F.—l.

The regulation dealing with the appointment of engineering officers was amended in several respects. In its old form the procedure laid down operated too slowly with the result that the stage might have been reached where the staff of trained engineers would have been insufficient for requirements. The amendment aims at overcoming any such difficulties, for it will permit of the appointment of persons who, after reasonable training, could be employed on important engineering work. Provision was also made for the granting of time off to officers attending University lectures for the purpose of obtaining the M.Sc. degree. Previously time-off was granted only to officers desirous of obtaining the B.Sc. degree. The regulation governing the payment of lodging-allowance was altered to provide for payment being made to officers who are required to reside away from home in addition to officers who are transferred to meet the Department's requirements. Technical Examinations. Coincident with the decision to reopen the Correspondence School, the procedure followed in the conduct of Technical Examinations was reviewed, and it was decided to revise the existing syllabuses and to sectionalize them in order to enable officers to take the examinations in sections and to obtain credit for each section passed. Previously it was necessary to cover the entire scope of the examination at one sitting. t It is expected that the change will produce beneficial results not only in lightening the task of the candidate in preparing for the examination, but in making possible a more thorough preparation of the subjects by the candidates. There is little doubt that under the new arrangement officers will face the examinations with greater confidence and that a higher percentage of passes will be obtained. A point worthy of mention is that officers who in earlier years passed either the Lineman's Competency Examination or the Cable-jointer's Competency Examination are being credited with the equivalent of a pass in the Controlling Officer's Examination for Senior Foreman and will, therefore, be eligible for promotion to such a position without further examination qualifications. Passes in certain other competency examinations are being treated as equivalent to passes in sections of the new examinations. The position of the mechanician has been eased a good deal. The examination necessary to obtain promotion to the position of Foreman Mechanician is by no means difficult, as will be observed from a comparison of the old and the new syllabuses. Whilst it is true that the more difficult subjects will have to be surmounted if the officer is desirous of appointment as a Senior or Chief Mechanician, it should not be difficult under the new arrangements for a mechanician to qualify for promotion to the £335 grade. Steps have also been taken to safeguard the rights of those officers already fully or partly qualified for advancement. Temporary Employees as Contributors to Public Service Superannuation Fund. Section 30 of the Finance Act, 1928, makes provision for temporary employees of the Public Service to become contributors to the Public Service Superannuation Fund. It was decided in January to apply this provision to a number of temporary employees of the Department (as distinct from those whose employment is of a casual nature), and those who elected to become contributors to the Fund were given the option of contributing either from the date of commencement of the period of continuous temporary service then current or from the date of election to become a contributor. Employees becoming contributors to the Fund in this way are entitled to the same benefits as if their temporary employment were permanent. Fortnightly Pay. For the greater convenience of officers the frequency of salary payments was altered from twice monthly to fortnightly, commencing with the payment on Thursday, the 9th September. Sick Benefit Fund. Material financial assistance from the Sick Benefit Fund was given during the year to approximately 175 officers. From the Ist July officers on sick-leave without pay have had their superannuation contributions paid out of the Fund, and from the Ist April, 1938, officers on sick-leave on half-pay will receive similar treatment. The possibility of further extending the benefits was recently explored by the trustees who administer the Fund, and it has been decided that from the Ist April, 1938, the amount paid to officers on sick-leave without pay will be increased by 10 per cent., thus giving to these officers a payment equivalent to 60 per cent, of their annual salary during their absence from duty. Officers on sick-leave on half-pay will receive a payment equivalent to 10 per cent, on their annual salary provided the period of their absence exceeds one week. This means that all officers on sick-leave either without pay or on half-pay will now receive an income equivalent to 60 per cent, of their annual salary and, in addition, have their superannuation contributions paid. EXAMINATIONS. Officers who were candidates for departmental examinations during the year numbered 5,263, of whom 3,966 were either wholly or partially successful. SUGGESTIONS BOARD. Some 230 suggestions for the better working of the Department were received from officers during the year, and eight awards, involving a total sum of £19 10s., were made for meritorious proposals.

13