IL—24

Session 11. 1918. NEW ZEAL A N D.

MUNITIONS AND SUPPLIES DEPARTMENT. REPORT BY THE MINISTER IN CHARGE.

Laid on the Table of the House of Representatives by Leave.

OUTLINE OF REPORT. 1. General conditions which have prevailed are' first dealt with. Then the work erf each branch is shortly illustrated. 2. Buying operations : (a) Extent and variety ; (b) storage accommodation ; (c) high quality of goods maintained; (d) inspections of deliveries; (c) estimates for 1919; (/') canteens; (g) Defence Commission; (h) centralizing buying. 3. Coal control: (a) Recognition of committees and their honorary work-; (l>) all activities kept, going ; (c) deliveries interrupted by gales of unusual violence ; (d) prices question referred to Board of Trade; (c) policy for coming summer; (/) war outputs and importations; (g) this year's position so far ; (h) coal stock census ; (/) stimulation of New Zealand output. 4. Petrol control : (a) Origin ; (6) objects ; (c) nature; (d) recognition of assistance. 5. Priority permits: (a) Development-; (b) volume dealt with ; (c) results achieved. (i. Shipping-space inwards to Nkvv Zealand: (a) Cause of shortage; (b) arrangements made to meet position ; (c) tonnage' capacity now available' as compared with pre-war. 7. Conclusion: (a) Recognition of honorary services; (b) recognition of staff; (c) end of the war in sight.

REPORT. GENERAL CONDITIONS. I. During the fifteen months which haver elapsed since my last report was submitted to Parliament the activities of my Department have extended in volume anel variety, corresponding to the general conditions prevailing in New Zealand, as a result erf the war, Twer factors firstly, difficulty in procuring imported articles, due to restricted manufacture abroad, and, secondly, reduced inward tonnage available— have had the effect of increasing the business offering for the Dominion's manufacturing industries. This opportunity has presented itself-at a time when a scarcity of requisite materials and depleted skilled labour have placed manufacturers in a disadvantageous position to cope with an increased volume of business. However, experience has shown that those enterprises faced with these obstacles have not only satisfied extensive military orders, but have t3 a marked degree contributed to meeting the domestic needs of the Dominion. In this connection it may now be interesting to report that military stocks and present requirements are such as to justify a substantial reduction in contracts for stores and supplies. It is hoped that this will have the effect of enabling manufacturers concerned to devote increased attention to civilian orders. Broadly speaking, I express the hope that the finished articles produced by our manufacturers will by their quality command the permanent patronage erf the New Zealand people. If can, I think, be safely stated that the bulk of the' citizens in the Dominion are inclined to recognize the importance of firmly establishing and developing our manufacturing productiveness. It is to be hoped, therefore, that articles of satisfactory quality will continue to be marketed by enterprising concerns, anel thus promote much to our national welfare. 2. The shortage of tonnage inwards to New Zealand has created a necessity for regulating the consumption of the two cardinal power-producing fuels -namely, coal and petrol and has also had the effect erf restricting imports from India, Australia, and the United State's erf America, where goods readily saleable in Nerw Zealand could haver lre<>n procured but for the' lack erf sufficient tonnage. The; position as regards tonnage inwards from tire United Kingdom to New Zealand has fluctuated considerably ; sometimes it has been in excess erf the goods available for shipment, and at other times short erf accumulations. Then again,, commercial enterprises in the United Kingdom have been on many occasions awkwardly situated erwirrg to tin' necessity for a rigid compliance by shipowners with Admiralty instructions, which have' frequently not lent themselves to encouraging a concentration of such good's as may have' been ready for shipment to the Dominion, 11- will Ire borne irr mind that the essential goods most needed in the- Dominion are, in most cases, the' most difficult to secure from the United Kingdom, on account of direct anel indirect war' necessities, anel thus it is not difficult to appreciate the circumstances under which a ship may have been, partially laden at a Homer port with a cargo consisting of merchandise of a kind not the most needed in the 1 Dominion. Under these conditions it will, I think. Ire conceded as more advantageous for a ship so situated to bring something