THE NEW ZEALAND OFFICIAL YEAR-BOOK, 1950


Table of Contents

List of Tables

PREFACE.

THE fifty-sixth issue of the New Zealand Official Year-Book follows, in general, the lines of its predecessors.

New features in this issue include a substantial revision of the section on roads and road transport—which now contains a more comprehensive treatment than formerly of such matters as transport-licensing, operation of licensed goods and passenger services, and traffic accidents. The section on wage rates and hours of labour has been expanded to include statistics of actual average award rates for a large selection of occupations. This information is brought up to date in the Latest Statistical Information section by the publication of rates at 31st March, 1951. The Miscellaneous section includes a brief summary of legislation passed it. 1949 and 1950 as well as detailed results of the 1949 elections.

From time to time special articles on topics of considerable public interest have been published in the Year-Book; and, following this practice, an article on Economic Policy and the National Income, contributed by Messrs. J. Baker, M.A., M.Com., and H. Lang, B.A., B.Com., is included as an appendix to this issue.

An innovation in the 1947–49 Year-Book, the Latest Statistical Information section at the beginning of the book, was very well received; this feature being continued in the 1950 issue. It has been possible to include in this section very recent data on a number of subjects, including some preliminary results of the 1951 population census.

While every care is taken to ensure that the information supplied in the Year-Book is accurate, the possibility of an occasional error occurring is always present: and I would be most grateful if such blemishes were drawn to my attention, when noticed by users of the volume. Suggestions for improvement in layout or treatment of subject-matter are also welcomed.

Totals of tables do not invariably agree with the sum of individual items; since in certain tables figures are rounded for convenience in printing to the nearest thousand or some other appropriate unit.

A standard work of reference such as the Official Year-Book draws on a great many sources for the material it contains; and, in these circumstances, detailed acknowledgment of assistance received in its preparation and publication is not practicable. It is, however, fitting that at least occasional reference should be made to the fact that production of a Year-Book is a co-operative effort. In the first place, it would not be possible to produce such a publication without the co-operation of the public in completing the statistical returns from which much of the material included in the Year-Book is compiled. Acknowledgment is due also to many organizations—private and public—for their assistance; to officers of this and other Government Departments for supplying material; and last, but by no means least, to the Government Printer and his staff.

My personal thanks are due to Mr. J. Gilchrist, of this Department, who supervised the editing of the volume: and to his Senior Assistant, Mr. A. A. Teague, M.A., who carried a heavy burden of editorial duties.

G. E. WOOD,
Government Statistician.

Census and Statistics Department,
Wellington, 21st June, 1951.

PUBLICATIONS OF THE NEW ZEALAND CENSUS AND STATISTICS DEPARTMENT

Table of Contents

Title.Latest No.Month of Issue.Price Per Copy.Postage (Extra).

* Out of print.

† With a summary of Building Production for 1947–48.

‡ £1 1s. per annum (post free).

   s.d.d.
New Zealand Official Year-Book1950Aug., 19511508
Annual Statistical Reports—     
Population and Buildings1949–50June, 1951401
Vital Statistics1945Feb., 1951504
Justice Statistics1946May, 1950262
Trade and Shipping (Part I)1944May, 19481004
Trade and Shipping (Part II)*1943 and 1944July, 1948* 
Agricultural and Pastoral Production1948–49Mar., 1951362
Factory Production1946–47 and 1947–48Jan., 1951504
Insurance Statistics1945,1946, and 1947Mar., 1950202
Miscellaneous (Banking, Bankruptcy, Building Societies, Cinematograph Theatres, Tramways)1943,1944, and 1945Jan., 1949261
Prices, Wages, and Labour Statistics1948Oct., 1950361
Industrial Accidents1945 and 1946April, 1950261
Local Authorities Handbook of New Zealand1946–47Aug., 1950765
Pocket Compendium of New Zealand Statistics1950–51Sept., 1951261
Monthly Abstract of Statistics  261
Special Supplements—     
External Trade (March Abstract)1948April, 1951201
National Income and Expenditure (July Abstract)1938–39—1949–50Aug., 1950201
Retail Prices in New Zealand (October–November Abstract) Dec., 1949201
New Zealand Production Statistics May, 1951101
Volumes of 1945 Census Results—     
Increase and Location of Population1945Dec., 1947462
Poultry1945May, 1948261
Island Territories1945June, 1948261
Ages and Marital Status1945July, 1949502
War Service1945May, 1950261
Industries and Occupations1945Jan., 1951762
Interim Returns of Ages, Marital Status, Religious Professions, Birthplaces, Duration of Residence of Overseas-born, Race, War Service, Industries, Occupations, Occupational Status and Travelling Time (Other volumes to follow.)1945Jan., 1949261
Volumes of 1936 Census Results—     
Increase and Location of Population1936Sept., 1937462
Dependencies1936Sept., 193161
Maori Census1936April, 1940301
Ages and Marital Status1936April, 1940402
Orphan Children and Dependent Children1936June, 1940261
Religious Professions1936June, 1940261
Birthplaces1936July, 1945261
Duration of Residence of Overseas-born1936July, 1945261
Race1936Aug., 1945261
Industries and Occupations1936Feb., 1946762
Unemployment1936Aug., 1945401
Incomes1936Sept., 1945762
Dwellings and Households1936May, 1946602
Poultry1936Sept., 1937161
War Service1936June, 1938161
Census of Libraries1938May, 1940161
Life Tables1936Dec., 1944161

NOTE.—This list is subject to revision from time to time. Publications are obtainable from the Government Printer, Wellington.

LATEST STATISTICAL INFORMATION

FOR some of the statistical series included in this issue of the Year-Book later information is available than is included in the body of the book. This later information is given in the following paragraphs, with references to the appropriate portion of the Year-Book containing more detailed information for earlier periods.

POPULATION

Census, 1951. —A population census of New Zealand (exclusive of its island territories) was taken as for the night of Tuesday, 17th April, 1951. Preliminary population figures available at the time of going to press are given in the table below, the 1945 census totals (adjusted to correspond with the 1951 boundaries of cities, boroughs, counties, &c.) being also shown for purposes of comparison.

Table 1. POPULATION SUMMARY, BY ISLANDS

Population, Inclusive of Maoris.
1945 Census.1951 Census (Preliminary Figures).
North Island1,146,2921,314,099
South Island556,006625,604
New Zealand1,702,2981,939,703

NOTE.—Census totals are exclusive of members of the Armed Forces overseas at the census date.

Table 2. POPULATION (INCLUSIVE OF MAORIS) IN COUNTIES, CITIES AND BOROUGHS, TOWN DISTRICTS, ETC.

Administrative County.1945 Census.1951 Census (Preliminary Figures).
North Island
Mangonui7, 5767,599
Whangaroa2,4282,446
Hokianga7,8077,764
Bay of Islands10,30911,792
Whangarei11,63213,401
Hobson5,7626,224
Otamatea5,3136,081
Rodney5,1025,732
Waitemata19,97327,561
Eden3,9278,298
Great Barrier Island191275
Manukau12,52715,692
Franklin15,43416,711
Raglan10,19711,012
Waikato13,11914,033
Waipa13,39614,531
Otorohanga5,5806,180
Kawhia1,9851,982
Waitomo6,7157,563
Taumarunui3,0573,668
Coromandel2,2862,622
Thames2,2992,931
Hauraki Plains4,7955,184
Ohinemuri3,0563,437
Piako10,93911,479
Matamata12,22413,361
Tauranga10,86814,220
Rotorua6,5319,362
Taupo3,1957,553
Whakatane10,33512,733
Opotiki4,6484,865
Matakaoa1,8501,906
Waiapu5,9826,252
Uawa1,5031,640
Waikohu3,1523,403
Cook6,9687,877
Wairoa7,8367,773
Hawke's Bay14,67717,199
Waipawa3,1923,656
Waipukurau1,0401,087
Patangata2,5183,054
Dannevirke4,3214,362
Woodville1,7621,811
Weber317340
Ohura1,6911,852
Whangamomona851797
Clifton2,4922,609
Taranaki6,6617,670
Inglewood3,0533,259
Egmont4,4534,856
Stratford4,7515,170
Eltham3,3423,566
Waimate West2,8142,788
Hawera5,6086,172
Patea3,4903,786
Kaitieke3,2353,561
Waimarino3,1083,480
Waitotara3,3823,579
Wanganui3,4033,765
Rangitikei8,9669,572
Kiwitea2,1822,291
Pohangina1,2581,319
Oroua3,7224,010
Manawatu6,2456,101
Kairanga5,0735,626
Horowhenua7,7548,676
Mutt11,52417,475
Makara4,1335,753
Pahiatua3,5922,724
Akitio1,0051,237
Castlepoint522610
Eketahuna1,8271,807
Mauriceville583554
Masterton2,9003,163
Wairarapa South2,7843,001
Featherston3,7613,742
    Totals, North Island408,489471,217
South Island
Sounds946947
Marlborough7,8568,472
Awatere1,4431,566
Kaikoura3,4243,159
Amuri2,3482,647
Cheviot1,2481,357
Waimea11,43715,364
Takaka1,6702,216
Collingwood9751,011
Buller4,9364,996
Murchison1,2701,393
Inangahua3,2423,723
Grey4,7065,114
Westland4,2944,542
Waipara2,3612,479
Kowai1,7471,937
Ashley613654
Rangiora2,8833,419
Eyre1,6911,814
Oxford1,4941,577
Tawera622741
Malvern3,6053,120
Paparua6,6528,894
Waimairi17,10225,461
Heathcote5,1987,091
Halswell2,0562,481
Mount Herbert488584
Akaroa1,4461,494
Chatham Islands505503
Wairewa895900
Springs1,8782,205
Ellesmere2,7882,860
Selwyn1,4661,591
Ash Ashburton10,20410,349
Geraldine5,2555,535
Levels4,1674,677
Mackenzie3,1614,027
Waimate5,9276,003
Waitaki9,04410,123
Waihemo1,0301,120
Waikouaiti3,4583,629
Peninsula2,9793,844
Taieri5,3006,285
Bruce3,7633,830
Clutha5,4805,825
Tuapeka4,0025,942
Maniatoto2,7202,661
Vincent3,7164,197
Lake1,3891,659
Southland23,59325,449
Wallace8,8259,200
Fiord835
Stewart Island343574
    Totals, South Island209,449241,276
    Totals, New Zealand Counties617,938712,493
City or Borough.1945 Census.1951 Census (Preliminary Figures).
North Island
Kaitaia1,2091,800
Kaikohe1,0471,609
Whangarei9,37411,847
Dargaville2,3702,811
Helensville1,0511,110
Birkenhead3,8064,707
Northcote2,6513,108
Takapuna10,27213,495
Devonport11,66211,699
Henderson1,5062,114
New Lynn4,2776,007
Auckland (City)123,457128,379
Mount Albert24,41625,955
Mount Eden20,16719,264
Newmarket2,9802,602
Ellerslie3,1193,420
One Tree Hill11,64812,438
Mount Roskill12,80319,050
Onehunga13,87216,724
Otahuhu7,1618,062
Papatoetoe4,2327,910
Manurewa1,8472,981
Papakura2,2393,196
Pukekohe3,3093,642
Huntly3,2203,812
Ngaruawahia1,6062,124
Hamilton (City)24,50129,839
Cambridge2,5673,019
Te Awamutu3,0173,874
To Kuiti2,7203,317
Taumarunui2,7063,218
Thames4,2004,549
Paeroa2,2532,588
Waihi3,7563,889
Te Aroha2,4262,664
Morrinsville2,1752,820
Matamata1,6942,123
Putaruru1,0401,872
Mount Maunganui9891,863
Tauranga5,6767,763
Te Puke1,1441,457
Rotorua8,11910,635
Whakatane2,8063,776
Opotiki1,5711,996
Gisborne14,76517,328
Wairoa2,8573,341
Napier (City)17,27319,712
Hastings14,62317,234
Waipawa1,1691,415
Waipukurau2,0982,525
Dannevirke4,3344,649
Woodville1,0951,275
Waitara2,2953,054
New Plymouth (City)18,55821,763
Inglewood1,2951,535
Opunake9351,114
Stratford3,8544,444
Eltham1,8551,981
Hawera4,8405,340
Patea1,4861,684
Ohakune1,4111,619
Raetihi1,0801,153
Wanganui (City)23,84227,266
Taihape2,1862,340
Marton2,9153,475
Feilding5,0015,810
Foxton1,6512,220
Palmerston North (City)25,87730,518
Shannon9221,042
Levin3,2594,728
Otaki2,0422,493
Upper Hutt5,4947,443
Lower Hutt (City)31,25444,493
Petone10,87710,858
Eastbourne2,5612,748
Wellington (City)123,771120,064
Pahiatua1,7492,096
Eketahuna682722
Masterton9,74011,542
Carterton1,9182,196
Greytown1,1761,258
Featherston9761,068
Martinborough899970
Totals, North Island713,276807,650
South Island
Picton1,5771,928
Blenheim5,7807,051
Nelson (City)14,23616,824
Richmond1,3871,973
Motueka1,9092,469
Westport4,6865,509
Runanga1,7981,827
Greymouth8,3758,862
Brunner1,0381,113
Kumara420478
Hokitika2,7422,990
Ross446471
Rangiora2,3842,798
Kaiapoi1,7232,248
Riccarton7,6328,021
Christchurch (City)113,515123,433
Lyttelton3,4073,686
Akaroa487559
Ashburton7,5508,287
Geraldine9241,078
Temuka2,0812,209
Timaru (City)18,39521,213
Waimate2,5212,907
Oamaru7,4848,119
Hampden243285
Palmerston735894
Waikouaiti596601
Port Chalmers2,5362,680
West Harbour1,9952,291
South Island
Dunedin (City)65,74069,686
St. Kilda7,3537,415
Green Island2,6973,490
Mosgiel2,3493,133
Milton1,4721,672
Kaitangata1,3511,246
Balclutha2,2242,621
Tapanui287434
Lawrence573637
Roxburgh516751
Naseby153204
Alexandra1,0281,413
Cromwell716838
Arrowtown201200
Queenstown8541,001
Gore5,0005,548
Mataura1,5471,712
Winton9871,133
Invercargill (City)23,65526,778
South Invercargill1,1611,299
Bluff2,0592,253
Riverton8931,015
    Totals, South Island341,418377,283
    Totals New Zealand cities and boroughs1,054,6941,184,933
Town District.1945 Census.1951 Census (Preliminary Figures).

* Constituted a town district from 1st April, 1951.

(a) Town Districts Not Forming Parts of Counties
North Island
Hikurangi1,0301,096
Kamo556782
Warkworth619733
Glen Eden1,5692,580
Howick1,3352,112
Waiuku9481,192
Tuakau8911,068
Leamington644829
Otorohanga1,2341,569
Manunui723771
Taupo7231,356
Taradale1,7652,461
Havelock North1,4581,828
Ohura474513
Manaia618659
Waverley767782
Mangaweka290376
Hunterville524534
Bells605693
Tawa Flat872*2,459
Johnsonville2,4743,586
    Totals, North Island20,11927,979
South Island
Takaka512590
Leeston612738
Tinwald671871
Pleasant Point483561
Wyndham Lumsden536,481579,503
Nightcaps Otautau602,601613,737
    Totals, South Island4,4985,192
    Totals, New Zealand independent town districts24,61733,171
(b6) Town Districts Forming Parts of Counties
(Population figures included also under those for parent county shown in parentheses below)
North Island
Kohukohu (Hokianga)237222
Rawene (Hokianga)401454
Russell (Bay of Islands)441579
Kawakawa (Bay of Islands)587639
Onerahi (Whangarei)490829
Mercer (Franklin)290306
Te Kauwhata (Waikato)444621
Ohaupo (Waipa)249287
Kihikihi (Waipa)401450
Kawhia (Kawhia)261289
Te Karaka (Waikohu)371384
Patutahi (Cook)203224
Kaponga (Eltham)395432
Normanby (Hawera)313394
    Totals, North Island5,0836,110
South Island
Havelock (Marlborough)244283
Southbridge (Ellesmere)375387
Outram (Taieri)347361
Edendale (Southland)456478
    Totals, South Island1,4221,509
    Totals, New Zealand dependent town districts6,5057,619

In addition to the populations shown for counties, &c., there were 9,106 persons at the 1951 census on islands outside county boundaries and on board ships or trains. Figures given in the table may now be summarized as follows:—

Population Enumerated In or OnPopulation.
1945 Census.1951 Census (Preliminary Figures).
Administrative counties (i.e., inclusive of those in dependent town districts)617,938712,493
Cities and boroughs1,054,6941,184,933
Independent town districts24,61733,171
Extra-county islands, shipboard, or trains5,0499,106
Totals, New Zealand population1,702,2981,939,703

Natural Increase. —Owing to the substantial increase in births in the last few years and the relative stability in the number of deaths, population gains from natural increase—i.e., excess of births over deaths—have been particularly marked in recent years, the excess of births over deaths increasing from 23,965 in 1945 to 32,362 in 1947 (a record level) with slight recessions in subsequent years to a 1950 excess of 31,330.

Migration (pp. 23–26).—The total number of arrivals in New Zealand during the year ended 31st March, 1951, was 104,830, while the total number of departures in the same year was 96,456. Excluding crews and through passengers, arrivals totalled 54,644 and departures 47,122, making the net excess of arrivals 7,522, as compared with 6,989 in 1950 (March year). A classification of total arrivals and departures gives the following results.

Year Ended 31st March,
1950.1951.
Migration: Arrivals
Immigrants intending permanent residence17,70118,234
Permanent residents returning18,46319,976
Visitors—  
  Tourists10,76812,183
  Others3,9484,251
Through passengers2,4892,923
Crews47,49947,263
    Total arrivals100,868104,830
Migration: Departures
Permanent residents departing—  
  Permanently6,8867,787
  Temporarily20,10721,371
Temporary residents departing16,00717,964
Through passengers2,4892,923
Crews45,95846,411
    Total departures91,44796,456

Recent statistics of the number of immigrants intending permanent residence show considerable increases, the arrivals under this heading having increased during the last five March years as follows: 1947, 8,106: 1948, 9,648; 1949, 11,387; 1950, 17,701; and 1951, 18,234. The resumption of assisted passages for certain classes of immigrants is reflected in the statistics. In the last two years the number coming under this heading totalled 2,528 in 1950 and 2,928 in 1951.

VITAL STATISTICS

Vital statistics for the calendar years 1949 and 1950 are shown, in summary form, in the following table. Statistics in more detail for earlier years are given on pages 53–103.

1949.1950.
Number.Rate per 1,000 of Mean Population.Number.Rate per 1,000 of Mean Population.

*Infant mortality rates per 1,000 live births.

Births—    
  Europeans43,98824.8844,30924.56
  Maoris4,91743.345,10543.66
    Total population48,90526.0049,41425.72
Deaths—    
  Europeans16,0129.0616,7159.27
  Maoris1,56613.801,36911.71
    Total population17,5789.3418,0849.41
Marriages (European population)16,7889.5016,5049.15
Infant deaths under one year—    
  Europeans1,04623.78*1,00822.75*
  Maoris42285.82*35068.56*
    Totals1,46830.02*1,35827.48*

Births.—The total number of births registered in 1950 (49,414) has been exceeded only once in the history of the country, this occurring in 1947 when the registrations numbered 49,804. The birth-rate for 1947 (27.63 per 1,000 of total population) is the highest on record in recent years; and, in fact, it is necessary to go back to 1912 to find a higher rate recorded in New Zealand.

PRODUCTION

Gross Farming Income (pp. 312–313).—The statistics of gross fanning income for 1949–50 show record totals for values in respect of each of the groups, and in terms of volume for groups other than “Agricultural Produce.” Increased unit price levels were partly responsible for the increased value totals, but increased production, measured in terms of wool, live-stock slaughterings, and butterfat, was a major contributing factor.

Farm production as a whole, as measured in terms of gross farming income, showed an over-all increase of 25 per cent. in value and 5 per cent. in volume as compared with the previous year. Both value and volume totals for 1949–50 established records.

An amendment to the value figures for the “Pastoral Produce” group for 1946–47 and later years has recently been made, and the revised figures are given in the tables which follow:—

GROSS FARMING INCOMES: VALUES

Production Year.Agricultural Produce.Pastoral Produce.Produce of Dairying, Poultry, and Bees.All Farm Produce.
 £(m.)£(m.)£(m.)£(m.)
1945–4614.545.636.496.5
1946–4715.051.344.9111.2
1947–4815.066.252.1133.3
1948–4917.468.858.4144.6
1949–5017.699.264.2181.0

INDEX NUMBERS OF VALUE AND VOLUME

Base: 1938–39 (= 100)

Production Year.Agricultural.Pastoral.Dairying, &c.All Farm Produce.
Value.Volume.Value.Volume.Value.Volume.Value.Volume.
1945–4617714215311311892140107
1946–47183152172108146102161110
1947–48183144221114169104193113
1948–49212157230112190113210117
1949–50215150332122208117263123

Farm Production

NOTE.—In 1950 a special census of agriculture was conducted as part of the world census of agriculture. A considerably wider scope was covered in this special census than in the normal annual collection of agricultural and pastoral statistics. In particular, a comprehensive examination of farm machinery was undertaken for the first time; while, again, an analysis of farm population and employment was made. Detailed analysis of the wealth of material collected at this census will take a considerable time, but the first results—New Zealand totals, for each item of information included in the questionnaires—are published below. The figures are subject to slight revision when final tabulations are completed.

Attention is directed to the fact that the census covered holdings of 1 acre or over located outside borough boundaries.

Summary of Holdings and of Area in Cultivation (pp. 280–282).—Figures shoving the position as at the 31st January, 1950, are given below.

Summary of Holdings.Number.
Total holdings at 31st January, 195090,192
Number occupied by Maoris4,334
Number worked on share system2,633
Number lying entirely idle or unused2,262
Status of occupier— 
  Owner55,060
  Lessee17,819
  Manager2,524
  Partner1,235
  Shareworker2,251
  Part owner, part lessee11,303
Total area occupied at 31st January, 195043,253,908
Tenure— 
  Crown lands, including Crown leases and licences18,377,458
  Freehold, occupied by owner21,137,131
  Leased from private individuals2,016,387
  Leased from public authorities586,313
  Leased from Maoris1,136,619

The total area occupied at 31st January, 1950, is further subdivided as follows:—

Summary of Area in Cultivation and in Occupation.Area (Acres).
Sown grasses— 
  Sown since 31st January, 1950— 
    On virgin land45,201
    On land previously cultivated538,674
  Sown before 31st January, 195017,608,453
Grain and root, &c., crops, less area also sown with grasses and clovers904,295
Native grasses (naturally established danthonia)1,234,503
Tussock11,694,624
Phormium (New Zealand flax)46,413
Fern, scrub, second growth, &c.5,223,975
Standing native bush or forest2,933,521
Plantations— 
  Conifers887,366
  Eucalyptus and broad-leaved trees20,375
Orchards— 
  Registered bearing14,745
  Registered non-bearing1,328
  Unregistered bearing2,306
  Unregistered non-bearing537
Grape vines1,091
Passion-fruit vines84
Hop vines605
Market gardens— 
  Gooseberries146
  Black currants154
  Red currants26
  Raspberries830
  Other bush fruits and berries331
  Vegetable crops for sale (including tomatoes)11,882
Nurseries— 
  Flowers and ornamental shrubs818
  Forest-tree seedlings349
  Seedling fruit-trees (including small bush fruits and berries)254
  Vegetable seedlings221
Residence, out-buildings, private gardens, &c.97,364
Bare fallow during season90,999
Barren and unproductive land1,892,438
    Total area occupied43,253,908

Top-dressing (p. 342).—The area of grassland top-dressed during the year 1949–50 is given in the following table.

Top-dressed WithArea (Acres).Total Quantity Used.
Artificial fertilizers only—  
  Straight superphosphate2,531,8496,227,289 cwt.
  Basic, reverted, or serpentine-superphosphate609,5421,773,191 cwt.
  Ground rock phosphate and/or basic slag319,644999,245 cwt.
  Other phosphatic fertilizers and mixtures233,189726,409 cwt
  Manufactured organic fertilizers55,648161,047 cwt.
Lime only591,718517,868 tons.
Both artificial fertilisers and lime1,389,014 
  Quantity of fertilizer 3.287,892 cwt.
  Quantity of lime 593,221 tons.
  Total area of grassland top-dressed5,730,604 

Crops (pp. 331–347).—Following is a summary of the principal crop statistics for the production year 1949–50.

PRINCIPAL CROPS, 1949–50 PRODUCTION SEASON

Name of Crop.Areas, 1949–50.Yields.
Unit.1949–50.
Wheat—Acres.  
  For threshing125,126Bushel4,897,602
  For chaff, hay, or ensilage693Ton1,279
  Fed off, cut for green fodder, &c.2,361  
Oats—   
  For threshing52,645Bushel2,620,252
  For chaff, hay, or ensilage53,910Ton100,198
  Fed off, cut for green fodder, &c.55,116  
Barley—   
  For threshing56,916Bushel2,433,485
  For chaff, hay, or ensilage437Ton1,491
  Fed off, cut for green fodder, &c.13,156  
Maize—   
  For threshing7,229Bushe462,833
  For ensilage61Ton249
  Fed off, cut for green fodder, &c.4,945  
Peas for threshing41,519Bushel1,242,730
Linseed for threshing7,535  
Lupins for threshing4,538Bushel69,633
Other crops for threshing4,622  
Potatoes17,785Ton136,049
Onions887Ton8,386
Tobacco3,376  
Linen flax2,791  
Swedes for fodder175,128  
Turnips for fodder187,511  
Turnips and rape mixed27,180  
Rape for fodder181,777  
Kale for fodder101,062  
Pumpkins and marrows1,195  
Other green-fodder crops18,197  
Vegetable crops for processing1,952  
Rye-grass harvested for seed—   
  Perennial43,743lb.17,550,046
  Italian (including western wolths)3,461lb.1,352,021
  Short rotation (HI)8,001lb.3,326,029
Cocksfoot harvested for seed4,915lb.769,634
Chewings fescue harvested for seed17,755lb.3,522,867
Crested dogstail harvested for seed5,690lb.1,093,211
Red clover (including cowgrass) harvested for seed20,061lb.3,431,961
White clover harvested for seed29,515lb.4,294,276
Other grasses harvested for seed14,952lb.1,180,554
Fodder crops—   
  Grasses and clovers cut for hay494,932Ton1,002,385
  Grasses and clovers cut for ensilage83,534Ton404,138
  Lucerne cut for hay or ensilage52,027Ton124,040

The yield of wheat in the 1950 harvest season was 4,897,602 bushels, a decrease of 1,060,424 bushels below the total yield in the previous season. The acreage harvested fell from 146,707 acres in 1948–49 to 125,126 acres in 1949–50—a fall of 14.7 per cent. Moreover, the yield per acre (39.14 bushels) was slightly lower than the record yield of 40.61 for 1948–49. The acreage under oats for grain also showed a substantial fall—in this instance from 78,300 acres in 1948–49 to 52,645 acres in 1949–50—while the aggregate yield fell from 3,718,597 bushels to 2,620,252 bushels. The acreage of barley threshed showed a small decrease (from 58,707 acres in 1948–49 to 56,916 acres in 1949–50), although the yield rose from 2,256,362 bushel, in the former year to 2,433,485 bushels in the latter year.

The potato crop in 1949–50 totalled 136,049 tons, a considerable increase of 26,405 tons, or 264 per cent., on the 1948–49 harvest; while a large decrease was recorded in the onion crop (8,386 tons in 1949–50, compared with 10,674 tons in 1948–49).

The area under tobacco of 3,376 acres showed only a slight fall from the record acreage of 3,484 in 1948–49. In addition to this area, a quite considerable acreage is grown within borough boundaries. Acreages of grasses and clovers harvested for seed in 1949–50 fell compared with those of the previous year. The acreage of perennial rye-grass declined from 51,226 acres in 1948–49 to 43,743 acres in 1949–50—the yield however, rising from 17,159,333 lb. to 17,550,046 lb.

Livestock (pp. 348–364).—In the following table the numbers of live-stock on holdings at. 31st January, 1949 and 1950, are given.

LIVE-STOCK AS AT 31ST JANUARY

1949.1950.
Cattle  
  Dairy stock—  
    Breeding-bulls, two years old and over57,52761,867
    Dairy cows and heifers, two years old and over—  
    Cows in milk at any time during season1,746,7531,845,510
    Heifers not yet in milk62,91858,177
    Cows not in milk during season, but intended for milking in future43,08059,677
    Heifers—  
    One and under two years old365,851394,224
    Under one year old373,432408,352
    Bulls and bull calves under two years old intended for dairy breeding31,86732,170
        Totals, dairy stock2,681,4282,859,977
  Beef stock—  
    Breeding-bulls, two years old and over22,12922,358
    Beef cows and heifers, two years old and over (including culls from dairying herds)756,354771,875
    Heifers—  
    One and under two years old197,930199,443
    Under one year old185,756206,870
    Steers, two years old and over (including bulls intended for slaughter)446,689455,675
    Steers and bulls, one and under two years old202,788207,929
    Bulls and steer calves under one year old229,762224,682
        Totals, beef stock2,041,4082,088,832
        Totals, all cattle4,722,8364,948,809
  Pigs  
    Under six months old333,056351,795
    Six months and under one year old130,649112,337
    Boars, one year old and over12,83114,128
    Sows, one year old and over68,30574,112
        Totals, pigs544,841552,372
  Horses  
    Draught and three-quarter draught74,00471,811
    Spring-cart or light artillery (including half draught)31,38026,252
    Hacks and light working-horses73,70976,715
    Thoroughbred and other horses16,96220,068
        Totals, horses196,055194,846

The total number of cattle in New Zealand on 31st January, 1950, was 4,948,809, compared with the previous record total of 4,722,836 in 1949. Dairy stock rose from 2,681,428 in 1949 to 2,859,977 in 1950, while beef stock rose from 2,041,408 in the former year to 2,088,832 in the latter year.

The number of dairy cows in milk during the season rose from 1,746,753 in 1949 to 1,845,510 in 1950, while butterfat production increased from 467,000,000 lb. in the 1948–49 dairying season to 471,000,000 lb. in the 1949–50 season.

Sheep (p. 350).—A collection of statistics of sheep population was made through Inspectors of Stock on 30th April. Following are the results (in summarized form) of the last two collections of this data.

SHEEP AT 30TH APRIL (INCLUDING SHEEP IN BOROUGHS)

Class.1949.1950.
 Number.Number.
Rams582,922594,682
Wethers2,475,4132,476,259
Breeding-ewes21,499,70321,881,467
Dry ewes635,242643,420
Lambs7,651,6388,260,730
      Total sheep population32,844,91833,856,558

The foregoing statement shows the position at 30th April of each year, and at this stage the meat-slaughtering season is well advanced, consequently the figures do not represent maximum sheep population. Estimates of lambing made from reports furnished by Inspectors of Stock show the total production of lambs in the 1950 season to amount to 20,926,119 lambs, as compared with 21,169,846 lambs actually tailed in the 1949 season. The lambing estimate for 1949 was 20,742,499. Sheep shorn in 1949–50 totalled 31,525,570, and lambs shorn 6,332,148.

Farm Machinery (pp. 327–331).—Statistics of farm machinery on holdings in 1950 are given in the following table.

FARM MACHINERY, ETC., AS AT 31ST JANUARY, 1950

Number.
Threshing-mills347
Tin mills277
Header harvesters3,130
Chaffcutters1,350
Reapers and binders8,521
Hay-sweeps24,220
Hay-rakes (including side delivery and dump rakes)26,476
Hay-stackers11,719
Hay balers and presses4,269
Mowers39,603
Drills— 
  Combine14,223
  Ridger5,974
Ploughs— 
Moldboard53,549
  Disc8,716
  Mole drain2,360
Harrows— 
Tine (number of sets)46,246
Disc (number of sets)29,230
Chain (number of sets)30,528
Cultivators— 
  Inter-row10,309
  Field12,034
Manure sowers and spreaders31,435
Rollers16,737
Potato-planters827
Potato-harvesters1,067
Spraying-machines (power-driven)1,676
Motor lorries and trucks25,378
Motor-cars48,096
Farm carts and drays41,715
Electric motors— 
Number110,380
Horse-power100,487
Internal-combustion engines— 
  Number29,841
  Horse-power84,701
Rotary hoes and garden tractors— 
  Number3,086
  Horse-power14,379
Agricultural tractors— 
Diesel oil— 
  Crawler type— 
    Number1,302
    Horse-power42,330
  Wheel type— 
    Number1,228
    Horse-power39,639
  Petrol driven— 
  Crawler type— 
    Number1,797
    Horse-power41,156
  Wheel type— 
    Number24,254
    Horse-power537,401
  Kerosene (paraffin) driven— 
  Crawler type— 
    Number651
    Horse-power16,425
  Wheel type— 
    Number5,451
    Horse-power131,316
Number of shearing-sheds21,520
Night-pen capacity of sheds4,027,006
Number of flocks machine-shorn31,047
Number of flocks blade-shorn7,457
Number of wool-presses18,754
Shearing-machines— 
  Number of plants18,756
  Number of stands40,535
Number of herds machine-milked35,084
Number of herds hand-milked35,782
Milking-machines— 
  Number of plants36,316
  Cow-capacity138,998
Number of cows in milk in herds actually machine-milked1,714,414
Power used in driving milking-machines— 
  Electric-motors31,221
  Internal-combustion engines4,395
  Other power94
Number of cream-separators54,303

Farm Population.—The following table gives the number of persons actually resident on farm holdings on the 31st January, 1950.

Number.
Members of occupier's family— 
(a) Performing full-time farm work— 
  Males— 
    15 and under 21 years old6,285
    21 years old and over74,465
  Females— 
    15 and under 21 years old655
    21 years old and over2,095
(b) Regularly performing part-time work (i.e., not less than 14 hours per week)— 
  Males— 
    Under 15 years of age736
    15 and under 21 years old1,250
    21 years old and over8,306
  Females— 
    Under 15 years of age327
    15 and under 21 years old1,313
    21 years old and over10,849
(c) Not regularly performing farm-work (i.e., less than 14 hours per week)— 
  Males— 
    Under 15 years of age53,156
    15 and under 21 years old6,336
    21 years old and over16,681
  Females— 
    Under 15 years of age49,180
    15 and under 21 years old8,509
    21 years old and over71,999
(d) Total resident members of family ((a) + (b)+ (e))— 
  Males— 
    Under 15 years of age53,892
    15 and under 21 years old13,871
    21 years old and over99,452
  Females— 
    Under 15 years of age49,507
    15 and under 21 years old10,477
    21 years old and over84,943
Farm employees, other than members of family, but excluding casual and temporary workers— 
  Males— 
    15 and under 21 years old3,201
    21 years old and over15,954
  Females— 
    15 and under 21 years old257
    21 years old and over1,059
Casual or temporary workers actually resident on farms on 31st January, 1950— 
  Males— 
    Under 15 years of age173
    15 and under 21 years old482
    21 years old and over3,200
  Females— 
    Under 15 years of age106
    15 and under 21 years old171
    21 years old and over786
All other residents on farms, including domestics, boarders, members of farm employees' families, &c.— 
  Males— 
    Under 15 years of age9,390
    15 and under 21 years old1,196
    21 years old and over3,659
  Females— 
    Under 15 years of age8,295
    15 and under 21 years old1,143
    21 years old and over11,236
Total farm population on 31st January, 1950— 
  Males— 
    Under 15 years of age63,455
    15 and under 21 years old18,750
    21 years old and over122,265
  Females— 
    Under 15 years of age57,908
    15 and under 21 years old12,048
    21 years old and over93,024

General Review.—As mentioned at the commencement of these notes, the 1949–50 inquiry covered a number of items not included in the normal collection of agricultural and pastoral statistics. The previous comprehensive inquiry (conducted as part of a world census of agriculture) was for the year 1929–30, so that comparisons in many cases must be made over a period of twenty years. The 1950 collection was made by personal canvas, and in some cases farms which had not been covered by immediately preceding collections were included. Again more exact definition of requirements was possible in the personal collection. These factors have to some extent affected year-to-year comparisons.

Significant changes in occupancy have taken place since 1930, as is evidenced by the growth in the number of holdings worked under a share system, in the increased number of farm-managers, and also in the larger number of holdings now occupied by Maoris. The following comparison illustrates the extent of these changes.

1930.1950.
Total number of holdings85,16790,192
Number of holdings worked under share system7812,633
Number of holdings occupied by Maoris2,7154,334
Number of holdings being entirely idle or unused6,3302,262
Status of occupier—  
  Owner or lessee83,16485,417
  Manager1,2222,524
  Share-worker7812,251

The increased use of fertilizers on grasslands is well illustrated by the growth in the area top-dressed (from 2,650,748 acres in 1929–30 to 5,730,604 acres in 1949–50).

The growth in irrigation as between the two periods is also worthy of note. In 1949–50, 106,494 acres were irrigated, as compared with 64,846 acres in 1929–30.

The development in the small-seeds industry is shown by the areas of grasses, clovers, and lucerne cut for seed, which were 66,855 acres in 1929–30 and 148,093 acres in 1949–50. The total yields obtained from these areas were 20,040,103 1b. and 36,520,599 lb. respectively.

A wealth of detailed information relating to farm machinery is available for 1950, and is shown in the appropriate table. A comparison of the main headings for the years 1930 and 1950 is as follows:—

1930.1950.
Electric motorsNo.16,456110,380

*Cows in milk on holding employing milking-machines. 277 tin mills and 3,130 header harvesters.

† Including 347 threshing-mills.

 H.p.28,638100,487
Internal-combustion enginesNo.19,16929,841
 H.p.58,55284,701
Agricultural tractorsNo.3,89134,683
 H.p.59,217808,267
Milking-machinesPlants20,41536,316
 Cow-capacity72,147138,998
 Cows milked*967,1311,714,414
Cream-separatorsNo.48,30254,303
Shearing-machinesPlants7,39418,756
 Stands21,48240,535
Wool-pressesNo.9,90618,754
ChaffcuttersNo.2,2061,350
Reapers and bindersNo.15,4848,521
Threshing-machinesNo.4183,754

The farm labour force and farm population are important aspects of our farming economy, and the following comparisons throw into detail some of the major changes that have taken place.

PERSONS (FIFTEEN YEARS OF AGE AND OVER) ENGAGED IN FARM WORK

1929–30.1949–50.
Males117,590109,461
Females18,31916,228
    Totals135,909125,689

Although there has been a decrease in farm employment, particularly among workers (other than family), as compared with 1929–30, the total farm population has shown an increase from 345,770 in 1929–30 to 372,450 in 1949–50.

The 1949–50 statistics of yields of grain crops show that the pre-harvest estimates for that season were slightly exceeded in each case. The pre-harvest estimates of yields for the 1950–51 season, which are given later, forecast an increased yield of wheat but substantial decreases in the yields of oats and barley. The total area sown in the five major cash crops (wheat, oats, barley, peas, and potatoes) shows a reduction of almost 10 per cent. as between 1949–50 and 1950–51.

All classes of dairy stock showed increases in numbers between 1949 and 1950, as also did most other classes of live-stock. The 1950 total for dairy cows in milk is the highest total on record, as are also the number of sheep shorn, the number of lambs shorn, and the number of lambs tailed.

Estimated Areas of Principal Crops, 1951 Season.—Estimates of areas sown under wheat, oats, barley, and potatoes were collected in the spring of 1950 by inquiry from growers of these crops. Following are the estimates in acres.

Acreages Under Principal Crops.
1949–50 (Provisional).1950–51 (Estimated).
North Island.South Island.Total, New Zealand.
Wheat128,1808,000138,000146,000
Oats161,6719,500120,500130,000
Barley70,5095,50052,50058,000
Peas for threshing41,3193,00025,00028,000
Potatoes17,7855,50011,00016,500

These figures relate only to holdings of 1 acre and over situated outside borough boundaries. In addition, in the case of potatoes, a fairly considerable amount in the aggregate is grown on smaller holdings and on holdings within borough boundaries.

The following estimated average yields per acre of wheat, oats, and barley for the season 1950–51 have been compiled from reports furnished by officers of the Department of Agriculture throughout New Zealand.

District.Wheat: Bushels Per Acre.Oats: Bushels Per Acre.Barley: Bushels Per Acre.
North Island433841
Marlborough362639
Nelson443037
Canterbury404442
Otago424540
Southland506033
Average (estimated for New Zealand)414841

In accordance with the above estimates, the total yield of wheat for the season 1950–51 should be approximately 5,900,000 bushels, as against a yield of 4,897,602 bushels for the season 1949–50.

The area from which oats were threshed for the five seasons ending with 1949–50 averaged 34.17 per cent. of the total area under that crop. Assuming that a similar proportion is threshed this year, the total yield of grain would be approximately 2.100,000 bushels, as against a yield of 2,620,252 bushels for the season 1949–50.

On a similar assumption in regard to barley, the total yield of grain would be 2,000,000 bushels, as against 2,433,485 bushels for the season 1949–50.

Timber Production

Timber Production (pp. 376–377).—Provisional figures issued by the New Zealand Forest Service for the year ended 31st March, 1951, indicate a new record for timber production, the output of rough-sawn timber being given as 525,000,000 board feet. The output of the major species was as follows: rimu and miro, 229,200,000 board feet; matai, 36,800,000 board feet; kahikatea, 20,000,000 board feet; beech, 17,600,000 board feet; and insignis pine 182,900,000 board feet. The total for indigenous species is 332,700,000 board feet, and for exotic species 192,700,000 board feet.

Electric Power

Electric-pawer Statistics (p. 462).—Principal data covering all stations for the year ended 31st March. 1950, are summarized below:—

Number of stations96
Persons engaged6,435
Salaries and wages paid£3,032,749
Number of consumers554,640
Number of— 
  Ranges221,181
  Water-heaters256,201
Prime movers (total b.h.p.)974,431
Generator capacity (main and standby) (kW.)679,316
Route-miles of lines40.516
Revenue— 
  Sales of current— 
    Retail£8,431,221
    Bulk and interchange£4,149,426
  Other (including rates)£209,819
      Total revenue£12,796,466
Expenditure— 
  Power purchased (including interchange)£4,173,815
  Generating-costs£894,424
  Transmission and distribution£1,693,240
  Management and general£1,260,093
  Capital charges£3,687,310
      Total expenditure£11,708,882
Appropriations (including taxation)£996,660
Capital outlay— 
  Total expenditure to date£83,303,494
  Expenditure during year£9,060,712
Units (kWh.)— 
  Generated (000)3,030,270
  Per head of mean population1,602
  Sold (retail) (000)2,403,798

Factory Production (see Section 22)

Following are the principal statistics of factory production in the years 1938–39, 1947–18, and 1949–60. Data for the year 1948–49 are not shown here although included in the relevant portions of Section 22. In that year the annual survey was carried out on a sample basis, only 20 major industries being covered.

Production Year
1938–39.1947–48.1949–50.
Number of—   
  Establishments6,1467,9668,027
Persons engaged—   
  Males76,868106,206108,975
  Females25,66734,06135,334
        Totals102,535140,267144,309
Salaries and wages paid—   
  To males £(000)19,48644,76152,387
  To females £(000)2,7847,3728,930
        Totals £(000)22,27052,13361,317
Cost of materials £(000)75,635181,773221,229
Other expenses £(000)10,00221,24126,335
Value of output £(000)114,447272,155331,704
Added value £(000)38,81390,382110,475
Value of assets—   
  Fixed, including rented assets—   
    Land and buildings £(000)27,20242,59351,303
    Plant and machinery £(000)49,29690,220110,990
Motive power—   
  Total H.p.(000)8481,3201,474
  Excluding electric supply industry H.p.(000)263431499
Averages per person engaged—   
  Salary or wage—   
    Males £254421481
    Females £108216253
    Both sexes £217372425
  Added value £379644766
  Value of output £1,1161,9402,302
Ratio of salaries and wages to added Per cent. value57.457.755.5
Ratio of salaries and wages to total Per cent. cost of operations20.620.419.8

The quantities of some of the more important factory products in 1938–39, 1947–48, and 1949–50 are given in the following table.

Item.Unit.1938–39.1947–48.1949–50.

* Carcase weight.

† Cigarettes Included with tobacco.

Food, drink, and tobacco—    
  Aerated waters and cordialsGallons2,803,0004,312,0004,694,000
  Ale and stoutGallons17,394,00030,499,00034,241,000
  BiscuitsTons8,00013,00015,000
  ButterCwt.2,957,0003,040,0003,377,000
  Canned and pulped fruitCwt.88,00051,00059,000
  Canned vegetablesCwt.21,000124,000131,000
  CheeseCwt.1,705,0001,729,0002,108,000
  ConfectioneryTons12,00013,00016,000
  FlourShort tons145,000172,000165,000
  Frozen beef*Cwt.1,102,0002,080,0001,778,000
  Frozen lambCarcases9,462,00012,209,00012,450,000
  Frozen muttonCarcases2,651,0002,825,0002,831,000
  Ham and bacon (cured)Cwt.164,000282,000301,000
  Ice-cream and ice-cream productsGallons808,0002,714,0003,063,000
  Jam and jelliesCwt.56,000133,00076,000
  Oatmeal, rolled oats, &c.Short tons7,0009,0008,000
  Preserved meatsCwt.82,000183,000167,000
  CigarettesMillion1,3541,648
  Tobaccolb.4,043,0004,027,0004,963,000
Textiles—    
  BlanketsPairs135,000125,000132,000
  FlannelYards601,000460,000498,000
  Tweed and clothYards1,251,0002,247,000 
Clothing—    
  Boots and shoesPairs1,978,0003,396,0003,193,000
  DressesNumber681,0001,197,0001,121,000
  HosieryDoz. pairs363,000647,000672,000
  Knitted outerwearDozen15,00090,000102,000
  Men's trousersNumber683,000747,000871,000
Overcoats—    
  Men's and boys'Number69,000196,000150,000
  Women's and girls'Number149,000405,000423,000
  Pyjamas and nightwearDozen57,000111,000136,000
  ShirtsDozen182,000207,000221,000
  SlippersPairs1,244,0002,065,0001,940,000
Suits—    
  Men'sNumber209,000141,000186,000
  Boys'Number24,00015,00043,000
  UnderwearDozen442,000820,000909,000
Other—    
  Agricultural limeTons481,0001,012,0001,193,000
  CementTons216,000227,000246,000
  Chemical fertilizersTons475,000619,000683,000
  Leatherlb.4,829,00012,267,00011,937,000
  ManuresCwt.619,000702,000769,000
  Soap (including toilet)Tons8,00010,00010,000
  BricksMillions372934
  Electricity generatedMillion kWh.1,4142,5903,030
  Gas madeMillion cub. ft.4,1555,4575,541
  Radio receiversNumber25,00049,00056,000
Motor-vehicles assembled—    
  CarsNumber17,64610,4089,731
  Commercial vehiclesNumber4,2534,5836,754

Classification of Industries.—In the following table the principal factory statistics are classified according to four significant industrial groups. Group I comprises industries concerned with processing pastoral products; Group II, public utility industries (electricity generation and supply, gasworks); Group III, further industries closely associated with primary or extractive production (e.g., sawmilling); and Group IV, the remainder of factory industries, being those falling generally within the economic classification of “secondary” production. (For a detailed explanation see pages 421–422 of this Year-Book.)

Group and Industry.Persons Engaged.Salaries and Wages Paid.Cost of Materials.Value of Output.Added Value.

* In this industry the cost of materials is taken as the total expenditure other than salaries and wages.

1938–39
 Number.£(000)£(000)£(000)£(000)
Group I13,3913,83744,05251,0627,010
Group II5,6811,5585,5827,8402,258
Group III10,5792,5832,4097,0154,606
Group IV72,88414,29223,59248,53024,938
    Totals102,53522,27075,635114,44738,812
1947–48
 Number.£(000)£(000)£(000)£(000)
Group I17,8778,16487,168101,78514,617
Group II6,1202,5489,29812,7683,469
Group III12,5235,3625,23914,9269,687
Group IV103,74736,05980,068142,67762,609
    Totals140,26752,133181,773272,15590,382
1949–50
 Number.£(000)£(000)£(000)£(000)
Group I—     
  Meat-freezing, &c.11,5376,36043,49155,27111,780
  Butter and cheese, &c.4,2902,14853,40558,6825,277
  Other industries1,88093111,35313,3041,951
    Totals17,7079,439108,249127,25719,008
Group II—     
  Electric supply*4,7542,26010,08212,7912,708
  Gasworks1,6578079662,4301,465
    Totals6,4113,06711,04815,2214,173
Group III—     
  Sawmilling, &c.9,9304,7635,46214,2568,794
  Other industries3,4001,5369614,5313,571
    Totals13,3306,4236,29918,78712,364
Group IV—     
  Clothing17,8895,2909,56217,1567,594
  Printing8,3633,6073,70810,3356,627
  General engineering8,7993,9724,79211,2786,486
  Body - building and motor and cycle engineering11,1544,5655,54612,5917,045
  Motor assembly1,6258516,9778,5871,610
  Furniture5,0011,8982,7065,6022,896
  Footwear4,9581,9132,6665,2582,592
  Brewing and malting1,5307842,5004,4111,911
  Biscuit and confectionery2,9451,1053,3225,4602,138
  Woollen-milling2,7251,0571,2903,0371,747
  Sheet-metal working2,8001,2102,7744,8862,112
  Woodware and joinery2,2609341,7983,4291,631
  Hosiery and knitted goods2,7399652,0273,8271,800
  Chemical fertilizers1,0915913,8275,3521,525
  Electrical engineering radio, and range-making4,5201,9154,2617,4323,171
  Other industries28,46211,85537,75361,79824,045
    Totals106,86142,51295,509170,43974,930
    Grand totals144,30961,317221,229331,704110,475

In the following table index numbers of the value and volume of production in each of the four classes and for all factory production are shown.

INDEX NUMBERS OF VALUE AND VOLUME OF FACTORY PRODUCTION BASE: 1938–39 (= 100)

Production Year.
1947–48.1949–50.

* Estimated on basis of industries where quantitative production is known.

Group I (processing pastoral farm products)—  
  Added value209271
  Value of products199249
  Volume of production128136
Group II (public utility industries)—  
  Added value154185
  Value of products163194
  Volume of production158174
Group III (processing natural resources)—  
  Added value210268
  Value of products213268
  Volume of production131143
Group IV (“secondary” industries)—  
  Added value251300
  Value of products294351
  Volume of production159172*
Total, all groups—  
  Added value233285
  Value of products238290
  Volume of production151164*

BUILDING ACTIVITY (pp. 448–454)

Urban Districts.—Statistics of building permits issued in cities, boroughs, and town districts (to which are added four counties and two road districts in which the population is predominantly urban) during the year ended 31st March, 1951, are given below, together with (for purposes of comparison) statistics for the previous year.

BUILDING PERMITS ISSUED: URBAN DISTRICTS

Year Ended 31st March,
1951.1930.
Private dwellings—  
  Now buildings—  
    Number11,53011,379
    Value£20,822,500£22,990,985
  Value of alterations and additions£2,436,717£2,883,287
Other buildings—  
  New buildings—  
    Number1,0991,294
    Value£3,396,987£4,688,709
  Value of alterations and additions£3,709,324£4,467,666
Total—  
  New buildings—  
    Number12,62912,673
    Value£24,219,487£27,679,694
  Value of alterations and additions£6,146,041£7,350,953
      Grand total, value£30,365,528£35,030,647

Rural Districts.—Building permit statistics for rural districts have been collected from counties (excluding the four counties and two road districts which are included in urban districts) also the Road Boards on Waiheke Island. The total value of rural building operations for the year 1950–51 was £13,738,957, an increase of £1,627,070 or 13.4 per cent. on the 1949–50 figures. The number of new private dwellings in rural districts was 6,470 in 1950–51 compared with 6,127 in 1949–50 and 5,034 in 1945–49.

All Districts (Urban and Rural).—The total value of building operations represented by permits or authorizations issued in the year ended 31st March, 1951, in both urban and rural districts, was £48,769,604 (£42,477,415 in the March year, 1950), included in this total were 17,849 permits, &c., for private dwellings (17,657 in the March year, 1950). The totals include State buildings commenced in the years quoted, as do the statistics under the separate headings, urban and rural.

Dwelling Units Completed.—Local authorities which supply building permit figures were also requested to supply the number of now dwelling units which were completed in their districts. Estimates have been made in some cases where it was not possible to supply data. While absolute accuracy for the statistics cannot be claimed, it is believed they will give reasonably approximate results and also reasonably accurate comparisons of year to year changes.

The total figures on this basis for new dwelling units completed during 1950–51 were 16,400 compared with 15,800 in 1949–50 and 15,200 in 1948–49. Those completed in urban districts numbered 10,900 in 1950–51, and in the previous years quoted, 10,600 and 10,500 respectively.

EXTERNAL TRADE

Statistics of external trade in the calendar year 1950, in continuation of the statistics included in pp. 940–998 of this Year-Book, are given below.

Total Commodity Trade.—Following are statistics of exports and imports in 1936–38 (yearly average), 1939, 1948, 1949, and 1950.

Calendar Year.Exports.Imports.Excess of Exports over Imports.
New Zealand Produce.Total Exports.
 £(000)£(000)£(000)£(000)
1936–38 (average)60,09160,61451,9478,667
193957,44858,04949,3878,662
1948146,469147,823128,20119,622
1949146,188147,366119,71327,653
1950182,392183,802157,89625,906

Commodity trade statistics for the calendar year 1950 show some interesting features. The value of both exports and imports during 1950 was the highest on record. The total trade per head of mean population in 1950 was £177 17s. 7d. (exports £95 13s. 8d. and imports £82 3s. 11d.), a figure substantially higher than any recorded previously.

Although price changes have contributed materially to the high values of commodity trade—both exports and imports—compared with the pre-war years 1936–38, there has also been a considerable upward movement in the volume of trade. The following table illustrates this fact.

INDEX NUMBERS OF VALUE AND VOLUME OF TRADE

Calendar Year.Exports.Imports.
Value Index.Value at 1936–38 Prices.Value Index.Value at 1936–38 Prices.
£(m.)Volume Index.£(m.)Volume Index.
Total.Per Head.Total.Per Head

* Not yet available.

1936–38 (average)10060.610010010051.9100100
19399659.998969549.09492
194721471.911910524860.2115102
194824474.412310624759.011499
194924377.312810823160.511799
195030374.3123102****

Comparing the 1949 and 1950 figures with the pre-war averages, it will be found that exports have increased by 143 and 203 per cent. in value respectively. The total volume of imports in 1949 was 17 per cent. above the pre-war (1936–38) volume, while the volume of imports per head was one per cent. below the pre-war figure. The volume of exports in 1950 was 23 per cent. above the 1936–38 level, compared with 28 per cent. above in 1949.

Exports.—As indicated earlier, New Zealand's export commodity trade reached a record level in 1950, an increase of 25 per cent. in value being recorded between 1949 and 1950. The increase was almost wholly accounted for by the higher returns from wool (£28.1 million), hides, pelts, and skins (£3.3 million), cheese (£1.6 million), and frozen meat (£1.3 million). Items of some importance in which decreases in exports were recorded were butter, timber, and apples. An indication of the progress of exports in the main groups of commodities is afforded by the following table.

VALUE OF EXPORTS

Calendar Year.Butter.Cheese.Frozen Meat.Wool.Hides, Pelts, and Skins.
 £(000)£(000)£(000)£(000)£(000)
193716,9865,37214,69019,0703,874
193816,5205,93515,09212,1852,383
193916,1115,87015,39111,6662,541
194728,83611,62129,35331,93310,383
194833,75811,19728,62444,4969,473
194935,45012,67427,23046,5536,679
195034,85614,31228,49674,6539,996

Apart from the question of values, a special interest attaches to progress in the volume of our export trade in major export commodities. In the following table the fluctuations in the quantities of exports of butter, cheese, meat, and wool since 1939 are shown.

Calendar Year.Butter.Cheese.Frozen Meat.Wool.

* Record.

 Tons (000)Tons (000)Tons (000)Tons (000)
1939122.283.9295.3123.8
1940131.1101.7348.8*134.1
1941113.2118.3264.296.3
1942117.2134.4*287.1137.3
194399.3100.5220.692.3
1944115.377.7207.884.2
1945103.587.4282.474.1
1946101.875.7337.3163.1
1947127.687.0347.8167.5
1948135.675.6343.5188.0
1949147.693.9344.1191.8*
1950137.499.9338.0175.9

Quantities of meat, wool, and cheese exported in 1950 were materially above the pre-war totals, but, with the exception of cheese, were below the 1949 levels. Exports of butter were still considerably below the record figure of 148,800 tons for 1937, and were also less than the substantial figure for 1949. The figures do not include wartime supplies to Allied Forces under mutual-aid arrangements, a factor of particular importance in 1943 and 1944.

Direction of Export Trade.—Details are given below showing for the year 1950 the value of exports to each of the principal countries trading with New Zealand.

Country.Total Exports.
 £
United Kingdom121,734,371
Republic of India763,375
Pakistan202,384
Ceylon1,438
Federation of Malaya343,004
British West Africa23,667
Union of South Africa289,742
Canada3,556,916
Australia4,779,368
Fiji293,874
Western Samoa240,016
Other British Commonwealth countries988,861
    Totals, British Commonwealth countries133,217,016
Belgium2,952,099
Denmark900,291
Finland36,518
France8,076,593
Germany5,940,239
Italy1,900,362
Netherlands3,419,220
Czechoslovakia1,004,270
Poland1,563,578
Yugoslavia585,706
Russia (U.S.S.R.)1,034,587
Sweden394,593
Switzerland77,428
Bahrein Islands2,952
Iran127,470
Japan996,828
United States of America18,387,389
Other countries2,580,033
    Totals, other countries49,980,156
Ships' stores604,744
    Totals, all countries183,801,916

Trade with British Commonwealth countries in 1950 accounted for 72.5 per cent. of the total exports.

FINANCE

Banking and Currency

Reserve Bank (p. 588).—The weekly averages of liabilities and assets of the Reserve Bank of New Zealand during the calendar year 1950 are shown below, together with the corresponding figures for the year 1949.

Weekly Average for Calendar Year.
1949.1950.
Liabilities—££
  Total liabilities (including other)142,255,252152,333,375
  Bank-notes51,311,53155,126,290
  Demand liabilities—  
    State11,383,92915,562,435
    Banks73,837,10874,239,149
    Other354,2831,115,190
Assets—  
  Total assets (including other)142,255,252152,333,375
  Investments41,855,36931,312,874
  Sterling exchange reserve (in New Zealand currency)48,995,31751,319,276
  Advances—  
    Marketing organizations3,481,5305,095,797
    Other purposes42,234,64157,623,266

Trading Banks (pp. 588–594).—A statement of the principal statistics of the operation of trading banks during the calendar years 1949 and 1950 is given below.

Weekly Average for Calendar Year.
1949.1950.
Bank debits—££
  Government6,329,2257,119,694
  Other46,160,82656,242,378
Bank clearings26,228,21233,829,203
Advances, including notes and bills discounted83,357,04294,715,117
Deposits—  
  Total186,092,099202,200,423
  Government2,201,9712,427,667
  Not bearing interest142,597,894157,571,265
  Bearing interest41,292,23442,201,491
Reserve Bank notes—  
  Notes held by trading banks8,776,5019,898,343
  Net note circulation42,535,03045,227,947
Ratio of advances to deposits44.7946.84

An analysis of advances of the trading banks at quarterly intervals is published by the Reserve Bank of New Zealand, and the classification as at the last Wednesday in March of 1950 and 1951, is contained in the following table. Figures for earlier years will be found on page 593.

Advances toAs at Last Wednesday in March,
1950.1951.
 £(000)£(000)
Farmers17,30519,154
Industries allied to primary production21,06532,188
Other manufacturing and productive industries14,77420,477
Merchants—  
  Wholesalers10,40713,792
  Retailers8,25811,347
Transport2,1453,064
Other20,69530,710
        Total advances94,649130,732

Overseas Assets of Banks (p. 598).—In the following table the revised series of overseas assets of banks (on account of New Zealand business only) are shown.

Overseas Assets.
Average for Calendar Year.As at End of March, 1951.
1949.1950.
Trading banks' overseas assets—£(000)£(000)£(000)
  In London18,02121,78335,020
  Elsewhere4,0004,7263,851
Reserve Bank's overseas assets—   
  Sterling exchange48,74155,92960,970
  Other overseas assets7,3977,4137,378
Total gross overseas assets78,15989,851107,219
Overseas liabilities of trading banks7,4948,1227,367
Overseas liabilities of Reserve Bank485694
Net overseas assets70,61781,67399,758

Savings-banks (pp. 600–603).—A summary of statistics of savings-banks at 31st March, 1951, is given below.

Post Office Savings-bank.Trustee Savings-banks.National Savings Accounts.
Number of depositors1,407,241359,780 
 £££
Total amount of deposits during year86,395,32920,720,0209,468,601
Total amount of withdrawals during year85,190,00819,609,8425,311,371
Excess of deposits over withdrawals1,205,3211,110,1784,167,230
Interest credited to depositors3,915,006839,4851,385,699
Total amount to credit of depositors at end of March, 1951176,102,77936,892,64053,214,076

Overseas Receipts and Payments.—The following statement gives statistics of exchange-control transactions for the year ended 31st March, 1951, on the basis of the revised classification. Figures for earlier March years given on page 599 are based on the former classification and the items are not directly comparable with those presented here. Comparable items for the calendar year 1950 are, however, given on page 946. All figures quoted are taken from Reserve Bank sources.

Year Ended 31st March, 1951.
Receipts.Payments.Net Credit (+) or Debit (-).
Merchandise—£N.Z.(000)£N.Z.(000)£N.Z.(000)
  Exports208,025  
  Licensed imports 129,417 
  Decontrolled imports 15,548 
  Other imports 24,742 
    Totals, merchandise208,025169,707+ 38,318
Transport: Freights, fares, ships' charters1,0502,393− 1,343
Travel: Private and business (exclusive of fares)1,2005,412− 4,212
Insurance—   
  Insurance510670 
  Reinsurance 364 
    Totals, insurance5101,035− 525
International investment income—   
  Interest, dividends, and other private investment income2,4094,111 
  Interest on Government and local authority loans 2,673 
    Totals, international investment income2,4096,784− 4,375
Government transactions—   
  Current expenditure by New Zealand Government overseas 3,845 
  Current receipts by New Zealand Government and expenditure by other Governments in New Zealand1,901  
    Totals, Government transactions1,9013,845− 1,944
Miscellaneous current transactions—   
  Commissions, royalties, rebates, &c.8511, 625 
  Films and entertainments 599 
  Unilateral transfers (immigrants' transfers, personal remittances, charitable, legacies, &c.)1,8256,526 
  Expenses of business firms5,0531,278 
  Other current transactions457295 
    Totals, miscellaneous current transactions8,18710,323− 2,136
Capital transfers—   
  Private3,6594,196 
  Government 338 
  Local authority 461 
    Totals, capital transfers3,6594,996− 1,337
Unidentified860 + 860
    Grand totals227,802204,495+ 23,307

PUBLIC FINANCE

Consolidated Fund (pp. 471–473).—The following table contains a summary of the receipts of the Consolidated Fund for the financial years ended 31st March, 1950 and 1951.

1949–50.1950–51.
 ££
Taxation103,853,465122,180,538
Interest on capital liability—  
  Post and Telegraph704,000811,128
  Electric supply1,412,9771,640,594
  Other accounts1,940,1012,192,566
Interest on other public moneys1,829,2761,922,002
Profits on trading undertakings2,162,1111,770,351
Departmental receipts13,094,70413,239,636
    Totals124,996,634143,756,815

The next table, contains a summary of payments from the Consolidated Fund for the financial years 1949–50 and 1950–51.

1949–50.1950–51.
Permanent appropriations—££
  Civil list97,09593,898
  Debt services22,485,04926,313,986
  Highways234,026253,882
  Miscellaneous254,715510,455
  Superannuation (subsidy and contribution)2,590,0002,850,000
    Totals, permanent appropriations25,660,88530,022,221
Annual appropriations—  
  Legislative170,618192,084
  Prime Minister's Office164,26311,792
  External Affairs733,009736,638
  Finance16,691,71011,136,350
  General Administration6,883,59410,211,920
  Law and Order1,930,2102,142,319
  Defence9,822,12813,942,306
  Maintenance of Public Works and Services7,711,7908,059,114
  Maintenance of Highways4,140,0124,044,936
  Development of Primary and Secondary Industries8,451,2599,762,714
  Social Services—  
    Health8,865,14710,247,291
    Education11,613,63013,345,564
    War and other Pensions5,368,2285,597,335
    Payment to Social Security Fund12,000,00014,000,000
  Other Services not provided for482,4092,051,011
    Totals, annual appropriations95,028,007105,481,377
    Grand totals120,688,892135,503,598

Amounts transferred to the Social Security Fund were £12,000,000 in 1949–50 and £14,000,000 in 1950–51, while the sum of £4,307,742, being the surplus for the 1949–50 year, was transferred to the Public Works Account during the year ended 31st March, 1951.

Taxation (pp. 481–498).—Particulars of revenue from taxation for the financial years 1948–49, 1949–50, and 1950–51 are contained in the following table.

Item of Revenue.1948–49.1949–50.1950–51.
Consolidated Fund—£££
  Customs revenue19,111,48621,474,53323,600,062
  Beer duty4,555,3744,822,3405,036,145
  Sales-tax14,105,22414,785,32016,827,106
  Motor-vehicles taxation3,613,7433,640,1163,996,629
  Death duties6,032,3905,713,7507,254,012
  Land-tax916,120967,3861,043,203
  Income-tax49,007,67248,483,45059,441,839
  Other3,719,7303,966,5694,981,542
    Totals101,061,739103,853,464122,180,538
Social security taxation—   
  Social security charge29,378,38531,702,57035,766,236
  Registration fee, &c.125285201
    Totals29,378,51031,702,85535,766,437
    Grand totals130,440,249135,556,319157,946,975

A summary showing the amounts received from direct taxes on income and from all sources during the last ten years is now given.

Year.Direct Taxes on Income (Including War Social Security Charges on Income).Total Taxation.
Amount.Per Head of Mean Population.Percentage of Total Taxation.Amount.Per Head of Mean Population.
 ££s.d. ££s.d.
1941–4239,845,130248958.568,163,25641162
1942–4353,977,4413218261.487,940,84453124
1943–4463,311,9653813362.8100,839,48461117
1944–4568,438,477412363.0108,681,81465510
1945–4671,582,8704116962.3114,954,8736739
1946–4763,873,162360756.5113,119,04663162
1947–4863,581,244351752.0122,275,9116792
1948–4978,386,0574261060.1130,440,2497093
1949–5080,186,0204271159.2135,556,31971136
1950–5195,208,075496760.3157,946,97581169

Stale Idebtedness (p. 501).—The public debt as at 31st March, 1951, amounted to £693,424,678, an increase of £23,353,336 as compared with a year earlier.

SOCIAL SECURITY AND WAR PENSIONS (pp. 519–549)

Information concerning the various benefits under the Social Security Act, 1938, is contained in Section 26 of this Year-Book. The increases granted during 1950 and early in 1951 have been incorporated in the text.

An announcement by the Government in June, 1951, notified increases in the economic pensions for disabled ex-servicemen and for war widows, &c., such increases giving effect to the major recommendations of the Commission of Inquiry on war pensions appointed in 1950. These increases, which have not been incorporated in the text on war pensions (pp. 540–549), are as follows, the effective date being the 15th February, 1951:—

Income Provisions

  1. The amount of a war disablement pension or of a basic war widow's pension is now no longer taken into account as income when determining social security benefits and war veterans' allowances.

  2. An allowable income of £1 10s. a week is permitted without reduction of the amount of economic pension to which entitled.

Economic Pensions

  1. The maximum amount that may be granted by way of economic pension, in addition to the statutory pension for disablement, is increased from £2 12s. 6d. to £2 17s. 6d. a week for a member.

  2. The maximum economic pension for a widow with a dependent child or children is increased from £2 2s. 6d. a week to £2 12s. 6d. a week. (The mother's allowance of £2 a week is, of course, also payable, in addition to the basic war widow's pension.)

  3. The maximum economic pension for any other war widow is increased from £1 12s. 6d. to £2 17s. 6d. (the basic war widow's pension is also payable).

  4. An economic pension of up to £1 17s. 6d. (formerly £1 7s. 6d.) may be granted to a partially dependent mother of a deceased member in addition to her ordinary war pension.

  5. In a case of total dependency on one son or partial dependency on two or more deceased sons, the maximum economic pension of a widowed mother is increased from £1 12s. 6d. to £2 17s. 6d. a week.

War Pensions and Emergency Reserve Corps Pensions to Wives.—The rate of pension paid to the wife of a totally disabled war pensioner is now at a flat rate of £2 17s. 6d. in lieu of the former graduated rates (according to rank of member) applicable to wives with and without dependent children. The rate of pension payable to a wife of a member with an Emergency Reserve Corps pension is now £2 17s. 6d. instead of the former amounts of £1 12s. 6d. and £2 2s. 6d. a week for a wife without a dependent child and with a dependent child respectively.

Clothing-allowances to Amputees, &c.—These have been increased from £16–£18 per annum for amputees to a rate of £22–£24 per annum, and for others obliged to use any mechanical or other appliance from £10 to £16 per annum.

A summary showing particulars of the various social security benefits and war pensions in force at the end of March, 1951, together with total payments during the financial year 1950–51 is as follows:—

Class of Benefit or Pension.As at 31 March, 1951Payments during Year Ended 31st March, 1951.
Number in Force.Annual Value.

*Exclusive of £66,900 recoveries under maintenance orders, widows' benefits.

Social security benefits— ££
  Universal superannuation70,3042,495,7922,336,275
  Age122,18717,533,83517,150,839
  Widows'12,9092,203,5602,142,232*
  Orphans'33434,90033,061
  Family263,49315,415,10115,289,346
  Invalids'8,9921,444,9801,429,276
  Miners'592125,844125,189
  Sickness4,504 1,042,050
  Unemployment10 5,355
  Emergency2,260 292,069
      Totals485,585 39,845,692
War pensions—   
  1914–18 War18,5732,274,8512,311,606
  1939–45 War25,9011,938,8351,970,236
  War veteran's allowance4,7761,051,675964,882
  South African War373,8883,726
  Mercantile-marine pensions262,1012,359
  Emergency Reserve Corps111,7101,628
      Totals49,324 5,254,437
Sundry pensions and annuities20537,79135,641
      Grand totals535,114 45,135,770

Payments from the Social Security Fund on account of medical benefits, &c., for the year ending 31st March, 1951 are as follows:—

Benefits.Payments during 1950–51.
 £
Medical2,661,166
Hospital2,018,963
Maternity885,316
Pharmaceutical2,097,000
Supplementary1,060,938
Total£8,723,383

PRICES

Retail Prices (pp. 694–701).—Details of the consumers' price index for the quarters ended 31st December, 1950, 31st March, 1951, and 30th June, 1951, are given below together with the all-towns index numbers for the calendar year 1950.

CONSUMERS' PRICE INDEX.—QUARTERLY INDEX NUMBERS (ALL GROUPS), TWENTY-ONE TOWNS COMBINED

Base: Weighted average twenty-one towns, first quarter, 1949 (= 1000)

Food.Housing.Fuel and Lighting.
Meat and Fish.Fruits, Vegetables, and Eggs.Other Foods.All Foods.Rent.Other HousingAll Housing
Calendar year—        
  195011311067114411231014103210251135
Quarter ended—        
  1950—        
    31st December12061098123811991021103210281208
  1951—        
    31st March12321071124712041039107210591212
    30th June12951177128712641039107210591237
Clothing and Footwear.Miscellaneous.All Groups.
Clothing.Footwear.Clothing and Footwear.Household Durable Goods.Other Commodities.Services.All Miscellaneous.
Calendar year—        
  195010271148104510131007104510211066
Quarter ended—        
  1950—        
    31st December10631188108210411008105810321105
  1951—        
    31st March10881216110710891015105810461121
    30th June11751245118611511024112310861169

CONSUMERS' PRICE INDEX.—QUARTERLY INDEX NUMBERS FOR INDIVIDUAL TOWNS AND GROUPINGS

Base: Weighted average twenty-one towns, first quarter, 1949 (= 1000)

Quarter Ended 31st December, 1950.Quarter Ended 31st March, 1951.
Food.Housing.Fuel and Fighting.Clothing and Footwear.Miscellaneous.All Groups.Food.HousingFuel and LightingClothing and Footwear.Miscellaneous.All Groups.

*In calculating these all-groups index numbers, the missing aggregates for the Clothing and Footwear and Miscellaneous groups were supplied from the first ten towns.

Auckland117310461184111310251103119010571184113610371119
Wellington120410651116107810421111119210961119110110531120
Christchurch120510351201104010281099120410871204107010431117
Dunedin1170102798110591037108311901063988109310621109
  Four chief centres118710471144108310311102119310741146110910461118
Hamilton12359811212106110351107122910201214109010461120
Napier12189941384110110331117123210311423112410401136
New Plymouth12179981364109610281114121210371363111610351125
Palmerston North123810181271109210431124124010721303111310581144
Nelson120910251370107810351115122710621326110310401131
Invercargill12269971300107510361113125010311300109910611137
  Six provincial towns122610001312108510351115123210411323110910471132
Whangarei12269821517  1124*124310141548  1144*
Tauranga125810171143  1118*126010561144  1133*
Rotorua12549881221  1115*124610261221  1127*
Gisborne12039551567  1111*12279881567  1132*
Wanganui12049771396  1111*12059941400  1122*
Masterton12419751103  1120*122910041411  1129*
Blenheim12239981474  1119*122510341483  1132*
Greymouth12099451254  1090*120210251251  1109*
Ashburton12119361668  1102*120410001668  1121*
Timaru118810021169  1087*117610351169  1099*
Oamaru12299561401  1108*12409931424  1132*
  Eleven other towns12189761361  1107*121810151363  1123*

Wholesale Prices (pp. 701–703).—Index numbers of wholesale prices for the year 1950 and for December, 1950, are shown below:—

WHOLESALE PRICES.—INDEX NUMBERS BY GROUPS.—BASE: 1926–30 (= 1000)

Group.1950.December, 1950.

*Monthly index numbers not computed for this item.

1. Foodstuffs, &c., of vegetable origin—  
    A. Agricultural produce22042540
    B. Fresh fruit and vegetables1709*
    C. Milled agricultural products12281391
    D. Other foods and groceries of vegetable origin21782261
    A–D. Four sub-groups combined19642130
2. Textile manufactures21332191
3. Wood and wood products19592038
4. Animal products—  
    A. Meats16551713
    B. Semi-manufactured animal products (not foods)14461513
    C. Leather21912332
    D. Other foods and groceries of animal origin14271454
    A-D. Four sub-groups combined16141666
5. Metals and their products24842542
6. Non-metallic minerals and their products—  
    A. Mineral oils17481829
    B. Coal19732268
    C. Other non-metallic minerals and their products17831880
    A-C. Three sub-groups combined18452014
7. Chemicals and manures15801656
        All groups combined19842083

WHOLESALE PRICES.—INDEX NUMBERS BY CLASSES.—BASE: 1926–30 (= 1000)

1950.December, 1950.
Consumers' goods—  
  Class I: Foodstuff's17441842
  Class II: Non-foods20932172
Producers' materials, &c.—  
  Class III: Materials for building and construction21582220
  Class IV: Materials for other industries20432153
Classes I and II combined18841980
Classes III and IV combined20682168
Locally produced commodities17381859
Imported commodities21682248
    All classes combined19842083

Export Prices (pp. 703–705).—Index numbers of export prices for the year ended 30th June, 1950, are as follows:—

EXPORT PRICES.—INDEX NUMBERS (YEAR ENDED 30TH JUNE, 1950).—BASE: 1909–13 (= 1000)

Dairy-produce2365
Meat2657
Wool4515
Other pastoral produce3919
All pastoral and dairy produce3184
Agricultural produce2241
Timber5128
Minerals2581
All groups combined3162

The wool group index number was 7382 for the calendar year 1950, and 11854 for the quarter ended 31st December, 1950.

Comparative Table.—With reference to the comparative table of index numbers on the base: 1936–38 (— 100) shown on page 706, the following additions for 1950 may he made—wholesale prices: locally produced commodities, 183; imported commodities, 209; all groups, 198. Retail prices (all groups), 155.

Share Prices (pp. 707–710).—Index numbers of share prices in 1950 together with the average for the three months ending March, 1951, are given below.

Group.Index Numbers Base Average for each Group, 1938 (= 1000).
Average for 1950.Average for 3 Months Ended March, 1951.
Frozen meat21252466
Woollens19331980
Gas934885
Timber17922285
Minerals14001451
Miscellaneous (including breweries)14631564
    All industrial groups14991622
Banks12201313
Insurance20122346
Loan-agency companies21742664
Miscellaneous20322179
    All finance, &c., groups17952035
    All groups combined16471828

Monthly statistics for 1950 and the first five months of 1951 are given below:—

SHARE PRICES MONTHLY INDEX NUMBERS, YEAR 1938 (= 1000)

1950.1951.
Industrial Groups.Finance Groups.All Groups.Industrial Groups.Finance Groups.All Groups.

*Month of December interpolated.

January144016841562163920211830
February146317201592161720461831
March146917161593161120371824
April146217171590159920121806
May146217421602160320221812
June148518061646   
July147917791629   
August150418091656   
September153518271681   
October153318681700   
November155919061732   
December1599*1963*1781*   

Summary of Price Movements.—The following additions for 1950 may be made to the table on page 710 showing price index numbers on the base: first quarter, 1949 (=1000)—Retail: food, 1123; all groups, 1066. Wholesale: locally produced items, 1155; imported items, 1061; all groups, 1093. Share prices, all groups, 1121.

LABOUR STATISTICS

Wage-rates (pp. 712–715).—Index numbers of nominal wage-rates of adult male wage-earners in 1950 and at 31st March. 1951:—

Industrial Group.Average for Year 1950.As at 31st March, 1951.
Base: All Groups 1926–30 (= 1000)Base: All Group 1926–30 (= 1000).Base: All Groups 1926–30 (= 1000).Base: Each Group 1926–30 (= 1000).
Provision of—    
Food, drink, &c.1916173221161912
Clothing, footwear, and textiles1825178920442004
Building and construction1752170719561905
Power, heat, and light1794163820041830
Transport by water2010181722332018
Transport by land1744166119451852
Accommodation, meals, and personal service1651169918501904
Working in or on—    
Wood, wicker, sea-grass, and fibre1821169020821932
Metal1894170921281920
Stone, clay, glass, and chemicals1710167019101866
Paper, printing, &c.1896159321331791
Skins, leather, &c.1688161518811800
Mines and quarries1841176620581974
The land (farming pursuits)1681218618632422
All groups combined1793179320012001

Effective Weekly Wage-rates (p. 718).—The following table shows nominal and effective weekly wage-rates of adult male workers for the year 1950 and the first quarter of 1951. The base of the index numbers is in each case the average of the five years 1926–30 (= 1000).

Year.Retail Prices (All Groups).Nominal Weekly Wage-rates.Effective Weekly Wage-rates.
Males.Females.Males.Females.

*Not available.

195014111793*1271*
1951—     
1st quarter14842001*1348*

Average Rates of Wages (pp. 720–721).—The following table gives the proscribed minimum average weekly wage-rates as at the 31st March, 1951, the series being confined to adult males.

Occupation.Average Wage (Four Principal Districts) at 31st March, 1951.
Adult Maless.d.
Bakers—  
  Journeymen1856
  Labourers1594
Butchers—  
  First shopmen2047
  Second shopmen1895
Butter-factory employees—Churning and butter making: General hands16311
Flour-milling—  
  Kilnmen1783
  Assistant smuttermen1698
  Rollermen1937
Meat-freezing—  
  Slaughtermen, per 100 sheep7910
  General hands1820
Meat-preserving—  
  Boners2220
  General hands1820
Sausage-casing making: General hands1818
Aerated water and cordial making—  
  Cordial-makers1755
  Bottle-washers16511
Brewing labourers17811
Tailors—  
  Journeymen18511
  Factory hands1802
Boot operatives1783
Woollen-mills—  
  Spinners1840
  General hands16410
Building-Bricklayers1881
  Carpenters and joiners1927
  Plasterers1921
  Plumbers (competent)1901
  Builders' labourers1756
  General labourers1573
Sawmilling—  
  Engine-drivers19711
  Sawyers2019
  Tailers-out1822
  Yardmen, head19711
  General hands1711
  Boatbuilding: Shipwrights1943
Metal-works, &c.—  
Blacksmiths, floormen1840
  Boilermakers, journeymen1899
  Iron and brass moulders1831
  Tinsmiths, journeymen1884
  Engineering fitters, &c.1923
  Electrical workers1908
  Motor mechanics18511
Skin and leather workers—  
  Curriers1774
  General hands1572
Mineral and stone workers—  
  Brickmakers1780
  General hands1620
Mining (coal)—  
  Surface—  
    Tippers1753
    Labourers1753
  Miners (on day wages, per shift)4010
  Truckers1899
Mining (gold): Miners in rises or winzes with machines1673
Quarrymen16611
Agricultural and pastoral workers—  
  General farm hands1226
  Threshing-mill hands, per hour45
  Ploughmen1226
  Shearers (per 100 sheep shorn)596
  Shepherds1226
  Wool-pressers2146
  Dairy-farm hands1456
Railways—  
  Engine-drivers, average third and sixth years1928
  Firemen, average second and ninth years1765
  Guards, average first and third years1856
Tramways—  
  Motormen1783
  Conductors1707
Shipping and cargo-working—  
  Assistant stewards, first grade1725
  Assistant stewards, second grade1664
  Chief cooks2134
  Second cooks1906
  A.B. seamen1840
  Ordinary seamen, first class1438
  Waterside workers: Ordinary cargo1850
Hotel workers—  
  Chefs17711
  Waiters11911
Miscellaneous—  
  Soft-goods assistants (male)1813
  Grocers' assistants1730
  Warehouse storemen1669

NOTE.—The following perquisites (as assessed for statistical purposes) as at the 31st March, 1951, should be added to the listed occupations: General farm-hands, ploughmen, shepherds, and dairy-farm hands, 28s. 9d. per week for board and lodging; shearers and wool-pressers, 6s. per day for rations; assistant stewards (first and second grade), chief and second cooks, able and ordinary seamen, 34s. 6d. per week as value of board and lodging; and hotel chefs and waiters, 38s. per week as value of board and lodging.

Half-yearly Surveys of Employment (pp. 785–790).—Following is a summary of the employment statistics for the 15th October, 1950:—

Primary Industry (Other than Farming, Fishing, and Hunting).*Secondary Industry.Transport and Communication (Other than Waterfront Work).Distribution and Finance.Domestic and Personal Services.Administration and Professional.Seasonal Industries.Totals, All Industries Covered.

*The number of persons engaged on farms, including occupiers, on 31st January, 1950, was: males, 109,461; females, 16,228: total, 125,689.

Male employees15,754143,20448,27057,7289,91938,45615,263328,594
Male working proprietors67811,3861,5647,0872,3211818923,306
Female employees24941,3596,76531,92812,77433,9001,459128,434
Female working proprietors31,185321,5651,48516654,441
Number of establishments75114,4522,22412,3883,8442,90565637,220

The figures shown in the secondary industry column are further subdivided as follows:—

Food, Drink, and Tobacco (Other than Seasonal).Textiles, Clothing, and Leather.Building Materials and Furnishings.Engineering and Metal Working.Miscellaneous Manufacturing.Power and Water Supply.Building and Construction.Totals, Secondary Industry (Other than Seasonal).
Male employees8,93713,13818,08543,52415,6638,88834,969143,204
Male working proprietors1,1331,0221,2433,39169843,89511,386
Female employees4,90023,4711,0874,1446,30763281841,359
Female working proprietors457548207090  1,185
Number of establishments1,5072,0221,7804,0741,2062233,64014,452

Summary of Vacancies, Placements, and Disengaged Persons.—This table gives additional figures to those presented on page 792.

Vacancies at End of Month.Placements During Month.Disengaged Persons at End of Month.
Males.Females.Total.Males.FemalesTotal.Males.Females.Total.
Monthly average over calendar year—         
  195013,1659,28022,4451,3204951,81534438
Monthly total—         
  1951—         
    January15,0279,28624,3131,3488602,20814317
    February15,2599,11224,3711,5921,2902,88210515
    March14,9348,99723,9311,2667502,0169312

Industrial Disputes.—Statistics of industrial disputes in 1950 are given below. Figures for earlier years are shown on paces 801–808 of this Year-Book.

Disputes.Calendar Year 1950.
Total disputes129
Number of firms affected1,190
Number of workers involved89,792
Total duration (days)566½
Average duration (days)4.39
Working days lost271,475
Approximate loss in wages£514,236

MISCELLANEOUS

Transport

Shipping and Cargo Handled (pp. 210–220).—Statistics of entrances and clearances of vessels in the foreign trade in 1949 and 1950, and the total calls made in the foreign and coastal trade for the same years, are shown in the following table. The tonnage of cargo handled is also given.

Calendar Year.
1949.1950.
Entrances—  
  Overseas—  
    Number of vessels563597
    Net tonnage2,472,6562,688,223
Clearances—  
  Overseas—  
    Number of vessels556575
    Net tonnage2,444,9682,624,889
Total calls made—  
  Overseas—  
    Number of vessels1,5281,529
    Net tonnage5,939,2926,364,068
  Coastal—  
    Number of vessels13,11712,833
    Net tonnage4,298,3884,366,170
  Total—  
    Number of vessels14,64514,362
    Net tonnage10,237,68010,730,238
Tonnage of cargo handled—  
  Inwards5,189,0065,401,241
  Outwards2,992,3623,100,303
  Transhipped227,501229,588
Total manifest tonnage8,636,3708,960,720

Statistics of shipping movement and cargo handled at New Zealand ports in 1949 and 1950 are given below.

Total Shipping Movement.Total Cargo handled.
1949: Net Tonnage.1950: Net Tonnage.1949: Tons.1950: Tons.
 (000)(000)(000)(000)
Auckland3,7994,0112,6422,830
Wellington6,4666,9162,2132,278
Lyttelton3,9353,893942945
Dunedin1,5761,521499528
Other ports4,5764,9122,3402,380
    Totals20,35221,2538,6368,961

In the following table the country of registry of inwards overseas shipping in 1950 is shown.

Country of Registry.Calendar Year 1950.
Number of Vessels.Net Tonnage.
British Commonwealth countries—  
  United Kingdom3381,848,320
  New Zealand117289,498
  Other British Commonwealth countries59182,727
Cargo4732,116,753
Ballast41203,792
      Totals, British Commonwealth countries5142,320,545
Other countries—  
  Norway36163,988
  Netherlands623,994
  Panama1378,697
  United States of America938,911
  Other countries1961,998
Cargo76347,250
Ballast720,338
      Totals, other countries83367,588
      Grand totals, all countries5972,688,133

Of the total net tonnage of inwards overseas vessels in 1950 (2,688,133 tons), ships on the United Kingdom registry accounted for 1,848,320 tons—68.8 per cent. of the total—while the distribution between British Commonwealth and other countries was: British Commonwealth, 86.3 per cent.; other, 13.7 per cent.

Railway Transport (pp. 224–232).—Summarized statistics of railway transport in the years ended 31st March, 1949, 1950, and 1951 follow.

Unit.Year Ended 31st March,
1949.1950.1951.

*Including road motor and other subsidiary services.

Passenger journeys—    
  Railways(000)26,16825,89524,824
  Railway road motor services(000)23,53225,69624,091
Tonnage of goods carried—    
  TimberTons (000)748759808
  Live-stockTons (000)725711645
  CoalTons (000)2,0842,1318,163
  Lime and manuresTons (000)1,5351,672
  Other goodsTons (000)4,5744,675
  TotalsTons (000)9,6669,9489,616
Net ton miles runMillions9711,0211,027
Revenue—    
  Railway operation£(000)15,33916,06218,500
  Total*£(000)18,59819,54122,085
Expenditure—    
  Railway operation£(000)16,78817,36118,725
  Total*£(000)19,70120,59722,080

Road Transport (p. 247).—Statistics of motor-vehicles licensed at 31st March, 1950 and 1951, are as follows:—

Class.As at 31st March,
1950.1951.
Cars233,812251,122
Trucks—  
  Light43,18646,714
  Heavy34,44038,207
  Passenger2,2252,143
Omnibuses1,4941,583
Taxis2,0212,116
Rental cars1,2001,393
Private-hire cars266308
Service-cars689734
Trailers32,86036,471
Dealers' cars1,6511,677
Local authority, &c., vehicles28,55734,509
Government vehicles10,14911,036
Motor-cycles20,73321,048
Dealers' motor-cycles8089
    Totals413,363449,150

REHABILITATION (pp. 831–840)

The number of ex-servicemen and ex-servicemen demobilized from the Forces, as recorded by the Rehabilitation Department, up to the end of March, 1951, was 211,788, of whom 145,054 had returned from overseas service and 66,734 had served with the home forces.

The following table gives particulars of rehabilitation-loan authorizations for the years ended 31st March, 1950 and 1951, and the totals to 31st March, 1951.

Class of Loan.Number.Amount.
1949–50.1950–51.Total to 31st March, 1951.1949–50.1950–51.Total to 31st March, 1951.
    £(000)£(000)£(000)
Purchase of farm, &c.9621,0327,6734,8896,28134,780
Housing—      
Erection1,8863,26115,8232,7545,58923,633
Purchase2,5352,53119,6492,4472,81819,788
Tools of trade62391,4232147
Furniture7,2835,90849,6596785624,600
Business1,4149409,6679106316,124
Miscellaneous109975631727120
Totals14,25113,808104,45711,69715,90989,092

Included in the foregoing figures are 18,764 supplementary housing loans for £2,619,000. These loans, which are not repayable so long as the ex-serviceman or his dependants continue in occupation of the property, are granted to bridge the gap between present-day costs and normal values, and each case is considered on its merits.

The figures shown in the table are exclusive of 2,779 suspensory loans (2,617 residential and 162 farm) amounting to £581,005 (£461,805 residential, £119,200 farm) made up to the 31st March, 1951. An increase in the maximum rehabilitation housing loan for the purchase of an existing dwelling from £1,500 to £1,800, with a corresponding increase in the supplementary interest-free loan, was announced by the Acting-Minister of Rehabilitation on the 18th June, 1951. The 5 per cent. supplementary interest-free loan would now be payable on properties costing up to £1,800 and would taper off from that point. Higher limits for the supplementary loan were provided where families with three or more children were concerned.

In addition to loans for specific purposes, ex-servicemen may receive financial assistance in certain circumstances by way of special grants or rehabilitation allowances. The total amount authorized in this manner to 31st March, 1951, was £474,045.

EDUCATION (p. 153)

The following table shows the number of scholars and students receiving instruction in the educational institutions of New Zealand during the years 1948 and 1949. Registered private schools are included.

1948.1949.

* Exclusive of students taking part-time courses with the Correspondence School, 1,630 in 1948 and 1,907 in 1949.

† Includes 917 students taking short courses at the agricultural colleges in 1948 and 566 in 1949.

Primary schools281,702292,035
Post-primary schools50,500*52,156*
Technical classes (part-time)20,30521,226
Universities12,84112,120
    Totals365,348377,537

Government expenditure on education amounted to £11,023,016 in the financial year 1948–49 and £13,744,960 in 1949–50.

OTHER MISCELLANEOUS STATISTICS

Radio Licences (p. 279).—The number of radio licences for receiving-stations in force on 31st March, 1950, was 449,347, and at 31st March, 1951, 463,418.

Commercial Failures (pp. 657–661).—The number of bankruptcies in the calendar year 1950 was 142 and the number of deeds of assignment, 19. Corresponding figures for the calendar year 1949 were: bankruptcies, 179; deeds of assignment, 23.

Horse-racing (p. 495).—The number of racing-days in the calendar year 1950 was 350, as compared with 326 in 1949. Totalizator investments totalled £26,050,000 in 1950 (£23,861,000 in 1949), while Government taxation totalled £2,456,000 in 1950 (£2,251,000 in 1949).

Land Transfers (pp. 283–285).—Transactions under the Land Transfer Act have been on a very heavy scale during the last three financial years. Particulars of transfers registered during each of the three years in the period which ended March, 1951, are now given.

Year Ended 31st March,
1949.1950.1951.
Town and suburban properties—   
  Number30,49433,18249,867
  Consideration £24,803,00027,629,00061,518,000
Country properties—   
  Number6,0705,8768,071
  Area Acres1,691,7431,783,3871,457,519
  Consideration £13,607,00013,034,00017,842,000
All properties—   
  Number36,56439,05857,938
  Consideration £38,410,00040,663,00079,360,000

Mortgages (pp. 651–656).—Particulars of gross totals of mortgages registered and discharged during the last three financial years are shown below. For several years during the war period the value of mortgages released exceeded the amount represented by mortgages registered, but from 1946–47 onwards this trend was reversed despite the fact that discharges were on a heavier scale than previously.

Year Ended 31st March,Registered.Discharged.
Number.Amount.Number.Amount.
  £ £
194929,58735,394,00026,64823,382,000
195030,36336,049,00026,09323,101,000
195143,89046,056,00035,51032,270,000

Divorces (p. 72).—Petitions filed: 1949, 2,001; 1950, 1,865. Decrees absolute granted: 1949, 1,892; 1950,1,633.

Justice. —Prisoners in gaols at end of calendar year (pp. 184–188): 1949, 990, or 5.26 per 10,000 of population; 1950, 1,083, or 5.58 per 10,000 of population.

Offences by juveniles dealt with in Children's Courts in 1949 (p. 189): Males, 2,675; females, 393; total, 3,068.

Guaranteed Prices for Butler and Cheese (pp. 324–325).—For the period 15th February to 31st July of the 1950–51 season, the fixed prices per pound of butter and cheese for export will be 28.59d. and 15.658d, (basic grades) respectively. These will enable prices to be paid by dairy companies to suppliers per pound of butterfat as follows: 31.407d. per pound of butterfat for butter and 33.407d. per pound of butterfat for cheese. The structure of the basic price per pound of butterfat for butter manufacture is: capital charges, 3.240d.; working-costs, 10.950d.; labour reward, 18.802d.; less standard allowance for pigs, 1.540d.; total, 31.407d.

Fisheries (p. 383): —

 1948.1949.
    Number of fishing-vessels operating813855
    Total weight of wet fish (hundredweight)446,265449,903
    Total value of wet fish£838,334£864,332
    Total value of principal classes of fishery products marketed£1,125,957£1,329,816

Chapter 1. SECTION 1–DESCRIPTIVE

Table of Contents

AREA AND BOUNDARIES.—The administrative responsibilities of New Zealand devolve over a large area, the land territories of which consist principally of a number of islands of varying size in the South Pacific Ocean, together with a large uninhabited tract in the Antarctic Ocean. While the two largest and most important islands, the North and South Islands of New Zealand, are separated only by a relatively narrow strait, the remaining islands or island groups are very much smaller and in general are widely dispersed over a considerable expanse of ocean.

The boundaries of New Zealand inclusive of its most outlying islands and dependencies range from the northern limit of the 8th degree of south latitude to south of the 60th degree of south latitude, the complementary extremes of longitude with origin Greenwich being from the 150th degree of east longitude to the 156th degree of west longitude.

The precise boundaries as they now exist were originally defined in the relevant proclamations, letters patent, and legislation mentioned in the pages immediately following; general statements are contained in the description next presented relating to those areas over which New Zealand exercises jurisdiction or administrative responsibility. In all instances the measurement of longitude refers to the number of meridians east or west of Greenwich.

In proceeding from north to south, the first area, including the Tokelau Islands some 300 miles north of Western Samoa or 2,300 miles approximately north of Wellington (the capital of New Zealand), extends from the 8th to the 10th degrees of south latitude and from the 171st to the 173rd degrees of west longitude. The second area encloses the Cook and associated islands distant from Wellington in a northeasterly direction approximately 2,100 miles (Cook (lower) Group) to 2,800 miles (Northern Group and Niue). The Cook (lower) and Northern Groups are bounded on the east and west by the 156th and 167th degrees of west longitude respectively, and on the north and south by the 8th and 23rd degrees of south latitude. Niue Island is situated in latitude 19° 10' south and longitude 169° 46' west.

Then follows a third zone covering the trust territory of Western Samoa, which is some 2,000 miles distant and contained within the 13th to the 15th degrees of south latitude and the 171st to 173rd degrees of west longitude.

Further south, and slightly north by east from New Zealand, a matter of roughly 1,000 miles from Wellington, is situated the Kermadec Islands group. These islands lie between the 29th and 32nd degrees of south latitude and the 177th and 180th degrees of west longitude.

New Zealand as defined after the extension of boundaries in 1863, constitutes the fifth and principal area. Its boundaries extend from the 33rd to the 53rd degrees of south latitude and from the 162nd degree of east longitude to the 173rd degree of west longitude.

The sixth area relates to the Ross Dependency which is administered by New Zealand and consists of the coasts of the Ross Sea with adjacent islands and territories between the 160th degree of east longitude and the 150th degree of west longitude, and south of the 60th degree of south latitude.

Jointly with the United Kingdom Government and the Government of Australia, New Zealand is responsible for the administration of the Trust Territory of the Island of Nauru. The administrative appointments for Nauru are made by the Australian Government, but New Zealand appoints a representative to the British Phosphates' Commission, which controls the working of the phosphate deposits.

For statistical purposes, the following classification of the administrative area of New Zealand is the most convenient, the actual areas being also given. It should be noted also that statistics for “New Zealand” refer to the group of islands shown in (a) only, unless it is expressly stated that the other islands as a whole or in part are included.

New Zealand:

 Area in Square Miles.
(a) Exclusive of Island territories— 
  North Island44,281
  South Island58,093
  Stewart Island670
  Chatham Islands372
  Minor islands— 
    Inhabited— 
        Kermadec Islands13
        Campbell Island44
        Uninhabited (areas in parentheses)—263
        Three Kings (3). 
        Solander (½). 
        Bounty (½). 
        Snares (1). 
        Antipodes (24). 
        Auckland (234). 
            Total New Zealand, exclusive of island Territories103,736
(b) Island Territories— 
  Tokelau Islands, comprised of Fakaofo Island, Nukunono Island, Atafu Island4
  Cook and associated islands, comprised of— 
    Cook (lower) Group84
    Rarotonga. 
    Mangaia. 
    Atiu. 
    Mitiaro. 
    Aitutaki. 
    Mauke. 
    Takutea. 
    Manuae and Te-au-o-tu. 
  Northern Group15
    Palmerston. 
    Penrhyn. 
    Manihiki. 
    Rakahanga. 
    Pukapuka. 
    Suwarrow. 
    Nassau. 
  Niue Island100
            Total New Zealand, inclusive of Island Territories103,939
Ross Dependency (Estimated)175,000
Trust Territory of Western Samoa1,133

The total area of the foregoing groups exclusive of the Ross Dependency and the Trust Territory of Western Samoa is 103,939 square miles. Elsewhere in this issue—viz., in the section of land tenure, settlement, &c.—the aggregate area of New Zealand appears as 66,390,700 acres—i.e., 103,736 square miles. The latter area does not include the Cook and associated islands or the Tokelau Islands.

The relevant Proclamations, defining from time to time the administrative area of New Zealand, are briefly referred to in the following paragraphs.

The Proclamation of British sovereignty over New Zealand, dated the 30th January, 1840, gave as the boundaries of what was then the colony the following degrees of latitude and longitude: On the north, 34° 30' S. lat.; on the south, 47° 10' S. lat.; on the east, 179° 0' E. long.; on the west, 166° 5' E. long. These limits excluded small portions of the extreme north of the North Island and of the extreme south of Stewart Island.

In 1842, by Letters Patent, and again by the Imperial Act 26 and 27 Vict., c. 23 (1863), the boundaries were altered so as to extend from 33° to 53° of south latitude and from 162° of east longitude to 173° of west longitude. The minor islands mentioned on page 2 were thus brought within the extended boundaries of New Zealand, being assigned to the appropriate province on the occasion of the 1847 Proclamation dividing the country into two provinces. The number of provinces was increased in later years, though all were finally abolished in 1875. By Proclamation bearing date the 21st July, 1887, the Kermadec Islands were declared to be annexed to and to become part of the then colony of New Zealand.

By Proclamation of the 10th June, 1901, the Cook Islands, and all the other islands and territories situate within the boundary-lines mentioned earlier were included as from the 11th June, 1901.

The territory of Western Samoa was formerly administered pursuant to a mandate conferred upon His Britannic Majesty, to be administered on his behalf by the Government of New Zealand, and confirmed by the Council of the League of Nations on 17th December, 1920. Following the replacement of the League of Nations by the United Nations, a draft Trusteeship Agreement for Western Samoa was prepared by the New Zealand Government and submitted to the General Assembly of the United Nations late in 1946. This draft agreement replaced the original mandate and thus brought the Territory within the framework of the international trusteeship system established under the United Nations Charter. Under the new agreement the New Zealand Government assumed direct responsibility for the administration of Western Samoa. The agreement was approved by the General Assembly on 13th December, 1946. Western Samoa is comprised of two large islands, Upolu and Savai'i, and the small islands of Manono, Apolima, Fanuatapu, Namu'a, Nu'utele, Nu'ulua, and Nu'usafe'e.

By Imperial Order in Council of the 30th July, 1923, the coasts of the Boas Sea (in the Antarctic regions), with the adjacent islands and territories between the limits specified earlier were declared a British settlement within the meaning of the British Settlements Act, 1887. This region was named the Boss Dependency, and placed under the administration of the Governor-General of New Zealand. The dependency is uninhabited.

By Imperial Orders in Council of the 4th November, 1925, the Tokelau Islands (consisting of the islands of Fakaofo, Nukunono, and Atafu, and the small islands, islets, rocks, and reefs depending on them, a total area of only four square miles) were excluded from the Gilbert and Ellice Islands Colony, and placed under the administration of the Governor-General of New Zealand. In accordance with a provision of the second of these Orders in Council, the Governor-General's authority and power in connection with the administration of the islands were, by New Zealand Order in Council of the 8th March, 1926, delegated to the Administrator of Western Samoa.

By the Tokelau Islands Act, 1948, which came into operation on 1st January, 1949, the Tokelau Islands were declared to form part of New Zealand. This Act emerged as the result of an agreement between the United Kingdom and New Zealand Governments.

GEOGRAPHICAL FEATURES—Coast-line.—Since the combined length of the North and South Islands extends just over a thousand miles, and since the width of neither Island exceeds 280 miles at its broadest point, New Zealand possesses a very lengthy coast-line in proportion to its area. With the exception of the low-lying North Auckland peninsula, the New Zealand land-mass lies along a south-westerly and north-easterly axis, parallel to the direction of its mountain-chains.

By reason of the latter fact the coast-line is, on the whole, not greatly indented; and, as a consequence, New Zealand is not well endowed with natural harbours. In the North Island, Auckland and Wellington are the only two safe natural harbours of which the fullest commercial use can be made. On the cast coast of the North Auckland peninsula several deep and sheltered harbours exist, but as the surrounding country is comparatively undeveloped they are of little economic consequence at present. In the South Island the Marlborough Sounds and the West Coast Sounds form perfect land-locked harbours, but owing to their situations and to the rugged nature of the terrain they have—with the exception of Queen Charlotte Sound—little or no commercial utility. Where vital localities have not been endowed with ideal harbours it has been necessary to improve existing facilities by dredging and by breakwater-construction, &c. In this manner efficient ports, capable of accommodating overseas vessels, have been formed in Lyttelton, Otago, and Bluff harbours. On the west coast of both Islands the strong ocean-drifts and high seas cause shoaling at river-mouths and harbour-entrances, while on the east coast of the South Island similar circumstances prevail, due to the large quantities of shingle brought down by the rivers being spread along the coast by ocean currents. The mountainous nature of the country makes the haulage of goods to and from the better-equipped natural harbours both costly and difficult, and the construction and maintenance of further ports at various points along the coasts of both Islands has been necessary, either by dredging river-mouths or by harbour-construction work.

Mountains.—The mountainous nature of New Zealand is one of its most striking physical characteristics, less than one-quarter of the land surface lying below the 650 ft. contour. In the North Island the higher mountains occupy approximately one-tenth of the surface; but, with the exception of the four volcanic peaks of Egmont (8,260 ft.), Ruapehu (9,175 ft.), Ngauruhoe (7,515 ft.), and Tongariro (6,458 ft.), they do not exceed an altitude of 6,000 ft. Of these four volcanoes only the first-named can be classed as dormant. Ruapehu was particularly active from March, 1945, to the end of that year, being responsible for considerable deposits of volcanic ash over a very wide area, while more recent and spectacular activity was exhibited by Ngauruhoe during the period February to May, 1949. In both eases violent eruptions alternated with quieter periods. Other volcanoes include Mount Tarawera and White Island, each of which has, upon one occasion within historical times, erupted with disastrous consequences. Closely connected with the volcanic system are the multitudinous hot springs and geysers.

The South Island is much more mountainous than the North, but shows fewer manifestations of recent volcanic activity. Along almost the entire length of the Island runs the massive chain known as the Southern Alps, which attains its greatest height in Mount Cook (12,349 ft.), while no fewer than seventeen peaks exceed 10,000 ft.

As might be expected, the higher mountains of the South Island have exerted a greater influence on the economic development of the country than those of the North Island. For many years the Southern Alps were an effective barrier to communication by land between the east and west coasts, while their climatic effects on the Canterbury plains and Otago plateaux determined the types of cultivation undertaken. Moreover, the existence of much elevated open country led to the development of pastoral holdings on a large scale. While the mountains in the North Island are not as high nor as extensive as those of the South Island, in the early days they effectively isolated various portions of the coastal plains and valleys. Their effect on climatic conditions, however, is considerably less, the rainfall being more evenly distributed. Owing to this more even distribution of the rainfall, and to the existence of considerable areas of lower relief, the foothills of the mountain systems were heavily wooded, and so proved a hindrance to agrarian development.

In the 1931 issue of the Year-Book a list was given, not claimed as exhaustive, of 223 named peaks of 7,500 ft. or more in altitude. Below is a list of the peaks restricted to the three largest volcanic cones in the North Island and to mountains of a minimum height of 9,000 ft. in the South Island. The list has been compiled from various sources, and does not purport to be free from omissions.

Mountain or Peak,Height (Feet).
NORTH ISLAND 
Ruapehu9,175
Egmont8,260
Ngauruhoe7,515
SOUTH ISLAND 
Kaikoura Ranges 
Tapuaenuku9,465
Alarm9,400
Southern Alps 
Cook12,349
Tasman11,475
Dampier11,287
Silberhorn10,757
Lendenfeldt10,450
David's Dome10,443
Malte Brun10,421
Torres10,376
Teichelmann10,370
Sefton10,354
Haast10,294
Elie de Beaumont10,200
Douglas Peak10,107
La Perouse10,101
Haidinger10,059
De la Beche10,058
The Minarets10,058
Aspiring9,975
Hamilton9,915
Glacier Peak9,865
Arguilles Rouges9,731
Nazomi9,716
Darwin9,715
Chudleigh9,686
Annan9,667
Lowe9,653
Haeckel9,649
Le Receveur9,562
Goldsmith9,532
Big Mac9,511
Conway Peak9,510
Bristol Top9,508
Walter9,507
Grey9,490
Green9,307
Hutton9,297
D'Archiae9,279
Bell9,276
Hochstetter Dome9,258
Earnslaw9,250
Nathan9,200
Barnicoat9,183
Sibbald9,181
Arrowsmith9,171
Spencer9,167
The Footstool9,073
Rudolf9,039
The Dwarf9,025
Darran Range 
Tutoko9,691
Madeline9,042

Glaciers.—In keeping with the dimensions of the mountain system, New Zealand possesses, in the South Island, a glacial system of some magnitude. Of the glaciers the largest is the Tasman, which, with others of comparable size, rises in the more elevated area surrounding Mount Cook. Flowing down the eastern slope of the range, the Tasman glacier has a length of 18 miles and a width of 1¼ miles. In common with other glaciers on the eastern slope, of which the more important are the Murchison (11 miles), the Mueller (8 miles), the Godley (8 miles), and the Hooker (7¼ miles), its rate of flow is slow, while its terminal face is at an altitude of somewhat over 2,000 ft. On the western slope of the range, owing to the greater snow precipitation, the glaciers are more numerous and descend to lower levels, while the steeper slope gives them a more rapid rate of flow. The two largest of these are the Fox and the Franz Josef, with lengths of 9¾ miles and 8½ miles respectively, and terminal faces at altitudes of 670 ft. and 690 ft.

As will be realized, these glaciers are an important tourist attraction, and as such have definite economic significance. Moreover, those glaciers on the eastern slopes which feed rivers utilized for irrigation and hydro-electric purposes are valuable in that they help to ensure a steady volume of water throughout the year.

Rivers.—Of the numerous New Zealand rivers few are of sufficient length or volume to be navigable. Moreover, owing to the high relief of the country, they are mostly swift-flowing, while, as mentioned previously, nearly all are obstructed at their mouths by bars. For the purpose of internal communication, therefore, they are of little economic utility, and only in two or three isolated instances have they been thus consistently used. With improved roading conditions, however, their traffic has become negligible even in these cases.

As sources of hydro-electric power, New Zealand rivers are of considerable importance, since their rapid rate of flow and dependable volume of ice-free water make them eminently suitable for this purpose. At the present time the Waikato and the Mangahao in the North Island and the Waitaki and Waipori in the South are used for major hydro-electric schemes and a further major development is now being undertaken on the Clutha. The characteristics just mentioned are also important for purposes of irrigation, but, owing to the country's reliable rainfall, there are few areas other than in Canterbury and Otago where the rivers are so utilized.

In the 1932 Year-Book appears an account of the rivers of New Zealand, but space in this issue is, however, available only for a list of the more important ones, with their approximate lengths.

NORTH ISLAND

Flowing into the. Pacific Ocean 
 Miles.
Piako60
Waihou (or Thames)90
Rangitaiki95
Whakatane60
Waiapu55
Waipaoa50
Wairoa50
Mohaka80
Ngaururoro85
Tukituki65
Flowing into Cook Strait 
Ruamahanga70
Hutt35
Otaki30
Manawatu100
Rangitikei115
Turakina65
Wangaehu85
Wanganui140
Waitotara50
Patea65
Flowing into the Tasman Sea 
Waitara65
Mokau75
Waikato220
Wairoa95
Hokianga40
SOUTH ISLAND 
Flowing into Cook Strait 
 Miles
Aorere45
Takaka45
Motueka75
Wai-iti30
Pelorus40
Wairau105
Awatere70
Flowing into the Pacific Ocean 
Clarence125
Conway30
Waiau-uha110
Hurunui90
Waipara40
Ashley55
Waimakariri93
Selwyn55
Rakaia95
Ashburton67
Rangitata75
Opihi50
Pareora35
Waihao45
Waitaki135
Kakanui40
Shag45
Taieri125
Clutha210
Flowing into Foveaux Strait 
Mataura120
Oreti105
Aparima65
Waiau115
Flowing into the Tasman Sea 
Cleddau and Arthur20
Hollyford50
Cascade40
Arawata45
Haast60
Karangarua30
Cook25
Waiho20
Whataroa35
Wanganui35
Waitaha25
Hokitika40
Arahura35
Taramakau45
Grey75
Buller105
Mokihinui30
Karamea45
Heaphy25

The discovery in 1861 that the beds of numerous rivers in the South Island contained extensive deposits of alluvial gold was of considerable importance in the economic development of the country. Not only did it lead to an increase in population and in wealth, but, through the following of the numerous streams to their sources, it also led to the rapid exploration of large tracts of remote country. The exploitation of these deposits has been carried on with varying degrees of success up to the present time by both manual and mechanical means.

A further factor in connection with the rivers is that, owing to the very successful acclimatization of fresh-water fish, notably trout, many of them now provide exceptionally fine fishing.

Lakes.—In considering New Zealand's numerous lakes, a distinction can be made, especially from the scenic viewpoint, between the lakes of the two Islands. Surrounded by extremely rugged country the larger lakes of the South Island are distinguished by the grandeur of their alpine settings, while those of the North Island, situated on a volcanic plateau, are of interest by reason of the neighbouring thermal activity. Owing to the excellence of their fishing, the North Island lakes possess an added tourist attraction. In both Islands the larger lakes are situated at high altitudes, and their consequent remoteness renders them unsuitable as a means of communication. In their functions as reservoirs the lakes of both Islands are of vital importance for the maintenance of the streams draining them and as a means of flood-prevention. More especially is this the case where hydro-electric schemes are involved. Lakes Waikaremoana and Taupo in the North Island, and Lakes Coleridge, Pukaki. Tekapo, Wanaka, Hawea, and Wakatipu in the South Island, being of particular significance in this respect.

An article on the lakes of New Zealand will be found in the 1932 Year-Book. Some particulars of the more important are given in the following table.

Lake.Length, in Miles.Greatest Breadth, in Miles.Area, in Square Miles.Drainage Area, in Square Miles.Approximate Volume of Discharge, in Cubic Feet per Second.Height above Sea-level, in Feet.Greatest Depth. in Feet.
NORTH ISLAND       
Taupo25172381,2505,0001,211534
Rotorua63215842091584
Rotoiti10¾1426500913230
Tarawera1575 1,032285
Waikaremoana12211287722,015846
Wairarapa104271,250  64
SOUTH ISLAND       
Rotoiti5286 1,997228
Rotoroa78146 1,470 
Brunner5416145 280357
Kaniere5811 422646
Coleridge1131870 1,667680
Tekapo124325805,0002,323620
Pukaki105315156,0001,588 
Ohau103234245,0001,720 
Hawea205485185,7001,062 
Wanaka30475960 922 
Wakatipu5231121,16213,0001,0161,242
Te Anau3361321,32012,660694906
Manapouri12656416 5961,458
Monowai1211251700600 
Hauroko203251951,800611 
Poteriteri17217162 96 
Waihola1⅛3⅓2,200 (Tidal)52
Ellesmere1610107½745 (Tidal)45

GEOLOGY.—An article on the geology of New Zealand prepared by Dr. J. Henderson, M.A., F.R.S.N.Z., former Director of the Geological Survey, is contained in the 1940 and earlier editions of the Year-Book. For more detailed information the reader is referred to the treatises of Professors Park and Marshall, the bulletins of the Geological Survey, and the many papers that have appeared in the “Transactions of the New Zealand Institute” (now the Royal Society of New Zealand).

EARTHQUAKES.—An article on earthquakes in New Zealand appeared in the 1942 and earlier issues of the Year-Book. The information given below has been supplied by Mr. R. C. Hayes, Director of the Seismological Observatory.

Seismicity and Earthquake Distribution.—A comparison between the records of destructive earthquakes in New Zealand and those in other seismic countries shows that the seismicity of New Zealand, on the whole, is surprisingly high. However, this is due to the occurrence of a large number of earthquakes of the semi-destructive type (R.-F. 8) with comparatively few major destructive shocks (R.-F. 9, 10).

During the period 1835–1949, 73 destructive earthquakes are known to have occurred in New Zealand, 53 of which were of the semi-destructive type (not exceeding intensity R.-F. 8). Of the remainder, 14 were of intensity 9, and 6 of intensity 10.

The total number of earthquakes of all intensities, and the maximum intensity, reported felt in New Zealand in each of the years 1922 to 1949 were as follows: —

Year.Number of Earthquakes reported felt.Maximum Intensity of Heaviest Shock.
R.-F. Scale.M.-M.* Scale.

* Modified Mercalli Scale of 1931, which is now used for recording earthquake effects in New Zealand.

19221,18787
19237665–6
19247076–7
19257687
192617387
192710787
19288087
19296781010
193074887
19314321010
193231398 +
193310876–7
193423098+
193515076–7
193612365–6
19371796–76
193813287
193915776–7
194012076–7
194110787
19421989+9
194317687
19449565+
194512776+
194630287
19472338+7+
19481278+8
1949976–76

The abnormally large number of earthquakes reported in the year 1922 was due to the swarm of local shocks in the Taupo region in the latter half of that year. Abnormally large numbers of shocks also occurred in 1929–30, due to aftershocks of the Buller earthquake of 17th June, 1929.

Summary of Seismic Activity in New Zealand in 1948.—Most of the principal earthquakes in 1948 were in the South Island. The largest disturbance occurred on 23rd May in the Hanmer-Waiau region when intensity M.-M. VIII was reached in the strongest shock. Some buildings in the epicentral region suffered structural damage. Minor activity continued at intervals for some months. Other strong shocks occurred on 15th January off the Manawatu coast, on 19th June off the west coast of the South Island, and in July in the Monowai region. The first two of these shocks were; widely felt. There was some concentration of minor activity in the Taupo region early in the year and occasionally in the Wanganui region. On 26th January a slight shock was felt at some localities around the Kaipara Harbour. There were 127 earthquakes reported felt during the year, 81 being in the North Island, 53 in the South island, and 7 in both Islands. The maximum intensities reported were M.-M. VI in the North Island and M.-M. VIII in the South Island.

Summary of Seismic Activity in New Zealand in 1949.—In 1949, the greatest number of felt shocks occurred in February, and one of the strongest shocks during the year occurred on 10th February at a depth of 170 km. off the coast of South Taranaki. The highest intensities in this shock affected the Taihape-Wanganui area. It was perceptible from Tolaga Bay to South Canterbury. Although thy remainder of the year was comparatively quiet, a shock of intensity M.-M. VI occurred in the southern part of the South Island on 27th May; and one of intensity M.-M. V-VI between Murchison and Hanmer on 28th September. A certain amount of activity persisted in the latter region throughout the year. Intensity M.-M. V was experienced at Karamea on 23rd December. On 27th June a shock in the White Island region occurred at a depth of 330 km. This depth is second only to that of a shock in the same region on 27th June, 1942, at a depth of 370 km. Outside the main seismic zone, minor activity occurred in the following regions—Great Barrier Island, Ruawai (Northland), Paeroa, and Raglan. Shocks located in unusual regions occurred on 14th April and 27th May from 100 to 200 miles east of Christchurch, and on 16th September, west of Cape Egmont. In all, 97 shocks were reported felt during the year, 71 in the North Island, 34 in the South Island, and 8 in both Islands. The maximum intensity reported in both Islands was M.-M. VI.

Regional Distribution.— New Zealand earthquake statistics over the past hundred years or so show that certain parts of the country are subject to almost continuous seismic activity with occasional destructive shocks, while other parts are more or less free from seismic disturbances. By combining early earthquake records with the more precise data of recent years it is possible to divide the country roughly into four seismic regions. These regions are classified below, in order of seismicity.

  1. All areas of the North Island east and south of an approximate line from the vicinity of Whakatane in the Bay of Plenty to the vicinity of Hawera in South Taranaki, and all areas of the South Island north of an approximate line from the vicinity of Hokitika on the west coast, through the region of Lake Coleridge, to Banks Peninsula:

  2. South Auckland, western Bay of Plenty, Waikato, and Taranaki (except the southern portion):

  3. Areas of the South Island, south of the boundary of region I:

  4. Areas north of Auckland.

The following table shows the average frequency of earthquakes in each of the four regions defined above.

Region.Average Number of Earthquakes per Year (1921–1940).Average Number of Destructive Shocks per Decade (1835–1940).Relative Seismicity based on Destructive Shocks.
Minor Shocks (R.-F.8).Major Shocks (R.-F. 9, 10).
I97.84.11.711.5
II23.01.1 11
III12.10.1 0.1
IV1.1  00

The boundaries between the seismic regions are not well defined, since one region generally merges more or less imperceptibly into another. Further, seismic frequency is not uniform. This leads to the number of shocks being considerably above the average in some years and below it in others. The normal irregularity is increased by the occasional occurrence of earthquake swarms in certain regions. Probably the most notable swarm in New Zealand was that which occurred in the Taupo region in the latter half of 1922. The number of minor local shocks in this swarm was so great that only the stronger ones, or those affecting the adjacent region, were used in determining the average frequency of region I. Major earthquakes occur chiefly in the eastern and southern parts of region I.

Deaths due to Earthquakes.—During the period 1848–1949 the number of deaths recorded in New Zealand as due directly or indirectly to earthquakes was 284. Of these, 255 were due to the Hawke's Bay earthquake of 3rd February, 1931.

CLIMATE.—A general description of the climate of New Zealand is contained in an article supplied by Dr. M. A. F. Burnett, O.B.E., M.Sc., Ph.D., F.Inst.P., Director of Meteorological Services, which was included in the 1942 and earlier editions of the Year-Book.

The following table, however, suffices to give some information on the chief climatological elements. Average values, based on records for varying periods, are included for a selection of climatological stations. More detailed climatological statistics are published annually in the Meteorological Observations. The assembly of material for this annual publication was suspended during the war, and this has delayed the appearance of recent issues. Current statistics appear monthly in climatological tables included in the New Zealand Gazette.

CLIMATOLOGICAL AVERAGES (OVER A PERIOD OF YEARS)

Station.Altitude of Station.Average Annual Rainfall.Average Number of Rain-days.Average Bright Sunshine.Temperatures in Shade, Degrees Fahrenheit;
Mean Daily Maximum.Mean Daily Minimum.
Jan.July.Year.Jan.July.Year.

* Normals relate to present site.

† Temperature records for less than ten years.

 Ft.In. Hrs.      
Te Paki, Te Hapua20054.741642,16372.358.665.657.245.451.9
Auckland16049.141832,05872.956.464.860.045.953.1
Tauranga1052.901512,37174.557.166.154.839.747.4
Hamilton East13146.681592,03875.356.366.152.337.345.1
Rotorua93155.421452,05474.954.564.853.537.045.3
Gisborne1238.311472,27177.354.166.054.341.147.6
Onepoto, Lake Waikaremoana2,11076.25184 67.546.757.652.437.245.0
New Plymouth16060.601862,23569.554.962.555.542.749.4
Napier531.481142,41773.954.664.757.239.048.5
Taihape2,15736.91181 68.247.057.850.235.943.1
Wanganui7235.971562,19471.453.462.956.340.248.9
Plant Research Bureau, Palmerston North11038.001541,81870.552.562.054.638.647.0
Masterton35037.691422,09273.9*52.6*63.6*50.9*35.9*43.2*
Wellington41544.861662,04067.751.159.754.641.548.2
Nelson2438.221192,48771.254.063.054.536.746.0
Blenheim6024.931112,32075.653.164.953.432.943.9
Hanmer Springs1,22545.841341,96071.847.760.948.028.739.1
Hokitika12114.641881,89566.352.959.653.136.545.4
Lake Coleridge1,19532.49113 70.848.061.149.229.940.8
Christchurch2226.101261,96870.249.860.852.734.744.0
Timaru5623.161151,91169.949.260.651.633.342.8
Milford Sound20252.76195 64.248.556.850.034.342.4
Queenstown1,10030.781011,99069.645.158.749.030.540.9
Alexandra52013.511002,14572.444.060.650.827.840.3
Dunedin531.321611,70267.6*48.3*59.1*50.9*36.4*44.2*
Invercargill3244.741991,63266.348.758.348.533.841.8

Brief Review of 1948.—The annual rainfall was below the average in the Wellington and Hawke's Bay districts and in parts of Northland; also over the South Island with the exception of some districts in Nelson and Marlborough and near the eastern slopes of the Southern Alps. The deficiency was greatest in North Otago and North Canterbury. A few local areas in the North Island had a surplus of 40 per cent. These were located in the Gisborne and Bay of Plenty districts and north of New Plymouth. Annual temperatures were above normal. The departure did not amount to 1° F. in the South Island but was greater than 1° F. over most of the North Inland. A positive departure of almost 2° F. in the Rangitikei district was exceptional. For the most part the duration of bright sunshine was above normal, in particular by more than 200 hours in South Canterbury. Less favoured were western districts between Auckland and Wanganui and Nelson. Napier and Gore had a deficit of some 60 hours.

Seasonal Notes.—Warm, sunny weather prevailed during the first three months of 1948. Following two months of dry weather at the end of 1947, the cumulative effect of low rainfall for five successive months brought about a drought in several parts of the country. The areas chiefly affected were Rangitikei, Manawatu, and North Wairarapa. In the last-named area the rainfall for the period November, 1947, to March, 1918, was the lowest of any five consecutive months for over fifty years. Useful rains in the early part of April provided some relief, and in May rain came in abundance, totals being generally two or three times the average. Towards the middle of the month a storm caused severe flooding and loss of stock in the Gisborne district. Temperatures were generally above average throughout the winter season, and pastures in the drought-affected areas recovered well. July was the mildest of any since 1917, though it was also dull and wet. In August there were many fine, sunny days while in parts of Central Otago there was no rain at all. By the end of the season stock was in excellent condition, the absence of snow or stormy winds being particularly welcome at lambing time. September, October, and November were fairly typical of a normal spring season. There was little settled weather, changeable westerly conditions predominating throughout. A few very wet days occurred in and west of the Southern Alps, and, Subsequently, rivers in Otago and Southland rose temporarily to flood levels. Growth of crops and pastures was good, with dairy production well above average. Very changeable conditions persisted during the first half of December, but a spell of hot, dry weather arrived over the Christmas period. The month as a whole was warmer and drier than usual, especially in eastern districts.

Summary of Meteorological Observations.—The observations from which the following summary was compiled for the year 1948 were taken at 09.30 hrs. New Zealand standard time—i.e., 21.30 hrs. Greenwich Mean Time.

Station.Temperatures in Shade, Degrees Fahrenheit.Hours of Bright Sunshine.Rainfall.
Mean Daily Maximum.Mean Daily Minimum.Approx. Mean Temperature.Extremes for 1948.Extremes.Total Fall (Inches)Number of Rain-days.
Maximum and Month.Minimum and Month.Absolute Max.Absolute Min.
Te Paki, Te Hapua67.452.860.178.5 Feb.31.3 Jun.80.027.02,256.251.57190
Auckland65.654.159.981.0 Dec.38.0 Aug.90.433.22,016.053.41187
Tauranga66.448.657.583.7 Feb.31.4 Jun.90.722.52,478.260.00169
Hamilton East65.445.155.386.1 Dec.23.7 Jun.94.414.22,082.548.89184
Rotorua 45.4 88.0 Dec.27.0 Aug.98.021.32,099.462.71152
Gisborne66.948.357.690.4 Jan.31.0 Aug.95.826.02,350.548.25157
Onepoto, Lake Waikaremoana59.244.852.082.2 Dec.31.6 Sept.88.027.1 86.42188
New Plymouth62.650.656.679.5 Jan.39.0 Jun.89.027.02,069.873.14182
Napier66.149.657.892.2 Jan.31.0 Aug.96.527.52,361.425.72118
Taihape59.844.051.982.0 Dec.27.9 Aug.87.820.4 35.56174
Wanganui63.749.65.6685.0 Jan.32.0 Jun.88.028.82,162.136.13169
Plant Research Bureau, Palmerston North63.647.755.785.0 Jan.30.0 Aug.87.021.21,962.737.51188
Masterton64.244.554.391.9 Dec.26.0 Aug.95.420.02,134.635.86158
Wellington61.048.854.984.3 Dec.34.2 Aug.88.028.62,072.541.56162
Nelson63.346.755.080.8 Feb.31.8 Aug.92.025.02,446.938.06122
Blenheim64.344.954.692.1 Dec.28.6 Jun.94.616.12,577.029.65114
Hanmer Springs61.839.250.591.6 Dec.19.0 Aug.97.08.22,026.538.63132
Hokitika59.444.151.775.0 Jan.29.2 Jul.84.525.01,955.0105.24192
Lake Coleridge61.040.650.889.1 Dec.20.8 Jun.92.010.0 33.45126
Christchurch61.844.753.291.0 Jan.26.8 Jun.95.719.32,054.619.34129
Timaru62.343.252.791.2 Jan.25.0 Jul.99.019.82,108.618.6796
Milford Sound57.542.950.276.6 Feb.28.3 Aug.79.323.1 247.36190
Queenstown60.041.250.693.4 Jan.26.0 Aug.93.419.22,113.538.43131
Alexandra62.339.951.194.4 Jan.20.0 Aug.94.411.02,185.210.9695
Dunedin59.044.851.985.0 Jan.28.0 Jun.94.023.01,798.031.63177
Invercargill58.841.550.190.0 Jan.23.0 Aug.90.019.01,741.641.44210

For 1948 the mean sea-level pressure values in millibars at 09.30 hrs., New Zealand standard time, were: Auckland, 1016.1; Wellington, 1013.5; Nelson, 1013.5; Hokitika, 1013.8; Christchurch, 1011.6; and Dunedin, 1011.0.

Brief Review of 1949.—Over the greater part of New Zealand the annual rainfall did not differ much from the average, the general tendency being for a alight excess in central and western districts and a slight deficiency elsewhere. The greatest deficiency was in the central and northern parts of the Canterbury Plains and inland from Gisborne where rainfall was only about 75 per cent. of the average. A 25 per cent. excess was recorded in eastern Coromandel and near the main ranges in Otago and South Canterbury. Moan temperatures were above normal in the North Island and the eastern half of the South Island. Elsewhere they were near or slightly below normal. There was more sunshine than normal in the provincial districts of Wellington. Marlborough, Nelson, and Canterbury and in the Gisborne and Buller areas, the surplus exceeding 200 hours in the central parts of Canterbury. Over the remainder of the country the totals were mostly 50 to 100 hours below the average.

Seasonal Notes.—There was little settled weather in January, conditions generally being cloudy and cool. Frequent rain and lack of sunshine, especially east of the main ranges, delayed the ripening of fruit and cereal crops. February was a warm, dry month apart from heavy rains on the West Coast. In Canterbury it was exceptionally warm, especially during the first week. The March rainfall was over three times the average in the Otago Lakes district where some flood damage occurred on the 19th. Elsewhere conditions were about normal for early autumn. The following month, however, was rather unseasonable, it being the coldest April since 1940. In Canterbury the ground became too hard for cultivation, and autum sowings of grain were delayed. Southland experienced a very difficult harvesting season. In May the mean barometric pressure reached a record high level. The weather was generally settled with the exception of two very wet periods affecting districts exposed to north-east winds. Rain fell frequently during the next two months, though the total falls were mostly below average. June was a mild month and was followed by the mildest July on record. In some places trees and shrubs began to flower a month ahead of their usual date. Although there was no really settled weather in August, conditions on the whole were favourable. At the beginning of the second week some new lambs were lost in northern and eastern districts during a severe storm from the north. Similar losses occurred in the south during a snowstorm towards the end of September. Severe frosts about this time also damaged stone-fruit trees and early vegetables. On the whole, September was dry and very sunny. October was exceptionally mild, certainly the mildest October since 1915. Rainfall was high in Westland where several stations recorded over 40 in. for the month, Waiho having as much as 19.30 in. in one day; but for the most part rainfall was low and sunshine high. November was also very sunny with less than the usual amount of rain. From Hawke's Bay to Canterbury the low seasonal rainfall delayed spring sowings and retarded growth. Conditions in the main dairying districts, however were exceptionally favourable. Prospects for the stone-fruit crop received a further set-back when a hailstorm on the 6th November severely damaged orchards near Hastings. Frost also did considerable damage in Central Otago. December's weather was cloudy, unsettled, and rather cool. The rain which fell in Canterbury during the first week was particularly welcome after a very dry spring. Lambs fattened well and dairy production rose to a record level.

Summary of Meteorological Observations.— The observations from which the following summary was compiled for the year 1949 were taken at 09.30 hrs., New Zealand standard time—i.e, 21.30 hrs. Greenwich Mean Time.

Station.Temperatures in Shade, Decrees Fahrenheit.Hours of Bright Sunshine.Rainfall.
Mean Daily Maximum.Mean Daily Minimum.Approx. Mean Temperature.Extremes for 1949.Extremes.Total Fall (Inches)Number of Rain-days.
Maximum and Month.Minimum and MonthAbsolute Max.Absolute Min.
Te Paki, Te Hapua66.652.159.378.8 Dec.33.8 May80.027.02,080.849.21193
Auckland65.153.559.380.5 Feb.36.0 Jul.90.433.21,956.540.77182
Tauranga65.948.357.182.1 Jan.29.8 Jul.90.722.52,339.245.69152
Hamilton East64.844.754.781.2 Feb.23.8 Jul.94.414.22,010.240.19187
Rotorua68.644.654.184.0 Jan.26.0 Sept.98.021.32,008.352.78155
Gisborne66.447.757.086.0 Feb.30.7 Jul.95.826.02,300.534.85134
Onepoto, Lake Waikaremoana58.844.851.884.2 Jan.30.0 Sept.88.027.1 69.40183
New Plymouth61.949.955.976.0 Jan.31.9 Sept.89.027.02,132.963.79187
Napier65.949.157.587.0 Feb30.1 Jun.96.527.52,355.731.55125
Taihape58.443.250.878.0 Jan.25.7 Sept.87.820.4 38.26194
Wanganui63.049.256.182.8 Feb.33.0 Sept.88.028.82,153.039.36172
Plant Research Bureau, Palmerston North62.846.854.883.5 Feb.29.0 Aug.87.021.21,929.741.43187
Masterton63.843.753.890.0 Feb.25.5 Sept.95.420.02,161.735.15146
Wellington59.948.254.176.8 Feb.34.6 Sept.88.028.62,117.743.21158
Nelson63.046.154.581.7 Jan.30.8 Jun.92.025.02,549.241.13121
Blenheim64.244.554.489.1 Jan.22.8 Jun.94.616.12,616.923.58100
Hanmer Springs61.038.449.786.8 Jan.18.5 Jun.97.08.22,092.744.84123
Hokitika58.343.651.074.3 Jan.28.0 Jun.84.525.01,871.4120.04211
Lake Coleridge60.640.350.588.0 Feb.22.5 Jun.92.010.0 30.96122
Christ church62.143.652.893.7 Feb.25.1 Aug.95.719.32,199.720.12124
Timaru62.041.851.993.6 Feb.24.8 Aug.99.019.82,051.523.2994
Milford Sound59.942.349.673.2 Feb.29.4 Aug.79.323.1 258.17204
Queenstown58.610.749.684.0 Feb.28.2 Aug.93.419.21,971.743.94153
Alexandra61.440.150.888.0 Feb.21.7 May94.411.02,051.315.94112
Dunedin59.044.251.692.3 Feb.30.0 Aug.94.023.01,796.131.84166
Invercargill58.341.049.788.0 Feb.21.0 May90.019.01,586.447.52222

For 1949 the mean sea-level pressure values in millibars at 09.30 hrs., New Zealand standard time, were: Auckland, 1016.9; Wellington, 1014.1; Nelson, 1014.1; Hokitika, 1014.4; Christchurch, 1011.9; and Dunedin, 1011.3.

PLANTS OF NEW ZEALAND.—Those desiring information on the flora and plant covering of New Zealand are referred to the article by Dr. W. R. B. Oliver, D.Sc., F.R.S.N.Z., which appeared in the 1940 and previous issues of the Year-Book, while a brief reference to the geographical distribution of the forest trees is made in the section of this Year-Book dealing with Forestry (Section 19). For more detailed information the following works may also be consulted: “Plants of New Zealand,” by R. M. Laing and E. W. Blackwell, ed. 4, 1940; “Manual of the New Zealand Flora,” by T. F. Cheeseman, ed. 2, 1925; “The Trees of New Zealand,” by L. Cockayne and E. Phillips-Turner, 1928; “The Forest Flora of New Zealand,” by T. Kirk, 1889; “New Zealand Trees and Shrubs and how to Identify Them,” by H. H. Allan, 1928; “New Zealand Ferns,” by H. B. Dobbie, ed. 3, 1931; “New Zealand Plants and their Story,” by L. Cockayne, ed. 3, 1927; “The Vegetation of New Zealand,” by L. Cockayne, ed. 2, 1928; “The Cultivation of New Zealand Plants,” by L. Cockayne, 1923; “The New Zealand Nature Book,” Vol. 2, by W. Martin, ed., 2, 1944; “The Botanical Names of the Flora of New Zealand,” by A. Wall and H. H. Allan, 1945; and numerous articles published in the Transactions of the Royal Society of New Zealand.

FAUNA.—A brief article on the fauna of New Zealand, originally prepared by the late Mr, James Drummond, F.L.S., F.Z.S., and revised by him in 1935, is contained in the 1940 and earlier editions of the Year-Book.

Chapter 2. SECTION 2—CONSTITUTION

Table of Contents

EXECUTIVE COUNCIL.—The powers, duties, and responsibilities of the Governor General and the Executive Council under the present system of responsible government are set out in Royal Letters Patent and Instructions thereunder of 11th May, 1917, published in the New Zealand Gazette of 24th April, 1919 (p. 1213). In the execution of the powers and authorities vested in him the Governor-General must be guided by the advice of the Executive Council; but, if in any case he sees sufficient cause to dissent from the opinion of the Council, he may act in the exercise of his powers and authorities in opposition to the opinion of the Council, reporting the matter to His Majesty without delay, with the reasons for his so acting.

In any such case any member of the Executive Council may require that there be recorded in the minutes of the Council the grounds of any advice or opinion that he may give upon the question.

At present (November, 1950) the Executive Council consists of seventeen members in addition to the Governor-General. Two members, exclusive of His Excellency or the presiding member, constitute a quorum.

Under the Civil List Act, 1950, which consolidates and amends the Civil List Act, 1920, and its amendments, His Excellency the Governor-General receives an honorarium of £5,000 per annum, an allowance of £5,000 per annum for the salaries and expenses of his establishment (exclusive of the Official Secretary), plus all expenditure incurred in respect of the transport to and from New Zealand and the travelling within or outside New Zealand of the Governor-General and his family and staff.

The Civil List Act, 1920, fixed the number of paid Ministers (exclusive of the Prime Minister) at ten, but an amendment in 1936 increased the number to eleven, with a proviso that the total amount paid in any one year was nor, to exceed the aggregate amount specified in the principal Act. Part V of the Finance Act (No. 3), 1944, further increased the number of Ministers of the Grown (other than the Prime Minister) who may be paid to twelve and the limit was removed altogether by the 1950 Act. The 1944 amendment also abolished the provision regarding the aggregate payment. The Prime Minister's salary is now at the rate of £1,800 per annum and that of each Minister holding a portfolio £1,170 per annum. Ministers without portfolio receive £1,000 per annum while all Ministers who do not occupy a Ministerial residence receive an allowance in lieu thereof at the rate of £300 per annum.

The Civil List Amendment Act, 1936, made provision for the appointment of Parliamentary Under-Secretaries, an innovation in executive control in New Zealand. The rate of salary attachable to such a position is now £900, plus house allowance of £300 per annum. At the present time (November, 1950) three such appointments are current.

LEGISLATIVE COUNCIL.—The Imperial Act under which the earliest appointments were made to the Legislative Council under a system of responsible government provided that the first appointees should be not less than ten in number. The number actually summoned for the first session (held at Auckland from 24th May, 1854) was sixteen, of whom only fourteen attended. The number increased irregularly for thirty years. In 1885 and 1886 it stood at fifty-three, but did not again reach that number until appointments made in 1950 brought the total strength to fifty-three at the end of October, 1950.

An Act of the Imperial Parliament in 1868 provided that future appointments of Councillors should be made by the Governor (not by the Sovereign). Until 1891 members were appointed for life, but since that year appointments were made for seven years only, members, however, being eligible for reappointment. Prior to 1891 the Speaker was appointed by the Governor, but since that year the Council elected its own Speaker, who held office for five years. The Chairman of Committees was formerly elected every session, but in 1928 the standing orders were amended to provide for a three years' term of office. Speaker and Chairman were both eligible for re-election.

Provision for an elective Legislative Council was contained in the Legislative Council Act, 1914, which could be brought into operation at a date to be specified by Proclamation.

The qualifications for membership of the Legislative Council were the same as for the House of Representatives (see post), with the proviso that a person could not at the same time be a member of both Houses. Prior to 1941 women were not eligible for appointment to the Legislative Council, but this restriction was removed by section 40 of the Statutes Amendment Act, 1941. There were no women appointees until February, 1946, when two were included in a list of four new members and a further three were included in the 1950 appointments.

Before the year 1892 the honorarium of Councillors was understood to be for the session, not for the year, and formed the subject of a special vote every session, the amount varying in different sessions. By the Payment of Members Act, 1892, the honorarium was made annual, not sessional, and was fixed at £150 a year. There were several alterations after that date and the rate, prior to the passing of the Finance Act (No. 3), 1944, had for several years been £315 per annum. The Act in question raised the honorarium to £375. This Act also increased the honorarium of the Speaker from £720 to £800, and that of the Chairman of Committees from £450 to £500 per annum. The Speaker also received free sessional quarters. Besides the honorarium, members received certain privileges in respect of railway and other forms of travel, &c.

Subject to certain exemptions, members not attending the Council were liable to be fined.

The Legislative Council Abolition Act, 1950, provides for the abolition of the Legislative Council as from the 1st January, 1951. It also amends section 52 of the New Zealand Constitution Act, 1852, by deleting the words “a Legislative Council,” and thus the General Assembly from the 1st January, 1951, will consist of the Governor-General and the House of Representatives. Existing statutes relating to the Legislative Council were also repealed by the 1950 Act.

All statutory references to the Legislative Council, to the Clerk of the Legislative Council, or to the Clerk of Parliaments are to be read as references to the House of Representatives or to the Clerk of the House of Representatives respectively.

The 1950 Act also expressly declared the law to be that no member or officer of the Legislative Council at the date of its abolition will have any legal right to compensation for loss of office.

HOUSE OF REPRESENTATIVES.—The number of members constituting the House of Representatives is eighty—seventy-six Europeans and four Maoris. They are designated “Members of Parliament.” The number was originally fixed by the Constitution Act as not more than forty-two and not less than twenty-four, and the first Parliament called together in 1854 consisted of forty members. Legislation passed in 1858 fixed the number of European members at forty-one; in 1860, at fifty-three; in 1862, at fifty-seven; in 1865, at seventy; in 1867, at seventy-two; in 1870, at seventy-four; in 1875, at eighty-four; in 1881, at ninety-one; in 1887, at seventy; and in 1900, at seventy-six. By the Maori Representation Act, 1867, which is still in force, as embodied in the Electoral Act, 1927, four Maori members were added, three for the North Island and one for the South.

The basis upon which New Zealand is divided anew into seventy-six European electorates after each population census was substantially altered by the Electoral Amendment Acts, 1945 and 1950. The 1945 amendment abolished the former country quota which was an addition of 28 per cent. made to the rural populations, so that the number of rural electorates, in proportion to their population, was higher than urban electorates. In addition it changed the basis on which the electorates were allocated from the distribution of the total population to that of the “adult” population. The definition of the “adult” population, according to the Act, excluded Maoris, persons under twenty-one years of age and persons detained in mental institutions or prisons. Persons detained as military defaulters in detention camps were also excluded. Provision was made for an allowance by way of addition or subtraction of adult population not exceeding five hundred where districts containing the exact quota could not be formed consistently with considerations of topography, communications, community of interest, and (except in making the first division under the 1945 Act) existing boundaries of electoral districts.

The Electoral Amendment Act, 1950, however, restored the basis of allocation of electorates according to the distribution of the total population. In addition to the existing exclusion of persons detained in mental hospitals and prisons, no account is taken, in making the division into electorates, of persons who spent the night of the census on board ship, as guests in licensed hotels, in military, &c., camps, or as patients in public hospitals. The allowance for adjustment of the quota has been amended to become a figure not exceeding 7½ per cent. of the quota.

The 1950 amendment also provided that all general elections and by-elections shall be held on a Saturday and for both European and Maori elections to be held on the same day.

Quinquennial Parliaments, instituted under the Constitution Act, were abolished by the Triennial Parliaments Act, 1879, which fixed the term at three years. General elections have been hold at three-yearly intervals since 1881, with a few exceptions. The term of the nineteenth Parliament was during the 1914–18 War extended to five years by special legislation, and that of the twenty-fourth (1931–35) and subsequent Parliaments to four years under the Electoral Amendment Act, 1934. By the Electoral Amendment Act, 1937, the three-year term was restored, but on account of war conditions the term of the twenty-sixth Parliament was extended to four years by the Prolongation of Parliament Act, 1941. The Prolongation of Parliament Act, 1942, extended the term still further to one year from the termination of the war, but with a proviso for a motion to be moved in the House of Representatives each year after the year 1942 either approving the continuation of the House or fixing an earlier date for its expiry. During the 1943 session a motion in favour of dissolution was carried, and Parliament was dissolved on 30th August, 1943.

Under the Electoral Act, 1927, every registered elector of either sex, but no other person, is qualified to be a parliamentary candidate. It is provided, however, that a person shall not be so elected who is disqualified as an elector under any of the provisions of the Act (see under “Franchise” post); or is an undischarged bankrupt; or is a contractor to the public service of New Zealand to whom any public money above the sum of £50 is payable, directly or indirectly (but not as a member of a registered company or incorporated body), in any one financial year. Though women's suffrage has been operative since 1893, women were not eligible as parliamentary candidates until the passing of the Women's Parliamentary Rights Act, 1919, the provisions of which are now embodied in the Electoral Act, 1927. Under the Electoral Act public servants were prohibited from being elected, but this prohibition was removed by the Political Disabilities Removal Act, 1936, which provided that if elected they immediately cease to be public servants.

The honorarium paid to members of the House of Representatives is £500 per annum. They are also paid an allowance at the rate of £250 per annum for expenses incurred in connection with parliamentary duties. Payment to members is subject to certain deductions for absence not due to sickness or other unavoidable cause. In addition to the honorarium, members are entitled to certain privileges in respect of railway and other forms of travel, &c.

Part V of the Superannuation Act, 1947, introduced a contributory superannuation scheme for members of the House of Representatives, which provided a minimum retiring-allowance of £250 per annum for a member with nine years' service, the allowance increasing by £25 per annum for every year's service in excess of that period until a maximum allowance of £400 per annum is reached after fifteen years' service.

A member must be fifty years of age before he qualifies, on ceasing to be a member, to receive the allowance. The annual deduction, which is compulsory, is £50 per annum, but a member may, if he so desires, receive a refund of his contributions upon ceasing to be a member.

In the case of a male member dying and leaving a widow surviving, she becomes entitled during her widowhood to receive an annuity of two-thirds of the retiring-allowance to which her husband was entitled at the time of his death.

The election of a Speaker is the first business of a new House after the members have been sworn. A Chairman of Committees is elected as soon afterwards as is convenient. Both Speaker and Chairman of Committees hold office until a dissolution, and receive payment until the first meeting of a new Parliament. The Speaker's remuneration is £1,000 per annum, in addition to which he receives a sessional allowance of £200 and free sessional quarters. The honorarium of the Chairman of Committees is £750, and an allowance of £160 per annum to cover expenses incurred in connection with his parliamentary and official duties is also paid.

The Leader of the Opposition is paid an allowance of £200 per annum in addition to his salary and allowance as a member of Parliament.

Twenty members, inclusive of the Speaker, constitute a quorum.

FRANCHISE.—Since the abolition of plural voting in 1889 and the introduction of women's suffrage in 1893 every person twenty-one years of age or over has had the right to exercise a vote in the election of members for the House of Representatives. To be registered as an elector a person must have resided for one year in New Zealand, and for three months in the electoral district for which he claims to vote. A system of compulsory registration of electors was introduced at the end of 1924, but for Maori electors a Proclamation was necessary before registration became operative. The Electoral Amendment Act, 1948, however, provided for the preparation of rolls for Maori electoral districts, which, subject to and after notification in the Gazette that these rolls have been formed, shall be for all purposes the electoral rolls of the districts concerned.

There are, of course, slight exceptions to the foregoing, for, if a person is classified as one of the following, he or she is not entitled to register as an elector or to vote:—

  • An alien:

  • A mentally defective person:

  • A person convicted of an offence punishable by death or by imprisonment for one year or upwards within any part of His Majesty's dominions, or convicted in New Zealand as a public defaulter, or under the Police Offences Act, 1927, as an idle and disorderly person or as a rogue and vagabond, unless such offender has received a free pardon, or has undergone the sentence or punishment to which he was adjudged for such offence.

The Electoral Emergency Regulations 1943 prescribed the following additional classes of persons who were not entitled to be registered as electors or to vote:—

  • A person who was committed to military defaulters' detention and had not been discharged therefrom: A person who was taken into custody under the Aliens Emergency Regulations 1940 and had not been released therefrom. Maoris are qualified to vote only at elections of the four members representing the Maori race. A Maori half-caste is entitled to be registered either as an elector of a Maori or a European electoral district, while special provisions govern any changeover of registration.

  • By the Electoral Amendment Act, 1937, which made provision for a secret ballot in Maori elections, Maori electors were granted the same privileges, in the exercise of their vote, as European electors.

For the system of local-government administration a modified form of franchise exists, a ratepaying qualification being necessary for the exercising of votes on financial issues. Further reference to this aspect of franchise will be found in Section 27 of this Year-Book.

Chapter 3. SECTION 3—POPULATION

Table of Contents

POPULATION censuses were taken as for the night of Tuesday, 25th September, 1945, in New Zealand and in all its island territories. The Administration of the Trust Territory of Western Samoa conducted the census for its own territory and also for Tokelau Islands; otherwise, the work was carried out by, or on behalf of, the Census and Statistics Department.

The minor islands (see page 2) other than the Kermadec Islands and Campbell Island were uninhabited at the date of the census, as was also the Ross Dependency, situated in Antarctic regions.

The 1945 census population of New Zealand proper was 1,702,298, inclusive of 98,744 Maoris. These figures do not take into account 45,381 members of the New Zealand Armed Forces overseas at the census date; 44,081 of these were Europeans, the remaining 1,300 being Maoris. At the same date there were 9 people on Campbell Island and 23 in the Kermadec Islands. The population of Cook Islands and Niue Island was 18,341, the latter island contributing 4,253 to this total. Tokelau Islands recorded a census total of 1,388, while 68,197 persons were enumerated in the Trust Territory of Western Samoa. If members of the Armed Forces overseas are excluded, the grand total of population in New Zealand and in all its island territories was 1,790,256 at the census date.

Further 1945 census figures will be found later in this Section, or in other portions of the volume as listed on page 41, but for details it will be necessary to refer to the census volumes published separately. The summary below gives figures more recent than those of the census.

Date.Males.Females.Totals.

* Includes the population, at the 1st April, 1950, of the inhabited minor islands, i.e., Kermadec Islands, 16 males; and Campbell Island, 5 males.

† Not available.

New Zealand—    
(a) Exclusive of Island Territories—    
    Europeans1st April, 1950902,766895,3201,798,086
    Maoris 59,71756,317116,034
    Totals, New Zealand (excluding Island territories)1st April, 1950962,483951,6371,914,120*
(b) Island Territories—    
    Tokelau Islands1st April, 1950962,4831,460
    Cook Islands and Niue Island1st April, 1950962,4839,8409,66219,502
      Totals, New Zealand (including Island territories)   1,935,082
Trust Territory of Western Samoa1st April, 1950962,48340,24537,91078,155

METHOD OF COMPILATION.—In common with almost all countries, the chief instrument in compiling population data in New Zealand is the census, which in this country in normal times is taken quinquennially. The minutiae of the distribution of population, together with analyses of various population characteristics, compiled from census data will be found in the official publications compiled after each census.

The basis adopted for the census, and virtually throughout population statistics in New Zealand, is that of the population present, which may be defined as the population present at the place of enumeration at the time of the enumeration.

Intercensal figures of total population are based on the customary equation:—Population = Population (census) + Births and immigration — Deaths and emigration.

The first interruption in the sequence of New Zealand censuses was caused by the abandonment, for reasons of financial stringency resulting from the world-wide economic depression, of the census proclaimed for 21st April, 1931. Owing to the outbreak of war and its subsequent effect on population no census was taken in 1941, the necessary legislative sanction being provided by section 36 of the Finance Act, 1940. The section authorized the census due in 1941 to be taken in any year not earlier than 1941 nor later than 1943. As this census was taken on 25th September, 1945, authority was granted for the abandonment of the census which was due in 1946. The next census will be taken in April, 1951.

The comparative shortness of the interval between the census enumerations in normal times, combined with New Zealand's insular position and the completeness of her registration system, prevents serious intercensal errors in statements of the total population of New Zealand.

The distance of New Zealand from other countries, combined with the fact that overseas migration centres in a few ports or air-ports, facilitates the compilation of accurate statistics of external migration.

Population figures since 1939 are exclusive of New Zealand soldiers, &c., overseas, and of members of forces of overseas countries who were in New Zealand.

Residents of the Cook Islands, Nine, Western Samoa, and the Tokelau Islands are not included in the population statistics quoted throughout this Section, except in the first table on page 18. Separate statistics of the Maori population are given where they are available.

INCREASE OF POPULATION.—The outstanding note of the history of population movement in New Zealand is that of unbroken growth. That it has not been invariably regular is well attested by the accompanying table, and by the long-term comparison shown in a later section of this Year-Book entitled “Statistical Summary.”

Date of Census.Population (Excluding Maoris).Maoris. 
Numbers.Numerical Increase.Percentage Increase.Average Annual Percentage Increase.

* See letterpress.

† An enumeration taken between September, 1857, and September, 1858.

‡ Inclusive of members of Armed Forces overseas at census date.

December, 185126,707    
December, 185859,41332,706122.4612.1456,049
December, 1861*97,90438,49164.7918.26 
December, 1864171,00973,10574.6720.74 
December, 1867217,43646,42727.158.20 
February, 1871254,92837,49217.245.11 
March, 1874297,65442,72616.765.2947,330
March, 1878412,465114,81138.578.4945,542
April, 1881487,88975,42418.295.6046,141
March, 1886576,52488,63518.173.4143,927
April, 1891624,45547,9318.311.6044,177
April, 1896701,09476,63912.272.3342,113
March, 1901770,30469,2109.871.9145,549
April, 1906885,995115,69115.022.7950,309
April, 19111,005,585119,59013.502.6052,723
October, 19161,096,22890,6439.011.5752,997
April, 19211,214,677118,44910.812.3156,987
April, 19261,344,469129,79210.692.0563,670
March, 19361,491,484147,01510.931.0532,326
September, 19451,603,554112,0707.510.773,744
September, 1945 1,647,635156,15110.471.05100,044

Commencing with the 1926 census all half-caste European-Maoris were included with the Maori population in lieu of the previous practice of treating as Europeans such half-castes as were living in European fashion, and as Maoris those half-castes who were living in Maori fashion. The figures in the preceding table have been corrected from 1861 onwards, to accord with the present practice. Lack of data prevents adjustment for years prior to 1861. The increase in the European population from 1858 to 1861 is therefore very slightly understated.

The European population now looks in retrospect down a vista of a hundred and fifty years. At the opening of the nineteenth century there existed a more or less fluctuating population of perhaps one hundred; by 1839 it had swelled to a total of about a thousand whalers, sealers, traders, missionaries, adventurers, and settlers. Activities of the colonizing companies and societies in the “forties” brought rapid changes and swiftly rising numbers, to be enhanced in the “sixties” by the gold rushes of the period.

The most significant period is possibly that of the “seventies,” marked by a vigorous developmental policy of public works and assisted immigration. The record year 1874, which saw a rise in population of 46,000 (including 32,000 assisted immigrants), was, and still is, the high-water mark of population gains. Both 1874 and 1875 showed a ratio of growth far in advance of any level subsequently attained.

In the late “eighties” and early “nineties” came economic depression and, consequently, comparative stagnation in population. In the three years 1888, 1890, and 1891, emigrants exceeded immigrants, these being the only such occasions in the history of the country, until the depression years following 1930, when departures exceeded arrivals in the five years 1931–35. A small decrease was also recorded in 1943.

Up to the “seventies” New Zealand was dependent on migration for the greater portion of her increase of population, but since then natural increase—i.e., excess of births over deaths—has been the principal factor.

A table is appended showing for each five-yearly period from 1861 the excess of births over deaths and of immigration over emigration. Maoris are not included, nor, prior to 1921, are crews of vessels. Figures for years later than 1920 have not been adjusted consequent upon the censuses. While there thus exist discrepancies with total population increases given elsewhere, such discrepancies do not invalidate the use of the table.

Period.Excess of Births over Deaths.Excess of Arrivals over Departures.Total Increase.
Males.Females.Both Sexes.Males.Females.Both Sexes.Males.Females.Both Sexes.

* Decrease.

† Members of Armed Forces, &c., are not included in migration figures.

1861–657,6258,98516,61063,28529,88493,16970,91038,869109,779
1866–7015,66317,77933,44211,1679,36920,53626,83027,14853,978
1871–7519,41021,12940,53946,50135,44581,94665,91156,574122,485
1876–8030,14432,80762,95131,87022,91754,78762,01455,724117,738
1881–8532,36235,04667,40815,95813,00128,95948,32048,04796,367
1886–9030,78133,54464,325−4,911*−3,791*−8,702*25,87929,75355,623
1891–9527,25530,63057,8859,9175,40315,32037,17236,03373,205
1896–190028,09731,43759,5347,3203,31810,63835,41734,75570,172
1901–0532,51536,22368,73831,22314,22315,41663,73850,446114,184
1906–1038,68143,06781,74825,45415,51240,96664,13558,579122,714
1911–1542,32346,68289,00517,65617,90535,56159,97964,587124,566
1916–2035,24841,35976,6076,9797,87514,86442,22749,23491,161
1921–2541,87644,86886,74426,79523,29450,08968,6718,162136,833
1926–3036,88640,45677,34214,7589,86924,62751,64450,325101,969
1931–3530,71533,23763,952−5,256*−4,662*−9,918*25,45928,57554,034
1936–4032,60437,19269,7967,4334,93512,36340,03742,12782,164
1941–4544,17047,02991,1991,4126542,06645,58247,68393,265
1946–4954,62656,421111,04714,07510,15124,22668,70166,572135,273
Totals, 1861–1949580,981637,8911,218,872321,636215,302536,938902,617853,1931,755,810

Trend of Population.—While the population of New Zealand had been growing, the rate of increase declined substantially, the lowest point being reached in 1935. The next four years showed steady improvement until 1939, when the percentage increase recorded was the highest since 1927. With the outbreak of war, however, a check on migration and the movement of members of the Armed Forces, &c., introduced abnormal features. Since the end of the war substantial improvement has been noted, both in natural increase and migration increase.

For many years past immigration has contributed relatively small increments to the population; indeed, in the five depression years 1931–35 there was a net exodus from New Zealand of 9,918. With the passing of the depression the net inward flow resumed, but fell to very low proportions during the war years. Recovery again became manifest and during the years 1946–49 the inward excess totalled 24,226, which gives the highest average annual increase since 1921–25.

In the years following 1930, natural increase (excess of births over deaths) reached a critical position, falling to a rate of 7.89 per 1,000 of mean population by 1936. It is obvious that this meant that the population was still increasing at a moderate rate, but owing to the time-lag it was less obvious to many that a rate as low as this meant, in the near future, a stationary or, more probably, a declining population. In other words, the population was failing to reproduce itself in sufficient numbers for growth and even for the maintenance of a stationary population.

One method of measuring the status of a population is that of the net reproduction index, which is based on female children born and probably surviving. Gross and net reproduction rates in recent years are:—

Year.Gross Rate.Net Rate.
19381.1061.028
19391.1541.073
19401.2841.195
19411.3691.274
19421.2981.208
19431.1581.077
19441.2981.207
19451.4211.321
19461.5851.473
19471.6841.567
19481.6511.537
19491.6231.511

Though economic factors are not the only, and possibly not even the most important, cause of the decline in the birth-rate, the immediate cause of the low level reached in 1935 was almost certainly the economic depression from 1931 onwards. As economic conditions recovered there was some improvement in the birth-rate (though accompanied by higher death-rates), and the net reproduction index returned to a level of 1.274 in 1941, indicating a modest margin of growth. Decreases were recorded for the two following years, but the next four years showed substantial improvements, with the result that the rate for the 1947 year was the highest of the entire series; a slight recession was, however, recorded for 1948 and 1949. This index is not and cannot be, an exact measure, but it does afford a close and fairly reliable approximation in normal circumstances. In its use it is necessary to remember, inter alia, that the probability of survival of the children born is calculated on past mortality experience in more or less normal conditions; no allowance is made for wars, major epidemics, or other factors which may result in abnormal losses of population.

The foregoing observations necessarily omit any forecast of the trend of external migration; also they do not take into account the Maori section of the population, which is increasing fairly rapidly.

SEX PROPORTIONS.—The following table is interesting as showing the early excess of males and the gradual equalization of the sexes in New Zealand. The figures quoted are exclusive of Maoris.

Census Year.Males.Females.Females to 1,000 Males
186160,43537,469620
1871149,600105,328704
1881268,553219,336817
1891331,744292,711882
1901404,799365,505903
1911530,433475,152896
1921621,136593,541956
1926686,384658,085959
1936756,226735,258972
1945782,602820,9521,049

The preponderance of males in the early years of New Zealand was doubtless due to the fact that the difficulties of pioneering and the remoteness of the country from Europe were such as to deter female immigration to a greater extent than male. This was accentuated by the character of the early industries.

Of the two sources from which the population has been recruited—viz., migration and natural increase—the effect of the former has hitherto been to give in the aggregate a considerable preponderance of males, and of the latter to give a regular preponderance of females.

The 1945 census results—for the first time in the history of New Zealand—recorded an excess of females. The figures were, however, affected by the absence from New Zealand of a large number of Armed Forces at census date. Their inclusion would restore an excess of males, the number of females per 1,000 males being 995 if allowance is made for members serving overseas. Deaths of members of the Forces during the war period have still further accentuated the position as disclosed by the 1945 census.

INTERCENSAL RECORDS.—As already noted, the intercensal statements of total population, prepared from the records of vital statistics and of external migration, have been by virtue of the favourable position of New Zealand in this respect relatively accurate, and the 1945 census results, despite abnormal conditions due to the war, afforded a satisfactory demonstration of this.

Year Ended 31st March,Population (Excluding Maoris) at End of Year.Increase During Year.Mean Population for Year.
Males.Females.Totals.Numerical.Per Cent.

* Minus sign (-) signifies a decrease.

1940781,723768,1981,549,92113,6570.891,543,748
1941765,131778,8511,543,982−9,939*−0.38*1,544,371
1942751,312789,3461,540,658−3,324*−0.22*1,537,734
1943740,369797,2681,537,637−3,021*−0.20*1,545,052
1944739,744805,2971,545,0417,4040.421,539,978
1945763,155815,2361,578,39133,3502.161,564,436
1946827,449829,2571,656,70678,3154.961,610,406
1947842,786844,7401,687,52630,8201.861,669,355
1948863,279861,9881,725,26737,7412.241,705,322
1949882,491878,1411,760,63235,3652.051,740,425
1950902,766895,3201,798,08637,4542.131,777,026

As population figures for the calendar year are in demand for numerous purposes, figures are given also for years ending 31st December.

Year Ended 31st March,Population (Excluding Maoris) at End of Year.Increase During Year.Mean Population for Year.
Males.Females.Totals.Numerical.Per Cent.

* Minus sign –) signifies a decrease.

1939785,946765,3881,551,33420,9681.371,539,420
1940766,021775,9101,541,931−9,403*−0.61*1,546,312
1941751,919786,2271,538,146−3,785*−0.25*1,538,620
1942745,008795,6221,540,6302,4840.161,545,112
1943741,045802,7411,543,7863,1560.201,538,651
1944762,566812,8851,575,45131,6652.051,556,318
1945805,095823,6931,628,78853,3373.391,593,947
1946839,440840,2131,679,65350,8653.121,659,145
1947858,054856,9451,714,99935,3462.101,696,188
1948876,780873,3741,750,15435,1552.051,731,583
1949896,853890,7021,787,55537,4012.141,767,674

The figures given in the two preceding tables show the population exclusive of Maoris. The following table shows the population inclusive of Maoris.

Population (Including Maoris) at End of Year.Mean Population for year.
Males.Females.Totals.
Years Ended 31st March
1940828,971811,9301,640,9011,633,447
1941812,421823,8091,636,2301,635,715
1942798,938835,4001,634,3381,630,419
1943789,400844,6941,634,0941,640,191
1944789,772854,1281,643,900637,570
1945814,470865,5021,679,9721,664,585
1946879,523878,4811,758,0041,710,990
1947897,162896,0631,793,2251,772,787
1948919,279914,9911,834,2701,812,609
1949940,507932,7941,873,3011,851,291
1950962,483951,6371,914,1201,891,307
Years Ended 30th June
1940821,983814,0841,636,0671,636,680
1941802,716826,3021,629,0181,634,238
1942800,492838,2101,638,7021,631,375
1943786,189846,4801,632,6691,639,407
1944796,969856,7881,653,7571,641,433
1945819,456868,5991,688,0551,673,378
1946879,987881,2721,761,2591,729,897
1947901,812899,9421,801,7541,782,253
1948921,885918,2971,840,1821,822,542
1949944,221936,3051,880,5261,861,186
1950965,500954,6921,920,1921,901,368
Years Ended 31st December
1939832,841808,7981,641,6391,628,512
1940813,028820,6171,633,6451,637,305
1941799,241832,0351,631,2761,630,948
1942793,681842,7221,636,4031,639,572
1943790,842851,1991,642,0411,635,635
1944813,604862,6891,676,2931,655,794
1945855,886872,5551,728,4411,694,714
1946893,281891,0531,784,3341,761,399
1947913,583909,4911,823,0741,802,637
1948934,329927,5941,861,9231,841,531
1949956,107946,5481,902,6551,881,118

EXTERNAL MIGRATION.—Statistics of external migration have been recorded in New Zealand since 1860. Since 1st April, 1921, they have been compiled from individual statements obtained from each person entering or leaving New Zealand.

Commencing with the year 1933–34, the year ending 31st March has been adopted as a standard for the statistical expression of external migration in place of the calendar year formerly in use. The principal reason for the change was to avoid the partition of a season's migration movement into two statistical years as was inevitable with the calendar year ending in the middle of the summer flow of tourists and immigrants.

Including crews of vessels, 98,379 persons from overseas arrived in New Zealand during the year ended 31st March, 1950, which, compared with 1948–49, shows the substantial increase of 25,738. During the same period, 88,958 persons departed. This figure, compared with the corresponding one for 1948–49, shows an increase of 20,344.

In addition to the figures just quoted there were also 2,489 “through” passengers who called at a port of New Zealand en route to their destination.

The excess of total arrivals over total departures for 1949–50 was 9,421, compared with a similar excess of 4,027 during 1948–49.

The numbers of arrivals and departures during the last ten years are given in the table following. Crews of vessels, “through” passengers, tourists on cruising liners, and members of the Armed Forces, &c., have not been taken into account in this table.

Year Ended 31st March,Arrivals.Departures.Excess of Arrivals over Departures.
Males.Females.Totals.Males.Females.Totals.
19417,0536,76113,8146,9556,14513,100714
19423,7093,3937,1023,7023,1916,893209
19431,8901,2433,1331,3821,2102,592541
19442,1221,6253,7471,8481,7923,640107
19453,6673,5407,2073,1123,0776,1891,018
19466,4166,89313,3095,6575,30910,9662,343
194712,68212,67625,35811,41710,90322,3203,038
194817,00416,14033,14413,94513,44327,3885,756
194918,64617,30035,94615,83715,92831,7654,181
195026,19024,69050,88021,47121,52943,0006,989

The figures for 1949–50, both for arrivals and departures, are the highest ever recorded in the history of New Zealand migration statistics.

Classes of Arrivals and Departures.—The following table gives an analysis of all classes of arrivals during the last five years, including “through” passengers, and crews.

1945–46.1946–47.1947–48.1948–49.1949–50.
Immigrants intending permanent residence4,6458,1069,64811,38717,701
New Zealand residents returning3,4047,94711,98812,84018,463
Visitors—     
  Tourists2,5764,8407,6927,82810,768
  On business9661,6961,7321,7691,936
  Theatrical, entertaining, &c.872333877001,117
  Others, officials, &c.859799776975410
  In transit7721,625890447485
Not stated 11231  
Through passengers3,0715,7425,1363,0732,489
Crews36,03731,69834,17636,69547,499
    Totals52,41762,79872,45675,714100,868

The succeeding table gives a similar analysis of departures.

1945–46.1946–47.1947–48.1948–49.1949–50.
New Zealand residents departing—     
  Permanently4,6356,0515,7696,6796,886
  Temporarily2,6036,86510,72513,56620,107
Temporary residents departing3,7289,40410,89411,52016,007
Through passengers3,0715,7425,1363,0732,489
Crews33,78432,03133,31936,84945,958
    Totals47,82160,09365,84371,68791,447

Ages.—The following table gives the age-distribution of immigrants and emigrants for the twelve months ended 31st March, 1950.

Age, in Years.Permanent Arrivals.Permanent Departures.Excess of Arrivals over Departures.
Males.Females.Totals.Males.Females.Totals.
0–141,7171,5353,2525045131,0172,235
15–242,1831,4883,6719427141,6562,015
25–342,4962,1504,6467911,0531,8442,802
35–441,2941,4232,7174415169571,760
45–599221,1882,1103504467961,314
60 and over4338201,253253355608645
Unspecified18345235844
    Totals9,0638,63817,7013,2843,6026,88610,815

ASSISTED IMMIGRATION.—Various systems of assisted immigration have been in force since 1871, with the exception of the period 1892 to 1903 (inclusive). The scheme that was operating prior to 1947 had been largely suspended since 1927, and only 50 immigrants received financial assistance during the ton years ended 31st March, 1946.

To alleviate the shortage of staffs in mental hospitals, the Government decided in 1946 to recruit labour in the United Kingdom, and the number of arrivals under this system totalled 240 (all females).

In July, 1947, a comprehensive assisted passage scheme was introduced by the Government. Under this scheme financial aid has been granted to certain categories of immigrants. Legibility has been confined to single residents of the United Kingdom (with no dependants) between the ages of twenty and thirty-five years who were suitable for, and Milling to accept employment in, a wide variety of productive and servicing occupations. Free passages were provided for those successful applicants who served in the United Kingdom Armed Forces (including Merchant Navy) during the Second World War; all others selected were required to contribute £10 towards the cost of their fares. All assisted immigrants are required to enter into a contract with the New Zealand Government that they will engage in approved employment for two years after their arrival in New Zealand.

During the year 1949–50 the Government agreed to accept a draft of displaced persons from Europe, who were brought to New Zealand in shipping provided by the International Refugee Organization. These settlers were chosen by a New Zealand Selection Mission, and the draft comprised 941 persons, made up of young single men and women, widows with one child, family groups, orphans, and a number of elderly people.

A scheme of child migration from the United Kingdom also came into operation during the year, the first draft arriving in June, 1949. This scheme was devised to bring to New Zealand, on a guardianship basis, British children between the ages of five and seventeen years, whose parents are prepared to agree to their placement with foster-parents approved by the Superintendent of Child Welfare. During the year ended 31st March, 1950, 169 children arrived under this scheme, comprising 114 boys and 55 girls.

In May, 1950, a new immigration policy was announced by the Government, the main changes being as follows:—

  1. The existing scheme in regard to unmarried British immigrants, including nominations, to continue, but with an extension of the age-limit from thirty-five to forty-five years of age.

  2. The contribution of £10 previously required to be paid by other than ex-service personnel towards the cost of their fares to New Zealand is abolished. In future free passages will be provided for all British immigrants, both single and married (including wives and families), selected under the scheme.

  3. Extension of the free passage scheme to certain categories of married British immigrants with up to two children.

  4. The acceptance, after negotiation and conclusion of agreements with the countries concerned, of a number of single non-British men and women between the ages of twenty and thirty-five years.

The number of assisted immigrants arriving in New Zealand since the reintroduction of the scheme was as follows:—

 Number.
Year ending 31st March, 1947158
Year ending 31st March, 19481,137
Year ending 31st March, 19491,522
Year ending 31st March, 19502,528

In the preceding migration tables, assisted immigrants are included in the totals of “Immigrants intending permanent residence.”

PASSPORTS.—Authority for the issue of passports in New Zealand and by New-Zealand representatives overseas is contained in the Passports Act, 1946, and the Passport Regulations 1946.

Permission to Enter New Zealand.—Apart from British subjects arriving from Australia, no person sixteen years of age or over may land in New Zealand unless in possession of a valid passport or other travel document satisfactorily establishing nationality and identity. Exemption (which is additional to the requirements of the Immigration Restriction and Undesirable Immigrants Exclusion Acts) may be granted, by the Minister of Internal Affairs. With the exception of nationals of those countries with which New Zealand has concluded agreements for the mutual abolition of visas, all aliens require a British visa.

For persons from the Cook Islands, Niue, or Western Samoa the only requirement is a permit to visit New Zealand granted by the Resident Commissioner of the Cook Islands or Niue, or the High Commissioner for Western Samoa, as the case may be.

The regulations, further, do not apply to a British subject who is the master or a member of the crew of the vessel in which he arrives.

Departure from New Zealand.—British subjects leaving New Zealand, with the exception of those travelling to Australia or making the round trip to New Zealand's island territories, should be in possession of a valid passport or other travel document.

IMMIGRATION RESTRICTION.—The legislation respecting the restriction of immigration into New Zealand is contained in the Immigration Restriction Act, 1908, and its amendments, and the Undesirable Immigrants Exclusion Act, 1919. It is administered by the Customs Department.

Subject to certain exemptions, the following classes of persons are prohibited from landing in New Zealand:—

  1. Persons not of British birth and parentage, unless in possession of permits issued by the Customs Department. (Note.—A person is not deemed to be of British birth and parentage by reason that he or his parents or either of them is a naturalized British subject or by reason that he is an aboriginal Native or the descendant of an aboriginal Native of any dominion (other than New Zealand), colony, possession, or protectorate of His Majesty.)

  2. Idiots or insane persons.

  3. Persons suffering from contagious diseases which are loathsome or dangerous.

  4. Persons arriving in New Zealand within two years after the termination of a period of imprisonment for a serious offence.

  5. Persons who are considered by the Attorney-General to be disaffected or disloyal, or of such a character that their presence in New Zealand would be injurious to the peace, order, and good government of the country.

  6. Aliens of the age of fifteen years, or over who refuse or neglect to take an oath (or make an affirmation) of obedience to the laws of New Zealand.

To obtain permits to enter New Zealand as permanent residents, application must be made by the intending immigrants themselves to the Minister of Customs, Wellington. The application must be made in the prescribed form and must be supported by documents duly attested in the country of origin, in which country the applicant must have resided for at least twelve months prior to the date of application. Each application is considered individually on its own merits.

Provision is made in the law to permit persons covered by clause (1) above to pay temporary visits to New Zealand for the purposes of business, pleasure, or health. Temporary permits are normally restricted to a period not exceeding six months, but may be extended if the proper authorities consider that the circumstances warrant such action. A deposit of £10 is required in respect of such temporary permit, and is returned on the departure of the visitor if the conditions of the temporary permit have been complied with. The Collector of Customs may also require, if he so decides, a deed to be entered into by some person or persons resident in New Zealand approved by him guaranteeing to pay all expenses that may be incurred by the Crown or any public body for the visitor's maintenance, relief, arrest, or detention in New Zealand or his deportation therefrom.

Provision is also made whereby, under certain conditions, students may be allowed to enter New Zealand temporarily.

Restricted Immigrants.—When persons who are lunatic, idiotic, deaf, dumb, blind, or infirm, arrive in New Zealand and are likely to become a charge upon the public or upon any public or charitable institution, the master, owner, or charterer of the ship by which such persons came to New Zealand may be called on to enter into a bond of £100 for each such person, guaranteeing payment of any expenses which may be incurred for his support and maintenance by or in any such institution within a period of five years.

Declaration by Persons Arriving in New Zealand.—Every person of and over the age of fifteen years who lands in New Zealand must, unless exempted by the Minister of Customs, make and deliver to an officer of Customs a declaration giving the following particulars: Name, age, marital status, occupation, birthplace, nationality, race, particulars of children under fifteen years of age arriving with him, residence, &c.

NATIONALITY AND NATURALIZATION.—The British Nationality and New Zealand Citizenship Act, 1948, which came into force on the 1st January, 1949, was enacted following a conference of nationality experts of British Commonwealth countries in February, 1947, when it was agreed that each Commonwealth country should establish its own citizenship status. Citizens of the various Commonwealth countries also possess a common British status as members of the wider association of peoples comprising the Commonwealth.

Upon the commencement of the Act. New Zealand citizenship was automatically conferred on the following classes of British subjects:—

  1. Those born in New Zealand.

  2. Those naturalized in New Zealand.

  3. Those ordinarily resident in New Zealand for at least one year.

  4. Those whose fathers were British subjects born or naturalized in New Zealand.

  5. Women (being British subjects) married before the commencement of the Act to men who become citizens under the various provisions of the Act.

After the commencement of the Act, New Zealand citizenship may be acquired in the following ways:—

  1. By birth in New Zealand.

  2. By descent.

  3. By registration.

  4. By naturalization.

The principal conditions governing the grant of naturalization to aliens under the 1948 Act are that the applicant shall satisfy the Minister of Internal Affairs (a) that he has resided in New Zealand for a period of five years, (b) that he is of good character and has an adequate knowledge of the English language, (c) that if his application is granted he intends to reside permanently in New Zealand, (d) that the applicant gives a year's notice of his intention to apply, and (e) that the applicant possesses a sufficient-knowledge of the responsibilities and privileges of New Zealand citizenship. There is discretionary provision for the Minister to allow residence in other British Commonwealth countries and service in the Armed Forces to be reckoned for the purposes of the first condition. Conditions (d) and (e) are now.

Certificates of naturalization granted during the year ended 31st March, 1949, under the authority of the British Nationality and Status of Aliens (in New Zealand) Act, 1928, the amending Act of 1943, and the British Nationality and New Zealand Citizenship Act, 1948, are shown by sex and country of birth in the table below. These figures also include certificates issued to married women under the 1946 amending Act.

Country of Birth.Males.Females.Total.
New Zealand 11
United Kingdom 11
Cook Islands1 1
Western Samoa1 1
Tonga112
Norway1 1
Sweden314
Denmark5 5
Finland2 2
Russia (U.S.S.R.)336
Estonia415
Latvia112
Poland111122
Germany111021
Netherlands3 3
Belgium 11
Switzerland527
Italy111021
Czechoslovakia336
Austria459
Hungary224
Yugoslavia381149
Greece415
Egypt 11
Syria1 1
Lebanon314
Japan 11
Tahiti1 1
Totals11968187

Under the provisions of the British Nationality and Status of Aliens (in New Zealand) Amendment Act, 1946, alien women marrying British subjects did not automatically Income British by marriage according to New Zealand law, but could acquire British nationality only by the grant of a certificate of naturalization. This Act was in force from the 9th October, 1946, until the 31st December, 1948, and was repealed by the British Nationality and New Zealand Citizenship Act, 1948. The number of such certificates of naturalization included in 1948–49 was 47.

From the date of the commencement of the last-mentioned Act (1st January, 1949 alien women who marry New Zealand citizens now acquire citizenship by the more simple process of registration. The acquisition of New Zealand citizenship automatically confers the status of British nationality. Certificates of registration as New Zealand citizens are issued, and these are for all intents and purposes equivalent to the former certificates of naturalization. The number of certificates of registration issued to females during the three months ended 31st March, 1949, was 3.

Alien minor children may acquire New Zealand citizenship by registration, following the naturalization of their parents or in special cases in their own right. Before the 1st January, 1949, minor children were included in the naturalization certificate issued to their father or mother. During the year ended 31st March, 1949, 15 children acquired British nationality by registration or by virtue of their parents' naturalization.

The complete numbers of naturalizations, registrations, &c., during the year ended 31st March, 1950, were as follows:—

Country of Birth.Certificates of Naturalization.Certificates of Registration as a British Subject and New Zealand Citizen.Certificates of Registration as a British Subject and New Zealand Citizen—Minor Children.
Males.Females.Males.Females.Males.Females.
New Zealand 1    
United Kingdom1 14 1 
Republic of India  21  
Pakistan  1   
Sarawak   1  
Australia   1  
Western Samoa2  1  
Tonga1  1  
Gilbert and Ellice Islands     1
Norway4  12 
Sweden3   1 
Denmark71 1  
Finland1     
Russia (U.S.S.R.)2  1  
Estonia1   2 
Latvia1  1  
Lithuania1     
Poland131 321
Germany124 811
Netherlands2  1  
France11    
Switzerland5  2  
Italy72 10  
Czechoslovakia5  2 2
Austria31 8  
Hungary1  1  
Yugoslavia412 12  
Greece5  6  
Egypt   1  
Trans-Jordan   1  
Syria1     
Lebanon2     
Burma  11  
Indonesia   1  
United States of America1     
Tahiti1     
    Totals12413186695

There was one renunciation of New Zealand citizenship by a female, held to be a United States citizen, during the year.

Of the certificates of registration granted, 16 were to male British subjects from other Commonwealth countries who acquired New Zealand citizenship by virtue of one year's residence in the country. The great majority (60) of the females were alien women, married to New Zealand citizens by birth or naturalization, who desired to acquire New-Zealand citizenship.

REGISTRATION OF ALIENS.—The registration of aliens in New Zealand is provided for by the Aliens Act, 1948, the administration being carried out by the Police Department. This Act repealed earlier enactments relating to aliens, including the Registration of Aliens Act, 1917, and the 1920 amendment; the Registration of Aliens Suspension Act, 1923; and the Aliens Emergency Regulations 1940 and amendments.

The number of aliens on the New Zealand register at 1st April, 1950, was 8,384, comprising 5,769 males and 2,615 females. This does not purport to be the complete number in New Zealand, as certain classes are not required to register, including the following: (a) Children under sixteen years of age; (b) Persons holding diplomatic status, Consuls, or employees of Embassies, Legations and Consulates who are resident in New Zealand solely for the purpose of performing official duties; (c) certain temporary visitors to New Zealand; (d) Western Samoans, except in special circumstances.

The following table shows the numbers on the register at 1st April, 1949, and 1st April, 1950.

Country of Nationality.1st April, 1949.1st April, 1950.
Males.Females.Totals.Males.Females.Totals.
Norway1071512212415139
Sweden721587751994
Denmark1836124423085315
Finland2432726430
Russia (U.S.S.R.)221133412970
Estonia114153369102
Latvia63972103175
Lithuania2 25865123
Poland351343694523442965
Germany156135291148139287
Netherlands14883231337114451
Belgium2542927532
France58581166151112
Switzerland1023513713049179
Italy172143315149140289
Czechoslovakia2734616968137
Austria254166323971
Hungary232144475198
Yugoslavia595151746555171726
Greece1035215510359162
Syria94139413
Lebanon681481018
China2,0564012,4572,2135432,756
United States of America539186725571227798
Tonga322052492675
Other countries292655333366
Stateless2523484655101
    Totals4,9081,8806,7885,7692,6158,384

The number of aliens as at 1st April, 1950, shows an increase of 1,596 as compared with twelve months earlier, the countries contributing the major portion of this increase being China (299), Poland (271), Netherlands (220), Latvia (166). Lithuania (121), and Estonia (87).

A summary follows giving information as to ages of registered aliens as at 1st April, 1949; similar data were not compiled for 1950.

Age-groupMales.Females.Totals.
16 years and under 21 years266241507
21 years and under 30 years8114151,226
30 years and under 40 years7193391,058
40 years and under 50 years1,2124431,655
50 years and under 60 years9962521,248
60 years and under 70 years604127731
70 years and over26059319
Not specified40444
    Totals4,9081,8806,788

DISTRIBUTION OF POPULATION—North and South Islands.—In 1858 the North Island had a larger population than the South, but this position was reversed at the succeeding enumeration and the South Island had the larger population (exclusive of Maoris) at each census from 1861 to 1896. In 1901 the North Island was found to have slightly the larger total and since then has steadily increased its lead. The Maori War which broke out in 1860 retarded settlement in the North, while a large area of land reserved for the Maoris was for many years a serious hindrance to the development, by Europeans, of this portion of New Zealand. The South Island was practically free from Maori troubles, and settlement was more rapid, though much of the land was disposed of in large areas. The discovery of gold in Otago in 1861 and on the West Coast in 1864 attracted to these localities considerable numbers of minors. The following table gives the population of the North and South Islands as disclosed by each census since 1881.

Census Year.Population (Excluding Maoris).Proportions Per Cent.
North Island.South Island.Totals.North Island.South Island.

*Includes Maori half-castes (total, 4,236), living as Europeans.

1881191,534296,355487,88939.2660.74
1886248,909327,615576,52443.1756.83
1891279,642344,813624,45544.7855.22
1896338,739362,355701,09448.3251.68
1901388,626381,678770,30450.4549.55
1906474,605411,390885,99553.5746.43
1911561,281444,3041,005,58555.8244.18
1916648,439447,7891,096,22859.1540.85
1921741,255*477,658*1,218,913*60.8139.19
1926831,813512,6561,344,46961.8738.13
1936938,939552,5451,491,48462.9537.05
19451,050,984552,5701,603,55465.5434.46

The natural increase of European population (i.e., excess of births over deaths) for the South Island during the 1936–45 intercensal period was 45,692, but the total net increase was only 25. For the North Island the natural increase was 106,317, and the total net increase 112,045. The existence of a northward drift of population was still evident, doubtless being accentuated by factors associated with the war. It should be remembered in this connection that there were 45,381 members of the Armed Forces overseas at the date of the 1945 census, and the total net increase would be affected accordingly.

At 31st March, 1950, the North Island population was estimated as 1,301,363, inclusive of 112,382 Maoris; and the South Island population as 612,757, inclusive of 3,652 Maoris.

Provincial Districts.—The approximate areas and the populations, inclusive of Maoris, of the various provincial districts are as follows:—

Provincial District.Area (Square Miles).Census Population.Estimated Population, 1st April. 1950.
1901.1921.1936.1945.

* Including 196 Maori wives of Europeans, provincial district not specified.

Auckland25,420204,899406,899546,970640,971734,963
Hawke's Bay4,26039,60465,08076,96879,08488,700
Taranaki3,75040,46565,24477,65276,83384,000
Wellington10,870146,326254,695316,446349,404393,700
Marlborough4,22013,74618,28919,14920,73722,000
Nelson10,87038,06747,73459,48157,20163,500
Westland4,88014,56614,25318,67617,00718,400
Canterbury13,940144,195199,969234,399246,848276,157
Otago—      
  Otago portion14,050125,782137,062151,213144,035156,400
  Southland portion11,48048,01662,43972,85670,17876,300
    Totals103,740815,862*1,271,6641,573,8101,702,2981,914,120

The foregoing table illustrates the wide disparities in the size of the provincial districts, whether measured by area or by population.

The area shown for New Zealand now includes certain islands which formerly were excluded. These are Kermadec Islands (13 square miles), Campbell Island (44 square miles), and the uninhabited islands. Three Kings, Solander, Bounty, Snares, Antipodes, and Auckland, with a total area of 263 square miles.

Urban and Rural Population.—On 25th September, 1945, somewhat over two-fifths (41.4 per cent.) of the population of New Zealand (excluding Maoris) was included in the four principal urban areas—Auckland, Wellington, Christchurch, and Dunedin—and over one-half (65.0 per cent.) in these or in the ten secondary urban areas. In the following table urban population means the population in cities and boroughs, while rural population covers counties, all town districts, and extra-county islands. It will be observed that there was a marked slackening in the rate of the urban drift between 1926 and 1936, but the 1945 figures, due, no doubt, to wartime influences, disclose a substantial increase in the urban population, whereas the rural-population, for the first time, recorded a decrease.

Census.Population.Per Cent.
Rural.Urban.Migratory.Rural.Urban.Migratory.

*Figures exclude military and internment camps.

†Figures include Armed Services in New Zealand at census date and internment camps, but exclude members of the United States Forces present, in New Zealand and also enemy prisoners of war.

‡Inclusive of Maori half-caste: (3,221 in 1916 and 1,236 in 1921) living as Europeans.

Excluding Maoris—      
  1881290,254194,7412,89459.4939.920.59
  1886326,447245,3554,72256.6242.560.82
  1891351,109270,0413,30556.2343.240.53
  1896390,694307,0223,37855.7343.790.48
  1901416,701349,8423,76154.0945.420.49
  1906457,297424,2514,44751.6147.890.50
  1911495,577505,0035,00549.2850.220.50
  1916*501,956585,3063,46346.0253.660.32
  1921531,694681,9885,23143.6255.950.43
  1926552,344785,0407,08541.0858.390.53
  1936602,519884,2934,67240.4059.290.31
  1945591,8551,008,5343,16536.9162.890.20
Including Maoris—      
  1926610,446790,5557,13843.3556.140.51
  1936677,087892,0244,69943.0256.680.30
  1945674,8211,024,2923,18539.6460.170.19

Another conception of urban and rural population is presented in the next table, which covers the period 1901–1945. All Maoris are omitted for the years 1926–1945, but Maori half-castes living as Europeans are included in 1901 (2,407); 1911 (2,879); 1916 (3,221); and 1921 (4,236). The great bulk of Maoris inhabit rural communities. In the case of the larger centres there are numerous suburban boroughs and town districts; consequently, as regards the fourteen urban areas the centre has been taken as including all cities, boroughs, and town districts within the territory of the present urban area. In other instances the “centre” is a borough or town district.

Centres of1901.1911.1916.1921.1926.1936.1945.
Population
1,000–2,49941,81454,89565,70680,12084,79282,51674,752
2,500–4,99933,47837,19246,15956,48749,59451,77970,985
5,000–9,99936,83451,32644,83823,30632,07348,29259,519
10,000–24,99910,63762,71582,770128,984155,105172,885168,485
25,000 and over214,098302,943349,271401,710472,603531,588636,389
Totals, urban336,861509,071588,744690,607794,167887,0601,010,130
Totals, rural432,087494,385498,518523,075543,217599,752590,259
Grand totals (excluding migratory)768,9431,003,4561,087,2621,213,6821,337,3841,486,8121,600,389
Per Cent.
1,000–2,4995.445.476.046.606.345.554.67
2,500–4,9994.353.714.254.653.713.484.44
5,000–9,9994.795.114.131.922.403.253.72
10,000–24,9991.386.257.6110.6311.6011.6310.53
25,000 and over27.8530.1932.1233.1035.3335.7539.76
Totals, urban43.8150.7354.1556.9059.3859.6663.12
Totals, rural56.1949.2745.8543.1040.6240.3436.88
Grand totals (excluding migratory)100.00100.00100.00100.00100.00100.00100.00

The comparison is not an exact one, but is sufficiently accurate to indicate the general trend of urbanization. For instance, it is noticeable that in 1901 29 per cent. of the population were in towns of 10,000 population or over; by 1945 the proportion had become 50 per cent.

An important characteristic of the distribution of urban population in New Zealand is what may be termed its decentralization. In place of one great metropolis containing a huge proportion of the population, as in the case of the Australian States—e.g., Victoria, whoso capital city (Melbourne) contains three-fifths of the total population of the State—the more highly urbanized portion of the community is localized in four widely separated centres. These four centres have always existed more or less on the same plane, a fact which has played no small part in the development of the country. An interesting feature is the wide gap which has long existed between the four major centres and the next largest towns.

Urban and rural communities are not evenly distributed. The South Island, for example, contains proportionately more rural population than does the North Island.

RECENT MOVEMENTS IN TOWNS AND COUNTIES.—Urban Areas.—Urban areas afford the best basis of comparison of population-growth in the case of the largest towns, since their boundaries are stable and, of greater significance, they include the suburbs as well as the central city or borough.

Urban Area.Population (Excluding Maoris).Population (Including Maoris).
1916.1921.1926.1936.1945.1945.
Auckland133,712157,757192,223210,393258,467263,370
Wellington95,235107,488121,527149,382172,320173,520
Christchurch92,733105,670118,501132,282149,570150,047
Dunedin68,71672,25585,09581,84883,19183,351
Hamilton8,98013,79816,53819,37325,94526,401
Gisborne12,66014,45014,78915,52116,11116,984
Napier15,13117,18718,06618,44319,82120,297
Hastings11,01812,99014,46017,71519,74120,330
New Plymouth9,79512,64515,93118,19420,22920,642
Wanganui19,51723,52326,12925,31225,76726,462
Palmerston North14,00616,88519,70923,95327,09127,294
Nelson9,96210,63211,75213,54516,48316,577
Timaru13,71615,50716,82218,80519,56919,596
Invercargill17,86219,21021,84925,68227,46427,583

The next table presents the population (including Maoris) as estimated at the 1st April, 1950, for the component cities, boroughs, and town districts included in the relevant urban areas.

Urban Area.Population (Including Maoris).

*Excludes a small area which, though part of the borough, is not within the urban area.

Auckland 
Auckland City143,300
Birkenhead Borough4,350
Northcote Borough2,950
Takapuna Borough*11,950
Devonport Borough12,150
New Lynn Borough5,550
Mount Albert Borough27,200
Mount Eden Borough22,000
Newmarket Borough3,060
Ellerslie Borough3,460
One Tree Hill Borough14,100
Mount Roskill Borough18,800
Onehunga Borough16,250
Otahuhu Borough8,390
Remainder of urban area14,990
    Total308,500
Wellington 
Wellington City135,600
Lower Hutt City*36,800
Petone Borough11,700
Eastbourne Borough*2,670
Johnsonville Town District3,300
Remainder of urban area3,230
    Total193,300
Christchurch 
Christchurch City128,900
Riccarton Borough8,680
Lyttelton Borough*3,140
Remainder of urban area30,780
    Total171,500
Dunedin 
Dunedin City72,100
Port Chalmers Borough2,740
West Harbour Borough2,150
St. Kilda Borough7,700
Green Island Borough*3,140
Remainder of urban area3,370
    Total91,200
Hamilton 
Hamilton City*29,400
Remainder of urban area1,600
    Total31,000
Gisborne 
Gisborne Borough16,850
Remainder of urban area2,350
    Total19,200
Napier 
Napier City20,050
Taradale Town District2,140
Remainder of urban area1,410
    Total23,600
Hastings 
Hastings Borough17,600
Havelock North Town District1,730
Remainder of urban area4,670
    Total24,000
New Plymouth 
New Plymouth City21,500
Remainder of urban area2,300
    Total23,800
Wanganui 
Wanganui City26,000
Remainder of urban area2,800
    Total28,800
Palmerston North 
Palmerston North City30,500
Remainder of urban area1,600
    Total32,100
Nelson 
Nelson City16,550
Remainder of urban area2,450
    Total19,000
Timaru 
Timaru City20,900
Remainder of urban area1,200
    Total22,100
Invercargill 
Invercargill City26,700
South Invercargill Borough1,230
Remainder of urban area2,970
    Total30,900

Counties.—The following table gives the estimated population (including Maoris) of individual counties at 1st April, 1950, together with the approximate area of each. It should be noted that “Administrative Counties” do not include boroughs or town districts independent of county control, but include dependent town districts.

Administrative County.Population (Including Maoris).Approximate Area, In Square Miles.
North Island—  
  Mangonui8,520958
  Whangaroa2,670240
  Hokianga8,750613
  Bay of Islands11,580824
  Whangarei12,6201,044
  Hobson6,150745
  Otamatea5,780421
  Rodney5,510477
  Waitemata23,000607
  Eden6,4607
  Great Barrier Island190110
  Manukau12,800239
  Franklin16,950550
  Raglan11,100925
  Waikato13,360644
  Waipa14,170445
  Otorohanga6,020600
  Kawhia2,160330
  Waitomo7,3701,138
  Taumarunui3,230878
  Coromandel2,400439
  Thames2,420419
  Hauraki Plains5,120233
  Ohinemuri3,250237
  Piako11,700444
  Matamata11,850994
  Tauranga12,400721
  Rotorua7,6401,040
  Taupo6,6903,040
  Whakatane11,7501,683
  Opotiki5,1801,326
  Matakaoa2,080295
  Waiapu6,670793
  Uawa1,610261
  Waikohu3,4401,060
  Cook7,290791
  Wairoa8,6101,371
  Hawke's Bay15,9501,672
  Waipawa3,300524
  Waipukurau1,090128
  Patangata2,620651
  Dannevirke4,520428
  Woodville1,820156
  Weber310118
  Ohura1,790423
  Whangamomona880447
  Clifton2,620443
  Taranaki7,090229
  Inglewood3,180199
  Egmont4,740239
  Stratford4,980419
  Eltham3,490207
  Waimate West2,96083
  Hawera5,950191
  Patea3,680591
  Kaitieke3,270550
  Waimarino3,040883
  Waitotara3,570468
  Wanganui3,650460
  Rangitikei9,4701,675
  Kiwitea2,290359
  Pohangina1,310259
  Oroua3,920190
  Manawatu6,070265
  Kairanga5,480184
  Horowhenua8,640544
  Hutt13,650450
  Makara6,080101
  Pahiatua2,870286
  Akitio1,000321
  Castlepoint490230
  Eketahuna1,850311
  Mauriceville550115
  Masterton3,270586
  Wairarapa South2,890440
  Featherston3,710952
    Totals446,53043,719
South Island—  
  Sounds990507
  Marlborough8,3201,897
  Awatere1,4901,030
  Kaikoura2,920906
  Amuri2,4502,285
  Cheviot1,290327
  Waimea12,7501,537
  Takaka1,860458
  Collingwood1,010552
  Buller5,2401,885
  Murchison1,3001,372
  Inangahua3,510942
  Grey4,9901,579
  Westland4,6104,410
  Waipara2,440937
  Kowai1,820157
  Ashley620309
  Rangiora3,03096
  Eyre1,750175
  Oxford1,540318
  Tawera630941
  Malvern3,400250
  Paparua8,020136
  Waimairi20,40048
  Heathcote6,12019
  Halswell2,25040
  Mount Herbert51066
  Akaroa1,470169
  Chatham Islands520372
  Wairewa920170
  Springs1,96091
  Ellesmere2,860230
  Selwyn1,510954
  Ashburton10,4502,459
  Geraldine6,450691
  Levels4,230263
  Mackenzie3,9702,739
  Waimate6,2001,383
  Waitaki9,5202,392
  Waihemo1,050338
  Waikouaiti3,470316
  Peninsula3,25040
  Taieri5,660902
  Bruce3,910520
  Clutha5,7701,025
  Tuapeka4,7701,388
  Maniatoto2,8201,340
  Vincent3,9302,922
  Lake1,3903,872
  Southland25,0703,724
  Wallace9,1603,727
  Fiord 3,035
  Stewart Island350670
    Totals224,92058,911
    Grand totals671,450102,630

Boroughs.—Similar information as in the case of counties is now given for boroughs.

Borough.Population (Including Maoris).Approximate Area, in Acres.
North Island—  
  Kaitaia1,6201,310
  Kaikohe1,2901,342
  Whangarei11,2003,504
  Dargaville2,6002,800
  Helensville1,1301,315
  Birkenhead4,3503,084
  Northcote2,9501,190
  Takapuna12,2002,780
  Devonport12,1501,100
  Henderson1,9601,265
  New Lynn5,5501,393
  Auckland (City)143,30018,253
  Mount Albert27,2002,430
  Mount Eden22,0001,476
  Newmarket3,060182
  Ellerslie3,460745
  One Tree Hill14,1002,430
  Mount Roskill18,8004,605
  Onehunga16,2501,876
  Otahuhu8,3901,345
  Papatoetoe6,8201,587
  Manurewa2,5001,960
  Papakura2,7702,010
  Pukekohe3,8503,470
  Huntly3,8101,678
  Ngaruawahia1,9001,112
  Hamilton (City)29,7005,705
  Cambridge2,8901,280
  Te Awamutu3,5001,162
  Te Kuiti3,0301,668
  Taumarunui3,0001,925
  Thames4,5602,712
  Paeroa2,5001,419
  Waihi3,8804,094
  Te Aroha2,6402,783
  Morrinsville2,510950
  Matamata1,980934
  Putaruru1,520975
  Mount Maunganui1,480935
  Tauranga6,8102,748
  Te Puke1,3001,047
  Rotorua9,6103,611
  Whakatane3,3201,539
  Opotiki1,800772
  Gisborne16,8503,378
  Wairoa3,1801,603
  Napier (City)20,0502,456
  Hastings17,6002,612
  Waipawa1,2401,710
  Waipukurau2,340971
  Dannevirke4,6901,300
  Woodville1,1901,054
  Waitara2,7701,587
  New Plymouth (City)21,5004,132
  Inglewood1,390703
  Opunake1,000676
  Stratford4,1902,016
  Eltham1,9701,599
  Hawera5,390897
  Patea1,6201,420
  Ohakune1,5202,079
  Raetihi1,160958
  Wanganui (City)26,0005,726
  Taihape2,3601,923
  Marton3,2201,415
  Feilding5,5702,031
  Foxton1,890757
  Palmerston N. (City)30,5006,839
  Shannon1,000844
  Levin1,2001,332
  Otaki2,3601,390
  Upper Hutt7,2302,165
  Lower Hutt (City)43,3007,688
  Petone11,7001,132
  Eastbourne2,7101,546
  Wellington (City)135,60016,289
  Pahiatua1,890720
  Eketahuna710948
  Masterton10,9503,002
  Carterton2,0901,265
  Greytown1,2301,927
  Featherston1,040759
  Martin borough9501,070
    Totals827,390194,420
South Island—  
  Picton1,7501,052
  Blenheim6,8101,640
  Nelson (City)16,5505,550
  Richmond1,7002,600
  Motueka2,2002,523
  Westport5,410760
  Runanga1,8701,186
  Greymouth9,1102,522
  Brunner1,0905,700
  Kumara410842
  Hokitika3,000674
  Ross4503,800
  Rangiora2,630877
  Kaiapoi2,050877
  Riccarton8,680728
  Christchurch (City)128,90016,788
  Lyttelton3,4402,560
  Akaroa540233
  Ashburton8,6301,860
  Geraldine970566
  Temuka2,200795
  Timaru (City)20,9002,895
  Waimate2,820771
  Oamaru8,3301,386
  Hampden230630
  Palmerston770900
  Waikouaiti6401,958
  Port Chalmers2,740490
  West Harbour2,1502,382
  Dunedin (City)72,10013,536
  St. Kilda7,700462
  Green Island3,230877
  Mosgiel2,630965
  Milton1,580315
  Kaitangata1,3701,280
  Balclutha2,3801,000
  Tapanui290129
  Lawrence580615
  Roxburgh580515
  Naseby150112
  Alexandra1,220815
  Cromwell770806
  Arrowtown190457
  Queenstown950270
  Gore5,4001,940
  Mataura1,6501,272
  Winton1,070505
  Invercargill (City)26,7006,399
  South Invercargill1,2302,257
  Bluff2,2202,111
  Riverton950718
    Totals381,910102,901
    Grand totals1,209,300297,321

Town Districts.—As stated earlier, the population of independent town districts—i.e., those contained in section (a) of the following table—is not included with that of the counties in which the town districts are located, but the population of dependent town districts—section (b)—is included in that of the respective parent county.

Town District.Population (Including Maoris).Approximate Area, in Acres.

* Parent county shown in parentheses.

(a) Town Districts Not Forming Parts of Counties
North Island—  
  Hikurangi1,070960
  Kamo650852
  Warkworth6701,420
  Glen Eden2,1001,267
  Howick1,7201,091
  Waiuku1,0601,275
  Tuakau1,0001,265
  Leamington7301,330
  Otorohanga1,420560
  Manunui7601,251
  Taupo9802,290
  Taradale2,1401,469
  Havelock North1,730835
  Ohura480815
  Manaia660510
  Waverley830484
  Mangaweka290955
  Hunterville530791
  Bulls650677
  Johnsonville3,300842
    Totals22,77020,939
South Island—  
  Takaka540585
  Leeston660391
  Tinwald7101,525
  Pleasant Point500730
  Wyndham550680
  Lumsden4901,264
  Nightcaps620285
  Otautau640954
    Totals4,7106,414
    Grand totals27,48027,353
(b) Town Districts Forming Parts of Counties*
North Island—  
  Kohukohu (Hokianga)2501,020
  Rawene (Hokianga)450280
  Russell (Bay of Islands)5201,066
  Kawakawa (Bay of Islands)660280
  Onerahi (Whangarei)570990
  Mercer (Franklin)3001,000
  Te Kauwhata (Waikato)5101,290
  Ohaupo (Waipa)2501,283
  Kihikihi (Waipa)420523
  Kawhia (Kawhia)290470
  Te Karaka (Waikohu)390700
  Patutahi (Cook)2001,275
  Kaponga (Eltham)400558
  Normanby (Hawera)320260
    Totals5,53010,995
South Island—  
  Havelock (Marlborough)240210
  Southbridge (Ellesmere)390531
  Outram (Taieri)360886
  Edendale (Southland)470696
    Totals1,4602,323
    Grand totals6,99013,318

Extra-county Islands and Migratory Population.—In addition to the populations quoted for administrative counties, cities and boroughs, and independent town districts, the New Zealand totals include migratory population and persons located on islands not within the boundaries of any county. The two latter categories comprised an estimated 5,890 people at the 1st April, 1950.

Of the islands concerned, Waiheke was the only one with a reasonably sized population, which was estimated at 1,250 for 1st April, 1950.

AGE DISTRIBUTION.—The following table shows the estimated age distribution of the population at 31st December, 1949. The figures are based on the 1945 census data and brought up to date from statistics of births, ages of persons dying, and ages of persons arriving in or departing from New Zealand. (Data for 1945 census will be found elsewhere in this section.)

Age-group (Years).Excluding Maoris.Maoris.
Males.Females.Totals.Males.Females.Totals.
Under 5105,853101,202207,05511,40410,84622,250
5–981,40078,300159,7008,1507,82515,975
10–1464,70063,000127,7007,6507,37515,025
15–1962,20059,300121,5006,5506,37512,925
20–2468,20064,200132,4004,9254,8759,800
25–2967,20068,700135,9004,2004,1008,300
30–3463,80065,100128,9003,4003,4006,800
35–3966,10064,700130,8003,0252,7255,750
40–4461,70059,300121,0002,6752,3755,050
45–4954,20051,700105,9001,9751,7003,675
50–5444,40046,80091,2001,7001,3753,075
55–5938,60041,80080,4001,0507751,825
60–6438,50039,90078,4001,0007751,775
65–6933,80034,90068,7007005501,250
70–7424,30026,40050,700500450950
75 and over21,90025,40047,300350325675
Totals, under 14240,000231,100471,10025,80024,70050,500
Totals, under 16264,100253,800517,90028,60027,30055,900
Totals, under 21327,300314,400641,70034,90033,50068,400
Totals, 21 and over569,553576,3021,145,85524,35422,34646,700
    Total population896,853890,7021,787,55559,25455,846115,100

DENSITY OF POPULATION.—The total area of New Zealand is approximately 103,939 square miles. Omitting the Island Territories of Tokelau Islands, Cook Islands, and Niue Island, the area remaining is 103,736 square miles, and includes Kermadec Islands and Campbell Island, and certain uninhabited Islands—viz., Three Kings, Solander, Bounty, Snares, Antipodes, and Auckland. This calculation, it should be explained, includes all inland waters—i.e., lakes, rivers, harbours, estuaries, &c. It should be noted also that there is a great deal of high mountainous country in New Zealand, particularly in the South Island, while there are also large areas of broken, swampy, or hilly country which is either incapable of effective use or which can be used profitably only for pastoral purposes, afforestation, or the like.

The density of population at the 1945 census may be quoted as 16.41 persons to the square mile. This figure would he higher if members of the Armed Forces serving overseas were included in the population.

The area and population of individual towns and counties will be found in preceding tables in this section. At the 1945 census, density of population in the various provincial districts was:—

 Persons per Square Mile.
Auckland25.22
Hawke's Bay18.56
Taranaki20.49
Wellington32.14
Marlborough4.91
Nelson5.26
Westland3.49
Canterbury17.71
Otago—Otago10.25
Southland6.11

Attention must be drawn to the necessity for the exorcise of discretion in the use of data concerning density of population, particularly in comparing one country with another. Areas may be calculated in many ways, while area itself may have little relationship to potentiality of use. In the case of urban population, it is impossible to obtain the aggregate area of sites actually in occupation by business premises, residences, &c. Many boroughs contain within their boundaries large reserves which, with farming and other unbuilt-on land, tend to disguise the actual relation of population to area.

MAORI POPULATION.—A record of early statistics of Maoris is given in Vol. III of the 1936 Census Results, The first official general census was taken in 1857–58, and others occurred in regular sequence from 1874 onwards. Owing to inherent difficulties the earlier census records make no pretence towards complete accuracy, and even some later enumerations hardly claim to be more than approximations.

Available statistical evidence points to a decline in the numbers of the Maori race following the advent of Europeans, but this decline was commonly exaggerated by early writers. Of later years an unmistakable and now fairly rapid increase has been noted. This gain, however, has been accompanied by a very considerable dilution of blood.

The latest Maori population figure available at the 1st April, 1950, is 116,034, which is an increase of 3,365 on the total for the previous year.

The census record of Maori population is given below:—

Year.Maori Population.Numerical Increase.Percentage Increase.

NOTE.—Minus sign (-) denotes a decrease.

* Includes members of Armed Forces overseas at census date.

1857–5856,049  
187447,330−8,719−15.6
187845,542−1,788−3.8
188146,1415991.3
188643,927−2,214−4.8
189144,1772500.6
189642,113−2,064−4.7
190145,5493,4368.2
190650,3094,76010.5
191152,7232,4144.8
191652,9972740.5
192156,9873,9907.5
192663,6706,68311.7
193682,32618,65629.3
194598,74416,41819.9
1945*100,04417,71821.5

The percentage increase from 1936 to 1945 was 19.94, equivalent to an average annual increase of 1.93 per cent. These percentages, it will be noted, are considerably higher than the corresponding figures for the European population—viz., 7.51 per cent. and 0.77 per cent. Movements of troops have tended to invalidate this comparison; the natural increase ratios for the year 1949–50 afford a better illustration. These are:—

 European.Maori.
Birth-rate24.8243.40
Death-rate9.1813.75
Natural-increase rate15.6429.65

Of the 116,034 Maoris at 1st April, 1950, 112,382 were in the North Island. Auckland Provincial District contains the bulk of the Maoris, particularly in the Auckland Peninsula and Poverty Bay regions. In the South Island, Maoris do not attain any numerical significance.

The records of the 1936 and 1945 censuses permit of a statement of the total numbers wholly or partly of Maori blood.

Counted in the Maori population—  
 1936.1945.
Full Maori55,91561,440
Maori-Europeans—  
  Three-quarter caste11,39718,956
  Half-caste14,89118,348
  Degree not specified123 
    Totals82,32698,744
Counted in the population other than Maori—  
 1936.1945.
Maori-European quarter-caste11,50816,902
Maori-Polynesian102263
Maori-Japanese920
Maori-Chinese38198
Maori-Indian41134
Maori-Syrian2657
Maori-American Indian328
Maori-Negro 19
Maori-Filipino 8
Maori-West Indian 11
Maori-Melanesian 10
    Totals11,72717,650

In 1945 there were recorded in New Zealand some 116,394 persons wholly or partly of Maori origin, compared with 94,053 in 1936.

STATISTICS OF 1945 CENSUS.—The tabulation and analyses of the population census taken for the night of 25th September, 1945, has met with delay through staff shortage and other causes. Further and considerable delay in presentation of completed results has arisen from the difficulties of the printing trade. The following volumes of census results have been published, or are in the press:—

  • Volume I—Increase and Location of Population.

  • Volume II—Island Territories (Cook Islands and Nine, Tokelau Islands, and Western Samoa).

  • Volume III—Maori Census.

  • Volume IV—Ages and Marital Status.

  • Volume VIII—Race.

  • Volume IX—Industries and Occupations.

  • Volume X—Incomes.

  • Appendix A—Census of Poultry.

  • Appendix B—War Service.

Interim Returns (Ages, Marital Status, Religious Professions. Birthplaces, Duration of Residence of Overseas-born, Race, War Service, Industries, Occupations, Occupational Status, and Travelling Time).

Most of the data to be covered by further volumes of census results is available and certain details are included in the summaries given below. In addition certain other figures will be found in this issue in the appropriate sections—viz., population of island territories (Section 46); statistics of poultry (Section 18c); industrial and occupational distribution (Section 40); incomes (Section 36); hours of work and travelling-time (Section 38); and dwellings (Section 23).

In view of the abnormalities to be expected in a country which had been engaged for a number of years in war, it would seem desirable to refer briefly to the scope of any census which was held so shortly after the cessation of active hostilities. In the 1945 census the following categories of people were excluded from the enumeration:—

  1. 45,381 members of the New Zealand Forces overseas at census date, this figure comprising 43,415 male and 666 female Europeans, the remaining 1,300 being Maoris.

  2. Members of the United States of America Forces in New Zealand totalling 250.

  3. Enemy prisoners of war, 803 in number.

On the other hand, refugees and internees were included in the enumeration.

Ages.—The age-distribution of the population as disclosed at the censuses of 1936 and 1945 is now given.

Age-group (Years).1936 Census.1945 Census.
Males.Females.Total.Males.Females.Total.
European Population
Under 559,82456,914116,73882,66279,493162,155
5 and under 1065,57462,813128,38766,95865,310132,268
10 and under 1569,05566,261135,31660,80257,949118,751
15 and under 2067,37064,875132,24564,64463,264127,908
20 and under 2567,67565,865133,54046,53066,430112,960
25 and under 3063,72961,259124,98851,58864,740116,328
30 and under 3556,04253,468109,51058,05364,361122,414
35 and under 4050,71751,087101,80458,51559,930118,445
40 and under 4543,47947,57091,04953,31752,061105,378
45 and under 5046,23846,71692,95447,39648,58895,984
50 and under 5545,80343,52189,32440,53944,06484,603
55 and under 6040,95937,58078,53941,59741,92883,525
60 and under 6529,89027,92357,81338,96738,45477,421
65 and under 7021,69121,14542,83631,82632,33364,159
70 and under 7513,28813,54726,83519,88020,30940,189
75 and under 808,0267,97816,00411,51812,64824,166
80 and under 854,0803,9988,0784,8975,80210,699
85 and under 901,4691,5643,0331,8012,2234,024
90 and under 95333396729396543939
95 and under 10064751396594159
100 and over448448
Not specified—      
  Adults8726651,5376314061,037
  Minors443478161834
  Totals, Europeans756,226735,2581,491,484782,602820,9521,603,554
Age-group (Years).1936 Census.1945 Census.
Males.Females.Total.Males.Females.Total.
Maori Population
Under 57,1956,82914,0248,3308,04016,370
5 and under 106,3546,25112,6057,9727,68315,655
10 and under 155,2455,07710,3226,8286,62413,452
15 and under 204,1133,8717,9845,3635,26710,630
20 and under 254,0163,7857,8013,6934,2887,981
25 and under 303,3333,0196,3523,2003,5386,738
30 and under 352,2762,0214,2972,9902,9385,928
35 and under 402,2211,9764,1972,8092,5355,344
40 and under 451,6871,4433,1302,0221,8313,853
45 and under 501,6061,1822,7881,9381,5203,458
50 and under 551,2579732,2301,2691,0012,270
55 and under 609947321,7261,1438371,980
60 and under 657847691,5538797211,600
65 and under 707575831,3406885901,278
70 and under 75417361778402307709
75 and under 80250185435232184416
80 and under 85144138282113127240
85 and under 9066691354374117
90 and under 95314677283967
95 and under 100102636111627
100 and over5253031316
Not specified—      
  Adults5660116227192419
  Minors46428892104196
  Totals, Maoris42,86339,46382,32650,27548,46998,744

The estimated age-distribution of the population as at 31st December, 1949, will be found on page 38.

A noticeable feature of the European population is the movement of large numbers of people into the higher age-groups. Persons of 60 years of age and over increased between 1936 and 1945 by 66,289; in 1945 such persons comprised 13.83 per cent. of the total population; in 1936, 10.42 per cent.; in 1926, 7.84 per cent.; and in 1874 only 2.33 per cent.

At the other end of the scale, a marked reversal of the trend of the 1930's was recorded. Children under 10 years of age increased by 49,298 since 1936, in strong contrast to the decrease of 22,102 shown by that census over the corresponding age-group in 1926. Whether the improvement in the European birth-rate over the past few years and in the post-war period will be maintained as a long-term feature is a question that cannot be answered at this juncture.

The cumulative effect of the declining birth-rate since 1910 in its effect on those age-groups in winch the majority of the working population is contained is shown by the succeeding comparison. In the age-group covering ages 15 years to 59 years the 1936 figure recorded an increase of 119,179 over 1926. In 1945, even allowing for 44,081 European members of the New Zealand Forces overseas, the comparable increase has dropped to 57,673. Some part of this reduced number is, of course, due to reduced migration gains and to war losses. Nevertheless, it would seem that the present labour shortage must be in some measure the direct result of a smaller influx into working-age groups caused through decreases in births occurring over a very considerable period.

The European population in 1945 may be divided into adults (21 years and over) 1,037,469, equal to 64.70 per cent., and minors (under 21 years) 566,085, or 35.30 per cent. of the total. In 1936, adults comprised 63.84 per cent. and minors 36.16 per cent. of the total.

The outstanding characteristic of the rapidly increasing Maori race is its comparative youthfulness. The large number of persons under twenty-one years of age amounting to 58,066, constitutes 58.8 per cent. of the total, which is in sharp contrast to the figure of 35.3 per cent. for the corresponding European age-group. Further evidence of this feature is afforded by the much lower average age (arithmetic mean) of Maoris, 21.76 years as against the 32.94 years of the European section. This difference is accounted for by the higher natural increase associated with the Maoris, further accentuated by the probably greater expectation of life possessed by Europeans.

It is obvious that the changes noted in the above paragraphs impinge on the social economy in many ways. The recent increases in the number of children born are now beginning to exert their influence on school rolls, school-teachers, and indirectly on all those concerned with the needs of youth. Different classes of commodities and services are required for elderly people, too, and the census results are full of significance in this respect. The information disclosed on the quantity and age distribution of the economically active portion of the population also holds salient points of interest in many spheres of inquiry.

In the table given above, and indeed for most 1945 census results, the non-inclusion of 45,381 members of the Armed Forces overseas must be considered in any analysis of the figures. The estimated age distribution of the 44,081 Europeans and 1,300 Maoris comprising this total is given below.

Age-group (Years).Europeans.Maoris.Total.
Males.Females.Total.Males.Females.Total.Males.Females.Total.
Under 20610 610   610 610
20 and under 2518,69510618,801620 62019,31510619,421
25 and under 3011,57024011,810450 45012,02024012,260
30 and under 357,1502207,370130 1307,2802207,500
35 and under 403,740903,83080 803,820903,910
40 and under 451,370101,38020 201,390101,400
45 and under 50210 210   210 210
50 and under 5550 50   50 50
55 and under 6020 20   20 20
    Totals43,41566644,0811,300 1,30044,71566645,381

Marital Status.—The marital status of persons aged 16 years and over as returned at the census of 1945 is summarized in the following tables. The status is that existing at the census date—e.g., a person who had been widowed or divorced but had remarried before the census is counted as married, not as widowed or divorced.

Age (Years).Never Married.Married.Legally Separated.Widowed.Divorced.Not Specified.Total.
Europeans: Males
16 and under 2051,5222351  3851,796
20 and under 2111,4044384112611,874
21 and under 2526,5617,90610219333534,656
25 and under 3023,08227,6893841042963351,588
30 and under 3514,05642,5595342825626058,053
35 and under 409,21747,5315804367153658,515
40 and under 456,88144,4215546727563353,317
45 and under 505,86239,2714501,0187662947,396
50 and under 554,58433,4214081,4476592040,539
55 and under 604,93933,2414212,3356471441,597
60 and under 654,64629,7595043,4365932938,967
65 and under 703,97522,7613614,2634442231,826
70 and under 752,65112,7812094,0022271019,880
75 and under 801,4486,5381133,312101611,518
80 and under 855502,316321,9543874,897
85 and under 90202673149001021,801
90 and over49123228623465
Not specified, adults651284164414631
  Totals—1945171,694351,7914,67724,4835,854817559,316
        1936211,551304,9554,47221,5743,913763547,228
Europeans: Females
16 and under 2048,9021,84216111 50,772
20 and under 2110,9502,09624178 13,095
21 and under 2530,80021,725347293165553,335
25 and under 3018,15144,498732788565664,740
30 and under 3511,00750,8547431,022728764,361
35 and under 408,53048,5966781,272849559,930
40 and under 457,13641,6885921,837802652,061
45 and under 506,35237,7475773,128780448,588
50 and under 555,75332,5194884,584715544,064
55 and under 605,19228,6235186,969619741,928
60 and under 655,06223,2905059,105487538,454
65 and under 704,40216,56436810,651342632,333
70 and under 753,0458,1611588,790149620,309
75 and under 801,7783,531827,19954412,648
80 and under 857271,080103,9602235,802
85 and under 9021930131,691722,223
90 and over5073151052641
Not specified, adults612081060760406
  Totals—1945168,117363,3965,85261,8876,305133605,690
        1936175,230301,8024,93949,6623,490523535,646
Age (Years).Never Married.Married.Legally Separated.Widowed.Divorced.Not Specified.Total.
Maoris: Mules       
16 and under 204,06686 1 24,155
20 and under 217371041225851
21 and under 251,814998712292,842
25 and under 301,1291,98017551093,200
30 and under 355552,32222701652,990
35 and under 403382,326269811102,809
40 and under 451911,67317129842,022
45 and under 501511,559161871961,938
50 and under 558798751741151,269
55 and under 60788426208541,143
60 and under 6562567124432879
65 and under 70444222206410688
70 and under 752619717414402
75 and under 8011108210812232
80 and under 85733 70 3113
85 and under 90312224 243
90 and over514 23  42
Not specified, adults8593429115227
  Totals—19459,38914,3231281,814949725,845
        19368,26312,5872691,8286413823,149
Maoris: Females       
16 and under 203,52052817 24,058
20 and under 215393633331912
21 and under 251,3281,96318521143,376
25 and under 305222,856281081593,538
30 and under 352592,514301171262,938
35 and under 401632,2111912517 2,535
40 and under 45771,55420167941,831
45 and under 50451,2247230771,520
50 and under 553372810223521,001
55 and under 601855582533 837
60 and under 6521416327812721
66 and under 7020286128012590
70 and under 754110118912307
75 and under 80114211291 184
80 and under 85321 101 2127
85 and under 90214 58  74
90 and over112 58 374
Not specified, adults986112714192
  Totals—19456,66415,4581512,405875024,815
        19364,87813,0712412,158379120,476

Taking only the adult population—i.e., those aged 21 years and over—the proportional distribution of the population was—

Marital Status.Europeans.Maoris.
Males.Females.Mules.Females.
1936.1945.1936.1945.1936.1945.1936.1945.
 Per Cent.Per Cent.Per Cent.Per Cent.Per Cent.Per Cent.Per Cent.Per Cent.
Never married30.3521.9824.2819.9923.5222.1011.8313.16
Married63.4170.9563.3966.3665.1768.1273.6273.58
Legally separated0.930.941.041.071.400.611.380.74
Widowed4.494.9510.5511.429.588.7312.9612.10
Divorced0.821.180.741.160.330.440.210.42
    Totals100.0100.0100.0100.0100.0100.0100.0100.0

The influence of the recent war on the never-married and married figures is well illustrated in this table. Many single men were overseas in 1945, thereby reducing the proportion of this class in the latter year and enhancing at the same time the proportion of married men. Increases in the proportions of married women and widows in the European section of the population can, no doubt, be also ascribed to war conditions, while higher wartime marriage-rates are reflected in a lower proportion of single women.

Religious Professions.—The table following presents a summary of the religious professions of the population as recorded in 1945, together with comparative figures for 1936. The figures are exclusive of Maoris, who are shown on the page following.

Religious Profession.Adherents.
1936.1945.
Church of England600,786601,786
Presbyterian367,855374,956
Roman Catholic (including Catholic undefined)195,261215,629
Methodist121,012130,220
Baptist24,70327,512
Brethren17,26018,629
Salvation Army12,60813,203
Protestant (undefined)5,17811,911
Church of Christ11,19711,346
Spiritualist1,201763
Hindu591661
Confucian778638
Apostolic390636
Jehovah's Witness428622
Eastern Orthodox Catholic361595
Society of Friends494546
Pentecostal490440
Unitarian669417
Theosophist457409
Congregational7,1796,403
Seventh Day Adventist3,8254,956
Christian Scientist4,6174,819
Christian (undefined)1,6893,671
Hebrew2,6533,470
Freethinker9253,089
Rationalist2,0662,883
Lutheran2,5372,140
Undenominational Christian1,2891,692
Atheist5991,654
Agnostic1,4991,544
Christadelphian1,3031,367
Latter Day Saints (Mormon)7451,247
Missions (undefined)1,346891
Ratana461764
Commonwealth Covenant Church 763
Nonconformist295396
Assemblies of God389361
Uncertain103341
Liberal Catholic274334
Friendly Road598258
Evangelical301196
British Israel704158
Catholic Apostolic347137
Christian Assembly 134
Chinese Church27115
Undenominational1,5421,497
No religion (so returned)4,29211,038
All other religious professions2,1531,801
Object to state71,302126,426
Not specified14,7058,090
    Totals1,491,4841,603,554

The category recorded as “Object to state” represents those persons availing themselves of the special statutory right of objecting to answer a question on this subject. A proportion of the “not specified” may also consist of persons objecting to the question.

The proportional distribution at the last two censuses was:—

Religious Profession.Percentage of Total Population.
1936.1945.
Church of England40.2837.53
Presbyterian24.6623.38
Roman Catholic (including Catholic undefined)13.0913.45
Methodist8.118.12
Baptist1.661.72
Brethren1.151.16
Salvation Army0.840.82
Protestant, undefined0.350.74
Church of Christ0.750.71
No religion (so returned)0.290.69
Object to state4.787.88
All others (including “not specified”)1.043.80
    Totals100.00100.00

The numbers and proportional distribution of religious professions of Maoris at the last two censuses are now given. In comparison with the European distribution shown earlier some considerable differences will be noted, caused partly by the inclusion of religious professions such as Ratana, Ringatu, and Hau Hau, which are essentially Maori.

Religious Profession.1936 Census.1945 Census.
Numbers.Percentage.Numbers.Percentage.
Church of England24,83230.1632,57832.99
Ratana16,33719.8417,18117.40
Roman Catholic11,32613.7615,19015.38
Methodist5,7436.987,5357.63
Latter Day Saints5,2576.396,5516.63
Ringatu5,0916.185,1665.23
Mission n.o.d.5,0476.132,0912.12
Presbyterian1,1151.361,6461.67
Hau Hau5860.716620.67
Other professions1,5111.841,8551.88
Not specified or indefinitely specified1,2461.511,2841.30
Object to state4,2355.147,0057.10
    Total Maori population82,326100.0098,744100.00

Birthplaces.—The distribution of the population in 1945 according to place of birth is now presented, with 1936 figures being incorporated for comparative purposes.

The nomenclature used in regard to countries of birth refers to status and territories in the census year and not necessarily to the present position.

Birthplace.Census.
1936.1945.

* Includes protectorates, trust territories, &c., as at the date of the census.

British Countries*  
  New Zealand1,197,5911,357,323
  England140,422114,508
  United Kingdom, or Great Britain, n.o.d.476219
  Isle of Man490362
  Channel Islands906622
  Wales3,6383,911
  Scotland54,18843,818
  Northern Ireland1,7889,024
  Eire7477,249
  Ireland, n.o.d.23,3302,342
  Gibraltar5442
  Malta, Gozo, and Comino8164
  Union of South Africa1,3211,223
  Cyprus1751
  India (British or Native States)2,1942,096
  Ceylon149118
  Burma3056
  Malaya132194
  Hong Kong4094
  Canada1,6251,738
  Australia42,00936,789
  Cook Islands157393
  Niue Island54222
  Western Samoa279592
  Fiji8191,173
  Tonga269433
  Norfolk Island113128
  Other British Pacific islands53115
  All other British countries355318
  Totals, British1,473,3271,585,217
Foreign, Countries  
  Norway650508
  Sweden723478
  Denmark1,4431,039
  Russia (U.S.S.R.)391348
  Estonia2845
  Latvia6465
  Lithuania2024
  Finland239188
  Poland3661,307
  Germany1, 2991,297
  Netherlands124128
  Belgium137114
  Prance368303
  Switzerland636599
  Italy917840
  Czechoslovakia72166
  Austria140342
  Hungary34112
  Yugoslavia2,7213,090
  Greece192260
  Egypt4972
  Syria354153
  Lebanon 156
  China2,1843,150
  Japan10648
  United States of America1,2101,079
  America, n.o.d.292159
  Argentina8285
  Society Islands6571
  All other foreign countries442493
    Totals, foreign countries15,34816,719
Born at sea749570
Not specified2,0601,048
    Grand totals1,491,4841,603,554

The chief points of interest emerging from a scrutiny of this table can be briefly given. Declines in the numbers of persons born in British countries other than the Pacific islands are fairly general. Reduced immigration in the depression period and subsequent years, together with gradual elimination by death or emigration of the older residents born overseas, with the additional complication of war movements, doubtless account for this state of affairs. Improved transportation facilities and war conditions to some extent explain the increases shown of those born in the neighbouring Pacific islands.

The distribution of the movement of the foreign-born element since 1936 is of interest, in that it reflects the influence of pre-war European conditions and the impact of war. For example, those born in northern European countries declined, probably more directly as the result of the war. Central European countries exhibit the same characteristic, except in the case of those countries from which political and war refugees were drawn, particularly Poland, Czechoslovakia, and Austria, in which increases were recorded.

Duration of Residence of Overseas-born.—Persons born elsewhere than in New Zealand are now classified by their duration of residence in thin country.

Duration of Residence.Census.
1936.1945.
Under 1 year4,6093,777
1 year1,8791,835
2 years1,254577
3 years1,044778
4 years1,333955
5 years2,9142,315
6 years3,7764,958
7 years3,6242,994
8 years5,0002,362
9 years9,3481,516
10 years12,0701,320
11 years9,732848
12 years9,831987
13 years7,548840
14 years9,5341,748
15 years11,6713,437
16 years8,9363,320
17 years3,2093,690
18 years1,5606,243
19 years1,3019,299
20 and under 25 years36,37943,565
25 and under 30 years39,22119,711
30 and under 35 years25,12135,684
35 and under 40 years10,83330,901
40 and under 45 years9,37918,473
45 and under 50 years6,6306,934
50 and under 55 years12,8646,567
55 and under 60 years12,2274,057
60 and under 65 years16,0527,160
65 and under 70 years3,0956,486
70 and under 75 years4,4116,884
75 and under 80 years1,5271,015
80 and under 85 years3801,209
85 and under 90 years70212
90 and over1445
Not specified5,5173,529
Totals293,893246,231

This table is a very graphic one. It conveys a picture of broad economic and political changes in the history of New Zealand made manifest by the movement of immigration. Thus the small numbers shown for the years 2–4 are symptomatic of the Second World War disturbances; the larger numbers over years 6–8 are in response to the stimulus given to migration by the economic recovery following the depression of the mid “thirties”; while the 11–13 years duration reflect slump conditions and the voluntary restriction on immigration entailed by such conditions. This analysis can be carried further, for the 25–30 years' duration illustrates the effects of the First World War and post-war circumstances. The severe depression of the early 1890's is responsible for the drop recorded in the 55–60 years group, while the public-works policy of 1870 onwards accounts for the larger numbers in the 65–75 years duration group. The table thus affords a general conspectus of economic history in quantitative form.

Racial Origins.—It is definitely impossible to obtain from census data an accurate ethnological survey of the racial origins of the population. For example, such terms as “European” or “Indian” cover in reality a variety of races. Nevertheless, the general meaning of the terms employed will be clear and the data afforded are of distinct service. The following summary gives data for the 1945 census, together with the 1936 figures by way of comparison.

Race.Census.
1936.1945.
European—  
  European1,473,0001,575,974
  European-Maori quarter-caste11,50816,902
      Totals, European1,484,5081,592,876
Maori—  
  Full Maori55,91561,440
  Three-quarter caste11,39718,956
  Half-caste14,89118,348
  Maori-European n.o.d.123 
      Totals, Maori82,32698,744
Race alien—  
  Chinese F. B.2,5804,373
            M.B.319359
  Chinese-Maori38198
  Chinese-Polynesian210
            F.B.960895
  Syrian M.B.275438
  Syrian-Maori2657
            F.B.8651,116
  Indian M.B.292299
  Indian-Maori41134
  Japanese F.B.7211
            M.B.3012
  Japanese-Maori920
  Sinhalese F.B.42
  M.B.195
  Eurasian n.o.d.145
  Polynesian—  
            F.B.54
  Hawaiian M.B.1736
            F.B.396O
  Samoan M.B.323656
  Tahitian F.B.516
            M.B.2061
  Niue Islander F.B. 165
            M.B. 60
            F.B.53222
  Cook Island Maori  
            M.B.50132
  Polynesian-Maori102263
            F.B.6190
  Other or undefined M.B.313394
  Melanesian—  
  Fijian F.B.2320
            M.B.86164
            F.B.26
  Other or undefined M.B.518
            F.B.2717
  Negro M.B.12385
  Negro-Maori 19
  West Indian M.B.911
  West Indian-Maori3245
            F.B.13
  American Indian M.B.2215
  American Indian-Maori328
            F.B.12
  Abyssinian M.B.1518
  Egyptian311
  Armenian118
  Half-caste, race not specified22 
            F.B.3233
  Other race aliens M.B.3561
      Totals, race aliens6,97610,678
      Grand totals1,573,8101,702,298

NOTE.—F.B. signifies “full blood”; M.B. “mixed blood,” the second race being European.

Of the total population in 1945, Europeans comprised 1,592,876 (93.57 per cent.); Maoris, 98,744 (5.80 per cent.); and race aliens, 10,678 (0.63 per cent.). Corresponding figures for 1936 were: Europeans, 1,484,508 (94.33 per cent.); Maoris, 82,326 (5.23 per cent.); and race aliens, 6,976 (0.44 per cent.). The relative rate of increase between 1936 and 1945 was: Europeans, 7.30 per cent.; Maoris, 19.94 per cent.; and race aliens, 53.07 per cent.

In the race-alien division there was a fairly substantial increase in the number of Chinese, principally per medium of immigration. Other considerable, increases occur in the Samoan and Cook Island Maori racial components.

Overseas War Service.—The following tables record the number of those persons at the 1936 and 1945 censuses who gave the relevant particulars of overseas war service. It must be appreciated that at the date of the 1945 census there were 45,381 (inclusive of 666 females and 1,300 Maori males) members of the Armed Forces still overseas.

In the 1936 census tabulation, service in only one war was taken into account. In those instances in which individuals had seen service in two or more wars, the latest period of service was selected, the distinction being therefore between service in the First World War and service in all other wars. The table records the number of separate individuals participating in wars.

WAR SERVICE: NUMBERS, 1936 CENSUS

Force with which served.World War I.Wars other than World War I.Total.
Males.Females.Total.Males.Females.Total.Males.Females.Total.
Europeans
New Zealand68,97255369,5252,53762,54371,50955972,068
Australian1,592511,643253 2531,845511,896
Imperial14,8101,03415,8441,131121,14315,9411,04616,987
Other British423542812411255476553
Totals85,7971,64387,4404,045194,06489,8421,66291,504
Maoris
New Zealand1,53341,5378 81,54141,545
Australian3 3   3 3
Imperial1 1   1 1
Totals.1,53741,5418 81,54541,549

The table now presented dealing with the 1945 census refers to the number of separate persons with overseas service in one or more of the three major wars. However, each war or each combination of wars has been recorded separately.

WAR SERVICE: NUMBERS, 1945 CENSUS

Wars.Europeans.Maoris.
Males.Females.Total.Males.Females.Total.
Overseas service—      
  Only in World War II77,7951,32279,1171,817251,842
  Only in World War I69,5371,43670,9731,14081,148
  Only in South African War3,446293,475   
  In World War II and World War I2,318122,33040141
  In World War I and South African War1,62671,633   
  In World War II and South African War3 3   
  In World War II, World War I, and South African War22 22   
    Total with overseas war service154,7472,806157,5532,997343,031

The Maori questionnaire did not provide for service in the South African War, but it is understood that no Maoris participated therein.

As the classification in the table following is by wars and forces and not by separate individuals, the total numbers will exceed those given in the preceding table. This derives from the fact that those persons with overseas service in more than one war will appeal in the table below more than once—i.e., under the appropriate ware in which they participated. Maoris are omitted from the table, as information regarding forces was not asked in 1945.

WAR SERVICE: WARS AND FORCES WITH WHICH SERVED, 1945 CENSUS: EUROPEANS.

Forces with which served.World War II.World War I.South African War.
Males.Females.Males.Females.Males.Females.
New Zealand Forces78,9431,05958,8525732,89914
Australian Forces143271,369473202
Imperial Forces79221312,6598001,64018
Other British Forces553440972152
New Zealand and Australian Forces17 2823 
New Zealand and Canadian Forces9 7 3 
New Zealand and Imperial Forces1711159258 
New Zealand and other British Forces3 4 1 
Australian and Imperial Forces4 1115 
Australian and other British Forces    3 
Imperial and other British Forces1 5   
    Totals80,1381,33473,5031,4555,09736

Chapter 4. SECTION 4—VITAL STATISTICS

4 A—BIRTHS

REGISTRATION.—An ordinance which came into force from 1st January, 1848, made provision for a Government record of births and deaths. While this Ordinance-did not precisely make registration of births compulsory, it did make notification of births compulsory and also required registration particulars to be furnished on request made by a Deputy Registrar. Under its provisions many registrations were made, some of births us early as 1840. However, for some years (certainly until 1854 and possibly a year or so later) the requirements of the Ordinance were not fully known or appreciated, and it cannot be said to have been completely enforced during this period. The Registration Act, 1858, operative from 1st January, 1859, provided for compulsory registration of births. Registration of stillbirths, previously not provided for, was made compulsory from the 1st March, 1913.

The law as to registration of births is now embodied in the Births and Deaths-Registration Act, 1924, a consolidation of the then existing legislation. The provisions generally as to registration are that a birth may be registered within, sixty-two days without fee. After sixty-two days and within six months a birth is registrable only after a statutory declaration, of the particulars required to be registered, has been made before the Registrar by the parent or some person present at birth and on payment of a fee of 5s. When six months have elapsed, and a conviction for neglect to register has been entered against the persons-responsible, a birth may be registered with a Registrar of Births within one month after conviction, and in this case no fee is payable. An information for such neglect must be laid within two years of date of birth.

Notwithstanding the foregoing provisions, power is given by the Act of 1924 for the Registrar-General to register an unregistered birth which occurred in New-Zealand, irrespective of the time that may have elapsed. Satisfactory evidence on oath, and such other proof as the Registrar-General may deem necessary, are required, together with the payment of a foe of 5s. This provision does not, however, relieve any person from liability to prosecution for failure to register in the proper manner.

Although sixty-two days are allowed for the registration of a birth, it is compulsory to notify the birth to the Registrar within a much shorter interval—viz., forty-eight hours if in a city or borough and twenty-one days in every other case.

Particulars now required to be registered are: date and place of birth; name and sex of child; names, ages, and birthplaces of parents; occupation of father; maiden name of mother; date and place of parents' marriage; and ages and sex of previous issue (distinguishing living and dead) of the marriage. The father of an illegitimate child is not required to give information, nor is his name entered in the register unless at the joint request of the mother and himself, or unless he subsequently marries the mother (see pp. 63–64). A child born out of New Zealand but, arriving before attaining the age of eighteen months may be registered within six months of arrival.

Birth statistics are compiled from the records of the Registrar-General. The births covered by a year's statistics are those registered during the year irrespective of the year of birth. The figures do not include still-births, except in the special classification on page 65.

Registration of Maori Births.—In the successive Registration Acts special provision was made for exemption from the necessity of registration in the case of births and deaths of Maoris, though registration could be effected if desired. Section 20 of the Births and Deaths Registration Amendment Act, 1912 (now section 60 of the Births and Deaths Registration Act, 1924), empowered the making of regulations to provide for the registration of births and deaths of Maoris. Regulations were made accordingly, and Maori births and deaths became registrable as from the 1st March, 1913.

The number of Registrars of Maori Births and Deaths is over 250, most of these being in the North Island, where the great majority of the Maori population is located. Every Maori settlement of any size is within easy reach of one of these Registrars. Maori registrations are entered in a separate register, and the figures of births given in the following pages do not include those of Maoris, which are dealt with in Subsection D.

NUMBERS AND RATES.—The general long-term history of the birth-rate in New Zealand has been downward. A reference to the diagram on page 56 and to the table on page 55, showing quinquennial average birth-rates, indicates this trend very clearly. After the pioneering days of the nineteenth century, when the population consisted very largely of young immigrants faced with the raising of a family, the birth-rate began to decline appreciably. A further migration wave at the turn of the century reversed the trend temporarily, but in 1909 the downward movement was again resumed. With minor fluctuations in the earlier stages and in the years influenced by the First World War this decline continued until 1936. En that year a slight upward movement began, and by 1940 some of the deficit had been made up by the gradual rise. This was accelerated during the Second World War (with minor fluctuations) until successive record high totals (as regards the numbers of births) were established in 1945–47. In 1948 a decline in births was shown with a further recession in 1949. The decreases were not large, but it seems that the trend is once more downward. The numbers and rates of births (children born alive) for each of the last twenty years are given in the following table.

Year.Number.Rate per 1,000 of Population.
193026,79718.83
193126,62218.45
193224,88417.12
193324,33416.63
193424,32216.51
193523,96516.17
193624,83716.64
193726,01417.29
193827,24917.93
193928,83318.73
194032,77121.19
194135,10022.81
194233,57421.73
194330,31119.70
194433,59921.59
194537,00723.22
194641,87125.24
194744,81626.42
194844,19325.52
194943,98824.88

Much of the movement in the birth-rate during recent years has been allied to movement in the marriage-rate.

During the depression years there was a cessation of the normal annual increase in the number of marriages expected in a growing country, and correspondingly the first-birth rate remained at a low figure.

When the country emerged from the depression the effect of postponed marriages and child-bearing manifested itself immediately, and the first-birth rate rose rapidly. Again added impetus was given to this rate during the early war years, when, for obvious reasons, there was a decided rise in the marriage-rate. As the war proceeded the number of marriages declined somewhat, with a marked effect on the first-birth rate. With the end of hostilities and the release of men from the Forces the number of births rose rapidly, with first births the major factor in this increase.

As may be expected, the movement in the birth-rate reflects the tendency for couples to marry and have children in prosperous years rather than in years of depression. An analysis of birth-rates by order of births shows that up to the fourth child birth-rates fluctuate in accordance with this general trend; from the fifth to the seventh child some sympathetic movement is noticeable, but in such cases the extent of recovery has usually been less than the downward range evident in adverse years, indicative of an overall decline in the larger-sized families; the birth-rate for the eighth (or more) child has exhibited a definitely continuous decline over the period 1921–49, being apparently unaffected by economic cyclical changes and has in effect been maintained at a stable rate since 1938. It should be mentioned that these latter remarks apply to a period at the end of which the total birth-rate for women in the reproductive age groups was higher than at the commencement.

Comparisons of birth-rates over a series of years or between different countries are usually made on the basis of the “crude” rates—i.e., the number of births per 1,000 of the mean population, irrespective of sex or age.

The “crude” rates do not permit of allowance being made for variations in the proportion of women of the child-bearing ages, and it is advisable and of interest to supplement the table of “crude” rates with a computation of the legitimate birth-rate per 1,000 married women of 15 and under 45 years of ago, or the total birth-rate per 1,000 of all women of these ages. The following table gives both rates for New Zealand in each census year from 1878 to 1945.

Year.Number of Women 15 and under 45.Number of Births.Birth-rate per 1,000 Women 15 and under 45.
Married.Total.Legitimate.Total.Legitimate.*Total.

* Per thousand married women.

187850,99980,31317,34117,770340.0221.3
188157,46196,14418,19818,732315.0194.8
188662,709117,89518,69719,299298.2163.7
189163,172131,27117,63518,273279.2139.2
189669,816158,21417,77818,612254.6117.6
190179,420183,38719,55420,491246.2111.7
190698,249212,59823,12024,252235.3114.1
1911119,390240,71425,27626,354211.7109.5
1916141,322267,30027,36328,509193.6106.7
1921150,400288,47727,30928,567181.699.0
1926161,737313,36327,00028,473166.990.9
1936173,557344,12423,71124,837136.672.2
1945211,299370,78635,18337,007166.599.8

The legitimate rate per 1,000 married women between the ages of 15 and 45 is seen to have fallen by 51 per cent. between 1878 and 1945, while an even greater fall is shown for the total rate on the basis of all women of the ages mentioned. The greater fall in the latter rate than in the former is due to the fact that among women of the child-bearing ages the proportion of married women is considerably smaller than in the earlier years covered.

A study of the figures for successive censuses reveals considerable changes in the age-constitution of married women within the child-bearing ages. As the birth-rate varies with age, the change in age-constitution over the period is a factor which should be taken into account.

NATURAL INCREASE.—The decline of the birth-rate in New Zealand has been accompanied until recent years by a decrease in the death-rate. Nevertheless, the nominal rate of natural increase of population has fallen from 31.19 per 1,000 of mean population in 1870 to 15.82 in 1949. Acceptance of this figure without consideration of the effect of the changing age-constitution will give an erroneous view of the present margin of if. Tease and of the probable trend of population growth in the future (see Section on Population).

Period.Annual Rates per 1,000 Population.
Births.Deaths.Natural Increase.
1871–187539.8812.6727.21
1876–188041.2111.8029.41
1881–188536.3610.9525.41
1886–189031.159.8521.30
1891–189527.6810.1517.53
1896–190025.759.5516.20
1901–190526.609.9116.69
1906–191027.069.7517.31
1911–191525.989.2216.76
1916–192024.3210.7313.59
1921–192522.268.6313.63
1926–193019.768.6011.16
1931–193516.988.238.75
1936–194018.369.209.16
1941–194521.8110.0811.73
1946–194925.519.3216.19

The movements that have taken place since 1875 are well illustrated in the accompanying diagram, which shows the rates at five-yearly intervals.

COMPARISON WITH OTHER COUNTRIES.—An international comparison of birth and natural increase rates is made in the following table. New Zealand's position is much higher on the basis of natural increase than it would be on that of the birth-rate. The rates, which are the average of the five years 1944–48 unless otherwise indicated, are taken from the Monthly Bulletin of Statistics issued by the United Nations, and cover those countries for which such information is available.

Country.Rates per 1,000 of Population.
Births.Natural Increase.

*1945–48.

Costa Rico44.730.8
Puerto Rico41.528.3
Panama36.626.1
Mexico44.225.8
Venezuela38.323.3
Israel29.422.7
Ceylon38.419.8
Union of South Africa26.617.6
Canada26.016.6
Netherlands26.015.8
Chile33.315.1
New Zealand24.414.8
Peru27.014.7
Australia22.712.6
Finland25.812.5
Denmark22.412.5
United States22.612.4
Norway21.111.5
Portugal25.211.2
Japan29.311.1
Spain22.210.0
Sweden19.69.0
Eire22.58.4
Czechoslovakia22.48.3
Switzerland19.68.2
Italy20.88.0
United Kingdom18.56.9
India26.96.5
France19.03.9
Hungary*18.43.3
Belgium16.92.9
Austria17.11.1
Luxembourg14.71.0

SEXES OF CHILDREN BORN.—With the exception of one year (1860), there has always been a preponderance of males in the number of children born in New Zealand. The proportions are usually shown by stating the number of births of male children to every 1,000 female births. This number has been as high as 1,113 (in 1859), and as low as 991 (in 1860), but little significance can be attached to any figures prior to 1870, on account of the comparatively small number of births. The period preceding 1870 exhibited violent fluctuations in the proportion of males, which showed a tendency to disappear as the total of births grow larger. It is a popular idea that the proportion of male births tends to increase considerably in war years, but the experience in this country does little to bear out this theory, the average over the six years 1940–45 being 1,057, as against that of 1,050 for the preceding ton years. Figures taken out some years ago prove that the masculinity rate for first births is distinctly higher than for subsequent births. As the first-birth rate tends to rise during war years, and actually reached a very high peak during the early part of Second World War, the total masculinity rate would also be affected and would give rise to the popular idea that wars result, in an increase in the proportion of male children born. The extreme range since 1870 has been from 1,016 male per 1,000 female births in 1878 to 1,081 in 1923.

Year.Number of Births ofMale Births per 1,000 Female Births.
Males.Females.
193914,70514,1281,041
194016,81715,9541,054
194118,00317,0971,053
194217,24216,3321,056
194315,72814,5831,079
194417,20516,3941,049
194518,95018,0571,019
194621,53220,3391,059
194722,89821,9181,045
194822,61721,5761,048
194922,73321,2551,070

The masculinity rate from 1856 to 1949 is expressed in the following table in average ratios for successive decennial periods.

Period.Male Births per 1,000 Female Births.
1856–18651,062
1866–18751,043
1876–18851,045
1886–18951,045
1896–19051,054
1906–19151,055
1916–19251,053
1926–19351,057
1936–19451,050
1946–1949 (four years)1,055

MULTIPLE BIRTHS.—The number of cases of multiple births and the proportion per 1,000 of the total (living births only) during the last five years were:—

Year.Total Births.Total Cases.Cases of Twins.Cases of Triplets.Multiple Cases per 1,000 of Total Cases.
194537,00736,540463212.73
194641,87141,338519712.72
194744,81644,279529412.04
194844,19343,667522212.00
194943,98843,450532312.31

Counting only cases where both children were born alive, there were 532 cases of twin births (1,064 children) registered in 1949. There were also three eases of triplets.

The total number of accouchements resulting in living births was 43,450, and on the average one mother in every 81 gave birth to twins (or triplets).

When still-births are taken into account, the total number of accouchements for the year 1949 is increased to 44,193, and the number of cases of multiple births to 588. On this basis the proportion of mothers giving birth to twins or triplets is increased to one in 75.

The incidence of multiple births varies considerably, as may be seen from the following summary for each of the last eleven years:—

Year.Cases of Twins.Cases of Triplets.Total Multiple Cases.Rate per 1,000 Confinements.
Both born alive.One born alive, one still-born.Both still-born.Total.All born alive.One born-alive, two still-born.Two born alive, one still-born.All still-born.Total.
19392992473303   333311.3
194034444113991  1240112.0
194139851144633   346613.1
194240024134372 2 444113.0
1943332411138432 1639012.7
19444304034737   748014.2
194546337115112   251313.7
194651842145747 1 858213.8
194752938115784   458212.9
19485223075592   256112.6
19495324395843 1 458813.3

The proportion of multiple births has been consistently high during recent years, that experienced in 1944 being a record figure. The numbers of cases of triplets recorded in 1944 and in 1946 were exceptional. In 1935 one case of quadruplets was recorded all born alive.

The likelihood of still-births occurring is much greater in cases of multiple births than in single cases. This is exemplified in the following table. The figures in respect of multiple cases include all cases where one or more of the children were still-born.

Year.Still-birth Cases per 100 of Total Cases (including Still-births).
Single Cases.Multiple Cases.
19402.7213.97
19412.5413.95
19422.568.88
19432.4614.10
19442.258.96
19452.199.36
19462.079.79
19471.918.42
19481.806.60
19491.839.01
    Average of ten years2.2310.30

The following table shows the sexes in individual cases of live twin births for the years 1944–48.

Year.Total Cases.Both Males.Both Females.Opposite Sexes
1944430137134159
1945463171146146
1946518164173181
1947529190162177
1948522166169187

The two cases of triplets in 1948 comprised one of three females and one of two males and one female.

AGES OF PARENTS.—Information as to the relative ages of parents of legitimate living children whose births were registered in 1948 is shown in the following tables.

Age of Mother, in Years.Age of Father, in Years.
Under 21.21 and under 25.25 and under 30.30 and under 35.35 and under 40.40 and under 45.45 and under 50.50 and under 55.55 and under 65.65 and over.Total Cases.

* Including 29 legitimate cases where twins would have been registered had not one child been still-born.

† Including 2 cases of triplets.

Single Births
Under 212561,081750193404711 2,333
21 and under 251022,7654,7181,564372913296 9,659
25 and under 3067355,8184,7581,6883791061821513,534
30 and under 35 638433,9163,1461,077272764859,446
35 and under 40 3746572,0921,4645481387625,054
40 and under 45  6492075773621067481,389
45 and over    52336148490
    Totals3644,64712,20911,1377,5503,6151,36336223424*41,505
Multiple Births
Under 215431      13
21 and under 2511836111     67
25 and under 301874503062   171
30 and under 35  12534421611 138
35 and under 40   641261011186
40 and under 45    76722 24
45 and over      1   1
    Totals7301251211235926441500
    Grand totals3714,67712,33411,2587,6733,6741,3893662382542,005

PREVIOUS ISSUE OF PARENTS.—Information as to the previous issue of the existing marriage, required in connection with the registration of births in New Zealand, is useful not only for record purposes, but also as providing valuable data for statistical purposes. Tables are given in the annual Report on Vital Statistics containing detailed information as to number of previous issue in conjunction with (1) age of mother and (2) duration of marriage. The table under the first heading for the year 1948 is here summarized.

Age of Mother, in Years.Number of Previous Issue.Total Legitimate Cases.
0.1.2.3.4.5.6 and under 10.10 and under 15.15 and over.

*This number represents 41,505 single cases and 500 multiple cases.

Under 211,894399512     2,346
21 and under 255,8042,9287661724772  9,726
25 and under 304,7024,9442,43798439717071  13,705
30 and under 351,8932,6762,2551,3857333502848 9,584
35 and under 407071,0371,1518735693244235515,140
40 and under 451601612382431931322305421,413
45 and over413145177255191
    Totals15,16412,1586,9123,6641,9569901,035122442,005*

In computing previous issue, multiple births Lave been given their full significance, the numbers at the head of the columns relating to children born alive. In the following table this procedure has been followed not only for the previous issue but also for children covered by the 1948 registrations, who are also taken into account in the computation of the averages.

Age of Mother, in Years.Total Mothers.Total Issue.Average Issue.
Under 212,3462,8661.22
21–249,72615,0051.54
25–2913,70529,5392.16
30–349,58427,7352.89
35–395,14018,6303.62
40–441,4136,5034.60
45 and over915025.52
    Totals42,005100,7802.40

It should be stressed that the averages are no more than they purport to be—viz., the average number of children (including those registered in 1948) born up to the present time to those mothers of legitimate children whose births were registered during the year. They do not purport to represent, nor do they represent, the average issue of all women of the ages shown. Furthermore, they include issue born to the existing marriages only. The averages for recent years were as follows: 1944, 2.61; 1945, 2.58; 1946, 2.44; 1947, 2.34; and 1948, 2.40. In 1915, the earliest year for which reliable comparative figures are available, the average issue was 3.11. This falling trend in the average issue of women giving birth to children is some indication of the tendency towards smaller families. The 1943 average, for the first time since these figures were compiled, reversed the trend, and a further increase was recorded in 1944, but, with the increase in the proportion of first births in the three following years the average declined, although a slight improvement was noted for 1948.

FIRST BIRTHS.—Of a total of 189,994 accouchements resulting in legitimate births during the five years 1944–48, the issue of no fewer than 67,976 or 36 per cent., were first-born children. In 27,723, or 41 per cent., of these cases the birth occurred within twelve months, and in 48,126, or 71 per cent., within two years after the marriage of the parents. In the remaining 29 per cent. of cases where there was any issue to the marriage, two years or more had elapsed before the birth of the first child.

The annual number of first births registered naturally follows closely the movement in the marriage-rate. With the steady decline in the marriage-rate during the middle war years 1941–43 a fall in the number of first births was to be expected. This was accompanied by a marked downward movement in the actual proportion of first births to total births due in some measure to the sustained figures of total births during those years. It would appear, therefore, that the war period was responsible for at least a temporary trend towards larger families.

With the return of men from service overseas there came a heavy increase in the number of marriages, and correspondingly the proportion of first births rose steeply to 40.03 per cent. in 1947; a rate very little below the record figure of 41.69 per cent. established in 1940. The 1948 proportion shows a downward tendency, being lower than in the two preceding years. An interesting feature of the birth statistics for 1947 and 1948 is the high proportion of first births occurring within two years after marriage—75.62 per cent. of all legitimate first cases recorded in 1947 and 75.44 per cent. in 1948 falling in this class. These are the highest figures recorded since 1929.

The proportion of first births occurring within one year of the marriage of the parents which showed appreciable rises after the war up to a peak in 1947 has now declined.

Year.Total Legitimate Cages.Total Legitimate First Cases.Proportion of First Cases to Total Cases.First. Cases within One Year after Marriage.First Cases within Two Years after Marriage.
Number.Proportion to Total First Cases.Number.Proportion to Total First Cases.
   Per Cent. Per Cent. Per Cent.
194431,1569,62630.903,70338.476,23464.76
194534,73311,26532.434,29838.157,24464.31
194639,53414,88237.646,18541.5610,32369.37
194742,56617,03940.037,29342.8012,88575.62
194842,00515,16436.106,24441.1811,44075.44
Totals for five years189,99467,97635.7827,72340.7848,12670.99

Although the period of time elapsing before the birth of the first child has varied considerably during recent years, mainly as a result of war and post-war influences, there would appear to be little evidence to indicate that the long-term decline in the proportion of first births occurring within one year of marriage has been arrested. The following table compares the 1948 figures with those for earlier years, and illustrates the movement in the duration-of-marriage factor in first births.

Duration of Marriage, in Years.Proportion per Cent. of Total First Births.
1914.1924.1934.1944.1948.
Under 1 year52.9550.0646.2538.4741.18
1 and under 2 years28.6226.6426.7926.3034.27
2 and under 3 years9.0210.4310.2411.2811.63
3 and under 4 years3.435.516.167.884.36
4 and under 5 years1.883.033.967.182.04
5 and under 10 years3.263.365.497.365.45
10 years and over0.840.971.111.531.07
      Totals100.00100.00100.00100.00100.00

For the years covered by the foregoing table the average duration of marriage before the birth of the first child was—1914, 1.63 years; 1924, 1.76 years; 1934. 1.85 years; 1944, 2.22 years; and 1948, 1.78 years.

An item of interest extracted from the 1948 birth statistics is a table of first births occurring to mothers in different age-groups, expressed as a proportion per cent. of the total first births. A comparison has also been computed on the same basis for the years 1914, 1924, 1934, and 1944.

FIRST BIRTHS, BY AGE OF MOTHER

Age of Mother.First Births, Proportion per Cent. at each Age-group to Total First Births.
1914.1924.1934.1944.1948.
Under 206.737.558.907.336.68
20 and under 2535.8938.1640.3941.7944.08
25 and under 3035.0132.5932.7929.5431.01
30 and under 3515.6114.6813.1014.6112.48
35 and under 405.525.333.795.364.66
40 and under 451.161.590.991.341.06
45 and over0.080.100.040.030.03
      Totals100.00100.00100.00100.00100.00

The figures of average ages of mothers at the birth of their first child are as follows for the above years: 1914, 26.55; 1924, 26.39; 1934, 25.90; 1944, 25.18; and 1948, 25.89.

ILLEGITIMACY.—The numbers of illegitimate births registered during each of the years 1939–49, with the percentages they bear to total births registered, were as follows:—

Year.Number.Percentage of Total Births.
19391,1333.93
19401,2843.92
19411,2813.65
19421,3393.99
19431,4674.84
19442,0206.01
19451,8244.93
19461,8244.36
19471,7273.85
19481,6863.82
19491,6713.80

War influences, resulting in unusual movements of the population and the influx of servicemen to the more heavily populated centres, no doubt are responsible for the high figures recorded during 1943–46.

The long-term trend in the rate of illegitimate births is indicated by the movement in the proportion of illegitimate births per 1,000 unmarried women—i.e., spinsters, widows, and divorced women—at the reproductive ages. The figures for each census year from 1891 to 1945 are as follows:—

Census Year.Unmarried Women 15 and under 45 Years of Age.Illegitimate Births.Illegitimate-birth Rate per 1,000 Unmarried Women.
189168,0306389.38
189688,3338349.44
1901103,6529379.04
1906114,0961,1329.92
1911120,7781,0788.93
1916125,4611,1599.24
1921136,5391,2589.21
1926148,5511,4739.92
1936167,7811,1266.71
1945156,3261,82411.67

Included in the total of 1,686 illegitimate births in 1948 were twenty-four cases of twins, the number of accouchements being thus 1,662. From the following table it will be seen that of the 1,662 mothers 488, or 29 per cent., were under twenty-one years of age.

Age.Cases.
Years. 
121
133
144
1513
1634
1757
18120
19125
20131
21125
22120
23117
2488
2577
2682
2782
2877
2956
3055
3147
3237
3332
3429
3535
3621
3714
3816
3920
4019
416
428
435
444
451
461
Total1,662

The Births and Deaths Registration Amendment Act, 1930, directs the omission of the word “illegitimate” from the register when the birth of an illegitimate child is registered. The word “illegitimate” appearing in any entry made prior to the passing of the Act is deemed to be expunged and deleted, and must also be omitted from any certified copy of an entry.

The Legitimation Act.—An important Act was passed in 1894 and re-enacted in 1908, intituled the Legitimation Act. Under this Act any child born out of wedlock whose parents afterwards intermarried was deemed to be legitimized by such marriage on the birth being registered in the manner prescribed by the Act. For legitimation purposes a Registrar was required to register a birth when called upon to do so by any person claiming to be the father of an illegitimate child; but such person was required to make a solemn declaration that he was the father, and was also required to produce evidence of marriage between himself and the mother of the child.

Prior to the passing of the Legitimation Amendment Act, 1921–22, legitimation could be effected only if at the time of the birth of the child there existed no legal impediment to the intermarriage of the father and mother, but the legal-impediment proviso was repealed by that amendment.

The amendment of 1921–22 also provided for legitimation by the mother in the event of the death of the father after the intermarriage of the parents. In such a case the application for legitimation was heard by a Magistrate, and upon his certifying that it had been proved to his satisfaction that the husband of the applicant was the father of the child, the child was registered as the lawful issue of the applicant and her husband.

Important changes were made by the Legitimation Act of 1939, which repealed previous legislation on the subject. This Act stipulates that every illegitimate person whose parents have intermarried, whether before or after the passing of the Act, shall be deemed to have been legitimated from birth by reason of such marriage. The Act requires the parents or surviving parent of any person legitimated under the Act to register with the Registrar-General the particulars of the birth of that person, showing that person as the lawful issue of the parents. Application for registration was required to be made within six months after the date of the passing of the Act in cases where the marriage took place prior to that date. In cases where the marriage has taken place subsequent to the passing of the Act, application for registration must be made within three months after the date of the marriage.

Where the Registrar-General has reason to believe that any person has beer, legitimated under the terms of the Act, and no application for registration has been made within the prescribed time, he may require the responsible parents or parent to make an application within a specified period of not less than seven days after receiving notice to do so. Any failure to comply with the notice requiring application for registration within the time specified renders the person or persons responsible liable on summary conviction to a fine of £5. If no application for registration is made within the appropriate time specified in the Act or in the notice received from the Registrar-General, application for registration of the particulars of the birth of any legitimated person may be made by that person, or by one of his parents, or by any other person.

The number of legitimations registered in each of the last eleven years, and the total since the Act of 1894 came into force, are shown in the following table. The effect of the Legitimation Act of 1939 is evident in the figures for 1940, while the necessity for prompt registration in order to participate in family benefits under the Social Security Act has accentuated the falling-away of the not previously registered cases to insignificant proportions.

 Number of Children legitimized.
Year.Previously registered.Not previously registered.Total.
193934957406
1940409104513
194137957436
194239634430
194340037437
194423934373
194539411405
194648615501
19474964500
19485183521
19494112413
Totals from 1894 to 194910,5163,29413,810

ADOPTIONS.—The Births and Deaths Registration Act contains provision for the registration of adopted children. The Clerk of the Court by which any adoption order is made is required to furnish to the Registrar-General particulars of the order, including the full name and place of birth of the child, as well as the full names and addresses of both the natural and the adopting parents. An entry is made in the prescribed form in the register of births, particulars of the adopting parents being given in lieu of those of the natural parents. If the child's birth has previously been registered in New Zealand a note of the adoption order is made on the original entry. An amendment to the Infants Act in 1939 extended the age at which a child might be legally adopted from under fifteen years to under twenty-one years.

The following table shows the number of adoptions which have been registered during the eleven years ended in 1949.

Year.Number.
Males.Females.Total.
1939263267530
1940293339632
1941293268561
1942397376773
1943279298577
19446316821,313
19455965951,191
19466806931,373
19476806591,339
19486986641,362
19496545951,249

Of the 1,249 adoptions registered in 1949, 608 were children under the age of one year, 296 were between one and five years, 171 were between five and ten years, and 174 were aged ten years or over.

Statistics of adoptions registered have been available in New Zealand since 1919, and these indicate that the numbers are considerably influenced by the economic condition of the country, the lowest total, 329, being recorded in 1931, followed by 332 in 1933 and 337 in 1932. The highest total prior to 1940 occurred in 1921, when; 584 adoptions were registered, this, no doubt, being the result of influences operating after the First World War. Possibly various factors arising out of the late war have had a bearing on the high totals for recent years, but the extension of age at which a child might legally be adopted is also of importance in this connection. It should also be noted that the unprecedented totals since 1944 are associated with the extremely high number of illegitimate births occurring in these years.

STILL-BIRTHS.—The registration of still-births was made compulsory in New Zealand as from the 1st March, 1913, Although it is necessary to effect a birth-registration entry for a still-born child, no entry is made in the register of deaths, Section 15 of the Statutes Amendment Act, 1946, amending the Births and Deaths Registration Act, 1924, stipulates, however, that a medical practitioner or a midwife in attendance at a confinement where a still-birth occurs must furnish a certificate stating to the best of his or her knowledge and belief the cause of the still-birth. Particulars of causes of still-births will be found in Subsection 4 C relating to deaths. A still-born child is defined as one “which has issued from its mother after the expiration of the twenty-eighth week of pregnancy and which was not alive at the time of such issue.” Still-births are not included either as births or as deaths in the various numbers and rates shown in this subsection and in that relating to deaths.

The registrations of still-births during each of the years 1939–1949 were as follows:—

Year.Males.Females.Totals.Male Stillbirths per 1,000 Female Still-births.Percentage of Still-births to
Living Births.All Births.
19394954059001,2223.123.03
19405284379651,20824942.86
19415244479711,1722.772.69
19424824098911,1782.652.59
19434503678171,2262.702.62
19444373627991,2072.382.32
19454634028651,1522.342.28
19465304019311,3222.222.18
19475014109111,2222.031.99
19484833518341,3761.891.85
19494493477961,2941.811.78

Masculinity is in general much higher among still-births than among living births, the rate for still-births in 1949 being 1,294 males per 1,000 females as compared with 1,070 for living births.

The percentage of illegitimates among still-born infants was in 1949, 5.53, and among infants born alive 3.80.

Of the living legitimate births registered in 1948, 36 per cent. were first births, while of legitimate still-births 42 per cent. were first births. Statistics over many years indicate that there is a considerably greater probability of still-births occurring to mothers having their first accouchement than to those having subsequent accouchements.

4 B—MARRIAGES

MARRIAGE may be celebrated in New Zealand only on the authority of a Registrar's certificate, either by a person whose name is on the list of officiating ministers under the Marriage Act, or before a duly appointed Registrar or Deputy Registrar of Marriages. Marriage by an officiating minister may be celebrated only between 8 o'clock in the morning and 8 o'clock in the evening. Marriage before a Registrar can be celebrated at any time during the hours the office of the Registrar is open for the transaction of public business. Prior to the passing of the Marriage Amendment Act, 1920, the limits in all cases were 8 a.m. and 4 p.m.

Notice of intended marriage must be given to a Registrar of Marriages by one of the parties to the proposed marriage, and one of the parties must have resided for three full days in the district within which the marriage is to be celebrated. In the case of a person under twenty-one years of age, not being a widow or widower, the consent of parent or guardian is necessary before the Registrar's certificate can be issued. A schedule to the Guardianship of Infants Act, 1926, sets out the person or persons whose consent is required in various circumstances. In oases where double consent is required, section 8 provides for dispensing with the consent of one party if this cannot be obtained by reason of absence, inaccessibility, or disability. In similar cases where the consent of only one person is necessary, consent may be given by a Judge of the Supreme Court. Consent of the Court may also be given in cases of refusal by any person whose consent is required.

If, in any particular case, a declaration is made that there is no parent or lawful guardian resident in New Zealand, then a certificate may be issued by the Registrar (without the necessity of Court proceedings) fourteen days after the date on which the notice of intended marriage was given.

The system of notice and certificate has operated in New Zealand since 1866. Officiating ministers and Registrars are required to send to the Registrar-General returns of all marriages celebrated, and as the returns come in they are checked off with the entries in the Registrars' lists of notices received and certificates issued. In case of the non-arrival of a marriage return corresponding to any entry in the list of notices, inquiries are made as to whether the marriage has taken place.

The marriage of a man with his deceased wife's sister was legalized in New Zealand in the year 1881, and the marriage of a woman with her deceased husband's brother in 1901. Marriage with a deceased wife's niece or a deceased husband's nephew was rendered valid in 1929.

An amendment to the Marriage Act in 1939, which repealed a similar provision passed in 1933, stipulates that a Registrar may not issue a certificate of marriage where either of the intending parties is under sixteen years of age. No marriage shall be deemed to have been unduly solemnized, however, by reason only of this provision. The 1933 amendment made provision enabling women to become officiating ministers for the purposes of the Marriage Act.

The Marriage Emergency Regulations 1944 provided for the keeping in New Zealand of a special register of Service marriages solemnized out of New Zealand between parties, one or both of whom were members of the New Zealand Armed Forces. These regulations were replaced by the Marriage Amendment Act, 1946, which, in addition, provides for the validity of Service marriages, thus replacing the United Kingdom Act of 1823, upon which their validity hitherto depended.

Particulars regarding divorce will be found at the close of this subsection.

NUMBERS AND RATES.—The movement of the marriage-rate over a lengthy period of time may be observed from the statistical summary appearing towards the end of this Year-Book. In a country with a growing population, the annual number of marriages celebrated naturally shows a rising trend. This has been the experience in New Zealand, with the exception of the periodical interruptions occasioned by war and adverse economic conditions. The numbers and rates of marriages during each of the last twenty years are here given.

Year.Number.Rate per 1,000 of Population.
193011,0757.78
19319,8176.81
19329,8966.81
193310,5107.18
193411,2567.64
193512,1878.23
193613,8089.25
193714,3649.55
193815,32810.09
193917,11511.12
194017,44811.28
194113,3138.65
194212,2197.91
194311,5797.53
194413,1258.43
194516,16010.14
194620,53512.38
194718,52510.92
194817,1929.93
194916,7889.50

Both the marriage-rate and the number of marriages in 1946 were the highest on record. The main reason for this was the return from overseas of many thousands of men in the most prolific marriage age-groups. An appreciable decline, however, in both the number of marriages and in the marriage-rate took place in 1947, and has continued in 1948 and 1949, although the decline was less pronounced in the latter year.

Changes in this available marriageable population, together with factors arising out of the war, have affected the marriage-rate in recent years. From the time of arrival of American Forces in New Zealand in 1942 up to the end of the year 1944, a total of 1,396 marriages between American servicemen and New Zealand women was celebrated in this country.

Comparison with Other Countries.—Marriage-rates for certain countries for 1948 are given below (these particulars have been taken from the Monthly Bulletin of Statistics, issued by the Statistical Office of the United Nations): United States of America. 12.3; Israel, 10.8; Czechoslovakia, 10.6; Hungary, 10.4; Austria, 10.0; New Zealand, 9.9, Australia. 9.7; Canada, 9.6; Denmark, 9.4; Belgium, 9.2; Norway, 9.2; Netherlands, 9.0; United Kingdom, 8.9; France, 8.9; Luxembourg, 8.8; Switzerland, 8.5; Chile, 8.3; Italy, 8.3; Sweden, 8.2; Portugal, 7.7; Spain, 7.7; Puerto Rico, 7.0; Ceylon, 6.2; Mexico, 5.9; Republic of Ireland, 5.4: Venezuela, 4.8; Costa Rica, 4.4; Panama, 3.3; Peru, 2.4.

STANDARDIZED MARRIAGE-RATE.—In a country like New Zealand where the age-constitution of the population has altered considerably, the crude marriage-rate based on the total population does not disclose the true position over a period of years. Even if only the unmarried (including widowed and divorced) population over twenty in the case of men and over fifteen in the case of women be taken into account, the rates so ascertained would still not be entirely satisfactory for comparative purposes as between various periods, owing to differences in sex and age constitution, divergences between rates for different age-groups, and variations in the proportions of marriageable persons in the community. A better plan is to ascertain the rate among unmarried females in each age-group and to standardize the results on the basis of the distribution of the unmarried female population in a basic year.

This has been done for each census year from 1881 to 1945, the year 1911 being taken as the standard, The course of the standardized rates as shown in the following table varies materially from that of the crude rates.

Year.Marriage-rate per 1,000,Index Numbers of Marriage-rates. Base: 1911 (= 100).
Total Population.Unmarried Female Population 15 and over.Total Population.Unmarried Female Population 15 and over.
Crude.Standardized.Crude.Standardized.
18816.673.980.776125137
18866.055.160.46993102
18916.048.350.3698285
18966.847.348.0788081
19017.850.249.0908583
19068.555.653.7989491
19118.759.159.1100100100
19167.550.754.3868692
19218.759.763.9100101108
19267.953.162.69190106
19369.357.168.010797115
194510.165.088.1117110149

The index numbers of the three classes of rates over the series of years enable the effect of standardization to be seen at a glance. Comparing, for instance, the years 1881 and 1911, it is seen that whereas the crude rate per 1,000 of total population was nearly one-fourth less in 1881 than in 1911, the crude rate, when only the unmarried female population of fifteen and over is considered, was one-fourth greater, and the standardized rate more than one-third greater.

Between the censuses of March, 1936, and September, 1945, the numbers of unmarried women aged fifteen and under thirty-five (the ages within which most women marry) fell by over 11,000. This decline, which was largely a result of the high marriage-rate in 1937–40 and 1945, appears to be chiefly responsible for the remarkably high standardized marriage-rate of 1945. A contributory cause was the slightly higher ages of 1945 brides, 11.63 per cent. being over thirty-five in 1945, as compared with 9.40 per cent. in 1936.

Owing to staff difficulties arising out of the war situation, no detailed marriage statistics were compiled for the years 1941–44 inclusive. The statistics and information contained in the following pages relate in most cases to the years 1940, and 1945 to 1948 both inclusive.

CONJUGAL CONDITION.—The total number of persons married during the year 1948 was 34,384, of whom 29,719 were single, 1,729 widowed, and 2,936 divorced. The figures for each of the live years 1940 and 1945 to 1948, showing the sexes separately, are given in the table following.

Year.Single.Widowed.Divorced.Total Persons married.
Bridegroom.Bride.Bridegroom.Bride.Bridegroom.Bride.
194015,92116,16780954771873434,896
194514,08014,2499378681,1431,04332,320
194618,19218,1299129611,4311,44541,070
194716,15416,1868998861,4721,45337,050
194814,79914,9208978321,4961,44034,381

The position is more easily seen by studying the percentages given in the next table.

Year.Bridegrooms.Brides.
Single.Widowed.DivorcedSingle.Widowed.Divorced.
 Per Cent.Per Cent.Per Cent.Per Cent.Per Cent.Per Cent.
194091.244.644.1292.663.144.20
194587.135.807.0788.185.376.45
194688.594.446.9788.284.687.04
194787.204.857.9587.384.787.84
194886.085.228.7086.784.848.38

During the ten years 1939–48 the number of divorced persons remarrying increased from 41 to 85 per 1,000 persons married.

Reference to the divorce statistics at the end of this subsection will show that there has been a marked increase in the incidence of divorce over the last five year period: as a matter of fact, the number of decrees absolute in the period 1944–48 was 9,458, as compared with 4,152 in the five years 1934–38, an increase of 128 per cent. The increase in the number of divorced people remarrying is therefore not surprising. The number of widowed persons remarrying, which was 39 per 1,000 in 1940, has risen to 50 per 1,000 in 1948.

The relative conjugal condition of bridegrooms and brides for each of the live years 1940 and 1945 to 1948 is next given.

Year.Marriages between BachelorsMarriages between Widowers andMarriages between Divorced Men and
Spinsters.Widows.Divorced Women.Spinsters.Widows.Divorced Women.Spinsters.Widows.Divorced Women.
194015,1712684824882249750855155
194513,030443604497285156722140283
194616,763512917454288170912161358
194714,856430869428302169902154415
194813,582390827434279184904163429

The relative proportions of divorced men and divorced women remarrying during the last three years has changed but little compared with the ten years earlier. During the three years 1936–38 the number of male divorcees remarrying was 1,687, as compared with 1,779 females, which gives a rate of 95 males for every 100 females. In 1946–48 the respective numbers were 4,398 males and 4,338 females and the corresponding rate 101 males for every 100 females. In the case of widowed persons remarrying, however, there has been a marked change in the figures. In the three-year period 1936–38, 2,404 widowers remarried but only 1.493 widows, whereas in 1946–48 there were 2,708 widowers and 2,679 widows who remarried, the number of widowers per 100 widows being 161 in the former period and 101 in the latter period. It is probable that the increase in the proportion of widows remarrying is due in some measure to the numbers of young women who were widowed as a result of the war.

AGES OF PERSONS MARRIED.—Of the 34,384 persons married in 1948, 4,465 or 13 per cent., were under twenty-one years of age; 12,034, or 35 per cent., were returned as twenty-one and under twenty-five; 8,770, or 26 per cent., as twenty-five and under thirty; 5,820, or 17 per cent., as thirty and under forty; and 3,295 or 9 per cent., as forty years of age or over. The following table relates to the year 1948.

Age of Bridegroom, in Years.Age of Bride, in Years.Total Bridegrooms.
Under 21.21 and under 25.25 and under 30.30 and under 35.35 and under 40.40 and under 45.45 and over.
Under 214891821342  690
21 and under 251,9642,896539426  5,447
25 and under 301,0492,5151,48426160935,381
30 and under 352087258354521542562,405
35 and under 405319030935922258251,216
40 and under 4535212917518112234696
45 and over927801111702357251,357
Total brides3,7756,5873,3891,40479544979317,192

There have been some considerable changes in the proportions of persons marrying at the various age-periods. To illustrate the extent to which these figures have varied since the beginning of the century, a table is given showing the proportions of men and women married at each age-period to every 100 marriages in quinquennia from 1900 to 1939 and for the four-year period 1945–48.

Period.Under 21.21 and under 25.25 and under 30.30 and under 35.35 and under 40.40 and under 45.45 and over.Totals.
Males
1900–041.6724.7538.4218.638.053.584.90100.00
1905–091.7923.4239.2518.788.473.384.91100.00
1910–141.9422.0438.0420.758.543.904.79100.00
1915–193.2621.4033.0419.6710.475.027.14100.00
1920–243.1324.6632.2117.7310.245.436.60100.00
1925–293.4928.0434.4914.337.704.487.47100.00
1930–343.4627.2837.0215.146.103.617.39100.00
1935–392.6825.9138.2616.466.753.226.72100.00
1945–483.8829.3732.5715.527.533.927.21100.00
Females
1900–0416.9239.7527.339.263.401.531.81100.00
1905–0916.1537.1028.5310.184.211.802.03100.00
1910–1415.6034.9028.5211.575.042.052.32100.00
1915–1915.2135.0126.1711.396.062.983.18100.00
1920–2415.9935.4726.2110.665.532.983.16100.00
1925–2918.6137.8823.678.934.652.823.44100.00
1930–3418.6738.5124.798.223.852.403.56100.00
1935–3917.1038.2626.308.863.912.023.55100.00
1945–4819.5039.1321.698.714.382.434.16100.00

A perusal of the above table reveals the fact that greater proportions of marriages are now being celebrated at both the younger and the older age-groups. There is also a decline over the whole period in the 25 and under 30 age-group. This has become very marked in the 1945–48 period, and is mainly due to some thousands of the male population in this age-group being overseas during the early part of the period. Moreover, the fact that the outbreak of war induced a number of earlier marriages has resulted in fewer unmarried people entering this age-group.

For many years the average age (arithmetic mean) at marriage for both males and females, more particularly the latter, allowed a tendency to increase. However, after reaching its maximum in the three years 1917, 1918, and 1919, the average age recorded a slight but fairly constant decline during the next decade, since when it has fluctuated within narrow limits. The figures for each of the years 1935–40 and 1945–48 are as follows:—

Year.Bridegrooms.Brides.
193529.9426.27
193629.9726.32
193729.9326.26
193830.0326.37
193929.6426.17
194029.4125.97
194530.5226.75
194629.7326.18
194729.7126.11
194829.9626.32

The average ages of bachelors and spinsters at marriage are considerably lower than those shown in the preceding table, which covers all parties and is naturally affected by the inclusion of remarriages of widowed and divorced persons. The average ages of grooms and brides of the various conditions in each of the last five years for which the information is available were:—

YearBridegrooms.Brides.
Bachelors.Divorced.Widowers.Spinsters.Divorced.Widows.
 Years.Years.Years.Years.Years.Years.
194027.8241.0750.4624.8536.0045.68
194528.3039.9052.4025.1335.9342.43
194627.8039.6352.5924.7634.0641.22
194727.5439.3952.7624.4434.5742.83
194827.5539.6053.6324.4235.4144.63

The foregoing figures give the average ages at marriage, but these do not correspond with the modal or popular age, if the age at which the most marriages are celebrated may be so termed. For several years prior to 1918 age 26 held pride of place for bridegrooms and age 21 for brides. The latter has continued right through to 1948 without alteration, but in the case of bridegrooms the most popular age has varied, and for 1948 was 23.

Marriages Of Minors.—Of every 1,000 men married in 1948, 40 were under twenty-one years of age, while 220 in every 1,000 brides were under twenty-one.

In 489 marriages in 1948 both parties were given as under twenty-one years of age, in 3,286 marriages the bride was returned as a minor and the bridegroom as an adult, and in 201 marriages the bridegroom was a minor and the bride an adult.

The proportion of minors among persons marrying declined continuously from 1932 to 1936, probably a result of the depression. Since 1936 there have been substantial increases in the actual numbers of minors marrying, although the number of brides coming within this category in 1945 was considerably below the 1940 figure, due to war condition's. Figures for the years 1940 and 1945 to 1948 are contained in the following table:—

Year.Age, in Years.Totals.
16.17.18.19.20.Number.Rate per 100 Marriages.
Bridegrooms
194017651463515703.27
1945317761874086914.28
1946 12621824767323.56
1947211782183876963.81
1948214572054126904.01
Brides
1940942636581,0821,3793,47619.92
1945752075168501,1612,80917.38
1946782836541,2071,5483,77018.36
1947923037041,1551,5183,77220.67
19481023266991,1631,4853,77521.95

MARRIAGES BY MINISTERS OF VARIOUS DENOMINATIONS.—Of the 17,192 marriages registered in 1948, Church of England clergymen officiated at 4,565, Presbyterians at 4,961, Roman Catholics at 2,030, and Methodists at 1,590, while 3,100 marriages were celebrated before Registrars.

The following table shows the proportions of marriages by ministers of the principal denominations in each of the years 1935–40 and 1945–48.

Denomination.Percentage, of Marriages.
1935.1936.1937.1938.1939.1940.1945.1946.1947.1948.
Presbyterian26.7926.9426.8626.4625.3726.1027.8828.3528.2628.86
Church of England26.0726.1026.5226.9327.1627.4527.9427.6826.5326.55
Roman Catholic11.4011.6511.7411.5812.6012.2311.5811.8512.2511.81
Methodist10.4310.5510.7410.7310.4110.1710.359.789.589.25
Other denominations8.397.617.277.187.087.045.885.745.185.50
Before Registrars16.9217.1516.8717.1217.3817.0116.3716.6018.2018.03
    Totals100.00100.00100.00100.00100.00100.00100.00100.00100.00100.00

The foregoing figures must not be taken as an exact indication of the religious professions of the parties married, as it does not necessarily follow that both (or even one) of the parties are members of the Church whoso officiating minister performed the ceremony, and persons married before Registrars may belong, in greater or lesser proportion, to any or none of the denominations. Of the population (exclusive of Maoris) at the general census of 1945 who stated their religious profession, 41.0 per cent. were adherents of the Church of England, 25.5 per cent. Presbyterian, 14.7 per cent. Roman Catholic, 8.8 per cent. Methodist, and 100 per cent. other denominations.

The proportion of civil marriages in 1948 was appreciably lower than in 1947, the actual number showing a decrease of 271. The year recording the highest proportion was 1917, when 24.77 per cent. of marriages took place before Registrars.

NUMBER OF OFFICIATING MINISTERS.—The number of names on the list of officiating ministers under the Marriage Act was (January, 1950) 2,570, and the denominations to which they belong are shown hereunder.

Denomination.Number.
Roman Catholic Church521
Church of England494
Presbyterian Church of New Zealand433
Methodist Church of New Zealand317
Salvation Army156
Ratana Church of New Zealand140
Baptist99
Ringatu Church45
Latter Day Saints41
Brethren39
Seventh Day Adventist37
Associated Churches of Christ33
Congregational Independent28
Commonwealth Covenant Church26
Liberal Catholic Church14
Apostolic Church10
Assemblies of God10
Jehovah's Witnesses10
Evangelistic Church of Christ9
Churches of Christ8
Spiritualist Church of New Zealand8
Evangelical Lutheran Concordia Conference8
Pentecostal Church of New Zealand7
Church of Te Kooti Rikirangi7
United Maori Mission6
Absolute Maori Established Church5
Hebrew. Congregations4
Christadelphian4
Church of God3
Unitarian3
Four Square Gospel Church of Christ3
Christian Spiritualist Church2
Four Square Gospel Mission2
Star of Hope Mission of New Zealand2
Revival Fire Mission2
Greek Orthodox Church in New Zealand2
Te Maramatanga Christian Society2
International Bible Students Association2
Others28
Total2,570

The Ratana Church of New Zealand, the Ringatu Church, the Te Maramatanga Christian Society, the Absolute Maori Established Church, the United Maori Mission, and the Church of Te Kooti Rikirangi are Maori denominations.

DIVORCE.—The provisions as to dissolution of marriage are contained in the Divorce and Matrimonial Causes Act, 1928, which consolidated and amended the then existing legislation on the subject.

A brief historical account of divorce legislation is given in the 1931 issue of the Year-Book; the present position is outlined in the following résumé.

Any married person, domiciled in New Zealand for two or more years at the time of filing the petition, may obtain a divorce on one or more of the following grounds:—

  1. Adultery since the celebration of the marriage.

  2. Wilful and continuous desertion for three years or more.

  3. Habitual drunkenness for four years, coupled with (wife's petition) failure to support or habitual cruelty, or with (husband's petition) neglect of or self-caused inability to discharge, domestic duties.

  4. Sentence to imprisonment for seven years or more for attempting to murder, or for wounding or doing actual bodily harm to, petitioner or child.

  5. Murder of child of petitioner or respondent.

  6. Insanity and confinement as a lunatic for seven out of ten years preceding the petition.

  7. Insanity for seven years, and confinement for three years immediately preceding the petition.

  8. Failure to comply with a decree of Court for restitution of conjugal rights.

  9. Parties have separated under an agreement, written or verbal, which has been in full force for not less than three years.

  10. Parties have been separated by a decree of judicial separation or a separation order which has been in force for three years. (An amendment in 1930 removed the restriction imposed by the principal Act—which permitted only New Zealand decrees or orders—and extended the provision to cover similar decrees or orders made in any country.)

  11. Husband guilty of rape, sodomy, or bestiality since marriage.

A deserted wife whose husband was domiciled in New Zealand at the time of desertion is considered, for the purpose of the Divorce and Matrimonial Causes Act, 1928, as retaining her New Zealand domicile. Where a wife petitions on grounds (***) and (j), her New Zealand domicile is retained if her husband was domiciled in New Zealand at the date of the agreement, decree, or order.

The amending Act of 1930 establishes a New Zealand domicile for a wife petitioning for divorce where she has been living apart from her husband for three years, if she has been living in New Zealand for three years preceding the petition, and has the intention of residing in New Zealand permanently.

The Matrimonial Causes (War Marriages) Act, 1947, makes special provisions in respect of war marriages where one of the parties was domiciled outside New Zealand by: (1) Extension of jurisdiction of the Supreme Court to certain marriages irrespective of domicile; (2) recognition of decrees and orders (in relation to such marriages) made in the United States of America; and (3) shortening the period of desertion or separation as ground for divorce in such eases from three years to twelve months.

By authority of the Act, previous legislation on the subject embodied in the Matrimonial Causes (War Marriages) Emergency Regulations 1946 was revoked, accrued rights being protected.

Figures showing the operations of the Supreme Court in its divorce jurisdiction during recent years are as follows. About 50 per cent. of the decrees granted in any year relate to petitions filed in prior years.

Year.Dissolution or Nullity of Marriage.Judicial Separation.Restitution of Conjugal Rights.
Petitions filed.Decrees Nisi.Decrees Absolute.Petitions filed.Decrees for Separation.Petitions filed.Decrees for Restitution.
19381,1781,0631,05051145119
19391,2431,0921,03242161123
19401,1891,0421,0593 112106
19411,11599695661114100
19421,1779889625314294
19431,6411,3981,10041302227
19441,9921,8211,63072499421
19452,2111,9141,725112550461
19462,3632,1372,133106562463
19472,1912,0512,11771430371
19482,1601,9741,853207355300

As was to be expected, the later years of the war witnessed a marked increase in the incidence of divorce. However, it was not anticipated that the high level of decrees absolute granted in 1945 would be exceeded by approximately 400 in each of the two succeeding years. Although a slight falling off for the first time in six years was recorded during 1947 followed by a further small decrease in 1948, it is worth noting that for every nine marriages solemnized during the latter year, one was dissolved.

The next table gives the grounds (dissolution or nullity cases) of petitions and decrees during 1947 and 1948.

Grounds.Petitions Filed.Decrees Absolute Granted.
Husbands' Petitions.Wives' Petitions.Husbands' Petitions.Wives' Petitions.
1917.1948.1947.1948.1947.1948.1947.1948.
Adultery246229150155251183160127
Bigamy Desertion12933 54
Desertion165170182181141126185142
Drunkenness, with cruelty, failure to maintain, &c.  817  512
Insanity14132916635
Rape  11  11
Non-compliance with order for restitution of conjugal rights2792151018230123611286
Separation for not less than three years472467554609393386535535
Non-consummation 374 262
    Totals1,1771,0991,0141,0611,1059391,012914

The figures shown for decrees absolute cover all such granted during the year, whether the antecedent decree nisi was granted in the same or in a previous year.

The principal grounds on which petitions were filed during 1948 showed the following increases compared with 1938, a normal pre-war year: Adultery, 181 (89.2 per cent.); desertion, 139 (65.6 per cent.); non-compliance with restitution order, 189 (173.4 per cent.); and separation, 441 (69.4 per cent.).

In 714 of the 2,160 cases where petitions for dissolution were filed during 1948 there was no living issue of the marriage. The number of living issue was 1 in 631 cases, 2 in 402 cases, 3 in 198 cases, 4 or more in 209 cases, while the number of issue was not stated in six cases.

The table which follows shows the duration of marriage in all cases for which petitions for dissolution were filed in the five years 1944 to 1948.

Duration of Marriage, in Years.Husbands' Petitions.Wives' Petitions.
1944.1945.1946.1947.1948.1944.1945.1946.1947.1948.
Under 528021824021319791113167158169
5 and under 10354476480404308257320343334340
10 and under 15186232245218243160186204191243
15 and under 20164147166140126118149140122133
20 and under 30116138145141162155142141152141
30 and over56504861564040445634
Not stated7   78  11
    Totals1,1631,2611,3241,1771,0998299501,0391,0141,061

The number of children affected by the divorce petitions of their parents during each of the last five years was as follows: 1944, 2,696; 1945, 2,903; 1946, 3,120; 1947, 2,978; and 1948, 3,108.

4 C—DEATHS

REGISTRATION.—The history of the early legislative requirements in regard to the registration of deaths in New Zealand is similar to that in relation to births, particulars of which will be found on page 53.

Until the year 1876 the only particulars provided for in the death-registration entry were the date, place, and cause of death, and the name, sex, age, and occupation of deceased. The Registration of Births and Deaths Act, 1875, required information to be recorded as regards parentage, conjugal condition, and issue of deceased. Particulars as to burial had also to be entered, as well as more detailed information regarding cause of death. Subsequent amendments to the Act have made it requisite to give additional information concerning issue, and, in the case of married males, age of widow.

Every death occurring in New Zealand is required to be registered within three days after the day of the death if in a city or borough, or seven days in any other case. There is a penalty up to £10 for neglect, the undertaker in charge of the funeral being solely responsible for registration. Prior to 1913 the undertaker was primarily responsible for registration, but, in addition, the occupier of the house and every other person present at the death were also responsible parties.

The law does not impose any limit of time after which a death may not be registered as it does in the case of a birth. Although it is necessary to effect a birth-registration entry in the case of a still-born child, no entry is made in the register of deaths. Section 15 of the Statutes Amendment Act, 1946, amending the Births and Deaths Registration Act, 1924, stipulates, however, that a medical practitioner or a midwife in attendance at a confinement where a still-birth occurs must furnish a certificate stating to the best of his or her knowledge and belief the cause of the still-birth.

Any person burying, or permitting or taking part in the burial of, the body of any deceased person without a certificate of cause of death signed by a duly registered medical practitioner, a Coroner's order to bury the body, or a Registrar's certificate of registration of the death, renders himself liable to a fine of £10.

Prior to 1937 it was incumbent upon a medical practitioner to give the certificate of cause of death to the person required to supply information for the purpose of registering the death (the undertaker or other person in charge of the burial). By section 11 of the Statutes Amendment Act, 1936, however, the medical practitioner is now required to deliver the certificate forthwith direct to the Registrar of the district in which the death occurred. It is also the duty of the medical practitioner, on signing a certificate of cause of death, to give written notice of the signing to the undertaker or other person having charge of the burial.

In the new form of medical certificate introduced by this amendment, provision is made for an additional statement to be filled in by the medical practitioner in any case where, in his opinion, the death has occurred in any circumstances of suspicion. The practitioner is required to report such case forthwith to the Coroner, and an indication that this has been done must be made in the space provided on the certificate.

Section 3 of the Statutes Amendment Act, 1944, makes provision for the correction of the register of deaths in cases where it is subsequently determined, as a result of a post-mortem examination or by any other means, that the causes of death as stated in the certificate are found to be materially incorrect. This may be effected by the Registrar on receiving a statement correctly setting out the causes of death and signed by a medical practitioner appearing to the Registrar to have a knowledge of the circumstances.

Deaths of Members of the Forces while Overseas.—The Registration of Deaths Emergency Regulations 1941, which superseded 1940 regulations of similar title, required the Registrar-General to compile a War Deaths Register of persons of New Zealand domicile who died while out of New Zealand on service in some capacity in connection with the 1939–45 war. Members of the New Zealand Naval Forces were excluded from the regulations, special provision having previously been made in their case. These Regulations were revoked by the Births and Deaths Registration Amendment Act, 1947, which made permanent statutory provision in this connection. The amendment requires the Registrar-General to compile a register of all persons who have died while out of New Zealand on service with any of the Armed Forces of His Majesty and who at the time of their deaths were domiciled in New Zealand. Deaths registered in the War Deaths Register were not taken into account in arriving at the number and rate of deaths in New Zealand, nor were deaths of visiting overseas servicemen or prisoners of war in New Zealand. Deaths of New Zealand servicemen which occurred in New Zealand were, however, included.

Registration of Maori Deaths.—Registration of the deaths of Maoris are effected with the Maori Registrars in the various districts set up for this purpose. Statistics relating to the deaths of Maoris are not included in this subsection, and may be found treated fully in Subsection 4 D.

NUMBERS AND RATES.—The following table shows the number of deaths and the death-rate per 1,000 of the mean population during each of the last twenty years.

Year.Number.Rate per 1,000 of Mean Population.
193012,1998.57
193112,0478.35
193211,6838.04
193311,7017.99
193412,5278.50
193512,2178.25
193613,0568.75
193713,6589.08
193814,7549.71
193914,1589.20
194014,2829.24
194115,1469.84
194216,38510.60
194315,44710.04
194415,3639.87
194516,05110.07
194616,0939.70
194715,9049.38
194815,8129.13
194916,0129.06

New Zealand has been noted for many years for its favourable death-rate. In the early history of the country the high proportion of immigrants to total population contributed very materially towards the establishment of a comparatively low death-rate, while the favourable climate also was, and still is, an important factor. The effect of immigration in causing a high ratio of persons in the early adult ages—at which ages mortality experience is most favourable—more than counterbalanced the effect on the death-rate of the hazards inherent in the pioneering activities typical of the economy of the country in those days. The influence of immigration on vital statistics has, however, waned very considerably in the later decades.

The fact that the death-rate is still comparatively very low, despite the older age-constitution of the population, is probably due, inter alia, to improvements in medical techniques, expansion of health services, &c. This progress has been reflected for example, in a relatively low incidence of serious outbreaks of the more important epidemic diseases (which were much more prevalent in the early years of colonization) and in a remarkably low infant-mortality rate.

As observed in the subsection on Births, the general trend of the birth-rate in New Zealand has been downwards for several decades. The initial effect of a falling birthrate on the mortality experience of a population is to lower the death-rate, the age constitution becoming more favourable towards a low death-rate, since there are fewer infants and a relatively higher ratio of persons of the younger adult ages. That this has been a very material factor contributing to New Zealand's low death-rate is obvious; for a death-rate of 7.99 per 1,000—the low point which was reached in 1933—would connote an expectation of life of almost 125 years if it applied to a population of stable age-distribution. Since then, however, the rate increased considerably up to 16.60 in 1942, but, with the exception of, 1945, the trend has again been downward, the 1949 rate being the lowest since 1936.

A factor contributing to the increase in the death-rates during the earlier war period, particularly the male rates, was the absence overseas of considerable numbers of men of early adult years, which, as stated earlier, are the age-groups at which mortality experience is most favourable. It is possible that the very high rates for deaths in the older age-groups during 1942 may be associated with the wartime stresses of that year. Some validity can be given to this view owing to the sharp rise in deaths resulting from diseases of the heart and nervous system. The return of servicemen, from overseas, social security benefits, the absence of any severe outbreak of epidemic-diseases, together with exceptionally low infant-mortality rates, are the principal factors responsible for the decline in the death-rate during the last four years.

The death-rates of males and females for each of the years 1939–49 are shown separately in the next table.

Year.Deaths per 1,000 of Population.Male Deaths to every 100 Female Deaths.Male Rate expressed as Index Number of Female Rate (= 100).
Males.Females.Totals.
193910.108.269.20126122
194010.188.289.24124123
194111.038.699.84123127
194211.809.4710.60119125
194311.368.8110.04119129
194411.328.539.87123133
194511.378.8410.07122129
194610.548.869.70118119
194710.488.279.38127127
194810.148.139.13125125
19499.898.229.06121120

DISTRIBUTION OF DEATHS OVER THE YEAR.—An examination of the total number of deaths registered in each quarter of the period 1939–49 gives the following averages: March quarter, 3,327; June quarter, 3,832; September quarter, 4,480: and December quarter, 3,875.

A classification according to month of death shows that in 1948 the months during which the greatest number of deaths occurred were July, August, and September, with totals of 1,485, 1,585, and 1,469 respectively. Excluding December, a proportion of deaths occurring in that month not being registered till January, February had the least number of deaths 1,036, followed by March and April, with 1,136 and 1,149 respectively.

The lowest number of deaths on any one day, again excluding December, was 24, this number occurring on the 5th March. The greatest number (70) occurred on the 20th June and again on the 3rd August.

AGE AT DEATH.—The deaths registered during the year 1949 are tabulated below according to ago.

Age.Males.Females.Totals.
Under 1 month431317748
1–2 months414283
3–5 months6843111
6–11 months6044104
1 year6252114
2 years412162
3 years302050
4 years131326
5–9 years503787
10–14 years352762
15–19 years8338121
20–24 years10452156
25–29 years8575160
30–34 years11195206
35–39 years156125281
40–44 years179145324
45–49 years268226494
50–54 years413324737
55–59 years541415956
60–64 years8746101,484
65–69 years1,2188392,057
70–74 years1,4151,0332,448
75–79 years1,0981,0622,160
80–84 years8048291,633
85–89 years422510932
90–94 years123203326
95–99 years384280
100 years156
101 years1 1
102 years 11
103 years 11
104 years 11
Totals8,7657,24716,012

The following table indicates the changes that have occurred over a period of fifty years in the age-distribution of persons dying. The movement in the proportions of deaths occurring at the different age-groups is very striking. The results of three main factors are illustrated—viz., health measures, which have achieved an immense saving of young life; the heavy fall in the birth-rate over the period; and the groat increase in the proportion of old people in the community.

Age, in Years.Number of Deaths.Percentage of Total.
1899.1909.1919.1929.1949.1899.1909.1919.1929.1949.
Under 11,8061,6341,1089121,04623.5218.2410.257.416.53
1 and under 55324764653892526.935.314.303.161.57
5 and under 10203194244214872.642.172.261.740.54
10 and under 15158128166166622.061.431.541.350.39
15 and under 202082132182561212.712.382.022.080.76
20 and under 253023192472881563.933.562.292.340.97
25 and under 302993943473041603.894.403.212.471.00
30 and under 352533964112742063.294.423.802.221.29
35 and under 402634294884062813.434.794.523.301.75
40 and under 452663464635183243.463.864.284.212.03
45 and under 502923495176514943.803.904.785.293.08
50 and under 553554005507717374.624.465.096.264.60
55 and under 604504495518289565.865.015.106.725.97
60 and under 654964737281,0041,4846.465.286.748.159.27
65 and under 705667228501,0782,0577.378.067.868.7512.85
70 and under 754647409081,1802,4486.048.268.409.5815.29
75 and under 803766781,0911,2422,1604.907.5710.0910.0913.49
80 and over3916191,4561,8332,9815.096.9013.4714.8818.62
    Totals7,6808,95910,80812,31416,012100.00100.00100.00100.00100.00

During the earlier period covered by the next table the fall in the death-rate was common to all ages and to both sexes. In more recent years, however, there have been some fluctuations in the rates for the higher age-groups, but the 1949 figures again reflect a declining tendency. Of special significance are the low rates recorded in the childhood and early adult life age-groups in 1949 and the high percentage reduction effected during the longer period. The female rate for the various age-groups is almost invariably lower than the male rate. The rapid increase in the death-rate (per 1,000 of population) at successive age-groups is well exemplified.

Year.Under 1.*1 and under 5.5 and under 15.15 and under 25.25 and under 35.35 and under 45.45 and under 55.55 and under 65.65 and under 75.75 and over.

*Per 1,000 live-births in this case.

Males
190178.606.811.893.523.976.1611.9423.1250.59141.67
191163.485.361.912.423.876.2711.0220.8353.22130.58
192153.104.781.852.443.565.559.6119.9646.17128.60
193138.212.831.352.282.774.648.6918.2544.18130.57
194132.552.140.991.982.623.768.7920.6746.31137.85
194926.391.750.581.431.502.626.9118.3545.32113.56
Females
190163.875.501.643.584.726.7010.6219.4443.32127.98
191148.745.371.482.764.344.928.3817.8940.44119.60
192142.314.491.312.343.384.463.0014.8836.81120.23
193125.672.470.971.853.203.816.8415.3636.83122.87
194126.852.040.711.352.053.146.5814.5538.06116.57
194920.981.320.450.731.272.185.5812.5530.54104.49
Both Sexes
190171.406.171.773.554.336.4011.3721.6347.87135.71
191156.315.361.702.584.095.649.8219.5547.74126.13
192147.824.641.582.393.475.108.8517.5941.90124.84
193132.152.651.172.072.984.227.8016.8840.56126.87
194129.772.090.851.652.323.447.6517.6842.20126.76
194923.781.540.521.091.382.406.2515.3737.73108.69

The average (arithmetic mean) age at death of persons of either sex at ten-yearly intervals since 1901 and during each of the last ten years was as follows:—

Year.Males.Females.
190141.6437.68
191146.1742.37
192148.4546.97
193154.1455.48
194058.0259.96
194158.6559.60
194259.1361.20
194358.9261.01
194459.5460.31
194559.2461.76
194660.0361.66
194759.3161.82
194861.6262.33
194960.4362.94

There was a striking upward movement in the average age at death between 1901 and 1940; the last ten years, however, have been marked by fluctuations within fairly narrow limits, although there has been a slight increase over the decade. A noticeable feature is that in the earlier years the age for females was considerably lower than that for males, the margin gradually narrowing until virtual equality was reached in 1927–28, since when the female average age at death has been higher than the male.

EXPECTATION OF LIFE.—Life tables based on the mortality experience of New Zealand, ranging from 1880 to 1922, have been published at various times in previous issues of the Year-Book. In addition, two tables have been constructed by L. I. Dublin, Ph.D., and A. J. Lotka, D.Sc., of the Metropolitan Life Insurance Co. of Now York, from the following data supplied by the Census and Statistics Department: (1) the 1926 population figures, together with the deaths for the years 1925–27; (2) the 1931 intercensal population age-estimates, together with the deaths for the year 1931. The 1931 census was not taken, and the latest investigation was based on the 1936 census combined with the deaths for the years symmetrically disposed about the census year—namely, the five years 1934–38. It should be understood that the New Zealand life tables do not take into consideration the Maori population. The following table shows the (complete) expectation of life at various ages according to the periods for which the life tables have been compiled.

Age.1891–95.1896–1900.1901–05.1906–10.1911–15.1921–22.1925–27.1931.1934–38.
Males
055.2957.3758.0959.1760.9662.7663.9965.0465.46
160.1661.8962.3163.1363.8565.0565.7266.6166.92
260.2661.7462.0762.8463.3464.5165.0965.9166.23
359.7161.0961.4362.1762.6463.8164.3865.1165.44
459.0460.3460.7061.4161.8463.0163.5364.2464.59
558.2959.5459.9160.5861.0162.1762.6663.3563.70
1054.0955.1955.5756.1456.5357.7358.1158.7559.11
2045.4746.3446.7447.2047.6148.6648.9349.6149.89
3037.5437.1938.4738.7839.0339.9840.1540.7840.94
4029.6030.1030.2830.5430.6931.5631.5432.0732.03
5021.8822.3522.4822.6722.7823.5123.3023.7323.64
6015.0615.3315.4015.5115.5416.0315.7916.2216.06
709.539.539.399.389.319.919.679.879.82
805.695.695.295.294.965.335.085.455.35
Females
058.0959.9560.5561.7663.4865.4366.5767.8868.45
161.9963.5763.9764.8265.5967.0367.8768.6469.46
261.9863.3363.7164.5065.1166.4467.2767.8968.76
361.4462.6663.0663.8464.3965.7266.5267.0467.91
460.7761.9062.3263.0563.5764.9065.7166.1867.01
560.0361.0961.5362.2162.7264.0564.8365.3066.10
1055.8256.0957.1357.7558.2659.5060.2360.6761.45
2047.1947.9148.2348.7749.1450.3650.9651.2852.02
3039.3339.7240.0640.4840.5341.7642.1642.4542.98
4031.5831.7331.9532.3732.2633.2333.4733.8034.05
5023.8223.9324.0024.3024.1924.9125.0125.2425.47
6016.5516.5416.6416.7716.7217.2917.2317.3017.49
7010.3710.3710.3110.3110.1110.5710.4910.6310.73
805.885.885.825.825.885.785.755.635.85

The effect of the lowered infant-mortality rate and the efficacy of the health services generally is clearly demonstrated by the figures. The expectation of life at age 0 has risen by 10.17 years in the case of males and by 10.36 years in the case of females during the period covered by the table. Again, the expectation of life at age 5 in the earlier periods was actually greater than at age 0, the difference in the case of males amounting to 3.00 years in 1891–95, whereas in 1934–38 it was less to the extent of 1.76 years. Even at age 20 there has been an increase in the male expectation of 4.42 years between the first and the latest period, and an increase of 4.83 years in the case of females.

A comparison of the expectation of life at age 0 for various countries is now given. In selecting comparable tables from the experience of other countries due regard was had to securing the most recent figures available. The countries selected are for the most part those of similar racial stock.

 Males.Females.

*White population.

New Zealand (1934–38)65.4668.45
Australia (1932–34)63.4867.14
Union of South Africa (1935–37)*58.9563.06
England and Wales (1937)60.1864.40
United States of America, (1946)*65.1270.28
Netherlands (1931–40)65.767.2
Denmark (1941–45)65.6267.70
Sweden (1936–40)64.3066.92
Belgium (1928–32)56.0259.79
Finland (1936–40)54.359.5
France (1947)62.867.7
Switzerland (1939–44)62.6866.96
Canada (1940–42)62.9566.29

STANDARDIZATION OF DEATH-RATES.—Except where specifically stated, all death-rates quoted throughout this section are crude rates—i.e., those ascertained by applying the mean population for the year to the total deaths registered during the year.

In New Zealand the age and sex constitutions of the people have changed very materially within a comparatively short span of years, so that death-rates for recent years relate to a differently constituted population than do death-rates for earlier years. This factor has had a marked influence on the risks—and causes—of dying. In order to eliminate the effect of a changing age constitution from other causes influencing the death-rate, the device of standardization is resorted to. The principle of this method is to compute death-rates on the assumption that the sex and age composition of the population has not varied. A “standard” population is selected, and the mortality experience of any particular year is weighted according to the age-distribution of that standard population.

The standardized death-rates thus calculated for each of a number of countries, or for a number of years for the same country, may then be regarded as indices of the relative mortalities free from the distortion which might arise through differences in their respective sex or age constitutions. New Zealand can no longer be regarded as immature as far as the age-constitution of the population is concerned. A comparison of the relative proportions of population in various age-groups between New Zealand and England and Wales, for instance, shows this country to be very similarly constituted to the relatively much older countries.

A system of standardization of death-rates was introduced some years ago in New Zealand, the age and sex constitution of the population as disclosed at the Census of 1911 being taken as the basis. The following table gives both recorded and standardized death-rates per 1,000 of population (on the 1911 standard population) for each fifth year from 1875 to 1945 and for the year 1949.

Year.Recorded Rates.Standardized Rates.
Males.Females.Totals.Males.Females.Totals.
187516.5615.0715.9219.0315.3617.30
188012.0510.7311.4613.8111.4712.70
188511.519.6710.6713.3810.0612.36
189010.518.689.6612.2610.1111.25
189510.818.899.9112.2610.0711.22
190010.338.439.4311.049.2910.21
190510.188.249.2710.498.619.60
191010.678.639.7110.678.469.62
191510.197.879.0610.197.879.09
192011.119.1510.1510.838.849.89
19259.107.488.308.686.787.78
19309.427.698.578.666.487.63
19358.957.528.257.685.786.78
194010.188.289.247.955.676.87
194511.378.8410.077.965.406.75
19499.898.229.066.864.605.79

Standardized death-rates are computed for New Zealand for a number of causes, and details covering a ten-yearly period have been included in the annual Report on Vital Statistics. The standard population used is that of England and Wales at the census of 1901, in order that the death-rates so calculated may be comparable with those published for these countries.

INFANT MORTALITY.—Over a long period of years, New Zealand has been renowned for its low rate of infant mortality, a fact attributable partly to such matters as climate, virility of the race, comparative absence of densely settled areas, &c., and partly to legislative and educative measures—the latter conducted by the State as well as by various organizations. A great deal of the success achieved in this direction has been due to the activities of the Royal New Zealand Society for the Health of Women and Children. Founded in Dunedin in 1907, this society has since extended its Plunket system throughout New Zealand, and its methods are being adopted to an ever-increasing extent in other countries.

Particulars of deaths of infants under one year of age for each of the years 1939–49 are shown in the following table.

Year.Number.Rate per 1,000 Live Births.
Males.Females.Totals.Males.Females.Totals.
193953236689836.1825.9031.14
194057341799034.0726.1430.21
19415864591,04532.5526.8529.77
194258737796434.0523.0828.71
194355140095135.0327.4331.37
19445784341,01233.5926.4730.12
19456074291,03632.0323.7627.99
19466314621,09329.3122.7126.10
19476244981,12227.2522.7225.04
194856940197025.1618.5921.95
19496004461,01626.3920.9823.78

The success of New Zealand, a country with a reputation for remarkably low rates, in further lowering the level by over 4 per 1,000 in the short space of the five years 1945–49 gives some cause for satisfaction, but if must be remembered that other overseas countries have also experienced record low rates over the last few years, so that the position has not improved relatively. With the distinction of having the lowest infant-mortality rate in the world since the year 1912, it was an unusual experience for this country to occupy second place in 1943 with a rate of 31.4, as compared with 28.6 for Sweden in the same year. In 1944 and 1945 New Zealand again held pride of place, if only by narrow margins, while for the next two years the rates were almost identical. New Zealand's phenomenally low figure for 1948 of 21.95 again gave this country a significant lead in this sphere. The 1949 figure, although still much lower than for all years up to 1948, was slightly higher than in the previous year. It is important to note that, while the figures for Sweden have been reduced in a spectacular fashion during the last ten years, the rate for 1937 being as high as 45.2, by contrast the New Zealand results have been achieved by a steady decline over a long period.

The following table, the figures for which are taken from the Monthly Bulletin of Statistics, issued by the United Nations, shows the favourable position occupied by New Zealand. In the case of the Union of South Africa and New Zealand, the European population only has been taken into account.

Country.Quinquennium.Deaths Under 1 Year Per 1,000 Births.

*Excluding Maoris.

†European population.

New Zealand*1945–4925
Sweden1944–4827
Australia1944–4829
Iceland1943–4731
United States of America1944–4835
Union of South Africa1944–4838
Switzerland1944–4839
Denmark1944–4843
United Kingdom1944–4844
Netherlands1944–4846
Canada1944–4848
Panama1944–4859
Finland1944–4860
Republic of Ireland1944–4866
France1944–4874
Belgium1944–4878
Spain1944–4885
Austria1944–4897
Nicaragua1943–47102
Czechoslovakia1944–48105
Mexico1944–48106
Italy1944–48110
Portugal1944–48113
Hungary1943–47128
Bulgaria1943–47130
Chile1944–48169

The male rate of infant mortality is considerably above the female rate, and this holds almost without exception for each of the four divisions of the first year of life shown in the next table.

Year.Male Deaths per 1,000 Male Births.Female Deaths per 1,000 Female Births.
Under 1 Month.1 and under 3 Months.3 and under 6 Months.6 and under 12 Months.Under 1 Month.1 and under 3 Months.3 and under 6 Months.6 and under 12 Mouths.
194521.853.752.743.6917.231.882.052.60
194621.362.322.283.3516.671.871.332.85
194719.872.182.842.3616.201.872.012.65
194817.552.522.432.6613.950.931.991.72
194918.961.802.992.6414.911.982.022.07

Even when the effect of the male excess among infants born is eliminated by comparing the respective rates for the two sexes, the number of male deaths per 100 female deaths in the first month of life during the five years 1945–49 is found to be 126; between one and three months, 147; between three and six months, 141; between six and twelve months, 124; and for the first year as a whole, 129.

The rates per 1,000 births for the two sexes in conjunction are now given for each of the last five years.

Year.Under 1 Month.1 and under 3 Months.3 and under 6 Months.6 and under 12 Months.Totals under 1 Year.
194519.592.842.403.1627.99
194619.082.101.823.1026.10
194718.082.032.432.5025.04
194815.801.742.222.1921.95
194917.011.892.522.3623.78

Causes of Infant Mortality.—Infants who die in the first year of life may be grouped roughly into two main classes—viz., those dying within one month of birth and those surviving the first month of life but dying before the first anniversary of their birth. Deaths among the first class are due principally to causes operating before the actual birth of the infant. The second group, generally speaking, covers infants who have succumbed to causes arising from post-natal influences such as the various epidemic diseases, faulty feeding, diseases of the respiratory system, &c. The first group naturally presents the greater problem to the infant-welfare worker, while the history of the comparatively rapid decline of the infant-mortality rate in New Zealand is largely an illustration of the effective measures adopted towards combating the post-natal causes of death in infancy.

The next table shows that, whereas in the period 1946–49 the death-rate for children under one month of age was 41 per cent. lower than in the quinquennium 1881–85, the rate for children who had survived the first month of life was only approximately one-ninth as high as in the “eighties.” In other words, whereas formerly over sixty children out of every 1,000 who survived the first month of life died before reaching one year of age, now only seven such deaths occur. While the decline in the under-one-month group has been progressive for some years, it was among infants who had survived the first month of life that the most marked reductions were achieved. In the “thirties,” however, the reduction of this rate was arrested and in the quinquennium 1941–45, an increase was recorded for the first time. For some years it had been considered that any further substantial decrease in the total infant mortality rate would have to be achieved in the under-one-month group. The figures for 1946–49, however, indicate that whereas this group recorded a decrease of 13 per cent. from 1941–45, the one-month-and-over group declined by 29 per cent.

Period.Deaths per 1,000 Births.Deaths between 1 and 12 Months per 1,000 Children who survive 1 Month.
Under 1 Year.Under 1 Month.Between 1 and 12 Months.
1881–188590.6029.7760.8362.70
1886–189084.0927.5756.5258.13
1891–189587.6030.3457.2658.93
1896–190080.0630.3849.6851.24
1901–190574.7730.6444.1345.54
1906–191069.6230.2839.3440.57
1911–191553.6329.2824.3525.05
1916–192048.6228.1620.4621.05
1921–192542.7527.4815.2715.70
1926–193036.7024.8211.8812.18
1931–193531.8822.349.549.76
1936–194031.8322.519.329.50
1941–194529.5320.019.529.72
1946–1949 (four years)24.2217.496.736.84

The accompanying diagram further illustrates the reduction in the infant-mortality rate that has taken place during the last sixty-eight years.

It would appear that on the one hand the diseases that can be combated openly, such as epidemic diseases, respiratory diseases, and diseases due to faulty nourishment, &c. (i.e., diseases of the digestive system), have shown a definite response to the strenuous campaigns launched against them; while, on the other band, many infants are evidently non-viable at birth. More than four out of every five deaths during the first month of life occur within the first week, and over two out of every five on the first day. The following table shows the infant death-rate for subdivisions of the first month.

Year.Under 1 Day.1 Day and under 2 Days.2 Days and under 1 Week.Totals under 1 Week.1 Week and under 2 Weeks.2 Weeks and under 3 Weeks.3 Weeks and under 1 Month.Totals under 1 Month
19458.432.495.4316.351.890.760.5919.59
19468.222.964.9416.121.810.720.4319.08
19478.032.974.5115.511.350.710.5118.08
19486.672.924.1213.711.090.610.3915.80
19498.212.984.0215.211.000.460.3417.01

The following table gives, for each of the last five years, detailed information as to the number of deaths at various periods of the first year of life.

Year.Under 1 Day.1 Day and under 2 Days.2 Days and under 1 Week.1 Week and under 2 Weeks.2 Weeks and under 3 Weeks.3 Weeks and under 1 Month.1 Month and under 2 Months.2 Months and under 3 Months.3 Months and under 6 Months.6 Months and under 9 Months.9 Months and under 12 Months.Totals.
Males
1945176511223617124526524228607
1946199681234513122228494725631
1947192731193523133119653519624
194815782111261382532553525569
194921072110221072219683030600
Females
194513641793411102113372522429
19461455684311762315273226462
19471686083259102120443820498
1948138477122149911432512401
19491515967221081923432618446
Both Sexes
19453129220170282266398967501,036
194634412420776301845437679511,093
1947360133202603223523910973391,122
19482951291824827173443986037970
1949361131177442015414211156481,046

Some remarkable changes are disclosed by the next table, which gives the infant mortality rates for various groups of causes in quinquennial periods commencing with the years 1872–76. If a comparison be made between the averages of the first and last five-yearly periods given—i.e., 1872–76 and 1942–46—it is found that the general infant mortality rate shows a decline of 74 per cent., while even greater decreases are recorded for tuberculosis (98 per cent.), convulsions (99 per cent.), gastric and intestinal diseases (95 per cent.), epidemic diseases (92 per cent.), and respiratory diseases (78 per cent.). The rate for diseases of early infancy shows a decrease of only 36 per cent. in 1942–46 as compared with 1872–76, but the figures for 1947–49 indicate that some considerable measure of success has attended the steps taken to cope with ante-natal conditions. The rate for epidemic diseases still continues to decline, and it is interesting to note that very nearly half the total under this heading in the years 1947–49 were due to whooping-cough, while an additional 25 per cent. were assigned to influenza. During the years 1948 and 1949 there were no deaths of infants from diphtheria and only one death due to scarlet fever.

The increase shown for malformations and the decrease for tuberculosis are probably somewhat less than is indicated by the figures. In the earlier years covered by the table the latter heading included all deaths from hydrocephalus, many of which were no doubt due to congenital hydrocephalus, which is now included among the malformations. A proportion of the deaths from hydrocephalus in the earlier years would also probably be due to meningitis. The following table shows quinquennial average death-rates of infants under one year of age, per 1,000 live births.

Period.Epidemic Diseases.Tuberculosis.Infantile Convulsions.Respiratory Diseases.Gastric and Intestinal Diseases.Malformations.Early Infancy.Other Causes.Totals.
1872–187613.55.59.712.924.21.225.017.3109.3
1877–188110.25.27.512.319.81.421.915.393.6
1882–18869.34.77.911.819.11.225.512.391.8
1887–18918.93.76.310.518.51.324.78.882.7
1892–18969.83.36.611.016.61.424.911.284.8
1897–19016.12.65.610.017.21.526.29.778.9
1902–19065.51.54.19.715.31.327.67.972.9
1907–19115.91.33.37.615.51.926.76.368.5
1912–19163.60.62.25.17.43.926.23.552.5
1917–19213.20.51.94.74.54.326.12.948.1
1922–19261.80.41.34.32.84.822.43.341.1
1927–19311.50.30.53.71.75.019.43.135.2
1932–19361.50.20.63.31.25.017.52.431.7
1937–19411.40.20.23.11.35.517.42.531.6
1942–19461.10.10.12.91.24.616.12.628.7
1947–19490.60.10.12.40.83.813.82.023.6
(Three yrs.)         

Three out of every four deaths of infants under one year of age are due to causes coming within the groups “Early Infancy” and “Malformations,” and premature birth alone is usually responsible for approximately one-third of the total infant mortality.

In accordance with international practice, New Zealand's infant mortality rate represents the number of deaths of infants actually born alive, expressed as a proportion per 1,000 live births. This method, however, takes no account of still-births. Reference has been made in an earlier paragraph to the effect on the infant mortality rate of efforts made towards the reduction of those ante-natal influences which generally cause death to ensue during the early weeks of life. The fact that still-births are also the result of such ante-natal influences should not be lost sight of, and for this and other reasons it is of value to compute rates per 1,000 total births for neo-natal mortality (deaths of infants under one month of age) and still-births in conjunction, as in the following table. In the computation of the rates for numbers inclusive of still-births, the latter are taken into account in both births and deaths.

Year.Still-births.Neo-natal Deaths.Neo-natal Deaths plus Still-births.
Number.Rate.Number.Rate.Number.Rate.
194586522.8472519.141,59041.98
194693121.7579918.671,73040.42
194791119.9281017.711,72137.63
194883418.5269815.501,53234.02
194979617.7774816.701,54434.48

Recent years have shown a definite trend towards improvement in the combined rate, and the figures for 1948 and 1949 are indeed remarkably low.

CAUSES OF STILL-BIRTH.—A still-born child is defined in New Zealand as one “which has issued from its mother after the expiration of the twenty-eighth week of pregnancy and which was not alive at the time of such issue.”

The registration of still-births has been effected in New Zealand since 1913, but no information regarding the causes of still-births was required for registration purposes until 1947. The lack of such information represents a distinct gap in the otherwise excellent records available concerning the loss of infant or potential infant life. Furthermore, as mentioned in an earlier paragraph, the still-birth problem is intimately bound up with that of the neo-natal infant-mortality rate. Any appreciable improvement in New Zealand's infant-mortality rate must almost certainly depend upon the reduction of this neo-natal loss.

To reduce effectively fœtal and maternal losses resulting from still-births, health authorities and medical research workers need considerably more information in regard to the magnitude of the problem and a knowledge of the underlying foetal and maternal conditions associated with still-births.

In the United States of America, Canada, and a few other countries, statistics are already available concerning the various causes of still-births and throw some interesting light on the problem. While the number of countries that register stillbirths and compile statistics thereof is not great, the number is increasing, and numerous classification lists of causes of still-births have been developed, especially in the United States of America.

The subject received considerable attention at the International Commission for Revision of the International List of Causes of Death in 1938. This Commission recommended that all countries which obtain records of still-births should consider introducing a certificate of the causes of still-births.

To enable New Zealand to make its contribution towards international uniformity in this matter, and also to assist in research work in this country, legislation was introduced in 1946 (section 15, Statutes Amendment Act, 1946) requiring the medical practitioner or, if there was no medical practitioner, the midwife in attendance at a confinement where a still-birth occurs to furnish a certificate stating to the best of his or her knowledge and belief the cause of the still-birth. This requirement came into force as from 1st January, 1947.

Provision was made in the certificate for the insertion of information concerning both foetal and maternal causes of the still-birth. Of the 911 still-births registered during 1947, in 82 cases (9 per cent.) the cause was not known or not stated. Fœtal causes only were specified in 342 cases (38 per cent.); maternal causes only in 164 (18 per cent.); while for 323 still-births, or 35 per cent. of the total, there were both fœtal and maternal causes present.

The following table shows in broad classification groups for 1947 (a) the total number of still-births in which fœtal causes were present, and (b) the total number of oases where causes determined in the mother were stated on the certificate.

Causes of Still-birth.Number of Cases.
Males.Females.Total.
(a) FœTAL CAUSES   
Congenital malformations4359102
Placental state613596
Cord conditions8667153
Birth injury7246118
Syphilis in foetus 33
Infection, and other causes11281193
Totals374291665
(b) MATERNAL CAUSES   
Syphilis in the mother 33
Other chronic diseases in the mother11920
Acute disease in the mother538
Abortion induced for non-therapeutic reasons   
Ectopic gestation112
Hæmorrhage, trauma, shock523183
Toxæmias of pregnancy7179150
Infection3 3
Difficult or prolonged labour623799
External causes111223
Other, and ill-defined causes544296
Totals270217487

Apart from the group of miscellaneous causes, which includes such statements as “macerated foetus,” the principal causes of still-birth of those arising in the foetus were conditions in the umbilical cord (23 per cent.). Of causes occurring in the mother, toxæmia of pregnancy was the most prolific (31 per cent.).

Owing to the small numbers involved and impending changes in still-birth, classification no statistics of causes of still-births have been compiled for 1948 and 1949. It is intended that such statistics will be resumed in 1950.

CAUSES OF DEATH.—Since 1908, the classification of causes of death in New Zealand has been on the basis of the international classification initiated by Dr. Jacques Bertillon and used by the principal European and American countries and the Commonwealth of Australia.

The following table shows the numbers of deaths and the death-rates per 10,000 of mean population from certain principal causes, following the abridged international list of causes of death (Fifth Revision, 1938).

The statistics for tuberculosis, cancer, puerperal causes, and violence—causes which are of special interest and significance—are discussed later on in this subsection.

Cause of Death.Numbers.Rates per 10,000 of Mean Population.
1945.1946.1947.1948.1949.1945.1946.1947.1948.1949.
Typhoid and paratyphoid fever379330.020.040.050.020.02
Scarlet fever131 3 0.080.01 0.02 
Whooping-cough81346210.050.010.200.030.12
Diphtheria424920350.260.300.120.020.03
Tuberculosis of the respiratory system4974604414083653.122.772.602.362.06
Other forms of tuberculosis1061008261700.670.600.480.350.40
Syphilis8612011082710.540.720.650.470.40
Influenza531113351450.3300.190.290.25
Measles101614240.060.100.010.020.14
Other infective and parasitic diseases1081121081371010.680.680.640.790.57
Cancer and other malignant tumours2,2132,2682,3152,4532,47213.8813.6713.6514.1713.99
Non - malignant tumours and tumours of unspecified nature53656423460.330.390.380.130.26
Chronic rheumatism and gout26302327240.160.180.140.160.14
Diabetes mellitus3193383283473552.002.041.932.002.01
Alcoholism643660.040.020.020.030.03
Avitaminoses, other general diseases, diseases of the blood, and chronic poisoning2502352252182241.571.421.331.261.27
Meningitis, and diseases of the spinal cord68746179710.430.450.360.460.40
Intracranial lesions of vascular origin1,6361,5971,6571,6751,62310.269.639.779.679.18
Other diseases of the nervous system and organs of special sense1831601421511431.150.960.840.870.81
Diseases of the heart5,6555,7835,7525,6686,00235.4834.8633.9132.7433.96
Other diseases of the circulatory system2942562583062721.841.541.521.771.54
Bronchitis1811531701311281.140.921.000.760.72
Pneumonia and bronchopneumonia5055615456045733.173.383.213.493.24
Other diseases of the respiratory system2191902161931851.371.151.271.111.05
Diarrhoea and enteritis125735756710.780.440.340.320.40
Appendicitis60525137400.380.310.300.210.23
Diseases of the liver and biliary passages123115941241360.770.690.550.720.77
Other diseases of the digestive system3532933183193332.211.771.871.841.88
Nephritis4174514003703752.622.722.362.142.12
Other diseases of the genitourinary system2492092402171841.561.261.411.251.04
Puerperal infection25301616110.160.180.090.090.06
Other diseases of the puerperal state58563240340.360.340.190.230.19
Diseases of the skin and cellular tissue, and of the bones and organs of locomotion33282619230.210.170.150.110.13
Congenital debility, malformations, premature birth, and other diseases of early infancy8178969217648355.135.405.434.414.72
Senility4633233032092062.901.951.791.211.17
Suicide1751661351811711.101.000.801.050.97
Homicide25151019200.160.090.060.110.11
Automobile accidents1211752041811950.761.051.201.051.10
Other accidental deaths4665155006185472.923.102.953.573.09
Cause of death not specified or Ill-denned75 320.050.02 0.020.01
    Totals16,05116,09315,90415,81216,012100.7097.0093.7691.3290.58

The incidence of epidemic diseases has a considerable bearing on the general death-rate. While New Zealand is generally comparatively free from violent outbreaks of the principal epidemic diseases, sporadic recurrences are not uncommon, but the incidence of such diseases during 1949 was unusually low, with the exception of whooping-cough. Diseases of the heart, which account for a high percentage of total deaths, after reaching a record high peak in 1942, have demonstrated a slight declining trend in recent years. The low totals experienced during 1949 in all the degenerative diseases is a substantial factor in the over-all decrease in the death-rate.

TUBERCULOSIS.—The death-rate from tuberculosis of the respiratory system has shown a declining tendency for many years, but the reduction by almost one-third in the space of the five years 1945–49 is a noteworthy achievement. The rate for 1949, 2.06 per 10,000 of population, is a record low rate for this country.

In addition to the 365 deaths from tuberculosis of the respiratory system during 1949, there were 70 deaths from other forms of tuberculosis, comprising—

Tuberculosis of meninges and central nervous system30
Tuberculosis of intestines and peritoneum3
Tuberculosis of vertebral column5
Tuberculosis of genito-urinary system11
Tuberculosis of other organs5
Disseminated tuberculosis16

The following table shows the number of deaths from tuberculosis in 1949, classified according to sex and age-groups. Of those dying from this cause in 1949, persons under the age of 45 years formed 47 per cent.

Age, in Years.Males.Females.Totals.
Under 5171633
5 and under 10235
10 and under 15112
15 and under 20549
20 and under 25111425
25 and under 30102232
30 and under 35151429
35 and under 40172441
40 and under 45161127
45 and under 5024933
50 and under 5525833
55 and under 6026329
60 and under 6537845
65 and under 70301040
70 and under 7528331
75 and under 8011314
80 and over527
Totals280155435

CANCER.—A special report on cancer is issued annually by the Medical Statistics Branch of the Department of Health. Besides a section dealing with cancer as a cause of death there are analyses of returns received from the various cancer clinics established in New Zealand under the auspices of the British Empire Cancer Campaign Society. These returns, together with those of patients treated in the public hospitals of New Zealand, provide for reasonably wide coverage. A system of registration enables a follow-up of each patient to be maintained which will eventually enable survival rates by site, method of treatment, &c., to be compiled. Special articles and statistical tables on the subject of cancer are contained in the 1917 and 1926 issues of the Year-Book, while the 1948 report of the Department of Health contains data covering the twenty-five years from 1924 to 1948.

Cancer is annually responsible for more deaths in New Zealand than can be assigned to any cause other than diseases of the heart. One factor contributing towards the recorded increase in deaths from cancer is the increasing proportion of persons reaching the ages where cancer largely claims its victims. This position has been brought about principally by the gradual amelioration of the one-time scourges of certain epidemic diseases which exacted a heavy toll of human life at the earlier ages.

Tuberculosis may, perhaps, be classified in the group mentioned, as the progressive decline in the death-rate from tuberculosis for very many years is practically uniform with the rise in the cancer death-rate. This is illustrated by the following figures of average death-rates from tuberculosis and cancer for decennial periods.

 Average Death-rates per 10,000 of Population.
Period.Tuberculosis.Cancer.
1880–8912.353.42
1890–9910.625.44
1900–099.106.79
1910–196.998.22
1920–295.699.30
1930–394.1711.17
1940–493.4613.56

The relative movements in the death-rates from cancer and tuberculosis are further illustrated in the following diagram, which shows the rates at five-yearly intervals since 1875 and for 1949. The fall in the tuberculosis rate due to the progress of the health service, and the rise in the cancer rate owing to the increasing age-constitution of the population are clearly portrayed.

In 1949 there were 2,472 deaths from cancer in New Zealand, a proportion of 13.99 per 10,000 of population. Both the recorded and standardized death-rates have shown a slight falling tendency during the last three years.

Year.Number of Deaths from Cancer.Recorded Death-rate.Standardized Death-rate.*

* On basis of age distribution in 1911.

19391,81511.797.87
19401,85812.027.83
19412,02813.188.26
19422,02913.138.07
19432,13113.858.43
19442,18214.028.41
19452,21313.888.30
19462,26813.678.23
19472,31513.658.15
19482,45314.178.50
19492,47213.998.30

The following summary shows the types of cancer returned in the death entries for the year 1949.

Type.Males.Females.Totals.
Mesodermal Tumours   
  Chordoma 11
  Embryoma1 1
  Endothelioma1 1
  Swing's tumour 11
  Fibrosarcoma437
  Leiomyosarcoma 33
  Liposarcoma3 3
  Myosarcoma213
  Osteosarcoma369
  Xanthosarcoma1 1
  Sarcoma161228
  Seminoma6 6
  Wilm's tumour325
Epithelial Tumours   
  Adenoma and cystadenoma 77
  Basal cell carcinoma (Rodent ulcer)415
  Columnar cell carcinoma (Adeno carcinoma)4775122
  Spheroidal cell carcinoma22628
  Squamous cell carcinoma8816
  Encephaloid carcinoma1 1
  Carcinoma1,0009771,977
  Epithelioma161430
  Hypernephroma10818
  Melanoma14923
  Papilloma516
Tumours of Nervous Origin   
  Astrocytoma101020
  Ependymoma 11
  Glioblastoma and Spongioblastoma14418
  Glioma516
  Hæmangioblastoma1 1
  Medulloblastoma325
  Meningioma112
  Neuroblastoma123
  Oligodendroglioma1 1
Teratoma   
  Teratoma617
Lymphatic and Hæmatopoietic Tumours   
  Lymphosarcoma131427
  Multiple myeloma2911
  Reticulum cell sarcoma11718
  Cancer, malignant disease (undefined)222850
    Totals1,2371,2352,472

A summary showing the location of the disease in deaths from cancer during 1949 is as follows:—

Seat of Disease.Numbers.Rates per 10,000 of Population.
Males.Females.Totals.Males.Females.Totals.
Buccal cavity and pharynx4110510.460.110.29
Digestive organs and peritoneum6345441,1787.156.176.66
Respiratory system191342252.160.391.27
Uterus 146146 1.660.83
Other female genital organs 9595 1.080.54
Breast 256256 2.901.45
Male genital organs163 1631.84 0.92
Urinary organs6038980.686.430.55
Skin3221530.360.240.30
Brain3821590.430.240.33
Other or unspecified organs78701480.880.790.84
    Totals1,2371,2352,47213.9614.0113.99

The standardized figures for recent years suggest that cancer, while undoubtedly increasing in numerical incidence, is not doing so out of proportion to the population exposed to the cancer risk. Improvement in diagnosis has been responsible for some of the numerical increase in the recorded deaths from cancer, though this factor has now become more stabilized. A classification according to sex and age-groups is now given.

Age, in Years.Males.Females.Total.
Under 510616
5 and under 10347
10 and under 15156
15 and under 20437
20 and under 25448
25 and under 306511
30 and under 35131427
35 and under 40133548
40 and under 45244367
45 and under 505567122
50 and under 5584101185
55 and under 60105118223
60 and under 65152158310
65 and under 70211193404
70 and under 75236169405
75 and under 80175172347
80 and over141138279
    Totals1,2371,2352,472

Ninety-two per cent. of the deaths from cancer during 1949 were at ages 45 years and upwards, and 58 per cent. at ages 65 years and upwards. Approximately one death in every six of persons who die after the age of 50 years is due to cancer.

PUERPERAL CAUSES.—In point of numbers of deaths, puerperal accidents and diseases do not rank high among causes of death. Nevertheless, deaths from puerperal causes are of special importance and significance. The rate per 1,000 live births in each of the last twenty years is shown in the following table.

Year.Proportion per 1,000 Live Births.
19305.08
19314.77
19324.06
19334.44
19344.85
19354.21
19363.70
19373.61
19384.07
19393.64
19402.93
19413.36
19422.53
19432.21
19442.71
19452.24
19462.05
19471.07
19481.26
19491.02

A survey of the death-rate from puerperal causes since 1872 shows that for a period in the early part of the twentieth century there was a tendency for the rate to decline. Then followed a definite upward movement, culminating in a rate of 6.48 per 1,000 live births in 1920, the third highest on record, this figure having been exceeded only in 1884 and 1885. Comparatively high rates persisted until 1931, since when the decline has been more or less steady. The efficacy of new drugs and methods of treatment is reflected in the extremely low rates recorded in recent years, the figure for 1949 of 1.02 being a new record. This extraordinary low rate has been achieved mainly by a reduction in the number of deaths from septic abortion and puerperal toxæmia, the latter being a cause which has hitherto been particularly resistant to preventive measures. Deaths from accidents of childbirth were also unusually few during 1949.

It is generally conceded that in years of high birth-rates the maternal-mortality rate tends to rise, probably due to the abnormally high proportion of first births in the total of births, upon which the death-rate for these causes is based. In common with most countries for which recent figures are available, the reverse has been the experience in New Zealand during the last three years. Possibly a contributory factor in this reversal has been the rise in the proportion of births taking place in institutions, more particularly in special annexes attached to the larger hospitals, where every facility for the care of the patient is more readily available.

Deaths from diseases and accidents of childbirth for the five years 1945–49 are shown in the following summary.

Group.Number of Deaths.Rate per 1,000 Live Births.
1945.1946.1947.1948.1949.1945.1946.1947.1948.1949.
Post-abortive Infection111210930.300.290.220.200.07
Abortion without mention of Infection652310.160.120.040.0711.02
Ectopic gestation315350.080.020.120.070.11
Hæmorrhage of pregnancy31 130.080.02 0.020.07
Toxæmias of pregnancy1018911120.270.430.200.250.27
Other diseases and accidents of pregnancy1.  20.03   0.05 
Hæmorrhage of childbirth15114560.410.260.090.110.14
Infection daring childbirth14186780.370.430.130.160.18
Puerperal toxæmias121033 0.330.240.070.07 
Other accidents of childbirth8981040.210.220.180.230.09
Other and unspecified conditions of childbirth 1141 0.020.020.080.02
    Totals83864856452.242.051.071.261.02

DEATHS FROM EXTERNAL CAUSES.—Deaths from external causes, apart from suicide, claim approximately 4 per cent. of the total deaths. Deaths from external causes in each of four years at quinquennial intervals are given in the next table.

Cause of Death.Number of Deaths.Rate per Million of Mean Population.
1934.1939.1944.1949.1934.1939.1944.1949.
Homicide20516201331011
Accidental causes—        
  Poisoning8981956511
  Conflagration74171252117
  Burns and scalds2621272418141714
  Anaesthesia, asphyxia, &c.1614121311987
  Drowning1211179510782766160
  Firearms26201213181387
  Falls10110312514868678184
  In mines and quarries1818137121284
  Transport accidents193265231270131172147153
  Injuries by animals55443312
  Fractures (causes not specified)983 652 
  Other11211211912576737970
    Totals662701682762448455438430

The number of deaths recorded from all accidental causes in 1949 was 742, corresponding to a rate of 4.19 per 10,000 of population. By comparison with 1934, there was an increase of 100 in the number of deaths, but the death-rate has decreased by 0.16 per 10,000 of population.

In classifying deaths attributable to transport accidents under the various subheadings shown in the following table, the rule of assignment is that in fatalities due to collisions of railway-trains and electric tram-cars with motor-vehicles, the death is assigned to the railway-train or electric tram-car as being the heavier and more powerful vehicle. In the case of collisions between motor-vehicles and horse-drawn vehicles, the death is assigned to the motor-vehicle.

The number and rate of deaths resulting from railway, tramway, motor-vehicle, and aircraft accidents during each of the last eleven years are as follows:—

Year.Deaths due to Accident.Rate per 10,000 of Population.
Railway.Tramway.Motor-vehicle.Aircraft.Railway.Tramway.Motor-vehicle.Aircraft.
193939521650.250.031.400.03
1940355183180.230.031.180.12
1941405159500.260.031.030.32
19425116125580.330.100.810.38
1943749113970.480.060.730.63
19443611129410.230.070.830.26
19453611104270.230.070.650.17
1946402215730.240.130.950.02
194739918780.230.051.100.05
1948347175240.200.041.070.14
1949287190250.160.041.070.14

Deaths arising out of aircraft accidents fell off steeply after 1945. This was to he expected, since the figures include Air Force accidents in New Zealand as well as civilian casualties. In 1948 the crashing on Mount Ruapehu of a National Airways Corporation plane with the loss of 13 lives was the principal cause of the high figure for civil air transport accidents in that year. New Zealand's worst air disaster occurred in 1949, when fifteen lives were lost in a crash at Waikanae. The figure of 25 deaths is the highest total recorded in a non-war year. The sharp increase in 1943 in deaths due to railway accidents is accounted for by one serious accident near Hyde in Central Otago, which resulted in twenty-one deaths. In 1948 a derailment near Blenheim resulting in the loss of six lives was a substantial contribution to the total in that year.

Deaths from motor-vehicle accidents recorded an appreciable increase up to 1930, but this trend was reversed during the depression years, largely due to a great reduction in the number of motor-vehicles on the roads during that period. With the advent of more prosperous times, the toll of the motor-vehicle again mounted, although, fortunately, not in proportion to the tremendous increase in motor-vehicular traffic on the highways. The 1938 total was the highest ever recorded in New Zealand. An appreciable drop, however, was experienced during the war years on account of there being less traffic on the roads owing to restrictions in the use of motor-spirits and rubber tires. With the gradual resumption of normal traffic since the war, the number of fatalities from motor-vehicle accidents is again tending to increase.

The figures given for deaths from motor-vehicle accidents (which do not include deaths of Maoris) are exclusive of accidents where persons have been killed in collisions between motor-vehicles and trains or trams, these, as stated above, being assigned to the heavier vehicle. For 1949 there were 5 deaths from such accidents, bringing the total number of deaths in cases where a motor-vehicle was involved up to 195. The corresponding figure for 1948 was 181. Further data regarding accidents will be found elsewhere in this volume (see Index). A later section is devoted wholly to statistics of industrial accidents.

SUICIDES.—Suicidal deaths in 1949 numbered 171—males 114, females 57—the death-rate per 10,000 of mean population being 0.97.

Year.Number of Suicidal Deaths.Rate per 10,000 of Population.
Males.Females.Totals.Males.Females.Totals.
1945118571751.520.701.10
1946113531661.370.641.00
194799361351.170.420.80
1948131501811.510.581.05
1949114571711.290.650.97

The following table presents, for annual averages of various quinquennia, the suicide-rate per 10,000 of mean population.

Annual Average duringMales.Females.Both Sexes.
1895–991.480.310.93
1900–041.660.311.02
1905–091.620.341.02
1910–141.830.411.16
1915–191.790.401.10
1920–241.920.461.20
1925–292.170.561.38
1930–342.290.551.44
1935–391.630.571.10
1940–441.440.560.99
1945–491.370.590.98

4 D—MAORIS

IN each of the preceding subsections, Maoris have been excluded from the statistical tables presented. The standard of registration of Maoris is very much below that of the European section of the population of New Zealand. This is due partly to difficulties of language, educational status, &c., and partly to problems of access. This latter difficulty arises from the fact that the greater portion of the Maori population is resident in country districts not so well served with modern facilities as regards transport, medical and nursing services, &c. Consequently, registration of vital facts regarding the Maori race as a whole cannot be maintained at the same high level of accuracy as obtains for the European population.

MAORI BIRTHS.—In the successive Registration Acts special provision was made for exemption from the necessity of registration in the case of births and deaths of Maoris, though registration could be effected if desired. Section 20 of the Births and Deaths Registration Amendment Act, 1912 (now section 60 of the Births and Deaths Registration Act, 1924), empowered the making of regulations to provide for the registration of births and deaths of Maoris. Regulations were made accordingly, and Maori births and deaths became registrable as from 1st March, 1913. The number of Registrars of Maori Births and Deaths in New Zealand is over 250, most of these being in the North Island, where the great majority of the Maori population is located. Every Maori settlement of any size is within reach of one of these Registrars. Maori registrations are entered in a separate register, which does not, however, make provision for as many particulars as is the case with registrations of Europeans.

The number of births of Maoris registered during 1949 was 4,917 (2,510 males, 2,407 females). The Maori birth-rate in 1949 was almost twice the European birth-rate (24.88 per 1,000). Registrations of Maori births in each of the last live years were as follows:—

Year.Number of Maori Births.Rate per 1,000 of Mean Population.
Males.Females.Totals.
19452,3892,2554,64446.09
19463,0072,7695,77656.49
19472,5412,4474,98846.86
19482,5892,3674,95645.09
19492,5102,4074,91743.34

The abnormally high birth-rates recorded for Maoris in recent years, particularly in comparison with the remainder of the population, may be attributed partly to late registrations of hitherto unregistered births. This became particularly noticeable in 1946, and is no doubt attributable in some measure to the extension of family benefits under the social security scheme to cover all children under sixteen years of age, irrespective of the income of the parents. This extension was provided for by the Social Security Amendment Act, 1945, and came into operation on 1st April, 1946.

Of the 5,776 Maori births registered during 1946, no fewer than 1,447, or 25 per cent. had actually occurred before 1945—i.e., over a year before registration. For population purposes, half-castes and persons between half and full blood rank as Maoris; but it is not always possible to ensure that this practice is followed in the registration of births (and of deaths).

MAORI MARRIAGES.—In cases where both parties to a marriage are of the Maori race there is no necessity under the Marriage Act to comply with the provisions of that Act, though the parties are at liberty to take advantage thereof. Considerable inconvenience, however, was found to exist on account of the non-registration of Maori marriages, and a section was inserted in the Maori Land Act, 1909, and re-enacted in 1931, whereby it was laid down that Maori marriages must be celebrated either under the provisions of the Marriage Act or in the presence of a registered officiating minister, but without complying with the other requirements of the Marriage Act. Ministers solemnizing either class of marriage must send returns to the Registrar-general.

A marriage between a Maori and a European must be celebrated under the provisions of the Marriage Act, and does not rank as a Maori marriage.

Returns of 569 marriages in which both parties were of the Maori race were received during the year 1949. The figures for each of the last six years are as follows:—

Year.Under Maori Land Act.Under Marriage Act.Totals.
194442893521
194545776533
194651150561
194746854522
194851840558
194955019569

The number of Maori marriages declined considerably during the earlier war years, reaching a low point in 1943, and although there has been some improvement since, it is still well below pre-war proportions.

MAORI DEATHS.—Registrations of Maori death during each of the last five years have been as follows:—

Year.Number.Rate per 1,000 of Maori Population.
Males.Females.Totals.Males.Females.Totals.
19458657701,63516.9315.5016.23
19468377901,62715.9415.8816.91
19477967421,53814.5414.3514.45
19487896841,47313.9612.8013.40
19497977691,56613.6513.9713.80

The rates for the two sexes are much more nearly equal for Maoris than for the rest of the population, the female rate being indeed higher than the male in some years. The total Maori death-rate has shown considerable improvement during recent years, with a decline from 20.59 in 1941 to 13.40 in 1948, although a small increase was evident in 1949.

Apart from mere numbers by sex, statistics of Maori deaths are not available prior to 1920, but annual tabulations are now made on the bases of age and cause of death. The ages of Maoris whose deaths were registered during the year 1949 were as shown in the following table.

Age, in Years.Males.FemalesTotals.
Under 1228194422
1 and under 580101181
5 and under 10232144
10 and under 15242145
15 and under 20323769
20 and under 25323567
25 and under 30213455
30 and under 35172340
35 and under 40193150
40 and under 45242751
45 and under 50373875
50 and under 55301949
55 and under 60263056
60 and under 65352964
65 and under 70503686
70 and under 75423274
75 and under 80361551
80 and under 85181735
85 and under 9051520
90 and under 9510717
95 and under 100257
100 and over112
Unspecified516
    Totals7977691,566

Causes of Maori Deaths.—With the exception of diphtheria and scarlet fever, epidemic and infectious diseases generally exact a much heavier toll proportionately among Maoris than among the European population, the most noteworthy examples being tuberculosis, particularly of the respiratory system, and typhoid fever. Other diseases of the respiratory system also show much higher rates for Maoris than for Europeans, and the same state of affairs is disclosed for diarrhœal diseases and stomach complaints.

On the other hand, there is a much lower mortality rate among Maoris from certain, diseases which rank high as causes of death among the European population. Principal among these are cancer, heart-disease and other diseases of the circulatory system, nephritis, the group of general diseases which includes diabetes and exophthalmic goitre, and the group of diseases of the nervous system which includes apoplexy and cerebral hæmorrhage. Malformations show lower rates for Maoris than for Europeans, but the indefinite nature of the data in the registration entries covering the deaths of many Maori infants may be partly responsible, as the figures of deaths from malformations and the group “early infancy” taken in conjunction indicate a much higher rate for Maoris from these causes as a whole than for the European population.

A summary is here given showing Maori deaths from the principal causes and croups of causes.

Cause of Death.Number of Deaths.Rate per 10,000 of Mean Maori Population.
1945.1946.1947.1948.1949.1945.1946.1947.1948.1949.
Typhoid fever7712440.690.681.130.360.35
Measles42712290.402.640.090.182.56
Whooping-cough8 1528310.79 1.412.552.73
Diphtheria21108352.080.989.750.270.44
Influenza21371522122.083.621.412.001.06
Dysentery1275751.190.680.470.640.44
Pulmonary tuberculosis29229327620820428.9828.6525.9318.9217.98
Other forms of tuberculosis851027469658.449.986.956.285.73
Cancer55587369755.465.676.866.286.61
Cerebral hæmorrhage33143623323.271.373.382.092.82
Convulsions (under five years)1134341.090.290.380.270.35
Heart-diseases26923225527128126.7022.6923.9524.6524.77
Bronchitis27243121232.682.352.911.912.03
Broncho-pneumonia13017712413117812.9017.3111.6511.9115.69
Pneumonia851028177778.449.987.617.006.79
Diarrhœa and enteritis1148671547111.318.416.674.916.26
Nephritis25241415242.482.351.321.362.11
Senility50464032234.964.503.762.912.03
Violence—          
  Suicide775650.690.680.470.550.44
  Accident65839389946.458.128.748.098.28
  Homicide233180.200.290.280.090.70
Ill-defined or not specified1141612181.090.391.501.091.58
Other causes30128128632629829.8927.4826.8629.6526.27
      Totals1,6351,6271,5381,4731,566162.26159.11144.48133.97138.04

From 1925 onwards information has been obtained as to whether the cause of death has been certified by a medical practitioner or a Coroner's inquest. As an indication of the improvements achieved in the specifying of the causes of deaths of Maoris, it may be said that in 1925, out of a total of 867 deaths, 446 or 51 per cent. were definitely shown to have been certified, while in 1949 the number so certified was 1,462 out of 1,566 registrations, equivalent to 93 per cent.

MAORI INFANT MORTALITY.—As regards infant mortality, the Maori rate is much higher than the European, principally owing to the ravages of epidemic diseases, tuberculosis, respiratory diseases, and diarrhœal diseases. The infant mortality rate for the first year of life was, for the five years 1945—49, 80 per 1,000 births in the case of Maoris, as compared with 25 per 1,000 among European infants. The decrease in the Maori infant mortality rate during the years 1946 and 1947 is more apparent than real as the birth figures on which they are based include a considerable number of late registrations of hitherto unregistered births (see p. 95).

The numbers and rates per 1,000 live births for the last eleven years are given in the next table.

Year.Maoris.Europeans.
Number of Deaths under One Year.Rate per 1,000 Live Births.Number of Deaths under One Year.Rate per 1,000 Live Births.
1939473114.9289831.14
194037287.2299030.21
1941517125.061,04529.77
194242497.9296428.71
194339989.8695131.37
1944461102.261,01230.12
194541388.931,03627.99
194643174.621,09326.10
194736573.181,12225.04
194838076.6797021.95
194942285.821,04623.78

The next table shows for the year 1949 the principal causes of deaths of Maori infants under 1 year, classified according to age.

Cause of Death.Under 1 Day.1 Day and under 2 Days.2 Days and under 1 Week.1 Week and under 2 Weeks.2 Weeks and under 3 Weeks.3 Weeks and under 1 Month.1 Month and under 2 Months.2 Months and under 3 Months.3 Months and under 6 Months.6 Months and under 9 Months.9 Months and under 12 Months.Total
Whooping-cough      4434520
Influenza     1  2317
Tuberculosis     1  21711
Infantile convulsions        1  1
Bronchitis       12429
Broncho-pneumonia  12131012343421118
Pneumonia      32715633
Diarrhœa and enteritis   1  3312171551
Congenital malformations323  11    10
Congenital debility, &c. 12  1 15  10
Injury at birth1055     1  21
Premature birth3094  421   50
Other causes peculiar to early infancy633    14 118
Accident 1   24 31213
Other defined causes21   2336131343
Unspecified or ill-defined  1 1 1 1217
Totals51221932153128839474422

The great achievement in reducing the infant mortality rate for the European population has been accomplished during the period after the first month of life up to the end of the first year. Conversely, the causes of the extremely high Maori mortality rates are to be found in the same period of life. This is indicated in the next table, which contrasts the mortality rates per 1,000 live births for European and Maori infants respectively for the two periods mentioned. Statistics are available for this purpose only from 1930 onwards.

Year.Europeans.Maoris.
Under One Month.One and under Twelve Months.Total under One Year.Under One Mouth.One and under Twelve Months.Total under One Year.
193024.0310.4534.4824.4864.0388.51
193122.699.4632.1514.7180.8895.59
193221.309.9231.2222.2273.2295.45
193322.818.8331.6423.0769.5492.61
193422.869.2532.1117.1176.4893.59
193522.0310.2332.2624.3084.90109.20
193622.318.6530.9622.3287.60109.92
193722.219.0031.2121.6670.5192.17
193824.1511.4835.6330.32122.94153.26
193921.859.2931.1432.0782.85114.92
194022.038.1830.2123.9263.3087.22
194120.009.7729.7726.8598.21125.06
194218.739.9828.7119.4078.5297.92
194321.2710.1031.3718.9270.9489.86
194420.609.5230.1219.3082.96102.26
194519.598.4027.9926.0562.8888.93
194619.087.0226.1018.3556.2774.62
194718.086.9625.0425.4647.7273.18
194815.806.1521.9528.8547.8276.67
194917.016.7723.7822.7863.0485.82

The principal causes of death of Maori infants responsible for the high mortality rates after the first month of life are diarrhoea and enteritis, broncho-pneumonia, pneumonia, and other diseases of the respiratory system.

4 E—TOTAL POPULATION, INCLUDING MAORIS

THE principal reasons for excluding Maoris from the published vital statistics of New Zealand have already been outlined in the preceding subsection. Late registration is another important factor which prohibits the publication in general of Maori data in conjunction with vital statistics for the European population. It is, however, desirable that a complete coverage of the vital statistics for the country as a whole should be available. Furthermore, the introduction of the medical and related benefits under the social security legislation, which covers Maori and European alike, renders it more important that a health picture of the total population in a single category should be presented. There is evidence also, that, as a result of certain information being essential for the claiming of social security benefits, the standard of Maori registration has shown a gradual improvement in recent years.

The statistical data presented in this subsection contains details concerning vital statistics covering the entire population of New Zealand (including Maoris).

TOTAL BIRTHS.—As mentioned previously, registrations of Maori births are somewhat less accurate (although improvement has been manifest recently) than those of the European population. Consequently, in considering the birth statistics of the whole population, allowance must be made for the element of inaccuracy and incompleteness affecting a proportion of the figures.

For instance, owing to the extensive time-lag in the receipt by the Registrar-General of a considerable number of registrations, the statistics of Maori births relate to the number of registrations received during the year, whereas the European figures cover actual registrations effected during the year. The following table shows the numbers and rates of European, Maori, and total births for each of the last twenty years.

Year.Numbers.Rates per 1,000 of Mean Population.
European.Maori.Total.European.Maori.Total.
193026,7972,12428,92118.8330.4119.37
193126,6222,31228,93418.4532.2619.11
193224,8842,74527,62917.1237.2818.09
193324,3342,94827,28216.6338.8417.72
193424,3222,98127,30316.5138.1017.60
193523,9653,25127,21616.1740.3617.42
193624,8373,63028,46716.6443.7918.07
193726,0143,97129,98517.2946.6418.86
193827,2493,69330,94217.9342.3719.26
193928,8334,11632,94918.7346.2020.23
194032,7714,26537,03621.1946.8722.62
194135,1004,13439,23422.8144.7824.06
194233,5744,33037,90421.7345.8423.12
194330,3114,44034,75119.7045.7821.25
194433,5994,50838,10721.5945.3223.01
194537,0074,64441,65123.2246.0924.58
194641,8715,77647,64725.2456.4927.05
194744,8164,98849,80426.4246.8627.63
194844,1934,95649,14925.5245.0926.69
194943,9884,91748,90524.8843.3426.00

The abnormal increase in the number of Maori births shown for the year 1946 is mainly accounted for by the late registration of births which occurred prior to 1946 (see p. 95).

The inclusion of Maoris raises the level of the birth-rate all through the period covered, but in no case does it reverse the trend of the rate on the normal published basis—i.e., the birth-rate of New Zealand, exclusive of Maoris. In an international comparison for the quinquennium 1944–48, the inclusion of Maoris raises New Zealand's position from sixteenth to fourteenth in a total of thirty-three countries covered.

TOTAL NATURAL INCREASE.—The birth and death rates of the European population are not subject to violent fluctuation, and consequently the natural-increase rate —i.e., excess of births over deaths—for this section of the population follows an even trend in the twenty years covered by the next table, with a gradual decline from 1930 to 1936, followed by a steady rise from 1937 to 1941. A temporary decline was experienced during the next two years, with a sharp increase in 1947 and a further decline in 1948 and 1949. The Maori population, on the other hand, evinces sudden changes in both birth and death rates, with a resultant considerable fluctuation in the natural-increase rate, especially in some years where the respective rates exhibit violent changes in opposite directions. The effect of combining the two sections of the populations is to smooth out the variations in the Maori rate of natural increase, and occasionally to reverse the trend of the European rate. The following table shows the numbers gained by natural increase, together with the rate per 1,000 of mean population for each of the years 1930–49.

Year.Numbers.Rates per 1,000 of Mean Population.
European.Maori.Total.European.Maori.Total.
193014,5981,17815,77610.2616.8610.57
193114,5751,29715,87210.1018.1010.48
193213,2011,55314,7549.0821.099.66
193312,6331,78714,4208.6423.559.37
193411,7951,69813,4938.0121.708.70
193511,7481,80413,5527.9222.408.67
193611,7812,02813,8097.8924.468.76
193712,3562,41414,7708.2128.359.29
193812,4951,57314,0688.2218.058.76
193914,6752,34117,0169.5326.2810.45
194018,4892,67221,16111.9529.3612.92
194119,9542,23322,18712.9724.1913.61
194217,1892,59819,78711.1327.5012.07
194314,8642,76517,6299.6628.5110.78
194418,2362,82221,05811.7228.3712.71
194520,9563,00923,96513.1529.8614.14
194625,7784,14929,92715.5440.5816.99
194728,9123,45032,36217.0432.4117.95
194828,3713,48331,85416.3931.6917.30
194927,9763,35131,32715.8229.5416.66

In the twenty years, 1930–49, New Zealand has gained by natural increase of the population a total of 398,787, comprising 350,582 Europeans and 48,205 Maoris.

TOTAL MARRIAGES.—The following table shows the numbers of European Maori, and total marriages celebrated during each of the last twenty years.

