H.—l4.

8

trasted with what obtains at the present time. The following is an extract from the Commissioner's annual report in 1913 : — Under the system by which the Public Service was divided into a number of Departments there was little co-operation between them. One of the most glaring examples is, or has been, the lack of co-operation between Departments and the Treasury. Although the latter Department is in sole charge of the accounts of the Dominion, it has not for a long time exercised its full powers. There has, for example, been no inspection by the Treasury and no examination of the method of account-keeping of Departments, with the result that a mass of work is unnecessarily duplicated at considerable expense and to the detriment of efficiency. Some Departments, it is said, pay little heed to the directions of the Treasury, and in the past, when the Treasury has endeavoured to assert itself in simple matters, it has often happened that the Minister in charge of the offending Department has been called in to support his own officers, which he would naturally do. While the lack of co-operation may be to some extent accounted for by the absence of a central control such as now exists, the position has been rendered more difficult in the past by the number of small Departments which, although nominally grouped under large Departments, maintain a practically independent existence . . . So great has the division become that in at least two important Departments the tendency has been to rigidly separate every section of the office, each section having most of the machinery of an independent Department and offering the same lack of co-operation within the Department itself as would exist if the divisions of the Department were separate concerns. It would be possible to multiply examples of the lack of co-operation between Departments and the branches of Departments . . . In contradistinction, the present position, which may be attributed to the persistent efforts of my predecessors and the close co-operation of Treasury, Audit, and other Departments concerned, must be regarded as a distinct improvement. Financial control is now effectively consolidated by Treasury exercising more complete supervision in all matters pertaining to the expenditure and finances of Departments. The question of Stores Regulations and control has been reviewed and placed on a more satisfactory footing. Departmental accounts are now required to be placed on a proper basis to enable Departments to produce an annual balance-sheet on commercial lines. In Departments engaged in industrial or manufacturing activities proper systems of costing are required to be kept. A system of inspection has been instituted to ensure that regulations are duly observed and practices are in order. The Treasury now has three Inspecting Officers, besides which many of the larger Departments have their own Inspectors. There is abundant evidence to show that, as the result of the system of central control, coupled with a policy of unified eiiort, the organization of Departments has been improved, the machinery of government has attained a higher standard of efficiency, and the public interests are better served. Suggestions for Improvements. The changing conditions in the Service, due to expansion of business and increased Governmental activity, give plenty of scope for initiative on the part of all departmental officers. It is desired that improvements in methods shall keep pace with new developments, in order that the business of the State shall be conducted as economically as possible, and with this object in view all officers are asked to co-operate by submitting any suggestions they may have to make in this respect. P.S. Regulation 17 is a standing invitation to officers to forward, for the consideration of the Commissioner, any fresh ideas or proposals that are likely to improve the efficiency of Departments. Even if these are not considered by the Commissioner to be suitable for adoption, the submission of an intelligent suggestion is regarded as an evidence of zeal, and it is duly noted on the personal file of the officer concerned. Mr. L. J. Bayfeild, of the Tourist Department, submitted a proposal, which was adopted, in regard to the booking of tickets by officers travelling on public business. It is estimated that there will be a considerable saving to Government by way of commissions allowed by transport companies, and there will also be the further advantage that all fares will be checked before payment by expert officers. Mr. Bayfeild has been awarded a cash bonus.