8.—4 a,

Trade Representative in Toronto. 372. The Dominion now maintains a trade representative in Toronto, and the cost for 1930-31 was £3,407. 373. We consider that under present conditions an annual cost of £3,400 for representation in Canada is too high. A representative in Canada is of little value in promoting trade between New Zealand and that country. When tariff conditions improve, the trade will right itself through the usual commercial channels. 374. The Customs Department has a representative in the United States, and this officer visits Canada when required. We recommend that his services be utilized by other Departments and that the position of trade representative in Canada be abolished. A saving of approximately £3,000 should result. Saving, £3,000. New Zealand Organization.. 375. This section of the Department maintains branch offices at Auckland, Christchurch, and Dunedin. We recommend that these be closed, and that the total expenditure in connection with industries and commerce be reduced by at least 50 per centum. We are of opinion that a much smaller organization than at present exists should suffice for the needs of the community. 376. In particular, we would mention — (1) Industries and Commerce Bulletins. 377. These are issued quarterly and contain a summary of finance, trade, and industry. We consider that this publication is superfluous, and duplicates, in a large measure, the publications of the Census and Statistics Office. We recommend that the publication of the bulletins should cease. (2) Gas Regulations. 378. The expenditure incurred in this connection is recoverable. Notwithstanding this, we recommend that the regulations be revised with a view to reducing the cost of the service to the public. General. 379. We have mentioned that savings of £4,300 and £3,000 should result from the closing of the offices at Sydney, Melbourne, and Toronto. This... saving is not confined to this branch of the Department. We consider, however, that with the closing of the offices mentioned, in addition to those at Auckland, Christchurch, and Dunedin, and a corresponding reduction in the personnel, it should be possible to save at least a further £5,000 in connection with this branch of the Department. Subdivision ll.—Tourist and Publicity. •380. In our opening remarks we referred to the doubtful value of State activities in connection with tourist traffic. 381. We will deal first of all with the question of tourist and health resorts, and in order that the cost to the Dominion may be more readily realized we show hereunder a table setting out the results during the last four years : —

44

1927-28. 1928-29. j 1929-30. 1930-31. £ £ £ £ TeAroha .. .. .. 3,089 3,301 3,220 3,572 Rotorua baths .. .. .. 8,627 8,993 9,094 10,689 Rotorua sanatorium .. .. 1,410 1,700 2,092 1,172 Rotorua gardens .. .. 4,201 4,167 4,733 4,426 Rotorua electric system .. .. 4,213* 5,507* 6,980* 5,831* Rotorua water and drainage .. 4,680 4,844 5,111 6,339 Rotorua acclimatization .. .. 77* 268* 253* 314* Rotorua reserves .. .. .. .. 1,669 1,629 Rotorua wharves and beacons .. .. . ■ 321 325 Waimangu round trip .. . . 37* 89* 388 553 Waitomo Hostel and Caves .. 2,236* 203* 785 3,059 Lake House, Waikaremoana .. 1,084 1,059 1,621 2,370 Morere Hot Springs .. .. 261 110 123 171 Mount Cook Hermitage .. .. 1,713 1,594 1,366 1,555 Queenstown .. .. .. 754 956 | 927 762 Te Anau steamer and Hotel .. 756 1,640 1,099 1,178 Glade House, Milford Hostel, &c .. 3,020 3,516 5,324 6,513 Miscellaneous reserves .. .. 2,842 3,433 1,152 1,066 Total losses .. .. 25,874 j 29,246 31,792 39,234 I * Profit.