H.—44,

Retail Sale and Distribution of Motor-spirit— With the introduction of the Industrial Efficiency Act and the gazetting of the industry of the retail sale and distribution of motor-spirit, the Bureau of Industry was entrusted with the licensing of future reselling units and control of the position in regard to existing petrol-reselling businesses. Since the requisite Gazette notice was issued, no fewer than 805 applications have been received and investigated. Fishing Industry. On the recommendation of the Bureau, an extensive investigation is at present being made into all the phases of the fishing industry, including marketing, by the Sea Fisheries Investigation Committee, which is now taking evidence and making inspections of conditions in different parts of the Dominion. Pending the finalizing of these inquiries the Government decided to bring the industry of the taking of fish (by use of boats) for sale, the export of fish, and the taking of oysters from oyster-beds under the licensing provisions of the Industrial Efficiency Act. The Bureau is adopting a policy of the present position as far as possible after taking into account the immediate needs of any particular area or the circumstances affecting any application until recommendations of the Investigation Committee are available. As a general rule, therefore, if any particular application embodies proposals for a substantial increase in catching-capacity or supply to a particular market, and the granting of a license might therefore conflict with recommendations which may be made by the Investigation Committee in regard to that area, a final decision on that application is being deferred in the meantime. Applications for licenses dealt with number eightythree. It should be noted that the licensing provisions of the Industrial Efficiency Act have not been made applicable to the retail sale of fish. Appeals. The Industrial Efficiency Act provides that appeals may be made to the Minister of Industries and Commerce against any licensing decision of the Bureau, and in this connection, in accordance with powers given in the Act, the Minister has appointed Sir Francis Frazer as a person to inquire into and report to him upon the subject-matter of any appeal. Up to the present thirteen appeals have been heard, and the Minister has given decisions. Plans or Reorganization. In addition to endeavouring to obtain greater efficiency in industry through the exercise of its licensing powers, the Bureau, with the same object in view, has given consideration to the formulation of plans for the reorganization or rehabilitation of various industries. The following are brief comments upon plans which are under consideration in respect of maior industries. Flax. One of the most important industries which has received consideration is the flax industry. The Bureau prepared a provisional plan of reorganization. When this plan was first placed before those engaged in the industry it was evident that, although a plan of rehabilitation was desired, it was necessary to reconcile many individual interests. The Bureau therefore arranged for the setting-up of committees representative of the various sections of the industry in order to discuss the plan with the Bureau of Industry, with a view to evolving a plan of which the industry could request adoption under the Industrial Efficiency Act, 1936. After several conferences between the Bureau of Industry and the various special committees of millers and growers an amended plan was evolved which met "with the approval of such committees. All flaxmillers and growers were supplied with a notice regarding the material provisions of the plan and were asked to vote for or against acceptance of the plan. To give those engaged in the industry an opportunity to discuss the plan with representatives of the Bureau, meetings were held at Auckland, Foxton, Wellington, and Invercargill, and these meetings were most successful. The results of the voting disclosed unmistakable support for the adoption of the plan, as although a number of voting-papers were naturally not returned, even then 75 per cent, of the principals engaged in the industry voted in favour of the plan. The plan virtually gives self-government to the industry through the medium of the. Industrial Committee, which will be appointed as representative of the industry to carry out the provisions of the plan. The committee will consist of representatives of flaxmillers and growers, merchants manufacturers of flax products, workers, and the Government. The committee will consider problems of research, the organization of marketing, the establishment of an experimental commercial mill and the fostering of the industry in every way as elaborated in the plan itself. It is hoped that as a result of the plan, which has the support of flaxmillers and growers, the reorganization and rehabilitation of the industry will be secured, which, as has been stated by the representatives of the industry is vitally and urgently necessary if the New Zealand flax industry is to survive. Pharmacy.—-The question of the operation of company pharmacy in New Zealand has received the close attention of the Government, and a special Parliamentary Committee was set up for the purpose of examining the whole position and reporting thereon. After receipt of the Committee's report, the matter was referred to the Bureau of Industry for consideration and the preparation of a plan in respect of the industry. The reconciliation of the interests of individual pharmacists and large-scale enterprise has presented a problem of great difficulty, but considerable progress has now been made towards fanalization of a provisional industrial plan which will be submitted as soon as possible to those engaged m the industry. In the course of preparation of this plan the Bureau has held many discussions with representatives of all the interests directly concerned.

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