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The following changes have been given effect to during the period under review :— Cook Islands became a separate Department (previously shown with External Affairs Department), and later, with the External Affairs Department, was combined with the Prime Minister's Office. Industries and Commerce Department merged with Tourist and Publicity Department. Justice Department merged with Prisons Department. Native Trust Department merged with Native Department. Census and Statistics Branch transferred from Internal Affairs Department to Industries and Commerce, Tourist, and Publicity Department. Office of Registrar-General transferred from Internal Affairs Department to Justice and Prisons Department. Immigration Department merged with Labour Department. It will be noticed that during the year the staff of several Departments showed an increase. The reasons for these increases are as follow : — Customs Department : The increase in volume of work resulting out of the sales tax made necessary the appointment of additional cadets to this Department. Labour Department : The increase shown in this Department is more apparent than real. Officers previously loaned from other Departments were transferred to the Unemployment Section of the Labour Department. Land and Income Tax Department: Increased volume of work rendered necessary the appointment of additional cadets. Public Trust Department : Expansion of business and necessity for appointing juniors for training. Public Works Department: As will be noticed, the permanent staff of this Department was reduced by more than one-seventh between 1930 and 1934. Owing to increased activity during the year it became necessary to augment the staff. Transport Department: Here, again, the increase is more apparent than real. This Department previously had several officers on loan from other Departments, and these officers were transferred to the Transport Department during the year. Accommodation. As has been mentioned in previous reports, the lack of adequate centralized office accommodation in the main centres has had a serious effect on both efficiency and economy. The position will be improved in the near future when the new State Fire Building in Christchurch, the new Chief Post-office in Dunedin, and the new Government Life Insurance Building in Wellington are completed. It is understood that provision is now being made for new departmental buildings in Auckland and Wellington. The Government Buildings Accommodation Board continues to do good work, and with the active co-operation of officers of the Public \Y orks Department considerable economies have been effected. Mortgage Corporation op New Zealand. The Mortgage Corporation of New Zealand Act, 1934-35, provided for the establishment of a body corporate to be called the Mortgage Corporation of New Zealand, and, with exceptions, provided for the transfer of certain specified classes of securities from the Crown to the Corporation. Transfers have already been effected from the State Advances Department, and practically the whole of the staff of that Department is now working with the Mortgage Corporation. The officers are regarded as being seconded for duty from the Public Service for a period of up to two years, and their superannuation and other rights as public servants are being safeguarded for that period. In the event of the transfer to the Corporation of the securities at present being administered by the Lands and Survey Department similar arrangements will be made in regard to the staff of that Department affected by the transfer.

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