the war years. At the present time it is estimated that there are some 1,600 female workers held under direction in restaurants, hotels, boardinghouses, &c. At 15th March, 1945, there were 707 vacancies, 676 of these being for women. 430. During the war years the labour position in this section of industry has been aggravated by the influx into main centres of servicemen and by the competitive employment opportunities for women workers. Further difficulties have been a high degree of labour turnover and absenteeism, and the engagement of labour in work of an unessential nature. 431. Ihe outlook is for a progressive easing of the situation as women become available from other industries. (xiii) Meat-freezing 432. In this industry there has always been some shortage of man-power during the peak months of the season owing to the size and momentum of the seasonal swing and the physically exacting nature of much of the work. The peak labour content of the industry (33 works) for the 1944-45 season was 13,246, against a content of 13,574 for the 1942-43 season: Activity in this industry reaches its peak in December and January and falls off markedly after March. In mid-winter the total labour force of the industry is not more than 5,000. Table 48 of the Appendix analyses the peak strengths of all freezing-works on a district basis.

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433. Throughout the war years there have been seasonal labour shortages. These have been met by directions, release of man-power from the Forces, and reservation of Category "A " men. At the end of November no fewer than 1,099 category "A" men were held under appeal in the industry, and mainly as a result of the direction of " Necal" personnel this number had increased to 1,625 by the end of February of the current year. At that date 766 " Necal " personnel were working under direction in freezing-works. A large proportion of the single men are now in the process of being combed out to man replacement drafts. 434. Seasonal labour for freezing-works constitutes a major problem in the Auckland, Hamilton, Gisborne, Hastings, New Plymouth, Wanganui, Palmerston North, Masterton, Timaru, and Invercargill districts. The experience of the Auckland district is typical of the other districts mentioned. In its case it has been necessary during recent seasons to direct student labour and clerical and warehouse employees from other industries, while last year the direction of " Necal " personnel, even though fewer than the quota set, helped greatly. Special problems presented by the industry during the season were— (a) Prolonged duration of the season. (b) Failure to obtain the full quota of " Necal " men. (c) Difficulty in redirecting men as a result of medical conditions. (d) Comb-out of Category " A " men towards the end of the season affected some works. 435. In many districts the man-power position of the industry deteriorated due largely to the seasonal nature of the work and the lack of suitable accommodation. In the smaller towns these problems are not so pressing, as the works are largely manned by workers who operate small holdings and who work on these between seasons. 436. The outlook for the 1945-46 season, unless large numbers of ex-servicemen enter the industry (and it is apparently an industry not greatly favoured by these workers), is for a further season of man-power difficulty. The Department is attempting to provide against this development by ascertaining in advance the peak labour requirements of the various works, the dates on which gangs of men will be required, and the combing of the local seasonal registers for suitable personnel for direction to works, 437. This work must remain largely seasonal in nature, and the solution to the man-power problem in the industry apparently lies along the lines of developing between-season employment in the districts where the major works are located (more particularly in the Hawke's Bay and South Canterbury districts), and in the provision of more accommodation at some of the works. (xiv) Essential Services 438. Included under this heading are such services as gas and electric supply, butcheries, bakeries, &c. 439. In this field man-power shortage has been a constant source of difficulty to the Department. Staffs of undertakings have been substantially maintained during the war years, but only per medium of stringent direction policy, release of man-power from the Forces, and reservation of Category " A " men. 440. Dealing with each of the main sub-headings already distinguished, the following remarks are made :— Electricity Generation and Supply.—ln almost all North Island centres there has been and remains a shortage of tradesmen, linesmen, and other workers engaged in hydro-electric-power generation and reticulation. The Public Works Department in particular is extremely short-staffed for tradesmen at Arapuni, in which district substation construction has been delayed by the shortage of carpenters, electricians, and electrical fitters. Despite most strenuous direction efforts, Karapiro remains understaffed for certain types of labour. In the Gisborne district a shortage of experienced linesmen is noticeable, while farther south at Lower Hutt and in Wellington extreme difficulty in meeting expanding labour requirements is being experienced. In Otago, rural reticulation has been delayed by staffing difficulties and maintenance work has had to be curtailed. With the increasing development of electric-power generation and supply, an expanding scope for the engagement of supervisory, technical, and skilled and semi-skilled workers of many kinds can be expected. The shortage of qualified technical workers in particular—i.e., men such as power-station superintendents, operators, and substation operators —must be regarded as a partially limiting factor in the desired expansion of this industry. Coal-gas Production and Supply. —In only a few centres has this section of industry presented a serious problem. Difficulties faced by the industry have been rather on the coal-supply side than on the man-power side, but in Auckland', Wellington, Christchurch, and Lower Hutt man-power has been difficult to supply. In Auckland in particular the shortage of suitable retort hands has presented a difficulty, while in Wellington the turnover of retort hands has been high. On the whole, through the direction of man-power from other industries, the Department has been able to maintain the labour force of this section of industry reasonably well. This state of affairs should continue. Butcheries.-—ln smaller centres little shortage of butchers is reported, but in the main towns a considerable shortage of skilled butchers capable of manufacturing small-goods has been experienced. The Department has assisted the position by the reservation of a limited number of Category " A " men under appeal and the direction of a small number of " Necal " personnel to butcheries during the last twelve months. The summer months have presented greater difficulty as a result of the temporary direction by the Department of a number of butchers to freezing-works. ' On the whole, it can be said that there is a shortage, but not a serious one, of skilled butchers, and this can be expected to persist for some time.

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Bakeries. —This is a section of industry which on certain occasions in particular localities lias presented a serious man-power problem. The total labour force of the industry is 1,535, of which number 1,039 are journeymen and 496 are others. There are 44 vacancies at the present time. Generally, the trade is understaffed for apprentices, journeymen, and labourers. During the war years the Department has found it most difficult to man the 500-odd bakeries of the Dominion. There has been a progressive increase in the output from bakeries, due mainly to the presence of large forces of servicemen. During the fifteen months ended 31st March, 1945, the industry lost a total of 310 workers, of which number 183 transferred to other industries and the balance of 127 entered the Forces. During the same fifteen months the industry gained by direction, voluntary engagement, and return of ex-servicemen a total of 408. In other words, the labour force of the industry has been more than held during the last fifteen months. A total of 217 Category "A " men are still held under appeal in the industry. Notwithstanding the increase in personnel and the reservation of Category "A " men, most bakeries have been called upon to work a considerable amount of overtime during the last twelve months. The general man-power position in the industry can be expected to improve, but there is a necessity for the training of a greater number of apprentices. (xv) Food Processing and Canning 441. Already showing signs of considerable development before the war, this is an industry which has achieved a notable expansion during the war years. The presence of large numbers of New Zealand and Allied troops in camps in remote parts of the country and the necessity for despatching overseas to the Forces and to the United Kingdom large stocks of canned foods have combined to explain this expansion. Existing canneries have everywhere been expanded, but particularly in Auckland, Hastings, Nelson, Paeroa, Wellington, and Christchurch has there been dramatic expansion. 442. In Auckland the dehydration of vegetables and their canning, as well as the canning of meat products, has attained a record high level. The industry during the last twelve months in this district has seen a marked turnover of labour, 580 workers leaving it, as against 600 entering. Vacancies at the present time are in the neighbourhood of 40. 443. Although the vegetable-dehydration plant at Hastings may not continue to operate after the war, food-canning in this district has nevertheless received an impetus which is likely to be maintained. It is possible that an expansion of jam making and canning will be undertaken, and this will absorb the bulk of any staff released from dehydration plants. Considerable use has been made of part-time workers in this district. 444. In Paeroa the development of the " Loyeda " fish-paste processing and canning industry, and also the establishment of a mussel factory at Coromandel, has increased the seasonal demand for labour. Modest expansion in both these fields is expected. 445. In Wellington there has been an extension in the output of Karitanc Products, Ltd., and fish-oil manufacture has actually been developed to the point of providing oil for export. A considerable increase in the manufacture of margarine has taken place, and the post-war expansion of the bulk of the products of this undertaking is anticipated. 446. Vegetable-canning has always been an important aspect of Nelson's economic activity. In 1944 the Internal Marketing Department established a dehydration plant at Motueka. This employed about 35 males and over 50 females. The firm of Kirkpatrick and Co. in Nelson has experienced great increases in the demand for its products and has been hard-pressed to obtain necessary labour during the season. Volunteers, part-time workers, college girls, and W.A.A.F.s have all been called upon to assist. 447. In Christchurch, too, the establishment of a dehydration plant has resulted in a considerable increase in the processing aud canning of foodstuffs ; the engagement of considerable labour, especially during the season, has resulted. 448. The food processing and manufacturing industry lias been one that has, regardless of the war, steadily expanded. As the population of urban areas increases and new food preserving and canning techniques are developed, a further expansion in this field can be expected. SECTION XVI.—THE REGIONAL EMPLOYMENT POSITION AND OUTLOOK (i) Some General Observations 449. The problem of special areas (due to the advanced decline of industry) that exists in Wales has no counterpart in New Zealand. The west coast of the South Island, which conies nearest to being a special area in this sense, does not, on account of its small population and the mobility of its labour, present any irremediable employment problem. 450. Apart from the decline of small erstwhile gold and coal towns and the arrested development of small townships within close vehicular reach of larger towns, population, and hence industrial activity, has increased in varying degrees everywhere in New Zealand. 451. The population of the South Island both in urban areas and rural districts has steadily increased from 384,400 in 1901 to 563,700 in 1945. On the whole, during these forty years the rate of increase has favoured rural districts, although the larger towns have in no instance receded in population. 11l this Island the most striking development has been in the Southland area and in the City of Invercargill. This fertile area has witnessed an expansion during the present century comparable with that of Taranaki in the North Island, which in many respects it resembles.

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452. It is in the North Island, however, where development has been most spectacular. Population in this Island has increased from 431,300 in J 901 to 1,116,300 in 1945, or approximately double that of the larger South Island. The ratio of absolute population increase between the two Islands during the last forty years has been approximately 4 to 1 in favour of the North Island. 453. The greater development of the North Island is generally explained by the following reasons :— (a) Early settlement of the South Island was induced largely by gold and coal mining activity, whereas the North Island was mainly pioneered by farmers. (b) As settlement in both Islands proceeded, town dwellers in the .South —especially in Canterbury —suffered a lack of adequate suitable building materials, whereas in the North Island building timber was being milled most actively. (c) For pastoral farming (and New Zealand is mainly a pastoral country) the farm lands of the North eclipse those of most of the South Island. (d) Generally the climate of the North is more equable than that of the South. (e) Migration from the South to the North between 1880 and 1900 stimulated the development of the North Island. Its gain from this transfusion attracted further people until its general population and industrial ascendancy over the South Island became largely self-perpetuating. 454. Herein lies the explanation of the more rapid development of the North and the tendency— observable long before the war —of population to shift gradually to the North. Under war conditions this trend has been accentuated, as the bulk of munitions, constructional, and general manufacturing activity has been concentrated in North Island centres. Man-power control has been responsible for an inconsiderable part of the northward trend, which is almost entirely explained by the voluntary transfer of labour to more attractive employment in the North. 455. Progressive expansion in the North Island does not necessarily involve a contraction of population and industrial activity in the South. The South Island is well favoured from the power, timber, farm, and industrial aspects, and needs only population and the planned dispersion of developing industries. It is a case of a temporarily overshadowed region, but in the long-run, particularly if given a considerable influx of immigrants, its potential farm and industrial resources might well enable it to correct the present difference between the two Islands. 456. In both Islands, but especially in the North, there has been concentration of population in and around large towns. In the North, Auckland, Hamilton, Palmerston North, Lower Hutt, and Wellington are the most noteworthy examples, while in the South, Christchurch, Dunedin, and Invercargill stand out. On the whole, the deep-seated drift from the rural areas has been arrested during the war years largely by the special measures adopted by the Department to protect the primary industries. 457. A more detailed treatment of the present employment position and the outlook of the various zones of the country now follows. For this purpose the zones distinguished are five in number, and include— (а) Northern North Island.—viz., the Whangarei, Auckland, Hamilton, Paeroa, Rotorua, and Gisborne Man-power Districts. (б) Southern North Island.—viz., the Napier, New Plymouth, Wanganui, Palmerston North, Masterton, Lower Hutt, and Wellington Man-power Districts. (c) Northern South Island.—viz., the Blenheim, Nelson, Christchurch, Ashburton, and Timaru Man-power Districts. (d) Southern South Island. —viz., the Oamaru, Dunedin, and Invercargill Man-power Districts. (e) West Coast, South Island.—viz., the Westport and Greymouth Man-power Districts. (ii) Northern North Island 458. Roughly one-third —621,500 —of the total population is located in this zone. Its increase in both population and industrial activity has been the most dramatic of all five zones. The centres of Whangarei and Gisborne have steadily grown, while a mushroom development has taken place in Hamilton and to a much lesser extent in the Paeroa district, two centres which have reaped advantage first from the wholesale opening up of farm lands after the last war and latterly from the development of urban industries. In Auckland and the surrounding district both trends have also been observed, but the spectacular development of industries of all kinds in the metropolitan area has been by far the most important single feature. 459. Seasonal unemployment in this zone is less serious than in any other, being mainly confined to the farming districts around Hamilton, Paeroa, and Gisborne. The absence of any considerable problem of this kind is attributed to— (а) The general economic development and diversification of the zone. Between seasons the industrial undertakings of greater Auckland largely take up the slack from adjacent districts. (б) The large numbers of small holders, especially in the far North, who work upon their holdings between seasons and undertake freezing-works, dairy-factory, and harvesting work in the season. (c) The warmer climate attracts many people, including retired workers, and this expands the general scope for employment in the zone. 460. For the whole zone it can be said that further expansion of employment in the smaller centres of Whangarei, Paeroa, Gisborne, and Rotorua depends on closer land settlement, while in Auckland and, to a lesser extent, Hamilton progressive development can be expected as existing industries expand and new ones are established. The probability is that the zone will for some time hold, if not increase, its lead iu industry and population over all other zones.

