POST AND TELEGRAPH DEPARTMENT (REPORT OF THE) FOR THE YEAR 1947-48

Appendix to the Journals of the House of Representatives, 1948 Session I, F-01

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1948 NEW ZEALAND

POST AND TELEGRAPH DEPARTMENT (REPORT OF THE) FOR THE YEAR 1947-48

Presented to both Houses of the General Assembly by Command of His Excellency To His Excellency Lieutenant-General Sir Bernard Cyril Freyberg, V.C., G.C.M.G., K.C.8., K.8.E., D.S.O. May it please Your Excellency,— I have the honour to submit to Your Excellency the report of the Post and Telegraph Department for the year ended the 31st March, 1948. I have the honour to be, Your Excellency's most obedient servant, F. HACKETT. General Post Office, Wellington C. 1, 25th June, 1948.

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FINANCIAL The revenue for the year ended the 31st March, 1948, was £8,974,448. Payments in respect of working-expenses (including interest on capital liability amounting to £746,316) totalled £8,956,316. The excess of receipts over payments was £18,132. The total amount of the cash transactions handled by the Department during the year was £665,477,131, compared with £661,482,981 during the previous year. The following is an analysis of the cash turnover : 1946-47. 1947-48. £ £ Departmental working-expenses and revenue .. 16,047,201 17,930,764 Other departmental cash transactions .. 287,279,518 305,194,267 Receipts and payments in respect of telegraph extension .. .. .. .. 1,818,511 1,005,840 Savings-bank deposits and withdrawals .. 135,127,636 141,213,872 Work performed for other Government Departments .. .. .. .. .. 221,210,115 200,132,388 Total cash turnover .. .. £661,482,981 £665,477,131 A detailed Statement of Receipts and Payments in respect of the working of the Post Office is shown in the Appendix (Table No. 1). STAFF PERSONNEL Comparative Return or Persons employed in the Department 31st March, 31st March, ■ Permanent staff — 1947. 1948. Administrative .. .. .. .. 14 14 First Division .. .. .. .. 4,800 5,218 Second Division .. .. .. 6,717 5,710 11,531 10,942 Temporary and casual staff .. .. .. 3,916 4,803 *15,447 115,745 Non-classified staff, P.M.'s, and assistants .. 217 221 Non-permanent staff, country postmasters and telephonists, including Railway officers .. 1,288 1,274 16,952 17,240 * Includes 385 serving with Armed Forces. f Includes 93 serving with. Armed Forces.

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Health of Staff The following table shows the average number of days on which employees were .absent on sick-leave during the years ended the 31st March, 1947 and 1948. The figures are not fully comparative on this occasion, as particulars in respect, of temporary ■employees are included for the first time in the 1947-48 figures: — Average Average Number Absence for Absence for on each Sick each Person Staff. Employee. employed. Year ended 31st March, 1947 Men .. .. .. 9,802 13-69 7-85 Women .. .. .. 1,485 13-90 9-85 Year ended 31st March, 1948 — Men .. .. .. 11,768 12-30 6-15 Women .. .. .. 3,238 13-23 7-85 It is recorded with regret that 39 employees died during the year. Officers serving with the Armed Forces As at the 31st March, the number of employees serving with the Armed Forces had -been reduced to 93. Of this number, 2 were serving with Navy, 41 with Army in Japan, 13 with Army in New Zealand, and 37 with the Royal New Zealand Air Force on an interim basis. It is expected that by the end of 1948 practically all these employees will either have returned to the Department or have decided to remain permanently with the Forces. Staffing Position Owing to the existing general shortage of labour and the keen competition for staff, the Department has again found recruitment difficult, with the result that it has not been practicable to maintain staff allocations at full strength. There is at present a shortage of approximately 800 units, of which 500 are required to fill immediate vacancies in the various departmental branches which provide service to the public. The remaining 300 are needed on the engineering side in order that the every-day maintenance and -construction work in connection with the Department's telecommunications network may be given the necessary attention. When additional supplies of telephone switchingequipment come to hand and the building position improves, several hundred more men will be required in order that major developmental work may proceed. Notwithstanding the foregoing, it is pleasing to record that the efforts made to recruit staff have not been unfruitful, in that at the end of the year the effective working strength of the staff was greater than it was twelve months earlier. With the continuing expansion of the Department's business, it is essential that the various staffing allocations be kept up to reasonable strength if service to the public is to be satisfactorily maintained, and every effort continues to be made to achieve this end. Ex-serviceman Officers on Special Leave Fifty-eight officers who accepted the privilege extended to returned servicemen of taking up to twelve months' special leave without pay to try other employment are still absent from duty. Training-schools The Department's training-schools continue to play a valuable part in the promotion of efficiency. Many ex-servicemen have availed themselves of the opportunity of attending refresher courses in various types of work. Schools for mechanics and mechanicians are conducted at Wellington, and for line staff at Auckland, Wellington, and

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Christchurch. Telegraph training-schools, where training in Morse and machine-printing telegraphy is given, are also conducted at Auckland, Wellington, and Christchurch. Tuition in telephone-exchange and toll procedure is given to female trainees at Wellington, where a school for typists is also conducted. A training centre was established at Trentham during the year and there are approximately 100 students in residence. SALARIES AND PROMOTIONS General Increase in Salaries A general increase in salaries as a result of the Arbitration Court's pronouncement on standard rates of wages was made effective from the Ist October, 1947, and all employees paid on a salary basis received an increase of £25 per annum. Those employees paid on an hourly basis were granted an increase at the rate of 3d. an hour, while those remunerated on a weekly basis received an increase of 10s. a week, provided they perform a full week's work. Part time employees were granted a pro rata increase. As a result of the general increase in salaries the maximum salary for postmen,, postal assistants, exchange operators, storemen, and chauffeurs has been raised to £360 per annum, and that for tradesmen and skilled linemen to £390 per annum. With both groups the commencing rate is £155 per annum. The maxima are reached in the sixth year of service. Clerks and telegraphists now receive a maximum salary of £425 per annum in the eleventh year of service, with a provision under which long-service officers who have completed eight years' service on the maximum salary and hold the prescribed qualifying examination may proceed to a salary of £440 per annum. The minimum salary rate for executive officers is now £460/£485. Further improvements were also effected in the salary scales for female officers of the Second Division, such as telephoneexchange attendants, shorthand-writers, and others. Promotions prom Second Division to First Division Another staff movement worthy of mention was the appointment of 630 Second Division officers to the First Division. The majority of these officers were returned servicemen, and the promotions, which were effective from the 1946-47 financial year,, were a continuation of the 450 promotions arranged in 1946 as a result of the resumption of the pre-war practice of promoting eligible Second Division officers to the First Division. In 1941 it became necessary, in order to safeguard the interests of soldier officers, to discontinue such promotions. This latest movement, however, will now permit the Department to revert to its normal policy of arranging promotions progressively throughout the year. APPEAL BOARD At the only sitting of the Appeal Board during the year 462 appeals were lodged and 124 appellants appeared before the Board. These appeals were adjudicated upon as follows : allowed, 17 ; withdrawn, 223 ; did not he, 13 ; disallowed, 209. Of the disallowed appeals, it was recommended by the Board in 5 cases that the appellants be granted equal grading with the appointees, while in 7 other cases the appellants, with the Department's consent, were conceded equal grading with the appointees. POST OFFICE WELFARE SCHEME The welfare scheme administered by the Post Office Welfare Trust Board continued to* function successfully and the membership is maintained at a figure in excess of 10,000. This scheme, which was established in 1945, has been the means of assisting in many-

