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the improvement in various aspects of the national economy since the present Government took office. It may be compared with a similar table (also numbered 21) in the 1935 Financial Statement. Some outstanding items are : —- As shown in 1935 Table. Latest Results. £ £ Yalue of total production .. .. 98,800,000 114,200,000 Value of exports .. .. .. 43,000,000 64,600,000 Salaries and wages paid .. .. 65,700,000 85,000,000* Mortgages discharged .. .. 13,800,000 20,700,000 Bank debits (excluding Government) . . 676,200,000 916,200,000 * Provisional. It is impossible to present the whole scene by an array of statistics, as some of the more important aspects of human welfare cannot be measured by such means, but if we think back to three years ago and compare conditions then with those obtaining now, the improvement will be brought home to us in a striking manner. Incomplete as these particulars are, they constitute a record of which the Dominion may be justly proud. Our standard of living compares favourably with that of other countries, but there are many ways in which it could and should be improved. The standard of living depends on the maximum production of desirable commodities and the Government will not rest content so long as there are men and women unemployed and our resources are not fully used. EMPLOYMENT PKOMOTION. The methods adopted to promote employment have been first to endeavour to absorb men into normal productive employment. To this end the State Placement Service which the present Government established has proved particularly valuable, and during the past year alone 14,000 permanent, 9,000 temporary, and 9,000 casual positions were found throughout the Dominion. Employers are, to an increasing degree, taking advantage of the facilities which • the Service offers. The Government are by various means encouraging the establishment of new industries and the extension of existing ones. If this Dominion is to increase or even maintain her existing population in remunerative employment secondary industries must receive more attention than has been the case in the past. This does not mean the bolstering-up of uneconomic enterprises by subsidies or tariffs, but the intelligent control and development of industries which this Dominion should be able to carry on to meet the requirements of her own population and to provide for export those commodities in respect of which our Dominion possesses natural advantages. An important index as to secondary production is the return of factory workers of which the latest recorded figures show 111,041 employed, being 8,766 in excess of the previous year, and 6,593 greater than the number employed in 1929-30. The pushing-ahead of public works, to which I shall refer in greater detail later, has been another major factor in meeting the unemployment situation. Since 1870, public works have played an important part in New Zealand's economic development, and suddenly to reduce the expenditure on such works as was done in 1930-35 naturally had a most damaging effect on the national welfare. Public works are now recognized in most countries as a very useful and advantageous method of coping with unemployment. In regard to the special finance provided for dealing with the problem of employment it is satisfactory to note that in spite of the additional charges imposed on the Fund by reason of the improvement in rates of pay the year closed with a balance.

Employment promotion.

Secondary industries.

Public works.

Employment Promotion Fund.

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