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acquired two newly-built vessels, the " Komata" and the " Koromiko," each of 5,000 tons, and two larger vessels, the "Wairata" and the " Wairimu," each of 7,500 tons. These additions should relieve the position somewhat in the future. A feature of the trans-Tasman service has been the re-entry of Messrs. Sleigh and Co.'s " James Cook" into the timber trade. Later the same company's vessel " Matthew Flinders " will also take up this run and thus assist in relieving the difficulties which have persisted in shipping hardwoods out of Australia and our softwoods to Australia. SECTION 10.—INDUSTRIAL LABOUR Most fields of industry continue to suffer from the disability of labour shortage, although the intensity of the shortage in particular cases varies not only as between the different industries, but also as between the different centres and according to whether the demand is for male and female labour. For example, the woollen-mills are very badly placed in respect of their women operatives. Difficulties in obtaining raw materials have in certain cases made the demand for labour less intense than otherwise would have been the case. As a means of meeting the problem of labour shortage many industrialists are installing, where possible, additional mechanical aids or are making such internal reorganization of their facilities as will utilize more effectively the labour force available to them. Prospects for the future are improved by the arrival of immigrants. SECTION 11.—INDUSTRIAL BUILDING AND POWER Government policy in giving first priority to housing construction makes it necessary to continue the deferment of industrial and commercial building except for the most urgent of projects. Some relief is being given by the allocation for industrial use of space in buildings erected for war purposes, but it is obvious that a heavy programme of work on new construction, alterations, and repairs will follow the relaxation of the present necessary controls affecting building activities. Additional power-supply from new generation units when brought into operation should ease that aspect of manufacturers' problems. SECTION 12.—DECENTRALIZATION OF INDUSTRY AND DEVELOPMENT OF INDUSTRIAL ESTATES The advantages of establishing manufacturing units in localities other than the main centres have for some time provided the basis for advice from this Department that new factories (where other factors were not an over-riding consideration) should he set up in provincial towns. The attendant advantages of this course are being appreciated by an increasing number of manufacturers who not only have found recruitment of labour less difficult, but who see the desirability of arresting the drift to centres already congested and of easing the strain on housing, gas, electric power, water, and transport services in those centres. Another aspect of the location of industry which continues to have the active attention of the Department is the development of industrial estates. With Government approval of a policy of acquiring and developing an area before leasing it for industrial purposes, the Industrial Areas Committee, comprising representatives of

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