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The security given by the Government's guarantees allows growers and millers to proceed confidently in expanding their output, which is so strongly desired. A further inducement in this respect is offered by the Government's willingness to provide finance for the extension or development of green-leaf areas, the erection of mill buildings, and the provision of milling-plant. (ii) Pharmacy In tixe past year 18 additional licences were granted to allow pharmacies to be opened in new settlements or in areas wherein increases in population justify their establishment. In some instances, however, non-availability of premises prevents licensees from entering into business. Rehabilitation of ex-servicemen has now reached the stage at which applications both for new licences and for transfers of existing licences from men with that status have declined substantially. Nevertheless, in those cases where interests of ex-servicemen are involved their claims to sympathetic consideration are taken fully into account. (iii) Footivexir-manufacture At 31st March, 1949, 113 units were licensed in this industry, which was producing a full range of footwear. The Footwear Plan Industrial Committee met on ten occasions during the year, while a number of sub-committees considered respectively such matters as incentivepay schemes, bursaries, production allocations, standardization, and specifications for nurses' shoes. The Committee advised the Bureau not only on these matters, but also on such others as applications for licences, plant installations, shoe and leather research, and the importation of footwear. Conferences were held with the New Zealand Footwear Manufacturers' Federation, and the co-operation between that body and the Footwear Plan Industrial Committee was thus maintained. Under the revised footwear plan as formulated in the Industrial Efficiency (Footwear) Regulations 1948, a new Committee was appointed in June, 1948, comprising five licensees' representatives, three workers' representatives, and one Government representative. (/) Appeals Against Decisions op Bureau During the year, 54 appeals against decisions of the Bureau were heard. Of these, 26 were successful and 28 were disallowed. SECTION 7- IMPORT LICENSING SYSTEM IN RELATION TO INDUSTRY The continued increase in the volume of production from the manufacturing industries in New Zealand emphasizes their vital part in the economic affairs of the country. Production is at a high level and the quality of many of the lines being produced is equal to the best available from overseas. To facilitate the supply, where imports are necessary, of raw materials, plant, and machinery, the Department has maintained its contact with the Customs Department in the administration of the Import Control Regulations. As a background against which to consider applications for import licences it is necessary to assess the country's requirements of the end products. The Department's close contact with the various industries is invaluable in these respects.

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