PUBLIC SERVICE COMMISSIONER (TWENTIETH REPORT OF THE).

Appendix to the Journals of the House of Representatives, 1932 Session I-II, H-14

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1932. NEW ZEALAND.

PUBLIC SERVICE COMMISSIONER (TWENTIETH REPORT OF THE).

Presented to both Houses of the General Assembly by Command oj His Excellency.

To His Excellency the Eight Honourable Charles, Baron Bledisloe, Member of His Majesty's Most Honourable Privy Council, Knight Grand Cross of the Most Distinguished Order of Saint Michael and Saint George, Knight Commander of the Most Excellent Order of the British Empire, Governor-General and Commander-in-Chief in and over His Majesty's Dominion of New Zealand and its Dependencies. May it please Your Excellency,— As Commissioner appointed under the Public Service Act, 1912, I have the honour to submit the following report, as required by section 15 of the Act.

KBPOBT. The Administration op the Public Service. During the past year, in common with other sections of the community, the Public Service has borne the strain of circumstances arising out of the economicdepression, and in consequence of these abnormal conditions the administrative problems have been greatly intensified. In normal times the routine of administration of the Public Service Act might briefly be described as the procedure necessary to ensure the efficient organization and staffing of State Departments ; and under this head are such matters as promotions, retirements, the filling of vacancies, inquiries involving disciplinary action, and investigations concerning details of departmental organization to ensure the efficient and economical administration of the Service as a composite whole ; but during the past year a greater amount of investigational work has been undertaken, both independently and in conjunction with official committees, in an endeavour to explore all possible avenues of economy and to consider means of dealing with problems arising out of the depression.

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In such times as the Dominion has experienced during the past year, the necessity for drastic curtailment of expenditure in every possible direction has involved a closer analysis of problems of departmental administration. Frequent reviews of staffing arrangements have been made to meet the altered conditions, vacancies have been filled only when absolutely essential, and, wherever possible, amalgamation of positions and co-ordination of activities have been effected. As far as practicable, departmental staffs have been required to carry on without assistance during the absence of officers on leave, and only in exceptional circumstances has leave been approved where relief has been necessary. Notwithstanding the restrictions and curtailments, both in staff and expenditure, that have been imposed through the demands of economy, the general efficiency of the Service has been well maintained. It is pleasing to be able to place on record that the Service as a whole has risen readily and appreciatively to the demands that have been made upon it, and, despite the extremely adverse conditions, the added burdens that have been placed on officers, and the curtailed emoluments through the operation of the salary cuts, there has been a loyal acceptance by the Service of the necessities of the times. Economies in the Public Service. With a view to effecting economies and curtailing administration costs, the public services of the Dominion have been overhauled twice within the past two years by two independent authorities ; once by a special Cabinet Committee under the Chairmanship of Sir Apirana Ngata, with whom were associated the Public Service Commissioner and the Secretary to the Treasury, and later by a Royal Commission (National Expenditure Commission) under the Chairmanship of Mr. George Shirtcliffe, 0.8. E. Sufficient time has not yet elapsed to reveal the full effect of the recommendations of the latter Commission, but since the recommendations of the former Committee have been in operation the following reductions in staff and savings in salary, &c, have been effected by retrenchment, non-filling of vacancies on retirement of officers, and curtailment of services. These savings are exclusive of the salary cuts under the Finance Act, 1931, and the National Expenditure Adjustment Act, 1932. It will be noted that they are cumulative in effect, and represent, in respect of the Departments coming under the provisions of the Public Service Act, an estimated annual saving of just over £384,000, made up as follows :—

Economies in the Public Service effected during Period 1st April, 1930, to 30th June, 1932.

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Saving, Number of Employees. 1930-31. 1931-32. 1932-33. j Annual. I ! £ £ £ £ Staff under the control of the Public Service Commissioner— Employees who have left or are leaving the Service without replacement — Permanent employees .. .. .. 547 | 17,772 86,576 156,861 163,174 Temporary employees (not including casual 879 I 6,838 69,969 178,735 181,435 employees — e.g., Public Works Department employees retrenched owing to curtailment of railway works, &c.) 1,426 24,610 156,545 335,596 344,609 Savings additional to above (due to staff adjust- . . 6,351 37.148 42,875 39,556 ments, reductions in salaries (excluding the Finance Act, 1931, and National Expenditure Adjustment Act, 1932), reduction and cancelling of allowances, &c.) Total savings, staff under Public Service .. 30,961 193,693 378,471 384,165 Commissioner control

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Summarized, the recommendations in the National Expenditure Commission's reports were calculated to effect an aggregate saving of the burden on Consolidated Fund of approximately £.1,200,000. This amount includes certain minor proposals for increases in revenue per medium of increased charges for services, and increased duty, both estimated to total £17,000. The balance, it was proposed, would be effected by reductions in permanent charges and vote expenditure. The Commission's proposals in the main concerned matters of policy, a change of which in many cases would not be practicable. An analysis of the proposed savings showed that the possible administrative economies, according to the Commission's reports, are relatively small —for example, in the Commission's interim, report, out of a total of estimated possible savings of £358,000 only £25,000, representing suggested economies in the Legislative Vote, affect administrative items. The balance wholly relates to matters of policy, including such items as University bursaries, maternity allowances, contributions to Singapore Base, and reduction of cruisers, &c. In" fact, so far as that portion of the Service coming under the jurisdiction of the Public Service Act is_ concerned, not a single item in the whole of the interim proposals of the Commission can be said to refer to administrative costs. Taking the final report, if the proposals affecting policy in regard to subsidies to hospitals and charitable-aid institutions and. local authorities (£310,200), grants to Cook Islands (£7,370), contributions to Phuket nurses (£10,000), and subsidies paid through the Department of Agriculture in connection with fertilizers, &c. (£270,000), are deducted from the suggested total of estimated savings, there remains only just over £200,000 spread over all Departments, including those not under the Public Service Act, as the amount which in the opinion of the Commission can be saved by administrative economies. Many of the proposed savings making up this £200,000 also concern matters of policy which are of questionable practicability ; for example, the closing of certain Stamps and Land and Deeds offices (estimated saving £6,000), abolition of Trade Representatives in Australia and Toronto (£7,300), school hygiene (£2,000), dental hygiene (£12,000), reduction in technical staff in Lands and Survey Department (£10,000), closing of land offices (£4,200), as the Commission suggests. In the light of the Commission's reports, which can only be regarded as a distinct compliment to the efficiency of the administration of the Public Service, it is satisfactory to note that the annual savings of £384,000 referred to above as having been already effected considerably exceed the amount suggested by the Commission, and it is a practical indication that departmental controlling officers are keenly appreciative of the fact that it is only by the strictest regard for economy and efficiency that the present position can be faced. Salaries and Salary Cuts. The savings in salaries and wages as the result of the cuts under the "finance Act, 1931, and the National Expenditure Adjustment Act, 1932, in respect of the permanent staffs of the various Departments under the Public Service Act are summarized, in the following table : — Savings effected by Reductions in Salaries. £ First salary cut (Finance Act 1931, No. 1) .. .. .. .. 246,690 Second salary cut (National Expenditure Adjustment Act, 1932) .. 185,710 Total (in respect of stafi under Public Service Commissioner control) £432,400 In addition to this reduction of £432,400 there is a further estimated saving of £149,912 in respect of temporary employees (excluding Public Works' casuals). The total annual savings due to staff economies and reductions in salary in respect of that portion of the Service under the Public Service Act run into approximately £966,500. Just over £500,000 has been due to cuts in salaries.

