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Royal New Zealand Naval Volunteer Supplementary Reserve 4. During the war the total number of Royal New Zealand Naval Volunteer officers, both permanent and temporary, serving at the peak period was some 1,700. It was obvious to the Naval Board that even a quarter of this number could not be entered iii the post-war permanent Royal New Zealand Naval Volunteer Reserve, and, as the Board were most anxious to retain contact with as many as possible of these wartime officers who served their country so loyally and well, it was decided to form the Supplementary Reserve. Applications for membership have been called for from among temporary officers now discharged, and the response has been good. Ex-officers who enrol in the Supplementary Reserve are willing to be called up in time of emergency to again serve in the Royal New Zealand Navy. It will not be possible to give members any training on the lines of the active permanent Royal New Zealand Naval Volunteer Reserve, but it is hoped that in time it may become possible to hold short refresher courses covering the various branches of the Navy to which members belong. SECTION XI.—CIVILIAN STAFF AND DOCKYARD WORKMEN Permanent and Temporary Civilian Staff, Navy Office, Wellington Trend of Work In work relating directly to serving personnel of the Royal New Zealand Navy a steady decrease has taken place, but the clearance of arrears of accounting and recording work associated with the payment of war-service gratuities, deferred pay, and reconstruction of pay accounts of discharged personnel has necessitated the retention of a larger staff than was previously anticipated. 2. Decision involving retrospective adjustments has been a major factor in delaying a final settlement of pay accounts of personnel who served during the war. Recent provisions involve a reconstruction of approximately 4,000 pay accounts from the Ist April,, 1946, in applying the new rates of pay —the basis of computation of leave for personnel who served overseas prior to 19th April, 1944, has been altered—and a special rate of war-service gratuity has been introduced for service in mine-sweepers. The loss during the last year of many of the staff trained in these branches of work has had its effect in delaying the clearance of arrears. 3. The implementation of the Government's post-war defence policy has involved organization of recruiting campaigns, and the machinery clerical work involved in keeping records of entries, drafting, training, &c., necessitates the retention in the meantime of staff, which will be reduced when the post-war establishment is stable. 4. The disposal of surplus stores and equipment by the War Assets Realization Board is not yet completed and necessitates the continued full-time employment of at least two male clerical officers in Navy Office, besides various stores staff engaged in the direct handling of the goods. This Department is also committed to some extent to pay the cost of safeguarding surplus stores by provision of watchmen until released from liability by the War Assets Realization Board. 5. In accordance with the policy of the Public Service Commission in improving the efficiency and educational standards of the Public Service, a number of major proposals are now in process of implementation. Extensive provision has been made for tuition of temporary officers to qualify them for appointment to the permanent staff and for tuition in Public Service knowledge, Government accounts, and English for the Public Service Senior Promotion Examination. This involves a certain amount of time off for lectures and study purposes, particularly in connection with ex-servicemen, a policy which, while being of undoubted benefit from the long-term view, does slightly reduce the available working capacity of the staff. The projected transfer of the majority of temporary employees in the Government Service to the permanent staff requires a major survey and reorganization of the Navy Office and Auckland Dockyard establishment to arrive at a permanent complement of established positions. A certain amount of preliminary work has already been done in this connection, but it

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