D.-2,

WARTIME ACTIVITIES. The Dominion's participation in the war has brought greatly increased demands upon the railways organization, but it is pleasing to be able to record that all calls made upon the Department as a result of the expansion of national productive activities and the transportation of troops and military supplies and equipment have been met in an efficient and expeditious manner. Working in close co-operation with the Defence authorities the Department has made available, in an increasing degree, skilled personnel and services and facilities to further the successful prosecution of the war effort. Particularly has this been the case in respect of the Workshops Branch, which, since the outbreak of hostilities in September, 1939, has undertaken a considerable amount of work connected with the manufacture and production of various types of vehicles, equipment, and materials for war purposes. Activities in this regard have been greatly expanded in the financial year under review, and will no doubt continue to do so for some considerable time to come. As at the 31st March, 1941, the number of employees who were with the armed forces for overseas service totalled 2,767. Units of the Emergency Precautions Scheme, recruited entirely from the rank and. file of the Department, are now functioning, or are in course of formation, at the main coastal and other key railway centres throughout the system.. Close liaison in respect of training and in the matter of the provision of equipment is maintained between other units of the Emergency Precautions Scheme and the departmental units which have been organized for the purpose of safeguarding railway personnel and property and the maintenance of railway services in any emergent conditions which might arise. In June, 1940, a Railway Patriotic Fund was established within the Department for the purpose of assisting the National and Provincial Funds approved by the Government. All contributions to the Fund are, of course, entirely voluntary and are deducted each fortnight from the amount of or salary due to contributors. From the date of the inauguration of the Fund until 31st March last contributions made by the staff to the Railway Patriotic Fund totalled £7,019. Railwaymen have also closely identified themselves with the National Savings Movement, and national savings groups are now functioning in every branch of the Department. TRACK, PLANT, AND ROLLING-STOCK. The track, bridges, structures, signalling-appliances, rolling-stock, locomotives, and other plant are in good order and efficient for the work required of them. STAFF. The average number of persons employed in the Department throughout the year ended 31st March, 1941, was 24,502, compared with an average of 25,710 for the previous year. The average number of men engaged exclusively on works chargeable to capital was 2,237, compared with 2,932 during the previous year. The total number of staff employed at the 31st March, 1941, including those on works chargeable to capital, was 23,971. This figure does not include 1,673 permanent employees and 1,094 casual employees who as at 31st March, 1941, were serving with overseas units of the armed forces, and 310 permanent employees and 203 casual employees who as at 31st March, 1941, were undergoing territorial training. The total number of employees as at the end of the previous financial year was 25,855 (excluding 858 men serving with the armed forces). 01 the total staff as at 31st March, 1941, excluding those serving with the armed forces, 14,674were permanent and 9,297 were casual employees. During the year 418 members of the permanent staff resigned, 248 retired on superannuation, 60 died, and 63 were dismissed or paid off. Employees to the number of 1,426 were engaged for employment on the permanent staff. Seventy members of the Second Division were promoted to the First Division. A total of £48,036 was paid under the Workers' Compensation Act during the year to members of the Second Division of the Service who suffered injury in the course of their employment. I desire to place on record my appreciation of the loyal co-operation of the staff generally during a particularly arduous year. With the exception of an unfortunate stoppage of work at the Hutt Workshops, members of the staff have rendered excellent service to the Department. b - ~ GENERAL MANAGER.

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