H.—3o

wo Honey. The Division is also conducting an inquiry into the marketing of honey, and is investigating a number of proposals for reorganization which have been put forward by various interests throughout the Dominion. The problem of marketing honey internally is, however, accentuated by the fact that a considerable proportion of the crop has to be exported annually from the Dominion to maintain our market for this product overseas. It has therefore become necessary to consider the export position along with that of the local market. Fruit. Following upon the recommendation of the Fruit-marketing Committee, the Division assumed responsibility in May last for the supervision and reorganization of the marketing of fruit and vegetables within the Dominion. In addition to a considerable amount of preparatory work the Division has taken an active part in assisting growers with a number of the problems, and has in some instances arranged contracts for the disposal of their crops. The organization of the fruit industry has been under review, and in the case of the citrus industry a special growers' advisory committee representing the three co-operative associations at Kerikeri, Auckland, and Tauranga respectively has been co-opted to assist the Division in its endeavours to improve the marketing and distribution of New-Zealand-grown citrus fruits. Considerable attention has also been paid to the question of imported fruits, particularly oranges, with a view to ensuring that adequate supplies of this commodity would at all times be available to the public throughout the Dominion. The establishment of the Internal Marketing Division by the Government has had a considerable influence on the marketing within the Dominion of primary food products, and has created a position whereby the trade in these commodities can be, competently organized. It is the policy and function of the Division not only to investigate the possibilities of improving marketing procedure, but also to determine and, if necessary, initiate through its own organization those methods which are calculated to bring about a more efficient distribution of these products, and thus narrow the margin of cost between the producer and the consumer. Appreciation. In concluding the first report on the new marketing procedure, the Government desires to express its appreciation of the efforts of Mr. Frank Picot, the Director of Internal Marketing, and his staff, who, by their splendid work, are making orderly marketing possible in the Dominion; and to pay tribute to _ the untiring efforts of Mr. George A. Duncan, the Acting Director of Marketing, and his staff in New Zealand; and to Messrs. H. E. Davis and J. W. Rodden and their staff in London. They have carried through a major alteration in marketing without ostentation or advertisement that in the opinion of the Government will give the dairy-farmer and those associated with him a security that he has not previously possessed. Minister of Marketing.

38