H—lB

considerable, generally giving an apprentice an average of 50 per cent, of journeyman's rates throughout the term of his contract. In the case of a five-year contract these percentages ranged from 23 per cent, in the first six months to 77 per cent, of journeyman's rates in the tenth six months. The effect of the general increase has resulted in a substantial decrease in the Board's contributions, and steps were taken to adjust employers' payments in line with the Court decisions. Generally speaking, the increases in the legal rate payable by the employers have been accepted with a minimum of dissension, as it has been contended in many quarters that the increases were long overdue. Recently, however, representations were made by the Employers' Federation, after consultation with other interested parties, that consideration be given by the Department of Labour to the desirability of amending the regulations to the extent of reducing somewhat the employer's financial liability. With this principle the Rehabilitation Board is in general agreement, as it will have the overall effect of bringing presentday conditions into line with the effect envisaged when the regulations were gazetted in 1944.

3, Table IX of the Appendix gives the figures of ex-servicemen dealt with under "C " Class training for the year ended 31st March, 1946. A comparison of the figures in this table with the equivalent totals for the previous year is as follows :

(v) Intermediate Employment Scheme 1. The Intermediate Scheme is designed to provide therapeutic employment for partially disabled ex-servicemen. Men are provided with congenial light employment, graded according to the varying degrees of physical exertion maintainable by each. 2. While in some districts it has been possible suitably to place in employment recuperating ex-servicemen in need of light work or special treatment, in other areas it has been found necessary to establish intermediate therapeutic employment schemes to provide, in co-operation with local bodies and other employing authorities, suitable temporary therapeutic employment for such men as a means of hastening their successful reabsorption into the industrial and social life of the community. At present Intermediate Schemes are operating at Auckland, Napier, Blenheim, Christchurch, Temuka, Dunedin, and Invercargill. 3. As at 31st March, 1946, nineteen men were employed under the scheme, and a total of 107 had successfully terminated their training and were transferred from the scheme. 4. It is interesting to note that a medical report on the scheme indicates that it has been functioning sufficiently long to enable the authors to state that it is of great value to war-worn and neurotic servicemen in re-establishing them in civil life and that the scheme provides suitable jobs under sheltered conditions to ensure that in most cases the neurotic symptoms in time completely disappear. (vi) Wages Increase The Arbitration Court awarded a general increase in the wages of journeymen covered by awards, as from Ist April, 1945. The Board considered that it was equitable for the wages of trainees to be advanced on a similar basis, and it was therefore decided to increase the wages of "A" and "B " Class trainees by 10s. per week, all with effect from the date of the general increase. All employers undertaking the training

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As at 31st March, Increase for 1940. ■ 1945. Year. Ex-servicemen in training Ex-servicemen completed training 950 174 318 54 632 120 Totals 1,124 372 752