H—44

Whether or not licensing was to be continued was perhaps the footwear industry's most contentions issue during the year. However, in an official ballot conducted early in June, 1947, by the Bureau in collaboration with the New Zealand Footwear Manufacturers' Federation, the industry declared itself in favour of the continuation of licensing under a revised industrial plan by a 16-per-cent. majority. This revised industrial plan has been incorporated in the Industrial Efficiency (Footwear) Regulations 1948, which supersede the 1941 regulations. They provide for the appointment of a new Committee on a wider basis of representation and for the retirement of members each three years. (/) Appeals against Decisions of Bureau During the year 43 appeals against decisions of the Bureau were heard. Of these, 27 were successful and 16 were not upheld. Acting on medical advice, The Hon. Sir Francis Frazer relinquished the office of Industrial Appeal Authority. Unfortunately, he later passed away. Judge 0. G. Stevens was appointed as the Appeal Authority when Sir Francis Frazer retired. SECTION 7.—IMPORT LICENSING SYSTEM IN RELATION TO INDUSTRY The Department, in order to facilitate the co-ordination of domestic factory production with import demands, has continued the important function of making recommendations to the Customs Department on the applications for import licences covering industrial plant, raw materials, and consumer goods of types produced in this country which are referred for this Department's comments. During the past year more emphasis even than usual has had to be placed on restraining purchases from " hard " currency areas. This policy in many instances has required sources of supply to be sought in the sterling area where this alternative is available, but where " hard " currency areas are the only sources for materials necessary for essential purposes purchase from those areas is recommended. Our trade representatives overseas perform valuable service in locating supplies from new sources. SECTION B.—INDUSTRIAL RAW MATERIALS AND THE SUPPLY POSITION GENERALLY It can be stated that, in general, there has been some improvement during the past twelve months in the supply position of most of the raw materials which are required to maintain our industries. Deliveries have been more regular and delays in executing orders less protracted than formerly. This has not been possible without strenuous efforts on the part of the Department and its representatives overseas, and many constant and personal approaches, both through official and commercial channels. The Government, in its endeavours to ensure continuity of supply, sent an official Mission to th.e United Kingdom in February of this year, led by the Secretary of the Department, Mr. G. W. Clinkard, and all aspects of our position were represented to the United Kingdom Government and the individual Departments concerned, such as the Board of Trade, Ministry of Food, and the Ministry of Supply. The Mission accomplished excellent work, and its arrival in the United Kingdom was most timely. Certain materials, however, continue to be in short supply throughout the world, and, as was the case last year, these are subject to international allocation or quota controls in the supplying countries. The interests of New Zealand have been carefully watched by close liaison with the authorities in the countries administering these controls.

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