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■deserving cases, especially those in which, officers have been laid aside by sickness. The cottages and flats which are maintained at holiday resorts for the use of contributors during periods of annual or sick leave have proved very popular and it has been possible to provide approximately 500 officers and their families with holiday accommodation at very reasonable cost. Now that the Department's ex-servicemen have resumed duty from the Forces and rehabilitation difficulties have been substantially solved, the Department's rehabilitation scheme, which was established in 1943, has been extended to provide an official welfare •organization which is interested in the welfare of officers generally. This organization is designed to assist officers in their individual problems and to encourage the development of cultural and recreational activities. SUGGESTIONS BOARD The number of suggestions received was 255. Of these, 45 were adopted or partly adopted. For the best suggestions rewards are given, and amounts were allotted to 32 -officers, the total being £149. POSTAL SERVICES INLAND MAIL-SERVICES Mail-service Contracts The contracts covering the performance of inland mail-services in the Auckland, Hamilton, Thames, and Whangarei Postal Districts expired on the 31st December, 1947, and were relet for a further term of two years nine months from the Ist January, 1948. Rural Boxes In accordance with Government policy, the rural delivery system has been considerably extended during the year, and this extension of facilities is reflected in the increase in the number of rural boxholders served. The number of boxholders on the 31st December, 1947, totalled 43,572, an increase of 2,982 on the figures for the previous year. AIR MAILS Inland The weight of letters carried by air within New Zealand during the twelve months -ended the 31st March, 1948, was 325,202 lb. In addition, 65,205 parcels were carried. The frequency of the trunk services in the Auckland-Welhngton-Christchurch-Dunedin-Invercargill link was increased during the year, but there was no extension of the network to serve additional towns. On the Ist October, when the National Airways Corporation assumed control of the service operated by Air Travel, Ltd., between Nelson-Westport-Greymouth-Hokitika, the Corporation found it necessary to discontinue the call previously made daily at Greymouth. Consequently air mails to and from Greymouth are now forwarded via Hokitika, but there is comparatively little delay in transporting such mails between Hokitika and Greymouth by surface means. Trans-Tasman Service The weight of mail despatched from New Zealand by the Trans-Tasman service during the year was 128,626 lb. In the reverse direction the weight of mail-matter carried totalled 200,055 lb. Except for a few minor interruptions, a daily time-table, Monday to Saturdays, has been operated, with occasional services on Sundays.

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Empire Service The thrice-weekly air service between Sydney and London lias operated regularly throughout the year. In May the practice of sending mails for countries between Australia and the United Kingdom by " Hythe" flying-boats was discontinued.' Since then all mails have been forwarded by the faster " Lancastrian " service operating' over the same route. This resulted in the transmission times for mails for India, Egypt, East and South Africa, &c., being reduced by from two to. four days. To provide an improved service to the public, air-mail correspondence forwarded by l the Empire service for foreign countries in Europe, Africa, and Asia was given air transmission throughout from the 3rd November. Previously a rate of Is. 6d. a half-ounce ensured air transit for this correspondence only to the point at which it was off-loaded from the Empire service. To cover the cost of providing the additional air transit to the country of destination, the postage-rate was increased to Is. 9d. a half-ounce. Tothose countries directly served by the Empire air service (including France, Egypt, Iraq, &c.), the rate of Is. 6d. a half-ounce has continued to operate. The weight of air-mail correspondence from New Zealand despatched by the Empire, service for the year ended 31st March was 50,334 lb. The total weight received was 87,002 lb. Trans-Pacific Services Air-mail connection to Hawaii, North, Central, and South America, and the West Indies has continued to be maintained by the use of the British Commonwealth Pacific Airlines service operating between Sydney (and Auckland) and Vancouver and by the Pan-American service operating between Auckland and San Francisco. Connection at Fiji with the B.C.P.A. service operating from Sydney to Vancouver is made by the weekly National Airways Corporation air service from Auckland. In addition, as from the 25th April, a direct flight once every fortnight has been operated by the B.C.P.A. service from Auckland. Thus by the B.C.P.A. service there are threedespatches every fortnight of mails for North America. Throughout the year the Pan-American Co. has operated a scheduled weekly service from Auckland to San Francisco. In addition, frequent non-scheduled flights have been maintained, with the result that over a period of some months since last December, New Zealand has enjoyed a twice-weekly service for air mails by the Pan-American service, making in all seven services a fortnight by both companies. On the 29th April the light-weight air-letter form was introduced in both directions between New Zealand and the United States of America, the postage-rate from New Zealand to the United States of America being fixed at Bd. each card. A reduction in the rate from 2s. to Is. 6d. a half-ounce for letters despatched by the B.C.P.A. servicecame into operation on the 3rd June. The rate for letters forwarded by the Pan-American air service remains at 2s. a half-ounce. The weight of air-mail correspondence despatched by the Trans-Pacific services for the year ended 31st March was 14,096 lb. Services to Pacific Islands The air services maintained by B.N.Z.A.F. planes between Auckland and Fiji, Samoa, the Cook Islands, Tonga, and Norfolk Island passed to the control of the National' Airways Corporation on the Ist November, and since then regular services have been continued. Air mails for Fiji are also conveyed by the direct Auckland-Vancouver service operated fortnightly by British Commonwealth Pacific Airlines, Ltd. Small letter-mails for Norfolk Island and Fiji, are also forwarded as opportunity offers by Service planes operated by the B.N.Z.A.F. The weights of air mails to the places mentioned despatched during the year endecb the 31st March were as follow : Fiji, 6,5261b. ; Samoa, 1,6441b.; Cook Islands,, 1.066 lb.; Tonga, 550 lb.; and Norfolk Island, 1,231 lb.

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OVERSEAS SURFACE MAILS Frequency of Despatch , With the extended use of air services, the volume of letter-mail forwarded by surface means has shown a considerable decline. In consequence, surface mails at present tend to consist largely of second-class mails and parcels. There has been little improvement during the year in the regularity of surface mails. Stability in this direction will become effective only when scheduled sailings by passengervessels to Australia, North America, and the United Kingdom are resumed. In the meantime the bulk of the surface mails for overseas destinations continues to be forwarded by irregular but frequent sailings of cargo-vessels. To the United Kingdom sailings have been frequent and at no time has there been difficulty in disposing of letters and newspapers. On the other hand, slight delays have, on occasions, arisen in the despatch of gift parcels. Reference to this is made later. Mails for Australia have also been exchanged at frequent intervals, and the placing of the " Wahine " in the service between Wellington and Sydney has been of great assistance to the Post Office in the disposal of mails for the Commonwealth. As regards mail despatches to North America, a reasonable service has been maintained, mainly by cargo-vessel. In the Pacific, regular steamer services have been maintained to Fiji, Tonga, Samoa, and the Cook Islands, with irregular but frequent services to the French Settlements of Oceania and to Nauru and Ocean Islands. Gift Parcels for United Kingdom and Europe The volume of gift parcels for the United Kingdom and Europe continued at a high level throughout the year. The number posted for the year ended 31st March, 1948, was 1,290,195, compared with 1,015,435 for the previous year. This represented an increase in weight of 4,867,129 lb. This increase was mainly the direct result of the lifting of the weight restrictions which had operated prior to October, 1946. Prior to the war, approximately 20,000 parcels were despatched annually to the United Kingdom. As may be expected, the tremendous increase which has taken place in recent years has resulted in a certain amount of congestion at the four centres immediately prior to the loading of vessels. Although the shipping companies have co-operated fully with the Post Office, minor delays in shipment have occurred, mainly through lack of shipping space sufficient to accommodate the great quantities of parcels offering. Normally at least two full clearances of parcels are made from each of the four centres every month, and when the vessels arrive in the United Kingdom on schedule the average time which elapses between posting and delivery of the parcels is two or, at the most, three months. INLAND POSTAL SERVICES Extension of Facilities Throughout the year continued efforts have been made to improve postal services. Several additional postmen's ' deliveries have been established, and many existing deliveries extended. . Numerous street posting-boxes. Lave been erected and clearancetimes have been improved. By the end of the year, Auckland and Wellington were

