H.—44.

over the utilization of steel and steel products. Procurement of non-ferrous metals has also presented some difficulty, but the Ministry has managed to purchase some supplies of ingot metals, and these have been released to manufacturers as necessary. Rigid control is exercised over rubber-manufacturing companies, and each firm engaged in the industry is obliged to obtain the Factory Controller's sanction to the use of the raw materials for production of a restricted range of commodities. The use of paper has been restricted in so far as wrapping and other purposes are concerned, while the size of newspapers has been very greatly reduced. Action in the way of rationalizing the boot industry and the woollen and clothing industries has resulted in very marked increases in production to meet the demands of the armed forces, and to some extent this has affected civilian supplies. The increased boot programme has involved an additional call on tanneries for special types of leather, and extensions are under way to meet this enhanced demand. Building Control. —The defence building programme necessitated the slowing-down in non-defence building, and building permits for work, the estimated cost of which was expected to exceed £1,500, were approved only where it could be shown that such works were essential and associated with the Dominion's war effort. Shortages of various essential materials and, over all, a shortage of labour had to be met, and with this object in view various notices were issued by the Building Controller, the most far-reaching of which was a total prohibition of the undertaking of constructional work without the previous consent of the Building Controller. This control is affected through local authorities. Returns of constructional plant and employees engaged in various works have also been called for, and labour is made available to the more important works as required. Timber Control. —The demand for timber for air-raid shelters, boxmaking, &c., has been phenomenal, and increased hours are being worked in the timber industry. Control notices have been issued stipulating the names to be applied to the different kinds of beech timber in order to prevent the sale and supply of unsuitable classes for munitions work in both Australia and New Zealand. To conserve supplies of imported timbers for specific purposes notices have been issued covering Australian hardwoods and the resawing of Douglas fir (Oregon pine). A further control notice restricts the use of insignis pine to the manufacture of wooden containers for food products, munitions, &c., while under the Second-hand Fruit-case Control Notice 1942 fruitgrowers may reuse good second-hand cases. Mining Control. —Coal-production for the period has constituted a record, and every endeavour has been made to build a reserve supply of suitable coal in the North Island. Dumps have been arranged at the main ports to cover shipping needs, including requirements of the Navy, while at the chief steamgenerating stations in the North Island stocks have been built up. Production of scheelite and mercury is being expanded. Electricity Control.—Economy in the use of electricity has been found necessary, and a Committee acting with the Electricity Controller has been functioning in a successful endeavour to meet the position due to non-completion of extensions to the Government generating-capacity. Supplies of poles, transformers, conductors, and hardware used in the industry have been maintained as well as circumstances permit, but to conserve supplies all extensions of existing lines or erection of new lines are carefully reviewed by District Advisory Committees. To meet essential demands for plant a survey has been taken of existing equipment, and from time to time it has been found necessary to direct transfers of certain of the equipment available. Oil Fuel Control. —Bulk storage for motor-spirit has been expanded, while separate reserves for the Army for use in emergency have been arranged. Petrol rationing has been intensified, releases being made through the coupon scheme to private motorists and by a license to business and other users. Medical Supplies Control.—Extensions to existing hospitals and the erection of emergency hospitals throughout New Zealand have been responsible for a very heavy call for hospital equipment, and a good deal of work has been involved in ensuring that these hospitals are adequately equipped and supplied with essential materials. Stringent control of some of the more important drugs has been necessary, and every endeavour is being maintained to import into the Dominion adequate reserves to meet possible calls. Food-control. —While certain imported brands of foodstuffs do not appear 011 the shelves of retail and wholesale establishments, it can be said that sufficient supplies of normal lines have been available to the public, notwithstanding the heavy drain imposed by the needs of the armed Services, both within New Zealand and overseas. Large orders have been placed with the co-operation of merchant houses for what can be termed reserve stocks of the more necessary foodstuffs, and these are being stored in strategic inland points in the Dominion. Every endeavour has been made to import adequate forward stocks of tea and sugar, which have now been rationed. Wheat, Flour, and Bread. —Sales of flour and meal during the past year reached the record total of 159,296 tons, valued at £2,675,000. Of this quantity, 10,382 tons were wheatmeal. The quality of the flour has given widespread satisfaction. Sales of wheat-germ amounted to about 12 tons per month. The wheat produced from the harvest of 1941 amounted to 8,305,865 bushels from 243,197 acres, at an average yield of 34-15 bushels per acre. The consumption was very high, being 9,600,000 bushels. This was an average consumption of 5,000 tons of wheat per week for all purposes. The poultry industry took an average of almost 1,000 tons per week. The difference was made up by importations from Australia. This year's harvest is expected to yield 8,600,000 bushels from 258,000 acres, and to bridge the gap between production and estimated consumption about 1,000,000 bushels will be imported. A further 1,000,000 bushels to build up reserves has also been arranged for.

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