H.—44

The policing of the regulations has been, carried out by an augmented staff of Inspectors attached to the Tribunal's Office in Wellington, and to the district offices of the Department of Industries and Commerce at Auckland, Christchurch, and Dunedin. In smaller towns and more remote districts such policing has been effected by periodic visits of the Tribunal's Inspectors and by the District Inspectors of Factories. The Price Tribunal is co-operating fully with the Standards Institute in the formulation of standards, and is represented on a number of committees of the Institute engaged in formulating standards in different commodities. The extent to which the retail-price index has risen from the outbreak of war up to 31st December, 1942, is 134 per cent. Comparable figures for other Empire countries are not available for a date later than August, 1942, and in the case of Canada and India, July, 1942, and Australia, September, 1942. At these dates the increases shown since September, 1939, were —New Zealand, 124 per cent.; Australia, 20-71 per cent. (September, 1942) ; Canada, 16-8 per cent. (July, 1942) ; United Kingdom, 29 per cent.; India, 60 per cent. (July, 1942); Egypt, 76-6 per cent. (June, 1942). Comparison of the foregoing figures indicates that New Zealand continues to show the smallest increase of any of the countries mentioned. MANUFACTURING : GENERAL COMMENTS Manufacturers in general report that activity has been at a high level during the year. In the case of industries intimately connected with the Dominion's war effort, increasingly heavy demands have been made for munitions, war equipment, and for food and clothing for the Services. Industry is measuring up splendidly to these demands, and production programmes are well in hand. Further large-scale additions to buildings, plant, and machineiy have been made during the year in many war industries to enable output of critical materials and goods to be stepped up. Shortages of raw materials and skilled labour have raised serious difficulties in the case of industries not on war work, or to a limited extent only, but the fact that many have been able to employ their surplus productive capacities on the manufacture of new lines, either wholly themselves or in co-operation with other firms, is a tribute to the resourcefulness and adaptability of New Zealand's manufacturing industries. Concomitantly with increased activity in manufacturing industries, a considerable amount of overtime was worked. The latest figures of overtime available are those for 1941-42, during which period nearly nine million hours overtime were worked, an increase of approximately 2,850,000 hours on the previous year. No doubt the figure for 1942-43 when published will reveal a still greater total of overtime worked. The following statistics relating to what may be termed the " true " manufacturing industries, give an indication of the high level of activity which exists in these industries to-day, and also the extent of the expansion which has taken place since last year:—

Comments on some of the more important industries follow:— Woollen-miTls.—Mills have been fully occupied during the year mainly on production of material and clothing for the Armed Services. Productive capacities of mills have been substantially increased over the period, and an indication of the efforts being made by the industry to meet the ever-increasing demands of the services for clothing is contained in the following statistics relating to the industry as a whole and covering the last three years:— Year. Persons engagod. Value of Production, 1939-40 . . 2,980 .. 1,461,750 1940-41 .. 3,489 .. 2,243,460 1941-42 .. 3,855 .. 2,670,080 Clothing Industry.—lncreased demands have been made on this industry for military clothing and from 80 per cent, upwards of the productive capacities of the larger factories is being employed on this type of work. Additional clothing factories were brought into the production of military clothing during the year, and the total output of this class of clothing increased by nearly 50 per cent, over 1941. The restricted quantities of textile piece-goods arriving under quota from overseas and the inability of local mills to supply cloth for civilian needs are causing concern to the smaller firms, who are finding it increasingly more difficult to maintain staffs and keep plant going to reasonable capacity. Tanning Industry.—'There has been a steady expansion in production to cope with the heavy demand for leather for military footwear. Tanneries are working to capacity, and in an endeavour to meet the position several firms are carrying out large extensions to their works. Others have completed extensions to building and plant—one firm has just completed extensions to its sheep-skin tannery at a cost of approximately £41,000 in order to substantially increase its output of skins for leather jerkins and boot-linings, and the duplication of its hide tannery, the cost of which is estimated at £20,000, is well under way; another has additions to plant in its chrome and sole leather departments

2

Y«,. Porsona engaged. «»* pSSSto. £ £ £ 1940-41 .. .. .. 80,646 17,190,692 33,291,110 64,172,737 1941-42 83,261 19,054,534 37,164,925 71,936,676 Increase .. .. .. 2,615 1,863,842 3,873,815 7,763,939