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undertakings were released to return to their former employment. These losses were offset to a large extent by the return of a substantial number of public servants from the Armed Forces. On balance, despite the rapidly changing situation, the requirements of the Service have, with a few exceptions, been met by the staff available. The staffing position is still very fluid, however, and must continue to be closely watched so that employees from Departments showing decreasing activities are made available for those Departments showing expanding functions. One of the most difficult Departments to staff has been the Rehabilitation Department. It has been necessary to draw officers from practically every Department of the Public Service, as well as to recruit temporary staff from outside the Service to cope with the increasing volume of work. In this Department an endeavour has been made to place returned servicemen in every executive position having any contact with returning men. It is felt that this policy, although it has accentuated the staffing difficulties, is justified in the trust and confidence the returned serviceman should have in the knowledge that his case is being dealt with by men with a personal appreciation of his problems. Application of Industrial Man-power Regulations to the Public Service The conduct of Government business has to continue during time of war, and it was only natural that the Public Service as a whole should have been declared an essential- undertaking within the terms of the Industrial Manpower Regulations. This had the effect of giving the Service certain priorities in obtaining staff during the war years and also of restricting resignations. There is no doubt that the protection of these regulations was of considerable benefit in the years of greatest staffing difficulty. Indeed, it would have been impossible to carry on the civilian functions of Departments during the war years without the assistance of these regulations. Along with most other essential undertakings, the year under review has seen an almost complete relaxation of all man-power control in the Public Service. However necessary during war years, experience has shown that such controls could be tolerated in a society such as New Zealand only while the nation was fully mobilized and that the restrictions had become very irksome when the need declined. While appreciating the valuable contribution made to the work of the Service by directed staff during the war period, there is little doubt that the most efficient service is given, in the long run, by the employee who is free to choose his employment and to leave employment which he regards as uncongenial. Recruitment op Cadets Difficulty is still being experienced in securing sufficient cadets for the Public Service. For the year ended 31st December, 1945, the cadets appointed totalled 391, distributed as follows: Wellington .. . . .. .. .. 149 Auckland . . . . . . .. 62 Other North Island centres .. . . . . 74 Christchurch .. . . . . .. 37 Dunedin . . . . . . . . . . ..25 Other South Island centres . . .. 44 Total . . .. .. .. .. 391 Although the number of appointments is in excess of the previous year (317) it is still below the figure required to fill existing vacancies in the Public Service.

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