Year.Numbers.Rates per 1,000 of Mean Population.
European.Maori.Total.European.Maori.Total.
193011,07541911,4947.786.007.70
19319,81743710,2546.816.106.77
19329,89659610,4926.818.096.87
193310,51055711,0677.187.347.19
193411,25653211,7887.646.807.60
193512,18755712,7448.236.918.16
193613,80864014,4489.257.729.17
193714,36460914,9739.557.159.42
193815,32863115,95910.097.249.93
193917,11567617,79111.127.5910.92
194017,44863618,08411.286.9911.04
194113,31351713,8308.655.608.48
194212,21955612,7757.915.897.79
194311,57944212,0217.534.567.35
194413,12552113,6468.435.248.24
194516,16053316,69310.145.299.85
194620,53556121,09612.385.4911.98
194718,52552219,04710.924.9010.57
194817,19255817,7509.935.089.64
194916,78856917,3579.505.029.23

The fluctuations in the Maori marriage-rate, and hence, to a lesser extent, in the total marriage-rate, cannot be taken at their face value, as elements of Maori psychology play no small part on occasions in influencing the number of Maori marriages registered as distinct from the number actually celebrated. Apart from these factors, the differences observed in the movements of the respective rates are, of course, considerably affected by variations in the application of social and other legislation to the Maori race and the European population respectively.

TOTAL DEATHS.—The effect of including Maoris is to increase slightly the total death-rate for New Zealand, as is seen in the following table.

Year.Numbers.Rates per 1,000 of Mean Population.
European.Maori.Total.European.Maori.Total.
193012,19994613,1458.5713.558.80
193112,0471,01513,0628.3514.168.63
193211,6831,19212,8758.0416.198.43
193311,7011,16112,8627.9915.298.35
193412,5271,28313,8108.5016.408.90
193512,2171,44713,6648.2517.968.75
193613,0561,60214,6588.7519.339.31
193713,6581,55715,2159.0818.299.57
193814,7542,12016,8749.7124.3210.50
193914,1581,77515,9339.2019.929.78
194014,2821,59315,8759.2417.519.70
194115,1461,90117,0479.8420.5910.45
194216,3851,73218,11710.6018.3411.05
194315,4471,67517,12210.0417.2710.47
194415,3631,68617,0499.8716.9510.30
194516,0511,63517,68610.0716.2310.44
194616,0931,62717,7209.7015.9110.06
194715,9041,53817,4429.3814.459.68
194815,8121,47317,2859.1313.409.39
194916,0121,56617,5789.0613.809.34

Although the Maori death-rate is consistently and appreciably higher than the European rate, the inclusion of Maoris does not raise the general death-rate to a substantially higher level. Countries with lower death-rates (in 1948) than New Zealand included Netherlands, 7.4; Denmark, 8.6; Norway, 8.8; and Union of South Africa (European population only), 8.9.

Total Deaths, by Causes.—Numbers and rates for principal causes of death over the five years 1945–49 are given in the following table. A comparison of these figures, which include Maoris, with similar tables for the European and the Maori population separately may be made by reference to page 87 of Subsection 4 C and page 97 of Subsection 4 D respectively.

Cause of Death.Numbers.Rates per 10,000 of Mean Population.
1945.1946.1947.1948.1949.1945.1946.1947.1948.1949.
Typhoid and paratyphoid fever101421770.060.080.120.040.04
Scarlet fever141 4 0.080.01 0.02 
Whooping-cough1614934520.090.010.270.180.28
Diphtheria6359286100.370.330.1500.05
Tuberculosis of the respiratory system7897537176165694.664.283.983.343.02
Other forms of tuberculosis1912021561301351.131.150.870.700.72
Syphilis10013512595830.590.770.690.510.44
Influenza741484873570.440.840.270.400.30
Measles144326530.080.240.010.030.28
Other infective and parasitic diseases1321311311621230.780.740.730.830.65
Cancer and other malignant tumours2,2682,3262,3882,5222,54713.3813.2113.2513.7013.54
Non-malignant tumours55726925510.320.410.380.140.27
Chronic rheumatism and gout30302329270.180.170.130.160.14
Diabetes mellitus3243473323553631.911.971.841.931.93
Alcoholism743660.040.020.020.030.03
Avitaminoses, other general diseases, diseases of the blood, and chronic poisonings2702602502362521.591.481.391.281.34
Meningitis, and diseases of the spinal cord80817796840.470.460.430.520.45
Intracranial lesions of vascular origin1,6711,6131,6951,6981,6559.869.169.409.228.80
Other diseases of the nervous system and organs of special sense2121801561731691.251.020.860.940.90
Diseases of the heart5,9246,0156,0085,9396,28334.9534.1433.3332.2533.40
Other diseases of the circulatory system3002632623142801.771.491.451.711.49
Bronchitis208177201621511.231.001.120.880.80
Pneumonia and broncho-pneumonia7208407508128284.254.774.164.414.40
Other diseases of the respiratory system2342042282071971.381.161.261.121.05
Diarrhoea and enteritis2391591271101421.410.900.700.600.75
Appendicitis64585746450.380.330.320.250.24
Diseases of the liver and biliary passages130121981281400.770.690.540.690.74
Other diseases of the digestive system3763063343393432.221.741.851.841.82
Nephritis4424754143853992.612.702.302.092.12
Other diseases of the genitourinary system2582152452271941.521.221.361.231.03
Puerperal infection29351818130.170.200.100.100.07
Other diseases of the puerperal state63744147490.370.420.230.260.26
Diseases of the skin and cellular tissue, and of the bones and organs of locomotion42373122320.250.210.170.120.17
Congenital debility, malformations, premature birth, and other diseases of early infancy9459991,0499059505.585.675.824.915.05
Senility5133693432412293.032.091.901.311.22
Suicide1821731401871761.070.980.781.010.94
Homicide27181320280.160.100.070.110.15
Automobile accidents1321872311952160.781.061.281.061.15
Other accidental deaths5205865666936203.073.333.143.763.30
Cause of death not specified or ill-defined1891615200.110.050.090.080.11
    Totals17,68617,72017,44217,28517,578104.36100.6096.7693.8493.44

Although the incidence of different diseases as causes of death varies considerably as between the Maori and European sections of New Zealand's population, the only important disease to show a marked influence on the general death-rate by the inclusion of Maoris is tuberculosis. The average death-rate from tuberculosis (all forms) for the five years covered by the above table was 4.7 per 10,000 of mean population, as against 3.1 for the European death-rate. New Zealand has for many years had a comparatively low tuberculosis death-rate for the European section of its population, but when Maoris are included the latest quinquennial international figures available (1935–39) show New Zealand to be seventh out of a total of thirty-one countries. With Maoris excluded, New Zealand's position would be third for the same period.

TOTAL INFANT MORTALITY.—The establishing of the vital statistics of New Zealand on a total basis by the inclusion of Maoris has the greatest influence upon the infant-mortality rate. The infant-mortality rate of the European population of New Zealand held pride of place in the world for many years, and recently has declined to a particularly low level. The Maori rate, on the other hand, always a high one, has not shown any noticeable improvement in recent years. It is also subject to violent fluctuations owing to the ravages of certain epidemic diseases, which have relatively very little effect on the European rate. The European, Maori, and total infant-mortality figures for the last twenty years are given in the next table.

Year.Numbers.Rates per 1,000 Live Births.
European.Maori.Total.European.Maori. Total. 
19309241881,11234.4888.5138.45
19318562211,07732.1595.5937.22
19327772621,03931.2295.4537.61
19337702731,04331.6492.6138.23
19347812791,06032.1193.5938.82
19357733551,12832.26109.2041.45
19367693991,16830.96109.9241.03
19378123661,17831.2192.1739.29
19389715661,53735.63153.2649.67
19398984731,37131.14114.9241.61
19409903721,36230.2187.2236.78
19411,0455171,56229.77125.0639.81
19429644241,38828.7197.9236.62
19439513991,35031.3789.8638.85
19441,0124611,47380.12102.2638.65
19451,0364131,44927.9988.9334.77
19461,0934311,52426.1074.6231.99
19471,1223651,48725.0473.1829.86
19489703801,35021.9576.6727.47
19491,0464221,46823.7885.8230.02

The inclusion of Maoris not only places the intent-mortality rate for New Zealand on a considerably higher level, but also replaces the general downward movement by a much more fluctuating trend.

It also has a considerable effect on the position occupied by New Zealand among the countries of the world. In the quinquennium 1945–49, New Zealand's infant-mortality rate (exclusive of Maoris), with an average of 25, was the lowest of twenty-six countries for which reliable figures were available, whereas the inclusion of the Maori population relegated it to third place, with Sweden in the lead and Australia in second place.

4 F—MORBIDITY

DEATH-RATES are of great value as indicating the relative healthiness of different countries or of different years. The statistics of causes of deaths are of further use as showing the incidence of fatal diseases or accidents, and as indicating in a general way the relative rise or fall in the incidence of diseases over a series of years. For instance, the fall in the incidence of tuberculosis and the increase in cancer (discussed in Subsection 4 C of this section) can be readily traced from the records of deaths attributed to those causes in different years.

In comparisons of healthiness based on death-rates, however, the effect of the advance of medical science in recent years is not taken into account. It is common knowledge that many diseases regarded a few decades ago as incurable now show a fair percentage of recoveries. Similarly, the death-rates in epidemics are in general much lower now than formerly, owing partly to the steps taken to prevent the spread of the disease, partly to the necessity of early notification in most countries, and partly to increased medical knowledge. Again, many diseases seldom or never result fatally.

For the purpose of classification in the Census and Statistics Department, of data collected from the public hospitals, there has hitherto been no international morbidity classification list in existence. This has probably been due to the fact that no country, other than New Zealand, until recent years has compiled hospital statistics on a national basis at least as regards a detailed analysis of the diseases treated. In the field of mortality statistics, the International List of Causes of Death has been the standard classification code for the majority of countries for a considerable number of years. In order to preserve comparability with the mortality statistics, the Department, prior to 1943, used a modification of this List for the classification of its morbidity statistics. It has always been apparent, however, and increasingly so as the science of statistical analysis of disease has progressed, that a classification designed primarily for recording fatal illnesses must inevitably be inadequate for the multitudinous conditions and minor ailments and injuries that seldom or never have a fatal termination, but nevertheless require hospital treatment. In order to overcome this deficiency as far as possible, an adaptation of the “Manual for Coding Causes of Illness According to a Diagnosis Code for Tabulating Morbidity Statistics,” issued by the Public Health Service of the United States of America, was used in 1943 and subsequent years.

Late in 1946 a Committee was set up of representatives of the Royal Australasian College of Physicians, the Census and Statistics Department, and medical officers of the Department of Health to consider how the compilation of morbidity statistics could be further improved.

The Committee realized that the medical officers of hospitals required the assistance of a standard New Zealand nomenclature of disease as a guide in helping them to describe various states of illness in correct and acceptable terminology. This work has since been completed, and has been issued in two parts, Part I comprising an Introduction and Tabular List of Disease and Injury Categories, while Part II consists of a detailed Alphabetical Index of disease entities. This New Zealand classification is being used for the classification of diseases treated in the public hospitals of New Zealand as from 1st January, 1947.

The World Health Organization, at its assembly in July, 1948, adopted a new International Statistical Classification of Diseases, Injuries, and Causes of Death. This is a combined mortality and morbidity classification and replaces the existing international List of Causes of Death, as well as making provision for the classification of causes of sickness. This new International Classification will be used in New Zealand for morbidity statistics as from 1st January, 1950.

In New Zealand certain diseases are notifiable, but beyond this and the statistics of industrial accidents, given in Section 43, practically the only record other than that of fatality is the information ascertainable from the returns of patients treated in public hospitals. Information regarding benefits granted under the Social Security Act is given in Section 26, and the sickness experience of friendly societies' members is mentioned briefly in Section 31. In the absence of full statistics of sickness, information from the sources mentioned is of considerable value.

NOTIFICATIONS OF DISEASES.—Three thousand six hundred and ninety-three cases of notifiable diseases were reported in 1949, exclusive of Maoris, a decrease of 1,026 from the previous year's figure of 4,719. The principal diseases showing a decrease were diphtheria, with a decline of 71 cases; scarlet fever, 68; food poisoning. 55; poliomyelitis, 568; puerperal fever following abortion, 39; and pulmonary tuberculosis, a fall of 139. Notifications of bacillary dysentery increased by 20; influenza by 5, and puerperal eclampsia by 5. These, were the only increases. Notifications of notifiable diseases during 1949 are shown for each month of the year in the following table. Maoris are excluded.

Disease.January.February.March.April.May.June.July.August.September.October.November.December.Totals.
Scarlet fever6770107938475818411610278811,038
Diphtheria6678781010683483
Typhoid and paratyphoid fever9211211 4 2124
Pulmonary tuberculosis10511011488108878712089101891191,217
Other tuberculosis142021181621212514323320255
Meningococcus meningitis122312310155338
Acute poliomyelitis9463813318109658910346
Pneumonic influenza       18 2314
Erysipelas1112179141713141110139150
Puerperal fever—             
  Following childbirth84524614222747
  Following abortion10 4321 3344 34
Eclampsia682676311686978
Tetanus11123 2 421 17
Hydatids22411214342127
Trachoma 1 1  1     3
Ophthalmia neonatorum1     1 12  5
Lethargic encephalitis2     1     3
Food poisoning114217 221512 39104
Bacillary dysentery4492 2551119172116
Amœbic dysentery34752656311649
Undulant fever1 324  4584 31
Lead poisoning  11  1     3
Malaria1111 111 11 9
Anchylostomiasis        1  12
    Totals3573524042792752472983092953172752853,693

The following were the notifications of principal diseases among Maoris during 1949 and 1948, the latter being shown in parentheses: Diphtheria, 6 (12); typhoid and paratyphoid fever, 56 (27); pulmonary tuberculosis, 476 (404); other tuberculosis. 61 (62); meningococcus meningitis, 8 (6); hydatids, 16 (6); trachoma, 8 (14); bacillary dysentery, 39 (59); other, 43 (68); total, 713 (658).

The relative immunity of the Maori race to scarlet fever is shown by the figures of notifications for this disease. In the year 1948 there were 4 cases of scarlet fever reported in the Maori population, as compared with 1,106 in the remainder of the community, and in 1949, with 1,038 cases in the European population, 11 Maoris were reported as having contracted this disease.

A quinquennial summary of notifications (exclusive of Maori notifications) of certain principal diseases is now given.

Disease.1945.1946.1947.1948.1949.
Scarlet fever5,0331,4548661,1061,038
Diphtheria9961,57750615483
Typhoid and paratyphoid fever31491064024
Pulmonary tuberculosis1,7221,5301,3961,3561,217
Meningococcus meningitis9887423938
Acute poliomyelitis14112130914346
Erysipelas248193185167150
Puerperal fever and septic abortion17514215913881

Meningococcus Meningitis.—Although epidemics of this disease are common in many countries, New Zealand is singularly free from severe outbreaks. The last noticeable epidemic was in 1943, when 434 cases were reported. In 1944 there were a further 135 cases, but since that year the annual number notified has rapidly decreased, there being only 38 cases in 1949.

Scarlet Fever.—Scarlet fever no longer causes many deaths, but epidemics of the disease in a non-fatal form are not infrequent in New Zealand. The last severe outbreak commenced in the latter half of 1943, continued right through 1944 with a peak incidence of 999 cases in July. A high level of notifications was maintained during 1945, with a further peak of 655 cases in May of that year.

Diphtheria.—The last major epidemic of diphtheria occurred in 1917 (5,458 cases) and 1918 (5,539 cases). Incidence was comparatively high in 1945 and 1946, with 996 and 1,577 notifications respectively, but the 1947 figure of 506 was more in keeping with the average experience. During 1948 and 1949, the number of notifications of diphtheria was remarkably low, the 1949 figure of 89 cases setting a new low record for New Zealand. The policy of immunizing school-children and pre-school children is an important factor in this connection. There were 5 deaths from diphtheria in 1949, giving a case-fatality rate of 6.0 per cent. The incidence of diphtheria is much greater in the North Island than in the South Island, and in 1949 the North Island with a little more than two-thirds of the population, had eleven-twelfths of the cases. The Dunedin Health District is remarkable in that no case of diphtheria has been notified in the three years 1947–49.

Venereal Disease.—In the early war years the incidence of venereal disease increased considerably but after 1941 there was an appreciable decrease. This trend was not sustained, however, and a new peak for gonorrhœa was reached in 1946, while the incidence of syphilis also increased substantially. The 1947 and 1948 figures for gonorrhœa showed some improvement, but an increase of nearly 11 per cent. over the previous year was recorded in 1949. New cases of syphilis rose very steeply in 1948, but there was a considerable reduction in 1949. The following table shows the number of persons seen for the first time at the venereal-disease clinics in the four main centres of Auckland, Wellington, Christchurch, and Dunedin, during each of the years 1945–49, and found to be suffering from gonorrhœa or syphilis.

Gonorrhœa.Syphilis.
Males.Females.Total.Males.Females.Total.
19457625421,30411468182
19461,1574151,57215268220
19471,1063901,49610789196
19489933601,353161111272
19491,1043961,500107107214

Tuberculosis.—With an intensification of case-finding by all tuberculosis workers in recent years, the position regarding notification of tuberculosis has improved to a degree that enables a reasonable picture of the disease to be presented as it affects this country. From a study of the returns over the last few years, there is reason to believe that the annual increase in notifications of the disease has reached stability, and that an addition of approximately 250 cases (including Maoris) per year in the national total of notified cases can be expected. The Department of Health is continuing its efforts to reduce both incidence and mortality. The corps of District Health Nurses available for tuberculosis case-finding work has been increased, and hospital clinics in the charge of chest specialists have now been provided to give a wider coverage. The responsibilities of the Department of Health in case-finding and domiciliary care are being co-ordinated with that of the Hospital Boards, which are responsible for diagnosis and treatment.

The medical officers of the Department of Health assist the District Nurses in the examination of contacts and arrange tuberculin tests and x-ray examinations. One mass miniature x-ray unit has been in operation for over two years in Taranaki, a unit is established in Christchurch and other units are available for Auckland, Wellington, and Dunedin. Special investigation by these methods are directed towards those groups of the population which are likely to show a high incidence of the disease, and this type of work is being extended. Cases that are found to be tuberculosis, or suspected of having the disease, are referred to hospital chest clinics, which assess the diagnosis and prescribe treatment. The supervision of “after care” on discharge from a hospital or sanatorium then becomes the joint responsibility of the District Nurse and the hospital clinic staff.

As a contribution to prophylaxis, health education is being stimulated, and B.C.G. vaccination against tuberculosis has been commenced in hospital staffs and contacts and will be extended to other suitable age-groups of the population on a voluntary basis.

The following figures reflect the work performed by the district nursing service and school medical officers in this connection during the five years 1945–49:—

 1945.1946.1947.1948.1949.
New tuberculous homes brought under control1,8491,7061,4671,270 
Total number of homes under control8,9919,5959,0709,2839,687
Number of new contacts brought under supervision during year2,7742,9152,275 5,423

Total number of contacts under surveillance during year—

Found to be tuberculosis272
Removed from list3,238
Remaining under supervision23,103
      Total26,613

The Department of Health has established a Tuberculosis Register, which attempts to classify all known cases, and a clearer conception of the type, form, and extent of the disease is being obtained as workers become more accustomed to provide the necessary information. The number of cases on the Register (inclusive of Maoris) at 31st December, 1949, was 10,048 of which 8,794 were pulmonary, 947 non-pulmonary, and 307 mixed pulmonary and non-pulmonary. The number of new cases notified in 1949 was 2,009 of which 1,472 were European and 537 Maori. Of the European cases, 1,217 were pulmonary and 255 non-pulmonary, and in the Maori cases the figures were 476 and 62 for pulmonary and non-pulmonary respectively. Some of these cases have proved non-tuberculous and have been deregistered.

The known incidence for the European population is 4.12 per 1,000 of population, while for the Maori population it is 22.88 per 1,000 of Maori population. The combined race incidence for 1949 is 5.34 per 1,000 of total population.

Acute Poliomyelitis.—Between November, 1947, and July, 1949, New Zealand experienced its fourth major epidemic of poliomyelitis in a space of thirty-four years. Prior to 1916 nothing more than sporadic cases had been recorded in this country Each of these four outbreaks began in the early summer and the first three (1916, 1924–25, and 1936–37) began to die away with the approach of winter although the 1936–37 epidemic was rather more drawn out than the two earlier ones. The latest outbreak, however, first appeared in November, 1947, and continued with undiminished intensity throughout 1948, and only died down in the middle of 1949, although it was less intense than in previous epidemics.

In the period November, 1947, to July, 1949, the number of vases and suspected cases notified was 1,720, of which 1,406 proved positive. Of these 805 showed evidence of paralysis or paresis and there were 77 deaths from the disease.

The attack rate varied considerably in different parts of the country and the incidence in the New Plymouth Health District (22.43 per 10,000 of population) was markedly higher than elsewhere. The epidemic took approximately one year to travel from Auckland to Dunedin, although air transport covers the distance in a few hours. The outbreak in Wellington was unusual in that it was almost entirely a winter outbreak, whereas elsewhere the incidence showed a lessened intensity in the winter months.

As indicated earlier, there were differences between the four major epidemics of poliomyelitis in respect of their duration, and this applies also to their intensity, severity, and distribution by age-groups.

Taking the duration of the epidemics as the periods during which the number of eases continuously reached double figures in any month, the duration and monthly incidence of the four epidemics is compared in the following table:—

Epidemic.Month of Epidemic.
1.2.3.4.5.6.7.8.9.10.11.
19161193193201674419     
1924–2559224340366120542210   
1936–378570531072441639530141410
1947–491710955437696117648585117
Epidemic.Month of Epidemic.
12.13.14.15.16.17.18.19.20.21.Totals.
1916          988
1924–25          1,195
1936–3711         896
1947–49778069946684331810111,406

The next table shows the attack rates for the different age-groups for the 1947–49 epidemic:—

Age-group.All Cases.Paralysed Cases.
Cases.Rates per 10,000 in Age-group.Cases.Rates per 10,000 in Age-group.
0–4 years29813.81858.5
5–9 years41624.521212.3
10–14 years24818.41178.7
15–19 years1329.7835.9
20 years and over3122.62081.7
    Totals1,4067.678054.38

The youngest age-group (0–4 years) which in 1916 and 1924–25 suffered the highest attack rate has now dropped to third place. The incidence in the higher age-groups was greater than in previous epidemics.

The number of deaths in the 1947–49 epidemic was 77, of whom 42 were males and 35 females. These numbers included 5 Maori males and 1 Maori female. The case mortality for all cases was 5.1 per cent. for males, 5.9 per cent. for females, with a combined rate of 5.5 per cent. For paralysed cases the mortality rates were: males, 9.3 per cent.; females, 9.9 per cent.; combined, 9.6 per cent. The highest mortality rates were in the higher age-groups, particularly in females over thirty years of age.

The foregoing information has been extracted from the annual report of the Director-General of Health for the year ended 31st March, 1950 (parliamentary paper H–31), which deals with the matter in much greater detail than is possible in this summary.

Information as to case-fatality in regard to the first three diseases mentioned in the table on page 105 is now given for each of the last eleven years.

Year.Scarlet Fever.Diphtheria.Typhoid and Paratyphoid Fever.
Cases notified.Deaths.Case-fatality.Cases notified.Deaths.Case-fatality.Cases notified.Deaths.Case-fatality.
   Per Cent.  Per Cent.  Per Cent
193948020.42517244.646146.56
194035710.28367154.095961017
194133820.59383174.4356712.50
194245710.22542244.4366812.12
19431,19620.17830323.867234.17
19447,612270.35693304.333538.57
19455,033130.26996424.223139.68
19461,45410.071,577493.1149714.29
1947866  506203.9510698.49
19481,10630.2715431.954037.50
19491,038  8356.0224312.50

In diseases of this nature, comparatively wide year to year fluctuations in the numbers affected are inevitable.

As indicated earlier, these figures do not include Maoris. There were 11 notifications of scarlet fever among Maoris in 1949, 6 of diphtheria, and 56 of enteric fever (40 of typhoid and 16 of paratyphoid).

PUBLIC HOSPITALS: PATIENTS TREATED.—The public hospitals to which the following statistics relate include all hospitals under the control of the various Hospital Boards; several hospitals which are also old people's homes; special infectious diseases hospitals; the various tuberculosis institutions and special sanatoria; and such public maternity hospitals as also have provision for emergency general cases. Special military hospitals, and additions made to hospitals to accommodate military patients only, were also included during the war years. All St. Helens Hospitals, private hospitals, and solely maternity hospitals, are excluded. Out-patients are not covered by the statistics, which, however, relate to all inpatients—whether European or Maori. Inmates of old people's homes or infirmaries controlled by the Hospital Boards, for whom hospital benefits under the Social Security Act are payable for treatment received in such homes, are included in the statistics of patients treated.

During the year 1949 the total admissions to public hospitals in New Zealand numbered 152,264. There were 8,489 patients in hospital at the beginning of the year, the total cases dealt with during the year thus being 160,753, equal to 855 per 10,000 of mean population, including Maoris. In other words, the equivalent of one person out of every twelve in New Zealand received some-degree of treatment in public hospitals in 1949, although, of course, the total of cases mentioned includes an unknown number of multiple admissions of the same persons.

The following table shows for each of the last eleven years the total number of patients treated, and the proportion of so treated population.

Year.Total Patients treated.Rate per 10,000 of Mean Population.
1939112,502690
1940127,839781
1941139,486855
1942171,4831,046
1943160,118979
1944160,990972
1945163,653966
1946163,558929
1947160,426890
1948155,418844
1949160,753855

From 1932 to 1942 there was a continuous and substantial increase in the number of patients treated, with the one exception of 1937, when a small decrease of 200 was recorded. In 1938 the epidemic of measles with its accompaniments of ear troubles and respiratory diseases (chiefly broncho-pneumonia and pneumonia) accounted for nearly 6,000 of the 9,000 increase of that year. The further gain of 5,000 in 1939 cannot be attributed specifically to any disease or group of diseases, and it seems probable that some of this increase may have had its origin in the introduction of the hospital benefit under the social security scheme. This benefit, particulars of which may be found in Section 26, came into operation on 1st July, 1939.

The tremendous increases during the next three years can probably be attributed partly to the same cause, but the great majority of these increases were due to the admissions of Armed Services personnel, particularly in 1942, when the number of persons under arms in New Zealand was greatly increased consequent upon the entry of Japan into the war. In general, all military personnel ill over forty-eight hours were transferred to hospital, and outbreaks of such minor epidemic diseases as measles, chicken-pox, mumps, &c., commonly associated with military camps, would result in a great number of persons entering hospital who, in normal times, would be treated in their own homes. The great bulk of such cases were transferred to emergency wards of public hospitals adjacent to the camps.

The figures would also include a substantial number of patients who entered hospital for remedial treatment to enable them to be passed fit for military service. Members of the services returned from overseas who were admitted to public hospitals for further treatment are also included. The decrease in the total for 1943 no doubt reflects the beginning of the decline in the numbers of mobilized forces in New Zealand. Certain statistical data relating to Armed Forces personnel treated in hospitals are given on pages 101–102 of the 1947–49 issue of the Year-Book.

It is probable that there would have been a further decrease in the number of hospital patients in 1944 but for the severe epidemic of scarlet fever experienced in that year.

Hospital staff problems necessitating the closing of wards in some cases and the introduction of a system of waiting-lists for non-urgent eases kept the numbers of in-patients down in the immediate post-war years. The further substantial decrease in 1948 was at least in part attributable to the change in policy whereby infants born in hospital without sickness, and in some cases, normal confinements were excluded from the figures of patients treated. It is difficult to explain the rise in total patients in 1949, but it is possible that the improving staff position and the closing of some private maternity hospitals and the opening of maternity annexes at the public hospitals may have contributed to this reversal of the trend of recent years.

Information concerning the members of the Armed Forces treated in public hospitals was not collected in 1940 (the first year of the war), but in each of the following four years the number discharged from, or dying in, these hospitals was as follows: 1941, 13,660; 1942, 44,435; 1943, 22,939; 1944, 12,378. Seventy-two females were included in the total for 1941, 523 in 1942, 1,278 in 1943, and 720 in 1944.

Condition on Discharge.—Of the 155,418 persons treated as in-patients in public hospitals in 1948, 81,483 were discharged as recovered, 47,459 as relieved, and 10,965 as unrelieved. Deaths in hospital numbered 7,352 and 8,489 patients were still in hospital at the end of the year. The tabulations for 1949 had not been completed when this section was prepared.

The numbers of admissions, discharges, and deaths for each of the last five years available were:—

Year.Admissions.Discharges.Deaths.Total Discharges and Deaths.
Recovered.Relieved.Unrelieved.
1943152,37989,84946,9286,9707,372151,119
1944151,99191,02944,7528,2167,478151,475
1945154,41389,48048,2298,8197,939154,467
1946155,07490,23348,0948,6397,710154,676
1948146,94181,48347,45910,9657,022146,929

Commencing with the year 1947, provision was made on the statistical returns received from public hospitals, for the condition on discharge of the patient to be stated for each disease treated, while the patient was in hospital. In previous years the general condition of the patient on discharge was stated. The figures in the above table for the year 1948 therefore relate to the condition on discharge of the principal disease treated and are not strictly comparable with those for earlier years. For this reason also, the number of deaths in this table for 1948 does not compare with the figure given on the previous page which relates to the actual total deaths that occurred in hospital during the year. Figures for 1947 are not at present available.

The following percentage analysis of total cases dealt with during each of the five years is of interest.

Year.Discharged asDied.Remaining at End of Year.
Recovered.Relieved.Unrelieved.
194356.1229.314.354.605.62
194456.5427.805.104.655.91
194554.6829.475.394.855.61
194655.1729.405.284.715.44
194852.4330.547.054.525.46

Sexes of Patients.—For many years males considerably outnumbered females among hospital patients. In 1932, for the first time, and in each of the three following years, females were in the majority. From 1935 onwards, however, the proportion of males again showed a tendency to increase. This excess of male patients became especially pronounced in the figures for 1940 and the succeeding three years, reflecting the large number of military patients admitted to hospital during these years. The peak in this connection was reached in 1942, in which year 101,279 males and 62,487 females were discharged from, or died in, public hospitals. By 1944, the number of males had fallen to 76,306, a decrease of 24.7 per cent., but the number of females involved had risen to 75,169, an increase of 20.3 per cent. From 1944 to 1946 the male total was fairly consistent, but females have tended to increase in numbers, probably affected to a certain extent by the increased facilities offered by public hospitals for normal maternity cases. In 1948 there was a sharp decline in the male total only. The death-rate is invariably higher among male than among female patients, chiefly due to a higher average incidence of serious types of diseases and of accident cases among male patients. The large number of military personnel admitted to hospital for comparatively minor complaints, however, resulted in a greatly decreased male death-rate during the four years ended in 1943, and in 1942 the female death-rate exceeded that for males. The decline of the numbers of men in the Armed Forces stationed in New Zealand from 1943 onwards would result in the proportion of minor cases treated in hospital falling considerably. This factor, combined with a greater number of seriously wounded men returning from overseas probably accounted for the increase of the male case-fatality rate in later years as compared with 1942.

Year.Discharged and Deaths.Deaths.Death-rate per 1,000 Cases.
Males.Females.Males per 100 Females.Males.Females.Males per 100 Females.Males.Females.
193851,09150,5641043,5832,3761517047
193954,17252,5131033,3782,1901546342
194064,75356,5021153,5012,3241515441
194171,37461,1261173,8362,6751435444
1942101,27962,4871624,1872,8861454146
194382,10069,0191194,2953,0771405245
194476,30675,1691024,4003,0781435841
194577,94776,5201024,6333,3061405943
194676,44378,233984,3603,3501305743
194868,85478,075884,2943,0581406239
194970,67781,293874,3103,2851316140

Ages of Patients.—The ages of patients who were discharged from or who died in public hospitals during 1948 were as shown in the following summary. The proportions of the population at each group which the discharges and deaths represented are also given.

Ages of Patients, in Years.Males.Females.Total.Proportion per Cent. of Total Population.
Males.Females.Total.
Under 59,7067,08516,7919.046.897.99
5 and under 105,6444,1259,7696.594.965.79
10 and under 154,0472,9456,9925.904.445.18
15 and under 2510,81516,57627,3917.7212.139.90
25 and under 358,41318,24526,6586.1813.039.65
35 and under 457,27910,40217,6815.648.376.98
45 and under 556,3976,14712,5446.576.236.40
55 and under 656,4285,39811,8267.996.537.25
65 and over10,0597,08617,14512.838.4510.57
      Totals (including unspecified)68,85478,075146,9297.468.507.98

With the exception of the war years, there has been a pronounced excess of females over males in the age-groups 25–34 and 35–44. This is attributable to the fact that these two age-groups contain the majority of the very large numbers of women admitted to public hospitals for normal confinement or for treatment of diseases and accidents of pregnancy, labour, and the puerperal state. There is an increasing tendency for women to be confined in public hospitals. This is evident from the above table, in spite of the fact that for some hospitals normal child-birth cases were excluded from the returns received during the year 1948.

In 1939 the number of female patients in the 25–34 age-group was 11,442, and the proportion of total female hospital population was 8.85 per cent. The corresponding figures for 1948 were 18,245 and 13.03 per cent.

Principal Diseases.—A summary is now given of the principal diseases treated in public hospitals during the year 1948, the latest year for which detailed statistics of diseases treated are available. All figures given (including deaths) are inclusive of Maoris.

It should be noted that the disease or condition for the treatment of which a patient is admitted to hospital is not necessarily that which would rank as the cause of death in the death statistics. Cystitis, for instance, ranks comparatively high in hospital cases as the condition immediately affecting the patient, but is frequently only the consequence of some more important disease, which would take precedence over cystitis in the statistics of causes of death. As indicated earlier, the hospital returns now show each disease for which the patient was treated during his stay in hospital, but the classification for statistical purposes has been made on the basis of the principal disease for which he was admitted, regardless of what other diseases may have been present or developed during the stay of the patient in hospital. In the death statistics, on the other hand, the primary cause of decease is of paramount importance. In the hospital statistics a case admitted on account of the fracture of any bone is treated and classified as “fracture.” Should the patient die, however, the death would be classified in the mortality statistics according to the cause of the fracture—e.g., motor-car accident, accidental fall, &c. The morbidity code, with a few exceptions and a considerable extension of the accident group, follows the mortality code fairly closely, and a comparison of the morbidity and mortality statistics can be obtained without difficulty.

SUMMARY OF PRINCIPAL DISEASES TREATED IN PUBLIC HOSPITALS DURING 1948

Diseases.Total Deaths Registered.Total Cases in Public Hospitals.Deaths in Public Hospitals.*
Number.Proportion of Total Deaths.Proportion of Total Cases in Public Hospitals.

* Relating to condition on discharge of patient, in respect of principal disease treated.

† See letterpress ante.

‡ Excluding leukæmia, aleukæmia, and Hodgkin's disease.

    Per Cent.Per Cent.
Typhoid and paratyphoid fever7797100.008.86
Meningococcus meningitis1441964.2921.95
Measles6199350.001.51
Scarlet fever4537125.000.19
Whooping-cough34108720.596.48
Diphtheria6145583.333.45
Influenza731,0062230.142.19
Erysipelas21682100.001.19
Acute poliomyelitis551,0524683.644.37
German measles 171   
Mumps1241100.004.17
Pulmonary tuberculosis6163,09332352.4410.44
Tuberculous meningitis44583784.0963.79
Other forms of tuberculosis869315968.606.34
Venereal diseases957423435.794.58
Septicæmia (non-puerperal)8411229.27
Hydatids15158853.335.06
Cancer2,5224,2011,11744.2926.59
Leukæmia and aleukæmia951606669.4741.25
Non-malignant tumours252,669281.05
Diabetes3551,2517320.565.84
Exophthalmic goitre436651125.581.65
Diseases of the spinal cord60411016.6724.39
Intracranial lesions of vascular origin1,6981,56779446.7650.67
Diseases of the heart5,9394,6161,57126.4534.03
Diseases of the arteries24250514158.2627.92
Bronchitis1622,06211369.755.48
Broncho-pneumonia5471,48524945.5216.77
Pneumonia2651,89610539.625.54
Pleurisy365251027.781.90
Asthma441,0393170.452.98
Ulcer of the stomach and duodenum1521,4837851.325.26
Diarrhœa and enteritis1101,6955751.823.36
Appendicitis465,4222860.870.52
Hernia, intestinal obstruction1273,2389776.383.00
Diseases of the liver (excluding hydatids)671313450.7525.95
Diseases of the gall-bladder and biliary passages222,164492.26
Peritonitis4222125.41
Nephritis38553013434.8125.28
Urinary calculi20701315.000.43
Diseases of the bladder10596162.68
Diseases of the prostate1171,0689379.498.71
Diseases of the female genital organs64,822466.670.08
Septic abortion9285555.561.75
Other puerperal diseases and accidents (including normal childbirth)5619,2683460.710.18
Diseases of the skin87,480230.31
Osteomyelitis7965685.710.62
Congenital malformations2271,53311048.467.18
Diseases of early infancy6781,17322933.7819.52
External causes88818,01834739.081.93
Other diseases1,24744,90076861.591.71
      Totals17,285146,9297,02240.624.78

Chapter 5. SECTION 5—PUBLIC HEALTH, HOSPITALS, ETC.

5 A—PUBLIC HEALTH

DEVELOPMENT OF PUBLIC HEALTH SERVICES IN NEW ZEALAND.—Before 1872 there was no public health service in New Zealand. A few local authorities appear to have exercised a crude form of negative sanitary government, but otherwise little seems to have been done. Certainly no attempt was made to cope with outbreaks of diseases, even when they assumed epidemic proportions.

In 1872 the first Public Health Act became law. Under it a Central Board of Health was sot up in each province and power was given to each Central Board to set up Local Boards of Health as required.

The Central Boards each consisted of the Provincial Superintendent, the Provincial Executive Council, and three other members. They acted mainly in a supervising capacity and took little active part in initiating or controlling preventive health measures. They were required to make periodical reports to the Governor of the colony, but, in fact, few were made.

The local Board of Health was usually the local authority for the area concerned. The Board was usually financed from rates, though if appointed by the Central Board it could be financed by parliamentary appropriation. In general its function was to administer the Public Health Act in its district, and it had power to appoint a medical advisor who was in all cases a part-time officer.

The abolition of the provinces in 1876 brought the disappearance of the provincial Central Boards of Health and the establishment of one Central Board of Health for the whole colony. Otherwise there was practically no change in the system which had existed since 1872.

The first period of public health administration in New Zealand came to an end in 1900. It is doubtful whether at any time during these twenty-eight years the administration of the 1872 Act and the later consolidating Act of 1876 was marked by much energy or thoroughness. Local Boards were hampered by lack of finance and by lack of zeal and knowledge. The powers of their Medical Officers (where appointed) were limited, and often the advice given by these officers was disregarded. The incidence of typhoid fever, a good index to the sanitary standards of a community, remained high throughout the whole of this period.

In 1900 the outbreak of bubonic plague in Australia stimulated the authorities to action. In that year a Bubonic Plague Prevention Act was passed which, later in the same year, was repealed and embodied in the Public Health Act, 1900. Under this Act public health administration in New Zealand was put on a much more satisfactory basis. A separate Department of Public Health was set up under its own Minister; the country was divided into a number of health districts, and properly trained and qualified staff were appointed to administer the Act. In the years following the establishment of the Department steady progress was made in the building-up of a public health organization. Acts were passed dealing with the sale of food and drugs; the registration of medical practitioners, pharmacists, nurses and midwives, plumbers; the prevention of quackery; and the control of venereal disease. Sanatoria were established to help in the prevention and treatment of tuberculosis. Attention was given to problems of maternal welfare. Medical supervision of schoolchildren came into operation, at first under the control of the Education Department, though in 1921 it was transferred to the Health Department.

In 1909 a closer link between curative and preventive medicine was forged by merging the Hospitals and Charitable Aid Department into the Department of Public Health's organization.

During the years 1900 to 1920 there was also an increasing public interest being taken in health matters. As a result a number of voluntary health organizations were established with the objects of diffusing knowledge of infant welfare, first aid, and home nursing.

The 1918–19 influenza epidemic brought to light a number of defects in the public health organization, particularly the need for a simplification of existing health legislation and the need for a clear definition of the duties of local authorities, Hospital Boards, and the Department of Health. The result of this experience was the passing of the Health Act, 1920, under which, with its amendments, the Department of Health has since operated.

Following the passing of this Act, new health districts were created and the existing activities of the Department were expanded. Among the more important of the new activities of the Department were the establishment of a School Dental Service in 1920, the building-up of health publicity work, and, in 1937, the institution of the Medical Research Council. Registration was also widened to include dentists, opticians, and masseurs.

The interest of the general public in health matters continued to expand after 1920, and was marked by the establishment of additional voluntary health organizations.

Recent developments have included a more positive attack on the problem of tuberculosis marked by the passing of the Tuberculosis Act, 1948, and the completion of plans for the establishment of a National Health Institute. At the end of 1947 the Mental Hospitals Department ceased to be a separate Department of State, and became the Division of Mental Hygiene of the Department of Health.

A more detailed outline of the development of public health services in New Zealand up to 1939 will be found in the annual report of the Department of Health for that year.

PRESENT ORGANIZATION OF PUBLIC HEALTH SERVICES.—Local Authorities: Part II of the Health Act, 1920, lays definite obligations on local authorities in regard to public health. Each local authority must either appoint its own Sanitary Inspectors or contribute to the salary of an Inspector of the Department of Health. Each Inspector must hold a certificate of the Royal Sanitary Institute (or certain equivalents) before he can be appointed. A local authority's responsibility in health matters is wide. It must promote and conserve the public health within its district—a function which includes regular inspections of its district; abatement of nuisances as defined in the Health Act; provision of efficient refuse, nightsoil, and sanitary services; protection and purification of water-supplies; closing and demolition of insanitary buildings: registration and regulation of cattle saleyards; and the enforcement of certain minimum sanitary requirements for residences and business premises. It may also make by-laws dealing with public health matters.

In certain circumstances some local authorities may be exempted from the above duties, but in such cases the Health Department must do whatever is necessary for the promotion and conservation of public health in that district. All expenses incurred are recoverable from the local authority concerned.

Department of Health: The chief administrative officer of the Department is the Director-General of Health. He is assisted by two Deputy Directors, and the work of the Department is divided among the following Divisions—Public Hygiene, Hospitals, Child Hygiene, Nursing, Clinical Services, Tuberculosis, Maternal Welfare, Dental Hygiene, and Occupational Health. There is also the Division of Mental Hygiene, the activities of which are described in Subsection 5 C. New Zealand as a whole is divided into fourteen health districts, each under the control of a Medical Officer of Health, who must be a medical practitioner with special qualifications in sanitary science.

The Department is required to take whatever steps are necessary to secure the preparation, effective carrying out, and co-ordination of measures necessary to promote public health. It administers all Acts relating to public health; it advises local authorities on matters relating to public health; it must do whatever is possible to prevent, limit, or suppress disease; it promotes research into matters connected with public health and the prevention and treatment of disease; it conducts health publicity and organizes and controls medical, dental, and nursing services paid from public funds. With the authority of the Minister, a Medical Officer of Health may exercise very wide powers in the event of an outbreak of infectious disease, including the requisitioning of land and buildings, prohibition of public gatherings, and controlling the movements of cases and contacts of any infections disease. Certain diseases, mostly infectious, but including some non-communicable, must be notified by medical practitioners. Provisions relating to quarantine are included in the Health Act; and extensive power is given to make regulations relating to the conservation and promotion of public health.

The Department's organization includes a Board of Health, which usually acts in an advisory capacity, but may in certain circumstances require local authorities to carry out prescribed works.

In addition to the Health Act, 1920, a full summary of which is given in the 1927 issue of the Year-Book, the following Acts are administered by the Department:—

  • Cemeteries Act, 1908.

  • Dangerous Drugs Act, 1927.

  • Dentists Act, 1936.

  • Dietitians Act, 1950.

  • Food and Drugs Act, 1947.

  • Hospitals Act, 1926.

  • King George V Memorial Fund Act, 1938.

  • Medical Act, 1908.

  • Medical Advertisements Act, 1942.

  • Medical Practitioners Act, 1950.

  • Medical Research Council Act, 1950.

  • Mental Defectives Act, 1911.

  • Nurses and Midwives Act, 1945.

  • Occupational Therapy Act, 1949.

  • Opticians Act, 1928.

  • Physiotherapy Act, 1949.

  • Plumbers Registration Act, 1912.

  • Poisons Act, 1934.

  • Radioactive Substances Act, 1949.

  • Social Hygiene Act, 1917.

  • Social Security Act, 1938 (Part III).

  • Tuberculosis Act, 1948.

A detailed report of the activities of the Department of Health is given in the annual report of the Director-General of Health (parliamentary paper H-31).

The actual expenditure on the activities of the Department of Health for the years ended 31st March, 1949 and 1950, and the estimated expenditure for the year ended 31st March, 1951, are given in the following table.

Expenditure, Year Ended 31st March, 1949.Expenditure, Year Ended 31st March, 1950.Estimated Expenditure, Year Ended 31st March, 1951.
 £££
Salaries, departmental officers661,161826,673874,814
Health education and publicity27,33628,78523,000
Medical bursaries19,70219,46519,350
Supply of milk to school-children235,466320,328320,000
Subsidies under Hospitals Act4,897,8475,018,0176,245,625
Medical research work19,48521,01933,294
Grants to voluntary organizations73,84173,59979,110
Departmental institutions190,430266,560292,400
Other costs of administration479,381524,042566,373
    Expenditure from Consolidated Fund6,604,6497,098,4888,453,966
Maternity benefits916,120871,386855,000
Medical benefits2,306,8812,524,2902,608,000
Hospital benefits1,997,3752,011,6492,065,000
Pharmaceutical benefits1,793,1592,043,8432,157,000
Supplementary benefits861,9131,009,9411,060,000
    Expenditure from Social Security Account7,875,4488,461,1098,745,000
  Total expenditure by Department14,480,09715,559,59717,198,966

In accordance with an amendment to the Health Act, 1920, as from 25th November, 1947, the Mental Hospitals Department became the Division of Mental Hgyiene of the Department of Health. The above figures do not include expenditure on mental hygiene, which, for the year ended 31st March, 1949, was £1,476,768; for the year ended 31st March, 1950, £1,766,659; and which was estimated to amount to £1,784,739, for the 1950–51 year.

PUBLIC HEALTH ACTIVITIES.—This Account covers measures relating to “preventive” medicine, as distinct from activities in “curative” medicine, which are dealt with elsewhere in tin's volume—see Suction 5u (Hospitals) and Section on (Mental Hospitals). Information on medical, hospital, and other related benefits, which are administered by the Department of Health, is given in Section 26 (Social Security, Pensions, Superannuation, &c).

It is convenient to consider public health activities under headings which correspond to certain of the divisions within the Department of Health. These headings are—

  • Public Hygiene.

  • Tuberculosis.

  • Child Hygiene.

  • Dental Hygiene.

  • Maternal Welfare.

  • Occupational Health.

PUBLIC HYGIENE.—The Health Act places responsibility for the maintenance of the public health largely on the Department, but local authorities have powers and duties to perform in a number of sanitary and inspection services. New Zealand is divided into fourteen health districts, each being under the control of a Medical Officer whose duties include the administration of all enactments relating to Public Health and who can provide local governing bodies with expert advice in this field. Public Hygiene is concerned more particularly with the control of infectious disease, environmental hygiene, foods and drugs, narcotic drugs and poisons, and burial and cremation.

Disease: The control of disease is based on a system of notification which has long been in force. The present list of notifiable diseases is as follows:—

Notifiable Infectious Diseases—

  • Acute poliomyelitis (infantile paralysis).

  • Anthrax.

  • Cerebro-spinal fever (cerebro-spinal meningitis, meningococcus meningitis).

  • Cholera.

  • Dengue.

  • Diphtheria.

  • Dysentery (amoebic and bacillary).

  • Encephalitis lethargica.

  • Enteric fever (typhoid fever paratyphoid fever).

  • Erysipelas.

  • Fulminant influenza.

  • Leprosy.

  • Ophthalmia neonatorum.

  • Plague (bubonic or pneumonic).

  • Pneumonic influenza.

  • Puerperal fever (puerperal septicæmia, puerperal sapræmia).

  • Puerperal fever, involving any form of puerperal sepsis other than, or in addition to, puerperal septicæmia and puerperal sparæmia.

  • Septicæmia consequent upon abortion or miscarriage.

  • Septicæmic influenza.

  • Any form of sepsis or sapræmia consequent upon abortion or miscarriage.

  • Smallpox (variola, including varioloid, alastrim, amaas, Cuban itch and Philippine itch).

  • Streptococcal sore throat (including scarlet fever).

  • Trachoma (granular conjunctivitis, granular ophthalmia, granular eyelids).

  • Typhus.

  • Undulant fever.

  • Yellow fever.

Other Notifiable Diseases

  • Actinomycosis.

  • Anchylostomiasis (hookworm disease).

  • Bilharziosis (endemic hæmaturia, Egyptian hæmaturia).

  • Beriberi.

  • Eclampsia.

  • Hydatids.

  • Food poisoning (botulismus, ptomaine poisoning).

  • Chronic lead poisoning.

  • Malaria.

  • Phosphorus poisoning.

  • Tetanus.

All forms of tuberculosis are notifiable under the Tuberculosis Act, 1948.

Venereal Diseases: Venereal diseases, while scheduled infectious diseases, are only notifiable if the patient discontinues treatment before cure is effected. The Venereal Diseases Regulations 1941, which revoked earlier regulations dealing with these diseases give adequate powers for the examination and treatment of persons suspected of suffering from the diseases. Free treatment has been established in the larger cities and treatment is available to seamen at the main ports in accordance with the Brussels Agreement. Restrictions are also placed on the nature of the employment such persons may undertake if they are Buffering from the diseases in a communicable form.

In the administration of the regulations, every precaution is taken to ensure secrecy and the avoidance of publicity.

Environmental Hygiene is concerned with the provision and proper maintenance of public water-supplies and sewerage systems, the disposal of refuse, the condition of dwellinghouses, the control of offensive trades, and the hygiene of premises in which food is manufactured and sold, including eating-houses. These matters are primarily the responsibility of the local authorities, but the Department of Health acts in a general advisory capacity. In the case of many of the smaller local authorities the necessary inspections are made by departmental Inspectors on behalf of and by arrangement with the local authorities.

Food and Drugs: Legislation relating to the sale of food and drugs has been in force since 1908. The Act at present in force is the Food and Drugs Act, 1947. It provides for the analysis, by analysts appointed under the Act, of any article of food or drink, or of any drug, which may be sold, offered for sale, or exposed for sale, and for the inspection of any place where there is any food or drug intended for sale. If any such article be proved to be unfit for human consumption heavy penalties ma}' be inflicted on the person or persons responsible. Stringent measures are provided for the prevention of adulteration of food, drink, or drugs, and for the inspection of places where such goods are manufactured or packed. Control is also established over all utensils and appliances coming into contact with foods and drugs.

Considerable progress has been made in implementing the purposes of the Act. All the common foodstuffs are standardized, and the labelling of packages is controlled by regulations, which are revised and added to as the necessity arises. Regular sampling of foods, particularly milk, is undertaken by departmental Inspectors, and these samples are analysed in the Dominion Laboratory and its branch laboratories.

An important provision of the Act controls all kinds of publicity concerning any food or drug whereby a purchaser would possibly be deceived in regard to the properties of such food or drug, whether or not it is standardized by regulation. This matter is also covered by the Medical Advertisements Act, 1942, which is referred to later.

The definition of “drug” includes medicines used externally or internally by man—anæsthetics, soaps, and disinfectants.

Any person may, on payment of the prescribed fee, together with the cost of the sample, require any authorized officer to purchase a sample of any food and submit it for analysis.

A new power contained in the 1947 Act enables any drug to be withheld from the public except when prescribed by a doctor, dentist, or veterinary surgeon.

Dangerous Drugs and Poisons: In order to carry out New Zealand's obligations under international conventions relating to habit-forming drugs, the Dangerous Drugs Act, 1927, was enacted. The dealing in and the use of prepared opium are prohibited, and the production, manufacture, sale, and distribution of other dangerous drugs are restricted to persons licensed by the Director-General of Health. The importation of these drugs is controlled by the Customs Department. Provision is made to prevent illicit traffic in drugs of a habit-forming nature. Suitable regulations are in force to give effect to the provisions of the Act, and are similar to the regulations in the United Kingdom and Australia.

The Poisons Act, 1934, controls the proper labelling and packing of poisons, and in particular requires that all liquid poisons be packed in bottles of distinctive colour and shape. It is an offence to pack poisons in bottles that are ordinarily used for food, drink, or medicine. The Act also provides for the control of certain poisonous drugs by preventing their sale to the public except on the prescription of a doctor, a dentist, or a veterinary surgeon. The regulations under the Poisons Act follow the corresponding legislation in force in the United Kingdom.

Hydatid Prevention: In January, 1937, an amendment to the Dogs Registration Act, 1908, came into force requiring local authorities to keep a supply of approved remedies for the care or prevention of disease in dogs caused by infection from the parasite echinococcus granulosus. At the time of registration every person registering a dog receives a sufficient amount of an approved remedy to enable him to treat the dog every three months until the ensuing date of registration, and also printed instructions for the use of the remedy. The approved remedy at present supplied is arecoline hydrobromide. The Act is administered by the Department of Internal Affairs.

Medical Advertisements Act, 1942: This Act, which repealed the Quackery Prevention Act, 1908, came into force in January, 19–13. Under it the word “advertisement” is defined broadly, but does not include any advertisement or scientific matter distributed only to members of the medical and allied professions.

The Act sets up a Medical Advertisements Board, which is given power to control all medical advertisements. The Board may require the claims or statements made or implied in any medical advertisement to be substantiated to its satisfaction. Subsequent publication of such an advertisement is prohibited until after the Board has notified its decision. For the purpose of protecting the public, the Board is given power to publish privileged statements concerning the subject-matter of any medical advertisement.

Regulations issued under the Act limit the nature of the subject-matter which may be included in any medical advertisement, and include a list of diseases concerning which no advertisement may make a claim to cure.

Cemeteries: The law governing burial and cremation in New Zealand is found in the Cemeteries Act, 1908, and its amendments of 1912, 1922, 1926, and 1950.

Widespread provision for cemeteries has been made in the past by the reservation of areas of Crown land for this purpose, but apart from this the Cemeteries Act makes it clear that local authorities are charged with ensuring that in their districts there exists adequate provision for the disposal of the dead.

In most rural areas and in the smaller centres the local authority either acts as trustee or else has been delegated the power of appointing individual trustees to carry out the provisions of the Act. For some cemeteries established on Crown reserves, trustees are appointed by the Governor-General. In the larger centres local authorities have acquired land for the establishment of cemeteries.

The law provides that cremation may be carried out subject to the conditions that the deceased was not known to have left any written direction to the contrary and that the cremation is effected in conformity with the regulations. The latter impose stringent precautions against cremation being used for any criminal purpose. Crematoria have been established in Auckland, Wellington, Christchurch, Dunedin, Wanganui, Hastings, and Nelson.

TUBERCULOSIS.—In the 1947–49 issue of the Year-Book (pp. 110–112) is given an account of the developments in the control of tuberculosis in this country, which led to New Zealand being one of the first countries to have special legislation dealing solely with this disease. In addition to giving the background to the Tuberculosis Act, 1948, the account mentions the work of the Tuberculosis Division of the Department of Health and refers to the recommendations of the World Health Organization.

Briefly, the control of Tuberculosis is based on—

  1. Accurate notification and registration of cases.

  2. Adequate supervision and reclassification.

  3. Segregation of active infectious cases.

  4. Instruction and treatment of individual patients.

  5. Rehabilitation of convalescent and arrested cases.

There is statistical evidence to suggest that these methods of control are resulting in a decrease in the death rate and the incidence of the disease, although it will be several years before this can be confirmed.

In the past year a programme of vaccination with B.C.G. Vaccine has been commenced on a voluntary basis in certain sections of the population, particularly nurses and contacts of cases of tuberculosis. The numbers treated in this way are insufficient to have any appreciable effect upon the incidence of the disease.

The 1950 amendment to the Tuberculosis Act, 1948, empowers Inspectors of Health, in addition to those classes of persons already specified, to make inspections of residences or places of work of persons known or suspected to be suffering from tuberculosis or to be a contact of such a sufferer. The principal Act is also amended by strengthening those powers relating to isolation, in certain cases, of persons likely to spread infection.

CHILD HYGIENE.—The Division of Child Hygiene is responsible for the supervision of all measures for safeguarding the health of school-children and ensuring a satisfactory environment at school. The medical oversight of pre-school children from age eighteen months is also provided for.

The professional staff of the Division consists of a Director, who is a medical practitioner, and seventeen full-time and ten part-time School Medical Officers. The medical officer in charge of a health district is responsible, within the limits of the policy laid down and the instructions he receives, for the direction and control of all child hygiene work done in his district.

The Division aims at giving each primary-school child at least three physical examinations during his primary-school life. The first, as an entrant, is carried out by the School Medical Officer, and the others, in Standard 2 and Form II, by the District Nurse, who refers any departure from normal for a special examination by the School Medical Officer. Special medical examinations by the School Medical Officer are also made whenever parents, teachers, the District Nurse, or the School Medical Officer consider them to be necessary. Children found to be suffering from defects are kept under observation until the necessary treatment is obtained. Mentally backward and feeble-minded children are given special attention, arrangements being made for their entry into special schools, special classes, or other institutions as may be necessary.

An effort is being made to have each pre-school child examined once a year, but if the child is normal and of good physique this period may be lengthened and the parent asked to return only if the child shows any departure from normal in the meantime. The examination of pre-school children is carried out at kindergartens and, assisted by the District Nurse, at school clinics, or at Plunket Rooms in conjunction with the Plunket Nurses.

A start has been made on the more detailed medical examination of post-primary school children and of physically handicapped children enrolled with the Education Department's Correspondence School.

Throughout its work the Division tries to secure the interest and co-operation of parents, because only in this way can the work be made effective. With this object in view parents are invited to be present at the medical examination of their children, an opportunity of which the majority take advantage.

Prevention of Disease: The activities of the Division are not confined to the routine medical examination of school-children. In addition, certain positive measures are taken to prevent disease and correct physical defects. The more important of these measures are—

  1. Typhoid Inoculations.—Maori children in the North Island are inoculated annually against the typhoid group of diseases.

  2. Diphtheria Immunization.—Protection against diphtheria is a routine procedure and is provided for by a home visit from the District Nurse, who will herself immunize the child at age from six months to twelve months, or arrange for a medical practitioner to do so. Diphtheria immunization of children who have been missed during the first year of life is undertaken by medical officers at the pre-school clinics. Booster doses are also given by the medical officers when the child enters school.

  3. Vaccination against Whooping-cough is offered at pre-school clinics to children six months to two years of age.

  4. Goitre Control.—The use of iodized salt and iodine-rich foods are advocated by the officers of the Division.

  5. The Milk-in-schools Scheme and the establishment of Health Camps, which aim at the maintenance or restoration of the body.

The object of the Milk-in-schools Scheme is to supply to each school-child in New Zealand half a pint of high-grade pasteurized milk on each day the school is open. The milk is delivered at the school bottled and is consumed through a straw from the original container. To ensure that the milk delivered to the schools is of the best possible quality, the sources of supply are inspected regularly and the processing and distribution of the milk is subject to close supervision. If for any reason it is not possible to supply a school with milk under the scheme, then powdered malted milk is supplied, provided that it can be served under hygienic conditions.

Health camps cater for delicate and undernourished children. The service selects the children to attend the camps (which are maintained by an independent organization—The New Zealand Federation of Health Camps) and, as necessary, re-examines them before admission and after discharge. In the camps the children live under an orderly and disciplined routine, they eat plain, well-cooked food, and they get plenty of rest and sunshine. In practically all cases a child who attends a health camp benefits both physically and mentally.

DENTAL HYGIENE.—The Division of Dental Hygiene, which was instituted in 1921, is concerned with the administration of the various dental activities of the Government, and in particular—(a) The national dental service which comprises (i) the School Dental Service and (ii) the Adolescent Dental Service; (b) The Dentists Act, 1936, and Regulations; (c) Dental bursaries; (d) Inspection of dental departments of Public Hospitals; and (e) Dental research.

The Division of Dental Hygiene has at its head a Director (a dental surgeon), who is responsible to the Minister of Health, through the Director-General of Health. The Director is assisted by a Deputy Director, an Assistant Director (Training), a Principal Dental Officer (Health Education), and a Principal Dental Officer (Orthodontics). A Senior Executive Officer is responsible for the secretarial services. Also attached to the Director's office is a Dental Field Research Officer, who is seconded from the New Zealand Medical Research Council.

The service is organized in seven units, each of which is controlled by a senior dental officer, who is directly responsible to the Director. These officers are the Principal of the Dominion Training School for Dental Nurses, and the Principal Dental Officers in charge of the six dental districts into which New Zealand is divided.

The School Dental Service is staffed by trained School Dental Nurses and the Adolescent Service by Dental Surgeons.

The School Dental Service.—Briefly, the functions of the Service are to improve the standard of dental health of school-children (and of pre-school children) by affording them regular and systematic treatment at six-monthly intervals, commencing from the primer classes (or earlier where possible), and continuing through to the highest class of the primary (or intermediate) school. Thereafter they are eligible for enrolment in the Adolescent Service. At present an unprecedented increase in the school population is being experienced as a result of the unusually high birth-rate in recent years. Until the number of Dental Nurses can be increased proportionately, children are being transferred to the “adolescent” service at an earlier stage, in order to enable the Dental Nurses to maintain six-monthly treatment for the younger children. This is a temporary phase, pending the training of more Dental Nurses.

The other main function of the School Dental Service is health education—the instruction of the children and of the general public in the principles of oral hygiene and the prevention of dental disease. For this purpose there is within the Division an organization for health education, to which further reference is made under a later heading.

The Dominion Training School in Wellington is the training centre for School Dental Nurses. Two years are devoted to their theoretical and practical training. Approximately two hundred Student Dental Nurses are in training at the one time. The course is carefully graduated, and is in the hands of a staff of Dental Surgeons and Dental Tutor Sisters. Private dental practitioners are represented on the examining board for the final examination. During the period of training Student Dental Nurses reside in hostels owned and controlled by the Department of Health.

On completing her training, a School Dental Nurse is posted to a school dental clinic, where she becomes responsible to the Principal Dental Officer of her district for the dental treatment of a group of approximately five hundred patients. She is visited at intervals by the Principal Dental Officer or one of his staff, who discuss current problems, and assist the Dental Nurse to maintain a high standard in the conduct of her work.

Dental treatment comprises fillings in both temporary teeth and permanent teeth, cleaning and scaling of the teeth, extractions where necessary, and sodium fluoride treatment. During 1949 the following operations were performed in the Service: 1,301,840 fillings, 91,458 extractions, 516,841 other operations. The aim of the Service is to promote dental health by conserving the natural teeth and preventing dental decay. Only a small number of teeth have to be extracted as unsaveable, about six for every hundred saved by suitable treatment.

Adolescent Dental Service.—The original aim was to provide dental service for adolescents through the medium of a full-time salaried service, but while the present shortage of dental surgeons continues progress towards this objective will be slow. In the meantime dental care for adolescents is being provided by private practitioners as a dental benefit under the Social Security Act, the practitioners being reimbursed on a fee-for-service basis.

Eligibility for dental treatment as an adolescent is contingent upon a person having undergone regular dental care up to within three months of the time of application, either at a school dental clinic or from a private dental practitioner.

Treatment of adolescents is in effect a continuation of the treatment provided by the School Dental Service, and is continued until a patient has reached his nineteenth birthday, or such earlier age as the Minister may from time to time appoint. For the present the maximum age has been fixed as the sixteenth birthday.

Treatment is essentially of a nature designed to conserve the natural teeth. Dental supervision of adolescents is on a basis of examination and treatment at six-monthly intervals. There is free choice of dentists, and dentists have the right to decline patients.

The treatment (other than treatment requiring special approval) which may be provided as dental benefits, and the fees payable, are indicated in the Schedule to the Social Security (Dental Benefits) Regulations 1946. Dentists are free to exercise their professional judgment, and, if in their opinion a case demands a form of treatment that is not provided for in the Schedule, there is provision, with certain limitations, for such treatment to be approved as a charge on the Social Security Fund.

At the 31st March, 1950, the number of adolescents enrolled for dental benefits were—

For general dental benefits86,719
For special dental benefits6,166

Dental Health Education.—The dental health education activities of the Department are under the control of the Principal Dental Officer (Health Education), who is responsible for the production of posters, pamphlets, sound films, film strips, radio talks, newspaper advertisements, and all other types of advertising media. In the departmental health exhibit is a dental section which is staffed when on tour by a Dental Tutor Sister (Health Education) and by School Dental Nurses from the locality in which the exhibit is on view.

Officers of the Service are kept in touch with health education and other matters by means of the national Denial Service Gazette, which is published bi-monthly.

Dental Officers and school dental nurses are expected to impress on their patients the necessity of maintaining a high standard of oral health. To further this end every opportunity is taken of distributing health educational literature, displaying posters, and devoting reasonable clinical time to instruction in oral hygiene. Opportunities to address meetings of various kinds are availed of wherever possible.

Dental Research.—By arrangement with the New Zealand Medical Research Council, a Dental Field Research Officer is attached to the Service. Primarily, this officer is engaged in a long-term programme of field research on dental problems, but his services are also available to assist the dental administration in carrying out short-term research projects when information is required for a specific purpose.

In addition to this work, the investigation of dental materials and methods of using them goes on constantly, and provides useful data for the selection and use of materials for the Service.

Dental Bursaries.—The Government grants between twenty and thirty bursaries each year to selected students to assist them to qualify as dentists. The bursaries are of a value of £70 per annum, and are tenable for five years, subject to satisfactory reports from the University authorities. An additional allowance of £40 per annum is payable to students who have to live away from home in order to pursue their studies. Students who are granted bursaries must enter into an agreement to pursue their studies diligently, and on graduating, to enter the service of the Crown or of a Hospital Board appointed by the Crown for a specified period not exceeding three years.

MATERNAL WELFARE.—Maternal- and infant-welfare work in New Zealand is based on co-operation between the Department of Health, Hospital Boards, the medical profession, and the Plunket Society.

The Director of Maternal Welfare is a medical practitioner. He supervises the inspection of maternity hospitals, the techniques in use in these hospitals, and, generally, the promotion of all aspects of maternal welfare.

The Medical Officers of Health, through their staff of Nurse Inspectors, exercise a general supervision over the work of midwives and closely control the many private hospitals throughout the country. All private hospitals are required to be licensed under the Hospitals Act, 1926, and the Department of Health sees that standards regarding the buildings, equipment, and staff are observed.

Except in an emergency, no persons other than registered medical practitioners and registered midwives are allowed to conduct confinements, and only registered midwives and registered maternity nurses are permitted to nurse women in childbirth. Approximately 95 per cent. of all confinements take place in the various types of maternity hospital—a maternity annex to a public hospital, a St. Helens Hospital, or a private maternity hospital.

Important contributions to maternal welfare are made by the Division of Nursing, which includes in its duties the supervision of the training of midwives and maternity nurses, and by the Hospitals Division, which includes in its duties the approval of plans for accommodation to be provided by the various types of maternity hospital. The work of these two Divisions is surveyed elsewhere in this section.

OCCUPATIONAL HEALTH.—In 1944, a Medical Inspector of Factories in Great Britain was seconded to the Department of Health in order to undertake a survey of conditions of work in New Zealand factories. In his report he suggested “that consideration be given to the formation within the Department of Health of a Division of Industrial Hygiene to include the factory inspectorate, relieved of all other duties and to administer those parts of a now Factories Act and such other legislation as is concerned with the health, welfare, and safety of the industrial worker.”

The principle of a Division of Industrial Hygiene was accepted, and the first medical appointment to the new Division was made during 1946, the appointee taking up his duties in January, 1947. The name of the Division has since been changed from “Industrial Hygiene” to “Occupational Health,” the new title giving a bettor indication of the scope of the work that might well eventually be covered. Four District Industrial Medical Officers have also been appointed to work in the four main centres, and between them they cover the whole of New Zealand, under the general direction of the Director of the Division at the Head Office of the Department of Health.

A prominent characteristic of the diversification of New Zealand industry is that it is of recent growth and is contained in small units. In many of the small factories, on account of the high per capita cost, amenities tend to be of a lower standard than in the average large factory. A substantial proportion of small factories, in addition to a number of the larger ones, fail to conform to the 1946 Factories Act standards, and the first objective of the Industrial Health Service, therefore, must be to assist the Department of Labour and Employment to establish the minimum standards required by the Act. In this, the District Industrial Medical Officers need to work in close co-operation with the inspectors of the Department of Labour and Employment and in order to facilitate this liaison, office accommodation has been provided for the medical officers in the District Labour and Employment offices in Auckland, Wellington, and Dunedin. In Christchurch the District Industrial Medical Officer acts also as Deputy Medical Officer of Health and his offices remain in the Department of Health.

The Factories Act, 1946, section 78, gives to Medical Officers of Health or other authorized officers of the Department of Health the same powers and authorities as Inspectors of Factories with regard to the health and welfare sections of the Act. The Act gives the officers of the Department of Health no legal standing in relation to the provisions for safety, although the lost time caused by accidents demands more preventive work in which medical men and nurses with an industrial training should play a part.

The Division has also the more confined objective of guarding the health of those workers who are exposed to the special health risks, such as those handling lead salts, or liable to breathe dangerous fumes, or those who are in contact with skin-irritants. Inevitably there is a great deal of ignorance and lack of consciousness on the part of management and workers of the dangers and hazards associated with their work. Education on these matters, together with publicity and propaganda, will do much to raise the level of understanding and is properly a function of the Division.

In 1947 an industrial nursing course was incorporated into the syllabus of the Postgraduate Nurses' Training School, and this has been repeated in subsequent years. Four of the nurses who took this course have been appointed to the Department of Health, two to work in Wellington, one in Auckland, and one in Christchurch, and it is proposed to make additional appointments so that each District Industrial Medical Officer will have on his staff nurses trained in industrial health. These nurses have had special training in blood examination of workers at risk from lead-absorption, and their duties include the monthly blood examination of such workers required under the Lead Processes Regulations. It is hoped in time that other groups of workers at special risk from health hazards, such, for example, as those in electro-plating shops, will be included under the regular supervision of the nurses, and that they will be available for any special work that may be required in looking after juveniles, pregnant women, or physically handicapped workers.

In addition, a number of industrial nurses are employed by the larger private firms and by certain Government Departments. A Nurse Inspector appointed by the Department of Health regularly visits these nurses in order to advise them in their work and to co-ordinate and broaden the conception of a health service in industry. Part of this officer's time is occupied as tutor at the Post-graduate Nurses' School in Wellington.

In 1949 a full-time one-year course was inaugurated at the Wellington Technical College for Health and Labour Department inspectors and recruits. This course includes instruction in industrial health, in addition to the subjects required for the Certificate of the Royal Sanitary Institute.

The Division is concerned with the health of all workers, not merely those covered by the Factories Act, and from time to time surveys are undertaken of working conditions in specific industries. AS a result of inspections and reports on conditions of work of waterside workers at Wellington and Lyttelton, industrial health centres have been set up at each of these ports, staffed by the Department's industrial nurses and under the supervision of the industrial medical officer for the area.

Radiation Protection.—An important step has been taken with the passing of the Radioactive Substances Act, 1949. Although the dangers associated with the generation and use of X-rays have long been realized, there has previously been no statutory authority for specific control of X-ray plants and their operators. The hazards arising from the high voltages employed have been well known, but it was not until 1944, when the Electrical Wiring (X-ray) Regulations were drawn up, that these hazards became subject to specific control. With the increasing use of radium in medicine and the possibilities that have appeared in the last few years of radioactive elements being used in fundamental research there has come about a need for legislation designed to protect all persons from harmful radiations. Factors contributing to the realization of this need have been that X-ray equipment of old design was still being used and that X-rays have found an increasing use in industry and even in some special branches of merchandising, such as the fitting of footwear.

The Radioactive Substances Act, 1949, established a special council of experts, radiologists, and physicists, who will advise the Minister of Health on all questions of a technical nature. The Act set up a very thorough licensing system for all users of irradiating apparatus and radioactive substances, and gave very wide powers for the making of specific regulations. These latter, known as the Radiation Protection Regulations 1950, have specific requirements relating to the health of those persons whose work is likely to expose them to harmful radiations, ventilation of rooms in which these radiations are produced, quantitative limitations on the exposure of persons to radiation, and generally those precautions and protective devices which will all contribute to safe practice. The same regulations require full records to be kept of various uses of radiations, in order that long term effects on a person's health may later be traced.

In all problems associated with the use of irradiating apparatus and radioactive substances the Dominion X-ray and Radium Laboratory at Christchurch is playing an important part.

NURSING.—The Nursing Division is responsible for the supervision of the training, the examination, and the registration of the following classes of hospital employees:—

Nurses.Nursing aides.
Maternity nurses.Psychiatric nurses.
Midwives.Male nurses.

Post-graduate training for selected registered nurses is conducted at the Post-graduate School, Wellington, the courses given at present being—

  • Public health nursing.

  • Hospital and nursing school administration.

  • Industrial nursing.

  • Medical-social work.

  • Obstetrical nursing.

In addition, post-certificate courses are given at several of the main hospital centres in—

  • Plunket nursing.

  • Plastic surgical nursing.

  • Neuro-surgical nursing.

Regular inspection of all public hospitals, including those which are training schools, is carried out. The Division also organizes and controls the district nursing services conducted by the Department of Health and it supervises the district nursing services conducted by the various Hospital Boards throughout New Zealand.

MEDICAL RESEARCH COUNCIL.—The Medical Research Council was established in 1938, under the power given in Section 12 (d) of the Health Act, 1920, The Council, closely associated with the Department of Health, sets up ad hoc committees as the need arises to control and direct the research work it promotes. At the end of 1949, research in the following subjects was in progress:—

Microbiology.Neuropathology and neurophysiology.
Tuberculosis.Dentistry.
Clinical medicine.Obstetrics.
Nutrition.Endocrinology.

In addition, the Council co-operates in the research work being carried out by the Travis Trust Laboratory for tuberculosis research and the New Zealand Branch of the British Empire Cancer Campaign Society.

The Medical Research Council Act, 1950, however, provided for the incorporation of the Medical Research Council and defined its powers and functions, the effective date of the Act being the 1st April, 1951, The functions of the Council are the fostering of medical research, the preparation and publishing of reports thereon, and the furnishing of information, advice, and assistance to persons and organizations engaged in medical research. The Council is empowered to expend moneys for the purposes of carrying out its functions and to make grants to persons or organizations for the purpose of medical research. The Medical Research Endowment Fund is established by the Act, and moneys appropriated by Parliament for medical research are paid into this fund. Authority is also given to local authorities, trustee savings-banks, &c., to make donations to the Council for the purposes of medical research.

The effects of incorporation of the Council are considered to include (a) the assurance of continuity of medical research, (b) the possibility of attracting funds for medical research from private donations, bequests, &c. (which are exempt from gift duty and death duties), and (c) the assurance of permanency of employment to suitable research workers, and the provision of superannuation for them.

REGISTRATION COUNCILS AND BOARDS- Medical Practitioners: Under the Medical Practitioners Act, 1914, as amended by the Medical Practitioners Amendment Act, 1924, and consolidated in the 1950 Act, is constituted the Medical Council of New Zealand, consisting of the Director-General of Health and six other registered medical practitioners. One of the six members is appointed on the recommendation of the New Zealand Branch of the British Medical Association.

The Council deals with all applications for registration under the Act, which prescribes that every person shall be entitled to registration who satisfies the Council that he is a graduate in medicine and surgery of the University of New Zealand; or registered on the register kept in accordance with the provisions of the Acts regulating the registration of medical practitioners in the United Kingdom, or eligible for registration on such last-mentioned register; or the holder, after a course of not less than five years' study, of a foreign diploma approved by the Council. The Council may, however, refuse to approve any diploma (even in the case of persons registered or eligible for registration in the United Kingdom) unless it appears that New Zealand graduates are, without further examination, entitled to registration in the country grunting the diploma. It may also require the holder of a foreign diploma to pass an examination in medicine and surgery to be prescribed and conducted by the Senate of the New Zealand University.

An applicant who is refused registration as a medical practitioner has the right of appeal to the Supreme Court. The fee for registration is £1 for each qualification, with a minimum of £2, payable on deposit of evidence of qualification. Under the Finance Act, 1932–33 (No. 2), an annual practising certificate (fee, 5s.) is required.

The Medical Council is vested with disciplinary powers, including the suspension of a medical practitioner from practice. Eight of appeal to the Supreme Court is provided. The Supreme Court, on the motion of the Medical Council, may order the removal of a name from the register in cases where a medical practitioner is guilty of grave misconduct, or is convicted of an indictable offence punishable by imprisonment with hard labour for a term of two years or upwards. The Medical Council is also given power to hear appeals against the decisions of the Medical Practitioners Disciplinary Committee set up under the Medical Practitioners Amendment Act, 1949, Any person involved who feels aggrieved by the decision of the Medical Council on an appeal from the Disciplinary Committee may appeal to the Supreme Court against the Council's decision.

The number of medical practitioners on the register at 31st December, 1949, was 2,313. During the year the names of 76 practitioners were removed and 160 added, 101 of the latter having New Zealand qualifications.

Dentists: The Dentists Act, 1936, provides for the constitution of a Dental Council, the functions of which are to examine and approve of the qualifications of applicants desiring registration as dentists and to exorcise disciplinary control over registered dentists.

The Dentists Register is kept by the Director-General of Health, to whom applications for registration are addressed. The applications are submitted by the Director-General of Health to the Dental Council for consideration and direction regarding acceptance for registration. The Director-General of Health may issue to any person who has applied for registration as a dentist a Provisional Practising Certificate which entitles the person to practice dentistry pending consideration of his application by the Dental Council.

Every adult person is entitled to be registered as a dentist who satisfies the Dental Council that he is the holder of a qualification in dentistry obtained from the University of New Zealand; or that he is the holder of a qualification approved by the Dental Council and obtained from a University or other institution in the United Kingdom or in some other part of the British Commonwealth (in the latter case, however, the Council may require a further examination); or is the holder of an approved foreign qualification, but the Council may refuse to approve any foreign qualification if New Zealand graduates in dentistry are not accepted for registration without further examination in the country concerned, or the Council may require the applicant to pass a further examination.

The fee for initial registration is £2. If a Provisional Practising Certificate is required, there is a further fee of 5s. A fee of £1 per annum is payable for an annual practising certificate.

The number of dentists on the register at 25th August, 1950, was 806.

Physiotherapists.—Under the Physiotherapy Act, 1949, is constituted the Physiotherapy Board, consisting of the Director-General of Health, the Principal of the New Zealand School of Physiotherapy, Dunedin, the Inspecting Physiotherapist of the Department of Health, one registered medical practitioner nominated by the Minister, and three practising physiotherapists nominated by the New Zealand Trained Masseurs Association (Inc.).

The Board is concerned with the training, examination, registration, and conduct of persons engaged in the practice of physiotherapy in New Zealand.

The training period is three years. Full-time training for male or female students at the New Zealand School of Physiotherapy, Dunedin, occupies two and a half years of the course, and is followed by a period of six months training at a public hospital approved by the Board as a subsidiary training school. At the conclusion of the course of training students are required to pass the State examination in Physiotherapy in order to qualify for registration. The fee payable for examination is £3, with a further fee of £3 for registration.

Every person registered under the Act and engaged in the practice of physiotherapy must hold an annual practising certificate. The fee payable is 10s. per annum.

The Act also provides for the admission to the register of overseas personnel whose standard of training is acceptable to the Board, the registration fee being £3.

Occupational Therapists.—Under the Occupational Therapy Act, 1949, is constituted the Occupational Therapy Board, consisting of the Director-General of Health as Chairman; the Director, Division of Nursing as Registrar; the Director, Division of Mental Hygiene; the Medical Superintendent of a Mental Hospital; the Supervisor of Occupational Therapy; a Medical Superintendent of a public hospital; a representative of the Bed Cross Society; a representative of the Occupational Therapists' Association, and one other person appointed by the Minister.

The Board is concerned with the training, examination, registration, and conduct of persons engaged in the practice of Occupational Therapy in New Zealand.

The training period is at least two years, and is undertaken at the School of Occupational Therapy, Avondale, Auckland.

Every person registered under the Act and engaged in the practising of Occupational Therapy in New Zealand must hold an annual practising certificate.

The Act also provides for the admission to the register of persons trained outside New Zealand, whose standard of training is acceptable to the Board.

Nurses, Midwives, and Maternity Nurses: Under the Nurses and Midwives Act, 1945, is constituted the Nurses and Midwives Board, consisting of the Director-General of Health (Chairman), the Director, Division of Mental Hygiene, the Registrar (Director, Division of Nursing), one registered medical practitioner, a representative of the Hospital Boards' Association of New Zealand, two registered nurses, one registered midwife, and one registered psychiatric nurse. Members other than official members are appointed on the recommendation of the Minister of Health, the nursing personnel being nominated by the New Zealand Registered Nurses' Association.

The functions of the Board are—

  1. To determine the courses of training and instruction to be undergone by candidates for examination.

  2. To approve hospitals and other institutions at which training or any portion of training may be received.

  3. To conduct examinations; to appoint examiners and make all necessary arrangements for examinations; to issue suitable certificates of registration.

  4. To receive applications for registration and to authorize registration in proper cases.

  5. To have regard to the conduct of persons registered under the Act, and, within the scope of its authority, to do whatever may be necessary for the effective administration of the Act.

Under the Act, regulations authorized by the Governor-General by Order in Council may be made, the current regulations being the Nurses and Midwives Regulations 1947.

Registration.—The Nurses and Midwives Act, 1945, requires that the following registers be kept by the Registrar, who is defined by the Act as the person who holds the position of Director, Division of Nursing—

  1. Register of Nurses.

  2. Register of Midwives and Maternity Nurses.

  3. Register of Male Nurses.

  4. Register of Psychiatric Nurses.

  5. Register of Nursing Aides.

Every person trained in New Zealand who satisfies the Board that she or he has served the stipulated training period, has passed the prescribed qualifying examination, and has complied with the other conditions laid down by the Act is entitled to have her or his name entered in the appropriate register. In addition, persons trained outside New Zealand who satisfy the Board that their training and qualifications are equal to the equivalent New Zealand training and qualifications are entitled to be registered in the appropriate New Zealand registers.

In the case of New-Zealand-trained nurses the fee payable for the qualifying examination includes the registration fee. Overseas-trained nurses whose applications for registration have been approved by the Board are required to pay a fee of £1 for the initial qualification and a further fee of 10s. for each additional qualification.

The total number of names on the various registers as at 31st March, 1950, was—

Nurse2,031
Nurse and Midwife1,019
Nurse and Maternity2,148
Nurse and Psychiatric32
Nurse, Midwife, and Psychiatric16
Nurse, Maternity, and Psychiatric24
Maternity Nurses353
Midwives335
Psychiatric Nurses370
Male Nurses59
Nursing Aides155

Dietitians.—The Dietitians Act. 1950, provides for the constitution of the Dietitians Board which is concerned with the training, examination, registration, and conduct of dietitians. In general, the arrangement of the Act and the necessary machinery clauses follow the Nurses and Midwives Act. 1945, the Physiotherapy Act, 1949, and the Occupational Therapy Act, 1949, Except with the approval of the Minister given on a recommendation by the Board, a Hospital Board may not appoint any person to carry out the duties of a dietitian unless such person is registered under the Act.

Opticians: The Opticians Act, 1928, provides for the constitution of an Opticians Board, consisting of the Director-General of Health (the Registrar), three persons engaged in practice as opticians in New Zealand (one of whom must be practising as an employee of another registered optician), and a registered medical practitioner with special knowledge of diseases of the eyes.

The Board deals with all applications for registration under the Act. On payment of the prescribed fee (£5), every person is entitled to registration as an optician who satisfies the Board that—

  1. He has received satisfactory training qualifying him to practise as an optician, and is the holder of a certificate of qualification recognized by the Board; or

  2. He has passed an examination under the Act, both theoretical and practical, after a course of not less than three years' training in New Zealand as prescribed by regulations.

Under the Finance Act, 1932–33 (No. 2), an annual practising certificate (fee, 10s.) is required.

Regulations pursuant to the Opticians Act. 1928, prescribe the conditions and period of training and the syllabus for the examination conducted by the Opticians Board.

The number of opticians on the register at 31st December, 1949, was 276.

Plumbers: The Plumbers Board of New Zealand, constituted under the Plumbers Registration Act, 1912, consists of five members—viz., the Director-General of Health or his deputy (Chairman), the Director of Education, a city or borough engineer nominated by the Municipal Association of New Zealand, and a master plumber and a journeyman plumber elected by their respective associations.

The Board is concerned with the examination and registration of plumbers. Once registered under the Act, a plumber is not required to pass any further examination or pay licence fees to local bodies.

The Plumbers Registration Amendment Act, 1950, removed the former limit of 5s. on the fee for registration and the limit of £1 on the fee for examination, and leaves the amount of all such fees to be fixed by regulations.

The total of names on the register at 31st March, 1949, was 3,430.

Pharmaceutical Chemists: There are about 1,060 names on the Register of Pharmaceutical Chemists in New Zealand. All “registered chemists” automatically become members of the Pharmaceutical Society of New Zealand, which Society's affairs are managed by the Pharmacy Board constituted by the Pharmacy Act, 1939.

The Board consists of twelve members, one of whom is appointed by the Minister of Health, nine are elected on a district basis by registered chemists, and two by persons, not necessarily registered chemists, who have served an approved apprenticeship and who, at the time of the election, are employed in pharmacy. The main function of the Pharmacy Board is to administer the Pharmacy Act and generally to protect and promote the interests of the profession of pharmacy and the interests of the public in relation thereto.

It is a specific requirement of the Pharmacy Act that pharmacies in New Zealand be at all times maintained under the immediate supervision and control of a registered chemist, either in the capacity of proprietor or enrolled manager.

The Board has reciprocal arrangements with the pharmaceutical authorities of Great Britain, Northern Ireland, Republic of Ireland, and all the Australian States in the matter of registration. Any person registered as a pharmaceutical chemist in any of these places is eligible for registration in New Zealand. Persons registered as chemists in New Zealand, similarly, are eligible for registration in the countries mentioned.

The Board conducts the examinations proscribed in the Pharmacy Regulations. Persons completing these examinations, as well as an approved apprenticeship of four years, qualify for registration as “registered chemists.”

The College of Pharmacy in Wellington was taken over as a function of the Society at the beginning of 1944 after having been conducted privately for a period of eleven years. In 1949 there were 572 students enrolled with the college for tuition either personally or by correspondence. All persons indentured after the 1st October, 1944, are obliged to attend personally at the college for a period of three weeks during their final year of apprenticeship.

Pharmacy is now subject to the provisions of the Industrial Efficiency Act, 1936, every open shop being under licence. No company or individual may open a pharmacy or change his premises without consent from the Licensing Authority, namely, the Bureau of Industry. There are approximately 606 pharmacies at present licensed. During the year 1949, 392 reports on inspections of pharmacies were considered by the Pharmacy Board.

VOLUNTARY WELFARE ORGANIZATIONS.—Over the years voluntary welfare-organizations have made valuable contributions to the solution of certain problems of public health. In many cases they are encouraged and assisted in their work by grants from public funds. Among the more important of these organizations are the Plunket Society, the New Zealand Federation of Health Camps, St. John Ambulance (N.Z.), the N.Z. Red Cross Society, the Crippled Children Society, and the N.Z. Federation of Tuberculosis Associations.

The Plunket Society—the Royal New Zealand Society for the Health of Women and Children—trains its own baby-welfare nurses, conducts baby-welfare clinics throughout the country, and maintains four Karitane Hospitals for premature babies or difficult feeders, but not catering for the sick baby. The oversight of the healthy baby is left to the Plunket Society, except in those areas where there is no Plunket clinic. In these areas the Health Department District Nurse does baby-welfare work.

The New Zealand Federation of Health Camps was formed in 1936, and to-day maintains a chain of permanent health camps for delicate and undernourished children. The Federation works in close co-operation with the Department of Health. It is the means whereby the voluntary nature of the various organizations is preserved, while ensuring that the available resources are utilized to the best advantage. Much of the finance for the Federation's activities is derived from the proceeds of the annual health stamp appeal.

The St. John Ambulance (N.Z.) has divisions throughout the country carrying out free ambulance work and instruction in first aid and home nursing. It is a branch of the Venerable Order of the Hospital of Saint John of Jerusalem.

The New Zealand Red Cross Society, a part of the International Red Cross Committee, has centres and sub-centres throughout the country. It gives training in first aid, home nursing, hygiene and sanitation, and agency transportation of Uninjured. Graduates of these classes form voluntary aid detachments that in peacetime are recruited as aides in hospitals, and in wartime may be recruited for service overseas as well.

The Crippled Children Society keeps a register of all crippled children, helps them to acquire all possible medical treatment, and undertakes vocational training and home education where this is required.

The New Zealand Federation of Tuberculosis Associations looks after the interests of the tuberculosis. It assists the Health Department with health education of the public regarding tuberculosis and concerns itself with after-care and vocational training and guidance.

NATIONAL PHYSICAL WELFARE AND RECREATION.—Because of the abundant natural facilities for popular recreation, New Zealand citizens have always been characterized by a love of outdoor sporting and recreational activity. Although, compared with the older countries of the world, there are large areas even in the cities available as playing-fields, the demand still exceeds the supply. On the other hand, the long coast-lines and frequent mountain ranges enable most people to enjoy outdoor life. A temperate, equable climate ensures the use of facilities on a year-round basis.

The most popular summer sports are swimming and surfing, tennis, cricket, athletics, and lawn bowls, while softball is becoming popular with both sexes throughout the country.

Rugby football is the premier sport in winter, but there are enthusiastic and numerically large followings for hockey, association football, tramping, ski-ing and mountaineering, outdoor and indoor basketball, badminton, and table tennis. Both professional and amateur boxing and wrestling are quite popular winter sports, whilst the game of indoor bowls, hitherto confined to isolated areas, is attracting increasing numbers.

Generally speaking, facilities for indoor sports are inadequate in the face of the growing interest and participation in such sports as indoor basketball, badminton, table tennis, and indoor bowls. There is a growing realization of this inadequacy, and steps are being taken, usually in conjunction with community-centre movements, to provide and maintain indoor sporting facilities of a high standard.

All sporting activities in New Zealand are organized on a district basis, with representatives from each district forming a national controlling body. In this way every sport has a number of associations, unions, sub-associations, &c., which control the sport in each district from the strictly local aspect, while a New Zealand association (or union) is the controlling body in all matters of nation-wide significance in that particular sport.

An exception to this arrangement, whereby each sport is responsible for its own administration, is that of selection of representatives for the Olympic and the Empire Games. There exists in New Zealand an Olympic Council made up of representatives of all sports bodies interested in Olympic and Empire Games competition. It is this Council, for instance, which decided upon Auckland as the venue for the 1950 Empire Games when the International Association allocated the games to New Zealand.

In 1939 the first attempt was made to set up an organization in which all sports would be represented, both amateur and professional. The initial response was good, provincial “Councils of Sport” were organized, and these bodies shortly afterwards formed a National Council of Sport to which each provincial Council of Sport is affiliated.

Although some sporting organizations are not represented on the Councils of Sport, yet these institutions are filling an important place in the recreational picture of New Zealand.

The plan of the Physical Welfare and Recreation Branch of the Internal Affairs Department is to assist and encourage the development of recreation in New Zealand. It owes its origin to the passing of the Physical Welfare and Recreation Act, 1937, which in the preamble succinctly states the purpose of the Branch: “To provide for the development of facilities for, and the encouragement of, physical training, exercise, sport, and recreation, and to facilitate the establishment of centres for social activities related thereto.”

To implement the above Act. Physical Welfare and Recreation Officers have from time to time been appointed. As at 1st January, 1950, there were thirty-five male and twenty female officers. These officers are located at sixteen strategic points throughout New Zealand. The work of the officers varies according to local requirements and district trends in sport and recreation, but the principal activities of the Branch as a whole may be summarized as follows:—

(i) Leadership Training for all sport and recreation groups, the emphasis to date being on the training of leaders for social recreation groups such as those organized by churches and clubs. Youth organizations such as Boy Scouts, Boys Brigade, and similar institutions have also received assistance in this direction. As at the 28th February, 1950, a total of 515 persons have received Leadership Training Certificates, signifying the successful completion of a full training course conducted by the Physical Welfare and Recreation Branch. Many thousands of others have been trained to a lesser degree during the normal work of Branch officers. In the field of leadership training in sport, the Branch's efforts have been directed towards the raising of the standard of sports coaching and officiating at sports meetings, a need made apparent by the increased participation in sports generally, but particularly in such sports as indoor basketball and Softball, which have only recently been introduced.

In the field of leadership training there were two notable advances during 1949.

The first was an Advanced Church Recreation Leaders Course conducted by the Physical Welfare and Recreation Branch in conjunction with the Youth Committee of the National Council of Churches. This course was conducted on a “live-in” basis in two parts. Sixty carefully selected certificated leaders underwent a course of instruction calculated to enable them in turn to train leaders for recreation club work.

The second course, also residential, was conducted in conjunction with the New Zealand Amateur Athletic Association, and provided expert tuition for forty athletic coaches from all parts of the country. This course culminated in practical and theoretical examinations. Successful applicants will receive recognition as official coaches from the national Athletic Association.

(ii) Organization and Promotion of Recreational Activity within each community as made evident by local needs and requirements. Field officers are required to carry out periodical area recreational surveys with a view to planning of work and the promotion of recreational activities suitable to public demand and the facilities available in a given area. A specific activity with priority in all districts is promotion of recreation clubs in rural areas.

(iii) The Promotion of Holiday Camps and Training of Camp Leaders.—Camps have been conducted directly by Branch officers, while on many occasions the services of Physical Welfare and Recreation Officers have been made available, particularly in children's camps, to organize and conduct recreational activities.

(iv) Encouraging Trumping and Mountaineering.—The Department of Internal Affairs has constructed and maintains a chain of huts in the Harper Pass area of Canterbury. On a member of occasions officers have organized tramping parties and have thus introduced many young people to the back country of New Zealand. Similar trips have been organized in other districts, using existing lints and tracks.

The success in this experimental work warrants the hope that similar facilities will he made available in other areas.

(v) Organization of Industrial Recreation.—To date this has for the most part taken the form of organizing and promoting associations which are calculated to provide sport and recreation (cultural and social) for a variety of employed groups. Organizations formed in this way are located chiefly in cities and larger towns and take the form of business firms' recreation associations, trade-union sports associations, and Public Service sports associations. Recreation activity for the most part takes the form of inter-unit sports tournaments, but there is ample room for development along cultural lines and in the broader field of recreation.

(vi) Organization and Conduct of Group Travel Tours.—The introduction of New Zealanders as well as tourists to New Zealand is relatively well provided for. The Tourist Department, some commercial travel organizations, and the Physical Welfare and Recreation Branch each have their respective fields of activity. The latter is interested mainly in the introduction of and in popularizing this mode of travel, organization and conduct of actual tours on any large scale being carried out only in the Auckland district at present. Trips by sporting organizations in which group travel and sport are combined are, however, organized throughout the country by Physical Welfare Officers.

(vii) Organizational and Practical Assistance in Learn-to-swim and Fitness Campaigns.—Extensive “Learn to Swim” campaigns are conducted each summer by the Education Department (for school-children) and by the Physical Welfare and Recreation Branch in conjunction with swimming associations (for adults). Frequently the two organizations combine in specific district campaigns.

During the 1949–50 summer an extensive publicity campaign was conducted in an effort to decrease the incidence of deaths by drowning.

Sponsored by the Physical Welfare and Recreation Branch and conducted with the assistance of a committee of interested persons, and the Information Section of the Prime Minister's Department, this campaign has made extensive use of radio, newspaper, and poster advertising. Leaflets, folders, and an educational film are scheduled for production.

(viii) Promotion of Cycle Touring Clubs in City Areas.—With the co-operation of the cycle trade, this activity has been introduced by Branch officers in main centres, and a national association is being formed. As a form of group travel, it is an interesting example of the work of the Branch in enabling some of our younger people to enjoy the beauties of New Zealand's natural scenery.

(ix) Production of Sports Coaching and Information Material.—Recreation information bulletins are published from time to time by the Head Office of the Physical Welfare Branch. A library is maintained and photographs and films are loaned to interested organizations through district officers. Active steps are being taken to provide literature on a wide variety of topics relating to sport and recreation, and a library is being built up of films and photographs of use to sports and recreational institutions to assist in coaching those interested in particular activities. General recreational material is distributed to all certified recreation leaders.

(x) Advice and Information.—Physical Welfare and Recreation Offices may be termed “District Bureaux” to provide advice and information on all recreational matters to interested inquirers. In addition to such general duties, Physical Welfare Officers provide a liaison not only between the Government and local recreation authorities, but also between associations, the local authorities, and other interested societies and clubs. In addition to assisting the local Councils of Sport in every possible way, officers also assist sporting clubs and societies requesting such assistance.

A most important feature of the liaison work is that of establishing contact between children leaving school and adult sporting and recreational organizations. This is achieved through direct interviews with senior pupils of schools and colleges and through the distribution of illustrated brochures publicising the work of the Branch and indicating that assistance in the taking-up of any form of sport or recreation is available from the Physical Welfare Officers of the district concerned. A similar service is tendered to all immigrants.

(xi) Community Centres.—A noteworthy trend in New Zealand of recent years has been the formation and planning of community centres in many districts. This trend has been facilitated by the Government subsidy on a pound-for-pound basis for such “living” war memorials as community centres, halls, and play areas. In addition to conforming to the requirements for a living war memorial, projects must be sponsored by the local authority in order to ensure future maintenance.

Physical Welfare Officers have assisted established community centres with advice and practical instruction to keep-fit classes, sports clubs, and similar bodies, and in the provision of printed material conveying information on community centres both in New Zealand and overseas.

Financial assistance is also available to community centres not established as war memorials. Details of such assistance are given in the next paragraph.

(xii) Financial Assistance for Sport and Recreation.—Provision was made in the Physical Welfare and Recreation Act, 1937, for the making of grants by the Government to assist sport and recreation. In February, 1946, £10,000 was made available to cover the remainder of the 1945–46 financial year, £35,000 was made available in 1946–47, and £50,000 in the 1947–18 and later years. These sums have been disbursed in grants of varying amounts to all types of sporting and recreational organizations, and throughout have been administered by the Physical Welfare and Recreation Branch.

The basis for allocating grants is a subsidy not generally exceeding £1 for £3, with a maximum of £500, where the result of such grant will be the provision of recreational facilities or equipment. In other words, grants are made only for additional capital expenditure. Grants are not made for honoraria, travelling-expenses, personal uniforms, or general administrative expenses, nor where it is considered that an organization can carry out a project without grant assistance.

All types of sporting and recreational organizations in New Zealand have received financial assistance of recent years, and investigations have shown that such grants have been of great importance in providing facilities for the growing number of participants in active sports throughout the country.

Generally speaking, New Zealanders are very sports conscious and the percentage of participants to spectators in sport is relatively high, but, as in every other country, physical examination of recruits for the Armed Services, during the war years and subsequently, reveal that there is no ground for complacency, but rather that further vigorous steps must be taken towards the ideal of national fitness and a full life through recreative activity.

(xiii) Training of Officers.—Though in-service training has been the rule since the inception of the Physical Welfare and Recreation Branch in 1939, there has been a growing realization that specialized and specific training is required for officers. Training schemes for junior officers embracing a two-year training period have been carried out since 1946, At present junior women officers are undergoing such training. For the training and direction of field officers, ten-day regional courses are to be conducted.

5 B—HOSPITALS AND CHARITABLE INSTITUTIONS

HISTORY.—Authentic information regarding the earliest steps taken to establish public hospitals is meagre. In July, 1841, mention is made in the New Zealand Government Gazette of the appointment by the Government of the first Colonial Surgeon with Auckland as his headquarters. Apparently there was some institution in existence for European patients who obtained admission by applying to the Colonial Secretary, who was the only person having this authority. In the case of Maoris it was different: all that was required of them was to present themselves at the institution.

Due to Governor Grey's efforts, which were at first criticized by many, the Government in 1846 consented to grant money for the erection of hospitals in each of the four centres—Auckland, Wellington, Wanganui, and Taranaki—for the treatment of sick and destitute Europeans and free treatment for all Maoris. The foundation stone of the Wellington Hospital was laid in November, 1846, whilst the Auckland Hospital was founded the following year.

It is recorded that the first Dunedin Hospital was built in 1851, and that Christchurch was first served by a hospital at Lyttelton known to have been operating in 1853.

In 1854 control of public hospitals was vested in the six Provincial Councils of Auckland. Taranaki, Wellington, Nelson, Canterbury, and Otago, but in 1876, following the abolition of the provinces, the hospitals reverted to the General Government.

As the result of a conference between local authority representatives and the Government in 1878 the first two hospital districts as they are now known were formed. They were based respectively on the hospitals of Dunstan (Clyde) and Cromwell. However, hospitals generally remained under Government control until 1885 when the first Hospitals and Charitable Institutions Act was passed. By it New Zealand was divided into thirty-eight hospital districts, each under the control of its own Board.

In 1886 the Hospital and Charitable Institutions Amendment Act was passed giving power to two or more hospitals to join into a united district and control their own affairs. The legislation followed a recommendation of the Inspector of Hospitals that thirteen of the thirty-eight hospitals be closed as the population in some districts was insufficient to support a fully-equipped hospital. Instead of taking advantage of this legislation districts have moved in the opposite direction, and by amending legislation, the number of districts gradually increased until by 1909 there were forty-seven: amalgamations since that date have reduced the number to thirty-seven at which it now stands.

CONSTITUTION.—A “hospital district” comprises one or more counties and includes boroughs and town districts within the boundaries of the county or counties. The County Councils, Borough Councils, and Town Boards are the “contributory local authorities” within the hospital district.

Districts vary in size from Auckland with a population of 356,980 down to Maniatoto which has only 2,930 people. However, most of the districts small in population are large in area.

A Board consists of one or more representatives of each contributory local authority, the number being fixed by the Governor-General by Order in Council having regard to the relative populations and relative values of rateable property of the local authority districts. The total number of members of any Board must in no case be less than eight or more than twenty.

Board members are elected by the electors of the various contributory districts in the hospital district, and the term of office is three years. Formerly electors in counties required a ratepayer's qualification, whereas electors of boroughs and town districts required only a residential qualification, and this applied even though the elected members sat on the same Board. Legislation in 1946 made the residential qualification universal.

POWERS.—A Hospital Board has power to establish, control, and manage any of the following institutions: hospitals, charitable institutions, maternity homes, convalescent homes, sanatoria, habitual inebriates' homes, reformatory institutions for women and girls, and any other institutions for any purpose which the Governor-General by Order in Council may declare to be a public charitable purpose.

A Board cannot do the following without the consent of the Minister of Health:—

  1. Borrow money for the purpose of erecting buildings, or of making additions or alterations to buildings, or of purchasing land or for paying off any loan, or for any oilier purposes of capital expenditure.

  2. Expend more than the sum of £250 on the purposes described in (a).

  3. Sell or exchange land.

  4. Close an institution.

AUTHORITY OF DIRECTOR-GENERAL OF HEALTH.—It is the duty of every Hospital Board to provide and maintain such hospitals as the Director-General of Health considers necessary in any part of the district for the reception, relief, care, treatment, isolation, and removal to hospital or “other place” of persons who are suffering from infectious or other disease or from injury.

A Board must appoint such number of medical practitioners, dentists, nurses, dental nurses, midwives, and other officers as the Director-General may from time to time deem necessary for the care and treatment of persons in the district of the Board, whether within an institution under the control of the Board or elsewhere within the district. The Director-General is authorized to visit and inspect hospitals and to appoint Assistant Inspectors, and is required to report to Parliament through the Minister on the manner in which Hospital Boards have fulfilled their duties.

FINANCE.—When Boards were first established in 1885 they obtained their revenue from the following sources:—

  1. Voluntary contributions and bequests.

  2. Government subsidy £1 for £1 on voluntary contributions and bequests.

  3. Patients' fees.

  4. Levy on contributory local authorities by rate on the capital value of land.

  5. Government subsidy on levies paid from general taxation.

Voluntary contributions and bequests and subsidy thereon at no time formed an important part of Board revenue, and in 1932 the subsidy in this connection was abolished.

In the earliest days public hospitals were meant only for the destitute sick, hut as time went on the standard of service was greatly improved and gradually was availed of by all sections of the community. The hospitals charged a fee which covered cost of maintenance, and patients able to pay were expected to do so. Fees collected were usually found to form about one-third of a Board's total revenue.

Until 1923 the subsidy on levy was paid at the rate of £1 for £1 for both capital and maintenance purposes, but in that year the subsidy on account of maintenance was amended to a scale which had relation to the burden of levy on the rates of local authorities: the Board with the highest burden was paid 26s. subsidy; the Board with the lowest burden was paid 14s. subsidy; the average of all Boards remained at 20s. subsidy.

Under the Social Security Act, 1938, a charge was made on all salaries and wages and other income, and the proceeds were paid into a special fund named the Social Security Fund. The charge was fixed at 1s. in the pound, and in 1946 it was raised to 1s. 6d. in the pound. The Act was to provide, inter alia, “a system whereby medical and hospital treatment will be made avilable to persons requiring such treatment.” The effect of this change was to transfer the liability for payment of patients' fees from the patient to the Social Security Fund, the one-third of revenue derived from patients now being provided by the Fund. The charge on the Fund was fixed at 6s. per patient per day being the average collection made by the Boards from patients. To keep up with the rising cost of maintenance the rate in 1943 was increased to 9s. per day.

At this stage the proportions of revenue derived from the three main sources of Social Security Fund, levy on local authorities, and Government subsidy from general taxation were almost even. Rising costs led to increases in the levies on local authorities and property owners complained that they were being asked to carry an unfair burden as compared with other sections of the community. As a result legislation was passed in 1946 limiting the levy on contributory local authorities to 0.5d. in the £1 of rateable capital value and this had the immediate effect of transferring a substantial portion of Boards' cash requirements from levy to the subsidy paid from general taxation. Also it followed that any further increases in cost would fall solely on the subsidy except to the extent that increases in rateable capital value of property increased the amount of levy. In consequence of this development the proportions of revenue derived from the main sources have changed. The approximate position at 31st March, 1948, was Social Security Fund, 33 per cent.; levy, 18.5 per cent.; subsidy, 47.5 per cent.

With over 80 per cent. of Board revenue now payable from Government funds the position is little different from that of 1876 when on the abolition of the Provincial Councils the full cost of hospital services had to be met by general taxation. The Government is once again in the unenviable position of having to withstand demands from Boards anxious to have institutions built, equipped, and staffed to give the highest possible standard of service

Board expenditure is subject to a measure of control by the Minister of Health. Hoards are required in the month of April each year to make an estimate of their expenditure for both capital and maintenance purposes and to have the estimates confirmed at a special meeting of the Board. Since 1923 they have been required to submit the estimate to the Minister who may, if he thinks it necessary so to do, require the Board to amend the amount submitted.

Receipts.—Following is a summary of the receipts and payments of all Hospital Boards for the years ended 31st March, 1947 and 1948.

1946–47.1947–48.
 ££
Voluntary contributions and bequests20,7425,022
Payments from Social Security Fund and by inmates of old people's homes2,585,9902,548,546
Levies1,897,4401,347,605
Subsidies2,010,9833,016,121
Rent, interest, and dividends41,75937,696
Sale of capital assets17,12715,051
Miscellaneous129,67274,259
 6,703,7137,044,300
Loans for capital works368,9811,024,387
        Totals7,072,6948,068,687

Payments.—Payments during the same two years are now given:—

1946–47.1947–48.

*Includes hospital valued at £600,000 taken over from Government by Auckland Hospital Board.

 ££
Hospital maintenance4,960,1145,643,579
Old people's homes maintenance143,644162,089
Charitable aid: Outdoor21,26519,171
Subsidies to private hospitals, &c.35,09250,404
District nursing43,80554,729
Administration173,577186,577
National Provident Fund contributions22,62752,724
Miscellaneous—  
  Maintenance54,32379,475
  Capital45,95543,514
Interest on loans172,392184,074
Amortization of loans246,847276,862
Capital works other than “loan”506,524554,507
 6,426,1657,307,705
Loan works409,757969,670*
        Totals6,835,9228,277,375

Hospital Maintenance Costs.—The average annual cost of maintenance per occupied bed in the ten-year period 1938–39 to 1947–48 was as follows:—

Year.Provisions.Surgery and Dispensary.Domestic and Establishment.Salaries and Wages.Miscellaneous.Totals.
 ££££££
1938–3940.520.956.4131.74.5254.0
1939–4042.721.061.8142.54.7272.7
1940–4142.322.261.9153.35.2284.9
1941–4245.823.064.6170.76.2310.3
1942–4348.527.065.9180.66.2328.2
1943–4452.427.871.4187.06.3344.9
1944–4555.028.969.9195.26.0355.0
1945–4660.033.682.9231.27.0414.7
1946–4764.739.097.3243.48.8453.2
1947–4873.747.2117.4291.411.2540.9

Charitable Aid.—The Act of 1885 laid down for the first time that charitable aid should be associated with hospitals. Aid was both “indoor” and “outdoor,” the indoor being mainly the provision of homes for aged and, destitute people and the outdoor the provision of food, clothing, &c., for people in necessitous circumstances.

The passing of the Social Security Act, 1938, reduced materially Boards' charitable-aid activities. Practically all people over the age of sixty without means or having only limited means are entitled under this Act to an age-benefit. Most of the inmates of old people's homes are in receipt of this benefit and pay a substantial portion of their benefit to the Board to cover board and lodging. Therefore a large portion of the cost of maintaining old people's homes can no longer be classed as charity.

The introduction of invalidity benefits in 1936 and sickness and unemployment benefits in 1938 relieved Boards of an appreciable amount of expenditure on outdoor relief.

Expenditure over the past eight years on old people's homes and outdoor relief is sot out hereunder:—

Year.Maintenance, Old People's Homes.Outdoor Relief
 ££
1940–4177,79147,087
1941–4282,82043,730
1942–4380,96837,238
1943–4483,54037,460
1944–4594,35538,197
1945–46112,26132,536
1946–47121,72221,687
1947–48137,49320,028

Cost to Local Authorities and Government.—The following is a comparative statement of levies on local authorities and subsidies paid by Government during each of the five financial years ended in 1947–48:—

Year.Levies.Subsidies.Total.
 £££
1943–441,250,7561,124,1152,374,871
1944–451,316,5111,344,0282,660,539
1945–461,544,6761,645,3233,189,999
1946–471,889,0451,937,5713,826,616
1947–481,347,4413,321,3784,668,819

The reduction in levy in 1947–48 with corresponding increase in subsidy is due to the limiting of the levy to 0.5d. in the £1 of rateable capital value as from 1st April, 1947.

Loans.—Boards have been authorized by the Minister of Health to raise loans to cover a very extensive building programme, but in recent years building progress generally has been slow because of shortage of labour and materials. In consequence, many loans authorized have not yet been floated or have been floated only in part.

The position of loan liability is as under:—

Year.Amount Floated.Repayment.Balance.Reducible by Sinking Fund.
 ££££
1945–46406,659213,2994,616,151101,957
1946–47366,718241,5994,741,270115,320
1947–48425,425276,6704,889,845111,769

PUBLIC HOSPITALS.—Subsection F of the preceding section contains statistics of in-patients treated at public hospitals other than purely maternity hospitals. In the following table the figures are inclusive of maternity hospitals, sanatoria, &c., and relate to the financial year instead of to the calendar year.

Year.In-patients treated.Average Number of Occupied Beds.Beds available.
Total Number.Proportion per 1,000 of Population.Number.Proportion per 1,000 of Population.Number.Proportion per 1,000 of Population.
1943–44171,828105.010,7536.513,5878.3
1944–452,390105.411,5126.913,4018.1
1945–46177,167103.511,2916.613,8708.1
1946–47179,903101.510,9476.213,8227.8
1947–48174,8.496.410,2975.714,1237.8

The number of in-patients, per thousand of population, in hospital districts varies from three to ten, and it follows that a much greater sum per head of population is being spent in some districts than in others. Many difficulties are met in laying down a definite figure as a standard of hospital-bed establishment owing to the varying circumstances encountered in different districts. Among the factors which influence the demand for public hospital accommodation are the habits of the population in seeking to enter hospitals for various types of illness, the availability of medical practitioners and their habits in sending patients to hospital or retaining them for home treatment, and the availability of private-hospital beds. Housing facilities, domestic assistance, and private or district nursing assistance, and the efficiency of the out-patient department are other factors.

The number of institutions coming under the heading of public hospitals for the year ended 31st March, 1948, was 172, comprising 78 general hospitals (5 of which were also old people's homes, and 3 special hospitals), 1 chronic hospital, 3 convalescent hospitals, 78 maternity hospitals, 6 tuberculosis sanatoria, 1 tuberculosis prevention institution, 2 chronic-tuberculosis hospitals, 1 tuberculosis dispensary, and 2 infectious-diseases hospitals. A comparison of beds and patients is as follows:—

 1943–44.1944–45.1945–46.1946–47.1947–48.

*In addition, dental cases treated during the year and attendances were: Auckland. 2,160, 6,882; Wellington, 16,707, 28,350; Hutt, 3,645, 7,496; Christchurch, 4,383, 21,790; and Timaru, 1,214, 3,514.

Number of institutions153153155164172
Number of beds—     
  General8,6888,3208,6578,4098,543
  Children's cots1,4571,4631,5371,5251,622
  Maternity9581,0621,1301,4281,542
  Tuberculosis1,5491,6331,7631,7201,700
  Infectious disease935923783740716
    Totals13,58713,40113,87013,82214,123
Average number of occupied beds per diem.10,75311,51211,29110,94710,297
In-patients treated during year171,828172,828177,167179,903174,814
Deaths during year7,2817,4647,6857,5567,058
Out-patients—     
  Number358,210381,600414,023444,486447,548*
  Attendances1,129,7031,168,3181,176,5101,191,0741,171,245*

PRIVATE HOSPITALS.—The control and licensing of private hospitals is provided for in Part III, Hospitals Act, 1926.

In particular, the Act lays down the stalling standards and provides that no building may be used as a private hospital without the consent of the Director-General of Health. When formalities in connection with applications for licences are completed the approval of the Minister of Health is requested for the grant of a licence.

The total number of private hospitals licensed in New Zealand at 31st March. 1950, was 199, providing 514 maternity beds and 1,085 beds for general cases.

The Social Security Act, inter alia, provides for the payment to licensees of private hospitals (who have entered into contracts under the Act) of prescribed amounts in respect of hospital treatment afforded by them. Particulars are contained in Section 26, “Social Security, Pensions, Superannuation, &c.”

HOSPITAL ACCOMMODATION.—The latest available statistics in regard to the number of beds available in hospitals (public and private) are as at 31st March. 1949. In the following survey, which compares the position as at the 31st March, 1940 and 1949, no account is taken of mental hospitals.

The number of available beds were provided as follows:—

 1939–40.1948–49.
By Hospital Boards9,43613,743
By Health Department303393
By licensed, private hospitals2,7652,488
    Totals12,50416,624

Not all the beds shown as “available” for 1948–49 are in fact correctly so described. By reason of acute shortages of staff (particularly nursing staff) in certain hospitals, nearly 1,000 general beds in public hospitals were closed for the time being. A more recent survey places the number of beds temporarily closed on account of staff shortages at approximately 850.

The respective numbers of hospitals were:—

 1939–40.1948–49.
Hospital Board hospitals122168
Health Department hospitals67
Private hospitals294205
    Totals422380

The distribution by typos of bed was as follows:—

 1939–40.1948–49.
General—  
    Hospital Boards6,6039,770
    Health Department213283
    Private hospitals1,7221,813
 8,53811,866
Maternity—  
    Hospital Boards5981,527
    Health Department90110
    Private hospitals1,043675
 1,7312,312
Tuberculosis: Hospital Boards1,2031,692
Infectious diseases: Hospital Boards1,032754
 2,2352,446
        Totals12,50416,624

The number of available beds in 1949 was equivalent to 9.0 per thousand of mean population as compared with 7.7 per thousand in 1940.

From the foregoing it will be seen that the number of general beds in private hospitals has increased by 91 only, while the number of maternity beds in such hospitals has fallen by 368 or 35.3 per cent. Another striking feature is the decrease in the number of infectious-diseases beds, from 1,032 to 754.

MATERNITY SERVICES.—Benefits under the Social Security Act, 1938.—The Social Security Act, inter alia, makes provision for payments from the Social Security Fund to hospitals, medical practitioners, and nurses for services in connection with maternity cases.

Particulars of maternity benefits provided under the Act will be found in Section 26, “Social Security, Pensions, Superannuation, &c.”

At the end of 1949 there were 237 maternity hospitals with a total available bed accommodation of 2,339, made up as follows:

Public hospitals1,520
Private hospitals690
State (St. Helens) hospitals110
Alexandra Home (Wellington)19
Total2,339

The total number of confinements in maternity hospitals in 1949 was 46,123, of which 29,975 were in public maternity hospitals, 13,477 in private hospitals, 2,239 in St. Helens Hospitals, and 432 in the Alexandra Home, Wellington. Of the total confinements 44,292 were confined at the full term and 1,831 at from 7–9 months. In addition, there were 3,532 admissions for ante-natal treatment. These figures are inclusive of Maoris.

State Maternity Hospitals.—There were formerly seven State maternity (St. Helens) hospitals, but in 1933 two—Wanganui and Gisborne—were banded over to the control of the Wanganui and Cook Hospital Boards respectively, and at the end of 1937 the St. Helens Hospital, Dunedin, was closed. Prior to the advent of the maternity benefits under the Social Security Act, the use of these hospitals was restricted to oases where the husband's income did not exceed £5 per week, and in cases of large families £6 per week. There are now no restrictions in this respect, and all service is free to the patient. The main function now served by these hospitals is to provide extended training for maternity nurses, so that they may qualify for the more responsible work of midwives.

This service is given under the supervision of the Medical Superintendent, who is also responsible for the conduct of all abnormal cases and for the supervision of the ante-natal and post-natal care of all patients attending. There is also an out-patient department attached to each hospital, which provides nursing services for patients not entering the institution.

District Midwives and Maternity Nurses.—A considerable number of Hospital Boards have district nurses, who in most cases carry out some obstetrical work in conjunction with other health work. In addition, there are Health Department district nurses appointed for the purpose of attending the Maori population, part of their work being attendance on Maori women during confinement.

Ante-natal Services.—Since maternity benefits have been provided free to patients under the Social Security Act and medical men have been paid a fee under that Act for giving ante-natal, neo-natal, and post-natal attention, the bulk of the ante-natal attendance has been provided by the patient's own medical attendant, this being one part of the service for which he receives a fee. The doctor's attendance, if desired, is supplemented by that of the midwife in charge of an ante-natal clinic. These free ante-natal clinics are established in connection with the four St. Helens Hospitals, all public maternity hospitals or maternity wards, and a number of clinics conducted by the Plunket Society. In the case of women living far from the main centres of population, the work is also supplemented by the district nurses who are employed by the Health Department or by Hospital Boards.

The majority of women now realize that ante-natal care is as essential to then-welfare as attendance during their delivery and lying-in period by a doctor and trained maternity nurse or midwife. The Department has supplemented the service by the free distribution of a pamphlet “Suggestions to Expectant Mothers,” which has served its purposes as propaganda for ante-natal care.

Every effort is being made to impress the public with the importance of parental hygiene and systematic ante-natal care throughout pregnancy. Addresses and lectures are delivered by Medical Officers of the Department of Health to nurses and societies interested in this subject. So that there will be definite co-operation between the midwife and the ante-natal clinic, and in order that the midwife may be informed of the clinical methods adopted by the Health Department, refresher courses of lectures, particularly on ante-natal work, are available to all registered midwives and maternity nurses.

BENEVOLENT INSTITUTIONS AND ORPHANAGES.—One hundred and eighteen institutions classed under the heading of benevolent and orphan institutions furnished returns to the Census and Statistics Department for the year 1947, the latest year for which these statistics have been compiled. These institutions, which are conducted by Hospital Boards, religious bodies, and other public or semi-public organizations, are alike in that they provide accommodation on a benevolent or charitable basis, but differ largely in the classes of persons to whom they afford assistance. The generic name covers old people's homes, maternity and refuge homes for women and girls, orphanages, homes for the infirm or afflicted, “prison gate” homes, and an institute for the blind. Some of the orphanages deal with cases similar to those dealt with by the special schools under the control of the Education Department, and a few of the women's institutions receive offenders committed to them by the Courts.

The following table gives particulars of admissions, discharges, &c., during each of the five years quoted.

Number of InstitutionsAdmissions during Year.Births in Institutions during Year.Discharges during YearDeaths in Institutions during YearInmates at 31st December.Total Inmates during Year.
19431206,4962916,3273275,38512,039
19441204,5013274,5603185,31910,197
19451195,7112915,7693445,20811,321
19461173,7702983,8553545,0679,276
19471133,6792603,9053264,7759,006

A substantial decrease in the number of inmates of charitable institutions has occurred during recent years, but the actual position is obscured by the fact that certain inmates of institutions under the control of Hospital Boards are now supported by hospital benefits from the Social Security Fund, and are no longer counted in these statistics. Such inmates are now included in the statistics relating to public hospitals.

The next table gives similar information for the year 1947, classified according to the class of authority controlling the institutions.

Controlling Authorities.Number of Institutions.Inmates at 1st January.Admissions during Year.Births in Institutions during Year.Discharges during Year.Deaths in Institutions during Year.Inmates at 31st December.Total Inmates during Year.
Hospital Boards21872768 5741579091,640
Church of England14567281373452538885
Roman Catholic Church171,566669337381021,4282,268
Presbyterian Church16392183 15618401575
Methodist Church5235110 8020245345
Baptist Church25325 27 5178
Salvation Army278541,2861571,494197842,297
Brethren13023 27 2653
Undenominational associations, &c.15498334334648393865
    Totals1185,0673,6792603,9053264,7759,006

In many cases there is a variation in the class of inmate provided for by the different controlling bodies. For instance, none of the homes under the supervision of the Presbyterian Church, the Methodist Church, the Baptist Church, or the Brethren are maternity homes of any description. The four churches mentioned control children's homes and orphanages only, while the Church of England and the Roman Catholic Church provide chiefly for children, although some maternity oases are dealt with. The Hospital Boards concentrate chiefly upon old people's homes, while the Salvation Army deals with all types, and is the only body that conducts extensively the “prison-gate” or industrial type of institution. Factors such as these affect the demands made upon the different institutions for accommodation or relief.

The ages and sexes of all inmates in the institutions at 31st December, 1947, were as follows:—

Age-group.Males.Females.Totals.
Under 5 years178171349
5 and under 10 years452408860
10 under 15 years5714491,020
15 under 17 years73135208
17 under 25 years41150191
25 under 35 years4568113
35 under 45 years5153104
45 under 55 years9077167
55 under 65 years173111284
65 years and over8546221,476
Unspecified 33
    Totals2,5282,2474,775

Some remarkable differences in the sex proportions at the various age-groups are apparent in the foregoing table. In the first group there is naturally little relative disparity, but in the groups covering ages 5 and under 15 years, there is a considerable preponderance of males. The next three groups, covering ages 15 and under 35 years, show a large excess of females. The number of females in these groups, of course, is greatly increased by the inclusion of girls and women entering maternity homes. From age 45 onwards a distinct male excess is observed.

The overwhelming majority of males dependent upon charitable aid at these later ages is indeed remarkable, although the “prison-gate” and industrial type of home no doubt swell the numbers at this stage.

The next table contains information concerning inmates of orphanages and of & few other institutions which provide for both children and older people. The figures relate to inmates under the age of twenty-one who were admitted to the institutions during 1947.

Age, in Completed Years.Legitimate.No Information as to Legitimacy.Illegitimate.Totals.
Father and Mother both Alive.Father Dead, Mother Alive.Father Alive, Mother Dead.Father and Mother both Dead.No Information as to Orphanhood
039   1 4686
130332 1 740
23832 1 650
3544101  1180
467108   792
57676   392
67676   392
777510 1  93
87477   290
963681  280
1053581  471
114111412 160
123168   247
1323351  133
1418122  225
158 32   13
162 31   6
17  1    1
181  1   1
19  1    1
20        
Not stated        
    Totals79065113128 991,087

Contrary to what might generally be expected, the above figures reveal that children both of whose parents are alive constitute a substantial majority of those admitted to homes. Cases where both parents are dead are comparatively few.

5 C—MENTAL HOSPITALS

THERE are ten public mental hospitals in New Zealand maintained wholly or in part out of the public revenue. There is also one private hospital licensed for the reception of the mentally afflicted.

The patients on the register at the end of 1949 were distributed as shown below. Numbers given throughout this subsection are inclusive of Maoris. Figures for Maoris are also given separately toward the end of the subsection.

Statistics showing the numbers of voluntary patients are excluded train the following series of tables, though they are given under the appropriate heading later on in this subsection.

Mental Hospital.Males.Females.Totals.
Auckland7537331,486
Kingseat (Papakura)443401844
Raventhorpe (Drury)3235238
Tokanui426378804
Levin Farm22281303
Porirua6676611,328
Nelson5884411,029
Seaview (Hokitika)239258497
Sunnyside (Christchurch)7237111,434
Seacliff and Waitati6104311,041
Ashburn Hall (private mental hospital)121830
    Totals4,6864,3489,034

The number of patients remaining at the end of each of the last five years is shown in the following table. During the period covered by the table the number of patients shows an increase of 630 or 7.5 per cent., but the proportion per 10,000 of population has fallen from 49.59 to 48.02, although there has been a slight increase in this figure for the last year.

Year.Patients remaining at 31st December.Proportion per 10,000 of Mean Population
Males.Females.Totals.Males.Females.Totals.
19454,4703,9348,40454.0645.3349.59
19464,5564,0468,60251.7945.8948.84
19474,5674,1418,70850.6046.0048.31
19484,6124,2208,83249.9745.9447.96
19494,6864,3489,03449.6246.4248.02
  Average of five years4,5784,1388,71651.1345.9348.52

The total number of patients under supervision care, or control during 1948 and 1949 was 10,391 (5,353 males and 5,038 females) and 10,475 (5,327 males and 5,148 females) respectively. The average number resident in mental hospitals was 8,145 in 1948 and 8,287 in 1949.

ADMISSIONS.—The total admissions to mental hospitals during the year 1949 was 1,482 (654 males and 828 females), this number not including 161 transfers from one institution to another. The principal causes of insanity as assigned on admission for the years 1948 and 1949 were as follows:—

Cause.1948.1949.
Heredity913
Congenital201176
Previous attack298335
Puerperal state1527
Senility297254
Involution3738
Mental stress8182
Syphilis1212
Constitutional368398
Alcohol1113
Epilepsy1924
Organic brain disease923
Physical disorders7287
Drug addiction3 
    Totals1,4321,482

Of the 1,482 persons admitted to mental hospitals during 1949 those admitted for the first time to any mental hospital in New Zealand numbered 1,146 (514 males, 632 females), and those readmitted 336 (140 males, 196 females). First admissions for the year 1948 totalled 1,134 (524 males and 610 females), and readmissions 298 (128 males and 170 females).

The figures for 1949 represent one first admission for every 1,641 persons of the mean population of New Zealand. The number of first admissions and the rate per 10,000 of mean population for each of the last five years were as follows:—

Year.Number of First Admissions.Proportion per 10,000 of Mean Population.
Males.Females.Totals.Males.Females.Totals.
19455575611,1186.746.466.60
19465446211,1656.187.046.61
19475976161,2136.616.846.73
19485246101,1345.686.646.16
19495146321,1465.446.756.09
  Average of five years5476081,1556.116.756.43

AGES OF INMATES.—A summary is given showing the ages of patients in mental hospitals at the end of 1949.

Age, in Years.Males.Females.Totals.
1 and under 5562177
5 and under 1013583218
10 and under 1514698244
15 and under 20231163394
20 and under 305954461,041
30 and under 408546341,488
40 and under 507927261,518
50 and under 607137711,484
60 and under 706417791,420
70 and under 80390460850
80 and under 90106142248
90 and over5510
Unknown222042
    Totals4,6864,3489,034

Probably symptomatic to some extent of the ageing of the New Zealand population the number of patients aged sixty years or over has formed a greater proportion of admissions during recent years. Of those remaining in mental hospitals at the end of 1949, patients in this age group numbered 2,528—i.e., 28.0 per cent. of the total.

DISCHARGES AND DEATHS.—The next table gives the average number resident those who were discharged as recovered, and those who died, during the period 1945–49.

Year.Average Number resident.Discharged as recovered.Died.
Number.Percentage of Number admitted.Number.Percentage of Average Number resident.
19457,91846033.536478.17
19467,97245331.615506.90
19478,06256137.185657.01
19488,14553537.365536.79
19498,28751134.485496.64
  Average of five years8,07750434.885737.09

The table following shows the duration of residence in mental hospitals of patients who died and of patients who were discharged as recovered during the year 1949. Of those discharged as recovered, 69 per cent. had been inmates for less than one year.

Duration of Residence.Patients who died.Patients discharged as recovered.
Males.Females.Totals.Males.Females.Totals.
Under 1 month465197141933
1 month and under 3 months3623593671107
3 months and under 6 months2024443667103
6 months and under 9 months101323383573
9 months and under 12 months101020143347
1 year and under 2 years182644394887
2 years and under 3 years141731101727
3 years and under 5 years1320334812
5 years and under 7 years111425246
7 years and under 10 years121527358
10 years and under 12 years5712213
12 years and under 15 years8715213
15 years and over6231932 2
Died during absence151126   
      Totals280269549202309511

Old age and diseases of the circulatory system are the principal causes of death among mental hospital patients. The figures for the principal causes and groups of causes for the years 1948 and 1949 are as follows:—

Cause.1948.1949.
Tuberculosis2922
Cancer1312
Other general diseases149
General paralysis of the insane26
Epilepsy1114
Other diseases of the nervous system4935
Diseases of the circulatory system173168
Diseases of the respiratory system111118
Diseases of the digestive system18
Diseases of the genito-urinary system87
Old age108117
External causes65
Died during absence2828
    Totals553549

The next table shows for all admissions since 1876 the percentages of patients who were discharged (as recovered and relieved, separately), who died undischarged, or who still remained at the end of 1949.

Males.Females.Totals.

* Includes a small number of patients discharged whose condition was not Improved

Discharged—Per Cent.Per Cent.Per Cent.
  Recovered32.8838.1935.28
  Relieved*12.2213.4012.83
Died39.8532.0936.29
Remaining at end of 194915.0516.3215.60
        Total admissions, 1876–1949100.00100.00100.00

PRIVATE MENTAL HOSPITAL.—A licence may be granted to enable a private mental hospital to receive patients for treatment. Stringent conditions are attached to the issue of such a licence, which may be revoked at any time. The Director of the Mental Hygiene Division of the Health Department has wide powers in the regulation and control of private institutions, which are placed practically on the same footing as public mental hospitals in regard to inspection and other matters.

There is only one licensed private mental institution in New Zealand, that at Wakari (Ashburn Hall), near Dunedin, established in 1882. Particulars of admissions, discharges, deaths, and patients remaining, for the last five years, are as follows. These figures are included in preceding tables.

Year.Admissions (Including Transfers).Discharges (Including Transfers).Deaths.Patients Remaining at End of Year.
194593135
194692339
19472216738
19481015429
19491510430

MAORIS IN MENTAL HOSPITALS.—The number of Maoris admitted as patients to mental hospitals is small. The figures for the last five years were:—

Year.Admitted During Year.Remaining at End of Year.
Males.Females.Totals.Males.Females.Totals.
1945161127108100208
1946171734135106241
194724153914196237
1948262752125104229
19492.52447128104232

The above figures are also included in the tables covering all inmates of mental hospitals.

The number of Maoris remaining in mental hospitals at the end of 1949 represented a rate of only 20.45 per 10,000 of the mean Maori population, as compared with a rate of 48.02 in the case of the European population.

VOLUNTARY PATIENTS.—A person labouring under mental defect, but capable of understanding the meaning of the procedure, may seek admission to a mental hospital as a voluntary boarder. At the beginning of 1949 there were 438 such patients on the books (193 males, 245 females), and during the year 881 (377 males, 504 females) were admitted. If a voluntary boarder should after admission show mental defect sufficiently pronounced and sustained to render it improper to classify him any longer as such, application for a reception order is made to a Magistrate. During the year 1949, 23 (12 males, 11 females) were transferred from the voluntary to the ordinary register, and 10 males and 19 females died, while 801 (341 males 460 females) were discharged, leaving 466 (207 males, 259 females) on the records at the end of the year.

A feature of interest is the tendency for voluntary admissions to increase, both in absolute numbers and also in proportion to total admissions. The following series illustrates this trend.

Voluntary Patients First Admissions.
Numbers.Percentage of All First Admissions.
1915324.7
1920648.1
192512314.1
193023620.2
193521719.2
194025221.5
194535924.3
194646228.4
194753430.6
194857833.8
194957633.4

EXPENDITURE, ETC.—The total expenditure on maintenance of public mental hospitals (not including the coat of new buildings and additions) and particulars of receipts during the last eleven financial years are shown in the next table. As from 1st April. 1939, free maintenance and treatment have been provided in all public mental hospitals in accordance with the provisions of the Social Security Act, 1938. The consequent loss of revenue through the operation of the Act was recoverable from the Social Security Fund, but as from 1st April, 1945, such recoveries ceased, and from that date all maintenance expenditure has been borne by the Consolidated Fund. The amounts shown as receipts on account of patients' fees for the years subsequent to 1939–40 represent the recovery of accounts outstanding at 31st March, 1939.

Year Boded 31st March,Total Expenditure.Receipts.Net Expenditure.Gross Average Cost per Patient.
Patients' FeesSale of Produce, &c.Social Security. Fund.
 ££££££s.d.
1940658,290122,58165,956166,000303,75384112
1941685,60520,29368,641171,000425,67186114
1942709,88714,96472,832181,451440,6408994
1943738,20413,03068,870181,869474,43592125
1944766,53013,21866,198183,199503,9159542
1945827,1288,20767,433187,942563,54610061
1946940,1675,85970,500 863,80811382
19471,072,1308,22887,065 976,837128102
19481,243,3328,95888,397 1,145,977147123
19491,476,7687,99338,427 1,430,3481731311
19501,766,6591,602177,152 587,90520300

During the period covered by the foregoing table, total expenditure increased by £1,108,369, or 168.4 percent., while the gross average cost per patient rose by £118 8s. 10d. per annum, or 140.0 per cent.

As already stated, the expenditure included in the foregoing table does not include amounts spent on new buildings, additions, &c., the cost of which is met by the Ministry of Works. The sums spent in this connection fell away considerably in the later war years. Expenditure for the last three financial years, however, has amounted to £195,588 in 1947–48, £187,022 in 1948–49, and £171,443 in 1949–50, while the aggregate expenditure from 1st July, 1877, to 31st March, 1950, was £3,891,163.

Chapter 6. SECTION 6—EDUCATION

Table of Contents

THE education system of New Zealand can be understood only when it is seen against its historical background. The first settlements in the new colony were relatively isolated units each of which had to make its own provision for the education of its children. In some places the provision of schools was left to the churches, in some to private enterprise, and in others to public associations. When the provinces were established in 1852, the Provincial Councils took over education as one of their functions, but this brought no degree of uniformity to New Zealand schools, for each province tended to foster the type of school organization already established in its area. The provinces varied considerably in the efficiency of their school systems; but, in spite of some success in the face of difficulties in certain areas, at the end of the provincial period in 1876 not more than half the children between the ages of five and fifteen were attending school at all.

The present national system of free, secular, and compulsory* education is based on the Education Act of 1877. This Act followed upon the abolition of the provinces, but the provinces, though dead as political units, left their mark upon the school system. A fierce struggle between the protagonists of central and of local control ended in a victory for the provincialists, and the public schools were placed under the control of District Education Boards, which were for the most part the same bodies as the old Provincial Education Boards. The Colonial Government, however, bad to provide all the finance in the form of capitation grants, and a small Department of Education was set up in Wellington, very largely for the purpose of distributing the grants. For every school district constituted under the Act there was a School Committee, elected by householders, which, subject to the control of the Board, had “the management of educational matters within the school district.” The School Committees elected the members of the. Education Board.

As far as mere structure is concerned, this still remains the pattern of the system of school administration in New Zealand, but there have been, in the intervening years, great changes in the relative functions of the three authorities. The general tendency has been for final power and responsibility to shift from the Committees to the Boards and from the Boards to the Department. The Committees, in fact, through lack of professional executive officers and independent sources of revenue, from the very beginning were unable to take over the full powers that the 1877 Act obviously intended them to have, and for the first twenty years of national education the Education Boards were the predominant authorities in the system.

From just before the beginning of this century the Education Department began to play an increasingly important part in educational administration, partly as a result of improved means of communication. Under the Act of 1877 the Boards had been given wide powers: to administer funds from endowments and departmental grants, to appoint and remove teachers, to pay teachers' salaries according to their own scales, to establish scholarships and provide for secondary education in district high schools, and to control the inspectorate. Legislation, beginning with the establishment of a national scale of primary school salaries and staffing in 1901 and culminating in the Education Act of 1914 (still the basic measure under which the education system is administered), concentrated these powers more and more in the hands of the Department, which began to take a more detailed interest in expenditure by the Boards. The original freedom of the Boards in the expenditure of building grants was taken away, and the present system, requiring special departmental authorization for each new building, gradually became established. From 1901 onwards the Department paid over to the Boards the exact sum required for teachers' salaries, thus leaving a much-reduced capitation grant to be used by the local authorities at their own discretion. In 1914 the Department took over the control of the primary-school inspectorate.

* Every child (with certain statutory exemptions) between the ages of seven and fifteen years has to be enrolled as a pupil of either a public or a registered school.

The centralization of the inspectorate made possible a further change affecting the powers of the Boards. In 1920 a New Zealand grading scheme was instituted under which all primary-school teachers were annually awarded grading marks by the Inspectors. A teacher's total marks give him a place on a numerically graded list. Since all ordinary appointments are decided on the basis of this list, the system of appointment is in effect a national one, and the Boards have very limited powers of discretion although they make the appointments and the teachers are servants of the Boards. In 1940 biennial grading was substituted for annual grading, thus freeing the inspectors of schools in alternate years to give more time to schools. The provision of an annual grading number for teachers was, however, retained.

It does not follow, however, that, since the Boards and the School Committees have lost many of their original powers, they have ceased to play an important part in the system. The Committee's primary function is the care of school buildings, grounds, and equipment, but, in addition to this, many interest themselves very keenly in the general activities of the school and provide in each district a focusing-point for local opinion on educational matters. The Education Boards are still the initiating bodies on matters of buildings, sites, conveyance of pupils, consolidation, and provision of school facilities generally; and, although the final word often lies with the Minister of Education or the Department, the Boards have no small influence in the fixing of policy within their districts. The schools are legally their schools and the teachers their teachers, and, although in general the Boards' choices of applicants are limited by the grading system, they have much more discretion in the selection of applicants for special or key positions. The teachers' class-room activities are under the control of the Inspectors, but their general responsibility is to the Boards, and their professional life tends to centre on the Boards rather than on the Department. In spite of the apparent clumsiness of the administrative structure arid of periods of strong feeling in the past, the system at present functions remarkably smoothly, and has achieved a balance, workable if not ideal, between the claims of local initiative and national efficiency.

Post-primary education, with the exception of that given in the district high schools, was not brought by the Act of 1877 within the province of the Education Boards. Several secondary schools had been established in various ways before 1877, and those continued under their own Boards of Governors, which were in no way related to the Education Boards. The Education Reserves Act, 1877, set aside one-fourth of the educational reserves for secondary education, vesting the remainder in the Education Boards for primary-school purposes. Thus there was introduced into the colony that cleavage between elementary and secondary education that was characteristic of the English system. In the years immediately following the Act of 1877, a series of Acts set up a number of local High School Boards, each in control of its own land endowments. No effective provision was made for the inspection of these schools by any outside authority or for the co-ordination of their work with any other part of the school system.

Further secondary schools, and, from 1902 onwards, technical high schools, were from time to time established. Before 1901, fees had been charged even in district high schools. In that year free places were instituted in district high schools, and in 1902 secondary schools were offered special capitation grants if they would provide free places for deserving scholars. Under the Education Act of 1908 free places at the technical schools were granted on a more liberal basis, and by 1914 all State post-primary schools were obliged to give free places for two years at least to any pupil who had passed the Proficiency examination. In 1936 the Proficiency examination was abolished and free post-primary education to the end of the year in which he reached nineteen years of age became available to every child completing a primary-school course or on attaining fourteen years of age.

A direct effect of this movement towards free post-primary education was that the Department began to exercise an increasing degree of control over the schools. The Education Amendment Act, 1920, authorized the establishment of New Zealand staffing and salary scales for post-primary schools, and instituted the system—already operative in the case of the Education Boards—of paying over to the schools the exact sum required for salaries plus a capitation grant for incidental expenses, less the amount received from local secondary-school endowments. This, in effect, nationalized these endowments, and spread more evenly the benefits resulting from the foresight of the early settlers. As from 1st April, 1949, all revenue received by the schools was handed over to the Crown and the total cost of salaries and incidental expenses met from the Consolidated Fund. The endowment reserves themselves were vested in the Crown as from the beginning of 1950.

THE SCHOOL SYSTEM.—Perhaps the best method of sketching the outline of the school system as it now stands is to trace the career of a child as he passes through the system. He may at the age of three enter a free kindergarten under the control of the Free Kindergarten Association. At the age of five he may enter, and at seven he must enter, either a primary school under one of the nine Education Hoards, or a registered private primary school, or if living in an isolated area, or physically handicapped, the primary department of the Education Department Correspondence School. All state primary schools are co-educational. The child passes through the infant classes and Standards 1, 2, 3, and 4. At this point he will in most places go straight on to Forms I and II in the same school, but since 1922 there have been established a number of intermediate schools (under the control of Education Boards) and intermediate departments (most of them under post-primary school Boards), which take Form I and II pupils from contributing schools in their areas. Prior to 1932 these schools were called junior high schools.

On satisfying the requirements of his headmaster in Form II the child is granted a Primary School Certificate, on the receipt of which, or on reaching the age of fourteen, he becomes entitled to free post-primary education until the age of nineteen is reached. The Education Amendment Act, 1920, made provision for the raising of the school-leaving age from fourteen to fifteen years, but this change was not brought into operation until February, 1944, and all children are now required to attend school until the now leaving-age is reached. This means, in effect, that some period of secondary education is now compulsory for nearly all children. The only provision for exemption is inability to profit from the further period of education.

When a country child leaves the primary stage he may have no alternative but to enter Form III of a district high school (which is really a secondary top to a primary school and is under the same control), or enrol in the Correspondence School. In more thickly populated areas there will be either a secondary school or a technical high school available. In some towns a secondary school and a technical high school have been amalgamated to form a combined school. To these not understanding the peculiar character of the New Zealand technical high school this may seem a strange union, but the differences between schools of the two types are, except in the larger centres, relatively slight.

The technical schools, combined schools, and a few of the secondary schools run evening classes, particularly in practical and vocational subjects, which an adolescent may attend after he leaves full-time day school. Apprentices in some trades are required to attend evening classes as a part of their trade training. In 1948 approval was given to the establishment of day classes for apprentices in certain trades.

Prior to 1944 all pupils desiring to undertake a University course were required to sit and pass the University Entrance Examination conducted by the University of New Zealand. In 1944 a system of accrediting came into operation. Under this system pupils attending certain approved schools may be accredited for matriculation purposes provided they have completed a four years' post-primary-school course. The University Entrance Examination is still conducted by the University of New Zealand, and pupils not accredited for entrance to University may qualify in this manner. The standard of the present entrance examination is somewhat higher than that maintained prior to the introduction of the accrediting system.

Pupils who have been accredited for, or who have passed the University Entrance Examination, may, without further post-primary education, receive tuition fees to the extent of £20 per annum for a period of four years at a University college.

The School Certificate Examination conducted by the Education Department is now regarded as the accepted test of a completed post-primary education for the great bulk of the pupils who do not desire to proceed to University. The School Certificate Examination is normally taken at the end of the third year of the post-primary course, and the School Certificate is awarded to pupils who pass the examination and, in other respects, have complied with the regulations governing the award of the certificate.

Provision is contained in the Education (Post-primary Instruction) Regulations 1945 for endorsement of School Certificates on satisfactory completion of an advanced course of instruction for one year. Provision is also made in the regulations for the award of Higher School Certificates. In general this certificate is awarded after a five years' course to pupils who have been awarded a School Certificate and satisfactorily complete an advanced course of two years; and to pupils who have been accredited for or have passed the University Entrance Examination and satisfactorily complete an advanced course of one year.

The University of New Zealand, whose controlling body is the University Senate, is constituted of University colleges in Auckland, Wellington, and Canterbury, and the University of Otago (which does not itself grant degrees). The School of Agriculture, consisting of Massey and Canterbury Agricultural Colleges and governed under one Council in connection with the University of New Zealand, is open to students specializing in agricultural studies.

The five teachers' training colleges, although they work in conjunction with the four University colleges, are organically related to them only through their Hoards of Studies. The Education Boards in the four main centres are the controlling authorities of the training colleges.

The State system also caters for the needs of certain special groups of children. Maori children may attend the public schools, but there are also public Maori village schools provided for their primary education. There are also a few private mission schools remaining from the pre-Maori War system established with the help of Government subsidies. For his post-primary education the Maori child may go free to any available secondary school, including seven Maori district high schools; but in certain remote areas he will go to a denominational Maori secondary school. Some of these denominational secondary schools are financed in part from public endowments especially provided, and all of them receive funds from special State scholarships.

As mentioned earlier children living in isolated areas or prevented in other ways from attending school may be enrolled in the Correspondence School for both primary and post-primary work.

In order to meet the requirements of children who are retarded in their development owing to physical or other defects, special classes have been established. These classes provide for children in certain public hospitals, for hard-of-hearing children and speech defectives, for under-nourished and physically defective children, and for children who are unable to benefit from ordinary class instruction.

Finally there are several special schools and smaller homes, administered by the Education Department's Child Welfare Branch, to take care of deaf-and-dumb, backward, or delinquent children. These are referred to under the heading, Child Welfare and Special Schools (p. 166).

In addition to the various State schools described, a parent may send his child to a private school, either primary or secondary, conducted by either religious bodies or private individuals No Government free place is tenable at these schools,* but a Secondary School Bursary (referred to on p. 163) may be tenable at a private school, while assistance for transport by rail and road and a boarding-allowance under certain conditions may also be given to pupils attending private schools, whether primary or post-primary. All private schools must be registered, and are subject to an annual inspection by the Department's Inspectors. The majority of the private schools are conducted by the Roman Catholic Church. Amongst the private schools are two endowed secondary schools modelled after the English public school.

To complete the above sketch it should be added that co-education exists only in certain stages of the system. In the public, Maori, technical, and some of the secondary schools (particularly those in the country), in the teachers' training colleges, and in the University colleges, pupils and students of both sexes attend together. The principal State secondary schools in the larger centres, however, and—with a few exceptions—all the registered private secondary schools, are single-sex schools.

* Except for Maori “Government pupils” in the denominational secondary schools.

During 1944 consideration was given to the report of the Consultative Committee on the post-primary curriculum. This report is probably the most important contribution ever made to secondary education in New Zealand. In October, 1944, the Minister of Education called a conference in Christchurch to consider pre-school education, youth services, adult education, religion in education, and rural education. It was the first widely representative conference on education held in New Zealand, and valuable reports were made on the topics under consideration. Some of the recommendations of the conference have since been put into effect.

PUPILS AND STUDENTS.—The number of pupils and students receiving instruction in the educational institutions of New Zealand is shown in the following summary. The table refers to roll numbers as at the end of the year (except in the case of technical classes, which are as at 1st July).

Class of Institution.1944.1945.1946.1947.1948.

* Exclusive of children in kindergartens (3,462 in 1948).

† There were also 1,630 students taking part-time courses.

‡ Part-time students, excluding 741 part-time students (614 in 1947), enrolled with the Technical Correspondence School.

§ Includes 917 students taking short courses at the Agricultural colleges in 1948.

Primary Education     
Public (State) schools     
Intermediate schools and depart-merits205,927209,616218,305226,806233,008
Maori village schools11,79312,19012,65413,17013,254
Maori mission schools646708730784744
Registered private primary schools29,07129,69330,77631,82032,616
Lower departments of secondary schools185170185197199
Correspondence classes (primary)1,9201,9121,8571,9721,784
Chatham Islands schools10811312410597
    Totals, primary*249,650254,402264,631274,854281,702
Post-primary Education     
Secondary schools16,90317,61717,8.617,81917,972
Combined schools3,2333,2633,3643,3513,401
Secondary departments of district high schools6,1876,8726,6566,6666,895
Technical high schools10,23310,86511,71212,32812,136
Maori secondary (boarding) schools487490563622668
Registered private and endowed secondary schools7,3788,0278,5328,9688,827
Correspondence classes (secondary)672738678618601
    Totals, post-primary45,09347,87249,40150,37250,500
Technical Classes (excluding Technical High Schools and Technical Day Schools)     
Conducted by Education, Secondary School, or High School Boards3,5673,4954,1945,6847,745
Conducted by Technical School Boards10,26410,83912,33012,72012,262
Conducted by University colleges412348333293298
    Totals, technical14,24314,68216,85718,69720,305
University Education     
University colleges5,8406,8049,8079,9009,906
Canterbury Agricultural College382564719695824
Massey Agricultural College362618737738597
Students exempt from lectures1,1461,3451,1861,4311,514
    Totals, University7,7309,33112,44912,76412,841§
    Totals, scholars and students*316,716326,287343,338356,687365,348

During the period 1939–44 the number of pupils attending primary schools remained almost stationary, but there was an increase of approximately 5,000 in 1945, followed by further increases of slightly over 10,000, in each of the next two years. The increase in 1948, although less than in 1946 and 1947, was substantial, amounting to 6,848. Factors contributing to these increases would be the low birth-rates in the depression period resulting in relatively fewer children leaving primary schools, the increase in the number of births in the years 1939–42, and the raising of the school-leaving age in 1944.

The numbers of full-time post-primary students fell away during the earlier war years, due, no doubt, to the demand for wartime labour. There was an increase of 3,086 in 1943, followed by a further increase of 6,283 in 1944, the raising of the school-leaving age being largely responsible for the latter. Since 1944 there have been further increases, but on a very much lower scale than in the ease of primary schools. In 1948 there was an actual decrease in numbers attending technical high schools, registered private and endowed schools, and in the number receiving tuition per medium of the post-primary correspondence classes.

The number of part-time students attending technical classes also fell away during the early war years, the 1942 figure being 38 per cent. less than in 1939. Each year since 1942 has recorded an increase, and the number in 1948 was 3,077 greater than in 1939, and 9,640 above the 1942 total.

University students fell from 5,979 in 1939 to 4,373 in 1942, but from then to 1946 there was a series of remarkable increases the total number reaching over 12,000 in that year. The increases since 1946 have been negligible.

ANNUAL EXAMINATIONS.—The number of candidates who actually presented themselves for the various examinations conducted by the Education Department during the last five years is given below.

Examination.1944.1945.1946.1947.1948.

* Final grade only.

Public Service Entrance2,7842,395   
Teachers' Certificate233235237265260
School Certificate6,0526,6938,3008,7068,592
Special Bursaries  196205263
London University481066
Handicraft Teachers' Certificate1213242934
Homecraft Teachers' Certificate3436405165
Technological15*24*176249309
City and Guilds of London   107107
Naval Cadetships126107 
    Totals9,1469,4108,9939,6259,636

The University of New Zealand conducted examinations in 1948 in the faculties of arts, science, medicine, dentistry, home science, law, engineering, commerce, agriculture, music, architecture and divinity; for diplomas in journalism, in banking, and in fine arts: and for admission to the legal and accountancy professions. There were 16,021 entrants for the degree and professional examinations in 1948, compared with 15,957 in 1947 and 14,455 in 1946.

The number of entries for the University Entrance Examination in 1943 was 5,152, but the introduction of the accrediting system in 1944 (see. p. 151) saw the number in that year reduced to 543. Comparative figures for the following four years were: 1945, 973; 1946, 1,773: 1947, 1,656; 1948, 1,839. The numbers accredited since the system has been in operation have been as follows: 1944, 398; 1945, 1,213; 1946, 1,484; 1947, 1,844; and 1948, 1,872. In addition, 1,320 students were granted a special concession pass on the results of the School Certificate Examination in the initial accrediting year (1944).

PUBLIC EXPENDITURE ON EDUCATION.—The following table shows the expenditure from public funds on each branch or service of education for the year ended 31st March, 1949. Owing to a change in the method of presenting the departmental accounts it is not possible to give comparable figures for individual items for previous years but the following figures of total net expenditure are comparable with the corresponding sum of £11,023,016 for 1948–49: 1944–45, £6,216,947: 1945–46, £7,853,049: 1946–47, £8,711,637; 1947–48, £9,950,818.

Gross Expenditure.Recoveries.Net Expenditure.
Expenditure from Vote, Education—£££
  General1,067,49218,9531,048,539
  Buildings, land, furniture, and equipment609,53618,254591,282
  Primary education4,070,993116,6823,954,311
  Post-primary education1,737,7239261,736,797
  Higher education659,941695659,246
  Training of teachers522,212780521,432
  Maori schools256,576118256,458
  Education of the blind12,93649612,440
  Special schools66,2236,31659,907
  Child welfare372,51833,347339,171
  Miscellaneous grants91,8962391,873
  National Library Service120,9426,054114,888
      Totals, vote Education9,588,988202,6449,386,344
  Expenditure from other sources—   
  Vote, Education Buildings1,650,39621,0711,629,325
  Secondary education, reserves revenue13,8896,5427,347
      Grand Totals11,253,273230,25711,023,016

The foregoing figures include amounts paid from reserves revenue, but not revenue received by certain post-primary schools and University colleges from endowments, fees, &c., which are available for educational purposes. The direct income from reserves vested in post-primary schools in 1948–49 was £48,900, and of University colleges, £16,700.

There is now given a series of comparative figures which shows the cost of education during the period 1938–39 to 1948–49.

Year ended 31st March,Expenditure from Public Funds.Expenditure per Head of Mean Population.
 ££s.d.
19395,099,523334
19405,563,326381
19415,355,393356
19425,218,6183310
19435,038,395315
19445,221,389339
19456,216,9473148
19467,853,04941110
19178,711,6374183
19489,950,8185910
194911,023,0165191

From the foregoing table it will be seen that public expenditure on education has more than doubled since 1944, while the amount per head of population has increased by 87 per cent. flaring the same period.

PRIMARY SCHOOLS.—The primary-school system consisted in December, 1948, of 1,932 public schools (including district high schools and intermediate schools or departments), 159 Maori village and 10 Maori mission schools, 299 registered private primary schools, and 4 lower departments of secondary schools. There were also 82 free kindergarten schools.

Lower departments of secondary schools may be run for pupils who have not passed Form II, provided that no part of the cost of instruction or of the maintenance of the department is met out of the income from endowments of the school or from Government grants. At the end of 1948 the total number of pupils in the four departments mentioned in the preceding paragraph was 199 (145 boys, 54 girls), with 6 teachers.

The curriculum of the primary school, as set out in the syllabus of instruction, includes English, arithmetic, social studies in geography and history, drawing and handwork (including needlework), nature-study and elementary science, physical education, moral instruction and health, and singing. Elementary science, agriculture, and, in some schools, dairy work are taught by the regular staff under the supervision of specialist itinerant instructors. At the Forms I and II levels woodwork and metal-work instruction is given to boys at manual-training centres, and girls are taught domestic subjects, including cookery and hygiene.

The whole of the curriculum is being systematically revised by a number of committees representative of the Education Department and of teachers' organizations. The report of the Arithmetic Syllabus Revision Committee was the first to be adopted, and during 1944 a series of arithmetic text-books was issued to primary schools. Since then revised syllabuses in oral expression, written expression, health education, spelling, history and geography, needlework, and nature study have been published and adopted in the schools. English text-books up to Standard 4 have been distributed. These text-books are issued free of charge to pupils in all schools, both State and private.

At the end of the primary course a pupil may receive from the headmaster a Primary School Certificate to the effect that he has completed the work of Form II as prescribed in the Public Schools Syllabus. This certificate replaced the Proficiency Certificate which was abolished in 1936.

Kindergartens.—Children below the age of five are not enrolled in the State primary schools. They may be enrolled, however, at free kindergartens controlled by local branches of the New Zealand Free Kindergarten Association. In 1947 a Supervisor of Pre-school Services was appointed to the Department of Education. In 1948 the Department undertook the payment of the salaries of kindergarten teachers, trainees, and full-time teachers at training centres, and the system of payment of capitation grants to the Association was discontinued. Subsidies on voluntary contributions raised for the purchase of land, erection of buildings, and purchase of initial equipment are paid by the Department. The number of trainees in 1948 was 119.

At the end of 1918 there were 3,462 children on the rolls of 82 free kindergartens. As yet the system is far from universal.

Public (State) Schools.—The figures tabulated below refer to pupils in public schools—i.e., all pupils in primary schools and intermediate schools and departments. Pupils in the secondary departments of district high schools are not included.

Year.Population at 31st December (excluding Maoris).Number of Schools (including Intermediate Schools and Departments).Pupils at find of Year.Mean of Average Weekly Roll.Average Attendance, Whole Year.Average Attendance as Percentage of Weekly Roll.
19441,575,4512,076205,927197,084175,47889.0
19451,628,7882,049209,616200,825177,99788.6
19461,679,6532,030218,305208,035181,00587.1
19471,714,9991,963226,806220,808199,44390.0
19481,750,1541,932233,008223,565202,91490.8

Of the 1,932 schools shown above for 1948, 1,232 had rolls of not more than seventy, and of these 594 had rolls ranging from one to twenty-four.

In each of the education districts are located Inspectors of Primary Schools, who form part of the staff of the Department of Education. The total number of Primary-school Inspectors on the 31st March, 1948, was 46, allocated as follows: Auckland, 15; Hawke's Bay, 3; Taranaki, 4; Wanganui, 3; Wellington, 5; Nelson, 2; Canterbury, 7; Otago, 5; Southland, 2.

The following table relates to pupils on the rolls of the public primary schools and Forms I and II only of intermediate schools at 1st July in each of the years shown.

Age, in Years.1946: Total Pupils.1947: Total Pupils.1948.Percentage of Total Pupils.
Boys.Girls.Total Pupils.1946.1947.1948.
5 and under 627,09428,02212,46211,62424,08613.212.910.9
6 and under 726,78730,52115,64914,80130,45013.114.113.7
7 and under 824,19227,43415,78714,91230,69911.812.713.8
8 and under 923,50024,49714,23513,15327,38811.411.312.4
9 and under 1022,41123,68212,30512,06524,37010.910.911.0
10 and under 1121,42722,64612,10811,64423,75210.410.410.7
11 and under 1220,95321,50711,37210,95222,32410.29.910.1
12 and under 1319,88920,17210,6629,91220,5749.79.39.3
13 and under 1412,47912,3746,8195,17511,9946.15.75.4
14 and under 155,5515,1913,0382,0365,0742.72.42.3
15 and under 169448775103068160.50.40.4
16 and over951215050100   
    Totals205,322217,044114,997106,630221,627100.0100.0100.0

In 1948 a total of 16,172 pupils (8,198 boys and 7,974 girls) left public primary schools, as compared with 15,885 (8,075 boys and 7,810 girls) in 1947. Of those leaving in 1948, 14,660, or 90.7 per cent., had gained the Primary School Certificate. The effect of the raising of the school-leaving age in 1944 is reflected in the numbers who proceeded to full-time post-primary schooling. Of those leaving in 1948, 87 per cent. (boys, 85 per cent., girls, 89 per cent.) went on to secondary school, as compared with 76 per cent. (boys 74 per cent., girls 78 per cent.) in 1943.

The next table gives the number of public primary schools in each education district as at 31st December, 1948, classified according to roll numbers. The number of intermediate schools and departments is also shown.

Roll-numbers.Education District.
Auckland.Taranaki.Wanganui.Hawke's Bay.Wellington.Nelson.Canterbury.Otago.Southland.Totals.
1–8631751213610779
9–2411226505356231044546515
25–304581181042187122
31–701804540343023724844516
71–11069121614245281211191
111–15035978268101095
151–190215458276260
191–230132156423339
231–2703 516 82126
271–310153145 54138
311–35062324171127
351–39091 37114228
391–43091245 36 30
431–4703 1210161226
471–510924 2133125
511–5501212 4 21 22
551–59041  215 215
591–630412 213  13
631–6708   2 1  11
671–7103 11  2  7
711–7501      1 2
751–7904  2  2  8
791–8301     2  3
831–8703        3
871–910          
911–950          
951–9901        1
991–1,0301        1
Intermediate schools and departments14 224 24129
    Totals591122169153201863001691411,932

Primary Schools for Maoris.—Over one-half of the Maori children in New Zealand are educated in the public schools. At the end of 1948 there were 16,591 attending public schools out of a total of 28,735 Maori children receiving primary education in State schools.

The language of instruction in the Maori schools is English, but the schools are not completely English in outlook, for Maori arts and crafts, song, legend, and history are taught.

Methods of teaching are practical, and objectives closely related to the special needs of the Maori people, in many of the Maori schools, such equipment as woodwork-rooms, cookery-rooms, model cottages, baths, hot and cold showers, and laundries is supplied. Elementary agriculture and health education feature in every Maori school.

The number of pupils on the rolls of the 159 Maori village schools at the end of 1948 was 13,254 (including 1,110 European children), while the total roll number of the ten Maori mission schools was 744.

The following table gives the principal statistics of Maori village schools during the last five years.

Year.Number of Schools at End of Year.Roll at 1st July.Average Attendance, Whole Year.Average Attendance as Percentage of Weekly Roll.Number of Teachers.*
Maori.European.Males.Females.

*Includes Junior Assistants (13 males and 101 females in 1948).

194415610,4348839,82586.9156343
194515710,94788310,17386.2171342
194615911,30591310,64786.2177357
194716011,5551,04211,15988.0193294
194815911,9891,03711,38587.0199333

Four Inspectors of Schools attached to the Education Department are engaged in the inspection of Maori schools, mission schools, and secondary schools for Maoris.

Intermediate Schools.—The intermediate school (formerly termed junior high school) was first initiated as an experiment in New Zealand in 1923. By the end of 1948, twenty-nine intermediate schools or departments had been established, of which seventeen are separate schools, eleven are attached to secondary or technical schools, and one to the secondary department of a district high school. A child may transfer to an available intermediate school after passing Standard 4 of the primary school or, with special permission of the Director of Education, on reaching the age of thirteen. Since 1932 the regular course has been two years, though in most schools, particularly where pupils are not proceeding to a post-primary school, a third-year course is available. The main purpose of the intermediate school is to secure the benefits of consolidation for the older children and, through the provision of varied and enriched courses, to help them choose rationally future school courses and occupations.

Pupils on the rolls of intermediate schools and departments at the end of 1948 numbered 10,574. The progress that is being made with the establishment of this type of school may be gauged from the fact that ten years earlier (1938), the number of pupils was 4,382. Of all children in Forms I and 11 of public (primary, and intermediate) schools at the end of 1948, 24 per cent. were enrolled at the intermediate schools. The average attendance during the year was 10,030. The ages of pupils on the roll at 1st July of each of the last three years were:—

Age, in Years.1946.1947.1948.
Boys.Girls.Total.Boys.Girls.Total.Boys.Girls.Total.
Under 115589144558113669123192
11 and under 121,0201,1652,1851,0931,2152,3081,1821,2902,472
12 and under 131,8441,8453,6891,9111,8573,7682,1352,0614,196
13 and under 141,3861,0652,4511,3971,1412,5381,4421,1512,593
14 and under 157215631,2846574631,1206714841,155
15 and under 16144892331386620410061161
16 and over177241820388715
      Totals5,1874,82310,0105,2694,84310,1125,6075,17710,784

Private Schools.—By the Education Amendment Act, 1921–22, every private school was required to apply for registration before the 13th July, 1922, and no private school can now be established unless application is first made to the Department of Education for registration. Certain standards of efficiency and suitability of staff, premises, equipment, and curriculum have to be fulfilled.

The following table contains the principal statistics of private primary schools for each of the last five years. The figures include Maori mission schools which are also shown separately in the summary table on p. 153.

Year.Number of Schools.Roll at End of Year.Average Yearly Attendance.Teachers.
Boys.Girls.Totals.Males.Females.Totals.
194430114,24715,47029,71725,989119856975
194530814,73415,66730,40126,597118864982
194630815,16316,34331,50627,5451328771,009
194730715,66416,94032,60429,4591348801,014
194830916,11317,24733,36029,8431418951,036

The majority of the schools included in the preceding table are Roman Catholic Church schools, of which there were 238 at the end of 1948, with 27,704 scholars (13,492 boys and 14,212 girls) and 792 teachers (66 males and 726 females). The average attendance was 24,680. The remaining private schools comprised 56 church schools of other denominations with 198 teachers and 4,794 scholars, and 15 undenominational schools with 46 teachers and 862 scholars.

POST-PRIMARY SCHOOLS.—Over a lengthy period of years, one of the most striking features of New Zealand education has been the proportion of pupils who proceed to some form of post-primary schooling at the conclusion of the primary course. In 1943, approximately 76 per cent. of the children leaving public primary schools and intermediate schools and departments went on to full-time post-primary schooling. Mainly as a result of the raising of the school leaving-age, this percentage had risen to 87 per cent. in 1948. The movement towards free secondary education for all began in 1901, when free places were introduced in the district high schools. In 1903 it became obligatory on all State post-primary schools to provide some free places, and from 1914 every child who had passed the Proficiency Examination was entitled to free education for at least two years in any State post-primary school. The final step was taken in 1936, when the Proficiency Examination was abolished and every child gaining a Primary School Certificate or attaining the age of fourteen years became entitled to free postprimary education until the end of the year in which he reached the age of nineteen years. Extension beyond the age of nineteen is allowable in special cases approved by the Minister of Education.

Post-primary schools are either public (State) or private. The following table shows the number and types of post-primary schools in existence during each of the last five years.

Year.State Secondary Schools.Combined Schools.Secondary Departments of District High Schools.Technical High Schools.Maori Secondary Schools.Endowed and Private Secondary Schools.Totals.
194439710121764239
194539710423768248
194640710325872255
194740710728973264
1948407108281073266

All types of post-primary schools are required by regulations made in 1945 to give to all pupils during the first two years of post-primary course a minimum number of units of instruction in the following subjects: English and social studies, general science and elementary mathematics, music and craft or fine art, and physical education.

A combined school is an amalgamation of a secondary and a technical school under a single governing body. District high schools are public primary schools with a secondary “top” and the basic course is academic, as in the normal secondary school. Where staffing and equipment allow, special courses are provided in agriculture, commercial work, and domestic science. Technical schools are described later in this section.

Until 1904, secondary schools were established by special (local) Acts of the General Assembly, and the majority of schools giving post-primary education have been established in this manner. At the present time the provisions of the 1914 Education Act allow the Minister of Education to establish such schools. State secondary schools and combined schools are controlled by Boards of Governors, and district high schools by the Education Boards.

The inspection of State post-primary schools is carried out by Inspectors of Post-primary Schools attached to the Department of Education. Commencing in 1947, these Inspectors took over the inspection of secondary departments of district high schools which were previously inspected by Primary-school Inspectors. There were (in 1948) 20 Inspectors of Post-primary Schools.

The number of pupils at the end of each of the last five years is shown in the following table. No account is taken of lower departments of secondary schools, and in the case of district high schools only the secondary departments are included.

Year.State Secondary Schools.Combined Schools.District High Schools.Technical High Schools.Maori Secondary Schools.Endowed and Private Secondary Schools.Correspondence School.Totals.
194416,9033,2336,18710,2334877,37867245,093
194517,6173,2636,87210,8654908,02773847,872
194617,8963,3646,65611,7125638,53267849,401
194717,8193,3516,66612,3286228,96861850,372
194817,9723,4016,89512,1366688,82760150,500

In addition to the foregoing, there were, in July, 1948, 20,305 part-time students attending technical classes, 2,412 students receiving part-time tuition from the Correspondence School, and 741 students receiving part-time instruction from the Technical Correspondence School.

The numbers of each sex attending post-primary schools at the end of 1948 were: State secondary schools, 9,122 boys and 8,850 girls; combined schools, 1,902 and 1,499; secondary departments of district high schools, 3,247 and 3,648; technical schools, 6,714 and 5,422; endowed and registered private secondary schools, 3,976 and 4,851; and Maori secondary schools, 310 and 358.

Technical Schools.—The technical schools fall roughly into two types: (a) Those in the small centres, which provide for all the post-primary needs and are distinguishable from secondary schools only by having in general a rather more strongly developed practical side; and (b) the large technical schools in the main centres, in which there is less evidence of the generalized academic curriculum, since this is adequately provided by the city secondary schools.

However, even in the latter type most of the courses in the day schools are still designedly pre-vocational and not genuinely “technical” in character. Technical schools are controlled either by a Board of Managers or by the Education Board of the district acting in a similar capacity.

There were twenty-eight technical schools in 1948, including two Schools of Art. The following table shows the number of pupils taking the different courses available (as at 1st July in each of the last five years).

Course.1944.1945.1946.1947.1948.
Industrial4,6325,1355,0975,0664,704
Commercial and general4,4974,7405,0505,3855,300
Domestic1,5801,9822,3672,6022,699
Agricultural649713855929968
Art456486452411411
    Totals11,81413,05613,82114,39314,082

Technical Classes.—The number of centres at which technical classes for part-time day and evening students are given was 146 in 1948. These technical classes, on the whole, are more in the nature of trade classes than the usual technical-school course, but many of the pupils attend in order to continue their general post-primary education, and a great number to be trained only in shorthand, typing, and book-keeping.

The number of individual students in 1948 was:—

Classes conducted by Education or High School Boards7,745
Classes conducted by Technical School Boards or by Managers12,262
Classes conducted by University colleges298
    Total20,305

Of the above number, 13,017 (9,148 males and 3,869 females) held free places.

The above figures do not include 3,153 part-time students at 1st July on the rolls of the Correspondence and Technical Correspondence Schools.

Probable Destination of Post-primary Pupils.—An indication of the vocations intended to be followed by pupils leaving public post-primary schools during 1948 is contained in the next table. Of the totals, 6.0 per cent. of boys and 2.6 per cent. of girls intended to proceed to full-time university studies, while a further 2.4 per cent. of boys and 6.6 per cent. of girls stated their intention of entering the teaching profession. Clerical occupations (including typing) claimed 16.1 per cent. of boys and 26.0 per cent. of girls; shops and warehouses, 9.4 per cent. and 14.6 per cent.; manual trades, 26.3 per cent. and 3.5 per cent.; farming 22.1 per cent. and 0.9 per cent.; 22.0 per cent. of girls intended to stay at home; while various other occupations claimed 10.6 per cent. and 18.2 per cent. of boys and girls respectively.

Occupation.Secondary Schools.Combined Schools.Technical High and Day Schools.District High Schools.Totals.
Boys.Girls.Boys.Girls.Boys.Girls.Boys.Girls.Boys.Girls.
University college353158542273161413494209
Teaching or training college118313125139772681195522
Professional engineering, surveying, architecture39 55 24 8 76 
Clerical (including typing)—          
Government and local authority233187427113610796112507477
Banks, insurance, legal, commercial houses, &c.514643106123142601652178271,581
Shop and warehouse assistant29336646543054431322977761,160
Manual trades—          
Government and local authority62625115825441328945
Building94 31 298 67 490 
Motor engineering84 35 206 54 379 
General engineering84 21 252 31 388 
Printing2728133341727
Other trades13010327 2971029714551219
Farming51827181 57515551321,82574
Factory operatives51472151021594271197292
Other occupations21847338902203721232125991,147
Home32526914935470455941211,739
Not known9814823222842245547460441
Totals2,9482,9996655993,1792,6141,4541,7048,2467,916

Duration of Stay at Post-primary School.—The following table gives particulars of pupils who left public post-primary schools in 1948, classified according to years of attendance. The approximate average length of stay at the various types of school was: secondary schools, 3 years 2 months; combined schools, 3 years 0 months; technical high and day schools, 2 years 4 months; secondary departments of district high schools, 2 years 3 months; all post-primary schools, 2 years 8 months.

Year of Attendance.Secondary Schools.Combined Schools.Technical High and Day Schools.District High Schools.All Schools.
Number.Per Cent.Number.Per Cent.Number.Per Cent.Number.Per Cent.Number.Per Cent.
First5128.61088.51,13819.680225.42,56015.9
Second1,57626.540832.32,43542.01,26840.25,68735.2
Third1,41223.730424.01,49225.867721.43,88524.0
Fourth1,35622.825320.05559.63049.62,46815.3
Fifth99816.816012.71652.91053.31,4288.8
Sixth and over931.6312.580.120.11340.8
    Totals5,947100.01,264100.05,793100.03,158100.016,162100.0

It has been mentioned earlier that, except in special circumstances, children are not permitted to leave school until they reach the age of fifteen years, and it would appear that many pupils entering post-primary schools remain there only as long as they are required to, as no less than 51 per cent. do not proceed beyond the second year of attendance.

Secondary Schools for Maoris.—The Maori child has the same right to a free secondary education as the European, and where a State post-primary school is accessible he may attend it. There were also in 1948 ten denominational Maori secondary schools available to Maori children, live for girls and five for boys. In addition to catering for private pupils, these schools provide secondary education for Maori children in remote districts by means of Government scholarships provided by the Education Department. Some of them are also partly financed out of public endowments originally provided for the purpose of Maori education.

At the end of 1948, 642 Maori pupils were receiving secondary education at these schools, 269 of the total being Government scholarship-holders. In addition, there were 31 scholarship-holders enrolled in European secondary schools.

A further step forward in the provision of post-primary education for Maoris was the approval of the establishment of three Maori district high schools in the East Coast district of the North Island in 1941. Further district high schools established since then are—one in North Auckland in 1944, two in the Hay of Plenty, and one near Rotorua in 1947, and one near Gisborne in 1949. These schools, unlike the private denominational schools, are controlled by the Education Department; they provide courses of a practical nature specially suited to the needs of the Maori pupils.

War Bursaries for Soldiers' Dependants.—Regulations which came into force in January, 1918, provided for the award of bursaries to dependants of members of the New Zealand Expeditionary Forces who were killed through active military service or who were disabled through such service. In 1941, bursaries were made available to dependants of members of the Second New Zealand Expeditionary Force and of veterans of the Great War who are in receipt of pensions under the War Veterans' Allowances Act, 1935 (consolidated in the War Pensions Act, 1943). To qualify for a war bursary a child must have gained the Primary School Certificate. The bursary is tenable at any post-primary school, or, if the holder has the necessary educational qualifications, at a University college. The tenure of a war bursary may be continued until the holder reaches the age of twenty-three years.

War bursaries to the number of 1,281 were current in December, 1948, as compared with 1,247 at the end of 1947.

Secondary School Bursaries.—Under regulations dated 15th December, 1943, as amended in April, 1944, a bursary of a maximum annual value of £40 and tenable for a period of up to two years may be granted to a pupil who is obliged to live away from home in order to take a Sixth Form course at a post-primary school (public or private) which is approved for accrediting purposes. In order to qualify, an applicant must be under eighteen years of age and must have passed either the School Certificate or the University Entrance Examinations or have been accredited for the latter.

Technical School Bursaries.—Bursaries of a maximum value of £40 may be awarded to pupils who have completed at any post-primary school a two years' course preparatory to a specialized course in agriculture, art, engineering, building-construction, or home science which can be completed only at some technical school. The bursaries are tenable at technical schools approved for that purpose and may be held for a maximum of two years. Applicants must be under the age of seventeen years at the commencement of the specialized course and must be obliged to live away from home in order to receive satisfactory instruction in the courses to be followed.

VOCATIONAL GUIDANCE.—Since 1938 full responsibility for the work of vocational guidance of pupils at post-primary schools, which for some years had been carried of almost entirely by voluntary organizations, has been taken by the Government. Eight vocational guidance officers (four men and four women) were appointed, two to each of the four chief centres; and educational guidance officers, known as “careers-advisers,” were also selected at certain large post-primary schools to work in conjunction with the district vocational guidance officers. So far as the work of finding positions for children leaving school was concerned, the vocational guidance officers noted in collaboration during the war with the Man-power officers of the National Service Department, and in each of the four main cities a “Youth Centre” was established where the work of guidance and placement was undertaken jointly by officers of the Education and National Service Departments.

The Education Department assumed the full control of the youth centres in 1943, and the staffs of the centres (now called Vocational Guidance Centres) have been greatly strengthened and their activities expanded, including the provision of psychological clinics. So far, branch offices have been opened in the four main centres and in Invercargill and Wanganui, but the Vocational Guidance Officers have made contact with the post-primary schools in other centres. The Vocational Guidance Officers, acting in conjunction with headmasters and special careers teachers in the schools, offer their services at any point in the child's career where a choice has to be made, whether of school course or of vocation. When a child has made his choice of career, the Vocational Guidance Officer tries to find suitable employment for him and endeavours to follow up his progress until he is finally and satisfactorily settled in his line of work. Working in conjunction with the Education Committee of the Rehabilitation Board, the Vocational Guidance Officers assisted in the rehabilitation of returned servicemen particularly in the selection of suitable courses of study.

RURAL EDUCATION: Consolidation of Schools.—In order to give children in country districts the advantages of special equipment and more specialized teaching in larger schools, the consolidation of the smaller rural schools has been encouraged wherever practicable. The extent of this consolidation will be evident from the fact that, whereas in 1934 there were 2,548 public primary schools (including intermediate schools and departments), the number in 1947 had fallen to 1,963, with a further fall to 1,932 in 1948.

Transport and Board.—A natural consequence of consolidation is the provision of adequate transport facilities to bring children into the centres. Free passes on the railway to the nearest public or private school are granted to children living near a railway-line but out of reach of a primary school, and the same privilege is enjoyed by pupils having to travel to attend secondary schools, combined schools, district high schools, technical high schools, and private secondary schools, as well as to part-time pupils travelling to attend technical schools or classes, and pupils attending manual-training centres.

Where railway facilities are not available or sufficiently convenient, transport of pupils is by motor vehicle, horse, or ferry.

Transport by buses operated either by the Education Department or by private operators under contract with the Department is free.

Where neither a departmental nor contract bus service is available the cost of transport is met by payment of a conveyance or horseback allowance.

The expenditure on transport of pupils for the financial year 1948–49 was £615,007, as compared with £529,187 in 1947–48 and £302,942 in 1942–43.

During the last three years the expenditure on board of pupils attending schools was:—

 1946–47.1947–48.1948–49.
 £££
Public primary10,2768,3648,314
Private primary4,6984,4144,594
Public post-primary54,20248,61538,606
Maori1,3581,3502,710
Private secondary22,01124,49521,365
Totals£92,545£87,238£75,589

The next table gives particulars of the number of children transported to school and the number in receipt of boarding-allowance as at 1st July, 1948, according to the type of school attended. Totals for the two preceding years are also shown.

Type of School.Number of Pupils on Roll.Total Pupils transported to School.Number receiving Boarding-allowance.

* Estimated.

Public primary schools211,16532,494303
Intermediate schools and departments10,78468734
Secondary departments of district high schools7,9383,952190
Secondary schools19,1163,4291,361
Technical high schools13,8514,822510
Combined schools3,651711477
Maori village schools13,0263,31170
Chatham Islands schools97143
Private primary schools32,8182,052232*
Private secondary schools9,7489761,250*
    Totals, 1948322,19452,4484,430
    Totals, 1947316,89749,2744,946
    Totals, 1946302,64545,1324,787

Correspondence School.—Since 1922, correspondence classes have been conducted for the primary education of children in very remote areas and of those unable to attend school on account of lengthy illness or other causes. In 1929, courses were extended to cover secondary education up to the stage of the University Entrance Examination. The usual subjects of the syllabus of instruction are taught at the school, and in addition pupils who require instruction which is usually available in a special class in a public school are taught by teachers on the staff of the school who are trained for the purpose. A corporate school spirit is developed through craft and club activities, weekly radio lessons, and personal visits from special travelling teachers. The work of the school has been greatly facilitated by the extension of the practice of visiting pupils in their homes. Vacation schools have been organized in various centres in order to give pupils the opportunity of doing practical work and of taking part in group activities.

Young persons in employment, including teachers of small public schools, junior assistants in Maori schools, Post Office cadets, and others who are unable to attend post-primary schools for evening classes, also receive tuition as part-time pupils of the Correspondence School. One of the features of the school is the provision of instruction for pupils taking practical subjects, such as needlework, woodwork, practical agriculture, and science subjects.

At the end of 1948 there were 4,015 pupils on the roll of the Correspondence School, 1,784 being in the primary department, and 601 full-time and 1,630 part-time students in the secondary department. The teaching staff of the school consists of a headmaster, and 96 secondary, and 50 primary assistant teachers.

Technical Correspondence School.—In July, 1946, the Department took over the responsibility for the study courses previously conducted by the Army Educational and Welfare Service. A Technical Correspondence School was established in Wellington to develop these courses for men in the Armed Services, and also to provide correspondence instruction in vocational and technical subjects for apprentices and advanced students unable to attend technical schools or classes.

The number of students on the roll at 1st July, 1948, was 741, and the teaching staff at the end of the year comprised 12 full-time and 9 part-time teachers.

Agricultural Clubs.—An effort has recently been made to see that the curriculum is adapted to the social and economic background of each school, and the teaching of agriculture is made a special feature in the rural schools. Projects have been undertaken by the boys' and girls' agricultural clubs in the rearing of calves, lambs, chickens, pigs, and bees, and in the production of crops. In 1942–43 some 26,516 projects were completed; in 1943–44, 32,388; in 1944–45, 33,674; in 1945–46, 38,469; in 1946–47, 38,412; and in 1947–48, 41,736.

HEALTH SERVICES: Physical Education.—Physical education, including swimming and life-saving, is a recognized part of the primary and post-primary school curricula. In the public primary schools three half-hourly periods per week are devoted to the subject, and since 1945 in post-primary schools at least two hours a week. During the month of February public schools suspend ordinary time-tables and concentrate on development of physical welfare and outdoor activities. Corrective classes are held in the larger schools for the purpose of remedying physical defects of the children.

A Superintendent, to organize and control physical education in the schools throughout New Zealand, was appointed in 1939. Area organizers have also been appointed to develop still further the work in their respective districts, and assistants have been appointed to teach physical education in the schools to which they are attached and in neighbouring schools. In 1948 there were 74 teachers in the primary school system engaged full-time on physical education. Increasing numbers of Post-primary schools are also appointing teachers engaged in full-time instruction in physical education. Increased grants have been provided for physical education in schools.

Medical and Dental Treatment.—Information on the medical and dental inspection of school-children and the dental-clinic system is given in Section 5A of this Year-Book devoted to Public Health.

Free Issue of Milk and Apples.—The milk-in-schools scheme, for the free issue of a half-pint daily ration of milk to children, commenced on 1st March, 1937. Information concerning this scheme is also contained in Section 5A.

A similar scheme in regard to apples was inaugurated in 1941, and in some years during the apple season (approximately eight weeks) apples, free of cost, are supplied to children attending all types of schools.

CHILD WELFARE AND SPECIAL SCHOOLS.—The Child Welfare Act of 1925 provided for the creation of a special branch of the Education Department, now known as the Child Welfare Division. The Act was passed to make better provision with respect to the maintenance, care, and control of children who are specially under the protection of the State, and to provide generally for the protection and training of indigent, neglected, and delinquent children.

An important section of the Act provided for the establishment of Children's Courts, to be presided over by Stipendiary Magistrates or Justices specially authorized to exercise jurisdiction in these Courts. Provision was also made for the appointment of honorary associates of either sex, whose function it is to consider all the facts concerning children brought before the Courts and to advise the presiding Magistrate or Justice as to what action should be taken. The appointment of Child Welfare Officers for the investigation of all cases coming before the Courts was also provided for. These investigations are carried out mainly by the regular officers employed by the Department, but in outlying districts the services of about 230 honorary child welfare officers are utilized for this important work.

The principle of dealing with children in the privacy of the Magistrate's room had been followed for many years throughout New Zealand, and the Child Welfare Act was designed to give legality to such a practice. Very wide discretionary powers are given to these special Courts in dealing with children. The ordinary procedure of requiring the child to plead, of taking evidence on oath, and, indeed, of hearing the particular charge may be dispensed with altogether. Wherever practicable the Children's Court is held in premises apart from the ordinary Police Court, and no newspaper is permitted to publish either the names of children appearing before these Courts or any particulars that are likely to identify a child.

A child was originally defined for purposes of the Act as one under sixteen years of age. This age was raised to seventeen in 1927.

In order to provide for the greater protection of infants of unmarried mothers and for the assistance and guidance of the mothers themselves, there is provision for Child Welfare Officers, on being notified of such births, to investigate each case and to render such assistance as is required, either in placing the child in a suitable foster-home or in advising the mother in the matter of affiliation proceedings, or in assisting her in obtaining employment, &c. By an amending Act in 1927 provision was made for the inspection and registration of all private institutions for children.

In 1948 a further amending Act made provision for the placing of any immigrant and refugee children who may come to New Zealand under the legal guardianship of the Superintendent of Child Welfare.

In addition to the work in connection with the maintenance and education of indigent, neglected, and delinquent children committed by the Courts, the Child Welfare Division (1) supervises all infants and young children under the age of six years who are living apart from their parents; (2) makes inquiry through its field officers, for the information of Magistrates, into all applications for the adoption of children; (3) supervises all children and young persons placed under the field officers by order of the Court; and (4) controls institutions for deaf or for mentally backward children.

The following figures (which are exclusive of children dealt with as preventive cases, 1,460 in 1948–49) indicate the numbers under control during each of the last five years. In addition there were, in 1948–49, 16 children at the New Zealand Institute for the Blind, for whom the Education Department made payment.

 1944–45.1945–46.1946–47.1947–48.1948–49.
Boarded out, institutions, receiving-homes, and in hospitals, or convalescent homes, &c.4,1194,0553,8073,5383,487
Under supervision1,0631,026915879854
Infant-life protection799909788772832
Deaf children215238250251277
Mentally backward children186174172160173
Totals6,3826,4025,9325,6005,623

The Child Welfare Act authorizes Children's Courts to place children under the supervision of Child Welfare Officers in cases where it appears undesirable or unnecessary to remove them from their own homes, and generally in all cases the friendly contact with the parents as well as the children is sufficient to bring about a readjustment of the home conditions or the correction of incipient anti-social traits in the children. In this important work the Department receives valuable assistance from private social service organizations.

The number of cases dealt with by the Courts in 1948–49 was 1,883, a decrease of 1,193, or 38.8 per cent., as compared with live years earlier. Of those coming before the Courts, 619 in 1948–49 and 660 in 1947–48 were placed under supervision and dealt with as indicated in the foregoing paragraph. The number committed to the care of the Superintendent during the year was 425.

At 31st March, 1949, the number of children boarded out was 1,737, as compared with 1,747 at the end of the preceding year. The boarding-out rate is 25s. per week for children under twelve years, 27s. 6d. (including 1s. 6d. pocket-money) per week for children aged twelve to fourteen years, and 30s. (including 2s. 6d. pocket money) per week for children over fourteen years. The Department provides free dental treatment where not otherwise provided, and also school books and stationery.

Of the total number under control at 31st March, 1949, the number placed in employment was 786, of whom 268 were in farm situations, 104 in factories, 61 in shops and offices, 102 in domestic work, and of the remainder 170 were in other occupations and 81 were apprenticed to various trades. A considerable number of the foregoing were receiving some assistance—e.g., with their board, clothing, books, fees—from the Department in the early stages of their employment. Except in a comparatively few cases these State wards receive standard rates of wages, the exceptions being entirely due to some physical or mental handicap which prevents the young people concerned from competing on equal terms with their fellows.

The Boys' Training Centre at Levin provides for boys of all ages who require a period of reformative detention in an institution. There are two distinct sections—a senior section for older boys (of approximately fourteen years and upwards), which is a counterpart of the Girls' Training Centre at Burwood, and a junior section at the Hokio Training School, which caters for boys of primary school age. There is a similar institution for girls at Burwood. A Girls' Hostel in Wellington and a Boys' Hostel in Auckland provide for young people under control who are in employment in these two cities.

An institution at Otekaike provides a special course of education for mentally-backward boys. The older lads, under capable supervision, are employed in farm-work, garden and orchard work, bootmaking, and carpentering. Girls are provided for at the Special School at Richmond, and are employed in housework and laundry-work, sewing, knitting, &c., and in outside occupations, such as gardening and flower-growing. Maori girls requiring training before placement in the community are provided for at an institution at Featherston. After a period of training they are placed in suitable situations where their supervision is continued under the local Child Welfare Officer.

Infant-life protection is carried out under the supervision of trained nurses who are fully qualified in the care and feeding of infants and young children. Very many infants dealt with under this system are illegitimate.

A residential school at Sumner exists for the teaching of deaf children, and special classes are established in the main centres for the education of hard-of-hearing children and for the correction of defective speech among children. Classes are also conducted for adults. In 1942 a residential school for the deaf was opened at Titirangi, Auckland, and a number of the children from Sumner were transferred to this new school.

Provision is made for blind children and also for blind adults at the New Zealand Institute for the Blind at Auckland. This institute is administered by a board of trustees, on which the Government is represented. Certain children not admitted by private arrangement are admitted as Government pupils, the number of such pupils in residence at 31st March, 1949, being 16.

TEACHING PROFESSION: Training of Teachers.—There are five training colleges available to students who desire to enter the teaching profession, and at the end of 1948 there were 1,847 students in training. Of these, 1,787 were “Division A” students and 60 “Division C” students. The minimum academic qualification for “Division A” is the University Entrance or School Certificate Examinations, while students of “Division C” must be University graduates.

The following table shows the number of students in training at the teachers' training colleges in December of each of the years 1944–1948.

Year.Men.Women.Totals.
19444761,0971,573
19454411,0071,448
19467548491,603
19477088561,564
19487841,0631,847

With the end of hostilities, there was a substantial increase in the number of male students in 1946, but this was partially offset by a fall in the number of female students.

The normal course of training for “Division A” students is a period of two years at a training college, followed by a further period of one year as a probationary assistant attached to a public school. Third-year studentships, which entitle holders to an extra year's training, are available to selected students who wish to specialize in the teaching of certain subjects of the curriculum. There were 21 such students in December, 1948. For students of “Division C” the course is for one year. To enable students to qualify to teach homecraft subjects, bursaries providing training at a teachers' training college and at a technical high school were instituted in 1943. There were 32 homecraft trainees in the Dunedin Training College in 1948.

In 1949, 50 Post-primary Teachers' Bursaries were awarded to students who had reached a standard of education at least equivalent to University Entrance, to enable them to attend full time at University to complete approved degree courses in preparation for entry into the post-primary teaching profession. The bursaries are of an annual value of £70 plus payment of tuition fees with an additional £40 if students are obliged to live away from home to attend University. The tenure is for a maximum period of four years. On completing their University courses students may be required to attend a teachers' training college for one year as “Division C” students, and then to serve for a period of four to five years as teachers in post-primary schools.

Commencing in 1948, a maximum of twenty Physical Education Bursaries are awarded annually to students to enable them to attend the School of Physical Education at the University of Otago for a three-year diploma course in physical education. The bursaries are of the same value as the Post-primary Teachers' Bursaries, and the bursars may be required, on completion of the course, to undertake work for a period of four to five years either as teachers of physical education or as physical welfare officers under the Internal Affairs Department. The number of bursars attending University in 1948 was 20.

Public Primary-school Teachers.—The following table shows the number of teachers in public primary schools in the various education districts as at 31st December, 1948, together with totals for 1947, 1946, and 1940. This classification is not available for the intervening years.

Sole Teachers.Heads of Schools.Assistant Teachers.Probationary Assistants.Total Number of Teachers.Percentage of Male to Female Teachers.
M.F.M.F.M.F.M.F.
Education District          
Auckland14133370334471,15782832,34679.6
Taranaki34870105217962138074.3
Wanganui592476874221102649878.5
Hawke's Bay502074769211111745980.0
Wellington51311069181435472788776.7
Nelson29144213896101524594.4
Canterbury103421391422349133461,09184.0
Otago502681891245432456887.5
Southland53137134415913936598.4
Intermediate schools and departments  18 184210  41296.2
  Totals, 19485702111,047931,4033,4042552687,25182.4
  Totals, 19475672581,0201071,4223,2882023377,20180.5
  Totals, 19465762971,0001061,3593,1911753867,09078.1
  Totals, 19406443639911478862,8902274386,58671.6

The number of male teachers rose from 3,211 in 1947 to 3,275 in 1948, but the number of female teachers fell from 3,990 to 3,976. Between 1940 and 1948 the total number of teachers increased by 665, male teachers contributing 527 of this increase and female teachers 38. The average number of pupils per teacher was 27.3 in 1940, 25.5 in 1946, 27.6 in 1947, and 28.0 in 1948.

Post-primary-school Teachers.—The following table indicates the number of full-time teachers employed in the post-primary schools mentioned. The principals are included except in the case of district high schools, the figures for which apply to assistants in the secondary department only.

Year.Secondary Schools.District High Schools.Technical High Schools.Combined Schools.Grand Totals.
Males.Females.Males.Females.Males.Females.Males.Females.
194434237215214730218082621,639
194540638318717736121490641,882
194640937020414242521891651,924
194746840023614045924791712,112
194847439625713248227397692,180

Male teachers employed in post-primary schools fell from 908 in 1940 to 707 in 1942, this decrease being almost entirely due to enlistment in the Armed Forces. The position was slightly improved in 1943, and each succeeding year has shown a further advance, the number in 1948 being 1,310, an increase of 402 as compared with 1940. The number of female teachers rose from 630 in 1940 to 838 in 1945, this increase being partially due to the employment of women during the war period in positions normally occupied by men. There was a fall to 795 in 1946, but the number at the end of 1948 (870) was 240 in excess of the number employed in 1940. Teachers employed in private Post-primary schools and Maori secondary schools are not included in the figures.

Information as to teachers' superannuation will be found in the section of this book dealing with “Social Security, Pensions, Superannuation, &c.” (Section 26).

TEACHING AIDS.—In order to assist teachers to make their work more realistic, a Supervisor of Teaching Aids was appointed to the Education Department in 1941. His work includes the supervision of school broadcasts and the work of the Education Officers in the museums and also of a library of films and film strips.

Broadcasting.—Regular broadcasting programmes for schools were initiated in 1931. A varied series of talks is given weekly over the national stations at Auckland, Wellington, Christchurch, and Dunedin. A special feature is a music lesson broadcast to schools weekly. Special lessons are also broadcast for Correspondence School pupils.

Visual Aids.—The use of visual aids, particularly the film-strip projector, is increasing in the schools. Libraries of films and film-strips for free use in schools are maintained at all Education Board offices. The Visual Education Association in Auckland runs a circuit of silent films covering some fifty schools.

Museums.—To assist schools to make the fullest use of the museums, an education officer is attached jointly to the museum and the teachers' training college in each of the four main centres. Museum boxes are circulated amongst schools where pupils are unable to make regular visits to a museum.

Publications.—An illustrated monthly paper, called the School Journal, is published by the Education Department for use as the chief reader in primary schools and intermediate schools and departments, and is supplied free to all schools, both public and private.

Post-primary Bulletins are published fortnightly and issued free to all public and private post-primary schools. They provide background reading for subjects of the revised curriculum, particularly in social studies, science, literature, and music.

A monthly Gazette, mainly for the information of teachers, is published by the Department. It is a medium for the prompt dissemination of official information and for the advertisement of vacancies. Copies are distributed to educational authorities and to State schools throughout New Zealand.

As stated under an earlier heading, new text-books, which are being produced as a result of a systematic review of the primary-school curriculum, are issued free to all pupils in public and private primary schools.

HIGHER EDUCATION: New Zealand University.—Control of higher education in New Zealand is vested in the New Zealand University, founded by the New Zealand University Acts of 1870, 1874, and 1875.

The University was formerly an examining, not a teaching, body with four teaching institutions affiliated to it—the Auckland University College, founded in 1882; Victoria University College, founded in 1897 at Wellington; Canterbury University College, founded in 1873 at Christchurch; and Otago University, founded in 1869 at Dunedin. By the New Zealand University Amendment Act, 1926, the constitution of the University was altered so that it now actually consists of the four University colleges. Each of the colleges, besides providing the usual University courses, specializes in certain directions: Otago University has medical and dental schools, a school of mining and metallurgical engineering, a school of home science, and a school of physical education; Canterbury University College has a school of engineering (mechanical, electrical, and civil), and a school of art; Auckland University College has a school of architecture, and a school of engineering which offers courses to the final years of the degree only in certain branches of engineering; and Victoria University College specializes in law, has a school of public administration, and is establishing a school of social work. There are also two agricultural colleges—viz., Massey and Canterbury—attached to the University (see page 173), the work of which is co-ordinated through the New Zealand School of Agriculture.

In 1930 a New Zealand University Amendment Act was passed to enable the New Zealand University to discharge its functions under the Law Practitioners Amendment Act, 1930. For this purpose a Council of Legal Education was established to make recommendations to the Academic Board of the University with respect to any matter relating to legal education. Further, the Senate of the University in making or altering statutes concerning legal education must first consider any recommendations made by the Academic Board or the Council of Legal Education.

In 1948 there were 11,327 students actually in attendance at the four University colleges and the two agricultural colleges. Of these, 914 were graduates, 8,779 undergraduates, and 1,634 unmatriculated students. Of the unmatriculated students, 877 were taking short courses at the agricultural colleges. A considerable number of the unmatriculated students are returned servicemen, who are admitted under special terms. In addition there were 1,514 students attached to the various University colleges, but exempt from lectures. Comparable figures for the five years quoted are given in the following table.

Year.Students attending Lectures.Exempt Students.Totals.
Males.Females.Males.Females.
19444,6211,9639442027,730
19455,8512,1351,1621839,331
19469,1412,1221,01617012,449
19479,1772,1561,25118012,764
19489,0992,2281,30221212,841

Compared with the pre-war year 1939, the number of male students attending lectures in 1948 showed an increase of 5,034, or 123.8 per cent., while the number of female students increased by 923, or 73.4 per cent. The number of students exempt from lectures has also recorded substantial increases. The high figures of the last three years for male students have been contributed to by the granting of bursaries to ex-servicemen. There were approximately 3,400 holders of rehabilitation bursaries attending the universities and agricultural colleges in each of the years 1946 and 1947, and 2,600 in 1948.

Professors attached to the various University colleges in 1948 numbered 77, of whom Auckland had 16; Victoria, 16; Canterbury, 18; Otago, 22; Massey, 3; Canterbury Agricultural, 2. In addition there was a considerably larger number of full-time lecturers, part-time lecturers, and assistants.

The following table gives particulars of courses taken by students taking definite courses, during 1948 and each of the preceding two years.

Course.1946.1947.1948.
Males.FemalesTotal.Males.FemalesTotal.Males.FemalesTotal.

* Including intermediate course students.

† Excluding students taking intermediate courses.

Agriculture—         
  Degree   11511161581159
  Diploma1,47910*1,48934283502925297
  Other   48 4859665
Architecture—         
  Degree   1497156129 129
  Diploma202192217688482 82
  Other   26 2672633
Arts2,5241,3013,8252,6931,2873,9802,8501,4254,275
Commerce2,0601022,1621,872901,9621,9191052,024
Dentistry1996*20517051751976203
Divinity18 182412540444
Education: Diploma6934103772910611826144
Fine Arts: Diploma   192948194160
Engineering705 *705473 4734601461
Home Science—         
  Degree 207*207 5959 5454
  Diploma   7070 5656 
Horticulture: Diploma411960531669461763
Journalism: Diploma512374282563361753
Law566175836251764260417621
Massage: Diploma13304315395483745
Medical Science   3 32 2
Medicine79897*8954796554450753560
Mining: Diploma6216344 4455 55
Music1141342489692188118102220
Physical Education: Diploma      141630
Public Administration: Diploma   11 1114 14
Science (including Medical, &c., Intermediate)1,2742421,5162,0983722,4701,8243082,132
Other courses   3477411
    Totals10,1752,24212,4179,5492,22411,7739,5652,32711,892

Free University Education.—Free University education was instituted in 1911 for all holders of University Scholarships (gained by examination) and bursaries (since 1945, gained by accrediting). University Junior Scholarships and University National Scholarships are of the value of £80 and £70 per annum respectively plus tuition fees, and are tenable for four years. In the case of holders living away from home a further sum of £40 is allowed in each case. The number of University Junior and National Scholarships awarded each year is thirty. Taranaki Scholarships are of such annual value (not less than £70) as the Senate may determine by statute, plus tuition fees, and the Senate may, at its discretion, extend the tenure from three to four years. University National Scholarships and Taranaki Scholarships are tenable with other scholarships and bursaries not awarded by the University of New Zealand, but the total value must not exceed £165 and £110 respectively in any year. The above scholarships are awarded on the results of the Entrance Scholarships Examination. There are also some thirty or forty local and privately endowed scholarships awarded on the results of the same examination.

Scholarships awarded during the degree course are the Senior University (£90 per annum) and John Tinline Scholarship (£90 per annum). The various colleges also have private scholarships for which their own students may compete. The chief scholarships awarded at the end of the University course are the Rhodes Scholarships, the 1851 Exhibition Scholarships, the Post-graduate Scholarships in Arts, Science, Commerce, Law, Engineering, Architecture, Medicine, and Dentistry, the Macmillan Brown Agricultural Scholarship, the Shirtcliffe Scholarships, and the National Research Scholarships. All except the last-named are tenable abroad. The National Research Scholarships are each of the value of £250 per annum. Each University college may also award two Research Scholarships of an annual value of £200. The University of New Zealand awards Research Fellowships, the value of which is not fixed, but the normal grants have been approximately £300 per annum for a period of two years.

In 1940 new regulations were made for the award of Ordinary National Bursaries, the holders of which were entitled to the payment of tuition fees, for approved courses. All students who have been accredited for, or who have sat and passed, the University Entrance Examination may be awarded one of these bursaries and thus receive free tuition for a period of four years, or in the case of medical students five years, at a University college. Bursars who hold the Higher School Certificate receive, in addition, an annual cash payment of £30 if attending full time at University.

In order to assist qualified students to pursue special University courses, Special Bursaries are available in agriculture, architecture, fine arts, engineering, science, and home science. The tenure of these bursaries is five years for engineering and four years for each of the other courses. Awards are limited to approximately ninety per annum. The annual value of special bursaries is tuition fees plus a cash payment of £30, and £40 boarding-allowance if the holder is required to live away from home. In 1948 the number of special bursaries held was 52 in agriculture, 54 in engineering, 10 in architecture, 61 in science, 63 in home science (tenable at Otago University), and 24 in fine arts (tenable at Canterbury College School of Art).

Each year a maximum of 65 National Boarding Bursaries are awarded to candidates on the basis of marks gained in the University Entrance Scholarship Examination. The bursaries are awarded to candidates who have to live away from home in order to attend a University, or who, although not required to live away from home, are in need of the financial assistance afforded by the bursary. The annual value of these bursaries is tuition fees plus £70 boarding-allowance. The tenure of the bursaries is five years for medical students and four years for others. Of the bursaries awarded each year at least forty go to students who are required to live away from home in order to attend University.

The total number of Ordinary National, National Boarding, and Special Bursaries current in 1948 was 3,301, as compared with 3,060 in 1947 and 2,693 in 1946.

A scheme of bursaries for medical and dental students was inaugurated in 1943. These bursaries, which are administered by the Department of Health, are tenable for five years and are of an annual value of £70 plus £40 if the student is required to live away from home.

Bursaries are also provided by the Rehabilitation Board for ex-servicemen.

From the table given below will be seen the number of students who received free University education during each of the last five years.

Year.Junior University, University National, and Taranaki Scholarships.Senior University Scholarships.Ordinary National, National Boarding, and Special Bursaries.Training-college Studentships.Other.Totals.
194478192,0187325953,442
194591222,3996041,0804,196
1946104222,6937583,9117,488
1947115293,0607063,9467,856
1948115313,3017893,3427,578

The increase under “Other” in the above table in 1944 and subsequent years is due to a limited extent to the award of Medical and Dental Bursaries, but the main cause of the increase is the number of Rehabilitation Bursaries awarded.

School of Agriculture.—The New Zealand School of Agriculture consists of two agricultural colleges specializing in higher agricultural education—Massey Agricultural College, near Palmerston North, and Canterbury Agricultural College, near Christchurch. Until 1937 the two colleges were separately governed, though both were attached to the University of New Zealand. Under an Act of that year they were co-ordinated as the New Zealand School of Agriculture in connection with the University of New Zealand. They are now governed by one Council, but continue to specialize in their respective spheres of work as separate institutions. The staff of Massey College consisted in 1948 of 1 Principal, 2 professors, 24 lecturers, and 13 assistant lecturers, while that of Canterbury was made up of a director, an assistant director, 1 professor, 21 lecturers, and 6 assistant lecturers. The total number of students at Massey College in 1948 was 597 and at Canterbury 864. These numbers include 274 students at Massey and 603 at Canterbury Agricultural Colleges taking short courses.

Encouragement to the development of higher agricultural education is given through a Government grant to the Council, amounting to £90,774 in 1948. Various research projects at the colleges have been aided by expert assistance and grants from the Department of Scientific and Industrial Research.

In addition, special bursaries in agriculture (referred to on the previous page) are awarded to qualified candidates to provide them with practical training for positions as teachers or instructors of agriculture. During 1948, 23 bursars were in attendance at Canterbury Agricultural College, 18 at Massey College, 3 at Auckland University College, 5 at Victoria University College, and 3 at Canterbury University College.

COUNCIL FOR EDUCATIONAL RESEARCH.—In 1933 the Carnegie Corporation of New York set up a committee to report on the proposal to found in New Zealand a Council for Educational Research. This committee called a conference of representative educationists to consider the proposal, and approached educational authorities for their co-operation. In view of the unanimous support given to the proposal, the committee recommended the foundation of the Council, and in November, 1933, the Carnegie Corporation appropriated a substantial grant for the purpose, payable in five yearly instalments, beginning in 1933–34. In 1938 the Corporation extended the grant to cover a second five-year period, from 1940 to 1944.

When the Corporation grants ceased in 1944 the Government passed legislation giving statutory existence to the Council, and since 1945 has made an annual grant of £3,000 to it.

The Council has concentrated on New Zealand problems, and many of its publications consist of critical surveys on various aspects of New Zealand education and of accounts of outstanding experiments in school practice. The work done under the auspices of the Council has been carried out not only by its own permanent staff but also by part-time investigators.

In addition to its activities as a research organization, the Council administers the finances of the Carnegie Museums Trust Fund and acts as a clearing-house for information on educational matters.

The Council's activities are under the control of a permanent officer (the Director), who is assisted by a staff of three. There are local Institutes for Educational Research in Auckland, Wellington, Christchurch, and Dunedin.

ADULT EDUCATION: National Council of Adult Education.—In 1938 an Education Amendment Act provided for the establishment of a Council of Adult Education to co-ordinate activities of adult education, to make recommendations to the Minister of Education concerning the amount and distribution of the annual grant, and to receive reports from the bodies to whom grants were made.

The Adult Education Act, 1947, which followed largely the recommendations of a Consultative Committee reporting in the same year, abolished the Council and set up a National Council of Adult Education with much wider powers. The functions of the National Council are—

  1. To promote and foster adult education and the cultivation of the arts; and

  2. To make recommendations to the Minister of Education as to the amount of the annual grant to be made to the National Council for Adult Education out of moneys appropriated by Parliament for the purpose, and to receive, administer, and control the expenditure of such moneys granted.

The National Council has power to appoint staff and to impose conditions on grants made by it. The full-time executive officer of the Council, the National Secretary of Adult Education, is located in Wellington. The National Council is constituted as follows:—

  • The Director of Education (or his representative):

  • The Director of Broadcasting (or his representative):

  • The Director of the National Library Service (or his representative):

  • One member appointed by the Senate of the University of New Zealand:

  • Two members appointed by each of the four University Colleges (eight members in all):

  • One member appointed by the Dominion Council of the Workers' Educational Association:

  • One member appointed by the Minister of Education to represent the Maori race:

  • Up to two members appointed by the Council itself.

Regional Councils of Adult Education.—Staff for field-work in adult education is employed by the Councils of the four constituent colleges of the University of New Zealand. Each. College Council has the advice of a Regional Council of Adult Education, to which certain of the powers of the College Council are delegated. The four Regional Councils are differently constituted, but the 1947 Act requires that at least one-half of the members shall be persons appointed on the nomination of voluntary associations or organizations engaged or interested in adult education in the district. The teaching staff who work under the direction of the Regional Councils consists of a director, “general purpose” tutors, and specialist tutors. The work supervised by the Regional Councils covers a wide range of interests—lecture courses, discussion courses, and various forms of assistance to specially organized groups or groups formed originally for other purposes, in both town and country. An important recent development has been the establishment of the Community Arts Service, which arranges for visits of exhibitions, musicians, and drama and ballet groups to country centres. The Regional Councils also organize short term summer and winter schools in town and country.

Workers' Educational Association.—The Workers' Educational Association is the principal voluntary agency in New Zealand formed specifically for the promotion of adult education. It operates in conjunction with the University colleges, and on the administrative side consists of two parts—the District Council and the Tutorial Classes Committee. The former consists of representatives of affiliated bodies (such as trade unions) and members of classes, and seeks to promote interest in adult education and to organize classes. The latter is composed of equal representation from the District Council and the University colleges, and is responsible for the maintenance of academic standards and the appointment of tutors in classes specifically organized by the Workers' Educational Association.

The work of the Workers' Educational Association is carried on in the cities by means of tutorial classes, mostly one-year classes, covering a wide variety of non-vocational subjects. The usual practice is for the lecture to last an hour, followed by class discussion for an hour. Much of the country work formerly conducted by the Workers' Educational Association is now organized in the name of the Regional Councils of Adult Education, but there are still some Workers' Educational Association country groups.

The Workers' Educational Association is financed by grants from the National Council of Adult Education, University grants, and donations from local authorities, trade-unions, and private individuals.

Community Centres.—In 1938 an experimental Community Centre was established at Feilding under the supervision of two experienced educationists specially appointed to the staff of the Feilding Agricultural High School. Classes have been conducted in drama, child-care, literature, art appreciation, and physical welfare, both at the centre and in outlying areas. In 1944 a community centre was opened in a suburb of Christ church. More recently experimental centres have been opened in Dargaville, Westport, and the coal-mining districts of the Buller. All these receive some assistance, directly or indirectly, from public funds. There are, however, many other community centre schemes supported by voluntary effort.

The Adult Education Act, 1947, gives the Minister of Education power to establish or recognize community centres and to make grants to them.

NATIONAL LIBRARY SERVICE.—The establishment of a National Library Service was announced in October, 1945, by the Minister of Education, the decision following a recommendation from the New Zealand Library Association. The National Library Service has been developed in three divisions: Country Library Service, National Library Centre, and Library School.

Country Library Service.—The Country Library Service, which was founded in 1938 under the control of the Minister of Education, will be extended by the establishment of Regional Depots so that closer contact may be maintained with libraries participating in it. The first Regional Centre, that at Palmerston North, was opened in December, 1948. At present the Country Library Service assists library authorities in country districts and towns with a population of less than 15,000 to give better service. Public libraries in places with over 15,000 of population, excluding the four main centres, may receive assistance under certain conditions. Free loads of books are granted to libraries controlled by local authorities provided that such libraries give a free service locally and are maintained at a reasonable standard of efficiency. Subscription libraries in country districts—i.e., outside the area of boroughs and town districts—may hire books from the Service for an annual payment of £3 per 50 books. Both free and subscription libraries exchange their books from a travelling hook-van, which calls at each library three times a year. Fiction and non-fiction books are supplied from the van. The more serious type of non-fiction book is available to local libraries by mail from the headquarters or district offices.

Hampers of books for general reading are sent to isolated groups of readers from Country Library Service headquarters. Individuals living in such sparsely populated areas that they cannot even form a group may receive a postal service from headquarters.

Assistance is being offered to certain free public libraries which undertake library service for patients in hospitals in their centres. The libraries are supplied with books from a collection selected for hospital patients.

A library service is given to lighthouses from Country Library Service Headquarters, and a service for Ministry of Works, State Hydro-electric, and New Zealand Forest Service camps was commenced in 1949.

Tuberculosis patients in sanatoria are served from a special collection chosen to meet their particular needs. Mental hospitals receive collections of books which are exchanged regularly.

Prisons and Borstal institutions are supplied with books which are exchanged on the four-monthly visits of the travelling book-vans.

Particulars of libraries, &c., obtaining books from the Country Library Service on 31st December, 1949, were as follows: free libraries, 91; subscription libraries, 691; groups, 41; readers receiving individual service, 935, and lighthouses, 27; Ministry of Works, State Hydro-electric, and Forest Service camps, 40; Tuberculosis sanatoria, 5; mental hospitals, 8; hospitals, 11; prisons and borstal institutions, 13.

The launching of the School Library Service, operating upon a circulating basis, has been a most important development. This Service, which is financed by the Education Department and administered by the Country Library Service, aims at giving primary-school children access to the best of children's modern literature. At 31st March, 1950, the School Library Service was circulating loans of children's books to 2,016 schools, representing 149,058 children. These schools are primary, intermediate, and district high schools, public and private, outside the four main cities, and include the Education Department's Correspondence School. The public libraries of the main cities receive bulk loans from the Service for circulation among the schools in their areas.

A service by which all schools, including post-primary schools, may receive additional loans of books on request, is also available. Some 28,549 such requests were fulfilled during the year ended 31st March, 1950.

National Library Centre.—The National Centre is responsible for various bibliographical projects, such as the maintenance of the Union Catalogue, the Union List of Serials and the Index to New Zealand Periodicals, and the development of a National Bibliography. Bibliographies and indexes on special subjects are furnished when required. The Centre's other main functions, developed in conjunction with the Book Resources Committee of the New Zealand Library Association, are concerned with problems of inter-library loan, and book and periodical coverage. The latter project is designed to guarantee that there will be available in the country at least one copy of all books of any consequence published in the English language and to maintain a continuous survey of holdings of books published in the past.

Library School.—The Library School was established in 1946, and at the end of 1949 one hundred students had taken the course.

The school offers professional training to those holding University degrees or with equivalent education, and the course lasts from February to November.

Students receive allowances equal to those paid to students of Teachers' Training Colleges.

Short courses for Librarians of smaller libraries were held in 1947, 1948, and 1950. A short course for Librarians of Government Departments was held in 1949, and in the same year, the Library School collaborated in holding a short course for teacher-librarians.

Chapter 7. SECTION 7—JUSTICE

Table of Contents

CIVIL CASES.—The law relating to Magistrates' Courts and to the jurisdiction of Magistrates in civil proceedings was consolidated and amended by the Magistrates' Courts Act, 1947. Under the new legislation the monetary limitation for claims determined in the ordinary civil jurisdiction of the Court was raised to £500 (previously £300), or, where the parties agree in writing that the Court shall have jurisdiction, claims involving any amount may be decided. The Act of 1947 also empowered the Court to grant equitable remedies, which formerly it could not grant.

The numbers of plaints entered and of cases tried, and the amounts sued for and for which judgment was recorded, in the lower Courts during the last eleven years are shown in the following table.

Year.Plaints entered.Cases tried.
Number.Total Amount sued for.Number.Total Amount claimed.Total Amount for which Judgment entered.
  £ ££
193967,298894,86642,577555,503456,627
194061,828781,29439,953507,710421,302
194149,000687,77732,913427,536362,538
194232,484495,03821,582306,926253,296
194322,337353,73615,027215,764175,315
194420,800395,94614,016228,428181,262
194520,184412,32712,890277,579193,785
194624,407544,08414,507311,505241,523
194728,332694,87316,724422,046345,472
194834,927911,32120,218546,026437,240
194934,403994,29117,694550,362463,995

The numbers of actions commenced, cases tried, and judgments entered, together with the total amount for which judgments were recorded, in the Supreme Court of New Zealand in its civil jurisdiction during the eleven years ended in 1948 were as follows:—

Year.Number of Actions commenced.Cases tried.Judgments recorded.
With Jury.Without Jury.Number.Amount.
     £
1938775138127245137,916
1939999130282312153,667
194082596205201112,534
19417516520219882,344
19425986517619277,634
19435555118215848,400
19447137719916665,067
194577986209159116,739
194688970255231109,252
19471,05584225197110,595
19481,342104301299136,857

INQUESTS.—The following is a table of inquests held over the eleven years 1938–48.

Year.Males.Females.Totals.Maoris (included in Totals).
19381,4306052,035156
19391,1584931,651125
19401,1575071,664122
19411,2925301,822145
19421,1835161,699126
19431,0463861,432121
19441,0103791,389131
19459754161,391138
19461,0714011,472154
19471,1153671,482136
19481,0854271,512112

For the same period inquests are classified hereunder according to the type of verdict returned.

Year.Disease and Natural Causes.Accident.Homicide.Suicide.Violent Deaths, Nature Unknown.
M.F.M.F.M.F.M.F.M.F.
19385894136461345315847328
193951030747812753129423614
19405643594651025384283915
194161739854885449836257
194246433156112119611257271
1943350176566165969336283
194439618445813379108424111
19453902334141031610112514319
19464362204821157597444917
194748618349813256103292317
194842419749316534125444017

The most arresting feature of the statistics of suicide is the fact that the incidence among males is from two to three times greater than among females. Also of interest is the lower rate during the war, which confirms the experience of other belligerent countries.

Fire Inquests.—In case of fire causing the destruction of any building, ship, or merchandise, or any stack of grain, pulse, or hay, or any growing crop, a Coroner may hold an inquiry into the cause of such fire, the procedure being similar to that of inquests into causes of death. During the five years 1944–48, only one such inquest was held, the verdict being “cause accidental.”

POLICE FORCE.—The Police Force in New Zealand is a national body maintained wholly by the General Government. As at present constituted, it was established under the provisions of the Police Force Act, 1886, which came into operation on 1st September of that year. Prior to that date police duty in New Zealand had been carried out by members of the Armed Constabulary, which was then disbanded, Borne of its members being transferred to the newly constituted Police Force and others to the Permanent Militia. The Police Force Act, 1886, consolidated in 1908, was revised and brought up to date by the Police Force Act, 1913, and minor amendments were enacted in 1919, 1924, 1938, and 1941. In 1947 an Act to consolidate and amend the law relating to the establishment and regulation of the Force was passed, and the Police Force Act, 1947, is the statute under which the Force now functions.

Organization and Duties.—The Commissioner of Police, with headquarters at Wellington, has, subject to the directions of the Minister in Charge of the Police Department, the general superintendence and control of the Police Force. New Zealand is divided into fifteen districts, each under the charge of a Superintendent or Inspector of Police, who is responsible to the Commissioner for the maintenance of good order and the proper execution of police duty therein. Districts are divided into sub-districts under the charge of sergeants or constables, and cities and towns where regular beat duty is performed are divided into beats, patrolled by constables under the supervision of sergeants.

The principal duty of the Police Force as defined by the Police Force Act is “the preservation of peace and order, the prevention of crime, and the apprehension of offenders against the peace.” In addition to the enforcement of the criminal law and the provisions of the Police Offences Act, there are several statutes of a regulatory nature which the police are called upon to administer, wholly or partly, such as the Arms Act, Licensing Act, Gaming Act, Dangerous Drugs Act, Transport Act, Pawnbrokers Act, Second-hand Dealers Act, &c. They also undertake inquiries and other duties on behalf of other Departments of the Government Service, principally the Social Security Department, Registrar-General's Office, Internal Affairs Department, and Education Department (Child Welfare Branch).

Police in country districts in many cases hold such additional appointments as Clerks and Bailiffs of Magistrates' Courts, Inspectors of Factories, Probation Officers, Inspectors of Sea-fishing, Kauri-gum Rangers, and Sub-enumerators of Agricultural and Pastoral Statistics.

Recruiting.—In general, recruits for the Police Force must be between the ages of twenty-one and thirty years, be not less than 5 ft. 9 in. in height, and have a normal chest measurement of not less than 38 in. There is provision, however, to accept suitable recruits from the age of nineteen years, and men with previous police experience up to forty years of age may also be admitted to the Force. Recruits must be the holders of a certificate of school attainment for Form I, or possess educational qualifications of an equal or higher standard. They must be of good moral character, smart, active, intelligent, and free from bodily complaint or infirmity. The selection of recruits is made by the Commissioner after exhaustive inquiries have been made into the character, antecedents, and qualifications of the applicants. Before appointment they undergo a course of training in the Training Depot, in which they are drilled and receive instruction in the duties they will be called upon to perform.

Appointments to vacancies in the higher ranks of the Force are made from those members of the next lower rank who have qualified by examination, efficiency, and seniority for such promotion.

Members who show an aptitude for detective duty are detailed for service in the Detective Branch, which is attached to each district headquarters and undertakes the investigation and detection of the more serious crimes.

Strength of Force.—In addition to the Commissioner, the strength of the Police Force on 31st March, 1950, was 1,538, a decrease of 3 during the year. The total was made up as follows: 9 superintendents, 15 inspectors, 11 sub-inspectors, 58 senior sergeants, 162 sergeants, 1,044 constables, 133 temporary constables, 19 senior detectives, 40 detective-sergeants, and 47 detectives. There were also 14 police surgeons, 37 policewomen, 7 matrons, and 1 district constable.

The following table shows the strength of the Police Force during the last eleven years.

As at 31st March,Officers.Non-commissioned Officers.Detectives.Constables.Totals.*Police to Population (Including Maoris).Cost per Head of Population.

* Not including surgeons, police-women, matrons, &c.

       s.d.
194027149901,1911,4571 to 1,1267
194128155971,2291,5091 to 1,084711¼
1942291591051,3061,5991 to 1,022834¼
1943291751121,3241,6401 to 998810½
1944311731161,3141,6341 to 1,0069
1945371681101,2501,5651 to 1,0649
1946341741031,1641,4751 to 1,159910½
194738208971,1541,4971 to 1,18410
194836212941,1781,5201 to 1,19210
1949352241031,1791,5411 to 1,20211
1950352201061,1771,5381 to 1,22912

The next table shows the proportion of police to population and the cost of police per head of population at the latest available date in New Zealand and the various Australian States.

Place.Number of Police.Mean Population.Proportion of Police to PopulationCost of Police Per Inhabitant.
    £s.d.
New Zealand1,5381,891,3071 to 1,229012
Victoria2,6612,164,3311 to 813019
New South Wales4,2623,175,9361 to 74501710¾
Queensland1,8661,160,3001 to 62217
South Australia935687,8731 to 73610
Western Australia725544,8151 to 7511110½
Tasmania339268,5151 to 792017

Women Police.—By the Statutes Amendment Act, 1938, provision was made for the appointment of women police, it being enacted that the terms of the Police Force Act, shall apply to women appointees. The Police. Force Act, 1947, which repealed the relevant section of the earlier legislation mentioned above, provided that the term Police Force was to include all members of either sex appointed under the Act. The first 10 appointees completed their training and commenced duty in October, 1941. The present strength is 37, all of whom are stationed in Auckland, Wellington, Christ-church, or Dunedin. These women police are attached to the detective staffs and do not wear uniform. Their duties consist mainly of investigating complaints in respect of women and children, and their work is confined largely to their own sex.

CRIMINAL CASES IN MAGISTRATES' COURTS.—Maoris are included in the statistics relating to Magistrates' Courts, as well as in those for Supreme Courts and for prisons. Separate figures relating to offences by Maoris are given towards the end of this section. Children's Court cases are excluded, however, and will be found under the later heading “Juvenile Offenders.”

The following table shows the number of criminal charges dealt with in Magistrates' Courts during each of the last eleven years available.

Year.Number.Per 1,000 of Mean Population.
Against Males.Against Females.Totals.Against Males.Against Females.Totals.
193854,6583,00057,65867.003.7935.88
193957,3213,00860,32969.333.7537.05
194050,6602,56053,22061.573.1432.50
194143,8142,47846,29254.453.0028.38
194235,3532,71438,0.6744.103.2423.22
194334,2472,92137,16843.413.4522.72
194436,8803,16840,04846.163.7024.19
194539,5522,92242,47447.833.3725.06
194644,8632,69947,56251.003.0627.00
194746,3372,42548,76251.342.6927.05
194850,0062,75652,76254.183.0028.65

The next table gives the number of convictions in Magistrates' Courts, classified according to some of the more common offences or groups of offences for each of the years 1938–41, 1947, and 1948. The figures refer to total charges, with the corresponding number of distinct cases given following the totals for each year. Owing to shortage of staff, &c., it was found impossible to continue the collection and compilation of detailed figures for the five years 1942–46.

The more serious cases—such as those of a sexual nature or those involving grave bodily injury—are not tried summarily, but are sent forward to the Supreme Court for trial or sentence, and consequently do not appear in this table.

Type of Offence.1938.1939.1940.1941.1947.1948.

* Counting only the principal offence in cases where a person is charged simultaneously with two or more offences.

Common assault573630631535588558
Other offences against the person607366576652
Theft2,5872,8783,2313,0612,7222,664
Wilful damage445534514642414404
Other offences against property (including forgery)1,3521,2401,3941,1791,1651,061
Drunkenness (including drunk in charge, &c.)5,7466,4415,9225,1002,7633,314
Application for prohibition order1,3031,2209821,041702771
Offensive conduct or language, obstruction, &c., of police, and vagrancy1,7061,7542,8642,4342,8442,707
Minor traffic offences23,20624,65218,50413,27419,12220,582
Other offences against good order1,3621,4921,3111,2951,1801,200
Breach of probation125159132148136160
Unlawfully on licensed premises and other breaches of licensing Act3,3584,1773,8633,2002,6472,912
Failing to furnish return and making false return of land and income5305599212293
Failing to pay maintenance1,6231,6391,3511,4451,3491,483
Deserting merchant ships10415094103575618
Breaches of price control orders  6120282649
Other offences6,0965,2195,1356,0034,2234,691
    Totals49,65152,28846,11039,63640,99044,119
    Distinct cases*41,57344,20838,27832,41934,60036,858

The figure for total convictions (44,119) for 1948 represents a rate of 23.96 per 1,000 mean population.

The rise of 3,129 in the number of convictions in 1948 was occasioned mainly by the following increases: minor traffic offences, 1,460; drunkenness, 551; unlawfully on licensed premises, &c., 265; application for prohibition order, 69; failure to pay maintenance, 134; failing to make return or making false return of land and income, 84; breach of price control orders, 367. On the other hand offences against the person and offences against property recorded decreases.

The subject of traffic offences—which accounted for almost half of the total convictions in 1948—is dealt with in greater detail toward the end of this section.

A table showing result of hearing and punishments inflicted on summary conviction for all cases during 1948 is now given.

Result of Hearing.Offences against the Person.Offences against Property.*Offences against Good Order.Other Offences.Totals.

* Including forgery and uttering.

Dismissed or withdrawn2626591,4943,6166,031
Admonished and discharged248519
Committed for trial19976425571,045
Committed for sentence1691,3493271,548
Released under Offenders Probation Act358911151351,176
Convicted and discharged579481,0274602,492
Convicted and ordered to come up for sentence532049955411
Committed to Borstal Institution, Salvation Army Home, &c.1963018145
Fined35294826,1497,28234,731
Imprisonment in lieu of fine422234291
Peremptory imprisonment1061,0163387522,212
Bound over2 12 14
Order made 47812,0622,847
      Totals1,2426,90530,10414,51152,762
      Distinct eases9793,35526,17211,21941,725

The 41,725 distinct cases were dealt with as follows: dismissed or withdrawn, 3,997; committed for trial or sentence, 855; released on probation, 853; convicted and discharged, 1,087; fined, 30,178; imprisoned, 1,808; otherwise, 2,947.

CRIMINAL CASES IN SUPREME COURT.—Criminal cases in the Supreme Court are of two classes—viz., those in which the accused person has pleaded guilty in the lower Court and has been committed to the Supreme Court for sentence, and those actually tried in the Supreme Court.

The following table gives a summary of criminal cases dealt with in the Supreme Court during each of the last five years. As previously mentioned, Maoris are included. Frequently a series of charges is preferred against the one offender, and this serves to explain the distinction between total cases and distinct persons.

Year.Tried in Supreme Court.Sentences in Case of Committal for Sentence.Total Sentences.
Indictments and Informations.Convictions.
M.F.M.F.M.F.M.F.Totals.
(a) Total Cases
19448444340291,02461,426151,441
19457571240271,445311,847381,885
19469601445441,204511,658551,713
19478292738871,529241,917311,948
19481,34630706141,549542,255682,323
(b) Distinct Persons
1944295192006348654812560
1945247916554331659821619
1946316919944322063124655
19473091718765301771723740
19483441522574612468631717

Of the 359 distinct persons indicted during 1948, 232 were convicted and 112 acquitted; Of the remainder, no bill was returned or the prosecution was otherwise not proceeded with in 6 cases, 1 person was found insane, and 8 were awaiting trial at the end of the year.

The next table summarizes the offences of persons convicted and sentenced in the Supreme Court during each of the last five years.

Year.Total Convictions and Sentences.Distinct Persons convicted and sentenced.
Offences against the Person.Offences against Property.Forgery and Offences against the Currency.Other OffencesTotals.Other Offences the Person.Offences against Property.Forgery and Offences against the Currency.Other OffencesTotals.
19442851,04638721,4411723381634560
19453011,46869471,8851943891719619
19462921,277109351,7132064072517655
19473931,42976501,9482544481424740
19483191,692239732,3232004751626717

The table which follows shows the number of distinct persons sentenced in Supreme Courts during each of the years 1938–48, classified according to the principal types of offence.

Type of Offence.1938.1939.1940.1941.1942.1943.1944.1945.1946.1947.1948.
Murder211122 4336
Attempted murder1 1 1 3 21 
Manslaughter63  3235231
Traffic offences involving death or injury3434443167917243722
Assaults and wounding3027301837192121293029
Sexual offences102132129134126106113122124149119
Other offences against the person111382024242325222723
Robbery, burglary, and breaking and entering152198192170137153200231263229234
Theft, receiving, and fraud10593738664130125140135214232
Other offences against property10231219581318999
Forgery and uttering2234242622251617251416
Other offences1313333530183419172426
        Totals488571547542457494560619655740717
Per 10,000 mean population3.043.513.343.322.793.023.383.653.724.113.89

Since 1943 there has been a fairly marked increase in the incidence of serious crime, an experience not by any means confined to New Zealand. A similar trend is reported from many other countries, and may be regarded in part at least as an aftermath of war conditions.

Apart from the increase in the number of Maoris arraigned and sentenced on serious charges, the influx of certain undesirable elements, principally through ship desertion, has been a minor but not negligible factor.

During 1948 the number of distinct offenders sentenced in the Supreme Court was 717, of whom Maoris numbered 127. Of the remaining cases, 482 (including 20 females) were born in New Zealand, 41 in England or Wales, 18 in Scotland, 10 in Eire, 24 in Australia, and 15 in other countries.

Sentences imposed in the Supreme Court during 1948 were as follows: Released under the Offenders Probation Act, 152; ordered to come up for sentence, 13; fined, 33; imprisonment, 286; reformative detention, 197; detention in Borstal institution, 31. Twenty-four of those sentenced to imprisonment received, in addition, a term of reformative detention, and eight were declared habitual criminals during the year. Five persons were convicted and discharged.

Of the offenders, 63 were under twenty years of age, 208 between twenty and twenty-five, 141 between twenty-five and thirty, 150 between thirty and forty, 99 between forty and fifty, 34 between fifty and sixty, 21 were sixty years or over, and in one case the age was not stated.

By the Crimes Amendment Act, 1941, the death sentence for murder was abolished, life imprisonment with hard labour being substituted therefor. This amendment was an affirmation of governmental policy, all death sentences from 1936 onwards having been commuted to imprisonment for life. The same enactment also removed flogging and whipping from the list of sentences that may be imposed. The Capital Punishment Act, 1950, however, restored the death sentence for murder, exceptions being made in the case of expectant mothers and persons under eighteen years of age. The sentence in such cases is imprisonment for life and detention during His Majesty's pleasure respectively.

COURT OF APPEAL.—Under the provisions of the Judicature Amendment Act. 1913, the Court of Appeal consists of two divisions, called the First Division and the Second Division, one division of which may consist of six Judges of the Supreme Court, and the other of five Judges of the Supreme Court, who are appointed as members of either division by the Governor-General in Council on the recommendation of three Judges of the Supreme Court, including the Chief Justice. The same division does not exercise the jurisdiction of the Court of Appeal at two successive sittings, but exercises its jurisdiction separately, except that in cases of importance involving special difficulty the Chief Justice and one other Judge may recommend, for the approval of the Governor-General in Council, that a joint sitting of both divisions be held. The Chief Justice or, in his absence, the senior Judge, presides. The decision of the Court must be in accordance with the majority of the Judges present but, if the Judges present are equally divided in opinion, the judgment, &c., appealed from is deemed to be affirmed.

Under an amendment of 1933, special sittings of the Court of Appeal may be held at times and places appointed by Order in Council. This authority may be exercised only on a certificate of not less than three Judges (of whom the Chief Justice shall be one) that it is not expedient to delay hearing the appeal or other proceeding. For a special sitting any three or more Judges may exercise the jurisdiction of the Court.

In addition to the ordinary appeals from the Supreme Court, certain other proceedings arising in inferior Courts may, on an order of the Supreme Court, be removed into the Court of Appeal for argument. All decisions of the Court of Appeal are final unless leave is granted to appeal to His Majesty in Council (i.e., the Privy Council).

The law relating to appeals in criminal cases was amended by the Criminal Appeal Act, 1945, which repealed certain sections of the Crimes Act, 1908, and the Crimes Amendment Act, 1920. The Act provides that any person convicted on indictment (or committed for sentence) may appeal to the Court (a) against his conviction on any ground involving a question of law; (b) with the leave of the Court of Appeal or on the certificate of the Judge who tried the ease on any ground involving a question of fact (or on any other ground deemed sufficient by the Court); (c) with the leave of the Court of Appeal, against the sentence passed, unless such sentence is fixed by law.

The new Act does not affect the Crown's prerogative of mercy, but contains a provision enabling the Governor-General to refer any application for the exercise of the prerogative to the Court of Appeal.

During the five years 1944 to 1948, 8 Crown criminal cases were brought before the Appeal Court. In 5 instances convictions were affirmed, and in 3 cases the conviction was quashed. There were 96 civil appeals, of which 51 were allowed, and also 23 cases removed to the Appeal Court, resulting in 14 judgments for plaintiffs and 9 for defendants.

Particulars concerning applications during the last five years (1944 to 1948) appealing against sentences under the appropriate sections of the existing Acts were: Applications filed, 514; sentence varied, 105; appeal dismissed, 409.

PRISONS AND PRISONERS.—There are fourteen prisons and State reformatories and three Borstal institutions in New Zealand, as well as 21 minor prisons and police-gaols. In addition to these there are the police-stations which, under section 17 of the Statute Law Amendment Act, 1917, may be deemed to be prisons for any period (which must not exceed seven days) during which prisoners are detained there undergoing sentence.

A summary of receptions and discharges during the years 1948 and 1949 is given below.

Males.Females.Totals
1948.1949.1948.1949.1948.1949.
In confinement at 1st January1,09499643291,1371,025
Received during the year4,1263,7071481464,2743,853
Discharged during the year:—      
Transferred to other prisons or to the police1,5271,39370671,5971,460
On expiration of sentence1,5421,15438421,5801,196
Released on bail11714163123144
Released on recommendation of Prisons Board5255033419559522
Released on special remission36340511364406
Debtors61596106769
Mental defectives2022432425
Other6964327266
In confinement at 31st December99696229281,025990
Daily average number in confinement during year1,06999236311,1051,023

The following table shows the number of persons in prison on 31st December of each of the last eleven years.

At 31st December,Persons in Gaol.Proportion per 10,000 of Population.
Undergoing Sentence.On Remand and awaiting Trial, &c.Total.Undergoing Sentence.Total in Confinement.
1939895399345.455.69
1940863328955.285.48
1941988271,0156.066.22
19421,034301,0646.316.49
19431,024531,0776.266.58
1944945489935.716.00
1945998421,0405.776.02
1946992401,0325.565.78
19471,088491,1375.976.24
1948986391,0255.305.51
1949940509904.945.26

In the following table persons in confinement at the end of each of the last five years are classified according to nature of sentence.

Year.Hard Labour or Simple Imprisonment.Habitual Criminals.Detained for Reformative Purposes.Detained in Borstal Institution.On Remand, awaiting Trial, &c.Totals.
Under Three Months.Three Months and under One Year.One Year and over.

* Includes 37 military defaulters undergoing detention for duration of war.

† Includes two debtors.

‡ Includes one debtor.

194574148337*45182210421,040
19469314026547240207401,032
194710217829348296171491,137
19486616528849281136391,025
1949721062715230413549990

There were 4,274 receptions during 1948, and 3,853 in 1949, counting each person once every time received, whether by the same prison or otherwise.

These figures are made up as follows:—1948.1949.
Debtors and mental defectives7680
Transfers between institutions1,139969
Acquitted, lined, placed on probation, &c619723
Multiple receptions of the same prisoner269283
Distinct prisoners received under sentence2,1811,788
        Totals4,2843,843
Allowance for difference between number held on remand at beginning and end of year—1010
        Totals4,2743,853

Of the, different classes of receptions into prison shown above, the important figure is that of distinct prisoners received under sentence—i.e., counting each sentenced prisoner once only during the year, irrespective of the number of separate terms served. Of the 1,788 distinct prisoners received during 1949, 56 were females. Corresponding figures for 1948 were 2,181 distinct prisoners and 57 females.

An analysis of the distinct receptions according to nature of sentence for 1948 discloses that 1,826 prisoners were sentenced to hard labour or simple imprisonment, 204 to reformative detention, 105 to Borstal detention, 1 to hard labour and detention in Borstal institution, 37 to hard labour and reformative detention, 7 were declared habitual criminals and sentenced to hard labour, and 1 declared an habitual criminal and sentenced to hard labour and reformative detention.

Six prisoners (4 males and 2 females), included in the foregoing, were received under a life sentence of imprisonment.

The number of distinct persons received into prison under sentence of imprisonment during the last eleven years, with the proportion per 10,000 of mean population, is given in the next table. Debtors and insane persons received into gaol are excluded.

Year.Number.Per 10,000 of Menu Population.
19392,50515.38
19402,20113.44
19412,36914.53
19423,02918.48
19432,48215.17
19442,09912.68
19452,06512.21
19462,21312.56
19472,35113.04
19482,18111.84
19491,7889.51

The exceptionally large increase in the number of persons sent to prison during the year 1942 was accounted for by the committal or transfer of over 500 military defaulters to prison, and approximately 400 persons involved in industrial disputes. None of the latter group actually served sentence, a remission being granted immediately after reception. The increase in receptions during 1946 and 1947 was entirely due to sentences imposed on ship-deserters; in fact, but for the prevalence of this offence a substantial decrease would have been recorded.

Ages and offences of distinct persons received into prison under sentence during 1948 are summarized in the next table.

Age, in Years.Offences against the Person.Burglary, Theft, and Fraud.Conversion, Wilful Damage, &c.Vagrancy, and Drunkenness.Other Offences.Theft.
Sexual Offences.Assaults.Other.
Under 2089 8612372190
20 and under 2563472146230275628
25 and under 30152011842518165428
30 and under 40241681861030171445
40 and under 50209898248102287
50 and under 6095 47 3729127
60 and over341181311775
Not stated      11
      Totals8597258331121978322,181
Maoris (included above)12281174332970347

The final table of this category supplies statistics of ages and length of sentences of distinct persons received into prison under sentence during 1948.

Age, in Years.Length of Sentence.
Under 1 Month.1 Month and under 3 Months.3 Months and under 12 Months.1 Year and under 3 Years.3 Years and under 5 Years.Over 5 Years.Indefinite or not Stated.Totals.
Under 2122103211241243289
21 and under 258124710282152 529
25 and under 30711649981103 428
30 and under 408314612373128 445
40 and under 507391684366 287
50 and under 604136311531 127
60 and over24182481  75
Not stated 1     1
    Totals395806468426592432,181

Of the total of distinct prisoners received into prison during 1948 no less than 58.4 per cent. had been convicted for an offence on at least one previous occasion, while 26.7 per cent. had been convicted more than six times.

BORSTAL INSTITUTIONS.—Included among the 1,025 prisoners undergoing sentence at the 31st December, 1948, were 136 persons (126 males, 10 females) detained in Borstal institutions under the provisions of the Prevention of Crime (Borstal Institutions Establishment) Act, 1924. This Act, which is an adaptation of Part I of the Prevention of Crime Act, 1908 (Imperial), as amended by the Criminal Justice Administration Act, 1914, is designed to prevent crime, and provides for the detention of young offenders in a special class of reformative institution. An offender between the, ages of fifteen and twenty-one years (twenty-three in certain cases), who would otherwise be liable to sentence of imprisonment by the Supreme Court or sentence of imprisonment of not loss than one month by a Magistrate, may be made the subject of an order of detention of from two to five years by a Judge of the Supreme Court, and from one to three years by a Magistrate, without a conviction being recorded in the latter case. Inmates (if not over twenty-five years of age) may be transferred from prisons, reformatory homes, State reformatory institutions, and institutions under the Child Welfare Act, 1925, to Borstal institutions, and from Borstal institutions to prisons. The Minister of Justice has power to release an offender undergoing detention on condition that he is placed under the supervision or authority of a probation officer, or of a society or person (to be specified) who may be willing to take charge of the case.

PRISONS BOARD.—For the purposes of the Crimes Amendment Act of 1910 there is constituted a Prisons Board, the members of which are appointed by the Governor-General in Council for a period of three years, and may be reappointed. As at present constituted, the Board consists of a Judge of the Supreme Court, as President, and six other members.

It is the duty of the Board to make inquiry from time to time as to whether there is reasonable cause for belief that any habitual criminal, habitual offender, or other person under sentence of imprisonment or reformative detention is sufficiently reformed to be released on probation or discharged, or for granting discharge to any person who has been released on probation; and to make recommendations as to the release or discharge of any habitual criminal, habitual offender, or other person under sentence of imprisonment or reformative detention, and as to the conditions which may be imposed on any such release or probation. The Board is required to take into consideration, at least once a year, the case of every habitual criminal, habitual offender, or person under sentence of reformative detention. Other classes of prisoners may not apply for and are not entitled to consideration until they have served at least half the sentence (or live years in the case of those sentenced to terms exceeding ten years), and no case is to be considered until six months after the date of reception of the prisoner into prison.

The following table shows the number of cases considered by the Board during each of the five years ended in 1948.

Year.Borstal Detention.Reformative Detention.Hard Labour.Habitual Criminals.Probationers.Totals.
Crimes Amendment Act.Offenders Probation Act.
1944367271278361012974
19453962792732415151,002
1946371360249388151,041
1947352409232356131,047
19482514962483714101,056

Of the cases considered in 1948, recommendations were made for release on probation in 567 cases, and for discharge from prison in 8 cases. Ten probationers under the Offenders Probation Act were ordered to be discharged, while 6 probationers under the Crimes Amendment Act were recommended for discharge. In 1 case of an habitual criminal, recommendation was made for remission of head sentence. Seventeen petitions were declined, while the remaining 447 cases were deferred.

PROBATION.—Legislation on this subject dates from 1886. Under the Offenders Probation Act of 1920 probation was extended to cover other than first offenders, and may be granted for “any offence punishable by imprisonment, whether on indictment or otherwise.” Formerly there were numerous important exceptions. The maximum period of probation was fixed in 1920 at five years.

The conditions of release on probation include the necessity for a person on probation to report to the Probation Officer on specified days not more than one month apart, and to notify his address and any change of address. The nature and place of his employment must be made known to and be approved of by the Probation Officer, and he must not commit any offence against the law. The Probation Officer may warn him not to associate with any particular person or class of persons.

A breach of the conditions of the probationary licence renders the offender liable to imprisonment or fine, and in addition he may, in respect of the original offence, be either committed to prison or again released on probation.

The following figures are taken from successive returns prepared by the Chief Probation Officer.

Year.Number admitted to Probation.
1938715
1939942
1940902
1941709
1942637
1943896
1944920
1945886
1946919
1947972
19481,036

The following table gives the ages and terms of probation of offenders dealt with under the provisions of the Act during the year 1948.

Age, in Years.6 Months or under.1 Year.18 Months.2 Years.3 Years.4 Years.5 Years.Totals.
Under 2022140167812  268
20 and under 25231652097211 327
25 and under 30763114820  149
30 and under 401484154813  174
40 and under 502313225  63
50 and under 60320 71  31
60 and under 7017 63  17
70 and over12 22  7
    Totals7351265308771 1,036

JUVENILE OFFENDERS.—Under the provisions of the Child Welfare Act, 1925, offences committed by juveniles are dealt with by Magistrates in special Courts. The Child Welfare Amendment Act, 1927, altered the definition of “child” to cover persons under seventeen years of age, instead of sixteen as formerly. Cases dealt with in Children's Courts are not now included in the statistics relating to Magistrates' Courts, and it is not the practice to enter a conviction against juvenile offenders.

The following table shows the number of cases dealt with in the Children's Courts during each of the years 1938–48, and also, where available, the number of “distinct cases”—i.e., excluding multiple charges against the same person. The collection of detailed information relating to cases heard in Children's Courts was resumed in 1947, after a lapse of five years.

Year.Total Cases.Distinct Cases.
Males.Females.Totals.Males.Females.Totals.

* Not available.

19384,1473964,543***
19394,6854155,1002,6383572,995
19404,6904545,1442,6063882,994
19413,5963793,9752,1883362,524
19424,3576174,974***
19434,2625784,840***
19443,8505264,376***
19453,7324954,227***
19463,1754583,633***
19472,9413653,3061,6202851,905
19482,9484243,3721,6503431,993

Detailed statistics for Children's Court cases during each of the years 1938–41, 1947, and 1948 are as follows. The figures shown refer to total cases.

Type of Offence.1938.1939.1940.1941.1947.1948.

* Including forgery and uttering.

Sexual offences606657437077
Assaults244832243138
Other offences against the person432974
Robbery, burglary, and breaking and entering507487761383374223
Theft, receiving, and fraud1,7242,1141,9831,6391,4251,566
Unlawful conversion of vehicles273400364324283222
Wilful damage339532612469232305
Other offences against property*513645445131
Offences against good order753746592427266233
Indigent or delinquent child595548574417490546
Other offences21312012219677127
    Totals4,5435,1005,1443,9753,3063,372

The 3,372 cases heard during 1948 resulted as follows: dismissed or withdrawn, 180; admonished and discharged, 1,304; committed to care of Child Welfare Branch of the Department of Education, 672; placed under supervision, 1,053; committed to an institution, 53; fined, 81; otherwise dealt with, 29. One person under 17 years of age was sentenced in a Supreme Court during 1948. Fifteen distinct persons under 17 years of age were received into prison during the year. Eleven of these (including 1 female) were Borstal detainees, and I was received under sentence of reformative detention.

OFFENCES BY WOMEN.—Of the 52,762 criminal charges dealt with in the Magistrates' Courts in 1948, 2,756 or 5.22 per cent. were against females. This figure shows a slight increase on the 1947 total of 2,425, which was the lowest recorded since 1933. The comparable figure for 1946 was 2,699.

Most of the offences for which summary convictions are entered against women in the lower Courts are of a trivial nature, such as minor breaches of traffic regulations, using unlicensed radios, &c.

Of the more serious offences the most common for which convictions resulted during 1948 were—attempted suicide, 10; common assault, 26; theft, 381; fraud and false pretences, 23; drunkenness, 139; offensive conduct or language, 51; and vagrancy, 40.

That women in general are of a law-abiding disposition is also exemplified by the Supreme Court statistics, which disclose that only 31 females (4.5 per cent. of the total) were sentenced in 1948 for criminal offences. Of these, 3 were sentenced for bigamy and 12 for theft, receiving, and fraud.

The number of distinct females received into prison under sentence during 1949 was 56, the principal offences of these being—vagrancy, 13; theft, 18; false pretences, 4; drunkenness, 4; selling liquor without a licence, 2, and breach of probation, 7. Corresponding figures for 1948, were 57, the principal offences being—vagrancy, 8; theft, 16; fraud and false pretences, 6, and selling liquor without a licence, 5.

Two reformatories (at Addington and at Tawa Flat near Wellington) house women prisoners only. There is also a Borstal institution at Tawa Flat for women only.

OFFENCES BY MAORIS.—As previously mentioned, Maoris are included in the statistical tables presented elsewhere in this section, the data given here being for purposes of comparison. According to the population estimate of 31st December, 1948, 4.49 per cent. of the total population of New Zealand aged fifteen and over were Maoris (i.e., full, three-quarter, or half-caste).

The number of summary convictions of Maoris brought before Magistrates' Courts for the years 1938–41, 1947, and 1948 is shown in the next table.

Year.Class of Offence.Percentage of Total Convictions in Magistrates' Courts.
Against the Person.Against Property.Against Good Order.Other Offences.Totals.
Drunkenness.*Other.

* Excluding prohibition-order cases.

19381264745021,1176512,8705.78
19391314985991,1497083,0855.90
19401235296066478852,7906.05
19411397025859867103,1227.88
19471477453858009953,0727.49
19481137734168911,0083,2017.26

The 3,201 convictions entered against Maoris during 1948 related to 2,482 distinct offenders (2,316 males and 166 females).

The total number of Maoris convicted and sentenced in Supreme Courts during the five years 1944–48 was 612, or 18.6 per cent. of the total of 3,291.

Of the 127 Maoris (including 7 females) sentenced during 1948, 104 were committed from Magistrates' Courts, and 23 were tried and convicted in Supreme Courts. The following table shows the number of Maoris sentenced in the Supreme Courts during each of the last eleven years, together with the percentage of Maori offenders to total persons sentenced in each case.

Year.Offences against the Person.Offences against Property.*Total Offences.
Sexual Offences.Other.
Maoris Sentenced.Percentage of Total Sentences.Maoris Sentenced.Percentage of Total Sentences.Maoris sentenced.Percentage of Total Sentences.Maoris sentenced.Percentage of Total Sentences.

*Including forgery and uttering.

† Includes other Offences.

19381413.778.3238.0449.0
19392216.71012.85014.48214.4
19402317.81214.35116.98715.9
19412317.245.65016.67914.6
19422217.51723.33013.27015.3
19432624.5916.74113.47815.8
19442522.1711.94512.77813.9
19453932.01318.18921.914323.1
19463427.41518.36916.012418.9
19473221.51918.88718.714018.9
19482420.21417.38417.112717.7

The number of distinct Maoris received into prison under sentence during 1949 was 315 (17.6 per cent. of the total committals). Twenty-live females are included in this figure. Of the 990 prisoners held in custody at the 31st December, 1949, 225 (22.7 per cent.) were Maoris. Corresponding figures for 1948 were: received under sentence during year, 347 (15.9 of total committals), twenty-one females being included in this figure; held in custody at the 31st December, 1948, 1,025, of which 214 (20.9 per cent.) were Maoris.

The increase in serious crime among Maoris in recent years, while regrettable, is partly explained by the youthfulness of the Maori population, and the noticeable drift to the cities and towns, where temptation to crime is relatively greater.

DRUNKENNESS.—The following table shows the number of convictions for drunkenness, together with the rate per 1,000 of mean population for each of the years 1938–41, 1947, and 1948.

Year.Convictions for Drunkenness.Per 1,000 of Mean Population.
Males.Females.Totals.Males.Females.Totals.
19385,5671795,7466.820.233.58
19396,2741676,4417.590.213.96
19405,7521705,9226.990.213.62
19414,9451555,1006.150.193.13
19472,683802,7632.970.091.53
19483,1741403,3143.440.151.80

Repeated charges against the same person are included in the totals shown in the preceding table, but the figures do not include technical convictions in cases of applications for the issue of prohibition orders, of which there were 771 in 1948. The remarkably low rate for 1947 of 1.53 convictions for drunkenness per 1,000 mean population had never been approached in New Zealand since official statistics of this nature have been available, the lowest rate previously recorded being 2.16 in 1935. In 1895 the proportion was 6.52.

TRAFFIC OFFENCES.—The number of traffic offences dealt with in Magistrates' Courts during 1948 was 22,374, resulting in 21,305 convictions. For 1947 corresponding figures were 20,657 cases and 19,914 convictions. Comparative figures for the years 1942–46 are not available, and in any case the indirect effects of petrol rationing and the shortage of tires rendered any valid comparison with pre-war years impossible.

The most noticeable feature of the 1947 and 1948 figures is the striking increase in parking offences, which perhaps is not surprising in view of the problem of traffic congestion in the main centres of population.

No less than 48.3 per cent. of all convictions in Magistrates' Courts during 1948 related to traffic offences.

The following table shows convictions in Magistrates' Courts for traffic offences during each of the years 1938–41, 1947, and 1948.

Offence.1938.1939.1940.1941.1947.1948.
Negligent driving causing injury     2
Failing to stop motor-vehicle after accident involving bodily injury     5
Unlawfully converting vehicle to own use372384471430458315
Drunk in charge of motor-vehicle685670533419331394
Drunk in charge of other vehicle1617201837
Excessive speed in motor-vehicle2,8553,3892,4671,3841,9863,087
Negligent or dangerous driving of motor-vehicle4,5234,6243,2831,6783,4033,273
Negligent or dangerous driving of other vehicle426451467295282395
Breaches of regulations for the lighting of vehicles2,3012,3581,8541,3912,7462,315
Offences relating to the registration, &c., of motor-vehicles4,3172,3071,9387591,3701,503
Offences relating to driver's licence2,2791,9841,9021,3311,310
Breaches of parking regulations3,5473,4981,7791,4324,9554,664
Other traffic offences5,2375,7464,7324,4333,0494,035
Totals24,27925,72319,52814,14119,91421,305
Convictions per 1,000 of mean population15.1115.7911.938.6711.0511.57

In addition to the offences punishable on summary conviction there are the more serious cases involving death or injury, which are almost invariably sent on to the Supreme Court for trial or sentence. Seventy-four such cases were sent forward in 1948, resulting in 22 persons being sentenced as follows: negligent or drunken driving causing death, 8; negligent or drunken driving causing injury, 5; failing to stop after accident involving injury, 9. The sentences imposed (in addition to fine, imprisonment, &c.) include 16 cases of cancellation of driving licence.

Figures showing the number of persons sentenced in Supreme Courts for serious traffic offences during each of the years 1938–48 will be found on page 183.

OFFENCES REPORTED TO THE POLICE.—So far all criminal statistics in this section have referred to offenders brought before the Courts, no account being taken of those cases where offences have been reported to the police but in which no arrest or summons resulted.

The following figures relating to offences reported are taken from the reports of the Police Department for the years 1944–48.

Year.Number of Offences reported.Offences in which Arrests or Summonses resulted.
Number.Percentage of those reported.
194431,96027,22985.20
194533,74427,96582.87
194634,01628,81884.72
194734,62829,23884.43
194837,04631,46684.94

It will be seen that, in cases where a crime is definitely established as such and reported to the police, an arrest or summons usually follows. The proportion of arrests and summonses varies, however, with the offence. Offences against the person, as might be expected, yield a much higher proportion of arrests or summonses than offences against property, in which detection of the lawbreaker is relatively more difficult.

Also taken from the annual reports of the Police Department, the following table shows, in respect of some of the principal offences, the number of offences reported during the last four years, and the number of arrests and summonses which resulted.

Offences.1945.1946.1947.1948.
Reported.Resulting in Arrest or Summons.Reported.Resulting in Arrest or Summons.Reported.Resulting in Arrest or Summons.Reported.Resulting in Arrest or Summons.
Murder and attempts2727151315141615
Manslaughter5533861111
Negligent driving causing death or injury3534494546444542
Attempted suicide7472616170698480
Assaults, wounding, &c.761693757702820780840812
Sexual offences388346376329434394424388
Robbery, breaking and entering, theft and receiving11,8097,04710,8806,71910,8856,44811,3116,819
Forgery, embezzlement, and fraud7687198167469658841,5051,432
Arson and attempts4334211624173635

Chapter 8. SECTION 8—DEFENCE

Table of Contents

CONTROL AND CO-ORDINATION OF DEFENCE.—In New Zealand control and co-ordination of defence activities are obtained through a Defence Committee of Cabinet, the appointment of one Minister of Defence in charge of the three Services, and through a series of inter-Service committees. The comparative simplicity of defence problems in New Zealand has required neither the appointment of a Minister of Defence directing subordinate Ministers in charge of each Service nor the establishment of a Department of Defence superior to the Navy, Army, and Air Departments. Co-ordination is facilitated by the presence in the Prime Minister's Department of a Defence Secretariat serving the main policy-forming committees and performing some of the functions which in other countries are handled by Departments of Defence.

Defence Committee.—The Defence Committee consists of the Prime Minister (Chairman), the Attorney-General, and the Ministers of Defence and External Affairs. The Chiefs of the Naval, General, and Air Staffs and the Secretaries of the Treasury and of External Affairs attend meetings of the Committee in a consultative capacity. The purpose of the Committee is to keep defence policy and organization constantly under review, including questions of co-operation on defence with other countries of the British Commonwealth and military questions arising as a result of New Zealand membership of the United Nations.

Chiefs of Staff Committee.—The Chiefs of Staff Committee, comprising the Chiefs of the Naval, General, and Air Staffs, is responsible for advising the Government on defence policy and strategic questions. It is served by several inter-Service committees dealing with various subjects such as strategic and operational plan's, intelligence, and communications.

Principal Administrative Officers' Committee.—This Committee consists of the Senior Personnel, Supply; and Finance Officers of each of the Services and a representative of the Treasury. For the convenient exercise of its functions the Committee normally divides into separate Supply and Personnel Committees, each of which is assisted Insubordinate committees considering particular problems such as medical arrangements, recruiting, and the design and provision of clothing and other stores.

Co-operation With Other Countries.—In order that contact might be maintained with other countries, New Zealand Joint Service Liaison Staffs are stationed in London. Melbourne, and Washington. Similarly, both United Kingdom and Australia have Service Representatives in Wellington attached to the Offices of their respective High Commissioners and there is a Military Attache on the staff of the United States Embassy in Wellington.

Industrial War Potential.—Planning in respect of the demands which in war or on the throat of war the Services would make on industry is the task of the Joint War Production Committee. This Committee, which reports to the Government through the Minister of Industries and Commerce, is centred in the Department of Industries and Commerce. It consists of the Secretary of the Department of Industries and Commerce (Chairman), and representatives of the Treasury, the Department of Scientific and Industrial Research, the Prime Minister's Department, and the Senior Supply Officers of the Services.

Defence Science.—Defence Science activities in New Zealand are guided by an executive committee comprising the Chiefs of Staff and the Secretary of the Department of Scientific and Industrial Research, and known as the Defence Science (Policy) Committee. This Committee is aided by two advisory committees (the Defence Science Advisory Committee and the Advisory Aeronautical Research Committee) on which the Services, non-Government Scientists, and Government members serve. The Defence Science (Policy) Committee is served by the Joint Plans Committee (Science) and its Technical Sub-Committees, which are responsible for the planning and implementation of Defence Research projects.

These sub-committees and research activities under their ægis are advised by the Scientific Adviser to the Armed Forces, co-ordination being achieved through the Department of Scientific and Industrial Research. To this end a Defence Science Secretariat operates within the Department of Scientific and Industrial Research. Research projects are carried out either in existing departmental or external laboratories or, if need be, an organization is brought into being. To foster basic research in fields having defence implications, the University Colleges are assisted by grants from Defence Science funds for a limited number of approved projects.

In order to build up a group of scientific workers with a thorough insight into Service requirements the New Zealand Defence Scientific Corps has been established. These men are recruited to one of the Services on a short-service commission basis of live or six years, during which time they undertake post-graduate studies for two to three years, and for the remaining period work on problems related to defence requirements. Fifteen appointments have been made from the inception of this scheme to the 31st March, 1950.

The Defence Science programme is co-ordinated with Commonwealth requirements, and a number of scientists have been seconded to work on projects in other Commonwealth countries.

THE ROYAL NEW ZEALAND NAVY.—The legislative authority for the New Zealand Naval Forces exists in the Naval Defence Act, 1913, and its later amendments. The 1950 amendment reconstituted the Naval Board of New Zealand; provided for a civilian Navy Secretary and the appointment of temporary officers of the Naval Forces; established the Women's Royal New Zealand Naval Service as part of the permanent Naval Forces; and clarified the power to raise reserve and auxiliary forces and services. The circumstances in which persons belonging to the reserve forces are subject to naval discipline are also given, while the former provision that Naval Forces shall be raised and kept by voluntary enlistment only is repealed, as being inconsistent with the provisions of the Military Training Act, 1949.

Administration of the Naval Forces.—The base of the Royal New Zealand Navy is at Devonport, Auckland, and the repair yard is known as H.M.N.Z. Dockyard. Devonport. The property in this base was vested in the Auckland Harbour Hoard, but certain important rights therein were exercised by the Naval Board under the terms of two contracts entered into between the Admiralty and the Auckland Harbour Hoard in 1899 and 1903. These contracts, which were consolidated in 1936, gave full rights of the use of the machinery and the Calliope Dock.

State of the Navy.—A review now follows giving the state of the Navy as at 31st March, 1950.

In Commission:

“Bellona”Cruiser.
“Pukaki,” “Rotoiti,” “Kaniere,” “Taupo,” “Tutira,” “Hawea”Frigates.
“Lachlan”Survey ship.
Ten motor-launchesFishery protection, training, harbour duties, survey work, and R.N.Z.N.V.R. Divisions.
“Arataki,” “Manawanui”76 ft. tugs.
“Endeavour”Power lighter.
“Philomel”Depot ship, Auckland. Responsible for recruiting, drafting, and discharge o personnel, also for the training of the Gunnery, Torpedo, and Antisubmarine, Communications and Mechanical Branches.
“Tamaki”New-entry training establishment, Auckland. Responsible for basic training of all new entries.
Naval W/T Station, Waiouru “Maori”R.N.Z.N. Headquarters, London.

In Reserve:—

“Black Prince”Cruiser.
“Tui,” “Killegray,” “Inchkeith,” “Kiwi,” “Scarba,” “Hinau,” “Sanda,” “Rimu”A/S, M/S Trawlers.
“Toia”Saint Class Tug.
“Tasman”Naval Base, Lyttelton.

An A/S M/S trawler, the “Manuka,” is under charter to the Chatham Islands Fisheries.

Personnel.—Officers: The policy of the New Zealand Naval Board is to man the Royal New Zealand Navy entirely with New Zealand officers and men. At present, to make up the deficiency, a number of officers, especially of the higher ranks, are serving on loan from the Royal Navy. These are being replaced gradually as Royal New Zealand Navy personnel become available through the following sources:—

  1. By promotion direct from the lower deck to permanent commissions in the Executive, Engineering, Electrical, and Supply and Secretariat Branches.

  2. By promotion of experienced ratings to Commissioned Officer (Branch List).

  3. By direct entry as Naval Cadet in the Executive, Engineering, Electrical, and Supply and Secretariat Branches.

  4. By direct entry of men with civilian professional qualifications for short-service commissions in the Medical, Dental, Education, and Special Branches, and as Chaplain.

The ranks in the Royal New Zealand Navy are:—

CaptainIn the Executive, Engineering, Electrical, Supply and Secretariat, and Special Branches.
Commander
Lieutenant-Commander
Lieutenant
Sub-Lieutenant
Midshipman and Cadet
Senior Commissioned and Commissioned Communications Officer.
Senior Commissioned and Commissioned Engineer.
Senior Commissioned and Commissioned Mechanician.
Senior Commissioned and Commissioned Electrical Officer.
Senior Commissioned and Commissioned Ordnance Officer.
Senior Commissioned and Commissioned Shipwright.
Senior Commissioned and Commissioned Writer Officer.
Senior Commissioned and Commissioned Stores Officer.
Senior Commissioned and Commissioned Catering Officer.
Senior Commissioned and Commissioned Cookery Officer.
Senior Commissioned and Commissioned Master-at-Arms.
Instructor CommanderEducation Officers.
Instructor Lieutenant-Commander
Instructor Lieutenant
Surgeon CaptainIn the Medical Branch.
Surgeon Commander
Surgeon Lieutenant-Commander
Surgeon Lieutenant
Senior Commissioned and Commissioned Wardmaster

Dental Officers have the suffix “D”—i.e., Surgeon Lieutenant (D).

Officers who have made the Royal New Zealand Navy their career serve up to certain specified retiring ages and qualify for superannuation. They are then placed on the Retired List and have a liability to serve again in the event of war or emergency.

R.N.Z.N. Cadets: A limited number of vacancies occur each year for direct entry as Officer Cadet. To be eligible for entry as Naval Cadets in the Executive, Engineering, Electrical, and Supply and Secretariat branches candidates must pass the competitive Entrance Examinations, Interview, and Medical Boards. Before applying, candidates must have passed the School Certificate or University Entrance Examination, and be between the ages of seventeen years and eighteen years eight months, on date of entry.

Soon after entry the candidates are sent to England to undergo training at the Royal Naval College, Dartmouth, Royal Naval College, Greenwich, and various training establishments of the Royal Navy. After completion of their training they return to New Zealand as fully qualified officers and serve the remainder of their naval careers as permanent officers of the Royal New Zealand Navy.

Royal Navy Cadets: The Admiralty make provision for the nomination of a limited number of New-Zealand-born youths into the Royal Naval College, Dartmouth, and of special-entry Cadets to the Naval College and to the training cruiser; candidates are required to pass medical and educational examinations. The age qualification now ruling is sixteen years for R.N. College, Dartmouth, and seventeen years eight months to eighteen years four months for special-entry Cadets. These New-Zealand-born officers serve permanently in the Royal Navy.

Ratings: Recruiting of New Zealand boys and men is open and continuous. At present there is a limited number of Royal Navy men on loan to the Royal New Zealand Navy, and, like the officers, these will be replaced by New-Zealand-entry personnel. The term of engagement is eight years from the age of eighteen years on the active list, and the men on release to civilian life have a liability to serve in the Royal New Zealand Naval Reserve until the age of forty years is reached. The initial engagement may be followed by others, a total of twenty years' service qualifying for superannuation.

The branches in which men serve are: Seaman; Communication (visual signalling and radio): Stoker Mechanic; Sick Berth; Supply and Secretariat (writers, stores assistants, cooks, and stewards); Electrical (electrical artificers, radio electrical artificers, electricians, and radio electricians); Engine-room Artificer; Ordnance Artificer; Shipwright; Joiner; Blacksmith; Plumber; Painter; and apprenticeships in Ordnance, Electrical, Engine Room, and Shipwright Branches.

All ratings are eligible for advancement to Leading Seaman, Petty officer and Chief Petty Officer rates in their branches.

Women's Royal New Zealand Naval Service: A place has been given in the peacetime Royal New Zealand Navy for a limited number of women who serve as members of the Women's Royal New Zealand Naval Service in shore establishments. The initial engagement is for two years, with the option of serving for further periods. They are trained to replace men in the Communications and Supply and Secretariat Branches. Entry is made in the rating of Probationary Wren, and all Wrens are eligible for advancement to the rating of Chief Wren.

The Royal New Zealand Naval Reserve: This consists of officers of the Merchant Navy who are prepared to be called up for service in the Navy in the event of emergency, its strength at the 31st March, 1950, was 16 officers. The (inactive) branch of this Reserve consists of all rates of the Royal New Zealand Navy who have been discharged from a regular engagement until they reach forty years of age. At the 31st March, 1950, its strength was 289 ratings.

The Royal New Zealand Naval Volunteer Reserve: This originally consisted of those who did not follow the sea as a profession but who were desirous of serving their country in time of war or emergency in a naval capacity. There are four Divisions established at Auckland, Wellington, Christchurch, and Dunedin.

With the advent of compulsory military service it has been decided that trainees who opt for service in the Navy shall be affiliated with the Volunteer Reserve. The trainees will carry out their full time training in H.M.N.Z.S. “Tamaki” and then be attached to one of the Reserve Divisions. The strength of this Reserve was 73 officers and 366 ratings at the 31st March, 1950.

The Royal New Zealand Naval Emergency Reserve: This consists of men who have served with the Royal New Zealand Navy in the Second World War and who have expressed their willingness to serve again in the Royal New Zealand Navy in the event of an emergency. Ex-members of the Women's Royal New Zealand Naval Service are eligible for enrolment. These reservists perform no service or training in peacetime. At the 31st March. 1950, the strength of the Reserve was 78.

The Royal New Zealand Naval Volunteer Supplementary Reserve: This Reserve comprises discharged Reserve officers of the Second World War who have expressed their willingness to serve in the Royal New Zealand Navy in the event of an emergency. The Reserve totalled 264 officers at the 31st March, 1950.

Strength of the Navy.—At the 31st March, 1950, the Navy strength was 223 officers and 2,284 ratings, a total of 2,507 and an increase of 18 officers and 221 ratings on the 1949 figure. Royal Navy personnel on loan included in these figures were 66 officers and 73 ratings.

Activities During the Year Ended 31st March, 1950.—The surveying ship, obtained on loan from the Royal Australian Navy, completed a survey of the Foveaux Strait from Bluff Harbour to Nugget Point and commenced a survey of Cook Strait and Port Nicholson approaches.

The New Zealand Squadron visited Australian ports in October, 1949, and carried out combined exercises with the Australian Fleet. Ships of the Australian Fleet returned the visit in February—March, 1950, and combined exorcises were again carried out.

Navy Expenditure.—During the year ended 31st March. 1950, the sum of £3,141,319 was expended on the Royal New Zealand Navy, £3,096. of this amount being a charge on the War Expenses Account and £3,138,223 on the Consolidated Fund—Vote, “Navy.” Comparable figures for the previous year were £18,884 from the War Expenses Account, and £2,300,533 from the Consolidated Fund. Payments from the former War Expenses Account, represent expenditure in connection with or consequent upon the late war, while payments from the Consolidated Fund represent current defence expenditure. It may be of interest to record that the total naval expenditure from the War Expenses Account from September 1939, to its abolition as from the 1st April, 1950, was £43,365,758.

THE ARMY.—The New Zealand Army is raised, maintained, and organized under the authority of the New Zealand Army Act, 1950.

The Army consists of the Regular Force, the Territorial Force, the Army Reserve, the Cadet Corps, and military forces raised in time of war or other like emergency.

The Emergency Force for service in Korea in fulfilment of the obligations undertaken by New Zealand in the Charter of the United Nations was raised originally under the authority of the Emergency Forces Act, 1950, but as the power to raise and maintain such a force is now contained in the New Zealand Army Act the relevant provisions of the Emergency Forces Act were repealed.

The New Zealand Army comprises the following Corps:—

  • The Royal New Zealand Artillery.

  • The Royal New Zealand Armoured Corps.

  • The Royal New Zealand Engineers.

  • The Royal New Zealand Corps of Signals.

  • The Royal New Zealand Infantry Corps.

  • The Royal New Zealand Army Service Corps.

  • The Royal New Zealand Army Medical Corps.

  • The Royal New Zealand Army Ordnance Corps.

  • The Royal New Zealand Electrical and Mechanical Engineers.

  • The Royal New Zealand Dental Corps.

  • The Royal New Zealand Chaplains Department.

  • The New Zealand Army Pay Corps.

  • The New Zealand Army Legal Department.

  • The New Zealand Provost Corps.

  • The New Zealand Army Nursing Service.

  • The New Zealand Women's Army Corps.

  • The New Zealand Cadet Corps.

The New Zealand Army Act as far as possible places the officers and soldiers of the Regular and Territorial Forces on the same footing.

Liability for Periods and Conditions of ServiceRegular Force: All officers and soldiers of the Regular Force are liable at all times for service within New Zealand and, with the exception of minors, overseas.

Enlistment in the Regular Force, which is voluntary, is for a period of five years. Re-engagements for further periods are encouraged.

Territorial Force: In time of war or other like emergency the Governor-General may, by Proclamation, transfer the Army Reserve or any specified portion thereof to the Regular Force or to the Territorial Force, and declare the Territorial Force liable for continuous service within New Zealand or overseas during the continuance of such state of war or emergency.

Territorial soldiers on completing their obligations fur whole time and part-time training under the Military Training Act, 1949, will be posted to the Army Reserve, which will provide the trained man-power if and when, in any future war, an Expeditionary Force is required.

The New Zealand Army Act also empowers the Governor-General to accept the offer of any officers or soldiers of the Territorial Force or the Army Reserve, or of any other persons, to render themselves liable, or to enlist in the Army, as the case may be, for service within or outside New Zealand.

The Military Training Act, 1949.—Under the Military Training Act, 1949, every British male subject ordinarily resident in New Zealand is liable to be called upon to serve three terms of service on attaining the age of eighteen years. Provision is made for exemptions principally in the case of conscientious objectors and also for deferment in the cases of students and others.

The service is as follows:—

  1. A period of whole-time service of fourteen weeks, which is served in a training camp.

  2. A period of part-time service of three years during which the soldier must serve for a total of sixty days made up of fourteen days in-camp and six days out-of-camp training each year.

  3. A six-year term of service in the Army Reserve, during which the soldier has no training liabilities.

Command and Organization.—The Army Board consists of—

  • The Minister of Defence, as President;

  • The Chief of the General Staff (First Military Member);

  • The Adjutant-General (Second Military Member);

  • The Quartermaster-General (Third Military Member);

  • The Army Secretary; and

  • A Territorial Officer (Associate Member).

The Board is charged with the administration and, through the officers appointed for that purpose, the command of the Army.

The Army in peace is so organized, trained, and equipped that, in the event of war, it can undertake rapidly and efficiently the tasks which will fall to it. Based on this principle, units and formations are grouped as follows:—

  • Army Troops, including Army Headquarters, Army Schools, and base units. District Troops, including District and Area Headquarters, Coast and Antiaircraft Artillery units.

  • N.Z. Division.

In general, Army Troops contain the machinery for the higher command and administration of the New Zealand Army; District Troops, the home defence and elementary training element; and the N.Z. Division is the field force for employment within New Zealand or overseas as the situation may demand.

Training.—Regular Force: Except in cases of special entry from the Universities and of personnel who have had active-service experience, Regular officers are commissioned, in the rank of Lieutenant, on graduation from the Royal Military College, Duntroon, Australia. They receive specialist and refresher training in New Zealand, while in certain eases their advanced training is carried out at British Army schools. Promotion to Captain and Major is gained after six and thirteen years commissioned service respectively, providing that the prescribed promotion examinations are passed. Candidates for Staff College must pass the same entrance examinations as officers of the British Regular Army.

Regular other ranks are trained at the Army Schools in New Zealand. In certain cases advanced training is received in the United Kingdom.

Territorial Force: The annual obligatory training prescribed for Territorial personnel consists of—

  1. Annual training camp—fourteen days.

  2. Out-of-camp training—six days, made up of whole-day or week-end parades, plus a proportion of evening parades in the form of instructional classes.

Attendance at a further twenty days training annually, including courses at Army or District Schools, is authorized for officers and non-commissioned officers.

Courses lasting one week are obligatory for officers before promotion examinations.

Army Training Establishments.—Headquarters, Army Schools, commands and administers a group of Army Schools which provide, courses for all ranks of the Regular Force as well as officers and specialist non-commissioned officers of the Territorial Force.

The group consists of the Tactical School, Armoured School, Schools of Artillery, Infantry, Signals and Military Engineering, Royal New Zealand Army Service Corps School, School of Electrical and Mechanical Engineering, School of Army Administration, and the Regular Force Depot.

The Regular Force Depot provides basic recruit and instructor courses for all arms of the Regular Force.

District Schools: Each military district has a small training school at which are hold courses for Territorial officers and other ranks, and for Cadets.

Cadets.—One hundred and nineteen secondary schools have Cadet units. These units are designated by the name of the school. Service in these units is voluntary. Annual training approximates thirty drills each of one and one-half hours. All units are basically infantry, but provision is made in the larger units for such specialist activities as Sea Scouts, Artillery Troops, Signal Troops, and Air Training Corps Flights. All units can take part in certain Empire shooting competitions, and have had marked success. In 1949 New Zealand was second in the King George V trophy, won three other major awards, and had forty-four teams in the first one hundred Empire teams. Courses for officers and non-commissioned officers are held at district schools, and units hold camps or barracks annually.

Rifle Clubs and Associations.—Rifle clubs, which formerly were part of the Defence Forces, are no longer part of the Army, although, subject to certain prescribed conditions, they retain the privileges enjoyed prior to the passing of the New Zealand Army Act.

All such clubs, as well as Rifle Associations (including the parent body, the National Rifle Association of New Zealand) must be formally recognized by the Army Board.

The planning, construction, and maintenance of rifle ranges, and safety precautions to be observed in conducting rifle practices and competitions, are governed by orders issued by the Army Board.

Army Expenditure.—The War Expenses Account was set up under the provisions of the War Expenses Act, 1939, and all receipts and payments in connection with the war effort were dealt with through that account. Defence expenditure was previously included as an annual appropriation of the Consolidated Fund, and, upon the War Expenses Account being brought into existence the unexpended balances of the 1939–40 defence appropriations were paid into the new account. Commencing with the 1946–47 financial year, the defence vote was restored to the Consolidated Fund, and current defence expenditure has since been met therefrom. Expenditure arising from or consequent upon the late war was paid from the War Expenses Account up to 31st March, 1950, and the account was closed as from 1st April, 1950.

The following table shows Army expenditure under the headings of the War Expenses Account and the Consolidated Fund for the financial years 1948–49 and 1949–50:—

Year Ended 31st March,£
1949War Expenses Account—Army1,661,069
 Consolidated Fund—Vote, “Army”2,229,876
1950War Expenses Account—Army255,047
 Consolidated Fund—Vote, “Army”2,609,409

The total expenditure on the Army from the War Expenses Account from September, 1939, to 31st March, 1950, was £312,380,424.

Strength of the Army.—The strength of the Army as at 31st March, 1950, was as follows:—

Regular Force— 
  Officers403
  Other ranks2,693
    Total3,096 (includes 226 women)
Territorial Force— 
  Active officers1,063
  Active other ranks905
    Total1,968
Reserve officers688
    Grand total5,752 all ranks.

THE ROYAL NEW ZEALAND AIR FORCE.—The Royal New Zealand Air Force was constituted by the Air Force Act, 1937, which, together with the Air Force Amendment Act, 1947, provided for the following:—

  1. The Regular Air Force.

  2. The Territorial Air Force.

  3. The Air Force Reserve.

  4. The Air Training Corps.

  5. The Women's Auxiliary Air Force.

When the Air Force Act, 1937, was passed it was contemplated that early opportunity would be taken to introduce legislation in New Zealand similar in principle to the Air Force Act (Imperial), which was to apply in the interim, but which, designed for the Imperial Forces, was not wholly suitable for the R.N.Z.A.F.

The necessary draft legislation, delayed by the Second World War, was completed in 1950, and the Royal New Zealand Air Force Act, 1950, passed by Parliament.

The Royal New Zealand Air Force Act, 1950, which parallels the New Zealand Army Act in principle, replaces the Air Force Act, 1937, and its amendments, and provides legislation for the Air Force in peace and war, in terms of present-day requirements and conditions.

Command and Administration.—The R.N.Z.A.F. is administered by the Air Board, which consists of—

  • The Minister of Defence, as President.

  • The Chief of the Air Staff.

  • The Air Member for Personnel.

  • The Air Member for Supply.

  • The Air Secretary.

The Regular Air Force provides commanders and staffs at headquarters, liaison offices overseas, stations in New Zealand and Fiji, and instructional staffs for all elements of the R.N.Z.A.F.

The Regular Air Force: Service in the Regular Air Force is voluntary, and normal entry to the ranks is through an initial engagement of five years (non-technical trades) or eight years (technical trades).

Extensions of service beyond these periods provide, broadly, for a 1 to 2 ratio of long to short-service airmen within the Regular Air Force.

Candidates for commissions will be drawn largely from the ranks, and an element with higher educational and specialist qualifications will be commissioned on joining the service. Commissions are either permanent or short-service, the latter of five years' duration and carrying an obligation for service with the Air Force Reserve.

Retiring-ages for officers holding permanent commissions in the General Duties Branch are: Squadron Leader and below, forty-five years; Wing Commander, forty-eight years; Group Captain and above, fifty-three years; while those for other branches are forty-nine, fifty-one, and fifty-three years respectively.

R.N.Z.A.F. Non-Regular Forces: During 1948 the non-regular forces of the R.N.Z.A.F. were combined for administration and directive purposes. The. Territorial Air Force, Active Reserve, General Reserve, and Air Training Corps are co-ordinated by the Directorate of Reserves at Air Force Headquarters. The detailed administration of all non-Regular activities in their areas is the responsibility of Reserve Wings which have been established on R.N.Z.A.F. Stations. Whenuapai, Ohakea, and Wigram.

The Territorial Air Force consists of four ground attack fighter squadrons established in Auckland, Wellington, Christchurch, and Dunedin.

Membership of the Active Reserve has been confined to senior officers who can be placed in command or administrative appointments in the event of mobilization, to officers with approved flying instruction qualification, and to certain skilled tradesmen.

The General Reserve comprises a list of officers and other ranks with previous Service experience who have indicated their desire to serve with the R.N.Z.A.F. in an emergency.

The Air Training Corps continues to provide a valuable source of recruits for the Regular Air Force. The scheme of flying training for selected cadets at aero clubs provides a welcome incentive to service in the Air Training Corps, and will be a sound basis for further training under the Military Training Act, 1949.

Training Establishments.—Flying training activities are centred at Wigram, which contains the Flying Training School, Central Flying School (for the training of instructors). Instrument Weather School, and Air Navigation School. Multi-engined conversion training was transferred to Ohakea in 1949, and is conducted by No. 14 Squadron.

Recruit and General Service Training is also centred at Wigram in the Aircraftman and Aircraft women Recruit Training Schools, Cadet Entrants' School, and N.C.O. School of Instruction. An Officers' School has been established at Whenuapai to give training in administration and organization to all junior officers.

Technical training is carried out at Hobsonville except for those trades catered for by the Electrical and Wireless School, Wigram.

Close liaison with the Royal Air Force has been maintained by the exchange of officers and operational flights and by the posting of senior R.N.Z.A.F. officers to courses at the Imperial Defence College, Joint Services Staff College, R.A.F. Staff College, and R.A.F. specialist schools. A similar liaison with the Royal Australian Air Force is being established with R.N.Z.A.F. officers attending the School of Land—Air Warfare.

Strength of the Air Force.—The strength of the R.N.Z.A.F. at the 31st March. 1950, was—

Regular Air Force3,134
Women's Auxiliary Air Force361
Territorial Air Force296
Active Reserve485
General Reserve2,654
Air Training Corps4,560

Activities During Year Ended 31st March, 1950.—The activities of the Royal New Zealand Air Force in 1949 were directed toward the consolidation of the Regular core of the Force, and a recruiting campaign aimed at a steady build-up to required peacetime strength.

In implementation of consolidation, long-term engagements were granted to selected personnel, due consideration being given to the requirements of planned careers and avenues of advancement.

Although the, response to the recruiting campaign was not fully up to expectation, considerable advance has been made in induction and training of recruits in all trades. The training schools at Wigram and Hobsonville were the most active units in the R.N.Z.A.F. during 1949.

The normal operational commitments of the R.N.Z.A.F. plus several special missions were carried out by the operational units; search and rescue and “mercy” missions by No. 5 Squadron Catalinas from Lauthala Bay and Hobsonville; inland search and rescue by Hying stations in New Zealand; No. 41 Squadron courier service to Singapore to maintain a detached flight operating with Far East Air Force; an internal R.N.Z.A.F. freight service; and a flying-boat exchange between No. 5 Squadron, Lauthala Bay, and No. 88 Squadron, R.A.F., Hong Kong. In addition, the R.N.Z.A.F. continues to be represented by two crews on No. 24 Commonwealth Squadron, Royal Air Force.

Miscellaneous flying activities have included regular fire patrols in the Rotorua area during the summer months; the carrying of R.N.Z.A.F. personnel and freight as required by No. 42 Squadron; co-operation with the Department of Scientific and Industrial Research, in “aerial top-dressing” experiments, &c.

Active Units of the R.N.Z.A.F.—Active units at present comprise:—

R.N.Z.A.F. Station, Lauthala Bay (Fiji)No. 5 Flying-boat Squadron.
R.N.Z.A.F. Station, HobsonvilleTechnical Training School. Detached flight of No. 5 Squadron.
R.N.Z.A.F. Station, WhenuapaiNo. 41 Transport Squadron with detached fight at Singapore. Officers' School. School of Administration. Research and Development Flight at Ardmore. Northern Reserve Wing. No. 1 T.A.F. Squadron.
R.N.Z.A.F. Station, OhakeaNo. 14 Multi Conversion Squadron. No. 75 Fighter Bomber Squadron. No. 1 Repair Depot. R.N.Z.A.F. Telecommunications Unit. Central Reserve Wing. No. 2 T.A.F. Squadron.
Air Department Headquarters Unit (Shelly Bay)Provides accommodation and administrative services for personnel of Air Force Headquarters.
R.N.Z.A.F. Station, WoodbourneAircraft Storage Depot.
R.N.Z.A.F. Station, WigramFlying Training Schools. Air Navigation School. Electrical and Wireless School. General Service Training Schools. Southern Reserve Wing. No. 3 T.A.F. Squadron.
R.N.Z.A.F. Station, TaieriTraining School for C.M.T. entrants. No. 4 T.A.F. Squadron.

In addition, there are stores depots at Te Rapa and Weedons.

Air Force Expenditure.—The total expenditure on the Air Force for the year ended 31st March, 1950, was £4,135,222. Payments included in this figure, which were a charge on the Consolidated Fund, amounted to £4,074,496, the remaining £60,726 being payments from the War Expenses Account. Expenditure for the 1948–49 financial year totalled £6,026,473, the Consolidated Fund and War Expenses Accounts components of this sum being £5,857,933 and £168,540 respectively. The total amount expended on the Air Force from the War Expenses Account over the period September, 1939, to the 31st March, 1950, was £148,736,581.

SUMMARY OF WAR-TIME ACTIVITIES OF ARMED FORCES.—In the following pages, a condensed account of the war-time activities of the three armed services is given. Post-war armed forces raised for duties overseas are given at the end of this summary.

Army Expeditionary Forces.—South African War: New Zealand supplied ten contingents for service during the South African War, comprising a total of 6,500 officers and men.

First World War, 1814–18: Immediately the Great European War of 1914–18 broke out an Expeditionary Force was despatched to Western Samoa and occupied those islands, while a larger force in the form of a mixed brigade was despatched to Europe. The latter force was, however, landed in Egypt, and took part in the defence of the Suez Canal. It gave a good account of itself in the desperate campaign on Gallipoli, and after being withdrawn to Egypt was expanded into a Division and a Mounted Brigade. The Division then went to the Western Front, while the Mounted Brigade continued to operate in Palestine. Both forces became famous for their military qualities, and took part in practically all the great actions of their respective theatres up to the Armistice.

A total of 98,950 troops left New Zealand for service with the New Zealand Expeditionary Forces, and, of these, 16,697 lost their lives on active service. In addition to the 98,950 of all ranks of the New Zealand Expeditionary Forces, 944 British Army Reservists, British Naval Reservists, and others left New Zealand to rejoin their units in the United Kingdom or in a theatre of war. It is also known that 3,370 (not included above) left New Zealand during the period of the war and joined units of the British Forces or the Expeditionary Forces of other Commonwealth Countries.

On the Armistice being declared in November, 1918, New Zealand had 52,000 troops in the field, while 10,000 more were ready to embark or were under training.

The tremendous amount of transport work involved in the conveyance of these forces to Egypt, France, Britain, Gallipoli, and Samoa was carried out with extraordinary success, not one New Zealand transport having been lost while conveying troops.

The troops provided for foreign service represented nearly 10 per cent. of the total population of New Zealand in 1914, and over 40 per cent. of the male population between the ages of twenty and forty-five years. These percentages do not take into account New Zealanders who served in the British or Australian Naval or Military Forces.

Second World War, 1939–45—Middle East Theatre: At 11 a.m. on 3rd September. 1939, Great Britain declared war on Germany. Within a few minutes after receipt of this information the New Zealand Government pledged its support.

In November, 1939, Major-General B. C. Freyberg was appointed to the command of the 2nd New Zealand Expeditionary Force, to consist of an Infantry Division with numerous auxiliary units and its own base and hospital services.

The Expeditionary Force left New Zealand in three Echelons, the First Echelon sailing on 5th January, 1940, and proceeding to Egypt. The Second Echelon was diverted to England in May, and the 2nd Division was first concentrated in Greece in March, 1941, a few days before the German invasion.

In the Greece Campaign the Division fought severe rearguard actions at the Servia Pass, Katerini Pass, Platamon, and Peneios Gorge. The campaign quickly ended, and on embarkation all guns and heavy equipment had to be destroyed and 1,876 men left as prisoners. The total casualties were: Killed (including died of wounds, sickness, accident, &c.) 266, wounded 371.

The 6th Brigade was evacuated to Egypt, 4th and 5th Brigades to Crete. General Freyberg took command of all the forces in Crete, which included 7,150 New Zealanders when the German airborne invasion began on 20th May. After a week of hard fighting, especially at Maleme and Galatos, the ill-equipped troops were forced to retreat across the mountains to Sphakia, where most were embarked. New Zealand casualties were: Killed 654, wounded 1,039, prisoners of war 2,205, including most of the severely wounded.

After reorganization and a period of training the Division took part in the campaign in Cyrenaica and the relief of Tobruk, in which it played a prominent part. Severe actions were fought at Sidi Rezegh, Belhamed, Capuzzo, and Gazala. The total casualties were: Killed 1,081, Mounded 1,699, prisoners of war 2,042, many of whom were wounded.

Early in 1942 the Division moved to Syria. It returned to Egypt by a notable move of 900 miles in the height of summer to meet the German invasion of Egypt after the fall of Tobruk. During the summer of 1942 it fought costly actions at Minqar Qaim, Ruweisat, El Mreir, and Alam Haifa, and made an important contribution to the defence of Egypt. Casualties amounted to: Killed 946, wounded 2,414, prisoners of war 1,909, again including many wounded.

On 23rd October it was one of the assaulting Divisions in the decisive battle of Alamein. It then took part in the pursuit to Tripoli, fighting several actions en route, in the defensive battle of Medenine, and in the subsequent advance to Tunis, fighting severe actions at Tebaga Gap and Takrouna-Enfidaville. The campaign in Africa ended on 13th May, 1943, with the surrender of all the Axis forces, and the Division returned to Egypt. Casualties in this phase were: Killed 923, wounded 2,824, prisoners of war 88.

In September, 1943, the Division moved to Italy and was constantly and heavily engaged until the end of the war. The most notable battles in which it took part were: Orsonga (Nov.-Dec., 1943), Cassino (Feb.-May, 1944), the advance to Florence (Jul.-Aug., 1944), Rimini (Oct.-Nov., 1944), Faenza (Dec., 1944), and the final Battle of the Senio and pursuit to Trieste (Apr.-May, 1945). The German armies in Italy surrendered on 2nd May, 1945. New Zealand casualties in Italy were: Killed, 2,084, missing 10, wounded 6,719, prisoners of war 225.

The Division was still under command of Lieutenant-General Sir Bernard Freyberg.

Total casualties in the 2nd New Zealand Expeditionary Force, Middle East and Pacific, were 6,793 deaths from all causes, 16,543 wounded, and 6,690 wounded and missing: total 30,026.

Pacific Theatre: A detachment of 2 officers and 30 other ranks occupied Fanning Island, to protect the cable station there, immediately on the outbreak of war and until relieved by United States troops in May, 1942.

The 8th Brigade Group was despatched to Fiji in November, 1940. It was reinforced by the 14th Brigade Group in January, 1942, and became the 3rd New Zealand Division, which was relieved by United States troops in July, 1942. New Zealand officers and non-commissioned officers trained, and to a large extent commanded, the three Fijian Battalions and two Commandos which had distinguished service with American troops in Bougainville and other Pacific islands.

One New Zealand battalion garrisoned Tonga and a second one, Norfolk Island.

The 3rd Division, under command of Major-General H. E. Barrowclough, moved to New Caledonia in November, 1942, and in August, 1943, to Guadalcanal. Under United States Command it carried out successful amphibious operations on Vella Lavella, the Treasury Islands, and Nissan. Owing to man-power difficulties it was withdrawn to New Zealand in 1944 and disbanded in October, the personnel returning to industry or going to the Middle East to reinforce the 2nd Division. Casualties in the Pacific operations were 111 killed in action, 213 wounded, and 26 taken prisoner.

Royal New Zealand Navy.—Second World War, 1939–45: H.M.N.Z.S. “Achilles,” a light cruiser, took part in the Battle of the River Plate, the first occasion on which the New Zealand ensign was flown in action.

“Achilles” was thereafter employed in patrol and escort duties in New Zealand waters and in the Pacific under United States command. She was severely hit by a bomb off Guadalcanal on 5th January, 1943, and sustained 21 casualties.

She was paid off at Portsmouth on 21st September, 1943, and recommissioned on 23rd May, 1944. In the last months of the war she served in the British Pacific Fleet and took part in several bombardments of Japanese island positions.

H.M.N.Z.S. “Leander,” a light cruiser, was employed on patrol and escort duties in New Zealand waters until May, 1940, when she sailed for the Middle East for escort duty in the Bed Sea. While operating in the Indian Ocean later she sank the Italian raider “Ramb I” after a short action. Between June and September, 1941, she took part in several actions off the Syrian coast. After Japan came into the war she was employed in the Pacific and in the Battle of Kolombangara on 13th July, 1943, was severely damaged, with 43 casualties.

H.M.N.Z.S. “Monowai,” armed merchant cruiser, was employed in patrol and escort duties in the Pacific and in New Zealand waters.

H.M.N.Z.S. “Gambia,” a light cruiser, was commissioned as a unit of the Royal New Zealand Navy by the officers and ship's company of the “Achilles” on 22nd September, 1943. After service in the North Atlantic she joined the British Eastern Fleet on 19th February, 1944, and took part in all the major operations of that Fleet and of the British Pacific Fleet. She was present at the signing of the Japanese surrender in Tokyo Bay.

25th Minesweeping Flotilla was organized in April, 1941. On 14th May, 1941, while the flotilla was clearing a minefield in the Hauraki Gulf, the “Puriri” struck a mine and was sunk with 5 casualties.

In December, 1942, this flotilla came under American command. On 29 30th January, 1943, the “Kiwi” and “Moa” sank a large Japanese submarine off Guadalcanal after a sharp action. The “Moa” was later sunk by air attack with 21 casualties. In August, 1943, the “Tui” took part in the sinking of another big submarine.

Forty minesweeping and anti-submarine vessels, 12 Fairmile launches, 16 harbour defence motor-launches, and about 100 other motor-boats served in the Royal New Zealand Navy in New Zealand waters, doing much arduous service.

New Zealanders in the Royal Navy: Approximately 7,000 New Zealanders served in the Royal Navy, the peak of 1,242 officers and 3,659 ratings being recorded in September, 1944. They saw service in every type of ship from battleships and aircraft carriers to submarines and motor torpedo-boats and took part in notable actions and operations in every theatre of war. Deaths totalled 458, the heaviest casualty list being 148 New Zealand ratings and two officers lost when the cruiser “Neptune” was sunk in the Mediterranean on 18/19th December, 1941.

Royal New Zealand Air Force.—Second World War, 1939–45: Until Japan came into the war the R.N.Z.A.F. was mainly concerned with escort and convoy duties in New Zealand waters and with training aircrews for service in the R.A.F.

Operational aircraft began to arrive from the United States in 1942, and eventually 26 squadrons were formed and saw service in the Pacific, under American command. They took part in offensive operations in the Solomons, on Bougainville, New Ireland, and against Rabaul, and carried out much supply dropping and convoy escort work and many anti-submarine patrols and survivor searches.

Ninety-nine enemy aircraft were shot down by R.N.Z.A.F. fighter squadrons and four by bomber squadrons. One submarine was sunk, many barges and small craft were destroyed, and 10,700 tons of bombs dropped.

Casualties in the R.N.Z.A.F. in the Pacific were 345 killed, 58 seriously injured, and 4 taken prisoner, 3 of whom died. In New Zealand 335 were killed, 100 died from natural causes, and 44 were injured.

New Zealanders in the Royal Air Force: Seven squadrons with a New Zealand identity and a majority of New Zealand personnel served with and as part of the Royal Air Force. They were 75 and 487 Bomber squadrons, 489 Torpedo Bomber squadron, 485, 486, and 488 Fighter squadrons, and 490 Flying-boat squadron.

All took part in very numerous operations and sustained and inflicted heavy losses.

The great majority of the 9,000 New Zealanders who served in the Royal Air Force were scattered in Royal Air Force squadrons, and there were some in every important operation carried out by the Royal Air Force. Their casualties were extremely heavy—3,267 killed, 128 seriously injured, and 571 taken prisoner. Of the 500 New Zealanders serving in the Royal Air Force on the outbreak of war in September, 1939, 327 were killed and 8 died while prisoners of war.

New Zealand Mercantile Marine.—Five New Zealand merchant ships were lost by enemy action—the “Awatea,” 13,482 tons; “Limerick,” 8,724 tons; “Hauraki” 7,113 tons; “Komata,” 3,900 tons; “Holmwood,” 546 tons.

110 seamen were killed and 123 interned.

POST-WAR ARMED FORCES EMPLOYED OVERSEAS.—A brief summary of forces raised after the termination of hostilities in the Second World War and employed overseas is now given.

New Zealand Contingent of the British Commonwealth Occupation Force in Japan.—After the capitulation of Japan in August, 1945, New Zealand agreed to join with the United Kingdom, India, and Australia in the despatch of a British Commonwealth Force to take part in the occupation of Japan. The objects of the British Commonwealth Occupation Force (B.C.O.F.) were to represent worthily the British Commonwealth in the occupation of Japan; to maintain and enhance British Commonwealth prestige and influence in the eyes of the Japanese; and to illustrate to, and impress on, the Japanese people, as far as was possible, the democratic way and purpose of life. The military role of B.C.O.F., under the direction of the Supreme Commander for the Allied Powers and within its allotted area, was: the safeguarding of all Allied installations, and of all Japanese installations awaiting demilitarization; the demilitarization and disposal of Japanese installations and armaments; and military control (which did not include military government).

The Army Component of the New Zealand Contingent was constituted as the Japan Section of the Second New Zealand Expeditionary Force. It was formed in Italy late in 1945, from the 9th Infantry Brigade and other units of the Second New Zealand Division, some 4,239 personnel being found from the single members of the 13th, 14th, and 15th Reinforcements, which were already in the Mediterranean theatre. The New Zealand Force sailed from Naples in February and arrived in Kure, Japan, on 19th March, 1946. Its allotted area of occupation included the Hiroshima Prefecture.

The original members of the Force were repatriated to New Zealand in July, 1946, their places being taken by volunteers from New Zealand who had enlisted for twelve months' service in Japan. In 1947 a further relief of personnel, enlistments again being on a voluntary basis, took place, and for reasons which included the diminishing nature of the military tasks connected with the occupation, the strength of the Force was reduced to 2,400.

Early in 1948, by agreement with the other Commonwealth Governments concerned and with the concurrence of the Government of the United States of America, the New Zealand Government decided to withdraw the Force, without relief, between July and October of that year.

The Air Component of the New Zealand Contingent comprised No. 14 (Fighter) Squadron R.N.Z.A.F. This Squadron, which initially comprised 33 officers and 239 other ranks, was formed on 1st December, 1945, and together with its Corsair aircraft was transported to Japan in March, 1946. In Japan it formed part of the British Commonwealth Air Group (B.C. AIR) and was stationed initially at Iwakuni and later at Bofu. Operational flying began early in May, 1946, and included surveillance patrols over the B.C.O.F. occupation area, searches for shipping bringing Koreans illicitly to Japan, and on occasion operational exercises with other units of B.C. AIR. The tour of duty for personnel was planned to be not more than one year, and reliefs were carried out progressively.

Air Courier Service: In addition to the provision of the Army and Air components of the New Zealand Contingent of B.C.O.F., an air courier service was maintained between New Zealand and Japan from March, 1946, to June, 1948. This service was undertaken by No. 41 Squadron, R.N.Z.A.F., and carried mail for the New Zealand Contingent together with freight and personnel for the relief of No. 14 Squadron. A number of Army personnel were also carried. Two alternative routes were used, the first being New Zealand, Norfolk Island, Australia, Sourabaya, Singapore, Saigon, Hong Kong Iwakuni; and the second. New Zealand, Norfolk Island, Australia, Morotai, Manila, Iwakuni. Each flight covered some 13,000 miles and involved about 90 hours flying-time. The weather en route ranged from tropical heat to winter snow, and there were dangerous stretches of ocean where typhoons and hurricanes were frequently met. There were no fatalities and no serious injuries to passengers or crew. Statistics of the service were: miles flown, 1,500,000; hours flown 9,000; passengers carried, 1,500; mail carried, 250,000 lb.; and freight carried, 125,000 lb.

New Zealand Armed Forces for Service in Korea.—As a result of an appeal from the Secretary-General, United Nations, for assistance in the operations in Korea, the Prime Minister announced on 29th June, 1950, that units of the Royal New Zealand Navy would be made available for service in that area. Two frigates, the H.M.N.Z.S. “Tutira” and H.M.N.Z.S. “Pukaki,” accordingly left New Zealand waters on the 3rd July, 1950.

As a result of a further appeal from the United Nations, for each member country to examine its capacity to provide more fighting forces, particularly ground troops, the Prime Minister announced on the 26th July, 1950, that New Zealand was offering to the United Nations, a special volunteer combat force for service with other ground forces in Korea.

Recruiting opened on the 27th July, and closed on the 5th August, 1950. The force, consisting of a regiment of artillery and ancillary units, entered camp in late August, 1950. A small advance party loft Wellington on the 24th November, and a further advance party, including the commander of K Force, Brigadier R. S. Park, left by air on 7th December, 1950. The main body left by the “Ormonde” on the 10th December, 1950.

Strengths of the Armed Services during the War and Post-war Years.—Approximately 60,000 men volunteered for service before conscription was introduced in July, 1940.

The net intake of men to the Armed Forces—i.e., exclusive of transfers between the Services and of re-entries—was 194,000, equivalent to 67 per cent. of the male population between the ages of eighteen and forty-five years. In addition, approximately 10,000 women served in the Forces.

The following table shows the approximate strength of each of the Services from the outbreak of war in September, 1939, at yearly intervals until March, 1948, and also in August, 1945, when hostilities ceased. The figures at July, 1942, are also shown, as that month marked the peak for mobilization, there being 151,073 men in the Armed Forces at that time, representing approximately 43 per cent. of the male population of military age.

As at 31st March,Navy.Army.Air Force.All Services.Total.Female Personnel (Included in Previous Columns).
In New Zealand.Overseas.
1939 (September)1,32018,0001,48620,39241420,806 
19401,79129,3003,80827,6287,27134,89918
19413,57975,14810,21354,99733,94388,940202
19425,605109,38918,22882,20151,021133,2222,356
1942 (July)6,110124,77323,666104,49050,059154,5493,476
19437,657104,08733,77782,74062,781145,5217,302
194410,01872,66241,59555,03969,236124,2757,942
194510,41246,69835,00442,73149,38392,1145,609
1945 (August)10,46640,94231,57836,96246,02482,9864,632
19464,52814,1296,91819,2146,36125,5751,838
19471,6327,1643,6577,4105,04312,453577
19481,6574,7462,8966,4652,8349,299435

NOTE.—The Navy figures do not include the Naval Auxiliary Patrol Service, while the Army figures similarly exclude the Home Guard.

The establishment of the Emergency Reserve Corps in August, 1940, consisting of (1) the Home Guard, (2) the Emergency Precautions Services, and (3) the Women's War Service Auxiliary, provided for the effective utilization of civilian personnel in the case of emergency. The Home Guard, which was constituted a part of the Defence Forces on 30th July, 1941, reached its peak in April, 1943, with a total strength of 124,194 men, while the total numbers involved in the Emergency Precautions Services at one stage reached 150,000.

The New Zealand Naval Auxiliary Patrol Service commenced operations in December, 1941, and attained its maximum strength of 463 ratings in August, 1942.

CASUALTIES ON ACTIVE SERVICE.—The following table gives particulars of casualties suffered on active service by members of the New Zealand Armed Forces and Mercantile Marine from the outbreak of war in September, 1939, up to 31st December, 1946. The figures shown for the Navy and Air Force include New Zealand personnel serving with the Royal Navy and Royal Air Force respectively. Deaths and injuries due to accidental causes while on active service are included in the figures of deaths and wounded respectively. The number shown as “missing” refers to the number so classified as at 31st December, 1946.

Deaths (Including Died as Prisoner of War.)Wounded and Injured.Prisoners of War.Wounded and taken Prisoner of War.Interned.Missing.Totals.
Navy57317054 3 800
Army6,79315,3246,6441,219 4630,026
Air Force4,1492555203223 4,979
Mercantile Marine110   123 233
Totals11,62515,7497,2181,2511494636,038

In addition to the above figures, there were 11 deaths reported in the 2nd N.Z.E.F. (Japan) up to 31st December, 1948.

HONOURS AND AWARDS.—A table showing, as far as available records permitted, the numbers of honours, decorations, &c. for distinguished or gallant conduct, devotion to duty, &c., which were awarded to New Zealand personnel serving with His Majesty's Forces from the outbreak of the 1939–45 war up to 31st December, 1946 will be found on page 201 of the 1947–49 issue, of the Year Book. Also shown were those honours and awards won by members of the New Zealand Mercantile Marine over the same period.

Chapter 9. SECTION 9—EXTERNAL TRADE

9 A—GENERAL

DATA regarding the overseas trade of New Zealand possess a special significance in view of the country's relatively high degree in dependence upon its external trade. According to the latest figures, New Zealand's total trade per caput is one of the highest in the world.

In the official annual statistics of the trade of New Zealand the twelve-monthly period adopted is the calendar year. Summarized trade statistics over a lengthy period of years are included in the Statistical Summary towards the end of this volume. The latest figures covering the principal items of export and import are published in the Monthly Abstract of Statistics, so that summarized figures are available for any twelve-monthly period ending in March, June, September, or December. As the farm production year ends about June and the financial year on 31st March, it is desirable to record trade for years ended 30th June and 31st March as well as for calendar years.

The following table relates to merchandise only—i.e., it excludes specie, particulars of which will be found on page 949. Up to the end of 1929 New Zealand currency and sterling were at virtual parity, but thenceforward New Zealand currency was at a discount with sterling up to 20th August, 1948, when it was restored to parity with sterling (see Section 29—Banking and Currency). Consequently figures of total merchandise trade have been converted to a sterling basis, and a summary covering the last twelve years follows.

Year.Year Ended 31st December.Year Ended 31st March.Year Ended 30th June.
Exports.Imports.Exports.Imports. Exports.Imports.

* Provisional.

† Not yet available.

 £(N.Z.)£(N.Z.)£(N.Z.)£(N.Z.)£(N.Z.)£(N.Z.)
193958,049,31649,387,18357,867,27954,408,44757,891,91156,499,607
194073,741,13348,997,66959,683,93845,571,77465,858,63646,070,033
194167,479,41349,167,01071,179,43047,918,22465,766,53046,184,967
194281,284,63753,856,01269,163,12150,589,65274,039,15151,377,986
194371,862,59895,242,33076,112,38360,967,78871,711,92971,958,098
194477,786,94686,397,21275,252,14895,849,75473,235,27497,490,448
1945*81,536,43155,072,92879,352,30781,611,31386,922,97367,734,502
1946*101,307,16571,634,11488,966,95556,987,88290,908,84462,646,851
1947*129,406,264128,724,841107,436,85581,795,677122,079,97791,022,710
1948*147,822,862128,200,692140,126,012138,390,294146,620,681146,926,568
1949*147,366,369119,713,138148,290,206119,101,015149,071,197110,158,303
1950*183,801,916155,029,255134,505,032162,900,726140,383,852
 £(Stg.)£(Stg.)£(Stg.)£(Stg.)£(Stg.)£(Stg.)
193946,439,00039,510,00046,415,00043,657,00046,381,00045,291,000
194058,993,00039,198,00047,747,00036,457,00052,687,00036,856,000
194153,984,00039,334,00056,944,00038,335,00052,613,00036,948,000
194265,028,00043,085,00055,330,00040,472,00059,231,00041,102,000
194357,499,00076,194,0060,890,00048,774,00057,370,00057,566,000
194462,230,00060,118,00060,202,00076,680,00058,588,00077,992,000
1945*65,229,00044,058,00063,482,00065,289,00069,538,00054,188,000
1946*81,046,00057,307,00071,174,00045,590,00072,727,00050,117,000
1947*103,525,000102,980,00085,949,00065,437,00097,664,00072,818,000
1948*125,377,000110,592,000112,101,000110,712,000117,297,000117,541,000
1949*147,366,000119,713,000134,821,000108,508,000144,928,000106,774,000
1950*183,802,000155,029,000134,505,000162,901,000140,384,000

TRADE PER HEAD.—The next table shows the total merchandise trade, exports, and imports per head of the population. Values are expressed in terms of New Zealand currency.

Year.Exports.Imports.Total Trade.
 £s.d£s.d.£s.d.

* Provisional.

193030202914059160
193123181710040118
19322365162103993
193326128161244350
193430103204050143
193529159234115308
19363607281116426
19374119235657757
193836683491070166
1939351211306665195
194045092918674193
194141763021171105
1942491163216118285
194343189584710234
19444619752379932
1945*48233291180122
1946*571054013598310
1947*711597182143311
1948*805569124149179
1949*7861063129141197

The year 1948 produced figures far in excess of those recorded for any previous trade year. The highest figure of total trade in the past was £102 3s. 4d. in 1943, but it should be remembered that included in the total for that year were heavy imports of a noncommercial character—munitions and war stores. The latter class of import did not figure largely in the 1948 trade accounts, the groat bulk of imports representing the record demand of purely commercial buyers. The 1949 figures showed a decrease in each category, but in 1950 exports rose to £95 13s. 8d. per head. As indicated earlier, the value of imports for 1950 was not available when this section was prepared.

VISIBLE BALANCE OF TRADE.—As a debtor country New Zealand has normally a substantial excess of exports over imports, imports having exceeded exports in only five (calendar) years since 1885—viz., in 1908, 1920, 1926, 1943, and 1944. The figures for the last twenty years—merchandise only—are as follows:—

Year.Visible Excess of Exports.

*Excess of Imports.

† Provisional.

‡ As from the 20th August, 1948, New Zealand currency was appreciated to parity with sterling.

 £(N.Z.)£(Stg.)
1930600,863677,000
19318,452,5477,695,000
193210,963,9139,967,000
193315,424,55312,340,000
193416,003,29512,803,000
193510,221,1148,210,000
193612,493,05410,035,000
193710,552,6848,476,000
19382,954,0942,373,000
19398,662,1336,929,000
194024,743,46419,795,000
194118,312,40314,650,000
194227,428,62521,943,000
1943−23,379,732*−8,704,000*
1944−8,610,266*−6,888,000*
194526,463,50321,171,000
194629,673,05123,739,000
1947681,423545,000
194819,622,17014,765,000
194927,653,23127,653,000

NOTE.—The 1942–45 figures include imports of lend-lease supplies which did not involve normal transactions in monetary exchange (being cancelled by reciprocal aid provided in New Zealand). To show the true balance of trade they should be eliminated, giving approximate export surpluses for the four years as follows (New Zealand currency): 1942, £38,000,000; 1943, £4,000,000; 1944, £13,000,000; 1945, £34,000,000.

It will be noticed that the balance for the year 1930 is greater on a sterling basis than on a New Zealand currency basis. The apparent anomaly is due to a combination of (1) successive movements in the exchange rate, and (2) the unequal distribution of exports over the year.

A pronounced fall in exports from the previous year's level was responsible for an import excess of £4,542,839 in 1926, and a similar movement accounted for the low excess of exports in 1930 and in 1938. The improvement in 1939 was effected by a reduction in imports under the policy of import selection and control which was inaugurated at the beginning of that year. Extremely large import totals, mainly as the result of the huge expansion of the importation of defence materials and supplies under lend-lease arrangements (which to a large extent invalidates comparisons with earlier years) were responsible for the excess of imports in 1943 and 1944. A substantial fall in imports of defence materials and lend-lease supplies and an increase in exports combined to produce the heavy balance in 1945. Although the values of imports in 1946 exceeded the 1945 total by £16,561,186 despite the cessation of imports of defence materials, a new record balance was achieved owing to the fact that the exports increased to an even greater extent.

The visible excess of exports, which reached the record level of £29,673,051 in 1946, fell away to the very small total of £681,423 in 1947, despite the large increase (28 per cent.) in the value of exports between 1946 and 1947. The explanation for this is to be found in the very considerable increase in the total value of imports, which was no less than 80 per cent. above the 1946 total. The 1948 and 1949 figures of the visible, excess of exports were of a high-order, the total for 1949 being second only to that shown for 1946.

The visible balance of trade—i.e., the excess of exports over imports or vice versa—is an essential record valuable for numerous purposes, but with very definite limitations.

In the first place, although this is not the most important factor, the trade statistics themselves contain inevitable errors. For example, it is necessary in many instances to assess the value of exports where goods are not sold until arrival at their destination; again, in the case of imports, an arbitrary assumption is made to cover freight, insurance, and handling charges. While errors arising from such sources do not appreciably affect items or totals of exports or imports, they may conceivably cause significant errors in the visible balance of trade, since there is no guarantee that such errors will be of a compensatory nature. In particular, when a small visible balance emerges from a year's trading in commodities, a relatively small margin of error in the assessment of export or import values (or both) may make a quite significant error in the residual balance. The possible error arising from the necessity of pre-estimating the final realization in the case of certain exports is not likely to be of importance in years of relatively stable prices; but in periods when world prices are changing rapidly, an appreciable margin of error may result from this cause in the assessment of the total of export valuations for a single year.

Furthermore, there are additional difficulties where trade with individual countries is concerned. The ultimate destination of goods exported is sometimes not known at the time of export. In particular, it is evident from the United Kingdom trade statistics that a considerable proportion of New Zealand's exports to continental countries in normal times is recorded in the New Zealand statistics among exports to the United Kingdom. Such produce may be sold on the United Kingdom markets to continental purchasers: while, again, goods may be diverted to continental markets after arrival in the United Kingdom.

Various factors arising out of the war further obscured the position in recent years particularly during the period that the Lend-Lease and the Canadian Mutual Aid Agreements were operating. In considering the 1942–45 balances, the effect of the inclusion in imports of lend-lease supplies should be noted. With the mutual cancellation of any obligations under lend-lease and reciprocal-aid arrangements as announced in the final settlement, it will be apparent that lend-lease imports were not the subject of ordinary transactions in monetary exchange, and their inclusion in imports conveys a false impression in so far as balances of payments are concerned. A further complication in this connection arose during the war period in connection with exports. Considerable quantities of foodstuffs and equipment were exported for the use of Allied Forces, &c., at the direction of the United Kingdom Government. In accordance with the general practice, such exports were credited to the country of final destination—e.g., Egypt, Algeria, Iraq, Italy, India, &c.—although the responsibility for payment rested with, the United Kingdom Government.

Of much greater importance is the fact that the visible trade is not the only factor to be taken into account in considering the balance of payments between countries. Debt payments, capital investments and flow of capital, freight payments, tourist expenditure, and the like, are vitally important factors which frequently reverse a credit visible balance of trade into a debit balance of payments. A statement of New Zealand's overseas receipts and payments is given later in this section.

The following table shows for the year 1949 the amount of merchandise exports to, and imports from, each of the principal countries trading with New Zealand. Exports are valued f.o.b. New Zealand ports, and imports at New Zealand import values—i.e current domestic value in country of shipment plus 10 per cent. allowance for freight, &c. The trade balances therefore represent the differences between exports and imports, both at New Zealand ports. This is the accepted practice internationally in statistics of trade, and it follows that New Zealand trade statistics will yield different results in respect of her trade with any given country than will be obtained from the trade statistics of that country, unless allowance be made for this practice.

TRADE BY COUNTRIES, 1949*

Country.Exports.Imports (by Country of Origin).
New Zealand Produce.Total.
 £(N.Z.)£(N.Z.)£(N.Z.)
United Kingdom107,638,562107,785,84865,998,926
Ceylon1,6901,7021,689,881
Republic of India883,422883,6523,055,755
Pakistan72,23972,23916,897
British Borneo2,9562,956948,801
Federation of Malaya289,003290,744899,392
British West Africa8,8888,888591,415
Union of South Africa126,995132,934476,802
British West Indies212,058212,058230,831
Canada2,193,1492,196,3524,635,840
Australia3,493,6933,753,42615,314,830
Fiji363,154522,946925,404
Western Samoa238,204287,671221,702
Other British Commonwealth countries431,304518,305604,444
  Totals, British Commonwealth countries115,955,317116,669,72195,610,920
Republic of Ireland133,769134,0268,060
Belgium1,817,6861,817,6901,853,205
France7,657,8997,657,899406,367
Germany (Western zone)2,992,2032,992,503339,899
Italy1,436,9181,439,177170,131
Netherlands2,438,4192,438,419282,689
Norway170,708170,708396,186
Poland1,203,5631,203,5669,745
Russia (U.S.S.R.)2,910,7242,910,73865,846
Switzerland253,514253,650367,473
Sweden447,335448,324667,049
Bahrein Islands9279271,512,898
Iran9,5729,5721,789,099
Japan780,737780,748353,523
Netherlands Antilles189,709189,70910
Indonesia4,0704,0702,314,350
Egypt249,476249,47612,076
United States of America5,478,7265,507,63811,023,623
Uruguay10,97710,977177,525
Tuamotu Archipelago37,99948,831651,027
Remaining countries1,917,5921,927,6391,701,437
Totals, other countries30,142,52330,196,28724,102,218
Ships' stores90,569500,361 
Totals, all countries146,188,409147,366,369119,713,138

* Provisional.

The progress of, and the trends in the direction of New Zealand's overseas trade, are illustrated by the accompanying diagram. Among the features portrayed are the extent to which New Zealand is dependent on the United Kingdom as a market for its exports, and the huge expansion that took place in commodity trade during 1947 to 1949.

BALANCE OF OVERSEAS PAYMENTS.—For many years the Census and Statistics Department prepared a statement of New Zealand's international balance of payments—that is, receipts from and payments to overseas countries. While reasonably accurate information was available for imports and exports, Government and local authority interest payments and debt movements, and miscellaneous Government receipts and payments, there were a number of important items for which it was necessary to make estimates, all more or less unsatisfactory. It was, for example, extremely difficult to estimate investments of private capital in New Zealand and the amount of outgoings by way of interest or dividends on such capital. Hardly more satisfactory was the position regarding tourist expenditure, both by tourists to New Zealand and by New Zealand tourists abroad. Altogether, the statement did not amount to anything more than a rough approximation.

Since the institution of exchange control in New Zealand, it is now possible through the Reserve Bank, which administers exchange control, to give a detailed statement of the foreign exchange transactions of the country.

The first table shows, in summary form, comparable figures relating to overseas receipts and payments for the last five years.

Year Ended 31st December,
1946.1947.1948.1949.1950.

*Includes £(N.Z.)22,721,000 payment under Memorandum of Security.

 £(N.Z.) (000)£(N.Z.) (000)£(N.Z.) (000)£(N.Z.) (000)£(N.Z.) (000)
Receipts
Exports112,054129,045145,270139,203194,786
Other receipts36,07935,47629,53819,53118,790
    Totals148,133161,521174,808158,734213,576
Payments
Imports, excluding payments in respect of Government imports60,118115,190108,189109,657140,816
Government debt and other services, including payments in respect of imports78,941*56,39846,57928,42628,444
Other payments15,63418,88125,23227,14029,861
    Totals154,693190,469180,000165,223199,121

NOTE.—An alteration in the exchange-rate to parity with sterling came into operation on the 20th August, 1948.

It is not practicable to give comparable figures in respect of the items listed prior to the 1950 year and those listed in that year owing to the adoption of a revised classification from October. 1949. In the following table, also drawn from Reserve Bank statistics, details are given for the 1950 calendar year, the items being in accordance with the revised classification. As in the preceding table, the figures cover New Zealand and island territories.

Items.Year Ended 31st December, 1950.
Receipts.Payments.Net Credit (4) or Debit (-).
Merchandise—£N.Z.(000)£N.Z.(000)£N.Z.(000)
Exports194,786  
Licensed imports 138,832 
Decontrolled imports 683 
Other imports 23,339 
    Totals, merchandise194,786162,854+31,932
Transport—   
  Freights, fares, ships' charters1,0182,516−1,498
Travel—   
  Private and business (exclusive of fares)1,2295,564−4,336
Insurance—   
  Insurance458639 
  Reinsurance 367 
    Totals, insurance4581,006−547
International investment income—   
  Interest, dividends, and other private investment income2,3354,718 
  Interest on Government and local authority loans 2,744 
    Totals, international investment income2,3357,462−5,127
Government transactions—   
  Current expenditure by New Zealand Government overseas 3,935 
  Current receipts by New Zealand Government and expenditure by other Governments in1,128  
  New Zealand   
    Totals, Government transactions1,1283,935−2,807
Miscellaneous current transactions—   
  Commissions, royalties, rebates, &c.8641,460 
  Films and entertainments 591 
  Unilateral transfers (migrants' transfers, personal remittances, charitable, legacies, &c.)4,9856,714 
  Expenses of business firms1,9181,326 
  Other current transactions510301 
    Totals, miscellaneous current transactions8,27710,391−2,114
Capital transfers—   
  Private3,3064,714 
  Government   
  Local authority 679 
    Totals, capital transfers3,3065,393−2,087
Unidentified1,040 +1,040
    Grand totals213,576199,121+ 14,455

INDEX NUMBERS OF VALUE AND VOLUME OF TRADE.—The table following facilitates appreciation of the movement of external trade in recent years, both in value and in physical volume. Volume of exports and effect of price changes upon exports are dealt with at greater length in the succeeding subsection.

INDEX NUMBERS OF VALUE AND VOLUME OF TRADE. Base: 1936–38 (= 100)

Year.Value.Volume.
On Gold Basis.On Sterling Basis.On New Zealand Currency Basis.Exports.Imports.Total Trade.
Exports.Imports.Exports.Imports.Exports.Imports.Total External Trade.

* Provisional.

1929187194113117919492759182
193014716989102748579778279
1931100886558585155785166
193279646654594754865070
1933765567496849591014977
193480627860786070986181
193576707770777074967285
1936948694859485901028996
1937110108110108110108109102106104
193895106961079610710197105100
193987879595969595989496
19401027912194122941091087995
194193791119411195104977085
1942112871341031341041201147495
19439915411818311918314996128111
194410713912816612816614699105102
1945*11188134106135106121956481
1946*1361131661371671381541127595
1947*174202213247214248229119115117
1948*211217258265244247245123114119
1949*234214303287243231237128117122

The statistics for the war years 1940–45 need careful interpretation owing to (a) the inclusion of lend-lease supplies in imports, (b) the fact that imports include defence materials and ordnance stores, which rose greatly in wartime, and (c) the supply of very large quantities of New Zealand produce to United States Forces in the Pacific under reverse lend-lease, such supplies not being recorded in the external trade statistics.

The total value of exports (on a New Zealand currency basis) in 1949 was more than twice that of the average of the pre-war years, 1936–38, while the aggregate value of imports was greater to the extent of 131 per cent. Although price changes have contributed materially to these record values of commodity trade, there have also been considerable increases in volume, particularly in regard to imports since 1947. Compared with 1936–38, the volume index of exports for 1949 shows an increase of 28 per cent. and the volume of imports an increase of 17 per cent., while compared with 1948 the latter has risen by 2.6 per cent.

IMPORT AND EXPORT CONTROL.—A decline in overseas assets commenced during 1936–37 and—allowing for seasonal fluctuations—continued steadily until 28th November, 1938, when the net overseas assets of the Reserve Bank and the trading banks were under £(N.Z.)8,000,000.

With a view to conserving overseas assets, so as to ensure that overseas debt services would be met and that sufficient funds would be available for essential imports, regulations—effective from 7th December, 1938, and known respectively as the Import Control Regulations 1938, and the Export Licences Regulations 1938—were made by Orders in Council of 5th December, 1938.

The Import Control Regulations prohibited the importation of goods except in pursuances of a licence under the regulations or of an exemption granted by the Minister. Under the Export Licences Regulations, goods (with certain minor-exceptions) could not be exported except under licence.

Three classes of export licences are provided for—viz., particular, general, and purchaser's. The particular licence applies to an occasional shipment; the general licence is issuable to exporters who make regular or frequent shipments; and the purchaser's licence is for cases where goods have been purchased for export by means of credits made available from overseas. A condition of the issue of any export licence is that the overseas credits arising from the sale of the goods (or used to finance their purchase) must be sold to a New Zealand bank in exchange for New Zealand currency.

In May, 1950, the Government made provision for the issue of “no-remittance” import licences authorizing the importation of goods of such classes as were deemed desirable on the grounds of relative essentiality and inadequacy of supplies to meet normal requirements. In addition, provision was made for applications to import goods, outside the licensing schedule and on a “no-remittance” basis, to be considered on their merits. Official overseas funds of banking institutions were in no case to be called on for the financing of “no-remittance” import licences, but provision was made for the transfer of private funds held overseas within the sterling area, such transfers to be made at the current rate of exchange.

The appointment of a representative Import Advisory Committee in May, 1950, for the purpose of examining the import-licensing system and recommending improvements in its administration, was followed in July by an announcement freeing some 326 import items, aggregating £45,000,000 in value, from licensing control, and removing certain other restrictions particularly in relation to soft-currency areas.

The Board of Trade Act of 1950 established a Board of Trade consisting of four members, to replace the temporary Import Advisory Committee and advise the Government on matters relating to industrial and trade development, import licensing and export licensing (except agricultural and pastoral products), tariffs and trade negotiations, the marketing and distribution of products, and the acquisition of raw materials and other goods for use in industry.

In December, 1950, the Government acting on the advice of the Board of Trade announced the freeing of a further 87 import items from licensing control in respect of soft-currency sources, and the basic allocations for 37 other import items of importance were substantially increased. The estimated aggregate value for 1951 of import items freed from licensing was thus brought up to £115,000,000.

The Minister of Industries and Commerce announced on the 4th April, 1951, that within the last sixteen months import restrictions had been lifted from 503 of the total of 998 items previously controlled.

Import items on which control is retained meantime are those predominantly of a type similar to local manufacture, and these are at present (April, 1951) under review. In addition, the Board of Trade is continuing its review of the import-licensing system, including imports from hard-currency areas, with a view to relaxing controls as much as possible.

MOVEMENT OF SPECIE.—Although there is a fairly considerable production of gold bullion, there is no Mint in New Zealand. Uncoined gold, therefore, ranks as an ordinary export, along with wool, dairy-produce, and other merchandise.

The following table shows exports and imports of specie stated at face value for each of the eleven years 1939–49. Very high figures were recorded in 1934, imports-amounting to £1,242,000, and exports to £2,283,900. This record export total was mainly due to gold shipments by the Reserve Bank. A further contributing factor, however, and also the main reason for the high imports of that year and the comparatively high figures of 1935, was the introduction of a distinctive coinage for use in New Zealand. The arrangements made for the withdrawal of British and Australian coins, which formerly constituted the metal currency of the country, and their replacement by the new issue are outlined in the Banking and Currency section of this Year-Book.

Year.Specie imported.Specie exported.Excess of Specie Imports (+) or Exports (—).

*Provisional.

 £££
193925,3642,795+22,569
194036,646 +36,646
1941205,40910,015+195,394
1942147,01025,375+121,635
1943461,8001,240+460,560
1944159,640400+159,240
1945*208,1484,400+203,748
1946*418,9704,532+414,438
1947*184,99010,375+174,615
1948*624,75555,169+569,586
1949*1,051,114570,220+480,894

GOVERNMENT CREDITS FOR FINANCING WOOL PURCHASES.—Financial agreements designed to facilitate the sale of New Zealand wool to France and Czechoslovakia were entered into by the New Zealand Government and the French and Czechoslovakian Governments—the former on the 2nd July, 1947, and the latter on the 22nd January, 1948.

The French agreement makes available to France a credit up to £5,000,000 sterling for use in the purchase of New-Zealand-grown wool during the five years ending 30th June, 1952. Other produce may also be brought under the scheme, if mutually agreed. Credit will be made available to the Government of France to the value of one-half of the cost of wool purchased by French buyers, the remaining one-half to be financed in the normal manner. The total advances are to be repaid not later than 31st December, 1957, and interest at the rate of 2½ per cent. per annum is payable.

The Czechoslovakian agreement makes available to Czechoslovakia a credit up to £1,000,000 in New Zealand currency for use in the purchase of New-Zealand-grown wool during the four years ending 30th June, 1951. Credit will be made available to the Government of Czechoslovakia to the value of one-half of the cost of the wool purchased by its buyers, with the proviso that the total credit drawn to the 30th June, 1948, is not to exceed £(N.Z.)250,000, to the 30th June, 1949, £(N.Z.)500,000, and to 30th June, 1950, £750,000. The total advances are to be repaid not later than 30th June, 1954, and interest at the rate of 2½ per cent. per annum is payable.

INTERNATIONAL TRADE CONFERENCE.—The Economic and Social Council of the United Nations, by a resolution dated 18th February, 1946, resolved to call an International Conference on Trade and Employment for the purpose of promoting the expansion of the production, exchange, and consumption of goods.

This Conference was ultimately held at Havana, Cuba, from 21st November, 1947, until 24th March, 1948, and a résumé of the main provisions of the Charter as finally drawn up at Havana is given on pages 210–212 of the 1947–49 issue of the Year-Book. This Charter has not, however, been ratified by any country.

At the second session of the Preparatory Committee (to prepare the ground for the International Conference) held in 1947 at Geneva, negotiations for a multilateral trade agreement embodying tariff concessions by the participating countries took place, and the resulting concessions are contained in schedules to the General Agreement on Tariffs and Trade (Geneva). Details of this as it affects New Zealand are given in Section 9D. “Customs Tariff and Revenue” of this Issue.

BULK PURCHASE OF PRIMARY PRODUCE BY UNITED KINGDOM GOVERNMENT.—The bulk purchase of New Zealand's primary produce by the United Kingdom Government originally commenced with the 1939–40 season's produce. It was a wartime measure whereby the United Kingdom Government became the sole purchaser of imported foodstuffs, and in New Zealand the Marketing Department became the authority for the bulk purchase and shipment of most of the produce concerned. The principal products which came within this hulk purchase plan were wool, butter, cheese, meat, tallow, and woolly sheepskins.

With the conclusion of the war, so ended the bulk purchase agreements for wool and sheep-skins, the sale of these products reverting to the open market. Dairy-produce and meat contracts, however, were continued under the bulk-purchase scheme as part of peacetime marketing, and in 1948 new agreements were signed in London extending these contracts up to 1955.

In the case of meat, Britain has agreed to take the whole of the country's exportable surplus for the next seven years to 1955. The one exception is pig-meat, the contract for which runs to 1952, after which the quantities will be the subject of review on two full years' notice. Increased prices were fixed for the 1948–49 season, those for subsequent years being the subject of an annual review with a maximum variation up or flown of 7½ per cent. in any one year. A new agreement was concluded during 1948 between the Government and the New Zealand Meat-producers Hoard, whereby the Board will assume responsibility for the handling of meat for export within the terms of the bulk purchase contracts with the United Kingdom Government.

As regards dairy-produce, butter and cheese were the subject of separate agreements, United Kingdom agreeing to take the exportable surplus of both products for the next seven years up to 1955. However, New Zealand had the right to reserve 3 per cent. of the 1948–49 season's surplus for sale at her own discretion. It was further agreed that quantity was to be the subject of review annually, and at any time if necessary, for the procurement of essential commodities from other countries. Like meat, prices for butter and cheese were fixed for the 1948–49 season by the agreement, those for subsequent years being the subject of an annual review, with a maximum variation up or down of 7½ per cent. in any one year. During 1947 the Government set up the Dairy Products Marketing Commission comprising Government members and members representing the dairy industry. The Commission was to take over all the functions of the Marketing Department in respect of butter and cheese sold on the local market or exported from New Zealand.

Tallow is, the subject of an annual agreement between the United Kingdom and New Zealand Governments.

A more detailed account of the above agreements will be found in Section 18A, “Agricultural and Pastoral Production.”

STERLING AREA TRADE ARRANGEMENTS WITH JAPAN.—The representatives of the Supreme Commander Allied Powers, acting in respect of occupied Japan and the representatives of five British Commonwealth countries, formally concluded an arrangement by which trade to the minimum value of £55,000,000 sterling would be carried on between these countries and occupied Japan from 1st July, 1948, to 30th June, 1949. The British Commonwealth participants were Australia, India, New Zealand, and the Union of South Africa, as well as the United Kingdom and its colonies, except Hone Kong.

The arrangement, which embraced trade through both Government and private channels, aimed at maintaining an approximate balance of exports and imports by the two countries in order to avoid dollar expenditure on either side. The arrangement provided that all trade between the two parties should be conducted on a sterling basis in accordance with the terms and provisions of the over-all sterling payments arrangement which was in force between the Supreme Commander and the sterling area.

The trade plan, which formed the basis of the arrangement, was not a hard-and-fast one and was not intended to constitute commitments binding on either party. It represented, in the light of the best information available to the two parties, the volume of trade which might be expected to flow between them and the character it was most likely to assume.

A further provision in the agreement specified frequent consultations between the parties to help in the smooth running of the plan and, in particular, provision was made for a general review not later than 15th January, 1949, with the purpose of preparing a trade plan for the subsequent year. Each party agreed to do everything feasible to ensure compliance with the export-import controls, exchange controls, and such other controls that related to international trade as might be in force, from time to time in the areas under the control of the other parties.

The main goods to be exported by occupied Japan under the arrangement were cotton textiles, which accounted for a minimum of over £16,000,000 of the total minimum estimated Japanese sales of some £27,500,000, industrial machinery and parts, raw silk, rolling-stock, caustic soda and other chemicals, rayon, wool and silk manufactures, paper and paper products, and bunker coal. The sterling area participants would furnish a wide range of raw materials and other goods and services to an approximate value of £23,000,000, including raw wool, iron ore, salt, raw cotton, cereals, petroleum, rubber, tin, jute, oil-seeds, wool waste, coal, hides and skins, manganese, gums and resins, and shipping. The balance of approximately £4,500,000 would be offset against a balance of goods already delivered to occupied Japan during the previous period on open account under governmental trading arrangements.

It was expected that New Zealand's sales to Japan would approximate £625,000 sterling and would include wool and possibly some hides and skins, casein, and seeds, while imports covering a similar amount might range over commodities such as essential classes of textiles, oak timber, and plywood.

A new trade agreement (to which New Zealand is a signatory) was negotiated between the United Kingdom and certain sterling-area countries and the Supreme Commander for the Allied Powers on behalf of Japan covering the year ending 30th June, 1951. It allows for a total trade of £185,200,000, compared with the total trade figure of £130,000,000 for the previous year.

9 B—EXPORTS

IN New Zealand the Department of H.M. Customs requires for every package exported a declared statement of the contents, value, and destination.

In all cases exports are valued “free on board at the port of shipment.” In cases where the goods are not sold till arrival at their destination, values must be assessed in New Zealand with reference to current prices. Exports of merchandise are valued in terms of New Zealand currency, which was below sterling parity from the beginning of 1930 to 19th August, 1948, when it was again restored to parity with sterling (see section on Banking and Currency). The value of total exports, 1939–50, in sterling will be found in the preceding subsection.

The ultimate destination of the goods is distinguished as far as is practicable, but it is impossible to discover what proportion of the exports is intended for home consumption in the country of destination. In the trade records a distinction is made between exports of New Zealand produce and re-exports of imported goods.

CLASSIFICATION OF EXPORTS.—The total merchandise exports (i.e., excluding specie) are given in broad classes in the following table covering the last eleven years.

Year.Food, Drink, and Tobacco.Raw Materials and Articles Mainly Unmanufactured.*Articles Wholly or Mainly Manufactured.Live Animals.Parcels Post.Total Merchandise Exports.

*Including uncoined gold and silver.

†Provisional.

 ££££££
193940,017,41517,058,535778,862136,91457,59058,049,316
194048,864,00223,735,893982,258118,26940,71173,741,133
194145,988,42520,565,014772,14161,05892,77567,479,413
194252,278,72127,331,8701,535,55916,736121,75181,284,637
194345,404,69522,034,6284,274,34116,114132,82071,862,598
194442,848,71721,667,13813,136,10735,45199,53377,786,946
194551,795,00021,406,0008,110,00086,000139,00081,536,000
194659,599,00037,521,0003,746,000152,000289,000101,307,000
194776,956,00048,564,0003,274,000272,000340,000129,406,000
194884,608,00057,585,0004,677,000241,000712,000147,823,000
194985,823,00057,143,0003,943,000181,000276,000147,366,000

Easily the most important class is that for food, drink, and tobacco, which, in the case of exports from New Zealand, is composed almost wholly of foodstuffs, the principal items being butter, cheese, and frozen meat. Of the total exports during the eleven years shown in the table, this class accounted for 61.1 per cent., but over the last four years it has fallen, amounting to approximately 58 per cent. in 1949. The only other class of any magnitude in normal times is that covering raw materials (mainly wool, hides, skins, seeds, tallow, and gold), which during the last eleven years constituted 34.2 per cent. of the total exports. In the last four years, however, this class registered a substantial increase, being approximately 39 per cent. of total exports in 1948 and 1949, owing mainly to the abnormally heavy shipments of wool, a considerable quantity of which was from held-over stocks stored in New Zealand as well as exports from the current season's clip. Prior to the outbreak of war, manufactured goods had not figured very prominently in New Zealand's exports, and during the three years 1937–39 accounted for only 1.2 per cent. of the total. However, during the five years 1942–46, this percentage rose to 8.4 mainly as a result of demands by the Armed Forces for certain manufactured articles including clothing and footwear, fire-fighting appliances, nails and tacks, hardware, concrete-mixers, electrical and wireless apparatus, cardboard, wallboard, leather, brushware, soap, and ordnance supplies. This last item war, by far the heaviest, exports for 1944 amounting to approximately £10,000,000 of which £5,000,000 were re-exports. In 1949 manufactured articles represented 2.7 per cent. of the total, but it should be remembered that included in this class are the bulk of New Zealand's re-exports.

The extent to which New Zealand relies upon the pastoral industry for her exports is indicated by the following figures showing exports of pastoral products and the percentage which they represent among total exports of New Zealand produce. The percentage supplied by this group was high in the late “nineties,” but after 1898 fell relatively, owing mainly to increased exports of agricultural and mining produce. From 1902 onwards, however, the percentage increased almost continuously, till in 1924 and 1925 it amounted to 94.2 per cent. of the total. The percentage dropped noticeably in the depression years, owing to the relatively greater fall in prices of pastoral products, particularly wool, but with the advent of improved prices recovery was made during subsequent years, the high percentage of 94.6 in 1940 being only exceeded by the 1949 percentage. The decline recorded in the aggregate value of pastoral products exported in 1941 was attributable mainly to shipping difficulties, the stocks of a number of items held in New Zealand at the end of that year being heavier than usual, and this factor contributed to the high total for 1942. During the next three years considerable quantities of meat and dairy-produce which would normally have been available for export, were supplied locally to the United States Forces, by way of reverse lend-lease. The approximate value of this produce, which was not treated as an export, even when subsequently shipped to the United States Forces in the Pacific, was: 1943, £7,000,000; 1944, £10,000,000; 1945, £8,000,000. As a consequence decreased quantities of most of the principal pastoral exports were recorded in 1943 and 1944, and this, together with the substantial increase in the export of manufactured articles mentioned earlier, and increased agricultural exports (notably peas and seeds), resulted in the proportion of pastoral exports to total exports falling to a level not experienced since 1913.

From 1945 to 1949 the value of pastoral produce exported has risen enormously, reaching a total of £138,863,000 in 1949, an increase of 144 per cent. as compared with the average of the three pre-war years 1937–39. The total value of pastoral produce exported in 1949 also represents a record percentage of 95 per cent. of the total value of exports of New Zealand produce. Heavy shipments of wool and butter in the past two years and of cheese and dried and condensed milk during 1949, plus increased export prices in general, have resulted in the large figures shown in 1948 and 1949. The 1950 provisional figure is £174,463,000, or 95.7 per cent. of the total.

EXPORTS OF PASTORAL PRODUCTS

Year.Value.Percentage.*

* Of total exports of New Zealand produce.

† Provisional.

 £ 
193041,369,40393.6
193132,114,90093.6
193232,112,46491.8
193337,110,70491.8
193443,350,62192.7
193542,646,99092.6
193652,685,82193.6
193762,549,32194.5
193854,298,64593.9
193953,743,68693.6
194069,057,11994.6
194162,237,56993.0
194274,361,08392.3
194361,029,21986.9
194458,948,11682.2
194568,112,00087.0
194689,582,00089.3
1947120,160,00094.1
1948137,738,00094.0
1949138,863,00095.0

In the first two decades of the present century exports of crops and orchard products were relatively insignificant; but from 1926 onwards there was a considerable development in the export of apples, pears, peas, and, to a lesser extent, grass- and clover-seeds, and tobacco. Owing to the available refrigerated shipping space being required for the more essential commodities, the export of apples and pears was practically discontinued during the war period, and it was not until 1948 that the export of these fruits was fully resumed. In recent years, the export of unmanufactured tobacco has practically ceased. The quantities of peas and grass- and clover-seeds exported has increased enormously since 1939, and under the stimulus of a wartime demand, a new commodity (linen-flax) achieved some importance. Over a long period of years kauri-gum was the principal item of the forest-produce group, but in later years exports of this commodity have been on a very much reduced scale. Timber exports, which fell to low levels during the depression period, recovered somewhat in 1934 and 1935, but in 1944 recorded then-lowest value for over sixty years. Since then there has been steady recovery and over the last two years, the quantities have been in advance of pre-war proportions. Mining products recorded a marked increase after 1931 due to the enhanced price of gold, which led to greater activity in the gold-mining industry, but war and post-war factors have resulted in an appreciable decline in the production of this metal since 1940.

Quantity figures of exports of the principal items of New Zealand produce are next given for the years 1939 and 1946–49. For some purposes, especially for comparisons between recent and more remote years, quantities are preferable to values, since the latter are affected by price-variations.

Commodity (New Zealand Produce).1939.1946.*1947.*1948.*1949.*

* Provisional.

† Ounces of the fineness of 20 carats and upwards. The values of principal exports are given in the following table.

The mine—     
  Coal (ton)43,99027,53628,03518,91321,575
  Pumice, sand and stone (ton)3,6812,5392,4101,7351,419
  Gold (oz.)176,370111,53198,55758,40063,854
  Scheelite (cwt.)760425325554560
  Silver (oz.)315,52671,517109,436147,1734,724
  Cement (cwt.)17010,38537,97839,31044,434
The fisheries—     
  Fish (cwt.)43,47335,80354,32666,72476,210
  Oysters (doz.)62,89985,4889501,0201,220
  Whale oil (gal.)116,258216,334206,685114,698111,094
The forest—     
  Kauri-gum (ton)2,3161,2381,2011,0891,046
  Timber, sawn and hewn (sup. ft.)13,172,3127,989,8989,493,04722,767,51724,592,400
Pastoral products—     
  Butter (cwt.)2,443,2972,035,8752,552,4672,712,3872,952,039
  Butterfat, dry (cwt.) 2171,700295992
  Casein (cwt.)38,51814,86051,83382,471109,204
  Cheese (cwt.)1,677,2571,514,9171,740,8791,512,4681,878,756
  Eggs in shell (doz.)12,5384,5425,5306,4108,625
  Honey (lb.)440,19967,14980,506197,096157,262
  Live sheep (number)14,7581,4562,510946321
  Canned meats (cwt.)71,617206,471142,917120,754111,473
  Meat extract (lb.)118,377666,739809,2021,200,0651,083,056
  Frozen and chilled meats (cwt.)5,906,2516,746,1676,955,6036,869,9446,882,023
  Milk, dried and condensed (lb.)24,545,70438,008,44544,753,71059,448,66577,033,426
  Sugar of milk (lb.)810,7801,337,6721,131,7761,532,7486,199,408
  Sausage-casings (cwt.)40,81348,32243,62947,08148,440
  Cattle-hides (number)528,157392,322472,972475,917327,766
  Calf-skins (number)1,103,182659,645757,186665,5221,121,657
  Opossum-skins (number)82,970392,596692,908270,374290,249
  Rabbit-skins (number)11,190,29415,755,93916,654,49613,471,29810,269,104
  Sheep skins and pelts (number)15,156,53615,479,23317,040,13817,157,29817,415,573
  Tallow (cwt.)582,740494,260514,500401,260508,633
  Lard and refined animal fats (cwt.)19,38520,01737,090177,24824,221
  Wool (lb.)277,391,713365,370,404375,093,061420,966,409429,657,252
Agricultural products—     
  Apples (lb.)37,980,56712,150,054230,71939,309,36021,357,099
  Pears (lb.)3,925,7602,9658,505894,6407,188
  Peas (cental)163,755318,478409,497459,816508,984
  Hops (lb.)114,54119040080,5201,070
  Oatmeal (lb.)5,1322,409,9755,505,6821,652,720795,100
  Onions (ton)5,0421,4541,2482,5491,644
  Potatoes (ton)1,1661,8861,8372,1971,980
  Seeds (grass and clover) (cwt.)45,829150,598147,011174,843161,992
  Linen-flax fibre and tow (cwt.) 12,54515,2445,4049,415
  Phormium fibre and tow (ton)1,59352  4
Miscellaneous—     
  Ale, stout, and cider (gal.)19,029252,630209,241213,871183,832
  Footwear (doz. prs.)15,8013,2921,363388
  Sugar (cwt.)19,7015,49411,3418,3717,137
  Metals, scrap (not precious) (cwt.)17,0205,732253,32948,06671,530
  Nails and tacks (cwt.)2102,3334,7451,1841,304
Commodity (New Zealand Produce).1939.1946.*1947.*1948.*1949.*

* Provisional.

The mine—£££££
  Coal59,97176,43377,43054,96371,659
  Pumice, sand and stone11,17212,19511,72010,18910,902
  Gold1,628,5261,184,7831,035,406609,259607,696
  Scheelite7,7284,7005,97514,23410,895
  Silver35,15913,94725,79436,4411,075
  Cement332,63210,43216,76716,837
The fisheries—     
  Fish162,430225,599358,241494,664519,309
  Oysters9752,819273062
  Whale oil12,99034,33348,76929,67030,430
Commodity (New Zealand Produce).1939.1946.*1947.*1948.*1949.*

* Provisional.

† Including items not enumerated.

 £££££
The forest—     
  Kauri-gum112,650111,915120,256109,802102,877
  Timber, sawn and hewn155,652162,354184,451508,949551,201
  Cardboard, wallboard, &c.10578,18114,88527,30341,161
Pastoral products—     
  Butter16,111,20719,841,45528,835,89833,758,18835,449,918
  Butterfat, dry 2,35622,0074,54118,245
  Casein69,26566,395370,549597,911600,740
  Cheese5,869,8908,448,32111,621,08811,197,02112,674,359
  Eggs in shell9005267408651,414
  Honey12,3762,5163,0537,3137,769
  Foods, infants' and invalids'18,25334,120128,541230,121226,978
  Live sheep64,95050,64564,37544,01118,309
  Canned meats318,5291,535,3121,147,237925,948848,738
  Live horses64,81791,811 176,440134,844
  Meat extract9,032135,766237,717296,938232,403
  Frozen and chilled meats15,390,80123,239,58529,353,33128,623,95527,229,684
  Milk, dried and condensed377,5061,198,2821,651,3962,209,8052,866,116
  Sugar of milk24,41360,39956,20276,556251,189
  Sausage-casings698,3171,393,0611,526,9242,238,2682,044,867
  Cattle-hides505,149938,1981,999,2281,976,9891,270,161
  Calf-skins275,974541,684917,866909,6071,069,400
  Opossum-skins24,386145,218145,73665,78977,581
  Rabbit-skins262,9041,451,3011,120,219754,651318,589
  Sheep skins and pelts1,460,0722,490,6736,014,1945,657,9203,855,629
  Tallow456,5271,063,1562,366,7422,154,2012,599,493
  Lard and refined animal fats22,50150,121210,4991,072,272132,463
  Wool11,665,90926,593,19831,933,08644,496,13046,553,151
Agricultural products—     
  Biscuits294167,46929,18822,28422,216
  Apples520,170153,3534,067851,587382,980
  Pears54,5345519322,040202
  Peas154,580662,256894,0751,023,0851,004,540
  Oatmeal3951,960114,58337,08119,999
  Hops6,818279010,628223
  Onions74,13229,78631,92645,61030,918
  Potatoes12,21426,59532,88839,56434,350
  Seeds (grass and clover)284,5141,942,0721,663,3651,700,6441,523,426
  Seeds (various)8,290147,191215,756144,459118,108
  Linen-flax fibre and tow 119,248140,26540,89082,085
  Phormium, fibre and tow25,2121,986  34
Miscellaneous—     
  Ale, stout, and cider4,46557,94548,39850,75241,966
  Dairying machinery35,33411,73059,92230,76564,389
  Fire-fighting appliances 153,6576,41412,73712,869
  Nails and tacks3556,95511,8034,6044,616
  Electrical apparatus2,565255,09475,201117,45970,389
  Wireless apparatus2,971122,4654,56211,5453,623
  Manures52,949112,3791,876413
  Metals, scrap (not precious)18,0424,10437,30617,75616,242
  Apparel and ready-made clothing382584,624181,1214,8192,936
  Leather3,53061,77167,94726,02830,343
  Footwear467,63726,3506,5221,862
  Soap5,533332,70231,48637,237137,423
  Sugar15,7439,56724,48219,39915,265
  Ordnance stores, explosives, &c.6,960110,470159,753133,69026,242
  Totals, New Zealand produce57,448,030100,333,311127,713,184146,469,226146,188,409

DESTINATION OF NEW ZEALAND EXPORTS.—The- first exports from New Zealand went naturally to the earlier-developed sister colony, and for a considerable time Australia had a monopoly of our trade. In 1865, 70 per cent., and even in 1871, 44 per cent., of the total exports wont to Australia. But since the establishment of direct shipping lines the United Kingdom has absorbed the bulk of New Zealand exports, having taken during the forty years 1875–1914, £365,880,997 (78 per cent.) of a grand total of exports amounting to £469,347,969. This percentage, prior to the war of 1914–18, did not vary greatly from year to year, but there have been considerable variations since 1914. In each of the three years 1915–17 approximately 80 per cent. of exports went to the United Kingdom, but there was a sudden drop to 64.1 per cent. in 1918. By 1921 the percentage had risen to 86.4, but a continuous decline then commenced, reaching a low point of 72.9 in 1928. Particularly high figures in this respect were recorded during the depression period, the peak being reached with 88.0 per cent. in 1932. From 1933 to 1937 the general trend was downwards, but the following year saw a sharp rise, with a further increase in 1940. The war years brought marked changes in the distribution of New Zealand's exports. The proportion sent to the United Kingdom fell steadily from 1940 to 1943, the fall in the latter year being particularly heavy. This was compensated for by appreciable increases in the export trade to Egypt, India and Pakistan, Canada, Russia (U.S.S.R.), and the United States of America. The year 1944 saw a substantial rise in the value of exports to the United Kingdom with a corresponding increase in the percentage, and this was maintained in 1945. A feature of the export trade in 1946 was the resumption of activities with European countries, notably France and Germany, and this resulted in a fall in the percentage exported to the United Kingdom despite an increase of £12,288,851 in value. The distribution of exports in 1947 was not dissimilar to that of the immediate pre-war years, the United Kingdom taking 77 per cent. of New Zealand's exports (80 per cent. in 1936–38), while exports to British Commonwealth countries accounted for 84 per cent. of total exports, as compared with 86 per cent. in 1936–38. With the return from the abnormal trading conditions that operated through the war years, exports to India and Pakistan have decreased substantially although still higher than pre-war figures.

Sharp declines in the proportion of exports to the United Kingdom and, in particular, to the British Commonwealth countries as a whole, were evident in the 1948 and 1949 figures, the latter group of countries receiving the lowest percentage of total New Zealand exports on record. The foreign countries chiefly responsible for the increases shown for other countries were France, Germany (Western Zone), and Russia, while the United States of America share showed a reduction in each of the two years mentioned.

It should be noted that exports to certain countries during the period 1940–45, particularly Egypt, Italy, and Algeria, and to a lesser extent India, consisted mainly of food, clothing, and munitions and war stores for the use of the Armed Forces. These supplies were exported on the requisition of, and paid for by, the United Kingdom Government.

The nomenclature used in the following tables in regard to the countries of destination refer generally to status and territories in the years indicated and not necessarily to the present position.

The principal destinations of New Zealand's exports of merchandise (including re-exports) during the last twenty years are given in the table below.

Year.United Kingdom.Canada.Australia.France.Germany.United States of America.Other Countries.*Total Merchandise Exports.

*Including ships scores.

† Provisional.

 ££££££££
193036,015,1282,539,2121,562,281519,727401,0842,116,7521,786,33344,940,517
193130,739,976256,8901,167,403419,016309,847920,9311,136,63534,950,698
193231,344,670244,1601,444,860508,960289,917690,0151,087,33735,009,919
193335,275,909560,8751,393,311738,176376,8861,188,9721,471,79041,005,919
193438,629,240697,8651,882,5161,228,699944,3101,250,3642,709,85347,342,847
193538,921,568656,9841,781,811484,610165,3042,468,0662,060,03846,538,381
193645,492,9891,103,0081,843,4751,646,168272,4812,877,7523,516,06756,751,940
193750,705,5911,678,4031,824,1831,014,941919,1484,784,0995,787,01466,713,379
193848,897,9901,127,1242,189,4541,015,456890,9761,421,6302,833,65358,376,283
193946,689,198963,7102,256,0071,579,176390,0062,847,1583,324,06158,049,316
194064,129,1061,709,1692,159,339716,752 2,825,8982,200,86973,741,133
194152,395,5382,822,3342,400,266  5,190,6134,670,66267,479,113
194260,471,0983,616,6462,717,619  5,990,0678,489,20781,284 637
194346,367,9404,535,2072,849,125  6,385,40211,724,92471,862,598
194455,426,5331,939,8143,092,981  5,062,60812,265,01077,786,946
194558,634,1072,230,9074,353,9779,776 7,949,0308,358,63481,536,431
194670,922,9582,803,2823,627,3233,465,3751,639,1299,715,7559,133,343101,307,165
194798,677,7773,059,6604,095,9814,447,17478,2948,174,45710,872,921129,406,264
1948107,922,3772,990,8143,955,9608,308,1892,724,8347,272,63914,648,049147,822,862
1949107,785,8482,196,3523,753,4267,657,8992,993,5035,507,63817,471,703147,366,369

The principal “Other Countries” for the last five years are given in the following table.

Year.Egypt.Republic of India, and Pakistan.Russia (U.S.S.R.)Italy.Belgium.Netherlands.Other, including Ships' Stores.Total.

* Provisional.

 ££££££££
1945*2,540,7422,937,757 616,3312,9303472,260,5278,358,031
1946*420,7353,085,91910,560297,412472,256497,5184,348,9439,133,343
1947*201,110491,387504,607665,5901,991,0101,717,4095,301,80810,872,921
1948*199,545791,9822,544,382753,1111,496,2942,838,8916,023,84414,648,049
1949*249,476955,8912,910,7381,439,1771,817,6902,438,4197,660,31217,471,703

The statistics quoted in the foregoing table indicate the destination of New Zealand exports as recorded by the Customs Department. In some instances the ultimate destination of exports is not known at the time of export, such goods being entered as exported to the country to which they are being shipped. This consideration applies more particularly to wool, considerable quantities of which are shipped to the United Kingdom, and, in normal times, subsequently re-exported to the Continent. It should be observed, however, that in all instances where the final destination is known at the time of export the exports are credited to that destination in the New Zealand trade statistics. It is possible, of course, that the destination of goods may be changed while in transit; and this, in fact, happens occasionally in the case of wool. In such cases the actual destination will be different from that to which the goods have been credited in the statistics; but it is quite impossible to keep a record of movements of this nature.

A further point of some importance is the fact that an appreciable quantity of wool is exported on an “optional” basis—United Kingdom, option Continent. In these cases, however, subsequent information is received by the Customs Department as to the actual destination of the goods, and the entries are amended.

It will be realized from the considerations outlined above that the actual final destinations of New Zealand exports may vary appreciably from the classification shown in the table. For these reasons it is probable that our exports to Continental countries are normally somewhat higher than the figures indicate; conversely, our exports to the United Kingdom for retention in that country are lower than the totals quoted in the table.

The table which follows shows for each of eleven years the percentage of total exports (excluding specie, and ships' stores), taken by each of the principal countries trading with New Zealand.

Country.1939.1940.1941.1942.1943.1944.1945.1945*1947.*1948.*1949.*

* Provisional

 Per Cent.Per Cent.Per Cent.Per Cent.Per Cent.Per Cent.Per Cent.Per Cent.Per Cent.Per Cent.Per Cent.
United Kingdom80.9987.6078.1574.9764.8871.7572.3670.3576.6673.3073.39
Republic of India Pakistan0.251.061.551.283.595.273.633.060.380.540.65
Union of South Africa0.100.030.040.020.040.060.230.060.050.060.09
Canada1.672.344.214.486.352.512.752.782.382.031.50
Australia3.912.953.583.373.994.005.373.603.182.692.56
Fiji0.250.260.260.470.780.460.480.310.340.280.36
Other British Commonwealth countries0.550.450.630.490.720.841.031.641.191.000.89
  Totals, British Commonwealth countries87.7294.6988.4285.0880.3584.8985.8581.8084.1879.9079.44
Netherlands0.46      0.491.331.931.66
Belgium1.52      0.471.551.021.24
France2.740.98     3.443.455.645.21
Germany0.68      1.630.061.852.04
Italy     1.150.760.300.520.510.98
Russia (U.S.S.R.)  0.992.431.28  0.010.391.731.98
Egypt0.060.092.204.478.906.843.140.420.160.140.17
Japan0.680.110.07      0 030.53
United States of America4.943.867.747.438.936.559.819.646.354.943.75
Remaining countries1.200.270.580.590.540.570.441.802.012.313.00
  Totals, other countries12.285.3111.5814.9219.6515.1114.1518.2015.8220.1020.56

Exports to each country, 1939 and 1946–49.—The table following shows the exports (including re-exports, but excluding specie) according to the countries of destination. Reference should be made to remarks made earlier regarding re-exports of New Zealand produce from the United Kingdom.

Country.1939.1946.*1947.*1948.*1949.*

* Provisional.

