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well in hand, whilst still another tannery has finished extensions to its chrome leather department which will increase production by about 40 per cent. Several of the smaller tanneries have increased their output of the lighter grades of leather, most of which is going into military jerkins. Footwear. —Production during the year seems to have been on a par with that of last year, an increasing proportion of the total consisting of military footwear for both the Dominion and allied forces. All suitable units in the industry are on military work to the greatest extent possible and production programmes are well in hand. Output of civilian footwear has been kept up to the highest level possible, but the inevitable result of intensified production of military footwear has been periodical shortages in certain types and sizes of civilian footwear. Supplies of sole leather from the tanneries have not been able to keep pace with demand from footwear-manufacturers, but the position is likely to be improved in the near future by the extensions which several tanneries have completed or nearly completed to their sole leather departments. The remarkable expansion to meet wartime needs which has taken place in the footwear industry is illustrated by the following statistics: — Year. Persons engaged. Value of Production. £ 1939-40 . . 3,731 .. 1,864,320 1940-41 . . 4,384 . . 2,548,860 1941-42 . . 4,620 .. 2,954,900 Biscuits and Confectionery.—Factories have been busy during the year on military contracts, some finding it necessary to work three shifts. The shortage of materials, particularly sugar, for civilian lines of biscuits and confectionery, coupled with the scarcity of labour, resulted in fancy biscuits, chocolate, and many other lines of confectionery disappearing almost entirely from retailors' shelves. Towards the latter part of 1942 the position was relieved to some extent and since then supplies of biscuits for civilian use have become more plentiful, but most lines of confectionery are still scarce. Foundries and Engineering Workshops.—Foundries and engineering workshops continue to play a vital part in the Dominion's war effort in supplying munitions to the armed Services, in undertaking important constructional work, and in meeting the needs of primary and secondary industries for plant, machinery, and machine tools previously imported. In the heavy industry activity has been concentrated almost entirely on defence work, and the year has seen a considerable expansion in the output of munitions. In addition, large quantities of parts and replacements for the efficient maintenance of Army, Navy, and Air Force equipment have been turned out. A substantial amount of overtime has been worked to cope with defence orders' and to make up to some extent for the shortage of skilled labour. As far as light engineering firms are concerned, the bulk of orders for E.P.S. equipment placed during 1941 have been completed, and this work has now given place to equally important Service- contracts, as well as the execution' of orders from essential industries. Tinware.—Since contracts for tins for packing Service biscuits, oatmeal, and chocolate were completed during the year canister-makers have been working only to the extent that available supplies of labour and tinplate and the restriction on the manufacture of certain items of tinware allow. Brush and Bro<om Industry.—Units in this industry have been steadily engaged throughout the year in. spite of difficulties associated with the securing of adequate supplies of raw materials. A large part of the work has been for the Services. To conserve materials the range of products has had to be reduced. Furniture and Cabinet Making.—Furniture-manufacturers report that the volume of business offering during the year could not be handled, owing mainly to depletion of staffs. Imported timbers are largely off the market, but supplies of local timbers are said to have been satisfactory. Canning Industry.—Canneries are working to capacity almost entirely on defence orders. One large concern reports an increase in output over 1941 of 60 per cent, and another 27 per cent. Shortage of labour is making it difficult for the industry to cope with the large programme of production set it, and a substantial amount of overtime has been worked to help alleviate the position. Ranges and Cookers.—Production of electric ranges and gas-cookers has been severely restricted owing to shortage of vital materials and skilled labour, while sales show a decline on last year's figures as a result of the limitations on house-building, which naturally exist under present conditions. It was mentioned in last year's report that several units in the industry, in an endeavour to utilize surplus productive-capacity, were undertaking the manufacture of new lines. Further developments have taken place in this direction during the year under review. The manufacture of enamelled cast-iron cooking-utensils has been extended, and the production of other types of enamel-ware considerably expanded—one manufacturer is co-operating with a metal-pressing firm in the production of enamelled mugs from scrap materials, and also enamelled plates; another has commenced the manufacture of enamelled saucepans. In another instance bomb castings and special cooking and heating equipment for the armed forces are now being turned out. These new activities combined with the production of their main lines of ranges and cookers have kept firms fully employed during the year. NEW INDUSTRIES The following important additions to our manufacturing industries were made during the year: Dehydration of food, linseed-oil, fish-meal, fish-liver oil, rubber reclamation, macaroni, plastic substitutes for tin, enamel mugs and plates, gasmasks, turret lathes, batteries for hearing-aids, power-presses.

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