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In addition, a subsidy will be paid on the construction of approved starter-rooms and the insulation of curing-rooms in factories, and also on the purchase of new and up-to-date approved equipment of New Zealand manufacture for both factories and supplying dairies. It is confidently expected that this scheme will not only further stimulate the building and related trades, but will also result in a revival of the metal-working and engineering industries in which there are at present a considerable number of men unemployed. The Unemployment Board hopes to bring back into useful employment many of these men, and at the same time the modernizing of dairy factories and farms should have a very beneficial effect on the dairy industry, with consequent improvement in the quality of the Dominion's dairy-produce. VALUE OF RELIEF WORK. Reference to other sections of this report and to the various tables in the Appendix discloses that the Board has not relaxed its efforts to obtain the best possible results from the enforced employment of large numbers of men on so-called " relief works." It has been the Board's policy always to arrange " relief " employment on the most satisfactory terms for the men themselves and at the same time to conserve the unemployment funds within reason. Recognizing the importance to the Dominion of its primary industries, first consideration is usually given to placing unemployed in suitable work, preferably on a full-time basis at standard rates of pay, where some definite benefit will accrue to the country as a whole. Cost is not always the major consideration and very often a higher rate of subsidy from the Fund is granted for well-recommended work which will show some return to the community, in preference to arranging ordinary part-time relief employment under Scheme No. 5. For such work as irrigation, land-drainage, afforestation, access to backblocks, and to potential gold-mining localities, every encouragement has been given to registered unemployed, both from towns and from country districts, to accept employment where their labours will result in real assets. In the section dealing with farm subsidy schemes, figures are quoted to show the increased stockcarrying capacity of farm lands cleared by unemployed labour under certain schemes. It would be impossible to give a comprehensive summary of the assets created by development-work carried out under all the Board's schemes and the many variations thereof, but the statement published in the Appendix to this report (Table VII) contains some very illuminating figures showing the extent of reproductive work carried out by relief labour under the control of the Public Works Department and rural local bodies from Ist January, 1932, to 30th June, 1934, a period of two and a half years. The principal classes of " relief works " with relevant figures are as follows Formation, widening, or metalling of backblock roads (dray width), 3,478 miles ; land-drainage (excavation of drains), 1,978 miles ; river-improvement work, 330 miles ; fencing, 617 miles ; irrigation (race construction and widening), 252 miles ; track construction and repair (gold-mining areas), 172 miles ; scrubcutting, 153,445 acres ; stumping and logging, 16,022 acres ; eradication of noxious weeds, 43,117 acres ; bushfelling, 4,709 acres ; marram-grass planting, 13,984 acres ; construction of water-races, fluming, &c., for gold-mining, 8,000 chains. Evidence of the continued policy of the Board in arranging relief employment upon reproductive work to the greatest possible extent is shown by the following figures, which indicate, as at 6th July, 1935, the number of men working under schemes connected directly or indirectly with the development of the Dominion's primary industries. Number of Men employed Schemes. at 6th July, 1935. Farm subsidy schemes .. .. ■ • • • • • .. 3,522 Public Works, State Forest, and local-body camps .. .. ..2,317 Public Works full-time standard employment (subsidized) .. .. 3,157 Gold-prospecting schemes .. .. • • • • • • .. 3,362 Scheme No. 5 — Part-time .. .. .. •• •• •• 8,311 Full-time .. . • • • • • • • • • • • 2,744 Miscellaneous .. .. • • • • • • • • • • Total .. .. •• •• •• •• 23,568 It will be observed that this figure includes both full-time and part-time workers under Scheme No. 5. The total of 23,568 on reproductive work represents 55 per cent, of all males actually working on relief schemes at that date. This calculation is based on a total of 55,568 males receiving some form of assistance from the Fund, less 12,842 on sustenance without work, leaving a balance of 42,726 actually working. In the above table some 8,311 males are shown as working part-time under Scheme No. 5 on reproductive work at 6th July, 1935. This number represents 33 per cent, of all Scheme 5 workers employed for rationed periods only. Although the totals on such Scheme 5 work have decreased very considerably during the last twelve months, mainly because of the transfer of some thousands of men to sustenance, the proportion of those remaining on rationed work and engaged in developing the country's resources has been well maintained. In fact, the following table, showing the

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