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The following table, showing the alterations in the salary scales since the Public Service Act came into operation in 1913, illustrates the effect of the recent salary adjustments on the present classification of officers. The table shows the cost-of-living increments granted in 1919 and 1921 to meet the increased cost of living at that time, and also the reductions that were made in 1922. It will be noted from the table that the recent reductions under the Finance Act, 1931, and the National Expenditure Adjustment Act, 1932, have had the effect of bringing the salary scales to a substantially lower level than they were in 1919, and in respect of the higher grades to a standard even lower than in 1913.

Clerical Division.

The foregoing scale is that relating to the Clerical Division. The Professional Division scale is very little dissimilar, hence it may reasonably be taken that the scale is fairly illustrative of the salaries throughout the Public Service. It is interesting to note further from the following table the distribution of the staff over the scales. In the Professional Division the incidence is practically identical, and the General Division would show an even greater proportion of lowergrade officers. From the figures it will be observed that by far the greater proportion of officers are in the lower grades, though by virtue of their greater numbers the aggregate of their salaries comprises the great bulk of the salaries of public servants.

Distribution of Officers, Clerical Division.

Before the last salary cuts were imposed the percentage-distribution of salaries throughout the whole of the Public Service was as follows : — Salary, Percentage of Total per Annum. employed. Over £1,000 .. .. .. . • •• •• 0-34 £800-£l,ooo .. .. •■ •■ .• ■• 0-77 £601-£ BOO .. .. .. .. •• •• ■• 3-58 £501-£6OO .. .. .. .. •• ■• ■ • 3-81 £301-£5OO 29-80 £300 and under .. .. .. .. .. ..61-70 100-00 Note. All of the above salaries have since been reduced under the Finance Act, 1931, and the National Expenditure Adjustment Act, 1932, i.e. — Per Cent, Under the Finance Act, 1931 .. .. .. .. . . 10 Under the National Expenditure Adjustment Act, 1932 — Up to £225 .. .. .. .. •■ .-5 £225-£720 .. .. .. .. •• -.10 Over £720 .. .. .. ■■ •• ~ 12| From these tables can be seen the extreme difficulty of reconciling the " demands of fiscal necessity" with the "desires of social expediency" in bringing down any general proposals for reductions of salaries.

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1913, 1919, 1921, 1922, 1922, 1924, 1931, 1932, Class. Maximum, j Maximum. ; Maximum. Maximum. Maximum. Maximum. Maximum. Maximum. . ££££££££ VII .. .. 220 270 320 305 295 295 265 239 VI .. 260 300 350 330 320 335 301 271 V .. .. 315 350 400 380 370 380 342 308 IV .. .. 370 400 450 430 420 425 382 344 III .. .. 425 450 500 480 470 470 423 381 II .. 475 500 550 525 515 515 463 417 I .. .. 600 600 650 625 615 615 553 498 C, Special .. 750 800 775 765 765 688 619

VII. VI. V. IV. III. II. I. C, Special. I i j Number of officers .. 2,245 475 265 221 153 76 97 70 Aggregate salaries £ 425,909 128,595 81,012 75,556 57,396 31,399 46,222 40,670 I

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The immediate effect of the two salary cuts and reductions in permanent staff since 31st March, 1931 (allowing for scale increments, promotions, &c), will be seen from the following table, which shows the classification of each group of officers (excluding the Administrative Division) after the cuts have been made, as compared with the total salaries for the year ended the 31st March, 1931 (i.e., before the cuts were imposed) : —

Staff Statistics. The statistics shown as Table 111 in the appendix hereto reveal that there has been a net decrease of 314 permanent officers as at the 3.lst March last as compared with the position at the end of the previous year. It will be seen from the table that in nearly all .Departments there has been a curtailing of staffs. In some Departments this has been possible through the curtailment of services, but in a great number of Departments the depression has considerably increased the amount of work. In certain Departments the full extent of the economies effected is obscured by the fact that fresh appointments have been made in some particular branch—for example, in the Health Department the services of 49 officers were dispensed with, but during the year 21 new dental trainees were added to the establishment, thus reducing the net reduction to 28. Industries and Commerce, Tourist, and Publicity Department shows an increase of 56, but here again the increase is nominal only, a corresponding reduction being shown under Internal Affairs, from which Department the staff of the Statistician's Office was transferred. Similarly, a nominal increase in the Justice Department is compensated for by a corresponding reduction through the transfer of the Registrar - General's Office from Internal Affairs to Justice. Land and Income Tax has shown a net increase of 15 officers ; there have been 19 additions to staff and 4 retirements. This increase has been necessitated through extra work incidental to the recent taxation proposals being thrown upon the Department. The total decrease at the end of the year in the classified lists of all Departments under the Commissioner's control has been 671, as against the total increases during the year of 357. In regard to the staffing of State Departments it must be borne in mind that, contrary to the general experience in private undertakings, the depression has in a great many cases increased the volume of work, accentuated the difficulties, and ushered in many new problems which Government has been obliged to deal with. Where it has been possible to carry on with a skeleton staff, or to arrange for a particular work to be carried on by a merger with another Department, this has been