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discutsed empl ° ymeut P ° sition and outlook of each of th e centres in the zone are now briefly Whctngarei.—Apart from its large cement-works, some timber-mills, and a few coal-mines Whangarei is almost entirely a farming centre. Seasonal unemployment is not an important problem owing to the large number of small holders. Wartime expansion of industry has not been noteworthy and man-power shortages have consequently not been serious. Auckland,--Wartime labour shortages have been extremely acute in most industries pursued in this man-power district. Ihe food requirements of the Services, the expansion of munitions and ship building and repair work, and the general development of secondary industries to meet wartime demands have combined to strain the labour supply to the limit. In particular, a spectacular development in food processing and canning and, ship building and repair work has taken place Further growth m employment opportunities is expected to arise from constructional work especially deferred maintenance and the development of rubber, wood products, and builders' supplies, manufacturing, and. perhaps ship building and repair 7 * farmi " g ' ,om ° h » «*» #*■ I' » kbom 'C 7T V" i mt 'S ", 10 krgral ™ New Zeal.nd, Tim labour required for State forests absorbs all surplus man-power between seasons Hamilton- A number of secondary industries, including munitions-manufacturing has been developed m this centre, and further scope m the secondary industries field exists. Greatest scope however, lies m dairy-farming which is paramount in the district. During the war years extreme difficulty has been experienced m manning dairy factories, coal-mines, and hydro-electric projects Normally, between-season unemployment involves approximately 500 men, but given a degree of snouici give way to a shortage of man-power. G -h b^A e '~u} 18 J Jeteu tT ° remained comparatively unaffected by war developments. It has tnbuted substantially to the essential labour requirements of undertakings in other districts asone'suTCblZ develop I m , ent , and considerable between-season unemployment indicate this town as one suitable for regional development. Its port should assist in any such development. (iii) Southern North Island in inSrSr 1 Se °° nd to the Northern Norti Island zone in mdustnal activity. Metropolitan Wellington has seen a rapid development, though not on the scale of that enjoyed by Auckland City. There has also been rapid expansion in the TaL secondary !nd n Levin. eCI " Palm erston North, Now Plymouth, Wanganui, Hastings, Masterton, 463 Wlth the exception of Wellington and Lower Hutt, the towns mentioned all present a picture oi developing secondary industries superimposed on primary industrial activity. The secondary laid P / St t ? ken . up slack of between-season unemployment which has arisen as men have been laid off from freezing-works and dairy factories. During the war years betweeneason unemployment has not been acute. It is expected that the growing secondary industries will fnPalmerston North Id^ 7 ln . mos * of * heee towns - Already there is evidence of this happening in i aimerston North and Wanganui, while the recent establishment of clothing and canning factories and engineering-works in other towns such as New Plymouth, Hastings, MasterCard Levin promises to meet the between-season problem of the future ' laboWeSS TAT 3 "' 7 ™ dußtziea ™ P robabl J tlle bes * means of taking up the seasonal slack, the labour demand of the purely manufacturing industries is mainly for female labour This has neces sitated m the past peak public-works and building activity during the winter months. With the ic urn to more normal conditions, some off-season provision of this nature, varying with the development of each centre, will probably be necessary. y g aeveiopa growth i^dVme^olw oll^-7 7 ™ tOW T' given an ex P orfc market for woollenB a growth in domestic population, is one of expanding employment opportunities. Farming can expect improved? ° Pm " P l "*' f ~ k STfi in anfother SctfrNew 7° P T a' dU ? Dg the yealS haS been iu sllorter tkan tL Tafbut mucfLpeS gre '! devel °P m ® nt 111 secondary industries, discernible before • ' 4 oh a °c el erated by it, the wartime growth of Government functions and with it a lar»e to brtog'Xut ftbTrMge * » eoW " il, ™ e »V* ">* I>™g«r transport W« combmrf - 468. The position and outlook for each centre is now briefly commented upon:— Nafter and Hastings.- Both of these centres lie in a rich agricultural and pastoral district and as might be expected greatest difficulty has been experienced in manning freezing-works orchards' market-gardens shearing-sheds, and canneries. As elsewhere, there has of recent yearXen a marked L lo thfwk labour Md me W f anat ° na > hos P itals > an(i have presented the greatest difficulty MarketinTDenartmenJ tLt£ clothing-factories, and Internal a. n ™ k " le " kbout ' • rt lor the , future > Napier faces a degree of between-season slackening in employment and some decline in the employment of women. Hastings, too, is affected by the off-season wane K employment °PP°rt™ for , women should continue numerous-i.e in orchards, market-gardens and canneries. developed ImT unti7~the wnr , , rapidly develo P ed as dairying industry has developed, but until the war years it has been almost entirely devoid of secondary industries A dothmg-manufacturmg establishment has recently been opened in the town and several other manufacturing undertakings are also m the process of establishment. These should lead to a more

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balanced employment position in this centre with expanding employment opportunities. The development of new undertakings in New Plymouth has to a degree been influenced by data of untapped male and female labour which the Department has placed at the disposal of managements contemplating establishment in that town. very serious shortages of labour during the war years have been experienced m this district, The greatest difficulty has been experienced in meeting the demand for female workers in hospitals, hotels, and restaurants. There has been a considerable increase in female employment in the city during the war years as a result of the establishment of new factories, including clothing and boot and shoe manufacturing factories. Farm development and maintenance work, which has fallen into arrears seriously during the war years, is expected to absorb all between-season male surpluses. Palmerston North.—This is a centre which is doubly favoured, first on account of its central position, and secondly on account of the rich farming area which surrounds it. Until shortly before the war limited secondary industry was pursued, but in the few years immediately before the war a of secondary industries took place. This has been accelerated during the war years, particularly in the clothing and engineering industries. The most serious bottle-neck in the future expansion of this centre is in residential and industrial building. Masterton.—The establishment of clothing-factories in this centre during the war years and the stepping-up of constructional activity has come to replace the pre-war unemployment of the district with brisk industrial activity. Lower Hutt.—The demand for labour in this district is very great, and the potential demand for labour is still greater. A reduction in munitions manufacturing and maintenance of Service vehicles may permit some redistribution of labour, but cannot be expected to materially improve the skilledlabour position. More than 3,000 women are estimated to be employed in essential industries in the Hutt Valley, and almost all of the highly varied secondary industries in the valley are expected to continuously expand their demand for labour in the immediate post-war years. Wellington— The labour shortage in the capital has been on such a scale that the inflow of demobilized servicemen, " Necal " drafts, and workers from other centres has barely kept pace with the normal wastage of man-power and the calling-up of Category " A " men for service with the Forces. Less essential industries have been stringently combed for labour to enable the manning of essential undertakings, and the scope for further man-power from this source is negligible. Wellington City is fortunate in its almost complete absence of off-season unemployment, and the progressive expansion of existing industries is expected to afford developing employment opportunities. (iv) Northern South Island 463. This zone, with a population of 297,000, is scarcely an homogeneous one, as Nelson and Marlborough have little contact with Canterbury and look rather to Wellington as their centre. 470. Both Nelson and Marlborough, but particularly Nelson, possess a specialized group of primary industries—viz., hops, tobacco, fruit, and small fruit—which suffer serious male and female labour shortages during the spring and summer months. Between-season unemployment in both districts has always been a problem. Although man-power shortages have abolished it during the war vears, the basic tendency can be expected to reassert itself after the war. 471. Christchurch, Ashburton, and Timaru, with their greater industrial development, have never presented the same difficulty, although between-season unemployment in the last centre has always demanded public works or other State-organized activity. These three centres have experienced T re ij°V eBS aCUt ° ™ atl -P ower shortages during the war, but with the return to peace conditions this should disappear. None of these centres has developed in recent years to the extent that North Island centres have done, and the stimulation of industrial development in all three centres will be an important part of any scheme for regional development of New Zealand. Since the success of any such scheme m the long-run depends upon additional population, in the absence of immigration on a substantial scale it will be many yeare before the development of northern centres is likely to be emulated. 472. The present position and outlook for each centre are discussed, as follows :— Blenheim.—At present the male employment position in this town is satisfactory, but a shortage ot iemale workers m hospitals and hotels exists. As in the past, seasonal unemployment is likely to be a problem unless there is a development of secondary industry—for example, woollen and clothing manufacturing. The completion of the South Island Main Trunk line should assist this development! Nelson— Geographical location and inadequate transport services limit the scope for industrial development m tins ccntre. The main source of any development will probably come from the specialized primary industries, but there is some scope for the establishment of secondary industries, a development which would do much to correct the seasonal unbalance at present evident. The present employment is satisfactory, apart from the inevitable seasonal labour shortages. Christchurch. At the present time the male labour position is reasonably satisfactory but the supply of female workers for hotels, clothing-factories, and hospitals is very short. Skilled workers ot almost all kinds are m short supply, while there is an unsatisfied demand for labourers for the same types ot work. Such expansion as can be anticipated in this centre will apparently be in engineering clothing and footwear manufacture, and in the manufacture of builders' materials. Ashburton.—No serious labour shortage exists in this centre, but, in common with other centres some shortage of tradesmen is experienced. The secondary industries and services established in the centre should be sufficient to employ all women available for some time to come, but provision for the between-season employment of men will be necessary after the war. Existing secondary industries, notably clothing-manufacture and flour-milling, can be expected to expand, while there is a prospect ot some development in the manufacture of glass. Timaru.-Male labour supplies in the district are at the present time adequate, and, like most other secondary districts, in the South Island there is at present no serious shortage of female workers, borne expansion of secondary industry is anticipated, but it will probably be insufficient to absorb ail the labour available m the post-war period. Seasonal unemployment is normally a serious problem m this district, and special measures to provide against it will be necessary.

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(v) Southern South Island 473. With a population of 225,800, this zone ranks fourth in importance. It has similar characteristics to the Canterbury zone, and this fact should be borne in mind when studying it along the arbitrary zoning approach that has been adopted. 474. It is characteristic of the Southern South Island zone that most of the secondary industries in existence have been long established, but expansion has been slow. Invercargill alone—reflecting the great development of dairy-farming in Southland—is the only centre which has increased much in size, albeit this expansion has been by virtue of the city's entrepot trade rather than its secondary industry. 475. The Southern South Island zone is similarly situated to the Northern South Island zone, in that its industrial future depends largely upon the expansion of the population. 476. The main centres in this zone are now discussed briefly : — Oamaru.—No serious shortage of labour is at present experienced in this centre, although shops and offices have had staffs reduced in order to staff woollen-mills. Between-season unemployment has always been a problem in the Oamaru district, and secondary industries have not developed sufficiently to affect this aspect materially. Dunedin. —-In this centre the wartime demand for labour has been acute, and in particular the shortage of female labour has been more evident than in any other centre of the South Island. The future growth of woollen-mills, clothing-factories, foundries, and the confectionery industry will importantly affect the level of employment in this centre in post-war years. Probably because of its basic engineering activity, Dunedin is the centre which has perhaps the greatest stake in the general development of the South Island. Invercargill.—War conditions have made no appreciable difference to the employment sistuation in Southland. Most secondary industries have been established for some time. The war has not resulted in any new developments except for the manufacture of linen flax, the permanency of which is doubtful. Freezing-works and dairy factories employ a large number of seasonal workers, as do the milk-products-manufacturing industry, and the paper-mills. Coal-mines and sawmills are also in evidence in this district, and at the Bluff and Stewart Island fishing and oyster canning are noteworthy. It is unlikely that any dramatic expansion in secondary industry will be observed at any rate for some time to come, and greatest progress can be expected in farming. (vi) West Coast of the South Island 477. With a population of approximately 40,900, this zone is easily the smallest. It merits especial consideration on account of its geographical isolation and the long-term threat of economic decline which it faces. Farming in this zone is relatively unimportant and less efficient by comparison with the dairy-farming technique of the North Island and Southland. The main fields of economic activity continue to be coal-mining and timber-milling, and this must be expected to continue for some years. Rigorous climatic conditions and most restricted employment opportunities for both males and females in urban employment have led to a steady exodus from the coast to more favourable areas. For some years after the war such industries as coal-mining and timber-milling can be expected to maintain their present high level of activity (there has been considerable expansion during the war years), but ultimately the exhaustion of coal stocks as hydro-electric-power generation becomes more important will pose the question of whether to establish further industries on the coast —for example, woollen and clothing manufacture—or whether to stimulate the out-flow of man-power from the coast to centres of industry elsewhere. The wholesale development of exotic and indigenous afforestation projects on the West Coast appears to afford considerable scope for the engagement of male labour. 478. The two towns affected arc now discussed :— Westport.—This centre depends almost entirely on coal and timber, with some' dairy-farming activity. There is little prospect of industrial expansion, and the employment avenues for women in particular are most limited. The present labour position is satisfactory, with a keen demand for fit men in sawmills and coal-mining, &c. Greymouth.—Much the same picture as is seen in Westport is presented here. Timber and coal and gold mining all have a limited life, while the climate and location do not favour the development of primary industries. Labour of almost all kinds is at present fairly scarce, and likely to remain so for some time. As in the case of Westport, employment opportunities for women have been most limited, although a small clothing-factory which has opened during the war will correct this position to an extent. Nevertheless, the normal outflow of female labour from the district is expected to continue. SECTION XVII.- UNEMPLOYMENT AND EMPLOYMENT-PROMOTION MEASURES (i) The Incidence and Extent of Unemployment 479. New Zealand has attained a level of employment not previously reached. Although this state of affairs is attributed to heavy internal war expenditure and to the withdrawal of men and women from industry to serve with the Forccs, it is for the most part reflected in a general heightening of industrial activity. It is difficult to guage the extent of unemployment, if any, but if regard is had to the number and types of workers at present engaged on various employment-promotion schemes the conclusion that such workers as cannot now find employment in industry are marginal workers is inevitable. In the next Subsection the strengths of the various employment-promotion measures still engaging the attention of the Department are dealt with, and the entire Scheme 13 strength can be regarded as being made up of marginal workers.

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480. If the position as at the end of March, 1939, is consulted it will be found that the records of the pre-war State Placement Service show that at that time a total of 24,000 workers was enrolled with the Service for placement. Of this number, approximately 8,000 would comprise the irreducible number of unemployed marginal workers. This number therefore represented the core of unemployment at that time. The balance of 16,000 included men on certain employment promotion schemes, and this number substantially comprised seasonal workers laid off from various industries ; especially from farming and meat freezing and preserving and dairy factories. However, some thousands of these men were drawn from building and construction, national and local-body public works, commerce, and personal and domestic service. 481. With the general easing of the man-power position in industry, it can be expected that unemployment, if only present among marginal workers, will again arise to engage the attention of the Department. Whether unemployment can be confined to this class of worker will depend on the degree of success which attends any plan for the promotion and maintenance of full employment. (ii) Employment Promotion Schemes 482. Even though man-power is in short supply, the need for special assistance in keeping in employment the marginal labour force (which would otherwise rapidly become completely unemployable) has not entirely disappeared, though a further reduction in the extent of this assistance has become possible during the past year. 483. The following statement shows the operations of the various employment-promotion schemes under the control of the Hon. the Minister of Labour for the period from Ist April, 1944, to 31st March, 1945 : — Scheme No. 4F.-~This scheme provides subsidies for twelve months on the basis of £1 10s. per week for the first six months and 15s. per week for the second six months in respect of the employment of inexperienced labour on farm work. A total of 1,294 inexperienced farm hands has been placed under this scheme for training since its inception in 1939, and in an additional 246 cases house allowance had been paid. Of the whole number placed, none was in subsidized employment at the 31st March, 1945. Scheme No. 13.—This scheme provides for the full-time employment at award rates with local bodies and other employing authorities of registered eligible unemployed men. At 31st March, 1945, only 449 men remained in employment under this scheme. These men represented cases of visible handicap, medical disability, advanced age, or failing powers, and all except a negligible proportion had dependants. It is considered that, denied work, many of these men would deteriorate, whereas steady employment and the difference between social security benefit and award rates of pay enable them to maintain their health and a reasonably contented psychology, to provide a somewhat improved standard of comfort for their dependants, and to render useful service to the community. The numbers of men engaged in each main class of work are — Streets, roads, and reserves .. .. .. .. .. .. 359 School-ground improvements . . .. . . .. .. .. 9 River-protection .. .. .. . . .. .. .. 2 Vegetable-production .. . . .. . . .. .. 72 Recovery of essential war materials .. .. .. .. .. 3 Miscellaneous .. .. .. .. .. .. .. 4 449 Scheme No. 16: Subsidized Apprentices in Building Trade. —Since this scheme commenced in September, 1937, some 631 apprentices and 128 trainees have been placed, but there have been no men engaged on this scheme since October, 1943. Table 50 of the Appendix summarizes the disposal of the contracts approved under this scheme_ Scheme No. 16a : Subsidized Workers in Boot-manufacturing Industry.—A total of 29 men have been engaged under this scheme since its commencement in August, 1939, 1 of these contracts being in operation on 31st March, 1945, 17 having terminated, and the remaining 11 having expired. Numbers employed under the various Schemes.—Table 51 of the Appendix shows the numbers of men engaged under the various schemes in full-time subsidized employment from 3rd April, 1943, to 31st March, 1945. Financial. —Provision for expenditure incurred by the promotion of employment is subject to appropriation by Parliament in terms of the Public Revenues Act, 1926, and during the year under review the sum of £149,250 (gross) was appropriated from the Consolidated Fund under vote " Labour " for this purpose. The amount appropriated included £7,100 (gross) to cover the administration expenses, which wore met by vote " National Service " in the first instance and subsequently recovered from vote " Labour." The net payments during the year ended 31st March, 1945, and corresponding figures for the previous year, including administration expenses, are shown in Table 52 of the Appendix. It will be seen from Table 52 that the expenditure under the employment-promotion schemes during the year ended 31st March, 1945, was £125,041, compared with £157,253 during the previous year, a reduction of £32,212. In addition to the employment-promotion schemes discussed above, several schemes which were formerly administered by the Department have at least for the time being been abandoned. Among these are Scheme No. 13a (Noxious Weeds Eradication), Scheme No. 4b (Land Development Labour Subsidy Scheme and the Rabbit Extermination Scheme).

