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STATEMENT OF FINANCIAL OPERATIONS AND BUSINESS OF THE DEPARTMENT FOR THE YEAR ENDED 31st MARCH, 1937. RECEIPTS AND PAYMENTS. The receipts and payments of the Department for the financial year 1936-37 are shown in the following account: — Receipts. Payments. £ s. d. £ s. d. £ s. d. £ g. d. Balance forward .. .. .. .. 40,830 5 7 Salaries ... .. .. 1,922,277 14 1 Postages .. .. 1,152,798 12 1 Conveyance of ocean and air Money-order and postal-note mails .. .. .. 106,125 8 11 commission .. .. 71,767 0 11 Conveyance of inland mails.. 124,148 19 3 Private box and bag rents and Conveyance of mails by rail.. 91,476 5 1 rural-delivery fees .. 51,953 19 1 Maintenance of telegraph and Miscellaneous receipts .. 395,007 10 0| telephone lines .. .. 108,173 16 3 Paid telegrams .. .. 313,070 211 Renewals and replacements.. 182,274 11 6 Paid tolls .. .. 562,543 2 9| Motor services and workshops 77,165 3 4 Telephone-exchange receipts 1,338,958 2 1 Maintenance of Post and Tele- — 3,886,098 9 11 graph buildings .. .. 42,710 12 8 Miscellaneous .. .. 396,407 17 11 Interest on capital liability.. 566,000 0 0 Sick Benefit Fund .. 5,665 0 0 — 3,622,425 9 0 Paid to Consolidated Fund ~ .. .. 3,297 14 10 Renewal and replacement of Assets Fund (investment) .. .. .. .. .. 260,000 0 0 Balance carried down .. .. .. 41,205 11 8 £3,926,928 15 6 £3,926,928 15 6 £ s. d. Balance brought down .. .. .. £41,205 11 8 The total cash value of the transactions of the Department, inclusive of the above, amounted, to approximately £236,000,000. STAFF. The year was notable not only from the point of view of the large increase in the numerical strength of the staff, but also on account of important changes that were brought about in the interests of employees. The strong demand for additional staff, to which reference was made in last year's report, was intensified during the year, and some idea of the rapid growth of the personnel can be gauged from the fact that within twelve months employment was given to approximately 1,200 outside applicants. The permanent staff alone increased from 9,298 to 10,212, a rise of just over 900. Whilst portion of the increase can be attributed to the shorter working-week, there is no doubt that the improved conditions generally necessitated the strengthening of staffs in every section. In keeping with the increase in numerical strength and the better times being experienced, it was found possible to give improved status to a large number of deserving officers. This movement, together with Government's action in restoring salaries and wages to the 1931 level, did much to improve the lot of officers. The forty-hour week was a welcome innovation and is proving a distinct benefit to all employees, particularly to those who have been freed from Saturday work. It is unfortunate that the workingconditions in the Department are such as to limit the number of officers who can be released from Saturday work, but it is hoped that as the public become accustomed to the change it will be possible to extend the benefits of the five-day week. Important legislation affecting the staff was enacted during the year. The Political Disabilities Removal Act conferred full political rights on public servants, and the Post and Telegraph' Amendment Act provided the machinery for the setting-up of a tribunal to report to the Minister in connection with working-conditions in the Service. Officers are given representation on the tribunal and will therefore have a voice in determining the conditions of their employment. Perhaps of most importance to the younger members of the staff was the application to the Service of the basic-wage principle. The seriousness of the effect of the non-advancement of messageboys during the depression years had become very evident, and the low rate of remuneration paid under the salary schedules to many officers who had reached adult age had caused the Department much concern. Government agreed to an adjustment of salaries that has had the effect of compensating these officers to some extent for their long wait for promotion. Another matter of vital importance to the staff is that the regrading of the Service, which has been postponed since 1934, is to take effect from the Ist April, 1937. The increased business handled by the Department has placed heavier responsibilities on. members of the staff, who have met the position cheerfully and without any relaxation of effort to give the public the best service possible. Officers as a whole have carried out their duties in a thoroughly efficient manner affl have succeeded in maintaining that high standard of efficiency which has earned for the Department'the excellent reputation that it enjoys.

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