H.—34.

MINISTER'S STATEMENT. The outbreak of war in September last necessitated the full co-ordination of all the Dominion's resources for the prosecution of our war effort. Eesearch is essentially a continuous operation, which must be carried on both in times of war and of peace. The immediate effect of the outbreak of hostilities is to re-orient a country's research facilities and personnel to attack problems of prime importance arising out of war conditions. Immediately on the outbreak of war the resources of the Department of Scientific and Industrial Eesearch were placed at the disposal of the Defence authorities, the Ministry of Supply, and the various controllers operating thereunder. Investigations relating to problems of supply, increase of production, and conservation of natural resources were initiated by the Department itself. Maximum production of foodstuffs requires that losses from disease be minimized and that the soil and crop resources be utilized to the best possible advantage. Furthermore, care must be taken that in securing increased production the fertility of the soil is not exhausted. In order to provide against such eventualities steps have been taken by the Department to intensify its agricultural research work in many directions. The campaign against plant diseases and insect pests has been intensified. Soil surveys, which are basic to sound and economic land development, and which point the way to the most economic use of fertilizers, are being accelerated as rapidly as possible, and hence a rapid survey of the soils of New Zealand is being undertaken and is already well advanced in the North Island. Every phase of every primary and secondary industry is being brought under close investigation, so that, if at all possible, maximum exploitation of the Dominion's resources as a war effort will go hand in hand with conservation of these resources, thus ensuring that they will remain unimpaired by the stress of the times and be available for future expansion and development. A new industry which is now well on the way to successM establishment is the production of linen fibre. Prior to the outbreak of war, investigations, both local and overseas, into the possibilities of the establishment of such an industry had been made with very encouraging results. Trial plantings of selected varieties of linen flax in Canterbury showed that fibre of the desired quality could be successfully grown, and would at the same time provide for a profitable diversification of farming practice. Further developments in the war situation had the effect of cutting off supplies of linen fibre formerly obtained by Britain from European sources, and an appeal has been made to the Dominions to accelerate production of linen flax as rapidly as possible to help to supply the deficiency. Steps will be taken in the coming season to plant the maximum acreage possible in New Zealand with the seed available, and at the same time plans are being formulated for the development of the industry so as to provide the necessary organization for the processing and marketing of the crop. This provides an example of the value of patient and thorough research in the establishment of an industry and in making provision for supplies necessary in times of national emergency. Problems relating to the storage of foodstuffs assume great importance in wartime, and the Department is giving special attention to methods of storing fruit and dairy-produce designed to meet emergency conditions. Problems of supply are not concerned wholly with primary products. Supplies of materials for many of our secondary industries have become more difficult to obtain or are unavailable as a result of the war, and it has become necessary to look more closely at our local resources of minerals, and, indeed, all other raw materials, with a view to supplying substitutes. In this connection close liaison with the Department of Industries and Commerce has been effected through a special Inter-departmental Technical Committee upon which both Departments are represented.

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