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the only places at which, the pre-war evening or early morning clearance of postingboxes had not been restored. The delay in these two instances is due solely to shortage of staff, but every effort is being made to overcome this shortage, and it is anticipated that the night or early morning clearance of posting-boxes at Wellington and Auckland will be restored in the near future. In the restoration of the evening clearances the position of areas which have developed in the post-war period has not been overlooked, and as far as practicable these areas are being included in the general scheme. Extended use has been made of road motor services and morning newspaper service cars for the conveyance of letter-mails. Action in this direction is continuing. MISSING POSTAL PACKETS The number of complaints concerning the non-delivery of postal packets of all kinds received and investigated by the Department during the year was 7,356. In 3,769 cases, more than half the total number, the inquiries resulted in the missing articles being traced or accounted for satisfactorily. These cases may be summarized as follow : Sender responsible for delay .. .. .. .. 1,108 Addressee responsible for delay .. .. .. .. 1,039 Post Office responsible for delay .. .. .. 395 No delay or responsibility not fixed .. .. .. 1,227 In 3,587 cases the manner of the disposal of the missing postal packets could not be determined. This figure represents 0-00118 per cent, of the total number of articles posted during the year. POSTAGE-STAMPS The denominations of the Pictorial series remaining on sale on the 30th April — namely, 2d., 2|d., 4d., 5d., 6d., Bd., 9d., Is., 25., and 3s.—were withdrawn from sale on that date, as were also all the Pictorial stamps overprinted " Official " and the Is. 3d. duty stamp. The following additional denominations of the King George VI series were placed on sale on the Ist May : 2d., 4d., 5d., 6d., Bd., 9d., Is., Is. 3d. (formerly a duty stamp), 25., and 3s. Thus a complete range of stamps of this series is now available from all post-offices. The Is., Is. 3d., 25., and 3s. values are printed in two colours and the others in a single colour. The following denominations of the King George VI stamps overprinted " Official " ■ —2 d., 4d., 6d., Bd., 9d., Is., and 2s.—were also placed on sale on the Ist May. A new issue of postage-stamps for use by the Government Life Insurance Department was introduced on the Ist August, 1947. All the designs for this series were prepared by Mr. J. Berry, of Wellington, and the printing was carried out by the intaglio process by Messrs. Bradbury, Wilkinson, and Co., Ltd., New Maiden, England. The use of these stamps is limited to the prepayment of postage on correspondence posted by the Government Life Insurance Department for delivery within New Zealand.

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Health stamps of two denominations, ljd. (Id. postage pins M. for " Health ") -and 3d. (2d. for postage plus Id. for " Health "), were issued on the Ist October. The .stamps, which were designed by Mr. J. Berry, of Wellington, and printed in England by Messrs. Waterlow and Sons, London, featured the well-known statue of Eros in Piccadilly Circus, London. Health stamps to the value of £110,727 were sold. One-third of that amount representing the health value, together with donations amounting to £lB7 collected by the Post Office, was paid to the New Zealand Federation of Health ■Camps. A special series of postage-stamps to commemorate the centenary of the Otago Province was placed on sale on the 23rd February, 1948. The series comprised four -denominations —Id., 2d., 3d., and 6d. The stamps featured the following subjects: Id., the ships " John Wickliffe " and " Philip Laing " at anchor in Port Chalmers Harbour, 1848 ; 2d., the Township of Cromwell; 3d., " First Church," at Dunedin; .and 6d., University of Otago (main building), Dunedin. The stamps were designed by Mr. J. Berry, of Wellington, and were printed by Messrs. Bradbury, Wilkinson, and Co., Ltd., England. They were in the usual large commemorative size and were printed in two colours by the intaglio process. TWELFTH CONGRESS OF UNIVERSAL POSTAL UNION, PARIS, 1947 The Twelfth Congress of the Universal Postal Union, held in Paris from the 7th May to the sth July, 1947, was notable for some important changes affecting the Union. Firstly, the Universal Postal Union, as one of the inter-governmental organizations having wide international responsibilities, was brought into relationship asa" specialized .agency " with the United Nations Organization, in accordance with Article 57 of the United Nations Charter. The agreement giving effect to the relationship, which was signed by the President of the Congress on behalf of the Universal Postal Union, provides for co-operation with and assistance to the United Nations and its principal and subsidiary organizations, as far as is compatible with the provisions of the Universal Postal Convention. The agreement also lays down that no provision of the Universal Postal Convention or its connected agreements may be invoked as forming an obstacle to or making any limitations whatever in the observance by a Government of its obligations towards the United Nations. Secondly, a change was made in the membership clause of the Postal Union. Hitherto, under the Convention, membership of the Union has been open to all Sovereign States merely by announcing their adhesion to the Union. The amendment .adopted at Paris provides that any country may ask to be allowed to adhere to the -Convention at any time, but admission as a member is subject to the approval of at least two-thirds of the countries comprising the Union. Thirdly, an Executive Commission (or Administrative Council) of the Union, consisting of nineteen member countries, was established with certain powers to deal with questions that arise between Congresses, which are normally held every five years. Hitherto such questions have had either to await the assembling of the five-yearly Congresses or be decided by post. Intermediate countries which handle the mails of one country in transit to a third .are entitled to payment for the internal transport service rendered. The rates paid, known as " transit rates," are fixed by the Convention. At the Paris Congress a Transit Rates Committee was established (a) to examine the general question of transit rates with a view to determining an equitable basis for fixing those rates, and (b) to suggest methods for simplifying their calculation. The Committee is required to submit its report to the Postal Union before the next Congress meets.

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Other changes that were introduced were an increase in the maximum weight for overseas printed papers, a reduction from 50 gold francs (approximately £S(N.Z.)) to--25 gold francs as the maximum compensation paid for the loss of a registered article,., and the fixing of a maximum conveyance rate of 6 gold francs per tonne/kilometre for mails forwarded on extraordinary (long-distance international) air services and 3 gold francs per tonne/kilometre for ordinary (short-distance international and internal) air services. The changes adopted at the Paris Congress take effect from the Ist July, 1948. New Zealand was represented at the Congress by Mr. P. N. Cryer, Director-General,, and Mr. P. F. Stevens, Senior Supervisor, Postal Division, General Post Office. TELEGRAPH SERVICES VOLUME OF TRAFFIC During the year 7,609,416 telegrams were lodged for transmission compared with 7,908,271, a decrease of 298,855 or 3-77 per cent., on the number handled the previous year. Telegraph revenue was £665,642, a decrease of £3,868, or 0-57 per cent., on that for the previous year. The slight decrease in telegraph traffic is not unexpected, and is due to the loss of wartime business, especially telegrams sent at the soldiers' concession rate, which was abolished as from the Ist April, 1947. Telegraphic business is, however, still at a very high level. Compared with the pre-war year of 1938, the foregoing figures represent an increase in volume of nearly 40' per cent, and in revenue of approximately 100 per cent. MACHINE-PRINTING TELEGRAPHS New Installations In continuation of the policy of the Department to extend the use of machineprinting apparatus wherever warranted, a teleprinter circuit was brought into use between Auckland and Whakatane on the 16th December. Teleprinter equipment was installed also at Wellington South on the 11th September. There are now thirty-five post offices in New Zealand equipped with machine-printing telegraph apparatus. YOICE-FREQUENCY TELEGRAPH NETWORK Additional Installations During the year multi-channel voice-frequency telegraph systems were installed between the following places : Channels. Auckland-Wellington .. .. .. .. 12 Whangarei-Auckland .. ~ .. ... 12 Napier-Wellington .. .. .. ~ 12 Wellington-Wanganui .. .. .. .. .. 6 Wellington - New Plymouth .. .. .. 6 The installation of these channels has resulted in an improvement in -the stability of telegraph circuits and a reduction in the time lost due to line-faults.

