H.—l4.

The total number of misfits is relatively small. It is a matter of experience that in the great majority of eases there is a correlation between success in an examination and potential aptitude for work in the Service. During the year in only twelve cases was it necessary for the Commissioners to annul the appointments of probationers. In some cases probationers were permitted to resign. Public Service Board of Appeal. There were four sittings of the Board during the year ended 31st March, 1938, to determine appeals against non-promotion to advertised positions in the Service. Eighty-five decisions were given by the Board, as follows —Non-promotion appeals : Allowed, 3 ; not allowed, 70 ; do not lie, 1 ; withdrawn, 11. There were no appeals before the Board against reduction in status or dismissal from the Service. An election of officers to represent the Service as members of the Appeal Board, was held in May, 1937, when, as the result of a ballot, Messrs. A. S. Houston (Secretary, Department of Agriculture), and A. E. Reynolds (Clerk of Magistrates' Court, Justice Department, Wellington) were du y elected. At the beginning of the present year the Chairman of the Public Service Board of Appeal, Colonel J. J. Esson, C.M.G , found it necessary on account of the pressure of private affairs to resign his position. Colonel Esson has for over twelve years ably filled this position with complete satisfaction to all concerned, and his resignation was received with regret. The valuable services rendered by Colonel Esson in this connection were greatly appreciated. The appointment of a Stipendiary Magistrate to the position of Chairman of the Public Service Board of Appeal has for many years been one of the aims of the New Zealand Public Service Association. Following the resignation of Colonel Esson, Government appointed Mr. W. F. Stilwell, S.M., Wellington, to the position of Chairman of the Board as from 12th February, 1938. The present constitution of the Board is Messrs. W. F. Stilwell, S.M. (Chairman) ; J. H. Jerram (Government nominee) ; A. S. Houston and A. E. Reynolds (representing the Public Service). The major task of the Board is to deal with some five hundred appeals filed by officers following the issue of the regrading list in December, 1937. The Board commenced its circuit sittings throughout the Dominion to deal with these appeals on 18th March, 1938, and it is not expected to finish its task before the end of August. Before its sessions commenced the Board heard legal argument and decided that certain appeals " did not lie." Some Points arising out of Appeals lodged in connection with the General Regrading of the Public Service. Certain notices of appeal lodged by officers against their gradings from Ist April, 1937, as determined by the Public Service Commissioners did not disclose any grounds for appeal. Some dissatisfaction has been expressed by certain officers regarding this matter. It is therefore thought desirable to outline the reasons why such appeals did not lie. (a) Date as from which Regradings are Effective. —Section 21 (2) of the Appropriation Act, 1925, provides that the Commissioners' decision in regard to the date of any regrading is final and conclusive. In this connection it is usual to require officers to serve at their present salaries for twelve months before proceeding to the next salary step, even when advancement to the next salary step involves promotion to , another grade. This follows the procedure outlined in section 25 of the Public Service Act, 1912, regarding annual increments. (b) Appeals against the Promotion of other Officers. —In a regrading it frequently happens, that of several officers graded in the same class, the duties and responsibilities of possibly only one or two merit advancement for the officers holding these positions to a higher class. The officers who have not been so advanced have no right of appeal against their non-promotion to the offices regraded as there are no actual " vacancies " and no " provisional appointments

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