British Commonwealth of Nations, Protected States, and Trust Territories£££££
United Kingdom46,689,19870,922,95898,677,777107,922,377107,785,848
Europe—     
  Eire114100,61558,85193,950 
  Gibraltar   3,160 
  Malta3674615,2706,198
  117101,28958,912102,3809,198
Asia—     
  Aden  1,3666081,451
  British Borneo27485981202,956
  Burma1,70676,753136,604  
  Ceylon241174,66062,35437,4581,702
  Hong Kong24,458185,462118,955121,380173,166
  Republic of India145,5483,085,919491,387791,982883,652
  Pakistan    72,239
  Federation of Malaya111,006587,166318,455297,780290,744
  Colony of Singapore     
  Palestine395,82017,71315,573 
  Other625,0116,343365170
 282,9954,230,8391,153,7751,265,2661,426,080
Africa—     
  Union of South Africa60,09558,77665,06489,103132,934
  Kenya and Uganda6185991,5919,8954,069
  Other3151,77713,69917,10011,492
  61,02861,15280,354116,098148,495
America—     
  Bermuda  11,20058,52548,425
  British West Indies52,85043,274133,598237,778212,058
  Canada963,7102,803,2823,059,6602,990,8142,196,352
  Other1649,4911,9061,9192,049
  1,016,7242,856,0473,206,3643,289,0362,458,884
Pacific—     
  Australia2,256,0073,627,3234,095,9813,955,9603,753,426
  Fiji143,098307,736441,099413,974522,946
  Gilbert and Ellice Islands5,99022,65079,99040,63644,068
  Nauru Island5,23727,55565,55653,00151,260
  Norfolk Island3892,17216,7144,85428,992
  Papua6,1091473,76412,58526,602
  Solomon Islands3173,8705,4074,43115,572
  Tonga23,22889,005110,783139,522107,546
  Western Samoa75,511209,087349,348320,183287,671
  Other3,3201,0421,0141,7243,133
 2,519,2064,290,5875,169,6564,946,8704,841,216
Other Countries     
Europe—     
  Austria  14,94731,844160,538
  Belgium874,620472,2561,991,0101,496,2941,817,690
  Czechoslovakia20,12932,0398,603103,82962,901
  Denmark46,726250,245451,547512,400446,169
  Republic of Ireland    134,026
  Finland5,11110,26144,09556,36714,232
  France1,579,1763,465,3754,447,1748,308,1897,657,899
  Germany390,0061,639,12978,2942,724,8342,993,503
  Greece35,11986,807106,176111,473211,637
  Italy1,565297,412665,590753,1111,439,177
  Netherlands266,278497,5181,717,4092,838,8912,438,419
  Norway91672,51473,44659,771170,708
  Poland86,71214,47283,184208,1701,203,566
  Portugal17,6729,85215,3987,284 
  Russia (U.S.S.R.) 10,560504,6072,544,3822,916,738
  Spain 356,795  9,587
  Sweden176,713278,174342,142670,249448,324
  Switzerland2,19472,877274,960253,524253,650
  Yugoslavia1,014161,14516,85461,629104,397
  Other17,4855,70612,26447,12982,185
  3,521,4361,733,13710,847,70020,789,37022,559,346
Asia—     
  Burma   102,00452,046
  China69,63992,881207,77912,37813,007
  French Indo-China5,697 22,00941,425 
  Israel    60,031
  Japan390,7832,41656,62746,575780,748
  Indonesia7,82317,499130,4895,2934,070
  Philippines12,512 99,36035,18894,081
  Siam5,725 7,1646,72216,942
  Turkey 44,98328,02497,44211,568
  Other13116,3908,49512,205113,010
  492,310204,169559,947359,2321,145,503
Africa—     
  Belgian Congo   7,05020,710
  Egypt34,356420,735201,110199,545249,476
  Morocco 15,892162,923169,26652,025
  Other7007781,0844,9355,765
  35,056437,405365,117380,796327,976
America—     
  Argentina3,59320,86138,53421,52445
  Brazil9,3611,9945 961
  Chile457,90645094017,615
  Mexico3865,2739645,63510,555
  Netherlands Antilles  28,860135,350189,709
  Panama  10101,02460,216
  Panama Canal Zone67,02722479,75163,958
  United States of America2,847,1589,715,7558,174,4577,272,6395,507,638
  Uruguay1,8657,44521,87512,50810,977
  Other1,716134371,99118,901
  2,931,1519,759,5928,265,1657,631,3625,880,575
Pacific—     
  Hawaii55,82210,3338433,01141,819
  New Caledonia68214,25526,66018,2621,749
  Society Islands29,36471,113199,765219,98686,233
  Tuamotu Archipelago 52,46450,64452,53348,831
  American Samoa14,74267,44573,59593,52373,526
  Other521,1261,8104,62130,729
  100,662216,736352,558421,936282,887
  Ships' stores399,433493,254668,939598,139500,361

Destination of Main Exports.—The table which follows shows quantities of the principal exports of New Zealand produce sent to various destinations during the years 1939, 1948, and 1949, and, in addition, total value figures are given, together with the values for individual countries for 1948 and 1949.

Country to Which Exported.1939.1948.*1949.*
Quantity.Value.Quantity.Value.

* Provisional.

Wool
 lb.lb.£lb.£
United Kingdom154,959,078221,617,99321,193,630215,623,05021,816,892
Union of South Africa33,12726,4302,973628,13273,810
Republic of India186,5032,408,363259,1752,806,869322,789
Pakistan     
Canada8,477,32416,065,3411,880 50014,260,5631,636,238
Australia14,644,2066,791,378619,5356,594,415676,831
Republic of Ireland 29,6174,017431,00742,224
Norway10,173397,79059,669996,007150,651
Sweden3,224,4953,486,119536,5782,381,117346,601
Denmark812,0093,061,482138,1143,138,344413,278
Finland25,523189,21332,48227,0784,117
Russia (U.S.S.R.) 19,420,3832,544,33724,032,4852,910,724
Poland2,007,928622,32877,7055,991,883904,172
Germany5,545,10017,805,0942,350,37522,752,4962,620,795
Netherlands5,134,56216,781,6561,850,01911,731,9441,326,326
Belgium17,974,1388,475,577986,97712,361,9721,502,421
France37,574,44267,731,2217,807,76267,980,3597,455,669
Switzerland 1,586,830195,33041,1724,490
Italy35,8452,849,547405,4297,318,2861,113,809
Czechoslovakia546,713848,36788,542583,50762,671
Hungary 85,17112,213  
Yugoslavia22,018253,65841,827566,51672,560
Bulgaria341,468177,40330,493432,91864,027
Greece843,455475,33283,6591,133,117177,999
Morocco 1,458,482169,260442,06952,018
Egypt634,910731,08380,851821,32184,514
China1,231,55862,46911,18858,6937,800
Japan8,312,59199,83316,2755,674,340661,473
United States of America14,428,14927,371,9502,708,18720,617,7452,019,904
Other countries386,39856,2999,028229,84728,348
    Totals277,391,713420,966,40944,496,130429,657,25246,553,151
Frozen and Chilled Meal
 Cwt.Cwt.£Cwt.£
United Kingdom5,876,2426,830,59228,444,3316,831,31626,996,698
Bermuda 2,88418,391  
British West Indies1355,54125,5164,48520,349
Fiji5744,84319,9669,27033,507
Gilbert and Ellice Islands493751,8382611,663
Tonga848132,7621,1934,368
Western Samoa3242,4858,6102,0978,439
Nauru Island872551,3054122,344
Belgium 7124,1503,57516,004
Netherlands Antilles11719,87288,17726,677133,048
Society Islands16  6472,625
Tuamotu Archipelago 2651,527177921
American Samoa2721,2086,8551,8289,369
Other countries (including ships' stores)28,3519952785349
    Totals5,906,2516,869,94428,623,9556,882,02327,229,684
Canned Meat
 Cwt.Cwt.£Cwt.£
United Kingdom53,75271,582541,41959,264455,526
British West Indies51,51411,8191241,313
Western Samoa3,11411,02277,44312,76794,050
Fiji3,8516,60852,4507,14058,219
Tonga1,3644,02129,9793,26325,376
Gilbert and Ellice Islands1,5851,90712,8411,60412,383
Italy   7,90955,861
Israel Palestine (excluding Israel)   2,94916,283
New Hebrides 755731,94015,211
Society Islands3,89312,093103,0236,88654,957
Tuamotu Archipelago 1,98816,3127415,766
American Samoa2,0917,50256,5535,27039,376
Other countries1,9622,44223,5361,61614,417
    Totals71,617120,754925,948111,473848,738
Butter
 Cwt.Cwt.£Cwt.£
United Kingdom2,391,5122,644,77632,767,2932,882,24134,452,128
Hong Kong2,9871,30218,8185798,259
Republic of India4,9614,58661,72310,567175,513
Pakistan     
Federation of Malaya6,5634105,1521,80022,939
Colony of Singapore     
Bermuda 1,49119,2493,99947,388
British West Indies7,76511,296139,1429,926123,297
Canada50022,000300,816  
Switzerland 4,00052,10020,000239,251
Netherlands Antilles151,96227,6462,31236,092
Panama 4,00096,2093,69360,039
Panama Canal Zone9,925  2,75259,946
Philippine Islands1,7751,11715,1684,05363,123
Burma1181,04917,0901,23823,888
Hawaii5,9761,54029,1051,81735,548
Society Islands3974,03566,9313675,851
Other countries10,8038,823141,7466,69596,656
    Totals2,443,2972,712,38733,758,1882,952,03935,449,918
Cheese
 Cwt.Cwt.£Cwt.£
United Kingdom1,676,3201,503,66411,125,1541,826,20412,223,279
Union of South Africa   1,67313,278
Republic of India877256196810,124
Pakistan     
British West Indies58201463,40727,199
Western Samoa4456402100787
Fiji3252311,7445013,964
Norway   9976,615
Germany   16,001139,418
Belgium 8,34568,4138,47156,255
Egypt   11,21193,189
Panama Canal Zone   4463,917
Other countries423806048,77796,334
    Totals1,677,2571,512,46811,197,0241,878,75612,674,359
Milk (Dried, Condensed &c.)
 lb.lb.£lb.£
United Kingdom20,477,38437,991,4991,423,90755,759,4532,031,867
Republic of India315,7664,984,064199,5437,006,235268,753
Pakistan10,080782,81629,30622,624924
Ceylon     
Federation of Malaya3,104,3025,835,378201,8366,129,984236,904
Colony of Singapore     
Hong Kong41,610903,34431,770487,04017,674
British West Indies18,632573,60022,280602,56023,356
Australia88,156572,52016,769281,27410,268
Fiji7,195222,57210,248216,56311,509
Netherlands 568,96023,128299,39218,389
Belgium 365,12014,302682,25031,048
Italy   800,00028,604
Egypt 1,512,89654,950300,66812,600
Israel     
Palestine (excluding Israel) 519,88815,552812,11737,019
Syria 40,5861,444289,60010,994
Kuwait, Muscat, and Oman   585,50021,887
Slam 72,0003,024440,92816,650
Burma1,1202,328,64079,441856,64428,134
Society Islands224,264274,24010,903116,1604,656
Other countries257,1951,900,54271,4021,344,43454,880
    Totals24,545,70459,448,6652,209,80577,033,4262,866,116
Tallow
 Ton.Ton.£Ton.£
United Kingdom19,74119,7152,112,88225,3222,588,086
Republic of India4,8158010,400  
Pakistan     
Canada555    
Fiji212809,21011011,405
Belgium336    
Germany1,740    
Netherlands411    
British West Indies3018821,709  
United States of America566    
Other countries731   2
    Totals29,13720,0632,154,20125,4322,599,493
Cattle-hides
 Number.Number.£Number.£
United Kingdom95,497172,481714,88418,65953,602
Australia91,69317,45850,9107,75723,430
Sweden8547,40030,4188082,730
Finland3,7925,21817,205  
Poland1,00027,120123,36264,175296,246
Germany18,63813,36547,47420,88387,910
Netherlands3,400110,482455,523122,393454,647
Belgium70,40616,26361,7077073,655
France21,67421,94285,8412,82510,182
Italy 52,261251,82419,76369,783
Austria 2,3508,16639,492145,243
Bulgaria   3,32817,984
Turkey 21,28397,4421,7225,189
Japan3,3434,24913,34220,90882,629
Other countries217,8604,04518,8914,34616,931
    Totals528,157475,9171,976,989327,7661,270,161
Calf-skins
 Number.Number.£Number.£
United Kingdom95,183101,675120,213406,355386,805
Canada191,517130,604201,06036,00045,512
Australia25,46711,17213,6991,9461,714
Netherlands26,869183,489232,479409,216380,128
France 4,8858,60010,10512,355
Italy 60,20779,22181,67065,680
United States of America733,946171,330251,387153,910156,281
Other countries30,2002,1602,94822,45520,925
    Totals1,103,182665,522909,6071,121,6571,069,400
Rabbit-skins
 Number.Number.£Number.£
United Kingdom450,2632,049,691128,6492,433,67685,469
Canada29,940182,96425,694143,13910,641
Australia1,409,37517,5372,39085,9063,054
Netherlands 1,163,53069,606167,6404,414
Belgium201,97177,1235,126166,3686,761
France88,356288,65429,422141,9609,662
United States of America8,991,9509,623,504489,6926,699,130184,647
Other countries18,43968,2954,072431,28513,941
    Totals11,190,29413,471,298754,65110,269,104318,589
Sheep-skins (with Wool)
 Number.Number.£Number.£
United Kingdom500,433441,339333,749356,575185,829
Canada178,6218,3764,83721,68012,127
Australia18,61510,7504,0311,906592
Belgium11,88634,91231,80434,06220,643
France604,145325,995173,152255,84471,209
Germany65,4442,7751,8156,8025,091
Netherlands22,02214,4336,89711,6323,560
Italy 4,5652,29518,4337,129
United States of America531,50625,42521,16788,39864,170
Other countries   160122
    Totals1,932,672868,570579,747795,492370,472
Sheep-skins (without Wool)
 Number.Number.£Number.£
United Kingdom2,404,0834,356,6221,473,1353,595,016829,767
Canada91,31869,78610,325446,48673,832
Australia270,063210,57345,625160,23222,409
Sweden 269,01691,132304,53371,789
Denmark 49,74011,78325,2063,795
Belgium624,451358,032131,975134,99037,343
France39,565217,07576,497164,29850,343
Netherlands12,610379,051136,239422,003105,039
Japan78,28848,32416,891121,39331,517
United States of America9,698,86810,330,4893,084,56111,222,2762,252,442
Other countries4,618201023,6486,881
    Totals13,223,86416,288,7285,078,17316,620,0813,485,157
Sausage-casings
 lb.lb.£lb.£
United Kingdom1,728,0543,054,9881,373,5493,679,1511,530,961
Canada1,362,9281,112,722447,148838,941295,840
Australia149,666266,35827,662489,99838,610
Denmark 51,39122,50039,89720,948
Belgium 16,69610,48557,30930,946
United States of America1,330,021769,720356,420261,543100,897
Other countries1,5211,23450458,41226,665
    Totals4,572,1905,273,1092,238,2685,425,2512,044,867
Peas (Unprepared)
 Cental.Cental.£Cental.£
United Kingdom98,763349,064761,616443,040852,778
Union of South Africa6,4884,60210,8696081,394
Australia47,35447,775122,76941,074109,956
Fiji 5681,2101,5642,691
Republic of Ireland 6301,1929092,629
Denmark 1053205041,376
Germany1,14824,53272,466  
Belgium4,75427,35541,5726,2659,665
France 1,0163,601  
Egypt   10,47516,764
United States of America4,1134,1547,4443,9706,062
Other countries1,13515265751,225
    Totals163,755459,8161,023,085508,9841,004,540
Apples (Fresh)
 lb.lb.£lb.£
United Kingdom24,814,52038,964,600844,20616,995,888299,342
Canada2,354,520  1,183,24022,186
Fiji136,132274,4205,804312,4415,755
Western Samoa13,90942,76097248,5241,104
Belgium   1,668,00031,535
France2,076,720    
Germany4,232,120    
Netherlands1,519,640    
Sweden.1,902,840    
United States of America   1,117,56022,351
Brazil680,000    
Other countries252,87327,58060531,446707
    Totals37,983,27439,309,360851,58721,357,099382,980
Seeds (Grass and Clover)
 Cwt.Cwt.£Cwt.£
United Kingdom12,14084,953924,16356,860556,844
Union of South Africa6696623,1472341,559
Canada1,5642,70226,4124,04354,853
Australia19,22519,208135,35732,554222,197
Republic of Ireland 9,49373,0536,40175,292
Denmark1511,60429,3711843,809
Germany2317,799223,7127,49067,876
Belgium4016,517101,4958,42441,988
France 12,09388,5304,90828,778
Netherlands4454,90350,9857,72390,719
United States of America11,4863,83833,53732,416373,148
Other countries861,07110,8827556,363
    Totals45,829174,8431,700,644161,9921,523,426
Timber (Sawn and Hewn)
 Sup. ft.Sup. ft.£Sup. ft.£
United Kingdom136,9322,2911104,509208
Australia11,824,38821,886,656483,73523, 898,499535,467
Fiji20,002155,9254,613  
Nauru Island3,053  5,288179
Tonga159,072100,3432,656103,8342,982
Western Samoa1,067,901595,47317,598449,51211,213
New Hebrides   101,8213,649
Other countries123,33226,82923728,9371,045
    Totals13,334,68022,767,517508,94924,592,400554,743

EXPORTS FOR YEARS ENDED 30th JUNE.—As indicated elsewhere in this section (page 952) farm products account for an extremely high proportion of exports from New Zealand. The farm-production export season fits much more closely to a June year than to a calendar year. The flush of the dairy-production season is spread over the months of October to March, while the whole harvest season, and most of the wool-selling season, occur in the early months of the calendar year. By 30th June, in normal times, the great bulk of the season's farm-produce destined for export is shipped, except held-over wool and a certain amount of dairy-produce and frozen meat kept in cool store to equalize shipments. It is desirable, therefore, for some purposes to tabulate New Zealand exports for years ending in June instead of December, a desideratum which, it may be observed, applies to most countries in the Southern Hemisphere.

EXPORTS OF NEW ZEALAND PRODUCE (QUANTITIES) FOR YEARS ENDED 30TH JUNE

Commodity.1945–46.*1946–47.*1947–48.*1948–49.*1949–50.*

* Provisional.

Butter cwt.2,110,5712,354,9902,541,0992,948,9202,963,530
Butterfat, dry cwt430  1825,676
Casein cwt.14,30043,41875,802101,09795,987
Cheese cwt.1,568,5081,766,2381,664,5211,667,1821,793,771
Fish cwt.32,73148,80560,34369,22280,397
Honey lb.173,83869,63590,130180,860478,072
Beef, frozen cwt.856,8451,094,0121,259,5971,099,7381,064,345
Lamb, frozen cwt.3,235,5283,482,9333,714,0863,980,6683,281,193
Mutton, frozen cwt.1,185,7731,673,1951,427,3411,428,973997,856
Pork, frozen cwt.204,667111,337217,499193,358167,915
Veal, frozen cwt.123,308160,621156,666163,232159,172
Other frozen meats cwt.263,179319,210392,007384,535446,134
Meats, canned cwt.178,623173,260123,172124,763106,365
Meat-extract lb.357,109700,838837,3441,076,333911,580
Sausage-casings lb.4,609,8525,279,2095,576,7805,388,0585,185,894
Milk, preserved13,965,08419,735,91918,054,20026,299,63324,483,418
Milk, dried lb.18,218,96432,545,54332,700,23245,904,94757,292,403
Apples, fresh lb.5,051,7347,172,45335,697,26623,746,28936,817,350
Pears, fresh lb.3,0906,005883,45517,5906,728
Peas Cental354,277264,633559,819456,799449,848
Potatoes cwt.31,84939,79238,25224,19629,700
Calf-skins No.868,345753,958848,437818,796917,263
Cattle-hides No.359,948403,642481,875444,122339,719
Rabbit-skins No.18,002,05814,927,43815,440,86110,788,41911,139,918
Opossum-skins No.382,914822,623305,252271,056239,592
Sheep-skins, with wool No.679,5821,247,8291,175,420794,103677,388
Sheep-skins, without wool No.12,456,68515,436,80715,396,12914,045,00218,659,401
Wool lb.282,919,358413,111,494422,581,513437,418,526405,846,320
Linen-flax (fibre and tow) cwt.26,92214,3629,7456,1304,924
Seeds, grass and clover cwt.188,570140,141157,945167,570167,247
Tallow ton25,74325,9122,33023,69722,538
Coal ton18,91337,94322,50618,66511,550
Kauri-gum ton8851,4279231,1951,206
Gold oz.110,942107,53590,12345,22175,456
Silver, oz.4,441109,738152,471110,82450,423
Timber, sawn sup. ft.6,483,7438,724,84613,054,71228,720,78316,018,724
Sugar of milk lb.1,200,8641,354,8241,378,9163,913,0065,215,135

EXPORTS OF NEW ZEALAND PRODUCE (VALUES) FOR YEARS ENDED 30TH JUNE

Commodity.1945–46.*1946–47.*1947–48.*1948–49.*1949–50.*

* Provisional.

† Including commodities not enumerated.

 £££££
Butter19,706,46025,080,55531,491,65435,121,67837,041,930
Butterfat, dry4,453  2,842111,408
Casein51,497314,785542,518593,204513,913
Cheese8,540,75611,176,71112,254,36111,276,93212,710,528
Fish229,126301,130436,701479,708577,865
Honey6,7652,6643,2816,87623,399
Beef, frozen2,255,1153,253,0584,005,0183,197,7023,034,480
Lamb, frozen12,573,11016,994,28619,195,11318,745,74116,038,709
Mutton, frozen2,369,5154,197,0823,859,3953,800,5992,905,057
Pork, frozen880,841579,2771,248,4621,086,037970,060
Veal, frozen270,828519,512521,235395,253479,028
Other frozen meats898,8041,330,3051,837,8601,479,1931,562,387
Meats, canned1,243,4691,401,411952,742945,890809,223
Meat-extract75,694181,475230,372264,916177,571
Sausage-casings1,143,6441,576,3362,115,5681,971,5962,310,451
Milk, preserved406,611610,229594,107876,524835,622
Milk, dried586,9161,194,6381,314,2431,786,9372,212,193
Biscuits466,611102,76031,66620,83016,987
Apples, fresh67,66986,812780,386431,352654,111
Pears, fresh5815021,722466196
Peas680,986616,4321,194,726967,735838,519
Potatoes25,77030,92834,94339,38829,252
Calf-skins431,860753,0771,194,863828,316897,254
Cattle-hides727,9821,332,8522,098,0881,737,4341,385,119
Rabbit-skins1,337,2921,313,318977,105659,113304,014
Opossum-skins159,528202,82871,48265,01358,779
Sheep-skins, with wool238,980552,776734,029399,391397,955
Sheep-skins, without wool1,774,6164,105,1355,010,6513,675,3405,129,086
Other hides and skins152,043224,009116,18788,29484,525
Wool20,642,53832,878,66642,849,11447,248,22560,065,751
Linen-flax (fibre and tow)253,233133,15479,09852,87640,294
Seeds, grass and clover2,043,6252,077,9401,359,6571,680,6201,564,750
Tallow838,3411,771,2902,280,5752,437,6583,206,375
Coal50,001103,44664,04555,87442,587
Kauri-gum72,128137,09097,583117,513121,915
Gold1,173,2351,136,263940,532401,712860,962
Silver47824,11038,02524,66811,238
Machinery and machines859,301273,202249,569298,970163,324
Timber, sawn131,707166,482285,952625,133394,064
Sugar of milk52,94364,46370,002167,179202,057
    Totals89,043,041120,735,457145,043,498147,882,392161,688,446

RE-EXPORTS.—Until recent years the forwarding trade of New Zealand has never been of great significance. The bulk of the total amount is made up by various classes of machinery, hardware, metal manufactures, motor-vehicles, textiles, and also items such as electrical apparatus, bunker fuel oil, motor-spirits and oil, and films. Munitions and war stores comprised the bulk of the large totals shown in 1943, 1944, and 1945.

There is a genuine entrepôt trade with the islands of the Pacific, the amount of which is, however, comparatively small. Exports to Cook Islands and Niue, which are treated as part of New Zealand, are not included in the figures of either exports or re-exports.

RE-EXPORTS (EXCLUDING SPECIE) FROM NEW ZEALAND

 £

* Provisional.

1929764,050
1930731,111
1931631,454
1932633,532
1933597,168
1934571,554
1935486,648
1936488,135
1937505,322
1938575,657
1939601,286
1940767,597
1941532,477
1942739,063
19431,627,900
19446,105,148
1945*3,033,485
1946*973,854
1947*1,693,080
1948*1,353,636
1949*1,177,960

The destination of this re-export trade is shown in the following table.

Country.1945.*1946.*1947.*1948.*1949.*

* Provisional.

 £££££
United Kingdom248,72247,293284,746145,017147,286
Hong Kong 54541,3037,7192,188
Republic of India400,016140,5094,47716,306230
Pakistan     
Canada78,9261,78210,1604,7093,203
Australia945,432126,413350,027378,653259,733
Fiji123,73374,75198,66584,044159,792
Tonga31,56729,02532,62135,80732,105
Western Samoa84,15052,93167,93860,59449,467
Italy604,280 208892,259
Egypt67,658505 80 
Indonesia23,55417,463125,090  
United States of America14,14915,57321,16120,08428,912
Other countries20,33077,145103,07395,07782,993
Ships' stores390,968389,919553,799504,657409,792
    Totals (excluding specie)3,033,485973,8541,693,0801,353,6361,177,960

EFFECT OF PRICES ON NEW ZEALAND EXPORTS.—The incidence of fluctuating prices over a number of years operates to render the currency aggregate of a country's trade of little value as an indicator of movement in the volume of trade—i.e., from a quantity point of view. Owing to the homogeneous nature of the bulk of New Zealand's exports it is possible, fortunately, in nearly every case to obtain, the quantity exported as well as the value. By taking the average export values of any particular year, and applying to them the quantities exported for any other year, it is possible to obtain a reliable indication of changes in the volume of exports. A computation on the above basis is particularly applicable in the case of New Zealand, as normally approximately 97 per cent. of the exports are treated quantitatively. Even in the war years, with high munition exports being recorded, this percentage did not fall below 90.

Comparisons of movement in the volume of exports are usually made over short periods in New Zealand, and therefore a computation of value of exports on the basis of values ruling in the previous year is of interest not only as indicating the effect of price-changes from year to year, but also in that it gives a reliable indication of year-to-year changes in the volume of exports. By establishing the relationship of the various years with their immediate predecessors it is possible to obtain link relatives, and by the application of these link relatives to a given base year or period a series of chain relatives (index numbers) permitting longer term comparisons is obtained. Index numbers on the base 1926 (=100), and computed by the method indicated above, are given in the next table. As explained earlier however, considerable quantities of New Zealand produce supplied to the United States Forces by way of reverse lend-lease during the years 1943–45 were not included in the export figures, and the volume index for those years has been affected accordingly.

Year.Total Exports (New Zealand Produce).Effect of Price-changes.Index Numbers of Volume of Exports (N.Z. Produce).
Recorded Value.Value at Prices of Previous Year.Gain.Loss.

* Provisional.

 ££££1926 (=100)
192644,339,18354,696,306 10,357,123100
192747,571,23348,094,196 522,963109
192854,660,36549,091,4665,568,899 112
192954,176,01356,465,248 2,289,235116
193044,209,40655,655,835 11,446,429119
193134,319,24444,630,116 10,310,872120
193234,976,38738,128,569 3,152,182133
193340,408,75140,999,141 590,390156
193446,771,29339,039,1927,732,101 151
193546,051,73345,694,497357,236 147
193656,263,80549,172,2617,091,544 157
193766,208,05755,966,79110,241,266 157
193857,800,62662,933,946 5,133,320149
193957,448,03058,702,703 1,254,673151
194072,973,53663,558,8919,414,645 167
194166,946,93665,141,6811,805,255 149
194280,545,57478,539,1322,006,442 175
194370,234,69867,369,9982,864,700 147
194471,681,79868,097,2893,584,509 142
1945*78,502,94671,538,2646,964,682 142
1946*100,333,31194,816,0695,517,242 172
1947*127,713,184106,122,46521,590,719 182
1948*146,469,226132,386,18314,083,043 188
1949*146,188,409153,252,289 7,063,880197

As mentioned previously, the comparison of each year with the preceding year brings out the gain or loss resulting from a rise or fall in prices. The gain or loss shown for individual years represents the increase or decrease in value due to rising or falling prices.

A study of the figures given in the Statistical Summary towards the end of this book, showing quantities and values of the principal commodities exported over a lengthy period of years, will give a good idea of the relative effects of increased volume and of price-movements in the huge growth of external trade over the period as measured by the total value of exports.

The following comparison between the year ended 30th June, 1939, and the two latest years—1948–49 and 1949–50—is of interest as showing the influence of altered prices on the value of exports of principal commodities. As mentioned earlier, June years are in many respects preferable to calendar years, as they enable a comparison between one season and another.

Commodity.Twelve Months Ended 30th June, 1939.Twelve Months Ended 30th June, 1949.*Twelve Months Ended 30th June, 1950.*
Recorded Value.Value at Prices of 1938–39.Recorded Value.Value at, Prices of 1938–39.

* Provisional.

 £££££
Butter15,813,14435,121,67818,941,50337,041,93019,035,346
Cheese5,726,52311,276,9325,947,83912,710,5286,399,457
Beef, frozen1,078,8073,197,7021,847,1203,034,4801,787,674
Lamb, frozen8,768,23618,745,74113,466,99816,038,70911,100,604
Mutton, frozen1,812,6243,800,5992,517,4222,905,0571,757,923
Pork, frozen1,685,6751,086,037633,924970,060550,509
Veal, frozen265,485395,253310,500479,028302,777
Meats, canned274,499945,890561,234809,223478,472
Sausage-casings672,7001,971,596827,0672,310,451796,035
Milk, condensed99,242876,524447,094835,622416,218
Milk, dried237,2721,786,937653,7972,212,193805,555
Peas144,071967,735406,734838,519400,545
Calf-skins238,737828,316180,381897,254202,073
Cattle-hides475,2271,737,434389,8501,385,119298,205
Rabbit-skins244,191659,113228,714304,014236,166
Sheep-skins, with wool386,470399,391152,706397,955130,262
Sheep-skins, without wool1,045,3113,675,3401,047,7575,129,0861,391,991
Wool12,899,39747,248,22518,765,42060,065,75117,499,323
Grass and clover seeds240,9451,680,620873,4921,564,750870,844
Tallow453,4902,437,658379,2213,206,375360,673
Gold1,505,818401,712398,506860,962664,948
Totals of above items54,067,864139,240,43368,977,279153,997,06665,485,600

Exports during 1949–50 of the commodities dealt with realized £88,511,466 more than they would have at prices ruling in 1938–39. In 1948–49 the corresponding gain was £70,263,154. The aggregate recorded value of the items listed above represent 95 per cent. of the total exports of New Zealand produce for the year ended 30th June, 1950, the corresponding figure being 94 per cent. for the previous year.

EXPORTS TO COOK ISLANDS AND NIUE.—Trade with the Cook and associated Pacific Islands is not regarded as external to New Zealand, but merely as interchange between different parts of the country, and it is therefore not included in the account of the external trade. The trade of these islands with other countries is also omitted from New Zealand trade statistics. Separate returns are made of the transactions between New Zealand and these islands, and exports to the islands are summarized below.

Year.Exports.

* Provisional.

 £
193864,456
193967,968
194075,445
194175,814
194273,673
1943103,760
194493,229
1945*132,880
1946*166,423
1947*254,461
1948*291,227
1949*278,487

Further particulars regarding the trade of the Islands will be found in the section of this book dealing with Island Territories.

9 C—IMPORTS

THE statistics of imports are compiled from entries passed at the Customs. The value shown for all merchandise imported is the current domestic value in the country of export at the time of exportation, plus an allowance of 10 per cent. to cover freight, insurance, &c. Import values are expressed in terms of New Zealand currency. In Subsection 9A will be found (in conjunction with export figures) a summary of import totals for recent years, expressed both in New Zealand currency and in sterling, together with a series of index numbers of the volume of import trade and of the value, expressed in terms of gold, sterling, and New Zealand currency. Import totals are exclusive of specie, except where the contrary is expressly stated.

IMPORT CONTROL.—The Import Control Regulations, which came into force on 7th December, 1938, prohibit the importation of goods into New Zealand except under a licence or unless exemption from a licence is granted by the Minister of Customs. Application for a licence must be made in the prescribed form to the Collector of Customs at the port at which it is desired to import the goods. The policy generally is to ensure that after overseas debt commitments have been met from the sterling funds the maximum funds available will be provided for the importation of essential commodities, with particular regard to the needs of primary and industrial production in New Zealand. During the war period the availability of supplies and shipping and the dictates of a war economy were also factors of material importance.

The Licensing Schedule issued in the latter half of each year, contained items which could be divided into three main groups—viz., (a) items virtually excluded from importation, (b) items allowed to be imported only after close examination of each individual application and (c) items allowed to be imported on a “basic allocation” dependent on the previous “import history” of the applicant. In the consideration of a licence the factors taken into account include such matters as past imports, probable demand and overseas supply, local availability (actual or potential), and Government policy in relation to protection of industry or special and specific limitation of consumption of certain types of goods. A further important feature of the policy has been the desire to give the greatest possible preference to the goods of United Kingdom manufacturers.

A summary of the operations of the licensing system from its inception in 1939 up to the 1947 period will be found in the 1946 Year-Book (pp. 846–849).

Licences for the 1948 period (1st January to 31st December) were not issued on the same scale as those for the 1947 period. In view of balance of payments problems affecting the sterling area, the United Kingdom towards the end of 1947 appealed to the New Zealand Government to confine its imports from scarce currency countries to strictly essential goods, and also to limit total imports to an amount which could be met from current income. The availability of 1948 import licences was extended to 28th February, 1949.

A new basis was fixed for the allocation of import licences for the 1949 period. Instead of 1938 imports being used as the basis for allocations supplemented by special licences, where practicable 1948 licences were taken as the basis in dealing with 1949 allocations, but in some cases it was necessary to take 1946 or 1947. All licences granted in the new base period—whether such licences were basic or otherwise, except those mentioned below, were used as a basis for 1949 allocations. However, licences in the new base period which were granted under extraordinary circumstances—such as replacement of licences from an earlier period, no-remittance licences, and special licences covering orders for a particular contract—were not included as part of the base-year licences to which current allocations were related.

The 1949 importing policy followed that of the 1948 licensing period when a limit was placed on imports to goods which could be paid for out of current income. Imports from scarce currency countries continued to be confined to strictly essential goods, and, in view of the need to limit dollar expenditure, special considerations applied in the case of imports from the dollar areas, or from countries where the expenditure of dollars was involved. Allocations were not related to any base period, but were made on the merits of individual applications, so far as this class of imports was concerned. A similar procedure applied to imports from other sources when it was not possible to fix basic allocations.

A further important feature in connection with imports for 1949 was the provision for token imports of certain specified articles from the United Kingdom. No allocation for these imports was made in the licensing schedule. This provision was designed particularly to enable old-established business connections to be maintained. The Government, under this procedure, gave favourable consideration to applications which sought permission for entry of goods (limited to those set out in the list) up to 20 per cent. of the value of similar goods supplied in 1938 to the applicant by a manufacturer in the United Kingdom. In each ease it was necessary for the applicant to furnish, in support of his application, a certificate from the manufacturer to the effect that in 1938 he supplied the applicant with goods, as specified, to a stated f.o.b. value, for each class mentioned in the certificate. Unless this certificate was supplied, applications were not considered.

Licences for 1949 related to the period from 1st January, 1949, to 31st December, 1949, but were available also for the entry of goods imported not later than 28th February, 1950. They were not, however, available for imports before 1st January, 1949. As a result of the exchange rate adjustment during 1948, the value of the licences which were granted in the new base period were, in determining the allocation for 1949, reduced by one-fifth.

The 1950 Licensing Schedule followed generally along the lines of the previous year. The Government announced substantial changes in the previous policy when the 1951 Licensing Schedule was published. These include the exemption from licensing of 326 items from countries in the sterling area; non-discrimination of licences other than for imports from the scheduled (hard-currency) countries; release of the Schedule by the 1st August instead of mid-October as previously; altering the licensing period to coincide with the calendar year; and making 1950 the base year for most basic allocations for 1951. For a review of import licensing policy since 1949, see page 948.

CLASSIFICATION OF IMPORTS.—A classification of imports under four broad divisions is given in the following table for the last eleven years. As in the case of exports where a similar table is shown, the figures for previous years have been amended to bring them into line with the classification employed by the United Kingdom Board of Trade. Imports by “parcels post” are classified under the several headings instead of being shown as a separate item as in the case of exports. To enable a proper comparison to be made over the period as a whole, imports of direct war materials as covered by the import item “Ordnance stores and military and naval equipment” have been eliminated from the table for the years 1940–45. Taken in conjunction with a table based on the same classification which is given in Subsection 9B (Exports), the figures show plainly how New Zealand's export trade is derived predominantly from the products of her primary industries, and her import trade consists very largely of manufactured or partly manufactured goods. The effect of the policy of import selection and control introduced towards the end of 1938 is seen in the decline in the importation of manufactured articles during 1939 and 1940, but the further decline in 1941 and 1942 was mainly due to inability to secure supplies owing to war conditions. Lend-lease supplies played a large part in the increases shown during 1943 and 1944, but the pent-up demand for consumer goods was only met to any substantial degree in the post-war period. It should be noted, however, that the figures for value cannot be taken as an accurate indication of changes in the volume of imports, as prices have risen very substantially, particularly during the last few years.

Year.Food, Drink, and Tobacco.Raw Materials and Articles mainly unmanufactured.Articles wholly or mainly manufactured.Live Animals.Totals.

* Munitions and war stores excluded for these years.

† Provisional.

 £££££
19396,516,9902,263,00740,553,47453,71249,387,183
1940*6,460,6182,469,42937,453,40936,77746,420,233
1941*6,082,9872,493,60635,278,01919,29643,873,908
1942*6,884,3761,967,34030,540,64214,82139,407,179
1943*5,740,3902,807,41840,021,68918,18548,587,682
1944*6,986,5192,721,52546,750,74156,81656,515,601
1945*9,133,6162,183,90839,985,79472,31451,375,632
194610,162,4642,761,69858,590,526119,42671,634,114
194715,416,3545,046,915108,170,43091,142128,724,841
194814,279,8055,378,222108,444,03898,627128,200,692
194913,817,4925,765,35399,938,121192,172119,713,138

The principal groups of commodities normally imported are clothing and textiles, manufactured fibres and yarns, metals and machinery, sugar, tea, fruits (dried and fresh), wheat, alcoholic liquors, tobacco, paper and stationery, oils, motor-vehicles and accessories, chemicals and drugs, fertilizers, and timber. It will be seen from the above table that in most years articles wholly or mainly manufactured account for upwards of 80 per cent. of total merchandise imports. It should not be assumed, however, that items included in this class necessarily compete with New Zealand manufactures. In the first place, a large proportion of imports of manufactured commodities is comprised of goods which cannot be produced economically in New Zealand or products of industries which have never been established in New Zealand. A further point to be taken into consideration is the fact that many imports of manufactured or semi-manufactured goods form the raw material of further factory processes in the country—e.g., piece-goods.

Since 1914 the statistics of both imports and exports have been classified according to the nature of the commodity, the items being assembled in well-defined classes as shown in the following table, covering merchandise imports for the years 1947, 1948, and 1949. In January, 1949, the list of individual trade items within each class recorded for statistical purposes was greatly extended.

No.Class.1947.*1948.*1949.*

* Provisional.

† 1949 figure includes cement.

‡ 1949 figure excludes cement.

  £££
IFoodstuffs of animal origin (excluding live animals)1,030,1031,018,193932,269
IIFoodstuffs of vegetable origin7,839,9197,895,9148,186,792
IIIBeverages (non-alcoholic) and substances used in making up the same2,814,7933,231,8432,502,989
IVSpirits and alcoholic liquors877,000810,612780,470
VTobacco and preparations thereof2,854,5391,323,2431,414,972
VILive animals91,14298,627192,172
VIIAnimal substances (mainly unmanufactured), not being foodstuffs402,212383,979832,806
VIIIVegetable substances and non-manufactured fibres1,948,0941,769,7441,411,243
IXAApparel5,343,6143,328,1602,327,577
IXDTextiles22,729,63220,751,54417,968,064
IXCManufactured fibres and yarns3,921,5343,952,4855,615,543
XOils, fats, and waxes7,247,4219,678,4338,260,882
XIPaints and varnishes638,492922,337750,492
XIIStones and minerals used industrially556,025412,395666,901
XIVAMetal, unmanufactured, partly manufactured, and ores1,096,9291,591,840 
XIVBMetal manufactures, other than machinery and machines11,812,70315,278,69516,045,229
XVMachinery and machines18,418,78021,064,22221,706,233
XVIARubber and manufactures thereof (not including tires)970,044872,253817,140
XVIBLeather and manufactures thereof, including substitutes728,912318,925421,982
XVIIATimber1,086,6351,169,6141,259,094
XVIIBWood, cane, and wicker manufactures313,021172,911203,272
XVIIIEarthenware, china, glass, stoneware, cement, and cement materials2,225,2982,317,3381,645,936
XIXAPaper5,024,4374,584,7353,020,734
XIXBStationery2,444,1392,356,0942,068,282
XXJewellery, time-pieces, fancy goods, and sporting requisites1,360,3761,044,7071,010,548
XXIOptical, surgical, and scientific instruments1,517,8151,796,4881,522,271
XXIIADrugs, chemicals, and druggists' wares4,245,4743,849,9793,197,006
XXIIBManures1,780,9981,480,4962,151,271
XXIIIAVehicles and tires13,162,53411,669,7529,477,498
XXIIIBMiscellaneous4,242,2263,055,1343,323,470
     Totals, merchandise imports128,724,841128,200,692119,713,138

The next classification presented is that according to the purpose or use of commodities, particulars being given for the yearn 1939 and 1945–48. It should be mentioned that the absence of essential information in regard to actual purpose or use of a number of commodities has created certain difficulties, necessitating the employment of arbitrary decisions in some instances. Also, where certain commodities are used for more than one purpose it has not been possible to segregate the portion applicable to each. In such cases the whole import has been assessed according to the principal use of the article or commodity in New Zealand.

Class of Merchandise.1939.1945.*1946.*1947.*1948.*

* Provisional.

Producers' materials—     
 £££££
  Building and construction3,509,7882,229,7693,221,5004,951,8925,887,937
Farm1,332,2371,378,7432,281,6002,528,7532,081,484
Manufacturing—     
  Food1,995,7605,623,5975,213,8007,113,4647,423,441
  Beverages28,94097,536141,700239,274144,581
  Tobacco550,3241,054,7021,241,5001,108,833869,037
  Textiles (apparel or household goods)4,394,35510,390,78011,821,90020,654,65218,303,482
  Other7,841,5468,933,39811,969,80020,466,86122,789,386
Fuels and lubricants3,289,7543,354,9593,748,8006,445,1948,504,995
Auxiliary aids to production1,081,2661,111,5051,088,8003,474,0023,540,116
Producers' equipment—     
  Farm1,159,1711,536,8672,123,7002,142,0244,196,502
  Commerce and industry5,568,2486,987,89210,797,50016,924,83818,072,449
Transport equipment—     
  Railway1,383,994337,876644,9001,425,7362,089,041
  Road5,595,9571,589,7015,283,10012,931,37711,346,863
  Other113,69544,95939,200285,820313,825
Consumers' goods—     
  Food1,688,7601,190,2041,268,0002,374,4462,225,919
  Beverages1,614,2561,348,7031,803,3003,065,9183,412,299
  Tobacco557,34678,783819,6001,978,624535,357
  Clothing and accessories1,869,575521,6121,158,1004,717,7922,948,637
  Household equipment2,112,3501,092,9652,287,8006,826,4456,183,980
  Other3,093,6142,470,5704,192,3007,804,4676,766,654
Munitions and war stores603,1413,697,296486,7001,264,279549,766
Unclassified3,10651151415014,941
  Totals, merchandise imports49,387,18355,072,92871,634,114128,724,841128,200,692

In the next table particulars are given of New Zealand's import trade for the years 1939 and 1945–48 according to the stage of production or degree of manufacture of commodities, the divisions used, following the classification of the former League of Nations, being “crude,” “simply transformed,” and “more elaborately transformed.” The inclusion of munitions and war stores during the war years has obscured the position, and in this and the following table these special items have been excluded for the year 1945.

1939.1945.*1946.*1947.*1948.*

* Provisional.

† Including unclassified items and munitions and war stores except for 1945, from which figure munitions and war stores are excluded.

Producers' materials—     
 £££££
  Crude2,869,3586,139,4846,651,6009,020,3787,938,848
  Simply transformed6,515,9856,812,1018,819,10012,834,43416,109,800
  More elaborately transformed10,267,60716,756,94020,421,10035,208,91733,450,700
Fuels and lubricants—     
  Crude726,6221,034,963934,2001,844,0262,495,939
  Simply transformed2,563,1322,319,9962,814,6004,601,1686,009,056
  More elaborately transformed     
Auxiliary aids to production—     
  Crude     
  Simply transformed2,275304  278
  More elaborately transformed1,078,9911,111,2011,088,8003,474,0023,539,838
Producers' equipment—     
  Crude52,30771,943119,40088,57196,273
  Simply transformed129,27072,77590,00088,519258,802
  More elaborately transformed6,545,8428,380,04112,711,80018,889,77221,913,876
Transport equipment—     
  Crude     
  Simply transformed387,653127,091225,500575,589501,797
  More elaborately transformed6,705,9931,845,4455,741,70014,067,34413,247,932
Consumers' goods—     
  Crude1,792,7261,918,8762,338,8003,782,9033,915,031
  Simply transformed157,92669,88837,100222,619174,379
  More elaborately transformed8,985,2494,714,0739,153,20022,762,17017,983,436
Total merchandise imports     
  Crude5,441,0139,165,26610,044,00014,735,87814,446,091
  Simply transformed9,756,2419,402,15511,986,30018,322,32923,054,112
  More elaborately transformed34,189,92932,808,21149,603,81495,666,63490,700,489
    Totals, all merchandise49,387,18351,375,63271,634,114128,724,841128,200,692

An indication of the changes that have occurred during the same period is contained in the next table, which gives the figures for each of the divisions as percentages of total imports.

1939.1945.*1946.*1947.*1948.*

* Provisional.

† Including unclassified items and munitions and war stores except for 1945, from which figure munitions and war stores are excluded.

Producers' materials—     
 Per Cent.Per Cent.Per Cent.Per Cent.Per Cent.
  Crude5.811.99.37.06.2
  Simply transformed13.213.312.310.012.6
  More elaborately transformed20.832.628.527.326.1
Fuels and lubricants—     
  Crude1.52.11.31.41.9
  Simply transformed5.24.53.93.54.7
  More elaborately transformed     
Auxiliary aids to production—     
  Crude     
  Simply transformed     
  More elaborately transformed2.22.21.52.72.8
Producers' equipment—     
  Crude0.10.10.20.10.1
  Simply transformed0.30.10.10.10.2
  More elaborately transformed13.316.317.714.717.1
Transport equipment—     
  Crude     
  Simply transformed0.80.20.30.40.4
  More elaborately transformed13.63.68.010.910.3
Consumers' goods—     
  Crude3.63.73.23.03.1
  Simply transformed0.30.20.10.20.1
  More elaborately transformed18.29.212.817.714.0
Total merchandise imports     
  Crude11.017.814.011.511.3
  Simply transformed19.818.316.714.218.0
  More elaborately transformed69.263.969.374.370.7
    Totals, all merchandise100.0100.0100.0100.0100.0

The abnormal conditions of 1945 and 1946 are reflected in the increased proportion of producers' materials and equipment imported compared with 1939, and a corresponding fall in consumers' goods. Apart from factors due to the war, however, there is discernible a long-term trend in this direction, indicating a steady growth in New Zealand's manufacturing potential. The policy of import control has no doubt given a definite impetus to this tendency.

The proportion of commodities described as “crude” and “simply transformed” both rose during the war years at the expense of those classified as “more elaborately transformed,” but in the last three years the percentage of “crude” items fell away to pre-war dimensions.

The “more elaborately transformed” group, after declining during the war years, rose to 74.3 per cent. of the total in 1947, compared with 69.2 per cent. in 1939, but by 1948 had receded almost to the pre-war level.

DIRECTION OF IMPORT TRADE.—The import trade of New Zealand, though spread over more countries than the export trade, is confined mainly to the United Kingdom, Australia, the United States of America, and Canada. For the pre-war years 1938 and 1939 these four countries accounted for 81.9 and 80.1 per cent. respectively of the total imports of New Zealand. During the war period, mainly as a result of the severance of trade with Japan, Indonesia, and most European countries, this concentration of New Zealand's imports was even more marked, and in 1946 the percentage was 85.3. In the three following years, mainly because of the resumption of imports from certain European countries, the proportion fell to normal, being 81.41 per cent. in 1949.

In the early years of settlement Australia was the source from which the young colony drew most of its supplies, and for a long period imports from Australia overshadowed imports from the United Kingdom. The proportion of imports from Australia, however, decreased steadily from 60 per cent. in 1862 to 7 per cent. in 1929. For some years prior to the outbreak of war the trend had been upwards, but particularly heavy imports from certain other countries, notably the United States of America, in 1943 and 1944 caused a sharp fall in the Australian percentages for those years. In 1949, 12.8 per cent. of total imports were of Australian origin, amounting in value to approximately four times that of New Zealand exports to Australia.

Imports from the United Kingdom comprised between 60 per cent. and 70 per cent. of total imports during the “eighties” and “nineties”; so that, at that time, the United Kingdom and Australia between them supplied approximately 80 per cent. of the total imports of New Zealand. With the disruption in trading relations during the First World War other countries—notably the United States of America and Japan—increased their share of New Zealand's import trade. This trend was accentuated by the appearance of new industrial products, in which the United States occupied a dominant position, and by severe foreign competition in staple United Kingdom manufactures such as the textile industry. In the circumstances, it is not surprising to find that the proportion of goods of United Kingdom origin included in New Zealand's imports of merchandise fell from about 60 per cent. before the First World War to about 46 per cent. in the late “twenties.”

From 1930 onwards there was a definite improvement in the relative position of the United Kingdom in New Zealand's import trade, partly due to New Zealand's tariff policy, in which preference to Commonwealth countries plays an important part. During each of the five years, 1931–35, over 50 per cent. of our imports of merchandise were of United Kingdom origin, this recovery having been made despite the growth in imports from Australia of certain goods—e.g., iron and steel—which were formerly almost entirely imported from the United Kingdom. From 1935, however, the proportion again declined, particularly during the war years, owing to difficulties of supply and abnormal imports of lend-lease material from the United States. With the return to more normal trading conditions in 1946, imports from United Kingdom (£34,194,878) rose to 47.7 per cent. of the total. Increased imports from Canada and the United States of America during 1947, plus the re-opening of many pre-war continental markets, resulted in the percentage dropping to 42.8 in 1947, but since then the imperative need to restrict expenditure in non-sterling areas and the increased availability of British goods for export has resulted in the United Kingdom resuming its pre-war position as the supplier of more than half New Zealand's import requirements (55.1 per cent. in 1949).

The United States of America was sending goods to New Zealand almost from the foundation of the colony, and the share of the imports received from that country steadily increased till in the first decade of the present century it was 11 or 12 per cent. The adoption of Imperial preference seems to have caused a temporary drop in the figure to about 7 per cent., though the proportion maintained a steady increase for several years after the First World War, and, indeed, considerably surpassed its old level. From 1933 to 1940 about one-eighth of the total imports came from the United States of America. The cutting-off of supplies from the United Kingdom and certain other countries owing to the exigencies of war and the necessity of obtaining war materials resulted in imports of United States of America origin showing large increases in the later war years. In 1943 imports from this quarter totalled £34,889,239, or 36.6 per cent. of the total, as against £32,615,873 from the United Kingdom. However, with the decline in munitions and lend-lease supplies, imports from the United States of America fell to £11,792,750 in 1946, 16.5 per cent. of the total, but rose again in 1947 to £23,329,104, 18.1 per cent. of the total. Both these percentages are well above those of the immediate pre-war years. In 1948 and 1949 the acute shortage of dollar exchange imposed, of necessity, a drastic restriction in imports of United States of America origin, which fell to 10.8 and 9.6 per cent. of the total.

Imports of Canadian origin gradually rose to 9.8 per cent. of the total (in 1929), but fell during the depression period to 4.5 per cent. (in 1932). By 1939 the proportion had risen to 8.9 per cent., but a very irregular movement prevailed during the war years, the 1943 figures reaching the high proportion of 12 per cent. Imports from Canada, as a “hard” currency area, fell to a marked degree during 1948 and 1949, the percentages of total imports being 5.4 and 3.9.

It should be noted that the nomenclature used in the following tables in regard to countries of origin of imports refer generally to status and territories in the years indicated and not necessarily to the present position.

The table which follows shows imports daring the last eleven years from the United Kingdom, other British Commonwealth countries, and other countries.

Year.Country of Shipment.Country of Origin.Total Merchandise Imports.
United Kingdom.Other British Commonwealth Countries.Other Countries.United Kingdom.Other British Commonwealth Countries.Other Countries.

*Provisional.

† Not available.

193923,277,00413,811,17912,299,00023,133,87213,512,25812,741,05349,387,183
194023,111,97415,105,58010,780,11522,945,38614,760,75311,291,53048,997,669
194121,045,40715,947,95412,173,64921,179,81315,433,04512,554,15249,167,010
194220,072,32217,028,60416,755,08620,156,85116,505,55617,193,60553,856,012
194332,606,53226,419,80436,215,99432,615,87326,230,46136,395,99695,242,330
194434,926,90920,782,35430,687,94934,883,15520,556,19830,957,85986,397,212
1945*19,705,28618,624,32016,743,32219,835,98018,297,23016,939,71855,072,928
1946*34,185,08221,146,13116,302,90134,194,87820,828,92916,610,30771,634,114
1947*55,387,51738,658,09434,679,23055,038,98538,236,40735,449,449128,724,841
1948*67,421,28334,266,10326,513,30667,088,57733,795,09327,317,022128,200,692
1949*65,998,92629,611,99424,102,218119,713,138

The next table shows in more detail the principal countries from which New Zealand draws its imports, figures on the basis of country of origin being given for the years 1939 and 1946–49.

Country.1939.1946.*1947.*1948.*1949.*

*Provisional.

†For 1919 figure see Israel In “Other Countries.”

†For 1939 to 1948 figures sec Palestine in “British Commonwealth Countries.”

British Commonwealth of Nations, Protected States, and Trust Territories
 £££££
United Kingdom23,133,87234,194,87855,038,98567,088,57765,998,926
Europe5,2093,98654,59019,793493
Asia—     
  British Borneo5,2093,98654,59019,793493
  Europe     
Asia—     
  British Borneo2,05523,820214,4771,228,685948,801
  Ceylon823,9641,461,5261,949,3112,319,9951,689,881
  Hong Kong25,7241,67271,98262,72773,429
  Republic of India705,0882,118,9124,710,5213,558,4173,072,652
  Pakistan     
  Federation of Malaya426,75119,694502,880778,880899,392
  Colony of Singapore     
  Palestine5,5849,684148,0802,345
  Other12,8942,71311,1382,454763
Africa—     
  British West Africa33,060137,020423,202636,979591,415
  Kenya and Uganda25,00329,24678,282128,04826,696
  Rhodesia10,79849,91546,16046,86131,507
  Tanganyika Territory84610,93236,321104,85730,809
  Union of South Africa79,540220,79598,685725,818476,802
  Other46,26410,9839,00077,50545,684
America—     
  British West Indies63,96656,145170,370198,763230,831
  Canada4,376,9124,655,98611,609,4606,897,8324,635,840
  Newfoundland12,533 19,14623,50415,745
  Other814 7,0152,538555
Pacific—     
  Australia6,419,46910,419,76814,942,15414,194,17215,314,830
  Fiji47,9601,258,0182,176,5212,208,671925,404
  Gilbert and Ellice Islands57,663357,49621,60561,765
  Nauru Island201,23720,67678,229260,798260,373
  Tonga17,52152,22331,63635,92821,255
  Western Samoa90,485230,299332,836234,686221,702
  Other20,91815,76722,05730,99151,115
  Totals, British Commonwealth countries36,646,13055,023,80793,275,392100,883,67095,610,920
  Other Countries     
Europe—     
  Belgium417,488241,5702,440,2471,532,4101,853,205
  Czechoslovakia31,9232,410185,173464,715128,958
  Denmark14,0062,25028,88442,99247,550
  Finland80,37639,548398,005256,37343,215
  France232,42873,974874,399937,466406,367
  Germany872,0091,94123,23093,982339,899
  Italy137,8358,989418,268292,307170,131
  Netherlands307,38556,700611,476365,152282,689
  Norway67,46185,752312,954477,102396,186
  Portugal22,89949,898130,26981,12362,360
  Russia (U.S.S.R.)25,59498024,26135,63465,846
  Spain31,58785,96180,82347,60526,780
  Sweden325,916508,7951,148,4001,527,272667,049
  Switzerland159,161286,805558,374456,601367,473
  Other43,2082,08110,20063,856149,808
Asia—     
  Bahrein Islands278,493439,3491,089,0391,285,3551,512,898
  China117,389135,660233,368226,794221,962
  Iran29,113457,1011,883,0982,099,6321,789,099
  Iraq35,31767,94668,69692,10699,613
  Israel88
  Japan1,038,5845106,10559,157353,523
  Indonesia2,434,8265,43028,1791,577,0102,314,350
  Turkey17,9802,87348,94451,11441,476
  Other34,86644045,569128,415147,162
Africa—     
  Algeria2829,73666,52351,199
  Belgian Congo48233,29519,88520,8124,359
  Egypt5,63862,51598,38697,32312,076
  Morocco4,71441,582118,60482,29912,932
  Portuguese East Africa   108,59715,171
  Tunisia86,518 22,53894,13888,957
  Other5,6632141,19885814,960
America—     
  Argentina30,8065,43522,1446,472632
  Brazil16,1678,12874,89931,14750,097
  Chile18,07452,12169,54544,54650,214
  Netherlands Antilles44295,11854610
  Dominican Republic112,9241821,747324569
  Peru70,284886,34521,66226610
  United States of America5,613,15411,792,75023,329,10413,822,43411,511,676
  Uruguay11186,592233,661177,525
  Other14,97714,09660,9447,34317,400
Pacific—     
  Tuamotu Archipelago 809,885766,210564,566651,027
  Other15,72521,94111,5028,2525,117
  Totals, other countries12,741,05316,610,30735,449,44927,317,02224,102,218
  Totals, all countries49,387,18371,634,114128,724,841128,200,692119,713,138

The following table shows for the last eleven years the percentage of total imports (excluding specie) received from each of the principal countries trading with New Zealand.

IMPORTS (COUNTRY OF ORIGIN)

Country.1939.1940.1941.1942.1943.1944.1945.*1946.*1947.*1948.*1949.*

*Provisional.

 Per Cent.Per Cent.Per Cent.Per Cent.Per Cent.Per Cent.Per Cent.Per Cent.Per Cent.Per Cent.Per Cent.
United Kingdom46.8446.8343.0837.4334.2440.3836.0247.7442.7652.3355.13
Ceylon1.671.942.874.230.500.991.582.041.511.811.41
Republic of India1.432.922.763.383.073.784.792.963.662.782.57
Pakistan           
Federation of Malaya0.860.840.880.10   0.030.390.610.75
Colony of Singapore           
Union of South Africa0.160.240.270.390.100.100.440.310.390.570.40
Canada8.865.896.234.3612.035.909.246.509.025.383.87
Australia13.0015.9616.3215.1210.6711.9015.1014.6511.6111.0712.79
Fiji0.100.120.272.280.630.580.961.761.691.720.77
Other British Commonwealth countries1.282.211.790.780.550.541.110.921.432.422.18
Totals British Commonwealth countries74.2076.9574.4768.0761.7964.1769.2476.8172.4678.6979.87
Belgium0.850.830.04    0.341.901.201.55
France0.470.330.03    0.100.670.730.34
Germany1.770.100.020.01    0.020.070.28
Sweden0.660.420.04 0.02 0.230.710.891.190.56
Bahrein Islands0.560.75     0.610.851.001.26
Iran0.06 0.270.05 0.140.500.641.461.641.49
Japan2.101.650.440.02     0.050.30
Indonesia4.934.484.210.850.01   0.021.231.93
Netherlands Antilles  0.370.75 0.781.050.41   
Peru0.14  1.220.751.533.011.240.02  
United States of America11.3712.4418.5827.8036.6332.2323.7416.4618.1210.789.62
Tuamotu Archipelago  0.300.500.400.451.131.130.600.440.54
Other countries2.892.051.230.730.400.701.101.552.992.982.26
Totals, other countries25.8023.0525.5331.9338.2135.8330.7623.1927.5421.3120.13

It will be seen that the great bulk of New Zealand's imports of merchandise are of British origin, the proportion of total imports derived from British countries in normal times being approximately 75 per cent. although for reasons already outlined this proportion fell during the war years. Compared with pre-war years, however, most British Commonwealth countries have increased their share of the New Zealand import market.

Of the imports from foreign countries, those from Belgium (largely iron and steel goods), Iran (motor-spirits), and the Bahrein Islands (motor-spirits) were relatively high in 1948 and 1949, but the proportion of total imports supplied from sources outside the Commonwealth decreased appreciably during the two years.

Origin of Principal Imports.—The table which follows shows by main countries of origin details of the principal imports into New Zealand for the years 1939 and 1946–49.

Country of Origin.1939.1946.*1947.*1948.*1949.*

* Provisional.

 £££££
Egg-pulp
Australia 252,724437,373435,362379,063
Other countries246 2,03151 
    Totals246252,724439,404435,413379,063
Fruits (Dried)
Union of South Africa4,4404,43526,87595,64970,554
Australia342,367323,520490,999563,265635,709
Iraq35,31767,94667,53291,43199,593
Turkey12,734 33,54531,80914,110
United States of America77,529131,502447,03331,08071,044
Other countries2,73510,86444,68934,5704,934
    Totals475,122538,2671,110,673847,804895,944
Fruits (Fresh)
British West Indies30,77917,82526,24555,228129,942
Australia168,629152,819348,198318,518391,882
Fiji28,60343,00757,76362,60854,049
Tonga15,96345,78926,54924,13815,675
Western Samoa81,69247,56841,09146,35528,884
United States of America42,48615,839   
Other countries2,339300114281,763
    Totals370,491323,147499,960506,875622,195
Wheat
Australia417,1941,428,0492,092,7982,118,2182,428,392
Other countries26,517212,740  80
    Totals443,7111,640,7892,092,7982,118,2182,428,472
Sugar
Australia186,538864,935337,945380,6081,345,325
Fiji3,2601,154,7432,004,3112,051,434695,698
United States of America58,06429,856162,96357,62318,485
Netherlands4,417 11,31162,10710,718
Other countries601,35935,12721,69010,281926
    Totals853,6382,084,6612,538,2203,062,0532,071,152
Tea
Ceylon801,5271,146,1341,896,1492,261,7551,621,941
Republic of India37,199129,723207,254355,123172,385
Pakistan     
Union of South Africa17,282    
China3,0686051,2021,88610,932
Other countries21,382611839181
    Totals880,4581,276,5232,104,6232,618,8031,805,439
Tobacco and Preparations thereof
United Kingdom387,354619,0431,232,060398,621221,908
Union of South Africa1,86870,19316,2733,024 
Canada13760,256532,28382,381 
Australia78,79811023 1,463
United States of America565,1631,223,0311,064,674831,3101,271,661
Other countries2,3507,6758,7377,3741,945
    Totals1,035,6701,980,3082,854,0501,322,7101,496,977
Spirits (Beverages)
United Kingdom477,907302,296356,970349,089335,970
Union of South Africa11138019,16814,07017,389
British West Indies13,6627,51118,18311,89625,457
Canada1,65113,88958,1992,5721,352
Australia9,407104,397171,029163,780126,821
France49,3731,25934,19744,33472,875
Netherlands35,09514,27018,21419,85315,529
United States of America 250149  
Other countries2,9593,3528,6047,8619,305
    Totals590,165447,604684,713613,455604,698
Hosiery
United Kingdom122,274136,201870,270560,603635,976
Canada48,57423,55252,6403,697 
Australia6,86396,49696,8996,993 
Czechoslovakia6441,85353,8491,211 
Italy166537,7092,969 
Japan59,053 2626 
United States of America15265,432412,7512,350 
Other countries4,15720220,4671,1761,289
    Totals241,883323,7411,544,611582,025637,265
Hats, Caps,and Millinery
United Kingdom126,217197,166343,807253,084235,709
Canada33,96872,539124,17362,8067,350
Australia10,37735,90925,47415,26811,864
Czechoslovakia2,7021922,0214,2569,512
France8,092 6111,011 
Germany37,029    
Italy16,38154012,09913,85621,202
Switzerland11,70236,79443,39321,15027,911
China13,4597,63210,75832,36019,727
Japan14,160  5 
Ecuador3103,6169,6159095,424
United States of America12,5378465,8542,2571,443
Other countries7,2621,0352,68510,68219,870
    Totals294,196356,269580,490417,644360,012
Miscellaneous Apparel and Ready-made Clothing
United Kingdom605,506448,6081,426,533957,020905,223
Canada57,0814,50410,1702,6711,755
Australia15,14431,64482,61033,51541,462
Belgium12,150 3,2241,612 
Germany24,909    
Italy12,4671023,94815,00645
Japan32,87354118715 
United States of America19,4847,77615,1479,34237,350
Other countries32,2055738,9836,5044,023
    Totals811,819493,1691,570,7331,026,385989,858
Footwear
United Kingdom203,94532,446179,068346,356154,291
Hong Kong5,973 4,43610,540200
Republic of India Pakistan13,0991519,55534,892880
Rhodesia  28,94913,789405
Canada141,04049,031379,762205,62518,536
Australia3,6797052,38514,4351,058
United States of America2,6585111,668 70
Other countries24,3641011,13415,8952,537
    Totals394,75882,718626,957641,532177,977
Miscellaneous Drapery
United Kingdom390,677360,5551,744,7391,687,4551,964,661
Republic of India6263,54629,09148,72224,584
Pakistan     
Canada9,7333,64635,2719,3601,398
Australia7,5016,97181,68960,30478,243
Belgium4,3316,986171,00113,777744
Czechoslovakia1,5921416,6239,14777
Netherlands2,867 30,12521,377978
France8,6583,779122,27064,36622,121
Switzerland16,746 16,996 1,687
Japan48,686 1563,17120,109
United States of America7,34616,956118,65531,821644
Other countries37,2831,16410,0188,9306,846
    Totals536,046403,6172,376,6382,058,4302,122,092
Floor-coverings
United Kingdom484,413615,6341,376,2891,862,8151,409,629
Hong Kong738 16,1342,7512,890
Republic of India13,310232,992259,55851,7512,890
Pakistan     
Canada2,8449,63930,23520,7381,147
Belgium14,19628,505465,07179,0995,181
France3881,18723,538  
United States of America3,49413,88457,37332,189792
Other countries12,46782814,80614,2551,098
    Totals531,850902,6692,243,0042,063,5421,453,672
Cotton, Linen, and Canvas Piece-goods
United Kingdom1,418,8564,530,8054,691,2195,652,3877,172,583
Canada16,096133,904259,020202,49241,261
Australia6,0299,6494,4031,3086,013
Republic of India5,340452,988275,555215,824807,908
Pakistan     
Belgium4,4434,230232,29459,91374,943
Netherlands8,0295,090147,82524,8218,118
Switzerland4,7613,07655,71215,8362,530
Japan224,90553163684,640
United States of America16,190161,7961,074,374381,17433,907
Other countries7,17486152,46454,64456,711
    Totals1,711,8235,302,4046,792,8976,609,0358,288,674
Silk, Art Silk, &c. Piece-goods
United Kingdom413,5962,013,5413,118,8073,277,2143,469,625
Canada34,603129,104487,72649,2537,911
Belgium98525929,92418,2535,027
France25,61211,271222,31976,19721,000
Italy26,516341152,63151,46449,820
Netherlands399 35,2842,879924
Switzerland11,1295,93044,89524,3908,421
Japan308,2844545310128,428
United States of America31,43188,9601,053,45796,27711,259
Other countries64,0629115,65017,23442,755
    Totals916,6172,249,5015,161,2383,613,4713,745,170
Woollen Piece-goods
United Kingdom740,4421,248,7151,793,7683,328,2993,076,611
Australia2,331271,060636,474372,985197,848
Belgium4,0132,400132,112110,4181,859
Czechoslovakia79 13,08628,852 
France1,502 25,62020,612 
Italy4,375 46,71333,663 
Netherlands  15,1441,496 
United States of America60 34,956  
Other countries3,1453,52469,82611,2342,236
    Totals755,9471,525,6992,767,6983,907,5593,278,554
Bags and Sacks
Republic of India482,138477,3682,173,0621,418,1051,461,255
Pakistan     
Other countries2,3932,2646,51540,570153,532
    Totals484,531479,6322,179,5771,458,6751,614,787
Yarns
United Kingdom216,483798,596821,4901,681,3541,503,490
Republic of India9197,3203,846 5,402
Pakistan     
Australia139,523304,711502,880410,259176,072
Italy1,859 22,4316,3261,905
United States of America 69,475204,38932,60313,537
Other countries6,6591,57117,65659,30731,357
    Totals368,4431,181,6731,572,6922,189,8491,731,763
Motor-spirits
British Borneo  103,462689,502836,920
Federation of Malaya283,765   113,272
Colony of Singapore     
Bahrein Islands261,858393,014924,6201,088,3011,376,717
Iran 328,5711,052,5841,102,9271,177,625
Indonesia1,262,664  665,6231,348,253
Peru 691,854   
United States of America221,591590,7451,099,464662,858208,956
Other countries817259190194,804
    Totals2,029,9592,004,2563,180,1894,209,4015,256,547
Petroleum, Crude
British Borneo  113,827373,03978,475
Australia  309,131  
Bahrein Islands7,46510,47196,525130,78271,977
Iran28,409107,162595,891781,693466,756
Indonesia494,315  724,490474,879
Netherlands Antilles 292,068   
Peru 106,14815,548  
United States of America85,211318,036323,503119,45329,370
Other countries458580 95,92356,832
    Totals615,858834,4651,454,4252,225,3801,178,289
Mineral Oils (other than Motor-spirits and Crude Petroleum)
United Kingdom69,7686,4618,39517,0023,017
Bahrein Islands9,17035,86467,79466,20737,035
Iran 20,755190,49469,47086,423
Indonesia88,123  160,771218,308
Peru2688,3154,211  
United States of America329,661689,6221,079,4089,059,336660,993
Other countries18,8757,5155,02983,09214,600
    Totals515,623348,5321,355,3311,455,8781,020,376
Paints and Varnishes
United Kingdom220,091356,394312,569535,228546,032
Union of South Africa 10,3987,05427,97417,891
Canada11,16521,82243,473107,22315,064
Australia114,81386,22099,950110,20994,907
Belgium191 12,24637,6972,924
Netherlands8,68058511,8269,18420,872
United States of America25,48127,672151,07290,69642,309
Other countries13,4352,50830114,32816,200
    Totals393,856505,599638,491932,539756,199
Iron and Steel.—Bar, Bolt, and Rod
United Kingdom121,305148,50198,695211,419676,659
Canada9,10614,73723,4629,95016,612
Australia265,124248,871346,980267,989161,368
Belgium32 1,810143,926378,794
United States of America1,36814,694971907184,719
Other countries19651,05116,16756,617
    Totals397,131426,808472,969650,3581,474,769
Iron and Steel.—Plate and Sheet
United Kingdom1,000,942684,998992,0761,469,6031,822,277
Australia206,462206,044261,785266,052180,444
United States of America22,071622,425579,374515,014433,419
Other countries7,3327145963,35068,944
    Totals1,236,8071,514,1811,833,8312,254,0192,505,084
Iron and Steel.—Tubes, Pipes, and Fittings
United Kingdom439,324436,618257,412504,534564,211
Canada60,709120,49777,08561,973129,872
Australia41,434224,873364,192435,611272,444
United States of America35,8901,72111,3591,017174,128
Other countries7,553   7,511
    Totals584,910783,709710,0481,003,1351,148,166
Artificers' Tools
United Kingdom136,788219,390423,652549,553517,976
Canada56,24344,731139,222142,019115,591
Australia9,25955,478201,773172,221146,821
Germany14,415    
Sweden5,8215,20911,85918,77913,268
United States of America72,545127,039263,150114,78771,651
Other countries2,2154,6593,3507,17611,685
    Totals297,286456,5061,043,0061,004,535876,992
Fencing.—Plain and Barbed
United Kingdom124,70287,25043,40285,57992,546
Australia58,671987107  
Belgium  7,202187,050540,848
Germany   12,201228,995
United States of America3,3377,83845,08291,242118,903
Other countries7,8311,5333,7042,70034,738
    Totals194,54197,60899,497378,7721,016,030
Iron Wire (other than fencing)
United Kingdom42,101333,407222,711303,692351,394
Canada51,4516,769 6,896 
Australia134,57667,468119,80995,87464,463
Belgium4  151,691127,484
Czechoslovakia  18,050295,66652,347
United States of America3,77013,11050,873101,530146,630
Other countries1,433 26513,12319,879
    Totals233,335420,754411,708968,472762,197
Railway and Tramway Plant
United Kingdom1,081,693258,9351,077,6631,524,439981,555
Canada 11,078 8240
Australia49,74780,02466,18058,70746,878
Sweden13,2595   
United States of America10,58113,65422,42523,79560,872
Other countries  306 67
    Totals1,155,280363,6961,166,5741,606,9491,089,612
Miscellaneous Hardware
United Kingdom583,974763,6851,673,7961,647,461858,354
Canada31,04228,342102,43922,19523,762
Australia53,05395,344236,125188,731207,483
Sweden16,7973,92413,3706,9176,672
United States of America53,243185,92095,93547,34142,922
Other countries31,9411,84714,8259,57934,954
    Totals770,0501,079,0622,136,4901,922,2241,174,147
Agricultural Machinery
United Kingdom70,384122,850131,208330,242537,988
Canada34,62630,34162,71957,46645,411
Australia24,47964,784113,949142,337134,122
United States of America95,771185,857342,243334,464383,310
Other countries13,9076911,6574,07313,994
    Totals239,167404,523651,776868,5821,114,825
Dairying Machinery
United Kingdom38,17258,93967,74392,150209,709
Australia5,34723,70431,43921,13437,778
Denmark8151,3697,5147,9081,784
Sweden34,93129,22376,55454,89360,060
United States of America9,48011,29544,85031,91710,845
Other countries8,0103,98832410,12615,432
    Totals96,755128,518228,424218,128335,608
Electrical Machinery and Equipment (including Telephones and Accessories)
United Kingdom1,749,5982,783,5903,937,6775,516,9086,234,274
Hong Kong3,984137,18419,04919,820
Republic of India1,1631,66420,4735,762883
Pakistan     
Canada242,531262,352825,376337,204211,563
Australia124,623163,849285,807314,272502,724
Belgium65,1778,92313,28449,43154,636
Germany53,330 687  
Netherlands7,67410,56441,61063,84576,850
Sweden51,82343,19632,66167,08584,232
United States of America196,801236,7091,469,450839,008283,973
Other countries17,3092,6515,6356,06539,668
    Totals2,514,0133,513,4996,669,8447,218,6297,508,623
Wireless Apparatus
United Kingdom148,559115,242131,646142,187216,803
Canada2,8442,2376,8712,865 
Australia39,41111,05463,126106,424185,709
United States of America84,699108,115273,52586,66328,602
Other countries8,2961,3945,79148,22330,506
    Totals283,809238,042480,959386,362461,620
Tractors (including Parts)
United Kingdom29,094132,006201,6521,571,4101,678,867
Australia11,84259,01596,81151,97046,870
United States of America499,0151,287,039990,754879,0881,570,335
Other countries38,163132,44258244,556
    Totals578,1141,478,0731,291,6592,503,0503,340,628
Metal, Wood, Glass, Stone, Working Machines, and Tools
United Kingdom167,014402,709722,454881,227753,244
Canada12,44722,54370,89049,39714,237
Australia59,923159,554236,625213,415226,265
Sweden11,28212,11611,53421,66020,864
United States of America71,189209,940392,298228,397182,866
Other countries23,0382,4196,01013,78820,095
    Totals344,893809,2811,439,8111,407,8841,217,571
Leather and Leather Goods (excluding Footwear)
United Kingdom125,558172,573294,578251,273261,935
Canada7,55810,81627,74518,69735,407
Australia64,73782,03195,01328,55661,091
United States of America88,05447,790284,10028,29723,345
Other countries12,6271,64227,47627,23339,735
    Totals298,534314,852728,912354,056421,513
Raw Rubber and Manufactures (other than Tires)
United Kingdom90,389184,996308,129340,697361,557
Ceylon794265,99116,47415,66511,959
Federation of Malaya49,87326,907300,486309,714348,197
Colony of Singapore     
Canada64,42163,023155,82280,81613,858
Australia21,52445,96171,78067,27519,688
Fiji 17,0095,290  
Western Samoa 17,9044,371  
United States of America21,47846,312101,42349,62328,728
Other countries16,3162,9946,2696,4837,341
    Totals264,795661,097970,044870,273821,328
Timber
Canada51,174108,758552,727243,725389,865
Australia458,703340,978366,120721,593643,967
Japan52,003  19,03874,284
United States of America74,71150,410127,845106,848146,654
Other countries5,0072,14413,38119,19918,678
    Totals641,598502,2901,060,0731,110,4031,273,448
Earthenware and Chinaware
United Kingdom239,357561,186922,065952,129676,001
Australia1,2771152,0692,0761,736
Japan17,2081135481,749 
Other countries2,3084101,7181,8134,510
    Totals260,150561,824926,400957,767682,247
Glass and Glassware
United Kingdom175,698399,830639,448786,373616,148
Canada5,13324,48747,60519,19940,789
Australia68,58993,605175,830142,290108,015
Belgium47,1907,219103,651107,97521,126
Czechoslovakia4,51916221,52622,0615,922
United States of America22,61231,47359,23631,50123,310
Other countries23,7432,3784,53820,02917,010
    Totals347,514559,1541,051,8341,131,428832,320
Printing-paper
United Kingdom255,00098,981266,052330,991312,155
Canada358,676771,9321,408,1961,114,3101,002,018
Newfoundland12,523 15,06521,35915,412
Czechoslovakia8 17,68131,287 
Finland4,67628937,72128,693 
Norway5,782 49,400105,58260,227
Netherlands2,5491,09684,0459,7761,645
Sweden3,0944029,28370,28718,257
United States of America43,0502,819350,846105,96610,453
Other countries24,91440414,10836,5563,888
    Totals710,272890,6262,278,6911,848,8601,408,643
Paper other than Printing
United Kingdom319,815666,183781,874826,886857,780
Canada163,106396,848591,897320,059295,331
Australia80,11258,76990,56252,61550,846
Finland29,76838,861244,89984,67741,558
France14,4732,07157,05536,5289,780
Netherlands11,3161,13622,50511,8319,612
Norway23,58469,174204,100151,869122,643
Sweden83,67739,875353,185254,942206,324
United States of America107,32149,565360,82759,87128,118
Other countries55,4631,27338,84266,94028,363
    Totals888,6351,323,7552,745,7461,866,2181,650,355
Books, Papers, and Music
United Kingdom426,914641,667806,434865,723928,210
Australia152,845300,165459,802369,443392,441
United States of America83,957177,063262,469126,603145,587
Other countries6,8763,74511,66313,4683,839
    Totals670,5921,122,6401,540,3681,375,2371,470,077
Miscellaneous Stationary and Paper Manufactures
United Kingdom237,107235,476520,339476,305504,704
Canada11,15120,22546,14914,2768,095
Australia81,08447,82978,12572,11669,293
France370607212,575386,1501,072
United States of America33,97115,52937,72629,85217,829
Other countries12,3061,1187,4322,1585,971
    Totals375,989320,784902,346980,857606,964
Timepieces
United Kingdom20,19328,379104,74799,052133,360
Canada23,86034,51027,036  
Australia982,5452,479 20,308
Switzerland66,063152,168259,419199,705177,444
United States of America5,6713,31710,2909,9205,834
Other countries11,307133,7628,37713,257
    Totals127,192220,932407,733317,054350,203
Manures
United Kingdom90,16463,62477,83568,95451,757
Israel     
Palestine (excluding Israel)  115,228  
Seychelles41,043  67,32038,942
Canada 7,71113,29834,33335,153
Australia2,2323,910539235556
Gilbert and Ellice Islands57,591 51,41121,60561,762
Nauru Island201,23520,67684,265260,790260,071
Belgium138,042101,948188,000142,904355,523
France34,171 15,58156,037146,218
Germany58,620    
Algeria 29,73666,523  
Egypt5,37133,95645,99153,23115,347
Morocco 41,423132,66079,35324,544
Tunisia86,518 22,53894,138150,368
Chile16,24151,41868,20843,76047,553
Tuamotu Archipelago 809,774766,210554,123663,747
United States of America 432,355122,07117,433381,750
Other countries9,917 31308,697
    Totals741,1451,596,5311,770,3891,494,2462,241,988
Parts of Motor-vehicles
United Kingdom173,025297,340453,246839,892600,414
Canada40,59685,744198,424211,428148,272
Australia30,93666,585119,196127,778134,193
United States of America106,191136,410392,238336,085297,318
Other countries2,2582733,4854,7913,253
    Totals353,006586,3521,166,5891,519,9741,183,450
Motor-cars
United Kingdom2,065,4401,720,0824,308,8423,385,5862,767,622
Canada1,296,356239,0331,286,958359,376413,563
United States of America171,60974,396352,53737,69341,735
Other countries8,103 6891321,208
    Totals3,541,5082,033,5115,949,0263,782,7873,224,128
Motor Lorries, Trucks, Vans, and Buses
United Kingdom201,791413,8131,071,2051,805,6582,048,456
Australia  1001,7405,708
Canada346,545477,1531,091,232535,062301,588
United States of America98,79788,272345,208309,830106,207
    Totals647,133979,2382,507,7452,652,2902,461,959
Tires and Tubes for Motor-vehicles and Motor-cycles
United Kingdom477,876410,019818,2571,561,118482,851
Republic of India     
Pakistan 44,375131,640110,27927,137
Canada308,22997,097387,806340,72123,265
Australia1,755678,346686,70744,693148
United States of America24,60732,266328,412139,58719,849
Other countries1,16529,53522,408458,30628,401
    Totals813,6321,291,6382,375,2302,654,704581,651

IMPORTS FROM COOK AND ASSOCIATED ISLANDS.—Trade with the Cook and associated islands is not included in the export and import totals for New Zealand, but is shown separately in official publications. The following table shows imports into New Zealand from the group. Further particulars of the trade of the islands will be found in the section dealing with Island Territories.

Year.Imports.

* Provisional.

 £
193960,635
194090,292
194186,073
194267,562
194388,859
194497,980
1945*87,897
1946*124,634
1947*129,177
1948*185,408
1949*188,445

The principal articles imported into New Zealand from the Cook and associated islands are as follows:—

Item.1939.1946.*1947.*1948.*1949.*

* Provisional.

Fruits, fresh—£££££
  Bananas23,9135,757312161,517
  Oranges22,0138,67519,30313,71021,522
  Tomatoes5,51443,62112,30734,62111,421
  Other3909312,9169756,118
Copra 35,52050,64495,28289,858
Other apparel  7,31113,01323,983
Cinematograph films (re-imports)3,7372,9454,3252,9852,595
Arrowroot845,4024,9555,164914
Hats and caps 5,6307,5769,9821,504
Wickerware 5,6983,9781,5944,029
All other items2,43910,45315,5308,06624,984

9 D—CUSTOMS TARIFF AND REVENUE

THE TARIFF.—The rates of Customs and excise duty in force in New Zealand are set out in the publication entitled “The Customs Tariff of New Zealand,” published by the Government Printer, Wellington.

A summarized historical account of the Customs tariff of New Zealand, setting forth the principal developments and changes from earliest times to 1930, will be found in the 1931 number of the Year-Book. Considerations of space preclude a detailed account of the rates of duty now levied on goods imported into New Zealand, and only a brief survey of the nature of the tariff and of developments since 1930 can be given here.

The basis of Customs taxation is primarily ad valorem, rates of duty being expressed as percentages of the value of imported goods as defined in the Customs Acts, but specific duties are applied to some lines, including several of the principal revenue items such as alcoholic beverages, tobacco, tea, sugar, and motor-spirits.

For duty purposes imported goods are classified according to categories of source, and the form of tariff is therefore “multi-column,” listing rates of duty under the British Preferential tariff, agreements with certain Commonwealth countries, the Most-favoured-nation Tariff, and the General Tariff.

The last complete revision of the tariff took place in 1934 and the present tariff is that set forth in the First Schedule to the Customs Acts Amendment Act of that year, as modified by a number of subsequent enactments, and in the various Trade Agreement Acts, including the General Agreement on Tariffs and Trade Act, 1948, to which reference is made later in this subsection.

Briefly the Customs tariff, apart from the obtaining of revenue, has for its objects the following:—

  1. The development of New Zealand industries.

  2. The maintenance and extension of markets for New Zealand produce.

  3. The encouragement of intra-Commonwealth trade.

Under the Ottawa agreement of 1932, New Zealand, in common with the other Commonwealth countries, was committed to hold an inquiry into the tariff and, if necessary, to revise it in accordance with certain explicitly stated principles. New Zealand undertook to afford protection against United Kingdom products only to industries which were reasonably assured of sound opportunities for success, and to grant protection on such a level as to enable the United Kingdom producer to compete on the basis of the relative cost of economical and efficient production.

As a result of the Ottawa Conference, dutiable goods, the produce of the United Kingdom or of any British Commonwealth country except Canada, the Union of South Africa, Eire, Newfoundland, or India, were exempted from the surtax on duty previously payable. Reductions were made in the rates of duty charged on confectionery, apparel, hosiery, and silk and artificial silk piece-goods, and an additional preference to British Commonwealth countries was granted by the imposition of a duty or an increase in the existing rate on foreign cocoa-beans, raw coffee, cigars, rum, asphalt and bitumen, certain unground spices, and paper.

A Tariff Commission was set up in 1933 to inquire into the Customs tariff and to recommend for the consideration of the Government any alterations therein with a view to implementing the agreement made at Ottawa, and having regard, inter alia, to the financial, economic, and industrial conditions in New Zealand.

On the basis of the report of this Commission, resolutions amending the tariff were introduced on 10th July, 21st August, and 13th September, 1934, and ratified by the Customs Acts Amendment Act, 1934. Some of the principal alterations made to the British preferential tariff at that time were listed in the 1946 and earlier issues of the Year-Book.

In addition to the ordinary rates of duty imposed on goods entering New Zealand, additional revenue has been obtained in recent years by a surtax on dutiable imports and a primage duty on certain goods otherwise free.

The surtax was imposed in 1930 in lieu of a primage duty of 1 per cent. or 2 per cent. ad valorem previously charged on practically all imports whether free or dutiable. This surtax was not, however, applied to dutiable goods of Australian origin, which continued to pay the primage duty of 1 per cent. or 2 per cent.

The rate of surtax was fixed at one-twentieth of the total duty otherwise payable on certain goods (e.g., spirits, tobacco, timber, sugar, motor-spirits), and nine-fortieths of such duty on all other dutiable goods, except wheat and flour and some other lines which have since been exempted.

As stated above, surtax was not charged on goods which were the produce of the United Kingdom or any British Commonwealth country except Canada, the Union o South Africa, Eire, Newfoundland, or India, on and after the 14th October, 1932, and the primage duty payable on Australian goods in lieu of surtax was also removed as from that date.

A primage duty of 3 per cent. was charged, as from the 31st July, 1931, on imports from all countries which were otherwise free of duty. Certain specified items were, however, exempted from primage duty.

The following is a list of the principal items which are free of duty (and in some cases are also exempt from primage duty) under the Customs Acts Amendment Act, 1934.

Free in any Case.—Live animals; barley (if to be used as stock-food); bran; pollard; seeds; vegetable butters or fats; currants; dates; figs; prunes; glucose and caramel; nuts, except walnuts; rice; acids, other than acetic; inorganic salts of metallic elements, and many other drugs and chemicals; certain surgical appliances; bags and sacks of jute, &c.; woolpacks; raw cotton; hatmakers' materials; buttons; needles and pins; wadding; cotton piece-goods for meat-wraps and cheese-bandages; umbrella-makers' materials; upholsterers' materials; coir, flax, and jute yarns; grindery; leather made from goat and kid skins; patent leathers; bricks, other than firebricks; marble in the rough; grindstones and whetstones; cinema films (subject however to film-hire tax); bookbinders' materials; cardboard and similar boards; parchment and greaseproof paper; printed books, papers, and music; beekeepers' apparatus; percussion caps, detonators, and explosives; hay-rakes, reapers and binders, mowers, and certain other agricultural implements; certain dairying machinery; sewing-machines; iron and other metal in ingots, pigs, or billets; fish and vegetable (other than linseed) oils; kerosene and other refined mineral oils not exceeding in specific gravity 0.860 at 60°F. (other than motor-spirits); waxes; cork; crude tanning materials; manures; skins and hides.

Free if British, but dutiable under General Tariff.—Bananas; oranges, mandarins, and grape-fruit; raisins; infants' and invalids' foods; mustard; salt; cocoa-beans; raw coffee; sago and tapioca; cornflour; macaroni; acetic acid; cream of tartar; disinfectants; chloroform and other anæsthetics; antiseptics; manufactured dyes; most surgical, dental, optical, and scientific instruments and materials; felt, cotton, linen, and canvas piece-goods; silk and artificial silk piece-goods; leather-cloth; oil baize; sewing, &c., cottons and threads; elastics; plain tape; tailors' lining materials; cotton, silk, and artificial silk yarns; plain tablecloths, towels, and similar plain articles; belting (other than leather); children's boots and shoes; gum boots; rubber hose; most rubber manufactures, except tires for motor-vehicles; sheet glass; lenses; watch-glasses; pianos and certain other musical instruments; gramophone records; artists' materials; paperhangings; sensitized surfaces; waxed paper; paper (other than wrapping) in large sheets or rolls; ball bearings; bolts and nuts; rivets and washers; buckles; chains; fire-engines, fire-extinguishers, and other fire-extinguishing appliances; adding and computing machines; typewriters; most electrical apparatus; measuring, testing, &c., appliances; sheep-shearing machines; tractors; artificers', &c., tools; machinery peculiar to industrial processes; iron and other metal in bars or sheets; wire and wire netting; metal cordage; rails for railways and tramways; under-carriage springs and metal fittings for vehicles; asphalt and bitumen; table chinaware.

As previously stated, it is impossible to give any account of the range of duties payable on all of the numerous tariff items, but the duties as at the end of 1949 on some of the principal commodities in general use are mentioned hereunder. It should be noted that, in addition, surtax or primage may also be payable.

Tea.—Tea in bulk, when of British origin, was placed on the free list as early as 1907, when the duty on foreign tea was fixed at d. per lb. In 1917 a duty of 3d. per lb. was imposed on British tea, the foreign rate being increased to 5d. per lb. British tea in bulk was again placed on the free list in 1923, and the duty on foreign tea reduced to 2d. Rates of 3d. and 5d. per lb. respectively were reinstated as from 31st July, 1931. On and after 26th July, 1948, a duty of 4d. per lb. was introduced on tea in bulk imported from most-favoured nations, and from the same date all tea imported under the British preferential tariff was exempted from surtax.

Sugar.—Sugar also was placed on the free list in 1907, prior to which the duty was ½d. per lb. Refined sugar of foreign origin was charged ½d. per lb. under the 1921 tariff, the rate being altered in 1923 to 5/16d. and in 1924 to ¼d., irrespective of origin. The duty on refined sugar was increased to ¾d. per lb. in 1931; and raw sugar, which is imported for refinement at Auckland, was made dutiable at d. per lb., or, alternatively, ½d. per lb. excise duty on manufacture. An additional d. per lb. on both refined and raw sugar was imposed as from 9th February, 1933.

Tobacco.—Prior to the imposition of special war-taxation in 1939, the duties on tobacco were as follows: Cigarettes, exceeding in weight 2½ lb. per 1,000, 10s. 6d. per lb.; cigarettes, not exceeding 2½ lb. per 1,000, 25s. 6d. per 1,000; cigars, 12s. per lb. under the British preferential tariff and 14s. or 16s. under the general tariff; manufactured tobacco, cut, 6s. 10d. per lb., and plug, 6s. 8d. per lb.; unmanufactured tobacco for the manufacture of cigarettes, 3s. per lb.; and unmanufactured tobacco for the manufacture of tobacco, cigars, or snuff, 2s. per lb. In order to assist in financing the expenses of the war, further duties, in addition to those set out above, and equal to 25 per cent. of the duties, were levied as from 27th September, 1939. As from 1st May, 1942, this war impost was replaced by the following specific duties additional to the ordinary revenue duties quoted above: Cigarettes, exceeding 2½ lb. per 1,000, 8s. per lb.; cigarettes, not exceeding 2½ lb. per 1,000, 20s. per 1,000; cigars, 8s. per lb.; tobacco, cut and plug, 7s. 2d. per lb.; tobacco, unmanufactured, for cigarettes, 9d. per lb.; tobacco, unmanufactured, for the manufacture of tobacco, 6d. per lb. As from 31st October, 1947, the duties on unmanufactured tobacco were consolidated and the one rate of 3s. 9d. per lb. now applies to all unmanufactured tobacco imported for manufacturing purposes in a bonded tobacco-factory. As from 26th July, 1948, surtax was removed from the duty on all cigarettes and unmanufactured tobacco imported from most-favoured nations or from any British Commonwealth country. A duty of ½d. British preferential tariff or ¾d. general tariff is levied on each sixty cigarette tubes or papers or the equivalent thereof. The excise duties on tobacco, &c., made in New Zealand are shown later under “Excise Duties.”

Alcoholic Beverages.—Prior to the imposition in 1939 of special taxation for war purposes, the rate of duty payable on most spirituous beverages was 40s. per proof gallon, except rum of foreign origin, which was dutiable at 44s. per proof gallon. Sparkling wine was liable to a duty of 10s. per gallon under the British preferential tariff, 9s. 6d. under the trade agreement with the Union of South Africa, and 13s. or 15s. under the general tariff, and still wines to 4s. and 6s. respectively. Australian and South African still wines were liable to a duty of 5s. 6d. per gallon. The duty on imported beer was Is. 9d. per gallon under the British preferential tariff, and 3s. under the general tariff. In order to assist in financing the expenses of the war, further duties, in addition to those set out above, and equal to 15 per cent. of the duties, were levied as from 27th September, 1939; these were increased to 50 per cent. as from the 1st May, 1942, except in the case of beer, on which the additional duty is 1s. 3d. per gallon.

On 26th July, 1948, rum, brandy, and gin imported from British Commonwealth countries and most-favoured nations were exempted from surtax and a special most-favoured-nation rate of 15s. per gallon (including the additional 1942 duty) was established for champagne. The excise duty on beer produced in New Zealand is given under “Excise Duties.”

Apparel.—Most apparel pays duty at the rate of 20 per cent. or 25 per cent. under the British preferential tariff and 65 per cent. under the general tariff. The duties on apparel of Canadian and Australian origin vary from the British preferential rates to 40 per cent., 45 per cent., and 55 per cent.

Timber.—Certain types of special timbers and Australian hardwoods, if imported in logs, or rough sawn or rough hewn, are admitted free. Some species of oak timber are free of duty under the British preferential tariff, and dutiable at 6s. per 100 sup. ft. under the general tariff. Other kinds of timber, such as Douglas fir (Oregon pine), redwood, Baltic pine, are subject to the following rates: Logs, round, unworked, 25s. per 100 cubic ft; rough sawn or rough hewn, 7s. 6d. or 9s. 6d. per 100 sup. ft. under the British preferential tariff, and 9s. 6d. or 11s. 6d. under the general tariff; dressed, 19s. per 100 sup. ft. British preferential tariff, and 21s. general tariff. As from 26th July, 1948, the following special rates were fixed in respect of imports from most-favoured nations and in each case surtax was removed from the British preferential rate: redwood and Douglas fir, rough sawn or rough hewn, in large sizes, 8s. 6d. per 100 sup. ft.; Douglas fir, rough sawn or rough hewn, in smaller sizes, 10s. 6d. per 100 sup. ft.; Douglas fir and hemlock, dressed, £1 per 100 sup. ft. On 27th May, 1950, these concessional rates were applied to all coniferous timbers.

Motor-vehicles.—Motor-vehicles imported in an unassembled or completely knocked-down condition are dutiable at 5 per cent. under the British preferential tariff, 40 per cent. under the most-favoured-nation tariff and 50 per cent. under the general tariff. Assembled motor-vehicles are subject to a duty of 15 per cent. if admissible under the British preferential tariff, 50 per cent. under the most-favoured-nation tariff and GO per cent. if liable to the general tariff. Special rates apply to vehicles of Canadian origin.

Tires for Motor-vehicles.—Previously dutiable at 10 per cent. ad valorem under the British preferential tariff and 40 per cent. under the general tariff, these were in 1934 made subject to a duty based on the weight of the tires. Pneumatic rubber tires for motor-vehicles, inner tubes of rubber therefor, and moulded rubber strip for repair of such tires are now dutiable at 2½d. per lb. under the British preferential tariff and 8d. per lb. under the general tariff. Solid rubber tires are liable to a duty of 1d. per lb. and 4d. per lb. under the British preferential and general tariffs respectively.

Motor-spirits.—Towards the end of 1927 the Motor-spirits Taxation Act of that year imposed a duty of 4d. per gallon (increased in 1930 to 6d.) on motor-spirits. The proceeds of this tax were devoted to roading purposes. In 1931 and 1933 an increase in duty of 2d. per gallon in each year was made, and an additional 4d. per gallon duty was imposed as from 2nd August, 1939. The total duty on motor-spirits is now 1s. 2d. per gallon, plus a surtax of one-twentieth of the duty on foreign.

PROHIBITED AND RESTRICTED IMPORTS.—Full particulars of the goods which are prohibited or restricted from being imported into New Zealand are contained in the publication entitled “The Customs Tariff of New Zealand.”

The Import Control Regulations 1938 (made by Order in Council of 5th December, 1938) prohibit the importation of any goods except in pursuance of a licence under the regulations or of an exemption granted by the Minister of Customs. A considerable number of items have been exempted from import licensing during 1950 and early 1951. (See page 948.)

EXCISE DUTIES.—An important excise duty is that on beer, which up to 1915 was charged at the rate of 3d. per gallon. In that year the beer duty was altered so as to increase according to the specific gravity of the worts used, the rate being 3¾d. per gallon when the specific gravity did not exceed 1,047, and increasing by 1/16d. per gallon for every unit of specific gravity up to 1,055, and by ⅛d. thereafter. On the 2nd August, 1917, the minimum rate of duty for beer was increased from 3¾d. to 4¾d. per gallon, and further (on the 15th September, 1917) to 5¾d., with a maximum of 6d. per gallon. In 1921 a rate of 11½d. per gallon (increased to 1s. in 1930, and to 1s. 6d. in 1931) was imposed where the specific gravity of the worts used did not exceed 1,047, the rate being increased by 1/16d. for every unit of specific gravity above 1,047. The basic rate of excise duty on beer was reduced from 1s. 6d. to 1s. 3d. per gallon by the Customs Acts Amendment Act, 1934, but was increased to 1s. 9d. per gallon as from 2nd August, 1939. In order to assist in financing the expenses of the war, a further increase to 2s. per gallon was made as from 27th September, 1939. The duty was again increased on the 11th May, 1942, when provision was also made for a lower alcoholic content. When the specific gravity of the worts was 1,036 the new duty was 3s. per gallon, rising by 1d. for every unit of specific gravity above, and falling by 1d. for every unit below, 1,036, but subject to a minimum of 2s. 3d. per gallon. These duties were further amended as from 22nd August, 1947, by abolishing the reduction of 1d. in the basic duty for every unit of specific gravity below 1,036, so that the duty is now 3s. per gallon where the specific gravity of the worts does not exceed 1,036, increased by 1d. for every unit of specific gravity above 1,036. The specific gravity of distilled water at 60° F. is taken as 1,000, and the specific gravity of the worts is determined in relation thereto.

Prior to the introduction of special taxation for war purposes, out tobacco was charged an excise duty of 4s. 6d. per lb.; other tobacco, 4s. 4d. per lb. Cigars and snuff paid 6s. per lb., and the excise duty on cigarettes made in New Zealand was 13s. 6d. per 1,000 on cigarettes not exceeding in weight 2½ lb. per 1,000, and 5s. 6d. per lb. on cigarettes over 2 lb. per 1,000. A war surcharge of 25 per cent. of the excise duty on tobacco, cigars, cigarettes, and snuff was levied as from 27th September, 1939, but this was replaced on the 1st May, 1942, by additional taxation similar to that imposed on imported tobacco, &c. (see page 989). An excise duty of ½d. is levied on each sixty cigarette tubes or papers or the equivalent thereof.

The Customs Acts Amendment Act, 1931, imposed an excise duty of ½d. per lb. (increased to 1d. per lb. from 9th February, 1933) on sugar manufactured in New Zealand.

Excise duties were formerly levied direct on certain manufactures the preparation of which involved the use of a considerable proportion of spirits. In lieu of excise duty on the finished manufactured article, however, a special schedule of duties has been provided since 1921 on imported alcohol used in manufacturing these articles in licensed warehouses. The present rates are: On alcohol used in the manufacture of—perfumed spirits, 36s. per proof gallon; toilet preparations, 34s.; culinary and flavouring essences, 20s.; medicinal preparations containing more than 50 per cent. of proof spirit, 4s. 6d. per gallon. In similar medicinal preparations containing less than 50 per cent. the alcohol used is duty-free.

EXPORT DUTIES.—The Gold Duty Act of 1858, amended from time to time, first imposed an export duty on gold. Under the Gold Duty Abolition and Mining Property Rating Act of 1890, the export duty on South Island gold was replaced by a system of rating mining property. The consolidating Gold Duty Act of 1908 maintained an export duty of 2s. per ounce of 20 carats fineness on gold produced in or exported from the North Island. A further export duty of 6d. per ounce (on gold of New Zealand origin only, and exclusive of gold produced by alluvial or dredge mining) was levied by the Mining Act of 1926, and this additional duty applied also to South Island gold. The Customs Acts Amendment Act passed in February, 1933, imposed an additional export duty of 12s. 6d. per ounce troy weight of gold of the fineness of 20 carats and upwards, and covered all gold, with certain minor exceptions, wherever produced or exported. Provision was made for reduction, by Order in Council, of the rate of duty in the event of a reduction in the value of gold in New Zealand. In order to assist in financing the expenses of the war, a further duty was imposed as from 27th September, 1939, of an amount equal to 75 per cent. of the excess of the London market value of gold (expressed in New Zealand currency), as on the date when the gold was laden upon the exporting ship or when it was posted to an overseas address, over the value of that gold if it was computed at the rate of £9 5s. 8d. (New Zealand currency) for every ounce troy weight of gold of the fineness of 24 carats. This percentage was reduced to 40 per cent. as from 7th December, 1945, and on the 16th August, 1946, the remainder of this additional duty was removed. On gold exported after 19th August, 1948, the duty of 12s. 6d. per ounce imposed in 1933 was also removed, and the duties levied under the Gold Duty Act, 1908, and the Mining Act, 1926, were in turn abolished in October, 1949. There are therefore now no export duties on gold.

An export duty was also imposed on timber (white-pine and kauri) by Acts of 1901 and 1903, and still operates. The present rates of 5s. per 100 superficial feet on logs, and 3s. or 5s. per 100 superficial feet on flitches, were imposed by the Timber Export Duty Order of 23rd June, 1937. This duty is not payable in respect of sawn timbers.

The Customs Department collects the levies imposed on hides and honey exported. The proceeds (less expenses of collection) are, however, handed over to the respective Boards set up to control the export, &c., of these commodities in the interests of the producers. The Wool Industry Act, 1944, provides for a levy on all wool exported or delivered to a wool-manufacturer for use in New Zealand and the proceeds, less cost of collection, &c., are payable to the New Zealand Wool Board established under the Act, to enable it to carry out its functions. At the present time, however, the provisions in regard to the payment of the levy are suspended, but an equivalent amount is received by the Board from the contributory charge imposed by the Wool Disposal Act, 1945 (see Section 18A). Prior to the passing of the Wool Industry Act, 1944, a similar levy was payable under the authority of the Wool Industry Promotion Act, 1936, on wool exported only.

CUSTOMS REVENUE.—In the earlier years of New Zealand's history the revenue derived from Customs and excise duties produced a greater proportion of the total revenue from taxation than it does to-day. For a considerable period prior to 1914, there was a constant tendency for this proportion to decrease, and the taxation legislation of the 1914–18 war period temporarily accelerated the movement. From 1921–22 to 1925–26 the percentage rose continuously, but did not regain its former proportions. A gradual decline then commenced and, with one slight interruption. (1936–36) continued up to and including 1945–46. The low percentages following the year 1938–39 were the result of the huge increase in taxation imposed for war purposes, only a small proportion of which was derived from Customs and excise duties. The amount of war taxation received by way of Customs and excise duties in 1945–46 was only £4,574,021 out of a total war taxation of £51,416,847. The higher figures shown in the last four years is accounted for by a substantial increase in dutiable imports, particularly so in the year ended 31st March, 1948. The figures for the last twenty years are as follows:—

Year Ended 31st March,Total Taxation.Customs and Excise Duties.
Amount.Percentage of Total Taxation.
 ££Per Cent.
193118,880,8098,181,07643.33
193217,407,8296,545,42837.60
193319,705,6766,785,64134443
193421,473,4067,140,47833.25
193524,739,4098,094,60532.72
193625,478,5988,876,20334.84
193731,181,60310,340,83833.16
193836,798,97111,737,17031.90
193937,797,90411,727,22431.03
194044,522,02811,734,78426.36
194161,360,84011,258,37018.35
194268,163,25610,622,09215.58
194387,940,84412,342,11514.03
1944100,839,48413,922,57413.81
1945108,681,81414,869,44913.68
1946114,954,87315,682,63713.64
1947113,119,04619,970,49217.65
1948122,275,91128,794,93223.55
1949130,440,24923,666,86018.14
1950135,556,31926,296,87319.40

The figures for Customs and excise duties exclusive of tire-tax, and the highways proportion (6d. per gallon) of the motor-spirits tax—two classes of duties collected through the Customs and paid to the Consolidated Fund, sums at least equal to these amounts being allocated for road-maintenance purposes. Such taxation is, however, included in total taxation. Figures given under the heading of Customs and excise duties include for 1939–40 and subsequent years the amounts received on account of additional rates imposed on certain commodities for war purposes. Most of these additional rates are still in operation.

The Customs and excise duties received during the last three financial years available are shown in more detail in the next table. The figures have been rounded off to the nearest thousand and are provisional. Primage duties and surtax are included, but not tire-tax or the highways proportion of motor-spirits tax, which do not really represent Customs taxation, although levied on imports and for the sake of convenience collected through the Customs. The additional revenue received as the result of wartime increases in the rates and now incorporated in the tariff are included.

1947–48.*1948–49.*1949–50.*

* Provisional.

Customs Duties—£££
  Wines and spirits1,023,0001,097,0001,440,000
  Cigars, cigarettes, snuff, and tobacco3,117,0001,628,0001,688,000
  Motor-spirits3,918,0004,075,0004,570,000
  Other duties, including primage and surtax11,093,0006,604,0007,259,000
    Totals, Customs duties19,151,00013,404,00014,957,000
Excise Duties—   
  Alcohol used in perfumed spirit, &c., in New50,00044,00045,000
  Zealand   
  Cigarette papers and tubes65,00046,00065,000
  Tobacco, cigars, cigarettes, snuff, New4,443,0004,902,0005,506,000
  Zealand manufactured   
  Beer, New Zealand4,404,0004,555,0004,822,000
  Sugar682,000716,000902,000
    Totals, excise duties9,644,00010,263,00011,340,000
    Grand totals, Customs and excise duties28,795,00023,667,00026,297,000
Revenue per head of mean population—£  s.  d.£  s.  d.£  s.  d.
  From Customs duties10  11  37  4  107  18  2
  From excise duties5  6  55  10  105  19  11
    Totals15  17  812  15  813  18  1

PREFERENCE AND RECIPROCITY.—Preference to British Commonwealth countries in respect of certain commodities was provided for in the earliest tariff in force in New Zealand—that introduced in 1841. The amended tariff of 1844 involved the dropping of this preference to British goods, but two years later preference was again introduced.

The first definite attempt at reciprocity was made in 1870, when the Colonial Reciprocity Act gave power to the Government to make reciprocal agreements with the Australian States, including Tasmania; but this Act failed to receive the Royal assent and consequently lapsed.

In 1895, however, the Customs Duties Reciprocity Act received the Royal assent, and ratified an agreement which had been tentatively proposed with South Australia, besides giving power to the Government to make further agreements with the other Australian States. In 1807 the New Zealand and South African Customs Treaty was negotiated. A tariff agreement with the Australian Commonwealth has been in operation since 1922, and with Canada since 1932.

Imperial preference proper was introduced in New Zealand by the Preferential and Reciprocal Trade Act, 1903, which followed the lead given by Canada. At first only a few items were covered by the extra duties levied upon goods of foreign origin, but the Tariff Act of 1907 extended this additional preferential duty to a great number of items. The effect of the 1921, 1927, 1930, and 1934 tariffs has been to widen the disparity in the duty as between goods of British Commonwealth countries and those of foreign origin. Under the Ottawa agreement, New Zealand undertook to preserve the existing margins of preference on United Kingdom goods where the margin of preference did not exceed 20 per cent., and where the margin exceeded that figure not to reduce it below 20 per cent. without the consent of the Government of the United Kingdom. In the tariff of 1934, where reductions in duty were made under the British preferential tariff, the rates of duty under the general (foreign) tariff were, except in a few cases, retained.

The following are the classes of goods which are deemed to be the produce or manufacture of countries and which are entitled to be entered for duty at British preferential rates:—

  1. Goods wholly the produce of such countries:

  2. Goods wholly manufactured in such countries from unmanufactured raw material and/or from one or more of the imported partly manufactured raw materials which are enumerated in the regulations:

  3. Goods partially manufactured in such countries, provided that the final process of manufacture has been performed in such countries, and also that the expenditure in material produced in such countries and/or labour performed within such countries in each and every article is not less than one-half of the factory or works cost of such article in its finished state.

The conditions applying to British Commonwealth countries, the products of which are admissable under the British preferential tariff pursuant to agreements made by New Zealand with such countries, may be varied to suit the provisions of such agreements.

Prior to the 1st April, 1926, the minimum mentioned in paragraph (c), which is now one-half, was one-fourth.

In the calculation of the proportion of produce or labour none of the following items is to be included or considered:—

  1. Manufacturer's profit, or the profit or remuneration of any trader, agent, broker or other person dealing in the article in its finished condition:

  2. Royalties payable in respect of the finished goods:

  3. The cost of outside packages or any cost of packing the goods thereinto:

  4. Administrative and general office expenses:

  5. Any cost of conveying, insuring, or shipping the goods subsequent to their manufacture:

  6. Any other charges incurred subsequent to the completion of the manufacture of the goods.

Tea to be entitled to be entered at British preferential rates must have been grown in some part of the British Commonwealth, and the final process of manufacture must also have been performed in some country of the British Commonwealth.

Certain imports from Australia and Canada pay more than corresponding items from other Commonwealth countries.

Reciprocity with the Union of South Africa.—As already stated, there was inaugurated in 1907 a reciprocal arrangement with the Union of South Africa whereby products of that country, when imported direct, were admitted into New Zealand at reduced rates of duty, in return for similar concessions granted by South Africa in respect of New Zealand products. This agreement was revised in 1922, the duties on wines being increased, and tobacco being deleted from the list. A further alteration, whereby maize and dried apples were deleted from the list, was made in 1925. Dried fruits formerly came under the agreement, being admitted free when the general tariff was 4d. per pound and the British preferential rate 2d. On 1st January, 1934, however, the general tariff was reduced to 2d. and the British rate made free.

The items specially provided for in the agreement were feathers, fish, fresh fruit, dried fruit, tea, and wine; while in the case of all other dutiable goods, with the exception of spirits and tobacco, a reduction of 3 per cent. of the duty payable was made.

The legislation giving effect to the arrangement with the Union of South Africa was revoked by the General Agreement on Tariffs and Trade Act, 1948, although that Act provides for the continuation of most of the concessions previously granted.

The following table shows the merchandise trade with the Union of South Africa during the eleven years ended in 1949.

Year.Merchandise Imports.Merchandise Exports to Union of South Africa.
From Union of South Africa.Of Union of South Africa Origin.

* Provisional.

† Not available.

 £££
193976,57579,54060,095
1940112,478118,14221,699
1941135,571131,16124,205
1942207,426210,17319,521
194391,27393,38926,882
194482,35686,88148,033
1945*232,109241,571184,721
1946*221,511220,79558,776
1947*494,169498,68565,064
1948*753,936725,81889,103
1949*476,802132,934

Reciprocity With Australia.—A trade agreement between Australia and New Zealand was first entered into on the 11th April, 1922. Under this agreement each country granted to goods of the other the benefits of its British preferential tariff, except with regard to certain classes of goods on which special rates were fixed.

During 1933 a Minister of the Commonwealth Government visited New Zealand to discuss the commercial relations between the two countries. A provisional agreement was reached in April, 1933, and confirmed by the Trade Agreement (New Zealand and Australia) Ratification Act, 1933. The now agreement came into operation from 1st December, 1933.

Under the agreement lower duties than those under the British preferential tariff on New Zealand products entering Australia are provided for on many lines, the chief of which are: Stilton cheese; fresh and frozen fish and fish pastes; dried peas; hay; chaff; fresh, smoked, and preserved meats; onions; lucerne-seed; wine; furs; hats; caps; floor-rugs; various agricultural and dairying implements; whale oil; casein; sugar of milk; and timber.

The agreement provides that goods which are partially manufactured in Australia or New Zealand shall not be regarded as the produce or manufacture of Australia or New Zealand unless the expenditure in material produced in either country and/or labour performed within either country represents not less than one-half of the factory or works cost of the goods in their finished state.

Merchandise trade between New Zealand and Australia during the eleven years ended in 1949 has been as follows:—

Year.Imports from Australia.Imports of Australian Origin.Exports to Australia.

* Provisional.

† Not available.

 £££
19396,738,9886,419,4692,256,007
19408,219,3677,817,6012,159,339
19418,865,8128,023,6982,400,266
19428,789,8048,142,2732,717,619
194310,354,78610,160,3802,849,125
194410,483,55510,277,3733,092,981
1945*8,642,6608,319,6314,353,977
1946*10,723,28210,419,7683,627,323
1947*15,476,83414,942,1544,095,981
1948*14,701,83514,194,1723,955,960
1949*15,314,8303,753,426

Article IX of the agreement provides that, where with respect to any goods not specially enumerated in the agreement the rate of duty thereon under the New Zealand British preferential tariff is less than the duty under the Australian British preferential tariff, the New Zealand Government may request the Australian Government to admit into the Commonwealth New-Zealand-produced goods of such class at the rate of duty chargeable on goods of that class under the New Zealand British preferential tariff. If within three calendar months after the receipt of the request the Australian Government does not comply therewith, the New Zealand Government may, without further notice, impose on such goods of Australian origin a rate of duty not being greater than the rate of duty for the time being in force in Australia on the like goods under the Australian British preferential tariff. A similar provision is made with respect to the admission of Australian-produced goods into New Zealand.

The rates of duty payable on Australian goods imported into New Zealand and not specifically mentioned in the agreement are automatically affected by changes in the New Zealand British preferential tariff. A modification of the agreement was made in May, 1935, whereunder the duty on certain Australian goods which would otherwise have been reduced or removed from 1st June, 1936, following changes made in the British preferential tariff by the Customs Acts Amendment Act, 1934, remained unaltered.

The duties on many Australian goods were increased as from 1st March, 1938, by an Order in Council made on the 26th February, 1938, while the duties on fresh grapes, canned pineapples, slippers, boots and shoes, and certain types of refrigerating units were reduced as from 26th July, 1948, by the Trade Agreement (Australia) Order 1948.

Reciprocity with Canada.—From October, 1925, reciprocal trade arrangements with respect to certain items of Canada - New Zealand trade were in force, but ceased in May, 1930.

Negotiations between the Canadian and New Zealand Governments bore fruit in a trade agreement which came into force in both countries for a period originally of one year, as from the 24th May, 1932. This agreement has been extended from time to time, and is now to continue in force indefinitely.

By Order in Council dated 21st July, 1948, the duties on canned fish and certain types of refrigerating unite were reduced as from 26th July, 1948, and the duties on slippers, boots and shoes, and motor-vehicles were consolidated by the absorption of surtax into the ad valorem rate.

Under the present Canadian tariff on New Zealand produce are included, inter alia: Butter, 5 cents per lb.; cheese, 1 cent per lb.; and lamb and mutton, ½ cent per lb.; while sausage-casings, hides and skins, wool, apples, seeds, kauri-gum, and phormium fibre are amongst commodities admitted free.

The rates of duty payable in New Zealand on certain imports from Canada are as under: Canned fish, 1½d. per lb.; silk or artificial silk stockings, 55 per cent.; electric cocking and heating appliances, 30 per cent.; certain agricultural implements, 35 per cent.; timber, 7s. 6d. or 9s. 6d. (rough sawn) and 19s. (sawn and dressed) per 100 sup. ft. Canadian goods not mentioned in the agreement enter New Zealand at the ordinary British preferential rates of duty. In some instances where the British preferential rates of duty were reduced by the 1934 tariff the rates on certain Canadian goods mentioned in the agreement were also reduced to the British preferential level. Special duties are payable on motor-vehicles of Canadian origin, these duties varying according to the Canadian content.

Other Trade Arrangements.—New Zealand is also a party to certain commercial treaties, conventions, or arrangements with countries other than those referred to above. Particulars of the trade agreements with certain European countries are contained in the 1940 and previous issues of the Year-Book, but, owing to the war with Germany and its subsequent effects, these agreements became largely inoperative. In certain instances the agreements referred to became applicable to New Zealand automatically as a member of the British Commonwealth, while in others New Zealand became a party by signifying her willingness to adhere to treaties negotiated by the United Kingdom. New Zealand also in some cases entered into agreements with foreign countries by direct negotiation with those countries, and in others the United Kingdom acted for New Zealand in making trade agreements on her behalf. In some instances the trade involved is insignificant.

By Order in Council of the 21st February, 1934, the duties and exemptions from duty provided for in the Trade Arrangement (Belgium and New Zealand) Ratification Act, 1933, were applied to similar goods being the produce or manufacture of the following countries: Argentina, Brazil, China, Czechoslovakia, Egypt, Finland, Germany, Hungary, Italy, Japan, Norway, and Spain. Sweden was added to the list of countries by Order in Council of the 7th June, 1935, and Greece by Order in Council of 22nd October, 1936. By an Order in Council of the 28th October, 1941, Japan was eliminated from the above list, and after a further Order in Council of the 17th October, 1945, had taken effect, four more countries were eliminated—viz., Finland, Germany, Hungary, and Italy.

Direct trade arrangements were also entered into with the Netherlands and Switzerland.

The Customs (Tariff Preference and General) Regulations, 1936, set out the classes of goods from foreign countries which may be entered at concessional rates of duty applying to any such countries as a result of treaty obligations between New Zealand and such countries, viz:—

  1. Goods wholly the produce of such a country:

  2. Goods wholly manufactured in such a country from unmanufactured raw materials:

  3. Goods partially manufactured in such a country, provided (1) that the final process of manufacture has been performed in that country or in any British country the produce or manufactures of which are entitled to be entered under the British preferential tariff otherwise than pursuant to any agreement or arrangement made between New Zealand and such country; (2) that the expenditure in material the produce of that country, and/or in labour per formed in that country, on each and every article is not less than one-half of the factory or works cost of such article in its finished state.

GENERAL AGREEMENT ON TARIFFS AND TRADE (GENEVA).—At its first meeting in February, 1946, the Economic and Social Council of the United Nations set up a Preparatory Committee to prepare the ground for an International Conference on Trade and Employment, and New Zealand was appointed a member.

At the Committee's first session in London during October and November, 1946, a provisional draft charter for an International Trade Organization was adopted, (though the final draft completed by March, 1948, bus not been ratified by any country) and the important step was taken of drawing up a procedure for the negotiation of a multilateral trade agreement embodying tariff concessions by the participating countries.

These tariff negotiations took place during the second session of the Preparatory Committee in Geneva in 1947, and the concessions given by each country were embodied in schedules to a General Agreement on Tariffs and Trade. The tariff negotiations themselves were bilateral but all the concessions were applied multilaterally, so that New Zealand receives the benefit of reductions made by all participants, and, conversely, New Zealand's concessions apply to all the other countries which took part. In addition, existing commitments required that they should be extended to several non-participating countries to which New Zealand had already granted most-favoured-nation treatment.

Concessions are of two kinds—actual reductions of duties and bindings of duties against increase.

The Agreement was applied provisionally by New Zealand on 26th July, 1948.

The tariff concessions made by New Zealand are set out in the First Schedule to the General Agreement on Tariffs and Trade Act, 1948, and, in more detail, showing comparisons with the rates previously ruling, in a pamphlet published by the Government Printer under the title “General Agreement on Tariffs and Trade: Rates of duty proposed under New Zealand Customs Tariff to give effect to the General Agreement on Tariffs and Trade.”

The existing arrangements with Belgium and the Netherlands have been superseded by the General Agreement.

The countries to whose products the concessional rates of duty apply (i.e., the most-favoured nations) were proclaimed in the General Agreement on Tariffs and Trade Provisional Application Order, 1948, and are as follows: Argentina, Belgium (including overseas territories) Brazil, Chile, China, Cuba, Czechoslovakia, Egypt, France (including overseas territories), Greece, Lebanon, Luxemburg, Netherlands (including overseas territories), Norway, Spain, Sweden, Syria, United States of America. By virtue of an existing trade arrangement, most-favoured-nation rates are also applied to certain products of Swiss origin.

Some of the more important products of those countries in respect of which concessions have been made are as follows: onions; tea; raw coffee; raisins; oranges; certain canned fruits; spices; sago; matches; tapioca; cornflour; cigars; cigarettes; tobacco; rum; brandy; gin; wines; flavouring essences; surgical and dental instruments; carpets; linoleum; lace; sowing cotton; woollen piece-goods; belting for machinery; leather manufactures; chinaware; glassware; clocks; fancy goods; toys; sporting requisites; certain musical instruments; gramophones; cameras and photographic goods; toilet preparations; tobacco pipes; paperhangings; certain types of paper; adding and accounting machines; cash registers; typewriters; duplicating-machines; certain lawn-mowers, power operated; engines for motor-cycles, other motor-vehicles, and tractors; certain electrical machinery and appliances; certain mining and quarrying machinery; tractors; certain industrial machinery; refrigerators; hardware; wire; certain pipes and tubes: wire netting; bicycles; motor-cycles; motor-vehicles; certain timbers.

Further negotiations were conducted in 1949 with certain additional countries which have now become contracting parties to the General Agreement, and most-favoured-nation rates of duty now apply to the products of those countries, which are: Denmark, Dominican Republic, Finland, Haiti, Italy, Liberia. Nicaragua, Republic of United States of Indonesia, and Uruguay.

Chapter 10. SECTION 10–SHIPPING AND TRADE OF PORTS

Table of Contents

THE tonnage of all shipping arriving at or departing from New Zealand ports is recorded by the Customs authorities. On the arrival or departure of an overseas merchant vessel, foreign or coastwise, the master or owner must “enter” or “clear” the vessel with the Collector of Customs of the port concerned. The same procedure is followed in recording the movement of coastal shipping.

The figures given in this section include all registered merchant vessels trading at New Zealand ports: thus they exclude naval vessels when engaged in their normal duties, private launches, lighters engaged in loading or unloading vessels in roadsteads, trawlers and other fishing vessels, and yachts when not employed in trading. Merchant vessels used in the transport of troops are included.

OVERSEAS SHIPPING.—In recording the following statistics only one entry and one clearance is counted for each voyage: at the first port of call and the port of final departure, regardless of the number of ports visited by the vessel while in New Zealand waters. Movements of overseas shipping between ports in New Zealand are treated as coastwise shipping.

However, statistics are also compiled (see page 213) showing the relative overseas trade of the various ports, wherein every overseas vessel is recorded, whether entered or cleared, overseas or coastwise.

The following table gives the number and net tonnage of overseas vessels entering and clearing New Zealand ports during the years 1939–49, distinguishing those entered and cleared “with cargo” from those “in ballast.”

Year.With Cargo.In Ballast.*Total.
Vessels.Tonnage.Vessels.Tonnage.Vessels.Tonnage.

* “In ballast” means (a) inwards— “having no cargo for discharge in New Zealand”; (b) outwards— “having no cargo loaded in New Zealand.”

Entered
19395572,415,35277549,5856342,964,937
19405182,172,55782662,8106002,835,367
19414081,712,45398604,6755062,317,128
19423631,414,632155883,5075182,298,139
19433201,230,295161834,1994812,064,494
19442951,067,532151721,1554461,788,687
19452751,096,385138722,5744131,818,959
19463441,485,419118656,1074622,141,526
19474141,812,70352245,2884662,057,991
19484461,857,82560279,6565062,137,481
19495092,186,69254285,9645632,472,656
Cleared
19394322,142,675217876,9846493,019,659
19403891,917,720212916,7796012,834,499
19413231,539,473185769,8415082,309,314
19422921,319,805225969,6565172,289,461
19432501,019,3902221,026,8884722,046,278
1944227918,463230864,5234571,782,986
19452551,108,877158727,8504131,836,727
19462841,343,658151689,1694352,032,827
19472961,285,440167769,2434632,054,683
19483301,420,401164721,9104942,142,311
19493821,703,993174740,9755562,444,968

The ballast figures include vessels embarking and disembarking passengers only, or entering for, or clearing with, bunkers and stores only, as well as the normal ballast movement.

Ports of Arrival and Departure.—The next table shows the extent to which various ports were made the first port of arrival or the last port of departure by overseas vessels during the last three years. The figures should not be regarded as indicating the relative overseas trade of the various ports.

Port.Entered.Cleared.
1947.1948.1949.1947.1948.1949.
 Net Tons.Net Tons.Net Tons.Net Tons.Net Tons.Net Tons.
Auckland1,137,3261,026,8081,148,212767,735832,541923,480
Tauranga  656  5,044
Napier44,92382,81469,595114,99196,249120,734
New Plymouth78,87759,065106,77673,64162,27556,552
Wellington533,891697,353840,485672,035665,190818,123
Picton     3,206
Nelson   29,30320,68217,296
Westport 166   1,860
Greymouth963321  3,8132,699
Lyttelton187,010157,340183,743179,706200,871231,766
Timaru7,23011,48120,80413,34227,42713,119
Dunedin48,28973,99662,661149,949163,486206,882
Bluff19,48228,13739,72453,98169,77744,207
  Totals2,057,9912,137,4812,472,6562,054,6832,142,3112,444,968

Figures for the last three years show that 81 per cent. of overseas vessels (on a tonnage basis) arriving in New Zealand made Auckland or Wellington their first port of entry.

For the same period, and again on a tonnage basis, 70 per cent. of overseas vessels finally departing from New Zealand were cleared from either Auckland or Wellington.

Direction of Overseas Shipping.—Particulars of the number and net tonnage of vessels entered and cleared between New Zealand and various countries during 1948 and 1949 are given in the following table.

1948.1949.
Entered.Cleared.Entered.Cleared.
No.Tonnage.No.Tonnage.No.Tonnage.No.Tonnage.
United Kingdom78478,149137792,43783531,641131856,209
Republic of India517,805640,946521,907517,771
Pakistan        
Seychelles Islands    13,441  
Federation of Malaya21101,074837,8801672,0001053,200
Colony of Singapore        
Union of South Africa421,614  837,064  
Canada1572,622850,4321897,8111058,154
Australia193655,447191609,602225857,139227774,430
Fiji2363,5701229,6562042,4412352,548
Gilbert and Ellice Islands  26,120520,874938,745
Nauru island1869,9561878,0832277,0262068,819
Tonga12714,696    
Western Samoa716,450611,12046,83136,378
Belgium  14,832412,40615,286
Bahrein Inlands746,198954,7951167,258744,169
Iran1688,28219101,06229150,7551998,478
Indonesia740,079420,6471056,8761687,639
Japan941,259210,85426,511211,698
Egypt515,282      
Panama Canal Zone14,38016,114    
United States of America34178,16128160,32137176,4031466,396
New Caledonia245144,896    
Tuamotu Archipelago1768,2181760,82124101,2972396,656
Other countries43158,4572056,99739132,97536108,392
    Totals5062,137,4814942,142,3115632,472,6565562,444,968

The net tonnage of all vessels entered in 1949 was 15.7 per cent. greater than in 1948, while the number of vessels was higher by 11.3 per cent. The tonnage entered from Australia in 1949 represented 34.7 per cent. of the total and was higher than from any other country. It is noted, however, that although there has been a considerable recovery in the last few years, figures of Australian–New Zealand shipping are still well below those immediately prior to 1939. The tonnage entered from the United Kingdom showed an increase in 1949 over the previous year of 11.2 per cent., while clearances for the United Kingdom were 8.1 per cent. above the 1948 figures. The tonnage of vessels entered from the United Kingdom, although noticeably lower than in pre-war years, has not decreased to the same extent as in the case of Australia. The number of vessels and the aggregate net tonnage entered from Iran were both above the 1948 figures, the latter by 70.8 per cent.

The next table shows the net tonnage of shipping between New Zealand and certain principal countries in 1939, and for the four years 1946–49.

Year.Australia.United Kingdom.United States of America.Canada.Pacific Islands.
Entered
 Tons.Tons.Tons.Tons.Tons.
19391,205,225674,994283,092197,908175,694
1946575,340445,084420,240125,235201,639
1947591,634416,824342,533137,267177,384
1948655,447478,149178,16172,622221,342
1949857,139531,641176,40397,811259,043
Cleared
 Tons.Tons.Tons.Tons.Tons.
19391,370,750733,257289,214144,731175,951
1946461,364779,348228,50354,938163,472
1947576,481772,882230,57044,717181,708
1948609,602792,437160,32150,432196,919
1949774,430856,20966,39658,154274,756

Nationality of Overseas Shipping.—The table following shows the nationality of vessels arriving in New Zealand during the years 1939 and 1945–49. It will be seen that in normal times British Commonwealth ships account for over 80 per cent. of the total overseas tonnage recorded, the 1949 percentage, in fact, rising to 88 per cent. The number of vessels registered in the United Kingdom represented 70 per cent. of the total tonnage recorded in 1949; the remaining British Commonwealth countries accounted for 18 per cent. and other countries for 12 per cent.

A feature of the table is the relatively small totals shown for shipping registered in New Zealand in the more recent years compared with 1939.

OVERSEAS SHIPPING INWARDS

(Thousand tons net)

Country of Registry.1939.1945.1946.1947.1948.1949.
British Commonwealth—      
  United Kingdom1,4991,1131,4741,4041,5051,739
  New Zealand609126110153141272
  Other British Commonwealth21612513186150175
    Cargo1,9747881,1281,4661,5841,912
    Ballast350576587177212274
      Total, British Commonwealth countries2,3241,3641,7151,6431,7962,186
      Percentage of total787580808488
Other—      
  Norway124883577790
  Netherlands664821167
  Panama 8950365644
  United States of America35825931430013592
  Remaining countries931419505768
    Cargo441308357346273288
    Ballast20014669686813
      Total, other countries641454426414341301
      Percentage of total222520201612
      Grand totals2,9651,8182,1412,0572,1372,487

TRADE OF PORTS.—The following matters dealing with the trade of ports are covered below: shipping tonnages, cargo statistics, transhipments, and value of imports and exports.

Shipping Tonnages.—This section deals with the tonnage recorded by the various ports in New Zealand and includes overseas and coastal shipping, irrespective of whether the former had been entered or cleared overseas or coastwise. Thus overseas vessels have been recorded as overseas arrivals and departures on every visit to a New Zealand port, instead of only at the first port of call and the final port of departure as under the earlier heading.

The movement of overseas and coastal vessels on the New Zealand coast is well illustrated in the following table, which gives the aggregate number and tonnage of the total calls made during each of the years 1939–49.

Year.Overseas Vessels.Coastal Vessels.Total.
Number.Net Tonnage.Number.Net Tonnage.Number.Net Tonnage.
19392,4909,766,22417,3654,756,02719,85514,522,251
19402,0827,826,04316,2614,583,52818,34312,409,571
19411,6175,018,64815,0174,342,04716,6349,360,695
19421,6665,491,68813,6103,786,53615,2769,278,224
19431,3794,526,54212,0504,007,17913,4298,533,721
19441,0833,729,63112,1613,981,70013,2447,711,331
19451,0883,827,78012,3693,756,87113,4577,584,651
19461,1914,774,61312,7703,709,35713,9618,483,970
19471,1444,966,08812,8084,528,94113,9529,495,029
19481,1734,857,98213,3334,579,30014,5069,437,282
19491,5285,939,29213,1174,298,38814,64510,237,680

Using the figures for 1939 as a standard pre-war guide to the volume of shipping at New Zealand ports, the war years showed a remarkable decline in the number of vessels and act tonnage, particularly in the overseas section. The 1944 figures for the latter represented a fall of nearly 57 per cent. in the number of vessels and 62 per cent. in tonnage. In addition to the large decrease in overseas arrivals in the country during the war period, as shown in the table on page 210, a contributory cause was the limited number of ports visited by overseas vessels, shipping, as a war necessity, being concentrated at the main ports.

Figures for the last four years show a substantial recovery in both the overseas and coastal trade of ports, although the coastal trade on this basis showed a decrease in 1949 as compared with 1948. This may be accounted for by the additional calls made by overseas vessels in 1949, thus lessening the need for transhipments. This assumption is supported by the transhipment figures quoted later in this section.

The following table shows the average number of calls made by overseas ships arriving in New Zealand, based on total arrivals and total entries in New Zealand ports.

Overseas Vessels.1939.1944.1945.1946.1947.1948.1949.
Total number entered New Zealand634446413462466506563
Total entries in New Zealand ports2,4901,0831,0881,1911,1441,1731,528
Average number of calls at New Zealand ports3.92.42.62.62.52.32.7

This table is only intended to show the reason for the fall in overseas shipping tonnage of ports, and not the actual average calls made. Many vessels—as, for instance, those engaged in the transport of timber and coal, and those merely touching at a New Zealand port while en route between Australia and America—call at only one port in New Zealand; on the other hand, vessels engaged in the United Kingdom trade, which, in the pre-war period, generally called at a number of ports, have curtailed their visits, as evidenced by the figures.

The following table shows for the three years 1947–49 the number and net tonnage of overseas vessels arriving at New Zealand ports, and covers vessels entered overseas or coastwise.

Port.1947.1948.1949.
Number.Tonnage.Number.Tonnage.Number.Tonnage.
Whangarei12,02846,7661118,566
Auckland3241,425,2583351,295,9014691,587,879
Tauranga  32,852128,837
Gisborne1738  2881
Napier51245,45046234,53559262,045
New Plymouth41212,15538183,05852270,490
Wellington2901,338,3503171,439,5883801,743,234
Picton    56,015
Nelson729,6131133,4931433,073
West-port93,57857974620
Greymouth71,11884,5992020,440
Lyttelton195837,720184776,320218913,793
Timaru36125,29927112,13345157,796
Oamaru  35,32811,430
Dunedin130553,207146574,810173680,664
Bluff52191,57446187,80263233,529
Totals1,1444,966,0881,1734,857,9821,5285,939,292

Overseas vessels are shown to have called at 13 ports in 1947, 14 in 1948, and 16 in 1949. In the pre-war years 1936–38, approximately 24 New Zealand ports were visited by overseas vessels. During the war years the concentration of overseas shipping at the main ports was most marked. This concentration, is still noticeable, though gradually lessening, over the last four years. This is demonstrated in the following table, which shows the percentages of overseas shipping tonnage recorded at the ports of Wellington. Auckland, and Lyttelton for the years 1939 and 1946–49. In 1939 these three ports handled 63.1 per cent. of the overseas shipping tonnage, as compared with 77.2, 72.6, 72.3, and 71.5 per cent. in the four years 1946 to 1949.

Port.1939.1946.1947.1948.1949.
 Per Cent.Per Cent.Per Cent.Per Cent.Per Cent.
Auckland27.330.328.726.726.7
Wellington24.530.527.029.629.4
Other North Island15.47.79.38.89.4
    North Island67.268.565.065.165.5
Lyttelton11.316.416.916.015.4
Other South Island21.515.118.118.919.1
    South Island32.831.535.034.934.5
    New Zealand total100.0100.0100.0100.0100.0

The table below shows for the years 1947–49 the total shipping traffic handled inwards at the ports referred to. Overseas and coastal vessels calling at more than one port in the course of a single voyage have been recorded as entered at every port visited.

Port.1947.1948.1948.
Number.Tonnage.Number.Tonnage.Number.Tonnage.
Parengarenga1184,8121305,2091668,467
Awanui1287,8291087,5761339,653
Mangonui557,357747,031565,907
Whangaroa13211,40616413,92815715,323
Russell1146,858664,827565,952
Hokianga403,040403,029322,394
Whangarei920100,1301,016116,408888110,777
Auckland4,4821,813,9734,5771,716,0264,7061,912,823
Onehunga9612,61411914,8997713,151
Raglan4640152,360173,591
Kawhia71,12068401160
Thames54313,33854411,51868818,092
Coromandel1512,6221212,9111226,252
Whitianga852,341761,705932,253
Tauranga11913,9529413,45510518,722
Whakatane10810,90212810,88710410,193
Opotiki545,747545,491484,959
Tokomaru Bay9816,53911619,3519818,932
Tolaga Bay286,5343710,823349,120
Gisborne13250,07316558,09815855,673
Napier245306,436259291,217259320,837
New Plymouth103239,617114211,857131303,372
Patea11912,156777,88811812,167
Wanganui26059,26427661,08925455,970
Wellington2,2293,005,0252,4023,073,2562,4743,267,890
Picton354161,386298149,503282140,580
Wairau705,4881339,6561098,184
Nelson803273,382901280,144850256,732
Motueka18516,10318816,83717015,593
Waitapu783,291713,158763,661
Westport251193,252223157,962172141,937
Greymouth177102,597164119,980136117,555
Hokitika1882814644161,122
Lyttelton7441,863,6348121,832,3438991,968,956
Akaroa  183  
Timaru114188,324131193,338149238,820
Oamaru5747,4126248,8116452,288
Dunedin255659,197276680,456293786,003
Bluff343246,287322253,275329298,672
Half-moon Bay13319,52313219,41312514,947
    Totals13,9529,495,02914,5069,437,28214,64510,237,680

In 1949 Wellington ranked as the first port of New Zealand as regards aggregate tonnage of shipping entered, followed by Lyttelton, Auckland, Dunedin, Napier, New Plymouth, Bluff, Nelson, and Timaru in that order.

It should be remembered in any comparison of port statistics of shipping tonnages that certain ports are termini of inter-Island passenger services, and this factor adds considerably to the volume of shipping traffic credited to these ports—viz., Wellington, Lyttelton, Picton, and Nelson.

Cargo Statistics.—In order to obtain statistics of the total trade of each port, a system of monthly returns from the various port authorities was instituted in 1922 showing under a number of headings the quantity of goods handled, distinguishing inwards and outwards cargo, coastal and overseas, and transhipments. The resultant statistics show on a tonnage basis the total trade of each port, including all exports, whether placed on the oversees vessel there, sent to a central port for shipment overseas, or despatched coastwire to another port for consumption in New Zealand. No figures were collected during the years 1943–45.

The following table gives a summary of the tonnage of cargo handled at all ports for the years 1940–42 and 1946–49.

Year.Inwards.*Transhipments.Outwards.*Total Manifest Tonnage.
Coastal.Overseas.Coastal.Overseas.

*Excluding transhipments.

 Tons.Tons.Tons.Tons.Tons.Tons.
19402,124,2052,269,300286,0362,094,7721,015,9818,076,330
19412,210,2701,903,044310,7142,173,675875,1937,783,610
19422,182, 6731,980,120350,4302,092,3381,137,4408,093,431
19462,062,8832,077,881209,9112,008,9711,112,8647,682,421
19472,114,9642,790,934231,6411,943,3891,099,1508,411,719
19482,034,8502,956,793264,0561,952,1141,180,3858,622,254
19491,922,3393,266,667227,5011,884,1671,108,1958,636,370

The next table shows for each port the total cargo inwards and outwards in 1949. The high proportion of transhipments in the case of Wellington is very noticeable.

Port.Inwards.*Transhipments.Outwards.*Total Manifest Tonnage.
Coastal.Overseas.Coastal.Overseas.

*Excluding transhipments.

 Tons.Tons.Tons.Tons.Tons.Tons.
Mangonui5,665  2,368 8,033
Russell898  312 1,210
Hokianga3,724  3,002 6,726
Whangarei51,2087,607800109,674 170,089
Auckland588,5781,383,47435,490250,790347,8272,641,649
Onehunga16,956 11028,56416545,905
Raglan6,451 16195 6,678
Kawhia156  209 365
Thames2,713  572 3,285
Tauranga12,6551,357 1,40512,82828,245
Whakatane18,225  16,105 34,330
Opotiki6,593  4,252 10,845
Tokomaru Bay4,068 5,0851,226 15,464
Tolaga Bay829  1,652 2,481
Gisborne47,036676718,373 66,099
Napier66,44661,35314,1259,799113,796279,644
New Plymouth38,996207,773 5,46377,099329,331
Patea1,282  19,376 20,658
Wanganui51,365  32,689 84,054
Wellington444,407904,457164,313290,268245,3492,213,107
Picton32,658  32,663 65,321
Wairau7,213  6,281 13,494
Nelson97,50215,5952,61264,479 182,800
Motueka7,181 4616,134 23,407
Waitapu4,227  1,316 5,543
Westport6,838  294,565 301,403
Greymouth13,843  243,5421,833259,218
Hokitika1,357  1, 861 3,218
Lyttelton206,500371,0171,296248,300114,027942,436
Timaru26,47015,252 62,14643,612147,480
Oamaru5,6314,908 26,495 37,034
Dunedin91,822269,9053,60169,54960,822499,300
Bluff50,61123,293 19,84990,837184,590
Half-moon Bay2,235  693 2,928
    Totals1,922,3393,266,667227,5011,884,1671,108,1958,636,370

In any consideration of these statistics it is advisable to note that the term “ton” does not invariably denote a weight of 2,240 lb. For a portion only of the goods handled is it practicable to obtain the actual weights involved. In other cases close approximations are made by applying uniform formulæ as to the number of bales, cases, sacks, &c., to the ton. In a few instances the tons are “short” tons of 2,000 lb. A considerable portion of trading goods, however, is recorded in “measurement” tons, 40 cubic feet of space being regarded as the equivalent of a ton. As the practice is uniform, comparisons from year to year are not appreciably affected, nor are comparisons between ports, unless there is a radical difference in the class of trade carried on, in which case recourse should be bad to consideration of items of trade. Since a much larger proportion of imports are in “measurement” tons, thus artificially swelling the figures, direct comparison of import cargo tonnage with export is invalid.

The penultimate column of the' preceding table shows the quantity of cargo placed on board the overseas vessels at the respective ports, and a table will be found on page 214 showing the number and tonnage of overseas vessels calling at each port. These tables give a good indication of the extent to which each port enters directly into the overseas trade of New Zealand. The following table shows for the year 1949 the total shipments from each port overseas and coastwise (including transhipments) of nine principal commodities exported overseas by New Zealand, and thus shows the extent to which the various ports handle overseas exports, although the goods may be sent outwards coastwise for transhipment at another port.

Port.Wool.Frozen Meat.Canned Meat.Butter.Cheese.Milk Products.Tallow.Hides, Skins, and Pelts.Seeds.All Other Goods.Totals.
 Tons.Tons.Tons.Tons.Tons.Tons.Tons.Tons.Tons.Tons.Tons.
Mangonui117  439  46 1,8022,368
Russell23      3 286312
Hokianga184  1,748210 136 104,198110,474
Whangarei935  5,270  5417 104,198110,474
Auckland34,05466,3508,684115,24715,61543,6437,6949,528532332,760634,107
Onehunga  74 144258 31628,34428,839
Kawhia209         209
Thames9     95 549572
Tauranga228     610 13,98914,233
Whakatane200  6,4431,440 218 8,00216,105
Opotiki210  2,422 2464116 1,3174,252
Tokomaru Bay1,5783,892    377251 2136,311
Tolaga Bay1,289        3631,652
Gisborne7,56054201935 9061,0522148,29518,380
Napier44,68355,6247602,6174702373,8243,9104425,551137,720
New Plymouth70329,141 13,21228,0093,6921,9451,815 4,04582,562
Patea    19,142 9  22519,376
Wanganui17,696  4818,385 6761,044 4,40732,689
Wellington56,97264,12829515,51947,9697,0265,5549,558952491,957699,930
Picton2,2713,004 98473 3052232426,16632,663
Wairau209       1555,9176,281
Nelson1,1861,562 838735724033673161,89767,091
Motueka126     1022416,01816,180
Waitapu199  818     2991,316
Westport      56  294,509294,565
Greymouth      71  215,304245,375
Hokitika         1,8611,861
Lyttelton22,69634,4863941,646874 5, 6396,9216,848284,120363,623
Timaru12,42420,3015420661712,4086371,57766,754105,758
Oamaru    2  45526,43426,495
Dunedin20,87720,4671041381,4805081,3541,9524,29482,798133,972
Bluff19,91239,67016927312,3465,1494,3332,5302,30623,998110,686
Half-moon3        690693
  Bay Totals246,579339,17810,686167,722137,96061,04735,68139,72817,3522,163,9303,219,863

Transhipments.—Transhipments of cargo during 1949 totalled 227,501 tons, of which 164, 313 tons were transhipped at Wellington. This is considerably less than in the previous year, when total transhipments amounted to 264,056 tons, Wellington's contribution to that total being 186,452 tons. The total manifest tonnage in 1949 was 8,636,370, as compared with 8,622,254 tons in 1948.

Transhipments fall into the following four classes:—

  • Coastal to Coastal.—Cargo which has been loaded in a vessel at one New Zealand port and is transhipped to another vessel for discharge at another New Zealand port.

  • Coastal to Overseas.—Cargo which has been loaded in a vessel at a New Zealand port and is transhipped to another vessel for discharge at a port outside New Zealand.

  • Overseas to Coastal.—Cargo which has come from overseas and is transhipped to another vessel for discharge at a New Zealand port.

  • Overseas to Overseas.—Cargo which has come from overseas and is transhipped to another vessel for discharge outside New Zealand.

The first class represents purely coastal trade, but each of the others may he added to the appropriate figures of overseas trade shown previously to ascertain the total tonnage of goods arriving from or departing overseas. Thus the total inward tonnage from overseas in 1949 was 3,372,452, and the total outward tonnage going overseas 1,213,490. Comparative figures for 1948 were 3,092,115 and 1,263,539 tons respectively.

The following table shows for 1948 and 1949 the transhipment trade of each port affected.

Port.Coastal to Coastal.Coastal to Overseas.Overseas to Coastal.Overseas to Overseas.Totals.
1948.1949.1948.1949.1948.1949.1948.1949.1948.1949.
 Tons.Tons.Tons.Tons.Tons.Tons.Tons.Tons.Tons.Tons.
Whangarei     800   800
Auckland2,8532,8907,6867,17328,08921,6664,4093,76143,03735,490
Onehunga1140 70    11110
Raglan 16      .16
Tokomaru Bay6,2945,082 3    6,2945,085
Gisborne77      77
Napier1104512,48812,8433,2071,237  15,80514,125
Wellington8,5037,85486,16781,33390, 63675,1181,1468186,452164,313
Nelson2,9532,612  134   3,0872,612
Motueka 46       46
Lyttelton844989154261253  3,1061,296
Dunedin817609 506,1832,9421,257 8,2573,601
    Totals22,39220,190106,342101,526128,510102,0166,8123,769264,056227,501

The next table shows the various items of merchandise, &c., which comprised the transhipment trade in 1948 and 1949

Item.Coastal to Coastal.Coastal to Overseas.Overseas to Coastal.Overseas to Overseas.Totals.
1948.1949.1948.1949.1948.1949.1948.1949.1948.1949.
 Tons.Tons.Tons.Tons.Tons.Tons.Tons.Tons.Tons.Tons.
Beans and peas38583,4863,648100144  3,6243,850
Hatter  3,5662,882    3,5662,882
Cheese1419,21427,574    19,21527,578
Coal6,5135,4508231,8852   7,3387,335
Flour599560   258148130747948
Fruit, preserved113124 23,1342,9491123,2483,087
Fruit, fresh145524,69514,2922,1943,045  27,03417,342
Hides, skins, and pelts1872052,2532,252  19272,4592,484
Manures, artificial1,0101482 2,8324,393  3,8444,541
Meat, frozen (beef, mutton, and lamb)4,5443,8679,2028,320    13,74612,187
Motor-spirits, kerosene, and other fuel oils1  727,77218,654  27,77318,661
Seeds143116773600273311944750
Sugar232232     3232235
Tallow1733853,1002,537    3,2732,922
Timber641601,7201,6087,2398,643201309,04310,541
Wines, spirits, and beer22011126 8087961171381,1711,045
Wool1,55871433,15732,2355110 26634,76633,225
All other goods6,8518,0514,3253,68484,35163,0916,5063,062102,03377,888
    Totals22,39220,190106,342101,526128,510102,0166,8123,769264,056227,501

Value of Imports.—New Zealand has twenty ports of entry for Customs purposes—nine in the North Island and ten in the South Island, plus the port of Waitangi in Chatham Islands.

The following table gives the total value of imports of merchandise for the several ports of entry during the four years 1939 and 1946–48. Kaipara and Waitangi had no overseas imports during this period.

Port.19381946.*1947.*1948*

*Provisional.

 ££££
Auckland16,508,01727,448,52549,933,28447,281,297
Tauranga3,5954,5482,0214,539
Gisborne127,38062,649135,694131,467
Napier530,086416,899857,181862,661
New Plymouth632,677852,8121,277,6861,213,665
Patea9,49911,69019,18422,430
Wanganui303,059207,670394,584453,802
Wellington19,753,15528,821,15749,602,35847,940,102
Wairau (including Picton)38,74018,13133,72040,947
Nelson137,447146,463268,604280,471
Westport35,99414,49515,66130,298
Greymouth161,75444,79982,420125,128
Hokitika3,8851,4333,0342,758
Lyttelton6,382,8147,728,08315,403,23017,381,947
Timaru377,350204,751476,057260,845
Oamaru51,35632,46456,41468,181
Dunedin3,578,7795,011,9619,057,42410,720,897
Invercargill751,596605,5841,106,2851,379,257
    Totals49,387,18371,634,114128,724,841128,200,692

During each of the last three years three-quarters of the total imports came in by way of Wellington and Auckland, a proportion not greatly in excess of that for 1939. For some years prior to the war the value of imports received at Wellington exceeded the Auckland figure by a considerable margin, but during the last three years there has been little difference between the two ports in this respect. On the basis of import values, the next most important ports are Lyttelton, Dunedin, Invercargill, New Plymouth, and Napier.

Value of Exports.—From 1914 to 1921 the Customs Department allocated exports, as far as possible, to the appropriate district of production, whether exported through the port for such district or not, and no complementary figures are available to show the export trade from each individual port for this period.

The system, however, did not prove satisfactory in practice, and the method of recording exports according to the port at which the goods are placed on board the vessel by which they leave New Zealand was reverted to from the 1st January, 1922.

The following table shows for the years 1939 and 1946–49 the value of total exports according to the port at which they were actually placed on hoard the overseas vessels.

While, in the case of imports, goods received through parcels-post are allocated according to ports of entry, similar treatment is not possible in the case of exports. The total of goods exported by parcel-post is accordingly shown under the heading “parcels-post.”

Port.1939.1946.*1947.*1948.*1949.*

*Provisional.

 £££££
Auckland20,631,83634,088,57942,129,05551,624,66352,605,919
Tauranga   23,710163,229
Tokomaru Bay123,292    
Gisborne847,809 106 125
Napier3,419,6738,392,93312,685,90214,710,82914,768,435
New Plymouth3,906,2514,957,9988,059,8358,089,9348,623,344
Patea   35 
Wanganui1,213,600 11414162
Wellington13,148,44423,532,86831,269,49032,421,36930,536,273
Wairau (including Picton)254,858125,88010 32,237
Nelson159,58550,6371,275 785
Westport36,280   7,780
Greymouth758,888555,793374,637287,16452,303
Hokitika6,887175,180228,58227,332 
Lyttelton4,749,63711,829,53112,916,40615,320,01413,559,182
Timaru1,814,0383,296,6534,429,9555,405,2495,768,481
Oamaru352,7711531,57343 
Dunedin3,027,9977,054,1908,236,7578,947,4608,974,634
Invercargill3,539,8806,957,9878,751,07910,252,79711,997,110
Parcels-post57,590288,783339,488712,249276,370
    Totals58,049,316101,307,165129,406,264147,822,862147,366,369

Auckland occupies a commanding position in the export trade of New Zealand, no less than 35.7 per cent. of the value of all exports in 1949 going through that port. Wellington occupied second place with 20.7 per cent., followed by Napier with 10.0 per cent., Lyttelton, 9.2 per cent., Invercargill, 8.1 per cent., Dunedin, 6.1 per cent., and New Plymouth, 5.9 per cent. The concentration of the export trade in the ports of Auckland and Wellington is less marked than with the import trade, the proportion for these two ports in 1948 being 56.9 per cent. for exports and 74.4 per cent. for imports.

NEW ZEALAND SHIPPING REGISTER.—The number and tonnage of vessels on the New Zealand register at 31st December, 1949, were as follows:—

Port of Registry.Sailing-vessels.Steam-vessels.Motor-vessels.
Vessels.Gross Tonnage.Net Tonnage.Vessels.Gross Tonnage.Net Tonnage.Vessels.Gross Tonnage.Net Tonnage.
Auckland331,9891,599389,0454,22322818,3098,712
Napier   321412782,7731,380
Wellington83752984693,42146,9724243,77623,798
Nelson   65,3212,277102,5341,118
Lyttelton31,7021,62862,9321,077152,5311,249
Timaru   19424881113
Dunedin   1010,6785,688117,9644,439
Invercargill   31,0584301028898
Totals444,0663,525113123,61161,28232578,18640,797

Auckland is the port of registry of the majority of the vessels forming New Zealand's “mosquito” fleet, the average net tonnage of the 299 vessels on the Auckland register being only 49 tons. At Wellington and Dunedin a number of the vessels of the Union Steam Ship Company of New Zealand are registered, while several are also registered in the United Kingdom and Australia. The figures for vessels registered in New Zealand as at the end of each of the last eleven years are as follows:—

Year.Sailing-vessels.Steam- and Motor-vessels.Totals.
Vessels.Gross Tonnage.Net Tonnage.Vessels.Gross Tonnage.Net Tonnage.Vessels.Gross Tonnage.Net Tonnage.
1939484,9074,288456187,37996,831504192,286101,119
1940474,1343,592449185,77695,197496189,91098,789
1941454,0873,553439179,98792,252484184,07495,805
1942454,0873,553429175,34389,623474179,43093,176
1943454,0873,553410159,62580,606455163,71284,159
1944454,0873,553407159,51780,552452163,60484,105
1945454,0873,553406159,20380,6451163,29083,929
1946444,0753,541419161,68681,728463165,76085,269
1947454,0913,547433181,28991,542478185,38095,089
1948434,0493,515430190,38896, 655473194,437100,170
1949444,0663,525438201,797102, 079482205,863105,604

In the next table vessels registered in New Zealand at the end of 1949 have been classified according to whether employed in the coastal or the foreign trade. The totals given therein do not agree with those shown above, as vessels employed exclusively within “restricted limits” have not been included.

Size of Vessel.Employed In the Coastal Trade only.Employed partly In the Coastal and partly in the Foreign Trade.Employed In the Foreign Trade only.
Number of Vessels.Net Tonnage.Number or Vessels.Net Tonnage.Number of Vessels.Net Tonnage.
Under 50 tons36684    
50 and under 100 tons261,8541682168
100 and under 200 tons263,475  2292
200 and under 300 tons51,3532321  
300 and under 400 tons93,1172751  
400 and under 600 tons41,929  1586
600 and under 800 tons85,816  1497
800 and under 1,000 tons1932  1944
1,000 and under 1,200 tons11,00022,31911,100
1,200 and under 1,500 tons79,18034,13722,567
1,500 and under 2,000 tons35,24423,790611,299
2,000 tons and over12,539  722,772
    Totals12737,1231211,3862441,225

The number of vessels coming within the above category was 163, of an aggregate net tonnage of 89,734, as compared with 186 vessels and 83,832 tons in 1939. The decrease in the number of vessels is confined to those engaged in the coastal trade only, 127 in 1949, as against 155 in 1939, but the employment of a larger type of vessel in this trade is reflected in the aggregate net tonnage, 37,123, as compared with 32,091. Vessels employed partly in the coastal trade and partly in the foreign trade showed an increase of 3 in number and 3,350 in aggregate net tonnage, while the number of vessels employed in foreign trade is an increase of 2 on the 1939 figure, but there was a decrease of 2,480 in the net tonnage.

MARINE OFFICERS' CERTIFICATES.—The examinations for masters, mates, engineers, &c., of vessels are controlled by the Marine Department, and the regulations relating to these examinations are based upon those of the Imperial Board of Trade, with such modifications as are necessitated by local conditions; but the British Board of Trade recognizes only the following New Zealand certificates as of Imperial validity: Master, extra; master, first mate, and second mate; first- and second-class steam engineers; and first- and second-class motor engineers. It is a condition of such recognition that candidates must possess service qualifications and pass examinations similar and not inferior to those prescribed by the British Board of Trade.

New regulations for the examination of marine engineers were issued by the Board of Trade in the year 1938, and corresponding regulations were made in this country and came into force on the 1st October, 1939. These regulations provide for the issue of combined steam and motor engineers' certificates (Imperial validity). Provision is also made whereby candidates for first- and second-class examinations (Imperial validity) may take the examinations in two parts. Amendments to the rules for the examination of masters and mates were brought into force on 11th October, 1940.

During the year ended 31st March. 1950, 130 examinations for certificates as masters and mates were held, compared with 162 in the previous year. A review of the results of these examinations is as follows, with figures for the 1948–49 year shown in parentheses. Of the 91 (77) who passed. 47 (40) obtained certificates as masters and mates of foreign-going ships. 21 (25) as masters and mates of home-trade ships. 7 (9) us masters of river steamers, 4 (2) for compass deviation, 1 (0) for fore and aft endorsement, 11 (0) as master of an oil engine vessel under 6 tons register, and 1 in 1948–49 for square-rigged endorsement. In addition, 19 (27) secured a partial pass in the examination for foreign-going masters and mates, and 8 (20) for home-trade masters and mates.

For the examinations of marine engineers during 1949–50 and 1948–49 (figures for the latter shown in parentheses), 165 (171) candidates presented themselves for certificates of imperial validity, of whom 48 (36) secured a full pass and 50 (76) a partial pass. There were 211 (288) examinations for certificates of New Zealand validity only, and 159 (225) certificates were issued. These included 74 (93) third-class steam. 2 (6) river steam. 26 (28) first and second coastal motor, and 57 (98) river oil certificates.

SURVEY OF SHIPS.—Survey certificates were issued in 1949–50 and 1948–49 (figures for the latter in parentheses) for 3 (5) steam and 7 (3) motor foreign-going ships, 28 (33) steam and SO (87) motor home-trade ships, and 30 (39) steam and 311 (293) motor restricted-limits ships and launches. Equipment certificates were issued for 19 (23) foreign-going, 18 (23) home-trade, and 1 (1) restricted-limits ships, all of which carry certificates of class issued by classification societies. Surveys were also made in 262 (303) cases for seaworthiness, efficiency of equipment, tonnage, radio-telegraphy, &c., under section 226 of the Shipping and Seamen Act, 1908.

LIGHTHOUSES.—Along the New Zealand coast there are fifty-five coastal lights of various types. In twenty-eight cases the lights are watched or attended lights and tie-apparatus is classed as of the dioptric order—i.e., a central lamp sending its ray through a combination of surrounding lenses—while the remaining twenty-seven coastal lights, exclusive of harbour entrance lights, are automatic lights. The buildings housing the lights are of varying kinds, as necessitated by their respective situations.

Fog-signals of the diaphone type are established on Tiri Tiri Island, at Pencarrow Head, Godley Head, and Taiaroa Head; while radio beacons have been established at Cape Reinga, Tiri Tiri Island, Portland Island, Cuvier Island, Mokohinau, Baring Head, Stephen's Island, Cape Campbell, and Puysegur Point.

The most powerful light is that of Stephen's Island, which, placed some 600 ft. above high water, is visible at a distance of 32 nautical miles. Next in order come Cape Reinga (altitude 542 ft.), visibility, 31 miles; Cape Brett (altitude 490 ft.) and East Cape (505 ft.), both visible at 30 miles; Cuvier Island (altitude 390 ft.) and Mokohinau (altitude 400 ft.), both of which have a visibility of 26 miles; Godley Head (altitude 317 ft.) and Portland Island (altitude 300 ft.), both visible at 24 miles. Nine other lights have a range of 20 miles or over, being Centre Island, Baring Head, Kaipara (North Head), and Akaroa, all 23 miles; Cape Palliser, Brothers, and Nugget Point, all 22 miles; Tiri Tiri Matangi, and Cape Saunders, 20 miles each. The remaining 11 watched lights have visibilities as follows, the distance being recorded in miles: Moeraki and Castlepoint, 19 each; Manukau (South Head), Cape Campbell, Dog Island, and Puysegur Point, all 18 miles; Kahurangi and Cape Egmont, Hi miles each: Farewell Spit, 15 miles; Waipapa, 14 miles; and French Pass, 8 miles.

All manually-attended coastal lighthouses are equipped with signalling flags and lamps, the keepers being competent to transmit or receive messages. In addition, there are nine of the principal lighthouses equipped with radio-telephone systems of communication. Coastal lights—i.e., those outside the bounds of the various harbour authorities—are maintained by the Marine Department.

The expenditure on all lighthouses under the control of the Marino Department during the year 1949–50 was as follows: Salaries and wages, £31,211: stores and general maintenance, £55,168; radio-beacons, improvements, &c., £17,051; working-expenses of tender, £10,682: administration expenses, £7,031; depreciation, £24,635; total, £145,778. Light dues for 1949–50 totalled £96,166, 166, an increase of £16,239 on the previous year.

WRECKS.—In the case of any wreck or shipping casualty in New Zealand waters a Collector of Customs, Superintendent of Mercantile Marine, or other person empowered by the Minister of Marine, institutes an inquiry into the cause and circumstances of such casualty. If necessary, a formal investigation is held by a Magistrate, who has power to cancel or suspend the certificate of any officer from whose wrongful act or default damage has resulted.

Should any wreck occur on the coast, the Receiver of Wrecks for that district, usually an officer of the Customs, has the necessary authority to be used in the preservation of life and property.

The numbers of shipping casualties reported to the Marine Department during the years ended 31st March 1949 and 1950, were 43 and 40 respectively, of which 35 in the earlier and 31 in the later year occurred on or near the coasts of New Zealand. There was no total loss in 1948–49 and 1 in 1949–50, and no lives were lost during either year. A summary of the casualties is given for the two years.

Class of Casualty.1948–49.1949–50.
No.Tonnage.No.Tonnage.
Strandings—    
Total loss    
Damaged93,45874,995
Undamaged82,91655,156
Collisions—    
Total loss917,0411520,776
Damaged917,0411520,776
Undamaged1139223
Fires—    
Total loss  16
Damaged35,99019,441
Undamaged  16,243
Miscellaneous1318,84087,048
Total casualties4348,3844053,688

Chapter 11. SECTION 11—RAILWAYS

Table of Contents

RAILWAY history in New Zealand dates from the year 1860. In that year a contract was let for the construction of a line from Christchurch to Lyttelton, and the first portion of this line was opened on the 1st December, 1863. A line from Invercargill to Bluff Harbour was opened on the 5th February, 1867. The Provincial Council of Auckland in 1863 began the construction of a line from Auckland to Drury.

Although practically the whole of the railways are now State-owned, some were built by private enterprise. Of these the more important were constructed by the Midland and the Wellington-Manawatu Railway Companies.

In the year 1876 the railways of New Zealand passed from the control of the Provincial Governments to the Public Works Department. A few years later the opened lines were handed over to the Working Railways Department, and in 1889 a Board of three Railways Commissioners was appointed. This form of management, however, lasted for only five years, at the end of which period a General Manager, responsible to the Minister of Railways, took over the administration, and this system continued for nearly thirty years. In 1925 the system of railway management was reorganized under the control of a Railways Board of three members, but in 1928 the system of control by a General Manager was again reverted to. Three years later legislation was passed constituting the Government Railways Board of five members. This form of management was in operation from 1st June, 1931, to 31st March, 1936, after which date the system of control by a General Manager, responsible to the Minister of Railways, was again introduced.

The Christchurch-Lyttelton section of railway, including the Lyttelton Tunnel, was electrified in 1928–29; the Otira - Arthur Pass section, including the Otira Tunnel, in 1923; the Wellington-Johnsonville section in 1938; and the Wellington-Paekakariki section in 1940.

MILEAGE OF STATE RAILWAYS.—At the 31st March, 1950, there were 3,526 miles of State railways open for traffic, divided into three distinct sections, as follows:—

Section.Length (Miles).
North Island main line and branches1,683
South Island main line and branches1,783
Nelson66
Total, South Island1,843

Government railways are constructed by the Ministry of Works, and are transferred to the Railways Department when completed.

The gauge is 3 ft. 6 in., and a steel rail 85 lb. weight per lineal yard has in recent years been adopted as the standard for the main line permanent-way. Two hundred and thirty-three miles of this weight have been laid. The previous standard was a 70 lb. rail, and this weight is in use on 1,877 miles of line. In both these instances the mileage given includes miles of double track. The ultimate objective is 85 lb. track for all important main lines and 70 lb. for main lines of lesser importance and the chief branches. Sleepers, which are laid down to the number of 2,500 to the mile, are principally of Australian hardwood and New Zealand silver-pine or totara.

The completion of the South Island Main Trunk Railway linked the Picton section to the main-line system on 15th December, 1945. As part of the deviation and duplication of the line between Wellington and Upper Hutt (20 miles), an extension from Waterloo to Naenae was opened for traffic on 7th January, 1946, and to Taita on 14th April, 1947, this portion of the deviation serving the extensive new State housing development in this area. Materials for the electrification of this line are on order, as well as multiple unit passenger-coaches. On 7th December, 1947, the Turakina—Okoia deviation was brought into use, saving 4 miles 10 chains on the journey between Morton and Wanganui and, by the elimination of a tortuous hill section, permitting the haulage of greater loads by the same locomotives.

COST OF CONSTRUCTION.—The capital cost of State railways as at the end of each of the last five financial years is given below.

31st March, 1946.31st March, 1947.31st March, 1948.Slat March, 1949.31st March, 1950.

*Equal to £22,015 per mile of open line.

Open for traffic—     
 £££££
  Railway71,514,38072,099,79073,838,31775,364,18277,624,303*
  Lake Wakatipu steamer service20,39620,39620,39620,39021,878
  Subsidiary services2,922,0593,224,1613,220,4223,401,8463,895,686
  General9,8969,8969,8969,8969,896
    Totals74,466,73175,354,24377,089,03178,796,32081,551,763
Lines under construction1,546,0661,587,6551,569,8971,371,9191,738,722
    Grand totals76,012,79776,941,89878,658,92880,168,23983,290,485

So varied are the geographical features of New Zealand that a great disparity exists in the cost of constructing the individual sections of lines. The numerous mountain-chains and the innumerable rivers make railway-construction in general both difficult and expensive. The Otira Tunnel is 5 miles 26 chains long, and the proposed Rimutaka Tunnel is to be 5 miles 36 chains. The length of the longest bridge, over the Rakaia River, is 5,720 ft., and the largest viaduct, the Mohaka, is 887 ft. long and 318 ft. above water-level.

ROLLING-STOCK.—Information as to the rolling-stock in use on the State railways as at 31st March, 1950, is given in the following table.

*In addition, there are 5 battery electric shunting locomotives in use in workshops, 38 diesel and petrol shunting tractors in use at stations, and 3 Hunslett locomotives used mainly by the Way and Works branch.

Locomotives— 
Tender462
Tank165
Electric21
Diesel shunting4
    Total*652
Passenger-vehicles— 
Sleepers15
Combination day-sleepers3
First-class136
Second-class1,268
Composite50
Rail cars21
Electric multiple units53
Postal8
Ambulance7
    Total1,561
Wagons— 
Horse-boxes252
Cattle903
Sheep3,317
Frozen and chilled meat1,197
Cool-storage1,111
Covered goods891
High-side19,810
High-side bogie356
Low-side1,613
Flat-top bogie897
Brake-vans475
Other3,979
    Total34,801

Since 1901 most of the rolling-stock required has been built in the Department's own workshops, including carriages, diesel-mechanical rail cars, wagons, and locomotives, both steam and electric. Special types have been imported from England, notably multiple unit coaches, nine rail cars operating in the South Island, and the prototypes of electric locomotives. On order are the multiple units for the Hutt Valley electrified lines, and diesel-mechanical twin-car sets for general use throughout the railway system to provide fast daily passenger train services where traffic warrants. Certain of these twin-car sets are being manufactured with a centre rail brake in order that they may be used on the Wellington-Wairarapa services via the Rimutaka Incline.

During the war years the resources of the workshops were directed towards munitions and urgent repairs of rolling-stock; consequently, wagon-construction programmes fell far behind schedule, and little headway has since been made owing to staff and material shortages. To alleviate an acute wagon deficiency, orders for 3,000 four-wheeled LA wagons were placed in the United Kingdom; deliveries commenced in 1947 and were completed early in 1949. The New Zealand Railway workshops carried out the final assembly of these wagons. Further increases in traffic and the continuing shortage of staff in the workshops have made it imperative to import additional wagons; 1,075 wagons of various types are on order overseas, and tenders have been called for a further 3,805.

The heaviest types of locomotive used in New Zealand were designed and constructed in Railway workshops, the K class weighing 135 tons in working trim, the KA 142 tons and the KB (with booster) 143 tons. The eighteenth locomotive of a programme of 35 class JA (109 tons), was completed at Hillside in July, 1950. This type is similar to the J, 40 of which were imported from England in 1939 in anticipation of heavy Centennial Exhibition traffic.

The following steam engines of recent construction deal with the bulk of the traffic.

Class.Type.Traffic.Weight.Tractive Force.
   Tons.lb.
AB4–6–2 superheated; simple, with tenderMixed8520,000
G4–6–2 superheated; simple, with tenderMixed9825,800
J and JA4–8–2 superheated; simple, with tenderMixed10924,920
K4–8–4 superheated; simple, with tenderMixed13530,815
KA4–8–4 superheated: simple, with tenderMixed14230,815
KB4–8–4 superheated; simple, with tender (fitted with booster)Mixed14336,815
WAB4–6–4 superheated; simple tank engineMixed7122,250
C2–6–2 superheated: simple, with tenderShunting6615,300

Standard carriages are 56 ft. in length, fitted with chair seats to accommodate thirty-one to fifty-six passengers, steam-heated, and lighted by electricity. Some 760 carriages were equipped with electric light at 31st March, 1950.

REVENUE AND EXPENDITURE.—The total revenue from and expenditure on the railways (including subsidiary services) during each of the years 1939–40 to 1949–50 were as follows:—

Year ended 31st March,Gross Revenue.Expenditure.Net Revenue.Net Revenue per £100 of Capital Cost.

* The losses were recovered in full as a subsidy from vote, “Economic Stabilization.”

  £££s.d.
194010,199,0709,010,0391,189,0311193
194111,160,2189,465,5741,694,64421210
194211,938,33810,056,0341,882,3042180
194314,128,99311,302,4132,826,580461
194415,325,30612,757,3362,567,9703143
194514,459,75013,260,2771,199,4731139
194615,444,84714,384,8441,060,003194
194715,680,05715,944,270−264,213*   
194817,070,87217,710,897−640,025*   
194918,597,72819,700,594−1,102,866*   
195019,541,18420,596,740−1,055,556*   

Interest on capital liability amounted to £2,768,152 in 1949–50, compared with £2,710,318 in 1948–49. In each year the working loss was made good by the stabilization subsidy, so the interest debits represented the final deficit. A sum of £1,697,465 was set aside in 1950 for depreciation and track-renewals, while expenditure from these funds amounted to £818,902. The amounts standing to the credit of the Depreciation and Renewals Accounts at 31st March, 1950, were £3,682,620 and £616,300 respectively.

The revenue and expenditure for the last five years, distinguishing between railway operation and other items, are given in the following table.

Year Ended 31st March,Gross Revenue.Expenditure.Net Revenue.
Railway Operation.Subsidiary Services, &c.Railway Operation.Subsidiary Services, &c.Railway Operation.Subsidiary Services, &c.

* Net loss.

 ££££££
194613,104,5872,340,26012,549,7241,835,120554,863505,140
194712,823,7842,856,27313,644,7792,299,491−820,995*556,782
194813,964,2803,106,59215,090,0912,620,806−1,125,811*485,786
194915,338,8823,258,84616,788,2562,912,338−1,449,374*346,508
195016,062,0663,479,11817,360,9133,235,827−1,298,847*243,291

The various subsidiary services now conducted by the Railways Department, with the revenue and expenditure of each during the last two years, are shown below. Full working-costs, including interest, are charged against these services, and the interest so charged is taken into miscellaneous receipts as revenue.

Service.Revenue.Expenditure.
1948–49.1949–50.1948–49.1949–50.
 ££££
Lake Wakatipu steamers13,63014,79818,59320,038
Refreshment service335,240367,917355,535386,083
Bookstall service247,308247,707242,917244,171
Advertising service59,67362,94545,76247,073
Departmental dwellings172,084181,260319,349380,454
Leases of bookstalls, &c.56,70064,49647,26754,463
Road services—Passengers and goods1,910,2512,033,8911,882,9152,103,545
Miscellaneous receipts463,960506,104  
    Totals3,258,8463,479,1182,912,3383,235,827

Revenue.—In the following table the railway operating revenue during 1949–50 and each of the preceding ten years is classified according to the class of traffic, &c., from which it was derived.

Year ended 31st March,Passenger-fares.Parcels, Luggage, and Mails.Goods and Live-stock.Labour, Demurrage, &c.Totals.
 £££££
19402,119,335330,0246,109,293202,9858,761,637
19412,345,718317,8196,818,603212,0509,694,190
19422,658,778325,8977,174,060225,14510,383,880
19433,710,509397,1428,044,563262,86612,415,080
19444,275,482435,9288,479,387274,18213,464,979
19453,504,453411,0218,261,087271,74612,448,307
19463,912,509426,6198,515,673249,78613,104,587
19473,253,748440,7318,903,762225,54312,823,784
19482,687,767553,36610,486,744236,40313,964,280
19492,759,478560,59311,747,129271,68215,338,882
19502,847,925480,86912,434,487298,78516,062,066

Revenue from the carriage of goods and live-stock increased steadily up to 1929–30, but from then until 1932–33 successive declines were recorded, due mainly to the economic depression and to motor competition. Commencing in the following year, however, revenue from this source recorded an unbroken series of increases up to 1943–44. A slight reduction occurred in 1944–45, due to a falling off in military freights, but since then the upward trend has continued, and the figures for 1949–50 set a new record in both revenue and tonnage. Goods revenue for 1949–50 was £687,358, or 5.9 per cent. in excess of the previous year and £7,530,163, or 153.5 per cent. more than that for 1929–30.

During the period 1926–33 there was a rapid falling off in the amount of revenue from passenger traffic owing mainly in the earlier years to intensive motor competition and later to the depression. This period was followed by a definite upward trend due to the improvement in economic conditions. After the outbreak of war, passenger traffic increased more sharply, the peak being reached in 1943–44, when passenger revenue was more than double that of 1939–40. The large increase during the war years was due to the movements of members of the Armed Forces and to the curtailment of road services and the partial immobilization of private motor-cars, the result of restrictions placed on the use of motor-spirits and rubber tires. Following the cessation of hostilities passenger revenue receded considerably, being £1,427,557 (33.4 per cent.) less in 1949–50 than in the peak year of 1943–44, owing to the large decline in Armed Forces traffic and to intensified road and air competition. The Department has also been hampered in its activities by a shortage of trained operating staff, in consequence of which it has not yet been possible to restore the passenger-train service to its pre-war frequency.

Compared with the last pre-war year (1938–39), the revenue from passenger fares in 1949–50 showed an increase of 59.5 per cent. and the revenue from goods and livestock an increase of 118.3 per cent.

As from 14th September, 1947, passenger fares (excluding suburban) were raised by 15 per cent., and goods and parcels rates by 20 per cent. Further increases in freights ranging from 12½ per cent. to 33⅓ per cent. took place as from 15th May, 1950, whilst suburban season tickets were increased by 15 per cent. from the same date. These increases have been rendered necessary by the continued upward trend of expenditure.

The revenue from passenger-fares during the year 1949–50 represented an expenditure on railway travel of £1 10s. 1d. per head of mean population, including Maoris. The total railway operating revenue was equal to £8 9s. 10d. per head.

Expenditure.—The total railway expenditure in 1949–50 represented 105.40 per cent. of the gross earnings, and the operating-expenses 108.09 per cent. of operating revenue. It is of interest to trace the movement over a series of years, as in the following statement. The figures show the percentage of operating expenditure to operating revenue.

Year ended 31st March,Per Cent.
193091.62
193194.47
193291.56
193390.54
193486.65
193586.98
193688.46
193791.81
193896.05
193995.73
194090.66
194186.72
194285.73
194380.71
194484.41
194593.96
194695.77
1947106.40
1948108.06
1949109.44
1950108.09

The operating expenditure under various heads is now given for 1949–50 and for each of the previous ten years.

Year ended 31st March,Maintenance of Ways and Works.Maintenance of Signals.Maintenance of Rolling-stock.Locomotive Transportation.Traffic Transportation.Head Office and General Charges.*Totals.

* Including superannuation subsidy.

 £££££££
19401,468,268197,9491,896,3661,891,2622,250,905238,3707,943,120
19411,544,202213,6232,043,9762,043,9962,322,492238,5018,406,790
19421,615,382238,1692,211,4762,113,9182,479,852243,7958,902,592
19431,829,311271,4992,380,2602,430,3472,862,653245,58910,019,659
19442,146,448326,1902,868,0062,555,9563,207,782261,53511,365,917
19452,250,736332,0152,839,5912,473,5813,460,705340,26711,696,895
19462,524,485375,4993,055,3032,627,8683,618,584347,98512,549,724
19472,466,020376,4583,241,1392,996,0164,138,817426,32913,644,779
19482,528,407426,8413,298,7003,786,7564,550,376499,01115,090,091
19492,904,028482,4923,885,4934,032,8644,956,482526,89716,788,256
19502,966,062540,0743,889,1524,064,9015,355,345545,37917,360,913

The increase in expenditure in recent years has been due chiefly to an increased wages bill, mainly the result of higher rates of pay and improved conditions of employment, to the high cost of locomotive fuels, and to a general rise in the price of stores. In an endeavour to overcome an unsatisfactory coal position, the Department has been obliged to import coal from overseas and, in addition, has converted some seventy-three locomotives to burn oil-fuel.

PASSENGERS AND GOODS.—In addition to the traffic figures shown in the following table for 1949–50, 25,696,036 passengers were carried by the Railways Department's road services, as compared with 23,532,473 in 1948–49 and 21,537,007 in 1947–48. Passenger train-miles run during 1949–50 totalled 5,093,859, and the passenger revenue received represents 134.18d. per passenger train-mile and £808 per mile of line operated.

Year ended 31st March,Length open (Miles).Train-mileage (Revenue).Passengers.Season Tickets Issued.Goods and Live-stock.*
Including Season-ticket Holders.Excluding Season-ticket Holders.

* Live-stock converted to equivalent tonnage.

      Tons.
19403,39013,366,79824,454,0148,283,067972,7697,673,950
19413,39013,559,64626,276,9239,440,0871,055,7428,426,182
19423,39013,978,96128,610,94511,105,6271,167,1158,473,765
19433,46015,139,88236,133,26817,171,2141,377,8258,887,089
19443,50415,328,98738,611,26718,317,3231,518,0459,026,626
19453,50412,802,53632,994,52913,629,5231,394,8178,954,239
19463,52813,454,50832,417,67513,553,0831,369,5729,210,466
19473,52813,169,23328,869,13510,222,3251,358,4539,329,333
19483,52613,712,10325,887,1898,111,4171,347,6719,524,043
19493,52613,895,48826,167,8457,708,0491,387,9619,666,130
19503,52614,420,85225,895,2537,881,2551,402,7899,948,261

The number of ordinary passenger journeys in 1949–50 increased by 2.25 per cent. and the tonnage of goods hauled by 2.92 per cent. compared with the previous year.

Live-stock carried in 1949–50 was equivalent to a tonnage of 711,142 and included 780,202 cattle, 771,389 calves, 9,681,653 sheep, and 504,762 pigs. Comparative figures for 1948–49 were 724,840 tons, 774,942 cattle, 734,876 calves, 10,166,077 sheep and 462,565 pigs.

Detailed figures showing the number of rail passengers carried during the last five years are given in the following table.

1945–46.1946–47.1947–48.1948–49.1949–50.
Ordinary5,860,4705,045,2284,625,4654,317,6124,353,272
Suburban2,803,5642,348,1812,226,1552,196,1352,177,278
Other reduced fares4,889,0492,828,9161,259,7971,194,3021,350,705
    Totals13,553,08310,222,3258,111,4177,708,0497,881,255
Season tickets issued—     
  Suburban weekly twelve-trip403,559429,249427,358473,225477,366
  Workers' weekly77,75381,93670,02071,67164,494
  Weekly twelve-trip67,97262,18551,80240,73240,957
  Bearer twelve-trip62,02958,10965,73262,86855,790
  Bearer six-trip678,996650,227662,552667,562696,857
  School22,98422,17118,31620,16117,827
  Tourist4967454532
  Travellers' annual244214147121113
  Other55,98654,29551,69951,57649,353
    Totals1,369,5721,358,4531,347,6711,387,9611,402,789

The following table gives interesting information as to the constitution of the goods traffic for the year 1949–50. The figures are exclusive of steamer traffic on Lake Wakatipu.

Commodity.Tonnage.Revenue.
Tons Carried.Percentage of Total.Tons, One Mile (000 omitted).Average Haul.Total Gross.*Per Ton-Mile.

* Inclusive of Refunds.

 No.Per Cent.No.Miles.£d.
Grain300,7403.0219,88766224,5832.71
Meals110,3911.117,6586991,9622.88
Fruit and vegetables78,1080.7915,498198156,4202.42
Root crops and fodder155,1771.5619,070123169,8162.14
Flax, green and pressed4,6350.056201348,7583.39
Seeds40,1350.403,2428148,9023.62
Cattle, calves, horses298,6323.0027,67393424,3753.68
Sheep and pigs412,5104.1539,99097646,1093.88
Meat, fresh21,8500.222,61912056,5815.18
Meat, frozen322,2743.2413,16641420,5067.67
Butter134,1521.3513,556101229,0084.05
Cheese98,7230.995,85259121,2774.97
Wool225,6262.2717,23476379,6395.29
Dairy by-products61,4800.625,84295103,6734.26
Fat, hides, and skins62,0620.625,28685110,7065.03
Fish14,1720.142,79219731,9852.75
Agricultural lime653,7336.5749,05875340,5981.67
Lime, other35,5460.363,3199326,5711.92
Coal, New Zealand hard838,9598.4263,01675505,4711.93
Coal, New Zealand brown1,292,14612.99165,8161281,122,2241.62
Coke14,5110.151,79112319,9882.68
Road-metal92,2470.936,4447061,0052.27
Timber, imported29,0970.292,94310144,7933.65
Timber, New Zealand730,2677.34115,1861581,063,1392.22
Firewood, posts, &c.122,6341.2414,51911896,5011.60
Motor spirits, kerosene330,3963.3229,97591696,9945.58
Cement148,0381.4922,409151251,7652.70
Manure982,8299.8893,86596811,0422.07
Miscellaneous2,337,19123.49252,8121084,222,7934.01
    Totals9,948,261100.001,021,13810312,487,1842.93

The next table shows the tonnage of goods carried, freight train-miles run, and net ton-miles run, together with the respective averages for each of the last eleven years.

Year ended 31st March,Tonnage carried.Freight Train-miles.Tons One-mile (000 omitted)Gross Revenue.
Per Ton.Per Freight Train-mile.Per Ton-mile.
    s.d.£s.d.d.
19407,673,9507,464,466580,777151101642.57
19418,426,1827,710,091659,72416501782.52
19428,473,7657,996,572688,70917301832.54
19438,887,0898,758,310781,37918601892.52
19449,026,6268,873,974832,59419201962.50
19458,954,2398,199,598814,90618101062.48
19469,210,4668,646,417842,54218101012.47
19479,329,3338,516,995883,6641951132.46
19489,524,0439,002,450937,4222241382.73
19499,666,1309,157,049970,7562481602.94
19509,948,2619,326,9931,021,1382511692.93

A classification of goods traffic for the eleven years ended 1949–50 is now given, the figures quoted being in thousands of tons.

Year ended 31st March,Agricultural and Pastoral Produce.Agricultural Lime and Manures.Timber and Firewood.Coal.Motor-spirits and Kerosene.Other.
Agricultural Produce.Dairy-produce.Meat, Fish, and Livestock.Wool.
19405562159301681,4305871,7561951,837
19415962321,0281651,6296642,0341781,900
19425892741,1251881,3776532,0861961,986
19436962881,2142221,1497582,0491802,331
19447572521,1962191,2407572,0842022,320
19457522551,1942051,4027152,0842052,142
19467952501,2552501,4576922,0972212,193
19477332491,2122331,6477012,0622612,231
19487592601,2022221,5347932,0882982,368
19497362771,1572201,5358602,0843052,492
19506892941,1312261,6378822,1313302,628

RAILWAY EMPLOYEES.—The average number of persons employed by the State railways throughout the year ended 31st March, 1950, was 26,780. The staff is divided into two divisions—namely, the salaried or clerical division, and the general or out-of-door division—and is further classed in five branches, as shown in the following table.

Year ended 31st March,Traffic.Maintenance.Locomotive Running.WorkOther Branches.Totals.
19467,8534,3513,3655,7263,03424,329
19478,2184,5743,6226,1733,49026,077
19488,1964,5783,5726,0123,59225,950
19498,3114,7513,5905,9653,70726,324
19508,3474,9343,6445,9283,92726,780

A system of classification, first introduced in 1896, and revised at various times since, applies to railway employees. An Appeal Board is constituted to hear grievances of members dissatisfied with decisions in regard to promotion, loss of status, or breaches of discipline. The Board consists of a Magistrate and two members of the Railways service, one appointed by the Minister of Railways, and the other elected by the members of the Department. The Government Railways Amendment Act, 1944, provided for the establishment of a Tribunal of three members whose principal functions are to prescribe scales of salaries and rates of wages for railway employees; conditions in regard to hours of work, overtime, &c.; and terms and conditions in regard to leave of absence, railway travel concessions, &c. This tribunal, known as the Government Railways Industrial Tribunal, is deemed to be a Commission of Inquiry under the Commissions of Inquiry Act, 1908. The members, who must not be members of the Railways Department or of any of the railway employees' organizations, are appointed for a term of three years.

A superannuation fund in connection with the Railways service was established in 1903, but was merged with other State superannuation funds, as from 1st April, 1948, all moneys standing to the credit of the fund being transferred to the newly created Government Superannuation Fund as from that date. Information concerning this is given in the section dealing with “Social Security, Pensions, Superannuation, &c.” A sick-benefit fund, providing for the payment of weekly allowances for periods up to fifty-two weeks to employees other than salaried staff who are incapacitated by sickness, was instituted in 1929. The fund is subsidized by the Department up to a maximum of £28,000 per annum. The amount claimed in 1949–50 was £10,200. The Sick Benefit Society had a membership of 16,065 at 31st March. 1950.

RAILWAY ACCIDENTS.—The history of the railways in New Zealand has been one of comparative freedom from train accidents of a serious nature. Of two which may be termed disasters, the first occurred near Ongarue in 1923, when seventeen passengers were killed and twenty-six injured as a result of an express train colliding with a fallen boulder on the line; the second was a major derailment of a passenger-train near Hyde on 4th June, 1943, which caused the deaths of twenty-one passengers and more or less serious injuries to forty-six others.

A further serious accident occurred on 25th February, 1948, when the Picton-Christchurch passenger express became derailed two miles south of Seddon Station. A Board of Inquiry set up under the Government Railways Act, 1926, found that the cause of the accident was the overturning of the engine and tender due to entering a curve at a speed far in excess of that authorized. Six passengers were killed and 61 injured, some seriously. The fireman and driver were also injured.

During the year ended 31st March, 1950, 39 persons were killed and 533 were injured in all kinds of accidents arising from train-working and movements of rolling-stock. Comparative figures for the previous year were 29 killed and 481 injured. These figures do not include employees who were killed or injured whilst engaged on other duties—e.g., railway workshops.

Of the 39 persons meeting with fatal accidents in 1950, 7 were passengers and 9 were employees; of the remainder who were neither passengers nor employees, 16 were killed at railway-crossings, 1 in a shunting accident, 2 in accidents on the line, and 4 whilst trespassing. Of those injured, 62 were passengers, 427 were employees (chiefly minor accidents), and 44 were neither passengers nor employees. Of the 44 other persons, 30 were injured in crossing accidents.

PRIVATE RAILWAYS.—There are a number of private railways in New Zealand, chiefly lines of light construction serving colliery and sawmilling areas. On the timber tramways, special rolling-stock is used for log-haulage with various types of locomotive, many of interesting design according to the nature of the work required of them. The longest of the private lines connecting collieries to the State system is the 11 miles 67 chains of railway between Birch field and Wairio, operated by the Ohai Railway Board.

No accurate information is available concerning the mileage of these railways.

Chapter 12. SECTION 12—TRAMWAYS

Table of Contents

SYSTEMS AND OWNERSHIP.—Subject to two exceptions, electric-tramway services in New Zealand have been controlled since their inception by local authorities, the exceptions being—(1) Auckland, where a public company operated from 1902 until 1st July, 1919, when the system was taken over by the Auckland City Council; and (2) Dunedin, where a section of the system was until 1921 operated by a private company. Five of the six electric-tramway systems operating at the present time are controlled by the City Council concerned, the Wanganui system having ceased operations by the end of September, 1950. At Christchurch the Christchurch Tramway Board, and at Auckland the Auckland Transport Board, are the controlling authorities.

The local authorities derive their powers for controlling tramways from the Tramways Act, 1908. There are also special Acts empowering the construction, &c., of tramways in certain places.

System.Year of Inauguration.Length of Track as at 31st March, 1949.Approximate Population in Area served 31st March, 1949.
Thoroughfare.Single Line (including Loops).
  M.ch.M.ch.
Auckland190244608740239,000
New Plymouth191662473023,000
Wanganui19081424166426,000
Wellington19042824869128,000
Christchurch190543575611147,000
Dunedin19031462263179,000
Invercargill191264283827,000

Passenger rolling-stock at 31st March, 1949, comprised 690 cars with a capacity of 29,317 passengers, including 15 trolley-buses with a capacity of 568 passengers, The total route mileage was 158 miles, and track mileage (including loops) 252 miles, In addition to the passenger rolling-stock there were 3 freight oars and 1 water-sprinkler.

REVIEW OF OPERATIONS.—Summarized statistics of tramway operations during the last five years are given in the following table.

Year ended 31st March,Number of Undertakings.Number of Employees paid out of Revenue.Passenger Car-miles run.Passengers carried.Number of Passengers per Car-mile.
194573,06817,726,760219,828,19112.40
194673,19617,663,473215,700,74412.21
194773,37317,515,113202,949,56311.59
194873,31716,714,599186,182,47411.14
194973,44316,151,330182,126,16411.28

Successive annual increases in the numbers of passengers carried were recorded from 1933–34 to 1943–14, but in the last five years progressive decreases have been recorded with a fall of 2 per cent. in 1948–49 as compared with 1947–48. One of the principal factors contributing to the substantial decline in passenger traffic in 1946–47 and in 1947–48 was the increase in private motoring made possible by the casing of motor-spirits rationing, while other considerations were the reduced services in some centres owing to the electric-power position and staff shortages. All of the systems showed decreases in 1948–49—viz., Auckland, 0.3 per cent.; New Plymouth, 0.4 per cent.; Wanganui, 10.2 per cent.; Wellington, 3.2 per cent.; Christchurch, 2.6 per cent. Dunedin, 6.2 per cent.; Invercargill, 6.7 per cent. The increased volume of passenger traffic during the war years was undoubtedly largely due to the restrictions imposed on the use of motor-spirits, though the presence of members of the Armed Forces on leave from nearby military camps would also be a contributing factor in some centres.

A summary of all tramways revenue for the last five years, classified under the main headings, is contained in the following table. Compared with the previous year, cash fares in 1948–49 fell by £23,191 (1.5 per cont.) while concession fares rose by £55,818 (10.4 per cent,).

Year ended 31st March,Passenger.Freight.Other.Total.
Cash.Concession.
 £££££
19451,727,680568,2555,93428,1112,329,980
19461,701,106581,6395,69429,3002,317,739
19471,627,385556,0554,45033,0482,220,938
19481,549,742534,8763,75436,3342,124,706
19491,526,551590,6943,94138,6402,159,826

Figures showing details of the total expenditure during the last five years are given in the next table.

Year ended 31st March,Operating Expenditure.Capital Charges.Other Expenses.Totals.
 £Per Cent.£Per Cent.£Per Cont.£Per Cent.
19451,479,31165.56732,13732.4544,9621.992,256,410100.00
19461,663,52771.31628,16426.9341,0721.762,332,763100.00
19471,658,24674.06551,49324.6329,2261.312,238,965100.00
19481,820,65380.86401,51617.8329,5671.312,251,736100.00
19491,950,14883.86344,65814.8230,5891.322,325,395100.00

Operating expenditure has increased by £511,419, or 35.5 per cent., during the last five years, whereas in the same period traffic revenue decreased by £179,258 (7.8 per cent.).

An analysis of the capital value of tramway undertakings follows.

As at 31st March,Permanent-way.Electric Equipment of Lines.Cars and other Vehicles.Land.Buildings.Miscellaneous and Undefined.Totals.
 £££££££
19451,716,716428,5831,228,252144, 269585,704440,6194,544,143
19461,715,701429,7971,235,479143,744587,093442,3474,554,161
19471,675,450429,2981,237,099137,498588,312424,9464,492,603
19481,675,450435,6941,278,864138,173588,613429,5784,546,372
19491,670,122452,8401,259,407138,021605,028442,9104,568,328

Following is an analysis of the Accumulated Funds and certain Reserves for the last five yearn.

As at 31st March,Sinking Fund Reserves.Depreciation and Renewal Reserves, &c.Accident Reserves.Capital Reserves.
Funded.Not Funded.Funded.Not Funded.Funded.Not Funded.
 £££££££
1945538,52943,6581,340,538248,381176,74746,1852,221,619
1946657,85530,4031,656 885347,321191,43548,9252,168,395
1947703,9819421,78,6,543361,176203,75651,7362,374,889
1948760,278 1,973,599189,675201,54444,8492,519,551
1949802,528 1,701,850212,770203,59448,9422,786,712

SEPARATE SYSTEMS.—A more detailed analysis of the 1948–49 statistics for each undertaking is given in the following pages.

Volume of Traffic.—The number of passengers carried per car-mile is a useful guide to the relative density of traffic handled by the various undertakings. The length of track may be taken into consideration as a relevant factor. No data are available as to the length of journey per passenger.

System.Total Passengers carried.Car-miles run (Passenger Cars and Trailers).Passengers per Car-mile.*Average Fare per Passenger.

* Passenger vehicles.

    d.
Auckland84,651,3966,660,64112.712.66
New Plymouth3,307,214325,57610.162.32
Wanganui1,912,064337,4605.674.15
Wellington50,453,4623,917,11212.882.66
Christchurch22,028,9363,149,8216.993.48
Dunedin17,964,2101,494,30512.022.84
Invercargill1,808,882266,3556.792.76
    Totals182,126,16416,151,33011.282.79

Financial Transactions.—The Auckland and Wellington services provided 70.8 per cent. of the total traffic revenue for 1948–49, the former returning £940,940 or 44.4 per cent. of the total, and the latter £560,974, or 26.4 per cent.

Following is an analysis of revenue in each centre in 1948–49.

System.Traffic (Passengers and Freight).Traffic Revenue per Car-mile.*Other Revenue.Totals.
Cash.Concession.

* All vehicles.

 ££d.££
Auckland927,82713,11333.889,016949,956
New Plymouth17,01715,04023.6342832,485
Wanganui25,6927,60023.681,06534,357
Wellington243,788317,18634.378,236569,210
Christchurch204,815115,47524.4016,346336,636
Dunedin106,914105,85734.172,648215,419
Invercargill4,43916,42318.8090121,763
    Totals1,530,492590,69431.5138,6402,159,826

In 1948–49 total expenditure (including operating expenses, capital charges, and other expenditure) exceeded total revenue by £165,569, Auckland being the only undertaking to show a surplus. It should generally he noted, however, that the inclusion with capital charges of reserve fund charges, which are actually appropriations of profits, has the effect in some cases of understating a surplus or of overstating a loss. Of the total expenditure, operating-costs (£1,950,148) comprised 83.86 per cent., and capital charges (£344,658) 14.82 per cent.

An analysis of the expenditure incurred in respect of each service in 1948–49 is shown below.

System.Operating Expenditure.Capital Charges.Other Expenses.Totals.
 ££££
Auckland808,475113,61510,820932,910
New Plymouth32,3325,4701,98039,782
Wanganui35,82811,77926447,871
Wellington545,45895,6527,674648,784
Christchurch300,15379,6616,632386,446
Dunedin199,02633,4092,681235,116
Invercargill28,8765,07253834,486
    Totals1,950,148344,65830,5892,325,395

The principal item comprised in the total operating expenditure is expenses on account of traffic, which in 1948–49 represented 59.1 per cent.: followed by car-maintenance, 18.5 per cent.; track-maintenance, 10.3 per cent.: cost of power, 6.8 per cent.; and management and office expenses, 5.3 per cent. The distribution of operating expenditure in 1948–49 was as follows:—

System.Power.Traffic.Car maintenance.Track maintenance (including Electrical Equipment).Management and Office Expenses.Totals.
 ££££££
Auckland51,661517,171132,63953,94953,055808,475
New Plymouth1,80022,3314,3001,8002,10132,332
Wanganui3,30116,8368,8114,8961,98435,828
Wellington28,739328,48197,26375,95115,024545,458
Christchurch36,273139,54574,83534,15115,349300,153
Dunedin9,004112,28635,72427,08214,930199,026
Invercargill1,64614,6087,7993,5001,32328,876
  Totals132,4241,151,258361,371201,329103,7661,950,148

Annual capital charges in the way of provision for interest and sinking fund and for depreciation, reserve, and renewal funds comprised 14.8 per cent. of the total expenditure during the year ended 31st March, 1949. This percentage has decreased considerably over the last two years mainly due to a reduction in the Auckland system's provision for depreciation. Of the total provision for capital charges for the year ended 31st March, 1949, 28 per cent. consisted of interest charges and 38 per cent. of sinking fund charges. For some years the Wanganui tramways were unable to meet capital charges out of revenue, and the City Council levied a special rate for that purpose. In the case of Invercargill, the bulk of the capital charges is now paid out of withdrawals from the Depreciation Fund, as authorized by the Invercargill City Council Tramways Depreciation Fund Empowering Act, 1940, and is excluded from the figures here presented. The amounts expended on various capital charges by each system in 1948–49 were:—

System.Interest.Sinking Fund Charges.Depreciation Fund Charges.Renewal Fund Charges.Reserve Fund Charges.Accident Fund Charges.Totals.
 £££££££
Auckland46,21758,028   9,370113,615
New Plymouth1,9533,068 449  5,470
Wanganui2,8938,886    11,779
Wellington16,51520,253 29,44229,442 95,652
Christchurch22,90227,533 27,170 2,05679,661
Dunedin4,42913,51415,466   33,409
Invercargill1,374 1,9341,764  5,072
    Totals96,283131,28217,40058,82529,44211,426344,658

The following table, showing the relationship between revenue and expenditure per car-mile run, gives a useful indication of the relative prosperity of the various undertakings.

System.Per Car-mile* run, 1948–49.
Total Revenue.Operating-costs.Capital Charges.Other Expenditure.Total Expenditure.

* All vehicles.

 d.d.d.d.d.
Auckland34.2029.114.090.3933.59
New Plymouth23.9523.834.031.4629.33
Wanganui24.4325.488.380.1934.05
Wellington34.8833.425.860.4739.75
Christchurch25.6522.876.070.5129.45
Dunedin34.6031.965.370.4337.76
Invercargill19.6126.024.570.4831.07
  All systems32.0828.975.120.4534.54

Capital Value.—At the 31st March, 1949, existing electric tramways represented a capital value of £4,568,328, made up as follows:—

System.Permanent-way.Electric Equipment of Lines.Cars and other Vehicles.Land.Buildings.Miscellaneous and undefined.Totals.
 £££££££
Auckland382,36199,309196,04016,400158,804142,692995,606
New Plymouth63,4449,15823,8958968,1492,184107,726
Wanganui45,55012,32020,710 4,9508,62492,154
Wellington515,276156,562532,22752,299211,11882,7441,550,226
Christchurch419,577126,829343,13239,258152,209194,1491,275,154
Dunedin204,78841,807103,79429,16861,89210,812452,261
Invercargill39,1266,85539,609 7,9061,70595,201
  Totals1,670,122452,8401,259,407138,021605,028442,9104,568,328

These figures should be read in conjunction with the next table, which sets out the reserves available for writing down the value of the various assets. The capital values of the Auckland, Wanganui, and Christchurch systems have already been written down by amounts of £1,405,917, £187,884, and £80,780 respectively.

Accumulated funds and reserves at the 31st March, 1949, totalled £5,756,396. The whole of the sinking fund reserves, 86 per cent. of the depreciation and renewals reserves, and 81 per cent. of the accident reserves are funded in securities outside the tramway undertaking?.

Figures of accumulated funds and reserves as at 31st March, 1949, were as follows:—

System.Sinking Fund Reserves.Depreciation Reserves.Accident Reserves.Other Reserves.Totals.
 £££££
Auckland541,827833,55213,968416,4391,805,786
New Plymouth 7,186 66,04273,228
Wanganui22,548 1,576 24,124
Wellington134,499396,203155,8071,523,8422,210,351
Christchurch88,39553,33169,554806,3571,017,637
Dunedin9,503206,65211,631277,864505,650
Invercargill5,75656,316 57,548119,620
Totals802,5281,553,240252,5363,148,0925,756,396

Power Consumption.—With the exception of Christchurch, which generated 2,766,790 units during 1948–49, the whole of the power used by tramway authorities is drawn from the Government hydro-electric systems, or, as in the cases of New Plymouth and Dunedin, from municipally-owned hydro-stations linked to these systems. As a consequence, the cost per unit of the energy used is comparatively low. In using the per-unit cost figures in the next table it should be borne in mind that in the cases of Christchurch and Wanganui the power purchased is A.C. and is converted by the tramway authority to D.C. power for tramway operation, while the other authorities purchase D.C. power. The figures shown in the second column of the table include for Wanganui and Christchurch operating-expenses in connection with conversion, but not capital charges on the conversion equipment. In the case of Now Plymouth the annual power cost is independent of the number of units consumed, the present yearly charge having remained fixed since 1933–34.

Figures for the financial year ended 31st March, 1949, are:—

System.Total Units of Electrical Energy used (D.C.).Cost per Unit (D.C.).Units per Car-mile.Passengers per Car-mile.§

* Traction only. Excludes 1,326,281 units sold or used for other purposes.

† Total units.

‡ All vehicles.

§ Passenger vehicles.

  d.  
Auckland23,843,6200.523.5812.71
New Plymouth739,8000.582.2710.16
Wanganui901,2160.872.675.67
Wellington10,611,2060.652.7112.88
Christchurch8,913,2050.912.836.99
Dunedin3,130,2220.692.0912.02
Invercargill452,8560.871.706.79
Totals48,592,125*0.643.0111.28

OMNIBUS SERVICES OPERATED BY TRAMWAY AUTHORITIES.—Omnibus services were operated by all seven tramway authorities during 1948–49. Statistics for the year show that revenue amounted to £311,461, and expenditure to £396,856, leaving a deficit of £85,395. Each authority recorded a loss, the respective amounts being as follows: Christchurch, £23,710; Dunedin, £20,815; Auckland, £19,296; Wellington, £11,851; New Plymouth, £7,367; Invercargill, £2,095; and Wanganui, £261. Persons employed during 1948–49 totalled 365, made up as follows: Traffic, management, and office staff, 267; garage, 98. The number of vehicles in use was 187.

Passengers carried in 1948–49 increased by 2,196,556 as compared with the number carried in 1947–48, and bus-miles run increased by 408,523. Passengers curried by the various bus services were: Dunedin, 5,940,561; Christchurch, 5,263,507; Auckland, 4,466,870; Wellington, 3,439,080; New Plymouth, 1,201,687; Invercargill, 490,424; and Wanganui, 172,721.

Year ended 31st March,
1945.1946.1947.1948.1949.
Undertakings No.56677
Employees No.122135178331365
Salaries and wages £49,48759,58675,331163,114191,059
Capital cost of vehicles £223,904247,670305,760474,746566,899
Depreciation £90,73894,38493,606114,804130,865
Total expenditure £135,172143,454194,912326,631396,856
Revenue £130,526134,662170,463251,215311,461
Passengers carried No.9,507,6339,792,73813,260,83518,778,29420,974,850
Bus-miles No.1,438,0981,494,8382,151,0213,290,9333,699,456
Average fare per pas- d. senger3.273.263.033.123.43
Passengers per bus-mile No.6.616.556.165.715.67

CABLE TRAMWAYS.—There were three cable-tramway systems operating in New Zealand during 1948–19, one in Wellington and two in Dunedin. The two Dunedin systems have been owned by the Municipality for some years, while the Wellington system was purchased by the Wellington City Corporation during 1946–47. The systems, all of which operate on a 3 ft. 6 in. gauge, extend over routes totalling 3 miles 21 chains. The total revenue in 1948–49 amounted to £44,970, while expenditure totalled £50,927. The total revenue derived from traffic during the year was £44,560, showing an average of 2.22d. per passenger carried. The total capital value stood at £117,548 at 31st March. 1949.

Year ended 31st March,
1945.1946.1947.1948.1949.

* The Kaikorai (Dunedin) system closed down part way through the year.

† Includes the revaluation of the Kelburn system on being taken over by the Wellington City Corporation.

Undertakings No.4444*3
Employees No.7373736459
Salaries and wages £26,52931,80536,98833,01232,303
Capital value £123,073144,260125,944117,548117,548
Expenditure—     
  Operating-expenses £46,29253,74955,79044,11141,622
  Capital charges £10,34110,69510,29310,2659,305
  Total £56,63364,44466,08354,37650,927
Revenue £58,12956,87857,87948,88144,970
Passengers carried No.7,221,8156,568,5786,432,9525,439,6814,831,099
Car-miles run (including trailer miles) No.329,585340,260347,740321,737297,217
Passengers per car-mile No.21.9119.3018.5015.6016.30

Chapter 13. SECTION 13—ROADS AND ROAD TRANSPORT

Table of Contents

ROADS AND BRIDGES.—The total mileage of formed roads in New Zealand at 31st March, 1949, was 53,661, in addition to which there were 5,691 miles of bridle-tracks and 17,507 miles of unformed legal roads. Details are given in the following table.

Counties.Boroughs.Town Districts.Road Districts.Totals.

* Includes 5 miles of wood or stone.

† Includes 7 miles clay and shell.

‡ Includes 247 miles of pumice roads.

 Miles.Miles.Miles.Miles.Miles.
Formed roads and streets, paved or surfaced with—     
  Bituminous or cement concrete16426037434
  Bitumen or tar4,3072,190*107226,626
  Metal or gravel37,1541,3882384138,821
Unmetalled formed roads and streets (i.e., not paved or surfaced)7,50416182337,780
    Totals, formed roads49,1293,99943010353,661
Bridle-tracks5,594134805,691
Unformed legal roads17,13732246217,507
    Totals, all roads71,8604,33448018576,859

The formation of roads in many parts has been attended with considerable expense and difficulties, arising from the configuration of the country and the abundance of rivers. As illustrating the latter aspect, the following table, showing the number and lengths of bridges incorporated in the roads system as at 31st March, 1949, is of interest. Only bridges 25 ft. or over in length have been taken into account, no official enumeration having been made of the innumerable culverts and short bridges.

Material of which Bridge constructed.Counties.Boroughs.Town Districts.Road Districts.Totals.
No.Total Length.No.Total Length.No.Total Length.No.Total Length.No.Total Length.
 Ft. Ft. Ft. Ft. Ft. 
All concrete or stone1,392128,066737,60885683871,476136,329
Steel and concrete32735,622547,0916720  38743,433
Steel, concrete, and timber48941,519346,034    50347,553
Steel and timber77762,430173,401131  79565,862
Australian hardwood2,135200,046909,90351,720  2,230211,669
Native timbers2,690165,824433,1511259051432,750169,708
    Totals7,790633,50731137,188323,62982308,141674,554

ROADS ADMINISTRATION.—The main statutes covering roads administration in New Zealand are the Public Works Act, 1928, the Counties Act, 1920, and amendments, and the Main Highways Act, 1922, and amendments. The latter receives specific mention later.

Roads which have been declared to be Government roads are under the immediate jurisdiction of the Minister of Works. Urban roads and streets are controlled by city, borough, or town district authorities, and rural roading is controlled by County Councils and Road Boards.

Apart from Government roads, which are maintained by the State, roads and streets are maintained by the respective local authorities out of their own revenue resources. The Government does not assist in financing general road maintenance except in regard to roads which, as is explained under the next heading, have beer gazetted as main highways under the Main Highways Act, 1922, or as State highways under an amendment of 1936. In the case of extraordinary maintenance arising from storms or floods, the Minister may give special assistance to rural local authorities by way of subsidy or grant from the Consolidated Fund according to the severity of the damage and the financial position of the authority concerned.

The Government assists towards the construction of roads and bridges in counties and road districts, particularly in areas where better roading facilities are required in the interests of settlement and primary production. The sums granted by the State from the Public Works Account for this purpose may be by way of free grant or, more generally, on a subsidy basis. County Councils and Road Boards are invited each year to make application for grants and subsidies on roadworks. Finance available is allocated in the first instance by means of revote to cover commitments already entered upon in previous financial years; the balance is then allocated to new works in order of priority determined by the District Engineer and local authority officials. In some instances construction is carried out by the Ministry of Works, although usually the respective local authorities arrange for work to be undertaken. In the latter case the standard of construction, &c., must first be approved, and departmental supervision exercised, before the grant or subsidy can be uplifted.

Wherever possible, County Councils arrange to finance their roading operations from revenue, but as a general rule the construction of roads and bridges necessitates the raising of loans. Such borrowing is subject to the approval of the Local Government Loans Board.

MAIN HIGHWAYS.—Prior to the advent of the motor-vehicle only a small proportion of the total road-mileage outside of boroughs was permanently surfaced. The development of motor-traffic, however, entirely changed the complexion of the roading problem in New Zealand, as elsewhere, and better roads were demanded as motor transport became popular. Later on, with the rapid increase in the use of motor-vehicles, particularly heavy ones, it became very evident that the type of road that was suitable for slow-moving horse-drawn traffic was inadequate. It was found that under the strain of motor traffic the roads, particularly those between the main centres running parallel with railways, were deteriorating, while the necessity for changes in both construction and administration became more and more obvious. To meet the situation the Main Highways Act was passed in 1922, under which provision was made for the declaration of roads as main highways, and thus the control of arterial roads became primarily a national concern.

For the administration of the Act the Main Highways Board was constituted. The Board consists of six members—viz., two members appointed by the Government, an officer of the Ministry of Works, two representatives of County Councils, and one representative of owners of motor-vehicles. The Board administers the main highways system, but in most cases delegates its powers of maintenance, control, &c., to the local authority concerned, though at the same time exercising supervision over the standard of work. At 31st March, 1950, the length of main highways totalled 12,724 miles, compared with a total of 12,708 miles at the end of March, 1949.

Under an amendment to the Act of 1922, passed in 1936, the Board was empowered, with the approval of the Minister of Works, to classify any main highway as a “State highway,” the whole cost of maintenance and construction of such a highway (with certain exceptions) being borne by the State. Prior to 1st April, 1947, these costs were met from the Main Highways Account, but since the abolition of that account as from 1st April, 1947, maintenance expenditure is met from the Consolidated Fund and construction expenditure from the Public Works Account. Of the 12,724 miles of main highways, 5,228 miles, comprising the principal arterial traffic routes, have been classified as State highways, this being a decrease of 6 miles from the 1949 total.

Highway Districts.—In terms of the Act the Board has divided New Zealand into twenty highway districts, composed of counties grouped according to geographic situation and community of interest. For each highway district there is an advisory body, known as the District Highways Council, which is constituted to include an Engineer of the Ministry of Works and one representative of each constituent county. The principal function of these councils is to make recommendations to the Board each year as to which roads within the several districts should be declared main highways and the works which should be undertaken.

Finance.—Under the original Act there were two separate funds within the Main Highways Account—viz., the Revenue Fund and the Construction Fund, but from 1st April, 1936, these funds were amalgamated into the Main Highways Account. Revenue for main highways purposes was until 1st April, 1947, obtained from the following sources of motor taxation:—

  • Tire-tax (sections 13 and 14, Main Highways Act, 1922).

  • Motor-spirits tax (section 9 of the Motor-spirits Taxation Act, 1927).

  • Motor-registration licences, fees, &c. (section 24, Motor-vehicles Act, 1924).

  • Mileage-tax (section 8, Finance Act, 1946).

As from August, 1939, the tax on motor-spirits was increased from 10d. to 1s. 2d. per gallon for British imports, of which 8d. is ordinary Customs revenue, and from 10½d. to 1s. 2 7/10d. for foreign imports, of which 8 7/10d. is ordinary Customs revenue. Ninety-two per cent. of the revenue from the remaining 6d. per gallon was credited to the Main Highways Account until 1st April, 1947, and since then to the Consolidated Fund, while the other 8 per cent. is distributed on a population basis among cities and boroughs having a population of 6,000 or more, for expenditure on streets forming continuations of main highways. For the year ended 31st March, 1949, the amount distributed among these cities and boroughs was £207,140, and for the 1949–50 year £227,483. For those vehicles whose motive-power is not wholly derived from motor-spirits, and for trackless trolley-buses, a mileage-tax is levied, the revenue from this source being divided on a basis similar to the motor-spirits revenue.

The original Revenue Fund received an annual transfer of £35,000 from the Consolidated Fund, and the Construction Fund an annual transfer of £200,000 from the Public Works Fund, but in both cases the transfers have been discontinued since 1930. The amount so transferred from the Public Works Fund totalled £1,226,000, and interest on that sum was debited against the Main Highways Account. Section 5 of the Finance Act (No. 2), 1943, stipulated that the amount in question, until paid, was to constitute a capital liability of the Main Highways Account to the Consolidated Fund; but section 7 of the Finance Act, 1946, repealed this provision and the liability was written off as from 1st April, 1946.

Section 3 of the Finance Act (No. 2), 1947, abolished the Main Highways Account as from the 1st day of April, 1947, and all moneys standing to the credit of that account were transferred to the Public Works Account. All moneys that were previously paid into the Main Highways Account are now paid into the Public Account to the credit of the Consolidated Fund. All moneys that were previously payable out of the Main Highways Account are now payable out of moneys from time to time appropriated by Parliament for the purpose.

Section 7 of the Finance Act, 1948, provided that if the total amount appropriated in any financial year under section 3 of the Finance Act (No. 2), 1947, was less than the net revenues derived in that year which would have been payable into the Main Highways Account if that section had not been passed, the amount so appropriated shall be deemed to be increased to the amount of these net revenues.

All receipts from special taxation of motor-vehicles were not credited to the Main Highways Account (abolished since 1st April, 1947), nor are all such receipts now appropriated from the Consolidated Fund for highways purposes. As already stated, 8 per cent. of the highway-purposes share of the motor-spirits tax and a similar percentage of the mileage-tax is distributed among certain cities and boroughs, and, in addition, receipts from drivers' licences and heavy-traffic fees are collected by local authorities. The following table gives a summary of the returns from special taxation of motor-vehicles for the last five financial years.

Yield of1945–46.1946–47.1947–48.1948–49.1949–50.

* Share for highway-purposes only (first 6d.).

† Under Transport Act, 1949, as from 1st November, 1949.

‡ Not yet available.

 £££££
Tire-tax154,161210,029246,912241,13664,349
Motor-spirits tax*1,660,3972,268,2722,496,6212,598,8702,823,369
Fees, &c., under Motor-vehicles Act, 1924499,484479,412768,898736,386705,576
Mileage-tax10,02614,32313,48815,97419,997
Heavy-traffic fees427,517485,619572,639646,349
Drivers' licences97,397107,400112,505117,330
    Totals2,848,9823,565,0554,211,0634,356,045 

In the following table are shown the amounts which have been expended on main highways construction, renewal, or maintenance by the Main Highways Board during the last five years. Maintenance figures include the cost of flood damage restoration when applicable.

Class of Expenditure.1945–46.1946–47.1947–48.1948–49.1949–50.
 £££££
Construction and improvement183,256577,4311,411,0302,070,2882,246,736
Renewal217,528250,683316,836287,384436,450
Maintenance, repairs, &c.1,577,5461,795,7962,386,2812,635,8962,508,945

An analysis of the actual expenditure on maintenance in each Island, as compared with the number of motor-vehicles in each Island at 31st March of each of the last five years, appears in the following table, the percentages relating to New Zealand totals.

1945–46.1946–47.1947–48.1948–49.1949–50.
Percentage, of New Zealand Totals     
North Island—     
  Maintenance expenditure64.7167.5669.9969.4870.07
  Motor-vehicles66.0066.1666.3366.2166.26
South Island—     
  Maintenance expenditure35.2932.4430.0130.5229.93
  Motor-vehicles34.0033.8433.6733.7933.74

The following table shows the mileage of main highways in the North and South Islands as at 31st March, 1950, together with a classification as to the type of construction or surface.

Length of Main Highways.
Dustless Surface.Gravel or Macadam Surface.Clay or Pumice Surface.Totals.
 Miles.Miles.Miles.Miles.
North Island2,9533,9641907,107
South Island1,3344,983 5,617
    Totals4,4878,04719012,724

Assistance to Local Authorities.—In terms of the Act of 1922, the Main Highways Board was required to provide one-half of the cost of construction or reconstruction of main highways and one-third of the cost of maintenance and repairs. By subsequent legislation, the rate of assistance was increased, and eventually the Board was empowered to determine the basis of subsidy. Since 1st April, 1931, the standard maintenance subsidy rate has been £3 for £1, and only in exceptional circumstances is this increased. The construction or renewal of bridges was subsidized at £2 for £1 until 1st April, 1938, but from that date it was increased to £3 for £1.

In special circumstances the Board may advance money, by way of loan, to local authorities to provide for the proportion of cost payable by a local authority in respect of the construction or reconstruction of a main highway. Such loans must be repaid by instalments extending over a period (not exceeding ten years) to be agreed upon between the Board and the local authority, and interest is payable at a rate approved by the Minister of Finance.

The Board is also empowered to sell roadmaking machinery, plant, and equipment to local authorities on such terms as it thinks fit, including terms for the repayment of the purchase-money by instalments extending over not more than four years, with interest on the unpaid balance at such rate as is fixed by the Board. Since this scheme was introduced, plant, &c., has been purchased to the value of £639,432, of which sum £147,456 was outstanding at 31st March, 1950.

Main Highway Standards.—In order to qualify for financial assistance, local authorities are required to carry out works to a standard approved by the Main Highways Board. Subsidies are not payable unless the approved standard is observed, although work of a higher standard may be undertaken provided that the additional expenditure involved is found by the local authorities concerned. From time to time the Board's standards are revised to meet the latest developments in highway practice and engineering design and also to cater for the requirements of increasing traffic. Roadmaking materials used in highway works are subject to standard tests, and during recent years advances have been made in the direction of framing standard specifications which allow of a wider use of certain local materials which formerly were not accepted.

Activity During the Year Ending 31st March, 1950.—During the year ended 31st March, 1950, 329 miles of new sealing was completed, together with 35 miles of priming coat, a total of 364 miles of new work. As part of this was carried out on deviations and reconstructed sections of the older sealed highways, the not increase in dustless surfacing was 301 miles for the year, giving a New Zealand aggregate of 4,487 miles, or 35 per cent. of the total mileage of main highways. In addition, a length of 333 miles of existing sealed surfaces received a maintenance coat.

New bridging totalled 5,591 lineal feet, compared with 3,107 lineal feet in the previous year. Bailey bridging-material has aided considerably in restoring communications that had been severed by storm damage or other causes.

Motor-ways.—Legislation by means of the Public Works Amendment Act, 1947, as amended by section 44 of the Public Works Amendment Act, 1948, makes provision for the declaration of limited-access highways or, more shortly, motor-ways. It is emphasized that motor-ways are not merely better all-purpose highways. Although work is continually in progress to improve the arterial roads of the country, such improvements will not create the characteristics or allow of the functions of a motor-way.

In addition to providing the most efficient and economic transport service, the main distinguishing features of a motor-way are the control of access and the total elimination of ribbon development, both of which will go far to improve road safety and prevent obsolescence.

The proportion of motor-vehicles to population in New Zealand is greater than in any other country of the world except the United States of America. With the continuing increase of motor-vehicles on the highways, particularly passenger-buses and heavy haulage trucks, it has become apparent that the capacities of the existing main routes adjacent to the chief cities are already being overtaxed. This increases the direct costs of transportation and, of greater importance, adds to the accident potential of these roads.

Hitherto when a route became overtaxed it was a common practice to construct an ordinary new highway to by-pass the town or other congested area. This new highway immediately attracted mushroom settlement, and tended to depreciate values of existing townships by movement of population to the new route, with the result that congestion and high accident rates again occurred. Avoidance of these mistakes will be achieved by means of the new legislation, for until its passing no legal authority was available to prevent ribbon development along new roads or to confer the right of building highways for the exclusive use of motor-vehicles.

By restricting access to specially designed junctions and by prohibiting any building development fronting and stretching out along the by-pass motor-ways, the present community balance will not be disturbed.

Motor-ways are constructed generally as four-lane routes, with a central strip separating the two up lanes from the two down lanes. Not only are there such obvious safety features as avoidance of head-on crashes and collisions caused by glare from headlights, &c., but congestion caused by a slow-moving vehicle holding up a column of traffic is also prevented.

All roads, ordinary highways, and railways will be separated from motor-ways by overbridges or subways, thus eliminating the prolific source of accidents resulting from intersection collisions. As the motor-ways are restricted to usage by motor-vehicles, this will constitute an additional safety measure, since between 40 per cent. and 50 per cent. of road accidents involve pedestrians or cyclists. At the same time, vehicular traffic will be removed from the residential are as and townships.

Considerable savings in transport costs will ensue from the provision of motor-ways, by virtue of economies in travelling-time and cost of travel.

There is no intention of building motor-ways throughout New Zealand, for motor-ways are not considered justified until traffic intensities reach an average of three thousand vehicles per day. Only small proportions of the total routes extending over the length of either the North or the South Island carry a volume of traffic of this extent. The first section of the Wellington-Foxton motorway, being the three-mile portion between Johnsonville and Takapu Road, was opened for traffic on the 23rd December, 1950.

TOTAL EXPENDITURE ON ROADS BY GENERAL GOVERNMENT AND LOCAL AUTHORITIES.—The following table compiled from Transport Department sources shows the total expenditure upon roads, streets, and bridges for the years quoted. The amounts expended on maintenance and const ruction of main highways differ from those given on page 243 since the figures given in the table presented here are inclusive of local authority expenditure on roads classed as highways, whereas the earlier data refer only to funds expended by the Main Highways Board on this account.

1939–40.1945–46.1946–47.1947–48.

* The bulk of interest is an estimate of interest on local-authority and public road-liability.

Maintenance—££££
  Main highways1,612,8691,858,5562,243,5212,911,855
  Urban roads and streets466,372570,321611,391683,668
  Other roads1,410,5811,581,9701,747,9001,770,092
  Totals3,489,8224,010,8474,602,8125,365,615
Construction—    
  Main highways3,132,162363,249883,7341,831,617
  Urban roads and streets1,351,333578,419628,404740,799
  Other roads2,021,968295,347376,052516,044
  Totals6,505,4631,237,0151,888,1903,088,460
Interest* and Sinking Fund Charges—    
  Main highways911,127717,536562,951561,852
  Urban roads and streets616,098723,237641,841662,230
  Other roads1,311,435914,9971,183,0391,169,108
    Totals2,838,6602,355,7702,387,8312,393,190
    Totals, New Zealand12,833,9457,603,6328,878,83310,847,265

The total expenditure shown in the preceding table was made available from the following sources of revenue.

1939–40.1945–46.1946–47.1917–48.

*Employment Promotion Fund abolished as from 30th September, 1939; figures for later years represent grants from Department of Labour and Employment.

† This item covers sources of revenue other than receipts by way of loans, local rates, Employment Promotion Fund and motor taxation, the latter including receipts from motor-drivers' licences and heavy traffic fees.

All roads—££££
  Loans4,271,423568,4541,129,3582,165,044
  Local rates2,751,6823,061,2243,162,4033,348,671
  Employment Promotion Fund*1,040,31949,87437,10117,394
  General taxation1,314,7051,075,098984,9161,105,093
  Motor taxation3,455,8162,848,9823,565,0554,211,063
    Totals12,833,9457,603,6328,878,83310,847,265

REGISTRATION AND LICENSING OF MOTOR-VEHICLES.—Before the Main Highways Act was passed, the Government, by the provisions of the Customs Amendment Act, 1921, and the. Finance Act, 1921–22, recognized and applied the principle that motor-vehicle owners should contribute toward the cost of the construction and upkeep of the road-surfaces which were required principally for them. By these Acts an import duty was levied on tires and tubes, the funds so obtained being used for highway construction and maintenance.

Amongst the funds specified by the Main Highways Act as being available for the Revenue Fund was a sum to be derived from the licensing of motor-vehicles. When the Main Highways Act was passed it was expected that a Motor-vehicles Act dealing with the registration and licensing of motor-vehicles would be simultaneously passed, but owing to the difficulty of co-ordinating all interests it was not until November, 1924, that the Motor-vehicles Act became law. This Act provided for the registration and annual licensing of all motor-vehicles. The Transport Act, 1949, however, repealed the Motor-vehicles Act, 1924, and as from the operating date of the 1st November, 1949, the Transport Act became the statutory authority dealing with these requirements.

Registration fees are 10s. for a motor-cycle and 20s. for any other motor-vehicle. Licence fees are as follows: Motor-cycle, 11s.; motor-car, £2 1s.; motor-omnibus, £3 1s.; trade motor (pneumatic tired), £2 1s.; trade motor (solid tired), £3 1s.; traction-engine, £5 1s.; motor-vehicle not otherwise specified, £2 1s.; trailers (two or more axles), £3 1s.; trailer (other), £1 1s. Other fees include drivers' licences, 5s.; changes of ownership, 5s. 6d.; and dealers' licences. All such fees, except that for a driver's licence, which is payable to the local authorities, and certain sums determined by the Minister of Finance (1s. 6d. for each motor-vehicle licence, and for each change of ownership, fees for supplying registration plates or licences and certification fees of particulars recorded in any register) and paid into the Post Office Account, are, in terms of the Transport Act, 1949, credited to the Consolidated Fund. Heavy-traffic fees which are referred to under the next heading, are now levied under the Transport Act, and receipts therefrom, as previously, are distributed among local authorities.

The 1949 Act provides that the annual licence may take the form of new registration-plates or be in such other form as prescribed by regulation. The Motor-vehicles (Registration and Licensing) Regulations 1949 replacing earlier emergency regulations, authorize the permanent alternative of a licensed label system instead of an annual change of registration plates. The sum of 6d. has been charged for licence stickers, and 2s. for issue or replacement of number-plates.

The following table shows the numbers of the various types of motor-vehicles licensed as at 31st March in each of the last five years.

Type of Vehicle.Licensed as at 31st March,
1946.1947.1948.1949.1950.
Cars200,492201,155216,450225,093233,812
Light trucks (i.e., 2 tons and under, laden)30,43533,13436,59140,53643,186
Heavy trucks (i.e., over 2 tons laden)23,49925,37528,83931,82334,440
Passenger trucks1,9471,9972,1002,1822,225
Omnibuses1,0251,1331,2671,3971,494
Taxis1,8531,9121,9741,9702,021
Rental cars5468281,0471,0561,200
Private-hire cars260235257239266
Service-cars595637679692689
Trailers20,03122,78825,25429,29332,860
Dealers' cars9331,2821,4211,6141,651
Local authority, &c., vehicles11,90314,4511,7,54922,00928,557
Government vehicles5,8148,2968,4559,06210,149
Motor-cycles16,11017,63418,99519,91420,733
Dealers' motor-cycles5765717580
    Totals315,500330,922360,949386,955413,363

As may be expected under war conditions, with a drastic reduction in motor-vehicle imports and the restrictions imposed on the use of motor-spirits and tires, there was a decrease in the number of motor-vehicles licensed in 1941, 1942, and 1943. The number of Government vehicles rose very substantially in 1942 and 1943, owing to the increased mechanization of the Armed Services, but the position in this respect became obscured owing to the operation of the Motor-vehicles Registration Order 1943, which released the Crown from the necessity of registering any motor-vehicle while it was being used exclusively for the purposes of any of His Majesty's naval, military, or air forces. With the release to the public of vehicles no longer required by the Armed Services, however, the 1943–44 figures for most types of vehicles showed increases over those of the previous year and, with the exception of cars, further increases were recorded in 1944–45. Totals for the last five years show the effect of the gradual lifting of restrictions and the further importations of motor vehicles. This was particularly reflected in the 1947–48 figure of cars licensed. The abolition of motor-spirits rationing as from the 1st June, 1950, is the culmination of the gradual lifting of wartime restrictions on the use of motor-spirits. The increase in the number of local authority and other vehicles exempted from the annual licence fee should not necessarily be taken as an indication of the increase in the number of local authority vehicles, as it includes a miscellaneous collection of machines such as farmers' cars and trucks used solely on the farm, excavators, scoops, trench-diggers, logging machinery, cranes, &c.

The following diagram illustrates the movement that has taken place in the number of motor-vehicles licensed, and in the consumption of motor-spirits by motor-vehicles since 1930. The fall in consumption of motor-spirits during the depression period, the effects of rationing during the war years, and the post-war recoveries, are clearly demonstrated.

The following table gives particulars of the numbers of motor-vehicles registered during each of the last seven financial years. It must not be assumed, however, that the figures are a record of the number of new vehicles introduced into the country's traffic system each year, since they include an unknown number of vehicles which have been brought back into commission after having been removed from the register. In this connection it may be mentioned that dormant registrations—i.e., vehicles the registrations of which have not been cancelled, but which have not been re-licensed for the current year—may be cancelled after the expiration of that year. If, however, a vehicle is again brought into use after its registration has been cancelled, it is treated as a new registration.

Year ended 31st March,Cars.Motor-cycles.Other Motor-vehicles.Total Registrations.
19443,0481,5119,69514,254
19453,7232,54312,02418,290
19463,5583,13911,95018,647
19479,4943,69816,84030,032
194818,4552,96418,00239,421
194911,6622,15721,45035,269
195011,7762,79123,77038,337

The most outstanding feature in the above table is the marked increase in the number of motor-car registrations in 1947–48.

ROAD TRANSPORT.—The period following the war of 1914–18 ushered in a rapid development of an already considerable road motor transport which has necessitated extensive legislation, not alone for its control but also for the provision of adequate road-surfaces. Certain principal enactments are referred to briefly in chronological order.

The Customs Amendment Act, 1921, among numerous tariff changes, imposed a tire-tax on rubber tires and tubes, previously duty free. The proceeds were credited to the Main Highways Account until 31st March. 1947, and since then to the Consolidated Fund. For an account of the moneys derived from this and other highways taxation, see Section 25B (Taxation).

The Main Highways Act of 1922, referred to earlier in this section, constituted the next landmark. Two years later came the Motor-vehicles Act, 1924 (this being repealed by the Transport Act, 1949). At the same time the Public Works Amendment Act, 1924, was passed (later included in the 1928 consolidation of that Act). Under it regulations could be made fixing in respect of commercial vehicles of over 2 tons gross weight, heavy-traffic fees payable to local authorities for road-maintenance purposes, and also classifying roads and providing other measures. Regulations to this effect were made in 1925, and are, now embodied in the Heavy Motor-vehicle Regulations 1950, replacing 1940 regulations of similar title. In the financial year 1948–49 local authorities received £646,348 by way of heavy-traffic fees, the amount in the previous year being £572,639. Present quarterly licence fees under the Heavy Motor-vehicle Regulations range from £1 6s. to £18.15s. for a pneumatic-tired vehicle. Heavy-traffic fees, less the cost of collection, &c., are apportioned among the local authorities having control of roads within each heavy-traffic district, either as may be mutually agreed upon by such local authorities or, in default of such agreement, by the Minister of Transport.

With the object of controlling motor-omnibus competition with tramways, regulations under the Board of Trade Act were issued in 1926. In She same year they were superseded by the Motor-omnibus Traffic Act, itself later repealed by the comprehensive Transport Licensing Act, 1931 (amended in 1933, 1935, 1936, 1939, and 1948). All this legislation was consolidated in 1949 by the Transport Act. 1949.

The Motor-spirits Taxation Act, 1927, imposed a duty of 4d. per gallon (raised in 1930 to 6d. per gallon; further subsequent increases are not connected with road taxation). As previously mentioned, from the net proceeds 8 per cent. is distributed on a population basis among cities or boroughs of a population of 6,000 upwards.

In 1927 the administration of the Motor-vehicles Act, 1924, was transferred to the Public Works Department, which subsequently issued in draft form regulations containing a uniform code of rules for motor-traffic in New Zealand. After full opportunity for criticism by interested parties the regulations were brought into force in 1928; they were later reissued through the Transport Department as the Traffic Regulations 1936.

The Public Works Act, 1928, contained extensive provisions relating to the construction, maintenance, and use of roads. Almost simultaneously came the Motor-vehicles Insurance (Third-party Risks) Act, 1928—vide Section 30B (Accident Insurance).

In 1929 the Transport Department Act constituted the portfolio of Minister of Transport, and also constituted the Transport Department under a Commissioner of Transport. The Act placed the administration of the following Acts under the Transport Department: Motor-vehicles Act, 1924; Motor-omnibus Traffic Act, 1926; Motor-spirits Taxation Act, 1927; Motor-vehicles Insurance (Third-party Risks) Act, 1928: and Public Works Act, 1928, in so far as it related to heavy traffic or to motor-vehicles. The Transport Licensing Act. 1931, was also under the administration of the Department. The Transport Act. 1949, consolidated all previous legislation and repealed the Acts quoted.

TRANSPORT LICENSING.—The Transport Act, 1949, which repealed the Transport Licensing Act, 1931, and its amendments, provides that any authority under the Act when dealing with an application or any other matter concerned with road transport or harbour-ferry services, is to have regard to the following:—

  1. The provision of modern transport facilities best suited according to the nature of the service to meet the needs of national production and living standards and of national defence:

  2. The fair and impartial regulation of all forms of public transport in order to develop and maintain transportation facilities adequate to meet the needs of New Zealand and of national and Commonwealth defence; and, for these purposes, to administer such facilities so as to recognize and preserve the inherent advantages of each form of transport; to promote safe, adequate, economic, and efficient service, and the fostering of sound economic conditions in transportation: to encourage the establishment and maintenance of reasonable transport charges without unjust discrimination, undue preference or advantage, or unfair or destructive practices; and to promote good working conditions for workers.

The more important provisions of the 1949 law are described in the paragraphs now given, most of these being the re-enactment of existing legislation.

The constitution of transport, goods-service, and harbour-ferry service districts was provided for in the Act, together with the establishment of a Licensing Authority for each district. For the four metropolitan transport districts, the Licensing Authorities appointed are the Auckland Transport Board and the Wellington, Christchurch, and Dunedin City Councils respectively. Goods-service districts may be identical with a transport district or be a part of the latter. The Minister of Transport may also declare any specified harbour or harbours or parts thereof to be a harbour-ferry service district.

The Licensing Authority for any transport district may also be declared to be the Licensing Authority for the goods-service district. The Act, provides for the appointment of a Licensing Authority for each harbour-ferry district instead of the former practice under which the Licensing Authority for the transport district to which the harbour is contiguous was to be the Licensing Authority for the harbour-ferry district. The Minister may authorize any specified Licensing Authority to exercise jurisdiction in respect of licences which would otherwise come within the jurisdiction of some other Licensing Authority.

The Licensing Authority, other than a Metropolitan Authority, is to consist of either one or three persons as the Minister may determine, who are appointed for a term of up to three years duration. Members are also eligible for reappointment. The sole member or the Chairman (where the Authority consists of three members) has the authority and privileges of a Magistrate in respect of proceedings.

Passenger and goods-services and harbour-ferry services are only to be carried on under licence. In the case of other than a common carrier, goods-services operating on a route between two places in which there are 30 miles or more of an open Government railway, are to be licensed unless (a) the route including the railway is longer by one-third than the shortest road route available, or (b) the owner of the motor-vehicle is a farmer or market gardener who is carrying goods in connection with his farm, or (c) the Crown or local authority or public body owns the vehicle.

A transport licence is not required (1) for the carriage to and from school of schoolchildren and their teachers only, (2) the carriage by a contract vehicle or a harbour-ferry of a private party on a special occasion, (3) carriage of workmen to and from work by the Government or a public body, where the vehicle is not designed principally for the carriage of persons and such service has been approved by the Minister for this purpose, (4) carriage of passengers in a trackless trolly omnibus, (5) in connection with funerals, carriage of newspapers, or repair and wreckage of vehicles which have met with mishap, (6) by farmers for cartage of milk, cream, or whey to and from dairy factories for their neighbours where a licensed goods-service is not available, (7) for relieving or assisting inhabitants of a locality affected by flood, earthquake, or fire, (8) carriage of showman's goods, &c., by vehicle owned by the showman, and (9) goods-services otherwise exempted by Order in Council.

In considering applications for licences, the Licensing Authority is to have regard to the extent to which any proposed service or improved service is necessary or desirable in the public interest, and the needs of the district concerned. If further consideration he then given, factors to be taken into account are existing services, financial ability of applicant to carry on the service, provision and maintenance of a reasonable standard of living and satisfactory working conditions in the transport industry, the manner in which a service has already been carried on, or the likelihood of satisfactorily carrying on a service, time-tables and frequency of service, vehicles or ferries to be used, conditions of roads, routes and load restrictions, speed, &c., and representations that may be made by various bodies, persons carrying on transport services and likely to be affected, and petitions of twenty-five or more adult persons of the locality concerned, &c.

Preference is to be given to applications by Government and local authority or other public body under certain conditions, chiefly where no existing services are available or where the proposal is for an extension of an existing service, or if the now service is wholly within the applicant's district in the case of a local authority, &c., or where there will be no competition with an existing service to the same locality by means of another route.

The Licensing Authority is to prescribe the terms and conditions of the licences such as class (continuous, seasonal, or temporary), commencement date, localities and routes, time-tables, &c.

Additional requirements may be prescribed for taxicab licences to ensure the control of the service in the interests of efficiency and of the public—e.g., complying with roster of duties, joining an organization for the purpose of obtaining telephone facilities, &c. Licences are transferable subject to certain conditions, while the maximum duration of a harbour-ferry service licence is to be ten years, and that of road transport licences to be five years.

Certificates of fitness are required for each passenger service or goods-service vehicle and all trucks with gross laden weight exceeding two tons.

The Transport Act, 1949, provided that the fixing, altering, or reviewing of charges in respect of any transport service should be carried out solely by the Transport Charges Committee or the Transport Charges Appeal Authority established under the Act. The 1950 amendment, however, abolished the Transport Charges Committee and provides that charges are to be fixed in the case of a service owned by a public body, by that body itself, and in the case of any other service, by the Commissioner of Transport, there being a right of appeal to the Transport Charges Appeal Authority in either case.

The Transport Charges Appeal Authority, as in the case of the Transport Licensing Appeal Authority, also established under the Act, is to be either a Judge of the Supreme Court or the holder of any office under any Act who is entitled to the equivalent rights and tenure of office as a Judge of the Supreme Court.

Applications to fix road and harbour-ferry charges may be made by the holder of or an applicant for, the licence; any other person whose interests are affected, being the holder of a licence, an applicant, the permanent head of a Government Department, a local authority, or a public body; any twenty-five or more adult residents of a locality in which the charges are or would be in force; all parties to a contract for the carriage of passengers or goods by any such services; and to incorporated bodies whose members have a special interest in the type of transport concerned or whose principal objects are the protection of the interests of transport operators. The power to fix fares to be charged on any road passenger service carried on by the Minister of Railways to which the Government Railways (Wellington to Johnsonville) Act, 1935, applies, is expressly excluded from the jurisdiction of the charge-fixing bodies or Appeal Authority.

The principles to be observed in determining transport charges include: the promotion and maintenance of the economic stability of New Zealand; desirability of increasing national production by granting concessions on the carriage of producers' goods; desirability of providing special fares for all regular users of passenger services and that children under four years be carried free, with children from the age of four years and under fifteen years at half adult rates; desirability of maintaining a reasonable standard of living and satisfactory working conditions in the road transport and harbour-ferry industries; and the maintenance of efficiency of the transport services to which the proceedings relate.

Included in the general provisions is one under which the owner of any motor-vehicle licensed for passenger services or goods-services and involved in an accident attended by serious injury to any person or serious damage to the property of any person shall notify the Commissioner of Transport within forty-eight hours of the occurrence.

Operations of Licensed Goods and Passenger Services.—The following tables review the operations of licensed road transport services to which the preceding paragraphs relate. The first of these tables gives the estimated overall figures concerning licensed road goods-services for the year ended 31st March, 1949.

Item.Year Ended 31st March, 1949.
Total costs£12,339,000
    Revenue£14,629,000
    Profit£2,290,000
Drawings and wages included in costs£5,292,000
Capital£11,289,000
Outside liabilities£3,340,000
Total vehicle-miles143,594,000
Vehicles owned (number)11,147
Vehicles usefully employed (number)10,506
Number of operators4,324
Average cost per vehicle mile20.62d.
Average revenue per vehicle-mile24.45d.
Average profit per vehicle-mile3.83d.
Percentage profit to operators' capital20.29
Average miles per vehicle (number)12,881
Average capital per operator£2,611
Average liabilities per operator£772

The second table shows traffic data, operating expenses, revenue, and profit of the road passenger services operating in New Zealand and inclusive of services in the four Metropolitan Transport Districts for each of the three years ended 31st March, 1940. 1948, and 1949.

Road Passenger Services.1940.1948.1949.
Traffic statistics—   
  Number of vehicle journeys2,663,9714,521,0424,757,301
  Passengers carried36,216,71990,270,667100,901,488
  Average number of passengers per vehicle journey142021
  Vehicle miles27,640,47746,419,62249,497,640
Operating expenses—£££
  Running costs566,8991,773,1471,880,154
  Standing charges668,1741,599,4471,865,875
  Overhead160,414421,108464,761
    Total operating costs1,395,4873,793,7024,210,790
Gross revenue—£££
  Passenger revenue 3,742,8424,254,673
  Other cartage 215,974288,914
  Other revenue 151,77559,307
    Total revenue1,515,1924,110,5914,602,894
Net surplus£119,705£316,889£392,104
Total operating costs, in pence per mile12.1219.6120.42
Total revenue, in pence per mile13.1621.2522.32
Net surplus, in pence per mile1.041.641.90
Average fare paid per passenger journey10.0d.10.0d.10.1d.
Number of vehicles included1,3802,1132,259

ROAD SAFETY.—During 1947 the New Zealand Road Safety Council was reconstituted. This body was first set up in 1936 to advise the Government on matters of road safety. Sub-committees have now been set up dealing with the following: the motor-driver, motor-vehicle, roads, traffic laws, traffic law enforcement, road accident statistics, road safety publicity, and child education in traffic.

Publicity directed towards road safety is carried out per medium of the press, posters, screen slides, and radio, concentrating on simultaneous presentation, as far as possible, of specific aspects of the problem. Other means employed in furthering road safety consist of traffic instruction in schools, inspection of motor-vehicles, and enforcement of traffic laws.

The Transport Act. 1949, as amended in 1950, contains several provisions designed to achieve greater safety on the roads. A maximum speed limit of 50 miles per hour is fixed, but lower limits are provided for special classes of vehicles—e.g., motor-cycles with pillion riders, 40 miles per hour, and vehicles drawing trailers, 35 miles per hour. A uniform speed-limit of 30 miles an hour is fixed in boroughs, town districts, or other localities which have been declared to be closely populated localities by notice published by the Minister of Transport in the New Zealand Gazette. The Act also gives the Minister power to exempt any road in a particular borough or town district from the provisions of the maximum speed-limit, and further exceptions are ambulances (fitted with a siren or bell) or police vehicles travelling on urgent duty, or fire-engines proceeding to a fire.

Persons convicted on indictment of negligent or reckless driving, or intoxication while in charge of a motor-vehicle, if injury to any person results from their actions, are liable to a maximum penalty of five years' imprisonment or a line of £500. Where no person is injured or where the offence as above results in summary conviction, the maximum penalty is three months' imprisonment or a fine of £100. Where any person is convicted of negligent or reckless driving or of intoxication while in charge of a vehicle the Act provides that, unless the Court directs otherwise, an order must be made cancelling the offender's licence and disqualifying him from obtaining another for a period of at least one year from the date of conviction. By the 1950 amendment application may be made after six months to the Court imposing this penalty for removal of the disqualification. The Transport Act, 1949, also prescribed penalties for careless or inconsiderate driving and the carriage of intoxicants in a public vehicle, and also makes compulsory the reporting to the police of all motor-vehicle accidents involving injury.

TRAFFIC ACCIDENTS ON ROADS.—Motor-vehicle accidents involving death or personal injury are required by law to be reported to the police, and since 15th March, 1937, very full particulars of all such accidents have been furnished to the Transport Department. For the year ended 31st December, 1949, 4,092 such accidents were reported, resulting in 218 fatalities, and in injuries to 5,317 other people. Comparative figures for the 1948 and 1947 years were (1947 figures are given in parentheses): Number of accidents, 3,593 (3,570); fatalities, 187 (188); persons injured, 4,715 (4,780). The increase in the traffic flow over the last few years, caused primarily by the progressive easing of the restrictions on the use of motor-spirits, is reflected in the corresponding increase in road accidents. New Zealand has the lowest traffic death rate (based on deaths per 10,000 licensed motor-vehicles) of any of the motorized countries, the New Zealand figure being 6.1. Details of the number and nature of road accidents for the five calendar years ended in 1949, which have been compiled by the Transport Department, are as follows:—

Nature of Accident.Number of Accidents.
1945.1946.1947.1948.1949.
Collisions—     
  Between two or more motor-vehicles7539731,1771,1161,378
  Between motor-vehicle and bicycle590689771825878
  Between motor-vehicle and pedestrian570740725763806
  Between motor-vehicle and fixed object107134145154208
  Between motor-vehicle and animal or horse-vehicle2629353428
  Between motor-vehicle and railway-train2832403039
  Between motor-vehicle and tram3846513439
  Multiple and other collisions105110145145122
 2,2172,7533,0893,1013,498
Non-collisions—     
  Drove off road6286121114151
  Went over bank80101144126162
  Overturned on roadway63100113159151
  Person fell from vehicle56867873114
  Other1637252016
 277410481492594
    Total accidents2,4943,1633,5703,5934,092

Particulars of fatal motor-vehicle accidents included in the foregoing table are now given. It should be noted that the figures relate to the number of accidents and not to the number of deaths, which, as stated above, numbered 218 in 1949.

Nature of Accident.Number of Fatal Accidents.
1945.1946.1947.1948.1949.
Collisions, motor-vehicle with—     
  Pedestrian3354485645
  Motor-vehicle2023412850
  Train71210610
  Tram331  
  Bicycle1323212727
  Horse-vehicle or animal 1111
  Fixed object10910914
  Other69685
Went over bank or drove off roadway824263031
Otherwise916242215
    Totals109174188187198

Statistics of deaths resulting from motor-vehicle accidents are available for many years from vital statistics, these figures being discussed briefly on pages 92–93.

The next table shows the distribution of motor accidents on the system of roads and streets during the calendar year 1949.

Classification of Locality.Fatal Accidents.Non-fatal Accidents.All Accidents.
Number.Percentage of Total.Number.Percentage of Total.Number.Percentage of Total.
Four main centres4723.71,49238.31,53937.6
Secondary cities157.639710.241210.1
Boroughs 6,000–20,000 population147.140110.341510.1
Small boroughs, town districts, and closely populated localities2110.642110.844210.8
    Totals, built-up areas9749.02,71169.62,80868.6
State highways5427.368917.774318.2
Main highways2110.62696.92907.1
Other rural roads2613.12255.82516.1
    Total, open-road accidents10151.01,18330.41,28431.4
    Total accidents198100.03,894100.04,092100.0

The next table gives an analysis of the main causes of accidents in which motor-vehicles were involved during the year ended 31st December, 1949.

Cause.Percentage of Accidents Where Motorist Considered Responsible.Percentage, of Accidents Where Pedestrians Considered Responsible.Percentage of Accidents Where Cyclists Considered Responsible.Percentage of all Miscellaneous Causes.
Failure to yield right of way28 23 
Excessive speed8   
Passing or overtaking negligently4   
Failure to keep left4 5 
Cutting corner4   
Skidding4   
Pedestrian crossing roadway heedless of traffic 59  
Pedestrian stepping on to roadway without due care 13  
Pedestrian emerging from behind vehicle or object 11  
Pedestrian (child) playing on the roadway 3  
Pedestrian walking on roadway instead of using footpath.3  
Pedestrian failing to keep to correct side of road when no footpath available 3  
Inattention on the part of the rider  17 
Failure to give the proper signal  7 
Swerving negligently  6 
Reckless emergence from another road  6 
Doors open in moving vehicle   13
Animals on roadway   9
Passenger riding in insecure position   8
Miscellaneous road defects   7
Road surface slippery from rain   6

Chapter 14. SECTION 14—CIVIL AVIATION AND AIR TRANSPORT

Table of Contents

ADMINISTRATION.—Civil Aviation in New Zealand is administered by the Civil Aviation Branch of the Air Department.

The Civil Aviation Act, 1948, provides for the regulation of civil aviation and gives effect to the Convention on International Civil Aviation signed on behalf of the New Zealand Government at Chicago on 7th December, 1944.

Air transport services in New Zealand may be operated only by the New Zealand National Airways Corporation, or pursuant to a permit granted under the authority of the New Zealand National Airways Amendment Act, 1948.

Staff.—The number of staff employed in the Civil Aviation Branch as at 31st March, 1950, was 568, approximately one-fifth of whom were located in those Pacific Islands where New Zealand is responsible for the maintenance of aerodromes (or landing strips) and associated ground facilities—namely, in Fiji, the Cook Islands, Tonga, and in Western Samoa.

With the increase in the number of air services there has been considerable progress in the provision of aids to navigation. The maintenance and operation of these various units, many of which are located some distance from populated areas, has resulted in the Civil Aviation Branch having to provide staff at a number of isolated places throughout New Zealand.

Expenditure.—The expenditure of the Civil Aviation Branch for the financial year ended 31st March. 1950, was £1,525,145, while the estimated expenditure for the year ended 31st March, 1951, was £2,149,000. Departmental receipts for 1949–50 amounted to £247,827, while receipts for 1950–51 are estimated at £208,550.

The principal items of expenditure are summarized in the following table.

Subdivision of Expenditure and Principal Items.Actual Expenditure; Year Ended 31st March, 1950.Estimated Expenditure, Year Ended 31st. March, 1951.
Civil Aviation££
  Salaries231,985262,350
  Telecommunications: Purchase and maintenance120,601125,700
  Aerodromes: Works expenditure, building construction, and maintenance409,378638,000
  Aircraft: Operation, maintenance, and hire3,42852,650
  Contribution towards operational costs of—  
    British Commonwealth Pacific Airlines122,78711,300
    New Zealand National Airways Corporation 338,000
    Tasman Empire Airways, Ltd.30,000 
  Contribution to International Civil Aviation Organization8,19110,000
  Provision of fire-fighting equipment8,63022,400
  Other expenditure132,440158,710
        Totals1,067,4401,619,110
Meteorological Services  
  Salaries101,302108,640
  Land and buildings: Maintenance3,9253,900
  Meteorological equipment38,96640,750
  Meteorological services provided by other agencies18,44722,500
  Other expenditure48,26753,450
        Totals210,907229,240
South Pacific Trunk Air Route  
  Salaries60,67571,750
  Land, aerodromes, and buildings—  
    Aerodrome construction and development56,17030,000
    Building construction (including housing)11,02660,000
    Maintenance and minor services46,25350,600
  Technical equipment (purchase and maintenance)7,04529,240
  Other expenditure65,62959,060
        Totals246,798300,650
        Grand totals1,525,1452,149,000

NATIONAL AIRWAYS CORPORATION.—Provision for complete control of air transport as a national service is contained in the New Zealand National Airways Act, 1945, and its 1948 amendment. The Act provides for the establishment of the New Zealand National Airways Corporation with a capital of £1,000,000, to be paid by the Minister of Finance as and when required.

The general functions and duties of the Corporation are described in the Act as follows:—

  1. For the purpose of this Act and subject to the provisions thereof, and with full regard to the safety, efficiency, and economy of operation, the Corporation may do all that is necessary or convenient to be done for, or as incidental to, in relation to, or in connection with, the establishment, maintenance, or operation by the Corporation of air services for the transport, for reward, of passengers and goods by air within New Zealand.

  2. It shall be the duty of the Corporation to exercise the powers conferred by the last preceding subsection as fully and adequately as may be necessary to satisfy the need for air services within New Zealand and to carry out the purposes of the Act:

  3. The Corporation may act as agent for any organization engaged in the provision of air-transport services.

The Corporation is also given power to exercise, in relation to air services between New Zealand and overseas countries, powers similar to those possessed in relation to air services in New Zealand. It is also empowered to acquire shares or other interests in any organization operating an air service between New Zealand and any overseas country. The Corporation was authorized to acquire by compulsion any aircraft or other property owned by any organization which on the passing of the Act was the holder of an aircraft-service licence.

One of the initial actions of the Board of Directors of the Corporation after appointment in August, 1946, was to acquire the interests of Union Airways of New Zealand, Ltd., the principal commercial airline operator within New Zealand. It was not considered desirable for the Corporation, as such, to operate services under the New Zealand National Airways Act until its regulations and by-laws were actually gazetted. These were gazetted in March, 1947, and the Corporation first commenced to operate under its own licences on 1st April, 1947. The remaining commercial operator, Air Travel, New Zealand, Ltd., was taken over during 1947.

At 31st March, 1950, the capital liability consisting of amounts advanced by the Government in terms of the New Zealand National Airways Act was £1,500,000, on which the Corporation pays interest at the rate of 3½ per cent. per annum. Operating revenues during the year ended 31st March, 1950, amounted to £1,050,993, of which passenger fares accounted for £840,727; excess baggage, £8,227; freight, £51,103; mail-money, £45,026; charters, £81,587; and incidental revenue, £24,323. Operating expenses (including depreciation on flight equipment and ground equipment) amounted to £1,335,248, leaving a deficit on operating accounts of £284,255. Interest on capital advances amounted to £44,421, so that the net deficit for the year was £328,676.

The most important factor affecting the revenue proceeds for the last two years was the transfer of services from Rongotai and Mangere Aerodromes to Paraparaumu and Whenuapai respectively, adding considerably to the total time spent on short flights, and making the increased facilities offered by alternative means of transport more attractive to potential customers. Increased costs also arose out of these transfers, while other factors contributing to heavier costs were increases in the price of fuel and in the total of salaries and wages paid. In the past year also, poor winter loadings followed upon an accident in March, 1949.

CIVIL FLYING OPERATIONS: Domestic Services.—Scheduled air transport operations over specific routes were first commenced in New Zealand in December, 1934, on the route Inchbonnie – Hokitika – Franz Josef Glacier on the West Coast of the South Island. In April, 1935, services were commenced between Gisborne and Napier, while later in that year services across Cook Strait between Wellington-Blenheim and Nelson were being operated. Subsequent extensions of services up to the outbreak of war in September, 1939, had covered almost the whole of New Zealand.

On the outbreak of war a total of ten aircraft was taken over from the three operating companies—Union Airways of New Zealand, Ltd., Cook Strait Airways, Ltd., and Air Travel (N.Z.), Ltd. As a result, Cook Strait Airways, Ltd., ceased operations, but the other two companies maintained services on a reduced scale.

During 1946 and 1947 the New Zealand National Airways Corporation absorbed all existing scheduled commercial services, and by adding to the fleet of aircraft was able to commence new services.

During the year ended 31st March, 1950, services were being operated on the following routes—

  1. Palmerston North – Dunedin (via Wellington and Christchurch).

  2. Dunedin-Invercargill.

  3. Nelson–Wellington–Blenheim.

  4. Auckland–Wellington (via New Plymouth and Palmerston North).

  5. New Plymouth – Hamilton (operated from 13th June, 1949, to 27th February, 1950).

  6. Auckland–Gisborne (via Tauranga).

  7. Gisborne–Wellington (via Napier and Palmerston North).

  8. Auckland–Kaitaia (via Whangarei and Kaikohe).

  9. Auckland–Wellington (via Rotorua, Hamilton, and Palmerston North).

  10. Auckland–Dunedin (via Wellington and Christchurch).

  11. Wellington–Westport (via Nelson).

  12. Westport–Hokitika (via Greymouth).

  13. Hokitika–Haast (via Whataroa and Waiho).

  14. Auckland–Chatham islands (via Wellington).

  15. Wellington–Blenheim New Zealand Railways Freight Service.

    Wellington–Christchurch.

Traffic statistics for these routes for the year ended 31st March, 1950, were—

Route.Hours Flown.Miles Flown.Passenger-miles Available.Passenger-miles Used.Percentage of Seat Utilization.Passenger Ton-miles.Baggage Ton-miles.

* Statistics for the Auckland–Wellington–Christchurch–Dunedin route are included under Route No. 1 until the 1st August, 1949; thereafter they are included under Route No. 10. The service was operated by Lodestars prior to that date, and on conversion to Douglas D.C. 3's the data were included under the Auckland–Dunedin, service operating that type of aircraft.

1*6,142929,17213,625,5559,003,18466.1662,15599,063
22,112208,2221,248,690797,68663.957,7427,031
33,068339,5884,410,9643,278,29074.3228,09233,546
41,997273,6764,135,8122,823,20068.3197,03131,068
532942,210634,716263,51441.517,5492,556
62,047294,0644,472,6883,448,20677.1235,82639,489
71,895239,0363,610,3742,226,65361.7156,52024,436
82,871270,2022,386,8241,782,78574.7120,77417,536
92,425281,7953,213,7582,173,65867.8151,26523,617
109,9191,389,09929,503,45422,253,31375.41,633,865272,116
11933113,3801,723,4711,218,04970.785,21013,585
1262248,324142,42574,06452.05,197734
1385574,810210,26871,27533.95,145703
14344,728122,92864,48852.54,653868
151,949232,042     
Totals37,1984,740,34869,441,92749,478,36571.33,561,024566,348
Route.Excess Baggage Ton-miles.Freight Ton-miles.Mail Ton-miles.Total Ton-miles Available.Total Ton-miles Used.Percentage of Aircraft Utilization.

* Statistics for the Auckland–Wellington–Christchurch–Dunedin route are included under Route No. 1 until the 1st August, 1949; thereafter they are included under Route No. 10. The service was operated by Lodestars prior to that date, and on conversion to Douglas D.C. 3's the data were included under the Auckland–Dunedin service operating that type of aircraft.

1*11,34959,77133,2141,338,373865,55264.7
25633,0921,607109,05870,03564.2
33,75320,7451,522473,751287,65860.7
43,3087,7983,052427,371242,25756.7
521447511567,52920,90931.0
65,13111,0332,990447,954294,46965.7
73,02110,3333,472383,947197,78251.5
81,8782,5751,072237,087143,83560.7
92,6377,5621,692311,083186,77360.0
1035,780147,09766,4083,206,2712,155,26667.2
111,6237,4862,397184,606110,30159.7
125944143212,2176,86356.2
131582,9643,11218,30912,08266.0
1412820116616,4376,01636.6
15 745,781 846,849745,78188.1
    Totals69,6021,027,354121,2518,080,8425,345,57966.2

During the year ended 31st March, 1950. 204,707 passengers, 24,547,480 lb. of freight, and 873,305 lb. of mail were carried on these services. Of the total amount of freight carried, 21,789,779 lb. were transported by the New Zealand Railways Freight Service.

Aircraft used in the operation of services on these routes were—

Lockheed Lodestar11
Lockheed Electra1
Douglas D.C. 37
Douglas C. 47B (freighter)4
D.H. 89B Dominie6
D.H. 83 Fox Moth3
Sunderland Mk III1
Total33

The New Zealand Railways Freight Service commenced on 10th February, 1947, four return trips per day being carried out between Paraparaumu and Woodbourne. The service was operated by the R.N.Z.A.F. Air Transport Command up till 2nd June. 1947, when it was taken over by New Zealand National Airways Corporation.

At present a regular schedule of six return trips per day, with more when necessary, is operated between Paraparaumu and Woodbourne. In addition, a schedule of one return trip per week is maintained between Paraparaumu and Harewood. Douglas C. 47B freighters are used on the service.

Traffic statistics for this freight service for the years 1947 to 1950 are as follows:—

Year Ended 31st March,Trips Flow n.Hours Flown.Miles Flown.Freight. (lb.)Freight Ton-miles.
194729917322,5852,040,10171,297
19481,7861,114138,26613,081,232448,891
19492,2301,482181,63017,286,265600,682
19503,0181,949232,04221,789,779745,781

The following table gives the summarized results of the operations of scheduled commercial air services during the last eleven years. Statistics for the New Zealand Hallways Freight Service are included for 1947 and later years.

Year Ended 31st March,Hours Flown.Miles Flown.Passengers.Freight.Mail.Passenger-miles.Freight Ton-miles.*Mail Ton-miles.

* Includes excess baggage ton-miles for 1947–48 and later years.

† Does not include miles flown, freight or mail carried by R.N.Z.A.F. Air Transport.

    lb.lb.   
194010,5411,326,23451,802223,018234,9896,478,54012,24721,729
19415,036645,70237,023206,936130,8064,373,8229,58512,555
19425,206688,72338,058194,858165,6705,062,9389,43417,616
19435,576685,95330,634174,757220,5274,655,7749,42323,887
19446,421832,96637,435191,113244,6146,371,00711,42629,677
19457,129965,78751,754272,251313,0139,299,97918,82444,040
19463,5411,108,13460,193338,950428,70910,158,22122,58752,935
194716,6161,525,079110,7672,674,596605,08621,870,438161,76885,387
194827,8493,459,258154,32914,292,577597,23135,695,285574,90197,310
194932,8684,197,461174,83619,220,891752,49244,323,199843,528108,580
195037,1984,740,348204,70724,547,480873,30549,478,3651,096,956121,251

In addition to the scheduled services mentioned earlier, many non-scheduled charter and taxi flights were carried out by the New Zealand National Airways Corporation as well as by private companies. The following is a traffic summary of these services for the year ended 31st March, 1950.

Trips2,821
Hours flown1,967
Miles flora242,485
Passengers8,804
Freight (lb.)672,393

Many aspects of aerial work operations such as aerial top-dressing, rabbit poisoning, and seed sowing have seen rapid development in recent years. The following is a summary of such aerial work operations carried out during the year ended 31st March, 1950.

Type of Work.Material Dropped.Amount Dropped.Hours Flown.Area Covered.

* Not available.

Top-dressingSuperphosphate5,003 tons2,13748,741 acres.
Spreading trace elementsCobalt solution17,000 lb.195,000 acres.
Seed sowingGrass seed154,050 lb.*25,673 acres.
Rabbit poisoningPhosphorized pollard239,680 lb.**
Aerial photographyNot applicableNot applicable1404,000 square miles.

As well as the above a great deal of supply dropping has been carried out, mainly to deer cullers in remote areas. Approximately 135,000 lb. of supplies have been dropped since this type of work commenced in July, 1946.

International Services.Tasman Empire Airways: An air service from Australia to New Zealand across the Tasman Sea is the last stage of an air route from the United Kingdom to New Zealand. The first survey of this route was undertaken by Imperial Airways, Ltd., of London, in 1937. Subsequently, a company, known as Tasman Empire Airways, Ltd., was formed to operate a proposed trans-Tasman air service. The initial share capital of the company was subscribed by the three Governments in the following proportions: United Kingdom, 38 per cent.; Australia, 23 per cent.; New Zealand, 39 per cent.; these proportions being later adjusted to 20, 30, and 50 per cent. respectively. Operations were commenced on 30th April, 1940.

Details of the company's operations as at 31st March, 1950, are as follows:—

  • Route and frequency: Auckland-Sydney of 1,342 route-miles. Eight trips weekly in each direction, supplemented by flights as required using aircraft of other airlines under charter to Tasman Empire Airways, Ltd.

  • Number of aircraft: 4.

  • Description of aircraft: Short Solent (S. 45) living-boats.

  • Total normal seating capacity (per aircraft): 42.

Tasman Empire Airways, Ltd., are now operating between Wellington and Sydney also, this service having commenced in October, 1950.

Traffic statistics for the year ended 31st March, 1950, are given below.

Item.Year Ended 31st March, 1950.
Flying-boat Services.Chartered Services.
Hours flown5,739921
Miles flown1,009,184174,460
Passengers18,2614,318
Freight, inclusive of excess baggage (lb.)265,96995,654
Mail (lb.)333,98971,598
Passenger-miles available28,172,2218,028,152
Passenger-miles used24,506,2625,794,756
Percentage of seat utilization86.972.2
Passenger ton-miles2,307,599541,420
Excess baggage ton-miles19,8236,005
Freight ton-miles139,29051,219
Hail ton-miles200,21142,835
Total ton-miles available3,151,093952,253
Total ton-miles used2,666,523641,476
Percentage of aircraft utilization85.967.4

The following is a summary of traffic statistics for Tasman Empire Airways, Ltd. for the last ten years and includes services flown by other airlines under charter to the company.

Year Ended 31st March,Hours Flown.Miles Flown.Passengers.Freight.Mail.Passenger-Miles.Freight Ton-miles.*Mail Ton-miles.

* Includes excess baggage ton-miles.

    lb.lb.   
19411,181174,2001,50718,80078,1792,019,38011,24646,768
19421,382211,9201,95932,230167,2752,625,06019,280100,066
19431,265192,9602,25635,195101,7413,023,04021,05460,863
19441,502229,1402,92440,02494,1063,918,16023,94356,296
19452,798427,4605,80384,189142,8127,796,02050,36385,432
19463,270493,7646,10099,584214,7928,174,00060,019128,492
19474,863778,70411,648176,687278,78915,608,320105,697166,776
19486,128991,91618,792223,229331,92625,194,933122,506198,556
19497,2021,215,10324,597377,178345,71533,004,924207,749207,324
19506,6601,183,64422,579361,623405,58730,301,018216,337243,046

New Zealand National Airways Corporation: The Corporation continued to operate services in the South-west Pacific over the following routes:—

Route No.Route.Route Miles.Frequency.
1Auckland-Labasa (via Suva)1,453One return trip weekly.
2Auckland - Norfolk Island661One return trip weekly.
3Auckland-Rarotonga (via Norfolk Island, Nadi, Nausori. Tonga, Faleolo, and Aitutaki)3,820One return trip fortnightly.
     Total route-miles5,934 

Traffic statistics for these routes for the year ended 31st March, 1950, were:—

Item.Auckland-Labasa.Auckland-Norfolk Island.Auckland-Rarotonga.Total.

* Not available for individual services.

Hours flown9624441,3122,718
Miles flown150,57268,744198,315417,631
Passengers***6,336
Freight (lb.)***82,028
Mail (lb.)***24,642
Passenger-miles available3,915,6821,012,6522,499,0877,427,421
Passenger-miles used2,604,142864,8931,795,1675,264,202
Percentage of seat utilization67857271
Passenger ton-miles164,81958,753115,061338,633
Excess baggage ton-miles2,0024451,5253,972
Freight ton-miles10,6843,89017,25531,829
Mail ton-miles6,7194719,22716,417
Total ton-miles available426,02698,493250,789775,308
Total ton-miles used238,81480,219180,086499,119
Percentage of aircraft utilization56817264

Aircraft employed on these services were three Douglas D.C. 3 aircraft and one Short Sunderland flying-boat.

Pan American World Airways Inc.: The service between San Francisco and Auckland via Honolulu, Kingman Reef, and Pago Pago commenced by Pan American Airways after a survey flight from Honolulu to Auckland in December, 1937, was discontinued after an accident to a Clipper aircraft on 11th January, 1938. The service was resumed in 1940 on a reduced schedule, the first flight terminating at Auckland on the 18th July, 1940. Operations ceased in December, 1941, after the outbreak of hostilities with Japan.

This organization recommenced services in the Pacific on 6th June, 1946. The frequency as at the 31st March, 1950, was one return trip per week over the route Auckland-San Francisco (via Fiji, Canton Island, and Honolulu). Aircraft employed are D.C. 4's (Skymaster).

Traffic to and from New Zealand for the year ended 31st March, 1950, was—

Hours flown3,694
Miles flown770,266
Traffic entering New Zealand— 
  Passengers903
  Freight (lb.)40,229
  Mail (lb.)21,378
Traffic leaving New Zealand— 
  Passengers704
  Freight (lb.)77,426
  Mail (lb.)1,355

British Commonwealth Pacific Airlines Ltd.: The decision to establish British Commonwealth Pacific Airlines was made at a conference held in Wellington during February and March, 1946, the company being formed to operate an air service between Australia and North America, and between New Zealand and North America. The organization was set up on a tripartite basis comprised of the United Kingdom, Australia, and New Zealand. In order to commence operations at an early date Australian National Airways were chartered and the first flight from New Zealand left on 25th April, 1947, travelling over the following route: Auckland, Fiji, Canton Island, Honolulu, San Francisco, and Vancouver.

British Commonwealth Pacific Airlines commenced operating on its own account in April, 1948, using D.C. 4 (Skymaster) aircraft and operating one return trip per fortnight. On 22nd February, 1949, the frequency was changed to one return trip per week with D.C. 6 aircraft.

A formal agreement between the Governments of the United Kingdom, Australia, and New Zealand for the formation of British Commonwealth Pacific Airlines, Ltd., was signed at Canberra on 4th August, 1947. The initial capital was subscribed by the three Governments in the following proportion: Australia, 50 per cent.; New Zealand, 30 per cent.; United Kingdom, 20 per cent.

Traffic to and from New Zealand for the year ended 31st March, 1950, was—

Hours flown2,815
Miles flown750,887
Traffic entering New Zealand— 
  Passengers1,336
  Freight (lb.)95,792
  Mail (lb.)4,372
Traffic leaving New Zealand— 
  Passengers1,048
  Freight (lb.)67,388
  Mail (lb.)7,828

SUMMARY.—A summary of civil aviation activities for each of the last five financial years is contained in the following table. It should be noted that where the information is available non-scheduled services have been included, and in this respect the figures differ from those quoted previously. The operations of Aero Clubs are not included.

1945–461946–471947–481948–491949–50
Domestic services—     
Hours flown8,77615,52528,76934,80541,837
Miles flown1,132,6841,894,8113,555,6454,411,4315,126,254
Passengers carried60,968110,767157,528182,737213,511
Mail (lb.)428,709607,125597,231752,492873,305
Freight (lb.)353,5142,769,38014,465,53519,663,55325,219,873
Passenger-miles10,158,22621,870,43835,695,28544,323,19949,478,365
Mail ton-miles52,93574,48697,311108,579121,251
Freight ton-miles22,587128,704574,902843,5281,096,956
International—     
Hours flown3,2707,64913,29116,87015,933
Miles flown493,7641,322,0062,384,2793,018,3893,129,465
Passengers carried6,10013,44823,55234,72332,964
Mail (lb.)214,792307,403368,593389,930465,162
Freight (lb.)99,584232,809374,432568,669725,752

AERO CLUBS.—Practical interest in aviation was greatly stimulated by the first trans-Tasman flight of Kingsford Smith and Ulm in 1928, and to this flight the aero-club movement largely owes its inception. The steady progress made by the movement has been in a great measure due to the scheme initiated by the Government of subsidizing a limited number of light aeroplane clubs. This subsidy (abolished from the 31st March, 1937) took the form of the loan of light aircraft and payments to clubs on account of pupils qualifying for their “A” flying licences, and for male pilots renewing their licences. The payment of subsidy was discontinued on the institution of the Civil Reserve scheme, by which the Government entered into an agreement with approved clubs for the training of civil reservists and Air Force candidates. On the outbreak of war in September, 1939, the Government took over all aircraft suitable for training purposes, so that training operations of the clubs had, in most cases, to be suspended. The remaining clubs continued operations until December, 1941, when, after the Japanese entry into the war, all civil flying with the exception of commercial scheduled services, was prohibited under Proclamation issued by the Governor-General. This prohibition was lifted on 24th December, 1945. After the cessation of hostilities, an immediate resumption of club activities was not possible because of non-availability of accommodation at aerodromes and the shortage of qualified instructors. However, by 31st March, 1946, there were four clubs again in operation, the number rising in later years to the present figure of 24 aero clubs affiliated to the Royal New Zealand Aero Club.

The aircraft which had been purchased from the aero clubs by the Government at the outbreak of war were resold to the clubs to facilitate an early resumption of their activities. Assistance was also given to the clubs through the Air Training Corps flying training plan. This plan, which was inaugurated in 1947, provides for training by the clubs of selected Air Training Corps cadets, and Government subsidies are paid in connection therewith. The additional revenue received by the clubs for Air Training Corps instruction for the year ended 31st March, 1950, amounted to £25,826. A total of £539 was also received by the clubs for their services in connection with the Air Force training programme.

The following table shows in summarized form, the commercial activities of the aero clubs for the last five years, together with totals since the inception of aero club thing in 1928.

Year Ended 31St March,Aircraft in Use.Trips.Passengers.Hours Flown.Miles Flown.
194613127127292,360
1947733,1725,5121,514151,636
19481016,72111,8193,459348,711
19491085,65111,2924,174417,400
19501065,1669,5555,019501,900
Totals from 1928 to 31st March, 1950 56,70296,62926,0702,425,350

The next table gives a summary of the training activities of aero clubs for the last five years.

Year Ended 31st March,Clubs Operating.Membership.Aircraft in Use.Under Instruction.Hours Flown.Licences Current.
Associate.Flying.Dual.Solo.Dual.Solo.Private.Commercial.
194645621,1381355252294187927
1947182,1852,401733321723,29510,81873692
1948222,8682,7281013962517,32219,270972141
1949243,3592,6861084543117,48118,5041,141125
1950243,9602,5771064112957,78418,9391,349136

Details given in the two preceding tables for earlier years are available on pages 310–311 of the 1947–49 Year Book.

The types of aircraft used by the clubs include the following—D.H.: 82 (Tiger Moth), 83C (Fox Moth), 90, 94, and C.I (Chipmunk); Miles: Whitney Straight, Magister, Gemini, and Messenger: Percival: Proctor and Vega Gull; and Auster, Rearwin, Beechcraft, Taylor Cub, Waco, Wackett, and Chrislea Super Ace.

LICENCES.—The licences and certificates current at the 31st March, 1950, were as follows:—

* An instrument rating is a raving in a pilot's licence giving authority to fly under instrument flight rules.

Pilot's “A” Licence1,135
Pilot's “B” Licence372
Aircraft Engineer's Licence219
Navigator's Licence— 
  First Class40
  Second Class17
Radio Telegraph Licence— 
  First Class17
  Second Class3
  Third Class149
  Special10
Radio Telephone Licence8
Flight Engineer's Licence3
Flying Instructor's Authority69
Instrument Rating*184
Certificate of Registration284
Certificate of Airworthiness164
Public Aerodrome Licence14

METEOROLOGICAL SERVICE.—Meteorological services in New Zealand have been developed to meet the special needs of commercial and military aviation activities. All commercial aircraft, whether operating on internal air lines or on trans-ocean routes, receive for each flight an individual weather forecast from the appropriate meteorological office.

AIR MAILS.—Inland.—From 1920 onwards various attempts were made to operate air-mail services, but it was not until the inauguration of a service between Hokitika and South Westland in January, 1934, that a service of any permanency was established. The district served in this instance is one which possesses very poor transport facilities; and, though the population is sparse and the area small, the carriage of mails by air has great advantages over a land service. It is for this reason that no surcharge is made on the mail-matter carried by this service.

On the 16th March, 1936, the first regular air-mail services linking up the larger centres of population were established between Palmerston North and Dunedin, and between Nelson, Blenheim, and Wellington. As air services increased in frequency and extent the air-mail facilities were correspondingly expanded.

The rate of postage for inland air-mail correspondence was originally 2d. per ounce, but since October, 1939, has been 3d. per half-ounce, For parcels up to 28 lb., the rates range from 2s. 3d. to 13s. as from 16th July, 1950.

The numbers of letters and parcels carried by air in New Zealand during the years 1939–40 to 1949–50 are shown hereunder.

Year Ended 31st March,Letters.Parcels.
19401,884,19111,662
19411,785,8005,688
19422,214,0607,356
19433,705,00013,825
19444,436,92018,760
19457,055,90025,690
19467,968,92032,204
194711,368,00048,298
194813,008,08065,205
194913,542,72077,607
195013,839,60091,226

Overseas.—Although mails had been carried by air across the Tasman on the occasions of special flights in 1934, and one mail was despatched by air across the Pacific, via Pago and Honolulu, to the United States of America in January, 1938, permanent facilities for the despatch of mails by air from New Zealand were not established until April, 1940.

The first flight of the trans-Tasman service took place on the 30th April, 1940, connection being made at Sydney with the Empire service to London. The Empire service had been extended to Sydney in December, 1934, but until the establishment of the direct air link across the Tasman in April, 1940, it was necessary for air mails to he forwarded by sea from New Zealand to Sydney. The postage-rate to the United Kingdom was 1s. 6d. each half-ounce, and this rate remained in force until July, 1938, when the “all-up” rate of 1½ d. a half-ounce was introduced. The “all-up” rate continued until September, 1939, when on the outbreak of war there was a reversion to the former surcharge of 1s. 6d. a half-ounce. On the 4th October, 1948, the rate was reduced to 1s. 3d. a half-ounce. In June, 1940, the through service from New Zealand to London was interrupted with the entry of Italy into the war, and it was necessary for air correspondence from New Zealand for the United Kingdom to be forwarded by air via Egypt to South Africa and thence by sea to destination. Following the entry of Japan into the war, the service beyond Australia was totally interrupted in March, 1942; and it was not until the 30th June, 1944, that the through service from Australia to the United Kingdom was restored.

The service is now (1950) being operated four times weekly between Sydney and London, the transit time Auckland–Sydney–London being normally five to six days.

The trans-Pacific service operating on a regular fortnightly schedule commenced on the 20th July, 1940, the route followed being via Noumea, Suva, Canton Island, and Honolulu. This service, which was operated by Pan-American Airways, ceased on the entry of Japan into the war in December, 1941, and it was not until the 20th September, 1945, that arrangements of a temporary nature were made for the resumption of the conveyance of civilian air-mail correspondence for North America by the Royal Air Force Transport Command service, the route followed being via Suva, Canton Island, and Honolulu. The Royal Air Force Transport Command service ceased on the 18th December, 1945. The Pan-American air service was recommenced on the 6th June, 1946, and is now on a regular weekly schedule, the route being via Suva, Canton Island, and Honolulu to San Francisco. On the 25th April, 1947, British Commonwealth Pacific Airways commenced a direct service from Auckland to Vancouver, via Suva, Canton Island, Honolulu, and San Francisco, the service being a fortnightly one. In February, 1949, the frequency was increased to once weekly. Mails by the British Commonwealth Pacific Airways planes are also forwarded via Sydney to connect with services operating between Sydney and Vancouver.

Services to Norfolk Island, Fiji, Tonga, Samoa, and the Cook Islands operated by the R.N.Z.A.F. in the immediate post-war period were placed under the control of the National Airways Corporation on the 1st November, 1947.

Chapter 15. SECTION 15—POSTAL AND TELEGRAPHIC

Table of Contents

POSTAL BUSINESS.—At the 31st March, 1950, there were 1,508 post-offices in New Zealand. In addition there were 405 offices at which telephone business only was transacted.

The following table shows the numbers of articles posted during the years ended 31st March, 1947 to 1950.

Year ended 31st March,Letters, Letter-cards, and Post-cards.Accounts, Circulars, Newspapers, Packets, &c.Parcels.
1947160,680,000126,044,0007,602,000
1948159,778,000133,555,0007,734,000
1949162,131,000148,959,0008,139,000
1950169,798,000165,041,0008,185,000

Compared with the year ended 31st March, 1949, letters, letter-cards, and post-cards posted during the year ended 31st March, 1950, showed an increase of 7,667,000 (4.7 per cent.), accounts, circulars, &c., an increase of 16,082,000 (10.8 per cent.), and parcels an increase of 46,000 (0.6 per cent.).

There was only a small increase in parcel postings but this was partly accounted for by the decrease in postings of overseas food parcels (415,000 less than the previous year).

The average numbers of letters, &c., posted in New Zealand per head of population during the year ended 31st March, 1950, were: Letters, letter-cards, and post-cards, 87.0; accounts, circulars, newspapers, packets, &c., 86.0; parcels, 4.3.

The inland postage rates applicable to newspapers, magazines, packets, and parcels were increased as from the 16th July, 1950. Principal classes of rates for the latter three items are given herewith, particulars for newspapers being shown later under that heading.

  • Magazines, printed and registered in New Zealand, 1d. for each 8 oz.: other magazines and printed papers, 1d. for the first 4 oz. and ½d. each additional 2 oz.; and commercial papers, 1½ d. for first 4 oz. with an additional ½d. for each further 2 oz. up to 2 lb., over this weight being at parcel rates.

  • Packets, 3d. for the first 6 oz., and 1d. for each additional 2 oz. up to 1 lb., thereafter at parcel rates.

  • Parcels, ordinary, up to 3 lb., 9d.; to 7 lb., 1s. 6d.; to 14 lb., 2s. 8d.; to 21 lb., 4s.; and up to 28 lb., 5s. 6d. Fragile fee is 9d. extra, or if parcel is over certain dimensions, 1s. 6d. extra.

RURAL MAIL DELIVERY.—The rural-mail-delivery system was instituted in New Zealand about 1900, but owing to the high comparative cost little progress was made with it until 1922. As from the 1st January of that year a scheme was introduced whereby a nominal fee was charged for this service; the rates are 10s. per annum for a delivery thrice weekly or less frequently, or £1 for a delivery having a greater frequency. These charges do not bear heavily on the farmer, and they enable the Post Office to extend rural-mail-delivery benefits to districts which were previously without such amenities. Every comparatively well-settled district now has its network of deliveries. The rural-mail carrier delivers and collects correspondence and parcels at or near the gates of farmers, sells postage-stamps, and obtains, as required, money-orders and postal notes.

At the end of March, 1950, there were throughout New Zealand 51,827 rural boxholders, an increase of 4,466 on the figures for the previous year. The number in 1920 was 8,700.

AIR-MAIL SERVICE.—Details of the New Zealand air-mail service are given at the end of the preceding section.

OVERSEAS PARCEL-POST.—The facilities afforded for the transmission of parcels through the Post Office to places within and beyond New Zealand have proved of much convenience to the public. The regulations admit of parcels up to 22 lb. in weight being sent to Great Britain and Northern Ireland and many other countries, but to Australia, South Africa, and a few other countries the weight limit is 11 lb. Inland parcels may weigh up to 28 lb. Particulars of overseas parcels received and despatched in each of the years 1944 and 1945 and 1947 to 1949 are contained in the following table. Similar information for 1946 is not available.

Year.Overseas Parcels received.Overseas Parcels despatched.
Number.Weight.Declared Value.Customs Duty.Number.Weight.

* Not available.

  lb.££ lb.
1944279,4991,337,209855,784130,3531,517,8697,607,315
1945277,3001,325,494800,810107,304971,0004,864,710
1947265,5542,154,5032,489,309370,8831,365,00012,062,384
1948238,9821,716,9962,882,789309,4131,446,58212,786,454
1949290,5212,204,010**920,3579,235,946

NEWSPAPERS.—In May, 1950, there were 268 publications on the Post Office Register of Newspapers. Of these, 44 are published daily, 11 being morning papers and 33 evening papers. Thirteen appear three times per week, 17 twice per week, 58 weekly, 14 fortnightly, 121 monthly, and 1 at irregular intervals.

As from 16th July, 1950, the inland rate for postage of newspapers has been increased From ½d. for each 4 oz. to 1d. for the first 8 oz., and ½d. for each additional 4 oz. There is also to be a consequential adjustment to the newspaper rate to British Commonwealth countries.

MONEY-ORDERS.—A money-order issued for payment in New Zealand is limited to a maximum of £100, the commission payable being 7d. for the first £10 and 3d. for each additional £5. A money-order transmitted by telegraph also bears a telegraph fee of 1s. 6d. (from 16th July, 1950). A maximum of £40 is imposed on a money-order issued for payment overseas (some countries £10), the commission varying according to the country in which the order is payable.

Of the total money-orders issued in New Zealand during 1949, 45,462 representing an aggregate value of £152,253, were for payment overseas. Of that amount, £75,202 was payable in the United Kingdom, £71,962 in other British Commonwealth countries, and £5,089 in other countries. Money-orders issued overseas for payment in New Zealand in 1949 numbered 30,082, the total value represented being £124,651. Of this amount £74,390 was issued in the United Kingdom, £42,623 in other British Commonwealth countries, and £7,638 in other countries.

The following table gives particulars of all money-orders issued and paid during each of the last five years.

Calendar Year.Number of Offices at End of Year.Money-orders issued.Money-orders paid.
Number.Value.Commission.*Number.Value.

* Prior to the 20th August, 1948, overseas exchange on money-orders was included in commission.

   ££ £
1945925769,8577,202,20037,580763,6347,223,053
1946923903,36910,624,44041,724898,03810,692,472
1947933917,29010,804,31443,877913,46810,869,381
1948936942,65410,842,86539,114942,77910,897,406
1949970952,21410,855,64831,393934,26210,821,786

NOTE.—Since the. 1st April, 1946, savings-bank withdrawals have been paid at the smaller offices by free money-orders.

POSTAL NOTES.—Postal-notes in 39 denominations ranging from 1s. to 20s. are issued in New Zealand, the poundage payable being as follows; 1s. to 2s. 6d., 2d.; 3s. to 7s. 6d., 3d.; 8s. to 15s., 4d.; and 16s. 6d. to 20s., 5d. Postal notes are negotiable and sometimes enjoy a certain length of life as currency.

Information regarding the issue and payment of postal notes is given below.

Year ended 31st March,Number of Offices at End of Year.Postal Notes issued.Postal Notes paid.
Number.Value.*Commission.Number.Value.

* Value figures are inclusive of commission shown in next column.

   ££ £
19461,1032,266,285982,59732,1062,227,817935,446
19471,1052,354,4771,028,11133,3942,329,605985,968
19481,1062,464,7831,071,61334,8282,417,1491,035,315
19491,1292,483,9291,106,47935,9482,479,8101,072,201
19501,1232,460,7621,119,66736,4012,457,2031,078,641

British postal orders issued in New Zealand during the year ended 31st March, 1950, numbered 37,857, for a total value of £17,904. Those paid numbered 36,875 and represented £28,272 in value.

TELEGRAPH AND TELEPHONE SERVICES.—Up to the 31st March, 1950, a total sum of £19,989,278 had been expended on telegraph construction, including the construction of telephone exchanges. The amount expended during the financial year 1949–50 was £3,420,502.

During the year ended 31st March, 1950, the revenue from telegrams and toll communications was £2,733,393, of which £571,821 represented ordinary telegrams, £102,048 press telegrams, and £2,059,524 toll communications. To these figures should be added £2,540,124 revenue of telephone exchanges and £189,085 miscellaneous receipts, making a total telegraph and telephone revenue of £5,462,602.

Year Ended 31st March,Number of Paid Telegrams and Toll Messages Forwarded During the Year.Revenue (Including Miscellaneous Receipts).Total Value of Business.
Telegraph and Toll.Telephone Exchange.
  £££
194629,122,3442,366,1872,062,3554,428,542
194730,604,7452,612,5642,050,3134,662,877
194831,482,0892,671,4312,210,0874,881,518
194932,955,1792,845,1142,380,7155,225,829
195034,983,3352,922,4782,540,1245,462,602

The number of paid telegrams forwarded in 1949–50 was 7,928,999, a decrease of 253,150 (3.3 per cent.) as compared with 1948–49, while the number of toll communications (27,054,336) showed an increase of 1,775,006 (7.0 per cent.).

As from 16th July, 1950, the charge for ordinary telegrams on week-days has been 1s. for eight words or loss, and 1d. for each additional word. The charge for letter-telegrams, which are delivered by post on the morning following the day of lodgment, is a flat rate of 1s. 3d. for twenty-two words, and 1d. for each additional two words. On Sundays and departmental holidays the rate for ordinary telegrams is 1s. 6d. for eight words or less, and 1½ d. for each additional word, the total charge being taken to the next penny where necessary. An additional charge of 8d. is made for an urgent telegram, irrespective of the number of words contained in the message.

TELEPHONE-EXCHANGE SERVICE.—At the 31st March, 1950, there were 358 telephone exchanges in New Zealand. Of this number, 325 were of the magneto type, 2 central battery, and 31 automatic.

The following statement shows the automatic-exchange equipment installed and in use in New Zealand on the 31st March, 1950.

 Capacity of Equipment Installed.Equipment in use.
 No.No.
Individual lines100,95595,569
Party-lines—  
Two-party6,8506,648
Four-party3,1002,777
Multi-party1,4561,145
Individual-line stations97,437 
Party-line stations37,774 
Total of main stations135,211 
Extension stations67,571 
Total number of automatic-telephone stations connected202,782 

The following table indicates the growth of the New Zealand telephone-exchange service (the figures are as at 31st March of each year shown).

1942.1943.1944.1945.1946.1947.1948.1949.1950.

*Represents separate instruments (excluding private stations) connected to main telephone system.

Exchanges346349347347347348350356358
Subscribers' main stations173,302174,088178,707183,175194,508206,337219,185234,874253,458
Toll and service stations4,8584,9344,9924,9254,8594,9975,1555,2455,360
Public call offices1,2931,3681,4201,4061,4131,4561,5501,6401,802
Extension stations52,18754,15155,63458,12060,78365,25170,66276,83283,804
Telephone-station totals*231,640234,541240,753252,626261,563278,041296,552318,591344,424

The total number of telephone-stations shows an increase of 112,784, or 49 per cent., during the period covered by the table, the net gain for each of the last five years being 8,937, 16,478, 18,511, 22,039, and 25,833 respectively. The increase in subscribers' main stations during the same period amounted to 80,156 or approximately 46 per cent., while extension stations show an increase of 31,617, or a little over 60 per cent.

In addition to the above, there are 4,115 stations connected by private telephone-lines with departmental toll-stations, making a grand total of 348,539 telephone-stations in New Zealand on the 31st March, 1950.

The “party” line system of telephone service is extensively used, particularly by those whose premises are situated at a distance from an exchange. In March, 1950, the number of “party” lines was 31,128 serving a total of 118,348 stations.

According to the latest comparative data available (January, 1949) compiled by the Chief Statistician of the American Telephone and Telegraph Co., New Zealand ranks fourth equal in the number of telephones per 100 of population; the leading countries being the United States of America (26.1), Sweden (22.1), Canada (18.8), New Zealand (17.2) and Switzerland (17.2). Although, as indicated earlier, there have been substantial increases in telephone subscribers, inability to procure the necessary equipment has greatly retarded expansion in recent years, and it is anticipated that the latest figure of 18.2 telephones per 100 of population at 31st March, 1950, will be considerably increased when adequate supplies of equipment become available and waiting applicants are provided with service.

The first public call offices (coin-in-the-slot telephones) erected in New Zealand were installed at Wellington in August, 1910. Of the total of 1,726 such instruments in use at the 31st March, 1950, the charge in 1,628 cases was 1d.; in 10, 2d.; and in 88, 3d. The revenue of these slot telephones during the year ended 31st March, 1950, was £111,939. In addition, there are 76 multi-coin slot telephones in use, the first of which was installed at Christchurch in October, 1938. These instruments take penny, sixpenny, and shilling coins and are used for effecting toll calls.

The capital expenditure on the equipment, &c., of the telephone exchanges up to the 31st March, 1949, was £13,903,752.

In order to bring telephone rental revenue into correspondence with present costs, new telephone charges were brought into operation in July, 1950. The new scale of charges together with those formerly current, is given in the following table, which also shows the reclassification of exchanges into six instead of four classes, the number of-subscribers being the determining factor in classifying exchanges.

Class of Exchange.Class or Connection.Annual Rate.
Business.Residential.
New.Former.New.Former.
  £s.£s.£s.£s.
Special (Auckland, Wellington, Christchurch, Dunedin)Individual210150120810
 2-party16010010070
 3-party1409595615
 4-party12081081060
Class I (Over 3000 subscribers)Individual160110100710
(Typical exchanges are Gisborne, Hamilton, Napier, New Plymouth, Invercargill, &c.)2-party1208081060
 3-party11071580515
 4-party1007071050
Class II (2001 to 3000 subscribers)Individual140110910710
(Typical exchanges are Hawera, Oamaru, Tauranga, Timaru, &c.)2-party110808060
 3-party100715710515
 4-party90707050
Class III (1001 to 2000 subscribers)Individual13011090710
(Typical exchanges are Cambridge, Marton, Waimate, &c.)2-party10108071060
 3-party91071570515
 4-party8107061050
Class IV (201 to 2000 subscribers with continuous attendance)Individual12010081070
 2-party1007070510
(Typical exchanges are Te Kuiti, Piopio, Waipawa, Rangiora, &c.)3-party9061061050
 4-party806060410
Class V (Up to 1000 subscribers with restricted attendance and automatic ex-changes with less than 200 subscribers)Individual1008071060
 2-party806060410
 3-party71051051040
(Typical exchanges are Akaroa, Kawhia, Te Akau, Waitotara, &c.)4-party705050310

There is now no differentiation in the rentals as to the type of telephone in use, while no-reply toll fees and cable fees (for North Island – South Island calls) are abolished.

Other changes include an increase in the night concession rate (i.e., 6 p.m. to 8 a.m.) from a rate of one-half to a rate of two-thirds of the normal rate; a rise in the charges for toll calls, but with a new maximum charge of 6s. for a three-minute call in lieu of the former 11s. 1d.; and for slot telephone charges to be raised from 1d. to 2d.

OCEAN CABLES.—Telegraphic communication between New Zealand and Australia was first established by means of the Eastern Extension Telegraph Company's cable from Wakapuaka in 1876, this cable being duplicated in 1890. Subsequent developments were the opening in 1902 of the Pacific cable between Auckland and Canada via Norfolk Island and Suva, with a connection linking Norfolk Island to Brisbane; the laying of a cable direct between Auckland and Sydney in 1912; shifting of terminals from Wakapuaka to Wellington in 1917; laying a cable direct between Auckland and Suva in 1923 and duplicating the Suva-Canada cable in 1927. In 1929 a merger of British cable and wireless companies resulted in the overseas cable services being brought under the control of one authority, and as a consequence one cable to Australia was partly lifted and partly abandoned, and the route of another was altered to terminate in Auckland instead of Wellington. One of the two direct Auckland–Sydney cables later became faulty and has not been repaired. The overseas cables from New Zealand are now (a) one Auckland–Sydney direct; (b) one from Auckland to Norfolk Island linking into either the Norfolk Island – Brisbane–Sydney or Norfolk Island – Suva–Canada cable as required; and (c) one Auckland–Suva direct, linking into the second Suva–Canada cable.

RADIO COMMUNICATION: Government Stations.—The first wireless-telegraph station in New Zealand for communicating with ships at sea was opened at Wellington on the 26th July, 1911.

The principal stations under the control of the New Zealand Government are Awarua, Wellington, and Auckland on the New Zealand mainland, at Apia in Western Samoa, at Rarotonga and Niue in the Cook Islands, and at the Chatham Islands. Smaller stations are established at certain lighthouses on the New Zealand coast and also on a number of adjacent islands. Marine radio beacons are operated at the lighthouses at Cape Reinga. Cuvier Island, Puysegur Point, Tiri Tiri Island, Mokohinau, Portland Island, Stephen's Island, Baring Head, and Cape Campbell.

Communication is effected with outer islands in the Cook Group by Rarotonga-Radio through small feeder-stations at Aitutaki, Atiu, Mangaia, Manihiki, Mauke, Palmerston, Penrhyn, and Pukapuka. Small stations at Aleipata, Atafu, Fagamalo, Sataua, Palauli, Fakaofo, Nukunono, Salailua, and Tuasivi communicate with Apia-Radio. Nine communicates with Apia-Radio, Rarotonga-Radio, and Wellington-Radio.

By means of the radio-stations at Wellington, Apia, Rarotonga, and Niue, communication is maintained between New Zealand and the Pacific islands, the last three stations mentioned having direct communication with New Zealand. Wellington - Radio has also direct communication with Papeete - Radio (Tahiti), Nukualofa (Tonga), Noumea (New Caledonia), and San Francisco (United States of America).

The radio business transacted by the New Zealand coast stations during the last five years was as follows:—

Year Ended 31st March,Forwarded.Received.
Messages.Words.Post Office Revenue.Messages.Words.Post Office Revenue.
   £  £
194625,585538,90711,90446,9311,316,29222,470
194727,712630,67410,74260,8601,474,14928,050
194826,717636,37410,02065,7971,306,96319,164
194925,644545,6587,10661,6341,197,71714,309
195028,896581,9617,64373,3661,365,07016,416

The foregoing table does not include free (service) messages.

Facilities exist for the despatch of radio-telegrams to vessels at sea, and special rates operate for vessels registered in New Zealand.

Private Stations.—Private radio-stations are governed by the Radio Regulations, which were gazetted on the 21st July, 1932.

The licences for radio receiving-stations (i.e., ordinary radio licences) are designed to provide for experimental reception as well as for reception from broadcasting stations, and may be obtained at any postal money-order office on payment of the prescribed fee. Further reference to these licences will be found in Section 16, dealing with radio broadcasting.

The licences for private experimental (amateur) stations are intended to provide facilities for experimental transmission to those interested in radio science, and are issued subject to the qualifications of the applicants being satisfactory.

RECEIPTS AND PAYMENTS.—The receipts and payments of the Post and Telegraph Department for the last three financial years are now shown.

Receipts1947–48.1948–49.1949–50.
 £££
Postages3,059,3713,133,2053,022,819
Money-order and postal-note commission77,96271,99667,244
Private-box and bag rents and rural delivery fees80,25289,93794,064
Miscellaneous receipts1,250,4681,446,8081,400,343
Telegrams665,642653,382673,870
Tolls1,722,5841,854,1111,990,131
Telephone-exchange rentals2,118,1692,270,2132,399,479
    Totals£8,974,448£9,519,652£9,647,950
Payments£££
Salaries3,616,2624,178,8454,371,042
Conveyance of mails by sea and air424,374547,522494,758
Conveyance of mails by road211,423244,834277,230
Conveyance of mails by railway212,674211,101213,760
Maintenance and renewal of telecommunication system900,070844,331917,998
Motor services and workshops359,612542,769520,911
Miscellaneous1,926,1322,108,6732,411,564
Interest on capital liability746,316659,045704,000
Sick-benefit Fund11,73011,81612,978
Post Office buildings547,723350,652375,005
Superannuation Fund Subsidy 177,937192,605
    Totals£8,956,316£9,877,525£10,491,851

Receipts and payments for the last eleven years are shown by the following figures.

Year ended 31st March,Receipts.Payments.
 ££
19404,793,6914,445,906
19415,106,1944,338,903
19425,388,0134,574,136
19436,863,6215,089,889
19446,251,2425,105,982
19456,694,9015,970,244
19467,068,3976,478,956
19478,672,6407,374,561
19488,974,4488,956,316
19499,519,6529,877,525
19509,647,95010,491,851

WORK PERFORMED FOR OTHER DEPARTMENTS.—In addition to its natural functions, the Post and Telegraph Department performs an immense amount of work for other Government Departments, its widespread organization being of inestimable value in this respect. Among the principal activities in this connection are the receipt and payment of moneys on behalf of the various Departments, the more important of which are enumerated below.

  • Receipts.—Land and Income Tax Department (land-tax, income-tax, and social security charge), National Provident Fund, State Advances Corporation, Department of Agriculture (inspection fees, orchard-tax, &c.). Education Department, Marine Department (inspection of machinery fees), Public Trust Office, National Broadcasting Service (radio-licence fees, subscriptions to New Zealand Listener).

  • Payments.—Treasury Department, National Provident Fund, Social Security Department (social security benefits and war, &c., pensions), Health Department (refunds of medical expenses), Government Superannuation Board, Public Trust Office, Reserve Bank (dividend warrants and interest coupons).

Other services performed by the Post and Telegraph Department are the control of licensing of, and issue of licences in respect of, motor-vehicles and radio apparatus, provision of advice and service on radio matters to the Marino Department and the Civil Aviation Branch of the Air Department, and provision of a fleet of motor-vehicles in the larger centres for hire by other Departments. In the smaller centres Postmasters act as Registrars of Births, Deaths, and Marriages, Registrars of Electors, and agents for the Government Life Insurance Department, State Fire and Accident Insurance Office, and Customs Department.

Other activities, not strictly departmental, include the receipt of the Motor-vehicles Insurance (Third-party Risks) premiums under the Transport Act, 1949, and the issue of fishing and game licences on behalf of acclimatization societies.

STAFF.—The large volume and varied nature of the business of the Post and Telegraph Department entail the employment of a large staff. The Department is administered by the Postmaster-General and Minister of Telegraphs, with the Director-General as executive head. The staff at 31st March, 1950, was as follows: Permanent, 12,512; temporary, 4,815; non-classified, 257; total, 17,584. In addition there were 1,140 country postmasters and telephonists who acted as such in conjunction with other pursuits and did not rank as officers of the Department. There were also 69 officers of the Railways Department who acted as postmasters.

Chapter 16. SECTION 16—RADIO BROADCASTING

Table of Contents

DETAILS of the history and development of the radio broadcasting service in New Zealand are given in the 1942 and earlier issues of the Year-Book.

NEW ZEALAND BROADCASTING SERVICE.—The Broadcasting Act of 1936 established the National Broadcasting Service as from the 1st July, 1936, and vested its control in a Minister of the Crown. All property, rights, liabilities, and engagements of the pre-existing controlling authority (the Broadcasting Board) were transferred to the Crown.

The administration of the Service was placed in the hands of a Director of Broadcasting, appointed by the Governor-General in Council to hold office for a period not exceeding three years. Permanent officers in the employ of the pre-existing Board became officers of the Public Service as from the 1st July, 1936, and the Act contains other provisions relating to the appointment to the Public Service of any other persons who are possessed of technical or other expert knowledge in relation to broadcasting.

Section 9 of the Act allows for the appointment of an advisory body, called the Broadcasting Advisory Council, to consist of not more than five members to be appointed from time to time by the Governor-General on the recommendation of the Minister. Appointment to the Council is for a period of three years, except that members may be reappointed or removed from office by the Governor-General.

The Broadcasting Act, 1936, also authorized the Minister of Broadcasting to establish and operate commercial broadcasting-stations from which advertising matter might be broadcast. For every locality that is served by a commercial station the Minister is required to provide an alternative service from at least one non-commercial station. Advertising over the air is forbidden except from the commercial stations authorized under the Act. The Broadcasting Amendment Act, 1937, made legislative provision for the establishment of a National Commercial Broadcasting Service. This provision was repealed by section 4 of the Statutes Amendment Act, 1943, and from the 26th August, 1943, the National Commercial Broadcasting Service became a division of the National Broadcasting Service. In 1946 the designation was changed to the New Zealand Broadcasting Service, which comprises two divisions, the National and the Commercial.

Stations and Programmes.—There wen, at 31st March, 1950, twenty-eight broadcasting-stations, of which two are privately owned (2XM and 4XD), five are national advertising-stations—marked “(a),” and five are local stations carrying advertising four hours daily, Monday to Saturday, the balance of programme time carrying no advertising—these stations are marked “(b)” as follows:—

Station.Aerial Energy.Frequency.Normal Hours of Transmission per Week.

* 760 from 15th Feb., 1951.

† 660 from 15th Feb., 1951.

 Kilowatts.Kilocycles.Hr.Min.
1XN, Whangarei (b)2.00970490
1YA, Auckland10.00750*12120
1ZB, Auckland (a)1.001,0701260
1YD, Auckland0.751,250460
1YC, Auckland0.15880310
1XH, Hamilton (b)2.001,310490
1YZ, Rotorua10.0080010830
2XG, Gisborne (b)2.001,010490
2XM, Gisborne0.091,1801630
2YZ, Napier5.0086010830
2XP, New Plymouth2.001,370210
2XA, Wanganui (b)2.001,200490
2ZA, Palmerston North (a)2.009406542
2YA, Wellington60.0057012120
2YC, Wellington5.00650370
2ZB, Wellington (a)1.009801260
2YD, Wellington0.501,130210
2XN, Nelson2.001,340210
3YZ, Greymouth10.0092010830
3YA, Christchurch10.0069012120
3ZB, Christchurch (a)1.001,1001260
3YC, Christchurch0.30960370
3XG, Timaru (b)2.001,160490
4YA, Dunedin10.0078012120
4ZB, Dunedin (a)1.001,0401260
4YC, Dunedin0.15900370
4XD, Dunedin0.061,430130
4YZ, Invercargill5.0072010830

A further station (1 kW., 1400 kcs.) operates during the period when 2YA is broadcasting proceedings of the House of Representatives.

Station 2AP, Western Samoa, is operated by the New Zealand Broadcasting Service for the Administration, Western Samoa.

The aggregate transmission time of all stations, National, Commercial, and shortwave, amounted during the year ended 31st March, 1950, to 114,164 hours. Of the scheduled time, 114 hours were lost owing to technical defects in equipment, and SO hours on account of failures of the main power-supply, making a total Of 194 hours.

At the request of the authorities responsible for the conservation of electric power, broadcasting in recent years has been curtailed at peak hours, more particularly in the winter.

All programmes to be transmitted from the private broadcasting-stations are supervised, and the Minister has authority to prohibit the broadcasting of any programme or part of a programme which in his opinion is unsuitable for broadcasting.

The programmes of the various stations are published in the New Zealand Listener, a weekly paper which was first issued on 30th June, 1939.

Development of the Service.—The development plans of the Service, formulated in 1947, provided for the following network of stations:—

  1. International short-wave stations.

  2. National station—to provide a means of broadcasting Parliament, events of national importance, and outstanding artists.

  3. District stations—stations designed to serve the larger districts of New Zealand, to supply the best artists to the National station and broadcast the best of the “local” artists, to rebroadcast the National station, and sometimes to be rebroadcast by the National station.

  4. Alternative stations in main centres—to present alternative programmes to those of the “district” stations.

  5. Local stations—small coverage stations located in smaller and populated areas—to serve the immediate locality, to search out and encourage talent, and to act as a feeder of suitable talent to the “district” stations.

  6. Commercial stations—to provide programmes of the lighter type and also to provide a further alternative programme to that available from the “district” stations in the main centres.

  7. Mobile units—to cover districts not within convenient distance of broadcasting-stations; units designed to tour the districts recording artists, musical and dramatic organizations, as well as recording talks and local activities for broadcasting from appropriate stations.

The intention was to broadcast one local programme of first-class reception and an alternative national programme for listeners; those situated in or near one of the four main centres were to have, in addition, an alternative “district” programme and a commercial programme.

Considerable progress has been made with this programme of development, and the stations representing the various aspects of the coverage plan are as follows:—

  1. International short-wave stations:—

    station.Kc/s.Radiated Power.
    ZL29,540 
    ZL311,7807.5 kW.
    ZL415,280 
    ZL76,0807.5 kW.
  2. National station—2YA.

  3. District stations—1YA, 1YZ, 2YC, 2YZ, 3YA, 3YZ, 4YA, 4YZ.

  4. Alternative stations—1YC, 1YD, 2YD, 3YC, 4YC.

  5. Local stations—1XH, 1XN, 2XA, 2XG, 2XN, 2XP, 3XC.

  6. Commercial stations—1ZB, 2ZB, 3ZB, 4ZB, 2ZA.

Station 1YZ is a new district station of 10 kW. power, and a number of the existing stations have been or are in the process of being repowered to provide improved reception.

NATIONAL DIVISION.—An analysis of the combined programmes of the National stations for a sample week in February, 1950, showed that, of the total transmitting time, 19.21 per cent. was devoted to serious music; 49.14 per cent. to light music; 5.37 per cent. to modern dance music; 7.08 per cent. to plays, sketches, and dramatic-serials; 2.04 per cent. to sporting commentaries; 3.91 per cent. to talks, general and educative; 8.37 per cent. to news and commentaries; 2.27 per cent. to church and devotional services; and 2.61 per cent. to children's sessions.

The practice is followed of giving broadcasting engagements to the best musical and other talent available in New Zealand. During the year ended 31st March, 1950, there were 4,345 broadcasts by local artists, musical societies, bands, and other musical combinations.

The writing and production of dramatic and other special features in which local actors and actresses are employed are carried out by the Productions Branch of the New Zealand Broadcasting Service, and encouragement is being given to New Zealand writers, 53 scripts by such writers having been purchased during the year.

The recording facilities are a valuable adjunct and the studios are engaged daily in recording plays and programmes written by overseas and New Zealand authors; talks and news bulletins broadcast overseas which are rebroadcast in New Zealand at more convenient times; and historical talks, events, and other features.

The proceedings of the House of Representatives are broadcast from Station 2YA in order to acquaint the public with the provisions of the various Bills and the views of their representatives.

Regular broadcasting programmes for schools are undertaken. The weekly schedule consists of two and three-quarter hours, and the following subjects are dealt with: music appreciation, singing, rhythm for juniors, literature, history through literature, nature-study, book reviews, talks on news, social studies and science, and French lessons for post-primary pupils. The Education Department's Correspondence School also broadcasts two half-hour programmes per week.

Time signals from the Seismological Observatory are broadcast through station 2YA four times each day. The signals take the form of a series of six “dots” at intervals of one second, the last “dot” being the exact minute. These series are broadcast at 28, 29, and 30 minutes of the hour.

The time signals are broadcast daily at—

  1. 10.28, 10.29, and 10.30 a.m.

  2. 3.28, 3.29, and 3.30 p.m.

  3. 7.28, 7.29, and 7.30 p.m.

  4. 10.28, 10.29, and 10.30 p.m.

In the event of the failure of any of the above time signals, the signals are broadcast half an hour later.

In addition to the above signals, a series of six “dots” is transmitted from Station 2YA on each hour from 7 a.m. to 7 p.m. inclusive.

Fuller details of this time service may be obtained from the article on time service arrangements published in the Miscellaneous section of this Year-Book (post).

The broadcasting of weather reports and forecasts, which bad been discontinued for security reasons since 23rd December, 1940, was resumed on 2nd July, 1945.

Financial Statistics.—The following table shows the expenditure of the national stations for the last five financial years.

 1945–46.1946–47.1947–48.1948–49.1949–50.
 £££££
Programmes109,754139,689160,684204,393238,331
Maintenance of plant15,66420,07019,13915,88535,800
General administrative and running expenses122,468150,488169,723250,371283,550
Subsidies to private “B” stations225225225225225
Depreciation of assets19,46518,41626,74728,30348,023
Other expenses7,4235,8403,8992,335573
    Total expenditure£274,999£334,728£380,417£501,512£606,502

Income for the year ended 31st March, 1950, amounted to £548,237, including radio-licence fees, £516,924; and net profit on publication of the New Zealand Listener, £5,077. The total income for each of the preceding four years was: 1945–46, £480,193; 1946–47, £490,635; 1947–48, £507,320; and 1948–49, £531,095.

COMMERCIAL DIVISION.—Following the coming into operation of the Broadcasting Act, 1936, the State purchased Station 1ZB, Auckland, which had previously operated as a “B” station, and commenced the broadcasting of programmes which included advertising-matter. Commercial stations were subsequently established at Wellington (2ZB), Christchurch (3ZB), and Dunedin (4ZB), all of which were opened in 1937, while Station 2ZA (Palmerston North) was opened in 1938.

In January, 1949, a station (3XC) was opened at Timaru. This station was the first to broadcast both commercial and non-commercial programmes. Similar stations have since been opened at Whangarei (IXN), Hamilton (1XH), Wanganui (2XA), and Gisborne (2XG).

Advertising constitutes the only source of revenue of the Commercial Division, no portion of the radio-licence fees being allocated to this section. For the year 1949–50 income totalled £408,093, and expenditure £375,459, making a net profit for the year of £32,634. Corresponding figures for the previous financial year were: Income, £322,858; expenditure, £270,457; net profit, £52,401.

The programmes of the commercial stations contain a high percentage of entertainment, as compared with commercial announcements or direct advertising.

Sessions of informative value and services such as the broadcasting for missing cars and persons are provided in addition to the normal programmes.

STATISTICS OF RADIO LICENCES.—The growth in the number of radio-receiving licences is apparent from the following table. Free licences, which are referred to later, are included in the figures. The licence fee for a receiving-station, which from 1st April, 1925, had been £1 10s. per annum, was reduced to £1 5s. per annum as from 1st April, 1935.

As at 31st March,Auckland.Wellington.Canterbury.Otago.New Zealand Totals.Licences per Hundred of Population.
1940107,843127,11764,29446,428345,68221.07
1941116,454126,04665,32747,614355,44121.72
1942122,220131,38667,02850,577371,21122.71
1943121,194130,45365,93550,539368,12122.53
1944124,855133,84566,04659, 666375,41222.84
1945126,716133,70668,15550,612379,18922.57
1946130,445139,24371,36751,943392,99822.35
1947139,487143,81274,47257,452415,22323.16
1948144,646146,48474,16455,689420,98322.95
1949148,742150,37375,38557,589432,08923.07
1950155,797155,58578,28659,679449,34723.86

A summary of all radio licences in force in New Zealand as at the 31st March, 1950, follows.

District.Receiving-stations.Radio-dealers.Private Experimental.Other.Total Licences.
Amateur.Research.
Auckland155,797653633619157,108
Wellington155,58565775173879,739
Canterbury78,28630832423460,347
Otago59,679253248215156,103
Totals449,3471,8711,95617106453,297

Licences are issued free of charge to institutions for the blind and also to any blind person. In addition, public hospitals, benevolent and orphan institutions, and other charitable institutions are granted free licence privileges, provided that the sets are used for the benefit of patients or inmates. Free licence privileges have also been extended to the operation of receiving-sets in schools, where such sets are used for educational broadcast purposes. The number of free licences as at the 31st March of each of the last five years was: 1946, 1,702; 1947, 1,787; 1948, 1,837; 1949, 1951; and 1950, 2,043.

A penalty is attached to the operating of unlicensed radio apparatus.

Chapter 17. SECTION 17—LAND TENURE, SETTLEMENT, ETC.

17 A—GENERAL

OCCUPATION OF LAND.—The total area of New Zealand, excluding the island territories comprising Cook and associated islands and Tokelau Islands, and exclusive of the trust territory of Western Samoa, but inclusive of the minor islands since these form parts of land districts, is 66,390,700 acres. Of this total, 42,717,499 acres were returned in 1949 as being in occupation, including reserves and Maori lands leased, but excluding areas within borough boundaries, holdings of less than 1 acre in extent, and Maori land held on the communal system.

According to information furnished by the Lands and Survey Department, the following was the condition of the land in New Zealand as at the 31st March, 1948.

 Acres.Percentage of Total.

* The greater part of this land is unsuitable for settlement.

† Includes certain areas alienated by sale to Europeans.

Total area sold or granted and held on freehold21,869,10032.9
Total area reserved for public purposes16,661,60025.1
Total area of Crown lands leased under all tenures (exclusive of reserves leased by the Crown)15,890,70023.9
Total area of Crown land available for future disposal*2,327,3003.5
Total area of Maori land4,477,5006.8
Land unfit for settlement, including rivers, lakes, roads, &c.5,164,5007.8
    Totals66,390,700100.0

The number of holdings and percentages of total holdings in occupation, grouped according to size, as returned in each of the years 1941 and 1946–49, are given below.

Area, in Acres.Number of Holdings.Percentages of Total.
1941.1946.1947.1948.1949.1941.1946.1947.1948.1949.
1 and under 1011,26511,38011,45011,56611,46313.0413.2013.2413.3013.16
10 and under 5014,58514,01413,83813,74113,61116.8916.2516.0015.8015.63
50 and under 10012,78912,81212,82412,91212,96214.7514.8614.8314.8414.89
100 and under 20016,64616,69916,92617,13117,25019.2719.3619.5719.6919.81
200 and under 3209,8619,8629,91110,06610,08411.4211.4411.4611.5711.58
320 and under 64010,20210,39210,48610,53710,65311.8112.0512.1212.1112.23
640 and under 1,0004,1544,1544,1304,1374,2164.814.824.784.764.84
1,000 and under 5,0005,8835,8825,8815,8775,8276.816.826.806.766.69
5,000 and under 10,0005445565415405380.630.640.630.620.62
10,000 and under 20,0002942872922822780.340.380.340.320.32
20,000 and under 50,0001451451511451440.170.170.170.170.17
50,000 and over55565351510.060.060.060.060.06
    Totals86,37386,23986,48386,98587,076100.00100.00100.00100.00100.00

Although approximately 44 per cent. of holdings in 1949 were less than 100 acres in extent, the total area of such holdings represented only a little over 3 per cent. of the occupied land of New Zealand. A further 20 per cent. of the holdings ranged between 100 and 200 acres, but the aggregate area of these amounted to only a little over 5½; per cent. of the total. At the other end of the scale it is found that 66 per cent. of the occupied land was hold in areas of 1,000 acres and upwards, although the number of such holdings was only 8 per cent, of the total. Holdings of 5,000 acres and upwards, of which there were 1,011 in 1949, accounted for 39½ per cent. of the total area of occupied land.

Area of Holding, in Acres.1941.1946.1947.19481949.
 Acres.Acres.Acres.Acres.Acres.
1 and under 1052,52552,93853,06653,69253,053
10 and under 50374,038356,797350,939347,340344,548
60 and under 100925,878936,146937,483944,077949,958
100 and under 2002,330,8672,338,3152,368,6162,401,6902,417,342
200 and under 3202,476,2092,468,8172,481,3042,520,9442,527,401
320 and under 6404,614,3254,697,2904,741,9774,765,1574,823,068
640 and under 1,0003,307,7313,302,2243,289,7423,290,5593,349,984
1,000 and under 5,00011,517,58211,498,50711,496,56111,481,58711,377,539
5,000 and under 10,0003,707,1753,793,5913,676,2003,668,7593,661,138
10,000 and under 20,0004,133,4004,012,3854,083,1863,959,3673,891,586
20,000 and under 50,0004,406,4094,408,2094,615,9104,469,8764,457,035
60,000 and over5,042,1985,214,7895,004,8404,889,0054,864,847
  Totals42,888,33743,080,00843,099,82442,792,05342,717,499

Tenure of Occupied Lands.—The area of land in occupation as at 31st January in each of the years specified, classified according to tenure, is given in the following table. Freehold land includes land held on deferred payment, if occupied by the owner. Figures for intervening years are not available.

Tenure.1941.1942.1947.1948.1949.
 Acres.Acres.Acres.Acres.Acres.
Freehold21,504,84721,689,21822,233,60022,552,12822,611,835
Leasehold21,383,49021,308,18220,866,22420,239,92520,105,664
    Total area occupied42,888,33742,997,40043,099,82442,792,05342,717,499

Lands in occupation are not strictly comparable with Crown lands alienated or in process of alienation, for certain lands which were never made waste lands of the Crown have passed into the hands of Europeans. It must also be remembered that not all of the freehold land is in occupation, while (as stated previously) holdings within borough boundaries or under 1 acre in extent are excluded from the annual statistics.

Condition of Occupied Land.—The land in occupation in New Zealand at the 31st January, 1949, was classified according to condition and use as follows:—

 Acres.Percentage of Total.

* Includes areas also sown with grasses and clovers.

In cereals and crops for threshing*494,5111.16
In green, root, and other crops*682,2051.60
In fallow106,0700.25
In sown grasses and clovers—  
    Cut for hay, seed, or ensilage808,6651.89
    Not cut for hay, seed, or ensilage17,033,73439.87
In vineyards and orchards19,6610.05
In passion-fruit vines155 
In hop-vines614 
In market gardens and nurseries14,6850.03
In private gardens and pleasure-grounds83,8220.20
In plantations884,0772.07
    Total area in cultivation20,128,19947.12
Unimproved land22,589,30052.88
    Total area in occupation42,717,499100.00

Land in cultivation (under crop and in pasture) forms the subject matter of the section on agricultural and pastoral production immediately following. An indication of the condition and geographical distribution of unimproved land is afforded by the following table, which relates to the position in January, 1949.

Land District.Phormium (New Zealand Flax).Tussock and naturally established Danthonia.Fern, Scrub, and Second Growth.Standing Native Bush.Barren and Unproductive Land.Total Unimproved Occupied Land.
 Acres.Acres.Acres.Acres.Acres.Acres.
North Auckland4,185104,482825,877240,25153,0851,227,880
South Auckland1,83057,993969,687379,37363,0171,471,900
Gisborne1732,563190,719156,33015,374395,003
Hawke's Bay100318,592314,011108,99825,111766,812
Taranaki173,592158,217217,92310,514390,263
Wellington5,881382,760581,967265,81379,1931,315,614
Marlborough3,0261,144,503252,002109,419297,1491,806,099
Nelson3,202181,567317,233254,40714,751771,160
Westland7,56285,447192,572314,501110,202710,284
Canterbury1,8154,498,620198,59291,270525,6385,315,935
Otago2,7145,398,312500,260304,093357,3876,562,766
Southland6,2911,335,484347,347121,14445,3181,855,584
  Totals36,64013,543,9154,848,4842,563,5221,596,73922,589,300

SCENIC RESERVES, PUBLIC DOMAINS, AND NATIONAL PARKS.—The consolidating Scenery Preservation Act, 1908, with its amendments of 1910, 1915, 1926, 1933, 1938, and 1940, contains the major legislation dealing with the reservation of land, Crown or private, for scenic, thermal, or historic reserves. The Act is administered by a Scenery Preservation Board through the Department of Lands and Survey.

The Public Reserves, Domains, and National Parks Act, 1928, is also a consolidation of earlier measures. For the purposes of this Act public reserves do not include scenic reserves (supra), State forests (vide Section 19.—Forestry), land reserved under the Kauri-gum Industry Act, 1908, or reserves under the Tourist and Health Resorts Control Act, 1908. The Act declares the general right of the public to free access to recreational reserves, but gives limited powers—extended by the Local Authorities Empowering (Aviation Encouragement) Act, 1929—to charge for admission.

Any public reserve for health or recreational purposes vested in or acquired by the Crown may be declared a public domain. Public domains are generally administered by Domain Boards, many of which are already existing local authorities. Domain Boards may purchase land, and land may also be taken for recreation-grounds under the Public Works Act, 1928. In certain limited instances power is given to charge for admission to public domains.

National parks are administered by National Park Boards, which have power, subject to ministerial approval, to fix fees for camping or picnicking within the parks.

The following areas are as at 31st March, 1950:—

 Number.Acres.

* Revised figures after amalgamation of certain areas formerly shown as separate parks.

Reserves under Scenery Preservation Act1,292938,155
Public domains85081,570
National parks*73,050,485

Public reserves not vested in trustees or in a local authority may be leased under the Public Reserves, Domains, and National Parks Act, 1928, for any term not exceeding twenty-one years, with right of renewal for a further term. The freehold of the land cannot be acquired.

In the year ended 31st March, 1950, the area shown for reserves increased by 11,660 acres and for public domains by 1,254 acres.

LAND TRANSFER AND DEEDS REGISTRATION.—Under the land transfer system introduced in 1870 the title to land is not affected by the execution of documents. Registration is the fundamental principle, and it is only on registration that any interest passes. The Lands and Deeds Registry assumes all responsibility for tin-registration, and any person named in the register as taking an interest under a registered instrument acquires a practically indefeasible title.

The land transfer system of title by registration has great advantages over the older system of title by deeds, even when the deeds are duly registered. The state of a land transfer title can be ascertained by a search of the register with very much greater facility than can the state of a title under the deeds system, and the powers vested in Registrars under the Land Transfer Act enable them to keep the register simple, clear, and free from doubts; the simplicity of searching and of the preparation of instruments under the land transfer system enables transactions with laud under that system to be carried out at less cost than under the deeds system; and under the land transfer system there is the State guarantee of a practically indefeasible title, as mentioned previously.

These considerations led to the passing in 1924 of the Land Transfer (Compulsory Registration of Titles) Act, which has for its object the bringing under the provisions of the Land Transfer Act, 1915, of all land alienated by the Crown and not, already under the provisions of that Act, except lauds held by Maoris under their customs and usages.

The work of bringing all land titles under the provisions of the Land Transfer Act as required by the Land Transfer (Compulsory Registration of Titles) Act, 1924, has been completed except in the Auckland District. There are also a few titles in other districts that it has been considered unwise to deal with at present owing to grave doubts as to ownership, of for some other reason. It will be some time yet before the work in the Auckland District is completed. Progress during the last few years has been considerably hampered by reason of shortage of staff.

Deeds Registration.—Provision has existed since 1841 and is now contained in the Deeds Registration Act, 1908, for the registration of deeds and instruments affecting land which is not subject to the provisions of the Land Transfer Act. Registration is not essential to the validity of the instrument, but it is highly important as a record and to secure priority. The Act provides that every deed shall be void as against any person claiming for valuable consideration under any subsequent deed duly registered, unless the earlier deed was registered before the subsequent one. The Department is not responsible for the form or matter of the instruments registered beyond seeing that they are duly stamped and contain a sufficient description of the land to identify it. Provision is made for the deposit of instruments in the Deeds Registry Office for safe custody and reference, and such deposit operates as a release from any covenant for production. The Deeds Index and all recorded and deposited instruments are open to public inspection, and certified copies may be obtained on payment of the prescribed fees.

Information as to transactions under the Deeds Registration Act for each of the years 1939–40 to 1949–50 is given in the following statement.

Year ended 31st March,Deeds recorded.Fees, £
1940731615
1941488435
1942257256
1943263205
1944261236
1945196187
1946221200
1947139152
1948135148
194979100
19506173

Land Transfer.—Information as to applications to bring land under the Land Transfer Act during each of the last five years is given in the next table.

Year ended 31st March,Number.Area.Value.
Town and Suburban.Country.
  Acres.Acres.£
194618142036,691
1947136994,825
1948135711819,185
194941477740
195097355,830

The table next following shows transfers registered under the Land Transfer Act during each of the last eleven years.

Year ended 31st March,Town and Suburban Properties.Country Properties.All Properties: Total Consideration.
Number.Area.Consideration.Number.Area.Consideration.
  Acres.£ Acres.££
194022,1967,47713,922,1145,8611,038,9018,197,26922,119,383
194122,7238,08415,460,3586,1051,102,75210,277,86325,738,221
194223,22511,40516,261,0004,982915,2047,000,19123,261,191
194322,8938,50517,251,8844,764733,1986,883,48624,135,370
194426,7799,82524,563,7406,9221,404,83413,581,41838,145,158
194526,3779,68421,359,3266,9071,282,03611,099,58232,458,908
194631,23910,93825,393,0896,8211,310,55712,961,05238,354,141
194734,68512,22127,208,1588,3091,844,04817,764,34244,972,500
194832,08011,41925,039,5056,7211,756,58815,413,01340,452,518
194930,49410,95424,802,8436,0701,691,74313,607,15938,410,002
195033,18210,82227,629,1795,8761,783,38713,033,53040,662,709

The numbers of transfers shown in the table relate only to transfers of land on sale—i.e., they do not include transfers of land from trustees to beneficiaries or to new trustees, transfers of mortgages, easements, &c.

Land-transfer transactions were on a particularly heavy scale during the second half of 1943, but following the introduction of the Servicemen's Settlement and Land Sales Act, 1943, referred to later in this section, they fell away considerably in the first two months of 1944. The totals for the year ended 31st March, 1944, however, showed a substantial increase over the previous year, both town and suburban and country properties contributing to the increase. In the following year the number of transactions in regard to both town and suburban properties and country properties were only slightly below the 1943–44 figures, but in both instances there was a marked fall in the amount of consideration, 13 per cent. in the case of the former and 18.3 per cent. in the latter. In 1945–46 a substantial increase was shown in the number of town and suburban properties transferred, with a corresponding increase in the amount of consideration, while country properties showed a slight decrease in number but a noticeable increase in the amount of consideration. Further substantial increases were recorded in 1946–47, particularly in relation to country properties, but slight recessions were recorded in 1947–48 and in 1948–49 in both classes of properties. In 1949–50 the number of town and suburban properties transferred exceeded that of the previous year by 2,688, while the aggregate consideration was greater to the extent of £2,826,336. Country properties, on the other hand, showed a further decline in both number and amount of consideration, although the area involved was greater.

The increase in the figures for town and suburban properties for 1949–50 was no doubt contributed to in some measure by the exemption from control under the Servicemen's Settlement and Land Sales Act, 1943, of the sale of all lands other than farm lands, although this exemption, which is referred to later, did not come into operation until 23rd February, 1950. Although the legal formalities connected with land-transfer transactions may take some little time to complete it is of interest to note that in March. 1949, there were 2,849 transfers of town and suburban properties for a total consideration of £1,965,274, whereas comparative figures for March, 1950, were 4,012 and £3,562,370 for number and consideration respectively. Figures for later months are even more illuminating, transfers registered in the four months April–July, 1950, numbering 25,117 for a total value of £19,690,281, as compared with 18,086 in number and £8,968,878 in value in a similar period of 1949.

The activity of recent years in the property market has been due in a large measure to the rehabilitation of ex-servicemen, but it is of interest to note that the figures have been well below those for the years immediately following the First World War. In the year ended 31st March, 1920, the total number of transfers was 45,128 and the amount of consideration money £62,446,574, while in the year ended 31st March, 1921, 55,746 transfers were registered, the consideration-money being no less than £81,790,063. The area of country land involved in the transactions for these two years was 8,332.579 acres, as compared with 3,600,636 acres for the two years 1946–47 and 1947–48.

As all classes of properties are included, land-transfer figures do not give a precise indication of any changes that may take place in property values. In the case of town and suburban properties, however, the numbers involved are sufficient to smooth out changes from year to year in the proportions of different classes of property included in the total. The average amount of consideration per town and suburban property transferred in 1939–40 was £627, and this rose by successives stages to £917 in 1943–44, the year in which the Servicemen's Settlement and Land Sales Act was introduced. In 1944–45 the average fell to £810, a decrease of £107 as compared with 1943–44, while the figures for subsequent years were £813 in 1945–46, £784 in 1946–47, £781 in 1947–48, £813 in 1948–49, and £833 in 1949–50.

Further particulars relating to country properties for the year 1939–40 onwards are contained in the next table, but in this instance freehold properties only have been taken into account. From these figures in conjunction with those of the preceding, table, it will be seen that leasehold properties form a very small proportion of the total transferred in any one year. As indicated previously, very diverse types of property are included in the figures, and the averages should not be taken for more than they purport to show. This is particularly so in the case of country properties, where the number of transactions is comparatively small.

Year ended 31st March,Number.Area.Consideration.Average Value per Transaction.Average Value per Acre.
  Acres.£££
19405,297874,5037,824,3031,4778.95
19415,495918,4059,760,5731,77610.63
19424,523746,4796,545,4611,4478.77
19434,390607,6866,583,0571,50010.83
19446,3991,209,13813,106,9932,04810.84
19456,3391,045,83310,504,3131,65710.04
19466,2121,063,73812,091,1271,94611.37
19477,4981,466,56516,631,8822,21811.34
19486,0381,462,98214,539,0972,4089.94
19495,5011,289,34112,663,6272,3029.82
19505,3361,268,76312,288,8852,3039.69

Monthly statistics of transfers on sale of land registered under the Land Transfer Act are available and are published regularly in the Monthly Abstract of Statistics.

Certificates of Title Issued.—The following table shows the number of certificates issued for the last five years.

Year ended 31st March,In lieu of Crown Grunts.Under Transfer Act of 1924.Ordinary.Total.
194630833812,08112,727
194754737615,08516,008
19486645919,14919,872
194991013016,26217,302
195090135518,40019,656

SERVICEMEN'S SETTLEMENT AND LAND SALES ACT, 1943.—This Act has the dual purpose of providing machinery for the compulsory acquisition of land for the settlement of discharged servicemen and the control of sales and leases of land. Its application in regard to the former aspect is dealt with in the next subsection, and a brief outline of the main provisions in respect of the control of sales and leases is given hereunder.

The Act established a Court of record called the Land Sales Court, and a number of district Land Sales Committees. The Land Valuation Court Act, 1948, however, abolished both the Court and the Committees, as from 1st January, 1949, and established the Land Valuation Court and Land Valuation Committees, which now exercise the powers and functions previously held by the Land Sales Court and the district Land Sales Committees. All transactions for the disposal of any land, whether by way of sale, transfer, or lease, must have the consent of the Court before they can be completed. Each application to the Land Valuation Court for consent is referred to a Land Valuation Committee, which, in considering it, is enjoined to have regard to the desirability of facilitating the settlement of discharged servicemen and of preventing undue increases in the price of land, the undue aggregation of land, and its use for speculative or uneconomic purposes.

Except in cases where the Committee decides that it is not necessary to determine the basic value or basic rent, no application for the consent of the Court shall be granted if the purchase-money, rent, or other consideration exceeds the basic value or basic rent of the land, as the case may be.

In the case of farm land the basic value is deemed to be the productive value, increased or reduced by such an amount as the Committee deems necessary in order to make it a fair value for the purposes of the Act. The productive value is deemed to be an amount equal to the net annual income that can be derived from the land by the average efficient farmer, capitalized at the rate of 4½ per cent. In arriving at the net income there shall be deducted from the gross income all expenses required to be incurred in producing such income, including rates and land-tax, provision for reasonable maintenance, reasonable remuneration for the work performed by the farmer in the production of the income, and interest on the average annual value of the stock and chattels used in the farming operations, computed at the rate of 5 per cent. per annum. The gross income is determined on the basis of the prices for farm products ruling on 15th December, 1942. In deciding whether it is necessary to make any increase or reduction in the productive value of the land the Committee is required to take into consideration such matters as the nature and extent of the estate or interest of the claimant or, as the case may be, of the vendor or lessor of the land, the extent to which the value of the improvements on the land exceeds or is less than the value of the improvements normally required, and any special value that the land may have by reason of its locality.

The basic value of land other than farm land is deemed to be the value thereof as at 15th December, 1942, increased or reduced by such an amount as the Committee deems necessary to make it a fair value, taking into consideration such matters as the nature and extent of the estate or interest of the vendor or lessor in the land, and any increase or decrease since 15th December, 1942, in the value of the improvements on the land.

In determining the basic rent of any land the Committee shall have regard to the basic value of the land, the value of the lessee's interest (if any) in the improvements on the land, and all other relevant considerations, including the basic rent or the fair rent (if any) under the Fair Rents Act or the Economic Stabilization Emergency Regulations 1942. In general the rents fixed by the Fair Rents Act and the Economic Stabilization Emergency Regulations were those ruling on 1st September, 1942.

With the passing of the Tenancy Act, 1948, repealing all Fair Rents legislation and revoking certain Economic Stabilization Emergency Regulations 1942, the basic rent or fair rent will be that determined under the authority of this Act.

The above position obtained until 23rd February, 1950. Contracts entered into on or after that date for the sale or leasing of any land, not being farm land, were exempted from control under Part III of the Servicemen's Settlement and Land Sales Act, 1943, by the February, 1950, amendment to the Servicemen's Settlement and Land Sales Regulations, 1949.

The Minister of Lands has also indicated that legislation would be introduced during the 1950 session varying the basis of valuation for farm land which is still subject to the Act.

Applications under the Act.—Applications for consent to transactions filed during the year ended 31st March, 1950, numbered 36,021, as compared with 41,761 in the previous year. Of the applications filed in 1949–50, farm lands accounted for 4,334, while those made in respect of other properties numbered 31,687. Corresponding figures for 1948–19 were 4,800 and 36,961 respectively. The following table gives particulars of applications received in the various districts for the year ended 31st March, 1950, together with the totals for the previous year, and the totals from the operation of the Act (18th October, 1943) to 31st March, 1950:—

RETURN OF APPLICATIONS FOR THE YEAR ENDED 31ST MARCH, 1950

Registry.Brought Forward From Previous Year.Received During Period.Granted Without Hearing.Granted After Hearing.Granted Subject to Condition.Refused or Withdrawn.Total FinalizedAction Incomplete.
Farm lands—        
  Auckland145851407853834491977
  Hamilton1356894701714082709115
  Gisborne202051572251620025
  Napier211991164382218040
  New Plymouth402491901441925435
  Wellington4639322341173838257
  Blenheim749304106506
  Nelson332391475781524527
  Hokitika76036 1111589
  Christchurch10269047282174374052
  Dunedin9035817411386938266
  Invercargill6835220611214337149
  Totals7144,3342,6281321,3224084,490558
Other lands—        
  Auckland1,0968,1424,3556643,6225379,17860
  Hamilton4333,4152,3211039253533,702146
  Gisborne3164946081494866515
  Napier2201,7391,242145221151,89366
  New Plymouth1631,24976884921241,39220
  Wellington8416,3653,227503,0027317,010196
  Blenheim4543525112172364719
  Nelson1261,08869263571121,16747
  Hokitika223832522126224053
  Christchurch4984,3372,283452,0863174,731104
  Dunedin3562,6531,13261,3773452,860149
  Invercargill1621,23258195751851,35044
  Totals3,99331,68717,56492713,4052,92534,821859
  Totals, 1949–504,70736,02120,1921,05914,7273,33339,3111,417
  Totals, 1948–494,54241,76121,4491,35016,6942,10341,5964,707
  Totals, from 18th October, 1943, to 31st March, 1950 257,689157,12410,26976,12412,755256,2721,417

The following table shows the reductions in consideration directed by Land Sales Committees or Land Valuation Committees during the year ended 31st March, 1950, together with the totals for the year ended 31st March, 1949, and also the total reductions directed since the inception of the Act to the 31st March, 1950:—

Registry.Farm Lands.Other Lands.Totals.
Number.Amount.Number.Amount.Number.Amount.
Year Ended 31st March, 1950
  £ £ £
Auckland385129,6063,698520,9614,083650,567
Hamilton19787,9181,196180,5461,393268,464
Gisborne2315,06514716,99217032,057
Napier3815,06952076,38655891,455
New Plymouth4419,70649373,88353793,589
Wellington11578,4642,895533,2373,010611,701
Blenheim106,15416924,55017930,704
Nelson5611,85334743,75840355,611
Hokitika116,44612520,74913627,195
Christchurch21770,0612,086286,9882,303357,049
Dunedin13851,3631,377184,5011,515235,864
Invercargill12353,06057789,198700142,258
  Totals, 1949–501,357544,76513,6302,051,74914,9872,596,514
  Totals, 1948–491,518652,64415,3912,192,60816,9092,845,252
  Totals, 18th October, 1943, to 31st March, 19508,2043,242,45275,53310,383,92283,73713,626,374

The next table shows the numbers of appeals against Committees' decisions lodged and dealt with during the same periods as in the preceding table.

Registry.Number Brought Forward From Previous Year.Number Lodged.Dismissed.Allowed in Part.Allowed in Full.Withdrawn.Referred Back to Committee or Adjourned.Total Number Disposed of.Number Remaining to be Dealt With.
Year Ended 31st March, 1950
Auckland820155 5328 
Hamilton432315277342
Gisborne 3   2 21
Napier 411 2 4 
New Plymouth 511 3 5 
Wellington 196525 181
Blenheim 11    1 
Nelson 3 2  13 
Hokitika         
Christchurch2137114 132
Dunedin17212218 
Invercargill 613 1 51
  Totals, 1949–50151133734731121217
  Totals, 1948–4932172724311491418915
  Totals, 18th October, 1943, to 31st March, 1950 1,412379401114413981,4057

17 B—CROWN LANDS

THE Crown lands are now administered under the authority of the Land Act, 1948. This Act consolidated into one Act all previously existing legislation relating to the lands of the Crown, and also made certain amendments thereto. The Acts so consolidated and amended were the Land Act, 1924, the Land for Settlement Act, 1925, those provisions of the Education Reserves Act, 1928, which relate to education reserves administered by a Land Board, the Hanmer Crown Leases Act, 1928, the Small Farms Act, 1932-33, and the amendments to those Acts. It also repealed, but did not re-enact, the Discharged Soldiers' Settlement Act, 1915, the Hutt Valley Lands Settlement Act, 1925, the Deteriorated Lands Act, 1925, the Fruit-farms Settlement Act, 1910, and the amendments to those Acts. The distinction that existed between Crown land subject to the various enactments mentioned was abolished by the new Act.

The Minister of Lands is charged with the administration of the Land Act, and his executive officer is the Director-General of Lands, who is the Permanent Head of the Department of Lands and Survey.

New Zealand is divided into twelve land districts, the executive officer for each district being a Commissioner of Crown Lands. Prior to the passing of the Land Act, 1948, there was a Land Board for each district, but the new Act abolished these Boards and vested their powers, rights, obligations, &c., in a central authority entitled the Land Settlement Board. This Board consists of the Minister of Lands (Chairman), the Director-General of Lands (Deputy Chairman), the Secretary to the Treasury, the Director General of Agriculture, the Valuer-General, a representative of the State Advances Corporation, the Director of Rehabilitation, the Assistant Director of Lands, the Fields Director of the Department of Lands and Survey, a representative of the New Zealand Returned Services' Association, and not more than two other persons to be appointed by the Governor-General.

The duties of the Board are broadly defined in the Act as follows:—

“It shall be the duty of the Board to carry out the provisions of this Act for the administration, management, development, alienation, settlement, protection, and care of Crown land; and to carry out all negotiations for the purchase of land by the Crown under this Act, and the performance and completion of all contracts of purchase so entered into by the Crown.”

To replace the District Land Boards, the Land Settlement Board is required to appoint one or more Land Settlement Committees for each land district, and sixteen of these Committees have been set up. Each Committee consists of three members, including the Commissioner of Crown Lands for the land district as Chairman. The Board may also appoint as an associate member of any Committee any person who in the opinion of the Board possesses expert knowledge of advantage to the Committee in the execution of its functions, but associate members have no voting-powers. The Committees have no functions expressly set out in the Act, but the Board has wide powers of delegating to Committees any of its functions.

METHODS OF ACQUIRING CROWN LAND.—A selector may purchase for cash, or on deferred payment, or may select on renewable lease. Every applicant must be of the age of seventeen years or upwards, and may apply for Crown land solely for his own use or benefit, and not directly or indirectly for the use or benefit of any other person. Two or more persons may make application to purchase or take on lease or licence as joint tenants in common. No application for Crown land will be granted if, having regard to the land already owned, leased, held, or occupied under any tenure of more than one year's duration, the acquisition of additional land would, in the opinion of the Board, amount to undue aggregation of land. An application will also be refused if the Board considers that the land is intended to be used for speculation or for uneconomic purposes.

Crown land may be acquired on the following tenures:—

  1. Farm land or urban land—(a) On renewable lease; (b) for cash; (c) On deferred payments. A renewable lease is for a term of thirty-three years with a perpetual right of renewal for the same term, and, except where otherwise provided for, with a right of acquiring the fee-simple. The Board may, however, determine that any specified land may be taken on renewable lease only, but without the right of acquiring the fee-simple.

  2. Commercial and industrial land—(a) On renewable lease for thirty-three years; (b) on lease for any term, hut so that the aggregate term, including the renewals (if any), does not exceed fifty years. The Board may in any special case approve of the land being purchased for cash.

  3. Pastoral land—(a) On pastoral lease for a term of thirty-three years with a perpetual right of renewal for the same term, but with no right of acquiring the fee-simple; (b) on pastoral occupation licence for a term not exceeding twenty-one years.

  4. Short tenancies for grazing or other purposes for a term not exceeding five years.

  5. Land for communal grazing—The Board may grant a lease or licence for any Grown land to any person or group or association of persons, or to any body corporate for use as communal grazing. The term is for a period not exceeding thirty-three years, with or without a right of renewal and subject to such conditions as the Board may decide.

  6. Unclassified Land.—Where in the opinion of the Board any Crown land available for disposal cannot properly be classified as farm land, urban land, commercial or industrial land, or pastoral land, the Board may sell or grant a lease for any term not exceeding thirty-three years, with or without a right of renewal, perpetual or otherwise for the same term.

Every holder of a lease or licence is required to effect within a certain specified period such improvements as the Board determines. In most cases the lessee or licensee of any farm or pastoral land is required to commence to reside on the land within one year after the date of his licence.

LAND DEVELOPMENT.—The Band Act empowers the Land Settlement Board to carry out such development works as may be required to improve the quality or condition of any Crown land or to make it fit for settlement. This includes the erection of buildings, and the Board may carry on all usual farming activities on land developed or being developed until the time is appropriate for the disposal of the land on permanent tenure.

The Board may also make advances or readvances to lessees or licensees of Crown land to assist them in the development of their holdings. Purposes for which advances may be made include erection, improvement, &c., of buildings; clearing, draining, fencing, cultivation, grassing; provision of electric power, telephone services, and water; purchase of fencing materials, fertilizers, implements, &c.; and purchase of live-stock.

SELECTIONS UNDER SETTLEMENT CONDITIONS.—As stated earlier, the Land Act. 1948, consolidated all enactments relating to lands of the Crown and abolished the distinctions between ordinary Crown land (that is, land subject to the Land Act, 1924), settlement land, Education reserve endowments, and small farms land; all those lands are now simply Crown land subject to and administered under the Land Act, 1948. The numerous tenures under which Crown land could be held (approximately forty different tenures) are replaced by four principal ones—sale for cash, sale on deferred payments, renewable lease, and pastoral lease or licence.

The following information is based on selections under the new Act, and the areas include all lands sold for cash or on deferred payments and selected on permanent lease under the following tenures: renewable lease, pastoral lease or licence, communal grazing lease, and special lease under sections 67 or 166 of the Land Act, 1948. The corresponding table for tenures under the previous Act appears on page 860 of the 1947-49 Year-Book.

Year Ended 31st March,Sold for Cash.Deferred-payment Licence.Renewable Lease.Pastoral Lease or Licence.Special Leases Under Sections 67 and 166, Land Act.Communal Grazing Leases.Local-body and Other Endowments.Total.
Number
19501927527111 16556
Area (acres)
19506,5746,825122,2682,1251 1,176138,969

CROWN LAND HELD UNDER LEASE OR LICENCE.—Since the Land Act, 1948, came into operation on the 1st April, 1949, any now leases issued have been under that Act. The following table shows the leases current as at 31st March, 1950. Part (a) gives details of those leases which have been issued under the Land Act, 1948, while Part (b) shows the leases issued under Acts prior to the Land Act, 1948, and which were still current at the 31st March, 1950. The numbers of leases in the second Part will gradually diminish as the leases concerned expire and lessees on renewal are given a new lease under the Land Act, 1948. Part (c) gives details of leases over areas which became Crown land with the passing of the Education Lands Act, 1949. Since then several of the lessees have elected to convert to leases under the Land Act, 1948, or expressed their intention of doing so. This Part shows the areas which have not yet been converted to leases under the Land Act, but are still subject to their original leases.

Number.Area.Annual Rent.Annual Instalments.
Part (a)Tenures Under the Land Act, 1948
Crown I and—    
Renewable leases— Acres.££
  Farm218116,33622,00283
  Urban3533111 
  Industrial57159 
Pastoral occupation licences12,12519 
Deferred-payment licences—    
  Farm8017,493 4,006
  Urban6333 800
Special leases, section 67 (2), Land Act—    
  Non-renewable, Farm    
  Non-renewable, Urban11210 
Licences for removal of minerals22   
Miscellaneous licences2,221216,8086,881 
    Totals, Crown land2,646352,83629,3824,889
Endowment land, &c.—    
Leases under section 47, Land Act543695 
Leases under section 149, Land Act237617 
Sundry tenures936477 
    Totals, tenures under Land Act, 19482,662354,01229,5714,889
Number.Area.Annual Rent.Annual Instalment.
Part (b)Tenures Under Acts Prior to the Land Act, 1948
Crown land— Acres.££
  Renewable leases7,9782,304,725262,4583,407
  Leases under section 5, Discharged Soldiers Settlement Amendment Act, 1921–2215829,25710,202362
  Special tenure leases1,566399,534114,7391,100
  Leases in perpetuity6,7851,384,730157,25629
  Perpetual leases1295,679696 
  Mining district land occupation leases61813,8481,586 
  Pastoral regulation licences in mining district32765,3211,420 
  Small grazing-run leases7002,324,59875,501100
  Pastoral-run licences5597,710,73470,79111
  Education endowments, Public Bodies Leases Act4,072705,022105,55326
  Occupation-with-right-of-purchase licences455128,37710,39518
  Deferred-payment licences2,029380,752 63,472
  Miscellaneous licences4,537786,23732,206 
  Small-farm leases873,751702 
  Hanmer Crown leases150327735 
  Agreements—sale and purchase Waikato Land Settlement Society272,353 3,074
  Gum washing leases71334173 
  Cheviot grazing farm leases1721,8865,210 
  Sundry leases725,6461,52647
    Totals, Crown land30,33716,273,111851,14971,646
Endowment land—    
  Westport Harbour Board endowment60015,1321,683 
  Otago University endowment27133,5734,733 
  Lower Clutha River Trust endowment1641,3731,337 
  Sundry other endowments242129,4425,056 
    Totals, tenures under acts prior to Land Act, 194831,22216,592,631863,95871,646
Part (c)Leases Taken Over Under the Education Lands Act, 1949, or Still Current
Farm leases258139,26316,761 
Urban leases134883,822 
Commercial leases1102512,873 
Residence-site licences929 
    Totals, leases taken over under Education Lands Act, 1949, or still current511139,37833,465 
Totals, all tenures34,39517,086,021926,99476,535

LEASES FREEHOLDED OR CONVERTED TO OTHER TENURES.—With the coming into operation of the Land Act, 1948, several lessees and licensees availed themselves of the opportunity to convert to a more satisfactory tenure with a right of freehold, a right which had not previously been available under some of the existing tenures. Details are given below of the conversions which were effected during the year 1949-50 as distinct from the applications lodged.

Conversions of Existing Leases to Tenures Under Sections 126 and 127 of Land Act, 1948.Number.Area.
Conversion to—  
Renewable leases— Acres.
Farm lands7950
Urban lands35
Deferred-payment licences—  
Farm lands5782
Urban lands31
Totals, conversions181,738

In addition to the conversions already mentioned, 595 Crown lessees with holdings totalling 50,860 acres elected to acquire the freehold of their properties either for cash or on deferred payments during the year 1949-50, details being as follows.

Lenses and Licences Freeholded.Number.Area.Purchase Price.
For cash— Acres.£
  Crown lands404317,307215,820
  Endowment lands18273,601
On deferred payments: Crown lands17313,52672,170
    Totals, freeholdings59550,860291,591

PURCHASE OF LAND FOR SETTLEMENT.—The Land Act, 1948, authorizes the Land Settlement Hoard to purchase private land or the interest of any lessee or licensee in any Crown land or Maori land for the purposes of settlement as farming, urban, commercial and industrial, or pastoral land. The Servicemen's Settlement and Land Sales Act, 1943, also authorizes the purchase of privately-owned lands, and, in addition, gives power to acquire farm land compulsorily for the settlement of ex-servicemen.

ASSISTING PURCHASE OF PRIVATE LAND.—Where the Land Settlement Board is satisfied that the area of Crown land held by any lessee or licensee is too small to be successfully occupied as a single unit it may authorize the making of an advance to enable him to purchase the interest of a lessee or licensee in any other Crown land which can be conveniently farmed with the land already held.

LAND FOR DISCHARGED SERVICEMEN.—Authority is contained in the Land Act, 1948, for the granting of a lease or licence over Crown land to a discharged serviceman without competition. The Act also provides that where there are simultaneous applications for Crown land and, in the opinion of the Land Settlement Board, there are two or more applicants who are equally suitable to be allotted the land, an applicant who is a serviceman or a discharged serviceman or the wife or widow of a serviceman or discharged serviceman shall have preference over all other classes of applicants.

Land is acquired by the Crown for the purposes of settling ex-servicemen under the following methods:—

  1. By the purchase of privately-owned properties:

  2. By the setting apart for the purposes of the Act of Crown lands subject to the Land Act. 1948:

  3. By the resumption by the Crown of land already held under Crown lease or licence:

  4. By the compulsory acquisition of farms in terms of section 51 of the Servicemen's Settlement and Land Sales Act, 1943, or by the compulsory acquisition of farm land in terms of Part II of the same Act. In the latter case the owner, if fanning the land himself for the support of himself and his dependants, has the right to retain any part of the land constituting an economic unit and containing the homestead (if any).

The following table contains particulars of land acquired for development and for the settlement of ex-servicemen under methods (a) and (d) during the year ended 31st March, 1950, and from the commencement of the scheme to 31st March, 1950; also shown are those areas made available for settlement and the balance on hand at the latter date. The figures do not include particulars relating to ox-servicemen who have been assisted by way of rehabilitation loans to purchase established farms on their own account. Further information concerning the settlement of ox-servicemen on the land will be found in Section 45, “Rehabilitation.”

Year Ended 31st March, 1949.Year Ended 31st March, 1950.Total to 31st March, 1950.
Estimated Number of Units.Area.Estimated Number of Units.Area.Estimated Number of Units.Area.

*Comprising some properties or portions thereof used for the following purposes: (a) For settlement of Maori ex-servicemen by the Maori Affairs Department; (b) for experimental purposes by the Department of Agriculture: (c) areas unsuitable for farming used for afforestation purposes by the New Zealand Forest Service; (d) for adjustment of boundaries with adjoining owners; and (e) areas requiring long-term development.

Purchased by voluntary negotiation296208,454224134,6891,440797,679
Acquired compulsorily under Part II, Servicemen's Settlement and Land Sales Act, 194312732,904427,452380115,734
Acquired compulsorily under section 51, Servicemen's Settlement and Land Sales Act, 1943388,3643510,712440133,156
    Totals461249,722301152,8532,2601,046,569
Less areas utilized*4758,968
Plus pre-war civilian settlement areas set aside for early settlement by ex-servicemen34487,953
Total area available for ex-servicemen settlement2,5571,075,554
Allotments to ex-servicemen up to 31st March, 1950—On fixed charges1,389504,956
On wages with promise of permanent allotment on completion of development290159,387
Balance remaining for allotment to ex-servicemen on completion of development878411,211

Purchase-money in respect of the 134,689 acres acquired by voluntary negotiation for the year ended 31st March, 1950, was £1,322,180, compared with the sum of £1,446,127 for 208,454 acres in the previous year, the total to date being £6,778,441 paid for 797,679 acres. The amount of compensation paid for land acquired under section 51 of the Servicemen's Settlement and Land Sales Act, 1943, during the years ended 31st March. 1949, and 1950, and the total up to the 31st March, 1950, was £142,906, £116,690, and £1,753,162 respectively. The areas concerned for the three periods quoted were 8,364, 10,712, and 133,156 acres.

Rent under the small farms renewable lease is based on the unimproved value of the land at the date of the lease or renewal, and in the case of discharged servicemen is calculated at the rate of 2 per cent. of such unimproved value for the first year and 3 per cent. for the balance of the first term.

The amount of the value of the improvements on the land at the date of the lease is deemed to have been advanced to the lessee and is secured by mortgage of the lease, the mortgage being secured to the State Advances Corporation, which extends interest concessions and gives the same terms as are given in respect of mortgages of freehold properties. The State Advances Corporation also has power to make advances on its usual terms for stock, chattels, or further improvements.

17 C—MAORI LANDS

DEFINITION AND KINDS OF MAORI LAND.—Maori land is of two kinds—namely, customary land and Maori freehold land. Customary land is land which has never been the subject of a Crown grant and is held by Maoris under the customs and usages of the Maori people. It is land in respect of which the ancient customary Maori title as recognized by the appropriate provisions of the Maori Land Act, 1931, has not yet been extinguished. Such land, since it has not been Crown-granted, remains vested in the Crown, subject, however, to the customary title of the Maoris, and to their right to have the customary title transformed into a freehold title by the Maori Land Court. There is little of this class of land now left in New Zealand.

Customary land has always been restricted from alienation except in favour of the Crown. By the Treaty of Waitangi the exclusive right to purchase such land was reserved to the Crown, and in all statutes since passed the alienation of customary land to private individuals has been prohibited, and this prohibition is now extended to the Crown. Maori freehold land is the land held by Maoris under an ordinary freehold title, though subject to certain restrictions on alienation and other special incidents which are unknown to the ordinary law.

Whether land is Maori or European land depends upon the beneficial ownership of it, and not merely on the legal ownership. If land is held by a European in trust for a Maori, it is Maori land; if it is held in trust by a Maori for a European, it is European land. There are, however, four exceptions to this:—

  1. When land has once become European land, it never again becomes Maori land unless by special enactment.

  2. Land purchased by a Maori from the Crown for a pecuniary consideration is not Maori land. This does not include an exchange of land, with or without a payment of money by way of equality of exchange.

  3. Land held by a Maori in severalty may be declared to he European land by the Maori Appellate Court.

  4. Under certain circumstances (see p. 309 of 1942 Year-Book) the Maori owner may have been declared a European.

Even though one of many Maori owners may sell, the land remains Maori land until all have disposed of their interests, or until the purchaser has had his interests partitioned off. The term “Maori” includes a half-caste, or a person intermediate in blood between a Maori and a half-caste.

The Maori Land Act, 1931, and the Maori Purposes Act, 1931, are consolidations, with amendments, of previously existing legislation.

BOARD OF MAORI AFFAIRS.—The Board of Maori Affairs constituted under the Board of Maori Affairs Act, 1934–35, consists of the Minister of Maori Affairs, the Under-Secretary of the Department of Maori Affairs, the Director-General of Lands, the Valuer-General, the Financial Adviser to the Government, the Director-General of Agriculture, the member (if any), of the Executive Council representing the Maori Race, and such other members (not exceeding three) as the Governor-General may appoint.

The functions of the Board include, inter alia, the following:—

  1. The control of the development and settlement of Maori land or land owned or occupied by Maoris, undertaken pursuant to Part I of the Maori Land Amendment Act, 1936.

  2. The control of expenditure on farming operations undertaken by Maori Land Boards and the Maori Trustee.

  3. The control of investments by—(a) Maori Land Boards; (b) the Maori Trustee: and (c) the East Coast Commissioner.

  4. The control of negotiations for the acquisition of Maori lands by the Crown.

  5. The control of expenditure on housing operations under the Maori Housing Act, 1935, and its amendment of 1938.

MAORI LAND COURT.—The Maori Land Court consists of a Chief Judge and such other Judges as the Governor-General may think fit to appoint. All powers of the Court may be exercised by a single Judge, but there are certain important powers vested exclusively in the Chief Judge. Commissioners are appointed who exercise such jurisdiction of a Judge as the Governor-General authorizes. The chief matters within the jurisdiction of the Court are:—

  1. The investigation of title to customary land, and transforming it into Maori freehold land.

  2. The exclusive power of partitioning land among the owners.

  3. The sanctioning of exchanges for other Maori land and European land.

  4. Granting probates of wills and succession orders to Maoris.

  5. Making orders for the adoption of children.

  6. Appointing trustees for Maoris who are minors or under other disability.

  7. The incorporation of the owners of Maori land.

  8. The determination of various claims as between Maoris.

  9. To grant confirmation of alienation of Maori land.

The Maori Appellate Court consists of any two or more Judges of the Maori Land Court, provided that two Judges at least shall concur in every decision of the Court. With certain exceptions the Appellate Court determines appeals, whether on law or on fact, from all final orders of the Maori Land Court.

MAORI LAND BOARDS.—There are seven Maori Land Boards, each consisting of two members—viz., the Judge (or, if there be no Judge of the district, a Commissioner of the Court appointed by the Minister of Maori Affairs) and the Registrar of the Maori Land Court district, the Judge acting as President. The chief functions of a Maori Land Board are:—

  1. To administer certain large areas of Maori land vested in the Board in trust for the Maori owners, the Board having extensive powers of sale, lease, and management.

  2. To act as statutory agent of the Maori owners in respect of certain areas of Maori land set apart for Maori settlement.

  3. To control the administration and disposition of Maori land by resolution of the assembled owners.

  4. To assist Maoris in farming their lands.

In the administration of some 660,000 acres of vested lands, the collection and distribution of rents, royalties, and purchase-moneys from these lands, and from freehold areas which have been alienated, the operations of the seven Maori Land Boards are being fully sustained. Besides assisting Maoris to farm their own lands and in certain circumstances acting as agent for Maoris, the Boards are empowered to engage in any industry in the interests of Maoris, to act as receivers for the purpose of enforcing charges imposed by the Maori Land Court, and to deal with various matters affecting land by meetings of assembled owners.

The financial operations of the Maori Land Boards are shown in conjunction with those of the Maori Trustee and will be found on page 298.

POWERS OF ALIENATION.—The ordinary provisions as to alienation of Maori land do not affect the power to dispose of land by will, but a Maori cannot will to a European except it be a husband or wife or other relative of the person making the will. A Maori cannot dispose of customary land, whether by will or otherwise. No alienation of Maori land by a Maori has any effect until it is confirmed by the Maori Land Court.

The Court, before confirming an alienation, must satisfy itself, inter alia, that it is not contrary to the interests of the Maori alienating; that no Maori is rendered landless by the alienation; that the consideration is adequate; that the purchase-money is paid or secured; and that the alienation is not otherwise prohibited by law.

A lease cannot be for a longer term than fifty years, and a mortgage must have the approval of the Minister of Maori Affairs and confirmation by the Maori Land Court.

With regard to Maori freehold land, the Court during 1948–49 and 1949–50 approved of new leases comprising 18,433 acres to Europeans and 9,347 acres to Maoris in the former year, and 31,057 acres to Europeans and 13,781 acres to Maoris in the later year. It confirmed transfers (apart from sales to the Crown) affecting 3,206 acres of freehold land to Europeans and 1,441 acres to Maoris in 1948–49, the corresponding 1949–50 figures being 2,835 and 961 acres respectively.

