11.—45.

and loss of £3,497 in wages. This compares with 6 disputes for the year 31st March, 1941, with a loss of 405 man-working days and loss of £444 in wages. When it is understood that there are not less than 1,000,000 man-working days in the year, the days lost by disputes—viz., 405 —represent only o'o4 per cent, of total working-days. Wherever stoppages have occurred, the Commission has been reluctantly compelled to invoke the powers of the Waterfront Control Commission Emergency Regulations 1940 and inflict severe penalties in certain cases. The Commission appreciates the fact that efficiency and industrial peace, so essential in the present emergency, depend far less on the penalties provided by statute than on common-sense, good will, and co-operation, and therefore these attributes are offered to and invited from waterside workers at every possible opportunity. EFFECT ON SECONDARY PORTS OF THE SHORTAGE OF SHIPPING AND CENTRALIZATION OF AVAILABLE SHIPPING AT MAIN PORTS. The diversion of shipping for naval and military purposes both here and abroad, the transfer of some overseas vessels from the Dominion trade to shorter routes, the loss of shipping due to enemy action, together with the loss due to the perils of the sea, have all contributed to the difficulties of attempting to maintain our overseas and coastwise trade. The four main ports, particularly Auckland and Wellington, have not felt the effects of the loss of shipping tonnage to anything like the extent that the secondary ports have, due to the policy of centralizing shipping at the former ports. The secondary ports, with the possible exceptions of Napier and New Plymouth, have been severely affected, and the authorities who control them are faced with serious financial difficulties. The considerable reduction in the amount of work offering at the smaller ports has also affected the earnings of the waterside workers, many of whom cannot earn a subsistence wage. Some of the men have entered the armed Services, while others have drifted away to other employment. The readjustment still continues, but there has been genuine hardship among some who could not move to other locations due to personal and family reasons, &c. There are a number of factors which contribute to the very real difficulties of effecting a proper balance between the number of men required for the effective working of the ships, which call irregularly, and the provision of an adequate wage to maintain the number required. In the meantime there is much dissatisfaction among the remaining men over the position in which circumstances beyond their control have placed them. The Government has been able in some ports to grant assistance by providing supplementary : work under Scheme 13, but the scheme possesses disadvantages to the partially unemployed waterside worker compared with the men who rely on the scheme solely to provide their income. This is understandable, as Scheme 13 was designed for the re-employment of men without work, not to provide ■partial employment as a subsidiary to under-employment of waterside workers. The Commission realizes that unless some scheme can be evolved attractive enough to retain the number of men required for the effective operation of cargo-working, then costly delays to ships will occur through lack of labour or the employment of inefficient men not required by other industries. Already it is noticeable that inefficient labour is replacing to some extent the men that have gone, and efßcienoy is thus impaired. As the working of ships transcends in importance that of any State Employment scheme, a satisfactory solution of the problem is essential, and it is hoped to enlist the assistance of the Government in this direction. ACCOUNTS. The accounts of the Commission fall under three headings : — (a) Consolidated Fund expenditure. (b) Co-operative contracting. (c) Labour Engagement Bureaux and Central Pay Offices. Consolidated Fund Expenditure. The administrative expenses of the Commission are payable from the Consolidated Fund, and details of expenditure may be found in the annual accounts of the Labour Department. The estimate of expenditure for the year ending 31st March, 1941, was £11,690. The actual amount expended was £8,773. The estimate for the ensuing financial year is £10,647. The increase over previous year's expenditure is due to additional staff required on account of " round the' clock " working of overseas vessels. Expenditure for 1940-41 was also for portion of year only. Co-operative Contracting. The total value of contracts entered into by the Commission up to 31st March, 1941, was £407,289 3s. Id., and an amount of £42,796 15s. 9d. was distributed to the casual waterside workers employed, representing an average profit of 9-52 d. per working-hour. A table in the Appendix summarizes the position. Arrangements were made by the Commission whereby casual waterside workers employed by the Railways Department, Harbour Boards, and freezing companies and working in conjunction with casual waterside workers employed under the co-operative contract system should receive an equivalent profit distribution. The amount distributed up to 31st March, 1941, was £3,838 6s. 10d. Details are summarized in a table appearing in the Appendix.

6