H—l9A

Canteen staff serving overseas are employed under full service conditions. The Board's policy has been to render service, but through the necessity to fix selling-prices at a level which discourages personnel from purchasing goods for resale outside the Services, profits totalling more than £1,000,000 have been earned. In all cases, canteen prices are equal to or lower than those charged in chain stores for similar articles. After making periodical distributions of profits to the Services, an undistributed balance of £869,398 remained at 31st March, 1946. Official price-lists are frequently revised, and these lists are prominently displayed for the information of canteen patrons. Close supervision of the operation of wet canteens ensures that a well-conducted service is maintained under pleasant and hygienic conditions. The Board continues to operate motion-picture programmes in the more isolated camps, despite the small attendance in view of the reduced Service personnel. Excellent relations are enjoyed between the Board and the commercial community, also with Government Departments. The disposal of surplus assets has been conducted on commercial lines, and the various items of equipment are realizing satisfactory prices. Where possible, preference has been given to discharged servicemen in disposing of equipment in short supply. The Canteen Service for the Forces in Japan is operated by a combined Canteen Service for all British Commonwealth Occupation Forces under the auspices of the Australian Army Canteen Service. Large quantities of foodstuffs and miscellaneous canteen requisites, including ice-cream-manufacturing plants, are being shipped from New Zealand by the Board and will be of considerable assistance in providing a firstclass service. In this connection the Canteen Board is acting as buying agents for the Australian Army Canteen Service. The sales figures shown below indicate the extent of the Board's operations over the war and post-war period, whilst percentages are shown in tabular form for comparative purposes :

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(l) (2) (3) (4) (5) (6) Administration Year ended 31st March, Sales. Net Profit. Gross Profit. AU Expenditure. Net Profit. Expenses included in Expenses. £ £ Per Cent. Per Cent. Per Cent. Per Cent. 1940 . 85,626 11,608 26-88 13-32 13-56 3-83 1941 . 338,623 51,066 29-08 14-00 15-08 1-97 1942 . 574,739 87,739 26-67 11-40 15-27 0-95 1943 . 1,742,871 278,514 21-99 6-01 15-98 0-40 1944 . 2,284,962 307,101 18-69 5-32 13-37 0-36 1945 . 1,810,897 265,865 20-57 6-09 14-68 0-39 1946 . 1,151,944 143,071 18-60 7-56 12-42 0-59 7,989,662 1,144,964 Total net p rofit Distributed 275,566 Undistrit rat ed 869,398