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SPECIAL TELEGRAPH FACILITIES PROVIDED DURING TOUR OF SOUTH AFRICAN ASSOCIATION FOOTBALL TEAM To provide for the prompt handling of overseas press traffic relating to the matches played by the South African soccer football team which toured New Zealand during the year, machine-printing facilities were provided at a number of the football-grounds for direct communication with the overseas cable terminal at Auckland. INTERNATIONAL TELECOMMUNICATIONS CONFERENCES, ATLANTIC CITY, U.S.A., 1947 Several international telecommunications conferences were held in Atlantic City, United States of America, extending from May until October. The conferences, which were attended by delegates from seventy-nine countries, dealt with the following matters : (1) Revision of the International Telecommunication Convention of Madrid, 1932. (2) Revision of the Radio-communication Regulations of Cairo, 1938. (3) International High-frequency Broadcasting. Conference on International Telecommunication Convention A new International Telecommunication Convention was drawn up by the Conference of Plenipotentiaries, the following being the more important changes made to the Convention of 1932 : (1) An Article has been provided covering membership and voting ; there was no appropriate provision for this in the 1932 Convention. Full membership with voting rights is retained for those countries or groups of countries which at present form the International Telecommunication Union. Countries now joining the United Nations will be granted membership without ballot, while others which are Sovereign States, upon approval by two-thirds of the Members of the Union. Associate membership is granted to any country, territory, or group of countries upon the approval of a majority of the members of the Union. Associate members have not the right to vote in any conference. (2) The International Telecommunication Union was brought into relationship with the United Nations as a " Specialized Agency " in accordance with Article 57 of the Charter of the United Nations. The agreement giving effect to the relationship provides for reciprocal representation and for co-operation with the United Nations and its principal and subsidiary organs. It also provides for assistance to be given in accordance with the Charter of the United Nations and the International Telecommunication Convention, taking fully into account the particular position of the individual members of the Union who are not members of the United Nations. (3) An Administrative Council consisting of representatives of eighteen member countries was established to function between conferences and to deal with various matters arising from time to time. Previously such matters had either to await the calling together of a conference or be decided by post. (4) In order to provide for an improved method of dealing with the assignment and registration of radio frequencies due to the great increase in the use of the radio-frequency spectrum, an International Frequency Registration 1 ' Board comprised of eleven members, with headquarters at Geneva, was established.

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Among other changes introduced were the functioning of the three International Consultative Committees on a continuous basis ; the publishing of final acts, regulations, and official publications of the Union in the official languages of the United Nations (viz., English, Chinese, French, Russian, and Spanish); the location of all permanent organs of the Union at Geneva, Switzerland; the requirement that the administrative regulations (radio, telegraph, and telephone) are automatically binding on countries signing the Convention, unless by a protocol to the Convention a country specifically stipulates that a particular set of regulations will not apply to its territory ; and the provision that in future plenipotentiary and administrative conferences of the Union will be held regularly at five-yearly intervals at the same place and, as far as possible, at the same time, instead of at irregular periods as in the past. The new Convention will come into effect on the Ist January, 1949. Conference on International Radio-communication Regulations The conference dealing with radio matters revised the International Radiocommunication Regulations of Cairo, 1938. A major task performed was the drawingup of a new world radio-frequency allocation table, apportioning the radio-frequency spectrum between all types of radio services on a rationalized basis. In the revision of the regulations a large number of changes involving technical considerations were made. In general, these changes were made with the object of improving world radio communications by the elimination of interference. In the operational section of the Radio Regulations some changes have been made which will require a modification of the radio equipment installed on ships registered in New Zealand. The more important of these, apart from certain necessary changes in operating frequencies, are that the use of type B (spark) emissions is prohibited except for distress or safety purposes ; and that the provision of crystal control of high-frequency transmitters is essential. The regulations made at the Atlantic City Radio Conference come into effect on the Ist January, 1949, except for the table of frequencies and certain other regulations relating to frequency assignments, which will not become operative until a later date yet to be fixed by a further special administrative conference of the Union. Conference on High-frequency Broadcasting The conference on high-frequency broadcasting devoted itself primarily to the formulation of engineering principles which would underlie a frequency plan for highfrequency broadcasting and to the preparation of an agenda for a further conference to be held in Mexico City towards the end of 1948. New Zealand was represented at the foregoing conferences by Mr. H. W. Curtis, Divisional Director (Telecommunications), and Mr. T. R. Clarkson, Divisional Radio Engineer, General Post Office, who attended also an international meeting on marine radio aids. In the conference concerned with the revision of the Radio Regulations the delegation included also Messrs. L. J. Elliston, Senior Supervisor, Radio Division, and S. T. A. Emmett, Radio Engineer, General Post Office.

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NATIONALIZATION OF THE TELECOMMUNICATIONS SYSTEMS OF THE COMMONWEALTH AND EMPIRE Reference was made in my last report to the conference of representatives of the British Commonwealth and Empire which was held in London in 1945, and as the result of which certain recommendations as to the nationalization of the telecommunications systems of the Commonwealth were accepted by all the Commonwealth Governments. So far as New Zealand is concerned, the New Zealand assets of Cable and Wireless, Ltd., have been purchased by the Post and Telegraph Department at a cost of £43,372. As an interim measure, the Post Office assumed the management of the company's activities in this country on the Ist January. This interim arrangement will continue until legislation is brought down in the United Kingdom—probably in 1949—t0 provide for the consummation of the scheme envisaged in 1945. Pending final arrangements, the staff at the Auckland cable-station has been seconded to my Department by the company. SPECIAL CABLE CIRCUIT FROM WELLINGTON TO OVERSEAS POINTS The assumption by the Post Office of the management in New Zealand of the activities of Cable and Wireless, Ltd., has enabled cablegrams lodged at Wellington and surrounding districts to be transmitted directly into the Auckland cable-station and thence overseas by means of automatic reperforation at Auckland. Hitherto, messages had been transmitted to the Auckland Chief Post-office, where they were handed over to Cable and Wireless, Ltd., for retransmission. The new circuit, which entailed the installation of special equipment at Wellington and Auckland, was brought into operation on the 23rd February. On a word basis, about one-half of the total cable traffic forwarded from New Zealand is disposed of on the new circuit, resulting in a valuable saving in transmission time. Equipment which will permit of cable traffic addressed to Wellington and district being received at Wellington direct from overseas through reperforating-apparatus. at Auckland is on order from overseas and will be brought into operation as soon as it arrives. POST OFFICE REVENUE FROM CABLEGRAMS From the Ist January, 1947, the revenue accruing to the Post Office for the acceptance, transmission, and delivery of cablegrams within New Zealand was increased as follows : cablegrams exchanged with Australia, from |d. per word to Id. per word ; with other countries of the Commonwealth and foreign countries (except the United States of America, Netherlands East Indies, and the Netherlands), from Id. to l^d.; and with the United States, Netherlands East Indies, and the Netherlands, from Id. to lfd. It is estimated that the Post Office revenue from cablegrams will benefit to the extent of about £17,000 per annum as a result of these increases. The rates charged to the public were not affected by the foregoing adjustments' RADIO-TELEGRAPH CIRCUITS WITH THE UNITED STATES Following upon the Bermuda Telecommunications Agreement (1945), which provided, inter alia, that only one of the two radio-telegraph circuits between New Zealand and the United States of America was to be retained, the circuit operated in the United States by the Mackay Radio and Telegraph Co. and in New Zealand by the Post Office was closed on the 10th January. All radio-telegraph communication with the United States is now concentrated on the circuit operated by R.C.A. Communications, Inc.