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APPENDIX TO THE REPORT OF THE NATIONAL SERVICE DEPARTMENT CONTENTS

Table No. Subject-matter. Page. 1 Analysis of Expenditure of the National Service Department during each 62 Year from 1941 to 1945 Strengths and Casualties of Armed Forces 2 Estimated Totals of Strengths of the New Zealand Armed Forces .. .. 63 3 Analysis of Strength of Armed Forces at 31st March, 1945 .. .. '' 63 4 Progressive Annual Totals of all Casualties incurred by the New Zealand Armed 64 Forces Men called up for Military service 5 Analysis of Ballots up to 31st March, 1945 .. .. .. .. 64 6 Classification by Districts and Type of Military Service of Men called in Ballots 1-23 65 7 Results of Medical Examinations of Men called in Ballots 1-22 .. .. .. 65 Appeals against Military Service 8 Determination of Appeals heard by Armed Forces Appeal Boards .. .. 66 9 Industrial Analysis of Men postponed or released from Service with the Armed Forces 66 following Appeal Board Action 10 Disposal of Appeals on Grounds of Conscientious Objection .. .. .. 68 11 Cases under the Jurisdiction of the Special Tribunal .. .. .. '' 68 12 Grade I Men made available to the Armed Forces by Armed Forces Appeal Board 69 Action 13 Classification by Pre-service Industrial Group, of Men whose Service had been 69 previously postponed, made available to the Armed Forces Releases from the Armed Forces 14 Estimated Releases of Men from the Armed Forces to Industry .. .. .. 70 15 Industrial Classification of Men released from the Armed Forces by the Action of 70 District Man-power Officers and Armed Forces Appeal Boards 16 Classification by Districts and Industries of Men of the 3rd Division (" Necal" 71 Personnel) held in Industry under Direction at 30th November, 1944 17 Classification, by Pre-service Occupation, of Women in the Royal New 72 Zealand Naval Service The Women's Land Service 18 Analysis of Applications, Strengths, and Vacancies .. .. .. .. 72 19 Analysis, by Districts and Type of Farm, of the Strength of the Women's Land 72 Service Man-power Utilization Councils and Committees 20 Schedule of Local Committees attached to the various Councils.. .. ' .. 73 Registration for Work of National Importance 21 Schedule of Registration Orders .. .. .. .. .. .. 73 22 Registration of Women under all Orders .. .. .. .. .. 74 Directions into Essential Work 23 Results of Directions given by District Man-power Officers .. .. .. 75 24 Monthly Progress of Directions given from 1st April, 1944, to 31st March, 1945 .. 75 25 Details of Movements within and into Ten Different Industrial Groups .. .. 75 26 Diagram showing Ratio of Directions given to Population—Males .. .. 76 27 Diagram showing Ratio of Directions given to Population—Females .. .. 77 28 Diagram showing Industrial Distribution of Persons held in Industry under 78 Direction

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Table No. j Subject-matter. Page. Restriction op inflow Into Industry 29 Results of Applications to engage Labour in Essential Industries .. .. 79 30 Results of Applications to engage Labour in Non-essential Industries .. .. 79 Termination of Employment in Essential Undertakings 31 Results of Applications to terminate Employment . . .. .. .. 80 32 Monthly Increase in Applications from 1st April, 1944, to 31st March, 1945 .. 80 33 Details of Cases where Permission to Terminate was granted .. .. .. 81 Industrial Absenteeism 34 Results of Application of Industrial Absenteeism Regulations .. .. .. 82 35 Industrial Classification of Persons reported for Unauthorized Absenteeism .. 82 Operations op Industrial Man-power Appeal Committees 36 Results of Appeals against Directions into Essential Work .. .. ., 83 37 Results of Appeals against Decisions regarding Termination of Employment in 83 Essential Undertakings 38 Results of Appeals against Fines imposed for Unauthorized Absenteeism .. 83 Operations op Vocational Guidance Centres 39 Analysis of Inflow and Outflow of Labour through Vocational Guidance Centres 84 40 Industrial Analysis of Permanent Placements by Vocational Guidance Centres .. 84 41 Placement by Vocational Guidance Officers of School Children in Holiday and 84 Seasonal Work Students and Teachers in Holiday and Seasonal Work 42 Number of Students from each University and Training College considered for 85 Placement in Essential Holiday and Seasonal Work 43 Directions and other Rulings given to Students and Teachers in respect of their 85 Placement in Essential Holiday and Seasonal Work Financial Assistance to Directed Workers 44 Classification, by Man-power Districts, of Amounts paid and Number of Persons 86 who have received Financial Assistance 45 Industrial Classification of Amounts paid .. .. .. .. .. 86 46 Industrial Classification op Notified Vacancies in Essential Work .. 87 47 Disposal of Approved Vacancies for Farm Labour .. .. .. 87 48 Analysis op Labour Content of Freezing-works .. .. .. 88 49 Analysis of Labour Content op Busiifelling and Sawmilling Industry .. 88 Employment Promotion Schemes 50 Summary of Contracts approved under Scheme No. 16 .. .. .. 89 51 Numbers of Men engaged .. .. .. .. .. .. 89 52 Statement of Net Expenditure .. .. .. .. ,. .. 89

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TABLE 1.-ANALYSIS OF EXPENDITURE OF THE NATIONAL SERVICE DEPARTMENT DURING EACH YEAR FROM 1941 TO 1945

Year ended 31st March, 31st March, 31st March, 31st March, 31st March, ,,, , 1941. 1942. 1943. 1944. 194.1. I0talAdministration expenses charged to vote " National Service " in the first instance and subsequently charged to War Expenses Account—• ££££££ Salaries .. .. .. 94,954 139,847 227,387 262,924 224,375 949,487 Other charges .. .. 79,538 98,897 156,786 143,352 124,587 603,160 174,492 238,744 384,173 406,276 34-8,962 1,552,647 Other expenditure charged direct to War Expenses Account— Defaulters'detention camps .. .. 12,297 172,813 133,246 92,767 411,123 Emergency Fire Service .. .. 72,022 130,420 150,745 14,424 367,611 Emergency Precautions Scheme 596 4,339 299,631 164,422 25,046 494,034 Home Guard .. .. 1,748 10,604 .. .. .. 12,352 Industrial mobilization .. .. 584 9,213 32,079 46,435 88,31.1 Women's Land Service .. 36 1,870 53,318 52,867 108,091 Women's War Service .. 15,482 9,537 Cr. 611 Or. 1,147 23,261 Auxiliary 176,836 354,108 1,007,657 939,475 579,354 3,057,430 Promotion of employment 2,412,786 1,288,432 374,179 157,253 125,041 4,357,691 expenditure met from vote " Labour"

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STRENGTHS AND CASUALTIES OF ARMED FORCES Table 2. —Estimated Totals of Strenghts (including Females) of the New Zealand Armed Forces

Table 3. —Analysis of Strength of Armed Forces at 31st March, 1945

Army. Air Force. Navy. Total. 1939 — September .. .. .. .. 1,000 1,000 1,000 3,000 1940— March .. .. .. .. 30,000* 4,000 3,000 37,000 1941 — March— .. .. .. .. 98,000* 11,000 4,000 113,000 1942 — March .. .. .. .. 107,000 18,000 5,000 130,000 September .. .. .. .. 127,000 24,000 6,000 157,000 1943— March .. .. .. .. 107,000 34,000 7,000 148,000 1944— March— In New Zealand .. .. .. 21,000 28,000 5,000 54,000 Overseas .. .. .. .. 55,000 13,000 4,000 72,000 1945— March— In New Zealand .. .. .. 16,000 23,000 4,000 43,000 Overseas .. .. .. .. 37,000 13,000 6,000 56,000 * Army strengths for 1940 and 1941 include a large Territorial Force which did only part-time training, including three months' intensive training per year. These Territorials were later mobilized for full-time service.

Army, Air Force. Navy. Total. Males. Females. Males. Females. Males. Females. Males. Females. In New Zealand .. 13,927 2,008 20,272 2,541 3,890 501 38,089 5,050 Overseas — European war zone .. 35,531 701 4,199 .. 3,621 .. 43,351 701 Pacific war zone .. 631 16 8,448 67 1,804 .. 83 Other locations .. 200 .. 547 .. .. .. 747 Sub-total .. 36,362 717 13,194 67 5,425 .. 54,981 784 Total strength .. 50,289 2,725 33,466 2,608 9,315 501 93,070 5,834

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Table 4.-Progressive Annual Totals of all Casualties incurred by the New Zealand Armed Forces

MEN CALLED UP FOR MILITARY SERVICE Table 5. —Analysis of Ballots up to 31st March, 1945

From Outset to— Army. Air Force. Navy. Total. March, 1942— illed 1:558 580 50 2,188 lssm g 736 141 175 1 052 5 > 715 332 7 5,854 Wounded 4,078 258 23 4'359 Total .. 12,087 1,111 255 13,453 March, 1943— Kj lled 3,165 1,373 264 4 802 I8Sm S 529 315 10). 945 7 >745 313 28 8,086 W °unded 9)1 33 482 38 9 >,53 Total 20,572 2,483 431 23^86~ March, 1944 —■ .. .. .. .. 4,733 2,303 337 7,373 Missmg 560 m 57 ' 931 sone f J 6,826 445 44 7,315 Wounded 13,358 664 m u ' m Total •• •• •• 25,477 3,726 558 29,761 March, 1945— iUed 5,970 3,012 425 9 407 pissing 420 477 51 948 J™," 8 , 6-400 509 48 6,957 Wounded 17,H3 805 133 18,051 Total •• •• •• •• 29,903 4,803 657 35,363 * These figures arc cumulative totals of all cases reported wounded to date.

Ballot No Bate of Number of j Type of Gazette. Men Gazetted j Service.* Classes included in Ballot. 9 " J 6,000 Territorial .. Single men aged 19 to 45 inclusive. 5 " T/i ATa ?!' 717 " '■ Single men aged 19 to 45 inclusive. 6 . •• Overseas .. Single men aged 21 to 40 inclusive. * " m .. •• Single men aged 21 to 40 inclusive. (i " oo/ivli Mir Temtonal All remaining single men aged 19 and 41 to 45 inclusive. 7 '' 7/5/41 lu'nnn n " " J 7 at age and a 8 e 41 during period since fifth ballot, a " oa,Ju\ }?'??? Overseas .. Single men aged 21 to 40 inclusive. Q " "a /a Ml oq'aofi Territorial .. Bulk of 18-year-old group, plus further inflow at ages 19 and 41. in " loVftVli Overseas• .. All remaining single men aged 21 to 40 inclusive. 1 " s/in/i t'tll Temtonal " Balance of 18-ytear-old group, together with inflow at age 18. To ■' WnWu\ " ■' [nflow a ge 18 since tenth ballot. " oA /f/fi Overseas .. Inflow at age 21 since ninth ballot. 14 " rt/V'U ?I'k2a Territorial " 1'Married men (without children) aged 18 to 45 inclusive. 5 " IZ/tui 7'a™ " " tMarried men (with children) up to age 28 inclusive, fi " 94/R/49 ol'ora n " , " framed men (with children) aged 29 to 31 inclusive. 7 " SJ'oak General .. fMarned men (with children) aged 32 to 34 inclusive. I " n/ii/io o?'™ " ■' tMarned men (with children) aged 35 to 37 inclusive. o " 99/19M9 St " '' tMarned men (with children) aged 38 to 40 inclusive. 90 " 97/7/Is n'rVr " ' • fMarr.ed men (with children) aged 41 to 45 inclusive. u •' -</'/« '••«» - Further inflow at age 18 and miscellaneous " seepages" into other classes. .. 10/11/43 4,077 „ .. Further inflow at age 18 and miscellaneous " seepages " into 99 other classes. .. -8/6/44 7,071 „ .. Further inflow at age 18 and miscellaneous " seepages" into other classes. 21/11/44 4,009 „ .. Further inflow at age 18 and miscellaneous " seepages " into other classes. I s™ike: nt ° fOTCe ° f th ° Sen6ral Ser ™ e 1)rovlsI ° 118 ' a11 m3n draw » in previous Territorial ballots were deemed to have been t Bach of these ballots included also the inflow at age eighteen, together with other " seepages " into classes previously drawn.

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Table 6. —Classification by Districts and Type of Military Service of Men called in Ballots 1-23

Table 7. —Results of Medical Examinations of Men called in Ballots 20, 21, and 22, and Comparison with Gradings of Men called in Ballots 1—19

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Territorial General Service. fJ Service: Overseas Percentage M .,., . Ballots Service: All Ballots of 11 ary rea. 2, 5, 6, Ballots 3, ,, ,, , -u 11 * combined. Dominion 8,10,11, 4,7,9,12. , q on oi Ballot 22. Ballot 23. Total. 13, 14, 15. 10 19 " - ,l - 1. Auckland .. 26,275 12,724 16,767 2,166 1,328 900 60,160 17-6 2. Paeroa .. 8,346 4,552 5,847 580 370 255 19,950 5-9 3. Whangarei.. 6,575 3,012 4,327 416 236 151 14,717 4-3 4. Hamilton .. 9,440 4,959 5,895 612 367 257 21,530 6-3 5. Wellington.. 19,085 10,789 11,640 1,504 903 625 44,546 13-1 6. Wanganui.. 8,484 5,393 6,845 786 471 294 22,273 6-5 7. Napier .. 11,009 6,473 8,112 862 580 377 27,413 8-0 8. N. Plymouth 5,337 3,581 4,853 598 288 223 14,880 4-4 9. Nelson .. 6,634 5,243 5,527 585 362 233 18,584 5-5 10. Christchurch 21,254 11,985 14,475 1,800 1,139 687 51,340 15-1 11. Dunedin .. 9,659 6,204 7,109 1,032 570 340 24,914 7-3 12. Invercargill 7,571 5,594 5,978 672 457 267 20,539 6-0 Whole Dominion 139,669 80,509* 97,375 11,613 7,071 4,609 340,846 100-0 Notes.— * (i) Of the 80,509 men called for overseas service, 34,494 had already been included in previous Territorial ballots. (ii) In 2,690 cases the calling up was subsequently cancelled by amending Gazette, notice. (iii) Apart from the men included in ballots as shown above, 551 have been called up under Regulation 44 following default in complying with the obligation to register for service.

Number of Men placed in Medical Grade Percentage of Men placed in Medical Grade Ballot Number. examined. Warily" Total - I. Unfit II. III. IV. I. Unfit II. III. IV. and and Deferred. Deferred. Per Per Per Per Per Per Cent. Cent. Cent. Cent. Cent. Cent. 20 .. .. 4,178 407 625 473 77 5,760 72-5 7-1 10-9 8-2 1-3 100-0 21 .. .. 2,594 258 300 362 53 3,627 71-5 7-1 9-9 10-0 15 100-0 22 .. .. 4,331 333 586 557 81 5,888 73-5 5-6 10-0 9-5 1-4 100-0 1-12 (single men) 58,60210,185 11,661 15,606 7,132 103,186 56-8 9-9 11-3 15-1 6-9 100-0 13-19 (married 64,33012,728 19,040 30,738 2,990 129,826 49-5 9-8 14-7 23-7 2-3 100 0 men) All ballots.. 134,03523,911 32,272 47,736 10,333 248,287 54-0 9-7 13-0 19-1 4-2 100-0

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APPEALS AGAINST MILITARY SERVICE Table 8. —Determination of Appeals heard by Armed Forces Appeal Boards (Period covered: 1st May, 1943, to 31st March, 1945)

Table 9. —Industrial Analysis of Men postponed or released from Service with the Armed Forces following Appeal Board Action

May, 1943- , July- October- January- .J, 0 ' t 1 a '' 4 , M Z°M4g_ determination of Appeal. March, September, December, March, ■ LW44, 1945. 1945. Number dismissed outright and withdrawn 1,213 689 540 963 2,576 4,768 5,981 Number dismissed (general service) subject 629 195 116 758 2,316 3,385 4,014 to time condition Number dismissed subject to New Zealand 99 2 3 3 8 107 service (all types) Number allowed and adjourned sine die 6,344 5,857 4,378 4,706 6,334 21,275 27,619 (not medically unfit) Number struck out (Grade IV) and 2,429 133 107 109 227 576 3,005 adjourned (medically unfit) Total appeals heard .. .. 10,714 6,876 5,141 6,539 11,456 30,012 40,726

