H.—l4,

Efficiency of the Service. I am pleased to report that the general standard of efficiency throughout the Service is high and that officers generally are well equipped to carry out their various duties. The larger Departments are regularly and frequently inspected by departmental Inspectors, and copies of their reports are forwarded to this Office. The results obtained from this source of inspection indicate that Departments are maintaining a high standard of efficiency. Copies of all reports by Audit and Treasury Inspectors are also supplied to the Public Service Commissioner. Since the appointment of Mr. Pearce, formerly Public Service Inspector, to the position of head of a Department on the 28th November, 1933, there has been no regular inspection by this Office, but it is recognized that it is not desirable that this position should remain unfilled for any length of time. Organization and Management. The Public Service Act in effect applies to all employees of the State except Judges of the Supreme Court, Stipendiary Magistrates, officers or members of the Military and Naval Forces, members of the Police Force, officers of the Post and Telegraph Department, officers of the Legislative Department, and members of the New Zealand Government Railways Department. The duties of the Public Service Commissioner are not confined to such matters as the appointment of staff, the classification of officers, and the general oversight over staff conditions. Reference to section 12 of the Public Service Act will show that he has other duties of far-reaching importance. This section requires the Commissioner to investigate the efficiency, economy, and general working of each Department both separately and in its relation to other Departments. Matters brought under review are as follows : — Improved organization and procedure ; Simplification of work and introduction of mechanical appliances ; Co-ordination of work ; Limitation of staffs to actual requirements ; Utilization of staff to best advantage ; Improvement in training of officers ; and Institution of standard practice and uniform instructions for carrying out recurring work. For practical purposes all Departments under the Public Service Act may be regarded as one large Department under the general control of the Public Service Commissioner, who is responsible for — (a) The general scheme of organization under which the staffs are required to do their work ; (b) The character of the personnel employed ; and (c) The methods of accounting and the office systems or business methods employed. In these matters the Public Service Commissioner works in close co-operation with the Treasury and the Controller and Auditor-General. Public Service Superannuation Fund. In previous reports reference has been made to the unsatisfactory state of the Public Service Superannuation Fund, which, in the near future, will not be able to meet its obligations unless some improvement is effected. The other State superannuation funds—i.e., Teachers' and Railways —are in a similar position. A sound pension scheme is essential in any well-ordered Service, and following on the report of the National Expenditure Commission a Bill was introduced during the 1932 session of Parliament in which provision was made to give effect to the

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