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£3,591, or 6-30 per cent, of expenditure. Out of a net profit for the year of £3,527 (equal to 5-83 per cent, of income), £1,182, or 33-52 per cent., was allotted as profit distributions to foremen and £2,345 or 3-88 per cent., of total income was carried down to Accumulated Funds Account. (7) INDUSTRIAL REST PERIOD FUND (see Appendix, pages 79 and 84) The statements of account for this fund cover the cost of the rest periods (maximum of one week per man) granted to waterside workers throughout New Zealand in terms of the Industrial Rest Period Emergency Regulations 1943. A capital levy to provide the income for the fund was fixed by the Commission on the basis of 1| per cent, on waterfront wages payments by or on behalf of shipping companies and other employers of waterfront labour during the thirty-nine weeks covering the period Ist April to 28th December, 1943. This levy was deemed also to include cost of disbursement of restperiod wages through National Pay Office Fund on the basis of 2 per cent, of such wages payments. As it was impossible to estimate exactly the anticipated cost of providing the rest periods, the Commission undertook to transfer any balances remaining in this fund (which was of a non-recurring nature) to the permanent fund for provision of annual holidays which would need to be set up under the Government's forthcoming Annual Holidays Bill covering all casual workers (see Section (8) —Aonual Holidays Fund). Reference to the Summary of the Revenue Account, &c., of the Industrial Rest Period Fund on page 84 of the Appendix shows that the total income collected for this fund up to 31st March, 1945, amounted to £37,691, while total payments of rest-period wages during the same period were £30,486. National Pay Office levies absorbed £609 and " Administration : Assessment" (on the basis of 2 per cent, on income to cover Head Office expenses of preparation and collection of accounts, &c.) amounted to £754, leaving a balance of £5,842 in Accumulated Funds Account as at 31st March, 1945. The bulk of the income and expenditure was, of course, included in the accounts for the period ended 31st March, 1944. The Revenue, &c., Accounts for this fund appearing on page 79 of the Appendix deal only with minor additional items of income and expenditure which could not be finalized prior to the closing of the accounts for the previous financial year. There are a few small items still to be dealt with, but it is expected that this fund will be closed off and the balance transferred to Annual Holidays Act Fund during the financial year ending 31st March, 1946. (8) ANNUAL HOLIDAYS ACT FUND (see Appendix, page 81) This fund, which was established as from Ist August, 1944, covers the cost of the application of the Annual Holidays Act, 1944, to casual waterside workers at all main and secondary ports in New Zealand (for list of these ports, see table in Appendix 19. Patea is also included in the fund). The provisions for financing the fund are based on the number of estimated annual paid labour hours. This is considered a more equitable basis than the amount of wages paid, as annual-holiday payments are only fixed in relation to ordinary time rates of pay, whether the work is performed in ordinary or overtime. The initial levy fixed by the Commission was at the rate of 2d. (twopence) per paid labour hour. Annualholiday payments to the waterside workers are determined on the basis of four hours ordinary time rate of pay for each fourteen days (Mondays to Saturdays) a member works or is available for work during the year in the case of union waterside workers, and at the rate of one twenty-fifth of ordinary time hourly rate of pay for each paid labour hour in the case of non-union waterside workers. Details of the conditions governing the operations of the Annual Holidays Act Fund are given on page 8 of the report. The Revenue Account, &c., presented for the Annual Holidays Act Fund on page 81 of the Appendix covers only the first eight months' operation of the fund. Inasmuch as the major payments under the fund—those to union waterside workers, which are based on number of days worked, &c. — cannot be finally determined until after the completion of the annual holiday year on 31st July, 1945, it is not possible to present a strictly accurate statement of the accounts of the fund as at 31st March, 1945. Provision was made by the Commission in terms of the Act for the granting of annual holidays, or one week thereof, in advance of due date to union waterside workers, and in such cases a maximum payment of one week's holiday pay was made at the time the holidays were taken. The total of such payments up to 31st March, 1945, was £26,150. In addition, it was estimated that the balance of accrued union holiday pay as at 31st March, 1945, would be not less than £16,000, which amount is included in " Creditors " in the Balance-sheet as at 31st March, 1945, and gives a total for " Annual holiday pay —Union " of £42,150 as shown in the Revenue Account. At all ports covered by the fund except Auckland, payments of non-union holiday pay were made week by week in accordance with the provisions of section sof the Annual Holidays Act, 1944. In the case of Auckland the value of accrued non-union holiday pay based on the total number of total paid labour hours of such workers for the eight months ended 31st March, 1945, was £4,694, and is also included in " Creditors "in the Balance-sheet as at 31st March, 1945. The expenditure of £7,183 shown in the Revenue Account for " Annual holidays pay : Non-union " is therefore the full and exact liability of the fund under this heading for the eight months' period. It will be noted that levies for the period amounted to £59,429, while expenditure on the basis explained above was £50,521, of which union annual holiday pay accounted for 83-43 per cent, and non-union annual holiday pay for 14-22 per cent. The usual " Administration : Assessment " of 2 per cent, on income has also been charged to cover Head Office expenses in preparation and collection of accounts, &c. A review of the financial position of the fund will be carried out after the close of the holiday year, 31st July, 1945. As mentioned in Section 7, the final balance of Industrial Rest Period Fund is to bo transferred to this fund ; but, in view of increases in the basic rates of pay as from Ist April, 1945, and in order to make provision for YE and VJ Day payments (two days and one and a half days respectively), the Commission has, in the interim, increased the annual holiday levy from twopence (2d.) to twopence farthing (2jd.) per paid labour hour. (9) BUILDING FUNDS (see Appendix, page 82) During the year ended 31st March, 1944, the Commission found that, whereas there was an urgent need for improved or new accommodation both for men's waiting-rooms and for waterfront offices at many of the main and secondary ports in New Zealand, Harbour Boards, on whom the primary responsibility fell for the provision of such accommodation, were in several instances in financial difficulties due to the diversions of normal shipping trade to meet the exigencies of the war situation. To assist in overcoming the existing difficulties and in order to meet the most pressing needs, the Commission decided, as at 31st March, 1944, to set aside £20,000 out of accumulated net balances as a Buildings Reserve. This amount was allotted in equal proportions of £10,000 each from National Pay Office and Co-operative Contracts Funds and appeared among the liabilities of those funds in their respective Balance-sheets as at 31st March, 1944,

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