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Administrative Changes. Since the last report the following changes have taken place in the Administrative Division: — Education Department. —On the 31st January, 1927, Mr. J. Caughley, Director of Education, retired on superannuation. He was replaced by Mr. T. B. Strong, Assistant Director of Education, who was in turn replaced by Mr. A. Bell, who previously held the office of Secretary. Prisons Department. —Mr. B. L. Dallard, Public Service Inspector, who had temporarily assumed the position of Controller-General of Prisons in order that certain reorganization might be effected, was confirmed in the position. Scientific and Industrial Research Department. —Following on the recommendation of Sir Frank Heath, Government decided to create a Department of Scientific and Industrial Research. Dr. E. Mardsen, formerly Assistant Director of Education, was appointed to the position of Secretary, and the following branches of other Departments were grouped under the newly created Department: — Number of Officers transferred. Dominion Laboratory .. .. .. .. 17 Dominion Observatory .. .. .. .. 3 Geological Survey .. . . .. .. 9 Meteorological Branch . . . . . . . . 5 Since the creation of the Department its activities have been considerably extended, necessitating the appointment of several additional professional officers. Government Insurance. —On the 13th December, 1926, Mr. A. T. Traversi, Commissioner, retired on superannuation. He was succeeded by Mr. A. E. Allison, who formerly held the position of Deputy Commissioner. During the year the Actuarial Branch was separated from the Government Insurance Department and attached to the Department of Internal Affairs. Mr. C. Gostelow is in control of the branch as Government Actuary. The work of the National Provident and Friendly Societies Department was also separated and transferred to the Treasury Department, Mr. R. E. Hayes holding the position of Superintendent; and the Public Service Superannuation Office was again placed under separate control. Mental Hospitals Department. —Sir F. Truby King, Inspector-General of Mental Hospitals, and Director, Division of Child Welfare, retired on superannuation on the 31st October, 1927. He was replaced by Dr. T. G. Gray, Deputy InspectorGeneral . It is scarcely necessary for me to refer to the extremely valuable services that have been rendered the State by Sir Truby King, particularly in regard to childwelfare work, in connection with which the Plunket Society and the valuable work carried on by it will be a lasting memorial. Appointments and Promotions. The Public Service Act provides that, when additions to the Public Service (other than to junior positions such as cadetships) are required, notice thereof shall be given in the public press. The competition for Government positions has been keen. A large number of the applications received indicate the high qualifications possessed by individual applicants. In addition to inviting applications from within New Zealand, applications are invited from beyond the Dominion for professional and technical positions in which it is difficult to secure the desired training in New Zealand. During the year ended 31st March, 1927, the number of vacancies advertised in the public press was 120. The total number of applications received for these positions was ],659, and the number of appointments from outside the Service was 117. It is the practice also to invite applications from within the Service for any position which would probably be filled by the promotion of an officer already in the Service. Such, vacancies are advertised in the Public Service Official Circular, or by way of circular memorandum within a Department if it appears that the position is one which will most likely be better filled by an officer of that Department. The

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