H.—44.

Refining of Used Oil. This industry was licensed during the year for the purpose of assisting the Government as far as possible in its war effort by the reduction of waste. While no licenses have, as yet, been issued, a large number of units are engaged in the industry, and it is anticipated that the* organization of the industry along planned lines will considerably assist in the recovery and utilization of a valuable product which might otherwise be lost. Manufacture of Salt. Consideration is at present being given to applications received to commence in the industry. To date, no unit has commenced production on a commercial scale, and therefore it is too early to ascertain whether or not the industry can be undertaken on an economic and profitable basis. The industry has, however, promise of being a very important one in the industrial structure of the Dominion and would result in considerable savings of overseas funds. Wooden Heels. The output of this industry is more than sufficient to meet the needs of the Dominion. Steps have been taken by the Bureau to ensure that a reserve stock of heels is maintained sufficient to meet the immediate requirements of the market in the event of the licensee being unable to continue manufacture in an emergency. Pulp and Paper Products. A large factory at Penrose is now approaching completion, and within the next few weeks it is expected that fibreboard (wallboard) will be available to the extent of Now Zealand's present tonnage requirements. In conclusion, it may be stated that the Industrial Efficiency Act has already demonstrated that it is capable of materially assisting in the development of industries throughout the Dominion. It .is claimed that it has been effective in promoting the orderly development of those industries which have already been brought under the administration of the Bureau of Industry, and it Would seem that with the application of industrial planning the effectiveness of that, administration will be even more beneficial in the future. MINISTRY OF SUPPLY. During the last twelve months there have been notable changes both in the supply organization and in the supply position. Control has been expanded by the appointment of a Munitions Controller; the overseas organization of the New Zealand Ministry of Supply has been enlarged by the opening of offices in Washington, New York, and Ottawa, in North America, while in India, following upon a New Zealand delegation which attended the Eastern Group Conference, called by His Excellency the Viceroy of India, New Zealand has accepted membership on the Eastern Group Supply Council with headquarters at New Delhi, India, and Mr. F. R. Picot, late Director of Internal Marketing and Food Controller, has taken up the appointment. As part of New Zealand's " all in " war effort the Supply Control Emergency Regulations 1939, Amendment No. I, provided for the control of industries, the requisitioning or purchasing of property, and the waiving of conditions of contracts, while provision is also made for the setting-up of a Supply Advisory Council to advise the Minister of Supply on any matters referred to it by him. The War Cabinet has authorized the establishment of a Supply Council, such as was envisaged in the amendment to the Supply Control Emergency Regulations, its functions to be the centralizing of all orders for the requirements of the armed forces, the control of such commodities as may be needed for defence purposes, and the responsibility of deciding priorities in regard to defence supplies and in -regard to shipping, while the Council is also authorized to deal with possible economies and substitution in our present consumption and with the reclamation and utilization of waste. The question of requisitioning or commandeering supplies required for defence purposes would also be one of its functions. One of the most momentous decisions made by the United States of America in recent years has been the passing of the Lease-Lend Act, under which supplies for Great Britain are made available without the necessity of immediately finding dollar credits. With the object of clearing up the position in so far as it related to Now Zealand, and in an endeavour to improve the supply position from that source, a Ministerial delegation comprising the Hon. F. Langstone, the Right Hon. J. G. Coates, Mr. C. Duncan (Director of Marketing), Mr. L. J . Schmitt (Secretary of Supply), and Mr. J. P. D. Johnsen (Customs Department) recently left New Zealand for the United States and Canada. In June of last year a Ministerial delegation consisting of the Hon. I). G. Sullivan (Minister of Supply), Mr. L. J. Schmitt (Secretary of Supply), Major Erridge (Army Department), the late Mr. E. T. Spidy (Munitions Controller), Mr. E. 0. Fussell (Reserve Bank), and. Mr. J. Cable (Engineer) visited Australia with the object of clarifying the position in regard to supplies from that country and also for the purpose of placing large defence and munitions orders. In. addition to the above, arrangements have been made for periodical meetings of Ministers to be held in either Australia or New Zealand with the object of co-ordinating the two countries' war activities with special reference to munitions and supply matters. The first meeting of this Consultative Committee is to be held in the very near future. The Hon. R. Semple recently visited Australia in connection with vital supplies of steel and other essential metals, particularly the importation of the necessary materials for construction of steel minesweepers and universal carriers in this Dominion.

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