H.—44.

year ended 30th April, 1938. In every case a full examination of the particular industry is made, and the Bureau has only recommended that an industry be brought within the licensing provisions of the Act where it was convinced that licensing would be in the best interests of the industry itself and the consuming public in general. One industry (manufacture of phosphatic fertilizers—see section of report on this industry) was " de-licensed " during the year. The industries now subject to license are as under :— Manufacture of products consisting of a combination of asbestos and cement. Manufacture of batteries or cells, commonly known as dry cells. Manufacture and/or assembly of secondary or storage cells and batteries, commonly known as wet batteries, or any part or parts thereof. Manufacture of cement: Portland and other structural or building cement. The business of any chemist or druggist carried on by the keeping of any open shop or place for the compounding or dispensing of prescriptions. Taking of fish for purposes of sale (not salmon, trout, whitebait, or oysters). Export of fish, whether fresh or preserved (not salmon, trout, whitebait, or oysters). Manufacture of gas-meters. Importation and/or wholesale distribution of motor-spirit. Retail sale and distribution of motor-spirit. Taking of oysters from oyster-beds. Manufacture of pumps, or the assembly of parts thereof, for the distribution of motor-spirit. Manufacture of electric-ranges, including the assembly of parts thereof. Manufacture of rennet. Manufacture of rubber tires and tubes for all types of vehicles. Manufacture of wooden heels for footwear. APPEALS. The Industrial Efficiency Act provides that appeals may be made to the Minister of Industries and Commerce against any licensing decision of the Bureau. This right of appeal has been exercised by a number of applicants for licenses and by persons considered to have been materially affected by decisions of the Bureau. The Hon. Sir Francis Frazer, who, in accordance with powers given in the Act to the Minister, was appointed to inquire into and report upon the subject-matter of any appeal has heard seventy-nine such appeals during the year and reported thereon to the Minister. Of these appeals, seventeen were allowed and the Bureau's original decisions reversed.. INDUSTRIAL PLANS. Two industrial plans, prepared in accordance with Part II of the Industrial Efficiency Act, have been put into operation, and Industrial Committees to administer those plans have been appointed. The industries concerned are flax and pharmacy. Flax. The preparation by the Bureau and the acceptance by the industry of an industrial plan for the rehabilitation of the flax industry was mentioned in the last annual report. Since then the following Industrial Committee has been appointed by the Hon. Minister in accordance with the plan : — Nominees of — Government. —Dr. E. Marsden (Chairman), Department of Scientific and Industrial Research ; Mr. F. Johnson, Department of Industries and Commerce; Mr. E. J. Fawcett, Department of Agriculture ; Mr. P. T. Robinson, Employment Bureau, Palmerston North. Millers. —Mr. L. A. Neiderer, Gorge Road, Southland ; Mr. B. B. Wood, Christchurch. Growers. —Mr. A. H. Long, Kaingaroa, North Auckland. Manufacturers of Flax Products.—Mr. S. H. Maddren, Christchurch. Workers.—Mr. H. H. Podmore, Foxton. Unfortunately, the overseas market price for hemp fell to an extraordinarily low level shortly after the Committee commenced its duties, and much of the Committee's work has been concerned with the question of temporary assistance to growers and millers by way of subsidies and other aid during the period of low prices. There is still no indication of the market recovering. The Committee, however, has made good progress in regard to research and planting, although the benefits to the industry of this work cannot be enjoyed immediately. Pharmacy. The question of the preparation of a plan of reorganization for the pharmacy industry in New Zealand arose as a result of the parliamentary inquiry which was held in relation to petitions lodged by various interests, praying for protection against company or chain-store pharmacy. After the passing of the Industrial Efficiency Act the Bureau of Industry was requested to prepare a plan of reorganization for the industry, having in view the various problems which had been raised, and to make any recommendations to the Government for the taking of measures which would be of benefit to the industry while, at the same time, protecting the interests of the consuming public. In the meantime, and so as to hold the position until a plan could be prepared and placed before the industry for adoption or rejection, the industry was made subject to license under the Industrial Efficiency Act, 1936.

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