PURCHASE OF MAORI LAND FOR CROWN.—Since 5th April, 1935, the duty of undertaking, controlling, and carrying out all negotiations for the acquisition of Maori lands by the Crown, and the performance and completion of all contracts entered into, is imposed upon the Board of Maori Affairs.

Tending any purchase by the Crown the Governor-General may, by Order in Council, prohibit alienation other than to the Crown, Upon the purchase being completed the land is proclaimed Crown land, and is subject to administration under the Land Act, 1948. Where the land is subject to lease when purchased, there may be extended to the tenant the option of purchasing the land from the Crown or having a renewable; lease granted to him.

The area of Maori land still held by Maoris in the North Island is estimated at 3,750,000 acres, and in the whole of New Zealand at 4,000,000 acres. In many cases the Maoris are utilizing their land for pastoral and dairying purposes. Other lands are being farmed for them by Maori Land Boards, by the Maori Trustee, and by the East Coast Commissioner.

MAORI LAND DEVELOPMENT.—In the year 1929 legislation was enacted giving sanction to a scheme for the development and settlement of lands owned or occupied by Maoris. Part I of the Maori Land Amendment Act, 1936, which replaces section 522 of the Maori Land Act, 1931, imposes on the Board of Maori Affairs the duty of undertaking and carrying out this work.

To overcome any delays or difficulties arising from the nature of the titles to the lands proposed to be developed, the Board of Maori Affairs is authorized to bring such land under the scope of a development scheme. Upon notification of the fact, the owners are prevented from interfering with the work of development, and private alienation of any land within the scheme is prohibited. The funds for development are provided by the Minister of Lands through the Land Settlement Account. The Board of Maori Affairs is armed with the most comprehensive powers, which it can exercise directly through the Department of Maori Affairs or delegate to any Maori Land Board or to the Maori Trustee. The Board is also empowered to direct a Maori Land Board or the Maori Trustee to use their funds for development. Power is also taken by arrangement between the Minister of Lands and the Board of Maori Affairs to develop Crown lands that adjoin or are surrounded by a Maori land-development scheme, thus removing a further obstacle in the way of development. Special legislative provision has also been made enabling one or other of the Maori Land Boards or the Maori Trustee to undertake farming of specified blocks on behalf of the beneficial owners.

The total area gazetted under Part 1 of the Maori Land Amendment Act, 1936, to 31st March, 1950, was 657,237 acres, of which 278,808 acres are occupied by 1,781 settlers, and a further 195,561 acres are considered suitable for development purposes. The live-stock carried comprised 38,944 dairy cows, 24,615 other dairy stock, 34,270 run rattle, 192,024 breeding-ewes, and 125,024 dry sheep. In addition, seventeen Maori Trust stations and six Maori Land Board stations comprising 52,301 acres and 42,365 acres respectively are running the following stock: 99,708 sheep, and 12,473 dry cattle. The Board of Maori Affairs also exercises a measure of control over seventeen stations of the East Coast Trust aggregating 121,788 acres and carrying 104,404 sheep and 13,726 cattle.

MAORI TRUSTEE.—The administration of Maori funds and Maori reserves, formerly conducted by the Public Trustee, was by statute transferred to the Maori Trustee as from 1st April, 1921. This was part of a comprehensive scheme which seeks to rehabilitate the Maori by inducing him to farm and manage his own lands. As a further means to this end the Maori Trustee, with the approval of the Board of Maori Affairs, advances money to Maoris on the security of their lands, the expenditure of this money and the management of Maori farming-operations generally being supervised in a helpful and sympathetic manner. The Maori Trustee Act, 1930, consolidated existing legislation.

The Maori Trustee acts as trustee or agent for some 10,000 Maori beneficiaries; administers a large number of Maori reserves containing an aggregate area of 94,000 acres located in cities, towns, and rural districts; advances money to Maoris on the security of their lands; and is actively engaged on pastoral operations on a number of sheep-stations comprising a total area of 52,301 acres. The Maori Trustee accepts money on deposit from the Maori Land Boards and acts as banker for the Special Maori Housing Fund and the Maori Purposes Fund.

The following table contains a summary of the financial position of the Maori Trustee and the District Land Boards as at 31st March, 1948 and 1949. The particulars of receipts and payments are for the twelve months ended in those years.

1948.1949.
 ££
Total receipts1,143,6521,467,342
Total payments1,152,2601,475,284
Cash balances41,41081,919
Investments—  
  On deposit with Maori Trustee427,792549,097
  Government securities838,437878,777
  Mortgages, charges, and advances on overdraft557,718588,461
  Farming properties214,07788,478
Amounts held for Maori beneficiaries1,046,0561,187,131
Financial Reserves412,458442,638

MAORI HOUSING.—The Maori Housing Act, 1935, with its amendments, makes provision for the better housing of the Maori people, and for that purpose provides for the erection of dwellings and for improved housing-conditions for Maoris. The Board of Maori Affairs is empowered under the Act to make advances, out of moneys appropriated by Parliament, for the erection, repair, alteration, or improvement of any dwelling upon the security of an interest in Maori land and an assignment of rents from Maori land, or any other moneys payable to a Maori. Section 18 of the Maori Housing Amendment Act, 1938, established a fund called “the Special Maori Housing Fund” to provide houses for those Maoris unable to furnish the security or to make the payments which the Board of Maori Affairs would ordinarily require. From 1945 these houses have been built by a departmental building organization specially created for this purpose.

In addition to the provision of housing for Maoris under the Maori Housing Act, dwellings are provided in the ordinary course of the Maori land-development schemes referred to on page 297, while housing loans for Maori ex-servicemen are provided under the Rehabilitation Department's appropriation.

The following summary shows the number of houses built and the number of renovations and additions to houses, &c., from the inception of the various schemes to 31st March, 1949, and 31st March, 1950.

Total to 31st March.
1949.1950.
Houses erected2,3242,722
Other building-works (renovations and additions to houses, cowsheds, and other buildings)1,7401,956
    Totals4,0644,678

MAORI WELFARE.—The social and economic advancement and the promotion and maintenance of the health and general well-being of the Maori people is the expressed purpose of the Maori Social and Advancement Act, 1945. Under this Act areas may be declared “Tribal districts” or Tribal Committee areas. In such districts or areas Tribal Executives and Committees have been set up by the Maori people to promote their development. At 31st March, 1949, the numbers of such districts and areas were 63 and 381 respectively. A Controller, Maori Social and Economic Advancement, and 23 male and 13 female Welfare Officers, all of the Maori race, have been appointed to advise and assist these bodies.

The Act provides for subsidies to be paid on moneys raised by the Maori people through their Executives and Committees for various social purposes set out in the Act. In the year 1948–49 a beginning was made with the payment of these subsidies. In that year the amount expended was £3,369, with a further amount of £44,485 in 1949–50. These amounts will increase in subsequent years.

17 D—SURVEYS

INTRODUCTORY.—The surveys of Crown lands, Maori lands, land purchased under the former Settlements Acts and the Land Act, 1948, and lands acquired or taken for public works, are executed under the authority of the Minister of Lands, and are carried out by staff and contract surveyors registered by the Survey Board under the provisions of the Surveyors Act, 1938, which came into operation on 1st July, 1939. This Act provides that in order to undertake surveys, all registered surveyors must hold annual practising certificates, issued by the Secretary of the New Zealand Institute of Surveyors.

The surveys of private lands for the purpose of the Land Transfer Act are carried out by private surveyors similarly registered.

Statutory authority for the surveyor to enter upon any land and to place survey marks thereon is contained in. several Acts, and the wilful destruction of these marks is subject to a severe penalty.

All surface surveys are made in accordance with regulations laid down and are subject to field check (if thought necessary) and to office examination prior to approval and deposit.

The standard of length is the chain of 22 Imperial yards divided into 100 links, and all linear measurements have to be expressed in terms thereof, and areas in acres, roods, and porches, with decimals of a perch. Standard comparison bands are available in each District Office, as well as at the office of the Surveyor-General.

SURVEY SYSTEM.—Control Survey: Until the abolition of the provincial system of government in 1876, the surveys of New Zealand were conducted by nine survey departments, each independent of the other, and working on no common system. At that date an amalgamation into one department was accomplished. Several of the provincial services had conducted their surveys on a trigonometrical basis, but, as the others were building one survey on another by traverse on magnetic or other azimuthal bearings, without any reference to true meridian or the independent check of triangulation, a state of considerable confusion and uncertainty had arisen in the survey records.

In these circumstances it was necessary to devise a system that would rapidly bring the surveys under control and record, so that settles might be placed in secure possession of their land, and the Crown be safe to issue titles on reliable plans and descriptions.

The plan adopted was to divide the country into twenty-eight districts, designated “meridional circuits.” At the initial or main station of each, the astronomical meridian was determined from observations of circumpolar stars, and the latitude from observations of stars north and south of zenith. Lines of bearings on the true astronomical meridian of the initial station were extended throughout its circuit to the plains and valleys where surveys were in progress. Within three years these standard bearings had been so extended as to enable all the surveys to be conducted on the true meridian of their respective circuits; for, following immediately on this operation, a base-line was measured, and a minor triangulation of two- and three-mile sides, starting from one of the stations of the standard bearings was spread, over the country wherever most requited for the check and connection of the settlement surveys. In this way New Zealand was placed very quickly under a system of correct recordable survey, readily adjusted to the requirements of a population rapidly spreading over areas widely apart. The intervening spaces have since been filled in, and the network of triangles is a continuous chain extending over the Islands from, north to south, a distance of 1,100 miles. Simultaneously with the minor triangulation of the country, a topographical survey was carried on, giving the positions of rivers, plains, mountains, forests; best lines for future roads; altitudes of valleys, passes, and mountains; and generally a correct representation of the features of the country, to a scale of 2 in. to the mile.

Sectional: Each meridional circuit was subdivided into squares with sides of 1,000 chains in length, the meridian and perpendicular through the initial station being taken as the starting-point. These squares, called “survey districts,” were further divided into sixteen squares called “blocks,” with sides of 250 chains in length. The sections for sale or lease were superimposed upon these and numbered consecutively in each block. Thus each section has for the purpose of record and title registration a complete identification by means of its number, the number of the block, and the name of the district. Unfortunately, it was not found practicable to incorporate in this system the sections which had been alienated prior to 1876, and the provincial registration districts—parishes, hundreds, Crown grant districts, squares, &c.—were perpetuated.

In general, sections were surveyed before selection or disposal, and in these cases the sections were set off with due regard to the topography, thus making each section as far as possible a farm unit with good access, water-supply, and those other factors which make for the economical working of a farm.

The boundary-lines of the sections were marked at all corners by stout pegs and lockspits, with additional marks where lilies were long and straight. In bush the lines were cut out and similarly marked at corners.

The main object of the survey is to enable the settlement of lands to proceed on a system which will give the settler the possession of a definite piece of land without fear of future rival claims. The Crown, which guarantees titles, is also freed from embarrassing claims for compensation caused by overlapping boundaries.

Office Computation and Records: The triangulation of each circuit was computed as plane, neglecting the curvature of the earth, and the triangulation stations were co-ordinated on the meridian and perpendicular passing through the initial station. Road and sectional surveys were made by traverses with theodolite and chain, rigidly connected to the triangulation stations, and the traverse points were similarly co-ordinated. All surveys were thus subject to complete mathematical check, and could he recorded by direct plot from co-ordinates. Areas generally were mathematically deduced, graphic methods being used only for those portions bounded by irregular lines such as streams. All surveys were recorded on index maps, on scales varying from 4 inches to a mile in rural districts to 1 chain to 1 inch in urban districts. The original survey plans, field notes, and co-ordinate tabulations are all carefully stored in fireproof strong-rooms and are readily available to surveyors requiring the use of the information contained.

In a new country it is of the first importance that all surveys should stand the mathematical test of reduction to the meridian and perpendicular of a governing trigonometrical survey, for, unlike the surveys of old countries, where time-honoured landmarks and a settled population conserve boundaries, the surveys of a now country have no such aid, but, instead, have to create boundaries in the unoccupied wilderness, which at best can only be marked by perishable surface marks. Then, again, the frequent changes of ownership of land in New Zealand facilitated by the Land Transfer system, and the responsibility of the Government in guaranteeing all titles under it, are cogent reasons why the rigid mathematical system of reduction of traverse to the meridian and perpendicular of the stations of a trigonometrical survey should be adopted and maintained.

GEODETIC SURVEY.—Increasing Accuracy: On completion of the original triangulation in the meridional circuits it was found that there were considerable discrepancies in the lines on the boundaries of the circuits, which were common to two or more. These discrepancies were caused principally by two factors—the accumulation of observational errors in the triangulation and the want of a common standard of length in the measurement of the bases. These differences were not sufficiently large to cause any embarrassment while traverses were made with the gunter chain and early pattern theodolite, but on the invention (by a New-Zealander, Mr. A. Fairburn) of the long steel tape in the early “seventies,” and the increased accuracy of later model theodolites, part of the value of the triangulation was impaired. Thus, while the network of permanent marks still controlled the position of boundaries, the field traverses of equal or even greater accuracy than the triangulation sides could no longer be used as definite checks.

First Order Triangulation: Early in this century it was decided to throw over the country a network of large triangles with a high degree of accuracy and from this to recompute the original minor triangulation to conform. In 1904 twelve steel bands were obtained, each with a Board of Trade certificate as to its correct length at a defined temperature and tension. Base-lines were selected, and five in the North Island were measured between 1909 and 1914, when the outbreak of the First World War stopped further progress. In 1922 work was resumed, to be again stopped by the depression in 1931. After five years' cessation this work was resumed in 1936, the first order network observations being completed by the end of 1941, when it was necessary to divert the staff engaged thereon to the urgent task of topographical mapping for the Army. One of the three selected base-lines in the South Island was measured temporarily to provide a more adequate control for the plotting of the topographical map series in the Southland district.

Field operations of the geodetic triangulation were completed in 1948, when all the necessary longitude fixes were made. The measurement of the base-lines in the South Island was completed in the 1947 season.

The observational work has been done to an accuracy well within the limits set by the International Association of Geodesy for work of the highest precision.

Second and Third Order Triangulation: It was originally anticipated that the old minor triangulation could be utilized after readjustment to conform to the new first order, but after attempting to do this it was found that larger corrections than could now be tolerated were being introduced into the old work. In some instances this was undoubtedly due to actual displacement of old stations, but in the majority of cases the fault lay in the old triangulation not being of sufficiently high standard. It was therefore necessary to re-observe the old work, and this has been done in three of the circuits to date.

In this way accurate geographical results over New Zealand will be moulded into one harmonious whole on a co-ordinated system and on a basis which gives the correct relation of one part to another, with no possibility of overlapping where different circuits join.

In most districts, over selected areas, the geodetic survey party has simultaneously broken down the first order triangulation into second order and, where necessary, third order triangulation. Until this latter work has been completely related and adjusted to the main network it cannot be brought into general use for land-survey purposes. At present its use is limited to the control of the topographical map series.

Astronomical Positions: Latitude and azimuth observations have been taken in conjunction with the first order triangulation, about one station in every three being so observed. Longitude observations by wireless telegraphy have been made at stations 100 miles apart, so that in conjunction with latitude and azimuth these stations may be used for Laplace equations to control the entire triangulation.

Precise Levelling: A limited amount of precise levelling has been carried out for the purpose of correlating the level data of irrigation and drainage and other engineering drainage-works. This type of levelling has been carried out in accordance with international standards of accuracy—namely, 002 feet or 024 inches per mile.

These levels are at mean sea-level datum determined from the tidal records of the principal tidal stations or of tide gauges established specially for that purpose. The traverses are referenced at approximately ten-mile intervals by fundamental bench marks and at approximately one-mile intervals by permanent bench marks.

This work must be further extended to meet the requirements of national drainage, irrigation, hydro-electric, and river-control development where related and co-ordinated levels in terms of a fixed datum are essential.

STANDARD SURVEYS.—In order to more adequately correlate and redefine old boundary marks for land-title purposes and to provide a permanent standard of reference for future surveys in cities and boroughs where land values are high, and on highways and on main arterial roads where modern road surfaces have eliminated survey marks, a precise survey is carried out, all intersections being referenced with permanent standard marks, normally concrete blocks protected by an iron cover.

These surveys are of two classes—(1) those in the cities and boroughs, being of standard of accuracy of 2 inches to the mile, the cost of which is borne partly by the local authority concerned and partly by the Department, and (2) those carried out on highways and arterial roads to a lesser standard of accuracy for the purpose of referencing survey marks lost or obliterated by road works and surfaces.

These standard traverses will in the future be correlated with precise levelling traverses, thus providing a standard level datum for engineering works.

AERIAL SURVEY AND TOPOGRAPHICAL MAPPING.—The incidence of war emphasized the need for up to-date topographical maps of New Zealand. The use of the aerial photograph for the production of topographical maps had at the same time revolutionized the methods of production requiring the introduction of an entirely new technique.

Up to 1936 several thousand square miles of topographical mapping had been carried out by plane-table methods in scattered localities throughout the country. With the introduction of the aerial photograph for mapping purposes in 1935, a co-ordinated mapping policy was laid down by the Army authorities. A revised map series on a scale of 1 mile to an inch based on an approved map grid was adopted, and an annual output fixed by a co-ordinating committee set up to control the mapping policy of New Zealand.

Two plotting-machines were acquired by the Department, and at the outbreak of war in 1939 an area of 1,000 square miles had been mapped on a scale of 1 mile to an inch in the Hawke's Bay District, one map sheet being published in March, 1939.

During the war period the Department was made responsible for topographical mapping for military purposes. All the available resources of the Department and the services of a private aerial mapping company were concentrated on the production of maps in this connection. At the 31st March, 1950, the following areas had been mapped:—

1/25000 Series.—A series of maps covering the fortress areas of Auckland, Wellington, Christchurch, and Dunedin, and the training area at Waiouru, were compiled from aerial photographs contoured at 25-foot and 50-foot intervals.

Number of Sheets.Area (Square Miles).
Maps published381,220
In hand281,044
    Totals662,264

1/63360 Series.—In accordance with Army priorities, mapping was concentrated in the first place on coastal belt areas that were of military significance and expanded to cover the more settled areas of New Zealand. Fifty per cent. of the area mapped was based on aerial photographs.

Number of Sheets.Area (Square Miles).
Maps published16347,802
In hand256,836
    Totals18854,638

This series now covers over 50 per cent. of the area of the country and embraces most of the settled areas.

Owing to post-war activities staff previously employed on topographical mapping are now engaged on other survey work mainly connected with land-settlement. However, arrangements are now in hand to build up field staff so that topographical mapping can again be put in hand and the remaining unmapped area completed.

Extensive use is made of the aerial photographs for other than purely mapping purposes. All types of land and engineering development, investigations into geological resources, afforestation, and town and rural planning are now based on data extracted from the aerial photographs. The Department is responsible for the maintenance of a complete library of aerial photographs which are made available for all national purposes. All orders for photography required by any Department of State are co-ordinated and priorities for such photography fixed by a co-ordinating committee. By such co-ordination it is expected that a basic photographic coverage of the whole country will be completed in the next few years.

Since the war additional plotting equipment for the production of maps from aerial photographs has been acquired, and, as staff is trained and becomes available, mapping operations will be extended to meet all national requirements.

TIDAL SURVEY.—The tidal work carried out by the Department at the commencement of the survey operations in New Zealand consisted of determinations of mean high-water mark (H.W.M.) for the purpose of defining the boundary of land abutting on tidal waters.

Later the adoption of mean sea-level as the datum of reference for the heights shown on the maps of trigonometrical and precise levelling surveys led to a more accurate system of tidal observations being initiated; but it was not until 1909 that a complete tidal survey was inaugurated, at the request of the Admiralty, to include the predictions of the times and heights of high and low water of the ports of Auckland and Wellington in the Admiralty Tide-tables.

The tidal observations are made mainly by self-registering tide-gauges, in which a curve is traced which shows the height of the water at any time above an arbitrary datum. This curve is decomposed, by a process devised by Lord Kelvin, and known as “harmonic analysis,” into its harmonic elements. These components are now computed for the ports of Auckland, New Plymouth, Wellington, Lyttelton, Dunedin, Bluff, and Westport, and from them the predicted times and heights of high and low water are obtained by means of the tide-predictor at the Tidal Institute, University of Liverpool, and published in advance in the “New Zealand Nautical Almanac,” the Admiralty Tide-tables, and several of the maritime publications of foreign nations.

The seven ports for which tide-tables are prepared serve as standards of reference on which to base, by means of tidal difference, the times and heights of high and low water of all the other ports in New Zealand.

GEOGRAPHIC BOARD.—The principal functions of the New Zealand Geographic Board, established under the New Zealand Geographic Board Act, 1946, are as follows:—

  • To adopt rules of orthography and nomenclature in respect of place-names in New Zealand.

  • To examine cases of doubtful spelling of place-names, and determine the spelling to be adopted on official maps.

  • To investigate and determine the priority of the discovery of any geographic feature.

  • To collect original Maori place-names for recording on official maps.

  • To determine what alien names appearing on official maps should be replaced by British names.

  • To investigate and determine any proposed alteration of a place-name.

The Board, which replaced the honorary Geographic Board previously in existence, consists of the Surveyor-General, two representatives of the Maori race, a representative of the New Zealand Geographic Society, a representative of the Federated Mountain Clubs of New Zealand, and two other persons.

MISCELLANEOUS.—The Department, in addition to the activities outlined above, carries out many miscellaneous functions, among which are the drawing of maps and diagrams for special publications, the periodic preparation of maps for census and electoral purposes, the copying of maps and plans by photostat process, the preparation of aerial photograph mosaics and enlargements for departmental purposes, the compilation of maps and data for town and regional planning purposes, the control and administration of the subdivision of land in counties required for housing, the preparation of special topographical maps for land-settlement, engineering and scientific development, the preparation of maps for air navigation requirements, the production of all maps for the Armed Services, and many other cognate duties requiring the services of the surveyor or the draughtsman.

PUBLICATIONS.—Reports: An annual report of the departmental activities is published as a parliamentary paper, C.–1A. At regular intervals a publication called “The Records of the Survey” is issued, the latest volume being numbered five. The publication of professional papers is now discontinued, these being incorporated in the Records.

Maps: The Lands and Survey Department employs a draughting staff specially trained for the purpose of producing maps of various types and scales for publication. A uniform system of lithographic draughting, modelled on the ordnance styles, has been instituted throughout all districts. Gradually the older drawings will be replaced by those drawn in accordance with the uniform system.

The following series of maps are available for sale:—

(1) CADASTRAL MAPS.—(a) Survey District Maps (1 Mile to the Inch): These maps illustrate the “survey districts” into which each meridional circuit is subdivided, being generally square with sides of 1,000 chains length and uniform in size. They are drawn for the purpose of illustrating title boundaries and land designations, being of a cadastral nature, showing sections, areas, roads, streams, and trigonometrical stations.

In all, there are 1,005 survey districts in New Zealand, of which 770 have been drawn and published. The maps not yet published mainly comprise districts which are not closely subdivided or where no detailed surveys have been carried out.

Survey district maps are extensively used by State Departments and the public for illustrating land-title matters and land descriptions.

(b) County Maps (1 Mile to the Inch): These show similar data to that comprised in the survey district series. They vary in size in accordance with the extent and size of the county illustrated. In most cases they are only a reproduction of the survey districts included within the boundaries of the county. Special drawings of county maps are undertaken only when survey district maps are not available for reproduction.

(c) City and Town Maps: Maps of the 13 cities and about 160 of the boroughs, town districts, and towns have been published on scales of 4 to 10 chains to the inch. These maps show all subdivisions and areas. Maps of Wellington New Plymouth, Napier, Invercargill, and Timaru, showing streets, public buildings, &c., have also been published.

(2) TERRITORIAL MAPS.—(a) 4-Miles-to-the-Inch Maps: This series of thirty-seven sheets covers the whole of New Zealand, each sheet extending for 2° of longitude and 1° of latitude. The projection is a modified conical projection that permits the whole series to be assembled into a homogeneous whole. These maps are uniform in style, showing topographical details, and are excellent maps for general purposes.

(b) 10-Miles-to-the-Inch Maps: These are wall maps showing the North and South Islands separately, two sheets for each. They show towns, topographical features, &c., and the counties are coloured.

(c) 16-Miles-to-the-Inch Map: Also a wall map extensively used for general illustrative purposes. It is published uncoloured and coloured, showing county boundaries.

(d) 1: 1,000,000 Scale Map: This series is being drawn as part of the International 1: 1,000,000 map (approximately 16 miles to the inch). Three sheets, covering most of the South Island, have been published.

(3) FLYING MAPS.—A series of six maps covering the whole country on a scale of 8 miles to the inch has been published. These maps are specially prepared for aviation purposes.

(4) TOPOGRAPHICAL SERIES.—These maps show contours and all topographical features and are prepared from plane table surveys and aerial photographs. There are two series of these maps. The 1/25000 scale, at present largely covers areas in the vicinity of the main centres—e.g., Auckland, Wellington, Christchurch, and Dunedin. The Waiouru training area is covered by this series also, 38 sheets in all being published.

The 1/63360 series will ultimately cover New Zealand in 350 sheets, and at present 163 of the maps, or approximately 50 per cent. of the total, are now available to the public.

(5) TOPOGRAPHICAL MAP OF NEW ZEALAND (Scale 25 Miles to the Inch).—This map shows general information, and is printed in colour with layer tints of 1,000 ft. intervals to 6,000 ft.

(6) GENERAL AND SPECIAL MAPS.—Maps on various scales besides the foregoing have been published. These comprise a pictorial relief map, and other topographical maps of the whole of New Zealand, or of particular areas.

Map sales agencies are maintained at each of the district offices of the Lands and Survey Department.

Chapter 18. SECTION 18—AGRICULTURAL AND PASTORAL PRODUCTION

18 A—GENERAL

NEW ZEALAND is a pastoral country. Of the 42,800,000 acres occupied, sown pastures cover 18,100,000 acres and pastures of tussock and other native grasses a further 13,700,000 acres. These grasslands support 4,700,000 cattle (of which 1,700,000 are dairy cows in milk) and 32,800,000 sheep. After allowing for 9,000,000 acres taken up by areas in fern, scrub, and second growth, standing bush, and barren and unproductive land, approximately 2,000,000 acres are left, this comprising areas in field crops, private gardens, market gardens, orchards, and plantations of trees. Of the field crops, cash crops such as wheat, oats, barley, peas, linseed, and potatoes account for 370,000 acres and green fodder and root crops for winter and summer supplementary feed for stock 784,000 acres. From this an indication is obtained of the importance of the grazing animal in the economy of this country.

The natural tussock grassland, which occurs mainly on the hilly and mountainous country to the east of the Main Divide of the South Island, is used for extensive pastoral farming where the main product is wool and in some instances store sheep, while on the less steep country, particularly in the North Island where there is surface-sown grassland, both store sheep and cattle are additional products. The third type of grassland, that sown after ploughing, is found on the flat and gently undulating country of both Islands and is used mainly for the production of meat and dairy produce. It is in the latter area that considerable progress has been made over the past thirty years. Here farmers have exploited the use of certified strains of grasses and clovers and phosphatic fertilizers and lime.

With the development of the country's water resources for hydro-electricity most farming districts have been reticulated with electricity, which is being put to a variety of uses on the farm, but by far the most important is that of providing power for milking machinery. For instance, in the dairying districts of the North Island there are approximately 60,000 electric motors, which is 70 per cent. of the number used on farms in New Zealand.

The North Island.—Because of the temperate climate, which makes possible the grazing of stock outside all the year round, many parts of the North Island have proved very suitable for dairying. It is carried out on the flat and undulating land of Northland, the Waikato, Bay of Plenty, Taranaki, Manawatu, and Horowhenua districts, in which nearly 75 per cent. of the total dairy cows in the country are grazed. Pastures of high feeding value form the basis of the industry. The main winter supplementary feed is hay and silage made from the surplus spring and early summer growth of the pastures. The area saved for this purpose in these districts comprises nearly 70 per cent. of the total area saved in New Zealand. In most of the dairying areas fat-lamb raising is associated with dairying, particularly in the Waikato and the Bay of Plenty.

Various forms of sheep-farming are carried on throughout the Island, but it is most concentrated on the eastern section from the Wairarapa, through Hawke's Bay, to the hill country north of Gisborne. Approximately half of the sheep in the North Island are in this section. Extensive sheep farming is the main feature, the receipts from the sale of store sheep and store cattle contributing a considerable portion of the farm revenue.

Where climatic and soil conditions are favourable, orchard areas, market gardens, and other specialized types of farming are found. The Pukekohe district, 30 miles south of Auckland, provides that city with a considerable portion of its vegetable requirements as well as being the main onion-growing area of the Island. Wellington draws most of its vegetable supplies from the Otaki and Levin districts, while Ohakune, in the centre of the Island, with climate and soils suitable for the production of cabbages and broccoli, supplies both cities with these vegetables.

In the warm areas of the Island with suitable soils citrus fruits are grown, the principal areas being Kerikeri, in Northland; Tauranga, in the Bay of Plenty; and Gisborne. The main orchard area is located at Hastings, where there are approximately 3,000 acres of pip and stone fruits.

It is in the North Island that the principal areas of undeveloped land remain, these being situated principally on the central plateau. The State is active in developing some of this land for farming.

The South Island.—Sheep-farming is carried on in practically all parts of the Island. On the tussock grasslands, particularly on the higher parts, extensive sheep-farming is practised. Merino and half-bred flocks predominate, with emphasis on the production of fine wool. Because of the comparatively severe climate—hot, dry summers and cold winters with occasional heavy snowstorms—there is a considerable risk of heavy sheep losses. On the easier hill country, in addition to returns from wool, a considerable portion of the revenue comes from the sale of store sheep, which are purchased by the farmers on the plains and undulating country for fattening and for flock-replacement purposes.

On the plains and downlands of Canterbury and in parts of Marlborough, Otago, and Southland, where the climate and soils are suitable, arable mixed farming is a feature. Approximately 95 per cent. of New Zealand's wheat acreage, 90 per cent. of the area in oats, and 88 per cent. of the barley acreage are in these districts. Associated with cereal production is fat-lamb raising, for sheep and lambs are fattened on the majority of these farms. On account of the dry summers and relatively severe winters, considerable areas (approximately 75 per cent. of the New Zealand acreage) of rape, kale, turnips, and swedes are grown for summer and winter supplementary feed.

Dairying is very localized and is concentrated near the cities to cater for whole-milk requirements. Districts where herds are run for dairy-factory supply are the plains areas of Southland, parts of Nelson and Westland, and Banks Peninsula, in Canterbury.

Market gardening is carried on near the cities, and on the rich soils near Christ-church some 1,700 acres are devoted to this purpose; also to the immediate south of Oamaru and on the Taieri Plains just south of Dunedin there are other areas aggregating 1,000 acres.

With its warm climate and more frost-free areas, the Nelson and Motueka districts are the most important orchard districts in the country, as well as being the centre of New Zealand's tobacco-growing industry. Around the Alexandra and Roxburgh districts in Central Otago, with its almost continental climate, is situated New Zealand's major stone-fruit-growing area.

DEPARTMENT OF AGRICULTURE.—Under the control of the Minister of Agriculture, the Department of Agriculture provides a service the main object of which is the advancement of the interests of primary production. Under a Director-General of Agriculture there are Directors of Divisions of Live-stock, Animal Research, Dairy, Extension, and Horticulture.

While the service is primarily educative, it also carries out important inspection work. Under the Live-stock Division all meat killed at meat-export slaughterhouses and abattoirs is inspected by qualified officers, and periodical inspections are carried out at registered slaughterhouses. The registration of town-milk-supply premises is a function of the Division, and the necessary inspection and supervision are carried out by its officers. A comprehensive service, diagnostic and remedial, is provided in regard to the health of all classes of live-stock. Cattle are examined for tuberculosis and other bovine troubles, and the Department's officers have power to condemn diseased stock. All stock exported and imported is examined by the veterinarians of the Department. Special instruction and advice are given in poultry-keeping, swine husbandry, and wool growing and handling, while other activities include the control of rabbits and noxious weed destruction.

The Animal Research Division, which was formed in 1939, works in co-operation with the Live-stock, Dairy, and Extension Divisions and is also in active collaboration with other institutions engaged in animal research, notably the Department of Scientific and Industrial Research and Massey and Canterbury Agricultural Colleges. The Division has well-equipped laboratories at Wallaceville and at its research station at Ruakura, an important function of the former being the provision of a diagnostic service to the officers of the Live-stock Division, while the latter is concerned mainly with animal nutrition and breeding.

Instruction in the manufacture of butter, cheese, &c., is given by the Dairy Division. Dairy-produce is inspected and graded before shipment, a close supervision being also exercised over the moisture content of butter and cheese, as well as over the weights of such produce; dairy-farm premises are inspected; herd-testing is promoted, and a system of semi-official testing of pure-bred dairy cows is in operation. Milk samples are tested for dairy companies and farmers. The Division is also responsible for the administration of market milk treatment.

The Extension Division is concerned with research and advisory work in soil management, crop and pasture production, and farm management. A field staff of instructors in agriculture acts as a link between the research stations and farmers, and also carries out co-operative field trials and demonstrations on farmers' properties. The Division has special sections devoted to seed certification and agronomy, field experimental work, agrostology, farm management and economics, fertilizers and lime, rural sociology, home economics, farm engineering and machinery, and farm forestry. The Division controls the following stations: Seed-testing Station, Palmerston North; Rukuhia Soil Research Station, Hamilton; Experimental Area, Marton; Phormium plantations, Moutoa; Flock House Farm of Instruction, Bulls; Winchmore Irrigation Station, Ashburton; and Invermay Agricultural Research Station, Taieri.

The Horticulture Division is charged with orchard instructional work, instruction to beekeepers and tobacco-growers, and the inspection of fruit and trees imported and offered for sale. It also inspects orchards and apiaries, inspects fruit for export, and grades export honey. The Te Kauwhata Horticultural Station, in the lower Waikato district, is mainly devoted to vine growing and wine making, and the Levin Station in the Wellington district to research, mainly relating to small-fruit production. There are also several other smaller experimental and demonstration areas.

The agricultural instructional work covers a comprehensive field, farmers being assisted by visits or by letters of advice. Numbers of farmers also co-operate with the Department in conducting experiments on their farms. A monthly journal, the New Zealand Journal of Agriculture, is published at a low rate of subscription, and bulletins are frequently issued. Any farmer may obtain advice regarding his soil, have seed examined for germination capacity and purity, milk tested for butterfat content or for the presence of disease, plants identified, and diseases of either animals or plants described and remedies suggested, all these services being rendered free of charge. Among other responsibilities of the Department is the registration of live-stock brands, slaughterhouses, dairies, dairy factories, fertilizers, orchards, nurseries, market gardens, apiaries, &c.

SUBSIDIES, GRANTS, ETC.—For many years a considerable portion of the vote of the Department of Agriculture was spent in advances, grants, and subsidies to the farming industry. In addition, there was similar assistance from other sources, such as the subsidy to the wheat industry which was formerly paid from the vote of the Department of Industries and Commerce, and assistance to the New Zealand School of Agriculture from the vote of the Education Department.

These subsidies were continued during the war, and the following list shows the most important of those paid in the five financial years ended 31st March, 1950.

1945–46.1946–47.1947–48.1948–49.1949–50.

* Paid from vote “Stabilization.”

 £££££
Carriage of lime228,361255,908*196,037*210,773*231,883*
Carriage of fertilizers192,043383,300*334,786*137,204*152,956*
Carriage of farm produce83,64781,296*52,126*  
Expenditure, including compensation under Stock Act14,58620,82219,74321,32921,975
Expenditure, including compensation under Meat Act23,49819,57719,08917,74418,054
Grant to New Zealand School of Agriculture51,80066,75078,00090,77497,466
Subsidies to Rabbit Boards54,61568,02991,713136,303175,673
Grants to Rabbit Boards6,8837,8679,59321,690231,940
Eradication of noxious weeds25,36527,02325,60127,87529,731
Cow-testing organizations14,47415,00020,00020,00020,000
Destruction of wild pigs2,5901,9541,7751,9181,791
Destruction of kea536982627463431
Assistance to pig industry8,7278,8439,92110,70713,187
Veterinary Services Council  31,07230,73531,593

With the outbreak of war the need for subsidies was intensified. First, it was important to prevent the adverse effect which rising costs would have had on production and to give price incentives in certain cases. Secondly, it was desirable to maintain the prices of essential goods within the reach of all consumers and to ensure an equitable system of distribution.

On 15th December, 1942, a comprehensive stabilization policy was evolved for the whole economy. Many of the subsidies previously paid came under the supervision of the Economic Stabilization Commission, which recommended further subsidies from time to time. Subsidies have, however, been restricted to a minimum and are constantly under review. Before a subsidy is approved a close examination is made of the firm's ability to bear further cost increases and of its efficiency in production. The Stabilization Commission was replaced in 1950 by the Marketing Advisory Council as far as various aspects of primary production were concerned, the supervision of consumer subsidies (which were considerably reduced in number and cost in that year) being transferred to the Director of Stabilization.

For convenience, these new subsidies were paid during the war years from the War Expenses Account. Since 1946–47, when departmental estimates were reintroduced, most of the subsidies have been paid from vote “Stabilization,” although they are still administered by the Agriculture, Marketing, or other Departments concerned.

The general subsidies paid to keep down consumer prices were of only indirect benefit to the farmers, but those paid on farm products were naturally of interest to them. In some of these cases subsidies were paid to the producer or merchant to cover higher costs where it would have been undesirable to pass on the costs in price. Those still being paid include (apart from the subsidy on wheat and flour introduced in 1936) payments to cover the increased cost of producing butter and milk for the local market, a premium for eggs passing through egg-floors and (except for a short interval recently) a subsidy on the cost of wool to local mills. As, however, these are more in the nature of consumer subsidies they have been omitted from the following table of payments in the five financial years 1945–46 to 1949–50 of certain direct farm subsidies which were begun during the war.

1945–46.1946–47.1947–48.1948–49.1949–50.
Fertilizers—£££££
  Superphosphate (including sacks)2,205,4342,626,6041,228,088422 
  Basic slag 48,04464,578  
  Heskett basic slag12,79672,33846,54145 
  Imported phosphatic fertilizer    200,107
  Tobacco fertilizers2,0951,102   
Stock and poultry foods—     
  Maize5,43419,34118,97918,03121,418
  Pig crops100,008113,163130,348  
Cornsacks153,19863,69731,355  
Jute woolpacks17,5318,42416,951  
Milking-machine parts4,5829,13549  
Fruit industry169,982382,96826,205  
Fruit-cases8,44626,50322,357507 
Cow-covers21,09728,02519,298636 
Sheep-dip25,44534,79619,741  
Potatoes and onions35,593  178,42925,445

Payment of these subsidies in the early war years was made with the general agreement of the farmers. Since the agreement between the Farmers' Federation and the Minister of Marketing on 18th June, 1943, subsidies on the proportions of farm-cost commodities used by the dairy and meat industries have been recoverable from the appropriate stabilization accounts, which are built up by increases of export prices over costs. Under this agreement, recoveries of farm subsidies from stabilization accounts have compared as follows with the total of direct farm subsidies (excluding the subsidies on wheat, potatoes, and onions). Particulars for the last six years are shown in the following table:—

1944–45.1945–46.1946–47.1947–48.1948–49.1949–50.
 £(000)£(000)£(000)£(000)£(000)£(000)
Farm subsidies (March years)2,9023,2374,1092,399534727
Recoveries (from farm stabilization accounts) (July years)2,4762,5392,712730184424

GROSS FARMING INCOME.—Farming occupies such an important position in the economic structure of New Zealand that statistical information relating to farm-production is vested with special interest. The agricultural and pastoral statistics, which form the subject-matter of the next two subsections, deal mainly with the quantitative aspects of farm production; while, from these statistics and from cognate statistics for other industries, estimates are made of the value of commodity production as a whole—including farm production (see Section 47). Various other classes of official statistics—for example, statistics of national income and prices index numbers—throw some light on the economic position of the farming industry.

Statistics of quantitative farm production and prices received by farmers constitute the basic data used in the computation of estimates of aggregate receipts from sales of farm-produce. The figures do not purport to show the aggregate net income from farming after all expenses of farm operations have been met. They are intended to afford an indication of the income available to farmers as a whole to meet current expenses of farm-operation, living costs, interest payments, and all other costs. The estimates have recently been revised to take into account the real income or loss represented by changes in the numbers of live-stock on farms as between the various years.

Except in the cases indicated in the next paragraph, no attempt has been made to exclude from the scope of the compilations that portion of marketable farm-produce which may be consumed on the farm. Similarly, that portion of farm-produce which is sold to other farmers as material for further farm-production is in general included. For example, the value of production of grass-seeds is included under the heading “Agricultural Produce,” although—except for exports—almost the whole of this crop is used for the sowing or renewal of pasture lands. An exception, however, occurs in the case of stud stock sold for breeding purposes, no data being available on which to base an estimate of the aggregate annual value of such sales. With this exception, the totals shown for all farm-produce thus represent the total income (including receipts from sales to other farmers), plus certain allowances for farm-produce used on the farm. On the other hand, products of kitchen-gardens and of other activities more intimately associated with the home than with the farm do not come within the ambit of this inquiry.

Production of green-fodder crops, turnips, and mangolds is not included. The view taken is that production of these crops is a normal and essential part of farm routine to be regarded more in the nature of a farm cost than as production of a saleable commodity. Consequently, the unknown—but, it is believed, very small—proportion sold of the total production of this class of farm-produce is omitted from the totals shown. In the case of production of grasses and clovers, it is arbitrarily assumed that 20 per cent. where cut for hay, and 5 per cent. where cut for ensilage, and in the case of chaff 25 per cent., of the total crop comes within the scope of this inquiry, the remainder being omitted for reasons similar to those advanced in the case of green fodder, &c.

The division into the three groups — (1) Agricultural, (2) Pastoral, and (3) Dairying, Poultry, and Bees—has been made entirely on the basis of the nature of the produce.

The principal items included in the agricultural group are wheat, oats, and other grain crops, grass-seeds, potatoes, onions, tobacco, linen flax, orchard-produce, and produce of market-gardens, nurseries, hop-gardens, &c. The prices at which the various commodities are valued are, in general, the prices received by farmers in the early months of the year, when the crops are harvested.

The estimated cost of sacks, cases, and other containers is excluded, as also are transport charges from farm to market and commission on sales. The fact that the cost of containers is excluded might be regarded as a departure from the general practice adopted in this computation of omitting to take account of costs incurred on the farm. It should be noted, however, that price quotations for some important classes of agricultural produce—e.g., wheat—are in ordinary commercial practice on a “sacks extra” basis, so that the exclusion of the value of containers in the case of other crops has the merit of consistency.

The principal items included in the pastoral group are live-stock and wool-production. Slaughterings of live-stock have been assessed on the basis of values (alive) at freezing-works, deductions being made to cover the cost of transport from farm to works, saleyards, &c., and of commission on sales of live-stock. The value of store stock or young lambs sold by one farmer to another is counted only once—that is, when sold for slaughtering as fat stock.

It should be mentioned that the value of all live-stock production, including pigs, is included in the pastoral group, although pig-production is largely an adjunct of dairying.

Wool-production is valued at the average prices realized at sales or appraisals held during each season, the aggregate arrived at representing the value of wool produced in each season at average sale or appraisal prices ruling during that season. No adjustments are made to cover the unknown increase or decrease in the total ultimate return from the season's production due to higher or lower prices realized for wool carried over and sold in a subsequent season. Deductions have been made to cover the cost of transport of wool to selling centres, and of woolpacks.

The estimates for the pastoral group have now been revised to take into account the value of real income represented by changes in the numbers of live-stock held on farms, which in individual years may represent a marked accretion or reduction in terms of real income.

The largest individual item included in the dairying, &c., group is the pay-out to suppliers by butter, cheese, and dried milk, &c., factories during each of the dairy seasons shown. An estimate of the value of human consumption of raw milk (at farm-gate prices) is also included, together with the value of butter produced on farms for home use or for sale. The available data permit of only a rough estimate of the value of poultry-products, which, with bee-products, are included in this group mainly for purposes of convenience.

The following table shows figures of gross farming income (in millions of £N.Z.) arrived at for each of the twenty-one production years for which the information is available.

Production Year.Agricultural Produce.Pastoral Produce.Produce of Dairying, Poultry, and Bees.All Farm Produce.
 £(m.)£(m.)£(m.)£(m.)
1928–297.335.825.568.6
1929–307.429.424.461.2
1930–316.718.917.943.5
1931–326.514.017.437.9
1932–336.914.616.538.0
1933–347.024.817.849.6
1934–356.022.318.346.6
1935–367.427.723.959.0
1936–377.239.527.974.6
1937–387.334.029.871.1
1938–398.229.930.868.9
1939–409.431.233.874.4
1940–419.639.936.686.1
1941–4210.638.535.184.2
1942–4312.039.033.984.9
1943–4413.438.633.285.2
1944–4514.846.040.0100.8
1945–4614.545.636.496.5
1946–4715.053.544.9113.4
1947–4815.068.452.1135.5
1948–4917.471.158.4146.9

Index numbers have also been compiled showing the movements in volume of farm production. For the compilation of these index numbers, a computation has been made for each of the seasons 1928–29 to 1948–49 showing what the aggregate annual value would have been had 1938–39 prices been constant throughout the period. From the resultant aggregates, index numbers have been compiled which measure the movements in the volume of production; for, since prices were assumed to be constant, volume is the only variable factor in the aggregates. The volume indices of farm production entering into gross farming income have been revised and now cover the same items as the volume of farm production series which is quoted in Section 47 of this Year-Book. The index numbers of volume of agricultural and dairy production remain unaltered, but the coverage of the pastoral production series has been widened to include an allowance for changes in the numbers of live-stock on farms.

In the following table, index numbers of value and volume on the base: 1938–39 (= 100) are given, and these give a clearer idea of the extent of year-to-year changes.

Production Year.Agricultural.Pastoral.Dairying, &c.All Farm Produce.
Value.Volume.Value.Volume.Value.Volume.Value.Volume.
1928–298910712079837210079
1929–3090105988379788983
1930–3182113637958806384
1931–3279105477956835584
1932–3384136498654965596
1933–34851198391581027299
1934–3573104759059996896
1935–369012393937810487101
1936–37881111329791109108104
1937–388910611410197105103104
1938–39100100100100100100100100
1939–4011511910493110107108102
1940–41117126133114119115125116
1941–42129128129110114109122111
1942–43146139130106110102123108
1943–4416314812910210896124105
1944–45180160154110130105146113
1945–4617714215311311892140107
1946–47183152179108146102165110
1947–48183144229114169104197113
1948–49212156238112190113213117

A record level for farm production both in value and volume was reached in 1948–49. The relatively greater increase in value than in volume over recent years reflects the increase in prices, or unit values, that have taken place.

From the aggregate values compiled for the purpose of measuring movements in the value and volume of farm production, the following estimates (shown in the form of percentages of total farm production) of the relative contribution of agricultural, pastoral, and dairying, &c., production to total farm production have been computed.

Production Year.Agricultural.Pastoral.Dairying, Poultry, and Bees.All Farm Produce.
Value.Volume.Value.Volume.Value.Volume.Value.Volume.
1928–29111552453740100100
1931–32171437434643100100
1938–39121143454544100100
1939–40131342414546100100
1940–41111246454343100100
1941–42131346454142100100
1942–43141546444041100100
1943–44161645443940100100
1944–45151646443940100100
1945–46151547483837100100
1946–47131647444040100100
1947–48111451463840100100
1948–49121548434042100100

THE SPREAD IN PRICE LEVELS.—The statistics quoted under the previous headings illustrate the growth in farm production since the 1928–29 season, and the changes in gross farming income. While the fall in gross farming income between 1928–29 and 1932–33, despite a considerably enhanced volume of farm production, suggests in itself a period of difficulty for the fanning community, the divergence between price-levels of farm-products, most of which are sold in overseas markets, and internal price-levels generally is the real crux of the agrarian problem in time of depression. Prices of farm-products are particularly sensitive, since the demand for and the supply of most products of the soil are not easily equated. Changing demand conditions for farm-products do not readily result in compensatory supply changes, nor do changing supply conditions readily bring about compensatory demand changes. The slack is normally taken up through fluctuating prices. On the other hand, the cost of debt charges does not fluctuate so readily, while prices of services and of manufactured goods in normal times are also less sensitive than prices of farm-products.

FARM PRODUCTION: EXPORTS AND NEW ZEALAND CONSUMPTION.—Estimates of the relative importance of exports and of consumption within New Zealand in the disposal of farm-produce have been compiled by utilizing the statistics of gross farming income, in conjunction with statistics of trade in farm-products.

In the paragraphs covering the statistics of gross farming income it is explained that these estimates were framed on the basis of “on the farm” values in order that they might indicate the gross receipts by the farmer, after making provision for transport charges and other expenses incurred in the marketing of produce.

In compiling the statistics of the relative importance of the New Zealand market and of export markets for farm-products, the value of exports has been assessed at the “farm” value of the commodities concerned, and not at the f.o.b. declared value for export. This adjustment has been made in order to ensure that both sets of statistics from which the comparison is made are on the same value basis. It will be realized, then, that the statistics of value given in this statement indicate the gross returns to the farmer from farm-products exported and from consumption of such products within New Zealand. With the revision of the estimates of gross forming income to include changes in the number of live-stock on farms, a necessary but somewhat arbitrary adjustment has been made to the New-Zealand consumption figure for the purposes of this analysis and the following table.

The statistics of the return to the farmer in respect of New Zealand consumption of farm-produce have been obtained by deducting exports from total production. In these compilations exports of milk-products have been converted to a butterfat equivalent, the return to the farmer being computed on the basis of butterfat pay-out; while the slaughterings represented by exports of meat products have been taken as the basis on which to estimate the farmer's receipts from exports of meat. In instances where statistics of stocks are available adjustment has been made for the carry-over from one season to another. It has been assumed that stocks of wool, frozen meat, and butter and cheese carried over are held for export, and that stocks of wheat and oats are subsequently consumed within New Zealand.

Since the estimates of New Zealand consumption are the residual element in the process of compilation, any lack of correspondence between the statistics of production and of trade will affect the accuracy of these estimates. Statistics of production relate to the production-year for each commodity, or group of commodities, coming within the scope of this investigation. In many instances the production-years do not cover identical twelve-monthly periods, so that the aggregate of production of farm-produce includes statistics for a number of yearly periods ending in different months. Exports during any one year do not consist entirely of commodities produced within the same twelve-monthly period to which the export statistics relate. The effect of these various factors is, however, minimized by taking averages for three seasons rather than individual seasons.

The following table, based on the averages of statistics for three production and three export seasons, shows the division of gross farming income into returns from exports of farm-produce and from consumption of such produce within New Zealand.

Three Production Years.Annual Average Gross Farming Income fromPercentages of Gross Farming Income from
Total Production.Exports.New Zealand Consumption.Exports.New Zealand Consumption.
 £(m.)£(m.)£(m.)Per Cent.Per Cent.
Agricultural Produce.
1928–29 to 1930–317.10.76.41090
1933–34 to 1935–366.80.86.01288
1936–37 to 1938–397.60.86.81189
1942–43 to 1944–4513.43.310.12575
1943–44 to 1945–4614.23.610.62674
1944–45 to 1946–4714.83.111.72179
1945–46 to 1947–4814.82.212.61585
1946–47 to 1948–4915.82.213.61486
Pastoral Produce.
1928–29 to 1930–3128.018.69.46634
1933–34 to 1935–3624.919.35.67822
1936–37 to 1938–3934.426.87.67822
1942–43 to 1944–4541.235.26.08515
1943–44 to 1945–4643.536.76.88416
1944–45 to 1946–4748.441.47.08614
1945–46 to 1947–4855.848.96.98812
1946–47 to 1948–4964.357.07.38911
Dairying, Poultry, and Bees
1928–29 to 1930–3122.615.27.46733
1933–34 to 1935–3620.014.75.37327
1936–37 to 1938–3929.520.49.16931
1942–43 to 1944–4535.723.012.76436
1943–44 to 1945–4636.524.212.36634
1944–45 to 1946–4740.427.512.96832
1945–46 to 1947–4844.530.114.46832
1946–47 to 1948–4951.835.616.26931
All Farm Produce
1928–29 to 1930–3157.734.523.26040
1933–34 to 1935–3651.734.816.96733
1936–37 to 1938–3971.548.023.56733
1939–40 to 1941–4281.655.026.66733
1940–41 to 1942–4385.157.028.16733
1941–42 to 1943–4484.856.228.66634
1942–43 to 1944–4590.361.528.86832
1943–44 to 1945–4694.264.529.76832
1944–45 to 1946–47103.672.031.66931
1945–46 to 1947–48115.181.233.97129
1946–47 to 1948–49131.994.837.17228

Of the total gross farming income during the twenty-one production-years 1928–29 to 1948–49, 67 per cent. came from exports of farm-produce, while 33 per cent. was accounted for by consumption of such produce within the country.

MARKETING OF PRIMARY PRODUCE.—Prior to the First World War, internal arrangements for the marketing of primary produce destined for export were the subject of individual negotiation between producers and intermediaries. Government assistance in the marketing of primary products, however, had been given in many ways since organized settlement began, such as by monetary grants, by research and instruction, and by inspection and regulation in the public interest. Organized bulk marketing commenced in 1915 with the establishment of the Imperial Government Supplies Department in Wellington as agent for the New Zealand Government in controlling the export of the various items of primary produce, notably wool, butter, cheese, hides and skins, &c. After the termination of Imperial bulk purchasing by March, 1921, producers of meat and dairy-produce viewed more favourably participation in some form of common marketing organization, though wool-producers were much less favourably disposed, due to the different circumstances pertaining in regard to overseas markets for wool.

In 1922 and 1923 therefore, attempts to gain at least some of the advantages of organization were apparent in the establishment in the former year of the Meat-producers Board under the authority of the Meat-export Control Act, and of the New Zealand Dairy-produce Control Board in 1924 under the Dairy-produce Export Control Act of the later year mentioned. Other such Boards established include the Honey Export Control Board (1924), the Fruit-export Control Board (1924), the Kauri Gum Control Board (1925), the New Zealand Poultry Board (1933), and the Wheat Committee (1936).

The effect of the economic depression of the early “thirties” affected the operations of the Boards so seriously that after an investigation of a Royal Commission, an Executive Commission of Agriculture was created in 1934 by virtue of the Agriculture (Emergency Powers) Act, 1934. The Commission was granted very wide powers, including those to take over the functions of various existing Boards, and to make regulations for the improvement of marketing methods in order to improve the prices at which farm produce was being sold.

In respect of the direct control and marketing of primary produce, the Executive Commission of Agriculture was superseded by the Primary Products Marketing Department in 1936, though it continued to function in an advisory and regulatory fashion, being, among other things, responsible for the zoning of dairy factory supply areas.

The Meat-producers Board arranged for the grading, handling, and storage of meat for shipment and the regulation of shipping, while no valid contract for shipment by exporters could be made without the approval of the Board. This practice continued until in the early stages of the Second World War recourse was again made to bulk purchase between Governments, the Marketing Department taking over the export of meat.

The Dairy Board in a similar manner became responsible for the control of shipping in respect of dairy-produce. As an experiment in 1927 it endeavoured to make use of its London office as the sole agent for the sale of butter and cheese, including the fixation of prices by the London agency in conjunction with distributors. This experiment was abandoned shortly thereafter, but a modified form of marketing organization was adopted in the early depression years by the preparation of a list of licensed wholesalers to whom allocations of dairy-produce were made. Further plans for the more complete control of export marketing by the Board were rendered void with the establishment by the Government of the Primary Products Marketing Department (later becoming the Marketing Department) under the Primary Products Marketing Act, 1936. The Department was empowered to acquire primary products and market these either in New Zealand or overseas, During the ensuing period up to the outbreak of war the operations of the Department were confined to dairy-produce while throughout this period and subsequently, payments to butterfat-producers were based on the guaranteed-price scheme. Concurrently with the control of marketing of dairy-produce for export, the Department assumed the responsibility of marketing such products within New Zealand.

Legislation in 1937 established the Internal Marketing Division of the Primary Products Marketing Department, and the original Department became the Export Division of the Primary Products Marketing Department. The functions of the new Internal Marketing Division were rapidly expanded in various directions and it took over the processing and marketing of New Zealand standard lemons (1939); guaranteed a minimum price for kauri-gum (1937); provided a minimum guarantee for eggs and undertook an advisory service for the trade (1937); and in 1940 became responsible for the administration of regulations setting up egg depots in the four main centres and in Hastings. In 1938 regulations administered by the Division were introduced regulating the sale and disposal of bobby calves. In this year also the Minister of Marketing assumed the powers of the Honey Export Control Board. Honey in blended and packed form was distributed both within the country and to overseas markets. Upon the outbreak of war in 1939 and by agreement with the New Zealand Fruitgrowers' Federation, but actually commencing duty in 1940, the staff of the Fruit-export Control Board was taken over, the Board retiring from active participation, but remaining as an advisory committee. The growers were given a fixed return for their fruit, the Government undertaking to sell the whole crop within New Zealand, and to bear whatever losses were consequent upon such policy.

The existence of the Marketing Department was thus a factor in achieving a smooth change-over to a system of bulk-purchase agreements covering meat, dairy produce, wool, hides, tallow, &c., between the United Kingdom and New Zealand Governments. This procedure was to remain a dominant feature of marketing during the succeeding years. Shipping and storage difficulties associated with wartime conditions also led to the export of meat becoming a function of the Marketing Department.

In the case of wool, the Government utilized the services of organizations already in existence for the bulk sale of this product. General administration and the financial aspects were dealt with, however, by the Marketing Department.

The Meat Pool, Meat Industry Stabilization, and Dairy Industry Stabilization Accounts received the benefit of price increases occurring during the war years (the first mentioned, of increases in meat prices up to December, 1942; the second, there after). The surpluses remaining in the two latter accounts, after payment of subsidies, &c., designed to keep down farm production costs, constituted reserves intended to maintain producer incomes during periods of falling prices and, in the case of the Meat Pool surplus, for the future use of the industry. The Finance Act, 1950, amalgamated the Meat Pool and Meat Industry Stabilization Accounts to form the Meat Industry Reserve Account. In certain other industries, such as honey and lemons, the Marketing Department operates pool accounts within its main Marketing Account.

In 1947 the Dairy Products Marketing Commission Act was passed, the effect of which was to transfer the marketing of dairy-produce from the Marketing Department to the Dairy Products Marketing Commission (which includes Government and producer representation) established by the Act. The Commission was given the task of determining the guaranteed price to be paid out to producers, while the general conditions to be taken into account in its determination were also specified.

The present position may be summarized as follows: the Dairy Products Marketing Commission negotiates with the overseas buyers—(e.g., United Kingdom Ministry of Food)—in respect of contract prices and quantities of export dairy-produce, acquires and provides for the handling of the New Zealand dairy production, determines the guaranteed prices to be paid to local producers for dairy-produce, and regulates the marketing of butter and cheese in New Zealand.

In respect of meat, by arrangement with the Government in early 1948 the Meat-producers Board resumed the regulation of shipping and physical handling of meat and became responsible for the purchase of meat for export and the payment to the freezing companies for such meat. In negotiation of prices, contracts, &c., for the sale of meat and meat products overseas, the representatives of the Board act as advisers in association with the representatives of the New Zealand Government. Meat destined for local consumption is not dealt with by the Meat-producers Board.

The minimum-price system created by the Joint Organization for the disposal of war surplus stocks of wool is continued by the operations of the Wool Disposal Commission, which is prepared to buy at minimum reserve prices wool from current clips offered at public auction but in respect of which prices fail to exceed the reserve fixed. The marketing of wool is carried out by public auction, though a levy on the proceeds of sales is retained and is expended by the Wool Board for the benefit of the industry as a whole. Negotiations are proceeding for a wool marketing plan to succeed the present Joint Organization scheme after the 30th June, 1951. The proposals envisaged follow generally the existing procedure providing for sale by auction, and the system of reserve prices.

The Apple and Pear Marketing Act, 1948, set up the New Zealand Apple and Pear Marketing Board, which consists of five persons, two appointed by the Government, two nominated by the industry, and a Chairman appointed by Government after consultation with representatives of the industry. In this case the Board does not itself declare the guaranteed price for apples and pears, its powers being limited in this respect to making recommendations to the Minister of Marketing, who declares the guaranteed average price. This price may vary by 6d. more or 6d. less per case from the cost of production, which is a separate figure declared by the Minister after consultation with the Board. The variation up or down is determined by various tests set out in the Act. The Apple and Pear Board does not employ its own staff, except for secretarial and investigational duties, the physical functions in assembly, distribution, and marketing being carried out by the Marketing Department as the agent of the Board.

The Milk Act, 1944, set up a Central Milk Council under whose general direction were to be established local milk authorities of various types according to conditions. The Milk Marketing Division, amalgamated into the Marketing Department, acts as the administrative agent of the Council. It also administers the National Milk Scheme under which local supply associations of farmers contract to supply the requirements in given areas at prices fixed from time to time by agreement between the industry representatives and the Government. The scheme controls prices and allowances for processing and distribution at all stages from the farm gate to the consumer.

The Potato Board, with equal representation of growers and merchants, was established by the Potato Growing Industry Act, 1950. Its principal function is to ensure that an adequate supply of main crop potatoes shall be available for consumption. Its powers include the making of contracts between growers and the Board and the appointment of wholesalers authorized to purchase from growers and to sell potatoes in respect of which contracts have been made with the Board. The Board replaced the Potato Advisory Committee of the Marketing Department from November, 1950.

In some industries of smaller volume though of considerable importance, in particular the honey, maize, and lemon industries, executive and financial powers involved in the marketing of the products are exercised through the Marketing Department, operations being carried on in full consultation with Marketing Committees set up under regulations, and on which the industry is represented. Honey for export is controlled by the Minister of Marketing, the latter having assumed the powers conferred on the Honey Export Control Board by virtue of the Agriculture (Emergency Powers) Act, 1934 as modified by subsequent marketing legislation.

Bulk Purchase of Primary Produce by United Kingdom Government.—The deterioration in the European situation during 1938 and 1939 had led to the formulation of plans in the United Kingdom and New Zealand for the supply of foodstuffs and other produce in the event of war. These plans, which were put into effect shortly after the outbreak of war, envisaged the United Kingdom Government becoming the sole purchaser of imported foodstuffs, and the Marketing Department becoming the authority in New Zealand responsible for the bulk purchase and shipment of the various food and other products.

In general, the arrangements for the purchase of produce were to continue for the duration of the war and a subsequent period to be agreed upon, except in the case of wool, where the period was fixed for the duration of the war and one season's clip there after. The bulk purchases of wool terminated with the sale of the 1945–46 season's clip, but early in 1944 long-term contracts were entered into in regard to butter, cheese, and meat, the period covered in the original agreement being the four production seasons 1944–45 to 1947–48. At the beginning of the 1946–47 season the period of the contracts was extended to 31st July, 1950, with arrangements to confer in 1948 on the desirability of a further extension. As a result of conferences held in 1948, new long-term agreements were entered into covering the period to the end of the production year which terminates in 1955. These agreements are referred to later under their respective headings.

The principal products which came within this bulk-purchase plan were wool, dairy-produce, meat, tallow, and woolly sheep-skins. A brief history of the contracts entered into in regard to the three main items—wool, dairy-produce, and meat—and of the principal changes that have taken place since the inception of the scheme is contained in the following paragraphs.

Wool.—In the case of wool, the contract commenced with the 1939–40 season's clip and was for the duration of the war and one season's clip thereafter. It was subsequently agreed that the “duration of the war” related to the “global” war, so that, following the cessation of hostilities in August, 1945, the sale of the 1945–46 season's clip marked the end of the contract obligation of the United Kingdom Government. All wool not required for manufacture in New Zealand was covered by the terms of the contract.

The original purchase-price for greasy wool was fixed at 10.55d. sterling per pound f.o.b. This price permitted of an over-all average payment of 12.25d. per pound, in New Zealand currency, to be made to woolgrowers for wool delivered at appraisal warehouses, after allowing for the payments to wool-brokers and wool-appraisers for their services, for costs to f.o.b., and for Marketing Department expenses. The purchase-price for slipe wool was 13.75d. sterling per pound f.o.b., which gave an over-all average payment of 16.9766d. (N.Z.) per pound f.o.b., after allowing for the services of appraisers, Marketing Department's expenses, &c.

Provision was also made for the scouring of certain quantities of wool in New Zealand, payment to be made on a greasy basis, with an allowance of 1½ d. per pound to cover scouring costs and additional handling charges.

In addition to the foregoing, half-profits on subsequent sales of wool outside the United Kingdom were to accrue to the producers. Distribution of profits (if any) was to be made when the accounts for the final season were closed.

The contract made provision for the purchase-prices to be reviewed in May of each year at the instigation of either Government. The prices quoted above remained in force until May, 1942, when the United Kingdom Government announced an increase of 15 per cent. in the ex-store price of wool for the 1942–43 season, not including the additions for storage and handling charges which enter into the total price paid. This raised the appraisal prices to an ex-store over-all average (New Zealand currency) of 14.0875d. per pound for greasy wool and of 19.523d. per pound for slipe wool. These rates continued for the 1943–44, 1944–45, and 1945–46 seasons.

In addition to the prices just quoted, the United Kingdom Government paid on greasy wool 0.872d. per pound, being brokers' charges 0.625d., transport and other charges to f.o.b. 0.125d., and Marketing Department costs, including appraisal, 0.122d. On slipe wool the additional amount payable was 0.125d. per pound, being marketing costs, including appraisal.

As a result of the dislocation of normal trading conditions caused by the war, huge surplus stocks of wool purchased under contract from Australia, South Africa, and New Zealand had accumulated by the end of the contract period. The total stocks of United-Kingdom-owned wool at 30th June, 1945, were estimated at 3,245,000,000 lb., comprised of—

 Pounds (Millions).
63 per cent. Australian2,060
17 per cent. New Zealand540
20 per cent. South African645
    Total3,245

The post-war exportable surpluses of these countries were estimated to average 1,446,000,000 lb. annually, made up of 910,000,000 lb. from Australia, 310,000,000 lb. from New Zealand, and 220,000,000 lb. from South Africa. This amount is approximately the same as the pre-war exportable surplus and may be said to represent the approximate pre-war world consumption of wool from these countries (exclusive of local consumption) On an estimate that consumption of wool originating in the three countries might increase to a level of 20 per cent. above pre-war, the period required to dispose of existing stocks alongside new clips at the estimated rate of future production was estimated at thirteen years from June. 1945. However, owing to the increased world consumption of wool, the surplus stocks have been disposed of at a much faster rate than was anticipated, being at a rate of approximately 2,000,000 bales each year—i.e., exhaustion of stocks will probably occur within a six-year rather than a thirteen-year period.

The problem of dealing with and disposing of the accumulated surplus in a manner that would not detrimentally affect future prospects of the trade resulted in the formation of a partnership between the Governments of the United Kingdom, Australia, New Zealand, and South Africa. A Joint Organization was formed and incorporated in England as a private registered company, the capital consisting of eight shares, of which four are held by the nominees of the United Kingdom, two by nominees of the Government of Australia, and one each by nominees of the Governments of New Zealand and South Africa. The company has three subsidiaries acting on its behalf, one in each of the three wool-producing countries. The subsidiary in New Zealand is the New Zealand Wool Disposal Commission established under the Wool Disposal Act, 1945. This Act, which came into force on 1st January, 1946, approved the agreement entered into between the four Governments and established the necessary machinery for the carrying-out of the functions of the Joint Organization in New Zealand.

The Directors of the Joint Organization—the principal company—consist of an independent Chairman appointed by the four Governments jointly, four directors appointed by the United Kingdom (four votes), three by Australia (two votes), and two each by New Zealand and South Africa (one vote each). One of the directors appointed in each case by Australia, New Zealand, and South Africa is the chairman of the subsidiary in that country, and he is entitled to a vote at any directors' meeting at which he may be present.

The Joint Organization buys, holds, and sells wool as agents for the four Governments. The new wool clips are not acquired by it by way of bulk contracts—the method adopted by the United Kingdom Government during the war—but these, and existing surplus wool, are auctioned as before the war, subject to a system of minimum or reserve prices, at which the Organization itself will buy if no other buyer bids that price or better. Reserve prices are fixed prior to the opening of each wool season, or “at such other times as may be required,” not by the Joint Organization, hut by representatives of the four Governments. The price-fixing powers of the Joint Organization are limited to the making of “minor” changes in the general price-level.

Stocks of wool taken over by the Joint Organization for disposal in 1945 amounted to 10,407,000 bales, while the stocks remaining at 30th June, 1950 (inclusive of wool bought at reserve prices), were estimated at 484,400 bales. The New Zealand share of this wool in the two years quoted comprised 1,777,000 bales in 1945 and an estimated 103,800 bales in 1950.

An estimated profit of £12,500,000 will accrue to New Zealand as its share from the sale of wool under the Joint Organization scheme. An advance payment of £5,000,000 from profits has been received, paid into the Marketing Account and invested in Government securities, and is to be later expended for the benefit of the wool industry.

The operating expenses of the Joint Organization are borne equally by the wool-growers and the Joint Organization. The share of the wool-growers is paid from a contributory charge on all sales of current clip wool at auction sales or sales to the Joint Organization at reserve prices. The share of the Joint Organization is met by a deduction from the sales of wool held by it. The rate of the contributory charge in New Zealand was 7½ per cent. for 1946–47 season, 5 per cent. for 1947–48 and 1948–49, 2½ per cent. for 1949–50, and ½ per cent. for the 1950–51 season, this percentage being calculated on the sale value of all wool produced in New Zealand. In the ease of scoured wool the rate is charged on the greasy equivalent, and in the case of sheepskins on the value of the wool on the skins.

The following table shows the movement in the average price per pound of greasy wool realized at the 1938–39 New Zealand auctions, through the period of bulk purchasing (1939–40 to 1945–46), and at auction sales held since the termination of bulk purchasing. The reserve prices mentioned earlier are also given for the seasons 1946–47 to 1950–51.

Season.Average Price per Pound of Greasy wool.Reserve Price per Pound of Greasy Wool.
Payment to Producers under Bulk Purchasing.*At Auction Sales.

* After deduction of payments to wool-appraisers, wool-brokers, costs to f.o.b., and administration expenses of Marketing Department. The above prices do not take account of those obtained for wool required for manufacture in New Zealand during the period.

 d.d.d.
1938–39 9.17 
1939–40, 1940–41, and 1941–4212.25  
1942–43, 1943–44, 1944–45, and 1945–46 14.0875 
1945–46 14.51 
1946–47 17.8316.23
1947–48 25.1116.23
1948–49 25.8016.98
1949–50 37.9816.98
1950–51  19.10

Dairy-produce.—The contract for dairy-produce commenced with the produce of the 1939–40 season, and the quantities agreed upon were 115,000 tons of butter and 84,000 tons of cheese. The United Kingdom Government also agreed that, subject to shipping space being available, it would endeavour to ship any additional quantities available within the limits of its requirements. The basic price agreed upon for creamery butter was 112s. 6d. sterling per hundredweight finest grade, with specified deductions for lower grades, and 64s. 3d. sterling per hundredweight for finest and first-grade cheese and 62s. 3d. sterling per hundredweight for second-grade cheese. This permitted of an f.o.b. over-all average of 139s. 7¼d. per hundredweight for butter and 79s. 9d. per hundredweight for cheese (New Zealand currency).

No formal contract was completed for the 1940–41 season, but arrangements were made for 120,000 tons of butter and 107,000 tons of cheese, with prices the same as for the previous season. In addition, although it was not embodied in the contract, an undertaking was reached that the general arrangements for the purchase of dairy-produce were to continue for the duration of the war and for a subsequent period to be agreed upon.

In the publication of the details of the agreement for the 1941–42 season it was stated that for the period of the war and one year thereafter New Zealand would aim to limit production of creamery butter for export to approximately 115,000 tons per annum this figure to be reviewed annually in the light of storage and shipping situations. The price for 1941–42 was fixed on the same basis as in the previous two years. In regard to cheese, New Zealand was to aim at a production of 160,000 tons annually for the same period as in the case of butter, with a similar proviso in regard to revision of the terms of the agreement. The prices were increased to 70s. sterling per hundredweight and 68s. sterling per hundredweight for first and second grade respectively, the increase being granted to meet costs in New Zealand of the changeover of supply from butter to cheese manufacture to attain the objective of 160,000 tons of cheese for export.

A reversal of policy was announced at the commencement of the 1942–43 season. Owing to the increase in supplies of cheese from North America, the United Kingdom Government requested that the season's production be reduced to 90,000 tons with a consequential increase in butter-production. In order to meet the costs arising from the change-back from cheese to butter, the United Kingdom Government agreed to an increase of 4s. 6d. sterling per hundredweight for butter and 3s. sterling per hundredweight for cheese. These increases brought the purchase-prices to 117s. and 73s. sterling per hundredweight for finest-grade butter and first-grade cheese respectively.

For the 1943–44 season the United Kingdom Government advised that it desired not less than 85,000 tons of cheese and the maximum quantity of butter that could be supplied, and, after making provision for the increased requirements of the United States Armed Forces in New Zealand and the South Pacific area, it was estimated that from 85,000 to 90,000 tons of cheese and 96,000 to 101,000 tons of butter would be available. During the 1943–44 season, a review of prices took place, and an increase of 26s. 1½d. sterling per hundredweight of butter and 12s. 6¼d. sterling per hundredweight of cheese was granted by the United Kingdom Government, the period covered by the increased prices being 1st April, 1943, to 31st July, 1944.

A long-term contract for the purchase of exportable surpluses of butter and cheese was entered into early in 1944. The period of the contract in the first instance was for the four production years 1944–45 to 1947–48, but this was extended in 1946 to cover the 1948–49 and 1949–50 years, with arrangements to confer in 1948 on the desirability of a further extension to 31st July, 1952.

Prices were fixed for the first two years (1944–45 and 1945–46) of the contract period at 150s. 6d. and 89s. sterling per hundredweight for finest-grade butter and first-grade cheese respectively, while provision was made for prices to be reviewed for subsequent years at the instance of either Government on substantial grounds. A review took place in respect of the 1946–47 season, resulting in an increase in price of 24s. 6d. sterling per hundredweight of butter and 13s. 6d. sterling per hundredweight in the case of cheese. The proportions of butter and cheese to be shipped from the production of each season were to be as nearly as possible in accordance with the requirements of the United Kingdom Government, subject to consultation and agreement.

Negotiations in June and July, 1948, between the United Kingdom Ministry of Food and the delegation representing the Dairy Products Marketing Commission resulted in a now long-term agreement (incorporating the unexpired term of the then current contracts) for the period throughout 1948 and up to 31st July, 1955. Agreement was also reached at these discussions in respect of prices for the 1948–49 season, followed by discussions in 1949 at which prices and quantities for the 1949–50 season were agreed upon. The salient features of the 1948 agreement for the ensuing seven-year period were as follows:—

  1. All purchases are to be f.o.b. New Zealand ports and the responsibility for providing shipping for transport rests with the United Kingdom Government.

  2. Payment is to be made in sterling in London as to 97½ per cent. on shipments and as to the remaining 2½ per cent. within sixty days after the date of the last bill of lading. If the lifting of available supplies is unduly delayed, the United Kingdom Government is to make interim payments.

  3. Prices, terms, and conditions of sale set out in the agreement are to apply throughout the period, unless before the 1st May in each year either party requires reconsideration for the ensuing season. Price variations in any one season are not to exceed 7½ per cent. of the previous season's price.

  4. The United Kingdom Government and the New Zealand Dairy Products Marketing Commission are to consult and agree upon the ratio of butter-production to cheese-production for the season and the quantities of butter and cheese which will be reserved for sale to other countries during the production season.

The agreement for the season 1947–48 had provided that New Zealand was to be at liberty to reserve for sale at her own discretion from that season's production up to 1,500 tons of butter and 1,000 tons of cheese. From this free allocation the Dairy Products Marketing Commission could, and did, sell direct, or through exporters acting as its agents, to other countries for the purpose of maintaining connections in those markets where New Zealand has in the past enjoyed an established trade, and of exploring new markets which are considered to hold prospects of permanent trade in the future. Those free allocations are in addition to sales to specified colonies permitted by the United Kingdom Ministry of Food agreements with the Governments of the colonies concerned.

For the 1948–49 season, sales of butter and cheese to the United Kingdom Government, inclusive of the amounts for the colonies as above, were to be confined to not less than 97 per cent. of the exportable surplus of butter and cheese, calculated on a butterfat basis. There were no changes from the above quantities involved in the agreement for the 1949–50 season. For the 1950–51 season the agreement announced in April, 1951, provided for a full 7½-per-cent. increase in price for finest- and first-grade butter and a proportionate increase for finest- and first-grade cheese. There are no increases in the prices paid for second-grade butter or cheese or for whey butter. The quantity to be shipped is to be not less than 90 per cent. in butterfat equivalent of exportable surplus, with a maximum export of 12,000 tons of cheese to markets outside New Zealand and the programmed countries, the United Kingdom having the right to reopen the question of quantity during the season. Payment is also to be made in London as to 100 per cent. on shipment in lieu of the former 97½ per cent.

The question of long-term contracts for the sale and purchase of the exportable surplus of milk powders were also discussed in 1949 and an agreement reached by which the Ministry of Food undertakes to purchase specified percentages of the exportable surplus of buttermilk powders and skimmed roller milk powder from participating dairy factories for the six-year period 1st August, 1949, to 31st July, 1955. For 1950–51 the prices for first-quality products are as follows, second grades being 5s. less: spray skim-milk powder in tins, 77s. 6d. sterling per hundredweight; roller skim in bags, 65s.; and roller buttermilk, in bags, 60s.

The following table shows the contract price in sterling per hundredweight of butter and cheese over the period 1940–41 to 1950–51.

Season.Butter.Cheese.
Creamery. Whey.Finest and First Grade (91 Points and Over).Second Grade.
Finest Grade (93 Points and Over).First Grade (90–92½ Points).Second Grade.  First Grade.Second Grade

* Excluded from contract price, as the processing of this butter into dehydrated butterfat in New Zealand for export to the United Kingdom was in view. First-grade butterfat was purchased at 156s. 9d. sterling per hundredweight. In the later season all whey butter was shipped frozen to the United Kingdom, dehydration being discontinued at the request of the Ministry of Food.

 s.d.s.d.s.d.s.d.s.d.s.d.s.d.
1940–4111261113107610461006643623
1941–4211261113107610461006700680
1942–43117011591120**730710
1943–441431/214110½138**8583
1944–4515061493145614261386890870
1945–4615061493145614261386890870
1946–471750173917001670163010261006
1947–482050203920001970193011801160
1948–492350233923002270223013301310
1949–502526251324762446240614161396
1950–512716270324762446240615101396

Guaranteed Prices for Butter and Cheese.—The fixed prices in pence per pound of butter and cheese for export payable to dairy factories under the Marketing Act, 1936, and, as from the 1946–47 season, under the Dairy Products Marketing Commission Act, 1947, are as follows, the figures given including total farm- and factory-costs allowances.

Season.Creamery Butter.Cheese.
Finest, 94 Points and Over.Finest, 93–93½ Points (Basic Grade).First, 92–92½ Points.Second Grade.Finest, 94 Points and Over.Finest, 93–93½ Points.First, 92–92½ Points (Basic Grade).Second Grade.

* These prices were increased by 1.1457d. per pound for butter and 0.5226d. per pound for cheese for the last two months (June and July) of the 1948–49 season.

† These prices increased by 0.598d. and 0.2808d. per pound of butter and cheese respectively for the period May–July, 1950.

 d.d.d.d.d.d.d.d.
1940–41 and 1941–4215.01514.8914.827514.148.576258.5458.428.17
1942–4315.51515.3915.327514.648.886258.8558.738.48
1943–4416.38416.25916.196515.50911.352259.3219.1968.946
1944–4518.18518.06017.997517.31010.3602510.32910.2049.954
1945–4619.05918.93418.871518.18410.7842510.75310.62810.378
1946–4721.56221.43721.374520.68712.0882512.05711.93211.682
1947–4823.97723.85223.789523.10213.2182513.18713.06212.812
1948–49*24.72324.59824.535523.84813.6822513.65113.52613.276
1949–5025.994425.869425.806525.119414.4019514.370714.245713.9957
1950–5127.283927.158927.096426.408915.1084515.077214.952214.7022

NOTE.—First grade (90.91½ points) creamery butter is 0.5d. higher than second grade; first grade (91.91½ points) cheese is 0.1875d. higher than second grade.

In the 1943–44 season a farm-costs allowance and a factory-costs allowance were made to butter- and cheese-manufacturing companies to cover increases that had taken place in the prices of dairy-farm and dairy-factory requisites, &c. In addition, a factory-labour allowance was granted to cover an increase in the wages of dairy-factory workers. In 1944–45 a farm-labour allowance was introduced to compensate for increased wages-costs on farms. These allowances were increased during the 1945–46 and 1946–47 years. As stated, these allowances have been included in the preceding table.

The prices quoted in the foregoing table enabled efficient dairy companies to pay to suppliers the following amounts in peace per pound of butterfat for butter or for cheese manufacture over the same period. Also given is the average payout to dairy-farmers per pound of butterfat supplied during this period, the amounts shown including farm-costs and farm-labour allowances.

Season.Price per Pound of Butterfat used for—
Butter-making (Basic Price).Cheese-making (Basic Price).Butter-making (Average Payout).Cheese-making (Average; Payout).

* Not yet available.

 d.d.d.d.
1940–41, and 1941–4215.88017.88016.08718.060
1942–4316.49018.49016.56918.577
1943–4417.25719.25717.59719.655
1944–4519.37721.37719.79022.055
1945–4620.39422.39420.56822.884
1946–4723.39125.39123.69125.753
1947–4825.90727.90726.21827.943
1948–49—    
  August, 1948, to May, 194926.75128.75127.36829.192
  June, 1949, and July, 194928.14630.146  
1949–50—    
  August, 1949, to April, 195028.24430.24428.72030.785
  May, 1950, to July, 195028.97230.972  
1950–5129.67831.678**

The structure of the basic price per pound of butterfat for butter manufacture over the period is given in the next table.

Season.Working-costs.Capital Charges.Labour Reward.Total Price per Pound Butterfat.
 d.d.d.d.
1940–415.3403.2408.84015.880
1941–425.3403.2408.84015.880
1942–435.5103.2409.28016.490
1943–446.1073.2409.45017.257
1944–456.7573.24010.92019.377
1945–467.2543.24011.44020.394
1946–478.0153.24013.67623.391
1947–4810.0113.24014.19625.907
1948–49—    
August, 1948, to May, 194910.1793.24014.87226.751
June, 1949, and July, 194910.1793.24016.26728.146
1949–50—    
August, 1949, to April, 195010.1993.24016.34528.244
May, 1950, to July, 195010.1993.24017.07328.972
1950–5110.9053.24017.07329.678

The total price given in each case is the figure arrived at after adding the three units allowed respectively for farm working and maintenance, capital charges, and labour reward, but after subtracting a return fixed at 1.540d. per pound of butterfat, this being a standard allowance for pigs. The price for butterfat for cheesemaking has been 2d. a pound higher in each year since 1937–38.

Meat.—The quantity of meat agreed upon to be purchased from the production season ended 30th September, 1940, and from the carry-over of the previous season (45,000 tons) was 300,000 tons. This quantity included all classes of meat, also edible offals. In addition, the United Kingdom Government undertook to make every endeavour to provide shipping space for such additional quantities as might be available.

The schedule of prices per pound paid by the United Kingdom Government to the New Zealand Government for the principal classes of frozen meats for the 1939–40 season are shown in the table given later. These prices are on an f.o.b. basis and are expressed in sterling.

The actual liftings of meat for the first contract year were 351,000 tons, leaving a carry-over at 30th September, 1940, of 39,938 tons.

For the 1940–41 season, the contract provided for the purchase of 248,000 tons of meat, shipped or unshipped, from the production season ended 30th September, 1941, and from the carry-over of the previous season. The actual liftings of meat under the second year's contract were 268,650 tons, which left a carry-over of 77,902 tons of export meat. With a few minor exceptions, the prices were the same as those paid for the 1939–40 season.

The contract for the third year (1941–42 season) provided for the purchase of 190,000 tons of frozen meat shipped or unshipped, and 37,150 tons of canned meats. The equivalent in carcase-meat of 37,150 tons of canned meats is 111,500 tons, so that the contract for frozen and canned meats represented a total of 301,500 tons of carcase-meat.

For the calendar year 1943 the United Kingdom Government undertook to purchase up to the total quantity shipped in the calendar year 1942. In arriving at the total tonnages, the calculation included the carcase equivalent of canned moats, dried meat, and also shipments to the Middle East; and, on this basis, the figure of 328,000 tons was arrived at. New Zealand was to provide the maximum quantity possible in the form of canned and dehydrated meats in order to reduce the balance of the 328,000 tons, for which refrigerated space was required, to the lowest possible figure.

For the calendar year 1944 the United Kingdom Ministry of Food undertook to purchase and lift the maximum quantity of meat that New Zealand could make available. New Zealand was asked to take all possible steps to increase production, and it was requested that certain classes of meat which had previously been canned or otherwise disposed of (notably ewe mutton) should be shipped in frozen form. It was estimated that the total quantity of frozen meat which would be shipped to the United Kingdom during the twelve months ended 30th September, 1944, would be approximately 212,617 tons. In addition, deliveries of frozen meat to the United States Joint Purchasing Board were estimated to amount to 43,390 tons, leaving a carry-over of meat for export at 30th September, 1944, of 62,504 tons.

A long-term contract was negotiated covering the period 1944–48 by which the United Kingdom undertook to take the whole of the New Zealand exportable surplus. This agreement was extended to cover the production years 1948–49 and 1949–50, with arrangements to confer in 1948 on the desirability of a further extension of two years. A further agreement was signed in 1948 covering the period October, 1948, to 30th September, 1955, the general scope of this long-term contract for the purchase of the exportable surplus of meat (after providing for domestic consumption and quantities to be mutually agreed upon for supply to other markets) being as follows:—

  1. The arrangement covers the total available supplies of beef, veal, mutton, and lamb, and the frozen sundries and edible offals thereof. All products named are to be as normally graded for export and available for shipment in the period 1st October, 1948, to 30th September, 1955:

  2. During the first four years of the agreement the quantity of pig-meat covered by the contract is to be the total available supplies, the United Kingdom to negotiate in advance the quantities required in the final three years:

  3. The prices are to be reviewed annually, but are subject to a maximum annual variation of 7½ per cent. above or below the previous year's price:

  4. Purchases are to be on an f.o.b. basis, and the responsibility of providing freight rests with the United Kingdom Government. Payment is to be made in sterling in London as to 97½ per cent. on shipments and the remaining 2½ per cent. within sixty days after the date of the last bill of lading. If the lifting of available supplies is unduly delayed, the United Kingdom Government is to make interim payments.

  5. The United Kingdom Government will progressively resume the importation of chilled beef from New Zealand as and when the shipping position permits.

Negotiations on meat prices for the 1950–51 season were protracted but agreement was eventually reached in January, 1951.

A review of the contract prices under the bulk-purchase agreements is given in the following table. All prices are in sterling per pound. Where seasons are combined, this indicates that there was no change during the seasons concerned.

Item.Season.
1939–40 and 1940–41.1941–421942–43 and 1943–44.1944–45 and 1945–46.1946–47 and 1947–48.1948–49.1949–50.1950–51.

* These prices were increased by 0.5d. in the 1943–44 season.

Lambs—        
 d.d.d.d.d.d.d.d.
  Downs (23–36 lb.)6.3756.756.758.59.137510.837511.650312.5625
  Canterbury (23–36 lb.)6.31256.68756.68758.41669.047810.731211.536112.4375
  Cross bred (23–36 lb.)6.18756.56256.56258.25868710.518711.307612.1875
  Seconds (23–36 lb.)5.8756.256.257.83338.42089.987510.736610.75
Wethers—        
  Prime (48 lb. and under)4.31254.56254.5625*5.756.18127.33127.88117.875
  Seconds (56 lb. and under)3.68753.93753.9375*4.91665.28536.26876.73896.6875
Ewes—(64 lb. and under)2.753.03.0*3.66663.94164.6755.02564.75
Quarter beef—        
  Ox and heifer G.A.Q.—        
    Hinds4.3754.754.93755.83336.27087.43757.99538.8353
    Fores2.56252.93753.1253.41663.67284.35624.68295.5229
  Ox and heifer F.A.Q.—        
    Hinds3.43753.81254.04.58334.9275.84376.28206.2820
    Fores2.52.8753.06253.33333.58334.254.56874.5687
  Cow G.A.Q.—        
    Hinds3.253.6253.81254.33334.65835.5255.93945.9394
    Fores2.43752.81253.03.253.49374.14374.45454.4545
Pigs—        
  Porkers—        
    Full carcases (first quality) Sides (first quality)6.06.257.58.08.910.5611.35214.352
 6.31256.56257.8758.41679.363511.1111.942214.9422
Baconers—        
    Full carcases (first quality)6.06256.43757.7258.08348.992710.6711.470214.4702
  Sides (first quality)6.81257.18758.6259.083410.105211.9912.889215.8892

The prices paid to producers by the packing companies have been drawn up in the form of an “opening schedule” at the beginning of each season by a committee representing producers, processors, and the Marketing Department. These prices include allowances for skin, wool, and hides, and are therefore adjusted during the season on account of, for example, wool growth. The schedule for the 1940–41 to 1950–51 seasons is given below.

Item.Season.
1940–41.1941–42.1942–43.1943–44.1944–45.1945–46.1946–47.1947–48 and 1948–49*1949–50.1950–51.§

* Schedule unchanged from 1947–48 except for boner beef, which rose to 31s.

† Canterbury lamb was 8⅛d. and Seconds (South Island) was 7½d. in 1940–41.

‡ From 1947–48 onwards price is given for 720 lb. and under.

§ Owing to the late commencement of the season, figures quoted are the effective opening prices issued in December, 1950.

Price of Lamb, Wether, and Ewe Mutton, in Pence per Pound
Lambs—          
  Downs (36 lb. and under)          
  Canterbury (36 lb. and under)88⅜91011⅛11½19
  Crossbred (36 lb. and under)8⅛10⅞11¼18¾
  Seconds (36 lb. and under)7⅜7⅝9⅛9⅞10½18
Wethers—          
  Primes (48 lb. and under)—          
  North Island57⅛10½
  South Island55556⅞10¼
  Seconds (56 lb. and under)—          
  North Island6⅜
  South Island556⅛
Ewes (64 lb. and under)32⅝2⅝3⅛3⅝3⅝4⅛5⅛
Price, in Shillings and Pence, per 100 lb. of Beef
Quarter beef—          
  Ox—          
  C.A.Q. (840 lb. and under)34 034 034 034 040 042 046 051 057 070 0
  F.A.Q. (all weights)29 029 029 029 035 037 040 043 049 058 6
  Heifer—          
  Q.A.Q. (840 lb. and under)32 632 633 033 039 041 045 050 056 070 0
  F.A.Q. (all weights)27 627 628 028 034 036 039 042 048 058 6
Cow, G.A.Q. (all weights)26 626 627 027 633 635 638 041 647 658 0
Boner beef (cow)25 615 620 022 023 023 026 028 634 048 0

The substantial increases shown in 1950–51 as compared with the previous year are largely due to higher allowances for skins, wool, and hides involved in the determination of opening prices. The 1950–51 season was the first season since 1938–39 in which pelt prices were not stabilized, while the allowance for wool reflects the substantial increase in values recorded in sales during the current season.

THE NEW ZEALAND DAIRY BOARD.—A brief account of the history and functions of the New Zealand Dairy Board will be found on pages 893–894 of the 1947–49 issue of the Year Book.

FARM MACHINERY ON OCCUPIED HOLDINGS.—The following table contains a summary of farm machinery employed on holdings outside borough boundaries at 31st January in each of the years shown. This information was not collected during the three years 1943–45.

1939.1942.1946.1947.1948.1949.

* Not available.

† This item covers only those machines actually used for threshing wheat or oats during the year specified.

Milking-machines28,97031,48731,80532,59633,46134,114
Cream-separators55,66554,10747,78348,19448,45748,451
Shearing-machines—      
  Plants10,06411,55513,55414,56415,46816,392
  Stands26,06328,61132,16733,90735,44836,952
Agricultural tractors9,63913,96718,94021,15623,42327,447
Rotary hoes and garden tractors*8131,2241,6462,2532,660
Electric motors51,34465,69976,96482,72188,28294,047
Internal-combustion engines22,60123,88221,47323,10924,92226,199
Threshing-machines7401,1291,5201,6411,7082,024

The figures for 1949 show a continuation of the trend towards more intensive mechanization of farm work that has been in evidence over a considerable period, During the war and early post-war years this movement was retarded through inability to procure the necessary equipment, but there has been a considerable speeding up in the last three years. Particularly noticeable are the increases in agricultural tractors and threshing-machines, the latter being largely accounted for by a change in harvesting practice, the mobile bonder harvester having mostly supplanted the stationary threshing-mill.

Milking-machines.—Information concerning milking-machines on farms was first collected in 1919, in which year there were 7,577 stands recorded. Since that date the use of milking-machines has expanded rapidly, although, as might be expected, the rate of increase was slowed down somewhat during the war period. During the six-years from 1933 to 1939 milking-machines increased at an average rate of 770 per year, while during the six-yearly period 1940–46, the average increase was 430 per year. The subsequent three years showed increases of 791, 865, and 653 respectively. The number of cows in milk on holdings employing milking-machines in 1949 was 1,616,265, which is 94.3 per cent. of the total number of cows in milk. In 1948 the corresponding percentage was 91.9 and in 1939, 81.2.

The following table shows for the years 1940 and 1949 the number of farms with milking-machines, and the aggregate cow-capacity thereof, classified according to size of plant—i.e., cow-capacity.

Number of Machines.Individual Cow-capacity.Number of Farms.Aggregate Cow-capacity.
1940.1949.1940.1949.
One12881,0032881,003
 26,3207,43612,64014,872
 39,0408,81927,12026,457
 48,6849,43334,73637,732
 51,5841,8547,9209,270
 61,5082,9059,04817,430
 736118252826
 81399241,1127,392
 9 and over452154822,301
  Totals, one machine 27,64432,70793,598117,283
Two 7395815,5525,210
Three 8348957617
Four 2213358225
Five and over 138352176
  Grand totals 28,50133,357100,817123,511

A point of interest is that while the total number of farms with milking-machines has risen by 4,856, the number of farms with multiple plants has dropped from 857 to 650. On the other hand, single-unit plants of 6 cow-capacity and upwards have shown a greater relative increase than those below that number. This has been particularly so during the last few years, in fact, plants of three and four cow-capacity have recorded decreases.

The following table shows, by size of herd in milk, both the number of farms equipped with milking-machines and farms with dairy cows in milk but no milking-plant. It will be noted that the only decreases in farms with milking-machines are confined to the larger herds, which would appear to follow the drop in multiple plants referred to above.

Size of Herd (Cows in Milk).Farms with Milking-machines.Farms without Milking-machines.
1940.1949.1940.1949.

* This total includes 228 cases of farms with milking-machines but no cows in milk. Comparable figures are not available for 1940.

Under 5715859*22,75525,441
  5 and under 108028,7904,947
  10 and under 201,6482,7685,7841,984
  20 and under 304,4624,5542,032543
  30 and under 405,3455,718562109
  40 and under 504,4975,17417420
  50 and under 603,3303,8537410
  60 and under 702,7073,09830 
  70 and under 801,8032,040375
  80 and under 901,1761,484
  90 and under 100842943  
  100 and under 1251,1011,238  
  125 and under 150416424  
  150 and under 200289291  
  200 and over170111  
    Totals28,50133,35740,23833,059

Agricultural Tractors.—During the ten years from 1939 to 1949 the number of agricultural tractors employed on holdings of 1 acre and over outside borough boundaries rose from 9,639 to 27,447, an increase of 185 per cent. These figures do not include rotary hoes or garden tractors, of which there were 2,660 in 1949, but similar information is not available for the earlier year.

The increase in tractors has been accompanied by a decrease in the number of horses employed on farms, particularly those described as “draught and throe-quarter draught.” The total number of horses in 1949 was 196,055, of which 74,004 were classed as draught or three-quarter draught, 31,380 as spring-cart or light artillery (including half-draught), 73,709 as hacks or light working horses, and 16,962 as thoroughbred or other. Comparable figures for 1939 were 274,803, 128,908, 50,715, 79,110, and 16,070 respectively. Incidentally, the number of agricultural tractors increased from 23,423 in 1948 to 27,447 in 1949, whereas the number of draught and three-quarter draught horses fell from 81,871 to 74,004, a decrease of 9.5 per cent.

In the following table, which gives particulars of tractors and horses as at 31st January of the years shown, horses described as “thoroughbred or other” have been excluded. The number of holdings on which tractors were located in 1949 was 24,416 out of a total of 87,076, whereas horses were present on 54,963 holdings. In 6,510 cases there were tractors but no horses, 37,057 cases in which there were horses but no tractors, while both tractors and horses were present in 17,906 instances.

Tractors, but no HorsesTractors and Horses.Horses, but no Tractors.
One Tractor.More than One Tractor.One Tractor.More than One Tractor.
19463,09433512,2661,31143,285
19473,97537713,2811,43841,512
19484,82345714,1691,59039,812
19495,88762315,8932,01337,057

The 2,636 cases in 1949 in which there were more than one tractor were made up as follows: two tractors, 2,332; three, 250; four, 39; five or more, 15.

Threshing-machines.—Information collected in 1949 in conjunction with the monthly threshing returns show that a total of 2,024 machines (1,839 header harvesters, 80 threshing-mills, and 105 tin-mills) were engaged in threshing either wheat or oats in 1949, as compared with a total of 740 machines in 1939. The increase in the total number of machines during the ten-year period is accounted for by the change in harvesting methods that has taken place, the mobile header harvester having largely supplanted the stationary threshing-mills. The header harvester was first employed in New Zealand in the harvest of 1930. Exact information concerning the numbers of these machines was not available prior to 1945, but it has been stated that there were about 40 in operation in 1931, over 200 in 1936, and nearly 500 in 1939. Assuming the figure of 200 in 1936 to be approximately correct, the increase in the thirteen years ended in 1949 was in the vicinity of 1,600, whereas threshing-mills (including tin-mills) fell from approximately 400 to 185.

The header harvester is used more extensively in connection with the wheat crop, many varieties of which are very well suited to heading, than in cat-threshing, where the threshing-mill still plays a part of major importance. In 1949 header harvesters threshed 87.9 per cent. of the wheat yield from 89.0 per cent. of the grain area. Threshing-mills and tin-mills accounted for 7.3 per cent. and 4.8 per cent. of the yield and 6.5 per cent. and 4.5 per cent. of the area respectively. Figures on a similar basis for oats are: header harvesters, 56.8 per cent. of yield and 62.6 per cent. of area; threshing-mills. 24.4 per cent. of yield and 20.8 per cent. of area; and tin-mills, 18.8 per cent. of yield and 16.6 per cent. of area.

Of the 2,024 machines engaged in threshing wheat or oats in 1949, 1,306 (1,227 header harvesters, 37 threshing-mills, and 42 tin-mills) were located in the Canterbury Land District, which produced 70 per cent. of the total wheat yield and 52 per cent. of the oat yield. In Otago there were 276 machines, made up of 245 headers, 12 threshing-mills, and 19 tin-mills, while Southland recorded 194 machines (146 headers, 20 threshing-mills, and 28 tin-mills).

The following table shows the average yield per acre of wheat according to the type of threshing-machine used for the last five seasons. The percentages of threshing by each type of machine are also shown.

Header Harvester.Threshing-mills.Tin-mills.Totals.
Percentage of Total Yield.Average Yield per Acre.Percentage of Total Yield.Average Yield per Acre.Percentage or Total Yield.Average Yield per Acre.Percentage of Total Yield.Average Yield per Acre.
  Bushels. Bushels. Bushels. Bushels.
1944–4579.4237.2113.3443.537.2441.16100.0038.22
1945–4680.5431.9513.5542.785.9140.88100.0033.54
1946–4782.0739.9712.4545.285.4841.33100.0038.06
1947–4884.2735.4311.2642.794.4739.75100.0036.31
1948–4987.9539.957.2745.174.7843.42100.0040.44

The foregoing analysis for 1948–49 is based on a total of 4,793 crops, covering approximately 72 per cent. of the total wheat area.

There would appear to be a tendency for header yields to be lower than the yields of crops threshed with threshing and tin-mills, but in the absence of such related matters as Boil types, &c., no definite conclusions can be drawn. It is mainly on the heavier soil types that threshing-mills and tin-mills have been retained. This is particularly so in the case of the soft-chaffed wheats, Dreadnought and Hunters, which on the whole, are header-harvested only on lighter land.

A similar analysis to that given for wheat is now shown for oats. The number of crops in 1948–49 was 3,742, which covered approximately 67 per cent. of the oat area threshed.

Header Harvester.Threshing-mills.Tin-mills.Totals.
Percentage of Total Yield.Average Yield per Acre.Percentage of Total Yield.Average Yield per Acre.Percentage of Total Yield.Average Yield per Acre.Percentage or Total Yield.Average Yield per Acre.
  Bushels. Bushels. Bushels. Bushels.
1944–4537.7745.5945.0360.4917.2054.20100.0052.91
1945–4636.0738.9349.7860.6314.1549.56100.0049.18
1946–4737.7740.7747.0757.6215.1649.45100.0048.78
1947–4840.9836.6042.4153.1816.6147.84100.0044.16
1948–4956.8243.1224.4155.7518.7753.52100.0047.48

18 B—AGRICULTURAL PRODUCTION

As indicated in the general remarks included in the introductory portion of the preceding subsection, grassland products account for a very high proportion of the farm output of New Zealand. It must not be assumed, however, on this account, that cropping is of minor importance in the economy of New Zealand. Practically the whole of the internal requirements in respect of agricultural products are grown within the country, the only exceptions of note being tropical or subtropical products such as tea, sugar, cotton, bananas, &c. In most years also it has been found necessary to import certain quantities of wheat, local production being insufficient for the country's needs.

Fruit is grown on a considerable scale, home requirements of all the important fruits and berries grown in temperate zones being satisfied by New Zealand orchard production. Citrus fruits are grown in the sub-tropical northern portion of New Zealand, and grapes are also cultivated in certain localities with a favourable climate. In addition to the needs of local requirements, a substantial export trade in apples—and to a lesser extent in pears—is carried on in normal times.

In rural New Zealand and in many urban localities the kitchen-garden supplies a very considerable proportion of family requirements of vegetables, while there is a substantial area planted in market gardens, both inside and outside borough boundaries. The major commercial cash vegetable crops are potatoes and onions. Local supplies of potatoes are, in most seasons, quite adequate, and occasionally there is a material surplus. In most recent years the production of onions has also been more than sufficient for local requirements. Although the importance of vegetable-growing in agricultural production cannot be measured (a considerable, though unknown, proportion being non commercial), it will be realized that this branch of crop-production is of some consequence in that the requirements of the people are supplied from New Zealand production.

Coincident with the growth of the stock-raising industries, there has been a considerable increase in areas sown for supplementary fodders. While practically throughout the whole of New Zealand animals can be grazed in open pasture for the full twelve months of the year, the winter growth of grass, except in certain favoured localities, requires to be supplemented in order to keep stock in good condition during the colder months, and in some districts supplementary fodders are necessary in the drier summer months. The supply of supplementary fodders is adequate both in quantity and in quality, so that New Zealand imports animal-feeding stuffs to a very minor extent only.

Hay and ensilage crops are grown almost exclusively on the farms where they are consumed, though there is some degree of localization in the growing of certain other supplementary fodder crops. The bulk of the turnip crop is grown in the South Island, and that Island also usually predominates in the production of both rape and kale, since the colder climate necessitates more extensive supplementary feeding than in the North Island.

The renewal of pasturage requires the annual supply of very considerable quantities of grass-seeds, which are now grown almost entirely in New Zealand. There is a small import of certain classes of seeds, but this is almost negligible in relation to requirements: on the other hand, an appreciable export trade in some species of grass-seeds has been developed. A considerable expansion occurred in this trade during the late war-years and the quantity of grass and clover seeds exported in 1949 was three and one-half times greater than in 1939.

GEOGRAPHIC DISTRIBUTION.—Grain-growing is localized to a considerable extent, the Canterbury Land District, with its fertile plains, supplying in 1948–49, 70 per cent. of New Zealand's wheat crop, 52 per cent. of the oats threshed, and 67 per cent. of the barley yield. Maize-growing is largely confined to certain portions of the South Auckland and Gisborne districts. The commercial growing of peas is carried out extensively in Canterbury, and to a lesser extent in Marlborough and Otago, Canterbury alone producing just under half of the total yield. The districts of Canterbury, Otago, and Southland supplied in 1948–49, 84 per cent. of the total production of grass-seeds. The Canterbury district produces the bulk of the commercial potato crop followed by Wellington, while the growing of potatoes for the early market is of importance in the North and South Auckland districts.

Commercial orchards in New Zealand are largely confined to certain areas suited by climatic and soil conditions, while access to markets is also an important factor, particularly in respect of small fruits. The Nelson district is famed for its apple-orchards, a high percentage of the crop from this district normally being exported. Central Otago is well suited to the growing of stone fruits—notably apricots. In several other districts commercial orchard production is successfully carried on: special mention may be made of citrus culture in certain northern districts.

Grape-growing is of importance in North Auckland, Auckland, and Hawke's Bay. Tobacco-growing is mainly confined to the Waimea County, in the Nelson district, hop-growing also being largely concentrated in this area.

The total area devoted to each crop in the 1948–49 season and the proportions per cent. in each land district are given in the following table.

Name of Crop.Area.Land District Percentages.
North Auckland.South Auckland.Gisborne.Hawke's Bay.Taranaki.Wellington.Marlborough.Nelson.Westland.Canterbury.Otago.Southland.
For threshing—Acres.            
  Wheat146,707     43  72138
  Oats78,300   1 12  601323
  Barley58,707  23 873 6791
  Maize6,588528597  1     
  Peas49,152  52 4181 48148
  Linseed7,738      2  681218
  Other crops10,863  1   2  61306
For chaff, hay, or ensilage—             
  Oats67,492 2 21632 432615
  Grasses and clovers601,384133623141112 747
  Lucerne47,224113110 562 43181
  Other crops1,60651632614161201115
Green fodder—             
  Oats49,05813 31663 58145
  Rape163,829 117 431 52229
  Kale (including chou moellier)87,199 41264201  20816
  Other crops29,7045122611121 242313
Root crops—             
  Swedes176,723218 24811 92134
  Turnips175,40826 21512 481617
  Turnips and rape31,994 2 1131  202052
  Potatoes18,9406325 1713 5274
  Other crops5,38412826521 1 27162
Grasses and clovers for seed160,057  14 451 471424
Tobacco3,484       100    
Linen-flax4,717         91 9
Vegetable crops for processing1,460122 68  17  1  
Pumpkins and marrows (non-commercial)1,0191018283932      
Other field crops8241252 1   26576
Orchards18,667209217 3320 8171
Grape-vines9944617432   1    
Passion-fruit vines15548436 11 1    
Hop-vines614       100    

BUSHEL WEIGHTS.—For statistical and other purposes, it is at times necessary to convert bushel units to a weight basis. For New Zealand produce, conversion is effected by using the following weights per bushel for the commodities mentioned.

Produce.Weight of Bushel.
 lb.
Wheat60
Oats40
Barley50
Maize56
Peas60
Ryecorn54
Beans65
Grasses and clovers20

AREA UNDER CULTIVATION.—A general summary of the areas under cultivation during each of the last eleven years is given in the following table. The statistics quoted in this and other tables in this subsection relate to holdings of 1 acre or upwards outside borough boundaries.

In addition to the areas shown as under cultivation, there is a considerable area of occupied land still unimproved. In 1948–49 the total area of unimproved occupied land was 22,589,300 acres. Cultivated land accounted in 1948–49 for 47 per cent. of the total area in occupation, unimproved land accounting for the remaining 53 per cent. The area in phormium—a productive asset—is included in the total of unimproved land, while an appreciable proportion of tussock and other naturally established native grasses is of considerable economic utility, particularly in the South Island, where it is used for extensive pastoral farming.

Year.Pasture Land.*Field Crops.Plantations.OrchardsLying Fallow.Other Cultivated Land.Total Cultivated Land.

* Excluding areas of grasses and clovers cut for seed, hay, or ensilage, which have been Included in field crops.

† Approximate.

 Acres.Acres.Acres.Acres.Acres.Acres.Acres.
1938–3916,783,6121,807,445844,42321,753140,92595,79119,693,949
1939–4016,632,6081,956,096839,90620,899112,19597,64519,659,349
1940–4116,788,1212,048,198852,19620,064104,18993,88819,906,656
1941–4216,742,1532,010,560857,93319,544110,49694,08819,834,774
1942–4316,992,3431,911,833851,25819,190110,00096,42619,981,050
1943–4416,774,3041,965,670859,73719,196110,000101,09219,829,999
1944–4516,619,7132,013,214867,45019,614110,000102,05819,732,049
1945–4617,036,8221,839,589861,00818,235121,03390,55519,967,242
1946–4717,013,0571,984,395869,95918,253123,65494,54520,103,863
1947–4817,088,8101,904,377871,35618,667122,81296,89220,102,914
1948–4917,033,7341,985,381884,07718,667100,270106,07020,128,199

In the following pages statistics of the principal crops are quoted with explanatory comment. In addition to summary tables, covering in each instance a range of related items, important individual crops are discussed under separate headings.

PRINCIPAL FIELD CROPS.—The areas under each of the principal field crops for the last five years have been as follows:—

Crop.1944–45.1945–46.1946–47.1947–48.1948–49.

* Including turnips and rape mixed.

† Excluding wheat, oats, barley, maize, and peas fed off.

 Acres.Acres.Acres.Acres.Acres.
Wheat188,771164,286144,006125,439148,653
Oats228,470182,123181,469177,252194,850
Barley43,20054,71762,84573,27570,807
Maize14,83015,28214,29813,30312,448
Peas46,09933,45052,18252,82749,813
Linseed4,32610,36112,29218,7287,738
Linen flax12,6864,5904,0704,5544,717
Potatoes29,77423,22819,27621,88718,940
Turnips and swedes*393,415380,693390,243400,486384,125
Mangolds4,8724,0923,3222,8793,066
Onions1,9151,3871,2021,5721,175
Tobacco2,8392,8833,0913,4023,484
Green fodder242,801242,158244,170246,336261,591
Grasses and clovers for seed180,542224,638254,268142,20616,057
Grasses and clovers for hay or ensilage554,654442,093540,016559,956601,384
Lucerne for hay or ensilage46,45541,41642,64246,30347,224
Other crops17,56512,19215,00313,97215,309
    Totals2,013,2141,839,5891,984,3951,904,3771,985,381

The figures quoted in the foregoing table in respect of wheat, oats, barley, maize, and peas relate to the total areas under these crops for grain or fodder. It should be noted that a considerable portion of the area under certain crops, particularly oats, is cut for chaff or is fed off. In regard to peas it should also be noted that areas of this crop for canning and for domestic consumption in the form of green peas are included elsewhere.

GRAIN AND SEED CROPS.—Details of areas for threshing, total yields, and yields per acre of the principal grain and seed crops during the last five years are set out in the following table.

Year.Wheat.Oats.Barley.Maize.Peas.Lupins.
AREAS FORTHRESHING
 Acres.Acres.Acres.Acres.Acres.Acres.
1944–45183,88677,68437,3258,47343,9706,479
1945–46161,04957,27848,6467,03432,7402,109
1946–47141,40755,29753,0417,86551,4815,282
1947–48123,75163,15963,3987,34552,1383,677
1948–49146,70778,30058,7076,58849,1524,434
TOTAL YIELDS
 Bushels.Bushels.Bushels.Bushels.Bushels.Bushels.
1944–456,992,2044,209,1431,384,957443,1511,037,551134,696
1945–465,439,0412,796,8771,872,316350,188816,89728,093
1946–475,368,1202,686,2112,026,786396,6221,231,182127,455
1947–484,539,0172,853,5172,087,900378,2471,139,32556,467
1948–495,958,0263,718,5972,256,362357,2701,195,19666,321
YIELDS PER ACRE
 Bushels.Bushels.Bushels.Bushels.Bushels.Bushels.
1944–4538.0254.1837.1152.3023.6020.79
1945–4633.7748.8338.4949.7924.9513.32
1946–4737.9648.5838.2150.4323.9224.13
1947–4836.6845.1832.9351.5021.8515.36
1948–4940.6147.4938.4354.2324.3214.96

The area sown to linseed has increased very considerably during the last few years, although there was a very heavy fall in 1948–49. The acreage harvested in 1948–49 was 7,738 acres. Areas for the five preceding seasons were as follows: 1947–48, 18,728 acres; 1946–47, 12,292 acres; 1945–46, 10,361 acres; 1944–45, 4,326 acres; 1943–44, 1,263 acres. The aggregate yield in 1948–49 was 55,406 cwt.

Other crops for threshing in 1948–49 include the following, the resultant yield in each case being given in parentheses: rape, 1,049 acres (635,987 lb.); kale (including chou moellier), 815 acres (262,592 lb.); white-fleshed (soft) turnips, 464 acres (222,797 lb.); yellow-fleshed (hard) turnips, 467 acres (226,701 lb.); swedes, 478 acres (302,642 lb.); mustard, 495 acres (219,975 lb.); beans, 215 acres (5,656 bushels); and ryecorn, 2,283 acres (53,334 bushels).

It was the practice in pre-war years to import considerable quantities of small seeds, but the extension of the conflict in Europe, together with the rapid expansion of Japanese aggression in the Pacific, rendered this no longer possible, and it became necessary to make an effort to raise the full domestic requirements in this direction within the shores of New Zealand. The success of the effort is exemplified in the total areas planted in other crops for seed (i.e., crops other than the principal crops stated above, wheat, oats, barley, maize, peas, lupins, and linseed), which rose from 342 acres in 1938–39 to 6,674 acres in 1942–43. Although there has been some reduction from the peak figure of that year, the area is still substantial, being 6,429 acres in 1948–49 and 5,205 acres in 1947–48. These figures cover such other crops as itemized above, together with a variety of smaller areas relating to crops, such as mangolds, onions, vetches, tares, radish, silver beet, red beet, carrots, pumpkins, marrows, leeks, cauliflower, cabbage, parsnips, &c. It was found in most instances that the locally produced seed was fully up to, and indeed, in some cases (e.g., swede and turnip seed), superior to the standard of that previously imported. It has been shown, for instance, that swede and turnip crops grown from locally produced seed have been comparatively free from the widespread dry-rot disease which formerly attacked these crops when grown from imported seed.

WHEAT.—Wheat is the most important grain crop grown in New Zealand. The industry enjoys a sliding scale of Customs duties levied on imports of wheat and flour and also regulation of prices on a basis that is calculated to give the grower a satisfactory return for his produce.

Further efforts in encouraging wheat-growing with a view to making New Zealand entirely self-sufficient in respect of requirements of wheat and wheaten products were initiated by the Government in 1936. An Order in Council which came into force in March of that year prohibits the importation of wheat or wheaten flour, except under permit granted by the Minister of Industries and Commerce. With a view to reducing imports of Grade A wheat necessary for mixing purposes, the Wheat Research Institute has been endeavouring to encourage the growing in New Zealand of better-quality varieties which do not require blending with imported wheat. The Institute has already achieved satisfactory results, its most outstanding success being the development of a Tuscan variety known as Cross 7. Though not grown on a commercial scale until 1935–36, Cross 7 has for the last seven seasons held pride of place in the area grown for grain. Second and fourth places are taken by Fife Tuscan and Tainui respectively, these types also having been evolved by the Wheat Research Institute.

Despite the protection and encouragement given to wheat-growers, the results have, in the main, been disappointing. Appreciable increases occurred in the four seasons 1939–40 to 1942–43, but decreased sowings and a low average yield resulted in production for 1943–44 being 2,610,857 bushels below that for 1942–43. A further decline in the acreage sown for 1944–45 season resulted in a further drop in production, this despite the fact that the average yield was the highest yet recorded. As an incentive to increased sowings for the 1945–46 season it was decided to pay a production bonus, linked to the attainment of an increased acreage.

However, a most unfavourable autumn and winter were instrumental in delaying the preparation of the soil, and consequently sowings, to such an extent that the area harvested was one of the lowest on record. In 1946–47 the position deteriorated further, the area for threshing, 141,407 acres, being, with one exception, 1919–20, in which 139,611 acres were threshed, the lowest devoted to the wheat crop since comparable data first became available in 1879. The 1947–48 area fell even below this figure, only 123,751 acres being threshed, but an increase to 146,707 acres was recorded in 1948–49. The average yield in 1948–49 (40.61 bushels) is the highest yet recorded in the history of New Zealand agriculture.

The following diagram shows the fluctuations that have occurred in the area sown in wheat during the last twenty-one years, together with the total yield and the average yield per acre.

Varieties of Wheat.—The choice of wheat varieties for sowing is influenced by their suitability to local conditions of climate, soil type, &c. Wheatgrowers receive valuable guidance regarding suitable varieties as the result of research work and field trials undertaken by the Wheat Research Institute and the Department of Agriculture. Particulars regarding varieties of wheat were obtained covering 72 per cent. of the total area of wheat threshed for the harvest of 1949. Of the three groups of varieties, Tuscan accounted for 97.6 per cent. of the area and 97.5 per cent. of the yield; Hunter's, 1.7 per cent. of the area and 1.9 per cent. of the yield; and Pearl, 0.7 per cent. of the area and 0.6 per cent. of the yield. Of the individual varieties, Cross 7, previously referred to, produced 73.5 per cent. of the total yield, while Fife Tuscan produced a further 10.4 per cent. These two varieties accounted for 73.1 per cent. and 11.5 per cent. of the total area respectively.

OATS.—Although, as stated above, wheat is the most important grain crop of New Zealand, the area under oats (for all purposes) normally exceeds that under wheat. The greater portion of the oat crop is usually converted into chaff without threshing, but the proportion so dealt with depends partly on the condition of the crop and partly on market conditions. There has been a considerable decrease in the area under oats during the last few years, the aggregate area for the five years ended 1948–49 (964,164 acres) being 296,008 acres or 23.5 per cent., less than the total for the preceding five-yearly period. This decrease is due in some measure to the decline in the horse population, which is referred to in the next subsection. On the other hand, the acreage threshed, although fluctuating to a considerable extent, has been greater. In the five years 1944–45 to 1948–49 the area so utilized was 15.1 per cent. above that of the preceding five years. In the later period the average proportion of the total crop threshed was 34.4 per cent., as compared with 22.9 per cent. in the earlier period.

The total and average yields of oaten-grain and of chaff, hay, or ensilage for the five seasons ending with 1948–49 were as follows:—

Season.Grain.Chaff, Hay, or Ensilage.
Total Yield.Average per Acre.Total Yield.Average per Acre.
 Bushels.Bushels.Tons.Tons.
1944–454,209,14354.18188,4361.90
1945–462,796,87748.83153,5321.78
1946–472,686,21148.58141,0581.85
1947–482,853,51745.18122,7161.76
1948–493,718,59747.49122,5181.82

Varieties of Oats threshed.—An analysis of the threshing returns relating to the season 1947.48 gave the following percentage distribution of varieties of oats threshed.

Variety of Oats threshed.Average Yield Per Acre.Percentage of Total Area.Percentage of Total Yield.
 Bushels.Per Cent.Per Cent.
White53.4663.3371.31
Dun37.8911.779.40
Black43.703.653.36
Algerian35.6021.2515.93
All varieties47.48100.00100.00

BARLEY.—For many years prior to 1940–41, the area planted in barley did not fluctuate to any marked degree, but the areas sown in 1940–41 and in 1941–42 were substantially above those of previous years, with a consequent increase in grain-production. The areas in the following two years, although still above the average, were well below that of 1941–42, but outstanding increases were recorded in the next four years, the area threshed in 1947–48 (63,398 acres) and the yield of grain (2,087,900 bushels) being the highest yet recorded. In 1948–49 there was a fall of 4,691 acres, but a particularly high yield resulted in a new production record (2,256,362 bushels) being obtained. One of the reasons ascribed to these increased sowings was that, owing to unfavourable weather conditions in certain years, land which had been intended for wheat could not be prepared in time for that crop and such land was then devoted to barley, which could be sown later. The principal reason, however, would appear to be the inability to procure supplies abroad. Prior to 1945, considerable quantities of barley were imported—mainly for use as stock-food, but the quantities imported in recent years have decreased considerably.

Of the total area grown, 83 per cent. was threshed for grain in 1949, the remaining 17 per cent. being used for stock fodder (mostly feeding off).

Malting varieties account for approximately 85 per cent. of the area sown in barley.

POTATOES.—The production of potatoes is usually adequate to meet the home market, but in recent years there have been considerable fluctuations, a surplus in one year being followed by a shortage in another. The problem of the disposal of surplus quantities is rendered difficult by import restrictions on New Zealand potatoes entering Australia, although certain quantities were admitted in 1940 and again in 1950 owing to shortages of supplies in that country. Strangely enough, in each of the years mentioned the area in potatoes in New Zealand was comparatively small, but particularly high yields resulted in surplus quantities being available.

In 1940–41 the acreage devoted to potatoes (16,998 acres) was the lowest recorded since 1892 but an even more unfavourable position obtained in 1941–42. This period coincided with a greatly increased demand in the form of requirements for the Armed Forces, and the Government in entering into contracts with growers, agreed to pay for all potatoes produced under these contracts. In 1942–13 and 1943–44 yields were ample for all requirements, but in 1944–45, although the area planted was 2,596 acres greater than in 1943–44, the yield was less to the extent of 35,825 tons owing to unfavourable weather conditions. Although the area planted in the following three seasons fell well below the 1944–45 figure, a high average yield in each year produced sufficient potatoes to meet all requirements. There was a further fall in acreage in 1948–49, and this, combined with a comparatively low yield, resulted in a fall in production of 45,374 tons as compared with 1947–48. As a result potatoes were in short supply towards the end of the season, and 3,181 tons were imported from Australia.

The contract system was continued after the close of the war, but its application was limited to main-crop potatoes.

The Potato Growing Industry Act, 1950, provides for the establishment of a Potato Hoard of seven members, three of whom are to be representative of the growers on an elective basis, three to be nominated by the New Zealand Grain, Seed, and Produce Merchants' Association, Incorporated, and one to be an officer of the Public Service, who shall act in an advisory capacity.

The principal functions of the Board shall be to ensure that an adequate supply of main-crop potatoes shall be available for consumption in New Zealand, and for that purpose to enter into contracts with growers for the growing of main-crop potatoes. The Act provides that the Board may impose a levy not exceeding 13s. per ton on main-crop potatoes sold by growers, the proceeds of which are to be applied by the Board in payment of charges, &c., for which it may become liable in the exercise of its functions.

Figures for area and yield for the last five years are as follows:—

Year.Area.Total Yield.Yield Per Acre.
 Acres.Tons.Tons.
1944–4529,774125,6874.22
1945–4623,228140,2526.04
1946–4719,276115,7626.01
1947–4821,887155,0187.08
1948–4918,940109,6445.79

The 1948–49 yield was made up of 77,857 tons of table potatoes, 24,573 tons of seed potatoes, and 7,214 tons of pig, &c., potatoes. The corresponding quantities in 1947–48 were 110,918 tons, 31,103 tons, and 12,997 tons.

Since 1936 special statistics of areas and yields of potatoes, classified according to varieties as well as by origin of seed planted (Government certified or otherwise), have been compiled annually. The information is obtained from a special collection from growers in July, by which time the bulk of the crop has been harvested. The inquiry is limited in the main to growers of 2 acres and over, but the resultant details which cover approximately 55 per cent. of the total potato acreage can be taken as fully representative of the crop as a whole. “Government certified” seed is that for which a Government certificate has been issued in respect of purity, &c. Seed obtained from the ensuing crop cannot be so designated unless the requisite certificate is issued by the authorities. The following table gives particulars of this special collection for each of the last five years. Similar information for individual varieties is published in the Annual Statistical Report on Agricultural and Pastoral Production.

Year.Government Certified.Uncertified.Not Stated.Totals.
Area.Total Yield.Yield Per Acre.Area.Total Yield.Yield Per Acre.Area.Total Yield.Yield Per Acre.Area.Total Yield.Yield Per Acre.
 AcresTons.Tons.AcresTons.Tons.AcresTons.Tons.AcresTons.Tons.
1944–454,12924,6285.968,00237,6674.718984,4854.9913,02966,7805.13
1945–464,56130,9456.786,63036,5915.526863,8105.5511,87771,3466.01
1946–475,67539,4216.954,82826,9055.579905,7525.8111,49372,0786.27
1947–485,90247,8158.105,40637,2886.903392,2246.6511,64787.277.50
1948–495,45935,6966.544,78326,4235.526263,9576.3210,86866,0766.08

The table plainly indicates the superior yielding-capacity of certified seed. The average yield per acre over the five years for certified seed was 6.94 tons, as compared with 5.56 tons for uncertified seed. The advantage of 1.38 tons per acre in favour of crops from certified seed represents a yield-superiority of nearly 25 per cent. It is also of interest to note the increasing use of certified seed. Of the areas for which the information was supplied in 1938–39 the proportion of certified seed used was 35.5 per cent., as compared with 53.3 per cent. in 1948–49.

ONIONS.—Areas in and yields of onions for the last five years are as follows:—

Year.Area.Total Yield.Yield Per Acre.
 Acres.Tons.Tons.
1944–451,91517,8869.34
1945–461,38711,9968.65
1946–471,20211,0199.17
1947–481,57213,5858.64
1948–491,17510,6749.08

In earlier years the production of onions was rarely sufficient to supply domestic requirements. As onions are a semi-perishable commodity it was found convenient to export in the flush of the New Zealand season, and to obtain supplies from overseas later in the year. However, a considerable improvement has been effected in the keeping qualities of the varieties grown, and no onions were imported into New Zealand during the five calendar years ended 1949. The large area planted in 1944–45 was mainly due to the requirements of the Armed Forces, not only in New Zealand but in the Pacific area.

SUPPLEMENTARY FODDER CROPS.—Although grass is the main crop of the farmer in New Zealand, at certain periods during the year the pastures need supplementing in order that the grassland may not become unduly exhausted, and also in order to maintain stock in a satisfactory condition. In mid-winter the grass is at a low stage of productivity generally, while under dry summer conditions it loses part of its nutritive value. During these periods, it is necessary that some extra feed should be provided, and this is usually done either by cutting the grass for hay or ensilage when there is an ample surplus on the pastures during the flush of the growing season, or by the provision of green fodder or root crops.

The following table gives detailed figures of the areas of the supplementary fodder crops available during each of the last five years.

Year.Chaff, Hay, or Ensilage.Green Fodder.Root, and Other Crops for Feeding to Stock.Total Area of Fodder Crops.
Cereal Crops.Grasses and Clovers, including Lucerne.Cereal Crops.Other Crops.
 Acres.Acres.Acres.Acres.Acres.Acres.
1944–45101,337601,10966,566244,930401,5401,415,482
1945–4687,779483,50954,622,242868387,6821,256,460
1946–4778,099582,65866,909244,871396,5571,369,094
1947–4871,241606,25960,375247,025405,6661,390,566
1948–4969,098648,60867,358262,252389,3531,436,669

In 1948–49 grasses and clovers cut for hay or ensilage totalled 601,384 acres and lucerne 47,224 acres. Oats was the only cereal crop utilized in any quantity for this purpose, the area of oats cut for chaff, hay, or ensilage being 67,492 acres. Oats, also, was the principal cereal crop fed off to stock, accounting for 49,058 acres out of a total of 67,358 acres utilized for this purpose. The principal green-fodder crops apart from oats are rape (163,829 acres) and kale, including chou moellier, (87,199 acres). Swedes and turnips are the principal root crops grown in New Zealand, the total area sown in these crops in 1948–49 being 384,125 acres (including 31,994 acres of turnips and rape mixed). Other root crops included 3,066 acres of mangolds and 404 acres of carrots and parsnips. Pumpkins and marrows were grown for fodder to the extent of 1,019 acres.

The total and per-acre yields obtained from the various crops cut for chaff, hay, or ensilage during the 1947–48 and 1948–49 seasons are shown in the next table. In the cases of grasses and clovers cut for hay or ensilage, second or catch crops are taken into account in the yield figures, the total yield including crops from areas which had previously yielded some other crop in the season concerned. These areas are not counted twice in the statistics of acreage, and average yields cannot be obtained by the mere division of the total yield by the area figures.

Crop.1947–48.1948–49.
Total Yield.Yield Per Acre.Total Yield.Yield Per Acre.
 Tons.Tons.Tons.Tons.
Wheat1,7232.131,8522.13
Oats122,7161.76122,5181.82
Barley1,3401.951,1401.70
Maize3873.422844.24
Grasses and clovers for hay992,156131,077,1982.02
Grasses and clovers for ensilage189,0564.05283,1274.17
Lucerne112,1522.42110,9372.35

GRASS-SEED.—The total area of grasses and clovers cut for seed during the 1948–49 season was 160,057 acres, yielding 1,913,743 bushels of 20 lb., as against 1,674,208 bushels from 142,206 acres in 1947–48. Canterbury, Otago, and Southland land districts between them provided 85 per cent. of the area cut.

The areas and yields of grass and clover crops harvested for seed, distinguishing the principal varieties, during each of the live years 1944–45 to 1948–49 are given in the table following.

Crop.1944–45.1945–46.1946–47.1947–48.1948–49.
AREAS
Rye-grass—Acres.Acres.Acres.Acres.Acres.
  Perennial47,28758,34571,83344,78351,226
  Italian17,54721,01321,1314,4184,095
  Short-rotation (H1)9721,1935,3876,0218,629
Cocksfoot15,47518,94111,4826,6726,680
Chewings fescue15,18117,16117,66316,53719,436
Crested dogstail10,5129,60911,9074,9137,913
Red clover (including cow-grass)32,68034,56739,68121,43521,299
White clover23,59643,45147,95425,40927,303
Other grasses and clovers18,36421,55127,23012,01813,476
YIELDS
Rye-grass—lb.lb.lb.lb.lb.
  Perennial13,789,98320,642,06130,672,77816,784,43617,159,333
  Italian7,783,56310,157,17810,444,1011,838,9031,818,747
  Short-rotation (H1)72,332539,0892,665,0722,261,2323,015,314
Cocksfoot2,171,6393,107,2181,726,3311,051,1831,193,364
Chewings fescue2,869,3962,957,7053,375,6792,617,5685,264,611
Crested dogstail1,307,6881,759,3322,735,8981,182,8031,770,377
Red clover (including cow-grass)2,357,7083,784,1763,772,5553,540,7643,569,818
White clover1,894,1425,336,4815,932,1333,461,2843,544,789
Other grasses and clovers711,7771,746,0841,638,250745,981938,513

A considerable export of grass-seed has been built up during recent years, especially with the United Kingdom, Australia, and the United States of America. In 1947 a considerable quantity of grass-seed was exported to various continental countries, notably Belgium. The total quantity of locally-produced grass and clover seed exported to all countries in 1949 amounted to 161,992 cwt., with a recorded value of £1,523,426.

PASTURE GRASSES.—Researches and experiments in regard to pasture grasses are regular features of the activities of both the Department of Agriculture and the Department of Scientific and Industrial Research. These experiments, which extend right on to individual farms throughout New Zealand, and are conducted in co-operation with the farmers themselves, are wide in their application, and cover all the major phases of pasture management, dealing in particular with such items as pasture mixtures, suitability as to soil types, methods of establishment and management, the efficient use of fertilizers, &c. The results are made available per medium of the Journal of Agriculture and such allied publications, as well as by special pamphlets which are distributed without charge. The farmer is thus enabled to avail himself of, and profit by, highly specialized knowledge and experience. In addition, a constant endeavour is being made not only to improve existing strains by such measures as seed certification and the provision of pedigree seed referred to on page 347, but also to evolve new strains. At the beginning of the year 1949 there were 18,088,777 acres under artificially sown grasses (including 808,665 acres cut for seed, hay, or ensilage during the season), and in addition 13,543,915 acres of occupied land still remained in tussock or naturally established native grasses, making a total of 31,632,692 acres of grassland in occupation. The following table shows the respective areas occupied by artificially sown grasses and by tussock and other naturally established native grasses during the five years specified.

Year.Artificially Sown Pasture Grasses.*Tussock and other Naturally Established Native Grasses.Total Area under Grass.*
Cut for Seed, Hay, or Ensilage.Not Cut for Seed, Hay, or Ensilage.

* Includes lucerne.

† Includes approximately 200,000 acres also sown with crops.

‡ Approximate.

 Acres.Acres.Acres.Acres.
1944–45781,65116,857,16913,850,00031,500,000
1945–46708,14717,246,86713,968,33031,923,344
1946–47836,92617,239,83113,827,11131,903,868
1947–48748,46517,342,57313,647,37931,738,417
1948–49808,66517,280,11213,543,91531,632,692

TOP-DRESSING (PASTURE LANDS).—The following figures, covering the year 1948–49, relate only to grassland top-dressed, fertilizers used in connection with field crops not being included.

Nature of Top-dressing.North Island.South Island.New Zealand.
 Acres.Acres.Acres.
Artificial fertilizers only2,697,776284,1232,981,899
Lime only190,163394,264584,427
Both artificial fertilizers and lime1,075,332420,7541,496,086
    Totals3,963,2711,099,1415,062,412

Top-dressing in New Zealand is carried out mainly on cattle-grazing areas, including, of course, dairy-farms; the North Island, which contains 86 per cent. of the total cattle, accounted in 1948–49 for 78 per cent. of the area top-dressed.

The following table shows particulars of areas of grassland top-dressed during the last five years.

Year.Area Top-dressed.
With Artificial Fertilizer only.With Lime only.With both Artificial Fertilizer and Lime.Total Area Top-dressed.
 Acres.Acres.Acres.Acres.
1944–451,602,887726,4671,317,0373,646,391
1945–461,757,762606,7441,288,7433,653,249
1946–472,237,300566,0181,456,6764,259,994
1947–482,654,421548,4611,481,3434,684,225
1948–492,981,899584,4271,496,0865,062,412

In the decade prior to 1941–42 top-dressing had been rapidly expanding throughout New Zealand, culminating in the high figure of 4,649,317 acres top-dressed in 1940–41. Subsequent decreases were mainly attributable to the cessation of supplies of rock phosphate from Nauru and Ocean Islands as a direct consequence of military operations in the Pacific. In the three years ended 30th June, 1940, the quantity of phosphate shipped to New Zealand from this source totalled approximately 987,000 tons, and the severance of the supply created a serious problem loading to a system of rationing.

Supplies of artificial fertilizer have been coming to hand in increasing quantities and the area top-dressed with artificial fertilizer in 1948–49, including cases where lime also was used, was 4,477,985 acres, a figure which actually exceeded the record area so treated in 1940–41 (4,398,345 acres). A noticeable feature has been the increased use of lime during the period that phosphatic fertilizers were in such short supply.

The activities of the Department of Agriculture and the Department of Scientific and Industrial Research in the treatment of experimental plots from the various aspects of soil and crop requirements, and the subsequent data published thereon, have been an important factor in conveying to the farmer the many advantages to be derived from the scientific treatment of pastures.

GARDENS AND PLANTATIONS.—The figures for market gardens, plantations, &c., for the last five years are shown below. State gardens and plantations are covered-by these figures. It should be noted that the statistics relate only to holdings of 1 acre or upwards outside boroughs.

Year.Market Gardens.Nurseries.Private Gardens, &c.Plantations.

* Approximate.

 Acres.Acres.Acres.Acres.
1944–4516,82692383,000*867,450
1945–4613,16198275,022861,008
1946–4713,0291,12778,933869,959
1947–4813,5801,11880,518871,356
1948–4913,4361,24983,822884,077

Market Gardens.—The mobilization of large numbers of troops for home-defence purposes early in 1942, the presence of considerable numbers of Allied servicemen in New Zealand, and the demand for vegetables for members of the Allied Forces in the South Pacific, resulted in a considerable expansion in vegetable-production during the 1942–43 season followed by further increases in 1943–44 and 1944–45.

With the passing of this special demand for vegetables, the area in market gardens fell from 16,826 acres in 1944–45 to 13,161 acres in 1945–46, but there was little change during the next three years. Compared with the pre-war year 1938–39, however, the area in 1948–49 showed an increase of 5,630 acres, or 72 per cent.

The Commercial Gardens Registration Act, which came into force on the 1st May. 1943, provides for the compulsory registration of all areas of ½ acre or over of certain specified vegetables for sale for human consumption. The following vegetables are covered by the Act: Asparagus, bean, beetroot, Brussel sprouts, cabbage, carrot, cauliflower (including broccoli), celery, cucumber, leek, lettuce, marrow, melon, parsnip, pea, pumpkin, radish, rhubarb, silver beet, spinach, squash, sweet corn, tomato. The annual report of the Department of Agriculture for the year ended 31st March, 1949, states that the total area of commercial gardens registered under the -Vet was 18,388 acres at 30th September, 1949, the number of growers being 3,207. The difference between this area and the corresponding figure in the preceding table would be largely accounted for by the fact that areas within borough boundaries are included in the registration figures.

Nurseries.—Owners of nurseries who were raising for sale ornamental shrubs, rose-trees, forest trees, fruit trees and plants, and tomato-plants were required in 1949 to have their nurseries registered before being permitted to sell plants. The number of nurseries so registered in 1949–50 was 858, including 355 tomato nurseries.

ORCHARDS AND THE FRUIT INDUSTRY.—A great impetus to the planting of fruit-trees was given by the discovery that tracts of land, principally in the Nelson land district, which formerly were regarded as being practically useless, were eminently suited for growing fruit, particularly apples. For a time, considerable areas of this and other land were annually added to New Zealand's orchards, but the acreage then declined until it became stabilized in the neighbourhood of 25,000 acres. However, a further decline set in after 1935–36, the 1948–49 figure of 18,667 acres showing a decrease of 6,405 acres as compared with the 1935–36 total of 25,072 acres. These figures refer to orchards of ¼ acre or over on holdings of 1 acre or more situated outside borough boundaries.

The following table shows the area outside borough boundaries which has been returned as under fruit-trees at each of the last eleven annual enumerations.

Year.Acres
1938–3921,753
1939–4020,899
1940–4120,064
1941–4219,544
1942–4319,190
1943–4419,196
1944–4519,614
1945–4618,235
1946–4718,253
1947–4818,667
1948–4918,667

The production of apples predominates, this crop accounting for over half the total area in orchards. The percentages (estimated) of areas under production of the principal kinds of fruit under cultivation are as follows: Apples, 55.8; pears, 6.1; stone-fruits, 26.8; lemons, 4.7; other citrus, 5.6; other tree fruits, 1.0.

The Orchard-tax Act, 1927 (amended in 1933 and 1934), continuing legislation dating from 1916, provides for the levying in each year of a tax of 2s. per acre on commercial orchards, with a minimum tax of 5s. Of the proceeds, £850 is paid over to the New Zealand Fruitgrowers' Federation, and the balance credited to the vote of the Department of Scientific and Industrial Research for use as required in assisting the industry. Authority also exists for the imposition of a special orchard-tax in the case of apple, pear, and quince orchards in commercial fruitgrowing districts for the purpose of combating fireblight. Imposition is discretionary, however, on the part of fireblight committees elected by the fruit-growers in the various districts. While the tax may not exceed 5s. per acre, or part of an acre, the specific amount (within the above limits) is at the discretion of the committees, and is collected at their request by the Department of Agriculture. Neither tax is payable in respect of any orchard with fewer than 120 fruit-trees.

Commercial orchards registered at 31st March, 1949, numbered 3,893, of which 2,038 were taxable and 1,855 non-taxable.

The latest figures available show that the relative sizes of taxable orchards in New Zealand were:—

Acres.Number.
1 to 5947
6 to 10503
11 to 15239
16 to 20116
21 to 2541
26 to 5057
Over 508

The number of trees in commercial orchards—i.e., orchards with 120 trees or more—at 31st March, 1950, according to the principal varieties was as follows: apple, 1,070,000; pear, 129,000; quince, 19,000; peach, 304,500; nectarine, 30,500; apricot, 106,000; plum, 142,000; cherry, 25,500; lemon, 49,000; orange, 28,500; grapefruit, 47,500; mandarin, 500.

The areas in berry fruits at 31st March, 1950, were as follows: strawberry, 305 acres; raspberry, 868 acres; gooseberry, 146 acres; black currant, 191 acres; boysenberry, 32 acres; loganberry, 21 acres; cape gooseberry, 51 acres.

The growing of outdoor grapes is chiefly confined to the districts situated between the North Cape and Hawke's Bay, the total area returned in vineyards in 1949 being 994 acres. The greater portion of the crop is used for winemaking, several wines of excellent quality being manufactured.

Marketing of Apples and Pears.—Upon the outbreak of war in 1939, by agreement with the New Zealand Fruitgrowers' Federation, the Marketing Department assumed the functions of the Fruit-export Control Board established under the Fruit Control Act, 1924. The Board retired from active participation, but remained as an advisory committee. The growers were given a fixed return for their fruit, the Government undertaking to sell the whole crop within New Zealand and to bear any losses consequent upon such policy. This action was taken owing to the loss of export markets consequent upon lack of shipping-space on account of war conditions. The Apple and Pear Marketing Act, 1948, and its amendment of 1950, established the New Zealand Apple and Pear Marketing Board consisting of five members, two of whom are nominated by the New Zealand Fruitgrowers' Federation. The principal functions of the Board are the purchase and sale of apples and pears and matters incidental thereto including export arrangements. The Board does not employ staff except for secretarial and investigational duties, the physical functions of assembly, distribution, and marketing, being carried out by the Marketing Department as agent for the Board.

The Act provides that before 31st March in each season the Minister of Marketing, after consultation with the Hoard, shall declare an average price to be paid to growers for apples and pears grown during that season. This price is based on the standard cost of production. Thus the total amount paid by the Board for fruit purchased by it from growers in any season is the average price multiplied by the total quantity of fruit purchased. The actual prices paid by the Board to individual growers is fixed by the Board having regard to varieties, grades, quality, &c., of the fruit supplied.

If in any season the total receipts from sales of fruit by the Board exceed the amount which the Board is required to pay to growers in accordance with the declared average price, the surplus, after deduction of costs and expenses incurred by the Board, is retained as a reserve fund. If sales in any season realize less than the amount the Board is required to pay, the deficiency is met from the reserve fund.

All apples and pears are not purchased by the Board, the Act making provision for private sales by growers in accordance with regulations issued thereunder.

During the 1948–49 season the apple and pear crops were disposed of as follows, the figures being quoted in bushels:—

Marketing Department receipts—Apples.Pears.
Export547,253 
  Local markets1,407,601291,287
  Private sales312,10567,035
Sold to canning factories136,18414,687
Sold for pulping, cider, &c.46,152200
    Totals2,449,295373,209

HOPS.—According to returns covering holdings of 1 acre or over outside boroughs there were 614 acres under hop-vines in the season 1948–49. In addition, there are certain areas in boroughs, and the annual report of the Department of Agriculture states that the gross area at the 1949 harvest was 750 acres.

Practically the whole of the hop gardens are located in Waimea County. Production per acre usually ranges between 1,200 lb. and 1,500 lb., and the aggregate crop is usually sufficient to satisfy local requirements as well as to provide a surplus for export. However, the industry received a severe setback in the 1946 season as the result of the incidence of black-root disease, which was responsible for a particularly low yield. Production in the 1948–49 season was 767,466 lb., compared with 986,835 lb. in the previous year. Growing conditions were less favourable, low rainfall and drying winds prevailing for several weeks before the harvest.

TOBACCO.—Although the cultivation of tobacco-loaf on a commercial basis was initiated comparatively recently, the industry has made marked progress and growers are becoming increasingly familiar with the methods and plant required for the production of cured leaf acceptable to manufacturers. Production has risen from 1,197,161 lb. in 1935–36 to 5,000,470 lb. in 1948–49, an increase of approximately 318 per cent. Commercial tobacco-growing is confined to those to whom licences are issued by the Tobacco Board established under the Tobacco-growing Industry Act, 1935, to control the industry. Most of the tobacco produced is flue-cured, producing a yellow-leaf tobacco which is largely used for the manufacture of cigarettes, the balance, air-cured, being used mainly in the manufacture of smoking mixtures and pipe tobacco.

The following particulars relating to tobacco-production have been taken from the annual report of the New Zealand Tobacco Board. It should be noted that the figures relate to the total commercial tobacco-production and not merely to holdings of 1 acre or over situated outside borough boundaries, as is the ease with most of the statistics contained in this section.

Season.Number of Growers.Area Planted.Production.
  Acres.lb.
1944–454873,3033,286,067
1945–465533,4054,080,135
1946–476283,8054,706,723
1947–486614,3224,770,827
1948–496194,3935,000,470

The production figures represent the weight of the leaf purchased from growers before redrying. Flue-cured leaf accounted for 96.5 per cent. and air-dried leaf for 3.5 per cent. of the 1948–49 crop.

PHORMIUM.—Large areas in various parts of New Zealand are covered with phormium, or New Zealand flax, the fibre of which is largely used for rope-making, &c. An area of 36,640 acres was returned as under phormium on occupied holdings in 1948–49.

LINEN FLAX.—As a result of the exigencies of war, an entirely new industry was inaugurated in New Zealand—the growing of linen flax. Linen fibre is extensively used commercially, but assumed special importance as an essential war commodity. As the United Kingdom had previously imported 90 per cent. of her requirements, mainly from Russia, attention was of necessity paid to the possibility of obtaining supplies elsewhere.

Investigations into the growing of linen flax in New Zealand were first instituted in 1936, and much valuable research work was carried out by the Department of Scientific and Industrial Research in collaboration with the Department of Agriculture. These investigations demonstrated the possibility of the establishment of the industry in New Zealand, and led to an officer being sent abroad to study the industry at first hand and to purchase the necessary processing machinery for an experimental factory.

Though 403 acres of linen flax were grown in 1939–40, the industry was not established on a commercial basis till the 1940–41 season, when 13,118 acres were grown under contract to the Crown in response to a request received from the British Ministry of Supply that New Zealand should grow 15,000 acres. A request that sowings be further extended resulted in 20,200 acres being grown in 1941–42, followed by 21,067 acres in 1942–43. Owing to casement of the position and as a result of discussions with the British Ministry of Supply, it was decided to curtail the acreage in 1943–44, with the result that the area dropped to 9,755 acres. However, the area rose again to 12,686 acres in 1944–45.

With the cessation of hostilities the immediate necessity for linen-flax products for specific war requirements no longer became a vital factor and the demand naturally lessened; consequently the area grown in 1945–46 fell sharply, only 4,590 acres being grown. This fell further to 4,070 acres in 1946–47, but slight increases were recorded in the next two years, to 4,554 acres in 1947–48 and 4,717 acres in 1948–49. A corporation was formed under the Linen Flax Corporation Act, 1945, to organize and develop the industry, to carry on the business of producing linen-flax products, and to market any such products in New Zealand or overseas. The Act transferred to the Corporation all assets and liabilities held by the Crown for linen-flax purposes, and prohibits the incorporation of any other body for similar purposes.

SEED CERTIFICATION.—Commencing with the certification of seed potatoes and seed wheat in 1928, the Department of Agriculture has extended its activities in this direction to include such crops as perennial rye-grass, Italian rye-grass, Short-rotation (H1) rye-grass, cocksfoot, timothy, brown-top, Phalaris tuberosa, white clover, cow-grass (broad red clover), Montgomery red clover, subterranean clover, oats, barley, sweet blue lupins, onions, chou moellier, rape, kale, turnip, and swede seeds.

The scheme was introduced to provide the buyer of certified seeds with a guarantee that the produce of such seeds would be true to type and free from seed-borne diseases.

In the early stages of the scheme, certification, which has relationship only to the type of the plant and not to the purity or germination of the seed itself, was based on the identification of superior strains of seeds appearing in certain districts as a result of natural selection. At the same time, however, a programme of scientific plant selection was instituted by the Department of Scientific and Industrial Research in an endeavour to improve still further the naturally occurring strains. The results of this selection work now form the basis of seed certification as applied to most of the above-mentioned types.

The task of raising seed of artificially selected strains involves in the first instance the testing of a large number of individual plants of the particular species. Only the plants giving the best performance under trial are resown for further multiplication, possibly half a dozen out of thousands.

These plants are then seeded together to produce small quantities of seed of the selected strain. This seed, in turn, is multiplied until sufficient is available to sow areas on a field scale. At this stage the Department of Agriculture takes over the material available and multiplies the seed under contract with selected farmers.

The resultant seed is distributed by the Department, sales being made through the mercantile firms to those farmers most favourably situated to make the best use of it for further seed-production. From this stage the selected strain is multiplied under the Department's certification scheme through the stages of certified “Pedigree” seed and certified “Mother” seed to certified “Standard” or “Permanent Pasture” seed. These seeds are sold through the usual commercial channels.

While in the lower classes of some varieties of certified seed at the present time there may be included also seed from natural strains, the proportion of the latter is being steadily reduced. The purpose of the various classes is to obtain the greatest bulk of good-quality seed in the “Standard” or “Permanent Pasture” class in the shortest time. Thus, while the higher grades are important to seed producers, farmers sowing for pasture purposes only, need not concern themselves with other than certified “Standard” or “Permanent Pasture” seed.

18 C—PASTORAL PRODUCTION

SUMMARY OF LIVE-STOCK.—The numbers of live-stock of various kinds at each of the last five annual enumerations were as shown in the following table. Detailed statistics of live-stock, by counties and land districts, are contained in the Statistical Report on Agricultural and Pastoral Production issued annually by the Census and Statistics Department. This publication also contains the summary tables appearing in parliamentary paper H.–25, which is devoted exclusively to a statistical analysis of the annual sheep returns. These returns were not collected in 1946. It should be noted that, unless otherwise stated, the statistics quoted in the tables in this subsection relate to holdings of 1 acre or upwards situated outside borough boundaries.

1945.1946.1947.1948.1949.

* Includes those in boroughs and on holdings under 1 acre.

† Not available.

Horses217,689216,335206,575203,885196,055
Dairy-cows in milk1,678,9431,661,9441,657,6901,713,5321,746,753
Cattle (including dairy cows)4,590,9264,666,7824,633,8004,716,2874,722,836
Sheep shorn during season30,284,67730,475,74030,214,77230,075,21330,277,551
Lambs shorn during season5,245,1915,335,0504,929,2635,697,4555,624,895
Lambs tailed during season19,453,30619,561,45818,642,29819,835,04619,805,885
Sheep (including lambs) as at 30th April*33,974,61232,681,79932,483,13832,844,918
Breeding-ewes as at 30th April*20,865,85820,743,78221,055,48221,499,703
Pigs (total)593,828549,391545,874548,177544,841
Breeding-sows77,20272,57367,93868,35468,305

In the following tables the figures of live-stock are given for each land district. Horses, dairy cows in milk, total cattle, sows, and total pigs are as at 31st January, 1949. Sheep shorn, lambs shorn, and lambs tailed are for the season 1947–48, while breeding-ewes and total sheep are as at 30th April, 1949.

Land District.Horses.Dairy Cows in Milk.Total Cattle.Breeding-sows.Total Pigs.
North Auckland26,515386,977814,59015,668125,115
South Auckland40,263618,0521,275,09526,508210,682
Gisborne12,88240,492356,9322,08715,904
Hawke's Bay13,60350,249380,6031,75713,827
Taranaki12,474226,767411,8976,17352,549
Wellington27,427216,489807,7598,64664,920
Marlborough3,55513,39154,8516454,9.71
Nelson3,56832,40076,1861,67014,726
Westland1,45013,12850,5266616,089
Canterbury23,47263,515206,8353,02523,479
Otago16,60135,611127,6718266,978
Southland14,24549,682159,8916395,661
    Totals196,0551,746,7534,722,83668,305544,841
Land District.Sheep shorn.Lambs shorn.Lambs tailed.Breeding-ewes.*Total Sheep.*

* Includes those in boroughs and on holdings under 1 acre.

North Auckland1,155,050351,736693,584782,9091,213,376
South Auckland3,091,150862,9712,121,5212,298,0113,307,031
Gisborne2,027,392759,9001,018,3761,234,9742,102,240
Hawke's Bay4,017,802979,0092,500,3792,845,0124,244,193
Taranaki906,267267,136579,669606,058940,360
Wellington6,415,0651,937,1843,953,8824,304,6556,792,868
Marlborough957,18387,840484,674604,6811,046,390
Nelson384,91922,899189,603247,895424,551
Westland65,7376,38159,19757,39073,454
Canterbury4,693,777240,8473,457,8243,580,7125,219,629
Otago3,477,97863,3702,189,5482,421,0093,946,813
Southland3,085,23145,6222,557,6282,516,3973,534,013
    Totals30,277,5515,624,89519,805,88521,499,70332,844,918

SHEEP.—Although the first permanent establishment of sheep took place in 1834, when a small flock of Merinos was brought from Sydney and landed on Mana Island, it was not till the early 1840's that flocks were established in the Canterbury and Wellington districts. Other districts followed soon after. These original flocks were Merinos, but experience showed that this breed was not suited to the wetter parts of the North Island. In many districts in the South Island, however, they became firmly established in the high country, where the Merino or Merino crossbred are the only sheep capable of standing up to the conditions occasioned by extremes of climate. In the following two decades a number of English breeds were imported, notably Romneys, Southdowns, Lincolns, and English and Border Leicesters. The Merino ewe furnished the foundation of the crossbred stock, which made Canterbury meat and lamb famous on the British meat markets. Towards the end of the last century systematic inbreeding of Merino-longwool half-bred sheep resulted in the evolution of the now world-known Corriedale breed. The Romney Marsh has long been the most popular sheep, and accounts for 58 per cent. In the North Island this breed accounts for no less than 92 per cent. of flock sheep other than crossbreds, and in the South Island for 19 per cent. of the total flock sheep other than crossbreds.

Owing to staffing and other difficulties arising out of the war, the annual collection of sheep returns was not carried out in 1942 or 1943. The collection was resumed in 1944, and the numbers enumerated as at 30th April of that year constituted a new high figure for New Zealand, being 821,524 above the previous record established in 1938. This was superseded by the 1945 figure of 33,974,612, which represented a further increase of 774,314. The collection of returns was suspended in 1946 owing primarily to printing difficulties but was again resumed in 1947. The number of sheep recorded as at 30th April, 1947, 32,681,799, showed a decrease of 1,292,813 as compared with the 1945 figure. This was attributed largely to heavy killings consequent on severe drought conditions prevailing in the summer and autumn of 1946. The 1948 figure of 32,483,138 showed a further decrease of 198,661. However, the number of breeding-ewes in 1948 rose by 311,700, and indicated that the fall in the total number of sheep was merely the temporary result of an increased killing programme in 1947–48. This was borne out by the results of the 1949 collection, the total number of sheep at 30th April of that year being 32,844,918, an increase of 361,780 as compared with 1948, and only 129,694 below the record figure of 1945. A further increase of 444,221 in the number of breeding-ewes in 1949 would appear to indicate that a further rise in the sheep population may be expected.

In the following table showing sheep distribution by Islands, the Chatham Islands are included in the South Island, as they form portion of the Canterbury-Kaikoura Sheep District. The figures include sheep in boroughs and on holdings under 1 acre.

Year.North Island.South Island.Total Sheep at 30th April.
193616,371,84413,741,86030,113,704
193717,065,13514,240,68331,305,818
193817,705,99914,672,77532,378,774
193917,509,22214,387,86931,897,091
194017,075,05613,987,81931,062,875
194117,862,33013,889,33031,751,660
194418,899,65614,300,64233,200,298
194519,108,73314,865,87933,974,612
194718,123,77314,558,02632,681,799
194818,388,44614,094,69232,483,138
194918,600,06814,244,85032,844,918

The following table shows the number of rams, wethers, breeding-ewes, dry owes, and lambs in New Zealand for the last five years for which figures are available.

Year.Rams.Wethers.Breeding-ewes.Dry Ewes.Lambs.Totals.
Stud Sheep (entered in Flock-book)
194413,524 301,2836,667217,340538,814
194513,436 309,4476,230223,491552,604
194713,361 316,2037,250234,254571,068
194812,380 314,1456,092237,892570,509
194912,576 323,7046,966239,379582,625
Sheep of a Distinctive Breed but not entered in Flock-book
1944526,3971,121,5875,966,993328,4742,306,62910,250,080
1945542,0631,035,7635,753,230265,6332,331,5159,928,204
1947554,1581,095,2756,044,814282,1472,180,88110,157,275
1948549,463903,1735,420,298212,5932,140,8519,226,378
1949559,009953,7465,818,439211,1612,134,2639,676,618
Crossbred Sheep
19444,0621,484,51814,281,440758,1515,883,23322,411,404
19454,1701,490,02514,803,181646,2826,550,14623,493,804
19475,3601,396,79114,382,765641,4185,527,12221,953,456
19489,6341,345,68815,321,039441,9095,567,98122,686,251
194911,3371,521,66715,357,560417,1155,277,99622,585,675
Totals
1944543,9832,606,10520,549,7161,093,2928,407,20233,200,298
1945559,6692,525,78820,865,858918,1459,105,15233,974,612
1947572,8792,492,06620,743,782930,8157,942,25732,681,799
1948571,4772,248,86121,055,482660,5947,946,72432,483,138
1949582,9222,475,41321,499,703635,2427,651,63832,844,918

The average size of the flocks was 979 in 1941, 1,007 in 1944, 1,039 in 1945, 997 in 1947, 975 in 1948, and 983 in 1949. The subdivision of the large estates of the pioneering days and the practice of running small flocks on dairy-farms, a typical feature of recent activities, has resulted in a decrease in the average size of flocks as compared with earlier days. Since the beginning of the present century, however, there has been little variation, although an upward tendency was evident between 1939 and 1945, due no doubt to the decrease in dairy stock during the war period. A classification according to size shows the following position.

Size of Flocks.1944.1945.1947.1948.1949.
1 to 2007,3506,8517,1977,2087,133
201 to 5007,4727,1097,0117,3307,181
501 to 1,0007,7727,8718,0298,1768,200
1,001 to 2,5007,6708,0608,0878,1618,429
2,501 to 5,0002,0022,0641,9101,8391,869
5,001 to 7,500417440407365387
7,501 to 10,000154152124121119
10,001 to 20,0001211209710894
20,001 and over151615911
    Total flocks32,97332,68332,87733,31733,423

The numbers of different classes comprising the flocks in April, 1949, were as follows:—

Breed or Sheep.Stud Sheep entered In Flock-book.Sheep of a Distinctive Breed not entered in Flock-book.Totals.
Merino24,859739,682764,541
Lincoln2,9852,4665,451
Romney282,6685,704,3685,987,036
Border Leicester14,06418,93132,995
English Leicester4,0504,0628,112
Shropshire5381,1321,670
Southdown195,603307,114502,717
Corriedale42,272970,3811,012,653
Ryeland5,8106,07611,886
Half-bred4,9121,915,1021,920,014
Dorset Horn1,0812,0743,155
Cheviot2,7653,4076,172
Suffolk8701,7182,588
Other breeds148105253
Crossbred rams 11,33711,337
    Totals582,6259,687,95510,270,580
Flock sheep: Crossbreds and others not otherwise enumerated  22,574,338
    Grand total582,6259,687,95532,844,918

WOOL-PRODUCTION.—Although sixth in order in actual size of flocks in 1948–49, in point of production of wool New Zealand was the third largest in the world and ranked second in the list of principal exporting countries. New Zealand specializes in the production and export of crossbred wool, and in this field her only serious competitors are Argentina and Uruguay. With the exception of a small annual consumption by local mills the whole of the wool produced in New Zealand is exported. The quantity on a greasy basis used by local mills prior to the war was from 7,000,000 lb. to 8,000,000 lb. per annum, but this was greatly increased during the war period, consumption in 1942–43 being 15,300,000 lb. and in 1943–44, 17,200,000 lb. By 1946–47, however, it had fallen to 13,400,000 lb. and has remained at a reasonably stable figure since, being 13,800,000 lb. in 1947–48 and 13,100,000 lb. in 1948–49.

The following are the figures of estimated production in each of the last eleven. Reasons.

Year ended 30th June,Estimated Production.
 lb.
1940310,000,000
1941331,500,000
1942345,000,000
1943340,000,000
1944330,000,000
1946372,000,000
1946365,000,000
1947367,000,000
1948362,000,000
1949367,000,000
1950390,000,000

The above estimates have been obtained by a consideration of all available statistical information, and have been computed on a greasy basis.

The Wool Industry Act, 1944, which came into operation on 11th January, 1945, provides for the establishment of the New Zealand Wool Board of ten members, this Board replacing the New Zealand Wool Council established under the Wool Industry Promotion Act, 1936, which the present Act repealed. The Board's principal concern: is the promotion of the wool industry, particularly in regard to markets, scientific and industrial research in relation to wool and sheep with a view to improvement in-quality and quantity, and the discovery of new or improved methods of utilization. Specific matters in relation to which the Board may be called upon to exercise certain functions are the production, handling, pooling, appraising, storage, distribution, marketing, and disposal of wool. The Board is empowered to act in combination or association with other bodies established outside New Zealand functioning on similar lines. It is also represented on the Wool Disposal Commission. For the purpose of providing funds to enable the Board to carry out its functions, the Act provides for a levy on all wool produced in New Zealand, the rate of the levy to be fixed each season by the Board. At the present time, however, the provisions in regard to the payment of the levy are suspended, but an equivalent amount is received by the Board from the contributory charge imposed by the Wool Disposal Act, 1945 (see page 320).

CATTLE.—The total number of cattle recorded at the enumeration of 1949 was 4,722,836, as against 4,716,287 in 1948. The figures for 1948 and 1949 grouped according to the classification in use, were as follows:—

Dairy stock—1948.1949.
  Breeding-bulls, two years old and over57,46457,527
  Cows and heifers, two years old and over—  
    Cows in milk during season1,713,5321,746,753
    Heifers not yet in milk68,07162,918
    Cows not in milk during season, but intended to be used again for dairying40,51643,080
  Heifers—  
    One and under two years old356,507365,851
    Under one year old369,289373,432
  Bulls and bull calves under two years old to be used for breeding purposes32,91031,867
        Total, dairy stock2,638,2892,681,428
Beef stock—  
  Breeding-bulls, two years old and over22,87422,129
  Cows and heifers, two years old and over775,654756,354
  Heifers—  
    One and under two years old194,143197,930
    Under one year old190,804185,756
  Steers, two years old and over463,686446,689
  Steers and bulls—  
    One and under two years old198,563202,788
    Under one year old232,274229,762
        Total, beef stock2,077,9982,041,408
        Total, cattle4,716,2874,722,836

Most of the leading breeds of the cattle of Great Britain are represented in New Zealand by herds bred on sound lines. For some time prior to 1933 the development of the beef breeds was somewhat checked, partly owing to the advance taking place in dairying operations and partly through the difficulties of competing with other countries in the British market; but the successful inauguration of chilled beef shipments to the London market led to a marked increase in beef animals. Although the wartime arrangement for the purchase by the United Kingdom Government of New Zealand most available for export did not include chilled beef, the schedule of prices was so framed that the producers of animals of the type required for the chilled beef trade would not suffer on account of the temporary cessation of the industry. A condition of the long-term contract for the purchase of meat by the United Kingdom Government, referred to on page 326, is that the chilled beef trade is to be progressively resumed as and when the shipping position permits.

Up to 1935 the breeding of dairy cattle made groat progress in New Zealand. From then on, up to 1944, with the exception of 1941, when a slight increase was recorded, a series of successive decreases were experienced. The 1945 total of dairy cows in milk during the season, 1,678,943, represented an increase of 31,023 as compared with 1944, and it was hoped, owing to the favourable position shown by the increase in young dairy replacement stock, that the 1945 increase would be the forerunner of a series of improvements in the dairying position. However, thought conditions in the summer and early autumn months were responsible for very heavy cullings, actually resulting in a slight decrease (16,999) being recorded in 1946. A further slight decrease (4,254) was recorded in 1947, but the 1948 enumeration revealed an increase of 55,842 cows in milk, and this was followed by a further increase of 33,221 in 1949.

Following is a special analysis made of the number of holdings with dairy cows in milk in the various land districts as at 31st January, 1949, grouped according to size of herd in milk. The figures relate to holdings of 1 acre and over situated outside borough boundaries. Totals for 1947 and 1948 are also given for purposes of comparison.

Land District.Number of Cows in Milk.Total Holdings with Cows in Milk.
1–910–1920–2930–3940–4950–5960–6970–7980–8990–99100 and over
North Auckland2,9051,1291,4231,5931,40298071540929418033111,361
South Auckland2,3876068311,3111,4511,3551,3069217084871,10812,471
Gisborne1,2872271931521055856292616502,199
Hawke's Bay2,72425019721319411764332015193,846
Taranaki9942233255586715674623482631403374,888
Wellington4,286647726928744473366226147871928,822
Marlborough96590847043209131241,301
Nelson1,2762842631831066224157462,230
Westland2694962917140175112608
Canterbury7,05959741229513065301785138,631
Otago4,415337221118844225135315,264
Southland3,2543133603151938426144314,567
New Zealand—            
194931,8214,7525,0975,8275,1943,8633,1002,0431,4849432,06468,188
194832,3884,7865,2985,8105,1383,7452,8992,0161,4138782,03566,406
194732,0655,1356,4995,9474,8763,5222,7621,9461,3148141,89165,771

DAIRY-PRODUCE.—The Dairy Industry Act, 1908 (a consolidation of previous legislation), with its amendments, may in general terms be described as an Act to regulate the production, collection, treatment, preparation, and manufacture, under proper sanitary conditions, of dairy-produce—i.e., milk, cream, butter, cheese, and any other product of milk or cream—intended for sale for human consumption within New Zealand or for export.

Inspectors are empowered to inspect premises used for the production or manufacture of dairy-produce. Any defects affecting the cleanliness and sanitation of the premises, or of the plant, machinery, and apparatus used in connection therewith, may be ordered to be remedied to the satisfaction of the inspector, and until so remedied their use in the production of dairy-produce may be forbidden Inspectors are authorized to condemn any dairy-produce considered unfit for human consumption, and the sale of unwholesome milk or other dairy-produce is prohibited.

Milk or cream purchased for the manufacture of dairy-produce and paid for according to the percentage of butterfat contained therein must have this percentage determined by the Babcock or the Gerber test. Dairy factories are required by regulations under the Act to pay different prices for different grades of milk or cream supplied for the manufacture of dairy-produce. Factories are also required to furnish to suppliers a certified annual statement of overrun, and provision is made for an independent investigation by the Audit Department where a supplier is dissatisfied with the statement received.

Dairy-produce intended for export must be sound and wholesome in all respects, and must comply with the requirements of the Act as to inspection, grading, and marking. The export of butter containing more than 16 per cent. of water or less than 80 per cent. of butterfat is prohibited. The export of cheese of which the water-free substance consists of less than 50 per cent. of fats wholly derived from milk is also illegal.

Wide powers are conferred to make regulations prescribing matters of detail with regard to the production, manufacture, sale, and export of dairy-produce. In particular, regulations may be made for the registration of dairies, the licensing of persons carrying on the manufacture of dairy-produce, the registration of brands to be used on dairy-produce, and for the inspection, grading, packing, marking, stamping, and labelling of dairy-produce.

The Co-operative Dairy Companies Act, 1949, which replaced similar legislation contained in the Dairy Industry Act, 1908, and its amendments, provides for the registration of co-operative dairy companies. No dairy company may include in its registered name the word “co-operative” unless it is entitled to be registered as a co-operative dairy company under the Act. A company registered under the Act is authorized to accept or to compel the surrender of shares issued in certain cases, subject to the rights of shareholders being safeguarded. This refers mainly to shareholders who have ceased to supply milk, cream, or butterfat to the company for a specified period. The Act provides for the establishment of the Co-operative Dairy Companies Tribunal of three members, the functions of which are to fix the fair value of shares surrendered in cases where the company and the shareholder are unable to agree as to the value of the surrendered shares and to fix the terms of repayment by the company.

Production of Dairy-produce.—The quantity of butterfat supplied to dairy factories from farms during 1948–49 was 394,542,000 lb., as compared with 357,914,000 lb. in the previous year, an increase of 10.2 per cent. The figure of 406,037,000 lb. for 1949–50, however, shows an increase of 2.9 per cent. over 1948–49. The following series of tables show for the years 1944–45 to 1949–50, the quantities of butterfat received into dairy factories from farms, the utilization in manufacture, and the quantities of butter, cheese, and other dairy products made.

Factory Year.Butterfat received from Farms.Butterfat recovered from Whey.Total Butterfat used in Manufacture.
In Milk.In Cream.
 (000) lb.(000) lb.(000) lb.(000) lb.
1944–45114,764259,9965,180379,940
1945–46106,447209,8154,813321,075
1946–47109,672239,5804,408353,660
1947–48114,949242,9654,395362,309
1948–49133,362261,1804,872399,414
1949–50143,714262,3235,299411,336
Factory Year.Butterfat used in Manufacture of—
Creamery Butter.Whey Butter.Cheese.Condensed and Dried Milk, &c.
 (000) lb.(000) lb.(000) lb.(000) lb.
1944–45278,7795,57191,1234,467
1945–46227,9565,05583,1524,912
1946–47263,2524,54380,9125,053
1947–48274,9534,54377,3195,493
1948–49299,1265,01888,5486,722
1949–50304,8315,49393,9337,079
Factory Year.Creamery Butter Made.Whey Butter Made.Cheese Made.Other Whole-milk Products Made.Skim-milk Products Made.
 Cwt.Cwt.Cwt.Cwt.Cwt.
1944–453,032,74560,6042,073,519287,891252,932
1945–462,479,26854,7491,890,607320,950241,211
1946–472,864,51350,2491,832,916353,747347,737
1947–482,990,42549,2051,728,902394,160377,295
1948–493,255,77754,5051,989,847451,418524,112
1949–503,317,25559,6552,107,520478,309655,317

Changes in the usage of butterfat in dairy factories over recent years are indicated by the percentages in the following table. The drought experienced during the 1945–46 season was leas severe in the principal cheesemaking areas than elsewhere so that cheesemaking was not depressed to the same extent as buttermaking.

Percentage of Total Butterfat.
1944–45.1945–46.1946–47.1947–48.1948–49.
Butterfat received into factories from farms and used for—Per Cent.Per Cent.Per Cent.Per Cent.Per Cent.
  Buttermaking74.572.175.476.975.8
  Cheesemaking24.326.323.221.622.5
  Condensed and dried milk, &c.1.21.61.41.51.7
    Totals100.0100.0100.0100.0100.0

In the next table the variations over the last eleven years in total butterfat production, including estimates for butterfat in milk and cream sold for human consumption, used and lost on farms, &c., are shown. The table also gives the number of dairy cows recorded as in milk each season, and from the two sets of figures, after making allowance for the estimated numbers of cows in boroughs and on holdings of less than 1 acre, the average butterfat production per cow “at the pail” is calculated for each year.

Year.Total Butterfat.Dairy Cows in Milk.Average Production per Cow.

* Not yet available.

† Provisional.

 Million lb.(000)lb.
1939–404311,719247
1940–414661,759261
1941–424371,757245
1942–434071,715234
1943–443871,648232
1944–454321,679254
1945–463721,662221
1946–474081,658243
1947–484181,714241
1948–494571,768259
1949–50471*255

The next table shows the estimated utilization of total butt off at production for each of the last five seasons.

1945–46.1946–47.1947–48.1948–49.1949–50.
Millions Pounds.
Supplied to dairy factories316.3349.4357.9394.5405.7
Home-separation losses4.35.35.56.06.1
Concentrated milk products not included under dairy factories0.30.20.20.30.3
  Total used in manufacture at factories (measured at pail)320.9354.9363.6400.8412.1
Human consumption: milk and cream33.234.135.036.540.0
Used in ice-cream0.50.60.60.60.6
Used in farm butter6.66.66.66.65.7
Fed to calves7.57.77.77.87.8
Spilt or wasted3.74.14.24.64.7
  Total production (at pail)372.4408.0417.7456.9470.9

The figures in the following table, which have been taken from the monthly bulletins issued by the Intelligence Branch of the Commonwealth Economic Committee, afford a comparison of production in the principal dairying countries, both pre-war figures and those for the latest year available being given.

Country.Butter (including Whey Butter).Cheese.Preserved Milk.
1938 or 1938–39.1940 or 1949–50.1938 or 1938–39.1949 or 1949–50.1938 or 1938–39.1949 or 1949–50.

* 1937 figure.

† Not available.

‡ 1948 figures.

Thousand Tons.
United Kingdom20114333202*130
Denmark18615335601828
Netherlands1008312412518285
France210192186175
Germany500332
Italy253233
U.S.A.1,0007553245231,4422,546
Canada161149575369164
Australia204173294528107
New Zealand150172851051551

Climatic conditions for the 1947–48 season were very favourable up to the middle of January, when drought conditions became apparent, particularly in Taranaki and Wellington; the result was that, in spite of the very good start, only a 2½-per-cent. increase in total butterfat production was recorded.

The climatic conditions during the 1948–49 season were excellent throughout and total butterfat-production increased by 9⅓ per cent. ever the previous year; the total of 457,000,000 lb. was the second highest on record, as also was the average yield per cow.

As in 1947–48, the 1949–50 season was very favourable and, up to the end of December, a new production record seemed assured. In January, however, an unfavourable dry spell, particularly north of Taranaki, set in and production declined steeply. However, total butterfat production “at the pail” beat all previous records, exceeding the 1940–41 figure by over 4,000,000 lb. Average production per cow, however, fell below the 1940–41 figure and was also less than in 1948–49.

The following diagram shows the progress of the dairy industry during the last forty-four years, and also illustrates the disparity between the growth in the number of dairy cows and that of pigs.

PIGS.—For some years prior to 1937 a quickening of interest in pig-production as an adjunct to dairy-farming raised pig numbers considerably above those noted previously, culminating in the record figure of 808,463 in 1936. Since then, however, the general trend has been downward, although there were slight increases over the immediately preceding year in 1940, 1941, 1945, and 1948. The 1949 figure of 544,841 shows a decrease of 263,622 or 32.6 per cent. as compared with the peak figure of 1936.

As at 31st January,Pigs under Six Months Old.Pigs Six Months and under One Year Old.Boars One Year Old and over.Sows One Year Old and over.Total Pigs.
1945502,65313,97377,202593,828
1946348,987114,66013,17172,573549,391
1947330,063135,18512,68867,938545,874
1948330,914136,13312,77668,354548,177
1949333,056130,64912,83168,305544,841

LIVE-STOCK SLAUGHTERING: The following table shows the numbers of the different classes of live-stock slaughtered for food during each of the last eleven March years. The figures are total killings—i.e., they include export-works, abattoirs, rural slaughterhouses, and killings on farms. Information in the case of the latter was not collected during the three years ended 31st March, 1945, but estimates have been included for those years.

LIVE-STOCK SLAUGHTERINGS (000 CARCASES)

Year ended 31st March,Sheep.Lambs.Cattle.Calves.Pigs.

* Provisional.

19404,43910,1606001,060826
19415,15112,0377281,068981
19424,63311,7006311,0321,003
19434,31011,2517691,045842
19444,55210,6076971,047709
19454,71710,780610966679
19465,44012,742739983727
19475,17711,8266641,039604
19484,92512,7957491,104646
19494,75412,4456641,162638
1950*4,43412,5887001,206703

Sheep and Lambs.—As the United Kingdom takes the great bulk of the mutton and lamb exported from New Zealand, it is interesting to note the extent to which New Zealand contributes to this market in comparison with importations from other countries.

In the calendar year 1938 New Zealand supplied 63 per cent. of the total frozen mutton imported into the United Kingdom and 50 per cent. of the total imports of frozen lamb. Australia, the next largest supplier in 1938, contributed 23 per cent. of mutton imports and 29 per cent. of lamb imports, while Argentina, which ranked third on the list, supplied 16 per cent. and 13 per cent. respectively.

That New Zealand has more than maintained her position in this connection in the immediate post-war years is evidenced by the figures for 1949. In that year New Zealand supplied 68 per cent. of the frozen mutton and 70 per cent. of the frozen lamb imported into the United Kingdom, whereas the proportions supplied by Australia fell to 16 per cent. for mutton and 16 per cent. for lamb. Imports from Argentina in 1949 amounted to 15 per cent. and 13 per cent. respectively.

Cattle.—New Zealand mutton and lamb form a substantial proportion of the meats imported into the United Kingdom, but New Zealand's frozen beef competes under difficulties with chilled and fresh beef from countries nearer the United Kingdom, with the consequence that the New Zealand share of the United Kingdom's beef imports has been relatively small. However, prospects for expansion brightened considerably when several trial shipments of New Zealand chilled beef were despatched to England in 1933. The experiments proved very successful, and were followed by larger shipments. In 1934 approximately 40,000 cwt. were forwarded to the United Kingdom, and each succeeding year witnessed a steady expansion of the trade, the quantity shipped in 1938 being 350,606 cwt. During the first nine months of 1939, 311,112 cwt. were exported; but, with the outbreak of war, the necessity for conserving shipping-space resulted in the temporary cessation of the industry.

The development of the export trade in chilled beef was not at the expense of frozen beef. Quantities of frozen beef shipped to the United Kingdom in 1937, 1938, and 1939, were 531,160, 544,764, and 672,310 cwt. respectively, as compared with 484,628 cwt. in 1936.

During the war period a considerably greater proportion of beef exports was shipped in boneless form in order to conserve shipping space and this practice was continued into the immediate post-war years. Also much greater quantities were exported in canned form. Consequently, it is not possible to give an exact comparison with pre-war years. It may be mentioned however, that in 1949, New Zealand supplied approximately 10 per cent. of the United Kingdom's imports of frozen and chilled beef (excluding edible offals, &c.), as compared with only 8 per cent. in 1938. This percentage in 1948 was 17.

Pigs.—As in the case of other frozen meats, New Zealand pork in normal times is shipped almost exclusively to the United Kingdom.

In international trade, exports of bacon far exceed those of other pig products, with the United Kingdom normally absorbing most of the exports of other countries. Although New Zealand supplies a substantial proportion of the imports of frozen and chilled pork into the United Kingdom, her contributions of bacon are negligible. It should be mentioned, however, that the major portion of the carcases imported from New Zealand are “baconers” the curing process being carried out in the United Kingdom.

Calves.—Prior to the outbreak of the recent war veal production was displaying evidence of rapid development, and exports of veal had increased appreciably, mainly as a result of the organization of the “bobby” calf trade.

The term “bobby calf” is defined by regulations passed in August, 1947, as being “all calves that have a live-weight of less than 100 lb.”

Meat Production and Disposal.—Particulars of the production and disposal of meat for the year ended 30th September, 1949, are shown in the following table. Carcase meat is shown at bone-in weight.

Total Production.Disposals.
Exports to United Kingdom.Other Exports and Overseas Ships' Stores.For Canning.Local Consumption.
 Tons.Per Cent.Tons.Tons.Tons.Tons.
Beef157,28529.453,5851,66513,35088,685
Veal20,2953.814,720455704,960
Mutton122,78023.069,08530041052,985
Lamb195,32036.5187,745160 7,415
Pig-meat—      
  Porkers10,4057.32,915460 7,030
  Baconers26,7506,8452901519,600
  Choppers2,050   2,050
    Total carcase meat534,885100.0334,8952,92014,345182,725
    Edible offal21,300 12,4051951,2007,500
    Grand totals556,185 347,3003,11515,545190,225

Exports to the United Kingdom are as supplied by the New Zealand Meat-producers' Board. Canned meat, equivalent to about 6,500 tons of carcase meat and raw offal, also went to the United Kingdom, which therefore received a total of 353,800 tons, or 63.6 per cent. of total production. The bulk of the remainder of canned meat was exported to the Pacific Islands.

The next table shows total meat production and exports to the United Kingdom for the three September years ended in 1948–49. The decline of 10,900 tons in 1947–48 as compared with the preceding year was attributable partly to lower average weights (particularly in lamb) caused by drought conditions during the late summer and autumn, and partly to a fall in sheep killings. Lamb production in 1948–49 was a record mainly on account of the record high average weight.

Total Production.Exports to United Kingdom.
1946–47.1947–48.1948–49.1946–47.1947–48.1948–49.
Thousand Tons.
Beef169.9165.8157.381.671.153.6
Veal18.220.120.313.414.914.7
Mutton129.4116.3122.878.865.769.1
Lamb186.5187.6195.3179.7181.4187.8
Pig-meat—      
  Porkers8.29.010.43.53.72.9
  Baconers24.926.626.86.17.26.8
  Choppers1.81.82.0   
    Total carcase meat537.9527.2534.9363.1344.0334.9
    Edible offal22.121.921.311.911.712.4
    Total production560.0549.1556.2   
anned meat (carcase weight equivalent)8.59.06.5
  Total exports to United Kingdom383.5364.7353.8
    Per Cent.
  Percentage of total production   68.566.463.6

The decline in exports to the United Kingdom in 1948–49 in the face of increased production is attributable to higher local consumption, caused by the abolition of rationing at the end of the 1947–48 season, and in a lesser degree by the greater needs of a growing population. Local consumption in 1948–49 was 190,200 tons as compared with 170,800 tons in 1,947–48 and 167,600 tons in 1946–47.

HORSES.—The following table gives numbers of horses by classes recorded, excluding horses in boroughs, figures for which are not available.

1946.1947.1948.1949.
Draught and three-quarter draught96,67786,69481,87174,004
Spring-cart (including half-draught)33,81334,92132,34631,380
Hacks and light working horses72,04071,31773,88273,709
Thoroughbred and other horses13,80513,64315,78616,962
    Total horses216,335206,575203,885196,055

Since 1911, when the peak number of 404,284 was recorded, there has been, with two minor interruptions, a continuous decline in the number of horses in New Zealand. The two interruptions referred to occurred in the years 1916–18 and 1936–38, wherein slight increases were recorded.

During the last ten years the decrease has amounted to 65,734, or 21 per cent. The greater part of this decrease has occurred in draught and three-quarter draught animals, the numbers of which fell from 123,594 in 1939 to 74,004 in 1949, while those described as spring-cart (including half-draught) horses fell from 48,170 to 31,380. This decline in the numbers of horses of the heavy type has been accompanied by a marked increase in the use of mechanical traction for farm work, the number of agricultural tractors on farms in 1949 being 27,447, as compared with 11,278 ten years earlier. This subject is discussed in more detail in Subsection 18A.

Hacks and light working horses have decreased to a much lesser extent, the difference between 1939 and 1949 amounting to 1,269 only, while the class described as “thoroughbred and other” shows an increase of 1,915. The numbers coming within this category fell away considerably during the war and early post-war years, but substantial increases were recorded in 1948 and 1949.

POULTRY.—A census of poultry has been an ancilliary inquiry associated with the census of population from 1861 onwards, with the exception of the censuses of 1896 and 1901. Until 1936, however, poultry kept by Maori households had not been brought within the ambit of the census. The extension of the inquiry to Maori households in 1936 furnished probably the first statistics in existence on this subject. The total poultry flocks of the Maoris, however, are small (91,976 in 1945 and 107,361 in 1936), and their omission from earlier censuses does not appear to have been of significance.

The following table shows the numbers recorded at the lost six censuses. All references to fowls, ducks, &c., are intended to cover both male and female birds.

Census.Number of Households keeping Fowls, Ducks, Geese, or Turkeys.Total Number of Fowls, Ducks, Geese, or Turkeys.Fowls.Ducks.Geese.Turkeys.

* Not available.

† Excluding Maori flocks.

‡ Including Maori flocks.

April, 1911*3,687,5833,215,031329,23045,38997,933
October, 1916134,2343,465,6383,141,354220,80846,95556,521
April, 1921145,9933,991,0093,491,567379,98846,23473,220
April, 1926158,8563,781,1453,308,384352,03043,87976,852
March, 1936159,0983,911,7153,415,793351,60861,41882,896
March, 1936166,3544,019,0763,488,516377,79166,66786,102
September, 1945152,2294,378,3904,006,780298,39937,66135,550
September, 1945159,3334,470,3664,070,683319,91841,90337,862

The comparability of the foregoing figures is affected by the fact that the censuses of 1916 and 1945 were taken in the spring, whereas the other censuses were taken in the autumn. Poultry numbers are subject to considerable seasonal fluctuations, the main breeding season being in the early spring, when there would be considerable numbers of young chickens included in the figures, whereas in the autumn the culling of old birds would have been more or less completed. The increase of 582,167, or 16.7 per cent. in the number of fowls recorded in 1945 as compared with 1936 should therefore' be accepted with caution. The principal feature of the 1945 results is the decrease shown for poultry other than fowls, particularly turkeys and geese. Compared with 1936, the number of ducks showed a decrease of 57,873 (15.3 per cent.), geese a decrease of 24,764 (37.1 per cent.), and turkeys a decrease of 48,240 (56.0 per cent.). It will be noted, however, that both ducks and turkeys recorded substantial decreases between the census of 1911, taken in the autumn, and the census of 1916, taken in the spring.

Number and Size of Flocks.—Although poultry-farming is regarded as a definite branch of the farming industry, the following classification as to sizes of flocks indicates that poultry-keeping is generally carried on merely as a sideline. Of the 159,333 households recorded as keeping poultry at the 1945 census, 330 cases were returned where geese or turkeys were kept but not fowls or ducks. These cases have been omitted from the table, and, in addition, only fowls and ducks have been taken into consideration. Of the 159,003 households keeping fowls or ducks, 133,181, or 83.8 per cent. had less than twenty-five birds, the corresponding percentage in 1936 being 80.8. In a further 21,919 cases the number of birds kept ranged from 25 to 99, making a total of 155,100 cases, or 97.5 per cent., in which the flocks consisted of less than 100 birds.

Provincial District.Number of Cases in which the Number of Fowls or Ducks was—
1 to 12.13 to 24.25 to 49.50 to 99.100 to 199.200 to 299.300 to 399.400 to 499.500 to 749.750 to 999.1,000 and over.
Auckland28,58020,4676,1641,6486742381539212783208
Hawke's Bay4,5983,6769922569531111312522
Taranaki4,8013,8551,1752487726151010916
Wellington13,3248,3611,877429151853721432271
Marlborough1,2001,15536910424653212
Nelson3,1282,6376882095516547 3
Westland91663315639943  21
Canterbury11,5027,7752,8841,1653761338248763689
Otago—           
  Otago portion5,1854,0121,368567181805525292569
  Southland portion4,2313,1451,293288491554719
    Totals77,46555,71616,9664,9531,691634371220313184490

Of the 490 flocks in which the number of birds was 1,000 or over, 334 ranged from 1,000 to 1,999, 82 from 2,000 to 2,999, 43 from 3,000 to 3,999, and 31 exceeded 4,000. In 1936 the number of flocks of 1,000 or over amounted to only 194, but here, as elsewhere, the remarks concerning seasonal fluctuations in poultry numbers made earlier should be taken into consideration. The larger flocks at the time of the 1945 census would be unduly swollen by the inclusion of young chickens held for sale, this being the source from which the small or “backyard” poultry-keeper mainly obtains his flocks.

Poultry on Farms.—The following table shows the numbers of fowls and ducks as returned at the annual collection of agricultural and pastoral statistics for the years 1947–48 and 1948–49. In this connection it should be noted that the figures refer to poultry on holdings of 1 acre or upwards situated outside borough boundaries. Consequently the figures are in no way comparable with those already quoted which refer to the total numbers in New Zealand.

Fowls—1948.1949.
  Hens1,395,1811,370,702
  Pullets830,203839,467
    Totals2,225,3842,210,169
Ducks—  
  Ducks166,156160,000
  Ducklings52,65143,796
    Totals218,807203,796

Poultry Control.—The Poultry Act, 1924, provides for the regulating of poultry-keeping and of the sale and export of poultry and eggs. Provision is made for the appointment of inspectors, on whom certain powers of entry are conferred for purposes of inspection of poultry or of eggs intended for sale or export. Poultry are required to be kept under sanitary conditions, and cruelty to poultry is made an offence. Every owner of poultry is required to notify an inspector of any outbreak of disease among his flock and to comply with the inspector's directions. It is an offence to sell diseased poultry. The Governor-General in Council is empowered to declare diseases, to appoint ports of export, and to appoint grading-stores.

In order to provide finance for the organization and development of the poultry industry, the Poultry-runs Registration Act was passed in December, 1933. The Act makes compulsory the annual registration of every poultry-run, which is defined as land used for the keeping of not less than twenty-five head of poultry (hens and ducks not less than six months old) and the production of eggs for sale. The fee payable annually for registration is 2s. 6d. if the flock is in excess of twenty-four hut does not exceed one hundred head. For each additional hundred (or part thereof) an additional 2s. 6d. is payable. A Board is constituted for the administration of the Act. Figures supplied by the Board show that the number of poultry-runs registered at 31st May, 1950, was 8,096 covering an aggregate of 1,408,511 birds.

BEES.—The rich dairy pastures of New Zealand and other localities where cattle raising is carried on extensively are particularly favourable for apiculture and the production of high-grade honey for the local and export markets; thus the North Island, which contains 86 per cent. of the cattle population, accounts for two-thirds of the total apiarists. The export trade is, of course, small when compared with the main primary industries, but is capable of considerable development. It is estimated that the total production of honey during a favourable season in New Zealand is 75 lb. surplus per hive, amounting to 5,524 tons, based on the present registered apiary holdings. Though seasonal conditions for honor production were erratic in most parts of the country during the 1949–50 season fair to average crops were harvested in most districts. The estimated production in commercial and domestic apiaries for the year ended 31st March, 1950, was 4,517 tons and 135,500 lb. of commercial beeswax.

Registrations under the Apiaries Act (referred to later) show that as at 31st March, 1949, there were 6,487 beekeepers with a total of 11,369 apiaries and 174,386 established hives. Following is a summary of these registrations showing beekeepers in groups according to the number of hives kept.

Group.1–5 Hives.6–20 Hives.21–50 Hives.51 Hives and Over
Beekeepers4,0171,502422546
Apiaries4,1121,7277634,767
Hives established9,40616,00014,004134,976

The foregoing figures show a falling-off by 803 in the number of domestic beekeepers with 1 to 5 hives each as compared with June, 1947. On the other hand, there has been an increase of 62 commercial beekeepers each operating over 50 hives and an overall increase of 19,878 in the number of hives kept during the period.

The Apiaries Act, 1927, which came into operation on the 1st January, 1928, was passed to consolidate and amend the law relating to the bee industry. Stringent regulations have been enacted in order to control foul-brood, bee moths, and other diseases of bees. Beekeepers are required to register all apiaries of one or more hives, and it is an offence to keep bees in an unregistered apiary. Only frame hives may be used, box hives being prohibited.

The introduction into New Zealand of bees, and used appliances for the keeping of bees and the harvesting of their products, is prohibited, save with the prior consent of the Minister of Agriculture. The consent of the Minister in regard to used appliances is restricted to such appliances as are necessary to serve as containers for bees so introduced.

Exports of honey for the last five years were: —

Year.Quantity.Value.
 lb.£
1945188,5287,531
194667,1492,516
194780,5063,053
1948197,0967,313
1949157,2627,769

A system of control on much the same lines as in the case of meat and dairy-produce was introduced by the Honey-export Control Act, 1924. The Board set up (after a poll of producers, who decided by a large majority in favour of the scheme) acts in conjunction with the Marketing Department. The Honey Export Regulations 1950 consolidated previous regulations and set out a uniform procedure for the grading of honey for export.

Prior to the issue of the Honey (1942–43 season) Emergency Regulations, apiarists had the option of disposing of their honey through the Marketing Department or through the ordinary trade channels. The regulations referred to, however, made it mandatory for a certain specified proportion of the honey produced during the 1942–43 season to be sold to the Marketing Department. Under the Honey Emergency Regulations 1944, apiarists were required to supply 30 lb. of extracted honey for each hive owned in excess of nineteen, provided that a minimum harvest of at least 40 lb. per hive had been achieved. Where the average production fell below 40 lb. the apiarist was entitled to retain the full production from nineteen hives and 10 lb. of extracted honey for every other hive owned by him. However, these regulations were not renewed in 1946, and the disposal of honey again became optional, though subject to a ceiling price. The facilities of the Marketing Department have been placed at the disposal of producers if they desire to avail themselves thereof.

Chapter 19. SECTION 19—FORESTRY

Table of Contents

THE administration of State forests and related afforestation activities in New Zealand was for many years under the control of the Lands and Survey Department, but in 1919 a separate Forestry Department was formed. This was reorganized in 1920 as a Department of State, called the State Forest Service, and was given statutory recognition and administrative authority by the Forests Act, 1921–22, which provided for a Minister of the Crown to hold office as Commissioner of State Forests. Under the Forests Act, 1949, which repealed the previous legislation, the title of the Minister has been changed to Minister of Forests, and the State Forest Service to New Zealand Forest Service.

Central management and control of the Forest Service is exercised by the Director of Forestry, with the head office at Wellington. For the purposes of local administration New Zealand is divided into seven conservancies, each under the control of a Conservator of Forests, who is responsible to the Director of Forestry. Public convenience and economy are further achieved by the subdivision of conservancies into districts under the charge of Forest Rangers, who are under the direction of Conservators of Forests. With staff concentrated largely upon administrative reforms and practices in timber sales and upon large-scale exotic forest establishment the Forest Service operated for almost twenty years on a broad organizational basis. Administration was decentralized in conservancies as major territorial charges, but neither in these nor in head office was sufficient specialization developed to warrant detailed organization. The appointment of a number of technically qualified forest officers in 1939–40 made it possible to plan for the development of work on a divisional basis. Through the intervention of the war, the reorganization was completed only in 1947, although so far personnel difficulties have allowed staffing of only five divisions—services (clerical, accountancy, legal), engineering, development (training and research), commercial (timber sales, logging, sawmilling, &c.), and management (working plans, silviculture, &c.). One other division—public and private forestry—has as yet only a token staff, whilst two others—conservation and industrial—remain to be developed. Research has been centralized at the Forest Experiment Station, Rotorua, where it is associated with the Forest Service Training Centre.

The forest legislation was consolidated in 1949, and State forests are now administered by authority of the Forests Act, 1949, Sections 3 and 7 of the Forests Amendment Act, 1921–22, and the Nassella Tussock Act, 1946. The powers conferred by the Forests Act, 1949, to deal with forest produce are subject to the provisions of the Coal-mines Act, 1925, the Mining Act, 1926, the Petroleum Act, 1937, and the Iron and Steel Industry Act, 1937. Section 23 of the Mining Amendment Act, 1934, provides for the payment to the Crown of compensation for damage to any land vested in the Crown resulting from mining operations. Such compensation in respect of State forests may be claimed by the Minister of Forests from time to time as damage is caused.

The Timber Emergency Regulations 1939 which came into force in September, 1939, after the outbreak of war, and provided for the appointment of a Timber Controller, authority for the control of forests (sale and purchase thereof), the regulation and control of timber-works, and the control of timber materials, were revoked by the Supply Regulations Amendment Act, 1948. The Timber Regulations 1948 were issued subsequently and provide control over the use and sale of certain timbers. There is now no control over the sale and purchase of forest land, but in the case of Maori-owned forest the consents of the Minister of Forests and the Minister of Maori Affairs are necessary under the Forests Act, 1949.

FOREST RESOURCES.—At the 31st March, 1950, the area of permanent State forest was 6,471,960 acres, and of provisional State forest 2,961,672 acres, these totals including 1,047,898 acres and 840,126 acres respectively of national-endowment lands. The aggregate area (9,433,632 acres) represents 14.2 per cent. of the total area of New Zealand proper. The areas of indigenous forests estimated at intervals since the colonization of New Zealand have been:—

 Acres.
184727,600,000
186923,500,000
188621,200,000
189320,500,000
190917,000,000
192312,600,000

In addition to the above, there were at 31st March, 1949, 868,000 acres of timber trees on holdings outside borough boundaries. This area includes land afforested by the State, local authorities, farmers, and commercial concerns. A brief reference to the operations of the last mentioned are given towards the end of this section, under the heading, “Privately Owned Exotic Forests.”

A national forest survey is now proceeding.

FOREST POLICY.—The forest policy is essentially one of conservation and expansion—conservation of the indigenous forests for the twofold purpose of counter-erosion and sustained timber-production, and expansion of the exotic forests for the creation of a supplementary timber-supply. Only by the integrated use of both upland and lowland forests for the preservation of their timber productivity and of their counter-erosion, their watershed, and their æsthetic and recreational activities, can the objective of the national forest policy—the enjoyment by the public of the maximum economic and social values, both direct and indirect—be achieved.

Important features of the timber-supply situation are:—

  1. Eighty per cent. of the remaining virgin forests are overmature, and there is no net growth, new growth being offset by decay, &c.:

  2. The conversion of overmature forests into healthy growing stands of indigenous species producing timber to the maximum capacity of the forest soil will necessitate silvicultural management extending over an extremely long period:

  3. Current timber demands are depleting the virgin indigenous forests at such a rate—over 30,000 acres annually—that, without other provision being made, an adequate supply of timber would not be available during the whole of the intervening period:

  4. The establishment of exotic forests to supplement the indigenous-forest resources is therefore of great importance, and large forests of exotic trees have accordingly been established during recent years. The transfer of cutting from indigenous to exotic forests is being given increasing emphasis:

  5. The important part which exotic forests will ultimately play in the forest economy of the country is already apparent. Experience in foreign countries where forestry has been practised over a period of several centuries indicates, however, that exotic species have definite limitations, and for this reason the national policy must envisage the management of the indigenous forests to secure their maximum possible production of timber.

Prominent amongst the departmental activities directed towards the solution of the timber-supply problem are:—

  1. The application of working plans and the development of a comprehensive research programme:

  2. The improvement of housing conditions for forest workers, and the wider use of permanent married employees:

  3. The institution of technical forest management to economize in establishment, maintenance, and utilization activities in both indigenous and exotic forests:

  4. The creation of new exotic forest units in timberless districts remote from timber-supplies:

  5. The establishment of State-owned forest industries, including sawmills, box-factories, planing-mills, wood-preservation plants, &c., to act as demonstration control and salvage units in the indigenous and exotic forests.

SOIL EROSION.—As one of the chief features of the forest policy, prevention of avoidable denudation and soil erosion is an important function of the Forest Service. While nothing can be done about the geological erosion which is constantly going on above, and even to some extent below, the vegetation limit of the mountain-ranges, the staying of further avoidable erosion at lower levels is definitely possible. It is well known that erosion results from misuse of the land covering, and in New Zealand at least the fundamental causes have been fire and grazing. It follows that control of these two factors is fundamental to the solution of the erosion problem. Every possible attention to these two matters has been devoted in upland State forests, but the problem is far from being an easy one.

The question of combating erosion is being investigated with a view to establishing demonstration projects, in order that the most practicable and economic methods of checking the destruction and restoring a protective vegetative cover on denuded areas may be ascertained.

A forward step in connection with the erosion problem was taken during the 1941 session of Parliament, when the Soil Conservation and Rivers Control Act was passed. This Act sets up a Soil Conservation and Rivers Control Council, which has the general direction of the administration of the Act; and also makes provision for the setting-up of Catchment Boards, each with jurisdiction over the catchment area of one or more rivers. At 31st March, 1950, twelve Catchment Boards and one Soil Conservation District had been constituted under the Act. Close liaison is maintained between the Council and the Forest Service.

FOREST MANAGEMENT.—To preserve the existing indigenous forests to posterity it is not sufficient to fence them against stock, and to protect them from fire. The composition of the forest gradually changes, one type of forest growth succeeding another. Generally the valuable timber-producing species are replaced by weed species such as kamahi, taraire, rewarewa, &c.

Of all the indigenous softwoods amenable to silvicultural treatment kauri is outstanding, and the results of investigations have been most promising. Plans for perpetuating the kauri forests and for rationing the supply of kauri timber are now in operation. Both the remaining virgin stands and the cut-over areas carrying regeneration are being brought under forest working-plans, which govern both the extraction of logs and the silvicultural treatment required to maintain forests in a state of maximum productivity. Permanent extraction routes are now being constructed, over which dead and overmature trees will be extracted along with such large healthy trees as can be removed without endangering subsequent regeneration, and logs will be disposed of on the extraction routes. A minimum diameter cutting-limit of 33 in. breast high has been imposed for virgin stands; and provision has been made for the preservation of exceptional trees and clumps as national monuments and of trees for seeding purposes to assist regeneration.

Preliminary work on the control of cutting in certain podocarp forests is being carried out with the objective of so controlling the cut that regeneration will be encouraged, that timber-production will be regularized over a definite period, and that more efficient utilization will be secured.

Forest working-plans are also being prepared for exotic forests as rapidly as present staff difficulties will allow, and a number are now completed and approved by the Minister of Forests. The history and description of individual compartments are essential preliminary data for working-plans, and the completion of these records for several more of the older exotic State forests is now in view.

A significant feature of managed State forests is their logging by the State and the sale of logs in place of trees. By no other means is it practicable to secure the close control of logging operations, so essential to the preservation of young growth and the encouragement of natural regeneration. Just as the inauguration of block sales in place of “royalty payments off the saw” has effected a marked reduction in forest wastage, so will the adoption of log sales further reduce avoidable waste.

EXOTIC FOREST UTILIZATION.—In addition to the supply of logs for the production of sawn timber, the exotic forests are being managed to yield a wide range of raw material for other uses and industries. Firewood, round constructional timbers, posts and poles for creosoting, wood-wool bolts, peeler logs for plywood, and pulp-wood for the manufacture of pulp and paper products, can all be supplied incidental to the production of saw logs, and plans are well advanced for the establishment of the major industries involved.

The exotic forest capital resources now being established will yield a surplus over the country's demands, after allowing for the supplies of virgin indigenous timber to be rigidly economized. This calls for a twofold study of national significance—one, economic, covering basic industrial and transport factors, and the other, research, covering the scientific utilization of the entire range of wood products ranging from fuel to cellulose derivatives. Economical production in order to compete in the world's market is the objective which is now being pursued.

In 1918–19 exotic-pine timbers, as judged by the quantities sawn, ranked only sixth amongst the timbers of New Zealand. By 1938–39 they had reached second place, a position which has since been maintained, the disparity as compared with rimu, which occupies first place, becoming less each year. The annual cut of rough sawn exotic-pine timber in 1918 was 4,000,000 board feet. By 1938–39 the output had risen to 41,868,000 board feet, and reference to the table on p. 377 shows a continued increase in subsequent years, the quantity for 1948–49 (155,624,000 board feet) being 372 per cent. above the 1938–39 total. The light weight, easy seasoning, and easy-working properties of these woods tend to enable them to replace rimu to a very large extent, and to dominate the markets for practically all classes of framing and light construction timber, just as already the same properties have given them dominance in the boxing and crating markets. Even for finishing-work the exotic softwoods, with their light weight and satisfactory glueing properties, find extensive use as core timber for laminated and other built-up construction, while some grades are coming into use also for flooring, weatherboarding, interior finish, and furniture. This will assist in effecting economies in the use of the more valuable indigenous timbers, which will be utilized as veneers, &c., rather than in the solid form.

The installation by the Forest Service of a modern type of log-gang sawmill at Whakarewarewa, to operate in the extensive exotic forests in that locality, was completed early in 1940, and has already fully demonstrated the accuracy of sawing which is inherent in this type of equipment. Associated with the mill are seven kilns for the artificial drying of timber, a boxmaking plant for the production of boxes, crates, and other wood products, and a creosoting plant for the treatment of fencing-posts, telegraphpoles, &c. In connection with these commercial operations, developmental work relating to timber-drying, formulation of grading rules, sapstain prevention, testing of preservatives, and improved merchandising is being continuously carried on. The experience of the Service in the use of exotic timbers in its house-building and constructional programme has been a valuable guide to the building industry.

The adaptation of creosoted timber to a wide range of structures has been investigated. Specimen culverts, bridges, and fire-towers have been made, and prefabricated timbers for both bridges and pontoons supplied. Large quantities of fencing-posts and telegraph and power poles are being produced, and the production of creosoted farm gates is also receiving attention.

RESEARCH IN FOREST PRODUCTS.—Current wood-utilization research by the Forest Service is centred upon evaluation of the inherent properties of those timbers, both indigenous and exotic, which must gradually replace the widely-used indigenous softwoods and imported timbers and timber products. In parallel with the basic studies are those relating to establishment of grading rules, air-seasoning and kiln-drying, wood preservation, and wood use generally. The extent to which various exotic softwoods may be adapted to numerous uses by wood preservatives or protective processes has become apparent during the course of a series of studies by the Forest Service. These studies have, for instance, entailed—

  1. Service tests, including ground contact and marine borer exposures:

  2. Routine testing of different types of creosote and other wood preservatives which have promise of general commercial application:

  3. Development of treating schedules for pressure application of creosote to various timbers and for hot and cold bath methods:

  4. Development of methods by which sapstaining of exotic pine timbers may be avoided:

  5. Paint-exposure tests designed to show how exotic pine timbers with their features of resin concentrations, knots, and differentiated growth rings, may be primed satisfactorily.

Again, to take wood preservation as an example, an obvious corollary to the carrying out of such studies is the translation of findings into practice. For severe exposures the actual preservatives to be used and the retention required of preservatives by the various timbers must be clearly defined. It is equally necessary to emphasize that good design and maintenance of buildings may largely eliminate the need for preservative treatment of the component parts. In other aspects of timber research the Forest Service is now able to indicate the logical uses for most of the available timbers, methods by which they may be converted to best advantage (into sawn timber, veneers, round or split products, pulpwood, &c.), seasoning methods and the usefulness of grading rules to both producers and users. Current investigations will show how some lesser known, but potentially important species, such as larch, Corsican pine, and mountain beech may be used to best advantage.

FOREST-FIRE PREVENTION.—One of the greatest problems of forest-conservation is that of fire control. Fire lookout stations are now provided in most of the major exotic forest areas, with patrols covering areas of particular danger in both exotic and indigenous forests. Access roads and tracks, tool caches, and telephone communications are being continually improved, and radio-telephone and mobile fire-fighting equipment brought into use. The development of radio for rapid assembly of fire-fighting crews is an acknowledgment of the fact that the fire is most easily fought in its early stages, whilst aircraft, which have already proved invaluable in directing actual fire-fighting work, are now being used for patrol purposes.

A further technical advance has been the setting-up of fire hazard prediction instruments measuring relative humidity and the relative dryness of forest fuels. These factors are co-ordinated with the wind velocity, rainfall deficiency, and air temperature to rate the relative fire hazard. Daily analyses of these data, made possible by radio communication, together with meteorological reports permit interpretation of the various factors to predict dangerous conditions.

The 1949–50 fire season was characterized by very dry and dangerous fire weather, particularly in the Auckland Conservancy, for a period of over three months. The number of fires reported during the year totalled 160, an increase over last year, but only 57 of these fires involving an area of 1,781 acres occurred in State forests. The amount of millable timber destroyed was negligible.

Fire prevention and control measures, formerly provided for in the Forests Act and regulations issued thereunder and in the Land Act, were consolidated and extended by the passing of the Forest and Rural Fires Act, 1947. Hitherto the statutory powers dealing with fire prevention and control were confined to areas constituted as fire districts, but the new Act provides for a suitable organization on a national scale devised to deal with the position with speed, economy, and efficiency by giving the necessary powers to local authorities. In this manner man-power and equipment are distributed so as to be available as far as is practicable at the time and place of need, consistent with the wide variation of fire hazard conditions throughout New Zealand.

Provision is made for the constitution of rural fire districts for securing the safety of trees, flax, and other plants, gum-lands, sand-dune areas, and peat lands from damage by fire, and for the declaration of a period during which it is an offence to light a fire except with a permit from a Rural Fire officer. The administering fire authority for a rural fire district is the Minister of Forests or a Rural Fire Committee appointed for the purpose, as the case may require.

In soil-conservation districts the Soil Conservation and Rivers Control Council is the Fire Authority. Each County Council is the Fire Authority for so much of the county as is not included in a rural fire district, a soil conservation district, or a State forest.

Every Fire Authority is required to take effective measures for the prevention and control of fires in the area under its control, and is required to appoint one or more Rural Fire Officers and such other officers and employees as may be necessary for the purposes of the Act. Rural Fire Officers are given wide powers to deal with the prevention and suppression of fires, including the power to requisition the assistance of men over eighteen years of age.

During the year ended 31st March, 1950, 16 rural fire districts were constituted, making a total of 66. Of this total, committees were appointed as the rural fire authority for seven districts; eleven are administered by local authorities, and the remainder are administered by the Minister of Forests as the fire authority.

The fire district, with its season of controlled burning, has proved to be a valuable means of reducing the danger to forests from fire. The general public now realize the value of fire districts as a means of preventing indiscriminate fire-lighting and “burning-off” except under expert supervision.

CLASSIFICATION OF THE INDIGENOUS FORESTS.—The forests of New Zealand, as a whole, belong to that great division of the earth's vegetation called rain-forest—a community with its most extreme development in the tropics. New Zealand rainforest may be naturally divided into two classes, subtropical rain-forest and subantarctic rain-forest, the former, in regard to its trees, being a mixed community of broad-leaved trees and conifers, and the latter a pure community of one or more of the species of beech (Nothofagus). For practical purposes the names rain-forest proper and beech-forest suffice. Between these two classes there are many intermediates, the one graduating into the other.

Rain-forest proper consists of many kinds of tall, medium-sized, and small trees, together with a dense undergrowth of numerous species of shrubs and ferns. Woody lianes and huge epiphytes are characteristic, and bryophytes abound. This class of forest is generally confined to the coastal, lowland, and montane belts—the upper altitudinal line of the last-named becoming gradually lower in proceeding from north to south.

In regard to appraisal of timber, rain-forest proper is divided into the following groups, to each of which is appended its distribution: The kauri (extending northwards from a line joining Port Waikato to Tauranga); the rimu (throughout all three principal Islands, its heaviest stands being in the central part of the North Island and on the west coast of the South Island); the kahikatea (throughout the North and South Islands, occupying low-lying swampy ground); and the totara (throughout, but mainly in the central part of the North Island).

Beech-forest must be divided into milling-forest and protection-forest. The former consists of (1) forest where the hard beech (Nothofagus truncata) and the black beech (Nothofagus solanderi) are present in quantity, or where there is only the latter (this extends from the south of lat. 38° southwards to northern Nelson, Marlborough, and eastern Canterbury); (2) forest where the silver beech (Nothofagus menziesii) and the red beech (Nothofagus fusca) are either the sole or the principal species (they extend from the Thames mountains through the montane and lower subalpine belts southwards to north-western Nelson, Westland—but absent from the Taramakau River southwards for one hundred miles—and the fiord country of Otago); and (3) forest where the silver beech is pure or nearly so, such occurring principally in southern and western Southland, and extending over the western slopes of the Dividing Range. Protection-forest, where beeches predominate, particularly the mountain-beech (Nothofagus cliffortioides), is essentially high-mountain forest, but on Mount Egmont and on the western side of the Southern Alps, from somewhat north of the Taramakau River for rather more than one hundred miles southwards, the forest is modified rain-forest proper with thin-bark totara (Podocarpus hallii) and kaikawaka (Libocedrus bidwillii) as important trees. In Stewart Island Nothofagus is absent, and the trees of the upper forest are mainly kamahi (Weinmannia racemosa) and southern-rata (Metrosideros lucida).

In addition to the high forests there are scrub forests, of which those made up of manuka (in a wide sense)—Leptospermum scoparium and L. ericoides—are commercially important on account of the value of their wood for fuel, and because, in many instances, they are an early stage of rain-forest.

The foregoing gives merely a general classification of the forests, but, from the aspect of forestry, a division into smaller groups is essential, such to be based on the composition, structure, and life-history of each group. In this regard, altitude, climate, latitudinal change, and the nature of the soil have to be taken into consideration, as well as the combination and forms of the species composing the forest and their arrangement within the forest. In all forests, changes, progressive or retrogressive, are taking place, and, so far as rain-forest proper is concerned (apart from swamp-forest), in the North Island and the northern part of the South Island the tawa (Beilschmiedia tawa) is tending to predominate, and, in the remainder of the South Island and Stewart Island, the kamahi. On the other hand, beech-forest regenerates into similar forest.

Though the forest tree species of New Zealand number about 112, only a few are of value as timber-trees; in fact, at present only nine are important milling species and, of them, six are coniferous (softwood) timbers. There are several—e.g., puriri, kohekohe, pukatea—which possess very high qualities, but which are now to be obtained only in such small quantities that they are of little commercial importance.

Chief Forest Trees.—A brief description of the principal forest-trees, with their distribution and the uses of their timber, is now given. The weights shown for the timbers are per cubic foot, air-dry. For a description of additional forest-trees the reader is referred to the 1934 issue of the Year-Book or its immediate predecessors.

SOFTWOODS

KAHIKATEA; WHITE PINE (Podocarpus dacrydioides).—This tree occurs to some extent in all forests except the beech-forests from north to south of the North and South Islands; formerly it was found in almost pure stands in swampy areas, but most of these stands have now been exploited. The average height of the tree is about 120 ft., and the average diameter about 32 in. The sapwood, which comprises the greater part of the log, is white, and the heartwood yellow. The timber (29 lb.) is straight in the grain, easily worked, and long, clean lengths and wide widths can be obtained. The yellow heartwood is durable and stable, but the sapwood is susceptible to attack by the common house borer. Since the advent of the fibre butter-box, sawn timber has again become available for general uses such as building (for which preservative treatment is generally required, unless the timber is wholly heartwood), for boat-building, kitchen furnishings and kitchenware (for which its non-odorous nature makes it very suitable), benches and containers for foodstuffs and miscellaneous woodenware.

KAIKAWAKA; MOUNTAIN CEDAR (Libocedrus bidwillii).—Though the distribution of this tree is often local, its range extends from the Hauraki Gulf to the forests of South Otago. It is most plentiful on the west coast of the South Island. The average height of the tree is about 50 ft., with an average diameter of about 18 in. The timber (27 lb.) has a very narrow, light-coloured sapwood and darkened heartwood—it is light, easy to work and split, rather brittle and durable; in this respect kaikawaka is inferior to totara, with which it is sometimes confused, but has been used satisfactorily for telegraph poles, shingles, palings, second-grade lead pencils, fencing, window-frames, fireproof doors (on account of its resistance to burning) and for boat-building (planking especially). Although the species has a wide distribution, the quantities produced as natural round or split products or as sawn timber are very small. A large proportion of logs contain heart rot, which makes conversion unattractive.

KAURI (Agathis australis).—This, the largest tree of the New Zealand forest and the most celebrated, is rather restricted in its distribution, extending as it does only from a little to the north of lat. 38° S. to the extreme north of the North Island. Its average height is about 100 ft. The maximum diameter which has been measured is 22 ft., and a few trees still exist with diameters of 14 ft. The average diameter is, however, about 40 in. The timber (36 lb.) is light-yellowish-brown in colour; it is straight in the grain, strong, easily worked and finished, even-textured, remarkably stable and durable under exacting conditions, and notably free from defects and blemishes; in its general excellence and capacity to yield clear wides, kauri is outstanding among softwoods of the world. To-day the sawn output is exceedingly small, and uses for the clear heartwood and medium grades have been practically restricted to special vats and wooden machinery and commercial boat-building. Lower grades are still used to a limited extent in building construction. Kauri-gum has also been famous as a very useful resin in the paint and varnish industry.

MATAI; BLACK PINE (Podocarpus spicatus).—This tree occurs more or less plentifully in forests throughout the North, South, and Stewart Islands. Its average height is about 60 ft., and average diameter about 24 in. The timber (38 lb.) is light-yellowish-brown in colour, straight in the grain, and easily worked. In the ground it is only moderately durable, but the timber is very durable in exposed positions above the ground, in exterior joinery (especially sills), and weatherboarding. Because of its even texture, hardness, even wearing, and stability, matai is one of the best timbers in the world for flooring.

MIRO (Podocarpus ferrugineus).—This tree occurs in lowland and montane forests from the north of the North Island to the south of Stewart Island, but is most abundant in Southland. The average height is about 65 ft., and the average diameter about 20 in. The timber (36 lb.) is used in house-building, and is often sold as rimu, to which it bears considerable resemblance. The heartwood is brownish in colour, very fine in the grain, easily worked, and of exceptional strength, though not durable in the ground.

RIMU; RED PINE (Dacrydium cupressinum).—This, the principal timber-tree of the New Zealand forest, is to be found more or less in all forests except the pure beech-forests. The average height is about 100 ft., and the average diameter about 30 in. The timber (37 lb.) when first cut is usually reddish-brown, but it changes when seasoned to a light-brown-coloured sapwood, and a reddish-toned heartwood. The latter is often finely figured with the ground colour, overlaid with highly pigmented darker and lighter streaks; occasionally it is yellow. Figured timber is used to advantage in furniture, interior finish, veneers, and flooring. Rimu is the principal building timber. Heart grades are used principally for those parts requiring timber of moderate durability; grades wholly or partly sapwood should be treated with preservatives when subject to a decay hazard in service. The timber has good strength and hardness and it machines, finishes, and paints very well. Supplies are scarcely equal to present demands and cannot be maintained at the present high level for many more years.

SILVER PINE; YELLOW SILVER, PINE; PINK PINE (Dacrydium colensoi, D. intermedium, D. biforme, and D. kirkii).—The group of small podocarps, here taken together, is far from well known, while as commercial timbers there is no uniformity in the timber supplied, that of D. colensoi and D. intermedium being both sold as “silver pine.” In the case of the so-called “yellow silver pine” the timber is white and not yellow. As at present defined, D. colensoi occurs from near Kaitaia (but only occasionally) to the volcanic plateau, where it is fairly common, and in the South Island it forms (or originally formed) considerable stands in north-western Nelson and in Westland. D. intermedium has much the same range in the North Island, but rather wider (Thames mountains, Ruahine-Tararua mountains), and in the South Island it occurs in north-western Nelson, south-west Otago, and Stewart Island. D. biforme, except in the southern part of its range, belongs essentially to the mountains, and extends from the volcanic plateau to Stewart Island, but only where the rainfall is high. D. kirkii is confined to the North Auckland peninsula from the Manukau Harbour northwards. Considering here only the extremely valuable timber (39 lb.) of the silver pine, it is whitish when first cut, but darkening to a light yellowish-brown; it is straight in the grain and easy to work. Owing to its extreme durability it has been used mainly for railway-sleepers, telegraph-poles, and posts; it is occasionally beautifully mottled, and is then used for cabinet-work. The remaining supplies are limited.

TANEKAHA (Phyllocladus' trichomanoides).—This tree occurs, but not in great numbers, throughout the North Island and in the South Island in northern Marlborough and Nelson, extending southwards to near Karamea. In height it ranges from 50 ft. to 70 ft., with a diameter of 1 ft. to 2 ft. The timber (42 lb.) is yellowish-white, free from knots, close-grained, dense, heavy, and very strong, and shrinks very little in seasoning, and for this reason is favoured for the manufacture of astragals in greenhouses, which have to remain straight in varying conditions of heat and moisture. Tanekaha is the strongest New Zealand softwood. It is of uncertain durability in the ground, but is very durable out of the ground. In the past it was used for bridge-building, sleepers, and mine-props. It is now used in railway-carriage construction. The bark is very valuable, for it contains as much as 28 per cent. of tannin.

TOTARA (Podocarpus totara and P. hallii).—These trees, which are very closely related and hybridize freely, extend throughout all three Islands (P. hallii only in Stewart Island and subalpine forests), though in many localities the totara is rare. It is most plentiful in the forests of the central portion of the North Island. The average height is about 80 ft., and the average diameter about 30 in. The timber (30 lb.) is reddish when first cut, seasoning to a reddish-brown. It is straight in the grain, easily worked, but somewhat brittle. Its great durability (P. totara is the more durable) has caused it to be much used for railway-sleepers, wharf-piles, telegraph-poles, and posts. The high price commanded by high-grade heartwood practically limits its use to-day to exterior joinery, for which purpose totara is admirably suited by its durability, good machining and painting properties, and freedom from warping and shrinkage. Low-grade heart is still used for posts and the sapwood grades for general building.

HARDWOODS

BLACK BEECH (Nothofagus solanderi).—This tree occurs in abundance—but not everywhere—in the lowland and montane belts of the North Island southwards from about lat. 38° S. (but absent in south-western Auckland and western Taranaki), and, in the South Island, in northern Marlborough and Nelson, extending southwards through eastern Marlborough and Canterbury to Banks Peninsula and Alford Forest. The timber (49 lb.) is yellowish-white with black streaked heartwood, which is extremely durable in the ground. With its additional advantages of high strength, hardness, and excellent wearing properties, the heartwood is suitable for bridge-decking, bridge timbers, and similar purposes, as well as for fence-posts. Sapwood clear of defect is suitable for dowels, handles, and bentwork, while other grades are suitable for building. The greatest obstacle to sawing black beech is the high silica content, which causes rapid blunting of saws.

HARD BEECH (N. truncata).—This tree occurs in a few localities in the North Island from Kaitaia southwards to the Thames mountains, whence its distribution is the same as that of N. solanderi. In the South Island it is abundant in northern Marlborough, and extends through Nelson with its southern limit just north of the Taramakau River. Its height ranges from 60 ft. to 100 ft. or more, and its diameter from 2 ft. to 5 ft. Until recently its timber (48 lb.) was confused with that of the red-beech, but it is harder and probably more durable. When first cut it is pinkish in colour. Its uses are the same as those of its near relative, the red-beech. With the black-beech it forms many hybrids.

RED BEECH (N. fusca).—This tree extends from about lat. 37° S. on the Thames mountains southwards throughout the North Island in the montane bolt (Mount Egmont excepted), and throughout the South Island where the rainfall is high (except southwards from the Taramakau River for one hundred miles), and in the south of Southland. It is a tall and massive tree, ranging from 60 ft. to rather more than 100 ft. in height, and 3 ft. to 6 ft. in diameter. The timber (44 lb.) when first cut is a pinkish-red in colour, turning to a light brown on seasoning; it is hard, strong, easily split, durable, and of about the same weight as English ash. It is slow seasoning, and requires end coatings and a roof over the stack to prevent sun checks, warping, and internal checking. When good-grade stock is seasoned carefully it is suitable for house-construction (framing is installed green), furniture, bentwork, handles, dowels; other established uses are sleepers, bridge-timbers, fence-posts, and mine-props. Material containing sapwood is suitable for parts of buildings and other uses when there is no decay hazard.

SILVER BEECH (N. menziesii).—This tree has much the same distribution as the red-beech, but it ascends higher, and is plentiful in the west of Southland, east of the Divide, extending to the Longwood Range. It also occurs at several places near Dunedin, and in the vicinity of Mount Cook and on the Blue Mountains. The average height of the tree is about 80 ft., and the average diameter about 2 ft. The Southland timber (34 1b.) is of a pinkish colour when first cut, but it changes to a light brown with exposure. It is straight in the grain, easily worked, and strong; it is however, not durable in contact with the ground. It is now being used for flooring, interior finish, furniture, bentwood work, agricultural implements, bodies of motor-cars, billiard-tables, tool-handles, dowels, rifle-stocks, shoe-heels, casks, barrels, cheese-crates, and packing-cases. The denser silver beech from districts other than Southland air-seasons slowly but satisfactorily under cover, and is suitable for most of the less critical uses where the heavier weight (46 lb.) is not disadvantageous.

BLACK MAIRE (Olea cunninghamii).—This tree occurs in all forests (except the beech-forests) throughout the North Island, but it is only in the central portion that it is fairly plentiful. In the South Island it is found only in Marlborough, and is very rare. It occasionally reaches a height of 70 ft. and a diameter of 4 ft., but the average height and diameter are 40 ft. and 18 in. respectively. The wood (62 lb.) is light brown, often with dark streaks, and boars considerable resemblance to that of its relative, the European olive. It is extremely dense, heavy, hard, strong, and durable. It has been used to a small extent for framing for machinery and for bridge-building, but owing to its exceptional heat-giving property its chief use has been for firewood.

NORTHERN RATA AND SOUTHERN RATA (Metrosideros robusta and M. lucida).—The first-mentioned of these trees is found in most forests below 2,000 ft. in the North Island; it is rather rare in the South Island, being found only occasionally in the lowland forests of Marlborough and Nelson. This tree generally commences life as a “perching-plant” in the forks of other large trees, and therefrom sends clown huge roots, which generally envelop and strangle the supporting tree. These roots usually (but not always) coalesce, and so form a huge bole with an average diameter of about 54 in., which is generally hollow. The southern-rata, though found only rarely in the North Island, is plentiful in the South Island and Stewart Island. It has usually the same habit of growth as an ordinary tree; its average height is about 50 ft., and the average diameter is about 20 in. The timber of both trees is reddish-brown in colour, extremely hard, heavy, strong, and (out of the ground) very durable; it is highly valued as firewood. On account of the difficulty of seasoning southern rata (71 lb.) without excessive twisting and warping it has not the same value as the northern species (55 lb.), which is used to a small extent for cross-arms for telegraph-poles and for wheelwrights' work.

TAWA (Beilschmiedia tawa).—This tree is to be found in most forests of the North Island up to an altitude of about 1,700 ft. In the South Island it occurs in the coastal forests of Nelson and Marlborough. The average height of the tree is about 60 ft., and the average diameter about 20 in. The timber (46 lb.) is light-brownish-white to cream in colour, hard, straight grained, strong hut not high in shock resistance. It deteriorates rapidly if left block-stacked in an unseasoned condition, but where rapid air-seasoning under cover is carried out under hygienic conditions degrade is slight. Kiln drying green from the saw is the preferred, practicable method of seasoning. With its excellent machining and finishing qualities, combined with a high yield of dressing grade timber, tawa is a first-class furniture wood and very suitable also for all other interior woodwork and flooring and turned products such as dowels, rods, handles, and clothes-pegs. The proposed treatment to give immunity from attack by the powder post borer will extend its popularity for these uses. Lower-grade timber is suitable for framing, dunnage, and hardwood pulp.

Principal Strength Properties of New Zealand Timbers.—The following table shows the principal strength properties of New Zealand timbers, both native and exotic species. The test samples were in the form of small clear specimens, the air-dry values being adjusted to 12 per cent. moisture content. In two of the exotic species, Douglas fir and insignis pine, tests of timber from two different localities are shown.

Common and Botanical Name of Species.Condition at Test.Weight per Cubic Foot (Pounds).Modulus of Rupture in Bending (Pounds per Square Inch).Modulus of Elasticity in Bending (1,000 Pounds per Square Inch).Maximum Crushing Strength Parallel to Grain (Pounds per Square Inch).Shear Strength Parallel to Grain (Pounds per Square Inch).
Native Species      
Beech, black (Nothofagus solanderi)Green699,4001,7504,3001,280
 Air-dry4914,5001,9808,3001,870
Beech, hard (Nothofagus truncata)Green6910,3001,8704,6001,420
 Air-dry4813,7002,1007,0001,980
Beech, red (Nothofagus fusca)Green619,1001,7203,9001,260
 Air-dry4411,4001,9307,6001,850
Beech, silver (Nothofagus menziesii)Green557,6001,2803,400940
 Air-dry3412,2001,6706,1001,420
Black maire (Olea cunninghamii)Green7513,0501,5506,0001,810
 Air-dry6217,0002,0209,6002,360
Hinau (Elaeocarpus dentatus)Green708,8001,5904,3001,380
 Air-dry4512,3001,6106,6001,610
Kahikatea or white pine (Podocarpus dacrydioides)Green516,3009602,500810
 Air-dry299,5001,1405,1001,340
Kaikawaka (Libocedrus bidwillii)Green615,6006602,800750
 Air-dry276,4008704,100820
Kamahi (Weinmannia racemosa)Green557,8001,2503,4001,290
 Air-dry4010,8001,4205,8001,920
Kauri (Agathis australis)Green517,8001,5703,400940
 Air-dry3613,1001,8905,6001,220
Kohekohe (Dysoxulum spectabile)Green577,3001,2903,100790
 Air-dry3410,9001,4007,100840
Mangeao (Litsaea calicaris)Green627,6001,3303,3001,030
 Air-dry3913,3001,6206,6001,560
Matai (Podocarpus spicatus)Green689,0001,2304,0001,000
 Air-dry3810,8001,3206,8001,600
Miro (Podocarpus ferrugineus)Green548,4001,4203,8001,150
 Air-dry3612,9001,5706,6001,690
Pokaka (Elaeocarpus hookerianus)Green656,2001,0003,2001,260
 Air-dry3910,0001,1005,5001,730
Pukatea (Laurelia novae-zelandiae)Green614,2007302,500580
 Air-dry3011,8001,7004,9001,080
Rata, Northern (Metrosideros robusta)Green7211,3001,7105,2001,610
 Air-dry5518,2002,3409,2001,940
Rata, Southern (Metrosideros lucida)Green7913,0002,1505,8001,640
 Air-dry7123,0003,15011,5002,570
Rimu (Dacrydium cupressinum)Green617,4001,2203,300910
 Air-dry3711,0001,3105,4001,260
Silver pine (Dacrydium colensoi)Green546,4007903,100840
 Air-dry398,5001,0705,8001,320
Taraire (Beilschmiedia taraire)Green728,6001,4103,9001,000
 Air-dry4213,0001,7906,6001,910
Tanekaha (Phyllocladus trichoma-noides)Green689,3001,3904,6001,210
 Air-dry4214,1001,6206,5001,400
Tawa (Beilschmiedia tawa)Green679,7001,5904,4001,100
 Air-dry4615,7002,0608,4001,780
Totara (Podocarpus totara)Green596,5009203,100810
 Air-dry307,6001,0705,5001,120
Exotic Species      
Douglas fir (Pseudotsuga taxifolia), Mackenzie CountyGreen366,3001,1002,800830
 Air-dry279,0501,2604,9001,220
Douglas fir (Pseudotsuga taxifolia), Marlborough CountyGreen398,0001,2103,8001,030
 Air-dry3613,4002,0006,6001,340
Insignis pine (Pinus radiata), Rotorua CountyGreen585,9001,0602,600870
 Air-dry2811,2001,3405,6001,550
Insignis pine (Pinus radiata), New Brighton BoroughGreen516,1009102,8001,060
 Air-dry319,3001,0604,2001,370
Macrocarpa (Cupressus macrocarpa), Tuapeka CountyGreen508,0009703,8001,010
 Air-dry3110,9001,1805,9001,620
Larch (Larix decidua), Rotorua CountyGreen417,5001,3203,200830
 Air-dry3513,5001,7407,1002,060

OUTPUT AND CONSUMPTION OF TIMBER.—For the year 1948–49 timber production again showed an increase, rising from 428 million board feet in 1947–48 to 470 million board feet. This figure is the highest yet recorded. In 1945 an immediate objective of 420 million board feet annually was set, this figure being an estimate of the average level of production required to meet the annual demand during the first five post-war years. Although this target has been exceeded for the past three successive years (the output for 1949–50 being tentatively set at 474 million board feet), the average over all the five years has not quite reached the target; the actual output being 415 million board feet annually, as against the objective of 420 million. Nevertheless, while there is still a shortage of certain grades and qualities, due largely to the relative immaturity of the exotic forests, for the first time since the beginning of the war the over-all timber situation is relatively good.

The incidence of production by species during 1948–49 did not register any marked change, the increased cut being spread over practically all species with the exception of kauri, which is now permanently reduced to a very low level, and kahikatea which, apart from the year 1947–48, shows a fairly steady decline over the past five years. However, although the indigenous forests contributed to the increase in production as much as the exotic forests, it should be emphasized that the increase from the former is only temporary. Production from the indigenous forests may be maintained at a relatively high level for the next year or two, but the intention is to reduce cutting eventually to the point where a small annual yield of indigenous species can be maintained in perpetuity so that our prized indigenous timbers are not completely cut out and entirety lost to production. On the other hand, the substantial increase in the output of exotic species is merely the continuation of a trend which has been apparent for a number of years and which is destined to lead within a comparatively short period to the dominance of the entire timber output by the exotic species. The fact that the production of insignis pine, which is the principal exotic species, has risen from only 10,000,000 board feet in 1930, to 155,624,000 board feet during 1948–49, provides clear evidence of the increasing popularity of this species and its general suitability and adaptability for a wide variety of purposes. At the present time it is exceeded in output only by rimu, but this position is likely to be reversed within the next five years. The importance of farm shelter-belts and wood lots—hitherto a major source of log supplies—is rapidly declining now that development of the managed exotic forests is proceeding on a considerable scale.

Preliminary figures of production for the year 1949–50, collected by the Forest Service in connection with the annual registration of sawmills, indicate a small but purely temporary reversal of the relative trend of the two major species. Production of insignis pine has declined 7 million board feet from the 1948–49 figure, whereas rimu has increased by 7 million board feet. However, it appears that there will be little, if any, increase in total production over last year. In general, the production of the major indigenous species is above that of last year by 12 million hoard feet, while the major exotic species have declined by 9 million board feet. The reasons for this change can be ascribed briefly, in the case of exotic species, to the difficulty of maintaining log supplies from farm wood-lots and shelter-belts, the traditional source of supply in many parts of the country, and the fact that no new large mills commenced operations in the exotic forests. In the case of indigenous timber the high level of production is largely due to the timber workers' accommodation scheme, which applies only to sawmills cutting indigenous species. This, coupled with the many new mills which were established the previous year, has enabled the output of indigenous timber to be increased. The principal reasons for the overall production failing to show an increase comparable with that of preceding years are, firstly, the reduction in working-hours in some mills which has resulted in a lower output; and, secondly, production was already at a high level having regard to the number of mills in operation and the available labour supply. Significantly, the number of mills in operation and labour employed both show a slight decrease on last year.

The following are tentative figures allowing output of the major species for the year ending 31st March, 1950: Rimu and miro, 224,000,000 board feet; matai, 32,300,000 board feet; totara, 13,500,000 board feet: white pine, 18,600,000 board feet: beech, 17,700,000 board feet; and insignia pine, 146,400,000 board feet. Kauri is below 1 million board feet (i.e., 900,000 board feet) for the first time since milling of this species commenced, Total production approximates 474 million board feet.

The subjoined table gives particulars of output by species for the past five years quantities are quoted in board feet (i.e., units of 12 in. by 12 in. by 1 in.).

Species of Timber.1944–45.1945–46.1946–47.1947–48.1948–49.
 Bd. Ft.Bd. Ft.Bd. Ft.Bd. Ft.Bd. Ft.
Kauri2,878,0002,801,0002,283,0002,570,0001,339,000
Rimu181,931,000175,125,000170,529,000195,047,000212,479,000
Kahikatea, white-pine17,990,00017,043,00015,116,00019,490,00017,502,000
Matai19,182,00018,835,00019,674,00025,898,00029,572,000
Totara11,252,00010,561,0009,627,00012,908,00013,264,000
Beech11,074,00012,123,00011,607,00014,976,00016,527,000
Insignia pine85,713,00096,819,000111,591,000134,524,000155,624,000
Other and unspecified10,113,00011,416,00013,529,00022,702,00024,038,000
    Totals340,133,000344,723,000353,956,000428,115,000470,345,000

Details of the 24,038,000 board feet of “other and unspecified” species for the year 1948–49 are as follows:—

Species.Board Feet.

* Includes unspecified.

Tawa8,389,000
Miro2,030,000
Rewarewa340,000
Rata311,000
Tanekaha303,000
Pukatea242,000
Hinau214,000
Mangeao210,000
Puriri165,000
Taraire133,000
Eucalypts2,152,000
Macrocarpa991,000
Poplar373,000
Other*8,185,000
Total24,038,000

Exports of New Zealand timber during the calendar year 1948 amounted to 22,768,000 board feet, valued at £508,949, the principal species being rimu (4,040,000 board feet), insignia pine (14,428,000 board feet), beech (1,177,000 board feet), matai (2,300,000 board feet).

Imports during the year comprised 17,594,000 board feet of sawn timber, including 4,447,000 board feet of Australian hardwoods, 4,816,000 board feet of Oregon pine (Douglas fir), and 2,182,000 board feet of western red cedar. The total value of sawn timber imported was £533,000. The figures of exports and imports of timber during the five years ended in 1948 are:—

Year.Exports of New Zealand Timber.Imports of Timber.
Sawn and Hewn Timber.Sleepers.Logs unworked.Total Value.*
Quantity.Value.Quantity.Value.

* Includes other items.

† In addition, pulpwood, equivalent to 636,000 board feet, was exported to Australia for experimental purposes.

 Bd. Ft.£(N.Z.)Bd. Ft.£(N.Z.)£(N.Z.)£(N.Z.)£(N.Z.)
19444,252,02559,72711,411,708247,35163,1082,048326,419
19454,133,00085,73013,512,000318,30069,0003,000392,735
19467,990,000162,35413,747,000294,650132,00033,050516,020
19478,857,000184,45121,625,000772,600153,100126,3001,192,910
194822,768,000508,94917,594,000533,000412,900127,0001,072,900

SALES OF STATE TIMBER.—Under the timber-sales policy in operation in recent years for the disposal of the mature timber in State forests, the standing timber is appraised and disposed of by public tender as a block sale. As stated earlier in this section, a system of State logging and log sales is now in operation in certain areas.

Year.Timber sold.Sale Price.Percentage of Total Timber produced.
 Bd. Ft.£ 
1944–45104,017,500141,46730
1945–4672,529,000104,23921
1946–47109,941,000190,15331
1947–48127,736,000194,90930
1948–49150,881,000264,20032

FOREST FINANCE.—Up to and including the financial year 1915–16 the expenditure on afforestation was provided out of rents and royalties received from State forests and by an annual contribution from the Consolidated Fund. In 1916–17 provision was made for the borrowing of money for forestry purposes, and from then until 31st March, 1948, all receipts and payments were shown in a State Forests Account. Under this system capital moneys were employed for all purposes even where their use was not justified. To rectify this, the account was closed, and from the 1st April, 1948, the Consolidated Fund has been used to finance general administrative activities where loan moneys are not warranted, and the Public Works Account (i.e., capital funds) is used in connection with forest development and management, and the development of utilization and administrative units. Commencing with the year 1933–34, interest on loans is carried forward as a liability to the Consolidated Fund until realization of the plantations.

Item.1944–45.1945–46.1946–47.1947–48.1948–49.

* Those items ceased to be paid into the Consolidated Fund as from 1st April, 1948.

† Reimbursement of Working Hallways Account in respect of costs of development of areas taken over for forestry purposes is now complete.

Receipts
 £££££
Indigenous forests receipts—     
  Timber sales121,603135,913155,208212,454194,934
  Timber royalties and trespass9,25013,45111,48114,58527,382
  Leases, grazing1,6112,8652,2292,0832,822
  Sawmill sites, industrial, &c.308672359378381
  Miscellaneous9,1248,96016,41916,52620,247
Log sales from managed forests54,71667,05362,43284,864129,983
Exotic forests: Polos, posts, fire-wood, &c.45,93838,64339,97552,52557,544
Utilization projects—     
  Sawn timber22,52963,45198,703109,716214,366
  Creosoted products45,91817,30517,8897,21611,677
  Box shooks129,126182,187134,839207,192187,212
  Miscellaneous9,8759,53212,84023,07216,168
Miscellaneous credits10,80248,29237,95332,66535,960
    Totals460,800588,324590,327763,276898,676
Receipts from national endowment indigenous forests (included in above)47,42647,15737,36652,911*
Payments
Allocation of revenue—     
  Consolidated Fund (portion of revenue from national endowment forests)16,19614,235 16,023*
  Working Railways Account (section 24 (1), Finance Act, 1936)  3,5394,329
Local authorities12,79917,11425,75021,07829,219
General management charges—     
  Salaries110,317137,984187,714225,047283,869
  General expenses56,019102,275130,770144,973168,373
Land purchase38,95730,09818,29611,64034,188
Forestry projects under direct management—     
  Exotic346,743377,910710,376811,4951,039,630
  Indigenous41,91258,80879,023135,698157,503
Utilization: Sawmill, creosote plant, &c.125,931133,677174,379318,826500,694
Pulp and paper making  12,36925,02323,670
    Totals748,874872,1011,342,2161,714,1322,237,146

The revenue from indigenous forests is now used to reduce loan-moneys required to finance forest activities under the Public Works Account, and statutory payments to local authorities are a charge on the Consolidated Fund.

STATE EXOTIC FORESTS.—State afforestation on an organized basis dates from 1896, when an Afforestation Branch of the Lands Department was formed, and forest-tree nurseries were established at Tapanui and Eweburn in the South Island, and at Rotorua in the North Island. Planting commenced in 1898, when a total of 54 acres was established.

Figures of the areas planted by the Forest Service for five-year periods are shown below.

Period.Acres.
1921–22 to 1925–2640,141
1926–27 to 1930–31230,114
1931–32 to 1935–36112,963
1936–37 to 1940–4122,019
1941–42 to 1945–468,946

The gross area of State exotic forests at the 31st March, 1949, was 765,566 acres, of which the area actually established was 455,075 acres, exclusive of fire-breaks, waste lands, reserves, &c. The now area planted in 1948–49 amounted to 4,568 acres.

While many species were experimented with in the initial stages of the work, the chief species planted in the North Island were European larch (Larix decidua), Austrian pine (Pinus austriaca), Corsican pine (P. laricio), Western yellow pine (P. ponderosa), and a number of eucalypts. In recent years the main species planted have been Douglas fir or Oregon pine (Pseudotsuga taxifolia), Western yellow pine, Insignis pine (P. radiata), and Corsican pine; whilst in the Auckland Conservancy the Southern pines (Pinus palustris, P. taeda, and P. Caribaea) have shown promise.

In the South Island practically all the best-known commercial trees of the Northern Hemisphere have been tried, but many have been discarded as unsuitable for various reasons, until at the present time operations are being conducted with a comparatively small range of conifers which experience has shown will most readily adapt themselves to local conditions. The principal species now being used are Western yellow pine, Corsican pine, Douglas fir, and Insignis pine.

Waitangi Endowment.—The Waitangi Endowment, containing 1,438 acres, is portion of an estate containing the historic site of the signing of the Treaty of Waitangi, presented to the Crown as a national monument by Viscount and Lady Bledisloe in 1932.

By authority of the Waitangi Endowment Act, 1932–33, the Minister of Forests is empowered to administer the land as if it were a State forest, and to develop and use the land for afforestation purposes. To date 533 acres have been planted.

The primary object of these afforestation operations, however, is to reclothe a treeless area to form a scenic background for the portion of the estate known as the Waitangi National Trust, which contains the historic site mentioned.

MISCELLANEOUS FORESTRY PROVISIONS.—The method first adopted in New Zealand for encouraging the planting of trees for the production of timber was by means of “land grants”—a settler being given a free grant of land if he planted a certain portion of his land with suitable trees. Several large plantations were established in Canterbury by this method, which, however, was abandoned in the “eighties.” The Selwyn and Ashburton County Councils are the outstanding examples of local authorities which took advantage of this scheme, and are now receiving substantial revenues from their tree plantations.

Under the system of taxation in operation in New Zealand, encouragement is given to the conservation of indigenous forests and plantations and to the establishment of new plantations, by exempting the value of the trees from land-tax and local rates.

The actual land supporting indigenous forests and plantations is subject to land-tax. The tax, however, is assessed on the unimproved value, which for taxation purposes does not include the value of any trees or the value of the labour or capital expended in planting them.

Local rates on land supporting indigenous forests and plantations are levied on the value of the land only. A County Council is empowered to make an annual levy of ½d. per hundred feet board measure on timber in the county converted from the log into sawn timber; but this levy is not applicable to timber cut from plantations.

Appraisements of timber are not liable to stamp duty if made for the Crown, for a local authority, or for the information of one party only.

Licences granted by the Crown to cut timber are exempt from stamp duty, other licences are not exempt.

Land on which trees of any kind are growing is subject to death duties (estate duty, succession duty, and gift duty), which are assessed on the capital value of the land, this including the value of the trees.

PRIVATELY-OWNED EXOTIC FORESTS.—The area of planted forest owned by joint stock afforestation companies, local authorities and private persons now stands at 413,000 acres.

Private and local authority planting commenced as early as 1855, and at the present time amounts to about 100,000 acres. The earliest plantings have already been milled and in many cases replaced with a second crop. The timber obtained has been found suitable for building purposes by reason of its age and consequent high heart wood content but is generally knotty because of the untended state of early plantations. In more recent years several local authorities and some private owners have been giving their plantations more care and attention.

Afforestation companies boomed in the period 1923–30 when huge areas were planted, chiefly with Pinus radiata. The total area last reported was 313,000 acres. Utilization was commenced some years ago in an endeavour to bring this short-period establishment into a normal series of age gradations, and the cut-over area is already being regenerated.

The general trends in the use of the exotic timbers are indicated elsewhere under the heading “Exotic Forest Utilization.” Large sawmills equipped to handle economically the relatively small logs are tending to replace the traditional smaller units. Utilization by pulping processes is expanding. Mills for the manufacture of container board, insulating wallboard and hardboard have been operating for some years, and new developments are pending. One of the large company owners is proceeding with the establishment of a plant for the manufacture of kraft paper, while in addition there is a national project which aims at the production of chemical pulp, and newsprint, from the extensive State exotic forests in the Kaingaroa district.

Chapter 20. SECTION 20—FISHERIES

Table of Contents

THE principal characteristics of New Zealand's fisheries are the great length of the coast-line, extensive natural harbours, numerous sheltered bays, and narrow continental shelf. Off its more northerly coasts, which come within the influence of the south equatorial current, a rich variety of subtropical fish is found, as exemplified by such species as the flying-fish, the sunfish, the swordfish, and several shark species. On the other hand, its southern coasts, washed by the Antarctic drift, are the natural haunt of the fur-bearing seal, and yield varieties of fish which are characteristic of cold-water conditions.

Of the many kinds of excellent edible fishes the most important are the snapper (Pagrosomus auratus), which is the principal species in the catch (mainly by trawl) in the north-western part of the South Island, the west coast of the North Island and the east coast of the North Island to just south of East Cape; next in importance is tarakihi (Dactylopagrus macropterus), which is taken mainly by trawlers working off the east coast of the North Island and in smaller quantities off the west coast of the South Island. The groper or hapuku (Polyprion oxygeneios) is caught on lines in the deeper water from North Cape to Stewart Island, but principally in Cook Strait and on the rocky parts of the east coast of the South Island, while the blue cod (Parapercis colias) is the staple line-caught product of the southern line fisheries particularly about Foveaux Strait and Stewart Island.

The flounder and sole (Pleuronectidae) occur in the more shallow and sheltered waters.

The most productive grounds are in relatively shallow water, and, except for groper and ling fished for by means of deep long lines, most of the fishing is carried on at depths of less than 40 fathoms. Depths of over 100 fathoms occur at a comparatively short distance from the coast, and up to the present it is not known to what extent these deeper waters may be productive of marketable fishes. The principal methods of fishing are long-lining for groper (hapuku), ling, “hake” or “kingfish,” and snapper; hand-lining for blue cod; trawling and Danish seining, by which flounders, snapper, tarakihi, gurnard, john-dory, and a variety of other fish are taken. In bays and estuaries set-nets are used for flounders, snapper, and mullet, and seines are also employed principally for the capture of flat-fish and snapper. Sardines or pilchards (Sardinia neopilchardus) and other species of the herring family are known to occur in large shoals off some parts of the coast from time to time. There is no-regular fishery for these kinds except where they have been periodically netted for bait by Cook Strait fishermen in the Marlborough Sounds. Attempts to commercialize these fish have been unsuccessful mainly because their appearances proved extremely irregular and inadequate in quantity.

In order to ascertain the economic position of the fishing industry an investigation committee was set up, under the Board of Trade Act, in 1937. This committee conducted exhaustive inquiries into all aspects of the industry, and reference to the committee's report (parliamentary paper H–44A, 1937–38) will give detailed information as to the conditions under which the industry then operated.

The fishing industry—that is, “the taking of fish and shell fish for sale”—came wholly under the control of the Marine Department by virtue of the Fisheries Amendment Act, 1945, which provides that any boat used in fishing for purposes of sale must be registered, and that the owner of such a boat must be the holder of a licence authorizing the boat to be so used. In addition, any person employed on a fishing-boat except as an engineer engaged wholly in connection with the propelling machinery, or wholly as a fireman, or as a cook, must be the holder of a crew licence. Those provisions were brought into force as from 31st December, 1945, by the Sea-fisheries (Boats and Licences) Regulations 1945.

STATISTICS OF FISHERIES.—Commencing with the year 1944, the Marine Department has adopted the calendar year as a standard for the expression of statistics of fisheries in place of year ended 31st March formerly in use.

The number of licensed fishing-vessels operating in 1948, was 813, as compared with 758 in 1947 and 797 in 1946, while the number of whole-time and part-time men engaged in the fishing industry in 1948 was 1,672, as compared with 1,568 in 1947 and 1,550 in 1946.

Although the total weight of wet fish, 446,265 cwt., marketed in 1948, is the highest recorded total, the small increase (7,965 cwt.) over last year's total of 438,300 cwt. indicates that the factors which have in successive years since the war given such substantial increases in the total annual catch are now almost spent. The effect of the return of the large catching units after war service, and the re-engining and replacement of many vessels after the war, upon fisheries that had enjoyed a comparative rest period during the war years is now very much reduced. These changes that have taken place in the post-war years have, in effect, greatly increased the potential of the fishing effort and have to date consumed their energies upon rested fisheries. It now remains to be seen whether this greatly increased potential can maintain the correspondingly increased level of production. Already in a number of ports there are indications that the upper level of production has been reached. The cost of maintaining this increased fishing potential in the light of seasonal fluctuations of supply is now in the process of sorting itself out as the industry goes through its final stage of settling down again.

Of the total catch (446,265 cwt.), 88,310 cwt. (19.79 per cent.) was landed from steam-trawlers. 128,195 cwt. (28.72 per cent.) from motor-trawlers, 88,980 cwt. (19.94 per cent.) from Danish-seine boats, while motor-vessels (line and net fishing) accounted for 137,153 cwt. (30.74 per cent.) and row-boats 3,627 cwt. (0.81 per cent.).

The most important fishing ports in New Zealand are Auckland, with 32.0 per cent. of the total catch in 1948; Wellington, 9.0 per cent.; Port Chalmers, 8.6 per cent.; Napier, 6.1 per cent.; Timaru, 4.6 per cent.: Bluff and Stewart Island, 3.9 per cent.: and Thames, 3.8 per cent.

During 1948 the total quantity of fish landed at Auckland was 142,766 cwt., of which 110,911 cwt. was snapper and 17,031 cwt. tarakihi. The total quantity landed at Wellington during 1948 was 40,117 cwt., of which 23,423 cwt. was tarakihi and 8,075 cwt. was hapuku. In Port Chalmers a total of 38,460 cwt. was landed, of which 11,262 cwt. was barracouta and 9,652 cwt. sole.

The estimated total quantity and value of the principal classes of fishery products marketed during each of the last two years were as follows:—

Unit.Quantity.Value.
1947.1948.1947.1948.

* Not available.

    ££
Wet fishCwt.438,300446,265802,496838,334
WhitebaitCwt.7,05651779,02773,855
Oysters (dredged)Sack81,51894,44461,13879,097
Oysters (rock)Sack5,2805,6939,2409,945
MusselsSack16,26114,4145,5634,904
CrayfishCwt.18,05227,23042,13465,034
Toheroa (canned products)Lb.43,40026,5602,8712,213
Fish liversLb.698,383677,435*26,815
Whale oilTon64064425,00025,760
  Total value   1,027,4691,125,957

The next table shows the quantities and values of New Zealand fish and shell-fish exported for each of the four years, 1945, 1946, 1947, and 1948.

1945.1946.1947.1948.

* Included in frozen fish prior to 1943.

Fish (frozen) Cwt.22,66327,69841,80054,671
£104,046139,065235,079340,441
Fish (smoked, dried, pickled, or salted) Cwt.4,2762,6024,3842,725
£26,39015,27727,53311,419
Oysters (fresh) Doz.64085,4889501,020
£1885,4882,8192,730
Oysters canned) Lb.1,92411,8859,1932,378
£199949803244
Toheroa (canned) Lb.16,0285,10814,1076,461
£1,3133991,098499
Whitebait (canned) (Lb.197,827287,027265,657266,558
£39,34754,75052,89452,643
Crayfish (frozen) Cwt.1,3461,4872,3353,731
£6,4627,45517,14044,466
Crayfish (canned) Lb.25,89233,47260,3519,052
£3,0344,2498,3171,685
Other kinds (canned) Lb.130,107112,552300,257470,858
£6,5726,27115,32741,778
Mussels (fresh, not in shell) Cwt.***75
£***531
  Value of total exports of New Zealand fish and shell-fish£187,381£231,234£358,218£493,736

FISH-LIVER OIL.—An important development in the utilization of fishery products, hitherto wasted, has taken place as a result of conditions arising out of the war. This consisted of the establishment in 1940 of two factories for the production of fish-liver oils to replace overseas supplies which were threatened as a result of war developments. The quantity of fish-livers processed in 1948 was 677,435 lb., which produced 24,083 gallons of oil, as compared with 698,383 lb. and 30,427 gallons respectively in 1947. A total of 17,712 gallons of oil was exported in 1948, and 27,025 gallons in 1947.

CANNED FISHERY PRODUCTS.—Only a small quantity of the fishery products are canned in New Zealand, the bulk of the total catch being used fresh or frozen. Varieties that are canned include oysters, toheroa, paua, mussels, crayfish, kahawai, trevally, herring, pilchard, kingfish, gurnard, marlin, barracouta, mullet, mackerel, eel, whitebait, and whale-meat.

The following table sets out the quantities canned in 1948:—lb.
  Shellfish (including crayfish)61,756
  Whitebait215,207
  Sea fish generally750,788
  Eels17,520
  Whale-meat89,600
    Total1,134,871

OYSTER-BEDS.—The principal oyster-beds around the coast of New Zealand are those situated in Foveaux Strait, between South and Stewart Islands, and the rock-oyster beds on the east and west coasts of the Auckland peninsula.

In South Island waters a close season is observed from 1st October to 14th February, and in North Island waters from 1st November to 30th April, in each year. The taking of oysters is governed by the Oyster-fishing Regulations 1946, and vessels operating commercially are subject to the Sea-fisheries (Boats and Licences) Regulations 1945, referred to earlier. During the 1948 season 94,444 sacks of oysters were dredged from Foveaux Strait, compared with 81,518 sacks in 1947 and 89,356 sacks in 1946.

The rock-oyster beds of Auckland were worked for many years under a variety of systems, but, owing to stripping of the beds, close seasons had frequently to be proclaimed. From 1908 the picking and wholesale marketing of rock-oysters from the North Island beds has been undertaken by the State, private picking being prohibited.

Oyster-cultivation work is being systematically carried on by the Marine Department in the Hauraki Gulf, in the Bay of Islands, and in the Kaipara district.

Rock-oysters picked and sold by the State in 1948 totalled 5,693 sacks, compared with 5,280 sacks in 1947 and 5,103 sacks in 1946.

CRAYFISH.—Marine crayfish occur off many parts of the New Zealand coast and are caught in baited pots. Part of the catch of crayfish is sold in local markets for domestic consumption, part is exported as frozen cray tails and whole crays while a small quantity is canned.

WHALING.—With the enormous development of pelagic whaling that has taken place in recent years the whaling industry in New Zealand has greatly declined from the important position which it occupied in the early days of the colony. Only one shore station was in commercial operation during the 1948 whaling season. This station is situated in Tory Channel, Queen Charlotte Sound, and the season's catch in that area was 92 whales, all humpbacks, The total oil-production was 644 tons, while other products included SO tons of bonedust and 40 tons of canned whale-meat.

The Whaling Industry Act, 1935, was passed in order to give effect to an International Convention for the regulation of whaling and matters incidental thereto.

SEALS.—The taking of seals in New Zealand waters has been on a restricted scale during the last fifty years, these animals being placed on the protected list in 1894. No sealing was then allowed until 1913, when there was an open season, but with certain restrictions. From 1916 a close season was observed until 1922, when the taking of seals was again permitted, but only till 1924, since when a close season was observed until 1946.

A short restricted open season was permitted during 1946 by the Seal Fisheries Regulations 1946, but a close season is again being observed.

BIG-GAME FISHING.—Swordfish (striped and black marlin, and occasionally broadbill), mako shark, and other big-game fish occur principally off the east coast of the Auckland Provincial District, and attract both New Zealand and visiting big-game fishermen. The principal centres for this sport are Whangaroa, Russell (Bay of Islands), Whitianga (Mercury Bay), and Tauranga, where specially designed and equipped launches in charge of experienced men may be hired. The season lasts from December to May, the best months usually being February and March. The world's record black marlin swordfish (976 lb.) was caught off the Bay of Islands in February, 1926.

To preserve this very important fishery, the Fisheries (General) Regulations 1947, superseded by the regulations of similar title issued in 1950, were gazetted prohibiting the taking of these fish by other than rod and line, and stipulating that the line was not to be heavier than “No. 39 linen thread line.” In addition, a limit bag of not more than four fish per day has been imposed.

WHITEBAIT.—A fishery that is peculiar to New Zealand with regard both to the product and to the methods of operation, carried on from July to November in the tidal reaches of many rivers, is the whitebait fishery. New Zealand “whitebait” are the young of Galaxias attenuatus, a species that lives for the greater part of its adult life in fresh water, descending to tidal water to spawn in late summer and autumn. The spawn is deposited among grass and similar herbage on the margins of the rivers above the ordinary high-water mark in a zone that is submerged only at the highest spring tides. Here it remains under cover of the herbage and secure from aquatic enemies until it is once more reached by a spring tide about a fortnight or, it may be, a month later. The young then hatch out, and are carried by the ebb tide to the sea. Here they remain until, at the age of about five months, the young fish, then about 2 in. long and still possessing the almost glassy transparency of the larval stage, migrate up the rivers in dense shoals. This is the time of the whitebait fishery, when they are caught in nets made of wire gauze or mosquito-netting. The cultivation and drainage of riparian lands have considerably diminished the extent of spawning and feeding areas that were available in earlier times. From these causes, as well as from the intensity of the fishing operations, there are now few rivers where the runs of whitebait show anything like the abundance of former years. The most productive whitebait fisheries are near the mouths of the rivers of the west coast of the South Island and in the lower reaches of the Waikato River. Normally the whitebait fishery gives employment to over three hundred regular fishermen, and a greater number of part-time fishers, and, over a period of years, produced an average of approximately 3,000 cwt. of whitebait. As a result of reasonably good seasons over a period of years, and with improved transport from the more remote rivers, in which aeroplanes have played an important part, a substantial whitebait industry has been developed. The estimated quantity marketed in 1945 was 8,698 cwt. (the highest recorded since returns were first collected in 1932), as compared with 7,056 cwt. in 1947, and 4,517 cwt. in 1948, the latter season being a poor one.

FRESH-WATER FISHERIES.—Native Fishes: Of fresh-water fishes indigenous to New Zealand the species of most commercial importance at the present time is Galaxias attenuatus, which provides the whitebait fishery already mentioned. Other species of Galaxias are known in the streams and lakes of the country. With the exception of the eels, which frequently attain an extraordinarily large size compared with those of the Northern Hemisphere, all the native fresh-water fishes are small, and are therefore not considered to possess any sporting value except to the most juvenile of anglers. There are two species of eels—Anguilla australis, the short-finned eel; and Anguilla dieffenbachii, formerly known as Anguilla aucklandii, the long-finned eel. Recent investigations by Marine Department biologists have thrown new light on their distribution. It is now known that all male eels remain in tidal and brackish waters; female long-finned eels are found throughout all accessible fresh waters, while female short-finned eels are restricted to the warmer, deeper, and slowly-flowing waters, and in the South Island are found only in the lower reaches of rivers and in coastal lakes. Eels constituted an important food-supply to the Maoris, who devised very efficient traps for their capture as the adult eels migrated to the sea. This fishery is still carried on by the Maoris of some districts and during recent years some commercial fishing has taken place for home markets and for export. So far as available supplies are concerned, there is scope for considerable development in connection with eel utilization in New Zealand.

The following list shows the definitely known genera of indigenous fresh-water fish and includes all the principal species.

Scientific Name.European Name.Maori Name.Usual Maximum Size.
   Inches.
Galaxias attenuatus“Minnow”Inanga7
Galaxias fasciatusNative trout or mountain troutKokopu10
Galaxias brevipinnis“Gudgeon”Taiwharu or kokopu6
Galaxias huttoni Koaro6
Galaxias burrowsiiCanterbury mudfish 5 to 6
Neochanna apodaMudfishHauhau or waikaka8
Retropinna retropinnaSmeltParaki6
Prototroctes oxyrhynchusGraylingUpokororo12
Cheimarrichthys fosteriTorrent-fish or shark-bullyPapanoko7
Gobiomorphus gobioidesBullyToitoi6
   Feet.
Anguilla australisShort-finned eelTuna3 to 4
Anguilla dieffenbachii (aucklandii)Long-finned eelTuna4 to 5
Geotria australisLampreyKoro-koro or kunakuna2

The “minnow,” smelt, grayling, and, of course, the eels and lamprey, are migratory fish which spend parts of their lives in the sea or in estuarine tidal waters, although at least one species of purely fresh-water smelt is known.

Acclimatized Fishes: Although most of the above-mentioned indigenous fishes—especially the eels, kokopu, and upokororo—provided an appreciable portion of the food-supplies of the Maoris, and have been a welcome addition to the camp provisions of surveyors, bushmen, and prospectors since the pioneering days, there were many among the early settlers to whom the New Zealand rivers and lakes appeared uninteresting and unproductive in comparison with their native salmon and trout streams. By means of private agency in some cases, and by more organized efforts on the part of Government and local acclimatization societies, attempts to introduce British salmon and trout were commenced in the early “sixties.” The brown trout was first established in 1867 by means of ova imported from Tasmania, where the species had been acclimatized a few years earlier from English stock. Importations of brown trout besides the Loch Leven and sea-trout varieties have been subsequently made, so that the species is now found in most of the fresh and tidal waters of New Zealand. Rainbow or steelhead trout, first introduced in 1883 from California, are also now widely distributed. In some lakes, notably Taupo and others in the Thermal Region, they have largely displaced the earlier brown-trout population. The American brook trout (Salvelinus fontinalis) was widely planted in the “seventies” and “eighties,” but is now found only in a few back-country streams in the South. The Mackinaw trout, or Great American Lake trout, has been naturalized in Lake Pearson, Canterbury, since 1906. Quinnat salmon, introduced from California in the first five years of the present century, after earlier attempts had failed, are now firmly established, and “runs” of these salmon take place annually between January and June in the larger East Coast rivers of the South Island. They have been taken in smaller and more variable numbers in a few rivers on the West Coast and in the Wellington District. Sockeye salmon, imported at the same time, have given rise to a “land-locked” stock in Lake Ohau, no sea-run examples of this species having yet been identified. The introduction of European Atlantic salmon was attempted at various times in the earlier years, and was finally achieved after 2,000,000 ova had been imported in 1910–12 from British and Continental rivers. The species is now established in the Waiau river system and associated lakes (especially Lake Te Anau) in Southland. It is remarkable that, although there is unimpeded access to the sea, the species has largely adopted “land-locked” habits, most of the fish remaining to feed in fresh water until and after they have reached maturity. Relatively small numbers, however, enter the Waiau from the sea.

Besides the above-mentioned members of the salmon and trout family, other species of fish from the Northern Hemisphere which have been acclimatized in New Zealand are the European perch, tench, and carp, the North American catfish (Ameiurus catus), and the small viviparous Gambusia patruelis introduced about 1930 for its utility as a devourer of mosquito-larvæ.

With the exception of the Rotorua Acclimatization District in the thermal-lakes region and the recently constituted Southern Lakes District in the South Island, which are under the control of the Department of Internal Affairs, the local administration and management of fresh-water fisheries are in the hands of acclimatization societies.

A fishing licence, for which the fee is £1 10s. for the season, enables the holder to fish for acclimatized fish in any part of New Zealand except the Rotorua Acclimatization District (which includes the Taupo Trout Fishing District) and the Southern Lakes Acclimatization District. For fishing in the Rotorua area and the Southern Lakes District the local licence fee is £1 5s. for all male adults, but in the Taupo area of the Rotorua Acclimatization District, which is the most popular of all New Zealand angling resorts, the licence fees for the whole season are £1 10s. for residents in the area, £2 for other residents of New Zealand, and £6 for overseas visitors. For all acclimatization districts there is a reduced scale of licence fees for female and juvenile anglers. Half-season, monthly, weekly, week-end, daily, and single-river licences are also available.

Chapter 21. SECTION 21—MINING

Table of Contents

THE law relating to mining and quarrying is contained in the Mining Act, 1926, the Coal-mines Act, 1925, the Coal Act, 1948, the Petroleum Act, 1937, the Quarries Act, 1944, and the Atomic Energy Act, 1945. There have been numerous amendments to these Acts, the most recent of which are the Mining Amendment Acts of 1947 and 1948, and the Coal-mines Amendment Acts of 1949 and 1950. The Coal-mines Amendment Act of 1950 provides for the return to their previous owners of all coal and servitudes vested in the Crown by the Coal Act of 1948, but also ensures a greater measure of control of the working of privately-owned coal than that previously exercised.

MINERAL PRODUCTION.—The following statement shows the production of metals and minerals during 1948 and 1949.

Mineral.1948.1949.
Quantity.Value.Quantity.Value.
Furls
  £ £
Coal2,775,886 tons4,823,1022,813,275 tons5,907,878
Petroleum (crude)83,112 gals.2,597236,463 gals.7,389
Metals
Gold93,903 oz.896,17384,874 oz.836,001
Silver232,563 oz.53,587232,599 oz.54,587
Antimony-ore9 tons2485 tons209
Arsenic8 tons14419 tons344
Iron-ore4,776 tons10,0624,352 tons9,727
Copper-ore  13 tons28
Tungsten-ore25 tons9,80025 tons7,882
Manganese-ore525 tons2,487305 tons1,879
Non-metallics
Bentonite624 tons4,462456 tons3,341
Clay for bricks, tiles, &c.159,129 tons37,209157,910 tons36,109
Clay for pottery, fillers, &c.17,402 tons16,27214,672 tons7,934
Diatomite103 tons14394 tons59
Dolomite6,912 tons3,4564,210 tons2,105
Fuller's earth68 tons200  
Limestone, marl, &c., for cement417,660 tons68,454465,026 tons89,208
Limestone for agriculture1,091,299 tons473,7091,100,126 tons554,468
Limestone for industrial uses69,068 tons28,56343,901 tons22,747
Sand, gravel, &c., for loads and ballast2,015,354 tons608,1402,509,576 tons822,177
Sand, &c., for building aggregate396,812 tons141,504440,697 tons150,315
Dimension stone for building22,319 tons34,3805,482 tons6,698
Rock for harbour-work63,059 tons10,63366,269 tons12,594
Magnesite540 tons378559 tons391
Pumice6,863 tons4,95513,124 tons6,845
Quartzite26 tons1319 tons19
Serpentine38,637 tons10,44754,435 tons17,057
Silica sand16,536 tons44,77420,401 tons59,032
    Totals 7,285,892 8,617,023

Kauri-gum, the (chiefly) fossilized resin of former kauri forests, is counted as a mineral, but is not included in the above table.

The next statement shows the value of New Zealand minerals and allied substances exported during the years stated.

Mineral.1947.1948.1949.Total from 1st January, 1853, to 31st December, 1949.
 ££££
Gold1,026,225594,387598,245118,784,202
Silver24,93636,01919,2963,855,829
Tungsten-ore5,97514,23410,895568,196
Antimony-ore 380 55,700
Mercury   41,319
Other minerals17,14212,80111,572716,894
Kauri-gum120,256109,802102,87724,639,084
Coal (including bunker)77,43054,96371,6598,498,622

GOLD-MINING.—The gold-mining industry, which in its early stages contributed greatly to the progress and settlement of New Zealand, but which declined in importance with the exhaustion of the most accessible alluvial-gold deposits and of ore from the zones of enrichment, again came into prominence in the years immediately prior to the war on account of the enhanced price of gold and the revival of gold-dredging.

Gold-dredging possibilities presented an entirely new aspect not only on account of the price of gold, but also on account of the greater depths to which modern machines can work and their low cost of operation per cubic yard. The link-up of the West Coast in recent years with the main hydro-electric scheme of the South Island has been of special importance to dredging concerns by ensuring for the industry an adequate supply of cheap power.

The number of productive dredges operating in 1949 was nine, six of which were situated on the west coast of the South Island and three in Otago. While production of gold by dredges is expected to continue at the present level for some years no marked expansion is possible seeing that the greater part of the ground suitable for dredging is now either under active or prospective exploitation.

Quartz-mining is now practically confined to the operations of the Martha Mine at Waihi and of the Blackwater Mine on the west coast of the South Island.

Alluvial-mining now occupies a relatively minor place in New Zealand gold-mining, and is confined to the west coast of the South Island and to Otago and Southland.

Since 1940 there has been a steady decline in the production of gold. Naturally, the decreased importance of gold-mining to the community during the war period has been responsible for man-power problems and difficulties in securing equipment, and the result has been reduced production and discouragement of fresh enterprise. These difficulties were further accentuated by rising costs in the post-war years, but tax remissions to the extent of 34s. 8d. per ounce made by the Government, to meet such costs and the increased price of gold consequent upon the devaluation of sterling, have materially improved the position. The following table gives particulars of the estimated gold content of gold/silver/bullion production for the last three years.

Quantity.Value.
1947.1948.1949.1947.1948.1949.
 oz.oz.oz.£££
Quartz-mining37,49637,13536,432401,327372,610347,208
Alluvial-mining3,2332,1241,44233,22720,33413,406
Dredge-mining71,53154,64447,000775,983503,229475,387
    Totals112,26093,90384,8741,210,537896,173836,001

SILVER.—Nearly the whole of the locally produced silver exported from New Zealand has been obtained from the refinement of bullion from the quartz-mines of the Hauraki goldfield, where gold and silver are found alloyed, the ratio of the two metals in the alloy varying greatly. No other silver-mining operations have been carried out profitably in New Zealand. Silver production in 1949 amounted to 232,599 oz., as compared with 232,563 oz. in 1948 and 221,984 oz. in 1947.

IRON-ORES.—The two main sources of iron available in New Zealand are the iron-ore deposits of the Onekaka region, Golden Bay, in the Nelson Provincial District; and the ironsands which are largely concentrated on the beaches of Taranaki, though not limited to that district.

As the result of a systematic prospecting programme of tunnelling and boring carried out by the State during the years 1938 to 1942, the ore reserves of the Onekaka deposits are estimated at 9,500,000 tons, assaying 40 per cent. iron.

Although the whole of New Zealand's iron-bearing sands have not been surveyed, there is no doubt that the total quantity is enormous. As a result of prospecting operations by the State, the titaniferous ironsands in the vicinity of Patea have been estimated as amounting to 45,500,000 tons, assaying 21 per cent. soluble iron, which, by magnetic separation, would yield 14,500,000 tons of concentrates assaying 53 per cent. soluble iron. Preliminary investigation at Wanganui and at Waitara has shown great quantities of sand, but of lower iron content, while deposits at Mokau, Awakino, and Manukau still await investigation.

Many attempts have been made to smelt Taranaki ironsand, but commercial success has not attended any of these efforts. Difficulty has been experienced owing to the fineness of the sand and also to the presence of titanic acid. However, it is considered possible that these sands can be economically smelted if mixed in the proportion of 1 part of sand to 4 of Golden Bay ore. In 1949 large-scale tests on the smelting of ironsands by means of an electric furnace and the use of char obtained from sub-bituminous coal were carried out at Onekaka under the supervision of overseas experts. The tests showed that pig-iron suitable for conversion to steel could be obtained from Taranaki ironsands by this means.

There has been a small annual production of iron-ore from the Onekaka deposits and certain small deposits in the North Auckland district for use in gas purification, the preparation of stock-licks, and in the cement industry. Production for these uses amounted to 4,352 tons in 1949, as against 4,776 tons in 1948.

TUNGSTEN.—The principal ore of tungsten in New Zealand is scheelite, though a little wolfram is found in Otago and Stewart Island, but not in economic quantities.

Scheelite occurs at numerous points frequently associated with gold in quartz-veins traversing the schists of Otago and Marlborough. It has also been identified in finely divided form in the concentrates from the gold-saving tables of dredges operating on the west coast of the South Island.

The scheelite-bearing quartz-veins are generally small and broken, while the scheelite is most erratically distributed in the veins, with the greatest concentration of scheelite situated close to the surface or at shallow depths. Further, many of the lodes occur at high altitudes, which allows of only a short working-season; access and transport present difficulties, and production costs are relatively high.

With the exception of one small parcel obtained from Macrae's Flat, production in 1949 was confined to the Glenorchy field. Other producing centres in Otago have been Stoneburn, Hyde, Barewood, and Waipori.

In view of the importance of scheelite as a strategic war mineral, the State during the war assisted private producers to develop claims, while, in addition, it inaugurated a major development programme at two of the main mines in the Glenorchy district. All concentrates produced in New Zealand from the outbreak of the war up to 30th June, 1945, were purchased by the Imperial Government at prices satisfactory to the producers. Since 30th June, 1945, the sale of scheelite concentrates has reverted to the open market.

Production of scheelite concentrates, calculated to the basis of 65 per cent. WO3 per ton, has been 145 tons in 1944, 34 tons in 1945, 27 tons in 1946, 22 tons in 1947, 25 tons in 1948, and 25 tons in 1949, the value of production in 1949 being £7,882. The total quantity of locally produced o e exported to 31st December, 1949, was 3,426 tons, valued at £568,196.

COPPER.—Ores of copper are found in New Zealand in no fewer than thirty-two localities, but during the last seventy years attempts at their successful exploitation have been unprofitable.

After many years of inactivity, mining was resumed during 1946, when operations were commenced at a copper-ore occurrence at Pakotai, in North Auckland. It was not, however, until 1947 that it was possible to make a shipment to Australia for smelting, when a parcel of 580 tons, averaging approximately 13 per cent. of copper, 3 dwt. of gold, and 33 dwt. of silver per ton, realized £6,255. In order to assist in determining whether sufficient ore existed to warrant the purchase of a furnace, a drilling programme was carried out by the Mines Department, while a geophysical survey of the area was carried out by the Department of Scientific and Industrial Research. The results of these surveys were disappointing in not disclosing ore reserves of any magnitude, but mining operations were resumed in 1949, and another parcel of 611 tons of ore of similar grade to that of the first shipment was exported to Australia in 1950.

The total recorded copper export to the end of 1949 amounted in value to only £25,700, but it is estimated that the total production to the end of 1949 has amounted to 5,626 tons, valued at £116,161.

MANGANESE.—Manganese-ores are found in many localities, chiefly in the older sedimentary rocks. At Tikiora Hill (near Russell), at Parua Bay (near Whangarei), and especially at Waiheke Island, manganese deposits were mined many years ago, while of recent years there has been some production from deposits at Bombay, Moumoukai, and Otau, all in the Auckland district. Deposits are, however, generally small and shallow and capable of producing only limited tonnages of ore. During 1949, 305 tons, valued at £1,879, were produced from the Otau deposit, as against 525 tons, valued at £2,487, from the same deposit in 1948.

The total quantity of locally produced manganese ore exported to the end of 1949 amounted to 21,588 tons, of a value of £70,867.

MERCURY.—Cinnabar, the principal ore of mercury, is widely distributed in New Zealand, but only in few localities is it found in quantities of economic importance. The most promising deposits of mercury-ore in New Zealand are those of the Puhipuhi district, where for many years efforts have been made to place the production of the metal on a commercial basis. During the war these efforts were revived and production recommenced, the ore being obtained by opencast mining and the mercury recovered in a modern treatment plant with a capacity of 50 tons of ore per day.

Owing to the drastic slump in the price and the need for additional earth-moving equipment, operations were discontinued in 1945. The total production from Puhipuhi during the war period was 33,204 lb. of an estimated value of £32,479.

The total quantity of mercury of New Zealand origin exported up to the 31st December, 1949, was 111,838 lb., valued at £41,319.

ANTIMONY.—The present high price ruling for antimony-ores has again directed attention to the deposits of these ores in Central Otago, and prospecting operations are being earned out at Mount Stoker in the Nenthorne Survey District, 5 tons of ore being obtained from these operations in 1949, as compared with 9 tons in 1948.

TIN.—Cassiterite in the form of “stream tin” occurs near Port Pegasus, Stewart Island, and has been worked to some extent, though the deposits are of small extent. “Lode tin” has been found in the same locality, but the deposit is not of economic value. Small quantities of cassiterite have also been detected in the stream-gravels of the Reefton, Greymouth, and Westport districts. Among other localities in which traces of tin occur are Wet Jacket Arm (Otago) and Campbell Island.

PLATINUM.—In the published lists of minerals of New Zealand platinum is stated to occur in several places, associated generally with gold in gravel. It is only from Southland, however, that platinum has been exported, but quantities produced have been insignificant, and of late years negligible. There has been no production since 1946 when 14 oz. were produced.

URANIUM.—A concentrated search for uranium-ores has resulted in the discovery that some of the auriferous gravels and sands of the west coast of the South Island contain a small proportion of uranium bearing materials, in particular, uranothorite and monazite. These accumulate in greater concentration upon the gold-saving tables of the dredges, and it is considered that they may be regarded as a possible source of uranium. Investigation of other possible sources of uranium is still proceeding.

The mining and treatment of the ores of uranium and other elements which may be used for the production of atomic energy are now controlled by the provisions of the Atomic Energy Act, 1945.

SULPHUR.—Native sulphur occurs in the thermal districts of the North Island near Rotorua and Lake Taupo, and at White Island, but prospecting work has shown that there is not sufficient quantity to enable the deposits to be economically worked.

While there has been no production of sulphur for many years, exports of New Zealand origin in the past have amounted to an aggregate value of £13,241.

ASBESTOS.—Chrysotile-asbestos occurs at several points in the massive serpentines of Nelson and Otago, but the only deposits of importance so far located are those of Upper Takaka in the Nelson district. While these deposits have long been known, difficulties of access have prevented prospecting and exploitation, but of recent years an all-weather motor road has been formed giving access to the area. An experimental treatment plant has been installed, and a systematic prospecting programme of driving and crosscutting carried out. This programme was completed early in 1945, when active development was suspended. Operations have, however, been recently resumed.

COAL.—Coal in New Zealand has for many years been mined in certain well defined areas, beyond which no coal is known to exist in any significant quantities. The major coal fields, with the class of coal found in each are:—

  • Bituminous Coal (Coking): Greymouth, Westport (Buller Coalfield).

  • Sub-bituminous Coal (Non-coking): Waikato (including North Taranaki), Otago (Kaitangata), Southland (Ohai, &c.), Reefton.

  • Lignite (Non-coking Low Grade): Southland (Mataura, &c.).

  • Minor coalfields from which coal is being mined, but which cannot be expected to provide an important contribution to our coal resources are: —

  • Sub-bituminous Coal: North Auckland (Hikurangi, Kamo), Nelson (Puponga, Westhaven).

  • Lignite: Canterbury (numerous small deposits), Otago, Charleston (Westport).

In recent years, the investigation of coal resources has been carried on by three organizations working in close co-operation. These organizations are (1) The Coal Survey, whose activities are mainly geological and chemical; (2) an organization set up by the Mines Department to follow up the Coal Survey with detailed topographical surveys and shallow prospecting by means of cuts, pits, and hand drilling; (3) the drilling section of the Mines Department carrying out investigations by deep-core drilling.

As a result of the intensive work of these organizations during the past four years, considerably more information is now available than was the case in 1946 when the last estimate of the coal resources of New Zealand which appeared in the Mines Statement for the year 1945 was made. This matter has lately been considered jointly by officers of the Geological Survey and Mines Department, and a new estimate has been prepared based on information obtained from the Mines Department as to reserves of operating coal-mines and of closely drilled areas and from the Coal Survey as to reserves of the districts surveyed. The classification accepted—“measured,” “indicated,” and “inferred”—is that used by the United States Bureau of Mines and the Commonwealth Mineral Resources Survey. These terms are simply defined as follows: —

  1. “Measured coal” is coal for which tonnage is computed from dimensions revealed in outcrops, trenches, workings, and drill holes and for which the grade is computed from the results of detailed sampling. The sites for inspection, sampling, and measurements are so closely spaced and the geologic character is defined so well that the size, shape, and content are well established. The computed tonnage and grade are judged to be accurate within limits, and no such limit is judged to differ from the computed tonnage or grade by more than 20 per cent.

  2. “Indicated coal” is coal for which tonnage and grade are computed partly from specific measurements, samples, or production data and partly from projection for a reasonable distance on geologic evidence. The sites available for inspection, measurement, and sampling are too widely or otherwise inappropriately spaced to outline the coal completely or to establish its grade throughout.

  3. “Inferred coal” is coal for which quantitative estimates are based largely on broad knowledge of the geological character of the deposit and for which there are few, if any, samples or measurements. The estimates are based on an assumed continuity or repetition for which there is geologic evidence: this evidence may include comparison with deposits of similar type. Bodies that are completely concealed may be included if there is specific geologic evidence of their presence.

Although these terms are fairly close to the original terms:— “proved,” “probable,” and “inferred”—it was considered better to use the clearly and specifically defined terms as above that now have wide international acceptance.

The figures in all cases represent recoverable coal and not coal in ground.

The following are the total coal resources of New Zealand based on all available information at date (1950):—

Measured.Indicated.Inferred.
 Tons.Tons.Tons.
Bituminous28,000,00021,000,00058,000,000
Sub-bituminous52,000,00045,000,000502,000,000
Lignite13,000,00027,000,000366,000,000
    Totals93,000,00093,000,000926,000,000

It will be noticed, when compared with 1946 figures, that measured bituminous has increased, largely as a result of close drilling on the Buller field, and that a figure for inferred bituminous is presented. In both sub-bituminous and lignite the previous large quantities of proved coal have been considerably reduced simply because there was no evidence to support such figures as measured coal according to the definition of this term. In both cases, inferred resources have been shown, which in 1946 were confined to sub-bituminous. The over all total of 1,112,000,000 tons is fairly close to the previous 1946 estimate (1,158,436,000 tons).

From time to time concern has been expressed that reserves of measured, recoverable coal are of so low an order in New Zealand. It must, however, be recognized that to establish reserves of this type it is necessary either to block them out by underground development or to define them by close boring, and sound mining practice demands that such reserves should bear some relationship to the scale of the industry and the annual production required. Actually, measured reserves of coal in each class, bituminous, sub-bituminous, and lignite, are sufficient to maintain the present rate of production for a term of years far in excess of those demanded by recognized mining practice, and it is accordingly questionable whether, from some aspects, reserves are accordingly too high rather than too low and there is no justification for the concern expressed.

The rise in inferred lignite and sub-bituminous is the result of work in the Ohai and Kaitangata fields. It is considered that these figures represent a more realistic picture than did those of 1946.

The following table shows the quantitative groupings in the various coalfields of New Zealand, set out under the three rank divisions:—

Measured.Indicated.Inferred.
 Tons.Tons.Tons.
Bituminous
Buller14,000,0006,500,00024,300,000
Murchison  1,500,000
Garvey Creek1,000,0002,300,0002,200,000
Greymouth13,000,00013,000,00030,000,000
    Totals28,000,00021,800,00058,000,000
Sub-bituminous
Northland1,300,0001,700,0003,000,000
Huntly32,000,00018,000,00065,000,000
Maramarua5,000,00015,000,00020,000,000
Mangapehi1,500,000500,0001,000,000
Tatu300,000400,000 
Waitewhena400,000 12,000,000
Mokau  60,000,000
Nelson200,000 2,000,000
Buller Gorge  1,000,000
Reefton1,000,0002,700,0005,000,000
Fletcher Creek  3,000,000
Punakaiki  2,000,000
Kaitangata 6,000,000227,000,000
Ohai11,000,0001,000,000100,000,000
Orepuki  1,000,000
    Totals52,700,00045,300,000502,000,000
Lignite
Charleston6,000,0002,000,0008,000,000
Canterbury250,000 20,000,000
North Otago250,000 2,000,000
Central Otago250,000 15,000,000
Green Island250,000 3,000,000
Kaitangata1,000,0005,000,000156,000,000
Pomahaka  10,000,000
Mataura Valley5,000,00020,000,000152,000,000
    Totals13,000,00027,000,000366,000,000

The following table summarizes coal-mining operations—

Year.Output, (Tons).Persons Ordinarily Employed.Lives Lost by Accidents In or About Collieries.
Surface.Under-Ground.Totals.Per Million Tons Produced.Per Thousand Persons Employed.Lives Lost.
Prior to 194195,336,168     526
19412,639,5071,3583,6334,9911.510.804
19422,680,0411,3383,6594,9972.241.206
19432,787,8681,3753,9995,3742.871.508
19442,805,9701,6373,9585,5954.282.1412
19452,833,5761,6603,9325,5922.121.076
19462,793,8701,7383,8195,5571.430.724
19472,751,7251,7033,7395,4421.430.734
19482,775,8861,7403,8425,5821.800.905
19492,813,2751,8684,0095,8771.070.513
    Totals120,217,886     578

The output of the several classes of coal mined in each inspection district during 1949 can be stated as follows:—

Class of Coal.Northern District (North Island).West Coast District (South Island).Southern District (South Island).Total.Total Output to 31st December, 1949.
 Tons.Tons.Tons.Tons.Tons.
Anthracite  1,8851,88520,562
Bituminous 934,802 934,80263,273,177
Sub-bituminous1,073,058138,632366,2181,577,90849,197,697
Lignite 35,092263,588298,6807,726,450
  Totals for 19491,073,0581,108,526631,6912,813,275120,217,886
  Totals for 19481,015,1881,143,879616,8192,775,886117,404,611

The total output of coal in 1949 (2,813,275 tons) has been exceeded on only one occasion—viz., 1945—when 2,833,576 tons were produced. During 1949, 175 mines were in operation. Of these, 56 operated wholly or principally on freehold land and the remaining 119 wholly or predominantly on Crown land. Output from freehold land was 1,134,536 tons (40 per cent.) and output from Crown land 1,678,739 tons (60 per cent.), these proportions being similar to those recorded in the previous year. Production from underground mines in 1949 amounted to 2,071,288, and from opencast mines 741,987 tons.

Underground Mines.—The following table gives particulars of the operations of underground mining during the last eleven years.

Calendar Year.Output. (Tons).Men Employed Underground.Tons Per Man Underground.Men Employed on Surface.Tons Per Man on Pay-roll.
19392,296,0073,5426481,164488
19402,465,3363,7696541,241492
19412,585,3243,6337121,325521
19422,624,2673,6597171,291530
19432,725,8313,9996821,329512
19442,609,5163,9586591,395489
19452,380,8963,9326061,328453
19462,265,1703,8195931,313441
19472,107,0333,7395641,271421
19482,099,1583,8425461,285409
19492,071,2884,0095171,368385

Commencing with the year 1939, there was a sustained increase in the output per man employed underground up to and including 1942, since when there has been an unbroken series of decreases. The fall between 1942 and 1949 is no less than 200 tons, or 27.8 per cent. The introduction of a seven-hour day early in 1948, instead of eight hours as formerly, is responsible for part of this decrease, but other contributory factors have been the shortage of experienced men and the more difficult mining conditions and longer haulages that have been encountered in some of the older mines. Of late years the output per hewer shift has remained remarkably constant, and the inference is that the over-all decrease is due to the greater number of men required in maintaining services and in transporting coal from the face to the surface. The Mines Statement (parliamentary paper C–2) for the year 1949 states that to maintain production at the present level and to meet the gradually increasing demand, it is essential that new mines be opened up to replace those approaching exhaustion, and development programmes to achieve this object have been planned.

Opencast Mines.—In recent years this form of coal-mining has played an increasingly important part in coal-production in New Zealand. The high percentage of coal recovered and the elasticity afforded to coal-production by this method are only two of the many favourable aspects of this form of mining. Development in the earlier war years was considerably retarded by the lack of necessary equipment, such as mechanical strippers and excavators, and in 1943 the quantity of coal produced by the opencast method was only 62,037 tons, or 2.2 per cent. of total production. In the following year the output was trebled, and each successive year has recorded a substantial increase, the quantity in 1949 being 741,987 tons, or 26.4 per cent. of total production. There were fifty-two opencast mines in operation in 1949, and of these, eight operated by the State produced 382,714 tons. All of these State mines have come into production since the beginning of 1944. The progress of opencast mining during the last eleven years is illustrated by the following table.

Year.Output, in Tons.Men Employed.Tons Per Man Employed.
193946,63256833
194050,763361,410
194154,183331,642
194255,774471,187
194362,037461,349
1944196,454242812
1945452,6803321,363
1946528,7004251,244
1947644,6924321,492
1948676,7284551,487
1949741,9875001,484

The Government is keeping abreast of latest developments in regard to the production of oil from coal by the hydrogenation and the low-temperature carbonization processes. During 1949 considerable progress was made in systematic field surveys and mapping of the coal resources of New Zealand, combined with research work in State laboratories into the physical and chemical properties of the various coals. A large amount of investigation into fuel problems was also carried out, and many analyses of coal and other fuel samples were made.

Low-temperature carbonization works, using the Lurgi process, established at Rotowaro, 70 miles south of Auckland, in 1931, produced during 1949, 13,715 tons of carbonettes, 249,338 gallons of tar and oil, 361 tons of pitch, and 829 tons of char from 25,857 tons of slack coal, which was part of the output of a group of local mines.

The Sockburn plant, near Christchurch, produced during 1949, 33,634 gallons of tar.

In order to reduce the economic waste caused by unmarketable slack produced at mines, an amendment to the Coal-mines Act was passed in October, 1935. This enactment gave the Minister of Mines authority to purchase and store slack, to acquire the necessary plant for its treatment, and to manufacture and sell any fuel or other products. In 1936, at the instigation of the Minister of Mines, the coalowners in the Waikato district installed screens of a smaller mesh than those formerly in use, and practically all slack made at these mines since then has been disposed of. Similarly, the Southland and Otago coalowners have also adopted a smaller screen mesh.

Subsidy on Coal-production.—In May, 1940, coal-miners were granted increases of 5 per cent. in the rates for contract workers and 7½ per cent. in day-wages rates. This, with similar increases to colliery officials, was estimated to cost 1s. 1d. per ton on coal-production. Just prior to that date the Price Tribunal had examined applications to increase selling-prices of coal on account of the higher prices of colliery stores, and had advised the Government that costs had risen 5d. per ton on this account.

In accordance with its policy of stabilizing prices during the war period, the Government decided to subsidize mineowners to the extent of 1s. 6d. per ton to cover the increased cost of wages and stores, and thus avoid an increase in the selling-prices of coal. As the result of further increases of 5 per cent. in piece-work rates and 13.8 per cent. in wage rates as from 1st May, 1942, the Government introduced an additional subsidy on coal-production ranging from 6d. per ton to 2s. 7d. per ton, according to the localities in which mines were situated, and costs of production. Later, further subsidies of varying rates were granted to offset increases in production costs. Shipping companies were also granted a subsidy of 2½ per cent. on freight rates, which was later merged in the general subsidy of 15 per cent. payable through the Marine Department. The amount of subsidy paid to the coal industry for the financial year 1949–50 was £2,889,767, and, from the introduction of this subsidy in May, 1940, to 31st March, 1950, the total amount paid to the industry was £11,017,685. Of the amount paid in 1949–50, £1,751,028 was in respect of State coal-mines and £1,138,739 in respect of privately owned mines.

Since 8th May, 1950, as part of Government policy, payment of all subsidies in respect of coal-production has been withdrawn.

Coal Utilization.—The approximate distribution of coal-consumption during each of the four years 1946–49 is shown in the following table. The total quantity is based on actual production in each year plus imports and minus exports (including bunker coal for overseas vessels). Where the information is available, adjustments have been made for stocks on hand at the beginning and end of the year.

1946.1947.1948.1949.

* Includes hospitals, hotels, &c.

 Tons.Tons.Tons.Tons.
Railways616,000592,000577,000552,000
Coastal shipping85,00073,00077,00055,000
Gasworks315,000323,000323,000311,000
Factories*1,237,0001,226,0001,200,0001,288,000
Households540,000597,000620,000640,000
    Total consumption2,793,0002,811,0002,797,0002,846,000

State Collieries.—The Coal-mines Act, 1901, provided for the purchase and working of State coal-mines in New Zealand under the direct control of the Minister of Mines. At 31st March, 1950, there were twenty-seven State collieries working. This excludes Kemp's State Opencast Mine which was worked out during 1949.

The outputs of marketable coal produced from State coal-mines for the last two financial years are shown below:—

Mine.Output, in Tons.
1948–49.1949–50.Increase, Tons.Decrease, Tons.

* Mine ceased operations (worked out) in June, 1949.

† Mine commenced operations in April, 1949.

‡ Operations in No. 1 area completed in December, 1949.

§ Mine acquired on 1st May, 1949.

|| Mine acquired on 21st March, 1949.

¶ Mine commenced operations on 4th October, 1948.

Kamo50,07256,8076,735 
Kemp's Opencast*68,08412,125 55,959
Hillcrest Opencast 48,25348,253 
Kimihia Opencast78,34035,953 42,387
Wilton90,98585,249 5,736
Mangapehi36,21037,2251,015 
Tatu29,53536,4006,865 
Waitewhena Opencast42,93239,199 3,733
Denniston66,32066,045 275
Millerton58,87451,599 7,275
Stockton Mine and Opencast209,741191,551 18,190
Burke's Creek19,61218,907 705
Garvey Creek12,45114,7822,331 
Burnwell§ 3,3763,376 
Central||684,2944,226 
Blackball68,57467,635 939
Dobson67,23071,7484,518 
Paparoa26,86530,5003,635 
Wallsend53,86852,780 1,088
Liverpool90,22097,4007,1.80 
Strongman82,30094,26011,960 
Wangaloa Opencast45,46241,111 4,351
Birchwood21,63322,7901,157 
Black Diamond Opencast35,76942,2426,473 
Mossbank24,79024,981191 
Star33,28539,1575,872 
McLean's Opencast8,72843,69034,962 
Wairaki61,73060,941 789
Totals1,383,6781,391,000148,749141,427

The average number of persons employed in and about State mines during the year ended 31st March, 1950, was—underground, 2,181; surface, 1,005; total, 3,186. Surface workers include 195 employed at the eight State opencast mines operated during the period. During the year ended 31st March, 1949, the men employed at State mines totalled 3,125.

Sales of coal, &c., through the medium of the depots totalled 1,159,054 tons (value £2,552,233) for the year ended 31st March, 1950. This compares with 1,086,007 tons (value, £2,162,318) for the year ended the 31st March, 1949, and 822,306 tons (value, £1,488,105) for the previous year.

PETROLEUM.—Indications of the presence of petroleum are found on the surface in North Auckland, at Moturoa near New Plymouth and elsewhere in Taranaki, over wide areas on the eastern coast of the North Island, and in the South Island at Kotuku, near Murchison, and in the Cheviot district. In earlier years drilling had been carried out in Taranaki, Hawke's Bay, Canterbury, Southland, and Westland, the deepest hole being at Moturoa, near New Plymouth, which attained a depth of approximately 6,000 ft. Petroleum of good quality was proved to exist, but only in limited quantity.

After the passing of the Petroleum Act, 1937, as amended by section 55 of the Statutes Amendment Act, 1939, and sections 59 to 63 inclusive of the Statutes Amendment Act, 1941, considerable interest was displayed by some of the major oil organizations, and practically all the potential oil-bearing lands in New Zealand were held under petroleum prospecting licences.

A great amount of geological and geophysical work was carried out on licensed areas by expert staffs using the most modern equipment. In addition to many thousands of feet of core-drilling for geological and geophysical purposes, thirteen deep holes were drilled on favourable structures located by the geological work. The deepest hole attained a depth of 10,925 ft., and the total footage drilled amounted to 73,565 ft. The results of this drilling were consistently disappointing, as all the wells proved dry. All the operating companies have now ceased work, and the licences held by them under the Petroleum Act have been surrendered. At one time five companies held forty-seven licences covering 7,541 square miles, but at the present moment only one licence is current, covering 10 square miles.

Drilling operations in the Moturoa field were resumed during 1948 by New Zealand Oil Refineries, Ltd., and the Dobson No. 1 well was completed early in 1949 at a depth of 2,236 ft., oil-bearing sands being passed through between 2,222 ft. and the bottom of the hole with oil flowing under its own gas pressure at the rate of 1,200 gallons per day.

During 1949 a production of 236,463 gallons of oil was obtained from the New-Zealand Oil Refineries Co.'s wells at New Plymouth, compared with 83,112 gallons in 1948. The total production of crude petroleum to the 31st December, 1949, is estimated at 3,986,316 gallons.

BENTONITE.—The most promising deposits of this mineral occur at Porangahau, in the Hawke's Bay district. Bentonite is mainly used in the preparation of foundry-moulding sands, but the mineral has many other uses. With the installation of a treatment plant, bentonite in a marketable processed form is now available instead of the crude lump, sun-dried form previously produced. It is expected that production will be increased in consequence of the expanded market available. During 1949, 456 tons of bentonite were produced, of a value of £3,341. The total quantity produced to the end of 1949 was 3,049 tons, of a value of £16,616.

KAURI-GUM.—Production of kauri-gum has decreased in recent years. The industry suffered a severe setback through the restriction of European markets during the period of the First World War; and, while some recovery was made in the five years immediately following the war, trade in this commodity has since been at a comparatively low level.

A system of control of the trade in and export of kauri-gum was provided by the Kauri-gum Control Act, 1925. The Finance Act (No. 2), 1933, provided for the repeal of the Control Act. The property of the Kauri-gum Control Board was vested in the Crown, the Minister of Lands taking over the powers and obligations of the Board. The Internal Marketing Division of the Marketing Department since 1937, materially assisted kauri-gum diggers by arranging minimum prices for various types and qualities of gum, and by assisting in the marketing of their product.

During 1949, 1,046 tons of kauri-gum, valued at £102,877 were exported, the total quantity of gum exported to the end of 1949 being 454,157 tons, valued at £24,639,084.

PHOSPHATE.—The occurrence of phosphate has been reported from many localities in New Zealand, but so far the deposits of Clarendon and Milburn have proved to be the only ones of economic importance. From 1902 to 1924 these deposits were actively worked, and 141,843 tons of medium grade phosphate rock were produced.

During 1942 this field was examined in some detail by officers of the Geological Survey. A new phosphate-bearing horizon was located, and an extensive drilling programme carried out over both horizons. The results of this work were rather disappointing, but active mining commenced again in 1943. During the years 1943 and 1944, 7,488 tons of medium-grade phosphate rock were produced, while from 1943 to 1947 the production of low-grade phosphate rock amounted to 40,887 tons. The resumption of imports of rock phosphates from Nauru coincided with the exhaustion of the more favourable sections of the deposit, and operations were terminated early in 1947.

SERPENTINE.—Serpentine, which in the South Island forms vast rock masses in Nelson and Otago, and which occurs in smaller amounts in the North Island, is now of value to the fertilizer industry in the preparation of serpentine superphosphate. Production at first was mainly confined to the smaller occurrences in North Auckland owing to ease of access and transport, but production has now been commenced at much larger deposits near Te Kuiti, in the North Island, and near Mossburn, in the South Island. Production in 1949 amounted to 54,435 tons and in 1948 to 38,637 tons. To the end of 1949, 297,481 tons of serpentine had been mined.

GREENSTONE.—The mineral nephrite, the “pounamu” of the Maori, a deep-green semi-transparent mineral with dark opaque patches, more popularly known as one of the varieties of “greenstone,” occurs as rounded segregations in the talc or tale-serpentine rocks of the Griffin Range of north Westland. The principal supply is obtained from the gravels of the Arahura and Taramakau Rivers, and from gold-sluicing claims of the Kumara district. Some of this has been cut and polished in New Zealand for personal and other small ornaments; the remainder has been exported. Owing to the suspension of sluicing operations, this mineral is now in short supply.

SALT.—An entirely now departure in mineral production is at present in its initial stages at Lake Grassmere, in Marlborough, where it is planned to produce salt by the solar evaporation of sea-water. The low rainfall, long hours of sunlight, and the wind conditions make this locality the most suitable one in New Zealand for this purpose.

BUILDING AND ORNAMENTAL STONES.—New Zealand possesses a great variety of handsome and durable building-stones scattered throughout both Islands. In Auckland there are basalt, andesite, porphyrite, and quartz biotite-diorite, known in the building trade as Coromandel “granite,” a hard, coarsely crystalline rock, capable of taking a fine polish. In addition there are the Whangarei limestone and the Raglan stone, the former an excellent building-stone, the latter a good freestone. Taranaki has the hornblende andesites of New Plymouth and Mount Egmont, and Wellington the andesites of Ruapehu.

In Nelson there are the granite of Tata Island and Tonga Bay and the marble or crystalline limestones of the Pikiruna (Riwaka) Range. West Nelson and Westland are well provided with granites and limestones of good quality, well adapted for building purposes; and in the Griffin Range, north Westland, there is found an abundance of finely coloured serpentine, unsurpassed as a decorative stone. Building-stone is scarce in Marlborough, but Canterbury is well supplied, having an abundance of Lyttelton bluestone (andesite) and Mount Somers stone, a limestone of exceptional quality. In Otago there is an abundance of excellent building-stone, ranging from the well-known Oamaru stone to the granite, gneiss, and limestones of Fiordland, all close to deep water. In Southland there are the so-called Ruapuke “granite,” the norite of the Bluff, and the granites of Stewart Island.

The lower story of Parliament Buildings is constructed of Coromandel granite, and the upper stories of Takaka marble.

The following table relates to quarries under the Quarries Act and shows the output for the year 1949. The classification given in this table differs in certain minor instances from that given on page 388.

Northern.Hauraki.West Coast.Southern.
Quantity.Value.Quantity.Value.Quantity.Value.Quantity.Value.

* Includes value of marl (cement) below.

Number of men employed: Northern, 1,146; Hauraki, 250; West Coast, 108; Southern, 766.

 Tons.£Tons.£Tons.£Tons.£
Bentonite  4563,341    
Chalk      1,621811
Clay for bricks, &c.66,01210,2783,1551,201  40,85611,855
Clay for pottery, &c.30,7415,83168193  22,6929,590
Clay (other uses)      3915
Diatomite      9459
Dolomite    4,2102,105  
Limestone (cement)268,77242,960  88,467*8,87061,24824,499
Limestone (agriculture)362,175174,4432,3782,53139,37513,271696,198364,223
Limestone (industry)6,9764,669    1,8394,058
Marl, &c. (cement)    24,9781,53121,6351,422
Marble (industry)    3,2481,299  
Magnesite    559391  
Pumice5,8688176,9085,872    
Rock (harbour-works)      66,26912,594
Sand, gravel, &c., for roads and ballast1,319,116453,712273,019120,7658,934 908,507246,349
Sand (industry)      859428
Sand, &c., for building aggregate226,08967,85916,14910,712  197,60971,319
Serpentine  52,03511,057  2,4006,000
Silica sand  18,71156,932  1,9552,180
Stone (dimension) for building      5,4826,698
Stonedust (mines)    698986  
    Totals2,285,749760,569372,879212,604170,46929,8042,029,303762,100

The Quarries Act, 1944, which repealed the Stone-quarries Act, 1910, and its amendments, includes any place with a face of more than 15 ft. in depth, in which persons work in excavating any kind of material from the earth, with the exception of coal, gold, scheelite, or petroleum. It does not apply to any road or railway cutting, or to excavations for buildings, but does include any tunnel of more than 50 ft. in length, in the construction of which explosives are used.

PERSONS ENGAGED.—The following table shows the number of persons employed in or about mines and stone-quarries, during each of the last five years.

1945.1946.1947.1948.1949.
Metalliferous mines1,3881,1661,2081,058923
Coal-mines5,5925,5575,4425,5825,877
Stone-quarries1,7281,9602,1482,2152,270
    Totals8,7088,6838,7988,8559,070

Accidents in mining and quarrying operations in 1949, with 1948 figures in parentheses, resulted in three (5) deaths in coal-mines, four (nil) in metalliferous mines, and one (nil) in quarries. In addition, twenty-five (39) persons were seriously injured in coal-mines, two (1) in metalliferous mines, and three (2) in quarries.

STATE AID TO MINING.—State aid to mining in New Zealand is given in several forms—viz., (1) geological survey and bulletins; (2) financial aid to prospecting; (3) schools of mines; (4) subsidized roads to mining-fields.

During the year officers of the Geological Survey were chiefly engaged in regional geological survey as far as pressure of work permitted.

Regional surveys of the Motatau Subdivision, in North Auckland, and Hauroko Subdivision, Southland, have been completed, and the bulletins are in course of preparation.

Bulletins descriptive of the geology of the Dannevirke and Wanganui Subdivisions and of the Heaphy, Karamea, and Geraldine provisional one-mile sheets, as well as one of the coastal area between Bruce Bay and Haast River, await publication. Other sheets descriptive of West Coast geology are in course of preparation. A palæontological bulletin on the Tertiary and Recent Ostracoda of New Zealand also awaits publication.

Regional surveys in Southland, Hawke's Bay, and North Auckland are proceeding.

A district office at Ngaruawahia was established in September as headquarters for the detailed survey of the Waikato Coalfield. The survey of the Kaitangata Coalfield has advanced considerably and the supplementary survey of Ohai field is practically complete. Activity on the West Coast has been confined to Reefton, Garvey Creek, Fletcher Creek, and Punakaiki Coalfields. Several cyclostyled reports on the survey of the coalfields were issued during the year.

Systematic observation of wells and springs in the Rotorua-Taupo area was continued throughout the year, and a concentrated effort is under way, in co-operation with the Ministry of Works, to test the Wairakei areas as a possible source of steam for generation of electricity.

Water-supply problems for local and public bodies as well as for Government Departments and industrial and private supplies have been reported on throughout New Zealand. A paper on the “Conservation and Protection of Underground Water in New Zealand” was prepared for the International Water-supply Association.

The preliminary gravimetric survey of the North Island is completed, and indicates that the newly acquired gravimeter will prove an invaluable instrument for interpreting geologic structure.

Seismic and magnetic methods were employed to investigate dam-sites for the State Hydro-electric Department in both Islands and electric logging of drill-holes undertaken.

Additional investigations carried out daring the year included limestones at many localities throughout the country for agricultural lime and cement manufacture; grey-waoke and basalt for aggregate in the Waikato; sands for glassmaking and moulding in Canterbury and Otago; serpentine for the fertilizer industry at Wairere; clay for ceramics at North Auckland and Orepuke; bentonite for general purposes at Waimarama and Masterton district; greywacke for coastal and river protection at Kaikoura; clay and decomposed greywacke for bricks at Tawa Flat; tuffs for pozzolanas at Oamaru and To Kuiti; antimony at Alexandra and Bannockburn; copper sulphide at Waitahuna; diatomite at Middlemarch; ironsands at Cape Foulwind; suitability of rocks as aggregate with high and low alkali cement and with bituminous mixes.

The following is a summary of work carried out at the Dominion Laboratory during 1949 in connection with mining industries:—

Cement Industry Investigations.—In view of the possible expansion of cement-production, a survey of raw materials was put in hand by Geological Survey. Particular attention was given to the Huntly – Te Kuiti, Canterbury, Cape Foulwind, and Oamaru districts. The completion of the analyses of the many samples collected will provide the data necessary for deciding upon the most suitable location for a new works.

Blacksand Investigations.—In connection with the experimental trials at Onekaka for the production of iron from Taranaki ironsand by an electric furnace process, the preparation of a large quantity of ironsand concentrate became necessary. Analyses were made of these concentrates and also of raw materials proposed as fluxes, including limestones, sands, quartzites, and dolomites, while during the trials numerous analyses of sinters, slags, and irons had to be made. The Dominion Laboratory fitted out a chemical laboratory at Onekaka to enable urgent analyses to be done on the spot.

Preliminary surveys were also made of the ilmenite-bearing sands of the west coast of the South Island, which are of interest as a possible source of titanium dioxide for white pigment production.

A reconnaissance survey of blacksands of the North Island from Taranaki northwards was also carried out. Analyses of blacksand from several other sources, including Stewart Island and George Sound, were also made.

Glass-sand.—The possibility of obtaining from Parengarenga sand, by high-intensity magnetic separation, a grade of sand suitable for the manufacture of optical glass was investigated. Sands from Whitecliffs and Sheffield (North Canterbury) were also tested. The latter may be of value as a moulding sand.

Pozzolanas.—The addition of finely ground siliceous materials of a suitable type to cement for the production of pozzolanic cement is becoming common practice, particularly for dam-construction in the United States. The investigation of certain local volcanic tuffs for suitability for this purpose has reached the stage where the more promising materials have been sorted out for practical strength trials. Volcanic tuffs from Oamaru, Gisborne, and Waikato (ignimbrite) are now being specially studied.

Clays.—Examination of a number of clays, including fireclays associated with coal-seams, was made during the year. An information circular on North Auckland refractory clays was prepared.

Miscellaneous.—Among the many samples examined, mention may be made of diatomite, limonite for gas-purification, bentonite for export, limestones for agricultural use, and minerals for identification. A number of assays for gold and silver were made. Ores from Te Aroha were examined for lead, zinc, and silver content, and an ore from Reefton for antimony. A preliminary study of the use of greensand as a flux in the preparation of a phosphatic fertilizer by a fusion process was made, and experiments on a larger scale are being put in hand.

Coal.—The Coal Research Section of the Dominion Laboratory has analysed 1,427 samples, consisting mainly of drill cores, run-of-mine, and face samples.

As an aid towards the development of the mining industry the Government offers varied and liberal assistance to prospectors in the form of subsidies, expert and technical advice, use of plant, &c. Subject to the provisions of the Mining Act, the holder of a valid miner's right is entitled to prospect for gold or any other metal or mineral (except coal) on any Crown land. He may also obtain authority from the Governor-General to prospect on Maori land, and he may also prospect on private land with the consent of the owner. Wardens in mining districts and Commissioners of Crown Lands in other districts may, with the consent of the Minister of Mines, grant prospecting licences for coal.

Apart from the subsidy on coal-production referred to on page 397, the total expenditure by way of direct assistance to mining in the year ended 31st March, 1950, with 1949 figures in parentheses, was £3,225 (£4,874), of which £2,821 (£4,380) was advanced to promote and maintain coal-production, £128 (£120) to gold-mining, and £128 (£224) towards the production of scheelite. In addition, the Mines Department expended £37,783 (£39,746) in prospecting and development work.

For the education of prospectors and mining students seven schools of mines are subsidized by the Government, in addition to the Otago University School of Mines. The schools of mines are situated at Thames, Waihi, Huntly, Westport, Reefton, Runanga, and Ohai. The expenditure on these schools by the Government during the year ended the 31st March, 1950, was £13,708, as against £4,069 during the previous year.

The expenditure in the form of subsidies and direct grants upon roads and tracks to mining areas during the year ended 31st March, 1950, amounted to £2,417, as compared with £6,880 during the previous year.

Board of Examiners.—The Board of Examiners annually conducts examinations of candidates for certificates as first-class and second-class mine-managers, battery-superintendents, and dredgemasters under the Mining Act, and for certificates as first-class and second-class mine-managers, mine-surveyors, and electricians under the Coal-mines Act. Examinations of candidates for certificates as underviewers and firemen-deputies under the Coal-mines Act are held at intervals when necessary. No candidate is permitted to present himself for examination unless he holds an authority from the Secretary to the Board of Examiners. Forty-four certificates were issued in 1949.

Coal-miners' Relief Fund.—The Coal-mines Act, 1925, required the owner of every coal-mine to contribute ½d. per ton on all coal sold, for the relief of coal-miners who may be injured while working, and for the relief of the families of coal-miners who may be killed or injured.

Section 4 of the Coal-mines Amendment Act, 1947, increased this levy from ½d. to 1d. per ton. This rise was made necessary by the imminent exhaustion of the fund, and during 1948 it was also necessary for the State coal-mines to pay £1,000 in levies slightly in advance of the due date so that the current outgoings could be met. These contributions are paid to the Coal-miners' Relief Fund established under the Act, the fund being administered by the Public Trustee with the assistance of local committees.

Receipts for the year ended 31st March, 1950, were £10,882, and expenditure for the year was £7,146. Interest earned amounted to £176, and the balance standing to the credit of the fund on 31st March, 1950, was £8,123. For the year ended 31st March, 1949, the figures were: receipts, £11,373; expenditure, £7,763; interest, £56; balance as at 31st March, 1949, £4,221. The financial position of the fund continues to improve as a result of the increased levy.

Information concerning monetary benefits for miners incapacitated by miner's phthisis or any other occupational disease or heart disease contracted while working as a miner in New Zealand appears in Section 26 (Social Security, Pensions, Superannuation, &c.).

Chapter 22. SECTION 22—FACTORY PRODUCTION

Table of Contents

STATISTICS of factory production were collected in New Zealand from 1867 to 1916 in conjunction with the population census; but, commencing with the year 1918–19, the collection became an annual one. In regard to the production year 1948–49, the annual survey was carried out on a sample basis, only twenty major industries being covered. From the results of this collection, certain estimates for factory production as a whole have been made, and these have been incorporated in this section, together with the data for those industries covered. An analysis of the statistics for recent years, with a brief summary covering the period 1910–11 to 1948–49, is given in the following pages. More complete statistics will be found in the annual Statistical Report on Factory Production.

It should be noted that the production year does not coincide with the calendar year, the 31st March generally marking the end of the accounting period. In the important semi-primary industries, butter, cheese, and condensed milk manufacture and meat freezing and preserving, the financial years—and, incidentally, the periods covered by the returns from which the accompanying statistics are compiled—are in accordance with the production seasons ending respectively in the following June (or July) and September.

A review of the statistics of factory production for a number of years shows that, following the depression of the early nineteen-thirties, New Zealand industries had been making steady progress up to the outbreak of the Second World War; progress to which the establishment and growth of new industries had contributed considerably. This diversification and expansion, which received a further impetus as the result of the policy of import selection and control instituted by the Government towards the end of 1938, greatly increased the occupational range of factory employment, and local production of raw materials ceased to be the limiting factor in the growth of factory industries, local manufactures being able to meet the country's needs in many products which previously had been almost exclusively imported. This development stood New Zealand in good stead during the years of the Second World War when heavy calls were made on the industrial community to supply goods no longer obtainable from overseas for both the Armed Forces and civilian requirements. Not only were there large increases in the output of lines for which appropriate manufacturing facilities and skills were available, but new facilities were provided, locally and by importation, and now skills acquired for production in lines not previously attempted in this country. On the other hand, during the war and in the post-war period, labour shortages and difficulties experienced in obtaining overseas sources of supply of plant and raw materials have restricted the supply of certain commodities. Despite these obstacles, a continued expansion of New Zealand industries has been manifested in recent years.

The development of the country's hydro-electric power resources has been a potent factor in industrial growth. Until the outbreak of the Second World War curtailed deliveries of generating equipment and also led to heavier demands on available supplies owing to the expansion of industry, ample power was available in both Islands at rates comparing very favourably with those in other and more highly industrialized countries. The all-over price per unit retailed in 1949–59 was 0.84d., with much lower rates for industrial supply in the urban areas. Shortage of generating capacity has now necessitated continuous control on the growth of load, and restrictions on the use of current have been necessary at certain periods in recent years. The State Hydro-electric Department is now pressing forward extensive hydro-electric-development schemes in both the North and South Islands.

INDUSTRIES COVERED BY STATISTICS.—Under the regulations authorizing the collection of statistics of factory production a “factory” is defined as an establishment engaged in the manufacture, repair, or preparation of articles for wholesale or retail trade or for export, which employs at least two hands or uses motive power, with the exception of the following, which are expressly excluded: Bakeries, butcheries, laundries, smithies, waterworks, shops engaged in retail trade only, and farmers or others using motive power for their own individual and private use. The following are, however, required to furnish returns even though employing less than two hands and not using motive power: tanneries; bacon, butter, cheese, soap, and candle factories; brickyards; and lime-works.

Such industries as jewellery and watch repairing, boot and shoe repairing, and saddlery repairing, come within the meaning of the term “factory,” and figures relating to these industries were at one time included in the statistics. Since 1919, however, they have been excluded unless they are also engaged in actual manufacture and have at least two persons engaged, or use motive power. Other classes of establishments formerly covered by the statistics but excluded from 1921–22 onwards are those engaged in dressmaking and millinery (unless manufacturing wholesale for sale in retail shops), bespoke tailoring, and establishments engaged in tea blending and packing, liquor-bottling, stone quarrying and crushing, asphalting, and monumental masonry. The latter industries were excluded to bring the statistics into conformity with those of other Commonwealth countries. In addition, returns are not required from plumbers, from undertakers, or from builders who make joinery solely for their own building contracts.

It should be noted that factory-production statistics do not cover, and do not purport to cover, all establishments registered as factories in New Zealand. “One man” businesses are excluded with the exception of tanneries, bacon, butter, cheese, soap, or candle factories, brickyards, or lime-works; and some small repair-shops (as explained previously) are excluded even though they may employ two or more hands. The effect of these limitations in the scope of the statistical inquiry is seen from the fact that while for the year 1947–48, 19,102 factories, employing 162,802 hands, were registered under the Factories Act, only 7,966 factories (with 140,267 persons engaged) were covered by the statistics of factory production.

GENERAL SUMMARY.—The statistics in the table following illustrate the growth of New Zealand's factory production to its present standing.

Year.Number of Establishments.Persons engaged.Salaries and Wages paid.Cost of Materials.“Other Expenses” (i.e., Expenses of Operation other than Salaries and Wages and Cost of Materials).Value of Output.Added Value.

* Productive employees only.

† Not available.

‡ Estimates based on results of sample survey carried out during this year.

   £££££
1910–113,48345,924*4,786,698*18,782,92929,317,02310,534,094
1915–163,75548,744*5,791,704*30,197,78443,034,03312,836,249
1920–214,02269,68113,172,99652,933,49477,828,01324,894,519
1925–264,79478,70816,153,82251,668,1008,395,92182,358,85130,690,751
1929–305,16882,86116,846,28658,484,2459,954,86190,757,98132,273,736
1930–315,19477,91415,617,05248,458,3569,388,62677,745,24929,286,893
1931–324,96968,69712,642,93542,472,6008,263,06566,588,74424,116,144
1932–334,99368,92112,048,14842,726,0438,097,04266,109,45523,383,412
1933–345,02872,65112,106,50047,067,5648,108,89071,770,87224,703,308
1934–355,27079,35813,244,37352,277,2858,809,91279,324,47327,047,188
1935–365,53686,58814,844,36760,172,8489,374,36990,014,74829,841,900
1936–375,72896,40118,333,07770,938,16510,481,253105,941,72235,003,557
1937–385,924102,34420,981,58775,371,55810,540,208113,691,55638,319,998
1938–396,146102,53522,270,01075,634,90310,001,804114,447,42638,812,523
1939–406,342108,72224,460,54985,243,38311,043,557129,061,82643,818,443
1940–416,395113,99926,946,79998,547,80411,978,820147,153,55948,605,755
1941–426,367117,21429,504,299102,260,86012,812,901155,566,19553,305,335
1942–436,127114,59032,256,071107,447,79913,331,973165,936,28458,488,485
1943–446,202117,86434,433,075112,883,93214,516,235175,686,68962,802,757
1944–456,485122,41437,379,062122,695,10615,481,351189,800,76467,105,658
1945–466,991128,20841,499,113123,508,43816,278,562195,258,61471,750,176
1946–477,642134,43545,336,217138,533,72218,247,043218,106,18279,572,460
1947–487,966140,26752,132,689181,773,21821,240,976272,155,33390,382,115
1948–498,000142,50056,000,000203,000,00023,350,000301,000,00098,000,000

In the calculation of value of products, values at the factory are taken. Despite instructions to the contrary, however, it was found that some of the returns for 1937–38 and previous years contained an unknown amount of selling and distributing charges. As these charges have been excluded from the figures for 1938–39 and subsequent years, the value of output, added value, and other expenses of manufacture for these years are not strictly comparable with earlier years.

Factory production climbed fairly steadily from 1910–11 until a relatively high level was attained in 1929–30. During the depression of the early “thirties” there was a decided fall, but 1933–34 saw the commencement of a gradual recovery in industrial conditions. The pre-depression level was surpassed in 1936–37, and from then on each successive year has set new record high levels for factory production. During the Second World War there were temporary reductions in the numbers of establishments operating, and a fall in the number of persons engaged occurred in 1942–43 as a result of mobilization for home defence following the entry of Japan into the war. However, by 1944–45, recovery had more than made up for these reductions, and from that year New Zealand industries have maintained the rapid progress characteristic of the immediate pre-war years, despite difficulties in the form of labour shortages and of the supply of imported plant and materials.

In the 7,966 establishments recorded in 1947–48 the average number of persons engaged was higher by 5,832 or 4.3 per cent., than in the 7,642 establishments reported in 1946–47. The salaries and wages paid increased by £6,796,472, or by 15.0 per cent. The cost of materials used increased by £43,239,496, or 31.2 per cent., while the value of output rose by £54,049,151, or 24.8 per cent., resulting in the added value increasing by £10,809,655, or 13.6 per cent.

In making use of the following summary by provincial districts for the year 1947–48 it is necessary to keep in mind the differences in size and population of the respective provincial districts (refer to Section 3.—Population).

Provincial District.Number of Establishments.Persons engaged.Salaries and Wages paid.Cost of Materials.Other Expenses of Operation.Value of Output.Added Value.
   £££££
Auckland2,93253,54620,081,72676,414,7868,890,313111,597,41235,182,626
Hawke's Bay3534,9111,856,9508,134,925698,04411,414,2753,279,350
Taranaki3724,4221,791,08011,615,066833,59614,506,6822,891,616
Wellington1,72431,95312,027,72139,260,8204,606,99660,647,85121,387,031
Marlborough103785282,166957,609108,1321,373,245415,636
Nelson2512,423927,7402,241,397417,1873,831,8461,590,449
Westland1091,275528,280555,258181,4781,377,176821,918
Canterbury1,15823,5928,322,09023,479,2262,826,49637,391,69713,912,471
Otago—       
Otago62412,6824,443,24311,122,7181,852,28618,802,1717,679,453
Southland3404,6781,871,6937,991,413823,44811,212,9783,221,565
Totals7,966140,26752,132,689181,773,21821,240,976272,155,33390,382,115

ESTABLISHMENTS AND EMPLOYEES.—There was an increase of 324 in the number of establishments reporting in 1947–48, compared with increases of 651 in 1946–47, and 506 in 1945–46. The increases recorded in 1946–47 and 1945–46 are numerically the highest recorded and compare with the percentage increases recorded after the First World War. The same factors operated after both wars—viz., the re-establishment of businesses closed down during the war period and the opening of new businesses by returned servicemen. In addition, in recent years the shortage of labour in the principal centres has resulted in branch factories and workrooms being opened in secondary towns to tap the labour resources in those areas.

The industries recording the greatest increases in the numbers of establishments reporting operations in 1947–48 were: sawmilling, 107, coachbuilding, motor and cycle engineering, 45; textile and fur clothing, 39; furniture and house furnishings, 45.

The following table shows the average (monthly) numbers of wage-earners and of total persons engaged in each of the principal industries and all industries, and the number of establishments operating, during the year 1947–48.

Industry.Number of Establishments.Wage-earning Employees.Total Persons engaged.
M.F.M.F.
Meat freezing and preserving529,95343411.192629
Ham and bacon curing434912259769
Butter, cheese, condensed milk, &c.3852,8841033,691397
Grainmilling455452467861
Biscuits and confectionery731,1561.0551,3441,179
Jam-making, fruit and vegetable preserving29481358537379
Miscellaneous foods71490390610465
Brewing and malting471,338 1,53675
Aerated waters, cordials, and ice-cream15052293739172
Tobacco and cigarettes8312666372717
Soap and candle24332217437264
Boiling down, glue, and manures374263950154
Fellmongering and woolscouring28475 5268
Tanning20898197023
Sawmilling, sash and door making5947.478318,562130
Coopering and casemaking27320136111
Woodware and turnery2221,924442,291100
Furniture and house furnishings6624,1006624,906819
Paper bag and box making36515488617528
Gasworks441,28821,666112
Electric supply972,931373,910432
Printing, publishing, and bookbinding3584,8651,5606,0492,178
Lime crushing and burning and cement1001,171 1,36016
Brick, tile, and pottery581,2491791,383227
Pumice and concrete products152838 1,02926
Wallboard and building-sheet86750390515
Rubber goods and vulcanizing881,1021381,290207
Tinned plate and sheet metal1522,1633542,451450
General engineering, iron and brass founding4988,0022119,280553
Electrical and radio engineering1642,1344912,520651
Agricultural and dairying machinery811,14541,33371
Coachbuilding, motor and cycle engineering1,6069,8594012,188747
Saddlery, harness, and leather goods129511610680666
Ship and boat building38991 1,09623
Chemical fertilizers9954 1,07140
Paint and varnish253844148684
Polishes, matches, chemicals, &c.1708067551,132959
Footwear1132,7622,0113,1052,154
Woollen-mills201,4641,0611,5711,099
Hosiery and knitted goods606391,3307741,427
Textile and fur clothing6932,16413,1723,18913,937
All other industries6726,0961,5457,2711,907
    Totals7,96688,90828,163106,20634,061

The distribution of the sexes among the persons engaged shows a considerable preponderance of males. In the five years prior to the Second World War the proportion of female employees in factories was steady at 25 per cent. After rising rapidly to a peak of 31.5 per cent. in 1942–43 as a result of additional women being recruited for factory work and men being called for military service, the proportion then fell equally rapidly back to the pre-war figure.

In the smaller districts there are few industries employing female labour to any great extent; but the male preponderance is considerably smaller in the four main districts, where female labour is in greater demand. In Wellington and Otago the excess of males is less than in other districts, owing principally to the comparative importance of their clothing and textile industries. Women and girls are chiefly found in the following industries: textile and fur clothing, 13,937; printing, publishing, and bookbinding, 2,178; footwear-manufacturing, 2,154; hosiery and knitted goods, 1,427; woollen-mills, 1,099; and biscuits and confectionery, 1,179.

The following figures show that in 1947–48 for approximately ten wage-earners there was one proprietor (actively engaged), manager, or overseer.

 1946–47.1947–48.  
Group.Number of Persons.Per Cent. of Total.Number of Persons.Per Cent. of Total.
Proprietors actively engaged3,2072.43,3002.3
Managers, overseers, &c.8,2046.18,4656.0
Accountants, clerks, &c.11,2608.411,4318.2
Wage-earning employees111,76483.1117,07183.5
    Totals134,435100.0140,267100.0

A classification of the establishments, according to the number of persons engaged, is given for the years 1924–25, 1929–30, 1934–35, 1939–40, and 1941–42 to 1947–48.

Year.10 or under.11–20.21–50.51–100.Over 100.Totals.
Number of Factories
1924–252,9727205701551214,538
1929–303,4768005911641375,168
1934–353,7257644961431425,270
1939–404,2189577722121836,342
1941–424,1659677792462106,367
1942–434,0388877572442016,127
1943–444,0658977912482016,202
1944–454,1391,0468332701976,485
1945–464,4061,1899212662096,991
1946–474,8891,2481,0092882087,642
1947–485,0241,3961,0442932097,966
Number of Persons engaged
1924–2512,65810,69018,06711,09424,67477,183
1929–3015,47411,78517,97711,65825,96782,861
1934–3514,90111,32115,3099,71628,11179,358
1939–4017,21214,04823,31614,73739,409108,722
1941–4217,23814,35923,56516,46345,589117,214
1942–4316,88113,08723,12316,80044,699114,590
1943–4417,60613,38424,54717,34744,980117,864
1944–4518,38215,54725,78718,80943,889122,414
1945–4619,81317,51928,34317,88644,647128,208
1946–4721,97418,29731,51619,99242,656134,435
1947–4823,24420,87732,18919,93444,023140,267

The classification according to the number of persons engaged shows clearly that, judged according to the standards of highly industrialized communities, the average size of the industrial unit in New Zealand is small. Factories employing ten persons or under accounted for 63 per cent. of the total number of factories in 1947–48.

The changes brought about by a war economy had their greatest effect on the smaller establishments, the number employing ten persons or fewer having fallen by 215 between 1940–41 and 1942–13, while those employing from 11 to 20 hands fell by 80 in 1942–43. All groups, but particularly the smaller-sized establishments, have shown recoveries in the post-war period.

The two tables which follow give the numbers of male and female wage-earners employed in factories on the fifteenth or nearest representative day of each month of the years 1940 to 1947 and of the first three months of 1948. In addition to the steady increases up to 1941, there are considerable and uniform seasonal movements apparent in the figures for male wage-earners, due almost entirely to the influence on the totals of the figures for the important and highly seasonal industries such as meat freezing and preserving, and butter, cheese, condensed milk, &c., making. Also apparent is the reduction in the male labour force in the earlier months of 1942 as a result of the mobilization of the home-defence Forces following Japan's entry into the war, but by mid-year 1943, male employment in factories was again back to the 1941 level. Accretions to the labour force became apparent in 1944, and accelerated to an annual gain of approximately 8,000 in 1946. This figure was not held in 1947, the annual gain dropping to approximately 5,000. The last quarter of 1947 and the first quarter of 1948 recorded a further falling tendency.

MALE WAGE-EARNERS EMPLOYED IN FACTORIES, BY MONTHS

1940.1941.1942.1943.1944.1945.1946.1947.1948.
January70,61472,80571,38970,52773,23777,40583,86389,91694,485
February71,49473,49570,73970,77374,19077,82185,17390,18594,588
March71,12173,34770,29170,47773,06476,62485,22589,72593,533
April71,79371,95268,73371,02273,78077,82484,59189,838 
May70,37271,15466,88170,80773,35277,72184,55189,675 
June67,60969,71065,00269,16172,16475,91082,80188,186 
July63,97366,87762,77466,64569,83872,69680,67586,070 
August64,51566,11362,60766,80070,01973,02181,14886,029 
September65,36366,93163,40166,93170,89473,82482,09186,714 
October65,60566,46163,53367,01370,80374,98582,42387,284 
November66,27968,09864,21567,46471,59676,43684,09288,001 
December70,61971,63268,22270,77575,53081,52687,93292,643 

In the case of female employment there are no marked seasonal or other cyclical movements to disguise the steady increases which were recorded from 1938 up to April, 1945, but it may be noted that January is generally the month of lowest employment, additions to the staff by mid-January being fewer than the losses sustained at the end of the previous year. The increases referred to reached their highest rate in the second quarter of 1940, and thereafter the rate of accretion fell. In the first quarter of 1946 the losses of female staff were running at a very high rate, consequent on the lifting of the man-power direction regulations. This rate of depletion fell rapidly, however, and a stable level of employment was reached later in the year. The year 1947–48 was notable for the increase recorded in monthly totals for female factory workers.

FEMALE WAGE-EARNERS EMPLOYED IN FACTORIES, BY MONTHS

1940.1941.1942.1943.1944.1945.1946.1947.1948.
January24,02026,88529,06029,81229,24029,44026,68326,03026,619
February25,26228,39429,94030,53830,45030,69427,49927,21627,804
March25,46928,76130,51130,79730,74630,86627,54827,43227,904
April26,42228,96730,75030,84530,97931,01627,46727,710 
May26,64429,29430,57730,72130,97730,83827,39028,008 
June27,14629,31730,50230,62430,94930,49727,34728,001 
July27,54829,60730,03830,48530,92530,39327,41428,111 
August27,55429,64930,09030,41030,90129,99727,33528,268 
September27,86829,65330,16830,36930,94229,87827,60228,372 
October28,14230,09430,22630,28430,88729,54527,68428,394 
November28,18130,18830,36730,35130,85529,38627,91928,670 
December28,05730,13330,57630,28730,92229,08227,78728,505 

SALARIES AND WAGES.—The figures relating to the amounts paid as salaries and wages include amounts paid as bonuses and for overtime. Figures illustrative of the rise in the aggregate amount paid in salaries and wages will be found in the first table of this section.

The amounts received by male and female employees (inclusive of all groups—executive, clerical, and wage-earning) and the average amount received per employee of each sex, as recorded in the last five collections, are set out below.

Year.Males.Females.Both Sexes.
Total.Average.Total.Average.Total.Average.
 ££££££
1943–4428,585,2493505,847,82616234,433,075292
1944–4531,097,6443626,281,41817237,379,062305
1945–4634,964,7173776,534,39618441,499,113324
1946–4738,839,6453856,496,57219445,336,217337
1947–4844,760,9574217,371,73221652,132,689372

The averages shown relate to all persons engaged, irrespective of age, industry, status, and personal occupation, and year-to-year comparisons may be affected by changes in any of these factors. The figures do, however, give an indication of the increased earnings of factory workers in recent years, the average for males having risen by 66 per cent. and for females by 100 per cent. since 1938–39. Of interest also is the relative improvement in the earnings of female wage-earners over the same period; whereas in 1938–39 the figure for average earnings of females was 42.5 per cent. of the corresponding figure for males, in 1947–48 the ratio had increased to 51.3 per cent.

The table following shows the amount of salaries and wages paid in each of the principal industries and the total for all industries during the years 1946–47 and 1947–48.

Industry.1946–47.1947–48.
Males.Females.Males.Females.
 ££££
Meat freezing and preserving4,910,830122,5465,462,866142,427
Ham and bacon curing252,16016,075263,57616,271
Butter, cheese, condensed milk, &c.1,541,88478,4531,623,23880,219
Grainmilling259,37711,759297,68813,018
Biscuits and confectionery522,655219,321566,651262,370
Jam-making, fruit and vegetable preserving200,67272,192214,67776,926
Miscellaneous foods239,31192,815249,36095,064
Brewing and malting693,87416,453719,63217,370
Aerated waters, cordials, and ice-cream264,30532,624298,00037,136
Tobacco and cigarettes149,024162,471163,879176,056
Soap and candle168,71851,609178,36854,275
Boiling down, glue, and manures200,5547,492226,70912,297
Fellmongering and woolscouring210,5101,778248,8881,943
Tanning372,3364,288424,9514,994
Sawmilling, sash and door making3,093,09627,8953,830,83933,482
Coopering and casemaking135,6342,890147,9802,574
Woodware and turnery744,20327,035924,20523,279
Furniture and house furnishings1,482,498130,4861,756,549165,328
Paper bag and box making215,39093,532265,374110,256
Gasworks679,33621,262725,81323,125
Electric supply1,682,35786,7551,707,74591,129
Printing, publishing, and bookbinding2,246,905400,0822,596,121464,840
Lime crushing and burning and cement525,4803,438563,2103,362
Brick, tile, and pottery460,12735,696575,36051,670
Pumice and concrete products324,9905,066412,0255,140
Wallboard and building-sheet313,2222,557373,0232,731
Rubber goods and vulcanizing457,45135,214541,92249,363
Tinned plate and sheet metal836,582103,5851,011,686108,706
General engineering, iron and brass founding3,320,708122,6223,730,694125,889
Electrical and radio engineering825,234127,796975,899146,070
Agricultural and dairying machinery482,03912,877512,44215,073
Coachbuilding, motor and cycle engineering3,560,005122,1014,549,357152,165
Saddlery, harness, and leather goods249,397172,454266,046142,804
Ship and boat building425,7795,088512,6465,543
Chemical fertilizers456,4458,253503,0199,425
Paint and varnish165,54023,105215,98619,776
Polishes, matches, chemicals, &c.430,996191,965478,176196,037
Footwear1,072,727405,3371,227,070466,374
Woollen-mills629,518261,367635,241245,095
Hosiery and knitted goods307,568291,756354,784331,452
Textile and fur clothing1,197,3052,476,9111,433,9552,974,361
All other Industries2,532,963409,5712,995,307416,317
    Totals38,839,6456,496,57244,760,9577,371,732

Special returns as to employees and wages in a selected week are collected each year. The period covered is the nearest normal week to 31st March, and the data collected include the number of employees engaged at each wage-rate, as well as the total employees and the total earnings during the specified week. Working proprietors, managers, overseers, accountants, and clerks do not come within the scope of this inquiry, which covers wage-earning employees only, and out-workers, if any. All productive employees are covered, irrespective of age or sex, and the figures are therefore inclusive of many juvenile workers receiving comparatively low wages. The following summary table shows totals and averages for all factory industries for each of the last five years.

Year.Total Wage-earning Employees.Earnings during Specified Week.
Total.Average.
Males.Females.Males.Females.Males.Females.
   £££s.d.£s.d.
194471,96030,506468,55694,5206103320
194576,24930,710513,95697,92261410339
194685,04027,522611,00294,991738390
194789,13627,293665,908101,0057953140
194893,56427,959772,812116,734852436

Certain reservations must be made in drawing any conclusions from the foregoing table. Since the figures relate to a single week, an unduly late or early season, abnormally wet weather, &c., would affect the usefulness of the data concerning either the number of workers or their earnings as indices of the volume of employment. Further, the figures given are for actual earnings during the week in question and not for nominal wage-rates. Variations in the amount of overtime or short-time would cause appreciable changes in average earnings even though wage-rates remained unchanged.

The following table shows the distribution of employees within the various wage-groups for the specified weeks covered by the returns for 1939 and 1948. The wage-categories shown refer in this instance to wage-rates and not to actual earnings.

Weekly Rate of Wages.Males.Females.
1939.1948.1939.1948.
Under 20s.1,455151,8216
20s. and under 30s.3,2151103,079340
30s. and under 40s.3,6771,1163,7831,029
40s. and under 50s.3,3001,3104,8161,030
50s. and under 60s.1,8511,5967,4581,371
60s. and under 70s.1,4041,3821,1801,412
70s. and under 80s.9661,2572993,628
80s. and under 90s.2,0131,341959,963
90s. and under 100s.11,6481,078414,097
100s. and under 110s.12,6101,175342,374
110s. and under 120s.14,855974101,138
120s. and under 130s.5,6755,2259681
130s. and under 140s.1,88913,3472365
140s. and under 150s.2,30524,9879242
150s. and under 160s.16,157115
160s. and under 170s.9,07076
170s. and under 180s.4,30632
180s. and under 190s.2,96814
190s. and under 200s.1,20511
200s. and under 220s.2,0051,953428
220s. and under 240s.9952
240s. and under 260s.6314
260s. and under 280s.327 
280s. and under 300s.329 
300s. and over7101
    Totals68,86893,56422,64027,959

These statistics of distribution of wage-rates show that marked changes have occurred in wage distribution, a fact which materially affects the significance of statistics of average earnings. Obviously, if a greater proportion of juvenile workers at starting rates of pay is employed in any particular year, this will tend to bring down the general average rate of earnings—despite the fact that rates of wages for individual classes of factory work actually may have been raised. On the other hand a slackening in juvenile employment would, other things being equal, raise the average earnings. The table of distribution of wage-rates is thus more informative as an indication of wage-changes than are figures of average earnings, since, if desired, the lower wage-groups comprising mostly juveniles can be excluded from consideration.

MOTIVE POWER.—A supply of cheap motive power is essential for industrial development. New Zealand industries were formerly somewhat handicapped in this respect, long railway hauls and, in some instances, sea-carriage being involved in the transport of coal from the mines to the factories. The difficulties in the way of obtaining a plentiful supply of cheap motive power have been met by the development by the State of hydro-electric schemes, for which New Zealand is topographically well suited. As mentioned earlier in these notes, restrictions in the supply have been necessary during recent years.

The following table shows the numbers and aggregate horse-power of each class of engine used in factories for 1926–27, 1936–37, and the last three years.

Class of Engine.1926–27.1936–37.1945–46.1946–47.1947–48.
Steam No.2,0241,5611,2051,1841,128
H.P.134,285141,001132,979133,168130,717
Gas No.456145948484
H.P.16,3137,5624,8004,4183,962
Oil No.3215501,1521,2361,483
H.P.9,89438,33660,62963,69172,576
Electric No.11,32423,15155,87062,83670,534
H.P.102,816170,263307,617324,240344,423
Water No.269218189183168
H.P.145,431387,387660,897689,208768,261
    Totals No.14,39425,62558,51065,52373,397
H.P.408,739744,5491,166,9221,214,7251,319,939

The figures relating to horse-power represent the indicated horse-power of the engines installed and not the horse-power actually used. The statistics include the horse-power of turbines, pelton wheels, and other engines used in the generation of electric current.

The following table shows the total number of engines and horse-power in use in the principal industries and the totals for all industries for the years 1937–38 and 1947–48.

Industry.1937–38.1947–48.
Number of Engines.Horsepower.Number of Engines.Horsepower.

* Not available.

Meat freezing and preserving2,37043,0854,28456,498
Ham and bacon curing1531,4842771,880
Butter, cheese, condensed milk, &c.2,54125,5654,14533,201
Grainmilling2585,6093956,239
Biscuits and confectionery6205,3791,2726,934
Jam-making, fruit and vegetable preserving663696881,771
Miscellaneous foods3491,6587662,688
Brewing and malting4923,7019095,447
Aerated waters, cordials, and ice-cream5392,8541,1634,075
Tobacco and cigarettes102394297700
Soap and candle1611,0203591,695
Boiling down, glue, and manures1672,0313893,008
Fellmongering and woolscouring141,4912551,987
Tanning142,2927354,016
Sawmilling, sash and door making2,18039,6274,12084,278
Coopering and casemaking2242,4113043,034
Woodware and turnery8764,7502,43411,872
Furniture and house furnishings1,5365,6744,64211,931
Paper bag and box making1465897451,831
Gasworks**4265,336
Electric supply212581,865183888,954
Printing, publishing and bookbinding2,72010,3453,98813,518
Lime crushing and burning and cement63323,1681,04725,585
Brick, tile, and pottery2946,3265567,357
Pumice and concrete products1791,2476742,312
Wallboard and building-sheet**4074,425
Rubber goods and vulcanizing**8416,047
Tinned plate and sheet metal3371,8991,7074,875
General engineering, iron and brass founding1,72211,6117,21127,017
Electrical and radio engineering3715881,9643,459
Agricultural and dairying machinery2571,6946512,701
Coachbuilding, motor and cycle engineering2,9026,4726,48012,666
Saddlery, harness, and leather goods104242593446
Ship and boat building849433111,974
Chemical fertilizers4706,31689510,948
Paint and varnish905844052,258
Polishes, matches, chemicals, &c.3702,1571,4414,969
Footwear3751,4081,9713,714
Woollen-mills3425,9349487,776
Hosiery and knitted goods2274991,0361,562
Textile and fur clothing1,3522,6545,4085,181
All other industries1,79516,8116,07533,774
    Totals28,074832,75073,3971,319,939

A deficiency in the statistics arises from the lack of information relating to the actual or estimated period during which the engines or motors were in use. This is an important aspect of considerations affecting the quantitative measurement of the motive power employed.

CONSUMPTION OF COAL.—During the year 1947–48, 1,159,648 tons of New Zealand coal were used in industries covered by the statistics of factory production, an increase of 49,036 tons over the 1,110,612 tons recorded in the previous year. No imported coal was used in either year.

The gas-making industry accounted for 323,428 tons, or 28 per cent., of the total amount of coal used in industries covered by the factory production statistics. A further 42 per cent. was used by four industries—namely, butter, cheese, and condensed-milk making, 176,614 tons; meat freezing and preserving, 146,841 tons; lime-crushing and cement-making, 103,465 tons; and electric-supply, 61,346 tons.

MATERIALS.—The value of materials used or operated upon does not afford a very satisfactory basis of comparison as between one industry and another, for the reason that the changes wrought during the process of manufacture vary considerably in degree. As an instance, the factory constituent in the products of the four food-processing industries heading the tables shown in this section is comparatively small, whereas the aggregate cost of finished woollen fabrics is far in excess of the value of untreated wool.

The cost of materials used in the principal industries and in all industries during the last four years is given in the table hereunder.

Industry.1944–45.1945–46.1946–47.1947–48.
 ££££
Meat freezing and preserving26,123,92828,745,48531,952,83636,351,872
Ham and bacon curing2,483,4362,405,5562,202,6632,486,556
Butter, cheese, condensed milk, &c.29,318,83824,745,84727,602,25542,732,029
Grainmilling2,283,9082,275,2672,155,9572,309,992
Biscuits and confectionery1,824,7871,624,9171,820,7032,330,915
Jam-making, fruit and vegetable preserving1,260,8031,077,064990,7401,275,759
Miscellaneous foods1,404,3771,501,0091,295,7401,600,391
Brewing and malting1,636,0701,883,3112,156,8422,286,573
Aerated waters, cordials, and ice-cream434,403492,231573,198702,898
Tobacco and cigarettes1,705,6081,877,8201,880,2192,219,986
Soap and candle585,066649,898734,891855,196
Boiling down, glue, and manures527,193538,759607,797944,271
Fellmongering and woolscouring2,998,0112,925,6823,514,7394,281,835
Tanning985,827982,6741,090,3501,232,919
Sawmilling, sash and door making2,772,7163,087,8433,543,5354,314,182
Coopering and casemaking556,232411,217385,960365,494
Woodware and turnery922,0251,105,7471,299,8351,735,437
Furniture and house furnishings1,546,2461,815,1232,412,5173,243,374
Paper bag and box making783,082865,5201,048,1141,415,614
Gasworks709,362746,670768,305833,277
Electric supply7,191,2287,539,3098,360,2898,464,965
Printing, publishing, and bookbinding2,095,3342,372,1632,764,5173,511,281
Lime crushing and burning and cement351,552366,532350,173426,412
Brick, tile, and pottery79,78474,94082,091129,542
Pumice and concrete products285,544355,364380,144483,726
Wallboard and building-sheet476,780555,102540,615683,253
Rubber goods and vulcanizing540,707688,988964,760963,908
Tinned plate and sheet metal1,686,9711,746,1391,933,5052,624,184
General engineering, iron and brass founding3,586,3233,576,8123,594,0584,519,626
Electrical and radio engineering1,162,4271,571,5891,965,6492,751,379
Agricultural and dairying machinery1,133,4581,331,8311,051,4911,320,776
Coachbuilding, motor and cycle engineering2,470,5303,203,1046,274,26711,381,668
Saddlery, harness, and leather goods534,054559,980741,751748,445
Ship and boat building232,560234,424228,121263,142
Chemical fertilizers1,107,6551,196,7551,470,8143,127,163
Paint and varnish1,044,3301,210,9011,459,8622,253,878
Polishes, matches, chemicals, &c.1,629,9261,763,9121,939,8622,230,842
Footwear2,009,6611,859,5492,000,7752,582,664
Woollen-mills1,076,100941,007828,590884,928
Hosiery and knitted goods1,178,6521,259,8041,143,0261,555,572
Textile and fur clothing4,425,1494,829,9645,565,8228,102,151
All other Industries7,534,4636,512,6296,856,3449,245,143
    Totals122,695,106123,508,438138,533,722181,773,218

In considering the cost of materials used it should be remembered that the semi-primary industries (e.g., meat freezing and preserving, and butter, cheese, condensed milk, &c.), account for a very large proportion of the total. In 1947–48, for example, the two industries mentioned accounted for £79,083,901 out of a total of £181,773,218 for cost of materials used. Constituting as they normally do close on one-half of the total cost of materials used in all industries, the figures for the semi-primary industries influence the total figures for any year. Indeed, a study of the total cost of materials over a number of years shows that frequent and wide oscillations in primary-produce prices are clearly reflected therein. In this connection, too, it should be mentioned that considerable increases in primary producers' costs over recent years have been met by direct and indirect subsidies rather than by higher prices. To some extent, then, the costs of materials of these two semi-primary industries are understated, with a consequent effect on the total cost of materials for all factory industries. Also, difficulty has been experienced in determining what actually constitutes materials in the electric-supply industry. For the purpose of factory-production statistics the figure for materials in respect of this industry is deemed to be the total expenditure for the year, less salaries and wages met out of revenue from the sale of energy.

The total cost of materials used during 1947–48, £181,773,218, was £43,239,496 or 31.2 per cent. above the 1946–47 record figure of £138,533,722. Higher prices as distinct from increased quantities of materials would account for an appreciable proportion of tin's increase, but abnormal factors operating during 1947–48, particularly as regards the treatment of subsidies in the dairy industry, tend to make this huge increase in the cost of materials a fictitious one, by the extent of these subsidies. Previously, in the case of the dairy industry, all increases in farm-costs over the 1942–43 level were met by direct payments to dairy-farmers, which were not shown in the accounts of the dairy factories. In the latest year, however, these subsidies were paid to dairy factories, and their consequent incorporation in the statistics for 1947–48 has accounted for much of the increase in the value of materials and products for this industry. The large increase in the output of the motor-assembly industry during 1947–48 accounted for the marked increase recorded in cost of materials for the coachbuilding, motor and cycle engineering group. The withdrawal of subsidies to certain industries, notably chemical fertilizers, is also reflected in increased costs of materials and product values.

PRODUCTS.—The value of products is based upon the valuation of goods at the factory-door.

In making use of the gross value of products it must be borne in mind that the figures include the value of raw materials operated upon, which value normally constitutes approximately two-thirds of the value of products. Where the products of one industry—for example, sawmilling—are treated again in other industries, such as furniture-making, joinery, &c., part of the value of the timber shown as products of the former industry appears again as the materials of the latter industry and enters into the value of furniture and joinery made. Duplication of this kind is found in many industries.

The following table shows the gross value of products for the principal industries and for all industries as recorded in each of the last four collections.

Industry.1944–45.1945–46.1946–47.1947–48.
 ££££
Meat freezing and preserving33,741,36036,576,47440,482,86545,013,053
Ham and bacon curing2,997,8642,954,7812,715,5222,988,405
Butter, cheese, condensed milk, &c.32,451,57827,883,59731,504,08246,921,901
Grainmilling2,869,3182,888,3892,804,6443,032,971
Biscuits and confectionery3,364,4223,101,0093,390,3484,031,196
Jam-making, fruit and vegetable preserving1,877,8321,712,9301,520,4391,860,044
Miscellaneous foods2,073,5822,204,6332,019,5272,406,892
Brewing and malting3,135,7753,573,8293,948,4264,011,631
Aerated waters, cordials, and ice-cream1,073,2891,241,8461,359,2411,574,310
Tobacco and cigarettes2,779,8932,853,7442,964,7233,697,042
Soap and candle1,081,9351,157,9831,322,9601,375,716
Boiling down, glue, and manures965,1531,036,1411,104,8481,568,644
Fellmongering and woolscouring3,337,7803,279,8043,931,9174,804,508
Tanning1,529,6301,575,4951,722,1431,907,533
Sawmilling, sash and door making6,99.947,861,7168,815,84011,023,967
Coopering and casemaking866,174639,482587,579582,694
Woodware and turnery1,877,1872,189,1862,509,7533,207,357
Furniture and house furnishings2,997,8703,675,6534,743,4156,038,211
Paper bag and box making1,295,8291,420,9641,701,8022,220,783
Gasworks1,959,7762,020,2632,053,6072,140,621
Electric supply9,255,2059,696,41810,403,07710,627,106
Printing, publishing, and bookbinding6,024,4216,857,0677,723,1589,003,338
Lime crushing and burning and cement1,542,6701,592,1961,606,7341,825,298
Brick, tile, and pottery746,807869,141997,6861,234,362
Pumice and concrete products645,906799,897890,1721,151,045
Wallboard and building-sheet958,1821,160,2071,172,7201,501,337
Rubber goods and vulcanizing1,149,5561,399,5931,852,6481,960,903
Tinned plate and sheet metal2,935,7002,986,1473,414,1294,491,499
General engineering, iron and brass founding8,801,5918,657,5659,011,63710,651,237
Electrical and radio engineering2,427,4763,122,9203,564,7874,688,730
Agricultural and dairying machinery2,030,1762,176,3022,049,8962,437,153
Coachbuilding, motor and cycle engineering5,774,0557,506,45311,946,33019,016,444
Saddlery, harness, and leather goods1,031,6491,114,0931,386,8511,329,207
Ship and boat building1,282,5601,041,263784,2521,027,972
Chemical fertilizers1,890,6832,126,8242,582,5094,336,692
Paint and varnish1,429,3701,655,5821,966,9422,897,476
Polishes, matches, chemicals, &c.2,872,6953,078,7943,449,7303,623,862
Footwear3,657,3743,562,3094,018,4714,920,569
Woollen-mills2,835,6282,579,1712,389,2092,369,705
Hosiery and knitted goods2,075,3342,223,9072,276,2732,785,162
Textile and fur clothing8,674,6109,557,26510,894,03114,372,383
All other Industries12,489,37511,647,58112,521,25915,496,374
    Totals189,800,764195,258,614218,106,182272,155,333

The substantial increase in the value of products in 1947–48, like that recorded for materials, is not solely due to increased production. Higher price-levels and increased production would undoubtedly share much of this increase, but other factors, mentioned in the last paragraph under the heading of “Materials,” also contributed largely to this increase.

ADDED VALUE.—As indicated under the heading of “Products,” the value of products is not always a satisfactory measure of either the absolute or the relative importance of a given industry, for the reason that only part of this value is actually created by the manufacturing processes carried on in the industry itself. In many cases by far the larger portion of the value of products represents the value of the materials used. From a manufacturing standpoint, the best measure of the importance of an industry is the value created by the manufacturing operations carried on within the industry. This value is obtained in New Zealand by deducting the cost of materials used from the gross value of the products, and is referred to as the “added value.”

The table given hereunder shows the added value for the principal industries and the totals for all industries for each of the last four years.

Industry.1944–45.1945–46.1946–47.1947–48.
 ££££
Meat freezing and preserving7,617,4327,830,9898,530,0298,661,181
Ham and bacon curing514,428549,225512,859501,849
Butter, cheese, condensed milk, &c.3,132,7403,137,7503,901,8274,189,872
Grainmilling585,410613,122648,687722,979
Biscuits and confectionery1,539,6351,476,0921,569,6451,700,281
Jam-making, fruit and vegetable preserving617,029635,866529,699584,285
Miscellaneous foods669,205703,624723,787806,501
Brewing and malting1,499,7051,690,5181,791,5841,725,058
Aerated waters, cordials, and ice-cream638,886749,615786,043871,412
Tobacco and cigarettes1,074,285975,9241,084,5041,477,056
Soap and candle496,869508,085588,069520,520
Boiling down, glue, and manures437,960497,382497,051624,373
Fellmongering and woolscouring339,769354,122417,178522,673
Tanning543,803592,821631,793674,614
Sawmilling, sash and door making4,220,7784,773,8735,272,3056,709,785
Coopering and casemaking309,942228,265201,619217,200
Woodware and turnery955,1621,083,4391,209,9181,471,920
Furniture and house furnishings1,451,6241,860,5302,330,8982,794,837
Paper bag and box making512,747555,444653,688805,169
Gasworks1,250,4141,273,5931,285,3021,307,344
Electric supply2,063,9772,157,1092,042,7882,162,141
Printing, publishing, and bookbinding3,929,0874,484,9044,958,6415,492,057
Lime crushing and burning and cement1,191,1181,225,6641,256,5611,398,886
Brick, tile, and pottery667,023794,201915,5951,104,820
Pumice and concrete products360,362444,533510,028667,319
Wallboard and building-sheet481,402605,105632,105818,084
Rubber goods and vulcanizing608,849710,605887,888996,995
Tinned plate and sheet metal1,248,7291,240,0081,480,6241,867,315
General engineering, iron and brass founding5,215,2685,080,7535,417,5796,131,611
Electrical and radio engineering1,265,0491,551,3311,599,1381,937,351
Agricultural and dairying machinery896,718844,471998,4051,116,377
Coachbuilding, motor and cycle engineering3,303,5254,303,3495,672,0637,634,776
Saddlery, harness, and leather goods497,595554,113645,100580,762
Ship and boat building1,050,000806,839556,131764,830
Chemical fertilizers783,028930,0691,111,6951,209,529
Paint and varnish385,040444,681507,080643,598
Polishes, matches, chemicals, &c.1,242,7691,314,8821,509,8681,393,020
Footwear1,647,7131,702,7602,017,6962,337,905
Woollen-mills1,759,5281,638,1641,560,6191,484,777
Hosiery and knitted goods896,682964,1031,133,2471,229,590
Textile and fur clothing4,249,4614,727,3015,328,2096,270,232
All other industries4,954,9125,134,9525,664,9156,251,231
    Totals67,105,65871,750,17679,572,46090,382,115

The development of factory production in New Zealand from 1918–19 onward is clearly portrayed in the following diagram, which also shows the relationship between cost of materials, added value, and value of output.

EXPENSES OF OPERATION.—Total operating costs of factory production for the year 1947–48 amounted to £255,146,883, of which salaries and wages accounted for £52,132,689, cost of materials for £181,773,218, and other expenses for £21,240,976, while value of output totalled £272,155,333.

The table below shows the principal items comprised in the figure for expenses of operation, other than salaries and wages and cost of materials, for the last four years.

Item.1944–45.1945–46.1946–47.1947–48.
 ££££
Cost of coal1,150,8881,169,2131,189,6691,390,201
Cost of other fuel and power1,503,9651,526,2191,592,1191,816,053
Insurance1,044,4161,095,2031,196,1741,446,731
Depreciation2,669,0672,835,4673,531,3844,252,604
All other expenses9,113,0159,652,46010,737,69712,335,387
    Totals15,481,35116,278,56218,247,04321,240,976

The amount paid in insurance premiums by factory industries has doubled since 1938–39. This is mainly attributable to the increase in the amount of wages paid, employers' liability premiums being based on this factor, while the War Damage Act, 1941 (replaced by the Earthquake and War Damage Act, 1944), provided for compulsory insurance against earthquake and war damage (see Section 30D).

The Land and Income Tax Amendment Act, 1945, provided for additional special rates of depreciation on premises and plant acquired, erected, or installed after 1st April, 1945. The effect of this provision and of the higher post-war price level for capital equipment is reflected in the greatly increased figure for depreciation recorded in the last two years shown.

CAPITAL INVESTED AND ASSETS.—Information as to the amount of capital invested in manufacturing industries was collected for some years, but the figures obtained were found to be unsatisfactory. The chief factors militating against the collection of reliable information have been the methods of accounting in use in many of the smaller establishments, and the difficulty of apportioning capital where an establishment is only partly manufacturing.

A more satisfactory indication of the capital investment in the manufacturing industry is obtained from figures of manufacturers' fixed and floating assets. Not only are the figures more reliable than those for capital invested, but they do not Buffer from the understatement of capital (from the economic viewpoint) which occurs in those cases where the factory premises, or, in some few cases, even the plant, is not owned by the manufacturer, but is rented. In these cases an estimate of the value of the rented asset has been obtained by capitalizing the annual rental shown. Approximations in the figures for fixed assets are also made where one building houses two or more factories carrying on different industries, necessitating an apportionment as between the industries. In most instances, too, fixed assets are stated at their book value, and this may be an overstatement due to insufficient allowance having been made for depreciation, obsolescence, &c., or an understatement owing to appreciated site-value, excessive allowance for depreciation, or currency depreciation resulting in the assets being understated in terms of their present earning-capacity or replacement cost. It is necessary to bear in mind those limitations to the accuracy of the figures of fixed assets appearing in the following table, which shows the values of the different classes of assets for each of the last eleven years together with an analysis by principal industries for 1947–48.

Industry.Fixed Assets.Floating Assets.Totals.
Land and Buildings.Plant, Machinery, and Tools.Materials, Stocks In Process, Fuel, and Supplies.Cash, Bills and Accounts receivable, Accounts prepaid, &c.
Totals—£££££
  1937–3825,573,74147,164,98115,214,11514,517,360102,470,197
  1938–3927,201,64249,296,16015,220,56415,180,004106,898,370
  1939–4028,544,17752,029,29817,615,55417,194,699115,383,728
  1940–4129,229,71954,525,41822,360,74018,013,764124,129,641
  1941–4230,199,29856,928,63424,598,90420,719,840132,446,676
  1942–4330,892,66857,361,10426,041,03624,152,243138,447,051
  1943–4431,733,70459,006,65329,543,24427,952,448148,236,049
  1944–4533,932,72763,058,55230,805,77529,461,541157,258,595
  1945–4635,921,26067,969,25832,557,08731,587,448168,035,053
  1946–4738,060,76475,459,26138,086,50135,052,809186,659,335
1947–48—     
  Meat freezing and preserving4,478,6422,066,3183,162,5894,008,35513,715,904
  Ham and bacon curing341,480138,682435,171168,7711,084,104
  Butter, cheese, condensed milk, &c.2,267,8142,396,8741,366,7623,811,0069,842,456
  Grainmilling506,727256,540548,179587,6101,899,056
  Biscuits and confectionery689,365455,7981,442,875521,2363,109,274
  Jam-making, fruit and vegetable preserving468,343247,725482,286177,4021,375,756
  Miscellaneous foods391,280265,053778,813391,3181,826,464
  Brewing and malting804,591776,481846,0701,217,2903,644,432
  Aerated waters, cordials, and ice-cream526,546510,066306,649434,8791,778,140
  Tobacco and cigarettes268,309213,2392,868,298180,1913,530,037
  Soap and candle218,613147,006631,193348,2711,345,083
  Boiling down, glue, and manures238,969231,130326,476272,5601,069,135
  Fellmongering and woolscouring112,38470,973200,076257,509640,942
  Tanning235,669164,350614,340190,4341,204,793
  Sawmilling, sash and doormaking1,141,5882,431,2791,047,7171,884,8076,505,391
  Coopering and casemaking129,57095,601146,450130,817502,438
  Woodware and turnery622,782433,088524,115487,8012,067,786
  Furniture and house furnishings1,451,277675,2311,693,454773,4764,593,438
  Paper bag and box making308,827267,477548,929198,2801,323,513
  Gasworks508,0723,758,410207,359498,6744,972,515
  Electric supply3,744,40360,506,8042,690,8633,269,66470,211,734
  Printing, publishing, and bookbinding2,323,4851,688,0852,574,0331,642,1558,227,758
  Lime crushing and burning and cement463,376653,113540,750473,4312,130,670
  Brick, tile, and pottery536,518335,415195,526290,7471,358,206
  Pumice and concrete products233,581216,894181,523239,609871,607
  Wallboard and building-sheet392,018386,880251,268179,8371,210,003
  Rubber goods and vulcanizing520,256465,392527,328350,4941,863,470
  Tinned plate and sheet metal628,674402,8361,158,639612,0232,802,172
  General engineering, iron and brass founding2,292,4581,717,7422,886,2361,936,3568,832,792
  Electrical and radio engineering817,638361,8611,991,772623,3233,794,594
  Agricultural and dairying machinery380,602170,576760,138491,9501,803,266
  Coachbuilding, motor and cycle engineering4,529,4301,519,9223,650,0523,045,94812,745,352
  Saddlery, harness, and leather goods304,96771,078383,598180,836940,479
  Ship and boat building121,53364,895153,648125,844465,920
  Chemical fertilizers522,853620,4871,742,522749,3223,635,184
  Paint and varnish349,718191,4101,019,008318,5981,878,734
  Polishes, matches, chemicals, &c.995,570439,6501,814,097785,3414,034,658
  Footwear675,681438,3891,108,954541,3212,764,345
  Woollen-mills450,307548,243921,917586,9742,507,441
  Hosiery and knitted goods456,407440,6991,059,636293,6302,250,372
  Textile and fur clothing2,917,431904,6824,400,4381,718,6279,941,178
  All other industries3,225,2272,473,3584,705,5812,166,40312,570,569
    Totals, 1947–4842,592,98190,219,73252,895,32837,163,120222,871,161

The table includes all items normally found in the assets of a manufacturing concern. Consequently, in considering the figures in the last column as depicting the total capital investment in manufacturing industry it must be remembered that not only proprietors' and shareholders' capital, so called, is represented, but also reserved profits, and, in addition, loans and advances and creditors' current accounts.

