H.—l4.

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.

6