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28. Mattresses and Bedding. Reports from this industry reveal that sales over the past year show an increase. Orders on hand for mattresses and quilts continue to be most gratifying, but the difficulty and delay in obtaining adequate supplies of imported raw materials are causing some concern. Two new factories connected with this industry are in the process of completion in the Wellington district, and will soon be in production. 29. Radios. The industry has been brought within the licensing provisions of the Industrial Efficiency Act, and licenses authorizing new units to operate in this industry have been issued by the Bureau of Industry. This confines the industry at present to those who have received a license, subject, of course, to any license which may be granted to overseas applicants. Due mainly to the importrestriction scheme, the whole of the domestic radio market has been confined to New Zealand manufacturers, and this has resulted in the removal from the New Zealand market of some well-known brands. However, certain of the firms operating radio have extended their operations to manufacture under the existing brands, so that there is still a wide variety of types available to the public. The demand has varied considerably as between individual units, but the past year has not been exceptional so far as sales are concerned. From present indications, however, it would appear that the coming season should show very much increased activity, and it is abundantly clear that the existing manufacturers in New Zealand are capable of meeting any demand which may arise. No outstanding developments have occurred in the radio field, and it can be said quite confidently that the New Zealand product has compared quite favourably with the best imported. 30. Wireworking. Units in this industry have developed further lines of business, but progress has been somewhat retarded by difficulties arising out of war conditions in obtaining supplies of wire. 31. Matches. Under the Import Control Regulations the imports of matches were greatly restricted as arrangements were made with the local industry to increase the production so that the whole of the New Zealand demand could be catered for, and with the existing plant considerable increases in production have been made, owing to the genuine co-operation of the manufacturers. Arrangements were made for the duplication of the plant for the manufacture of wooden matches, but delays in the supply of equipment arising out of war conditions have impeded the duplication of output, which is now expected to be effective by the middle of 1940. Some difficulty has also been experienced in obtaining suitable labour in the match-factories. Some agitation was raised in regard to shortage of matches, but it appears that this shortage has been accentuated by hoarding and possible faulty distribution of matches, and additional imports had to be allowed to maintain supplies on the market. It is anticipated that by the end of 1940, provided supplies of raw material are available, New Zealand will be producing its own supplies of matches. NEW INDUSTRIES. The expansion of local industry, which during the past few years has been a feature of the Dominion's economic life, was continued during the year under review. While official statistics are not yet available, a survey recently made by the Department indicates that during the past year at least 190 factories have been opened employing approximately 2,968 people. This list does not include all the factories which have commenced production, but is limited to those which from their size and the scope of their activities can be termed manufacturing industries in the real sense of the word. Of this number, 46 are new structures especially erected to carry out industrial processes. The number of people employed in these newly-erected factories totals 953. In the Wellington district some 90 factories employing 1,645 people have gone into production during the year, necessitating the building of 29 new factories employing 494 people. Someof these newly-erected factories have only just been completed and production has not yet reached its peak. Some idea of the progress that has been made by local manufacturers to supply the market for goods previously imported can be gained from the following list of products the manufacture of which has commenced during the past year : Parchment lamp-shades, rubberware for milking-machines, fruit-cases, soft-goods, tennis-shoes, rustproofing, trout-fishing flies, iodized table salt, fibrous plaster, tartan novelties, biscuits, bricks and tiles, sewing-mops, hosiery, corsets, boxes, springs, inks, handbags, terrazo, nails and staples, paint, paper cartons, rubber solution, zinc oxide, cosmetics, concentrated foods, jellies, toys, bolts and nuts, cornflour, liver salts, pharmaceutical preparations, electrical appliances, batteries, malted milk, lacquers, soap, litharge, mattresses, cotton-wool, carpets, carbondioxide gas, flock, plastics, buttons, buckles, &c., cigarette-papers, tobacco and cigarettes, steel wool and potmits, varnishes and waxes, washing-machines, sporting goods, dentifrice, raincoats, electroplated ware, concrete goods, cordials, caravans, block board, veneer panels and mouldings, solderingfluid, valve-grinding paste, plastic wood, gasket cement, spoons, forks, and butter-knives, hat-blocks, gluten, dextrine, glucose, and handkerchiefs.

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