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TELEPHONE-EXCHANGE SERVICES NUMBER OF SUBSCRIBERS During the year the number of telephone subscribers increased from 209,505 to 222,504, or 6-2 per cent., compared with the previous year's increase of 6-7 per cent. (See also Table No. 6 in Appendix.) TELEPHONE DEVELOPMENT The shortage of telephone equipment and congestion in telephone cables are still factors limiting the number of new subscribers that can be given service. This applies particularly at the four main centres and some of the larger towns, but there is also a number of small towns where the underground cable system requires to be extended before any further lines can be joined to the exchange switchboard. The slow delivery of poles, both from New Zealand and overseas sources, has also been a factor contributing to delay in furnishing telephone service. It was only by extensive improvising and by adding more connections to existing lines where this was practicable that a net increase of 12,999 new connections for the year was achieved. There is a limit to what can be done by improvising, however, and the connection of new subscribers in any number in future is dependent upon the completion of large-scale cabling and line construction works, the installation of extension equipment in existing exchanges, and the establishment of entirely new exchanges in city and rural areas. The provision of telephone service in rural areas consumes very large quantities of poles and wire and involves many thousands of hours in labour. As both material and labour have been in short supply for some years, the extension of telephone service in. country districts has been seriously retarded. As the supply position becomes easier, a special effort will be made to make up the leeway in country areas, particularly in areas that are at present poorly or sparsely telephoned. To this end plans are being formulated for the erection of new rural telephone lines throughout New Zealand and also for the opening of many new exchanges. A small automatic exchange has been specially developed overseas for use in country areas. Orders have been placed in the United Kingdom for a supply of these equipments, and a small number has already been received. Ultimately, it is proposed to install rural automatic systems in all country districts where new exchanges are required, but owing to the delay in supply some of the exchanges will need to be established on a manual basis at the outset and converted to automatic working later. Of the 41,292 applications on hand for telephone connections, 29,136 are in respect of service at automatic exchanges, the remainder (12,156) being applications for service at manual exchanges and in country areas where no exchanges exist at present. The time within which the waiting-lists can be liquidated is dependent upon the availability of labour and the supply of equipment and materials on order. The Post Office is making strenuous efforts to overcome the lag in supply. In terms of the New Zealand Telephone Equipment Supply Agreement (1946-50), whereby the Department is to obtain from British manufacturers the major part of its future requirements, large orders have been placed for such items as manual telephones (46,200), automatic telephones (111,700), private branch exchange equipment (13,300 lines), manual exchange equipment (29,000 lines), and automatic exchange equipment (20,230 lines).

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New and Pending Installations The following schedule indicates the new equipment recently installed and that at present under installation to provide relief at the larger automatic exchanges :

Plans for Further Relief at Existing Exchanges

New Exchanges established A new manual exchange with 216 subscribers was opened on the 19th January, 1948, at Brown's Bay, in the Waitemata County. A new rural automatic exchange with 114 subscribers was opened on the 18th February at Ngatimoti, in the Waimea County. Continuous service for both local calls and toll calls is provided at both exchanges.

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Place. Capacity of Equipment provided during Year. Capacity of Equipment under Installation. Expected Date of Completion. Subscribers. Subscribers. Auckland: — *Ponsonby 900 June, 1948. *Tamaki 120 July, 1948. *Three Kings 900 June, 1948. Ohristchurch— *Central exchange 900 Dunedin— ' Anderson's Bay 740 Green Island 380 * North-east Valley 560 Roslyn 400 South Dunedin 440 July, 1948. Wellington— Johnsonville .. 600 *Karori 415 Khandallah 400 y Lower Hutt 5,000 May, 1949. ♦Other TownsBlenheim 200 Dannevirke 300 June, 1948. Gisborne 400 July, 1948. *Hamilton 900 Hawera 300 July, 1948. Marton 100 April, 1948. Oamaru 200 *Palmerston North 900 "This equipment is of a temporary nature and will be converted to automatic working when the necessary apparatus is received from overseas. fNew exchange replacing existing exchange.

Place. Proposals. Expected Date of Completion. Ellerslie, Auckland Kiccarton, Christchurch Kilbirnie, Wellington .. Naenae, Lower Hutt Hamilton East Palmerston North Temporary manual exchange to serve 675 subscribers Temporary manual exchange to serve 900 subscribers Temporary manual exchange to serve 675 subscribers Temporary manual exchange to serve 675 subscribers Temporary manual exchange to serve 675 subscribers Capacity of existing manual exchange to be increased from 900 subscribers to 1,400 subscribers June, 1949. December, 1948. May, 1949. May, 1949. November, 1948. October, 1948.

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Rural Automatic Exchanges Initial supplies of small automatic exchanges for use in rural areas are now being received. These exchanges will provide a twenty-four-hour service and cater for a large number of subscribers on a party-line basis. Subscribers to these exchanges will have access to " parent " exchanges for purposes of making toll calls. The following is a list of places at which it is proposed to install rural automatic exchange units : Place. County. Place. County. Ahaura .. .. Grey. Ngahere .. .. Grey. Awhitu .. .. Franklin. Ohai .. .. Wallace. Beck's .. .. Maniototo. Oparau .. .. Kawhia. Donnelly's Crossing .. Hobson. Panetapu .. .. Otorohanga. Glen Murray .. Eaglan. Rotomanu .. .. Grey. Harihari .. .. Westland. South Hillend .. Southland. Hunua .. .. Franklin. Te Pahu .. .. Raglan. Ikamatua .. .. Inangahua. Wataroa .. .. Westland. Murupara .. .. Whakatane. Whangamata .. Thames. Moana .. .. Grey. Whitianga .. .. Coromandel. As only a limited number of rural automatic exchanges are available at present, some of the proposed exchanges may be established on a manual basis as a temporary measure, but they will be converted to automatic working when the equipment arrives in New Zealand. In addition to the above proposals it is also the intention to open automatic exchanges at many other localities in country areas, and to that end a survey is being conducted on a New-Zealand-wide basis to determine the places at which new exchanges are required. A programme of converting existing manually-operated exchanges to automatic operation will also be undertaken progressively in order to implement Government's policy of providing a twenty-four-hour telephone service throughout country areas. Proposed New Manual Exchanges Plans are being made for the establishment of manual telephone exchanges at Mangakino, in the Taupo County; Otira, in the Westland County ; and Tokoroa, in the Matamata County. Extension of Manual Exchanges To meet the demand for telephone service at manually operated exchanges, extra switchboard accommodation has been provided at fifty-nine such exchanges. TOLLS Increased Traffic During the year, 23,872,673 toll calls were dealt with, compared with 22,696,474 for the previous year, an increase of 5*2 per cent. (See also Table No. 7in Appendix.) Carrier-telephone Systems on Toll Routes Eight three-channel and twenty single-channel carrier-telephone systems were installed during the year on various toll routes throughout New Zealand. The total of forty-four additional long-distance circuits made available as a result of these installations has resulted in a marked improvement in toll service in both the grade of transmission and the speed of service. Pending some major alterations involving the complete rebuilding of the lines along the arterial toll routes or the substitution of aerial

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lines by specially designed underground cables, only limited expansion of the number of speech, channels between the larger centres is possible in the immediate future. Plans covering future requirements for the full development of toll services are in hand. As with telephone service, much leeway lost during the war years has yet to be overtaken. Radio-telephone Toll Channels The three radio-telephone channels between Wellington and Eastbourne, referred to in last year's report, were brought into operation during May, 1947, to augment the existing land-line circuits, thus giving an improved service between the two places. The majority of the toll calls exchanged between Wellington and Eastbourne are now completed while the caller waits on the line. Radio-telephone Link At the request of the Lands' and Survey Department, a radio-telephone link has been provided between the mainland and Kapiti Island. The mainland terminal is at Paraparaumu and is a Post Office asset, while the terminal equipment on the island is the property of the Lands and Survey Department. In addition to terminal-to-terminal communication, the radio channel can be connected to the telephone exchange and toll system. Toll Equipment To meet the growth in toll work, additional toll-operating positions have been provided at Auckland (fourteen positions), Christchurch (eight positions), Oamaru (a new switchboard of four positions), and Wellington (fourteen positions). In addition, an eight-position toll extension at Hamilton is in course of installation and will be available by August, 1948. PUBLIC CALL OFFICES At the 31st March there were 1,514 public call offices (coin-in-the-slot) telephones installed in New Zealand. The total collections for the year amounted to £107,895. (See also Table Nq. 6 in Appendix.) RADIO SERVICES OVERSEAS TELEPHONE SERVICE The radio-telephone services to Australia, the United Kingdom, and the United States, and through these places to certain other countries, continue to be well patronized. The total number of calls handled during the year was 9,673, as compared with 8,164 calls handled during the previous twelve months. New Zealand's share of the revenue was £9,447. On the Ist February, 1948, the radio-telephone service was extended through the United Kingdom to Switzerland. Transmitting-station for Overseas Radio Services For some time past area limitations at the overseas radio-telephone transmittingstation at Wellington Radio on Mount Wakefield have militated against the provision of adequate transmitting aerial arrays. To meet the position and to ensure the provision of a high-grade direct service with the United Kingdom, it has been decided to establish a modern high-power transmitting-station specially designed to cater for radio services beyond New Zealand. For this purpose an area of flat land of approximately 2—F 1