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Class (excluding Administrative Total Salaries, Total Salaries after Total Salaries after Annual Savings as Division, and Native-school 31st March, 1931. First Cut. Second Cut compared with Teachers). ' 31st March, 1931. Professional— £ £ £ £ A •• ■• ••■ I 150,915 127,262 114,004 36,911 B ■• •■ •■ 74,010 62,212 56,234 17,776 c •■ •■ •• 62,620 52,411 47,279 15,341 D ■• •• ■• 40,020 35,001 31,897 8 123 E .. .. .. 13,050 13,842 13,069 F . •• •• -• I 4,410 2,713 2,949 1,461 Clerical— s P ec ial •■ ■ .. 55,960 45,036 40,670 15,290 I •• •• 57,530 51,070 46,222 11,308 11 •• •• 42,295 34,866 31,399 10,896 HI .. .. 73,805 63,684 57,396 16,409 IV ■■ •• 100,075 83,763 75,556 24,519 v •• •■ 96,675 89,694 81,012 15,663 VI •• ■ ■ 164,875 142,524 128,595 36,280 vn ■• ■■ 445,965 427,292 425,909 20,056 General— I (£320 and over) .. 319,394 263,195 238,289 81105 II (£232-£319) .. 392,298 342,488 316,100 76 198 III (£191-£231) .. 115,210 100,884 97,438 17 772 IV (£190 and under) .. 84,437 70,915 68,506 15,931 Educational .. .. 12,215 11,226 10,428 1,787 Totals .. 2,305,760 2,020,085 1,882,964 422,826

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done ; for example, due to the change in immigration policy, and the consequent curtailment of activities of the Immigration Department, this Department has been merged with the Labour Department. As a result of this, a number of the staff have been dispensed with, and other officers have been made available to cope with the largely increased work in connection with the unemployment schemes. In this connection also it is desired to express appreciation of the helpful co-operation of the Post and Telegraph Department and the Railways Department, which have made available officers when required in connection with this work. By the free interchange of officers from Departments where there has been a shrinkage of work to those in which there has been an increase, it has been possible to carry on throughout the year without appointing a single cadet, and without filling a large number of vacancies that have arisen through retirements in the ordinary course of events. This state of affairs cannot be maintained indefinitely. There is a marginal point beyond which savings are procured at the expense of efficiency. The holdingup of recruitments to the Service through the normal medium of cadetships, though it has unfortunately been rendered essential through the need for economy, is recognized by all who are experienced in affairs of public administration to have serious repercussions, both socially and administratively. It is a matter of no small concern to see the door to their careers closed to a large number of lads who have qualified by examination for entrance to the Public Service. From a departmental point of view also it is desirable, in order to maintain continuity and a proper balance of staff, that there should be a reasonable proportion of juniors coming on and undergoing training for the normal replacement of those who retire through effluxion of time. Legislation affecting the Public Service. National Expenditure Adjustment Act, 1932. This Act made provision for the further adjustment of public expenditure by reducing the rates of salary,. wages, and emoluments of all State employees as from the Ist April, 1932, by an amount varying from 5 per cent, to 12|r per cent, of the rate at which such employees were paid on the 31st March, 1932. The reductions were on the following basis : — (a) Where the rate of salary did not exceed £225 or its equivalent, 5 per cent. (6) Where the rate of salary exceeded £225 but did not exceed £720 or its equivalent, 10 per cent, (c) Where the rate exceeded £720 or its equivalent, 12-| per cent. Provision was also made that all scales of salaries and. increments should be correspondingly reduced. The reductions were applied to all persons employed in the Cook Islands Public Service, but officers of the Samoan Public Service were exempted from the provisions of the Act for a period of three months as from the Ist April, 1932, and subsequently for a further period of three months as from the Ist July, 1932. The Act also provided that the Governor-General might from time to time make all such regulations as might be deemed necessary for the purpose of carrying the Act into effect, and, in particular, that any such regulations might make provision for the adjustment of anomalies or for the relief of cases of hardship. Regulations were made and published in the New Zealand Gazette No. 40, of the 9th June, 1932. These regulations established an " Adjustment Committee," consisting of the following persons : — (a) The President of the Arbitration Court: (b) The Public Service Commissioner : (c) The President of the New Zealand Public Service Association (Incorporated). Applications for relief may be made to the Committee up to and including the 31st July, 1932.

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The regulations further provide that if in any case the Adjustment Committee is satisfied that an anomaly or hardship exists it shall consider the special circumstances of the case and the departmental report and recommendation, and may make such decision as in the circumstances it thinks fit, just, and equitable. Finance Act, 1932. Section 59 contains special power for the dismissal of disloyal officers of any branch of the Public Service. Finance Act, 1931 (No. 4). Section 42 extends indefinitely the provisions of section 14 of the Finance Act, 1931, relating to the superannuation rights of persons compulsorily retired from Government and other services. Amendments to the General Regulations. During the year the principal amendments were as follows : Eegulations 8 109 111, 117, 197, 201, 209, 213, and 214: Reducing the salaries and rates of payments in accordance with the provisions of the National Expenditure Adjustment Act, 1932. Board op Appeal. The following is a summary of appeals dealt with during the period Ist April 1931, to 31st March, 1932 :—

