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The average petrol consumption per road vehicle decreased from 326 gallons in 1947 to 297 gallons in 1948. (These figures are based on the average number of vehicles, excluding trailers, in use throughout the year.) Consumption for other purposes increased substantially in 1947 and 1948 because of expansion in farm mechanization, expansion of commercial aircraft services, the revival of aero club flying activities, and of the considerable increase in petrol-driven plant and machinery used on general construction and road-maintenance work. The total consumption of petrol in New Zealand for the year 1948 was 118,300,000 gallons, of which 102,600,000 gallons was used by motor-vehicles. It is estimated that a saving of approximately 10,000,000 gallons of petrol was made in 1948 as a result of the reapplication of rationing. (vii) Rehabilitation There was in the past year a substantial decrease in the number of applications from returned service personnel for special allocations of rationed goods required to assist them in setting up in business. (viii) Offences The decreases in the number of commodities rationed is accompanied by a corresponding decrease in the number of breaches. In the main, traders have co-operated very well in carrying out the various rationing schemes. (b) Food Control The availability of supplies of imported foodstuffs has sufficiently improved for the procurement of all lines other than tea, rice, and desiccated coconut to be handled through normal trade channels under import-licence procedure. (c) General (i) Procurement for British War Office Contracts for the supply of oatmeal, Wofcester sauce, tomato sauce, and vinegar for the British War Office were negotiated on its behalf during the year. (ii) Food and Rationing Control Office In March, 1949, the Food and Rationing Controller, Mr. A. J. Costelloe, assumed other duties. Such procurement functions as were still required to be carried on were assumed by the Marketing Department. It was no longer necessary to have an appointee as Food Controller, but Mr. L. R. Morriss, of this Department, has been appointed Rationing Controller. SECTION 3—WHEAT, FLOUR, AND BREAD INDUSTRIES The Wheat and Flour Controller, who.is also Gerieral Manager, Wheat Committee, has reported in the following terms for the year ended 31st January, 1949 : (a) General Review Although great difficulty was experienced in keeping all districts in New Zealand fully supplied with wheat throughout the year, at no time did the supply fail anywhere, and by the end of the year the position had eased. The difficulty arose through the shortage of shipping and the partial break-down of the Australian inland transport system,

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