C. —7.

1939. NEW ZEALAND.

STATE IRON AND STEEL DEPARTMENT (FIRST ANNUAL REPORT OF THE).

Presented to both Houses of the General Assembly by Command of His Excellency.

Wellington, 23rd August, 1939. Your Excellency,— I have the honour to submit for your Excellency's information the report of the State Iron and Steel Department for the year ended 31st March, 1939. I have, &c., D. G. Sullivan, Minister in Charge of the State Iron and Steel Department. His Excellency the Governor-General of the Dominion of New Zealand.

The Hon. D. G. Sullivan, Minister in Charge of the State Iron and Steel Department. Sir,-- Wellington, 18th August, 1939. I have the honour to submit the first annual report of the State Iron and Steel Department. For the sake of continuity this report covers a period prior to the actual formation of the Department in June of last year, and also in certain instances refers to developments since the 31st March, 1939. I have, &c., G. A. Pascoe, Commissioner.

REPORT. Ikon and Steel Industry Act, 1937. The Iron and Steel Industry Act, 1937, was passed in March, 1938, during the second portion of the 1937 parliamentary session. It provides authority for the establishment, as a State undertaking, of an industry for the production of iron and steel and iron and steel products, and for this purpose the Minister of Finance is empowered to borrow up to £5,000,000. By the Act the right to mine for iron-ore (including ironsand) in New Zealand is restricted to the Commissioners, for whose appointment provision is made. Department established. For the purpose of carrying out the administration of the Iron and Steel Industry Act a new Department, known as the State Iron and Steel Department (Iron and Steel Commission), was established on the Ist June last year. As disclosed in the Department's estimates for this year, the present staff of the Department is small in number. The basis of the organization, however, will permit of its ready expansion as required to meet the needs of the construction programme, which has now been determined upon. During the period of preliminary investigation, which covers the whole of the year under review, the staff of the Department was recruited mainly by obtaining the necessary officers on loan from other Departments. I—C. 7.