Over the ten years from 1937–38 to 1947–48 the total investment in fixed assets has increased from £72,738,722 by 83 per cent., and in current assets from £29,731,475 by 203 per cent. This disproportionate growth may be attributed partly to (1) the deferring of building and plant extensions during the war and post-war period due to shortages of materials, equipment, and man-power; and (2) the depreciation in the value of money referred to earlier: current assets are naturally expressed in terms of the present currency, but it is probable that fixed assets are considerably understated in terms of their present replacement cost, being still valued in terms of the currency at the time of purchase or erection.

The classification indicating the amount of capital investment in the various classes of industry is of interest. Since electric-supply undertakings and gasworks require heavy expenditure on construction work, plant, machinery, reticulation, &c., it is not surprising that the combined value of fixed assets for these two industries is such a large proportion of the whole, being actually 52 per cent. of the total recorded for all industries in 1947–48. Yet, for the same year, these industries contributed only 4.7 per cent. of the total value of output recorded.

ORGANIZATION OF INDUSTRY.—New Zealand's industrial progress has been fairly rapid, but industry is as yet organized on a relatively small scale.

The law in New Zealand restricts the membership of a partnership to not more than 20 persons, a private company to not fewer than 2 or more than 25 persons, and a public company to not fewer than 7 persons. Co-operation is characteristic of certain industries engaged in the processing of primary products, mainly butter and cheese manufacturing. Municipal enterprises are confined mainly to public-utility industries—e.g., gasworks and the generation and distribution of electricity—while the State operates the chief central hydro-electric generating stations, and the Government Printing Office.

Information as to the character of organization of the establishments engaged in factory production during 1947–48 is given in the following table.

Character of Organization.Number of Establishments.Persons engaged.Horsepower available.Cost of Materials used or operated upon.Value of Manufactures or Products.Added Value.
TotalPer Establishment.

*Average of totals.

   H.P.££££
Individual1,9319,24420,8944,811,3939,375,0704,563,9772,363
Private firm or partnership9545,59415,5032,668,6785,656,2772,987,5993,132
Public registered company80541,367168,96751,231,93180,448,54129,216,61036,294
Private registered company3,64072,381190,56270,041,353115,526,84745,485,49412,496
Co-operative and miscellaneous418,4,60932,74943,382,27943,382,27947,695,4954,313,21610,318
Municipal and Government2187,072891,2649,637,58413,453,1033,815,51917,502
    Totals7,966140,2671,319,939181,773,218272,155,33390,382,11511,346*

As would be expected, the average size of establishments operated by public registered companies is larger than in any other type of industrial organization, the added value per unit being almost three times as high as that for the next highest non-governmental type (private registered companies). Private companies, however, occupy a very high place, both numerically and in the share they contribute to the total added value created in New Zealand factories (50 per cent. in 1947–48, as compared with 32 per cent. in the case of public companies). Municipal and general governmental enterprises accounted for 4 per cent. of the total added value in 1947–48.

Examination of the statistics of added value over a series of years indicates that private companies have increased appreciably in relative importance, while the individual and partnership typos of organization have declined, and very little change has occurred in the percentage of total added value attributable to the operations of public companies, or municipal and general governmental undertakings.

CLASSIFICATION OF INDUSTRIES.—In the tables which follow, a classification of industries, according to the nature of the work carried on, is presented. Four classes are distinguished:—

  • Group I comprises those industries in close association with and dependent on pastoral farm production, being engaged in the processing of pastoral products for the market. The raw material undergoes only slight changes in the factory or works, and consequently the added value is small in relation to the cost of materials. The specific industries falling within this category are meat freezing and preserving; ham and bacon curing; butter, cheese, condensed milk, &c., making; sausage-casing making; fellmongering and woolscouring; and boiling down and manure making.

  • Group II includes those industries which provide public utility services under monopoly conditions so far as competition within the industry are concerned; they are gasworks and electricity generation and supply.

  • Group III consists generally of those industries classed as extractive, being concerned with the utilization of natural resources. The added value in these industries is large in proportion to the value of output, and represents principally wages. The following industries come within this group: fish-curing; sawmilling; lime crushing and burning and cement-making; brick, tile, and pottery making; pumice-insulation making; and phormium-flax milling. The processing of the agricultural product, linen flax, is also included in this group.

  • Group IV comprises all industries for which statistics are available and which do not come under the previous groups. It includes several industries, such as grain-milling, &c., which may be considered to be on the borderlines of Group I or Group III, and also several industries, such as motor and cycle engineering and repairing, &c., where repair work rather than manufacture in the narrow sense of the term predominates. In the industries in this group the raw material is, generally speaking, subjected to detailed and elaborate processing, and the “added value” is therefore relatively high.

An important purpose served by this classification of industries is the analysis of all factory production in New Zealand to permit of its segregation into the three functional production classes. These three classes are—

  1. “Primary” production, which consists of the production of the farm or extraction from mine, quarry, forest, &c., of raw material and its preliminary processing for the market. The product may be either food in consumable form (e.g., meat and fish) or merely the raw material for further processing. Of the groups distinguished above, I and III fall into this class and would be considered with statistics for farming and mining in assessing primary production in New Zealand.

  2. “Secondary” production comprises the more complete processing or transformation in factory or workshop of raw material derived from primary production into the final form required by the consumer (e.g., clothing or prepared foodstuffs) or producer (e.g., machinery). The industries in Group IV come into this class and may be said to cover practically all secondary production in New Zealand, with the exception of building construction.

  3. “Tertiary” production is the term given to the value produced by the transport, communication, wholesale and retail trade and other service industries. Group II industries, which fall into this class, measure a small part of production in this field.

It will be noted that the terms “primary,” “secondary,” and “tertiary” are indicative of function and not of economic importance; in fact, the more developed in the economy the higher are the proportions of workers engaged, and of value produced, in the “secondary” and “tertiary” production fields relative to the “primary.”

The following table shows the principal statistics for the various groups for the years 1947–48 and 1948–49. The annual survey of factory production was carried out on a sample basis for 1948–49, only the more important industries being covered. From the results of this survey and from allied data made available to the Census and Statistics Department, estimates of total production were made and are recorded below:—

Group.Persons engaged.Salaries and Wages paid.Materials used.Other Expenses of Operation.Products.Added Value.Land, Buildings, Plant, and Machinery,

*Not available.

  ££££££
1947–48
I17,8778,163,92387,167,7194,920,011101,784,66614,616,94712,398,285
II6,1202,547,8129,298,242438,78312,767,7273,469,48568,517,689
III12,5235,362,1975,239,4442,916,13814,926,3009,686,8565,939,931
IV103,74736,058,75780,067,81312,966,044142,676,64062,608,82745,956,808
Totals140,26752,132,689181,773,21821,240,976272,155,33390,382,115132,812,713
1948–49
I17,8008,700.00095,000,0005,300,000111,000,00016,000,000*
II6,3002,800,00010,600,000540,00014,300,0003,700,000*
III13,2005,900,0005,800,0003,300,00017,400,00011,600,000*
IV105,20038,600,00091,600,00014,210,000158,300,00066,700,000*
Totals142,50056,000,000203,000,00023,350,000301,000,00098,000,000*

The next table shows for the yours 1937–38 and 1947–48 the principal statistics of factories coming within Group IV—classified according to the value of output.

Factories with Value of Output as under.Number of Persons engaged.Value of Products.Output per Person engaged.
1937–38.1947–48.1937–38.1947–48.1937–38.1947–48.
NumberPer Cent. of Total.Number.Per Cent. of Total.£Per Cent. of Total.£Per Cent of Total.££
£ Under 5005130.72820.08127,8670.2728,6210.02249345
500– 9991,2691.774060.39442,1450.94179,1430.13348441
1,000– 2,4994,6276.472,6782.581,948,7744.161,743,7231.22421651
2,500– 4,9996,5119.106,0835.862,976,1726.354,877,9153.42457802
5,000– 9,9997,45310.4310,96410.573,722,4277.949,894,9296.93499902
10,000–14,9996,2008.678,2517.953,302,1597.048,112,5895.69533983
15,000–19,9994,4476.226,1175.902,342,4895.006,476,4264.545271,059
20,000–49,99913,48618.8820,98920.238,515,71018.1623,980,49616.816311,143
50,000–99,9999,30513.0216,82016.216,625,97514.1322,857,92416.027121,359
100,000 and over17,67424.7231,35730.2316,882,14336.0164,524,87445.229552,058
Totals, Group IV171,485100.00103747100.0046,885,861100.00142,676,640100.006561,375

The position of the larger scale establishments in this group of industries is striking in respect of both value of products and output per person engaged.

More detailed statistics of the foregoing groups are contained in the annual Statistical Report on Factory Production.

VOLUME OF FACTORY PRODUCTION.—In connection with the preparation of the series of index-numbers of volume of production, as given in Section 47 of this Year-Book, a special series covering volume of production of the factory industries has been constructed. Index-numbers have been computed from 1928–29 onwards for the factory industries as a whole, and also for each of the four groups into which these industries are divided under the immediately preceding heading. A description of the method adopted in computing these index-numbers of volume of factory production is given in the Statistical Report on Factory Production, 1944–45/1945–46 issue. The 1948–49 index-numbers are based on the sample survey of factory production carried out in that year and to which reference has been made earlier in this section.

INDEX-NUMBERS OF VOLUME OF FACTORY PRODUCTION Base: 1938–39 (= 100)

Production Year.Group I.Group II.Group III.Group IV.All Groups.
Total.Per Person engaged.Total.Per Person engaged.Total.Per Person engaged.Total.Per Person engaged.Total.Per Person engaged.
1928–2972786790929866907190
1929–3075817397959870917492
1930–3178877695779164886990
1931–3282987493498755856090
1932–33921067495468357886394
1933–3493947492548759896592
1934–35961017794648769937495
1935–3698998297799276938196
1936–371031028797888991989298
1937–381011009399949196979797
1938–39100100100100100100100100100100
1939–4011010711010610397111104110103
1940–4112010611911510499114102114103
1941–4212210212412510396116100116102
1942–43124104130137111103120106120107
1943–4411899138145118103126109125108
1944–45127103143145114102130107129108
1945–4612498147139112101134105131105
1946–4712899154141113104146107140106
1947–4812896158147131110159112151110
1948–4913199167151138111163113155112

The falling-off of factory production during the depression period and the subsequent recovery and expansion are illustrated in the accompanying diagram. The diagram is divided into two parts, the first referring to those industries coming within Group IV, as described under the previous heading, and the second to all factory industries. In addition to volume of production, added value is also shown, the index numbers employed being on the same base 1938–39 (= 100).

OVERTIME.—The amount of overtime worked in industries gives a useful indication as to whether an industry has been busy or slack. Statistics of this phase of factory production have been collected for a number of years, and the table presented next throws some interesting light on one aspect of industrial production during the last five years.

Overtime for the purpose of this collection is defined as all time worked in excess of the normal daily or weekly hours as prescribed under Arbitration Court awards, which now uniformly prescribe an eight-hour day and forty-hour week for all factory industries. The instructions expressly exclude from overtime all time worked within an employee's forty hours but paid for at special rates, instances being shift and week-end work. Nevertheless, it is possible that persons filling in returns may have counted some such time as overtime, but the error on this account should not be appreciable.

The following table summarizes overtime worked in factories in respect of wage-earning employees during the last five years.

Year.Overtime.Average Overtime Worked per Wage-earner.
Males.Females.Totals.Males.Females.
 Hours.Hours.Hours.Hours.Hours.
1943–4414,340,1532,751,53817,091,69119990
1944–4514,339,4822,659,61216,999,09418887
1945–4612,028,3091,868,34213,896,65114168
1946–4712,250,9291,394,97213,645,90113751
1947–4812,841,4621,133,31813,974,78013741

Almost 62.5 per cent. of the total overtime worked in 1947–48 was contributed by eleven industries—viz., meat freezing and preserving (2,578,624 hours); sawmilling (1,142,824 hours); general engineering, iron and brass founding (984,040 hours); electric supply (574,676 hours); coachbuilding, motor and cycle engineering (853,554 hours): printing and publishing (528,910 hours); butter, cheese, &c., manufacture (560,877 hours); clothing (423,167 hours); tinplate and sheet-metal (429,529 hours); brewing and malting (329,449 hours); and chemical fertilizers (336,920 hours).

The position in regard to overtime worked is further illustrated by the accompanying diagram, the period covered being 1929–30 to 1947–48.

SUMMARY OF OPERATIONS.—The following table contains an analysis of production costs in 1947–48, together with the value of products for each of the principal industries and for all industries.

Industry.Production Costs.Value of Products.Surplus prior to providing for Taxation.*
Salaries and Wages.Cost of All Materials used.Other Expenses of Operation.Total.

* Excess of value of products over production costs.

 £(000)£(000)£(000)£(000)£(000)£(000)
Meat freezing and preserving5,60536,3522,15844,11545,013898
Ham and bacon curing2802,4871572,9242,98864
Butter, cheese, condensed milk, &c.1,70342,7322,27246,70746,922215
Grainmilling3112,3101962,8173,033216
Biscuits and confectionery8292,3313583,5184,031513
Jam-making, fruit and vegetable preserving2921,2761531,7211,860139
Miscellaneous foods3441,6001842,1282,407279
Brewing and malting7372,2875463,5704,012442
Aerated waters, cordials, and ice-cream3357032421,2801,574294
Tobacco and cigarettes3402,2201892,7493,697948
Soap and candle2338551131,2011,376175
Boiling down, glue, and manures2399441821,3651,569204
Fellmongering and woolscouring2514,2821274,6604,805145
Tanning4301,2331531,8161,90892
Sawmilling, sash and door making3,8644,3141,7829,96011,0241,064
Coopering and casemaking1513654956558318
Woodware and turnery9471,7352912,9733,207234
Furniture and house furnishings1,9223,2434615,6266,038412
Paper bag and box making3761,4161511,9432,221278
Gasworks7498334392,0212,141120
Electric supply1,7998,465 10,26410,627363
Printing, publishing, and book-binding3,0613,5111,2157,7879,0031,216
Lime crushing and burning and cement5674266451,6381,825187
Brick, tile, and pottery6271303691,1261,234108
Pumice and concrete products4174841311,0321,151119
Wallboard and building-sheet3766832311,2901,501211
Rubber goods and vulcanizing5919642551,8101,961151
Tinned plate and sheet metal1,1202,6243234,0674,491424
General engineering, iron and brass founding3,8574,5201,2339,61010,6511,041
Electrical and radio engineering1,1222,7513684,2414,689448
Agricultural and dairying machinery5281,3211441,9932,437444
Coachbuilding, motor and cycle engineering4,70211,3821,57417,65819,0161,358
Saddlery, harness, and leather goods409748811,2381,32991
Ship and boat building5182631018821,028146
Chemical fertilizers5123,1274254,0644,337273
Paint and varnish2362,2541992,6892,897208
Polishes, matches, chemicals, &c.6742,2313123,2173,624407
Footwear1,6932,5833894,6654,921256
Woollen-mills8808853582,1232,370247
Hosiery and knitted goods6861,5562912,5332,785252
Textile and fur clothing4,4088,10291513,42514,372947
All other industries3,4129,2451,47914,13615,4971,361
    Totals52,133181,77321,241255,147272,15517,008

No valid conclusions as to the return on capital invested in different industries can be drawn from the “surplus” figures recorded in the above table in relation to the capital investment figures shown on page 419. Income-tax and social security taxes, levied on both companies and individuals, are not included in the expenses recorded above; nor, of course, are dividends on shares of incorporated companies. In some cases, however, more particularly in those industries included in the “heat, light, and power” group, where a majority of the undertakings are operated by the State or by local authorities, the capital charges, being interest and amortization charges on loans, are already included in the expenses recorded. Similarly, charges in respect of rented assets, included in the capital investment figures, are already included as rent under the heading of “Other Expenses.”

DETAILS OF CERTAIN PRINCIPAL INDUSTRIES.—The principal statistics regarding leading factory industries for the last three years available are set out in the following pages. Fuller details are given in the annual Statistical Report on Factory Production.

1946–47.1947–48.1948–49.

* Includes boned mutton: 1948–49 totals 103,833 cwt., valued at £292,220.

† Not available.

* The large increase recorded in the values of materials and products from the year 1947–48 onward is attributable to the incorporation of subsidies in the guaranteed prices paid to dairy factories. These were previously paid direct to farmers.

† Includes Australian flour for blending: 5,639 tons in 1946–47, 239 tons in 1947–48, and 3,554 tons in 1948–49.

* Not included in 1948–49 sample survey.

† Including beer duty.

* Not Included in 1948–49 sample survey.

† Excludes the allied industries of range-making, wire-working, and nail manufacture forming part of the groups of industries under this title in previous pages.

* Including full-fashioned hose, 122,583 dozen pair for 1948–49.

† Including ankle-length hose, 66,531 dozen pair for 1948–49.

‡ Not Included in 1948–49 sample survey.

Number of—Meat Freezing and Preserving
  Works515251
  Persons engaged11,26811,82111,564
Salaries and wages paid £5,033,3765,605,2935,825,754
Cost of materials used £31,952,83636,351,87237,072,187
Other expenses £1,988,8192,158,2512,162,021
Mutton carcases No.3,072,0812,824,7242,772,962
£3,375,4693,405,8193,476,138
Lamb carcases No.11,453,53312,209,17412,068,645
£15,066,55917,251,52118,286,744
Mutton and lamb pieces* Cwt.113,43393,196124,238
£241,946206,308312,730
Quarter beef (bone-in weights) Cwt.1,423,9891,397,5801,012,457
£3,530,6263,638,2042,843,656
Boner beef (boned-out weights) Cwt.458,385477,40248.6,069
£960,0891,163,9701,351,447
Bobby veal (boned-out weights) Cwt.151,776167,087180,731
£338,340370,119451,541
Other veal (bone-in weights) Cwt.28,00538,58527,715
£55,19679,21561,398
Pork Cwt.377,928394,127425,681
£1,807,4702,041,2032,159,265
Edible offals Cwt.353,440369,115360,456
£1,231,8181,297,1571,277,872
Canned and dehydrated meats Cwt.184,395183,385166,945
£1,565,3981,380,9351,492,955
Wool lb.46,288,56345,290,00346,293,360
£4,367,9405,117,2455,489,693
Tallow Cwt.751,131669,471655,302
£1,096,6541,275,0681,242,552
Meat-meal Cwt.286,935287,535272,905
£192,881213,111226,241
Manures Cwt.701,598588,258568,531
£278,240274,872270,161
Hides—   
  Ox and cow No.503,058503,907406,738
£829,983812,195671,083
  Bobby calf No.1,004,2781,074,3621,084,234
£764,7631,129,516984,859
  Other calf No.18,60824,56218,164
£18,68524,90918,725
Pelts No.15,231,53415,678,76315,580,945
£2,353,4472,339,6533,094,627
Rabbit carcases and skins £635,880559,843429,479
Runners and casings £1,327,5191,732,1521,674,953
Total value of output £40,482,86545,013,05346,188,643
Number of—Ham and Bacon Curing
  Works444342
  Persons engaged669666716
Salaries and wages paid £268,175279,847310,456
Pigs dealt with—   
  Carcases No.375,130355,631354,499
  Cost £2,019,4252,167,7742,379,256
Cost of other materials used £183,238318,782363,464
Other expenses £136,279157,253161,841
Ham and bacon Cwt.305,269282,008283,277
Frozen pork Cwt.85,54973,70472,655
Lard Cwt.14,83714,83313,576
Small goods Cwt.91,09986,902
Other fats Cwt.7,7417,4815,053
Total value of output £2,715,5222,988,4053,300,664
Butter, Cheese, and Condensed-milk Factories*
Number of—   
  Factories389385383
  Persons engaged4,0594,0884,240
Salaries and wages paid £1,620,3371,703,4571,963,120
Number of suppliers54,00053,82253,930
Buttermaking—   
  Butterfat in milk purchased lb.(000)22,03532,13738,092
  Butterfat in cream purchased lb.(000)241,217242,816261,034
  Butterfat in whey-cream purchased lb.(000)1,7341,6101,882
Butterfat recovered from factories own whey lb.(000)2,8092,9343,136
Cheesemaking—   
  Quantity of milk lb.(000)1,848,7701,774,4602,002,091
  Butterfat in milk lb.(000)80,91277,31988,548
Butterfat used in condensed and dried milk, &c. lb.(000)5,0535,4936,722
Butterfat in whole cream sold lb.(000)1,6722,0232,275
Cost of butterfat £25,914,43040,714,71546,630,106
Cost of other materials £1,687,8252,017,3142,510,008
Milk and cream cartage £579,503629,768698,083
Other expenses £1,511,5111,641,8411,904,204
Creamery butter—   
  Quantity Cwt.2,864,5122,990,4243,255,777
  Value £20,693,24332,634,43336,753,511
Whey butter—   
  Quantity Cwt.50,24949,20554,505
  Value £326,301512,759586,791
Cheese—   
  Quantity Cwt.1,832,9161,728,9021,989,847
  Value £7,421,26410,022,71611,970,631
Condensed and dried milk, &c—   
  Quantity Cwt.560,759592,323748,883
  Value £2,172,7492,448,7453,080,927
Value of other products £890,5251,303,2481,477,642
Total value of output £31,504,08246,921,90153,869,502
Grain-mills
Number of—   
  Mills464545
  Persons engaged730739727
Salaries and wages paid £271,136310,706312,921
Wheat used Bushels6,388,4737,153,0747,040,311
Total grain £1,875,3442,044,7582,078,966
Cost of other materials £280,613265,234464,445
Other expenses £183,974195,787208,625
Flour produced Tons151,098162,702162,334
Wheatmeal and wholemeal Tons9,6649,5519,209
Bran and pollard Tons37,38141,05640,454
Oatmeal Tons6,9165,4434,354
Other oaten products for human consumption Tons4,0743,8783,471
Total value of output £2,804,6443,032,9713,279,994
Biscuit and Confectionery Factories
Number of—   
  Works657380
  Persons engaged2,4692,5232,682
Salaries and wages paid £741,976829,021917,519
Flour used Tons9,73210,1819,823
Sugar used Tons8,2988,76110,017
Cost of all materials used £1,820,7032,330,9152,865,001
Other expenses £309,025358,418392,914
Biscuits, grain products, and ice-cream cones Tons15,41416,34816,444
Confectionery Tons12,01012,63514,453
Total value of output £3,390,3484,031,1964,592,251
Jam-making and Fruit and Vegetable-preserving Factories
Number of—   
  Works282928
  Persons engaged897916940
Salaries and wages paid £272,864291,603325,918
Fruit used Tons8,5318,1858,966
Vegetables used Tons8,93612,20712,579
Sugar used Tons4,8274,9444,559
Cost of all materials £990,7401,275,7591,551,754
Other expenses £127,003152,571151,800
Jams and jellies Cwt.137,344133,462118,349
Canned or bottled fruit Cwt.21,90733,91744,874
Pulped fruit Cwt.10,48915,97314,102
Canned vegetables Cwt.114,032124,132196,568
Total value of output £1,520,4391,860,0442,157,681
Number of—Sauce, Pickle, and Vinegar Factories*
  Works1818 
  Persons engaged377341 
Salaries and wages paid £112,403106,758 
Cost of materials used £252,116269,947 
Other expenses £51,27653,807 
Pickles—In bottles Dozen94,46265,643 
Pickles—In bulk Gallons10,19910,651 
Sauces—In bottles Dozen233,902199,766 
Sauces—In bulk Gallons27,17128,588 
Vinegar Gallons674,014708,231 
Total value of output £469,724475,624 
Number of—Breweries
  Establishments383837
  Persons engaged1,4701,4861,475
Salaries and wages paid £649,694673,378696,266
Barley used in production of malt Bushels399,842386,201468,783
Malt purchased Bushels747,384758,579746,558
Hops used Cwt.6,9977,0486,916
Sugar used Cwt.23,19624,34626,382
Total cost of materials used £1,817,2121,902,3011,927,388
Beer duty £4,307,4774,425,2444,451,256
Other expenses £508,144511,998572,286
Ale brewed Gallons28,896,85329,525,53930,180,378
Stout brewed Gallons1,043,720973,714898,561
Value of output £7,803,6577,938,6808,015,165
Aerated-water and Cordial Factories*
Number of—   
  Works10399102
  Persona engaged508524538
Salaries and wages paid £153,906173,866196,500
Sugar used Tons1,6711,9262,132
Total cost of materials used £236,775286,962337,754
Other expenses £73,94982,822100,307
Aerated waters—In bottles Dozen3,828,6214,271,0554,054,525
Aerated waters—In bulk Gallons104,123105,206174,286
Cordials—In bottles Dozen85,434118,949125,126
Cordials—In bulk Gallons37,92718,11433,339
Total value of output £562,249662,320737,389
Soap and Candle Works*
Number of—   
  Works242524
  Persons engaged704732701
Salaries and wages paid £205,740220,327232,643
Cost of materials used £649,898734,891855,196
Other expenses £125,072121,993112,662
Soap Tons11,02410,2977,200
Toilet soap Tons2,2432,6812,898
Soap-powder (including washing-powder) Tons5,9547,1547,032
Candles lb.1,179,1721,043,1041,458,318
Total value of output £1,157,9831,322,9601,375,716
Boiling-down, Glue, and Manure Works*
Number of—   
  Works383837
  Persons engaged528543555
Salaries and wages paid £204,774208,046239,006
Host of materials used £538,759607,797944,271
Other expenses £137,015155,898181,940
Tallow Cwt.162,897138,827133,957
Manures Cwt.129,427116,090114,680
Oil (whale, neatsfoot, &c.) Gallons402,269454,116531,493
Meatmeal Cwt.54,32159,65563,304
Total value of output £1,036,1411,104,8481,568,644
Fellmongering and Woolscouring*
Number of—   
  Works323328
  Persons engaged544534534
Salaries and wages paid £209,992212,288250,831
Cost of materials used £2,925,6823,514,7394,281,835
Materials operated upon—   
  Sheep-skins No.763,936765,473619,793
  Greasy wool lb.54,203,87955,572,68954,728,436
Other expenses £82,01096,233126,528
Principal products—   
  Scoured and slipe wool lb.38,173,44638,598,88637,875,008
  Pelts No.96,26096,260117,165
  Pickled pelts No.632,310676,934475,996
Total value of output £3,279,8043,931,9174,804,508
Tanning
Number of—   
  Works192018
  Persons engaged940993909
Salaries and wages paid £376,624429,945408,438
Cost of materials used £1,090,3501,232,9191,092,231
Materials operated upon—   
  Sheep-skins No.336,887466,873120,489
  Pelts No.959,853885,786634,920
  Hides (calf and yearling) No.320,323326,317356,836
  Other hides No.298,406376,381388,828
Bark used Tons17118963
Cost of bark extract used £108,017121,236128,543
Other expenses £128,900152,500153,968
Output—   
  Leather sold by weight lb.7,437,4397,580,3077,176,182
  Leather sold by area Sq. ft.16,748,16015,487,82614,086,006
  Basils lb.108,88693,27950,214
  Scoured and slipe wool lb.220,156292,71038,486
Total value of output £1,722,1431,907,5331,695,297
Sawmills, Sash and Door Factories
Number of—   
  Mills487594557
  Persons engaged7,7888,6929,479
Salaries and wages paid £3,120,9913,864,3214,371,771
Cost of materials used £3,543,5354,314,1824,482,870
Other expenses £1,430,3711,782,2822,017,429
Sawn timber—   
  Quantity Ft. b.m. (000)353,955428,114464,545
  Value £4,919,8246,521,0107,689,297
Posts, rails, &c. £145,414459,270479,775
Planed flooring, skirting, &c.—   
  Quantity Ft. b.m. (000)67,83263,21876,182
  Value £2,034,4411,858,1352,380,349
Doors and sashes £251,038341,878276,028
Other products £1,465,1231,843,6741,982,006
Total value of output £8,815,84011,023,96712,807,455
Cooperages and Packing-case Factories*
Number of—   
  Establishments2727 
  Persons engaged391372 
Salaries and wages paid £138,524150,554 
Cost of materials used £385,960365,494 
Other expenses £45,19349,064 
Casks No.35,26841,661 
Butter-boxes No.1,716,3711,230,055 
Cheese-crates No.341,970488,325 
Fruit and packing cases No.2,263,4131,783,494 
Total value of output £587,579582,694 
Furniture-making Works*
Number of—   
  Factories548595 
  Persons engaged4,8215,122 
Salaries and wages paid £1,468,5611,718,332 
Cost of materials used £1,978,5092,447,745 
Other expenses £308,744367,940 
Total value of output £4,062,5194,826,933 
Gasworks
Number of—   
  Works444444
  Persons engaged1,8001,7781,794
Salaries and wages paid £700,598748,938816,967
Coal used—   
  Quantity Tons314,702323,428317,877
  Cost £761,134823,903953,474
Cost of other materials £7,1719,37410,655
Other expenses £403,246438,783540,481
Total gas generated 1,000 cub. ft.5,328,6445,457,4985,462,745
Gas sold 1,000 cub. ft.4,637,3964,768,8824,692,370
Coke sold Tons88,55491,60594,355
Tar sold Gallons2,331,8592,545,1242,578,444
Total expenditure £1,872,1492,020,9982,249,812
Total revenue £2,053,6072,140,6212,321,577
Printing and Publishing Establishments*
Number of works348358 
Persons engaged—   
  Males5,6126,049 
  Females2,0932,178 
Salaries and wages paid—   
  To males £2,246,9052,596,121 
  To females £400,082464,840 
Cost of materials used £2,764,5173,511,281 
Other expenses £1,013,1771,215,442 
Newspaper revenue £3,297,3523,616,719 
Job-printing £3,339,6954,090,190 
Total value of output £7,723,1589,003,338 
Lime and Cement Works
Number of—   
  Works99100101
  Persons engaged1,4031,3761,396
Salaries and wages paid £528,918566,572579,412
Cost of materials used £350,173426,412814,304
Other expenses £553,275644,666687,939
Cement Tons219,471226,837243,124
Agricultural lime Tons896,7721,011,8981,029,408
Total value of output £1,606,7341,825,2982,337,707
Brick, Tile, and Pottery Works
Number of—   
  Works565856
  Persons engaged1,4811,6101,596
Salaries and wages paid £495,823627,030696,894
Cost of materials used £82,091129,542180,646
Other expenses £312,063369,447462,115
Bricks manufactured—   
  Common No. (000)23,79525,11828,504
  Fire No. (000)2,0922,0493,465
  Other No. (000)1,5961,8291,531
  Value of all bricks £221,392277,193389,958
Drainpipes £313,667373,429419,670
Roofing-tiles £86,348110,543102,621
Porcelain insulators £124,520144,352183,901
Domestic earthenware £159,308205,058230,762
Total value of output £997,6861,234,3621,438,116
Tinware and Sheet-metal Works*
Number of—   
  Works138144152
  Persons engaged2,5762,7412,901
Salaries and wages paid £812,100940,1671,120,392
Cost of materials used £1,746,1391,933,5052,624,184
Other expenses £236,573269,746323,327
Principal products—   
  Tin canisters and containers £1,335,0341,275,8041,857,370
  Other tinned ware £140,722322,358280,806
  Copperware £263,510273,9.07366,582
  Leadware £167,693235,425438,660
  Spouting, ridging, and down-piping £128,312135,170153,760
  Other galvanized ware £170,147192,267220,464
Total value of output £2,986,1473,414,1294,491,499
General Engineering, Iron and Brass Founding*
Number of—   
  Works348432450
  Persons engaged7,7968,2378,396
Salaries and wages paid £2,781,2872,933,9543,281,822
Cost of materials used £2,828,7632,705,9663,490,342
Other expenses £854,506934,4191,070,132
Total value of output £7,125,5807,327,0748,731,892
Agricultural and Dairying Machinery and Implement Making*
Number of—   
  Works858481
  Persons engaged1,4741,4771,404
Salaries and wages paid £499,083494,916527,515
Cost of materials used £1,331,8311,051,4911,320,776
Other expenses £107,995113,936144,257
Total value of output £2,176,3022,049,8962,437,153
Motor and Cycle Engineering, Bodybuilding and Assembly*
Number of—   
  Works1,3801,5611,606
  Persons engaged9,13511,61612,935
Salaries and wages paid £2,802,6123,682,1064,701,522
Cost of materials used £3,203,1046,274,26711,381,668
Other expenses £837,6411,153,6471,574,335
Value of work done—   
  Bodybuilding £994,2041,372,2331,719,629
  Motor engineering, assembly, &c. £6,391,69210,285,24916,743,571
  Other £120,557288,848553,244
Ship and Boat Building*
Number of—   
  Establishments363638
  Persons engaged1,4281,0521,119
Salaries and wages paid £592,216430,867518,189
Cost of materials used £234,424228,121263,142
Other expenses £133,67592,735100,578
Total value of output £1,041,263784,2521,027,972
Number of—Chemical-fertilizer Works
  Works999
  Persons engaged1,1091,1111,149
Salaries and wages paid £464,698512,444543,762
Rock phosphate used Tons335,730347,766356,579
Sulphur Tons61,13464,06964,114
Nitrate of soda Tons2,0272,3042,419
Potash Tons455843952
Serpentine rock Tons35,65831,68840,415
Total cost of materials used £1,470,8143,127,1634,114,201
Other expenses £319,594424,508509,208
Fertilizers Tons602,478619,377631,313
Superphosphate content of fertilizers (estimated) Tons534,224553,889557,653
Acids Tons2,4502,6092,710
Total value of output £2,582,5094,336,6925,495,390
Footwear Factories
Number of works101113124
Number of persons engaged—   
  Males2,9313,1053,063
  Females2,0362,1542,220
Salaries and wages paid—   
  To males £1,072,7271,227,0701,303,394
  To females £405,337466,374501,826
Cost of materials used—   
  Upper leather—   
    Imported £190,116352,623325,249
    New Zealand £511,634657,946715,144
  Sole leather £543,739511,518463,836
  Other materials £755,2861,060,5771,082,542
  Total £2,000,7752,582,6642,586,771
Other expenses £333,643389,335415,306
Output—   
  Adults' boots and shoes Pairs (000)2,0022,1432,135
  Children's boots and shoos (including sandals) Pairs (000)8621,013949
  Sandals (adults' only) Pairs (000)288168178
  Slippers Pairs (000)1,8882,0651,793
Total value of output £4,018,4714,920,5694,996,393
Woollen-mills
Number of—   
  Mills212020
  Persons engaged2,9982,6702,656
Salaries and wages paid £890,885880,336935,373
Greasy wool used—   
  Quantity lb. (000)10,1029,1639,747
  Cost £640,840649,420654,998
Cost of other materials used £187,750235,508274,569
Other expenses £370,018358,451379,933
Output—   
  Tweed and cloth Yards2,183,8512,247,0022,282,112
  Flannel Yards604,370459,712516,621
  Blankets Pairs135,101124,667124,228
  Hosiery Doz. pairs87,99186,06792,221
  Rugs and shawls No.11,8208,56010,788
  Yarn lb.1,431,1511,417,0171,353,647
  Knitted garments £264,156237,908259,376
Total value of output £2,389,2092,369,7052,509,378
Number of—Hosiery and Knitted Goods Factories  
  Works566064
  Persons engaged2,2092,2012,453
Salaries and wages paid £599,324686,236801,319
Cost of materials used £1,143,0261,555,5721,732,157
Other expenses £221,154290,560400,567
Output—   
  Hose Doz. pairs221,140243,965219,321*
  Half-hose Doz. pairs261,419316,921295,357
Knitted garments £1,379,4511,647,3941,902,461
Total value of output £2,276,2732,785,1623,166,577
Clothing Factories   
Number of works604647 
Number of persons engaged—   
  Males2,6252,907 
  Females12,80013,664 
Salaries and wages paid—   
To males £1,106,2361,318,486 
To females £2,420,6792,912,330 
Cost of materials used £5,259,5237,735,844 
Other expenses £723,316879,696 
Output—   
  Suits No.140,926155,356 
  Shirts Dozen148,414207,270 
  Hats and caps (men's and boys') Dozen36,68546,059 
  Dresses No.1,120,4551,196,859 
  Hats (women's) Dozen67,70072,021 
Total value of output £10,342,77113,726,386 

Chapter 23. SECTION 23—BUILDING, CONSTRUCTION, AND HOUSING

Table of Contents

WITHIN the short span of a century New Zealand has been transformed from a virgin wilderness into a country whoso community enjoys the amenities of modern social and industrial life. In the pioneer stages of colonization, the development of the resources of the country demanded an almost mushroom growth of building and construction activity in the formation of railways, roads, and harbours, in addition to provision for the housing needs of a rapidly growing population. More recently the utilization of vast resources of water-power has involved major schemes of construction of hydro-electric stations in various parts of New Zealand, and the reticulation of practically the whole of the inhabited portion of the country. Land-settlement and the growth of factory industries have both required extensive building and construction works, rural and urban, while the increasing housing needs of a growing population are reflected in a steady long-term increase in the building of dwellings. The increase in trade and industry, with the resultant growth of the towns, has been accompanied by extensive construction of factories, shops, offices, warehouses, &c.

With the passing of the early stages of social and industrial development, replacements of obsolete and obsolescent structures and general maintenance will occupy a larger place in building and construction activity than was the case formerly, although there have been new avenues of industry requiring further major building and construction operations. For example, the recent development of aviation in New Zealand required the formation of a chain of landing-grounds and air-ports, a work which became more urgent with the outbreak of war. The increase in motor traffic has necessitated a reorientation of raiding policy, much new construction and extensive alterations to the surfaces of existing roads being required. The diversification of factory industries in recent years has involved extensive building operations—particularly in the engineering trades—while modernization of factory equipment and of shop and office accommodation has been responsible for a further appreciable proportion of building activity.

The building and construction industry is particularly sensitive to cyclical fluctuations in business conditions, and it is not surprising to note that in New Zealand marked changes in building activity coincide with the ebb and flow of trade and industry. Governmental policy in regard to public-works construction is, and has been, directed towards accelerating State activity in this direction in times of depression and in the slack seasons of the year with a view to alleviating unemployment. While considerable success has been achieved on various occasions, at other times the expansion of public works has been limited for financial reasons. Private building suffered severely during 1931–33, but revived substantially, particularly after 1935, to reach its pre-war peak in 1938–39. Thereafter a progressive decline in the importation of essential materials, notably steel and iron, took place, with consequential effects on normal large-scale construction. The falling-oil in operations, although substantial, during the next two years was not so heavy as might have been expected. After 1941, however, the full effect of war began to have its effect, while Japan's entry into the war accentuated the diversion of men and building-materials to aerodromes and other defence constructional work. This diversion was maintained as the necessity arose to provide accommodation for Allied Forces using New Zealand as a base for operations in the Pacific area. The cumulative effect of these circumstances may be gauged from the record low level of building permits for urban districts in 1942–43, the value of which, £2,661,947, may be compared with the 1938–39 figure of £12,126,458. Thereafter, with the completion of the major portion of defence programmes, a distinct revival of civil building took place, the improvement being progressively maintained despite the hampering effects of shortages of skilled labour and many essential building commodities. By 1944–45 the annual value had exceeded the highest pre-war figure, although it would appear that much of the increase over earlier years was a reflection of higher costs. If the number of permits for new dwellings can be safely used as a guide, then by the 1946–47 year building activity both in volume and value bad by far exceeded pre-war figures. Since then, building activity has continued at higher levels in each successive year.

The value of building permits in urban districts for 1948–49 totalled £26,430,453, this figure being surpassed in 1949–50 with a value of £30,365,528.

The following table is of interest in that it illustrates, over a period with general characteristics of rising costs and prices, the increasing cost of building under the State housing scheme a typical four-roomed dwelling of 839 square feet floor space on a flat section. The amounts shown are exclusive of the cost of the section itself. This information has been drawn from the annual report of the State Advances Corporation of New Zealand for the year ended 31st March, 1950 (parliamentary paper B.–13).

Year.Cost of Construction of Typical Four-roomed State Dwelling. (£)

* Amount relates to a house with a slightly greater floor urea, but otherwise comparable.

1938983
1939993
19401,051
19411,182
19421,172
19431,350
19441,419
19451,452
1946*1,585
19471,567
19481,660
19491,798
19501,829

Compared with 1938, the 1950 figure shows an increase of £846 or 86 per cent.

An interesting feature of building and construction activity in New Zealand is the absence of a marked seasonal decline in the winter months, since winters are not sufficiently severe, except in a few districts, to interfere materially with the building of dwellings or other construction work.

The function of the State in the stimulation of building and construction enterprise is twofold. Public works, involving both new construction and the maintenance of existing works, are in themselves responsible for a large percentage of the total annual building and construction activity. Furthermore, the State encourages private building in various ways—for example, the State Advances Corporation (see Section 25D of this Year-Book) has done much to facilitate home building and land development. As will be seen under a subsequent heading, a comprehensive programme of house-building by the State has been in operation since 1937.

Borough Councils are authorized under Part I of the Municipal Corporations Amendment Acts of 1948 and 1950 to provide loans for housing purposes up to a limit of £2,020; to subdivide for such purposes any land vested in a Council and not held by it in trust for any particular purpose other than housing; to sell or lease allotments for housing purposes; and to borrow money to meet the cost of acquiring, subdividing, and developing the land and constructing streets.

A collection of annual statistics of building permits issued in cities, boroughs, and town districts was initiated in 1921–22, while a monthly collection on a more restricted scale was begun in 1926. From 1925 to 1941 an annual collection of returns from builders and contractors was obtained, affording, inter alia, an analysis of costs, &c., not available from the building permit statistics. The results of a further collection undertaken in 1948 are shown at the end of this section.

THE HOUSING SITUATION.—As will be obvious from a perusal of the statistics of building permits and building construction given later on in this section, building operations fell to small proportions during the depression years. With the advent of better times, accompanied by a large increase in the number of marriages and a growing tendency to discontinue the sharing of homes by two families, there arose in many cities and towns a housing demand far in excess of the available supply. The position was aggravated by the fact that a considerable proportion of the existing dwellings did not comply with modern standards of comfort, convenience, and sanitation.

Although the Government's housing programme, inaugurated in March, 1937, had made substantial progress and had added considerably to the numbers of houses that were being built, the outbreak of war further aggravated the problem. The transfer of men and materials to urgent defence works, referred to earlier, reduced dwelling construction to almost negligible proportions for a period. The years 1939 and 1940 witnessed a substantial increase in the number of marriages, and, although there was a considerable fall during the next three years, the termination of the war saw a substantial rise, culminating in a new record in 1946. These factors, together with the rehabilitation of ex-servicemen generally, have resulted in an unprecedented demand for housing accommodation. According to the annual report of the State Advances Corporation for the year 1949–50 there were 45,370 unsatisfied applications for tenancies of State rental houses at 31st March, 1950. The report states, however, that not all of these can be considered as being from persons genuinely in need of housing accommodation as many of them are already reasonably housed.

Housing Survey.—In 1935 a Housing Survey Act was passed as a preliminary towards a planned programme of housing reform. This Act applied to (1) the Councils or Boards of all boroughs and town districts with not less than 1,000 population, (2) two suburban Road Hoards, and (3) any other local authority to which the Act might be applied by the Governor-General in Council. Each authority was required to make a housing survey of its district or—with ministerial approval—of a defined area or areas within the district.

Summarized results of the housing surveys carried out by 31st March, 1939, in 115 local districts are as follows: —

Total population901,353
Total dwellings225,363
Buildings used as dwellings: Unsatisfactory, but repairable31,663
Buildings used as dwellings: Totally unsatisfactory6,827
Dwelling units in which equipment is only partly satisfactory23,768
Dwelling units in which equipment is totally unsatisfactory20,096
Dwellings providing accommodation below the minimum standard27,214
  Surplus persons accommodated in dwellings below minimum standard68,405
Dwellings overcrowded9,835
  Surplus persons in overcrowded dwellings14,761

The classification of dwellings as to (1) whether satisfactory as regards physical fitness, (2) whether providing adequate accommodation, and (3) whether overcrowded, was made on the basis of standards laid down by regulations under the Housing Survey Act. The standards of physical condition and of minimum accommodation are too detailed for repetition here, but a résumé of the latter will be found on page 550 of the 1940 issue of the Year-Book. Of the 38,490 dwellings which failed to measure up to the standards of physical condition in one or more respects, in 31,663 cases the deficiencies were repairable. Equipment was wholly or partly unsatisfactory in 43,864 of the houses examined, while some 27,214 dwellings failed to reach the standard of minimum accommodation laid down.

Statistics of 1945 Census.—The data given in the following tables, which present-further 1945 census results to those shown on pages 40–52, afford a general background to much of the building and construction activity, particularly in the direction of housing, outlined elsewhere in this section.

The table presented below affords a detailed classification of those dwellings which were inhabited at the date of the census, while the numbers of uninhabited dwellings and those in course of erection have also been incorporated in the table.

NATURE OF DWELLING

Nature of Dwelling.Numbers.Percentage of Total Inhabited.
1936.1945.1936.1945.
    A. Dwellings Occupied by Europeans    
Permanent private dwellings—    
Private house, not partly sub-let310,524351,03486.1585.07
Private house, partly sub-let1,2431,6970.340.41
Flat12,92328,0083.596.79
Combined shop and dwelling7,5307,3642.091.78
Rooms attached to offices, &c.2,2399790.620.24
Bach15,22213,2594.223.21
Other (including mobile residence)2249930.060.24
    Totals349,905403,33497.0797.74
Temporary dwellings: Totals2,8643670.800.09
Non-private dwellings—    
  Hotel (licensed or private), boardinghouse, apartment-house, &c.5,6327,1721.561.74
  Hospital, public or private4825190.130.12
  Camp (military, P.W.D., &c.)8663570.240.09
  Other (including residential club, gaol, educational institution, barracks, &c.)7068930.200.22
    Totals7,6868,9412.132.17
  Grand totals, dwellings occupied by Europeans360,455412,642100.00100.00
B. Maori Dwellings    
Dwellings occupied by Maoris13,79316,028  
C. Uninhabited Dwellings    
Dwellings with occupants temporarily absent5,7845,919  
Week-end or summer dwellings8,43511,047  
Untenanted dwellings6,5947,136  
    Totals20,81324,102  
D. Building    
Dwellings in course of erection1,4845,362  

Chief points of interest emerging from this table are the 41,000 additional private houses, the greater proportion of flats in the total of inhabited dwellings, decreases in rooms attached to offices, &c., and camps, and an increase in the group total covering hotels, boardinghouses, apartment-houses, &c., in 1945 as compared with 1936.

The flat increment was not occasioned solely by augmented construction, but was largely a function of subdivision of larger premises. A glance at the table illustrating changes in the size of private dwellings discloses that houses of seven or more rooms declined from 11.56 per cent. of the total in 1936 to 7.73 per cent. in 1945. A considerable portion of the actual decrease in numbers recorded must have gone to swell the total of flats, apartment-houses, &c. In fact, construction of new flats approximated only one-quarter of the difference between the 1936 and 1945 totals.

The smaller totals associated with rooms attached to offices, &c., camps, and temporary dwellings must be considered against the background of the 1936 figures. During the depression years many camps had been established in various rural areas, while a revival of gold-seeking had been responsible for the inhabitation of many temporary dwellings. The same factor of depression probably inflated the numbers of rooms attached to offices, &c., used as places of habitation. The return of more prosperous conditions and the withdrawal of civilians for the armed services and urban essential industries doubtless accounted for the reductions effected.

Permanent Private Dwellings.—In the tables following which deal with tenure, size of dwelling, total occupants, electricity supply, material of outer walls, amenities, and distances from neighbourhood shopping facilities, public transport service and public primary school, the tabulation is restricted to permanent private dwellings occupied by Europeans; certain details of dwellings occupied by Maoris will be found following these tables.

TENURE OF DWELLING

Tenure.Numbers.Percentage of Total Specified.
1936.1945.1936.1945.
Renting or leasing135,194142,71738.8335.44
Free with job37,18424,69010.686.13
Loaned without payment 6,475 1.61
Buying on time payment or with table mortgage57,61872,21716.5517.93
Buying with flat mortgage54,49554,26515.6513.47
Owned without mortgage63,651102,35818.2925.42
Not specified1,763612  
    Totals349,905403,334100.00100.00

The intercensal period has been one of interesting changes in the development of the different forms of tenure. The principal change occurs in the relative importance of rented or leased dwellings when compared with those owned without mortgage or being bought on time payment or table mortgage. In 1936 the two latter classes comprised 34.84 per cent. of total inhabited dwellings, as against 38.83 per cent. rented, &c., dwellings. By 1945 the rented class had lost its dominant position, constituting only 35.44 per cent., compared with 43.35 per cent. of those owned outright or subject to table mortgage. The following influences were probably among those most responsible—namely, generally prosperous conditions enabling direct purchase in some instances, and a decline in speculative building other than for sale, while there appears to have been a preference towards purchase by means of table rather than by flat mortgage. In fact, there were 230 fewer dwellings with fiat mortgages in 1945 than there were recorded in 1936. On the other hand, dwellings subject to table mortgages increased by 14,599.

The 1936 figures for dwellings provided free with the job or loaned without payment were probably greater than usual due to the check on the urban drift imposed by depression conditions and the fact that this class of tenure is mainly found in rural areas. However by 1945, under the impetus derived from a world war, the urban drift had been accelerated, thus tending to lower the numbers of rent-free dwellings. The difference was approximately 6,000 over the period. No doubt the change-over from a March to a September census played some part also, while the economic situation of recent years would tend to reduce the proportion of rent-free dwellings in any case.

SIZE OF DWELLING

Number of Rooms.Numbers.Percentage of Total Specified.
1936.1945.1936.1945.
19,7437,9392.791.98
214,32616,1354.114.02
321,55631,7566.187.90
489,666112,50525.7228.00
5107,247136,93830.7634.08
665,80865,44418.8816.29
722,79219,4946.544.85
89,6046,8662.751.71
93,7902,4001.090.60
102,0581,1510.590.29
11 and over2,0681,1450.590.28
Not specified1,2471,561  
    Totals349,905403,334100.00100.00

The outstanding feature of the above table lies in the marked concentration of medium-sized dwellings. Single-roomed dwellings decreased by 1,804, while those with six or more rooms were 9,620 fewer than in the earlier period. Although there were 53,429 additional private dwellings inhabited since 1936, the three-to five-roomed category gain was 62,730, clear evidence that not only was now construction largely confined within this range, but also that some larger units had undergone subdivision in the interim (note reference made in comments on the table on page 439. As a proportion of the total, dwellings of from three to six rooms rose from 81.54 per cent. in 1936 to 86.27 per cent. in 1945.

OCCUPANTS OF DWELLINGS

Total Occupants.Number of Cases.Percentage of Total.
1936.1945.1936.1945.
127,06236,5767.739.07
265,68490,43418.7722.42
372,98087,42820.8621.68
468,58479,79019.6019.78
549,48352,92714.1413.12
630,94628,9268.857.17
718,26114,4005.223.57
88,4416,8062.411.69
94,2783,2331.220.80
10 and over4,1862,8141.200.70
    Totals349,905403,334100.00100.00
Average occupants per dwelling3.903.60  

In common with the decline in the proportion of larger-sized dwellings, the number of cases in which total occupants per dwelling was of the order of 6 or more persons tended to decrease in favour of those with 5 or less persons.

A note of caution must be sounded here, for not only were there 44,081 European members of the Armed Forces overseas at the time of the 1945 census, but the Armed Forces in New Zealand either in camps or stations or on demobilization leave, &c., totalled many thousands in addition. Occupancy figures must therefore be considered in the light of this circumstance.

Other factors relevant in this connection are now given brief mention. Flats, which on the average tend to have both fewer rooms and less occupants, had more than doubled in number by 1945; their higher proportion of the total must have exerted a downward influence on the figure of average occupants per dwelling. Further, with the improvements in transport—e.g., in speed, frequency, and coverage—many former seaside baches have been utilized as permanent inhabitations, while wartime and post-war restrictions on this class of building, aided by more stringent by-law requirements, have alike prevented compensatory new construction of baches. Again, the fall in the birthrate, which had been continuing for many years until recently, would result in a relative increase in the number of houses occupied by those married couples whose families had grown up and left the house.

ELECTRICITY SUPPLY TO DWELLING

Source of Supply.1945 Census.
Number of Dwellings.Percentage of Total specified.
Public supply366,34290.88
Private supply2,8130.70
Company supply4,5731.13
Nil29, 3987.29
Not specified208 
    Totals403,334100.00

The information disclosed by the 1945 census shows that 92.71 per cent. of the dwellings in New Zealand were served with electricity, public supply being an overwhelming proportion of the total. Of the 29,398 dwellings recorded as having no electric supply available or connected, the great bulk (86.7 per cent.) were located in rural areas.

MATERIALS OF OUTER WALLS

Material of Outer Walls.Census.
1936.1945.
Wood302,204326,853
Stone1,0261,069
Concrete (including concrete blocks)6,94810,050
Brick13,30325,841
Brick and wood2,7272,965
Wood and iron7,3724,632
Iron5,0044,658
Asbestos1,186992
Proprietary wallboards1,4577,830
Rough east on wood or lath and plaster1,3681,838
Rough east, n.o.d.1,7495,858
Other materials4,5675,739
Not specified9945,009
    Totals349,905403,334

Over 80 per cent. of dwellings in New Zealand are of wooden construction, but concrete, brick, proprietary wallboards, and rough cast all showed substantial increases in numbers since 1936.

DWELLING AMENITIES

Means of Cooking.Numbers. (1945 Census).Per Cent.
Electric range, stove120,27829.95
Electric cooker, stovette, rangette, plate, ring, &c.9420.23
Gas range, stove95,62623.81
Gas cooker, stovette, ring, &c.8310.21
Coal, wood, coke, range151,28037.66
Oil range, stove3900.10
Oil, other, including primus stove1610.04
Electric range and gas range1,7110.43
Electric range and coal, wood, coke, range10,2112.54
Gas range and coal, wood, coke, range17,7304.41
Other, including open fire, camp even, &c.2,5080.62
Not specified1,666 
Totals403,334100.00

The 1945 Census was the first occasion in New Zealand in which a question on means of cooking was asked. The coal, wood, or coke range holds pride of place where only one means is used. Including cases where alternatives of electric range or gas range are also present it will be seen that 44.6 per cent. of the dwellings in the country are equipped with coal, wood, or coke ranges.

Of the 403,334 dwellings enumerated, 317,736 had water laid on to the dwelling. 84,685 were without this service, and in the remaining 913 instances no information was supplied. For the purpose of this inquiry rain-water tanks were not counted as “water laid on.”

The census questionnaire also included a query as to whether the dwelling had hot-water service, bath or shower, and flush toilet. The results of this inquiry showed that 302,898 dwellings were equipped with hot-water service, 369,083 dwellings had either bath or shower, or both, and 280,721 dwellings possessed flush toilets.

At the census of 1945, a question on the dwelling schedule dealt with the distance that the particular dwelling was from: (a) the nearest neighbourhood shopping facilities. (b) the nearest public transport service, and (c) the nearest public primary school.

The following table gives a summary of the information obtained in this way.

DWELLINGS—DISTANCES FROM NEAREST NEIGHBOURHOOD AMENITIES

Distance (Miles).From the Nearest Neighbourhood Shopping Facilities.From the Nearest Public Transport Service.From the Nearest Public Primary School.
Under 1/4118,155204,19454,238
1/4 and under½99,29680,54395,441
1/2 and under ¾55,82337,38697,348
¾ and under 18,7915,62720,141
1 and under 1½32,94022,10055,480
1½ and under 210,0556,73615,491
2 and under 318,12412,69824,575
3 and under 413,8398,71115,733
4 and under 59,5255,5847,877
5 and under 1023,51713,30512,868
10 and over12,9785,5383,515
Not specified291912627
    Totals403,334403,334403,334

Maori Dwellings—The total number of dwellings occupied by Maoris at the 1945 census was 16,028, compared with 13,793 in 1936, an increase of 2,235, or 16.2 per cent. During the same period the Maori population increased by 16,418, equal to 19.9 per cent., but if Maori members of the Armed Forces overseas are included the increase would be 17,718 or 21.5 per cent. The following summary shows the various types of dwellings enumerated.

NATURE OF DWELLING

Nature of Dwelling.1945 Census.
Numbers.Per Cent.
Ordinary private house (three or more rooms)11,12569.44
House or whare (one or two rooms)2,96118.48
Kauta (one or two rooms)2341.46
Flat1671.04
Bach (not part of a camp), hut1,0266.41
Other private dwellings of a permanent character700.44
Temporary dwellings and tents2481.55
Non-private dwellings1891.18
Not specified8 
    Totals16,028100.00

In the tables which follow, temporary dwellings and tents have been omitted.

TENURE OF DWELLING

Tenure.1936 Census.1945 Census.
Numbers.Per Cent.Numbers.Per Cent.
Owned8,46470.518,59254.84
Rented2,25018.744,93031.47
Rent-free1,29010.752,14413.69
Not specified261 114 
    Totals12,265100.0015,780100.00

SIZE OF DWELLING

Number of Rooms.1936.1945.
Numbers.Per Cent.Numbers.Per Cent.
12,43719.971,87811.94
22,39619.632,47115.71
31,95216.002,91518.53
42,77922.774,25827.06
51,34811.052,41115.32
67746.341,1267.16
72832.323932.50
81301.071621.03
9 and over1040.851180.75
Not specified62 48 
    Totals12,265100.0015,780100.00

OCCUPANTS OF DWELLINGS

Number of Occupants.1936.1945.
Numbers.Per Cent.Numbers.Per Cent.
16855.581,2187.72
21,0158.281,3358.46
31,43511.701,79411.37
41,59513.001,99012.61
51,62013.212,01312.76
61,39111.341,68010.65
71,29510.561,5309.69
89988.141,2497.91
97466.089926.29
10 and over1,48512.111,97912.54
    Totals12,265100.0015,780100.00

The Maori schedule also included a question on dwelling amenities, and the results of this inquiry are given below.

DWELLING AMENITIES

Number at 1945 Census.
Dwellings with— 
Electric light5,584
Water laid on5,273
Rain-water tanks8,231
Hot-water service3,133
Bathroom5,644
Flush toilets2,122

Many of the Maori dwellings are without household amenities customary in European dwellings; however, the Maori dwells mainly in rural areas, where some of the amenities are not readily available.

STATE HOUSE-CONSTRUCTION.—A programme of direct home-building by the Government was commenced in March, 1937. The purpose of this branch of the Government's activities is to provide homes of a modern standard of comfort to be let at reasonable rentals to people in the medium and lower income groups. The legislative provision for this programme is contained in the Housing Act, 1919, the administration of which was transferred to the State Advances Corporation by the State Advances Corporation Act, 1936. To give effect to the Government's policy, a special Housing Construction Branch of the State Advances Corporation was set up in September, 1936. Early, in 1944 the control of the Housing Construction Branch was transferred to the Ministry of Works.

The State Advances Corporation Act, 1936, made provision for a special Housing Account with the Reserve Bank, and the Statutes Amendment Act, 1936, provided the necessary authority to acquire land under the Public Works Act, 1928, for the purpose of housing. The actual construction work is mainly carried out by contractors, tenders being called for the various contracts. The Housing Division has also built a number of houses by trainees under the scheme for the rehabilitation of returned servicemen. Up to 31st March, 1950, contracts had been arranged with the Rehabilitation Department for the labour involved in 4,182 houses situated in 41 towns. While most of these houses are situated in the larger towns, in a few instances the rehabilitation trainees have been employed in isolated districts where the Housing Division has been unable to engage private contractors. Although the Housing Division has concentrated mainly upon the building of houses to the exclusion of other buildings, there are instance;;, by reason of the creation of new communities isolated from normal amenities, where it has been necessary to provide some shopping facilities and blocks of shops have been completed in the main State housing areas.

On completion, houses and shops are handed over to the State Advances Corporation for administration.

In addition to the general scheme, the organization of the Housing Division is utilized for the purpose of erecting houses for other Government Departments, and building operations have been effected for 22 Departments of State. Units completed under this arrangement totalled 2,464 up to 31st March, 1950, with a further 433 in the constructional stage. Two subsidiary schemes within this general framework are of interest. The first covers the erection of houses and other farm buildings for returned servicemen. The schemes are recommended by the Farm Sub-committee of the Rehabilitation Department and approved by the Land Settlement Board. The land is purchased, subdivided, developed, and the houses and other buildings taken over by the Lands and Survey Department. Each farm is valued on the basis of production, and the tenants, who are chosen by ballot, have the option of purchase or lease. At the 31st March, 1950, 610 houses and 1,259 ancillary farm buildings had been completed, while under-construction figures were 109 and 157 respectively. The second scheme was inaugurated in 1946 to attract bush workers and improve the conditions of these men. Sawmillers who were eligible could apply up to 1st September, 1949, to the Timber Production Advisory Committee, which makes its recommendations, based on quantity of timber to be milled, to the State Advances Corporation. The Housing Division constructs portable pre-fabricated houses to meet the special conditions found in the timber-milling industry-There is a twenty-years hire-purchase agreement between the State Advances Corporation and the millers, who pay 15s. a week for two-bedroom houses and 17s. 6d. for three-bedroom houses. The balance of the cost is collected by a levy of 6d. per 100 ft. of timber sold. By the 31st March, 1950, 458 of these units had been completed and erected and 52 more were in course of erection.

The following table shows the cumulative progress up to 31st March of each year since the inception of the present housing scheme.

Cumulative Totals to 31st March,Houses sited.Contracts let.Houses completed and handed over to—House-unit Sections acquired.
State Advances Corporation.Other Government Departments.
 Units.Units.Units.Units.Units.
194011,07110,3536,4322720,421
194114,08413,64710,3378823,953
194217,02916,52213,52510828,990
194317,44316,79914,61927336,613
194420,91019,48715,47529740,184
194524,58122,34917,39234942,061
194627,84525,33120,24847845,838
194730,87428,42422,59073148,751
194834,91832,12825,4651,06650,510
194939,10236,35528,8791,84551,426
195042,85540,58632,2672,46454,470

The total labour force employed directly by the Housing Division and contractors at 31st March, 1950, was 6,552 as compared with 6,554 in 1949 and 3,645 in 1945.

The next table gives particulars of the cumulative expenditure of the Housing Division up to 31st March of each year since its inception.

Cumulative Totals to 31st March.Land and Services.Dwelling Construction.Plant and Equipment.Interest during Construction.Administration.Total.
Housing Branch.Other Departments.
 £££££££
19401,638,9008,567,20026,70065,50031,000281,30010,610,600
19412,549,10013,075,300128,40066,60052,200406,40016,278,000
19423,086,40016,376,500191,40065,00093,500539,80020,352,600
19433,665,50017,316,200325,20068,300117,600685,70022,178,500
19444,212,30018,326,200523,70069,800154,000659,10023,945,100
19454,934,00021,690,600678,60076,300226,200785,00028,390,700
19465,621,00025,840,8001,203,50088,500276,400985,80034,016,000
19476,518,50030,050,5001,864,000105,800353,1001,228,50040,120,400
19487,347,10034,629,3002,632,600148,100402,3001,600,00046,759,400
19498,522,40040,515,8004,000,500168,700472,2001,966,10055,645,700
19509,881,80047,686,9005,643,600190,200582,2002,369,60066,354,300

In addition to the cumulative net expenditure of £66,354,300 to 31st March, 1950, liabilities and commitments at that date amounted to a further £11,756,200.

The total cost of administration (exclusive of interest charges) from the inception of the scheme to 31st March, 1950, was £2,369,600, or 3.74 per cent. of the net expenditure (excluding administrative costs and interest). The percentage for the year ended 31st March, 1949, was 3.96.

In general, the size of dwelling units built by the Housing Division is determined by the size of the families seeking accommodation. The tendency in later years has been to build a higher proportion of larger-sized houses than formerly. This is illustrated in the following table, which contains an analysis according to the number of bedrooms contained in units built during 1948–49 and 1919–50, together with the total to the end of March, 1950.

Units Completed.
1948–49.1949–50.Total to Date.
Number of Units.Percentage of Total.Number of Units.Percentage of Total.Number of Units.Percentage of Total.
Bed-sitting room    2318.0
One bedroom241.01173.02,594 
Two bedrooms1,46235.01,77244.014,76242.0
Three bedrooms2,35756.01,92848.015,07744.0
Four bedrooms and over3508.01905.02,0676.0
    Totals4,193100.04,007100.034,731100.0

In addition to the activities briefly outlined above, the housing policy of the Government includes the provision of loans to local authorities at 3 per cent. per annum for the furtherance of municipal and other housing schemes. There is provision under the Housing Act for the grunting of loans to employers, and this has provided an avenue of assistance for such branches of industry as dairy companies and lime-works. The Rural Housing Act, 1939, and subsequent amendments thereto provide facilities for the granting of financial assistance to farmers requiring new houses for themselves or their employees, or desiring to improve their existing houses. The County Councils have been charged with the duty of investigating the loan applications, and provided they are satisfied with the security, &c., they have authority to approve a loan subject to the prior consent of the Board of Management of the State Advances Corporation. Loans are made to local authorities bearing interest at 3 per cent. and are repayable on the amortization system over terms up to thirty-five years. This enables a rate of 3½ per cent. to be charged to farmer applicants, and such loans are usually repayable over a term similar to that on which the local authority has borrowed. The amount that may be advanced for the erection of a house under this scheme has recently been raised from £1,500 to £2,000, and the suspensory loan benefits described on page 514 are available to applicants who comply with the conditions laid down. The response to the benefits offered by this legislation has so far been poor. Of the 125 County Councils in New Zealand, only 44 have applied for loans, and of authorized loans totalling £795,550 at 31st March, 1950, only £260,256 (in respect of 360 houses) had been uplifted.

Where any farm is situated within any borough, town district, or road district, similar powers are conferred on the local authority concerned.

Separate provision for housing of Maoris is made under the Maori Housing Act, 1935, reference to which will be found in Section 17C (Maori Lands).

Reference to the provisions made for the governmental financing of home-building on behalf of private owners is contained in the section of this Year-Book dealing with State Advances (Section 25D).

BUILDING PERMITS: Annual Statistics.—Statistics of building permits issued in cities, boroughs, and town districts during each March year have been collected for 1921–22 and subsequent years—for use, inter alia, as an aid in compiling inter-censal estimates of population. These statistics afford a conspectus of changes in building activity from year to year. There is, however, a factor which may affect to some extent the accuracy of the figures as a guide to short-period fluctuations in building activity. This applies more particularly to buildings other than dwellinghouses, and is found in the fact that the value shown represents, in the great majority of instances, the total contract price or estimated cost of the whole building. A permit for a large building involves building activity spread over months, or even years, whereas in the permit statistics the value is shown wholly for the year or month in which the permit is issued. This qualification applies with greater force to the monthly statistics than to the annual statistics.

The scope of the collection was widened by the inclusion in 1926–27 of three road districts—increased to six in 1927–28—in Eden County (suburban to Auckland), and was further extended in 1928–29 by the addition of two counties—increased to four in 1929–30—adjacent to Wellington and Christchurch. Of the six road districts in Eden County, two were amalgamated with Auckland City from 1st April, 1928, and two became boroughs, one from 1st April, 1930, and the other from 29th September, 1947.

As a result of the extended scope of the returns, the comparison has been somewhat impaired, and the next table shows the figures under two heads—viz., one giving the totals for all districts covered in the particular year and the second giving the totals for only cities, boroughs, and town districts.

Commencing with the year 1937–38, returns have been obtained, where possible, and data compiled in respect of building activity in rural areas (see later in this section).

The following table contains the principal statistics in regard to building permits (including State building operations) issued in urban districts since the inauguration of the collection in 1921–22.

Year Ended 31st March,All Urban Districts covered.Cities, Boroughs, and Town Districts.
Number of New Private Dwellings.Value of New Buildings: All Classes.Total Value All Buildings (including Alterations and Additions).Number of New Private Dwellings.Value of New Buildings: All Classes.Total Value All Buildings (including Alterations and Additions).
  ££ ££
19224,3304,602,8345,283,0124,3304,602,8345,283,012
19235,0256,124,4397,101,6815,0256,124,4397,101,681
19246,2457,708,9339,146,4796,2457,708,9339,146,479
19255,8057,823,3319,304,1605,8057,823,3319,304,160
19266,8508,613,54910,169,5306,8508,613,54910,169,530
19277,1799,357,97711,019,3896,7528,944,33410,575,535
19285,6908,127,7329,665,2165,3887,843,7739,353,055
19295,2127,326,4649,054,4214,8716,988,4088,691,962
19305,7477,917,3499,959,8775,2287,362,9989,336,301
19313,4634,240,2385,473,3953,2004,056,2745,260,620
19321,5551,936,4472,728,4861,4151,847,5082,620,651
19331,4961,874,7952,474,8661,3061,773,3132,341,690
19342,6493,141,8973,889,8902,4162,987,7733,718,717
19352,8922,742,4953,643,6882,6552,612,6843,492,062
19364,1404,695,7365,929,8033,8354,468,1265,674,198
19374,5554,927,3266,581,2334,2074,675,3636,273,444
19386,0438,217,40010,291,6135,5687,876,3529,909,225
19398,09310,196,47612,126,4587,4259,555,74711,431,491
19408,0869,790,11811,418,4347,4299,156,67010,714,396
19417,1479,147,88511,060,1016,0998,024,5959,763,200
19425,5036,958,9978,984,1774,9896,436,1138,185,669
19438631,363,0912,661,9477671,269,3302,500,240
19443,6045,528,5838,309,8613,2204,975,3257,587,983
19456,69810,405,11512,756,9996,1709,583,53911,800,649
19467,73614,314,68616,944,3957,02713,230,58115,736,941
19479,51617,626,54321,159,5048,35615,450,53418,773,002
19489,85418,280,33421,426,6258,89016,618,95719,559,814
194911,10221,971,60226,430,4539,58518,835,61423,045,773
195011,53024,219,48730,365,5289,61320,720,77226,513,536

The figures shown for “cities, boroughs, and town districts” cover the districts existing in the year to which the statistics refer. Since these statistics were inaugurated, however, several new boroughs and town districts have been created and are accordingly included, while a few town districts have been excluded consequent on their abolition as town districts and their merger into counties. The net result has, however, been a gradual accession which has tended to raise slightly the figures for later years.

The accompanying diagram, which relates to dwelling permits for all urban districts covered, shows the low level to which building operations fell during the depression period. The subsequent gradual recovery, accelerated by the Government's programme of house-building which commenced in 1936–37, the effect of war conditions, and the post-war impetus to building, are all clearly illustrated.

Prior to 1936–37 each block of flats was included as a single dwelling, but since then more information became available and each individual flat is now counted as a separate dwelling. Blocks of flats so included in all districts prior to 1936–37 numbered 34 in 1928–29; 36 in 1929–30; 9 in 1930–31; 4 in 1931–32; 4 in 1932–33; 6 in 1933–34; 34 in 1934–35; and 22 in 1935–36.

The following are the details of blocks of flats included from 1936–37 onwards.

Year Ended 31st March,All Urban Districts covered.Cities, Boroughs, and Town Districts.
Blocks.Number of Flats.Blocks.Number of Flats.
19379842196417
1938128519118490
19399237481341
19408132778319
1941110431105414
1942137611133595
1943211111671
19444116139149
19458839885390
19468236879353
19478124080238
19487526574263
19497025767236
19506318262174

These figures cover only buildings erected as blocks of flats. Where conversion of existing private dwellings into flats has taken place, the value is included in alterations and additions.

The statistics quoted in the preceding paragraphs relate only to the main typos of building activity. More detailed statistics are included in the annual Statistical Report on Population and Buildings, where, inter alia, permit statistics for individual towns, counties, &c., are given.

Building operations in the year 1948–49 showed a substantial increase over 1947–48. This upward trend was continued in the year 1949–50, and the value of building operations in that year constituted a record for the twenty-nine years during which building statistics have been collected.

BUILDING PERMITS ISSUED.—URBAN DISTRICTS

1947–48.1948–49.1949–50.
Private dwellings—   
  New buildings—   
    Number9,85411,10211,530
    Value£15,906,061£19,047,899£20,822,500
  Value of alterations and additions£1,613,063£1,937,576£2,436,717
Other buildings—   
  New buildings—   
    Number6417361,099
    Value£2,374,273£2,923,703£3,396,987
  Value of alterations and additions£1,533,228£2,521,275£3,709,324
Total—   
  New buildings—   
    Number10,49511,83812,269
    Value£18,280,334£21,971,602£24,219,487
  Value of alterations and additions£3,146,291£4,458,851£6,146,041
Grand total: Value£21,426,625£26,430,453£30,365,528

The following table arranges districts with building values of over £200,000 in 1948–49 and 1949–50 in descending order.

1948–49
 £
Auckland City1,704,524
Lower Hutt City1,481,764
Christchurch City1,407,505
Mount Wellington Road District1,314,843
Wellington City1,154,625
Dunedin City1,079,271
Mount Roskill Borough991,082
Waimairi County919,754
Palmerston North City754,621
Wanganui City617,880
Hamilton City605,103
Hutt County534,597
Invercargill City522,776
New Plymouth City482,039
Hastings Borough412,497
Takapuna Borough388,426
Makara County365,360
Timaru City354,912
Whangarei Borough343,965
Nelson City340,515
Napier City333,115
Otahuhu Borough305,755
Gore Borough298,238
Rotorua Borough279,087
Gisborne Borough273,639
Upper Hutt Borough269,274
Levin Borough260,143
Papatoetoe Borough242,898
Oamaru Borough239,115
Heathcote County238,589
Mount Albert Borough228,721
One Tree Hill Borough218,377
Onehunga Borough216,801
Masterton Borough206,884
1949–50
 £
Auckland City2,375,640
Christchurch City1,440,877
Dunedin City1,271,951
Waimairi County1,260,213
Wellington City1,256,630
Lower Hutt City1,235,896
Mount Roskill Borough977,082
Hutt County932,464
Hamilton City828,877
Mount Wellington Road District774,255
Palmerston North City765,928
Makara County590,604
New Plymouth City573,546
Wanganui City507,493
Timaru City482,713
Takapuna Borough480,610
Invercargill City479,347
Hastings Borough447,344
Nelson City418,534
Gisborne Borough402,995
One Tree Hill Borough395,068
Masterton Borough387,460
Napier City384,003
Upper Hutt Borough374,855
Whangarei Borough335,292
Rotorua Borough319,454
Onehunga Borough304,162
Otahuhu Borough300,424
Tauranga Borough290,434
Levin Borough282,757
Mount Albert Borough278,186
Heathcote County264,186
Papatoetoe Borough241,797
Feilding Borough229,355
Ashburton Borough216,213
Blenheim Borough215,333
Gore Borough212,986

Building Permits in Rural Districts.—In view of the importance of the housing question, a collection of data from counties was inaugurated in the year ended 31st March, 1938. For some years building statistics had been obtained from the counties of Hutt, Makara, Waimairi, and Heathcote, and the two road districts (Mount Wellington and Panmure Township) of Eden County. The great majority of the population in these counties and road districts is urban, and they were included in order to obtain more complete statistics of building activity for the urban areas of Auckland, Wellington, and Christchurch.

The collection for rural districts was therefore confined to the remaining counties, with the exception of three (Taupo, Sounds, and Fiord) in which the Counties Act is not in operation. Road Boards are functioning within Sounds County and on Waiheke Island, and these are included in the collection. Most rural districts were able to supply the information required, which, in their ease, was limited to the number of private dwellings and the total value of all buildings. In the few instances where counties were unable to furnish reliable building data for 1948–49 and 1949–50, the Building Controller's authorizations have been incorporated in the statistics. The use of these figures will result in a slight overstatement if any authorizations are not proceeded with, but it provides complete coverage for rural districts.

Data are available for all Government building in rural districts and have been included in the total for rural building.

Excluding the four counties and two road districts which are included in urban districts, the total of rural building amounted to £9,578,244 in 1948–19 and £12,111,887 in 1949–50. The number of new dwellings included was 5,034 and 6,127 respectively. The following table arranges counties with building values of over £200,000 in 1948–49 and 1949–50 in descending order.

1948–49
County.£
Waitemata865,972
Manukau565,123
Southland482,055
Hawke's Bay439,611
Tauranga398,650
Waimea367,664
Rotorua273,642
Waipa254,690
Waikato249,384
Paparua226,832
Matamata205,488
Marlborough205,006
1919–50
County.£
Waitemata1,187,845
Manukau1,002,396
Southland535,824
Hawke's Bay451,181
Waimea423,444
Rotorua411,212
Tauranga379,546
Taupo284,963
Tuapeka266,891
Matamata266,159
Paparua256,919
Whakatane254,472
Whangarei228,701
Waipa208,831

The total value of building for the four counties and two road districts included in the total for urban districts in 1948–49 was £3,384,680, and the number of new dwellings 1,517. In 1949–50 the total value was £3,851,992 and the number of new dwellings 1,917.

Dwelling Units Completed.—Local authorities which supply building-permit figures were also requested to supply the number of new dwelling units which were completed in their districts during the years ended 31st March, 1949 and 1950. In a few districts local authorities were unable to comply with the request, and in these cases estimates have been made, so that the figures are approximate. All dwellings completed by Government are included.

The results of this collection of statistics of new dwelling units completed are:—

District.1948–49.1949–50.
Urban districts10,50010,600
Rural districts4,7005,200
    Totals15,20015,800

While absolute accuracy cannot be claimed for these statistics it is believed that they will give reasonably approximate results, and satisfactorily enable a comparison of year-to-year changes to be made.

State Building Operations.—The erection of houses by the Housing Division of the Ministry of Works was commenced in March, 1937, with 22 units in Wellington City. Details of units commenced for each year are as follows.

Year.Urban Districts.Rural Districts, Total Units.Grand Total.
Single-unit Dwellings.Multiple Dwellings.*Total Units.

* Including blocks of flats.

† Not available.

1936–3722 22 22
1937–381,6381251,89051,895
1938–392,6213793,432133,445
1939–402,7685123,840303,870
1940–412,2335993,486843,570
1941–421,4214422,546592,605
1942–431574628385368
1943–441,3152381,845711,916
1944–452,0564963,194613,255
1945–461,7063492,6232522,875
1946–472,0312852,6031662,769
1947–482,1112652,6514143,065
1948–493,6274844,111
1949–504,0647524,816

Houses are also erected by the Maori Affairs Department under its various development schemes, particulars of which will be found in Section 17C.

In addition to the above schemes, dwellings are erected by or for the Ministry of Works, Railways Department, Mines Department, Education Department, &c.

In all, a total of 4,530 Government houses (3,706 in urban and 824 in rural districts) were commenced in 1948–49 and 5,395 (4,163 in urban and 1,232 in rural districts) in 1949–50.

The following table shows urban districts in which thirty or more houses were commenced during 1948–49 and 1949–50 by the various Government Departments concerned.

New Dwellings.
1948–49.1949–50.
Cities and boroughs—  
  Whangarei4647
  Takapuna5568
  Auckland City90122
  Mount Albert4653
  One Tree Hill34 
  Mount Roskill343301
  Onehunga 49
  Otahuhu31 
  Papatoetoe 32
  Huntly3147
  Hamilton City131143
  Taumarunui 30
  Tauranga3946
  Rotorua3851
  Gisborne3647
  Napier City5168
  Hastings4868
  New Plymouth City8392
  Wanganui City5361
  Feilding3935
  Palmerston North City154147
  Levin4336
  Lower Hutt City521395
  Masterton4038
  Nelson City 55
  Westport3352
  Riccarton4159
  Christchurch City11668
  Ashburton 33
  Timaru City68103
  Port Chalmers65 
  Dunedin City126115
  Mosgiel 73
  Invercargill City5831
  Other696679
    Totals3,1553,244
Independent town districts—  
  Johnsonville 34
  Other6136
    Totals6170
Dependent town districts165
Road districts and counties—  
  Mount Wellington Road District295292
  Hutt County 108
  Makara County 156
  Waimairi County138284
  Other414
    Totals474844
Totals, urban districts3,7064,163

Rural districts in which the number was thirty or more were, in 1948–49, Waitomo County (34), Rotorua County (83), Taupo County (105), Whakatane County (54), and Southland County (40), and in 1949–50, Waipa County (32), Rotorua County (86), Taupo County (43), Whakatane County (55), Hawke's Bay County (53), and Tuapeka County (118).

In addition to the 4,530 houses (value, £7,819,487) commenced in 1948–49, 91 new business premises, &c. (value, £939,622) were commenced. Alterations and additions amounted to £718,280. The total value of all State building operations covered in those statistics in 1948–49 was therefore, £9,477,389. In 1949–50, in addition to the 5,395 houses (value, £9,414,372), 101 new business premises, &c. (value, £1,016,763) were commenced. Alterations and additions amounted to £699,451 and the total value of all State building operations was £11,130,586.

Monthly Permit Statistics.—While the annual statistics of building; permits issued afford an indication of year-to-year changes in the value and volume of building activity, short-period movements in building activity are of considerable interest, particularly in times of rapid economic change. With the purpose of providing information as to current changes in building activity, the Census and Statistics Department initiated in 1926 the collection of monthly statistics of building permits issued in the larger centres. These returns cover fifty-live per cent. of the total population but represent a considerably higher proportion of the total New Zealand building.

BUILDING PERMITS IN LARGER CENTRES

Month.New Buildings.Alterations to existing Buildings.Totals.
Dwellings only.Totals.No.Value.No.Value.
No.Value.No.Value.
1948 £ £ £ £
April6471,143,2686751,325,1911,132223,3411,8071,548,532
May6401,115,6526631,379,1911,223267,7961,8861,646,982
June5951,044,1776111,072,1411,209234,5501,8201,306,691
July6101,059,8306381,152,4971,168263,2821,8061,415,779
August6031,060,6486341,494,0481,176249,2721,8101,743,320
September6711,188,1357101,257,0501,128263,1411,8381,520,491
October6251,106,4576551,332,2501,117251,6811,7721,583,931
November8101,470,0938571,678,6391,500291,8222,3571,970,461
December6601,146,0357001,312,5961,880276,9692,5801,589,565
1949        
January5601,012,4295951,113,4411,260238,4901,8551,351,931
February7221,276,9597721,379,3721,400290,3642,1721,669,736
March6821,204,5417171,534,2991,856835,7452,5732,370,044
April547999,2795861,342,7691,444258,4352,0301,601,204
May7151,299,8417701,435,1061,858368,4282,6281,803,534
June6361,184,3976891,296,7031,648347,9882,3371,644,691
July7271,344,5627881,488,1191,724370,523 1,858,642
August7661,434,9848141,546,9871,792434,1722,6061,981,159
September7571,385,2388271,631,3111,627406,3542,4542,037,665
October7061,266,8637701,539,5981,545400,1762,3151,939,774
November5891,100,4046581,231,8221,873423,6192,5311,655,441
December511951,3905621,059,3981,563398,2412,1251,457,639
1950        
January455856,410490939,824968370,4951,458 
1,310,319        
February5721,077,2096141,183,9261,194489,9481,8081,673,874
March7801,468,6778462,037,0361,711685,0332,5572,722,069
April5951,202,9936391,290,5161,275308,1711,9141,598,687
May7401,447,7308021,641,6441,832493,1952,634 
2,134,839        
June6501,321,7987011,490,9291,504432,1132,2051,923,042
July7031,436,0127681,802,3421,517769,7592,2852,572,101
August8001,651,4728651,851,7271,708609,5662,5732,461,293
September6651,388,2857541,844,0491,544522,6802,2982,366,729

BUILDING PRODUCTION.—The results of a collection of building statistics token in 1948 are given in the material now presented, which shows, largely in tabular form, the operations of persons and establishments regularly engaged in the building trade. A statement summarizing the activities of owner-builders is given separately, details for this class of building construction being excluded from the tables relating to regular builders.

The scope of the collection represented a reasonably complete coverage of the industry, permits issued by local authorities forming the principal means through which the majority of builders engaged were traced and the required information obtained.

The statistics given in the tables, which refer generally to the year ended 31st March, 1948, do not include the construction of railways, roads, streets, bridges, wharves, buildings &c., by the General Government or by local authorities, except where, in the case of bridges, wharves, buildings, and other similar types of construction, the work was carried out by contract.

All Government building operations carried out, by private individuals (State houses, schools, transit camps, hostels, &c.) are included with the exception of Maori housing and the activities of rehabilitation trainees. In regard to the latter, the total number of houses or units completed during the year 1947–48, was—Maori housing, 196; houses completed by rehabilitation trainees, 688.

Building Activity by Regular Builders.—The following table gives a summary of the principal statistics relating to the operations of regular builders during the year 1947–48, together with the comparable figures for the pre-war year, 1938–39.

Item.Unit.1938–39.1947–48.Percentage Increase.
EstablishmentsNo.1,5792,34448.4
Persons engagedNo.14,04015,1537.9
Salaries and wages paid£3,532,6875,869,46866.1
Materials used and sub-contracts£8,952,70215,392,71571.9
Other expenses£451,1391,103,370144.6
Value of work done£13,306,07223,805,18678.9

The amounts shown in the preceding table for value of work done are subdivided according to the class of construction in the table which follows.

Class of Construction.1938–39.1947–48.
 ££
Buildings10,732,96418,844,749
Bridges, wharves, and jetties278,543348,416
Other construction work240,692655,157
Alterations, additions, repairs2,053,8733,956,864
    Totals13,306,07223,805,186

Buildings completed during the year (whether commenced during the year or in a previous year) classified into private dwellings by size, business premises, and other buildings are shown for the two years 1938–39 and 1947–48 in the following table.

Type of Building.1938–39.1947–48.
Number.Value.Number.Value.
Private dwellings— £ £
1 room464,8324615,124
2 rooms10628,839147127,945
3 rooms297184,832417413,624
4 rooms1,9271,715,6412,2973,381,407
5 rooms2,6852,786,5873,9976,828,311
6 rooms695850,1138591,773,626
7 rooms110181,023120333,750
8 rooms3372,0882587,910
9 rooms720,447413,483
10 or more rooms and multiple units2486,508341534,269
    Totals5,9305,930,9108,25313,509,449
Blocks of flats95270,440104521,940
Business premises4441,821,0633651,975,659
Other buildings1,9561,038,5211,7981,949,564
    Totals8,4259,060,93410,52017,956,612

The average value per private dwelling erected in 1938–39 was £1,000, compared with £1,637 in 1947–48, an increase of 63.7 per cent.

Building Activity by Owner-builders.—As a substantial number of persons, other than those regularly engaged in the building trade, took out building permits to a value of £500 or more during the year 1947–48 it was deemed desirable to obtain particulars of their activities in order to obtain a more complete picture of the building industry in New Zealand.

A complete measure of building activity during the year is not obtained, however, by these means, for the reasons that no information is available regarding the operations of owner-builders who were working in 1947–48 on permits taken out in the preceding year and, secondly, permits for less than £500 in 1947–48 were not taken into consideration.

The results of the survey carried out are shown in the following summary.

  1. 1,636 houses were commenced during 1947–48, of which 797 were completed before the end of the year.

  2. The 797 houses completed were valued at £1,127,949, while for the 839 houses still in course of construction at the end of the year the value of work done at that stage was £562,616.

  3. Other building work done including jobbing and repair work, alterations and additions, amounted to £740,619 in 1947–48.

The valuations shown above for owner-builders' operations include the actual expenditure of the owner plus an estimate for his own labour, if any.

The average value per house completed by this class of builder was £1,415 for a dwelling with an average of 4.6 rooms. This value was based on total expenditure plus an estimated value for the owner-builder's labour, if any. Comparable figures for an equivalent house of 4.6 rooms completed by persons or organizations engaged in the building trade, recorded an average value of £1,674.

Chapter 24. SECTION 24—ELECTRIC POWER

Table of Contents

STATE DEVELOPMENT OF WATER-POWER.—Owing to its high relief, copious and well-distributed rainfall, and numerous lakes at moderate altitudes, New Zealand is well endowed with a plentiful supply of water-power, which is accordingly the principal agency used in the generation of electrical energy, fuel plants occupying a place of minor utility for stand-by or peak-loading purposes. Although 1 he first public hydro-electric supply plant (which is still in operation) was installed at. Reefton in 1887, comparatively little development had taken place prior to 1900. By 1903, however, water-power to the extent of 9,911 horse-power had been developed. During the four following decades this figure was progressively increased to 34,956, 54,244, 328,708, and 553,763 horse-power respectively, and the total at 31st March, 1949, was 858,971. Of a total of 2,834,151,724 units generated by public utilities in 1948–49, hydro-electric installations accounted for 2,710,969,080 units, or 95.5 per cent.

The Electricity Act, 1945, established a Department of State called the State Hydro-electric Department, which is charged with the administration of enactments relating to water-power and electrical energy. Prior to the passing of this Act, the controlling authority was the Public Works Department.

Part XIII of the Public Works Act, 1928 (now administered by the State Hydroelectric Department) vests in the Crown the sole right to use the water-power of New Zealand, subject to any existing rights, and gives the Government the right to develop such power, or to delegate the right to any local authority, or, outside a mining district, to any person or company, subject to certain conditions.

The regulations covering the delegation of this right, which were amended in June, 1934, provide that permission shall be obtained from the Minister in Charge of the State Hydro-electric Department by any person, &c., desiring to obtain a licence to generate power by this means. The regulations provide for an annual rental to be paid to the Crown by the licensee, such rental, except in special cases, to be at the rate of £1 per kVA. of maximum demand per annum, with a minimum annual payment of £10. A number of local authorities and private concerns have taken advantage of this provision of the Act.

Persistent demands that the Government it-self should develop the power resources of New Zealand culminated in the passing of the Aid to Water-power Works Act in 1910, and the Lake Coleridge scheme for the supply of electricity to Christchurch City and to the Canterbury Provincial District was selected for development. Operations were commenced on these works in 1911 and completed in 1915, the station having a capacity of 4,500 kW., which was extended to 27,000 kW. in 1926, and to 34,500 kW. in 1930. After this successful development, plans for interconnected power systems in both the North and South Islands were drawn up.

The principal power source in the North Island is the Waikato River, which in its course of 200 miles from Lake Taupo has a total fall of 1,170 ft. and a final discharge of over 10,000 cusecs. In 1919 the State acquired the Waihi Gold-mining Company's 6,300 kW. station at Horahora on this river, and the capacity was increased to 10,300 kW. in 1925. In 1925 also a commencement was made with the Arapuni development, the first unit being brought into operation in 1929 and the station linked with Horahora. An earth movement necessitated the closing-down of the station in 1930, but, after remedial measures had been taken, the station resumed operation in 1932. Eight units with a total capacity of 157,800 kW. are now in service, the final unit having been brought into operation in 1946. The construction of the Karapiro station was commenced in 1940, and the station (with three units, each of 30,000 kW.) came into operation in 1947–48, resulting in the closing-down of the Horahora station, the site of which was submerged in the new lake.

To ensure adequate water-supplies to these and future developments on the Waikato River during the periods of peak loading in the whiter months, the heavy spring and summer run-off has, since 1941, been conserved by means of control works which regulate the level of Lake Taupo and its outflow into the river.

A generating station at Mangahao was commenced in 1922, the full development of 19,200 kW. being completed in 1925.

Following the completion of the Mangahao station the development of the middle (or Tuai) station at Waikaremoana was commerced in 1926. This was opened in 1929 with a capacity of 32,700 kW., extended in 1939 to 52,000 kW. Work was then commenced on the lower (40,000 kW.) station at Piripaua which was completed by March, 1944. Work on the upper development at Kaitawa followed and the station (32,000 kW.) was completed towards the end of 1948. The natural outlet of Lake Waikaremoana is by seepage through the upper levels of the natural dam impounding the water, and, in order to utilize to the best advantage the water storage available, an intake tunnel has been constructed and steps are being taken to seal the seepage outlets.

These North Island stations—viz., Arapuni, Karapiro, Mangahao, and Waikaremoana—have been linked up and are operated as one system while connections also exist with all the larger generating stations (hydro or thermo) operated by supply authorities. Steam and diesel standby plants are also maintained by the Government at Auckland and Penrose.

In the South Island, after the completion of the Lake Coleridge scheme, the Waitaki River was selected as the next source of power. This station was opened in 1935, and now comprises five units each of 15,000 kW. rating. Measures are being taken to control the outflow of Lakes Pukaki and Tekapo to ensure an adequate supply of water to the Waitaki station during the winter months, and a single unit of 25,200 kW. is being incorporated in the control works of the latter lake. Another single unit of 25,200 kW. has been installed at Highbank to make use of the surplus water available in the winter months in the Rangitata irrigation race. This station was opened in June, 1945.

In 1936 the Government took over the Southland Electric-power Board's system including the generating station at Lake Monowai, and in 1938 acquired the Grey Electric-power Board's generating plant at Kaimata, on the Arnold River. During 1939 a grid system similar to that in the North Island was established by linking these two stations with the Coleridge and Waitaki stations, already interconnected.

The Dunedin City Council's hydro-station at Waipori is also linked with the system, as are some local-authority steam stations and the small Government-owned diesel plant at Dobson.

Construction of a generating station on the Cobb River with a capacity of 12,000 kW. was originally undertaken by a private enterprise, but the undertaking was acquired by the Government and has now been completed. This station commenced supplying power to the Nelson district in June, 1944, and to Marlborough in January, 1945. The station, which is being expanded in capacity to 32,000 kW., will also ultimately be linked with the main South Island grid. It is already connected with several municipal and State stand-by plants in the northern portion of the Island.

The advances in installed capacity indicated above were no more than able to meet the increasing demands for power. Up to 1941, and from then on, through delays resulting from the war in the delivery of plant on order overseas, the demand, first in the North Island and eventually in the South Island, began to outstrip the capacity of the systems. This necessitated the encouragement of economies, and eventually the enforcement of restrictions on the use of electric power.

The position was further aggravated by a succession of dry summers, commencing with 1943–44, causing poor hydraulic conditions, particularly at Lakes Taupo and Waikaremoana, where the lakes remained at very low levels for considerable periods.

In this connection a table of index numbers is supplied showing how the average daily consumption of electrical energy has increased during the last twenty years. This table is based on units retailed or supplied free of charge by all supply authorities, separate series of numbers being given for the North and South Islands from 1936 onwards. For each series the base is the daily average over the year ended 31st March, 1939 (= 100).

Year Ended 31st March,North Island.South Island.New Zealand.
1930  45
1931  53
1932  55
1933  57
1934  60
1935  64
1936697370
1937768077
1938879088
1939100100100
1940115114115
1941131128130
1912140137139
1943148145147
1944154157155
1945159169162
1946165181169
1947173200181
1948177203185
1949198225207

Over the years 1926 to 1931 the annual growth for New Zealand averaged 22 per cent. per annum, from 1931 to 1936, 5.5 per cent., from 1936 to 1941, 13.2 per cent., and from 1941 to 1948, during which restrictions and the encouragement of economies took place, only 5.2 per cent. During 1948–49, however, there was a big increase in available supply with the bringing of the Karapiro station into full-scale operation, as well as the completion of additional units at Waitaki and Waikaremoana. Restrictions were still necessary, however, to ensure adequate supply to meet the ever-increasing demand during the period preceding the bringing into operation of the next large station.

In order to meet future requirements in the North Island a comprehensive scheme was announced in October, 1943, envisaging the ultimate development of ten large stations, including Arapuni, to utilize practically the whole of the fall in the Waikato River from Lake Taupo to Cambridge. The grand total of the power available from such a chain of stations would approximate 800,000 kW. The scheme called for the development of four new stations within the next seven or eight years. The first of these, that at Karapiro, with a capacity of 90,000 kW., was completed in 1948. Steady progress is being maintained with the construction of the next and largest station at Maraetai, which will have a capacity of 180,000 kW. The anticipated date of first operation of this station is April, 1952. The next station to follow is at Whakamaru, where the diversion channel is now being excavated, and preliminary work is proceeding at the sites of two other proposed stations.

An investigation on sources of geo-thermal steam is being carried out at Wairakei.

Considerable extensions to the South Island chain of stations are either in the planning stage or under way. The principal project in this scheme is a station with an ultimate capacity of 320,000 kW. situated above Roxburgh on the Clutha River. The excavation of the river-diversion channel is proceeding. This scheme will involve the building of control works at the outlets of Lakes Wakatipu, Wanaka, and Hawea. Investigational work has also been done in regard to a further station on the Waitaki River at Black Jack's Point, while similar work, together with the construction of access roads, is proceeding in connection with a proposed major scheme based on the water storage in Lakes Rotoroa and Rotoiti in the Nelson Provincial District.

The following table gives the present and ultimate installed capacity of each of the Government generating stations in operation or for which contracts for the supply of machinery have been let; the static head is also given.

Name of Station.Present Installed Capacity.Ultimate Installed Capacity.Static Head (Feet).
No. of Units.kW.kVA.No. of Units.kW.kVA.

* Work is proceeding on these stations.

Arapuni8157,800180,0008157,800180,000175
Karapiro390,000100,000390,000100,000100
Maraetai*   5180,000200,000200
Mangahao519,20024,000519,20024,000895
Waikaremoana—       
  Kaitawa (upper station)232,00038,000232,00038,000443
  Tuai (middle station)352,00062,200352,00062,200675
  Piripaua (lower station)240,00044,400240,00044,400370
Cobb River412,00015,000632,00037,2201,876
Arnold River (Kaimata)23,0603,60023,0603,60045
Lake Coleridge934,50040,640934,50040,640493
Highbank125,20028,000125,20028,000330
Waitaki575,00083,3337105,000116,66570
Lake Tekapo*   125,20028,00080–105
Lake Monowai36,0007,05036,0007,050154

The following table covers those State systems in actual operation in each of the last five years.

1944–45.1945–46.1946–47.1947–48.1948–49.

*Includes fuel generation which in 1948–49 amounted to 42,769,502 units.

 £££££
Capital outlay26,539,98829,755,48934,324,57439,462,25944,824,727
Total revenue2,697,1762,885,9733,098,7163,253,2693,648,654
Power purchased229,371280,522516,842398,446497,138
Working and management expenses808,695993,6441,002,6801,055,8071,199,869
Interest773,217848,576883,8021,072,2551,101,848
Sinking fund134,538137,042173,743225,177367,165
Depreciation406,034294,166353,748263,053306,402
Taxation443,853423,674243,854165,760176,232
Total costs2,795,7082,977,6243,174,6693,180,4983,648,654
 kWh.kWh.kWh.kWh.kWh.
Units generated*1,996,565,2772,096,439,7582,203,807,6542,349,256,6572,554,172,158

ELECTRIC-POWER BOARDS.—The policy of the Government generally is to supply power in bulk, leaving the reticulation and retail supply in the hands of the local authorities. Initially the only local authorities available for this purpose were the cities, boroughs, counties, and town districts, but to facilitate the extension of electric supply into the country areas a wider organization became necessary. This was first provided under the Electric-power Boards Act of 1918, which provided for several local districts to combine for the purpose of electric-power distribution, and to set up a special Electric power Board to carry out the work, with rating-powers over the district concerned. The legislation was consolidated and amended in the Electric-power Boards Act, 1925, amendments to which were enacted in 1927 and 1928. Forty-four Boards constituted under these enactments are in existence, and the total population included in all licensed areas—i.e., power districts, cities, boroughs, &c.—is approximately 98.6 per cent. of the total population of New Zealand. Not all of the population in the licensed areas is as yet, however, served with distribution lines; but in this connection it is of interest to note that the Electricity Act, 1945, in addition to setting up a separate Department of State—the State Hydro-electric Department—for the purpose of controlling the Government generating stations, selling power in bulk, &c., also established a Rural Electrical Reticulation Council. This Council is empowered to collect from each supply authority a levy on sales of energy, and out of the proceeds to grant subsidies to rural authorities towards capital charges on reticulation extensions in sparsely populated areas. The levy at present is at the rate of ¼ per cent. As at 31st March, 1950, the Council had approved subsidies on 1,336 miles of line, which, when completed, will give supply to 2,372 consumers. The total annual subsidy provisionally amounts to £36,490, and the capital expenditure involved is estimated at £713,095. The average capital cost of reticulating the areas included in the applications received to date is £300 per consumer as compared with an average of £60 per consumer incurred by Power Boards prior to the passing of the Act.

An Act of 1930 established an Association of Electric-power Boards and municipal electric-lighting authorities.

So far only one of the four main cities—viz., Auckland—has been included in the reticulation area of a power district, but of the secondary centres the cities of Wanganui and Lower Hutt, and the boroughs of Gisborne, Hastings, Petone, Masterton, Blenheim, Greymouth, Ashburton, and Oamaru are so included.

Forty-two Boards were engaged in the distribution of electric power during 1948–49. Of these, twenty-seven do not operate generating stations but are distributing power purchased in bulk, principally from Government stations. Eleven Boards, although operating small generating stations, are also mainly dependent on Government stations for supplies. The remaining four Boards operate their own water-power stations, but two of thorn find it necessary to make small bulk purchases. Two Boards were not actively functioning during 1948–49, while the area formerly administered by the Southland Electric-power Board now operates under Government control (since October, 1936).

The following is a summary of the financial operations of actively functioning Electric-power Boards.

Year Ended 31st March,
1945.1946.1917.1948.1949.
 £££££
Capital outlay15,833,79316,486,87017,597,26519,249,76020,806,872
Revenue—     
  Retail sales3,836,2693,946,9754,116,8794,328,9934,886,074
  Bulk sales and interchange186,437215,038256,144247,845265,079
  Profit on trading22,18827,81235,24941,30548,689
  Other50,12256,03052,24842,81156,725
      Totals4,095,0164,245,8554,460,5204,660,9545,256,567
Expenditure—     
  Operating—     
    Power purchased1,689,1071,786,9651,924,8612,027,0522,335,628
    Generating costs39,50240,21557,00846,29336,730
    Transmission and distribution465,886527,116564,254615,492683,738
    Total operating2,194,4952,354,2962,546,1232,688,8373,056,096
  Management and general321,263360,192400,387453,915491,415
  Capital charges1,102,2251,104,8721,137,6051,130,5421,236,017
  Appropriations256,344260,120323,540251,079292,125
      Totals3,874,3274,079,4804,407,6554,624,3735,075,653

Revenue in the foregoing table is exclusive of moneys derived from rates, which yielded £3,662 in 1948–49. Capital charges are inclusive of interest, sinking-fund, and depreciation payments, while operating charges include wages, stores, fuel, distribution, and street-lighting expenses.

ALL STATIONS.—In addition to the Government undertakings controlled by the State Hydro-electric Department, the Tourist Department's station at Rotorua, and those undertakings operated by Electric-power Boards, there were, during 1948–49, forty establishments operated by other organizations, three of which represented private enterprise, the rest being local authorities of various classes. A general summary covering all stations in operation for the last three years is given hereunder.

Year Ended 31st March.
1947.1948.1949.
Stations No.1009796
Persons engaged (both sexes) No.4,3994,3424,509
Salaries and wages £1,769,1121,798,8742,005,511
Consumers No.493,620511,781533,434
Number of—   
  Ranges160,808180,989200,497
  Water-heaters192,817212,749234,525
Prime movers—   
  Hydro b.h.p.688,302767,271858,971
  Thermo b.h.p.124,088121,683114,503
Totals b.h.p.812,390888,954973,474
Generators (capacity)—   
  Main D.C. kW.292191191
      A.C. kW.455,621509,088586,285
kVA.529,593588,241676,492
Standby D.C. kW.1,8421,9641,616
      A.C. kW.92,97891,72186,734
kVA.115,490113,890107,735
      Totals kW.550,733602,964674,826
Route-miles of lines Miles31,74735,52738,341
Revenue—   
  Sales of current—   
    Retail £6,816,2537,031,5057,873,703
    Bulk and interchange £3,420,5533,423,1503,929,107
  Other (including rates) £166,271172,451210,400
      Total revenue £10,403,07710,627,10612,013,210
Expenditure—   
    Power purchased (including £ interchange)3,461,7693,487,2234,019,373
    Generating costs £898,178776,223902,097
    Transmission and distribution costs £1,287,2661,361,0261,564,059
    Management and general £854,698991,5491,088,739
    Capital charges £3,004,2643,203,1973,476,755
        Total expenditure £9,506,1759,819,21811,051,023
Appropriations (including taxation) £879,221626,305757,626
Capital outlay—   
  Total expenditure to date £60,325,60467,401,02774,776,530
  Expenditure during year £6,182,1296,699,7217,541,155
Unite (kWh.)—   
  Generated (000)2,520,6262,589,6202,834,155
  Per head of mean population Units1,4221,4281,531
  Sold (retail) (000)1,997,8732,035,7112,277,947

The figures given in respect of employees refer only to those whose salaries and wages are met out of revenue from the sale of energy.

Employees and Wages.—The following summary, covering all stations, shows for the year ended 31st March, 1949, the principal details for employees, and for salaries and wages paid.

Class of Employment.Persons engaged.Salaries and Wages paid.
Males.Females.Totals.To Males.To Females.Totals.
(a) Salaries or Wages paid out of Revenue from Sale of Energy
    £££
Secretaries, managers, engineers209 209157,466 157,466
Clerical staff8234071,230354,21197,436451,647
Wage-earning employees3,038323,0701,389,1577,2411,396,398
    Totals4,0704394,5091,900,834104,6772,005,511
(b) Salaries or Wages not paid directly out of Revenue from Sale of Energy
    £££
House-wiring186 18669,349 69,349
Trading departments1261914552,3694,27256,641
New construction-works1,300111,311551,8993,015554,914
    Totals1,612301,642673,6177,287680,904
    Grand totals5,6824696,1512,574,451111,9642,686,415

Capital Outlay.—The following figures of capital expenditure during 1948–49 and of capital outlay to 31st March, 1949, include capital invested in trading departments and in other activities.

Class of Expenditure.Expenditure during Year Ended 31st March, 1949.Total Capital Outlay to 31st March, 1949.
 ££
Land in connection with power-house38,634990,997
Headworks, pipe-lines, &c.1,370,12511,411,504
Power-house buildings, cottages, &c.68,2633,208,951
Generating plantCr. 15,5205,097,527
Special standby plantCr. 11,6131,417,814
Main transmission-line and main substations2,533,62516,620,437
Distribution system, substations, land, cottages, &c.1,302,12118,072,839
Public (street) lighting11,308503,349
Office and store buildings, workshops, garages, houses, and service buildings196,5071,741,955
Loose tools, meters, instruments, furniture, trucks, motorcars, equipment, and stocks617,6333,708,072
Interest during construction238,6153,047,154
Loan conversion premiumsCr. 57762,799
Miscellaneous (work under construction, cost of raising loans, law-costs, &c., and other capital expenditure)1,192,0348,893,132
        Total capital outlay7,541,15574,776,530
Capital cash on hand and investments of capital 374,981
Capital funds used to finance advances to consumers and trading departments 178,874
        Total capital assets 75,330,385

Additions to the capital value of all electrical systems during 1948–49 totalled approximately £7,800,000, while deductions—i.e., sales and amounts written off—amounted to approximately £250,000. The previous table shows for each item the net expenditure only during the year, including amounts transferred for work completed, previously shown as work under construction, and totalling approximately £1,000,000.

Of the total capital additions of £7,800,000 during 1948–49, £5,600,000 was contributed by the Government, £1,680,000 by Electric-power Boards, £450,000 by other local authorities, and negligible amounts by companies. The chief items of Government expenditure were—£2,000,000 on the Whakamaru-Otahuhu and Whakamaru-Bunnythorpe 220 kV. transmission lines and the Otahuhu, Bunnythorpe, and Haywards substations; £500,000 on additions to the transmission, distribution, and communications systems and substations generally; £1,500,000 on the construction of the Maraetai power scheme; £350,000 on the Tekapo and Pukaki control works; £750,000 on the completion of the present stage of the Waitaki power scheme; £175,000 on the Cobb power scheme; £100,000 on the Roxburgh scheme; and £150,000 on preliminary work on the Whakamaru power station.

Local-authority expenditure during 1948–49 included £1,200,000 on distribution systems and £195,000 on transmission systems.

Capital Receipts.—The various sources for the capital expenditure shown in the previous table are summarized in the following table:—

Total loans raised—££
Loan liability at 31st March, 194955,503,471 
Reserve created by loan repayments to date13,315,424 
  68,818,895
Appropriations from revenue 6,267,375
Other capital reserves—i.e., capital profits and accretions 85,207
Temporary advances, capital creditors, &c. 158,908
Total capital receipts £75,330,385

The loan liability was increased by £10,804,859 during 1948–49, representing new loans raised during the year, together with Government expenditure, and reduced by £1,438,249, representing loan repayments during the year.

Where assets have been scrapped or written down, and the capital expenditure thereby reduced, corresponding amounts have been written off the appropriate capital reserves, i.e., reserves created by loan repayments and the capital expenditure out of revenue.

General Balance Sheet.—The following table summarizes the general assets and liabilities—i.e., capital items are excluded—as at 31st March, 1949, in addition to setting out the reserves and invested funds.

Liabilities£
Sundry creditors2,441,939
Advances from capital for trading departments, &c.179,368
Reserves—£
  Sinking fund reserve1,627,033
  Depreciation reserve3,590,159
  Renewal fund reserve1,373,080
  General reserve1,130,086
  Other reserves313,433
 8,033,791
Credit balance, net revenue accounts1,610,341
 £12,265,439
Assets£
Trading Department assets, stocks, &c.3,270,339
Cash, debtors, and other current assets3,342,200
Invested Reserve Funds—£
  Sinking funds1,566,686
  Depreciation funds1,517,157
  Renewal funds1,255,767
  Other reserve funds1,313,290
 5,652,900
 £12,265,439

Power Plant.—Particulars relating to the power plant in use during the year ended 31st March, 1949, are set out hereunder.

Source of Power.Main Plant.Standby Plant.Totals.
 No.B.H.P.No.B.H.P.No.B.H.P.
Steam-engines  1886,1821886,182
Water-turbines83845,6093213,362115858,971
Gas-engines  41,47541,475
Oil-engines76063726,2404426,846

Current.—The following table sets out the number of units generated and their disposal, the second and third columns comprising energy sold in bulk by one authority (in most cases the State Hydro-electric Department) and purchased by another (e.g., an Electric-power Board). The excess of bulk purchases over bulk sales represents the surplus generation of certain freezing-works, collieries, &c., which is bought in by supply authorites, usually through the State Hydro-electric Department. This supply, generated by other than public supply authorities, finds no place in either of the first two columns of the table.

Year Ended 31st March,Units kWh.
Generated.Sold in Bulk.Purchased in Bulk.Net Totals.Sold (Retail).Lost in Transmission, &c.*

* Includes energy supplied tree of charge amounting to 25,222 thousand kWh. in 1948–49.

Thousand
19452,273,8391,934,1041,935,1442,274,8791,803,402471,477
19462.364,9602,058,3232,060,2882,366,9251,891,227475,698
19472,520,6262,233,6852,241,2292,528,1701,997,873530,297
19482,589,6202,284,1052,293,8672,599,3822,035,711563,671
19492,834,1552,541,5582,551,8082,844,4052,277,947566,458

Analysis of Units retailed.—Following is a classification of units retailed according to the various purposes for which the energy was sold. In this table “Domestic” includes domestic water-heating units, and “Commercial” both commercial and dairy water-heating units.

Year Ended 31st March,Units sold kWh.
Domestic.Commercial.Electric Motors.Street Lighting.Tramways.Electric Railways.Other Purposes.Total.
Thousand
1945941,740325,489445,48212,18856,33014,2497,9241,803,402
19461,024,548297,849476,70613,07356,49214,5747,9851,891,227
19471,122,401315,787471,50611,93251,95316,4437,8511,997,873
19481,140,878303,609508,21711,16449,42515,9966,4222,035,711
19491,306,517340,295545,33813,14749,46716,1037,0802,277,947

The expansion in the use of electric power since 1929–30 is strikingly portrayed in the following diagram, which shows also the principal purposes for which the energy was sold.

Revenue.—Revenue is derived chiefly from the sale of energy, and in 1948–49 this source was responsible for over 97 per cent. of the total. The amount of revenue derived from rates showed a steady decrease until 1947–48, when a substantial increase was recorded. The amount, however, represented less than one-twentieth of 1 per cent. of the total. The following table sets out the revenue of all stations.

Year Ended 31st March,Sale of Energy (Retail).Profits, Sale of Apparatus.Miscellaneous.Interest.Rates.Totals.*

* Excluding revenue from interchange of power.

£££££££
19466,504,37944,309118,77022,0212,2816,691,760
19476,816,25360,80386,70716,5602,2016,982,524
19487,031,50568,30189,56511,2243,3617,203,956
19497,873,70384,035113,6069,0973,6628,084,103

Expenditure.—Of the total expenditure of £7,084,183 (excluding cost of interchange of power in bulk) recorded in the year ended 31st March, 1949, 64.4 per cent. represented overhead costs (comprising management expenses and capital charges), while operating-expenses or prime costs stood at 35.6 per cent.

Energy may be sold more than once in bulk before reaching the retailing authority, and in these tables the revenue from such interchange of power between authorities is set off against the cost, the net figure for cost of power purchased representing the cost to the industry of purchases from outside sources. In this connection mention may be made of certain contracts existing between the Government and some local authorities, whereby the latter are required to maintain their standby plants and to operate them, whenever called upon, to supplement the State hydro-electric supply. The units so generated, often by fuel plants, are purchased by the Government and resold, in most cases to the generating authority, for distribution.

The table following gives an analysis of expenditure.

Item.Year Ended 31st March,
1946.1947.1948.1949.

* Does not include the interchange of power between supply authorities.

Operating Expenditure
 ££££
*Cost of power purchased23,27941,21664,07352,533
Cost of generation201,133219,048225,853279,721
Fuel322,754500,145374,643458,775
Stores2,1551,7281,9032,276
Repairs37,37437,64929,81033,424
Standby plant173,613139,608144,014127,901
Cost of transmission248,947276,595308,106379,692
Cost of distribution892,121976,6021,026,3781,152,718
Public (street) lighting31,24034,06926,54231,649
    Totals1,932,6162,226,6602,201,3222,518,689
Miscellaneous Expenditure
 ££££
Cost of management773,822758,989881,990962,593
Insurance32,86538,75043,62446,505
Losses from trading2,7234,1315,0371,881
Other expenditure30,13452,82860,89877,760
Totals839,544854,698991,5491,088,739
Capital Charges
 ££££
Interest1,429,9841,453,5761,621,4451,653,071
Sinking fund493,816546,140578,734366,342
Renewals78,038112,834124,167127,740
Depreciation458,875564,541471,421553,399
Loan repayment267,913291,742404,852775,421
Exchange47,31135,4312,578782
    Totals2,775,9373,004,2643,203,1973,476,755
    Grand totals5,548,0976,085,6226,396,0687,084,183

The distribution of the expenditure per unit sold retail is given hereunder.

Year Ended 31st March,
1946.1947.1948.1949.
 d.d.d.d.
Operating-expenses0.2450.2670.2590.265
Miscellaneous expenses0.1060.1030.1170.115
Capital charges0.3510.3610.3780.366
Totals0.7020.7310.7540.746

Appropriation of Surplus.—The following table shows the appropriations of net surplus for years ended 31st March, 1946–49.

1946.1947.1948.1949.
 ££££
Renewal fund123,92071,29556,10963,152
Reserve fund92,60241,23141,36540,003
Taxation430,431252,639177,476186,420
Other398,583514,056351,355468,051
    Total appropriated1,045,536879,221626,305757,626

HYDRO-ELECTRIC POWER IN USE.—The following table shows the hydroelectric horse-power actually developed in the various machinery inspection districts at the 31st March in each of the last live years. The figures cover all hydro-plants exceeding one horse-power, whether main or standby, with the exception of plants not exceeding six horse-power used exclusively for farming purposes.

District.1945.1946.1947.1948.1949.
 H.P.H.P.H.P.H.P.H.P.
Auckland North4,0744,0744,0744,0744,074
Auckland
Auckland South181,950206,950236,950305,750347,750
Gisborne140,028140,040140,040140,040166,035
Hawke's Bay
Taranaki North14,46514,46514,46514,46514,465
Taranaki1,4851,5921,5921,5921,592
Wellington North32,02032,02032,02032,02032,020
Wellington3,0353,0353,0353,0353,403
Marlborough
Nelson19,37519,37519,37519,37519,375
Westland9,1009,2509,2509,2709,799
Canterbury59,60495,55495,55495,75495,754
Canterbury South
Otago121,239121,209121,209128,744152,414
Southland11,44611,44611,44611,44611,446
    Totals597,821659,010689,010765,565858,127

The following table gives an analysis of the purposes for which plants were generating power as at the 31st March, 1949.

District.Mining.Electric Supply.Flax-mills.Farming.Freezing-works.Paper-mills.Miscellaneous.Totals.
 H.P.H.P.H.P.H.P.H.P.H.P.H.P.H.P.
Auckland North 4,070 4   4,074
Auckland        
Auckland South 347,750     347,750
Gisborne 166,000 35   166,035
Hawke's Bay        
Taranaki North 14,460    514,465
Taranaki 1,537    551,592
Wellington North 32,020     32,020
Wellington 3,403     3,403
Marlborough        
Nelson 19,375     19,375
Westland3179,430    529,799
Canterbury 95,745 9   95,754
Canterbury South        
Otago 152,015 183  216152,414
Southland 9,6868 7501,000211,446
    Totals317855,49182317501,000330858,127

The figures shown in the above table do not, of course, indicate the ultimate-consumption of hydro-electric power in the industries specified, since by far the greatest-proportion of the total horse-power used in industry would be drawn from the electric-supply stations and not generated in separate plants.

Chapter 25. SECTION 25—GENERAL GOVERNMENT FINANCE

25 A—REVENUE AND EXPENDITURE

THE legislation relating to the custody, administration, and audit of the public-moneys and securities is contained in the Public Revenues Act, 1926, which consolidated and amended the then existing enactments on the subject. All public moneys, excepting those payable to or received by the Post and Telegraph Department, the Government Insurance Department, the Public Trust Office, the Maori Trust Office, the State Advances Corporation, the State Fire and Accident Insurance Office, the Government Superannuation Fund, the National Provident Fund, the Broadcasting Account, the Iron and Steel Industry Account, the Meat Industry Account, the Marketing Account, and other special accounts under the Marketing Act, are paid into one account at the bank called the “Public Account,” and are carried to one or other of the following funds or accounts in the books of the Treasury: The Consolidated Fund, the Public Works Account, and separate accounts or funds specially created, including the Social Security Fund and the War Expenses Account. The War Expenses Account was created in September, 1939, and remained in being until 31st March, 1950, when it was abolished. Another subsidiary account, the War Damage Fund, was established in 1911. This fund was replaced in January, 1945, by the Earthquake and War Damage Fund under the Earthquake and War Damage Act, 1944. The National Development Loans Account was initiated from 1st April, 1942, for the purpose of co-ordinating and simplifying the raising of loan-moneys for public works and other capital purposes. The Electric Supply Sinking Fund Account was abolished as from 31st March, 1944, while the New Zealand Loans Amendment Act, 1947, provided for the abolition of the Public Debt Repayment Account and its incorporation in the Loans Redemption Account from 1st April, 1947. The separate accounts were further reduced by the Finance Act, 1947, and Finance Act (No. 2), 1947, which abolished the Bank of New Zealand Shares Account, and the Main Highways Account respectively, both as from the 1st April, 1947. The Air Defence Fund (now the Defence Fund) was created in June, 1948, while the State Forest Account was abolished from the 1st April, 1948, by the Forest Amendment Act, 1948. The Land Act, 1948, abolished the Land for Settlements Account and established the Land Settlement Account as from 1st April, 1949. From the 1st April, 1950, the Deposits Account, which was formerly part of the Consolidated Fund, has been constituted a separate account.

The statistical material presented in the ensuing pages relates solely to those accounts or funds included within the framework of the Public Account. However, a consolidated review of Government receipts and expenditure on current account has been prepared and made available in the section on National Income and Expenditure. This review has accordingly taken into consideration the net surpluses or deficits of trading and other accounts hot within the Public Account. Present data are insufficient to show the details of the capital account for the Government sector of the economy.

The financial year commences on the 1st day of April and ends on the 31st day of March. The receipts of any financial year represent the money received into the Public Account at the bank at Wellington within the year, together with that received into the Public Account at London of which advice is received in time for inclusion in the accounts for the year. The payments represent the money paid (a) at the Treasury within the year, (b) by imprestees, of which accounts are received at the Treasury within the year, and (c) at London, of which advice is received in time for inclusion. The Public Account, formerly held at the Bank of New Zealand, was taken over by the Reserve Bank of New Zealand from 1st August, 1934.

At the end of each financial year the Appropriation Act of that year lapses, but the Minister of Finance is authorized for a period of three months from the commencement of the next financial year to pay money in respect of any service, provided that the amount does not exceed the unexpended balance voted for that purpose in the previous year, together with an amount equal to one-fourth of such vote.

The normal practice is for Parliament to meet at the end of June in each year and to vote supplies from month to month until the estimated expenditure for the year has been approved and the annual Appropriation Act is passed. Where a later session of Parliament is foreseen, a temporary amendment to the provisions set out in the preceding paragraph is made. In the event of a mid-session adjournment, supplies in anticipation of the Appropriation Act may be voted for more than one month.

AUDIT OF EXPENDITURE.—In the audit of expenditure both the pre-audit and post-audit systems are in operation. Pre-audit is applied to vouchers in respect of payments on account of salaries of new appointees; officers claiming more than one month's salary at any time; interest, loan transactions, and return of deposits; unauthorized expenditure; transfers between Government accounts; or expenditure chargeable against the accounts of local authorities. Post-audit is applied to all other payments.

Vouchers must be certified as correct by the proper officer, and forwarded by him to the head of his Department for approval. Vouchers subject to pre-audit are then forwarded to the Audit Office, and on being found correct are sent on to the Treasury to be entered on requisitions for payment. Vouchers subject to post-audit are transmitted by the head of the Department direct to the Treasury. Payment is made by the Treasury, and the claim is afterwards submitted for audit.

INCOME AND EXPENDITURE.—A system of departmental balance-sheets and statements of accounts was inaugurated on commercial lines in 1920 to show the true cost of the various Departments and services, as distinct from payments out of appropriations on the basis referred to at the beginning of this subsection. These balance-sheets and statements of accounts were published annually in parliamentary paper B–1 [Part IV], to which the reader is referred for details of income, expenditure, &c., in respect of certain Departments and services. The publication of these detailed accounts for a number of Departments has now been discontinued,

For a number of years up to and including the financial year 1937–38 statements of income and expenditure, combining the revenue accounts of most Government Departments, and a State balance-sheet, were published. For various reasons the preparation of these documents for years subsequent to 1937–38 has been suspended.

ACCOUNTS AND FUNDS WITHIN THE PUBLIC ACCOUNT.—The records of the Public Account in the books of the Treasury consist of a number of ledger accounts for the special subsidiary funds or accounts including the Consolidated Fund, the Public Works Account, the Social Security Fund, the War Expenses Account, and a number of other accounts established by statute or kept by Treasury under authority of the Public Revenues Act, “to make better provision for accounting for moneys in the Public Account.” In these accounts are recorded for each separate fund or account the receipts, payments, and cash balances so that the bank balance in the Public Account is apportioned among the funds and accounts, and balanced itemized statements of the receipts and payments for each of the funds or accounts are prepared for publication.

The use of the terms “fund” and “account” implying some significant distinction is hardly justified. The use of the term “ Social Security Fund,” for example, does not imply any technical accounting distinction between the Social Security Fund and the Public Works Account or the other accounts within the Public Account.

In addition to those mentioned above, the following accounts and funds were included in the Public Account during the financial year ended 31st March, 1950: Defence Fund, Earthquake and War Damage Fund, Electric Supply Account, Land Settlement Account, Loans Redemption Account, National Development Loans Account, Remittances to London Account, Reserve Fund Account, State Coal-mines Account, Working Railways Account.

Particulars of some of the more important accounts are contained in the following pages, while others are dealt with in the appropriate sections of this volume. Certain of the accounts represent book entries only. For instance, practically the whole of the receipts and payments of the Loans Redemption Account are nominal, consisting in the main of entries due to the renewal of loan-moneys. The Remittances to London Account merely covers the withdrawal of money in Wellington for remittance from New Zealand, and its crediting to the New Zealand Public Account, London. The Deposits Account represents only lodgments or withdrawals of (mainly) non-Government moneys.

The figures shown under the various headings of this subsection are on the basis of receipts and payments. In some sections devoted to the operations of various Departments and activities, the figures are given on an income and expenditure basis and accordingly differ to some extent from those appearing here.

THE CONSOLIDATED FUND.—The Consolidated Fund covers the ordinary revenue and expenditure of the General Government—i.e., apart from capital items, commercial and special undertakings, advances, &c. Until comparatively recent years its operations afforded an excellent comparison of State revenue and expenditure from year to year, but successive changes in system have largely destroyed the comparability of the figures.

Figures of receipts and payments of the Consolidated Fund over a long period of years will be found in the Statistical Summary near the end of this volume. For the years prior to 1937–38 they are there presented on the old or net basis—i.e., certain interest and other payments, now treated as receipts, were treated as credits in reduction of expenditure. For later years the figures are on a gross basis.

A summary of receipts and payments for the last eleven years is contained in the following table. Payments and balances for 1941–42, 1942–43, 1943–44, 1944–45, 1947–48, and 1948–49 do not include amounts of £1,726,000, £1,672,000, £4,200,000, £2,200,000, £4,611,000, and £1,786,000 respectively allocated to the War Expenses Account from surplus funds.

Year Ended 31st March,Receipts.Payments.Surplus.Balance at End of Year.
 ££££
194046,919,49146,600,152319,3392,052,526
194150,980,57749,254,1531,726,4243,779,150
194254,552,70152,880,2391,672,4623,725,912
194355,075,96050,921,3824,154,5786,208,490
194457,561,40955,328,8292,232,5804,241,070
194559,928,87258,714,1531,214,7193,255,789
194663,913,64962,659,4991,254,1504,509,940
1947108,294,473103,683,4554,611,0189,120,958
1948117,116,115115,330,4031,785,7126,295,652
1949141,523,915138,893,1542,630,7617,140,701
1950124,996,634120,688,8924,307,74211,448,443

Receipts.—Details of receipts of the Consolidated Fund are given in the next table. Taxation receipts represent only those amounts paid into the Consolidated Fund, and there are substantial amounts of special taxation which are paid to the Social Security Fund. Full details of taxation receipts are contained in Subsection 25 B.

Source.1947–48.1948–49.1949–50.
Taxation—£££
  Customs24,390,88119,111,48621,474,533
  Beer duty4,404,0514,555,3744,822,340
  Sales tax15,945,81314,105,22414,785,320
  Film-hire tax111,155108,285112,701
  Highways3,543,9543,613,7433,640,116
  Stamp and death duties9,382,5559,624,2569,567,609
  Land-tax854,456916,120967,386
  Income-tax36,632,58149,007,67248,483,450
  National Security tax772,029  
  Miscellaneous61,67819,57910
Interest on capital liability—   
  Electric supply1,153,0271,539,5671,412,977
  Housing488,933543,430822,377
  Housing construction49,18569,896109,950
  Post and Telegraph746,316659,045704,000
  Land Settlement300,000584,455996,394
  Other accounts26,79047,46011,380
Interest on Public Debt Redemption Fund300,724  
Interest on other public moneys1,937,7531,771,9361,829,276
Profits on trading undertakings2,171,7552,197,3002,162,111
Departmental receipts13,840,70913,047.75713,094,704
Other receipts1,7701,330 
Stock issued for payment of liability to Reserve Bank due to exchange-rate alteration 20,000,000 
    Totals117,116,115141,523,915124,996,634

The 1948–49 increase was principally due to the £20,000,000 received from stock issued for payment of the liability due to the Reserve Bank on account of the exchange-rate alteration in August, 1948. Increased returns from income-tax (inclusive of some receipts normally due in the previous year) more than offset the decline in Customs receipts. If the value of stock issued in 1948–49 be not taken into consideration, the 1949–50 receipts would then show an increase of £3,473,000 above those of the earlier year, principally as a result of higher receipts from Customs duties and sales tax.

Payments.—Payments from the Consolidated Fund are divided into two main groups, according to whether they are made under permanent or under appropriation. The latter heading covers the payments under the various departmental voles, while the former covers interest on and amortization of the public debt, and payments under numerous special Acts.

Payments under the main heads of permanent appropriation and each head of annual appropriation during the last three years were as follows:—

Head.1947–48.1948–49.1949–50.

*Additional amounts of £4,611,018 in 1946–47 and £1,785,713 in 1947–48, were allocated out of surplus funds and paid in the following financial year concerned.

† Paid from State Forests Account, abolished from 1st April, 1949.

‡ Included under vote, “Air.”

Permanent appropriations—£££
  Civil List101,72498,92397,095
  Debt services—   
  Interest17,825,05216,619,96016,736,820
  Amortization8,577,2239,183,1565,393,041
  Administration and management210,064225,961355,188
  Highways: Payment to boroughs, &c.219,281205,325234,026
  Transfer to War Expenses Account2,055,000*2,000,000* 
  Superannuation (subsidy and contribution)200,0002,530,0002,590,000
  Other items132,908322,410254,715
  Payment to Reserve Bank for liability due to exchange-rate alteration 20,576,207 
 29,321,25251,761,94225,660,885
Annual appropriations—   
  Legislative152,500177,521170,618
  Prime Minister's Department156,966221,449164,263
  External Affairs673,909621,151733,009
  Treasury309,710354,096380,663
  Stabilization14,621,91711,687,13714,855,588
  Customs272,086329,713348,215
  Land and Income Tax560,749731,772770,560
  Stamp Duties169,458191,867209,517
  Audit104,311108,419127,167
  Public Service Commission63,87281,41381,070
  Internal Affairs3,184,8251,417,9351,595,265
  Island Territories652,876663,234838,083
  Printing and Stationery669,451676,010692,942
  Marine434,283480,570417,668
  Labour and Employment935,8731,479,1451,816,629
  Maori Affairs463,807521,219461,162
  Valuation171,276220,557256,375
  Electoral35,25720,094290,682
  Census and Statistics75,55776,72991,700
  Rehabilitation373,330349,304342,018
  Justice and Prisons554,872605,919707,328
  Crown Law12,97113,67916,675
  Police968,8361,073,9991,206,207
  Navy1,736,6272,300,5333,138,223
  Army3,470,2452,229,8762,609,409
  Air4,175,2195,857,9334,074,496
  Maintenance of Public Works and Services6,405,2346,759,4757,711,790
  Highways maintenance3.404,0813,920,7724,140,012
  Lands and Survey1,184,2581,238,6241,030,715
  Forest Administration810,659695,963
  Agriculture1,609,7091,844,6312,161,428
  Milk Marketing  308,596
  Industries and Commerce1,276,855520,271468,446
  Tourist and Health Resorts452,738596,541799,476
  Scientific and industrial Research745,005774,433958,750
  Mines107,166132,438142,743
  Transport220,849317,738359,996
  Civil Aviation and Meteorological Services1,525,146
  Health5,962,0658,081,4578,865,147
  Education8,883,2469,588,98811,613,630
  War and other Pensions4,688,3124,926,0815,368,228
  Payment to Social Security Fund16,000,00015,000,00012,000,000
  Other Services not provided for68,845127,800482,409
    Totals, annual appropriations86,009,15187,131,21295,028,007
    Grand totals115,330,403138,893,154120,688,892

The amounts shown under the head of “Education” do not represent the full payment on education services, expenditure under special Acts and from the revenue from certain endowments, &c., not being included. A statement of public expenditure on education is given in Section 6 (Education) of this volume.

PUBLIC WORKS.—For the prosecution of the policy of public works inaugurated in 1870 there was set up a Public Works Fund. For many years all expenditure on public works was borne by this fund, but in course of time separate subsidiary accounts were established to deal with certain special activities. These subsidiary accounts became merged in the General Purposes Account of the. Public Works Fund, or ceased to exist on the completion of the work for which they were called into existence. Under section 4 of the Finance Act No. 2, 1943, the Public Works Fund was abolished and a Public Works Account substituted as from 1st April, 1942. The Electric Supply Account and the Electric Supply Sinking Fund Account, which formerly ranked as part of the Public Works Fund, were then shown as separate accounts. The Electric Supply Sinking Fund Account was abolished as from the 31st March, 1944.

The Construction Fund of the Main Highways Account, which was established in 1923–24 to provide finance for the construction, reconstruction, &c., of main highways, was analogous to the Public Works Fund, and its operations were for some years included in the Year-Book statement of public-works receipts and payments. The Construction Fund of the Main Highways Account was later (1st April, 1936) combined with the Revenue Fund. With the abolition of the Main Highways Account as from the 1st April, 1947, however, receipts and expenditure on highways construction have been incorporated in the Public Works Account, and are accordingly shown in the amounts given below.

Receipts.—A summary of receipts of the Public Works Account for the last three financial years is contained in the following table.

1947–48.1948–49.1949–50.
 £££
Linen-flax, sale of produce and disposal of assets142,911142,58312,768
Forest development 467,827711,413
Receipts—   
  Education Department52,10621,07139,956
  Highways construction22,22635,94235,543
  Housing construction673,5071,148,1141,476,116
  Irrigation, water-supply, and drainage72,992166,941184,450
  Lands, miscellaneous93,21918,8823,285
  Lighthouses and harbour-works4,4653,157Dr. 1,724
  Public buildings359,719123,157137,748
  Railway construction37,44420,01917,657
  Roads, &c.7,72239,27757,745
  Soil conservation and rivers control75,18045,38870,406
Loan-money11,400,00016,028,42517,791,275
Miscellaneous31,52820,88617,636
    Totals12,973,01918,281,66920,554,274

Payments.—Particulars of payments from the account for the three financial years 1947–48 to 1949–50 are now given. Expenditure on forest development was included in the State Forest Account until its abolition as from 1st April, 1948.

1947–48.1948–49.1949–50.

* Includes amounts of £117,000 on account of Tasman Empire Airways, Ltd., and £150,000 for New Zealand Woolpacks and Textiles, Ltd., under authority of the. Finance Act (No. 2), 1939, and Finance Act, 1940, respectively.

† Purchase of shares in Tasman Empire Airways, Ltd.

 £££
Forest development 1,423,8392,228,091
Housing construction6,638,9918,886,32210,708,620
Irrigation, water-supply, and drainage417,312286,110283,756
Lighthouses and harbour-works9,8038,11120,238
Public buildings2,136,4221,080,4631,096,958
Educational buildings1,065,8701,650,3962,336,512
Railway construction122,776128,725365,087
Roads, &c.325,534405,654464,649
Soil conservation and rivers control326,914464,942602,193
Highways construction1,333,3032,005,5692,342,139
Christmas Island Phosphate Rights 1,375,000 
Other267,029*257,99828,813
    Totals12,643,95417,973,12820,477,056

For the three years concerned, balances at the end of the year were: 1947–48, £913,101; 1948–49, £1,221,641; and 1949–50, £1,298,860.

In addition to expenditure on roads from the Public Works Account, there is expenditure incurred in reading Crown lands and lands purchased for settlement, which is a charge on the Land Settlement Account.

ELECTRIC SUPPLY ACCOUNT.—As from 1st April, 1942, the Electric Supply Account, which formerly ranked as part of the Public Works Fund, became a separate account. The main items of receipts and payments of the Electric Supply Account for the last three years were as follows:—

1947–48.1948–49.1949–50.
Receipts
 £££
Loan-money5,500,0005,000,0006,250,000
Sales of electrical energy3,128,6103,905,3664,445,601
Miscellaneous receipts250,709  
    Totals8,879,3198,905,36610,695,601
Payments
 £££
Development of water-power, &c.6,942,3387,524,5578,412,126
Interest on capital liability1,153,0271,539,5671,412,977
Debt redemption173,742191,402356,401
Taxation—   
  Income-tax144,076 153,110
  Social security charge21,684 23,043
  Subsidy to Government Superannuation Fund 12,86218,942
    Totals8,434,8679,268,38810,376,599

The balances in the account at the end of each of the three years were: 1947–48, £608,105; 1948–49, £245,083; and 1949–50, £564,085.

LAND-SETTLEMENT ACCOUNTS.—Through the closing of several accounts and the merging of these in other accounts or funds, there now remains only one account dealing primarily with land-settlement—viz., the Land Settlement Account, which covers numerous and diverse activities in connection with land-settlement.

The principal advances accounts, those relating to State advances to settlers, workers, &c., are, as stated earlier in this subsection, outside the Public Account and are not included here.

A statement of receipts and payments of the Land Settlement Account for the year 1949–50 is now given. The figures for the 1948–49 year are in respect of the former Land for Settlements Account, which was abolished as from the 1st April, 1949, by the Land Act, 1948, and the present account established in its place. Rents, royalties, and interest from Crown Lands previously credited to the Consolidated Fund are payable to the Land Settlement Account as from the 1st April, 1949. The balances at the end of each year quoted were £653,291 in 1948–49 and £787,008 in 1949–50.

1948–49.1949–50.
Receipts
 ££
Loan-money2,450,0003,300,000
Lands and Survey Department—  
  Capital receipts3,973,286541,135
  Rents, interest, royalties, &c.917,982
  Receipts from settlement of ex-servicemen3,143,428
  Receipts from civilian development schemes300,176
  Miscellaneous receipts448
  Subsidy on marginal lands, &c., from Consolidated Fund199,92010,000
Maori Affairs Department—  
  Receipts from land-development schemes1,267,9671,120,863
  Receipts from other activities290,623
  Subsidy on marginal lands, &c., from Consolidated Fund161,0004,000
  Other receipts8383
  Balances from Deposits Account and amount received from Public Trustee in terms of Land Act, 1948 110,424
      Totals8,052,2569,739,162
Payments
 ££
Land for settlements52,308 
Small farms development5,839,402 
Crown lands 800,353
Settlement of ex-servicemen 5,637,511
Maori land settlement1,613,9952,053,643
Interest on capital liability584,455996,393
Other interest charges107,91792,373
Payment to Loans Redemption Account 1,265
Other51,43823,908
      Totals8,249,5159,605,446

The increase in expenditure during recent years is due to the acquisition and development of land for the repatriation of discharged servicemen.

TRADING ACCOUNTS.—Several important trading operations of the Government are outside the scope of the Public Account, while certain others are included in the Consolidated Fund. The Electric Supply Account also covers both construction and trading operations. Trading accounts, other than those which might be so regarded but have already been dealt with under previous headings, are the Working Railways and the State Coal-mines Accounts.

Receipts and payments of the Working Railways Account during the last three years were as follows:—

1947–48.1948–49.1949–50.

* Transfers from National Development Loans Account.

Receipts
 £££
Railway revenue16,468,94818,086,43919, 087,089
Stabilization subsidy640,0251,102,8661,055,556
Miscellaneous receipts2,129,7312,079,9763,219,258
Loan-money*1,650,0001,746,0002,900,000
Interest37,74822,74113,750
Railway Employees' Sick Benefit Fund subsidy7,50013,40010,200
      Totals20,933,95223,051,42226,285,853
Payments
Annual appropriations—£££
  Working Railways19,830,31621,458,28122,829,126
  Improvements and additions to open lines1,717,7861,717,1322,763,400
Subsidy to Government Superannuation Fund 245,901291,464
Subsidy to Railway Employees' Sick Benefit Fund7,50013,40010,200
      Totals21,555,60223,434,71425,894,190

At the end of each year the following balances remained in the Account: 1947–48, £1,960,517; 1948–49, £1,577,226; and 1949–50, £1,968,883.

The corresponding statement of receipts and payments of the State Coal-mines Account for the last three years is now presented:—

1947–48.1948–49.1949–50.

* Transfers from National Development Loans Account.

Receipts
 £££
Rents, royalties, sale of coal, &c.2,862,3153,693,7594,796,634
Loan-money*1,560,0001,500,000900,000
Housing and other loans: repayment of principal and interest14,62820,61920,895
Realization of investments held by companies acquired by Crown 276,22519,519
Miscellaneous receipts9,85015,96043,504
      Totals4,446,7935,506,5635,780,552
Payments
Annual appropriations—   
 £££
State Coal-mines4,074,5665,247,5925,321,978
Services not provided for142,383 170,873
Transfer to Loans Redemption Account for redemption of securities49,004358,153109,375
Subsidy to Government Superannuation Fund 2,3383,549
      Totals4,265,9535,608,0835,605,775

Balances at the end of March for years 1947–48 to 1949–50 amounted to £223,270, £121,751, and £296,528 respectively.

SOCIAL SECURITY FUND.—The Social Security Fund was established as from the 1st April, 1939, under the authority of the Social Security Act of 1938. Receipts and payments of the fund during the last three years were as follows:—

1947–48.1948–49.1949–50.
Receipts
 £££
Social security charge26,176,63429,378,38531,702,570
Miscellaneous receipts97,32358,51452,905
Transfers from Consolidated Fund16,000,00015,000,00012,000,000
Interest11013717,698
      Totals42,274,06747,437,03643,773,173
Payments
 £££
Administration expenses and emergency benefits935,740980,6681,063,977
Medical, hospital, &c. benefits7,021,4887,875,4488,461,109
Monetary benefits32,485,47134,140,24636,826,721
Balance of maintenance moneys427580263
Reciprocity benefits  1,715
Services not provided for 956,641
      Totals40,443,12642,997,03746,360,426

The balances remaining in this account for the three years were as follows: 1947–48, £7,241,918; 1948–49, £8,861,918; and 1949–50, £6,094,665.

More detailed information concerning payments under the various headings are given in Section 26 of this Year-Book.

MAIN HIGHWAYS ACCOUNT.—The Main Highways Account was concerned with the construction and maintenance of main highways and the payment of subsidies to local authorities. Its receipts consisted mainly of special taxation collected by the Consolidated Fund and paid over less certain deductions, and moneys borrowed for purposes of main highways construction. This account was abolished as from the 1st April, 1947, by the Finance Act (No. 2), 1947, receipts and payments relating to the contraction of main highways thereafter being shown in the Public Works Account, and those covering maintenance in the Consolidated Fund.

WAR EXPENSES ACCOUNT.—The War Expenses Account was set up under the provisions of the War Expenses Act of 1939, and all receipts and payments in connection with the war effort were dealt with through this account. Defence expenditure was previously included as an annual appropriation of the Consolidated Fund, and upon the War Expenses Account being brought into existence the unexpended balances of the 1939–40 appropriations under this heading were transferred to the new account.

Commencing with the 1946–47 financial year, the defence vote was restored to the Consolidated Fund, and current defence expenditure has since been met from that source. Expenditure arising from or consequent upon the Second World War, however, was paid from the War Expenses Account up to and including the financial year 1949–50, when the account was finally abolished.

A summary of receipts and payments of the War Expenses Account for the years 1948–49 and 1949–50, with the totals since its inception to 31st March, 1950, is as follows:—

1948–49.1949–50.1939–40 to 1949–50.

* For details see Subsection 25 B.

† Includes £2,287,826 unexpended balances of 1939–40 Defence appropriations.

‡ Includes £452,131 transferred from Deposits Account. Marine Insurance (War Risks) Fund.

Receipts
 £££
Loan-money  303,367,187
National security tax*  95,053,166
Other war taxation*  129,960,998
Miscellaneous receipts437,164374,05319,069,443
Transferred from Consolidated Fund4,238,143 40,489,987
Transferred from marketing pool accounts21,866 499,339
Recovery of expenditure, Armed Forces foodstuffs  885,344
Reciprocal aid—   
  Lend-lease  106,223,953
  Canadian mutual aid  6,159,337
Reverse lend-lease  725,000
Disposal of surplus assets1,535,835969,00033,750,218
Allied military currency issued to Second New Zealand Expeditionary Force overseas1,714 2,518,699
Military currency issued to occupation troops, Japan  274,851
Rehabilitation: Repayment of advances, &c.1,540,7621,906,2636,318,105
Aeroplane fund  162,579
Fiji Government contribution  168,750
Amount received from U.S.A. Government in reimbursement for war supplies not eligible for reciprocal aid  3,269,204
    Totals7,775,4843,249,316748,896,160
1948–49.1949–50.1939–40 to 1949–50.
Payments
 £££
Navy18,8843,09643,365,758
Army1,661,069255,047312,380,424
Air Force168,54060,726148,736,581
AncillaryCr. 523,038Cr. 101,91038,755,603
Rehabilitation4,590,6693,934,34522,851,308
Reciprocal aid: reverse lend-lease  82,201,517
Amortization of debt  62,005,704
Purchase of aeroplanes for Royal Air Force  162,579
Gratuities1,329,447127,82022,283,659
Loss on devaluation: occupation currency  63,359
Allied military currency repaid94,817 151,328
Gifts to Britain  13,572,964
    Totals7,340,3884,279,124746,530,784

Balances at the 31st March, 1949, were £3,395,183 and at 31st March, 1950, £2,365,374.

NATIONAL DEVELOPMENT LOANS ACCOUNT.—Since the inauguration of the National Development Loans Account in April, 1942, all loan-moneys raised for public works and other capital purposes are first paid into this account and then transferred to the various accounts covering the activities for which the moneys are required.

Particulars of the amounts transferred from the National Development Loans Account during each of the last three financial years were as follows:—

1947–48.1948–49.1949–50.
 £££
Public Works Account11,400,00016,028,42517,791,275
Electric Supply Account5,500,0005,000,0006,250,000
Land Settlement Account1,700,0002,450,0003,300,000
State Coal-mines Account1,560,0001,500,000900,000
State Forests Account1,050,000  
Working Railways Account1,650,0001,746,0002,900,000
Post Office Account  2,500,000
Iron and Steel Industry Account173,000  
Loans Redemption Account2,121,940  
Purchase of shares in the British Commonwealth Pacific Airlines, Ltd.297,000 241,935
Purchase of shares in the British Petroleum Company of New Zealand, Ltd.255,000765,000191,250
Purchase of shares in Dominion Salt, Ltd.  50,000
Transfer to New Zealand National Airways Corporation240,000685,000275,000
Transfer to Linen Flax Corporation 110,000 
    Totals25,946,94028,284,42534,399,460

EARTHQUAKE AND WAR DAMAGE FUND.—The Earth quake and War Damage fund, which replaced the War Damage Fund created by the War Damage Act, 1941, was set up under the provisions of the Earthquake and War Damage Act, 1944. During the years 1948–49 and 1949–50 premiums paid into the fund amounted to £544,499 and £587,765, and interest on investments amounted to £126,594 and £170,325 respectively. Payments during the same years amounted to £383,974 (including £339,525 on account of adjustment of value of investments held in London occasioned by the exchange-rate alteration in 1948) and £32,534, leaving balances of £6,109,959 and £6,835,516 in the fund at 31st March, 1949, and 1950 respectively.

A description of the provisions of the Act and further details of the fund will be found in Subsection D of Section 30.

25 B—TAXATION

TOTAL TAXATION.—All revenue collected by means of taxation was until the end of the financial year 1921–22 paid into the Consolidated Fund and applied to general purposes. From 1922–23 to the 5th December, 1927, however, certain items were paid into the Main Highways Account to help defray the cost of improving and maintaining roads. From the last-mentioned date all such moneys have been paid into the Consolidated Fund in the first instance, and (with certain exceptions) transferred to the Main Highways Account until the abolition of this account as from the 1st April, 1947. The proceeds of social-security taxation are paid direct into the Social Security Fund, while a similar position obtained in the case of war taxation, receipts from this source having been paid direct into the War Expenses Account. As from 1st April, 1946, all receipts previously included under the heading of war taxation and credited to the War Expenses Account have been paid to the Consolidated Fund.

A summary of taxation revenue during the last twelve years is given in the following table. In addition to total taxation the amounts received from direct taxes on income-are also shown.

Year.Direct Taxes on Income (i.e., Income-tax and War and Social Security Charges on Income).Total Taxation.
Amount.Percentage of Total Taxation (All Sources).Amount.
Total.Per Head of Population.Total.Per Head of Population.
 ££s.d. ££s.d.
1938–3914,296,109817537.837,797,9042392
1939–4020,432,1671210245.944,522,0282752
1940–4134,563,737212756.361,360,84037103
1941–4239,845,130248958.568,163,25641162
1942–4353,977,4413218261.487,940,84453124
1943–4463,311,9653813362.8100,839,48461117
1944–4568,438,477412363.0108,681,81465510
1945–4671,582,8704116962.3114,954,8736739
1946–4763,873,162360756.5113,119,04663162
1947–4863,581,244351752.0122,275,9116792
1948–4978,386,0574261060.1130,440,2497093
1949–5080,186,0204271159.2135,556,31971136

Excluding the special taxation levied for social security purposes, taxation revenue in 1949–50 amounted to £103,853,464. Of this amount, £48,483,450, or 46.7 per cent., was received from direct taxes on income.

The following table shows receipts under the various heads of taxation during the last five years.

Head.Revenue for Year ended 31st March,
1946.1947.1948.1949.1950.

* Sec also under war taxation for year 1945–46.

Consolidated Fund—£££££
  Customs revenue*8,800,01615,718,98324,390,88119,111,48621,474,533
  Beer duty*2,308,6004,251,5094,404,0514,555,3744,822,340
  Motor-vehicles taxation2,324,0682,972,0363,543,9543,613,7433,640,116
  Land-tax937,395939,559854,456916,120967,386
  Income-tax*26,465,91232,085,05736,632,58149,007,67248,483,450
  Sales tax*1,505,44315,550,54715,945,81314,105,22414,785,320
  Death duties* 5,951,6765,666,1726,032,3905,713,750
  Racing taxation1,555,2472,082,2532,198,2092,103,7602,268,491
  Other stamps taxation1,246,8421,515,7801,518,1741,488,1061,585,367
  National-security tax* 9,404,221772,029  
  Other taxation227,195243,772172,833127,864112,711
    Totals48,370,71890,715,39396,099,153101,061,739103,853,464
Social - security taxation—     
  Social-security charge14,557,46022,383,88426,176,63429,378,38531,702,570
  Registration fees, &c.609,84819,769124125285
    Totals15,167,30822,403,65326,176,75829,378,51031,702,855
War taxation—     
  National-security tax21,737,527    
  Income-tax8,821,971    
  Death duties5,024,014    
  Customs revenue2,861,443    
  Beer duty1,712,578    
  Sales tax10,558,975    
  Postage600,000    
  Miscellaneous100,339    
    Totals51,416,847    
    Total taxation receipts114,954,873113,119,046122,275,911130,440,249135,556,319
Taxation receipts per head of mean population—               
 £s.d.£s.d.£s.d.£s.d.£s.d.
  Ordinary (Consolidated Fund)28555135530454111054183
  Social security817412129148101517516153
  War3010            
    Totals6739631626792709371136

During the early years of the depression period heavier imposts were made in existing fields of taxation and, in addition, new classes of taxation were imposed, the latter including a sales tax and a scheme of special taxation for the relief of unemployment and the promotion of employment. This employment-promotion tax was replaced in 1939–40 by social-security taxation. Later the need of finance for New Zealand's war effort necessitated the imposition of new taxes and additional charges under many existing headings.

Compared with 1938–39, the financial year immediately preceding the outbreak of war, revenue from taxation in 1949–50 showed an increase of £97,758,415 or 259 per cent.

Receipts from income-tax in 1949–50 were slightly below those of the previous year, but increases, mainly in Customs and excise duties, sales tax, and social-security charge, combined to produce an over-all increase in taxation receipts amounting to £5,116,070 or 3.9 per cent. as compared with 1948–49. Taxation for ordinary revenue purposes increased by £2,791,725 (2.8 per cent.) as compared with the previous year, and social-security taxation by £2,324,345 (7.9 per cent.).

In 1949–50 taxation for ordinary revenue purposes accounted for 76.6 per cent. of the total taxation receipts and social-security taxes for 23.4 per cent. If to the total of social-security taxes is added the £12,000,000 transfer from the Consolidated Fund the 1949–50 taxation used for social-security purposes amounts to 32.2 per cent. of the total taxation receipts for the year.

The figures under the various headings in the preceding table are to a small extent swollen by the inclusion of penalties for late payment, and of fines for offences under the various taxation Acts. The figure shown for the postage item of war taxation was the amount paid to the War Expenses Account out of postal revenue, following the imposition of increased charges as part of the war-taxation measures.

The Social Security Act, 1938, provides that, in addition to the special taxation for the purposes of the Fund, payment may be made to the Fund of such other moneys as may be appropriated by Parliament from time to time, and a substantial amount has been transferred from the Consolidated Fund each year. Also, several substantial amounts have been transferred from the latter Fund to the War Expenses Account. The total amount transferred to the Social Security Fund since its inception in 1939–40 to 31st March, 1950, is £89,009,367, while during the same period £40,489,987 has been transferred to the War Expenses Account. The following table shows for each of the last eleven years the taxation receipts of the Consolidated Fund, the amounts transferred as indicated above, and the taxation receipts of the Social Security Fund and War Expenses Account plus the amounts of these transfers.

Year Ended 31st March,Consolidated Fund.Social Security Taxation Plus Transfers.War Expenses Taxation Plus Transfers.
Taxation Receipts.Transfers to—
Social Security Fund.War Expenses Account.

* Includes £809,367 from surplus of previous year.

† Unexpended balances of 1939 Appropriations.

‡ Includes £4,611,018 and £1,785,713 respectively from surplus of previous year.

 £££££
194032,810,5991,809,367*2,287,82611,338,9604,469,662
194134,873,7323,200,000 13,941,86115,745,247
194235,161,9463,600,0003,226,00014,663,85625,163,454
194336,195,8653,800,0003,172,00015,988,64342,728,336
194442,107,6194,100,00011,700,00017,477,77357,144,092
194545,689,3964,500,0006,200,00018,760,06654,932,352
194648,370,7187,000,000 22,167,30851,416,847
194790,715,39318,000,0003,000,00040,403,6533,000,000
194896,099,15316,000,0006,666,01842,176,7586,666,018
1949101,061,73915,000,0004,238,14344,378,5104,238,143
1950103,853,46412,000,000 43,702,855 

A comparison of taxation revenue and total private income and national income is afforded by the following table, which also shows taxation as a percentage of private income and national income.

Year.Total Private Income.National Income at Factor Coat.Taxation Revenue.
Total.As a Percentage of—
Private Income.National Income.
 £(m)£(m)£(m)Per Cent.Per Cent.
1939–40217.7212.144.520.421.0
1940–41237.8232.461.425.826.4
1941–42259.4254.568.226.326.8
1942–43297.7293.587.929.529.9
1943–44332.8326.5100.830.330.9
1944–45340.9329.9108.731.932.9
1945–46364.5350.1115.031.632.8
1946–47395.7365.3113.128.631.0
1947–48445.5410.8122.327.529.8
1948–49461.4418.4130.428.331.2
1949–50518.3472.7135.626.228.7

The following diagram shows the extent to which taxation has increased since the year 1923–24. The extent to which employment-promotion taxation and the later social-security taxation have contributed towards this increase and the huge impost for war purposes are also clearly portrayed.

CUSTOMS AND EXCISE TAXATION.—Revenue included under the heading of Customs is exclusive of receipts from tire-tax and from that portion of the motor-spirits tax which is imposed to provide funds for reading purposes, referred to under the next heading. Gold-export duty, and sales-tax receipts are not counted as ordinary Customs revenue, although collected by the Customs Department. The following figures show Customs and excise revenue, for ordinary revenue purposes, for the last five years. Figures for the 1945–46 year, however, include revenue derived from war imposts which, though not counted as ordinary revenue for that year, was in the later years included in the ordinary Customs revenue and in the total taxation (Consolidated Fund).

Year Ended 31st March.Customs Duties.*Beer Duty.Total Customs and Excise Duties.Proportion of Total Taxation (Excluding Social Security).

*Excise duties other than beer duty are here included with Customs duties.

 £££Per Cent.
194611,661,4594,021,17815,682,63715.72
194715,718,9834,251,50919,970,49222.01
194824,390,8814,404,05128,794,93229.96
194919,111,4864,555,37423,666,86023.42
195021,474,5334,822,34026,296,87325.32

The total amount of Customs and excise revenue for 1949–50 was £26,296,873, as compared with £11,727,224 in the pre-war year 1938–39. Beer duty included in the foregoing figures amounted to £4,822,340 in 1949–50 and £1,076,796 in 1938–39.

Increases in the rate of beer duty and in the tax on motor-spirits, for general revenue purposes, were brought into operation on 2nd August, 1939. As from 27th September, 1939, additional duties were imposed on certain items (including beer and tobacco, which two items were subject to still further increases in duty as from 11th May, 1942); the additional revenue in these cases was appropriated for war purposes, and paid direct into the War Expenses Account, until the 1st April, 1947, and thereafter into the Consolidated Fund. Information in regard to these increases and Customs and excise duties generally is contained in Section 9D, Customs Tariff and Revenue

MAIN HIGHWAYS TAXATION.—The Main Highways Act, 1922, laid down that the Revenue Fund (the Revenue and Construction Funds merged as from 1st April, 1936) of the Main Highways Account was to be credited, inter alia, with—

  • All moneys received as Customs duties imposed in respect of rubber tires, rubber tiring, and inner tubes of rubber for pneumatic tires, n.e.i. (as per the Customs tariff):

  • All moneys received by the Crown under any Act in respect of the licensing of motor-vehicles.

The tire-tax was imposed by the Customs Amendment Act, 1921, prior to the passing of which tires had been admitted free. The licensing of motor-vehicles by the Crown became operative in the financial year 1924–25, consequent upon the passing of the Motor-vehicles Act, 1924.

A third class of taxation for main-highways purposes was introduced towards the end of 1927 by the Motor-spirits Taxation Act of that year, which imposed a duty of 4d. per gallon on all motor-spirits imported. The rate was increased to 6d. per gallon in 1930. The duty collected was paid into the Consolidated Fund in the first place, and after deduction of expenses of administration and of refunds (which are provided for in cases where the motor-spirits are used otherwise than for motor-vehicles) the residue was divided between (1) the Main Highways Account, and (2) boroughs with a population of 6,000 or over, in the proportions of 92 per cent. and 8 per cent. respectively. The Main Highways Account was abolished as from 1st April, 1947, but provision was made that amounts subject to appropriation by Parliament from the Consolidated Fund for highway purposes must not be less than the total of the net revenues which would have been available under the former system. An additional 2d. per gallon was imposed from 7th October, 1931, a further 2d. from 9th February, 1933, and a further 4d. from 2nd August, 1939, but these additional imposts (totalling 8d. per gallon, or 8 7/10d. with the surtax of 7/10d. per gallon on imports from foreign countries) are for general purposes, and the proceeds are treated as part of the ordinary Customs revenue.

By section 19 of the Finance Act, 1932–33 (No. 2), substituted later by section 4 of the Motor-vehicles Amendment Act, 1934–35, a mileage-tax was imposed on motor-vehicles using fuel other than motor-spirits. This tax is allocated in a similar manner to the tax on motor-spirits, part of the receipts being regarded as the equivalent of Customs taxation and the balance after deduction of administration expenses and refunds, being regarded as part of the net revenues for highway purposes.

Taxation receipts for highway purposes have been as follows during the last five years.

Year Ended 31st March.Fees, &c., under Motor-vehicles Act.*Tire-tax.Motor-spirits Taxation.Mileage-tax.Total.

*Under Transport Act, 1949, as from 1st November, 1949.

 £££££
1946499,484154,1611,660,39710,0262,324,068
1947479,412210,0292,268,27214,3232,972,036
1948768,898246,9122,496,62113,4883,525,919
1949736,386241,1362,598,87015,9743,592,366
1950705,57664,3492,823,36919,9973,613,291

LAND AND INCOME TAX.—A brief history of the various changes in the rates of, and the law relating to, land-tax and income-tax between 1915 and 1939 is contained in the 1940 and previous issues of the Year-Book. The principal alterations which have taken place since 1936 are as follows:—

As part of the programme of the then Government, a graduated scale of land-tax was reintroduced as from 1st April, 1936. An amended scale of income-tax, with somewhat heavier imposts, was also adopted, and various changes were made in regard to exemptions. Under the amended scale the reduction of exemptions with increasing income was discontinued, as was also the special flat-rate tax on incomes over £500. The 1936 amendment, superseded by the 1940 amendment, provides that taxpayers may be required to pay their income-tax by instalments instead of in one sum as formerly.

With a view to obtaining additional revenue for general governmental purposes, legislation was passed in 1939 reducing the general exemption from £210 to £200, and increasing the basic rates of taxation.

In connection with the provision of finance for war purposes, the War Expenses Act of 1939 increased all rates of income-tax for the 1939–40 tax-year by 15 per cent. This surcharge was retained for the 1940–41 and 1941–42 tax-years, and was increased to 33⅓ per cent. for the tax-years 1942–43 to 1945–46, but, commencing with the 1946–47 tax-year, it has been reduced to 15 per cent.

Income derived from farm-lands of an unimproved value of under £3,000 (from 1931–32) was, up to the passing of the Land and Income Tax Amendment Act, 1939, exempt from income-tax. The 1939 Act provides for all profits or gains derived from the use or occupation of any land to be regarded as assessable income. This Act also made provision (amended in 1940 and 1941) for the taxation of income of “proprietary” companies—i.e., companies under the control of not more than four persons.

By the Land and Income Tax Amendment Act of 1940 certain State trading Departments, which were previously exempt, were made liable for the payment of income-tax; the special exemption in respect of children was extended to include children brought to New Zealand under any Government scheme and being supported by any taxpayer; unpaid land-tax, once registered, was constituted a first charge on land until all arrears are paid; and a new scale of basic rates of income-tax was provided.

The Land and Income Tax Amendment Act of 1941 brought the provisions for taxation of banking companies into line with those for other companies.

Under the Finance Act, 1942, the Commissioner of Taxes is empowered to require any person to deduct income-tax from payments due to defaulting taxpayers and to pay every sum so deducted to the Commissioner.

The Land and Income Tax Amendment Act, 1944, increased the personal exemption of absentees from £50 to £200, and also made provision for deductions from assessable income in respect of deferred maintenance of assets where reasonable and proper maintenance was prevented by conditions arising out of the 1939–45 war.

The Land and Income Tax Amendment Act, 1945, increased, commencing with the tax-year 1946–47, the special exemption in respect of a dependent wife or husband, or of a housekeeper whose duties include the care of a widowed or divorced taxpayer's child or children, from £50 to £100, and abolished the special exemption of £50 in respect of a dependent child. These adjustments were made as the result of the amendment to the Social Security Act which extended the family benefit to cover all children, irrespective of the income of the parents. Before the abolition of the exemption in respect of a dependent child could be carried into effect, however, the matter was again considered, and the exemption was restored by the Land and Income Tax Amendment Act, 1946. The 1945 amendment also modified the special exemption in respect of a dependent relative, and increased the personal allowance of absentees where the incomes of husband and wife are aggregated. It also made provision for a special depreciation allowance, commencing with the tax-year 1946–47, in respect of any premises, plant, or machinery acquired, erected, installed, or extended by a taxpayer on or after 1st April, 1945, and not later than 31st March, 1948. This allowance is in addition to the ordinary depreciation allowance provided for by the principal Act. The 1945 amendment further provided that, where the income of a taxpayer had been unduly increased upon the sale or other disposition of any live-stock by reason of the adoption of a standard value that was less than the true value, the Commissioner might, upon application in writing before 30th June, 1946, reduce the assessable income for any particular year or years. Provision was also made for the names of persons convicted of tax evasion, &c., to be published in the New Zealand Gazette.

The Land and Income Tax Amendment Act, 1946, made provision for agreements to be made with the Government of any territory outside New Zealand with a view to affording relief from double taxation. This amendment also abolished the excess-profits tax imposed by the Excess Profits Tax Act, 1940.

The Land and Income Tax Amendment Act, 1949, provided that in computing taxable income for the purposes of an aggregate assessment, a husband and wife are allowed a total ordinary exemption of £400 in all cases, irrespective of whether the income is derived from assessable or non-assessable sources. In addition, the period for allowance of the special depreciation on buildings and plant was extended to 31st March, 1951. Other provisions included the deduction from a farmer's assessable income of expenditure on trees planted for shelter or to prevent erosion, &c.; the spreading of income derived from the sale of timber from farms over a period of up to five years in all, the spreading of excess income derived from sale of a substantial part of the live-stock of a farming business where unduly low-standard values had been adopted, and that trading-stock sold for an inadequate consideration shall be deemed to have been sold at the market-price current at the time of the sale, for the purposes of arriving at the assessable income of the person selling the stock.

The 1950 amendment to the principal Act abolished the 33⅓ per cent. additional charge in the case of unearned income imposed by the 1931 amendment and later incorporated in the basic rates fixed by the Land and Income Tax Amendment Act, 1940. In effect, the former distinction for taxation purposes between earned and unearned income is removed. The same amendment also increased the special exemption from land-tax from an unimproved value of £500 to an unimproved value of £1,000.

The Land and Income Tax Amendment Act (No. 2), 1950, provides for a special income-tax rebate of £15 to persons who have attained the age of sixty-five years; exempts from income-tax the income of societies formed for the purpose of advertising, beautifying, or developing any district with a view to attracting trade, tourists, or population, and not for private profit; enables a husband who is separated from his wife to claim an exemption in respect of his wife to the same extent as if she were a dependent relative; extends the period for allowance of special depreciation on buildings and plant to the 31st March, 1952; authorizes the Commissioner to grant an initial depreciation allowance of 30 per cent. in respect of new farm equipment or new accommodation for farm workers acquired after 31st March, 1950, and prior to the 1st April, 1953; and, subject to provisoes where the land is sold within five years, provides for an allowance for land-development expenditure to farmers, such as on eradication of animal or vegetable posts, felling of bush, weed-destruction, and on swamp drainage, irrigation channels, rabbit-proofing offences, &c., the allowable deduction not to exceed £200 in the aggregate of the latter class in any income year.

This amending Act also provides for testamentary annuities charged on any property and paid out of income to be claimed as a, deduction, and for income derived from Western Samoa, and chargeable with income-tax there, to be exempted from income-tax in New Zealand. Certain transfers or settlements of income (not including marriage settlements or those made prior to 24th November, 1950) are to be disregarded for income-tax purposes and the transferor or settlor remains liable for tax as if these had not been made. Other sections exempt the Christmas Island Phosphate Commission from taxation, and empower the Commissioner to grant relief from payment of income-tax of up to £100 without the necessity of obtaining the Minister's approval.

Statistics relating to the incidence of income-tax are given in Section 36 of this volume.

Land-tax.—Land-tax is assessed on the unimproved value of land after deductions provided for by statute have been made by way of special exemption. An owner of land, the unimproved value of which does not exceed £1,500, was hitherto allowed an exemption of £500, this being increased to £1,000 by the Land and Income Tax Amendment Act, 1950: and where the unimproved value lies between £1,500 and £2,500 there is a similar exemption, diminished, however, by £1 for every £1 over the £1,500 mark, so that no exemption is allowed when £2,500 is reached.

Where the land is subject to a registered mortgage an alternative scale of exemption is provided—viz., £7,500 in cases where the unimproved value does not exceed £7,500, the exemption of £7,500 being diminished by £1 for every £1 above the margin of £7,500 of unimproved value, and disappearing altogether at £15,000. Where the capital value of the mortgage is less than the amount of deduction provided, such capital value is deducted instead.

No special exemption is allowed in the case of land not situated in a borough, when such land has been owned by a person for three years and not improved to the extent of £1 per acre or equal to one-third of the unimproved value, if in the opinion of the Commissioner of Taxes it should have been so improved. In the case of such land, also, the rate of land-tax is 50 per cent. more than the ordinary rate.

In lieu of the special exemptions set out above, the Commissioner of Taxes has discretionary powers to grant relief in certain specified cases of hardship. Subject to deductions provided, life tenants are liable to tax, and joint owners are assessed jointly as regards the land held in conjunction, and are liable severally in respect of each owner's interest in such land and any other land. This liability for joint assessment also applies to companies owning land if half of the paid-up capital or half (in nominal value) of the allotted shares of each company is held by or on behalf of shareholders in the other.

In case of default by a taxpayer in respect of land-tax the amount of tax may be demanded from his successor in title, from a tenant of the taxpayer or his successor, or from a mortgagee of the estate or interest concerned. Land-tax constitutes a charge on the land, and, notwithstanding any disposition of it, such land continues to be liable in the hands of a purchaser or other holder thereof for the payment of the tax so long as the charge remains in force. Registration of the charge is required, and no disposition of the land or of any interest in it may be registered while the charge remains in force. Provision is made for relief in oases of hardship.

Where the unimproved value on which land-tax is payable does not exceed £5,000 the present rate of land-tax is 1d. in the pound. This rate is increased by 1/8000d. for every £1 in excess of £5,000, with, however, a maximum rate of 6d. in the pound.

Income-tax.—Income-tax is payable on the full incomes of registered companies and certain public authorities, and in other cases on income in excess of £200 per annum. A deduction of £100 from assessable income is allowed in respect of a dependent wife, diminished at the rate of £2 for every complete £1 by which the personal income derived by the wife exceeds £50. A similar deduction is allowed in respect of a dependent husband, and an exemption of up to £100 is allowed a widower, widow, or divorced person in respect of a housekeeper whose duties include the care and control of a child or children in respect of whom the taxpayer is entitled to a special exemption; £50 deduction is allowed for each dependent child or grandchild under eighteen years of age, and also in respect of each child, brought to New Zealand under any Government scheme, who is dependent on the taxpayer; and amounts up to £50 contributed towards the support of a relative of the taxpayer are also deductible from assessable income, provided that such relative is not in receipt of a monetary benefit under the Social Security Act. Exemption up to 15 per cent. of assessable income, but with a maximum exemption of £150, is allowed for life-insurance premiums and National Provident Fund, superannuation, and similar contributions. With the exception of the personal exemption of £200, none of the foregoing exemptions is allowed to absentees. Allowance is made for depreciation of premises and plant used in the production of income, the revised scale of depreciation adopted as from 1st April, 1939, in the case of premises being 2½ per cent. for wooden-frame buildings; 1½ per cent. for brick, stone, or concrete walled buildings; and 1 per cent. for buildings of reinforced stone or concrete throughout and steel-framed buildings covered with iron, asbestos, or similar material. In addition to the foregoing, provision has been made for a special depreciation allowance commencing with the tax-year 1946–47 in respect of any premises, plant, or machinery erected, acquired, installed, or extended on or after 1st April, 1945, and not later than 31st March, 1948. The latter date has been subsequently extended to the 31st March, 1952. Any allowance made in this connection is to be in respect of the income derived during the five years from the date that the premises, &c., were first used in the production of assessable income. The amount of the deduction is limited in the aggregate to 30 per cent. of the total cost spread over the period as follows: first year, 10 per cent.; second year, 8 per cent.; third year, 6 per cent.; fourth year, 4 per cent.; and fifth year, 2 per cent. Where a taxpayer has been prevented from maintaining assets in a proper or reasonable manner by conditions arising out of the 1939–45 war, a deduction from assessable income may be allowed in respect of deferred maintenance. The minimum amount that may be so allowed is £100, and the amount applied for is to be deposited with the Commissioner of Taxes, and paid to the Consolidated Fund. At any time after the expiration of twelve months from the date of the deposit, the taxpayer may apply for a refund of the whole or a part thereof, but in no case may the amount of the refund be less than £50. Any amount so refunded is deemed to be assessable income for the income year in which the refund is made. A deduction may also be made in respect of any premium paid on account of leased machinery used in the production of income. Certain specified incomes are wholly exempt from taxation.

Income derived from debentures of companies, local authorities, and public authorities is taxable at the source unless a certified list of the debenture-holders (with certain other particulars) is furnished. Where such income is taxed at the source an adjustment is obtainable, so that no taxpayer need pay tax on debenture interest at a higher rate than on income from other sources.

Companies pay tax on their full income (at the appropriate rate for such income) before distribution of dividends. The recipient of income from dividends does not pay income-tax on such part of his income, but the amount is taken into account in fixing the rate of tax to be paid. This provision also applies in the case of income from “tax-free” Government securities or “tax-free” company debentures.

In respect of stock or debentures issued by the Government of New Zealand, or by any local or public authority, or by the Public Trustee as agent of a land-settlement association, interest is not liable to New Zealand income-tax if it is payable out of New Zealand to a person not resident in New Zealand.

Income-tax is payable on the taxable balance—i.e., assessable income less exemptions—and is assessed at the following basic rates, which were laid down in the Land and Income Tax Amendment Act of 1940 and amended by the Finance Act, 1942 and the Land and Income Tax Amendment Act, 1950. In addition, a surcharge of 15 per cent. of the amount assessed is made, subject to a maximum rate of 15s. 6d. per £1.

Debentures issued by Companies and Local and Public Authorities.—(i) Where the income has been derived from debentures issued by a company on terms providing for the payment of income-tax by the company, the rate of tax is 8s. 8d. per £1; (ii) in other cases where the income has been derived by a company or a public authority, the rate of tax is 12s. per £1.

Companies and Public Authorities.—On income not included above, the rate of income-tax for every £1 of taxable income in the case of companies and public authorities is: (i) Where the taxable income does not exceed £6,300, 2s. 6d., increased by 1/100d. for every £1 of taxable income; (ii) where the taxable income exceeds £6,300, 7s. 9d., increased by 1/150d. for every £1 of the taxable income in excess of £6,300, but so as not to exceed in any case the rate of 8s. 8d. per £1.

Other Taxpayers.—On all income not included above, the rate of income-tax is as follows, subject to the concessions outlined below. The former addition of one-third made in the case of unearned income was abolished commencing with the tax-year 1950–51 as provided for in the Land and Income Tax Amendment Act, 1950. On so much of the taxable income as does not exceed £100, the rate of tax per £1 is 2s. 6d.; for each succeeding £100 or part thereof the rate of tax increases by 3d. until it reaches a maximum of 12s. for every £1 in excess of £3,800. There is a limit of 15s. 6d. in any £1 of taxable income but this rate is not reached even with the addition of the surcharge of 15 per cent. The Land and Income Tax (Annual) Act, 1948, provided for a rebate in the assessment to the value of £10 from the tax payable, or where this was less than £10, a rebate of the amount of tax. Where an aggregated assessment was made under the Land and Income Tax Amendment Act, 1939, the rebate was to be equal to the sum of the rebates allowable as if the assessments for the husband and the wife had been made separately. This provision was continued in the 1949 and 1950 annual Acts. The Land and Income Tax Amendment Act (No. 2), 1950, also provided for a special rebate of £15 to persons aged sixty-five years or over.

The Finance Act, 1942, provided for a new method of assessing income-tax where two classes of income were involved—e.g., earned and unearned, or earned and nonassessable. In the case of taxable income that was wholly earned or wholly unearned, however, the method remained the same. The Land and Income Tax (Annual) Act, 1947, repeated in the corresponding 1948 and 1949 Acts, granted some measure of relief from the addition of one-third of the tax on unearned income, in cases of persons on small incomes. Where the unearned taxable income, or the total of unearned and earned taxable income did not exceed £200, it was subject to earned rates of tax only. Where it exceeded £200 but was less than £400, the amount of unearned income to be treated at earned rates was not to be greater than the difference between the taxable income and £400. The 1950 Act abolished the one-third impost on unearned income which had been current since 1932, so that there is now no difference in dealing with the former two classes of income.

Legislative authority is given in the Land and Income Tax Amendment Act of 1940 for income-tax to be assessed for any year at the basic rates specified, any change required being in the form of an addition or deduction of a certain percentage.

The following table shows the amount of income-tax payable on various amounts of assessable income by individual taxpayers classified according to marital status (married or otherwise) and, in the case of married taxpayers, according to the number of dependent children under eighteen years of age. Limitation of space precludes the inclusion of cases where there are more than three children, but, as stated earlier, an exemption of £50 is allowed for each child. The amounts of tax shown are based on the rates in force (exclusive of the £10 rebate) for the tax-year 1950–51 and thus relate to incomes received during the income year 1949–50. In addition to the personal and dependant's exemptions, which have been allowed for in calculating the amount of tax payable, further deductions from the assessable income would be made in respect of life assurance premiums, National Provident Fund, superannuation, and similar contributions.

The opportunity has also been taken to show the amount of the social-security charge. This tax, which is payable in addition to income-tax, is referred to under a later heading. The present rate is equivalent to 1s. 6d. per £1 of income, and it should be noted that, unlike income-tax, there are no deductions (personal, dependent relatives, &c.), the charge being levied on the full amount of income.

Assessable Income.Social-security Charge.Income-tax* payable by Persons—
Unmarried.Married with Dependent Wife.Married with Dependent Wife and—
One Child.Two Children.Three Children.

*All amounts of income-tax shown in table are to be reduced by £10, this being the value of the rebate granted for the years 1948–49, 1949–50, and 1950–51, and for persons aged sixty-live or over, by an additional £15, in the latter year.

££s.d.£s.d.£s.d.£s.d.£s.d.£s.d.
300221001476            
400300030391476739      
500371004789303922571476739
6004500662647893816330392257
700521008650662656157478938163
800600010716386507639662656157
90067100130163107163970786507639
1,000750015550130163119631071639707
1,50011210029900267762525723739222163
2,0001500047813943917642139402100384107
2,50018710069463648636260760315058239
3,00022500945176892139866163840189815157
3,5002621001,233761,173001,1431071,114131,08563
4,000300001,5561631,489501,456391,423261,390157
4,5003371001,9011631,8321631,798631,7631631,72963
5,000375002,2461632,1771632,143632,1081632,07463

In interpreting this table as an indication of the incidence of social-security and income taxation in New Zealand, it should be noted that under the provisions of the Social Security Act a family benefit of £26 per annum is paid in respect of each child under sixteen years of age, irrespective of the income of the parents. This has operated from 1st April, 1946. The family benefit is normally paid to the mother, but with her concurrence may be used as an offset against income-tax due. As examples of the effect of this benefit, it will be observed that a married man with an income of £500 per annum and one child would pay £37 10s. social-security charge and £22 5s. 7d. (less £10 rebate) income-tax. He would, however, receive £26 per annum in family benefit. A married man on an income of £500 per year with three children would pay £37 10s. social-security charge and (with rebate) no income tax. The family benefit would amount to £78 per annum in this case, an amount £40 10s. greater than his payments of income-tax and social-security charge.

DEATH DUTIES.—The law dealing with these classes of duty is embodied in the Death Duties Act, 1921, as subsequently amended. The main heads of taxation are estate and succession duties, which are generally referred to by the collective title of “death duties.” In addition to these there are gift duties and Maori succession duties.

Estate and succession duties are due and payable to the Commissioner of Stamp Duties on assessment, an additional 5 per cent. penalty, together with interest at 5 per cent. per annum, being payable if duty is not paid within three months after death. On so much of the duties as is paid within fifteen months (this period may be extended in certain cases) after the date of death, however, the rate of interest is reduced to 4 per cent. per annum. Gift duties are payable at the time the gift is made, and Maori succession duties before the registration of the succession order by the Maori Land Court. Generally the decision of the Commissioner of Stamp Duties in regard to matters of fact incidental to the assessment of duty is final, but there is an appeal on points of law or of fact by way of a case stated to the Supreme Court. An appeal on a question of law may be referred to the Court of Appeal.

Part III of the Finance Act, 1939, provides for a reduction in the amount of death or gift duty payable in oases where the margin above the limit of value on which a lower rate is payable is small.

The War Expenses Act, 1939, increased all rates of estate, succession, and gift duty by one-third, for the provision of war finance. The increase in the rate of duty applied to the estates of all persons dying after the 26th September, 1939, and, in so far as it related to gift duty, applied to all gifts made subsequent to 26th September, 1939.

Part IV of the Finance Act, 1940, repealed the provisions of the War Expenses Act, 1939, mentioned previously, and established new and increased rates for all classes of death and gift duties. Section 8 of the same Act provided for all revenue accruing from death and gift duties to be paid direct into the War Expenses Account as from 1st April, 1940. Provision was also made for the exemption from death duties and gift duty of gifts to the Government for war purposes.

The net revenue received from death and gift duties during each of the last five years was:—

Year Ended 31st March.Estate Duty.Succession Duty.Gift Duty.Total Death Duties.
 ££££
19463,648,3401,083,984291,6905,024,014
19474,236,6121,266,491448,5735,951,676
19484,071,1511,160,911434,1105,666,172
19494,285,4271,301,672445,2916,032,390
19504,086,1601,234,208393,3835,713,751

The provision in regard to the payment of death and gift duties to the War Expenses Account was repealed as from 1st April, 1946, and receipts from these duties are again payable to the Consolidated Fund.

Estate Duty.—When the final balance of the dutiable estate of a deceased person, estimated as at the date of his death, exceeds £500, an estate duty is levied on the amount thereof. In the case of any estate the final balance of which does not exceed £10,000, any interest acquired by the wife of the deceased up to the value of £5,000 and, by the Finance Act, 1947, £500 for each child under 21 years, is exempt from estate duty, provided that the amount of deduction shall not in any case exceed the difference between the final balance and £10,000. The rate of duty on the whole estate must, however, be determined before any deduction is made. The principal Act, as amended in 1939, also provided that the wife, lineal descendant, or lineal ancestor of a soldier who met his death on account of the war of 1914–18 or the 1939–45 war is allowed £5,000 exemption from estate duty, but in the case of a wife or child these exemptions are in substitution for and not in addition to the exemption already mentioned. The value of any life-insurance policy or policies comprised in the estate was, by the Death Duties Amendment Act of 1925, deductible up to a maximum of £1,000, irrespective of the amount of the estate, but the Finance Act of 1939 repealed this provision as from 1st August, 1939.

Up to 1920 duty was leviable on property in excess of £500, and the scale of duties ranged from 1 per cent. in cases where the net estate was between £500 and £1,000 to a maximum of 15 per cent. for large estates. The amendment made to the scale in 1920 considerably increased the duty payable, the rates, which were embodied in the Act of 1921, ranging from 1 per cent. on estates not exceeding £2,000 in value to 20 per cent. on estates of more than £100,000. Part II of the Finance Act, 1930, imposed a rate of 30 per cent. on the amount by which the final balance exceeded £100,000. Part III of the Finance Act, 1939, imposed higher rates of duty, ranging from 1⅓ per cent. on estates not exceeding £2,000 in value to 30 per cent. on estates exceeding £100,000 in value.

The War Expenses Act of 1939 increased all rates of estate duty by one-third, but Part IV of the Finance Act, 1940, provided a new scale of duties as follows:—

Final Balance of Estate.Rate per Cent.

*Plus Additional 1 per cent. for every £500 or fraction thereof in excess of £500.

†Plus additional ½ per cent. for every £1,000 or fraction thereof in excess of £7,000.

‡ Plus additional ½ per cent. for every £1,000 or fraction thereof in excess of £31,000.

§ Plus additional 1/10 per cent. for every £1,000 or fraction thereof in excess of £70,000.

££
Up to 500Nil
Over 500 to 5,0001*
Over 5,000 to 6,00011
Over 6,000 to 7,00012
Over 7,000 to 31,00012
31,000 to 70,00024
70,000 to 100,00037§
100,00040

Succession Duty.—In addition to the estate duty referred to above, a succession duty is payable by any person who acquires a beneficial interest in the estate of a deceased person either by will or by intestacy. An exemption from duty is made in favour of charitable trusts, and special provision is made that the wife, lineal descendant, or lineal ancestor of a soldier who has met his death on account of the war of 1914–18 or the 1939–45 war is allowed a £5,000 exemption in addition to the amounts otherwise provided.

The rates of duty vary according to the degree of relationship of the beneficiary to the deceased person. Part III of the Finance Act, 1939, effected a general increase in the rates, which had remained unaltered since 1920, while all rates were increased further by the War Expenses Act, 1939, and increased still further by the Finance Act, 1940.

The scales of duties as outlined in the Finance Act, 1940, and operative as from 30th June, 1940, are as follows:—

  • Wife.—The rate varies from 2 per cent. for amounts exceeding £5,000 but not exceeding £6,000, to 12 9/10 per cent. for amounts exceeding £70,000.

  • Husband.—From 2 per cent. for amounts exceeding £500 but not exceeding £2,000, to 163 per cent. for amounts exceeding £59,000.

  • Children, &c.—From 1 per cent. for amounts exceeding £500 but not exceeding £1,000, to 16 per cent. for amounts exceeding £61,000.

  • Parents, Brothers, Sisters, &c.—From 3 per cent. for amounts exceeding £200 but not exceeding £500, to 21 per cent. for amounts exceeding £61,000.

  • Other Relatives.—From 6 per cent. for amounts exceeding £200 but not exceeding £500, to 22⅗ per cent. for amounts exceeding £57,000.

  • Other Cases.—From 10 per cent. for amounts exceeding £200 but not exceeding £500, to 31 9/10 per cent. for amounts exceeding £14,000.

In all the above cases provision is made to allow for a reduction in the amount of succession duty payable, so that it will not exceed the difference between the estate duty payable in respect of such succession and percentages of the succession ranging from 50 in the case of wife or husband to 60 in cases other than relatives.

In cases where the successor is a child of the deceased and is under the age of twenty-one years at the time of death of the deceased, no succession duty is payable on amounts up to £1,000, and in successions exceeding that amount the full amount of duty is payable only in cases where the balance will not be reduced below £1,000.

In respect of moneys exceeding £1,000 that may be payable to persons domiciled out of New Zealand, and where the beneficiary is not the husband or wife of the deceased or a relative of the deceased within the third degree of consanguinity, there is an additional rate equal to 10 per cent. of the excess over £1,000.

Maori Succession Duty.—Where any succession order is made by the Maori Land Court on the death of a Maori, no death duty in the ordinary way is payable on the property included in it, but a Maori succession duty of 2 per cent. is payable on the value of the property, with a general exemption of £200.

Gift Duty.—A gift means any disposition of property (situate in New Zealand at the time of the gift) which is made otherwise than by will, whether with or without an instrument in writing, without full and adequate consideration in money or its equivalent. No duty is payable on a gift which, together with the value of all other gifts (not exempt from duty by reason of their nature) made at the same time or within twelve months previously or subsequently by the same donor to the same or any other beneficiary, otherwise than by way of a charitable trust, does not exceed the value of £500. Exemption from gift duty is also provided in cases of voluntary discharge of a mortgage debt where the donor and beneficiary are not connected by ties of blood or marriage. Various other exemptions were made by the Death Duties Amendment Act, 1923.

The amount of the gift duty is payable by either the donor or the beneficiary, but the beneficiary is entitled to be indemnified by the donor unless the terms of the gift provide otherwise. Particulars of any gift made are required to be furnished for assessment of duty within one month of the date of the gift, and in default an additional duty of 50 per cent. is payable. Where duty is payable, the rate (since 30th June, 1940) is based on the following scale.

Value of Gift.Rate of Duty. Per Cent.
Over £500 to £1,0005
Over £1,000 to £5,0009
Over £5,000 to £10,00015
Over £10,000 to £20,00020
Over £20,00025

Prior to 1920 there was a flat rate of 5 per cent. on all gifts exceeding £1,000 in value. Gifts between £500 and £1,000 were made dutiable in 1930.

STAMP DUTIES.—The term “stamp duties” covers a miscellany of items of taxation imposed by the Stamp Duties Act, 1923, and subsequent amendments.

The receipts for the last five years are shown under the various heads of stamp duties revenue as used in the public accounts.

Year Ended 31st March,
1946.1947.1948.1949.1950.
 £££££
Adhesive stamps169,134230,581199,916182,721214,172
Duty on instruments508,279600,336579,674530,800596,992
Fines and penalties2,2432,9862,3992,3632,341
Impressed stamps252,303293,244322,919339,556355,547
Licences to companies93,184101,819107,866115,984122,140
Sharebrokers' licences1,4721,4966,4261,5731,740
Racing taxation1,555,2472,082,2532,198,2092,103,7662,268,491
Amusements-tax178,450226,569221,209243,765256,716
Lottery duty28,02427,20027,36128,64927,873
Oversea-passenger duty10,23126,93846,13337,0362,598
Mortgagees' indemnity fees1,6441,8501,8101,7651,834
Miscellaneous1,8782,7612,4613,8933,414
    Totals2,802,0893,598,0333,716,3833,591,8663,853,858

Several of the more important items included in the foregoing table are dealt with in more detail under subsequent headings.

RACING TAXATION.—The Government tax on totalizator (pari mutuel) investments is 5 per cent. of the gross amounts passed through the machines. This percentage was substituted in August, 1930 (by Part I of the Finance Act, 1930), for the former rate of 2½ per cent., which had been in force since March, 1910, prior to which the percentage was 1½. A refund of 2½ per cent., raised from 1¼ per cent. by the Finance Act (No. 2), 1935, of gross totalizator takings (up to a limit of £500) may be made to a racing club, the Minister of Internal Affairs having the right to specify the purpose or purposes for which the amount refunded in any case is to be applied.

For some years prior to 1939–40 special provision was made annually for the racing clubs to retain for their own use a proportion of the totalizator duty payable under the Stamp Duties Act. From 1st April, 1932, to 31st March, 1934, the proportion was one-fifth, for the next twelve months it was one-tenth, and from 1st April, 1935, to 31st March, 1939, the former proportion of one-fifth was in operation.

From the 1st November, 1915, a tax of 1 per cent. was imposed on the total value of all stakes, and a tax of 2½ per cent. on totalizator dividends, in addition to the tax on totalizator investments. The tax on dividends is computed on the gross amount paid into the totalizator for any horse-race after deducting 12½ per cent. (raised from 10 per cent. by the Finance Act, 1930) to cover the tax on totalizator investments and the club's commission. From the 22nd December, 1921, the tax on stakes was increased to 10 per cent. and that on dividends to 5 per cent. From the 1st April, 1924, the tax on stakes was reduced to 5 per cent., with a further reduction to 1 per cent. from 1st August, 1935.

The following figures relate to the racing year, which ends on the 31st July. As a war measure in the first instance, horse-racing was from April, 1942, confined to Saturdays and public holidays, and permits were so reduced that the number of racing days in 1942–43 and 1943–44 was only 163, as compared with 320 in 1938–39. Although racing is still largely restricted to Saturdays and public holidays, permits have been raised to the extent that the number of racing days in 1949–50 was greater than in 1938–39.

Year Ended 31st July,
1945.1946.1947.1948.1949.1950.

* Retained by the clubs.

Number of racing-days182316320319320338
Number of races1,4552,5212,5542,5522,5602,703
 ££££££
Amount of stakes604,0611,077,5661,246,5441,400,9781,406,6581,449,377
Totalizator investments12,030,43219,956,75121,999,37423,209,96822,837,19525,041,532
Amount paid in dividends9,944,84216,500,22118,195,59619,189,80418,881,70020,706,416
Government taxes—      
  On totalizator investments601,522997,8381,099,9691,160,4981,141,8601,252,077
  On dividends526,268873,001962,3561,016,738998,9711,095,334
  On stakes6,04010,77612,46514,00014,06614,494
    Totals1,133,8301,881,6152,074,7902,191,2362,154,8972,361,905
Percentage of totalizator investments retained by clubs902,5521,496,7571,649,9531,740,7481,712,7901,878,115
Unpaid fractions*55,24888,93491,500102,180101,874109,590
Refunds of taxation granted to clubs40,05750,22656,42756,72459,72159,894

For the financial year ended the 31st March, 1950, Government receipts from racing taxation amounted to £2,268,491, but £56,029 of this was paid back to clubs by way of refunds.

Of the amount invested on the totalizator in 1949–50, 82.7 per cent. was returned to investors by way of dividends, Government taxes less refunds absorbed 9.1 per cent., while racing clubs retained 8.2 per cent. Of the 338 racing days in the 1949–50 racing year, 239 were devoted to racing (galloping) meetings and 99 to trotting meetings. It should be mentioned, however, that a number of racing clubs include trotting events in their programmes, but there are no trotting clubs which cater in a similar manner for gallopers. Of the total amount invested during the year, £17,738,417 was invested at racing meetings and £7,303,115 at trotting meetings, giving an average of £74,219 per day for racing clubs and £73,769 per day for trotting clubs. Stakes paid at racing meetings totalled £1,002,172, the average amount per race being £524, while at trotting meetings the total was £447,205, and the average amount per race £565.

AMUSEMENTS-TAX.—A form of tax first introduced in 1917 is the amusements-tax, levied on payments for admission to entertainments. The present authority is the Amusements-tax Act, 1922, amended in 1923, 1930, and 1937. “Entertainment” is defined as “any exhibition, performance, amusement, game, or sport to which persons are admitted for payment.” The maximum admission charge on which no tax is payable was originally fixed at 9d., but has been successively altered to 1s., 2s., and (in 1930) 1s. 6d. When the payment for admission exceeds 1s. 6d., but is not more than 2s., the tax is 3d.; thereafter, up to 3s., it is 4d.; up to 3s. 6d., 5d.; and above 3s. 6d., 1d. for each 1s. or part thereof, plus 2d. “Payment for admission” includes reservation charges. Provision is made for exemption in certain specified cases—viz., shows promoted by agricultural, pastoral, horticultural, or poultry societies; entertainments, the proceeds or the net proceeds of which are devoted to charitable, philanthropic, patriotic, or educational purposes; any entertainment promoted by any society or institution not established for profit, if the proceeds or net proceeds are devoted to the objects of the society or institution; and any swimming-sports meeting.

The following net amounts have been collected during the last eleven years.

Year Ended 31st March,Amount collected.
 £
194095,644
194192,700
194294,415
1943107,433
1944148,225
1945155,943
1946178,450
1947226,569
1948221,209
1949243,765
19502.6,716

FILM-HIRE TAX.—Part V of the Finance Act, 1930, imposed, as from 1st July, 1930, a film-hire tax, which is payable monthly by holders of renters' licences under Part IV of the Cinematograph Films Act. 1928.

The film-hire tax payable is assessed on the net monthly receipts derived by the renter from renting sound-picture films. On British Commonwealth films the tax is 10 per cent. and on foreign films 25 per cent., of the net receipts. Films made wholly in New Zealand are exempt from the tax. The film-hire tax yielded a revenue of £134,472 in 1945–46, £134,918 in 1946–47, £111,155 in 1947–48, £108,285 in 1948–49, and £112,701 in 1949–50.

SOCIAL-SECURITY TAXATION.—The Social Security Act, 1938, provided for the establishment of a Social Security Fund with special taxation (as from 1st April. 1939) superseding employment-promotion taxation, information concerning which will be found in the 1941 (p. 515) and preceding issues of the Year-Book.

Under the original Act the contributions to the Social Security Fund consisted of a registration fee and a charge on salaries, wages, and other income for all persons over sixteen years of age. For males over twenty years of age the registration fee was 5s. per quarter, and for all other persons over sixteen years of age 5s. per year; while for all persons over sixteen years of age the charge on salaries, wages, and other income was 1d. in every 1s. 8d. or part thereof. The Finance Act (No. 2), 1945, abolished the registration fee, the effective date being 1st April, 1946. The same Act increased the social-security charge to 1½d. for every 1s. 8d., the new rate applying to all salaries and wages in respect of any period after 12th May, 1946, and in the case of income other than salaries and wages to all such income derived during the year ended 31st March, 1946, and subsequent years. The income of companies was exempt from the former employment-promotion taxation, but is liable for social-security taxation.

Receipts from social-security taxation during each of the last five financial years have been as follows:—

Year Ended 31st March,Charge on—Registration Fee, &c.Totals.
Salaries and Wages.Other Income.
 ££££
19469,161,2185,396,242609,84815,167,308
194713,519,8008,864,08419,76922,403,653
194816,105,49110,071,14312426,176,758
194916,744,52912,633,85612529,378,510
195018,766,78012,935,79028531,702,855

NATIONAL-SECURITY TAXATION.—National-security taxation was imposed by the Finance Act, 1940, for the purposes of war finance, and came into operation as from 21st July, 1940. This special taxation was assessed in the same manner and levied in respect of the same income as the social-security charge, except that there was no registration fee. The rate of the tax was originally 1d. in every 1s. 8d. or part thereof, but by the Finance Act, 1942, this was increased to 1½d. in every 1s. 8d. or part thereof. The increase applied to all salaries and wages derived in respect of any period after 10th May, 1942, and in the case of income other than salaries and wages to all such income derived during the year ended 31st March, 1942, and any subsequent year. This rate remained in force until it was reduced by the Finance Act (No. 2), 1945, to ½d. for every 1s. 8d., the change coinciding with the increase in the social-security charge referred to under the preceding heading, and becoming effective from the same dates. This tax was finally abolished by the Finance Act, 1947, the effective date in relation to salaries and wages being 21st April, 1947, while income other than salaries and wages derived during the year ended 31st March, 1947, was exempt from the charge.

From 1st April, 1946, the receipts from this tax which had previously been paid to the War Expenses Account were credited to the Consolidated Fund. From its inception in 1940–41 until it was abolished in April, 1947, national-security taxation produced £105,229,416, of which £95,053,166 was paid to the War Expenses Account and £10,176,250 to the Consolidated Fund.

SALES TAX.—The 9th February, 1933, marked the inauguration of a sales tax in New Zealand. Numerous classes of goods were exempt from the tax, these being, in the main, commodities of primary production, articles used in the primary industries, machinery for use in manufacture, and the more important foodstuffs for household consumption. Goods exported from New Zealand are exempt, as are also certain commodities (e.g., gold, motor-spirits) which are subject to special taxation

The tax was at the rate of 5 per cent. of the sale value of the goods to which it applied, but in June, 1940, and again in May, 1942, increases of a further 5 per cent. and 10 per cent. respectively were made for war taxation, the extra revenue thus accruing being paid direct to the War Expenses Account. Certain items, such as apparel, footwear, woollen piece-goods and yarns, and certain additional foodstuffs, were exempt from the additional 10 per cent., but in the case of wine manufactured in New Zealand an additional charge of 20 per cent. was added. As from 1st April, 1946, the total receipts from this tax have been credited to the Consolidated Fund. As from 16th August, 1946, a number of classes of goods previously subject to the tax have been exempted, the principal of these being building materials, furniture, clothing, and footwear. Further items exempted from sales tax, chiefly home labour-saving devices, were notified as from the 10th March, 1950. As from the 25th August, 1950, a wide range of articles commonly used in homes, together with some items more particularly used by farmers, were also exempted from sales tax. Discount ranging from 1 to 2½ per cent. (reduced from 5 per cent. in June, 1940) of the amount of tax otherwise payable is allowed for prompt payment. The tax is not a turnover tax, being payable once only and, so far as possible, at the point where the goods pass to the retailer. The Sales Tax Act is administered by the Customs Department. The net amount yielded by the sales tax during each of the last five years has been: 1945–46, £15,064,418; 1946–47, £15,550,547; 1947–48, £15,945,813; 1948–49, £14,105,224; and 1949–50, £14,785,320.

Monthly collections of sales tax during the four calendar years 1947–50 have been as follows:—

Month.Total Sales-tax Receipts.
1947.1948.1949.1950.
 ££££
January1,235,9331,577,5911,159,8011,426,481
February637,463695,732716,187923,770
March1,336,7431,657,6091,369,4141,560,963
April1,218,3441,360,5721,144,905842,722
May1,210,7651,265,2911,181,1081,812,930
June1,067,5131,317,3551,160,8161,512,455
July1,394,6911,191,5041,187,1111,330,310
August1,275,0681,188,9601,189,4341,349,637
September1,447,9441,103,9031,263,5561,551,645
October1,522,0791,132,8071,129,1931,539,087
November888,8111,213,0221,361,6011,578,401
December1,985,8541,292,2731,521,8791,523,031

The collections during a month relate in general to sales during the preceding month.

The foregoing statistics indicate, in a measure, the comparative distribution of merchandise trading operations throughout the year. The following table of receipts from the sales tax gives some indication of comparative trading operations in the principal centres. These figures and those in the preceding table, are compiled from monthly departmental returns and in most cases differ slightly from the final Treasury figures.

Year Ended 31st March,Auckland.Wellington.Rest of North Island.Christ-church.Dunedin.Rest of South Island.Totals.*

* Includes receipts through Post and Telegraph Department.

 £££££££
19465,285,7555,014,474726,8282,036,0301,406,709548,45415,047,757
19475,077,0495,698,620804,0962,022,6961,349,448549,86615,540,073
19484,571,7996,829,914842,6131,928,5521,186,310525,61215,942,001
19493,938,9526,456,314784,3511,570,0081,038,203482,18614,311,089
19504,284,6976,521,145914,6101,706,4191,042,899531,54015,050,817

LOCAL TAXATION.—Local-governing authorities have power under various Acts of the Legislature to impose taxes for general or special purposes, as set out in Section 27 of this Year-Book. The amount of revenue collected by local authorities during the five years ended 31st March, 1948, was as follows:—

Year Ended 31st March,Rates.Licences and other Taxes.Total.Per Head of Population.
 ££££s.d.
19447,823,730576,8718,400,601527
19457,895,871642,6688,538,539527
19468,633,329711,8259,345,154593
19479,541,133804,85210,345,9855169
19489,806,859906,77310,713,6325183

The figures are exclusive of wharfage dues, tolls, &c., received by Harbour Boards, such receipts being regarded as in respect of charges for services.

25 C—STATE INDEBTEDNESS

THE Minister of Finance may raise loans, when authorized by Parliament so to do, by the issue of debentures, or scrip, or stock, in New Zealand or elsewhere at his discretion. When raising a loan, the Minister may prescribe the mode and conditions of repayment, the rates of interest (not exceeding the maximum rate fixed by the authorizing Act), and the times and places of payment of principal and interest respectively. Power is given to convert debentures or scrip into consolidated stock, and the Minister may specify the terms of conversion at the time when a loan is raised, or arrange that terms shall be subsequently agreed upon. For the purpose of paying off or renewing at maturity any debenture, scrip, or other security, new debentures or other securities may be issued and disposed of if necessary. Authority also exists for the conversion of loan-money which has not yet matured, as well as for the redemption and cancellation of securities before maturity. Section 5 of the Finance Act (No. 2), 1934, authorized the Minister of Finance to transfer the management of the public debt to the Reserve Bank of New Zealand, and the transfer was effected as from the 1st October, 1936.

The money composing the public debt has been borrowed on the security of the public revenues of New Zealand. No portion of the public estate is pledged for payment of either principal or interest.

During the 1914–18 war period provision was made for the issue to the public of “Post Office investment certificates” of a face value of £1 and upwards, and in 1920 legislation which sanctioned a continuous issue of these certificates was enacted.

The proceeds of the sale of these certificates were paid into the Post Office Account, and the moneys were available for investment in any loan authorized by Parliament. The term of the certificates, formerly a minimum of five years, was altered in 1927 to such period as the Minister of Finance might determine. They were later issued with a definite currency of six years, the redemption value being calculated at 3 per cent. compound interest.

These certificates remained on issue until the passing of the National Savings Act, 1940, which made wider provision for the investment of savings. Although the Act provides that investments made in accordance therewith shall be applied in like manner to receipts from the sale of the Post Office investment certificates—i.e., available for the purposes of any loan authorized by Parliament—the immediate object was to assist in financing the 1939–45 war. Two forms of investment were provided:—

  1. Deposits in national savings accounts with the Post Office and certain authorized trustee savings-banks;

  2. Purchase of national savings bonds.

These investments are approved trustee securities, and bear interest at the rate of 3 per cent. per annum.

Deposits in national savings accounts cannot be withdrawn at will, but are invested for a definite period. Moneys deposited up to 30th June, 1943, were repayable on 30th June, 1945, and each subsequent investment period is for a term of two years—i.e., deposits made during the year ended 30th June, 1950, are repayable on 30th June, 1952, and so on. National savings bonds are issued in three denominations—£1, £10, and £100—and are for a term of five years.

At the commencement of the financial year 1943–44 a change in practice was effected in regard to the treatment of exchange on overseas transactions. As from that date the cost of exchange has been treated as a part of the payment from which it arises, and not accounted for in the public accounts under the one heading of “Exchange” as was the previous practice. For example, the cost of remitting interest to London, amounting to £1,314,757 in 1943–44, was included in the item “interest” on the expenditure side of the Consolidated Fund.

It was further decided that Government funds and investments hold in the United Kingdom as at 1st April, 1943, and all subsequent overseas transactions were to be converted into pounds New Zealand at a fixed exchange rate of 25 per cent. and brought into the, public accounts at the increased figure. Previously pounds New Zealand and pounds sterling were treated as if they were of the same value, despite the fact that New Zealand currency for many years had been at a discount on sterling.

In keeping with the foregoing decisions, that portion of the public debt domiciled in the United Kingdom, which was previously shown only at the sterling figure, has also been converted to pounds New Zealand, and the whole of the debt is shown in the debt tables in New Zealand currency in addition to the nominal amounts. The nominal increase resulting from the adjustment as at 1st April, 1943, was £39,568,574.

With the adjustment of the exchange-rate as from 20th August, 1948, New Zealand currency is once again on a par with sterling. To facilitate comparison over a period on a common basis the public debt tables in this section have, in general, been so shown that either nominal amounts or the amounts in New Zealand currency can be readily ascertained.

The National Development Loans Act, 1941, provided for the establishment within the Public Account, as from 1st April, 1942, of a National Development Loans Account into which all moneys raised by way of loans for national development are paid. The amounts so raised since the inception of this account to the 31st March, 1950, totalled £135,408,825, of which £28,281,425 was raised in the 1948–49 year, and £34,399,460 in 1949–50, this latter figure being inclusive of £15,000,000 1–per-cent Treasury bills. Moneys are transferred from this account as required, the amounts transferred during the last three years being given in Subsection 25A. There was no balance in the account at 31st March, 1950.

GROSS INDEBTEDNESS.—On only four* occasions in the history of New Zealand has a reduction in the gross public debt been effected during the financial year. The first occasion was in 1891–92, when the debt was reduced by £117,282; and the second in 1922–23, when another slight reduction (£101,061) was recorded. The third occasion was in 1934–35, when the huge floating debt of £22,856,981—comprising outstanding Treasury revenue bills amounting to £3,452,109 and Treasury bills for £19,404,872 in respect of the Banks Indemnity (Exchange) Act—was entirely paid off. The fourth occasion was in 1947–48, the debt being reduced by £3,137,446 in New Zealand currency (having regard to exchange rate relationships existing prior to the 20th August, 1948) or £302,043 if nominal amounts only are taken into account.

The gross indebtedness of the General Government and the rate of indebtedness per head of population (inclusive of Maoris) for each of the last nineteen years are given in the following table.

The figures are given in two series, the first showing the debt at the nominal amount throughout the period 1932–50, and the second, covering the same period, with the debt shown in New Zealand currency. In the latter case the amount of overseas debt has been converted to New Zealand currency at the rate of exchange ruling during the period.

* See, however, page 603 of 1940 Year-Book.

As At 31st March.Amount.Per Head of Population.
A—Nominal Amounts
 ££s.d.
1932281,942,800184163
1933282,622,958183152
1934302,791,99619568
1935280,581,2171791411
1936282,561,098179106
1937287,670,200181410
1938290,201,342180175
1939303,970,272187110
1940322,907,536196159
1941349,427,575213112
1942385,397,733235163
1943463,825,3722831610
1944526,717,06132235
1945563,417,81633576
1946594,331,51933815
1947604,571,690337210
1948604,269,64732988
1949641,176,74034255
1950670,071,34235014
B—In New Zealand Currency
1932297,906,98619557
1933322,973,1352091910
1934343,019,02222158
1935320,019,41320502
1936321,445,52120448
1937326,070,76920589
1938328,631,311204165
1939343,183,52621146
1940362,373,354220169
1941389,020,472237151
1942423,836,62425968
1943503,393,94730812
1944566,494,017344121
1945603,238,41235916
1946624,511,59036583
1947634,751,761353195
1948631,614,315344610
1949641,176,74034255
1950670,071,34235014

It should be noted that the figures in the foregoing table are inclusive of £26,191,109 nominal or in New Zealand currency £(N.Z.)32,738,886 in the years 1932–48—i.e., prior to the exchange rate alteration in 1948, in respect of which interest payments have been suspended by agreement with the Imperial Government from 1931. This amount consists of £24,100,200 (£(N.Z.)30,125,250 for 1932–48) advances from the Imperial Government funded in terms of the Finance Act, 1922, and £2,090,909 (£(N.Z.)2,613,636 for 1932–48) raised for State. Advances purposes.

An amount of £1,752,839, representing outstanding advances by way of overdraft in respect of the purchase of foodstuffs and other commodities under the authority of section 5 of the Marketing Amendment Act, 1949, is not included in the public debt as at 31st March, 1950.

The Hutt Road Act of 1939 made provision whereby the Wellington City Council shall be kept indemnified out of the Main Highways Account (since 1st April, 1947, out of the Consolidated Fund) from all liability in respect of certain loans, which at the time of the passing of the Act amounted to £276,020. The amount outstanding under this heading amounted to £20,600 as at 31st March, 1950, but against this, sinking funds to the value of £14,102 were held at that date by the Public Trustee.

In addition to the foregoing, there are certain contingent liabilities consisting of loans guaranteed by the State and State guarantees in respect of various undertakings. At 31st March, 1950, the amount of guaranteed loans outstanding was £71,187,721 of which £70,322,590 was in respect of State Advances Corporation stock and debentures, the major portion of which is at present held by the State in consideration of the transfer of property securities from the State to the Corporation and £841,657 on account of loans to industries by the Corporation. The remainder, £23,474, represented leans to local authorities.

State guarantees cover various items, such as: the State guarantee to policyholders of the Government Insurance Department under the Government Life Insurance Act, 1008; the guarantee to the Reserve Bank under the Finance Act, 1934, in respect of sterling exchange (which was exercised in the case of the adjustment of the New Zealand currency exchange rate to parity with sterling as from the 20th August, 1948); the guarantee under the Finance Act (No. 2), 1946, in respect of moneys advanced to Governments of other countries to finance the purchase of New Zealand produce; and those to certain undertakings under the State Advances Corporation Act. There were also certain contingent State liabilities in respect of the various Government Superannuation Funds.

CLASSIFICATION OF PUBLIC DEBT.—A broad classification of the public debt according to nature or purpose is contained in the following table, the distinction being made on the basis of whether raised for ordinary purposes, war purposes, or housing. It should be noted that the debt is expressed in terms of nominal amounts, these differing from figures in terms of New Zealand currency in respect of the 1940 year only.

Class.Gross Debt as at 31st March,
1914.1920.1930.1940.1950.

* Includes debt due to Imperial Government (see page 501.)

 £££££
Ordinary99,730,427121,081,730197,599,818247,308,296360,357,600
Housing   11,558,94557,330,720
War loans (1914–18) 80,089,02569,783,52560,954,24050,857,417
War expenses (1939–45)   3,086,055201,525,605
  Totals99,730,427201,170,755267,383,343*322,907,536*670,071,342

The total of 1914–18 war loans amounted originally to £82,245,673, of which approximately £31,000,000 had been redeemed to 31st March, 1950. The amount per head of population for each class as at 31st March, 1950, was as follows: ordinary, £188 3s.; housing, £29 19s.; war, 1914–18, £26 11s.; war expenses, 1939–45, £105 6s.

A more detailed allocation of the debt as at the 31st March, 1949, and 1950, is now given.

 1949.1950.

* Includes debt due to Imperial Government (see page 501.)

 ££
Railways81,466,81184,705,204
Hydro-electric schemes38,080,48643,974,085
Post and telegraph services18,816,65121,450,098
Public buildings12,956,05013,791,329
Education buildings16,070,33618,367,775
Roads and highways45,740,19648,453,719
Harbours and lighthouses1,667,6381,689,810
Forests (State)6,790,7068,307,384
Housing49,747,38057,330,720
Land settlement and improvement25,435,03128,730,481
Soil conservation, irrigation, and drainage7,634,5608,101,641
Shares in Bank of New Zealand7,967,5057,934,365
New Zealand National Airways Corporation1,225,0001,500,000
British Commonwealth Pacific Airlines, Ltd.300,000541,935
British Petroleum Co. of New Zealand, Ltd.1,083,7501,275,000
Dominion Salt, Ltd. 50,000
Linen Flax Corporation of New Zealand300,000300,000
New Zealand Woolpack and Textiles, Ltd.150,000150,000
Investment in State Advances Corporation34,001,69734,001,697
Share in Nauru and Ocean Island phosphates192,044 
Christmas Island phosphates1,375,0001,375,000
Mining5,346,0386,136,797
Tasman Empire Airways375,000375,000
Reserve Bank exchange adjustment20,000,00020,000,000
War Loans (1914–18)54,583,63550,857,417
War expenses (1939–45)203,874,693201,525,605
Miscellaneous assets and services4,774,8927,847,420
Cash and investments in hand1,221,6411,298,860
  Totals£641,176,740*£670,071,342*

MOVEMENT IN PUBLIC DEBT DURING 1949–50.—A summary of transactions in connection with the public debt during the year ended 31st March, 1950, is as follows:—

Amount outstanding at+ Increase; − Decrease.
31st March, 1949.31st March, 1950.
External debt—£££
  London106,153,210104,330,631—1,822,579
  Australia628,226628,226 
Internal debt—   
  Long-term debt479,395,304495,112,485+15,717,181
  Floating debt55,000,00070,000,000+15,000,000
    Totals641,176,740670,071,342+28,894,602

A more detailed statement which shows also the main purposes for which loan moneys were raised during the year 1949–50 is now given:—

External debt decreases—   
  London—   
    Repayments from—£££
      New issues in New Zealand1,822,579  
        Total decrease, external debt  1,822,579
Internal debt—   
  Increases—   
    New issues for—   
      National development purposes34,399,460  
      Repayments in London1,822,579  
      Repayments in New Zealand (net new issues)1,798,116  
        Total increases, internal debt 38,020,155 
  Decreases—   
    Redemption from Loans Redemption Account7,302,974  
        Total decreases, internal debt 7,302,974 
        Net increase in internal debt  30,717,181
Net increase in total public debt  £28,894,602

PUBLIC DEBT CONVERSION.—A scheme of conversion of practically the whole of the locally domiciled debt bearing interest higher than 4 per cent. was successfully carried out in the early part of 1933. Holders had the option of dissenting, but interest on the dissented portion was made subject to an interest-tax of 33⅓ per cent. Holders who signified neither assent nor dissent were regarded as having assented.

On the now securities issued in lieu of converted securities the interest-rate was 4 per cent. per annum, except that in the case of securities exempt from income-tax the rate was 3½ per cent. until expiration of the period of exemption and 4 per cent. thereafter. The new securities were spread over six maturity dates, as follows:—

* For securities exempt from income-tax.

15th January, 1940.15th April, 1949.
15th March, 1943.*15th May, 1952.*
15th February, 1946.15th June, 1955

In cases where interest was reduced by not more than 20 per cent., the new securities issued were for the same amount of principal as the converted securities. Where the reduction of interest amounted to more than 20 per cent., the holder received a premium, the conversion scheme thus involving a slight increase (£491,254) in the aggregate gross debt.

The amount of debt to which the conversion scheme applied was £115,000,000. Actual assent to conversion was given in respect of some £110,000,000, and implied assent to approximately £5,000,000, dissents expressed covering only £480,000, or less than ½ per cent. of the total.

The successful conversion of £5,000,000 5-per-cent. debt into 3½-per-cent. securities at £97 in October, 1933, was the only external debt operation undertaken during the fiscal year 1933–34.

During 1934–35 and 1935–36 further conversion operations were carried out in respect of external debt. The first comprised £3,989,100 of 4-per-cent. stock, which was converted to 3½-per-cent. stock at par in October, 1934. The second and larger operation concerned £10,135,800 of 5-per-cent. stock maturing in 1945 but with a right to redeem on or after 1st July, 1935. Of this, £8,000,000 was converted to 3-per-cent. stock at £98½, and the remainder (£2,135,800) redeemed.

On 1st August, 1936, the right accrued to redeem £5,869,989 of 6-per-cent. stock, and of this £4,000,000 was converted to 3-per-cent. stock at £98½, and the remainder (£1,869,989) redeemed, mainly by the utilization of funds in the Public Debt Repayment Account.

During the year 1936–37 opportunity was taken to exercise the right to repay £12,426,875 of 4-per-cent. 1937–40 stock and debentures domiciled in New Zealand. Cash and conversion applications totalled £11,440,249, and the balance required for redemption was found by the issue of Treasury bills for £925,000, and by the utilization of £61,626 from debt-redemption resources.

Stock to the value of £17,173,191 fell due in London on the 1st January, 1940, and to meet this the Government arranged for the issue of a £16,000,000 sterling cash and conversion loan bearing interest at 3½ per cent. per annum at £99 per cent. The remainder of the £17,173,191 was held by New Zealand institutions, and other arrangements were made fur its conversion. The £16,000,000 conversion loan issued in January, 1940, was disposed of in January, 1945, when the final instalment fell due. The conversion operations, which took place each half-year over the live years, resulted in £4,605,300 being converted in London and £11,394,700 repaid, the funds for redemption being found from moneys available in New Zealand for debt redemption and from the proceeds of issues in renewal in New Zealand.

Conversion of £21,273,480 New Zealand domiciled stock nearing maturity was provided for in the 1941 conversion loans, the prospectus of which was issued on 15th May, 1941. Two classes of stock were issued in this case—namely, 3¼-per-cent. stock issued at £97 per cent. and repayable on 15th September, 1957–60, and 3-per-cent. stock issued at par and repayable on 15th September, 1946–48.

Stock was issued in multiples of £5, and any stock or debentures subject to the oiler hut not converted was to be repaid at par on the respective conversion dates.

A conversion offer was also made in New Zealand to holders of stock and debentures totalling £9,807,450 maturing on 1st February, 1946, but in respect of which the Government had the option to repay on or after 15th February, 1943. This loan carried interest at 4 per cent., and the conversion offer was for 3-per-cent. stock maturing in 1960–63 with a premium of £3 per cent., or 2½-per-cent. stock maturing in 1949–51 with a premium of £1 per cent. Applications closed on 11th March, but as the conversion did not take place until May, the accounts for 1943–44 were not affected. Approximately £8,000,000 was converted, and the remainder paid off.

On 1st March, 1944, £7,339,656 sterling domiciled in London was due for repayment, bearing interest at 4½ per cent., and a conversion offer was made of 3½-per-cent. securities at par repayable on 1st March, 1960–64. The whole loan was converted into new stock, £6,017,000 sterling being taken up by existing holders in the new issue and the balance by the Reserve Bank of New Zealand.

A conversion offer was made in London to holders of £7,580,907 4½-per-cent. stock repayable on 1st March, 1945, and £9,657,280 3-per-cent. stock repayable on 1st April, 1945. New stock was offered at 3¼ per cent., maturing on 1st September, 1962–65, with a cash payment of 10s. per cent. to holders who converted. Applications for new stock totalled £14,904,247, and the balance of £2,333,940 was taken up by the Reserve Bank.

A conversion offer in respect of an internal 4-per-cent. loan totalling £8,931,480 maturing on 15th April, 1949, but in respect of which the Government had the option to repay on or after 15th April, 1946, was made in December, 1945. The new securities offered were 3-per-cent. stock issued at par and maturing on 15th April, 1960–63. Holders of the £2,426,365 of 4-per-cent. stock who did not accept the conversion offer were repaid in cash on 15th April, 1946.

A conversion offer was made in London in June, 1948, to holders of £16,000,000, sterling 4½-per-cent. inscribed stock maturing on 1st March, 1958, with the option of repayment at par on or after the 1st March, 1948. New stock at 3 per cent. maturing 1st September, 1966–68, was offered in exchange, while of a further amount of £3,225,465, 4½-per-cent. stock, £225,465 was repaid and the balance of £3,000,000 transferred to New Zealand domicile.

A £7,322,579 3½-per-cent. loan domiciled in London and maturing on 1st February, 1949–54, was dealt with in June, 1949, by conversion of £7,000,000 into 3-per-cent. stock maturing 1st June, 1973–77, and by repayment of the remaining £322,579 in cash.

In October, 1949, a conversion offer was made in London to holders of £6,000,000 of a total of £7,500,000 5-per-cent. inscribed stock maturing on 15th December, 1949. New stock at 3¼ per cent. maturing 15th December, 1963–66, was offered in exchange, while cash applications were used for the redemption of the remaining £1,500,000 of 5-per-cent. stock.

A conversion offer in June, 1949, in respect of three internal loans totalling £29,235,755 at par (2½ per cent, maturing 15th June, 1947–49, 2½ per cent. maturing 15th February, 1949–50, and 4 per cent. maturing 15th May, 1949–52) resulted in £15,111,380 being reinvested in either 3-per-cent. stock maturing 15th June, 1961–64, or 2½-per-cent. stock maturing 15th June, 1954–55, and repayment in cash of £14,124,375.

In addition to the above classes of conversion loans, during the period 1946–50 there were four “tap” issues at par as follows: In 1946, £18,319,590 of 3-per-cent. stock maturing 15th July, 1961–63 were issued; in 1947, £21,402,700 of 3-per-cent. maturing 15th July, 1962–64; in 1948, £24,918,600 of 3-per-cent. stock maturing 15th July, 1963–65; and in 1949–50, £19,288,825 of either 2½-per-cent. stock maturing 15th May, 1955–56, or 3-per-cent, stock maturing 15th May, 1964–66. A new loan, the 1950 National Development Loan, was initiated in May, 1950, the amount of £20,000,000 being oversubscribed by approximately £940,000. Stock was offered either at 3 per cent. repayable 15th August. 1959–61, issued at 99½ per cent., or at 2½ per cent. repayable 15th August, 1954, issued at par.

WAR LOANS.—A schedule showing the successive war loans during the period 1939–45 is given below. A more detailed exposition of these loans is available in the 1946 issue of the Official Year-Book.

Year and Month of Issue.Amount of Loan.Contribution in the Form of—Rate of Interest.Date of Maturity.Remarks.
 £ Per Cent.  
194010,000,000 (approx.)Stock1 Oct., 1953Compulsory. Non-interest bearing to 1 Oct., 1943.
Aug., 194110,000,000Stock (two classes)1 Aug., 1946Oversubscribed £200,000.
   31 Aug., 1951–54 
May, 194215,000,000Stock (two classes)15 Sept., 19471st Liberty Loan. Oversubscribed £2,500,000.
   315 Sept., 1952–55 
Oct., 194210,000,000Stock (two classes)15 May, 19482nd Liberty Loan. Oversubscribed £500,000.
   315 May, 1953–58 
June, 194335,000,000Stock (two classes)15 June, 1947–493rd Liberty Loan. Oversubscribed £4,275,000.
   315 Dec., 1953–56 
  Bonds3Five-year term 
  National war savings accounts3Two- or three-year term 
Aug.-Oct., 194440,000,000Stock (two classes)15 Feb., 1949–50Victory Loan. Oversubscribed £672,104.
   315 Feb., 1955–58 
  Bonds3Five-year term 
  National war savings accounts3Two-year term 
May-June, 194525,000,000Stock (two classes)15 Apr., 1950–51Victory Loan. Oversubscribed approx, £500,000.
   315 Apr., 1956–59 
  Bonds3Five-year term 
  National war savings accounts3Two-year term 

As stated earlier, the amount of debt outstanding at 31st March, 1950, in respect of the Second World War was £201,525,605, a decrease of £2,349,088 from the total at the end of the previous year. All of this debt is domiciled in New Zealand.

DOMICILE OF DEBT.—The table following shows, for each of the eleven years ending 31st March, 1950, the amount of New Zealand's public debt domiciled in London, Australia, and New Zealand. All amounts shown are inclusive of the debt due to the Imperial Government to which reference has been made elsewhere in this subsection.

At 31st March,Amount.Percentage of Total on New Zealand Currency basis.
London.Australia.New Zealand.London.Australia.New Zealand.
 £(Stg.)= £(N.Z.)£(N.Z.)£(N.Z.)Per Cent.Per Cent.Per Cent.
1940157,863,270197,329,088879,600164,164,66654.460.2445.30
1941158,371,589197,964,486879,600190,176,38650.890.2348.88
1942153,755,563192,194,454862,300230,779,87045.350.2054.45
1943158,274,298197,842,873862,300304,688,77439.300.1760.53
1944159,107,828198,884,784862,300366,746,93335.110.1564.74
1945159,282,383199,102,979861,300403,274,13333.010.1466.85
1946120,720,283150,900,354861,300472,749,93624.160.1475.70
1947120,720,283150,900,354861,300482,990,10723.770.1476.09
1948109,378,675136,723,343779,000494,111,97221.650.1278.23
1949106,153,209106,153,209628,226534,395,30516.550.1083.35
1950104,330,631104,330,631628,226565,112,48515.570.0984.34

During the period covered by the table the amount of the debt domiciled in London has decreased (on a New Zealand currency basis) by £92,998,457. Practically the whole of this decrease has occurred since 1945, the amount at 31st March of that year being £(N.Z.)199,102,979, as compared with £(N.Z.) 104,330,631 at 31st March, 1950. The amount domiciled in New Zealand, on the other hand, has risen during the ten years by £400,947,819.

MATURITY YEARS OF DEBT.—The maturity years of the debt outstanding at the 31st March, 1950, are shown in the following statement, which distinguishes between the various countries of domicile. All amounts shown may be regarded as being either in New Zealand pounds or in nominal amounts.

Loans maturing in Year ended 31st March,*Debt maturing in—Total.
London.Australia.New Zealand.
Public.Departmental.

* In respect of many of the loans the Government has the option to redeem the securities at an earlier date on giving notice.

† Interest-free loans are for various periods.

 £££££
Overdue  2,935 2,935
Treasury bills   70,000,00070,000,000
Interest free  1,600 1,600
19511,250,000628,226  1,878,226
1952  2,591,7857,457,40010,049,185
1954  8,486,0701,068,9259,554,995
1955  6,060,560362,3406,422,900
195612,000,000 18,611,6157,753,05538,364,670
1957  29,767,01011,393,83541,160,845
1958  21,677,405135,773,160157,450,565
1959  9,995,73568,835,37578,831,110
1960  7,022,96021,371,05028,394,010
19616,311,679 18,718,9302,356,78027,387,389
1962   23,000,00023,000,000
19647,339,656 23,095,7906,302,29036,737,736
1965  17,222,10010,770,95027,993,050
196617,238,187 6,387,06517,232,79540,858,047
19676,000,000 7,108,1704,684,80017,792,970
196916,000,000   16,000,000
19725,000,000   5,000,000
19787,000,000   7,000,000
Imperial Government advances on which interest payments have been suspended since 193126,191,109   26,191,109
Totals104,330,631628,226176,749,730388,362,755670,071,342

DEPARTMENTAL INVESTMENTS.—As shown in the preceding table, £388,362,755 of the public debt outstanding at 31st March, 1950, was held by various Government Departments and quasi-Government organizations. A summary of these investments is as follows:—

 £
Investments held by accounts within the Public Account27,532,995
New Zealand Broadcasting Service1,500,000
Marketing Department250,000
Government Life Insurance7, 388, 530
Government Superannuation Board5,611,170
Maori Trustee894,830
National Provident Fund620,000
Post Office136,668,000
Post Office: National Savings45,650,000
Public Trustee12,761,785
Reserve Bank91,045,325
State Advances Corporation1.002.320
State Fire Insurance Office— 
Accident Branch1.467.500
Fire Branch1,298,300
Dairy Industry Account14,200,000
Meat Industry Account27,500,000
Wool Disposal Account12,972.000
Totals£388,362,755

PRICES OF NEW ZEALAND STOCKS.—The following table gives the quotations in London for the principal new stocks (excluding accrued interest) in December of each of the years 1939–46 and at quarterly intervals from March, 1947, to March, 1950.

Date.3 Per Cent., 1952–55.3¼ Per Cent., 1962–65.3½ Per Cent., 1949–54.3½ Per Cent., 1960–64.5 Per Cent., 1949.5 Per Cent., 1956–71.
£s.d.£s.d.£s.d.£s.d. £s.d.£s.d.

* Redeemed.

1939—Dec. 78350   91100   1020010600
1940—Dec. 591100   9763   10500111150
1941—Dec. 494180   9963   105100113100
1942—Dec. 39150   96163   1030010813
1943—Dec. 29750   99163   10800114113
1944—Dec. 799150   10112610416310900116100
1945—Dec. 6991761021001011261031131072611750
1946—Dec. 9104126112176103391131131095012313
1947—Mar. 7104139112391021631121891087612376
  June 6104100110761028911213107126123100
  Sept. 5100189102189100189104891047611550
  Dec. 599891033910139106131055011613
1948—Mar. 210263104001011631062610550116100
  June 410176103189102391066310417611663
  Sept. 210215010400101163106261048911589
  Dec. 21021761041891016310613910316311689
1949—Mar. 31030010411310011310615010217611589
  June 210200103189*1060010115011413
  Sept. 281007699150   1020010016311126
  Dec. 2910110098150   100189*110163
1950—Mar. 21010098126   100176   10913

INTEREST.—Of the public debt outstanding at 31st March, 1932, approximately 30 per cent. only of the total bore interest at a rate of 4 per cent. or lower. As a result of conversion operations and of a general decline in interest-rates for new money, the amount of debt bearing interest at a rate of 4 per cent. or under at 31st March, 1950, was £636,999,073, or nearly 99 per cent. of the total debt exclusive of that portion on which interest payments have been suspended since 1931 by agreement with the Imperial Government, while £557,045,430, or approximately 86 per cent., did not exceed 3 per cent. Of the debt domiciled in New Zealand at 31st March, 1950, no less than 92 per cent. was at rates of 3 per cent. or under, the remainder (or 8 per cent.) being at rates which did not exceed 4 per cent. A classification of the public debt as at 31st March, 1950, according to the rates of interest payable and domicile is contained in the following table, the values being in terms of New Zealand currency.

Rate of Interest, Per Cent.Debt maturing in—Total.Gross Annual Interest Charge.
London.Australia.New Zealand.
 £££££
Overdue  2,9352,935 
Free  1,6001,600 
1  113,000,000113,000,0001,130,000
  148,389,280148,389,2803,709,732
335,000,000 260,654,550295,654,5508,869,636
23,238,187 20,433,30543,671,4921,419,323
13,661,335 9,156,67022,808,005798,280
4  13,474,14513,474,145538,966
55,000,000  5,000,000250,000
1,250,000628,226 1,878,226103,302
    Totals78,139,522628,226565,112,485643,880,23316,819,239
Imperial Government advances on which interest payments have been suspended26,191,109  26,191,109 
  Total debt104,330,631628,226565,112,485670,071,34216,819,239

The total amount of interest payable on the effective public debt—i.e., the whole of the public debt less those portions upon which interest payments have been suspended by agreement with the Imperial Government—as at 31st March, 1950, was £16,819,239, which gives an average rate of £2 12s. 3d. per cent.

The amount of interest and the average rate per cent. payable on the debt domiciled in the various markets were:—

 £Average Rate.
  £s.d.
London2,601,788367
Australia34,5525100
New Zealand14,182,8992103

The total of interest payments from the Consolidated Fund during the year ended 31st March, 1950, was £16,736,819. Of this amount, £2,680,989 was paid in London, and £93,808 in New Zealand on account of debt domiciled in London. An amount of £(N.Z.)34,552 was paid in Australia in respect of debt domiciled in that country, while £13,927,470 was paid in New Zealand in respect of internal debt.

The total amount of interest credited to the Consolidated Fund on account of capital liability of various enterprises during 1949–50 was £4,057,078, the principal contributing accounts being Post and Telegraph, £704,000; Electric Supply, £1,412,977; Housing Account, £822,377; Housing Construction, £109,951; Land Settlement Account, £700,000; and under section 31 (3) of Land Act, 1948, £207,627. Interest is also received from the investment of other public moneys, the total under this heading being £1,829,276, including £1,252,473 from the State Advances Corporation, £308,711 from the Public Account Cash Balance Investments Account, and £56,445 from the Deposits Account. The total interest receipts of the Consolidated Fund were thus £5,886,354, leaving the net interest charges for the year £10,850,465, as compared with £11,404,171 in 1948–49.

Certain changes in practice in the treatment of interest receipts and payments of the Consolidated Fund have to some extent invalidated a comparison of interest charges for recent years. Prior to the financial year 1943–44 the premium, or cost of exchange, on interest-moneys remitted abroad was not charged against interest, but was treated as a separate item. Also certain interest recoveries prior to 1944–45 were treated as credits in reduction of expenditure, whereas now all interest credited to the Fund is treated as receipts. In the following table which covers the last eleven financial years, the cost of exchange on interest paid in London, has been added to the gross interest payments for the years prior to 1943–44 in order to bring them into line with subsequent years.

Year Ended 31st March,Gross Payments.Receipts.Credits in Reduction.Gross Payments, less receipts and credits.

* Included with receipts.

 £(N.Z.)£(N.Z.)£(N.Z.)£(N.Z.)
194012,296,4022,908,7462,932,3596,455,297
194112,279,0353,284,8462,798,4156,195,774
194212,833,8063,466,3642,781,0746,586,368
194313,834,8104,133,2772,844,0726,857,461
194415,613,2704,281,9223,250,6788,080,670
194517,323,3465,363,807*11,959,539
194618,584,4345,857,264*12,727,170
194717,558,8764,714,100*12,844,776
194817,825,0525,002,728*12,822,324
194916,619,9605,215,789*11,404,171
195016,736,8195,886,354*10,850,465

Administration and management charges in respect of debt services amounted to £355,188 in 1949–50, as compared with £225,961 in 1948–49.

AMORTIZATION OF DEBT: Public Debt Repayment.—With certain exceptions, the repayment of the public debt is now subject to the provisions of the New Zealand Loans Amendment Act, 1947, which repealed the Repayment of the Public Debt Act, 1925, and certain sections of various Finance Acts, For this purpose there is issued annually out of the Consolidated Fund a sum equal to ½ per cent. of the total amount of the defined portion of the public debt outstanding at the end of the preceding financial year, plus 4 per cent. of the total amount previously repaid or redeemed under the provisions of the Act. The bulk of the savings in interest on debt paid off is thus applied to further repayments of debt.

The annual contribution from the Consolidated Fund, formerly payable to the Public Debt Repayment Account and since the abolition of the latter as from 1st April, 1947, to the Loans Redemption Account, is utilized to redeem such securities as the Public Debt Commission determines, which are a charge upon the public revenues of New Zealand and which are included in the defined portion of the public debt. All ether moneys raised or available for the purpose of repayment of any loan forming a charge on public revenues are similarly paid into the Loans Redemption Account and utilized for the redemption of such securities charged upon the public revenues as the Minister of Finance from time to time determines.

Transactions involving merely the exchange of one class of securities for another of the same rate of interest and term, or where the only variation is an extension of the term by not more than two years, are no longer recorded in the Loans Redemption Account.

Under the Repayment of the Public Debt Act, 1925, a capital fund was created termed “The Public Debt Redemption Fund.” Power was given by the New Zealand Loans Amendment Act, 1947, for the Public Debt Commission, constituted under this Act, to use the capital moneys in the Public Debt Redemption Fund for the redemption of public debt. This power was exercised during the 1947–48 financial year, and the result was the redemption of public debt by £11,287,988 and the extinguishment of the fund.

Repayment of the public debt under the provisions of the New Zealand Loans Amendment Act, 1947, during the year ended 31st March, 1950, totalled £7,302,975, including £4,723,041 utilized from the annual contribution from the Consolidated Fund to the Loans Redemption Account, £764,024 from the balance of amortization contributions unspent at the beginning of the year, and the remaining £1,815,910 from other moneys in the Account.

The repayment scheme provided for under the New Zealand Loans Amendment Act, 1947, does not apply to the whole of the public debt, revenue bills and certain classes of the debt for which there are special amortization provisions being excluded. The latter include funded debt, loans raised for State Advances, and loans raised in respect of electric supply. Of the total gross indebtedness (inclusive of funded debt) of £670,071,342 at the 31st March, 1950, £567,995,360 was subject to the repayment provisions of the Act.

Amounts devoted to the redemption of the public debt during each of the last three years are set out below, together with a brief statement of the class of debt affected.

Year Ended 31st March,Amounts Utilized fur Redemption.Class of Debt Affected by Redemptions.
Under Authority of Section 12(b) of Loans Amendment Act, 1947.Under Authority of Oilier Provisions of Loans Amendment Act, 1947.Total Amount Utilized.
Item.Amount.
 £££ £
19484,456,28024,629,87629,086,156War expenses debt10,154,247
    Other debt18,931,909
    War expenses debt7,071,523
    Other debt5,121,469
19493,899,77035,788,66539,688,435Exchange Adjustment— 
      United Kingdom debt27,344,669
      Australian debt150,774
19505,487,0651,815,9107,302,975War expenses debt1,772,795
    War loans, 1914–183,714,270
    Other debt1,815,910

The following table shows the amounts available for redemption for each of the last three years under the repayment scheme provided for by the New Zealand Loans Amendment Act, 1947, the amounts utilized under section 12 (b) of that Act, and the nominal value of securities redeemed and cancelled to date under the provisions of the former Repayment of the Public Debt Act, 1925, and the present authority, the New Zealand Loans Amendment Act, 1947.

Year Ended 31st March,Balance of Amortization Contributions Unspent at Beginning of Year.Transfers from Consolidated Fund.Utilized to Redeem and Cancel Securities.Nominal Value of Securities Redeemed and Cancelled to Date Under the Provisions of the 1925 and 1947 Acts.
One-half per Cent. of Defined Portion of Public Debt Outstanding at Beginning of Year.Four per. Cent. of Total Amount of Defined. Portion of Public Debt Redeemed or Repaid to Beginning of Year.Total.
 ££££££
1948229,6952,713,3961,663,8274,377,2234,456,28046,051,960
1949150,6382,671,0781,842,0784,513,1563,899,77049,951,730
1950764,0242,724,9721,998,0694,723,0415,487,06555,438,795

Amortization of Funded Debt.—At the 31st March, 1922, £27,532,164 of New Zealand's public debt was owing to the Imperial Government, all but £1,191,919 of this being on account of war expenditure. Arrangements were made with the Imperial Government in 1922 for the funding of this debt.

The funding was carried out on an annuity basis of 6 per cent., the total payment each year (payable half-yearly at 1st June and 1st December) being £1,651,930. Interest was at the rate of £4 19s. 5.88d. per cent., the balance of the 6 per cent. going to reduction of the debt.

Under the agreement the original amount of £27,532,164 would have been automatically discharged from the public debt by the end of the financial year 1958–59. The Imperial Government, however, following the Hoover proposals regarding war debts, voluntarily suspended New Zealand's obligations in respect of the funded-debt payments due in and since December, 1931. On the other hand, a provision that any part of the funded debt may be redeemed at any time was taken advantage of in 1924, when £200,000 was paid off the Naval Defence Loan.

At the date of suspension, total payments amounted to £15,067,370, of which £11,635,406 represented interest payments and £3,431,964 (including the £200,000 additional paid off Naval Defence Loan) reduction of principal, leaving the outstanding balance of the funded debt at £24,100,200 (sterling).

The provisions of the New Zealand Loans Amendment Act, 1947, do not apply to the funded debt. This amount, together with £2,090,909 sterling, representing debt raised for State Advances purposes for both of which interest payments have been suspended by agreement with the Imperial Government since 1931, is, however, included in all tables dealing with public debt given in this section.

Sinking Funds.—Special sinking funds exist in respect of certain classes of debts not covered by the New Zealand Loans Amendment Act, 1947.

NET INDEBTEDNESS.—While the sinking funds were annually increasing it was customary to regard the net-indebtedness figures as giving the best comparison of indebtedness between one year and another. The initiation of the present system of amortization, however, destroyed the comparison on this basis, and the gross figures (as shown at the beginning of this subsection) now afford a better and more comparable index. The figures of net indebtedness for the years 1940–50, both in nominal amounts and in New Zealand currency, after making an allowance for exchange on the debt domiciled in London, are as follows:—

As at 31st March,Amount.Per Head of Population.
Nominal Amount
 ££s.d.
1940322,146,63319666
1941348,021,3622121311
1942384,555,798235511
1943463,055,985283710
1944525,542,1853191310
1945560,188,42833390
1946589,885,5583351010
1947602,322,279335179
1948600,055,81032729
1949636,877,008339196
1950665,928,628347181
New Zealand Currency
 ££s.d.
1940361,612,54122076
1941387,614,2592361711
1942422,994,689258164
1943502,624,560307119
1944565,319,141345158
1945600,009,02435731
1946620,065,629352142
1947632,502,349352144
1948627,400,479342010
1949636,877,008339196
1950665,928,628347181

In general the net indebtedness shown in the foregoing table is merely the balance left after deducting from the amount of debentures and stock in circulation the accrued sinking funds, and the net balances of the Loans Redemption Account and also of the Public Debt Repayment Account until its incorporation in the Loans Redemption Account as from 1st April, 1947. No allowance is made for the fact that a portion of the debt is actually held by the Government itself. In the course of the year's financial transactions, securities are bought and sold by Treasury accounts, and the investments held as at the 31st March in each year, while forming part of the debt, do not represent amounts due directly or indirectly to the public. Public debt held by Treasury accounts as at the 31st March of the last five years has been: 1946, £21,059,265; 1947, £25,470,995; 1948, £26,552,345; 1949, £29,807,345; and 1950, £27,532,995.

In addition to the above, Government investments in. corporations, &c., hold at the 31st March, 1950 (shown in the return required by the Finance Act, 1947, and published in parliamentary paper B–1 [Pt. I] are given in the following table:—

Investment.Amount at 31st March, 1950.
 £
Bank of New Zealand12,018,296
British Commonwealth Pacific Airlines, Ltd.541,935
British Petroleum Co. of New Zealand, Ltd.1,275,000
British Phosphate Commission483,900
Christmas Island Phosphate Commission1,375,000
Dominion Salt, Ltd.50,000
East Coast Farmers' Fertilizer Co., Ltd.7,500
New Zealand National Airways1,500,000
New Zealand Woolpack and Textiles, Ltd.150,000
Renown Collieries, Ltd.170,873
Reserve Bank of New Zealand1,500,000
State Advances Corporation37,798,014
Tasman Empire Airways, Ltd.375,000
Taupiri Coal Mines, Ltd.820,798
Kamo Collieries, Ltd.104,000
Linen Flax Corporation300,000
Linton Coal Co., Ltd.159,216
    Total£58,629,532

GENERAL AND LOCAL GOVERNMENT DEBT.—The statistics given throughout this subsection refer to the indebtedness of the General Government only, and do not include the debt of local-governing authorities, which is dealt with in the section of this volume relating to local government.

Local-governing authorities had at the 31st March, 1949, a gross indebtedness equivalent to £(N.Z.)£61,750,185 and if this amount be added to the gross debt of the General Government at 31st March, 1949 £(N.Z.)641,176,740, the aggregate becomes £(N.Z.)£702,926,925. This latter total is inclusive of £(N.Z.)26,191,109 debt to the Imperial Government funded in terms of the Finance Act, 1922. Allowing for duplication on account of outstanding loans to local authorities from the State Advances Corporation and the Main Highways Board, and inscribed debt under the Government Loans to Local Bodies Act, the total is reduced to approximately £(N.Z.)696,795,951, which represents a rate of approximately £(N.Z.)372 per head of population.

The figures relating to local authorities' indebtedness in the foregoing paragraph are inclusive of Hospital Boards, and to this extent differ from those given in the section on local government. Hospital Board gross indebtedness at 31st March, 1949, totalled £5,285,579.

25 D—STATE ADVANCES

As early as 1392 the Government commenced the purchase of lands for cutting up for sale or lease to private individuals, and two years later the passing of the Advances to Settlers Act, 1894, marked the inauguration of a series of schemes for lending money to settlers, workers, &c., for the purchase of homes, the improvement of farms, and the development of resources and of industries. The schemes varied considerably in detail, but all lay in one of two main classes—those in which the money was advanced on security, and those in which the expenditure was incurred by the Government itself in the first place and recouped from sales or leases. Advances to settlers, workers, and ex-servicemen are the principal examples of the former class, and the purchase of land for settlement (including the settlement of ex-servicemen) is the principal example of the latter.

STATE ADVANCES CORPORATION.—The Mortgage Corporation of New Zealand Act, 1934–35, authorized the creation of a Corporation under a Board composed of directors appointed partly by the State and partly by the shareholders of the Corporation.

By the State Advances Corporation Act, 1936, the private capital invested in the Mortgage Corporation was cancelled, provision being made for repayment to shareholders in respect of shares held in the Corporation. The capital of the Corporation was maintained at £1,000,000, however, by an investment from the Consolidated Fund, while all securities issued by the Corporation carry a State guarantee. The management of the Corporation is vested in a Board of Directors consisting of a managing director appointed by the Governor-General in Council, one or more other directors similarly appointed, and an ex officio member (necessarily a Treasury official) appointed by the Minister of Finance. In the exercise of its powers, the Board is enjoined to have regard to any representations that may be made by the Minister of Finance. Every direction in writing given by the Minister is binding on the Board.

The change in administration and the institution of a State guarantee on securities issued by the Corporation represented the major alterations to the preexisting law. All the functions of the Mortgage Corporation were transferred to the new body, while certain extensions of function were made—e.g., the administration of the Housing Act, 1919. Following is a résumé of the principal functions of the State Advances Corporation:—

The Corporation administers the State Advances, &c., loans previously transferred to the pre-existing Mortgage Corporation, viz.—

  1. Mortgages in respect of advances to settlers or workers under the State Advances Act, 1913:

  2. Mortgages in respect of advances under the Rural Advances Act, 1926:

  3. Debentures or other securities vested in the State Advances Superintendent in respect of advances to local authorities tinder Part III of the Local Bodies' Loans Act, 1926, or corresponding provisions of former Acts:

  4. Crown mortgages in respect of advances to ex-servicemen of the 1914–1918 war under the former Discharged Soldiers Settlement Act, 1915, or any amendments thereof (including advances under section 11 of the Finance Act, 1933), now under the Land Act, 1948:

In order to provide loan finance the Corporation may issue bonds, stock, or other securities which are State guaranteed.

The Corporation may advance on the security of a first mortgage on land, and normally such advances do not exceed two-thirds of the value of the security, but there is provision for the extension of that margin in certain cases, including the rehabilitation loans referred to later, and for such purposes as the erection of new houses. No loan-limit is laid down for cases where the amount of the advance does not exceed two-thirds of the value of the security, but loans over £2,500 are not usually granted.

In cases where the normal margin is exceeded with the approval of the Government, the Minister of Finance guarantees the Corporation against any loss attributable to the granting of advances in excess of two-thirds of the value of the security.

For the purpose of erecting new homes, up to 90 per cent. of the security may be advanced, and the limit for such cases was recently increased to £2,000, including any suspensory loan that may be granted. A suspensory loan, is in effect, a conditional subsidy towards the cost of building a home for personal occupation. These loans are repayable should the house be sold or otherwise disposed of within seven years; otherwise they are free of interest and will be converted into grants when the seven years have expired. They are limited to 10 per cent. of the cost, with a maximum of £200. If the cost is greater than the loan limit of £2,000 the amount of the suspensory loan is reduced by £1 for every £2 by which the cost exceeds £2,000, with no suspensory loan if the amount should fall below £50. As with the increased loan limit, the suspensory loan scheme applies to houses commenced on or after 1st December, 1949.

The large majority of the loans granted by the Board are secured by table mortgage for terms varying from ten to forty-five years, but the Board has power to make advances on flat mortgage for a period of five years, though renewals of such mortgages cannot be extended for longer than one further period of five years. There is provision for varying the scheme of table mortgages in special circumstances, part of the mortgage (at least one-half) to be in the form of a table mortgage and the remainder a flat mortgage falling due on the date of the last instalment of the table mortgage.

A mortgagor may be required to effect a policy of life insurance as additional security, such policy to be assigned to the Corporation. A mortgagor may not give any subsequent mortgage or any other charge over land subject to any mortgage to the Corporation except with the written authority of the Board.

Each mortgagor is required to pay an amount equal to 2 per cent. of any mortgage granted by the Corporation as a contribution to the General Reserve Fund. These amounts, which may be borrowed as an addition to the principal sum if so desired, together with the surplus profits referred to below, and certain payments on account of mortgages transferred to the Corporation, form the General Reserve Fund.

The Board is required from time to time to fix the rates of interest to be paid under mortgages to the Corporation, so as to make adequate provision to cover the costs of administration and for all other matters incidental to the proper functioning of the Corporation. After such provision as the Minister of Finance thinks proper has been made for the depreciation of securities or other assets, and for such other matters as in his opinion are necessary for the efficient conduct of the business of the Corporation, the surplus for each financial year is to be paid into the Public Account unless the Minister, in his discretion, authorizes the Board to credit it, in whole or in part, to the General Reserve Fund of the Corporation.

In addition to its primary function of providing cheap long-term finance in the form of first mortgage on property, the Corporation has been authorized to make loans to local authorities out of the Housing Account for the purpose of erecting workers' dwellings or farm dwellings, and also advances for the development of existing industries or the establishment of new industries.

The Corporation is also authorized to act as agent for other Departments of State, more particularly in respect of the inspection and supervision of properties and the collection of moneys payable to such Departments.

As stated earlier, the mortgages securing outstanding advances to ex-servicemen of the 1914–18 war were transferred to the Corporation some years ago and now form part of its general investments.

The Corporation acts as the agent of the Rehabilitation Board in obtaining valuations and preparing reports in respect of farm and residential property for submission to the Rehabilitation Loans Committee (or to District Loans Committees acting under delegated authority from the Rehabilitation Loans Committee), which has been appointed to consider and approve of loan applications lodged by ex-servicemen who are eligible for assistance under the Rehabilitation Act, 1941. The administration of such loans, when granted, is the subsequent responsibility of the Corporation. The classes of loans granted and the terms and conditions applicable thereto are set out in Section 45, Rehabilitation. The securities taken in respect of rehabilitation loans for farms or houses are similar to mortgages taken for the purpose of securing advances made under the Corporation's ordinary lending activities, except that the Reserve Fund contribution on advances within the respective loan-limits, is paid by the Consolidated Fund, which also meets interest concessions allowed in respect of these rehabilitation loans. These payments to the corporation were formerly met from the War Expenses Account which was abolished as from 1st April, 1950. In respect of other types of rehabilitation loans such as for businesses and the purchase of furniture and tools of trade, the necessary loan finance was also provided from the War Expenses Account. When this account was closed a sum of £500,000 was transferred to the State Advances Corporation for the purpose of granting future loans of this nature. These loans are administered by the Corporation, on an agency basis. The form of security taken and the terms as to repayment vary according to the type of loan and the circumstances of the borrower.

By Order in Council dated the 5th March, 1937, the Board of Management of the State Advances Corporation was constituted the Rural Intermediate Credit Board established under the Rural Intermediate Credit Act, 1927, superseding the Public Trust Office, which had administered the Board's business since the inception of the scheme in 1927. This change in control took effect as from 1st July, 1937. In terms of the Rural Intermediate Credit Amendment Act, 1946, the business of the Board was absorbed by the Corporation as from 1st October, 1946 (see p. 517).

Reference to the Housing Act, 1919, and the Government's housing scheme together with particulars of the numbers of houses erected, financial operations, &c., are contained in Section 23 (Building, Construction, and Housing).

Summary of Activities.—As already indicated, the Corporation, in addition to its normal lending functions, administers a number of other State activities, and a general summary of the business under administration as at 31st March, 1950, is as follows:—

 Number of Accounts.Principal Investment.
Mortgage Investments— £
  Urban45,21938,401,034
  Rural21,36836,640,712
Loans to local authorities9974,362,537
Housing Account—  
  Dwellings let 34,267
  Shops, halls, and communal garages21452,345,472
  Dwellings sold15584,960
  Loans to local authorities102993,761
  Loans to employers1858,421
Rural Housing Act: Loans to local authorities42127,959
Advances under Rehabilitation Act, 1941—  
  Furniture, tools of trade, business, &c.37,1363,541,150
  Interest-free supplementary loans 1,935,177
Other principal agencies—  
  Agriculture Emergency Powers Act, 1941718,628
  Farmers' Loans Emergency Regulations 19401539,973
  Public Works Department hutments rented to farmers3510,463
  Rural Housing Scheme, 1944353,623
  Timber workers' housing—  
    Levies accounts 619
    Rental accounts103367,788
  Miscellaneous rentals510 
    Totals140,842138,931,658

Farm loans and residential loans to ex-servicemen under the Rehabilitation Act, 1941, are included with “Mortgage Investments” above. Particulars of all rehabilitation loan authorizations will be found in Section 45, Rehabilitation.

Financial.—Balance-sheet figures show that at 31st March, 1950, the authorized capital was £1,000,000, while stock and debentures outstanding were £70,322,590, an increase of £6,000,000 in the ease of the latter compared with 31st March, 1949.

The General Reserve Fund, at 31st March, 1950, amounted to £5,339,301, and, in addition, there were specific reserves amounting to £2,766,580, making a total of £8,105,881, as compared with £7,897,284 at 31st March, 1949.

Mortgages and accrued interest at 31st March, 1950, totalled £74,862,169, an increase of £6,025,490 as compared with 31st March, 1949, while Government and local-authority securities and accrued interest at £5,413,438 were greater by £213,947.

The disposition and appropriation of profits in respect of operations during each of the last three financial years are given in the following table.

1947–48.1948–49.1949–50.
 £££
Gross income2,584,6642,872,8753,137,457
  Less interest on General Reserve Fund investments173,726182,796180,285
    Gross income (mortgage and temporary investments)2,410,9382,690,0792,957,172
    Interest on stock and debentures1,839,5462,024,6502,208,455
      Gross profit571,392665,429748,717
Management expenses308,318321,058323,139
Administration of rehabilitation advances87,73590,090102,964
Earthquake insurance9,98612,42315,894
Reserve for losses20,03821,32520,000
Transfer, General Reserve Fund34,38142,498 
  Net profit110,934178,035286,720
    Less reserve for taxes95,000138,000236,300
      Surplus payable to Crown15,93440,03550,420

The gross income of £3,137,457 in 1949–50 included £2,414,327 interest on mortgages and current accounts, £180,560 interest on Government and local-authority securities and temporary investments, and £541,897 recovery from the War Expenses Account on account of interest concessions to ex-servicemen on rehabilitation advances. Corresponding figures for 1948–49 were £2,226,023, £177,769, and £468,530 respectively.

New Business.—A summary of loan operations (new business) for the last two financial years is given in the following table.

Loans Authorized.1918–49.1949–50.
Number.Value.Number.Value.

* Excludes the number of Supplementary loans.

Urban securities— £ £
  Erection of dwellings2,5993,468,8682,2023,023,417
  Refinance and other purposes2,9912,781,5152,8862,732,007
  Supplementary(2,536)391,971(1,918)265,270
      Total urban5,590*6,642,3545,088*6,020,694
Rural securities—    
  Refinance and other purposes1,0314,563,1501,1175,219,673
  Supplementary(14)4,490(5)1,490
Loans to industry (under section 29)7418,00081,034,090
Local authorities311,011,52328376,452
      Grand totals6,659*12,639,5176,241*12,652,399

The above figures include rehabilitation loans in respect of farms and houses. Other rehabilitation loans granted by the Rehabilitation Loans Committee and administered by the Corporation were as follows.

Loans Authorized.Year Ending 31st March, 1949.Year Ending 31st March, 1950.Total to 31st March, 1950.
No.Value.No.Value.No.Value.
  £ £ £
Business1,373933,1511,414910,0918,7275,493,961
Furniture8,039746,1017,283678,29243,7514,037,753
Tools of trade1344,848621,8381,38445,492
Miscellaneous457,84910917,43446693,262
    Totals9,5911,691,9488,8681,607,65554,3289,670,468

A statement is given below of the aggregate number and amount of loans approved by the Board of Management since the Corporation commenced business in 1935.

 Number.£
Farm (including Supplementary)11,99537,701,000
Residential (including Supplementary)48,00850,297,000
Local authorities5988,382,708
Industries371,644,105
    Totals60,63898,024,813

The lending rate of the Corporation was maintained during 1947–48 at 4⅛ per cent. Rehabilitation loans to ex-servicemen for houses and farms were, however, at 3 per cent., reducible to 2 per cent. for the first year, and for business loans at 4 per cent., reducible to 2 per cent. for the first year. The amount involved in interest concessions of this kind is now recouped from the Consolidated Fund. Loans granted under the Corporation's normal lending business are in general secured by table mortgages for varying periods. The following summary shows the annual cost—i.e., interest and principal payments—per £100 borrowed on table mortgage at 4⅛ per cent. for the various periods.

Term.Annual Amount payable.
 £s.d.
Ten years1262
Fifteen years902
Twenty years7710
Twenty-five years690
Thirty years51610
Thirty-five years586
Forty years526
Forty-five years4189

Special plans prepared by leading architects are available in book form, and assistance in calling tenders and in the erection of the houses is available from the Corporation's expert officers.

RURAL INTERMEDIATE CREDIT.—The Rural Intermediate Credit Board, appointed in terms of the Rural Intermediate Credit Act, 1927, provided a source from which farmers could obtain loan finance on favourable terms for such purposes as the purchase of stock and plant and farm improvements.

Pursuant to the provisions of Part VI of the State Advances Corporation Act, 1936, the former Rural Intermediate Credit Board went out of office on 1st July, 1937, and was replaced by the Board of Management of the State Advances Corporation, whose members became the Rural Intermediate Credit Board.

In terms of the Rural Intermediate Credit Amendment Act, 1946, the business of the Rural Intermediate Credit Board was, as from 1st October, 1946, absorbed by the State Advances Corporation, the Board being abolished as from that date.

Under the Act farmers may obtain assistance in the following manner:—

  1. By borrowing through co-operative rural intermediate credit associations whose formation (with not less than twenty members and with certain defined objects) is provided for by the Act. The application for the loan is received and considered by the association concerned, which, on approving it, applies to the Corporation for its confirmation and for an advance to cover the loan. These loans are repayable on demand, but it has been the policy to arrange for the borrower to repay the amounts advanced in five equal yearly instalments. Extensions beyond that period may be approved in suitable cases. An association may, with the approval of the Corporation, arrange with a bank or other approved financial institution for a loan in cases where the term is not more than six months.

  2. Persons engaged in farming on their own account, trustees, executors, or administrators carrying on farming operations, may obtain loans direct from the Corporation the conditions being similar to (a) above.

During the twenty-three years from the inception of the Rural Intermediate Credit system up to 31st March, 1950, advances exceeding £2,478,134 have been made.

At 28th February, 1950 there were ten active co-operative rural intermediate credit associations in operation. The loans authorized through this channel during the year 1949–50 amounted to £37,272, and there were 238 loans current at the end of the year for an aggregate amount of £44,311.

Loans granted direct by the Corporation in 1949–50 totalled £105,362, as compared with £115,840 in the previous year.

The interest fixed for advances other than to co-operative rural intermediate credit associations is now 5 per cent. per annum, except in the case of ex-servicemen eligible for rehabilitation assistance, where the interest rate is 4 per cent. per annum (rebated to 2 per cent. for the first year provided the loan conditions are fulfilled). In the case of loans to co-operative rural intermediate credit associations the rate charged is 4 per cent., so that associations may be in a position to make advances to their members at 5 per cent.

SALE OF STATE HOUSES.—In conformity with the Government's policy of encouraging private home ownership, State house tenants are being given an opportunity to buy the houses they occupy.

In the case of tenants occupying State rental houses on or before 31st July, 1950, the main sale terms are—

  1. A minimum deposit of 5 per cent. of the sale price.

  2. A suspensory loan assessed at 10 per cent. of the sale price, with a maximum of £200.

  3. A repayment period up to forty years for the balance of the purchase-money, together with interest, on an instalment-table basis.

  4. An interest charge of 4⅛ per cent., reduced to 3 per cent. while the conditions of sale are complied with.

  5. Discount of 5 per cent. for payments of purchase-money in excess of the required instalments of sale, or in excess of the minimum deposit.

  6. If the purchaser wishes to resell the State house within seven years it must first be offered for sale back to the Crown.

The purchase terms available for new State houses occupied since 1st August, 1950, are similar to the loan terms for persons erecting new houses (see pp. 513–514). They include:—

  1. Suspensory loans.

  2. A minimum deposit of 10 per cent. of the purchase-price or the balance of the purchase-money above £2,000 (including any suspensory loan).

  3. The balance of the purchase-money, together with interest, payable over a period of years on an instalment table basis.

  4. Interest at 4⅛ per cent.

  5. Provision for the property to be offered for sale to the Crown in the event of the purchaser wishing to resell within seven years.

Chapter 26. SECTION 26—SOCIAL SECURITY, PENSIONS, SUPERANNUATION, ETC.

SOCIAL SECURITY.—The Social Security Act, 1938, which came into operation on 1st April, 1939, may be said to have as its principal aim the provision for payment of superannuation and other benefits designed to safeguard the people of New Zealand from disabilities arising from ago, invalidity, widowhood, orphanhood, unemployment, sickness, or other exceptional conditions. Its two main objectives were:—

  1. To substitute for the previous system of non-contributory civil pensions a system of monetary benefits on a contributory basis:

  2. The inauguration of a system of medical and hospital benefits and of other related benefits.

The various classes of pensions, &c., which were superseded by monetary benefits of similar application were old-age pensions, widows' pensions, Maori War pensions, miners' pensions, invalidity pensions, and family allowances, while the unemployment benefit replaced the system of sustenance payments previously in force. A brief history of the introduction of the principal classes of pensions superseded by the social security scheme, and of the former Pensions Department which administered them, is given on pages 451–452 of the 1947–49 issue of the Year-Book. In addition, four new classes of monetary benefits were inaugurated—the orphans' benefit, the sickness benefit, the emergency benefit (for cases of hardship), and the universal superannuation benefit.

The Social Security Amendment Act, 1945, introduced a further important addition to the social legislation of New Zealand. It established the principle of universal family benefits, and from 1st April, 1946, each mother receives a benefit in respect of each of her dependent children irrespective of the family income or property.

A further development in 1948 occurred with the passing of legislation providing for reciprocity of social security benefits with Australia, and reciprocity in relation to family benefits with Great Britain and Northern Ireland. The respective Acts were entitled the Social Security (Reciprocity with Australia) Act, 1948, the Family Benefits (Reciprocity with Great Britain) Act, 1948, and the Family Benefits (Reciprocity with Northern Ireland) Act, 1948.

The first mentioned of these three Acts repealed the Age Benefits and Invalids' Benefits (Reciprocity with Australia) Act, 1943, and came into force on the 1st July, 1949. In the 1948 Act the classes of benefit were extended and now cover the following: age-pensions and age-benefits, invalid pensions (including wives' and childrens' allowances) and invalids' benefits, widows' pensions and widows' benefits, child endowment and family benefits, unemployment benefits, and sickness benefits.

Administration.—The Social Security Act, 1938, established a Department of State entitled the Social Security Department, under the control of a Commission consisting of not more than three members. The Department administers, under the direction of the Minister of Social Security, Part II of the Act dealing with those monetary benefits to which reference has been made, while Part III of the Act dealing with medical, hospital, and other related benefits, is administered by the Health Department under the direction of the Minister of Health. Provision was made in the Social Security Amendment Act, 1947, for the Social Security Commission, with the written consent of the Minister of Social Security, to delegate to any Registrar or other officer of the Department any of its powers under Part II of the principal Act.

The Act states that the Social Security Department may be divided into two or more divisions, and two have been created each under the control of a Director, one dealing with unemployment and sickness benefits, and the second with all other monetary benefits. The War Pensions Act, 1943 (which consolidated and amended the previously existing legislation on the subject), and the War Pensions and Allowances (Mercantile Marine) Act, 1940, are also administered by the Social Security Department, one of whoso directors is also designated Secretary for War Pensions. It should be noted, however, that, unlike the benefits under the Social Security Act, which are paid from the Social Security Fund (referred to later), war pensions are paid through the Consolidated Fund from general taxation.

Financial Provisions.—Finance to enable the provisions of the Act to be carried out is provided for by the establishment within the Public Account of the Social Security Fund. The principal revenue of the Fund is derived from a charge on salaries, wages, and other income, including the income of companies, but the Act also makes provision for the payment to the Fund of such other moneys as may be appropriated by Parliament from time to time, and a substantial amount has been received from the Consolidated Fund each year.

The social security charge, which had been at the rate of 1d. for every 1s. 8d. or part thereof of income since the inception of the scheme, has now been increased to 1d. for every 13⅓d. or part thereof—i.e., 1s. 6d. in the £1. The increase, in the case of salaries and wages, became effective from and including 13th May, 1946, while “other” income received during the year ended 31st March, 1946, was subject to the increased rate.

Prior to 1st April, 1946, every person of the age of sixteen years and over was required to register under the Act and to pay a registration fee. The fee payable by-females and by males between sixteen and twenty years of age was 5s. per annum, and by males over twenty years of age 5s. per quarter. This registration fee was abolished as from the date mentioned.

Part IV of the Social Security Act provides that the assessment, collection, and recovery of the social security contribution shall be administered as if it were income-tax, and that the Commissioner and Deputy Commissioner of Taxes and all officers appointed for the purposes of the Land and Income Tax Act, 1926, shall have in respect of the social security contribution, the same powers as they have in respect of income-tax, and all provisions of that Act shall apply with respect to the social security contribution in the same manner in all respects as with income-tax.

The Finance (No. 2) Act, 1948, amended the principal Act by providing that the social security charge on income other than salary or wages shall be payable half-yearly on the 1st July and the 1st November in the year following the financial year in which that income was derived. This provision was to apply to the charge on income derived for the year ending on the 31st March, 1949, or for any subsequent year.

The revenue of the fund for the financial years 1945–46 to 1949–50 was made up as follows:—

1945–46.1946–47.1947–48.1948–49.1949–50.
 £££££
Registration fees585,71315,287   
Charge on salaries and wages9,161,21813,519,80016,105,49116,744,52918,766,780
Charge on company in-come1,948,6848,864,08410,071,14312,633,85612,935,790
Charge on other income3,447,558
Grants from Consolidated Fund (Social Security Act)7,000,00018,000,00016,000,00015,000,00012,000,000
Other receipts143,019120,99397,43458,65170,603
    Total revenue22,286,19240,520,16442,274,06844,437,03643,773,173

Payments from the fund during the year ended 31st March, 1950 (with 1948–49 figures in parentheses) totalled £46,360,426 (£42,997,637), of which monetary benefits accounted for £36,826,721 (£34,140,246), medical, &c., benefits for £8,461,109 (£7,875,448), emergency benefits £280,155 (£251,409), administration expenses £783,822 (£729,259), and other payments £8,619 (£675). Amounts received by way of recoveries of maintenance-moneys from husbands who have deserted their wives have been offset against the sums granted in the form of widows' benefits to such wives, and the net figures only included. Other payments include the sum of £1,715 on account of reciprocal payments of social security benefits to Australia. Details of the various benefits in force and the amounts paid in respect thereof are given later in this section.

Monetary Benefits.—A brief description of the main provisions relating to the various monetary benefits under Part If of the Act is now given. The rates prescribed for several of the benefits under the principal Act were increased by way of bonus to the extent of 5 per cent. of the maximum rate payable in each case, as from 1st May, 1942. The Social Security Amendment Act, 1943, however, superseded these bonuses with permanent increases as from 1st July, 1943, and further increases were granted in most benefits as from 1st October, 1945. The Social Security Amendment Act, 1947, provided for a further increase in the rate of benefits payable, the effective date being as from 1st October, 1947. The same amendment gave the Commission power to continue superannuation, family, and minors' benefits without review for a period longer than the twelve months to which it was previously restricted. Other benefits subject to a means test may not be granted, or renewed for a period exceeding twelve months without further investigation as to change in circumstances. The Social Security Amendment Act, 1949, also provided for an increase in the basic rates of monetary benefits as from the 1st June, 1949. On 2nd June, 1950, the Government announced that, in consideration of the effect of the removal of certain subsidies, it had been decided to increase social security benefits by a flat cost-of-living bonus representing a 5-per-cent. increase, or 2s. 6d. per week, for single beneficiaries and 5s. per week for married couples on existing rates. Benefits affected with retrospective payments as from 8th May. 1950, were age, invalids', miners', orphans', widows', sickness, unemployment, and emergency benefits. An earlier announcement (22nd December, 1949), stated that the amount of allowable income that could be earned by a beneficiary without affecting the benefit was to be increased from £1 to £1 10s. per week. This concession applies to age, invalids', and sickness benefits. These increases were later incorporated in the Social Security Amendment Act, 1950. This Act also provided that the reduction in the basic rates of benefit on account of accumulated property in those cases where it applied (age-benefits and invalids' benefits) was to be £1 for every £15 of value instead of £1 for every £10 as formerly. Further increases ranging from 2s. 6d. to 5s. per week for recipients of social security benefits who are not generally in regular employment were announced on the 9th February, 1951, the increases to date from the 15th February, 1951. A Christmas bonus of £10 to be paid to certain classes of social security beneficiaries and war pensioners was announced on the 16th December, 1950. The rates quoted hereunder take recent increases into account and are those at present in force (March, 1951).

Payments of benefits, other than invalids', miners', or Maori War benefits for which separate provision had been made earlier, during temporary absence from New Zealand, was made permissible at the Commission's discretion by the Finance (No. 2) Act, 1948. Persons employed outside New Zealand will be deemed to be resident in New Zealand if employed on Government business, and may be so deemed at the Commission's discretion if employed otherwise, for the purposes of Part If of the principal Act, where liable for the payment of social security charge on their earnings. In each case the wife and children are also included. The 1950 amendment provided that persons employed by the Governments of Western Samoa and the Cook Islands are exempted from payment of the social security charge unless they remain ordinarily resident in New Zealand.

Superannuation Benefits.—Every person over the age of sixty-five years who satisfies the prescribed residential qualifications is entitled to a superannuation benefit without conditions as to income or property. The residential qualifications are contained in section 12 of the Act, which reads as follows:—

  1. No person shall be entitled to a superannuation benefit under this Part of this Act unless he satisfies the following conditions, namely:—

    1. In the case of a person who was resident in New Zealand on the fifteenth day of March, nineteen hundred and thirty-eight (being the date of the passing of the Pensions Amendment Act, 1937), that he has resided continuously in New Zealand for not less than ten years immediately preceding the date of his application for a superannuation benefit:

    2. In any case to which the last preceding paragraph does not apply, that he has resided continuously in New Zealand for not less than twenty years immediately preceding the date of his application for a superannuation benefit.

  2. For the purposes of the last preceding subsection, continuous residence in New Zealand shall not be deemed to have been interrupted by absence therefrom:—

    1. In any case to which paragraph (a) of the last preceding subsection applies:—

      1. If the total period of absence from New Zealand does not exceed one year; or

      2. If the total period of absence from New Zealand exceeds one year but does not exceed that period by more than six months for every year of residence in New Zealand in excess of a period of ton years, and the applicant has been actually resident in New Zealand for the twelve mouths immediately preceding the date of his application:

    2. In any case to which paragraph (b) of the last preceding subsection applies:—

      1. If the total period of absence from New Zealand does not exceed two years; or

      2. If the total period of absence from New Zealand exceeds two years but does not exceed that period by more than six months for every year of residence in New Zealand in excess of a period of twenty years, and the applicant has been actually resident in New Zealand for the twelve months immediately preceding the date of his application.

Provision is also made to cover absence by a seaman serving on board any ship registered or owned in New Zealand and absence in any capacity as a member of any of His Majesty's Forces.

The rate of the benefit is £10 per annum commencing on 1st April, 1940, and continuing at that rate for one year, thereafter being; increased by £2 10s. per annum. Thus, as from 1st April, 1941, the rate of superannuation benefit was £12 10s. per annum, from 1st April, 1942, £15 per annum, from 1st April, 1950, £35 per annum, and so on until the maximum of £149 10s. per annum is reached on 1st April, 1996.

A superannuation benefit is not payable in addition to any other benefit. For example, a superannuation benefit and an invalid's benefit cannot be paid to the one person. Similarly, a superannuation benefit and an age-benefit are not payable to the one person. If a beneficiary in receipt of a superannuation benefit is later granted an age-benefit, the maximum benefit payable is £149 10s., the amount of the superannuation benefit being merged in the amount of the age-benefit granted.

The number of superannuation benefits in force at the 31st March, 1950, was 69,356, an increase of 3,517 above the total for the previous year. Expenditure on these benefits rose from £1,850,079 in 1948–49 to £2,179,365 in 1949–50.

Age-benefits.—Every person who has attained the age of sixty years is entitled to receive an age-benefit, subject to satisfying certain qualifications in regard to residence and character. The residential qualifications are the same as those set out under the preceding heading in regard to superannuation benefits. The character qualifications mainly relate to desertion of wife or husband or wilful failure in the case of a married man or widower to provide adequate maintenance for wife or for children under sixteen years of age.

The basic rate of the benefit is £149 10s. per annum, subject to certain deductions on account of income or accumulated property, &c. Particulars of additions to and deductions from the basic rate are as follows:—

  • Unmarried applicants: The basic rate is reduced by £1 for every complete £1 of income in excess of £78 per annum.

  • Married applicants: Where husband and wife are both entitled to the benefit, the basic rate is reduced by 10s. for every complete £1 of their combined incomes in excess of £78 per annum. In cases where only one of them is entitled to the benefit, the reduction is at the rate of £1 for every complete £1 of their total income (excluding a family benefit) in excess of £227 10s. per annum. A further provision allows of an extra payment, not exceeding £149 10s. per annum, to a male recipient when his wife is ineligible for any benefit under the Act. This is payable only up to a limit of the total income of the couple plus benefit of £377 per annum.

Age-beneficiaries are entitled to surrender their benefits while their earnings are excessive and to apply for reinstatement immediately the employment ceases. The earnings received during the period that both husband and wife were not on age-benefits are not taken into account.

An age-beneficiary on attaining the age of sixty-five years is entitled to an increase in his allowable income of 2s. 6d. per week for each complete year after attaining the age of sixty years during which he did not receive the benefit but was otherwise eligible so to do. The maximum allowable income under this provision is £2 2s. 6d. per week, or £110 10s. per annum. Appropriate adjustments are made to apply the same provision to a beneficiary whose benefit is reduced by reason of accumulated property, so as to place him in an equivalent position.

In computing the allowable income of any woman no account is to be taken of her personal earnings from domestic service in a private home up to £78 per year provided that such earnings together with other allowable personal income does not exceed £156 per annum.

In addition to the foregoing, a special allowance not exceeding £13 13s. per annum may be paid to any person in receipt of an age-benefit who served as a member of a New Zealand contingent in connection with the South African War or in any of His Majesty's Forces in that war if he had been born in New Zealand or was domiciled therein at the commencement of the war: Provided that an allowance shall not be granted under this section of such an amount that the total amount from all sources (including the value of any benefits in kind) received by the beneficiary in any year shall exceed the sum of £227 10s.

The Commission may also, in its discretion, increase by an amount not exceeding £26 per annum the rate of any benefit under Part II of the Act (including the age-benefit) payable to any beneficiary who was one of the parents of a deceased member of any of His Majesty's Forces established in New Zealand whose death was attributable to service with the Forces. Similar powers exist in respect of a parent of a deceased member of the New Zealand Mercantile Marine within the meaning of the War Pensions and Allowances (Mercantile Marine) Act, 1940, whoso death was attributable to the Second World War. The provision also covers from 1st April, 1949, the case of a deceased member of any Force or of the Mercantile Marine of any part of the British Commonwealth other than New Zealand who was domiciled in New Zealand at the commencement of the Second World War and whose death was directly attributable to that war. At the 31st March, 1950, there were 1,816 of these allowances in force, an increase of 142 over the corresponding 1949 total.

In addition to the deductions on account of income set out above, the rate of the benefit is reduced by £1 for every £15 (this amount was raised from £10 by the 1950 amendment to the Act) of net capital value of accumulated property in excess of £500. The net accumulated property of a husband or wife for this purpose is half of the total net accumulated property of both.

In computing the net capital value of property no account is taken of the following, but any income derived therefrom is charged as income:—

  1. Any interest in land or house property, or mortgage or other encumbrance over such property:

  2. Any interest in any annuity or in any policy of life-assurance:

  3. Any furniture used in the home of the applicant or any personal effects belonging to the applicant.

Income from a property and the value of the same property are not both charged to reduce the age-benefit—e.g., if shares worth £600 produce an income of £30 per annum, either the value of the shares or the income therefrom may be charged, whichever method provides for the greater reduction.

Where an applicant for an age-benefit is totally blind, the rate of the benefit, together with any benefits and allowances payable to or in respect of the wife or husband of the applicant, is not to be less than the total of benefits and allowances that would have been paid if the applicant had been eligible for an invalid's benefit.

The number of age-benefits in force at the 31st March, 1950, was 117,156, an increase of 902 over the figure at the end of March, 1949. Included in the 1950 total were 7,861 dependent wives not eligible for benefit in their own right but who were included in the husbands' benefits, and 492 males receiving the additional allowances of £13 13s. per annum paid to veterans of the South African War. The estimated number of persons in New Zealand at 31st December, 1949, who were aged sixty years or over was 249,750. Expenditure on age-benefits rose from £13,790,971 for 1948–49 to £15,133,751 for 1949–50.

The following table shows the estimated age distribution of persons who were granted new age-benefits during the year ended 31st March, 1950. The figures are exclusive of renewals and transfers from widows' and invalids' benefits.

Age, in Years.Males.Females.Total.
609851,8712,856
61393575968
62307430737
63301356657
64342240582
    Totals, 60–642,3283,4725,800
65–691,1398371,976
70 and over7996891,488
    Totals4,2664,9989,264

An analysis showing the estimated marital status composition of the group covered by the preceding table for the year ended 31st March, 1950, now follows:—

Marital Status.Males.Females.Total.
Single4486801,128
Married3,0813,1846,265
Widowed5259051,430
Separated and divorced212229441
    Totals4,2664,9989,264

Widows' Benefits.—Every widow who is the mother of one or more children under sixteen years of age is entitled to a benefit in respect of widowhood. In addition, any widow not being the mother of children under sixteen years of age who satisfies the following conditions is also entitled to the benefit:—

  1. A widow who has had one or more children, provided that the duration of her marriage was not less than fifteen years or, in the alternative, that the aggregate of the period of the duration of her marriage and any subsequent period during which she had the care of at least one of her children under sixteen years of age was not less than fifteen years:

  2. A widow who, on the expiration of not less than five years after the date of her marriage, became a widow after she attained the age of fifty years:

  3. A widow of not less than fifty years of age who became a widow after she had attained the age of forty years, provided that the duration of her marriage was not less than ten years and that not less than fifteen years have expired since the date of her marriage.

It will be noted that no widow under fifty years of age who has not had one or more children can qualify for the benefit.

Provision is also made for other classes of women (not being widows) to receive benefits as if they were widows. Particulars are as follows:—

  1. Any married woman who satisfies the Commission that she has been deserted by her husband and that she has taken proceedings against him for a maintenance order under the Destitute Persons Act, 1910. Either the beneficiary or the Commission may institute and prosecute proceedings for the enforcement of the order, or for an order cancelling, varying, or suspending the maintenance order. Any moneys paid by a husband, whether by way of maintenance order or otherwise, are set off against any benefit so granted:

  2. Any married woman in respect of whose husband a reception order is in force under the Mental Defectives Act, 1911 (whether or not he is detained in an institution under the Act), or whose husband is for the time being detained in an institution under that Act, whether as a voluntary boarder or otherwise.

Except in the case of widows with one or more children under sixteen years of age, no widow is entitled to receive the widows' benefit unless she and her husband were both resident in New Zealand for not less than three years immediately preceding the death of the husband.

The term “children” does not include any child born out of New Zealand unless at least one of the following conditions is satisfied—namely, that:—

  1. The mother of the child was only temporarily out of New Zealand at the time of its birth; or

  2. Both parents were resident in New Zealand for the three years immediately preceding the date of the father's death (in cases where the husband of the applicant is dead); or

  3. Both parents were resident in New Zealand for the three years immediately preceding the desertion of the applicant by her husband, or for the three years immediately preceding the making of a reception order in respect of the husband under the Mental Defectives Act or before his admission to an institution under that Act.

The term “child” includes a step-child or a child adopted during the lifetime of the husband of the applicant (in cases where the husband is dead) or adopted while the husband and wife were living together (in cases of desertion, &c.). It may also (at the discretion of the Commission) include any child who is being maintained by the applicant or was at any time maintained by the husband of the applicant.

No woman shall be entitled to receive a widow's benefit unless the Commission is satisfied that she is of good moral character and sober habits.

The rates of widows' benefits payable are:—

  1. Widows with a child or children under sixteen years of age, £149 10s. per annum:

  2. Widows without dependent children, £149 10s. per annum.

In addition to the benefit payable to a widow with dependent children under sixteen years of age, she is entitled to receive a mother's allowance at the rate of £91 per annum.

Any income received is taken into account in computing the benefit payable, and where such income exceeds £78 the annual rate of benefit is reduced by £1 for every complete £1 of such excess. The maximum of income plus benefit in the case of a widow with dependent children is £318 10s. per annum, and in the case of a widow without dependent children £227 10s. per annum. A widow with dependent children will, of course, receive in addition the universal family benefit of 10s. per week for each child.

The provision relating to the allowable income of £78 per year gained from domestic service in a private home without affecting the amount of the benefit payable to women age-beneficiaries also applies to widows' benefits.

Where there are no dependent children, the benefit of widows attaining the age of sixty years is also reducible by £1 for every complete £15 of the accumulated property in excess of £500 computed as if she were an applicant for age-benefit. Widows' benefits cease on remarriage.

At the 31st March, 1950, there were 14,198 benefits in force, a decrease of 685 during the year. Expenditure totalled £2,159,914 in 1949–50, compared with £1,911,134 in 1948–49. Offset against these amounts were the sums of £65,273 and £64,104 respectively, being recoveries of maintenance from defaulting husbands.

The following table affords an analysis of widows' benefits in force at the 31st March, 1950.

With Dependent Children.Without Dependent Children.Total.
Widows3,9488,99612,944
Deserted wives7723461,118
Wives of mental hospital patients9046136
    Totals4,8109,38814,198

Orphans' Benefits.—A benefit in respect of complete orphanhood is payable in the case of a child under sixteen years of age who was born in New Zealand or whose last surviving parent was resident in New Zealand for a period of not less than three years preceding the date of his or her death. A step-child or an adopted child comes within the definition of the term, and payment may be made to any person for the time being having the care and control of the child. No payment is made on account of any orphan maintained in a State institution, but payment may be made to the governing bodies of homes and orphanages of religious or other organizations.

The amount payable as an orphan's benefit is limited to a maximum of £78 per annum less any income received by or for the benefit of the orphan, but a lesser amount may be granted if it is considered that the circumstances of the case warrant it. In any case where the income of the orphan falls below £26 per annum, application may be made for a family benefit of 10s. a week in lieu of orphan's benefit. For the purpose of assisting in the further education of any child, the Commission may continue or grant the benefit until the end of the year in which the child reaches the age of eighteen years.

The number of benefits in force at the end of March, 1950, was 366 (in respect of 484 children), a decline of 5 during the year. Expenditure increased from £27,623 in 1948–49 to £31, 176 in 1949–50.

Family Benefits.—As from 1st April, 1946, the father or mother of any child or children under sixteen years of age may apply for a family benefit, irrespective of the income or property of the parents or children. Prior to 1st April, 1946, family benefits were payable subject to a means test.

The rate of the benefit is 10s. per week for each child, and in every case is paid to the mother of the children, unless in special circumstances the Commission considers that it should be paid to the father or to some other person for the benefit of the children.

If a beneficiary in receipt of an age or other monetary benefit is the parent of dependent children, payment in respect of the children is made by way of a separate family benefit.

The term “children” includes stepchildren and adopted children, but does not include:—

  1. Any child who has attained the age of sixteen years unless such child is continuing its education as a full-time day pupil at a school or college, in which case the Commission may grant or continue the benefit until it reaches the age of eighteen years.

  2. Any child who is not in fact maintained as a member of the family of the applicant.

  3. Any child in respect of whom any other benefit is payable under the Act.

The Commission may regard as a member of the applicant's family any child who, although not a child of the applicant, is being maintained as a member of the family. A benefit may also be continued beyond the age of sixteen years in respect of any child who is totally incapacitated from earning a living by reason of some physical or mental defect.

In order to qualify for a family benefit, at least one of the following conditions must be satisfied, namely—

  1. The child was born in New Zealand.

  2. The mother of the child was only temporarily absent from New Zealand at the time of its birth.

  3. The child has been permanently resident in New Zealand for not less than one year.

A benefit is not payable in respect of any child committed to the care of the Child Welfare Department nor in respect of any child residing in an institution under the care of the Division of Mental Hygiene of the Health Department. Family benefits are, however, paid to children of a member of any of His Majesty's Naval, Military, or Air Forces.

The total number of benefits in force at the 31st March, 1950, was 254,920 covering 567,587 children, compared with the corresponding figures of 248,726 and 548,330 at the 31st March, 1949. Included in the 1949–50 total of children were 8,592 pupils and 99 incapacitated minors over the age of sixteen years. Expenditure increased from £14,242,203 in 1948–49 to £14,850,959 in 1949–50.

The next table gives the number of family benefits in force at the end of March, 1949 and 1950, classified according to the number of children receiving the benefit in each case.

Number of Children Receiving Benefit in Each Case.Number of Benefits at 31st March, 1949.Number of Benefits at 31st March, 1950.
195,68194,627
275,17878,924
341,48843,576
419,74120,590
58,5868,906
63,9754,078
72,0882,143
81,0981,178
9531527
10 or over360371
    Totals248,726254,920

The average number of children per family in respect of whom benefit was paid was 2.14 in 1947–48, 2.20 in 1948–49, and 2.20 in 1949–50.

Invalids' Benefits.—Subject to certain residential and other qualifications, every person of the age of sixteen years and upwards who is not qualified to receive an age-benefit is entitled to an invalid's benefit if he:—

  1. Is totally blind; or

  2. Is permanently incapacitated for work as the result of an accident or by reason of illness or of any congenital defect.

The other qualifications referred to are as follows:—

  1. That he has resided continuously in New Zealand for a period of not less than ten years immediately preceding the date of his application. Continuity of residence is not deemed to be interrupted where the total period of absence does not exceed twelve months, or does not exceed twelve months by more than one month for every year of residence in New Zealand in excess of ten years, if the applicant has been actually resident in New Zealand for the twelve months immediately preceding the date of his application. In the case of a totally blind person continuous residence is not deemed to be interrupted by absence for the purpose of vocational training or for treatment in respect of the eyes, or in other cases by any period of absence for the purpose of obtaining any special surgical treatment, if the Commission is satisfied that there were good and sufficient reasons for leaving New Zealand to obtain such special treatment.

  2. In the case of an applicant in respect of blindness, that he was born in New Zealand or became blind while permanently resident in New Zealand. In the case of every other applicant, that he was born in New Zealand with the condition to which his incapacity for work is attributable, or that he became incapacitated for work by reason of an accident happening in New Zealand or by reason of illness contracted in New Zealand. These restrictions do not apply to any applicant who was actually resident in New Zealand on the 4th day of September, 1936 (the date of the passing of the Pensions Amendment Act, 1936, which first made provision for invalidity pensions other than for blindness), or to any person becoming resident in New Zealand after that date, who has resided continuously in New Zealand for not less than twenty years immediately preceding the date of his application for a benefit.

  3. That incapacity for work was not self-induced or in any way brought about with a view to qualifying for an invalidity benefit.

  4. Applicant must be of good moral character and sober habits.

Provision is made for a medical examination, when necessary, to determine the extent of incapacity. In the event of an application being declined on medical grounds, the applicant has the right of appeal, within three months after the decision of the Commission has been communicated to him, to a Board of three medical practitioners nominated by the Department. An invalid's benefit may be paid in respect of a period of absence from New Zealand not exceeding two years in the aggregate, if the Commission is satisfied that such absence was for the purpose of obtaining any special medical or surgical treatment, or in the case of blindness, for the purpose of undertaking vocational training or treatment in respect of the eyes.

The prescribed rates for invalids' benefits, together with the amounts of allowable income are as follows.

Class of Person.Rate of Benefit.Allowable Income.
Weekly.Yearly.Weekly.Yearly.
 £s.d.£s.d.£s.d.£s.d.
Single, under twenty years2501170011007800
Widower with dependent children217614910011007800
Married man217614910011007800
Wife2176149100
Married woman2176149100476227100
All other persons217614910011007800

As in the case of other benefits, dependent children are paid for by way of the family benefit at 10s. a week each.

In each case the amount of the benefit is reduced by £1 for every complete £1 of income in excess of the amounts stated as allowable. Deductions on account of property are the same as for age-benefits, which are described under a previous heading. In computing the income for any blind person no account is taken of personal earnings up to £156 per annum. In addition, personal earnings of such blind persons are subsidized to the extent of 25 per cent. so long as the total income, including any benefit received, does not exceed £331 10s. per annum. The maximum invalid benefit payable plus allowable income is £377 per annum.

The qualifications in respect of property are the same as those applicable to age-benefits.

Where an applicant is a married woman and, by reason of incapacity, necessary nursing or domestic assistance is required to be paid for, the Commission may increase the rate of any benefit which may have been reduced on account of income or property to an amount not in excess of £149 10s. a year, but so that the total income of applicant and husband, inclusive of the benefit, does not exceed £9 5s. a week.

Any person in receipt of an invalid's benefit who, on the attainment of age sixty becomes entitled to receive an age-benefit is required to relinquish his invalid's benefit and is granted an age-benefit in lieu thereof, but the aggregate amount payable for a blind beneficiary and his wife (if any) is not altered by this transfer.

Invalids' benefits in force at the 31st March, 1950, numbered 9,476, a decrease of 575 on the March, 1949, figure, while expenditure rose from £1,348,616 in 1948–49 to £1,397,713 in 1949–50.

Miners' Benefits.—Subject to the qualifications set out hereunder, a miner's benefit is payable to any person who, while engaged as a miner in New Zealand, contracted miner's phthisis and is thereby permanently and seriously incapacitated for work, or to any person who contracted, while engaged as a miner in New Zealand, any other occupational or heart disease and is thereby permanently and totally incapacitated for work. The term “miner's phthisis” means pneumoconiosis and includes tuberculosis of the lungs or any other disease of the respiratory organs commonly associated with, or a sequel to, pneumoconiosis. The necessary qualifications are:—

  1. Employment as a miner in New Zealand for not less than two and a half years:

  2. Continuous residence in New Zealand for not less than five years immediately preceding the date of his application for a benefit. Continuity of residence is not deemed to have been interrupted by occasional absences aggregating not more than six months:

  3. Good moral character and sober habits and must not have deserted or wilfully failed to provide for his wife and children during the period of five years immediately preceding the date of application.

  4. That compensation under the Workers' Compensation Act in respect of the same disability is not being received.

The rates of miners' benefits are £2 17s. 6d. per week or £149 10s. per annum, increased by £2 17s. 6d. per week, or £149 10s. per annum, for a wife. Dependent children under sixteen years are paid for by way of family benefit at the rate of 10s. per week each.

There is no reduction in the benefit on account of the income or property of the applicant and/or his wife.

Provision is made for medical examination where necessary to determine whether the applicant is permanently incapacitated for work, or the extent of his incapacity.

A special provision is made for the payment from the Social Security Fund of a reasonable contribution towards the funeral expenses of any person who dies while in receipt of a miner's benefit. The amount to be paid is at the discretion of the Commission.

If a person in receipt of a miner's benefit dies leaving a widow, such widow is entitled to a benefit of £2 5s. per week, or £117 per annum, during widowhood. This benefit is payable regardless of the circumstances of the widow, her income or property not being considered in the granting of a benefit.

Payment of benefits is not affected by a period of absence from New Zealand not exceeding two years in the aggregate.

Miners' benefits in force at the 31st March, 1950, numbered 636, 24 fewer than at the corresponding date in 1949. During 1949–50 the expenditure on this class of benefit was £120,061, compared with £113,659 in 1948–49.

Unemployment Benefits.—Subject to the conditions set out below, every person over the age of sixteen years who is not qualified to receive an age-benefit is entitled to a benefit in respect of unemployment. An applicant is required to satisfy the Commission in respect of the following:—

  1. That he is unemployed:

  2. That he is capable of undertaking and is willing to undertake suitable work:

  3. That he has taken reasonable steps to obtain suitable employment:

  4. That he has resided continuously in New Zealand for not less than twelve months.

An unemployment benefit is not payable in respect of the first seven days of any period of unemployment, except in special circumstances. In addition, the Commission may postpone, for a period not exceeding six weeks, the commencement of the benefit, or it may terminate the benefit in any of the following circumstances:—

  1. If the applicant has voluntarily become unemployed without good and sufficient reason:

  2. If the applicant has lost his employment by reason of any misconduct as a worker:

  3. If the applicant or beneficiary has refused or failed, without a good and sufficient reason, to accept any offer of suitable employment:

  4. In the case of a seasonal worker, if his earnings for the season are sufficient for the maintenance of himself and his family notwithstanding a period of temporary unemployment.

Unemployment benefits are payable in accordance with the following scale:—

 Weekly Benefit, £s.d.
To applicants sixteen and under twenty years without dependants1150
To all other applicants2176
In respect of the applicant's wife2176

Dependent children are paid for by way of family benefit at the rate of 10s. per week each.

The benefit is payable so long as the beneficiary is unemployed or until he becomes eligible to receive another class of benefit, other than a family benefit—e.g., an age-benefit.

A married woman is entitled to receive the benefit only if her husband is unable to maintain her. If a beneficiary is not receiving a benefit in respect of a wife, an allowance may be made in respect of any person who has the care of his home.

The foregoing rates of benefits may be reduced, having regard to the income received or the property owned by the applicant or his wife.

The number of applications for unemployment benefits dealt with during the years ended 31st March, 1949 and 1950, were 752 and 498 respectively, 344 persons being granted a benefit in 1948–49 and 175 in 1949–50. At the end of March, 1950, 12 benefits were in force, compared with 30 at the end of the previous year. Expenditure for the year 1949–50 amounted to £10,402, as against £8,948 in 1948–49.

The following table is of interest in that it shows the duration of those unemployment benefits which ceased during the year ended 31st March, 1950. The figures are exclusive of benefits paid for less than three days, those paid for three days or more counting as a full week.

Age-group (Years).Number of Weeks on Benefit.Total.
1–4.5–12.13–25.26–52.53 and Over.

* Includes 5 females.

16–19121  4
20–29241661 47
30–394431113190
40–495736164 113
50–593217157 71
60 and over493  16
Totals16211152151341*

Sickness Benefits.—Every person over the age of sixteen years who has resided continuously in New Zealand for not less than twelve months and who satisfies the Commission that he is temporarily incapacitated for work through sickness or accident, and that by reason thereof he has suffered a loss of salary, wages, or other earnings, is entitled to a sickness benefit. The amount of the benefit is limited to the amount by which the weekly earnings of the applicant have been reduced by reason of his incapacity or to a maximum of £5 15s. a week payable to a man and his wife. Where a person is engaged in business on his own account and by reason of sickness or accident is obliged to employ a substitute during the period of incapacity, the remuneration paid to the substitute is regarded as loss of earnings. Every application for a benefit must be supported by a medical certificate, and no benefit is payable for the first seven days of incapacity except under special circumstances.

A married woman shall be entitled to receive a benefit under this section only if the Commission is satisfied that her husband is unable to maintain her.

Subject to the foregoing remarks concerning amount of benefit, the rates of sickness benefits shall be computed as follows:—

  1. In the case of an applicant under twenty years of age without dependants, the benefit shall be at the rate of £1 15s. a week.

  2. In every other case the benefit shall be at the rate of £2 17s. 6d. a week, increased (in the case of an applicant with a wife) by £2 17s. 6d. a week in respect of his wife.

Any applicant who is maintaining a home and who is not drawing a benefit in respect of a wife may receive a benefit at a rate not exceeding that for a wife in respect of any person who has the care of his home.

Dependent children are paid for by way of family benefit.

The rate of benefit computed as aforesaid is reduced by 1s. for every complete shilling of the total income of the applicant and of his wife or her husband, as the case may be, in excess of £1 10s. a week or, in any case where the applicant or his wife or her husband, as the case may be, is in receipt of a sick-benefit from a friendly society or a like benefit from any other source, in excess of £2 10s. a week.

The number of applications for sickness benefits dealt with during the years ended 31st March, 1949 and 1950, were 33,918 and 31,542 respectively. The number of persons granted sickness benefits were 30,421 in 1948–49 and 28,803 in 1949–50. Benefits in force at 31st March, 1950, totalled 4,931, compared with 4,426 at the end of March, 1949. Total expenditure for 1949–50 amounted to £1,008,651, an increase of £97,544 on the 1948–49 figure.

In the following table sickness benefits which ceased during the year ended 31st March, 1950, are shown according to the duration of the sickness benefit.

Duration of Sickness Benefit (Weeks).Number of Benefits.
Males.Females.Total.
1–49,8882,61512,503
5–127,0992,2339,332
13–252,8551,1373,992
26–521,3605591,919
53 and over6963751,071
    Totals21,8986,91928,817

Emergency Benefits.—An emergency benefit may be granted by the Commission on the grounds of hardship to any person who by reason of age, physical or mental disability, domestic circumstances, or any other reason is unable to earn a sufficient livelihood for himself and those dependent on him and is ineligible for any other monetary benefit.

The amount of the emergency benefit is at the discretion of the Commission, which fixes as nearly as possible an amount equal to that payable for the type of benefit for which the applicant most closely qualifies.

Emergency benefits in force at the 31st March, 1950, numbered 2,277, compared with last year's figure of 2,031. Expenditure in the 1949–50 year amounted to £280,155 and in 1948–49 to £251,409.

During the year ended 31st March, 1950, over 950 displaced persons arrived in New Zealand from Europe, and from the date of arrival on 29th June, 1949, until the end of the week in which they were placed in employment, they were assisted as required by way of emergency unemployment benefit. From the date of arrival to the date of closing of the camp on 11th November, 1949, 577 emergency unemployment benefits had been granted with a corresponding expenditure of £2,986.

Reciprocal Benefits.—The Social Security (Reciprocity with Australia) Act, 1948, which repealed the Age Benefits and Invalids' Benefits (Reciprocity with Australia) Act, 1943, is designed to provide for reciprocity in relation to a wide range of benefits between New Zealand and the Commonwealth of Australia. The Act came into force on 1st July, 1949. A similar Act was passed in Australia and came into force on the same date.

Part II of the Act covers the case of former residents of Australia and applies to any person who, having at any time resided in Australia, is permanently resident in New Zealand inasmuch as he either satisfies the Commission that he is so permanently resident or has been in continuous residence in New Zealand for not less than six months (unless in this case the appropriate authorities in both countries agree that the residence is not to be regarded as permanent).

For the purpose of any application for a benefit in respect of a person covered by this Act, residence in Australia or birth in Australia will be regarded as residence or birth in this country.

Applicants for age, invalids', or widows' benefits must be qualified on residential grounds to receive the corresponding pensions under the Social Services Consolidation Act (Australia) as if his or her residence in New Zealand had been residence in Australia. No male person is entitled to receive an age-benefit unless he has attained the age of sixty-five years. The Act also provides that the Commission shall treat blindness or permanent incapacity for work occurring in Australia as if it had occurred in New Zealand.

Part III of the Act deals with persons who, although ordinarily resident in New Zealand, are temporarily resident in Australia. Such residence is not a disqualification for a benefit. Benefits may be applied for and paid in Australia, although the Commission may, in its discretion, postpone payment of the whole or any part of the benefit until the return of the beneficiary to New Zealand.

The appropriate reciprocal provisions made in respect of Australia are contained in the Schedule to the Act.

Reciprocity exists in respect of the following classes of pensions, allowances, endowments, and benefits under the respective Acts governing social security provisions:—

  1. Age-pensions and age-benefits.

  2. Invalid pensions (including wives' and children's allowances) and invalids' benefits.

  3. Widows' pensions and widows' benefits.

  4. Child endowment and family benefits.

  5. Unemployment and sickness benefits.

The total reciprocal benefits in force in New Zealand as at the 31st March, 1950, were: age-benefits, 211; invalids' benefits, 21; family benefits, 79; widows' benefits, 23; and sickness benefits, 7. The 1949 figures cover only age-benefits and invalids' benefits under the 1943 legislation, the totals for which were 219 and 51 respectively.

As mentioned earlier, reciprocity in respect of family benefits between New Zealand and Great Britain and Northern Ireland was provided for by legislation during 1948, reciprocal family benefits in force at the 31st March, 1950, numbering 776, compared with the 1949 figure of 561.

Medical, Hospital, and other Related Benefits.—The part of the Act dealing with medical and like benefits is of general application to all persons ordinarily resident in New Zealand, and makes provision for medical, pharmaceutical, hospital, maternity, and other related benefits. The Act provided that the various benefits should be available on and after 1st April, 1939, or if for any reason arrangements for the effective administration of benefits of any of the prescribed classes could not be completed before that date, such benefits should be available on or after such later date as might be determined by the Minister (being the earliest possible date on which arrangements for their effective administration could be brought into operation).

The Act also gives authority for the inauguration of supplementary benefits as and when the occasion for providing such benefits arises. Among the supplementary benefits contemplated were specialist and consultant services, radiological services, dental services, home nursing services, and domestic assistance. All of these benefits have been introduced and are referred to under their respective headings.

Medical Benefits.—Under the provisions contained in the Act every person is entitled to such medical treatment as is ordinarily given by medical practitioners in the course of a general practice. Certain services are excluded, the principal of these being as follows:—

  1. The administration of anæsthetics:

  2. Medical services afforded in relation to maternity cases. (These services are covered by maternity benefits and are described under a later heading):

  3. Medical services involved in any medical examination of which the sole or primary purpose is the obtaining of a medical certificate:

  4. Medical services involved in the treatment of any venereal disease in a communicable form. (Treatment in this connection is provided for under the Health Act, 1920):

  5. Medical services involved in or incidental to the extraction of teeth by a medical practitioner:

  6. Medical services in respect of which fees are payable under the Social Security (X-ray Diagnostic Services) Regulations 1941, Social Security (Physiotherapy) Regulations 1951, and Social Security (Laboratory Diagnostic Services) Regulation 1946—see later headings.

  7. Medical services afforded by means of advice given by telephone, telegram, or letter except under circumstances specifically approved by the Director-General of Health, and medical services not afforded by a medical practitioner in person.

The principal Act provided that a registered medical practitioner who wished to come within the scope of the scheme was required to enter into a contract with the Minister, and regulations issued on 19th February, 1941, prescribed the procedure in connection with the initiation of the scheme, the classes of benefits that were to be provided, the obligations of practitioners who undertook to operate the scheme, and the rates of remuneration payable to them. A person entitled to receive medical benefits was required to make application on the prescribed form, which he then presented to the medical practitioner of his choice. If the practitioner was willing to provide the necessary services for the person named in the form, he completed an agreement as between the applicant and himself by attaching his signature thereto. These completed agreements formed the basis of the practitioner's list of patients, for each of whom he was entitled to receive from the Social Security Fund a capitation fee at the rate of 15s. per annum, plus mileage fees in certain circumstances. This scheme came into operation on 1st March, 1941.

An important change in principle was made by the Social Security Amendment Act, 1941, which provided an alternative to the capitation scheme. This amendment, which came into force on 1st November, 1941, and which was subsequently modified by the 1949 amendment to the principal Act, provides that every medical practitioner who renders any of the prescribed services shall be entitled to receive from the Social Security Fund a reasonable fee not exceeding 7s. 6d. for every occasion on which any such service is provided. Mileage fees are also provided for in certain cases. Regulations which came into force from the 1st September, 1950, and revoked the Social Security (General Medical Services) Regulations 1941, stipulate that where the practitioner is called upon to provide, in response to an urgent request, services on a Sunday or holiday, or between the hours of 8 p.m. and 8 a.m., the appropriate fee shall be a reasonable one not exceeding 12s. 6d. The Act also provides that the practitioner, instead of claiming from the Fund the amount to which he is entitled under the Act, may receive payment from the patient. This refund system, by virtue of the 1949 amendment, is not to apply unless authority is given by the Council of the New Zealand Branch of the British Medical Association after consultation with the Minister or where the amount is recovered from a registered friendly society. In such cases the patient is entitled to recover from the Fund (such recovery being limited to the prescribed fee), and the practitioner is required to provide the necessary receipt to enable this to be done.

The 1949 amendment to the Social Security Act prohibited practice under the capitation system and fee for service system at the same time. This amendment also laid down conditions in respect of the right to recover fees from patients and for reference of accounts to the Divisional Disciplinary Committee appointed under the Medical Practitioners Amendment Act, 1949. These provisions came into force as from the 1st April, 1950.

Pharmaceutical Benefits.—Persons claiming medical benefits are entitled to receive, without cost to themselves, all such medicines, drugs, approved appliances, and materials as are prescribed for their use by a medical practitioner in the course of providing any medical services under the Act. This class of benefits was introduced on 5th May, 1941, regulations providing for them having been issued on 22nd April, 1941. Under these regulations the proprietor of any pharmacy within the meaning of the Pharmacy Act, 1939, or any other person entitled to sell any drugs or pharmaceutical requirements, may be permitted to become a contractor under the scheme. The regulations stipulate that the Minister shall prepare a drug tariff, which shall contain particulars of maximum quantities, standards of quality, and prices of medicines, drugs, appliances, &c., that may be supplied and charged against the Fund. Hospital Boards are entitled to receive payment for pharmaceutical requirements supplied to out-patients, but not in respect of in-patients.

Hospital Benefits.—The Act provides for the payment to Hospital Boards and to the proprietors of licensed hospitals and other approved institutions (who have entered into contracts under the Act) of prescribed amounts in respect of hospital treatment afforded by them. The amount paid to a Hospital Board is in full satisfaction of its claim for the treatment of patients; in the case of licensed hospitals and other institutions the amount paid is in partial satisfaction of claims against the patients or other persons liable for the hospital charges.

These benefits came into force on 1st July, 1939, and the present rates (as from 1st April, 1943) are as follows:—

  1. Where treatment has been afforded on not more than two days, the sum of 18s.:

  2. In every other case, the sum of 9s. for every day on which any treatment is afforded:

Provided that the day of admission to hospital and day of discharge therefrom shall together be counted as one day.

Prior to 1st April, 1943, the rates were 12s. and 6s. for (a) end (b) respectively.

The Act also provides that in lieu of payment being made in respect of individual hospital patients, the Minister may from time to time authorize the payment of a grant in respect of hospital treatment afforded in any private hospital or other approved institution.

In addition to the public hospitals and licensed private hospitals, there is another limited class of semi-public hospitals which, in accordance with the Act, has been approved for the purposes of hospital benefits. This includes the Karitane Baby Hospitals (six) conducted by the Royal New Zealand Society for the Protection of Women and Children, more commonly known as the Plunket Society, and in addition a home for incurables operated under a charitable trust. Special rates were determined for these classes of hospital, and such payments must be accepted in full satisfaction of the claim of the institution authorities.

Hospital benefits are also available in respect of maintenance and treatment afforded to any in-patient of Queen Mary Neurological Hospital, Hanmer Springs, or of the Rotorua Sanatorium. The fees chargeable to patients of these institutions have been reduced by 9s. per day, and corresponding payment is made from the Social Security Fund to the credit of the Departments controlling the institutions.

Regulations issued on 19th March, 1941 (since replaced by the Social Security (Hospital Benefits for Out-patients) Regulations 1947), made provision for free treatment of out-patients at public hospitals. “Hospital treatment” in relation to an out-patient of any public hospital covers the supply of artificial aids, including contact lenses (introduced 1st June, 1947), hearing aids (1st November, 1947) and artificial limbs (1st April, 1948), and all medical, surgical, or other treatment afforded by the staff of the hospital; but does not include dental treatment or services in respect of which fees are payable under specific Social Security Regulations (x-ray diagnostic services, laboratory diagnostic services) referred to under later headings. The amounts to be paid to Hospital Boards from the Social Security Fund for providing out-patient treatment are determined by the Minister and may not be less than one-half of the expenditure or liability incurred in providing the services.

Mental Hospitals.—The principal Act made provision for the treatment of patients in public mental hospitals without charge as from 1st April, 1939. By section 10 of the Social Security Amendment Act, 1939, a licensed (private) mental hospital may be recognized and approved by the Minister as a hospital for the purposes of the Act, and hospital benefits in respect of treatment therein are payable accordingly.

All expenditure since 1st April, 1945, in connection with public mental hospitals has been borne by the Consolidated Fund.

Maternity Benefits.—Maternity benefits include ante-natal and post-natal advice and treatment by medical practitioners, and the services of doctors and nurses at confinements in maternity hospitals or elsewhere.

These benefits came into force on 15th May, 1939, but the maternity medical practitioner service was not in full operation until 1st October of that year. The principal Act required that medical practitioners, licensees of private hospitals, &c., and midwives and maternity nurses, who wished to come within the scope of the scheme should enter into a contract with the Minister. While this provision remains in force in regard to hospitals and midwives and maternity nurses, the Social Security Amendment Act, 1939, provides that any medical practitioner who renders medical services to a woman entitled to a maternity benefit, is entitled to receive certain proscribed fees from the Social Security Fund. The scale of fees, which may be fixed by agreement between the Minister and the New Zealand Branch of the British Medical Association, or in default of such agreement by a special tribunal, is intended to cover the usual services performed in maternity cases. The amount calculated in accordance with the scale of fees for the time being in force shall be accepted by the medical practitioner in full satisfaction of his claims in respect of the services for which payment is made, except in the case of a practitioner who is recognized as an obstetric specialist in accordance with the terms of the Act. Such a practitioner, in addition to the fees payable from the Social Security Fund, may recover additional fees from the patient.

The main provisions in regard to maternity benefits apart from the medical practitioner service are as follows:—

  1. State maternity (St. Helens) hospitals: No charge is made for any services in the St. Helens Hospitals.

  2. Public maternity hospitals or maternity wards under control of Hospital Boards: Payment from Social Security Fund to Hospital Board as under:—

    1. One pound in respect of the day of birth of the child and each of the succeeding fourteen days:

    2. A fee of £2 where any patient is actually attended during labour and at delivery by a medical officer employed by the Board.

      These amounts are to be regarded as in full settlement of all claims in respect of the maternity benefits afforded by the Board.

  3. Licensed (private) maternity hospitals: Licensees of licensed maternity hospitals who have entered into contracts under the Act are entitled to receive fees from the Social Security Fund at the same rates as stated in (2) (a) and (b) in regard to Hospital Boards. In some cases the licensee's contract requires him to accept such payment in full satisfaction of his claim in respect of the prescribed period, and in other cases he is permitted under his particular contract to make a specified additional charge on the patient.

  4. Midwives and maternity nurses: Approved midwives and maternity nurses who are in attendance in cases where confinement takes place other than in a maternity hospital, are entitled to receive from the Fund fees at the rate of £1 for the day or days of labour (£2 in the case of midwives) and 13s. per day for each of the fourteen days succeeding the birth of the child or 5s. per day if only a visiting obstetric nurse. These amounts are to be regarded as in full satisfaction of a nurse's claims in respect of the nursing services.

X-ray Diagnostic Services.—The first of the supplementary benefits was introduced by the Social Security (X-ray Diagnostic Services) Regulations 1941, which came into operation on 11th August, 1941. The benefits provided for by these regulations comprise the following:—

  1. The making of X-ray examinations with the aid of a fluorescent screen:

  2. The taking of X-ray photographs:

  3. The supply and administration of any drugs or other substances for the purposes of any such examination or photograph:

  4. The provision of medical services incidental to any such examination or photograph, except medical services of a kind not ordinarily performed by radiologists as such:

  5. The provision of any other incidental services for the purposes of any such examinations or photographs.

X-ray photographs or X-ray examinations made or taken for dental purposes or for the purposes of life assurance are not included in the services that may be provided.

In order to be recognized as a radiologist for the purpose of the regulations a medical practitioner is required to make application to the Minister specifying his academic qualifications and professional experience, and also the nature of the apparatus or equipment in his possession or available for his use in the performance of radiological work. The Minister may give absolute or limited recognition or may refuse recognition. Absolute recognition covers all classes of X-ray diagnostic services, whereas limited recognition may exclude any specified class or classes of service, or may be restricted to certain specified classes of service. An amended scale of fees payable from the fund in respect of services rendered by recognized radiologists is prescribed in a schedule to the Social Security (X-ray Diagnostic Services) Regulations 1941, Amendment No. 1, issued on 28th January, 1942. Where the service is rendered by a medical practitioner employed or engaged by a Hospital Board, the prescribed fees are to be accepted by the Board in full settlement, but in other cases the amount of such fees is deducted from the amount charged to the patient, who is responsible for the balance, if any.

Physiotherapy Benefits.—The second supplementary benefit introduced concerns physiotherapy treatment by private physiotherapists, and commenced on 1st September, 1942, the current regulations being the Social Security (Physiotherapy Benefits) Regulations 1951. The general arrangement for these benefits consists of contracts with registered physiotherapists under which they are paid from the Social Security Fund a fee of 3s. 6d. for each treatment and undertake not to charge the patient any additional fees in excess of 6s. 6d. for treatment afforded in their rooms or 11s. 6d. for treatment afforded elsewhere.

No physiotherapy treatment is recognized for the purpose of the benefits unless it is given on the recommendation of a medical practitioner, and not more than six weeks' treatment may be given on a single recommendation.

Specialist Services.—The Finance Act (No. 2), 1942, brought specialist services within the scope of the medical benefits. Specialist services are defined as “medical services that involve the application of special skill and experience of a degree or kind that general practitioners as a class cannot reasonably be expected to possess.” An amount not exceeding 7s. 6d. is payable from the Fund (by way of refund to the patient) in respect of every occasion on which any such services have been provided. The Social Security Amendment Act, 1949, authorizes the making of regulations providing for benefits in respect of any class or classes of specialist medical services and for conditions governing the determination of a scale of fees.

Home-nursing Services.—Home-nursing services free of cost to the recipients were introduced by the Social Security (District Nursing Services) Regulations 1944, which stipulate that no charge may be made for district nursing services provided by any Department of State, Hospital Board, or subsidized association elsewhere than in a hospital or other institution. Provision is made for payment from the Social Security Fund to the Department of State, Hospital Board, or association providing district nursing services, of such amounts as the Minister of Health may determine, having regard to the costs incurred in providing such services.

Domestic Assistance.—The provision of monetary assistance to approved incorporated associations formed for the purpose of providing domestic assistance in homes, or whose objects include the provision of such assistance, is made by the Social Security (Domestic Assistance) Regulations 1944. Assistance in this connection is restricted by the regulations to the following classes:—

  1. Cases where there are one or more children under twelve years of age permanently residing in a home and the other or other woman in charge of the home is wholly or partially incapacitated from undertaking her ordinary domestic duties by reason of pregnancy or maternity, or by reason of accident, sickness, &c.

  2. Cases where there are three or more children under twelve years of age permanently residing in the home, and any member of the household requires special care and attention by reason of sickness or infirmity:

  3. Cases where all members of the household of an age or condition to help in the home are wholly or partially incapacitated from work by sickness or otherwise:

  4. Cases where lack of domestic assistance in the home is a cause of undue hardship.

The terms on which the services of a domestic assistant are provided are to be determined by agreement between the association and the householder, and the association is deemed to be the employer.

In fixing the amounts to be paid from the Social Security Fund to any association the Minister shall have regard to the expenses incurred in providing the services of domestic assistants, including expenditure incurred in the organization of any scheme of registration or enrolment or in the training of the assistants, and to the amounts recovered from the householders to whom assistance has been rendered.

Laboratory Diagnostic Services.—The benefits concerning laboratory diagnostic services came into operation on 1st April, 1946, and comprise the supply of all materials or substances required for the purpose of providing laboratory diagnostic services, and the provision of medical services incidental to any laboratory diagnostic service, except medical services of a kind that are not ordinarily performed by pathologists as such, and the provision of any other incidental services for the purposes of laboratory diagnostic services.

The following services are not included:—

  1. Examination of specimens for public health.

  2. Post-mortem examinations.

  3. Laboratory services for dental purposes or for the purposes of life-insurance.

  4. The preparation of sera and vaccines.

The schedule of fees payable from the Fund provides for two scales, one covering fees payable to Hospital Boards and the other covering fees payable to recognized pathologists. In each case the prescribed fee shall be accepted in full satisfaction in respect of the services provided.

Dental Services.—The Social Security (Dental Benefits) Regulations 1946 made provision for the introduction of free dental treatment as from a date to be appointed by the Minister. The regulations restricted the application of dental benefits to persons under nineteen years of age, and provided that they were to be introduced according to such age-groups as the Minister may determine. These benefits commenced on 1st February, 1947, and at present are confined to persons who, for the time being, are under sixteen years of age or were, in the last term of the immediately preceding calendar year, enrolled in a primary or intermediate school or department.

The regulations provide that the services may be provided:—

  1. By a registered dentist or a State dental nurse in a State dental clinic; or

  2. By a contracting dentist pursuant to a contract under the regulations; or

  3. By a contracting authority in a dental department of a public hospital or in a dental school pursuant to a contract under the regulations.

A schedule to the regulations prescribes the nature of the benefits that may be provided and a scale of fees payable to contracting dentists and authorities in respect thereof.

Artificial Aids.—As stated earlier (page 535), the Social Security (Hospital Benefits for Out-patients) Regulations 1947 made provision for the supply of artificial aids, which term includes artificial limbs, hearing-aids, contact lenses, and other appliances for the physical aid or relief of persons as the Minister may from time to time prescribe, either wholly or partly at the cost of the Social Security Fund. Artificial aids at present prescribed for the purposes of the regulations, are:—

  1. Contact Lenses.—These may be supplied in respect of the following optical disabilities: (a) conical cornea, (b) gas keratitis, (c) certain forms of irregular astigmatism and any other conditions which cannot be corrected by ordinary spectacle lenses and which show marked improvement with contact lenses. In each case the supply of such lenses must be recommended by an ophthalmologist employed or engaged by a Hospital Board and approved by the Director-General of Health, acting upon the advice of a medical referee appointed for this purpose.

  2. Hearing-aids.—Individual valve type hearing-aids may be supplied subject to the following conditions:—

    1. The patient possesses a hearing loss of at least 35 decibels in the better ear over the significant frequencies of speech or such other loss of a lesser degree as in the opinion of an otologist employed or engaged by a Hospital Board, renders the use of an aid necessary.

    2. The patient's hearing loss is such that in the opinion of the otologist it is capable of correction or marked improvement by the use of the type of hearing-aid supplied or approved for the purpose of the benefits.

      It is provided that in respect of patients who satisfy all of the above conditions, but who do not wish to avail themselves of the hearing-aid issued free of charge by Hospital Boards, there may be paid a sum not exceeding £13 towards the purchase of any aid approved for the purposes of these benefits.

  3. Artificial Limbs.—The supply of artificial limbs is subject to the following conditions:—

    1. The patient has not obtained or is not entitled to obtain a limb as an ex-serviceman under the provisions of the War Pensions Regulations 1945 or under the provisions of section 46 of the Workers' Compensation Amendment Act, 1947:

    2. The supply of the limb is recommended by an orthopaedic surgeon employed or engaged by a Hospital Board:

    3. The limb is of an approved type and can, in the opinion of the supplier's orthopædic adviser, be satisfactorily fitted:

    4. Not more than 80 per cent. of the cost of the limb shall be borne by the Social Security Fund.

For the purposes of the regulations “artificial limb” includes artificial arms, artificial hands, artificial legs, and artificial feet, and includes an initial supply of not more than six pairs of limb socks for such limbs.

Benefits and Pensions in Force.—A summary showing particulars of the various social security benefits and the various pensions in force in each of the last three financial years is as follows:—

Class of Benefit or Pension.Number in Force at 31st March,Annual Value at 31st March, 1950Payments during
1948.1949.1950.1947–48.1948–49.1949–50.

*The expenditure figures given under this heading are net, i.e., reduced by the amounts recovered under maintenance orders, widows' benefits.

Social Security Benefits—       
Monetary—   ££££
  Universal superannuation61,61265,83969,3562,254,0701,593,7571,850,0792,179,365
  Age117,161116,254117,15615,757,48212,976,28613,790,97115,133,751
  Widows'*14,14514,88314,1982,207,7891,709,6261,847,0302,094,641
  Orphans'37037136631,47624,18727,62331,176
  Family243,137248,726254,92014,415,72613,798,64814,242,20314,850,959
  Invalids'10,68210,0519,4761,447,9331,367,3001,348,6161,397,713
  Miners'685660636104,940110,106113,659120,061
  Maori War1   111102
  Unemployment163012 8,3588,94810,402
  Sickness4,2484,4264,931 897,093911,1071,008,651
  Emergency2,1412,0312,277 227,857251,409280,155
    Totals454,198463,271473,32836,219,41632,713,32934,391,65537,106,876
Health—       
  Medical    2,167,8262,306,8812,524,290
  Hospital    1,949,4891,997,3752,011,649
  Maternity    800,030916,120871,386
  Pharmaceutical    1,558,3501,793,1592,043,843
  Supplementary    545,793861,9131,009,941
    Totals    7,021,4887,875,4488,461,109
War Pensions, &c.—       
  First World War (1914–18)19,71519,32018,9762,255,9442,049,3912,104,6272,271,371
  Second World War (1939–45)28,24927,18726,5371,957,7302,031,1941,906,2322,010,852
  South African War4241393,7563,6893,8923,826
  War Veterans' Allowances2,6173,3673,997828,987422,275562,634743,999
  Mercantile Marine2423242,1922,7272,7002,403
  Emergency Reserve Corps1110111,6121,3681,4471, 588
    Totals50,65849,94849,5845,050,2214,510,6444,581,5325,034,039
Other—       
  Sundry pensions and annuities17315917633,51624,78327,26229,749
  Civil Service Act, 1908    69739 
    Grand totals505,029513,378523,088 44,270,94146,875,93650,631,773

During the year ended 31st March, 1950, £17,150,387, or 46.2 per cent. of the expenditure on monetary benefits, was paid without a means test, the remaining amount being subject to a means test.

The following statement gives particulars of expenditure on the various classes of health benefits during the financial year 1949–50.

Medical Benefits.—Capitation fees, £12,002; general medical services, £2,328,154; special arrangements, £47,406; mileage, fees, £131,995; purchase of sites, erection of medical officers' residences, &c., £4,733: total, £2,524,290.

Hospital Benefits.—Public hospitals, £1,714,329 (in-patients, £1,566,824; outpatients, £147,505); private hospitals, £249,085: approved institutions, £48,235: total, £2,011,649.

Maternity Benefits.—Public hospital fees, £400,334; private hospital fees, £188,739: medical practitioners, £268,166; mileage fees, £7,986; nurses, £6,161: total, £871,386.

Pharmaceutical Benefits.—Chemists, £1,991,350; medical practitioners, £11,266; institutions, £41,227: total, £2,043,843.

Supplementary Benefits.—Radiological services, £276,999; laboratory services, £118,447; physiotherapy services, £63,840; specialists' services (neuro-surgery), £6,553; district nursing services, £116,007: dental services, £324,933; domestic assistance, £3,082; artificial-aids benefits, £99,777; ambulance benefit, £303: total, £1,009,941.

A summary of pensions and social security payments during each of the last eleven years, together with the amount per head of mean population, is now given.

Year Ended 31st March,Payments during Year.
Total.Per Head of Mean Population.
Pensions and Social Security
 ££s.d.
194012,288,3407106
194114,072,4988121
194215,159,961960
194317,736,06610163
194420,261,8791276
194522,489,25013103
194626,198,2481563
194740,616,33122183
194844,270,9412487
194946,875,9362565
195050,631,77326155

WAR PENSIONS.—The War Pensions Act, 1913, which became operative from 1st July, 1943, consolidated and amended the previously existing legislation relating to war pensions. The principal Acts affected were the War Pensions Act, 1915, and its numerous amendments, the War Veterans' Allowances Act, 1935, and the War Pensions Extension Act, 1940, all of which are now repealed. With the exception of Maori War benefits now in abeyance, which were covered by the Social Security Act, and pensions and allowances payable under the authority of the War Pensions and Allowances (Mercantile Marine) Act, 1940, as amended by the War Pensions and Allowances (Mercantile Marine) Amendment Act, 1946, all pensions payable to or on account of members of the Forces are governed by the 1943 Act and its subsequent amendments. The War Pensions Act, 1915, provided for the payment of pensions on certain conditions to disabled members of the New Zealand Forces of the war of 1914–18 (as defined by the Act) and to dependants of disabled, deceased, or missing members of such Forces. The object of the War Veterans' Allowances Act, 1935, which was deemed part of the War Pensions Act, 1915, was to make provision for returned servicemen who, apart from any wounds or other disability not directly attributable to war service, were ageing prematurely or otherwise becoming unemployable by reason of mental or physical disability. The War Pensions Extension Act, 1940, extended the provisions of the War Pensions Act, 1915, to cover overseas service in the Second World War, overseas service in any other war in which His Majesty was engaged, and service within New Zealand. This brought Territorials and members of the Permanent Forces within the scope of the war pensions legislation. Pensions to veterans of the South African War were prior to 1940 granted under the authority of the Defence Act, 1909, but the Finance Act, 1940, transferred this authority to the War Pensions Extension Act.

Administration.—The Secretary for War Pensions, who under the Act must be an officer of the Social Security Department, is charged with the administration of war pensions under the general direction and control of the Minister of Defence. The Act also provides for the appointment of a War Pensions Board, which has the responsibility of granting or declining claims for pensions and allowances. This Board consists of not less than three and not more than four members, one of whom must be a registered medical practitioner and one a representative of returned servicemen. Claimants have the right of appeal to the War Pensions Appeal Board, also appointed under the Act. The Appeal Board consists of three members, two of whom must be registered medical practitioners and the third a representative of returned servicemen. The War Pensions Emergency Regulations 1944 made provision for the appointment of such number of additional War Pensions Boards and War Pensions Appeal Boards as the Minister deemed advisable. During the year ended 31st March, 1950, there were two War Pensions Boards and one War Pensions Appeal Board operating.

Grounds for Payment of Pensions.—Pensions in respect of the death or disablement of any member of the New Zealand Forces are payable to the dependants of the member (in the case of death) and to the member and his dependants (in the case of disablement) in any of the following cases:—

  1. Where death or disablement occurred while on service overseas as a member of the Forces in connection with any war in which His Majesty was then engaged, or is attributable to such service:

  2. Where death or disablement is attributable to service in New Zealand, or is attributable to service overseas otherwise than in connection with any war:

  3. In any ease where the condition which resulted in the death or disablement was aggravated by any service to which either of the last two preceding paragraphs relates.

Special provision is also made for pensions and allowances to members of the Emergency Reserve Corps and their dependants in respect of death or disablement attributable to their duties as members.

The provisions in regard to attributability were considerably liberalized by the new Act, which lays down that the onus of proving that death or disablement was attributable to service, or that the condition which resulted in death or disablement was aggravated by such service, shall not be on the claimant and that the War Pensions Board and the War Pensions Appeal Board shall give claimants the full benefit of all presumptions in their favour. A member who was graded lit for service when he entered the Forces is deemed to have been absolutely fit at that time unless any defects were noted then or within the first two months of service. This presumption does not operate if the member failed to disclose any material fact to the medical examiner. The Act also states that the Boards are not to be bound by technicalities or legal forms or rules of evidence, but shall determine all claims in accordance with their merits.

Rates of Pensions.—The 1943 Act provided for the general rates of disablement pensions being increased by 50 per cent., and for increases in dependants' and economic pensions. Amendments passed in 1946, 1947, 1949, and 1950 further increased the rates of pensions for various categories.

The following table sets out the maximum weekly rates of pension at present payable (March, 1951) in respect of the death of a male member of the Forces.

Bank or Rating.To Widow.To Widow with Dependent Child or Children: Mother's Allowance.To Each Child.
 £s.d.£s.d.s.d.
Ranks and ratings below commissioned rank.2100200100
Lieutenant (Army); Sub-Lieutenant (Navy); Pilot Officer (Air Force)2150200100
Captain (Army); Lieutenant (Navy); Flying Officer, Flight Lieutenant (Air Force)300200100
Major (Army); Lieut.-Commander (Navy); Squadron Leader (Air Force)370200100
Lieut.-Colonel (Army); Commander (Navy); Wing Commander (Air Force)3160200100
Colonel (Army); Captain (Navy); Group Captain (Air Force)3180200100
Brigadier and upwards (Army); Commodore and upwards (Navy); Air Commodore and upwards (Air Force)400200100

In the case of total disablement of a male member of the Forces, the maximum weekly rates range from £3 10s. to £3 15s. (according to rank or rating) to the member, plus £1 12s. 6d. to £2 5s. to a wife without a dependent child and from £2 2s. 6d. to £2 15s. to a wife with a dependent child or children, together with 10s. for each dependent child.

The weekly rates for total disablement of a female member range from £3 10s. to £3 13., according to rank, while 10s. per week is payable in respect of each dependent child in the case of death or disablement.

The 10s. per week in respect of each dependent child may be paid either by way of monetary benefit or, alternatively, by way of war pension.

These rates may be increased by an amount not exceeding £2 per week if the member is suffering from total blindness or where the member has suffered two or more serious disabilities.

A schedule to the Act prescribes the rates of pensions payable in respect of partial disablement resulting from certain major disabilities. In other cases of partial disablement, the rates are decided by the War Pensions Board or the Appeal Board, regard being had in every case to the nature and probable duration of the disablement.

If a member, while in receipt of a permanent pension of an amount of not less than 70 per cent. of the maximum pension that would be payable in respect of total disablement, dies from any cause not attributable to service as a member of the Forces, a pension may be granted to his widow or dependent children as if death was attributable to service.

Other grants and concessions which may be made to disabled servicemen include the following:—

  1. An allowance not exceeding £6 12s. 6d. per week where a pensioner is so disabled as to require the services of a paid attendant:

  2. Additional pensions by way of clothing-allowances of from £16 to £18 per annum to amputees and £10 to others who are obliged to use any mechanical or other appliance:

  3. A free pass on the New Zealand railways to members in receipt of full permanent pensions:

  4. A permit to travel first class at second-class rates on the New Zealand railways to amputees and others suffering locomotor disabilities to a degree of over 50 per cent. for which they receive permanent pensions:

  5. Free medical and surgical treatment in respect of pensionable disabilities. Surgical appliances such as artificial limbs, &c., are also supplied free and kept in good order and repair.

In addition to pensions for wives and children, a pension may be granted to any member of a deceased or disabled serviceman's family who was in fact wholly or partially supported by him at any time within the period of twelve months immediately preceding the date on which the serviceman became a member of the Forces. A “member of the family” includes a parent, grand-parent, step-parent, grandchild, step-child, brother, sister, half-brother, half-sister, and mother-in-law. “Child,” in relation to any member of the Forces, means a child under the age of sixteen years, and includes an adopted child (subject to certain conditions as regards date of adoption) and an illegitimate child (also subject to certain conditions).

The amount of pension payable to a dependant other than a wife or child is governed by the value of the benefits received from the member of the Forces on whose case the claim is based during the period of twelve months immediately preceding the date upon which he became a member of the Forces. The rate, however, is limited to the maximum prescribed for the wife of a member, and in cases where a wife or any child is also in receipt of a pension, the rate must not exceed three-fourths of that amount.

The pension payable to a widowed mother, if wholly dependent on the member, is not to be less than the rate granted if the dependant were the wife of the member, or, if partially dependent, the rate is not to be less than £1 10s. a week.

During the year ended 31st March, 1950, the Department received 5,601 applications for war pensions. Of these, 1,414 applications were lodged by ex-servicemen in respect of their own disabilities, the balance being made up of claims by dependants, applications for economic pensions, and war veterans' allowances. The total for the previous year was 7,078, of these 1,931 being in respect of the applicants' own disability.

The following is a summary of the disabilities attributed to war service from 1939 onwards and for which ex-service personnel had been granted pensions up to the 31st March, 1950.

Class of Disability or Disease.Type of Service.Total.Percentage of Total.
Overseas.“J” Force.New Zealand.
Infections and infestations1,86991121,9903.7
Nervous system9,589101,64611,24521.1
Eye, ear, and nose6,418151,3177,75014.5
Circulatory and blood system1,92519852,9115.5
Metabolism and endrocrine system38011725531.0
Lungs3,203471,0774,3278.1
Diseases of bones, joints, muscles, tendons, and ligaments5,00341,8076,81412.8
Digestive system3,82571,1284,9609.3
Generative system316 1194350.8
Gunshot wounds and accidental injuries to bones, joints, and soft tissues5,997231,1837,20313.5
Skin2,329105192,8585.4
Tumours and neoplastic growths149 481970.4
Malformations300 1314310.8
Amputations471 184890.9
Urinary tract52521356621.2
Debility442 1095511.0
    Totals42,74112910,50653,376100.0

The following table shows for all classes of war pensions the number in force at the end of March in each year and the expenditure during the year for the eleven years, 1940–50.

Year Ended 31st March,First World War* (1914–18).Second World War* (1939–45).War Veterans.South African War.Mercantile. Marine.Emergency Reserve Corps.Total.

* Disability, dependants', and economic pensions.

Number in Force
194023,874 2,07950  26,003
194123,4585512,033479126,099
194222,8943,2971,888453228,129
194322,1617,6661,8074261931,701
194421,03813,0371,79144121035,932
194520,84920,5841,89245181243,400
194620,46026,9262,02946261149,498
194720,08130,0282,27742271052,465
194819,71528,2492,61742241150,658
194919,32027,1873,36741231049,948
195018,97626,5373,99739241149,584
Expenditure
 £££££££
19401,673,730 203,4391,993  1,879,162
19411,649,07614,376211,3251,85891631,877,554
19421,617,481178,135210,5751,5816171,0622,009,451
19431,574,062479,477224,9421,5043501,9852,282,320
19441,973,069917,855224,7052,5507191,4043,120,302
19452,046,0051,407,460242,5013,2431,6521,2283,702,089
19461,997,3901,662,227275,0293,5471,8791,3513,941,423
19472,036,8252,080,952346,6943,5022,9851,3364,472,294
19482,049,3912,031,194422,2753,6892,7271,3684,510,644
19492,104,6271,906,232562,6343,8922,7001,4474,581,532
19502,271,3712,010,852743,9993,8262,4031,5885,034,039

The foregoing figures do not include the following: (a) costs of medical treatment amounting to £216,762 in 1949–50 and £248,465 in 1948–49; (b) railway and bus concessions to pensioners for total and permanent disablement and for locomotor disabilities for which a permanent pension of over 50 per cent. disablement had been granted, costing £14,548 in 1949–50 and £7,029 in the previous year; and (c) loading on life-insurance policies where the loading is due to war disabilities, expenditure under this heading being £1,143 in 1949–50 and £819 in 1948–49.

Medical fees and travelling-expenses of pensioners cost £24,385 in 1949–50, compared with £31,684 in the previous year; while administrative costs for 1949–50 in respect of war pensions and allowances amounted to £17,581, as against £16,802 in 1948–49.

Particulars of First and Second World War pensions in force as at 31st March of each of the last five years are given below.

31st March,Disablement Pensions.Dependants of Disabled ex-members. (No.)On account of Death.Total. (No.)
Permanent. (No.)Temporary. (No.)Widows. (No.)Parents and other Dependants. (No.)
First World War, 1914–18
194614,0718222,8082,23552420,460
194714,1395262,7322,23944520,081
194814,0883242,6332,29137919,715
194913,8122772,5462,34733819,320
195013,5852302,5092,37727518,976
Second World War, 1939–45
19462,56220,2849502,43469626,926
19475,01421,0201,1142,10677430,028
19486,54517,9711,0001,84988428,249
19498,31015,3179871,62994427,187
195010,06513,0119231,58295626,537

Mother's allowance was paid to 2,080 wives or widows of deceased ex-servicemen during the year ended 31st March, 1950. The number of children for whom payments were made during 1949–50 but who were not included in the preceding table totalled 3,244, being 1,171 in respect of First World War pensions and 2,073 for Second World War pensions.

The next table shows the number of pensions in force at 31st March, 1950, classified according to percentage of disability.

Percentage of Disability.First World War.Second World War.
Permanent.TemporaryTotal.Permanent.Temporary.Total.
1001,871251,8965109461,456
90–9976 76531467
80–89426543121892310
70–798989907322231553
60–6981010820260255515
50–592,003372,0406505781,228
40–49836338696065951,201
30–392,015282,0431,1351,1982,333
20–293,357543,4113,2493,7396,988
10–191,244291,2733,0335,3608,393
Under 1049 4929332
    Totals13,58523013,81510,06513,01123,076

Economic Pensions.—An “economic pension” is defined as a supplementary pension granted on economic grounds and is in addition to any pension payable as of right in respect of death or disablement. In considering a claim for an economic pension, the Pensions Board is required to take into consideration the ability of the claimant to obtain and retain suitable employment, the personal income and ownership of any property, the cost of living, and other relevant matters. Personal earnings other than from regular employment may be disregarded in the case of a claimant who is in receipt of a total-disability pension.

The maximum weekly rates of economic pensions are £2 12s. 6d. to a member, £1 7s. 6d. to a widow under 40 years who has never had a child, and £1 12s. 6d. to any other widow, both of the latter payments being in addition to the normal widow's pension. A partially dependent widowed mother of a deceased member may be granted an economic pension of an amount not exceeding £1 7s. 6d. a week in addition to her ordinary pension. In the case of total dependency on one son or partial dependency on two or more deceased sons the maximum economic pension is increased to £1 12s. 6d. a week. The provisions fixing the maximum allowable income of the widowed mother of a deceased member of the Forces were repealed by the 1950 amendment.

Servicemen pensioned for minor disabilities do not receive economic pensions.

Details of economic pensions payable at 31st March, 1950, are now given together with the totals as at the 31st March, 1949. The figures contained therein are included in the tables shown under the preceding sub-heading.

Class of Pension.First World War, 1914–18.Second World War, 1939–45.
Number.Annual Value.NumberAnnual Value.
  £ £
Ex-members with permanent pensions3,394368,94238442,053
Ex-members with temporary pensions434,77087797,632
Widows1,36185,81776247,105
Widowed mothers18931492,261
    Totals, as at 31st March, 19504,816460,4602,072189,051
    Totals, as at 31st March, 19494,879483,8142,247208,439

War Veterans' Allowances.—The object of the War Veterans' Allowances Act, 1935, which is now incorporated in the War Pensions Act, 1943, was to make provision for members of the Forces who, apart from any wounds or other injuries received during war service, were ageing prematurely or otherwise becoming unemployable by reason of mental or physical incapacity. The term “veteran” includes:—

  1. Any male member of the New Zealand Forces who has served as such in actual engagement with the enemy:

  2. Any female member who has served overseas as a member of the New Zealand Forces:

  3. Any other person who, being domiciled in New Zealand at the commencement of any war in which members of the New Zealand Forces have served as such, has served in that war as a member of any of His Majesty's Forces, other than the New Zealand Forces, with a unit in actual engagement with the enemy.

A condition precedent to the granting of a war veteran's allowance is a minimum of five years' continuous residence in New Zealand immediately preceding the date of the claim. Continuous residence is not deemed to be interrupted by occasional absences not exceeding six months in the aggregate.

Whether or not a claimant for an allowance is unfit for permanent employment by reason of mental or physical infirmity is a question of fact to be determined by the War Pensions Board. Claimants have the right of appeal to the War Pensions Appeal Board.

The War Pensions Amendment Acts, 1945, 1947, 1949, and 1950 provided for increases in war veterans' allowances, and the rates at present payable (March, 1951) are as follows:—

  1. Male veteran without a wife: £149 10s. per annum, diminished by £1 for every complete £1 of his annual income (exclusive of this allowance) in excess of £78:

  2. Male veteran with a wife.: £149 10s. per annum in respect of the veteran's personal claim, £149 10s. in respect of his wife, diminished by £1 for every complete £1 of their combined annual income (exclusive of this allowance) in excess of £78:

  3. Female veteran without a husband: £149 10s. per annum, diminished as in (1) above:

  4. Other female veteran, £149 10s. in respect of her personal claim, diminished by £1 for every complete £1 of the combined annual income (exclusive of this allowance) of the veteran and her husband, in excess of £130.

The 1950 amendment authorizes the War Pensions Board in computing any war veteran's allowance to take no account of the personal earnings of any woman from domestic service in a private home up to £78 per year.

Where a veteran in receipt of an allowance dies leaving a widow in respect of whom an allowance is also being paid, a gratuity not exceeding twice the total annual allowance in force (in respect of the veteran and his wife) at date of death may, at the discretion of the board, be granted.

In conformity with the policy of granting family benefits under the Social Security Act, the War Pensions Amendment Act, 1945, abolished war veterans' allowances in respect of dependent children, and from 1st October, 1945, these allowances have been paid by way of family benefit.

The number of war veterans' allowances in force at the 31st March increased from 3,367 in 1949 to 3,997 in 1950, expenditure rising from a figure of £562,634 in 1948–49 to £743,999 in 1949–50.

Emergency Reserve Corps Pensions.—The War Pensions Act, 1943, incorporated that part of the Finance Act, 1940, which made provision for pensions to members of the Emergency Reserve Corps, established under the Emergency Reserve Corps Regulations 1940. These pensions are payable where death or disablement was suffered in the course of service, including training, as a member or was directly attributable to such service.

The rates of pension in respect of the death of a male member are the same as those prescribed for a private in the Army—viz., £2 10s. per week to the widow, plus a mothers' allowance of £2 per week to a widow with a dependent child or children, together with 10s. per week in respect of each dependent child. In respect of total disablement, the maximum weekly rates are £1 15s. for an unmarried member under twenty-one years of age and £3 10s. per week for other members, plus £1 12s. 6d. per week for a wife with no dependent child or £2 2s. 6d. per week for a wife with a dependent child or children, plus 10s. per week in respect of each dependent child. Pensions in respect of partial disablement are determined in each case by the War Pensions Board. An economic pension may also be granted.

As in the case of war pensions, the amount payable to a dependant other than a wife or child is limited to the average weekly value of the benefits received from the member during the period of twelve months immediately preceding the date of death or disablement, as the case may be. The 10s. per child may be paid-either as a family benefit or, if so desired, as a pension.

At the 31st March, 1950, there were 11 pensions in force, as against 10 in 1949. Expenditure totalled £1,588 for the later year, and £1,447 in the 1948–49 year.

South African Veterans' War Pensions.—The original authority for the payment of pensions in respect of service in the South African War was the Defence Act, 1909, but the Finance Act (No. 4), 1940, provided that pensions might be granted under Part III of the War Pensions Extension Act, 1940, in respect of death or disablement suffered by members of any New Zealand Contingent who served in South Africa in connection with the South African War As previously stated, the War Pensions Extension Act, 1940, was repealed by the War Pensions Act, 1943, and pensions to veterans of the South African War are now payable under the general authority of the latter with its amendments. The provisions of the Act are now extended to include a member who served in any of His Majesty's Forces in the South African War if he had been born in New Zealand or was domiciled therein at the commencement of the war.

In addition to war pensions, a South African veteran who is in receipt of an age-benefit under the Social Security Act may receive an additional benefit of £13 13s. per annum, provided that his total income, including pension, does not exceed £227 10s. per annum. Such payments are included with social-security benefits and not with war pensions.

The number of South African War Pensions in force at the 31st March, 1950, at 39, showed a decrease of 2 on the 1949 figure, and a fall in expenditure from the 1948–49 total of £3,892 to £3,826 in the 1949–50 year.

Mercantile Marine Pensions.—The War Pensions and Allowances (Mercantile Marine) Act, 1940, made provision for the payment of pensions and allowances to members of the New Zealand mercantile marine and their dependants in respect of death, disablement, or detention suffered as a result of the Second World War, this being a now departure as far as New Zealand's war-pension legislation is concerned. An amendment passed in 1943 extended the scope of the Act to permit of pensions being paid to members of any mercantile marine who are in receipt of similar pensions or allowances from any other Government within the British Commonwealth, provided that such members were, immediately prior to the commencement of the war, bona fide residents of New Zealand. A claimant under this new provision must be actually resident in New Zealand, and the amount of pension or allowance that may be granted is limited to a sum which, together with the amount granted out of New Zealand, will not exceed the pension or allowance that would have been payable had the claimant been a member of the New Zealand mercantile marine.

The maximum rates at present in force in respect of the death of a member range from £2 10s. to £3 7s. per week (according to the member's rank or rating and the tonnage of the vessel on which he was serving) for a widow without dependent children, and in the case of a widow with a dependent child or children there are additional payments of £2 per week by way of mother's allowance and 10s. per week in respect of each dependent child under sixteen years of age. In the case of total disablement, the maximum weekly rates are £3 10s. to the member, £1 12s. 6d. to a wife without a child, £2 2s. 6d. to a wife with a dependent child or children, plus 10s. per week in respect of each dependent child under sixteen years of age. The amounts payable in respect of partial disablement are determined by the War Pensions Board in each case. There are no distinctions as regards rank or rating or the tonnage of the vessel in which the member was serving in the case of disablement pensions and allowances.

Where a member suffered detention as a result of his capture or the capture of his ship, the rates of allowances payable corresponded to the pensions payable in respect of total disablement.

In all cases pensions and allowances to dependants other than to a wife or a child are limited to the value of the benefits actually received by the claimant from the member during the twelve months immediately preceding his death, disablement, or detention, as the case may be. As stated elsewhere in regard to war pensions, allowances for dependent children may be paid either by way of family benefits or by way of war pension.

Mercantile Marino pensions and allowances in force at the 31st March, 1950, numbered 24, being one more than in 1949, but expenditure on this class of benefit fell from £2,700 during 1948–49 to £2,403 during 1949–50.

War Pensions Appeal Board.—A claimant may appeal to the War Pensions Appeal Board from a decision of the War Pensions Board within six months of the date on which the decision of the latter was communicated to him. Such an appeal can only be made in so far as it consists of—

  1. The rejection of any claim for a pension in respect of the death or disablement of a member of the Forces on the ground that the death or disablement was not attributable to his service as a member of the Forces or that the condition that resulted in his death or disablement was not aggravated by such service.

  2. The assessment of a pension granted to any member of the Forces in so far as the assessment is based on medical grounds.

The Appeal Board may confirm the decision of the War Pensions Board or may grant a pension, or, within the limits prescribed by the Act, may increase or reduce the amount of any pension.

The following table summarizes the operations of the Appeal Board during the year ended 31st March, 1950, in respect to appeals under war pensions and allied legislation.

First World War, 1914–18.Second World War, 1939–45.War Pensions and Allowances (Mercantile Marine).War Veterans.Totals.
Appeals outstanding 31st March, 19492318421210
Appeals lodged, 1949–508937411465
    Totals to be dealt with11255832675
Appeals upheld2215511179
Appeals dismissed602122 274
Appeals withdrawn or struck out441 146
    Totals disposed of8640832499
Appeals outstanding, 31st March, 195026150  176
Percentage upheld25.633.033.350.035.9

MISCELLANEOUS PENSIONS.—In addition to the various classes of pensions enumerated in the foregoing part of this section there were 176 pensions at the 31st March, 1950, classed as “sundry pensions and annuities.” This class covers ex-officers of the Legislative Department, and ex-members of the Police, Defence, and Naval Forces, certain ex-members of the Legislature, and others, by way of compassionate allowance, &c.

SUPERANNUATION.—The Superannuation Act, 1947, repealed a considerable body of legislation dealing with superannuation. The former law on this subject was largely contained in the Public Service Superannuation Act. 1927 (and the Government Railways Act, 1926), which provided for payments to public servants on their retirement and embraced the State Railways, Public Service (including Police), teachers, and Stipendiary Magistrates. A general scheme which was, and still is, available to all local-authority employees is conducted by the National Provident Fund Board (refer later in this section).

Under the 1947 Act there was established the Government Superannuation Fund, which replaced (and absorbed the moneys belonging to) the former Public Service Superannuation Fund, the Teachers' Superannuation Fund, and the Government Railways Superannuation Fund. Revenues of the Government Superannuation Fund, which came into operation as from the 1st April, 1948, comprise contributions, subsidies from the Consolidated and other funds, interest accruing from the investment of moneys in the Fund, fines, all moneys that would have been paid into the three Funds mentioned if this Act had not been passed, and all other moneys that may be payable into the Fund.

Superannuation benefits are available for a greater number of persons in receipt of State emoluments than was the case under the 1927 Act. The 1947 legislation as amended in 1948 and 1950 provides for contributions from members of the Government Service, including in this term the Education Service, the Cook Islands Public Service, the Samoan Public Service, and the State Advances Corporation in addition to the Departments of State under the control of the Public Service Commission, the Railways Department, and the Post and Telegraph Department. Separate parts of the Superannuation Act, 1947, relate to the provision of superannuation for members of Parliament, permanent members of the regular Armed Forces, and for Magistrates and Maori Land Court Judges.

Contributions in the case of the Government Service range from 5 per cent. of annual salary if under thirty years of age at commencement of contributory service to 10 per cent. where age exceeds fifty years, the increase being at the rate of 1 per cent. per year for each five-year increase in age category at commencement date. Retiring-allowance is computed at the rate of one hundred and twentieth part of the annual salary for each year of contributory service, this amount being increased by a sum equal thereto, but in no case shall the added amount exceed £300, or be less than £3 15s. per year of contributory service. The annual salary for this purpose is deemed to be the average of that paid in each of the five years immediately preceding retirement. If a married contributor dies, whether before or alter becoming entitled to a retiring-allowance, his widow may elect to receive a refund of the amount of his contributions less any sums received by him during his lifetime, or to receive an annuity at one-half of the rate of his retiring-allowance at the time of his death or to which he would have been entitled, if he had then retired medically unfit, The amount of the widow's annuity is not to be less than £104 or greater than £300 per annum. In addition, £26 per annum is payable in respect of each child under sixteen years of age left by a deceased contributor. The above are general provisions only and need to be supplemented by reference to the Act, in which other provisions given must be considered in respect of age, length of service, sex, sickness, withdrawals, refunds, subsidiary benefits, &c. Contributions and retiring-allowances as above apply generally to permanent members of the Regular Armed Forces. Magistrates and Judges of the Maori Land Court are entitled to retiring-allowances, subject to age and length of service qualifications, equal to one-fortieth of the annual salary at the date of retirement, but in no case is the retiring-allowance to exceed two-thirds of that salary. Contributions normally are at the percentages quoted above. A member of Parliament contributes at the rate of £50 a year, but if at the date of commencement of the retiring-allowance his contributions are less than £250 he is to pay the deficiency into the Consolidated Fund within such time and in such manner as the Minister of Finance may allow. The retiring-allowance, subject to nine years of service and attainment of the age of fifty years, is at the rate of £250 a year for the first nine-year period of his service, and for each additional year of service an increase of £25, with a maximum rate of allowance of not more than £400 a year.

Details of the transactions of the Government Superannuation Fund for the first year of operation are not yet available.

Information presented in the following pages review the operations of the Teachers' Superannuation Fund and the Railways Superannuation Fund up to the date of merger of these Funds with the Government Service Superannuation Fund. Available data in respect of the Public Service Superannuation Fund and the Superannuation of Magistrates are also given. In this case the latest figures relate to the 31st March, 1947. A statement of the activities of the National Provident Fund is also appended.

Public Service Superannuation Fund.—The Public Service Superannuation scheme, which included all branches of the Public Service except the Railways Department and that part of the Education Service which came under the operations of the teachers' superannuation scheme, was brought into force on the 1st January, 1908. Certain classes of non-permanent officers could be permitted to join the Fund.

By virtue of the Finance Act (No. 2), 1942, permanent members of the Public Service could become contributors to the Fund in respect of any period of continuous temporary service immediately preceding the date of permanent appointment.

The Police Provident Fund, which was established on the 1st December, 1899, under the Police Provident Act, 1899, was merged in the Public Service Superannuation Fund on the 1st April, 1910.

The Fund was administered by a Board, and consisted of payments by contributors, interest on investments, Government subsidy, and fines imposed on public servants as such.

Persons permanently employed in the Public Service on 1st January, 1908, the date on which the Public Service Superannuation Fund came into operation, were given the option of joining the Fund, but all persons permanently employed thereafter were required to become contributors. This compulsory provision remained in operation until the passing of the Superannuation Amendment Act, 1945, which provided that contribution to the Fund was optional on the part of all persons who were first permanently appointed to the Public Service after 1st January, 1946. This amendment also stipulated that no person could join the Fund until he reached the age of twenty years. A further radical change introduced by the 1945 amendment gave a contributor the right to cease to be a contributor on giving six months' notice, at the end of which period he was entitled to receive the total amount of his contributions, without interest.

The contributions varied with the age on joining the Fund. For ages under thirty they were 5 per cent. of the salary; ages thirty and under thirty-five, 6 per cent.; thirty-five and under forty, 7 per cent.; forty and under forty-five, 8 per cent.; forty-five and under fifty, 9 per cent.; fifty and over, 10 per cent.

The 1945 amending Act provided a new basis for calculating retiring-allowances and also abolished the maximum of £300 per annum laid down by the original Act. Future retiring-allowances were calculated in accordance with the following provisions:—

  1. For every year of service the contributor was to receive one hundred-and-twentieth part of his annual salary, and for every fraction of a year of service the contributor was to receive a proportionate part of one hundred-and-twentieth of his annual salary.

  2. The annual amount of the retiring-allowance payable under paragraph (a) was to be increased by an amount equal thereto, but in no case should the amount added under this paragraph be less than £3 15s. for each year of service or more than £300.

For the purpose of computing the retiring-allowance to be granted to a contributor, his annual rate of pay was to be deemed to be the average rate of pay received by him during the five years immediately preceding his retirement, or if his service was not continued for five years, then during his period of service.

The 1945 amendment increased the pension payable to the widow of a contributor or pensioner during widowhood from £31 to £52 per annum, and extended the age from fourteen years to sixteen years for dependent children in respect of whom an allowance of £26 per annum was payable. In certain cases this age could be extended to eighteen years. The 1947 Act made much more generous provision for the widow of a deceased contributor (see page 550).

The retiring age was sixty-five years, but contributors might retire after forty years' service. Females could retire after thirty years' service or at the age of fifty-five. In certain cases, and subject to certain terms and conditions, the Minister in charge of a contributor's Department might reduce the retiring age to sixty years for males and fifty years for females, or reduce the requisite service to thirty-five years irrespective of age, or reduce the retiring-age to fifty-five years if length of service was not less than thirty years.

From 1931, the retiring qualifications were modified to permit of a further reduction of five years in age or service in the case of contributors compulsorily retired through no fault of their own. Prior to the operation of the Superannuation Amendment Act, 1945, a specially computed reduced superannuation was provided in such cases, but the retiring-allowance was later computed as if the retirement had been on the ground of being medically unfit for further duty. The provisions covered the three major Funds.

At the 31st March, 1947, there were 26,925 contributors, paying £406,809 per annum into the Fund. The pensioners at the same date numbered 5,413, and were entitled to £930,919 per annum, made up as follows:—

Number.Pensions.
Males.Females.Total.
    £
Retired for age or length of service2,4094692,878770,788
Retired for ill-health3857546064,509
Police injured on duty23 234,336
Widows 1,5821,58279,066
Children23423647012,220
    Totals3,0512,3625,413930,919

The following table contains particulars of the public servants who were contributing to the Fund at the 31st March, 1947, grouped according to their respective rates of contribution.

Rate per Cent.Number.Annual Salary.Annual Contributions.
Males.Females.Total.
    ££
520,8443,31224,1566,706,169335,308
61,3761061,482544,12932,648
776759826325,39222,778
831110321128,04810,244
9112311549,8334,485
102412513,4621,346
    Totals23,4343,49126,9257,767,033406,809

Accumulated funds at the 31st, March, 1947, amounted to £2,984,394. Total assets, which amounted to £3,168,363, included: investments, £2,963,288; interest, due and accrued, £36,124; contributions in course of transmission, &c., £162,284; cash in hand and at bank, £5,141. The investment figures do not include £29,286 invested on Stipendiary Magistrates' account.

In his report on the Fund as at 31st March, 1939, more particulars of which may be found in the 1942 issue of the Year-Book, the Government Actuary stated that the estimated subsidy required during each of the years 1940–44 was £357,000 per annum, to which should be added a further £216,000 per annum on account of subsidies short paid in past years.

The subsidy to the Fund was originally £20,000 per annum, rising in 1910 to £22,500, and in the next two years to £23,000. In 1913 it was increased to £48,000, and in 1919 to £86,000. In consequence of the position disclosed by the Actuary as at 31st December, 1919, an additional amount of £100,000 was contributed to the Fund by the Government, divided between the years 1923–24 and 1924–25. An additional amount of £100,000 was also paid in 1929–30, following the actuarial investigation as at 31st March, 1927; while, commencing with 1932–33, additional amounts were paid each year, mainly to compensate the Fund for losses incurred as a direct result of the statutory reduction in interest. The total subsidies paid to the Fund from its inception to 31st March, 1947, amounted to £4,327,657, which included £451,265 to cover increased allowances to widows and children under authority of section 114, Public Service Superannuation Act, 1927. The total amount paid by Treasury to compensate for the statutory reduction in interest was £252,034. This amount is not included with subsidies.

All valuations of the Fund prior to 1924 were made on the basis of interest at 4 per cent., a 4½-per-cent. rate being adopted for the next three periods. As the effective rate of interest earned on the funds had been steadily decreasing since the 1934 valuation and was then considerably below the 4½-per-cent. mark, a 4-per-cent. rate was adopted for the latest valuation. The average rate of interest earned in each of the last ten financial years was as follows:—

Year Ended 31st March,Average Rate per Cent.
 £s.d.
19384151
1939452
1940414
1941449
1942463
1943433
1944404
19453195
1946444
1947427

The total revenue of the Fund for the year ended 31st March, 1947, was £879,008, including members' contributions £541,106, interest on investments and on contributions £123,503 (which included a special payment of £10,174 from the Consolidated Fund to reimburse the Superannuation Fund on account of the statutory reduction of interest on all classes of securities), and Government subsidy £209,308, the last-mentioned including a special payment of £59,327 on account of increased benefits to widows and children. The total amount expended during the year was £1,233,392, including retiring and other allowances £881,155, refunds of contributions £336,078, transfers to other funds £4,786, cost of administration £10,504 and other expenditure £869.

A table is now given showing the progress of the Fund for the last five years available.

Year Ended 31st March,Number of Contributors.Annual Contributions.Interest receivable from investments.Contributions from Government.Annual Value of Allowances.Accumulated Fund.
  £££££
194330,541421,006133,547149,084602,5703,378,602
194439,873468,081136,129157,598625,1043,441,435
194530,531454,163131,222151,712705,9823,477,914
194629,521438,983134,663161,950842,7283,338,779
194726,925406,809123,503211,698930,9192,984,395

The Public Service Superannuation Fund was abolished from the 1st April, 1948, its moneys being transferred to the Government Service Superannuation Fund as from that date.

Teachers' Superannuation Fund.—The scheme of superannuation for teachers came into operation on 1st January, 1.906. The benefits were brought into line with those of the Public Service Superannuation Fund in 1908, existing contributors having, however, the right of electing to remain subject to the provisions formerly in force. The provisions in regard to optional contribution, the right to cease to be a contributor, the amended method of computing retiring-allowances, &c., introduced by the Superannuation Amendment Act, 1945, and described in connection with the Public Service Superannuation Fund, applied with equal force to the Teachers' Superannuation Fund.

There were a few slight differences between the Public Service and the Teachers' Funds, the chief being that where teachers' back service was recognized it need not have been continuous, and that a contributor was not deemed to have retired from the Education Service by reason of unemployment unless the unemployment extended for twelve months, or unless the contributor deliberately retired from the Service as distinct from a particular position in the Service. In certain circumstances the period of twelve months could be extended by the Board.

The Finance Act (No. 2), 1943, gave permanent members of the Education Service the right to elect to become contributors, to the Teachers' Superannuation Fund in respect of any period of continuous temporary service immediately preceding the date of permanent appointment. Similar rights were conferred on contributors to the Public Service Superannuation Fund by the Finance Act (No. 2), 1942.

