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Offences committed by Officers. The method of dealing with offences is prescribed by sections 52 to 56 of the Public Service Act. In the case of minor offences the matter is dealt with by the Head of the Department, but all the more serious cases are referred to the Public Service Commissioner, who may conduct an inquiry himself, or delegate his powers and functions, with the approval of the Governor-General in Council, to any fit person or persons. Section 57 provides that where an officer is convicted of certain crimes he shall be deemed to have forfeited his office. During the year all cases of offences committed by officers have been fully investigated, and inquiries have been held by the Commissioner where necessary. The principal classes of cases dealt with, and the decisions arrived at, are as follow : — (a) Misappropriation (11) : Forfeited office (8) ; dismissed (2) ; transferred and reduced (1). (b) Neglect of duty (2) : Dismissed (1) ; allowed to resign (1). (e) Drunkenness and disorderly conduct (2) : Dismissed. (id) Unsatisfactory conduct (5) : Censured (1) ; retired (1); dismissed (1) ; allowed to resign (1) ; transferred (1). Conclusion. The efficiency of a Public Service may best be shown by its capacity to carry out promptly and properly its duties and obligations to the public. In this respect I feel it is generally recognized by all who come into close contact with the various Departments of State that the Public Service generally and the individuals composing that service have attained and are maintaining public confidence. It has been aptly stated that "the elementary principles underlying efficient administration of a Public Service are admission to the Service on the basis of proved capacity, the proper training of officers for their future life's work, and, in order to develop the potentially efficient, the payment of fair and adequate remuneration for services rendered, the effective demarcation of each officer's functions and responsibilities, and, lastly, an active and vigilant supervision." These principles form the basis of the provisions of the Public Service Act. Time and experience have proved the soundness of the principles in the Dominion, and it can be definitely stated that the result has been a marked increase in efficiency. The necessity for economy in administration has been consistently brought under the notice of Permanent Heads. lam satisfied that responsible officials are imbued with the necessity for rigid economy in expenditure, the restriction of unremunerative services, and the prevention of undue expansion of staff. In concluding, I desire to place on record my acknowledgment of the generous measure of support and co-operation which Departmental Heads and others have accorded me during the past year, and to express my appreciation of the loyal and devoted assistance of the members of my immediate staff. All of which is humbly submitted for Your Excellency's gracious consideration. Commissioner. Office of the Public Service Commissioner, Ist October, 1927.

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