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the term " Director of Organization," we have already admitted our ignorance; We need hardly say that the high-sounding titles of " Deputy Director " and " Assistant Director " should be abolished. The suspicion is that a very fine title like that commands, even sympathetically, more remuneration than a " common or garden " variety of Chief Clerk. The, term " Chief Paymaster " certainly seems more appropriate than " Director of Financial Services." It is an important position, and will be more so if the War Expenses Division is added to it. /The present Director is a good, zealous man who has gained useful experience, but he does not carry guns enough for the new position, for which, possibly, a man. will be found somewhere in the Forces sufficiently experienced and qualified. Perhaps an exchange between the present Director and another could be arranged. The status of the Accounting Department should be improved and sustained. (d.) The present Director of Equipment and Ordnance Stores will be the righthand man of the new Administrator, and his status and emolument should be liberally increased. We found him to be a sound and capable man, for whom responsibility had no terrors. He had not only a thorough mastery of the principles and details of his work, but was shrewd in his estimate of the value of his subordinates. After a long and vigorous cross-examination we were so impressed with his knowledge of service conditions, especially the administrative side, that we invited him to send us any suggestions that might occur to him as the result of his examination ; and we feel that we cannot do better than quote what we regard as a very able opinion on the points bearing on this report. On taking charge of his branch he drew up, for the conduct of his subordinates, regulations, No. 12 of which (probably his text for his suggestions) reads as follows : — Promotions.- A nominal roll will be kept at the Headquarters of the Department, and all promotions will be made and regulated therefrom in' accordance with the, establishments laid down. Seniority alone affords no claim for promotion ; the sne- • cessful working of a section, due to the initiative of the officer responsible, is the essential qualification. He says, — The present staff may be divided into three classes, namely,— («.) Those whose qualifications are undoubted ; (b.) Colourless men, lacking energy and initiative, shirking responsibility, always looking for some excuse to avoid work—the 9-to-5 men ; (c.) Those whose unfitness is apparent. Dealing with (a) and (c) is simple ; but class (b), which represents a fair proportion, presents many difficulties. The appointment of these men was originally made because there was nothing known against them. Subsequent promotions are made for the, same reason. Men should only be appointed or promoted if something is known in their favour. Under our present system the burden of proving a case for refusing appointment or promotion i ests with the General Officer Commanding, and unless a strong case is made out which will stand the test of questions in Parliament made by interested parties- -because officers and others are of opinion that they have a vested right in the service- it is very difficult to refuse appointment or promotion. The result is that few men, if any, are refused appointment or promotion on the grounds of inefficiency only, and some specific act of neglect of duty, or often worse, must be, proved against them. It is therefore submitted that no person should be allowed to think that he has a vested right in the service. If men are unfitted for their position they should be compelled to give place to better men. This can be accomplished by adopting business principles— i.e., if men do not show proof of making good, there is a method of getting rid of them which we do not possess ; but is there any reason why we should not possess the same means ? On the administrative, side of the service (if not in all branches) all officers should be obtained from the ranks, appointments to be permanent so long only as the men can successfully and efficiently perform their duties. Thus, like the shareholders in a soundly managed commercial concern, the taxpayers shall obtain value for money expended. (c.) Extreme care should be exercised in the making of all appointments and promotions. It would be better that a Board should make the necessary representations to the Minister, and it is most desirable that the Defence employees should have close relationship in duty and emolument to the members of the Public Service. For this reason any such Board should include the Public Service Commissioner. A Board of this nature would be the means of preventing the appointment of unqualified

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