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SECRETARY'S REPORT. The Hon. D. G. Sullivan, Minister in Charge of Scientific and Industrial Research. I have the honour to submit herewith the annual report of the Department for the year 1937-38. E. Marsden, Secretary.

The Council of Scientific and Industrial Research held five meetings during the year. The personnel of the Council is as follows : — Professor H. G. Denham, M.A., D.Sc., Ph.D., F.1.C., F.R.S.N.Z., Professor of Chemistry, Canterbury University College, Christchurch (Chairman). Dr. J. C. Andrews, Ph.D., M.Sc., Freezing-works Manager, Auckland. Mr. A. H. Cockayne, 1.5.0., Director-General of Agriculture, Wellington. Professor J. Malcolm, M.D., Ch.B., Professor of Physiology, University of Otago, Dunedin. Dr. R. 0. Page, D.Sc., Tannery-works Manager, Christchurch. Mr. G. A. Pascoe, Department of Industries and Commerce. Mr. J. M. Ranstead, Matangi, Farmer. Professor W. Riddet, B.Sc.(Agric.), N.D.A., N.D.D., Massey Agricultural College. Sir Theodore Rigg, M.A., M.Sc., F.1.C., F.R.S.N.Z., Director, Cawthron Institute, Nelson. Dr. E. Marsden, M.C., C.8.E., D.Sc., F.R.S.N.Z. (Secretary). Mr. T. IT. McCombs, M.P., M.Sc., attended meetings of the Council as the special representative of the Hon. the Minister. The expenditure of the Department during the year was as follows : — Permanent services— Head Office, publications (including the New Zealand Journal of Science and Technology), Research Scholarships, and grants to the Royal Society of New Zealand, the Australian and New Zealand Association for the £ Advancement of Science, and the Imperial Institute .. .. 11,782 Dominion Laboratory (with branches) .. .. .. .. 18,300 Geological Survey .. .. .. .. .. .. 7, 626 Meteorological Office .. .. .. .. .. .. 17,445 Apia Observatory .. . . . . .. . . . . 3,578 Magnetic Observatory .. .. .. .. .. .. 2,695 Dominion Observatory .. .. .. .. .. .. 2,601 Grants to Imperial Agricultural Bureaux .. .. .. .. 5,588 Research investigations .. .. .. .. . . .. 93,847 163,462 Recoveries .. .. .. .. .. .. .. 33,406 Net expenditure . . .. .. .. . . £130,056 GENERAL. As in previous years, grants were made to the following research organizations in Great Britain participating in the inter-Imperial Agricultural Research Scheme : The Imperial Agricultural Bureaux headquarters, £1,438 ; the Cambridge Low Temperature Research Station, £2,000, of which the Meat Board contributed £1,000 ; Farnham House Entomological Laboratory, £750 ; the Imperial Institute of Entomology, £450 ; the Imperial Mycological Institute, £350; and the British Wool Industries Research Association, Torridon, £300. Grants of £113 to the Bureau of Dairy Science and £187 to the Bureau of Forestry, both of which were recently established under the Imperial Agricultural Bureaux scheme, were also made. During the past year the steady development and consolidation of the Department's activities in industrial research and in providing essential scientific services to the Government have been fully maintained. In addition, the needs of several industries which have hitherto lacked a centralized and co-ordinated research and technical service have been provided for by the formation of research associations. I refer to the woollen-manufacturing, boot- and shoe-manufacturing, and tobacco industries. The Woollen Manufacturers' and the Leather and Shoe Research Associations are financed by direct contributions from the industries concerned, subsidized £1 for £1 from the Consolidated Fund ; while the Tobacco Research scheme is financed by funds contributed by the industry through the Tobacco Control Board, and subsidized similarly from the Consolidated Fund. All three schemes have functioned very successfully since their initiation, and the results obtained and the services rendered have fully justified their institution. The hearty co-operation of the industries concerned and the -readiness of their members to bring forward a&d discuss their problems with the research officers have contributed greatly towards the effectiveness of the services rendered.

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