B—l3

: Consideration has been given to removing New Plymouth City from the operations ■of the Act, but before a decision is reached a further period of observation will be necessary. The importance of continuing the work is to be measured not so much by the number of infestatipns dealt with as by the necessity for ensuring that each infestation is controlled, and where possible eliminated, before it becomes the centre of an extensiveoutbreak. If this can be done the saving in the national economy will be very considerable. Staff With the close of another financial year the Board desires to place on record its appreciation of the assistance and co-operation it has received from its- administrative officers and staff, both office and field. The year has not been an easy one, and heavy staff losses by resignation and transfer to other Departments have imposed a correspondingly heavier burden to be carried by those remaining. Despite this, the high standard of performance set in past years has been maintained. The figures set out in this report and in the statement of accounts appended hereto constitute in themselves a record of achievement of which all concerned may be justly proud. These results couM not have been attained without that co-operative spirit which finds its best reward in work well done and difficulties surmounted. Many problems have arisen during the year, but the Board's task has been made easier by the efficiency of a staff which has met all demands made upon it. In earlier reports reference has been made to the Board's policy of recruiting and maintaining an efficient organization. Each year that passes serves to prove the value of that policy, and it is not too much to say that, to a very large extent, successful rehabilitation has been built upon the foundation provided by the Corporation's staff. The individual's rehabilitation depends upon the value he receives for the price he pays. Policy, as such, is valueless unless administered wisely in the interests of those whom it is designed to assist, and it is in the exercise of the. expert knowledge and experience gained over the years that the well-balanced staff of the Corporation, working as an integrated team, has been able to ensure that Government policy has been translated into tangible form, and that the individual has received value. The Board looks forward to another year of continued co-operation and service to the community. Balance-sheet During the year the loan liability increased by £6,200,000, and there has been a •corresponding increase in mortgage investments. The actual new investments totalled £11,660,000, the difference between this figure and the amount of new capital raised being met from repayments of existing loans and the normal principal repayments which are a feature of lending on instalment mortgage. The general Reserve Fund shows an increase of £297,375, and there is a corresponding increase of £331,525 in •Government and local-body securities. There is a statutory obligation to keep the Reserve Fund fully invested in " approved " securities. Sundry creditors stands at a high figure and shows an increase of £306,696. The greater part of this represents amounts owing to the Lands Department in respect of settlement blocks where servicemen have been settled and loan accounts are in process of establishment. Revenue Account The expanding business of the Corporation is reflected in the Interest Account, which shows interest receivable as £2,872,322, an increase of £288,257 on the previous year. It will be noticed that' the payment from Treasury to cover the interest concessions on rehabilitation loans this year amounts to £468,530, representing the differ-

15