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Porcelain. —Production has increased almost 50 per cent. A new factory is almost ready, and this will enable a further heavy increase to be made. Cups should come through at the rate of 10,000 per day and saucers at 5,000 per day ; 1,500,000 cups were made in twelve months, and the manufacturers expect to make 2,500,000 cups this coming year. Up to the present there is a satisfactory supply of labour in the district for this work. Soap and Candles. —Soap-production has increased, Defence orders taking 20 per cent. Production of candles is about the same, 60 per cent, being Defence orders. The necessary labour is hard to obtain to keep up output. Roofing-tiles.—The general position is that production has decreased owing to shortage of labour. The bulk of the output is required for hospitals, State houses, &c., and only a small quantity for civilian use. Toothbrushes.—Companies have been fully engaged over the past year, mainly on the production of toothbrushes for the Military Forces of the Eastern group. In addition to this, contracts on behalf of the Army have been undertaken by these firms for the manufacture of bullet-tips and radio-dial parts, while considerable activity in the production of tail combs and civilian toothbrushes has also been recorded. Woodwork.—Defence orders and essential household and kitchen lines account for practically the whole output during the last year. Timber and labour shortages and the household furniture control have resulted in the cutting-out of all ornamental and luxury articles hitherto made in considerable numbers by wood-turners and others, and considerable economies have resulted. Linseed-oil. —The manufacturing company advises that the full production schedule is being maintained. No difficulties either with respect to raw materials or man-power are being experienced. Ranges and Stoves. —Wartime production has been maintained, although difficulty has been experienced in obtaining certain specialized small parts. A steady trade is being maintained in the servicing of ranges, grates, &c., already installed. USE OF SUBSTITUTES Local firms have proved particularly adept in the use of substitute materials and the evolution of alternative processes. The opinion is freely expressed that many invaluable lessons in efficiency and curtailment of waste have been learned through sheer necessity. The realization that the generallyaccepted method of procedure is not invariably the shortest or most efficient is all to the good both from a present-day and post-war point of view. Examples of utilization of substitute or scrap materials are— (а) Ferrous metals for non-ferrous in production of plated spoons : (б) Plastic material for button-production in lieu of metal. (c) Increasing use of wood and glass for articles of domestic use : (d) Re-use of milk-powder tins for production of billies, tin kettles, &c. (e) Use of case strappings for manufacture of bird-cages, rat-traps, soap-holders, &c. (/) Utilization of linen-flax tow to some extent as a substitute tow in fibrous-plaster and furniture production. BUREAU OF INDUSTRY INDUSTRIAL EFFICIENCY ACT, 1936 During the year a few changes took place in the personnel of the Bureau. Mr. C. R. J". Atkin found it necessary, consequent upon his promotion to the position of Accountant to the Treasury, to tender his resignation, and his place was taken by Mr. D. W. A. Barker, Investigating Officer of the Treasury. Mr. E. J. Fawcett, who was appointed Director-General of Agriculture during the year, was compelled, on account of his many and varied duties, to relinquish his position on the Bureau, and Mr. R. B. Tennent, Assistant Director of Agriculture, was appointed to replace him. Mr. C. M. Bowden, special member representing manufacturers' interests, who was elected to Parliament at the last elections, has found that such calls are now being made on his time as to necessitate his relinquishing his position on the Bureau. His resignation has therefore been accepted with regret by the Minister and the New Zealand Manufacturers' Federation has been asked to nominate a suitable appointee in his place. During the period under review the Bureau of Industry met thirty times. The Executive of the Bureau also met on a number of occasions to give consideration to matters of an urgent nature. The total number of applications for new licenses, transfers of licenses, extensions of licenses, &c., dealt with was 1,166, classified hereunder according to the industries concerned :— Fisheries .. .. .. 647 Nail-manufacture .. .. 2 Petrol reselling .. .. .. 314 Fruit and vegetable canning .. 2 otwcar 125 Apple-juice 2 Pharmacy .. .. 36 Paper-pulp and products.. .. 8 Fruit and vegetable retailing .. 7 Asbestos-cement products .. 1 Fish-liver oil .. .. .. 7 Wooden heels .. .. .. 1 Phormium-flax milling .. .. 4 Macaroni .. .. .. 1 Radio .. .. .. .. 3 Linseed-oil and linseed-cake .. 1 Malt extract .. .. .. 3 Rope and twine .. .. 1

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