Commonwealth Fund Service Fellowship. Since 1929 officers of the New Zealand Public Service have been afforded the opportunity of applying for a Commonwealth Fund Service Fellowship. These Fellowships are tenable at American Universities and are for a minimum period of fifteen months and a maximum period of twenty-four months. The following summary report of the Committee of Award has recently been received : Summary Report. The Committee think that it may be of some interest and guidance to Governors, Heads of Departments, and others concerned in promoting the applications of candidates, and to prospective candidates themselves, to receive the following summary report of the operation of the Commonwealth Service Fellowship scheme in the light of the experience gained since its inception four years ago. First, in regard to the appointments to Service Fellowships made in 1932. Sixty-three applications were received from officers employed under the Governments of Queensland, South Australia, Canada, New Zealand, The Union of South Africa, India, Ceylon, Fiji, Kenya, Mauritius, Southern Rhodesia, Tanganyika, and Zanzibar respectively. The subjects of study offered included agriculture, business administration, economics, education, engineering, forestry, geology, medicine, political and social science, and zoology. Three Fellows were appointed from South Africa, India,' and Ceylon. In addition there are six Fellows already holding Service Fellowships in the United States from New Zealand, South Africa, India, Southern Rhodesia, and Palestine, who are studying agriculture, economics, education, and engineering. The Committee have received uniformly satisfactory reports on these Fellows from the Universities and other institutions to which they are attached, and the officers of the fund in New York have expressed the view that the high intellectual and personal standard established by the Commonwealth Fund Fellows in other categories has been well maintained by their Service colleagues. At the same time reports received from the Fellows themselves show that their expectations as to the value of a period of study and travel in the United States have been fulfilled, and express keen appreciation of the care and trouble taken on their behalf both by the representatives of the fund and by the University or other authorities. There seems good reason to hope that the Governments which have seconded officers to undertake the tenure of these Fellowships will gain advantage from the scheme in the enhanced efficiency of those officers on their return.

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Decision recorded. Classification. app0^™ ment> Dismissal. Total. ! I I Allowed .. .. .. Not allowed .. .. .. .. 1 26 1 28 Do not lie ........ 3 4 q Withdrawn ...... .. 9 g 4 39 1 44 __ ■ '

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Last year a notification was received from the Committee of Award that it had not been possible to appoint to a Service Fellowship any of the officers whose applications had been received from New Zealand, but that Mr. C. W. 0. Turner, B.Sc, of the Public Works Department, had been placed third on the reserve list. Officers are to be given a further opportunity this year of applying for a Fellowship for 1933. Departmental Conferences of Officers. The following conferences of departmental officers were held during the year :— Department. Name of Conference. Education .. Inspectors :to discuss departmental matters. Public Trust . . First Regional Conference of Co-operative Rural Intermediate Credit Associations in the Waikato and South Auckland Districts. Departmental Officers on Duty Abroad. During the year the following officers proceeded abroad for the purposes stated : — Craig, Dr. G., Comptroller, Customs Department: To attend. Trade Conference at Honolulu ; also to attend Empire Economic Conference at Ottawa. Kidson, Dr. E., Director of Meteorological Office, Scientific and Industrial Research Department : To attend centenary meeting of British Association of Meteorologists in England. Entrican, A. R., Engineer in Forest Products, State Forest Service, Wellington: To accompany to England a representative of the Southland beech sawmillers for the purpose of making inquiries regarding the supply and marketing of New Zealand beech in Britain. Park, A. D., Secretary to the Treasury, Wellington : To attend Empire Economic Conference at Ottawa. Mr. Park later proceeded to London. Campbell, Dr. R. M., Private Secretary to Minister, Wellington : To accompany the New Zealand delegation to Empire Economic Conference at Ottawa. Departmental Officers on Duty with other Administrations. The following officers of the New Zealand Public Service are on duty with the Administrations named : —

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Administration. Name. Department from which loaned. High Commissioner's Office .. Wright, W. .. .. Agriculture. Taylor, F. H Steere, H. C. .. .. Audit. Lawrence, F. W. . . Customs. Mitchell, T. Sandford, F. T. .. Immigration. Jervis, D. M. .. .. Internal Affairs. Mitchinson, Miss E. .. „ Wilson, Miss P. C. Wright, N. L. .. .. Scientific and Industrial Research. Samoa .. .. .. Heatherington, J. .. Agriculture. Gair, C. J. M. .. .. Audit. Lowrie, W. G. .. .. Customs. McKay, C. G. E. . . External Affairs. Partridge, L. B... .. Health. Ward, J. D. tStyles, E. .. .. Immigration. Turnbull, A. C. .. .. Internal Affairs. Millar, T. H. .. ' McBride, W. .. . . Land and Deeds. White, A. R. .. . . Lands and Survey. Lynch, R. J. .. . . Mental Hospitals. Pound, J. G. W. T. . . Prisons. Gratton, F. J. H. .. Public Trust. Lofley, W. G. .. .. Public Works. I Sapsford, H. B. Wadsworth, J. .. . . Scientific and Industrial Research. Brewer, J. V. .. .. State Forests. Wyman, T. S. .. Cook Islands .. . . Nottage, I. L. .. .. Agriculture. Wright, J. B. .. .. j Cook Islands. Cook, L. M. .. .. I „ McMahon-Box, J. P. .. Customs. j Luckham, A. A. . . Prisons. Secretariat to League of Nations Chapman, J. H... .. Customs. Fiji . . .. .. Lindsay, Miss G. . . Internal Affairs. Taylor!! J. B. K. .. Public Works.

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Administrative Changes. Since the last report was issued the following changes have taken place in the Administrative Division : — Internal Affairs Department: Mr. P. J. Kelleher retired on the 29th April, 1932. He was succeeded by Mr. M. Fraser, 0.8. E., formerly Government Statistician. Labour Department : Mr. W. Newton retired on the 17th November, 1932. Immigration Department : Mr. H. D. Thomson retired on the 30th September, 1932. Land and Deeds and Stamp Duties Departments : Mr. C. E. Nalder retired on the 31st March, 1932. He was succeeded by Mr. J. Murray, formerly Assistant Secretary for Land and Deeds and Deputy Commissioner of Stamp Duties. Land and Income Tax Department: Mr. E. J. R. Cumming retired on the 31st August, 1932. He was succeeded by Mr. C. E. J. Dowland. Public Works Department : Mr. F. W. Furkert, C.M.G., retired on 31st October, 1932, and was succeeded by Mr. C. J. McKenzie. Treasury Department: Mr. B. C. Ashwin was appointed to the position of Second Assistant Secretary, Administrative Division, on the 22nd December, 1931. Unemployment Board : Mr. G. C. Godfrey was appointed Commissioner of Unemployment as from Ist April, 1932. Suggestions for Improvement. Public Service Regulation 17 invites officers to submit, through the Permanent Head of their Department, suggestions having for their object improvements in the methods of work which will tend to increased efficiency and economy. As stated in previous reports, every encouragement is given by the Commissioner to suggestions likely to improve the organization or efficiency of the Service, and it is the practice to make a special reward to any officer bringing forward a suggestion of merit. Although some suggestions put forward are not regarded as practicable, the action prompting officers in these cases is worthy of commendation, and is regarded as an evidence of the zeal of the officer. Several suggestions were made during the year, and although none was considered of sufficient novelty and merit to warrant monetary recognition, the following are deserving of mention herein : —■

