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The same difficulty meets us in regard to the sanitary clauses. Provision for ventilation and for closet-accommodation is sometimes, in leased buildings, of a most primitive character. We must hope that, in time, as the local industries strengthen and mature, it will be possible for all employers to conduct their operations in suitable buildings, and not have, as at present, to choose between an infringement of the law protecting the health of their workpeople and the interests of landlords, who desire as few expensive alterations as possible in their premises. It would be a benefit to wage-earners, especially in the boot-trade, if wages were paid weekly instead of fortnightly. Those men and women who are not good managers get very pinched for means in the middle of the second week. The fortnightly custom of payment also tends to foster the credit system and the growth of long store accounts, which deprive working-men of the benefits of cash-payments, and often give them a long struggle with debt if bad times ensue. I beg to present to your notice my appreciation of the valuable services rendered to this department by the unpaid Inspectors of Factories. Their work has been done in addition to other duties as police officers, Clerks of Courts, &c. It would give great encouragement to them if the Government would make some pecuniary recognition of the manner in which they perform their duties. Although it is desirable that the Labour Department should perform its work with as much economy as possible, still, its efficiency would be greatly enhanced should material appreciation be awarded to deserving officers who have shown attention and earnestness in carrying out the provisions of the Factories and Shop-assistants Acts. THE SHOPS AND SHOP-ASSISTANTS ACT. Last year's report referred at some length to the subject of the difficulty found in carrying out the Act in its present form. There has been no reason presented by experience for altering such opinion. Nothing but a supervision so rigid as to be unbearable to employers would serve to enforce the existing law; and this cannot be used. Only a general closing of all shops on certain half-holidays will be effectual. There appears to be a gradual breaking-up of the early-closing movement in the towns. This insidious, attack on the working-hours of shop-assistants is initiated by the small shopkeeper, who keeps open later and later, thus dragging larger establishments into the evil fashion. In some of the towns of the colony the number of tenements and converted dwelling-houses pretending to be shops is quite phenomenal; and they are an unhealthy symptom in industrial life, as their owners produce nothing of value to the community, and live in continual struggle with debt and semistarvation. Their existence serves to embarrass legitimate traders, and lengthen unhealthily the hours of commercial labour. If the present law be not altered in favour of a shop-closing Act, there are some minor points requiring attention and amendment. 1. The sanitary sections of the Factories Act should be applied to shops. The ventilation, the degree of cleanliness, and the closet-accommodation require inspection. 2. The length of a working-day should be specified for women and young persons. These should not be required to work for more than ten hours and a half in any one day, nor for more than four hours and a half without an interval for a meal. 3. The onus of giving the half-holiday and seeing it enforced should lie on the employer. Some shopkeepers now say, "My assistant could have taken the half-holiday if he had liked; I never stopped him." It is unfair that the assistant should be made to ask for what is his legal right. 4. A proper dinner interval, say of an hour, should be set aside for meals. In some establishments it is well known that even the short time allowed is trenched upon if a customer appears. Far better health would be the portion of shop-assistants if they could get a brisk walk in the open air at mid-day. FACTORIES (AMENDMENTS). The portions of the Factories Acts which require amendment are as follows :— The Acts now in force define a factory or workroom as a place in which three or more persons are engaged, &c, &c. It has been found, in the course of experience, that, although it would be undesirable to require a fee from the occupier of any workroom in which less than three persons were employed for hire or reward, yet the supervision of Inspectors over such small establishments is necessary. The sanitary arrangements, especially as to ventilation, are in some respects destructive to health, while there is no check on the long hours worked by women and boys. In one case, a shoemaker in a. country town has two lads working for him, and these boys are kept to their stools for twelve hours a day, even their food being eaten without leaving their place of labour. It is an imperfect law which allows two young persons to be killed with overwork and bad air, but which steps in to prevent three being so treated. In small dressmaking establishments the hours worked are far too long, and the air-space not sufficient; but the number of persons employed is not sufficient to bring the employer under the present Act. The interpretation of "employer " requires more strictness of definition, as in some cases, where three or more persons are working together, they evade the Act by styling themselves partners (as " Brown and Company '•'). The word " occupier'' should be limited to one person, including husband or wife of occupier, but excluding relations, partners, &c, &c. In consequence of a decision in Court given against the Inspector when suing under present Act, it is desirable that it should be declared distinctly that factory certificates must be renewed annually. An establishment commencing business after the month of January (the date for receiving annual fees) should pay the fees as if working the whole year. An increase in the number of persons employed after the annual registration fee has been paid should be reported to the Inspector by the employer, and the extra fee (if any) paid. Mention has been made elsewhere of the desirability of introducing the "label" system for articles made in private houses and unregistered factories. There can be little doubt that such a 2—H. 6.