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During the year there have been very few applications for new theatres, but an interesting development arose in connection with an application which involved the granting of a temporary license. There are no regulations that enable temporary licenses to be granted, and the question formed the subject of discussion by the Film Industry Board. A recommendation has now been made that appropriate emergency regulations be issued for the purpose of enabling temporary licenses to be granted, pending a return to more normal conditions. The inquiry into the question of the distribution of film, as recommended by the Industries and Commerce Committee of the House, did not take place during the year, as a satisfactory solution of the immediate difficulty facing the petitioner, concerning the supply of film, was found. In view of the possible post-war trends in the industry, the holding of the inquiry may be further delayed, but the whole matter of the distribution of film and other questions pertaining to the industry are under constant review. During the year the Film Industry Board has met and matters of general application to the industry as a whole have been discussed and dealt with. Generally speaking, it can be said that the industry has been giving good and adequate service to the community, in spite of difficulties in keeping theatres up to pre-war standard. MINISTRY OF SUPPLY The Ministry of Supply has throughout the war striven to keep industrial production and the flow of essential consumer goods at the highest possible level. The year under review has been as difficult as any of the war years which preceded it. Supply problems changed very frequently, and the local and overseas offices of the Ministry were constantly required to revise their policies and plans to fit in with the rapidly changing demands of the war and rehabilitation. The tremendous difficulties which have beset every country in obtaining supplies during wartime are common knowledge, and the fact that New Zealand emerges to-day in a more favourable position than any other country, and with an outstanding war effort to its credit bears testimony to the success of the work in which the Ministry has shared. In carrying out this task every use has been made of the specialized knowledge of individuals and representative bodies, whose intimate association with the many and varied problems of overseas procurement has proved most valuable in obtaining and distributing the vast range of raw materials and manufactured goods for which we have had to enter into strong competition with other nations to maintain our war supplies overseas and our civilian supplies here. The recession of war from New Zealand's shores was reflected in the diminished need for lend-lease goods, but this to some extent was offset by the assistance we have accepted from Canada in the form of mutual aid. Alterations in outlook and general policy precipitated by the unexpectedly swift changes in the war situation have called for more versatility than ever in adjusting the nature of the Ministry's work to the gradual freeing up of supplies and the switching of procurement into channels more suitable to peacetime conditions. There has been a noticeable reduction in the volume of contracts for warlike stores placed with New Zealand manufacturers, due to the general decline in the demand for munitions, engineering stores, and equipment both for our own Forces and for our allies. On the other hand, considerable commitments have been undertaken recently on behalf of U.N.R.R.A., the Netherlands East Indies, and other overseas agencies for relief and rehabilitation purposes. A paramount objective, however, has been the release of manufacturing capacity from war and relief demands to meet the surge of civilian requirements following the discharge of personnel from the Services, and planning for this has occupied a prominent place in the more recent activities of the Ministry of Supply. The time is now fast approaching when the Supply organization will disappear and the Department of Industries and Commerce will resume its normal functions. Reorganization is now taking shape to make the change as smooth as possible. The experience which has been gained by officers of the Department during the war should greatly benefit industrial and commercial interests as the Department resumes its peacetime position in the business life of the Dominion as counsellor and friend of manufacturers and the commercial community in dealing with problems—national, local, and individual. RECLAMATION OF WASTE MATERIAL During the past year—completing nearly five years of service—the National Council for Reclamation of Waste Material, with 110 affiliated committees, has continued its volunteer activity in the salvaging of waste, principally in the collection and planned disposal of used truck and car tires and tubes and waste paper. The year under review has proved to be a most successful one. The yield of waste rubber, urgently required for reclaim and other essential purposes, was greater than for any previous year since December, 1941, when Japanese aggression spread in the Pacific. A total of 3,090 tons has been delivered to the reclaim mills at Woolston and Penrose during the last three years. Substantial quantities of repairable or retreadable tires were selected from stocks received and sold to permitholders—particularly to firms manufacturing farm trailers'—whilst thousands of tires with serviceable walls were processed into liners, sleeves, and boots. All tires with slightly worn treads but fractured in the walls have provided hundreds of strips for retreading or recapping tires for vehicles classed as essential. The total number of used car and truck tires handled over a period of three years and three months ending 31st March last exceeds half a million, in addition to many other types of serviceable and reclaimable rubber goods. The mills have been kept in full production, and stocks delivered or in hand show progressive improvement from month to month. Waste paper salvaged over the last five years reached a total of 25,700 tons ; of this total, 5,615 tons were delivered to pulping-mills during the year under review.

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