Offences by Officers. Offences by officers are dealt with as prescribed by sections 12 and 13 of the Public Service Amendment Act, 1927. Minor offences may be dealt with by the head of the Department, but must be reported to the Public Service Commissioner. All the more serious cases are required to be referred to the Commissioner, who may conduct an inquiry himself or delegate his powers to others. In all cases the officer must be specifically charged in writing, and is required to answer the charge in writing. In the case of the more serious charges the officer has a right of appeal to the Public Service Board of Appeal against both the finding of the Commissioner and the penalty inflicted. The principal classes of cases dealt with, and the decisions arrived at, are as follow : — (a) Misappropriations (5) : Forfeited office. (b) Irregularities (3) : Forfeited office (1) ; treated as absent without leave (1) ; transferred (1). (c) Neglect of duty (4) : Keprimanded (1) ; disrated and transferred (1) ; services terminated (1) ; appointment annulled (1). (d) Unsatisfactory conduct (11) : Eeprimanded (5) ; reprimanded and transferred (2) ; reprimanded and salary forfeited (1) ; dismissed (3).

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Name. Department. Suggestion. Menzies, K. .. .. Agriculture .. .. Method of payment of compensation for stock condemned under the Stock Act. Butchers, A. G. .. Education .. .. System of despatch of Correspondence School assignments of work.

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Conclusion. It has been stressed in earlier reports that the expanding cost of Government has been due to the extension of duties that have devolved upon the Service through the necessities of the times. Every fresh piece of legislation involves certain fresh administrative responsibilities, the extent of which is frequently not realized by those who cavil at the cost of the Public Service. The intricate ramifications of the State and the intertwining of its activities throughout the whole social structure make it both difficult and dangerous to effect a sudden cessation of certain services. In many cases loss from a social standpoint would considerably outweigh the immediate pecuniary gain. It is gradually being recognized by all who face the existing facts fairly and squarely in respect of finance and industry that our economic mechanism has lost much of its selfadjusting quality, and that some form of rationalization, regulative control, or planned economy is essential to recovery. In such event this means that, instead of fewer burdens being thrown on Government, the tendency probably will be for its functions to increase unless we are to revert to the suicidal policy of laissez faire. It is again desired to place on record appreciation of the generous measure of support and co-operation accorded by Permanent Heads, and of the loyal manner in which officers throughout the Service have risen to the demands of the abnormal conditions that have been experienced during the year. This maintenance of the best traditions is all the more praiseworthy when it is borne in mind that there is probably no calling the conditions of service of which are so exposed, particularly in times of financial stringency, to unthinking public criticism as the Public Service. To the staff of this office special thanks are due for their unfailing zeal and loyalty. All of which is respectfully submitted for Your Excellency's gracious consideration. P. Verschaffelt, Commissioner. B. L. Dallard, Assistant Commissioner. Office of the Public Service Commissioner, Wellington, 28th February, 1933.

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Table I.—Public Service List, 31/3/32.-General Summary of Classification by Departments

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(excluding Officers in Administrative Division). Saving effected by Number Salaries. Salaries. „ , Reduction Department. of Year ending Year ending T Scale ** der , the Officers. 31/8/32. 31/3/33." Increase. National Expenditure Adjustment Act, 1932. £ £ £ £ Agriculture .. .. .. .. .. 524 168,668 154,895 2,328 16,391 On loan .. .. .. .. 4 On leave .. .. .. .. 2 , 157 46",894 43>17 '983 4^451 Cook Islands .. .. .. .. .. 5 1,359 1;2 80 34 114 • On loan .. .. .. .. 2 Crown Law .. .. .. .. .. 6 3,564 17 '410 Customs .. .. .. .. .. 294 87,921 81,255 1,106 7,979 On loan .. .. .. .. 3 On leave .. .. .. .. X Defence .. .. .. .. .. 31 8,019 7,392 84 729 Education .. .. .. .. .. 267 87,227 80,139 869 8,127 On leave .. .. .. .. 3 External Affairs .. .. .. .. 3 "688 "662 "37 "66 On loan .. .. .. .. 2 Government Insurance .. .. .. .. 99 2 668 Health.. .. .. .. .. .. 410 100,838 94,806 1,893 8'o52 On loan .. .. .. j 2 Immigration .. .. .. .. .. 8 2J86 !! *221 On loan .. .. .. .. 2 Industries and Commerce, Tourist, and Publicity .. 165 41,778 39,296 993 3 598 Internal Affairs .. .. .. .. .. 237 58,422 725 4'579 On loan .. . . .. .. 5 On leave .. .. .. .. 2 Justice .. .. .. .. .. 313 81,076 76,044 2,070 7,452 Labour .. .. .. .. .. 95 26,631 24,481 341 2,536 Land and Deeds .. .. .. .. 125 34,686 32,473 765 3 099 On loan .. .. .. .. 1 Land and Income Tax .. . . .. .. 175 39 .'883 l,'<k)4 3 *509 Lands and Survey .. .. .. .. 587 159,987 149,500 3,605 14,640 On loan .. .. . . .. ] Marine. .. .. .. 168 | ; 52,915 48,795 654 4,875 Mental Hospitals .. .. .. .. 1,089 214,880 202,705 2,003 I 14,308 On loan .. .. .. .. 1 On leave .. .. .. .. 2 •• *• , • \ „ . ■■ •• 49 14,589 13,559 286 1,358 JNational Jrrovident and Friendly Societies .. .. 32 7,803 7,459 328 689 • 75 20,196 18,'822 424 1,886 Native Trust .. .. .. .. .. 30 8,694 8,053 136 811 Pensions 101 23,751 22,686 928 2,140 £ *7- ■ . , 6 :l > 89 ' 1 1,732 17 180 Prime Minister s .. .. .. .. 1 742 649 9 2 Printing and Stationery .. .. .. .. 243 63,338 57,880 *436 6,005 On leave .. .. .. .. 5 Prisons 236 60i493 55^498 ' 444 5,597 On loan .. .. .. .. 2 Public Service Commissioner's .. .. .. 8 3,033 2,736 !! 296 Public Service Superannuation .. .. .. 8 1,678 l'641 "98 140 Public Trust 627 177,205 4,473 16,132 On loan .. .. . „ .. 1 On leave .. " .. .. .. 1 Public Works 709 211,4m . 3*847 20 077 On loan .. .. .. .. 3 On leave .. .. .. .. 2 Scientific and Industrial Research .. .. .. 57 20,263 18,681 337 1969 Stamp Duties .. .. .. .. .. 71 19,638 18,'329 422 l'794 State Advances .. .. .. .. .. 98 22,990 21,878 830 2'030 State Eire Insurance .. .. .. .. 134 34,942 32 975 965 3'105 State Forests .. .. .. .. 107 32,260 29,757 543 3 'll9 On loan .. .. .. .. 1 .. ' On leave .. .. .. .. 1 Transport .. .. .. .. .. 7 2,686 2,466 34 255 Treasury 78 21,240 19,992 603 2,034 Valuation .. .. .. .. .. 78 25,749 23,760 376 2,402 Totals.. .. .. .. 7,513 2,020,085 1,882,964 37,331 179,932 On loan .. .. .. .. .. 30 On leave .. .. .. .. .. 19 Totals, 31/3/32* .. .. 7,513 2,020,085 Totals, 31/3/33* .. .. 7,513 .. 1,882,964 !! Native-school teachers .. .. .. .. 320 61 888 Vacant, 1/4/32 .. .. .. .. .. 13 • Excluding 30 officers on loan and 19 on leave without pay. Note.—Fractions of £1 are not taken into consideration in totals.