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800 acres situated on the Main North Road at Himatangi, near Foxton, has been Preparatory work in the planning of buildings, procurement of equipment, &c., is proceeding. The work, is of considerable magnitude, however, and it is expected that up to three years may elapse before the new station will be ready for service. During the year, radio propagation tests have been continued between New Zealand and the United Kingdom, and from these tests important information is being obtained .to enable the engineering of a reliable service. For the Makara receiving-station, improved facilities will be required for reception from the United Kingdom, and the provision of the necessary antenna system is being investigated. PHOTO-TELEGRAM SERVICES Photo-telegram services were opened with the United Kingdom and with Australia on the 20th November, the first official pictures received being of the wedding of Princess Elizabeth and the Duke of Edinburgh. Arrangements are now being made to open a radio photo-telegram service with the United States of America. TELEPRINTER OPERATION OYER RADIO CHANNELS During the year, tests have been conducted to determine the practicability of operating machine-printing telegraph equipment over radio circuits. The tests, which were very satisfactory, indicate the practicability of employing equipment of this type on any radio channels, including the overseas radio-telegraph services. RADIO-TELEPHONE SERVICE FOR MOBILE VEHICLES Preparatory work is almost complete for the early provision at Auckland and Wellington of fixed post-office radio stations for the land mobile radio-telephone services. It is anticipated that similar services will be brought into operation at Christchurch and Dunedin later in the year. Initially' the service in these centres will cater only for public utility bodies (fire .brigades, ambulances, &c>), but the scheme'will be progressively expanded to cater for private organizations. The service will provide, on a rental basis, communication by radio between the premises of mobile radio subscribers and vehicles equipped and operated by them. The Post Office will own and maintain all equipment at. the fixed transmitting-stations and at the subscribers' premises, but that in the vehicles will be provided and maintained by the subscribers. Speech from the subscriber's premises will be conveyed by land line to the fixed radio station, whence it will be transmitted to the vehicles. Conversely, speech from the vehicles will be received at the fixed radio station and relayed by land line to the subscriber's premises. A demand exists for mobile services at the four centres mentioned, and arrangements are now in hand to provide for requirements at those places. Only a few inquiries have as yet been made for the establishment of mobile radio stations in other areas. The Department is prepared to consider favourably the installation of further fixed stations as and when sufficient applications are received from organizations representing publicly and privately owned utilities at provincial centres. iln the light of overseas experience, it is certain that the very-high-frequency mobile radio scheme will offer wide scope for the improvement of public and private utility services- throughout the country. 1 Considerable . interest has been displayed by overseas administrations in the inauguration of. the New Zealand scheme, and requests for information have been received from the.British. and Australian Post Office Departments.

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AERADIO SERVICES The aeradio services established at Awarua Radio in November, 1944, following upon the institution of air services between Dunedin and Invercargill, were discontinued as from the 17th November, 1947. The necessary radio-communication facilities for aircraft in that area are now provided at Invercargill by the Air Department. OPENING OF RADIO-TELEGRAPH STATIONS AT ISLANDS OFF MAINLAND During the year, radio-telegraph stations were opened at Mayor Island and Slipper Island for communication with the mainland. RADIO INTERFERENCE REGULATIONS 1934 By amending regulations effective from the Ist February, the scope of the Radio Interference ' Regulations 1934 was widened to cover the licensing of high-frequency equipment which is liable to cause interference to broadcast reception .and to radiocommunication. services. LICENCES ISSUED Radio-receiving Licences At the 31st March the total number of radio-receiving licences current was 421,064, representing an increase of 5,783, or 1 *4 per cent, over the number in force a year earlier. Radio-dealers' Licences Radio-dealers' licences in force at the 31st March numbered 1,680, an increase of 195 as compared with the number current at the end of the previous year. Private Experimental (Amateur) Stations The number of private experimental (amateur) stations licensed at the 31st March was 1,617, an increase of 357 over the previous year. Private Commercial Radio-telephone Stations Radio-station licences have been issued to associations representing owners of small marine craft such as fishing and pleasure launches to establish land stations for communication with their vessels. Generally such stations are approved only in areas • outside the range of Post Office stations. Radio-telephone Stations on board Ships During the year 78 small vessels such as launches, yachts, and fishing-trawlers were licensed for radio-telephone communication with private shore stations or with stations operated by the Post Office. The total number of ships fitted with radiocommunication equipment and licensed in New Zealand is 160. MONEY-ORDER AND SAVINGS-BANK SERVICES SAVINGS-BANK FACILITIES Establishment of Ledger Offices The policy of extending ledger facilities was pursued during the year, an additional 35 Savings-bank ledger offices being opened. There are now 105 ledger offices at. which depositors may make withdrawals on demand, and these offices cover about 95 per cent. «©f all depositors.

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Machine Accounting The introduction of accounting-machines for posting the ledgers at most of the principal Savings-bank offices was a notable achievement during the year. Except for Auckland, Wellington, and Christchurch, the work has been completed. Although the work of converting the manual ledgers to the mechanized system was a heavy task, it was accomplished successfully and without inconvenience to depositors. The machines will facilitate the accounting work in the Savings-bank and will enable a reduction to be effected in overtime payments. Deposits, Withdrawals, and Interest Deposits lodged in the Post Office Savings-bank during the year amounted to £72,553,414, and withdrawals to £68,660,458, an excess of deposits over withdrawals of £3,892,956. The amount at the credit of depositors at the close of the year was £148,442,304, the interest accruing to depositors being £3,307,081. (See also Tables Nos. 8 and 9 in Appendix.) MONEY-ORDERS, POSTAL NOTES, AND BRITISH POSTAL ORDERS In the following table the number and value of money-orders issued, postal notes sold, and British postal orders sold and paid during the year is shown : Number. Value. £ Money-orders .. .. .. 917,290 10,804,314 Postal notes .. .. .. 2,464,783 1,071,613 British postal orders sold .. .. 32,816 11,593 British postal orders paid .. .. 38,557 29,757 MISCELLANEOUS BUILDINGS AND LAND The Department's main building operations, in common with those of other interests throughout New Zealand, continue to be severely restricted by the shortage of materials and labour, and consequently little headway is being made with the major items on the extensive departmental building programme. The only sizeable structure in permanent materials completed during the year was the Karori automatic-exchange building, while the large permanent buildings under construction at the end of the year were only three in number—namely, the Balclutha, Feilding, and Te Kuiti Post-offices. The Te Kuiti Post-office is nearing completion, but the Feilding and Balclutha buildings are not expected to be ready until some time in 1949. Although progress on buildings in permanent materials was unavoidably disappointing, very satisfactory progress was made with jobs that were not affected by the shortage of such vital materials as cement and steel. In addition to carrying out routine maintenance on a good proportion of the large number of departmentally owned buildings, the Department was able, mainly by utilizing surplus Defence buildings, to provide urgently needed improved accommodation for post-office and other departmental purposes, as well as a great deal of temporary living-accommodation for officers. Additions and alterations were made to thirteen post-offices, while seven new post-offices were constructed entirely from ex-Service buildings. Three workshops and line depot buildings were provided in the same manner. At the close of the year fourteen jobs of a like nature were under wav.