(Position at 28th February, 1945) (These 28,441 men comprise all Grade I men aged 21 35 years inclusive with fewer than three children and who have had less than three years' overseas service, together with all Air Force and naval volunteers.) Aged '21-35 Years inclusive. Aged Mnrriprl Industrial Group. 20 Years Total Total. and under, aged Without Wit)! Children. Children. Iears ' Primary Industry— Sheep-farming .. .. .. .. .. 169 1,394 268 649 2,311 2,480 Dairy-farming .. .. .. .. .. 374 3,660 661 1,829 6,150 6,524 Other farming (including tobacco and vegetable) .. 282 3,064 433 1,166 4,663 4,945 All farming .. .. .. .. .. 825 8,118 1,362 3,644 13,124 13,949 Fishing and trapping .. .. .. .. 6 54 20 38 112 118 Wax growing and milling .. .. .. .. 2 7 5 17 29 31 Bush sawmilling and afforestation .. .. .. 47 593 141 378 1,112 1,159 Gold-mining .. .. .. .. . • 2 24 5 43 72 74 * Other mining (including scheelite and oil) .. .. 1 5 2 3 10 11 Quarrying .. .. .. .. .. .. .. 1 3 9 13 13 Sub-total .. .. .. .. 883 8,802 1,538 4,132 14,472 15,355 Building and Construction — Road, railway, hydro, &c., construction .. .. 5 46 40 117 203 208 Housing and other building construction .. .. 38 150 198 469 817 855 Sub-total .. .. .. .. 43 196 238 586 1,020 1,063 Transport and Communication— Railways (including workshops and motor services) .. 36 748 465 882 2,095 2,131 Tramways (including workshops) .. .. .. 1 2 22 29 53 54 Motor services n.e.i. (including garages) .. .. 34 68 77 316 461 495 *Shipping and harbour services .. .. .. 2 13 38 61 112 114 Air services .. .. .. .. • • .. 4 2 6 12 12 Post and Telegraph and radio broadcasting .. .. 23 138 67 155 360 383 Sub-total .. .. .. .. 96 973 671 1,449 3,093 3,189 Heat, Light, and Power — Electrioity production and supply .. .. .. 5 29 36 112 177 182 Gas production and supply .. .. .. .. 2 3 3 21 27 29 Sub-total .. .. .. .. 7 32 39 133 204 211 Secondary Industry—■ Engineering .. .. .. .. .. 134 731 348 707 1,786 1,920 Meat freezing, preserving, &c. .. .. .. 58 433 342 792 1,567 1,625 Butter and cheese manufacture .. .. . . 27 393 149 320 862 889 Grain-milling and cereal-food making .. .. .. .. 4 2 13 19 19 Sugar-refining .. .. .. .. .. .. 1 4 13 18 18 Bread, cake, and pastry making .. .. .. 19 62 36 127 225 244 Biscuit and confectionery making .. .. .. .. 2 2 6 10 10 Jam-making, fruit and vegetable preserving .. .... 4 8 14 26 26 Brewing and malting .. .. .. .. .. 2.. 4 6 6 Aerated-water and cordial making Other food and drink industries .. .. .. 1 25 13 49 87 88 All food and drink industries .. .. .. 105 926 556 1,338 1 2,820 2,925 * These figures exclude coal-miners, ships' personnel, ministers of religion, and police, totalling some 2,500.

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Table 9. —Industrial Analysis of Men postponed or released from Service with the Armed Forces following Appeac Board Action —continued

5*

Aged 21-35 Yeara inclusive. Aged Industrial Group. '"uncf* Married. Total -pota!. under. Single. " — o? e oWithout With Children. Children. Secondary Industry— continued. Eellmongering and woolscouring .. .. .. .. 15 7 15 37 37 Tanning .. - .. .. .. .. .. 1 28 24 39 91 92 Woollen and knitted goods manufacture .. .. 4 33 20 63 116 120 Silk-hosiery manufacture .. .. .. .... 1 3 2 6 6 Flock, felt, sack, rope, &c., manufacture .. .. 1 6 3 18 27 28 Hats and millinery manufacture .. .. .. .. .. 1 3 4 4 Clothing-manufacture n.e.i. .. .. .. .. 2 16 16 39 71 73 Boot, shoe, and slipper making .. ■ .. .. 11 47 47 90 184 195 Boot-repairing ,. .. .. .. .. .. 9 3 13 25 25 Other leather-working .. .. .. .. .. .. 2 3 5 5 Laundering, dry-cleaning, and dyeing .. .. . . 2 4 2 10 16 18 Other textile, clothing, &c., industries .. .. 1 1 2 5 8 9 All textile, clothing, &c., industries .. 22 160 130 300 590 612 Lime and cement making .. .. .. .. 2 8 9 22 39 41 Brick, tile, and concrete products manufacture .. .. 2 17 20 63 100 102 Asbestos, stone, and other mineral processing .. .... 2 1 4 7 7 Wallboard-manufacture .. .. .. .. .. 7 4 12 23 23 Timber-milling and joinery .. .. .. .. 4 49 32 72 153 157 Wooden box and case making .. .. .. 3 21 12 28 61 64 Cabinet and hard-furniture making .. .. .. 7 12 6 32 50 57 Upholstering and soft-furniture making .. .. 1 2 2 7 11 12 Other industries allied to building .. .. .. .. 1 4 5 10 10 AH industries allied to building .. 19 119 90 245 454 473 Glass-manufacture .. .. .. .. .. .. 6 3 17 26 26 Rubber and rubber-goods manufacture .. .. 2 14 5 10 35 37 Paint and varnish making .. .. .. .... 2 7 4 13 13 Soap and candle making .. .. .. .. .. .. 2 6 8 8 Manure-manufacture .. .. .. .. .. 8 2 22 32 32 Drugs and chemical manufacture .. .. .. 1 10 5 8 23 24 Paper and cardboard manufacture .. .. .. 1 3 11 14 15 Carton, cardboard-box, and paper-bag making .. .... 1 2 2 5 5 Printing, publishing, and bookbinding .. .. 4 14 21 62 97 101 Tobacco-processing and cigarette-making ,. .. 1.. .. 4 4 5 Other secondary industries .. .. .. .. 1 11 12 15 38 39 Sub-total .. .. .. .. 290 2,005 1,183 2,757 5,945 6,235 Commerce and Finance— Banks, insurance, trustees, &c. .. .. .. 3 9 11 47 67 70 Shops, warehouses, depots, &c. .. .. .. 34 155 85 310 ' 550 584 Stock and station agencies and storage .. .. 3 12 9 39 60 63 Sub-total .. .. .. .. 40 176 105 396 677 717 Public Administration and Professional — *Health and social welfare .. .. .. .. 9 97 58 114 269 278 Education .. .. .. .. .. .. 7 30 26 77 133 140 Defence (civil staffs) .. .. .. .. .. 8 16 12 36 36 *Lawyers, justice, and prisons .. .. .... 8 4 7 19 19 Government Departments n.e.i. .. .. .. 4 137 100 156 393 397 Local authorities n.e.i. .. .. .. .. 4 26 44 172 242 246 Sub-total .. .. .. .. 24 306 248 538 1,092 1,116 Miscellaneous Services and Professions — Entertainment, sport, and recreation .. .. .... 1 1.. 2 2 Hotels and catering .. .. .. .. .. 5 6 5 16 16 Musicians, artists, authors, &c. .. .. .. .. 6 7 13 13 Other services .. .. .. .. .... 4 1 3 8 8 Sub-total .... 16 8 15 39 39 Training for Industry— University and other students .. .. .. 148 362 6 .. 368 516 Total for all industries .. .. .. 1,531 12,868 4,036 10,006 26,910 28,441 Note. —The above figures exclude men held from service on other than occupational grounds (mostly on grounds of domestic hardship). * These figures exclude coal-minors, ships' personnel, ministers of religion, and police, totalling some 2,500.

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Table 10. —Disposal of Appeals on Grounds of Conscientious Objection

Table 11.—Cases under the Jurisdiction of the Special Tribunal

(Position at 31st December, 1944) Total number of appeals dealt with .. .. .. .. .. 5,117 Of these— Number withdrawn, struck out (Grade IV), or dismissed for lack of 944 prosecution Number adjourned sine die on grounds of public interest or otherwise .. 1,096 Remainder—i.e., cases heard on grounds of conscientious objection .. 3,077 Of the above cases heard on grounds of conscientious objection — Number— (i) Allowed .. .. .. .. .. .. 606 (ii) Dismissed subject to non-combatant service .. .. 1,226 (iii) Dismissed outright .. .. .. . . . . 1,245 Percentage —■ (i) Allowed .. .. .. .: .. .. 19-7 (ii) Dismissed subject to non-combatant service .. .. 39-8 (iii) Dismissed outright .. .. .. .. .. 40-5

(Position at 31 at December, 1944) (a) Classification by Age and Marital Status Under 21-25 26-30 31-35 36-40 41 Years All 21 Years. Years. Years. Years. Years. and over. Ages. Single men .. .. .. 9 97 86 35 24 22 273 Married without children .... 20 53 34 17 13 137 Married with children .. .... 5 41 71 36 9 162 Total .. .. 9 122 180 140 77 44 572

(b) Classification by Normal OccMpation Number normally engaged in— Farming .. .. .. .. 121 Other primary industry (sawmill, mining, &c.) 14 Transport and communication .. .. 35 Engineering .. .. .. .. 34 Building and construction .. .. 51 Miscellaneous factories .. .. .. 87 Shops, warehouses, &c. .. .. .. 79 Clerical work .. .. .. . . 74 Religion and theological studies .. .. 13 Other studies .. .. .. .. 11 Teaching .. .. .. .. 19 Other work .. .. .. .. 34 Total .. .. .. .. 572

(c) Classification by Estimated Annual Payment Number making payment of — Nil .. .. .. 312 Under £20 per annum .. .. .. 87 £20 and under £40 per annum . . . . 53 £40 „ £60 „ .. . . 22 £60 „ £80 „ .. .. 15 £80 „ £100 „ .. .. 5 £100 „ £150 „ .. .. 5 £150 „ £200 „ .. .. 1 Total .. .. .. .. 500 Total estimated annual yield .. .. £5,547 Average estimated annual yield per order .. £11 2s. Note.—The above figures exclude 72 cases (appeals dismissed subject to non-combatant service where financial obligations have been suspended).

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Table 12. —Grade I Men made available to the Armed Forces by Armed Forces Appeal Board Action

Table 13. —Classification by Pre-service Industrial Group, of Men whose Service had been previously postponed, made available to the Armed Forces

(Period covcred: 1st April, 1943, to 31st March, 1945) Period during which Release was effected. Total, Total Apri1, Number of Men made available— April, . T , October T . 19431943- A P nl ~ JlJ y- and December Januar y- A P ril > March June, September, „ and , ' March, 1944- ' 1944. 1944. 7 Q e j"J 1944> 1945. March, 1945 " iaa». ly-M. 1945. (а) Following withdrawal of an unheard appeal or dismissal of an appeal on its first hearing (the appeal being dismissed either with or without a time condition) — Single men .. .. .. 587 261 153 247 185 598 1,444. 2,031 Married men without children .. 199 29 26 48 31 97 231 430 Married men with children .. 1,046 47 38 54 43 80 262 1,308 Total .. .. .. 1,832 337 217 349 259 775 1,937 3,769 (б) Following withdrawal or review of a case where service with the Armed Forces had been previously postponed — Single men .. .. .. 2,405 404 259 228 370 2,584 3,845 6,250 Married men without children .. 542 36 44 48 130 546 804 1,346 Married men with children .. 2,056 107 136 100 237 987 1,567 3,623 Total .. .. .. 5,003 547 439 376 737 4,117 6,216 11,219 Total men made available 6,835 884 656 725 996 4,892 8,153 14,988

(Period covered : 1st April, 1943, to 31st March, 1945) Period during which Release was effected. Total April, Industrial Group. April, inril- Tulv- October Tniumrv- Total > 1043 ~ i943- X" September and December, Ja ™ aI y April, 1044 March, March, seI) ™™ Der ' November, 1944. fSr -March, 1945. 1944. 1944 ' J944 " 1944. 1945 ' 1945. Primary Industry— Fishing and trapping .. .. .. 14 1 3 2 1 13 20 34 Sheep-farming .. .. .. .. 234 32 26 18 8 203 287 521 Dairy-farming .. .. .. .. 745 58 36 18 17 518 647 1,392 Other farming (including tobacco and vegetable) 498 50 47 24 34 360 515 1,013 Max growing and milling .. .. .. 27 8 3 1 19 31 58 Bush sawmilling and afforestation .. .. 76 13 18 16 13 47 107 183 Mining and quarrying .. .. .. 28 4 5 2 5 30 46 74 Building and Construction— All building and construction .. .. 337 28 32 72 179 489 800 1,137 Transport and Communication — Railways (including workshops and motor 138 31 26 10 14 437 518 656 services) Motor services n.e.i. (including garages) .. 189 25 17 31 33 144 250 439 Other transport services .. .. .. 186 4 5 2 20 66 97 283 Post and Telegraph and radio broadcasting .. 81 5 3 2 218 30 111 Heat, Light, and Power — All gas and electricity production and supply.. 44 3 3 2 12 48 68 112 Secondary Industry— Engineering and metal trades .. .. 414 70 43 56 125 466 760 1,174 Meat freezing, preserving, &c. .. .. 316 33 30 20 15 144 242 558 Butter and cheese manufacture .. .. 114 7 5 2 10 288 312 426 Other food and drink industries .. .. 121 13 9 10 16 66 114 235 Textile, fibre, clothing manufacture and repair, 270 29 26 23 41 186 305 575 and leather industry Building materials, timber and furniture 123 6 17 20 85 136 264 387 industries Other secondary industries .. .. 129 6 12 4 22 60 104 233 Commerce and finance — Banks, insurance, trustees, &c. .. .. 118 9 3 2 7 10 31 149 Shops, warehouses, stock and station agencies, 268 22 20 19 29 112 202 470 storage, &c. Public Administration and Professional — All public administration and professional 427 30 38 13 29 185 295 722 (including Government Departments n.e.i.) Miscellaneous— Miscellaneous services and professions 23 4 1 2 1 4 12 35 Training for Industry .. .. .. 83 56 14 3 18 68 159 242 Ail groups combined .. .. 5,003 547 439 376 737 4,117 6,216 11,219

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RELEASES FROM THE ARMED FORCES Table 14. —Estimated Releases of Men from the Armed Forces to Industry

Table 15.—Industrial Classification of Men released from the Armed Forces by the Action of District Man-tower Officers and Armed Forces Appeal Boards (Period covered: 1st April, 1944, to 31st March, 1945)

Type of Release. Period during which Release was effected. Total Releases. Man-power and n ,, Appeal Board. UUler ' Outset to 31st March, 1943 .. .. 16,300 6,500 22,800 1st April, 1943, to 31st March, 1944 .. 23,900 8,000 31,900 1st April, 1944, to 31st March, 1945 .. 24,400 9,900 34,300 Outset to 31st March, 1945 .. 64,600 24,400 89,000

Industrial Group in which placed Number of Percentage following release from Forces. Releases. of Total. Primary industry— Fishing and trapping .. .. .. 48 0-2 Farming .. .. .. .. 6,386 26 • 2 Flax growing and milling .. .. 45 0-2 Bush sawmilling and afforestation .. 668 2 • 7 Coal-mining .. .. .. .. 232 0 • 9 Other mining and quarrying .. .. 87 0-4 Building and construction — All building and construction .. .. 3,223 13-2 Transport and communication— Railways (including workshops and motor X, 227 5 ■ 0 servicos) Motor services n.e.i. (including garages) .. 952 3-9 Other transport services .. .. 446 1 • 8 Post and Telegraph and radio broadcasting 453 1 • 9 Heat, light, and power — All gas and electricity production and 271 1-1 supply Secondary industry— Engineering and metal trades .. .. 1,246 5 • 1 Meat freezing, preserving, &c. .. .. 1,407 5'8 Butter and cheese manufacture .. 581 2'4 Other food and drink industries .. 501 2 • 0 Fellmongery, woolscouring, tanning .. 85 0-3 Textile, fibre, and clothing manufacture 297 1-2 and repair

