H.—44,

(the manufacture of gas-meters) was delicensed because of the industry's inability to agree among themselves upon an industrial plan. Similarly, unless the units in an industry desirous of licensing are prepared to co-operate in the formulation of industrial plans the Hon. the Minister and the Bureau do not as a rule favour the application. Two industries were licensed during the year—the manufacture of cigarette-papers and nails respectively. The following are the industries at present (Ist June) licensed: — Manufacture of products consisting of a combination of asbestos and cement. Manufacture of batteries or cells, commonly known as dry cells. Manufacture and/or assembly of secondary or storage cells and batteries, commonly known as wet batteries, or any part or parts thereof. Manufacture of cement: Portland and other structural or building cement. The business of any chemist or druggist carried on by the keeping of any open shop or place for the compounding or dispensing of prescriptions. Manufacture of cigarette-papers. Taking of fish for purpose of sale (not salmon, trout, whitebait, or oysters). Export of fish (whether fresh or preserved), (not salmon, trout, whitebait, or oysters). Importation and/or wholesale distribution of motor-spirit. Retail sale and distribution of motor-spirit. Manufacture of nails. Taking of oysters from oyster-beds. Manufacture of pumps or the assembly of parts thereof for the distribution of motor-spirit. Manufacture of electric ranges, including the assembly of parts thereof. Manufacture of rennet. Manufacture of rubber tires and tubes for all types of vehicles. Manufacture of wooden heels for footwear. APPEALS. Appeals to the Hon. the Minister against decisions of the Bureau have continued to be referred for hearing and report to the Hon. Sir Francis Frazer. During the year the Hon. Sir Francis heard sixty-five appeals and reported thereon to the Hon. the Minister. Nine of the appeals were allowed and in each of these cases the decisions of the Bureau in question were reversed or modified. As previously, most of the appeals concerned the petrol-reselling industry, in respect of which applications for licenses far outnumber those of any other industry. Considering the number of decisions on applications for licenses made by the Bureau during the year (about one thousand, of which approximately nine hundred were in regard to petrol reselling), the number of decisions reversed on appeal (less than I per cent.) may be regarded as indicative of the fairness of the Bureau's decisions and licensing policy generally. INDUSTRIAL PLANS. A number of industrial plans have reached a stage where finality may be expected at an early date. The industrial plans and industrial committees for the flax and pharmacy industries respectively have continued, to function satisfactorily, although the continued depressed state of the flax industry due to low prices for hemp has been a retarding factor in the development of the industry. Brief reports on the flax and pharmacy industries, as well as on some of those industries in respect of which plans are in course of preparation, are given hereunder. Flax. The Industrial Efficiency (Flax) Regulations 1938 were based on the industrial plan prepared for the flax industry, and the regulations are administered by the Flax Plan Industrial Committee, comprised of the following members Nominees of — Government. —Dr. E. Marsden (Chairman), Department of Scientific and Industrial Research ; Mr. F. Johnson, Department of Industries and Commerce ; Mr. E. J. Fawcett, Department of Agriculture; Mr. P. T. Robinson, Employment Bureau, Palmerston North. Millers.— Mr. L. A. Neiderer, Gorge Boad, Southland; Mr. B. B. Wood, Christchurch. Growers. —Mr. A. H. Long, Kaingaroa, North Auckland. Manufacturers of Flax Products. —Mr. S. H. Maddren, Christchurch. Workers.—Mr. EL. 11. Podmore, Foxton. Mr. S. H. Maddren, having disposed of his rope and twine business, has since resigned from the Committee, and Mr. F. W. Yickerman, of Wellington, who is managing director of New Zealand Woolpack and Textiles, Ltd., has been appointed by the Hon. the Minister to represent the manufacturers of flax products. The Committee has met on a number of occasions, and the Executive has met frequently. The low market price for hemp, as reported last year, has continued throughout the year, and the Government has maintained its assistance to the industry by way of a subsidy on hemp exported. There is still no indication of the overseas market recovering, and serious consideration is being given to concentrating the rehabilitation of the industry on the basis of internal utilization of all fibre for rope, twine, and textile goods and other purposes.

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