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But the greatest progress was made in the field of relieving the accommodation difficulties of officers. One hundred and eighty-three transit flats for married officers were completed, the units being located in all parts of the country. For single officers, .two large hostels were provided at Wellington and one at Auckland, while at seven country places where lodgings were not obtainable bachelor accommodation for varying numbers of officers was also provided. The provision in this way of extra livingaccommodation to meet the most urgent cases is having the further effect of assisting the Department to overcome staffing problems where they are most acute. It is worthy of record that practically all the work associated with the adaptation of these second-hand buildings, as well as the alterations and additions to post-offices and other departmental buildings, has been arranged and supervised by the Department's own staffs ; while in a limited number of cases the actual construction work as well has been carried out by the Department's own workmen. This use of the Department's own resources has materially reduced the amount of work which otherwise would have been placed upon the heavily laden Public Works organization. Satisfactory progress was made by the Housing Division of ,the Public Works Department in respect of houses for postmasters. Ten residences for postmasters were completed during the year and thirteen were under construction at the end of the year. In detail, the Department's building and land transactions during the year were as follow : The following new buildings were completed during the year : a carrier building at Culverden; automatic-telephone-exchange buildings at Green Island and Karori; temporary telephone-exchange buildings at Ponsonby, Rotorua, and Whakatane ; rural automatic-telephone-exchange buildings at Ngatimoti and Oparau ; residences at Inglewood, Masterton, Otaki, Paraparaumu, Point Chevalier, Taneatua, Thames, Tikitiki, Tirau, and Waikouaiti. Additions were made to the post-office buildings at Brown's Bay, Riverton, Seddon, Takaka, and Wyndham; also to the receiving-station building at Awarua Radio. Alterations were made to the post-office buildings at Addington (including removal of tower), Leeston, Outram, Paraparaumu, Upper Moutere, and Waikaia. Surplus Defence buildings were used for departmental purposes as follow : additional post-office accommodation at Waiuku and Whakatane ; post-offices at Blockhouse Bay, Parakao, Ruatoki North, Surfdale, and Titirangi; post-offices and quarters at Buckland's Beach and Rai Yalley; additional store and workshops accommodation at New Plymouth ; a temporary line depot at Palmerston North ; additional workshops accommodation at Masterton ; a staff lunch-room at Hawera ; and a staff retiringroom at Te Awamutu. Surplus Defence buildings were converted into transit flats for departmental employees as follows : Auckland (Bayswater, 15 ; and Onehunga, 14), Balclutha (1), Blenheim, (3), Bulls (3), Christchurch (3), Dunedin (Ocean Beach, 1; and Central Battery Camp, 10), Gisborne (6), Gore (2), Hastings (9), Hawera (4), Invercargill (2), Kaitaia (2), Morrinsville (3), Nelson (3 additional), Paeroa (2), Palmerston North (2), Putaruru (3), Ranfurly (1), Rangiora (2), Thames (3), Timaru (6), Wanganui (7), Wellington (Karori, 4; Northland, 6; Rongotai, 3; and Trentham, 50), Westport (1), and Whangarei (4). Departmental premises were converted as follow: to provide transit flats at Cromwell (1), Dargaville (1), Kaikohe (2), Kawakawa (1), Taihape (2), and Wellsford (1) ; and to provide bachelor accommodation at Henderson (three-man), Morrinsville (twoman), and Tikitiki (two-man); and also to provide a residence at Seddon. 3—F 1

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Surplus defence buildings were also adapted to provide hostel accommodation for departmental officers as follows : Auckland (capacity 56), Trentham (capacity 276), and Johnsonville (capacity 116). Bachelor accommodation was also provided from surplus buildings at Clydevale (three-man), Paparoa (four-man), Putaruru (seven-man), and Ruatoria (four-man). The old post-office buildings at Balclutha and South Dunedin were demolished. A building in Wellington (Whitmore Street) formerly owned by the United States Joint Purchasing Board and leased by the Department for parcels-post purposes was acquired during the year. Land was acquired at Alexandra (for. line depot), Balmoral (for post-office), Blenheim (for transit housing), Caversham (for residence), Dargaville (for residence), Gisborne (for transit housing), Green Lane (for post-office), Huntly (for residence), Johnsonville (for hostel), Moray Place (for extension of post-office site), Mount Maunganui (for residence), Nelson (for transit housing), Ngaio (for post-office), Ngatimoti (for rural automatic-telephone exchange), North New Brighton (for post-office), Ohakune Junction (for residence), Omakau (for transit housing), Onehunga (for residence), Opunake (for residence), Otira (for post-office and carrier building), Paeroa (for transit housing), Papanui (for automatic-telephone exchange), Paraparaumu Beach (for residence), Remuera (for residence), Rotowaro (for post-office), South Dunedin (for residence), Stokes Yalley (for post-office), Taihape (for residence), Tawa Flat (for post-office and residence), Three Kings (for automatic-telephone exchange), Waipukurau (for extension of post-office site), Whangarei (for residence), and Whangarei North (for post-office). The post-office building at Burnham Military Camp, the old post-office and site at Rai Yalley, the postmaster's old residence and site at Stratford, the old post-office site at Wanaka, the old post-office building at Tokoroa, and the lineman's residence at Waverley were disposed of during the year. Land at the following places was also disposed of: Kaikoura (portion of residence site to Education Board for extension of school site), Paraparaumu Beach (postmaster's residence site exchanged for Police Department site), Pihama (redundant post-office site), Rakaia (redundant portion of postmaster's residence site), Tauranga (portion of Do&t-office and line-store - garage sites for street-widening), Wellington (redundant post-office site, Tinakori Road), and White's Bay (cable-hut site). At the end of the year the following works were in progress : Ashburton (additional post-office accommodation), Auckland (Newmarket, alterations to workshops), Auckland East (erection of residence), Auckland West (erection of residence), Balclutha (erection of post-office building), Carterton (erection of residence), Christchurch (erection of temporary carpenters' and body-building workshop), Dunedin (additional workshops accommodation), Feilding (erection of post-office building), Forbury (erection of residence), Gisborne (additional garage and workshops accommodation), Glen Eden (erection of residence), Glen Murray (erection of rural automatic-telephone-exchange building), Hastings (additional line depot accommodation), Karori (erection of residence), Lower Hutt (alterations to post-office building), Manners Street (Wellington) (providing post-office accommodation in existing building), Mauriceville (erection of post-office building), Northcote (erection of residence), Opunake (erection of temporary telephoneexchange building), St. Albans (erection of residence), Sydenham (erection of residence), Silverdale (additions to post-office building), Tamaki (erection of temporary telephoneexchange building), Taihape (erection of line-store and garage building), Te Aroha (erection of residence), Te Kuiti (erection of post-office building), Te Papapa (erection of residence), Three Kings (erection of temporary telephone-exchange building), Waipukurau (erection of telephone-exchange building), Wakefield (alterations to postoffice building), and Whitianga (erection of residence).

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STORES The value of stores and equipment ordered during the year was as follows, the figures for the previous year being given for comparative purposes : 1946-47. 1947-48. .£ £ For Post and Telegraph Department— From suppliers in New Zealand .. 784,340 943,039 Ordered for supply from overseas .. 1,643,645 2,469,697 For other Departments — From suppliers in New Zealand .. 224,658 519,578 Ordered for supply from overseas .. 48,652 119,956 The above amounts represent actual or estimated costs, including freight, customs duty, and sales tax where applicable. The value of the stocks, including stores on-cost, held in the Auckland, Christchurch, Dunedin, and Wellington storekeeping districts at the end of the year, as compared with that of the stocks held on the 31st March, 1947, was as follows : 31st March, 31st March, District. 1947. 1948. £ £ Auckland .. .. .. .. 422,014 482,113 Christchurch .. .. .. .. 186,860 236,520 Dunedin .. .. .. .. 109,165 188,706 Wellington .. .. .. .. 1,868,179 1,747,063 £2,586,218 2,654,402 DEPARTMENTAL MOTOR-VEHICLES Of the new motor-vehicles placed in service during the year, 58 were cars and 35 commercial vehicles. The fleet now totals 1,247, comprising 380 cars and 867 trucks and vans. Of the total mentioned, 354 vehicles were obtained second-hand ex-Army, while the larger proportion of the remainder were purchased prior to the commencement of the war. It is expected that a supply of new vehicles likely to be obtained early in the new year will enable the Department to withdraw from service a number of vehicles that have passed their useful period of service and are proving costly in maintenance. The total distance travelled by departmental vehicles during the year was 9,792,712 miles. WORKSHOPS The value of work performed in the various departmental workshops during the year was £516,366. Of this amount, £99,033 represents the value of services rendered to other Government Departments. WORK PERFORMED FOR OTHER DEPARTMENTS Value A total of approximately £200,000,000 was handled by the Post Office on behalf of other Departments during the year.