Industrial Group in which placed Number of Percentage following release from Forces. Releases. of Total. Secondary industry—continued Leather working and repair .. .. 119 0-5 Building-materials manufacture .. 409 1 • 7 Timber-milling and joinery (including 562 2-3 box-manufacture) Furnishings-manufacture .. .. 282 1 ■ 2 Paper, &c., manufacture, printing and 315 1 ■ 3 publishing Other secondary industries .. .. 345 1 • 4 Commerce and finance— Banks, insurance, trustees, &c. .. 450 1 • 8 Shops, warehouses, depots, &c. .. 1,602 6-6 Stock and station agencies and storage 262 1 • 1 Public administration and professional— Health and social welfare .. .. 225 0'9 Education (not students) .. .. 252 1-0 Lawyers, justice, and prisons .. .. 63 0-3 Government Departments n.e.i. .. 505 2-1 Local authorities n.e.i. .. .. 283 1-2 Miscellaneous— Miscellaneous services and professions .. 308 1-3 Students .. .. .. .. 16 0-1 Industry not specified .. .. .. 222 0-9 Total .. .. .. 24,375 100-0

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Table 16.-Classification, by Districts and Industries, of Men of the 3rd Division ("Necal" Personnel) held in Industry under Direction at 30th November, 1944

~ i ,2 . 3 a Approved Industries. fi .g .2 Other g" | .— — " ~ Industries. °3 7 , . Building and I Meat-freezing Logging and Railways Coal-mining. r ,, Total " Sgf Man-power District. Farming. Construction. Works. Sawmilling. (2nd Division). Cheese Factories. Industries. -g £ | j_ - j j — Perm. Temp. ! Perm. Temp. ; Perm, j Temp. 1 Perm. | Temp. | Perm, j Temp. | Perm, j Temp, j Perm. Temp. Perm. Temp. Perm. Temp. 8 p ww • 9fi1 4 15 7 5 11 4 1 2 .. 19 .. 2 2 6 5 344 32 Whangarei .. 261 4 15 7 5 11 .. .. 57 2 77 28 46 21 1,207 496 £ uckl r d •• ■ Sfi 3 III 40 74 26 47 .. 96 .. 27 4 4 6 966 32 Hamilton .. ..536 6 .. lUd 2 " "« 41 4 5 6 223 20 :: :: IS :: £ . :: » :: > :: i :: « :: 5 :: r _ h - 5 » « Gisbome .. .. 106 3 38 1 38 .. 12 .. .. ;; 3 " 12 6 6 4 386 74 :: 275 -5 ;. g » .. > •• .. u . j « S S Wanganm .. ..155 4 16 4 3 10 23 .. 37 .. ■■ ? 6g Palmerston North .. 276 9 6 1/ 18 3 2 6 •• Masterton .. .. 136 7 10 .. 13 2 10 .. 2 lo 10 J •• " "5 J 10 5 Lower Hutt .. .. 25 1 JJ 6 17 15 13 85 •• 2 46 5 607 30 St":: :: 3 "2 "S "2 'I :: :: 21 . :: :: ... « - g \ >» g :: :: 9 4 1 1 i 2 u . 4 1 , , . :: \ j ! i «j I* SSEl" :: m » 2S '79 "2 :: .2 "2 , :: » :: » » g Ashbiuton .. .. 124 .. 8 .. 13 .. 7 .. 6 .. 2 .. . .. 4 .. 2 4 170 21 Tim.ru .. .. 156 33 25 17 1 .. 4 2 25 1 .. 5 . .13 12 3 9 306 5 Oamaru .. .. 92 2 7 .. 1 .. .. • H 2 .. .. ■■ •• •• TV v OOQ 77 ft 8 85 . - 4 • • 50 . . D\.A Dunedm .. 223 77 8 » ai 11 37 8 .. 29 492 67 Invercargill . . .. 304 .. 14 .. 2 46 .. 41 ■ ■ • • Whole Dominion .. 4,179 107 960 426 428 50 445 29 772 39 140 3 458 15 480 121 229 219 9,100 1,453

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TABLE 17.—CLASSIFICATION, BY PRE-SERVICE OCCUPATION, OF WOMEN IN THE ROYAL NEW ZEALAND NAVAL SERVICE

THE WOMEN'S LAND SERVICE Table 18. —Analysis of Applications, Strengths, and Vacancies at 31st March, 1945

Table 19. —Analysis, by Districts and Type of Farm, of the Strength of the Women's Land Service at 31st March, 1945

(Position at 31st March, 1945) Pre-service Occupational Group. Number. Percentage. Pre-servico Occupational Group. Number. | Percentage. Farming— Hospitals— All farming (including tobacco and 5 1-0 Nursing staff .. .. .. 1 0-2 vegetable) Domestic staff .. .. 10 2-0 Secondary industry— Sub-total .. .. 11 2-2 Engineering and munitions .. .. .. Food and drink industries .. 3 0 • 6 Hotels and catering— Woollen and knitting mills .. 1 0-2 Hotels and boardinghouses .. 4 0-8 Clothing-manufacture .. .. 4 0-8 Restaurants, &c. .. .. 5 1-0 Footwear and leather .. .. 1 0-2 Private domestic work (not at 13 2-6 Laundries .. .. . . .. .. home) Printing, paper, cardboard, &c., 6 1-2 ; manufacture Sub-total .. .. 22 4-4 Other secondary industries .. .. .. Miscellaneous— Sub-total .. .. 15 3-0 School-teachers .. .. 5 1-0 Others employed .. .. 29 5 • 8 Shops, warehouses, &c. — Students .. .. .. 12 2'4 General assistants .. .. 71 14-2 Housewives and domestics at home 77 15-3 Hairdressers, dressmakers, and 32 6-4 Unemployed .. .. .. 27 5-4 other skilled workers — Sub-total .. .. 150 29-9 Sub-total .. .. 103 20'6 Office workers (all industries) —• Typistes .. .. .. 80 16-0 Total .. .. .. .501 100-0 Other office workers .. .. 115 22-9 Sub-total .. .. 195 38-9 Note.—For occupational classification of W.A.A.C. and W.A.A.F., see 1944 annual report.

Girls Mauve™ Other Girls. Total. Farms.* Number of applications to join Women's Land Service received up to 31st March, 1,582 2,674 4,256 1945 Number on active strength at 31st March, 1944 .. .. .. .. 1,067 812 1,879 Number on active strength at 31st March, 1945 .. .. .. .. 1,149 701 1,850 Number of applications held up on occupational grounds .. .. .. .. 420 420 fNumber immediately available for placement .. .. .. .. .. 38 38 Number temporarily unavailable for placement .. .. .. .. .. 82 82 fNumber of approved vacancies existing at 31st March, 1945 .. . . .. .. 42 42 * The applications by girls on relatives' farms to join the Women's Land Service are applications to continue working as Land Girls on the same farms. t The vacancies for Land Girls exist in districts to which the girls available are unwilling to transfer.

Girls' on Relatives' Farms. Other Girls. District. Total Strength. Dairy- Other Total Dairy- Other Total farms. Farms. Aotal * farms. Farms. lorai * * * * Whangarei .. .. 36 3 39 (31) 23 1 24 (29) 63 (60) Auckland .. .. .. 49 4 53 (42) 27 3 30 (31) 83 (73) Hamilton.. .. .. 94 21 115 (142) 80 6 86 (86) 201 (228) Taumarunui .. .. 4 8 12 (..) 2 .. 2 (..) 14 (..) Paeroa .. .. .. 55 3 58 (47) 23 3 26 (34) 84 (81) Rotorua .. .. .. 73 3 76 (82) 48 1 49 (62) 125 (144) Gisborne .. .. .. 15 41 56 (46) 4 17 21 (19) 77 (65) Napier .. .. .. 17 62 79 (79) 9 61 70 (71) 149 (150) New Plymouth .. .. 93 5 98 (89) 49 3 52 (64) 150 (153) Wanganui .. .. 40 42 82 (69) 16 22 38 (41) 120 (110) Palmerston North .. .. 77 17 94 (95) 22 10 32 (42) 126 (137) Masterton .. . . .. 34 36 70 (61) 11 40 51 (48) 121 (109) Lower Hutt .. .. .. .. .. (..) 1 • • 1 (• •) 1 (• •) Wellington .. .. 1 1 2 (..) .. .. .. (..) 2 (..) Blenheim ,. .... .. 4 10 14 (18) 3 30 33 (28) 47 (46) Nelson 11 14 25 (17) 2 3 5 (8) 30 (25) Westport .. .. .. 3 .. 3 (3) .. .. ..(..) 3 (3) Greymouth .. .. 5 .. 5 (2) 1 .. 1 (2) 6 (4) Christchuroh .. .. 10 51 61 (55) 29 43 72 (89) 133 (144) Ashburton.. .. .. .. 1 1 (..) 1 3 4 (..) 5 (..) Timaru 1 31 32 (35) 7 20 27 (37) 59 (72) Oamaru 2 13 15 (12) .. 6 6 (9) 21 (21) Dunedin .. .. .. 14 64 78 (75) 8 31 39 (68) 117 (143) Invercargill .. .. 29 52 81 (67) 7 25 32 (44) 113 (111) Total .. .. 667 482 1,149 (1,067) 373 328 701 (812) 1,850 (1,879) * Figures in parentheses show strength at 31st March, 1944.

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MAN-POWER UTILIZATION COUNCILS AND COMMITTEES Table 20. —Schedule of Local Committees attached to the various Councils

REGISTRATION FOR WORK OF NATIONAL IMPORTANCE Table 21. —Schedule of Registration Orders

(Position at 31st March, 1945) Industries for which Dominion Locations of Local Committees attached to each Councils have been set up. Dominion Council. Baking trades .. .. Auckland, Wellington, Christchurch, Dunedin. Biscuit-manufacture .. Nil. Butter and cheese .. .. Nil. Clothing-manufacture . . Auckland, Wellington, Christchurch, Dunedin. Coal-gas .. .. Auckland, Wellington, Christchurch, Dunedin. Electrical trades .. .. Auckland, Wellington, Christchurch, Dunedin. Engineering .. .. Auckland, Wellington, Christchurch, Dunedin, Whangarei, Hamilton, Thames, Gisborne, Napier, New Plymouth, Wanganui, Palmerston North, Lower Hutt, Nelson, Westport, Greymouth, Timaru, Invercargill. Food canning and preserving Nil. Footwear-manufacture .. Auckland, Wellington, Christchurch, Dunedin. Freezing-works .. .. Auckland, Wellington Christchurch, Dunedin, Gisborne. Furniture-manufacture . . Auckland, Wellington, Christchurch, Dunedin, Hamilton, Gisborne, Napier, New Plymouth, Wanganui, Nelson, Timaru, Invercargill. Laundries .. .. Auckland, Wellington, Christchurch, Dunedin. Motor-trades .. .. Auckland, Wellington, Christchurch, Dunedin, Whangarei, Hamilton, Thames (including Paeroa), Rotorua, Gisborne, Napier, New Plymouth, Wanganui, Palmerston North, Masterton, Nelson, Greymouth, Timaru, Invercargill. Optical trades .. .. Nil. Plumbing trades .. Auckland, Wellington, Christchurch, Dunedin. Printing and publishing .. Auckland, Wellington, Christchurch, Dunedin, Hamilton, Gisborne, Napier, New Plymouth, Wanganui, Palmerston North, Timaru, Invercargill. Road transport .. .. Auckland, Wellington, Christchurch, Dunedin, Whangarei, Hamilton, Paeroa, Rotorua, Gisborne, Napier, New Plymouth, Wanganui, Palmerston North, Masterton, Nelson, Westport, Greymouth, Timaru, Oamaru, Invercargill. Tanneries .. .. Nil. Tobacco-manufacture . . Wellington, Napier. Tramways .. .. Auckland, Wellington, Christchurch, Dunedin, New Plymouth, Wanganui, Invercargill. Wholesale grocery trade . . Auckland, Wellington, Christchurch, Dunedin, Napier, New Plymouth, Invercargill. Woollen-mills .. .. Auckland, Wellington, Dunedin, Napier, Wanganui. In addition, there are two industries where Utilization Committees have been established but where Dominion Councils have not been set up. These are as follows : — Coal-distribution .. .. Auckland, Wellington, Christchurch, Dunedin. Ship-building .. .. Auckland.

Name of Order. Date. ei ' a ' Classes covered.* Keierence. The Registration for Employment Order No. 1 .. 18/3/42 1942/71 Men. aged 46-49 inclusive, and women aged 20-21 inclusive. The Building and Allied Trades' Workers' Regis- 18/3/42 1942/72 Men with experience in building and tration Order 1942 construction, aged 18-70 inclusive. The Metal Trades' Workers' Eegistration Order 18/3/42 1942/73 Men with experience in engineering and 1942 metal trades, aged 18-70 inclusive. The Registration for Employment Order No. 2 .. 8/4/42 1942/97 Men aged 50 but not 51. The Timber-workers Registration Order 1942 .. 7/5/42 1942/130 Men with experience in the timber industry, aged 18-65 inclusive. The Registration for Employment Order No. 3 .. 15/7/42 1942/218 Women aged 22-25 inclusive resident in boroughs of Hamilton and Cambridge. The Registration for Employment Order No. 4 .. 3/8/42 1942/239 Women aged 22-23 inclusive. The Registration for Employment Order No. 5 .. 24/9/42 1942/281 Women aged 24-30 inclusive. The Registration for Employment Order No. 6 .. 8/10/42 1942/291 Men aged 51-59 inclusive. The Registration for Employment Order No. 7 .. 8/10/42 1942/292 Aliens aged 18-45 inclusive. The Scientists and Technicians Registration Order 3/2/43 1943/14 Persons with qualifications or experience 1943 in science or engineering. The Registration for Employment Order No. 8 .. 18/2/43 1943/24 Women aged 18-T9 inclusive. The Registration for Employment Order No. 9 .. 26/1/44 1944/5 Women aged 31-40 inclusive. * Except in the case of the Scientists and Technicians Order, exempted classes were provided for in each case, including, inter alia, persons already registered, mombers of the Forces, invalids, and other classes definitely unavailable for direction into (other) employment-

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Table 22. —Registration of Women under all Orders

(Position at 31st March, 1945) Women registered from 31st April, 1944, to 31st March, 1945. Total Women Total t0 Date rflffisterfid A)1 otller A S es - of Women Manpower District. up to 31st registered March, A, l/feL. gingle , ™ Carried Emp^ment. Children. Children.* Whangarei .. .. 4,080 358 16 5 6 4,456 Auckland .. .. 31,583 1,298 628 86 49 5 33,649 Hamilton .. .. 10,110 560 3 20 35 13 10,741 Paeroa .. .. 2,502 88 13 16 33 4 2,656 Rotorua .. .. 2,974 173 19 12 3 .. 3,181 Gisborne .. .. 2,757 188 10 44 28 1 3,028 Napier .. .. 4,864 298 21 50 31 8 5,272 New Plymouth. . .. ' 5,893 344 4 17 18 8 6,284 Wanganui .. .. 3,611 229 15 12 13 2 3,882 Palmerston North .. 6,321 397 10 36 12 14 6,790 Masterton .. .. 2,598 230 4 4 2 3 2,841 Lower Hutt .. .. 3,320 225 28 41 24 50 3,688 Wellington .. .. 16,220 762 55 157 122 52 17,368 Blenheim .. .. 608 75 1 16 13 3 716 Nelson .. .. 2,473 124 1 7 5 1 2,611 Weatport .... 668 50 2 8 3 1 732 Greymouth .. .. 1,946 148 .. 29 26 10 2,159 Christchurch .. .. 18,598 886 38 140 143 32 19,837 Ashburtonf .. .. .. 88 7 16 7 .. 118 Timaruf .. .. 5,502 173 7 32 7 1 5,722 Oamaru .. .. 1,569 132 .. 1 1 .. 1,703 Dunedin .. .. 12,132 886 .. 8 1 .. 13,027 Invercargill .. .. 6,533 500 2 8 2 2 7,047 All districts .. 146,862 8,212 809 766 583 216 157,508 V -Registration of married women with children under 16 years has not been' compulsory where domestic duties include the care of sucli eliildron. t Ashburtou registrations before April, 1944, were recorded at Timaru office.

