H.—l4.

Affairs (6), Justice (12), Land and Deeds (2), Land and Income Tax (3), Lands and Survey (17), Marine (5), National Provident (3), Native Trust (2), Printing and Stationery (6), Public Works (72), Scientific and Industrial Research (1) State Forests (9), and Valuation (3). Those Departments whose staff has increased are : Audit (5), Internal Affairs (relieving staff) (27), Labour (1), Native (5), Prisons (6), Public Trust (18), State Advances (4), State Fire Insurance (1), Treasury (1). As stated in my report for last year, the depression has in many cases considerably increased the volume and complexity of work and created many new problems to be dealt with. The increase in the number of officers attached to the relieving staff of the Internal Affairs Department was caused by the transfer from other Departments of surplus officers, most of whom are now engaged on duties connected with unemployment. The net increase of 18 officers in the Public Trust Department was due to the appointment of 36 cadets to that Department. During the years 1931 and 1932 this Department, in common with others, endeavoured to carry on without replacing officers retiring or resigning. At the close of 1932 it was apparent that in the interests of efficiency and to provide the necessary material for training, additional cadets were required, and early in 1933 over fifty cadets were appointed to the different Departments. Despite the fact that 23 probationer dental nurses were appointed during the year, the Health Department showed a net reduction of 7 officers. Since Ist April, 1930, the number of permanent employees (exclusive of administrative officers) under the control of the Public Service Commissioner has decreased from 7,803 officers, with total annual salaries of £2,332,527, to 7,391 officers, with total annual salaries of £1,836,921, at 31st March, 1933—a decrease of 412 officers and £495,606. University Training and the Public Service. In previous reports by my predecessors and myself, emphasis has been laid on the value of University training to the Public Service, and by pecuniary advantage and otherwise the furthering by public servants of their education has been encouraged. The value of such training has never been more clearly apparent than it is to-day, when many new problems are pressing upon Governments and their employeesproblems which have hitherto fallen beyond the scope of Governments. Departmental training is valuable in approaching these new tasks, but it is not enough— the universities have a function in extending and amplifying that training. Commonwealth Fund Fellowships. I am glad to be able again to acknowledge, from the viewpoint of the New Zealand Public Service, the gratitude that is felt towards the Commonwealth Fund Foundation, of New York, for their practical assistance in bringing post-graduate travel and education within the reach of members of our Dominion Service. The Commonwealth Fund was established, through the munificence of the Harkness family, to encourage friendly relations between England and America, and it has made provision for a number of years for the award of post-graduate fellowships to graduates of British universities who desire to pursue their studies in American universities. Since 1929 the fund has offered a limited number of fellowships for award to Civil servants from any part of the British Empire. These fellowships are handsomely endowed, and they afford unique opportunities for useful and pleasant study in the United States. The public servants to whom they are awarded are enabled to follow up whatever lines of inquiry they desire, with particular reference to problems in Government and public administration. The Commonwealth Fellowships have been eagerly sought by members of the New Zealand Public Service. Three fellowships have already been granted to New Zealanders, and keen interest is being shown by officers in applying for further awards. The highest praise and appreciation of the Commonwealth Fund are expressed by those who have held fellowships. It is required as a condition of award that persons who enjoy the benefit of a Commonwealth Fellowship should continue in the Government Service for at least two years after the completion of the term of the fellowship. This useful and reasonable provision meets the objection that is commonly raised, with some validity, to the value of other scholarships whose immediate beneficiaries may perhaps not even return to their own country.

2—H. 14.

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