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To His Excellency the Right Honourable John Rushworth, Viscount Jellicoe, Admiral of the Fleet, Knight Grand Cross of the Most Honourable Order of the Bath, Member of the Order of Merit, Knight Grand Cross of the Royal Victorian Order, 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, 19.1.2, I have the honour to submit the following report, as required by section 15 of the Act.

REPOET. Since the last report it has been the unpleasant duty of the Commissioners to pursue a policy of retrenchment. Many of the officers retrenched were eligible for a.nd were granted retiringallowances under the Public Service Superannuation Act. Others who were almost near the retiring-age, but who would not otherwise have been eligible for a pension, were provided for by amending legislation, which made provision for the granting of a retiring-allowance to an officer (a) whose age is not less than fifty-seven Years ; or (b) whose age is not less than, fifty-two years, if his length of service is not less than twenty-seven years ; or (c) whose length of service is not less than thirty-two years. The total reduction in the staff (classified and temporary, excluding workmen) during the year ended 31st March, 1922, was 1,093 officers, their annual salaries being £395,006. Reduction in Classified Staff. The number of permanent classified officers in the Service on the Ist April, 1921, was 7,353 ; total annual salaries, £2,088,229 : on the 31st March, 1922, was 6,781 ; total annual salaries, £1,804,483 : thus showing a reduction in classified staff during the year of 572, and in salaries of £283,746. Details of the reduction are shown in Table 111. The reduction, would have been, greater but for the necessity for the appointment of 144 additional officers to certain Departments, and the permanent appointment of 46 employees previously on the temporary staff. These additional appointments were principally in the following Departments : — Number of Salaries. Officers. £ Agriculture .. .. .. ..8 1,510 Education .. .. .. ..9 1,195 Land and Income Tax .. .. . . 8 695 Lands and Survey .. .. .. 9 825 Mental Hospitals .. .. ..35 6,492 Printing and Stationery .. . . .. 7 1,582 Prisons .. .. .. ..5 1,150 Health .'. .. .. ..57 1.0,090 Public Trust .. .. .. ..10 1,400 Public Works .. .. .. ..15 3,675 State Forest Service .. .. ..5 1,130

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