F.—l.

STATEMENT OF FINANCIAL OPERATIONS AND BUSINESS OF THE DEPARTMENT FOR THE YEAR ENDED 31st MARCH, 1939. RECEIPTS AND PAYMENTS.

The receipts and payments of the Department for the financial year 1938-39 are shown in the following account: — Receipts. Payments. £ s. d. £ s. d. £ s. d. £ s. d. Balance forward .. .. 42,404 15 2 Salaries .. .. 2,322,762 0 8 Postages .. .. 1,420,545 2 7 J Conveyance of ocean and Money-order and postal- airmails .. .. 123,893 12 10 note commission .. 92,487 17 11 Conveyance of inland mails 150,690 15 2 Private box and bag rents Conveyance of mails by rail 105,192 16 4 and rural-delivery fees.. 58,754 18 9 Maintenance of telegraph Miscellaneous receipts .. 521,231 5 10i and telephone lines .. 248,436 510 Paid telegrams .. 341,486 10 Renewals and replacements 255,188 16 11 Paid tolls .. .. 695,730 13 0| Motor services and workTelephone - exchange shops .. .. 118,196 0 6 receipts .. .. 1,557,327 7 Maintenance of Post and —— 4,687,563 15 J.o£ Telegraph buildings .. 48,592 11 2 Miscellaneous .. .. 562,095 2 5 Interest on capital liability 588,000 0 0 Sick Benefit Fund .. 6,310 0 0 — 4,529,358 1 10 Renewal and replacement of Assets Fund (investment) .. .. .. •• 160,000 0 0 Balance carried down .. .. •• 40,610 9 2| £4,729,968 11 0| £4,729,968 II 0J £ s. d. Balance brought down . . .. •. 40,610 9 2£ The total casli value of the transactions of the Department, inclusive of the above, amounted to approximately £286,000,000. STAFF. The steady expansion of the Department's business referred to in previous reports is again reflected in the staff figures in respect of the permanent staff, which during the year was increased by 447 officers. In view of the widespread changes and improvements effected in the preceding year on the occasion of the reclassification of the Service, it was not to be expected that there would be any substantial alterations in the salary schedules then decided upon by Government; but the question whether officers who at the reclassification were placed on an intermediate salary-step were to advance to the maximum of the class was considered, and towards the close of the year it was decided by Government to allow a limited number of such advancements. Although the improvement effected in this way may not have been all that officers expected, the fact that there has been a partial movement in the direction indicated will be viewed with satisfaction by the staff as a whole. A feature of the staff activities during the year was the number of retirements from the Service in accordance with the accepted policy of retirement on completion of forty years' service. Several senior officers of the Department were concerned, and the filling of their positions, together with consequential vacancies, has opened additional avenues of advancement for officers awaiting promotion. The Appeal Board in the course of its sittings during the year reviewed practically the whole of the Department's policy in connection with the 1937 reclassification, and the results of the Board's deliberations created a good deal of interest among officers generally. Once again the extensive and efficient organization of the Department and the versatility of its staff have been recognized in Government's decision to entrust to the Post Office the work in connection with the registration of youths and females under the Social Security Act. In addition, the Department will be required to act as collecting-agent on behalf of the Social Security Department, and in many instances it will pay the benefits due under the Act. That the additional work will be carried out efficiently, there is no doubt. The organization of the Department is such that any new work can be handled smoothly and expeditiously.

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