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DIRECTIONS INTO ESSENTIAL WORK Table 23—Results of Directions given by District Man-power Officers

Table 24.—Monthly Progress of Directions given from 1st April, 1944, to 31st March, 1945

Table 25—Details of Movements within and into Ten Different Industrial Groups as a result of Directions given by District Man-power Officers

Outset to 31st March, 1944, Outset to 31st March, 1U45. Males. Females. 'Total. Males. Females. Total. Males. Females. Total. Total directions given .. 71,338 19,120 90,458 59,043 19,111 78,154 130,381 38,231 168,612 Of these directions given— Number withdrawn .. 6,545 2,230 8,775 5,226 2,902 8,128 11,771 5,132 16,903 Number complied with .. 63,545 16,408 79,953 53,536 16,044 69,580 117,081 32,452 149,533 Number not complied with 1,248 482 1,730 281 165 446 1,529 647 2,176 (under action at the end of period)

Number of Directions !! Number of Directions given to— Total 8 iven to— Total Period. Directions Period. Directions Males. Females. glven ' Males. Females. giveu ' Outset to 31st March, 1944 71,338 19,120 90,458 Outset to 30th September, 101,164 29,330 130,494 1944 Increase during—• Increase during — 1944 April .. 2,812 1,477 4,289 1944 —October .. 4,778 1,539 6,317 May .. .. 3,847 1,996 5,843 November .. 5,396 1,534 6,930 June .. .. 4,375 1,681 6,056 December .. 4,773 1,206 5,979 July .. .. 7,643 1,732 9,375 1945 —January .. 6,315 1,607 7,922 August .. .. 6,110 1,687 7,797 February .. 4,583 1,614 6,197 September .. 5,039 1,637 6,676 March .. .. 3,372 1,401 4,773 Total up to 30th September, 101,164 29,330 130,494 Total up to 31st March, 130,381 38,231 168,612 1944 1945

(Period covered : 1st April, 1944, to 31st March, 1945) (a) Males Circulation Inflow Inflow Inflow Inflow within the from the from the of of Total Industrial Group. Industrial other Armed Students on others not Directions. Group. Groups. Forces. Vacation. Working. Farming (including flax and vegetable) .. 1,156 1,309 5,578 477 171 8,691 Sawmilling and mining .. .. •• 606 716 881 46 155 2,404 Building and construction .. .. 2,613 2,222 2,843 114 521 8,313 Transport and communications .. .. 518 1,465 2,568 52 179 4,782 Engineering and power-production .. 1,213 1,996 1,280 124 228 4,841 Food and drink industries .. .. 1,327 6,226 2,280 385 1,021 11,239 Other secondary industries .. 1,149 2,884 2,026 142 356 6,557 Commerce and finance .. .. 331 1,191 1,461 300 218 3,501 Public administration and professional .. 207 1,076 965 116 182 2,546 Hotels, entertainments, and miscellaneous .. 162 266 163 6 65 662 All industries combined .. .. 9,282 19,351 20,045 1,762 3,096 53,536 (b) Females Circulation r n n™ Inflow Inflow Inflow Inflow within the r from the of of of Total Industrial Group. Industrial trom oinei Armed Students on Housewives, others not Directions. Group Groups - Forces. Vacation. Ac. Working. Farming (including flax and 711 361 26 351 75 132 1,656 EngTeerhig 136 602 27 14 146 152 1,077 Food and drink industries .. Ill 788 30 59 280 215 Textile, footwear, &c., industries 1,060 1,219 173 2J 613 551 3,645 Other secondary industries .. 76 391 38 14 147 118 784 Shops, warehouses, &c. .. 20 55 6 19 26 12 138 Office workers (all industries) .. 628 326 101 60 184 -07 Hospitals 404 1,438 67 258 221 332 2,720 Hotels and catering .. .. 981 745 48 154 265 443 2,636 Miscellaneous (transport, &c.) .. 43 186 11 35 84 40 All industries combined 4,170 6,111 527 993 2,041 2,202 16,044

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Table 26. —Diagram showing Ratio of Directions given to Population: Position at 31st March, 1945

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Table 27. —Diagram showing Ratio of Directions given to Population: Position at 31st March, 1945

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Table 28.—Diagram showing Industrial Distribution of Persons held in Industry under Direction by District Man-power Officers as at 31st March, 1945

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RESTRICTION OF INFLOW INTO INDUSTRY Table 29. —Results of Applications to engage Labour in Essential Industries

Table 30. —Results of Applications to engage Labour in Non-essential Industries

♦ July to October to January to in,A , n^r September, 1944. December, 1944. March, 1945. J ul y> 1944, to March, 194o. • Applications in Applications in Applications in Applications in respect of— respect of— respect of— respect of — Total. Males. Females. Males. Females. Males. Females. Males. Females. Total applications received from employers to 7,081 4,318 3,703 2,762 5,434 4,470 16,218 11,550 27,768 engage workers Number of applications dealt with .. .. 7,039 4,210 3,708 2,771 5,410 4,492 16,157 11,479 27,636 Details of applications dealt with—• Number of employees required .. .. 7,270 4,314 4,075 2,796 5,470 4,572 16,815 11,682 28,497 Number of names submitted .. .. 7,276 4,316 4,075 2,798 5,470 4,572 16,821 11,686 28,507 Number of names where permission was— Granted .. .. .. .. 7,087 4,109 3,987 2,673 5,321 4,440 16,395 11,222 27,617 Refused .. .. . . 189 207 88 125 149 132 426 464 890 Percentage refused .. .. .. 2-6 4-8 2-2 4-5 2-7 2-9 2-5 4-0 3-1 Number of persons directed into other work .. 102 148 56 110 105 108 263 366 629 * Figures relating to restrictions of inflow of labour into essential industries are not available prior to July, 1944.

Outset to 31st March, 1944. Outset to 31st March, 1045. — Applications in Applications in Applications in respect of— respect of — respect of— ■■ Total. Total. Total. Males. Females. Males. Females. Males. Females. Total applications received from employers to 14,037 18,189 32,226 17,239 18,109 35,348 31,276 36,298 67,574 engage workers Number of applications dealt with .. .. 13,967 18,096 32,063 17,173 18,109 33,282 31,140 36,205 67,345 Further details of applications dealt with— Number of employees required .. .. 15,565 19,966 35,531 17,729 18,349 36,078 33,294 38,315 71,609 Number of names submitted .. .. 15,577 20,002 35,579 17,738 18,361 36,099 33,315 38,363 71,678 Number of names where permission was— Granted .. .. .. .. 14,651 18,485 33,136 17,238 17,195 34,433 31,889 35,680 67,569 Refused .. .. .. .. 926 1,517 2,443 500 1,166 1,666 1,426 2,683 4,109 Percentage refused .. .. .. 5-9 7-6 6-9 2-8 6-4 4-6 4-3 7-0 5-7 Number of persons directed into other work .. 526 878 1,404 352 879 1,231 878 1,757 2,635

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TERMINATION OF EMPLOYMENT IN ESSENTIAL UNDERTAKINGS Table 31. —Results of Applications to terminate Employment

Table 32.—Monthly Growth in Number of Applications from 1st April, 1944, to 31st March, 1945

Outset to 31st March, 1044. 9 '1945° Outset to 31st March, 1945. Applications from— Applications from— Applications from— Total. Total. Total. Employers.j Employees. Employers. Employees. Employers. Employees. Total number of applications received 44,639 98,500 143,139 25,896 62,534 88,430 70,535 161,034 231,569 Number of applications dealt with 44,363 97,649 142,012 25,871 62,628 *88,499 70,234 160,277 330,511 during period Of these applications dealt with—• Number subsequently withdrawn .. 493 1,520 2,013 412 806 1,218 905 2,326 3,231 Number where permission to 1,599 17,050 18,649 730 8,490 9,220 2,329 25,540 27,869 terminate was refused Number where permission was 42,271 79,079 121,350 24,729 53,332 78,061 67,000 132,411 199,411 granted Percentage— Subsequently withdrawn .. .. 1-1 1-5 1-4 1-6 1-3 1-4 1-3 1-5 1'4 Refused .. .. .. 3-6 17-5 13-1 2-8 13-6 10-4 3-3 15-9 12-1 Granted .. .. .. 95-3 81-0 85-5 95-6 85-1 88'2 95-4 82-6 86'5 * This includes cases lodged during previous period hut not dealt with until the current period.

Number of Applications received from— Total. Period. Employers. Employees. Males. Females. Males. Females. Males. Females. Outset to 31st March, 1944 .. .. 44,639 98,500 143,139 Increase during — 1944—April .. .. .. .. 1,251 360 2,631 2,012 3,882 2,372 May .. .. .. .. 1,956 412 3,288 2,752 5,244 3,1.64 June .. .. .. .. 2,981 352 2,762 2,250 5,743 2,602 July .. .. .. .. 3,084 407 2,933 2,396 6,017 2,803 August.. .. .. .. 1,960 475 2,968 2,398 4,928 2,873 September .. .. .. 1,961 475 2,811 2,106 4,772 2,581 October .. .. .. 1,320 471 2,662 2,322 3,982 2,793 November .. .. .. 1,483 557 2,897 2,313 4,380 2,870 December .. .. .. 708 525 1,714 1,818 2,422 2,343 1945 —January .. .. .. 1,162 132 2,888 2,281 4,050 2,413 February .. .. .. 1,247 426 3,671 2,567 4,918 2,993 March 1,729 462 3,417 2,677 5,146 3,139 1st April, 1944, to 31st March, 1945 .. 20,842 5,054 34,642 27,892 55,484 32,946 Outset to 31st March, 1945 .. 70,535 161,034 231,569

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Table 33.—Details of Cases where Permission to terminate was Granted

6—H. 11a

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INDUSTRIAL ABSENTEEISM Table 34. —Results of Application of Industrial Absenteeism Regulations

Table 35.—Industrial Classification of Persons reported for Unauthorized Absenteeism

Outset to 31st March, 1944. March" 4 1945 Outset to 31st March, 1945. Males. | Females, j Total. Males. Females, j Total. Males. Females. Total. Number of complaints received by Man-power 15,571 11,008 26,579 9,893 6,353 16,246 25,464 17,361 42,825 Officers Number of complaints dealt with by Man-power 15,094 10,680 25,774 9,900 6,398 16,298 24,994 17,078 42,072 Officers Of these complaints dealt with, number where — (a) Allegation of offence not substantiated .. 3,501 2,485 5,986 2,236 1,620 3,856 5,737 4,105 9,842 (b) Warning given to worker .. .. 9,537 6,555 16,092 5,866 3,585 9,451 15,403 10,140 25,543 (c) Fine imposed . . .. .. .. 2,056 1,640 3,696 1,798 1,193 2,991 3,854 2,833 6,687

(Period covered : 1st April, 1944, to 31st March, 1945) (a) Males Number of Complaints lodged during PeriodApril July October January Tota1 ' Percentage. to to to to June. September. December. March. Complaints relating to male workers employed in— Mines and sawmills .. .. .. 522 477 274 298 1,571 15-9 Building and construction .. .. 695 514 414 364 1,987 20-1 Transport and power-production .. 156 164 166 161 647 6-5 Engineering and munitions .. .. 259 266 177 212 914 9-2 Food-manufacture .. .. .. 993 298 333 1,162 2,786 28-2 Other industries .. .. .. 656 465 430 437 1,988 20-1 Total .. .. .. .. 3,281 2,184 1,794 2,634 9,893 100-0 (b) Females Number of Complaints lodged during Period— April July October January TotaL Percentage, to to to to June. September. December. March. __ Complaints relating to female workers employed in— Engineering and munitions .. .. 227 108 153 194 682 10-7 Food-manufacture .. .. .. 289 187 85 104 665 10-5 Textiles and clothing manufacture .. 705 599 345 507 2,156 33-9 Hotels and restaurants .. .. 422 377 262 354 1,415 22-3 Other industries .. .. .. 519 311 229 376 1,435 22-6 Total .. .. .. 2,162 1,582 1,074 1,535 6,353 100-0

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OPERATIONS OF INDUSTRIAL MAN-POWER APPEAL COMMITTEES (Period covered: Outset to 31st March, 1945) Table 36.—Results of Appeals against Directions into Essential Work

Table 37.—Results of Appeals against Decisions regarding Termination of Employment in Essential Undertakings

Table 38. —Results of Appeals against Fines imposed for Unauthorized Absenteeism

<}*

1st April, 1944, Ou t t 0 8et 31st March, 1945. 31st March, 1944. : ; 31st March, 1945. Males. Females. (a) Appeals from employers against directions by District Man-power Officers— Total directions given by all District Man-power Officers .. 00,458 59,043 19,111 168,612 Number of appeals against directions heard in period .. 1,178 412 721 2,311 Percentage of appeals heard to directions given .. .. 1-3 0-7 3-8 1-4 Of the appeals dealt with, number— Withdrawn .. .. .. .. .. .. 225 (19%) 74(18%) 94(13%) 393 (17%) Dismissed .. .. .. .. .. .. 529(45%) 204 (50%) 317(44%) 1,050 (45%) Upheld .. .. .. .. .. .. 424 (36%) 134 (32%) 310(43%) 808 (38%) (b) Appeals from employees against directions by District Man-power Officers—■ Total directions given by all District Man-power Officers .. 90,458 59,043 19,111 168,612 Number of appeals against directions heard in period .. 1,204 601 806 2,611 Percentage of appeals heard to directions given .. .. 1-3 1-0 4-2 1-5 Of the appeals dealt with, number— Withdrawn .. . . .. .. .. .. 240 (20%) 98 (16%) 132 (16%) 470 (18%) Dismissed .. .. .. .. .. 469 (39%) 235 (39%) 247 (31%) 951 (36%) Upheld .. .. .. .. .. .. 495 (41%) 268 (45%) 427 (53%) 1,190 (46%)

1st April, 1944, 0u t t 0 set 31st March, 1945. 0u t t 0 8et Slat March, 1944. —- 31st March, 1945. Males. Females. (a) Appeals from employers against decisions by District Man-power Officers— Total applications to terminate (made by employers) dealt with 44,363 20,803 5,068 70,234 by District Man-power Officers Number of appeals lodged against decisions .. .. 398 272 108 978 Percentage of appeals lodged to decisions given .. .. 1-3 1-3 2-1 1-4 Number of appeals dealt with in period .. .. .. 655 279 107 941 Of the appeals dealt with, number— Withdrawn .. .. .. .. .. 145 (26%) 64 (23%) 25 (23%) 234 (25%) Dismissed .. 290 (52%) 166 (59%) 68 (64%) 524 (56%) Upheld 120 (22%) 49 (18%) 14 (13%) 183 (19%) (b) Appeals from employees against decisions of District Man-power Officers— Total applications to terminate (made by employees) dealt 97,649 34,679 27,949 160,277 with by District Man-power Officers Number of appeals lodged against decisions .. .. 2,881 1,337 657 4,875 Percentage of appeals lodged to decisions given .. .. 3-0 3-9 2-4 3-0 Number of appeals dealt with in period .. .. .. 2,653 1,356 665 4,674 Of the appeals dealt with, number — Withdrawn .. .. .. .. .. 438 (17%) 317(23%) 135 (20%) 890 (19%) Dismissed.. .. .. .. .. .. 1,327(50%) 611(45%) 282 (43%) 2,220(48%) Upheld .. 888 (33%) 428 (32%) 248 (37%) 1,564(33%)

1st April, 1944, to n , , , „ , „ . Outset to 31st March, 1945. 0ut8et to 31st March > 1945 - 31st March, 1944. "" Males. Females. Males. Females. Total. Total number of cases where fines have been 3,696 1,798 1,193 3,834 2,833 6,687 imposed Number of appeals arising from the imposition of 141 81 46 172 96 268 fines Percentage of appeals lodged to fines imposed .. 3'8 4-5 3-9 4-5 3-4 4-0 Number of appeals heard in period .. .. 132 84 46 168 94 262 Of the appeals dealt with, number of cases where appeal— Dismissed .. .. .. .. 60 (45%) 39 (46%) 33 (72%) 80 (47%) 52 (55%) 132 (50%) Fine reduced 27(21%) 15(18%) — (—%) 38 (23%) 4 (4%) 42(16%) Fine wholly remitted .. .. .. 45 (34%) 30 (36%) 13 (28%) 50 (30%) 38 (41%) 88 (34%) Note. —There have also been 120 appeals dealt with to date against decisions of District Man-power Officers regarding the restriction of inflow into industry. Of these, 31, or 26 per cent., have been dismissed;

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OPERATIONS OF VOCATIONAL GUIDANCE CENTRES Table 39. —Analysis of Inflow and Outflow of Labour through Vocational Guidance Centres

Table 40.—Industrial Analysis of Permanent Placements by Vocational Guidance Centres

