H.—2.

In Australia, contact is being retained with all travel groups and companies, and the distribution of literature and publicity materials is being maintained on a reduced scale in order to keep in touch with the tourist business generally. In New Zealand, where interest in travel to our resorts is steadily increasing, publicity activities are being continued with good results. With the establishment of a New Zealand representative at New Delhi, India, the opportunity is being taken to widen the publicity campaign in that country. Supplies of literature, especially that prepared for Eastern countries, have been despatched, and will be followed by regular consignments at frequent intervals. Stocks of publicity literature are being carefully conserved at the present time, and supplies for overseas offices have been reduced to a minimum, being only despatched to points from which business may be reasonably expected. Internal Travel. In the matter of internal travel, all of the departmental Bureaux report increased business. A large number of excursions were organized, most of these being to hotels and resorts managed by the Department. South Island Bureaux arranged a number of tours of North Island resorts, and many parties were arranged for the South Island by the Auckland and Wellington offices. During the Christmas and January periods, travel was so brisk that it was difficult to secure sufficient accommodation unless bookings were made well in advance. Many letters of appreciation were received by the managers of the Bureaux from satisfied clients. Financial. The revenue collected from the various activities controlled by the Department, and the expenditure from the Consolidated and Public Works Funds, for the past six years was as follows: — Return of Receipts, 1935-40. 1935-36. 1936-37. 1937-38. 1938-39. 1939-40. 1940-41. £ £ £ £ £ £ Receipts .. .. .. 84,564 100,678 115,973 124,134 113,482 109,940 Return of Expenditure, 1935-40. 1935-36. 1936-37. 1937-38. 1938-39. 1939-40. 1940-41. £ £ £ £ £ £ Consolidated Fund.. .. 124,151* 148,389* 175,120* 203,200* 184,908* 161,734 Public Works Fund .. 13,683 16,789 23,159 24,551 24,892 21,575

* Includes expenditure on overseas publicity.

Tickets sales at the Government Tourist Bureaux for the past six years were as follows : — £ £ 1935-36 .. .. .. 402,148 1938-39 .. .. .. 564,787 1936-37 .. .. .. 480,789 1939-40.. .. .. 544,517 1937-38 .. .. .. 533,847 1940-41 .. .. .. 523,141 Department's Film and Advertising Studios. The Studio-manager reports that in spite of difficulties caused by a shortage of staff through enlistment and other causes during the year a large volume of important work was carried out. The completion of the New Zealand Centennial Film, a 5,000 ft. feature picture covering the story of our early history from the time of the first s organized settlement and the signing of the Treaty of Waitangi to the present day, formed one of the major undertakings in connection with the Centennial period. This picture, considered by those in the film business in the Dominion to have attained a high standard of production, was officially handed over to the Patriotic Society by the Prime Minister for general release purposes. Other outstanding pictures completed during the period under review were — (1) " Growing Malting Barley," a major two-reel picture produced for the Agriculture Department: (2) " Royal Mail," a picture depicting the work of the Postal Service, produced for the Post and Telegraph Department: (3) " Fishermen's Paradise." This picture was a record of the visit of Mr. M. Lerner, from the Museum of Natural History, New York : (4) " Spinning Wheels." This was a special picture made for the Transport Department's campaign on road safety : (5) Another outstanding production was the film entitled " Wings over New Zealand." This picture was made on the authority of the Director of Publicity, Prime Minister's Department. As its title implies, it portrays the fine work being performed by our young airmen in preparation for the sterner tasks of war.

3