H.—44.

BUREAU OF INDUSTRY. INDUSTRIAL EFFICIENCY ACT, 1936. Report tor Year ended 30th April, 1938. Ordinary Members — Mr. L. J. Schmitt (Chairman), Secretary, Department of Industries and Commerce. Mr. F. Johnson (Deputy Chairman), Assistant Secretary, Department of Industries and Commerce. Mr. E. J. Fawcett, Assistant Director-General, Department of Agriculture. Mr. E. D. Good, Comptroller of Customs. Mr. E. L. Greensmith, Chief Inspector, the Treasury. Mr. J. S. Hunter, Secretary, Department of Labour. Mr. L. J. McDonald, Secretary, New Zealand Standards Institute. Dr. E. Marsden, Secretary, Department of Scientific and Industrial Research. Mr. G, A. Pascoe, Technical Advisory Officer, Department of Industries and Commerce. Mr. G. C. Rodda, Secretary to the Treasury. Mr. A. Tyndall, Director of Housing Construction and Under-Secretary for Mines. Special Manufacturers' Representatives — Mr. C. M. Bowden, Public Accountant, Wellington. Mr. I. Matheson, Matheson and Wilkinson, Ltd., Wellington. Special Farmers' Representatives — Mr. T. C. Brash, Secretary, New Zealand Dairy Board. Mr. H. Morrison, Sheep-farmer, Awatoitoi, Masterton. Secretary.—Mr. D. W. Woodward, Department of Industries and Commerce. INTRODUCTORY. Since the presentation of the last annual report the Bureau of Industry has continued to expand its activities under the Industrial Efficiency Act, 1936, by which the Bureau is constituted and its duties and functions defined. At the present time there are a large number of problems being considered and investigated by the Bureau, all of which affect to a greater or lesser degree the industrial development and organization of the Dominion. One of the most important matters completed by the Bureau during the year was the successful preparation of an industrial plan for the pharmacy industry. An Industrial Committee has been set up to administer the plan, and it is anticipated that widespread benefits to pharmacists and consumers alike will result from the operation of the plan. Through its powers to administer the licensing provisions of the Industrial Efficiency Act the Bureau has been able to exercise a beneficial measure of control over a number of important industries. The Bureau has many activities, however, besides industrial planning and licensing, and one of the most important of these is in the direction of making recommendations to the Government upon important economic problems. Among these latter, during the year under review, was the question of the additional tariff protection granted by the Government to certain domestic industries. The Bureau has a number of important investigations under way at present, and it is hoped that these inquiries will result in the setting-up of new industries and the further development of industry in the Dominion. Because of their nature and importance, however, it is possible that, in regard to a number of these proposals, the completion of the investigations will occupy some time. A brief review of the activities of the Bureau as far as they concern the more important work carried out during the past twelve months is now given. MEETINGS HELD: WORK OF COMMITTEES. During the twelve months ended 30th April, 1938, forty-four meetings of the Bureau were held. In order to facilitate and expedite consideration of the wide range of matters coming before the Bureau, committees are usually appointed to investigate the various problems and to bring them to a final stage. There are over thirty such committees, and these consist of appropriate members of the Bureau and technical officers of the various Departments of State directly concerned in the subject under consideration. Most of these committees meet fairly frequently, and during the year the total number of meetings held by all committees was approximately two hundred and thirty. It will be seen, therefore, that the Bureau is actively engaged in the very responsible work with which it is charged. LICENSING. The powers of licensing given by the Industrial Efficiency Act are designed to secure greater efficiency in any industry, to the benefit of both consumer and producer, by regulating the entrance of new units into the industry concerned in accordance with economic considerations, and so preventing the establishment of redundant units. This does not mean a maintenance of the status quo, as the governing aim of the Bureau in its administration of the licensing provisions is to ensure a maximum measure of service to the consumer. The question of whether or not any industry is brought within the licensing provisions of the Act is entirely at the discretion of the Hon. the Minister of Industries and Commerce. The Hon. Minister, however, as a general rule, follows a policy of referring all applications for the invocation of the licensing provisions to the Bureau of Industry for consideration and report before giving his decision. Although the Bureau has considered a number of such applications from industries and individuals desiring the protection which licensing affords, there have been only two of these granted during the

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