Table 41—Placement by Vocational Guidance Officers of School-children in Holiday and Seasonal Work during Period December, 1944, and January, 1945

(Period covered : 1st December, 1942, to 31st March, 1945) Inflow to Centre from— Outflow from Centre. Total Inflow. Industries, &c. Primary Schools. Sg, Males. Females. Males. Females. Males. Females. Males. Females. Males. Females. Males. Females. Totals from 1st December, 1942, to 3,260 3,783 2,005 2,647 553 834 5,824- 7,264 507 285 4,417 6,061 31st March, 1944 — 1st April, 1944, to 31st March, 1945— Vocational Guidance Centre — Auckland .. .. 1,512 744 555 584 128 177 2,195 1,505 13 .. 1,866 1,238 Wellington .. .. 1,005 1,353 376 616 38 59 1,419 2,028 15 32 1,300 1,750 Christchurch .. .. 463 652 480 620 55 123 998 1,395 1 5 1,069 1,440 Dunedin .. .. .. 314 368 253 338 52 61 619 767 21 49 525 713 All Centres .. .. 3,294 3,117 1,664 2,158 273 420 5,231 5,695 50 86 4,760 5,141 Totals from 1st December, 1942, 6,560 6,900 3,669 4,805 826 1,254 11,055 12,959 557 371 9,177 11,202 to 31st March, 1945

(Period covered : 1st April, 1944, to 31st March, 1945) (a) Males (h) Females Outflow from— Outflow from— . Industry in which placed. p t Total. Industry in which placed. „ . Total. Industries nrimarv Primary Industries , Primary &c - 8ch °° Ia - *o. KS Soto ° ls - Farming .. .. .. 295 34 16 345 Farming .. .. .. 12 2 14 Building and construction .. 143 60 11 214 Engineering and metalwork .. 28 3 .. 31 Transport and communication 93 3 2 98 Food and drink manufacture .. 100 14 21 135 Engineering and metalwork .. 535 322 29 886 Textiles and clothing manu- 528 310 161 999 Meat, butter, cheese, fertilizers, 97 6 3 106 facture tanneries Footwear - manufacture and 77 4 11 92 Food and drink manufacture, 125 13 9 147 leather-working n.e.i. Other secondary industry .. 180 48 31 259 Textile, clothing, footwear 231 45 29 305 Commerce and finance .. 1,158 1,157 100 2,415 manufacture Public Service, local autho- 256 145 3 404 Timber, joinery, furniture &c., 212 58 31 301 rities, hospitals, n.e.i. manufacture Hotels and restaurants .. 241 20 12 273 Printing, publishing, stationery, 102 52 10 164 Private domestic work .. 115 9 8 132 and cartons-manufacture Miscellaneous .. .. 236 131 20 387 Other secondary industry .. 328 91 23 442 Commerce and finance .. 649 532 68 1,249 Public Service, local authorities, 101 50 3 154 hospitals, n.e.i. Miscellaneous .. .. 278 62 9 349 Total .. .. 3,189 1,328 243 4,760 Total .. .. 2,931 1,843 367 5,141

Males. Females. Males and Females. Type of "Work. " M ; Leaving T t , School Leaving , , School Leaving _ , Holidays. School. Holidays. School. total. Holidays. School. Total. Vegetable-growing .. .. 2 .. 2 2 .. 2 4 .. 4 Fruit-picking, tobacco, hops, &c. 23 .. 23 61 35 90 84 35 119 Harvesting .. .. .. 11 .. 11 .. .. .. 11 ,, H Other farming .. .. 94 5 99 G .. 6 100 5 105 Freezing-works .. .. 16 5 21 .. .. .. 16 5 21 Dairy factories .. .. 1 .. 1 .. .. .. 1 .. 1 Canneries .. .. .. 6 .. 6 .. .. .. 6 .. 6 Other secondary industry 76 9 85 71 1 72 147 10 157 Offices .. .. .. 27 1 28 54 1 55 81 2 83 Retail shops .. .. 123 4 127 606 7 613 729 11 740 Warehouses, wool-stores, &c. .. 59 14 73 .. .. .. 59 14 73 Other work .. .. 222 9 231 120 3 123 342 12 354 Total placements during 1944-45 660 47 707 920 47 967 1,580 94 1,674 season Placements, 1943-44 season .. 779 14 793 1,005 33 1,038 1,784 47 1,831

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STUDENTS AND TEACHERS IN HOLIDAY AND SEASONAL WORK Table 42. —Number of Students from each University and Training College considered by District Man-power Officers for Placement in Essential Holiday and Seasonal Work

Table 43. —Directions and other Rulings given by District Man-power Officers to University Students, Training College Students, and Teachers in respect of their Placement in Essential Holiday and Seasonal Work

(Period covered: October, 1944, to February, 1945) Number of Students Number of Students considered. considered. University College. _ Training College. Males. Females. Males. Females. Auckland University College .. 355 126 Auckland Training College .. 110 354 Victoria University College* .. 193 75 Wellington Training College .. 107 193 Canterbury University College .. 305 165 Christchurch Training College .. 92 197 University of Otago .. .. 6(i6 341 Dunedin Training College .. 48 44 Massey Agricultural College .. 77 10 Canterbury Agricultural College .. 3 Total .. .. 1,599 717 Total .. .. 357 788

(Period covered : October, 1944, to February, 1945) Males. Females. College™ Teachers. Total. y College? Teachers. Total. Students. gtudentSi btudents. Students _ __ Number placed in— Farming (on parent's farm) ■ 97 34 11 142 61 151 125 337 Farming (not on parent's farm) 201 63 17 281 37 47 34 118 Vegetable-growing .. .. 56 11 4 71 25 32 26 83 Fruit, hops, tobacco 19 13 .. 32 25 43 37 105 picking, &c. Other primary industry .. 50 13 .. 63 .. 1 .. 1 Building and construction .. 122 9 2 133 Transport and communication 43 13 4 60 5 1 3 9 Gas and electricity production 17 2 .. 19 and supply Engineering .. .. 97 7 .. 104 8 1 7 16 Freezing-works .. .. 182 51 16 249 .. .. Dairy factories .. .. 18 15 1 34 Jam and fruit preserving .. 8 .. 1 9 .. 11 3 14 Other food and drink industries 32 2 .. 34 10 26 6 42 Textiles, leather-work, &c. .. 17 1 .. 18 8 10 11 29 Building-materials and furni- 49 10 3 62 ture-manufacture Fertilizer-manufacture .. 20 1 .. 21 Other secondary industry .. 31 8 1 40 5 3 2 10 Wool-stores .. .. 244 29 3 276 Shops and warehouses .. .. .. .. .. 22 32 16 70 Government clerical work .. 4 .. .. 4 9 5 11 25 Other office work .. .. 66 15 2 83 18 19 10 47 Hospitals — Medical work .. .. 48 .. .. 48 16 .. .. 16 Nursing work .. .. .. .. .. .. 58 17 11 86 Domestic work .. .. .. .. .. 116 64 33 213 Dental work (including 26 .. .. 26 5 .. .. 5 hospitals) Scientific work .. .. 43 .. .. 43 15 2 .. 17 Domestic work at home .. .. .. .. .. 27 29 31 87 Domestic work, n.e.i. .. .. .. .. .. 29 13 37 79 Hotels and restaurants .. .. .. .. .. 50 69 25 144 Other work n.e.i. .... 30 6 2 38 26 10 5 41 Work not specified .. 9 6 15 19 59 9 87 Total placed in employ- 1,529 309 67 1,905 594 645 442 1,681 ment — Number exempted—■ , Oil medical grounds .. 43 6 11 60 35 40 78 153 Taking-permanent position .. 27 3 .. 30 22 1 3 26 Entering Forces .. .. 19 13 4 36 .. .. .. .. For studies . . .. 23 .. .. 23 18 : 4 5 27 On pther grounds .. .. 22 17 14 53 47 50 53 150 Failed to .report for work .. ... 1 1 2 .. .. 1 1 UnabJe.to-be placed .... 4 16 13 33 9 53 170 232 Total not placed in 138 56 43 237 131 148 310 589 employment Grand total for 1944-54 1,667. 365 110 2,142 725 793 752 2,270 season Total placed in employment 1,690" 388 212 2,290 625 947 558 2,130 during 1943-44 season Total not placed in employment 133 24 .. 157 -82 91 .. 173 during 1943-44 season Note.—The above figures include 89 cases where more than one direction or ruling was given to the same student.

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FINANCIAL ASSISTANCE TO DIRECTED WORKERS Table 44.—Classification, by Man-power Districts, of Amounts paid and Number of Persons who have received Financial Assistance at any Time up to 31st March, 1945

Table 45.—Industrial Classification of Amounts paid by way of Financial Assistance to Directed Workers up to 31st March, 1945

Males. Females. Total. Man-power District. at u , T N "$ ,er Amount Nu "f er Amount N, ™ ber Amount Persons. paid - Persons. paid - Persons. paid- £ s. d. £ s. d. £ s. d. Whangarei .. .. . . 1 13 7 10 .. .. 1 13 7 10 Auckland .. .. .. 58 1,821 9 5 90 1,140 6 7 148 2,961 16 0 Hamilton .. .. . . .. 2 111 2 3 3 75 13 8 5 186 15 11 Paeroa .. .. .. .. . . .. 2 6 15 9 2 6 15 9 Gisborne .. .. .. .. 1 29 17 2 3 10 3 0 4 40 0 2 Napier .. .. .. .. 3 14 6 5 11 129 15 4 14 144 1 9 New Plymouth ... .. .. 2 52 13 3 2 11 12 0 4 64 5 3 Wanganui .. . . .. .. .. .. 6 172 4 11 6 172 4 11 Palmerston North .. .. .. .. . . 5 60 16 6 5 60 16 6 Lower Hutt .. .. .. 8 491 18 10 20 381 15 10 28 873 14 8 Wellington.. .. .. .. 34 1,165 15 2 101 1,326 10 5 135 2,492 5 7 Nelson .. .. .. .. 6 34 18 2 19 128 4 11 25 163 3 1 Greymouth .. .. .. 4 143 1 6 3 61 13 3 7 204 14 9 Christchurch .. .. .. 4 79 7 9 48 622 0 10 52 701 8 7 Ashburton .. .. .. I 1 16 11 2 29 0 10 3 30 17 9 Timaru .. .. .. .. 3 30 15 11 .. .. 3 30 15 11 Oamaru .. .. .. .. 2 6 7 2 15 372 2 5 17 378 9 7 Dunedin .. .. .. .. 23 318 9 2 75 1,314 19 4 98 1,633 8 6 Invercargill .. .. .. 6 164 14 2 12 263 17 11 18 428 12 1 All districts .. .. 158 4,480 1 1 417 6,107 13 6 575 10,587 14 7 Increase since 1st April, 1944 .. 91 2,726 10 2 340 5,210 9 1 431 7,936 19 3

Industrial Group. . M"! 68 * Females: Total Amount Amount paid. Amount paid. ' paid. ... I 1 £ s. d. £ s. d. £ s. d. Farming .. .. .. .. . . .. ., 58 9 0 .. 58 9 0 Building and construction .. .. .. .. .. 359 9 10 .. 359 9 10 Railways (including railway workshops and N.Z.R. motor services).. 213 3 8 138 12 10 351 16 0 Shipping and harbour services .. .. .. .. 0 11 II .. 0 11 11 Post and Telegraph and radio broadcasting .. .. .. 27 12 6 95 10 1 123 2 7 Electricity production and supply .. .. .. .. 67 1 9 .. 67 1 9 Gas production and supply . .. .. .. .. 0 16 0 .. 0 16 0 Engineering and metal trades .. .. .. .. .. 1,807 10 6 316 i3 4 2,124 3 10 Meat freezing, preserving, &c. . . .. . . .. .. 68 19 0 22 18 2 91 17 2 Butter and cheese manufacture .. . . .. .. 184 13 5 23 3 5 207 16 10 Grain-milling and cereal-food making .. .. .. .. 7 2 3 108 4 5 115 6 8 Bread, cake, and pastry making and delivery .. .. .. .. 13 8 0 13 8 0 Biscuit and confectionery making . . .. .. .. 12 15 10 132 17 6 145 13 4 Jam-making, fruit and vegetable preserving .. .. .. 135 1 11 376 19 2 512 1 1 Tanning .. . . .. . . . . .. .. 52 18 7 . . 52 18 7 Woollen and knitting mills .. .. .. .. .. 128 10 11 1,121 18 8 1,250 9 7 Silk-hosiery mills .. .. .. .. 891 8 9 1 Flock, felt, sack, rope, &c., manufacture . . .. . . .. 20 0 1 20 0 1 Clothing-manufacture.. .. .. .. .. .. 149 i6 6 1,146 0 0 1,295 16 6 Boot, shoe, and slipper making and repairing .. .. . . 14 9 9 183 15 5 198 5 2 Other textile, leather, &c., industries .. ,. .. .. .. 608 608 Laundries, dry-cleaning, and dyeing . . .. .. .. 10 5 8 17 15 1 28 0 9 Lime and cement making .. .. . . .. .. 71 17 7 4 0 0 75 17 7 Brick, tile, pottery, concrete, &c., manufacture . . .. .. 30 14 11 . . 30 14 11 Wallboard manufacture .. .. .. .. .. 160 9 2 .. 160 9 2 Wooden box and ease making .. .. .. .. .. 18 5 1 .. 18 5 1 Glass-manufacture .. .. .. .. .. .. 10 9 11 5 ig 4 16 8 3 Rubber and rubber-goods manufacture .. .. .. 52 5 11 105 5 6 157 11 5 Soap and candle making .. .. .. .. .. 56 6 5 29 11 0 85 17 5 Drugs and chemicals manufacture .. .. .. .. ., 48 15 11 48 15 11 Paper and cardboard manufacture .. .. .. .. 15 18 5 .. 16 18 5 Carton, cardboard-box, and paper-bag making .. .. .. .. 36 14 4 36 14 4 Printing, publishing, and bookbinding .. .. .. .. 7 15 0 246 9 19 6 Tobacco-processing and cigarette-making .. .. .. .. 469 9 409 7 9 Other secondary industries .. .. .. .. .. 188 139 17 5 141 6 1 Commerce and finance .. .. . . .. . . 16 4 10 25 12 2 41 17 0 Hea'th and social welfare (including Social Security Department, 14 3 11 1,176 10 7 1,190 14 6 Health Department, hospitals, &c.) Defence Department .. .. .. .. .. .. 191 17 3 44 12 11 236 10 2 Government Departments n.e.i. .. .. .. .. 339 11 6 156 1 11 495 13 5 Local authorities .. .. .. .. .. .. 187 17 6 ., 187 17 g Hotels and catering .. .. .. .. .. .. 560 130 15 3 136 1 3 All industries .. .. .. .. .. 4,480 1 1 6,107 13 6 10,587 14 7

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TABLE 46.-INDUSTRIAL CLASSIFICATION OF VACANCIES IN ESSENTIAL WORK NOTIFIED AT POINTS DURING THE YEAR ENDED 31ST MARCH, 1945

TABLE 47.-DISPOSAL OF APPROVED VACANCIES FOR FARM LABOUR FROM MARCH TO NOVEMBER, 1944

(a) Males Vacancies at— Industrial Group. jjj d . M iij. Mid- Mid- Mid-March, 1915. ♦ April, June, September, December, 1 Total. 1944. 1944. 1944. 1944. Priority, j Non-priority. Farminc 437 1,059 1,265 946 456 111 567 Sawmffling and forestry .. 341 457 408 434 388 35 423 Mminir and auarrvine .. • • 169 158 96 9o 192 54 24o BSg and construction .. 1,255 1,062 1,182 1,420 1,258 578 ,863 General engineering .. •• 690 'So? vta f.'t 'oor Food and drink manufacture .. 230 170 185 794 218 . Textiles and footwear .. .. 127 85 123 279 125 177 302 Timber and furniture industries .. 161 192 204 186 29 201 Other seoondary industries .. 357 313 210 249 200 Gas and electricity .. .. 68 39 37 39 88 3 91 Railways 120 165 71 185 134 77 211 Other transport and communication 50 57 117 256 91 1 . Other industries n.e.i. .. 360 687 473_ 415 267 574 Total.. .. .. 4,365 5,462 5,440 6,351 4,100 2,490 6,590 (b) Females Vacancies at— Industrial Group. Mid- Mid- Mid- Mid-March, 1945.* April*, June, September, December, ■ Total. 1944. 1944. 1944. 1944. Priority. | Non-priority. Varmi „ a 62 67 52 53 266 7 273 Officerwork " " •• 219 255 271 336 166 123 289 Food and drink manufacture .. Ill 371 156 230 166 110 276 Textiles and footwear .. .. 1,628 1,705 1,911 1,642 1,489 551 2,040 Other secondary industries .. 522 651 487 430 225 Transport and communication .. 25 24 22 26 13 ISX 68 8 593 617 586 597 593 24 617 Other industries n.e.i .. .. 98 121 163 140 22 46_ 68_ Tota l .. .. 3,686 4,315 4,287 4,267 3,205 1,587 4,792 * Previous to 1946 vacancies were not classified into priority and non-priority.

