8.—6

Increasing attention is being paid to large-scale operations, as against prospecting on small individual claims, with tlie object of providing permanent employment in the industry for increased numbers of men. Near Hokitika an old water-race is being reconditioned and en tended with a view to working a large area of virgin alluvial ground, a project that is employing some two hundred men full time at standard rates of wages, which are paid by the Board. On completion it is estimated by experts that constant and profitable employment on sluicing operations will be provided for about one hundred and fifty men over a period of ten to fifteen years. The developments in dredging are most encouraging. Fifteen dredges are operating at present, and, from information received by the Mines Department, it is anticipated that the number will be increased to twenty-three in 1936 and probably forty in 1937. „ The dredges of to-day, compared with those operating at the beginning of the century, are much larger and more powerful. In 1902, which can be taken as the peak of the previous dredging boom, there were 201 dredges in operation, averaging per dredge 16 h.p., or a total of 3,216 h.p., but the fifteen operating this year total approximately 2,500 h.p. Even larger dredges than those now operating are contemplated, and by .1937 it is quite possible that the horse-power of the dredges then in operation will total 12,000. The Building Subsidy Scheme (No. 12) which has now been in operation for: over twelve months has proved a very successful method of stimulating industries in general, as it is estimated that, directly and indirectly, over 87 per cent, of the cost of building-construction comprises wages paid in New Zealand. Up to the 20th July, 1935,4,960 applications had been approved, involving subsidies totalling £229,356. The 'actual value of the work put in hand a§ a result of the granting of subsidies under this scheme amounts to £3,208,361, of which £2,791,274 is estimated to represent the amount which will be directly and indirectly paid in wages in Nevv Zealand. In other words, the expenditure by the Unemployment Board of £229,356 represents only 8-21 per cent, of the total wages paid to workers employed as a result of the introduction of this scheme. During the year the scheme was extended to cover alterations and additions to dwelling-houses, and recently a further scheme on similar lines has been introduced to give employment to workers in the engineering and metal-working trades. This latter scheme (B. 2) provides for the granting of subsidies to dairy factories and dairy-farmers on the purchase of machinery manufactured in New Zealand calculated to improve the quality of the Dominion's butter and cheese output. Concerning the financial position of the Unemployment Fund, it may be mentioned that in spite of the reduction in taxation to lOd. in the pound from Ist October, 1934, and the exemption from wages-tax granted to persons under twenty years of age (which applied from 12th November, 1934), the total revenue from unemployment taxation exceeded that of the previous year by £163,350. The actual receipts from taxation amounted to £4,590,219, of which £419,165 was derived from the levy, £2,821,824 from tax on salary and wages, and £1,349,230 from the special charge on " other income." The tax on salary and wages yielded less than for the previous year. This of course is accounted for by the reduction in taxation, and by the exemption granted to persons under twenty. But for these alterations it is estimated that the receipts for the last year would have shown an increase of about £190,000. Such an increase represents an addition to the Dominion wages bill of approximately £3,800,000. . . The receipts from the special tax on " other income " (after allowing for revenue received in advance, £38,225) amounted to £1,311,005, or £204,403 in excess of the previous year. Allowing for the reduction in the rate of tax to lOd. in the pound for the second half of the year, this result indicates an increase in incomes " other than salary or wages " of over £6,500.000. The Unemployment Board commenced the year with a cash balance of £621,518, and with the £4,590,219 from taxation, and other miscellaneous receipts from' interest, repayments of loans, &c., it had. available for the provision of unemployment relief the sum of £5,245,078.

Building subsidy.

Assistance to engineering trades, &c.

i Finance. L

f Revenue. 3

3—B. 6.

17