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Military Medal.- -Bombardier R. I. Brake, Clerk, Hastings ; Lance-Corporal C. A. J. Browning, Telegraphist, Napier ; Sapper W. H. Gibbs, .Lineman, Auckland; Second} Corporal P. L. Keys, Telegraphist, Dunedin; Sapper W. J. Kinghan, Telegraphist, Thames; Sergeant J. A. Little, Letter-carrier, Gisborno; Sapper P. McQuillan, Lineman, Auckland; Sergeant (!. V. T. Moore, Senior Clerk and Telegraphist, Taihape ; Sapper R. .1. Pratt, Lineman, Auckland ; Sapper C. H. Raxworthy, Clerk, C.P.0., Auckland ; Private ■ A. A. Rossiter, Lineman, Dannevirke. Meritorious-service Medal. —Staff Sergeant C. B. Burdekin, Correspondence Clerk, Accountant's Branch, General Post Office. Si'ver Medal (Serbian) and mentioned in Despatches. —Sergeant P. D. Holmes, Telegraphist, Wellington. Mentioned in Despatches. — Lieutenant E. Burrows, Clerk, Masterton ; Lieutenant T. P. M. Grace, Clerk, General Post Office; Captain R. F. C. Scott, Clerk, New Plymouth; Sapper W. Ward, Lineman, Christchurch ; Sergeant J. G. Young, Telegraphist, Titriaru. Bronze Medal (Dalian) for Military Valour. —Sergeant F. C. Robinson, Telegraphist, RadioAwanui. Work of Commissioners. 10. Mr. Triggs, Assistant Commissioner, resigned on the 10th October last to take up the position of Public Trustee, and will continue to carry out the duties of Controller of the Department of Imperial Government Supplies. Government decided that it was not necessary at present to fill the position of Assistant Commissioner. The Commissioners regret the loss of a colleague who was associated with them in the heavy work which fell upon the Commission during the early stages of its career. 11. Inspection of offices outside Wellington has been fairly well maintained during the year. The principal places visited were —Auckland, Cambridge, Christchurch, Dannevirke, Greymouth, Hamilton, Hokitika, Lake Coleridge, Lyttelton, Masterton, Napier, Paeroa, Ruakura, 'Laihape, Tauranga, Te Awamutu, Te Kuiti, Thames, Waihi. Expansion op the Service. 12. It has been frequently pointed out that if it were determined there should be no expansion in any Department, the cost of the Service would decrease year by year ; but such a stagnation of the Dominion as this would imply cannot well be imagined. The war, instead of reducing business, as appeared possible at one . time, has had the contrary effect; and many Government activities have been rather in the direction of increase than decrease, while it may be expected that new Departments will be created, and others expanded, as the result of the closing period of the war and the succeeding peace. 13. It is evident that, in the case of non-trading Departments, the decision whether additional facilities are to be granted to the public, or positions created for the purpose of increasing the paternal care of the people, is entirely one for Government. Considerable attention has been given during the past few years to restricting expansion for such purposes, but it is noticed that there is again a tendency to revert to the creation of positions for the carrying-out of new schemes. 14. While there are many factors which require consideration, a general review of the Public Service for the year ended 31st March last will be of interest in connection with the expansion of the Service. Excluding the Post and Telegraph Department (which will be referred to later), there was, for the first time in six years, a decrease and not an expansion during the year : that is, on the Ist April, .1.91.7, the salary bill was £1,208,979 for 6,217 permanent officers, and on the 31st March, 1918, £1,181,558 for (5,264 officers—a decrease of £27,420 in amount, and an increase of 47 officers. . 15. On the Ist April of this year the statutory classification increments, £46,595, were added, and new appointments, £4,960, were made, leaving the commencing figures for the new year at £1,231,433, or an increase of £22,454 over the Ist April, 1917. In the previous year the corresponding increase was, in round figures, £50,030, and the year before that within a few pounds of £60,000. 16. It will thus be seen that, taking Departments as a whole, there has been a reasonable effort towards economy.