H.—l4.

Table II.— Public Service List, 31/3/32.—General Summary of Classification by Classes

12

(excluding Officers in Administrative Division). " : ~ i Saving effected by Reduction . . Number of Total Salaries, Classification Scale ! under National Class (excluding Administrative). Officers. 31/3/32. Salaries, 31/3/33. Increase. ! Expenditure Adjustment ! I Act, 1932. Professional — £ £ £ £ Over scale .. .. • 75 57,575 50,970 .. 6,604 Over scale (on leave) .. .. .. 1 A ... 116 69,687 63,034 315 7,003 B " .. .. .. .. 125 62,212 56,234 24.3 6,248 B (on leave) .. .. • • • ■ 1 C .. .. .. .. •• 122 52,411 47,279 109 5,253 C (on leave) .. • ■ • ■ • • 1 • • • • • • D .. .. .. .. .. 99 35,001 31,897 396 3,544 D (on leave) .. .. • • • • 1 E .. .. .. 55 13,842 13,069 389 1,321 F " .. .. .. .. 19 2,713 2,949 371 155 Clerical — Special .. .. .. •• 70 45,036 40,670 149 4,532 Special (on loan) .. .. .. • • 1 I . .. .. .. 97 51,070 46,222 259 5,135 XI .. .. .. .. .. 76 34,866 31,399 20 3,488 II (on loan) .. . . . • ■ • 1 HI .. .. .. .. .. 153 63,684 57,396 81 6,377 III (on leave) .. .. .. ■ ■ 1 IV .. • • •• •• 221 83,763 75,556 170 8,395 IV (on loan) .. .. .. .. 5 IV (on leave) .. .. .. • • 1 V .. .. .. .. 265 89,694 81,012 287 j 9,001 V (on loan) .. .. .. .. 1 VI . .. .. ..475 142,524 128,595 324 14,288 VII(£222/15/0-£238/19/0) .. .. 870 220,455 204,452 3,738 22,716 VII (on loan) .. .. .. .. 6 VII (on leave) .. .. .. .. 1 VII (£179/ll/0-£213/15/0) .. .. 648 123,619 128,322 10,884 6,753 VII (on Joan) .. .. .. .. 6 VII (£68/8/0-£162/9/0) 727 83,218 93,135 14,077 4,901 VII (on loan) .. .. .. • • 1 VII (on leave) .. .. ■ • • • 1 G ° nera i (£260 and over) .. .. .. 745 263,195 238,289 1,413 26,476 I (on loan) .. . • ■■ •. 4 I (on leave) .. .. .. .. i 1 II (£198~£259) .. .. .. 1,418 342,488 316,100 1,236 28,034 II (on loan) .. .. .. .. 3 II (on leave) .. .. .. •. 5 III (£163-£197) .. .. .. .. 527 100,884 97,438 1,598 5,128 III (on loan) .. .. .. .. 2 III (on leave) .. .. .. .. 1 IV (£162 and under) .. .. .. 566 70,915 68,506 1,136 3,605 IV (on leave) .. .. ■ • • • 1 ■ • • • .. Educational — I (£260 and over) 1 10 3,658 3,321 28 369 II (£198-£259) .. .. -■ i 19 4,779 4,406 47 453 II (on leave) .. .. . . .. 3 III (£163-£197) .. .. ' 14 2,632 2,539 38 133 IV (£162 and under) ..... 1 157 162 12 8 Totals .. .. .. 7,513 2,020,085 1,882,964 37,331 179,932 On loan .. .. ■. • • • • 30 On leave .. .. .. - • • • 19 Totals, 31/3/32* .. .. 7,513 2,020,085 Totals, 31/3/33* .. .. 7,513 .. 1,882,964 Native-scliool teachers.. . . . - •. 320 61,888 Vacant, 1/4/32 .. .. .. .. 13 ♦ Excluding 30 officers on loan and 19 on leave without pay. Note.—Fractions of £1 are not taken into consideration in totals.

13

H.—14.

Table III.—Showing Alterations in Staffs and Salaries of Departments between Classified List for 1931-32 and 31st March, 1932.

