H—ll

use of machines and the seriousness of injuries inflicted, the size of the former group points to the fact that legislation and its enforcement by Inspectors of Factories and Inspectors of Machinery is only of limited influence in remedying the problem, and that much more attention must be given to education, employee supervision, safety committees, and to positive action by managements to solve the employee-causes of accidents in their own plants. (3) The relative apathy of employers in New Zealand up to the present time is probably due to the failure to appreciate the part they can play, the new techniques developed in other countries, and the seriousness of the accident problem in industry. A great deal is said about industrial disputes and their effect upon production ; the much greater seriousness of accidents is seldom emphasized. Here is the comparative position in the four latest years for which accident figures are available :

*ln computing these figures an international standard allowance for time lost in the case of fatalities and permanent disability is made. Figures quoted in previous reports did not include this allowance. The figures above for disputes cover all industries. The figures for accidents do not include mines (where the average number is 4,000 to 5,000 accidents a year) or waterside work (also a prolific source of accidents). If accident figures for mining and waterside work were available the figures in the second last column would be much higher. The comparative economic importance of industrial accidents is almost staggering. (4) The cost of accidents is also frequently overlooked. Wages lost through all industrial disputes in 1946 totalled £40,112, whereas compensation for accidents paid in 1946 (the last year for which figures are available) totalled £258,621 (excluding mines and waterfront). Research in England and America shows that indirect costs (loss of production, damage to plant, training new employees, fixed overheads, &c.) amount to four times the direct compensation cost. If this basis is correct the total cost to New Zealand industry, other than mines and waterfront, of accidents in that year —a fairly representative year —was approximately £1,293,000. It is clear that prevention of accidents is good business for the employer, apart from its humanitarian aspect. The following table indicates the trend in New Zealand factories :

Note. —The figures differ from those in paragraph (3) above through the exclusion of non-faetory accidents, mainly in railway operating, building and construction works,, and bush sawmilling.

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Calandar Year.* Number of Industrial Accidents. Number of Working Days Lost Through Industrial Accidents. Number of Working Days lost Through Industrial Disputes. 1943 12,763 963,262 14,687 1944 10,973 978,798 52,602 1945 10,386 845,986 66,629 1946 11,311 950,908 30,393

Year. Number of Factory Accidents. Number of Factory Workers. Reportable Accidents per Thousand Factory Workers. Number of Days Lost by Factory Workers. 1938 4,165 123,723 33-7 349,987 1939 4,938 129,488 38-1 365,074 1940 5,420 132,907 40-8 356,874 1941 6,517 134,089 48-6 410,662 1942 7,496 130,560 * 57-4 431,415 1943 7,591 132,599 57-2 407,964 1944 6,582 138,600 47-5 459,397 1945 6,143 141,752 43-3 385,627 1940 6,388 152,956 41-8 432,976 1947 6,750 162,802 41-5 1948 7,525 164,684 45-7