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XXIX

Authority was obtained in section 8 of the Finance Act, 1923, to purchase 375,000 preference " B " shares at par out of the Consolidated Fund, and part of the accumulated surpluses was used for the purpose. This brings up the total holding of " B " preference shares to 1,000,000, which at present market-price equals a value of approximately £2,600,000. The total amount of cash invested, in Bank of New Zealand shares is now £1,250,000, and the Government holdings are, — £ 500,000 preference " A " shares, nominal value £l 500,000 1,000,000 preference "B " shares, nominal value £l 1,000,000 1,500,000 £1,500,000 If the bank's profits continue at present rates, the total shares "A" and "B" will earn an annual dividend of £162,500 —an increase of £50,000 over the dividend paid on the holding prior to the acquisition of the new shares last year. PUBLIC SERVICE. For some time past the question of generally extending the fortnightly payment of salaries and wages of State employees to the whole of the Public Service has been under consideration. This system has already been introduced in several branches of the Service, notably the Government Railways, Post Office, and Government Printing Office, but its extension had to be delayed on account of the increased administrative cost involved. It has now been decided to generally adopt the bi-monthly system, a concession which will doubtless be appreciated by the lower-salaried employees. STORES CONTROL BOARD. The total expenditure on stores for the year was, in round figures, £4,080,000. With the exception of a few small lines urgently required, tenders or quotations were invited for the whole of the stores purchased. The standardization of stores in common use by Departments has been proceeded with, and general contracts for the standardized article or line have been arranged with satisfactory results. It is found that merchants and manufacturers are prepared to quote exceptionally good terms and render the best service to a central authority which can make binding contracts on behalf of the whole of the Government Departments. The Board's effort in this direction has been fimited by a continuance of unstable markets, but the policy will be steadily pursued and extended as opportunities arise. The disposal of surplus and obsolete stores has been reviewed and placed on a much more satisfactory basis. Departments are now required to obtain the Board's authority before effecting a sale. In practically all cases an expert valuation is made, and the Treasury and Audit are advised of the prices fixed. SHIPPING CHARGES. The method of shipping material and stores for Government Departments from the United Kingdom has been reviewed and reorganized. As the result of an agreement arrived at with the shipping companies an annual saving in freight charges of about £5,000 has been effected. It is estimated that the action which is now being taken in connection with the marine insurance cover on such material and stores will further reduce the total cost of imported goods by not less than £2,000 annually. DISTRICT TREASURY OFFICES. In accordance with the policy announced in 1920, District Treasury Offices have now been established in Auckland, Christchurch, and Dunedin. The ability to settle claims locally without delay is proving a distinct advantage to the Government and a convenience to the public. A concurrent audit is in operation in these offices. The establishment of these offices renders it necessary to ask that the imprest for general services should be raised from £100,000 to £150,000. The system