H.—44

During the period 26 licenses were surrendered or revoked and a total of 38 applicants were granted permission to suspend operations under their licenses, whilst 5 such applications were declined. During the year there was very little relaxation of the petrol restrictions imposed as a war measure. Any additional quantities made available went mainly to primary producers to cover increased production. Petrol resellers, consequently, operated under restricted gallonages. Fisheries.—With the return of certain trawlers from naval service, and the expected return of others in the near future, coupled with a marked falling away in demands of military establishments, the supplies of fish have continued to show general improvement. There were many applications for new licenses during the year. A substantial number of fishermen are serving with the Armed Forces, and on their return from service they may resume the licenses held by them should they so desire. During the year the two licensed units engaged in the extraction of nutritional or medicinal oils from fish livers at Auckland and Wellington respectively continued to make substantial progress. This industry is already proving its value in the contribution it is making of high-grade vitamin oils, much of which is exported overseas for ultimate use as an essential ingredient in the diets of those on wartime rations. At the same time, much of this valuable commodity is being used domestically for introduction into medicines and foods. The following table shows the number of licenses current as at 31st March, 1945, in their various classifications, and indicates separately the number of fishing licenses held by the Bureau on behalf of members serving with the Armed Forces :— Licensed fishermen .. .. 1,650 Licensed fish exporters .. 25 Licensed fishermen serving with 268 Licensed fish-canners .. 17 the Armed Forces Licensed oyster-dredgers .. .. 11 Licensed fish retailers .. .". 653 Fish-oil licensees .. .. 2 Licensed fish wholesalers .. 42 Footwear. —The Footwear Plan Industrial Committee has held nine meetings since the last report. The closest liaison has been maintained with the Controller to co-relate planned civilian production with New Zealand and overseas military requirements. Adjustments to civilian allocations have been effected from time to time to ensure that overall production is maintained with no detriment to any particular class of consumer ; the industry has generously co-operated with the Standards Institute in the formulation of standards of minimum quality. Owing to ill health, Mr. E. G. Bridgens, Chairman of the Footwear Plan Industrial Committee, tendered his resignation. It is with deep regret that his death is recorded, as he gave most valuable service to the Committee and was its first Chairman. Since June last, therefore, Mr. H. 0. Pittendrigh has acted as Chairman. In September last the Committee grasped the opportunity offered by the recent amendment to the Act to employ a technical adviser, who had a very close contact with each unit over a period of years. It was considered that his experience and knowledge would be invaluable to the Committee in preparing plans for post-war production to give economic security to the industry and the best possible service to the consumer. He has already progressed with his investigations, and his report and submissions are awaited with interest. Agar.'—The production of agar-agar by the only manufacturing unit is proceeding satisfactorily. The average weekly production is 700 lb. Under existing conditions and with the present plant this must be considered the maximum output. Moreover, the amount of weed available for manufacturing purposes is not likely to be sufficient to keep more than one factory running economically. However, the output of the finished product from the factory is adequate to cover New Zealand's requirements and provide a reasonable surplus for export overseas. The agar produced is of good quality and uniform grade, forming a much stronger gel than the pre-war Japanese product, thus enabling its use in smaller quantities (0-6 g. of the New Zealand product is equivalent to I*o g. Japanese). Salt.—During the year a license was granted to an Auckland firm to engage in the industry of manufacturing salt by a patented process. The license was, however, limited to a total production of up to 5,000 tons per annum. The other licensee, situatfed in Christchurch, is still pursuing development work. Macaroni Products. —The only licensee engaged in the production of macaroni products increased production to 343,966 lb. It is anticipated that, due to additional plant installed, there will be a further increase of production for the year ending 31st March, 1946. The company is in a position to meet the present demands throughout the country for all three types of product. Fruit and Vegetable Canning. —A license was granted during the year to a Wairoa firm to can fruit and vegetables other than stone-fruit, citrus fruit, and pip-fruit; all licensees have been working satisfactorily and economically, and the existing plants have adequate capacity to handle the present available supplies of canning varieties of fruit and vegetables. Pulp and Paper Products. —Consequent on the issue of licenses, reported last year, for further development of the pulp and paper industry, representatives of local mills have been overseas investigating methods and seeking for sources of supply of machinery. Shipments of quantities of Pinus insignis timber have been made to the United States of America for the purpose of running practical mill tests to determine the suitability of this timber for pulping for various grades of paper. Production of paper and cardboard has been well maintained, while s'oft. insulating board output has expanded yery considerably. Substantial quantities of the latter are still being supplied to the Eastern Group Supply Council. The advantage of the existence in New Zealand of paper-mills is being proved in the valuable contribution being made in providing for military and wartime civilian demands.

6