The expenditure of the Fund for the period 1st April, 1946, to the 31st March, 1948, was £1,702,610, of which retiring and other allowances represented £1,451,831, and refunds of contributions £226,640. The revenue for the period was £1,911,226.

On the 31st March, 1948, there were 10,714 contributors.

The retiring and other allowances as at 31st March, 1948, were made up of:—

 Number.Pensions.
  £
Retired for age or length of service1,857399,925
Retired for ill-health34049,150
Widows40513,317
Children1273,302
    Total2,729£465,694

The progress of the Fund during the last eight years is shown in the following table.

Year Ended 31st January,Number of Contributors.Amount of Contributions received.Interest received.Government Subsidy.Amount paid in Allowances.Accumulated Fund.
  £££££
19419,463170,29742,021166,917333,459974,885
19429,827173,50842,362155,627350,188954,640
194310,212177,47641,896159,806351,870944,337
194410,668192,36451,997146,756358,675933,803
194511,180189,68441,062137,938374,584879,994
194611,165782,887123,695993,2301,451,8311,088,610
194710,731
194810,555     
1948 (31st March)10,714     

Since the inception of the scheme the Government has paid £3,909,152 in subsidies to the Fund. As from the 1st April, 1948, this Fund was amalgamated with the Government Service Superannuation Fund.

Government Railways Superannuation Fund.—The Government Railways Superannuation Fund was established on the 1st January, 1903, by the Government Railways Superannuation Fund Act, 1902, subsequently embodied in the Government Railways Act, 1926, and included under the Government Superannuation Fund by the Superannuation Act, 1947.

The general conditions in regard to retiring-allowances, &c., were the same as for the Public Service and Teachers' Superannuation Funds, except that in the Railways Department a male contributor might retire at sixty years of age although he had completed less than forty years contributory service.

From 1st April, 1924, the moneys belonging to the Fund were separately invested by the Public Trustee. The average rate of interest earned during the year 1947–48 was 3.5 per cent.

The income for the year 1947–48 totalled £1,272,205, including members' contributions, £277,074; interest, £20,045; subsidies from Railways Department, £396,106 (including £56,984 on account of increased allowances to widows and children, and £91,118 for the cost-of-living bonus); Consolidated Fund—from Treasury, £81.500, and from vote Department of Internal Affairs, £497,000.

The expenditure during the year amounted to £1,187,621, of which retiring-allowances to members represented £815,231; cost-of-living bonus, £91,118; allowances to widows and children, £89,718; refunds of contributions, £102,358; and withdrawal of contributions, £89,196.

At the 31st March, 1948, there were 5,593 persons receiving allowances involving an annual liability of £877,295 on the Fund.

The progress of the Fund during the last five years is shown below.

Year Ended 31st March,Number of Contributors.Amount received from Contributors.Interest earned by Fund.Amount received from Government.Amount paid in Allowances.Accumulated Fund.
 ££££££
194417,570242,32258,652282,673559,8981,151,546
194518,018277,26057,827352,274659,1341,130,936
194616,985328,10853,162349,251701,1971,080,778
194714,013295,47851,778373,547895,056473,090
194812,180277,07420,045974,606996,067557,674

In accordance with the provisions of the Superannuation Act, 1947, the Government Railways Superannuation Fund ceased to exist as a separate entity on 31st March, 1948, and its assets and liabilities have been taken over by the newly established Government Superannuation Fund.

Superannuation of Magistrates.—The scheme for Magistrates provided for the same rates of contribution as under the Public Service scheme, but gave an annual retiring-allowance for each year of service (whether continuous or not) equal to one-fortieth of the annual salary receivable at the date of retirement, with, however, a limit of two-thirds. The retiring-age was sixty-eight, instead of sixty-five as in the case of the Public Service scheme.

Members' contributions during the year ended 31st March, 1947, the figures for 1946 being in parentheses, totalled £2,077 (£1,917), and interest on investments amounted to £1,034 (£1,145), making the revenue £3,111 (£3,062), exclusive of Government subsidy. Expenditure for the year totalled £5,624 (£5,122), of which retiring-allowances accounted for £5,578 (£5,032), and administration expenses £42 (£37). The assets of the Fund amounted to £29,286 (£26,826).

NATIONAL PROVIDENT FUND.—The National Provident Fund established by Act in 1910 came into operation on the 1st March, 1911. The Fund is administered by a Board comprising the Minister of Finance as Chairman, the Secretary to the Treasury, the Director-General of Health, the Valuer-General, the Superintendent of the Fund, and two other members appointed by and holding tenure of office during the pleasure of the Governor-General. The present legislative authority is contained in the National Provident Fund Act, 1950, which consolidated and amended previous legislation on this subject.

In addition to guaranteeing the benefits payable under the Act, the State provides a subsidy to the extent of one-fourth of the contributions paid into the Fund, and also meets the administrative expenses of the Fund.

The latest actuarial advices disclose that no additional State subsidy is required.

The Fund provides two distinct services:—

  1. Pensions and subsidiary benefits for members of the general public, with extensions for members of approved friendly societies and employees of firms, &c.

  2. Superannuation for employees of local authorities and other statutory bodies.

Membership of the public portion of the Fund is open to any person between the ages of sixteen and forty-nine years resident in New Zealand. No medical examination is required on entry, and the method of joining is extremely simple; the applicant fills in a form at any money-order post-office, or local office of the Fund, and pays a first contribution. Subsequent contributions may be met by deduction from salary, wages, or savings-bank account; a liberal discount is allowed where contributions are paid 157 weeks or more in advance.

Contributions for each 10s. step of weekly pension range from 9d. per week for persons joining the fund at age sixteen to 9s. 4d. per week for persons joining at age forty-nine; full subsidiary benefits attach to the first step pension. Any person under fifty years of age may elect to increase the rate of contribution in accordance with attained age at date of election, so as to increase the rate of his prospective pension.

The following benefits are payable:—

  • *(1) On Incapacity of Contributor.—After five years' membership, for the fourth and subsequent months of total incapacity for work, an allowance of 10s. per week for each child under sixteen years of age. No contributions are payable while in receipt of this allowance, which abates in respect of other income in excess of £5 per week.

  • *(2) On Death of a Contributor.—After five years' membership, an allowance of 10s. per week for each child under sixteen years of age, and 10s. for the widow so long as any child is under sixteen years of age.

  • (3) On reaching age sixty (or sixty-five, with reduced contribution or increased pension rates) pensions ranging from 10s. to 120s. per week according to the scale of contributions; options as to joint and survivorship pensions and for refund of contributions in lieu of pensions are provided.

  • (4) On withdrawal, lapse, or death leaving no children under sixteen, a refund to contributor or to personal representative of all contributions paid, less any benefits theretofore received.

* If the child remains at school, these allowances may be continued up to attainment of age eighteen years.

The provisions in the Act for the payment of a maternity allowance (a State grant) on the birth of a child of a qualified contributor or of a member of an approved Friendly Society have now been largely superseded by the maternity benefits provided under the Social Security Act.

The scope of the Fund was extended in 1914, the Board being empowered to entertain applications by local authorities for superannuation on behalf of their employees. In 1926 Hospital Boards became contributors on behalf of their nursing and clerical employees. With the consent of the Minister of Finance, State Departments also contribute for nurses in the same manner as Hospital Boards, thus facilitating their transfer anywhere within the health services without loss of pension rights.

To achieve uniformity in benefits and to make improved conditions of superannuation available to permanent employees of all local authorities, the Board was empowered in 1946 to vary the conditions and benefits in the original schemes and to issue a notice to all local authorities containing conditions and benefits under which any permanent employee might elect to become a contributing employee. Funds established under the authority of the Local Authorities Superannuation Act, 1908, have been merged with the National Provident Fund, and there is now operating one uniform superannuation scheme to which all local authorities in New Zealand contribute; employees may move freely from employment in one local authority to another without sacrifice of accrued superannuation benefits.

The principle of voluntary membership previously introduced into State schemes was also extended to the National Provident Fund and provision made for the recognition, by agreement with the employing local authority, of local-authority service within the British Commonwealth or within New Zealand.

The benefits and contributions are similar to those operating in the Government Superannuation Fund, and there is provision whereby employees may transfer from local authority to State employment, and vice versa, without loss of accrued rights.

On retirement there are several options as to joint and survivorship or variable pensions which enable the income payable after retirement being arranged to meet individual needs.

The Fund is now the approved superannuation vehicle for statutory corporations and also provides facilities whereby registered educational institutions may provide superannuation for teachers, thus removing another artificial barrier to the free interchange of teachers in the educational services.

Since the inauguration of the Fund in 1911, 135,742 persons (95,780 males, 39,962 females) have joined the Fund, and of these 111,927 (76,763 males and 35,164 females) have discontinued for one reason or another, leaving 23,815 (19,017 males and 4,798 females) contributors at 31st December, 1949. Of the 3,675 discontinuances in 1949, 2,777 were on account of withdrawal, 373 on account of lapse or cancellation, 70 on account of death, 302 on account of attainment of pension age, and 153 on account of transfer.

The numbers of contributors for the various pension rates as at 31st December, 1949, were as follows:—

Pensions.Male.Females.Total.
10s. per week10,23557010,805
20s. per week2,1613142,475
30s. per week20548253
40s. per week588122710
Superannuation5,8283,7449,572
    Totals19,0174,79823,815

Summarized figures set out below for the years ended 31st December, 1939, 1944, and 1949, form a useful basis for comparative analysis. Increased contributions and total income figures are attributable to expansion in the superannuation branch.

Year Ended 31st December.
1939.1944.1949.
New contributors2,9972,8562,881
Total of contributors28,72928,05423,815
Pensioners9351,4622,316
 £££
Contributions299,308357,887665,778
Interest (including fines)213,054271,155338,515
Total income (including State subsidy)632,128754,6731,188,188
Pension payments82,353118,900226,173
Other benefits188,521192,755263,327
Total payments273,971314,977492,423
Funds at end of year5,648,4157,732,83310,877,619
Rate of interest per cent. earned on invested funds£3 18s. 3d.£3 12s. 9d.£3 4s. 11d.

The amount of the subsidy paid by the State on contributions paid to the Fund during 1949 was £159,891.

The next table presents an alternative comparison, the period covered on this occasion being the five years ended 31st December, 1949.

Year.Number of Contributors.Annual Rate of Contributions Payable.Total Amount of Fund.Claims During Year.
Incapacity.Retiring.Widows' and Children's.
  £££££
194527,788361,6418,116,04411,254126,51713,835
194627,405398,8468,985,36013,687143,65814,352
194725,722422,8719,586,61113,399168,37631,483
194824,456468,56510,181,85413,806203,00445,348
194923,815528,52010,877,61913,285226,17350,616

Of the accumulated fund of £10,877,619 at 31st December, 1949, £10,678,482 was invested, mainly in Government securities.

Chapter 27. SECTION 27—LOCAL GOVERNMENT

LOCAL government throughout New Zealand is exercised by a number of local authorities constituted under various Acts of Parliament. These Acts provide for the creation of districts over which the local authorities exercise jurisdiction. Different types of district are distinguishable, each type being identified with a specific function or group of functions. Geographically, New Zealand is divided into 129 counties, which comprise its total area, except for certain small islands which are not included within the boundaries of the adjacent counties. Administratively, boroughs and independent town districts, which are contained within the areas of the several counties, are regarded as separate entities. From an administrative point of view, therefore, the fundamental districts are counties, boroughs, and independent town districts. Upon this foundation a considerable superstructure of districts of other types has been erected. These overlapping districts may be divided into two broad classes, viz.: (1) Districts formed from parts of counties—e.g., road districts; and (2) those which are comprised of a group of adjacent districts of other types united for a common purpose—e.g., electric-power districts. The number of local authorities actively functioning at the 1st April, 1949, was 706, made up as follows; County Councils, 125; Borough (including City) Councils, 134; Town Boards (independent), 29; Town Boards (dependent), 18; Road Boards, 7; River Boards, 22; Catchment Boards, 12; Land-drainage Boards, 46; Urban Drainage Boards, 4; Water-supply Boards, 2; Fire Boards, 60; Local Railway Board, 1; Harbour Boards (including 23 where the Board is a Borough or County Council, &c.), 47; Electric-power Boards, 43; Hospital Boards, 42; Tramway Board, 1; Transport Board, 1; Gas Board, 1; and Rabbit Boards, 111. In addition to the foregoing there were 35 Milk Authorities constituted by 1st April, 1949, under the Milk Act, 1944, which is referred to later, 2 Nassella Tussock Boards under the Nassella Tussock Act, 1946, and 18 District Councils of the Main Highways Board constituted under the Main Highways Act, 1922. These District Councils of the Main Highways Board, although not local authorities in the strict sense of the term, are nevertheless intimately connected with certain aspects of local government, and have power to make recommendations of considerable importance.

The Soil Conservation and Rivers Control Act, 1941, as amended in 1945, 1946, 1947, and 1948, has for its objects the conservation of soil resources, the prevention of damage by erosion, and the making of more adequate provision than in the past for protection of property from damage by floods. A Soil Conservation and Rivers Control Council is established for the general administration of the Act, while for local administration power is given for the constitution of catchment districts, each covering the catchment area of one or more river systems and under the control of a Catchment Board, which is armed with wide powers, including borrowing, rating, &c. To date (1st April, 1949) twelve catchment districts have been created, of which eleven were actively functioning at that date.

Under the Milk Act, 1944, as amended in 1945 and 1947, the Governor-General may by Order in Council constitute and declare any part or parts of New Zealand a milk district for the purpose of ensuring to the inhabitants of that district an adequate supply of milk of a required standard of quality. The principal Act provided that for every milk district there shall be a Milk Authority which may be a Borough Council or a Metropolitan Milk Board, as circumstances require. In any case where the Milk Authority is a Borough Council, the Council is required to appoint a Standing Committee, known as the Milk Committee, and provision is made for the appointment of other persons to the Committee where the milk district includes any area outside the borough. Where the Milk Authority is a Metropolitan Milk Board, the members thereof are elected by the constituent districts comprising the milk district. The Milk Amendment Act, 1947, provides for the constitution of a District Milk Board in any case where the Council of any borough has declined to be the Milk Authority or where there is no borough situated wholly or partly within the district and it is found to be impracticable to establish a Metropolitan Milk Board. The members of a District Milk Board are appointed by the Governor-General from members of local authorities situated wholly or partly within the particular milk district.

The number of Milk Authorities constituted as at 1st April, 1949, was 35, of which a Metropolitan Milk Board was the authority in 5 cases, a Milk Board in 3 cases, and a Borough Council in 27 cases.

Nassella Tussock Boards have been constituted in Marlborough and North Canterbury under the Nassella Tussock Act, 1946, to make provision for the control and eradication of the plant known as nassella tussock.

Detailed statistics relating to each local authority, other than Hospital Boards, are contained in the Local Authorities Handbook, an annual publication of the Census and Statistics Department. Hospital Boards, which supply their returns in different form, and to the Department of Health, are omitted from the statistics contained in this section, but summarized data relating to them will be found in Section 5B.

The local-authority year now uniformly ends on 31st March, except in the case of most Harbour Boards. In certain cases where the harbour is administered by a County or Borough Council, the year ends on 31st March, but in all other cases on 30th September.

The history of local government in New Zealand may be conveniently divided into two periods associated with two distinct forms of administration, namely—(1) The provincial system, in which the local government of each province was a function of the provincial authorities; and (2) the present county system, which arose on the abolition of the provinces in 1876, and in which the general responsibility for the local government of the whole country was undertaken by the Central Government.

THE PROVINCES.—Although New Zealand was at first (1848) divided into the two provinces of New Ulster and New Munster, it was not until 1853 that the provincial system really commenced. In that year, the two existing provinces were abolished and the colony was divided into the six provinces of Auckland, New Plymouth (altered to Taranaki in 1859), Wellington, Nelson. Canterbury, and Otago. The number was later increased to nine by the separation of Hawke's Bay from Wellington (1859), Marlborough from Nelson (1860), and Southland from Otago (1861). Subsequently it was reduced to eight by the merging of Southland with Otago (1870), and restored to nine again by the separation of Westland from Canterbury in 1874, Westland having been a county independent of Canterbury from 1867. Each province was presided over by a Superintendent and Council, with power to legislate for its own territory, subject, however, to disallowance by the Governor, and also to the exclusion of such matters as Customs duties, postal affairs, Crown lands, superior Courts of law, coinage, and paper currency, which were to be controlled by the General Assembly (Central Government). The provinces received from the Central Government a capitation allowance for the maintenance of harbours, hospitals, asylums, charitable aid, and police; while each province was expected to provide for the construction and maintenance of roads, bridges, and other public works out of its own revenues, which were derived chiefly from the sale of waste lands.

The Provincial Councils, therefore, were virtually left with the whole responsibility of providing for the details of local administration. The Councils in turn delegated certain of their powers and functions to lesser authorities, and a number of boroughs, towns, road, and highway districts came into being. Owing, however, to the lack of uniformity between the Ordinances of the various Councils on the subject of local government, considerable confusion arose and rendered impossible any satisfactory co-ordination beyond provincial boundaries. Thus main roads were frequently planned without sufficient regard to the linking-up of the country as a whole. With the rapidly increasing population, and consequent extension of settlements, the need for the development of communications along national instead of provincial lines became apparent. That the provinces had definitely outlived the period of their usefulness became abundantly clear during the prosecution of the Vogel policy of immigration and public works initiated in 1870, and in 1875 the Abolition of Provinces Act was passed in the face of strong provincial opposition.

CONSTITUTION OF LOCAL DISTRICTS.—In 1876 local government entered upon an entirely new phase, the Central Government assuming the general responsibility for the local administration of the whole country. All existing legislation on the subject was repealed and new measures were introduced, notably the Counties Act, 1876, which divided the country into sixty-three counties, with provision for administration by elective Councils having powers considerably less than those enjoyed by the Provincial Councils. Another important enactment of the same year was the Municipal Corporations Act, which provided for the incorporation of the thirty-six boroughs then in existence and for the creation of new boroughs. The powers of municipalities were also extended, permitting the construction of tramways, waterworks, and gasworks, while the borrowing-powers of boroughs were placed on a definite and uniform footing. While these measures have long since been repealed, it is upon them that the broad structure of the present system is based.

Since the inception of the county system there has been a great expansion of local government throughout New Zealand. With the growth of population there has been a steady increase in the number of counties, boroughs, and town districts, while entirely new types of districts have been created to cater for special services. A description of each type of local authority may be found in the 1940 and previous issues of the Year-Book.

FRANCHISE.—The franchise in local government is a variable one, differing materially in certain respects as between urban and country districts. Prior to the passing of the Local Elections and Polls Amendment Act, 1941, the county franchise was based solely on property qualification, with a differential voting-power according to the value of property possessed, whereas in boroughs and town districts every adult possessing the necessary residential qualifications was entitled to be enrolled as an elector for the election of the local-governing authority. On any proposal relating to loans or rates, however, a ratepaying qualification was, and still is, necessary. The Amending Act of 1941 made provision for tenants of State houses to be enrolled as electors as if they were ratepayers, but it entitled such persons to one vote only and conferred no voting powers in connection with any proposal relating to loans or rates.

An amendment passed in 1944 further extended the franchise in counties and road districts to include a residential qualification on the same lines as for boroughs, but did not interfere with the multiple voting power conferred by a property qualification. One vote only is allowed in boroughs and town districts, but it is possible, by virtue of property qualification, to have a vote in more than one district. The 1944 amendment introduced compulsory registration of electors for boroughs and town districts, all adult persons not entitled to enrolment by virtue of a property qualification being required to make application for enrolment within a prescribed time. The Act also removed the disability which prevented persons in the employ of local authorities from becoming members thereof. The Local Elections and Polls Amendment Act, 1946, provided that all general elections of local authorities were to be held on the third Wednesday in November of the year in which such elections were due, instead of in May as hitherto. The Amendment Act of 1950 altered this to the third Saturday in November. It also abolished the provisions of the 1946 Amendment that any person could be entered on the local authority roll whose name appeared on the parliamentary roll with an address in that authority's district provided he or she had a residential qualification, and that, if not so entered, he or she could vote by declaration. Details of the franchise as it affects each type of local district are now given.

Counties.—Any person of twenty-one years of age and over who possesses any one of the qualifications mentioned hereunder is entitled to be enrolled on the county electors roll:—

  1. Rating qualification, which may be held by any person whose name appears in the valuation roll as the occupier of any rateable property within a riding of the county. One vote is allowed where the rateable value does not exceed £1,000, two votes where the value is greater than £1,000 but not in excess of £2,000, and three votes where the value exceeds £2,000.

  2. A residential qualification is held by any British subject who has resided for one year in New Zealand and has had permanent residence of not less than three months in the riding of the county to which the roll relates.

  3. The possession of a miner's right entitles a person to enrolment provided (a) the holder also holds a mining privilege and is actively engaged in mining, (b) he is resident in the riding of the county and has been continuously so resident for two months immediately preceding the nomination of candidates. The residential or the miner's right qualification entitles the holder to one vote only.

Boroughs.—Any person of twenty-one years of age and over who possesses any of the following qualifications is entitled to enrolment:—

  1. Freehold qualification—meaning the beneficial and duly registered ownership of a freehold estate in land of a capital value of not less than £25 situated in the borough, notwithstanding that any other person is the occupier thereof.

  2. Rating qualification, which may be held by any person whose name appears in the valuation roll as the occupier of any rateable property within the borough.

  3. A residential qualification may be held by any British subject who has resided for one year in New Zealand and who has had permanent residence during the last three months in the borough to which the roll relates.

An occupier's qualification, previously valid, was abolished by the Local Elections and Polls Amendment Act, 1946.

As already stated, no person is entitled to vote at a poll taken on any proposal relating to loans or rates by virtue only of a residential qualification.

Town Districts.—The franchise is the same as for boroughs, except that for county electoral purposes in the case of dependent town districts the county qualification is necessary.

Rabbit Districts.—The franchise is based on stock ownership, from one to five votes being allowed according to the number of stock units owned. A sheep is counted as one unit and cattle as five units each. For up to 5,000 units one vote is allowed; over 5,000 but not exceeding 10,000, two votes; over 10,000 but not exceeding 20,000, three votes; over 20,000, but not exceeding 30,000, four votes; over 30,000, five votes.

Other Districts.—Road districts, river districts, land-drainage districts, water-supply districts, and the local railway district all have a franchise similar to that of counties except that the residential qualification applies to road districts only.

Districts composed of a grouping of districts of other types united for a common purpose have a franchise as for the component districts. Such districts are urban drainage districts, electric-power districts, harbour districts, hospital districts, urban transport districts, catchment districts, and the gas district. In some cases—e.g., the Auckland and Hutt Valley Drainage Boards—the members are appointed or elected by the territorial local authorities included in the district.

In addition to elected members, the constitution of Harbour Boards provided in most cases for certain nominated or appointed members (representatives of the Government, the waterfront industry, and the payers of harbour dues), but the Harbours Act, 1950, which consolidated and amended previous legislation, provides that every Harbour Board shall now consist of members elected by the electors of constituent local authorities only.

GENERAL POWERS.—Local authorities in New Zealand derive their powers from the Acts under which they are constituted, and also from special empowering Acts. In addition to legislation providing for particular types of local authority or for individual local authorities, there are several statutory measures which are more or less applicable to all local authorities, such as the Local Elections and Polls Act, 1925, and the Local Bodies' Loans Act, 1926. In the case of Harbour Boards, there is in addition to a general Harbours Act a special Act for each Board, which is subordinate to the general Act. Certain types of local authority—Urban Drainage Boards, the Local Railway Board, the Tramway and Transport Boards, and the Gas Board—derive their principal powers from special constituting Acts.

Local authorities have general powers of entering into contracts for any of the purposes for which they are constituted; of selling and leasing land; and of taking or purchasing any land which may be necessary or convenient for any public work.

AMALGAMATION.—Various statutory provisions exist for the voluntary amalgamation of local authorities, and these have been availed of from time to time. There have been numerous amalgamations of contiguous boroughs, while the one-time numerous road districts which played a very important part in the scheme of local government in the essentially colonizing days of New Zealand are now largely merged in county areas. Prior to the passing of the Local Government Commission Act, 1946, no provision for compulsory amalgamation existed, although a measure entitled the Local Government (Amalgamation Schemes) Bill was introduced during the parliamentary session of 1936, but was not proceeded with.

The Local Government Commission Act, 1946, set up a Local Government Commission which is a permanent institution deemed to be a Commission of Inquiry under the Commissions of Inquiry Act, 1908, whose functions are to review from time to time the functions and districts of local authorities, and to investigate local-government boundaries in New Zealand, and recommend such changes as may be considered necessary.

The Act provided that the Commission was to consist of—

  1. A Chairman, who was required to have the qualifications necessary for appointment as a Judge of the Supreme Court, and who “as to tenure of office, salary, emoluments, and privileges would have the same rights and be subject to the same provisions as a Judge of the Supreme Court”;

  2. A member, to be appointed by the Governor-General in Council, having a “special knowledge of local government”; and

  3. Two further members to be appointed from a panel of persons nominated by the nominating Associations, one of whom shall have a special knowledge of urban local government, and the other shall have a special knowledge of rural local government.

By Proclamation of the Governor-General dated 28th January, 1947, the following Associations were declared to be nominating Associations for the purposes of the Local Government Commission Act, 1946:—

  • The Municipal Associations of New Zealand (Incorporated).

  • The New Zealand Counties' Association.

  • The Electric-power Boards' and Supply Authorities' Association of New Zealand.

  • The Hospital Boards' Association of New Zealand.

  • The Harbour Boards' Association of New Zealand.

The general functions of the Commission are set out in section 12 of the Local Government Commission Act, 1946, as follows:—

“The functions of the Commission shall be to review from time to time the functions and districts of local authorities and to inquire into proposals and prepare schemes for the reorganization thereof, and generally to review and to report to the Minister upon such matters relating to local government as may be determined by the Commission or referred to it by the Minister.”

Its powers are more specifically defined in section 13, as amended in 1947 and 1950, where it is authorized to draw up a reorganization scheme to provide for any one or more of the following matters:—

  1. The union into one district of two or more adjoining districts, whether districts of the same kind or not.

  2. The merger of any district in any other district.

  3. The constitution of a new district or districts.

  4. The abolition of any district or districts.

  5. The transfer of all or any of the functions of any local authority to any other local authority.

  6. Any alteration of the boundaries of adjoining districts.

  7. The conversion of a district into a district of a different kind.

  8. The inclusion in any district of any area adjoining that district.

  9. The exclusion of any area from any district.

  10. The dissolution of any local authority.

Subsection (3) of section 13, however, restricts the powers of the Commission in respect of trading undertakings of counties, boroughs, or Town Boards. A trading undertaking for this purpose is defined as follows:—

“‘Trading undertaking’ means any tramway service, ferry service, or other service for the conveyance of passengers or goods, any gas or electric-light undertaking, any power-supply undertaking, any milk-supply undertaking, and such other undertakings as may from time to time be declared by the Governor-General by Order in Council to be trading undertakings for the purposes of this Act.”

In so far as these trading undertakings are concerned, the Commission is prohibited from transferring the whole or any part of such trading undertakings from any county, borough, or Town Board except on the union, merger, or abolition of the district of such local-governing authority.

The effect of this provision is that the Commission, for instance, could not transfer the electric-power undertaking of a borough to a Power Board. Neither could it set up a Tramway Board to undertake the work of a tramway controlled by a Borough Council.

Most of the general enactments providing for the incorporation of specific types of local authorities provide machinery whereby adjustments of boundaries, amalgamations, and such-like reorganizations can take place.

The actual procedure of the Local Government Commission may be briefly summarized as follows:—

  1. A full investigation by its staff as to the necessity for the change proposed. Only if these investigations establish a prima facie case does the Commission proceed to the next stage.

  2. A full public notification to all parties interested, and an individual notification to all those specifically interested, at least one month before the public inquiry is held. This notification sets out in detail the proposals which the Commission is investigating, and gives an indication that all persons or parties interested may, if they so desire, submit evidence at the inquiry.

  3. A public inquiry, open to the public and the press, at which all parties have the right to submit evidence, and at which authorized representatives of the various parties have a right to examine their own witnesses and cross-examine witnesses of other parties.

  4. Verbatim reports of the evidence are prepared and distributed not only to members of the Commission, but also to the principal parties engaged in the inquiry.

  5. A report setting out the reasons for the Commission's decisions, and, where necessary, a provisional scheme, is issued to all parties concerned and is publicly notified in the press.

  6. One month's opportunity is available for objection to the provisional scheme by any interested party.

  7. A final scheme is issued and publicly notified in a manner similar to that for a provisional scheme.

  8. The final scheme is forwarded to the Minister of Internal Affairs for implementation by His Excellency the Governor-General by Order in Council.

The Act provides for objections to be raised to any provisional scheme of reorganization which the Commission may prepare, and the Commission is required to consider any such objection. Provision is also made for the taking of a poll of electors on any proposal for the union, merger, or abolition of any local governing authority. This poll may be taken on the recommendation of the Commission or, if no such recommendation is made, at the request in writing of not less than 20 per cent. of the electors of the district concerned. No scheme, on which a poll of electors is required to be taken, can be given effect to unless a majority of the valid votes recorded is in favour of the proposal.

BORROWING.—Under the Local Government Loans Board Act, 1926, all loan proposals of local authorities, except in regard to money borrowed in anticipation of revenue, require the sanction of the Local Government Loans Board. The Board consists of the Secretary to the Treasury, the Engineer-in-Chief of the Ministry of Works, and five other members appointed by the Governor-General. In cases where a poll of ratepayers is necessary preparatory to raising a loan, the Board's consent must be obtained before the poll is held. In no case may the Board sanction any application unless provision is made to its satisfaction for repayment of the loan within such period as it deems reasonable, having regard to the probable duration and continuing utility of the works: on which the loan-moneys are to be expended.

The principal legislation dealing with the borrowing-powers of local authorities is contained in the Local Bodies' Loans Act, 1926, which is mainly a consolidation of previous measures on the subject. A local authority is thereby empowered to raise a special loan for the construction of any public work, for the purchase of land or buildings, or for the purpose of engaging in any undertaking into which it may lawfully enter. As explained previously, a loan proposal first requires the sanction of the Local Government Loans Board. It must then be sanctioned by the ratepayers at a special poll (except in certain cases, provided for by various-enactments, where a poll is not required to be taken), and the proposal is not deemed to have been carried unless at least three-fifths of the valid votes recorded are in favour of it, save in the case of boroughs and town districts, where a bare majority only is necessary. The properties and revenue of the local authority may be pledged as security for the repayment of any principal sum or interest thereon, or a special rate may be levied for the same purpose

The borrowing activities of certain types of local authority are subject to special provisions. Under the Hospitals Act, 1926, a Hospital Board must first obtain the approval of the Minister of Health before exercising its power to borrow; under the Fire Services Act, 1949, the Boards of Urban Fire Authorities must obtain the prior consent of the Fire Services Council; and Rabbit Boards must first seek the approval of the Minister of Agriculture. Harbour Boards derive their authority to borrow for harbour-works from special empowering legislation, and similar authority is given for the capital works of certain other local authorities.

RATING.—Local authorities are largely dependent on revenue from rates to carry out their activities, and even loans raised for special purposes are, except where the assets purchased provide revenue to meet the loan charges, ultimately liquidated by rate revenues—known then as special rates. Three broad classes of rates are distinguished:—

  1. General, for general purposes.

  2. Separate rates levied for the construction of public works, for the acquisition of land or buildings, or for the benefit of the whole or part of a local district.

  3. Special rates imposed to secure the repayment of loan-money, being sufficient to produce interest and sinking fund, or interest and instalment of principal, as the case may be. Special rates can be levied only by resolution gazetted, and, unlike general and separate rates, are not subject to any statutory limit.

There are three main systems of rating: (1) Capital (land and improvements) value, (2) annual value, and (3) unimproved value. In a few cases rating is on an acreage basis, and in the case of certain Rabbit Boards the rate is according the number of sheep and/or cattle owned.

The Rating Act, 1925, provides that the local authority of any district (other than a district wherein the system of rating on the unimproved value is in force) may from time to time by resolution determine whether the system of rating on the annual value or on the capital value shall be in force in the district. In the case of rating on the capital value the rating roll is based on the district valuation roll prepared by the Valuation Department. Where the rating is on the annual value the local authority generally prepares its valuation roll on the basis of valuations made by its own valuers. There is, however, provision that annual values may be prepared on the basis of the annual value being equal to £6 per cent. of the capital value and also that a rate of 1s. in the pound on the annual value is equivalent to ¾d. in the pound on the capital value. (See also the section on valuation of land, immediately following.)

Rating on Unimproved Value of Land.—The Rating on Unimproved Value Act, 1896, was passed to afford local authorities the opportunity of adopting the principle of rating expressed in the title of the measure. The Act is now incorporated in the Rating Act, 1925. It is entirely at the option of the ratepayers of local districts to adopt the system, and provision is made for a return to the old system of rating, if desired, after three years' experience of the new one. The poll is taken in the same manner as in the case of a proposal to raise a loan under the Local Bodies' Loans Act, 1926. Under the original Act it was necessary for a minimum number of one-third of the ratepayers to vote, and a majority of their votes carried the proposal. Now the question of adoption or otherwise is decided by a bare majority of the valid votes recorded, irrespective of the number of ratepayers who have voted.

A rescinding proposal can be carried at a poll by the same means as one for adoption, but not until after three years have elapsed; and, vice versa, rejection of a proposal bars its being brought forward for a similar period.

It should be noted that some local authorities automatically adopt rating on unimproved value. For example, a town district, borough, or another county formed from part of a county automatically rates on the system in force in the county at the time of the constitution of the new district; also two boroughs amalgamating adopt the system in force in the district with the greater population, unless their Councils agree to the contrary.

Distribution of Rating Systems in Force.—A table is given of rating systems in force during the financial year 1947–48, in those types of districts which have power to levy rates.

System of Rating.Total.
Unimproved Value.Capital Value.Annual Value.Acreage Basis.On Stock.

*Includes Chatham Islands County, for which import and export dues are charged in lieu of rates on land.

† Includes one various.

Counties6064   125*
Boroughs891923  131
Town districts24223  49
Road districts26   8
River districts99 6 24
Catchment districts 10   10
Land-drainage districts3017 1 48
Electric-power districts1328   41
Water-supply district 1   1
Urban drainage district 21  3
Tramway district 1   1
Rabbit districts 1 1005106
    Totals227180271075547

The position in regard to the four major classes of local authorities at 1st April, 1948 (i.e., the beginning of the 1948–49 financial year) is set out in the following table.

Rating on Unimproved Value.Total for New Zealand.*Ratio of Unimproved Value to Total.
No.Population.No.Population.No.Population.

*Exclusive of migratory, &c., population.

† Includes the four counties (Eden, Taupo, Sounds, and Flord) in which the Counties Act Is not wholly in force.

     Per Cent.Per Cent.
Counties (excluding all town districts)60322,500129658,50046.5148.97
Boroughs93762,7101341,143,58069.4066.69
Town districts (independent)1315,9502926,86044.8359.38
Town districts (dependent)93,520186,79050.0051.84
Totals1751,104,6803101,835,73056.4560.18

For the purposes of the foregoing tables a district is deemed to rate on the unimproved value where the general rate is levied on an unimproved-value basis. In a number of instances, in particular of boroughs, certain of the subsidiary rates are levied on other systems.

TOWN-PLANNING.—The Town-planning Act, 1926, and its amendments provide for the making and enforcement of town, extra-urban, and regional planning schemes. Every town-planning scheme is required to have for its general purpose the development of the city or borough to which it relates (including the reconstruction of an area already built on) in such a way as to promote its healthfulness, amenity, convenience, and advancement. Extra-urban schemes have like objects in regard to their areas.

Regional planning schemes must be preceded by a comprehensive survey of the natural resources of the areas concerned, and of the present and potential uses and values of all lands in relation to public utilities or amenities. Regional schemes envisage the conservation and economic development of natural resources by classification of lands according to their best uses and by the co-ordination of all such public improvements, utilities, services, and amenities as are not limited to the territory of any one local authority.

The principal Act provided for a Director of Town-planning and a representative Town-planning Board, but the Government has since decided, instead of having a Director of Town-planning, to administer the Act through a town-planning section directly attached to the Government Department controlling town-planning—in this case the Ministry of Works. The Town-planning Board continues to operate. The Chairman of the Board, formerly the Minister of Internal Affairs, is the Minister of Works, the change having been effected by an amendment to the Act passed in 1948.

All cities or boroughs with a population of one thousand or over at the census of 1926, together with certain road districts, were required to prepare town-planning schemes and submit them to the Town-planning Board by the end of 1936. Other boroughs may be added by Order in Council, and smaller boroughs may submit schemes voluntarily. Provision is made for a combined scheme by two or more adjoining local authorities.

Counties, inclusive of smaller boroughs and of town districts, comprise rural areas for the purpose of extra-urban schemes. The authority responsible for the scheme is the County Council, or where more than one local authority is concerned a representative committee approved by the Board.

The Town-planning Amendment Act, 1948, provides that the Minister of Works may prepare and obtain approval for a town or extra-urban scheme in any case where a local authority under an obligation to prepare such a scheme fails to do so after being notified in writing, and also that a local authority may by agreement authorize the Minister to prepare and obtain approval for a scheme. In the former case the costs and expenses incurred by the Minister are recoverable from the local authority, or they may be deducted from any moneys payable from public funds to the local authority.

When a town or extra-urban scheme has been approved by the Board it is the duty of the local authorities having jurisdiction to enforce the requirements of the scheme in respect of all new works of any description. The provisions of a regional planning scheme are not obligatory, but are intended to serve as a guide to the local authorities within the region.

Under the town-planning legislation, betterment is defined as the increase in property values attributable to the approval or carrying-out of a town-planning scheme. It is provided that one-half of betterment increase in the value of rateable property constitutes a debt payable to the local authority by the owner of the land. Within prescribed limits, moneys from this source are to be applied, inter alia, to compensate persons whose lands are acquired for town- or extra-urban-planning schemes, or who are otherwise injuriously affected.

The 1948 Amendment Act provides that where a town-planning or extra-urban scheme has been approved by the Board the local authority may, with the prior approval of the Minister of Works, take, under the Public Works Act, 1928, any land in its district which, under the scheme, it considers necessary or expedient for the proper development or use of the land or for the provision or preservation of amenities. In such a case the local authority may raise a special loan for the purpose under the Local Bodies' Loans Act without the usual requirement of a poll of the ratepayers on the proposal.

HOUSING.—The Housing Survey Act, 1935, was passed in October of that year, its purpose being to ascertain the extent to which the existing housing-accommodation in New Zealand fell short of reasonable requirements. The Act applied to every borough (or city) or town district whose population was estimated by the Government Statistician to be not less than one thousand at 1st April, 1934, to two suburban road districts, and to any other local authority prescribed by Order in Council. An analysis of the results of the survey carried out under the authority of the Act is contained in the 1946 and previous issues of the Year-Book.

Under section 28 of the State Advances Corporation Act, 1936, the Corporation is empowered to make loans to local authorities for the acquisition of land for the erection of workers' dwellings, or for any other purpose in relation to workers' dwellings. As part of the Government's housing plans, finance has been made available to local authorities at an interest-rate of 3 per cent. for the purpose of erecting municipally-owned workers' dwellings for letting at low rentals. Applications by local authorities for loans under this arrangement must be approved by the Local Government Loans Board and by the Minister of Finance.

By the Rural Housing Act, 1939, local authorities are empowered to advance moneys to a farmer for the purpose of enabling him to provide a dwelling for his own use or for the use of any farm worker who is principally employed by him, the money in the first place being supplied by the State Advances Corporation (refer p. 448 of this volume).

The Local Authorities (Temporary Housing) Emergency Regulations 1944 empower local authorities to establish and maintain transit housing centres for the purpose of providing temporary accommodation for persons who are awaiting the allocation of State rental houses or the provision of other housing accommodation. Borough Councils have power to make loans for housing purposes (see page 437).

RECEIPTS.—The sources from which the various classes of local authorities secure the moneys necessary to exercise their functions vary greatly, according to the nature of the statutory duties of the local authority concerned. Generally, however, receipts fall under one of four main classes, viz.: Rates; revenue from public utilities, licences, rents, &c.; revenue receipts from the General Government; and receipts such as loan-money and special grants and subsidies from the Government which cannot properly be regarded as revenue.

The receipts of local authorities, divided into the various groups mentioned, are given for each of the last eleven years. As stated earlier, the figures quoted here and elsewhere in this section do not cover the operations of Hospital Boards.

Year Ended 31st March,Revenue fromTotal Revenue.Receipts not Revenue.Total Receipts.
Rates.Public Utilities, Licences, Rents, &c.Government.
 ££££££
19386,541,35410,542,197463,09617,546,6474,389,62021,936,267
19396,971,55011,275,084475,54218,722,1766,254,79224,976,968
19407,289,24012,188,955480,57319,958,7686,772,32726,731,095
19417,344,05512,696,676447,54020,488,2714,651,63325,139,904
19427,441,70412,955,129444,23620,841,0693,175,46724,016,536
19437,764,67713,681,289401,53321,847,4992,640,25224,487,751
19447,823,73014,751,120393,62422,968,4742,053,62925,022,103
19457,895,87115,057,508415,01923,368,3982,086,27525,454,673
19468,633,32915,393,510450,29124,477,1302,743,83727,220,967
19479,541,13316,506,818512,02926,559,9803,737,37130,297,351
19489,806,85917,212,851611,21327,630,9234,408,01432,038,937

Local authorities received by way of rates in the financial year 1947–48 a total amount of £9,806,859, and the sum of £906,773 was raised by licences, making £10,713,632 altogether from taxation, which sum is equivalent to £5 18s. 3d. per head of the mean population (including Maoris).

During 1947–48 rates formed 35.5 per cent. of the revenue proper; public utilities, licences, rents, and other sources yielded 62.3 per cent.; and 2.2 per cent. came from the General Government.

Of the revenue proper of counties, which amounted to £4,084,973 in 1947–48, no less a sum than £2,817,231, or 69 per cent., was raised by way of rates. Town districts, road districts, river districts, catchment districts, land-drainage districts, and urban drainage districts also rely on taxation for the greater part of their income. In the case of boroughs, electric-power, gas, and transport districts, and Harbour Boards, on the other hand, rates supply a considerably smaller proportion of the total revenue. During 1947–48 this source of income accounted for 43.7 per cent. of the total revenue of boroughs, the corresponding proportions for Harbour Boards, electric-power districts, and urban transport districts being 11.2 per cent., 0.04 per cent., and 2.4 per cent., respectively.

The next table shows the receipts for 1947–48 (classified as in the preceding table for each type of local authority).

Revenue fromReceipts not Revenue.Total Receipts.
Rates.Public Utilities, Licences, Rents, &c.Government.
 £££££
Counties2,817,2311,031,657236,0851,247,9175,332,890
Boroughs5,834,7547,251,164272,9091,678,11815,036,945
Town districts98,64450,8754,31741,669195,505
Road districts22,7137,3889042,11533,120
River districts67,40022,132 30,193119,725
Catchment districts133,91035,809 168,257337,976
Land-drainage districts77,3923,858 7,07888,328
Electric-power districts1,6334,659,393 820,4615,481,487
Water-supply district3,637113  3,750
Urban drainage districts327,9754,505 28,939361,419
Urban transport districts35,5431,436,631 18,4441,490,618
Railway district 19,246  19,246
Gas district 80,398 31,370111,768
Rabbit districts106,25749,65792,35612,758261,028
Fire districts 342,8144,64220,748368,204
Harbour Boards279,7702,217,211 299,9472,796,928
    Totals9,806,85917,212,851611,2134,408,01432,038,937

Revenue proper in 1947–48 was £1,070,943 greater than in 1946–47, while receipts other than revenue increased to the extent of £670,643. Rates accounted for £265,726 of the revenue increase, public utilities, licences, rents, &c., for £706,033, and revenue from the General Government accounted for £99,184.

Of the total rates (£9,806,859) collected during 1947–48, general rates levied brought in £5,031,054 and other rates (including penalty on overdue rates) £4,775,805. Of the latter, £3,417,279 was received by boroughs and £1,075,307 by counties. The whole of the rates collected by Harbour Boards (£279,770) were classed as general rates.

It is of interest to note that for the year 1947–48 the total of all rates collected by counties was equal to £8.76 per £1,000 of rateable capital value (land and improvements). The corresponding figure for boroughs was £16.61, for independent town districts £13.77, and for dependent town districts £9.41 (excluding rates levied by County Councils).

Sections in successive Finance Acts from 1930 to 1936 authorized the remission or postponement in whole or in part of the 10-per-cent. penalty on unpaid rates. This authority then lapsed, but was reinstated on a permanent basis and made retrospective by the Statutes Amendment Act, 1938.

Public Utilities, Licences, Rents, &c.—As indicated earlier, rates are not the only form of local taxation. Local authorities derive a certain amount of revenue from publicans' licences, heavy-traffic fees, motor-drivers' licences, drivers' (other vehicles) licences, auctioneers' and hawkers' licences, building permits, dog-taxes, pound-taxes, tolls, &c. Sources of revenue not classed as taxation are rents, fines and penalties, market dues, sales of material, sales of light and power from gasworks and electric-supply works, tramway and omnibus receipts, interest on deposits, wharf dues, &c.

Of a total revenue of £7,251,164 accruing to boroughs under this head in 1947–48, £1,141,193 represented tramway and omnibus receipts, £2,542,908 sales of electric light and power, and £638,492 sales of gas. Comparable figures for 1946–47 were £6,879,172, £1,173,353, £2,520,784, and £577,751 respectively.

Receipts from General Government.—A statement of revenue receipts by local authorities from the General Government during the five financial years ended 31st March, 1948, is given in the next table.

Year Ended 31st March,
1944.1945.1946.1947.1948.
 £££££
Rates on Crown and Maori lands3,6794,2396,1117,81511,325
One-third of receipts from land sold on deferred payment or held on perpetual lease3,5723,1243,0731,9603,335
One-fourth of rents from small grazing-runs260425172164978
Timber and flax royalties14,47615,18617,43324,40931,112
Goldfields revenue and gold duty20,43817,99116,13915,83613,942
Subsidies on rates252,048262,259277,359276,809306,691
Motor-spirits tax85,500100,628115,892163,862202,775
Fees and fines3,5184,4174,92610,00112,219
Other revenue receipts10,1336,7509,18611,17328,836
    Totals, Revenue Account393,624415,019450,291512,029611,213
Loans from State Advances Corporation5,28024,251129,810261,658172,978
Advances from Main Highways Account  3,1458,8276,118
Advances from Soil Conservation and Rivers Control Council 6,7005,50042,17853,350
Grants for special works, &c.—     
  From Labour and Employment Department107,26795,21989,95768,31863,535
  From Highways Votes398,532436,126525,132703,159838,254
  Other372,164256,811297,769364,105388,409
    Total receipts from Government1,276,8671,234,1261,501,6041,960,2742,133,857

EXPENDITURE.—The expenditure of local authorities during each of the last eleven years has been as follows:—

Year Ended 31st March,Works and Utilities (Construction and Maintenance).Hospital Board Levies.Administration.Interest on Loans and Overdraft.Other.Total Expenditure
 ££££££
193814,672,484821,6971,034,6463,031,7932,490,52722,051,147
193917,170,464943,5291,354,2493,029,9902,580,70325,078,935
194017,413,2421,093,4791,350,0113,034,7532,817,71025,709,195
194116,120,898966,2211,371,4343,030,8023,237,27324,726,628
194215,114,2551,066,3831,439,9182,928,1723,523,36424,072,092
194313,802,8651,315,9971,385,2272,806,1463,918,19923,228,434
194414,222,5701,251,1831,404,1052,725,2834,198,05623,801,197
194515,428,5901,313,8441,560,7912,620,4064,300,01225,223,643
194617,516,4361,534,8191,676,5632,541,9294,084,88627,354,633
194720,319,3651,857,2731,844,1172,475,4573,982,96230,479,174
194822,550,6661,350,7112,066,0232,356,7954,133,13132,457,326

Included in the total of other payments for 1947–48 is an amount of £2,686,780 in respect of amortization of debt and £76,474 for exchange, the bulk of which related to interest payments. Comparable figures for 1946–47 were £2,615,907 and £108,490 for amortization and exchange respectively.

The main items of expenditure of the various classes of local authorities during 1947–48 is shown below.

Works and Utilities (Construction and Maintenance).Hospital Hoard Levies.Administration.Interest on Loans and Overdraft.Amortization of Debt.Total Expenditure.*

* Including other items.

 ££££££
Counties3,479,329644,998477,780228,551295,4535,282,087
Boroughs10,505,214690,176742,5371,093,7341,304,46115,006,604
Town districts126,41612,09524,59312,56716,359196,272
Road districts25,0533,4423,2362,8162,63738,161
River districts76,679 10,21010,74414,360112,909
Catchment districts245,822 57,37410,6278,974323,876
Land drainage districts56,681 7,68312,21313,72796,458
Electric - power districts4,165,465 399,249437,508548,6755,749,690
Water - supply district1,956 5262525933,327
Urban drainage districts152,325 31,610108,22574,622378,480
Urban transport districts1,205,849 79,19871,88489,8001,607,966
Railway district20,260 3,165693 24,118
Gas district107,667 5,2289,00711,351133,724
Rabbit districts230,650 23,558682133259,662
Fire districts323,982 10,27417,87920,891387,617
Harbour Boards1,827,318 189,802339,413284,7442,856,375
    Totals22,550,6661,350,7112,066,0232,356,7952,686,78032,457,326

The table following gives, in respect of boroughs only, the expenditure on new works out of loan-money during the last eleven years, classified under various heads.

Year Ended 31st March,Roads, Streets, and Bridges.Drainage and Sanitation.Waterworks.Houses, Workers' Dwellings, &c.Parks, Gardens, Town Halls, Libraries, Art Galleries, and Places of Public Recreation.Lighting and Power Services.Other Public Works.Totals.
 ££££££££
1938226,127165,62378,009121,38833,8509,735109,303744,035
1939172,797156,457131,451145,91654,53515,735125,227802,118
1940148,191151,350142,910121,65973,49348,89355,950742,446
1941135,740103,297125,68717,97249,94482,97724,068539,685
194256,08349,003250,69812,8267,48438,42816,539431,061
194312,78914,056115,91332,2184,46723,2735,109207,825
194424,40423,018137,8914,3796,13518,92112,269227,017
194526,32435,816235,06421,03726,92154,75721,012420,931
194633,81017,744267,971126,65322,85282,32537,268588,623
194751,87231,905295,702317,80822,319115,11826,956861,680
194880,87476,713280,928205,50545,387110,763100,134900,304

ASSETS AND LIABILITIES.—The assets and liabilities of local authorities at the end of the financial year 1947–48 were as shown in the table following.

Assets.Liabilities.
Cash Assets.Other Assets (as estimated in published Balance-sheets).Debentures and other Securities: Net Indebtedness.Inscribed Stock, i.e., Loans from Treasury under Local Bodies Acts.Other Liabilities (Bank Overdrafts, Temporary Loans, Outstanding Accounts, &c.).Total Net Liabilities.
 ££££££
Counties1,965,3813,334,1734,353,847276,216408,3185,038,381
Boroughs8,176,64040,790,60322,331,252194,5061,148,26323,674,021
Town districts122,925408,264274,0571,80724,576300,440
Road districts12,57032,92664,171 1,71965,890
River districts67,410154,591236,086 5,492241,578
Catchment districts113,569250,884268,554 25,305293,859
Land - drainage districts53,67353,852199,43532,10110,860242,396
Electric - power districts3,608,11820,625,27410,005,905 1,120,67311,126,578
Water - supply district4921,3905,053  5,053
Urban drainage districts202,0781,398,6362,016,865 20,2742,037,139
Urban transport districts193,5882,758,7691,108,990 121,3221,230,312
Railway district826238,262  21,50721,507
Gas district76,597304,854223,078 39,182262,260
Rabbit districts135,37259,1543,193 22,29125,484
Fire districts131,9651,062,493358,096 46,558404,654
Harbour Boards2,620,58316,772,7586,847,297 285,1787,132,475
    Totals17,481,78788,246,88348,295,879504,6303,301,51852,102,027

The figures shown in the column “Other assets” are taken from the respective balance-sheets, but are far from complete, inasmuch as no valuations are made for certain items. This applies particularly to roads, which, although representing considerable wealth to the community, do not figure at all in the assets. In this connection it may be mentioned that the greater part of the expenditure of counties and road districts goes in this direction. In the case of boroughs, although the proportion is very much less, 13 per cent. of the loan-money expenditure during the last ten years was on roads, streets, and bridges. Assets of local authorities as returned for the last eleven years are as under.

As at 31st March,Cash Assets.Other Assets (estimated).
 ££
193811,361,08069,792,113
19399,981,22271,892,826
194010,679,40674,492,688
194111,119,95875,802,937
194211,324,47877,482,820
194313,718,19077,937,237
194415,627,86278,620,899
194517,202,78179,738,843
194617,936,37581,773,700
194718,183,14884,807,766
194817,481,78788,246,883

Cash assets are made up chiefly of loan balances, reserve investments, and cash in hand. Sinking funds, which amounted to £8,316,966 at 31st March, 1948, do not appear in the foregoing table, but are shown as a deduction from the gross loan indebtedness of local authorities. Other assets are comprised mainly of fixed assets and of stocks of stores and materials.

Boroughs are responsible for 46 per cent. of the total assets, electric-power districts for 23 per cent., and Harbour Boards for 18 per cent. Counties show the comparatively low percentage of 5, but this is due to the fact that practically the whole of county expenditure goes on roads, bridges, &c., for which no valuation is available.

Hospital Boards, which are not included in the foregoing figures, had assets (excluding outstanding fees and subsidies) amounting to £12,156,800 at 31st March, 1948, bringing the total (excluding sinking funds) for all local authorities to approximately £117,885,500.

INDEBTEDNESS.—Prior to 1935–36 it was customary to classify the local-authority debt into loans from the State Advances Corporation, loans from the Main Highways Account, inscribed debt—i.e., inscribed stock exchanged for debentures under the Roads and Bridges Construction Act, 1882—and non-governmental loans. The last-mentioned comprise by far the greater part of the debt, and consist mainly of debentures issued to the public. Owing, however, to the operation of the Local Authorities Interest Reduction and Loans Conversion Act, 1932–33, a considerable number of State Advances loans have lost their identity through being included in conversion schemes with non-governmental loans, so that it is no longer practicable to show them separately. Loans from the former Main Highways Account being comparatively insignificant in total (approximately £24,000), it was felt that no useful purpose was served by a separate classification. Commencing with 1935–36, therefore, the debt appears under two headings only: (1) Debentures and other securities, and (2) inscribed debt. The reason for retaining the identity of inscribed debt is that it is fundamentally different from the usual type of loan. Originating in the early days of the present system of local government, it arose out of a recognition by the General Government that the primary functions of local authorities, such as road-making, were of national importance, and money was advanced on very favourable terms. The loans were for long terms at low interest-rates, with no provision for repayment, the position being that as soon as a local authority met its final instalment of interest the loan was ipso facto extinguished. Loans of this nature are vastly different from what is usually connoted by the term.

The total gross debt of local authorities at 31st March, 1918, was £57,117,475, made up of: Debentures and other securities (including loans from the State Advances Corporation), £56,589,129; loans from the then Main Highways Account, £23,716; and inscribed debt, £504,630. The net indebtedness (i.e., after deducting accumulated sinking funds from debentures and other securities, and making an actuarial estimate of the liability for inscribed debt on an assumed table-loan basis) was £48,339,266.

It is necessary to observe that figures of local-authority debt given herein are not quoted in uniform currency terms. Debt held in New Zealand (the great majority of the total) is expressed in New Zealand currency; that held in Australia is expressed in Australian currency; and that held in the United Kingdom is expressed in sterling. The total is ascertained by adding the three currencies together without conversion to a common basis. If the amount domiciled overseas is converted to New Zealand currency, the total gross debt at 31st March, 1918, at the then rates of exchange, was £(N.Z.)58,610,200.

After the passing of the Local Government Loans Board Act, 1926, borrowing was on a much lower scale than had been the case for some years previously. During the first four years of its operation (April, 1927, to March, 1931) the net increase in the debt aggregated £8,673,789, a yearly average of £2,168,447, or less than half the average increase of the previous eight years. After 1930–31 there was an almost progressive decline for many years, the total decrease to the end of 1937–38 being £4,625,085. A sharp rise of £1,280,296 in 1939–40 was followed by a further decline of £12,369,495 during the next eight years—i.e., to 31st March, 1948. Part of the decrease following 1932–33 was due to conversion operations, in which accumulated sinking funds were utilized for repayment purposes, and it should be noted that in 1936 the whole of the debt of the Southland Electric-power Board (£1,638,134 gross, £1,237,307 net, at 31st March, 1936) was taken over by the General Government.

Reference to the next table will show that borrowing by local authorities was on a much heavier scale during the three years up to 1948–19 than for many years past, and the amount of outstanding debt may be expected to show an increase during the next few years. The low figures of the amounts sanctioned for new works during the period 1939–40 to 1945–46 may be ascribed to factors arising out of the war.

The following summary of the operations of the Local Government Loans Board during the last eleven years shows concisely the trend of local authority borrowing during that period. Hospital Boards are included in this instance.

Year.Total Applications.Sanctioned.
New Works.Redemption Loans.
 £££
1938–395,138,9173,013,8721,188,525
1939–402,674,4501,701,460355,800
1940–415,336,6402,709,5051,602,670
1941–424,589,6531,898,0961,391,728
1942–433,336,7801,497,1201,121,000
1943–443,999,6651,349,3352,359,755
1944–453,242,3271,737,807698,120
1945–463,497,8202,643,935243,235
1946–479,843,5437,289,4361,106,430
1947–488,324,5796,022,0341,459,880
1948–498,934,7056,977,2891,542,177

The outstanding loans of local authorities (other than Hospital Boards) at the end of each of the last eleven years are shown in the following table.

At 31st March,Debentures and other Securities.*Inscribed Debt.Total Debt.
Gross Debt.Net Debt (i.e., less accumulated Sinking Funds).Gross Debt.Present Indebtedness (actuarially computed).Gross Debt.Net Debt.

* Including loans from State Advances Corporation and from the former Main Highways Account.

 ££££££
193866,487,01356,995,4411,573,938409,28668,060,95157,404,727
193966,678,21556,988,0801,528,459361,44268,206,67457,349,522
194068,006,31958,041,7461,480,651314,61269,486,97058,356,358
194166,544,30757,631,5161,430,380268,72067,974,68757,900,236
194265,332,78556,555,4691,313,205223,63966,645,99056,779,108
194363,969,09655,148,5511,161,978180,35065,131,07455,328,901
194462,307,74353,394,194955,085143,20663,262,82853,537,400
194560,414,63851,354,680823,299112,38261,237,93751,467,062
194659,342,33250,029,520683,53285,62360,025,86450,115,143
194757,171,83248,954,703596,42763,42557,768,25949,018,128
194856,612,84548,295,879504,63043,38757,117,47548,339,266

In addition to the scheme of State advances, there exists a system whereby the State guarantee to the payment of interest and principal, in the event of default by the local authority, may be obtained by the borrowing authority. The amount outstanding in respect of local-authority loans guaranteed by the State has fallen to negligible proportions during recent years, being only £42,300 at 31st March, 1948, against which there were sinking funds to the value of £1,728. At 31st March, 1940, the amount of these guaranteed loans was £736,806, sinking funds in respect thereof totalling £463,335.

Of the total net indebtedness of £48,339,266 at the 31st March, 1948, boroughs were responsible for £22,349,552, which represents 5.9 per cent. of their rateable capital value. In the case of counties, which have a much less per caput expenditure on works, &c., the aggregate not indebtedness was £4,375,960 and the percentage of rateable capital value only 1.3.

The following table shows, per head of the population, the gross debt of local authorities and the annual charge thereon for the last eleven years.

As at 31at March,Population.Gross Debt.Annual Loan Charge.
Amount.Rate per Head.Amount.Rate per Head.
  ££s.d.££s.d.
19381,604,47968,060,95142854,457,8742157
19391,624,71468,206,674411974,602,0622167
19401,640,90169,486,970426114,726,0742177
19411,636,23067,974,6874110104,806,9012189
19421,634,33866,645,990401574,823,8472190
19431,634,09465,131,074391724,822,9752190
19441,643,90063,262,82838984,828,0292189
19451,679,97261,237,93736904,869,7492180
19461,758,00460,025,864342114,994,79221610
19471,793,22557,768,25932444,925,03421411
19481,834,27057,117,47531295,079,9942155

It should be noted that the debt of electric-power districts shown in the following table does not represent the complete local-authority debt on account of electric power activities, since a considerable portion of the borough debt, and a small part of the county and town district debt also, was incurred for that purpose.

As at 31st March,Counties and Road Districts.Boroughs and Town Districts.Urban Drainage Districts.Urban Transport Districts.Electric-power Districts.Harbour Boards.Other Districts.Totals.
 ££££££££
19387,135,87431,868,4572,744,939,3,105,81311,890,0319,894,1151,421,72268,060,951
19397,124,33531,774,2102,736,4922,860,52212,471,3159,746,9401,492,86068,206,674
19407,156,11431,932,6002,750,2393,070,46513,114,6889,960,6391,502,22569,486,970
19417,095,90031,166,8012,751,3592,445,94513,106,7749,927,5781,480,33067,974,687
19426,992,93030,722,0372,733,9172,397,45912,499,0469,796,6471,503,95466,645,990
19436,685,00029,841,3392,708,4182,232,18212,376,5589,790,6591,496,918,65,131,074
19446,361,05029,060,0012,666,8792,160,04111,828,5089,700,9621,485,38763,262,828
19456,050,09928,334,8812,641,5851,757,78611,535,5229,496,7631,421,30161,237,937
19465,810,59227,896,9732,624,4581,720,62811,190,5869,365,1491,417,47860,025,864
19475,513,45027,270,5132,616,8831,659,28110,841,8138,406,3781,459,9415,768,259
19485,104,42726,985,3052,595,8521,593,23011,093,7228,234,1631,510,77657,117,475

The debt of road districts at 31st March, 1948, which is included with that of counties, was £65,246; the town district debt at the same date was £311,793. The debt of “other districts” at 31st March, 1948, was mainly that of river districts (£258,337), catchment districts (£289,385), land drainage districts (£282,362), gas district (£229,506), and fire districts (£442,940).

Domicile of Debt.—A five-years summary of the domicile of loans outstanding, other than inscribed debt, is given hereunder.

At 31st March,Amount.Percentage of Total.
New Zealand.United Kingdom.Australia.New Zealand.United Kingdom.Australia.
 £££Per Cent.Per Cent.Per Cent.
194452,846,0607,837,2251,624,45884.8112.582.61
194551,795,3317,074,9251,544,38285.7311.712.56
194651,253,2076,604,7251,484,40086.3711.132.50
194749,894,7245,990,3251,286,78387.2710.482.25
194849,386,7365,970,9001,255,20987.2310.552.22

During 1947–48 the amount domiciled in New Zealand decreased by £507,988 that in Australia by £31,574, and that in the United Kingdom by £19,425.

Debt Charges.—Particulars of the annual loan charge of local authorities during each of the last eleven years are as follows:—

At 31st March,On Debentures and other Securities.On Inscribed Debt.Total.
 £££
19384,402,45055,4244,457,874
19394,548,27653,7864,602,062
19404,674,02252,0524,726,074
19414,756,70150,2004,806,901
19424,777,85445,9934,823,847
19434,782,32440,6514,822,975
19444,794,67133,3584,828,029
19454,841,27928,4704,869,749
19464,970,90623,8864,994,792
19474,904,19120,8434,925,034
19485,062,36017,6345,079,994

Amortization charges are included in the above, the amount payable during 1948–49 on debt other than inscribed debt at 31st March, 1948, being £2,818,637. Interest charges payable during 1948–49 on the debt (other than inscribed debt) outstanding at 31st March, 1948, aggregated £2,243,723, payable according to countries of domicile, as follows: New Zealand, £1,880,676; Australia, £66,730; United Kingdom, £296,317 (excluding exchange).

The loans outstanding, other than inscribed debt, at 31st March, 1948, are classified below according to domicile, and also according to rate of interest. Reference should be made to observations on page 573 in regard to the currencies in which local-authority debts are expressed.

Rate of Interest per Cent.Domiciled in New Zealand.Domiciled in United Kingdom.Domiciled in Australia.Totals.
 ££££
Free of interest49,521  49,521
32,304,983 9,9002,314,883
3⅛2,404,466  2,404,466
6,244,725  6,244,725
3 5/162,318  2,318
3⅜1,163,136  1,163,136
3 7/1614,500  14,500
6,335,752  6,335,752
3⅝459,627  459,627
3 7/1033,853  33,853
995,316  995,316
3⅞270,177  270,177
3 729/800394,475  394,475
41,101,466189,400 1,290,866
4⅛346,856  346,856
26,371,587156,000156,50026,684,087
4⅖147,145 1,435148,580
278,2141,190,500 1,468,714
4⅗265,935 15,000280,935
  178,955178,955
4⅘192,018  192,018
52,7462,565,100 2,567,846
5⅕1,000  1,000
 1,024,60051,5001,076,100
920845,300202,0051,048,225
5 11/16  130,000130,000
6,000 509,914515,914
    Totals49,386,7365,970,9001,255,20956,612,845

The average rates of interest work out as follows: New Zealand, 3.87 per cent.; United Kingdom, 4.96 per cent.; Australia, 5.32 per cent.; total, 4.02 per cent.

The interest-rates quoted are those applicable to the amount of debt outstanding. They have not been adjusted to the prices at which the respective loans were raised—e.g., where a loan was issued below par the rate of interest on the sum actually received (omitting the question of flotation expenses) would be higher than the rates quoted above.

Interest Reduction and Loans Conversion.—As part of a general policy of a reduction in interest-rates, the National Expenditure Adjustment Act, 1932, imposed, inter alia, a stamp duty of 10 per cent. on interest derived from local-authority securities. The proceeds, less 5 per cent. as administrative charges, were paid to the respective local authorities. This duty was abolished by the Local Authorities Interest Reduction and Loans Conversion Act, 1932–33, which followed somewhat similar legislation dealing with the public debt. Interest-rates on local-authority securities in excess of 4½ per cent. per annum were reduced by 20 per cent., or to a minimum of 4½ per cent. Local authorities were also empowered to draw up individual conversion schemes at a lower and more uniform rate of interest. Dissentients to any such scheme were penalized by a reduction of 33⅓ per cent. below the original rate.

The provisions of the Local Authorities Interest Reduction and Loans Conversion Act, 1932–33, ceased to operate on 31st December, 1935, at which date 90 per cent. of the debt convertible at the 31st March, 1933, had been converted; but provision was contained in section 20 of the Finance Act (No. 2), 1935, for voluntary conversion to be carried out under the provisions of the principal Act.

The Local Authorities Interest Reduction and Loans Conversion Amendment Act, 1934, limited future borrowings to an interest-rate not exceeding 3½ per cent., with provision, however, for varying the rate by Order in Council under the Local Government Loans Board Act, 1926. In May, 1939, the maximum was raised to 4¼ per cent., but this has since been reduced and the present maximum rate is 3¼ per cent.

Loan Maturities.—The following table classifies loans (other than inscribed debt) according to years of maturity and countries of domicile.

Years of Maturity (ended 31st December).New Zealand.United Kingdom.Australia.Total.
 ££££
Prior to and during 19506,615,7761,257,10021,8497,894,725
1951–5511,645,498931,80097,22912,674,527
1956–6014,264,9543,080,000122,60017,457,554
1961–6510,358,989702,000779,53111,840,520
1966–704,161,724  4,161,724
1971–751,961,152 234,0002,195,152
1976–80335,495  335,495
1981–8344,423  44,423
Unspecified8,725  8,725
    Totals49,386,7365,970,9001,255,20956,612,845

Table loans account for £16,574,744 of the above total, loans in which & number of debentures are redeemed each year for £24,363,493, and loans with one fixed maturity date for £15,674,608. In the case of table loans the year of maturity is taken as that in which the final instalment is payable. Practically the whole of the debt domiciled abroad is composed of loans with one fixed date of maturity.

EMPLOYMENT BY LOCAL AUTHORITIES.—Employment by local authorities comprises principally the construction and maintenance of roads and streets, and the operation and maintenance of public-utility industries (gas, electric supply, and tramways) and social services.

Particulars relating to wage-earning employees employed by the various classes of local authorities during the five year period 1944–45 to 1948–49, are presented in the next table. The figures shown are averages of the numbers employed at 15th (or nearest representative day) of each month. The statistics do not cover Hospital Boards, Fire Boards, or Electric-power Boards. Employees of Electric-power Boards are included in the figures for manufacturing industries, published in the Annual Statistical Report on Factory Production (their average number during 1948–49 was 1,720), while employees of Hospital Boards are shown in a subsequent table. There were 505 wage-earning employees of Fire Boards as 31st March, 1949.

Class of Local District.Number of Wage-earners (Average of Twelve Months Ended March)
1945.1946.1947.1948.1949.
Boroughs8,1608,4408,9199,0179,094
Counties3,3073,4203,4963,5093,502
Harbour Boards2,3342,3102,3062,4802,602
Urban transport districts1,7231,7571,9592,0032,117
River districts1231491328379
Urban drainage districts153149163170183
Rabbit districts393381389434569
Town districts153160143135126
Land-drainage districts8284817277
Road districts3839401213
Gas district4463504539
Railway district1420192422
Water-supply district21765
Catchment districts2638156240
Nassella tussock districts    8
    All districts16,52816,97917,74218,14618,676

During the period covered above, employment by local authorities rose steadily to regain approximately its 1928–29 level. Figures for the “depression” years had shown greatly inflated totals, the peak of 50,955 (for all districts covered) being reached in 1933–34. Much of this labour was, of course, paid for out of subsidies granted by the General Government for the relief of unemployment.

The institutional staff of public hospitals and charitable institutions under the control of Hospital Boards was as follows for the last five years ended 31st March.

Nature of Staff.1945.1946.1947.1948.1949.
Stipendiary medical608660724751799
Other professional and technical560610655760951
Nursing6,7966,4136,6576,8857,338
Indoor domestic4,0664,0594,2704,4184,484
Outdoor8029149991,0451,083
Miscellaneous474498537575631
    Totals13,30613,15413,84214,43415,286

There has been some increase in recent years in the visiting medical staff of Hospital Boards. The figures for the last available five years ended 31st March are as follows: 1945,394; 1946,396; 1947,466; 1948,487; and 1949, 537.

Chapter 28. SECTION 28—VALUATION OF LAND

GENERAL.—The necessity for fixing equitable land values arises in many of the relations of the General Government and local governing authorities with the individual. In particular they are required in connection with the following:—

  1. The levying of land-tax.

  2. The apportionment of Hospital Boards' and other similar rating levies over contributory local authorities.

  3. The levying of rates by local authorities.

  4. The advancing of money on mortgage by Government Departments and by trustees under the Trustee Act.

  5. The assessing of stamp, death, and gift duties.

  6. The fixing of prices payable by lessees to the Crown for acquiring the freehold of Crown lands.

  7. In assessing the compensation payable where land is taken under the Public Works Act.

  8. In estimating the prices payable in alienations of Maori lands.

SYSTEM AND PROCEDURE.—Prior to 1896 the valuing of land was not conducted on a uniform basis. Each State Department and local authority employed as valuers such persons whom it thought fit, and estimates of values by different authorities varied considerably. To bring about some order the Government Valuation of Land Act, 1896, set up a separate Department of State charged with the duty of assessing the values of real estate for taxation and other purposes of the General Government and for local rating purposes. The present law relating to the valuation of land is contained in the Valuation of Land Act, 1925 (which consolidated previous legislation), as amended in 1926, 1927, 1933, 1940, 1945, 1946, 1948, and 1949, and in the Land Valuation Court Act, 1948.

The work of the Valuation Department is directed by the Valuer-General, the actual work of valuing being done by District Valuers and assistant valuers. The duty of a valuer in to examine each property and to estimate to the best of his ability (1) the unimproved value of the land contained therein, (2) the value of the buildings (if any) or other improvements (if any) upon such land, and (3) the capital value of the property.

Valuers are enjoined not to strain after high values, nor to accept special prices paid for land in exceptional circumstances, but to determine the value neither above nor below the fair soiling value in view of the many and diverse purposes for which the values are used.

Generally, under the New Zealand law the increased value attaching to any piece of land which is due to the successful working of other lands in the district, or to State or local-body expenditure on public works, or to the general prosperity and development of the country, forms portion of the “unimproved value.”

“Improvements” on land are defined, with certain provisos, as any work clone or materials used on or for the benefit of the land by any owner or occupier resulting in an increase in the value of the land.

The “capital value” is the sum of the “unimproved value” plus the value of “improvements.”

Any valuation of any land within a county made before 31st March, 1951, shall not exceed the basic value of the land within the meaning of the Servicemen's Settlement and Land Sales Act, 1943.

THE VALUATION ROLL.—The Valuation of Land Act directs the preparation of a valuation roll for each district over which a local authority has rating jurisdiction, setting forth in respect of each separate property the following particulars:—

  1. The name of the owner of the land, and the nature of his estate or interest therein, together with the name of the beneficial owner in the case of land hold in trust:

  2. The name of the occupier within the meaning of the Rating Act:

  3. The situation, description, and area of the land:

  4. The nature and value of the improvements:

  5. The unimproved value of the land:

  6. The capital value of the land:

  7. Such other particulars as are prescribed.

Revision of Rolls.—District valuation rolls are revised by the Valuer-General at such dates as the Governor-General in Council from time to time directs. Previously there were no fixed periods between revisions. Since the necessity for revision depended upon the extent to which values had moved since the previous revision, the periods between revisions varied considerably between old-established and currently-developing districts. The considerable changes in land values over recent years have caused a wider realization of the need for up-to-date valuations, and it has now been provided that all revisions of district valuation rolls made after 31st March, 1947, must be again revised within five years unless the Governor-General in Council directs otherwise.

There is provision that in the revaluation of a borough rating on the unimproved value the Governor-General in Council may direct that the revision is to be confined either to the unimproved values only or to the value of improvements only, with consequent adjustments of the capital values.

Alterations During Currency of Rolls.—At any time between the revisions of district rolls the Valuer-General may readjust, correct, or bring up to date the entries therein in consequence of:—

  1. Any improvements being added to or removed from the land:

  2. Any change in the ownership or occupancy of the land:

  3. Any amended valuation being made on the requirement of the owner of the land:

  4. Any land being omitted from the roll, or the name of the owner or the description or other particulars of the land being erroneously entered therein:

  5. Any subdivision of the land:

  6. Any lease or any other terminable charge or interest affecting the respective interests of the respective owners.

In now valuations as a consequence of (c) or (e) the aim is to preserve uniformity with the existing roll values of comparable parcels of land.

The Supplementary Roll.—There is, in addition to the district valuation roll for each district, a supplementary roll for that district. The supplementary roll may be used for the same purposes as the district roll except that it may not be used for the assessment of land-tax or local rates. Generally, all special valuations of land made during the currency of a district roll for particular purposes—e.g., the granting of loans by Government Departments or trustees on the security of lands, the assessment of stamp, gift, and death duties—are entered on the supplementary roll, but not on the district roll. There is generally a right of objection to such special valuations procedurally similar to the objections discussed under the next heading.

Objections to Valuations.—When a district valuation roll is revised the Valuer-General addresses to each owner, and also to the owner concerned when any particular valuation in that roll is altered, a notice showing the now valuation and naming a date before which all objections (in writing) to the values must be lodged. In the case of a revision of a district roll the Valuer-General, any local authority, or any owner whoso name appears on the roll, may object to any valuation thereon. Where a particular property only is revalued, only the owner has a right of objection.

The Valuer-General refers any objections to his District Valuers for reconsideration. He may then decide (1) of his own motion to refer the objection to the Land Valuation Court, (2) to alter the valuation to the extent claimed, (3) to alter the valuation to such extent as is agreed upon with the objector, or (4) decline to alter the valuation. If his decision is either (2), (3), or (4), he serves notice of it on the objector, and on the owner if other than the objector. Either of these may notify the Valuer-General within fourteen days that he desires the objection to be heard by the Land Valuation Court. If no such notice is received the Valuer-General's decision is deemed to be assented to, and the roll is amended, if necessary, to give effect to his decision.

LAND VALUATION COURT.—The Land Valuation Court Act. 1948, established the Land Valuation Court, transferred to that Court the jurisdictions previously exercised by Assessment Courts under the Valuation of Land Amendment Act, 1945, and abolished the latter Courts. Under the new legislation the Court consists of three members appointed by the Governor-General in Council, one of whom is the Judge of the Court. In addition to its jurisdiction under the Valuation of Land Act, the Court hears claims for compensation under the Public Works Act. 1928, and determines values under the Servicemen's Settlement Act, 1950.

The Act also established Land Valuation Committees which, in the exercise of their powers and functions, are subject to the general jurisdiction of the Court. A local authority may appoint a person, other than a member or paid officer of a local authority, to be an additional member of the Land Valuation Committee exercising its functions in the district of that local authority. This provision is limited to cases where objections to valuations of property situated in that local authority's district are being heard.

The Valuer-General files with a Registrar of the Land Valuation Court a list of objections, including those which of his own motion he has decided to refer to the Court and those which the objectors desire to be heard by the Court. Copies of the objections are filed with the list. The Registrar refers the objections to the appropriate district Land Valuation Committee for hearing, and the Committee embodies its determination in each case in a formal order which, after a lapse of fourteen days, is sealed by the Registrar and becomes an order of the Court. Within the period of fourteen days, however, either the Crown representative, or any one affected by the order, may appeal to the Land Valuation Court, or the Court of its own motion may amend the order. Except that the Judge of the Court may on the application of any party to proceedings, or of his own motion, state a case for the opinion of the Court of Appeal on a question of law, the decisions of the Land Valuation Court (either decisions of the Court itself or orders of the Committees sealed by the Registrar) are final.

In the case of an objection to a valuation being allowed, the new valuation dates back to the date at winch the valuation objected to would have been effective had no objection been lodged.

If any owner who has objected to a valuation made at a revision of a district roll is not satisfied with the value of the land as fixed by the Land Valuation Court's order, he may, within fourteen days of the sealing of the order, give notice to the Valuer-General that he requires the capital value to be reduced to the value which he (the owner) considers to be the fair selling value as specified in his notice (but not less than the aggregate amount owing on mortgages or other charges on the land), or the land to be acquired on behalf of His Majesty, or sold, at that value. There is also provision that if the Valuer-General is of the opinion that the value has been fixed by the Court at less than the capital value, he may within fourteen days after the sealing of the Court's order require the owner to consent to what he (the Valuer-General) considers is the fair capital value, and, failing such consent being given within thirty days after notice is delivered, he may, with the approval of the Governor-General in Council, acquire the property at that value on behalf of His Majesty.

VALUATIONS IN RELATION TO RATING.—The district valuation roll so long as it continues in force is by law the roll from which the valuation roll of every local authority rating on the capital or on the unimproved value is framed.

Owing to the heavy decline in values during the early nineteen-thirties, and the impracticability of a universal revaluation, the provision enabling new valuations to be made was availed of by many owners with the object of reducing their rate payments. In order to maintain rating equity the Valuation of Land Amendment Act, 1933, authorized local authorities to levy rates upon a proportionate part (not being under 75 per cent.) of values upon the roll. Where an individual owner had obtained a revaluation, the lower of either the new figure or the proportionate part of the previously existing figure was taken. Since 1945 the right of objection to such a new valuation is limited to the claim that uniformity has not been preserved with existing roll values of comparable parcels of land.

The Urban Farm Land Rating Act, 1932 (amended in 1933, 1935, and 1944), provides for rating relief for farm lands subject to rates levied by Borough (or City) Councils, Independent Town Hoards, and certain Road Boards. The Act provides that these local authorities may assess valuations for rating purposes for such farm lands lower than the values for the same lands appearing on the district valuation rolls. There are rights of objection to such valuations, either to a specially constituted Assessment Court where the valuations are to appear on a farm land roll, or to a Magistrate if special rateable values are being assessed for the ordinary rating roll. The values are generally revised at five-yearly intervals.

A heritage of the days of independent valuations by local authorities is the provision by which they can rate on the annual (rental) values of properties within their areas, these values being assessed by the local authorities' own valuers. The annual value is defined as the rent at which a property would lot from year to year reduced by 20 per cent. in the case of houses, buildings, and other perishable property, and by 10 per cent. in the case of land, but it may not be less than 5 per cent. of the value of the fee-simple. A now valuation roll in this regard is prepared either annually or triennially.

CAPITAL AND UNIMPROVED VALUES OF LAND.—General valuations of land for the whole of New Zealand were made periodically up to the year 1897–98. Since that year no general valuations for the whole country have been made, but portions are revalued from time to time. As previously mentioned, however, it is now provided that every revision of a district valuation roll made after 31st March, 1947, shall be followed by a further revision within live years, unless such revision is postponed by Order in Council. The figures in the following table, showing valuations over a number of years, therefore represent general valuations up to 1897 only, while for subsequent years the figures include the latest valuation available of each division.

GROSS CAPITAL AND UNIMPROVED VALUES

As at 1st April,Capital Value (Land and Improvements).Unimproved Value of Land (Included in previous Column).
 ££
187899,566,67962,573,868
1882101,000,000 
1885113,270,619 
1888111,137,71476,497,379
1891122,225,02975,832,465
1897138,591,34784,401,244
1902154,816,13294,847,727
1905197,684,475122,937,126
1907236,644,536149,682,689
1909271,516,022172,759,948
1911293,117,065184,062,798
1913340,559,728212,963,468
1915371,076,683230,705,147
1916389,164,729241,322,255
1917405,466,071251,087,708
1918421,383,373260,921,812
1919445,533,445275,988,409
1920470,093,697290,880,264
1921518,584,318317,631,245
1922544,503,376329,174,337
1923553,403,794330,790,991
1924568,500,653333,869,581
1925587,349,575339,310,260
1926603,250,306341,047,952
1927618,264,093341,519,107
1928631,454,676335,217,075
1929655,906,887344,757,796
1930664,571,181338,887,411
1931667,911,212331,634,774
1932662,829,264321,798,700
1933653,707,517314,556,174
1934650,362,355309,770,390
1935637,604,203301,137,513
1936635,801,798295,695,574
1937632,229,720287,844,804
1938636,362,641282,326,015
1939652,898,894282,806,212
1940660,524,008278,880,855
1941673,118,250277,541,575
1942681,921,681276,884,859
1943684,180,966276,881,168
1944688,794,796277,038,582
1945697,365,953277,494,868
1946710,425,005279,214,040
1947746,412,384284,274,437
1948796,037,683291,617,238

The fact that land valuations are not continuously up to date has the effect in the above table of delaying the appearance of other than the steepest movements and of reducing their apparent magnitudes. Consequently, the movements in the table cannot be regarded as indicative of the trends in land values at any given time. Rural land values are generally dependent on the prices received for our exports of primary products, and those prices are also the major influence affecting the country's economy and to some extent price levels generally. If it were not for the irregular periodicity of revisions of valuations, the movements in unimproved values in the preceding table could be expected to follow the trends of export prices shown in Section 37, though with loss exaggerated movements and perhaps an upward bias due to improved efficiency in farming methods, growth of population, improved internal transport and other facilities, &c.

The table shows a continuous decrease in land values from 1929 to 1943. Probably the lowest point in real values was reached about 1934, and the decreases shown after that year merely indicate that the new valuations being made were still at levels lower than the existing pre-depression figures. After 1943 land values were stabilized through the operation of the Servicemen's Settlement and Land Sales Act, 1943, and the increases shown merely reflect the writing into new valuations, of increases which had occurred prior to 1943.

Capital values are influenced not only by the prices of primary products (in so far as they affect the unimproved value included in the capital value and indirectly by their effect on price levels generally), but also by the amount of activity in the building and construction industry. The slowing down of civil building work during the Second World War and its virtual cessation during 1942 is clearly reflected in the small increases in the capital values shown for the war period in comparison with both pre-war and postwar years.

The values shown in the foregoing table and in that following are the gross values; they include the value not only of rateable properties, but also of churches, schools, unoccupied Crown lands, and other lands exempt from local rating.

GROSS VALUES

As at 1st April,Number.North Island.South Island.New Zealand.
Capital Value (Land and Improvements).Unimproved Value of Land (included in previous Column).Capital Value (Land and Improvements).Unimproved Value of Land (included in previous Column).Capital Value (Land and Improvements).Unimproved Value of Land (included in previous Column).
  ££££££
Counties
1944129220,892,63598,077,545114,656,94864,199,718335,549,583162,277,263
1945129221,970,73098,177,405114,837,77064,147,447336,808,500162,324,852
1946129225,338,40198,774,423115,183,41964,097,111340,526,820162,871,534
1947129234,652,422100,469,097117,908,08264,045,537352,560,504164,514,634
1948129247,745,879102,932,521123,192,81364.482.772370,938,692167,415,293
Boroughs
1944127239,405,84279,542,549106,164,05433,229,168345,569,896112,771,717
1945127244,813,57679,892,537108,053,75533,370,686352,867,331113,263,223
1946128251,669,26680,793,337110,146,76033,519,782361,816,026114,313,119
1947131272,886,96084,034,623113,596,80133,841,027386,483,761117,875,650
1948134297,233,26887,793,543120,586,03834,644,646417,819,306122,438,189
Independent Town Districts
1944346,594,1251,715,4411,081,192274,1617,675,3171,989,602
1945336,587,9771,631,2971,102,145275,4967,690,1221,906,793
1946346,829,6631,713,8161,252,496315,5718,082,1592,029,387
1947316,050,7471,565,9321,317,372318,2217,368,1191,884,153
1948295,753,0861,450,6851,526,599313,0717,279,6851,763,756
Grand Totals
1938 429,671,518183,418,391206,691,12398,907,624636,362,641282,326,015
1939 440,602,497182,572,667212,296,397100,233,545352,898,894282,806,212
1940 445,768,496179,372,355214,755,51299,508,500660,524.008278,880,855
1941 453,472,929178,916,147219,645,32198,625,428673,118,250277,541,575
1942 460,823,500179,174,197221,093,18197,710,662681,921,681276,884,859
1943 463,469,474179,191,184220,711,49297,689,984684,180,966276,881,168
1944 466,892,602179,335,535221,902,19497,703,047688,794,796277,038,582
1945 473,372,283179,701,239223,993,67097,793,629697,365,953277,494,868
1946 483,837,330181,281,576226,587,67597,932,464710,425.005279,214,040
1947 513,590,129186,069,652232,822,25598,204,785746,412,384284,274,437
1948 550,732,233192,176,749245,305,45099,440,489796,037,683291,617,238

RATEABLE VALUES.—The values quoted earlier in this section relate to gross values (i.e., the value of all property, whether exempt from local rating or not). The following summary indicates rateable values for counties, boroughs, and independent town districts as at 1st April, 1948.

North Island.South Island.New Zealand.
Capital Value (Land and Improvements).Unimproved Value of Land (Included in previous Column).Capital Value (Land and Improvements).Unimproved Value of Land (included in previous Column).Capital Value (Land and Improvements).Unimproved Value of Land (included in previous Column).
 ££££££
Counties227,318,63297,061,692113,205,84161,280,294340,524,473158,341,986
Boroughs267,450,83078,495,708108,569,46231,872,415376,020,292110,368,123
Town districts (independent)5,293,0311,323,4721,392,401289,0416,685,4321,612,513
  Totals500,062,493176,880,872223,167,70493,441,750723,230,197270,322,622

The next table shows the percentage distribution of area, population, and rateable property values between the different types of local authority districts as at the 1st April, 1948.

Local Authority District.Area.Population.Rateable Property Values.
Capital Value.Unimproved Value.Value of Improvements.

*Less than 0.05 per cent.

Percentage Distribution
Counties99.536.047.158.640.3
Boroughs0.562.652.040.858.6
Town districts (independent)00*1.40.90.61.1
    Totals100.0100.0100.0100.0100.0

It will be observed that there is a close correlation between value of improvements and population distribution and a lessor degree in the case of unimproved values, with capital values consequently taking up an intermediate position.

Particulars of values for each county, borough, and independent town district were shown in the 1940 and previous numbers of the Year-Book. This information brought up to date and in much greater detail is contained in the Local Authorities Handbook, where similar data are also given for dependent town districts and for road districts.

Chapter 29. SECTION 29—BANKING AND CURRENCY

BANKING institutions operating in New Zealand may be enumerated as follows:—

  1. The Reserve Bank of New Zealand.

  2. Six trading banks.

  3. The Post Office Savings-bank.

  4. Five trustee savings-banks.

In addition, a number of trading companies, investment societies, &c., perform quasi-banking functions, accepting deposits and granting credits (short-term and long-term) to clients. In some instances deposits are repayable to the client's order at call—virtually a system of cheque-issuing.

Until the establishment of the Reserve Bank, which commenced to function on 1st August, 1934, each of the six trading banks held the right of note-issue, but this right is now vested solely in the Reserve Bank.

A full description of banking practice in New Zealand is beyond the scope of a Year-Book section, but those desiring information on this subject may usefully refer to the report of the Parliamentary Monetary Committee, parliamentary paper B–3 (1934), and to its minutes of evidence, published as an appendix. For details of legislation governing banking a publication entitled “Banking Legislation in New Zealand,” published in 1948, may be obtained from the Reserve Bank of New Zealand, Wellington.

THE RESERVE BANK.—The Reserve Bank was constituted by the Reserve Bank of New Zealand Act, 1933 (amended in minor respects by the Finance Act, 1934), with the primary object of exercising control, within defined limits, over monetary circulation and credit in New Zealand. As originally constituted, the Bank had a share capital of £500,000, composed of 100,000 publicly subscribed shares of £5, bearing a cumulative dividend of 5 per cent. Very important changes in the constitution of the Bank were made by the Reserve Bank Amendment Act, 1936, which, inter alia, abolished the subscribed share capital of the Bank, with provision for the repayment to shareholders (either in cash or in Government stock, at the option of the shareholder) of the value of shares held and accrued dividends. The General Reserve Fund of the Bank is maintained at £1,500,000, made up of a contribution of £1,000,000 by the Government at the passing of the original Act, and £500,000 to replace share capital after the passing of the 1936 Amendment Act. It will be seen that the whole of the reserve fund is now contributed by the State—the Bank being thus State-owned. Additional powers were conferred on the Reserve Bank by the Finance Act (No. 2), 1936, and further important, changes were made by the Reserve Bank of New Zealand Amendment Acts of 1939 and 1950.

The general function of the Bank was defined in section 10 (1) of the Reserve Bank of New Zealand Amendment Act, 1936, as follows: “It shall be the general function of the Reserve Bank, within the limits of its powers, to give effect as far as may be to the monetary policy of the Government as communicated to it from time to time by the Minister of Finance. For this purpose, and to the end that the economic and social welfare of New Zealand may be promoted and maintained, the Bank shall regulate and control credit and currency in New Zealand, the transfer of moneys to or from New Zealand, and the disposal of moneys that are derived from the sale of any New Zealand products and for the time being are held overseas.” By the 1950 amendment the following was added to the definition “and shall do all such things within the limits of its powers as it deems necessary or desirable to promote and safeguard a stable internal price-level and the highest degree of production, trade, and employment that can be achieved by monetary action.”

The provisions of suction 10 (1) of the principal Act were amplified by section 2 of the amending Act of 1939, which read as follows: “In the exercise of their functions and powers under the principal Act the Governor and Board of Directors shall have regard to any representations that may he made by the Minister of Finance in respect of any functions or business of the Reserve Bank, and shall give effect to any decision of the Government in relation thereto conveyed to the Governor in writing by the Minister of Finance.” This section was however, repealed by the 1950 amendment, and the following section substituted: “In the exercise of their functions and powers under the principal Act, the Governor and the Board of Directors shall give effect to any resolution of the House of Representatives in respect of any functions or business of the Reserve Bank.”

The principal powers and functions of the Bank under the existing legislation are as follows:—

  1. Make and issue bank-notes (see heading in “Coinage and Currency,” post).

  2. Buy and sell gold and silver coin and bullion.

  3. Accept money on deposit or on current account.

  4. Discount, rediscount, buy, and sell: (a) bills, notes, &c., whether commercial or agricultural, maturing within one hundred and twenty days from date of document or ninety days after sight; (b) agricultural bills, notes, &c., maturing within six months of acquisition; (c) Treasury bills of any Government, or bills of any local authority in any British Commonwealth country, all such bills to be maturing within three months of acquisition.

  5. Grant advances, up to three months, against: (a) gold coin or bullion or relative shipping documents thereof; (b) Government, local authority, or other approved securities readily marketable in New Zealand; (c) bills, &c., as referred to above; (d) promissory notes of banks in New Zealand.

  6. Grant accommodation by way of overdraft (a) to the Government of New Zealand; (b) to any Department of State or statutory authority having power to carry on any business or to borrow moneys on overdraft; (c) to any Board or other authority having statutory powers in relation to the marketing of any New Zealand produce, for the purpose of financing and marketing of any such produce.

  7. Advance moneys to the Government of any other country in respect of the purchase of any New Zealand produce for export to that country, or guarantee any such advance that may be made by another bank. The amount outstanding in respect of any advances or guarantees in this respect shall not at any time exceed in the aggregate the sum of £10,000,000, and any loss suffered in respect of any such transaction is to be borne by the Consolidated Fund.

  8. Buy and sell securities of the New Zealand or United Kingdom Governments, or securities guaranteed by the Government of New Zealand or by the Government of the United Kingdom.

  9. Buy and sell currencies of other countries.

  10. By authority of the Governor-General in Council, underwrite any loan proposed to be raised by the New Zealand Government, or by the State Advances Corporation of New Zealand.

  11. Issue and manage loans for the Government or any local authority or public body in New Zealand.

  12. Borrow moneys outside New Zealand for any purpose connected with the issue, repayment, or conversion of any New Zealand Government securities.

  13. Keep a register of inscribed stock on behalf of a local authority or public body.

  14. Organize a clearing system.

  15. Act as a correspondent for overseas banks or as agent of other reserve banks.

  16. Do any other banking business not prohibited by the Act.

The following gives a summary of those restrictions upon the conduct of business by the Bank as stated in the Reserve Bank of New Zealand Act, 1933, and in later amendments. It may not issue banknotes of a denomination less than ten shillings; engage in trade or otherwise have a direct interest in any commercial, industrial, or similar undertaking; purchase the shares of any other bank in New Zealand or elsewhere (except shares of the Bank of International Settlements) or grant loans on the security of any shares that the Bank is prohibited from purchasing; make unsecured loans or advances; purchase or make advances on the security of real property, except so far as may be required to enable the Bank to conduct its business; pay interest on any moneys deposited with the Reserve Bank by any other bank or pay interest on any other moneys placed on deposit or on current account with the Bank, except that it may pay interest to the New Zealand Government on Government funds held by the Bank outside New Zealand; allow the renewal of maturing bills of exchange, promissory notes, or other similar documents, purchased or discounted by or pledged to the Bank; draw or accept bills payable otherwise than on demand; and it may not grant accommodation to any state Department, local authority, or public body in excess of certain limits.

On the commencement of business on 1st August, 1934, the Public Account was transferred to the Reserve Bank, and the management of the public debt was taken over from the Treasury by the Reserve Bank as from the 1st October, 1936.

The net profits of the Bank are paid to the Consolidated Fund, provided that the Bank's General Reserve Fund is not less than £1,000,000. If the Reserve Fund falls below that level, part of the profits must be credited to the Reserve Fund. The net profits for the year ended 31st March, 1950, which were subsequently paid to the Consolidated Fund, amounted to £774,833, as compared with £739,931 for the previous year.

Any appreciation or depreciation of assets due to alteration in the exchange rate are to be credited to or borne by the Consolidated Fund. In accordance with this provision, the Reserve Bank was credited with the sum of £20,576,207 from the Consolidated Fund in early 1949 by the Government as a result of the alteration of the exchange rate to parity with sterling as from 20th August, 1948.

The net reserve ratio as prescribed by the principal Act—that is, the ratio of gold coin and bullion, plus sterling exchange, and net gold exchange, minus liabilities in currencies other than New Zealand, to the aggregate amount of notes in circulation and other demand liabilities—maintained a high but oscillating percentage from 1936 to late in 1938. It then dropped steeply, and for most of 1939 was little above the then statutory limit of 25 per cent. From the outbreak of war it recovered somewhat, owing to agreements enabling the expeditious crediting of the proceeds from staple exports, which, combined with wartime tardiness in bringing many items to charge, had the effect of raising the level of sterling exchange. During the ensuing period the ratio fluctuated within wide limits, but showed a rising tendency from October, 1944, the average for the calendar year 1947 being 74 per cent. As a consequence of the exchange adjustment bringing the New Zealand currency into parity with sterling as from the 20th August, 1948, there was a sharp fall in the net reserve ratio, the 1948 average being 56 per cent. In 1949, the ratio fell still further to an average for the year of 38 per cent.

The provisions in regard to the maintenance of reserves were amended by the 1950 amendment Act (see page 609)

Details of the liabilities and assets of the Bank at the end of June for the years 1946–50, and weekly averages for the calendar years 1939–49, are shown in the following tables.

LIABILITIES OF RESERVE BANK

Year.Capital and General Reserve Fund.Bank-notes.Other Demand liabilities.Other Liabilities.Total Liabilities.
State.Banks.Other.
 £££££££
Average for Calendar Year
19391,500,00016,081,5872,777,61710,742,935313,765499,54131,915,445
19401,500,00019,290,8555,894,53214,773,895327,396921,34342,708,021
19411,500,00022,045,9628,864,32411,955,995756,5031,121,87546,244,649
19421,500,00025,764,32212,091,83318,692,6221,412,1641,435,38860,896,629
19431,500,00032,586,60815,575,57126,704,0291,218,7581,763,47479,348,440
19441,500,00037,453,36713,234,44732,987,075916,3242,182,40888,273,621
19451,500,00041,122,77312,227,83043,971,5261,011,9492,561,206102,395,284
19461,500,00045,169,05017,302,43159,731,485523,8103,419,309127,646,085
19471,500,00047,682,43813,264,61557,102,327482,9363,410,632123,442,948
1948*1,500,00048,930,09713,227,57157,706,393380,4993,614,572125,359,132
19491,500,00051,311,53111,383,92973,837,108354,2833,868,401142,255,252
At End of June
19461,500,00044,546,22018,573,07860,212,448818,1903,086,889128,736,825
19471,500,00046,984,0069,710,48962,528,167356,4414,510,275125,589,378
19481,500,00047,790,75011,996,00762,125,037454,4363,341,089127,207,319
1949*1,500,00050,309,9387,541,88186,257,436605,7413,653,195149,868,191
19501,500,00054,147,57718,262,29476,879,1564,825,0374,534,109160,148,173

ASSETS OF RESERVE BANK

Year.Reserve.Subsidiary Coin.Advances.Investments.Other Assets.Total Assets.Net Reserve Ratio.
Gold.Exchange.Marketing.Other.

* On and after the 20th August, 1948, overseas assets and liabilities were converted into New Zealand currency at rate £(Stg.)100 = £(N.Z.)100.

I.e., Reserve, less liabilities in currencies other than New Zealand currency, expressed as a percentage or notes and other demand liabilities.

 £££££ £ £££££ Per Cent.
Average for Calendar Year
19392,801,8235,311,963217,4036,095,06113,608,8463,661,654218,69531,915,44527.02
19402,801,84511,121,140133,2163,436,83221,791,0373,028,696395,25542,708,02134.41
19412,801,87416,101,40763,4974,840,71817,095,6723,795,2471,546,23446,244,64943.22
19422,801,87822,468,31048,2266,787,03623,140,1934,189,5861,461,40060,896,62943.50
19432,801,87827,518,92045,8504,475,35432,786,8088,964,9482,754,68279,348,44039.74
19442,801,87833,719,80654,1952,760,05834,860,96211,509,3202,567,40288,273,62143.09
19452,801,87860,064,38229,2732,084,99424,162,64211,797,1441,454,971102,395,28463.87
19462,801,87881,332,47136,015961,24035,127,2295,991,1981,396,054127,646,08568.49
19472,801,87885,299,96246,6701,157,20328,515,9044,575,7711,045,560123,442,94874.25
1948*2,802,09565,090,053104,3721,698,05537,619,25210,496,1177,549,188125,359,13256.40
19493,222,77548,995,317193,1103,481,53042,534,64141,855,3691,972,510142,255,25238.11
At End of June
19462,801,87885,519,84043,069 34,025,0004,016,2422,330,796128,736,82571.10
19472,801,87893,932,58947,491602,58923,577,6773,868,093759,061125,589,37879.82
19482,802,14779,521,722110,3531,838,09134,202,6007,868,093864,313127,207,31967.26
1949*3,359,31758,963,306208,1233,875,19134,537,38548,094,301830,568149,868,19143.04
19504,258,72658,651,639143,6175,093,54458,433,45527,658,1425,909,050160,148,17340.80

TRADING BANKS.—The Banking Act, 1908, which consolidated the law of New Zealand relating to the general business of banking in this country, provides that the incorporation of banks by Royal Charter shall be as effectual within New Zealand as Acts of the General Assembly. The number of directors is prescribed by the Act, and authority is given to any bank to increase its capital on a resolution of the shareholders. Transfers of shares on which there is any liability must be approved by the directors or their duly appointed attorney or attorneys. A sworn copy of an entry in the books of a bank shall in all legal proceedings be evidence of such entry, and a bank is not required in any legal proceedings to which it is not a party to produce its books before a Court unless ordered by a Judge for special cause. Provision is made for the destruction of cheques, drafts, bills of exchange, or promissory notes after the expiration of ten years from the date thereof in the case of documents payable on demand or from the due date in the case of other documents.

Part II of the Bills of Exchange Act, 1908, consolidated the law relating to cheques on a bank.

The provisions of sections 113–116 of the Companies Act, 1933 (relating to branch registers), apply to banks incorporated in New Zealand; and those of Part XIII (imposing restrictions on the sale of shares and debentures) apply to companies incorporated outside New Zealand for the purpose of carrying on banking in New Zealand or elsewhere; otherwise the Companies Act does not apply to banks.

With the establishment of the Reserve Bank of New Zealand, which commenced to function on 1st August, 1934, there was inaugurated an entirely new era in banking practice in New Zealand. The function of note-issue was transferred from the trading banks to the Reserve Bank; while all gold coin or bullion held by trading banks for their own account was required by the Reserve Bank of New Zealand Act, 1933, to be transferred to the Reserve Bank in exchange for equivalent notes of the Reserve Bank or for credit with that Bank. The basis of payment was £3 17s. 10½d. per ounce of standard—i.e., eleven-twelfths fine—gold content, which was the price at which such gold (in actual fact, coin only) had originally been acquired by the trailing banks. Any profit derived from the sale of this gold overseas by the Reserve Bank accrues to the State and not to the Reserve Bank.

While the regulation of currency exchange is now a function of the Reserve Bank, commercial exchange transactions are still carried out through the medium of the trading banks.

Each trading bank is required to maintain with the Reserve Bank a balance of not less than 7 per cent. of its demand liabilities in New Zealand, and 3 per cent. of its time liabilities in New Zealand. These requirements may be varied by the Governor of the Reserve Bank, acting with the authority of the Minister of Finance, but not so as to be less than the percentages quoted above.

There are six banks trading in New Zealand, two of these institutions—the Bank of New Zealand and the National Bank of New Zealand—being incorporated by special Acts of the General Assembly of New Zealand. The other four banks, which are predominantly Australian institutions, have in the aggregate much greater capital resources, &c., than the two New Zealand banks. The close Australian affiliations of the Australian banks operating in New Zealand resulted in the past in an interlocking between the Australian and New Zealand financial structures, the separation of New Zealand business being one of the major motives leading up to the founding of the Reserve Bank.

Bank of New Zealand.—On the passing of the Bank of New Zealand Act, 1945, which came into operation on 1st November, 1945, the Bank of New Zealand became a State trading bank. Prior to the passing of the Act the Bank was partly State-owned, the New Zealand Government holding preference and certain long-term mortgage shares to the aggregate value of £2,109,375, out of a total paid-up capital of £6,328,125. The Act provided for the acquisition by the Crown of the whole of the remaining shares registered in New Zealand, and also made provision for the purchase by the Crown of shares registered in the United Kingdom or Australia.

The gross profit of the Bank for the year ended 31st March, 1950, was £2,456,399, while expenses amounted to £2,052,739, leaving a net profit of £403,660. Comparable figures for the previous year were £2,473,798, £2,073,818, and £399,980 respectively. The total assets at 31st March, 1950, amounted to £102,585,434, the principal items comprising this total being coin, Reserve Bank notes, and deposits with bankers, £37,468,919; money at call and short notice, Government securities and other securities in London, £7,173,207; New Zealand Government securities, £6,998,267; and advances, &c., £37,547,887. The principal item of liabilities was deposits (£83,826,003), while bills payable, &c., amounted to £7,493,397. The reserve fund, which is invested in United Kingdom Government securities, amounted to £3,575,000, and provision for taxation to £520,000. The paid-up capital of the Bank remained unaltered at £6,328,125.

Liabilities and Assets of Trading Banks.—Statements of liabilities and assets of the trading banks were gazetted quarterly up to 1934. Since the Reserve Bank commenced operations the trading banks have been required to submit at monthly intervals a return of liabilities and assets in respect of New Zealand business. Averages for calendar years, 1939–49, and figures as at the last Monday in June, 1946, and the last Wednesday in June of later years, are given in the next table.

LIABILITIES OF TRADING BANKS

Year.Demand Liabilities.Time Liabilities.Total Liabilities
In New Zealand.Outside* New Zealand.In New Zealand.Outside* New Zealand.

* On and after 20th August, 1948, overseas liabilities were converted into New Zealand currency at rate £(Stg.)100 = £(N.Z.)100.

 £ (000)£ (000)£ (000)£ (000)£ (000)
Average for Calendar Year
193933,0422,21630,17852070,956
194047,8302,73530,88327281,720
194152,5201,66929,02925683,474
194263,56065528,59320393,011
194378,54949629,100121108,266
194488,64453930,481101119,765
194599,83669231,63488132,250
1946117,0711,33434,414100152,919
1947128,1154,87637,870317171,178
1948138,2116,94740,403295185,856
1949150,6987,05639,016439197,210
At End of June
1946116,6331,38033,49586151,594
1947131,7715,43837,18692174,487
1948137,9075,90041,646285185,738
1949153,6217,86138,666489200,637
1950165,4328,34440,194491214,462

ASSETS OF TRADING BANKS

Year.Coin and Bullion.Reserve Bank Notes.Balances held in Reserve Bank.Overseas Assets.*Securities held.Advances and Discounts.Land, Buildings, &c.Total Assets.

* On and after 20th August, 1948, overseas assets were converted into New Zealand currency at rate £(Stg.)100 = £(N.Z.)100.

 £ (000)£ (000)£ (000)£ (000)£ (000)£ (000)£ (000)£ (000)
Average for Calendar Year
19397313,90911,1256,69811,52554,2421,85590,085
19407034,29215,21114,33516,83047,7201,876100,967
19417594,45312,46213,63321,02249,7011,932103,962
19426644,05119,08814,15928,10645,1291,961113,158
19436224,64527,65011,87337,67243,0211,931127,414
19447045,16533,51512,58638,56546,8061,921139,262
19456786,05845,66614,42731,80851,6181,928152,183
19467276,88060,18613,97628,46258,3371,957170,525
19479097,50057,63118,48823,03776,2472,118185,930
19481,4107,87259,53120,70618,89686,4702,180197,065
19491,5158,69775,90822,02114,67081,9812,278207,069
At End of June
19467226,71060,18213,61729,05855,3431,930167,562
19478907,14262,39117,95423,19173,9132,111187,592
19481,5157,25262,03022,35518,32786,8502,157200,486
19491,578,04686,16121,97313,55480,0702,250213,611
19501,6949,13176,78727,44013,41891,5732,465222,508

Deposits and Advances.—The weekly averages of total deposits (together with the amount per head of mean population), and of total advances, and the ratio of advances to deposits for each of the last eleven calendar years, are given in the following table.

Year.Deposits.Advances.
Not Bearing Interest (Free.)Bearing Interest (Fixed.)Ratio of Free to Fixed.Total.*Per Head of Mean Population.Total Amount.Ratio to Deposits.

* Including Government deposits.

 ££Per Cent.££s.d.£Per Cent.
193935,216,07131,393,759112.1867,279,451416354,745,80181.37
194044,046,43132,567,750135.2577,364,430475047,954,49961.99
194149,202,55930,747,779160.0280,720,1014991049,746,39761.63
194259,513,74430,320,628196.2890,880,3395510645,439,52050.00
194373,977,31931,152,857237.47106,323,897650143,249,58140.68
194483,680,12632,742,165255.57117,568,290710146,773,49839.78
194594,627,25234,197,628276.71130,137,93976151051,766,19839.78
1946111,289,14737,019,091300.63149,777,364850858,270,84338.90
1947122,068,10440,459,866301.70164,169,520911576,475,73446.58
1948130,940,69242,690,257306.7217.5,568,6709571088,159,76450.19
1949142,597,89441,292,234345.34180,092,0999818683,357,04244.79

It will be observed that free deposits have shown a phenomenal increase over the period covered by the table, the difference in the average for 1949 as compared with 1939 being £107,381,823 or 304.9 per cent. Fixed deposits commenced to move slowly upwards in 1943, and this movement was maintained until 1948, a slight recession being recorded in 1949. Advances reached a low point in 1943 after which there was a sharp upward movement up to and including 1948, but there was an appreciable fall in 1949. The substantial excess of deposits over advances in recent years has resulted in the balances maintained by the trading banks with the Reserve Bank being greatly in excess of statutory requirements (see page 589). The average amount held during 1949 was £86,161,000, whereas the minimum requirements amounted to £11,721,000 only.

The following diagram illustrates the movements that have occurred in deposits and advances from 1930 onwards, the figures used, as in the foregoing table, being the weekly averages for calendar years.

The average amount on deposit during each of the quarter months since March, 1946, is shown in the next table.

Month.1946.1947.1948.1949.1950.
 £££££
March143,608,272159,147,340175,225,327181,693,724200,731,186
June148,454,232167,044,348179,214,485189,566,588208,102,712
September152,678,546164,858,457173,980,340186,340,961196,349,451
December157,299,553166,421,470177,182,751189,987,053 

The average amount of advances outstanding during each of the quarter months since March, 1946, is next shown.

Month.1946.1947.1948.1949.1950.
 £££££
March57,096,83871,907,99694,149,09088,945,51394,282,753
June56,350,59175,246,54289,330,02081,950,15491,637,951
September59,354,27579,189,87986,191,48181,085,84797,387,772
December65,204,26686,416,62982,929,49783,347,044 

The following table shows the movement in advances, Government and other securities held, and deposits during the years 1939–49, the amounts being the averages of the figures for the last Monday of each month, from 1939 to 1946, and the last Wednesday of each month from 1947 to 1949.

Year.Advances.Securities held.Total Advances and Securities.Total Deposits.Ratio of Advances (plus Securities) to Total Deposits.
Government.Other.
 £££££Per Cent.
193954,241,25411,263,639261,19965,766,09267,579,82497.32
194047,706,72516,490,489339,02664,536,24078,147,41082.58
194149,631,07320,333,503688,86570,653,44181,269,15786.94
194245,100,67827,192,741913,45073,206,86791,705,84379.83
194343,020,53936,103,0481,569,00480,692,591107,151,32375.31
194446,812,81536,140,5652,424,29985,377,679118,484,54572.06
194551,601,31029,334,7212,473,17483,409,205130,888,10963.73
194658,341,77226,168,2282,293,47686,803,476150,682,01457.61
194776,245,44920,913,0532,123,54999,282,051164,894,00760.21
194886,443,92616,953,4751,942,263105,339,664177,636,66059.30
194981,751,34912,856,2261,813,36396,420,938188,385,16151.18

The fall in the value of Government securities held by the trading banks in recent years reflects the policy of the Government, which has been to repay the trading banks' holdings of stocks as they mature, and not to permit reinvestment of the proceeds in Government stocks.

An analysis of advances of the New Zealand trading banks at quarterly intervals is published by the Reserve Bank of New Zealand, and the classification as at the last Monday in March for the year 1946, and the last Wednesday in March for later years is given in the following table.

Advances toAt End of March,
1946.1947.1948.1949.1950.
Farmers—     
 £ (000)£ (000)£ (000)£(000)£(000)
  Mainly dairy6,4207,3097,2667,2106,781
  Mainly wool6,4826,8876,0765,7954,883
  Mainly meat1,3751,6371,3741,2031,124
  Mainly agricultural438616713680689
  Mixed4,5925,1784,6014,4243,828
Industries allied to primary production—     
  Dairy companies, factories, &c.8261,153846628497
  Freezing-works, meat companies, &c.7,7567,6947,4098,5849,411
  Woollen-mills7548661,4861,5271,442
  Other1,5983,7544,4906,4399,716
Other manufacturing and productive industries6,5158,34714,18315,03714,774
Merchants, wholesalers—     
  Mainly importers2,4554,2627,9625,9257,578
  Others9191,4024,9242,1552,829
Retailers3,0714,6459,5057,6598,258
Transport—     
  Shipping8550117181378
  Other7911,2001,6361,7131,767
Local and municipal authorities, public utility concerns650662722905989
Stock and station agents748972662644641
Hotels (public and private), restaurants, &c.1,3962,1902,3672,2672,082
Financial companies, societies, &c.8301,1171,5411,7711,925
Professional1,4471,7131,9681,9992,045
Private individuals6,2127,6838,4588,3349,163
Other2,4413,3004,2143,6673,850
    Total advances57,80172,63792,52088,74594,649

As part of the Government policy designed to combat inflationary tendencies during wartime, from 1943 onwards the trading banks were precluded from increasing their holdings of securities, and existing holdings of Government stock were repaid as they matured. An earlier measure, from January, 1942, was the selective control of trading-bank advances by the Reserve Bank in co-operation with the trading banks. The general aim was to prevent the expansion of bank credit for speculative and other purposes considered inimical to the war effort. The necessity for such controls was also a feature of the immediate post-war years. The Reserve Bank issued statements in 1947 and 1948 outlining the existing policy in this respect, and indicating the inclusion in the restricted categories of advances for purely investment purposes, capital expenditure for business, industrial and commercial purposes, building, purchasing or refinance of dwellings, in addition to those speculative and other classes previously covered.

Marginal cases and others involving special circumstances have been referred to the Reserve Bank, the trading banks from time to time being given more discretion in dealing with such cases.

In March, 1950, this discretion was extended so that marginal applications needed to be referred to the Reserve Bank only where the term of the proposed advance did not exceed two years and where the amount was also in excess of £2,000.

A major relaxation in the policy became effective from the 24th May, 1950. Advances for amounts up to £2,000 from each applicant were exempted from control while the discretionary limit was raised up to an amount not greater than £4,000, the latter being in order to allow for the new situation in which the first £2,000 was freed from control.

The number of restricted classes has also been reduced. In 1947 temporary finance for one year for the building of dwellings, and again in August, 1949, advances to enable primary producers to purchase essential farm equipment and machinery up to the limit of £1,500, provided repayment was made within two years, were taken out of the restricted categories. As from the 24th May, 1950, advances for the following classes of purchase were excluded from control, irrespective of the amount concerned: (a) live-stock needed for primary production; (b) farm machinery, farm vehicles, and farm implements; and (c) tools of trade (exclusive of industrial machinery).

Debits and Clearings.—The following table shows weekly averages of bank debits and clearings for each of the years 1939 to 1949.

Year.Debits other than Government.Government Debits.Clearings.
 £ (000)£ (000)£ (000)
193918,4142,0719,750
194019,3532,39110,800
194119,8442,59611,403
194220,0463,04812,165
194323,0083,60414,211
194424,5673,86015,205
194526,7914,27716,625
194631,9124,76419,388
194740,5474,92723,646
194843,0625,86225,254
194945,1616,32926,228

Debits represent the total amount debited to customers' accounts at all branches, and clearings show the total outward exchanges delivered at all branches. These figures, which have been compiled from the weekly returns furnished by the six trading banks to the Government Statistician, give a reliable indication of changes in the volume of business. Following the depression “low” of 1932 there was a substantial recovery which continued until 1938, when a slight recession was recorded. The upward movement was resumed in 1939 and has since continued, the 1946 and 1947 increases being particularly sharp ones. During the period covered by the foregoing table the volume of ordinary debits increased by 145 per cent., while clearings showed an increase of 169 per cent. Government debits with trading banks fell to comparatively small proportions as a consequence of the opening of the Reserve Bank, but an upward movement has been in evidence since 1936.

Averages of debits (other than Government) and of clearings for the four or five weeks ending on the last Monday of each of the quarter months in 1946, and the last Wednesday for later years, are now given.

Month.1946.1947.1948.1949.1950.
 £££££
Debits, other than Government
March35,860,16444,965,13150,681,40856,504,88064,796,602
June32,015,11239,005,99344,859,61844,197,84255,101,836
September31,356,63336,689,12641,622,50441,854,07850,180,423
December37,025,41248,292,53945,897,76648,242,366 
Clearings
March24,970,95428,587,47130,308,95434,659,91141,338,589
June19,069,12123,595,47627,344,14827,063,94934,648,707
September18,249,47221,397,76423,623,99023,736,60929,329,623
December20,749,89327,519,49726,356,21426,928,498 

Unexercised Overdraft Authorities.—Particulars of aggregate unexercised overdraft authorities of trading banks are available from April, 1936. Following are the averages for calendar years and the amount at the end of June, for each of the years 1940–50.

Year.Average for Calendar Year.At End of June.
 ££
194029,257,10829,643,228
194132,319,79632,057,178
194234,394,49133,891,804
194335,847,50036,201,863
194437,120,06238,381,075
194540,273,68638,827,474
194645,040,51446,490,947
194746,669,29648,261,554
194850,649,89150,215,837
194957,686,12058,730,338
1950 63,116,374

NOTES IN CIRCULATION.—As indicated elsewhere, the Reserve Bank assumed the note-issuing function on the 1st August, 1934. As from the 10th January, 1935, the notes of the trading banks ceased to be legal tender, while on 1st August, 1936, the liability for the remaining outstanding trading-bank notes was taken over by the Reserve Bank, thus completing the process of the transfer of the note-issue to the Reserve Bank. The following table shows the weekly-average note-circulation for the calendar years 1939–49, and the position as at the last Monday in June for the year 1946, and the last Wednesday in June for later years.

Year.Total Note Issue.Notes held by Trading Banks.Net Note Circulation.
 £££
Average for Calendar Year
193916,081,5874,067,73512,013,852
194019,290,8554,500,14114,790,714
194122,045,9524,611,20117,434,751
194225,764,3214,267,62121,496,700
194332,586,6074,950,45727,636,150
194437,453,3675,351,39532,101,972
194541,122,7736,139,73234,983,041
194645,169,0506,970,70738,198,343
194747,682,4387,555,35640,127,082
194848,930,0978,133,75340,796,344
194951,311,5318,776,50142,535,030
At End of June
194644,546,2206,710,49137,835,729
194746,984,0067,141,98139,842,025
194847,790,7507,251,37340,539,377
194950,309,9398,045,91442,264,025
195054,147,5779,130,68045,016,897

The following diagram illustrates the expansion in the note issue since the year 1908.

The year 1935 witnessed the commencement of an almost continuous upward movement in the note circulation, due to more favourable economic conditions in association with such factors as the restoration of wage and salary cuts, higher wage-rates, greater activity on public works and housing, increased pensions, &c. Between the months of September, 1935, and September, 1939, the increase in the average note circulation was 98 per cent. Following the outbreak of war, the increase in the note circulation quickened, the expansion in 1942 and 1943 being particularly sharp. The upward movement has since continued, but at a considerably lesser rate.

The following reasons have been given by the Reserve Bank for the increase in the net note circulation noted over the last ten years. The basic fact is the substantial increase in incomes and in the total volume of money (coin, notes, bank demand deposits), the proportion of notes to the total volume of money remaining at a level of approximately 20 per cent. Other reasons include a rise in the number of cash transactions, in price-levels, and an apparent fall in the velocity of circulation.

The following table of index numbers published by the Reserve Bank illustrates the changes that have occurred in the active note circulation in the United Kingdom, Canada, Australia, and New Zealand for the calendar years 1947 to 1949, the base being August 1939 (= 100).

1947.1948.1949.
United Kingdom.*Canada.Australia.New Zealand.United Kingdom.*Canada.Australia.New Zealand.United Kingdom.*Canada.Australia.New Zealand.

*Notes and coin, excluding notes and coin held by Bank of England Reserve, London clearing banks, and Scottish and Northern Ireland banks.

†Chartered bank note circulation and Bank of Canada notes—average of daily figures.

January293483510336272486492346263513511350
February293483511333264487488342262510511344
March295489513332265494496342266519517346
April296489520338265497496343271529527357
May295486518337266500492343269523525355
June295485521339267501495342271524532356
July297485524340271509495342274526536357
August296486528341269510495345271522535360
September292490515338264522495343268531539360
October289495499339263535497345267537543369
November285498496341263531499345267531547372
December285502507358269534517358273536571392

An analysis of the net banknote circulation, as at the last Monday in June over the years 1940–46 and the last Wednesday in the same month for later years, is compiled by the Reserve Bank of New Zealand, and the figures for the years 1940–50 are contained in the following table.

Last Balance Day in June.Reserve Bank Note Issue.Total Reserve Bank Issue in Circulation.Trading Banks' Notes Outstanding.Total Net Note-circulation.
10s.£1.£5.£10.£50.
 £ (000)£(000)£ (000)£(000)£ (000)£ (000)£ (000)£ (000)
19406444,9227,1663851,17314,29040914,699
19417155,7178,5849491,45017,41539917,814
19427966,41010,5901,5421,74421,08238721,469
19439297,46614,1392,2932,31627,14338127,524
19449638,01017,2432,9792,75131,94637632,322
19451,0118,74019,3063,0612,00634,12437034,494
19461,1149,44321,6523,5101,75137,47036637,836
19471,1449,37322,5824,3452,03539,47936339,842
19481,1769,23623,0554,7491,96340,17936140,540
19491,2089,35324,1025,1372,10641,90635842,264
19501,2859,32825,8685,7732,40644,66035745,017

OVERSEAS ASSETS OF BANKS.—Under section 46 of the Reserve Bank of New Zealand Act, 1933, the trading banks are required to supply returns to the Reserve Bank at monthly intervals, showing, inter alia, overseas assets held and liabilities incurred on account of New Zealand business. From these statements, published in the New Zealand Gazette, and the weekly gazetted statements of assets and liabilities of the Reserve Bank, the following table has been compiled.

Year.Trading Banks' Overseas Assets.Reserve Bank's Holdings of Sterling Exchange.Gross Overseas Assets.Overseas Liabilities.Net Overseas Assets.
In London.Elsewhere.

*On and after the 20th August, 1948, overseas assets and liabilities were converted into New Zealand currency at rate £(Stg.)100 = £(N.Z.)100.

 £(N.Z.)£(N.Z.)£(N.Z.)£(N.Z.)£(N.Z.)£(N.Z).
Average for Calendar Year
19395,068,1341,629,5795,510,10212,207,8152,765,5519,442,264
194012,362,5831,972,41111,706,77926,041,7733,103,08622,938,687
194111,053,6152,578,98915,879,50329,512,1071,942,70727,569,400
194211,346,9812,812,20822,922,25837,081,447903,32036,178,127
19439,955,1591,918,14027,678,17739,551,476714,86738,836,609
194410,672,2941,905,71033,817,28046,395,284767,90145,627,383
194512,480,8211,946,48361,702,17476,129,478858,96375,270,515
194611,638,6122,337,30483,265,08197,240,9971,486,37995,754,618
194713,972,5104,516,07985,055,755103,544,3445,442,09298,102,252
1948*17,606,2953,099,31464,102,72084,808,3297,307,36877,500,961
194918,020,7923,999,77748,741,40370,761,9727,542,81263,219,160
At End of June
194210,991,8452,568,86824,722,57538,283,288977,37837,305,910
19438,318,6872,347,98829,684,82240,851,497683,19340,168,304
19449,162,7162,235,39331,597,13242,995,2411,957,38941,037,852
194513,909,7501,920,31062,417,17378,247,233681,64577,565,588
194612,040,7981,576,49685,519,84099,137,1341,518,51797,618,617
194712,922,3915,031,70993,932,589111,886,6896,818,407105,068,282
194819,592,8622,762,35579,521,722101,876,9396,200,18795,676,752
1949*17,311,6904,660,93758,963,30680,935,9338,390,18972,545,744
195023,014,3764,425,97158,651,63986,091,9868,868,58177,223,405

Overseas assets declined heavily during the three years 1937–39, particularly after May, 1938, ascribable to three principal causes—(1) the repatriation of capital temporarily held in New Zealand, (2) over-importation, and (3) investment abroad of New Zealand capital. In December, 1938, the Government took action to check the fall in the sterling funds, and introduced import and export control and also the control of overseas remittances. These measures combined with the earlier crediting of the proceeds of the country's staple exports to the United Kingdom as a result of United Kingdom governmental purchases and other factors arising out of wartime agreements brought about a marked improvement in the exchange position early in 1940. Although there were fluctuations from time to time, each subsequent year witnessed a further improvement in the general level, until the end of 1946, when the net amount was £104,063,073. The 1947, 1948, and 1949 values as at the end of December showed successive declines from the previous total and amounted to £75,700,184, £56,533,714, and £52,343,617 respectively. The total of £77,223,405 at the end of June, 1950, however, shows an increase of £4,677,661 over the corresponding June, 1949, figure of £72,545,744. The fall in the latter years is principally due to the financing of a greater volume and value of imports, the repayment of debt domiciled overseas, and, in late 1948, to the alteration in the exchange rate mentioned elsewhere in this section.

The following diagram shows the movement in the net amount of overseas assets (revised series) from 1936 onwards. The low level to which they had fallen in 1938, the progressive accumulation up to 1946, the contraction between the 1947 and 1949 years, and the recovery at the end of June, 1950, compared with June, 1949, are very strikingly illustrated.

In the preceding table the figures shown for the Reserve Bank holdings of overseas assets included sterling exchange only. In the following table, obtained from data given in the Statistical Summary of the Reserve Bank for September, 1950, a revised series showing net overseas assets is given. This includes, in addition to sterling exchange, the Reserve Bank holdings of foreign exchange and overseas investments, less its liabilities in other currencies.

Year.Net Overseas Assets (Revised Series).
Reserve Bank.Trading Banks.Totals.Reserve Bank.Trading Banks.Totals.
 Average for Calendar Year As at the End of June
19396.44.010.46.63.510.1
194012.211.323.515.012.627.5
194118.411.730.122.611.133.8
194225.213.338.526.712.639.3
194330.911.342.233.410.543.9
194437.811.949.835.210.745.9
194566.813.680.468.115.283.2
194688.212.5100.791.112.2103.2
194789.313.3102.697.012.4109.4
194870.613.584.183.816.2100.0
194956.114.570.666.413.680.0
1950   68.418.687.0

NOTE.—On and after 20th August, 1948, overseas assets and liabilities have been converted to New Zealand currency at a rate of £(Stg.)100 = £(N.Z.)100.

OVERSEAS RECEIPTS AND PAYMENTS.—Since the institution of exchange control in New Zealand the Reserve Bank has been able to make a comprehensive statement of the foreign exchange transactions of the banking system for the period during which the control has been operating. A classification of the transactions for the March years 1948–49 and 1949–50 is given below:—

Year Ended 31st March.
1949.1950.

*Excluding interest and remittances for imports under departmental certificates but including remittances for general purposes, a substantial portion of which is used in payment for Government imports.

Receipts£(000)£(000)
Current items—  
  Exports143,896154,717
  Other trade transactions8,1875,338
  Commissions, royalties, and insurance8281,208
  Donations and allowances1,0801,309
  Travellers' expenses7871,147
  Interest and dividends1,0151,102
  Legacies1,3451,183
  Private debts due in New Zealand782642
  New Zealand Government receipts, n.e.i.5771,080
  Total, current items158,497167,726
  Capital items11,3856,044
  Unidentified 327
    Total, receipts169,882174,097
Payments  
Current items—  
  Imports109,025122,797
  Other trade transactions5,5936,198
  Commissions, royalties, and insurance1,4412,075
  Donations and allowances1,2251,327
  Travellers' expenses2,6454,859
  Interest and dividends6,3776,140
  Legacies1,5881,413
  Private debts due overseas3,5341,310
  Government payments*22,07717,606
  Film hire and entertainments627675
    Total, current items154,132164,400
Capital items—  
  Debt repayment—  
    Government3,2421,832
    Local body1,485697
  Other capital payments12,9148,171
    Total, payments171,773175,100

Foreign currencies have been converted into New Zealand currency at the rate of exchange ruling at the time of each transaction—viz., on the basis of £(N.Z.)125 = £(Stg.)100 up to and including 19th August, 1948, and thereafter on the basis of parity with sterling.

POST OFFICE SAVINGS-BANK.—The establishment of the Post Office Savings-bank was authorized by the Post Office Savings Banks Act, 1865, but actual business did not commence until 1st February, 1867. The present authority is contained in the Post and Telegraph Act, 1928. The minimum deposit receivable, except in certain specified cases, is 1s., and no interest is given on any sum of less than £1. The present rate of interest on so much of the deposit as does not exceed £500 is 2½ per cent. per annum (from 1st June, 1942) and on so much as exceeds £500 and does not exceed £2,000 the rate is 2 per cent. No interest is payable to any depositor in respect of any amount of his deposit in excess of £2,000.

The Postmaster-General may pay deposits to a maximum of £200 to the legal representative of a deceased depositor without requiring him to take out letters of administration or to prove the will. This provision, together with another provision whereby a depositor may nominate one or more persons to receive part or all of the amount at credit after the depositor's death, enables a widow or orphan to obtain possession of perhaps much-needed funds without either delay or cost.

The number of post-offices open for the transaction of savings-bank business at 31st March, 1950, was 967.

The number of open accounts increased from 1,311,292 on the 31st March, 1949, to 1,372,672 on the 31st March, 1950. The large increase was due mainly to the transfer of matured war gratuity accounts to new Post Office Savings-bank accounts. In the table now given covering the activities of the Post Office Savings-bank, the figures do not take into account the school savings-bank accounts, or national investment accounts which are referred to later.

Year Ended 31st March.Number of Depositors, at End of Year.Total Amount of Deposits during Year.Total Amount of Withdrawals during Year.Excess of Deposits over Withdrawals.Interest credited.Total Amount to Credit of Depositors at End of Year.

*Excess of Withdrawals over deposits.

†Includes balance of £11,447,754 to credit of War Gratuity Savings-bank accounts which matured on 31st March, 1949, and included with Post Office Savings bank accounts as from that date.

‡If the transactions in respect of the former war gratuity accounts be excluded, deposits for the year totalled £77,963,430, withdrawals, £73,306,181, and the excess of deposit over withdrawals, £4,657,249.

  £££££
1940960,56525,151,28729,462,838−4,311,551*1,603,46758,002,003
1941992,79228,607,22125,319,1463,288,0751,666,71062,956,788
19421,039,78332,044,73425,376,7456,667,9891,820,60571,445,382
19431,086,99638,097,07026,889,33911,207,7311,816,82084,469,933
19441,128,93647,648,75435,580,16512,068,5892,075,67698,614,198
19451,161,88654,585,12042,158,65612,426,4642,451,628113,492,290
19461,203,18167,861,04255,626,41912,234,6232,787,413128,514,326
19471,239,94872,380,54362,747,0939,633,4503,094,491141,242,267
19481,277,26572,553,41468,660,4583,892,9563,307,081148,442,304
19491,311,29270,690,64067,722,7242,967,9163,438,790154,849,010
166,296,764
19501,372,67283,689,10982,824,706864,4033,821,285170,982,452

Under the War Service Gratuity Regulations 1945, war gratuity savings-bank accounts which matured on the 31st March, 1949, were deemed to be Post Office Savings-bank accounts on that date, and the total balance of the war gratuity accounts was amalgamated with the ordinary savings-bank figures as at the 31st March, 1949. The amount so transferred was £11,447,754, of which £7,654,908, at the option of the holders, was left in the savings-bank and £3,792,846 withdrawn, £1,843,071 of the amount withdrawn went to national savings investment accounts.

The withdrawal of the £3,792,846 from war gratuity savings-bank accounts after their amalgamation with the ordinary savings-bank figures had the effect of reducing the over-all excess of savings-bank deposits over withdrawals to £864,403.

The amount at the credit of depositors at the end of March, 1950, was £170,982,452, including £3,821,285 interest accruing to depositors for the year.

The average amount at credit of each depositor rose from £118 at the 31st March, 1949, to £125 at the 31st March, 1950. No doubt this increase was caused by the incorporation of the war gratuity saving-bank account balances with the ordinary savings-bank accounts, many of the former being above the average figure.

The securities standing in the name of the Postmaster-General on account of the Post Office Savings-bank Fund on the 31st March, 1950, represented a nominal value of £171,481,906. A summary of the investments is as follows:—

 £
New Zealand Government securities168,914,510
Local authority securities306,900
Securities held in London2,260,496
Total£171,481,906

SCHOOL SAVINGS-BANK.—The school savings-bank scheme was introduced in 1934 with the object of encouraging thrift amongst young people. The aim of the scheme is to promote the habit of regular banking every week so that upon commencing work the depositor will transfer his account to the Post Office Savings-bank and continue his weekly bankings out of his wages or salary.

Each depositor has a pass-book, and the lodgment of deposits is made to teachers at the school, the cash and deposit slips being handed in later at the post office. Separate accounts for each depositor are held at the savings-bank ledger office nearest to the school, and depositors may make withdrawals on demand. Interest is payable at the ordinary Post Office Savings-bank rates.

During the fifteen years of operation, depositors have banked £834,024 and received £44,069 in interest. On the 31st March, 1950, there were 65,000 active depositors with balances totalling £298,228. During the calendar year 1949 there were 672,489 deposits totalling £122,178. Since the inception of the scheme more than £200,000 has been transferred to the Post Office Savings-bank to form the nucleus of adult savings accounts.

A table showing the transactions in school savings-bank accounts during the last eleven years is appended.

Year Ended 31st December.Number of Schools Operating at End of Year.Total Number of Deposit Transactions During Year.Total Amount of Deposits During Year.Total Number of Withdrawal Transactions During Year.Total Amount of Withdrawals During Year.*Excess of Deposits Over Withdrawals.Interest Credited.Total Amount to Credit of Depositors at End of Year.

*Includes amounts transferred to Post Office Savings-bank.

  No.£No.££££
1939899392,99838,81313,08825,13813,6751,51980,804
1940934358,52036,68013,07527,1179,5631,81992,186
1941959341,41337,77712,53529,5948,1832,088102,457
1942978331,00342,66110,70329,69512,9662,431117,851
19431,003404,28161,36710,72339,10922,2582,982143,094
19441,045454,84571,50510,84646,44125,0643,622171,780
19451,089154,60274,8549,80951,59823,2564,237199,273
19461,133465,15079,20810,60156,33022,8784,769226,920
19471,170490,14182,05711,07265,50616,5515,396248,867
19481,193485,80684,32511,87671,78512,5405,804267,211
19491,402672,489122,17810,62094,10928,0696,682301,962

TRUSTEE SAVINGS-BANKS.—There are five trustee savings-banks—viz., Auckland, established in 1847; New Plymouth, 1850; Dunedin, 1864; Invercargill, 1864; and Hokitika, 1866. The total amount to the credit of depositors at the 31st March, 1950, was £34,942,977, representing an average account of £98 9s. 3d. Figures for the last eleven years are as follows:—

Year Ended 31st March.Number of Depositors at End of Year.Total Amount of Deposits during Year.Total Amount of Withdrawals during Year.Excess of Deposits over Withdrawals.Interest credited.Total Amount to Credit of Depositors at End of Year.

*Excess or withdrawals over deposits.

  £££££
1940274,4718,184,1148,523,416−339,302*380,96013,907,334
1941279,9848,218,8957,763,524455,371395,88814,758,593
1942285,5298,513,9647,570,149943,815427,55016,129,958
1943296,1409,127,0407,341,0431,785,997404,29418,320,249
1944307,22411,013,2588,863,7412,149,517443,98220,913,748
1945320,37211,228,4249,865,1831,363,241496,72122,773,710
1946329,34815,954,29612,054,0443,900,252580,10627,254,068
1947335,82117,306,05114,698,4462,607,605678,05130,539,724
1948343,14916,136,82215,622,395514,427723,79531,777,946
1949350,35315,994,13015,748,223245,907746,82432,770,677
1950354,87917,615,74616,234,2801,381,466790,83434,942,977

NOTE.–This statement does not include national savings investment accounts.

The following table shows the results of the transactions of each of the trustee savings-banks during the twelve months ended 31st March, 1950.

Bank.Number of Depositors at End of Year.Total Amount of Deposits during Year.Total Amount of Withdrawals during Year.Excess of Deposits over Withdrawals.Interest credited.Total Amount to Credit of Depositors at End of Year.
  £££££
Auckland238,9709,736,9479,317,104419,843497,58221,908,620
New Plymouth24,3301,207,4851,087,571119,91465,3852,825,698
Hokitika2,676126,55994,67331,8868,722385,396
Dunedin55,0122,306,3092,159,251147,058133,4995,603,723
Invercargill33,8914,238,4463,575,681662,76585,6464,219,540
    Totals354,87917,615,74616,234,2801,381,466790,83434,942,977

Following is a summary of trustee savings-banks' assets at the 31st March, 1949.

Bank.Mortgages.New Zealand Government Securities.Local Authority Debentures.Cash in Hand and at Banks.Total (including Other Assets).
 £££££
Auckland3,468,33118,889,3191,261,0981,391,74125,291,301
New Plymouth1,107,4692,015,381178,044327,7023,657,618
Hokitika208,339125,95317,55726,699388,866
Dunedin2,328,8363,886,545837,390296,2517,436,948
Invercargill654,8232,550,184283,446306,5693,848,700
    Totals7,767,79827,467,3822,577,5352,348,96240,623,433

The Trustee Savings-banks Act, 1948, consolidated all previous legislation dealing with trustee savings-banks.

NATIONAL SAVINGS.—The National Savings Act, 1940, made provision for the issue of savings bonds, in denominations of £1, £10, and £100, and the opening of special savings accounts with the Post Office and the Auckland, New Plymouth, Dunedin, and Invercargill trustee savings-banks. Investments are for a term of five years in the case of bonds, while moneys deposited in savings accounts are repayable according to the investment period, although the Act makes provision for the withdrawal of moneys before the due date of repayment on the grounds of hardship, emergency, &c. All amounts lodged prior to 30th June, 1943, were repayable on 30th June, 1945; amounts invested between 30th June, 1943, and 30th June, 1944, on 30th June, 1946; between 30th June, 1944, and 30th June, 1945, on 30th June, 1947, and so on. These investments bear interest at the rate of 3 per cent. per annum.

The following table gives particulars of deposits, withdrawals, &c., in regard to national savings accounts from the inception of the scheme to 31st March, 1950.

Year Ended 31st March.Deposits.Withdrawals.Interest to 30th June, Previous Year.Amount to Credit of Depositors.

*Six months only.

 ££££
1941*718,077460 717,617
19422,476,2079,44810,0633,194,439
19432,425,20425,25571,6755,666,063
19447,257,53863,815150,47513,010,261
19457,267,398178,445357,73320,456,947
19467,607,4131,706,754559,77526,917,381
19476,175,3682,306,164773,26031,559,845
19487,285,4233,680,450905,43936,070,257
19497,032,1193,943,0791,037,92140,197,218
195010,576,7074,281,5881,178,81047,671,147
    Totals58,821,45416,195,4585,045,151 

The next table gives particulars of national savings bonds sold and redeemed during the same period.

Year Ended 31st March.Value of Bonds sold.Value of Bonds redeemed.

*Six months only.

 ££
1941*611,709 
19422,786,299 
19431,356,301 
19443,121,859 
19452,609,105 
19461,313,723520,596
1947457,0412,089,396
1948492,6972,936,265
1949434,6873,169,870
1950457,7672,420,800
  Totals13,641,18811,136,927

COMPANY, ETC., DEPOSITS.—Statistics of deposits with building and investment societies and trading companies were compiled from returns furnished to the Treasury up to the 31st March, 1947. A table showing the amounts held on deposit, classified according to the term of the deposit together with the average rates of interest thereon, as at the 31st March of each of the years 1938–47 is available on page 526 of the 1947–49 Year-Book.

SUMMARY OF BANK DEPOSITS.—In the preceding paragraphs statistics of deposits with various classes of banking institutions are shown. It is of interest to show the position in summary form in respect of all classes of deposits (other than Government deposits and trading-bank deposits with the Reserve Bank).

As at 31st March, 1950, £
Deposits with Reserve Bank (excluding Government and trading-bank deposits)783,073
Deposits with trading banks (excluding Government)198,010,720
Deposits with Post Office Savings-bank170,982,452
Deposits with school savings-banks298,228
Deposits with trustee savings-banks34,942,977
Deposits in national savings account47,671,147
Total£452,688,597

The above deposits are bank deposits only. There were on 31st March, 1947, the latest date for which this information is available, deposits of £5,541,200 with building and investment societies and of £4,991,073 with trading companies. It should be noted also that other classes of deposits exist—e.g., the Common Fund of the Public Trust Office.

VOLUME OF MONEY IN CIRCULATION.—The following information, which has been published by the Reserve Bank of New Zealand, sets out in detail the changes that have occurred in the amount of money in circulation in the form of coin, notes, and demand deposits of the Reserve Bank and of the trading banks. The first table shows the volume of such money as at the last balance day in January of each of the years 1939 and 1943–50, the figures quoted being in £(N.Z.) millions.

1939.1943.1944.1945.1946.1947.1948.1949.1950.
 £ (m)£ (m)£ (m)£ (m)£ (m)£ (m)£ (m)£ (m)£ (m)
Coin (estimated)1.32.22.42.62.93.03.33.13.3
Notes held by public11.024.931.233.636.939.740.940.944.5
Demand deposits at—         
  Reserve Bank*2.913.315.19.820.215.813.59.69.2
  Trading banks36.274.788.593.6112.0126.1134.5147.4163.1
    Totals51.4115.1137.3139.7172.0184.6192.1201.0220.0
Change during year+ 0.1+ 26.5+22.2+ 2.4+32.4+ 12.6+7.5+8.9+ 19.0

The cumulative effect of the changes in the volume of money during the eleven years' period covered by the foregoing table is contained in the following summary.

1939–46 (Seven Years).1946–50 (Four Years).

*Government and other demand deposits at Reserve Bank, excluding trading banks' balances at Reserve Bank.

†Trading banks' total demand liabilities in New Zealand.

 £(m)£ (m)
Coin (estimated)+ 1.5+ 0.4
Notes held by public+ 26.0+ 7.5
Demand deposits at—Reserve Bank*+ 17.3−11.1
Trading Banks+ 75.8+ 51.1
    Totals+ 120.6+ 48.0

The next table shows the causes of the changes in the volume of money that occurred during the period.

Cumulative Movement 1939–46 (Seven Years).1946–47.1947–48.1948–49.1949–50.

*As shown by changes in the Reserve Bank's sterling exchange plus overseas investments and trading banks' assets overseas in respect of New Zealand business, less overseas liabilities.

†Minus sign indicates shift from demand to time liabilities.

‡Apart from the amount of £600,000 paid in cash by the Government to the Reserve Bank, the adjustments consequent on the exchange rate appreciation neither increased or decreased the amount of money in circulation in New Zealand in the form of coin, notes, and bank demand deposits, and are therefore not included in the table.

 £(m)£ (m)£ (m)£ (m)£(m)
Overseas transactions*+ 82.8+ 21.0−27.5− 0.8− 0.5
Bank Credit—     
Reserve Bank—     
Advances in New Zealand+ 23.2− 13.6+ 17.1+ 8.9+ 11.6
Investments in New Zealand+ 5.0− 7.7+ 3.9+ 7.0 + 12.0 
Trading banks—     
Advances and discounts− 4.5+ 15.0+ 20.1− 6.7− 1.5
Investments in New Zealand+ 19.8− 2.3− 6.7− 4.3− 2.8
Shift from time to demand liabilities of trading banks− 3.5− 2.2− 3.6+ 0.3− 0.2
Other items− 2.2+ 2.4+ 4.2+ 4.5+ 0.4
Change during period+ 120.6+ 12.6+ 7.5+ 8.9+ 19.0

OVERDRAFT AND DISCOUNT RATES.—The trading banks' minimum overdraft rates and rates of discount, which had for many years been at 6½ or 7 per cent., were reduced to 6 per cent. as from 1st September, 1932. This was followed by further reductions to 5 per cent. from 1st May, 1933, to 4½ per cent. from 30th November, 1934, and to 4 per cent. from 1st August, 1941.

The Reserve Bank's minimum discount or rediscount rate for New Zealand bills was originally 4 per cent., but was reduced to 3½ per cent. from 29th July, 1935, to 2½ per cent. from 2nd March, 1936, and to 2 per cent. from 29th June, 1936. The rate was restored to the original 4 per cent. on 19th November, 1938, but was reduced to 3 per cent. from 6th September, 1939, to 2 per cent. from 27th May, 1949, and to 1½ per cent. from 26th July, 1941.

DEPOSIT AND INTEREST RATES.—Trading Banks.—The following is a schedule (since June, 1912) of the rates paid by the Associated Banks in New Zealand for moneys lodged on fixed deposit.

Date operative from.Three Months and under Six Months.Six Mouths and under Twelve Months.Twelve Months and under Twenty-four Months.Twenty-four Months and under Thirty-six Months.
 Per Cent.Per Cent.Per Cent.Per Cent.
1st June, 1912 24
20th January, 192134
20th June, 19214
11th December, 19264
9th May, 192745
9th July, 19284
1st February, 19305
22nd April, 193045
1st August, 19314
1st June, 193234
2nd December, 19323
11th July, 193323
5th July, 19342
2nd November, 1934
18th September, 1940¾
17th July, 1941¾2

Post Office Savings-bank.—Following is a statement of the interest rates payable in respect of Post Office Savings-bank deposits since 1914.

Date operative from.Amount of Deposit.
£1-£300.£301-£500.£501-£1,000.£1,001-£2,000.£2,001-£5,000.

* Rate in existence on 1st January, 1914.

† See paragraph following.

 Per Cent.Per Cent.Per Cent.Per Cent.Per Cent.
1st January, 1914*544Nil.Nil.
1st January, 192144
1st April, 192844
1st August, 1931
1st April, 19333333
1st August, 1933333
1st August, 193433
1st March, 193533Nil.
1st August, 19413322Nil.
1st June, 194222Nil.

Prior to 1st January, 1914, the maximum deposit in the Post Office Savings-bank on which interest was payable was £600; but on that date the maximum was raised to £1,000. Between 1st January, 1921, and 1st April, 1928, interest was allowed on deposits up to a maximum of £5,000: but, as from the latter date, the maximum deposit on which any interest is payable has been £2,000. In respect of deposits lodged prior to 1st April, 1928, however, interest at 3¼ per cent. on the excess over £500 was still allowed up to a maximum deposit of £5,000. The rate on the amount between £500 and £5,000 was reduced to 3 per cent. from 1st April, 1933, on the amount exceeding £1,000 to 2¾ per cent. from 1st August, 1933, and on the excess over £500 to 2½ per cent. from 1st August, 1934, and to 2 per cent. from 1st August, 1941. Since 1st March, 1935, interest has not been payable in respect of the excess above £2,000 in any account.

Trustee Savings-banks.—Under the provisions of the Savings-banks Act, 1908, which applied to trustee savings-banks only, these banks were required to pay interest at the rate of 5 per cent. on deposits of £1 and upwards, but not on fractions of £1 or on amounts of under £1. The maximum amount of deposits on which interest was to be paid was fixed at £100 for each depositor; but by the Finance Act, 1921–22, the maximum was raised to £200. It remained at this figure until 1st July, 1945, when it was raised to £500. The banks were empowered to reduce the rate of interest, with the consent of the Governor-General, after three months' notice given by an advertisement published in the Gazette. These provisions were continued by the Trustee Savings Banks Act, 1948, which repealed the Savings-banks Act, 1908.

In the National Expenditure Adjustment Act, 1932, provision was made for the fixation by the Governor-General in Council of the maximum rates of interest payable by trustees of savings-banks. Ruling rates immediately prior to July, 1932, varied between 4 per cent. and 4½ per cent.; but, by Order in Council, the maximum interest payable was reduced to 3¾ per cent. as from 1st July, 1932, and to 3 per cent. as from 1st April, 1933. A further reduction to 2½ per cent. was made as from 1st June, 1942. The 1948 legislation, which replaced the above authority, gave power to the Governor-General to fix from time to time the rates of interest to be paid on deposits, and also provided that different rates may be fixed with respect to different classes of deposits.

Company, &c., Deposits.—Authority was taken in the National Expenditure Adjustment Act, 1932, to fix by Order in Council the maximum rates of interest payable on deposits with stock and station agents, trading companies, and building and investment societies. Changes made in the maximum rates of interest since 1932 are given on page 529 of the 1947–49 Year Book. The maximum rates from 1st July, 1946, for stock and station agencies and trading companies range from 1½ per cent. at call and under three months to 3 per cent. for three years and over, and for building and investment societies from 1 per cent. at call and under three months to 2¾ per cent. for three years and over. For the savings department of the latter class, the rate is 2½ per cent.

Other Deposit and Interest Rates.—It is of service at this stage to mention briefly the interest rates payable in respect of certain other classes of deposits. The highest rate of interest payable on moneys in the Common Fund of the Public Trust Office (see Section 47) was fixed at 3 per cent. from 1st August, 1949, previous reductions having been made from 5¼ per cent. in 1928, to 4¾ per cent. in 1931, to 4 per cent. in 1932, to 3½ per cent. in 1933, and 3¼ per cent. in 1945.

Local authorities may also accept deposits (in practice, only for short periods). The present maximum rates of interest (as from 17th July, 1941) on such deposits, as fixed by Order in Council are: Call and under three months, 1 per cent.; three and under six months, 1¼ per cent.: six months and over, 1½ per cent.

References to rates of interest on mortgages will be found in Section 33 (Mortgages), while interest on Government debt is referred to in Section 25C (State Indebtedness), and interest on local-authority debt in Section 27 (Local Government).

COINAGE AND CURRENCY.—New Zealand Coin.—Section 8 of the Finance Act, 1932–33 (No. 2), authorized the Minister of Finance to arrange with the Master of the Royal Mint (in England) for a special issue of silver and bronze coinage of distinctive design for use in New Zealand. Any coins minted in accordance with this arrangement would conform to the standard Mint requirements of weight, fineness, &c., and were given status as legal tender in New Zealand.

The Coinage Act, 1933, which came into operation on the 1st December, 1933, repealed section 8 of the Finance Act, 1932–33 (No. 2), and made necessary provisions in respect of silver and of bronze or cupro-nickel coins. The Act contains no provision for the issue of New Zealand gold coins. Section 5 (4) of the Act authorized Proclamations declaring that British coins (other than gold coins) should not be legal tender in New Zealand, and a Proclamation was issued declaring British silver coins not legal tender in New Zealand on and after the 1st February, 1935.

Arrangements were made under which the Royal Mint agreed to remint free of charge the Imperial and Australian silver coin circulating in New Zealand, replacing it with the New Zealand coin referred to above, and to allow the New Zealand Government the bullion value of the coin not used in making such replacement.

The profit accruing to the New Zealand Government from the recoinage on this basis arises from the fact that the Australian coinage and a proportion of the British coinage then in circulation in New Zealand contained a larger proportion of silver than the new coin under the standard set out in the Schedule to the Coinage Act, 1933, which is also the standard governing the present production of Imperial silver coin. In addition, the Commonwealth Government agreed to the repatriation at face value of a proportion of Australian coin circulating in New Zealand.

Up to 31st March, 1950, New Zealand coins have been received from the Mint of a total face value of £6,264,997. Statistics of the face values of the various denominations of coin received to 31st March, 1950, and the value of New Zealand silver coin in circulation at 31st March, 1950, are as follows:—

 Total received.In Circulation.

* Not available.

 ££
Crown48,29235,992
Half-crown1,970,100964,846
Florin1,989,500929,899
Shilling810,000495,013
Sixpence583,500409,375
Threepence661,975501,748
Penny153,550*
Halfpenny48,080*

Expenses of the Silver and Bronze Coin Account totalled £681,148 to the 31st March, 1950, at which date there was a credit balance of £3,302,397 in the account.

New Zealand silver coinage first came into circulation in 1933, and New Zealand bronze coins were first released for circulation in December, 1939.

Restrictions on Import and Export of Currency.—The Customs Import Prohibition Order now prohibits the importation of all coin (other than silver coin which is over one hundred years old) of whatever metal and wherever and whenever minted, and whether or not it is legal currency in New Zealand or elsewhere. Persons arriving in New Zealand are permitted to have with them on arrival silver coin not exceeding £2 in value. The importation of bank-notes of the Bank of England, and of bank-notes issued by banks in Scotland and Northern Ireland, is prohibited. Persons arriving either directly or indirectly from the United Kingdom are prohibited from bringing with them, in the same ship or aircraft in which they arrive, the following items: Gold bullion; money, including bank-notes and other currency (other than silver coin not exceeding £2 in value) and postal notes and money-orders of New Zealand or of any other country, and including also promissory notes and bills of exchange; securities for money, including bonds, debentures, debenture stock, and Treasury bills, and including scrip or certificates for and documents representing shares, debenture stock, and other stock, and also all other securities for money. The items enumerated are exclusive of promissory notes, cheques, drafts, and other bills of exchange, for sums expressed in sterling currency of the United Kingdom.

The Customs Export Prohibition Order prohibits the exportation of all coin (other than silver coin which is more than one hundred years old) of whatever metal and wherever and whenever minted and whether or not it is legal currency in New Zealand or elsewhere. Persons leaving New Zealand are permitted to take silver coin not exceeding £2; or, if the journey is by direct route (without transhipment) to Great Britain or Ireland, silver coin to the value of £5 may be taken. In addition to the above, the Finance Emergency Regulations 1940 prohibited the taking or sending of any money out of New Zealand except with the consent of the Minister or except in the case of certain transactions especially exempted.

In the cases of both the Export and the Import Prohibition Orders, power is vested in the Minister to authorize in writing the variation of the provisions mentioned. Prohibitions mentioned in both Orders have effect in addition to and not in substitution for any other prohibition in force relating or applicable to the importation or exportation of any of the items enumerated in the Orders or in any other enactment.

Legal Tender and Issue of Notes.—The Coinage Act, 1933, provides that a tender or payment of money, if made in New Zealand coins of current weight, shall be a legal tender to the following extent:—

  1. Gold, to any amount.

  2. Silver and cupro-nickel for amounts not exceeding £2.

  3. Bronze for amounts not exceeding 1s.

The position in respect of the bank-note issue in New Zealand was radically altered by the Reserve Bank of New Zealand Act, 1933. Section 15 enacted that on and after a date fixed by Proclamation—the Proclamation was signed on the 26th January, 1934, and fixed the date as the 1st August, 1934—the Reserve Bank had the sole right to issue bank-notes in New Zealand; and thereupon the authority of every other bank to issue or re-issue bank-notes was terminated, and such banks were required to redeem their outstanding notes in Reserve Bank notes or subsidiary coin to the extent to which the latter was legal tender. On the 1st August, 1936, every other bank carrying on business in New Zealand was required to pay over to the Reserve Bank an amount equal to the value of its then outstanding notes issued or payable in New Zealand, and its liability in respect of such notes to the holders was assumed by the Reserve Bank. Bank-notes not presented for payment within forty years, commencing 1st April after date of issue in the case of Reserve Bank notes, or after assumption of liability (as above) in other cases, are deemed not to be in circulation, and an amount equal to the value thereof must be paid into the Consolidated Fund as if unclaimed moneys. The Unclaimed Moneys Act, 1908, provides for the payment to the rightful owner of any moneys paid into the Consolidated Fund under the provisions of the Act.

Reserve Bank notes are constituted legal tender up to any amount. There is a provision in the existing legislation which requires the Bank, on presentation at its head office in Wellington of notes to any amount not loss than £1,000, to give in exchange sterling for immediate delivery in London. This requirement may be suspended at the discretion of the Minister of Finance, and actually has been suspended since December, 1938. On similar presentation of gold or of sterling for immediate delivery in London, in either case to an amount of £1,000 or more, the Bank must give its notes in exchange therefor. The rate of exchange for the above transactions is fixed by the Bank.

The principal Act required the Bank to maintain a minimum reserve of not less than 25 per cent. of the aggregate amount of its notes in circulation and other demand liabilities; but the Reserve Bank of New Zealand Amendment Act, 1939, empowered the Minister of Finance to vary or suspend this requirement. Both of these provisions were repealed by the Reserve Bank Amendment Act, 1950, and the following provision substituted: “It shall be the duty of the Bank to maintain reserves which, in the opinion of the Board of Directors, will provide a reasonable margin for contingencies, after taking into account prospective receipts and disbursements of overseas funds, and having regard to the economic position within New Zealand.” The definition of the term “reserve” has been amended and now includes:—

  1. Gold coin and bullion in the unrestricted ownership of the Bank.

  2. Sterling exchange, comprising (1) deposits at the Bank of England, (2) British Treasury bills of not more than three months unexpired currency, (3) bills of exchange bearing at least two good signatures and of not more than three months unexpired currency.

  3. Net gold exchange, as defined in section 17 (c) of the Act of 1933.

  4. Other exchange—i.e., balances standing to the credit of the Bank at the central bank of any country the currency of which is freely convertible into sterling.

For the purpose of ascertaining the net reserve the amount of the Bank's liabilities in currencies other than New Zealand is deducted from the total of the “reserve”.

The gold coin and bullion holdings of the Reserve Bank are shown in the Bank's books at cost value to the bank. The amending legislation of 1939 permits the Minister of Finance to make a revaluation up to the market value of the fine gold contained in the reserve, the premium resulting from such revaluation to be credited to a special reserve to be held on behalf of the Crown. This special reserve is to be used in such manner as the Minister of Finance may from time to time determine; but up to the present, no such revaluation has been made.

The Reserve Bank may not issue bank-notes of a less denomination than 10s., except with the authority of the Governor-General in Council. The present issue of notes consists of the following denominations: 10s., £1, £5, £10, and £50.

Notes are issued solely in response to the demands of the public. In assessing likely requirements, there are seasonal factors to be considered, as well as basic economic conditions, such as national income, the levels of salary and wages, changes in price-levels generally, and in the total volume of money. In addition, methods and frequency of payments affect the amount to be issued.

Currency other than Legal Tender.—Neither Australian nor other overseas paper-money circulates in New Zealand, presumably on account of the exchange fee charged by the banks on receiving it.

No consideration of the amount of credit currency in use at any moment can overlook the very large proportion of payments made by cheque, mainly upon the trading banks, but also upon trustee savings-banks and upon various stock-and-station agencies which act in this respect for their customers in the capacity of banker. Such cheques usually go direct from the payee to the collecting bank, but occasionally they pass from hand to hand.

Government postal notes (issued in thirty-nine denominations of from 1s. to £1) sometimes enjoy a certain length of life in the form of currency.

EXCHANGE-RATES.—Although the movement of gold, whether internally or externally, was unrestricted in years prior to the war of 1914–18, certain of the conditions usually considered essential in the full operation of the gold standard were never effective in New Zealand. More correctly, New Zealand was, and still is, upon a sterling-exchange standard. The explanation is that the New Zealand banking system is not self-contained, in that the banks normally hold a large amount of funds in London. In fact, these London balances are the real regulative factor and the key to the whole New Zealand banking system. The inter-relation between these balances and import control and exchange control is of interest in this respect.

While New Zealand currency was at parity with sterling, except for minor fluctuations above or below parity, no necessity existed for distinction between sterling and New Zealand currency. The latter is entitled to be considered as one of the sterling currencies; but, adopting the convenience of a growing usage, sterling is used herein to refer solely to the currency of Great Britain.

The unusual significance of the exchange-rate in the case of New Zealand depends chiefly upon the country's position in regard to overseas trade and to overseas borrowings. The course of development of New Zealand has not reached a stage where the country is fully self-contained, and the external trade per caput is greater than that of almost all, if not all, other countries. Most of this external trade is with the United Kingdom, while the function of London as an international clearing-house is also of importance in this connection. New Zealand's borrowings from the London financial market have also, until comparatively recently, been upon a high scale, requiring, as noted elsewhere (see State and also Local Authority Indebtedness), heavy annual payments in London.

The regulation of currency exchange is a function of the Reserve Bank, as noted previously. The Finance Act, 1934, provides that any appreciation or depreciation of the assets of the Reserve Bank (expressed in the currency of New Zealand) due to any alteration that may subsequently be made in the exchange rate, while the value of the local currency is not fixed by statute in terms of sterling, shall be credited to or be borne by the Consolidated Fund. In this respect, as already noted, the Consolidated Fund bore those losses incurred as a result of the 1948 adjustment of the exchange rate.

New Zealand and Sterling Exchange.—The relationship of New Zealand currency to sterling has assumed added significance since December, 1929. Prior to that date the New Zealand currency was at virtual parity with British currency, only slight deviations occurring from time to time, but then commenced to depreciate gradually, reaching, in January of 1931, a level of approximately £110 New Zealand = £100 London for telegraphic transfers. At that level it remained fairly stationary until January, 1933, when as a result of Government intervention it was abruptly depreciated to a further degree. The relationship existing from 20th January, 1933, until the establishment of the Reserve Bank of New Zealand on the 1st August, 1934, was £125 (selling) and £124 10s. (buying) New Zealand = £100 London for telegraphic transfers.

From the 1st August, 1934, Reserve Bank quotations for £100 sterling for immediate delivery in London were: Buying rate, £124; Belling rate, £125. It was intimated that the policy of the Bank would aim at retaining these rates unchanged for a long period unless there occurred marked changes in existing conditions. To assist in achieving this measure of stability, the Reserve Bank was prepared to enter into forward exchange contracts with the trading banks. While prepared to fulfil its statutory obligations, the Reserve Bank did not desire to compete for exchange business, provided adequate facilities were available elsewhere.

Following the statement of the Reserve Bank's policy, the trading banks adopted as from the 1st August, 1934, a scale of rates representing a reduction of 10s. per £100 on the rates ruling from the 20th January, 1933, to the 31st July, 1934. The rates were slightly changed on the 21st October, 1938, and further changes were made in the selling rate as from 1st December, and in the buying rate as from 6th November, 1940. During the year 1945–46 the Reserve Bank agreed to certain alterations in the trading banks' on-demand and usance rates. The effect of this alteration was to bring into alignment the on-demand and telegraphic transfer rates. This was considered appropriate because of the inauguration of fast air-mail facilities replacing, as from 31st July, 1945, the airgraph service previously used. The improvement in the mail- services and the consequent reduction in the transit-time between New Zealand and London enabled the trading banks to quote more favourable on-demand and usance buying rated to the public.

The position was very materially altered as from the 20th August, 1948, following on the announcement by the Government on the previous night of the appreciation of New Zealand currency to parity with sterling. The Reserve Bank quotations from 20th August, 1948, for £100 sterling for immediate delivery in London were: Buying rate, £100; selling rate, £101. Consequential adjustments to the scale of rates of trailing banks in New Zealand were also made. The quotations current for New Zealand on London at end of March, 1950, are given in the following table:—

Category.Buying (on Basis £(Stg.)100).Selling (on Basis of £(>Stg.) 100).
Telegraphic transfers (cable)£(N.Z.)100 7s. 6d.£(N.Z.)101.
Sterling notes£(N.Z.)98 1s. 9d.£(N.Z.)101
 Air Mail.Sea Mail.Air and Sea Mail
Bills, cheques, and drafts payable on demand£(N.Z.)100 0s. 9d.£(N.Z.)99 16s. 9d.£(N.Z.)101 0s. 0d.
Bills or drafts 3 days sight£(N.Z.)100 0s. 0d.£(N.Z.)99 16s. 0d.No quotation.
Bills or drafts 30 days sight£(N.Z.)99 17s. 3d.£(N.Z.)99 13s. 3d.£(N.Z.)100 19s. 3d.
Bills or drafts 60 days sight£(N.Z.)99 14s. 0d.£(N.Z.)99 10s. 0d.£(N.Z.)100 18s. 6d.
Bills or drafts 90 days sight£(N.Z.)99 10s. 9d.£(N.Z.)99 6s. 9d.£(N.Z.)100 17s. 6d.
Bills or drafts 120 days sight£(N.Z.)99 7s. 6d.£(N.Z.)99 3s. 6d.No quotation.

On the occasion of the devaluation of sterling in terms of gold and the United States of America dollar in September, 1949, it was decided that New Zealand should maintain the value of its currency at parity with sterling.

As most of the export credits in normal times are utilized for financing imports, it is advisable to note that the full exchange rate is not operative in respect of dutiable goods. This arises from the fact that, although Customs duties are assessed in sterling, payment of Customs duties is accepted in New Zealand currency without addition of exchange.

New Zealand and Exchange Rates with Other Currencies.—The change in the sterling-dollar parity was followed by a change in the dollar value of a large number of currencies. Some countries maintained the sterling value of their currencies, others maintained the dollar value, and others again altered the exchange value of their currencies in relation to both sterling and the United States of America dollar. In the latter cases there was a consequent alteration in the rate at which New Zealand currency was exchangeable for the currency of the country concerned.

The following table shows recent exchange-rates for telegraphic transfer quoted by the New Zealand trading banks for various currencies together with the rates ruling prior to devaluation.

New Zealand onPre-devaluation (i.e., Prior to September, 1949).As at the 31st March, 1950.
Buying.Selling.Buying.Selling.
United States of America (dollars per £(N.Z.))4.02953.96962.79912.7586
Canada (dollars per £(N.Z.))4.02953.96963.08023.0333
France (francs per £(N.Z.))1,105.271,078.61987.82963.28
Belgium (francs per £(N.Z.))177.94173.29141.05137.35
Switzerland (francs per £(N.Z.))17.3617.0112.2512.00
Pakistan (N.Z. pence per rupee)17.87518.37525.7526.39

The rates applicable for telegraphic transfer to Australia at March, 1950, were £(A)124 10s. 9d. buying and £(A)124 selling per £(N.Z.)100, and for notes the only difference was in the buying rate, this being £(A)126 14s. 3d. per £(N.Z.)100.

As from the 10th July, 1950, new rates applied in regard to Canada and the United States of America. For the latter, buying rates are 2.7964 United States dollars per £(N.Z.), and selling at 2.7627 dollars per £(N.Z.). The rate for Canadian dollars was 3.0771 dollars per £(N.Z.) buying and 3.0379 selling from 10th July to 1st October, 1950, but as from the 2nd October, when the Canadian Government decided to permit the exchange value of the Canadian dollar to be determined by market valuations, the rate has fluctuated, the rate at the 1st December, 1950, being 2.974 Canadian dollars per £(N.Z.) buying and 2.8899 selling.

FINANCE EMERGENCY REGULATIONS AFFECTING BANKING AND CURRENCY.—The Finance Emergency Regulations 1940 (No. 2) of the 18th June, 1940, took the place of earlier regulations gazetted on the 10th April, 1940, but they are also more comprehensive. Amendments to the regulations were issued in 1940, 1945, 1946, 1947, 1948, and 1950. The regulations closely resembled similar legislation passed in the United Kingdom shortly before the New Zealand measures came into force. The regulations prohibited the export of money and securities from New Zealand except with the consent of the Minister of Finance, and required that foreign currency belonging to any New Zealand resident be offered for sale to the Reserve Bank of New Zealand. Since August, 1948, by the Gold Acquisition Notice, issued under the regulations, gold coin and bullion belonging to a New Zealand resident are to be offered for sale to the Reserve Bank.

Under the regulations owners of foreign securities were prohibited from dealing with their securities in any way and were obliged to register them with the Reserve Bank within a specified period. A Reserve Bank statement of the 30th July, 1940, somewhat eased these restrictions by permitting New Zealand residents to deal in overseas securities on the New Zealand register without the prior consent of the Reserve Bank, subject to the companies concerned agreeing to fulfil certain requirements as to returns, &c. As regards overseas securities held by New Zealand residents but registered outside New Zealand, the selling broker was required to obtain the prior consent of the Reserve Bank. Permission to deal in both these classes of overseas securities was subject to the further condition that a form recording the transaction was to be completed by both the selling broker and the buying broker and supplied to the Reserve Bank. Sales of overseas securities to other than New Zealand residents required the special permission of the Reserve Bank, and in all stub cases the proceeds received overseas must be remitted to New Zealand. The change from one form of overseas investment to another in an Australian market was not permitted.

The regulations empowered the Minister to take over any overseas securities for the purpose of strengthening the financial position of New Zealand, at a price not less than the market value at the time of the transfer. The price payable for securities or currency acquired may be in cash, in New Zealand Government stock, or in a combination of both, according to the discretion of the Minister. For gold coin or bullion taken over, the vendor has the option of any of these methods of payment.

An amendment to the Finance Regulations 1940 (No. 2) in March, 1950, gave the Minister of Finance power to exempt, by Gazette notice, specified foreign currency owned by persons ordinarily resident in New Zealand. Similar power in respect of foreign securities was already contained in the regulations.

A Gazette notice dated the 9th March, 1950, relaxed the principal regulations by granting exemptions as set out below. It is no longer prohibited to take, transfer, or send sterling-area securities from New Zealand without prior approval; sterling-area currencies are exempted from the requirement that foreign currencies shall be offered for sale to the Reserve Bank; it is not necessary to declare fixed bank deposits or foreign securities domiciled in the sterling area to that Bank; holders of sterling-area currency can now sell, transfer, or change this more freely without first obtaining Reserve Bank approval; and the unexercised power of the Government to acquire compulsorily foreign currency and securities ceases to apply to sterling-area currencies or securities. The exemptions listed have no application to foreign securities or currencies held by the trading banks operating in New Zealand.

It should be noted that the proceeds from the sale of exports under licence must still be sold to a bank in New Zealand. It is also an offence to engage in transactions involving the conversion of New Zealand currency into the currency of any other country at other than the official rate of exchange.

Offers of sale of foreign currency and declarations of foreign securities which had been made to the Reserve Bank showed that at the 1st November, 1949, there was a total of privately held funds amounting to £(N.Z.)39,222,000, distributed as follows; United Kingdom, £(N.Z.)11,679,000, Australia, £(N.Z.)25,853,000; United States of America, £(N.Z.)446,000; Canada, £(N.Z.)476,000; and other countries, £(N.Z.)769,000. Listed securities at estimated market value accounted for £(N.Z.)32,821,000 and unlisted securities at face value for £(N.Z.)3,918,000 of the total amount. The figures quoted are exclusive of trading balances of £2,896,000 required for normal business purposes and £23,046,000 in securities held by banks, insurance and shipping companies, and other trading concerns, and regarded as essential for the purposes for which held, and sundry other small balances.

Further sections of the regulations, although some do not directly affect banking and currency, empowered the Minister to require contributions to war loans; prohibited, without his consent, the formation of companies, building societies, &c., or the increase of capital of existing companies; regulated the issue of capital other than by a local authority; and empowered the Minister, as he deems necessary in the public interest, to control advances for industrial purposes.

Amending regulations issued on 22nd May, 1946, provided that the consent of the Minister is not required for the formation of a company where the, nominal capital does not exceed £10,000, or for an increase of capital of an existing company where the amount of the increase, together with the amounts of all other increases made within one year before that increase, does not exceed £10,000.

Chapter 30. SECTION 30—INSURANCE

30 A—LIFE ASSURANCE

THE statutory provisions affecting life assurance in New Zealand are in the main contained in the Life Insurance Act, 1908, and its amendments of 1920, 1921–22, and 1925; the Inalienable Life Annuities Act, 1910; and the Government Life Insurance Act, 1908, and its amendment of 1912. Any association other than a friendly society which issues policies or grants annuities on human life in New Zealand comes within the scope of the enactments. Every life company must deposit with the Public Trustee money or securities of the statutory character to the value of from £5,000 to £50,000, varying within these limits according to the total amount assured by policies current in its New Zealand business. The aggregate value of such deposits at 31st March, 1950, was £747,390.

In the case of composite offices, provision is made for the receipts of life and annuity business to be treated as a separate fund, and the Act safeguards the interest of the policyholder by making these funds available only for liabilities arising from such business.

The law bearing on industrial assurance received the attention of the Legislature in the Life Insurance Amendment Act, 1920. In this class of assurance the premiums are payable at shorter intervals than three months, and provision is made for its control by regulation. Companies are required to deposit with the Minister of Finance forms of policy tables, rates, and other documents, and policies must contain only such conditions as have been approved by the Governor-General in Council. Restrictions are placed on the forfeiture of policies in default of payments or other requirements.

Annual returns of life assurance are required to be deposited with the Minister of Finance, and it is from these returns that the statistical matter contained in this subsection has been compiled.

Fifteen life-assurance offices were operating in New Zealand during 1948. Of the fifteen, four only are purely New Zealand institutions—namely, the Government Life Insurance Office, the Provident Life Assurance Co., the Dominion Life Assurance Office of New Zealand, Ltd., the F.A.M.E. Insurance Co., Ltd.

The statistics here given relate exclusively to business transacted in New Zealand.

LIFE ASSURANCE.—ORDINARY AND INDUSTRIAL.—The progress of life assurance in New Zealand is illustrated by the following diagram, which shows the amount of new business transacted at intervals over a period of forty-eight years.

Eleven years' figures for new business, discontinuances, and amount in force for the combined departments (ordinary and industrial) are given in the table following.

Year.Policies issued.Policies discontinued.Policies existing at End of Year.
 £££
193820,506,53010,213,016161,095,325
193919,302,5119,982,613170,415,223
194015,841,0708,752,438177,503,855
194117,753,9118,052,712187,206,560
194214,587,9518,035,532193,758,979
194317,574,0596,779,764204,192,428
194422,115,9997,284,723219,023,704
194527,870,4688,298,596238,595,576
194637,085,4959,828,464265,852,607
194741,368,21810,897,884296,322,941
194842,022,87213,405,210324,940,603

During the ten years from 1939 to 1948 the amount in force has increased by £163,845,278 or 102 per cent. The year 1948 contributed 17.5 per cent. of the total increase during the decade.

War conditions generally, including smaller numbers of the companies' field representatives and the transfer of large numbers of men of the predominantly insurable ages to the Armed Forces, were evidently the major factors determining the lower levels of new business during 1940–43. Subsequently, the substantial increases in private incomes, particularly in the later war years, and the return of men to civilian life created a situation favourable to a large expansion in the amount of new business. Although the amount underwritten in 1943 was below the level of pre-war years, it was substantially above the 1942 figure. Each succeeding year has produced a substantial increase, so much so that fresh records were created in 1945, 1946, 1947, and 1948. The 1948 increase was, however, the comparatively small one of £654,654, indicating that the immediate post-war boom in new insurance issues ended in 1947.

As the total discontinuances include surrenders and lapses, the general tendency is for discontinuances to follow the same trend as new business, although there is naturally a time lag of, normally, about two years. Therefore discontinuances declined each year from the peak of 1938 (this year was affected by an abnormally large number of maturities) until 1943. An upward movement commenced in 1944, and this has continued in subsequent years, although the increase has been relatively slight when the record figures of new business are taken into account. In the three years 1938–40 the value of policies discontinued on account of all causes represented 52.0 per cent. of the value of new policies issued, as compared with 28.3 per cent. in 1946–48.

Ordinary Life Assurance.—A table showing the progress of business over a period of eleven years is given below.

Year.Policies issued.Policies discontinued.Policies existing at End of Year.
Number.Sum assured.Annual Premiums.Number.Sum assured.Annual Premiums.Number.Sum assured.Annual Premiums.
  ££ ££ ££
193844,20916,943,706510,84122,7548,222,169292,821373,874140,319,5654,384,608
193940,40416,304,251479,24921,7097,884,027259,907392,569148,739,7894,603,950
194031,00313,043,641391,84919,5656,901,236239,399404,007154,832,1944,756,400
194133,22814,869,366464,63416,9196,279,161215,145420,332163,473,9055,005,632
194224,88612,143,512387,53616,2366,378,095215,214428,982169,239,3225,177,954
194328,62915,018,060518,93514,2305,469,650179,622443,381178,426,8865,517,267
194435,33519,252,364655,42414,8095,813,624205,979463,907191,865,6265,966,713
194544,21524,877,652823,51215,6756,671,405244,020492,447210,071,8736,546,205
194657,72433,383,5781,088,16816,9278,006,535287,942533,244235,448,9167,346,430
194760,81037,517,1151,237,24718,3938,978,114326,449575,661263,987,9178,257,228
194860,51638,472,0561,230,16821,03711,111,245395,311615,140291,348,7289,092,085

The amount of new business transacted fell away considerably following the outbreak of war, the absence overseas with the Armed Forces of large numbers of men of the predominantly insurable ages being a potent factor.

Between 1943 and 1947 a substantial increase was recorded in each succeeding year, reflecting, no doubt, the return to civilian life of servicemen, and the reviewing of insurance cover to meet changing money values The greatest increase was recorded in 1946, the amount underwritten in that year being £8,500,000 (34 per cent.) greater than in 1945. In 1947 the total was £4,100,000 (11 per cent.) in excess of 1946. The year 1948, however, shows a greatly diminished rise of £950,000 (3 per cent.) over the previous year.

A prominent feature of new insurances of recent years has been the increase in the average amount of the sum assured per policy. Average amounts per new policy and the increases over the preceding year were:—

Year.Average Amount.Increase
 ££
19383833
193940421
194042117
194144728
194248841
194352638
194454519
194556318
194657815
194761739
194863619

From 1938 to 1943 discontinuances became progressively loss, the heavy mortality in the war years being more than compensated by the smaller number of lapses and surrenders. The years 1944 to 1948, however, showed the increased discontinuances which normally follow substantial rises in new policy issues.

The net result of the transactions for the year 1948 was an increase since the end of the preceding year of £27,360,811 in the sum assured in force, as against corresponding rises of £28,539,001 and £25,377,043 for 1947 and 1946 respectively.

Particulars of policies discontinued during the last five years are contained in the next table.

Year.Death.Maturity.Surrender.Lapse.Other Causes.Totals.
Number of Policies
19444,1014,4553,3922,51834314,809
19453,7914,7684,0163,164−6415,675
19463,3275,0344,8754,092−40116,927
19472,9935,1005,3874,951−3818,393
1948' 3,1565,5476,2035,92121021,037
Sum assured
££££££ 
19441,788,8741,050,0761,375,8841,206,134392,6565,813,624
19451,640,4191,367,8231,801,1211,436,593425,4496,671,405
19461,471,9201,388,7962,478,9772,082,819584,0238,006,535
19471,434,0061,337,2202,916,4812,580,299710,1088,978,114
19481,635,0421,499,1853,745,0432,804,8871,427,08811,111,245

Reducing the sums assured in the previous table to a percentage basis, the results are as follows:—

Year.Death.Maturity.Surrender.Lapse.Other Causes.Totals.
 Per Cent.Per Cent.Per Cent.Per Cent.Per Cent.Per Cent.
194430.818.123.720.76.7100.0
194524.620.527.021.56.4100.0
194618.417.331.026.07.3100.0
194716.014.932.528.77.9100.0
194814.713.533.725.312.8100.0

The most prominent feature of the 1948 figures is the rise in discontinuances from “other causes.” A substantial part of the increase is probably due to adjustments to “group insurance” or “superannuation” policies.

The total amount written off during 1948 represents 4.2 per cent. of the amount in force at the end of the previous year, compared with 3.8 per cent. for 1947.

A statement of the aggregate revenue and expenditure of all the companies operating in New Zealand, so far as ordinary business is concerned, further illustrates the course of business during the last five years The ratios of management expenses to premium income and to total revenue are also given.

Year.Revenue and Expenditure.Expenses of Management.
Total Revenue.*Total Expenditure.*Excess of Revenue.Amount.Proportion to Premium Income.Proportion to Total Revenue.

* Excluding transfers from or to Head Offices and Branches.

 ££££Per Cent.Per Cent.
19448,493,8945,080,9203,412,974787,79112.809.27
19459,104,9195,536,4923,568,427911,90213.6110.02
19469,997,7995,667,2544,330,5451,132,72915.1311.33
194711,215,7035,886,9785,328,7251,299,62815.2611.59
194812,131,3526,381,3165,750,0361,356,63214.6711.18

Excluding commission, the ratio of management expenses to premium income was 6.58, 6.42, 6.89, 7.09 and 6.95 per cent. respectively for the years 1944 to 1948 inclusive.

The next table gives particulars of the principal items of revenue and expenditure during the five years. Transfers between head offices and branches are again excluded.

1944.1945.1946.1947.1948.
Revenue£££££
New and renewal premiums6,152,2216,699,1907,485,2878,517,0309,245,454
Consideration for annuities41,53146,22869,274103,83695,021
Interest, rents, &c.2,291,2442,359,1882,441,1982,588,6712,787,401
Other revenue8,8983132,0406,1663,476
Total revenue8,493,8949,104,9199,997,79911,215,70312,131,352
Expenditure     
Claims by death and maturity3,496,7723,751,5513,602,2203,571,2813,955,708
Annuities108,917105,777106,637112,926111,323
Surrenders320,254306,892359,790382,945440,382
Cash bonuses20,94121,44618,44124,35828,383
Management787,791911,9021,132,7291,299,6281,356,632
Taxes209,957362,236356,941436,035419,542
Other expenditure136,28876,68890,49659,80569,346
    Total expenditure5,080,9205,536,4925,667,2545,886,9786,381,316

Industrial Assurance.—The sums assured by new industrial policies commenced to decline in 1938 and reached the lowest point in 1942. The subsequent upward trend culminated in a peak increase of £700,000 (24 per cent.) for the year 1946, as compared with 1945. In 1947 the corresponding increase was only 4 per cent., while 1948 shows a decrease of 8 per cent. A significant trend is revealed by the number of policies issued during the years covered by the table below. Even in the peak year of 1946, the number of policies issued was 16,000 less than in 1938, and both 1947 and 1948 have recorded substantial decreases in numbers issued. Prior to 1948, the year 1925 was the last occasion when policies issued dropped below 40,000. There has been a long-term relative fall in new industrial issues as compared with ordinary policies. The numbers of new industrial policies for each thousand ordinary policies issued have been:—

1920–291,8851946885
1930–391,6301947720
1940–481,0631948585

The results for 1946–48, however, probably overemphasize the the relative decline, since there is undoubtedly a tendency during more prosperous periods to select the ordinary policy in preference to the industrial policy.

A summary of the progress of industrial assurance business is given in the following table.

Year.Policies issued.Policies discontinued.Policies existing at End of Year.
Number.Sum assured.Annual Premiums.Number.Sum assured.Annual Premiums.Number.Sum assured.Annual Premiums.
  ££ ££ ££
193865,3963,562,824210,25437,0641,990,847118,176426,93620,775,7601,222,937
193953,5312,998,260177,67237,1502,093,586126,907443,31721,675,4341,273,702
194049,6712,797,429163,73532,3381,851,202113,635460,65022,621,6611,323,802
194150,2562,884,545164,90631,1731,773,551108,227479,73323,732,6551,380,481
194242,4982,444,439141,04629,3861,657,437102,221492,84524,519,6571,419,306
194341,6852,555,999146,27123,9581,310,11481,467510,57225,765,5421,484,110
194443,8762,863,635162,35226,3791,471,09990,006528,06927,158,0781,556,455
194543,3532,992,816170,21428,0571,627,191101,659543,36528,523,7031,625,010
194649,3693,701,917201,80430,3951,821,929109,271562,33930,403,6911,717,542
194743,7893,851,103184,13830,7901,919,770112,080575,33832,335,0241,789,600
194835,4063,550,816155,55233,7702,293,965126,523576,97433,591,8751,818,629

As a result of the year's transactions, the amount in force increased during 1948 by £1,256,851, compared with the previous year's increase of £1,931,333.

The average sum assured under each policy of new business effected in 1948 amounted to £100, with an average annual premium of £4 7s. 8d. Corresponding averages for five years earlier (1943) were £61 and £3 10s. 2d., and for ten years earlier (1938) £54 and £3 4s. 4d.

A summary of the number of industrial policies and the sums assured written off according to the several causes is now given in the form of a five-year table.

Year.Death.Maturity.Surrender.Lapse.Other Causes.Total.
Number of Policies
19443,39112,8502,0138,0705526,379
19453,44213,8062,1488,55011128,057
19463,13514,9412,7459,39418030,395
19472,80215,4742,9629,36518730,790
19482,82016,6183,72810,43017433,770
Sum assured
 ££££££
1944154,501603,55691,348607,84513,8491,471,099
1945147,800663,228106,712695,44914,0021,627,191
1946131,278703,776134,263832,36520,2471,821,929
1947120,309730,217240,293808,17020,7811,919,770
1948121,269764,632379,4531,008,61319,9982,293,965

The amount written off in each year is proportionately greater in the industrial than in the ordinary branch. Of the insurance in force at the end of the previous year, 3.8 per cent. of the ordinary and 6.4 per cent. of the industrial became void in 1946. The corresponding figures for 1947 were ordinary, 3.8 per cent.; industrial, 6.3 per cent.; and for 1948, 4.2 per cent. and 7.1 per cent. respectively.

In the following table the sums assured for the various classes of discontinuances are expressed as percentages of the total discontinuances:—

Year.Death.Maturity.Surrender.Lapse.Other Causes.Totals.
 Per Cent.Per Cent.Per Cent.Per Cent.Per Cent.Per Cent.
194410.541.06.241.31.0100.0
19459.140.76.642.70.9100.0
19467.238.67.445.71.1100.0
19476.338.012.542.11.1100.0
19485.333.316.544.00.9100.0

A statement of the aggregate revenue and expenditure for the last five years is contained in the next table, which shows also the ratio of management expenses to premium income and to total revenue.

Year.Revenue and Expenditure.Expenses of Management.
Total Revenue.*Total Expenditure.*Excess of Revenue.Amount.Proportion to Premium Income.Proportion to Total Revenue.

* Excluding transfers from or to Head Offices and Branches.

 ££££Per Cent.Per Cent.
19441,931,4191,360,896570,523406,71726.7021.06
19452,012,3891,450,780561,609426,20426.6521.18
19462,079,9291,526,654553,275465,46727.9722.38
19472,192,9231,566,505626,418481,31327.5021.95
19482,251,0351,612,678638,357481,93226.7621.41

The difference between the ratio of management expenses to premium income in the industrial branch and the corresponding ratio in the ordinary branch is largely accounted for by the cost of collection of premiums in the industrial branch, principally in the shape of renewal commission. In the ordinary branch, commission (new and renewal) in 1948 was equivalent to 7.72 per cent. of the premium income, and in the industrial branch to 15.04 per cent. Excluding commissions, the ratio of management expenses to premium income was 11.72 per cent. in the industrial branch, as against 6.95 per cent. in the ordinary.

The principal items of revenue and expenditure in the industrial branch (again excluding transfers between head office and branches) for the five years 1944–48 is now given.

1944.1945.1946.1947.1948.
Revenue£££££
Premiums1,523,1501,599,2121,664,4061,750,5361,801,216
Interest, rents, &c.399,585411,841414,311425,693449,077
Other revenue8,6841,3361,21216,694742
Total revenue1,931,4192,012,3892,079,9292,192,9232,251,035
Expenditure     
Claims by death and maturity852,806924,818963,815988,2371,016,653
Surrenders31,02836,20342,78247,59564,705
Management406,717426,204465,467481,313481,932
Taxes38,36245,04437,75238,90340,116
Other expenditure31,98318,51116,83810,4579,272
Total expenditure1,360,8961,450,7801,526,6541,566,5051,612,678

LIFE ASSURANCE DEATH-RATES.—The following table shows for the period 1938—48 the death-rate per thousand policies exposed to risk in each year. In computing these rates all policies which were in force for any portion of the year have been taken into account. The higher rates for the 1941–46 years are mainly due to deaths from war causes.

Year.Death-rate per 1,000 Policies.
Ordinary Life Assurance.Industrial Life Assurance.Ordinary and Industrial combined.
19385.705.865.79
19395.155.515.35
19405.435.375.40
19416.896.026.42
19429.746.978.24
19438.766.727.66
19448.536.127.24
19457.436.026.69
19466.055.295.66
19475.044.624.83
19484.944.624.78

LIABILITIES AND ASSETS.—Of the five companies transacting industrial business in New Zealand, only one apportions its liabilities and assets over the ordinary and industrial business, for, although the legislation in force requires separate statements of revenue and expenditure, policies issued and discontinued, &c., no such requirement exists in regard to balance-sheets. The figures presented in the next two tables accordingly refer to both classes of assurance, and, as indicated earlier in this subsection, relate to New Zealand business only.

The aggregate capital and liabilities at the end of 1948, as compared with the two preceding years, were as follows:—1946.1947.1948.
 £££
Paid-up share capital240,829250,029198,390
Life assurance and annuity funds77,115,82183,036,93189,214,554
Depreciation, reserve, and other special funds1,127,6791,121,3081,028,981
Claims admitted but not paid780,990777,719731,436
Other liabilities694,732998,8421,004,692
    Totals79,960,05186,184,82992,178,053

The assets of the New Zealand Branches at the end of the three years 1946–48 were:—

Assets.Amount.Proportion to Totals.
1946.1947.1948.1946.1947.1948.
 £££Per Cent.Per Cent.Per Cent.
Mortgages on property12,139,19613,108,34115,475,44415.1815.2016.79
Loans on policies3,575,1543,481,0973,593,2444.474.043.90
New Zealand Government securities33,867,65437,898,80939,434,68342.3643.9742.78
Securities of other Governments2,826,5482,273,8902,561,1173.532.652.78
Municipal and local authority securities21,352,13022,714,83423,510,92226.7026.3625.51
Landed and house property2,146,8912,177,8302,224,3912.692.542.41
Other investments888,1261,201,2402,179,0081.111.392.36
Agents' balances3,1264,8857,8460.000.000.01
Outstanding premiums469,746537,919547,1580.590.620.59
Interest accrued, &c.695,795749,291787,5320.870.870.86
Cash907,901888,425721,7881.141.030.78
Other assets1,087,7841,148,2681,134,9201.361.331.23
      Totals79,960,05186,184,82992,178,053100.00100.00100.00

The following diagram illustrates the expansion that has taken place since 1925 in the assets of life-assurance companies operating in New Zealand. This, of course, is a natural consequence of the huge increase in the amount of business. As stated on page 614, receipts of life assurance and annuity business must be treated as a separate fund, and the interests of the policy-holders are safeguarded by the fact that these funds are available only for liabilities arising from such business.

The diagram also shows the trend in the class of security in which the funds have been invested. Considerable changes have taken place in recent years in the proportions represented by the different securities. In 1938 local authority securities represented 36.2 per cent.; loans on mortgage, 22.4 per cent.; Government securities, 18.7 per cent.; and loans or policies, 11.1 per cent. of the total assets. In 1948 the corresponding percentages were: local authority securities, 25.5 per cent.; loans on mortgage, 16.8 per cent.; Government securities, 45.6 per cent.; and loans on policies, 3.9 per cent.

30 B—ACCIDENT INSURANCE

IN terms of the Accident Insurance Companies Act, 1908, accident-insurance policies may be issued by any association, whether incorporated or not, provided such association is not established under any Act relating to friendly societies. The principal classes of accident insurance transacted in New Zealand are as follows:—

  1. Personal accident, covering accident, sickness, &c.;

  2. Employers' liability under statutory or common law;

  3. Motor-vehicle insurance, comprehensive and compulsory third-party risks cover.

Other important classes of accident-insurance policies are in respect of plate-glass insurance and fidelity-guarantee insurance.

The Workers' Compensation Amendment Act, 1947, provided for the insurance with the Government Accident Insurance Branch of the State Fire Insurance Office of all employers' liability insurances, as from 1st April, 1949. However, insurances with certain specified mutual insurance companies were exempted from the operation of the Act. Further reference to this transfer will be found in Section 30D. An amending Act of 1950, however, restored the right of insurance companies to undertake employers' liability insurance as from 1st April, 1951.

In these statistics, the data relate to the financial years of the companies which most closely approximate the calendar year. As some companies had balance dates after the 31st March, 1949, the 1948 figures shown in the statistics which follow have been affected to some extent by the operation of the Act referred to in the preceding paragraph.

Information relating to cash deposits required from companies transacting accident-insurance business is contained in the next subsection, which deals with the cognate subject of fire insurance.

REVENUE AND EXPENDITURE.—The number of insurance offices transacting accident business in New Zealand in 1948 was 60, the head offices of the companies concerned being domiciled as follows: Great Britain, 23; Australia, 12; and New Zealand, 25.

Of the New Zealand offices only 10, including the State Accident Insurance Office, may be stated to be competitive in the ordinary sense of the term, the remainder having been formed by trade associations, &c., on a more or less co-operative basis. In the main an office of this latter type conducts one class of accident-insurance business only (according to the nature of the association with which it is connected)—e.g., employers' liability insurance, motor-vehicle insurance.

Premium receipts have risen in each succeeding year since 1942. The greatest increase was shown in the 1947 total, which was £645,479, or 19.7 per cent. in excess of 1946. The 1948 increase was £407,968, or 10.4 per cent. above the 1947 figure. Approximately 70 per cent. of this amount is accounted for by motor-vehicle premiums and the remaining 30 per cent. is spread among the other classes of business. Claims in 1948 were £377,571 or 17.7 per cent. greater than in 1947, approximately 60 per cent. of the increase being motor-vehicle claims. Expenses other than claims totalled £1,475,167 in 1948, as against £1,328,857 in 1947. Taxation which claimed £220,906 of the 1948 expenditure has shown only minor fluctuations during the past three years. The excess of premium receipts over total expenditure was £339,706 in 1948, £455,619 in 1947, and £429,425 in 1946.

Year.Number of Offices.Revenue.Expenditure.
Premiums.Other Revenue.Total.*Claims.Commission.Salaries.Other ExpensesTotals.*

*Excluding unexpired risks reserves.

 ££££££££ 
1938582,507,09699,1552,606,2511,559,322305,934256,500214,5572,336,313
1939582,711,438108,1642,819,6021,518,035300,901270,193303,2682,392,397
1940582,550,12791,0702,641,1971,344,529277,819270,583411,8302,304,761
1941582,510,54294,6112,605,1531,221,722261,716266,791477,8622,228,091
1942582,280,671110,4442,391,1151,093,874242,175244,135484,8062,064,990
1943582,578,169101,8222,679,9911,307,259253,610254,187476,7092,291,765
1944592,614,588103,4292,718,0171,345,519275,526281,514529,7482,432,307
1945602,851,503109,8972,961,4001,545,468311,405315,110480,4802,652,463
1946603,270,989107,6343,378,6231,666,256349,778359,236466,2942,841,564
1947613,916,468120,8204,037,2882,131,992420,013402,918505,9263,460,849
1948604,324,436146,8864,471,3222,509,563471,459432,264571,4443,984,730

A review of the expenses incurred in transacting accident insurance is contained in the table following. The fluctuations over a period of five years are shown in the form of percentages of revenue to expenditure under various heads.

Year.Ratio per Cent. of—
Claims to Premiums.Commission to Premiums.Salaries to Premiums.Other Expenses to Premiums.Total Expenses (other than Claims) to Premiums.Total Expenditure to Premiums.Total Expenditure to Total Revenue.
194451.4610.5410.7720.2641.5793.0389.49
194554.2010.9211.0516.8538.8293.0289.57
194650.9410.6910.9814.2635.9386.8784.10
194754.4410.7210.2912.9233.9388.3785.72
194858.0310.9210.0013.2134.1192.1489.12

The ratio of claims to premiums receded each year from a peak of 67.23 per cent. in 1937 to 47.96 per cent. in 1942, the latter figure being the lowest recorded since 1921. With the exception of 1946, when there was an appreciable fall, the movement since 1942 has been upwards. The drop in 1946 was due to the fact that premiums increased to a much greater extent than claims, the only class to show an actual fall in claims being employers' liability. Working-expenses (excluding taxation) amounted to £928,222 in 1946, £1,084,041 in 1947, and £1,254,261 in 1948. The ratio of working-expenses to premium income was 28.38 per cent. in 1946, 27.68 per cent. in 1947, and 29.00 per cent. in 1948. As will be apparent from the increases in the figures of working-expenses, the decline in the expense ratio was the result of the increase in premium income.

ANALYSIS OF PREMIUMS AND CLAIMS.—In the next table, particulars of premiums and claims for the three main classes of accident insurance are given for the last five years. It will be noticed that there is an apparent discrepancy between the totals of premiums and claims as shown herein and the figures already quoted. This is accounted for by the fact that, in order to arrive at the net financial results of the year's operations, it is necessary to take into account reinsurance transactions and up to this stage premiums and claims have been taken at the net figure. Reinsurances effected outside New Zealand are not taken into account in the figures presented below.

Year.Employers' Liability.Personal Accident.Motor-vehicle.Other Forms.Totals.
 £££££
Premiums
19441,310,234197,170965,371156,3862,629,161
19451,451,896224,2491,012,419178,4252,866,989
19461,604,195265,9241,192,164265,7643,328,047
19471,695,239307,1351,650,924328,2583,981,556
19481,704,394351,7731,940,641395,9714,392,779
Claims
1944771,49362,553470,18030,0151,334,241
1945788,76178,363534,42338,6871,440,234
1946765,35490,637742,22058,0981,656,309
1947866,08597,5901,060,15265,2162,089,043
1948946,334125,4911,267,95396,9372,436,715

The transfer of employers' liability insurance to the Government Accident Insurance Office, referred to at the beginning of this subsection, has affected the figures for this type of insurance. It is estimated that the premiums and claims for 1948 would have been respectively £140,000 and £75,000 greater than the amount shown if this year had been a normal one.

Compared with 1947, the 1948 totals are greater, gross premiums by £411,223, or 10.33 per cent., and gross claims by £347,672, or 16.64 per cent. Premiums increased on account of employers' liability insurance by 0.54 per cent., personal accident insurance by 14.53 per cent., and motor-vehicle insurance by 17.55 per cent. Employers' liability claims rose by 9.27 per cent., personal accident claims by 28.59 per cent., and motor-vehicle claims by 19.60 per cent.

Reducing the figures for each of the last three years to a percentage basis, the following results are arrived at.

Class of Insurance.Claims to Premiums.Premiums to Total Premiums.Claims to Total Claims.
1946.1947.1948.1946.1947.1948.1946.1947.1948.
 Per Cent.Per Cent.Per Cent.Per Cent.Per Cent.Per Cent.Per Cent.Per Cent.Per Cent.
Employers' liability47.7251.0955.5248.2042.5838.8046.2141.4638.84
Personal accident34.0831.7835.677.997.718.015.474.675.15
Motor-vehicle62.2664.2265.3435.8241.4744.1844.8150.7552.03
Other forms21.8619.8724.487.998.249.013.513.123.98
  All classes49.7752.4755.47100.00100.00100.00100.00100.00100.00

MOTOR-VEHICLES INSURANCE (THIRD-PARTY RISKS).—The Transport Act, 1949, which repealed the former legislative authority—i.e., the Motor-vehicles Insurance (Third-party Risks) Act, 1928—requires, as previously, owners of motor-vehicles to insure against their liability to pay damages on account of the death of or bodily injury to another person. The payment of the insurance premiums is made annually to Deputy Registrars of Motor-vehicles at the same time as the annual licence fee is paid under the Transport Amendment Act, 1950. Owners of motor-vehicles are required to nominate each year the insurance company with which the contract of insurance is to be made, and the contract is deemed to be complete on the payment of the premium.

Premium rates were reduced during the war as a result of the decrease in claims brought about by the restricted use of motor-vehicles. The relaxation of controls was followed by a rise in premium rates for most classes of motor-vehicles. The 1950–51 schedule includes the following: Trailers, 2s. 6d.; tractors, traction-engines, 5s.; motorcycles, £1 6s.; private motor-cars, £1 8s.; private motor-cars used wholly or in part for the purpose of trade or business, £2 1s.; motor-vehicles (other than trailers and motorcycles) used by lire-brigades, 10s.; hearses, ambulances, &c., £1; trade motors, £2 10s.; manufacturers' and dealers' motor-vehicles, £1 10s.; omnibuses, from £18 to £20 (according to seating-capacity); service-cars from £5 to £6 (according to seating capacity); rental cars, £4 10s.; contract vehicles used to carry employees to or from work, or children to or from school, £1 8s.; private and public motor-cabs, £10 10s. and £16 5s. respectively; other contract or public motor-vehicles, £3 1s. to £4 13s. (according to seating capacity).

A sum of 1s. 6d. for every contract of insurance is deducted for administration expenses, and the balance paid to the insurance company concerned.

The liability of any insurance company under any contract under the Act is limited to £2,000 (increased to £5,000 from the 1st July, 1951) in respect of any passenger in the motor-vehicle concerned, and to £20,000 (£50,000 as from 1st July, 2951) for all claims made by or in respect of passengers. Otherwise there is no limit as to amount.

The liability of the company does not extend to indemnify the owner against any claim made in respect of death of or of injury suffered by any relative of the owner, by any person in the service of the owner at the time of the accident, or by a passenger. The indemnity does, however, cover the case of a passenger for hire in a vehicle plying for hire or carrying passengers for hire.

The following particulars give the experience of the last five years, with a summary covering the ten years to 30th June, 1949. It should be noted that the figures for claims do not represent the amount paid during each year, but refer to accidents happening during each particular period. The claims figures include amounts on account of the estimated liability in respect of claims still outstanding at 30th June, 1949, and are therefore provisional only. Claims are frequently the subject of lengthy litigation, and until such time as they are finally settled the estimated liability is taken into account. The insurance companies usually overestimate this liability, and the figures when finalized, at least for the two latest years, may be expected to be considerably less than the amounts now given.

For example, claims paid and the estimated outstanding claims for the year ended 30th June, 1948, amounted to £512,321 at that date. On the 30th June, 1949, the claims paid plus the estimated claims outstanding for the year ended 30th June, 1948, totalled £452,701. Experience shows that this figure will be further reduced by the settling of more outstanding 1947–48 claims during the year ended 30th June, 1950.

Registration Year Ended 30th June—Total for Ten Years to 30th June 1949.
1945.1946.1947.1948.1949.
 ££££££
Premiums received304,853318,728364,874422,613479,1923,911,195
Claims paid out and estimated liability in respect of claims outstanding at 30th June, 1949247,510261,396373,922452,701609,0763,056,802
Ratio per cent. of claims paid and outstanding to premiums818210210712778

30 C—FIRE INSURANCE

IN the legislation dealing with insurance four separate classes of fire-insurance offices are distinguished—namely: (1) Local insurance companies established within the limits of New Zealand; (2) foreign insurance companies established beyond New Zealand; (3) United Kingdom offices similarly established; and (4) mutual fire-insurance associations. To these may be added the State Fire Insurance Office, established under a separate Act of Parliament.

Part XIV of the Companies Act, 1933, provides for the incorporation with limited liability of local insurance companies formed for the insurance of property other than that of shareholders. Such a company requires a paid-up capital of £50,000 intact, and if the amount of paid-up capital falls below this sum the company may not carry on insurance business except with unlimited liability. Insurance companies established or incorporated overseas require to have a like paid-up capital intact. Part II of the Insurance Companies Act, 1940, provides that, in the case of an insurance company of doubtful solvency, inspectors may be appointed to investigate and report on the affairs of the company. Mutual associations are referred to specially at a later stage in this subsection.

DEPOSITS.—Until the passing of the Insurance Companies Act, 1940, no deposit was required from an insurance company incorporated in New Zealand in respect of fire and accident insurance business, unless the company acted merely as an agent for overseas underwriters, or had, since 1933, commenced motor-vehicles third-party risks insurance business. Part I of this Act, as amended by the Insurance Companies' Deposits Amendment Act, 1950, provides that any New Zealand company which, after the passing of the Act, commences in New Zealand any of the specified classes of business, must deposit with the Public Trustee in money the following amounts: In respect of fire insurance, £22,500; employers' liability insurance, £22,500 (by deposit of approved securities and not in money): and all other classes (except motor-vehicles third-party risks insurance), £5,000. A New Zealand company which, at the commencement of the Act, was carrying on any of the classes of business referred to above was required to deposit cash or approved securities to the value of £1,000, together with a further £1,000 for each complete £2,500 of premium income derived from each class of business during its last financial year. The amount of deposit may be adjusted according to increases or decreases in business. These provisions were continued by the 1950 amendment, referred to earlier, in the case of companies that were carrying on employers' liability insurance on the 11th October, 1940, and which are recommencing that class of business before 1st April, 1952. The maximum deposit is that which would be paid by a newly established company.

The maximum deposits of New Zealand companies are the same as those required from British companies commencing business in New Zealand. Agents operating in New Zealand on behalf of British underwriters are required to make deposits similar in amount to those specified for British companies with the exception of employers' liability insurance, where agents of British underwriters are required to deposit £15,000. A foreign company, or an agent of foreign underwriters, before commencing business in New Zealand, must deposit in money the sum of £50,000, which covers all classes of business other than life or marine. If such companies were carrying on business prior to the 28th September, 1922, the deposit required is £35,000.

The Finance Act, 1933 (No. 2), required any company thereafter undertaking business in terms of the Motor-vehicles Insurance (Third-party Risks) Act, 1928, to deposit the sum of £10,000. This requirement is, in effect, extended by the Insurance Companies Act, 1940, under which every company undertaking this class of business must, unless it has made the deposit required by the Finance Act, deposit £1,000, together with £1,000 for each complete £2,500 of premium income from such business. The maximum deposit is £10,000.

Life and marine businesses are not affected by the provisions mentioned in the preceding paragraphs.

The capital amount of deposits held by the Public Trustee as at 31st March, 1950, under the Insurance Companies' Deposits Act on behalf of 60 companies was £1,179,660 as compared with £1,701,660 at 31st March, 1948. The decrease in amount is due to the repayment of the deposits on account of employers' liability insurance being made a virtual monopoly of the Government Accident Insurance Office (see p. 636).

Statistics of fire insurance are collected annually by the Census and Statistics Department. For 1948, statistics were collected from 45 offices carrying on business in New Zealand. The head offices of these were distributed as follows: Great Britain, 24; New Zealand, 14; Australia, 6; United States of America, 1.

LIABILITIES AND ASSETS.—The following table indicates generally the extent to which fire-insurance offices have funds available to meet losses and liabilities. Funds of life departments are added for completeness, but by the Life Insurance Act, 1908 (which follows the provisions of the Imperial statute on the subject), life funds must be accounted for separately, and form a security for life-policy holders which is not available for other classes of insurance transacted. The amount of funds (other than life) in New Zealand and elsewhere is, it will be seen, approximately £600,000,000.

1948.1947 (Totals).1946 (Totals).
Overseas Companies.Local Companies.Totals.
 £££££
Paid-up capital37,554,0283,873,04641,427,07442,022,45741,927,009
Reserves380,414,56713,706,556394,121,123350,434,829316,135,164
Other liabilities157,708,6204,508,683162,217,303157,146,948136,910,884
    Totals575,677,21522,088,285597,765,500549,604,234494,973,057
Life funds985,026,45527,140985,053,595937,705,958888,526,165
    Total liabilities (and assets)1,560,703,67022,115,4251,552,819,0951,487,310,1921,383,499,222

The following table gives the amount of assets in New Zealand as at the end of each of the last three years classified under various heads. The figures given include all investments in New Zealand securities and do not relate merely to the assets held by the New Zealand Branches of the companies concerned. The assets of other departments—accident, marine, &c.—are also included.

Assets in New Zealand.1946.1947.1948.
 £££
House and landed property1,248,8271,278,8001,261,170
New Zealand Government securities7,692,3767,889,3408,246,656
New Zealand local-authority securities1,040,232994,085937,958
Mortgages, &c.151,736155,654158,208
Outstanding premiums645,827811,387809,333
Cash and other assets in New Zealand4,073,7954,831,7215,356,602
    Total New Zealand assets14,852,79315,960,98716,769,927

SUMMARY OF BUSINESS.—New and renewal business increased, in comparison with the previous year, by £145,747,891 (16.2 per cent.) in 1947, and by £170,559,689 (16.3 per cent.) in 1948.

The substantial increases in the amounts of new and renewal business in recent years are the results of generally rising costs added to the post-war activity in building construction and the restoration of commercial trading stocks to more normal levels. The average premium rate fell from 6s. 1d. in 1946 to 5s. 11d. in 1947, but the 1948 average reverted to 6s. 1d. for each £100 of insurance cover. This average is influenced not only by movements in premium rates, but also by the varying proportions of insurance risks which are rated at higher or lower premiums than the average. It should be explained that the figures in the table which follows relate to the business conducted with the insuring public. Reinsurance transactions are not taken into account.

1946.1947.1948.

* Excluding reinsurances accepted from other offices.

Amounts underwritten   
Gross amount of insurance cover in force in New Zealand on 31st December*£792,810,330£926,803,502£1,078,301,412
Number of policies representing the foregoing*897,882951,0551,016,126
Gross amount of new and renewal business underwritten during year*£901,712,554£1,047,460,445£1,218,020,134
Number of policies representing the foregoing*979,5041,036,9231,112,482
Premiums   
Total gross premiums charged on business (new and renewal) underwritten during year*£2,752,813£3,115,582£3,705,014
Percentage of gross premiums to total amount of business underwritten6s. 1d.5s. 11d.6s. 1d.
Total premiums (as shown above), less premiums refunded to insured other than to other offices£2,519,396£2,851,200£3,368,735
Losses   
Total number of separate fire losses with which offices were concerned8,3289,27011,031
Gross losses£881,504£1,705,307£1,011,429
Percentage of gross loss to amount underwritten (raw and renewal) during year (as shown above)0.100.170.08
Percentage of gross loss to total premiums, less refunds to insured (as shown above)34.9559.8130.02
Average loss£106£184£92

The next table shows the position of premium income and fire losses during the eleven years 1938–1948. The figures shown correspond to those given in the previous table. Premium income increased steadily until 1941, when, as a result of reductions granted in premium rates, a decrease was recorded. Although the average premium charge decreased further in each of the three years 1945–47, premium income recorded increases. In 1948, however, the rise in the average premium rate combined with the increased business transacted produced an unusually large upward movement in the amount of premium income. Between 1944 and 1947 fire losses rose steeply, the amount paid in 1947 being swollen by the inclusion of two exceptionally severe fires, the Rongotai woolstore fire of 1946 and the Christchurch department store of 1947. The lire loss total for 1948, although not free from fires resulting in heavy loss, did not include any fires of the magnitude of the two previously mentioned.

Year.Premium Income.Fire Losses.Percentage of Loss to Premium Income.
 ££Per Cent.
19381,749,331613,18535.1
19391,849,866625,14133.8
19401,941,441627,66632.3
19412,034,207481,57823.7
19422,126,722856,51540.3
19432,296,901717,09131.2
19442,206,253547,28224.8
19452,300,348560,32924.4
19462,519,396881,50435.0
19472,851,2001,705,30759.8
19483,368,7351,011,42930.0

REVENUE AND EXPENDITURE.—A statement of the total revenue and expenditure, both gross and net, of all offices is now given in respect of New Zealand business. The gross figures include reinsurance business accepted, while the net figures comprise insurances with the public, plus reinsurances accepted, and less amounts reinsured with other offices. The gross reserve for unexpired risks, it should be noted, is calculated on the assumption that it bears the same proportion to gross premium income as does the actual net reserve to the net premium income.

1946.1947.1948.
Gross.Net.Gross.Net.Gross.Net.

* The gross figures are inclusive of reinsurance premiums from other offices.

Revenue££££££
Reserve to meet unexpired risks as at beginning of year1,120,645628,5801,243,888686,6811,422,336782,874
Amount of fire premiums receivable during year*3,000,9011,642,7013,468,3751,898,9604,085,8932,180,985
Interest and dividends on stock, mortgages, &c.90,20390,20385,40785,40796,43696,436
Rents34,17034,17038,10338,10333,73933,739
Other revenue61,31561,31520,95520,95511,20111,201
Totals4,307,2342,456,9694,856,7282,730,1065,649,6053,105,235
Expenditure      
Amount of fire claims incurred during year, Including adjustment and other expenses of settlement, but less salvage881,504546,2071,966,002646,6611,158,130502,855
Fire Board levies140,632104,217151,827111,835187,405137,101
New Zealand Government taxes372,310297,793295,142252,653355,872311,172
Local-authority rates3,6603,0613,3962,7554,1613,563
Licence fees5,5425,2605,4355,1655,3846,175
Rents26,14523,16225,42522,62629,14726,635
Allowances and commissions on premiums to agents, sub-agents, and others312,280109,483356,173140,067390,329146,462
Salaries and wages, including commissions on profits or bonuses344,705309,218373,074333,190425,336384,161
Other expenses of management155,451145,145166,396158,635211,361195,060
Reserve to meet unexpired risks as at the end of the year1,243,888686,6811,422,336782,8751,689,886902,725
    Totals3,486,1172,230 2274,765,2062,456,4624,457,0012,614,909

The principal items of net revenue and expenditure for 1948 of the two classes, of offices operating in New Zealand are contained in the next table.

Net Revenue.Net Expenditure.
Premiums.Total.*Claims.Salaries and Commissions.Total.*

* Excluding reserves to meet unexpired risks.

 £££££
Overseas companies1,319,6791,349,579318,756277,939956,432
Local companies861,306972,782184,099252,684755,752
    Totals2,180,9852,322,361502,855530,6231,712,184

The net premium income and the total net income in 1948 have, in comparison with the corresponding figures for 1947, increased by £282,025 and £278,936 respectively. The excess of net revenue over net expenditure for 1948 amounted to £610,177, as compared with the surpluses of £369,838 and £284,843 for 1947 and 1946 respectively. It should be noted that these figures are exclusive of reserves to meet unexpired risks.

The following table shows the percentage ratio of working-expenses to premium income for the years 1944–48.

It is contended in some quarters that Fire Board levies are not a working-expense, but should be added to the total of fire losses. While this view is not subscribed to in the compilation of the statistics, there is a definite relationship between the items, and this table shows the ratio both inclusive and exclusive of Fire Board levies.

Items.1944.1945.1946.1947.1948.
 Per Cent.Per Cent.Per Cent.Per Cent.Per Cent.
Net working-expenses (excluding taxes) to net premium income40.3340.3942.5940.7741.18
Net working-expenses (excluding taxes and Fire Board levies) to net premium income33.7034.0436.2434.8834.90
Gross working-expenses (excluding taxes) to gross premium income (including reinsurances from other offices)31.8232.1232.7231.1230.67
Gross working-expenses (excluding taxes and Fire Board levies) to gross premium income (including reinsurances from other offices)26.7827.3828.0326.7426.08

Although the amounts of working expenses have continued to increase throughout the period covered by the table, the rises in premium income in 1947 and 1948 were sufficient to cause the expense ratios to move generally in a downward direction.

FIRES AND LOSSES.—The table following gives figures of fires and losses during each of the eleven years, 1937–47. It should be noted that these figures relate to calendar years, and thus differ somewhat from those shown elsewhere, which refer to varying twelve-monthly periods covered by the accounts of the different offices.

The figures quoted herein relate to insured losses only, and in order to arrive at the national property loss by fire some allowance must be made for the uninsured losses. On what is termed a conservative basis, the Inspector of Fire Brigades in his annual report uses the insured-loss figure plus 12½ per cent. for this purpose, and on this assumption New Zealand's property loss through fire in 1947 would have amounted to £1,800,000.

Year.Separate Fires.Conflagrations.*Buildings, &c., affectedGross Cover.Gross Loss.

* Included in previous column. For statistical purposes a conflagration is defined as a fire where three or more buildings are affected.

† On buildings, &c., affected.

    ££
19375,967166,0748,261,471463,017
19385,956216,0877,004,699596,267
19396,373256,5616,486,979587,032
19406,033206,1388,116,928642,228
19416,315106,3847,880,911714,630
19425,406155,5087,644,555483,707
19435,71095,7818,936,676426,374
19446,049106,0998,817,550477,591
19456,51966,55914,838,243639,372
19466,939117,00612,730,169764,392
19477,903107,96117,103,4361,599,822

The next table shows, for each of the four principal urban areas and the remainder of New Zealand, the fires and losses for 1947.

Separate Fires.Conflagrations.*Buildings, &c., affected.Gross Cover.Gross Loss.

*Included in previous column.

† On buildings, &c., affected.

North Island   ££
Auckland urban area1,059 1,0654,953,069105,702
Wellington urban area1,38511,3914,475,125731,690
Secondary urban areas823 8261,134,41852,974
Remainder of North Island1,42551,4391,459,885204,440
    Totals for North Island4,69264,72112,022,4971,094,806
South Island     
Christchurch urban area896 9052,079,161288,152
Dunedin urban area79628031,003,60035,630
Secondary urban areas6181625788,14298,321
Remainder of South Island80318091,009,49379,015
    Totals for South Island3,11343,1424,880,396501,118
Floating, transit, and travelling98 98200,5433,898
    New Zealand totals7,903107,96117,103,4361,599,822

The amounts of fire insurance claims paid per head of population (excluding Maoris) were 9s. 3d. in 1946 and 18s. 10d. in 1947.

Causes of Fires.—Particulars regarding causes of fires are contained in the following table which covers the years 1945 to 1947.

Cause of Fire.1945.1946.1947.
Number of Fires.Amount of Loss.Number of Fires.Amount of Loss.Number of Fires.Amount of Loss.

* Included in various muses from which spread.

  £ £ £
Electricity1,20063,4531,35262,0131,447101,425
Gas15515,1991278,4891555,491
Naked lights831,849891,7602164,508
Defective chimneys and kindred causes24135,60225828,08229023,687
Smoking, and careless use of matches88934,85093355,2501,04927,715
Sparks from fireplaces2,48239,7772,60746,5222,93048,142
Heating, boiling-down1435,9481415,7242074,713
Highly inflammable spirits and materials16426,74821122,703242102,623
Incendiarism and arson4431,2263158,86119621,188
Outside causes18729,77623762,03819710,630
Other causes421,827506,459301,992
    Totals, specified causes5,630286,2556,036357,9016,782952,114
Fires spread from other buildings*274045616,118629,683
Floating, travelling, and transit risks642,746711,292983,898
Unknown causes825350,371832405,1991,023643,810
    Totals6,519639,3726,939764,3927,9031,599,822

It should be remembered that in some instances, more especially where a total or semi-total loss is sustained, the actual cause is a matter of conjecture only. These cases, however, are not numerous as the vast majority of such losses are included in the total of unspecified causes. In 1947 the average loss per fire for specified causes was £140, while the average for the fire where the cause was not specified amounted to £629.

The 1947 figure for losses caused by naked lights (candles, kerosene lamps, &c.) has shown a significant increase in the number of fires. This can no doubt be attributed to the extended use of other methods of lighting during periods of electric-power restrictions.

Provision exists for coronial inquiries into fires of suspicious origin, but, as will be seen from page 178, the annual number of such inquests has been small. In 1932, however, a system was instituted whereby extended inquiries are made by the Police Department into all fires where the possibility of incendiarism is not eliminated or where the cause is obscure. The results of such inquiries are considered by a committee consisting of the Commissioner of Police, the General Manager of the State Fire Office, and the Inspector of Fire Brigades, and should the circumstances warrant it a coroner's inquiry is then recommended.

Extent of Loss.—The following table gives particulars of fire losses during the years 1945 to 1947, classified according to the amount of loss. The vast majority of fires cause only minor damage. In 1947 losses of under £100 accounted for 92.3 per cent. of the total number of fires. Corresponding figures for 1945 and 1946 were 91.5 and 91.8 per cent. respectively. The amount of loss in the same category showed an increase of £15,005 (26.6 per cent.) for 1947 when compared with 1945. This is no doubt the result of higher replacement values rather than more severe fires. The number of fires in each of the four component items of the “under £100” loss group recorded increases in 1947 as compared with the preceding year, thus continuing the definite upward movement which has been evident in these categories for several years. In categories above this level, however, the number of fires has fluctuated from year to year. At the other end of the scale, fires of £5,000 and over have shown a marked increase in number during the last three years. The amount of loss has differed considerably, and generally the size of these fires has been the principal factor determining the level of the total amount of loss for the year.

Loss Category.1945.1946.1947.
Number of Fires.Amount of Loss.Number of Fires.Amount of Loss.Number of Fires.Amount of Loss.
£    £ £ £ £
Under 104,46815,8084,69916,4725,33219,035
10 and under 2594914,1621,02515,3531,23218,348
25 and under 5034611,73741113,97446115,971
50 and under 10020414,71923416,29126618,077
100 and under 20014219,53518125,84617123,864
200 and under 3009221,6818319,90510124,047
300 and under 4005418,2606220,8586923,059
400 and under 5003816,6753816,7993816,604
500 and under 7508350,1377646,2736840,934
750 and under 1,0004639,4943126,2353226,937
1,000 and under 2,0004968,3105066,1276789,843
2,000 and under 3,0001436,5461536,6482356,295
3,000 and under 4,0001240,880828,3981137,296
4,000 and under 5,000626,722522,244731,082
5,000 and over16244,70621392,969251,158,430
  Totals6,519639,3726,939764,3927,9031,599,822

Seasonal Incidence of Fires.—The following table gives particulars of fires and losses, &c., for the years 1945 to 1947 according to the month in which the fire occurred. It will be observed that the greatest number of fires occur in the winter months, the season in which open fireplaces and heating-appliances are used to the greatest extent. The majority of these fires, however, usually result in a very small amount of loss being mainly on account of damage caused to furniture, floor coverings, clothing, &c. Prior to 1945 it could be said that on the average the more serious fires occurred in the drier period of the year (particularly in the first four months), but exceptionally large fires in each of the following years have rendered this statement no longer strictly correct.

Month in which Fire Occurred.1945.1946.1947.
Number of Fires.Amount of Loss.Number of Fires.Amount of Loss.Number of Fires.Amount of Loss.
  £ £ £
January35634,47247341,08347923,666
February32023,10948567,06446681,431
March41250,41440658,19546188,518
April49641,49240527,94257326,364
May56335,92959938,00264329,818
June78465,13377230,92486938,849
July84865,94979528,52193361,737
August66063,214783166,546889104,242
September58492,917609102,524698711,118
October56330,45455039,66366845,077
November47046,62857447,855683277,660
December46389,661488116,073541111,352
    Totals6,519639,3726,939764,3927,9031,599,822

The table hereunder shows the daily incidence of fires for the years 1945–47. For classification purposes, a day is regarded as commencing at midnight. On Sundays commercial and household activities are generally more or less confined to essential tasks, and it is not surprising to find that this day shows the lowest fire rate. The more recent tendency has been for the number of Sunday fires to be only slightly less than the numbers for the next lowest days of the week. In the past Monday was traditionally the favourite day for performing the domestic “wash,” and this duty still appears to contribute substantially to Monday's consistent position in the matter of the greatest daily number of fires. The remaining days of the week appear to change position in order of magnitude at random from year to year.

Day of Week on which Fire Occurred.1945.1946.1947.
Number of Fires.Amount of Loss.Number of Fires.Amount of Loss.Number of Fires.Amount of Loss.
  £ £ £
Sunday86375,41093576,0251,06398,724
Monday1,05454,9491,155163,8321,23564,997
Tuesday97376,551965106,4341,163277,256
Wednesday953122,975967140,2481,119745,120
Thursday928127,467946113,7971,076109,596
Friday870122,55494771,5551,124170,829
Saturday87158,83898392,2001,068128,973
Not stated762841301554,327
    Totals6,519639,3726,939764,3927,9031,599,822

Class Groups.—Losses have been classified in broad groups according to the nature of the risk, the figures for the years 1945–47 being presented in the next table. The most numerous group, dwellings, in 1947 represented 83.4 per cent. of the total fires, but only 15.3 per cent. of the total loss. It should be noted that the “contents,” where insured, are included in the various class groups. Consequently, the total for the dwellings group is swollen by the numerous small claims on account of damage to personal effects, &c., the actual building not being affected by the fire in many instances. The miscellaneous risks group also includes those cases where a fire has affected two or more buildings which individually are classifiable into more than one of the other groups shown in the table.

Class Groups.1945.1946.1947.
Number of Fires.Amount of Loss.Number of Fires.Amount of Loss.Number of Fires.Amount of Loss.
  £ £ £
Dwellings, &c.5,337198,4125,741335,4636,590244,251
Hotels, &c.25815,61928524,13628821,944
Bulk stores, &c.1728,567182,2081630,128
Warehouses1917,72314481143,610
Shops27946,64024325,82727546,924
Factories and industrial risks268137,056284151,461288196,529
Farm risks and station property (other than dwellings)818,0538614,255979,284
Theatres and places of public amusement3321,9323011,968343,728
Miscellaneous risks (including unclassified)227165,370238198,5933011,043,424
    Totals6,519639,3726.939764,3927,9031,599,822

MUTUAL FIRE-INSURANCE ASSOCIATIONS.—Mutual associations are governed by the Mutual Fire Insurance Act, 1908, which allows one hundred or more owners of isolated or farm property to subscribe to a declaration and form themselves into a mutual association to insure against loss by fire to an amount in the aggregate of not less than £40,000. Amendments to this Act permit these associations to conduct accident business in addition to fire insurance. Such associations effect insurance on the premium-note principle, and accept premium notes to be assessed for losses in the proportion of the total amount of such notes. The amount of a member's premium notes limits his liability.

The principal figures for these associations for the last five years appear hereunder.

Year Ended 31st March,Net Premium Income.Total Net Income.Net Claims.Reserves and Funds.Assets.*
Fire.Accident.Fire.Accident.

*Including premium notes.

 £££££££
194525,49412,68142,2685,2039,83787,894395,657
194626,42213,88744,1012,7718,07594,288429,307
194728,84615,08847,9805,7895,52995,109479,159
194831,43315,48950,8275,9706,664100,772553,881
194938,05338,87081,2887,70610,466125,003615,198

The mutual fire-insurance associations were included in the list of mutual companies which were exempted from the operation of the Workers' Compensation Amendment Act, 1947, which provided for the placing of all employers' liability insurance with the State Accident Insurance Office. This is the principal reason for the large increase shown in the accident section of these associations for 1948–49.

FIRE BRIGADES.—The following table gives particulars of fire brigades (including branches) in New Zealand as at 31st December for each of the last six years.

Year.Stations.Officers.Men.Total Personnel.
19441855352,2002,735
19451955612,3902,951
19461905822,4152,997
19472015922,5883,180
19482126122,6703,282
19492176592,8613,520

30 D—STATE INSURANCE ACTIVITIES

STATE LIFE ASSURANCE.—The Life Insurance Department of the New Zealand Government was founded in 1869 at a time when New Zealanders had comparatively poor facilities in regard to life assurance. Payment of all policies with the State Office is guaranteed by the Government. Industrial assurance is not transacted.

The total income of the Department for 1949 was £2,222,861—viz., premium income, £1,582,514, interest, rents, &c., £610,522; annuity purchase-money, £29,825.

During the year 1949 payments (including bonus additions) to the value of £509,271 were made on account of matured policies, and £263,984 was paid for death claims under assurance policies (including bonus additions). Commission totalled £139,027 and other expenses of management £119,664, making the total management expenses £258,691.

Income and expenditure figures of the Government (Life) Insurance Department are now given for each of the five years 1945–49.

Year.Premium Income.Total Income.Management Expenses.Total Expenditure.Ratio of Management Expenses to Total Income.Ratio of Management Expenses to Premium Income.
 ££££Per Cent.Per Cent.
1945996,0491,561,670166,4151,172,98510.6616.71
19461,126,4561,705,862206,8681,103,74812.1318.36
19471,311,9901,929,781225,2071,204.73511.6717.17
19481,403,3122,019,991246,7621,193,55712.2215.60
19491,582,2142,222,861258,6911,263,79011.6416.35

Figures showing the progress of the Department are contained in the next table. Annuities are excluded.

New business for the year 1949 amounted to 13,508 policies assuring the sum of £8,578,568, the annual premiums thereon being £212,039. Compared with the year 1948 the sum assured recorded an increase of £500,701 (6.2 per cent.) and the number of policies issued was greater by 354.

Year.New Business.Policies discontinued.Policies in Force at End of Year.
Number of Policies.Sum assured.Annual Premiums.Number.Sum assured.Annual Premiums.Number.Sum assured.Annual Premiums.
  ££ ££ ££
19458,7864,923,809108,8923,6591,404,66039,546106,46240,837,857960,989
194611,1866,511,227144,3773,9891,661,97741,340113,65945,687,1071,064,026
194711,5107,052,219171,1704,0021,740,28444,261121,16750,999,0421,190,935
194813,1548,077,867185,4663,9701,858,28645,149130,35157,218,6231,331,252
194913,5088,578,568212,0394,5922,277,30655,737139,26763,519,8851,487,534

The average sums insured by new policies issued during 1947, 1948, and 1949 were respectively £613, £614, and £635.

The Department's balance-sheet as at 31st December, 1949, showed that the total assets amounted to £17,310,243, and were invested as shown in the following statement, which also gives the distribution of the assets at the end of the two preceding years for purposes of comparison.

Class of Investment.Amount.Proportion to Totals.
1947.1948.1949.1947.1948.1949.

* Mainly due and overdue premiums and interest, and interest accrued.

 £££Per Cent.Per Cent.Per Cent.
Mortgages on freehold property4,042,6064,322,5784,643,94725.8726.4926.83
Loans on policies748,514761,193765,7384.794.674.42
Government securities7,210,0967,645,8157,917,98546.1446,8645.75
Local authority securities2,723,7602,704,0263,099,22217.4316.5717.90
Landed and house property493,020490,610483,6603.163.012.79
Miscellaneous assets*313,624302,025331,2312.011.851.91
Cash in hand, on current account, and on deposit93,37590,43968,4600.600.550.40
      Totals15,624,99516,316,68617,310,243100.00100.00100.00

STATE ACCIDENT INSURANCE.—In the year 1901 the Government (Life) Insurance Department opened an Accident Branch. On 1st January, 1925, the accident business was transferred to the control of the State Fire Insurance Office. General accident business was undertaken, but the branch was opened more especially to conduct insurance under the Workers' Compensation Act. In recent years other forms of accident insurance have contributed on an increasing scale to the premium income of the office. The main classes transacted are employers' liability, personal accident, public risk, motor comprehensive, third-party risks, plate glass, and fidelity guarantee.

As from 1st April, 1949, the State Accident Insurance Office has been divided into two distinct parts, one administering the Employers' Liability Insurance Account and the other undertaking, on a competitive basis, the other types of accident insurance.

General Business.—A summary of revenue and expenditure during the last five years is contained in the following table.

Year.Revenue.*Expenditure*Ratio of Claims to Premiums.Total Assets.
Premiums.Total.Claims.Working, expense.Total.

* Excluding reserves for unearned premiums.

 £££££Per Cent.£
1945333,690364,017238,45961,346334,27471.041,078,779
1946341,304367,940212,91470,917336,09062.381,027,712
1947420,028447,854292,30481,905407,10069.591,099,225
1948466,046496,206318,32998,062464,29968.301,129,007
1949337,716367,895308,81680,798417,87891.441,162,928

The 1949 premium income is £128,330 less than that of the previous year. This decrease is more than accounted for by the transfer of employers' liability insurance to the Employers' Liability Insurance Account.

After payment of taxes, £22,900, and distributions under bonus and profit-sharing schemes, £5,364, the surplus of £3,109 for the year was added to the Reserve Fund. Corresponding figures for 1948 were taxes, £14,570; bonus and profit-sharing schemes, £33,338; and addition to Reserve Fund, £8,898.

The ratio of working-expenses to premium income in 1949 was 23.92 per cent. compared with 21.04 per cent. in 1948.

The total assets at 31st December, 1949, amounted to £1,162,928, including £719,537 invested in Government securities. Pa-serves and Funds totalled £759,723.

Employers' Liability Insurance Account.—The Workers' Compensation Amendment Act, 1943, made it obligatory for an employer to insure against his liability to pay compensation under the principal Act.

It has been mentioned earlier that, as from 1st April, 1949, all employers' liability insurances were required to be placed with the Government Accident Insurance Office. This provision was contained in the Workers' Compensation Amendment Act, 1947, which at the same time exempted, subject to certain conditions, the employers' liability insurance business of certain specified mutual insurance companies from the operation of the Act.

The Act established an Employers' Liability Insurance Account, which is credited with all premium and other receipts, and from which is paid all claims and other expenses.

Every employer was required, within one month after 31st March of each year, to furnish the amount of wages paid during the year ending on 31st March, and an estimate of the wages expected to be paid during the current year. The amount of premium is assessed on the amount of wages expected to be paid and adjustment is made when the actual amount of wages has been ascertained at the end of the period.

The rates of premium payable for the various classes of risk were prescribed by the Employers' Liability Insurance Regulations 1949, as amended by Amendment No. 1, also in 1949. The Act gave the General Manager power to grant a special rebate or make an extra charge when an employer's accident experience is more or less favourable than the average experience.

The rates of compensation payable, &c., in the event of an accident are given in Section 39F of this volume which reviews generally the subject of workers' compensation.

The revenue account of the Employers' Liability Insurance Account for the nine months ending 31st December, 1949, is as follows:—

Revenue£
Premiums1,498,435
Interest8,663
  Total£1,507,098
Expenditure£
Claims691,479
Salaries111,205
Contribution to Government Superannuation Fund3,194
Management expenses31,583
Unearned premiums reserve at 31st December, 1949499,478
    Total outgo1,336,939
Income and social security taxes85,570
Alterations to buildings23,245
Office furniture and mechanical equipment12,643
Fund at 31st December, 194948,701
    Total£1,507,098

The balance-sheet at 31st December, 1949, showed total assets of £970,810, of which £750,000 was invested in Government securities.

As the expenditure was for a period of nine months only, while the premiums were for a twelve months period, 25 per cent. of the premiums received (£499,478) were transferred to an “Unearned Premiums Reserve.”

The ratio of claims to earned premiums (i.e., premiums received less reserve for unearned premiums) was 69.22 per cent. Working-expenses (excluding taxes) and net surplus were respectively 14.61 per cent. and 4.88 per cent. of earned premiums.

The General Manager in his report states that “During the period covered by this report approximately 90,000 employers were insured under the Fund. The claims ratio of 69.22 per cent. is not unduly high in view of the increase in compensation benefits. At the same time, a nine months period is insufficient time in which to obtain a reliable guide as to what the experience on the present premium rates and benefit basis is likely to be. The working-expenses are a little higher than was hoped would be the case, but as the period covered was the initial period certain expenses will not recur and there is reason to expect that those will be capable of reduction in the future.”

It should be mentioned that the figures given above do not present the complete picture for the period. Data for the mutual insurance concerns exempted from the operation of the Act (the data is not yet available), and premiums and claims earned and paid during the intervals between the commencement of the various financial years of the other companies and the 1st April, 1949, have not been included.

The Workers' Compensation Amendment Act, 1950, restored the right of insurance companies to participate in this class of insurance as from the 1st April, 1951.

STATE FIRE INSURANCE.—The New Zealand State Fire Office was the first competitive State fire-insurance office in the world, and opened for business on 4th January, 1905, with a borrowed capital (long since repaid) of £2,000. The income of the office in its first year was £13,135.

Marine insurance has been undertaken since 1947.

The premium income figures in the following table include amounts which are returned to policy-holders by way of bonus rebates. At the end of 1936 the bonus rebates then in existence were converted into permanent premium rate reductions, a new series of bonus rebates being instituted at the same time. On 1st March, 1944, premium rates on wooden buildings were further reduced and, in addition, bonus rebates were once more converted into permanent premium rate reductions, a further series of 10 per cent. on wooden risks and 15 per cent. on brick risks being granted at the same time. This series was increased on 1st November, 1947, to 20 per cent. on renewals on both wooden and brick risks.

Apart from claims, and the bonus rebates which amounted to £67,094, the principal items of expenditure for 1949 were as follows: working-expenses, £95,299; Fire Board contributions, £23,128; income and social security taxes, £81,656.

Year.Net Premium Income.Total Net Income.*Net Losses.Accumulated Funds.Total Assets.

* Excluding reserve for unearned premiums.

† Marine insurance business is included.

 £££££
1945203,494267,18736,9001,300,7851,617,766
1946228,429353,31858,4831,375,3981,646,601
1947262,658346,16247,1941,429,7311,822,733
1948300,195373,26247,6841,481,6041,726,886
1949329,075397,26657,3271,544,3671,825,862

The ratio of claims to premiums in 1949 was 17.4 per cent., as compared with 15.9 per cent. in 1948; the working-expenses (including Fire Board levies) ratio was 36.0 per cent., against 38.5 per cent., while the ratio of taxes to total income fell from 20.8 per cent. in 1948 to 20.6 per cent. in 1949.

EARTHQUAKE AND WAR DAMAGE INSURANCE.—The War Damage Act, 1941, and its amendment of 1942 made provision for the insurance of property against damage suffered as a result of the Second World War. The Act was brought into operation by Proclamation as from 19th December, 1941, but the application of its compulsory provisions was deferred until 1st March, 1942. By virtue of the Earthquake Damage Regulations 1944, any property insured against war damage under the War Damage Act was, as from 1st March, 1944, deemed to be insured to the same amount against earthquake damage also.

The Earthquake and War Damage Act, 1944, which came into force on 1st January, 1945, follows on the same general lines as the War Damage Act, which was repealed. It also revoked the Earthquake Damage Emergency Regulations. A brief outline of the provisions of the new Act is as follows:—

The Act established within the Public Account a separate account called the Earthquake and War Damage Fund. The Fund is administered by the Earthquake and War Damage Commission, consisting of the Minister of Finance as Chairman, the Secretary to the Treasury, the State Fire Insurance General Manager, and four other members.

The Act provides for both compulsory and voluntary insurance against earthquake and war damage. Under the compulsory provisions all property insured to any amount under any contract of fire insurance with an insurance company is deemed to be insured to the same amount against earthquake damage and war damage. Under the voluntary provisions of the Act, any person having an insurable interest in any property may make application to the Commission for earthquake or war damage insurance, and a contract may be made for the insurance of any property that, is not insured under the compulsory section of the Act, or for the insurance to an additional amount of any property that is so insured. Premiums at the prescribed rates (originally 5s. per £100 of insurance cover, reduced to 1s. per £100 of cover as from 1st March, 1944), are collected by the insurance companies and paid into the Fund. Since 1st March, 1944, a commission of 2½ per cent. has been allowed on all premiums collected.

Advances may be made from the Consolidated Fund if at any time the amount in the Earthquake and War Damage Fund is not sufficient to meet the claims thereon.

“Earthquake damage” is defined as damage occurring as the direct result of earthquake or of fire occasioned by or in consequence of earthquake. It also includes damage occurring as the direct result of measures taken under proper authority to avoid the spreading of, or otherwise to mitigate the consequence of, any such damage. In addition to damage occurring as a direct result of action by the enemy, “war damage” included damage occurring as the direct result of measures taken in combating the enemy or precautionary or preparatory measures taken under proper authority with a view to preventing or hindering any enemy or anticipated enemy action. It also includes accidental damage occurring as the direct result of any explosion or fire which involves any explosives or munitions, &c., required for war purposes.

The following statement gives particulars of the Earthquake and War Damage Fund as from the date of its inception to 31st March, 1949. As stated earlier, the Earthquake and War Damage Fund replaced the War Damage Fund as from 1st January, 1945.

19th December, 1941, to 31st March, 1945.1945–46.1946–47.1947–48.1948–49.
Income—     
 £££££
  Premium4,232,166365,861410,065494,938540,704
  Interest173,608104,72594,860129,957129,591
    Totals4,405,774470,586504,925624,895670,295
Outgo—     
  Claims1,0935071,7797,91712,876
  Salaries10,8262,0352,1622,4932,643
  Discount to insurance offices8,8348,7339,96511,84313,573
  Other working-expenses3,8081,2962,1661,4101,665
  Exchange adjustment    339,525
    Totals24,56112,57116,07223,663370,282
Surplus4,381,213458,015488,853601,232300,013
Amount of Fund4,381,2134,839,2285,328,0815,929,3136,229,326

The item “exchange adjustment” of £339,525 in 1948–49 is the depreciation in the New Zealand value of the Commission's overseas funds as the result of the alteration in the exchange-rate to parity with sterling which came into operation during 1948.

MORTGAGEES' INDEMNITY INSURANCE.—The Mortgagees' Indemnity (Workers' Charges) Act, 1927, provides that when mortgages are presented for stamping, an additional stamp duty of 1s., known as a mortgagee's indemnity fee, is to be paid. The indemnity fees are paid into the Consolidated Fund, from which losses incurred by mortgagees through the enforcement of charges under the Workers' Compensation Act are met. A section of the Act definitely absolves the mortgagor from any obligation to insure or keep insured the mortgagee against loss of this nature in respect of any mortgage under the Act.

Chapter 31. SECTION 31—FRIENDLY SOCIETIES

THE legislation dealing with friendly societies is contained in the Friendly Societies Act, 1909, and its amendments. Provision is made for the registration of all societies and branches with the Registrar of Friendly Societies, and also for the general superintendence by the Government of the administration of the funds of the societies.

A scheme for the extension of State benefits to members of friendly societies, on special terms, was introduced by the Finance Act, 1916, and is now embodied in the National Provident Fund Act, 1950—see Section 26, Social Security, Pensions, Superannuation, &c.

LODGES AND MEMBERS.—The table following gives the number of registrations (i.e., of friendly societies proper, or lodges, together with benevolent societies, working-men's clubs, &c., registered under the Act) and of lodge members as at 31st December of the years shown.

Name of Order.Registrations.Lodge Members.
1947.1948.1949.1947.1948.1949.

* Membership figures relate to “actuarial” societies only.

Manchester Unity Independent Order of Oddfellows25925525428,76928,47928,200
Independent Order of Oddfellows1991951919,0368,9088,825
National Independent Order of Oddfellows11111910598
Ancient Order of Foresters15014714713,61813,23012,897
United Ancient Order of Druids14414314317,26116,89816,573
Independent Order of Rechabites6762603,8393,6923,569
Order of Sons of Temperance10108444434436
Sons and Daughters of Temperance11110810499
Hibernian-Australasian Catholic Benefit Society7980803,7363,7513,801
Protestant Alliance Friendly Society of Australasia121212634621608
Grand United Order of Oddfellows101010296279275
Isolated friendly societies706970646*633*640*
Working-men's clubs151523   
International Order of Good Templars111111   
Specially authorized societies192020   
    Totals1,0471,0311,03178,50677,13476,021

Annual returns of receipts, expenditure, &c., of lodges are required by law. For the year 1949 the Registrar of Friendly Societies received returns from 865 lodges, with an aggregate membership of 76,021 at the end of the year, as compared with 874 lodges and 77,134 members for 1948. During the year 2,322 members were admitted by initiation, &c., and 478 by clearance; 1,147 died, 488 left by clearance, and 2,278 by arrears, &c.

The aggregate membership of lodges increased year by year, reaching a peak in 1930, when the total was 107,167. The economic depression probably accounted for the decrease in each of the following three years, the number at the end of 1933 being 100,237. A series of increases then commenced, the 1930 level being passed in 1936, and by 31st December, 1938, a total of 113,709 had been reached. Each of the succeeding eleven years, however, has witnessed a fall in membership, the number at the end of 1949 being 76,021 or 33 per cent. less than in 1938. The various benefits under the Social Security scheme, particularly medical and hospital benefits (see Section 26), have no doubt had a considerable effect on the membership of friendly societies. Circumstances arising from the late war may also have been a contributing factor.

The statistics given subsequently relate to the lodges (865 in 1949) for which returns were received and tabulated.

MORTALITY AND SICKNESS.—In the following statement of the mortality experience for the last five years no account has been taken of age incidence.

Year.Deaths of Members.Per 1,000 Members at Risk.Deaths of Members' Wives.Per 1,000 Members at Risk.
19451,30515.413514.14
19461,20714.663834.65
19471,15814.573714.67
19481,19215.203204.08
19491,14714.873564.61

The number of members sick during 1949 was 14,744, representing 19.8 per 100 members at risk. The sickness experienced during the year aggregated 321,329 weeks, equal to 21 weeks 5 days per sick member, and 4 weeks 2 days for each member at risk.

FUNDS OF FRIENDLY SOCIETIES.—The total funds of the societies and branches as at the 31st December, 1949, amounted to £6,706,713, made up as follows:—

Funds£
Sick and Funeral Funds5,252,029
Surplus Appropriation Funds, &c.882,319
Management Funds, goods, &c.336,021
Distress, Benevolent Funds, &c.236,344
    Total£6,706,713
Assets£
Investments at interest6,167,774
Value of land and buildings295,203
Cash not bearing interest195,778
Value of goods19,533
Other assets24,567
Owing by Management Funds3,858
    Total£6,706,713

The net income from investment credited to Sick and Funeral Funds for 1949 amounted to £224,994, the average rate being £4 6s. 11d. per cent., as against £4 6s. 7d. per cent. in 1948.

There has been over many years a continuous increase in the amount of accumulated funds standing to the credit of friendly societies, the increase in the last ten years amounting to £1,299,112, or 24 per cent. The average capital per member has also appreciably increased, the gain in the last ten years amounting to £38 12s. 9d. (78 per cent.). The substantial fall in membership over the last ten years has resulted in outstanding increases being shown for the average capital per member.

Year.Total Funds.Average Capital per Member.
 ££s.d.
19395,407,60149118
19405,534,36852199
19415,670,75758121
19425,790,5216355
19435,897,9596704
19446,018,83170148
19456,135,41373180
19466,278,40978011
19476,419,52381155
19486,568,0398530
19496,706,7138845

The contributions and entrance fees paid to Sick and Funeral Funds in 1949 amounted to £160,077. Divided by the mean number of members, the average for 1949 was £2 1s. 10d., as against £2 1s. 8d. for 1948.

The interest and rent received by the lodges and central bodies amounted to £224,994 in 1949, equal to £2 18s. 9d. per member, as against £2 17s. 6d. for 1948.

The amount of sickness benefit paid was £168,883 in 1949, equal to £11 9s. 1d. per member sick, and £2 4s. 1d. per member, as against £11 8s. 6d. and £2 5s. 3d. respectively for 1948. Viewing the amount paid in relation to the weeks of sickness, the average benefit per week is found to be 10s. 6d. in 1949, as against 10s. 10d. for 1948.

The funeral benefit paid amounted to £63,521 in 1949, equal to 16s. 7d. per member, as compared with 16s. 9d. for 1948.

The total worth of the Sick and Funeral Funds at the beginning of 1949 was £5,324,018, and at the end of the year £5,252,029.

Chapter 32. SECTION 32—BUILDING SOCIETIES

THE law relating to building societies incorporated in New Zealand is contained in the Building Societies Act, 1908, which is a consolidation of earlier legislation, most of which had been operative since 1880. The Assistant Registrar of Companies in each district acts as Registrar of Building Societies. Rules, as well as subsequent alterations thereof, must be certified before registration as conforming to legal requirements—by a revising barrister appointed by the Governor-General for the purpose. No stamp duties are payable on documents made under the Act, or generally in respect of building society transactions.

Building societies are afforded all the powers and rights of an ordinary mortgagee, a description of which is contained in the next section (“Mortgages”). No reconveyance is needed to discharge a mortgage made under the Act, a receipt endorsed being a sufficient discharge for this purpose.

Authority was taken in the National Expenditure Adjustment Act, 1932, to fix by Order in Council the maximum rate of interest payable on deposits with building societies. Maximum rates payable on these and other deposits fixed by subsequent Orders in Council are given on pages 605–607.

Returns of each society's operations are furnished annually to the Census and Statistics Department.

A distinction is made between permanent and terminating societies. A permanent society is statutorily defined as one which has not by its rules any fixed date or specified result at which it shall terminate, and a terminating society as one which by its rules is to terminate at a fixed date, or when a result specified in its rules is attained. In practice a terminating society, or a group thereof, closes when every member so desiring has obtained a loan. There is a considerable difference between the two types of societies, the terminating society being a purely co-operative institution belonging to and managed by the members, proprietary interests being discouraged by placing a limit to the number of shares (usually ton) that any member may hold in any one group. There is, however, nothing to prevent a member from holding the maximum number of shares in more than one group. In a typical terminating society contributions are at the rate of 1s. per week per share, each share entitling a member in due course to £200 of loan, with a maximum of £1,200. As £1,200 is not sufficient to meet the needs of the average prospective house owner on present-day costs there is a tendency for the limit to be raised. In some groups of the terminating societies the loan maximum is now £2,000. It is these contributions, together with premiums on loans mentioned later, which make up the funds from which loans are made. Loans are made to members alternately (roughly) by ballot and by auction, the latter going for the highest premium offered. Security is required for the loans, which are repaid, free of interest, in 15½ years, a weekly instalment of 2s. 6d. per £100 of loan being necessary to achieve this result. The weekly payment of 1s. per share is continued, usually till the end of the group, but sometimes only until the total contributions paid in, plus profits credited to the shareholder, equal the amount owing on the loan. The shareholder's credit balance is then transferred to extinguish the loan. The profit of the society is derived from premiums on loans sold by auction.

Permanent societies are more in the nature of finance companies, and, while both investors and borrowers must be members, the borrower is frequently merely a nominal member. Investments in a permanent society may be made in either large or small amounts. Capital may be raised by shares with a fixed rate of interest, or subject to dividends varying according to profits. As will be observed from the statistics which follow, terminating societies do not issue capital shares. Bonds, debentures, deposits, and overdraft are other methods of financing. The principal object of a permanent society is to lend money at a profit on land and buildings, either freehold or leasehold. Table mortgages are usually adopted, the term of repayment varying from 10 to 20 years.

NUMBER OF SOCIETIES AND SHARES.—The number of societies in existence in 1947–48 was 90, of which 57 were permanent and 33 terminating. The number of permanent societies has shown little variation during the last ten years, but terminating societies have decreased by 7.

Permanent Societies.—The following table shows for the years 1943–44 to 1947–48 particulars of the number of permanent societies, the numbers of shares (distinguishing Investing shares from Capital shares), and the number of members holding each class.

1943–44.1944–45.1945–46.1946–47.1947–48.
Number of societies5757575757
  Investing Shares     
Number of shares308,759317,400320,633327,988352,315
Members holding19,23920,75922,03022,44223,974
Aggregate value£2,197,617£2,318,526£2,505,816£2,604,868£3,108,583
  Capital Shares     
Number of shares621,406622,244622,176632,706611,092
Members holding5,7525,7095,6855,9345,867
Aggregate value£1,578,713£1,586,828£1,588,623£1,620,663£1,629,286

The average value of each investing share in 1947–48 was £8 16s., as compared with £8 five years earlier. The average value of the capital share was unchanged, being £2 11s. per share in both 1947–48 and 1942–43.

Terminating Societies.—Although the number of terminating societies has declined since 1937–38, the number of groups has risen considerably, particularly in the last four years. During the last ten years, the number of members has increased by 42,161 (170 per cent.), and the number of shares by 227,355, or 241 per cent. As stated earlier, one person may hold shares in several groups of a terminating society. The next table shows the progress of terminating societies during the years 1943–44 to 1947–48. It should be noted that the information pertaining to shares relates to investing or contributory shares, there being no capital shares in a terminating society.

Societies.Groups.Members holding Shares.Investing Shares.
Number.Value.
     £
1943–443318437,140147,1432,395,259
1944–453419541,241182,3602,551,502
1945–463420547,627215,6522,831,593
1946–473322660,094260,9903,204,032
1947–483324967,017321,6973,596,224

The average value per share in 1947–48 was £11 4s., as compared with £16 9s. five years earlier. The large increases in new shares taken up in recent years has considerably reduced the time in which the average share has been in existence, and the average value per share has dropped in consequence.

RECEIPTS AND PAYMENTS.—Following is a summary of receipts and payments for all societies during each of the five years 1943–44 to 1947–48.

1943–44.1944–45.1945–46.1946–47.1947–48.
Receipts£££££
Investors' subscriptions and capital shares729,612815,104896,0771,057,1371,351,170
Advances repaid1,435,9271,547,7621,631,2371,713,7411,646,868
Deposits1,258,0281,302,8161,329,8751,234,3621,375,991
Interest398,372396,109406,957410,315428,375
Other receipts265,220228,885301,989414,841456,193
    Total receipts4,087,1594,290,6764,566,1354,830,3965,258,597
Payments     
Withdrawals486,377441,076357,224407,936450,366
Advances1,829,6552,018,9682,220,8742,361,3302,907,434
Expenses of management103,398105,406103,508124,670147,859
Deposits repaid1,216,8901,143,6721,316,0501,241,0981,343,856
Interest, dividends, &c.506,759465,984518,665617,911637,655
    Total payments4,143,0794,175,1064,516,3214,752,9455,487,170

Share subscriptions have risen substantially in sympathy with the increase in membership. Loans to members which have been rising steadily since 1942–43, increased sharply by £546,104 (23.1 per cent.) in 1947–48, as compared with the previous year. Loan repayments receded slightly in amount in 1947–48, and the ratio of repayments to advances dropped to the unusually low level of 56.6 per cent. The corresponding ratio in 1946–47 was 72.6 per cent. As usual, the deposits receipts and deposits repayments approximately balanced, but the general level of deposits continued to be considerably lower than in pre-war years.

LOANS.—The number and amount of loans at the end of each of the five years quoted were as follows:—

Year.Permanent Societies.Terminating Societies.Total.
Number.Amount.Number.Amount.*Number.Amount.

* Includes balance owing on premiums on loans.

  £ £ £
1943–4414,5548,393,7058,4442,984,48722,99811,378,192
1944–4514,8068,624,4548,3053,231,90123,11111,856,355
1945–4614,7808,891,4678,7583,587,97023,53812,479,437
1946–4714,7009,170,0068,5964,090,93423,29613,260,940
1947–4814,8289,748,2439,2504,162,90124,07813,911,144

The average amount per loan current at the end of each of the five years quoted was:—

Class.1943–44.1944–45.1945–46.1946–47.1947–48.
 £££££
Permanent societies577583602624657
Terminating societies353389410476578
All societies495513530569578

Particulars of loans granted during each of the years 1943–44 to 1947–48 were as follows:—

Year.Permanent Societies.Terminating Societies.
By Ballot.By Auction.
Number.Amount.Number.Amount.Number.Amount.Premiums.
  £ £ ££
1943–442,0081,213,990566313,432405254,64383,372
1944–452,1481,402,788567333,096565350,211132,433
1945–462,2601,484,274620381,623668392,756128,831
1946–472,4211,548,873647417,523853534,004152,875
1947–482,5841,811,368791572,810881560,236195,328

The totals for loans in the above table represent loans granted and differ slightly from the figures shown as advances in the table relating to receipts and payments, where the amounts refer to payments actually made in respect of loans. The rise in the amounts of loans granted in 1947–48 is attributable to increases in both the number of loans granted and the average amount of the loan. Including the premiums on loans the average amounts were £677 and £738 in 1946–47 and 1947–48 respectively.

The average premium on loans auctioned declined progressively from £27.6 per cent. in 1931–32 to £20.0 per cent. in 1935–36 in sympathy with the downward trend in interest rates. In 1947–48, 1946–47, and 1945–46 the average premiums on these loans were respectively £34.9 per cent., £28.6 per cent., and £32.8 per cent. This is an apparent anomaly in view of the fact that the general level of interest rates has fallen since 1935–36. The explanation is that the average term over which loan repayments are spread has been increased by about live years during this period.

Commencing with the year 1937–38, statistics of building societies were extended to include a classification of loans into (1) loans granted to finance the erection of now dwellings, and (2) loans granted to finance the purchase of dwellings already built. For the purposes of the statistics a new dwelling is deemed to include one which has been built by the borrower within twelve months preceding the granting of the loan. Particulars for 1947–48, with totals for earlier years, are as follows:—

To Finance the Erection of New Dwellings.To Finance the Purchase of Dwellings already Built.For other and unspecified Purposes.Totals.
No.Amount.No.Amount.No.Amount.No.Amount.
  £ £ £ £
Permanent societies547595,2701,198851,922839364,1762,5841,811,368
Terminating societies—        
  By ballot159137,093337257,290295178,427791572,810
  By auction200144,835400288,057281127,344881560,236
  Totals, all societies—        
    1947–48906877,1981,9351,397,2691,415669,9474,2562,944,414
    1946–47633547,6121,9751,370,4441,313582,3443,9212,500,400
    1945–46473425,4311,9731,286,4131,102546,8093,5482,258,653
    1944–45306278,3171,9171,328,6161,057479,1623,2802,086,095
    1943–44198170,1782,0201,262,109761349,7782,9791,782,065

The considerable number of loans shown for other and unspecified purposes is due to the fact that some societies are unable to give the necessary classification, so that it may be taken that the foregoing table understates the number of loans actually granted for the erection or purchase of dwellings.

The transfer of normal building activity to construction work in connection with war activities produced a sharp fall in the amount of loans granted to finance the erection of new buildings, each year from 1940–41 to 1943–44 showing a decrease on the preceding year's figures. In the four years since 1943–44 the amount of loans granted for this purpose has increased rapidly, and the amount of £877,198 for 1947–48 is the largest recorded since the introduction of the classification. During the earlier war years the loans which normally would have been used for the erection of new dwellings were evidently diverted to financing the purchase of dwellings already constructed. Since 1943–44, however, loans for the purchase of existing dwellings have fluctuated about a level of approximately £1,300,000 per annum, but now seem to be exhibiting a slight but definite tendency to rise in amount if not in number.

LIABILITIES AND ASSETS.—The liabilities and assets of building societies for each of the years 1943–44 to 1947–48 were as follows:—

LIABILITIES

Year.To Shareholders (including Reserve Funds and Undivided Profits).Deposits.Appropriations not taken up, or in Trust.To Bankers and other Creditors.Total Liabilities.
 £££££
1943–447,568,7424,373,389306,848365,24812,614,227
1944–457,963,5444,428,236398,996409,28813,200,064
1945–468,529,0334,589,615463,988357,95413,940,590
1946–479,157,5224,671,793599,789443,71314,872,817
1947–4810,211,7954,610,555614,104703,09716,139,551

ASSETS

Year.Advances on Mortgage.*Other Investments and Assets.Cash in Hand and at Bank.Total Assets.

* Includes balance owing on premiums on loans.

 ££££
1943–4411,378,192894,346341,68912,614,227
1944–4511,856,355872,314471,39513,200,064
1945–4612,479,437968,896492,25713,940,590
1946–4713,260,9401,174,856437,02114,872,817
1947–4814,482,8631,374,966281,72216,139,551

Prior to 1947–48 the ratio of advances on mortgage to total assets had been falling slightly but steadily. In 1946–47 the ratio was 89.2 per cent., against the 90.2 per cent. disclosed by the 1943–44 figures. This probably indicated some difficulty, not very pronounced, in finding suitable mortgage investments. The large increase in loans made during 1947–48 has, however, had the effect of restoring this ratio to 89.7 per cent. Appropriations not taken up or in trust, which have more than doubled in amount during the last five years, showed only an insignificant increase in 1947–48.

Chapter 33. SECTION 33—MORTGAGES

MORTGAGE LAW.—Under the Property Law Act a “mortgage” is defined as including a charge on any property for securing money or money's worth; and “mortgage-money” means money or money's worth secured by a mortgage. Under the Land Transfer Act “mortgage” means and includes any charge on land created under the provisions of that Act for securing:—

  • The repayment of a loan or satisfaction of an existing debt;

  • The repayment of future advances, or repayment or satisfaction of any future or unascertained debt or liability, contingent or otherwise;

  • The payment to the holders for the time being of any bonds, debentures, promissory notes, or other securities, negotiable or otherwise, made or issued by the mortgagor before or after the creation of such charge;

  • The payment to any person or persons by yearly or periodical payments or otherwise of an annuity, rent-charge, or sum of money other than a debt.

Where the ownership of land is registered under the Land Transfer Act (as, see Section 17A, the great majority of land titles now are) mortgages on that land are granted by virtue of the provisions of that Act: they take effect as securities and do not operate as transfers of the estate or interest charged. In the case of other land or property a mortgage is granted under what is known as the deeds or deeds-registration system; the mortgage in this instance operating as a conveyance or assignment of the land or property mortgaged, for the mortgagee becomes the registered proprietor of the land, subject to the right of the mortgagor to have the property re-registered in his name on the discharge of his obligations under the mortgage. Although in form a mortgage under the deeds system is a conveyance, in equity it is treated as merely a charge on the land.

Property that may be mortgaged.—Any land covered by the definitions of “land” in the Property Law Act, 1908, and the Land Transfer Act, 1915, may be mortgaged. Where, however, property is subject to restrictions upon alienation, these restrictions usually apply to prevent such property being mortgaged. The following are the main instances in which mortgage of property is forbidden by law:—

  • Family homes registered under the Family Protection Act, 1908.

  • Maintenance-moneys under the Family Protection Act, 1908.

  • Inalienable life annuities (Inalienable Life Annuities Act, 1910).

  • Pensions under the War Pensions Act.

  • Monetary benefits under the Social Security Act, 1938.

  • Property subject to restraint upon anticipation, unless by consent of the Supreme Court.

  • Property subject to restraint upon alienation in accordance with section 24 of the Property Law Act, 1908.

  • An infant's property, by the infant (Infants Act, 1908, sections 12 and 13).

Redemption.—A memorandum of discharge vacates the mortgage debt and operates as a deed of reconveyance of the estate and interest of the mortgagee in the mortgaged property “to the person for the time being entitled to the equity of redemption”; but the mortgagee may execute a deed of reconveyance “if he thinks fit and the mortgagor requires it.” The Public Trustee id empowered to receive mortgage-moneys on account of absentee mortgagees, and in the ease of a deed of mortgage to execute the necessary memorandum of discharge. A mortgagor may redeem in the following cases:—

  • Before the due date, on payment of interest for the unexpired term of the mortgage. A special provision in the Mortgagors and Lessees Rehabilitation Act extends the powers of a mortgagor to redeem in certain cases before the due date.

  • At the due date, in accordance with the provisions of the mortgage.

  • After the due date, upon giving three months' notice in writing or paying three months' interest in lieu of notice, except where the mortgagee is or has been in possession or has taken steps to enforce his security, in which case the mortgagor may redeem at any time upon payment of all moneys due.

  • After default and before sale by the mortgagee. If the mortgagee has entered into possession of the mortgaged land or part of it, the mortgagor loses his right of redemption after twenty years from the date of the mortgagee's entering into possession, or after twenty years from the last, written acknowledgment of the mortgagor's title or of his right to redeem.

The Property Law Act abolished what was formerly known as the doctrine of consolidation of mortgages. Where a mortgagor is liable under more than one mortgage, he may now pay off one mortgage without being called on to pay off any mortgage or mortgages on property not comprised in the mortgage he is paying off.

Rights of Mortgagee.—Under New Zealand law a mortgagee has no power of foreclosure in respect of realty. The following represent his principal rights:—

  • He is entitled to the custody of the title-deeds of the property mortgaged.

  • He may sue on the personal covenant contained in the mortgage-deed.

  • He may enter and take possession. This right is exercisable either by actually entering upon the land or a part of it or by bringing an action for possession. At least one month's notice of the intention to exercise the right must be served on the owner for the time being of the land subject to the mortgage. If there is a tenant whose rights are binding on the mortgagee, the latter can give notice to the tenant to pay the rent to him, and this will be equivalent to taking possession.

  • He may assign his interest, either absolutely or by way of submortgage.

  • He may sell, either under the express powers (if any) in the mortgage-deed, or under powers implied by statute, if these have not been negatived in the deed.

  • Instead of selling, as above, a mortgagee entitled to exercise his power of sale may apply to the Registrar of the Supreme Court to conduct the sale. The mortgagee must state in his application the estimated value of the land, and the date of the sale must be not less than one month and not more than three months from the date of the application. He may bid at the sale and become the purchaser of the land, but in such case the amount paid for the land shall not be less than the value of the land as estimated. If it is, the mortgagor must be allowed in account the full amount of the estimate. As in the case of the right to enter and take possession, no power of sale shall become exercisable unless at least one month's notice of the contemplated action has been served on the owner of the land.

MORTGAGORS AND LESSEES REHABILITATION.—The economic conditions prevailing in New Zealand consequent upon the world-wide depression led to the enactment in the early months of 1931 of legislation designed for the relief of mortgagors. The complexity of the problem necessitated much further legislation, and a consolidating Mortgagors and Tenants Relief Act was passed in December, 1933. The Rural Mortgagors Final Adjustment Act, 1934–35, which was passed in April, 1935, represented a definite attempt on the part of the Government to effect a final clearing-up of the burden of rural indebtedness. Both these enactments were repealed by the Mortgagors and Lessees Rehabilitation Act, 1936, a description of which may be found in the 1940 issue of the Year-Book (pp. 743–7).

In addition to the relief granted to mortgagors by way of adjustment of their liabilities, a reduction in interest-rates was effected by Part III of the National Expenditure Adjustment Act, 1932. The reduction in the rate of interest was 20 per cent., but the reduced rate was not to be below 6½ per cent. in the case of chattel mortgages, nor 5 per cent. in the case of other mortgages, except in the case of income-tax-free company debentures to which section 171 of the Land and Income Tax Act, 1923, was applicable. In such cases the minimum was fixed at 4½ per cent. The Act originally applied to interest accruing on or after 1st April, 1932, and before 1st April, 1935, but the reduction was later made permanent. Mortgages (not being for a fixed term, expired or unexpired) securing the repayment of principal, moneys repayable on demand, and mortgages executed after 1st April, 1932, are exempt from the provisions of the Act.

The maximum rates of interest payable under mortgages adjusted in terms of the Mortgagors and Lessees Rehabilitation Act, 1936, were fixed by Order in Council at 4¾ per cent. per annum for first mortgages on land and 6 per cent. for all other mortgages.

The Mortgagors and Lessees Rehabilitation Act set up a Court of Record entitled the Court of Review, and provided for the appointment of Adjustment Commissions. Orders made by these Commissions in adjustment of mortgages, &c., were registered with the Court. Statements showing the number of applications dealt with, and the extent to which relief was granted to mortgagors and lessees in those cases where orders were made by Adjustment Commissions and filed in the Court of Review are given on page 571 of the 1947–49 Year-Book.

WAR REGULATIONS AFFECTING MORTGAGES.—Following the outbreak of war in September, 1939, the Courts Emergency Powers Regulations 1939 provided that no person could, without the leave of the appropriate Court, do or complete certain acts in respect of existing contracts, &c. These acts included the calling-up of sums secured by mortgage, the exercise of a power of sale under a mortgage, and the commencement or continuation of proceedings for the breach of a covenant under a mortgage other than a covenant for the payment of interest.

The 1939 regulations referred to were superseded by the Debtors Emergency Regulations 1940, and special provisions for the relief of mortgagors were made at the same time (31st July, 1940) by the Mortgages Extension Emergency Regulations 1940. The Mortgages Extension Emergency Regulations applied to all mortgages whether executed before or after the commencement of the regulations, and notwithstanding that any power of sale, rescission, or entry into possession may have been exercised. An amendment in 1941 made special provision in respect of mortgages covering stock on, or produce of, mortgaged land. An outline of these regulations, which were revoked as from 22nd November, 1947, is contained on pages 546–7 of the 1946 Year-Book.

MORTGAGES REGISTERED AND DISCHARGED.—A table is given showing the amount represented by mortgages registered and discharged during each of the last twenty years.

Year Ended 31st March,Mortgages Registered.Mortgages Discharged.
Number.Amount.Number.Amount.
  £ £
193134,60430,208,44725,04420,056,691
193219,02413,410,58114,86010,036,385
193314,0109,161,66311,3038,149,355
193412,7257,802,85311,1009,086,847
193515,14211,845,63414,72413,732,853
193619,11816,227,05818,57817,553,233
193722,31819,697,06421,82219,799,186
193824,04319,008,18423,62919,344,030
193925,18420,041,44622,94316,594,825
194022,63217,621,11220,69414,101,049
194121,66016,267,27422,89715,933,724
194220,66714,549,55522,57715,098,801
194317,07512,140,51323,70816,679,795
194419,92815,596,79027,16120,029,988
194521,21218,099,86127,41421,012,079
194624,51622,519,12229,17423,313,916
194729,88231,088,75032,23425,947,489
194829,89332,041,08529,00225,396,004
194929,57835,298,60026,64223,375,257
195030,35236,005,52226,09323,101,350

The figures given in the preceding table have been adjusted to exclude duplicate registrations—i.e., cases in which a mortgage has been registered in more than one district. It should also be noted that the figures include collateral mortgages and guarantee mortgages not representing money indebtedness. On the other hand, no amount is shown as secured in a proportion of cases where a mortgage is given in anticipation of advances, &c. In addition there are numbers of privately arranged advances which are not registered: and stock and crop liens, bills of sale, and instruments under the Chattels Transfer Act are not included in the statistics.

Many discharges are not registered, particularly in the case of leaseholds and also of second or other further mortgages when the power of sale has been exercised by the first mortgagee. The figures for discharges are further affected by the high proportion of table mortgages. This is particularly so in cases where the mortgage is approaching maturity, since the whole amount remains on the register until finally discharged, despite the fact that the original amount of indebtedness has been considerably reduced.

Mortgages registered.—The total amount for which mortgages were registered, both under the deeds-registration system and under the Land Transfer Act, in each registration district during the last five financial years is given in the next table.

District.1945–46.1946–47.1947–48.1948–49.1949–50.
 £££££
Auckland6,804,2649,489,3289,498,63211,563,86412,462,672
Gisborne290,062458,983551,194584,967670,627
Hawke's Bay1,278,9341,784,5841,925,1292,023,9102,252,845
Taranaki1,002,5911,696,7081,637,1721,580,4271,478,319
Wellington4,775,3896,263,4746,961,8727,415,5087,243,926
Marlborough319,289447,766479,260497,329532,115
Nelson619,190925,6491,010,617908,9321,026,206
Westland219,780270,837330,102286,272278,687
Canterbury3,702,8895,366,1285,309,1955,710,6555,486,790
Otago2,185,4153,035,9962,735,5983,034,6972,749,042
Southland1,341,8591,947,0471,873,3691,787,2491,869,575
    Gross totals22,539,66231,686,50032,312,14035,393,81036,048,804
    Duplications20,540597,750271,05595,21043,282
    Net totals22,519,12231,088,75032,041,08535,298,60036,005,522

Mortgage registrations, which declined appreciably during the first three years-following the outbreak of war, commenced to move upwards again early in 1943. In each succeeding year, a substantial increase was recorded, but it was not until 1945–46 that the figures of the pre-war year 1938–39 were exceeded. In the next year (1946—47) a particularly heavy increase was recorded, the not amount for that year being £8,569,628, or 38.1 per cent., greater than in 1945–46. Each succeeding year has shown a further increase, but to a lesser degree. The total amount registered in 1949–50 exceeded that of the pre-war year 1938–39 by £15,964,076 (79.7 per cent.). The high figures of the last few years have been contributed to in some measure by the registration of mortgages in respect of rehabilitation assistance granted to ex-servicemen. The number of mortgages comprising the net aggregate in 1949–50 was 26,321, an increase of 219 over the total for 1948–49, and an increase of 3,672 (16.2 per cent.) as compared with 1938–39. These figures are exclusive of registrations in which the amount of consideration was not stated.

Of the net total of £36,005,522 registered in 1949–50, only £5,420 was in repect of mortgages under the deeds system. This amount has been gradually decreasing since the passing of the Land Transfer (Compulsory Registration of Titles) Act, 1924, which provided for the bringing of all land titles under the provisions of the Land Transfer Act. This work has now been completed except in the Auckland District, although there are a few titles yet to be dealt with in other districts owing to doubts as to ownership, &c. (see Section 17A).

Classification by Amount.—Of the net total of £36,005,522 registered for the financial year 1949–50, mortgages up to £500 in value represented 6.2 per cent. of the total; from £501 to £1,000, 14.5 per cent.; from £1,001 to £5,000, 57.3 per cent.; and above £5,000, 22.0 per cent. In regard to numbers, however, 27.5 per cent. were for amounts not exceeding £500, 25.2 per cent. for amounts from £501 to £1,000, 41.0 per cent. for amounts from £1,001 to £5,000, and only 3.3 per cent. for amounts exceeding £5,000. The following table gives the number and amount in each registration district according to the sum secured.

District.£500 and under.£501 to £1,000.£1,001 to £5,000.Over £5,000.
Number.Amount.Number.Amount.Number.Amount.Number.Amount.
  £ £ £ £
Auckland2,011641,5922,2711,786,9673,9957,257,9082552,776,205
Gisborne11939,49810279,318162303,83826247,973
Hawke's Bay28488,815332264,9436101,104,21589794,872
Taranaki18558,113209167,160456873,64953377,397
Wellington1,473412,1241,208949,7672,596449,4661571,432,569
Marlborough8828,6758667,534164303,55920132,347
Nelson24568,792199156,864384683,13217117,418
Westland11838,3148663,74580148,928427,700
Canterbury1,286430,4791,091863,6601,7523,043,7131391,148,938
Otago1,119329,604717560,0278751,523,83039335,581
Southland30894,365340257,912513960,35569556,943
Cross totals7,2362,230,3716,6415,217,89711,58720,652,5938687,947,943
Duplications136511,000510,539431,378
Net totals7,2352,230,0066,6405,216,89711,58220,642,0548647,916,565

In addition to the numbers shown above, there were 4,031 mortgages registered in 1949–50 and 3,476 in 1948—49 for which no amounts were shown. Excluding these, the average amount for each mortgage registered in 1949–50 was £1,368, as compared with £1,352 in 1948–49, and £885 in 1938–39.

Mortgages on Urban and Rural Securities. —Figures are available in the case of land transfer mortgage registrations showing for each registration district the amounts, advanced on urban and on rural properties. No similar data are available in regard to the insignificant amount registered under the deeds system. The distinction is between “town and suburban” and “country” holdings, but sufficient information to permit of a strictly accurate classification is not always available. Generally, however, mortgages are regarded as town and suburban if secured on properties situated within cities or boroughs, or on small holdings in the nature of building allotments which are not definitely distinguishable as country properties. Mortgages classified as town and suburban in 1949–50 were secured on areas averaging a little less than one-third of an acre in extent, as compared with an average area of some 373 acres in the case of “country” securities.

Town and suburban securities accounted for 79 per cent. of the number and 63 per cent. of the aggregate value of land-transfer mortgages in 1949–50, as compared with 21 per cent. and 37 per cent. respectively in the case of country properties.

The following table gives mortgages registered in the various districts during the year 1949–50 under the Land Transfer Act.

District.Town and Suburban.Country.
Number.Area.Amount secured.Number.Area.Amount secured.
  Acres.£ Acres.£
Auckland8,3963,4348,251,8572,095443,0984,205,395
Gisborne353157276,57814693,421394,049
Hawke's Bay1,0832951,042,527414134,1411,210,318
Taranaki697413645,52336997,195830,796
Wellington5,2711,0625,114,641949274,6492,129,285
Marlborough308161245,29311376,129286,822
Nelson681169627,54626653,217398,660
Westland25560171,0548019,789107,633
Canterbury3,5921,0693,463,328958460,2722,023,462
Otago2,3954811,918,302561333,392830,740
Southland899306874,143472412,242995,432
    Totals23,9307,60722,630,7926,4232,397,54513,412,592

An eleven-year summary upon similar lines is also given. Mortgages on country properties after 1936–37 and for two years later in regard to town and suburban properties showed an almost continuous recession until 1943–44. Each subsequent year up to and including 1946–47 witnessed a substantial increase in mortgages on both urban and rural properties, the increase in 1946–47 being particularly heavy. The 1947–48 registrations showed little difference from those of the preceding year, though there, were considerable increases in both categories for the 1948—49 year. The amount secured on town and suburban properties by mortgages registered in 1949–50 showed an increase of £1,127,040, 5.2 per cent., over the previous year, and an increase of £10,878,194 or 92.6 per cent., above the pre-war year 1938–39. The amount secured on country properties by mortgages registered in 1949–50 was less than the 1948–49 figure by £463,572, or 3.3 per cent., while compared with 1938–39 there was an increase of £4,830,343 (56.3 per cent.).

Year Ended 31st March,Number.Area.Amount secured.
Town and Suburban.Country.Total.Town and Suburban.Country.Total.
  Acres.Acres.Acres.£££
194022,5475,0351,845,6561,850,6919,879,3897,688,12617,567,515
194121,6184,9541,698,6091,703,5638,705,4517,706,88216,412,333
194220,6564,9741,407,8191,412,7939,137,4365,800,94214,938,378
194317,0443,9261,083,7501,087,6767,493,5924,610,39212,103,984
194419,9034,6681,477,2071,48,8758,701,3216,880,50715,581,828
194521,1615,1791,527,3481,532,52710,542,9487,542,07218,085,020
194624,4836,2971,640,7291,647,02613,987,9678,508,46222,496,429
194729,8607,4672,321,0852,328,55218,399,11613,260,06431,659,180
194829,8768,0142,267,8272,275,84119,103,41813,183,63432,287,052
194929,5707,5602,293,5452,301,10521,503,75213,876,16435,379,916
195030,3537,6072,397,5452,405,15222,630,79213,412,59236,043,384

NOTE.—These figures, although excluding certain miscellaneous registrations, have not been adjusted to exclude duplications.

Rates of Interest.—Classified according to the various rates of interest, and including duplicate registrations (to the extent of £95,210 in 1948–49 and £43,282 in 1949–50), the amounts in the mortgage-deeds registered were:—

Rate per Cent.1948–49.1949–50.
 ££
1/2 11,000
17,49525,580
3,233 
 1,060
236,017121,084
 1,500
68,54559,075
2,500 
2⅘6,895 
310,671,81310,083,002
3⅓ 740
7,075 
135,175154,261
20,21121,314
3⅞1,0002,500
44,893,6185,345,980
4⅛1,249,1631,489,040
4⅕9,4505,300
3,389,1334,307,376
4⅜3,050 
6,735,4426,946,351
4⅝23,40621,813
152,521235,728
52,685,8522,439,760
5⅕ 450
51,46550,675
518,243225,508
5752,300
6422,537377,201
18,86544,720
6⅓1,100 
205,348205,110
96 
7142,882179,452
26,49022,732
2,007 
861,32380,400
200500
95,7503,121
1033,39231,880
12½ 500
15522210
20305155
25190 
30 200
401,073250
Unspecified3,799,8533,550,976
Totals35,393,81036,048,804

The average rate of interest on new mortgages was maintained at over 6 per cent. per annum from 1922 to 1932, but with the advent of the depression period and the effect of the mortgage relief legislation, subsequent years showed decreases. The inclusion of State Advances mortgages from the year 1935–36 onwards has no doubt also had the effect of reducing the average rate, and in addition the advent of rehabilitation mortgages to ex-servicemen has affected the rate during the last few years. State Advances mortgages were excluded from the average computation for some years prior to 1935–36. Averages for recent years have been as follows:—

Year Ended 31st March,Average Rate per Cent.
19404.69
19414.69
19424.73
19434.72
19444.63
19454.51
19464.10
19473.85
19483.90
19493.98
19503.99

As indicated earlier in this section (page 650), rates of interest since 1932 have been considerably affected by legislative action. In 1931–32, the financial year immediately preceding the operation of the National Expenditure Adjustment Act, the average rate of interest on mortgages registered was 6.28 per cent., as compared with 4.51 per cent. in 1944—45. The sharp fall to 4.10 per cent. in 1945–46 and the further fall to 3.85 per cent. in the following year were mainly due to rehabilitation loans granted to ex-servicemen by the State Advances Corporation. The rate of interest charged on rehabilitation loans for residential and farm properties is 3 per cent., and of the gross amount of mortgages registered during the three years 1947—48, 1948–49, and 1949–50 no less than 36.7 per cent., 30.2 per cent., and 28.0 per cent. respectively were at this rate, as compared with only 2.0 per cent. in 1944–45. The slight rises in the average rate for recent years probably reflect the gradually decreasing though still substantial proportion of the gross amount which is due to rehabilitation loans. In 1931–32 only 10.2 per cent. of the specified amount was at rates not exceeding 5 per cent., while no less than 43.3 per cent. was at rates exceeding 6 per cent. The corresponding figures for 1949–50 were 96.2 per cent. and 1.8 per cent. respectively.

A further analysis of the position is given below.

Year Ended 31st March,Not exceeding 3 per Cent.Over 3 per Cent. to 4 per Cent.Over 4 per Cent. to 4½ per Cent.Over 4½ per Cent. to 5 per Cent.Over 5 per Cent. to 6 per Cent.Exceeding 6 per Cent.
Amount
 ££££££
1940100,724682,5837,676,5605,201,3751,220,653350,802
194194,615878,8376,275,9404,763,363947,733280,391
1942112,251537,7476,121,5574,007,150862,531398,889
1943119,998470,6674,726,3663,545,127538,605237,719
1944158,3581,122,6096,686,8103,987,689529,353300,820
1945456,0051,179,9919,333,2153,069,124420,288398,760
19465,883,0121,838,4477,970,5553,077,333475,215366,029
194712,317,2704,456,5888,043,1712,955,989515,680417,148
194811,999,1684,725,0538,550,2552,584,167942,998606,446
194910,796,4985,057,07911,386,2382,861,779992,820499,543
195010,302,3015,524,79512,748,0672,697,301656,134569,230
Percentage of Total
 Per Cent.Per Cent.Per Cent.Per Cent.Per Cent.Per Cent.
19400.74.550.434.18.02.3
19410.76.647.436.07.22.1
19420.94.550.833.37.23.3
19431.24.949.036.85.62.5
19441.28.852.331.24.12.4
19453.17.962.820.72.82.7
194630.09.440.615.72.41.9
194742.915.528.010.31.81.5
194840.816.029.18.83.22.1
194934.216.036.09.13.11.6
195031.717.039.28.32.01.8

The trend in interest-rates is further illustrated in the following diagram, which shows also the movement in mortgage registrations. The total amounts indicated in the diagram and in the two immediately preceding tables do not represent the total registrations in the respective years, as mortgages on which the rate of interest was not specified have been excluded.

Mortgages discharged.—After a very long period during which the value of mortgages registered substantially exceeded the amount represented by mortgages released, discharges exceeded registrations for a period of five years commencing with the year 1933–34. In the subsequent three years the reverse position obtained, but, commencing with 1941–42, discharges again commenced to exceed registrations, and continued to do so up to 1945–46, although the margin in that year was not very great. In each of the succeeding four years registrations exceeded discharges, the difference for each of the last two years being £11,923,343 in 1948–49 and £12,904,172, in 1949–50.

The net amount released in 1946–47 was higher than in any other year since 1929–30. The 1949–50 total was £273,907 less than that recorded in 1948–49.

The total amount of mortgages discharged, including mortgages under the deeds-registration system, for the last four years is as follows:—

District.1946–47.1947–48.1948–49.1949–50.
Number.Amount.Number.Amount.Number.Amount.Number.Amount.
  £ £ £ £
Auckland9,8687,972,6708,8146,911,0857,9836,306,5408,0876,791,423
Gisborne626574,550541490,116511546,550536591,843
Hawke's Bay1,6141,570,3931,4731,653,8841,3071,458,8121,3041,418,736
Taranaki1,6091,486,0911,3871,451,6511,0651,147,3401,0801,021,207
Wellington6,5286,358,7706,2975,972,3555,6805,217,4145,2875,245,504
Marlborough416382,249368618,165368397,149387387,166
Nelson930463,899849541,421717461,599672436,353
Westland293169,311299233,120245130,006255160,583
Canterbury4,9384,600,3174,3864,155,5804,4664,269,3754,2373,812,066
Otago3,6452,264,6473,1292,184,9182,8732,188,9542,8261,893,131
Southland1,7811,256,3701,4651,214,5841,4331,258,3741,4221,343,338
    Gross totals32,24827,099,26729,00825,426,87926,64823,382,11326,09323,101,350
    Duplications141,151,778630,87566,856  
    Net totals32,23425,947,48929,00225,396,00426,64223,375,25726,09323,101,350

Chapter 34. SECTION 34—BANKRUPTCY

THE law relating to bankruptcy in New Zealand is contained in the main in the Bankruptcy Act, 1908 (which is a consolidation of previous enactments), and its amendments. Jurisdiction in bankruptcy matters is vested in the Supreme Court. The Governor-General, however, may by Proclamation confer similar jurisdiction on a Magistrate's Court in cases where the liabilities do not exceed £300.

All proceedings in bankruptcy are commenced by a petition filed in the Court. A petition may be filed either by the debtor or by a creditor, a fee of £6 being payable. The filing of a debtor's petition is equivalent to an order of the Court adjudging the debtor a bankrupt, no order being required in this case. Not less than £30 in the aggregate must be owing by the debtor to the creditor or creditors filing a petition.

Section 7 of the Statutes Amendment Act, 1947, increased the value of furniture which a bankrupt may select and retain from £50 to £100.

Immediately on a debtor's petition being filed or adjudication being made on a creditor's petition, the Registrar of the Court gives notice to the Official Assignee in Bankruptcy, in whom all the property of the bankrupt thereupon vests. The bankrupt must hand over his books of account, papers, deeds, &c., to the Official Assignee, and furnish such information as is necessary to enable the Assignee to prepare the bankrupt's balance-sheet of the estate. The bankrupt may also be required to produce statements of accounts, balance-sheets, &c., covering the period of three years immediately prior to the commencement of his bankruptcy, give inventories of his property and debts, and generally assist in the realization of his property. The Assignee may summon the bankrupt before himself, or before a Magistrate, to be examined on oath. The Bankruptcy Amendment Act, 1927, forbids (save with the consent of the Court, on the application of the Official Assignee) the publication of a report of any examination of a bankrupt before the Assignee or of any matter arising in the course of such an examination.

The Official Assignee is empowered to sell the bankrupt's property, to claim debts due to the bankrupt estate, to carry on the business of the bankrupt so far as is necessary or expedient for its beneficial winding-up, or to divide the property among the creditors. The bankrupt may be appointed by the Official Assignee to manage his estate or carry on his business on behalf of the creditors.

Creditors may accept a composition in satisfaction of the debts due to them. In such a case, after approval of the Court, a deed of composition is executed and filed, and the bankruptcy annulled.

On application being made by the bankrupt, the Court is empowered to grant him an order of discharge, either absolute, suspended, or conditional. The application, which must be made within four months after adjudication, may be opposed either by the. Official Assignee or by any creditor who has proved his claim. A public examination of the bankrupt may be demanded by the Assignee or by a creditor.

UNDISCHARGED BANKRUPTS.—Section 14 of the Bankruptcy Amendment Act, 1927, requires the annual compilation of a list showing the names, occupations, and other particulars of all persons who have been adjudged bankrupt since 31st March, 1927, and who have not obtained an order of discharge, or whose order of discharge is suspended for a term, or is subject to conditions remaining unfulfilled.

Section 9 of the Statutes Amendment Act, 1936, provides that the Minister of Justice may from time to time publish the list, or so much of it as relates to adjudications within any specified period ending on the date of the compilation of the list.

TRANSACTIONS IN BANKRUPTCY.—The number of transactions in bankruptcy during the last five years is given below. A long-term record of the more important features will be found in the Statistical Summary, near the end of this volume.

Year.Petitions by Debtors.Adjudications on Petitions by Creditors.Cases in which Composition accepted.Orders of Immediate Discharge granted.Cases in which Orders of Discharge were suspended.
19453213 585
1946457 536
194759152564
1948115332405
1949144351534

In the case of a partnership, not only the partnership but each partner is counted in the total of transactions.

The numbers of bankruptcies have been exceptionally low during the war and post-war years, although there were sharp increases in 1948 and 1949. There was an annual average of 255 bankruptcies during the five years 1935 to 1939, compared with an average of 100 for the years 1945 to 1949.

The general bankruptcy statistics do not cover private assignments and compositions, but relate only to cases dealt with by Official Assignees. Certain statistics of private assignments are available, and details of these appear at the end of this section.

ASSETS AND LIABILITIES.—Debtors are required to file a statement of the extent of their liabilities and assets, but there is usually a marked difference between these statements and the amounts actually realized by the Official Assignee or the debts subsequently proved by creditors. During the last decade the amounts actually realized by Official Assignees averaged 116 per cent. of assets according to debtors' statements, and 33 per cent. of debts proved.

It should be understood that in the following table the figures in each column refer to all transactions under the respective heads during the year, the amounts realized by Assignees and paid in dividends and preferential claims relating partly to the current year's bankruptcies (many of which, however, are not disposed of daring the year) and partly to cases commenced in previous years.

Year.Number of Bankruptcies.Debtors' Statements of Assets, excluding Amounts secured to Creditors.Amounts realized by Official Assignees.Amount of Debts proved.Amounts paid in Dividends and Preferential Claims.

* Including one bankruptcy settled without statement being filed.

† Including two deceased persons' estates under Part IV of the Administration Act, 1908.

  ££££
193926782,31844,171225,49029,950
1940213*35,37242,418125,28930,288
194116524,53835,45371,01134,428
19428213,66529,75332,22719,428
1943456,14818,88320,05213,136
19445113,20913,46651,03516,741
1945459,06018,530118,21610,041
19465210,66320,94248,50614,328
19477421,43315,52844,73112,386
194814856,22950,280143,28224,945
194917953,03538,410203,17320,114

The table following shows for each of the last eleven years the average amount of debts proved per estate, and also the average dividend paid.

Year.Average Debts proved per Estate.Proportion of Dividends to Debts.
 £Per Cent.
193984513.28
194059124.17
194143048.48
194239360.28
194344665.51
19441,00132.80
19452,6278.49
194693329.53
194760427.69
194896817.41
19491,1359.90

The total payments made in 1947, 1948, and 1949 from assets realized were:—

 1947.1948.1949.
 £££
Dividends to creditors (excluding preferential and secured claims)11,59323,75018,920
Preferential claims (rents, wages, &c.)7931,1951,194
Secured claims1,5137,4174,403
Government commission1,3872,8432,301
Cost of actions, solicitors' and supervisors' fees4481,6331,228
Expenses incurred in carrying on estates9501,485955
Other charges1,6142,1131,310
      Totals£18,298£40,436£30,311

Balances in bank to the credit of estates aggregated £27,566 on 31st December, 1949, compared with £20,871 at the end of the previous year.

AMOUNT OF LIABILITIES.—The following table shows for each of the last five years a classification of bankruptcies according to the amount of liabilities.

Liabilities.1945.1946.1947.1948.1949.
Under £5011 63
£50 and under £10062684
£100 and under £250912172831
£250 and under £500109183946
£500 and under £1,000913193038
£1,000 and under £2,00039132333
£2,000 and under £5,0005611012
£5,000 and over2  412
    Totals455274148179

Liabilities in the bulk of failures are for comparatively small amounts. Of a total of 498 bankruptcies over the period quoted, 7 per cent. were for amounts of less than £100, 27 per cent. for amounts of less than £250, and 51 per cent. for amounts of less than £500. In 73 per cent. of the total number the amount of the liabilities was less than £1,000.

OCCUPATIONS OF BANKRUPTS.—The following table shows in broad industrial groups the occupations of those adjudged bankrupt in the last five years.

 1945.1946.1947.1948.1949.
Fishing and trapping  122
Agricultural and pastoral9281024
Forest occupations  137
Mining and quarrying1    
Processes relating to stone, clay, cement, glass, &c.    1
Processes relating to chemicals, animal and vegetable products, n.e.i.     
Processes relating to metals, machines, tools, electric fittings, conveyances, jewellery, &c.1 11412
Processes relating to fibrous materials, textiles, and dress 1211
Processes relating to harness, saddlery, and leatherware    1
Processes relating to food, drink, and tobacco12252
Processes relating to wood, basketware, furniture, &c. 2 11
Processes relating to paper, stationery, printing, photography 11  
Processes relating to other materials    2
Construction or repair of buildings, roads, and railways414173534
Transport and communication7741216
Ships, boats, &c.  1 2
Commerce and finance97133245
Public administration, clerical, and professional45642
Entertainment, sport, and recreation1  12
Personal and domestic service24 513
Indefinite occupations67172312
      Totals455274148179

The grade of occupation of persons adjudged bankrupt during each of the calendar years 1939–49 is given in the following table.

Year.Grade of Occupation.
Working for Wages.Employer of Labour.Working on Own Account but Not Employing Labour.Totals.

* Includes 2 partnership.
The occupation of each partner is included, but not the partnership.

† Includes 1 partnership.

19391494967267*
19401104360213
1941882750165
194242142682
19432191545
194426101451
19452251845
194616171952
194727182974
1948483664148
1949523493179

PRIVATE ASSIGNMENTS.—Official bankruptcies, as explained earlier, do not comprise all financial failures and the bankruptcy statistics have been supplemented since 1928 by the collection of data relating to private assignments. The statistics cover all operations arising out of deeds of assignment made under section 167 (2) of the Stamp Duties Act, 1923.

Amount of Liabilities.—The following table classifies estates assigned during the last five years available according to the amount of liabilities.

Liabilities.1944.1945.1946.1947.1948.

* Includes one estate in which the assignor was subsequently adjudged bankrupt, also one re-registration of a previously assigned estate.

Under £100 1   
£100 and under £250 1   
£250 and under £500 2 42
£500 and under £1,0001 143
£1,000 and under £2,00043166
£2,000 and under £5,000 6637
£5,000 and over11216
Unspecified23 53
    Totals8171023*27

The amounts of liabilities involved are relatively much higher for private assignments than for bankruptcies. For the five years 1944–48, 78 per cent. of privately assigned estates had liabilities of £1,000 and over. For bankruptcies, only 23 per cent. of the total number fell into this category.

Occupations of Assignors.—The occupations of assignors in broad industrial classes during the last five years available were as follows:—

 1944.1945.1946.1947.1948.

* Includes one estate in which the assignor was subsequently adjudged bankrupt, also one re-registration of a previously assigned estate.

Agricultural and pastoral    2
Forestry 1   
Processes relating to—     
  Stone, clay, lime, cement, &c. 1  1
  Fibrous materials, textiles, &c.   1 
  Clothing, dress, &c.    1
  Leatherware, harness, saddlery, &c.    1
  Wood, basketware, furniture, &c. 11 1
Construction or repair of buildings, roads, &c.3851013
Transport and communication12 1 
Commerce and finance32287
Public administration, clerical, and professional  1  
Entertainment, sport, and recreation    1
Personal and domestic service   21
Indefinite occupations 22  
      Totals8171023*27

Of the 1948 total, 18 were employers of labour, 8 were working on own account, and 1 was working for wages.

It will be seen that occupations which are classified as “construction or repair of buildings, roads, &c.” amount to approximately one-half of the total of private assignments for the years covered by the table. Nearly all assignments included in this group are described as “builders.” Certain types of creditors of builders evidently adopt the “private assignment” procedure in preference to the “bankruptcy” procedure. Consequently, builders are more than proportionately represented in the private assignment statistics.

Chapter 35. SECTION 35—NATIONAL INCOME

THE most striking advance made in recent years in the presentation of economic statistics has been the growth, in most countries, of some form of national social accounting. Involving as it does a comprehensive and detailed accounting of the nation's economic transactions, an analysis of this nature provides a background of statistical data indispensable to a proper understanding of current economic trends, and, perhaps even more important, it enables informed estimates of probable future trends to be made. Full information of the nature, and a proposed schemata for the construction, of social accounts has been published by the United Nations Organization,* and in terms of this report the social accounting approach may be defined briefly as follows:—

“Instead of seeking to build up a single total, such as the national income, an investigation is first made of the classification of accounting entities, of the types of accounts that they keep, and of the transactions into which they enter. In this way all the transacting entities of an economic system are classified into broad sectors such as productive enterprises, financial intermediaries, and final consumers, and a series of accounts for each of these sectors is set up, in which the separate entries represent economically distinct categories of transaction. Economic activity is represented by money flows and related book-keeping transactions, actual or imputed, between accounts. The national income and other similar aggregates are obtained from the system by selecting and combining the constituent entries in the accounts.”

Because of the lack of the necessary statistical information it is not yet possible in New Zealand to present a broad classification of this nature, and of necessity attention has been focused primarily on the relevant aggregates mentioned. The principal of these aggregates is that of “National Income,” which, in general terms, measures the total value of all incomes (before deduction of taxation) earned by the residents of New Zealand in producing the current output of goods and services.

Income can be earned in a variety of ways and accrues to individuals according to the manner in which they participate in current production. Salary and wage payments represent the return to labour for services rendered and include in this concept supplementary income in “kind” such as board and keep provided by the employer. Of considerable importance during the war years, the item “pay and allowances of Armed Forces,” while analagous to salary and wage payments when considering the source of such income, does not necessarily fit in with this concept when the former civilian occupation of the serviceman is considered. This fact must be taken into account in comparing the distributive shares of the various groups in the national income over the war period. Clothing, food, accommodation, and other income in “kind” supplied to members of the Armed Forces are included under this heading, as are also deferred-pay, mufti-allowance, and war-gratuity payments.

Rental value of owner-occupied houses is a non-monetary item representing the imputed net rental value (before payment of rates, but after deductions for depreciation, mortgage interest, insurance, and repairs and maintenance) of all owner-occupied houses (except farm houses).

“Other personal income” (excluding company dividends) represents the aggregate income of professional men, farmers, and individual traders, as well as income “Other than salary and wages” of salary and wage earners—e.g., rent, interest, &c. Included under this heading as current income are changes in balances of primary-produce stabilization accounts.

Company income represents the total income (distributed and undistributed) of companies. This means that dividends distributed to individuals are included under this heading, and to this extent the total of “Other personal income” is understated.

Apart from these incomes which result from current productive activities on the part of individuals receiving them, there are other incomes of a “non-productive” nature in the form of social security benefits, pensions, and interest on public debt.

* “Measurement of National Income and the Construction of Social Accounts”: Report of the sub-committee on National Income Statistics of the League of Nations Committee of Statistical Experts.

Those “transfer” incomes, as they are called, do not arise from the current production of goods and services and must therefore be excluded from the national income. They do, however, form part of the intermediate concept of “private income,” which represents the aggregate of earned incomes and unearned “transfer” incomes received by or accruing to persons. Capital receipts—e.g., from deceased person's estates, repayment of debt, &c.—are, however, excluded both from “private income” and “national income.” It includes as income accruing hut not actually received, undistributed incomes of companies. The deduction of direct taxation gives the concept of “private disposable income.”

It is generally accepted that only those incomes arising from production of goods and services of a “marketable” nature should be included as national income, and for this reason no attempt has been made to impute an income in cases where goods or services are both produced and consumed within the household—e.g., services of housewives, and produce of home gardens.

The addition to private income, of Government and local-authority trading profits and lump-sum payments from the United Kingdom Government, and the deduction of “transfer” incomes as detailed above, gives the concept of “net national income at factor cost” or, more briefly, “national income,” which can be defined as the income (before tax) earned by, or accruing to the factors of production, in or only temporarily absent from New Zealand, in producing the current output of goods and services of all kinds. The further addition of indirect taxes (net of subsidies) is necessary to bring the net national income to market price valuation.

Gross national product is obtained by adding depreciation allowances to net national income at market prices, and represents the value of current output before deduction of allowances for depreciation and obsolescence and is equal on the expenditure side to “gross national expenditure.”

The following table shows the principal of the above aggregates and the maimer in which they are derived one from the other for the years 1938–39 to 1949–50:—

PRINCIPAL INCOME AGGREGATES £ (million)

1938–39.1939–40.1940–41.1941–42.1942–43.1943–44.1944–45.1945–46.1946–47.1947–48.1943–49.1949–50.*

* Provisional.

Private income (26)200.1217.7237.8259.4297.7332.8340.9364.5395.7445.5461.4518.3
Plus Government trading income (6)8.710.411.913.416.617.914.515.314.513.211.913.3
  Lump - sum payments from United Kingdom Government (7) 3.03.03.03.03.05.05.05.05.0  
Less transfer incomes—            
Social security benefits and pensions (22)−7.7−11.5−12.5−12.9−14.4−15.8−17.6−20.9−34.8−37.6−39.5−42.6
  Interest on public debt paid in New Zealand (8)−7.0−7.5−7.8−8.4−9.4−11.3−12.9−13.8−15.1−15.3−15.5−16.3
Net national income at factor cost (National Income) (9)194.1212.1232.4254.5293.5326.5329.9350.1365.3410.8418.4472.7
Plus indirect taxation (10)20.621.022.323.227.931.834.037.343.053.046.149.8
Less subsidies (11)−0.6−0.5−1.6−2.7−3.3−3.1−4.6−6.6−11.8−13.6−11.5−14.6
Net national income at market prices (12)214.1232.6253.1275.0318.1355.2359.3380.8396.5450.2453.0507.9
Plus depreciation allowances (13)15.016.016.016.017.017.019.020.022.025.027.029.0
Gross national product (14)229.1248.6269.1291.0335.1372.2378.3400.8418.5475.2480.0536.9

NOTE.—The numbers in parentheses after the items refer to items in the tables given on pages 667–669.

The estimates are based primarily on details of receipts from the social security charge under the Social Security Act of 1938. This charge is levied at a flat rate on the incomes of all individuals over the age of sixteen years and on all companies trading in New Zealand. The charge is deductible at source in the case of salary and wage payments, but is payable during the year following that in which the income is earned in the case of income “other than salaries and wages” of individuals and company incomes.

No allowance has been made for possible evasion of taxation in the estimates, nor has it been possible to take into account “negative” income, or losses of previous years allowed as a set off against current profits for taxation purposes.

The various aggregates are conventionally measured over a given period of time and this in New Zealand is taken as the year ending 31st March. Values in all cases are in terms of New Zealand currency.

Full details of the methods used and a description of the items shown in the following tables are given in the report entitled “Official Estimates of National Income and Expenditure, 1938–39 to 1949–50,” issued as a supplement to the July, 1950, issue of the Monthly Abstract of Statistics.

NATIONAL INCOME AND EXPENDITURE.—Despite considerable difficulty as a result of a lack of certain necessary statistical information, preliminary estimates of national expenditure have been made covering the years 1938–39, 1943–44, and 1946–47 to 1919–50. These estimates should be used with caution, but, provided their limitations are realized, they give a broad indication of the manner in which the national expenditure has been channelled over a period covering the last pre-war year, the peak war year, and four years of reconversion following the cessation of hostilities.

The method necessarily adopted does not allow a check to be made on the present national income aggregates, in which no allowances have been made for any possible understatement of incomes shown in the taxation returns on which the estimates are based. Neither do they take into account “negative” incomes nor losses of previous years allowed as a set-off against current profits for taxation purposes. Any understatement of the gross product total arising from these omissions will therefore be reflected in a similar understatement of “personal consumption” which is shown us a residual item in the break-up of national expenditure (refer table on page 667). Direct estimates are made of current Government expenditure on goods and services, gross capital formation in New Zealand by the private and Government sectors, and the balance of overseas payments on current account (sometimes termed “net overseas investment” or “net lending abroad.”

This treatment has the advantage in an analysis of private income and outlay (table on page 668) of allowing an estimate of private savings to be made, again as a residual item, by deducting direct taxation, and “personal consumption” from total private income. Being a residual item, “personal consumption” will naturally incorporate all the errors of the estimates, but the major apparent error—i.e., that of understatement for the purpose of tax evasion—is cancelled out by a similar error in both the private income and personal consumption totals. Thus private savings, while necessarily including other errors of the estimates, is not distorted by the factor mentioned above.

The various tables are given and their derivation and composition discussed later in this section, but before presenting this detail it is of interest to examine the relationships existing between some of the more important aggregates. The following table gives the principal of these.

PRINCIPAL AGGREGATES AND THEIR RELATIONSHIPS

1938–39.1943–44.1946–47.1947–48.1948–49.1949–50.*

* Provisional.

National income (9) £(m.)194327365411418473
Gross national product (14) £(m.)229372419475480537
Personal consumption (15) £(m.)160175250285340345
  As percentage of gross national product704760607164
Gross capital formation in New Zealand (17) £(m.)43408513370116
  As percentage of gross national product191120281522
Current Government expenditure on goods and services (16) £(m.)3216155636571
  As percentage of gross national product144313131413
Private income (26) £(m.)200333396446461518
Private savings (29) £(m.)168268832878
  As percentage of private income8251719615

NOTE.—The numbers in parentheses after the items refer to items in the tables given on pages 667–669.

The influence of the war on the economy is clearly indicated in this table by the marked changes that occurred in the figures over a relatively short space of time. National income, during the twelve years, has moved from £194(m.) in 1938–39 to £473(m.) in 1949–50, an increase of 144 per cent. The 1949–50 figure represents an increase of 13 per cent. over that for the previous year. This change, following a 2 per cent. increase in 1948–49, indicates that the levelling-off which began to appear in 1948–49 has been superseded by a distinct and substantial upward movement.

The wartime reduction of personal consumption is revealed by a move from 70 per cent. of gross national product for 1938–39 to 47 per cent. for the peak war year in 1943–44, while gross capital formation in the same period fell from 19 per cent. to 11 per cent. respectively. The percentage of the gross national product going to finance current Government expenditure on goods and services (including all expenditure on war and defence) had increased between 1938–39 and 1943–44 from 14 per cent. to 43 per cent. Thus, after allowing for normal Government expenditure, at the peak of the war just over one-third of the national expenditure was being used to finance the war effort.

* Since the previous estimates of national income were published in 1949, better information has become available regarding capital formation, which, though not, yet of a nature to permit fully accurate estimates to be prepared, has provided the basis of a fresh calculation of capital formation for the above series. As figures for private savings and personal consumption are derived as residuals, the revision of capital formation has necessitated their revision also. The fact that the figure of personal consumption is in the nature of a final residual is signified by its being rounded off in the accompanying tables to the nearest £5(m.).

The reconversion to a peacetime economy is shown by the revised statistics* of consumption, savings, and investment for the years 1946–47 to 1949–50. Personal consumption moved upwards with the availability of goods, rising from its wartime level of 47 per cent. of gross national product to 60 per cent. in both 1946–47 and 1947–48. In 1948–49 it rose sharply to 71 per cent., which was higher than the level obtaining in 1938–39 (itself a very high consumption year), but it steadied again in 1949–50 to 64 per cent. Gross capital formation showed a substantial post-war recovery, the high level in 1947–48 being accounted for mainly by very heavy investment in stocks which took place in that year. By 1948–49 available statistics suggest that war-time depletions in inventories were largely overcome, so that the year 1948–49 revealed a falling-off in this item (this trend being accentuated by some losses on inventories due to revaluation consequent on the alteration in the exchange-rate to parity with sterling). The expenditure of 22 per cent. of the gross national product on capital formation in 1949–50 shows a continuation of the post-war trend of a relatively high level of investment keeping pace with an expanding national income. Private savings over the six years have shown marked variations, moving from 8 per cent. of private income in 1938–39 to 25 per cent. in 1943–44. By 1946–47 this ratio had fallen to 17 per cent., but in 1947–48, owing mainly to the time lag between assessment and payment of the main direct taxes and to the heavy restocking already referred to, had risen to 19 per cent. In 1947–48 taxation shown as a deduction from that year's income was mainly attributable to 1946–47 income which was at a much lower level. Correspondingly, a large part of the direct taxation paid on 1947–48 incomes is not deducted until 1948–49. Thus in 1947–48, when a substantial increase in private income took place, an increase in savings is shown, partly due to this difference between tax due on the income earned in that year and tax paid from that income. After making due allowance for this factor, however, the trend of savings as a percentage of private income indicates a steep rise during the war years followed by a moderate reversion by 1946–47, but dropping heavily in 1948–49 to only 6 per cent. of private income. The year 1949–50 shows a relative level of saving just slightly above the average for all the post-war year, and almost twice as high as the last pre-war year. It must be realized that private savings in this sense is obtained from the identity that private income = personal consumption + direct taxation + private savings, and therefore savings is that part of private disposable income that is not spent on personal consumption and will thus include, besides direct monetary saving, capital expenditure by persons from current income, principally in the form of property purchase and construction. It also includes undistributed profits of companies and such items as changes in balances of primary-produce stabilization accounts, so that no direct comparison can be made between the series given and any series showing purely monetary savings.

The next four tables give the complete detail of the various aggregates already mentioned. The manner in which they are derived from the accounts covering the different sectors of the economy is outlined in the following notes.

National Income and Expenditure.—This table gives the composition of the gross national product and the manner in which it has been expended—i.e., gross national expenditure. As mentioned previously, “personal consumption” is obtained as a residual item in this table, all other aggregates being obtained by direct assessment.

Private Income and Outlay.—This table gives in detail the break-up of private income into the various factor incomes and, on the expenditure side, the manner in which these incomes are spent on personal consumption, paid in direct taxation, or saved. A breakup of “other personal income” is given for each of the years except 1943–44, when this detail was not available. The total of personal consumption derived from the preceding table is carried forward to this table, and private savings is obtained as a residual item. The limitations of these two residual items have already been mentioned (see page 664) and, for the reasons given, care should be taken in their use.

It is not possible at present to analyse company income further, and for this reason “other personal income” excludes company dividends, and private savings necessarily includes undistributed company profits.

General Government and Local Authority Revenue Account.—The Government sector is discussed in more detail later in this section, but this table gives a consolidated statement of General Government and local authority revenue and expenditure, showing as a balance that portion of the revenue which is made available for capital investment in the case of a surplus, or the call on private savings made necessary by a deficit. The effects of the heavy war expenditure in 1943–44 are indicated by the exceptional expenditure on goods and services in that year (principally on war and defence), and the consequent negative balance of £63(m.) in the account.

Combined Capital Account.—This account indicates the manner in which finance for capital formation has been made available (a) from private savings, (b) from revenue surpluses of Government, and (c) from amounts set aside as depreciation allowances from income. Gross capital formation represents the construction in New Zealand or purchase from overseas of durable capital assets both by the private and Government sectors, plus the net investment in stocks by trading concerns. This latter figure is one on which little information is at present available, find the allowances made to cover it are based on indirect assessments made with reference to such things as the abnormal level of imports in a given year, and for this reason may be subject to considerable revision when more detailed information becomes available. The net, change in overseas assets is the contra item to “exports less imports” shown in the national income and expenditure table, and, in the absence of comprehensive balance of payments figures for New Zealand, is an estimate of the change in overseas investments consequent on this movement in the balance of payments on current account. Once again the effects of war finance are clearly discernible, the major part of total available funds in 1943–44 going to finance the Government deficit principally incurred on account of war expenditure. The process of reconversion from 1946–47 onwards, apart from abnormal restocking by trading concerns, is indicated by the figures of gross capital formation which indicate that, notwithstanding shortages of certain essential materials, wartime-enforced postponements of purchase and construction of capital equipment are being gradually overcome.

These four tables, then, give a comprehensive picture in broad terms of the changing pattern of New Zealand's economy over a period of twelve years which have seen the dislocating effects of a major war. One important point to consider when examining this picture, however, is that all the figures given represent “values,” and consequently are inflated to a greater or less extent by price movements over the period. In the absence of any price index of a sufficiently wide coverage to deflate the various aggregates, it is necessary to recognize this fact and wherever possible make some allowance for it.

The following are the four tables mentioned:—

NATIONAL INCOME AND EXPENDITURE £(million)

Income.1938–39.1943–44.1946–47.1947–48.1948–49.1949–50.*

* Provisional.

1. Salary and wage payments111140186210227253
2. Pay and allowances of Armed Forces1588645
3. Rental value, owner-occupied houses689101111
4. Other personal income5474109129132154
5. Company income203748534853
6. Government and local-authority trading income91815131213
7. Lump - sum payments from United Kingdom Government 355  
8. Less public debt interest paid in New Zealand−7−11−15−15−16−16
9. Net national income at factor cost194327365411418473
10. Plus indirect taxation213243534650
11. Less subsidies−1−3−12−14−12−15
12. Net national income at market prices214355397450453508
13. Plus depreciation allowances151722252729
14. Gross national product229372419475480537
Expenditure.1938–39.1943–44.1946–47.1947–48.1948–49.1949–50.*
15. Personal consumption160175250285340345
16. Current Government expenditure on goods and services3216155636571
17. Gross capital formation in New Zealand43408513370116
18. Net overseas investment−6−429−654
19. Gross national expenditure229372419475480537

PRIVATE INCOME AND OUTLAY £(million)

Income,1938–39.1943–44.1946–47.1947–48.1948–49.1949–50.*

* Provisional.

20. Salary and wage payments111140186210227253
21. Pay and allowances of Armed Forces1588645
22. Social security benefits and pensions81635383943
23. Rental value of owner-occupied houses689101111
24. Other personal income:—      
    (a) Professional occupations559111213
    (b) Commerce, trade, or business921242527
    (c) Farming2547606484
    (d) Changes in balances in primary produce stabilization accounts−2+11+12+10+8
    (e) Interest, rent, &c.1516161616
    (f) Other25567
25. Company income (before distribution)203748534853
26. Private income (before tax)200333396446461518
Outlay.1938–39.1943–44.1946–47.1947–48.1948–49.1949–50.*
27. Personal consumption160175250285340345
28. Direct taxation247578779495
29. Private savings168268832878
30. Private outlay200333396446461518

GENERAL GOVERNMENT AND LOCAL AUTHORITIES—REVENUE ACCOUNT £(million)

Revenue.1938–39.1943–44.1946–47.1947–48.1948–49.1949–50.*

* Provisional.

31. Taxation      
    (a) Direct247679799597
    (b) Indirect213243534650
32. Trading income91815131213
33. Less direct taxes paid by Government trading undertakings −1−1−2−1−2
34. Lump-sum payments from United Kingdom Government 355  
35. Total revenue54128141148152158
Expenditure.1938–39.1943–44.1946–17.1947–48.1948–49.1949–50.*
36. Current expenditure on goods and services3216155636571
Transfers to Private Income      
37. Social security benefits and pensions81635383943
38. Interest on public debt paid in New Zealand71115151616
39. Subsidies1312141215
40. Balance of revenue over expenditure6−6324192013
41. Total expenditure plus or minus revenue balances54128141148152158

COMBINED CAPITAL ACCOUNT
£(million)

Revenue1938–39.1943–44.1946–47.1947–48.1948–49.1949–50.*

* Provisional.

Savings      
42. Private savings168268832878
43. Revenue balances: General Government and local authorities6−6324192013
44. Depreciation allowances151722252729
45. Total funds utilized373611412775120
Expenditure.1938–39.1943–44.1946–47.1947–48.1948–49.1949–50.*
Investment      
46. Gross capital formation in New Zealand—      
    (a) Private2126581002764
    (b) General Government161021263239
    (c) Local authorities64671113
47. Not change in overseas assets−6−4+29−6+5+4
48. Total investment373611412775120

THE GOVERNMENT SECTOR.—The part played by Government, including in this sense local authorities as well as the General Government, in redirecting the expenditure of that portion of the national income transferred to it from the private sector by way of taxation and trading Department profits, becomes of increasing importance as the Government assumes wider responsibilities in the social and economic fields. The changes in these directions in New Zealand are quite apparent from an examination of the tables of General Government and local authority revenue and expenditure covering the years 1938–39, 1943–44, and 1946–47 to 1949–50, which are given later in this section.

General Government.—The revenue account of the General Government has been obtained by an analysis of the various accounts within the public account, and represents a consolidated statement of Government revenue and expenditure. In the case of trading Department operations, which are treated separately, profits only are brought into the main account as a revenue item. Expenditure has been taken “net” in all cases, sundry departmental receipts, &c., being set-off against departmental -expenditure. The account covers only revenue items, and therefore excludes capital receipts and payments of all kinds, thus accounting in part for the differences between the details given here and those given in the published statement of the public accounts in parliamentary paper B-1 [Pt. I]. In order that the differences between these two sets of figures may be appreciated a reconciliation table is given later.

Varying movements in different avenues of Government expenditure are apparent from the next table. Current expenditure on goods and services moved from £23,400,000 in 1938–39 to £154,700,000 in 1943–44, the peak war year, when expenditure on war and defence was at an unprecedented level. By 1949–50 expenditure on goods and services stood at £57,600,000, but while in actual amount this represented an increase of 146 per cent. over 1938–39, expressed as a percentage of gross national product the increase was only from 10 per cent. in the former year to 11 per cent. in the latter year. The large increases in transfers to private income by way of monetary social security benefits and interest on the public debt, from £12,400,000 in 1933–39 to £56,600,000 in 1949–50, and in subsidies from £600,000 to £14,600,000 over the same period are largely due to Government social legislation. They have undoubtedly been the principal cause of the substantial increase in taxation over the twelve years, but when their over-all purpose is realized, that of redistributing the national income among different income groups, the large increases shown are seen in their correct perspective principally as pure “transfer” items.

The balance of revenue over expenditure represents the excess after not expenditure on normal current Government activities has been allowed for. This balance is utilized for the carrying-out of necessary capital works and purchase of equipment, or the repayment of debt. Where there is an excess of expenditure over revenue, as was the case in 1943–44, the deficit must be met by a call on private savings in New Zealand, or a decrease in net overseas investments. It is equally true, of course, that if total Government expenditure in any one year, including expenditure on capital works, exceeds revenue for that year, this over-all deficit must be met in a similar way.

GENERAL GOVERNMENT—REVENUE ACCOUNT £(million)

Revenue.1938–39.1943–44.1946–47.1947–48.1948–49.1949–50.*

*Provisional.

† Employment promotion.

1. Taxation      
  (a) Direct—      
    Income-tax9.33.1332.136.649.048.4
    Social security taxation5.513.422.426.229.431.7
    National security tax 19.29.40.8  
    Land-tax1.11.00.90.90.91.0
    Death duties1.84.56.05.76.05.7
    Other0.10.20.1   
      Totals17.869.670.970.285.386.8
  (b) Indirect—      
    Sales tax3.612.715.615.914.114.8
    Customs and excise duty11.713.920.028.823.726.3
    Motor-vehicles taxation3.11.73.03.53.63.6
    Other1.62.93.63.93.74.1
      Totals20.031.242.252.145.148.8
2. Total, all taxation37.8100.8113.1122.3130.4135.6
3. Trading Income5.413.310.79.78.39.7
4. Less direct taxation paid by trading Departments−0.2−1.0−1.1−1.4−1.3−1.5
Totals5.212.39.68.37.08.2
5. Lump - sum payments from United Kingdom Government 3.05.05.0  
6. Total Revenue43.0116.1127.7135.6137.4143.8
7. Current Expenditure on Goods and Services      
  (a) General Administration2.21.83.65.07.99.3
  (b) Interest on General Government debt paid overseas6.86.64.74.73.32.7
  (c) Law and order0.80.81.11.11.31.8
  (d) Development of primary and secondary industries0.71.32.03.34.04.9
Social Services—      
  (e) Health0.81.42.12.42.83.4
  (f) Education4.24.87.08.49.211.0
  (g) Non-monetary social security benefits 4.56.27.07.98.5
  (h) Other social services3.30.40.40.40.40.6
  (i) Defence and war2.1131.211.611.98.08.2
  (j) Rehabilitation 0.42.52.82.42.1
  (k) Maintenance of public works and services2.51.54.65.35.15.1
    Totals23.4154.745.852.352.357.6
Transfers to Private Income      
8. Monetary social security benefits and pensions7.715.834.837.639.542.6
9. Interest on General Government debt paid in New Zealand4.79.012.913.113.314.0
Totals12.424.847.750.752.856.6
10. Transfers to Local Authorities      
  (a) Hospital Boards0.91.12.03.24.95.0
  (b) Other4.21.31.61.92.22.5
    Totals5.12.43.65.17.17.5
11. Subsidies      
  (a) Shipping, transport, and incidental 0.21.23.12.61.6
  (b) Coal production and distribution 0.51.71.51.92.9
  (c) Primary production0.40.81.21.40.30.5
  (d) Essential clothing and foodstuffs0.21.67.57.56.69.6
  (e) Miscellaneous  0.20.10.1 
    Totals0.63.111.813.611.514.6
12. Total expenditure41.5185.0108.9121.7123.7136.3
13. Balance of revenue over expenditure1.5−68.918.813.913.77.5
14. Total expenditure plus or minus revenue balances43.0116.1127.7135.6137.4143.8

Local Authorities.—The revenue account of local authorities is in all respects similar to that of the General Government and has been obtained by an analysis of the accounts of all local authorities, including Hospital Boards. The limitations in the scope of local-government activities as compared with those of the General Government does not call for a detailed analysis of expenditure items, and therefore current expenditure on goods and services by local authorities is shown as a single total in the table following relating to local authorities.

The comparatively unvarying nature of total local authority revenue and expenditure is shown by the small movements that have taken place in the figures over a period of twelve years, current expenditure on goods and services moving only from £8,400,000 in 1938–39 to £13,900,000 in 1949–50. Expressed as a percentage of gross national product, this represents an actual decrease from 4 per cent. to 3 per cent. over the period.

LOCAL AUTHORITIES—REVENUE ACCOUNT £(million)

Revenue.1938–39.1943–44.1946–47.1947–48.1948–49.1949–50.*

*Provisional.

15. Taxation      
    (a) Direct: Rates6.26.98.48.69.49.7
    (b) Indirect: Licence fees0.60.60.80.91.01.1
        Totals6.87.59.29.510.410.8
16. Trading income3.34.63.83.53.63.6
17. Grants from General Government5.12.43.65.17.17.5
18. Total Revenue15.214.516.618.121.121.9
Expenditure.1938–39.1943–44.1946–47.1947–48.1948–49.1949–50.*
19. Current expenditure on goods and services8.46.69.110.813.013.9
20. Interest on local-authority debt paid in New Zealand2.32.32.22.22.22.3
21. Total expenditure10.78.911.313.015.216.2
22. Balance of revenue over expenditure4.55.65.35.15.95.7
23. Total expenditure (plus revenue balances)15.214.516.618.121.121.9

RECONCILIATION BETWEEN CONSOLIDATED FUND SURPLUS AND BALANCE OF REVENUE AVAILABLE FOR CAPITAL FORMATION PER NATIONAL INCOME ACCOUNTS £(million)

—.1933–39.1943–44.1946–47.1947–48.1948–49.1949–50.*

* Provisional.

24. Balance of revenue over current expenditure per national income accounts+1.5−68.9+18.8+13.9+13.7+7.5
Less      
25. Transfers to other accounts—      
Main Highways Account−2.8−1.6−2.8   
War Expenses Account −7.5−3.0−2.1−2.0 
Social Security Fund −4.1−18.0−16.0−15.0−12.0
26. Revenue receipts other accounts—      
Employment Promotion Fund−5.5     
Social Security Fund −13.4−22.5−26.3−29.4−31.8
Reserve Fund −0.1    
War Expenses Account −45.5−11.1−3.8−1.1−0.6
27. Amortization of debt charge to Consolidated Fund−1.8−3.2−4.7−8.6−9.2−5.4
28. Capital expenditure charged to Consolidated Fund−0.1−0.1−2.1−1.4−1.5−1.8
29. Transfer to Air Defence Fund    −1.6−1.3
30. Recoveries from farm stabilization accounts reallocated −1.2    
31. Gratuity, &c., payments reallocated +6.6−4.1−1.0−1.7+0.1
32. Lump sum payments from United Kingdom Government Plus −30−5.0−5.0  
33. Non - capital payments from other accounts—      
Employment Promotion Fund+6.4     
Social Security Fund +17.6+36.8+40.4+43.0+46.4
Main Highways Account+2.2+1.7+2.6   
War Expenses Account +128.8+22.7+12.2+5.6+2.6
Reserve Fund    +0.5 
34. Transfers to local authorities from Public Works Account+1.4+0.9+1.1+1.4+1.8+ 1.6
Adjustment for trading income      
36. Profits of trading Departments−5.4−13.3−10.7−9.7−8.3−9.6
36. Plus transfers to Consolidated Fund+4.9+8.5+6.6+7.8+7.8+8.6
37. Surplus, Consolidated Fund, Ordinary Revenue Account (Budget surplus on old basis)0.82.24.61.82.64.3
38. Less—      
Social Security Fund deficit−2.6
War Expenses Account deficit−1.0
Borrowing from Reserve Bank−26.0
Budget deficit, 1949–5025.3

The reconciliation given indicates the fundamental differences between the analysis of the public accounts made for national income purposes and that published in parliamentary paper B-1 [Pt. I].

Firstly, it has been necessary to bring into account revenue and expenditure received and incurred by the Government other than that recorded within the limited confines of the Consolidated Fund. This is done by including details of the Employment Promotion Fund, Social Security Fund, War Expenses Account, Main Highways Account, and Reserve Fund Account for the years in which they were operative.

Secondly, adjustments have been made to Consolidated Fund revenue and expenditure. Capitol receipts and payments (purchase or construction of capital assets and amortization of debt) have been eliminated. Actual profits of trading Departments earned in a given year are brought into account and transfers by these to the Consolidated Fund deducted. This ensures that only profits for the year in question are included. Transfers to the Consolidated Fund do not necessarily relate to profits earned in the year in which the transfer is made, nor do they cover total profits of all trading departments.

In the case of gratuity, &c., payments, and recoveries of subsidies from primary produce stabilization accounts, treatment for national income purposes necessitated the reallocation of these items over a period other than that in which the actual payment was made. These amendments are shown in the reconciliation. The consolidated balance of total government revenue and expenditure represents the balance, after payment for all current items, utilized for capital expenditure of all kinds both by Government administrative Departments and Government trading undertakings. Because of the strictly “cash” basis on which the public accounts are constructed, however, no allowance has been made for depreciation on the national assets, other than those administered by the trading Departments, before arriving at the revenue balance. To this extent, therefore, it represents an overstatement of the true balance on current account.

The effect of the reconciliation is to convert the balance of revenue over expenditure, as per the national income accounts, back to the more limited Consolidated Fund surplus. The latter, up to 1948–49, had been the traditional Budget surplus. Due to the wider basis adopted for calculation of the Budget surplus in 1949–50, further adjustments to the Consolidated Fund surplus are included for that year only.

THE DISTRIBUTION OF PRIVATE INCOME.—A detailed survey of private income and outlay has already been given (refer table on page 668) for the years 1938–39, 1943–44, and 1946–47 to 1949–50. An analysis of private income, in less comprehensive form, is given below for each of the twelve years 1938–39 to 1949–50 (inclusive). Group totals are shown in value form, as percentages of private income, and are expressed as index numbers on base 1938–39 (= 100).

PRIVATE INCOME

1938–39.1939–40.1940–41.1941–42.1942–43.1943–44.1944–45.1945–46.1946–47.1947–48.1948–49.1949–50.*

* Provisional.

Salary and wage payments (1)—            
£(m.)111.1110.6117.7120.6126.7140.4147.0161.8186.3210.1226.7252.6
Per cent.55.550.849.546.542.642.243.144.447.147.249.148.7
Index No.100100106109114126132146168189204227
Pay and allowances of Armed Forces (2)—            
£(m.)0.93.116.726.547.157.948.340.08.26.44.34.6
Per cent.0.51.47.010.215.817.414.211.02.11.40.90.9
Social security benefits and pensions (22)—            
£(m.)7.711.512.512.914.415.817.620.934.837.639.542.6
Per cent.3.95.35.35.04.84.75.25.78.88.48.68.2
Index No.100149162168187205229271452488513553
Rental value of owner-occupied houses (3)—            
£(m.)6.26.77.27.77.98.38.89.19.39.610.511.2
Percent.3.13.13.03.02.72.52.62.52.42.22.32.2
Index No.100108116124127134142147150155169181
Other personal income (excluding company dividends) (4)—£(m.)54.360.859.763.768.473.681.090.7108.7128.7132.2154.1
Per cent.27.127.925.124.623.022.123.824.927.528.928.729.7
Index No.100112110117126136149167200237243284
Company income (before distribution) (5)—            
£(m.)19.925.024.028.033.236.738.242.048.353.048.253.2
Per cent.9.911.510.110.811.211.011.211.512.211.910.410.3
Index No.100126121141167184192211243266242267
Private income (26)—            
£(m.)200.1217.7237.8259.4297.7332.8340.9364.5395.7445.5461.4518.3
Per cent.100.0100.0100.0100.0100.0100.0100.0100.0100.0100.0100.0100.0
Index No.100109119130149166170182198223231259

NOTE.—The numbers in parentheses after the items refer to items in the tables given on pages 667–669.

The distribution of private income, as indicated by this table, is affected to a considerable extent by the movement in the item “pay and allowances of the Armed Forces” over the period. In 1943–44, the peak war year, 17.4 per cent. of total private income was received in this form. Its effects on aggregate “salary and wage payments” of civilians, which decreased as a percentage of private income, from 55.5 per cent. in 1938–39 to 42.2 per cent. in 1943–44, and “other personal income,” which decreased similarly from 27.1 per cent. to 22.1 per cent. over the same years, can be clearly seen. It is usual to regard pay and allowances of the Armed Forces as similar to salary and wage payments, but if this is done it has the effect of temporarily inflating “salary and wage payments” at the expense of “other personal income,” since many Armed Forces personnel are not salary and wage-earners as civilians. This can lead to, misleading results where a series of years covering a war and post-war period is being considered, as in the present case, and consequently care must be used in interpreting the figures shown.

Another item which is playing an increasingly important part in altering the distribution of private income is “social security benefits and pensions,” which as a percentage of private income increased from 3.9 per cent. in 1938–39 to 8.2 per cent. in 1949–50. If those payments are considered as supplements to normal earned incomes, then they would have the effect of lessening the drop shown in salary and wage payments (including pay and allowances of Armed Forces), from 56 per cent. of private income in 1938–39 to 49.6 per cent. in 1949–50, a major portion of social security benefits and pensions being received by this group. That is, however, going past the present analysis of private income, which is a study of the distribution of “factor incomes” rather than the distribution of incomes received by the various income earning groups—i.e., “salary and wage payments” are here being considered, not “income of salary and wage-earners.”

Company incomes, which, until 1947–48, had shown the greatest percentage increase over 1938–39, showed a fall from £53.0(m.) in 1947–48 to £48–2(m.) in 1948–49. The 1949–39 estimate indicates that the 1947–48 level has been recovered, with the index moving to 267 from the base of 100 in 1938–39. Meanwhile, other personal incomes have risen sharply, due in the main to a very large increase in farming income, reaching a figure of £154.1(m.) in 1949–50, an increase of 184 per cent. over the twelve-year period as compared with 167 per cent. for companies and 130 per cent. for salary and wage payments (including pay and allowances of the Armed Forces).

Private income itself has increased from £200,100,000 in 1938–39 to £518,300,000 in 1949–50 (159 per cent.).

The Effects of Taxation on the Distribution of Private Income.—The redistributive effects of taxation on private income, especially by the use of steeply progressive taxation rates, can be very great. Before examining the effects on New Zealand private income, however, it is of value to compare total taxation with private income and obtain some idea of the extent to which private income is affected by this transfer to the State.

The following table shows total taxation expressed as a percentage of private income for each of the years 1938–39 to 1949–50.

PRIVATE INCOME AND TOTAL TAXATION £(million)

1938–39.1939–40.1940–41.1941–42.1942–43.1943–44.1944–45.1945–46.1946–47.1947–48.1948.49.1949–50.*

* Provisional.

† Excluding direct taxes paid by Government trading Departments.

Private income (26)200.1217.7237.8259.4297.7332.8340.9364.5395.7445.5461.4518.3
Direct taxation (28)23.830.545.651.466.475.581.285.078.277.493.495.1
Indirect taxation (10)20.621.022.323.227.931.834.037.343.053.046.149.8
Less subsidies (11)−0.6−0.5−1.6−2.7−3.3−3.1−4.6−6.6−11.8−13.6−11.5−14.6
Total taxation less sub-sidies43.851.066.371.991.0104.2110.6115.7109.4116.8128.0130.3
Total taxation as a percentage of private income21.923.427.927.730.631.332.431.727.626.227.725.1

NOTE.—The numbers in parentheses after the items, refer to items in the tables given on pages 667–669.

Subsidies in this table are treated as negative indirect taxes and deducted from total taxation. Taxation as a percentage of private income increased steadily from 21.9 per cent. in 1938–39 to 324 per cent. in 1944–45, falling to 25.1 per cent. in 1949–50. Recent movements in the trend can be very largely attributed to the fact that total taxation in any one year represents actual taxation receipts for that year. In the case of certain taxes—e.g., income-tax—receipts for one year are in respect of income earned in the previous year. To this extent the comparison is between income earned and tax paid from that income, and not tax paid in respect of that income. Thus in 1949–50, when private income shows a considerable increase as compared with 1948–49, the increase in taxation (mainly assessed on 1948–49 incomes) is compared with a proportionately greater increased private income total. Company income, a major source of taxation, showed a fall in 1948–49.

Included in both income and taxation fibres in the previous table are certain transfer payments from the private sector to Government as taxation and from the Government back to the private sector as interest on the public debt, social security benefits, and pensions. Taxation raised for such purposes is not a true indication of the levy made on the private sector as a whole for its contribution to the cost of the provision of Government services, and therefore in the following table such transfer items have been eliminated both from taxation and from incomes, the remainders then being compared to give the true picture of the real contribution made to the State from private income.

The payment of non-monetary social security benefits also has the effect of disturbing the comparison between taxation and private income in the years before and after their introduction. The aggregate of private income before taxation is not affected by the change, the only difference being that former direct payments for services rendered by doctors, &c., are now paid by the Government from the proceeds of taxation. For the purposes of the following table payments of this nature, by Government, are deducted from total taxation before obtaining a true comparison with total private income.

PRIVATE INCOME AND TOTAL, TAXATION (EXCLUDING TRANSFER INCOMES AND PAYMENTS)

£(million)

1938–39.1939–40.1940–41.1941–42.1942–43.1943–44.1944–45.1945–46.1946–47.1947–48.1948–49.1949–50.*

* Provisional.

† Excluding mental hospital benefits.

Private income before tax (26)200.1217.7237.8259.4297.7332.8340.9364.5395.7445.5461.4518.3
Less transfer payments (8 + 22)−14.7−19.0−20.3−21.3−23.8−27.1−30.5−34.7−49.9−52.9−55.0−58.9
Private income (excluding transfer payments)185.4198.7217.5238.1273.9305.7310.4329.8345.8392.6406.4459.4
Total taxation (less subsidies)43.851.066.371.991.0104.2110.6115.7109.4116.8128.0130.3
Less            
Transfer payments (as above)−14.7−19.0−20.3−21.3−23.8−27.1−30.5−34.7−49.9−52.9−65.0−58.9
Non-monetary social security benefits −0.9−1.6−2.3−3.5−4.5−5.0−5.6−6.2−7.0−7.9−8.5
Total taxation (excluding transfer payments and subsidies)29.131.144.448.363.772.675.175.453.356.965.162.9
Total taxation as a percentage of private income (excluding transfer payments)15.715.720.420.323.323.724.222.915.414.516.013.7

NOTE.—The numbers in parentheses after the items, refer to items in the tables given on pages 667–669.

The incidence of direct taxation on the various “factor income” groups comprising private income is shown in the next table. The balance in each case represents disposable income and the deduction of total taxation from private income gives the concept of private disposable income.

PRIVATE INCOME AND INCIDENCE OF DIRECT TAXATION

£(million)

1938–39.1939–40.1940–411941–42.1942–43.1943–44.1944–45.1945–46.1946–1947.1947–48.1948–49.1949–50.*

*Provisional.

† Excludes direct taxes on Government trading profits.

Salary and wage payments (1)111.1110.6117.7120.6126.7140.4147.0161.8186.3210.1226.7252.6
  Less direct taxes4.98.012.515.619.523.424.326.623.823.625.928.2
    Net totals 106.2102.6105.2105.0107.2117.0122.7162.5186.5200.8224.4
Pay and allowances of Armed Forces (2)0.93.116.726.547.157.948.340.08.26.44.34.6
  Less direct taxes  0.81.13.23.53.83.31.20.30.50.5
    Net totals0.93.115.925.443.954.444.536.77.06.13.84.1
Social security benefits and pensions (22)7.711.512.512.911.415.817.620.934.837.639.542.6
Other personal income (including rental value of owner-occupied houses) (3 + 4)60.567.466.971.476.381.989.899.8118.0138.3142.7165.3
  Less direct taxes11.813.318.820.724.125.926.429.629.231.036.637.4
    Net totals48.754.148.150.752.256.063.470.288.8107.3106.1127.9
Company income (before distribution) (5)19.925.024.028.033.236.738.242.048.353.048.253.2
  Less direct taxes7.19.213.514.019.622.726.625.524.022.530.429.0
    Net totals12.815.810.514.013.611.011.616.524.330.517.824.2
Private income (26)200.1217.7237.8259.4297.7332.8340.9364.5395.7445.5161.4518.3
  Less direct taxes (28)23.830.545.651.466.475.581.285.078.277.493.495.1
Private disposable income176.3187.2192.2208.0231.3257.3259.7279.5317.5368.1368.0423.2

NOTE.—The numbers in parentheses after the items, refer to items in the tables given on pages 667–669.

The effect of direct taxation in altering the distribution of the factor incomes is shown quite clearly by a comparison of the table given next with the table on page 674. Both show similar detail, the table presented earlier giving private income before tax, and the table following after tax, expressed in value form, as percentages of total private disposable income, and as index numbers, on bast; 1938–39 (= 100). For the purposes of the latter table, it is necessary to group “rental value of owner-occupied houses” with “other personal income.”

PRIVATE DISPOSABLE INCOME

1938–39.1939–40.1940–41.1941–42.1942–43.1943–44.1944–45.1945–46.1946–47.1947–48.1948–49.1949–50.*

* Provisional.

Salary and wage payments—            
  £(m.)106.2102.6105.2105.0107.2117.0122.7135.2162.5186.5200.8224.4
  Per cent.60.254.854.750.546.345.547.248.451.250.754.653.0
  Index No.100979999101110116127153176189211
Pay and allowances of Armed Forces—            
  £(m.)0.93.115.925.443.954.444.536.77.06.13.84.1
  Per cent.0.51.78.312.219.021.117.113.12.21.71.010
Social security benefits and pensions—            
  £(m.)7.711.512.512.914.415.817.620.934.837.639.542.6
  Per cent.4.46.16.56.26.26.16.87.511.010.210.710.1
  Index No.100149162168187205229271452488513553
Other personal income (including rental value of owner-occupied houses)—            
  £(m.)48.754.148.150.752.256.063.470.288.8107.3106.1127.9
  Per cent.27.628.925.024.422.621.824.425.128.029.128.830.2
  Index No.10011199104107115130144182220218263
Company income (before distribution)—            
  £(m.)12.815.810.514.013.614.011.616.524.330.517.824.2
  Per cent.7.38.45.56.75.95.44.55.97.78.34.85.7
  Index No.1001238210910610991129190238139189
Private disposable income—            
  £(m.)176.3187.2192.2208.0231.3257.3259.7279.5317.5368.1368.0423.2
  Per cent.100.0100.0100.0100.0100.0100.0100.0100.0100.0100.0100.0100.0
  Index No.100106109118131146147159180209209240

NOTE.—The value totals given in this table are those derived in the table given on page 677.

Whereas “salary and wage payments” (including pay and allowances of the Armed Forces) formed 49.6 per cent. of private income before tax in 1949–50, “other personal income” (including rental value of owner-occupied houses) 31.9 percent., and “company income” 10.3 per cent., these proportions changed to 54.0 per cent., 30.2 per cent., and 5.7 per cent. respectively after deduction of direct taxes, and expressed as a percentage of private disposal le income. A factor of some importance which affects the comparability of these figures is the introduction of non-monetary social security benefits over the period. Taxation taken to pay for these benefits reduces private disposable income, but at the same time this income is indirectly increased by a reduction in private expenditure on the items covered by the benefits. It is not feasible to make any allowance for this factor at this point, but it should he borne in mind.

Chapter 36. SECTION 36—INCOMES AND INCOME-TAX

INCOMES AND TAX ASSESSMENT.—A system of annual statistics from the particulars on the income-tax returns was inaugurated in 1923 and was continued up to and including the tax-year 1931–32, but was then discontinued for reasons of economy. The compilation was later resumed, commencing with the tax-year 1934–35, but following the 1941–42 tabulation, it was again found necessary to suspend activities in this connection owing to shortages of staff, &c., arising from war conditions. The compilation of these statistics has again been resumed commencing with the tax assessment year 1946–47.

For the assessment year 1948–49, the compilation of the statistics was altered from the system of full enumeration, which had been previously used, to one based on a sample of approximately 10 per cent. of the total number of assessments. Provision was made at the same time to obtain a complete coverage of all incomes of £2,500 and over. The selection of the sample was governed principally by considerations of administrative convenience. All assessments issued to persons whose surnames commenced with one of the three chosen letters of the alphabet were included in the sample. It had previously been determined that the assessments included in these letters which, when aggregated, amounted to approximately 10 per cent. of the total number, were a reasonably representative section of the whole as far as incomes under £2,500 were concerned. Three letters of medium size in regard to numbers of assessments were adopted in preference to taking the results of one (or two) of the letters having larger numbers of assessments in order to spread as evenly as practicable the work of preparing the assessments for the statistical compilation.

Other than the provision for a full enumeration of all incomes of £2,500 and over, no direct attempt was made to stratify the sample by size of income. While it would have been desirable from some angles to have increased the proportional representation of the sample as the income groups ascended the frequency distribution scale, this would have impaired the administrative simplicity of the scheme of sampling adopted. Some degree of stratification was achieved, however, by using an over-all 10 per cent. sample. The numbers yielded by the 10–per-cent. sample are, in the lower income groups, more than are actually necessary to give reliable results.

The use of the sampling method explains the “rounded-off” figures which are shown for the 1948–49 statistics in the tables which follow. In some cases, this process of rounding-off results in the total figure given disagreeing slightly with the aggregate of the component items.

The figures are given to the nearest hundred for numbers of assessments, &c., and to the nearest ten thousand for the amounts columns. These units were adopted to lessen the difficulties associated with the rounding-off of the figures. It is not intended to imply that the estimates are regarded as having a degree of accuracy as high as the units in which the results are expressed. The accuracy of the estimates appears to be such that the “thousands” of the numbers of assessments, and the “hundred thousands” of amounts are approximately correct.

Information concerning the system of income-tax in New Zealand is given earlier under the heading of “Taxation” (see pp. 486–491). The statistical data relating to income-tax given in this section more properly belong to the Taxation subsection referred to, but it is considered preferable to treat the figures relating to the incidence of tax with those showing the distribution of the incomes on which the tax is assessed.

It should be explained that the incomes returned in any tax-year are those for the preceding income-year; thus, the statistics for the tax-year 1948–49 relate to incomes received during the year 1947–48, which, in general, may be taken as the twelve months ended 31st March, 1948.

The returns from which these statistics are compiled are required from all taxpayers. In addition, whether taxpayers or not, all companies and public or local authorities engaged in any profession, trade, manufacture, or undertaking curried on for pecuniary profit, irrespective of the amount of income, derived, and all persons in receipt of incomes of £200 or over, are required to furnish returns. The statistical compilation is, however, limited to taxpayers and to persons whose assessable incomes amount to £200 or over.

The reference to persons whoso assessable incomes are £200 or over should not be interpreted as moaning that there is a complete coverage of incomes over that amount. Certain types of non-assessable income are not included in the returns, and are therefore completely omitted from these statistics. The coverage of the returns is also incomplete in one other respect. It is known that a number of persons with assessable incomes of between £200 and £1500 fail to furnish returns. The first £200 of assessable income is exempted, and the great majority of missing returns for incomes over £200 represent persons who are known to be entitled to other exemptions which would bring them into the non-taxpaying category.

SUMMARY OF INCOMES, EXEMPTIONS, AND TAX.—The following table briefly summarizes the main items of information for each of the last five tax-years available.

Item.1940–41.1941–42.1946–47.1947–48.1948–49.

* Excluding company income, where distinction between earned and unearned income is not made for taxation purposes.

† Proprietary income is excluded from assessable Income and included in returnable income.

Number of assessments306,099323,379401,025473,466531,382
Number of taxpayers216,333235,721319,718387,724369,382
 £(000)£(000)£(000)£(000)£(000)
Earned income*102,652111,456171,903209,342257,530
Assessable income138,861149,597221,866268,760324,317
Returnable income146,332157,519231,026279,768339,786
Exemptions—     
  Personal58,79161,65979,88094,398106,040
  Other19,35221,64937,96544,50951,030
Taxable income60,71866,289104,021129,853167,247
Tax assessed18,81520,12431,79938,70444,303

Probably the most striking feature disclosed by these figures is the cumulative effect of the large increases shown in each individual year. A strict comparison is, however, not possible, as changes in compilation practice and numerous amendments in income-tax law have affected the comparability of one year's figures with those of another. The inclusion, commencing with the tax-year 1940–41, of all farming incomes in excess of £200 has had a considerable effect on the statistics.

CLASSES OF TAXPAYERS.—“Individuals” comprise all assessments for individual persons, and include estates of deceased persons. Partnership returns are ignored in the compilation, as the individual shares of partnership income are included in the individual tax assessments.

The term “companies” not only covers companies incorporated under the Companies Act, 1933, and other Acts relating to the formation of companies, but also includes local and public authorities, associations (incorporated or unincorporated), and aggregations of individuals (other than partnerships) which form separate and distinct entities for income-tax purposes.

Non-resident traders are not now separately classified, but are included either as individuals or as companies.

A classification on the basis of class is given in the following table for each of the last three available tax-years.

Class.Number of Assessments.Number of Taxpayers.Aggregate Assessable Income.*
1946–47.1947–48.1948–49.1946–47.1947–48.1948–49.1946–47.1947–48.1948–49.

* Excluding proprietary income.

       £(000)£(000)£(000)
Individuals392,233463,208518,900310,926377,466356,900180,380219,211268,680
Companies8,79210,25812,4828,79210,25812,48241,48649,54955,637
    Totals401,025473,466531,382319,718387,724369,382221,866268,760324,317

The numbers of assessments for individuals in the 1948–49 tax-year covered 455,000 males and 75,400 females, a total of 530,400. The figures quoted for males and females include in their respective sexes the number of husbands and wives who were issued with combined assessments under the provisions relating to the aggregation of the incomes of husband and wife. In the statistical tables, such combined assessments are counted as one assessment only.

The number of males included in assessments was 52.7 per cent. of the male population (excluding Maoris) and 49.5 per cent. (including Maoris). Corresponding figures for females were 8.2 per cent. and 8.7 per cent. respectively.

Amount of Income.—The broad principle adopted in calculating the assessable income is that any expenditure or loss exclusively incurred in the production of the assessable income for any year may be deducted from the total income from any assessable source for that year. Depreciation is allowed, varying rates for different classes of assets being fixed. Where the operations of a source of income which would be assessable for income-tax have resulted in a loss for the year, the loss may be set off against assessable profits from other sources (if any) or, in default thereof, may be set off against assessable profits in the three following years. Capital profits are not assessable and capital losses are not deductible.

Incomes of Individuals: Assessable Income. —Summarized figures according to amount of assessable income of individuals are now given for the last three tax-years available.

Amount of Assessable Income.Number of Assessments.Aggregate Assessable Income.*
1946–47.1947–48.1948–49.1946–47.1947–48.1948–49.

* Excluding proprietary income.

££  £(000)£(000)£(000)
Under 30093,87799,90284,40023,45425,19021,380
300–399117,839145,306137,80041,19050,80748,490
400–49982,25396,866125,60036,42142,80955,630
500–59940,27747,65165,50021,80625,81135,560
600–69919,48623,73534,30012,50915,26022,040
700–79910,78713,37519,2008,0299,96114,280
800–8996,8288,50511,7005,7697,1839,880
900–9994,2925,5628,2004,0555,2587,750
1,000–1,99913,50517,90125,70017,89423,67434,020
2,000–2,9992,1312,9914,3005,0557,10910,300
3,000–3,9995748501,3031,9612,8974,429
4,000–4,9991992944508821,3011,995
5,000–9,9991652363841,0691,4672,440
10,000 and over203435287486486
Totals392,233463,208518,900180,380219,211268,680

Of the 518,900 individual assessments covered in 1948—49, 16.3 per cent. returned assessable income of less than £300, 50.8 per cent. from £300 to £499, 26.8 per cent. from £500 to £899, 4.9 per cent. from £1,000 to £1,999, and 1.2 per cent. from £2,000 upwards.

Of the assessable income of individuals 467 per cent. came within categories of under £500; 33.3 per cent. in categories of £500–£999; and 12.7 per cent. in categories of £1,000–£l,999; 6.2 per cent. in categories of £2,000–£4,999; and 1.1 per cent. in categories of £5,000 and over.

Assessable Earned Income.—Earned income is defined as all income derived from any source by a taxpayer (not being a company or a public or local authority) by reason of his personal exertions. Pensions and superannuation are regarded as earned income. It should be noted, however, that war pensions and social security benefits (including the family benefit) are not taxable, and are not required to be included in income-tax returns. Earned income was, of course, not subject to the surtax of 33⅓ per cent. on standard rates which was payable on unearned income of individuals but not of companies up to and including the 1949–50 tax year.

The next table shows the amount of earned income included in the total assessable income of individuals for the various categories according to the size of assessable income.

Amount of Assessable Income.Assessable Earned Income.*Proportion of Assessable Income.
1946–47.1947–48.1948–49.1946–47.1947–48.1948–49.

* Excluding proprietary income.

£ ££(000)£(000)£(000)Per Cent.Per Cent.Per Cent.
Under 30022,22523,85120,19094.894.794.4
300–39939,96449,37346,98097.097.296.9
400–49935,42641,63954,36097.397.397.7
500–59921,06024,92034,51096.696.597.0
600–69911,89714,47621,22095.194.996.3
700–7997,5389,50613,59093.995.495.2
800–8995,3666,7639,38093.094.194.9
900–9993,7484,8967,35092.493.194.8
1,000–1,99916,30621,82432,03091.192.294.1
2,000–2,9994,5946,4799,43090.991.191.5
3,000–3,9991,7422,6214,07788.890.592.0
4,000–4,9997921,1791,79289.890.689.8
5,000–9,9999681,3482,19190.691.989.8
10,000 and over27646743496.296.189.3
    Totals171,903209,342257,53095.395.595.9

Generally speaking, the proportion of earned income falls as the size of the assessable income increases, although exceptions to the rule will be observed.

The necessity for distinguishing between earned and unearned income, although relevant to the figures shown for the years quoted in the preceding table, has now disappeared with the passing of the Land and Income Tax Amendment Act, 1950, which abolished the surtax of 33⅓ per cent. referred to earlier.

Proprietary Income.—The income-tax year 1940–41 saw the introduction of this classification of income. There are two factors which must be present before the income of a company can be proprietary income in the hands of the shareholder. The first is that the control must be in the hands of not more than four persons. If this is the case, then the company is a proprietary company. The second factor is that a shareholder of a proprietary company is not a proprietary shareholder unless he is entitled to receive not less than one-fifth of the company's income. Only in the case of a proprietary shareholder in a proprietary company is the shareholder's proportion of the company's income transferred to the shareholder's assessment. A proprietary shareholder may be an estate or another company.

Where proprietary income is transferred to the shareholder's assessment, that income becomes assessable income in the hands of the shareholder. The tax is assessed on the taxable balance (including proprietary income), provision being made for a credit in respect of tax already paid on that income by the company. In the statistics such proprietary income is included only in the returnable income. It has been excluded from the assessable earned, the assessable, and the taxable incomes.

Returnable Income.—In addition to the proprietary income which is included in returnable income, certain classes of non-assessable income are taken into account in determining the amount of tax, &c. Returnable income is obtained by adding to the assessable income the amount of any non-assessable income of the classes used for rate determination. The classes concerned mainly comprise dividends from companies trading in New Zealand, interest on New Zealand Government securities issued free of tax, and interest on company debentures issued free of tax or with a floating rate of interest.

These classes constitute the greater part of any non-assessable income received by persons whoso returns are included in the statistics.

The following table gives particulars of the number of assessments and total returnable income of individuals according to size of income.

Amount of Returnable Income.Number of Assessments.Returnable Income.*
1946–47.1947–48.1948–49.1946–47.1947–48.1948–49.

* Including proprietary income.

£ £  £(000)£(000)£(000) 
Under 30092,51898,59682,80023,12824,87721,000
300–399117,271144,559137,00040,99050,55248,210
400–49981,84896,335124,80036,23842,58455,250
500–59940,13047,27164,90021,73125,61235,260
600–69919,49523,70034,40012,51815,24122,100
700–79910,75313,30718,7008,0029,91313,900
800–8996,8368,65712,0005,7757,31510,150
900–9994,4725,6558,2004,2275,3477,750
1,000–1,99914,53719,12527,00019,43225,53535,950
2,000–2,9992,7333,7315,7006,6188,92913,440
3,000–3,9998881,2161,7963,0414,1636,147
4,000–4,9993424947261,5112,1903,212
5,000–9,9993244787502,1023,0394,847
10,000 and over56841008051,3301,558
    Totals392,233463,208518,900186,116226,626278,780

From a comparison of the foregoing table with that based on the amount of “assessable” income, it will be observed that the larger income categories are most affected by the inclusion of non-assessable and proprietary income. For the assessment year 1948–49 the aggregate of non-assessable, &c., income was £10,100,000. With the exception of £1,410,000 received by those having returnable incomes of less than £1,000, this amount was shared by the medium and higher income groups. The general tendency is for the proportion of non-assessable, &c., income to rise as the total income rises.

Aggregation of Incomes: Husband and Wife.—A further innovation in income-tax procedure was introduced in the tax-year 1940–41 by the aggregation of incomes of husband and wife, if (a) they are living together, and (b) the returnable income in each case exceeds £200. The income of the wife is deemed to be the income of the husband, and an aggregate assessment is made in the name of the husband. In such cases a personal exemption of £200 is allowable for the wife, in addition to that allowable to the husband. Provision is made for separate assessments if written application is made by either the husband or wife before an aggregate assessment has been made. The total tax payable under the separate aggregated assessments is that payable under the combined assessment, but apportioned between husband and wife according to their respective taxable incomes.

The following table shows the numbers of “aggregate” assessments for the three latest assessment years, according to the amount of assessable income. In this, as in the other tables, an “aggregate” assessment is counted as one assessment only. Each assessment, however, includes two returns of income.

Amount of Assessable Income.Number of Assessments.
1946–47.1947–48.1948–49.
£    £   
Under 4001014 
400–499232250100
500–5991,1961,3391,000
600–6991,7872,2442,600
700–7991,3251,5712,300
800–8997609401,500
900–999428519900
1,000–1,9991,1811,5542,200
2,000–2,999240341500
3,000–3,99979123186
4,000–4,999293885
5,000 and over353079
    Totals7,3028,96311,500

It should be noted that the above table includes only those cases where there is no election by the husband or wife to receive separate assessments at the rate of tax appropriate to the aggregated taxable incomes. This right of election is exercised in numerous eases, but the actual number is not available from these statistics.

Sources of Income—In the compilation of the statistics for the years prior to 1948–49 a distinction was made as to the source from which assessable Income was derived, incomes being divided into ten groups according to source as follows: (i) Salary or wages; (ii) following professional occupation on own account; (iii) commerce, trade, or business; (iv) industry or manufacture; (v) farming; (vi) provision of transport or communication; (vii) building or construction; (viii) mining or extraction; (ix) investments, and the like; (x) provision of or engaging in entertainment.

The question of revising the “source” code has been considered, and for future assessment years the data will probably be classified according to a combined occupational and industries code. For 1948–49, estimates from the sample were prepared only for the five principal sources, and for a residual source which embraces those sources not now shown separately. The next table gives the principal figures divided according to the 1948–49 modified source arrangement.

Actual figures as to the amount of income derived from the various sources are not available on account of the fact that, in a considerable proportion of cases, income is obtained from more than one source. The rule followed in such cases in compiling the statistics is to include the whole income under the principal source from which assessable income is derived. As an indication of the extent to which the figures are affected, source salary or wages includes £2,820,000 unearned assessable-income, and source investments and the like includes £610,000 assessable earned income.

The following table shows the distribution of incomes of individuals from the various sources, the average assessable and returnable incomes, and also the proportion of assessable income to returnable income for the tax-year 1948–49.

Source of Assessable Income.Number of Assessments.Assessable Income.*Returnable Income.Average Assessable Income.Average Returnable Income.Proportion of Assessable to Returnable Income.

* Excluding proprietary Income.

  £(000)£(000)££Per Cent.
Salary or wages405,200179,450185,63044345896.7
Professional occupation on own account5,9007,4607,9101,2721,34894.3
Commerce, trade, or business29,50022,44023,51076179795.4
Farming59,20047,76048,29080681598.9
Investments and the like12,1006,4107,91052865181.0
Remainder7,0005,1605,53073979193.3
    Totals518,900268,680278,78051853796.4

Exemptions.—In the case of individuals, certain statutory deductions are made from the assessable income, and income-tax is paid on the balance. Absentees are not usually entitled to the benefit of exemptions other than the personal exemption of £200. The exemptions in force during the tax-year 1948–49 were—

  1. A personal exemption of £200.

  2. An exemption of £100 in respect of a dependent husband or wife whose personal income did not exceed £50. The exemption was diminished by £2 for every £1 of the wife's income in excess of £50.

  3. An exemption not exceeding £100 in respect of a housekeeper employed by a widow, widower, or divorced person to have the care and control of any child or children.

  4. An exemption for contributions not exceeding £50 towards the support of a relative by blood, marriage, or adoption who was dependent on the taxpayer. Children of the taxpayer were included in this definition. The exemption was not allowed if the relative was in receipt of a monetary benefit (other than a family benefit for children) from the Social Security Fund.

  5. Life-assurance premiums, National Provident Fund, superannuation, and similar contributions. An exemption was allowed up to a maximum of 15 per cent. of assessable income or £150, whichever amount was the less.

A tax rebate of £26 was allowed in lieu of the exemption if the exemption for a wife, a housekeeper, or a dependent relative, would reduce the amount of tax payable by more than £26 in respect of any such exemption. If the income was wholly earned income, the tax rebate in lieu of the exemption for a wife operated when the taxable income (the assessable income less any exemptions, including the wife's exemption) exceeded £808. In the case of a relative, the tax rebate came into effect when the taxable earned income exceeded £2,658. In both these cases it was assumed that the full exemption of £100 or £50, as the case might he, would apply.

In the statistics the exemptions were applied in the order in which they appear in the foregoing list. For example, a married man with two children was entitled to the following exemptions: Personal, £200; wife, £100; relatives £100; and (say) £15 life-assurance premiums, &c. The total exemption was thus £415. Assuming that his assessable income was £375, the exemptions were reduced to a total sufficient to make the taxable balance “nil” and were recorded as personal, £200; wife, £100; and relatives, £75.

The next table shows the aggregate amounts of exemptions allowed in the tax-year 1948–49.

Amount of Assessable Income.Personal.Wife, Housekeeper.Children and Relatives.Life Assurance, &c.Total.
£ ££(000)£(000)£(000)£(000)£(000)
Under 30016,8709508025018,150
300–39927,5506,2202,36075036,870
400–49925,1407,9505,4101,19039,690
500–59913,2904,7803,9401,08023,100
600–6997,4002,4402,14074012,710
700–7994,3001,2801,1805007,260
800–8992,6308007603704,570
900–9991,8205205002903,130
1,000–1,9995,5907701,6301,3409,330
2,000–2,999970 2403501,560
3,000–3,999295110124436
4,000–4,999106  44150
5,000–9,99991  40131
10,000 and over8  311
    Totals106,04025,71018,2507,070157,070

The operation of the previously mentioned rule regarding reduction of potential exemptions can be seen in the figures in the above table. In the “under £300” group, the £950,000 allowed as wife's exemption would be increased by approximately £600,000 if the husband's income had been sufficient to allow the full exemption. The actual exemption for children was considerably less than the potential exemption in the £300–£399 and £400–£499 groups. There were 7,800 non-taxpayers with incomes of £500 and over in which either the children's or life assurance potential exemptions were reduced, except, of course, in those infrequent cases where the income and exemptions exactly balanced.

The data above do not include exemptions in those cases where the tax rebate of £26 was allowed in lieu of the exemption. These cases were mostly in the higher assessable income groups, and account for the smaller exemption figures in such groups.

Taxable Income and Tax Assessed. —After all exemptions have been deducted from the assessable income the balance of income (if any) is taxed in accordance with the schedule relating to the particular tax-year.

The next table gives in respect of individual incomes particulars of taxable income and of tax assessed for the various income categories in 1948–49 and the two preceding tax-years.

Amount of Assessable Income.Taxable Income.Tax Assessed.
1946–47.1947–48.1948–49.1946–47.1947–48.1948–49.
£    ££ (000)£ (000)£ (000)£ (000)£ (000)£ (000)
Under 3002,7903,3393,23042648990
300– 3997,60510,11611,6201,1671,504880
400– 4998,90010,82515,9401,3921,6521,490
500– 5997,2188,69212,4601,1671,3751,390
600– 6995,2576,4089,3308911,0641,210
700– 7993,9494,8787,0207068541,040
800– 8993,1803,9245,310602718840
900– 9992,4153,1304,620478605800
1,000–1,99913,06717,27524,6903,0793,9345,330
2,000–2,9994,2836,0368,7601,4441,9612,770
3,000–3,9991,7672,6123,9997371,0431,542
4,000–4,9998121,2041,845394560861
5,000–9,9991,0101,3902,3095867561,245
10,000 and over281475475188298296
    Totals62,53580,304111,61013,25716,81319,790

Rates of Tax: Individuals.—For the three tax-years shown the rate of tax was 2s. 6d. in the £1 on so much of the taxable income as did not exceed £100. For each succeeding £100 or part thereof the rate of tax was increased by 3d. up to a maximum rate of 12s., which was reached at incomes of £3,800. These rates, introduced in 1940–41, are known as basic rates, and are subject to a percentage increase or decrease each year in accordance with the provisions of the annual taxing Act fixing rates for that year. During the years under review, an additional tax of 33⅓ per cent. on these rates was imposed in respect of unearned incomes. The above rates were increased by 15 per cent. for each of the three tax-years shown above. There was, however, a limit of 15s. 6d. in the pound. Tax is payable on the amount of the taxable balance, but non-assessable income is included for purposes of determining the actual rate of tax. This is explained earlier under the heading of “Returnable Income.”

