H.—l4.

of the normal inflow. When the economy strictures were removed an abnormal demand was made by all Departments to bring their staffs back to requirements. Parenthetically, it may be observed that the most grievious need of the Service to-day is for young men with three to six years' training and experience, but for obvious reasons the need cannot be supplied. The second reason for this record incoming of youths is the expansion of the Service. The numbers would be high even if we did not have to make good the short supply of the years previously mentioned. The Commissioners anticipated that the needs of the Service would not be met by the University Entrance Examination list, so they caused to be instituted again the Public Service Entrance Examination, which was discontinued after November, 1931, because it was misleading to hold an examination which purported to give entrance to the Public Service when the. Service was not appointing any one who succeeded in the examination. In November, 1937, the examination was held again after a lapse of six years. Of the 1,095 candidates who presented themselves for examination, 662 (including both sexes) passed. Difficulties are frequently experienced with youths who wish to enter the Public Service but whose parents are willing only that they should take their first appointment in the towns in which they reside. Naturally more cadets are required in Wellington than in all the other centres combined, so that it is not by any means possible in all cases to meet the wishes of parents and youths. The incidence of location is disclosed in the table set out below showing the distribution for last year : — Wellington .. .. .. . .384 60-2 per cent. Auckland .. .. .. . . 66 = 10-3 Christchurch .. .. .. 37 == 5-8 ~ Dunedin .. .. .. .. 16 = 2-5 ~ Other towns.. .. .. .. 135 = 21-2 The Commissioners, however, are always willing to consider cases where for good reasons it is desirable a boy should return to his home town, and as opportunity permits they are transferred thither. Incidentally, the convergence of so many youths puts a strain on the available boarding accommodation in Wellington, and our difficulties are intensified for this reason in staffing our Wellington offices. As will be readily understood, the average age of youths admitted to the Service has increased because of the lethargic tone of the employment market in the depression years which resulted in boys remaining at school rather longer than usual. In pursuance of Government policy for improved adult wages, the following scales now rule in the Public Service : — (1) £155 per annum at twenty-one years of age, irrespective of service. This applies to all employees except apprentices. (2) An increase of £10 in respect of each completed year (up to six) of permanent service at the age of twenty-one or thereafter, i.e. : — (a) £165 per annum at the age of twenty-one years if completed one year's permanent service, or on completion of one year's permanent service if beyond the age of twenty-one. (b) £175 per annum at the age of twenty-one if completed two years' permanent service, or on completion of two years' permanent service if beyond the age of twenty-one. (c) £185 per annum at the age of twenty-one if completed three years' permanent service, or on completion of three years' permanent service if beyond the age of twenty-one. {d) £195 per annum at the age of twenty-one if completed four years' permanent service, or on completion of four years' permanent service if beyond the age of twenty-one. (e) £205 per annum at the age of twenty-one if completed five years' permanent service, or on completion of five years' permanent service if beyond the age of twenty-one. (/) £215 per annum at the age of twenty-one if completed six years' permanent service or on completion of six years' permanent service if beyond the age of twenty-one. The amounts in excess. of scale salary necessary to bring remuneration up to the rates mentioned above are granted by way of allowances.

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