(a) Males Dairy- Sheep- Other Total farms. farms. Farms. Number of vacancies recommended to be filled .. 2,627 2,006 881 5,514 Number of vacancies satisfied up to 30th November, 2,264 1,429 744 4,437 1944 Number not required until after 30th November, 1944 46 38 27 111 Of vacancies satisfied number which were filled by— %"<££'rr*:. :: :: :: 'SS » ™ 3 '5S (b) Females Dairy- Sheep- Other T6tal _ farms. farms. rarms. Number of vacancies recommended to be filled .. 71 33 5 109 Number of vacancies satisfied up to 30th November, 63 22 0 yu 1944 Of vacancies satisfied number which were filled by 24 2 3 Land Girls

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TABLE 48.—ANALYSIS OF LABOUR CONTENT OF FREEZING-WORKS

TABLE 49.—ANALYSIS OF LABOUR CONTENT OF BUSHFELLING AND SAWMILLING INDUSTRY

Number of Number of Number of Man-power District. Works in t> K 7 P '!m ™ EL "P'°y^ s a * District Peak of 1942-43 Peak of 1944-45 Season. Season. Whangarei .. .. .. .. .. 1 290 302 Auckland .. .. .. .. .. 3 3 )2 60 3,061 Hamilton .. .. .. .. .. 1 433 6 06 Gisborne .. .. .. .. .. 3 798 693 Na Pier .. .. .. .. .. 2 1,354 1,170 New Plymouth .. .. .. .. .. 1 550 606 Wanganui .. .. .. .. .. 2 857 806 Palmerston North .. .. .. .. 2 748 821 Masterton .. .. .. .. .. 1 538 556 Lower Hutt .. .. .. .. .. 1 408 405 Wellington .. .. .. .. .. 1 375 379 Blenheim .. .. .. .. .. 1 120 114 Nelson .. .. .. .. .. 1 60 55 Christchurch .. .. .. .. .. 4 1,371 Ashburton .. .. .. .. .. 1 225 206 Timaru .. .. .. .. .. 2 509 524 Oamaru .. .. .. .. .. 1 250 204 Dunedin .. .. .. .. .. 2 558 535 Invercargill .. .. .. .. . . 3 872 832 Total .. .. .. .. .. 33 13,574 13,246

(Period covered : December, 1943, to December, 1944) Circulation within , ,, ,,, , Number of Wo^ ker ® the Industry. f w T r w ? W Workers Man-power District. Mills in % , of Workers of Workers employed District from other to other at the End ofl943 " Inflow. Outflow. Sources - Work ' ofl944 - North Island— Whangarei .. 14 377 17 24 78 94 354 Auckland .. 17 311 17 27 126 116 311 Hamilton .. 6 177 19 17 43 35 187 Taumarunui .. 29 992 103 108 220 174 1,033 Paeroa .. 9 31 16 12 29 10 ' 54 Rotorua .. 43 1,599 214 203 643 587 1,666 Gisborne .. 7 114 12 8 30 27 121 Napier .. 11 221 28 26 75 67 231 New Plymouth 8 98 10 6 29 23 108 Wanganui .. 8 123 9 10 44 49 117 Palmerston North 5 46 3 3 26 13 59 Masterton .. 7 104 10 14 39 33 106 Lower Hutt .. 3 123 7 31 42 27 114 Wellington .. 1 9 5 .. 4 4 14 South Island— Blenheim 4 35 1 3 10 7 36 Nelson .. 23 211 5 9 65 53 219 Westport. 14 113 4 8 37 38 108 Greymouth .. 42 967 85 72 194 229 945 Christchurch .. 13 173 21 19 91 64 202 Ashburton 5 28 2 2 36 30 34 Timaru 9 66 6 3 21 22 68 Oamaru .. Nil Dunedin .. 11 121 10 2 19 14 134 Invercargill .. 32 522 52 49 106 72 ■ 559 ' Total .. 321 6,561 656 656 2,007 1,788 6,780

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EMPLOYMENT PROMOTION SCHEMES Table 50. —Summary of Contracts approved under Scheme No. 16 as at 31st March, 1945

Table 51. —Numbers of Men engaged in Full-time Subsidized Employment under the various Promotion-of-employment Schemes from April, 1943, to 31st March, 1945

Table 52.—Statement of Net Expenditure for Year ended 31st March, 1945, and Previous Year

Employment-promotion schemes—■ £ £ £ £ Scheme No. 4b .. .. .. .. 1,023 Scheme No. 4f .. .. .. 16 174 Scheme No. 13 .. .. .. 116,886 143,667 Scheme No. 16 .. .. .. .. 63 Scheme No. 16a .. .. .. 54- 110 Insurance of workers .. .. .. 1 Youths' farm settlement .. .. 520 348 Eural housing bonus .. .. .. .. 778 Assistance to flax industry .. .... 23 Miscellaneous .. .. .. 464 567 117,941 146,753 Administration expenses .. .. .. 7,100 10,500 £125,041 £157,253

Carpenters. j Bricklayers. Total. Apprentices. Trainees. . . Contracts suspended .. .. .. 214 14 7 235 Contracts terminated .. .. .. 185 81 4 270 Contracts completed .. .. .. 199 28 12 239 Contracts cancelled .. 9 5 1 15 Totals .. .. .. .. 607 128 24 759

r)„i„ Scheme Scheme Scheme Scheme Total. No. 4f. No. 13. No. 16. No. 16a. 1943 3rd April .. .. .. 4- 636 1 4 645 26th June .. .. .. 4 622 1 4 631 18tli September .. .. .. 4 595 1 4 604 11th December .. .. .. 1 572 .. 4 577 1944 1st April .. .. .. 1 494 .. 2 497 24th June .. .. .. .. 495 .. 2 497 16th September .. .. .. .. 492 .. 1 493 9th December .. .. .. .. 476 .. 1 477 1945 31st March .. .. .. .. ■ 449 .. 1 450

NEW ZEALAND

SPECIAL ADDENDUM TO THE 1945 REPORT OF THE NATIONAL SERVICE DEPARTMENT

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

National Service Department, Wellington, 20th August, 1945. The Hon. the Minister of National Service. In this special addendum to the 1945 annual report on the activities of the National Service Department, I have the honour to submit a brief statement of the salient developments in the field of national service during the period commencing from 31st March, 1945 (the date of the report itself), and ending on 15th August—viz., VJ Day, or the day on which Japan's acceptance of surrender terms was announced. I have, &c., H. L. Bockett, Director of National Service and Controller of Man-power.

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NATIONAL SERVICE DEVELOPMENTS FROM 31st MARCH TO 15th AUGUST, 1945 Man-power Phases since 31st March, 1945.—VJ Day, celebrated on 15tli August, 1945, brought to an end Japanese resistance to the Allied Forces and with it almost six years of warfare unexampled in totality and destructiveness. Since the report on the activities of the National Service Department for the year ended 31st March was compiled there have been several important developments in the field of national service. These have culminated in the surrender of Japan and the sudden inversion of basic man-power problems and therefore the functions of the Department. The salient developments in this period arise in three brief phases—viz., from 31st March to Bth May, when Germany surrendered ; from Bth May to 15th August, when Japan surrendered ; and the phase commencing with the changes of policy that victory has made possible. During the first phase the main currents of man-power policy remained those observed during the year ended 31st March, 1945, and described in Section II of Part lof the main report. Summarized, they were : the maintenance of New Zealand's overseas contribution ; the intensification of the industrial war effort ; the implementation of the Middle East (Second) Division Replacement Scheme ; the industrial absorption of ex-servicemen ; and the relaxation of man-power control. Between the defeat of Germany and Japan—a matter of three months— these policy currents remained the dominant ones, except that it was no longer necessary to maintain a full Army Division in the field for employment against Japan and. at the same timq maintain current Air Force and Navy commitments. A regrouping of Forces involving the contraction of the overseas division' to two brigades and a substantial reduction- of both the Air Force and Navy became possible and was announced by the Right Hon. the Prime Minister on 2nd August. The nature of this reorganization is described below. YJ Day transferred the emphasis from mobilization and the replacement scheme to measured for the demobilization of the Forces, the relaxation of industrial man-power control consistent with the need for maintaining the labour force in industries of critical importance in the immediate reconstruction period, and the promotion of planning and organizational measures designed to realize and maintain a. state of full employment. Maintenance of Overseas Contribution and Continuation of Second Division Replacement Scheme. —From the beginning of December, 1944, to the end of July —a fortnight before the surrender of Japan —a total of 3,100 men was mobilized by Army, 2,850 by Air Force, and 550 by Navy. (Note. —These figures represent first postings only and do not include men who had previously .be,en in the Forces and who were remobilized during this period —e.,9., " Necal " personnel.) In the same period, as a result of the activity of Armed Forces Appeal Boards, nearly 7,000 Category " A " men were put at the immediate disposal of Army or were made available subject to a short postponement of call-up. The Reorganization of the New Zealand Forces. —When War Cabinet decided at the beginning of August to reorganize the New Zealand Forces there was a total of approximately .100,000 men on the combined New Zealand and overseas strengths of the three Service arms. In view of the depletion of Category " A " men held on appeal and the inadequate number of fit men attaining military age, it had been foreseen at the time of the introduction of the Second Division Replacement Scheme that a military contribution on this scale could not be maintained indefinitely. Accordingly, all efforts were directed to the maintenance of the full overseas contribution until the defeat of Germany, when a complete reorganization of the Forces was envisaged. The reorganization plan decided upon and approved by Parliament at the beginning of August involved the reduction of the total strength of the Forces

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from 100,000 men to 55,000. In particular, it was decided to repatriate the remaining veterans of the Second (Middle East) Division and regroup the division as a two-brigade force of 16,000 officers and men plus an immediate reinforcement draft of 2,000, as against the then total strength of 33,000. On regrouping, this reduced force was to be switched to employment against Japan. The Army establishment in New Zealaud was to be reduced from 16,000 (which included a reinforcement poo] of 5,000) to 8,400. Other small overseas groups which it was necessary to retain totalled 900. In the case of the Air Force, it was decided to reduce the then total strength of 35,000 to 21,500, while that of the Navy was to be reduced from 10,000 to 6,200. Although the addition of 45,000 men to the industrial labour force could be expected to lead to an overall easing of the industrial position, it would not immediately overcome the shortage of key and other skilled workers which was accentuated by the comb-oat of Category " A " men until then held under appeal in industry, as the gain to industry from the large number of men to be demobilized would be gradual. Happily, the defeat of Japan has rendered possible the immediate release of some thousands of men for farms and other essential work. Relaxation of Man-power Control. —In the main report reference is made to the intention of the Government to raise man-power controls as soon as practicable. In Section II of Part I of the report an italicized note inserted after the compilation of the report stated that, in pursuance of this policy, control had been withdrawn (Jane, 1945) from (a) wives of returned ex-service-men desiring to establish a home ; (b) married women forty years of age or more ; (c) young persons under eighteen years of age ; and (d) the widows of deceased servicemen of the present war. Early in August control was also removed from returned servicemen regardless of medical grading. These exemptions were at once observed, except that it has been necessary to defer the release from essential employment of a number of returned servicemen repatriated to New Zealand in one or other of the essential industry drafts until replacements are available. In addition, the protection of a number of undertakings conferred by declarations of essentiality was removed by the revocation of such declarations. Immediately following YJ Day the Minister announced the exemption from direction of the following further classes : (a) all married women irrespective of age : (h) all other women of thirty years of age or more ; (c) all men of forty-five years of age or more. Moreover, employers have been freed of the necessity to obtain consent for the engagement of labour within certain specified classes, provided they notify all such engagements to Man-power Officers within seven days. Most declarations of essentiality are to be revoked by the end of 1945, and some large groups before the end of September. Revocation of a declaration of essentiality results in (a) freedom of workers in the industry or undertaking concerned to leave it ; (b) freedom of employers to dismiss staff; and (c) the abandonment of direction powers to staff the industry or undertaking in question. In the meantime, regardless of the date of revocation of any declaration, all married women will, on application, receive automatic consent to leave declared industries if they desire to take up home duties. Revocation of declarations and a consequential contraction of the direction field is expected to proceed rapidly, until at the end of 1945, the only industries likely to remain under protection, will be— Hospitals and mental hospitals. Prisons, State Housing and Rehabilitation Departments, and possibly one or two other Departments. Hydro-electric schemes. Freezing-works and dairy factories. Dehydration and food processing for export. Sawmilling and building. Coal-mining. Woollen-mills.

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Public utility services such as gasworks, electricity supply, certain essential transport services including the Second Division of the New Zealand Railways, and possibly some other industries and undertakings of similar priority ranking —e.g., ship repair and the manufacture of housing requirements. These further relaxations are consistent with the policy of the Government, already referred to in the main report, to abolish man-power control at the earliest possible date. Cessation of Mobilization. —Mobilization activity as from VJ Day has ceased in all three Service arms. Such recruitment of man-power as may subsequently be undertaken by any or all of the three Services will be a matter for determination in the light of the Government's decision as to military peacetime establishments. The embarkation arrangements for the despatch of the Sixteenth (Army) Reinforcements have been cancelled and the bulk of this draft is being demobilized immediately. Demobilization Procedure. —Government some time ago gave consideration to a report on demobilization presented by a Committee set up to investigate this question. On the declaration of YJ Day the Right Hon. the Prime Minister was in a position to announce in general terms the demobilization procedure which had been determined. Briefly, it has been provided that the following priorities in demobilization are to be observed : — (a) On Occupational Grounds : — Farmers and farm workers. Shearers. Musterers. Dairy-factory workers. Bushfelling and sawmill workers. Coal-miners. Carpenters. Electricians. Plumbers. Painters. Bricklayers. Plasterers. In accordance with the procedure laid down for the withdrawal of men under the priorities established, it will be necessary for employers or other persons to make application to the appropriate District Man-power Officer for the release of the serviceman in question. The District Man-power Officer, if satisfied that the serviceman falls within the designated priority class, is to lodge an application for release with the Service arm in question. In addition to this procedure, individual survey forms, which, in accordance with the Demobilization Committee's earlier recommendations, have been completed in respect of every person serving with the Forces, are being distributed to District Man-power Officers. From these the District Man-power Officers will be able to select additional persons falling within the demobilization priority classes and lodge applications to the Service arm for their release. The effect of the two procedures in operation should be to procure the release to industry with all possible expedition of the bulk of key industrial personnel serving in New Zealand. Demobilization of personnel at present serving overseas will probably not involve an industrial priority approach, and these men will be repatriated in order of their length of service. (b) On Compassionate Grounds.—ln these cases District Man-power Officers will make application to the Services for the release of the men concerned, provided they are satisfied that good cause for release on compassionate grounds exists.

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(c) On Service and other Grounds, viz.— (i) Servicemen who have completed four years' service. (ii) Married men with children. (iii) Youths under twenty years and six months of age. (iv) Persons over thirty-five years of age. (v) Any other persons whose services are no longer required by the Service arm and who cannot be used to replace a person in one of the priority groups. Full Employment Research and Organizational Measures.—VJ Day has accentuated the necessity for research and organizational measures calculated to realize and maintain a state of full employment. These measures are discussed at some length in Section II of Part lof the main report. In the field of research the surveys of industrial absorptive capacity mentioned in that section are now being pushed ahead and staif is being deflected from other branches of the Department to this work. On the organizational side the preparation of legislation for the establishment of a National Employment Service, also referred to in Section II of Part I of the report, is in hand, and legislation is to come down during the present session.

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