3—H. 14

Classified List, 1931-32. Increase. Decrease. qj By Transfer from other By New Entrants. A Sn t0 from Onda r 3sTfl e cd tS po3itions. Appointments from Outside the Temporary Employees . By Transfer to By Retkement At 31st March, 1932. Salary on Service. made Permanent. Tntoi īn^DQ ao r> x> other nn\ on r\9\ J3y Dismissal Decrease. Promotion, &c. ; ; Total Increase. By Reduction Departments or Bv Death Superannua- Bv Resignation (including Cases Total Decrease. Department. 1 Total (within (2) (3) (4) (5) (6) (7) in Salary. to Unclassified By Death ' where Services t t tq Classified Department). To fill As Additions To nil As Additions To fill As Additions Positions. or Pension dispensed with). Department. q Salaries. Vacancies. ! to Staff. Vacancies to Staff. Vacancies. to Staff. i i I I 1 11 s I I I 1 i l f! 1 I I i I I 1 i i i i i il i 1 ī i t 11 i li I ill s g < * _ I | ē | j g i g I g I g i J_ g i 3 g_ _g g | i, i I i I | I i 1° H |1 £ £ £ £ £'£££££ £ £ £ £ £ £ £ Agriculture .. .. 549 I r i om " " 1 85 f 351 .. .. 3 922 4 1,602 13 4,752 4 1,183 3 927 27 9,387 -25 - 9,036 524 168,668 Agriculture. ■■ ■■ 15 ® 6 108 5 1,210 5 1,318 3 1,453 1 121 .. .. 4 1,575 + 1 - 256 157 46,894 Audit. Cook Islands .. 5 1,359 5 35g Cook Islands . Crown Law .. .. o 3,5o4 .. .. .. .... .... .. .. .. .... .. .. . a q\(\a p, T o W Customs .. .. 302 90,697 1 18 18 "l "n "2 675 '5 1,867 " " 'i *225 ~8 -% - 2,770 294 87>1 Customs. Uetence .. .. 35 8,8bJ .. .. .. .. .. .. .. .. .. .. .. .. _ 1 265 .. .. .. .. I 166 2 418 4 850 — 4 — 850 31 8 019 Defence Education .. .. 292 96 ' 924 1 45 .. • • ■ • •• 2 895 5 1,381 .. 7 2,322 1 126 3 639 .. .. 15 6,826 6 2,016 8 2,412 32 12,019 -25 - 9,697 267 Education. External Affairs .. 2 423 •• J 265 1 265 + 1 + 265 3 688 External Affairs. Government Insurance 103 29,434 5 112 J 310 3 423 .. .. 2 351 1 301 3 1,449 1 207 . . .. 7 2,308 - 4 - 1,885 99 27,549 Government Insurance. Health .. .. 438 109,315 37 3,444 2 171 21 1,417 23 5,032 4 36 6 1,138 1 301 16 6,062 19 3,738 9 2,232 51 13,509 —28 — 8,476 410 100,838 Health Immigration. .. 9 2,673 j 265 .. _ 1 2 65 - 1 - 265 8 2,407 Immigration. Industries and Com- 109 27,o22 3 54 64 15,808* j 64 15,862 1 36 .. .. 1 121 4 832 1 265 2 351 8 1,606 +56 +14,256* 165 41,778 Industries and Commerce Tourist, and m Touri and Publicity Publicity. Internal Affairs .. 306 79,494 3 72 2 «12 • •• •• 2 684 4 120 112 28,057* 2 490 13 3,550 .. .. 1 216 128 32,434 -126 -31,750* 180 47,744 Internal Affairs. Internal Affairs (Reliev- 58 11,259 1 18 1 202 3 328 .. .. 2 171 6 720 .. .. 4 567 .. .. 1 202 2 531 .. .. 7 1,300 - 1 - 580 57 10,678 Internal Affairs (Relievmg btan) • Justice •• •• 2 ™ or'mo 3 67 49 12 ' 634 * 1 103 50 12,825 1 243 6 1,642 7 1,885 +43 +10,939* 313 81,076 Justice. Labour .. .. 9b 2b,J19 x 2g8 : 288 - 1 - 288 95 26,631 Labour. Land and Deeds ... 128 35,622 2 765 1 171 .. .. 3 936 - 3 - 936 125 34,686 ! Land and Deeds. Land and Income Tax 160 39,136 15 274 1 03 19 1,804 20 2,182 2 36 1 103 .. .. 2 765 2 531 .. .. 5 1,435 +15 + 747 175 39,883 Land and Income Tax. Lands and Survey .. 613 168,610 15 522 6 1,476 .. .. 1 121 7 2,119 2 77 8 2,524 .. .. 18 6,700 5 1,026 2 414 33 10,742 -26 - 8,623 587 159,987 Lands and Survey. Marine •• 192 60,420 72 2,043 1 198 1 2,241 5 166 17 7,352 2 364 6 1,863 25 9,746 —24 — 7,505 168 52,915 Marine Mental Hospitals ..1,093 217,523 243 2,692 2 319 132 16,032 3 459 137 19,504 3 49 .. .. 3 1,359 9 2,814 99 13,824 30 141 22,147 - 4 - 2 ;643 1,089 214,880 Mental Hospitals. m ? S , T , -1 •• 1°. 225 1 85 2 328 2 999 1 243 3 1,242 - 1 - 913 49 14,589 Mines. National Provident and 34 8,487 1 18 1 85 1 103 2 648 1 139 .. .. 3 787 - 2 - 684 32 7,803 National Provident and Friendly Societies j Friendlv Societies Native .. .. 72 20,263 1 18 2 310 1 139 .. .. 3 256 6 724 .. .. 1 85 .. .. 1 301 .. .. 1 405 3 792 + 3 - 67 75 20,196 Native. Native Trust .. 31 8,761 1 18 18 1 85 1 1 85 - 1 - 67 30 8,694 Native Trust. Pensions .. .. 104 24 >™> 5 135 2 351 .. .. 1 85 3 571 .. .. 1 265 .. .. 3 1,030 2! 274 .. .. 6 1,570 - 3 - 999 101 23,751 Pensions. P 0110 * •• 1,894 ; 6 j g94 Police Prime Minister s .. L 74Z .. .. .. .. .. .. .. .. .. .. .. .. .. _ _ .. j Prime Minister's Printing and Stationery 293 76,548 11 231 1 85 1 316 23 1 263 1 147 41 11,694 7 1,122 1 274 51 13',525 -50 243 63,338 Printing and Stationery. Prisons .. .. 248 63 > 432 10 135 1 202 1 337 .. .. 1 342 .. .. 4 1,012 3 616 5 1,305 13 3,276 -12 — 2,938 236 60,493 Prisons. Public Service Commis- 8 3,033 8 PuWic Service Commissioner s sioner's Public Service Super- 8 1,678 8 1678 Pub!ic Service g _ annuation annuation. Public Trust.. .. 640 180,477 78 1,741 2 441 1 342 .. .. 3 2,524 3 112 3 1,417 1 720 3 1,206 8 1,899 1 441 16 5,796 —13 — 3,271 627 177,205 Public Trust. Public Works .. 757 224,070 111 1,760 .. .. 1 207 1 1,967 9 312 4 727 2 661 29 9,839 6 1,107 8 1,891 49 14,539 -48 -12,572 709 211,498 Public Works Scientific and Industrial 54 19,147 3 54 .. .. 4 1,305 4 1,359 1 243 1 243 + 3 + 1,116 57 20,263 Scientific and Industrial Research .. Research Stamp Duties .. 73 20,290 1 18 . 18 1 463 1 207 .. .. 2 670 - 2 - 652 71 19,638 Stamp Duties. State Advances .. 96 22 > 94 J; 4 Z? ' * " 265 2 171 3 513 1 463 1 463 + 2 + 49 98 22,990 State Advances. State Fire Insurance .. 137 35 >° 98 4 81 1 103 1 184 4 940 .. .. 4 940 - 3 - 755 134 34,942 State Fire Insurance. State Forests .. 119 35,221 3 414 1 207 8 2,340 12 2,961 -12 - 2,961 107 32,260 State Forests. Transport .. .. 7 2,686 .. .. .. .. .. .. .. .. .. .. .. .. .. .. ># # _ 7 2 686 Transport. Treasury .. .. [ 84 23,548 7 184 1 189 .. .. 2 171 3 544 .. .. 1 688 .. .. 6 1,755 2 409 .. .. 9 2,853 — 6 — 2,308 78 2l'240 Treasury. Valuation .. .. j 83 27,279 .. .. j 1 103 .. j 3 1,237 1 189 .. .. 5 1,530 — 5 — 1,530 78 25,749 Valuation. Totals .. 7,827 2,121,214 651 14,140 144 34,511 11 2,470 147 18,323 54 5,593 1 342 .. .. 357 75,380 36 1,123 156 38,875 23 J 7,915 230 79,271 180 31,315 82 18,007 671 176,509 —314 —101,128 7,513 2,020,085 Totals. • Alteration due to the transfer Jrom Internal Affairs Department of the Census and Statistics Office to Industries and Commerce, Tourist, and Publicity Department and of the Office of the Registrar-General and the Electoral Office to the Justice DepartmentNote.—This return does not include administrative officers, native-school teachers, and officers on loan or on leave without pay. Fractions of £1 are not taken into account in totals.

