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8.—6.

the same return for that portion of their output sold on the local market as they received for butter sold for export. Producers and consumers have benefited by the removal of a number of anomalies and undesirable practices which have affected the trade and prices for many years. The provision of adequate supplies of butter to all districts have been provided for, and this, together with uniform grading standards, has given that measure of protection to the trade and to public alike which, although so desirable, had formerly been lacking. The year under review has been a successful one from a trading point of view. With the opening of the new branch in Auckland and the establishment of butter-patting facilities there, the Division is now in a position to prepare butter for the local market in the two main centres of the Dominion and to provide a hygienic daily supply for distribution to retailers. Early this year the Division assumed the responsibility for the handling and distribution of bananas and imported citrus fruits and, although this scheme has been operating for a short period only, the improvement in marketing conditions has been very gratifying. Considerable attention has been paid to the development of the market within the Dominion for locally-grown fruit. This is exemplified by the advertising campaign which was so successfully carried out by the Division in respect to apples and pears. The results achieved in this direction have more than justified the action taken and have assisted materially in the disposal of an abnormally large crop of these two fruits during this season. The activities of the Division have been extended to honey, and, with a view to stabilizing the industry, the Government acquired the assets of the producer-company known as New Zealand Honey, Limited, Auckland. Through this organization producers were offered a pro rata advance of 4jd. per pound on all honey forwarded to its grading and blending depot, and this, in conjunction with sounder marketing methods, has in no small measure resulted in a much improved position in so far as beekeepers are concerned. The Division has operated in close contact with the Honey-export Control Board with a view to promoting sales in various countries where New Zealand has important markets. Last season the Division supervised the export of eggs by offering to producers Is. Id. per dozen for all eggs forwarded for export. The actual quantity sent overseas was not very large, but the action taken had the effect of stabilizing conditions in the Dominion during the " flush" period. In addition, close supervision was exercised over all egg-pulp contracts, giving purchasers a degree of confidence that had not existed previously. The Division interested itself in the marketing of bobby calves, and recently prepared regulations governing this trade. In any district where 80 per cent, of the bobby-calf producers are in favour of a pool scheme of marketing, provision has been made for the setting-up of an elective Committee to control the marketing of calves within the particular area concerned. These Committees are producer-controlled and already many requests have been received from producers for assistance in carrying out orderly marketing in this important phase of the dairy industry. The Division has also been a potent factor in improving the marketing of various products, amongst which may be mentioned kauri-gum, maize, hops, and small and soft fruits. HOUSING. As pointed out in last year's Budget, measures designed to effect a more equitable distribution of the national income are very closely related to the provision of adequate housing facilities. The surveys which have been carried out by local authorities in terms of the Housing Survey Act, 1935, have indicated a graver social problem than was appreciated except by the comparatively few in actual contact with the position. The results of these surveys indicate very clearly the inseparable connection between the incomes of the people and the amenities of life which they are able to enjoy.

Imported fruit.

Local fruit.

Honey.

Eggs.

Bobby calves.

Housing surveys.

6

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