H.—l4.

An outline scheme to be administered from the Commissioner's Office has already been drawn up. It envisages— (a) The training or the completion of training of such public servants as have been away on war service : (b) Bringing each soldier as nearly as may be to the point of usefulness which he would have reached if he had not gone away, and that without the extra strain of having to do the ordinary day's work; at the same time, enabling him to bring himself up to date in both his general education and his departmental knowledge. Besides our own men, thought has to be given to the men who were not public servants before entering the forces but who will wish to find a career in the Public Service after demobilization, and the services of whom will be required to meet the staff needs of developing State services. These questions are now receiving attention, and it is intended that plans, having as their purpose the assistance of ex-servicemen resuming or commencing a Public Service career, shall be well settled and ready for operation when the time comes. Administrative Changes. —Public Service Commissioner's Office : Mr. J. H. Boyes appointed Public Service Commissioner on 14th October, 1941, vice Mr. T. Mark, deceased. Social Security Department: Mr. H. D. Smith appointed Chairman, Social Security Commission, and Secretary for War Pensions, on 7th November, 1941, vice Mr. J. H. Boyes. Mr. B. F. Waters appointed Director and Assistant Secretary for War Pensions, vice Mr. H. D. Smith, on 7th November, miMines Department: Mr. C. H. Benney, Acting Under-Secretary of Mines, was confirmed in his office of Under-Secretary of Mines on Ist April, 1941. Board of Appeal.—The Board sat in Wellington on three occasions during the year. Twentyseven appeals were heard, and, of these, one succeeded. Statistics. —It has been usual to publish several pages of informative statistics. It has been decided to save the paper that would be used in publishing these figures, and they are omitted from this report. Disciplinary Action. —Altogether eighty-five officers of the classified staff had to be punished for offences, of which seven cases were of dishonesty. Of these, four were dismissed from office and the others were penalized to a less degree. The other offences fall under the general headings of unsatisfactory work or conduct, and for these causes forty-nine have ceased to be officers of the Public Service, and the balance were penalized otherwise. Regrading of the Public Service.—The regarding of the Public Service last took place in 1937 and was therefore due to be undertaken this year in the normal course. There is no gainsaying the wisdom of the decision of Government to postpone the due time for a period not exceeding two years after the termination of the state of war now existing. Cost-of-living Allowance. —The cost-of-living allowance has been increased as from the 7th April, 1942, from the basic sum of £13 per annum announced in the last report, by a like amount. This latest allowance has been granted to all officers receiving up to £765 per annum, thus advancing considerably the salary limitation set upon the first allowance. Internal Examinations.—The usual programme of departmental, efficiency, and qualifying examinations was held. In all classes, 596 candidates presented themselves. Of these, 279 passed, 15 completed a pass, 3 gained a partial pass, and 299 failed. The efficiency tests will not be held again until the war is ended. Shorthand-typists' Examinations ; —

Efficiency—l am required by section 15 of the Public Service Act, 1912, to furnish Your Excellency with a report on " the condition and efficiency of the Public Service and of its proceedings." lam able to give you these assurances without reserve. My own observations and the reports of my Inspectors and departmental inspecting officers lead me to the conclusion that the Public Service has maintained its high degree of efficiency. In some respects work may not be as well done as it should be. That consequence is to be expected of a hastily recruited reserve staff and from the absence of thousands of trained personnel. However, all factors considered, I believe better service has never been rendered. Obituary— Mr. Donald Robertson, 1.5.0., the first Public Service Commissioner in New Zealand, passed away on the 31st May, 1942. He took office on the Ist January, 1913, having formerly been Secretary of the Post and Telegraph Department, and retired on 31st December, 1919. He it was who established the Public Service Commissioner's Office and formulated the general lines of policy upon which it has since operated. The removal of the Public Service from political control and the setting-up of an independent personnel administration, viewed as it was then with not a little distrust and misgiving, was the delicate task performed by Mr. Robertson with great acumen. Under his sagacious superintendence the modern Public Service in New Zealand was set firmly upon its course.

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Grade. Candidates. Passed. Tailed. Junior 1,304 648 656 Senior .. .. .. .. 678 265 413 Intermediate .. . . . . 122 58 64 Special . . .. . . .. 31 3 28