H.—3sb.

Under this section there has come about, in a general way, a reduction of apprentices' wages, and, in addition, new apprenticeship orders contain a further lower wage scale ; and the effect in some industries is that there are first-year apprentices, with varying periods of service, each receiving a different scale of wages. During our investigations we constantly met employers who stated that the scale rate of wages for apprentices had proved to be too high, that many of the restrictions contained in apprenticeship orders were irksome, and in the light of the experiences gained since the Apprentices Act came into operation, unless the necessary alterations were made to meet the changed conditions, the taking-on of apprentices would not be encouraged. This would be a serious matter for the youth of the country, who would be denied the opportunity of being trained in useful vocations, and the result eventually would be that when trade conditions returned to something like normality and the demand for skilled men increased they would have to be imported and our own boys woiild become the unskilled workers. Apprentices Act. —We recommend that the provisions of the Apprentices Act be amended by first removing, as far as possible, the anomalies in the present rates of wages with a limit of not more than a 20 per cent, reduction on the rate prevailing prior to amendment contained in section 56 of the Finance Act, 1932. (It is noted that employers now have the power to apply for a variation of the apprenticeship contract, but there is the strongest suspicion that efforts are being made to introduce the " black ban " (i.e., boycott employers) on those who support or suggest any reduction in wages or relaxing of restrictions, and the difficulties in trade make many employers diffident about individual action ; hence the recommendation that legislative action should be taken.) Unexpired Apprenticeships. —We also recommend that, where practicable, arrangements be made to enroll unemployed apprentices with unexpired apprenticeship contracts in suitable classes at technical schools, and that in each case where the attendance has been satisfactory and an examination discloses that a standard of efficiency, as fixed by the Principal of the school, has been attained by the apprentice, such time spent at technical classes shall be regarded as a completion of apprenticeship. Training Boys for Sea. It is evident from representations made to us that the opportunities for New Zealand boys to enter seafaring occupation are relatively non-existent. Investigations indicate that the possibilities for employment of boys aboard ships, either coastal or ocean-going, are almost negligible. For some years past actual crews have been in excess of the manning scale —in some cases considerably in excess— but naturally in the present state of the shipping trade with a large percentage of ships out of commission there has been a tendency to lower running-costs by reducing crews. This, however, is usually a matter of negotiation between employer and employees. The difficulty of placing boys may be further emphasized by the following figures which have been supplied to us : Of members of the Seamen's Union (sailors and firemen, boys, and ordinary seamen), and referring only to small coastal, intercolonial, and transpacific ships, approximately 900 are in employment and between 1,100 and 1,200 are unemployed. Transport by coastal vessels has met with severe competition from the two other forms of transport—road and rail. The bunker-coal trade which formerly provided considerable employment has been seriously reduced, firstly, owing to the growing use of oil fuel, and, secondly, by reason of the disparity in the rate of exchange as between England and Australia and England and New Zealand. Employment on British Ships. —The suggestion has been made to us that as British ships carry large consignments of New Zealand produce the companies concerned might be induced to include several New Zealand boys in the ship's

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