F.—l.

STATEMENT OF FINANCIAL OPERATIONS AND BUSINESS OF THE DEPARTMENT FOR THE YEAR ENDED 31st MARCH, 1938. RECEIPTS AND PAYMENTS. The receipts and payments of the Department for the financial year 1937-38 are shown in the following account: — Receipts. Payments. £ s. d. £ s. d. £ s. d. £ s. d. Balance forward .. .. .. 41,205 11 8 Salaries .. .. .. 2,152,618 3 9 Postages .. .. .. 1,274,834 9 6 Conveyance of ocean and air Money-order and postal-note mails .. .. .. 101,206 2 4 commission .. .. 78,675 8 6 Conveyance of inland mails.. 137,976 19 5 Private box and bag rents and Conveyance of mails by rail .. 99,330 15 11 rural-delivery fees .. 58,049 16 7 Maintenance of telegraph and Miscellaneous receipts .. 464,930 0 2J telephone lines .'. .. 160,792 0 1 Paid telegrams .. .. 329,905 3 6J Renewals and replacements .. 283,978 7 1 Paid tolls .. .. 637,807 310 Motor services and workshops 100,298 15 7 Telephone-exchange receipts 1,458,041 19 9 Maintenance of Post and Tele4,302,244 1 11 graph buildings .. .. 58,227 15 11 Renewal and replacement of Miscellaneous .. .. 495,229 110 Assets Fund '(reduction of Interest on capital liability .. 590,000 0 0 investment) .. .. .. .. 140,000 0 0 Sick Benefit Fund .. .. 6,104 0 0 4,185,762 1 11 Paid to Consolidated Fund .. .. .. 255,282 16 6 Balance carried down .. .. .. 42,404 15 2 £4,483,449 13 7 £4,483,449 13 7 £ s. d. Balance brought down .. .. .. £42,404 15 2

The total cash value of the transactions of the Department, inclusive of the above, amounted to approximately £295,000,000. STAFF. The year under review has been an eventful one for the staff. The regrading promised by Government with retrospective effect from the Ist April, 1937, was awaited with expectancy by all, but much preliminary work had to be done before the many proposals noted for review in connection with the reclassification of the Service could be finalized, and it was late in the financial year when the general announcement was made. Authority was then given, however, for the immediate payment of all increases authorized. Viewed as a whole the regrading, which was the most comprehensive in the history of the Service, has benefited a very large proportion of the staff. Indeed, there are few officers in the Service who have not received additional remuneration, and the staff generally have reason to be well satisfied with the treatment they have received in the matter of promotions and improvements to the salary schedules. Not for many years have officers been so favourably placed in the matter of remuneration. The proportion of promotions to the total numerical strength of the staff was relatively large, and it can now be said that the percentage of officers in receipt of salary above the rank and file compares favourably with the position in this respect in other State Departments. A notable change was the advancement of officers of the First Division beyond the maximum salary of Class VII without special examination qualifications instead of being held in Class VII. In effect this raises the rank-and-file maximum salary for the more efficient clerical worker to £335 per annum. The adoption of a uniform salary schedule up to the £230 mark for both First and Second Division, male officers has distinct advantages for the staff, particularly when promotion from the Second Division to the First Division is involved. In the past it was necessary, in order to maintain correct salary alignment in both Divisions, to grant only a nominal increment to the Second Division officer during his first year of service in the First Division. The change means that this course will no longer be necessary and that both First and Second Division male officers will make equal salary progress during at least the first seven years of service. The changes made have been so extensive that it was only to be expected that some sections would be more satisfied than others. The retention of messengers at a maximum salary of £250 per annum while postmen and other officers of the Second Division were permitted to advance to a maYimnm of £260 per annum was not viewed favourably by the messengers. This question, however, has been further considered by Government, and it has been decided that where the officers concerned are employed on duties other than those usually allotted to a messenger they will be appropriately designated and allowed to proceed to a maximum salary of £260 per annum in the same way as postmen. Opinions have also been expressed that the Department could have promoted a larger number of rank-and-file officers of the Second Division. This matter was subjected to the closest review by the Promotion Board, and wherever it was practicable for higher gradings to be given in the Second Division the claims of officers were considered. It must, however, be realized that the scope for improvement in this direction is definitely limited. The percentage of officers graded above the rank and file of the subdivision for postmen, messengers, and others is lower than in other sections, but not unduly low when the nature of the work performed is taken into account. It has to be remembered also that the normal avenue of advancement for the postman or messenger is to the First Division rather than to a higher grade of the Second Division. The number of Second Division officers who have entered the First Division over the past few years is considerableStatistics show in respect of other sections of the Second Division that a good percentage of officers is graded above the rank and file.

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