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Examination of Marine Engineers. During the year 189 candidates were examined for Marine Engineers' Certificates of Competency at the various centres throughout the Dominion. Of these, seventy-six candidates were examined for third-class, second-class, and first-class ordinary and motor certificates of Imperial validity ; of the forty-six third-class candidates who presented themselves for examination, twenty-three were successful and twenty-three were unsuccessful; of the eight second-class ordinary, motor, and steam endorsement candidates examined, seven were successful and one unsuccessful; of the twenty-two candidates examined for first-class ordinary, motor, and motor endorsement, twelve were successful and ten unsuccessful in the examination. In the case of first-class candidates the above particulars are comprised of nine candidates for ordinary certificates, of whom four were successful, six candidates for motor certificates of whom four were successful, and seven candidates for motor endorsement, of whom four were successful. In the case of second-class candidates, the foregoing return comprised five candidates for ordinary certificates, all passed ; two candidates for motor certificates, one passed and one failed ; and one candidate who was successful for steam endorsement. Of the twelve successful candidates for first-class examination, six passed at the first attempt, four at the second attempt, and two at the third attempt. Of the seven successful candidates for second-class examination, all passed at the first attempt. Of the twenty-three successful candidates for third-class examination, fifteen passed at the first attempt, seven at the second attempt, and one at the fourth attempt. The summary for third, second, and first class examinations being 55-3 per cent, passes and 44-7 per cent, failures, represents a decrease of 10 per cent, successful candidates over the previous year. There has been a reduction of about 22 per cent, third-class candidates presenting themselves for examination, which is, no doubt, due to the small demand for apprentices during the depression period. On the other hand, the return shows approximately the same percentage of increase for the higher grade certificates due to the improved shipping conditions. Of the remaining candidates, 113 examined for Certificates of Competency, which are valid in New Zealand only, which number represents an increase of 28 per cent, over last year, due, no doubt, to the proposed new regulations regarding Coastal Motor Certificates in favour of the present P.Y.O.S. Certificates. Of these, seventy —fifty-two of whom were successful —were examined for sea-going vessels propelled by some motive power other than steam ; thirty-six —thirty-one of whom were successful —for service in vessels propelled by some motive power other than steam plying within restricted limits ; seven —five of whom were successful —for steam-driven vessels plying within restricted limits. The examinations for first-class, second-class, ordinary and motor certificates, and those for thirdclass certificates are held at the four main centres only. Examinations for certificates of competency, which are valid in New Zealand only, have been held at the fifteen centres throughout the Dominion. Prosecutions. During the year proceedings were instituted under the various statutes administered by this Department. Of the thirty-nine cases the proceedings under each Act were as follows : Fisheries Act, 24 ; Inspection of Machinery Act, 10 ; Harbours Act, 1 ; Shipping and Seamen Act, 4. Fisheries. The report of the Chief Inspector of Fisheries, which is appended, deals fully with the activities of this Branch of the Department during the past year. The sale of rock oysters showed an improvement on the previous year, sales amounting to £4,964 13s. lid., as against £3,762 6s. Bd. for the 1935 season. The number of sacks marketed was 4,033, compared with 3,037 sacks in 1935. The quality of the oysters was again excellent and sales were brisk. Expenditure on oyster cultivation for the year was £1,161 14s. Id. Whaling. Under the provisions of the International Whaling Convention signed at Geneva in 1931 the Marine Department has authority to issue licenses only to vessels registered in New Zealand. One floating factory owned in the United Kingdom, but registered in New Zealand, is operating under international convention license in the Antarctic waters ; and the whaling-station operating in New Zealand waters from Tory Channel took sixty-nine whales during the 1936 season with a yield of 280 tons of oil, as compared with fifty-seven whales with a yield of 258 tons during the previous season. The improvement shown in the price of whale-oil has been maintained during the past year. Staff. During the year the five-day working-week was instituted where practicable in the various branches of the Department, the additional hours for recreation purposes being appreciated by members of the staff. The conduct of the staff during the year has been excellent. The fullest co-operation lias been shown and the efficiency of previous years maintained. I have the honour to be, Sir, Your obedient servant, L. B. Campbell, Secretary.

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