A rebate of £10, or the amount of tax assessed, whichever was the lesser amount, was allowed to all individual taxpayers for the assessment year 1948–49. Aggregated assessments on husband and wife were granted two such rebates.

The next table gives, in respect of incomes of individuals, particulars for the last three tax-years of the amount of tax assessed for each of the sources shown on page 684, together with various averages for 1948–49.

Source.Tax Assessed.Average Tax Assessed, 1948–49.
1946–47.1947–48.1948–49.Per Assessment.Per Taxpayer.Per £1 Assessable Income.Per £1 Taxable Income.
 £ (000)£ (000)£ (000)££s.d.s.d.
Salary or wages6,2757,3797,56018.628.401027
Professional occupation on own account9411,1611,490253.9280.54056
Commerce, trade, or finance2,0812,8832,93099.3127.72748
Farming2,6623,8496,080102.6128.52644
Investments and the like9141,0071,07088.1114.134511
Remainder38353465093.0119.02648
    Totals13,25716,81319,79038.155.42637

It will be observed that, although the lowest basic rate of tax is 2s. 6d. plus 15 per cent. on each £1 of taxable income, the average tax assessed per £1 of taxable income for source salary or wages is 2s. 7d. The rebate of £10 for each individual taxpayer is responsible for this result.

Geographical Distribution.—The decentralization of the Land and Income Tax Department afforded the opportunity of obtaining data on a geographical basis. The following table shows for the years 1946–47, 1947–48, and 1948–49 the number of assessments and average assessable income for each of the fourteen districts, which are indicated by the name of the town in which the branch office is situated.

Income-tax District.Number of Assessments.Average Assessable Income.
1946–47.1947–48.1948–49.1946–47.1947–48.1948–49.
    £££
Whangarei10,39812,03514,400429444512
Auckland82,71697,112105,600460464498
Hamilton41,84949,75159,100452475527
Napier20,00924,98728,400477516585
New Plymouth14,49417,30918,800462486544
Wanganui13,54716,18616,700477499512
Palmerston N.18,16522,46424,600483500525
Wellington65,55274,35885,900471483528
Nelson10,40613,25414,600458467506
Christchurch42,98449,66055,700439440492
Greymouth9,97510,16911,100438451511
Timaru12,75016,42817,700456477523
Dunedin32,92140,69444,700445458505
Invercargill16,46718,80121,600490507533
    Totals392,233463,208518,900460473518

Company Incomes.—It is perhaps desirable to draw attention to the fact that the term “companies” as it is used in connection with these statistics has been given a wider meaning than that which is commonly assigned to it. A definition of the term will be found on page 680.

The various statutory exemptions which are granted to individuals do not apply in the case of companies. The amounts of assessable income and taxable income are identical in the case of companies.

These statistics for companies have been compiled from returns for all companies, and are not estimates based on a sample survey, as in the case of individuals for 1948–49.

The following table gives particulars of the number of taxpayer companies and their aggregate assessable incomes for 1948–49 and the two preceding tax-years.

Amount of Assessable Income.Number of Assessments.Assessable Income.*
1946–47.1947–48.1948–49.1946–47.1947–48.1948–49.

* Excluding proprietary income.

† Not available.

    £ (000)£ (000)£ (000)
Not loss1,485 
Assessable income before losses296 
£    £      
0– 991,2171,4751,367485452
100– 1996817036559810396
200– 299507578631124142153
300– 399479430558166150195
400– 499376451462168203206
500– 599383422467208228253
600– 699336384370217244238
700– 799265304337199227253
800– 899258320294218271250
900– 999200258287190245272
1,000– 1,9991,4831,7301,7972,1032,4382,565
2,000– 2,9997328219001,7701,9962,201
3,000– 3,9993815195631,3191,7931,939
4,000– 4,9992763423631,2261,5271,623
6,000– 5,9992012482821,1021,3491,535
6,000– 6,9991481771859581,1351,199
7,000– 7,999971411447251,0521,077
8,000– 8,999689697581808823
9,000– 9,999636482596605773
10,000–19,9992903914044,0765,4825,582
20,000–29,9991131311492,7603,2363,631
30,000–39,9995869772,0092,3502,664
40,000–49,9993339501,4691,6972,209
50,000–99,9998593956,0636,4536,691
100,000 and over62728513,09315,76219,157
    Totals8,79210,25812,48241,48649,54955,637

In the following table, which is also classified by the amount of assessable income more complete data for the 1948–49 assessment year only are presented.

Amount of Assessable Income.Number of Assessments.Assessable Income Before Losses.*Assessable Income.Returnable Income.Net Loss.Income-tax Assessed.Social Security Charge.

* This column represents assessable income plus losses which have been carried forward from previous years.

† Excluding proprietary income.

  £ (000)£ (000)£ (000)£ (000)£ (000)£ (000)
Net loss1,485  102902 2
Assessable income before losses296122 18   
£    £       
0– 991,3676452697 105
100– 19965510396179 147
200– 299631165153369 2411
300– 399558203195310 3215
400– 499462211206232 3416
500– 599467261253290 4419
600– 699370242238269 4318
700– 799337257253349 4720
800– 899294254250252 4618
900– 999287273272281 5220
1,000– 1,9991,7972,5862,5653,178 559195
2,000– 2,9999002,2272,2012,346 584165
3,000– 3,9995631,9521,9391,971 607146
4,000– 4,9993631,6271,6231,714 591123
5,000– 5,9992821,5361,5351,598 631115
6,000– 6,9991851,2031,1991,217 54588
7,000– 7,9991441,0821,0771,927 52279
8,000– 8,99997823823875 41460
9,000– 9,99982773773788 37956
10,000–19,9994045,5825,5825,740 2,779414
20,000–29,9991493,6323,6314,178 1,817267
30,000–39,999772,6642,6642,905 1,323195
40,000–49,999502,2092,2092,254 1,100165
50,000–99,999956,6916,6917,225 3,320502
100,000 and over8519,24419,15719,741 8,9961,315
    Totals12,48255,98455,63761,00690224,5134,036

For the years prior to 1948–49, the company statistics were also analysed by the source of income, the classification being identical with that given for individuals on page 684. This classification was not particularly satisfactory, and for 1948–49 was superseded by that given in the next table. The latest classification is a slightly modified version of the United Nations industries classification.

Industry Group.Number of Assessments.Assessable Income Before Losses.*Assessable Income.Returnable Income.Net Loss.Income-tax Assessed.Social Security Charge.

* Tills column represents assessable income plus losses which have been carried forward from previous years.

† Excluding proprietary income.

 £ (000)£ (000)£ (000)£ (000)£ (000)£ (000)£ (000)
Agriculture and livestock production3276266156273922247
Forestry, hunting and fishing2085034884913919336
Mining and quarrying1443142883139711415
Manufacturing—       
  Food, drink, and tobacco5016,2046,1946,411562,980465
  Apparel, textiles, and footwear5632,6912,6822,702331,194201
  Metals and metal products9422,8752,8603,051481,205214
  Other1,2105,9285,8886,2051232,658444
Construction5851,0171,0071,0513235775
Electricity, gas, water and sanitary services2117217117148211
Commerce—       
  Wholesale and retail trade4,22922,31822,18723,33118510,0841,658
  Other1,78710,42410,38113,4401304,322646
Transport, storage, and communication6771,3281,3031,43046493107
Community services1,2681,5611,5511,75969599116
Other20222225 92
    Totals12,48255,98455,63761,00690224,5134,036

Some difficulties were experienced in applying the industry classification to the data available for these statistics. Where a company conducted more than one type of business, it was necessary to attempt to determine which was the principal type of business. The classification has been based on the principal type of business when more than one was involved. It would have been desirable to separate wholesale and retail trading activities, but this was not practicable with the information at present available.

Rates of Tax: Companies.—For 1948–49, the standard rate of tax payable by a company was 2s. 6d., increased by 1/100d. for every £1 of taxable income up to £6,300. Above £6,300 the rate was 7s. 9d., increased by 1/150d. for every £1 of taxable income in excess of £6,300, with a maximum of 8s. 8d. in £1. In addition to the foregoing, a further amount equal to 15 per cent. of the above rates was imposed. Companies did not pay the additional tax of 33⅓ per cent. on unearned income mentioned earlier. Social security charge is levied at the normal rate of 1s. 6d. per £1 of income. Not all companies are liable to pay this charge. Further information concerning rates of taxation will be found on pages 489–490.

Non-resident Traders.—A non-resident trader is defined as any person who, being in New Zealand, carries on business there without having any fixed and permanent place of business or abode in New Zealand. Returns made by agents for non-resident traders, and returns by the consignees of overseas goods sold on consignment account, are included in this class. Non-resident traders are now included in the statistics either as individuals or companies, as the case may be.

STATISTICS OF 1945 CENSUS.—The following explanatory matter and table in regard to income is given in the present context since it shows incomes over a wider field than is normally available from other sources.

Incomes.—The table below gives for 1936 and 1945 censuses the number of persons whose stated income fell into one or other of the income groups listed. As the Maori schedule did not include a question on income, the data shown are necessarily confined to the European section of the population.

Besides the division of the total population into income categories, a similar classification is made available covering all those persons actively engaged in some form of industrial activity.

The period for which income was requested in the 1945 census schedule related to the twelve months ended 31st March, 1945, and in the case of the earlier census the twelve months ended 31st December, 1935. In both censuses, where particulars were not available for the precise period, provision was made to accept information covering the nearest twelve-month period instead.

Income Group.Persons Actively Engaged.Total Population.
Males.Females.Total.Males.Females.Total.
1945 Census
Under £5014,92914,44729,376251,530545,085796,615
£50 to £9916,53822,25138,78948,93086,321135,251
£100 to £14926,59636,42763,02335,88956,66192,550
£150 to £19938,95038,40577,35544,80849,76694,574
£200 to £24939,89022,97162,86144,94330,91775,860
£250 to £29947,13610,05957,19550,40714,44564,852
£300 to £34962,7794,94167,72065,4637,44772,910
£350 to £39953,4552,64556,10055,1194,07759,196
£400 to £44942,2931,71144,00443,5112,71046,221
£450 to £49925,84894226,79026,6371,61628,253
£500 to £54919,05362719,68019,7441,20020,944
£550 to £59910,18135510,53610,57567311,248
£600 to £6498,7232899,0129,0606629,722
£650 to £6995,1531855,3385,4194095,828
£700 to £7493,8511353,9864,0623424,404
£750 and over33,9321,54335,47535,8493,60439,453
Not specified23,0385,10628,14430,65615,01745,673
    Totals472,345163,039635,384782,602820,9521,603,554
1936 Census
No income22,6683,75626,424231,720493,772725,492
Under £5282,02451,226133,25099,364112,636212,000
£52 to £103110,62844,438155,066117,23565,163182,398
£104 to £15581,68617,61699,30286,02626,207112,233
£156 to £20766,4336,89373,32669,25411,21080,464
£208 to £25959,6213,45863,07961,5645,85867,422
£260 to £31128,3891,58129,97029,7113,00732,718
£312 to £36312,72366013,38313,5761,52615,102
£364 and over28,05286128,91330,9733,77134,744
Not known92151072,3781,8394,217
Not specified12,3178,08020,39714,42510,26924,694
    Totals504,633138,584643,217756,226735,2581,491,484

Chapter 37. SECTION 37—PRICES

PRICE FIXATION—In New Zealand, as in other countries, regulation of prices by governmental control has been a feature of economic policy over a considerable period of years. Nation-wide control of prices of essential commodities was resorted to during the war of 1914–18, the motives behind legislation and regulations towards that end being the necessity of purchasing at reasonable prices commodities required for war purposes, and the protection of the consumer from the full force of the abnormal rises in prices caused by the scarcity of many necessary commodities.

The administration of these price-fixing measures was in the hands of the Board of Trade, set up under the provisions of the Cost of Living Act, 1915, regulations being issued from time to time fixing maximum prices for various commodities—e.g., sugar, timber, wheat, &c. The Board of Trade Act, 1919 (a consolidation and amendment of the pre-existing legislation), contained provisions for the establishment of the Department of Industries and Commerce and for a Board of Trade, the Board to consist of the Minister of Industries and Commerce (President) and not more than four other members. By an amendment in 1923 the Board was abolished, its functions being taken over by the Minister. Authority was also taken under the Act “for the establishment of fixed minimum or maximum prices or rates for any classes of goods or services or otherwise for the regulation or control of such prices or rates.” The Act also included provisions especially aimed at the prevention of profiteering.

The control of prices initiated during the war years continued in some instances well into the post-war period, the dates of cessation of control in certain important individual cases being: Bacon and ham, February, 1920; butter, August, 1921; sugar, August, 1923. Control of prices of building-materials was resorted to in 1920 and 1921, during a period of acute shortage of these materials.

Wheat, flour, and bread prices have been controlled almost without intermission since 1914–15, superphosphates since October, 1931, and motor-spirits from 1933. Road services have been subject to regulation in regard to fares and freight rates since 1931; aircraft fares are also regulated. [For fuller details see pp. 785–786 of the 1940 Year-Book.]

A Prevention of Profiteering Act was passed in 1936, prohibiting the making of unreasonable increases in the prices charged for goods and services.

In June, 1939, a Price Investigation Tribunal was constituted from the members of the existing Advisory Board under the Board of Trade Amendment Act, 1923, and restrictions were placed on increasing prices of goods and services without prior application to this Tribunal; prices were also to be fixed by the Tribunal for goods that had not previously been on the market.

Price Regulation during Second World War.—Pursuant to a Proclamation of Emergency under the Public Safety Conservation Act, regulations were made on 1st September, 1939, with the object of stabilizing prices. These regulations provided that prices of goods and services should not be raised above the prices ruling on 1st. September, 1939, except as might be specifically authorized by the Minister of Industries and Commerce. A clause in the regulations also prohibited the hoarding of goods. These regulations were superseded by the Control of Prices Emergency Regulations of 29th December, 1939, which constituted what is virtually the present Price Tribunal.

Foodstuffs generally, and sugar, wheat, and flour specifically, were brought under the control of the Government by emergency regulations made on 4th September, 1939.

In October, 1940, the Economic Stabilization Conference (which the Government had convened) put forward recommendations designed to stabilize prices, wages, and costs. In furtherance of these recommendations the retail prices of thirty-eight commodities, comprising the more important foodstuffs, clothing, fares, fuel, and lighting, were stabilized as from 1st September, 1941.

In December, 1942, as a result of the deliberations of the Economic Stabilization Committee set up in September, 1941, measures were taken to ensure as far as possible that the level of retail prices should not exceed the level ruling in that month. A varied range of essential items of household consumption was selected, and their prices stabilized; food, clothing, hardware, furniture, stationery, &c., were all represented in this list of approximately 110 items. Provision was made for the stabilization of weekly rentals, and of wage-rates, &p. These provisions were embodied in the Economic Stabilization Emergency Regulations 1942, by which also the Committee was reconstituted as the Economic Stabilization Commission. Although this earlier legislation providing for an Economic Stabilization Commission was repeated in the Economic Stabilization Act of 1948, there are at present (November, 1950) no appointed members of the Commission, its functions being discharged by the Minister in Charge of Stabilization, except that those functions of the Commission relating to the marketing and prices of primary products are now dealt with by the Marketing Advisory Council, which reports to the Minister of Marketing.

The principal new feature of price control in 1943 was the fixation of maximum retail prices for many kinds of vegetables, apples, pears, and certain other fruits; these maxima made full allowance for seasonal variations.

No new element of control was introduced in 1944, 1945, or 1946 as the price-orders of those years either revised earlier orders or covered additional items.

POST-WAR PRICE REGULATIONS.—The Control of Prices Act, 1947, consolidated the powers and functions formerly exercised mainly under Emergency Regulations. It defined the general duties and functions of the Price Tribunal as the fixing of prices for goods and services, the investigation of complaints with respect to prices, maintenance of a survey of the prices of goods or services, the institution of legal proceedings for offences in relation to prices, and the taking of such other steps as in its opinion might be necessary to prevent profiteering or the exploitation of the public. It provided that, except in special circumstances, the sittings of the Tribunal should be open to the public.

The appointment of a Director of Price Control, in charge of the Price Control Division of the Department of Industries and Commerce, freed the Tribunal from administrative and enforcement duties, while provision was made for the delegation of pricing powers to the Director, subject to a right of appeal to the Tribunal.

The Price Tribunal has power to—

  1. Make Price Orders fixing, in such manner as it thinks fit, the actual or the maximum or the minimum price for any goods sold in a specified market and under specified conditions. Price Orders are published in the New Zealand Gazette, and must generally be displayed in any shop where the goods to which they relate are sold.

  2. Authorize selling-prices, which may be of general or special application.

Since the passing of the Act the Tribunal has, in the case of many commodities, issued Price Orders which prescribe that maximum prices are to be calculated by adding specified percentages to costs. In other cases General Price Adjustment Orders have been made (the latest of which was issued in February, 1951) in respect of certain classes of goods, permitting manufacturers or vendors to recover by means of price increases the whole or a specified part of their increased costs resulting from the reduction or removal of subsidies, the raising of freight charges, or certain wage increases prescribed by General Order of the Court of Arbitration.

In November, 1948, most fruits and vegetables were, by notice under section 18 of the Control of Prices Act, 1947, released from direct price control. During 1949 three similar exemption orders were made, the first relating to sales by local authorities of goods and services other than milk, gas, electricity, and appliances, the second to confectionery, cake, jewellery, radio sots, cosmetics, &c., and the third to white oats. The policy of liberation from control was continued during 1950 at an accelerated pace, twelve lists of exempted goods being issued in the first eight months of that year. Meat prices, which had already been free during certain months of 1949, were permanently removed from control in May, 1950. Amongst a large number of other exempted items are fish, new potatoes, restaurant meals, tea, and delivery of bread.

It should be observed that certain prices controlled under other legislation do not come within the scope of the Control of Prices Act, 1947. For example, wholesale prices of butter and cheese for local consumption are fixed by Orders in Council under the Marketing Act, 1936; the maximum price of motor-spirits by Order in Council (on the recommendation of the Minister of Industries and Commerce) under the Motor-spirits (Regulation of Prices) Act, 1933; while the Tenancy Act, 1948, provides for the fixation, on application, of fair rents by the appropriate Court. As a further illustration the Transport Law Amendment Act, 1950, provides for the fixation of passenger fares and freight charges on services other than those operated by local authorities by the Commissioner of Transport, subject to a right of appeal to a Transport Charges Appeal Authority.

STATE MARKETING.—Certain fields of price fixation are intimately connected with the functions of the Marketing Department, although the relevant price orders are still in many instances issued by the Price Tribunal. The functions in question hero are those exercised by the Department in respect of internal marketing. Government activities in connection with the export of primary products are dealt with on pages 315–327.

The Marketing Department was established by the Marketing Act, 1936, which transferred to it many of the functions previously exorcised by the New Zealand Dairy Board and made provision for the compulsory acquisition by the Department at prices fixed by it of butter and cheese for export and also for consumption in New Zealand, regulations in this behalf being subsequently issued from time to time. By the Dairy Products Marketing Commission Act, 1947, however, these functions, as regards butter and cheese for export—later extended to cover all dairy produce for export—were transferred to the New Zealand Dairy Products Marketing Commission.

Control of prices of export meat was assumed by the Marketing Department under the authority of the Marketing Amendment Act, 1939, Meat Marketing Orders being issued annually until 1947, and again in 1949 and 1950. As from the 1st May, 1948, however, the New Zealand Meat-producers Board (constituted by the Meat-export Control Act, 1921–22) was entrusted with routine administration of shipping and payments to freezing companies for all meat destined for export under bulk purchase agreements negotiated by the Government with the United Kingdom (see Section 18A).

The Marketing Amendment Act of 1937 set up the Internal Marketing Division within the Marketing Department with power to control wholesale and retail prices of eggs, fruit, and honey, as well as dairy-produce, while subsequent regulations added hops, potatoes, and other primary commodities. The control and distribution of bananas and imported citrus fruits were placed in the bands of the Internal Marketing Division in 1938, pineapples being added in 1940. Since the beginning of 1951, however, the marketing of imported citrus fruits, bananas, and pineapples has been taken over by a registered company representing trade interests.

Apples and pears are purchased from growers by the New Zealand Apple and Pear Marketing Board at prices determined by the Minister of Marketing after consultation with the Board. The Board (since August, 1950) advertises its wholesale prices in the daily press, but the mark-up from wholesale to retail is fixed by Price Order issued by the Price Tribunal.

Prices of eggs are determined by price orders made on the recommendation of a Committee appointed under section 8 of the Marketing Amendment Act, 1937. From February, 1950, egg prices are to change seasonally only twice a year—i.e., on the Monday nearest the 20th February and the 1st August.

Control of prices of milk in Wellington was formerly in the hands of the Wellington City Council, which was granted a monopoly (with certain minor exceptions) of the sale of milk in Wellington by a local Act passed in 1919. The Auckland Metropolitan Milk Act, 1933, authorized the Auckland Metropolitan Milk Council to fix prices for milk sold in Auckland City and suburbs. This latter act was superseded by the Milk Act, 1944, referred to on page 558, which created the Milk Marketing Division (of the Marketing Department) and made provision for an extension of the system of local control in regard to the sale of milk. Under its local Act the Wellington City Council remained the major-distributor and the equivalent of the Milk Authority for the capital city. Prices in all areas, including Wellington, are the subject of Price Orders pursuant to the Control of Prices Act, 1947 (formerly pursuant to the Control of Prices Emergency Regulations 1939).

By the Marketing Amendment Act, 1948, the Export Division, the Internal Marketing Division, and the Milk Marketing Division were abolished as separate divisions of the Marketing Department.

The general policy of State marketing of primary products has exhibited three phases:—

  1. The original tendency was for the State to trade directly, buying products outright, bearing losses, and retaining profits.

  2. This was followed by the formation of financial pool accounts for each industry, the profits, subject to the general policy on stabilization, being paid out to suppliers, and any reserves held for the benefit of the industry.

  3. The Marketing Department now co-operates closely with Marketing Committees of representatives of the industries concerned and Government nominees. Thus each industry has a voice in the marketing of its products, but avails itself of the facilities of the Department (see section 5 of the Finance Act, No. 2, 1948).

PRICE STATISTICS.—Actual prices of many goods and services at various levels are collected periodically by the Census and Statistics Department. The fields covered are retail prices, wholesale prices, export prices, import prices, and share prices. In the case of retail, wholesale, and share prices, direct inquiry is made (generally from sellers), export and import prices being derived from trade statistics, while, in addition, average prices of many materials and products of manufacture are available from the Statistics of Factory Production. Some retail and wholesale prices are published in the Annual Report on Prices, Wages, and Labour Statistics, but the chief use made of the prices collected is in the compilation of price index numbers. These are, fundamentally, weighted averages of price ratios, the weighting being so arranged that the index numbers give a general indication of price movements in the field covered. The usual technique employs fixed weights with, however, provision for revision of the weighting pattern at suitable intervals.

RETAIL PRICES.—A historical survey of retail prices in New Zealand will be found on pages 1007–1016 of the 1947–49 Year-Book, including an account of the various series of official index numbers of retail prices in New Zealand which have been current in the past, while pages 998–1003 of the same volume provide a description of the present Consumers' Price Index initiated in 1949. The last ten years of the base 1926–30 series—the immediate forerunner of the Consumers' Price Index—are shown in the table following, together with a final compilation of the old index for the base period of the new index, which enables the two series to be linked together.

INDEX NUMBERS OF RETAIL PRICES OF THE VARIOUS GROUPS OF COMMODITIES, SINGLY AND IN COMBINATION, 1939 TO 1949

Base: Weighted average of prices in 1926–30 in twenty-five centres in case of Groups I to IV, and average of prices in 1926–30 in four chief centres in case of Groups V, VI, and VII (= 1000)

Year.Food.Rent (IV).Fuel and Light (V).Clothing, Drapery, and Footwear (VI).Miscellaneous (VII).All Groups Combined (I–VII).
Groceries (I).Dairy-produce (II).Meat (III).All Food (I–III).
19391067999107710528879919601086990
194010391010115310769161005106111701035
194111561010113111049451012115912111073
194212361023111511279631021124312891109
194312111029115011349731033134713371134
194412411030116811529821038141313591155
194512311032117311519871044144214421170
194612351033117411539991057147014501180
1947133310711249122410101094149214781217
1948149511351471138210241191163715571314
1949 (1st quarter)148011251506138910311232165915441324

By combining the successive series and converting the whole to the base: first quarter of 1949—the base period of the Consumers' Price Index—(= 1000), the following “long-term linked series” emerges.

RETAIL PRICES INDEX NUMBERS (ALL GROUPS)*

EQUATED TO BASE: FIRST QUARTER, 1949 (= 1000)

Year.Index No.
1907440
1908442
1909436
1910441
1911438
1912451
1913461
1914474
1915511
1916547
1917594
1918642
1919689
1920770
1921781
1922719
1923724
1924743
1925758
1926763
1927756
1928760
1929758
1930741
1931684
1932633
1933600
1934610
1935632
1936653
1937697
1938718
1939748
1940782
1941810
1942838
1943856
1944872
1945884
1946891
1947919
1948992
949 (first quarter)1000

* Food, housing, and fuel and lighting in the years 1907–1913.

The following diagram is of interest in that it shows the movement in retail prices index numbers over the period 1907–1950, the data being drawn from the figures given in the preceding table (long-term linked series) and those given on page 699.

Consumers' Price Index.—The necessity for periodical revision of the pattern of index numbers of retail prices—indeed, of any index series—is obvious, if touch with reality is to be maintained. Spending patterns are constantly changing by reason of new kinds of commodities and services coining into vogue and older habits being discarded; also the proportions of total expenditure represented by the component groups and items vary continuously. Nevertheless, between revisions, in order that the index may reflect price changes only and not changes in volume of consumption, it is essential that fixed weights should be maintained. Apart from the Wartime Price Index, which was specially adapted to emergency conditions, there was no general revision of weights from 1930 until 1948, when the 1926–30 pattern of consumption was replaced by the 1946 pattern in the moulding of the Consumers' Price Index. The following are the more important recommendations of the Index Committee now embodied in this index:—

  1. A new retail prices index basal on the first quarter of 1949 should be initiated:

  2. The regimen of the index should cover “the whole range of commodities and services used in the average household—with representation, as far as possible, of the amenities of modern living.” Durable consumer goods, seasonal fruits and vegetables (with normal seasonal price fluctuations “smoothed” by appropriate techniques), and services should be represented in the index:

  3. In addition to rentals of unfurnished houses, rentals of unfurnished flats and the costs of owner-occupied houses should be represented in the housing group of the index:

  4. The weighting pattern should represent post-war habits of consumption:

  5. The index should cover prices in twenty-one towns spread over the whole country and adequately representing all urban localities. The New Zealand index will represent an average of indices for these towns weighted according to population:

  6. Monthly index numbers should be compiled for the food and fuel and lighting groups, and quarterly index numbers for all groups combined.

The complete regimen—i.e., the list of constituent items with comparative weights assigned to each—is given in a Special Supplement to the October-November, 1949, issue of the Monthly Abstract of Statistics entitled “Retail Prices in New Zealand, with Special Reference to the Consumers' Price Index.” There are now three hundred items, a considerable increase on the previous regimen. These new items include certain conventional necessaries such as chocolate, ice-cream, cosmetics, and replacements of radio receiving sets, vacuum cleaners, and washing machines. Other items introduced into the regimen for the first time were fresh fruits and vegetables and housing-costs of owner-occupiers, for the inclusion of which entirely new techniques had to be devised, while many other commodities and services which had been previously excluded on the general assumption that their average price movements were in approximate accord with those of the body of included items, were considered to be worthy of individual representation. This assumption is still made in respect of a large number of less important commodities in the now index (for clearly the total number of items of household expenditure greatly exceeds three hundred); but hero two points of some significance require to be noted:—

  1. The three hundred items are those “priced” from time to time. Items or groups of items which have not been selected for pricing but which it is desired to represent in the index have their weights either assigned to individual “priced” items or spread over a group of such items.

  2. There are still residual groups of items which are not represented in the index—i.e., no assumption is made as to their price movements corresponding with, recorded price movements. (There might in fact be a correspondence, but then the index would be actually more comprehensive than it was designed to be.) Under this heading the following are comprised:—

    1. Luxury spending (especially on alcoholic liquors and private motoring, but also on such items as hotel accommodation, holiday travel (exclusive of rail fares), sports expenses, domestic help, and private telephone rentals. This expenditure may be regarded as a disposal of a surplus available after legitimate cost-of-living expenses have been met.

    2. Taxation, as being not a true expense but rather a reduction of income (see also (d)).

    3. Investments (savings if capitalized, life insurance).

    4. Expenditure not related to value received and therefore incapable of expression as a “price,” which is the cost of a specified satisfaction (gifts, charity, gaming expenses).

    5. Expenses so irregular in occurrence and amount that their inclusion is not feasible (fire losses, legal expenses, cost of removal to another locality).

An estimate of the annual value, at prices ruling in the first quarter of 1949, of personal consumption represented in the index gave a figure of £247 million. This may be compared with the estimate of £340 million for total personal consumption in 1948–49 at market prices shown in the 1950 Official Estimates of National Income and Expenditure. The inference would he that 73 per cent. of total personal consumption is represented in the index, but the two estimates neither have strictly a common basis nor cover exactly the same period of time. It may nevertheless be assumed that approximately 75 per cent. of total personal expenditure is represented in the Consumers' Price Index.

Seeing that the weights are based on physical national consumptions (or at least quantities available for consumption) in 1946, the index cannot be related to any specific type of household; it has in view simply an average family comprising 3.6 persons (men, 1.32; women. 1.32; boys, 0.41; girls, 0.40; and infants 0.15; the infants being under two years and the boys and girls other children under sixteen.) No application of the index numbers to households deviating from this mean will be valid unless due allowance is made for the effect of such deviations, regard being always had to the published regimen which defines the exact standard and pattern of living, the varying cost of maintaining which the index is designed to measure.

The following table shows the group weighting on a percentage basis:—

CONSUMERS' PRICE INDEX GROUP WEIGHTS

Group.Percentage of Total Expenditure in Base Period.
Meat and fish8.18
Fruits, vegetables and eggs7.66
    Seasonal4.90
    Non-seasonal2.76
Other foods18.38
        All food34.22
Pent6.66
Other housing10.09
        All housing16.75
Fuel and lighting3.86
Clothing17.25
Footwear3.06
        Clothing and footwear20.31
Household durable goods5.44
Other commodities10.90
Services8.52
        Total miscellaneous24.86
            All groups100.00

The foregoing remarks are relative to the establishment of a weighting pattern, a necessary labour in the inauguration of the index. For the regular compilation of index numbers the further task of periodical collection of prices must also be undertaken. For the first time in this country a small field staff was appointed to the Census and Statistics Department for price collecting duties. All quarterly collections are personally carried out by these officers, who also check at intervals the monthly prices obtained through other channels. Particular stress is laid on the maintenance of a uniform standard of quality in the commodities priced, unavoidable changes in the specifications being compensated for by suitable price adjustments if necessary. The same retail establishments, as far as possible, are visited at every collection. Following is a statement of the periodicity and geographical coverage of price collection in respect of each group of the index.

Group.Periodicity of Collection.Date of Collection.Towns Covered.
Food (excluding seasonal fruits and vegetables)Monthly15th of monthTwenty-one towns.
Seasonal fruits and vegetablesWeeklyEvery FridayTon representative towns.
Housing—   
  Rents: houses and flatsSix monthlyFebruary and AugustTwenty-one towns.
  RatesYearlyFebruaryTwenty-one towns.
  Repairs and maintenanceYearlyFebruaryFour chief centres.
Fuel and lightingMonthly15th of monthTwenty-one towns.
Clothing and footwearQuarterlyFebruary, May, August, NovemberTen representative towns.
Miscellaneous—   
  HardwareQuarterlyDittoDitto.
  FurnitureQuarterlyDittoDitto
  Household appliancesQuarterlyDittoFour chief centres.
  Cleaning suppliesQuarterlyDittoTen representative towns.
  Personal requisitesQuarterlyDittoFour chief centres.
  Educational requisitesQuarterlyDittoFour chief centres.
  Services—   
    Postage, &c.QuarterlyDittoFour chief centres.
    EntertainmentQuarterlyDittoFour chief centres.
    Personal servicesQuarterlyDittoFour chief centres.
    Health servicesQuarterlyDittoFour chief centres.
    TransportQuarterlyDittoFour chief centres.
    Patent medicinesQuarterlyDittoFour chief centres.
    Union duesYearlyFebruary.Four chief centres.

Where “four chief centres” are mentioned the reference is to Auckland, Wellington, Christchurch, and Dunedin. The “ten representative towns” comprise also Hamilton, Napier, New Plymouth, Palmerston North, Nelson, and Invercargill; while the “twenty-one towns” are made up by the inclusion of Whangarei, Tauranga, Rotorua, Gisborne, Wanganui, Masterton, Blenheim, Greymouth, Ashburton, Timaru, and Oamaru.

In the combination of the individual towns into groups or into a single group, population weights are employed which give representation not only to the city or borough itself, but to neighbouring boroughs and town districts also. Thus there are three series of population weights, which also are subject to revision at any revision of the commodity weights. Each of the three series has the same total, representing approximately 60 per cent. of the total population of New Zealand. It will be apparent that the index as a whole has predominant reference to urban dwellers.

Further details as to the construction of the index will be found in the booklet “Retail Prices in New Zealand, with Special Reference to the Consumers' Price Index,” mentioned earlier.

The following tables show the index numbers calculated for the first year and nine months of the currency of the Consumers' Price Index. The table headings are self-explanatory. The all-groups index numbers for the twenty-one towns combined shown in the first section of the table may be linked with those already given for earlier years on page 695, these having been converted to the base first quarter of 1949 (= 1000), which is the base of the Consumers' Price Index.

CONSUMERS' PRICE INDEX.—QUARTERLY INDEX NUMBERS (ALL GROUPS), TWENTY-ONE TOWNS COMBINED

Base: Weighted average twenty-one towns, first quarter, 1949 (= 1000)

Food.Housing.Fuel and Lighting.Clothing and Footwear.Miscellaneous.All Groups.
Meat and Fish.Fruits, Vegetables, and Eggs.Other foods.All Food.Rent.Other Housing.All Housing.Clothing.Footwear.Clothing and Footwear.Household Durable Goods.Other Commodities.Services.All Miscellaneous.
Calendar Year—                
  194910561008101510231000100010001017100010111002997998100410001009
Quarter Ended—                
  1949—                
    March 31st1000100010001000100010001000100010001000100010001000100010001000
    June 30th100697810201007100010001000100110001003100199899810009991002
    September 30th11019921027103799910001000102810051018100799599710019981014
    December 31st111610611011104799910001000103999610221000993996101510021018
  1950—                
    March 31st10671048101010321008103210221042995106910069891002103510111020
    June 30th1100103111241097100810321022109110161156103710031001104110151052
    September 30th1150109112041166102110321028119910331179105510171016104710271087

CONSUMERS' PRICE INDEX.—QUARTERLY INDEX NUMBERS FOR INDIVIDUAL TOWNS AND GROUPINGS

Base: Weighted average twenty-one towns, first quarter, 1949 (= 1000)

Food.Housing.Fuel and Lighting.Clothing and Footwear.Miscellaneous.All Groups.*Food.Housing.Fuel and Lighting.Clothing and Footwear.Miscellaneous.All Groups.*

*In calculating the all-groups index numbers for the eleven other towns, singly and in combination, the missing aggregates for the Clothing and Footwear and Miscellaneous groups were supplied from the first ten towns.

Quarter Ended 31st December, 1949 Quarter Ended 31st March, 1950
Auckland10301027105710199891018103610461061102810031029
Wellington105010319539931012102210231060955100510181021
Christchurch1062101310059511008101610311032100395610131010
Dunedin104399683310031005101010231019835100210081007
    Four chief centres104310229929971001101810301044994100510091021
Hamilton106495610471000993101510539781055100010101019
Napier1045941117110131010101710369811154101810131022
New Plymouth106195111351011992101810389911142101610071022
Palmerston North10569811040104510181031101610001037104310231021
Nelson10541004116799710111028105110051167101410211033
Invercargill10649621047987100310161068992104299510061024
    Six provincial towns1057962109510111005102010429901094101610131023
Whangarei10749331252  102510499691322  1031
Tauranga10749841041  102310669971039  1026
Rotorua10619621113  101710329831114  1015
Gisborne10349401369  101610189491400  1018
Wanganui10499441214  102910089651214  1019
Masterton10649541240  102510509631257  1026
Blenheim10519771296  102710489851296  1033
Greymouth10419231089  99910359371089  1003
Ashburton10599011431  101210289301431  1009
Timaru10419761004  1003101810031017  1003
Oamaru10519261157  101310199481163  1006
    Eleven other towns10539481180  101710319681192  1016
Quarter Ended 30th June, 1950 Quarter Ended 30th September, 1950
Auckland109210461098106310091058115310461182107910171087
Wellington10911060980103110221052116210651112104910411091
Christchurch10971032108598910171044116610351201100910261079
Dunedin1674101987510311013103311341027959105010201064
    Four chief centres109010441037103710141051115619471140105410251084
Hamilton1133978112010181019105512029811198102810281086
Napier1123981118110491012105911869941346108610311101
New Plymouth1107991119710481012105611769981346106310231092
Palmerston North111510001101107910251065119210181211108510401104
Nelson111410051203102910241060118810251381106510341105
Invercargill1097992111910121010104111879971301104410201089
    Six provincial towns11169901148104210171056118910001288106310291096
Whangarei11099691419  106312129821539  1110
Tauranga11599971086  1065123010171136  1100
Rotorua11229831178  105412049881226  1089
Gisborne11099491450  105811709551546  1095
Wanganui10929651271  105811589771392  1093
Masterton11339631323  106412089751395  1102
Blenheim11149851358  106212039981476  1109
Greymouth10969371153  103311689451234  1069
Ashburton10909301502  104111649361662  1079
Timaru106510031096  1029114810021163  1066
Camaru11059481249  104611919561392  1088
    Eleven other towns11059681258  105111819761352  1089

CONSUMERS' PRICE INDEX.—MONTHLY INDEX NUMBERS (FOOD AND FUEL AND LIGHTING)

TWENTY-ONE TOWNS COMBINED

Base: Weighted average twenty-one towns, first quarter, 1949 (= 1000)

Meat and Fish.Fruits, Vegetables, and Eggs.Other Foods.All Food.Fuel and Lighting.
Calendar Year—194910561008101510231017
Month—     
  1949—July1046952102610141025
    August1123998102710431027
    September11351026102710521033
    October11381058101210521035
    November11371035101010461041
    December10721091101110441042
  1950—January10661061101010341042
    February10631053101010321042
    March10711029101110301042
    April10861043102810451041
    May1100987115111021101
    June11131061119211441131
    July11361087120011591193
    August11451090120611651201
    September11711095120511721203

WHOLESALE PRICES.—In most countries index numbers of wholesale prices are compiled from the price data available in trade journals or from the published reports of wholesale markets. In New Zealand wholesale markets scarcely exist, and consequently price data for the wholesale-prices investigation have been collected from wholesale merchants and traders who, from the volume of the business they transact, are able to supply representative information.

Since 1917 such wholesale-price quotations have been collected monthly, the inquiry being for the most part confined to the four chief centres. In the case of a few commodities (e.g., newsprint), of which there is a consumption so large that the article can scarcely be omitted from the price-index, yet for which no actual market exists within New Zealand, the inclusion of the commodity in the index number has been rendered possible by ascertaining movements of prices from the import statistics. Statistics of imports and exports as a source of price data have, however, been avoided as far as possible, on the ground that where quotations are obtained from traders care can be taken to ensure that the grade, &c., quoted is kept constant. A considerable volume of data as to wholesale prices was secured from merchants and traders (and in a few cases from import figures) by means of retrospective investigations covering the years 1891 to 1917, and sufficient information was secured to permit of the compilation for each year from 1891 onwards of a “general” wholesale prices index number based on the prices of 106 commodities.

During 1926 a revision of the wholesale prices index was effected, and was so designed, inter alia, as to permit of the inclusion in the index number of several commodities such as motor-spirits, &c., the importance of which had increased enormously since the index was originally instituted. The list of commodities represents a wide range, covering articles of local production and of foreign production, and of farm, mine, marine, factory, &c., origin.

In 1937 a further revision of the wholesale prices index was put in hand, but except for, the new base-period (which is 1926–30=1000) these indices do not differ essentially from those of the previous series. The revision consisted mainly of adjustment of the weights in accordance with changed consumption, the elimination, as far as possible, of “double counting” (the inclusion of a commodity in its raw state and again in a processed condition), the adoption of some new items, and the omission of some others, previously included, which had proved unsatisfactory. A detailed account of the method of computation of the index is given in the Statistical Report on Prices, &c., for 1937.

Indices in the present series have been prepared, annually from 1913 onward, and monthly commencing with 1936.

WHOLESALE PRICES.—GENERAL INDEX NUMBERS.—BASE: 1926–30 (= 1000)

Year.Index Number.
1913724
1914748
1915805
1916882
19171024
19181225
19191282
19201536
19211428
19221194
19231115
19241120
19251114
19261053
19271001
1928994
1929988
1930963
1931901
1932878
1933902
1934907
1935936
1936945
19371022
19381036
19391071
19401195
19411311
19421416
19431513
19441558
19451584
19461589
19471649
19481837
19491825

The wholesale prices index is purely a commodity index, no attempt having been made to cover the wholesale prices of services such as the supply of electric power, transportation, &c. The index relates only to commodities consumed in New Zealand, eb item included in the make-up of the index being weighted by a factor representing production, plus imports, less exports (i.e., local consumption). The wholesale prices index numbers are compiled by the aggregate expenditure method, and where applicable, sales tax is included in the prices used in the index.

The following table shows annual wholesale prices index numbers by groups.

WHOLESALE PRICES.—INDEX NUMBERS BY GROUPS.—BASE: 1926–30 (= 1000)

Group.1914.1939.1945.1946.1947.1948.1949.
1. Foodstuffs, &c., of vegetable origin—       
  A. Agricultural produce642132815881539157717351908
  B. Fresh fruit and vegetables764105512391223131516461629
  C. Milled agricultural products644776757757790869903
  D. Other foods and groceries of vegetable origin613118918501858194021422067
  A-D. Four subgroups combined634112415501544161017891782
2. Textile manufactures53581517271724173920242021
3. Wood and wood products582118415041581165217721844
4. Animal products—       
  A. Meats941101113641445171216911618
  B. Semi-manufactured animal products (not foods)838691867873878878930
  C. Leather676112913671390161517321822
  D. Other foods and groceries of animal origin78596510711081114012161245
  A-D. Four subgroups combined84399212241267143314681459
5. Metals and their products919127722202199214824012356
6. Non-metallic minerals and their products—       
  A. Mineral oils1164123515991517159316911659
  B. Coal539108510911091114113381427
  C. Other non-metallic minerals and their products600102313631427140215251595
  A-C. Three subgroups combined821114013561331138015221555
7. Chemicals and manures95486110621086132718211609
      All groups combined748107115841589164918371825

In the next table index numbers are given by classes. These index numbers should be taken for no more than they purport to represent—viz., the movement in wholesale prices of those commodities, covered by the wholesale prices inquiry, which belong to the respective classes. The figure for Class III, for instance, does not purport to show the movement in building costs, nor should that for imported items be confused with the index number of import prices. The table also shows the separate index numbers for imported items and locally produced items included in the wholesale prices series and affords an interesting comparison, particularly since the outbreak of the Second World War. The 1949 index for imported commodities shows an increase of 88.6 per cent. as compared with 1939, while the index for locally-produced commodities advanced by 45.5 per cent. during the same period.

WHOLESALE PRICES.—INDEX NUMBERS BY CLASSES.—BASE: 1926–30 (= 1000)

Year.Consumers' Goods.Producers' Materials, &c.Classes I and II combined.Classes III and IV combined.Locally-produced Commodities.Imported commodities.All Classes combined.
Class I: Foodstuffs.Class II: Non-Foods.Class III: Materials for Building and Construction.Class IV: Materials for other Industries.
1939108810001206105710511090105310841071
1940112111451373121411311249107812811195
1941122812801560130812491364113914391311
1942133514681664137413891438119315811416
1943135016781793146614831539120517421513
1944138117591832150615341579123318001558
1945140117811923152015541610125718271584
1946142217791908152215661608127818211589
1947155717741823160516451653136818591649
1948165119521968187017731892150120891837
1949161219451992186417461892153220441825

Of the total base aggregate expenditure, Class I represents 27.1 per cent., Class II 19.2 per cent., Class III 11.9 per cent., and Class IV 41.8 per cent., while the imported items aggregate 57.7 per cent. of the total.

EXPORT PRICES.—Monthly and annual index numbers of export prices are compiled, based on the declared export values of the principal commodities of New Zealand produce exported. The prices are related to the base period 1909–13 (= 1000), but the weight allotted to each of the various commodities included is the average quantity of that commodity exported during the five preceding export seasons—i.e., years ended 30th June. This system of weighting permits of more reliable comparisons between neighbouring years than over long periods.

Most of the export commodities are homogeneous, but in some instances—e.g., wool—the average export value in any month may be affected by changes in the relative quantities of the various grades or classes exported. This difficulty of later years has been minimized by relating the average prices realized for greasy wool at New Zealand wool sales to the average prices in the corresponding season of a stable year.

Index numbers for calendar years are shown in the next table, compiled for each group on the base 1909–13 (= 1000).

EXPORT PRICES.—INDEX NUMBERS.—BASE: 1909–13 (= 1000)

Calendar Year.Group I: Dairy-produce.Group II: Meat.Group III: Wool.Group IV: Other Pastoral Produce.Groups I-IV: All Pastoral and Dairy Produce.Group V: Agricultural Produce.Group VI: Timber.Group VII: Minerals.Groups 1-VII: All Groups combined.
193912311635109894312901543272919541324
1940132417961505128715011379246522071524
1941134718061505150115271508249822701553
1942138418051505180015631333277923171586
1943143118351677171216271453278323641650
1944156619071720170117111665276323591733
1945179920341720175518461803337924571865
1946186922521897231720241913364725822040
1947218927252460382725592333417125872555
1948240526943134400228342657476725722825
1949227325393419353527802289488824712765

The next table shows export-prices index numbers for all pastoral and dairy produce groups and for all groups combined in respect of each year from 1914 to 1949.

Year.Index Numbers.
All Pastoral and Dairy Produce.All Groups combined.
191410951089
191512511239
191614781460
191716631655
191816911684
191917871776
192018241806
192117251713
192213521363
192316191610
192418061788
192519141893
192615411540
192715291525
192817001683
192916341623
193012791283
1931965984
1932870892
1933867896
193410891109
193510721102
193612281250
193714231440
193813401367
193912901324
194015011524
194115271553
194215631586
194316271650
194417111733
194518461865
194620242040
194725592555
194828342825
194927802765

During the post-war period the export index has risen rapidly, the actual increases amounting to 175, 515, and 270 points in 1946, 1947, and 1948 respectively. In 1949 the effect of the appreciation in August, 1948, of the New Zealand pound to parity with sterling became apparent, the index falling by 60 points, or by 2.1 per cent. If, how-over, prices had been expressed in sterling throughout the index would have risen between 1947 and 1948 by 18.5 per cent. and between 1948 and 1949 by a further 14.2 per cent. These increases reflect, in the main, advances in prices under long-term contracts with the United Kingdom Government, or, in the case of wool, the brisk demand for New Zealand wool displayed at the resumption of auction sales in September, 1946, and repeated in each of the three subsequent seasons. Of the 14.2 per cent. increase (on a sterling basis) between 1948 and 1949 nearly half—6½ per cent.—was on account of wool, 4 per cent. on account of dairy-produce, and 3 per cent. on account of meat.

The fact that the calendar year does not coincide with the farm-production year is especially significant in New Zealand, since the great hulk of export goods are farm-produce. For a number of purposes the next table, giving annual average export prices index numbers for years ended 30th June, will be more useful. As in the previous table index numbers are based upon prices in New Zealand currency.

EXPORT PRICES.—INDEX NUMBERS (JUNE YEARS).—BASE: 1909–13 (= 1000)

Year Ended 30th June,Group I: Dairy-produce.Group II: Meat.Group III: Wool.Group IV: Other Pastoral ProduceGroups I-IV: All Pastoral and Dairy Produce.Group V: Agricultural Produce.Group VI: Timber.Group VII: Minerals.Groups I-VII: All Groups combined.
193912121677110487712911444274318571320
1940131017341457115814561292261421401479
1941133317821565126514981501236822461524
1942137318211505166915541331264723241577
1943141518091580170115891383276223631613
1944143718981720173216581523275523631681
1945174119601720170217971836281224161817
1946180221011720194918811923335725221903
1947206725692165323523391954392725872336
1948239327463012398728112643456025782803
1949226425443075373427112353462024922700

IMPORT PRICES.—A series of import prices index numbers based on the year 1926 (= 100) and weighted in accordance with average quantities imported during the years 1926–30, was instituted in 1933. While the basic data were deficient in many respects, nevertheless the index served a very useful purpose. With the passage of time, however, certain inherent weaknesses in this series became apparent, while information previously lacking in some cases became available.

Accordingly, a revised series of index numbers was computed, based in the case of individual items on average quantities imported during the three years 1936–38. Group weights were instituted in the new series, to accord to the various groups their relative importance, and these were based on the average total value for the respective groups during the three years 1936–38. Even with the improved coverage and method now possible they are not sufficiently accurate to be quoted as other than a three-figure index.

The difficulty, inherent in an index number of imports, of obtaining sufficient coverage to provide a reliable indication of changes in prices for any one group, was overcome in the revised series by the utilization of figures of exports to New Zealand, obtained in detail from the published trade figures of certain overseas countries.

In order to avoid any possible confusion between the import prices index number and the wholesale prices index number for imported commodities, it seems desirable to draw attention to the fact that the price quotations on which the import prices index is based are declared values of commodities for import—i.e., prices in the exporting country plus 10 per cent. to cover freight, &c., expressed in terms of New Zealand currency.

The import prices index also covers some two hundred and fifty items, as compared with approximately one hundred items included in the wholesale prices index for imported commodities.

A comparative table of index numbers of the various related prices series from the year 1928 onward is as follows. All index numbers are quoted on a New Zealand currency basis, and on the base 1936–38 (=100).

Year.Import Prices.Export Prices.Wholesale Prices.Retail Prices (All Groups).
Pastoral and Dairy Produce.All Groups.Locally produced Commodities.Imported Commodities.All Groups.
19281131281241069599110
19291111231201069499110
193011096951029296107
1931102737390909099
193297656684908892
193399656683959057
193498828285949188
193596818292949492
193696929295949495
1937102107107102102102101
1938102101101104103103104
19391029798111104107108
1940118113113113123119113
1941131115115120139131118
1942144118117125152141121
1943159122122127168151124
1944167129128130173156127
1945170139138132176158128
1946190152151134175159129
1947226192189144179165133
1948230213209158201184144
1949210209205161197182146

The following diagram, which is based on the index numbers shown in the preceding table, further illustrates the fluctuations that have occurred in the export and wholesale series.

SHARE PRICES.—Changes in the market value of shares listed on the Stock Exchange give a very sensitive indication of changes in business conditions generally. A series of index numbers of share prices on base: 1926 (= 1000), and instituted in 1932, was published by the Census and Statistics Department for some considerable time, but in conformity with the usual international practice of revising index numbers at intervals, and advancing the base to a later period in point of time, the present revised aeries of index numbers is based on the year 1938. The market-prices—as on the last trading day in each month—of shares of forty-four representative companies, with shares listed on the New Zealand Stock Exchanges, form the basis on which the indices have been computed. The selection of the shares for inclusion in the index number was made with the object of reflecting New Zealand economic conditions; and, consequently, with one or two exceptions, only companies whose business is conducted largely or wholly in New Zealand are included. The index numbers are for ordinary shares, the prices of which vary directly with the profits of the company.

The market prices on which the index numbers are based have been extracted from Stock Exchange lists of individual exchanges prior to September, 1929, and from the list of share prices included in the Stock Exchange Gazette and its successor, the Official Record of the Stock Exchanges of New Zealand, since that date. The prices quoted relate to the last trading day in each month; so that the “monthly” index numbers compiled from these data relate to that day only, while the annual averages represent the averages of the monthly index numbers. Each individual share price, and each group, is weighted in accordance with the number and value of shares held in New Zealand. The index numbers of New Zealand share prices give an indication of changes in share values as compared with the base year. In particular, they are intended to indicate the changes in value of a parcel of representative ordinary shares as compared with their 1938 value. The base adopted in this revised series is the average price ruling during the year 1938 (= 1000).

Shares in industrial companies and in finance, &c., companies have been computed separately, and the annual index numbers from 1928 to 1949 on base: 1938 (= 1000) are as follows: —

Year.Industrial Groups.Finance, &c., Groups.All Groups.
192887913011111
192996013301163
193083511471007
1931674921810
1932667852769
1933804972897
193499610971051
1935110211201112
1936107510431057
1937107310671069
1938100010001000
1939959945952
19401024978999
194110219841001
1942100510141010
1943115611881174
1944124913041279
1945128514001346
1946137216011486
1947144416971570
1948143016091520
1949136815661467

The fluctuations in share prices since 1926 are clearly shown in the accompanying diagram, which is based on the foregoing index numbers.

An indication of movements in the index numbers for individual groups may be gauged from the following tables, the first of which is confined to the industrial groups.

SHARE-PRICES: INDEX NUMBERS BY GROUPS

Base: Average for each group, 1938 (= 1000)

Year.Frozen Meat.Woollens.Gas.Timber.Minerals.Miscellaneous (Industrial).All Industrial Groups.
193990010198521034953988959
1940105512258971022101810351024
1941101212917891051102710571021
19421151141878210509849961005
1943143816178471217105011591156
1944161317539001360108712531249
1945169317468941432109612971285
1946187419419091555108613991372
1947206720058941650126214321444
1948209219558751542132114041430
1949200918908691478132513091368
Year.All Industrial Groups.Banks.Insurance.Loan and Agency.Miscellaneous (Other).All Finance, &c., Groups.All Groups combined.
19399599239738561005945952
1940102493310718561014978999
1941102189511758409929841001
194210058951232895104310141010
1943115698814921095127911881174
19441249105916191201149213041279
19451285109717491269159014001346
19461372115218611446183016011486
19471444128418761729194016971570
19481430117117701715189316091520
19491368107917451709186815661467

NOTE.—Index numbers in the above tables are comparable vertically but not horizontally.

Monthly index numbers of share prices throughout the years 1932, 1935, 1939, 1940, 1945, and 1947 to 1950 are given in the following table, the base being 1938 (= 1000).

Month.1932.1935.1939.1940.1945.1947.1943.1949.1950.

* Interpolated.

Industrial Groups
January6681086956104512401383149613951440
February6321075954104612471430146513771463
March6211071938105212521434142413631469
April6181103941109812671440141413551462
May6301097968101312701447142913581462
June646111294895912761442143913421485
July669113295898813051456143713461479
August7011106939100213211419141613511504
September7381090927103313211431141513641535
October7181111959101913151461141613721533
November69911231004101413001491141113811559
December*66211171022101413051494140314101599
Finance, &c., Groups
January865113694799713151660165315801684
February8241101942100313251704162415621720
March8231107933100313341743157815351716
April8151136921103613551817161515291717
May809112594695813761759165415751742
June812112693491714011734165815481806
July869113995096114251731164515481779
August901115594196414321631156915661809
September920111792798314141621157015671827
October897109994997214041646157515741868
November875109797497215921660158815841906
December*818109297897515111656158416251963
All Groups
January7771114951101912811521157514871562
February7381094947102212901567154514701592
March7321091935102512971589150114491593
April7261121930106413151628151514421590
May728111395698313281603154114661602
June738112094093613451588154814451646
July779113695497313711593154114471629
August811113394098113821525149214591656
September8381105927100613721526149314661681
October817110595399313641553149514731700
November796110998799114011575149914831732
December*748110399899314081575149415181781

Yields on Market Prices of Shares.—A series of index numbers of yields on market prices of New Zealand domiciled ordinary shares has been compiled covering the same companies and using the same group weights as for the share-prices series.

The yield figures forming the basis of the index numbers are in most cases based en those published in the Official Record of the Stock Exchanges of New Zealand, and the monthly figures relate to the market price ruling at the end of the month and the rate of dividend last paid by the particular company.

Average annual index numbers of yields have been compiled back to the year 1929 on base: average for each group, 1938 (= 1000) and are given here for the years 1932 to 1949.

Year.Industrial Groups.Finance, &c., Groups.All Groups.
1932123412781258
1933881890886
1934806777790
1935749813784
1936823860843
1937886884885
1938100010001000
1939104210671055
194099710321016
194199110161005
1942943991969
1943735819781
1944698751729
1945676714697
1946632697664
1947657698677
1948680725703
1949698753726

Monthly index numbers of yields are available as from the beginning of 1945 on base: average for each group, 1938 (= 1000) and are given hereunder for each month of the years 1945 and 1950:—

Month.1945.1950.
Industrial Groups.Finance, &c., Groups.All GroupsIndustrial Groups.Finance, &c., Groups.All Groups.

* Interpolated.

January703747727680723701
February700745724667708688
March698737719662711686
April698725713664712688
May699714707672705688
June688702696666676671
July664694680674690682
August655692675666682674
September652701679657687672
October652705681656684670
November656722689653679666
December*644721682643661652

SUMMARY OF PRICE MOVEMENTS.—The following table gives a summary on base: first quarter, 1949 (= 1000) for the last eleven years available of the movements in the more important series of price index numbers.

Year.Retail (Linked Series).Wholesale.Export.Import.*Share Prices, All Groups.
Food.All Groups.Locally-produced Items.Imported Items.All Groups.All Pastoral and Dairy-produce.All Groups.

* Base: 1949 (= 100).

193975774870053059048349649648
194077578271662765856257156680
194179581075770472257158262682
194281183879377378058559468688
194381685680185283360961876799
194482987281988185864064979871
194582988483589487369169981916
1946830891849891875757764901012
19478819199099099089579571081069
194899599299810221012106010591101035
19491023100910181000100510401036100999

Chapter 38. SECTION 38—WAGE-RATES AND HOURS OF LABOUR

THE material used in the compilation of statistics of wage-rates in New Zealand is, with certain exceptions, taken from the awards of the Arbitration Court. It is recognized that the rates specified in such awards are minimum rates, and that wages may in some cases be above the prescribed minima, so that a rise or fall in the award rates does not necessarily involve an immediate change in the wage-rates of those workers who are being paid more than these rates. Nevertheless, for the purpose of tracing the movement in wage-rates over any considerable apace of time, the award rates form a more reliable basis than any information which could be collected directly from employers or trade-union secretaries as to the ruling or predominant rates in any industry. Prior to the passing of the Agricultural Workers Act, 1936, no fixed rates of wages for farm employees existed; and for this group figures of ruling wage-rates were reported by Inspectors of Factories attached to the Labour and Employment Department.

The Industrial Conciliation and Arbitration Amendment Act, 1932, contained, inter alia, a provision that, in the event of the parties to an industrial dispute being unable to come to agreement before the Conciliation Council, the award lapsed. In cases where district awards lapsed under this provision figures were interpolated, based on fluctuations in corresponding rates in other districts. The Industrial Conciliation and Arbitration Amendment Act, 1936, restored the full powers of the Court (see next section, Labour Laws and Allied Legislation).

The award rates for the four principal districts—Northern, Wellington, Canterbury, and Otago and Southland—are in general taken as being representative of the ruling wages throughout New Zealand. For such industries as are carried on in the towns these rates are quite satisfactory; in cases where the important centre of an industry is situated outside the geographical boundaries of the four principal districts the award rates for that centre are used. For instance, the rates used for coal-mining and sawmilling in the Canterbury District are those prescribed by the awards for the Westland Industrial District.

The system of compilation of wage-rates index numbers was revised in 1936, and the index numbers appearing in the following pages are on the same base period as in the case of the wholesale-prices index—viz., the average of the five years 1926–30 (=1000).

WAGE-RATES OF ADULT MALE WORKERS: Method of Weighting.—The weights used in the computation of the indices were derived mainly from three sources—viz., (1) the occupations statistics of the 1926 census, (2) the annual factory production statistics, and (3) the membership rolls of trade-unions registered under the Arbitration Act. Weights have been allocated to the individual occupations included in these computations, and, although in some few cases absolute accuracy in weighting could not be hoped for, the data were sufficiently accurate for the purpose in view, since minor differences in weighting do not affect the accuracy of the index number. Occupations are grouped into industries, with an appropriate weight for each occupation and each industry; while industries are grouped into fourteen principal industrial groups, these also being given appropriate weights. The weights for the individual occupations and industries have been derived from the census or the factory production statistics; while the industrial-group weighting has been taken partly from these sources and partly from the membership of trade-unions registered under the Arbitration Act. In the case of workers on the land, use was also made of information formerly obtained by means of the annual collections of agricultural and pastoral statistics. Full details of the weighting appeared in the Statistical Report on Prices, &c., for the year 1935.

Nominal Weekly Wage-rates Index Numbers.—Index numbers of annual averages of nominal weekly wage-rates of adult males over the period 1914–49 are given in the following table. The base in this ease is the weighted average of weekly wage-rates for adult males in 1926–30 (= 1000).

NOMINAL WEEKLY WAGE-RATES INDEX NUMBERS (ADULT MALES), ALL INDUSTRIAL GROUPS

Base: 1926–30 (= 1000)

Year.Index Number.
1914623
1915646
1916671
1917711
1918746
1919810
1920913
1921988
1922957
1923921
1924929
1925952
1926966
1927985
19281016
19291017
19301017
1931942
1932864
1933833
1934839
1935858
1936950
19371036
19381081
19391100
19401130
19411170
19421222
19431261
19441274
19451381
19461434
19471489
19481588
19491678

The wage-rates on which the foregoing index numbers are based are gross rates, no account having been taken of the fact that from August, 1931, wages have been subject to certain forms of taxation not previously in operation. The first of these taxes was the “emergency unemployment charge,” which was at the rate of 1d. for every 6s. 8d. of wages and of other income, with certain specified exemptions. This rate remained until the end of April, 1932, when it was increased to 1d. for every 1s. 8d. of wages, &c. Subsequent changes in the rate of this tax, which was later called “employment promotion taxation” were reductions to 1d. for every 2s. as from 1st October, 1934, and to 1d. for every 2s. 6d. from 1st October, 1935. The latter rate remained in force until the employment promotion taxation was superseded by the social security charge, which came into operation on 1st April, 1939. The rate of this charge was 1d. for every 1s. 8d. A further tax on wages, &c., the national security tax, for the purposes of war finance, was imposed as from 21st July, 1940, the rate being 1d. for every 1s. 8d., at which it remained until 10th May, 1942, when it was increased to l ½d. for every 1s. 8d. This rate continued in force until 12th May, 1946, when it was reduced to ½d. for every 1s. 8d., but at the same time, the social security charge was raised to l ½d. for every 1s. 8d. The national security tax was finally abolished as from 21st April, 1947. A summary of these taxes on wages since their introduction is as follows: —

1st August, 1931–30th April, 19321d. for every 6s. 8d.
1st May, 1932–30th September, 19341d. for every 1s. 8d.
1st October, 1934–30th September, 19351d. for every 2s. 0d.
1st October, 1935–31st March, 19391d. for every 2s. 6d.
1st April, 1939–20th July, 19401d. for every 1s. 8d.
21st July, 1940–10th May, 19421d. for every 10d.
11th May, 1942–12th May, 19461d. for every 8d.
13th May, 1946–20th April, 19471d. for every 10d.
21st April, 19471d. for every 1s. 1⅓d.

In explanation of the movements recorded in the preceding table of index numbers, the more important changes in rates of wages during the last ten years are now mentioned, the changes over the period 1919–36 being quoted on pages 636–637 of the 1947–49 Year-Book. In this connection reference should be made to the distinctions between the “basic wage,” the “minimum wage,” “standard rates of wages,” and “general orders” which are elaborated on pages 750–751. The index numbers of rates of wages shown above, being based almost exclusively on award rates, have not been influenced by either “basic wage” rates or the “minimum wage” rates which have, in effect, superseded the basic wage; “minimum wage” rates themselves having no practical application where awards exist. The effects of standard rates pronouncements and of general orders are, on the other hand, clearly visible.

As from the 15th December, 1942, rates of remuneration, already brought under control by the Rates of Wages Emergency Regulations 1940, were stabilized by the Economic Stabilization Emergency Regulations 1942 (see page 755). General orders and, later, pronouncements of standard rates could be made under these regulations and their amendments. Nevertheless, in practice, stabilization of wage-rates, even apart from general increases granted by the Court of Arbitration in either of these ways, was not absolute. The Court, in making or amending any award, was, from 1945 to 1950, required to have regard to the restoration or preservation of a proper relationship with other rates of remuneration, not excluding actual rates over which the Court had no jurisdiction. The result was that although the index ignores the margin—a margin subject to continual fluctuation—between actual rates and minimum award rates, it did, during the period of stabilization, continue to show a certain gradual upward movement as awards were amended from time to time. Regulations made in 1950 under the Economic Stabilization Act, 1948, omit the above-mentioned requirement as to relationship with other rates as well as the provision for pronouncements of standard rates, and at the same time abolished control of maximum rates.

From the 12th August, 1940, an increase of 5 per cent. was granted by general order in all rates of remuneration prescribed by awards, industrial agreements, and apprenticeship orders.

A further general order awarded, as from the 7th April, 1942, a second increase of 5 per cent.—on the already increased rates—but with certain maxima (i.e., 5s. weekly for adult males, 2s. 6d. weekly for adult females, and 1s. 6d. weekly for juveniles).

The standard rates pronounced in 1945, 1947, and 1949 are quoted on page 752, together with those already current when the general orders of 1940 and 1942 took effect. As regards the inclusion of these general orders in standard rates, the 1945 standard rates were net rates and those of 1947 and 1949 gross rates. Amendments to awards consequential upon these alterations in standard rates took effect from the 1st April, 1945, the 1st October, 1947, and the 1st June, 1949, respectively.

From the 8th May, 1950, all rates of remuneration provided for in awards and industrial agreements were, by interim general order dated 10th June, 1950, again increased by 5 per cent., but with maximum increases of 7s. weekly for adult males and 4s. 9d. weekly for other workers. The Court, in granting this increase, stated that it had to some extent anticipated the effects, direct and indirect, likely to follow the withdrawal and reduction of subsidies announced the previous month, the order being made under powers conferred by the Economic Stabilization Regulations 1950, Amendment No. 1, which authorized the Court to make a general order of its own motion, prescribing a date of commencement earlier than the date of the order but not earlier than the 8th May, 1950, and providing that such an order is to be disregarded in determining the time when a general order made on application is to take effect. This interim order has now been superseded by a further general order made on the 30th January, 1951, and taking effect from the 15th February, 1951. The new order embraces the revocation of the interim order and the substitution of an increase of 15 per cent.—without any prescribed maximum—in all rates of remuneration provided for in awards and industrial agreements (except in certain specified awards which had been made since the date of the interim order).

The next table shows the index numbers of nominal weekly wage-rates of adult males for each industrial group and for all groups combined. Where board and (or) lodging is a usual perquisite attached to any occupation, an allowance estimated to cover the value of such has been added to the money wage-rate. The base in this instance is the New Zealand weighted average wage-rate for all groups combined, 1926–30 (= 1000).

NOMINAL WEEKLY WAGE-RATES INDEX NUMBERS (ADULT MALES)

Base: All groups combined, 1926–30 (= 1000)

Industrial Group.1914.1939.1941.1942.1943.1944.1945.1946.1947.1948.1949.
Provision of—           
Food, drink, &c.6651266134413901411141315241533153316781802
Clothing, footwear, and textiles6071122120412561290129913991464151716011702
Building and construction6541126119712411262127213771413147815531650
Power, heat, and light6561194126312991313131614271474153516161695
Transport by water6541217143415131637168017391763178017961898
Transport by laud6171116120212621298133314231460147015791654
Accommodation, meals, and personal service6601077111911431154115412451326140514751583
Working in or on—           
Wood, wicker, sea-grass, and fibre6341179125112951310131014181445153516321725
Metal7171241130313461362136414691504156016511745
Stone, clay, glass, and chemicals5841139120912541268126913701401143815151599
Paper, printing, &c.7571250131313551369137014841523160216711773
Skins, leather, &c.6001116124712911305130513931384144114991589
Mines and quarries6641117119612791317133014131445154616471727
The land (farming pursuits)519859874927992100211391259132214701547
All groups combined6231100117012221261127413811434148915881678

NOTE.—The index numbers in this table are comparable both vertically and horizontally.

The distinction of having the highest index number, which was surrendered by the “paper, printing, &c.,” group to the “food, drink, &c.,” group in 1938, was in 1941 acquired by the “transport by water” group, and has been held by the same group in each subsequent year.

The lowest index for 1949 was that for the group “working on the land” (1547), followed by “accommodation, meals, and personal service” (1583). These two groups have consistently occupied the same positions relative to the other groups each year since 1926. The former gained perceptibly on the latter, however, in 1948. This was principally due to the adoption of a new formula (see page 754) for determining shearers' wages for the 1948–49 season, coupled with a sharp rise in wool prices for the 1947–48 season on which the formula was based. In both these groups, as also in the “transport by water” group, the estimated value of board and lodging is, where applicable, added to the money wage-rate in order to make a legitimate comparison with other industries. Also included in the wages for workers in the “transport by water” group is a sea-going allowance of £6 per calendar month where applicable. In the case of waterside workers (an important subgroup of the “water transport” group) these allowances are not, of course, applicable.

Movement in Individual Groups.—The index numbers in the preceding table being on a national all-groups base, comparisons between movements in individual groups cannot be readily made; an increase in a group in which the index numbers are consistently low being considerably smaller numerically than would be an increase of the same percentage in one where the index numbers are higher. The following table brings out the movements in the various groups more clearly. The respective bases are the New Zealand average weekly wage-rates for each industrial group 1926–30 (=1000).

NOMINAL WEEKLY WAGE-RATES INDEX NUMBERS (ADULT MALES)

Base: Each group separately, 1926–30 (= 1000)

Industrial Group.1926–30.1914.1939.1945.1946.1947.1948.1949.
Provision of—        
  Food, drink, &c.1000601114413771385143115161629
  Clothing, footwear, and textiles1000596110013721435148815701669
  Building and construction1000637109713421376144015131608
  Power, heat, and light1000600109013031346140214761547
  Transport by water1000592110015721594160916241716
  Transport by land1000588106313551390140015041575
  Accommodation, meals, and personal service1000680110912811365144615181629
Working in or on—        
  Wood, wicker, sea-grass, and fibre1000588109413161341142515151601
  Metal1000647112013261357140714901574
  Stone, clay, glass, and chemicals1000576111213391368140514801563
  Paper, printing, &c.1000637105012471279134614041489
  Skins, leather, &c.1000574106813331324137914341520
  Mines and quarries1000637107113551386148315801656
  The land (farming pursuits)1000675111614801637171919122011
All groups combined1000623110013811434148915881678

Care must be exercised in drawing inferences from this table, for, while horizontal comparisons are quite valid, the vertical comparison between the various groups is valid only in so far as it shows in which groups the greater or the smaller movements have occurred. For example, the 1949 index for the “paper, printing, &c.,” group is 522 points below that for “the land” in this table, but 226 points above in the previous table on the all-groups base, the reason being that wages of workers in the former group have increased to a lesser degree than have those in the latter, although the actual rates of wages are still considerably higher.

Indices of Hourly Wage-rates.—Legislative reductions in weekly hours of labour during recent years rendered it desirable that indices of hourly wage-rates should be made available. The indices given hereunder show clearly the effect of the shorter working-hours prescribed mainly by the 1936 legislation, the Shops and Offices Amendment Acts of 1945 and 1946, and the Factories Amendment Act, 1945. Further details of these changes will be found on pages 724–725. It will be noticed that these indices (as is also the case in respect of the indices of weekly hours of labour) cover thirteen only out of the fourteen industrial groups commonly adopted, since working-hours on farms (which would be essential to the fourteenth group) cannot for this purpose be satisfactorily treated statistically. The base is the New Zealand average hourly wage-rate (computed as described after the following tables) for all groups combined, 1926–30 (= 1000).

HOURLY WAGE-RATES INDEX NUMBERS (ADULT MALES) Base: All groups combined, 1926–30 (=1000)

Industrial Group.1914.1939.1945.1946.1947.1948.1949.
Provision of—       
  Food, drink, &c.548125315501654170918101945
  Clothing, footwear, and textiles568118114791580163817281837
  Building and construction619121614861525159516761781
  Power, heat, and light579128315331583165717451829
  Transport by water560124817841814189119082016
  Transport by land552115314701514158717041785
  Accommodation, meals, and personal service466113013071417151715921709
Working in or on—       
  Wood, wicker, seagrass, and fibre597127315301559165717621861
  Metal665134015861623168317821883
  Stone, clay, glass, and chemicals532122114721511155216351726
  Paper, printing, &c.747134916021644172918031913
  Skins, leather, &c.540115814421493155516171715
  Mines and quarries633120515251559166818502020
  All groups combined589123515361586165917521858

The same table is now given with a different base—viz., the New Zealand average hourly wage-rate for each group individually, 1926–30 (=1000).

HOURLY WAGE-RATES INDEX NUMBERS (ADULT MALES)

Base: Each group separately, 1926–30 (= 1000)

Industrial Group.1926–30.1914.1939.1945.1946.1947.1948.1949.
Provision of—        
  Food, drink, &c.1000533121915081609166217611892
  Clothing, footwear, and textiles1000583121115171621168017731884
  Building and construction1000631123915151554162517081815
  Power, heat, and light1000585127715261576164917361820
  Transport by water1000584130118591890197019882101
  Transport by land1000579120815401586166217851870
  Accommodation, meals, and personal service1000534129314961622173618221955
Working in or on—        
  Wood, wicker, seagrass, and fibre1000585125315061536163217351833
  Metal1000611123214581493154816391731
  Stone, clay, glass, and chemicals1000571129815651607165017381835
  Paper, printing, &c.1000623112613371372144315051597
  Skins, leather, &c.1000573122915301585165117161820
  Mines and quarries1000627119415111545165318332001
  All groups combined1000589123515361586165917521858

The figures shown in the last two tables differ from those published in the 1946 and earlier issues of the Year-Book. It is considered logical that the movement in hourly rates combined with that in weekly hours worked at these rates should give the movement in weekly rates; but by this criterion the series published previously were anomalous. Accordingly the former method of calculating index numbers of hourly rates was discarded, the figures now adopted being derived from average hourly rates calculated in every case by dividing the corresponding average weekly rate by the average-number of hours worked in the week.

WAGE-RATES OF ADULT FEMALE WORKERS.—Index numbers showing move meats in wage-rates of women workers are compiled, using the award rates of the Arbitration Court as representative of the ruling rates of wages. A much smaller list of occupations is used than is the case in computing index numbers of wage movements for male workers. Although only fifteen occupations are taken into consideration in the case of women workers, these occupations normally cover a large proportion of the total women in industry—more than sufficient to constitute a representative sample for measuring movements in wages. With the extension of the employment of women under war conditions, however, the sample for those years was not so representative as previously. The weights used have been computed from data as to occupations from the 1926 census results.

The following table shows index numbers of women's wage-rates on base: New Zealand all-groups weighted average, 1926–30 (= 1000), divided into the principal industries in which women workers are normally engaged. It should be noted that domestic servants employed in private homes, numerically an important branch of women workers at one time, are not represented in the compilation of these indices; also, that in the case of hotel workers (where board and lodging is a usual perquisite) and of restaurant employees (where meals are usually provided) the value of such additions has been added to the money-wage rates.

NOMINAL WEEKLY WAGE-RATES INDEX NUMBERS (ADULT FEMALES)

Base: All groups combined, 1926–30 (= 1000)

Industrial Group.1914.1939.1945.1946.1947.1948.1949.
Provision of—       
  Food, drink, &c.39095012911331146516281742
  Clothing, footwear, and textiles534102914261509157717351872
  Accommodation, meals, and personal service836133416011672177519132069
Working in paper, printing, &c.487111013311365144615651690
All groups combined602110314591533161417641906

Movements in Individual Groups.—Movements within the various groups are brought out more clearly in the next table, the base in this case being the New Zealand weighted average weekly rate of each group, 1926–30 (= 1000). As with the similar table relating to male wage-rates (p. 715) horizontal comparisons are valid, but vertical comparisons merely show in which groups the greater or smaller movements have occurred.

NOMINAL WEEKLY WAGE-RATES INDEX NUMBERS (ADULT FEMALES)

Base: Each group separately, 1926–30 (= 1000)

Industrial Group.1926–30.1914.1939.1945.1946.1947.1948.1949.
Provision of—        
  Food, drink, &c.1000459112415281576173419272061
  Clothing, footwear, and textiles1000578112015521641171518882037
  Accommodation, meals, and personal service1000670107412891346142915401666
Working in paper, printing, &c.1000559105512661298137514881607
All groups combined1000602110314591533161417641906

WEEKLY WAGE-RATES: ALL ADULT WORKERS.—A series of index numbers has been computed on the base 1926–30 (= 1000) for all adult workers; this varies but little from the index for adult males, owing to the preponderance of men in industry. Index numbers for the last twelve years available are:—

NOMINAL WEEKLY WAGE-RATES INDEX NUMBERS (ADULT MALES AND FEMALES COMBINED), ALL INDUSTRIAL GROUPS Base: 1926–30 (= 1000)

Year.Index.
19381079
19391100
19401132
19411171
19421224
19431265
19441277
19451389
19461446
19471503
19481607
19491702

EFFECTIVE WEEKLY WAGE-RATES.—The index numbers quoted in the foregoing paragraphs relate to nominal weekly wage-rates only—that is, they are based on actual or equivalent money-rates without any allowance being made for changes during the period under review in the prices of those goods and services which are purchased out of wages earned. It is obvious that this factor is of considerable importance; for a rise in wage-rates may be offset by a fall in the purchasing-power of the monetary unit, while, on the other hand, a fall in money wages may be offset by a rise in the purchasing-power of money. Changes in the index numbers of retail prices (refer Section 37) are inversely proportional to changes in the purchasing-power of the pound on the retail market; hence index numbers of effective (or “real”) wages-rates are arrived at by dividing the index numbers of nominal wage-rates by the corresponding all-groups index numbers of retail prices and multiplying by the base value of 1000.

The following table accordingly shows a comparison of nominal and effective weekly wage-rates of adult male and female workers in each of the years 1939–49. It is a continuation of that published in the 1946 and earlier editions of the Year-Book. The base of the index numbers is in each case the average of the five years 1926–30 (= 1000).

Year.Retail Prices (All Groups).Nominal Weekly Wage-rates.Effective Weekly Wage-rates.
Males.Females.Males.Females.
19399901100110311111114
194010351130113710921099
194110731170117410901094
194211091222123411021113
194311341261129211121139
19441155127129711031123
19451170138145911801247
194611801434153312151299
194712171489161412241326
194813141588176412091342
194913361678190512561426

The continuous series of retail prices index numbers required for the foregoing table has been obtained by linking the consumers' price index to the earlier series on the base 1926–30.

In making use of these results it should not be overlooked that the index numbers of nominal wage-rates apply only to full-time employment at award rates of pay. They do not take into account either on the one hand above-award rates or overtime earnings, or on the other short-time deductions or wages-tax imposed (a summary of the rates of wages-tax in force during different periods will be found on page 712.) Nor do the retail-prices index numbers take cognizance of all classes of household expenditure; income-tax, charitable and other gifts, domestic help, &c., and particularly expenditure on alcoholic liquors and private motoring, being omitted. Having regard to opportunities for spare-time gainful occupation, a comparison with movements in the index numbers of hours of labour shown later in this section is also relevant.

To the extent that female wages are not normally devoted to purchasing the full range of household requirements the results of employing the all-groups retail-prices index to determine effective wages for females are subject to certain limitations. Their general application is, however, still valid.

WAGE-RATES OF JUVENILE WORKERS.—During 1936, the compilation of index numbers of wage-rates of juveniles was undertaken for the first time, and the results appeared in the introductory notes to the 1935 and 1936 issues of the annual Statistical Report on Prices, &c.

Owing to the fact that a number of industries utilize juvenile labour to a limited extent only, or not at all, it has not been possible to cover a very wide field, but thirty-two occupations representing twelve out of the fourteen industrial groups are included in the case of juvenile males, and four occupations representing three industrial groups in the case of juvenile females.

Wherever possible, the weekly wage-rate adopted in the compilation of the indices is that provided for a worker having attained the age of eighteen years or having completed three years' service, according to the terms of the award.

In the table which follows the base is, in each case, the New Zealand all-groups weighted average of weekly wage-rates, 1926–30 (= 1000).

NOMINAL WEEKLY WAGE-RATES INDEX NUMBERS (JUVENILE WORKERS)

Base: All groups combined, each sex separately, 1926–30 (= 1000)

Industrial Group.1914.1939.1945.1946.1947.1948.1949.

*No provision made in awards for juvenile females.

Juvenile Males
Provision of—       
  Food and drink665126016611712181119352089
  Clothing, footwear, and textiles544103214441732180119372091
  Building and construction592107315821866194920792260
  Transport by land609115614791509147515331657
  Accommodation, meals, and personal service562113614771740181719232075
Working in or on—       
  Wood, wicker, seagrass, &c.554115615581755183019612089
  Metal487120916591813193520552193
  Stone, clay, glass, and chemicals511129415291570163517041819
  Paper, printing, &c.60997416391834197221742304
  Skins, leather, &c.746120915421540162516821866
  Mines and quarries1142202826452706280931543337
  The land (farming pursuits)680121716801838203422352387
All industrial groups619119116531819194921082258
Juvenile Females
Provision of—       
  Food and drink512128715811641182920102217
  Clothing, footwear, and textiles640131817081866200022042362
Working in paper, printing, &c.*138017551837196622072372
All industrial groups616132016931824196621712338

It will be seen that the fluctuations in the all-groups indices for juvenile males differ appreciably from the corresponding figures for adult males, this being largely due to the influence of movements in farm wages, which have a weight of approximately 36 per cent. of the total in the case of juveniles, as against 23 per cent. in the case of adults. The substantial increases in the all-groups indices for juvenile males in 1945 and subsequent years are largely the result of a Commission of Inquiry into Apprenticeship in 1945, the findings of which were later validated by the Apprenticeship Amendment Act, 1946, and also incorporated in the Apprentices Act, 1948. The scale of wages in apprenticeship orders is now based on a percentage of the ruling minimum rates for journeymen in the industry concerned. Consequently, the wage-rate index numbers for juvenile males will now tend to move in sympathy with the index numbers of male adult wage-rates.

AVERAGE RATES OF WAGES.—Publication of average rates of wages as prescribed in awards of the Court of Arbitration, which was suspended from considerations of space with the 1941 issue of the Year-Book, is resumed in the present issue.

The following table shows the New Zealand average minimum weekly wage-rates in various occupations for 1914, 1939, and each of the years 1945–50. The figures given are simple averages for the four principal industrial districts as at the 31st March, in the years indicated. The rates shown throughout this table are money-rates, and do not include any allowance for the value of board and lodging which is a usual perquisite of the employment of some workers—e.g., seamen and hotel employees. Further Information on this latter point is available in the note given at the end of the table.

Occupation.Average Wage (Four Principal Districts) at 31st March,
1914.1939.1945.1946.1947.1948.1949.1950.

* Increased by 5s. per week as from 7th April, 1942, under Rates of Wages Emergency Regulations 1940.

*Not available.

Adult Males
Bakers—s.d.s.d.s.d.s.d.s.d.s.d.s.d.s.d.
  Journeymen5501150125913291380148014801614
  Labourers480950104911701170127012701388
Butchers—                
  First shopmen726123213771507152111643165017711
  Second shopmen62611081246137514051519151101649
Butter-factory employees—Churning and buttermaking: General hands450900106411191223127013501426
Flour-milling—                
  Kilnmen480994110012231276143414341550
  Assistant smuttermen480914102111153120613510135101476
  Rollermen5601034117012931346155015501684
Meat-freezing—                
  Slaughtermen, per 100 sheep2764505010*562*562*600700736
  General hands5401138136313291329143414841550
Meat preserving—                
  Boners6201320157515201520161816681734
  General hands5961100136313291329143414841550
Sausage-casing making: General hands5881174140613631363146815501618
Aerated water and cordial making—                
  Cordialmakers5899610115312061206132313231450
  Bottle-washers4508831041011111111125912591387
Brewing labourers477945111412621262136414331480
Tailors—                
  Journeymen5391012120613241361143515601568
  Factory hands5509261128124111310141014761544
Boot operatives526918112812761310141814181550
Woollen-mills—                
  Spinners5101034113612591363143414681600
  General hands4669341021111531206126813181434
Building—                
  Bricklayers68511501259140814081484148416211
  Carpenters and Joiners6431126123213791379150015841634
  Plasterers679114712541380141111497149101624
  Plumbers (competent)660110012321355141415181601016510
  Builders' labourers526934102111153129813611140101494
  General labourers5269341021111531206125112711369
Sawmilling—                
  Engine-drivers54011001206132914331534157111647
  Sawyers53011261232136314691568161316711
  Tailers-out43996810710120613101401014551521
  Yardmen, head55811001206132914331534157111647
  General hands510950106111701276137614211489
Boatbuilding: Shipwrights628126613710141414141523158111673
Metal-works, &c.—                
  Blacksmiths, floormen6171100120613291380146814681600
  Boilermakers, journeymen6281100120613291329143415181568
  Iron and brass moulders6471100120613291380143414501592
  Tinsmiths, journeymen6281100120613291341143414631568
  Engineering fitters, &c.6471100121013331333148814881626
  Electrical workers6110110512121331013310147115001634
  Motor mechanics6481100120613291329143414341568
Skin and leather workers—                
  Curriers58010501264131013631401014681542
  General hands496900109611531206125012841368
Mineral and stone workers—                
  Brickmakers5311108412110132913411432145815410
  General hands4699501071011891201128713081403
Mining (coal)—                
  Surface—                
  Tippers53791311501226134213711137111479
  Labourers54387811031184134213711137111479
  Miners (on day wages, per shift)1142010266280302330330356
  Truckers5511976120812761384152615261650
Minim: (gold): Miners in rises or winzes with machines64610131114123712810133913391455
Quarrymen5289421049117012401284130514311
Agricultural and pastoral workers—                
  General farm hands2644505767508509509501066
  Threshing-mill hands, per hour13283034343737310
  Ploughmen3044635767508509509501066
  Shearers (per 100 sheep shorn)200286330350360380456466
  Shepherds3125265767508509509501066
  Wool-pressers300846980104010701130163216610
  Dairy-farm hands2305268008501066106611301266
Railways—                
  Engine-drivers, average third and sixth years7501200140914091442154216261676
  Firemen, average second and ninth years60010211128912891318141815001534
  Guards, average first and third years6301139135513551389148915711613
Tramways—                
  Motormen53610131179129812910143414341550
  Conductors477957111912361236136813681484
Shipping and cargo-working—                
  Assistant stewards, first grade258724142414241424135111351114911
  Assistant stewards, second grade188700139111391113911133013301448
  Chief cooks60810610178717871787172117211856
  Second cooks374882159015901590152315231658
  A.B. seamen374891154515451545148214821600
  Ordinary seamen, first-class28060101225122512251156115612411
  Waterside workers—                
  Ordinary cargo6241068126813841384146815501600
Hotel workers—                
  Chefs900112012811331138414311500159
  Waiters31165077582888292810001044
Miscellaneous—                
  Softgoods assistants (male)5501026120713411341144114411577
  Grocers' assistants5001026115312891289138913891505
  Warehouse storemen489900107511931243130613061450
Adult Females
Biscuit and confectionery factory workers2004906036887311840840940
Tailoresses (factory): Journeywomen276500603709760860910970
Boot operatives27650106211735760860860960
Woollen-mill workers25050057870976085108510968
Hotel workers—                
  Cooks2955807107608139209801038
  Housemaids1723664305135311614660714
  Waitresses2253664305135311614660714
Restaurant workers—                
  Cooks42687096010701126117612261276
  Waitresses311486537647726776826876
  Pantrymaids292486537647726776826876
Printing workers*58663117097098098210910 
Softgoods assistants2765767358508509509501050
Occupation.Average Wage (Four Principal Districts) at 31st March,
1914.1939.1945.1946.1947.1948.1949.1950.

* Not available.

 s.d.s.d.s.d.s.d.s.d.s.d.s.d.s.d.
Juvenile Males
Bakers' apprentice: After three years' service276650699846871196296210410
Butchers' assistant: Eighteen years of age30104955546336510726726800
Butler and cheese factory: Youth, eighteen years of age3005266111657750800875916
Flour-mill: Youth, after three years' service270500593672672736736810
Meat freezing and preserving: Youth, eighteen years of age256550650646646726770826
Aerated water and cordial manufacture: Youth, eighteen years of age2504675311578578660660725
Tailoring, &c.: Apprentice, after three years' service1924004367227510832870911
Boot and shoe factory: Apprentice, after three years' service2504004897397510837837915
Woollen-mill: Youth, eighteen years of age22646850664668075107510850
Bricklayers' apprentice: After three years' service242426462814814876876955
Carpenters' apprentice: After three years' service24643250976107610847896991
Plasterers' apprentice: After three years' service240426515800816876876955
Plumbers' apprentice: After three years' service19540043676108008769259710
Sawmill: Youth, eighteen years of age2564895285611622672698740
Engineering: Apprentice, after three years' service20050055476107610866866965
Brick, tile, &c., works: Youth, eighteen years of age2105355846466510691071117610
Tannery: Youth, eighteen years of age3345135811632664686716756
Coal-mining: Trucker, eighteen years of age465829103611101155129712971426
Agriculture and dairying: Youth, eighteen years of age* 310439513626656680773
Softgoods assistant: After three years' service2004505811669669729729930
Grocers' assistant: After three years' service250426699750750806832898
Juvenile Females
Biscuit and confectionery factory: Assistant, after three years' service1604164515211582641064107410
Boot and shoe factory: Assistant, after three years' service190400436489572626626710
Woollen-mill: Worker, after three years' service226410468599646700700800
Clothing factory: Improver, after three years' service192430504572646720746790
Printing trade: Worker, after three years' service* 446483593593709730790

NOTE.—The following perquisites (as assessed for statistical purposes) as at the 31st March, 1950, should be added to the listed occupations: General farm hands, ploughmen, shepherds, dairy-farm hands, and youths (eighteen years of age) employed on agricultural and dairy farms, 26s. 9d. per week for board and lodging; shearers and wool-pressers, 6s. per day for rations; assistant stewards (first and second grade), chief and second cooks, A.B. seamen and ordinary seamen (first class), 32s. per week as value of board and lodging; and hotel chefs and waiters, female cooks, housemaids, and waitresses, 32s. per week as value of board and lodging.

HOURS OF LABOUR.—The following table shows index numbers of the number of hours constituting a full week's work in the various industrial groups for 1914, 1939, and for each year from 1945 to 1949. The material from which the index numbers have been compiled has been taken from the awards of the Arbitration Court in most cases; but where hours were not prescribed in the awards, reference was made to the Factories Act and the Shops and Offices Act. It has been necessary to omit the agricultural and pastoral workers group from these computations, since, with certain exceptions (and those only in recent years), hours of farm labour are not fixed. For each sex, the base is the New Zealand weighted average for all industrial groups combined, 1926–30 (=1000).

INDEX NUMBERS OF AVERAGE HOURS OF LABOUR

Base: All groups combined, each sex separately, 1926–30 (= 1000)

Industrial Group.1914.1939.1945.1946.1947.1948.1949.
Provision of—Adult Males
  Food and drink1135944919866866866866
  Clothing, footwear, and textiles1000888884866866866866
  Building and construction988866866866866866866
  Power, heat, and light1061870870870866866866
  Transport by water1093911911909880880880
  Transport by land1044905905901866866866
  Accommodation, meals, and personal service1325891890875866866866
Working in or on—       
  Wood, wicker, seagrass, &c.993866866866866866866
  Metal1008866866866866866866
  Stone, clay, glass, and chemicals1026872870866866866866
  Paper, printing, &c.948866866866866866866
  Skins, leather, &c.1039901903866866866866
  Mines and quarries981866866866866832799
All groups combined1041888885877867866864
Provision of—Adult Females
  Food and drink976867867867867867867
  Clothing, footwear, and textiles1006901899867867867867
  Accommodation, meals, and personal service1217891891877867867867
Working in paper, printing, &c.976867867867867867867
All groups combined1054896894870867867867

NOTE.—The index numbers in each section of the above table are comparable both vertically and horizontally.

The index numbers in the foregoing table being on a national all-groups base, comparisons between movements in individual groups cannot be readily made. The following table brings out the movements in the various groups more clearly, the respective bases being the New Zealand average for each industrial group, 1926–30 (=1000).

INDEX NUMBERS OF AVERAGE HOURS OF LABOUR

Base: Each group separately, each sex separately, 1926–30 (= 1000)

Industrial Group.1826–30.1914.1939.1945.1946.1947.1948.1949.
Provision of—Adult Males
  Food and drink10001128938914861861861861
  Clothing, footwear, and textiles10001023908904886886886886
  Building and construction10001011886886886886886886
  Power, heat, and light10001041854854854850850850
  Transport by water10001014845845843817817817
  Transport by land10001016880880877842842842
  Accommodation, meals, and personal service10001275857856842833833833
Working in or on—        
  Wood, wicker, seagrass, &c.10001002874874874874874874
  Metal10001058909909909909909909
  Stone, clay, glass, and chemicals10001009857855851851851851
  Paper, printing, &c.10001021933933933933933933
  Skins, leather, &c.10001003869871835835835835
  Mines and quarries10001016897897897897862828
  All groups combined10001041888885877867866864
Provision of—Adult Females
  Food and drink10001000889889889889889889
  Clothing, footwear, and textiles10001016911908877877877877
  Accommodation, meals, and personal service10001169856856843833833833
Working in paper, printing, &c.10001013900900900900900900
All groups combined10001054896894870867867867

NOTE.—Vertical comparisons are indicative merely of the relative changes in the length of the working-week in the different industries, not of the actual respective number of hours for the different industrial groups.

The Industrial Conciliation and Arbitration Amendment Act, 1936, contained, inter alia, provisions aimed at the establishment of a forty-hour week, without reduction in the weekly wage-rate. New awards were to contain a provision to this effect, except that the Court might fix longer hours, but was required to state its reasons for so doing. Awards in existence at the time the amendment was passed might be reviewed on application of the unions concerned with a view to the fixing of a forty-hour week. The Factories Amendment Act, 1936, required the fixing of a forty-hour week in factories, but made provision for the Arbitration Court to grant exemptions on application, but the exemption provision was repealed by the Factories Amendment Act, 1945. The Shops and Offices Amendment Act, 1936, reduced the working-hours in shops from forty-eight to forty-four per week, and a further reduction to forty hours was made by later amendments passed in 1945 and 1946. With one or two exceptions, there was little or no change in the indices between 1938 and 1944, but with the operation of the Factories-Amendment Act, 1945, and the Shops and Offices Amendment Acts of 1945 and 1946, a slight decrease was recorded in 1945, followed by a more substantial one in 1946. The effect of the Shipping and Seamen Amendment Act, 1946, which reduced seamen's hours to forty per week, is apparent in the 1947 figures. Employees in wood and coal yards, motor and horse drivers, and restaurant workers also obtained a forty-hour week in the same year. From the 5th April, 1948, a seven-hour day was, by decision of the Coalmines Council, introduced for all underground workers in coal-mines. By section 6 of the Mining Amendment Act, 1948, this provision was extended as from the 1st January, 1949, to underground workers in other mines.

SUMMARY OF INDEX NUMBERS.—The following table gives a summary for the years 1936–49 of the movements in index numbers covering both wage-rates and hours of labour.

WEEKLY WAGE-RATES, HOURLY WAGE-RATES, AND HOURS OF LABOUR: ALL INDUSTRIAL GROUPS COMBINED Base: 1926–30 (=1000)

Year.Nominal Weekly Wage-rates.Hourly* Wage-rates: Males, Adult.Hours of Labour.
Adults.Juveniles.Males.*Females.
Males.Females.Combined.Males.Females.

* Excluding the agricultural and pastoral group.

19369509619519861078996963962
1937103610151033112412481154890898
1938108110551079116412891212888896
1939110011031100119113201235888896
1940113011371132121713721275888896
1941117011741171124314291326888896
1942122212341224130214681381888896
1943126112921265135515041414888896
1944127412971277137915041429888896
1945138114591397165316931536885894
1946143415331446181918241586877870
1947148916141503194919661659867867
1948158817641607210821711752866867
1949167819061702225823381858864867

STATISTICS OF 1945 CENSUS.—The following tables are a continuation of the 1945 census results to which reference has been made on page 41, but it has been deemed appropriate to show data for hours of work and travelling-time in their present context.

Hours of Work.—A questionnaire on the number of hours worked (including overtime) per week appeared on a census schedule, for the first time in New Zealand, at the census of 1945. The demand for increased production and the shortage of labour due to war conditions were no doubt responsible for the very long hours worked by a large number of people. Of those recording their hours of work, 18 per cent. of males and 5 per cent. of females worked sixty hours or more per week. The following is a summary giving the hours worked by all people actively engaged in industry.

Hours Worked.Males.Females.Total.

*Includes ex-servicemen who had not then returned to work.

Nil (unemployed)*5,8231,0906,913
20–241,6012,3253,926
25–291,7264,5426,268
30–343,1634,9068,069
35–3912,51618,72931,245
40–44206,71782,616289,333
45–4955,47816,21171,689
50–5428,3894,86033,249
55–598,1151,5419,656
60–6423,0203,03626,056
65–693,8674324,299
70–7416,0671,69617,763
75–793,2892793,568
80–8414,2671,26015,527
85–8972380803
90 and over6,7287647,492
Not applicable40,5874,05444,641
Not specified40,26914,61854,887
    Totals472,345163,039635,384

In addition to the above, a number of people, classified with the non-working population, indicated that they were engaged on part-time work—i.e., loss than twenty hours per week. A brief summary of such cases is now given:—

Hours Worked.Males.Females.Total
1–43170101
5–9135212347
10–14189417606
15–19164435599
      Totals5191,1341,653

Travelling-time.—The following table is of interest in that it affords for the first time some indication of the usual time occupied in travelling from home to place of employment (one way only). The daily aggregate (i.e., double the times quoted therein, to allow for return to place or residence) is considerable and reflects the growth of urbanization in New Zealand.

Travelling-time (Minutes).1945 Census.
Males.Females.Total.
Nil149,71738,583188,300
1–5 inclusive36,88113,25750,138
6–10 inclusive47,57421,01368,587
11–15 inclusive49,30422,23471,538
16–20 inclusive37,78617,92355,709
21–25 inclusive11,9466,02217,968
26–30 inclusive46,28818,04064,328
81–35 inclusive6,9172,8729,789
36–40 inclusive7,8523,07410,926
41–45 inclusive12,9914,87517,866
46–50 inclusive2,9971,0334,030
51–55 inclusive723273996
56–60 inclusive10,1002,76012,860
61–65 inclusive476106582
66–70 inclusive609186795
71–75 inclusive1,0883231,411
76–80 inclusive467140607
81–85 inclusive642791
86–90 inclusive1,3592571,016
91–95 inclusive33942
96 and over77696872
Not applicable5,8231,0906,913
Not specified40,5748,84649,420
  Totals, actively engaged472,345163,039635,384
  Totals, not actively engaged310,257657,913968,170
  Grand totals782,602820,9521,603,551

Chapter 39. SECTION 39—LABOUR LAWS AND ALLIED LEGISLATION

39 A—HISTORICAL INTRODUCTION

HISTORICAL INTRODUCTION.—In 1858 the New Zealand Parliament enacted that the laws of England as existing on 14th January, 1840, should, as far as applicable, be deemed to apply in New Zealand also. But in what was an essentially agricultural and pioneer country, conditions demanding labour legislation were not present, so that there was but little early progress in labour legislation. Initially, labour administration was interpreted in the light of English statutes, but such interpretations were largely ineffective, owing to the vast difference between English and New Zealand conditions.

One industry, however, was as important to New Zealand as to the British Isles—the shipping industry. In 1854 Britain passed a consolidating Merchant Shipping Act, which contained numerous safety clauses and included a series of regulations aimed at the well-being of the crew, such as a wage-paying node and provisions as to seamen's accommodation, diet, and medical comfort. In 1858 the New Zealand Parliament extended these regulations of the working-conditions of seamen to all British ships under the jurisdiction of New Zealand. A series of Merchant Shipping Acts Adoption Acts was passed in 1869, 1873, and 1874, taking over certain provisions of the British Merchant Shipping Acts of 1862, 1872, and 1873, while other Acts followed in 1877, 1885, and 1890.

Apart from the regulation of working-conditions on board ship, early New Zealand social legislation concerned itself mainly with such general social problems as the care of orphans and the encouragement of thrift by means of suitable institutions. The Master and Apprentices Act of 1865 and the apprentice protection sections of the Offences against the Person Act of 1867 regulated the apprenticeship of young persons to farmers and tradesmen, stipulating that they were to be provided with food, clothing, bedding, and a moral education. These provisions were apparently intended to safeguard the training and interests of destitute children. In 1856 a law was passed to facilitate the formation of friendly societies in New Zealand, and the establishment of savings-banks was to be stimulated by an Act of 1858. The Act providing for the establishment of the Post Office Savings-bank was passed seven years later. A Distress and Replevin Act (1868) regulated the conditions under which goods and chattels might be seized as a distress for arrears of rent.

Trade-unions legislation commenced with the Trade-unions Act passed in 1878, affording unions protection from prosecution for conspiracy by reason merely that their purposes were in restraint of trade. The Inspection of Machinery Act, 1882, provided for the inspection of machinery in factories, &c., and required that persons in charge of boilers be properly qualified. An Employers' Liability Act was passed in 1882, legislating in the matter of industrial accidents with the object of mitigating the consequences to the worker without recourse to expensive litigation at common law.

Legislation specifically governing the conditions of employment of women and girls—particularly in respect of hours of labour—was introduced in 1873, there being several amendments to the Act in later years, while the legislation was amended and consolidated in 1881. Regulation of the hours of labour of children was also provided for. With the existence of slump conditions in the “eighties” allegations of “sweating” arose; and, since such complaints became increasingly numerous, a Commission was set up in 1889 to inquire into this evil. The Commission found that the Employment of Females Act was ineffective owing to the lack of the necessary powers of enforcement. The Commission declared that actual “sweating” conditions were not present, though a minority report differed from this view but pointed out that with increasing industrialization such conditions would rapidly become prevalent if no attempt were made to check them. The Commission made recommendations for future labour legislation, and, as the result of its findings, the Factories Act of 1891 was passed.

Depression, discontent, and a growing labour force—despite depression, the number of hands employed in factories increased by approximately 16½ per cent. between 1885 and 1890—formed an economic background favourable to social legislation. Meanwhile the maritime strike of 1890, which caused even further distress throughout the country, proved to the trade-unions that they were not sufficiently strong to obtain their demands by direct action, and diverted their activities to the political field. The strike also aroused public opinion to the necessity for preventing such industrial strife. Political opportunity was still further opened by Sir George Grey, who in 1889 obtained Parliamentary approval for the abolition of the last remnant of plural voting at the elections to the House of Representatives. The extension of the franchise to women followed four years later.

In January, 1891, a Liberal Government came into power under the leadership of Ballance, with Reeves (Labour) and Seddon (Public Works) in the portfolios directly concerned with labour matters. The economic and political background demanded social change, and the change came to such a degree that New Zealand—still in the pioneer stage of economic development—acquired world fame as the land of advanced social legislation. The labour code enacted in the “nineties” was not so much socialistic as a correction of the more manifest injustices of an individualist system. There was not so much State control as an improved framework within which laissez faire could operate. This policy was most clearly seen in the realms of housing and farming, in which the Government aimed at making it easier for the worker to build or to settle on land, by the provision of finance through the State Advances Department (established in 1894). The Family Homes Protection Act, 1895, provided protection for homes from the legal processes resulting from bankruptcy proceedings, &c. The only encroachment on laissez faire principles was the fostering of co-operation on public works from 1891 onwards.

Working-conditions were improved by legislative regulation in four types of industry (factory work, shipping, shops and offices, and coal-mining), wages being also safeguarded though not directly increased.

The great achievement of this administration, however, was the evolution of machinery—the Conciliation Councils, the Arbitration Court, and the Labour Department—which not only administered the labour code efficiently, but could also modify it rapidly to suit the changing economic background. This dynamic machinery was far more effective than the all too soon antiquated improvements by the more normal procedure of static legislative enactment. An adjustable labour code was of special advantage to a primary-produce exporting country which is, of all countries, most open to the fluctuations of economic progress, and it is another example of the British empiricism that delights in suiting action to the conditions of the moment.

This code, and the resulting constant political intervention in labour conditions, profoundly modified labour organization. Since resort to judicial rather than to militant action became the accepted means of settling industrial disputes, much of the bitterness usually associated with the struggle for improved wages and working-conditions was lost. Moreover, the close association with the Courts led to the growth of a strong political bias in the aims of unionism. This was but natural, for, since the legislative code ensured to the workers many benefits for which they would otherwise have had to fight keenly, it was felt that the further amelioration of living-conditions would best be attained by legislation rather than by direct action.

Subsequent progress has been determined largely by this code, although the swing visible in the development of English labour legislation from Salisbury's Factory Acts to Lloyd George's pension schemes—from concrete intervention in working-conditions to attempts at ensuring a more equitable distribution of the national income—is also evident in New Zealand. For example, the rate of age-benefit (formerly old-age pension) has been increased considerably—from £18 per annum (1898) to £45 10s. (1925), to £52 (July, 1936), to £58 10s. (December, 1936), to £78 (April, 1939), and, by increases at intervals during the war and post-war years', to its present (March, 1951) figure of £149 10s. Again, although interrupted to some extent during the war years by the needs of a war economy, much progress has been achieved in connection with the Government's housing scheme (commenced in March, 1937) of erecting homes of a good standard, which are let to tenants at a reasonable rental (see pp. 445–448).

Prior to the passing of the Social Security Act, 1938 (sec Suction 26), the initial pre-eminence of New Zealand in respect of social legislation generally had been largely lost. Hitherto the only governmental provision towards sickness insurance was the National Provident Fund established in 1911. This scheme is a voluntary one, State aid being in the direction of administration, together with a subsidy. The Social Security Act is much wider in scope than similar legislation in most other countries; but it is worthy of note that compulsory health insurance, operative in New Zealand only from 1st April, 1939, was in operation for many years in several other countries—e.g., Germany (1883), Great Britain (1911).

National provision for the relief of unemployment did not become law in this country until 1930, whereas in Great Britain legislation dealing with this subject has been in force since 1911. The earliest legislative action specifically focused on unemployment-insurance matters was taken, as far as can be ascertained, in Denmark, in the year 1907. Other countries in which the years of initiation of unemployment-insurance were antecedent to that of New Zealand were: Austria, 1920; Queensland (Australia), 1922; Italy, 1923; and Germany, 1924.

A Workers' Compensation Amendment Act was passed in October, 1936, liberalizing the scale of payments in respect of accidents. The Social Security Act has rectified the pre-existing deficiencies in New Zealand legislation in regard to medical benefits and unemployment, as compared with the position in other countries.

Up to 1936 progress in other spheres was limited to technical improvements on the original Ballance-Seddon code, except perhaps in the case of the fluctuating fortunes of the Arbitration Court. During the twenty-six years of prosperity from 1895 to 1921 (there was but a slight setback in 1909–10) the scope of the Court's awards was gradually expanded, the most important step being the power conferred in 1898 of prescribing minimum rates of wages. Whereas the Court was originally more concerned with conditions of work, and not at first with wages, there has been a gradual transformation, till in recent years the attention of the Court has been mainly focused on the wages question. As the Court is progressive, or at least not static, its influence expanded at the cost of stationary measures, such as Factories Acts, which, in practice, became a dead-letter as affecting workers under the jurisdiction of the Court. During the depressed years following 1921 wages were reduced, to the dissatisfaction of the workers, yet not fast enough for employers, so that the value of the Court was increasingly questioned till a National Industrial Conference was summoned in 1928 to discuss, inter alia, compulsory arbitration. In the boom years between 1927 and 1930 no action was taken; but in 1932, under stress of depressed conditions, amendments were made to the Act which in effect abolished the system of compulsory arbitration. The Industrial Conciliation and Arbitration Amendment Act, 1936, restored the full powers of the Court.

Though no great inroads have been made on the wages system, there has been definite governmental and legislative encouragement of co-operation. In 1891 much public-works construction, such as road and railway formation, was first organized on this principle. The plant, explosives, &c., were supplied to the men by the State at cost price or on low hire terms. A modified form of the system then adopted is still followed, and its scope was increased in 1936. Similarly, the Companies Empowering Act of 1924, the provisions of which were embodied in the Companies Act, 1933, attempted to encourage the principle of profit-sharing among workers. Any company registered under the Companies Act is empowered to issue to its employees labour shares, which are not transferable, have no nominal value, and do not form part of the ordinary capital of the company. Except as otherwise provided, these shares entitle the holders to the same privileges as the ordinary shareholders. In the event of an employee leaving his employment or dying, the shares must be surrendered in cash or in capital shares to him or to his heirs. Another Act in the early “twenties” aimed at fostering co-operation among farmers, but it became, in practice, a dead-letter.

There was in the original labour code a definite policy of ensuring greater opportunities for the masses by financing farming and house-building projects, through the State Advances Department. This provision of easy credit to put workers on the land was the rural aspect of the labour code, for, apart from some provision for the inspection of housing, there were no other measures designed for the agricultural labourer. Even the Arbitration Court in 1908, 1919, and 1925 refused to make any award covering permanent farm labour. Full provision for the application of standard rates of wages, &c., to farm workers was made in 1936 (see Agricultural Workers Act, post). The policy of social lending survived the years of prosperity, and was employed to cope with part of the rehabilitation necessitated by the war of 1914–18; but the policy was reversed a little later, and the Rural Advances Act of 1926 was a definite attempt to put State Advances loans on a more economic basis, eliminating much of the social background. This tendency was completed by the creation of the Mortgage Corporation in 1935, which definitely marked the subordination of social to economic ends. The agricultural bias and the workers' loans of up to 95 per cent. of their security were both eliminated, in theory at least. At the same time loans for housing were reintroduced for Maoris late in 1935, and further activity in this sphere was foreshadowed by the Housing Survey Act of 1935. The Government was also empowered to lend to farmers, through the Lands Department, by the Dairy Industry (Emergency Powers) Act of the same year.

The State Advances Corporation Act, 1936, marked a definite reversal of the previous Government's policy in regard to State Advances loans. The Mortgage Corporation was abolished, its powers having been taken over by the State Advances Corporation (see Section 25D), while the general purpose of the 1936 Act was definitely in the direction of a liberalization of the lending policy of the State.

During the depression period there was a cessation of the move towards better working-conditions; and, on the grounds of economic circumstances and the danger of inconveniencing still further already bankrupt employers, the various inspection duties that usually preserve the labour code were curtailed. The rates of pensions and of public servants' salaries and wages were reduced, while award rates of wages were also compulsorily reduced. At the same time heavy unemployment liabilities were undertaken and immigration control was made more rigid. Steps were also taken to reduce farmers' mortgage liabilities and to maintain farmers on their land.

In no case do the provisions laid down by any particular labour law cancel the worker's rights at common law; but since, naturally enough, better conditions are laid down by statute than the worker is entitled to at common law, it is unusual to find in these days litigation under the common law affecting master and servant. It sometimes happens, however, notably in workers' compensation cases, that appeal is made at common law instead of under the Act, there being no statutory limits to the damages which may be obtained at common law. Since, with the exception of such of the labour statutes as are of general application, no labour legislation exists as yet affecting certain classes or workers—e.g., domestic servants—their relations with their employers are still governed mainly by the common law affecting master and servant.

New Zealand has been relatively backward in protection for permanent farm labour, for while seasonal labour is in general covered—awards existing both for shearers, musterers, and shed hands and for threshing-mill workers—the Arbitration Court has made no awards in respect of permanent farm hands. In general, conditions of work on farms were not covered by any specific legislation—except as regards inspection of housing-accommodation—until, in 1936, the Agricultural Workers Act (described in some detail later) was passed, containing definite provision as to wages of dairy-farm workers (extended later to cover other classes of farm workers) and better provision for the housing of agricultural workers generally. Similar legislation has existed in many of the older countries for years past. Further improvement in the position of agricultural workers was made by the Share-milking Agreements Act, 1937, which defined, inter alia, minimum percentages of the milking returns to be received by share-milkers.

The general trend of labour legislation since 1936 has been conditioned by three major influences. The first of these was primarily economic in origin, legislation being necessary to cope with continuing and derived problems associated with the economic depression and subsequent recovery. The second, with its origin in the international political developments culminating in war during 1939, was responsible for a considerable volume of wartime and post-war legislation. The third element was of a more general nature, being the direct motivating force behind some major items of legislation and often indirectly influencing the content of other Acts and amendments passed during the various sessions. Briefly, it can be described as full acceptance of the principle that society, through its representative institutions, should take active steps towards the improvement of the working, living, and social circumstances of its individual members. The appropriate action in many instances has required legislative sanction to provide for either direct control or regulation by the Government.

As a point of possible interest, although not of particular relevance to labour legislation, it is possible to discern two other main lines of approach to law-making. One of these is due to the increasing participation by New Zealand in international affairs consequent on its enhanced national status and acceptance of responsibility in the wider issues of the present era. The other is domestic; it is concerned with the welfare and social development generally of both the rapidly growing Maori population and the inhabitants of New Zealand's island and trust territories.

The economic depression and subsequent recovery was substantially the background for the major labour measures listed below commencing from the 1936 session. In addition, extensive amendments to pre-existing labour laws were made by the Government towards the formulation of a more liberal code of social legislation. Provisions novel to New Zealand were also made with the same object in view—e.g., the Agricultural Workers Act, and the provision for the declaration of a basic wage contained in the 1936 amendment to the Industrial Conciliation and Arbitration Act. A list of Acts dealing directly with labour questions follows:—

  • Employment Promotion Act, 1936.

  • Industrial Conciliation and Arbitration Amendment Acts, 1936, 1937, and 1939.

  • Factories Amendment Act, 1936.

  • Shops and Offices Amendment Act, 1936.

  • Agricultural Workers Act, 1936.

  • Coal-mines Amendment Acts, 1936 and 1937.

  • Workers' Compensation Amendment Act, 1936.

  • Mining Amendment Act, 1937.

  • Share-milking Agreements Act, 1937.

  • Wages Protection and Contractors' Liens Act, 1939.

In addition to the Acts mentioned above, provisions in several other Acts dealt with matters which can properly be regarded as corning within the subject-matter of this section. The following Acts, or provisions in Acts, may be referred to in this connection:—

  • Certain provisions in the Finance Act, 1936, dealing with restoration of wages and salaries.

  • Distress and Replevin Amendment Act, 1936.

  • Fair Rents Act, 1936.

  • Family Allowances Amendment Act, 1936.

  • Pensions Amendment Acts, 1936 and 1937.

  • Prevention of Profiteering Act, 1936.

  • Mortgagors and Lessees Rehabilitation Act, 1936.

  • State Advances Corporation Act, 1936.

  • Iron and Steel Industry Act, 1937.

  • Petroleum Act, 1937.

As previously mentioned, the war period was productive of much legislative activity of relevance to labour conditions. In some instances the object was essentially precautionary, while in others it was designed to cope with situations as these emerged or developed. Principal measures with some application to industrial conditions were as follows:—

  • Industrial Conciliation and Arbitration Amendment Act, 1939.

  • Emergency Regulations Act, 1939, and later amendments.

  • War Pensions Extension Act, 1940.

  • War Pensions and Allowances (Mercantile Marine) Act, 1940.

  • Various provisions of the Finance (Nos. 2, 3, and 4) Acts, 1940.

  • Rehabilitation Act, 1941, and 1944 amendment.

  • War Damage Act, 1941, and 1942 amendment.

  • Servicemen's Settlement and Land Sales Act, 1943.

  • War Pensions Act, 1943 (consolidation and amendment).

More comprehensive legislation directly governing wartime labour activities was contained in the series of emergency regulations and amendments issued during 1939–45, including orders made under the authority of the latter. For further reference to the scope of the regulations listed below the reader should consult pages 625–629 of the 1946 Year-Book, wherein the subject-matter is presented in greater detail. A summary of the relevant regulations and orders is now given:—

  • Labour Legislation Emergency Regulations 1940 (superseding regulations of a similar nature in 1939).

    Various Labour Legislation Suspension Orders 1940.

    Shop Labour Legislation Suspension and Modification Order 1941.

    Factory Industries Labour Legislation Suspension Order 1941.

    Holidays Labour Legislation Modification Order 1941.

    Overtime and Holidays Labour Legislation Suspension Order 1941.

    Agricultural Workers Labour Legislation Modification Order 1941.

  • Industrial Man-power Regulations 1942 (consolidating and re-enacting those provisions of the National Service Emergency Regulations 1940 and their subsequent amendments which related to the question of national service outside the Armed Forces).

    The Industrial Man-power Regulations 1942 were subsequently revoked and reissued as the Industrial Man-power Regulations 1944.

  • Waterfront Control Commission Emergency Regulations 1940.

  • Rates of Wages Emergency Regulations 1940 and amendments.

  • Economic Stabilization Emergency Regulations 1942 and amendments. These were issued as a reprint in 1944.

  • Occupational Re-establishment Emergency Regulations 1940, superseding 1939 regulations of similar title.

  • Industrial Rest Period Emergency Regulations 1943, the provisions of which were replaced by permanent legislation in the Annual Holidays Act, 1944.

The principal features of the war-inspired legislation quoted above are now briefly discussed. An essential over-all measure, the Labour Legislation Emergency Regulations 1940 gave the Minister of Labour power to modify or suspend, by order published in the Gazette, the provisions of any Act, or of any award or industrial agreement under the Industrial Conciliation and Arbitration Act, or of any voluntary agreement, in so far as they related to conditions of employment. The object of these regulations, intended to be temporary in nature, was to overcome the effects of the shortage of skilled workers in certain industries which were essential to the efficient prosecution of New Zealand's war effort. Provision was therefore made by these regulations and the various orders issued under their authority for the working of shifts, extending the number of hours that could be worked in any one week, and relaxing apprenticeship conditions, while in certain trades the basic-wage provision was modified to enable women workers over twenty-one years of age without previous experience to be employed.

The National Service Emergency Regulations 1940, which with amendments were reprinted in 1944, empowered the Minister of Industrial Man-power to declare any industry to be an essential industry. Special provisions applied with respect to employment in essential undertakings—for example, a person could not, in general, leave his employment or be dismissed or be permitted to give his services in any other undertaking without seven days' notice on either side and the permission of the District Man-power Officer first being obtained. Every employee in an essential industry was entitled to a minimum weekly payment equivalent to his ordinary weekly wage, subject to certain maxima specified by regulations. Other provisions detailed offences under these regulations, protected employees called up for military service from dismissal, and prevented employment of deserters from the Armed Forces or military defaulters, &c.

In addition to controlling those avenues in which industrial effort was expended, and its corollary entailing the direction of man-power, a third general feature was supervision over the field of transportation. The Waterfront Control Commission Emergency Regulations 1940 provided for a Waterfront Control Commission with very extensive powers, including the employment of labour, the prescription of terms and conditions of such employment, and rates of remuneration.

It was early realized that the effects of wartime shortages of supplies and of manpower would have repercussions on prices and wage-rates. In an endeavour to minimize such movements and preserve a reasonable degree of stability in both these sectors of the economy, regulations were issued in 1939 and 1940 dealing with the control of prices and regulation of wage-rates respectively. Further information on price control is given in Section 37 of this issue. The Rates of Wages Emergency Regulations 1940 provided that the Arbitration Court from time to time, on the application of any industrial union or association of workers, might amend by general order the provisions of all awards and industrial agreements in force in so far as they determined rates of remuneration.

These regulations were superseded by the Economic Stabilization Emergency Regulations 1942, providing for the stabilization of all rates of wages and remuneration at the leveis ruling on the 15th November, 1942. A special wartime price index was provided for the purpose of recording, as from the 15th December, 1942, any increase or reduction in the prices of such commodities and services (including rents) as the Minister of Industries and Commerce might direct. In the event of any movement, amounting to 2½ per cent. initially and 5 per cent. in subsequent variations, in the general level of prices included in the wartime price index, the Court of Arbitration was enjoined to issue a general order adjusting rates of remuneration similarly by an amount equivalent to the variation disclosed by the index. Apart from the adjustment of strictly defined anomalies, these regulations limited the powers of the Court in dealing with wages to the issue of general orders as outlined above. The February, 1945, amendment gave the Court power to amend existing awards and agreements so, as to adjust disparities in wage levels. Power was also given to issue pronouncements specifying the standard wages for skilled, semi-skilled, and unskilled workers for the purposes of the regulations.

In June, 1945, a further amendment to the regulations was issued, and in making any general order regarding wages the Court was required to take into account—

  1. The economic and financial conditions affecting trade and industry in New Zealand.

  2. Any rise or fall in the cost of living as indicated by the wartime price index since the 15th December, 1942.

  3. Any increase or reduction in rates of remuneration since the 15th December, 1912.

  4. Any ether consideration that the Court deemed relevant.

Wartime legislation covering the above points was in part placed on a permanent-basis by virtue of the passing of the Economic Stabilization Act, 1948. This Act revoked Parts II and V of the Economic Stabilization Emergency Regulations 1942 while other specified emergency regulations were continued in force as stabilization regulations as if they had been made under the authority of the 1948 Act. Provision was made for the establishment of an Economic Stabilization Commission with the principal function of making recommendations to the Minister of Industries and Commerce, after inquiry and investigation, in relation to the economic stabilization of New Zealand and the functions of the Minister under this Act. Besides general administration, these latter functions cover in particular the stabilization, control, and adjustment of prices of goods and services, rents, other costs, and rates of wages, salaries, and other incomes.

The Economic Stabilization Emergency Regulations 1942 were amended in several important respects in February, 1949. This amendment revoked the Rates of Wages Emergency Regulations 1940 and subsequent amendments, and also amended the principal regulations chiefly in the following ways. In making pronouncements specifying standard rates of wages for skilled, semi-skilled, and unskilled workers, or in making general orders, the Court of Arbitration was required to take into account—

  1. The general purpose of these regulations.

  2. Any rise or fall in retail prices as indicated by any index published by the Government Statistician.

  3. The economic conditions affecting finance, trade, and industry in New Zealand.

  4. Relative movements in the incomes of different sections of the community.

  5. All other considerations that the Court deemed relevant.

Provision was also made for a general order to be made on any application for a standard-wage pronouncement, and vice versa. In either case no general order could be made to take effect, or any pronouncement be made, less than one year from the date of a previous order becoming effective or of a previous pronouncement having being made. In addition, the Court was empowered to extend the above provisions to apprenticeship orders unless such orders were automatically covered through the amendments made to awards or industrial agreement.

The Economic Stabilization Regulations 1950 revoked and replaced the Economic Stabilization Emergency Regulations, 1942 and amendments. The 1950 regulations abolished the former control of maximum rates of remuneration, and deleted the provision requiring the Court to have regard to the proper relationships between the rates of remuneration of different classes of workers, although this latter may form one of the considerations taken into account by the Court. There is now no automatic application of a general order to rates of remuneration paid in excess of award rates. All provisions relating to standard wage pronouncements in the earlier regulations are omitted, but the Court is empowered to make a general order of its own motion at any time, though it cannot make a general order on application until the previous order has been in force for at least one year. The Court has still however, the inherent power it has always had to make standard wage pronouncements at any time. The earlier provisions as to excluding special classes of workers from general orders, the application of general orders to apprentices, and the filing of industrial agreements after first being approved by the Court, are continued. The Court in making or amending awards and apprenticeship orders is to have regard to the general purpose of the Economic Stabilization Act, 1948, and also when fixing tool, clothing, and vehicle allowances, to have regard to increases and reductions in costs.

The May, 1950, amendment to the Economic Stabilization Regulations provided that the Court of its own motion may make a general order specifying a date of commencement earlier than the date of the order but not before 8th May, 1950. Such an order is to be disregarded in the determination of the time when a general order made on application is to take effect.

Two other classes of legislation due to the impact of war on labour questions may be mentioned briefly. The first covers the reinstatement of employees after military service, the re-establishment in civil life of discharged servicemen, and the reconstitution of wartime industries on a peacetime basis. Legislation concerned with those aspects include the Occupational Re-establishment Emergency Regulations 1940 (now revoked and subject matter covered in the Military Training Act, 1949), and the Rehabilitation Act, 1941, and amendments. Further details are given in Section 45 of this issue.

The second class of legislation dealt with the necessity for definite rest periods for workers, particularly in view of the heavy demands made on a very large section of them by a wartime economy. Early provisions for a minimum rest period were contained in the Industrial Rest Period Emergency Regulations 1943, later replaced by permanent legislation embodied in the Annual Holidays Act, 1944. This Act provides for an annual holiday of two weeks' duration on full pay for all workers, whether permanently or casually employed, who are not otherwise catered for in this respect.

Reference has been made earlier to the fact that much New Zealand social legislation—particularly in recent years—is designed to mitigate the effects of inequalities in the distribution of incomes. Foremost in this category is the Social Security Act, 1938, which at the same time introduced monetary benefits on an increased scale in substitution for pre-existing pensions benefits and extended the specific tax provisions contained in pre-existing unemployment legislation to cover the wider social security benefits. A system of medical, hospital, and other related benefits was also inaugurated. In addition to the supersession of the various classes of pensions by monetary benefits of similar application, new classes of monetary benefits were begun, such as orphans' benefits, sickness benefits, emergency benefits, and the universal superannuation benefit. Further evidence of this trend is shown by a series of regulations extending the scope and character of social security benefits, and by the amending Acts of 1941, 1943, 1945 (which made family benefits universal from 1st April, 1946), 1947, 1949, and 1950 increasing the amount payable for specified benefits. Related legislation includes the Social Security (Reciprocity with Australia) Act, 1948; the War Pensions Act, 1943; War Pensions and Allowances (Mercantile Marine) Act, 1940; Family Benefits (Reciprocity with Great Britain) Act, 1948, and a similar Reciprocity Act with Northern Ireland in the same year.

Several measures dating from 1936 are focussed on the theme of compensation for injury or death. Amendments to the Workers' Compensation Act, 1922, were passed in 1936, 1943, 1945, 1947, 1949, and 1950. The 1943 amendment made it compulsory for an employer to insure against his liability under the Act, while by the 1947 amendment, under section 6, workers' compensation insurance became, with certain exceptions, a monopoly of the branch of the State Fire Insurance Office known as the Accident Insurance Office. Other provisions of the latter amendment relate to accident prevention: occupational training of seriously disabled workers; an increase in the maximum amount of compensation payable in respect of death, incapacity, or permanent physical injury; accidents to the crew of a New Zealand aircraft; accidents to workers travelling to and from work; the provision of artificial limbs; and the conveyance of injured workers. Dependency is also to be determined as at the date of death of the worker. The 1949 amendment increased the maximum amounts payable in respect of death or incapacity. The 1950 amendment restored the right of insurance companies to undertake as from 1st April, 1951, employers' liability insurance which had since the 1st April, 1949, been virtually a monopoly of the State Fire and Accident Insurance Office. It also established the Workers' Compensation Board with the functions of recommending maximum rates of premiums and rates of commission for insurance agents, administering the Workers' Compensation Account also set up by the amending Act, &c. The maximum amount of weekly payments of compensation was also increased. The Law Reform Act, 1936, and the Statutes Amendment Act, 1937, also included clauses relating to the Deaths by Accidents Compensation Act. Allied to this subject is the Contributory Negligence Act, 1947, which provides for the apportionment of damages where the person suffering damage has himself been guilty of contributory negligence.

A desire to improve still further working-conditions is evident in the Coal-mines Amendment Acts of 1936, 1937, 1941, 1947, and 1949, the Mining Amendment Acts of 1937, 1941, 1947, and 1948, and the Quarries Act, 1944. These contained provisions towards the improvement of working-conditions in mines or quarries. Somewhat similar provisions, for example, regarding hours of labour are to be found in the Factories Act, 1946 (a consolidation measure), the Shops and Offices Amendment Acts of 1936, 1945, and 1946, and the Shipping and Seamen Amendment Acts, 1946 and 1948.

Further instances of the broader social emphasis in labour legislation occur in the Legal Aid Act, 1939; the Wages Protection and Contractors' Liens Act, 1939; the Distress and Replevin Amendment Act, 1950, the Employment Act, 1945, with its object of promoting and maintaining full employment at all times; the Minimum Wage Act, 1945, providing for a minimum wage for all adult workers; and the Industrial Relations Act 1949, which authorized the appointment of the Industrial Advisory Council with functions of making recommendations for improving industrial relations and welfare, in particular on such schemes as incentive payments, profit sharing, safety and health of workers, provision of amenities, and the establishment of works committees and other employer-worker organizations. More extensive coverage of legislation concerned with safety provisions was accomplished with the passing of the Municipal Corporations Amendment Act, 1938, the Bush Workers Act, 1945, and the Scaffolding and Excavation Amendment Act, 1948, while the Dairy Industry Amendment Act, 1938, and the Meat Act, 1939, contain clauses dealing with inspection requirements, in their appropriate spheres. The Boilers, Lifts, and Cranes Act, 1950, and the Machinery Act, 1950, which together replaced the Inspection of Machinery Act, 1928, are also relevant in this connection. The Radioactive Substances Act, 1949, likewise contains sections designed to promote safety in the appropriate sphere of operations.

Acts covering the working-conditions and rates of remuneration for State employees during the period 1936–50 are the Government Railways Amendment Acts, 1936 and 1944, Post and Telegraph Amendment Act, 1944, and the Government Service Tribunal Act, 1948.

Other items of legislation concerned with labour-force activities generally are now briefly mentioned. The Industrial Conciliation and Arbitration Amendment Act, 1943, authorized recovery of money due under an award, while the 1947 amendment provides for the appointment of Deputy Judges of the Court of Arbitration and also for the taking of a secret ballot by every industrial union of workers or of employers on questions relating to strikes and lockouts. The Statutes Amendment Act, 1948, also included clauses relating to wages recovery under an award, and for retrospective payments. Amendments were made in 1947 and 1948 to both the Strike and Lockout Emergency Regulations 1939 and to the Waterfront Industry Emergency Regulations 1946. A consolidating and amending measure relating to apprenticeship was passed in 1948, being the Apprentices Act of that year. The entire body of fair-rents legislation commencing with the 1936 Act was revoked by the passing of the Tenancy Act, 1948, the latter being amended in 1950. Finally amendments were made in 1948 to both the Fisheries Act, 1908, and the Shipping and Seamen Act, 1908.

The Waterfront Royal Commission Act, 1950, makes special provision as to the Royal Commission appointed on the 21st September, 1950, to inquire into and report upon the waterfront industry in New Zealand.

39 B—WORKING-CONDITIONS

GENERAL.—Working-conditions of women and girls in factories were the subject of legislation as early as 1873; but the first legislation of this nature applying to all factory workers was the Inspection of Machinery Act of 1874, which provided for the inspection of machinery in factories, &c., and required that persons in charge of boilers should be properly qualified; while three years later an ineffective Factory Act was passed. But it was the Ballance and Seddon Governments which really initiated legislation in this sphere with five main Acts that have served as a basis for all subsequent legislation on this subject and determined the lines along which progress was to be made—the Factories Act, 1891, the Coal-mines Act, 1891, the Shops and Shop-assistants Act, 1892, the Shipping and Seamen Act, 1894, and the Industrial Conciliation and Arbitration Act, 1894. The Agricultural Workers Act, 1936, represents a definite extension of the scope of this legislation.

A considerable proportion of the persons comprising the labour force of New Zealand have their working-conditions determined either directly or indirectly by virtue of the provisions of the six Acts quoted above Legislative authority covering the working-conditions of substantially the greater portion of the remaining participants in the labour force is contained in the following:—

  • Public Service Act, 1912, and the Government Service Tribunal Act, 1948.

  • Government Railways Act, 1926, and the Government Railways Amendment Acts, 1936 and 1944, consolidated in the 1949 Act.

  • Post and Telegraph Act, 1928, and Post and Telegraph Amendment Act, 1944.

  • Police Force Act, 1947.

  • Education Act, 1914.

  • Hospitals Act, 1926, and the Hospital Employment Regulations 1948.

  • Public Works Workers' Agreement, 1936, and since 1949, the Government Service Tribunal Act, 1948.

  • Waterfront Industry Emergency Regulations 1946 and amendments (reprinted 1950).

It will not be out of place here to mention that working-conditions were subject to considerable modification during the war period by the operation of various emergency regulations. The principal regulations involved were the Labour Legislation Emergency Regulations 1940 and its amendments; the Industrial Man-power Regulations 1944; the Waterfront Control Emergency Regulations 1940, replaced by the Waterfront Industry Emergency Regulations 1946; and the Rates of Wages Emergency Regulations 1940, the latter largely superseded by the Economic Stabilization Emergency Regulations 1942 and amendments. Of these, the Industrial Man-power Regulations 1944 were revoked in 1946 and the Rates of Wages Emergency Regulations 1940 in 1949, while most of the various suspension or modification orders issued tinder the authority of the Labour Legislation Emergency Regulations 1940 have also been revoked. The emergency wages and stabilization regulations were given permanent legislative effect by the Economic Stabilization Act, 1948.

It is proposed in the following pages to survey in broad perspective the working-conditions laid down by legislation for the components of the labour force. In so doing it is considered that the best approach is to deal with the major specific Acts concerned.

ANNUAL HOLIDAYS ACT AND ANZAC DAY ACT.—In addition to the specific measures mentioned earlier relating to working-conditions, an Act of general application, except in cases where more favourable conditions already existed in awards, &c., was passed during the war entitled the Annual Holidays Act, 1944, and subsequently amended in 1945 and 1950. This Act provides for an annual holiday of two weeks' duration on full pay for all workers, whether permanently or casually employed, who are not otherwise provided for in this respect. If a holiday benefit to which a worker is entitled under any other provision is not less favourable than that provided for by the Act, such benefit is not affected, but if the benefit is less favourable the worker is entitled to the holiday provided for by the Act.

The holiday is to be given within six months after it becomes due, but if the employment is terminated before it has been taken, the employer is required to pay the amount of holiday pay due. If any special holiday for which the worker is entitled to payment under any Act, award, or agreement, or under his contract of service, occurs during the period of the annual holiday, the length of the annual holiday is increased by one day in respect thereof. An amendment parsed in 1945 provided that not less than seven days' notice must be given by the employer of the day on which the annual holiday is to commence, unless an agreement has been made to the contrary.

Where a worker has been employed for less than one year, on termination of employment he is entitled to payment equal to one twenty-fifth of his ordinary pay for the period of employment. The 1950 amendment abolished the former provisions relating to holiday cards and stamps.

An employer is required to keep a record (holiday-book) containing particulars of employment, annual holidays, and amounts paid in respect of each worker in his employment.

The Anzac Day Act, 1949, provides that the 25th day of April in each year shall be known as Anzac Day, and shall be observed throughout New Zealand in all respects as if Anzac Day were a Sunday. The Act prohibits the transfer of a holiday, observance of certain hours of labour, or payment at certain rates of wages on Anzac Day to any other day instead of Anzac Day, although an employer may grant a holiday on any other day instead of Anzac Day where the worker is required to work on Anzac Day at ordinary rates of wages.

FACTORIES ACT.—A brief summary of the earlier factory legislation of New Zealand may be found on page 825 of the 1940 issue of the Year-Book. It covers the Factories Acts of 1891, 1908, and 1921–22, with their amendments. The last-mentioned enactment and subsequent amendments to it was, however, recently consolidated by the passing of the Factories Act, 1946. In the ensuing paragraphs, various phases of factory legislation as the law now stands, have been selected for individual exposition.

Prior to 1936 the term “factory” had included all establishments where two persons were employed, as well as all places using mechanical power, all bakeries, laundries, gasworks, and several other enumerated establishments. The 1936 Act extended the term “factory” to all establishments where one person was employed, while the Factories Act, 1946, which consolidated and amended the existing legislation, further extended the term “factory” to include places where milk is pasteurized, abattoirs, and “every building or place in which any noxious handicraft, process, or employment is carried on.” The definition was further enlarged to include “any building, office, or place in which two or more persons are engaged … directly or indirectly, in any handicraft, or in preparing or manufacturing goods for trade or sale.” The 1946 Act also brought Government-owned factories within the scope of the legislation.

Hours of Work and Overtime.—A forty-hour week was prescribed by the 1936 amendment as the legal maximum for an ordinary working-week in place of the pre-existing maximum of forty-eight hours (women and boys, forty-five hours). The number of hours per day was fixed at eight, while work could not be continued for more than four hours and one-quarter (previously five hours) without an intermission of at least three-quarters of an hour. Certain industries which were previously exempt from the forty-eight-hour maximum—meat-freezing works, dairy factories, fellmongery, fish-curing, jam-making, bacon-curing—were also exempt from the operation of these provisions, but the Factories Amendment Act, 1945, extended the principle of the forty-hour week to all factories. These provisions, as amended, were re-enacted in the consolidation measure entitled the Factories Act, 1946.

No boy or girl under sixteen years of age is permitted to work overtime. In the case of all workers over sixteen years of age in laundries, and of women in other factories, not more than three hours' overtime may be worked in one day (excluding time worked before noon on Saturday) and not more than nine hours in any week, nor ninety hours in any year, nor on more than two consecutive days in any week. Thirty hours (above the ninety) may be authorized by an Inspector of Factories, and a further thirty upon the consent of the Minister of Labour. The overtime rate is time and one-half, and the minimum rate, which had been raised to 1s. 6d. per hour by the Factories Amendment Act, 1936, was further increased to 1s. 9d. per hour by the Factories Act, 1946.

There are special provisions in regard to overtime work for certain industries—e.g., laundries, and for fruit-canning factories and jam-making factories for the period between 1st January and 1st April.

Section 16 of the Statutes Amendment Act, 1948, extends the Minister's power to consent to additional voluntary overtime by women in factories or by men and women in laundries up to a maximum of eighty hours in a year.

Holiday Provisions.—The number of paid holidays granted to factory workers was increased from six days to eight days by the 1936 amendment and was extended to cover all workers—not only boys under eighteen and women as previously. For five of these days wages were payable to all persons employed at any time during the preceding fortnight, and for the other days to those employed on any four days of the preceding week. By section 17 of the Statutes Amendment Act, 1938, as amended by section 25 of the Statutes Amendment Act, 1941, payment for each whole holiday mentioned in the Factories Act was made to apply to all persons employed at any time in the fortnight ending on the day of which the holiday occurs. Special provisions have been made requiring extra payment to be made for work done on Sundays or holidays. Generally speaking, treble time is counted for work done on statutory whole holidays (where the worker would be paid ordinary time if not working), double time on Sundays, and time and one-half on half-holidays. In connection with holidays, reference should also be made to the Annual Holidays Act, 1944, the provisions of which are outlined on page 37

There are also special provisions in regard to holiday work for industries such as dairy factories, milk-preserving factories, and newspaper printing or publishing. It should be noted also that the Public Holidays Amendment Act, 1948, gives rules which shall be applicable to the provisions of any Act, award, or industrial agreement when Christmas Day and New Year's Day fall on a Saturday or when an Anniversary Day falls on a Saturday or Sunday. The effect of this amendment is as follows: Where Acts, awards, or industrial agreements provide for the granting of a holiday, or the observance of certain hours of labour, or the payment of certain specified rates of wages on the days specifically mentioned, these provisions will apply on the next succeeding Monday. If, however, provision is made for granting a holiday on a Saturday, such provisions apply without modification.

Section 15 of the Statutes Amendment Act, 1948, repealed the special definition of the terms “holidays” and “Sundays” in their application to morning newspapers and replaces them by new definitions which relate to all newspapers. A “day” for holiday and overtime purposes is defined as from noon on one day to noon on the following day in the case of newspaper offices and works.

Restrictions on Employment.—No boy or girl under fifteen years of age may be employed in any factory, except in a case authorized by an Inspector. Such an authorization may only be given if the boy or girl is over fourteen years of age and is exempted from the general obligation to attend school until the age of fifteen years is reached. No boy or girl under sixteen years of age may be employed in any factory unless a certificate of fitness is issued by an Inspector of Factories, and no such certificate may be granted unless the proposed employer obtains at his own expense a medical certificate of fitness from a Medical Officer of Health or from a registered medical practitioner nominated by a Medical Officer of Health.

Minimum Rates of Pay.—The minimum rate of pay was raised by the Factories Amendment Act, 1936, from 10s. to 15s. per week, rising by half-yearly increments of 4s. per week until the end of the third year, when a minimum of £2 per week operated. The Factories Act, 1946, further increased the minimum to 22s. 6d. per week, with half-yearly increments of not less than 5s. per week until a weekly rate of £2 12s. 6d. is reached. These rates arc, however, subject to the provisions of the Minimum Wage Act, 1945, and its later amendments in respect of workers of twenty-one years of age and over.

Safety, Health, and Welfare.—The 19:56 amendment extended the application of rules for the safety and welfare of factory workers, and further provisions in this connection are contained in the 1946 Act. The safety measures have reference to machinery, dangerous liquids, means of access and safety of places of employment, and means of escape in case of fire, &c. The employer is required to keep a register of all accidents of which he has any knowledge, and first-aid appliances must be provided and maintained. The health and welfare provisions are very extensive and include reference to such matters as air space, cleanliness, ventilation, canteens, the care of employees, amenities and other things to be supplied by the employer to secure employees' health or welfare, and to the making of regulations laying down standards as to what may be regarded as adequate, effective, sufficient, or suitable health and welfare requirements.

Other Provisions.—In addition to repealing previous factory Acts and amendments the Factories Act, 1946, specifically stated that the Act shall bind the Crown. It also includes the normal provisions relating to powers of inspection, registration, maintenance of records and exhibition of notices, requisitions by Inspectors, and the prescription of offences, penalties, and procedure. Finally it provides for awards and industrial agreements to be read subject to the provisions of the Factories Act.

SHOPS AND OFFICES ACT.—As in the case of the Factories Act, important amendments were made to the Shops and Offices Act in 1936, when further advances in keeping with those made in other brandies of industrial legislation were put into operation. These were supplemented by further amendments in 1945 and 1946.

A “shop” in the principal Act (The Shops and Offices Act, 1921–22) is defined to include a hotel, a restaurant, a hairdressing-saloon, and an auction-market, but special provisions relating to hotels and restaurants as well as to chemists, fruiterers, tobacconists, and other particular shops are contained in the principal and amending Acts.

An “office” covers any building in which any person is employed, directly or indirectly to do any clerical work in connection with any mercantile or commercial business carried on by the occupier, but does not include solicitors' offices or mining offices except in respect of minimum-wage-rates provisions.

The definition of the term “shop assistant” was extended by the 1936 amendment to include those employed in the general management or control of a shop, subject to a wage qualification.

Hours of Work and Overtime.—The 1936 amending Act reduced the hours of work from forty-eight to forty-four per week, and a further reduction was made by the Shops and Offices Amendment Act, 1945, which came into operation on 7th December, 1945. The latter amendment provides for a forty-hour week for shop-assistants, but the Court of Arbitration is empowered, on the application of any party (by order in the case of any existing award or in any new award), to extend the hours to forty-four where it is of the opinion that it would be impracticable to carry on efficiently the particular class of business without such extension, but the time worked beyond forty hours is to be paid for at overtime rates—namely, time and a half, with a minimum of 1s. 9d. per hour.

Hours must be worked continuously—i.e., not exceeding eight per day, but up to eleven on one day in the week—except for meal-times and breaks for refreshments. If the meal-time exceeds one hour, the extra time over the hour is to be regarded as time worked. Extension of the weekly hours from forty to forty-four was permitted up to the end of June, 1946, but a forty-hour limit was imposed thereafter if extension by the Court was not authorized by that date. Awards and agreements are required to be read subject to the amending Act but the existing rates of wages were not to be reduced nor the existing working-hours increased.

Limited overtime (to be paid for at time and a half rates) may be worked for stocktaking and on special occasions. A break of not less than one hour for a meal must be allowed after four and one-quarter hours' continuous work, except that an extension to five hours may be made if ton-minutes' rest is allowed at the end of a working-period of three hours.

All assistants employed in hotels and restaurants are brought under special provisions as to hours, overtime, &c. As in the case of shop-assistants, hotel and restaurant employees must be allowed an interval of an hour for a meal after four and one-quarter hours' continuous work. The 1945 amendment did not cover hotel and restaurant workers as far as the reduction in hours was concerned, but they were brought into line by a further amendment passed in 1946. This amendment came into fores on 13th October, 1946, but provision was made for hotel or restaurant workers to be employed up to forty-four hours per week until 30th June, 1947, provided that time and a half rates were paid in respect of the hours exceeding forty. As in the case of shop workers, the Court of Arbitration may, upon application by any party bound or to be bound by any award covering assistants in hotels or restaurants, authorize employment up to forty-four hours per week if it is considered impracticable to carry on efficiently the business of the class of hotels or restaurants specified in the authorization without such extension of hours. Any such extended hours must be paid for at overtime rates. Up to 120 hours per annum additional overtime is permissible under the Act.

The hour of commencing work must not be earlier than 7 a.m., except in certain specified instances—e.g., bakers (4 a.m.), butchers (6 a.m.). Persons engaged in delivering milk may be required to stare work at 3 a.m. or—in accordance with conditions approved by the Minister, but not otherwise—earlier than 3 a.m. The above exceptions do not apply in the case of boys or girls under sixteen years of age. The latest hour to which a male shop-assistant may be employed in any trade is 10.30 p.m., or 11 p.m. on one day in the week in certain instances; while boys under eighteen or females may be employed until 9.30 p.m., but there are exceptions on certain days—e.g., Christmas Eve. The principal Act provided that female assistants and boys under eighteen could be employed in restaurants up to 10.30 p.m., but not after that hour. The 1946 amendment, however provides that where parties to an industrial dispute agree in the matter and incorporate their agreement in an award or industrial agreement, female assistants over the age of twenty-one years may be employed up to 11.30 p.m. In any such case satisfactory provision for conveying such assistants to their homes must be made. There is no limit under the Act to the time at which adult male hotel and restaurant employees may be required to commence or cease work, although the total hours per day and per week are fixed as above.

Offices are required to close at noon on the statutory half-holiday and at five o'clock on every other working-day, certain exceptions—e.g., shipping offices, railway offices, and newspaper offices—being allowed. The list of exemptions from this provision has been substantially reduced by the 1936 Act, banks and insurance offices being important cases previously exempt. In practice, a five-day week is worked in most offices. Limited employment after office-hours is permitted for such purposes as making up balances, &c., payment for overtime at the rate of time and a half and meal-allowance being mandatory in respect of such overtime.

Opening and Closing Hours of Shops.—The closing-hours of shops in any district have for many years been fixed pursuant to the Act by “requisition” of a majority of the shopkeepers, if desired either in the whole of the local district or in any trade in the local district. The hours of closing have been thus determined in very many trades and districts.

In 1920, an amendment to the Act prescribed compulsory closing-hours at 6 p.m. on four days of the week and 9 p.m. on one day in the well-populated areas, except in certain exempted trades, thus incorporating by statute the closing-hours as already determined by “requisition” in many cases. With the passing of the 1945 amendment the Court of Arbitration now has power when making an award in any trade to fix the opening and closing hours of all shops in the particular trade in that locality, and also to provide that such shops shall not be open for business on one working-day in each week or on any award holiday. Before the Court exercises any of these powers, however, it is required to have regard to all relevant considerations. In very many instances these powers have been exorcised and the result of the 1945 amendment has been that the majority of shops are open for five days in the week only.

The occupier of every shop, whether employing assistants or not, is deemed to be an employer within the meaning of the Industrial Conciliation and Arbitration Act, and therefore bound by an award relating to shop-assistants for the purpose of bringing his premises within the closing provisions fixed in an award.

A Magistrate may grant exemption (a) from any opening-hours fixed by the award, (b) from any provision that shops shall close for the whole of one working-day, and (c) from any provision that shops shall be closed on holidays.

Holiday Provisions.—The number of paid holidays provided by the Shops and Offices Act is seven, and employees not otherwise provided for are entitled to the benefits of the Annual Holidays Act, 1944. The provisions of the Public Holidays Amendment Act, 1948, also apply (refer page 738).

In regard to the closing of shops, a weekly half-holiday from noon is compulsory with a few exceptions. The closing-day is fixed in each district by the local authority, except where it is decided by a poll of the electors taken on petition of a certain number. Even in the exempted trades, a half-holiday must be given to each assistant on a day to be fixed by the occupier.

Special provisions operate in respect of holidays for all assistants employed in hotels and restaurants.

Minimum Rates of Pay.—The minimum rates of wages payable to shop-assistants under the Shops and Offices Act are the same as those provided for by the Factories Act (refer p. 739). As in the case of factories, higher rates may be fixed by awards and industrial agreements. The provisions of the Minimum Wage Act, 1945, and its later amendments also apply.

The minimum wage-rates applying to shop-assistants apply also to office-assistants. Prior to the 1936 amendment, office-assistants did not come within the scope of the provision for minimum wages. This particular provision also applies to solicitors' offices and mining offices, which do not come within the definition of the term “office” in respect of other provisions of the Act.

Safety, Health, and Welfare Provisions.—The Act also makes provision for the comfort, health, and safety of assistants—viz., in regard to seating-accommodation, ventilation, heating, sanitation, and hygiene.

Other Provisions.—Each trade in any district may, by a majority vote, obtain an order of the Minister of Labour prohibiting the sale in such district, during the time the shops in such trade are required to be closed, of the goods the sale of which is comprised in such trade. This provision is inserted to meet those cases where there is over-lapping of the trades of various shopkeepers, only some of whom are required to close at a certain hour. The provisions enabling a majority of the shopkeepers in any trade to fix the closing-hours for that trade applies only to those who are principally engaged therein; if the latter are desirous that other shopkeepers carrying on the trade as a minor portion of their business should cease selling the same goods at the closing-hours fixed, they may apply to the Minister for an order prohibiting such sales.

No premium may be received by the occupier of any shop in respect of the employment of any shop-assistant or in respect of the teaching or training of any person in any trade or business carried on in the shop, unless the shop is approved by the Chief Inspector appointed under the Factories Act, 1946, as a school for learners in a trade or business, and the payment is made pursuant to a written agreement that is approved by the Chief Inspector. The Chief Inspector cannot approve of any shop as a school for learners in any trade or business unless he is satisfied that reasonable facilities are provided for learning the trade or business, and he may at any time withdraw his approval if he ceases to be so satisfied. The Chief Inspector must not approve of any agreement under this section unless he is satisfied that the terms of the agreement are reasonable.

Provision is made for the keeping of a time-table of hours of duty of fruiterers' assistants; and, under certain conditions, shops which sell smoking-requisites in addition to carrying on other business may be compelled to close early in the evenings.

There are also the usual provisions governing powers of inspection, requisition, and the prescription of offences and penalties.

Awards and industrial agreements covering shop and office workers are to be read subject to the provisions of the Shops and Offices Act—i.e., the conditions, &c., laid down in such awards and agreements must be at least equal to those prescribed in the Shops and Offices Act.

MINING LEGISLATION.—Since the passing of the original Coal-mines Act of 1886, legislation relating to coal-mines has always been set out separately from that regulating all other mines. The present law relating to mining and quarrying will therefore be found for the most part in the Coal-mines Act, 1925, and subsequent amendments, the Mining Act, 1926, and amendments, and the Quarries Act, 1944. A noteworthy feature of mining Acts is the appointment of Inspectors of Mines with wide powers.

Application of Mining Acts.—A “mine” under the Mining Act means generally any mine other than a coal-mine, while by the Quarries Act, 1944, a quarry is defined as any place in which persons work in excavating any kind of material from the earth. A quarry does not include any place in which mining or searching for coal, gold, scheelite, or petroleum is carried on; any road-cutting or railway-cutting; any tunnel in whoso construction explosives are not used and which is less than 50 ft. long; or any excavation under the Scaffolding and Excavations Act, 1922.

Hours of Work, Overtime, Holidays, and Rates of Pay.—In common with the practice pertaining for many other industrial groups of workers, the current working-conditions for miners and quarry-men generally are determined in the awards made by the Industrial Conciliation and Arbitration Court from time to time, rather than by existing statutory-provisions. In the construction of awards, conditions may be, and probably are, mere favourable than those required by statute, but in no case can the award provisions be less favourable. These comments apply in particular to questions of hours of work, overtime, holidays, and wage-rates for workers in those industries covered by the mining and quarrying Acts. Both principal mining Acts prohibit employment in or about mines on Sundays unless the previous authority of an Inspector of Mines has been obtained. By a decision of the Coal-mines Council, a seven-hour day was introduced for all underground workers in coal-mines as from 5th April, 1948, and this provision was extended to underground workers in other mines by the Mining Amendment Act, 1948, as from 1st January, 1949. This was in lieu of the former eight-hour limit.

Restriction on Employment.—The following legislative restrictions are operative on the employment of women, youths, and boys. No female of any age or any lad under the age of fourteen years may be employed in or about a mine or coal-mine except in a clerical capacity or, by virtue of a 1937 amendment, as nurses or charwomen. A similar restriction is imposed by the Quarries Act, 1944, except that the age-limit for youths is raised to sixteen years. At the present time, also, no male under the age of sixteen years may be employed underground in any coal-mine, or in any alluvial mine, or on or about any dredge; while the minimum age in respect of underground work in a quartz-mine was raised by the 1948 amendment to the Mining Act from eighteen to nineteen years of age. In addition, the employment of youths in specified occupations is prohibited both in coal and other mines, while no youth under twenty-one years is permitted to be in charge of certain types of machinery used in co-mining. No youth may be employed in a mine for more than eight hours per day or forty-eight hours per week except in cases of emergency. As stated earlier the employment, of manual labour on Sundays without the previous consent of an Inspector of Mines is prohibited, while any time so worked must be paid for at higher rates.

Safety, Health, and Welfare Provisions.—In general the provisions of the Coal-mines Act, 1925, resemble those of the Mining Act, 1926, in so far as safety, &c., is concerned although, of course, to combat the special risks of coal-mining additional regulation is necessary. Naturally enough, a very large part of each major mining or quarrying Act deals directly with the subject-matter of this paragraph. The appropriate provisions are now considered under the respective mining acts.

Mining Acts.—The 1926 Act required that a person acting in the capacity of mine manager of any mine where there are more than twelve men employed at any one time above ground, or more than six underground, must hold a certificate granted after examination by a Board of Examiners empowered under the Act to grant such certificates. Provision is made for proper ventilation in mines, the air temperature must not exceed 80° Fahrenheit in any working-place, special care is required to be taken in handling explosives, dangerous places must be properly timbered, and special regulations are made as to hauling-machinery, &c.

All machinery used to supply motive power is subject to the provisions of the Boilers, Lifts, and Cranes Act, 1950, and the Machinery Act, 1950 (which together replaced the Inspection of Machinery Act, 1928), as far as these provisions apply. Sufficient water must be supplied where it is necessary for the laying of dust in a mine. The Mining Amendment Act, 1927, provides, inter alia, that a mine where twenty men or over are employed on one shift must have two outlets.

The Mining Amendment Act, 1941, lays down that every person in charge of electrical apparatus in a mine must be the holder of a mine electrician's certificate. The appointment of an Electrical Inspector of Mines is provided for.

Comprehensive amending regulations pursuant to the Mining Act were issued in August, 1945. These regulations, in addition to other matters relating to mining, prescribe the conditions and subjects relating to the examinations for mine-managers', battery-superintendents', and dredge-masters' certificates. The regulations also lay down the types of electrical apparatus that may be used in any mine, the conditions under which they may be used, and the safeguards that must be employed.

Coal-mining Acts.—For every coal-mine there must be a duly qualified manager, who must be either the owner of the mine or some person appointed by the owner, and who is responsible for the control, management, and direction of the mine. Section 8 of the Statutes Amendment Act, 1944, prescribes the present qualifications that are required to be hold by managers of coal-mines. Those vary according to the number of men employed in the mine, and also according to whether all the workings are opencast or otherwise. Inspectors of Coal-mines appointed under the Act must hold certificates as first-class mine-managers under the Act. Certain sections of the Act deal with the control of coal-dust, the use of safety-lamps, first-aid endorsement on certificates of competency, the prohibition of work in places where the presence of gas is suspected, and the inspection of the mine before the commencement of work, &c. Suitable housing-accommodation must be supplied for workers if required by notice of the Minister of Mines. Comprehensive regulations pursuant to the 1925 Act, and known as the Coal-mines Regulations, were issued in 1939 and amended in the same year and in 1942, 1947, and 1949.

A levy of ½d. per ton—increased to 1d. per ton as from 1st January, 1948, by the Coal-mines Amendment Act, 1947—on every ton of marketable coal raised from mines is made under the terms of the Act, such moneys forming a fund for the relief of miners injured in the course of employment and of their dependants in the case of death. Information as to miners' pensions (now miners' benefits under the Social Security Act, 1938), provided for originally by the Miner's Phthisis Act of 1915, is contained in Section 26 of this book. A levy of 3d. per ton on all marketable coal raised from mines is authorized by the Coal-mines Amendment Act, 1950, in order to provide amenities in coal-mining districts.

By an amending Act passed in 1927 wages for a period not exceeding six months, payable by the owner of a coal-mine in respect of mining operations, constitute an equitable charge on plant and machinery, with priority over mortgages, &c. Proceedings for the enforcement of the charge must be commenced within twelve months.

An amending Act passed in 1936 provided further measures for the safety of miners. Additional precautions were provided to ensure that unlawful lights, &c., are not taken into mines, and further safeguards were made to alleviate the danger to the health of miners from the presence of dust in mines. Provision was also made for the Minister to establish central rescue stations in coal-mining areas.

The Coal-mines Amendment Act, 1937, contains many provisions designed to ensure the greater safety of workers engaged in coal-mines. No person under the age of twenty-three years may be employed as a mine-manager or other mine official, while certificates of competency as underviewers or firemen deputies must be periodically endorsed by an Inspector of Mines to the effect that the official has passed certain specified efficiency tests. Certain appliances by which coal may be, in effect, screened or sized may not be used underground. A further provision as to housing-accommodation for miners is also included in the amending Act. The Minister may require a mine-owner to pay part of the cost of conveyance of workers to the mine in lieu of providing housing-accommodation. In accordance with section 9 of the Statutes Amendment Act, 1944, the Minister may require underground transport to be provided for workmen where he considers it necessary.

The Coal-mines Amendment Act, 1941, provides that an Inspector may, if he considers it expedient, require a mine, which on the basis of the number of employees might be managed by a person with a certificate lower than that of a second-class mine-manager, to be managed by a person with a higher certificate than that prescribed by the principal Act. He may also require the appointment, for any shift, of officials additional to those normally required. Stricter provision is made regarding the use of lamps. The appointment of an Electrical Inspector of Coal-mines is provided for, and the Board of Examiners is enlarged by the addition of a registered electrical engineer or wireman nominated by the Electrical Wiremen's Registration Board.

Quarries Act.—The Quarries Act, 1944, makes better provision for the regulation of quarries by consolidating (with amendments) the Stone-quarries Act, 1910, and its-amending Acts. The Act contains provisions as to Inspectors, and the appointments, qualifications and duties of quarry-managers. In all cases where three or more men are engaged in quarrying operations at any one time, or where explosives are being used, a qualified quarry-manager must be in charge. This is modified by section 67 of the Statutes Amendment Act, 1945, which provides that a permit to act in the capacity of a manager may be granted to a person who does not hold the necessary certificate in the case of any quarry in which no explosives are used and all the workings are above ground. Adequate rules are provided for the safety of workers, and the prevention of accidents.

SHIPPING AND SEAMEN LEGISLATION.—The first statute relating to this subject was passed in 1858, when the New Zealand Parliament extended the provisions of the Merchant Shipping Act passed by the British Parliament in 1854 to all British ships under the jurisdiction of New Zealand. This Act contained a series of regulations designed for the safety of passengers and crew, and for the amelioration of working-conditions on board ship. Further Merchant Shipping Acts Adoption Acts were passed in 1869, 1873, and 1874, while other Acts followed. A consolidating and amending Act was passed in 1903, which was consolidated with a few minor amendments in 1908, the present law being embodied in that Act.

The Shipping and Seamen Act, 1908, stated that the general superintendence of matters relating to merchant ships and seamen in New Zealand is with the Marine Department. Provision is also made for the registration of ships in New Zealand. It is stated, moreover, that the Act does not apply to ships belonging to His Majesty, nor to ships belonging to the Government of New Zealand. The collision and salvage sections do, however, apply to Government-owned ships. Other provisions relate to masters, officers, and seamen, although some of them do not apply to pleasure yachts, missionary ships, and fishing-boats.

In the following paragraphs a “home-trade ship” refers to a ship employed in trading between any ports of New Zealand, plying in any navigable waters therein, or which goes to sea and returns without proceeding further than fifty miles from the coastline The “minor” islands, Island Territories, and the Chatham Islands, mentioned in Section 1, for the purposes of the Act are deemed to be places outside New Zealand. A “foreign-going” ship accordingly covers any ship not included in the foregoing category.

Hours of Work, Overtime, Holiday, and Wages Provisions.—Under the Shipping and Seamen Amendment Act, 1946, the normal hours of work of seamen, whether at sea or in port, are restricted to eight per day or forty per week. Seamen may be required to work hours in excess of these, but shall be recompensed for the excess (by payment at a higher rate or by the allowance of time off on pay) as may be prescribed by an award or industrial agreement under the Industrial Conciliation and Arbitration Act or by an agreement under the Labour Disputes Investigation Act. Where no such provision in an award or agreement applies, recompense will be made in such manner as may be proscribed by an order of the Court of Arbitration made on the application of a party concerned. “Hours of work” is defined as “time during which the seaman is required by the orders of a superior to do any work on account of the ship or the owner, or to be at the disposal of a superior outside the seaman's quarters.”

Time spent in certain specified work is excluded from the normal hours of work and is not subject to the special recompense for time worked in excess of normal hours. This includes work required for the safety of the ship when in immediate peril or to give assistance to other vessels or persons in immediate peril; musters, fire, lifeboat, and similar drills; normal and necessary work by officers to determine the position of the ship or to take meteorological observations; and work required for the normal relieving of watches.

Holiday provisions are negotiated in the construction of the award applicable, while the benefits of the Annual Holidays Act, 1944, operate as the minimum permissible limit.

The wage-rates on foreign-going ships trading between New Zealand ports are to equal the current rates of wages for such work paid in New Zealand at the same time. This does not apply to ships arriving from abroad, not trading in New Zealand further than to ship or discharge overseas passengers or cargo.

The clearances of foreign-going ships which are required to pay the coastal rate of wages are to be withheld until such wages are paid.

Competence, Safety, Health, and Welfare Provisions.—Adequate provision is made to ensure competence on the part of the controlling officers of ships. Home-trade steamships of 60 tons register and upwards, and home-trade sailing-ships of 100 tons register, must carry certificated mates, and such ships of 100 tons register and upwards trading more than three hundred miles between terminal ports must have second mates. A foreign-going ship is required to carry two certificated mates. Foreign-going certificated mates are entitled to ship as mates in the home trade. It is an offence for a master or owner to engage a certificated officer for the purpose only of enabling the ship to clear and not for the purpose of making the voyage.

Provision is made for issuing certificates of competency to second mates of home-trade ships, and for recognizing as valid in New Zealand certificates of masters, mates, and engineers granted in any part of the British Commonwealth.

Any master or mate may, at any time, be required by the shipowner or the Minister of Marine to be examined in sight tests by the Government Examiners.

Further sections dealing with the safety of the ship require the adjustment of compasses to be carried out under regulations; and power is given to the Minister to define restricted trading limits for steamers and for vessels propelled by oil, gas, &c. The Governor-General in Council is empowered to make regulations as to the loading and stowage of ballast and the loading of grain cargo in bulk. It is an offence to ship wool, flax, tow, or skins in such a condition as to be liable to spontaneous combustion.

Since 1909 there has been a gradual extension of the type of ship required by law to be equipped with radio installations. The regulations now define the nature of the installations and service, and the number and grade of operators in different classes of vessels, and provide for inspection thereof.

The provisions regarding working-conditions on vessels require, inter alia, proper sanitary, hospital, and Lavatory accommodation, including bathrooms, to be provided for the crew, together with an adequate supply of hot water for those employed in connection with the engines, while a prescribed minimum of space for the seamen's quarters is also laid down. Masters and officers who assault seamen on the high seas are liable to imprisonment or fine.

Intercolonial ships—i.e., those trading between New Zealand and Australia, or New Zealand and the central Pacific islands—in addition to home-trade ships are made liable to pay the wages, maintenance, and medical expenses of seamen taken ill in the service of the ship for the remainder of the agreement, not exceeding three months; and, in the case of intercolonial ships, if the agreement expires within one month from the commencement of the illness, payment is to be made for one month after the expiry. The illness which entitles a man to the benefits provided for is one which requires medical treatment for fourteen days.

An amendment to the Shipping and Seamen Act made in 1948, prescribes fines not exceeding £100 in any case of the breach of any safety rules made expressly for those small craft not subject to the provisions of the principal Act relating to survey, &c.

Other Provisions.—Desertion is defined, and deserters who cannot, be dealt with before their ship sails can afterwards be prosecuted by the owner or agent, and copies of the agreement and the entries in the log-book are to be accepted by Courts as evidence. Forfeited wages are to be paid into the Public Account.

The 1950 amendment provides for the deportation from New Zealand of every seaman or apprentice who is convicted of the offence of desertion or absence without leave from his ship. This does not apply to seamen or apprentices engaged in New-Zealand nor to seamen or apprentices from foreign ships. Provisions for the deportation of foreign deserters are already contained in the principal Act and in the Immigration Restriction Act, 1908.

It is unlawful for any person other than the owner, master, mate, or engineer of a ship, or a Superintendent of Mercantile Marine, to engage or supply seamen for ships, and only seamen who have a knowledge of the English language are allowed to ship.

The law as to inquiries into shipping casualties is on the lines of the Imperial Merchant Shipping Act, and provision is made for rehearings, for Magistrates to order a change of venue, and, by the 1948 amendment, for Superintendents of Mercantile Marino to hold a preliminary inquiry where a shipping casualty has occurred. Inquiries are not to be held in Police Courts unless other suitable buildings are not available; and in cases where there has been loss of life, but no damage to the ship, the inquiries may be hold by Coroners.

The risks run and sacrifices made by the crows of vessels under war conditions were recognized by the Government in the passing of the War Pensions and Allowances (Mercantile Marine) Act, 1940. This Act, which made provision for the payment of pensions and allowances to members of the New Zealand mercantile marine and their dependants in respect of death, disablement, or detention as a result of the Second World War, is referred to in some detail in Section 26 of this Year-Book. Seamen also received special bonuses to compensate for the hazardous nature of their occupation during the war period and are now paid a special sea-going allowance.

For the purposes of the Land Act, 1948, replacing the Small Farms Act, 1932–33, the Rehabilitation Act, 1941, and the Servicemen's Settlement Act, 1950, which replaced the Servicemen's Settlement and Land Sales Act, 1943, any person who served during the Second World War in any British ship, which while he was serving therein was damaged or destroyed as the result of enemy action, or who served in any other British ship other than a home-trade ship, is included in the term “serviceman,” thus rendering such person eligible for rehabilitation benefits.

AGRICULTURAL WORKERS ACT.—The primary purpose of the Agricultural Workers Act, 1936, was to make better provision for the accommodation of agricultural workers, and to make special provisions for the remuneration of workers on dairy-farms and for the conditions of their employment. The Act also includes provision for the extension of these special provisions to other classes of agricultural workers, and, as indicated later, Orders in Council have been issued under this provision. Section 4 of the Statutes Amendment Act, 1945, provides that where proposals for the extension to any specified class of agricultural workers have been submitted as required by the principal Act, and the parties are unable to agree, the matters in dispute may be referred to the Court of Arbitration for a recommendation to the Minister. The administration of the Act is in the hands of the Labour Department, which also administered the Agricultural Labourers' Accommodation Act, 1908 (repealed by the present Act).

Another important measure dealing with farm workers is the Share-milking Agreements Act, 1937, which defined the respective responsibilities of employers and share-milkers in farm-management and control of stock, and prescribed the minimum percentages of returns to share-milkers. The Act contains provision for terms and conditions to be altered by Order in Council, and the latest agreement is contained in the Share-milking Agreements Order 1946, which came into operation on 4th September, 1946.

Orders in Council extending the operation of the provisions of the Act to other classes of farm workers have been issued from time to time—orchard workers as from 1st February, 1937; workers on farms or stations used for the commercial production of wool, meat, or grain (including seed), whether exclusively or together with any other purpose, as from 1st May, 1937; agricultural workers in market gardens, nurseries, &c. in the Wellington, Nelson, Canterbury, Otago and Southland, and Northern Industrial Districts as from various dates between 22nd April, 1938, and 29th May, 1939; and agricultural workers employed in the tobacco industry, as from 1st October, 1941. The orders do not apply to workers covered by awards or agreements under the Industrial Conciliation and Arbitration Act.

Hours of Work and Overtime.—In the case of orchard workers the maximum hours that may be worked without payment at overtime rates are eighty per fortnight from the 1st June to the end of September, and eighty-eight per fortnight from the beginning of October to the 31st May. These are to be worked from Monday to noon Saturday except in necessitous cases and in the picking of stone-fruit. In the shorter period the maximum hours to be worked at ordinary rates are not to exceed eight daily, and in the longer period ten hours per day. Overtime rates are payable in respect of hours worked outside the limits mentioned.

The ordinary hours of work for those employed in market gardens, nurseries, &c., are not to exceed forty-four in any one week and are to be worked within the five and half days, Monday to noon Saturday inclusive. In addition, no worker is to be employed for more than five hours continuously without an interval of three-quarters of an hour for a meal. Time worked beyond the limits quoted are to be paid for at overtime rates.

Agricultural workers employed in the tobacco industry during the months of May to December work at ordinary rates for eight hours daily from Monday to Friday, with a maximum of forty hours a week. Those employed in the field section during the remaining months may be worked an additional eight hours per week. Otherwise, employment is given remuneration at overtime rates A three-quarters of an hour interval is allowed for a meal in the case of shed workers and an hour for those in the field section.

Holiday Provisions.—Every agricultural worker who is employed on a dairy-farm for not less than four weeks continuously is to be allowed a holiday on full pay plus an amount equal to the full allowance for board and lodging. The duration of the holiday is to be not less than seven days in the aggregate for every twelve weeks of employment, and a proportionate period for every broken period of employment. If a regular weekly half-holiday commencing at noon is allowed, a holiday of fourteen days a year (or proportionate duration for a lesser period of employment) will be regarded as sufficient compliance with the Act. The provisions of the Annual Holidays Act, 1944, apply generally to agricultural workers. The following specific conditions pertain, however, in respect of workers on farms and stations: Farm workers are entitled to seven statutory holidays; twelve working-days' annual leave on full pay for each twelve months' service, with a proportionate allowance for service of less than one year; and a half-day each week, amounting in the annual aggregate to not fewer than twenty-six half-days per annum; while the sum total of all three classes is not to be less than thirty-four days in each year. Orchard workers are allowed nine days, while workers in the tobacco industry (field section), and in market gardens are allowed eight clays on full pay in addition to normal annual holidays.

Minimum Rates of Pay.—By the principal Act minimum weekly rates of pay were prescribed for workers on dairy-farms. The Act fixed the rates to operate from 1st October, 1936 (the date the Act came into force), until 31st July, 1937, and subsequent rates of pay were to be fixed by Orders in Council. In fixing such rates the guaranteed prices paid in respect of primary produce were to be taken into account, but future rates were not to be lower than those fixed by the Act. The 1951 minimum rate is £7 5s. 6d. per week, increased by £1 8s. 9d. per week if the worker is not provided with board and lodging by the employer. This rate is taken to include allowance for work done at weekends and on holidays as part of the normal week's work. Minimum rates of pay for casual workers are contained in all the extension orders made so far. At present (April, 1951) the minimum rate for workers in casual employment and for permanent adult male workers on tobacco farms amounts to 3s. 11d. per hour, with lesser rates for male and female workers according to specified ages, and for harvesters on dairy farms 3s. 11d. per hour with rations. In the case of workers on farms and stations, for whom the hours of work are not definitely laid down, the rates applicable are given in the 1951 amendment to the Agricultural Workers (Farms and Stations) Extension Order 1949, the minimum rate for an adult male worker being £6 2s. 6d. per week, increased by £1 8s. 9d. per week if the worker is not provided with board and lodging by the employer, or by £1 2s. 9d. per week if provided with only lodging or free house. The minimum rate of wages for persons permanently employed in orchards and on market gardens are prescribed on the appropriate 1951 amendments to the extension orders concerned—e.g., £7 16s. 8d. per week in the case of adult male workers in market gardens, £8 1s. for the same class of worker in orchards, &c.

Restrictions on Employment.—No child under the age of fifteen years may be employed for hire on a dairy-farm or in market gardens, except for the harvesting of peas, beans, tomatoes, and soft fruits.

Health and Welfare Provisions.—The sections of the Act in relation to the accommodation of agricultural workers lay down definite requirements for the comfort of such workers, and Inspectors of Factories have power to inspect the accommodation and to require that improvements be made where necessary. In the various extension orders made under the authority of the principal Act, regulations are made dealing explicitly with questions of accommodation, sanitation, ventilation, &c. A number of orders also prohibit the lifting of excess weights by females.

Other Provisions.—Provision exists for the employment of “under-rate” workers with the consent of the Inspector of Factories. An amendment to the main Act made by a section in the Statutes Revision Act, 1936, permits the Inspector to apply the underrate provisions in respect both of money wages and of the amount (if any) payable in lieu of board and lodging in cases of female workers employed on farms. This amendment is of considerable importance since the employment of women workers for short periods of the day—notably at milking-time—is common on dairy-farms. Regulations governing the employment of “under-rate” workers are now included in all the extension orders now current.

INDUSTRIAL CONCILIATION AND ARBITRATION LEGISLATION.—Working-conditions given in the preceding pages were those contained in some specific statute or regulations made thereunder. However, for a Large proportion (approximately one-third) of the labour force the determining factor is the series of awards and agreements issued by the Court of Arbitration under the authority of the Industrial Conciliation and Arbitration Act, 1925, and amendments. The number of awards and agreements in force is quite large—580 on the 31st March, 1950—and as each is subject to individual negotiation by the unions or associations concerned during its construction, it is evident that possible variations preclude any systematic treatment herein of the provisions of such a large number.

The 1936 amendment to the principal Act stated that where it is deemed practicable the Court must fix the maximum hours of work per week (exclusive of overtime) at forty, while existing awards may be reviewed to this end on application. At present the provision of a forty-hour week is quite general. Included in the respective awards and agreements are provisions covering the hours of work, overtime, holidays, safety, health, and welfare. Rates of remuneration, subject particularly in the lower limits to the more widely applicable decisions covering the basic wage, general orders, standard-wage pronouncements, and minimum wages, are also decided and incorporated in the relevant award or agreement.

It will be realized from the above comments that for information on the actual-working-conditions governing employment in any particular industrial activity, reference must be made to the award or awards applicable.

LEGISLATION GOVERNING WORKING-CONDITIONS IN THE VARIOUS BRANCHES OF THE GOVERNMENT SERVICE.—The principal measures which are concerned with the majority of persons employed either directly or indirectly by the State and which have reference to their working-conditions are given in the succeeding paragraphs.

The Public Service Act, 1912, as amended by the Public Service Amendment Act, 1946, provided for the control of the Public Service by a Commission as from the 1st November, 1946. Included in the functions of the Commission are the control of recruitment, maintenance of discipline and of a fair and efficient system of promotion, and also the regulation of a variety of points connected with personnel control—e.g., leave, hours, of work, payment of allowances, &c.

The Government Service Tribunal Act, 1948, provided for the establishment of a tribunal with functions, in relation to the remuneration and conditions of service of employees, of making (a) principal and other orders, and (b) recommendations to the Prime Minister on any matters other than those contained in the principal orders.

The Government Railways Act, 1926, with its 1936 and 1944 amendments (consolidated in 1949) furnish the legislative framework for determination of the working-conditions of railway employees. The 1944 amendment established the Government Railways Industrial Tribunal, the principal functions of which are to prescribe scales of salaries and rates of wages; conditions in regard to hours of work, overtime, &c.; and terms and conditions in respect of leave of absence, railway travel concessions, &c.

Working-conditions for Post and Telegraph Department employees are determined by the administrating authority, the Postmaster-General and Minister of Telegraphs, with the Director-General as executive head. Power is vested in the Minister by virtue of the Post and Telegraph Act, 1928, while the 1944 amendment established a Post and Telegraph Staff Tribunal whose function it is to make recommendations to the Minister on such matters as may be referred to it by the Minister, the Director-General, or the New Zealand Post and Telegraph Association (Incorporated).

Other legislative enactments which apply to the relevant sections of General Government employees are as follows: Members of the Police Force are governed by the Police Force Act, 1947, which consolidated and amended the 1913 Act of the same title and its amendments. The three fighting Services are controlled at present by the Defence Act, 1909, the Naval Defence Act, 1913, the Army Board Act, 1937, and the Air Force Act, 1937, together with their amending Acts. The New Zealand Army Act, 1950, to come into force at a date to be proclaimed by the Governor-General, will in future control the Army, and the Defence Act, 1909, and the Army Board Act, 1937, will be repealed as from that date. The Air Force will in a similar manner be controlled by the Royal New Zealand Air Force Act, 1950, which repeals the Air Force Act, 1937.

The Education Act, 1914, and later amendments provide the legislative background authorizing, either by regulation or through the agency of Education Boards, the determination of the conditions of employment, pay, leave of absence, &c., for the members of the teaching profession.

In 1948 the Hospitals Amendment Act was passed which altered the title of the principal Act by omitting the words “and Charitable Institutions.” In consequence, the provisions relating to working-conditions of Hospital Board employees such as nurses, &c., will be found in the Hospitals Act, 1926, and its amendments, while the Hospital Employment Regulations 1948 bear directly on these matters.

Before concluding this subsection, reference must be made to two further groups of workers. The first of these consists of public-works employees, while the other comprises those persons coming within the scope of the Waterfront Industry Emergency Regulations 1946.

In a statement of public-works policy laid before Parliament in 1936 the Government's policy in relation to public-works employees was outlined. An agreement was drawn up dating from the 1st June, 1936, the main provisions of which were embodied in subsequent agreements, although subjected to amendment and revision from time to time to meet changing conditions. With the termination of the latest agreement in March, 1949, the Government Service Tribunal, established under the 1948 Act of similar title, became the authority for determination of rates of remuneration and working conditions generally for public-works employees.

The Waterfront Industry Emergency Regulations 1946, as amended in 1948, established two bodies to provide for the more efficient control of waterside work. The superior of these two—viz., the Waterfront Industry Authority—is charged with deciding the conditions under which any persons may be employed for waterside work, the terms of any such employment, including remuneration, holidays, guaranteed minimum payment, &c., whereas the subordinate authority, known as the Waterfront Industry Commission, is more concerned with the day-to-day details of administration. In particular, the Commission may not issue or amend any order prescribing any conditions or terms of employment which are of general application, except in accordance with a decision or direction from the Authority or as a result of a unanimous resolution of the Commission. Appeals from decisions or orders of the Commission are determined by the Authority.

39 C—WAGES AND WAGE-RATE LEGISLATION; STABILIZATION

WAGES AND WAGE-RATES—GENERAL.—The amounts of wage-rates generally have been influenced largely by the rates specified for individual industries and occupations in awards and industrial agreements registered under the Arbitration Act. As mentioned previously, certain classes of workers for many years had no legal protection in the matter of wage-rates; while, again, until the passing of the Shops and Offices Amendment Act, 1936, many classes of office workers were in a similar position.

More than one criterion has been employed in the derivation of minimum rates of pay. Changes in the cost of living have been taken into account at certain times; on some occasions family considerations have entered into the determination; while the size of the working population covered by the minimum-rate provisions differs appreciably according to the particular variant of minimum rate or wage considered.

For the convenience of the reader the essential differences between the various expressions of the minimum wage-rates are here summarized. The basic wage (a defined amount) was intended to enable a man to maintain a wife and three children in a reasonable standard of comfort. As prescribed by the Industrial Conciliation and Arbitration Court in a general order in 1936, the basic wage became a minimum wage for all workers governed by awards. Standard rates or standard wage pronouncements prescribe basic rates (not amounts) for different grades of labour—e.g., skilled, semiskilled, or unskilled workers—for use as general principles governing the construction of award rates. There is no automatic application to awards, each being amended individually on application, or on the Court's own motion, or on a fresh award being made. General orders, on the other hand, have the effect of amending all award rates simultaneously as from the date specified in the order. The Minimum Wage Act, 1945, prescribes minimum amounts of wages for adult males and females, but these differ from the basic wage, which in effect they have superseded, in that no reference is made to the maintenance of any defined standard in the former. An important feature of the 1945 minimum-wage legislation is the much wider section of the working population to which its provisions relate. The minimum wages specified therein apply whether an award exists or not, and also notwithstanding anything contained in any award.

Against the background of these general remarks it is now intended to survey each of the various forms of minimum wage-rates.

Basic Wage.—The New Zealand Arbitration Court functioned for many years before the question of a basic wage was specifically dealt with by the Court. (It is of interest at this point to mention that a basic wage was brought into operation by the Federal Arbitration Court in Australia in 1907.)

The Industrial Conciliation and Arbitration Amendment Act, 1936, inter alia, requires the Arbitration Court to fix basic wages for adult male and female workers. Orders of the Court made to this end may be amended at not less than six-monthly intervals by a subsequent general order. The basic wage for adult male workers is required to be fixed at a weekly sum which will, in the opinion of the Court, be sufficient to maintain a man, wife, and three children in a fair and reasonable standard of comfort. A general order fixing basic wages for adult male and female workers was issued by the Arbitration Court on 2nd November, 1936. The weekly amounts were fixed at £3 16s. for adult male workers and at £1 16s. for adult female workers. The basic wage applies (as an absolute minimum) to all workers twenty-one years of age and over (excepting casual workers and those working under apprenticeship contracts) the conditions of whose employment are fixed by any award or industrial agreement. The basic wage, still nominally in force, although in effect superseded by the minimum wage, has not up to the present time (April, 1951) come up for review by the Court.

Minimum Wage.—The Minimum Wage Act, 1945, as stated earlier, makes provision for a minimum wage for all workers of twenty-one years of age and upwards with certain minor exceptions, notwithstanding anything to the contrary contained in any enactment, award, industrial agreement, or contract of service. A contrast may hero be drawn between the procedure adopted in the case of the minimum wage with that pertaining in regard to the basic wage or standard rates of wages. The former is directly stated in legislation, while the latter appear through the medium of the Arbitration Court.

The Minimum Wage Act may be amended from time to time as fresh pronouncements of standard rates are made if it is desired to preserve a balance between minimum wages and standard rates. In this reference it will be noted that the minimum wage for males is set at a rate which is lower than the standard rate for unskilled labour.

The Act came into force on 1st April, 1946. Since that date the Minimum Wage Amendment Acts, 1947, 1949, and 1950 have been passed, the prescribed minima to operate from 1st September, 1950, being as follows, while those for the earlier periods are also shown.

Category.1st April. 1946, to 30th November, 1947.1st December, 1947, to 31st August, 1949.1st September, 1949, to 31st August, 1950.1st September, 1950, Onwards.
Males—£s.d.£s.d.£s.d.£s.d.
  Paid by hour or by piecework029030033035
  Paid by day120140160174
  Otherwise (per week)55051506506118
Females—            
  Paid by hour or by piecework018011102202
  Paid by day0134015401740184
  Otherwise (per week)3303130430480

Standard Rates of Wages.—Under the War Legislation and Statute Law Amendment Act, 1918, the Court was required to review on application existing awards and industrial agreements, taking into consideration, inter alia, changes in the cost of living. The Court in April, 1919, made a pronouncement fixing, in effect, standard rates of wages for skilled, semi-skilled, and unskilled workers. No definite family unit was stated as the basis on which these standard rates were calculated, the minimum pre-war award rates for unskilled labour, with appropriate adjustment, being apparently used as a base. A cost-of-living bonus, varied at half-yearly intervals in sympathy with movements in the cost of living, was added to these standard rates. In September, 1925, a further pronouncement was made by the Court, standard minimum rates being fixed as follows:—

 Per Hour.
 s.d.
Skilled workers23
Semi-skilled workers111 to 2 1½
Unskilled workers110

The legislation by which the Court was empowered to make general orders having expired, the new rates—which represented an increase on those operating before—were brought into operation as individual awards expired. As in the 1919 pronouncement, no definite family unit was taken as the basis of assessment of the standard rates, which were, in general, stated to be somewhat in excess of 60 per cent. above the rates ruling in 1914.

No further pronouncements directly relevant to the subject were made until 1931. The Finance Act of that year empowered the Arbitration Court to amend, by general order, awards or industrial agreements with respect to rates of remuneration. Rates of remuneration under awards or industrial agreements were reduced by 10 per cent. as from 1st June, 1931, with certain minor exceptions.

Full or partial restoration of this cut was effected in the case of several individual awards made in 1934 and 1935, while complete restoration was effected in respect of all awards by a section in the Finance Act, 1936. This Act went further: it required the restoration as from 1st July, 1936, of all cuts in wages and salaries imposed during the depression period, whether the workers concerned were working under an Arbitration Court award or not.

In September, 1937, the Arbitration Court made a pronouncement on standard wages. The following minimum rates were set out in the Court's pronouncement:—

 Per Hour.
 s.d.
Skilled workers29
Semi-skilled workers25 to
 2
Unskilled workers24

In March, 1945, the Court of Arbitration made a further pronouncement specifying standard rates of wages in accordance with the provisions of the June, 1945, amendment to the Economic Stabilization Emergency Regulations 1942. These rates were as follows:—

 Per Hour.
 s.d.
Skilled workers3
Semi-skilled workers28½ to
 211
Unskilled workers2

The 1945 rates were net rates, for the full minimum wage-rates would have to take into account in addition the provisions of the two general orders, effective from the 12th August, 1940, and 7th April, 1942, respectively, issued by the Court under the Rates of Wages Emergency Regulations 1940. (The first of these orders awarded a 5–per-cent. increase in all rates of remuneration in awards, industrial agreements, &c., while the second authorized a further 5-per-cent. increase subject to certain limitations.)

An application made pursuant to Regulations 39B and 39C of the Economic Stabilization Emergency Regulations 1942 for a pronouncement specifying standard rates of wages resulted in new standard rates being set out to apply from 1st October, 1947. In this case full minimum rates of wages were prescribed, thus eliminating references to the application of the general orders. The standard rates from 1st October, 1947, were as follows:—

 Per Hour.
 s.d.
Skilled workers37
Semi-skilled workers32½ to
 35 2/4
Unskilled workers3

In February, 1949, two applications for a new standard-wage pronouncement were laid before the Court of Arbitration. The occasion was unique, in that one of the applications was supported by the New Zealand Federation of Labour and the other supported by the New Zealand Employers' Federation. Both were made under Regulation 39B of the Economic Stabilization Emergency Regulations 1942. Before any steps had been taken for the hearing of the applications, a further amendment in February, 1949, was made to the Economic Stabilization Emergency Regulations 1942. This amendment redefined the considerations which the Court was to take into account in making a pronouncement on standard rates and also provided that the new amendment was to apply to every application under the principal regulations that was pending at the time of issue of the amendment. There were other provisions, the effects of which have also been incorporated in the following article on stabilization (refer page 754).

The Court, subsequent to the hearing, made a pronouncement on standard rates of wages on the 12th April, 1949, as given briefly below. It also provided that any consequential amendments to awards, &c., were to date from the 1st June, 1949.

 Per Hour.
Adult male workers—s.d.
Skilled workers311
Semi-skilled workers36 to
 3
Unskilled workers35

It is noted that the margin between the standard rate for unskilled workers and that for skilled workers has been increased from 5½d. per hour to 6d. per hour. The reasons given for this increase may be of interest.

Over a number of years the effective margin of the artisan in terms of purchasing-power has been steadily declining, while efforts have been made simultaneously to increase the skilled-labour force. Measures have been or are being token to revitalize the apprenticeship system and improve the training of tradesmen, including the proposed inauguration of more comprehensive and exacting trade examinations. In these circumstances, it was thought that an improvement in the flat margin for skill should be granted.

In the amendment of awards and industrial agreements as a result of the 1949 pronouncement, the rates for adult female workers were to be increased in general by such an amount as would bring them to a level approximately 10s. per week above the rates operating from the 1st October, 1947. Rates for junior workers of both sexes were to be adjusted proportionately.

A standard rate pronouncement is not itself a general wage order and has therefore no operative effect. It is merely an indication of the rates of wages up to which the rates prescribed for skilled, semi-skilled, and unskilled workers in a certain number of awards and industrial agreements are likely to be brought by means of individual amendments. They do not, of course, affect those variations in wage-rates prescribed in the different, awards, &c., which are due to variations in skill required and in working-conditions generally in different industries or occupations.

Standard rates of wages can be regarded as serving two purposes. The first is to serve as general principles to which the Court will have reference in the implementation or amendment of existing award rates. The second is that they, in effect, serve as general standard minima for casual labour. They are not necessarily applicable when employment is regular throughout the year.

Award Rates.—Under section 99 of the Industrial Conciliation and Arbitration Act, 1925, the Court is empowered to fix minimum rates of pay in individual awards. The nature of award rates is generally understood, and as the rates may and do vary as between awards there is no necessity to further elaborate here. A table showing the average minimum weekly wage-rates, incorporated in awards for certain occupations, will be found in Section 38 of this issue (pages 720–722).

General Orders.—The Arbitration Court had power under the Rates of Wages Emergency Regulations 1940 to make general orders amending all rates prescribed in awards as from the dates specified in the orders. Two such orders were made increasing wages as from 12th August, 1940, and from 7th April, 1942 respectively. As stated above, the effect of these orders was taken into account in the 1947 standard wanes pronouncement. An amendment made in March, 1949, to the Economic Stabilization Emergency Regulations 1942 revoked the Rates of Wages Emergency Regulations 1940. General orders could, however, still be made under the Economic Stabilization Emergency Regulations 1942 until the revoking of the emergency regulations by the Economic Stabilization Regulations 1950. In the latter regulations the former provisions relating to the issue of general orders were retained, while a May, 1950, amendment provided for, in effect, the issue of an interim general order. Such an order is to be disregarded for the purpose of determining the date at which any general order made on application shall take effect.

An interim order was made by the Court of Arbitration on the 10th June, 1950, amending all awards and industrial agreements to increase by 5 per cent. all rates of remuneration on amounts up to and including £7 per week in the case of adult male workers, and £4 15s. in the case of adult female workers and all junior workers.

A further general order, effective from the 15th February, 1951, revoked the interim order, and increased all rates of remuneration by an amount equal to 15 per cent. (not restricted to any fixed amount). This latter increase is in substitution for, and not in addition to, the 5 per cent. increase given in the interim order. Certain specified awards were excluded from the operation of the February order, comparable increases having been incorporated in their construction subsequent to the interim order.

Special Provisions Covering Wages of Certain Groups of Workers.—Certain groups of workers have their wages fixed by special authorities. Minimum rates for agricultural workers are prescribed by the Agricultural Workers Act, 1936, and the various Extension Orders made pursuant to section 20 of that Act. Rates of remuneration for waterside work are fixed by the Waterfront Industry Authority, constituted under the 1948 amendment to the Waterfront Industry Emergency Regulations 1946. Determination of wages in coal-mines lies within the scope of the Coal-mines Council, established under the Coal-mines Council Emergency Regulations 1940. Rates of pay for workmen engaged on public-works construction from 1949 have been determined by the Government Service Tribunal and issued in the form of principal and other orders by that Tribunal.

Salaries and wages in the railways are, by the Government Railways Amendment Act, 1944, prescribed by the Government Railways Industrial Tribunal. The legislative authority covering rates of remuneration for employees of the Post and Telegraph Department is contained in the Post and Telegraph Act, 1928, and the 1933 amendment, while certain questions may be referred to the Post and Telegraph Staff Tribunal, established by the 1944 amendment to the principal Act.

Public servants in the Professional and Clerical Divisions were paid according to rates prescribed under regulations authorized by section 19 of the Appropriation Act, 1920, and those in the General Division according to scales determined by the Public Service Commission (see Public Service Act, 1912, section 22). In 1948, however, the Government Service Tribunal Act was passed vesting the Tribunal with powers of making principal and other orders in relation to remuneration.

Pay and allowances for the Armed Services at present are prescribed in regulations under the Defence Act, 1909, the Naval Defence Act, 1913, and the Air Force Act, 1937, respectively, the future statutory authority for the three services being the Naval Defence Act, 1913, and its amendments, New Zealand Army Act, 1950, and the Royal New Zealand Air Force Act, 1950. Salary and wage rates for Hospital Board employees are covered by the Hospitals Act, 1926, and the Hospital Employment Regulations 1948. Two other groups of employees may be also mentioned, members of the Police Force coming under the Police Force Act, 1947, and finally members of the teaching profession, whose rates of remuneration are generally determined by authority of the Education Act, 1914, and amendments.

An interesting innovation made by the Arbitration Court in 1928 was the award of that year whereby the wages of shearers and other wool-shed hands were fixed at a rate fluctuating with the movement of wool prices as determined by the. Government Statistician's index number for export prices of wool. The system did not operate between 1931 and 1933, workers and employers being unable to agree as to rates, though both parties expressed approval of the principle. The award of 1933 contained provision for the resumption of the sliding-scale system. Commencing with the award for the 1948–49 season, a variation was made in the method of calculating the rates of pay for shearers and other wool-shed hands. The new procedure is that rates shall be adjusted proportionately with the movements of an index number to be prepared by the Government Statistician based on average prices realized at New Zealand sales for greasy wool (calculated for June years).

In referring to the general question of wage-rates it is relevant to draw attention to the supplementary income which is provided by benefits available under the Social Security Act in certain cases, while the War Pensions Act is of significance also in this connection (see Section 26).

STABILIZATION.—Stabilization as an explicitly stated object of policy came to the forefront early in the Second World War. It had long been realized that in wartime the normal supply or flow of goods would be restricted, particularly so in the case of imports, but also in some degree in the field of local production. This factor, reinforced by others such as the progressive withdrawal of elements of the labour force for service with the Armed Forces, changes in the extent and character of industrial activity and in the labour force generally, and the necessity of financing a costly war, would inevitably exert an upward pressure on the wage and price structures of the country. It was equally necessary to limit or confine upward movements in these structures in so far as this procedure could be made effective or practicable. Measures to this effect were authorized, evolving into a fairly comprehensive system of regulations covering the general fields of price control, wages stabilization, rent stabilization, direction of man-power, subsidies, &c. After the close of war some of these measures were dispensed with, while others were retained and relieved of their emergency status by further legislation.

While wages stabilization is the main theme of the following paragraphs, other aspects of stabilization will be found elsewhere in this issue (rents, Subsection 39G; prices, Section 37; and subsidies, Section 18A).

The initial legislative step in the control of wages and remuneration was the gazetting of the Rates of Wages Emergency Regulations 1940, which with its amendments were revoked by the 1949 amendment to the Economic Stabilization Emergency Regulations 1942. The 1940 regulations provided that the Arbitration Court from time to time, on application, might amend by general order the provisions of all awards and industrial agreements, but that in making such a general order the Court was to take into account certain economic conditions. As these qualifications were largely superseded by the Economic Stabilization Emergency Regulations issued in 1942, it will be more profitable to proceed to a survey of the latter.

In regard to the Economic Stabilization Emergency Regulations 1942, as subsequently amended up to and including the amendment of February, 1949, the main features of importance may be summarized as follows. Basic rates of remuneration were defined as the actual rates as at the 15th December, 1942, or as determined by the Wages Commissioner or Commissioners (formerly Conciliation Commissioner) appointed under the regulations. These basic rates were not to be exceeded except with the approval of the Wages Commissioner, which might be granted wholly or in part on the following grounds:—

  1. That the person was employed in any additional position, employment, duties, or work, or in work involving additional risk to life or health.

  2. That an increase was necessary for removal of anomalies.

  3. That when the basic rate was determined, remuneration was being paid at an abnormally low rate or no remuneration was being paid.

  4. That an increase was necessary to restore or preserve a proper relationship with rates of remuneration of other classes of workers or with any standard pronouncement made by the Court of Arbitration for the purposes of these regulations. Appeals against the decisions of the Wages Commissioner could be made to the Court of Arbitration.

An important regulation provided that the Court, in exercising its functions in relation to the making or amendment of awards or apprenticeship orders, or in approving any industrial agreement, should have regard to the general purpose of these regulations and also to restoring or preserving a proper relationship with other rates of remuneration. A similar provision covered applications for revised tool and special clothing allowances, &c. In determining award rates, a clause now deleted provided that no regard should be had to fluctuations in the cost of living. This factor was and still is subsumed under those conditions to be taken into account in pronouncements of standard rates or in the making of general orders.

Again, subject to the provisions of the Economic Stabilization Emergency Regulations 1942, the Court was empowered from time to time of its own motion or on application of any industrial union or association to make pronouncements specifying standard rates of wages for skilled, semi-skilled, and unskilled workers. On application the Court could also amend, by general order, those provisions of all awards and industrial agreements for the time being in force which determined the rates of remuneration. Any change specified in such a general order was also applicable to any case wherein the actual rate of remuneration exceeded that to which the worker was entitled under an award. Provision existed for a general order to be made on an application for a standard-wage pronouncement, and vice versa. In either case no further pronouncements or general orders could be made within one year of the date on which a previous pronouncement had been made or a general order had taken effect.

To assist in the furtherance of the objects of stabilization generally, the regulations laid down that the Court should take into consideration the following conditions in making any pronouncement or general order:—

  1. The general purpose of these regulations.

  2. Any rise or fall in retail prices as indicated by any index published by the Government Statistician.

  3. The economic conditions affecting finance, trade, and industry in New Zealand.

  4. Relative movements in the incomes of different sections of the community.

  5. All other considerations that the Court deemed relevant.

The condition (b) quoted above was substituted by the February, 1949, amendment for the earlier one requiring an index of prices known as the Wartime Price Index to be prepared and published quarterly for the purposes of the regulations.

Most of the features outlined were similarly applicable to apprenticeship orders, except where these were already covered by reason of the fact that rates of remuneration of apprentices might in some cases be fixed as proportions of the rates fixed from time to time for journeymen.

In pursuance of the policy of stabilization, and probably indicative of its importance in the post-war era, the passing of the Economic Stabilization Act, 1948, is of significance. The general purpose of this Act (as of former Emergency Regulations also) is to promote the economic stability of New Zealand. In addition to the administration of the Act, the Minister of Industries and Commerce is charged with the general function of including what is considered necessary for the general purpose of this Act, and in particular for the stabilization, control, and adjustment of prices of goods and services, rents, other costs, and rates of wages, salaries, and other incomes. Authority for the appointment of a Director of Stabilization was also given. The Act further provided for the establishment of the Economic Stabilization Commission with the principal function of making recommendations, after inquiry and investigation, in relation to the economic stabilization of New Zealand and the functions of the Minister under the Act. There are at present (April, 1951) no appointed members of the Commission, its functions being discharged by the Minister in Charge of Stabilization except that those functions of the Commission relating to the marketing and prices of primary products are now dealt with by the Marketing Advisory Council, which reports to the Minister of Marketing.

By Order in Council, stabilization regulations may be made from time to time for giving full effect to the provisions and administration of the Act, including regulations for all or any of the following purposes:—

  1. Regulating the marketing of any goods or classes of goods for the general purpose of the Act.

  2. Equalizing, as for as possible, the net returns received or payable in respect of any goods or classes of goods, and for that purpose imposing levies on any goods or classes of goods.

  3. Recovery of subsidies paid out of public moneys in respect of any goods or classes of goods.

  4. Providing for the appointment of officers and committees and other bodies, and defining their functions and powers.

From the point of view of this section it was of interest to note that certain of the Economic Stabilization Emergency Regulations 1942 (as summarized earlier) were continued in force as stabilization regulations. The necessary powers are also given enabling information required for the purposes of the Act or any stabilization regulation to be obtained, and also for the prescription of offences and penalties.

The 1942 emergency regulations were, however, revoked by the Economic Stabilization Regulations 1950, the general tenor of which is contained in the following paragraphs, together with any significant differences from the provisions of the earlier emergency regulations.

In exercising its powers in relation to the making or amendment of awards or apprenticeship orders, or the approval of industrial agreements, the Court of Arbitration is to have regard to the general purpose of the Economic Stabilization Act, 1948. The former provision requiring it to have regard to a proper relationship between the rates of remuneration of different classes of workers is omitted, though, of course, this factor may form one of the considerations that may be taken into account by the Court. The control of maximum rates of remuneration is abolished, while the application of a general order to rates of remuneration paid in excess of award rates is not now automatic.

The provisions as to standard wage pronouncements by the Court of Arbitration in the earlier emergency regulations are omitted from the 1950 stabilization regulations, although there is no restriction on the inherent power that the Court has always had to make such pronouncements at any time.

The Court is empowered to make general orders of its own motion or on application, amending those provisions of all awards and industrial agreements in force relating to rates of remuneration. No general order made on application shall take effect less than one year after the date on which any previous general order has taken effect, but the Court can make a general order of its own motion at any time. The former provisions excluding special classes of workers from general orders, and application of such orders to apprentices are retained, as is the provision requiring industrial agreements to be filed after first being approved by the Court.

In making a general order the conditions which the Court is required to take into account are substantially the same as those set out on page 756 under the 1942 regulations, except that condition (a) is worded “The general purpose of the Economic Stabilization Act, 1948.” When fixing tool, clothing, and vehicle allowances the Court is to have regard to changes in costs.

A May, 1950, amendment to the regulations makes provision for the issue of an interim general order by the Court of its own motion, which for the purpose of determining the time at which any general order made on application can take effect, may be disregarded, although adjustment of rates in a final order is not retrospective in operation.

PROTECTION OF WAGES.—Workers' wages were first safeguarded by the Truck Act of 1891, which ensured to workers the payment of their wages in full in coin of the realm. This was followed by a series of Acts—the Contractors' and Workmen's Lien Act, 1892, the Workmen's Wages Act, 1893, the Threshing-machine Owners' Lien Act, 1895, the Wages Attachment Act, 1895, and the Wages Protection Act, 1899—all aimed at making the payment of wages more certain and secure, and at limiting creditors' rights to attach future earnings.

This code was consolidated into the Wages Protection and Contractors' Liens Act of 1908, which operated until it was superseded by the Wages Protection and Contractors' Liens Act, 1939. The re-enactment is substantially the same as the 1908 Act except for the omission of several sections relating solely to wages protection, which were largely duplicated by the sections dealing with workers' liens.

Some of the more salient provisions of the Act, as it now operates, are set out below.

In the absence of any written agreement to the contrary, wages of manual workers are to be paid at intervals of not more than a week, and of other workers at intervals of not more than a month. The attachment of workers' wages for debt is prohibited except in the case of any surplus over £2 a week or when specific provision is made in any other Act for attachments on a lower minimum. Exceptions are made by the Industrial Conciliation and Arbitration Act, 1925; the Child Welfare Act, 1925; and the Destitute Persons Act, 1910. The Coal-mines Amendment Act, 1941, provides for deduction from wages, with the written consent of the employee, of sums towards repayment of principal or payment of interest, &c., in respect of advances by the mine-owner to the worker for the purpose of acquiring a home. Section 7 of the Finance Act, 1942, provides for deduction from the salary or wages of a taxpayer who has made default in the payment of income-tax.

The Act prohibits payment of wages being made in goods (truck) or in any other way than in money or by approved cheque, and also prohibits any stipulation as to how the wages-money is to be expended. The truck provisions do not, however, apply where the employer supplies house accommodation, board and lodging, fuel, medical assistance, materials, tools, and the like required for the work, nor to seamen or farm workers.

A contractor, subcontractor, and any worker is entitled to obtain liens on the lands or chattels of the employer upon giving due notice, and the employer must then retain in his hands sufficient of the contract-moneys to satisfy and guarantee payment of the claimant's dues, but the total amount recoverable may not exceed the amount due under the contract. In addition, the Act (as amended by section 59 of the Statutes Amendment Act, 1940) directs that the employer or contractor (where a subcontract is entered into) shall retain in his possession, whether or not he has received notice of any lien or charge, one-quarter of so much of the contract price as has for the time being become immediately payable, until thirty-one days have elapsed after the completion of the contract.

In the matter of priority of liens and charges the order is as follows: (1) The claims of workers for wages not exceeding three months' wages and not exceeding £50; (2) the claims of workers for wages not included in the foregoing, and the claims of subcontractors; and (3) the claims of contractors. If notice of a lien or charge is not made before the completion of the contract or within thirty days of the completion, the claim will lose priority as against other claims of its own class, but will come before claims of the succeeding class.

All attachments or assignments granted by any employer or contractor are void against the charges or liens of subcontractors or workers for money due under the contract, except in the case of mortgages on land registered before the liens; in that case the mortgage has priority over the lien. If the mortgagee is a party to the contract, or if the mortgage secures any money that is advanced after notice of the lien has been given to the mortgagee, the lien has priority over the mortgage. If, in the case of the death or bankruptcy of a person entitled to a lien or charge, the debt secured by the lien or charge passes to any other person, the right to the lien or charge passes with it.

No deduction from workers' wages may be made for purposes of insurance against compensation for accident.

Liens to be imposed as security for miners' wages or earnings are dealt with under the Mining Act, 1926, and the Coal-mines Act, 1925.

Wages are further safeguarded by certain sections of the Bankruptcy Act, which give priority of payment for wages or salaries of workers (with certain limitations as to amount and period) in preference to certain other debts, and since the passing of the Bankruptcy Amendment Act, 1927, wages take precedence over rents. Similarly, under the Companies Act wages (with the same limitations as under the Bankruptcy Act) are a first claim on the assets of a company being wound up. Under the Workers' Compensation Amendment Act, 1936, compensation payments rank with wages as a first charge on the assets of a bankrupt.

Various individual labour laws contain provisions with the special intent of protecting the payment of wages of the workers to whom such legislation applies.

39 D—LABOUR DISPUTES LEGISLATION

LABOUR DISPUTES.—Trade-unionists were early protected by the Trade-unions Act of 1878 from prosecution for conspiracy by reason merely that the purposes of the trade-unions were in restraint of trade. They were further protected by the Conspiracy Law Amendment Act of 1894, which laid down that any act by a union in furtherance of a trade dispute should not be deemed unlawful so as to render such persons liable to criminal prosecution for conspiracy, if such act committed by one person would not be deemed unlawful. This removed a very serious handicap under which unionists up to that time had suffered.

Industrial Conciliation and Arbitration Act.—The original Industrial Conciliation and Arbitration Act was placed on the New Zealand statute-book in 1894. Its object was to encourage the formation of industrial unions and associations, and to facilitate the settlement of industrial disputes by conciliation and arbitration. It provided for the registration as “industrial unions” of societies of workers or employers in the various industrial districts, and as “industrial associations” of any council or other body representing any number of such unions; for the making of industrial agreements pursuant to the Act, and the filing of such in the Supreme Court; for the formation of industrial districts, the election of Boards of Conciliation, and the setting-up of a Court of Arbitration.

In 1898 an amendment was passed empowering the Court in its awards to prescribe minimum rates of wages, with special provision for a lower rate being paid in the case of workers unable to earn the prescribed minimum. An important amendment passed in 1903 prohibited any employer, worker, union of workers, or union of employers from taking proceedings to defeat any of the provisions of an award during its currency. It forbade an employer to dismiss any employee merely because he happened to be entitled to the benefit of an award or merely because he was a member of a union. Under the present law dismissal, or prejudicial alteration of position, of an employee who within the preceding twelve months had acted in any of certain specified capacities, or was entitled to or had claimed certain benefits, renders the employer liable to a penalty unless he proves that the dismissal or alteration of position was due to some other reason. An industrial union of workers may take action for a penalty in this connection.

In 1905 an amendment was passed providing for the punishment by fine of any worker or employer, bound by an award or industrial agreement affecting an industry, who takes part in a strike or lockout in that industry. In 1908 an additional penalty was added in the case of certain “public utility” industries, such as gas-manufacture, the supply of milk or meat, tramway services, &c. By this amendment the constitution of Conciliation Boards was altered to provide for the appointment of four Conciliation Commissioners, whose duty it is to call together representatives of employers and employees in the event of a dispute arising, and to sit with these representatives as a Conciliation Council to endeavour to effect a settlement. The decision of the Council is not binding, but disputes must be referred to a Council before they may be referred to the Arbitration Court.

A further amendment in 1911 empowered the Court to make an industrial agreement into an award, provided such agreement does not conflict with an existing award or is not contrary to the public interest. It also provided that recommendations of Conciliation Councils become in effect industrial agreements if none of the parties to a dispute disagrees with such recommendations.

Section 18 of the War Legislation and Statute Law Amendment Act, 1918, empowered the Court to amend during the term of an award or industrial agreement the provisions of the award or agreement, in so far as they related to rates of remuneration or hours of employment. In varying the conditions, the Court was to take into account the movement in the cost of living and any changes in the special conditions affecting the industry concerned. This measure, which was designed to meet the abnormal conditions caused by the war of 1914–18, remained in force till 1923.

The law as it existed in 1925 was consolidated in that year, previous consolidations having been effected in 1900, 1905, and 1908.

In 1927 a Bill was introduced into Parliament to exclude from the jurisdiction of the Arbitration Court the farming industry and certain associated industries. The Bill met with considerable opposition and was not proceeded with. An amending Act was, however, passed providing that no award relating to any agricultural, pastoral, or dairying operations, or to any other work effected on a farm, or to the manufacture or production of butter, cheese, or other milk products, should be made before 1st September, 1928. The provisions of the amendment of 1927 were re-enacted in 1928, another amendment extending for twelve months the period during which awards in the industries mentioned were not to be made, and also providing that no awards in these industries were to be altered or amended in the meantime without the consent of all parties concerned. The provisions referred to lapsed on 1st September, 1929.

A second amendment passed in 1928 permits of industrial agreements and (with the consent of the parties concerned) awards being made for or extended to a term of five years. This amendment also allows of an award or industrial agreement, in lieu of prescribing minimum rates of wages, prescribing a method or basis for calculating minimum rates.

As a result of depression conditions the Court was empowered by the Finance Act, 1931, to amend by general order awards or industrial agreements in respect of rates of wages, though power was given for the exclusion of any class or section of workers from the operation of a general order. In the next year compulsory arbitration was abolished; conciliation was still compulsory, but disputes could be referred to the Court only by mutual consent. Provision was also made for the review of existing awards.

The Industrial Conciliation and Arbitration Amendment Act, 1936, restored the full jurisdiction of the Arbitration Court, and also made several other amendments, the more important of which, as amended in later years, are summarized below:—

  • The Court is required to fix basic wages for adult male workers based on the needs of a man, wife, and three children, and also a basic wage for adult female workers. It must make general orders prescribing the basic wages, which will apply to workers in any industry to which any award or industrial agreement relates. (See previous subsection—Basic Wage, &c.)

  • Restrictions are imposed on the formation of new unions in districts where a union in respect of the same industry exists; in fact, no such new union may be registered unless with the concurrence of the Minister of Labour.

  • Provision is made for the registration of New Zealand unions covering all existing workers or employers, if all or the majority of district unions concur. In cases where no district union exists a New Zealand union may be formed, subject to compliance with the requirements of the principal Act in respect of registration of unions.

  • All workers who are subject to any award or industrial agreement registered under the Act must become members of a union. (This applied also in respect of awards or agreements in force at the time of the passing of the amending Act.) It is not lawful for an employer to employ or continue in employment, in any position or employment subject to an award or industrial agreement, any adult person who is not a member. (An amendment passed in 1943 provides that, where a person who is obliged to become a member of a union fails to do so, he is deemed to have committed a breach of the award or industrial agreement to which his employment is subject, and is liable to a penalty not exceeding £5 in respect of every such breach.) Non-members may, however, be employed in cases where union membership is limited and there are no union members available.

  • The Court may confer on union officials the right of entry on employers' premises.

  • Where it is deemed practicable the Court must fix the maximum hours of work per week (exclusive of overtime) at forty; while the Court could review existing awards to this end on application. The hours in such a review were to be fixed at forty, unless in the opinion of the Court such hours were impracticable. No reduction in weekly pay was to be made in consequence of reduced hours—i.e., the hourly rates were to be increased proportionately. The provisions stated in this paragraph came into operation on 1st September, 1936.

  • By the principal Act the maximum weekly union subscription had been fixed at 1s. This limitation was removed.

The 1947 amendment to the principal Act provides for the appointment of Deputy Judges of the Court of Arbitration. There is a section in the amendment dealing with the question of appeals to the Court from any decision of a Deputy Judge. The Finance Act, 1949, empowered the Minister in the case of a discontinuance of work by workers to cancel the registration of the worker's union concerned either in whole or in part, the award being automatically cancelled to the same extent.

The administration of the Industrial Conciliation and Arbitration Act is in the hands of the Labour and Employment Department, and Inspectors of Factories are charged with the duty of seeing that the provisions of awards and agreements are carried out. The following paragraphs indicate the procedure followed in regard to industrial disputes under the Act:—

  • An industrial union (or association of unions) of workers registered under the Act may cite a union or association of unions of employers, or an employer, or a number of employers, before a Council of Conciliation for the hearing of an industrial dispute before a Commissioner and assessors appointed from either side.

  • An industrial union (or association of unions) of employers registered under the Act, or an individual employer, or employers, may cite a union of workers in a similar manner. The workers may compel any of their employers to come under the Act; but the employers cannot compel their workers to come under it, unless the latter have registered as an industrial union or association thereunder; registration is voluntary.

  • If a settlement of a dispute is arrived at by the parties in the course of an inquiry held before a Council of Conciliation, the terms of the settlement are set forth as an industrial agreement. Applications for exemption from the terms of the agreement must be made within one month after it has been filed. The Court is empowered to grant or to refuse such applications. Where an agreement applies to the employers employing the majority of workers in the industry to which it relates, the agreement may be made binding on all employers, whether parties or not.

  • Every such agreement must be executed on behalf of the parties by the assessors representing the parties. If settlement cannot be arrived at before the Conciliation Council the matter is referred to the Court. The Council may at the same time submit a recommendation for the settlement of the dispute; whereupon the parties are notified of such recommendation, and if acceptable to them the recommendation is made an industrial agreement; failing agreement the matter is referred to the Court.

  • If a dispute comes before the Court, argument is heard upon the matters in debate, and the Court then makes its award, which becomes binding upon the employers specified in the award, upon any employers commencing business in the district subsequently to the date of the award, and upon all persons working for such employers. In all cases where an industrial agreement or accepted recommendation or award is filed, it becomes binding on all the parties. When an award or industrial agreement has been filed, a strike or lockout becomes unlawful. Section 21 of the Statutes Amendment Act, 1948, makes it mandatory for the Court to make the wages provisions retrospective to the date fixed for the first hearing of the Conciliation Council unless the Court considers that in the particular circumstances a later date should be fixed.

  • Section 35 of the Statutes Amendment Act, 1944, stipulates that no industrial dispute shall be referred for settlement to a Council of Conciliation by an industrial union (or association of unions) unless the proposed reference has been approved by resolution by the committee of management of the union or of each of the unions concerned, as the case may be.

  • The Statutes Amendment Act, 1946 (sections 34–37), stipulates that where an application has been made to a Conciliation Commissioner for the hearing of an industrial dispute by a Council of Conciliation, the claims made by the applicant may be amended or withdrawn at any time, whether before or during the hearing. Where any industrial dispute has been referred to the Court for settlement or any application has been made to the Court under the principal Act, the reference or application may be withdrawn by the applicants at any time, whether before or during the hearing.

An important amendment to the Act was passed during the 1939 session. This empowers the Minister of Labour, if he is satisfied that any discontinuance of employment brought about wholly or partly by any industrial union of employers or of workers has caused, or is likely to cause, serious loss or inconvenience, to cancel the registration of the union concerned or to cancel any award or industrial agreement so far as it relates to it. The 1947 amendment provides for the taking of a secret ballot by every industrial union of workers or of employers on questions relating to strikes and lockouts.

Section 22 of the Statutes Amendment Act, 1948, extends the time within which action may be commenced fur recovery of arrears of wages payable under an award or industrial agreement from twelve months to two years.

Reference has been made in an earlier stage of this section to the stabilization of wages, &c. In this connection the Economic Stabilization Emergency Regulations 1942 stipulated that no variation was to be made in the minimum rates of remuneration or the principal conditions of employment applying to any award, industrial agreement, or apprenticeship order except such adjustments of anomalies as the Court approves having regard to the general purpose of the regulations. In February, 1945, amending regulations were issued giving the Court power to amend existing awards and agreements so as to adjust disparities in wages-levels. These regulations were revoked by the Economic Stabilization Regulations 1950. For the present situation in regard to the powers of the Court under these regulations the reader is referred to the paragraphs on stabilization on pages 755–757.

Labour Disputes Investigation Act.—Machinery for dealing with all disputes to which the Industrial Conciliation and Arbitration Act does not relate is contained in the Labour Disputes Investigation Act, 1913.

Under this Act, if a dispute concerning wages or other conditions of employment arises between a society (or societies) of workers, whether registered or not, that is not bound by any award or industrial agreement, and its employers, the society must, before it may strike, give to the Minister of Labour formal notice of the dispute, setting forth the names of the parties to the dispute and the claims made by the society. The Minister then refers the dispute to a Conciliation Commissioner to call a conference, or to a “Labour Disputes Committee” for investigation and recommendation. Such a committee consists of from one to three members chosen from each side, with an independent chairman. In the event of no settlement being arrived at, a secret ballot is taken by the Registrar of Industrial Unions among the members of the society as to whether, in the case of no recommendation having been made, a strike should eventuate; or, in the case of a recommendation having been made, as to whether the recommendation should be adopted. Seven days' notice must be given to the employers should a strike be decided upon.

Similar provisions apply with reference to the filing of a dispute and to a lockout by the employers.

In the event of an agreement being arrived at it may be filed with the Clerk of Awards. It is then enforceable in the same manner as an industrial agreement under the Industrial Conciliation and Arbitration Act.

By this Act the principle of settlement of industrial disputes by conciliation and arbitration is extended to workers outside the scope of the Arbitration Court, so that definite restrictions on the right to strike or to lockout exist over the whole field of industry in New Zealand. The powers under this Act are not, of course, as far-reaching as those under the Industrial Conciliation and Arbitration Act, its main object being that workers or employers should take time for consideration of the points at issue and not precipitate themselves into industrial strife.

Strike and Lockout Emergency Regulations 1939.—Provision also exists under the Strike and Lockout Emergency Regulations 1939 and amendments for the setting-up of Emergency Disputes Committees or tribunals with the powers of Commissions of Inquiry under the 1908 Act. The Minister of Labour may by notice to the appropriate tribunal require that it decide any dispute which in the opinion of the Minister is likely to result in a strike or lock-out or has resulted in a strike or lockout. The fact of notice by the Minister shall be conclusive evidence that a dispute, as described above, had arisen.

If the dispute arises in an industry which is covered by an award of the Court of Arbitration or an industrial agreement in which provision exists for the setting-up of a disputes committee, this will become the appropriate tribunal. However, if the Minister considers it undesirable for any reason that the dispute should be referred to such a disputes committee, or if the committee reports that it has been unable to reach a final decision, then the Minister may refer the dispute to an Emergency Disputes Committee set up under these regulations.

The decision of the appropriate tribunal in respect of any dispute or of any matter connected with it will be final and binding on all parties directly concerned with the dispute. No such decision shall be questioned on the grounds that it is inconsistent with the provisions of an award or industrial agreement, notwithstanding anything to the contrary in section 151 of the Industrial Conciliation and Arbitration Act, 1925.

The regulations prescribe offences and penalties, the latter being enforceable in the same manner as if they were penalties under the Industrial Conciliation and Arbitration Act, 1925.

Industrial Relations Act, 1949.—This measure contained a section enabling a Conciliation Commissioner or a person nominated by the Minister to call a compulsory conference of parties where there is reason to believe that a matter not provided for in the award or industrial agreement governing the industry is causing or likely to cause industrial unrest.

39 E—APPRENTICESHIP AND TRADES CERTIFICATION LEGISLATION

APPRENTICESHIP LEGISLATION.—The statutory regulation of apprenticeship goes back as far as 1865, when a Masters and Apprentices Act was passed which provided for indentures of apprenticeship binding children above twelve years of age to farmers, tradesmen, and artisans for a term not exceeding five years. Every indenture was to contain a covenant on the part of the master that he would provide the apprentice with suitable food, clothing, and bedding, give particular attention to his morals, and pay certain sums into the savings-bank for him after his apprenticeship had exceeded two years. The Act was thus obviously framed with a view to providing for the welfare of orphans and destitute children.

Another Act was passed in 1875 which made provision for the apprenticing of boys to Government Departments for a term of not less than three nor more than seven years. The Departments made available in the first instance were the Government Printing Office and the Railway Workshops. Wages were to be paid, no provision was made for board, and the Act was clearly intended primarily to meet the case of boys whose parents were alive.

The Master and Apprentice Act of 1908 consolidated the above two Acts into an Act of two Parts, but made no essential change.

A Master and Apprentice Amendment Act was passed in 1920, with a view to facilitating the apprenticing of immigrant or New Zealand boys between the ages of fifteen and nineteen to the occupation of farming until they were twenty years of age. Part I of the principal Act of 1908 (dealing with the relations between master and apprentice) was to apply with some slight modifications.

Until 1923 no legislation was passed to make special provision for the apprentice who worked by the day for the private employer.* His case was regulated by the laws of England in so far as they were applicable to New Zealand, and by such provisions in regard to apprenticeship as the Arbitration Court might have included in its awards. The Apprentices Act of 1923 was a landmark, in so far as it provided an elaborate administrative machinery to safeguard the interests of apprentices.

The Act stated that from time to time the Arbitration Court should make orders regulating the wages, hours, and conditions of apprenticeship, the proportion of apprentices to journeymen that might be employed in any industry, the period of apprenticeship, and the minimum age of apprentices. It might also require employers to engage such number of apprentices as the Court might consider necessary to ensure an adequate supply of journeymen in the interests of the industry, order the transfer of an apprentice from one employer to another, order the attendance of any apprentice at a technical school or training establishment, prohibit any employer from employing an apprentice, enter the premises where an apprentice was employed in order to inquire into his welfare, and exercise a number of other powers. The Act applied to male apprentices only. Provision was made for the modification of apprenticeship conditions in the case of adults or of persons who were already partly trained. It also made provision for registration of every contract of apprenticeship and for the setting up of Apprenticeship Committees.

*The Shipping and Seamen Act of 1903 included some sections regulating the apprenticing of boys to ships.

The Secretary for Labour was to act as Registrar of Apprentices, and any Inspector of Factories might be appointed a District Registrar of Apprentices. Apart from registering contracts, these Registrars were to have the duty of ensuring that the Act was complied with, and they were to take proceedings for every breach of an apprenticeship contract. They were also given considerable scope for developing a system of vocational guidance, in so far as they were given powers to demand reports from the head teacher of any school as to the attainments and qualities of any child.

An amending Act of 1927 cancelled the power of the Court of Arbitration to determine the proportion of apprentices to journeymen that might be employed in any industry, while the amending Act of 1930 made some improvements in administration, dealt with the case of the unsatisfactory apprentice, and brought in further protective regulations. If an apprentice proved unsatisfactory, the employer might apply to the appropriate Apprenticeship Committee for the right to discharge him. The employer or the apprentice might appeal against this decision to a Stipendiary Magistrate. The interests of the apprentice were protected by regulations safeguarding his wages in the event of the employer's bankruptcy. The employer was to keep a wages and time book, and a copy of the apprenticeship order was to be affixed in a place where it might be easily read by the apprentice.

The economic depression had an unfavourable effect on the apprenticeship system. The Finance Act of 1931 conferred power on the Arbitration Court to vary the rates of remuneration payable under apprenticeship orders (though such a variation was not to apply to any contract of apprenticeship already in force). The Finance Act of 1932 stated that either party to an apprenticeship contract might apply to a Stipendiary Magistrate to have the contract of apprenticeship amended, cancelled, or suspended. If the Magistrate was satisfied that, owing to the economic conditions affecting the industry concerned or the particular business of the employer, the employer could not reasonably be expected to carry out the terms of his contract, he might cancel the contract.

The economic depression and its attendant legislation had thus considerably lessened the security and remuneration of the apprentice. The Finance Act of 1936 restored the rates of remuneration to the 1931 level and repealed the provision of the 1932 Finance Act in respect of the cancellation of apprenticeship contracts. Section 7 of the Statutes Amendment Act of the same year made partial provision for those whose contracts had been cancelled, in so far as it stated that any person of eighteen years or over might, with the approval of the Minister of Labour, enter into a special contract of apprenticeship with an employer.

The Second World War raised two new problems: that of the apprentice absent on military service for short periods, and the need for increasing production in certain industries, irrespective of whether they were carried on in private or public undertakings. Hence the Suspension of Apprenticeship Emergency Regulations, issued in 1939 and subsequently renewed, which provided that if apprentices were away on military service and returned within a period of six months, the period of absence should be regarded as time served under the apprenticeship contract. Section 52 of the Statutes Amendment Act of 1941 permitted the temporary transfer of an apprentice from Government to private employment and vice versa subject to the consent of the apprentice and his parent.

The Suspension of Apprenticeship Emergency Regulations 1944 revoked the previous suspension orders, and made provision for apprenticeships which were deemed to be suspended as a result of military service to be revived within a period of six months of the termination of such service. Where a contract of apprenticeship was revived in accordance with these regulations, the term of the contract was to continue for the unexpired period as at the date of suspension, or for three years, whichever was the lesser period. The apprentice could, however, be credited with any period of his military service during which he performed trade work of the same class, or of a class related to that to which he was apprenticed.

Other provisions dealt with the wages payable under these revived contracts, special reference being made to cases in which the apprentice had reached the age of twenty-one years or whose term of apprenticeship as prescribed by the contract had expired. Limitations contained in any Act, award, apprenticeship order, or agreement as to the age or number of apprentices, or the proportion of apprentices to journeymen, were deemed to have no application to such revived contracts. These regulations were revoked by the Military Training Act, 1949, which also made appropriate provision safeguarding the position of apprentices fulfilling their obligations under that Act.

The Apprentices Amendment Act, 1946, which came into force on 1st January, 1947, was the legislative consequence of the report of the Commission of Inquiry into apprenticeship and related matters set up in 1944. This Act made widespread changes in the traditional apprenticeship system of the country. In the first place it made provision for the appointment of a Commissioner of Apprenticeship and of four District Commissioners, who were to take over the functions of the District Registrars of Apprentices under the original Act. In industries where there are organizations of employers and workers, these organizations may agree to set up New Zealand Apprenticeship Committees, which may be registered in the usual way. These New Zealand Committees, which operate in addition to the existing “local” Committees, have a number of functions, which, broadly, may be described as to supervise the flow of youths into the skilled trades, to apply to the Court of Arbitration for apprenticeship orders, to ensure proper training of apprentices and to consider whether it is practicable and desirable to introduce educational training during normal working-hours, and to consider the question of a practical test for each apprentice before the completion of his apprenticeship. The Act provided that certain powers of the Court of Arbitration in respect of apprentices may be delegated by it, partly to local Committees and partly to New Zealand Committees. From the date of the commencement of the Act no apprenticeship orders may be made in respect only of a specified locality, but must be made in respect of each industry or branch of industry for the whole of New Zealand.

In making apprenticeship orders the Court of Arbitration is empowered to apply the conditions of awarded for the industry to apprentices, and to determine the wages of apprentices by reference to those of journeymen in the industry. By the Economic Stabilization Regulations 1950, the Court of Arbitration, in exercising its powers and functions in relation to the making of apprenticeship orders, is to have regard to the general purpose of the Economic Stabilization Act, 1948. The Court may, in an order, require an employer to pay to an apprentice wages for time taken during the day to attend a technical school, and may shorten the period of apprenticeship in the event of an apprentice obtaining a special qualification. On the making of a new order all contracts in force at the time are to be read subject to the new order and to be deemed modified by it. The hours of apprentices under eighteen years of age are limited to forty per week and eight per day, and, where shift-work is involved, between 7 a.m. and 6 p.m. These limits may be exceeded if an apprenticeship order provides for the working of overtime by apprentices under eighteen years of age. Regulations may be made providing for the payment to any apprentice who is obliged to live away from home of amounts by way of lodging-allowance. Such allowances are to he paid out of moneys appropriated by Parliament for the purpose.

The Court may also make apprenticeship orders in respect of females, and, in that event, the Act applies to such females.

An important provision contained in the amendment was that requiring the previous consent of the appropriate Committee before a contract of apprenticeship is entered into. The provision for apprenticeship of persons of eighteen years or over contained in section 7 of the Statutes Amendment Act, 1936, was repealed, and such apprenticeships may now be entered into subject to the approval of the Court of Arbitration, to which any proposed contract must be submitted, together with the recommendations of the District Commissioner or the local Committee. Where any employer is considered not to be able to provide adequate training, a local Committee or District Commissioner may transfer his apprentice to another employer who is willing and able to undertake the obligations of the original employer, notwithstanding that the second employer's proportion of apprentices to journeymen would thereby be exceeded. If in such a case no employer to whom the apprentice might be transferred can be found, the Court may, with the consent of the appropriate Minister, transfer him to a State Department.

In 1948 the opportunity was taken to re-enact the provisions of the Apprentices Act, 1923, and its amendments by the passing of a consolidating and amending measure entitled the Apprentices Act, 1948. This Act incorporated the widespread changes in the traditional apprenticeship system which were brought into being by the 1946 Amendment referred to earlier. More modern forms of words were employed in the new legislation, and the clauses were arranged in a more logical sequence. The principles of the existing legislation, however, were not altered although some slight amendments, which are described below, were made. The 1948 Act also repealed the Master and Apprentice Act, 1908, and the Apprentices Act, 1923.

In the 1948 legislation the term “industry” has been redefined so as to correspond with that given in the Industrial Conciliation and Arbitration Act, 1925.

A series of minor amendments covers the constitution of the Apprenticeship Committees. Where the Committee is appointed in respect of a group of industries it is to consist of four representatives of employers and four representatives of workers. Other clauses limit the term of office of members of Committees to three years, provide for a quorum and for the replacement of members who die or resign, and further authorizes a Committee to delegate its powers of inspection to two non-members of the Committee where it would be inconvenient for members to exercise those powers.

Additional provisions contained in the 1948 Act state that contracts of apprenticeship shall have no validity until consent is given in accordance with the Act; define procedure when an apprentice is transferred; amplify the law applicable when an apprentice loses his employment through the insolvency of his employer; afford a parent or guardian an opportunity of being heard when an application is made to discharge an apprentice; and provides for notice to be given to the appropriate Committee in the event of an appeal against the granting or refusal of leave to discharge an apprentice.

Moneys due under a contract of apprenticeship may be recovered in the same manner as that provided in respect of recovery of wages in the Industrial Conciliation and Arbitration Act, 1925. The Apprentices Act further provides that proceedings for breaches of the Act may be taken by an Inspector of Factories.

TRADES CERTIFICATION.—The Trades Certification Act, 1948, provided for the establishment of the New Zealand Trades Certification Board, consisting of the following members:—

  1. Three persons to be appointed on the recommendation of the Director of Education, one of the three to be appointed as Chairman of the Board on the Director's recommendation:

  2. Two persons to be nominated by the New Zealand Employers' Federation and two by the New Zealand Federation of Labour:

  3. Two persons to be nominated by the New Zealand Technical School Teachers' Association and one by the Technical Education Association:

  4. The person for the time being holding the office of Commissioner of Apprenticeship:

  5. Three other persons, one of whom is to be nominated by the New Zealand Electrical Wiremen's Registration Board, one by the New Zealand Motor Trade Certification Board, and one by the Plumbers' Board of New Zealand:

  6. Additional members of whom one shall be nominated by each other authority which conducts examinations and issues certificates for the whole of New Zealand in connection with a particular trade or trades, and which the Board recommends should be represented on the Board for the time being.

The members of the Board, other than the Commissioner of Apprenticeship, are to be appointed by the Minister of Education for a term of three years. Provision is made for reappointments, removals from office, &c.

The functions of the Board are to make provision for the examination of persons practising or intending to practise any trade who desire from time to time to present themselves for examination, and, secondly, to grant or issue, either independently or in conjunction with any other examining body, diplomas or certificates to any such persons in recognition of proficiency in any trade, or in any art, science, or matter relating to any trade.

The Board may also (a) co-opt if necessary any person or persons for advice in connection with any trade; (b) make representations to the appropriate New Zealand Apprenticeship Committee in regard to the pre-requisite education for apprentices wishing to enter any industry, or in regard to other educational matters affecting apprentices; appoint, with approval of the Minister, Advisory or Technical Committees to advise the Board on such matters within the scope of its powers and functions as are referred to them by the Board, and appoint any person to be a member of such a Committee even if he is not a member of the Board; and, in addition, charge fees for entry for any examination.

Payments incurred for the expenses of the Board and for administration generally are paid from the proceeds from fees and otherwise, and where the amounts from such sources are insufficient the deficiency is to be met from the annual vote for the Education Department

39 F—WORKERS' COMPENSATION, EMPLOYMENT AND UNEMPLOYMENT LEGISLATION

WORKERS' COMPENSATION.—Common-law rights of the worker in respect of compensation were early increased by the Employers Liability Act of 1882; while the Deaths by Accidents Compensation Act, 1908, gave a right of action which did not previously exist at common law to certain of the relatives of a person killed by a wrongful act. The 1950 amendment to this latter Act extended the limitation period for actions (other than those against the Crown and public and local authorities) from one year to two years and enables the Court to extend the period to six years.

The Law Reform Act of 1936 contained several provisions of particular relevance to the subject of workers' compensation. The Act, inter alia, created a charge on all insurance-moneys payable as indemnity for compensation, and made the charge apply immediately on the happening of the event giving rise to the claim. Similar provisions (now repealed) existed in the Workers' Compensation Act, 1922, but under that Act no charge was created unless the insured was insolvent or became bankrupt. The Workers' Compensation Amendment Act, 1943, made it obligatory on the part of an employer to insure against his liability under the principal Act unless he was able to satisfy the Compensation Court that he had adequate financial resources to meet all probable claims. Another provision of particular interest in the Law Reform Act, 1936, was the abolition of the defence of “common employment,” which defence depended on a rule that damages could not be recovered from an employer in respect of the negligence of a fellow-servant. A similar provision in the Workers' Compensation Act (but with a limit of £1,000 damages) was consequentially repealed.

The Contributory Negligence Act, 1947, is also of relevance to the question of workers' compensation. This Act provides for an apportionment of damages where a person suffering damage has himself been guilty of contributory negligence. Section 4 makes appropriate provisions in the case of claims by workers against employers. The Act was amended by section 4 of the Statutes Amendment Act, 1948, which removed any possible doubt by expressly stating that the principal Act was to bind the Crown.

The Workers' Compensation Act, 1922, with its amendments of 1922, 1926, 1936, 1938 (Statutes Amendment Act), 1943, 1944 (Statutes Amendment Act), 1945, 1947, 1948 (Statutes Amendment Act), 1949, and 1950, represents the existing law on workers' compensation—subject to the provisions briefly outlined in the preceding paragraphs. The 1936 amendment, which came into force on 1st January, 1937, contained several important amendments to the previous legislation. The definition of “worker” was extended to include share-farmers and drivers of vehicles who receive a share in the takings as payment for their services, or who pay a fixed sum for the hire of the vehicle (other than under the terms of a hire-purchase agreement). While a share-farmer now comes within the provisions of the Act, he is still regarded as the employer in respect of persons employed by him. The 1945 amendment further extended the scope of the Act to include industrial life-assurance agents.

The 1936 amendment contains a provision whereby claims for compensation rank equally with wages in the distribution of the assets of a bankrupt.

“Worker,” for purposes of the Workers' Compensation Act, means any person who has entered into, or works under, a contract of service or apprenticeship with an employer, whether by way of manual labour, clerical work, or otherwise, and whether remunerated by wages, salary, or otherwise. Prior to the commencement of the amending Act of 1945, non-manual workers whose remuneration exceeded £400 per annum were not covered, but this disqualification has now been removed, and all workers (manual and non-manual) are now afforded the protection of the Act, irrespective of the amount of remuneration. By section 61 of the Statutes Amendment Act, 1949, the Workers' Compensation Act, 1922, applies to the employment of any worker in any occupation, whether or not the employment is in or for the purposes of any trade or business carried on by the employer, and whether or not the employment is of a casual nature. For purposes of this provision, an employer may have more than one trade or business. In general, persons working as independent contractors are not under contracts of service or apprenticeship, and are consequently not “workers.” But by way of exception, persons who have contracted to perform any work in a gold-or coal-mine, or to cut standing timber or scrub, or to clear land of stumps or logs, and who do not sublet the contract or employ labour (or who, if they do employ labour, actually perform part of the work themselves), though not “workers,” are yet covered by the Act.

The worker is not entitled to compensation unless he sustains by accident arising out of and in the course of his employment, and happening within New Zealand or on a New Zealand ship or aircraft, personal injury incapacitating him from carrying on his occupation. The Workers' Compensation Amendment Act, 1947, replacing largely similar provisions in the 1943 amendment, provides that, where an accident causing personal injury occurs while travelling to or from work by a means of transport provided by the employer primarily for the purpose of conveying workers in his employment, or expressly or impliedly authorized by him, such accident shall be deemed to arise out of and in the course of the employment. The Act also applies in cases where an employer has arranged with the worker or appropriate union for the transportation of the worker and has paid or is liable to pay for his fare or cost of carriage. No compensation is payable in respect of any accident as above defined which is attributable to the serious and wilful misconduct of the worker injured, unless the injury results in death or serious and permanent disablement. No compensation is payable in respect of the death of a worker following on, or incapacity resulting from or aggravated by, unreasonable refusal to submit to medical or surgical treatment.

Diseases are deemed to be personal injuries by accident if they arise within twelve months previous to the date of disablement and are due to the nature of the employment. If the worker contracts any disease in respect of which he would be entitled to a miner's benefit under the Social Security Act, 1938, he is not entitled to receive any compensation under the principal Act while receiving such benefit. Nor can a benefit be paid for any period during which the worker is receiving compensation, and no lump-sum compensation is to be paid for any incapacity caused by such diseases.

Generally speaking, the employer is the person liable to pay compensation; and for this purpose “employer” includes any body of persons, corporate or unincorporate, the Crown (with certain minor exceptions), and the representatives of a deceased employer. Where a person (the principal), in the course of and for the purposes of his trade or business, contracts with another (the contractor) for the execution by the latter of work undertaken by the former, a workman employed by the contractor on meeting with an accident may claim compensation from either the principal or the contractor, except in certain cases. If the principal pays, he may, however (with certain minor exceptions), recover the amount from the contractor. The 1943 amendment introduced the principle of compulsory insurance, all employers being required to insure against their liability in relation to workers' compensation under the Act. Exceptions may be made where the Court is satisfied that the employers have adequate financial resources to meet all probable claims and that their workers can be given indemnities as great as those provided by employers not so exempted. The principal is not liable unless the accident occurs on or about his land, premises or ship; or on or about land, premises, or ship on or in which the principal has contracted to do the work in connection with which the accident happens. Provision was made in the 1947 amendment for the principal Act to apply to any accident which happens to an airman employed on a New Zealand aircraft in any employment covered by this Act, whether the accident happens in New Zealand or elsewhere, or on board the aircraft or elsewhere. Where the injury for which compensation is payable has resulted under circumstances creating a legal liability in some person other than the employer to pay damages in respect thereof, the person by whom the compensation is paid or payable is entitled to indemnification by the person so liable.

The Workers' Compensation Amendment Act, 1947, is also of importance by virtue of its provisions relating to employers' indemnity. Under section 6 of the amendment, workers' compensation insurance became, with certain exceptions, a monopoly of the Branch of the State Fire Insurance Office known as the Government Accident Insurance Office. By the Act an automatic indemnity was provided for every employer who employed a worker or workers to whom the principal Act applied, while it also provided for the compulsory payment of premiums by employers. Other sections included in the amendment relate to accident prevention and the occupational training of seriously disabled workers. The 1949 amendment exempted the National Airways Corporation and the Linen Flax Corporation from the provisions of employers' indemnity, while Commonwealth shipping companies belonging to mutual protecting clubs may also be exempted.

The 1950 amendment, however, restored the right of insurance companies to undertake, as from the 1st April, 1951, employer's liability insurance. It is still compulsory for every employer to insure against his liability in this respect unless exempted by the Secretary of Labour. Employers with adequate financial resources to carry their own insurance and Commonwealth shipping companies indemnified by United Kingdom mutual protecting clubs may be completely or partially exempted.

Maximum rates of premiums are provided for in regulations which may be made from time to time. Other sections provide that an employer must give notice to his insurer of every accident and claim for compensation; that the employer must not settle a claim or admit liability without the consent in writing of the insurer; for the voluntary insurance of workers who are members of the employers' family, or are not required to be covered by insurance, or are employed without wages or at reduced wages; and that an employer who makes default in insuring within the time provided (one month after assessment) will be indemnified by the Workers' Compensation Board, and be required to insure with an authorized insurer with payment of the premiums for the whole of the current year.

The Workers' Compensation Board, consisting of the State Fire Insurance General Manager and one other Government representative, two representatives of the Council of Fire and Accident Insurance Underwriters' Associations of New Zealand, one employers' representative, and one workers' representative, is also established by the 1950 amendment to the principal Act. The functions of the Board include recommending the maximum rates of premiums and rates of commission for insurance agents, administering the Workers' Compensation Account established by the same amendment, undertaking and assisting accident prevention, research into causes, incidence, and prevention of accidents, and the care and assistance of injured workers.

Employers are required to keep records of wages paid and time worked, while the production of books and the furnishing of information to insurers or to the Board is also allowed for in the Act.

The 1950 amendment also increased the maximum amount of weekly payments of compensation from £6 to £6 10s., and restored the limit of six years for weekly payments of compensation for loss of earning-power from non-schedule injuries. An injured worker receives additional compensation at the rate of 30s. a week for any period during which he requires constant personal attendance and is not being maintained free of charge in a hospital, such amount to be excluded when computing the maximum amount of compensation that may be paid in respect of the accident concerned.

The Workers' Compensation Amendment Acts of 1926, 1936, 1947, 1949, and 1950 amended the Act of 1922 in the direction of raising the limits of compensation. The compensation payable at present is as follows:—

  1. In case of death: Reasonable expenses of medical or surgical attendance including first aid, and of funeral (maximum, £50), plus—

    1. Where he leaves total dependants, a sum equal to 250 times his average weekly earnings, or the sum of £750, whichever is the larger, but not exceeding £1,750; or

    2. Where he leaves partial dependants only, a sum reasonable and proportionate to the injury to those dependants, but not exceeding the sums specified in (a).

    Where the amount of compensation payable in respect of death plus the sum of any weekly payments (or lump sum in lieu) paid by way of compensation for the accident prior to the death of the injured worker exceeds £2,000, the excess is deducted from the amount payable in respect of death.

  2. In case of injury: At the discretion of the Court, either—

    1. During total incapacity, weekly payments equal to 75 per cent. of the worker's weekly earnings at the time of the accident, notwithstanding that he may not have actually worked or the employment may not have actually continued for a full week (maximum £6 10s. per week; minimum £2); during partial incapacity, weekly payments for a period not exceeding six years amounting to 75 per cent. of the difference between the amount of the weekly earnings before the accident and the weekly amount which the worker is earning or able to earn in suitable employment or business after the accident, but not exceeding £6 10s. per week; or

    2. A lump sum equal to the present value at 3 per cent. per annum compound interest of the aggregate weekly payments which, in the opinion of the Court, would probably become payable to the worker under (a).

The aggregate amount of weekly payments is not to exceed £1,750. In the case of the temporary incapacity of an apprentice or a worker under twenty-one years of age, the weekly payment must not exceed an amount equal to a full week's earnings at the time of the accident. An injured worker is entitled to additional compensation of 30s. per week for any period during which he requires constant personal attendance and is not being maintained free of charge in a hospital. This additional compensation is not to be taken into account in the computation of the maximum amount of compensation payable in respect of the accident giving rise to the claim.

Weekly payments of compensation may not be discontinued or diminished except in the following cases:—

  1. Where the weekly payment is in respect of total disablement and the worker has actually returned to work:

  2. By agreement with the worker:

  3. With leave of the Compensation Court:

  4. By judgment or order of a Court of competent jurisdiction.

  5. After being in force for a period of six years.

If the employer wrongfully terminates or diminishes weekly compensation payments, he is liable to pay double compensation to the worker.

A sum not exceeding £1 is payable in respect of medical and surgical attendance and first aid to the worker in respect of his injury. In addition, amendments to the Act make provision for the transport of the injured worker to a hospital, medical practitioner, and/or place of residence, and also for the provision of or payment of expenses of transport, meals, or lodging up to a maximum of £25 where an injured worker is required to travel to and from another town in order to obtain necessary medical or surgical treatment. The 1947 amendment also states that the employer is liable to pay, in addition to any of the compensation moneys payable under the principal Act, the cost of an artificial limb, &c., which may become necessary or desirable. This was extended by the Statutes Amendment Act, 1949, to cover the cost of replacing or repairing damage to teeth, artificial dentures, &c., to a maximum value of £10.

No compensation is payable if incapacity lasts leas than three days. In the case of certain injuries involving permanent disability (e.g., dismemberment or loss of use), compensation is assessed according to a special scheme representing a proportion (varying according to the nature of the dismemberment) of the compensation payable in the case of total incapacity. Compensation is also recoverable in respect of a period of illness resulting from such an injury, but any sum so received in excess of £250 is taken into account in estimating the compensation payable in accordance with this scheme. In the case of injury to workers whoso earnings at the date of the accident are low by reason of their being at the time under twenty-one, or of their being apprenticed to a trade, &c., the amount of compensation in cases of permanent incapacity is based on the adult rates of pay. Section 69 of the Statutes Amendment Act, 1944, extended this provision to cover partly-trained workers over twenty-one years of age.

Proceedings under the Act in respect of compensation for injuries are not maintainable by a worker unless written notice of the accident has been given to the employer as soon as possible after its occurrence; though the Court has power to excuse failure, due to reasonable causes, to give that notice on the part of the person injured, or if it is clear that the absence of such notice has not prejudiced the employer's position. Except where the Court excuses delay resulting from mistake or other reasonable cause, proceedings must be taken within six months of the date of the accident or the date of the last payment of compensation in respect of injury, or the date of the death of the person injured, whichever is the later. Formerly such proceedings were taken in the Arbitration Court, but regulations issued on 1st March, 1940, under authority of section 70 of the Statutes Amendment Act, 1939, established a separate Court known as the Compensation Court for the hearing of workers' compensation cases. The new Court has all the powers inherent in a Court of record, and all references in the Workers' Compensation Act, 1922, or in the Workers' Compensation Rules 1939, to the Court of Arbitration are now deemed to be references to the Compensation Court. In certain cases proceedings are heard in a Magistrate's Court. The Court may accept, admit, and call for such evidence as in equity and in good conscience it thinks fit, irrespective of whether strictly legal evidence or not. Costs lie at the discretion of the Court. There is no right of appeal, but for good cause, orders or agreements in respect of compensation may be reviewed and even set aside by the Court at any time.

The right of a dependant who survives a worker to receive compensation for the death of that worker survives the dependant; and compensation can be recovered by the representative of that dependant. In addition to redefinition of the terms “total dependants” and “partial dependants,” the 1947 amendment provided that dependency is to be determined as at the date of death of the worker. Section 47 of the Statutes Amendment Act, 1948, states that in assessing compensation no account is to be taken of any gain to dependants consequent on the death of a worker. It thus applies to claims for compensation under the Workers' Compensation Act, 1922, the same provisions as apply by virtue of section 7 of the Law Reform Act, 1936, in cases of claims for damages under the Deaths by Accidents Compensation Act, 1908.

EMPLOYMENT AND UNEMPLOYMENT LEGISLATION.—Prier to the depression period of the early “thirties,” there was little permanent effective legislation to cope with the problem of unemployment. In 1895 a Servants Registry Act provided for the inspection of servants registry-offices and regulated the fees charged therein. The Labour Department was founded in 1891 and attempted, particularly through its Employment Bureaux, to cope with the problem. In 1928 a Committee was set up to examine this matter, which was becoming increasingly more serious; and, following on the presentation of its report, an Unemployment Act was placed on the statute-book during the 1930 session of Parliament.

An Unemployment Board was established to assist in the administration of the Act. The Board, as reconstituted in 1931, consisted of the Minister charged with the administration of the Act (Chairman), the Commissioner of Unemployment, and three members appointed by the Governor-General. The main functions of the Board as set out in the Act were: (1) To make arrangements with employers or prospective employers for the employment of unemployed persons; (2) to take such steps in accordance with the provisions of the Act as it considered necessary to promote the growth of primary and secondary industries in New Zealand, so that an increasing number of workers would be required for the efficient carrying-on of such industries; (3) to make recommendations for the payment of sustenance allowances out of the Unemployment Fund.

The Act of 1930 authorized the payment of sustenance allowances out of the Unemployment Fund, but the activities of the Board were directed towards the placing of men in employment in preference to the payment of sustenance, the funds being mainly devoted to the subsidizing (or refunding in full) of wages of men for whom work was provided under various relief schemes. A 1934 amendment to the Act, inter alia, repealed a subsection of the original Act, which, in effect, had limited to a maximum of thirteen weeks the unbroken period during which sustenance might be paid to any one individual.

The Immigration Restriction Amendment Act of 1931, which empowered the Governor-General to make regulations restricting the number of immigrants entering the country, aimed, inter alia, at preventing an unwanted inflow increasing the number of those unemployed. Its operation was extended in 1933 and 1935, and it expired on 31st December, 1936.

The Employment Promotion Act, 1936, replaced and repealed the Unemployment Act, 1930, and other legislation relating to unemployment. The Unemployment Board was abolished, the now Act being administered by the Department of Labour. An Employment Promotion Fund was established (deemed to be the same fund as the Unemployment Fund established under the Unemployment Act, 1930), the revenue of the Fund being derived from the employment tax, fees, and penalties under the Act, and any other moneys appropriated by Parliament for the purpose. The main purposes for which the moneys in the Fund were to be utilized were defined as follows:—

  1. The development of primary and secondary industries in New Zealand, and the establishment of new industries, so that an increasing number of workers would be required for the efficient carrying-on of such industries:

  2. The making of arrangements with employers or prospective employers for the employment of persons who were out of employment:

  3. The assistance, in accordance with the provisions of the Act, of persons who were out of employment or were otherwise in need of assistance.

By the Social Security Act, 1938, provision was made for unemployment benefits, superseding the former sustenance payments, to become available as from 1st April, 1939. The Employment Promotion Fund was abolished as from 30th September, 1939, and the moneys transferred to the Social Security Fund. The amounts of, and qualifications for, benefits will be found on pages 530–531 of this Year-Book.

Although the Employment Promotion Act was repealed by the Social Security Act, the functions of the Employment Division of the Labour Department continued to include the promotion of work and industry for the absorption of surplus labour, and the placing in close contact of employers with employees through the medium of the State Placement Service. The Employment Division was placed under the control of the National Service Department (a wartime creation) but the Employment Act, 1945, created out of the National Service Department a Department of State known as the National Employment Service, the principal function of which is broadly defined as the “promotion and maintenance of full employment at all times.” In 1947 the National Employment Service and the Department of Labour were amalgamated to form the Department of Labour and Employment. Further reference in regard to its activities is included in Section 40, Employment and Unemployment.

39 G—HOUSING AND TENANCY LEGISLATION

HOUSING LEGISLATION.—The first legal provision in connection with housing was contained in the Factories Act of 1894, which gave Inspectors of Factories power to inspect accommodation provided for shearers and to demand improvements where necessary. More effective powers in this connection were contained in the Shearers' Accommodation Act, 1898. The Agricultural Labourers' Accommodation Act of 1908 extended this legislation and provided for the inspection of housing of agricultural labourers and flax-mill workers. In 1912 the sawmill worker was also included. The Agricultural Workers Act, 1936, and regulations issued thereunder, laid down detailed specifications as to what constituted satisfactory accommodation and superseded the Act of 1908. Statutory regulations issued in 1937 prescribed further details, and stated that the regulations were to apply to the accommodation of persons employed in agricultural, pastoral, horticultural, flax-milling, and sawmilling work.

The Joint Family Homes Act, 1950, superseding the Family Homes Protection Act, 1895, which was consolidated as Part I of the Family Protection Act, 1908, makes it possible, on certain conditions, to establish a family home not exceeding £4,000 in value.

The 1950 Act aims at promoting a sense of dual ownership under which the family home will belong, not to the husband or wife separately, but to both of them jointly so as to pass to the survivor on the death of one of them. To encourage the adoption of the new scheme, provision is made that, provided the settler is solvent at the date of the settlement, the settled home shall be protected against the claims of creditors to the extent of £2,000, and shall to the same amount be exempt from death duties when it passes on the death of one of the beneficiaries to the survivor. The settled home is also protected from gift duty and stamp duty on the creation of the settlement.

The advances to settlers legislation of 1891 provided for State advances on mortgage to the owners of farming lands, and in 1899 this provision was extended to urban lands. Many of these advances would, no doubt, be used for building purposes, but no direct effort in the matter of providing housing-accommodation was made until 1905. In that year a Workers' Dwelling Act was passed authorizing the Minister of Labour to erect dwellings to be let to bona fide workers at a rental of 5 per cent. per annum of the capital value of such dwellings; and, in the following year, a system of advances to workers for the purpose of acquiring homes was instituted. By an amendment passed in 1922, workers could borrow for this purpose up to 95 per cent. of the value of their security. To cope with the post-war demobilization, the Housing Act of 1919 provided for the erection of dwellings not only by the State, but also by local authorities, employers, associations of public servants, and public-utility societies, the State advancing the money. The administration of this Act was later transferred to the State Advances Department, now the State Advances Corporation. Local authorities are also empowered to obtain special loans from the State Advances Corporation to erect workers' dwellings for letting, and are granted certain concessions in carrying out this activity by the Municipal Corporations Act, 1933. There is much incidental legislation, as in the Coal-mines Act and the Government Railways Act, where provision is made for the suitable housing of employees.

The 1948 and 1950 amendments to the Municipal Corporations Act, 1933, also contain, inter alia, provisions for granting loans for housing purposes up to a limit of £2,020 (see page 437).

Housing regulations are contained in the Municipal Corporations Act, where definite measurements are laid down to prevent overcrowding, and provision is made for the appointment of Inspectors to reduce fire-risk and other dangers. Similarly the Health Act of 1920, which replaced the Public Health Act of 1908, provides for medical inspection and for sanitation minima; an owner may be ordered to cleanse or demolish his building, or to close it till certain alterations are made. The Town Planning Acts of 1929 and 1929 aimed to develop and reconstruct areas in such a way as to promote their healthfulness and convenience.

In 1935, as a preliminary to measures for remedying the existing position in regard to housing, a Housing Survey Act was passed, instructing local authorities to ascertain as far as possible the extent to which the existing housing accommodation in their respective districts fell short of reasonable requirements. At the same time a Maori Housing Act empowered the Board of Maori Affairs to make advances to Maoris for the purchase, erection, or repair of dwellings, A section of the Maori Housing Amendment Act, 1938, established a special fund to provide houses for those Maoris unable to furnish the security or to make the payments which the Board would ordinarily require. In addition to the provision of housing under the Maori Housing Act, dwellings for Maoris are provided in the ordinary course of the Maori land development schemes. Particulars of the numbers of houses erected, &c., are included in Section 17C.

Further provision with respect to the improvement of housing conditions is contained in the Housing Improvement Act, 1945. The Act authorizes the making of regulations prescribing the standard of fitness of houses, and gives local authorities certain powers of enforcing the regulations or of assisting owners to comply with them. In default by the local authority the Minister of Works is given power to act, or he may act under agreement with the local authority. Provision is also made for regulations requiring local authorities to keep a register of houses and to acquire land where a house is unfit for habitation or an area is below the minimum standard. The Act also deals with the reclamation of overcrowded areas, and gives power to local authorities with respect to the proclamation of reclamation areas and the re-subdivision and improvement of such areas.

The provision of housing facilities for workers has been and is a very important part of the policy of the Government. Apart from the facilities for the building of homes provided for in the State Advances Corporation Act (sec Section 25D), a comprehensive housing plan was launched in March, 1937, whereby the legislative machinery provided in the Housing Act, 1919, is being used to build homes to be let to workers at a reasonable rental. Provision is contained in the Finance Act (No. 3), 1943, for the tenant of a State rental house to make arrangements whereby, in consideration of special payments, he becomes entitled to remain the occupier of the dwelling rent free or at a reduced rental on attaining a specified age. The arrangement may also permit his widow to become the occupier on the same terms, or entitle him to nominate any of his children to become the tenant after his death. Tenants of State rental houses are also being given the opportunity to buy the houses they occupy, and the legislative provision in this connection is contained in sections 22–27 of the Finance Act, 1950. Subject to any direction of the Minister of Finance, such houses may be sold for cash or under agreement for sale in such maimer and on such terms as the Board of Management of the State Advances Corporation may decide. Particulars of the main terms of sale are given on page 518 of this volume. An account of the housing programme under the Housing Act, and its progress to date, is included in Section 23, Building, Construction, and Housing. Further provision of housing facilities in rural localities is contained in the Rural Housing Act, 1939, which empowers local authorities to advance money to a farmer to enable him to provide a dwelling for his own use or for the use of any farm worker principally employed by him.

The Local Authorities (Temporary Housing) Emergency Regulations 1944 give power to local authorities to establish transit housing centres for the purpose of providing temporary accommodation for persons who are awaiting the provision of permanent housing accommodation.

TENANCY AND RENTS LEGISLATION.—Certain sections of the War Legislation Amendment Act of 1916 dealt with house-rents, the maximum rent being fixed at 8 per cent. per annum of the capital value of the dwelling. Material alterations in the law were made by the Rent Restriction Act, 1926. Rent-restriction provisions were kept in force by annual continuing statutes up to 31st October, 1936, when the earlier legislation was superseded by the Fair Rents Act, 1936.

The Distress and Replevin Amendment Act, 1950, repealing the 1936 amendment, protects all personal and family clothing, furniture, household effects, and tools or implements of trade, to the value of £100 from seizure under a distress order for rent. The pre-existing legislation on this subject did not protect such effects from seizure.

Provisions for statutory reductions in rent and interest payments were contained in the National Expenditure Adjustment Act of 1932, continued by the Finance Act, 1934, and made permanent in 1936; while Courts were given power to reduce rents and mortgage interest by the mortgage-relief legislation of the depression period, consolidated in the Mortgagors and Tenants Relief Act, 1932. The Fair Rents Act, 1936, replacing various measures referred to above, is briefly described in the following paragraphs.

The Fair Rents Act, 1936, made temporary provision for the restriction of increases in the rent of certain classes of dwellinghouses, and for the determination of fair rents in respect of such houses. The Act applied, generally speaking, to dwellings actually let at the time the Act was passed (June, 1936) or let at any time between 27th November, 1935, and the date of the passing of the Act. It did not apply to other dwellings or to any dwelling let at a rent exceeding £156 per annum. The rent of a dwelling coming within the scope of the Act could not be raised beyond the “basic rent” which was defined as the rent payable on 1st May, 1936; or, in the case of dwellings not let on that date, the rent last payable before that date. On application of either the landlord or the tenant, a Stipendiary Magistrate was empowered to declare a fair rent in respect of any dwelling to which the Act applied, having regard to various specified conditions—e.g., the relative circumstances of landlord and tenant. The fair rent was not to exceed the basic rent or the rent (if any) payable on 27th November, 1935. The grounds for the recovery of possession were limited by the Act, while restrictions were imposed on the right of the landlord to distrain. The Act was to remain in force until 30th September, 1937, but its operation was extended from time to time, and in fact its provisions remained in force until superseded by those of the Tenancy Act, 1948.

The 1936 Act did not apply to flats and apartment-houses, but an amendment passed in 1939 extended its provisions to cover buildings constructed for letting as more than two separate flats or apartments, all flats or apartments not originally constructed for letting separately, and flats and apartments where parts of premises were shared. The 1939 amendment also made provision for the making of regulations for the purpose of regulating charges in respect of residential accommodation with attendance or services.

The Fair Rents Amendment Act, 1942, extended the application of the principal Act to all premises let as dwellinghouses, including those where part only was used as such. The “basic rent” was now defined as follows:—

  1. With reference to a dwellinghouse let as such on 1st September, 1942, the rent payable on that date:

  2. With reference to a dwellinghouse that was not lot on that date, the rent that was last payable.

The Act made it an offence to refuse to let a dwelling on the grounds that the applicant had children. It also provided certain safeguards in respect of members of the Armed Forces in their capacity as tenants or landlords.

The application of the Fair Rents Act was further extended by section 27 of the Statutes Amendment Act, 1946, to include premises occupied for residential purposes by two or more persons severally. In such cases the total of the several amounts payable was deemed to be the rent of the premises. Section 28 of the same Act also extended the provision of the Fair Rents Act to cover premises where meals or food were provided by the landlord, unless the value of the meals or food formed a substantial portion of the rent.

As previously stated, the Fair Rents Act applied only to premises let as dwelling-houses, but the Economic Stabilization Emergency Regulations 1942 provided for the stabilization of all other rents, whether on account of land or buildings. The basic rent under these regulations had the same meaning as in the case of the Fair Rents Act, and rents that might be charged were restricted accordingly. On the application of the landlord or tenant of any property the Court might make an order determining the fair rent of that property.

The basic rent or fair rent (if any) of any land established under the Fair Rents Act or the Economic Stabilization Emergency Regulations was taken into account in determining the basic rent of such land for the purposes of the Servicemen's Settlement and Land Sales Act, 1943.

The Fair Rents Amendment Act, 1947, included the following provisions. The basic rent for a dwellinghouse was not to be affected by variations in tenancies as to furniture, &c., or by subletting; tenancy registers were to be kept by the landlord; no fine or premium was to be chargeable for tenancy or renewal or transfer, while provision was made for recovery of possession of a dwellinghouse for a serviceman who vacated it to become a serviceman, and the absolute protection of a serviceman tenant was also modified.

A further part of the 1947 amendment was concerned with the letting of unoccupied houses. It empowered local authorities to serve notice to the owners requiring them to lot such houses. Conditions were laid down governing appeals against notices given by local authorities to the above effect. On default of action by the owner, the house could be let by the State Advances Corporation, the rent received to be paid to the owner, less commission and expenses. Power was given to enter and inspect any premises for the purposes of this portion of the Act to any person so authorized by any local authority.

The Tenancy Act, 1948, repealed the considerable body of the Fair Rents legislation passed during the period 1936–47. In effect, however, it consolidated the former legislation, including Part III of the Economic Stabilization Emergency Regulations 1942, while at the same time it introduced several important amendments. The main alterations to the existing law together with amendments contained in the Tenancy Amendment Act, 1950, are referred to below.

The provisions as to rent restriction of tenancies (inclusive of subtenancies) relates to dwellinghouses and to all leased properties, whether urban or agricultural, except that the definition of the term “property” has been amended so as to exclude agricultural properties leased for not less than two years and so subject to Part III of the Servicemen's Settlement and Land Sales Act, 1943, or, since the latter's repeal, to the Servicemen's Settlement Act, 1950, and to exclude licensed hotels and camp sites (let for periods not exceeding six weeks). The definition of the term “rent” has also been extended to include money's worth. Two machinery changes involved were the appointment of Rents Officers to exercise the functions of Inspectors of Factories under the Fair Rents Act, 1936, and authorized persons under the revoked regulations, and defining the Court for fixing the fair rent as the Magistrate's Court, with a right of appeal to the Supreme Court where the basic rent or fair rent exceeds an annual rent of £520.

A new section has the effect of extending to all properties the earlier provision which prevented the original basic rent from being affected by including furniture in the tenancy. The provision for restoring the original basic rent and deeming any existing higher rent to be a fair rent was extended to cover properties other than dwellinghouses. As far as a “fair rent” is concerned, the Court can now fix the fair rent payable by the landlord where he is himself a tenant. Provision is also made for the method of determining the fair rents of flats and apartments. Instead of ceasing to have effect at the end of one year or when a now tenant occupies the premises as tinder the previous legislation, a fair rent fixed for a dwellinghouse now continues in force until a subsequent order takes effect.

A section relating to fines, premiums, &c., prohibits a landlord or outgoing tenant from receiving from a new tenant any consideration other than—

  1. The rent:

  2. The price of any chattels not exceeding the fair selling value, or the replacement cost of stock in trade.

The restrictions on payments for goodwill on the transfer of a tenancy were abolished by the 1950 amendment, which renders it unnecessary to have any such payment approved by the Land Valuation Court.

The time within which excess payments of rents may be recovered from the landlord by the tenant or deducted from current rent is extended from six months to twelve months.

Exemption from the restrictions on recovery of possession from a tenant is provided for by the 1950 amendment where, in the case of the letting of any dwelling-house or urban property, the landlord and the tenant by agreement in writing dated not earlier than 1st March, 1950, and incorporating the terms and conditions of the tenancy, have, agreed that Part III and sections 41, 42, and 43 of the Tenancy Act shall not apply. The agreement has to be approved in writing by a Rents Officer, and a copy of the agreement deposited with the latter before the date of commencement of the tenancy. In the following cases also those provisions containing the restrictions on recovery of possession cease to apply—namely, a dwellinghouse let to a worker by his employer; a dwellinghouse or urban property let on behalf of a mental patient; where a tenant has sublet the whole of the dwellinghouse, provided that the subletting is not due to the temporary absence of the tenant for not more than a year: and to a tenancy of any urban property transferred either directly or by subtenancies, after the expiration of six months from the date of the transfer of the tenancy or twelve months from the commencement of this section of the Act (whichever period is the later to expire), unless the landlord consents or the Court orders that those provisions shall continue.

Important alterations were made by the Tenancy Act, 1948, and its 1950 amendment to the list of grounds governing the issue of orders for recovery of possession or to the exclusion under certain conditions of tenancies from those provisions restricting recovery of possession. The Act provides for recovery without having to provide alternative accommodation or prove greater hardship in the following cases: (a) where the dwellinghouse is not reasonably required for occupation as such by the tenant. (b) where an age-beneficiary has owned the dwellinghouse for two years, (c) where any other landlord has been the landlord of the dwellinghouse for five years, reduced to three years by the 1950 amendment, (d) where a landlord aged sixty years or over (or fifty-five years in the case of a woman) has owned a dwellinghouse for not less than three years and has given six months' notice, if the landlord did not, on 1st August. 1950, have adequate and suitable living accommodation in premises owned by him, (e) where a landlord of an urban property, after owning premises for at least two years, has given one year's notice that he reasonably requires the premises for his own occupation. However, the relative hardship of landlord and tenant will still be taken into account except for item (d). Other conditions give the landlord a right to apply for an order for the recovery of excess land for building purposes, or for an order authorizing him to convert a dwellinghouse into flats, one to be let to the existing tenant with appropriate adjustment of rent payable; give a right to apply for recovery of possession where a landlord is a trustee wanting possession of a dwellinghouse for occupation by a beneficiary under the trust; provide that where an application to the Court to recover possession on the grounds of a nuisance or annoyance on the part of a tenant has not been successful, the Court may order the cessation of restrictions after six months, unless the landlord's conduct has contributed to the circumstances complained of and allowing for revocation of the order within five months on the grounds that the circumstances have been improved; extend from six months to two years the period of the restriction on the letting or sale of premises when possession is recovered for the landlord's own occupation; and also make it an offence for a landlord to evict a tenant without an order of a Court or the tenant's consent.

The 1950 amendment includes a provision that where a landlord offers alternative accommodation, such is deemed to be suitable, unless the Court is satisfied that it is inadequate for the needs of the tenant, or is of unreasonably low standard, or is for any special reason unsuitable for the tenant.

Some new miscellaneous provisions were also incorporated in the Tenancy Act, 1948. Included in this category are the extension of protection of tenancy in case of death to members of the deceased's family; the preservation of a tenancy for the wife or husband of the tenant in cases of separation or desertion; the prescription of conditions implied in tenancies; requiring receipts to be given for rent payments; making it an offence for a landlord to deprive a tenant of his amenities, as by cutting off electric power, gas, or water; and deal with the case of unauthorized occupiers.

Chapter 40. SECTION 40—EMPLOYMENT AND UNEMPLOYMENT

PRIOR to the establishment in 1946 of the National Employment Service the only comprehensive source of information on employment in New Zealand was the periodical census inquiry. After each census a volume containing statistics of industries and occupations is published, and in respect of those of 1926 and 1936 there was an additional volume on unemployment. Certain specific fields—factories, public works, and local authorities, were, however, also covered by annual collections. The activities of the National Employment Service and the scope of the knowledge of employment matters at present available are dealt with in detail on later pages of this section.

STATISTICS OF 1945 CENSUS.—The tables presented herewith continue the series of 1945 census results to which reference has been made on page 41. The corresponding figures from the 1936 census are also shown for purposes of comparison.

Industrial Distribution.—The following tables illustrate (a) the extent to which the European population directly participated in economic life, (b) the distribution of the actively engaged sector both by major divisions and the more general categories of industry, and (c) the character of participation, whether as employer, wage-earner, &c.

Data for Maoris according to occupational groups, will be found on page 781.

INDUSTRIAL DISTRIBUTION: MAJOR DIVISIONS

Major Division.1936 Census.1943 Census.
Males.Females.Total.Males.Females.Total.

* Including Service personnel and administrative staffs in New Zealand.

Numbers
Primary production168,5986,515175,113124,10810,999135,107
Industrial129,56727,751157,318138,89239,895178,787
Transport and communication59,9182,27962,19760,2978,96469,261
Commerce and finance77,72924,673102,40261,44136,01297,453
Public administration and professional*34,83127,06261,89374,83044,587119,417
Domestic and personal service12,26344,48256,74510,14522,06032,205
Not specified22,6156,16528,7802,6325223,154
  Totals—      
    Actively engaged505,521138,927644,448472,345163,039635,384
    Not actively engaged250,705596,331847,036310,257657,913968,170
  Grand Totals756,226735,2581,491,484782,602820,9521,603,554
Proportions per Cent. of Persons Actively Engaged
Primary production33.354.6927.1726.276.7421.26
Industrial25.6319.9824.4129.4024.4728.14
Transport and communication11.851.649.6512.775.5010.90
Commerce and finance15.3817.7615.8913.0122.0915.34
Public administration and professional*6.8919.489.6015.8427.3518.79
Domestic and personal service2.4332.028.812.1513.535.07
Not specified4.474.434.470.560.320.50
  Totals, actively engaged100.00100.00100.00100.00100.00100.00

The table above affords evidence of the sweeping changes induced in the industrial structure of a country while at war, these changes being superimposed on normal variations in divisional distribution originating principally through technical and industrial development and also on those due to the ageing of the population.

The direct impact of war conditions may be gauged from the following statements. The absence of 43,415 males and 666 females serving overseas at census date impinges on all group totals (although in varying proportions). Furthermore, Service personnel and administrative staffs in New Zealand were approximately 46,000 (41,000 male and 5,000 female) in excess of those recorded in the 1936 census. These figures inflate the public administration group at the expense of the remaining groups.

The most striking features occurring during the inter-censal period are the reduced male employment in primary production, compensated in a small measure by additional female labour; increased female participation generally in industrial activities; diversion of labour from domestic and personal services to other industrial pursuits; and finally the marked increase in the public administration and professional groups (which includes Service personnel and administrative staffs in New-Zealand).

The decline in the numbers shown for the “Not specified” group is very largely due to statistical refinements principally in the form of an extra question on the census schedule enabling the “industry” to be ascertained for numbers of people not otherwise classifiable.

Despite the employment of a considerable number of older persons and younger women, continuing on or entering active employment, the proportion of persons not actively engaged increased from 56.79 per cent. in 1936 to 60.38 in 1945. This increase is largely due to the gradually rising number of people in the older age groups and the greater number of births in the later war years.

The table now presented gives a more detailed classification by industry groups:—

INDUSTRIAL DISTRIBUTION: INDUSTRY GROUPS

Industry Group.1936 Census.1945 Census.
Males.Females.Total.Males.Females.Total.
Agricultural and pastoral144,4566,357150,813107,78710,754118,541
Forestry10,2488310,3316,0651226,187
Fishing and trapping2,535112,5462,656212,677
Mining and quarrying11,3596411,4237,6001027,702
Manufacturing industries—      
  Food22,3333,28525,61820,9935,36326,356
  Drink1,6741251,7992,3772582,635
  Tobacco2804887683897751,164
  Chemical industries, vegetable or animal products, n.e.i.4,9415195,4604,7651,6766,441
  Rubber254112651,1443711,515
  Wood, cane, basketware, furniture, and fittings5,6684186,08610,37081611,186
  Paper, stationery, books, &c.8,0902,35110,4416,7213,38210,103
  Skin, hide, and leather1,5344321,9661,7737632,536
  Textiles2,6802,3615,0413,9614,1168,077
  Wearing-apparel (including repair)7,11616,01123,1276,70417,18223,886
  Production and supply of electricity, gas, and heat; water-supply5,2932785,5716,0335116,544
  Non-metallic minerals, n.e.i.2,988733,0615,2103925,602
  Machinery, Including all electrical appliances, and means of transport by land, water, and air19,19176819,95925,1572,77027,927
  Instruments, clocks and watches, jewellery819378561,0391561,195
  Other6832329157004271,127
Building and construction—      
  Buildings27,61224527,85728,64965129,300
  Roads, railways, earthworks, &c.18,41111718,52812,90728613,193
Transport and communication—      
  Rail transport37,16984438,01322,9802,07325,053
  Road transport   15,9781,26917,247
  Water transport13,90831914,22713,12745513,582
  Air transport127513228349332
  Communication8,7141,1119,8257,9295,11813,047
Commerce and finance—      
  Wholesale and retail trade62,04921,04683,09547,45428,03275,486
  Finance, banks, insurance11,4272,34413,77110,3455,54915,894
  Agencies for other purposes, n.e.i.4,2531,2835,5363,6422,4316,073
  Hotel and personal services12,26344,48266,74510,14522,06032,205
  Entertainment, sport, and recreation4,5271,0305,5573,7671,1004,867
  Public services and other services of general interest, n.e.i.—      
  Medical and hygienic services4,84611,07515,9216,88318,20225,085
  Education, religion, arts, and sciences, n.e.i.10,27612,09922,3759,40413,71423,118
  Defence1,681191,70042,6225,19647,818
  Public administration8,6641,1209,7847,6043,71411,318
  Law and order4,5561,5896,1453,9332,0415,974
  Other2811304116176201,237
Not specified22,6156,16528,7802,6325223,154
    Totals—      
      Actively engaged505,521138,927644,448472,345163,039635,384
      Not actively engaged250,705596,331847,036310,257657,913968,170
    Grand totals756,226735,2581,491,484782,602820,9521,603,554

Occupational Status.—The following table gives particulars of the character of participation in industry, whether as employer, wage-earner, &c., together with the main classes of those not actively engaged in industry.

Occupational Status.1936 Census.1945 Census.
Males.Females.Total.Males.Females.Total.
Numbers
Employer53,5365,00458,54047,5244,99752,521
Own account64,0699,62773,69654,9616,27261,233
Wage or salary earner—      
Armed Forces (Regular or Permanent Staff)1,464 1,4642,545 2,545
Armed Forces (other)   38,0424,05442,096
All other wage or salary earners336,853120,610457,463319,344144,882464,226
Unemployed (includes ex-servicemen not yet returned to work)35,7741,86237,6365,8231,0906,913
Relative assisting, unpaid10,92889211,8203,9701,6945,664
Invalid or sick, or under detention, &c. (fifteen or over)   22,10617,21439,320
Child under fifteen years   210,348202,724413,072
Student, full-time (fifteen or over), unpaid251,593596,674848,26718,95516,11735,072
Domestic duties   734383,202383,936
Retired, independent means, &c.   58,11438,65696,770
Not specified2,0095892,59813650186
    Totals756,226735,2581,491,484782,602820,9521,603,554
Proportions per Cent.
Employer7.080.683.936.070.613.28
Own account8.471.314.947.020.763.82
Wage or salary earner—      
  Armed Forces (Regular or Permanent Staff)0.19 0.100.33 0.16
  Armed Forces (other)   4.860.492.63
  All other wage or salary earners44.5416.4030.6740.8117.6528.95
Unemployed (includes ex-servicemen not yet returned to work)4.730.252.520.740.130.43
Relative assisting, unpaid1.450.120.790.510.210.35
Invalid or sick, or under detention, &c. (fifteen or over)   2.822.102.45
Child under fifteen years33.2781.1656.88   
Student, full-time (fifteen or over), unpaid26.8824.6925.76
 2.421.962.19
Domestic duties0.0946.6823.94
Retired, independent means, &c.7.434.716.03
Not specified0.270.080.170.020.010.01
    Totals100.00100.00100.00100.00100.00100.00

The influence of war conditions is again apparent. Employers, persons on own account, and wage or salary earners exhibit in common a relative decline since 1936. In the later war period men in the older age-groups were being inducted into the services, which probably entailed in particular some reduction in numbers of the first two classes quoted, while the diversion of labour and material resources inevitable in a war economy doubtless reinforced this tendency. Reference has been made in connection with the previous tables to the extent to which the armed services, both within New Zealand and overseas, had depleted the civilian labour force.

The effect of an ageing population is shown by the larger proportion of males not actively engaged in industry—namely, 39.64 per cent. in 1945, against 33.27 per cent. in 1936. This trend is masked in the case of females by the entry into the industrial sphere of many who would not, in more normal times of the past, choose to participate. In fact, the proportion of females not actively engaged decreased from 81.16 per cent. in 1936 to 80.14 per cent. in 1945.

Occupations of Maoris.—The Maori schedule provided for the personal occupation to be stated, but omitted questions on industry and occupational status which were included on the European schedule. In many instances occupations were returned as labourer without any indication of the type of work performed, and all such cases are shown in the other or ill-defined occupation-group. It seems probable, however, that the majority of these were farm labourers and labourers on building and construction.

Occupational-group.1936 Census.1945 Census.
Males.Females.Males.Females.
Fishermen and trappers120181311
Agricultural and pastoral occupations8,4771,5318,062993
Forest occupations9845780747
Miners and quarrymen125 3472
Workers in stone, clay, earthenware, lime, cement, glass, &c.13 21713
Workers in processes relating to chemicals, animal and vegetable products, n.e.i.20114214
Workers in non-precious metals, electric fittings, &c.88 31548
Workers in precious metals, jewellery, scientific instruments, &c.2 2 
Workers on ships, boats, and conveyances8 161
Workers in fibrous materials, textiles, &c., other than clothing or dress43147751
Workers in clothing and dress, &c.132750160
Workers in harness, saddlery, and leatherware (excluding boots and shoes)2 94
Workers in food, drink, and tobacco30421898129
Workers in wood, n.e.i.2681357725
Workers in paper, printers, photographers, &c.316919
Workers in other materials322415
Workers in building and construction, and in maintenance of roads, &c., n.e.i.1,259 1,8668
Workers in production or supply of gas, water, electricity or power13 103 
Workers in transport and communication47581,33450
Financial and commercial occupations10026177130
Public administration11 520116
Clerical and professional occupations387197348574
Occupations connected with entertainment, sport, and recreation4725669
Personal and domestic occupations, hotelkeeping, &c.517921151,660
Other or ill-defined occupations—    
  Labourer, n.o.d.8,4802755,92466
  Other occupations145 26174
  Not specified4992767515
    Totals actively engaged21,9403,03523,1324,224
    Totals not actively engaged20,92336,42827,14344,245
    Grand total, Maori population42,86339,46350,27548,469

POST-WAR DISTRIBUTION OF LABOUR FORCE.—More recent information is available for the years 1947–50 from the estimates of the National Employment Service showing the effects of the demobilization of Armed Forces personnel and of post-war developments on the industrial distribution of the labour force of the country. The table which follows shows the estimated distribution of the labour force, European and Maori, by broad industrial groups in April of each year from 1947 to 1950.

Industrial Group.Males.Females.Total.
1947.1948.1949.1950.1947.1948.1949.1950.1947.1948.1949.1950.
Thousands
Primary industry156.4156.0155.2154.913.313.313.313.3169.7169.3168.5168.2
Secondary industry175.5180.7183.8188.842.443.243.545.4217.9223.9227.3234.2
Transport and communication61.262.664.965.76.26.77.07.267.469.371.972.9
Distribution and finance73.275.376.077.436.737.337.838.8109.91126113.8116.2
Public administration and professional45.746.347.447.842.543.143.744.888.289.491.192.6
Domestic and personal services15.515.916.316.426.026.326.726.541.542.243.042.9
      Totals527.5536.8543.6551.0167.1169.9172.0176.0694.6706.7715.6727.0
Armed forces12.67.87.18.20.50.40.50.713.18.27.68.9
Unemployed  0.1       0.1 
      Totals, labour force540.1544.6550.8559.2167.6170.3172.5176.7707.7714.9723.3735.9

UNEMPLOYMENT.—Except for occasional returns relating to State unemployment relief which were presented to Parliament from time to time, practically no direct statistical evidence as to the extent of unemployment in New Zealand prior to 1892 is available.

Unemployment was well known to have been acute in the middle and late “sixties,” owing to the paralysing effect of the Maori wars in the North Island and to the collapse of the alluvial-gold booms in Otago and Westland. With the inauguration, at the beginning of the “seventies,” of the Vogel policy of public works and assisted immigration, employment was available for large numbers of new arrivals. At the beginning of the “eighties” scarcity of funds for the prosecution of public works, along with other considerations, necessitated the checking for a space of the stream of assisted immigrants. By 1883 the position had materially improved; but unemployment once more became serious in the late “eighties” and early “nineties,” mainly owing to the fall in the prices that New Zealand's products (notably wool) were realizing overseas, and to a further slackening of the rate of prosecution of public works. During both of these periods the unemployment position was so acute as to be responsible for a considerable exodus of male population to Australia and elsewhere.

Direct statistical evidence as to the extent of unemployment in New Zealand is available from the census (since 1896) and from the records of the Labour Department (since 1892). In addition, statistics of unemployment among trade-unionists were collected from trade-union secretaries by the Census and Statistics Department from 1925 to 1930.

Census Data on Unemployment.—The great disadvantage of the Census inquiry as an indicator of the trend of unemployment is that it provides data at quinquennial intervals only, up to April, 1926, since when only three censuses have taken place, one on 24th March, 1936, one on 25th September, 1945, and the other on 17th April, 1951. The results of the latter will not be available for some considerable time.

Census.Number of Males Unemployed.Proportion per Thousand Male Wage-earners.
12th April, 189614,759100
31st March, 19018,46748
12th April, 19068,18939
2nd April, 19117,15230
15th October, 19165,92026
17th April, 192111,06139
20th April, 192610,69434
24th March, 193635,77496
25th September, 19455,82318

The 1936 figure includes men on rationed relief work, but excludes men (16,222) partly unemployed but not on relief work. The 1945 figure included ex-servicemen recently returned from overseas and not then returned to work.

Unemployment Benefit.—In the years immediately preceding 1939 two forms of unemployment relief were available: the provision of work for unemployed under various employment promotion schemes, and the payment of sustenance without work (refer 1942 and earlier issues of the Year-Book). Measures for the promotion of employment are still in operation, but the payment of sustenance without work was discontinued on the introduction of a system of unemployment benefits under the Social Security Act, 1938. These benefits came into force on 1st April, 1939, and monthly figures of the number of benefits current for the seven years ended 1950 are as follows:—

Month.1944.1945.1946.1947.1948.1949.1950
January32031526572143926
February2722222204392919
March29219820535163012
April28919319032162712
May28618619038223916
June28824218341415616
July35325420251517324
August39627019763418825
September39829715493616233
October38237710046485030
November3063387127335123
December3683469127403015

PROMOTION OF EMPLOYMENT.—Reference to earlier issues of the Year-Book will show the measures taken during the depression and post-depression years to relieve unemployment and in particular to promote employment. Under Scheme 5 a maximum of 45,000 men were in receipt of part-time work in 1932 and 1933. Some of the schemes introduced are still in operation, though to a very minor extent. In recent years the labour situation has been characterized by a general high level of employment and a high number of vacancies in industry, and the only employment-promotion measures initiated have been small-scale seasonal schemes which provide work for a number of men in the winter months. Apart from these the only employment-promotion measure continuing in operation to any extent is Scheme 13, under which 184 men were employed at 31st March, 1950, as compared with 203 on 31st March, 1949. Most of these men are fit for light work only and are located in districts where employment opportunities are limited. Everything possible is done to place them in suitable private employment when the opportunity arises. Their wages are subsidized to an extent which brings their earnings up to the award rate for the type of work performed. They are allocated to different local bodies, charitable institutions, &c., and are engaged on work such as vegetable-production, and maintenance of parks and reserves and school grounds.

The operation of employment-promotion schemes is a function of the Department of Labour and Employment.

Information concerning the measures in operation for the rehabilitation of ex-servicemen will be found in Section 45.

Vocational Guidance.—Since 1938 full responsibility for the work of vocational guidance of pupils at post-primary schools, which for some years previously had been carried on almost entirely by voluntary organizations, has been taken by the Department of Education. A youth centre was established in each of the four main centres, and the work of guidance and placement was undertaken jointly by officers of the Education and National Service Departments. Particulars of placements by vocational guidance centres during the five years ended 31st March, 1945, are as follows:—

Year Ended 31st March,Boys.Girls.Totals.
Permanent.Temporary.Total.Permanent.Temporary.Total.
19412,2334302,6631,961 1,9614,624
19422,0083312,3392,0772042,2814,620
19432,5465133,0593,2212683,4896,548
19443,425773,5024,768624,8308,332
19454,760504,8105,141865,22710,037

The Education Department assumed full control of the youth centres (now called Vocational Guidance Centres) in 1943.

The numbers of those enrolled who were placed in employment during each of the calendar years 1946 to 1950 were as follows:—

Year Ended 31st December,Number Placed by Centres.Number Self-placed.Totals.
19462,6891,7624,451
19471,7231,2032,926
19481,4418432,284
19491,5646752,239
19501,6124562,068

National Employment Service.—As from 1st April, 1946, the National Employment Service was established with the principal function of promoting and maintaining full employment in New Zealand. The new Department was set up under the Employment Act, 1945. In fact, provision for Government Employment Bureaux had been made as early as 1891. From 1930 to 1936, the period of the operations of the Unemployment Board, the Bureaux functioned rather as unemployment registration offices than as placement services. In 1936 the activities of the Unemployment Board were transferred to the Employment Division of the Department of Labour and the bureaux replaced by a State Placement Service, which operated a widely used system of local labour exchanges. From 1942 to the end of March, 1946, this became merged in the Industrial Man-power Division of the National Service Department, and, with an augmented staff, carried out the wider and more complex functions of man-power direction and control. In this work the Industrial Man-power Division developed a much greater emphasis on the collection and use of employment and other economic data, on the research and planning aspects of employment, and on the co-ordination of industrial activities with man-power resources. The National Employment Service was built upon these foundations. A comprehensive historical and statistical survey of the Industrial Man-power Division of the National Service Department from 1940, to August, 1945, is given in parliamentary paper H-11A, 1945; a résumé of this paper was given in the 1945 Year-Book. The 1946 H-11A extended this survey to 31st March, 1946, all man-power control being finally lifted on 30th June, 1946. After twelve months' activity as a separate Department, the National Employment Service was, however, on the 1st April, 1947, amalgamated with the Department of Labour to form the present Department of Labour and Employment.

The main activities of the Department on the employment side are: the collection of employment information and the application of this information towards securing a continuing adjustment of matters affecting employment so as to maintain a policy of full employment at the highest productive level; assisting persons to secure work or more suitable work, and employers to secure labour, by maintaining twenty-six district employment offices, by operating camps and hostels for workers, and by other measures which may include occupational training or retraining; the administration of subsidized employment schemes for those unfit to compete in the ordinary labour market; and the operation of a Home Aid Service to provide domestic help to families in urgent circumstances.

The twenty-seven camps and hostels operated by the Department* at 31st March, 1950—comprising industrial workers' camps and hostels, immigration hostels, Public Service hostels, home aid hostels, and miners' hostels—provided accommodation for 3,175 workers.

The Employment Act, 1945, provided for the establishment of Advisory Councils and Committees to assist the Department in the effective administration of its employment service. Membership comprises representatives of workers' and employers' organizations under the chairmanship of a departmental officer. District committees are in existence in some eleven industries and national committees in the baking, clothing, freezing, printing, and tramway industries.

Immigration matters, including the maintenance of immigration hostels, are also handled by the Department. Reference to assisted immigration has been made on page 25 of this volume. Government sponsorship is extended to fare-paying passengers in certain cases (e.g., those of key technical and professional people urgently required here in the national interest), but to married people only where it is known that suitable living-accommodation is available. To advise the Minister of Immigration on immigration matters and to aid the Department in the implementing of immigration policy an Immigration Advisory Council was established in April, 1947. In each of the twenty-six districts where there are employment offices there is also an Immigration Welfare Committee whose function is to co-ordinate welfare activities in respect of new settlers, whether Government assisted or rot.

Of recent years special attention has been directed to the problem of Maori employment. Outstanding features of the Maori population are its rate of growth and the fact that the Maori people are largely resident in localities remote from the main centres of industrial activity. The Government therefore set up in 1948 a Maori Education and Employment Committee representative of six State Departments, including that of Labour and Employment, whose broad function is to determine practical measures for ensuring the continuing absorption of the Maori race into full employment, including employment promotion in areas of Maori population.

Half-yearly Surveys.—Commencing in 1946 the Department has carried out at half-yearly intervals a general survey of employment in New Zealand. These surveys are conducted by means of inquiries sent out to employers of labour, the results being published in the “Half-yearly Survey of Employment.” Returns are required from all establishments in which at least two persons (including working proprietors) are engaged. Government and local-authority employment is included. Each return covers six consecutive months, the initial survey (apart from a pilot survey taken for April, 1946) relating to the period May to October, 1946. Employers in farming, hunting, trapping, fishing, and waterfront work are not required to submit half-yearly returns. Seasonal industries (comprising meat-processing, fruit and vegetable preserving, dairy-factories, threshing and chaffcutting, and wool-stores) have since August, 1946, been covered by a separate monthly inquiry; Particulars of working proprietors and number of establishments are available at half-yearly intervals only. Following are tables showing the figures for the April and October months in each year taken from these surveys, a dissection being provided into the chief industrial groups. Separate tables are given for males and females, working proprietors are distinguished from employees, and the number of establishments covered is appended.

* Two women's hostels are operated by the Young Women's Christian Association on behalf of the Department.

Employment in industry on the 15th day of the months of April and October in each year is given in the following table.

Primary Industry (Other than Farming, Fishing, and Hunting).Secondary Industry.Transport and Communication (Other than Waterfront Work).Distribution and Finance.Domestic and Personal Services.Administration and professional.Seasonal Industries.Totals, All Industries Covered.
Male Employees
1946—October14,197127,29744,07150,8559,01635,51113,142294,089
1947—April14,340129,23545,06252,2899,20335,92920,887306,945
October14,855134,50545,41353,1389,33436,18614,293307,724
1948—April15,397135,03846,29754,6659,58736,88120,872318,737
October15,850137,78347,47354,8779,71137,27714,098317,069
1949—April16,058137,15348,16155,6099,86737,89220,819325,559
October15,852142,08448,74256,1779,84438,25614,022324,977
1950—April15,875141,35048,74557,2039,93738,53420,940332,584
Male Working Proprietors
1946—October45310,3671,5707,4982,17181410822,981
1947—April49010,0011,5757,1612,31552911922,190
October53910,1941,5077,1432,2684238822,162
1948—April57110,3661,5496,9362,25641912022,217
October62410,8671,6197,1422,3673969623,111
1949—April67911,3051,5466,9282,40338110823,350
October69311,5221,5767,0032,4343919823,717
1950—April71911,3011,5887,0492,4271869523,365
Primary Industry (Other than Farming, Fishing, and Hunting)Secondary Industry.Transport and Communication (Other than Waterfront Work).Distribution and Finance.Domestic and Personal Services.Administration and Professional.Seasonal Industries.Totals, All Industries Covered.
Female Employees
1946—October27336,6415,72529,67112,62431,3281,232117,494
1947—April24837,1285,68029,57012,78331,4241,410118,243
October25938,2565,86229,74412,64431,5601,299119,624
1948—April25637,7986,22030,27613,05932,1361,438121,183
October25038,0206,33430,30713,07432,2421,184121,411
1949—April24838,1706,43330,66713,29632,8051,341122,960
October25839,6656,58330,81812,97233,5681,263125,127
1950—April25739,9066,69831,67413,15333,9351,491127,114
Female Working Proprietors
1946—October1879321,2891,32121283,742
1947—April1865291,3291,36021583,807
October1893251,3651,33721483,843
1948—April2942291,3551,427195133,963
October51,059291,4301,51118664,226
1949—April21,185291,4801,543190114,440
October41,179181,5201,55118564,463
1950—April21,148311,5001,54618564,418

A dissection of the secondary industry column shown in the preceding table is now given over the same period.

Food, Drink, and Tobacco (Other than Seasonal).Textiles, Clothing, and Leather.Building Materials and Furnishings.Engineering and Metal Working.Miscellaneous Manufacturing.Power and Water Supply.Building and Construction.Totals, Secondary Industry (Other than Seasonal).
Male Employees
1946—October8,56612,26315,32938,17113,5567,80331,609127,297
1947—April8,89512,38215,70339,01513,6187,78331,839129,235
October8,86512,81316,48740,83414,3357,94033,231134,505
1948—April8,98412,81316,76440,99514,2947,83333,355135,038
October8,97812,82517,21941,29814,3568,16534,942137,783
1949—April9,02712,69617,15641,66014,5728,19433,848137,153
October9,12113,04817,69543,02715,0268,42135,746142,084
1950—April8,94912,88917,78542,88515,1828,51835,142141,350
Male Working Proprietors
1946—October9891,0941,0832,99573153,47010,367
1947—April9919241,0592,89165243,48010,001
October1,0299501,1173,05365963,38010,194
1948—April1,0699231,0903,14264053,49710,366
October1,1131,0241,1663,26868053,61110,867
1949—April1,1841,0371,2803,40867863,71211,305
October1,1911,0181,2763,50070853,82411,522
1950—April1,1581,0111,2573,43768643,74811,301
Food. Drink and Tobacco (Other than Seasonal).Textiles, Clothing, and Leather.Building Materials and Furnishings.Engineering and Metal Working.Miscellaneous Manufacturing.Power and Water Supply.Building and Construction.Totals Secondary Industry (Other than Seasonal).
Female Employees
1946—October4,46720,3721,0193,6145,85055176836,641
1947—April4,63520,5971,0743,7535,77656373037,128
October4,72421,2431,0473,8656,09655972238,256
1948—April4,64121,1521,0693,8685,76456074437,798
October4,74121,4501,0183,7325,74356876838,020
1949—April4,79621,4081,0243,8465,69158781838,170
October5,04622,0541,0714,0416,01260483739,665
1950—April4,95222,3261,0824,0356,05963481839,906
Female Working Proprietors
1946—October351392144181  879
1947—April352390133377  865
October342422134274  893
1948—April351447145080  942
October387500216784  1,059
1949—April448548307485  1,185
October462549216186  1,179
1950—April461524216478  1,148

The number of establishments covered by the National Employment Service surveys is now shown, the second part of the table giving an analysis of the secondary industry column contained in the first part.

Primary Industry (Other than Farming Fishing and Hunting).Secondary Industry.Transport and Communication (Other than Waterfront Work).Distribution and Finance.Domestic and Personal Services.Administration and Professional.Seasonal Industries.Totals, All Industries Covered.
1946—October57011,7332,03011,0593,5403,12864932,709
1947—April58411,9742,05211,1403,5763,10572133,152
October63312,3922,07211,2743,5823,09165133,695
1948—April67713,0792,08711,6403,7063,05472934,972
October69713,5012,12811,8053,7543,03166335,579
1949—April73714,0882,13811,8803,8193,06867736,407
October74214,2492,16112,1603,8623,07365936,906
1950—April76714,2112,18112,2223,8612,90066236,804
Food, Drink, and Tobacco (Other than Seasonal).Textiles, Clothing, and Leather.Building Materials and Furnishings.Engineering and Metal Working.Miscellaneous Manufacturing.Power and Water Supply.Building and Construction.Totals, Secondary Industry (Other than Seasonal).
1946—October1,2321,6251,3273,1551,0172213,15611,733
1947—April1,2731,6651,3923,2861,0292233,10611,974
October1,3121,7241,4723,4611,0672223,13412,392
1948—April1,3781,8941,5913,6921,0962253,20313,079
October1,4381,9471,6443,8081,1282233,31313,501
1949—April1,5411,9971,7433,9861,1762233,42214,088
October1,5331,9961,7544,0091,1892233,54514,249
1950—April1,5321,9911,7484,0401,1872253,48814,211

The table now following shows the National Employment Service totals of employment in industry under a more detailed industrial classification as at 15th April, 1949 and 1950; employment by the General Government, by local authorities, and by private employers being distinguished at the same time in the 1950 figures.

Industry.Number of Persons in Industry at the 15th April, 1949.Number of Persons in Industry at the 15th April, 1950.
Males.Females.
Males.Females.Government.Local Authorities.Private.*Government.Local Authorities.Private.*

*These figures are inclusive of working proprietors.

Food, drink, and tobacco (other than seasonal)—        
  Grain-milling75065  736  74
  Bread-bakeries2,625768  2,492  753
  Biscuit-making495429  504  427
  Cake and pastry making1,0501,624  1,067  1,577
  Sugar and confectionery1,381794  1,326  896
  Other food794505  824  553
  Beverages2,67932318 2,678  336
  Tobacco-manufacture437731  462  797
Textiles, clothing, and leather—        
  Tanneries and wool-scouring1,48154  1,448  63
  Fur dressing and manufacture284293  266  280
  Leather goods631421  616  445
  Artificial textiles290401  310  465
  Flax, rope, and twine5495912 463  48
  Woollen and knitting mills2,4292,604  2,474  2,697
  Other yarns and fabrics459210  569  261
  Clothing-manufacture3,56915,191  3,654  15,832
  Footwear-manufacture2,7211,970  2,784  1,990
  Footwear repair42533  370  35
  Other textile articles895720  934  734
Building materials and furnishings—        
  Town-sawmilling2,31175  2,513  82
  Builders' woodwork4,221157  4,369  178
  Furniture and cabinets4,325303  4,334  306
  Other wood manufacture1,157183  1,163  205
  Brick, tile, and stoneware2,41153  2,516  58
  Pottery and glass1,112208  1,164  207
  Lime, cement, &c.2,89975 52,978  67
Engineering and metalworking—        
  Engineering and metals14,6031,251  14,995  1,318
  Machinery (n.e.i.)695111  718  109
  Electrical goods manufacture3,976901  4,127  932
  Ships, engines, railway workshops, &c. 8,5471046,551 7881,17478318
  Vehicle and aircraft manufacture3,376206  3,604  228
  Vehicle and aircraft repair12,8391,059 30212,992 21,067
  Instrument, &c, manufacture1,032288  1,071  344
Miscellaneous manufacturing—        
  Chemicals and by-products4,1551,380  4,081  1,498
  Rubber manufacture1,473345  1,905  501
  Paper and pulp manufacture1,201676  1,243  724
  Printing, bookbinding, &c.7,1382,698518 6,784136 2,592
  Other manufacture (n.e.i.)1,283677  1,337  686
  Power, heat, light, and water production and supply—        
  Power and water production and supply8,2005872,4564,4601,13011541788
  Gas production and supply    476  14
  Building and construction37,56081813,33074024,8203548456
Primary Industry other then farming, fishing, and hunting—        
  Forestry2,1961171,987 125112 5
  Bush sawmilling6,96763466 6,44013 62
  Coalmining5,757413,462 2,25123 18
  Other mining87911  855  7
  Quarrying (n.e.i.)93818 184824 118
Transport and communication—        
  Rail transport19,9541,68417,5292,251751,3682523
  Road transport12,3977351,68160810,6686511674
  Water transport (not waterfront work)3,761302722,3521,291250266
  Air transport789146  554  169
  Post and telegraph12,8063,59513,252   3,869 
Distribution and finance—        
  Wholesale and retail trade50,21825,35321735851,273271926,375
  Financial establishments5,6112,5651,225 4,415701 1,943
  Insurance2,5041,613593 2,029308 1,259
  Other agencies4,2042,616  4,142  2,542
Domestic and personal services—        
  Hotels and catering7,01810,637236 6,808258 10,191
  Laundries, &c.1,5021,672  1,565  1,766
  Barbers, beauty shops, &c.9501,493  922  1,448
  Recreation, sport, &c.2,8001,0376777561,40025934743
  Administration and professional—        
Hospitals5,28613,6171,2353,9331261,00110,9541,876
  Medical, &c., services514857  479  871
  Hygienic services1,56878 1,318252 3465
  Education and instruction9,12510,1721,5257,6966281,1648,1691,588
  Art, sciences, and religion281157  275  166
  Government services (n.e.i.)13,0765,34013,183  5,446  
  Local authorities' services (n.e.i.)6,894661 6,700  689 
  Miscellaneous services1,5292,113  1,370  2,097
Seasonal—        
  Meat-processing, &c.14,690601 26514,400 1627
  Fruit and vegetable preserving69249964 56560 430
  Dairy factories3,555230833,769  364
  Threshing, chaff-cutting1192  85  1
  Wool-stores1,87120  1,876  14

NOTE.—The above table does not include Armed Forces personnel, 7,600 in April, 1949, and 8,900 in April, 1950, or persons engaged in farming, fishing, hunting, waterfront work, one-man business units, &c, estimated to total 239,300 in April, 1949, and 239,600 in April, 1950.

Au effective correlation of the figures shown in the table with those of employment in factories found on pages 407–410 of this volume is precluded by the differing definitions of “manufacturing industry”; also the national employment tabulations differ from factory production statistics in including managers and foremen, clerical workers, and distributing staff attached to manufacturing establishments in one figure with factory operatives.

VACANCIES, PLACEMENTS, AND DISENGAGED PERSONS.—In addition to these half-yearly surveys of the employment position as a whole, the Department maintains a month-to-month record of vacancies, placements, and disengaged persons seeking work.

Notified Vacancies.—There is at present a persistent lack of sufficient labour to satisfy the demands of industry, the extent and distribution of this shortage being measured to some extent by the number of unsatisfied vacancies at the end of each month. Particulars of such vacancies at the end of each month of 1949 and part of 1950 (together with monthly averages for the calendar years 1946–49 inclusive), classified according to broad industrial groups, are contained in the following table. This table does not necessarily cover the same establishments as in the preceding tables derived from half-yearly surveys; on the one hand, vacancies on farms and in domestic services are included in the following table; on the other hand, there is no obligation on employers to notify their vacancies to the Department.

Primary Industry.Building and Construction.Other Secondary Industry.Transport and Communication.Domestic and Personal Services.Administration and Professional.Distribution and Finance, &c.Totals.

*Excluding New Zealand Hallways Department.

Monthly Average Over Calendar Years
  19469301,67811,469966*1,2932,3831,08819,807
  19479641,55613,3692,8341,1782,7321,76324,396
  19488171,36411,6963,5611,1363,1981,71623,488
  19497051,2889,7013,4529922,9051,72020,763
Monthly Totals
1949—        
  January7331,3129,8243,5701,1603,1941,71021,503
  February9351,34310,0833,6351,2013,0991,73522,031
  March6151,3469,8773,5021,1343,0391,65521,168
  April5561,3819,9593,3451,0473,0131,71421,015
  May5091,1539,2373,3039572,9881,69619,843
  June5181,1669,3063,1128352,9001,66019,497
  July5581,2009,3863,0118302,7521,65319,390
  August5911,2269,3613,3337952,8021,60219,710
  Sept.7181,1699,1903,3068652,7571,61519,620
  October9251,3749,5693,5571,0132,6741,78920,901
  November9691,42410,1203,7271,0312,8031,88821,962
  December8371,36110,5014,0181,0372,8381,92922,521
1950—        
  January9141,41010,3244,2241,0382,7491,94422,603
  February8661,45110,3553,9511,0602,7651,83022,278
  March8431,51210,1534,0251,0732,8011,89222,299

A classification covering the same period by district grouping is now given.

Auckland.Wellington and Lower Hutt.Other North Island.Christ-church.Dunedin.Other South Island.Totals.
Monthly Average Over Calendar Years
19465,1095,9782,3842,6262,3651,34519,807
19474,6898,1113,2343,3473,0221,99324,396
19484,3097,8293,2393,2593,0471,80523,488
19493,2347,1913,0912,7592,7821,70720,763
1949—       
Monthly Totals
January3,7407,5042,8012,7242,8751,85921,503
February3,7977,5673,0682,7342,7622,10322,031
March3,3567,5652,9392,7522,8501,70621,168
April3,4477,5442,8882,7542,7921,59021,015
May3,0227,2512,8342,5032,7571,47619,843
June2,9127,2032,6212,6022,6741,48519,497
July2,8827,2352,5722,7702,5281,40319,390
August2,9207,0012,8432,8512,5681,52719,710
September2,9076,6452,9422,8832,4971,74619,620
October3,0166,8313,5022,9462,7161,89020,901
November3,4246,9084,1782,7242,8541,87421,962
December3,3877,0343,8992,8713,5101,82022,521
1950—       
January3,2557,3433,8612,8043,5051,83522,603
February3,4597,2723,5372,7933,3891,82822,278
March3,3547,1803,3952,8973,5691,90422,299

Placements.—An industrial analysis of placements by the National Employment Service during each month from January, 1949, to March, 1950 (with totals for 1946–49), follows: not all these placements were, however, of disengaged persons.

Primary Industry.Building and Construction.Other Secondary Industry.Transport and Communication.Domestic and Personal Services.Administration and Professional.Distribution and Finance, &c.Totals.
Annual Totals
19464,7563,6808,3221,8031,4561,9582,51724,492
19475,1832,6327,1421,2431,4921,7522,77222,216
19485,3392,7476,0951,0301,3571,9131,78420,265
19495,5792,8196,4771,3521,6002,0071,71621,550
1949—        
Monthly Totals
  January880165468891171341592,012
  February8942367101071252371432,452
  March1,1542305281031231421682,448
  April2011943341361041171151,201
  May2892816191301802311471,877
  June3173877181531582251242,082
  July2282724931081151511391,506
  August270237487791621421281,505
  Sept.2962716502111522851241,989
  October346256543631351711441,658
  November41418445693114881501,499
  December29010647180115841751,321
1950—        
  January995182653581452161752,424
  February1,4161766921351251951862,925
  March829239594841431661512,206

A classification of these placements by district grouping is contained in the next table.

Auckland.Wellington and Lower Hutt.Other North Island.Christ-church.Dunedin.Other South Island.Totals.
Annual Totals
19462,9212,8047,9833,0332,6905,06124,492
19472,4743,0726,3022,4642,1395,76522,216
19482,3132,9245,6092,3621,5365,52120,265
19492,9972,6435,8282,4661,9705,64621,550
1949—       
Monthly Totals
  January1981195271731658302,012
  February3103173582982159542,452
  March3062154251831211,1982,448
  April1651134341151352391,201
  May3132616551831623031,877
  June3603056043002282852,082
  July2951964721771472191,506
  August2461854431811862641,505
  September2344445922252062881,989
  October2662114053051193521,658
  November1681454841771164091,499
  December1361324291491703051,321
1950—       
  January2121815402711841,0362,424
  February3703104272251571,4362,925
  March298182440231999562,206

Summary.—The following table contains a summary of the numbers of notified vacancies, placements, and disengaged persons as recorded by the National Employment Service for each month of the period January, 1949, to March, 1950, inclusive, together with monthly averages for the calendar years 1946–49 inclusive.

Vacancies at End of Month.Placements During Month.Disengaged Persons at End of Month.
Males.Females.Total.Males.Females.Total.Males.Females.Totals.
Monthly Average Over Calendar Years
19468,42211,38519,8071,7712702,04136818386
194712,22512,17124,3961,4653861,85183992
194812,16211,32623,4881,2434461,68961667
194911,0569,70820,7631,3134831,79688492
1949—         
Monthly Totals
  Jan.11,48610,01721,5031,2917212,01246349
  Feb.11,79610,23522,0311,4151,0372,45230434
  March11,04910,11921,1681,3811,0672,44834438
  April10,94310,07221,0159512501,20141243
  May10,3989,44519,8431,4793981,877955100
  June10,0669,43119,4971,6913912,0821816187
  July9,9529,43819,3901,2612451,50619611207
  August10,3739,33719,7101,2312741,5051502152
  Sept.10,2679,35319,3201,4715181,9891141115
  Oct.11,3229,57920,9011,3003581,65873881
  Nov.12,4699,49321,9621,2332661,49952153
  Dec.12,5469,97522,5211,0562651,32142244
1950—         
  Jan.13,0999,50422,6031,5049202,42437239
  Feb.12,7919,48722,2781,5901,3352,92527330
  March12,6629,63722,2991,3798272,20619221

The accumulated demand for female labour is demonstrated by the number of placements in relation to the number of vacancies.

The number of disengaged persons still enrolled for placement by the National Employment Service reached its lowest level (21) at the end of March, 1950. It has usually been found that a considerable proportion of those concerned were suffering from some form of disability, making placement in suitable employment a matter of some difficulty.

SEASONAL FLUCTUATIONS IN EMPLOYMENT.—The adoption of the maintenance of full employment as a desideratum in many countries has prompted research into various employment problems, including that of the fluctuation or periodicity of employment. Information on the annual cycle of employment in New Zealand is available from several sources.

National Employment Statistics.—The following table shows in greater detail the month-to-month variations in male employment in seasonal industries for the latest eighteen months available—i.e., October, 1948, to March, 1950. The seasonal changes in female employment are less marked, such fluctuations as are evident originating mainly in the fruit and vegetable preserving industry.

Meat Processing, &c.Fruit and Vegetable Preserving.Dairy Factories.Threshing and Chaff-cutting.Wool Stores.Totals, Seasonal Industry.
Males
1948      
October8,3435654,077321,08114,098
November9,0675744,255432,00215,941
December13,2146374,286532,61420,804
1949      
January16,8386294,1922122,69224,563
February16,2586633,9332442,49823,596
March15,3516463,7342032,28322,217
April14,6386763,553821,87020,819
May13,6796193,209691,41018,986
June11,2266102,8045898015,678
July9,1036032,7434891513,412
August8,6735403,0954788513,240
September8,3565563,7644288213,600
October7,9645584,374301,09614,022
November8,8715854,624291,96816,077
December12,7587004,658352,65220,803
1950      
January16,6488274,5371692,64424,825
February16,3606404,2441102,43823,792
March15,2946534,048562,21922,270

Factory Production Statistics.—The chief features of seasonality in factory employment are shown in the following table, which covers the fifteen months ended March, 1948. The object of including the three additional months is to facilitate elimination of the secular trend which is superimposed upon the seasonal variations.

Males.Females.
Seasonal Industries.All Other Factory Industries.All Factory Industries.Seasonal Industries.All Other Factory Industries.All Factory Industries.
Meat Freezing and Preserving.Butter, Cheese, &c., Factories.Sausage - casing Manufacture.Chemical Fertilizers.Totals.Meat Freezing and PreservingFruit Preserving and Jam-making.
1947           
January13,3873,46930688118,04371,87389,91637930425,34726,030
February13,0603,22827790517,47072,71590,18540134726,46827,216
March12,8482,95924888416,93972,78689,72541544826,56927,432
April12,0362,63319790515,77174,06789,83839343026,88727,710
May11,4562,35815894414,91674,75989,67542238927,19728,008
June9,9851,94410993712,97575,21188,18642140127,17928,001
July7,4761,8699297610,41375,65786,07041640027,29528,111
August6,7882,241781,01110,11875,91186,02942337927,46628,268
September6,3792,944751,02410,42276,29286,71442033227,62028,372
October6,2473,414781,02610,76576,51987,28438624327,76528,394
November6,6403,5951181,03811,39176,61088,00140923828,02328,670
December11,2123,64029294516,08976,55492,64344227227,79128,505
1948           
January14,5443,51133787419,26675,21994,48543035925,83026,619
February13,8823,26028890618,33676,25294,58847640526,92327,804
March13,5342,88526192617,60675,92793,53347251226,92027,904

An examination of these figures of male employment indicates: (1) A fluctuation of approximately 8,500 in the seasonal industries with a crest in January and a trough in July or August, combined, however, with a secular rise of 1,200 between January, 1947, and January, 1948: (2) a total increase of 4,500 during the same period; (3) the whole of the annual gain in non-seasonal industries may be regarded as having occurred during the five months from March to August, other small increases being cancelled by a decline in December and January; and (4) it thus appears that a proportion (estimated at one-fourth) of the man-power released from seasonal factory industries during the slack months was taken up by general factory industries.

Generalizations made from these results must, of course, be made with caution. Similar movements, indeed, took place in the preceding year (except that the secular rise was confined to non-seasonal industries), but statistics for earlier years are more difficult of interpretation on account of the masking of normal seasonal movements by callings up for military service on the one hand and demobilizations on the other In periods of greater unemployment the temporary diversion of labour from non-seasonal to seasonal manufacturing industries during the busy months might not occur.

The table of female employment reveals little, if any, seasonal variation with the exception of the January recession. This recession is due partly to the practice adopted by some women operatives of leaving work temporarily after the Christmas period for an extended summer vacation, but partly also through withdrawals from factory work in favour of domestic duties, &c., tending to be higher at the end of a calendar year, these losses not being offset until later by the entry of juvenile and other recruitments.

Public Works.—Since 1935 figures have been available which include not only the number of workers in the direct employ of the Public Works Department (now Ministry of Works), but also those employed by contractors for public works, and those employed by local authorities on (a) works which are financed wholly or partly by the Ministry of Works, and (b) highway or road construction and maintenance. In the next table monthly figures on this basis are given for the last five years. Departmental and contractors' workmen on Housing Division work are not included.

Month.1945.1946.1947.1948.1949.
January9,92810,48711,09211,25411,629
February10,12710,44511,30011,57811,704
March10,17710,53211,08911,57811,914
April10,19410,30311,40311,54012,052
May10,28810,74211,53911,78312,048
June10,33910,84811,70811,81812,266
July10,19111,48312,02311,93112,406
August10,12311,35712,20512,29312,623
September10,20211,61512,28612,11012,862
October10,32211,60012,26812,13312,500
November10,52211,26511,74612,05912,517
December10,44811,04211,62111,81912,326

The seasonal pattern has in recent years tended to a peak in August or September.

Local Authorities Statistics.—The following five-year table of employment by local authorities exhibits no significant seasonal fluctuation with the exception of a slight January recession. In 1939–40 and some earlier years a maximum in August was observed. Employees of Electric-power Boards are included here as well as in factory employment. Those of Hospital Boards and Fire Boards are not included.

Month.1944–45.1945–46.1946–47.1947–48.1948–49.
April17,47517,74618,95119,40319,967
May17,62617,72719,16219,52020,090
June17,48717,72919,51119,56220,366
July17,90518,21419,49519,75220,390
August17,67718,18119,58919,81020,537
September17,98218,20119,49519,84120,516
October18,03318,74819,61619,97120,720
November18,15019,11719,49420,05120,625
December18,07519,01119,49520,11620,535
January17,73818,65319,25119,84820,153
February18,05119,36319,22920,07820,370
March17,95319,23919,32219,84520,490

Chapter 41. SECTION 41—INDUSTRIAL UNIONS

IN New Zealand dual provision for the registration and protection of unions of workers and employers exists in the Trade-unions Act and the Industrial Conciliation and Arbitration Act, and further provision has been made in the Industrial Conciliation and Arbitration Amendment Acts of 1936, 1943, and 1947, references to which are made in Section 39 of this volume. The 1936 amendment resulted in a considerable increase in membership of unions both of employers and of workers.

Provision was made under section 7, subsection (17), of the Industrial Conciliation and Arbitration Act, 1900 (now section 17 of the Industrial Conciliation and Arbitration Act, 1925), for the furnishing of an annual return showing the number and membership as at 31st December of unions registered under the Act. It is from this return (see parliamentary paper H-11) that the tables in this section have been compiled. Very little information is available as to registration of unions under the Trade-unions Act, which is now practically inoperative. The number of unions registered under this Act as at the end of 1949 was three only. Unions registered under the Trade-unions Act may also be registered under the Industrial Conciliation and Arbitration Act.

INDUSTRIAL UNIONS OF EMPLOYERS.—The numbers and membership of industrial unions of employers registered under the Industrial Conciliation and Arbitration Act as at the end of each of the last five years are shown in the following table.

As at 31st December,Industrial District.
Northern.Wellington.Canterbury.Otago and Southland.Taranaki.Marlborough.Nelson.Westland.North Island.South Island.New Zealand.Totals.
Number of Unions
194548844236123874324271
194649854237123875323274
194750864236124975324278
194846854236124985327277
1949498740391241074327282
Membership
19453,3772,4111,4081,4124662320312678757,32416,903
19463,4552,5371,4081,4684562722712470736,18816,033
19473,7872,6801,3891,5544565325713277766,46216,923
19483,8282,8761,4701,5684936226913265736,97517,811
19494,1323,0861,4861,6734156230312269726,97618,396

The number of unions of employers and their membership rose gradually to 149 unions, with 5,819 members, in 1914, the year following that of the prolonged waterside workers' strike. From that year until the passing of the 1936 Act, membership figures remained fairly constant, the only major variations taking place in the years 1931, 1932, and 1933, when successive decreases were recorded. The effects of the 1936 amending Act may be judged from the fact that the 1945 figure of membership showed an increase of approximately 290 per cent. over the 1935 total. Further increases have since taken place, and the 1949 figure of 18,396 is the highest yet recorded. A good deal of duplication, however, exists in employers' union membership, many employers belonging to two or more unions.

INDUSTRIAL UNIONS OF WORKERS.—Industrial unions of workers and their membership are shown in the next table as at the end of each of the last five years. It should be noted that the statistics cover only unions registered under the Industrial Conciliation and Arbitration Act.

The membership of workers' unions rose year by year, without exception, from 17,989 in 1900 to 73,991 in 1914. It fell off during the period of the 1914–18 war, but a phenomenal rise was recorded in 1919, the year immediately following the cessation of hostilities. The total for 1928 (103,980) was the highest recorded up to and inclusive of 1935, but is far below the present figures. The 1936 amending Act, which provided for compulsory union membership on the part of workers subject to an award or industrial agreement, has, of course, been responsible for the high figures of recent years.

From 1940 to 1943 the decreased membership reflected to a certain extent the withdrawal of men from industry consequent on the prosecution of the war, but in each of the subsequent years 1944 to 1949 increases in membership were recorded. Compared with 1935, the year prior to the introduction of compulsory union membership, the 1949 figure (275,977) shows an increase of 195,048, or 241 per cent.

As at 31st December,Industrial District.
Northern.Wellington.Canterbury.Otago and Southland.Taranaki.Marlborough.Nelson.Westland.North Island.South Island.New Zealand.Totals.
Number of Unions
19458661428920818222133382
19468559418718817212135374
19478558418718817202136373
19488659408618717203137374
19498558408718718174137372
Membership
194545,32134,87422,58821,8063,5271,0461,5833,20524243392,696229,103
194651,10936,88823,87622,2062,7769891,5303,384276334101,943247,498
194753,60838,90924,45922,8243,3031,0801,6813,370276836108,341260,379
194854,58742,14325,04723,7732,8797531,7703,646290932113,561271,100
194958,69043,85725,72023,9433,0057331,8883,508347730111,126275,977

A further picture of the progress that has taken place in the membership of workers' unions is afforded by the accompanying diagram, which shows the numbers at five-yearly intervals from 1905 to 1940, and annually thereafter.

In the following table industrial unions of workers are classified according to membership.

Year.Under 50.50 and under 100.100 and under 200.200 and under 300.300 and under 500.500 and under 1,000.1,000 and under 2,000.2,000 and under 3,000.3,000 and over.Totals.
Number of Unions
1901994330195411 202
191112062532623148 1307
1921139100703628281133418
193116277583130291431405
19411137170383832271317419
1945956561343638241217382
1946886060334236241417374
1947865959363741231418373
1948806660383338241223374
1949785967413038251321372
Membership
19012,7593,0184,0324,8152,0732,5201,6512,900 23,768
19113,5024,0197,6866,3608,8799,6859,414 6,08455,629
19214,1477,0759,7089,18211,06618,52714,5807,43316,00197,719
19314,3045,6657,9667,57811,24420,60218,5666,7447,85790,526
19412,9614,9489,7689,20715,06022,84135,41731,01299,835231,049
19452,5304,7198,6278,29413,40926,11532,49828,344104,567229,103
19462,5674,3258,5617,88316,14625,51532,80034,562115,139247,498
19472,4594,3758,0498,63013,98529,32432,06734,690126,800260,379
19482,1964,7338,7289,19912,41725,91532,23928,344147,329271,100
19492,2294,2559,6449,95212,31527,41235,35136,728138,091275,977
Percentage of Total Membership
190111.612.717.020.38.710.66.912.2 100.0
19116.37.213.811.416.017.416.9 11.0100.0
19214.27.39.99.411.319.014.97.616.4100.0
19314.86.38.88.412.422.820.57.48.6100.0
19411.32.24.24.06.59.915.313.443.2100.0
19451.12.13.83.65.811.414.212.445.6100.0
19461.01.73.53.26.510.313.314.046.5100.0
19470.91.73.13.35.411.312.313.348.7100.0
19480.81.73.23.44.69.611.910.554.3100.0
19490.81.63.53.64.59.912.813.350.0100.0

There has been a more or less steady growth in the average size of workers' unions, the trend being to a certain extent obscured at times by the cancellation of registration by some large unions. An average membership of 118 in 1901 increased in 1921 to 234, in 1941 to 551, and in 1949 to 742.

INDUSTRIAL AND GEOGRAPHICAL DISTRIBUTION.—In the next table industrial unions of employers as at the end of 1949 are shown according to industrial group, and membership according to industrial group and district.

Industrial Group.Membership—Industrial Districts.Number of Unions.
Northern.Wellington.Canterbury.Otago and Southland.Taranaki.Marlborough.Nelson.Westland.North Island.South Island.New Zealand.Totals.
Provision of—             
  Food, drink, &c.2,215729356846326912732  784,71860
  Clothing, footwear, and textiles447358912    3,0573,25312 
  Building and construction1,1961,04139435061331337   3,21547
  Power, heat, and light 24475148      10256911
  Transport by water162314159464  2311414
  Transport by land99735642    12116135410
  Accommodation, meals, and personal service272421356168 163079 186301,99040
Working in or on—             
  Wood wicker, seagrass, and fibre5571398      3535269
  Metal871382928     4323155617
  Stone, clay, glass, and chemicals351135    24  9611
  Paper, printing, &c.10610039487     1931921
  Skins, leather, &c.919123       437
  Mines and quarries1  3       42
  Land (farming pursuits)294234   7 33 2,2572,40212
  Miscellaneous 6111       1652379
    Totals4,1323,0861,4861,6734156230312269726,97618,396282

Similar information to that given for industrial unions of employers is now given for workers' unions, as at the end of 1949.

Industrial Group.Membership—Industrial Districts.Number of Unions.
Northern.Wellington.Canterbury.Otago and Southland.Taranaki.Marlborough.Nelson.Westland.North Island.South Island.New Zealand.Totals.
Provision of—             
  Food, drink, &c.9,3146,9353,6814,732  246 298307,76633,00251
  Clothing, footwear, and textiles8,3835,3304,7973,166   8   21,68418
  Building and construction6,0444,0882,2632,910451323526  8,42024,26938
  Power, heat, and light30430217092       8685
  Transport by water1,5771,29975581      9,77413,30621
  Transport by land3,9132,6581,5501,429503136294192  22,14832,82320
  Transport by air        94  941
  Communication29          291
  Accommodation, meals, and personal service6,5576,2692,7242,709400187230481   19,55726
Working in or on—             
  Wood, wicker, sea-grass, and fibre1,3031,1729014891435271970  6,39211,54720
  Metal8771,143645826    2,935 22,33328,75926
  Stone, clay, glass, and chemicals1,272404 444200 117   1922,62918
  Paper, printing, &c.   20      5,1355,1554
  Skins, leather, &c.81722811835       1,1986
  Mines and quarries2,138 5247998 41,125   3,89621
  Land (farming pursuits)18547  27     18,08618,3454
  Miscellaneous15,97713,9828,7446,0311,312343691706150 10,88058,81692
    Totals58,69043,85725,72023,9433,0057331,8883,5083,47730111,126275,977372

INDUSTRIAL ASSOCIATIONS.—At 31st December, 1949, there were 21 industrial associations of employers and 36 of workers, the former having 145 affiliated unions and the latter 192. The following summary shows the number of industrial associations of employers and workers in each industrial group, with the number of affiliated unions in each case. In most cases the associations cover the entire country.

Industrial Group.Employers.Workers.
Associations.Affiliated Unions.Affiliated Unions.Associations.
1948.1949.1948.1949.1948.1949.1948.1949.

* In process of cancellation.

Provision of—        
  Food, drink, &c.553938331615
  Clothing, footwear, and textiles    331313
  Building and construction343742332525
  Transport by water1110102255
  Transport by land1144111212
  Accommodation, meals, and personal service222623331718
Working in or on—        
  Wood, wicker, seagrass, and fibre1144221010
  Metal2144441313
  Stone, clay, glass, and chemicals21742245
  Paper, printing, &c.221111    
  Skins, leather, &c.11331144
  Mines and quarries    331010
  Laud (farming pursuits)11221133
  Miscellaneous11*3 785459
    Totals22211501453536186192

PROPORTION OF UNIONISTS.—The following table, showing the proportion of workers belonging to unions registered under the Industrial Conciliation and Arbitration Act to the total number of wage-earners in the country, is of interest as manifesting the movement in and the extent of unionism during the period under review. The figures given for total wage-earners are derived from census enumerations and would include professional, business, and other classes in which unionism prior to the passing of the amending Act of 1936 did not exist, and agricultural and pastoral occupations where it was practically non-existent. In addition, females are included in both sets of figures, although the proportion of women unionized prior to 1936 was negligible.

Year.Total Wage-earners.Year.Numbers of Workers on Rolls of Registered Unions.Percentage of Wage-earners on Rolls of Registered Unions.
1901 (March)224,3461900 (December)17,9898
1906 (April)269,0391905 (December)29,86911
1911 (April)304,2721910 (December)57,09119
1916 (October)302,1611916 (December)71,58724
1921 (April)370,6921920 (December)96,35026
1926 (April)414,6731925 (December)100,54024
1936 (March)496,5631935 (December)80,92916
1945 (September)473,6841945 (December)229,10348

Chapter 42. SECTION 42—INDUSTRIAL DISPUTES

THE compilation of statistics regarding industrial disputes was first undertaken by the Census and Statistics Department at the beginning of the year 1920. Information concerning disputes prior to that year was obtained by examination of the records of the Labour Department.

Under the system originated in 1920, returns furnished by Inspectors of Factories from inquiries made in each district form the main source from which information is obtained. It is considered that the statistics based on these reports are less liable to bias than would be the case if parties to the dispute or other private persons were relied on to furnish the information. It is the duty of an Inspector, during the course of a dispute in his industrial district, to collect all available particulars relating to it. The Inspectors have power to make the necessary inquiries, and thus are able to obtain complete information.

In these tabulations the term “industrial dispute” refers only to those disputes which result in a strike or a lockout, or where organized “go slow” or other passive resistance methods are clearly manifested. Many disputes are, of course, settled without recourse to such measures; these are not recorded for statistical purposes.

It occasionally happens that there are strikes in different centres with the same or similar objects, and occurring at or about the same time; in such cases the several disturbances are treated as one if the available evidence is sufficient to justify such a course, while the duration is taken as the maximum duration in any centre.

Reference to enactments framed to mitigate the severity of industrial disputes will be found in Section 39 of this Year-Book (Labour Laws and Allied Legislation).

NUMBER AND MAGNITUDE.—Although the records of the Labour Department contain certain information regarding industrial disputes which occurred prior to 1920 (the year in which the present system of reporting was instituted), the details are not sufficiently complete to permit of a full comparison with later years. This applies also in some measure to 1920, as information under some headings did not become available until 1921. Consequently, the following summary has been divided into two parts—viz., 1906–20 and 1921–49.

In the first part only the total number of disputes occurring during the period is shown, together with the number of disputes and workers involved where such information is available.

Year.Total Disputes.Disputes where Complete Details available.
Number.Workers Involved.
19061188
190765558
19082263
19091  
1910159255
191122171,375
191224225,746
1913737013,400
191420194,089
191586295
1916159899
191745252,734
191840294,056
191945324,030
1920777715,138

The more detailed figures for the period 1921–49 are as follows:—

Year.Strikes.Lockouts.Total Disputes.Firms affected.Workers Involved.Working-days lost.Estimated Loss in Wages.
       £
192177 7711210,433119,20890,477
192258 58676,41493,45660,782
192349 49797,162201,812114,074
192434 345814,81589,10562,732
192581283939,90574,55249,149
192659 59676,26447,81132,355
192738 38404,47612,48511,819
192837239569,25821,99722,304
192946147607,15125,88926,940
193038 38445,46731,66937,299
193123124376,35648,48644,544
193223 23679,355108,605105,715
193315 15433,55865,09959,334
193424 24373,77310,3937,121
193512 12652,32318,56315,266
193643 431287,35416,98012,886
193752 527311,41129,91632,129
193872 7210311,38835,45642,104
193966 6663615,68253,80160,394
1940561579910,47528,09728,062
194189 899715,26126,23734,552
194265 657814,34551,18963,179
194369 6911410,91514,68720,179
1944148114926929,76652,60274,012
1945154 1541,25539,41866,62992,546
194696 9612215,69630,39340,112
1947134 13423426,970102,725187,669
1948101 10188528,49493,464195,985
1949123 1231,31561,536218,172390,773

A refusal by seamen in 1947 to perform overtime work is not included in these figures.

The figures for strikes include eases where, following a recognized stop-work meeting, the employees did not resume work for some hours or until next day. This class of strike has assumed considerable importance recently, the number of such cases in the five years 1945–49 being 110, involving 24,038 workers and the loss of 22,310 working-days and of £41,036 in wages.

In calculating the number of working-days lost, it is assumed that work would have been continuous if no dispute had taken place. No allowance is made for loss of work from unemployment or other causes which might have occurred even if there had been no dispute, nor is the possibility taken into account of strikers being replaced with non-union labour. In some cases, such as shearing, there is a definite amount of work to be done, and a stoppage of work does not decrease the total amount of it, but only postpones its completion. In those cases the figures are perhaps more or less fictitious, but in the great majority of cases they represent a real loss.

From the preceding tables it will be seen that the number of disputes occurring in any one year was comparatively small until 1913, the high point for that year coinciding with the watersiders' and slaughtermen's strikes of the period. The total for 1913 was not surpassed until 1920 and 1921, the present system of recording industrial disputes being commenced in the latter year. In 1921 the number of disputes was at a relatively high level, but from then onwards, with the exception of one or two temporary fluctuations, the general trend in both number of disputes and number of workers involved showed a downward tendency, culminating in the low figure of 12 disputes involving 2,323 workers in 1935.

The last fourteen years have exhibited a significant reversal of this trend, although the upward movement was temporarily arrested in 1940, 1942, and 1946. In 1949 new high levels were reached by the number of firms affected (1,315), the number of workers involved (61,536) the number of working-days lost (218,172), and the estimated loss in wages (£390,773). The previous record for time lost (201,812 working-days) had stood since 1923. The greatest number of disputes in one year is still, however, the 154 shown for 1945.

The practice of members of a union returning home after a stop-work meeting or absenting themselves from work for a period as a “protest only” against an alleged injustice has increased greatly over the last few years. In 1945 these practices were responsible for 52 out of 154 stoppages, in 1946 for 22 out of 96 stoppages, in 1947 for 36 out of 134 stoppages, in 1948 for 38 out of 101 stoppages, and in 1949 for 70 out of 123 stoppages.

More than half the time lost in 1949 (109,500 working-days in fact) was due to a single strike—that of the Auckland carpenters—while one of the waterfront disputes, also originating in Auckland, involved a further loss of 40,191 working-days. These two stoppages accounted for over 68 per cent. of the total time lost in all 123 disputes occurring in that year and were chiefly responsible for the high figures already noted. Next in order—in point of lost time—came 1923 when serious disputes occurred in the coal-mining and shipping industries, 1921 (marked by strikes of waterside workers), 1932 (chiefly strikes of waterside workers and coal-miners), 1947 (stoppages among waterside workers, freezing-workers, and coal-miners), and 1948 (disturbances in the coal-mining, waterfront, and building and construction industries).

NATURE AND DURATION.—The next table shows the nature of the disputes and the number of workers involved during the years 1939–49.

Year.Nature of Dispute.Number of Workers Involved.
Direct Strike.Sympathetic Strike.Partial Strike.*Lock-out.Total.Direct Strike.Sympathetic Strike.Partial Strike.*Lockout.Total.

* I.e., where no actual cessation of work, but a “go slow” or other policy of protest adopted.

1939651  6614,811871  15,682
194052131578,6306141,1973410,475
194188 1 8915,247 14 15,261
19426311 6513,934211200 14,345
194366 3 6910,689 226 10,915
194414422114928,8935782326329,766
194514518 15436,6983342,386 39,418
19469213 9615,283270143 15,696
194712347 13419,4951,9585,517 26,970
19489038 10123,7454804,269 28,494
194911634 12359,6481,088800 61,536

The table following illustrates the duration of disputes during 1949.

Duration.Number of Disputes.Number of Workers Involved.Number of Working-days lost.Estimated Loss in Wages.
    £
1 day and less8027,86620,42040,934
Over 1 day but not over 281,3612,6734,747
Over 2 days but not over 348251,8794,149
Over 3 days but less than 1 week124,47911,07523,145
1 week but less than 2 weeks106,6839,30322,451
2 weeks but less than 4 weeks43,33611,63126,827
4 weeks but less than 8 weeks415,48651,691138,520
8 weeks and over11,500109,500130,000
      Totals12361,536218,172390,773

GEOGRAPHICAL DISTRIBUTION.—The following table shows the number of disputes in each industrial district for the last five years and also the number of workers involved. In 1949 the Northern District had the greatest number both of strikes and of workers involved, the waterfront being strongly represented in the number of workers involved, followed by the coal-mining, the land transport, and the building and construction industries.

Year.Northern.Taranaki.Wellington.Marlborough.Nelson.Westland.Canterbury.Otago and Southland.Totals.
Number of Disputes
194565 15 135632154
194645 14 31361596
194762111 1311414134
194851220 11089101
1949683182212612123
Number of Workers involved
194518,859 6,106 1710,1184553,86339,418
19467,929 2,642 1872,4447601,73415,696
194711,6292252,698 1506,4354,0441,78926,970
194816,3933315,547 71,8702,2602,08628,494
194939,08485010,952159833,7863,8492,77361,536

INDUSTRIAL DISTRIBUTION.—In the following table industrial disputes are classified according to the industrial groups in which disputes took place, this grouping being the same as that used in the compilation of wage and trade-union statistics.

Industrial Group.1945.1946.1947.1948.1949.
Number of Disputes
Provision of—     
  Food, drink, &c.2729291613
  Clothing, footwear, and textiles41121
  Building and construction117137
  Power, heat, and light2 2 1
  Transport by water1512172028
  Transport by land62645
  Accommodation, meals, and personal service31  1
Working in or on—     
  Wood, &c.73442
  Metal6 641
  Stone, clay, glass, chemicals, &c.33713
  Paper, printing, &c. 11  
  Skins, leather, &c.1    
  Mines and quarries—     
    Coal-mines7540533760
    Gold-mines2    
  The land (farming pursuits)11   
Miscellaneous121 1
    Totals15496134101123
Industrial Group.1945.1946.1947.1948.1949.
Number of Workers involved
Provision of—     
  Food, drink, &c.4,6894,3896,3993,7852,560
  Clothing, footwear, and textiles1,3182742142298
  Building and construction257422335,5732,062
  Power, heat, and light119 364 24
  Transport by water2,5603,6896,9315,69432,335
  Transport by land4,547614083,3463,858
  Accommodation, meals, and personal service31735  634
Working in or on—     
  Wood, &c.2,9579154111285
  Metal6,767 33138415
  Stone, clay, glass, chemicals, &c.24629389423570
  Paper, printing, &c. 179180  
  Skins, leather, &c.247    
  Mines and quarries—     
    Coal-mines15,1926,75411,1229,22419,285
    Gold-mines145    
  The land (farming pursuits)163   
Miscellaneous4113312 110
    Totals39,41815,69626,97028,49461,536

Out of a total of 608 disputes during the five years, 267, involving 61,722 workers occurred in connection with mining and quarrying; 114, involving 21,822 workers in the group covering provision of food, &c. (mainly meat-freezing); while in the group covering transport by water there were 92 disputes involving 51,209 workers. A more detailed analysis of disputes occurring during 1949 is given below.

Industrial Group.Number of Disputes.Number of Firms Affected.Number of Workers Involved.Number of Working-days lost.Estimated Loss in Wages.
Directly.Indirectly.Total.
Provision of—      £
  Food, drink, &c.13182,55372,5603,5768,531
  Clothing, footwear, and textiles16298 298206241
  Building and construction72052,062 2,062112,768134,748
  Power, heat, and light1124 242439
  Transport by water2822131,82950632,33566,086176,408
  Transport by land56623,858 3,858884724
  Accommodation, meals, and personal service157634 634509249
Working in or on—       
  Wood, &c.22285 2851,020950
  Metal1115 153860
  Stone, clay, glass, chemicals, &c.3370 706799
  Paper, printing, &c.       
  Skins, leather, &c.       
  Mines and quarries—       
    Coal-mines6013819,2731219,28532,99468,724
    Gold-mines       
  The land (farming pursuits)       
Miscellaneous11110 110  
      Totals1231,31561,01152561,536218,172390,773

CAUSES.—In the next table the causes of disputes which occurred during the last five years are shown. Under the heading “Wages” are included disputes concerning wages, overtime, or rates for piecework.

Disputes concerning the employment or non-employment of certain classes of persons are included under the heading “Employment.” This question usually arises in connection with trade-union affairs, such as, for instance, the dismissal of a worker on allegedly insufficient grounds, or, until recently, the employment of non-unionists. Since 1936, however, all adult workers who are subject to any award or industrial agreement have been required to be members of a union, and unless there are no unionists available an employer may not employ a non-unionist.

“Other working conditions” are of diverse nature, but some may be mentioned as follows: Distribution of work in coal-mines and on wharves, conveyance to and from work, atmospheric conditions in coal-mines, accommodation on ships, numbers of men to be allocated to certain duties, supply of food, method of handling cargo.

Under the heading “Sympathy” are included all disputes caused by workers striking, not on account of a grievance arising out of their own wages or conditions, but in sympathy with the demands of other workers.

Cause.1945.1946.1947.1948.1949.
Number of Disputes
Wages4221573027
Hours37442
Employment3212241214
Other working-conditions373614139
Sympathy1145 
Other causes3919313771
Number of Workers involved
Wages17,4383,58813,7808,39825,144
Hours3741,1774342,4401,196
Employment5,7271,1933,0923,4964,246
Other working-conditions8,3616,5762,7334,8092,529
Sympathy3342701,958620 
Other causes7,1842,8924,9738,73128,421

The following table gives further details for the year 1949.

Cause.Number of Disputes.Number of Firms Affected.Number of Workers Involved.Number of Working-days Lost.Estimated Loss in Wages.
Wages2741225,144174,968298,400
Hours251,1969242,025
Employment14284,24610,90922,018
Other working-conditions9192,5295,54613,829
Sympathy     
Other causes7185128,42125,82554,501
    Totals1231,31561,536218,172390,773

The high figures shown for “other causes” in 1949 are mainly accounted for by cases where members of a union did not resume work after a stop-work meeting or absented themselves for a period as a “protest only” against an alleged injustice.

METHODS OF SETTLEMENT.—Following is a table showing the methods of settlement of disputes during the last five years. “Negotiations under Act” covers negotiations under both the Industrial Conciliation and Arbitration Act and the Labour Disputes Investigation Act. Other headings are self-explanatory.

Method of Settlement.1945.1946.1947.1948.1949.
Number of Disputes
Negotiations under Act3017281610
Private negotiations between parties323237207
Intervention of third party352123822
Substitution 1121
“Protest” absence and extension of stop-work meeting5222363870
Other5391713
Number of Workers involved
Negotiations under Act8,9343,5046,3847,353921
Private negotiations between parties6,8933,9085,4842,1801,701
Intervention of third party8,1834,5792,6673,0716,178
Substitution 347281,582
“Protest” absence and extension of stop-work meeting14,1653,66611,07911,82145,249
Other1,243361,3094,0415,905

Further information for the year 1949 is given in the next table.

Method of Settlement.Number of Disputes.Number of Workers Involved.Number of Working-days Lost.Estimated Loss in Wages.
    £
Negotiations under Act109212,5066,287
Private negotiations between parties71,7015,54013,341
Intervention of third party226,17812,98225,361
Substitution11,5825,20310,860
“Protest” absence and extension of stop-work meeting7045,24974,514185,693
Other135,905117,427149,231
    Totals12361,536218,172390,773

RESULTS.—In compiling the table which follows, no dispute has been included as ending in favour of either employers or workers unless the result has been beyond question. In eases where workers have made more than one demand, succeeding in one or more and failing in one or more, or where they have made one or more demands and in respect of each have been partially successful only, the result has been treated as a compromise. Where strikers have returned to work without any definite decision being arrived at regarding the demands made, or where (as in the case of a sympathetic strike) no definite demand has been made, or where a strike is merely by way of a protest, the result has been recorded as indeterminate.

RESULTS OF DISPUTES

Result.1945.1946.1947.1948.1949.
Number of Disputes     
In favour of workers4031482118
In favour of employers171615166
Compromise212121511
Indeterminate7628505988
Number of Workers involved     
In favour of workers8,8812,9337,5684,3635,722
In favour of employers2,0923,6272,0893,3052,042
Compromise5,5513,3904,7742,064918
Indeterminate22,8945,74612,53918,76252,854
Number of Working-days lost     
In favour of workers19,0494,82815,7324,91713,394
In favour of employers3,2025,30215,66318,844109,953
Compromise14,92311,42023,92413,8823,270
Indeterminate29,4558,84347,40655,82191,555

Of disputes ending definitely in favour of one party or the other during the five years, workers succeeded in 158 instances and employers in 70. In the previous five years (1940–44) workers were successful in 110 instances and employers in 87.

In the following table the causes and results of disputes occurring during 1949 are shown in conjunction.

Result.Cause.
Wages.Hours.Employment.Other Working-conditions.Sympathy.Other.Totals.
Number of Disputes
In favour of workers5153 418
In favour of employers5 1   6
Compromise4 23 211
Indeterminate13163 6588
Number of Workers involved
In favour of workers7151,1261,868321 1,6925,722
In favour of employers1,927 115   2,042
Compromise262 44078 138918
Indeterminate22,240701,8232,130 26,59152,854
Number of Working-days lost
In favour of workers1,4528156,2301,189 3,70813,394
In favour of employers109,723 230   109,953
Compromise2,191 740283 563,270
Indeterminate61,6021093,7094,074 22,06191,555

Chapter 43. SECTION 43—INDUSTRIAL ACCIDENTS

As a result of an international conference of official statisticians held at Geneva in 1923, under the auspices of the International Labour Office set up by the League of Nations, the collection and compilation of statistics of industrial accidents on substantially uniform lines was undertaken in virtually all of the principal countries. From the administrative standpoint, the principal types of industrial accidents occurring in New Zealand may be classified as follows:—

Factory Accidents.—The Factories Act, 1946, requires that all accidents likely to incapacitate the injured person for at least forty-eight hours be reported to an Inspector of Factories. Reports are prepared by Inspectors of Factories in connection with each such accident causing loss of work amounting to three days or more—i.e., compensable accidents. These reports are ultimately forwarded to the Census and Statistics Department for statistical analysis.

Scaffolding Accidents.—The procedure adopted in connection with the compilation of statistics of scaffolding accidents is identical with that in connection with factory accidents.

Bush-working Accidents.—By section 14 of the Bush-workers' Act, 1945, a similar procedure was prescribed for bush-working accidents also; these were accordingly included for the first time in the 1946 statistics.

Accidents to Employees of the Railways Department, Ministry of Works, State Hydroelectric Department, Printing and Stationery Department, New Zealand Forest Service, and Post and Telegraph Department.—Individual reports of all accidents involving loss of work for three days or more are supplied by the respective Departments to the Census and Statistics Department for detailed analysis and tabulation.

Accidents to Employees in Mines and Quarries.—Certain particulars of accidents to employees in metalliferous mines, in coal-mines, and in quarries and other places under the Quarries Act, are given in successive numbers of the Mines Statement, parliamentary paper C–2. Commencing with the year 1938, individual reports of all accidents involving loss of work for three days or more are now being furnished, although information as to duration of disability and as to compensation paid is not available.

Other Industrial Accidents.—There are numerous types of industrial accidents for which it has not as yet been found practicable to collect and compile statistics. The principal classes of such accidents are those occurring to persons engaged in land transport (other than railway operation), in waterside work, and in marine navigation. Waterside and marine accidents are reported to the Marine Department, the former under authority of the General Harbour Regulations 1935 (made pursuant to the Harbours Act, 1923), and the latter under the Shipping and Seamen Act, 1908.

The Workers' Compensation Amendment Act of 1947, granted from the 1st April, 1949, a virtual monopoly of compensation insurance to the State Fire and Accident Department. Certain mutual insurance companies were specifically excluded from the monopoly, and so, by a further amending act of 1949, were British Commonwealth shipping companies if members of a protecting club. This concentration of compensation insurance business has enabled suitable arrangements to be made for the derivation of industrial accidents statistics from compensation claims handled by the State Fire and Accident Insurance Department and by the exempted companies, instead of from notifications of the occurrence of accidents made to the Department of Labour and Employment, extended by subsequent inquiry to include information as to compensation and time lost. The 1949 statistics will, in respect of accidents which occurred after the 31st March, be compiled on this new basis. The result will be a greatly improved coverage, waterfront and marine accidents being the only important types of industrial accident still excluded from the scope of the statistics. Although the Workers' Compensation Amendment Act, 1950, has terminated this monopoly and restored workers' compensation insurance to general competition among insurance companies as from 1st April, 1950, it is hoped that arrangements will be made to continue to obtain particulars of compensation claims in a similar manner.

FREQUENCY RATES.—The formula in use for computing frequency rates in respect of industrial accidents in New Zealand is based on the number of accidents recorded per 100,000 man-hours worked. For the purpose of calculating the number of man-hours of exposure to accident risk, data as to the number of employees in establishments coming under various industrial headings have been compiled by the Census and Statistics Department from returns furnished annually for the purpose by the Inspectors of Factories of the Department of Labour and Employment; while information as to the hours worked has been ascertained from awards, and supplemented by the statistics of short time and overtime normally compiled from data collected with the annual census of factory production. Similar data have been obtained from the records of the Post and Telegraph and Railways Departments, the Ministry of Works, and the New Zealand Forest Service. One hour's work performed by one man is taken as a unit. Data as to man-hours are not available in the case of mining or scaffolding operations, nor are compensation data in respect of mining accidents. The compensation figures shown throughout the section include damages, if any, awarded by a judgment of the court, medical expenses and, in the case of fatal accidents, funeral expenses also.

Year.Total Accidents.Accidents per 100,000 Man-hours worked.*Accidents where Particulars of Compensation available.Total Compensation or Damages paid in such Cases.Compensation per Case where known.

* Excluding scaffolding and mining accidents.

† Excluding mining accidents.

‡ Excluding forestry and bush-working accidents.

§ Excluding bush-working accidents.

    ££
194415,5143.19610,961266,52424.3
194514,5272.98410,377237,21622.9
194615,1233.016§11,289258,62122.9
194714,7833.00211,912312,03326.2
194815,7213.14912,693378,76129.8

Compared with the previous year the 1948 total shows an increase of 938 accidents or 6.3 per cent., the greatest numerical movement (an increase of 680) being in the factory accidents, and the greatest percentage movement (an increase of 74 per cent.) having occurred in the scaffolding group.

The distribution of industrial accidents in 1947 and 1948 according to the source of information (accidents to Printing and Stationery Department employees being included in the Factory group) is indicated in the following table.

Class.Total Accidents.Accidents per 100,000 Man-hours worked.Accidents where Particulars of Compensation available.Total Compensation or Damages paid in such Cases.Compensation per Case where known.
1947.1948.1947.1948.1947.1948.1947.1948.1947.1948.

* No information available.

† Excluding scaffolding and mining accidents.

‡ Excluding mining accidents.

       ££££
Factories6,9287,6082.3512.6026,9207,584182,722216,36026.428.5
Public works and State Hydro-electric Department9178255.0714.51091382119,95727,56921.933.6
New Zealand Forest Service34642510.03911.0703464254,6629,36413.522.0
Bush-working4716166.8519.07447160722,4.5925,34747.741.8
Scaffolding91158**9115612,69614,281139.591.5
Hallways2,7432,6655.7135.3762,7362,66556,97975,08320.828.2
Post and Telegraph4364351.8641.52843543512,55810,75728.924.7
Mining2,8512,989********
    All classes14,78315,7213.0023.14911,91212,693312,033378,76126.229.8

It is usual for scaffolding accidents to involve the highest compensation per accident, owing to the proportionately greater number which terminate fatally or result in permanent disability. There were eight accidents causing permanent partial disability and two fatal accidents in this small group during 1948, while the group having the next highest average compensation per accident (bush-working) included sixteen accidents causing permanent partial disability and six fatalities.

In the table following, industrial accidents during the years 1947 and 1948 are classified into certain important industrial groups. Details for individual industries, under this and other headings, are published in the Statistical Report on Industrial Accidents issued by the Census and Statistics Department.

Industrial Group.Total Accidents.Accidents per 100,000 Man-hours worked.Accidents where Particulars of Compensation available.Total Compensation or Damages paid in such Cases.Compensation per Case where known.
1947.1948.1947.1948.1947.1948.1947.1948.1947.1948.

* Data on which to compute not available.

† Excluding scaffolding and mining accidents.

‡ Excluding mining accidents.

§ Including State Hydro-electric Department employees on construction work.

Provision of—          
       ££££
  Food, drink, &c.4,4024,3126.2546.2384,3974,30581,92379,81218.618.5
  Clothing, footwear, and textiles1922210.3200.3701922195,8938,17030.737.3
Building and construction—          
  Public works§8137415.1084.69980973717,43625,74621.634.9
  Scaffolding91158**9115612,69614,281139.591.5
Power, heat, and light—          
  State Hydro-electric104844.7973.327104842,5211,82324.221.7
  Factories1101221.4691.6961101212,2752,76820.722.9
Communications and land transport—          
  Post and Telegraph4364351.8641.52843543512,55810,75728.924.7
  Railways2,7432,6655.7135.3762,7362,66556,97975,08320.828.2
  Personal services25150.5030.37425152591,05210.470.1
Working in or on—          
  Wood, seagrass, &c.—          
  Factories7661,1082.5733.5437651,10034,75747,76745.443.4
  New Zealand Forest Service34642510.03911.0703464254,6629,36413.522.0
  Bush-working4716166.8519.07447160722,45925,34747.741.8
  Metal7259931.0611.49172498919,67839,71627.240.2
  Stone, clay, glass, &c.5516272.0962.29355062723,18624,44142.239.0
  Paper, printing, &c.1061410.6640.8791061396,2419,89258.971.2
  Skins, leather, &c.47630.6631.35847638,3382,692177.442.7
  Mines and quarries2,8512,989********
  Miscellaneous460.0920.093461725043.18.4
    All groups14,78315,7213.0023.14911,91212,693312,033378,76126.229.8

Of the industrial groups enumerated, the highest frequency rate—i.e., accidents per 100,000 man-hours worked—was in both 1947 and 1948, recorded by the New Zealand Forest Service. Bush-working and the food, drink, &c., group followed in that order. The comparatively high rate shown in the food, drink, &c., group is largely due to the frequent accidents which occur in the meat-freezing industry. The lowest rate was recorded by the miscellaneous group, and the next lowest by the clothing, footwear, and textiles group.

The following table shows, for the last five years available, the average compensation paid, in conjunction with the extent of disability.

YearTemporary Disability.Permanent Disability.Fatality.Total.
Number of Cases.*Average Amount of Compensation.Number of Cases.*Average Amount of Compensation.Number of Cases.*Average Amount of Compensation.Number of Cases.*Average Amount of Compensation.

* Where amount of compensation known.

  £ £ £ £
194410,72213.9213418.6261,100.010,96124.3
194510,18714.2165385.5251,160.710,37722.9
194611,05213.9206352.6311,043.411,28922.9
194711,65313.4224473.6351,433.411,91226.2
194812,42516.1234553.8341,447.712,69329.8

The maximum amount, irrespective of medical and funeral expenses, which may be paid in respect of fatalities under the Workers' Compensation Act was until 1st April, 1948, £1,000. At that date it was increased to £1,500, with a now provision that no deduction is to be made from this amount on account of any weekly payments due to incapacity prior to the occurrence of death unless these payments exceed £250 in total. From the 1st September, 1949, the maximum amount was further raised to £1,750. Prior to 1942 the average amount paid in respect of fatalities was considerably below the maximum. This is explained by the fact that in cases where a deceased worker had no dependants, only medical and funeral expenses are paid; and that in cases of partial dependency the amount paid as compensation varies in proportion to the extent of such dependency. Should, however, the worker's dependants take proceedings at common law (where negligence must be proved) the amount of compensation depends on the verdict of the jury, and it is not limited to the statutory maximum under the Act. There were several cases of this kind following fatalities in each of the five years shown above and this accounts for the marked increase over previous years in the average amount of compensation (inclusive of damages) paid. Similar action has also been taken by the worker himself in some cases of permanent disability

CAUSE OF ACCIDENT AND EXTENT OF INJURY SUSTAINED.—In regard to the extent and degree of the disability sustained, it is usual to distinguish fatal accidents, accidents causing temporary disability, accidents causing permanent partial disability, and accidents causing permanent total disability. Very few cases of permanent total disability occur in New Zealand, practically the whole of the cases shown under “permanent disability” resulting in partial disability only. As stated elsewhere, New Zealand Forest Service and bush-working accidents are included from 1946 onwards.

In the actual compilation of the statistics difficulty occasionally arises as to whether a particular injury should be regarded as temporary or permanent; and in cases of doubt the conservative practice has been adopted of classifying the injury in the temporary-disability class. The following table, showing cause of accident in conjunction with degree of disability, relates to the five-year period 1944–48.

Cause.Temporary Disability.Permanent Disability.*Fatality.Total.Percentage of Total Accidents.

* Including permanent total disability cases as follows: 1944, 3; 1945, 2; 1946, 3; 1947, 1; 1948, 3; total 12.

Machinery—     
  Prime movers874 910.1
  Transmission2512272800.4
  Lifting-machinery1,98679112,0762.7
  Power-working machines6,885573157,4739.9
Vehicles10,1971486210,40713.8
Explosions, fires, and hot substances1,4703171,5082.0
Poisonous and corrosive substances934419391.2
Electricity1866152070.3
Falls of persons—     
  From elevations3,00766203,0934.1
  Into excavations5672 5690.8
  Slipping and stumbling on the level3,60318 3,6214.8
Stepping on or striking against fixed objects—     
  Stopping on339  3390.4
  Striking against3,7192333,7455.0
Falling objects, not being handled by the person injured2,01837192,0742.7
Falls of earth1,91776342,0272.7
Handling of objects—     
  Heavy14,680105714,79219.5
  Sharp4,74319 4,7626.3
  Hand-trucks, &c.1,96315 1,9782.6
Continual handling1,0002 1,0021.3
Hand-tools—     
  In hands of person injured—     
  Glancing of tool8,41493 8,50711.2
  Breaking of tool74  740.1
  Flying particles1,68221 1,7032.3
  Other1,14610 1,1561.5
In hands of other than person injured3316 3370.4
Animals304213070.4
Miscellaneous—     
Strains, sprains, and septic wounds undefined as to cause sustained while slaughtering1,0282 1,0301.4
Doors, windows, covers, gates (excluding elevators)86411 8751.2
Other687456960.9

Any consideration of avenues of accident prevention requires information concerning the relative importance of the various causes of accident, which are set out in the foregoing table.

Similar information according to the principal types of industrial accidents is now-given for the same period as that covered by the preceding table.

Class.Temporary Disability.Permanent Disability.*Fatality.Total.Percentage of Total Accidents.

*Including permanent total disability cases as follows: 1944, 3; 1945, 2; 1946, 3; 1947, 1; 1948, 3; total, 12.

† Information from 1946.

Summary
Factories32,7837996033,64244.5
Public works and State Hydro-electric Department4,719101234,8436.4
New Zealand Forest Service1,0811011,0921.4
Bush-working1,20137151,2531.7
Scaffolding4933395350.7
Railways13,874824013,99618.5
Post and Telegraph1,9481871,9732.6
Mining17,9832995218,33424.2
    Totals74,0821,37920775,668100.0

LENGTH OF EXPERIENCE AT PROCESS: Factory Accidents only.—In recent years information has been obtained regarding the length of experience of the employee at the work on which he was engaged at the time of the accident. The information thus obtained in respect of factory accidents is given below for the years 1944–48. The necessary information was not available in all cases, the number covered representing approximately 94 per cent. of the total.

Length of Experience at Process.1944.1945.1946.1947.1948.
No. of Cases.Per Cent. of Total.No. of Cases.Per Cent. of Total.No. of Cases.Per Cent. of Total.No. of Cases.Per Cent. of Total.No. of Cases.Per Cent. of Total.
Under 6 months1,64125.71,74629.41,93932.12,10032.72,20330.9
6 months and under 1 year68210.75829.85098.46009.46979.8
1 year and under 2 years69810.95539.35539.16319.883811.7
2 years and under 3 years68010.74768.04998.36039.46769.5
3 years and under 4 years5658.94838.13776.23044.73795.3
4 years and under 5 years3385.33896.53485.82754.32813.9
5 years and under 10 years83313.185114.390815.087913.795713.4
10 years and under 20 years6069.55669.561410.267310.56849.6
20 years and over3335.23015.12984.93525.54185.9
      Totals6,376100.05,947100.06,045100.06,417100.07,131100.0

The preceding table should be studied in conjunction with the following one showing percentage distribution according to age-group. The recent rise in the proportion of accidents occurring to factory workers with under six months' experience (from 25.7 per cent. in 1944 to 32.7 per cent. in 1947) suggests more frequent changes of employment, including perhaps seasonal changes. The age distribution is also still reflecting the employment of older men in industry. Accidents to workers aged 35 years and over comprised 27.7 per cent. of the total in 1939 and 41.6 per cent. in 1948.

Age, in Years.1944.1945.1946.1947.1948.
No. of Cases.Per Cent. of Total.No. of Cases.Per Cent. of Total.No. of Cases.Per Cent. of Total.No. of Cases.Per Cent. of Total.No. of Cases.Per Cent, of Total.
Under 16981.5641.0540.9430.6480.7
16 to 201,03915.992315.185713.590913.31,11715.1
21 to 2488013.580713.293014.71,13016.61,23316.6
25 to 341,92529.51,80029.51,92130.41,91128.01,93126.0
35 to 441,37921.11,34122.01,36021.51,41820.81,53320.6
46 to 5470010.771611.771811.386412.798513.3
55 and over5057.84567.54857.75438.05757.7
    Totals6,526100.06,107100.06,325100.06,818100.07,422100.0

NATURE OF INJURY.—A classification of accidents according to the nature of the injuries sustained gives the following results for the years 1944–48.

Nature of Injury.1944.*1945.*1946.1947.1948.Totals, 1944–48.

* Excluding accidents to forestry-workers and bush-workers.

† Traumatic only. In addition there were: in 1944, 54 surgical amputations; in 1945, 32; in 1946, 36; in 1947, 36; and in 1948, 40.

Contusions and abrasions4,4723,7293,7593,3953,41718,772
Burns and scalds5305396295715792,848
Concussions5052577778314
Cuts and lacerations3,5123,4183,8373,8404,05418,661
Punctures6576638338728803,905
Amputations114103143134186680
Dislocations4643423859228
Fractures4654295647089063,072
Sprains and strains4,3204,0104,0664,1274,44620,969
Other and ill-defined1,3481,5411,1931,0211,1166,219
    Totals15,51414,52715,12314,78315,72175,668
Cases where septic poisoning occurred—      
Number2,0321,8612,1912,4022,41510,901
Percentage of all accidents13.112.814.516.215.414.4

A feature of special interest brought out by this table is the relatively high proportion of accidents in which septic poisoning followed.

