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may be much more difficult than last year. New Zealand's allocation of dried fruits for 1946 is 550 tons less than the quantity received during 1945 and the allocation of canned fruit is only 50 per cent, of the quantity programmed. On the other hand, advice has been received that supplies of rice will be available for distribution to hospitals this year, whereas formerly it was possible to provide for our Asiatic population only. Accounts Imperial Government Contracts. —During the year the following items were produced under contract to the order of the British War Office : Quantities. Oatmeal .. .. .. .. 1,704 tons. Lime-juice cordial .. .. .. 32,736 dozen bottles. Tomato sauce .. .. .. .. 27,172 „ Worcestershire sauce .. .. .. 53,036 „ Jungle chocolate .. .. .. 621 tons. Service biscuits .. .. .. .. 401 „ Malted milk .. .. .. .. 'B9 „ Stocks of Imperial Government Goods. —At the beginning of the year very heavy accumulations of stocks were held throughout New Zealand. The Export Division, Marketing Department, arranged all shipments of Imperial Government contract goods during the year, in accordance with established procedure. Total Revenue and Expenditure:— £ s. d. Total revenue, Ist April, 1945, to 31st March, 1946 _.. 6,402,992 10 11 Total expenditure, Ist April, 1945, to 31st March, 1946 .. 5,285,767 0 9 Excess revenue over expenditure .. .. 1,117,225 10 2 Included in the expenditure total is a net irrecoverable expenditure on rationing and on approved subsidies amounting to £650,725 lis. 3d. The net excess of receipts over expenditure on the trading activities of the Office is therefore £1,767,951 Is. sd. This excess represents a credit to War Expenses Account and is due principally to the liquidation during the year of the accumulated stocks of Imperial Government goods for which payment had been made in former years. Conclusion During the year the practice of consultation with trade groups in policy matters was continued, and appreciation should be recorded of the ready co-operation and assistance extended by the New Zealand Wholesale Merchants' Federation, the National Butchers' Executive Committee and the Provincial Meat Supply Committees, the National Executive Committee of Bacon Curers, the New Zealand Retailers' Federation, the New Zealand Master Grocers' Federation, the New Zealand Tea Brokers' Association, the New Zealand Tea Packers' Federation, the New Zealand Manufacturers' Federation, and the Associated Banks of New Zealand. Co-operation was also received from Government Departments, particularly the Department of Agriculture, Export Division of the Marketing Department, Census and Statistics Department, Post and Telegraph Department, Government Printing and Stationery Department, and Customs Department. Thanks are also due to the Shipping Controller, Mr. J. H. Gilbert, who has co-operated in our procurement arrangements to the greatest possible extent. In all spheres of the work, relations with the above organizations have been most cordial and as a result a difficult task has been accomplished with the minimum of friction and criticism. The past year has been most difficult from the point of view of control of' consumption and the procurement and distribution of imported foods, and it is hoped that the coming year will see worth-while improvements in the world food position with a gradual relaxation of controls and consequent benefit to the whole community.

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