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NATIONAL SAYINGS Investments in national savings through Post Office channels during the year amounted to £6,280,060, compared with £5,193,753 for the previous year. In addition, £492,697 was received from the sale of national savings bonds. National savings gift coupons to the value of £629 were sold during the year. Sales of national savings stamps amounted to £1,775. New accounts were opened as follow : Opened with the Post Office .. .. 21,548 (including 13,102 group depositors*). Opened with trustee savings-banks .. 1,123 (including 238 group depositors). 22,671 *4OB new groups were established during the year. (Tables showing (a) the extent of deposits to and withdrawals from national savings accounts for the years 1947 and 1948, and (6) the value of national savings bonds issued and redeemed, appear in the Appendix, Tables Nos. 10 and 11.) REGISTRATION OF MOTOR-VEHICLES AND ASSOCIATED WORK At the 31st March, 1948, licensed motor-vehicles in New Zealand numbered 359,457. New registrations during the year totalled 39,421. Motor-registration fees collected amounted to £668,607 2s. 4d. The premiums collected on behalf of the thirty-seven insurance companies authorized to underwrite business in terms of the Motor-vehicles Insurance (Third-party Risks) Act, 1928, totalled £435,095 18s. Id. Mileage tax amounting to £33,576 13s. 4d. was collected in respect of 803 vehicles.

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APPENDIX FINANCIAL Table No. 1. — Statement op Receipts and Payments (Post Office Account) for the Year ended 31st March, 1948 Receipts Payments £ £ £ Postages .. .. .. 3,059,371 Salaries .. .. .. 3,616,262 Money-order and postal-note com- Conveyance of mails — mission .. .. .. 77,962 Overseas— Private box and bag rents and rural Air .. .. 168,802 delivery fees .. .. .. 80,252 Surface .. .. 203,944 Telegrams .. .. .. 665,642 372,746 Tolls .. .. .. .. 1,722,584 Inland — Telephone-exchange rentals .. 2,118,169 Air .. .. 34,417 Miscellaneous receipts .. .. 1,250,468 Ship .. .. 17,211 Rail .. .. 212,674 Road .. .. 211,423 475,725 Maintenance and renewal of telecommunication system .. .. 900,070 Motor services and workshops .. .. 359,612 Post-office buildings .. 547,723 Miscellaneous .. .. 1,926,132 Interest on capitalliability 746,316 Sick Benefit Fund .. 11,730 4,491.583 Excess of receipts over payments 18,132 £8,974,448 £8,974,448 Table No. 2. —Statement of Payments on account of Telegraph Extension for the Year ended 31st March, 1918 £ Materials .. .. .. 547,469 Freight .. .. .. 81,341 Travelling .. .. .. 1,524 Camp allowances .. .. 4,974 Labour .. .. .. 370,532 £1,005,840

POSTAL SERVICES Table No. 3. —Postings

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Number posted. Year ended 31st March, Letters, Letter-cards, Post-caxds. Accounts, Packets, Newspapers. i Parcels. Total Articles posted. ! 1947 1948 | ! | 160,680,000 j 159,778,000 1 1 126,044,000 133,555,000 : i 7,602,000 1 7,734,000 294,326,000 301,067,000

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TELEGRAPH SERVICES Table No. 4. —Telegrams and Cablegrams

Table No. 5.—Radio Telegrams

TELEPHONE SERVICES Table No. 6.—Number of Telephones, and Revenue.

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Inland Telegrams. Cablegrams. Year ended 31st March, Ordinary. Press. Forwarded. Received. Number. Revenue. Number. Revenue. Number. Revenue (New Zealand Portion). Number. Revenue (New Zealand Portion.) 1947.. 1948.. 7,109,613 6,738,644 £ 495,463 475,494 409,693 456,783 £ 90,197 96,002 361,253 387,272 £ 17,934 28,553 324,699 360,909 £ 16,895 26,963

Year ended 31st March, Forwarded. Received. Number. Revenue (New Zealand Portion). Number. Revenue (New Zealand Portion). | 1947 1948 27,712 26,717 £ 10,742 10,020 60,860 65,797 £ 28,050 19,163

Year ended 31st March, Subscribers' Main Stations («)• Service Main Stations (6). Extension Stations, all Classes (c). Public CaU Offices (d). .Revenue from (a), (c), and (<Z). Privately Owned Phones connected with Public Telephoneoffices. ToU Stations. I Total Telephonestations. Telephones per 1,000 of Population. 1947 1948 206,337 219,185 3,168 3,319 65,251 70,662 1,456 1,550* £ 2,050,313 2,118,169 4,300 4,000 1,829 1,836 282,341 300,552 158-2 163-9 * Includes 36 multi-coin telephones for effecting toll calls.

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Table No. 7. —Toll Calls

SAVINGS-BANK SERVICES Table No. 8.—Deposits and Withdrawals

Table No. 9. —Accounts opened and closed, etc.

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Year ended 31st March, Inland Toll Service. Radio-telephone Service. Number of Calls. Revenue from Paid Tolls. Forwarded. Received. Number of Calls. Revenue (New Zealand portion). Number of Calls. Revenue (New Zealand portion). 1947 1948 22,692,113 23,872,673* £ 1,588,160 1,722,584 4,361 4,699 1 £ 5,403 5,280 3,803 4,974 £ 4,827 4,167 * Includes 4,699 forwarded overseas calls.

Year ended 31st March, Number of Deposits. Total Amount of Deposits. Average Amount of each Deposit. Number of Withdrawals. Total Amount of Withdrawals. Average Amount of each Withdrawal. Excess of Deposits over Withdrawals. Interest credited. 1947.. 1948.. 3,123,503 3,292,887 £ 72,380,543 72,553,414 £ 23 22 2,220,522 2,353,442 £ 62,747,093 68,660,458 £ 28 29 £ 9,633,450 3,892,956 £ 3,094,491 3,307,081

Year ended 31st March, Number of Accounts opened. Number of Accounts closed. Number of Open Accounts as at 31st March. Total Amount of all Accounts, inclusive of Interest, as at 31st March. Average Amount of each Account as at 31st March. Number of Branches of the Post Office Savings-bank open at the Close of the Year. £ £ 1947 163,837 127,070 1,239,948 141,242,267 114 933 1948 165,588 128,271 1,277,265 148,442,304 116 936

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NATIONAL SAVINGS BONDS Table No. 11.—Bonds sold and redeemed, Years ended 31st March, 1947 and 1948

Approximate Cost of Paper.—Preparation, not given ; printing (743 copies), £6O. By Authority: E. V. Paul, Government Printer, Wellington.— 1948. Price 9d. J

NATIONAL SAVINGS Table No. 10.—Deposits, etc., Years ended 31st March, 1947 and 1948

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Year ended 31st March, Post Office. 1 Trustee Sa^ rings-banks. Total Amount at Credit of Post Office and Trustee Savings-banks. Deposits. Withdrawals. Interest to 30th June, Previous Year. Amount at Credit of Depositors. Deposits. Withdrawals. Interest to 1 30th June, Previous Year. j Amount at Credit of j Depositors. £ £ £, £ £ £ £ £ £ 1947 5.193,753 1,930,035 661,879 26,977,994 981,615 376,129 111,381 4,581,851 31,559,845 1948 6,280,060 3,069,198 773,496 30,962,352 1,005,363 611,252 131,943 5,107,905 36,070,257

Year ended 31st March, Value of Bonds sold. Value of Bonds redeemed.* ' 1947 1948 £ 457,041 492,697 £ 2,089,396 2,936,265 * Redeemable five years from date of issue.