B—6

'Regrading of State Services The legislation governing the major State Services provides for the regrading of those Services at intervals of not more than five years. The last statutory regrading undertaken was in 1937, and this would have been followed by a further review in 1942. It was, however, necessary to postpone the regrading during the war years, but the Government agreed to it being put in hand immediately hostilities ceased. The Railways Service, the Post and Telegraph Service, and the Departments under the control of the Public Service Commissioner will all be regraded as at Ist April, 1946. This involves the task of reviewing the salary grading of all positions in these Services, and, where necessary, realigning them. New salary scales, incorporating the cost-of-living bonus, have now been approved by the Government for application with the regrading. The review of positions and the introduction of revised scales should do much to remove any anomalies that have become apparent since 1937, and enable the Public Service to embark on its post-war tasks with the staff position placed on a proper basis. In addition to the services mentioned, a report has recently been presented to the Government by a Consultative Committee •covering recommendations in connection with the salaries of both primary and post-primary teachers. This report is receiving the urgent attention of the Government and an announcement will be made shortly as to the new rates which will cover, in addition, the salaries of the University teaching-staff. As regards the Armed Services, proposals for a general regrading have been prepared by the Navy, Army, and Air Force and are now being considered by a co-ordination committee representative of the three Services. As' soon as these investigations have been completed, they will be reviewed by the Government and a decision announced. Superannuation of State employees Legislation was passed last session of Parliament, improving very materially the superannuation benefits payable to State employees. It is proposed to introduce this session, a general consolidating and unifying, measure, when any existing anomalies will be removed. THE FUTURE Before outlining in detail the new proposals with regard to taxation, I would take this opportunity of discussing some of the longrange plans for the economic and social developments of New Zealand. Housing The Government's housing programme envisages the construction of 12,000 houses per annum during the next five years. Timber

31