H.—llA,

In connection with its promotion of employment activities this Division is in close contact with, and receives helpful co-operation from, other Departments of State; in addition, it is represented on the Building Committees, the Land Development Committee, the Primary Production Councils, and the Man-power Committee ; it has also given substantial assistance to the Building Co-ordination Committee. In view of the experience gained over the years in the placement of labour and of the organization which is established per medium of the State Placement Servioe for the bringing-together of prospective employer and suitable employee, it is anticipated that the Employment Division will be used as part of the official machinery in connection with certain phases of the task of the rehabilitation of returned soldiers. PROMOTION OF EMPLOYMENT. The policy of arranging full-time work for physically fit men whom it has not been possible to absorb in private employment has been continued throughout the year with undiminished vigour ; to this end subsidies have been made available to local bodies, farmers, &c., for the employment of disengaged men on suitable works of a national or local character and of a definite value to the community inasmuch as some ultimate return will be obtained by way of production, improved amenities, &c. An intensive drive was inaugurated during the winter months to transfer men from unproductive works under Scheme No. 13 to productive employment by way of farm-development under Scheme No. 4b. Table Vof the Appendix, showing the numbers of men in subsidized full-time employment, indicates the success achieved in this respect and that the numbers employed on Scheme No. 4b rose from 530 in April to 3,906 in December, when the peak was reached ; a more or less corresponding reduction taking place in the numbers employed under Scheme No. 13. In pursuance of this policy a review of men employed under Scheme No. 13 was carried out during January to discover their relative fitness, in age-groups, to accept employment in farming or other normal pursuits. The results of this review are shown in Table VI of the Appendix, from which it will be seen that out of 10,007 men, 2,364 were physically unfit for the heavy work involved, 3,267 were fit but owing to various verified reasons could not accept positions involving separation from wife and/or family, and 4,367 were suited for the work. The age-groups shown in this table are of interest, indicating as they do that 6,000 of the men employed were forty years of age or over, and of the remaining 4,000 the larger number were over thirty years of age. FINANCIAL. Consequent upon the inauguration of the Social Security Scheme and the abolition of the Employment Promotion Fund, provision for expenditure incurred in the promotion of employment is now subject to appropriation by Parliament in terms of the Public Revenues Act, 1926, and during the year under review the sum of £2,598,145 was appropriated from the Consolidated Fund under vote," Labour," for the promotion of employment and administration expenses. In addition to the funds appropriated, there was a balance of £207,544 remaining in the Employment Promotion Fund at the Ist April, 1939, the major portion of this balance being absorbed in the payment of commitments outstanding against that Fund at the 31st March, 1939. The total amount available for the promotion of employment and administration expenses during the year under review was therefore £2,805,689, but this amount was exceeded by £177,875, the net payments for the year amounting to £2,983,564. The following is a summary of payments made from the Employment Promotion Fund and from the Consolidated Fund, vote, " Labour," during the year ended 31st March, 1940, together with comparative figures under the respective headings during the year ended 31st March, 1939 -

2

Year ended Year ended 31st March, 1939. 31st March, 1940. £ s. d. £ 8. d. General work relief 117,143 8 10 3,057 19 10 Gold-prospecting schemes .. .. .. .. 50,238 3 1 1,404 4 0 Promotion of employment on farms .. .. .. 59,886 5 11 118,072 5 5 Promotion of employment in building trades .. .. 27,756 16 9 25,209 16 8 Promotion of full-time employment: General .. .. 4,595,290 11 6 2,708,519 2 1 Promotion of employment amongst boys .. .. .. 2,235,18 10 594 13 7 Grants to Native Department for promotion of employment 414,941 5 5 amongst Maoris Relief of unemployment amongst women .. .. .. 7,914 5 7 Assistance to industry .. .. .. .. .. 118,459 5 1 5,833 5 2 Sustenance-allowances .. .. .. .. .. 667,149 0 3 7,813 8 1 Miscellaneous grants and subsidies .. .. .. 1,374 17 5 447 16 6 Compensation, ex gratia payments, &c. .. .. .. 5,350 10 10 1,541 2 9 Purchase of food, clothing, &c. .. .. .. .. 2,047 6 6 441 10 8 Bonuses to workers .. .. .. .. .. 32,845 6 2 242 11 9 Transport of workers .. .. ... .. .. 5,782 19 0 2,111 18 7 Miscellaneous loans .. .. .. .. .. 65,407 5 2 8,584 14 2 Administration expenses .. .. .. .. .. 330,989 12 5 99,689 5 6 Totals.. .. .. .. .. .. 6,504,812 18 9 2,983,563 14 9