P.—l.

STATEMENT OF FINANCIAL OPERATIONS AND BUSINESS OF THE DEPARTMENT FOR THE YEAR ENDED 31st MARCH, 1935. RECEIPTS AND PAYMENTS. The receipts and payments of the Department for the financial year 1934-35 are shown in the following account: —■ Receipts. Payments. £ s. d. £ s. d. £ s. d. £ s. d. To Balance forward .. .. 36,954 7 11|- By Salaries .. .. 1, 569, 497 19 2 Postages .. .. 937,041 9 0 Conveyance of ocean mails 84,233 19 1 Money-order and postal- Conveyance of inland mails 119,246 17 8 note commission .. 59,543 16 8 Conveyance of mails by rail 79,463 8 6 Private box and bag rents Maintenance of telegraph and rural-delivery fees 48,327 12 5 and telephone lines .. 73,027 5 8 Miscellaneous receipts .. 378,605 18 3 Renewals and replacements 81,863 16 4 Paid telegrams .. 280,123 12 8J- Motor services and workPaid tolls .. .. 448,562 11 1 shops .. .. 28,318 15 5 Telephone - exchange Miscellaneous .. .. 262,902 0 3 rentals .. 1,190,772 16 11 Interest on capital liability 546,000 0 0 3,342,977 17 0J 2,844,554 2 1 Paid to Consolidated Fund .. .. 13,000 0 0 £3,379,932 5 0 Renewal and replacement of Assets Fund = :—; (investment) .. .. .. .. 485,000 0 0 Balance carried down .. .. .. 37,378 2 11 £ s. d. — To Balance brought down .. .. £37,378 211 £3,379,932 5 0 The total cash value of the transactions of the Department, inclusive of the above, amounted to approximately £205,000,000. STAFF. The trend towards more prosperous times referred to in last year's report continued during the year, and it is gratifying to record that the Department's business further increased and that it was necessary again to add to the numerical strength of the staff. An important feature of the improvement is that more avenues of advancement have been created for deserving juniors and for messageboys. In filling the consequential vacancies the Department has been able to assist materially in the solution of the youth-unemployment problem. The figures in the table below indicate the extent of the staff changes and give some idea of the progress made. During the closing months of the year the increase in work was particularly evident in the Telephone Branch, where reduced rates for toll communications and several telephone-exchange service innovations did much to popularize the telephone and to induce more frequent use of the service by the public. This general improvement in business enabled a reversion to be made on the 2nd September to cash payment to officers for overtime worked. The system of granting equivalent time off had operated continuously since the Bth December, 1930, and the change was warmly welcomed by officers throughout the Service. The decision of Government to increase salaries by 5 per cent., as from the Ist April, 1934, also was received with gratification by officers of the Department. In common with other sections of the community, officers suffered financially during recent years, and the small increase which the country's finances permitted has been of material help to members of the staff generally. It is hoped that economic conditions will continue to improve, and that it will be possible in the near future to proceed with the general reclassification of the Service which, in ordinary course, would have taken place on the Ist April, 1934. Officers again responded zealously to all demands made upon them during the year, and the reputation for efficiency that the Service has enjoyed in the past has been fully maintained. Conditions during the Christmas holiday season were exceptionally strenuous, long and arduous hours of duty being necessary to cope with the additional business. By cheerfully devoting their best energies to meeting the rush of business inseparable from that period, officers again earned the commendation both of the Administration and of the general public. Comparative Return of Persons employed in the Department. Details of the personnel of the Department on the Ist April, 1935, compared with the position on the same date last year, are as under : — Ist April, Ist April, Permanent Staff— 1934. 1935. Special . . . . .. ■ • ■ • • • 9 10 First Division .. .. .. •• •• 3,352 3,465 Second Division .. .. .. •• •• 4,375 4,629 Message-boys .. .. .. • • • • 674 581 8,410 8,685 Temporary Staff .. .. .. • ■ • • 69 91 Casual Stafl 81 97 8,560 8,873 Non-permanent Staff — Country Postmasters and Telephonists .. .. 1,677 1,658 Postmasters who are Railway officers .. .. 86 86 10,323 10,617

13