H.—ll

" boom "of two years ago could in the nature of things continue. The boot trade, though somewhat torpid in the North Island, was fairly busy in the South. Woollen-mills were kept at work to their full capacity—and no branch of industry is regarded in the colony with greater pride than this ; the quality of the products, the extension of fine buildings and machinery, and the treatment of the employees all tend to place these enterprises in the front rank of desirable local manufactures. Mills for the preparation of flax (phormium) have greatly increased in number and output. Freezing-works, tanneries, fellmongeries, furniture-factories, clothing, tailoring, and dressmaking establishments all have multiplied their hands and developed new business. In factories complaint is made of the lack of young people to fill the lower branches of skilled labour. In the appendix to this report is contained a diagram showing at a glance the position of the leading industries in 1895 (the year after the Industrial Conciliation and Arbitration Act was passed) and in the present year. It is hardly necessary, after the above statement, to say that there has been no pressure of " unemployed." There is in New Zealand, as elsewhere (and as there always has been where men gathered in communities), a number of persons who do not work—the sick, the maimed, the inebriate, the lazy—but these are subjects for the charitable aid societies or the Commissioner of Police rather than for the Labour Department. Beside these, there is also a certain number of worthy men and women temporarily out of work between discharge and engagement, but in most such cases it has only been a matter of a few days or hours that such unemployment has been experienced. Those who are enumerated in our schedules as having been assisted by the Labour Department have little or no relation to the class of unemployed of fourteen years ago. Those at present registered are artisans, mechanics, and labourers who have taken advantage of facilities offered by this Department to proceed to country districts, either to undertake contracts on the Government co-operative works or to employment with private persons. There have been 32,382 men assisted by the Department to obtain employment since inception in 1891. These men had 70,770 dependants, so that the total number benefited is 103,152.

Number of Men assisted by the Department since Institution to Date.

In my report of 1902 I alluded to the fact that the struggle of the local boot and shoe manufacturer to keep his grip of business in the face of the inrush of imported goods was mainly due to the highly specialised factories of the United States and European countries depositing in the colonies the overplus of their production. After having made long and diligent inquiry, I am confirmed in the opinion then expressed. Not only does high specialisation enable children's boots to be turned out from one factory, women's shoes from another, men's heavy boots from another, &c, in enormous quantities, and at a price with which no unspecialised plant could compete, but by means of amalgamation of interests in the trade the products are put upon the market through selling agencies organized to perfection. Nor is this system the only drawback against which colonial manufacturers have to contend. A more subtle and dangerous enemy is that of " double prices " — i.e., selling abroad for lower rates than in the country of production. Some American, French, and German goods can be purchased in New Zealand at half the price to be paid for them in the place where they were made. The people of those countries grumble loudly at the practice, and say that they are being exploited in order that an export trade may be built

II

Year. Total. Married. Single. Dependants. Private Government Work. Work. .891-92 .892-93 .893-94 .894-95 .895-96 .896-97 .897-98 .898-99 .899-1900 .900-1 .901-2 .902-3 2,593 3,874 3,341 3,030 2,871 1,718 2,035 2,115 2,147 3,124 1,830 3,704 1,054 1,808 1,836 2,007 1,880 1,084 1,163 1,178 1,115 1,326 713 1,492 1,539 2,066 1,505 1,023 991 634 872 937 1,032 1,798 1,117 2,212 4,729 7,802 7,942 8,883 8,424 4,719 4,928 4,759 4,471 5,432 2,747 5,934 1,730 863 2,518 1,356 1,019 2,322 894 2,136 708 2,163 652 1,066 544 1,491 638 i 1,477 486 1,661 519 2,605 396 1,434 580 3,124 32,382 16,656 15,726 70,770 10,684 ! 21,698