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other every person in New Zealand, and I feel it due to the staff to say that the service given to the public generally meets with their whole-hearted approval. Although the work of the Department is of an unusually technical nature, it seldom happens that emergencies are not overcome promptly and to the satisfaction of the public. Rarely, indeed, does one hear of any complaint of failure in service, but one frequently hears with pleasure references to the courtesy and the willingness of the staff. The past year has been abnormal in that a record volume of business has had to be met, a large increase in staff has been in training, new means of development have been devised and put into operation ; but with it all a service one can be proud of has been given to the public of New Zealand. I desire to add my commendations to those of the public and to express my appreciation of the excellent service given by the staff. The many-sided activities of the Department can be undertaken only by a staff highly proficient in the performance of a wide range of duties. Every effort is being made to equip officers with the special knowledge required by them in the conduct of those duties. Overdue since 1934, the regrading of the Service which Government authorized last year was carried out during the year with effect from the Ist April, 1937. Never before in the history of the Department has such a comprehensive valuation of officers' services been undertaken or have such widespread improvements in the remuneration of officers been made. With the raising of the salary scales of the lower-paid officers and the advancement by way of promotion of about 2,500 officers, the staff as a whole has every reason to be satisfied. In a huge organization in which promotion is by merit alone it is natural for some officers to consider that their services have not received due recognition, but the machinery exists for such officers to represent their cases to the Appeal Board for further consideration. Other staff improvements effected during the year include increases to officers in receipt of the adult wage allowance, the extension of the principle of paying lodging-allowance to young officers who are not able to reside at home, the abolition of the appeal fee, the payment of salaries fortnightly, the admission of temporary employees as contributors to the Public Service Superannuation Fund, and the extension of the payments made to sick officers from the Sick Benefit Fund. REOPENING OF DEPARTMENTAL CORRESPONDENCE SCHOOL. In view of the large increase in staff during the past few years and of the recent revision of the syllabuses of technical examinations, it was decided to reopen in May of this year the departmental correspondence classes which for a nominal fee afford officers the tuition necessary to enable them to increase their technical knowledge. The classes were discontinued in 1933 owing to the comparatively small number of officers who at that time required assistance in this direction. REDUCTIONS IN EMPIRE CABLE RATES. As an outcome of a conference of representatives of Empire Governments which took place during the Imperial Conference in London last year, and at which New Zealand was represented by the Director-General of the Department (Mr. G. McNamara, C.8.E.), the cable rates to Empire countries were reduced on the 25th April, 1938, to a uniform charge of Is. 3d. a word to all places to which the full rate was previously above that level. Code telegrams, deferred telegrams, and letter-telegrams are now charged for at two-thirds, one-half, and one-third respectively of the new full-rate of Is. 3d. a word. Examples of the reductions in the full rate from New Zealand to the more important Empire countries concerned are as follows Destination. Previous Full-rate New Full-rate per Word. per Word, s. d. s. d. Great Britain and Ireland . . ..18 13 Canada .. .. .. ..16 13 South Africa .. .. .. ..20 13 India . . . . . . . . 210 13 Straits Settlements . . . . . . 2 10 13

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