H.—l4.

Table IV. —Temporary Employees, other than Workmen, etc., as at 1st April, 1932.

Approximate Cost of Paper,—Preparation, not given; printing (615 copies), £21.

By Authority : W. A. G. Skinnbb, Government Printer, Wellington.—l 933.

Price 6d,]

4—H. 14.

15

— 5 ! 1 if I III SI 1! I I II . . Agriculture .. .. .. .. 6 3 .. 23 12 54 26 3 .. .. 18 Audit .. .. .. .. 4 1 Cook Islands .. .. .. 1 j 2 Crown Law .. .. .. 2 .. Customs .. .. .. .. 1 .. .. 8 .. ! .. .. ., i j .. J .. Defence .. .. .. .. 15 .. .. 3 5 .. .. .. I .. .. I .. .. ! 27 ! 24 Education .. .. .. .. 3 2 14 17 14 .. j .. .. J .. ........ 50 Government Insurance .. .. .. 1 .... 10 16 ] .. j .. .. | .. .... .... Health .. .. .. .. .. 12 14 14 4 .. j .. 4 j 7 .... 9 .. 37 Immigration .. .. .. .. .. I .. .. 1 .. .. | .. .. i .. .. ...... Industries and Commerce, Tourist and Publicity 4 .. 1 39 5 ! .. i .. 3 3 ........ 13 Internal Affairs .. .. .. .. 9 12 ] 40 8 .. I .. ., 1 > ; .. 21 Justice .. .. .. .. .. 4 .... 22 2 .. j i .. 3 Labour .. .. .. .. 4 .. .. | 23 1 .. i .. .. 1 .. .. Land and Deeds .. .. .. 2 .. .. 18 3 .. 13 .. .. I j .. Land and Income Tax .. .. 5 20 .. j .. . . j Lands and Survey .. .. .. 5 6 .. 58 .. 7 .. .. 8 12 6 Marine .. .'. .. .. .. 3 .... 8 .. .. j .. .. | 1 .. ...... 3 Mental Hospitals .. .. 10 4 .. j .. 3 .. .. ..51 5 Mines .. .. .. .. .. 3 .. .. 4 3 ■ 2 .. 2 .. : .. 2 National Provident and Friendly Societies I 3 14 .. ! .. .. j !..!.. Native .. .. .. .. .. 12 .. 1 19 2 | .. j .. .. • • I • • 10 Native Trust .. .. .. .. 1 .. .. 4 1 ..j.. ..I Pensions .. .. .. .. 15 .. .. 22 17 Printing and Stationery .. .. 3 .. 1 .. .. .. .. Prisons .. .. .. .. 6 .. .. 5 j .. .. 1 Public Service Superannuation .. .. 2 .. I .. ...!,. Public Trust .. .. .. .. 31 3 .. 153 2 ..[.... 2 j .. 6 Public Works .. .. .. .. 27 5 .. 68 5 28 j 10 62 3 ,. 57 .. 44 95 Scientific and Industrial Research .. 2 .. .. 3 .. .. .. .... .. 1 .. ._:41 Stamp Duties .. .. .. 8 2 .. j .. .. State Advances .. .. .. .. 12 12 .. 23 7 ..... .. j .. .. [ i .. State Fire Insurance .. .. .. 2 .. .. 33 20 .. .. .. j .. .. I State Forests .. .. .. .. 6 .. .. 12 1 3 .. .. 10 Transport .. .. .. .. .. 1 .. I .. .. j .. .. I Treasury .. .. .. .. 1 1 .. 7 10 .. .. .. ! .. .. j Valuation .. .. .. .. 3 1 .. 20 j 3 .. \ 1 j | 2 Totals .. .. .. .. 190 36 25 690 184 39 24 62 82 26 63 14 74 349 i j I