H.—l4.

It is only by having his definite duty within a whole, the structure of which is not less well defined, that the Civil servant can live his life with satisfaction to himself and to the State. Much depends on really intelligent supervision and appreciation by the Permanent Heads, and not less on co-operation with them in the execution of a common purpose on the part of the whole staff. That is one reason why the organization, and its provisions for pay and promotion, must be such as to admit of general contentment right through the Service. For the reason I have indicated, the great saving which is always effected when there is a sufficiently good organization to exclude useless branches and members, Ido not think that this is an ideal of extravagance. Well carried out, it ought to result not only in a more efficient, but in a more economical Service. The spirit, then, is everything, for it will iii the end carry with it science of this kind in organization. And the spirit can only be at once real and reliable if it is based on adequate knowledge. I do not think that either the members of the public or of Parliament realize how difficult and delicate a problem organization is, and how much thought and knowledge it requires. Of course, an organization may only gradually develop itself, and may grow into a very efficient form. When this is so it is always because of unceasing stimulus from some strong motive which is always operative. That is the advantage which private enterprise has over State enterprise, and it is a very real one. Suggestions foe Improvement. Every encouragement is given by the Commissioner to officers to bring forward suggestions likely to improve the efficiency or organization of tlie Public Service, and in cases where the suggestion possesses any intrinsic merit it is the practice to make a small monetary reward. Qf the suggestions brought forward during last year, in only one case was a monetary consideration granted —namely, P. P. Morgan, Department of Agriculture, for a suggestion in regard to a method of securing increased circulation of the Journal of Agriculture. Retirement of Officers. The policy of retiring officers on reaching the age of sixty-five years is still being continued, except in a few cases where the special knowledge of the particular officer fully justifies an exception being made. For some time past the rule followed in respect of retirements is that an officer with forty years' service shall on reaching sixty years of age be retired, and this practice is being continued, except where there are special reasons why the services of an officer should be retained. Public Service Board of Appeal. In December, 1926, Colonel J. J. Esson, C.M.G., was appointed Chairman of the Board of Appeal in place of Mr. Peter Barr, who was absent from the Dominion on an extended tour. In October, 1927, Mr. Allison, Commissioner, Government Life Insurance Department, was appointed to act as a member of the Board during the absence of Mr. Jerram abroad on departmental duties. Colonel Esson and Mr. Jerram were reappointed to the Board —Colonel Esson as Chairman, under the provisions of the Public Service Amendment Act, 1927 —the appointments taking effect as from the Ist December, 1927. In accordance with the provisions of the Public Service Act an election by ballot for two representatives of the Public Service to act on the Public Service Board of Appeal was held in May, 1928, Four names were received, the result being that Messrs. G. N. Morris and A. S. Houston were elected to the Board. The sitting members, Messrs. C. de JJ. Andrews and H. C. Hulme, who submitted themselves for re-election were defeated. Mr. Andrews had been a member continuously since May, 1919, and Mr. Hulme from May, 1922. There were three sittings of the Board of Appeal for the year ended 31st March, 1928. Seventy-seven appeals were dealt with. The result of the appeals were as follows : Allowed, 2 ; disallowed, 55 ; withdrawn, 4 ; did not lie, 16. The Public Service Association has from time to time recommended that the Chairman of the Public Service Board of Appeal should be a Magistrate. The present constitution of the Board of Appeal is as follows : (a) Two of whom at least one should be an officer of the Public Service, to", be appointed by the Governor-General, one of whom shall be Chairman of the Board ; and (b) Two persons, being officers of the Public Service employed in different Departments, to be elected by officers of the Public Service; and while only one of the elected members actually sits on the Board at the hearing of an appeal, the other elected member

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