PART OF BODY AFFECTED.—Informative figures showing the number of cases in which the different parts of the body were affected by industrial accidents which occurred during the years 1944–48 are given in the following table.

Part of Body affected.1944.*1945.*1946.1947.1948.Totals, 1944–48.

* Excluding accidents to forestry-workers and bush-workers.

Head2582442202552521,229
Eyes6906506516066733,270
Rest of face1842112162101911,012
Neck8287785168366
Back1,8091,6991,6051,5061,6358,254
Thorax and contents6496456295956463,164
Abdomen and contents3282802403133301,491
External genitals3333253327151
Upper limbs—      
Collarbone and shoulder5104824864754792,432
Arm9739439868279204,649
Hand and wrist2,1941,9551,9552,0502,07010,224
Finger and thumb3,8133,6844,1414,1304,37420,142
Lower limbs—      
Pelvis, hip, and thigh3523273512752711,576
Leg1,5121,4011,5191,4041,5507,386
Ankle and foot1,7871,6551,7951,7711,9798,987
Undefined or multiple3402312262822561,335
    Totals15,51414,52715,12314,78315,72175,668

Accidents to the fingers and hands form a large proportion of the total, no less than 30,366 (40.1 per cent.) out of an aggregate of 75,668 in the five years covered by the above table coming within that category. Next in order came cases in which an injury to the ankle or foot was sustained with 11.9 per cent., the back with 10.9 per cent., the leg with 9.8 per cent., the arm with 6.1 per cent., and eyes with 4.3 per cent.

A tabulation made for 1948, correlating nature of injury with part of body affected, showed that the most common type of accident was to the fingers and thumbs, resulting in cuts or lacerations: 2,559 of the 15,721 accidents tabulated came under this category. Of the 226 cases of amputations (of which 186 were traumatic and 40 were surgical), 199 resulted in loss of some part of the fingers or thumbs. Contusions of the fingers and thumbs numbered 803, of the hands 504, of the thighs and legs 623, and of the feet, 582; cuts and lacerations of the hands amounted to 602. Of the 4,446 sprains, 1,460 resulted in injury to the back, while sprained thighs, legs, and feet accounted for 1,264.

DURATION OF INCAPACITY.—A further measure of the extent of disability is furnished in cases of temporary disability by data as to the duration of absence from work as the result of the accident. A summary of this aspect, together with the number of cases of permanent partial disability and fatality, is given below for the years 1945–48, together with the totals for the five year period, 1944–48. Information as to time lost is not available for mining accidents, and these are excluded.

Duration.1945.*1946.1947.1948.Totals, 1944 to 1948.*
Number.Per Cent.Number.Per Cent.Number.Per Cent.Number.Per Cent.Number.Per Cent.

* Excluding accidents in 1944 and 1945 to forestry-workers and bush-workers.

1 week or under2,10220.22,34020.72,61721.92,88622.712,05821.0
Over 1 week to 2 weeks3,50733.83,82233.84,06134.04,15732.719,15533.4
Over 2 weeks to 4 weeks2,76226.62,90825.73,00325.23,05924.014,70925.7
Over 4 weeks to 6 weeks8067.88867.89177.71,0638.34,6118.0
Over 6 weeks to 13 weeks7237.08097.17976.79067.13,9957.0
Over 13 weeks to 6 months2112.02101.91971.62652.11,1181.9
Over 6 months760.7770.7610.5890.73920.7
Total specified cases of temporary disability10,18798.111,05297.711,65397.612,42597.656,03897.7
Cases where employee did not return or duration not stated40.0140.180.1310.2610.1
Permanent disability1681.62141.92352.02421.91,0801.9
Fatality270.3310.3360.3340.31550.3
    Totals10,386100.011,311100.011,932100.012,732100.057,334100.0

In many cases the injured employee did not cease work immediately, a considerable period intervening in some instances. The following table shows, for such cases occurring during the year 1948, the length of time elapsing before the employee left work, and the final cause of cessation of work.

Factories.Public works.New Zealand Forest Service.Bush-working.Scaffolding.Railways.Post and TelegraphTotal.
Period elapsing        
1 week or less1,326672567238581532,519
Over 1 week and up to 2 weeks182134657310293
Over 2 weeks10111766646201
    Final cause        
Incipient septic poisoning87440233513230461,261
Strains399218211384961872
Other causes33630523841662880
    Totals1,609913679349951698,013
Percentage of all accidents (i.e., percentage of delayed-action cases to total accidents in each class)        
21.111.08.512.821.537.338.923.7 

The preceding table indicates that many employees suffering from minor injuries pay little attention to such injury, especially in the case of slight cuts, strains, or abrasions. This neglect often causes more severe pain (or with cuts and abrasions, septic poisoning), and the absence then enforced is usually longer than if the injury had received immediate attention. Lost time usually entails a reduction in wages, especially if the injury results in under three days' absence, in which case no compensation is payable. Further, in the case of apprentices, lost time has to be made up at the termination of the period of apprenticeship, and those two considerations are likely to militate against the worker ceasing work immediately on account of a minor injury. In many cases efforts are being made on the part of employers to reduce aggravation of injuries through neglect by the establishment of first-aid posts at the works.

ACCIDENT SEVERITIES.—Severity rates are calculated according to the formula: man-hours lost through accidents per 100,000 man-hours worked. In the ease of fatal accidents and accidents resulting in permanent disability the assessment for time lost may or may not take into account variations in the expectation of working-life destroyed by the accident in accordance with the age of the worker killed or permanently injured. In view of the fact that the age of the individual is not particularly relevant to the character of the hazard from which the injury has occurred, for the purpose of calculating the accident-severity rates shown below a constant loss of 9,545 calendar days is counted for each fatality irrespective of the age of the person at the time of death. The effect of taking into account the actual age is shown in the Statistical Report on Industrial Accidents. In respect of permanent partial disablement an international scheme for the apportionment of loss of earning-power caused by accidents of this nature has been drawn up by the International Labour Office. Under this scheme, which has been adopted with some slight modification in the treatment of New Zealand statistics, time lost on account of permanent partial disability is assessed on the basis of a proportionate part of the time lost in connection with injuries resulting in death or permanent total disablement. For example, dismemberment or the loss of the use of a hand is regarded as a 50–per-cent. disability—that is, the time lost on account of impaired working capacity in this case is assessed as 50 per cent. of 9,545 calendar days—i.e., 4,773 calendar days.

A simpler concept is that of “average time charge,” which is measured by the total time lost (including assessments for fatalities and permanently disabling injuries) divided by the number of accidents. This rate is shown in the following table as “calendar days (i.e., man-days) lost per accident.”

The severity rate for all accidents during the period 1944–48 has varied between 1,367 (in 1945) and 1,545 (in 1944). The extent of the toll on industry exacted by industrial accidents is realized when it is considered that during the five years 1944–48 one hour was lost as a result of such accidents out of every sixty-nine hours worked in the industries covered by the following table. Reports on mining and scaffolding accidents do not provide the necessary data for inclusion in that portion of the table.

1944.1945.1946.1947.1948.

* Excluding mining accidents.

† Excluding bush-working and forestry accidents.

‡ Excluding scaffolding and mining accidents.

§ Excluding bush-working accidents.

Total cases resulting in—     
  Temporary disability15,18514,26714,80414,44515,381
  Permanent disability284221283292299
  Fatality4539364641
    Totals15,51414,52715,12314,78315,721
Calendar days lost per accident (i.e., time charge)*8981848986
Man-hours lost per 100,000 man-hours worked (i.e., severity-rate)1,5451,3671,3885§1,4731,491

Comparison of the severity rates as between different industrial groups is affected by the varying proportions of serious accidents and fatalities in different industries in different years. In the main groups covered by the cumulative table for the five years 1944–48 shown below, the effect of this factor is minimized by the relatively large number of accidents classified.

Industrial Group.Number of Accidents resulting inNumber of Accidents per 100,000 Man-hours worked (Frequency Rate.)Calendar Days lost, per Accident (Time Charge).Hours lost per 100,000 Man-hours worked (Severity Rate).
Temporary Disability.Permanent Disability.Fatality.Total.

* Data on which to compute not available.

† Information for 1946–48 only.

‡ Excluding mining accidents.

§ Excluding scaffolding and mining accidents.

¶ Information for 1947–48 only.

Provision of—       
  Food, drink, &c.21,408219921,6366.655401,508
  Clothing, footwear, and textiles1,0783921,1190.377103223
  Building and construction—       
  Public works and the State Hydro-electric Department4,42199234,5436.0161424,897
  Scaffolding493339535*419*
  Power, heat, and light6531626711.58799894
  Communication and land transports—       
  Post and Telegraph1,9481871,9731.69779767
  Railways13,874824013,9965.943702,379
  Personal services645 690.303225390
Working In or on—       
  Wood, seagrass, &c.—       
  Factories3,175244173,4362.3401712,285
  New Zealand Forest Service1,0811011,09210.707472,896
  Bush-workers1,20137151,2537.95521810,980
  Metal3,51115283,6711.159112742
  Stone, clay, glass, &c.2,48866192,5732.1681471,817
  Paper, printing, &c.5214115630.808174805
  Skins, leather, &c.1571611740.511312910
  Mines and quarries17,9832995218,334***
Miscellaneous2631300.139423337
    All groups74,0821,37920775,6683.089§861,453§

ACCIDENT PRONENESS.—In two consecutive years investigation was made as to the total number of individuals suffering accidents in mines as distinct from the total number of mining accidents. It was found that approximately 25 per cent. of those injured were involved in two or more accidents.

EXTENT OF DISABILITY AND LOSS OF EARNING-POWER.-There were 257 cases of permanent physical disability in 1948 in which the extent of the disability could be assessed. Of these, 92 suffered a 5 per cent. or less disability (in most cases the loss of, or loss of the use of, a finger), 79 over 5 per cent. and up to 20 per cent., 64 over 20 per cent. and up to 50 per cent., 19 cases over 50 per cent. and under 100 per cent., and 3 cases of total disability.

Provision is also made in certain cases for the actual impairment of wage-earning capacity to be stated. Of the 299 cases of permanent incapacity in 1948, the question as to what wages the employee would earn on resumption was answered in 103 cases. In 94 of these cases it was reported that though dismemberment or disablement had occurred, no diminution of earning-power had taken place. In 9 cases, however, definite and serious impairment eventuated.

TIME OF OCCURRENCE.—The following tabulation of industrial accidents, according to the hour of occurrence, shows the effects of fatigue during the working-day.

Time of Occurrence to Nearest Hour.Year.Causes, 1944–48.Totals, 1944–48.
1944.*1945.*1946.1947.1948.Machinery.Falls of Persons.Handling Objects.Hand Tools.Other.

* Excluding accidents to forestry-workers and bush-workers.

8 a.m.5014724514795003063506803507172,403
9 a.m.1,2711,2161,3341,3251,4019356182,0491,1901,7556,517
10 a.m.2,1322,0191,9721,9442,1341,2618773,0891,7143,26010,201
11 a.m.2,2212,1212,1682,0322,2111,4159293,2061,8383,36510,753
12 noon1,1131,0111,0841,1161,1507725651,4061,0351,6965,474
1 p.m.6646216276206854873486774321,2733,217
2 p.m.1,6751,4441,6411,6101,6791,1156722,2241,4322,6068,049
3 p.m.1,6191,6381,6601,6141,6371,1587772,4851,4042,3448,163
4 p.m.1,1881,1621,2881,3491,4791,0117032,0751,0621,6156,466
5 p.m.7316446166267054124019515381,0203,322
Other hours1,7011,6221,4991,2151,2328389381,7545283,2117,269
Not stated2422283253594741541045692155861,628
Not applicable4563294584944345611,369397062,171
  Totals15,51414,52715,12314,78315,7219,9207,28322,53411,77724,15475,668

This table indicates that accidents are definitely most numerous during the middle and later part of the morning; there is another peak in mid-afternoon, but this does not reach the same high point.

A more definite indication is given by considering the length of time the employee had worked on the day when the accident occurred.

Number of Hours Already Worked.1944.*1945.*1946.1947.1948.Totals 1944–48.Percentage of all Accidents, 1944–48.

*Excluding accidents to Post and Telegraph employees, forestry-workers, and bush-workers.

Under 17337648477998283,9715.3
1 and under 21,6071,5731,6031,7001,8098,29211.1
2 and under 32,1022,0112,0281,8952,07210,10813.5
3 and under 42,2642,1202,2762,1722,28011,11214.8
4 and under 51,1481,1191,1451,1431,1725,7277.6
5 and under 61,3871,3301,5501,5291,5787,3749.8
6 and under 71,8761,7221,8141,8531,8879,15212.2
7 and under 81,4331,3951,5611,4831,6317,50310.0
8 or over1,1478928119111,0004,7616.3
Not stated1,0449441,0328041,0304,8546.5
Not applicable4513254564944342,1602.9
  Totals15,19214,19515,12314,78315,72175,014100.0

The foregoing tabulation shows that the greatest number of accidents occurred during the third and fourth hours worked in the day. Overtime accidents (eight hours, or more already worked) decreased from 7.6 per cent. of nil accidents in 1944 to 5.4 per cent. of all accidents in 1946, but rose again to 6.4 per cent. in 1948.

Occurrences of accidents during 1948 have also been classified according to the day of the week with the following results.

Industrial Group.Sunday.Monday.Tuesday.Wednesday.Thursday.Friday.Saturday.Not Stated.Total.
Number of Accidents
Factories921,4331,3491,3381,2291,2362876447,608
Public works and State Hydroelectric Department71741691611361362319825
New Zealand Forest Service874686380632742425
Bush-working12120105124105903723616
Scaffolding4273123253288158
Railways62558531452433409200202,665
Post and Telegraph3109845666871317435
Mining1770158855548845892902,989
    Totals2053,1962,9252,7722,5622,51168786315,721
Percentage of All Accidents
Factories1.218.817.717.616.216.23.88.5100.0
Public works and State Hydroelectric Department0.821.120.519.516.516.52.82.3100.0
New Zealand Forest Service1.917.416.014.818.814.86.49.9100.0
Bush-working1.919.517.120.117.114.66.03.7100.0
Scaffolding2.517.119.614.615.820.25.15.1100.0
Railways2.320.919.917.016.315.37.50.8100.0
Post and Telegraph0.725.019.312.915.220.03.03.9100.0
Mining0.623.419.718.616.315.33.13.0100.0
    Totals1.320.318.617.616.316.04.45.5100.0

The general tendency to a Monday peak indicates a certain lack of co-ordination between worker and work on that clay, this being clue no doubt to the week-end break.

Chapter 44. SECTION 44—CONSUMPTION OF COMMODITIES

STATISTICS of consumption cannot be compiled with absolute accuracy, owing to the impossibility of obtaining exact comparability in component statistics of production, exports, and imports. Nevertheless, a sufficient degree of comparability can normally be attained to permit of the compilation of statistics of consumption with a reasonable approach to accuracy. There are several serious deficiencies in the statistical data at present available, the most serious being occasioned by the lack of statistics illustrating the distribution among individuals of the annual flow of commodities entering into consumption.

VALUE OF GOODS AVAILABLE FOR USE.—Statistics of the value of production, of exports, and of imports have been compiled regularly for many years. From these statistics an estimate of the annual value of goods available for New Zealand consumption can be made, the value of exports being deducted from that of production, and the value of imports added to the residuum. The result of this computation gives a close approach to the value of all goods available for use in the country.

Various additional factors have had to be taken into account in preparing estimates covering the war period and quoted in the tables. In some cases rather arbitrary figures have had to be accepted for adjustment purposes. The following descriptive notes under the respective headings will serve to indicate the scope of these estimates.

Production.—The series of value and volume of production figures as quoted in Section 47 of this Year-Book form the basis of the tables which follow. The figures relate to the production year, which, in most cases, approximates closely to the year ended 30th June.

Exports.—The official export figures (f.o.b.) for the years ended 30th June have been adjusted to exclude charges incurred between the stages of production and export.

Goods (normally exported) supplied under the reverse lend-lease procedure, shipments by the Armed Services, and Red Cross and food parcels have all been treated as additional exports in the tables which follow.

Adjustments have been made for changes in stocks awaiting shipment, so that the export figures quoted in this section represent the segment of production in any year exported, or ultimately destined for export.

The volume indices have been adjusted to make allowance for the above-mentioned inclusions.

Imports.—The official import figures (c.i.f.) for the years ended 30th June, excluding ordnance, have been adjusted for the war period to take into account additional freight and insurance charges above the nominal 10 per cent. allowed in the official figures of imports.

Further adjustments have been made for the lump-sum payments received from the United Kingdom Government as a set-off against the high level of import prices, and for the realization on certain war assets.

Unfortunately, detailed statistics of retail and wholesale merchandise stocks are not available, so that the figures illustrate goods available for use and not necessarily goods actually used during each of the years.

The following table gives the position in regard to value of goods, but care should be exercised in interpreting the table in view of the substantial upward trend in unit values that took place over the period covered by the table. In addition to the statistics for the last eleven years, figures for the years 1928–29 and 1932–33 are also given.

Year Ended 30th June,Produced in New Zealand.Imported.All Goods available for Use in New Zealand.
Total.Exported.Available for use in New Zealand.
Total.Per Head.Total.Per Head.

* Provisional.

VALUES
 £(m.)£(m.)£(m.)££(m.)£(m.)£
1929126.254.172.149.246.5118.681.0
193383.735.748.031.325.373.347.8
1939136.158.078.148.356.5134.683.3
1940144.865.879.048.346.1125.176.4
1941160.471.888.654.242.2130.880.0
1942163.871.692.256.541.4133.681.9
1943170.279.790.555.240.8131.380.1
1944175.989.386.652.854.3140.985.8
1945196.7112.684.150.348.7132.879.4
1946200.488.4112.064.757.5169.598.0
1947230.2101.4128.872.388.8217.6122.1
1948266.3120.7145.679.9144.3289.9159.1
1949*292.2122.1170.191.4111.2281.3151.1
VALUE INDEX NUMBERS 1938–39 (= 100)
192993979099828796
193361646063455456
1939100100100100100100100
1940106113101100829392
1941118124113112759796
1942120123118117739998
1943125137116114729896
194412915411110996105103
1945145194108104869995
1946147152143134102126118
1947169175165150157162147
1948196208186165255215191
1949*215211218189197209181

AGGREGATE VOLUME OF GOODS AVAILABLE FOR USE.—Index numbers of volume of total production, based in most cases on figures of actual physical production, and index numbers of volume of exports and of imports, form the basis on which figures indicating the volume of goods available for New Zealand use are estimated. Attention is drawn to the notes on adjustments, &c., applied under the various headings and explained under the preceding title. Quantitative figures of exports are readily available from the official statistics, and as the great bulk of the export trade is confined to a relatively small number of items it is a comparatively simple matter to compile an index number of volume for years ending with the month of June. Prior to the year ended 30th June, 1946, a similar position did not hold in the case of imports, as they are far more diversified in nature, and full detail was not available for other than calendar years. Index numbers of volume of imports for calendar years are compiled, and up to the year 1945–46 an average of the indices for two calendar years was used to approximate years ending with the month of June. Commencing with the year ended 30th June, 1946, a special index number of volume of imports has been compiled. By the use of quantitative figures of production, exports, and imports, reasonably accurate figures of movements in volume may be ascertained, and figures indicating the volume of goods available for New Zealand use arrived at. In the process of compiling an index number of the volume of goods available for New Zealand use, figures of value based on unit values ruling in 1938–39 are used.

Index numbers of volume covering similar years and for similar headings to those given in the earlier table are given below.

INDEX NUMBERS OF VOLUME OF GOODS: BASE 1938–39 (= 100)

Year Ended 30th June,Produced in New Zealand.Imported.All Goods available for use in New Zealand.
Total.Exported.Available for use in New Zealand.
Total.Per Head.Total.Per Head.

* Provisional.

192977747988868291
193383967377506467
1939100100100100100100100
1940105106104103849695
1941113111114112699594
1942110109110110588887
1943109116104103588584
19441081329089668079
19451141568280637472
1946112111113105669387
19471181131211108610696
1948123115129115115123109
1949*129121134116103121105

The low point, both in respect of total and per head volume of goods available for use, was recorded in 1931–32, the decreases from the 1928–29 levels amounting to 26 and 29 per cent. respectively. The 1928–29 level of total volume of consumption was regained in 1935–36, while the per head level was regained in 1936–37.

In conjunction with the previous table, it is interesting to consider the proportions of New-Zealand-produced goods and of imported goods in the total quantum of goods entering into use. Over the period for which the break-up is available, locally produced goods supplied 64 per cent. and imported goods 36 per cent. of the total.

Comparisons in this respect for individual years are given hereunder.

Year.Locally produced. Per Cent.Imported. Per Cent.
1928–295644
1929–305644
1930–316238
1931–326535
1932–336733
1933–346634
1934–356238
1935–365941
1936–375743
1937–385644
1938–395842
1939–406337
1940–417030
1941–427327
1942–437129
1943–446535
1944–456436
1945–467030
1946–476634
1947–486139
1948–496436

While strict accuracy cannot be claimed for these figures—particularly in respect of single years—a definitely higher proportion of New-Zealand-produced goods in the total is observed from 1930–31 to 1934–35 and again from 1939–40 onwards. The falling-off in the volume of imports during the depression years was considerably greater than that for locally produced goods consumed in New Zealand. The policy of import control introduced in December, 1938, and the dictates of a war economy were responsible for the relatively low proportion of imported goods to total consumption evident from 1939–40 onwards.

CONSUMPTION OF NEW ZEALAND PRODUCE.—Statistics of the value of production and of exports render it possible to compute the ratio of internal consumption of New Zealand produce to exports, a feature which is of particular significance to New Zealand in view of its high per caput overseas trade.

It is first necessary to deduct from the production totals (miscellaneous group) the value represented by buildings and by road and railway construction, &c., for these items are not capable of being exported. In order to avoid such fluctuations as are caused by the unequal incidence of price-changes, &c., the aggregate of five years has been adopted. For production, figures have been taken for the production years (terminating at varying dates for different commodities) 1944–45 to 1948–49; for exports the calendar years 1945–49 have been adopted. In addition to recorded exports, an allowance has been made for goods supplied under the reverse lend-lease arrangements, Red Cross parcels, military supplies, &c.

Produce.Consumed in New Zealand. Per Cent.Exported. Per Cent.
Agricultural and pastoral1783
Forest946
Mining8317
Factory and other937
    Totals4654

The term “Factory and other” includes fisheries, factory (added value), and other industrial production; but it should be noted that the output of butter and cheese factories and of meat-freezing works is treated herein under agricultural and pastoral, and not under factory production. Similarly, sawmill output is included with forest produce.

While the statistical data discussed in the foregoing pages afford an indication of movements in the value and volume of consumption of important classes of commodities in the aggregate, considerable interest attaches to the statistics for individual commodities of importance. Estimates of the consumption of a selection of individual commodities are given in the following paragraphs. No indication of the distribution of consumption of these commodities among individual classes of consumers is available; but with the full employment and wide distribution of wealth that prevails in New Zealand it is beyond question that the per caput rates of consumption of various commodities shown later are truly representative of general living standards.

Figures showing, for some of the more important food products in which an export trade is maintained, the respective proportions of the total production in 1948–49 which were consumed in New Zealand and destined for export are as follows:—

 Consumed in New Zealand, Per Cent.Exported. Per Cent.
Butter15.085.0
Cheese5.394.7
Beef56.044.0
Mutton43.057.0
Lamb3.896.2
Pig-meat73.027.0

Local consumption accounted for some 34 per cent. of the total meat production in 1948–49. The proportion of pig-meat consumed locally has increased very considerably in recent years owing to a decline in pig-farming and also to a substantial increase in local consumption. Cheese-consumption also has increased, a noteworthy feature being the growing popularity of processed cheese, which now accounts for about one-third of total cheese-consumption.

PER CAPUT QUANTITIES OF PRINCIPAL FOODSTUFFS AVAILABLE FOR CONSUMPTION.—Estimates of annual consumption for the civilian population have been made for the principal items of foodstuffs for a pre-war period and for the year 1948 or 1948–49. Basic statistical data are rather scanty in the case of some items, particularly fresh vegetables, and the estimates may be subject to correction as further information comes to hand.

Dairy-produce.—Measured in terms of butterfat content, it is estimated that 19.5 per cent. of total dairy production in 1948–49 was used for local human consumption. A further 4.1 per cent. was used locally for calves, pigs, &c., leaving 76.4 per cent. for export in the form of butter, cheese, and processed milk. Estimated figures of annual civilian consumption levels for individual items of dairy-produce, pre-war and for 1948–49 are given below.

 Pro-war.1948–49.

* Available for restricted classes of consumers only.

Whole-milk (pint)220.0330.0
Cream (pint)6.9*
Ice-cream (pint)3.212.0
Cheese (lb.)4.56.4
Butter (lb.)41.030.6
Milk-powder and condensed milk (lb.)5.08.6

In the following comparison of butter and cheese consumption in various countries the figures for countries other than New Zealand have been taken from the 1950 publication “Dairy Produce” issued by the Intelligence Branch of the Commonwealth Economic Committee. The pre-war figures are mostly the average of the years 1934 to 1938; for New Zealand they relate to the immediate pre-war period.

BUTTER AND CHEESE CONSUMPTION PER CAPUT

Butter.Cheese.
Pre-war.1948 or 1948–49.Pre-war.1948 or 1948–49.
 lb.lb.lb.lb.
United Kingdom24.112.58.98.3
Switzerland15.010.617.020.7
Denmark18.37.914.118.5
Netherlands12.311.917.012.1
United States of America16.410.25.87.0
Canada31.928.63.63.6
Argentina3.94.86.210.4
Australia32.624.34.35.1
New Zealand41.030.64.56.4

In considering New Zealand's relatively high consumption of butter it should be noted that the use of margarine as a spread, common in some countries, is unknown in New Zealand.

Meats.—In estimating the average annual civilian consumption of meats an allowance has been made in the case of each item for killings on farms and for condemnations. The consumption levels for the various items are as follows, the weights in each case being on a bone-in dressed carcase basis.

 Pre-war.1948–49.
Beef (lb.)112.0106.1
Veal (lb.)7.56.0
Mutton (lb.)60.063.4
Lamb (lb.)6.58.9
Pork—including chopper meat (lb.)9.010.8
Ham and bacon (lb.)17.023.5
Edible offal (lb.)9.09.0

The following table compares New Zealand's consumption of meat with that of other countries. The figures for other countries are taken from a publication of the Food and Agriculture Organization of the United Nations, which points out that for some countries, owing to unsatisfactory or incomplete statistics, the figures are rough approximations only. Information regarding the Union of Soviet Socialist Republics is not available. Meat in all cases is expressed as the bone-in carcase weight of beef, veal, mutton, lamb, and pig-meat; it also includes edible offal.

As no comparison of meat consumption is complete without a consideration of poultry, the consumption of which is much higher in the United States of America, Canada, Argentina, Australia, and Denmark than in New Zealand, figures are given for both meat, and meat and poultry combined. The pre-war meat consumption is also shown, being the yearly average of 1934 to 1938 for most countries. For New Zealand it is the yearly average of 1937 to 1939, this figure, although not so accurate as recent figures of consumption, being reasonably reliable.

MEAT CONSUMPTION PER CAPUT

Pre-war (Meat Only).1947.*
Meat.Meat and Poultry.

* Poultry figures for most countries represent an estimate for 1946–47 for France and the Netherlands they relate to 1945–46.

† 1948–49.

 lb.lb.lb.
United Kingdom132112116
France907988
Netherlands925153
Denmark123110118
Germany1083535
Norway866265
Sweden959295
United States of America136169193
Canada119125146
Argentina295268277
Australia253198210
New Zealand221228232

It is not surprising that, in general, the highest consumption rates are found in countries with surpluses for export. The United States of America, Canada and New Zealand are the only countries showing rates above pre-war levels.

Fresh Vegetables and Fruits.—Estimates under this heading have been made, particularly in the case of vegetables, with considerable difficulty owing to a number of factors, not the least being the fact that domestic garden production must of necessity be taken into account. Where there is no evidence as to changes in consumption habits, the estimates for both pre-war and 1948 have been treated as on an equality. Consumption levels for individual items are estimated as follows:—

 Pre-war.1948.
Potatoes (lb.)130.0130.0
Kumaras (lb.)7.57.5
Cabbages and greens (lb.)100.0100.0
Carrots (lb.)30.030.0
Tomatoes (lb.)20.020.0
Apples (lb.)44.046.0
Pears and quinces (lb.)6.09.3
Stone-fruits (lb.)12.516.5
Citrus fruits (lb.)23.019.0
Bananas (lb.)21.014.9
Pineapples (lb.)1.00.7

Canned Fruit and Vegetables.—Owing to the lack of satisfactory details for earlier years, the pre-war consumption of these items is shown as the average of 1938 and 1939.

 Pre-war.1949.
Canned fruit (lb.)10.58.9
Canned vegetables (lb.)1.6310.4

Before the war approximately 75 to 80 per cent. of canned fruit requirements was imported and consisted mainly of pineapple, peaches, and apricots. The war considerably upset this trade, but there has been a marked recovery since 1947. With little progress in the local canning of fruit it is not surprising that consumption is still much below the pre-war level.

The consumption of canned vegetables, on the other hand, due in some measure to the striking wartime expansion of the industry, is now at a very high level. Before the war there were some imports of peas and beans, but all requirements are now met from local production. Green peas account for nearly half the production, but there has also been considerable development in asparagus, baked beans, and tomato puree, some of the latter being for export.

Other Foodstuffs.—Estimated annual civilian consumption levels for other items of foodstuffs are given hereunder.

 Pre-war.1948.

*1949.

† Average of 1941–45.

‡ Reserved for Asiatics, ships' stores, and hospitals.

Poultry (lb.)3.94.0
Fresh fish—edible portion (lb.)11.014.1
Shell-fish—edible portion (lb.)0.91.2
Eggs (dozen)20.018.0
Honey (lb.)2.15.7
Refined sugar (lb.)106.0111.3*
Dried peas and beans (lb.)1.63.8
Flour wheaten (lb.)185.0185.0
Cornflour (lb.)2.41.1
Oatmeal, oaten products (lb.)10.57.4
Rice (lb.)5.31.4
Tea (lb.)6.86.7
Cocoa (lb.)1.01.0

Beer, Wine, Spirits, and Tobacco.—As the consumption of these items is particularly susceptible to economic conditions, the depression and immediate post-depression years have been avoided in ascertaining the pre-war consumption. The figures for wine are probably not as accurate as those relating to the other items, for the reason that production figures only are available for locally-made wine which naturally (for maturity purposes) is not usually placed on the market until some years after production. Wine-production has been steadily increasing during the last decade, the 1948 figure being about treble the immediate pre-war output, and accounting for some 60 per cent. of total local consumption.

 Pre-war.1948.
Beer (gallons)10.8017.30
Grape-wine (gallons)0.200.37
Spirits (proof gallons)0.280.21
Tobacco (lb.)3.904.80

In interpreting the big increase in beer-consumption it should not be overlooked that as a war measure the alcoholic strength of beer was, on the 11th May, 1942, reduced by about one-quarter. Although this restriction was removed at the beginning of 1949 the additional duty on beer exceeding the reduced strength has had much the same effect. The supply of certain classes of spirits is inadequate to meet a demand greater than in pre-war years, and there is unofficial rationing by the trade.

Wartime Restrictions on Consumption.—Shortages or prospective shortages of imported goods, brought about or accentuated by the war, created the need for a controlled distribution. The rationing of such domestic produce as meat and butter was necessary to cope with the heavy demands of the Armed Forces, both British and allied, and at the same time to maintain supplies to the United Kingdom.

To ensure an equitable distribution of the more essential commodities, rationing by coupons was introduced for the following items: tea, sugar, butter, meat, household linen, blankets, clothing, and footwear. Eggs were subject to a preference rationing to children under five years of age, expectant mothers, and invalids suffering from specific ailments. Baby wool was reserved for, and rationed to, expectant mothers.

During 1948 rationing was lifted from the following important commodities; tea, 31st May; sugar for domestic use, 27th August; sugar for manufacturing purposes, 29th November; and meat, 27th September. In 1950 all other commodities subject to rationing were freed; cream on 22nd February, butter on 4th June, and motor-spirits on 31st May. As from 7th June, 1950, the operation of the egg priority scheme was left to retailers.

Details of the rationing provisions and other restrictions which applied to the principal commodities were as follows:—

Tea.—The rationing of tea was introduced on 1st June, 1942, with a ration over the whole population (except infants under six months) of 8 oz. per calendar month, but children under ten years of age were eliminated from the scheme on 1st November of the same year. The ration was changed to 2 oz. per week on 1st November, 1943, at which level it remained to the end of rationing. Additional allowances of 4 oz. were granted for each of the following months: December, 1942, and March, April, and December, 1943. Permits were granted for the requirements of collective consumers such as hotels, restaurants, &c., and for morning and afternoon teas for workers in factories, offices, &c. The tea absorbed for these purposes, together with the special allowance for old people presently referred to, accounted for about 18 per cent. of the total consumption in 1947. On 1st August, 1946, persons seventy years of age and over were granted an additional allowance equivalent to 4 lb. per annum. This had the effect of raising the annual per caput consumption from 6.3 lb. in 1945 to 6.4 lb. in 1946, and, with a full year's commitments in 1947 to 6.5 lb. in that year. The difference between the latter rate and the pre-rationing level of 6.8 lb. represented an annual saving of approximately 500,000 lb.

Sugar.—The rationing of sugar commenced on 27th April, 1942, with a ration of 12 oz. per person per week. The basic rate was adjusted to 3 lb. per person per calendar month as from 1st August, 1942; 2½ lb. per person per calendar month as from 1st October, 1942; and back to 3 lb. per person per calendar month as from 1st December, 1942. From 1st November, 1943, to 18th March, 1945, the ration allowance was 3 lb. every four weeks (12 oz. per week), but from 19th March to 30th September, 1945, it was reduced to 10 oz. per week, after which the allowance of 12 oz. was reverted to. Additional allowances per person for jam-making were granted as follows: 1942, 6 lb.; 1943, 12 lb.; 1944, 12 lb.; 1945, 9 lb.; 1946, 9 lb.; 1947, 9 lb.; 1948 (to end of rationing), 6 lb. As for tea, provision was made for the supply of sugar to collective consumers.

The industrial use of sugar was restricted to from 50 to 100 per cent. of the 1941 usage. The application of rationing in this field revealed to what a very great extent the use of sugar is woven into the fabric of industry. Apart from its obvious part in the manufacture of such commodities as cakes and pastry, biscuits and confectionery, jam, preserved fruits, condensed milk, ice-cream, honey, jelly crystals, beer, wine, &c., sugar has many lesser-known ramifications in such activities as meat-canning, bacon and ham curing, the tanning of leather, the manufacture of patent foods of all kinds, of yeast, coffee essence, medicines, tobacco, and even of fly-paper and ant-killer. All these uses, and others, make in the aggregate very considerable demands on the sugar-supply. During the war and post-war period a number of factors operated to increase these demands.

Limited household supplies of sugar (with the short supply of butter an added factor in some instances) restricted home-baking and created a greatly enhanced demand for cakes, pastry goods, biscuits, confectionery, and jam. In addition, certain supplies of some of the foregoing sugar-users which were formerly imported have been replaced by an expanded local production. Further, there is now a higher consumption of patent foods, ice-cream, processed milk, beer, and wine. These are the main factors responsible for a level of consumption now 5 per cent. above the pre-war scale.

Butter.—Butter rationing commenced on 28th October, 1943, with an allowance of 8 oz. per person per week. A further reduction to 6 oz. per week came into operation as from 11th June, 1945, but provision was made whereby expectant mothers and persons seventy years of age and over received 8 oz. per week. As from the 29th October, 1949, the general ration was restored to 8 oz. and was finally abolished as from the 4th June, 1950. Additional allowances of 4 oz. per week were granted to certain classes of workers on account of special working-conditions, and an extra ration allowance was permitted to persons suffering from certain ailments. Manufacturers using butter, and collective consumers, were allowed one-half of the quantities previously used. It is estimated that the 8 oz. per week rationing scale permitted a saving of about 3,500 tons of butter per annum although this figure may be slightly high because of a possible insufficient allowance for the increase in farm-made butter, and also because of the greatly increased use of industrial margarine which may to some extent become a permanent feature of New Zealand's economy.

Cream.—The consumption of cream, as such, was prohibited except for persons suffering from certain ailments, while cream for ice-cream manufacture was limited to one-half of the quantity previously used.

Cheese.—The amount of cheese released by factories for local consumption was subject to regulation by the Food and Rationing Controller.

Margarine.—The use and sale of margarine and other edible fats were limited to the 1945 level. Practically the whole output of margarine is required for industrial purposes, for, in spite of a production more than double the pre-war figure, it is in considerable demand as a butter substitute in the manufacture of biscuits, cakes, &c.

Meat.—The first restrictions on meat applied to pig-meat and arose out of the very considerable requirements, particularly of bacon and ham, of the United States Armed Services in the South Pacific area. As from the 3rd May, 1943, the local consumption of fresh pork, except for limited purposes, was prohibited. In the following month bacon and ham curers were placed on a quota of a certain number of pigs per month. The restrictions on pork were lifted on the 17th December, 1945, although this class of meat remained subject to general meat-rationing until the abolition of the latter in 1948.

The increased requirements of the Armed Services, together with the need for maintaining maximum supplies to the United Kingdom, led to the introduction of general meat-rationing on the 6th March, 1944. Rationing was on a value basis and applied to practically all fresh carcase meat, an exception being mutton skirts. The value of the original adult weekly ration, estimated to purchase on the average 2½ lb. of meat, was fixed at 1s. 9d., increasing to a maximum of 2s. according to seasonal price changes. Children under five years (excluding infants under six months) were allowed half-rations. On the 11th June, 1945, the ration was reduced to 1s. 6d.–1s. 9d. (2 1/7 lb.) per week. With the removal of the meat subsidy on the 29th September, 1947, a corresponding increase was made in the value of the ration to bring it up to 1s. 11d.–2s. 2d. so that it would still yield 2 1/7 lb. of meat.

Additional allowances were granted to certain classes of workers because of special working-conditions, and to persons suffering from certain ailments. Manufacturers (of pies, &c.) were allowed two-thirds of their pre-rationing usages. Canned corned beef and corned mutton were not available for local consumption, except by workers in isolated districts where there was difficulty in obtaining fresh meat. Although there was no restriction on the local sale of canned tongues they were practically unobtainable, for the policy of assuring maximum supplies for the United Kingdom was achieved by price differentiation. A similar policy was adopted for rabbits. There was no restriction on wet packs, that is, mixtures of meat and vegetables. Freezing companies were instructed to limit deliveries of edible offal to the local market to the pre-rationing level. Poultry and fish were not rationed.

Mainly owing to the lack of precise information concerning meat-consumption prior to rationing, it is possible to give only a rough approximation of the saving attributable to rationing. It was probably about 15,000 tons in the last year of rationing.

Eggs.—A scheme of priority egg rationing was introduced in all the principal districts throughout New Zealand on 20th March, 1944. Basically, the scheme guaranteed a minimum of three eggs per week to all children up to the age of five years, and six eggs per week to expectant and nursing mothers. In addition, supplies were available to persons suffering from certain ailments. As from 7th June, 1950, the operation of this scheme was left to retailers.

Clothing, Footwear, and Household Linen.—Rationing of these items was introduced on 29th May, 1942, on a coupon system. Each person was allowed a certain number of coupons for each rationing period, varying coupon values being assigned to the different articles. Special coupons were provided for household linen. The rationing of items mentioned in this paragraph was abolished at the end of 1947.

The items enumerated in this section relate only to food, drink, tobacco, and clothing. Many other commodities are subject to control, probably the most important being the group comprising the numerous building materials and fittings. Oil-fuel and rubber tires were also rationed during the greater part of the war-period. Motor-spirits rationing was abolished on the 1st June, 1946, but was reintroduced on the 1st November, 1947, rationing being left to resellers. This method proved unsatisfactory, and on the 1st March, 1948, the wartime coupon system was reinstituted until the final abolition of motor-spirits rationing on 31st May, 1950.

Chapter 45. SECTION 45—REHABILITATION

THE Rehabilitation Act, 1941, and its amendments make provision for the re-establishment in civil life of discharged servicemen and for the reconstitution of wartime industries on a peacetime basis. The Rehabilitation Department, controlled by the Minister of Rehabilitation, has been set up under the authority of the Act, which also provides for the constitution of a Rehabilitation Board and a National Rehabilitation Council. The principal function of the Council is to make recommendations to the Minister (after investigation) in relation to the re-establishment of discharged servicemen in civil life. Particular matters mentioned in the Act in this regard include the following:—

  1. The reinstatement of discharged servicemen in civil employment or occupation:

  2. The necessary training required to qualify them for entry into civil employment and the granting of financial assistance during such training:

  3. The making of special arrangements concerning the passing of examinations, the completion of apprenticeships, or the obtaining of practical experience, &c.:

  4. The granting of financial assistance to discharged servicemen and to servicemen's widows to enable them to acquire homes and furniture, or to acquire land, stock, implements, tools of trade, &c., to commence any employment or occupation.

The Council consists of the Minister of Rehabilitation as Chairman, the members of the Board, and such other persons as the Governor-General may from time to time appoint. At 31st March, 1950, the total number of members was twenty-five. The Board consists of the Minister as Chairman, the Director of Rehabilitation, the Secretary to the Treasury, the Managing Director of the State Advances Corporation, the Director-General of Lands, the Under-Secretary of Maori Affairs, the Commissioner of Works, and five other persons appointed by the Governor-General. The general functions of the Board are to organize the establishment in civil life of discharged servicemen or servicemen's widows, and to co-ordinate and use the services available in Departments of State and elsewhere for the carrying-out of its functions. The Board also determines the nature and extent of the assistance that may be granted to any class or classes of servicemen, and approves the granting of such assistance.

The Board has the assistance of District Rehabilitation Committees, which keep in touch with discharged servicemen and act in an advisory capacity concerning rehabilitation matters in their respective districts. These Committees investigate and make recommendations in regard to applications for financial assistance or loans, report on the suitability of the applicant for the trade or business for which the assistance is required, and other relevant matters. The Committees also have limited powers in regard to making grants of small sums for immediate assistance, and allocate State rental houses to discharged servicemen, 50 per cent. of all houses becoming available under the Government's housing scheme being allotted for this purpose. The number of Committees operating at 31st March, 1950, was 112.

Other legislative measures for the purpose of rehabilitating discharged servicemen are the Servicemen's Settlement Act, 1950, and the Land Act, 1948, and its amendments. The Servicemen's Settlement Act, 1950, which repealed the former relevant legislation (the Servicemen's Settlement and Land Sales Act, 1943) provides the machinery for the taking of land for discharged servicemen. The Land Amendment Act, 1948, contains provisions which enable the Land Settlement Board to give preference to discharged men at ballots, and also to sell or grant a lease or licence to a discharged serviceman without public notice and without competition. These matters are referred to in more detail in the section of this Year-Book dealing with land tenure and settlement.

TRADE TRAINING.—The “A” Class training scheme provides in a number of the building trades full-time intensive theoretical and practical indoor classes, followed by full-time advanced practical work under the supervision of the Board's Instructors. Full-unit carpentry schools are established at Wellington, Auckland, Gisborne, Hamilton, Christchurch, and Dunedin, and half-units at Kaikohe, Whangarei, Thames, Masterton, Oamaru, Rotorua, Napier, Hastings, Palmerston North, New Plymouth, Wanganui, Nelson, Westport, Timaru, and Invercargill. Although at the peak of the scheme full-time training was in operation at twenty-one centres, applications have tapered off to the extent that it has been necessary to close the Oamaru and Westport centres. The majority of the remaining centres are operating on a reduced basis.

A full centre can provide for the training of twenty-six trainees, and a half-centre fourteen trainees, per class, with three classes per year at each centre. The additional trades of painting, bricklaying, and plastering are taught at Auckland, Wellington, Christchurch, and Dunedin. Painting centres are also established at Hamilton and Palmerston North. Classes in these courses vary as to full complement between twelve and eighteen men.

The recession in the number of men under training can be gauged by comparing the figure of 2,998 at 31st March, 1948, with that of 1,587 at 31st March, 1950. The number of men who completed training from the inception of the scheme to 31st March, 1950, is 5,510.

During their period of advanced practical training, trainees are engaged on the construction of houses under the Government's housing scheme, and from a modest beginning in 1942 the output has increased to the extent that the Rehabilitation Department is now one of the biggest contractors for State houses.

In the earlier stages of the “A” Class training scheme, provision was also made for the training of ex-servicemen in general engineering, welding, and the footwear-manufacturing industry.

The “B” Class scheme of training provides for contracts between employers and trainees and the Board for engagement and training over suitable periods in the employer's own workshop. The wages are subsidized by the Board at a gradually decreasing amount as the training progresses and the trainee's skill and production value increases. Where “A” Class training centre facilities in the trade concerned exist, single men are required to undertake training at such centres, and “B” Class training is confined, in such trades, to married men who would suffer inconvenience by being required to leave home to undertake “A” Class training.

Certain trades such as boot-repairing, watchmaking, jewellery-manufacturing, &c., are particularly suited to the needs of disabled men, and, so far as is reasonably possible, training in such vocations is reserved for ex-servicemen suffering from major disabilities.

Arrangements similar to those in regard to trade training have been made for the training of ex-servicemen with a suitable educational background as clerical workers and in a number of the professions such as law, accountancy, surveying, architecture, and journalism. Following the inclusion in some apprenticeship orders of provision for the daytime technical tuition of apprentices at technical colleges or other approved institutions, the opportunity to do likewise has been given to rehabilitation trade trainees undertaking training in any of the trades concerned.

The following table summarizes the results of the “B” Class training scheme up to 31st March, 1950.

Under Training.Completed Training.Total.
Carpentry trade63185248
Joinery285482
Plumbing117108225
Bricklaying72330
Painting and paperhanging29150179
Plastering165672
Other building trades83038
Clerical and professional103331434
Engineering and metal trades150422572
Electrical trades54184238
Foodstuffs2992121
Footwear and leather trades16159175
Furniture trades65307372
Motor trades88359447
Other mechanical trades153348
Printing trades197998
Retail trades20342362
Roof-tiling246
Textile and clothing trades15150165
Miscellaneous trades30126156
    Totals8743,1944,068

The “C” Class training scheme caters for the resumption of apprenticeships interrupted by war service. The Suspension of Apprenticeship Emergency Regulations 1944 provided that an apprentice on reviving his contract shall receive at least the apprenticeship rate of wages that he would then be receiving had his employment been continuous. If the expiry date of the contract (calculated on the basis of an apprenticeship term of not more than five years) has passed, the employer is called upon to pay the apprentice the final contract rate, and similar payment must be made if the apprentice has reached the age of twenty-one years and has at least twelve months' home service or has rendered military service overseas. Where a contract is revived after the original expiry date (five-year basis) has passed, or where the contract expires after revival, the wage payable is appreciably less than the journeyman's rate which would have been payable had the full contract term been served. As this is an obvious financial hardship arising directly from military service, the Board makes available a subsidy over and above the amount which the regulations require the employer to pay, in order to bring the apprentice's wage up to the journeyman rate. Generally, in the case of twenty-one-year-old apprentices the expiry date of whose contract has not been reached, the Rehabilitation Board makes available a limited subsidy, provided they have had any overseas service. This limited subsidy will normally continue until the apprentice becomes eligible for the full subsidy at the expiry date of the contract. Although these regulations have now been revoked, the rights and privileges of apprentices who had revived their apprenticeships under the regulations are preserved by the Military Training Act, 1949. At 31st March, 1950, 166 ex-servicemen were undergoing training under this scheme, 3,229 had completed their training, and 197 had discontinued training for various reasons.

Disabled Servicemen.—The Disabled Servicemen's Re-establishment League acts as the agent of the Rehabilitation Board in the training of disabled ex-servicemen. Whilst many men who have been disabled as a result of war service have, as a result of medical treatment, been able to return to their pre-service occupations, there are many others who have been obliged to seek a complete change of occupation, and it is largely for this class that the League caters. Vocational training centres are established in several towns and workshops and retail shops for the disposal of the products are operated in connection therewith. The number of men undergoing training with the League at 31st March, 1950, was 109, while up to that date 470 had completed their training.

The Blinded Servicemen's Trust Board has acted as the agent of the Rehabilitation Board in the training and care of those ex-servicemen of the 1939–45 war who lost their sight or suffered serious visual disablement. The number still requiring training has diminished to the extent that at the 31st March, 1950, only 2 men were being trained.

FARM TRAINING AND SETTLEMENT.—Applications for assistance for the purpose of settling on the land are referred in the first place to the local Rehabilitation Committee, which considers whether the applicant is eligible for such assistance. If the Committee decides that the applicant has a claim for assistance, he is referred to an appropriate Farming Sub-committee, thirty-three of which are now operating throughout New Zealand. These Sub-committees then grade the applicants into the following classes:—

  • “A”: Fully experienced and qualified for immediate settlement:

  • “B”: Partly experienced, but in need of further training before settlement would be prudent:

  • “C”: Inexperienced, but suitable for training with a view to ultimate settlement:

  • “D”: Not suitable, for one or more reasons, for settlement:

Men graded “A” require no further training and are eligible for immediate assistance, but “B” and “C” Grade men must undergo prescribed training before they are regraded to “A.” Training measures include—

  1. Training with approved private farmer employers:

  2. Training on blocks being developed by the Lands and Survey Department:

  3. Training at agricultural colleges:

  4. Training for disabled ex-servicemen at the special training-farm established near Palmerston North by the Disabled Servicemen's Re-establishment League.

The Farming Sub-committee is required to nominate the term of training and, where the applicant has been graded “C,” the subsidy rate appropriate to his farming experience. The training of applicants on blocks of land administered by the Lands and Survey Department is an alternative to training with private farmers, and the conditions of employment are the same, the Lands and Survey Department being regarded for this purpose as the employer.

Full-time tuition is provided for student-trainees placed at Canterbury and Massey Agricultural Colleges. The majority of the men selected for these courses have had a background of practical experience, and short courses at the colleges serve a very useful purpose in giving the men an insight into the most up-to-date farming methods.

Full-time training on a special farm is provided for physically disabled ex-servicemen who have a rural background and in respect of whom there are prospects of ultimate successful settlement as farmers, although possibly in a different class of farming from that previously followed. The administration of the farm is in the hands of the Disabled Servicemen's Re-establishment League, while the wages paid to trainees are subsidized by the Board.

The following table shows the number of ex-servicemen settled and the number of ex-servicemen graded “A” awaiting settlement as at 31st March, 1950:—

Class of Settlement.Number.
Settled on single units by Rehabilitation Loans Committee5,609
Settled on land settlement blocks by Rehabilitation Loans Committee1,032
Settled on land settlement blocks, financial adjustments yet to be made357
Employed by Lands and Survey Department with promise of titles290
Settled on single units and blocks through Maori Rehabilitation Finance Committee51
Employed by Department of Maori Affairs on single units and blocks with premise of title17
Settled without rehabilitation assistance on freehold, Crown, and private leasehold properties1,015
Maori ex-servicemen assisted by Department of Maori Affairs under Maori Land Amendment Act, 1936100
    Total settled8,471
Number of “A” Grade ex-servicemen awaiting settlement4,282
    Total graded up to 31st March, 195012,753

The area of land acquired for the settlement of ex-servicemen up to the 31st March, 1950, was 1,046,569 acres. This area does not include particulars relating to those who have purchased established farms on their own account with rehabilitation assistance. Further particulars are contained in pages 293–295. Particulars of financial assistance will be found under a later heading.

Education.—Educational facilities are provided by the Rehabilitation Board for ex-servicemen in the way of bursa payment of fees, book allowance, &c.

Full-time bursaries for study at New Zealand University colleges and some private institutions and colleges include all tuition and examination fees, together with a book allowance limited to £5 per annum. Subsistence allowances for the academic period are also granted at the rate of £6 5s. per week for married men and £3 13s. per week for single bursars. For some courses at the agricultural colleges, students are required to live at the colleges. In such cases their board and lodging are paid, and, in addition, allowances of £4 10s. and £2 per week are paid to married and single men respectively.

Assistance for part-time study at University colleges, State institutions, and private institutions is also given, and consists of tuition and examination fees, plus an allowance for books.

It should be noted that these forms of assistance are granted in relation to career training only and not for purely cultural studies. In deciding the type of bursary and the period for which assistance will be granted, factors such as interruption to study through service, length and type of service in the Armed Forces, relation to pre-service career, and prospects upon qualification and suitability for the particular course of study are all taken into account.

To meet the needs of men who, after a long break on service, experience difficulty in settling down to their studies, the Rehabilitation Board has provided the University colleges with the necessary finance to conduct special extra tutorial classes for ex-servicemen.

In certain cases bursaries are granted to enable an ex-serviceman to pursue a course of study overseas. These are only granted to men with long service and a serious interruption to study or career, or for courses of study which are not available in New Zealand. A full overseas bursary usually includes subsistence allowance at the rate of £328 per annum sterling for married bursars and £250 per annum for single bursars, payable from the time of arrival in the United Kingdom until the earliest date a bursar can obtain a return passage to New Zealand after the completion of his course. Tuition and examination fees, refund for text-books purchased up to £5 per academic year, tourist-class passages from and to New Zealand, voyage allowances at the rate of 16s. 5d. per day for married men and 5s. 3d. per day for single men, and reasonable travelling-expenses in New Zealand and the United Kingdom (from home address in New Zealand to port of embarkation and port of disembarkation to place of study, with similar assistance on the return journey) are also payable.

Particulars of educational facilities granted to 31st March, 1950, are contained in the following table.

Facilities.Ex Overseas.Ex Home Service.Total.
Full-time assistance—   
  (a) In New Zealand3,0901853,275
  (b) Overseas6723675
Part-time assistance12,8802,47215,352
Renewals—   
  (a) Full-time3,3691723,541
  (b) Part-time17,8362,50820,344
Miscellaneous facilities2,8493493,198
    Totals40,6965,68946,385

Children of Deceased or Totally Disabled Servicemen.—In conjunction with the Education Department, the Rehabilitation Board is also concerned with the education of the children of deceased ex-servicemen where death has been the direct result of war injuries and of the children of ex-servicemen who through war disability are totally incapacitated for work. The responsibility for the education of these children through the primary- and secondary-school stages is undertaken by the Education Department. A bursary up to £25 per annum is available to eligible children attending post-primary schools. Assistance for post-secondary education and career training may be granted by the Rehabilitation Board, the assistance taking the form of tuition and examination fees and a contribution towards the cost of books. Where full-time study is approved, a subsistence allowance is payable, varying from £2 10s. per week to £3 13s. per week at the age of twenty-one years. So that due encouragement is given to any children wishing to train for a worth-while trade or career the Board will, where necessary, consider a payment to bring their wages up to £3 13s. net per week where required to live away from home or £2 15s. per week when living at home.

FINANCIAL.—The following is a summary of loan limits and interest-rates applicable to the various types of loan granted by the Rehabilitation Board.

Maximum Amount.Rate of Interest.
 £Per Cent.
(a) Tools of trade50Free
(b) Furniture100Free
(c) Business5004
(d) Farms—  
  Going concerns—  
    Dairy5,0003
    Sheep6,2503
  Stock and plant only—  
    Dairy1,5004
    Sheep or mixed2,5004
(e) House—  
  New2,0003
  Existing1,5003

In the case of business, farm, and house loans the interest-rate for the first year is reduced to 2 per cent. per annum. Supplementary and suspensory interest-free loans are available in the case of housing loans in appropriate cases. Both classes of loan are on a percentage basis. Supplementary loans, which are interest free and repayable only in the event of the sale of the security, amount to 5 per cent. of the reasonable cost with a maximum of £100 in the case of new houses, and for existing dwellings are 5 per cent. of the approved value with a maximum of £75. Suspensory loans, also interest free, relate to new houses only and are cancelled after a period of seven years provided the owner fulfils the required occupancy conditions. They are limited to 10 per cent. of the approved cost with a maximum of £200.

Supplementary loans have also been made available in a number of farm loans, and the Land Amendment Act, 1950, extended the “suspensory” loan principle to cases where an ex-serviceman is settled on Crown land after 1st November, 1950. The suspensory loan in such cases is for an amount not exceeding the difference between the 1942 value and the current market value. Such a loan will not be enforceable as long as the purchaser resides personally on the land and farms it for his own use and benefit and fulfils the conditions of any prior mortgage to the Crown or to the State Advances Corporation.

Provided the purchaser fulfils these conditions the loan is discharged at the end of ten years. These suspensory loans were introduced consequent upon the passing of the Servicemen's Settlement Act, 1950, which provides that the value of land for the purposes of the Act is to be the current market value instead of the 1942 basic value as hitherto.

Special grants may be authorized in cases of hardship, and rehabilitation allowances may also be made.

Particulars of the various classes of loans authorized during the years ended 31st March, 1949 and 1950, and the totals to the 31st March, 1950, are as follows:—

Class of Loan.Year Ended 31st March, 1949.Year Ended 31st March, 1950.Totals to 31st March, 1950.
Number.Amount.Number.Amount.Number.Amount.
  £ £ £
Purchase of farms, &c.9634,372,2059624,888,8826,64128,498,576
Housing loans5,0656,060,5294,4215,200,94429,68035,014,078
Tools of trade1344,848621,8381,38445,492
Furniture8,039746,1017,283678,29243,7514,037,753
Business1,373933,1511,414910,0918,7275,493,961
Miscellaneous457,84810917,43446693,262
    Totals15,61912,124,68214,25111,697,48190,64973,183,122

The next table shows the expenditure of the Rehabilitation Department and loans authorized on rehabilitation for the years ended 31st March, 1949 and 1950, and the total amount to 31st March, 1950.

Item.Year Ended 31st March, 1949.Year Ended 31st March, 1950.Totals to 31st March, 1950.
 £££
Administration expenses349,304342,0172,025,924
Educational facilities, including books, tuition fees, and subsistence allowances316,778190,5621,457,636
Farm training, including fees and subsistence allowances at approved agricultural colleges and training-farms and subsidies to approved employers63,21025,015458,398
Training of blind ex-servicemen17,06413,17181,282
Grants to Disabled Servicemen's Re-establishment League48,51328,327208,638
Land and building for trade training schemes, Disabled Servicemen's Re-establishment League, &c.24,8427,086246,163
Plant and equipment for hostels, &c.761137,981
Purchase and establishment of artificial limb factories5481,49229,181
Special grants to ex-servicemen4,1663,40540,939
Special grants to Returned Services' Association5,5951,75035,606
Therapeutic employment for ex-servicemen6914125,302
Trade training—   
  Centres operated by Rehabilitation Department (includes establishment and operational charges, trainees' wages, separation allowances and travelling-expenses, tools, plant, and equipment)1,159,172994,2524,823,180
  Private firms and Disabled Servicemen's Re-establishment League (includes subsidies to employers and separation allowances)231,61899,6911,356,136
Travelling-expenses of ex-servicemen, including fares, furniture removals, and loss of earnings2,42176642,017
Advertising and publicity3,8583,47621,263
Motor-vehicles, purchased for trade training centres2,1582012,429
Plans and specifications, including plan service552554,039
Tool-store (cost of tools for resale to ex-servicemen tradesmen)35,66715,430150,322
Losses on rehabilitation loans12,2164,73419,811
Small Farms Act leases: Losses and interest concessions  55,327
Rehabilitation allowances75 431,885
Loans (Rehabilitation Loans Committee)12,124,68211,697,48173,183,122
Loans (Maori Rehabilitation Finance Committee)147,68473,011781,150
Purchase of lands for settlement, development, and other expenses in connection therewith4,923,1353,618,45516,968,315
Miscellaneous767715,379
    Totals19,474,35817,120,621102,471,425

Business Assistance for Ex-servicemen.—In addition to the loan facilities available to assist ex-servicemen in purchasing existing businesses, or in establishing new-businesses, special assistance is given to ex-servicemen requiring licences for licensed industries and trades, and also in obtaining stocks, plant, and equipment which may be in short supply, or subject to control.

The following table shows the main classes of businesses for which loans have been granted up to the 31st March, 1950.

Class.Number Granted.Amount.
  £
Butchery188154,427
Grocery, general store616511,484
Bakery, dairy, refreshment-rooms401276,823
Stationery, fancy goods11483,564
Radio-dealer, electrician202109,628
Hairdresser, tobacconist11255,940
Bootmaker14946,222
Chemist2828,230
Manufacturing business291192,288
Eggs, poultry, &c.4226,713
Milk-rounds272216,430
Hotels, guesthouses3935,658
Fishing ventures11173,292
Agricultural contractors428309,641
Taxi, service-car1,652905,135
Transport (general) and mail-contractors1,249925,062
Building and related trades932437,647
Mechanical trades418275,542
Professional services809369,066
Miscellaneous674461,169
      Totals8,7275,493,961

Housing.—Owing to the prevailing housing shortage, the housing of ex-servicemen has been one of the Rehabilitation Board's main problems. Assistance in this connection consists of a certain priority in the allocation of State rental houses, and provision of finance for the erection of new, and the purchase of existing, dwellings.

During the year ended 31st March, 1950, 1,946 State rental houses and flats were allocated to ex-servicemen compared with a total of 2,014 in the previous year, making a total allocation to the 31st March, 1950, of 12,202.

The number of loan authorizations for the erection of new homes during the years ended 31st March, 1949 and 1950, was 2,355 and 1,886 respectively making a total of 12,562 to 31st March, 1950.

Loans for the purchase of existing dwellings were authorized in 2,710 cases in 1948–49 and 2,535 cases in 1949–50, while the total to the end of the latter year was 17,118.

DEMOBILIZATION.—Demobilizations as recorded by the Rehabilitation Department are shown in the following table:—

Year Ended 31st March,Demobilization.
For Year.Total to Date.
194319,29419,294
194423,36242,656
194526,01968,675
194682,725151,400
194731,110182,510
194819,755202,265
19496,896209,161
19501,657210,818

MAORI REHABILITATION.—The following table gives particulars of assistance afforded to Maori ex-servicemen up to 31st March, 1950. Maoris are entitled to the same assistance and under the same general conditions as Europeans, although special measures have been introduced to meet their particular needs. At 31st March, 1950, 5,196 Maori ex-servicemen had been demobilized, of whom 3,855 had served overseas.

Type of Assistance.Number of Ex-servicemen.Amount Authorized.
  £
Farm-land purchased 92,951
Farm loans89274,775
Housing loans513573,463
Furniture loans84179,283
Business loans18088,535
Tools-of-trade loans622,004
Miscellaneous loans and grants568,093
    Totals1,7411,119,104
Educational assistance127 
Trade training—  
  “A” Class640 
  “B” Class46 
  “C” Class8 
  “D” Class50 
  “F” Class3 
    Total, trade training747 
Farm training197 
    Total number assisted2,812 

In addition, 100 ex-servicemen have been settled on farms under the Maori Land Amendment Act, 1936, and 36 ex-servicemen have received housing assistance under the Maori Housing Act, 1935.

Chapter 46. SECTION 46—ISLAND TERRITORIES

ADMINISTRATION.—New Zealand's first administrative responsibility in respect of areas in the South Pacific was accepted in 1901 when the Cook Islands were brought within the boundaries of New Zealand. In 1902 a Minister in Charge of the Cook Islands was appointed and the Cook Islands Department was formed. In 1920 New Zealand was granted a mandate over the Territory of Western Samoa, and the Samoa Act, 1921, provided for the appointment of a Minister and a Department of External Affairs. The staffs of the Cook Islands and the External Affairs Departments were combined, but during some periods there were separate Ministers in charge of each of the main island groups.

Under the External Affairs Act, 1943, the Department of External Affairs became responsible for the direction of New Zealand's foreign affairs, including its offices in other Commonwealth countries, while the Department of Island Territories created under the Island Territories Act, 1943, assumed the administration of all island territories.

On 1st January, 1949, the Tokelau Group, which since 1925 had been administered by New Zealand on behalf of the United Kingdom Government, became part of New Zealand and was placed under the general direction of the Department of Island Territories, although actually administered by the High Commissioner of Western Samoa.

The Chatham Islands, which comprise one of the 129 counties of New Zealand, have had their development seriously retarded by reason of their isolation and consequent lack of direct contact with the mainland. In order to assist in overcoming the disabilities suffered by the people of the Chatham Islands, and to promote the general welfare and development of the islands, the Government, in December, 1949, placed their general administration under the Department of Island Territories. A Resident Commissioner, who is responsible for co-ordination of all Government activities in the islands has been appointed. This officer also acts as Resident Magistrate.

Besides the various island groups, the Department directly controls the operations of the New Zealand Government m.v. “Maui Pomare,” and administers, through a General Manager, the New Zealand Reparation Estates in Western Samoa. It is also associated with the South Pacific Commission and the South Pacific Health Service.

The Officer for Islands Education is responsible under the Department for the co-ordination of educational policies in the various groups, the appointment of New Zealand teachers on secondment, the publication of School Journals in the vernacular of the different groups, and the supply of modern teaching equipment. An islands scholarship scheme instituted in 1945, under which selected students from all territories are given secondary and higher education in New Zealand, is under the Department's direction.

By arrangement between the Governments of Fiji and New Zealand, young Samoans, Cook Islanders, and Niueans receive training over a period of four years at the Central Medical School, Suva, Fiji, to equip them for duty as assistant medical practitioners in their own territories. At 31st March, 1950, there were 26 of these students at the school, made up of 17 from Western Samoa, 5 from the Cook Islands, and 4 from Niue.

New Zealand also exercises the administration of the Ross Dependency on behalf of the United Kingdom Government. The Ross Dependency is uninhabited. Brief mention is also made in this section to Nauru, which is administered under a trusteeship, held jointly by the United Kingdom Government, the Government of Australia, and the New Zealand Government.

The term “island territories” does not include Stewart Island or the Chatham Islands, which form part of New Zealand, although, as mentioned earlier, the latter have been placed under the administrative direction of the Department of Island Territories. The following minor islands, which are referred to on page 2 of this Year-Book, are also excluded: Three Kings Islands, Auckland Islands, Campbell Island, Antipodes Islands, Bounty Islands, Snares Islands, and Solander Island. None of these islands is regularly inhabited, although meteorological stations were established on the Auckland and Campbell Islands in 1940. The station in the Auckland group was closed in June, 1945, but a small staff is still engaged on Campbell Island maintaining meteorological records and conducting ionospheric research. A radio station is also established on Campbell Island. The Kermadec Islands are also excluded, for, although they are in the same category as the Cook Islands in that originally ranked as “annexed” islands all New Zealand laws extend to them and there is no separate administration. A meteorological station and an aeradio station have been established on Raoul Island, and there is also a post office with a European postmaster. The population, including the official staff of Raoul Island at 30th September, 1950, numbered 14. This is the only island of the Kermadec group that is inhabited.

COOK ISLANDS.—Descriptive—The Cook Islands were proclaimed a British Protectorate in 1888, and on 11th June, 1901, they were annexed and proclaimed part of New Zealand under the Colonial Boundaries Act, 1895. In considering the islands within the territory, a distinction can be made between the scattered islands in the north and the islands towards the south forming the Cook Group proper. Niue, though one of the Cook Islands, has been under separate administration since 1903, and data relating to it are given later in this section. Not including Niue, there are fifteen islands in the proclaimed territory, scattered over an area of some 850,000 square miles, and extending from Penrhyn, situated 9 degrees south of the Equator, to Mangaia, which is just north of the Tropic of Capricorn. The Cook Islands are bounded on the west and east by the 167th and 156th meridians of west longitude respectively, and on the north and south by the 8th and 23rd parallels of south latitude. The total land area of the fifteen islands is a little under 100 square miles, while Niue has an area slightly in excess of that figure.

Some of the islands of the Cook (Lower) Group were discovered in 1773 by Captain Cook who first touched at Manuae. Rarotonga, Mauke, and Mitiaro, however, were not recorded by Europeans until 1823 when the Rev. John Williams of the London Missionary Society located them.

Of the islands of the Cook (Lower) Group, Rarotonga, Aitutaki, Atiu, Mitiaro, Mauke, and Mangaia are elevated and fertile, while Manuae and Takutea and the islands of the Northern Group comprising Penrhyn, Manihiki, Rakahanga, Pukapuka, Palmerston, Nassau, and Suwarrow are sea-level coral atolls. As a consequence the southern islands support the greater population. With one exception, none of the islands possesses a good harbour.

The whole of the Cook Islands lie within the hurricane zone, and a number of destructive storms have been experienced, the most serious of which in recent years occurred in March, 1943, and in January, 1946. The whole area of the Cook Islands is now covered by a meteorological service with headquarters in Fiji, and advance warning of the intensity and path of tropical storms is available and enables precautions to be taken to protect life and property. From December to March the climate is warm and humid, and there is always the possibility of serious storms. In the remaining months of the year the climate of the Cook (Lower) Group is mild and equable. The mean annual temperature in Rarotonga taken over the last forty years was 74.5° Fahrenheit, and the average yearly rainfall over the same period was 84 inches.

Rarotonga, the seat of the Cook Islands Administration, is well watered by creeks and streams, and all villages are supplied with water by means of a reticulation system. The other islands, both southern and northern, suffer from lack of streams and wells, but water is provided from public tanks, the number of which is being steadily increased.

Following is a brief description of the individual islands.

COOK (LOWER) GROUP.—Rarotonga (16,500 acres), the most fertile island of the territory, rises to a height of 2,110 ft. It is clothed to the tops of the mountains with splendid vegetation, and has abundant streams, considerable tracts of sloping land, and rich alluvial valleys. The town of Avarua is the centre of the local administration and is 1,633 miles from Auckland. An airfield is in use.

Mangaia (17,500 acres, 110 miles from Rarotonga) is the south-easternmost of the Group. Mangaia is not as fertile as Rarotonga, but produces large quantities of coconuts, bananas, oranges, limes, other citrus fruits, &c. Mangaia is of volcanic origin and is surrounded by a barrier reef without passages. From a narrow sandy beach, the shore rises in high cliffs to a mile-wide plateau which descends again to almost sea-level, enclosing an ancient crater holding several volcanic mounds, the highest of which exceeds 550 ft. The crater drains by subterranean channels.

Atiu (6,950 acres, 116 miles from Rarotonga) resembles Mangaia in formation. It is a raised mass of coral, steep and rugged, except where there are small sandy beaches and some clefts. On the highest point of the central ridge coconuts, bananas, oranges, and coffee grow with the utmost luxuriance; and the kumara, one of the most valuable of South Sea vegetables, yields large crops.

Mauke (4,600 acres, 150 miles from Rarotonga) is a low circular island about two miles across, lying to the north-east of Rarotonga. Like Mangaia and Atiu, it is surrounded by an unbroken fringing reef. Mauke is very fertile.

Aitutaki (3,900 acres, 140 miles from Rarotonga) is about eighteen miles in circuit and one of the most fertile of the islands forming the Cook (Lower) Group. It also has an airfield.

Mitiaro (2,500 acres, 142 miles from Rarotonga) is a good example of an elevated coral reef, thinly coated with sand and gravel of the same material. The greater part of the surface if not more than 6 ft. above high-water mark.

Manuae (1,524 acres, 124 miles from Rarotonga), consists of two small islands, Manuae and Te-Au-o-Tu, joined by a coral reef. The two islands are in general usage covered by the term Manuae; the name Hervey Islands is an alternative but rarely used title.

Takutea (302 acres, 118 miles from Rarotonga) is a small coral island, moderately fertile, but is not regularly inhabited.

NORTHERN ISLANDS.—Penrhyn (2,432 acres, 737 miles from Rarotonga) is also known as Tongareva. The large lagoon with its two entrances affords the only land-locked shelter within the group for vessels other than fishing-boats, and it is the refuge of trading schooners during the hurricane season. As drought conditions sometimes exist, large concrete tanks have been built for the conservation of rain-water.

Manihiki (1,250 acres, 650 miles from Rarotonga) is an atoll about thirty miles in circumference, valuable for the extent of its coconut groves. It also suffers on occasions from droughts, and is equipped with concrete water-tanks.

Pukapuka (1,250 acres, 715 miles from Rarotonga) is a small triangular-shaped atoll of about 3 miles in diameter, with its highest point about 150 ft. above sea-level. The legendary history of its settlement is interesting through its New Zealand associations. It is stated that one of the Maori chiefs who came to New Zealand with the first migratory wave of the Maoris (as distinct from the Morioris or earlier settlers) decided to return with his immediate followers to Rarotonga. Winds took them out of their course, and they finally reached and settled in Pukapuka. The people of this island have somewhat different customs from those of the remainder of the group. A portion of one of the reef islets, known as Anchorage Island, is an Admiralty Reserve.

Rakahanga (1,000 acres, 674 miles from Rarotonga) is also an atoll, and shares its Resident Agent with Manihiki, from which it is only twenty-five miles distant.

Palmerston (1,000 acres, 270 miles from Rarotonga) consists of eight islets threaded along a reef. Palmerston also bears the name of Avarau, and is noted as the “San Pablo” of Magellan, the first island discovered in the South Seas.

Suwarrow (600 acres, 513 miles from Rarotonga) is a coral atoll of triangular form possessing a land-locked lagoon eight miles by six, which is capable of being made into an excellent harbour. The island, which has been much reduced in land area by storms, is a sanctuary for sea birds, and part of it is a naval reserve.

Nassau (300 acres, 673 miles from Rarotonga) is a small island well planted with coconut-trees. It is usually inhabited for part of the year only.

Administration.—Provision for the government of the Cook Islands is contained in the Cook Islands Act, 1915. Under this Act there is appointed a Resident Commissioner charged with the administration of the executive government of the Cook Islands. The Resident Commissioner resides in Rarotonga and is represented in the outer islands by Resident Agents.

Popular representation is effected by the Island Council in each of the ten main islands, each Council consisting of ex officio members (officials and arikis, or leading chiefs) and elected members. Elections were first held in March, 1947, and will henceforth be conducted triennially in each constituency, the franchise extending to all Cook Island Maoris of eighteen years of age or over. The Maoris are British subjects and the provisions of the British Nationality and New Zealand Citizenship Act, 1948, apply to them. The Resident Commissioner in Rarotonga and the Resident Agents in the outlying islands preside over the respective Island Councils. Prior to 1947, the Island Councils consisted of the Resident Commissioner or Resident Agent, the arikis, and a number of nominated members.

Europeans are represented by one elected member on the Rarotonga Island Council.

The Cook Islands Amendment Act, 1946, under which these Island Councils were reconstituted, also provided for a Legislative Council of the Cook Islands, the inaugural session of which commenced on 5th November, 1947. This Legislative Council consists of ten unofficial members elected by the Island Councils and ten official members of the Cook Islands Public Service appointed by the Governor-General, with the Resident Commissioner as President. At meetings of this Council the Resident Commissioner has a casting, but not a deliberative, vote.

Laws governing the Cook Islands are made by Act of the New Zealand Parliament or by Orders in Council and regulations issued thereunder. Ordinances applicable to the whole of the Cook Islands may be made by the Legislative Council of the Cook Islands, subject to certain statutory restrictions. These Ordinances require the assent of the Resident Commissioner, and may be disallowed either wholly or in part by the Governor-General within one year after the assent of the Resident Commissioner has been given. Ordinances restricted in their application to the islands in which they are made, may be enacted by the local Island Councils. These local Ordinances require the consent of the Resident Commissioner, or they may be reserved for the Governor-General's pleasure.

The Cook Islands have been brought within the scope of the South Pacific Board of Health, which was established in September, 1946, by agreement between the Government of New Zealand, the Government of Fiji, and the Western Pacific High Commission. The functions of the Board, the headquarters of which are in Suva, are to assist and advise the participating administrations on all health matters affecting the territories under their control.

A Conference convened by the Governments of Australia and New Zealand, and at which the Governments of France, the Netherlands, the United Kingdom, and the United States of America were represented, was held at Canberra in January and February, 1947. This Conference prepared an agreement establishing a South Pacific Commission, and steady progress has been made towards the realization of its aims. The broad objective of the Commission is the economic and social advancement of all the island peoples of the South Pacific and the prosecution of scientific research under a wide common plan of regional co-operation, and many particular projects of vital interest to the people of the Cook Islands are already envisaged.

Population and Vital Statistics.—The Cook Island Maori is a Polynesian and is closely related to the New Zealand Maori. There is a strong resemblance between the two peoples in tradition, language, and custom. Many of the tribes in both places are able to trace their descent back to a common ancestor. A census of the Cook Islands taken on 25th September, 1945, recorded a total population (exclusive of Niue) of 14,088, an increase of 1,842, or 15.04 per cent., as compared with the census of 30th April, 1936. The Cook Island Maori population increased from 11,943 to 13,574 and the remainder of the population from 303 to 514. Of this remainder approximately two-thirds were recorded as being partly of Maori origin, and the increase between 1936 and 1945 is confined to those of mixed blood, the number of persons described as “Europeans” having fallen from 207 to 180. Details of the estimated population of the islands of the group as at 31st March, 1950, together with corresponding totals shown by the 1936 and 1945 censuses, are set out in the following table:—

Island.Estimated Population, 31st March, 1950.Census of 1945: Total Population.Census of 1936: Total Population.
Indigenous Population.Non-Indigenous Population.Total Population.
Males.Females.Males.Females.

* Not inhabited at time of 1945 census.

† Not inhabited at time of 1936 census.

Northern Group—       
Penrhyn3823442 728654467
Rakahanga1741591 334318290
Manihiki2342482 484435487
Pukapuka34634241693662651
Nassau*      18
Suwarrow3   35 
Palmerston3636  726590
Cook (Lower) Group—       
Aitutaki1,3471,2891192,6562,3561,719
Manuae29101 40288
Takutea*       
Mitiaro119134  253229265
Atiu673622421,3011,1141,086
Mauke36245742825804652
Rarotonga2,7982,631167885,6845,5735,054
Mangaia948996951,9581,8451,459
Totals, Cook Islands7,4517,26820510715,03114,08812,246

During the year ended 31st March, 1950, births numbered 621 and deaths 301, as compared with 648 and 251 respectively in 1948–49. The number of deaths of infants under one year of age in 1949–50 was 70, as compared with 66 in the previous year.

Health.—In accordance with the provisions of the Cook Islands Act, 1915, all Cook Islanders receive free medical and surgical treatment in their villages, in the hospital, and in the tuberculosis sanatorium. Cook Island Maori patients in the hospital and the sanatorium and all school-children receive free dental treatment.

Although lying within the tropics, the Cook Islands are singularly free from the common diseases prevalent in other tropical islands. Malaria is also unknown, but filariasis is endemic, and this and tuberculosis provide the main health problems of the Group. The objective of the health services, to improve the health of the community, is being pursued by a system village sanitary inspection and group medical examination, combined with modern treatment of disease in dispensary, clinic, hospital, and sanatorium.

The health services are headed by a Chief Medical Officer, and include eight Assistant Medical Practitioners (Maori), and fifteen Maori Inspectors engaged on mosquito-control. Hospital and sanatorium staff include two European Matrons, three European Sisters, and a number of trained Maori nurses.

A general hospital (50-bed) equipped with dispensary, X-ray, and laboratory facilities and a tuberculosis sanatorium (30-bed) are maintained in Rarotonga, the latter, which was provided by the New Zealand Government, being opened in December, 1945. In the outer islands, dispensaries with accommodation for a few patients are operated by Assistant Medical Practitioners.

A child-welfare organization covering all phases of maternity and child-welfare work operates in Rarotonga, Mangaia and Aitutaki under the supervision of the Chief Medical Officer. Regular clinics are held and periodical lectures are given to the Child Welfare Committees in each village.

The Dental Department is operated by a European Dental Officer and two trained Maori dental nurses and five trainees (for eventual posting to their home islands as Dental Officers) from the outer islands. During the year ended 31st March, 1950, all schools in the Lower Group of islands were visited and the children examined, and, in practically every school, treatment over a period was given. Dental health education has commenced by the issue of pamphlets in Maori and English.

Expenditure on health services during the financial year ended 31st March, 1950, amounted to £44,777, or £2 19s. 7d. per head of population.

Education.—The work of the Education Department is in charge of an Education Officer seconded from New Zealand, assisted by thirteen European teachers, also from New Zealand, and by 173 local teachers and trainees. There are eleven Government schools established in live islands of the Cook (Lower) Group and at Pukapuka, the London Missionary Society has a school at Mitiaro and six in the Northern Group, while there are three Roman Catholic schools in the Cook (Lower) Group and three in the Northern. Subsidies are paid to the London Missionary Society to assist education in the Northern Group. The number of scholars attending schools in 1949 was 4,046, of whom 3,298 attended Government schools, 373 London Missionary Society schools, and 375 Roman Catholic schools. The aim of the Administration is to educate the children up to the equivalent of Standard 4 of the New Zealand school syllabus, with facilities at Rarotonga for advanced children to attain a level comparable to lower forms of New Zealand secondary schools. Land has been acquired and plans finalized for a post-primary school at Tereora, Rarotonga. Pending the construction of the building a special class for the 1950 school year was assembled in February. This class, consisting of twenty-four pupils under fifteen years of age selected from the various schools of the Lower Group, is at present accommodated at Avarua School. A limited number of pupils is sent to New Zealand each year to take up scholarships made available by the New Zealand Government.

Social studies have been added to the school curriculum, and instruction in the Cook Islands Maori language is now given for one hour per week. Three text-books in the Cook Island Maori language are in use, and as more become available the weekly period of instruction will be increased. It is planned to publish six numbers of a special School Journal in the Cook Island Maori language each year, and the first issue appeared in December, 1949. Five film-strip projectors, one movie-sound film-projector, and a considerable quantity of other material and apparatus have been made available from a special grant provided by the New Zealand Government. A scheme for the provision of free milk for the children in Rarotonga schools is in operation and will be extended to the schools of the outer islands as soon as possible.

Labour and Employment.—There is wide variation in types of employment in the different islands. On the barren atolls in the Northern Group the island people subsist largely on coconuts and fish, and there is little opportunity for them to engage in other pursuits which would provide exports and a consequent higher living standard. In the islands of Manihiki and Penrhyn pearl-diving is carried out under regulations which restrict this employment to Polynesians, and otherwise decide the depth of water governing the use of diving equipment, areas to be fished, &c. It is in the fertile islands of the Cook (Lower) Group that most of the population is concentrated, and labour is required for the growing, harvesting, packing, and shipment of fruit and copra, the staple exports on which living standards depend. As most of the land in these islands is held by family groups under customary title, the bulk of the people are engaged in work on their own plantations. There is, however, opportunity for wage-earners in the administrative departments, in plantation work, and in the handling of fruit for export. On Rarotonga a small but busy secondary industry manufactures clothing and footwear.

Wage standards are fixed for all types of such work following the sittings of a special Wages Tribunal in 1946. Further progress in the field of employment relations was initiated by the passing of the Cook Islands Industrial Union Regulations 1947, resulting in the registration of the Cook Islands (Except Niue) Industrial Union of Workers. This union embraces all classes of workers, many being engaged in different kinds of employment from time to time according to the labour demand.

Provision is made for the settlement of industrial disputes by conciliation or, failing voluntary settlement, by decision of an Industrial Relations Officer appointed from the Cook Islands Public Service. Appeal from such a decision is to an Industrial Magistrate appointed by the Minister of Island Territories for the purpose.

Basic wage-rates for labourers range from 7s. to 9s. per day, and for more responsible work up to 18s. per day.

Labour is recruited by the French Phosphate Company of Oceania to work the phosphate deposits at Makatea, in the Society Islands. Individual labourers are recruited on single-year contracts and are given medical examinations both before and after their term of employment, during which they are required to make allotments from their wages either to their dependants or to their savings-bank accounts. The work is relatively highly paid, and many workers seek re-employment on the termination of their contracts. At 31st March, 1950, there were 309 of these labourers employed at Makatea.

There is no movement of migratory labour into the Cook Islands, although some migration occurs from the less-fertile islands of the Northern Group to Rarotonga and other islands of the Cook (Lower) Group.

A number of Cook Island Maoris, principally females, go to New Zealand to do domestic service or to learn trades. This migration is under supervision, and persons desiring to leave the islands are subject to examination for health and character.

Agriculture.—The principal crops of the Cook Islands, apart from island vegetable crops, are citrus fruits, bananas, tomatoes, and coconuts, while arrowroot and pineapples are also grown. Some years ago deterioration of the orange-trees became increasingly evident and in order to rehabilitate the industry a citrus-replanting scheme was instituted in 1940, providing for assistance to growers in establishing plots. Considerable progress has been made with this scheme, particularly in its revised form. Nurseries are established in Rarotonga, Aitutaki, Mauke, and Atiu. Owing to lack of shipping facilities and storm damage the production of bananas has declined in recent years, but at present attempts are being made to interest growers in rejuvenating the industry. The Administration has maintained nurseries for the propagation of banana-shoots which are distributed to growers for planting. Arrowroot is extensively cultivated in Aitutaki, while Mangaia shipped 1,333 cases of pineapples to New Zealand in 1949. The extension of these industries may well assist in providing cargo during the lean period between orange seasons. Copra production has increased, and Penrhyn and Aitutaki have recommenced the export of this commodity.

A census of live-stock was to be carried out in the Group during 1950, but the results are not yet available In the absence of more comprehensive figures the following particulars of live-stock in Rarotonga may be of interest: horses, 1,873; cattle, 376; pigs, 2,512; goats, 943.

There are few marketable typos of forest trees in the islands, but arrangements are being made for tree-planting on a moderate scale to prevent soil erosion.

Communication.—For trading connections with other countries the islands are mainly dependent on a steamer service to and from New Zealand. By this service regular calls are made at Rarotonga, and occasional calls, for purposes of loading cargoes in the orange season, at the larger and more productive of the southern islands. Transportation between the islands is mainly undertaken by launches and schooners. There is a regular fortnightly air service between New Zealand and Rarotonga which has effected a great improvement in communications and has proved of much value in cases of emergency and of medical necessity. Passengers proceed from Auckland to Fiji, and thence via Tonga, Western Samoa, and Aitutaki to Rarotonga, the air journey from New Zealand taking four days, including a break of one day in Fiji. The return journey follows a similar schedule. The only islands in the Group connected by this air service are Rarotonga and Aitutaki. A French air service between New Caledonia and Tahiti has also made calls at Aitutaki during the year.

Radio communication has largely removed the former isolation of the islands, there being now no permanently inhabited island without a radio-station. The chief station is Rarotonga Radio, which maintains direct communication with the sub-stations and with Wellington, Apia, and Suva. Postal and telegraph services are available in all the islands and there is a telephone service in Rarotonga.

Trade.—A summary of exports by country of destination and imports by country of origin for each of the last five calendar years is contained in the next table.

1945.1946.1947.1948.1949.
Exports, by Country of Destination
 £££££
New Zealand100,62993,817149,323155,584165,033
Australia1,1721,2546,951  
United States of America2,88312,56524551448,903
Other countries1,5626262,006 84
    Totals106,216108,262158,525156,098214,020
Imports, by Country of Origin
 £££££
New Zealand123,245157,870201,769226,427212,329
Australia3,7135,6525,3018,2087,845
United Kingdom11,69318,50423,64748,81468,510
Canada1351,1912,7432,8726,818
United States of America2,8768,03716,5017,35311,590
Other countries2,4084,3423,2826,1758,445
    Totals144,070195,596253,243299,849315,537

The New Zealand Customs tariff applies to the Cook Islands with additional special duties on sugar, cotton piece-goods (except calico), linen piece-goods, piece-goods of mixed linen and cotton, and black twist tobacco. During the war period, import, finance, and price controls were instituted and have been kept in force. Import licences are required for certain goods imported from New Zealand and for all goods imported from other countries. A contract has been concluded with the United Kingdom Ministry of Food for the sale of copra produced in the Group. The contract, which is for a period of nine years, will have a stabilizing effect on the Group's economy.

Details of the quantities and values of the principal commodities exported in 1948 and 1949 are as follows:—

Commodity.Unit.Quantity.Value.
1948.1949.1948.1949.
    ££
Oranges and other citrus fruitsCase38,82766,88836,86456,460
BananasCase38 19 
TomatoesBox61,29022,39023,46915,485
CopraTon1,16898857,93347,608
Handicrafts, grassware   654 
ArrowrootTon76184,665616
Manufactured goods   11,32827,464
Pearl-shellTon11428813,94148,903
Candle-nutsCase171 2,562 
PineapplesCase6001,333433900

Public Finance.—To meet expenditure, revenue is raised in the Cook Islands themselves, and the principal sources at present are receipts from stamp sales, customs import duties, and income-tax paid by taxpayers resident in the Group. Apart from income-tax which may be payable in some cases, there is no direct taxation of the Maori community.

Subsidies to cover the deficit on ordinary working are granted annually by the New Zealand Government, and also in recent years special grants have been made for particular purposes, mainly of a capital or developmental nature.

A comparative statement of revenue and expenditure for the last five years is shown hereunder.

Year.Revenue.Expenditure.Deficit.Subsidies and Grants.Final Surplus or Deficit.

* Exclusive of £27,814 for electric-power scheme.

 £££££
1945–4649,33793,01743,68043,669− 11
1946–4773,999107,53035,53118,313− 15,218
1947–4878,773147,10668,33370,991*+ 2,658
1948–4985,822207,302121,369100,249− 21,120
1949–50131,281259,806128,525155,514+ 26,989

Of the revenue in 1949–50, import duties produced £36,531; income-tax, £17,800; and stamp sales, £19,960.

Details of subsidies and grants from New Zealand for the 1948–49 year follow; corresponding figures for the allocation of subsidies for previous years may be found in the 1947–49 issue of the Year-Book on page 816.

 £
General72,590
New works1,773
School milk scheme1,651
Scholarships2,352
New vehicles700
Telephone system2,470
Native Appellate Court436
Police party3,000
Fairmile launch1,225
Radio reconstruction13,220
Water tanks425
Pensions407
    Total£100,249

The principal items of expenditure in 1949–50 were £42,221 on education, £44,777 on health services, and £35,204 on public works. More detailed information in respect of the Cook Islands and Niue Island will be found in parliamentary paper A-3 for the year ended 31st March, 1950.

NIUE.—Descriptive—Niue Island became part of New Zealand in 1901, when the boundaries of New Zealand were extended to include the Cook Islands. As stated previously, Niue is part of the Cook Islands but has been under separate administration since 1903. The island is situated in latitude 19° 10' south and longitude 169° 46' west, somewhat west of the centre of the irregular triangle formed by Samoa, Tonga, and the southern Cook Islands, and is 600 miles distant from the latter. The island, which has an area of 64,028 acres, is an elevated coral outcrop with a coral reef fringing a precipitous and broken coast-line. The central saucer-shaped plateau, rising to a height of 220 ft., is encircled by a narrow terrace about 90 ft. above sea-level. There are no running streams, and the water supply depends on rain-water, which is stored in tanks. The soil, though fertile, is not plentiful, and this feature, combined with the rocky and broken nature of the country, makes cultivation difficult and precludes the grazing of stock. The climate is mild and equable, and, although on the edge of the hurricane belt, the island is seldom visited by serious weather disturbances. The mean annual temperature during the last thirty years was 76.6° Fahrenheit, and the average annual rain-fall for a similar period was 79.0 inches.

The port of Alofi has an open roadstead anchorage which is satisfactory in fair weather.

Administration.—Provision for the administration of Niue is made in the Cook Islands Act, 1916, which provides for the appointment of a Resident Commissioner charged with the administration of the executive government of Niue. Laws are made by Act of the New Zealand Parliament, or regulations issued thereunder, or by Ordinance passed by the local Island Council. This body meets periodically under the presidency of the Resident Commissioner, and consists at present of thirteen Niuean members appointed by the Governor-General, and representing all villages on the Island.

Population.—The Niuean is of Polynesian stock and the language a Polynesian dialect peculiar to the island, but closely related to Tongan, Samoan, and Cook Island Maori. Owing to the limited natural resources of the Island and the earlier extensive use of Niueans as indentured labour in other Pacific groups, the population has shown little increase in numbers, and that increase has been during recent years. Totals of the eight censuses taken since the annexation of Niue by New Zealand (11th June, 1901) are as follows:—

19024,079
19063,822
19113,943
19163,880
19213,750
19263,795
19364,104
19454,253

The following comparison between the figures of the census taken on 25th September, 1945, and the estimated population as at 31st March, 1950, shows an increase of 218 persons over the four and a half-year period:—

 Census, 1945.Estimate, 31st March, 1950.
Niuean population—  
  Males2,0412,160
  Females2,1892,277
Population other than Niueans—  
  Males1324
  Females1010
    Total population4,2534,471

The population is distributed over twelve villages of which Alofi with a population of approximately 970 is the largest. Alofi is also the administrative centre. The inhabitants of Niue are British subjects and New Zealand citizens.

Health and Vital Statistics.—Niue, although situated in the tropics, is largely free from diseases prevalent in tropical countries. The endemic disease of filariasis remains prevalent among the people, but yaws continues to decrease.

All medical and dental treatment, including hospitalization, is provided free of charge to the inhabitants, the money for this expenditure being provided out of subsidies from the New Zealand Government. There is a Government hospital of sixteen beds, but it averages many more patients during periods of epidemic or serious illness. Attached to the hospital is an X-ray unit, a dispensary, an out-patients' clinic and a dental clinic. All outer villages are visited each week by the Medical Officer, and a mobile clinic is being constructed to assist him in this work. The staff of the Medical Department at 31st March, 1950, consisted of a European Matron, a European Nursing Sister, a Tongan Assistant Medical Practitioner and two Niuean Dental Officers. In addition, there were three Niuean dispenser-orderlies, one Niuean dental assistant, and six Niuean nurses, all of whom are untrained. At present receiving training at the Central Medical School, Suva, are four Niueans, two as Assistant Medical Practitioners, one as a Dispenser, and one as a Sanitary Inspector and Mosquito Control Officer. Also three Niuean girls are being trained as nurses at the Government hospital at Apia, Western Samoa.

Births during the calendar year numbered 148, and deaths 95, including 18 during the first year of life.

The following comparative table shows the amounts expended on health services over the last five financial years:—

1945–46.1946–47.1947–48.1948–49.1949–50.
Amount expended£5,305£8,211£7,293£8,019£7,529
Population4,2714,3284,3184,3334,471
Amount per head of population£1 4s. 9d.£1 17s. 11d.£1 13s. 9d.£1 17s. 0d.£1 13s. 8d.

Education.—The Administration maintains three schools, which are under the control of a European Education Officer assisted by a European infant-mistress. Some 71 Niuean teachers, teacher-trainees, and assistants are employed. In addition, the London Missionary Society maintains schools in villages in which there are no Administration schools. A subsidy of £800 per annum is paid to the Society. A proposal to replace the Mission schools with four Administration schools is being proceeded with, and this accounts for the high teacher-pupil ratio in the Administration schools at the present time. Seven Niuean boys are receiving education in New Zealand schools under the New Zealand Government scheme, and another is receiving tuition as a manual instructor at the Suva Technical School.

The total number of scholars attending schools at the end of 1949 was 1,225, of whom 710 were on the rolls of Administration schools and 515 on the rolls of the Mission schools. The present policy is to increase the amount of the vernacular used in the schools, to foster in the schools the indigenous culture of the island, and to encourage local handicrafts as a part of school activities. The first issue of a School Journal in Niuean was published in December, 1949, while teaching-aids, &c., are supplied by New Zealand.

Communications and Postal Services.—A radio station is maintained by the Administration. Full postal services are provided at Alofi, and the Nine Post Office Savings-bank operates as a branch of the parent system in New Zealand.

Labour and Employment.—The only substantial employer of labour is the Administration, in the Police, Public Works, Transport, and other departments, and to load or discharge vessels. In recent years a large number of unskilled labourers have been employed on public works. The basic wage-rates are 7s. per day for unskilled work, 9s. for waterside work, and a varying scale for other employment.

Trade.—Both exports and imports reached a record level in 1949. The largest contributing factor was increased exports of copra together with higher prices for this commodity. There were no exports of bananas in 1947, owing to the fact that it was found impossible to guarantee the arrival of fruit-vessels at such times as would avoid Sunday work on the part of the Niueans, who had expressed themselves as being against work in any form on Sundays. Exports of bananas were resumed during 1948.

Exports and imports for the last five years are given below. The greater part of the trade is with New Zealand.

Year.Exports.Imports.Total Trade.
 £££
194529,46826,97256,440
194635,87346,67782,550
194745,59158,796104,387
194846,76969,508116,277
194952,05276,761128,813

Exports of principal commodities during 1947, 1948, and 1949 were:—

Commodity.Unit.1947.1948.1949.
Quantity.Value.Quantity.Value.Quantity.Value.
   £ £ £
CopraTon69528,50557229,57189343,843
BananasCase  1,0086603,3281,724
Plaited-ware  15,797 16,262 6,080

As in the case of the Cook Islands a nine years' contract for the copra supply has been entered into with the United Kingdom Ministry of Food.

Public Finance.—Exclusive of subsidy from the New Zealand Government, income for the year 1949–50 amounted to £34,673, while expenditure totalled £74,942. The subsidy received was £44,838, leaving a net surplus of £4,569.

A comparative statement of revenue and expenditure during the last five financial years is as follows:—

Year Ended 31st March.Revenue.Expenditure.Deficit.Subsidy.Final Surplus or Deficit.

* Includes £20,190 and £16,297 for 1947 and 1948 respectively from sale of stamps.

 £££££
194614,59025,12310,5337,755−2,778
194728,726*32,3873,6615,000+1,339
194828,417*42,73014,3136,522−7,791
194919,43450,82031,38632,257+871
195034,67374,94240,26944,838+4,569

Revenue within the island is raised principally from the sale of stamps, from radio telegrams, and from import and export duties. Income-tax at New Zealand rates is payable, but in effect is collected only from Government officials and three or four traders. The main items of revenue for 1949–50 were stamp sales, £3,769; Customs import duties, £6,471; income-tax, £3,100.

WESTERN SAMOA.—Descriptive—Western Samoa is comprised of the two large islands of Upolu and Savai'i and the islets of Apolima, Manono, Fanuatapu, Namu'a, Nu'utele, Nu'ulua, and Nu'usafe'e. The geographical boundaries are between latitude 13 degrees and 15 degrees south and longitude 171 degrees and 173 degrees west.

Savai'i is the larger of the two main islands, with a length of 46 miles, a breadth of 25 miles, and a total area of 703 square miles. The island is mountainous, rising to a height of 6,094 ft. Upolu, which extends some 45 miles in length and 13 in breadth, measures about 430 square miles in area, and rises to a height of 3,608 ft. Of the two, Upolu is the more fertile and populous, and contains two-thirds of the population. Only two of the smaller islands, Manono and Apolima, which are situated in the strait which separates Savai'i and Upolu, are inhabited. The remainder are within or near the fringing reef surrounding Upolu. The climate of the group is equable, the average temperatures during the last fifty-eight years, showing a mean daily maximum of 84.8° Fahrenheit, and a mean daily minimum of 74.5° Fahrenheit while the average annual rainfall for a period of fifty-nine years is 112.5 inches.

Administration.—The territory of Western Samoa was previously administered pursuant to a mandate conferred upon His Britannic Majesty, to be exercised on his behalf by the Government of New Zealand, and confirmed by the Council of the League of Nations on 17th December, 1920.

Following the establishment by the Charter of the United Nations of an international trusteeship system, New Zealand in January, 1946, communicated to the General Assembly of the United Nations its acceptance of the system in its application to Western Samoa.

A draft trusteeship agreement submitted by the New Zealand Government to the United Nations in October, 1946, was, with minor amendments, adopted by the General Assembly on 13th December, 1946. In this agreement (printed as parliamentary paper A.-2C, 1947) the Government of New Zealand is designated as the administering authority for Western Samoa.

In the meantime the Samoan people asked that they be granted self-government with New Zealand remaining in the role of adviser and protector. A petition to this effect was transmitted to the Secretary-General of the United Nations through the New Zealand Government in January, 1947. The petition was considered by the Trusteeship Council on 24th April, 1947, and, on the invitation of the New Zealand delegate, a Mission of Inquiry arrived in Western Samoa the following July.

On 27th August, 1947, the New Zealand Government's proposals for political development in Western Samoa were outlined in a statement in Parliament. The Mission published its report in October, 1947, and it was considered by the Trusteeship Council in the following month. The recommendations of the Mission were found to be closely in line with the policy of the Administering Authority. The constitutional framework for implementing these proposals was established with the passing by the New Zealand Parliament of the Samoa Amendment Act, 1947, which came into force on 10th March, 1948. A further amendment to the Act was passed in 1949.

The administration of the Executive Government is entrusted to the High Commissioner, who is appointed by the Governor-General of New Zealand, and is responsible to the Minister of Island Territories. He is President of the Council of State and of the Legislative Assembly. He also presides at meetings of the Fono of Faipule which he attends. The High Commissioner has no “reserve” or emergency powers of his own.

The Council of State is composed of the High Commissioner and the Fautua. Appointment to the Council is made by the Governor-General, who in an appropriate case would invite the Samoan members of the Legislative Assembly and the members of the Fono of Faipule to submit recommendations. At present there are two Fautua, who are the representatives of the two royal lines of Tupua and Malietoa. The High Commissioner is directed to consult the Council of State upon all proposals for legislation to be submitted to the Legislative Assembly upon all matters closely relating to Samoan custom, and upon any other matters affecting the welfare of Western Samoa which he considers proper.

The Legislative Assembly is composed of the members of the Council of State, twelve elected Samoan members, five elected European members, and six official members. The right of electing the Samoan members was conferred by the Samoa Amendment Act, 1947, on the Fono of Faipulo. This body at present has forty-one members representing territorial constituencies based on the traditional districts and sub-districts of Western Samoa. Each constituency returns one member, who must be supported by a majority of the matai in the constituency. The franchise is confined to the matai, who constitute about one in four of adult males. The Samoa Amendment Act, 1923, as amended, gave the Fono of Faipule a statutory right “to consider such matters relative to the welfare of the Samoan people as of their own initiative they think proper or as may be submitted to them by the High Commissioner and to express their opinions and make their recommendations to the High Commissioner.” In addition, by a custom which has developed over a period of years, the Fono submits nominations for the appointment of Samoan District Judges, the Samoan Plantation Inspectors, and the Samoan Associate Judges of the Land and Titles Court.

The laws of the territory are made by Act of the New Zealand Parliament or by Ordinances passed for the peace, order, and good government of the Territory by the Legislative Assembly of Samoa. In addition, by the Samoa Act (1921) the Governor-General in Council is empowered to make in New Zealand “all such regulations as he thinks necessary for the peace, order, and good government” of the Territory. These powers are intended as a safeguard for New Zealand's position as trustee, and not as the normal means of legislation. The scope of the legislative power of the Assembly was specifically widened under the 1947 amendment to include the power of overriding New Zealand legislation, except in regard to certain reserved subjects.

The work of the Executive Government is carried on, under the High Commissioner, by a Secretariat headed by the Secretary of the Government of Western Samoa and comprising suitable ancillary services. The general work of co-ordinating the policy is carried out by the Secretary, who is associated in certain matters with the Secretary for Samoan Affairs.

The Samoa Amendment Act, 1949, which came into force on the 1st April, 1950, established a Western Samoan Public Service under the control of a Public Service Commissioner of Western Samoa who is appointed by the Governor-General of New Zealand. The Commissioner is assisted by two Assistant Public Service Commissioners, one of whom is the Secretary of Island Territories or his deputy, and the other to be appointed by the Governor-General on the nomination of the Council of State.

The people of Western Samoa are described in documents of travel as “British protected persons, Natives of the Territory of Western Samoa.” The non-indigenous inhabitants of the territory retain their own nationality and citizenship. Under the provisions of the British Nationality and New Zealand Citizenship Act, 1948, however, individual inhabitants of the Territory may apply for New Zealand citizenship by naturalization. As at 31st March, 1950, certificates of naturalization under the earlier legislation had been granted to 54 Samoans and to 99 inhabitants of European status, including children in both cases.

Population and Vital Statistics.—A census of population was taken by the Administration on the night of 25th September, 1945. The following table shows the summarized results, together with corresponding figures for the 1936 census. The estimate as at 31st March, 1950, is also shown.

1936 Census.1945 Census.Estimate 31st March, 1950.
Europeans and European-Sampans3,0755,3996,015
Samoans (including other island races)52,26662,42271,900
Chinese—   
  Contract labourers502294176
  Others207
Melanesians837564
    Totals55,94668,19778,155

The total of 68,197 at the census of 1945 did not include 55 members of the United States Forces in Western Samoa at the census date, nor did it include 73 persons on board an overseas vessel.

Apia, the only town in the territory, is situated on the north coast of Upolu and together with immediately adjoining villages, has a population of approximately 10,000. It contains the administrative headquarters and is the only port of call for the territory. Most of the Samoan people live on the coasts, 11 villages only out of a total of 192 being situated inland.

The substantial increase in the number of Europeans and European-Samoans in 1945 was not wholly the result of migration or natural increase, but was largely due to a difference in status. Legislation in the intervening period changed the status of illegitimate half-castes from Samoans to Europeans, thus overstating the increase in Europeans and understating the increase in the number of Samoans.

Statistics of the age-constitution of Samoans (including other island races) as disclosed by the 1945 census will be found on page 821 of the 1947–19 issue of the Year-Book.

The following figures, which show the numbers of Samoans (including other island races) at varying intervals, reveal a particularly rapid rate of natural increase in recent years, especially since 1926. As stated earlier, the increase between 1936 and 1945 is understated to some extent. The heavy toll exacted by the influenza epidemic in 1918 is evident from the estimates for 1st October and 31st December of that year.

German regime— 
  Census mid-190633,478
  Census mid-191133,554
New Zealand Administration— 
  Census mid-191736,216
  Estimated, 1st October, 191837,113
  Estimated, 31st December, 191831,200
  Census, 17th April, 192132,522
  Census, 1st January, 192636,880
  Census, 4th November, 193652,266
  Census, 25th September, 194562,422
  Estimated, 31st March, 195071,900

During the year ended 31st March, 1950, there were 3,496 births in Western Samoa and 661 deaths. Arrivals in the territory numbered 3,958, and departures 4,019.

Health and Hospitals.—The Samoa Health Ordinance, 1921, is on the lines of the New Zealand Health Act, 1920, but remodelled to suit local conditions. A well-equipped Government hospital is maintained in Apia, while district dispensary hospitals have been established at seven villages in Upolu and six villages in Savai'i, each with a Samoan medical practitioner in attendance assisted by a qualified Samoan nurse, with three additional out-stations in Upolu, each in charge of Samoan nurses. There is also a mobile clinic and two school clinics. The health service staff in March, 1950, consisted of European Medical Officers, 23 Samoan medical practitioners, 1 European Dental Officer, and 7 Samoan dental practitioners, 1 pharmacist, 1 qualified bacteriologist of part-Same an descent, and a nursing staff of 9 Europeans, 55 Samoan staff nurses, and 26 others. (At present 7 Samoan students are in training as medical practitioners at the Central Medical School in Suva.)

During the year 1949–50, 4,717 in-patients and 136,611 out-patients were treated at the hospitals and dispensaries, while the mobile clinics gave 10,788 school treatments, 23,817 yaws injections and 2,655 typhoid inoculations.

Considerable help in the care of the sick is afforded by women's committees which are established in all the main villages. Qualified Samoan nurses regularly visit and lecture to these committees and at the same time inspect babies and school-children. Demonstrations and lectures are also given to these women's committees by the European and Samoan Medical Officers and Health Inspectors. Health education is also carried on by means of radio broadcasts in the Samoan and English languages.

Western Samoa is free from many of the diseases which present the most serious problems in many tropical areas. The climate is healthy even for Europeans unaccustomed to the heat and humidity; and the general level of nutrition is much more satisfactory than in a great many tropical regions. The most prevalent diseases are hookworm, yaws, and filariasis, and diseases which result from faulty sanitation, such as typhoid, dysentery, and infantile diarrhoea. Tuberculosis is also a major problem, and chest diseases such as pneumonia are common. Leprosy occurs, and diagnosed cases are kept in a special hospital at Apia until transport to the leper settlement at Makogai can be arranged.

Systematic campaigns to stamp out these diseases have been in progress since 1923, resulting in a marked improvement in the general health of the Samoan people.

Under New Zealand administration the sanitation of Apia has been considerably improved, and the reticulation with a high-pressure water-supply system completed. Water has been piped into several villages from springs in the hills, while in other villages where this is not possible large reinforced-concrete tanks have been erected to receive the rain-water from church buildings.

An agreement for the establishment of a South Pacific Health Service was made in 1946 between the Government of New Zealand (in respect of Western Samoa and the Cook Islands), the Government of Fiji, and the Western Pacific High Commission. This agreement established a South Pacific Board of Health, with a Chief Administrative Officer, known as the Inspector-General, South Pacific Health Service, with headquarters at Fiji. The functions of the Board are to advise the participating Administrations on health matters, and to assist generally in the more effective control of disease and promotion of health in the territories under their control.

In December, 1948, the New Zealand Medical Research Council sent a research survey team consisting of three doctors and a technician to Samoa. The function of this team was to examine the field in view of reports and recommendations which had been made to determine the most urgent research problems. The main subjects examined were the prevalence and nature of tuberculosis, the general health status of a Samoan village, filariasis, leptospirosis, and fungus diseases. Two months' field-work clarified the issues in these fields and has made possible the preparation of detailed research projects. The Medical Research Council has framed proposals for the continuance of this work on a long-term basis.

Education.—Originally education in Samoa was conducted solely by the missions, and, except where pupils were being trained as pastors, instruction in most schools was of an elementary nature After the establishment of the mandate the Administration schools undertook more advanced teaching, involving the partial use of the English language, while not interfering with Samoan as the language of the people. At the same time several of the mission schools made available parallel facilities for pupils other than trainees.

During the year ended 31st March, 1947, a reorganization of the educational system was commenced, and the now general scheme is as follows:—

Mission Denominational Schools

|

Primary Schools

|

Denomination Colleges

Administration Schools

|

Primary Schools

|

Middle Schools and Accelerate School

|

Post-primary Schools (Intermediate and Secondary)

|

Teachers' Training-school

Marist and Convent Denominational Schools

|

Primary Schools

|

Middle Schools

Primary Schools.—These schools form the base of the whole educational system. They provide a broad general course of six years' duration for children in the villages, and are the equivalent of the elementary schools of other countries. Instruction is given in the vernacular, but the English language is taught as a subject. Visual education and educational broadcasts are also utilized as media of instruction.

Middle Schools.—This type of school selects the best of the children after three years in the primary schools and provides them with a further five years' course. There are two of these schools, Avele (on Upolu) and Vaipouli (on Savai'i), being boys' residential schools, the former Malifa girls' school being absorbed during the year by the new intermediate and accelerate schools. The function of these schools is to provide education to a higher level than that given by the village elementary schools. Most of the instruction was formerly in the English language, and the general curriculum approximates that of the New Zealand primary schools, though the standard achieved has fallen short of the latter.

The boys grow and prepare all their own food, and the only payment required is a small annual fee to cover the cost of medical treatment, sports equipment, and extra food such as meat and flour.

Pupils who leave these schools are in demand throughout Western Samoa to fill positions involving a certain amount of responsibility and are to be found as traders, clerks, nurses, pastors in the churches, and cadets in the administration. They will in future be encouraged to return to their villages, and to infuse their people with the idea of greater food-production and deeper understanding of the value of their land and natural amenities.

Accelerate School.—This school was opened at Malifa as a preliminary academic training for the most promising Samoan pupils. All instruction is in English and the syllabus follows the lines of a New Zealand school. The best of these pupils will later form the student nucleus of the projected Samoa College. Unlike the pupils of the middle schools, these students are not required to grow their own food, and so will have adequate time for study in a well-equipped modern school staffed by fully-qualified teachers.

European Schools.—There are two of these schools, one in Apia and the other at Aleisa, which provide a general elementary course up to Standard 4 for those children who are European by birth or status. In both these schools English is the medium of instruction, and the curriculum approximates that of the New Zealand primary schools. Standards 5 and 6 were transferred to the new intermediate school during the past year.

The Intermediate School.—This school was established to meet the growing need of both European and Samoan children for a higher standard of education than was possible in the upper classes of Leifiifi and Malifa European primary schools. It is well equipped and staffed by fully-qualified teachers. A more specialized type of education is given by teachers who are specialists in certain subjects.

The Secondary School.—This is a small two-teacher school with a roll of 40 and is situated in Apia. It gives more advanced education to pupils who have completed a course either at the European schools or the middle schools or the corresponding type of school under mission jurisdiction. Entrance is by competitive examination. The school aims at taking pupils to the standard of School Certificate in New Zealand, which, in general, can be reached after completing a satisfactory course of three years' secondary work. Few entrants, however, envisage any sustained course when they attend the school, and most of them leave after a year or two for commercial positions, which can be more easily obtained by virtue of the extra training. This school may ultimately be incorporated in the secondary department of Samoa College.

The Teachers' Training School.—This school was established in 1939 to meet the urgent demand of village schools for trained teachers. In addition to trainees for Government schools, a quota is admitted from the mission schools on a proportionate basis, the total roll in 1949 being 123. The educational standard of the entrants has become higher each year, and the bettor staffing and equipment of the college, together with the longer period of training for the students, is having a marked effect upon the teaching qualifications of the graduates.

The Malifa Primary School of 800 pupils and the model school of 65 pupils are attached as practising schools to the Training College and are under the direct control of the Principal of the Training College. This ensures continuity and uniformity of teaching practice, as the methods taught in the Training College are exactingly carried out in the practising schools.

Higher Education: Samoan Scholarships.—In order to provide the most intelligent Samoan and part Samoan children with better opportunities for a more sustained course of higher education, a scholarship scheme was inaugurated in 1945 and 61 scholarships have been awarded to date. Children selected under this scheme are sent to New Zealand to study there, the cost being borne by the New Zealand Government. The period of the scholarship is determined by the ability of the holder to proceed along the road of higher education. Ten students entered the Central Medical School, Suva, during the year under medical scholarships.

Mission Schools.—The London Missionary Society, Roman Catholic, Methodist, Latter Day Saints, and Seventh Day Adventist missions all maintain schools of various types, ranging from the very elementary pastor's or catechist's school to those of secondary status. Although these schools are not subject to Government control, there is increasing evidence of the wish on the part of each of the mission authorities to move with the Government in the field of education.

School Rolls, Teachers, &c.—The following table gives particulars of the Administration schools for the year ended 31st March, 1950.

Type.Number of Schools.Number of Teachers.Roll Numbers.
Boys.Girls.Totals.
Primary (Primer 1–Std. 4)1033046,4916,42112,912
Middle (Std. 2–Std. 6)26180 180
European (Primer 1–Std. 4)227271229500
Accelerate School14346397
Intermediate School133889127
Post Primary (Forms III–V)12251035
Teachers' Training School165861119
Adult Night School1676 76
    Totals1123587,1736,87314,046

The next table contains particulars of the mission schools, according to denominations.

Mission.Pastor Schools.Other Schools and Colleges.Pastor and Samoan Teachers.European Teachers.Number of Pupils.
Total.Not Attending Government Schools.
London Missionary Society1788681512,7687,377
Roman Catholic9025115675,1835,082
Methodist7458954,0731,383
Latter Day Saints43338820500
Seventh Day Adventist3381206206
  Totals349449268623,05014,548

It should be noted that there is considerable duplication in the foregoing figures showing the totals of pupils in the Administration and mission schools respectively, owing to the fact that many children attend both the mission pastor schools (for religious instruction) and the primary schools (for secular education).

Labour.—Regular employment for wages is not a natural form of Samoan life, and the results of the 1945 Census showed only 3 per cent. of the Samoan population in such employment. They are not held to contracts, but work as and when they wish.

The plantations can, to a certain extent, overcome the difficulty regarding regular employment by engaging co-operative or community groups on casual work, but in the stores and in the Administration where regular daily tasks are required the labour turnover is very large. On the other hand, no difficulty is experienced in obtaining labour for the two or three days of intensive work available when a cargo-vessel is in port.

This reluctance on the part of the Samoans to undertake regular work led during the German regime to the recruitment of indentured labour from China and from the Solomon Islands. The New Zealand Government, however, for economic and social reasons, has gradually reduced the number of Chinese, until at 31st March, 1950, there were only 176 left in the territory. These are being permitted to remain in the territory. There were 64 Melanesian labourers remaining in Western Samoa at 31st March, 1950, practically all of whom were employed by the New Zealand Reparation Estates.

New Zealand has extended a number of International Labour Organization conventions to Western Samoa, and consideration is being given to the advisability of introducing industrial legislation to suit the needs of the Territory.

The basic minimum wage for an adult male is 6s. 8d. per day and rates range up to 18s. per day.

Trade.—The exports and imports of Western Samoa for each of the last eleven years are:—

Year.Exports.Imports.
 ££
1939220,409194,736
1940221,733165,453
1941242,881154,335
1942385,976299,664
1943278,213605,911
1944391,317460,764
1945630,446398,760
1946719,050478,695
19471,351,770923,773
19481,108,258954,028
19491,344,758881,584

The next table shows for the years 1948 and 1949 the export and import values according to country of destination and country of origin respectively.

Country.Exports.Imports.
1948.1949.1948.1949.
 ££££
New Zealand255,550278,524301,544321,302
Australia34,51143,093154,749132,760
United Kingdom597,185713,619146,733132,205
Canada51,638102,16568,87443,672
Fiji1401,65231,33933,740
United States of America167,067194,994180,368193,417
Other2,16710,71170,42124,488
    Totals1,108,2581,344,758954,028881,584

The principal exports in 1949 consisted of copra, £787,274; cocoa-beans, £387,611; bananas, £64,644 and dessicated coconut, £95,142.

Control of Trade and Finance.—Certain measures in regard to trade and finance were brought into operation in Samoa by the Samoa Import Control Regulations 1944 and the Samoa Finance Emergency Regulations 1944 (now replaced by the Western Samoa Exchange Control Regulations 1948).

These measures were introduced more particularly to ensure the supply of essential goods from exporting countries. There is no impairment of the authority of the local Administration to permit imports from any country from which they may be available.

The machinery for exchange, import, and export control is still in operation, but there has been considerable relaxation in its application, particularly in respect of the import and export to non-dollar areas and in the establishment of general convertibility of currency with many sterling countries—the Territory following in these respects the actions of the Administering Authority with reference to its own economy. Imports from dollar areas are governed mainly by block allocations of dollar exchange to the various importers. Western Samoa is a member of the sterling pool, to which her bard-currency contributions are made mainly from earnings on the export of cocoa. The 1949 figures show a small not dollar surplus of receipts over expenditure.

Public Finance.—In the years following the establishment of the Mandate Administration in 1920 New Zealand made free gifts for public services amounting to £269,362, and, in addition, advanced £179,200 by way of loans. No further grants or loans have been necessary since 1931–32, the Territory during that period having been fully self-supporting, but the New Zealand Government has of recent years made grants as set out in the following table:—

Subsidy or Grant.1945–46.1946–47.1947–48.1948–49.1949–50.
 £££££
Education and cost of overseas scholarships3,1072,3517,55210,88024,072
Roads 8,10012,98528,91525,000
Health    50,000
Broadcasting  22,4751,289 
Rhinoceros-beetle control    603
    Totals3,10710,45143,01241,08499,675

In addition to these cash grants, the New Zealand Government has provided free educational equipment to Samoan schools. All loan indebtedness has been fully paid off, and there was an accumulated surplus of £706,737 at 31st March, 1950, £666,250 of which was invested in New Zealand.

The following table shows the total revenue and expenditure for each of the last five years. The principal items of expenditure are also shown.

Year Ended 31st March,Revenue.Expenditure.
Education.Samoan Affairs.Public Health.Public Works.Total (Including “other”).
 ££££££
1946287,39918,54915,66650,69972,420231,527
1947334,83828,61018,32765,49250,134231,236
1948548,68239,50419,68178,426138,958359,285
1949500,33846,85520,55589,707165,987464,520
1950521,85970,41323, 889105,655129,386458,095

NOTE.—Subsidies from New Zealand for specific purposes from 1915–46 onwards shown In the preceding table are not included in the foregoing figures.

In 1949 the New Zealand Government decided to allocate the balance of the accumulated but unallotted profits of the New Zealand Reparation Estates up to 31st March, 1949, as follows: education, £100,000; health, £50,000; road subsidy, £25,000: staff housing, £40,000; rhinoceros-beetle control, £5,000; and overseas scholarships, £13,000; the two latter to become annual disbursements.

The principal sources of revenue are import and export duties which for the financial year ended 31st March, 1950, produced £232,490, and £83,057 respectively. Direct taxes with the amounts they produced in 1949–50 are: store-tax, £70,276; salary-tax, £4,960; licences and fees, £7,207; building-tax, £5,378; water-rates, £2,156; stamp duties, £807; and amusement-tax, £221. Store-tax, the principal direct tax is a tax on the gross selling-price of goods. There are no direct taxes imposed on Samoans other than the salary-tax on incomes in excess of £200 per annum payable in cash by-individuals after deducting normal exemptions.

Strength of the Public Service.—At the 31st March, 1950, there was a total of 1,066 persons employed in the then constituted Samoan Public Service, compared with 872 in the previous year. This total is inclusive of 25 officers seconded from the New Zealand Public Service, 52 non-seconded European officers recruited from outside Western Samoa, 117 local officers of European status, and 872 Samoan officers. The branches with a numerical strength of 20 or more officers were Education, 525; Health, 263; Police and Prisons, 88; Samoan Affairs, 29; Radio, 27; and Public Works, 26.

Communications and Services.—Apia is the only port of entry, there being a monthly passenger and cargo service from New Zealand via Fiji and Tonga. A weekly service is carried on between Apia and Pago Pago in American Samoa. An airport (Faleolo) is also established in the Territory and an emergency flying-boat base at Satapuala. A regular fortnightly air service is operated from New Zealand via Fiji and Tonga by the National Airways Corporation of New Zealand.

There are 228 miles of roads suitable for motor traffic (642 motor-vehicles registered in 1949–50); 35 miles of these roads are sealed, 144 miles metalled or surfaced, 26 miles are stone pitched, and the remainder are unmetalled earth roads.

Postal and telephone services are provided by the Postal Department. In addition to a branch of the Bank of New Zealand, there is also a Post Office Savings-bank. In the year 1949–50, withdrawals from the latter amounted to £127,134, deposits to £116,014, while the 6,428 depositors held an amount of £274,873 to their credit at the 31st March. 1950.

TOKELAU ISLANDS.—Situated some three hundred miles to the north of Western Samoa, between 8° and 10° south latitude and between 171° and 173° west longitude, are the three atoll islands of Atafu, Nukunono, and Fakaofo, of the Tokelau (Union) Group. A fourth island (Swain's or Genté Hermosa), belonging to the United States of America and lying 100 miles to the south of Fakaofo, completes the group.

Each atoll is composed of a number of coral islets surrounding a central lagoon. These vary in size from 100 yards to four miles in length, while none is wider than 400 yards nor, with but few exceptions, higher than 10 ft. above sea-level. The land area of each atoll is approximately as follows: Fakaofo, 650 acres; Atafu, 500 acres; Nukunono, 1,350 acres.

Owing to the absence of humus in the soil, the vegetation is practically restricted to coconut-palms, although one islet of each atoll is reserved for growing the tauanave, or tausunu, a short stubby tree which yields to the Tokelau Islanders their only timber for the construction of canoes, houses, and utensils.

Administration.—The islands were discovered in the year 1765 by Commodore Byron, R.N. In 1916 the islands, at the request of the inhabitants, were formally annexed to Great Britain by an Order in Council which also extended the boundaries of the Gilbert and Ellice Islands Colony to include the Tokelau Group (then known as the Union Islands) and their dependencies. The group was governed by the High Commissioner for the Western Pacific and administered by the District Officer at Funafuti, in the Ellice Group. In 1925 the New Zealand Government, at the request of His Majesty's Government, agreed to administer the islands. By Order in Council the Group was disannexed from the Gilbert and Ellice Islands Colony, and by a further Order in Council in the same year the Governor-General in Council of New Zealand was empowered to make laws for its peace, order and good government, and authorized to delegate from time to time to the Administrator of Western Samoa so much of this power as might be considered desirable. The right was reserved to the Governor-General in Council to disallow any laws passed under this delegated power and to make any restriction doomed proper. The vesting of administrative powers in the Administrator of Western Samoa (now the High Commissioner) was a matter of convenience, the Tokelau Group having no political connection with the Territory of Western Samoa.

The Tokelau Nomenclature Ordinance 1946 made by the Administrator officially fixed the name of the group, hitherto sometimes referred to as the Union Islands, as the Tokelau Islands or the Tokelau Islands Dependency.

By the Tokelau Islands Act, 1948, the Tokelau Group was included within the territorial boundaries of New Zealand; legislative powers are now vested in the Governor-General in Council, while executive powers remain with the High Commissioner of Western Samoa.

There are no local European officials in the Tokelau Islands, nor is it considered that any are necessary. If a resident District Officer were appointed he would not be able to fill in his time with administrative duties, and could only properly supervise the island in which he resided. The group is administered through the Department of Samoan Affairs in Samoa, and is visited once a year by the High Commissioner. Units of the Royal New Zealand Navy also make annual visits. The following is the staff establishment of officials for each of the three atolls:—

Faipule and Magistrate (Fa'amasino).Wardress.
Pulenu'u (Mayor of village).Assistant Medical Practitioner.
Failautusi (clerk and postal officer).Tokelauan Nurse.
Wireless Operator.Dresser.
Chief of Police.Weather Reporter.
Police. 

Population.—The people, though closely allied to the Samoans, have not such a fine physique. Intermarriage with Gilbert and other islanders has probably lessoned the strain of pure Polynesian blood to a greater extent than in the case of the Samoans.

A census of the Tokelau Islands was taken on 25th September, 1945, by the Western Samoan Administration, and the results, together with corresponding data as at the census of 4th November, 1936, are contained in the following table.

Island.Census of 4th November, 1936.Census of 25th September, 1945.
Males.Females.Total.Males.Females.Total.

* Excludes 28 members of the United States Forces in the Tokelau Islands on census night.

Fakaofo247261508270300570
Atafu178200378205246451
Nukunono143141284198169367
  Totals5686021,1706737151,388*

The 1945 Census figures also revealed that there were 153 Tokelau Islanders absent in Samoa at the date of the 1945 Census, mostly attending the London Missionary Society and Roman Catholic schools there. On the other hand, there were 15 Samoans present in the Tokelau Islands at the time of the census. The population at 31st March, 1950, was 1,460.

On Atafu all the inhabitants belong to the London Missionary Society, and on Nukunono all are adherents of the Roman Catholic Mission. On Fakaofo the greater number belong to the London Missionary Society. At the date of the census taken in September, 1945, there were 97 Catholics on this atoll. Both Missions—the Roman Catholic and the London Missionary Society—have their headquarters in Samoa, from which the work in the Tokelau Islands is administered. The London Missionary Society's ship “John Williams” has now resumed annual visits to Atafu and Fakaofo, and since December, 1946, there have been two Catholic priests—one European and one Samoan—in residence at Nukunono. A number of sisters arrived in Nukunono in 1948 and established a convent school.

Health.—Health services in the Tokelau Islands are organized and supervised from Apia, from where also the supplies are drawn. The incidence of disease in the Islands is slight. There have been no cases of smallpox, leprosy, plague, or cholera, and yellow fever is unknown. The only mosquito identified in the islands is the Aedes pseudoscutellaris, and filariasis is present, carried by this mosquito. There is no malaria. Recent surveys reveal a micro-filarial of about 10 per cent., most of the carriers having resided either in Samoa or some other endemic zone for at least some months. No cases of syphilis have been reported, although yaws is common amongst the children. This disease, however, is quickly reduced by appropriate therapy.

The medical staff at 31st March, 1950, consisted of a Samoan Medical Practitioner who moves from island to island at three-monthly intervals, 5 dressers, 2 staff nurses, and 3 nurses. In addition, Assistant Medical Practitioners are seconded from Samoa for short periods of service and both Nukunono and Fakaofo have had the services of one of these during the past year. A senior Samoan staff nurse has been seconded to Atafu, and it is intended to continue the secondment of more highly-trained nurses and other staff until the Tokelau staff themselves have been trained. Staff are trained at the Central Medical School, Suva, in the case of Assistance Medical Practitioners, and at Apia in the case of dressers and nurses.

Water-tanks have been established on each of the islets. At Fakaofo there are three tanks with a total capacity of 43,800 gallons and a catchment area of 2,646 square feet. At Nukunono there are three tanks with a total capacity of 35,500 gallons and a catchment area of 2,700 square feet. At Atafu the two tanks have a total capacity of 42,500 gallons, with a catchment area of 2,700 square feet. On Fakaofo there are two wells, and on Atafu one of a less satisfactory nature, all of which are available for use for washing purposes. Three of the tanks, one in each atoll, have been completed within the last few years. With the completion of the building programme additional catchment areas and tanks will provide improved sources of supply.

Education.—Village schools under mission pastors or catechists are maintained on each island, education being limited for the most part to elementary arithmetic, reading and writing the Samoan language, and scriptural literature. Stationery, material, and other equipment have been supplied from time to time, and it is also intended to send School Journals in Samoan, and, as they become available in the future, elementary textbooks in the Samoan and English languages. Certain of the brighter Tokelau children are sent from time to time to attend London Missionary Society or Catholic schools in Samoa. Likely lads have also been chosen to receive training in Government schools with a view to appointing them later as clerks, radio operators, or, as the Tokelau people have themselves requested, possibly as medical cadets with a view to later training as medical practitioners if they prove suitable.

Trade and Finance.—The only exportable products of the islands are copra and good-quality plaited reversible floor-mats.

The revenue obtained in the Tokelau Islands during the year 1949–50 was £4,550, and expenditure £4,471, the principal item of the latter being on health, £1,660.

THE ROSS DEPENDENCY.—By Imperial Order in Council of 30th July, 1923, the coasts of the Ross Sea, with the adjacent islands and territories between the 160th degree of east longitude and the 150th degree of west longitude, and south of the 60th degree of south latitude, were proclaimed a British settlement, within the meaning of the British Settlements Act, 1887, under the name of the Ross Dependency, and the dependency was placed under the jurisdiction of the Governor-General of New Zealand.

It is estimated that the mainland area is about 175,000 square miles; but, being completely ice-covered, it is uninhabited. On various occasions bases have been established on the mainland by Antarctic expeditions, which have made extensive explorations within the territory and on contiguous portions of the continent. As yet no economic wealth has been won from the mainland, but the territorial waters, with their large numbers of whales, have been the scene of operations for numerous factory whaling-ships. There has been, however, no New Zealand capital invested in these enterprises.

An article on the Ross Dependency, written by Mr. M. J. S. Nestor, appeared in the 1938 number of the Year-Book (pp. 900–903).

Whaling.—Regulations dated the 24th October, 1929, which supersede these of 1st November, 1926, prohibit whaling operations within the boundaries of the Ross Dependency without a licence, for which the annual fee payable is £200, and in addition to which the Government requires a royalty of 2s. 6d. per barrel (40 gallons) of whale oil. The owner or master of a vessel engaged in whaling or used as a floating whale-factory is liable to a fine not exceeding £1,000 for each day on which operations are carried on without a licence. A penalty not exceeding £100 per day is provided for in cases of non-compliance with the terms of the licence granted in respect of any vessel used for whaling or as a floating factory, and a similar penalty for failure to equip a floating factory in accordance with the requirements of the regulation, or for failure to convert a whale into commercial products within forty-eight hours after delivery at the factory. Provision is made for the arrest on warrant of any vessel in respect of which an offence against the regulations is committed.

The regulations apply, of course, only to territorial waters, and operations are carried on outside territorial waters by unlicensed expeditions. The great majority of whales are taken outside territorial waters.

The Whaling Industry Act, 1935, gives legislative effect, so far as New Zealand is concerned, to the International Whaling Convention signed at Geneva in 1931. The general principles of the Convention are in the direction of conservation of whales and regulation of the industry.

An international agreement signed in June, 1937, embodied further provisions for the regulation of the whaling industry, and from time to time supplementary protocols determine the conditions in accordance with which whaling will be conducted.

NAURU.—Prior to its forcible occupation by Japan on or about 25th August, 1942, the Island of Nauru was administered under a mandate, dated 17th December, 1920, conferred upon His Britannic Majesty and approved by the League of Nations. This mandate was held jointly by the Governments of Australia, Great Britain, and New Zealand, and by a mutual agreement the Administration was in practice left to the Australian Government. On 14th September, 1945, the Japanese garrison on the island surrendered, and civil administration was re-established on 1st November, 1945. In January. 1946, the Australian Prime Minister announced that, with the concurrence of the Governments of the United Kingdom and New Zealand, Australia would negotiate a trusteeship agreement with a view to bringing the Mandated Territory of Nauru under the International Trusteeship System. This agreement was approved by the General Assembly of the United Nations on 1st November, 1947. Meanwhile a petition was prepared by the Nauruan Council of Chiefs, and submitted to the President of the United Nations Trusteeship Council, asking for “a representative from the United Nations Organization to visit Nauru and inquire fully into, and discuss the administration of the Island with a view to Nauruans taking some share of administrative responsibility.” The Trusteeship Council informed the petitioners that the 1950 visiting Mission was scheduled to visit the Territory, and that in the meantime the Council was awaiting the observations of the administering authority.

Nauru Island is barely one-third of a degree below the equator and lies 166° 56' east of Greenwich. It is an elevated island about three and a half miles long and two and a half miles wide, with a circumference of twelve miles and an area of 5,260 acres. With the exception of a narrow coastal belt favourable for the growth of coconuts, and of a brackish lagoon, the island consists of phosphate deposits overlying a bed of coralliferous limestone. The island is completely surrounded by a coral reef, and beyond the reef the sea-bed slopes sharply downwards at an angle of 45°. These two factors, together with the presence of the strong equatorial current of two knots, materially affect the shipping facilities of the island. The fact that the island lies in the latitude of the easterly trade winds, which blow from nine to ten months of the year, is also significant, since it explains the comparative absence of rainfall, a condition necessary for the existence of phosphate deposits.

The mining rights are vested in the British Phosphates Commission, subject to the rights of the Nauruan landowners, and the deposits, as well as those on Ocean Island about 165 miles to the cast of Nauru, are worked by the Commission. Royalties paid to Nauruans during the year ended 30th June, 1949, amounted to £53,893.

The deposits do not appear to be simple guano, and some authorities consider them to be of a marine sedimentary origin raised from the sea-bed and subjected to weathering.

From the point of view of phosphate manufacture the deposits are of a very high grade, exports averaging 85.4 per cent. tricalcic phosphate and 3.4 per cent. calcium carbonate. Owing to the uneven nature of the outcrops of coralliferous limestone the extent of the deposits cannot be measured accurately, but it is estimated that there are between fifty and ninety million tons of phosphatic rock available.

Reconstruction of the cantilever loading plant at Nauru was completed during 1948–49, the north arm being brought into use in July, 1948, and the south arm in February, 1949. Opportunity was taken when reconditioning this plant to increase the capacity to over 1,500 tons per hour compared with the pre-war rate of about 1,000 tons.

The work of restoring or replacing buildings and plant damaged or destroyed during the Japanese occupation has been largely completed, but a number of improvements and additions have been planned and will take some years to construct. The Commission aimed at restoring full output capacity in about four years from reoccupation in November. 1945, and this has been done notwithstanding many difficulties, including unavoidable delays in obtaining materials and equipment.

Exports in the year ended 30th June, 1949, amounted to 680,746 tons, valued at £1,174,287, of which Australia received 513,256 tons and New Zealand 167,490 tons.

The following table shows the population of Nauru for the years 1940–42 and 1946–49. The figures for 1942 relate to 25th August, the date of the Japanese invasion.

Year.Chinese.Europeans.Other Pacific Islanders.Total Immigrants.Indigenous.Island Total.
19401,350192491,5911,7613,352
1941584681938451,8272,672
194219471933941,8482,242
194677879218781,3692,247
19471,163192311,3861,3792,765
19481,370247971,7141,4483,162
19491,440247581,7451,5243,269

Revenue and expenditure and trade of the Nauru Administration since 1940 were as follows:—

Year.Revenue.Expenditure.Exports.Imports.
 ££££
194027,10426,223541,168192,749
194112,02323,95169,375106,978
1st Jan., 1942–30th June, 194728,033107,543192,946543,916
1947–4823,74596,347527,014621,764
1948–49107,204105,6731,174,287527,104

Imports consist almost entirely of food-supplies, and of machinery for the working of the phosphate.

Chapter 47. SECTION 47—MISCELLANEOUS

Table of Contents

PUBLIC TRUST OFFICE.—In the early years of settlement in New Zealand those who wished to make provision for the administration of their estates on their deaths often experienced difficulty in selecting a suitable person competent and willing to act as trustee. That difficulty was natural in a new country where the colonists were fully occupied with their own affairs, and were unable to give to the property or business of another the close attention that was demanded. Even if an otherwise suitable trustee could he found, his solvency—an essential element in a trustee—might be in doubt, particularly when the value of colonial property fluctuated considerably and the financial position of an individual could quickly change for the worse. Again, changes of residence were frequent, and the trustee appointed might have left the colony or have moved to another part of it just at the time when his presence and services were most required.

In these circumstances the Public Trust Office was established in 1872 (it is now constituted under the Public Trust Office Act, 1908), under the administration of the Public Trustee, who was constituted a corporation sole with perpetual succession and a seal of office. The main purpose of the original Act was to provide a means of overcoming the difficulties that have been mentioned and to make available to the public a trustworthy administration of the estates of deceased persons at a minimum cost, the integrity of the Public Trustee and his officers being guaranteed by the State. That continues to be the chief function of the Office, but since its establishment the range of service has been very considerably extended and the Public Trustee now acts in many diverse capacities—e.g., as administrator in intestate estates; executor and trustee under wills; trustee under marriage and other settlements; trustee of benefit or relief funds; agent or attorney for absentees or persons desiring to be relieved of business worries; sinking fund commissioner for local authorities; administrator of unclaimed lands and property; statutory administrator of the estates of mental patients (other than Maoris) where no committee of the estate has been appointed by the Court; manager (when so appointed by the Court) of the estates of aged and infirm persons unable to administer their own affairs; administrator of compensation-moneys payable in respect of the death of a worker (unless the Court orders otherwise); statutory administrator of the estates of all convicts (other than Maoris): and agent for the investment of certain moneys of the National Provident Fund and the administration of mortgage investments forming part of the Government Superannuation Fund. The wills of persons desiring the Public Trustee to act as their executor are prepared find held in safe custody by him, free of charge.

In accordance with a provision in the Public Trust Office Act and its amendments, the Public Trustee may elect to administer both testate and intestate estates where the gross value is estimated not to exceed £400. This obviates application for a grant of probate or administration and greatly facilitates the administration of these estates, eliminates a good deal of time, and effects an appreciable reduction of costs.

The experiment of establishing the Public Trust Office—one of the earliest examples of a State service—has proved an unqualified success and a striking testimony to the foresight of the Hon. E. C. J. Stevens, who first suggested the appointment of a Public Trustee, and Sir Julius Vogel, who was largely responsible for legislative effect being given to the proposal. Ample evidence of this is to be found in the fact that 18,313 estates and funds of a total value of £58,646,288 were under the Public Trustee's administration at the 31st March, 1950, as compared with the 257 estates, of a total value of £17,500, that were under administration in 1873. The beneficial results achieved have not passed unnoticed outside New Zealand and have led to the establishment of similar offices in England and other parts of the British Commonwealth.

The progress that has been made in the present century is illustrated by the following table.

Year. Ended 31st March,Estates and Funds Under Administration.Wills of Living Persons on Deposit.
Number.Value.
  £ 
19002,6672,192,594675
192014,67920,860,68625,792
193018,54953,049,43768,253
194019,46862,622,17597,675
194918,95358,834,467144,360
195018,31358,646,288146,288

The decrease since 1940 in the number of estates under administration is accounted for by the winding-up of numerous estates, a result of favourable market conditions.

The decrease in the value of estates and funds under administration as at 31st March, 1950, was due largely to the return of deposits to insurance companies, formerly engaging in employers' liability insurance business, as from 1st April, 1949, and to the falling tendency in respect of amounts held in the Common Fund as sinking funds for repayment in due course of local authority loans. This latter trend is a consequence of the practice to repay loans by annual instalments, whereas earlier local authority loans were raised on terms similar to a flat mortgage with an accumulating sinking fund to mature when the loan fell due for repayment.

The following is a classification of the estates and funds which came under administration during the year ended 31st March, 1950, and of all estates and funds under administration at that date.

New Estates and Funds During 1949–50.Estates and Funds Under Administration at 31st March, 1950.
Number.Value.Number.Value.
  £ £
Wills estates2,0114,404,5407,80622,194,498
Trusts and agencies280970,5712,46410,495,832
Intestate estates524480,1831,8051,205,453
Mental patients' estates599818,7003,4894,333,128
Miscellaneous estates and funds1511,060,8012,74920,417,377
    Totals3,5657,734,79518,31358,646,288

Capital moneys becoming available for investment either form part of the Common Fund of the Office or, at the option of the testator or settlor, are invested in such securities as he may specify. Interest is allowed on moneys in the Common Fund at the rate fixed from time to time by the Governor-General in Council (at present 3 per cent.) and is free of all commission and other charges. Both capital and interest are guaranteed by the State, thus affording the complete security that it is the object of the Office to provide. On the other hand, moneys directed to be invested in specified securities do not carry the State guarantee, and, subject to the Public Trustee's ordinary liability as a trustee, any loss resulting from their investment falls upon the estate concerned. Commission is charged on the collection of the interest. Recognizing that the safety of the moneys is thereby assured, the great majority of testators and settlors desire their funds to be placed in the Common Fund.

New investments completed during the year ended 31st March, 1950, excluding short-term deposits, totalled £1,500,447, compared with £2,569,633 for the year ended 31st March, 1949. The reduction was partly due to the assumption by the National Provident Fund Board of the duty of investing certain portions of its funds which had previously been attended to by the Office, and, compared with the previous year, to a greater percentage of maturing investments being renewed instead of being repaid and new investments found for the proceeds. The investments held by the Office at 31st March, 1950, inclusive of special investments made on behalf of estates and funds, were £32,365,702. The foregoing figures relate exclusively to investments made by the Office and do not include investments which constituted assets of estates when the latter came under the Public Trustee's administration and which are still held as assets of those estates.

During the year ended 31st March, 1950, 7,603 wills were deposited with the Public Trustee—a slight decrease from the peacetime record in 1948–49 of 7,881, and 5,675 were withdrawn on account of the death of the testator or for other reasons, the net increase for the year being 1,928. The number of wills on deposit at 31st March, 1930, appointing the Public Trustee, executor was 68,253; by the 31st March, 1940, it had increased to 97,675; later increases brought the number to 146,288 at 31st March, 1950. In addition to preparing the will of the testator in the first instance, the Office prepares any subsequent will or codicil that may be necessary to give effect to alterations desired by him. During the year ended 31st March, 1950, effect was given in 7,100 cases to changes desired by testators.

JOINT-STOCK COMPANIES.—For thirty years following the enactment of the Companies Act of 1903, no comprehensive revision of statute law relating to companies was made in New Zealand, and the essential provisions of company law remained substantially unaltered. In 1930 the Attorney-General appointed an advisory committee, including representatives of the business community and of the professions of law and accountancy, to act with the Law Draftsman in framing a new measure, which, in the form of the Companies Act, 1933, came into force on 1st April, 1934. In great part the measure is an adaptation of the Imperial Act of 1929 to suit the special conditions of New Zealand.

A noteworthy step in the history of company legislation was taken by the Companies (Bondholders Incorporation) Act, 1934–35, which provided machinery for the incorporation of the holders of bonds issued by certain afforestation and other companies.

The position of certain investment companies in 1934 led to the appointment of a Commission of Inquiry and the passing of a novel series of legislative enactments designed to investigate their affairs and to protect the investors. The Acts passed comprised the Companies (Special Investigations) Act, 1934; the Companies (Special Liquidations) Act, 1934–35; and the Companies (Temporary Receivership) Act, 1935.

The Government has set up a committee which at the present time is considering the question of revising the 1933 Act.

A company, to acquire legal entity, must be incorporated, and under the Companies Act, 1933, incorporation is granted after the registration of the memorandum of association with the Registrar of Companies. A company incorporated overseas is not required to re-register in New Zealand, but must deliver to the Registrar of Companies for registration a certified copy of its instrument of constitution, as well as a list of its directors and the name of its authorized representative in New Zealand.

The Finance Emergency Regulations 1940 (No. 2), which replaced similar regulations issued in the same year, prohibited the registration of companies, building societies, &c., or the increase of capital of existing companies without the prior consent of the Minister of Finance. Amending regulations issued on 22nd May, 1946, removed this restriction in so far as it related to the formation of a company where the nominal capital did not exceed £10,000, or to an increase of capital of an existing company where the amount of the increase together with the amounts of other increases made within one year before that increase did not exceed £10,000.

The numbers of companies registered during the earlier war years fell to very low proportions, but commenced to rise again in 1944. With the exception of the year 1948, substantial increases in the numbers of registrations have been recorded each year since 1944. The table following gives a classification of companies registered in 1949 according to the amount of nominal capital.

Amount of Nominal CapitalPrivate Companies.Public Companies.Overseas Companies.
Number.Nominal Capital.Number.Nominal Capital.Number.Nominal Capital.
  £ £ £
Under £1,000510253,51428001100
£1,000 and under £2,000614746,17857,00011,000
£2,000 and under £3,000343740,666    
£3,000 and under £4,000192605,31727,000  
£4,000 and under £5,000112464,071    
£5,000 and under £6,000124627,273420,000  
£6,000 and under £7,00056340,50016,000  
£7,000 and under £8,00023167,00017,50017,500
£8,000 and under £9,00021168,900    
£9,000 and under £10,0001090,50019,000  
£10,000 and under £15,00082854,564220,000220,000
£15,000 and under £20,00014222,896115,000  
£20,000 and under £50,00018474,950140,000245,000
£50,000 and over4870,0004700,0003450,000
    Totals2,1236,626,32924832,30010523,600

There has been a considerable change in the amounts of nominal capitals of private companies registered during the past ten years. Companies with nominal capitals of under £1,000 and also those of £10,000 and over have decreased in relative numbers in a comparison of the 1949 and 1939 figures. The following table shows the numbers of companies registered expressed as percentages of the total registrations for the year. These figures refer to private companies only.

Amount of Nominal Capital.1939.1949.
 Per Cent.Per Cent.
Under £1,00033.924.0
£1,000 and under £5,00048.059.4
£5,000 and under £10,0008.611.2
£10,000 and over9.55.4
    Totals100.0100.0

The next table shows the number and nominal capital of each of the three classes of companies registered during the last six years.

Year.Private Companies.Public Companies.Overseas Companies.
Number.Nominal Capital.Number.Nominal Capital.Number.Nominal Capital.
  £ £ £
19444511,408,2161382,000  
19457203,196,54118114,000372,100
19461,4148,102,471132,846,2508116,000
19471,7816,203,885233,257,0009428,650
19481,7297,319,98231924,1508950,000
19492,1236,626,32924832,30010523,600

In comparing one year with another, as in the following table, it should not be overlooked that re-registrations on account of reconstruction of companies or for other reasons are included. Such re-registrations may have a considerable effect on the year's total, where large companies are concerned.

Year.Number.Nominal Capital.

*Refer letterpress.

  £
19308936,702,675
19317958,283,581
19328126,865,769
19338307,300 999
1934933200,739,139*
193581024,238,018
19369429,934,903
19378886,113,476
19388246,575,619
19396818,910,167
19403913,779,277
194128811,245,789
1942198961,397
19432701,547,364
19444641,490,216
19457413,382,641
19461,43511,064,721
19471,8139,889,535
19481,7689,194,132
19492,1577,982,229

Overseas companies which filed documents, as required by Part XII of the Companies Act, 1933, are included in the above table. The extraordinarily high figure for 1934 is due to the inclusion of overseas companies (numbering 187 and with an aggregate nominal capital of £193,023,363) which previous to 1934 had established places of business in New Zealand and which were required to deliver documents to the Registrar of Companies before 1st October, 1934.

Companies Carrying on Business.—Statistics of companies carrying on business have been compiled on four occasions, for the years 1926, 1932, 1938, and 1947. For the two earlier years, companies on the register at the 31st December were included. In the 1938 and 1947 tabulations, endeavours were made to eliminate those companies which were in liquidation or in a more or less moribund condition. As there was often no positive evidence available to show whether or not a company was in active operation, the statistics probably include a small proportion of companies which were only nominally carrying on business.

A summary of the principal information available in respect of public and private companies at 31st December of the years shown is given below.

At 31st December.Number.Nominal Capital.Subscribed Capital.Paid-up Capital.Amount Owing Under Charges.Shareholders' Funds.

*Not available.

  £££££
Private Companies
19263,43936,060,343****
19326,08348,363,106****
19387,39955,793,621*49,270,54420,460,066*
194711,36187,108,389*78,037,58126,184,045*
Public Companies
19261,63089,544,85858,807,51949,982,59316,181,126*
19321,73297,553,57871,021,73659,106,90215,453,164*
19381,626100,172,97873,170,41164,932,44617,477,939*
19471,387106,123,02181,740,80572,952,83916,444,466112,713,482

The main feature disclosed by the figures is the tendency in recent years to obtain registration as a private company rather than as a public company. In 1926 there were twice as many private companies as public companies, but in 1947 there were nine private companies for each public company. From 1939 to 1947 inclusive 6,083 private and 142 public companies were registered.

The increases in capital do not necessarily measure the amount of now capital invested, since many registrations of new companies represent the conversion of previously existing individual or partnership concerns into companies, or the reforming of a company by the liquidation of the existing company and the registration of a new one.

Details of “shareholders' funds” were obtained for public companies in the 1947 compilation. Similar data were not available for private companies since the Companies Act, 1933, makes provision for the filing of balance-sheets by public companies but not by private companies. As the term “shareholders' funds” is not self explanatory, it may be mentioned that shareholders' funds consist of paid-up capital plus reserves for general purposes. Provisions for specific purposes, bad debts reserves, depreciation reserves, and others of a similar nature, including, do not come within the scope of shareholders' funds. Accumulated losses, establishment accounts, &c., have been treated as negative reserves and deducted from shareholders' funds.

In addition to the public and private companies covered above, there were 250 overseas companies operating in New Zealand at 31st December, 1947, compared with 212 in 1938. These had a total nominal capital of £224,807,042 (the corresponding 1938 figure was £195,934,469), but there is no information showing the amount of capital employed in New Zealand, which obviously must be only a very small proportion of the amount shown.

The district in which the company is registered in most cases coincides with the area in which the company operates. In a few instances the company now transacts business in a different district, and the larger companies frequently operate either throughout the whole of New Zealand or a substantial part of it. Nevertheless, the figures given in the next two tables record with reasonable accuracy the amounts of company capital employed in the various districts at the 31st December, 1947.

District.Private Companies.
Number.Nominal Capital.Paid-up Capital.Amount Owing Under Charges.
  £££
Auckland3,88223,866,93321,742,0699,266,139
Gisborne134880,266853,214265,152
Hawke's Bay5813,377,0983,293,8031,165,967
Taranaki3031,654,1801,525,046623,696
Wellington3,38133,883,69829,093,9207,627,373
Marlborough89476,997438,468240,239
Nelson2001,317,0921,266,530432,061
Westland176879,729825,020181,369
Canterbury1,41111,594,90110,419,4273,705,691
Otago8056,991,4786,550,8152,116,888
Southland3992,186,0172,029,269559,470
    Totals11,36187,108,38978,037,58126,184,045
District.Public Companies.
Number.Nominal Capital.Subscribed Capital.Paid-up Capital.Amount Owing Under Charges.Shareholders' Funds.
  £££££
Auckland37543,119,34231,735,51229,501,2345,473,37642,303,694
Gisborne18763,402495,157385,177294,508522,144
Hawke's Bay501,928,3181,828,7971,461,336364,4612,854,965
Taranaki872,070,3031,786,6251,671,942739,3423,075,068
Wellington33630,001,28623,568,89021,401,6274,44,00029,556,143
Marlborough12102,86279,07572,91027,716137,811
Nelson29760,467582,048558,006117,964853,601
Westland35995,0001,630,500634,05574,197838,948
Canterbury19212,830,0209,435,6718,815,8072,843,11418,625,107
Otago15011,474,4588,921,1267,116,9301,797,63811,919,376
Southland1032,077,5631,677,4041,333,815298,1502,026,625
    Totals1,387106,123,02181,740,80572,952,83916,444,466112,713,482

The following tables give the data, for private and public companies separately classified according to the amount of the nominal capital at the same date.

Amount of Nominal Capital.Private Companies.
Number.Nominal Capital.Paid-up Capital.Amount Owing Under Charges'.
  £££
Under £1,0002,032910,631875,0861,325,184
£1,000 and under £2,0002,3762,925,0392,773,9051,768,117
£2,000 and under £3,0001,7013,701,1843,239,9061,257,531
£3,000 and under £4,0001,0603,339,8402,902,2441,623,760
£4,000 and under £5,0006032,510,1372,213,8441,234,066
£5,000 and under £6,0007593,852,1463,372,1531,405,827
£6,000 and under £7,0004352,665,1572,342,6471,293,851
£7,000 and under £8,0002701,965,2111,754,072966,829
£8,000 and under £9,0002141,741,1151,585,721489,933
£9,000 and under £10,000107977,117884,246538,020
£10,000 and under £20,0001,04912,669,69411,174,2024,339,930
£20,000 and under £30,0003467,695,4437,011,5841,754,631
£30,000 and under £40,0001494,712,5374,541,4011,594,785
£40,000 and under £50,000552,318,7132,091,978567,842
£50,000 and under £100,0001096,546,4546,129,4662,539,379
£100,000 and over9628,577,97125,145,1263,484,360
    Totals11,36187,108,38978,037,58126,184,045
Amount of Nominal Capital.Public Companies.
Number.Nominal Capital.Subscribed Capital.Paid-up Capital.Amount Owing Under Charges.Shareholders' Funds.
  £££££
Under £1,0006926,65924,31821,88451,57070,636
£1,000 and under £2,0006580,88060,06849,98919,277136,484
£2,000 and under £3,00093197,424146,994123,48849,620340,365
£3,000 and under £4,00052160,651126,110108,26973,716232,277
£4,000 and under £5,00028113,05088,28684,06828,104134,016
£5,000 and under £6,00073367,235274,077239,41899,982485,417
£6,000 and under £7,00035215,153182,271171,51946,536300,365
£7,000 and under £8,00029208,720234,479218,07957,646315,325
£8,000 and under £9,00031251,830210,187191,009107,903325,626
£9,000 and under £10,00011100,46073,66861,01260,17093,732
£10,000 and under £20,0002543,217,8242,791,6872,288,195853,7123,554,193
£20,000 and under £30,0001483,340,9253,211,0962,413,137901,5693,614,222
£30,000 and under £40,000792,467,3792,088,4472,026,798736,1972,994,640
£40,000 and under £50,000421,738,7091,549,8341,459,619515,2622,014,708
£50,000 and under £100,0001579,693,7548,234,9627,559,4903,190,08110,336,367
£100,000 and over22183,942,36862,444,32155,936,8659,653,21187,765,106
    Totals1,387106,123,02181,740,80572,952,83916,444,466112,713,482

It will be observed that 65 per cent. of the public companies have nominal capitals of £10,000 and over, and that the numbers in the £100,000 and over group are only exceeded by the companies in the £10,000—£20,000 class. As far as capitals, &c., are concerned, companies with capitals of £100,000 and over are of overwhelming importance in the public company fields. With both public and private companies taken into consideration, shareholders of those companies in the £100,000 and over class own over 50 per cent. of the total paid-up capital of all companies.

The smaller public companies—those with nominal capitals of under £10,000—appear to have relatively rather larger reserves than the larger companies. Shareholders' funds are approximately twice the amount of paid-up capital in case of the smaller companies against the one and one-half average of the larger companies.

The outstanding feature in connection with the amount owing under charges, is that both public and private companies with nominal capitals of £100,000 and over reveal a much lower ratio of charges to paid-up capital than the average of all other companies. The amount owing under charges is the total amount of the indebtedness in respect of all mortgages and charges which are required to be registered with the Registrar of Companies.

In 1938 and again in 1947 companies were classified according to the type of business. The classifications used were not identical, the 1947 one being based on the United Nations' classification of industries. Results of the 1938 classification were published in the 1940 and 1941 issues of the Year-Book, but the figures given there are not comparable with the condensed version of the present classification which appears in the next table.

A strictly accurate classification of type of business or industry was not practicable since the main source of information is the company's memorandum of association, and this document usually empowers the company to carry out a great diversity of objects. Each company was therefore classified according to what appeared to be its principal activity. This was checked as far as possible from other sources of information and, while a high degree of accuracy is not claimed, the classification is thought to be of sufficient accuracy to be useful.

In many cases companies carry on more than one type of business. It was not practicable to apportion, even approximately, the company's capital among its activities, and the main object only was considered in determining the classification.

The table hereunder shows the industry grouping of the companies functioning at 31st December, 1947.

Industry GroupPrivate Companies.Public Companies.
Number.Nominal Capital.Number.Nominal Capital.
  £ £
Agriculture and live-stock production3372,932,94513334,790
Forestry, hunting, and fishing2541,604,8942913,133,427
Mining and quarrying1361,276,196714,224,950
Manufacturing—    
  Food, drink and tobacco4378,146,55535814,585,022
  Apparel, textiles, and footwear5824,691,973414,450,853
  Metals and metal products9534,667,636492,616,640
  Other1,21811,565,81013415,349,434
Construction6532,158,1996140,000
Electricity, water, gas, and sanitary services437,500192,398,402
Commerce—    
  Wholesale and retail trade4,13429,433,90619416,425,799
  Other1,26713,087,08028423,680,094
Transport, storage, and communication6252,708,457977,539,156
Community services7604,795,238911,219,454
Other12,000125,000
    Totals11,36187,108,3891,387106,123,021

ESTATES PASSED FOR DEATH DUTY.—Information concerning the rates of estate and succession duties, generally referred to by the collective title of “death duties,” together with the amount of revenue received therefrom will be found on pages 491–493. Various particulars of the estates passed for such duties are contained in the following tables. The first table shows the number and value of estates finally passed during the years 1945 to 1949 inclusive, classified according to amount. Estates of Maoris were included up to and including the year 1947, the numbers of such estates for the years 1945, 1946, and 1947 being 200, 184, and 108 respectively.

Amount.1945.1946.1947.1948.1949.
Number of Estates
Under £5003,2043,2732,7661,6231,203
£500 and under £1,0001,9491,8791,8311,179707
£1,000 and under £2,0001,7651,8551,7491,386965
£2,000 and under £3,000788821768597672
£3,000 and under £4,000424467426320408
£4,000 and under £5,000268292307202260
£5,000 and under £7,500371438439312503
£7,500 and under £10,000217216252164270
£10,000 and under £15,000199227216152265
£15,000 and under £20,000788810367103
£20,000 and over146141164102192
    Totals9,4099,6979,0216,1045,548
Amount.1945.1946.1947.1948.1949.
Aggregate Net Value of Estates
 £££££
Under £500766,275781,983690,281403,442292,669
£500 and under £1,0001,421,8391,368,8841,343,358856,548518,589
£1,000 and under £2,0002,513,1092,635,8722,501,4311,969,7311,405,021
£2,000 and under £3,0001,931,0512,004,2431,869,6201,454,4711,666,349
£3,000 and under £4,0001,465,6931,628,7501,474,0011,102,3521,398,803
£4,000 and under £5,0001,195,8901,310,3761,367,588904,3681,167,259
£5,000 and under £7,5002,268,9442,666,9172,680,1271,907,4453,138,123
£7,500 and under £10,0001,860,3431,860,2122,171,9041,419,5482,318,388
£10,000 and under £15,0002,385,9072,790,1052,606,1521,814,5493,215,981
£15,000 and under £20,0001,327,8671,499,5821,759,1381,142,2321,768,813
£20,000 and over6,944,7285,917,6986,350,6723,728,2557,034,272
    Totals24,081,64624,464,62224,814,27216,702,94123,924,267

From 1948 additional information regarding occupation, New Zealand debts, and New Zealand mortgages owing has been compiled. The next table shows, according to the size of the estate, the amounts of New Zealand debts, and of New Zealand mortgages owing, for the years 1948 and 1949.

Net Value of Estate.1948.1949.
New Zealand Debts.New Zealand Mortgages Owing.New Zealand Debts.New Zealand Mortgages Owing.
 ££££
Under £50095,462205,32577,580167,561
£500 and under £1,00071,138182,17748,96292,310
£1,000 and under £2,00090,445206,23895,381219,125
£2,000 and under £3,00057,810130,87485,863145,899
£3,000 and under £4,00049,120102,83059,669131,817
£4,000 and under £5,00035,84089,24555,322112,885
£5,000 and under £7,50073,078144,474165,436266,338
£7,500 and under £10,00037,22780,766113,126243,780
£10,000 and under £15,00069,82480,788154,885214,337
£15,000 £20,00056,97334,65187,06074,426
£20,000 and over60,390115,023353,998241,707
    Totals697,3071,372,3911,297,2821,910,185

The net values of the estates, plus New Zealand debts and New Zealand mortgages owing, substantially equal the gross values of the estates. There are a few instances where overseas debts and mortgages are involved, but these are insignificant in total. The figures for debts include the funeral expenses of the deceased. Average New Zealand debts and mortgages owing per estate were respectively £114 and £225 for 1948, and £234 and £344 for 1949.

An analysis of estates by the occupation of the deceased person was commenced for the year 1948. The results for that year, and also for 1949, by occupational groups are given in the next table.

Occupational Groups.1948.1949.
Number.Net Value of Estate.Number.Net Value of Estate.
  £ £
Fishermen and trappers1623,6651051,145
Agricultural and pastoral1,0374,690,8161,1167,007,504
Forest occupations1214,92069,436
Miners and quarrymen5562,4124827,752
Workers in stone, clay, and earthenware, &c.32,593622,991
Workers in processes relating to chemicals, animal and vegetable products, n.e.i.617,7041581
Workers in non-precious metals, electric fittings, &c.167346,051140376,765
Workers in precious metals, jewellery, scientific instruments, &c.8110,0871487,714
Workers on ships, boats, and conveyances2188,4131637,755
Workers in fibrous materials, textiles other than clothing or dress2046,1941165,119
Workers in clothing and dress5781,5175074,696
Workers in harness, saddlery, and leather-wear (excluding boots and shoes)1649,091920,981
Workers in food, drink, and tobacco63222,48744290,300
Workers in wood n.e.i.72214,54143109,116
Workers in paper, printing, photographers, &c.3168,2772682,252
Workers in other materials24,292150
Workers in building, construction and maintenance of roads, &c.289549,998231642,394
Workers in production or supply of gas, water, electricity, or power1212,10468,640
Workers in transport and communication249418,760246539,999
Financial and commercial occupations3981,849,0564342,857,246
Persons engaged in public administration104296,74070351,925
Clerical and professional occupations4121,175,2664431,979,040
Occupations connected with entertainment, sport, and recreation1935,63016135,790
Personal and domestic occupations, hotelkeeping, &c.121267,66977247,293
Other or ill-defined occupations2,8375,898,6282,4428,872,314
Persons not actively engaged in gainful occupations77156,0304225,469
    Totals6,10416,702,9415,54823,924,267

The higher age-groups predominate in estates of deceased persons, and a large-proportion are “retired” at the date of death. All retired persons have been classified according to the former occupation, if known. In the returns from which these statistics are derived the occupations of females are almost invariably described as “wife,” “widow,” or “spinster.” These have been included in the “other” or ill-defined class and account for the disproportionately large numbers in that class.

The table below shows for the period 1945 to 1949 the total number of estates, classified according, to age of deceased and amount of estate. These figures are inclusive of “nil” estates, but exclusive of Maoris.

Age-group.Under £500.£500 to £999.£1,000 to £1,999.£2,000 to £2,999.£3,000 to £3,999.£4,000 to £4,999.£5,000 to £7,499.£7,500 to £9,999.£10,000 to £14,999.£15,000 to £19,999.£20,000 and over.Totals.
Under 5 years4 1        5
5 and under 105          5
10 and under 15911        11
15 and under 2039156 111    63
20 and under 257163221292564523211,215
25 and under 304553632026618112031231,144
30 and under 35304206200582712236226846
35 and under 402471691365632152071415702
40 and under 452661521566549242917553771
45 and under 5041024123798654050281710111,207
50 and under 55566323356185905179333718181,756
55 and under 6084551757223113189150646234502,745
60 and under 651,17876587240622115622712210541584,151
65 and under 701,4671,0211,109506311197280198151591065,405
70 and under 751,4871,0981,143613339203326210193791195,810
75 and under 801,3839951,071569307207334189192671325,446
80 and under 851,066720798382254189276130148641184,145
85 and under 9056234544525112085151958734682,243
90 and under 951801291748743344131301532796
95 and over3930301610788334158
Unspecified334114702612595717590
  Totals11,5627,5267,7083,6402,0361,3302,0291,1481,05743774139,214
  Percentage29.519.219.69.35.23.45.22.92.71.11.9100.0

CINEMATOGRAPH THEATRES.—The statistics of cinematograph theatres shown hereunder relate only to' picture-theatres, and do not purport to show employees, revenue, and expenditure of the motion-picture industry as a whole. In particular, the full revenue and expenditure in connection with screen advertising, and also head-office expenses of controlling companies (including such items as interest on debentures and mortgage charges), unless recovered from exhibitors, are not recorded in the statistics. The item “Rent” under “Theatre Expenditure” does not represent the rental value of all theatres, but only the rent paid where theatres were leased or rented. The collection of statistics relating to cinematograph theatres was inaugurated in 1938–39, and continued annually until 1945–46; there was no collection in 1946–47 and 1948–49. The principal data for the last three years available are given below.

 1945–46.1947–48.1949–50.

* Adult admission charges (excluding amusements-tax).

† Including amusements-tax.

I.e., Shop rentals and rents received in respect of cinematograph theatres let for other purposes.

§ Representing rent paid; not including rental value of freehold premises.

|| See explanatory letterpress on previous page.

Theatres (number)568570600
Persons engaged—   
    Males (number)1,5431,4911,416
    Females (number)1,7701,7821,699
    Total (number)3,3133,2733,115
Salaries and wages paid—   
    To males (£)322,132348,128379,898
    To females (£)208,634217,044242,943
    Total (£)530,766565,172622,841
Seating-accommodation—   
    Seats at under 1s. 6d.* (number)64,43253,41648,000
    Seats at 1s. 6d.* (number)151,926156,177159,463
    Seats at 2s.* (number)43,17947,24950,446
    Seats at over 2s.* (number)14,40913,91814,586
    Total seats available (number)273,946270,760272,495
Paid admissions during year (number)36,965,77134,078,34936,353,171
Theatre revenue—   
    Admission receipts (£)2,817,6462,634,7302,789,696
    Screen advertising (£)61,25896,038111,373
    Rentals and other receipts (£)54,51378,258117,863
    Total theatre revenue (£)||2,933,4172,809,0263,018,932
Theatre expenditure—   
    Salaries and wages (£)530,766565,172622,841
    Film hire (£)851,779759,354768,185
    Freight (£)37,94842,52447,110
    Advertising (£)159,017176,396194,312
    Amusements-tax (£)131,199123,034135,684
    Rent§ (£)324,137315,588291,826
    Repairs and maintenance (£)89,987155,212142,590
    Depreciation (£)49,32948,64073,800
    Other expenses (£)294,337279,451341,223
    Total theatre expenditure (£)||2,468,4992,465,3712,617,571

The main feature of the latest statistics is the rise of 2,300,000 or 6.7 per cent. in the number of paid admissions over those recorded in the previous survey in 1947–48. This represents an average of 19.2 visits to the theatre in 1949–50, on a population basis, as against 18.8 in 1947–48. Total admissions in 1949–50, 36.4 million, were the third highest on record, 37.0 million being recorded in 1945–46 and 38.3 million in 1943–44.

An analysis of theatre revenue in 1949–50 shows that admission charges amounted to 92.4 per cent. of the total, screen advertising to 3.7 per cent., and other revenue to 3.9 per cent. The chief items on the expenditure side were as follows: Film-hire, 29.3 per cent.; salaries and wages, 23.8 per cent.; theatre rent, 11.1 per cent.; advertising, 7.4 per cent.; repairs and maintenance, 5.4 per cent. Amusements-tax at £135,684 represented 5.2 per cent.

Disregarding differences in admission prices for adults and children and for evening and matinee performances, the average price of admission has been calculated by dividing total admission receipts by the total number of paid admissions. The average admission charge works out at 18.4d., ranging from 15.9d. in the Nelson Provincial District to 19.9d. in Taranaki. The average charge in 1947–48 was 18.6d.

The next table shows a classification of theatres, according to number of screening days per week, and of circuit operators for the 1949–50 year.

Screening.Theatres.Persons Engaged.Salaries and Wages.Seating-accommodation.Paid Admissions.Average Admission Charge.*

* Including amusements-tax.

 No.No.£No. of Seats.No.d.
Six days per week2022,328530,485170,57230,672,26719.0
Odd days per week22965172,49469,8984,479,32915.4
Circuit16913619,86232,0251,201,57516.2
    Totals6003,115622,841272,49536,353,17118.4

A classification of theatre revenue and expenditure on a similar basis is now given.

Screening.Theatre Revenue.Theatre Expenditure.*
Admission Receipts.*Screen Advertising.Other.Total.

*Including amusements-tax.

 £££££
Six days per week2,421,89092,411103,4122,617,7132,264,132
Odd days per week286,57914,31510,521311,415274,905
Circuit81,2274,6473,93089,80478,534
    Totals2,789,696111,373117,8633,018,9322,617,571

The 37 circuit or itinerant operators in 1949–50 screened in 169 theatres or halls.

PATENTS, DESIGNS, AND TRADE-MARKS.—The total number of applications for the grant of letters patent and for the registration of designs and trade-marks during the calendar year 1949 was 3,531, which was 606 less than the previous year.

Patents.—The number of applications for letters patent in 1949 was 1,984, as compared with 2,469 in 1948 and 2,753 in 1947.

The applications received during 1949 may be broadly classified as follows: Mechanical engineering, 443; electronics, 419; chemistry, 262; primary industries, 344; building construction, 202; and miscellaneous, 314.

Approximately three-fifths of the applications for letters patent came from overseas. New Zealand with 804 applications held the lead from Great Britain (519), followed by the United States of America (311), and Australia (175), with the remainder (175) distributed among twenty-one different countries.

Trade-marks.—The number of applications in respect of trade-marks during 1949 was 1,292, as compared with 1,439 in 1948 and 1,670 in 1947. Classes 5 (pharmaceutical, veterinary, and sanitary substances) and 25 (clothing) again predominated with 134 and 172 applications respectively; and they were followed by Class 24 (tissues-piece-goods), 114; Class 3 (soaps, cosmetics, &c), 92; Class 9 (electrical apparatus), 61; Class 16 (paper and paper articles, &c.), 60; and Classes 7 (machines and machine tools) and 30 (groceries) each with 55.

The countries from which the applications originated were: Great Britain, 465; New Zealand, 458; Australia, 152; United States of America, 118; with the remainder (99) distributed between eighteen other countries.

Renewal of the registration of 1,144 trade-marks was effected during the year.

Designs.—Applications for the registration of designs in 1949 totalled 255, as compared with 229 in 1948 and 237 in 1947. The total number of applications since the inception of design registration in New Zealand is 6,095.

The following table shows the number of applications for patents and for the registration of trade-marks and designs in each of the last eleven years.

Year.Patents.Trademarks.Designs.
19391,821694137
19401,277626108
19411,214534108
19421,10439860
19431,38467861
19442,045924104
19452,6511,320188
19463,0251,766351
19472,7531,670237
19482,4691,439229
19491,9841,292255

The total receipts of the Patent Office for 1949 amounted to £24,118, of which patent fees amounted to £18,072; trade-mark fees, £5,778; design fees, £166; and sale of publications, £102. Payments during 1949 amounted to £19,563, leaving a surplus of £4,555.

INSPECTION OF MACHINERY.—The Boilers. Lifts, and Cranes Act, 1950, and the Machinery Act, 1950, which replaced the former Inspection of Machinery Act, 1928, and its amendments, are designed to promote the safety of life and limb in the operation of steam boilers, digesters, other steam-pressure vessels, and air-receivers; hydraulic, electric, and other lifts: all types of power-driven cranes and power-driven machinery on land; and machinery used on vessels afloat that are not self-propelled. Nothing in the Acts apply to any machinery driven by manual or animal power, or to any machinery the motive power of which does not exceed one horse-power. Machinery which is used exclusively for farming purposes and does not exceed six horse-power is also exempt from annual inspection.

Boilers, pressure-vessels, air-receivers, lifts, and cranes are required to be of approved design and workmanship, and the moving parts of machinery must be adequately guarded.

All boilers and machinery are inspected and certificated once per year and lifts twice per year. It is illegal to work a boiler or other pressure-vessel or any machinery, including a crane or a lift, which does not carry a current certificate of inspection issued by either the Marine Department or the Labour and Employment Department.

Particulars of inspections of boilers and machinery during the years ended 31st March, 1949 and 1950 were as follows:—

Boiler inspections—  
 1948–49.1949–50.
  Fired boilers5,2604,730
  Air-receivers5,1936,240
  Other unfired pressure vessels6,3486,360
      Total boilers16,80117,330
Machinery inspections—  
  Lifts3,6653,696
  Cranes729744
  Hoists1,9882,182
  Machines driven by steam power7,2706,426
  Machines not driven by steam power88,28795,530
  Electric-power supply station units63152
  Tractors269299
      Total machinery102,271109,029
      Grand totals119,072126,359

New boilers, new air and gas receivers, and new unfired pressure vessels inspected in 1949–50 for the first time totalled 684 units, while machinery inspections included 54 cranes and 14 lifts inspected for the first time.

The Acts provide that where loss of life or serious bodily injury to any person occurs by reason of the explosion of a boiler, or as a result of an accident caused by machinery, the explosion or accident must be reported by the owner, and the cause investigated by an Inspector of Machinery. There were no boiler explosions during the years 1948–49 and 1949–50. The number of accidents reported as caused by machinery were 4 fatal and 107 non-fatal in 1949–50, as compared with 10 fatal and 124 non-fatal accidents in 1948–49.

Revenue and expenditure in connection with inspection of machinery for the last five years available have been as follows:—

1944–45.1946–47.1947–48.1948–49.1949–50.
Revenue—     
 £££££
  Inspection fees, &c.23,82625,48926,24430,41331,838
  Examination fees, &c.449759439639543
      Totals24,27526,24826,68331,05232,381
Expenditure27,96539,23635,28036,25636,713

The Boilers, Lifts, and Cranes Act, 1950, also provides for the issue of certificates to those who pass the prescribed examinations for land engineers and engine-drivers in charge of boilers and machinery, for winding-engine drivers for mining purposes, for drivers employed on locomotives working on railway-lines not under the control of the Government Railways Department, and for the drivers of traction-engines on roads. Certificates are also issued to electric-tram drivers, as provided by the Tramways Amendment Act, 1910, and cable tram-drivers' certificates in pursuance of section 75 of the Statutes Amendment Act, 1946. The issue of these certificates is controlled by a Board of Examiners set up under the Act, the Chairman being the Chief Inspector of Machinery.

The total number of candidates examined during the year 1948–49 was 626, and in 1949–50, 532. Of these candidates, 520 were successful in the earlier year quoted, and 445 in the latter year.

VALUE OF PRODUCTION.—Complete statistics covering all phases of production are not available; and, in compiling the following statistics, estimates of production have been made in several cases where direct data are not obtainable. Since statistical information as to production in each of the major productive activities is readily available, the items for which estimates must be made are, with the exception of one group of commodities, relatively unimportant. Although the value of products made in the home—e.g., home-made clothing, jams, kitchen-garden products, &c.—must, in the aggregate, account for a considerable annual value, it is impossible to estimate with any reasonable degree of accuracy the value of such production, which is, on this account, omitted from the statistics of the value of production.

It should be noted that production of material commodities only is taken into consideration in these statistics.

The general principle followed in assessing values has been to value products as near as possible to the actual point of production. For example, live-stock is valued at “on the hoof” prices, while values at the factory are used in the case of factory products. In some few cases, however, reliable data as to values at or near the point of production cannot be obtained; and in these cases export valuations or wholesale price quotations have been used in assessing values. Although absolute uniformity of treatment in the basis of valuation as between different commodities has not been possible, the basis of valuation gives comparable aggregate values for the period covered. The statistics thus afford a fairly accurate indication of fluctuations in the value of production from year to year, although the absolute figures for any individual year must be regarded as an approximation only.

Since the basis of valuation is (as far as possible) at the point of production, transport costs are only partly represented in the values shown, while the accretions to the value of commodities caused by the services of retailers and other distributors of finished products are not included in the statistics.

In classifying the value of production into the principal groups care has been taken to avoid duplication, products of one group which constitute the raw material of another group being counted once only. For example, the gross value of agricultural products in 1948–49 is estimated at £40,600,000; but, as the major part of these products was utilized for the purpose of adding value to live-stock, the net value only (£18,500,000) is classified under the heading “Agricultural,” since live-stock and live-stock products are included in either the “Pastoral” or the “Dairying, &c.,” group.

Products have been classified into the groups to which they most logically belong from a production point of view, butter and cheese, for example, being classified under “Dairying, &c.,” and not as factory products. The figure shown under the heading “Factory” is the aggregate value added to materials by the process of manufacture, excluding industries which are already included in other groups (e.g., butter and cheese making, meat-freezing, fish-curing, and saw-milling). The total value of output of factory industries is included in cases where the materials are produced in New Zealand and are not already included as production in some other group.

The estimates of value of production from the year 1900–01 onwards are quoted in the following table and are in terms of New Zealand currency. A global estimate-such as this, is from its nature, subject to amendment from time to time as additional data on production become available, and improvements in technique are effected. Minor amendments in the estimates are incorporated in the figures appearing hereunder.

VALUE OF PRODUCTION

Year.Agricultural.Pastoral.Dairying, Poultry, and Bees.Total Farming Groups.Mining.Fisheries.Forestry.Factory.Building and Miscellaneous.Totals (All Groups).

* Provisional.

 £(m.)£(m.)£(m.)£(m.)£(m.)£(m.)£(m.)£(m.)£(m.)£(m.)
1900–014.112.23.720.02.90.12.05.43.533.9
1905–064.317.25.326.84.20.12.66.85.345.8
1910–114.020.47.431.84.60.22.88.15.953.4
1915–167.631.111.550.24.80.31.99.75.472.3
1920–218.829.426.264.43.10.44.618.68.499.5
1921–229.528.321.859.62.90.54.517.28.793.4
1922–238.130.825.264.13.00.44.518.010.3100.3
1923–247.132.724.664.43.20.54.719.211.9103.9
1924–258.143.326.277.63.10.54.820.812.7119.5
1925–268.432.025.265.63.20.64.722.314.0110.4
1926–278.831.824.765.33.50.54.023.014.8111.1
1927–289.638.527.275.33.60.53.522.813.9119.6
1928–299.942.429.381.63.60.53.424.013.1126.2
1929–309.135.628.473.13.70.63.625.613.9120.5
1930–318.824.422.255.43.60.52.923.311.597.2
1931–328.019.221.949.13.40.41.718.610.183.3
1932–338.920.321.250.43.40.41.717.710.183.7
1933–348.731.722.562.93.50.42.018.611.098.4
1934–357.928.023.058.93.80.42.620.710.396.7
1935–369.233.828.871.84.00.43.023.211.4113.8
1936–378.846.333.388.44.00.53.626.712.7135.9
1937–388.640.135.183.84.20.64.130.0131135.8
1938–399.236.736.081.94.40.64.030.514.7136.1
1939–4010.138.037.986.04.90.64.433.515.4144.8
1940–4110.147.840.898.75.10.64.537.114.4160.4
1941–4211.246.539.697.35.40.64.541.214.8163.8
1942–4312.647.838.298.65.30.65.045.215.5170.2
1943–4414.047.237.798.95.70.75.349.415.9175.9
1944–4515.456.144.9116.45.80.75.452.016.4196.7
1945–4615.156.441.3112.86.00.96.155.619200.4
1946–4715.664.950.9131.46.41.06.661.723.12.02
1947–4815.780.458.9155.06.31.18.770.824.4263
1948–49*18.584.066.3168.86.91.210.577.027.8292.2

The total value of production reached a record level of £292,200,000 in 1948–49, and recorded an increase of £25,900,000, or 9.7 per cent., as compared with the previous year. Compared with the pre-war year, 1938–39, there has been an increase of £156,100,000, or 114.7 per cent.

The total estimated value of farm production for 1948–49 was £168,800,000, an increase of £13,800,000 or of 8.9 per cent. over the previous year's estimate. In comparison with the year 1938–39 farm production increased in value by £86,900,000, or by 106.1 per cent. The increase in volume of farm production over this period amounted to 17 per cent., so that the main factor contributing to the increase ever 1938–39 was higher prices.

All the individual groups showed record levels for value in 1948–49, the group showing the greatest relative increase over the previous year being agricultural production due to increased yields of wheat, oats, grass and clover seed, and fruits.

The building and miscellaneous group in 1948–49 reflects the increased activity in the building and construction industry in that year, while the factory group shows for both value and volume a continuation of the upward trend. It should be borne in mind that the amount shown as factory production in the value of production statistics does not include the value of production in the industries processing primary products. Production in such cases is credited to the appropriate primary-production group (dairying, pastoral, forestry, &c.).

VOLUME OF PRODUCTION.—The method of computation of the volume series is somewhat involved and is based on figures of physical volume of output where available (as for practically all farm, mining, forestry, and fishery production). For factory industries, quantity figures—either of products or of materials used—have been utilized where available, and in the case of other factory industries a figure closely indicative of volume movements has been arrived at by assessing the number of man-hours worked. In the case of some of the industries where the above methods are not appropriate, an estimate of volume of production is assessed by applying to the cost of materials used or of products an index of wholesale prices of the principal materials or products of the particular industry.

Information as to the number of dwellinghouses erected, classified according to number of rooms, is normally available, and from a consideration of this data, value figures for other classes of building activity have been converted into equivalent dwelling-or room-units. The composite total of actual and equivalent dwelling- or room-unite is a sufficiently reliable indicator of actual volume of building production to permit of its incorporation in an index measuring the year-to-year movement in the volume of total production. Similarly, for those physically productive occupations (representing only a small percentage of aggregate production) not included in any of the groups mentioned above, a reasonably close approximation of movement is afforded by a consideration of the numbers of men engaged, with allowance for changes in working-hours and also for the relative productive output of different classes of labour.

The following table gives figures of value, and index numbers of value and volume of production, for the principal headings.

VALUE AND VOLUME OF PRODUCTION Base of index numbers: 1938–39 (= 100)

Year.Farm.Factory.*Total (Including Other).
Value.Index Number of Volume.Value.Index Number of Volume.Value.Index Number of Volume.
Total.Index Number.Total.Index Number.Total.Index Number.

*Excluding factory industries included in other groups.

† Provisional.

 £(m.)  £(m.)  £(m.)  
1928–2981.61007924.07968126.29377
1929–3073.1898325.68472120.58981
1930–3155.4688423.3766597.27178
1931–3249.1608418.6615683.36175
1932–3350.4629617.7585783.76183
1933–3462.9779918.6615998.47287
1934–3558.9729620.7686996.77187
1935–3671.88810123.27676113.88493
1936–3788.410810426.78890135.910099
1937–3883.810210430.09895135.8100100
1938–3981.910010030.5100100136.1100100
1939–4086.010510233.5110110144.8106105
1940–4198.712111637.1122114160.4118113
1941–4297.311911141.2135117163.8120110
1942–4398.612010845.2148122170.2125109
1943–4498.912110549.4162129175.9129108
1944–45116.414211352.0170132196.7145114
1945–46112.813810755.6182136200.4147112
1946–47131.416011061.7202146230.2169118
1947–48155.018911370.8232159266.3196123
1948–49168.820611777.0252163292.2215129

A measure of relative productivity is afforded by the next table, which gives figures and index numbers of value and volume of production in total and per head of population.

VALUE AND VOLUME OF PRODUCTION

Year.Mean Population, Year ended 30th June.Value of Production.Volume of Production.
Total.Per Head.Index Numbers 1938–39 (= 100).Index Numbers 1938–39 (= 100).
Total.Total.Per Head.Total.Per Head.

* Not available.

† Provisional.

  £(m.)£    
1900–01812,01033.941.72550**
1905–06929,06645.849.33459**
1910–111,050,01453.450.93961**
1915–161,150,37272.362.85375**
1920–211,258,31399.579.17394**
1925–261,399,583110.478.98194**
1930–311,504,02297.264.671777884
1935–361,568,432113.872.684869396
1936–371,582,244135.985.910010299101
1937–381,598,570135.885.0100101100101
1938–391,616,650136.184.2100100100100
1939–401,636,680144.888.5106105105103
1940–411,634,238160.498.1118117113111
1941–421,631,375163.8100.4120119110109
1942–431,639,407170.2103.8125123109108
1943–441,641,433175.9107.2129127108106
1944–451,673,378196.7117.5145140114110
1945–461,729,897200.4115.8147138112105
1946–471,782,253230.2129.2169153118107
1947–481,822,565266.3141.1196174123109
1948–491,861,183292.2157.0215186129112

INDUSTRIAL EFFICIENCY.—In keeping with modern trends of industrial planning and organization in overseas countries, the Legislature of New Zealand introduced in 1936 a measure designed “to promote the economic welfare of New Zealand by providing for the promotion of new industries in the most economic form and by so regulating the general organization, development, and operation of industries that a greater measure of industrial efficiency will be secured.” This legislation became operative as the Industrial Efficiency Act, 1936, and under it the Bureau of Industry was constituted.

The Bureau of Industry, which moots at frequent intervals, is composed of both “ordinary” and “special” members, appointed by the Minister of Industries and Commerce. The “ordinary” members are Government officers who are appointed because of some special knowledge or qualifications appropriate to the administration of the Act. “Special” members are those who have been appointed to represent manufacturing industries and agricultural and pastoral industries.

The Industrial Efficiency Act charges the Bureau with a number of functions, the principal of which is the making of recommendations to the Minister for the administration of the Act. In addition to its advisory functions, the Bureau is the licensing authority under the Act, and besides preparing plans for industries it is charged with maintaining a continuous survey of industries, of industrial finance, and of industrial methods, as well as collaborating with the Department of Scientific and Industrial Research and the New Zealand Standards Institute. One of its further functions is to consider and make recommendations to the Government on applications by industrial enterprises for financial assistance from the State.

The Act provides for the formulation of an industrial plan for the organization of any industry or of related industries. Prior to October, 1940, only two industrial plans, relating to the pharmacy and flax industries respectively, had been brought into operation. In that month, however, the Licensed Industries General Regulations were introduced, with a view to facilitating the preparation of plans and to serve as the basis for the plans. Since then a plan for the footwear industry has been brought into operation.

An industrial plan sets out, for the most part in general terms, what might be described as a code for the better organization of the industry, and defines the functions of the industrial committee, which is appointed in each case to administer the plan. Such a plan cannot be put into operation until a majority of those engaged in the industry indicate their acceptance, and where a plan is accepted the Act provides for the appointment of an industrial committee representing the employers, the workers, and the Government.

It is, however, the portion of the Act relating to industrial licensing that has engaged the greater attention of the Bureau of Industry. Licensing involves control being exercised over the entry of new units into the respective industries, as well as the imposition of appropriate conditions on licences in order to ensure that the industry is being carried on by licensees in a manner calculated to conform to industrial efficiency and national interest.

Provision is made in the Act for all decisions of the Bureau of Industry to be subject to appeal by persons who consider themselves aggrieved by the decisions, and this section of the Act has been availed of to a considerable extent. The appeals are heard by an appeal authority appointed by the Governor-General.

As an indication of the extent to which businesses have become subject to the Industrial Efficiency Act, it may be mentioned that there are about 4,800 licensed units, made up mainly of the distributive or semi-distributive industries. There are licensed some 4,000 resellers of motor-spirits and 606 pharmacists. So far as manufacturing industries are concerned, the total number of units is not large, many licensed industries having less than six units, while others range up to one hundred and fifteen.

On 31st March, 1950, the following twenty-five industries were subject to licensing under the Industrial Efficiency Act:—

  • Manufacture of agar for sale.

  • Manufacture of apple-juice for sale.

  • Manufacture of products consisting of a combination of asbestos and cement.*

  • The business of a pharmaceutical chemist carried on in any shop or place of business.

  • Manufacture of cigarette-papers.*

  • Manufacture of colloidal sulphur.*

  • Manufacture for sale or export of hand-shovels.*

  • Manufacture, from linseed, of oil or oil cake for sale.

* Removed from control in 1951.

  • Manufacture of macaroni for sale.*

  • Manufacture of malt-extract.

  • Importation and/or wholesale distribution of motor-spirits.

  • Retail sale and distribution of motor-spirits.

  • Manufacture of nails.

  • Extraction from fish-livers of nutritional or medicinal oils.

  • Manufacture of paper-pulp or paper products.

  • Milling of phormium tenax.

  • Preservation of fish for sale in hermetically sealed cans, jars, or other containers.*

  • Manufacture of electric ranges, including the assembly of parts thereof.

  • Manufacture of rennet.

  • Manufacture of bituminous roofing-material for sale. Manufacture of rope and twine.*

  • Manufacture of rubber tires and tubes for all typos of vehicles.

  • Manufacture of salt for sale.*

  • Manufacture of wooden heels for footwear.

  • Manufacture of paua (Haliotis iris) shell for sale.

The descriptions of the industries listed above in many cases serve only in a general way to indicate the scope of the industries licensed, full details being available in the relevant licensing notices.

*Removed from control in 1951.

GENERAL ELECTIONS.—The 1949 general election of parliamentary representatives was held in November of that year, voting in New Zealand for Maori electorates taking place on the 29th, and for European electorates on the 30th. A summary of the European electorates for the 1949 and the four preceding elections is shown below. In the normal course a general election would have taken place in 1941, but on account of war conditions the life of Parliament was extended until 1943.

1935.1938.1943.1946.1949.

*Including votes recorded by members of Armed Forces.

Number of votes recorded for candidates elected442,716550,121495,380*591,399*609,584
Number of votes recorded for Candidates defeated385,079367,563415,990*419,688*425,486
Number of informal votes6,8876,3739,957*7,999*6,724
    Total number of votes recorded834,682924,057921,327*1,019,086*1,041,794
Percentage of votes recorded for candidates elected, to total valid votes recorded53.4859.9554.3558.4958.89
Total number of electors on civilian roll (where contest)919,798995,1731,000,1971,081,8981,113,852
Number of districts where no contest  2  
Percentage of civilian votes recorded to total number of civilian electors on roll90.7592.8582.8293.4693.53
Percentage of votes recorded for candidates elected to total number of electors on civilian roll46.1355.2849.5354.6654.73
Number of electors voting as absent voters38,77641,63335,89848,67347,867
Number of electors exercising postal votes9,79617,32418,12824,92025,895
Number of electors voting as members of the Armed Forces92,9347,908   

The numbers of electors on the European roll in 1949 was 1,113,852, of whom 547,893 were men and 565,959 were women. The relative interest in the poll evinced by men and women may be measured by the number of votes recorded to the number on the roll—viz., men, 514,599 (93.92 per cent.) and women 527,195 (93.15 per cent.). A strict comparison with the results of the 1946 election is not possible owing to the fact that the names of a considerable but unknown proportion of the 7,908 electors—the great majority of whom were men—who exercised their votes as members of the Armed Forces were included in the civilian roll. In the pre-war election of 1938 the number of men who voted was 469,285, 93.43 per cent. of the number on the roll, while comparative figures for women were 454,772 and 92.27 per cent. respectively.

A statement of voting in individual electorates at the general election in 1949 is now given.

Electoral Districts and Names of Candidates.Number of Votes Recorded.Number of Electors on Roll.Adult Population at Census, 1945.

*Includes Chatham Islands.

Arch Hill   
  Parry8,399  
  Smith3,225  
  Wilcox343  
  Informal58  
    Totals12,02512,75414,237
Ashburton   
  Gerard7,642  
  Rose5,257  
  Informal188  
    Totals13,08713,69013,981
Auckland Central   
  Anderton5,863  
  Bradley3,064  
  Jones73  
  Mitchell237  
  Informal106  
    Totals9,3139,88814,252
Aron   
  Kinzett5,284  
  Mathison9,877  
  Informal124  
    Totals15,28516,54714,097
Awarua   
  Herron7,997  
  Pickering4,818  
  informal80  
    Totals12,89513,81113,742
Bay of Plenty   
  Santon5,313  
  Sullivan8,993  
  Informal105  
    Totals14,41115,41914,008
Brooklyn   
  Birchfield241  
  Burns4,220  
  Fraser7,176  
  Informal111  
    Totals11,74813,09614,005
Buller   
  McDonald5,735  
  Skinner7,941  
  Informal12  
    Totals13,78814,84114,491
Central Otago   
  Bodkin8,457  
  Rodgers4,551  
  Informal87  
    Totals13,09514,29713,888
Christchurch Central   
  MacFarland7,589  
  Marlow3,952  
  Ostler218  
  Informal77  
    Totals11,83613,15714,159
Clutha   
  Roy8,133  
  Informal78  
    Totals13,11314,12014,146
Dunedin Central   
  Connolly6,813  
  Murdoch5,824  
  Informal69  
    Totals12,70613,52714,619
Eden   
  Curran4,925  
  Fortune7,184  
  Informal95  
    Totals12,20412,83114,044
Egmont   
  Corbett8,693  
  Richmond4,154  
  Informal743  
    Totals12,92113,69813,879
Fendalton   
  Gilmour565  
  Holland8,362  
  Newman4,286  
  Informal68  
    Totals13,28114,41913,866
Franklin   
  Massey9,635  
  Parsons4,154  
  Informal82  
    Totals13,87114,91513,866
Gisborne   
  Dudfield7,045  
  Keeling7,534  
  Informal82  
    Totals14,71015,41914,441
Grey Lynn   
  Faulkner3,159  
  Hackett7,362  
  Lee2,627  
  Informal64  
    Totals13,21214,00213,625
Hamilton   
  Granville6,047  
  Ross7,652  
  Informal76  
    Totals13,77514,51513,912
  Hastings   
  Cullen6,983  
  Jones7,965  
  Informal83  
    Totals15,03116,09714,347
Hauraki   
  Peacock4,566  
  Sutherland8,510  
  Informal77  
    Totals13,15314,11713,933
Hawke's Bay   
  Beattie4,964  
  Harker8,406  
  Informal57  
    Totals13,42714,51814,418
Hobson   
  Lane4,212  
  Smith9,280  
  Informal77  
    Totals13,56915,04914,374
Hurunui   
  Gillespie7,952  
  Smith5,417  
  Informal65  
    Totals13,43414,39713,990
Hutt   
  Heatley5,880  
  Nash8,153  
  Simpson100  
  Informal66  
    Totals14,19915,48013,715
Invercargill   
  Denham6,738  
  Hanan7,897  
  Informal72  
    Totals14,70715,41214,275
Island Bay   
  Childs4,565  
  McKeen7,335  
  Smith184  
  informal86  
    Totals12,17013,71414,027
Karori   
  Bowden8,367  
  Harris4,782  
  Informal104  
    Totals13,25314,49514,145
Lyttelton   
  Beauchamp6,780  
  McCombs758  
  Informal79  
    Totals14,61715,824*14,637
Manawatu   
  Oram8,174  
  Rodgers4,741  
  Informal83  
    Totals12,99814,00013,711
Marlborough   
  Shand7,861  
  Wilson5,999  
  Informal56  
    Totals13,91614,57114,143
Marsden   
  Murdoch8,746  
  Ross5,470  
  Informal99  
    Totals14,31515,26814,135
Miramar   
  Semple7,193  
  Stanton229  
  Taylor5,878  
  Informal63  
    Totals13,36314,57014,018
Mornington   
  Hannan208  
  Hudson9,282  
  Stephens5,097  
  Informal75  
    Totals14,66215,48714,532
Mount Albert   
  Freer7,295  
  Judson6,364  
  Informal209  
    Totals13,86814,58013,904
Mount Victoria   
  Hyde94  
  Marshall6,562  
  Seddon4,754  
  Informal128  
    Totals11,53812,83914,135
Napier   
  Armstrong7,384  
  Brown126  
  Cummins118  
  Tucker6,663  
  Informal81  
    Totals14,37215,03914,229
Nelson   
  Marshall7,047  
  Neale8,420  
  Informal50  
    Totals15,51716,29714,602
New Plymouth   
  Aderman8,250  
  Barker6,733  
  Informal100  
    Totals15,08315,58914,291
North Dunedin   
  Brickell6,522  
  Marston109  
  Walls7,190  
  Informal73  
    Totals13,89414,53714,040
North Shore   
  Eyre7,835  
  Finlay6,491  
  Informal125  
    Totals14,45115,06814,362
Oamaru   
  Hayman7,415  
  Nordmeyer6,721  
  Informal64  
  Total14,20014,95014,593
Onehunga   
  Coates5,955  
  Osborne8,255  
  Stanley198  
  Informal77  
    Totals14,48515,65813,963
Onslow   
  Combs9,391  
  Meadowcroft7,464  
  Informal105  
    Totals16,96018,20913,896
Otahuhu   
  Dixon7,218  
  Gotz8,493  
  Informal118  
    Totals15,82916,44514,165
Otaki   
  Capstick8,166  
  Maher8,540  
  Informal92  
    Totals16,79817,79414,156
Pahiatua   
  Holyoake8,663  
  O'Leary4,156  
  Informal62  
    Totals12,88113,89414,125
Palmerston North   
  Tennent7,368  
  Wilson6,850  
  Informal93  
    Totals14,31115,26013,987
Parnell   
  Rue6,255  
  Schramm5,295  
  Smith131  
  Informal54  
    Totals11,73512,49713,982
Palea   
  Finer5,961  
  Sheat7,802  
  Informal85  
    Totals13,84814,78414,106
Petone   
  Croft5,194  
  Moohan7,721  
  Quinn207  
  Informal68  
    Totals13,19014,19613,651
Piako   
  Goosman9,599  
  Kenah3,333  
  Informal90  
    Totals13,02214,13114,087
Ponsonby   
  Jamieson169  
  Kingston5,161  
  Macdonald7,439  
  Smith140  
  Informal131  
    Totals13,04013,77414,156
Raglan   
  Baxter6,824  
  Johnstone7,846  
  Informal96  
    Totals14,76615,32513,799
Rangitikei   
  De Malmanche4,791  
  Gordon8,101  
  Informal109  
    Totals13,00113,92513,565
Remuera   
  Algie8,878  
  Watt3,799  
  Informal81  
    Totals12,75813,65514,005
Riccarton   
  Lake5,906  
  McLagan8,613  
  Taylor204  
  Informal121  
    Totals14,84416,06314,349
Rodney   
  Learning5,080  
  Webb9,626  
  informal78  
    Totals14,78415,65513,971
Roskill   
  Freeman5,957  
  Langstone1,097  
  Rae7,372  
  Informal87  
    Totals14,51315,32413,854
St. Albans   
  Manning6,193  
  Watts7,335  
  Informal52  
    Totals13,58014,51813,885
St. Kilda   
  Jones7,310  
  Lyon6,979  
  Informal65  
    Totals14,35415,08014,258
  Selwyn   
  McAlpine8,205  
  Sharp6,878  
  Informal103  
    Totals15,18616,03513,772
Sydenham   
  Howard9,246  
  Moody603  
  Informal105  
    Totals12,95414,29614,199
Taranaki   
  Halstead8, 364  
  Jordan123  
  Skinner7,269  
  Informal86  
    Totals15,84216,46013,527
Tauranga   
  Doidge9,330  
  Pickett4,735  
  Informal115  
    Totals14,18015,51513,634
Timaru   
  Carr7,364  
  Lockington6,532  
  Informal80  
    Totals13,97614,62813,634
Waikato   
  Burfitt3,499  
  Sim9,422  
  Informal72  
    Totals12,99314,28613,842
Waimarino   
  Kearins7,319  
  MacPherson7,117  
  Informal92  
    Totals14,52815,68313,545
Waimate   
  Davison5,659  
  Hayes217  
  Kidd7,426  
  Informal66  
    Totals13,36814,04113,734
Wairarapa   
  Cooksley7,596  
  Hansen6,633  
  Informal51  
    Totals14,28014,87214,265
Waitakere   
  Jackson386  
  Mason8,341  
  Tapper7,411  
  Informal111  
    Totals16,24917,13114,232
Waitomo   
  Broadfoot9,026  
  Kitts3,947  
  Informal70  
    Totals13,04314,07613,848
Wallace   
  Freeman3,868  
  MacDonald8,379  
  Informal76  
    Totals12,32313,37413,832
Wanganui   
  Cotterill7,336  
  O'Keefe6,317  
  Informal60  
    Totals13,71314,86314,008
Wellington Central   
  Appleton4,503  
  Chapman5,078  
  Informal89  
    Totals9,67010,94414,045
Westland   
  Kent8,013  
  Mitchell338  
  O'Regan5,269  
  Informal127  
    Totals13,74714,60814,620

The votes polled for each candidate and the total number on the roll in the four Maori electoral districts at the General Election of 1949 were as follows:—

Electoral Districts and Names of Candidates.Number of Votes Re-corded.*Number on Roll.

*Includes declaration votes of electors not on roll.

Eastern Maori  
  Alfred Thomas Carroll5,276 
  Tiaki Omana8,487 
  Informal252 
    Totals14,01512,781
Northern Maori  
  James Tau Henare3,812 
  Mahuika Otene93 
  Pene Tuwhare30 
  Tapihana Paraire Paikea6,841 
  Informal127 
    Totals9,9038,697
Southern Maori  
  Eruera Tihema Tirikatene970 
  Huro Nathaniel Mates283 
  Informal19 
    Totals1,2721,355
Western Maori  
  Graham Ngahina Matthews326 
  Herewini Te Moananui Hovell120 
  Hoeroa Taraua Utiku Marumaru2,752 
  Iriaka Matiu Ratana9,069 
  Kataraina Nutana219 
  Rangi Makawe Rangitaura115 
  Rehe Rewi Maniapoto Amohanga113 
  Taueti Tana122 
  Tauwhare Te Wirihana302 
  William Uruteangina Wakarua154 
  Informal267 
    Totals13,65912,063

By-election.—Since the general election of 1949, a by-election was necessitated in the Brooklyn Electorate, the cause of the vacancy being the death of the sitting member, the Right Hon. P. Fraser, P.C., C.H. The by-election held on the 17th February, 1951, resulted in the election of Hon. A. H. Nordmeyer as the new member.

LICENSING.—The principal Act dealing with licensing is the Licensing Act, 1908, and its amendments. An important recent amendment is the Licensing Amendment Act, 1948, which provides for the establishment of a Licensing Control Commission with general functions of:—

  1. Generally to supervise the activities of Licensing Committees in the performance of their functions:

  2. To prescribe standards to be complied with in the provision of accommodation, services, and other facilities for the public and for lodgers, guests, or employees in licensed premises:

  3. To control the Licensing Fund (established by this Act):

  4. To review from time to time the distribution of publicans', accommodation, tourist-house, and wholesale licences throughout New Zealand:

  5. To determine what publicans', accommodation, tourist-house, and wholesale licences are unnecessary, and the amount of compensation to be paid in respect of the cancellation thereof:

  6. To determine the number of new publicans', tourist-house, and wholesale licences to be issued in each licensing district, and, subject to the provisions of this Act, the situation of the premises in respect of which such licence are to be granted:

  7. To determine the fair price to be paid in respect of new publicans', tourist-house, and wholesale licences:

  8. To grant club charters:

  9. To make recommendations to the Minister as to the expediency of amending the Licensing Acts.

In addition, the Commission shall have such other functions as are conferred on it by this or any other Act.

The amending Act provides that no now accommodation or New Zealand wine licences are to be granted.

The total number of publicans' licences for the time being in force is not to exceed the number at present in force on the passing of the Act, plus (a) an additional twenty, (b) the number granted in place of accommodation licences, (c) the number granted after the passing of this Act as a result of a determination of electors of any no-licence district at a poll under section 8 of the Licensing Amendment Act, 1910, and (d) the number grunted pursuant to Part VI of the 1948 amendment (i.e., special polls of electors in the Ashburton, Geraldine, and King-country areas). This total number may be increased whenever the results of any periodical census or any statistics published under the Census and Statistics Act, 1926, show that the population of New Zealand has exceeded by at least fifty thousand persons the population at the time of passing this Act, or since the Commission last authorized an increase in the number of licences under this provision. The Commission may authorize such new licences on this account as it thinks fit, but not so as to exceed one licence for every complete; ten thousand of the increase in population.

Wholesale licences are not to exceed in number one for every complete ten thousand of the population of New Zealand, while tourist-house licences for the time being in force are not to exceed twenty-five.

The 1948 amendment provided that the Commission shall review the distribution of the three classes of licences quoted as soon as practicable after the passing of the Act, and may do so also from time to time after this initial review, with the proviso that a review must be done at least once in each succeeding period of ten years.

Various provisions were also given in respect of procedure, surrender of licences, compensation, appeals, brewers' licences, &c.

New kinds of licences which can be granted by Licensing Committees in addition to those provided for in the principal Act are tourist-house licences and works canteen licences. It is of interest to note these may be granted in respect of premises situated in any proclaimed area. The licence fee for each of the two classes is £10.

The 1948 amendment also permits the Licensing Commission to grant charters to clubs subject to certain conditions, and, in addition, includes provision for the granting of temporary charters in the King-country.

The same legislation removed certain restrictions which had existed for many years with regard to the sale and supply of liquor to Maoris, by enabling Maori women to be supplied with liquor on licensed premises, and the sale and supply of liquor to Maori men for consumption off the premises.

The first annual report of the Licensing Control Commission covers the ten months from 1st June, 1949, to 31st March, 1950. During that period the Commission reviewed in the licensing districts dealt with a total of 238 publicans' and accommodation licences and 13 wholesale licences. Rebuilding was ordered in 20 cases, and the ordering of improvements in 38 instances. The following table shows the number of licences in force and those available for authorization at the 31st March, 1950.

Publicans' and Accommodation Licences.Tourist-house Licences.Wholesale Licences.
Number of licences allowable under sections 27 (1), 28 (1) and (2), Licensing Amendment Act, 19481,11825191
Number of licences in force at 1st June, 19491,098 141
Number of licences available for authorization at 1st June, 1949202550
Number of licences authorized, 1st June, 1949, to 31st March, 195017127
Number of licences available for authorization at 31st March, 195031343

NOTE.—Licensed premises in the Trust Areas of Invercargill and Masterton are not included in the above figures, as such areas are outside the jurisdiction of the Commission.

During the ton months ended 31st March, 1950, 106 applications had been filed for the grant of club charters. Of these, 41 had been heard hut decisions had not been released, and 1 had been withdrawn.

The Licensing Control Commission during the year prescribed the minimum general standards for new hotels, these standards being intended eventually to cover all hotels, under the following headings: (a) general—means of egress; (b) bedrooms—facilities, space, ventilation, &c.; (c) bathrooms and lavatories—number in relation to number of guests; (d) heating; and (e) bars—cleanliness.

A statement showing the annual fees payable for the various classes of licence is given on page 785 of the 1947–49 issue of the Year-Hook.

The Licensing Amendment Act, 1948, also contained provisions for a referendum to be taken on the question of hours for sale of liquor in hotel bars, local restoration polls in no-licence districts, and a proposal that licences for sale of liquor be issued in the King-country. In the latter two cases voters were required to record their vote either for or against Trust Control. The referendum taken on the 9th March, 1949, resulted in the retention of the existing hours during which hotels are open for the sale of liquor in hotel bars—i.e., between 9 a.m. and 6 p.m. The voting was 473,768 in favour of the six o'clock closing and 153,850 for the alternative proposal of a total of nine hours between 10 a.m. and 10 p.m. Local restoration was carried at polls held on the 9th March, 1949, in the special areas of Ashburton and Geraldine, and in both instances the majority vote was for Trust control. In the King-country poll held on the same date, though there was a marked preponderance of European voters in favour of restoration, the corresponding Maori majority was not large enough to ensure the requisite two-thirds of the Maori valid votes.

National Licensing Polls.—The licensing poll of 30th November, 1949, held in conjunction with the parliamentary elections, was the eighth at which the three issues—national continuance, State purchase and control, and national prohibition (without compensation)—were submitted to the electors. Official figures of the 1949 poll, together with those of the four preceding polls, are as follows:—

 1935.1938.1943.1946.1949.
For national continuance621,167546,995529,386542,681660,573
For State purchase and control57,49996,131123,701202,664135,982
For national prohibition243,091263,208269,800259,162268,567

A noticeable feature of the foregoing figures is the decline in the number of votes recorded for State purchase and control in the 1949 poll, following on an increase recorded at each of the three polls prior to that date. This issue received 10.6 per cent. of the total votes in 1938, 13.4 per cent. in 1943, 20.2 per cent. in 1946, and only 128 per cent. in 1949. National continuance reached 63.4 per cent. in 1935, since when it fell gradually to 54.0 per cent in 1946, but recovered substantially, at the expense largely of the State purchase and control vote, to 62.0 per cent. in 1949. Votes cast in favour of national prohibition amounted to 47.3 per cent. in 1925, but fell heavily at each of the next two polls, reaching 29.6 per cent. in 1935. There was little variation in this percentage in 1938 and 1943, but further falls to 25.8 per cent. and 25.2 per cent. were recorded in 1946 and 1949 respectively.

The voting results in each licensing district in 1949 were as follows (informal votes not being shown):—

Licensing District.For National Continuance.For State Purchase and Control.For National Prohibition.

*Includes declaration votes of electors not on roll.

Arch Hill6,9302,2592,612
Ashburton8,0861,1063,630
Auckland Central5,7601,8351,565
Avon9,3062,0893,741
Awarua7,048564,398
Bay of Plenty8,2082,8173,247
Brooklyn7,2251,8822,418
Buller9,5001,7202,377
Central Otago8,2019173,813
Christchurch Central7,5631,6432,487
Clutha7,0621,1334,679
Dunedin Central7,7571,3343,406
Eden6,4311,5773,987
Egmont9,1618502,776
Fendalton8,4831,2793,392
Franklin7,3681,5764,734
Gisborne8,9222,1823,211
Grey Lynn7,3412,6313,076
Hamilton7,8962,2013,483
Hastings9,8581,5193,526
Hauraki8,0801,5643,329
Hawke's Bay9,5911,2012,549
Hobson7,9411,8183,638
Hurunui8,6391,1263,562
Hutt8,6012,2913,189
Invercargill8,5971,0014,950
Island Bay7,4681,9032,596
Karori8,3721,6743,016
Lyttelton8,9721,8233,688
Manawatu8,2221,1343,478
Marlborough9,4811,2633,038
Marsden7,9652,4583,703
Miramar8,2731,8123,049
Mornington8,6721,7794,044
Mount Albert6,8802,3574,131
Mount Victoria7,2651,4762,622
Napier9,5311,4903,210
Nelson10,2121,3153,842
New Plymouth9,4821,6115,809
North Dunedin7,7311,5084,515
North Shore8,2492,4158,615
Oamaru7,2791,4846,182
Onehunga7,7072,7083,917
Onslow10,4502,7803,553
Otahuhu8,5492,5774,523
Otaki10,7942,2543,496
Pahiatua9,1348032,841
Palmerston North8,8441,6003,694
Parnell7,3031,8752,416
Patea9,4691,0908,152
Petone8,2532,2472,550
Piako8,1201,2253,551
Ponsonby7,5642,3762,929
Raglan8,4052,7443,401
Rangitikei8,7918253,254
Remuera7,5641,4333,619
Riccarton9,2651,8693,585
Rodney8,3612,1634,095
Roskill7,8082,2094,289
St. Albans8,1431,3613,950
St. Kilda8,5121,4624,214
Selwyn9,5161,5303,994
Sydenham7,8221,7343,274
Tamaki8,8742,7453,921
Tauranga8,0572,0243,911
Timaru8,5571,2363,985
Waikato8,2541,4253,171
Waimarino10,2742,2421,869
Waimate8,3511,0313,839
Wairarapa9,3151,4603,310
Waitakere8,9812,6804,327
Waitomo9,2621,3062,351
Wallace7,6707473,793
Wanganui8,66513,453
Wellington Central6,7881,3811,351
Westland9,2441,9232,223
Eastern Maori*8,7182,3312,190
Northern Maori*5,9781,2632,170
Southern Maori*813184215
Western Maori*8,3331,8012,928
    Totals660,573135,982268,567

It may be noted from the table that Maori electors were given for the first time equal rights with European electors to vote on the issues of continuance, national prohibition, and State control at general elections as provided for by the Licensing Amendment Act, 1949.

Local Option.—In the no-licence districts an additional issue is submitted to the electors—viz., restoration of licences—three-fifths of the valid votes cast being required for the carrying of the proposal. The voting for each of the ten districts for 1949 is given herewith.

No-licence District.For Restoration of Licence.For No Licence.Number of Valid Votes Recorded.
Auckland Suburbs9,5329,43518,967
Clutha4,7253,8388,563
Eden5,9239,39615,319
Grey Lynn7,8439,20717,050
Mataura5,4764,3149,790
Oamaru5,9385,55611,494
Roskill7,94912,86320,812
Wellington East6,9928,38215,374
Wellington South6,6025,69512,297
Wellington West7,2068,48915,695
    Totals68,18677,175145,361

A new departure in regard to the conduct of the liquor trade in New Zealand was inaugurated by the Invercargill Licensing Trust Act, 1944, which established a Trust of six members to be appointed from time to time by the Governor-General. The functions of the Trust according to the Act are to provide accommodation and other facilities for the travelling public within the Invercargill Licensing District, to establish and maintain hotels and suitable places within the district for the sale or supply of refreshments, to sell and supply intoxicating liquor within the district, and to establish and maintain premises for that purpose. The not profits arising from the operations of the Trust may be expended or distributed by the Trust for the promotion, advancement, or encouragement of cultural and recreational philanthropic purposes within the Southland Land District.

Following the result of the poll in the M No-licence District in 1946, the electors were given the opportunity of recording their was as to whether they desired a form of Trust control or otherwise. The district was divided into three areas, the Akitio County, the Borough of Eketahuna and the Eketahuna County, and the southern area consisting of the Borough of Masterton, the Mauriceville County, and those portions of the counties of Masterton, Wairarapa South, and Castlepoint which are included in the district. Polling took place on 28th May, 1947, and Trust control was carried in the southern area but was defeated in the other two areas, which are predominantly rural. Legislation providing for the constitution of the Masterton Licensing Trust to control the southern area was passed during the 1947 session of Parliament.

As a result of special licensing polls held on the 9th March, 1949, under the authority of the Licensing Amendment Act, 1948, in the Ashburton and Geraldine Areas, the restoration proposal was carried by the necessary three-fifths majority in each case. A majority of the valid votes cast was also in favour of Trust control, and by virtue of the Licensing Trusts Act, 1949, the Ashburton Licensing Trust and the Geraldine Licensing Trust were established and Trust districts of similar title constituted. The 1949 Act quoted also provided for the declaration of a district to be a Trust district whenever at any local restoration poll taken in a no-licence district the electors have determined in favour of the proposal that a local Trust be established to conduct hotels and sell intoxicating liquor in that district.

LOTTERIES.—Under section 42 of the Gaming Act, 1908, as amended by the 1949 amendment, the Minister of Internal Affairs may grant permission (subject to such conditions as he thinks fit) for the disposing by raffle or chance of any painting, drawing, sculpture, or other work of art, or literature, or mineral specimen, or mechanical model. The Gaming Amendment Act, 1949, made several important changes in the law relating to raffles. Major changes include provisions enabling real and personal property to be raffled, licences being formerly issued only for works of art and mineral specimens; authority is given to authorized members of the Police Force to issue raffle licences where an individual prize does not exceed £10 in value, and where the total value of the prizes does not exceed £25; and authorized members of the Police Force may from time to time approve organizations to conduct raffles provided the value of the prizes in any raffle does not exceed £5. By the Stamp Duties Amendment Act, 1931, any such licence granted for the raffling of mineral specimens in excess of £100 value is subject to a lottery duty of 10 per cent. of the nominal value of all tickets represented in the drawing of the lottery, whether such tickets have been disposed of by way of sale or otherwise. Information as to receipts from this source will be found in Section 25B—Taxation.

The Gaming Act also permits sweepstakes and art-unions (as defined) under certain specified conditions.

During the year ended 31st March, 1950, 634 licences were issued under the authority of section 42 of the Act. In addition, 13 licences were issued in respect of the regular £5,000 art-unions. The aggregate results of these regular art-unions for the last seven years have been as follows:—

1943–44.1944–45.1945–46.1946–47.1947–48.1948–49.1949–50.
Number of lotteries12131313131313
Gross sales £251,675273,803280,240293,464273,867286,494281,405
Commission on sales £37,75141,07142,03644,02041,08042,97442,208
Expenses £30,85433,71533,47534,66132,91231,94833,102
Prizes £60,00065,00065,00065,00065,00065,00065,000
Net proceeds £123,070134,017139,729149,783134,875146,572141,084
Lottery duty £25,16827,38028,02429,34627,38628,64928,138
Net profit £97,902106,637111,705120,437107,489117,923112,946

Of the net profits in 1948–49, £39,918 was distributed to the various mayoral or other recognized central funds established for the relief of distress, £32,410 to charitable and philanthropic organizations, £9,855 to children's health camps, and £5,000 to the Council of Organizations for Relief Service Overseas, and £19,740 to the Cultural Fund.

COMPULSORY MILITARY TRAINING REFERENDUM.—The Military Training Poll Act, 1949, provided for a poll of electors upon the proposal that provision be made for compulsory military training. The poll was conducted on the 3rd August, 1949, and resulted as follows:—

For compulsory military training568,427
Against compulsory military training160,998
Majority for407,429

TIME SERVICE ARRANGEMENTS.—The following article on the New Zealand time-service arrangements was prepared by Mr. R. C. Hayes, Director of the Seismological Observatory.

One uniform time is kept throughout New Zealand. The following extract from the New Zealand Gazette of 31st October, 1868, contains the Government announcement regarding the standardizing of mean time.

“Colonial Secretary's Office,

“Wellington, 30th October, 1868.

“In accordance with a resolution of the House of Representatives to the effect that New Zealand Mean Time be adopted throughout the colony, it is hereby notified for public information that the time corresponding to the longitude 172° 30' east of Greenwich—which is exactly 11½ hours in advance of Greenwich time—has been adopted as the mean time for the colony; and that from and after the second day of November the public offices of the General Government will be opened and closed in accordance therewith.

“E. W. STAFFORD.”

This New Zealand Mean Time, 11h. 30m. in advance of Greenwich Mean Time (G.M.T.), was observed continuously up to 1927, when on 6th November clocks were advanced 1 hour until 4th March, 1928. The next period of Summer Time was from 14th October, 1928, to 17th March, 1929, but in this, and in subsequent periods clocks were advanced only 30 minutes (to 12h. ahead of G.M.T.). The Summer Time Act of 1929 provided for clocks to be advanced 30 minutes from the second Sunday in October of any year to the third Sunday in March of the following year. By the Summer Time Amendment Act, 1933, the period of Summer Time was extended from the first Sunday in September to the last Sunday in April. This amendment commenced in 1934, when the period of Summer Time was extended until 29th April.

The Daylight Saving Emergency Regulations of 1941 provided for the continuance of Summer Time throughout that year; and its continued observance during subsequent war years was provided for by regulations made annually.

By the Standard Time Act of 1945, the time of the meridian 180° east of Greenwich (12h. in advance of G.M.T.) was adopted as the Standard Time for New Zealand. Thus, what was formerly known as “Summer Time” became “New Zealand Standard Time” as from 1st January, 1946. The times reported in this article are New Zealand Standard Time, unless otherwise stated.

The time throughout New Zealand is controlled by the Seismological Observatory, Wellington. The Observatory signal clock is kept as correct as possible by means of astronomical observations, and by comparison with radio time-signals from observatories in other parts of the world.

The Observatory provides the following time-service:—

(1) RADIO TIME-SIGNALS TRANSMITTED THROUGH STATION ZLW ON A WAVE-LENGTH OF 500 Kc/s (600 METRES) I.C.W.

These signals are transmitted between 10h. 55m. and 11h. 00m. a.m. daily, and are in accordance with the modified ONOGO system. The procedure is as follows:—

At 10h. 55m. 30s., the “Attention” call (— . —), followed by the Observatory call sign ZMO (—— . . —— ———).

From 10h. 56m. 05s. to 10h. 56m. 50s., the letter O (— — —), repeated every ten seconds, except that the third series from 25s. to 30s. consists of a single dash prolonged for five seconds.

From 10h. 57m. 00s. to 10h. 57m. 49s. the letter X (— . . —), repeated every five seconds.

From 10h. 57m. 55s. to 10h. 58m. 00s., First Time Signal, consisting of six dots at intervals of one second.

From 10h. 68m. 08s. to 10h. 58m. 50s., the letter N (— .), repeated every ten seconds.

From 10h. 58m. 55s. to 10h. 59m. 00s., Second Time Signal, consisting of six dots at intervals of one second.

From 10h. 59m. 06s. to 10h. 59m. 50s., the letter G (— — .), repeated every ten seconds.

From 10h. 59m. 55s. to 11h. 00m. 00s., Third Time Signal, consisting of six dots at intervals of one second.

The series of six dots which constitute the actual time-signals are transmitted directly from the Observatory signal clock, which is seldom more than one tenth of a second in error. The remaining signals are for tuning and identification purposes only, and should not be used as precise time-signals. Corrections to the time-signals can be obtained on application to the Seismological Observatory.

(2) RADIO TIME-SIGNALS TRANSMITTED THROUGH THE NEW ZEALAND BROADCASTING SERVICE STATION 2YA

Time-signals are supplied to the New Zealand Broadcasting Service for transmission through station 2YA. The signals consist of six dots, separated by intervals of one second, the last dot being the exact minute. Each transmission consists of a group of three signals at consecutive minutes, the scheduled times of transmission being as follows:—

  1. 10h. 28m.; 10h. 29m.; 10h. 30m. a.m.

  2. 3h. 28m.; 3h. 29m.; 3h. 30m. p.m.

  3. 7h. 28m.; 7h. 29m.; 7h. 30m. p.m.

  4. 10h. 28m.; 10h. 29m.; 10h. 30m. p.m.

In all cases the time-signals are superimposed on the station programmes, but, in the event of failure or suppression of signals at scheduled times, they are transmitted thirty minutes later if circumstances permit.

In addition to the above official time signals, the 2YA station transmits one series of six dots at each hour from 7 a.m. to 7 p.m., and at 9 p.m.

(3) TIME-SIGNALS BY TELEGRAPH

The Observatory sends time-signals by telegraph to the General Post Office and the Railways Department, Wellington, at 9h. a.m. daily. This signal is transmitted to all telegraph-offices in New Zealand and to all railway-stations in the North Island.

(4) PUBLIC CLOCKS

The Government Buildings clock (Wellington) is checked at 9h. a.m. daily by means of a special circuit between the clock and the Observatory. The error of this clock is usually less than 15 seconds.

An electric synchronous clock, installed at the Observatory, is checked twice daily. Observations show that, under normal conditions of power supply, the variation of the electric clocks amounts to a few seconds only.

TOURIST ATTRACTIONS.—Reference to pages 932–935 of the 1940 Year-Book, or pages 812–815 of the 1939 issue, will give a brief description of the main tourist attractions in New Zealand.

MINERAL WATERS AND SPAS.—For information concerning the mineral waters and spas of New Zealand reference should be made to the 1940 and earlier editions of the Year-Book, which contain a short description of the Rotorua and Te Aroha spas, together with analyses of the more important springs at the latter, while in the 1913 issue of the Year-Book will be found detailed analyses of the various mineral waters throughout New Zealand.

REVIEW OF LEGISLATION, 1949 AND 1950.—Acts passed 1949: public Acts, 52; local Acts, 13; private Acts, 4. 1950; public Acts, 101; local Acts, 13.

The following is a brief synopsis of the more important public Acts passed by the General Assembly during the 1949 session, which ended on 26th October, 1949.

The Military Training Poll Act, 1949, provided for a special poll of electors on the proposal for compulsory military training.

The Transport Licensing Amendment Act, 1949, amends the principal Act by providing that tramway fares, tolls, and charges, and also charges for the carriage of passengers or goods by trackless trolley-omnibus are to be fixed by the Transport Charges Committee.

The Minimum Wage Amendment Act, 1949, increased the minimum wages for workers and repealed the 1947 amendment.

The Industrial Relations Act, 1949, empowers the Minister of Labour to appoint an Industrial Advisory Council, with functions of inquiry into and making reports and recommendations to the Minister on such ways and means of improving industrial relations and industrial welfare as appear practicable, including in particular, such matters as incentive payments, profit-sharing and similar schemes, the safety and health of workers, the provision of amenities, and the establishment of Works Committees and other employer-worker organizations. Power is also given to appoint local and special Advisory Councils with similar functions for any specified industry or locality. Regulations may be made providing for the establishment on a voluntary basis of Works Committees, representative of workers and employers, for the purpose of promoting and maintaining harmonious industrial relations and for the purpose of improving and maintaining the welfare, safety, and health of workers, and prescribing the functions of any such Works Committees. A Conciliation Commissioner is empowered to call compulsory conferences of parties whenever he has reasonable grounds for believing that a strike or lockout exists or is threatened in any district in which he exercises jurisdiction in respect of any matter which is not specifically provided for in any award or industrial agreement.

The Transport Act, 1949, consolidates and amends the law relating to motor-vehicles, to road traffic generally, motor-spirits taxation and mileage-tax, third-party risks insurance, road transport services, and harbour-ferry services. Part I incorporates the provisions of the Transport Department Act, 1929, and other general machinery provisions and the provisions of the Transport Law Amendment Act, 1948, relating to the Transport Co-ordination Council. Part II is concerned with the registration and licensing of motor-vehicles and their drivers, and incorporates the appropriate parts of the Motor-vehicles Act, 1924, and amendments. The annual licence may take the form of new registration-plates or be in such other form as may be prescribed by regulations. Re-registration of a motor-vehicle during the currency of an existing registration is prohibited while a notice of change of ownership is required to be given when a motor-vehicle is repossessed under a hire-purchase agreement. Ambulances are exempt from speed-limits only if fitted with a siren or bell. Part III deals with road traffic including the provisions relating to heavy traffic and the power to make by-laws in respect of these matters. A new section enables regulations to be made providing for the closing of roads on the occasion of vehicle races or trials or other special events. Part IV incorporates without material alteration in substance the provisions of the Motor-spirits Taxation Act, 1927, and amendments, section 6 of the Customs Acts Amendment Act, 1939, relating to the partial refund of duty on motor-spirits used otherwise than as fuel for a motor-vehicle, and section 8 of the Finance Act, 1946, relating to the mileage-tax on motor-vehicles not using motor-spirits. Part V re-enacts the Motor-vehicles Insurance (Third-party Risks) Act, 1928. Part VI relates to passenger services, goods services, and harbour-ferry services and re-enacts the provisions of the Transport Licensing Amendment Act, 1931, and amendments. A Licensing Authority is provided for each harbour-ferry district instead of the former practice whereby the Licensing Authority for the transport district to which the harbour is contiguous functioned as the Licensing Authority for the harbour-ferry district. The Minister may authorize any specified Licensing Authority to exercise jurisdiction in respect of licences which would otherwise come within the jurisdiction of some other Licensing Authority. The maximum period of harbour-ferry service licences is now fixed at ten years. The appointment of the Transport Licensing Appeal Authority and the Transport Charges Appeal Authority is provided for, together with matters relating to appeals thereto; both Authorities are now required to have the same qualifications, and provisions relating to evidence in proceedings before these authorities are now the same in each case. Part VII re-enacts certain miscellaneous provisions which applied generally to the several Acts consolidated in the Transport Act, 1948.

The Physiotherapy Act, 1949, consolidates and amends the Masseurs Registration Act, 1920, and amendments, provides for the change of names from “masseur” to “physiotherapist” and “massage” to “physiotherapy,” and reconstitutes the existing Registration Board. The disciplinary powers of the Board are made discretionary instead of mandatory, and include gross negligence or malpractice, the right of appeal being preserved. The arrangement and machinery clauses of the Act generally follow the Nurses and Midwives Act, 1945.

The Occupational Therapy Act, 1949, makes provision for the registration of occupational therapists. It establishes the Occupational Therapy Board with functions of determining courses of training and instruction, approving hospitals and other institutions at which training may be carried out, conducting examinations, authorizing registrations, &c. The qualifications of applicants for registration and limitations as to age and character, and offences and penalties, are also set out. Part III of the Act is concerned with various aspects of training, and Part IV with miscellaneous provisions including the requirement of annual practising certificates, the disciplinary powers of the Board, appeals from decisions of the Board, offences, and the power to make such regulations as may be necessary or expedient.

The Coal-mines Amendment Act, 1949, provides that certificates of competency as mine-managers or underviewers or foremen-deputies must be endorsed as holding a first-aid certificate granted not more than five years previously. Open-cast mines must be inspected daily within two hours of commencing work, and periodical inspections made of open-cast and other mines. The powers of the Minister of Mines to purchase, sell, store, and process coal are widened. There are also machinery amendments to the Coal Act, 1948.

The Workers' Compensation Amendment Act, 1949, increases the maximum amount of compensation in respect of the death of a worker to £1,750, and where weekly payments of compensation had been made prior to death, to £2,000 before deduction of the excess from the amount payable at death. The maximum weekly rates of compensation for incapacity of a worker is raised to £6. The provisions relating to compensation for permanent physical injuries not included in the Second Schedule to the Act is made applicable to cases where the assessed injury is equal to not less than 5 per cent. of total incapacity instead of the former 10 per cent. Reasonable expenses incurred for transport of workers ordered to submit to examination by medical referees, plus wages for time lost, are provided for by the amendment. The National Airways Corporation and the Linen Flax Corporation are exempted from the provisions as to employers' indemnity in the 1947 amendment, while Commonwealth shipping companies belonging to mutual protecting clubs may be so exempted. The amending Act also repealed those provisions as to liability and indemnity of the principal of a contractor.

The Land and Income Tax (Annual) Act, 1949, fixed the rates of land-tax and income-tax for the tax year commencing 1st April, 1949.

The Anzac Day Act, 1949, declares Anzac Day to be a public holiday, and prohibits the transfer of the holiday to any other day, except under certain conditions.

The Rabbit Nuisance Amendment Act, 1949, widens the powers of Rabbit Boards in regard to taking postal votes on proposals submitted to ratepayers, borrowing, acquiring of land for housing their employees, remitting rates in cases of hardship, and insuring members of the Rabbit Destruction Council against personal accident while engaged in their duties.

The Education Amendment Act, 1949, permits regulations to be made prescribing leave-of-absence conditions, overtime rates, travelling, &c., allowances for Education Board employees not covered by other means. It facilitates borrowing on overdraft by Boards, and enables them to purchase motor-cars for hire or resale to their officers. The accounting year is changed from a calendar year to one ending on the 31st day of January. Other provisions relate to the numbers of members on School Committees and the disposal of a school fund when a school is closed.

The Fire Services Act, 1949, consolidates and amends the existing legislation affecting fire brigades. Its main purposes are to improve the standard of training and co-ordination of the fire service, especially in connection with its operation at serious fires; to improve the financial provision made for the smaller town fire brigades; and to provide an emergency service which will function for rural fire-protection in peacetime and form the nucleus for the fire defence of the country in event of war. The Act sets up a central authority known as the Fire Service Council to be in general control of the fire service and be responsible for its efficiency. The duties of this Council include the carrying-out of research work into fire-service methods and equipment, publication of technical information, inspection of brigades, and establishment of training courses for both officers and men. It may require any Urban Fire Authority to improve the efficiency of its service, and to delegate its functions. The districts within which brigades operate are classified into united urban fire districts, urban fire districts, and secondary urban fire districts, the latter being urban areas in which there is no reticulated water-supply or where the water-supply is below the required standard. The existing system of local administration of fire brigades is retained, the local controlling authorities being designated Urban Fire Authorities to distinguish them from the Rural Fire Authorities set up under the Forest and Rural Fires Act, 1947. Existing Fire Boards are to be retained but no new ones will be set up, except where united urban fire districts are created. The territorial local authority will be established as the Urban Fire Authority instead. Provision is made for the registration of all volunteer and industrial brigades. The Act increases considerably the Government contribution to the cost of the urban fire services, the proportion of expenditure in fire districts becoming Government, 10 per cent.; underwriters, 50 per cent.; and local authorities, 40 per cent. In secondary fire districts the local authority is required to pay at least half the costs. Local authorities pay no contribution to the costs of the Fire Services Council, these being divided between the Government and underwriters. The Fire Service Council is required to prepare and administer a scheme for fire defence, rural fire protection, and reinforcement between brigades at large fires.

The Forests Act, 1949, consolidates and amends the law relating to the management and protection of forests and forest land. The title of Commissioner of State Forests is changed to that of Minister of Forests, and the name of the Department is changed to the New Zealand Forest Service. Provision is made for the creation of forest conservancies and for the appointment of Conservators. The payment to local authorities of a proportion of timber royalties on timber produced on State forest land for road-making purposes is provided for. The Minister is empowered to erect dwellings for officers and employees and to grant tenancies. The margin round State forest land within which it is unlawful to light a fire without proper authority is increased from 20 chains to 1 mile. Leaving smouldering substance on State forest land is made an offence and right holders whose operations are likely to cause fires are required to provide suitable fire-fighting equipment, subject to right of appeal to the Fires Appeal Tribunal.

The duty of persons to extinguish fires on or within a mile of State forest land is set out, and the age of male persons subject to requisition for fire-fighting purposes is raised from sixteen to eighteen years to conform with the provisions of the Forest and Rural Fires Act, 1947.

The costs of fire-fighting incurred by the Forest Service may be charged against an owner on whose land a fire started and endangered State forest land, or against the owner of land whose property was protected by fire-fighting, the owner having the right of appeal against the charge. In fixing the penalty for unlawful cutting or removal of forest produce, a Magistrate is authorized to impose an additional penalty not exceeding three times the value of produce concerned. The provision authorizing the Minister to act as agent for other Ministers or local authorities in charge of forests is extended to include all persons who are owners of forests.

The Patriotic and Canteen Funds Amendment Act, 1949, vests the funds of the National War Funds Council and certain property of the Joint Council of the Order of St. John and the New Zealand Red Cross Society in the New Zealand Patriotic Fund Board, authorizes trustees of war funds to transfer funds to the Board, amends the constitution of the latter, and extends the definition of the term “serviceman.”

The Canterbury Agricultural College Amendment Act, 1949, amends the constitution of the Board of Governors, and the term of office of members of the Board.

The Co-operative Dairy Companies Act, 1949, consolidates and amends the law relating to co-operative dairy companies. It provides for the registration of co-operative dairy companies, no dairy company being entitled to describe itself as co-operative unless entitled to registration under the Act. Existing co-operative dairy companies are to adopt certain articles of association. The memorandum of association is to be read subject to the model articles of association adopted. Alteration of articles of association may affect contracts contained in or evidenced by the articles. The Act provides that only supplying shareholders are entitled to vote, that any non-supplying shareholder may surrender his shares, and for the compulsory surrender of shares under certain conditions. In consideration of the surrender of shares, payment as agreed upon between the company and the shareholder, or in default of agreement, by the Co-operative Dairy Companies Tribunal set up under the Act, is authorized. Surrendered shares are not to exceed one-fifth of the issued shares without the authority of the Tribunal while reissue of surrendered shares is permitted. Certain companies associated with dairy companies may accept the surrender of shares. There is also provision dealing with the forfeiture of shares of untraceable shareholders. Personal representatives, trustees, and others are entitled to take up or retain shares in co-operative dairy companies subject to certain conditions. The Dairy Industry Act, 1908, and amendments is repealed.

The Military Training Act, 1949, provides for compulsory military training in New Zealand and also safeguards the rights of trances in relation to their civil employment. Every male British subject, ordinarily resident in New Zealand, who attains the age of eighteen years on or after 1st November, 1949, is liable to serve in the Armed Forces for a term of whole-time service comprising fourteen weeks' in-camp training, followed by three years' part-time service, during which he is liable for a total of sixty days' training, and thereafter six years in the Reserve. Exemption from service is provided for in the case of persons employed by the Government of any part of the British Commonwealth other than New Zealand, ministers of religion and members of religious orders, mental defectives, totally blind persons, and persons in receipt of invalids' benefits. Every person liable for training is to apply for registration within fourteen days after attaining the age of eighteen years. Provision is made for the medical examination and grading of registered persons and for enlistment in the Armed Forces. Provision is made for Military Service Postponement Committees to determine applications for postponement of service on the grounds of hardship. Any person who conscientiously objects to serving with the Armed Forces or to performing combatant duties may apply for registration as a conscientious objector, the case of any such person being decided by a Conscientious Objection Committee. That Committee is enabled to make orders for payments to the Social Security Fund by conscientious objectors to ensure that their financial position is no better than if they were carrying out training. Part of the Act safeguards employment of the trainee while absent for every period of service or training, including provisions relating to the prohibition of dismissal of workers, rates of remuneration, holidays, and apprentices.

The Education Lands Act, 1949, consolidates and amends the law relating to land held for educational purposes, the Education Reserves Act, 1928, and its 1948 amendment being repealed.

The War Pensions Amendment Act, 1949, increases the maximum rates of war and emergency reserve corps pensions and war veterans' allowances.

The War Pension and Allowances (Mercantile Marine) Amendment Act, 1949, increases the maximum rates of pensions and allowances.

The Counties Amendment Act, 1949, provides that a County Council on petition may constitute county townships. Separate improvement and development rates are permitted in cases where the Council constructs and maintains public works in such townships for the purposes of improving, developing, and maintaining townships as urban areas, though farm lands may be exempted from the separate rates. The powers of a County Council are widened in relation to public recreation and other amenities. The Council may also agree with owners to execute works on private land charging up to 5 per cent. extra for supervision beyond the cost of execution.

The New Zealand Counties Association Act, 1949, incorporates the New Zealand Counties Association.

The Land and Income Tax Amendment Act, 1949, redefines a proprietary company. New provisions cover cases of joint incomes by husband and wife, allow as a deduction from assessable income expenditure on shelter trees on farms, permit the spreading of income from sale of timber from farms over a period of four years, permit the spreading of excess income from sale of live-stock or trading-stock where unduly low standard values had been adopted, and extend the period for allowance of special depreciation on buildings and plant to 1951.

The Friendly Societies Amendment Act, 1949, increases the maximum gross sum for contracts of assurance to £750, declares the rate of interest for determining surplus interest to be that prescribed, gives power to provide holiday accommodation for members and their families, and amends the provisions relating to loans to members.

The Licensing Amendment Act, 1949, provides that a general licensing poll is to be taken in Maori electoral districts as well as in licensing districts. A poll in every no-licence district is to be taken at every licensing poll to determine whether licences are to be restored, and if the required three-fifths of the votes are in favour of restoration, a further poll is to be held to determine whether Trust control be established in the district. There are various other machinery alterations regarding polls, wholesale licences, &c.

The Gaming Amendment Act, 1949, authorized the establishment of the Totalizator Agency Board with functions and powers as may be specified in any approved totalizator agency scheme. The amendment authorizes off-course totalizator investments in accordance with an approved scheme. The requirements of the totalizator agency scheme to be submitted to the Minister of Internal Affairs for his approval are set out together with provisions relating to certain advertisements in connection with totalizator agencies and inspection of the latter. The use of the doubles totalizator is authorized, and the number of one-day totalizator licences for trotting clubs is increased from nineteen to thirty-eight. The provisions relating to publication of dividends, &c., are repealed and tipping is prohibited. Other sections of the amendment include provisions relating to permits and licences to dispose of property by lottery, exemption of small raffles conducted by approved organizations, and to certain offences.

The Law Reform (Testamentary Promises) Act, 1949, provides that the estate of a deceased person may be made the subject of a claim based on the remuneration of persons for work done under promise of testamentary provision.

The Reserves and Other Lands Disposal Act, 1949, provides for the sale, reservation, and other disposition of certain reserves, Crown lands, endowments, and other lands; validates certain transactions, &c.

The Local Legislation Act, 1949, confers certain powers on certain public bodies and validates certain transactions, including authorizing the Christchurch City Council to contribute towards the cost of organizing an air race from England to Christchurch to be held in 1953.

The Agricultural Emergency Regulations Confirmation Act, 1949, validates and confirms certain regulations made under the authority of the Agriculture (Emergency Powers) Act, 1934.

The Medical Practitioners Amendment Act, 1949, provides for the constitution of the Medical Practitioners Disciplinary Committee and for Divisional Disciplinary Committees. The functions of the former are to inquire into charges of professional misconduct (exclusive of charges of grave impropriety or infamous conduct which are to be referred to the Medical Council) made by any person against a registered medical practitioner, and to inquire into such complaints under the Social Security Act, 1938, against registered medical practitioners as may be referred to it by the Minister. Preliminary inquiries may be made by a Divisional Disciplinary Committee. Other provisions deal with the right of the medical practitioner to be heard, authorize penalties, costs, and expenses to be recoverable by the New Zealand Branch of the British Medical Association, and provide for appeals from decisions of the Disciplinary Committee, procedure, &c. The amendment also provides for appeals to the Supreme Court from orders or recommendations of the Medical Council, increases the amount of a fine that can be imposed by the latter to £100, provides for immunity of witnesses, counsel, &c.

The Social Security Amendment Act, 1949, increases the rates of various monetary benefits, and contains some minor miscellaneous amendments in regard to monetary benefits. Part III of the amendment prohibits a medical practitioner from practising under the capitation system and a fee-for-service system at the same time. The refund system is not to apply unless specially authorized while the fee payable from the Social Security Fund is amended to be a reasonable one not exceeding 7s. 6d. Power is given to prescribe higher mileage fees. The right to recover fees from patients by a medical practitioner and for reference of accounts to Divisional Disciplinary Committees is also provided for.

The Finance Act, 1949, validates excess unauthorized expenditure during 1948–49, abolishes the export duty on gold, amends provisions as to refund of sales-tax paid on materials used in manufacture of omnibuses or tram-cars, authorizes the Government Insurance Commissioner to borrow on overdraft from the Reserve Bank, provides that workers' compensation is to be paid at increased rates—i.e., in accordance with 1949 amending Act—in all cases where the employer is the Crown or is insured with the Government Accident Insurance Office, increases the allowance of the Speaker of the House of Representatives, and fixes the salary of the Controller and Auditor-General. Part II permits the surplus of a separate or special rate levied by a local authority to be expended for other special purposes determined by a special order and authorizes local authorities to contribute towards the cost of holding the British Empire Games. Part III contains a number of miscellaneous provisions including the disposal of regimental funds on the reconstitution of Territorial Force units, and that industrial awards may be applicable in a portion only of an industrial district.

The Government Railways Act, 1949, consolidates and amends the law relating to Government Railways. The main alterations are in respect of internal departmental machinery and staff matters. New provisions incorporated in the Act include the redefinition of “railway” to include the subsidiary services, clarification of the Department's right to enforce demurrage charges on wagons detained for an unreasonable length of time at destination stations, and conferring authority to take land for subsidiary services. It is also provided that during the hours when a crossing keeper is not on duty, the Department will not be liable in the event of a collision because he is not on duty, nor will it be liable merely because a warning device has not been provided at a crossing. The earlier provisions making it an offence to drive across a line when a train is within half a mile or when the line is not clear are superseded by one making it an offence to cross when there is any risk of collision, there being deemed to be risk of collision while any crossing keeper or any warning device is giving warning against any attempt to cross. Railway locomotive drivers will be entitled to assume that all persons intending to cross the railway will obey the statutory obligations imposed on them, but, at the same time, it is obligatory for every railway employee, if he has reason to believe that a collision is about to occur, to take all possible steps to prevent the collision. Other sections include the change of names from “First” and “Second” to “Salaried” and “General” Divisions of railway employees, provide that fines imposed on employees shall be paid into the sick-benefit fund, remove doubts as to rights of appeal in certain cases, and clarify the jurisdiction of the Government Railways Industrial Tribunal given in earlier legislation.

The Wool Labelling Act, 1949, provides for the labelling or marking of wool products and the prevention of the improper use of the word “wool.”

The Radioactive Substances Act, 1949, provides for the control of radioactive substances and irradiating apparatus for the purpose of protecting the health of persons likely to be exposed to harmful radiation. The Radiological Advisory Council is established to make recommendations to the Minister on applications for licences for the use of radioactive substances, the exercise of any powers vested in the Minister, and on any regulations or proposed regulations under the Act. The powers of the Minister in relation to radioactive substances, general control of manufacture and dealing in such substances, and the control of use of these and irradiating apparatus are set out in the Act. The power to grant licences, conditions under which issued or granted, classification, cancellation, suspension, or renewal of licences are also dealt with together with the obligation to keep a register of licences. Powers of entry and inspection, the taking of samples and testing of these and of irradiating apparatus are given legislative sanction and the making of regulations is authorized. The Act is to bind the Crown.

The Licensing Trusts Act, 1949, provides for the constitution pursuant to the determination of the electors of no-licence districts at any local restoration poll of licensing Trusts to conduct hotels and sell liquor, and constitutes the Ashburton and Geraldine Licensing Trusts. The functions of the Trust are to provide accommodation and other facilities for the travelling public within the Trust district, to establish and maintain hotels and suitable places within the district for the sale or supply of refreshments, to sell and supply intoxicating liquor within the district and establish and maintain premises for that purpose, and to do all such of the acts and things as may in the opinion of the Trust be necessary or desirable having regard to the general purpose of the Act. The Trust may establish and maintain a brewery, acquire shares in a brewery company, acquire premises, &c., establish temporary premises pending acquisition of hotel premises, and decide the number and situation of hotels, subject to certain conditions. There are various other miscellaneous provisions relating to Trusts in general.

The Government Service Tribunal Amendment Act, 1949, extends the power of the Tribunal to amend principal orders, amends the definition of “employee” by substituting the words “one thousand and sixty pounds” in lieu of the former limit of eight hundred and twenty-five pounds, removes the limitations of time for applying for principal orders to replace existing orders, provides for conciliation proceedings, for hearings to be in public, for assessors to be entitled to vote, and amends the provisions relating to joint nominations by service organizations.

The Maori Purposes Act, 1949, amends the law relating to Maoris and Maori land, and confers certain jurisdiction upon the Maori Land Court. It enables any Maori serviceman or discharged serviceman holding a lease of Crown land or farm land under section 5 of the Maori Purposes Act, 1939, to apply for a review of liabilities. In any appeal the determination of value is made by the Land Valuation Court. Provision is made for adjustment of rent, mortgages, &c., such adjustments being endorsed on the certificate of title. Part II of the amendment extends the Maori Social and Economic Advancement Act, 1945, prescribes breaches of Tribal Executive by-laws, and extends powers of Maori Wardens in respect of the prevention of drunkenness. Part III contains amendments to certain laws and includes a provision that the widower of an intestate Maori may receive a share of the estate. Part IV contains miscellaneous powers including authorization of the Maori Trustee to expend moneys toward the cost of the Auckland Maori Community Centre.

The Samoa Amendment Act, 1949, provides for the establishment of the Western Samoan Public Service, and the appointment of a Public Service Commissioner and two Assistant Public Service Commissioners of Western Samoa and defines their powers, duties, &c. The Act provides for the appointment of an officer of the Western Samoan Public Service to be called the Secretary to the Government who shall be, under the control of the High Commissioner, the principal administrative officer of the Government of Western Samoa. The Samoa Amendment Act, 1947, is also amended by providing that the number of Samoan members of the Legislative Assembly shall be increased by one for every one by which the number of Samoan members of the Council of State is less than three.

The Whaingaroa Domain Disposal Act, 1949, provides for the cancellation of the reservations over portions of the Whaingaroa Domain and for the disposal of these portions, and for the establishment of a Trust to acquire and conduct the licensed premises known a the Waingaro Hot Springs Hotel, in the event of the Crown deciding to dispose of the hotel to a Trust.

The Supply Regulations Amendment Act, 1949, revokes certain supply emergency regulations and continues others in force. The following were to expire on the 31st December, 1949: Electricity, Factory, Foodstuffs, Mining, Shipping Supply, Wheat and Flour Emergency Regulations. Continued in force until the 31st December, 1950, were the Building, Export Prohibition, Oil Fuel, Rationing, and Supply Control Emergency Regulations.

The Emergency Regulations Amendment Act, 1949, continues in force certain emergency regulations until the 31st December, 1950, revokes certain emergency regulations, and lists certain emergency regulations revoked by other enactments. Those continued in force for the ensuing year are; Cargo Control; Cinematograph; Civil Arrest of Soldiers; Coal-mines Council; Defence Emergency; Earthquake Damage; Egg Marketing; Electoral; Enemy Property; Finance; Honey Control Board; Industrial Efficiency; Labour Legislation; Licensing Act; Local Authorities (Temporary Housing); Naval Appointments; Patents, Designs, and Trade-marks; Payments Without Probate; Public Works; Shipping Transfer; Soldiers' Wills; Strike and Lockout; Transport Licences; Voluntary Aids; War Service Gratuities; Waterfront Industry; and Women's Royal New Zealand Naval Service Emergency Regulations.

The Statutes Amendment Act, 1949, contains various amendments of a variety of statutes. Section 5 extends the quota provisions of the Cinematograph Films Act, 1928, by amending the First and Second Schedules to the Act to read 20 per cent. of quota; sections 8 and 9 prescribe the closing date of the general rolls in Maori electoral districts, and authorize expenditure on normal commercial advertising for parliamentary candidates respectively; section 11 widens the functions of the State Hydro-electric Department; section 14 provides for the issue of certificates of proficiency in the use of explosives; section 17 makes it an offence to sell any food or drug not complying with standards prescribed under the Food and Drugs Act, 1947; section 19 empowers a Fire Authority to borrow moneys, and section 21 empowers a Harbour Board to supply water and electricity; section 24 applies the Immigration Restriction Act, 1908, to the arrival or removal of persons by aircraft; section 27 defines the legal status of an adopted child; section 29 authorizes jury lists to be compiled six months later in the year; section 31 amends provisions as to acquisition of fee-simple and exchange of certain leases or licences for new renewable leases under the Land Act, 1948; section 41 extends provisions as to qualifications of applicants for registration as opticians; section 42 authorizes Sunday trading at bookstalls at aerodromes and bus terminals; section 43 authorizes regulations for preventing persons being on ships for unauthorized or improper purposes; section 48 amends the Property Law Act, 1908, by providing that a tenancy is deemed to be determinable on one month's notice in absence of proof to the contrary; section 49 provides that easements may be granted or reserved over public reserves or domains; section 52 provides for National Research Fellowships or other awards for scientific research; section 53 contains amending provisions as to closing-hours for chemists' shops, and section 54 as to exemptions from closing-hour provisions in the Shops and Offices Amendment Act, 1927; section 57 provides that no Court fees are payable in respect of an application to fix the fair rent; section 59 applies the Undesirable Immigrants Exclusion Act, 1919, to arrival or removal of persons by aircraft; and sections 61 and 62 amend the Workers' Compensation Act, 1921, so as to apply the Act to all occupations and to cover the case of damage to teeth respectively.

The Finance (No. 2) Act, 1949, relates to a variety of matters affecting public finance. Included in the Act are provisions increasing the rate of economic war pensions; extending exemptions from gift duty to cover gifts of food and clothing for Great Britain and gifts to the Canterbury International Air Race Council; exempting from amusements-tax admission to the British Empire Games and to the Canterbury Centennial Games and to certain shows or entertainments; empowering local authorities to expend moneys in connection with the Canterbury Centennial Celebrations; and contains special provisions as to tenancies of dwellinghouses for visitors to the British Empire Games.

A brief synopsis of the more important public Acts passed by the General Assembly during the 1950 session, which ended on the 6th December, 1950, is now given.

The Legislative Council Abolition Act, 1950, provides for the abolition of the Legislative Council as from the 1st January, 1951. The Act expressly declares that no member or officer of the Council will have any legal right to compensation for loss of office. The Constitution Act is amended to provide that the General Assembly is to consist of the Governor-General and the House of Representatives, those statutes relating to the Legislative Council being repealed. All statutory references to the Council or to both Houses of Parliament are to be read as references to the House of Representatives, and the functions of the Clerk of the Legislative Council and of the Clerk of Parliaments are transferred to the Clerk of the House of Representatives.

The Potato Growing Industry Act, 1950, establishes the Potato Board and defines its powers and functions. Growers and merchants are to be equally represented on the Board, with a member of the Public Service to be appointed to the Board in an advisory capacity. The principal function of the Board is to ensure that an adequate supply of main crop potatoes shall be available for consumption in New Zealand. Provision is made for the fixing of a levy by the Board on growers of main crop potatoes, the making of contracts between growers and the Board, the appointment of wholesalers authorized to purchase from growers, the manner of holding elections, &c.

The Reserve Bank of New Zealand Amendment Act, 1950, adds to the general function of the Bank, by making it responsible for taking such steps within the limits of its powers as the Bank deems necessary or desirable to promote and safeguard a stable internal price level and the highest degree of production, trade, and employment that can be achieved by monetary action. The Reserve Bank is freed from the direct control of the Government by repealing section 2 of the 1939 amending Act, and provides in lieu that the Bank shall give effect to any resolution of the House of Representatives in relation to the Bank's functions or business. The Reserve Bank is required to maintain reserves sufficient to provide a reasonable margin for contingencies, taking into account prospective receipts and disbursements of overseas funds, and having regard to the internal economic position. The definition of “reserve” is amended to include any overseas currency which is freely convertible into sterling. The earlier provisions requiring the Bank to maintain a minimum reserve of not less than 25 per cent. of the total amount of its notes in circulation and other demand liabilities is repealed.

The Emergency Forces Act, 1950, provides the necessary authority for the raising of voluntary forces to be sent to Korea in fulfilment of the obligations undertaken by New Zealand in the Charter of the United Nations, and also provides for the making of emergency regulations to safeguard the interests of the servicemen and their dependants—e.g., in such matters as occupational re-establishment and the Tenancy Act. Power is given to modify any Acts so far as may be necessary for the purposes of the regulations.

The Co-operative Egg Marketing Companies Act, 1950, applies to co-operative egg marketing companies the provisions of the Co-operative Companies Act, 1933. It enables companies to accept the voluntary surrender of shares or to require the compulsory surrender of shares of non-supplying shareholders. A company ceasing to be entitled to be registered as a co-operative egg marketing company is to change its name so as to remove the signification that it is a co-operative company.

The Stock Amendment Act, 1950, varies the date at which an annual return of sheep is to be furnished by each owner of sheep to the 14th July in 1951 and later years, the number of sheep relating to the 30th June. Section 46 of the principal Act requiring an annual return of stock slaughtered and compensation paid is repealed.

The Wool Industry Amendment Act, 1950, clarifies the powers of the New Zealand Wool Board to acquire and dispose of property required for the performance of its functions.

The Dairy Products Marketing Commission Amendment Act, 1950, and the Meat Export Control Amendment Act, 1950, confers similar powers as in the preceding Act in regard to the Dairy Products Marketing Commission and the New Zealand Meat-producers Board respectively.

The Standards Amendment Act, 1950, amends the principal Act so as to authorize local authorities to make by-laws by adopting standard codes of model by-laws. It is an offence to make an unauthorized comparison with any standard specification for the purpose of any gain or profit, and not only for the purposes of a sale.

The Republic of Ireland Act, 1950, deals with the position due to the Republic of Ireland having ceased to be part of His Majesty's dominions. It declares that the Republic of Ireland is not a foreign country and that New Zealand law is to be construed accordingly. All existing laws will continue to apply as if the Republic of Ireland had not ceased to be part of His Majesty's dominions unless any such law is duly altered after the passing of the Act. The foregoing provisions are made retrospective to the 18th April, 1949. The Act applies to the Cook Islands, the Tokelau Islands, and Western Samoa, and in regard to Western Samoa is declared to be a reserved enactment—i.e., it cannot be altered or repealed by the Legislature of Western Samoa.

The Republic of India Act, 1950, deals with the position due to India having become a republic, while remaining a member of the Commonwealth. All existing laws continue to apply as if India had not become a republic, unless any such law is duly altered in the future. The Act applies to the Cook Islands, the Tokelau Islands, and to Western Samoa, and is declared to be a reserved enactment.

The Plumbers Registration Amendment Act, 1950, makes minor amendments to the principal Act.

The Minimum Wage Amendment Act, 1950, increases the minimum rates of wages prescribed by the principal Act, by 5 per cent. so as to give effect to the interim general wage order of the Court of Arbitration announced on the 10th June, 1950.

The Distress and Replevin Amendment Act, 1950, increases the exemption (from distress for rent) of clothing, furniture, tools of trade, &c., from £50 to £100.

The Infants Amendment Act, 1950, contains provisions dealing with the legal status of an adopted child, and in regard to the discharge of an adoption order. The amendment re-drafts section 27 of the Statutes Amendment Act, 1949, which amended the relevant section of the principal Act to make the status of an adopted child more like that obtaining if it had been born to the adopting parent in lawful wedlock, and also resolves doubts as to whether the 1949 provisions applied to the case of adoption orders made before the 1st January, 1950.

The Tuberculosis Amendment Act, 1950, adds Inspectors of Health to the classes of persons who may be authorized by the Medical Officer of Health to inspect the residence, place of work, &c., of any person known or suspected to be suffering from tuberculosis. The amendment also gives the necessary power to detain a patient and to return him to the institution if he leaves it in breach of the order requiring him to be attended and treated at such institution.

The Medical Research Council Act, 1950, provides for the incorporation of the Medical Research Council and defines its powers and functions. The effects of incorporation will be the assurance of the continuity of medical research, the possibility of attracting funds for medical research from privates donations, bequests, &c., and the assurance of permanency of employment to suitable research workers, and the provision of superannuation for them. The functions of the Council are the fostering of medical research, the preparation and publishing of reports thereon, and the furnishing of information, advice, and assistance to persons and organizations engaged in medical research. The Act makes provision for the establishment of the Medical Research Endowment Fund, and authorizes payment to the Council of moneys appropriated by Parliament for medical research. Authority is also given to local authorities, trustee savings banks, &c., to make donations to the Council. The Council is exempt from land tax, income tax, social security charge, and stamp duty. Gifts, made to the Council for the purposes of medical research are exempted from gift duty and death duties.

The Land and Income Tax Amendment Act, 1950, increases the special exemption from land tax from an unimproved value of £500 to an unimproved value of £1,000. The schedule of basic rates of income tax is re-enacted so as to give effect to the abolition of the addition of one-third to the tax on unearned income. The provisions of the principal Act which distinguish between earned income and unearned income are repealed.

The Land and Income Tax (Annual) Act, 1950, fixes the rates for the tax year 1950–51. The rates are the same as for the previous year except as reduced by the effect of 1950 amendment to the principal Act.

The Land Transfer Amendment Act, 1950, makes several miscellaneous amendments, to the Land Transfer Act, 1915. It includes authorizing the constitution of new land registration districts and consequential amendments enabling compiling of the Register in such cases; gives the Registrar discretionary power in the matter of whether tenants, in common are to take separate certificates of title for their undivided shares on the registration of separate dealings with their respective interests; enables the creation of estates by way of executory limitation in respect of land which is subject to the Land Transfer Act; permits the covenants of a mortgage to be varied by memorandum of variation; places caveats lodged by or on behalf of a beneficiary under a will or settlement or for the protection of a trust on the same footing as other caveats; and contains amending provisions as to deposit of survey plans and fees.

The Magistrates' Courts Amendment Act, 1950, restores the procedure followed before the 1947 Act was passed on an appeal on a question of fact. The appeal will be heard on the Magistrate's notes of evidence unless the Supreme Court, in its discretion, decides to rehear the whole or part of the evidence.

The Chattels Transfer Amendment Act, 1950, in effect enables finance corporations to accept securities given over customary chattels covering the cost of repairs, &c., and assignments of such securities without having to register as moneylenders. Fees payable for registration of instruments and for other matters are to be as proscribed by Order in Council, instead of being fixed by the Act.

The Property Law Amendment Act, 1950, provides that the Magistrate's Court may authorize entry on adjoining land for erecting or repairing buildings, &c.; gives the Court power to grant special relief in cases of encroachment; provides that a mortgagee may combine notice of default and notice of intention to call up the principal sum; and increases the power of the Magistrate's Court to give directions as to service of notices, to deal with cases where sum of money not exceeding £2,000 is involved.

The Tenancy Amendment Act, 1950, enables a landlord to let a dwellinghouse or urban property without being subject to Part III and certain other provisions of the principal Act which restrict the right to recover possession of the premises if an agreement in writing, stating those conditions are not to apply and incorporating the terms and conditions of the tenancy, is entered into and submitted to a Rents Officer before the tenancy commences and is approved by him. Sections dealing with recovery of possession include the non-application of restrictions where a dwellinghouse is let in future to a worker by his employer and the tenant subsequently ceases to be employed by the landlord; where the dwelling or urban property forms part of the estate of a mental patient who had occupied it before becoming a patient and who requires it for his own occupation; where the tenant has transferred or sublet his tenancy and no part of the dwelling is occupied by the tenant or his family (exclusive of temporary absence of not more than one year); and for the restrictions to cease to apply six months after the future transfer of a tenancy unless their continued application had been consented to by the landlord or ordered by a Magistrate's Court. A landlord, who is a trustee, may recover possession for occupation by a beneficiary under the trust subject to the usual conditions as to alternative accommodation or greater hardship. Further sections provide that a landlord aged sixty years or over (fifty-five years in case of a woman) who has owned a house for not less than three years may recover possession on giving six months' notice without having to prove greater hardship or provide alternative accommodation, if he did not have adequate or suitable accommodation at 1st August, 1930, in promises owned by him. The period for which a landlord must own a dwelling before he can obtain possession without the usual hardship conditions is reduced from five to three years. In a case where a landlord fails to establish a repossession case on grounds of nuisance or annoyance on the part of a tenant, the Court may, if the circumstances warrant it, order that restrictions on recovering possession shall cease after six months. No order is to be made if the landlord's conduct has contributed to the nuisance, and any order may be revoked within five months on the ground that the circumstances complained of have been improved. The land-lord of an urban property (having owned the premises for at least two years) who has given one year's notice that he reasonably requires the premises for his own occupation may recover possession without providing alternative accommodation or proving greater hardship, any such case being subject to the discretionary power of the Court to refuse possession, after considering relative hardship of the parties. Alternative accommodation is deemed to be suitable unless the Court is satisfied that it is inadequate for the needs of the tenant, or is of unreasonably low standard, or is for any reason unsuitable for the tenant. The restrictions on payments for goodwill on the transfer of a tenancy are abolished, although the prohibition of fines or premiums and of excessive charges for furniture, fixtures, and other chattels are not affected. The Court for fixing the fair rent is to be a Magistrate's Court in all cases, subject to right of appeal to the Supreme Court where the rent exceeds £525 a year. Licensed hotels and all future tenancies of camp sites (for terms not exceeding six weeks) are exempted from the principal Act. The special provisions of the principal Act as to servicemen are repealed and all references in the principal Act to tenancies are deemed to include sub-tenancies.

The Evidence Amendment Act, 1950, makes it possible for a wife to give evidence voluntarily against her husband when he is charged with a grave sexual offence against a young girl who is a member of the family or household. A confession in a criminal proceeding is not to be rejected because a promise, threat, or other inducement (except force, violence, or other compulsion) has been held out, unless the Court thinks such a promise, &c., was likely to cause an untrue admission of guilt. A section simplifies the proof of entries in public registers of other countries in cases where similar recognition is given by the law of those countries to the public registers in New Zealand.

The Local Elections and Polls Amendment Act, 1950, provides that all general elections of members of local authorities are to be held on a Saturday. The provision whereby persons are entitled to be enrolled and to vote as electors of a local authority in virtue of their being on a parliamentary roll in respect of any address within the district of a local authority is abolished. Only persons who have not had a reasonable opportunity of voting before commencing work are entitled to time off to vote. Provision is also made for postal voting at local body elections.

The Electoral Amendment Act, 1950, provides that future divisions of New Zealand into seventy-six European electorates will be made on the basis of the total European population, no account to be taken in making this division of persons who spend the night of the census on board ship, as guests in licensed hotels, in military camps which are not their homes, or as patients in public hospitals, in addition to the existing exclusion of patients in mental hospitals and prisoners. The allowance for the adjustment of the quota is increased to an amount of 7½ per cent. of the quota instead of the former figure of five hundred persons. All general elections and by-elections are to be held on a Saturday, and Maori general elections are to be held on the same day as European elections.

The Invercargill Licensing Trust Act, 1950, reconstitutes the Invercargill Licensing Trust as an elective body instead of an appointed one. It also consolidated and amended the various enactments dealing with the Trust. The Trust, subject to the right of electors to demand a poll, is enabled to establish public bars separated from premises in which accommodation is provided. Any twenty or more residents residing within a quarter of a mile of any land on which an hotel or bottle store is proposed to be established may apply to a Magistrate for an order prohibiting its establishment, or requiring a poll to be taken on the proposal, on specified grounds. The power of the Minister of Finance to make advances to the Trust for the acquisition of property or payment of preliminary expense's and the power to sell liquor in restaurants are not included in the re-enactment. Minor amendments include power to sell liquor at shows, &c., on terms similar to those of a conditional licence, and to insure its members against personal accident whilst engaged in their duties.

The Harbours Act, 1950, consolidates and amends the Harbours Act, 1923, and its amendments. Principal changes are that Harbour Boards are to consist of elected members only, members being elected by the electors of the constituent local authorities. A member is prohibited from voting on any matter in which he has a pecuniary interest. The provisions relating to appeals by Harbour Board employees against decisions of the Board affecting them are extended in certain directions. Loan moneys are to be paid into a separate bank account in the name of the loan. New provisions exempt from harbour dues, stores, or goods required for the use of Allied Forces and the members of those Forces and their baggage, while the Crown is made liable in respect of storage charges on goods consigned to the Crown. A limited exemption is conferred on yachts and missionary ships, with a nominal charge for berthage on yachts. Harbour Boards may make by-laws providing for the examination of any vehicle using a wharf if there is reasonable cause to suspect that the vehicle is carrying uncustomed or pillaged goods or goods unlawfully obtained.

The Political Disabilities Removal Amendment Act, 1950, provides that a resolution for the application for political purposes of any funds of a union or other society must be passed by a majority of the members of the society and repeals section 40 of the Statutes Amendment Act, 1948. The Act is limited to unions or societies to which compulsory unionism applies, in other cases a resolution may still be passed by a majority of the total valid votes recorded at the ballot.

The Gaining Amendment Act, 1950, consolidates and amends various sections dealing with the issue of totalizator licences, the only important amendment being the provision whereby the Minister of Internal Affairs may grant totalizator licences for not more than 20 days of racing in addition to the existing number of 339 days in any racing year. The Totalizator Agency Board is to receive 7½ per cent. of the investments made through totalizator agencies, and a temporary levy for five years of an additional ½ per cent. is to be deducted by racing clubs and paid to the Board from all totalizator investments before paying dividends. The proceeds of this levy are to be used solely for capital expenditure and to meet operating losses, and to create reserve funds for those purposes, the proceeds being exempt from income and social security taxes. The Board is authorized to distribute surplus revenue to racing clubs in accordance with the approved scheme, and a further section deals with the incidence of taxation on moneys so distributed. Those provisions authorizing the Minister of Finance to make advances to the Board, or to guarantee any advances made to the Board, for preliminary expenses are repealed. Another section deals with the effect of off-course investments on totalizator operators' contracts.

The Coal-mines Amendment Act, 1950, repeals Part I of the Coal Act, 1948, which vested in the Crown the ownership of all unworked coal in New Zealand. The Act revests the coal in the private owners and as far as possible restores them to the position they were in on the 1st April, 1949. Part II consists of miscellaneous amendments to the Coal-mines Act, 1925. Coal mine owners are to work their mines in the most approved manner, according to plans approved by an Inspector of Coal-mines, and without any unnecessary loss of coal. There is provision for the working of coal loft as barriers. The principal Act is amended to make it clear that land may be taken under the Public Works Act for the benefit of private owners to enable them to establish new mines, and that mines may be taken under the same Act for the purposes of State coal mines. Exemption from the requirement for holders of certificates of proficiency as mine managers to have them endorsed periodically to show that the holders had a recent first aid qualification is provided for in certain cases. The Coal Mining Districts Amenities Fund is established, to be financed by a levy of 3d. a ton on all coal raised in any mine, including State mines. A Coal Mining District Amenities Council is also established by the Act to give directions to the Public Trustee as to the expenditure of the funds.

The Taupiri and Renown Coal Companies Act, 1950, provides for the vesting in the Crown of the outstanding shares in two coal mining companies, and provides for the dissolution of the companies and the transfer of their assets and liabilities to the Crown for the purposes of State coal mines.

The New Zealand Army Act, 1950, replaces the present legislative authority by which the Army is governed—i.e., the Defence Act, 1909, its amendments, and regulations made thereunder; the Army Board Act, 1937; the Army Act (Imperial), Rules of Procedure, and King's Regulations, which relate primarily to the United Kingdom Army; and certain Second World War Emergency Regulations. It is designed to meet present day requirements and conditions, be complete in itself and independent of United Kingdom legislation, and to legislate for the Army in both peace and war. The definitions of the terms “officer” and “soldier” both include a woman, and the classes of persons who are subject to military law are extended to cover those persons not otherwise subject to military law who are attached to or employed by or carry out duties which necessitate their accompanying the Army or any portion thereof when on active service. Other subsections define the meaning of the term “active service.” Part I authorizes the raising of the Army for the defence of New Zealand, including the contribution of forces for the defence of Commonwealth interests, and the fulfilment of New Zealand's obligations under the Charter of the United Nations. The Army is to consist of the Regular Force, the Territorial Force, the Army Reserve, the Cadet Corps, and military forces raised in time of war or other like emergency. The Act provides for the mobilization of the Territorial Force for war service, both within and outside New Zealand, and also authorizes the voluntary enlistment of persons for service overseas, as well as voluntary service overseas by officers and soldiers of the Territorial Force and Army Reserve. Other sections provide for the period and conditions of service of the various constituents of the Army to be prescribed by Army Orders, instead of by regulations. Part II relates to the command, administration, and organization of the Army. The Army Board Act, 1937, is incorporated, and changes include the addition of a Territorial officer as an associate member of the Board and the addition to the functions of the Board of the command of the Army. Part III deals with Court-martial offences and adheres largely to the corresponding sections of the Imperial Act. The principal variations are that the death penalty has been retained only for treachery, mutiny and sedition, treason and murder; that the maximum punishment for an offence in every case is provided in the section creating the offence; and that the more liberal use of fines as an alternative punishment has been adopted. A person who has been acquitted or convicted by a Court-martial shall not be liable to be tried for the same offence by any Civil Court. Part IV relates to the summary disposal of charges and sets out clearly the powers of summary award of punishment for offences not referred for trial by Court-martial. Part V deals exclusively with offences committed by civilians or soldiers in respect of military service, military personnel, or military property and punishable on summary conviction by the Civil Courts. Part VI collects and rearranges in logical sequence the various sections of the Imperial Act dealing with procedure relating to the convening and conduct of Courts-martial and matters incidental thereto, with such modifications as have been found necessary to suit New Zealand conditions. A woman officer is to preside over a Court-martial for the trial of a woman. Any sentence of death passed by a Court-martial shall not in any case be carried into effect without the approval of the Governor-General. Part VII contains general provisions and includes the vesting in the Array Board of the recognition of rifle clubs and rifle associations and the withdrawal of such recognition, the enlistment of aliens with the approval of the Army Board, and machinery for the recovery of excess payments to which an officer, soldier, or other person is not entitled.

The Royal New Zealand Air Force Act, 1950, replaces the present legislative authority by which the Air Force is governed—i.e., the Air Force Act, 1937, its amendments, and regulations made thereunder, the Air Force Act (Imperial), Rules of Procedure, and King's Regulations, which relate primarily to the Royal Air Force. The Act is designed to fulfil similar requirements and is generally similar to the Army Act, 1950, but with the relevant modifications appropriate to a different branch of the Armed Forces. Thus the various parts of the Act correspond closely with those set out in the Army Act, 1950. It is provided that the Air Force is to consist of the Regular Air Force, the Territorial Air Force, the Air Force Reserve, the Air Training Corps, and the Women's Auxiliary Air Force. The Act also provides for the mobilization of the Territorial Air Force and Air Force Reserve for war service both within and outside New Zealand. Those parts dealing with command, administration, and organization of the Air Force, Court-martial offences, summary disposal of charges, civil offences, Courts-martial, and general follow those outlined under the Army Act above. A section enables the Air Force to operate aircraft for hire or reward, and contains a new provision authorizing the making of regulations limiting the liability of the Air Force when, in operating under the section, it acts as a common carrier.

The Servicemen's Settlement Act, 1950, re-enacts with amendments the law relating to servicemen's settlement and land sales. The most important amendment to the part relating to servicemen's settlement is the provision that compensation is to be based on the market value of the land as at the date of its vesting in the Crown instead of being based on the 1942 basic value as provided in the Servicemen's Settlement and Land Sales Act, 1943. The part relating to land sales is to apply only to sales of freehold farm land and sales of farm land comprised in West Coast settlement leases. Control is to be exorcised not for the purpose of fixing prices, but to establish the principle that farm land that is suitable or adaptable for servicemen's settlement is to be farmed personally by a discharged serviceman or by a child or grandchild of the present owner. Sales of leases or licences of Crown land are also made subject to this principle. The Act is to expire on the 30th June, 1952. The value of land for the purposes of the Act is to be the current market value. It is to be determined by an order of the Land Valuation Court as the sum which the land might be expected to realize if offered for sale unencumbered, on such reasonable terms and conditions as a bona fide seller might be expected to require and as a willing but prudent and informed purchaser might be expected to accept. Provision is made for the determination of the 1942 basic value of land in accordance with the earlier Act, because it is proposed to settle discharged servicemen at that basic value, subject to their giving a suspensory mortgage for the balance of the market value.

The Cemeteries Amendment Act, 1950, makes several minor amendments to the Cemeteries Act, 1908, including a provision that only land in which the body of a deceased person was buried before the commencement of the Cemeteries Amendment Act, 1912, can be declared to be a private burial ground. It provides for the free cremation of bodies of deceased poor persons, and empowers the Minister to delegate certain specified powers to officers of the Department of Health.

The Joint Family Homes Act, 1950, provides a new scheme for the establishment of family homes modelled substantially on the one embodied in previous enactments, but adapted and modified to meet present day conditions. It enables a man and his wife to establish a family home of a value not exceeding £4,000. It aims at promoting a sense of dual ownership under which the family home will belong, not to the husband or wife separately, but to both of them jointly so as to pass to the survivor on the death of one of them. To encourage the adoption of the new scheme, provision is made that, provided the settlor is solvent at the date of settlement, the settled home shall be protected against the claims of creditors to the extent of £2,000 and shall to that extent be exempt from death duties when it passes on the death of one of the beneficiaries to the survivor. The settled home is also protected from gift duty and stamp duty on the creation of the settlement.

The Dietitians Act, 1950, is designed to further the advancement of the knowledge of nutrition and dietetics and to provide for the training and registration of dietitians. It provides for the constitution of the Dietitians Board, and defines its functions. The arrangement of the Act and necessary machinery clauses follow the Nurses and Midwives Act, 1945, the Physiotherapy Act, 1949, and the Occupational Therapy Act, 1949.

The Co-operative Dairy Companies Amendment Act, 1950, transfers from the Minister of Stamp Duties to the Minister of Justice the power to appoint the members of the Co-operative Dairy Companies Tribunal and validates surrenders of shares accepted by companies which became registered under the principal Act on or before 20th October, 1951.

The War Pensions Amendment Act, 1950, increases the rates of certain war pensions and allowances as from 8th May, 1950, and increases the allowable income of war veterans as from 1st January, 1950, the former by 2s. 6d. a week and the latter from £52 to £78 a year. In computing any war veteran's allowance no account may be taken of the personal earnings of any woman from domestic service in a private home up to £78 a year.

The War Pensions and Allowances (Mercantile Marine) Amendment Act, 1950, increases by 2s. 6d. a week from 8th May, 1950, the mother's allowance payable to widows of members of the Mercantile Marine, and also the pensions payable to the wives of members in respect of the disablement or detention of members.

The Social Security Amendment Act, 1950, provides for an increase of 2s. 6d. a week as from 8th May, 1950, in the maximum rate of superannuation, age, widows', orphans', invalids', minors', sickness, and unemployment benefits. Provision is also made for an increase of 10s. a week in general from the 1st January, 1950, in the allowable income of age beneficiaries, invalids, and persons entitled to sickness benefits. The basic rates of age benefits and invalids' benefits are to be reduced by £1 for every £15 of accumulated property in lieu of the former £1 for every £10 of accumulated property. In computing the income of any woman, the Commission may take no account of her personal earnings from domestic service in a private home up to £78 a year. An age beneficiary on attaining the age of sixty-five years is to be entitled to an increase in his allowable income of 2s. 6d. a week for each complete year after he attained the age of sixty and was qualified on residential grounds, during which he did not receive an age benefit, irrespective of the reason of deferment. Appropriate adjustments are to be made to apply the same provision to a beneficiary whose benefit is reduced by reason of the possession of accumulated property, so as to place him in the same position as one whose allowable income is to be increased in the manner quoted above. An amendment to the principal Act authorizes the Minister to approve the grant of maternity benefits to patients who are attended by their own doctors in any of the specified State maternity hospitals. A section exempts persons employed by the Governments of Western Samoa and the Cook Islands, unless they remain ordinarily resident in New Zealand, from payment of the social security charge.

The Medical Practitioners Act, 1950, consolidates with amendments the Medical Practitioners Act, 1914, and its amendments. New material includes authorizing the Medical Council to delegate to sub-committees any of its functions or powers except the power to inquire into a charge of grave impropriety or infamous conduct in a professional respect, providing for persons on completing the medical course to be conditionally registered for a period during which they will be limited in their right to practice (this period of internship is designed to ensure that a medical practitioner shall have a period of practical training under adequate supervision), and a section aimed at giving effective control over medical graduates who have undertaken to give specified service in return for bursaries to assist them in their medical courses.

The Transport Amendment Act, 1950, provides a new method of fixing the charges for transport services under the Transport Act, 1949, and contains several other miscellaneous amendments to that Act. The Transport Charges Committee is abolished, and the charges which may be made in respect of any transport service to which the principal Act applies are to be fixed (a) in the case of a service owned by a public body by that body itself, with a right of appeal to the Transport Charges Appeal Authority; (b) in the case of any other service, by the Commissioner of Transport, with a right of appeal to the Transport Charges Appeal Authority. The Transport Co-ordination Board is also abolished, although power is retained whereby the Minister may make, or may appoint any other person to make, inquiries for the purposes of transport co-ordination. Increases in the fees payable in respect of the licensing of motor-vehicles are provided for, licence fees and dealer's licences being increased by 1s. in each case. A person disqualified from holding a driver's licence or whose licence has been suspended is enabled to apply after six months to the Court by which the disqualification or suspension was imposed for an order removing the same. It is also provided that an offence of negligent or reckless driving causing bodily injury or death (but not an offence of causing injury or death while intoxicated) may be dealt with either on indictment or summarily, in the latter case the maximum punishment being a term of imprisonment not exceeding three months or a fine not exceeding £100. The maximum liability of insurance companies under third-party risks insurance is increased from £2,000 to £5,000, in the case of each passenger in the vehicle, and from £20,000 to £60,000, in the case of aggregate claims of all the passengers, these increases to operate from the commencement of the next licensing year. Provision is made for an increase in the maximum weight of vehicles, not multi-axled, from 10 tons to 12 tons and for multi-axled from 6 tons to 7 tons per axle. Other amendments relating to licensing include the provision that subject to a right of appeal to the Licensing Appeal Authority, the decisions of the Metropolitan Licensing Authorities are final and cannot be questioned in any Court; prescribe a new method of dealing with applications to Metropolitan Licensing Authorities for taxicab service licences; require a Licensing Authority in considering an application for a transport licence to take also into account the extent to which an improved standard of service is necessary or desirable in the public interest; extend the duration of road transport licences from three to five years; give rights of appeal from the decisions of Licensing Authorities to incorporated bodies whose members have a special interest in the type of transport concerned and to organizations representing transport operators; and require the Licensing Authority to take immediate steps to carry into effect every decision of the Licensing Appeal Authority.

The Machinery Act, 1950, makes provision for the inspection of certain types of machinery and for the safety of persons working with machinery. At present, the inspection of machinery is a function of the Marine Department but that function, so far as it relates to machinery to which this Act applies, will be exercised by the Department of Labour. Machinery to which the Act does not apply is dealt with in the Boilers, Lifts, and Cranes Act.

The Boilers, Lifts, and Cranes Act, 1950, provides for the inspection and control of certain kinds of boilers and machinery, makes provision for the safety of persons working with boilers or machinery, and makes provision with respect to the qualification and powers of engine drivers. The provisions in the Act were formerly contained in the Inspection of Machinery Act, 1928, which is repealed by the Act. The 1950 Act, however, relates only to certain specified boilers and machinery, the remaining classes of machinery which the Act does not cover being dealt with in the Machinery Act, 1950.

The Crown Proceedings Act, 1950, consolidates the provisions at present contained in the Crown Suits Act, 1908, and its amendments. Most of the changes are made for the purpose of bringing the procedure in actions by or against the Crown into line with the procedure in actions between subjects. Many of the sections follow provisions contained in the Crown Proceedings Act, 1947, of the United Kingdom. The 1950 Act abolishes the special forms of procedure which have hitherto been necessary in actions involving the Crown—namely, petitions of right, writs of capias ad respondendum, writs of fieri facias, and proceedings by the Crown by way of informations in civil suits except where such proceedings are expressly authorized by any Act. It takes away the procedural privileges formerly enjoyed by the Crown in connection with discovery, interrogatories, and interpleader; and makes certain Acts bind the Crown which have not done so previously.

The National Provident Fund Act, 1950, consolidates the National Provident Fund Act, 1926, and its amendments. Included in the new provisions are those empowering the Board to borrow on overdraft; setting out the manner in which moneys may be invested; allowing a contributor to elect to have his pension paid at the age of sixty-five (instead of age sixty) in which case his contributions will be reduced or his pension increased; permitting the Board, in cases where an employee of a local authority becomes a public servant, to pay to the Government Superannuation Fund the full amount deducted from the contributing employee's salary without taking into account benefits that he may have received from the National Provident Fund, and authorizing the Board to enter into agreements with institutions in the British Commonwealth providing for reciprocity in matters relating to superannuation.

The Mental Defectives Amendment Act, 1950, contains miscellaneous amendments to the principal Act, including the delegation to the Director of the Division of Mental Hygiene of the Minister's power to make an order requiring a voluntary boarder to be discharged or consenting to his detention; providing that Superintendents of all public and licensed institutions are to be medical practitioners; providing that buildings and land may be declared parts of public institutions; providing for maintenance of persons not ordinarily resident in New Zealand who are detained in public institutions; and validating the use of certain institutions as public institutions or parts thereof.

The Hospitals Amendment Act, 1950, repeals the provisions under which certain appointments made by Hospital Boards had to receive the prior approval of the Minister; allows Hospital Boards to keep separate imprest accounts at institutions situated in different places; authorizes the Board to delegate any of its powers, with specified exceptions, to committees, subject in all things to any general or special directions of the Board and to its standing orders; and authorizes the making of regulations on certain matters in respect of maternity wards in public hospitals.

The Deaths by Accidents Compensation Amendment Act, 1950, rewrites section 8 of the principal Act so as to extend the limitation period under that Act for actions (other than those against the Crown and public and local authorities) from one year to two years and to enable the Court to extend the period to six years.

The Orchard and Garden Diseases Amendment Act, 1950, defines the meaning of the terms “disease,” “orchard,” and “plant”; provides that an Inspector may enter an aircraft to inspect plants or fruit; extends the class of things which may be seized and destroyed if unlawfully introduced; provides for an inspection fee on fruit intended for export; rewrites the section of the principal Act which authorizes the making of regulations prohibiting the introduction into New Zealand of diseased plants, fruits, &c.; and contains various provisions regarding the making of regulations for the purposes of the principal Act, &c.

The Municipal Corporations Amendment Act, 1950, increases the maximum general rate from 2s. 6d. in the pound to 3s. in the pound, where the rating is on the annual value, and from 2d. to 2½d. in the pound where the rating is on the capital value. Other provisions include an increase in the limit of loans for housing purposes under Part I of the 1948 amendment from £1,515 to £2,020; authorize a Borough Council to subdivide for housing purposes other land vested in the Council and not held by it in trust for any particular purpose other than housing; amend the provisions relating to the preparation of publications concerning borough activities; and authorize a Council to enter the district of any other local authority without first obtaining consent for the purpose of the transport of school children to and from school, &c.

The Apple and Pear Marketing Amendment Act, 1950, amends the principal Act in regard to the method of appointment of certain members of the Board.

The Noxious Weeds Act, 1950, consolidates and amends the Noxious Weeds Act, 1928, and its amendments. It gives effect to the main recommendations made by a special Committee set up in 1945 to consider the control of noxious weeds in New Zealand. It defines various terms such as “clear,” “noxious weeds,” “local authority,” &c.; prevents the propagation, planting, sowing, and sale of any of the plants mentioned or included in the First Schedule to the Act, there being an absolute prohibition in respect of water hyacinth and two species of hawthorn; revises the list of plants which may be declared to be noxious weeds; and has various amendments to the powers, duties, &c., of local authorities in respect of noxious weeds.

The Naval Defence Amendment Act, 1950, amends the Naval Defence Act, 1913, by providing for the appointment of a civilian Navy Secretary, as an officer of the Public Service, following upon the completion of the term of office of the then Naval Secretary. The Naval Board is reconstituted so as to permit the appointment of a Third Naval Member for Supply, and its functions are restated so as to make it unnecessary to define thorn by regulations. It provides for the appointment of temporary officers of Naval Forces, establishes the Women's Royal New Zealand Naval Service as part of the permanent Naval Forces, clarifies the power to raise reserve and auxiliary forces and services, and repeals that subsection of the principal Act which provided that the Naval Forces shall be raised and kept by voluntary enlistment only.

The Patriotic and Canteen Funds Amendment Act, 1950, makes several miscellaneous amendments to the principal Act.

The Limitation Act, 1950, consolidates and amends the general Acts which deal with the limitation of the main classes of civil actions and a number of other enactments which prescribe special periods of limitation for special classes of actions. It does not affect criminal proceedings, and leaves untouched a number of special provisions relating to the limitations of civil actions, mainly where the limitation provision is contained in the enactment which created the right of action or where it can be more conveniently referred to if left where it now appears. The Act follows substantially the Limitation Act, 1939, of the United Kingdom, the differences being mainly the result of differences between circumstances in New Zealand and those in England. Certain sections have been included to cover the special problems in New Zealand relating to Land Transfer land, land of the Crown, and Maori customary land. The period of limitation in respect of land of the Crown has been left at sixty years. The Act provides for the repeal of a number of enactments relating to the limitation of actions against public and local authorities and sots out in section 23, general rules applicable to every action against the Crown or any such authority. A now subsection provides for the limitation of actions in respect of death or bodily injury.

The Stock Remedies Amendment Act, 1950, contains provisions relating to the manufacture, importation, sale, distribution, and use of biological products, with the aim of ensuring that the products are of proper quality and are used under proper supervision in certain cases, and also provides for an additional member to be appointed to the Stock Remedies Registration Board.

The Rating Amendment Act, 1950, allows a local authority rating on annual values to combine its valuation roll and rate book in one book and to adopt its own system of numbering entries on the valuation roll. It abolishes the partial exemption from rates where dwellinghouses and other buildings are vacant for not less than six months in the rating year, and provides an alternative procedure for recovery by a local authority of the amount of a judgment for arrears of rates against the owner of an abandoned property.

The Annual Holidays Amendment Act, 1950, abolishes holiday cards, enables a holiday to be taken in any two periods that are mutually agreed upon, permits an employer whose premises are closed for a fixed period to grant a proportionate holiday to an employee who has not qualified for a full holiday, and clarifies the position where a worker is entitled to an annual holiday under some special provision other than the principal Act, so that the special provision will apply if it is not less favourable than the provisions of the principal Act. Accordingly, the Agricultural Workers Act, 1936, is amended so as to include in the holiday pay the full allowance for board and lodging.

The Waterfront Royal Commission Act, 1950, makes special provision as to the Royal Commission appointed on the 21st September, 1950, to inquire into and report upon the waterfront industry in New Zealand.

The Death Duties Amendment Act, 1950, modifies section 49 of the principal Act which requires gift duty to be paid on the total value of a gift, notwithstanding that some benefit or advantage may be created or reserved in favour of the donor; exempts from death duty the value of any pension payable from a private superannuation fund to the widow of a deceased contributor, though this exemption does not extend to any additional pension that may be payable by reason of an election by the contributor to accept a reduced pension in his lifetime; and substitutes the Commissioner of Stamp Duties for the Minister of Finance in regard to approval of superannuation funds for exemptions from gift duty and stamp duty.

The Government Railways Amendment Act, 1950, authorizes the issue of certificates of title for railway land and prevents any appeal against the appointment of any member to any position in the Salaried Division wide certain conditions.

The Education Lands Amendment Act, 1950, confers a right of freehold on lessees of high school reserves vested in the Crown, vests in the Crown some additional high school reserves, and amends the descriptions of other high school reserves vested in the Crown by the Education Lands Act, 1949.

The Supply Regulations Amendment Act, 1950, continues the following supply regulations in force to the end of 1951—namely, the Building, Export Prohibition, and Supply Control Emergency Regulations, all others having now been revoked.

The Public Service Amendment Act, 1950, prevents any appeal to the Public Service Board of Appeal by an officer against the appointment of any other officer to a position in any Division if the appointment is made after the passing of this Act and does not involve the promotion of the officer so appointed.

The Emergency Regulations Amendment Act, 1950, continues certain emergency regulations in force until the end of 1951, the following emergency regulations having been revoked since the 1949 Act—namely, the Electoral, Public Works, Voluntary Aids, Naval Appointments, Waterfront Industry (Amendment No. 1), and Women's. Royal New Zealand Naval Service Emergency Regulations.

The Marginal Lands Act, 1950, establishes a Marginal Lands Board, authorizes it to appoint one or more Marginal Lands Committees in any land district and to delegate its powers; provides for the appointment of an officer of the Department of Lands and Survey as Marginal Lands Director, who is to be the principal executive officer of the Board and who will supervise the administration of the Act; defines the functions of the Board as being to assist farmers to restore, increase, and maintain production on marginal lands; and authorizes the Board to make advances to farmers for such purposes. The Board in granting assistance may impose conditions restricting the types and numbers of stock to be depastured on the land and the types of crops to be grown and the areas to be sown. Other sections require the Board to take security over the land for any advances made; authorize it to grant relief from payment of moneys due under any security if it considers it equitable to do so; confer rights of entry on land for the purposes of the Act; provide that all moneys required are to be paid from the Land Settlement Account out of moneys appropriated for the purpose of restoring, increasing, or maintaining production on marginal lands, and for all repayments under mortgages, &c., to be paid into that account; and require the Board to report to Parliament annually.

The, Education Amendment Act, 1950, extends the ordinary term of office of members of School Committees who are in office at the passing of this Act to three years, but does not affect the normal two year term of members of School Committees elected at future elections. In the event of any appeal to any Primary Teachers Appeal Board, the suitability for the position is to he determined by the Board.

The Government Service Tribunal Amendment Act, 1950, enables the Public Service Commission to carry out in 1951 the five yearly regrading of the Public Service which is due to be completed in that year, without having to apply beforehand to the Tribunal for its approval of every alteration in grading. Any service organization may then apply to the Tribunal for the variation or cancellation of any grading.

The Local Legislation Act, 1950, confers certain powers on certain public bodies and validates certain transactions.

The New Zealand University Amendment Act, 1950, extends the term of National University Scholarships from three to four years, increases their value from £45 to £76, enables one to be held with a scholarship or bursary not awarded by the University provided that the total amounts combined do not exceed £165 in any one year, reduces the lodging allowance from £45 to £40, and abolishes the payment of daily travelling expenses of up to £15 a year. A Taranaki Scholarship similarly is now made tenable with another scholarship provided the total amount does not exceed £110 a year. In certain cases the Taranaki Scholarship may be extended for two additional years, while its value is to be such amount (but not less than £70) as the Senate may determine, in addition to tuition fees.

The Capital Punishment Act, 1950, restores capital punishment for murder and provides that convicted murderers who are now or at any future time serving sentences of life imprisonment (whether originally sentenced to death or not) are not to be released on probation or discharged until after the approval of the Governor-General has been obtained. The Act also provides that expectant mothers liable to be sentenced to death are to be sentenced to life imprisonment, and that persons under the age of eighteen years are to be sentenced to detention during His Majesty's pleasure, in lieu of death.

The Insurance Companies' Deposits Amendment Act, 1950, provides that deposits in respect of employers' liability insurance business must be made in approved securities and not in money. Deposits by British companies in respect of employers' liability insurance business are to be £22,500 in all cases. Deposits by local companies recommencing this same class of business are to be based on premium income—i.e., £1,000 plus a further £1,000 for each £2,500 of premium income. A section provides for the payment to the Public Trustee by insurance companies of remuneration as agreed upon for his services in managing any securities deposited under the principal Act.

The Crimes Amendment Act, 1950, applies to aircraft certain provisions of the Crimes Act, 1908—e.g., intentionally or wantonly endangering persons on railways, tramways, &c.; arson; damage by explosive; shooting at, &c.

The Workers' Compensation Amendment Act, 1950, in Part I restores the right of insurance companies to undertake employers' liability insurance as from 1st April, 1951. Every employer is compelled, unless specially exempted—e.g., employers with adequate financial resources to carry their own insurance and Commonwealth shipping companies indemnified by United Kingdom mutual protecting clubs may be exempted, either completely or partially—to insure with an insurance company of his own choice. Employers who fail to insure are to be indemnified by a Workers' Compensation Board established by the Act, out of an account to be built up by levies from insurance companies and exempted employers. The Act provides for the fixing of maximum rates of premiums by regulations, for the notification of accidents, and for the voluntary insurance of workers who are members of the employer's family, or are not required to be covered by insurance, or are employed without wages or at reduced wages. The functions of the Workers' Compensation Board are set out in the Act and include recommending the maximum rates of premiums and rates of commission for insurance agents, administering the Workers' Compensation Account, and undertaking and assisting accident prevention, research into the causes, incidence, and prevention of accidents, and the care and assistance of injured workers. Miscellaneous amendments to the principal Act include an increase in the maximum amount of weekly payments of compensation from £6 to £6 10s., restore the limit of six years for weekly payments of compensation for loss of earning power from non-schedule injuries, and provide that an injured worker is to receive additional compensation at the rate of 30s. a week for any period during which he requires constant personal attendance and is not being maintained free of charge in a hospital.

The Board of Trade Act, 1950, sets up a Board of Trade, whoso functions generally are to be advisory to the Minister of Customs on matters related to industrial and trade development, import licensing, and (except in relation to agricultural and pastoral products) export licensing. The Board is also to have such other powers as may be delegated to it by any Minister or other authority, including the licensing of imports, and the licensing of exports other than agricultural or pastoral products. The Board is to consist of not more than four members, including those members of the Import Advisory Committee sot up in May, 1950, who are still members on the date of the passing of the Act. It is to have the powers of a Commission of inquiry, and its advisory functions are to cover the economic aspects of such matters as the rates of Customs duties and the general effect of the operation of the tariff; the maintenance and development of existing industries and the development of new industries; the administration of import licensing and of export licensing (except in relation to agricultural or pastoral products) and applications and appeals related thereto; international trade agreements and conferences; and the marketing and distribution of products not specifically provided for in other legislation.

The Agricultural Emergency Regulations Confirmation Act, 1950, validates and confirms certain regulations made under the authority of the Agriculture (Emergency Powers) Act, 1934.

The Land and Income Tax Amendment Act (No. 2), 1950, provides for a special income tax rebate of £15 to persons who have attained the age of sixty-five years. The Act also provides for an extension of the special depreciation allowance of 30 per cent. on new premises, plant, and machinery to 31st March, 1952; authority for the Commissioner to grant an initial depreciation allowance of 30 per cent. in respect of new farm equipment or now accommodation for farm workers; an allowance for land development expenditure by farmers, the deduction not to exceed £200 in the aggregate in any one income year; arrangements for the payment of income tax and social security charge by members of any emergency Naval, Military, or Air Forces; extension of the exemption from income tax if the income is derived from Western Samoa and is chargeable with income tax in that country: and exemption from income tax of the income of any society formed for the purpose of advertising, beautifying, or developing any district with a view to attracting trade, tourists, or population, and not for private profit. Provision is also made to implement the agreement between the Governments of New Zealand and Australia for the joint purchase of the phosphate mining rights on Christmas Island and the arrangement that the income of the Commission would be exempt from taxation in both countries. Certain transfers or settlements of income are to be disregarded for income tax purposes and the transferor or settlor is to remain liable for income tax as if the transfer or settlement had not been made. A section re-enacts in a modified form the provisions of section 7 of the 1935 amendment relating to the taxation of the profits of mutual associations, while the Commissioner is empowered to grant relief from payment of income tax up to £100 on the ground of hardship without the necessity of obtaining the Minister's approval.

The Shipping and Seamen Amendment Act, 1950, provides for the deportation from New Zealand of every seaman or apprentice who is convicted of the offence of desertion or absence without leave from his ship. The provision does not apply to those engaged in New Zealand or to foreign seamen, the latter already being covered in other legislation. The Secretary of Marine may grant three months' extension in respect of a certificate of survey after its expiry date, and the Minister is enabled to exempt from survey a ship plying regularly in the foreign trade carrying a certificate of survey issued by a corporation, &c., approved by the Minister.

The Reserves and Other Lands Disposal Act, 1950, provides for the sale, preservation, and other disposition of certain reserves, Crown lands, endowments, and other lands; validates certain transactions; and makes provision in respect of certain other matters.

The Licensing Trusts Amendment Act, 1950, extends the power to make regulations enabling the Licensing Control Commission to authorize or direct the taking of a preliminary poll in any locality where the local authority applies or intends to apply for a licence for a local Trust, and to provide for the approval of managers by the Licensing Committee and the defining of the duties and liabilities of managers. It authorizes any local authority to acquire an option over a site for the proposed licensed premises, to meet costs, &c, and for those costs and expenses to be repayable by the local Trust when it is formed.

The Statutes Amendment Act, 1950, contains various amendments of a variety of statutes. Section 4 deals with the consequences of variation, reversal, or discharge of an adoption order. Section 10 amends the Forests Act, 1949, in respect of power to acquire land for forestry purposes, and section 11 defines the term “road” in the same Act for the application of timber royalties. Section 14 amends the time for the preparation of jury books to the 1st December of each year. Section 14 provides that, under the Justices of the Peace Act, 1927, an accused person committed for sentence is not to be admitted to bail unless the Court so directs, while section 15 amends the same Act in regard to the power of a constable or other person executing a warrant of arrest to enter premises. Section 18 repeals provisions for the recovery of payments by local authorities under disqualifying contracts, and section 19 increases the penalty for unlawfully acting as a member of a local authority to an amount not exceeding £100. Section 20 amends the provisions as to matters to be provided for in reorganization schemes proposed by the Local Government Commission by adding (a) the exclusion of any area from any district, and (b) the dissolution of any local authority. Section 26 amends the Poisons Act, 1934, as to the form of keeping records of prescriptions and by providing that the Registrar may delegate licensing powers to district officers. Section 28 relates to the rights of appeal of officers of the Post and Telegraph Department. Section 29 provides that the Commissioner of Crown Lands may execute leases of public domains. Section 31 provides that the Rotorua Borough Council is to consist of elected members only. Section 35 excludes farm land from the Tenancy Act, 1948. Section 36 increases the maximum general rate permitted under the Town Boards Act, 1908. Section 38 provides that revisions of county valuation rolls made not later than the 31st March, 1951, are to be made according to the 1942 basic values.

The Cook Islands Amendment Act, 1950, contains provisions for the conservation of Native antiquities including prohibiting the export of antiquities from the Cook Islands without the written permission of the Minister. Miscellaneous amendments to the principal Act include definition of the terms “Native freehold land,” “night,” and “high water mark”; declares certain acts to be seditious offences, and adds to the list of offences for which a person may be arrested without a warrant; validates the lease of the Aitutaki Aerodrome to the Crown; and contains provisions relating to certain applications for adoption, and for the amendment of Land Court orders after a title has been ascertained.

The Finance Act, 1950, relates to a variety of matters affecting public finance, including acquisition of shares in the East Coast Farmers' Fertilizer Company by the State Advances Corporation on behalf of the Crown; authorizing national development loans in anticipation of the Appropriation Act, expenditures from the Defence Fund, other financing of suspensory loans, granting rehabilitation loans out of repayments, transfer of surplus funds from the Consolidated Fund to the Public Works Account, construction of certain railway deviations; authorizing and validating expenditure by local authorities in respect of the British Empire Games and the Commonwealth Parliamentary Association Conference, 1950; exempting gifts to United Nations appeal for children from gift duty; the amalgamation of the Meat Pool and Meat Industry Stabilization Accounts to form the Meat Industry Reserve Account; providing that in computing Post Office profits, there may be deducted the amount of any loss in any previous financial year; giving effect to the resolution passed by the House of Representatives on 24th August, 1950, exempting various classes and kinds of goods from sales tax; providing that members of the General Assembly are not to be disqualified by receipt of allowances for travelling as representatives of Parliament and that the provisions as to disqualification are not to apply in certain cases; and authorizing the disposal of private and special funds and canteen stores profits of the Second New Zealand Expeditionary Force to the Canteen Fund and New Zealand Patriotic Fund respectively. One section relates to the sale of State houses, authorizing these to be sold for cash or under an agreement for sale in such manner, at such price, and on such terms and conditions as the Board of Management thinks fit. Express authority is given to the Board to allow discounts for early payment of the selling price; to remit any unpaid balance of the selling price if the purchaser, or a specified wage earner of the purchaser's household, dies before attaining a specified age and a premium payment has been made; to impose conditions in respect of resale and personal residence; and to allow a reduced rate of interest and remit part of the soiling price where the conditions of sale are complied with. A County Council is enabled to raise a loan without a poll to renew a bridge where necessitated by flood, fire, &c., and the New Zealand Counties Association is empowered to purchase and sell roadmaking machinery. Another section declares that a state of war still exists between New Zealand and Germany, Austria, and Japan, and will continue in respect of each of those States until it is ended by a Proclamation by the Governor-General relating to the particular State concerned; repeals section 24 of the War Legislation and Statute Law Amendment Act, 1918, which defined the duration of the First World War, and may now be regarded as spent; and provides that contracts and wills referring to the date of the end of the war or the declaration of peace are to be construed as if that date were the 1st December, 1950, unless the context otherwise requires.

The Superannuation Amendment Act, 1950, makes various amendments to the principal Act, including defining the term “Government service” so as to exclude non-permanent service in the Armed Forces, though it may be counted where it immediately follows a period of Government service. Periods spent as a military defaulter are not counted for superannuation purposes, nor service in the Armed Forces for which a Regular Force gratuity under a scale of pay which came into force from 1st April, 1946, is payable. Other sections deal with retirement from education service; re-employment of a contributor after retiring on allowance; persons deemed to be permanent officers of the Samoan Public Service; computation of contributory service in Cook Islands and Samoan Public Services; refund of contributions on allowances no longer deemed to be salary; house allowances, &c., to be added to salary in certain cases; retiring allowance of permanent members of Regular Forces retiring after twenty years' service; exemption from death duties of annuities to widows of members; and the contributions by teachers who purchased service under the Public Service Superannuation Act, 1927.

The Police Offences Amendment Act, 1950, makes it an offence for any unauthorized person to remain on a ship after being ordered to leave the ship by the master or an officer of the ship or by any constable, or to return to the ship or persist in attempting to re-enter the ship after having been ordered to leave. It is also an offence to discharge any firearm, without reasonable cause, to the damage or danger of any person or property, whether the event occurs in any public place or elsewhere.

The Land Amendment Act, 1950, provides for several miscellaneous amendments of the Land Act, 1948. Land acquired by the Crown under sections 19 and 20 of the Maori Townships Act, 1910, is to become Crown land; the Land Settlement Board is authorized to delegate any of its powers to a Committee of the Board; land held for Government purposes and not required for the time being may be leased for such term and on such conditions as the Board in each case determines, but without the right of acquiring the freehold; and the Board may dispose of Crown land by public tender or public auction, and may impose building line restrictions. Commercial or industrial land may be taken on renewable lease or purchased for cash or on deferred payments. Renewable leases granted to ox-servicemen after the 1st November, 1950, are to have rental values and yearly rents based on 1942 values. There are also amended provisions relating to easements, and registration thereof, right of acquisition of fee simple, registration of variations of leases and licences, and payment of purchase money. Servicemen may apply for a review of liabilities where land is sold for cash, while a purchaser from a serviceman (who has not applied, although entitled to do so, for a review of liabilities) may have that right passed on to him. The right of review of liabilities is restricted to ex-servicemen who have obtained rehabilitation assistance for their settlement on the land. A section provides for a suspensory loan in cases where an ex-serviceman is settled on Crown land after the commencement of the Servicemen's Settlement Act, 1950, and is granted rehabilitation assistance for the purpose. This suspensory loan, which is not to exceed the difference between the 1942 value and the current market value, is not enforceable so long as the purchaser resides personally on the land and farms it exclusively for his own use, &c. If the purchaser carries this out for ten years, the loan is discharged. The right to a review of liabilities under the principal Act is not to apply to any suspensory loan.

The Wool Proceeds Retention Act, 1950, provides for the temporary retention of a portion of the proceeds received by wool growers from the sale of wool sold on or after the 13th November, 1950, and to wool exported by growers on or after the 1st December, 1950. The proportion to be retained is to be prescribed by regulation. There is also provision for further voluntary retention subject to regulations. All retained moneys will be held by the grower's trading bank in a special deposit account or on the grower's behalf by the stock and station agent with whom he keeps a current account, in a special deposit account at a bank. Such moneys will not bear interest, and are not alienable. Income tax on retained moneys is not to be chargeable until the moneys are paid out of the wool retention account. Power is given to make regulations for the purposes of the Act.

The Maori Purposes Act, 1950, amends the law relating to Maoris and Maori land and confers jurisdiction on the Maori Land Court. The Court is authorized to vest land jointly in a Maori and wife or husband of a Maori who is a discharged serviceman, and to combine areas of Maori land for partition purposes. Other sections in Part I of the Act authorize a trustee to borrow money for the purpose of providing housing for beneficiaries, and the Maori Trustee to advance moneys for the same purpose, provide that a Tribal Executive or a Tribal Committee may acquire land for tribal purposes, and for the Board of Maori Affairs to have an adequate power of delegation. Part II relates to compensation to lessees for improvements and include the provision that farm leases are to contain a right to compensation for improvements, unless the parties agree otherwise. Part III relates to unproductive Maori land, and Part IV contains miscellaneous provisions.

The Civil List Act, 1950, consolidates and amends the Civil List Act, 1920, and its amendments, the new Act to come into force generally on the 1st January, 1951. The allowance of the Governor-General is increased to £5,000 per annum, and all expenditure on travelling expenses is to be refunded in lieu of a fixed grant per annum. No person is to be appointed a Minister of the Crown or member of the Executive Council unless he or she is a member of the House of Representatives. The salary for a Minister without portfolio is fixed at £1,000 a year. Ministers and Parliamentary Under-Secretaries are given a travelling allowance of £3 3s. a day, and where without an official residence, a house allowance of £300 a year. The Act provides for the Speaker's salary of £1,000 and expense allowance of £200 a year, the payment to the Chairman of Committees of a salary of £750 and an expense allowance of £150 a year, and the payment to the Leader of the Opposition of an expense allowance of £200 a year. The Act also provides that, on a recommendation of a Royal Commission, the Governor-General may fix the salaries and allowances of Ministers and members of Parliament by Order in Council, in which event the salaries and allowances so fixed will be payable instead of those specified in the Civil List Act, 1950.

The Auckland Harbour Bridge Act, 1950, provides for the construction and operation of a bridge across the Waitemata Harbour. Part I constitutes an Authority, the functions of which will be to exercise control over all matters relating to the construction, maintenance, finance, and operation of the bridge Part II relates to the construction and maintenance of the bridge, and Part III to financial provisions for its construction and operation, the cost of both these being the responsibility of the Authority while repayment of any moneys borrowed by it are to be guaranteed by the Government. Part IV provides for the imposition and payment of tolls in respect of the use of the bridge, and Part V relates to the keeping and auditing of the Authority's accounts. Part VI provides for the making of by-laws by the Authority; Part VII contains special provisions relating to the assessment and payment of claims for compensation made by the Devonport Steam Ferry Co., Ltd., and its employees, and the Auckland Harbour Board; and Part VIII contains miscellaneous provisions.

Chapter 48. SECTION 48—OFFICIAL

GOVERNOR-GENERAL OF NEW ZEALAND

His Excellency Lieutenant-General Sir Bernard Cyril Freyberg, V.C., G.C.M.G., K.C.B., K.B.E., D.S.O., LL.D., D.C.L.

Military Secretary and Comptroller of the Household—Major P. P. Jeffreys, Irish Guards.

Official Secretary—D. E. Fouhy, Esq., C.B.E.

Aides-de-Camp—Captain the Earl of Leven and Melville, Coldstream Guards; Lieutenant R. M. Howson, R.N.

Honorary Aides-de-Camp—

  • Naval: Lieutenant-Commander J. D. Keay, V.R.D., R.N.Z.N.; Commander S. W. Hicks, V.F.D., R.N.Z.N.V.R.; Commander J. H. Seelye, V.R.D., R.N.Z.N.

  • Military: Lieutenant-Colonel G. L. Agar, O.B.E., R.N.Z. Signals; Lieutenant-Colonel G. P. Cade, D.S.O., R.N.Z.A.; Lieutenant-Colonel H. H. Parata, D.S.O., R.N.Z.A.C.; Lieutenant-Colonel J. R. Williams, D.S.O., R.N.Z. Inf. Corps.

  • Air: Squadron Leader J. J. do Willimoff, M.B.E., D.F.C., R.N.Z.A.F.; Squadron Leader S. G. Quill, D.F.C., R.N.Z.A.F.; Wing Commander C. A. Turner, O.B.E., R.N.Z.A.F.; Squadron Leader R. F. Watson, A.F.C., R.N.Z.A.F.

Honorary Physicians—Surgeon Captain E. S. McPhail, V.R.D., R.N.Z.N.; Wing Commander A. H. Marsh, R.N.Z.A.F.

Honorary Surgeon—Colonel E. L. Button, O.B.E., R.N.Z.A.M.C.

His Excellency assumed office on the 17th June, 1946.

For details of previous vice-regal representatives reference should be made to various issues of the Year-Book, while a complete list of the earlier vice-regal representatives will be found in the 1931 issue (pp. 59–60).

SUCCESSIVE MINISTRIES AND PREMIERS

SINCE THE ESTABLISHMENT OF RESPONSIBLE GOVERNMENT IN NEW ZEALAND IN 1856

Name of Ministry.Name of Premier.Assumed Office.Retired.
1. Bell-SewellHenry Sewell7 May, 185620 May, 1856.
2. FoxWilliam Fox20 May, 18562 June, 1856.
3. StaffordEdward William Stafford2 June, 185612 July, 1861.
4. FoxWilliam Fox12 July, 18616 Aug., 1862.
5. DomettAlfred Domett6 Aug. 186230 Oct., 1863.
6. Whitaker-FoxFrederick Whitaker30 Oct., 186324 Nov., 1864.
7. WeldFrederick Aloysius Weld24 Nov., 186416 Oct., 1865.
8. StaffordEdward William Stafford16 Oct., 186528 June, 1869.
9. FoxWilliam Fox28 June, 186910 Sept., 1872.
10. StaffordEdward William Stafford10 Sept., 187211 Oct., 1872.
11. WaterhouseGeorge Marsden Waterhouse11 Oct., 18723 Mar., 1873.
12. FoxWilliam Fox3 Mar., 18738 April, 1873.
13. VogelJulius Vogel, C.M.G.8 April, 18736 July, 1875.
14. PollenDaniel Pollen, M.L.C.6 July, 187515 Feb., 1876.
15. VogelSir Julius Vogel, K.C.M.G.15 Feb., 18761 Sept., 1876.
16. AtkinsonHarry Albert Atkinson1 Sept., 187613 Sept., 1876.
17. Atkinson (reconstituted)Harry Albert Atkinson13 Sept., 187613 Oct., 1877.
18. GreySir George Grey, K.C.B.15 Oct., 18778 Oct., 1879.
19. HallJohn Hall8 Oct., 187921 April, 1882.
20. WhitakerFrederick Whitaker, M.L.C.21 April, 188225 Sept., 1883.
21. AtkinsonHarry Albert Atkinson25 Sept., 188316 Aug., 1884.
22. Stout-VogelRobert Stout16 Aug., 188428 Aug., 1884.
23. AtkinsonHarry Albert Atkinson28 Aug., 18843 Sept., 1884.
24. Stout-VogelSir Robert Stout, K.C.M.G.3 Sept., 18848 Oct., 1887.
25. AtkinsonSir Harry Albert Atkinson, K.C.M.G.8 Oct., 188724 Jan., 1891.
26. BallanceJohn Ballance24 Jan., 18911 May, 1893.
27. SeddonRt. Hon. Richard John Seddon, B.C.1 May, 189321 June, 1906.
28. Hall-JonesWilliam Hall-Jones21 June, 19066 Aug., 1906.
29. WardRt. Hon. Sir Joseph George Ward, Bart, P.O., K.C.M.G.6 Aug., 190628 Mar., 1912.
30. MackenzieThomas Mackenzie28 Mar., 191210 July, 1912.
31. MasseyRt. Hon. William Ferguson Massey, B.C.10 July, 191212 Aug., 1915.
32. NationalRt. Hon. William Ferguson Massey, B.C.12 Aug., 191525 Aug., 1919.
33. MasseyRt. Hon. William Ferguson Massey, B.C.25 Aug., 191914 May, 1925.
34. BellHon. Sir Francis Henry Dillon Bell, G.C.M.G., K.C.14 May, 192530 May, 1925.
35. CoatesRt. Hon. Joseph Gordon Coates, B.C., M.C.30 May, 192510 Dec, 1928.
36. WardRt. Hon. Sir Joseph George Ward, Bart., P.O., G.C.M.G.10 Dec., 192828 May, 1930.
37. ForbesRt. Hon. George William Forbes, B.C.28 May, 193022 Sept., 1931.
38. CoalitionRt. Hon. George William Forbes, B.C.22 Sept., 19316 Dec, 1935.
39. LabourRt. Hon. Michael Joseph Savage, P.C.6 Dec, 19351 April, 1940.
40. LabourHon. Peter Eraser1 April, 194030 April, 1940.
41. LabourRt. Hon. Peter Fraser, P.C., C.H.30 April, 194013 Dec, 1949.
42. HollandRight Hon. Sidney George Holland, P.C.13 Dec, 1949 

EXECUTIVE COUNCIL, 1950

His Excellency the GOVERNOR-GENERAL

  • Right Hon. S. G. HOLLAND, B.C., Prime Minister, Minister of Finance, and Minister in Charge of Legislative and Audit Departments.

  • Hon. K. J. HOLYOAKE, Deputy Prime Minister, Minister of Agriculture, and Minister of Marketing.

  • Hon. W. SULLIVAN, Minister of Labour, Minister of Employment, Minister of Mines, and Minister of Immigration.

  • Hon. T. C. WEBB, Attorney-General, Minister of Justice, and Minister in Charge of Prisons, Patents Office, the Registrar-General's Office, Lands and Deeds and Electoral Office, and of Scientific and Industrial Research.

  • Hon. R. M. ALGIE, Minister of Education.

  • Hon. W. A. BODKIN, Minister of Internal Affairs, and Minister of Social Security.

  • Hon. C. M. BOWDEN, Minister of Customs, Minister of Stamp Duties, Minister in Charge of Land and Income Tax, and Associate Minister of Finance.

  • Hon. W. J. BROADFOOT, Postmaster-General and Minister of Telegraphs, and Minister in Charge of Valuation and Government Printing and Stationery Departments.

  • Hon. E. B. CORBETT, Minister of Lands, Minister of Forests, Minister of Maori Affairs, and Minister in Charge of Maori Trust Office and Scenery Preservation.

  • Hon. F. W. DOIDGE, Minister of External Affairs, Minister of Island Territories, and Minister in Charge of Broadcasting, and Tourist and Publicity.

  • Hon. W. S. GOOSMAN, Minister of Works, Minister of Railways, Minister of Transport, Minister of Marine, and Minister in Charge of Housing Construction, and State Hydro-electric Department.

  • Hon. T. L. MACDONALD, Minister of Defence, Minister of Rehabilitation, and Minister in Charge of War Pensions and Civil Aviation.

  • Hon. J. T. WATTS, Minister of Health, Minister of Industries and Commerce, and Minister of Supply.

  • Hon. W. H. FORTUNE, Minister Assistant to the Prime Minister, and Minister in Charge of Police, State Fire Insurance Office, Government Life Insurance Department, Government Superannuation Fund, Friendly Societies and National Provident Fund Departments.

  • Hon. J. R. MARSHALL, Minister Assistant to the Prime Minister, and Minister in Charge of State Advances Corporation, Census and Statistics Department, and Public Trust Office.

  • Hon. GRACE H. Ross, Minister for the Welfare of Women and Children.

  • Hon. W. J. POLSON*, Member of the Executive Council without Portfolio and Leader of the Legislative Council.

Clerk of the Executive Council—T. J. Sherrard, O.B.E.

* Resigned 2nd December, 1950.

HOLLAND MINISTRY, 1950

(Assumed Office, 13th December, 1949)

Name and Office.FromTo
Right Hon. Sidney George Holland, P.C.—  
  Prime Minister13 December, 1949 
  Minister of Finance13 December, 1949 
Keith Jacka Holyoake—  
  Minister of Agriculture13 December, 1949 
  Minister of Marketing13 December, 1949 
William Sullivan—  
  Minister of Labour13 December, 1949 
  Minister of Employment13 December, 1949 
  Minister of Mines13 December, 1949 
  Minister of Immigration13 December, 1949 
Thomas Clifton Webb—  
  Attorney-General13 December, 1949 
  Minister of Justice13 December, 1949 
  Ronald Macmillan Algie—  
  Minister of Education13 December, 1949 
William Alexander Bodkin—  
  Minister of Internal Affairs13 December. 1949 
  Minister of Social Security -19 December, 1950 
Charles Moore Bowden—  
  Minister of Customs13 December, 1949 
  Minister of Industries and Commerce13 December, 194919 December, 1950
  Minister of Stamp Duties13 December, 1949 
  Minister of Supply13 December, 194919 December, 1950
Walter James Broadfoot—  
  Postmaster-General13 December, 1949 
  Minister of Telegraphs13 December, 1949 
Ernest Bowyer Corbett—  
  Minister of Lands13 December, 1949 
  Minister of Forests13 December, 1949 
  Minister of Maori Affairs13 December, 1949 
Frederick Widdowson Doidge—  
  Minister of External Affairs13 December, 1949 
  Minister of Island Territories13 December, 1949 
William Stanley Goosman—  
  Minister of Works13 December, 1949 
  Minister of Transport13 December, 1949 
  Minister of Railways13 December, 1949 
  Minister of Marino13 December, 1949 
Thomas Lachlan Macdonald—  
  Minister of Defence13 December, 1949 
  Minister of Rehabilitation13 December, 1949 
Jack Thomas Watts—  
  Minister of Social Security13 December, 194919 December, 1950
  Minister of Health13 December, 1949 
  Minister of Industries and Commerce19 December, 1950 
  Minister of Supply19 December, 1950 

PARLIAMENTARY UNDER-SECRETARIES, 1950

  • SIDNEY WALTER SMITH, M.P., Parliamentary Under-Secretary in relation to the offices of the Minister of Agriculture and the Minister of Marketing. Appointed 13th December, 1949.

  • WILLIAM ALFRED SHEAT, M.P., Parliamentary Under-Secretary in relation to the office of the Minister of Works. Appointed 13th December, 1949.

  • EDGAR ROLLO NEALE, M.P., Parliamentary Under-Secretary in relation to the offices of the Minister of Customs, the Minister of Industries and Commerce, and to the Minister in Charge of the Land and Income Tax Department. Appointed 30th March, 1950.

PARLIAMENTARY SESSIONS

[For earlier Parliaments and sessions refer to pp. 59–60 of the 1930 and p. 986 of the 1940 editions of the Year-Book. On some occasions there have been long adjournments during sessions, without Parliament being prorogued.]

Parliament.Dates of Opening of Sessions.Dates of Prorogation.Dates of Dissolution.
Twenty-fourth23 Feb., 193211 May, 19321 Nov., 1935.
22 Sept., 193221 Mar., 1933
21 Sept., 193322 Dec., 1933
28 June, 193416 April, 1935
29 Aug., 193529 Oct., 1935
Twenty-fifth25 Mar., 193631 Oct., 193620 Sept., 1938.
9 Sept., 193716 Mar., 1938
28 June, 193819 Sept., 1938
Twenty-sixth27 June, 19391 Feb., 194030 Aug., 1943.
30 May, 194016 Dec., 1940
12 Mar., 194129 Oct., 1941 
11 Dec., 194114 Dec., 1942 
23 Feb., 194327 Aug., 1943 
Twenty-seventh22 Feb., 194415 Dec., 19444 Nov., 1946.
27 June, 19457 Dec., 1945
26 June, 194612 Oct., 1946 
Twenty-eighth24 June, 19471 Dec., 194723 Nov., 1949.
22 June, 19488 Dec., 1948
28 June, 194926 Oct., 1949 
Twenty-ninth27 June, 19506 Dec., 1950 

LEGISLATIVE COUNCIL*

ROLL OF MEMBERS OF THE LEGISLATIVE COUNCIL OF NEW ZEALAND, NOVEMBER, 1950

Speaker—Hon. T. O. BISHOP. Chairman of Committees—Hon. T. BLOODWORTH. Clerk of Parliaments and Clerk of the Legislative Council—C. M. BOTHAMLEY, J.P.

Name.Provincial District.Date of Appointment.

* The Legislative Council was abolished as from 1st January, 1951.

Alexander, Hon. Leonard AllenTaranaki22 June, 1950.
Allen, Hon. Andrew Henson, C.B.E.Otago22 June, 1950.
Alton, Hon. John SouthgateAuckland27 July, 1950.
Anderson, Hon. May PatriciaWestland31 Jan., 1946.
Bell, Hon. Cheviot Wellington DillonWellington27 July, 1950.
Bishop, Hon. Thomas OttoWellington15 Mar., 1950.
Black, Hon. WalterNelson8 Sept., 1948.
Bloodworth, Hon. ThomasAuckland8 Sept., 1948.
Burrell, Hon. Mrs. Cora LouisaCanterbury22 June, 1950.
Campbell, Hon. ArchibaldOtago15 Jan., 1947.
Cockerell, Hon. Allan Richmond, D.S.O.Otago22 June, 1950.
Croker, Hon. Cyril HendryTaranaki27 July, 1950.
Cumming, Hon. JamesWellington23 June, 1948.
Davis, Hon. Eliot RypinskiAuckland8 Sept., 1948.
Dickie, Hon. Harold GaltAuckland22 June, 1950.
Dreaver, Hon. Mrs. Mary Manson, M.B.E.Auckland31 Jan., 1946.
Duncan, Hon. John EdwardAuckland22 Sept., 1944.
Eddy, Hon. RichardWellington23 June, 1948.
Endean, Hon. William PhillipsAuckland22 June, 1950.
Finlayson, Hon. James AlexanderAuckland22 June, 1950.
Girling, Hon. William James, C.B.E.Marlborough22 June, 1950.
Gould, Hon. Mrs. Ethel Marion, M.B.E.Auckland22 June, 1950.
Grounds, Hon. WilliamAuckland15 July, 1947.
Hamilton, Hon. Edwin Henry StaplesCanterbury22 June, 1950.
Hanan, Hon. Josiah AlfredOtago15 July, 1947.
Kelly, Hon. Francis PatrickHawke's Bay22 June, 1950.
Livingstone, Hon. Henry GilliesCanterbury22 June, 1950.
McLeod, Hon. BruceWellington22 June, 1950.
McMillan, Hon. Robert ThomasCanterbury22 June, 1950.
Mackley, Hon. Garnet Hercules, C.M.G.Wellington22 June, 1950.
Martin, Hon. William LeeAuckland31 Jan., 1946.
Marumaru, Hon. Hoeroa Taraua UtikuWellington27 July, 1950.
Mazengarb, Hon. Oswald Chettle, K.C.Wellington22 June, 1950.
Murdoch, Hon. DavidOtago22 June, 1950.
O'Byrne, Hon. Thomas FrancisSouthland23 June, 1948.
O'Kane, Hon. Patrick JosephHawke's Bay8 Sept., 1948.
O'Shea, Hon. Alexander PatersonWellington22 June, 1950.
Paul, Hon. John ThomasWellington9 Sept., 1946.
Perry, Hon. Sir WilliamWellington23 June, 1948.
Pitts-Brown, Hon. HilcoteNelson22 June, 1950.
Poison, Hon. William JohnTaranaki22 June, 1950.
Rattray, Hon. Neill Alymer, M.B.E.Canterbury22 June, 1950.
Roberts, Hon. JamesWellington17 June, 1947.
Robertson, Hon. JohnWellington31 Jan., 1946.
Rogers, Hon. William JamesWellington15 July, 1947.
Ryall, Hon. JohnWestland15 July, 1947.
Thompson, Hon. James FrederickWellington22 June, 1950.
Waite, Hon. Fred, C.M.G., D.S.O., O.B.E.Otago23 June, 1948.
Weston, Hon. Mrs. Agnes LouisaWellington22 June, 1950.
White, Hon. Charles Gilbert, O.B.E.Wellington22 June, 1950.
Wilson, Hon DavidWellington17 June, 1947.
Young, Hon. Frederick GeorgeAuckland8 Sept., 1948.
Young, Hon. WilliamOtago22 June, 1950.

HOUSE OF REPRESENTATIVES

ROLL OF MEMBERS OF THE HOUSE OF REPRESENTATIVES, MARCH, 1951

Speaker—Hon. MATTHEW HENRY ORAM, M.B.E. Chairman of Committees—CYRIL GEOFFREY EDMUND HARKER. Clerk of the House—H. N. DOLLIMORE, LL.B.

Name.Electoral District.

* Replaces Rt. Hon. P. Fraser, P.C., C.H., deceased 12th December, 1950.

For European Electorates 
Aderman, Ernest PhilipN. Plymouth.
Algie, Hon. Ronald MacmillanRemuera.
Anderton, William TheophilusAuckland Central.
Armstrong, Arthur ErnestNapier.
Bodkin, Hon. William AlexanderCentral Otago
Bowden, Hon. Charles MooreKarori.
Broadfoot, Hon. Walter JamesWaitomo.
Carr, Rev. Clyde LeonardTimaru
Chapman, Charles HenryWellington Central.
Combs, Harry ErnestOnslow.
Connolly, Philip George, D.S.C.Dunedin Central.
Cooksley, Bertie Victor, M.M.Wairarapa.
Corbett, Hon. Ernest BowyerEgmont.
Cotterill, Joseph Bernard FrancisWanganui.
Doidge, Hon. Frederick WiddowsonTauranga.
Eyre, Dean JackNorth Shore.
Fortune, Hon. Wilfred HenryEden.
Freer, Warren WilfredMount Albert.
Gerard, Richard GeoffreyAshburton.
Gillespie, William HenryHurunui.
Goosman, Hon. William StanleyPiako.
Gordon, Edward Brice KillenRangitikei.
Gotz, Frank Leon ArohaOtahuhu.
Hackett, FrederickGrey Lynn.
Halstead, Eric HenryTamaki.
Hanan, Josiah RalphInvercargill.
Harker, Cyril Geoffrey EdmundHawke's Bay.
Hayman, Thomas LeonardOamaru.
Herron, George RichardAwarua.
Holland, Rt. Hon. Sidney George, P.C.Fendalton.
Holyoake, Hon. Keith JackaPahiatua.
Howard, Miss Mabel BowdenSydenham.
Hudson, Walter ArthurMornington.
Johnstone, HallyburtonRaglan.
Jones, Hon. FrederickSt. Kilda.
Jones, Sydney IonovahHastings.
Kearins, PatrickWaimarino.
Keeling, Reginald AlfredGisborne.
Kent, James BeggWestland.
Kidd, David CampbellWaimate.
McAlpine, John KennethSelwyn.
McCombs, Terence HendersonLyttelton.
Macdonald, RitchiePonsonby.
Macdonald, Hon. Thomas LachlanWallace.
Macfarlane, Robert MafekingChristchurch Central.
McKeen, RobertIsland Bay.
McLagan, Hon. AngusRiccarton.
Maher, James JosephOtaki.
Marshall. Hon. John RossMount Victoria.
Mason, Hon. Henry Great-head RexWaitakere.
Massey, John NormanFranklin.
Mathison, JohnAvon.
Moohan, MichaelPetone.
Murdoch, Alfred JamesMarsden.
Nash, Rt. Hon. Walter, P.C.Hutt.
Neale, Edgar Rollo, O.B.E.Nelson.
Nordmeyer, Hon. Arnold Henry*Brooklyn.
Oram, Hon. Matthew Henry, M.B.E.Manawatu.
Osborne, Arthur GeorgeOnehunga.
Parry, Hon. William EdwardArch Hill.
Rae, Duncan McFadyenParnell.
Rae, JohnRoskill.
Ross, Hon. Mrs. Grace HildaHamilton.
Roy, James Alexander McLean, M.C.Clutha.
Semple, Hon. RobertMiramar.
Shand, Thomas PhilipMarlborough.
Sheat, William AlfredPatea.
Sim, Geoffrey FanthamWaikato.
Skinner, Hon. Clarence Farringdon, M.C.Buller.
Smith, Sidney WalterHobson.
Sullivan, Hon. WilliamBay of Plenty.
Sutherland, Andrew SinclairHauraki.
Tennent, William BlairPalmerston N.
Walls, RobertNorth Dunedin
Watts, Hon. Jack ThomasSt. Albans.
Webb, Hon. Thomas CliftonRodney.
For Maori Electorates 
Omana, TiakiEastern Maori.
Paikea, Tapihana ParaireNorthern Maori.
Ratana, Mrs. Iriaka MatiuWestern Maori.
Tirikatene, Hon. Eruera TihemaSouthern Maori.

JUDICIARY

Judges of the Supreme Court and Court of Appeal.—Chief Justice: Right Hon. Sir Humphrey O'Leary, P.C., K.C.M.G. Puisne Judges: Hon. A. Fair; Hon. Sir Erima Harvey Northcroft; Hon. G. P. Finlay; Hon. K. M. Gresson; Hon. J. Stanton; Hon. J. D. Hutchison; Hon. E. P. Hay; Hon. P. B. Cooke, M.C.; Hon. F. B. Adams: Hon. C. R. Fell (temporary).

Judges of the Arbitration Court.—Hon. A. Tyndall, C.M.G.; Hon. W. F. Stilwell. Deputy Judges: Hon. D. J. Dalglish; Hon. O. G. Stevens.

Judge of Compensation Court.—Hon. F. W. Ongley.

Judge of Land Valuation Court.—Hon. K. G. Archer.

HONOURS

Since the preceding issue of the Year-Book the following honours have been conferred by His Majesty the King for services rendered in connection with New Zealand:—

  • [(a) Signified conferred in January, 1950;

  • (b) in June, 1950; (c) in January, 1951.]

CIVIL DIVISION

Knight Commander of the Most Excellent Order of the British Empire (K.B.E.)

John Robert McKenzie (a): Wilfrid Joseph Sim, M.C., K.C. (c).

Knight Bachelor

John Andrew Charles Allum, C.B.E. (b).

Ernest Herbert Andrews, C.B.E. (b).

William Appleton (b).

Thomas Andrew Duncan (c).

Alexander Howat Johnstone, O.B.E., K.C. (a).

Companion of the Most Distinguished Order of Saint Michael and Saint George (C.M.G.)

W. H. Cocker (a).

Dr. E. H. M. Luke (a).

Commander of the Most Excellent Order of the British Empire (C.B.E.)

T. C. Brash (c); J. Cummings (a); W. J. Girling (b); G. H. Grigg (b); W. E. Hale (b); Miss M. I. Lambie, O.B.E. (a); J. A. Nash (c); Dr. A. B. Pearson (b); W. N. Perry (b); Professor F. G. Soper (a); C. A. Wilkinson (c).

Officer of the Most Excellent Order of the British Empire (O.B.E.)

J. W. Andrews (b); Dr. H. E. Annett (a); A. Barnett (c); W. G. Belton (b); C. O. Bell (a); J. Bitchener (a); T. O. W. Brebner (b); A. F. B. Broadhurst (b); H. D. Caro (b); S. S. McP. Dean (c); Miss H. McD. Findlay (a); A. E. Flower (b); Dr. R. S. R. Francis (a); Dr. T. Gilray (c); W. A. Hadlee (b); H. Hill (a); W. Hotu (a): Miss A. G. Kane (c); E. B. Levy (b); Dr. A. C. McKillop (c); P. J. Mills (c); G. E. G. Minhinnick (b); Rev. Dr. J. J. North (a); D. W. Russell (b); S. B. Smith (a); Rev. E. Te Tuhi (c); C. W. Tyler (b); Miss M. G. Widdowson (c); M. H. Wynyard (c).

Member of the Most Excellent Order of the British Empire (M.B.E.)

Mrs. E. K. N. Adams (b); F. J. Ballinger (c); A. G. D. Bayfield (c); F. T. Bellringer (c); Miss S. M. Beresford (a); Mrs. A. A. Boland (b); Colonel W. J. M. Bourchier (b); Mrs. M. B. Bowyer (a); Miss M. G. Brown (c): Mrs. E. Coats (b); D. H. Cockburn (a); J. R. H. Cooksey (b); Mrs. M. B. Coutts (b); G. Dash (c); W. J. Davies (a); Mrs. W. M. Dive (a); R. J. Estall (b); Miss E. M. Gibson (c); F. E. Greenish (c); Rev. T. Halliday (b): J. R. Hardie (c); Mrs. A. J. L. Henderson (c); Mrs. M. R. Hudson (b): Mrs. H. M. Jackson (c); J. J. H. Lauder (b); T. M. McAhan (c); J. A. S. MacKay (c); T. McGhie (a); Miss E. M. Le Lievre (a); Miss M. V. Miller (a); A. Mitchell (c): Mrs. E. Mitchell (a): C. R. Moore (c); Mrs. F. M. Neale (c);

Miss I. G. Owen (a); F. Purnell (b); I. Rapana (a); Mrs. S. A. D. Rickerby (c); W. D. Shelton (b); J. C. H. Somerville (b); M. S. Spence (b); S. P. Spiller (a); A. J. Stratford (a); Rev. Canon P. Temuera (b); C. S. Thompson (b); L. J. Vangioni (c); Mrs. I. C. Wilks, A.R.R.C. (a).

King's Commendation (Civil) for Valuable Service, in the Air

A. M. Pritchard (c); Captain C. Griffiths (c).

MILITARY DIVISION

Knight Commander of the Most Excellent Order of the British Empire (K.B.E.)—

Air Vice-Marshal Arthur de Terrotte Neville, C.B., C.B.E. (a).

Companion of the Most Honourable Order of the Bath (C.B.)

Captain (Commodore, Second Class) G. W. G. Simpson, C.B.E., R.N. (b); Air Commodore S. Wallingford, C.B.E. (c).

Commander of the Most Excellent Order of the British Empire (C.B.E.)

Brigadier W. H. B. Bull, O.B.E. (b); Brigadier W. G. Gentry, D.S.O., O.B.E. (a); Acting Captain (S) G. T. Millet, R.N. (c).

Officer of the Most Excellent Order of the British Empire (O.B.E.)

Lieutenant-Colonel J. Brooke-White (b); Lieutenant-Colonel A. R. Currie, D.S.O. (c); Wing Commander A. B. Greenaway (b); Wing Commander A. M. S. Manhire (c); Commander R. E. Washbourn, D.S.O., R.N. (a); Wing Commander W. G. Woodward (a).

Member of the Most Excellent Order of the British Empire (M.B.E.)

Senior Commissioned Gunner (T.A.S.) R. E. Ansley (c); Warrant Officer (Second class) J. J. Bergman (b); Captain (Temporary Major) L. F. Brooker (c): Mr. A. B. Cox, Temporary Commissioned Gunner (b); Warrant Officer A. P. H. Lee (c); Senior Commissioned Wardmaster S. A. Higgs (a); Lieutenant Commander N. H. Hope (c); Flight Lieutenant S. M. Hope (a): Honorary Captain C. H. Hoskin (a); Major H. W. Jacka (b); Captain R. F. Joyce (b); Lieutenant (S) T. L. Luckman (a); Flight Lieutenant R. A. Manners (b); Warrant Officer Second Class (Temporary Warrant Officer First Class) N. S. Pedersen (c); Warrant Officer R. H. Simpson (a); Warrant Officer W. S. Smith (c); Warrant Officer (First Class) W. S. Valentine (a).

Air Force Cross (A.F.C.)

Flight Lieutenant J. P. O'Donnell (c); Flight Lieutenant A. L. Parlane (a): Squadron Leader R. Y. Powell, D.F.C. (b); Flight Lieutenant J. N. Trolove (c).

Air Force Medal (A.F.M.)

Pilot R. A. G. Plane (c).

British Empire Medal (B.E.M.)

Staff Sergeant D. J. Abel (b); Chief Petty Officer (R) G. K. Alexander (c); Chief Petty Officer I. C. Brown (a); Sergeant D. J. Caughley (b); Sergeant G. Eltringham (b); Flight Sergeant H. B. Fowler (a); Petty Officer L. Fullerton (b); Flight Sergeant L. F. Gibbs (a); Master-at-arms W. V. C. Hogan (a): Chief Engine-room Artificer P. R. Honton (a); Chief Electrician J. W. Jones (c); Sergeant A. J. Lark, M.M. (c); Chief Petty Officer Telegraphist A. F. B. Lutman (b); Sergeant Jean Mary Murtagh (a); Chief Wren First Class D. Pinson (c); Flight Sergeant J. E. C. Price (a); Flight Sergeant D. J. T. Pryor (c); Chief Petty Officer Stoker Mechanic J. E. L. Sevi (a); Sergeant Joan Pamela Smith (a); Staff Sergeant (Temporary Warrant Officer Second Class) J. H. Swann (c); Petty Officer K. L. Wadham (a).

Associate of the Royal Red Cross (A.R.R.C.)

Charge Sister P. I. Johnston (a).

Commendation for Valuable Service in the Air

Master Signaller H. J. Haberfield (a); Flying Officer A. C. Hilliam (a).

GOVERNMENT DEPARTMENTS

LIST OF DEPARTMENTS OF THE NEW ZEALAND GOVERNMENT, WITH TITLES AND NAMES OF PERMANENT HEADS, JANUARY, 1951

Department.Permanent Head.
Title.Name.
AgricultureDirector-GeneralE.J. Fawcett, M.A. (Cantab.).
AirChief of Air Staff and First Air Force Member of the Air BoardAir Vice-Marshal D. V. Carnegie, C.B., C.B.E., A.F.C.
 Air SecretaryT. A. Barrow.
Civil AviationDirectorE. A. Gibson, A.M.I.C.E., A.F.R.Ae.S.
MeteorologicalDirectorWing Commander M. A. F. Barnett, M.Sc., Ph.D., F.Inst. P.
ArmyChief of the General StaffMajor-General K. L. Stewart, C.B., C.B.E., D.S.O.
 Army SecretaryF. B. Dwyer.
AuditController and Auditor-GeneralJ. P. Rutherford.
BroadcastingDirectorW. Yates.
Census and StatisticsGovernment StatisticianG. E. F. Wood. O.B.E., M.A.
Crown LawSolicitor-GeneralH. E. Evans, B.A., LL.M.
CustomsComptrollerD. G. Sawers.
EducationDirectorC. E. Beeby, M.A., Ph.D.
External AffairsSecretaryA. D. M. McIntosh, M.A.
Government Life InsuranceCommissionerW. K. Watson.
Health.Director-GeneralJ. Cairney, M.D., Ch.B., F.R.A.C.S., D.Sc.
Mental Hygiene DivisionDirectorR. G. T. Lewis, M.B., Ch.B.
Industries and CommerceSecretaryP. B. Marshall.
Price Control DivisionDirectorH. L. Wise, M.Com.
Internal AffairsSecretary and Clerk of WritsA. G. Harper.
Dominion MuseumDirectorDr. R. A. Falla, D.Sc., M.A.
National Art GalleryDirectorS. B. Maclennan. A.R.C.A.
Island TerritoriesSecretaryR. T. G. Patrick.
Justice and PrisonsSecretary for Justice, Controller-General of Prisons, Chief Probation Officer, Chief Electoral Officer, Secy, for Lands and DeedsS. T. Barnett.
Patent OfficeCommissionerA. H. Ihle.
Office of Registrar-GeneralRegistrar-GeneralP. H. Wylde.
Labour and EmploymentSecretary of Labour and Director of EmploymentH. L. Bockett.
Land and Income TaxCommissioner of TaxesF. G. Oborn.
Stamp DutiesDeputy Commissioner of Taxes (Stamp Duties)F. R. Macken, LL.M.
Lands and SurveyDirector-General and Land Purchase ControllerD. M. Greig.
Law DraftingLaw DraftsmanH. D. C. Adams.
LegislativeClerk of House of RepresentativesH. N. Dollimore, LL.B.
Maori AffairsUnder-Secretary, and Maori TrusteeT. T. Ropiha.
MarineSecretaryW. C. Smith.
MarketingDirectorL. C. Webb, M.A.
MinesUnder-SecretaryC. H. Benney.
NavyFirst Naval Member and Chief of the Naval StaffCommodore F. A. Ballance, D.S.O., R.N.
 Navy SecretaryD. A. Wraight.
New Zealand Forest ServiceDirectorA. R. Entrican, A.M. Inst. C.E.
PoliceCommissionerJ. Bruce Young.
Post and TelegraphDirector-GeneralP. N. Cryer.
Prime Minister'sPermanent HeadA. D. M. McIntosh, M.A.
 Secretary to CabinetF. Shanahan, LL.M.
 Chief Private SecretaryK. M. Sleight.
Printing and StationeryGovernment PrinterR. E. Owen.
Public Service CommissionChairman of CommissionR. M. Campbell, M.A., LL.B., Ph.D.
 MembersG. T. Bolt.
  A. H. O'Keefe, B.Com.
Public TrustPublic TrusteeH. W. S. Pearce.
RailwaysGeneral ManagerF. W. Aickin, M. Inst. T., Barrister and Solicitor.
RehabilitationDirectorF. Baker, D.S.O.
Scientific and Industrial ResearchSecretaryF. R. Callaghan, M.A.
Social SecurityChairman Social Security Commission and Secretary for War PensionsB. F. Waters.
State Advances Corporation of New ZealandJoint Managing DirectorsA. D. Park, C.M.G.
  T. N. Smallwood, O.B.E.
 ManagerF. W. E. Mitchell.
State Fire and Accident InsuranceGeneral ManagerA. St. C. Belcher.
State Hydro-electricGeneral ManagerA. E. Davenport, B.E., M.I.E.E.
Tourist and PublicityGeneral ManagerR. W. Marshall.
TransportCommissionerG. L. Laurenson, A.M. Inst. C.E.
TreasurySecretaryB. C. Ashwin, C.M.G., M.Com.
SuperannuationSecretaryG. J. B. Merrington.
National Provident and Friendly SocietiesSuperintendentW. L. Comrie.
Government Actuary's BranchGovernment ActuaryS. Beckingsale, F.I.A.
ValuationValuer-GeneralW. R. Beattie.
Works, Ministry ofCommissioner of WorksE. R. McKillop, A.M.I.C.E.
 Engineer-in-ChiefF. Langbein, A.M.I.C.E.
Housing DivisionDirectorR. B. Hammond, M.T.P.I. (Lon.).

THE PUBLIC SERVICE

The statutory authority for the control of the Public Service of New Zealand, other than the Post and Telegraph Department, the Railways Service, the Teaching Service, the uniform branches of the Police, Navy, Army, and Air Departments, the Legislative Department, the Judiciary and the Magistracy, and in a few other minor instances, is the Public Service Act, 1912, and its amendments.

Prior to the passing of this Act, a Royal Commission had been set up to report on conditions in the Public Service, and it was largely on the report of this Commission that the Act was based. The Commission found that—

  1. Persons were entering the Service without proper qualifications:

  2. There was no proper classification of positions, and no consistency in the salaries paid for different positions:

  3. Salary increases were not given in accordance with a defined scheme, and there was too much emphasis on seniority:

  4. Anomalies in salaries and working-conditions arose through each Department tending to be a law unto itself. There was no system enabling men to transfer from one Department to another:

  5. Political influence was alleged to exist:

  6. Discontent existed within the Service, with impairment of morale and efficiency.

The Commission considered that the characteristics of the Service should be—

  1. Entry by competitive examination;

  2. Probation before final admission;

  3. Security of tenure during good behaviour after admission;

  4. Promotion by merit; and

  5. Pensions on retirement.

In the view of the Royal Commission, the first essential was the appointment of a Board of Management to control the whole Service. Although the principle of control by an independent central agency was accepted, the Public Service Act, 1912, provided for the administration of the Act to be vested in one Commissioner and two Assistant Commissioners. Although on occasions there were no Assistant Commissioners, this system continued until 1946, except for a short period from 1936 to 1938, when there were two joint Commissioners appointed in terms of section 41 of the Finance Act, 1936. In 1946, however, on the retirement of the then Commissioner, the Public Service Amendment Act, 1946, was passed, providing for the control of the Public Service by a Commission of three as from 1st November, 1916.

The members of the Commission are appointed by the Governor-General in Council on the recommendation of the Prime Minister, a feature being that one of the members so appointed is to be a nominee of the New Zealand Public Service Association. Public servants thus have direct representation in the control of the Public Service, since through their Association they are able to nominate one of their number for selection as a member of the Commission. The Chairman of the Commission is appointed by the Governor-General in Council.

Except that the term of office of the first Chairman of the Commission is seven years, each member is appointed for a period of five years, but is eligible for reappointment. The salaries of the members of the Commission are fixed by statute (£1,750 per annum in the case of the Chairman and £1,650 per annum for each of the other two members) and are paid out of the Consolidated Fund from year to year without any further authority being necessary.

The Governor-General has power to suspend any member of the Commission from office for misbehaviour or incompetence. A full statement of the grounds of suspension must be laid before Parliament, if in session, within seven days, or, if Parliament is not in session, within seven days after the beginning of the next session. A Commissioner suspended in this way is restored to office if Parliament, within twenty-one days from the time the statement is laid before it, does not pass a resolution to the effect that the Commissioner should be removed from office. His office, however, terminates on the happening of certain other contingencies as set out in section 11 of the Public Service Act.

The Commission's status differs from that of the normal Permanent Head in that it is not controlled by any Minister of the Crown. The Public Service Act provides that a person is liable to a heavy penalty if he endeavours to influence the Commission in regard to another person's appointment, promotion, or salary. Within the limits defined by the Act, the Commission is supreme, but appeals against certain of its decisions can be made to the Board of Appeal, which was created by the Public Service Act, 1912. The Commission is required to furnish a report at least annually, for presentation to Parliament, on the condition and efficiency of the Public Service. In this report it is required to indicate any measures and changes which are considered necessary for the efficient working of the whole or any part of the Service.

The functions of the Commission include—

  1. Control of recruitment to the Service:

  2. The classification of positions according to their importance and character:

  3. The maintenance of a fair and efficient system of promotion:

  4. The protection of the independence and integrity of the Service:

  5. The increase in departmental organization and methods:

  6. The maintenance of discipline:

  7. The regulation of a variety of points connected with personnel control—e.g., leave, hours of work, payment of allowances, &c.

To enable the Commission to discharge these functions various powers have been conferred upon it. For instance, it can order an inspection of any Department to ascertain whether there is a proper standard of efficiency and economy. It can transfer surplus staff to other Departments or dispense with their services. It has power in certain circumstances to reduce or increase an officer's salary. Decisions as to promotions and transfers are made by the Commission, and certain disciplinary powers are vested in it. To facilitate the administration of the Act the Commission has power to make regulations, with the approval of the Governor-General in Council. The regulations made to date are comprehensive and form a code.

CLASSIFICATION

For the purposes of classification, five Divisions have been created by statute and these are:—

  1. Administrative.—Includes such positions as the Governor-General, by notification in the New Zealand Gazette, may declare to belong to this Division. Such positions are those of Permanent Heads and their Deputies. Officers in this Division are paid such emoluments as may be provided in the annual appropriations authorized by Parliament.

  2. Professional.—Includes officers whoso duties involve special skill or technical knowledge usually acquired only in some profession, and whose positions the Commission directs to be included in this Division. The schedule of salaries payable at December, 1950, is given below:—

 £
Class VI170
 195
 230
 260
 290
 335
 365
 390
 415
 460
 485
Class V525
 550
Class IV580
 605
Class III635
 660
Class II685
 710
Class I760
 810
Class Sp., 1860
2900
3950
41,000
51,050
61,100
71,125
81,150
91,175
101,200

The commencing rate for entrants with School Certificate or old University Entrance Examination is £195 per annum, and £230 per annum for entrants with new University Entrance Examination or endorsed School Certificate. There are also special commencing rates for entrants with University degrees, ranging from £365 to £550 according to the degree held. The minimum adult remuneration is £340 for males and £260 for females, while the minimum rate for married male employees is £370 10s. per annum.

In general the rates given in the preceding paragraph and in the scale of salaries set out previously were increased by 15 per cent. as from the 15th February, 1951.

Subject to good and diligent conduct, an officer in Class VI receives the amounts shown for that class year by year. Promotion beyond Class VI depends on the officer's ability and upon vacancies occurring in the higher grades, or on the growth and importance of the position held by the officer. In special cases, salaries in excess of the maximum for the Division may be paid with the approval of the Commission, but in such cases provision must be made in the annual estimates of expenditure, and the amount of increase must be appropriated by Parliament.

  • (c) Clerical.—This includes such officers as the Commission may from time to time direct to be included in that Division. It embraces jobs ranging from routine clerical work to work of a high executive character. Payment of salaries follows the scale set out for the Professional Division.

  • (d) Educational.—Includes teachers in Maori schools, in the Correspondence Schools, and in special institutions, but not the great body of primary and secondary school teachers who are servants of various Education Boards, Boards of Governors, &c.

  • (e) General.—Includes positions not classified in any other Division. Salary rates are on the basis of a fixed amount or on a scale determined by the Commission.

The Commission is required to grade officers in these Divisions according to their fitness and the character and importance of the duties performed by them. The Act provides for a general regrading of the whole of the Service every five years. The latest regrading took place as from 1st April, 1946. One was to have been carried out in 1942, but was postponed owing to war conditions. Where a position has grown in importance and responsibility, the Commission has power to alter the grading of that position at any time.

Since 1948 salary rates for the majority of public servants and school-teachers have been prescribed by the Government Service Tribunal, which comprises a Judge of the Arbitration Court as Chairman, a Government member, and a member appointed on the joint nomination of Service organizations.

PROMOTION OF OFFICERS

Efficiency and suitability are the factors which determine promotion. Only where it is not possible to separate officers on these grounds is seniority relevant. Relative efficiency of officers is determined by reference to special qualifications and aptitude for discharge of duties of the office to be filled, together with merit, diligence, and good conduct. Vacancies are usually advertised in the Public Service Official Circular (a publication circulating throughout the Public Service) and, where necessary, in newspapers.

PUBLIC SERVICE BOARD OF APPEAL

Officers have the right of appeal concerning:—

  1. The gradings allotted by the Commission at the five-yearly regrading of the Service:

  2. Promotions approved by the Commission if the appellant had applied for the position or if applications were not called for the position and in either case the appellant's appointment thereto would have involved his promotion:

  3. Determinations and penalties imposed by the Commission in respect of charges made against officers.

The constitution of the Board of Appeal is as under:–

  1. Two persons, of whom at least one must be an officer or retired officer of the Public Service, appointed by the Governor-General:

  2. Two persons, being officers of the Public Service, elected by officers of the Public Service.

One of the members appointed by the Governor-General is selected by him as Chairman. Only one of the elected members is entitled to sit at the hearing of any appeal. Decisions of the Board of Appeal are final, and no writ of mandamus, prohibition, or certiorari lies in respect thereof to any Court. For the year ended 31st March, 1950, the appeals lodged totalled 1,317, and these were dealt with as follows: allowed, 15; not allowed, 692; withdrawn, 399; did not lie, 84, and lapsed, 127.

An officer may lodge more than one appeal, and in many instances officers have lodged over 3 and up to 12.

A Special Board of Appeal to hear appeals arising out of the appointment of temporary employees to permanent positions was provided for by the Public Service Amendment Act, 1946.

RECRUITMENT

Except with the permission of the Governor-General, no person is admitted to the New Zealand Public Service unless he is a British subject. All admissions are, in the first instance, on probation, the usual probationary period being two years. An employee may be dispensed with at any time during this period. With the abolition of the Public Service Entrance Examination, appointments to Cadetships in the Clerical Division are offered to boys and girls with School Certificate, University Entrance, or Higher Leaving Certificate. Graduates are also appointed. The salary rates on commencement vary according to the educational qualifications of the individual.

NUMBER OF PUBLIC SERVANTS

The total number of permanent and temporary employees (excluding casuals) in Departments under the control of the Commission as at 1st April, 1950, was approximately 32,200, as compared with 31,100 twelve months earlier. The total as at 1st April, 1950, consisted of 30,000 permanent officers and 2,200 temporary employees. The Public Service Amendment Act, 1946, provided machinery whereby temporary employees who were occupying permanent positions as at 1st November, 1946, became eligible for appointment to the permanent staff. This machinery has been put into operation, and most employees previously temporary are now permanent officers.

Staffs on Railways, Post and Telegraph, and Police Departments will be found in appropriate sections elsewhere in this volume, as will also the number of schoolteachers. The number of workmen in the employ of the Ministry of Works will be found in the section on Employment and Unemployment, and of miners, &c., in State coal-mines in the Mining section. While not exhaustive, the foregoing cover substantially the whole of the employees of the State with the exception of the Armed Services which are shown in the Defence section. Civilian personnel of the Services are included in the figures shown in the preceding paragraph.

NEW ZEALAND REPRESENTATIVES OVERSEAS

MARCH, 1951

Australia.—G. E. L. Alderton, High Commissioner (Official Secretary, R. L. Hutchens; Assistant Secretary, O. P. Gabites), Canberra, A.C.T. J. A. Malcolm, Senior New Zealand Trade Commissioner; A. C. Davys, Assistant New Zealand Government Trade Commissioner; R. W. Coupland, Travel Manager, Department of Tourist and Publicity, 14 Martin Place (P.O. Box 365F), Sydney. N. F. Gouffe, Travel Manager, Department of Tourist and Publicity, 428 Collins Street (P.O. Box 2136), Melbourne. South Australia Intelligence and Tourist Bureau, Hon. New Zealand Government Agents, King William Street, Adelaide. Dewar and Jones, Hon. New Zealand Government Agents, King House, Queen Street, Brisbane. Western Australia Government Tourist Bureau, Hon. New Zealand Government Agents, Perth.

Burma.—New Zealand Insurance Co., Hon. New Zealand Government Agents, Rangoon.

Canada.—T. C. A. Hislop, C.M.G., High Commissioner (Official Secretary, A. R. Perry; Assistant Secretary, B. S. Lendrum), 105 Wurtemburg Street, Ottawa. B. R. Rae. Trade Commissioner, 609 Sun Life Building, Montreal. E. E. Auckland, Hon. New Zealand Government Agent, P.O. Box 16, Vancouver, B.C.

Fiji.—W. R. Carpenter and Co., Ltd., Hon. New Zealand Government Agents, Suva. Union Steam Ship Co., Ltd., Agents, Department of Tourist and Publicity, Suva.

France.—Legation, 9 Rue Leonard de Vinci, Paris: Miss J. R. McKenzie, Chargé d'Affaires a.i.; First Secretary, D. P. Costello; Second Secretary, W. W. Mason.

Hawaii.—H. C. Tennent, Hon. New Zealand Government Agent, Nuuanu Avenue (P.O. Box 3049), Honolulu. Hawaiian Tourist Bureau, Agent, Department of Tourist and Publicity, Honolulu.

India.—R. J. Inglis, Trade Commissioner; G. S. Cosgrove, Assistant Trade Commissioner, Mercantile Bank Buildings, Mahatma Gandhi Road (P.O. Box 1194), Bombay. New Zealand Insurance Company, Hon. New Zealand Government Agents, Calcutta.

Japan.—R. L. G. Challis, New Zealand Government Trade Representative, care of British Commonwealth Sub-area Post-office, Tokyo.

Netherlands.—J. V. Brennan, Consul, Anna Paulowna Straat, The Hague.

South Africa.—H. J. Constable, Hon. New Zealand Government Agent, P.O. Box 1909, Johannesburg.

United Kingdom of Great Britain and Northern Ireland.—Right Hon. W. J. Jordan, P.O., High Commissioner (Official Secretary, Major-General W. G. Stevens, C.B., C.B.E.); External Affairs Officer, Sir Cecil Day, C.M.G., C.B.E.; Assistant External Affairs Officers: N. S. McIvor, B. D. Zohrab; Air Liaison Officer, Wing Commander K. W. Trigance, D.S.C.; Military Liaison Officer, Brigadier G. H. Clifton, D.S.O.: Navy Liaison Officer, Commander R. E. Harding, V.R.D.; Scientific Adviser. Dr. E. Marsden, C.M.G., C.B.E., M.C.; Public Relations Officer, A. T. Campbell: Finance Officer, D. F. Anderson; Commercial Secretary, J. B. Prendergast; Chief Migration Officer, M. C. Smith; Customs Adviser, W. G. Lowrie, Government Offices, 415 Strand, London.

United States of America.—Embassy, 19 Observatory Circle, Washington: Ambassador Extraordinary and Plenipotentiary, Sir Carl Berendsen, K.C.M.G., LL.M.; Counsellor and Consul-Genera., G. R. Laking; Commercial Counsellor, D. W. Woodward; First Secretary, F. H. Corner; Third Secretary, D. F. Dunlop: Air Attaché, Air Commodore J. L. Findlay, C.B.E., M.C. (Munitions Building, 20th and Constitution Avenues); Scientific Attaché, Dr. V. Armstrong; Assistant Scientific Attache, J. Raeside (Bradford Building, 1800K Street, N.W.). Office of the Permanent Delegation of New Zealand to the United Nations: First Secretary. C. Craw; Third Secretary and Vice-Consul, J. H. Weir, Suite 526, International Building, Rockefeller Centre, New York. R. M. Firth, Travel Commissioner in the U.S.A. and Canada; Vice-Consul, J. C. M. Bayliss, New Zealand Government Offices, 153 Kearny Street, San Francisco. D. W. Woodward, Trade Commissioner; Assistant Trade Commissioner, S. T. Murphy, Suite 210, Dupont Circle Building, 1346 Connecticut Ave., N.W., Washington.

OVERSEAS REPRESENTATIVES IN NEW ZEALAND

MARCH, 1951

Argentine Republic.—Consul, R. M. Zabala, Wellington.

Australia.—High Commissioner, His Excellency Mr. A. R. Cutler, V.C.; Official Secretary, Dr. J. S. Cumpston; Assistant Secretary, Miss C. M. Bell, Government Life Insurance Building, Customhouse Quay, Wellington. Defence Representative, Group Captain J. R. Fleming. Trade Commissioner, R. Hazzard; Assistant Trade Commissioner, K. W. Ward, Government Life Insurance Building, Customhouse Quay, Wellington.

Belgium.—Envoy Extraordinary and Minister Plenipotentiary, His Excellency Mr. Armand Nihotte, Dominion Farmers' Institute, Wellington. Hon. Consuls: Sir Joseph Ward, Bart., Auckland; A. H. Allen, Dunedin.

Brazil.—Hon. Consul, C. A. L. Treadwell, Wellington.

Canada.—High Commissioner, His Excellency, Mr. Alfred Rive; Commercial Secretary, Paul V. McLane; Second Secretary, T. H. W. Read; Assistant Commercial Secretary, C. M. Forsyth-Smith; Government Life Insurance Building, Customhouse Quay, Wellington.

Chile.—Consul-General (with jurisdiction in New Zealand), R. Dundas Smith, Sydney. Hon. Consul, H. O. Taylor, Auckland.

China.—Consul-General (with personal rank of Minister, also has jurisdiction in the Trust Territory of Western Samoa), Wang Feng; Vice-Consul, Liu Tung Wei; Deputy Consul, Wu Wen Hui, D.I.C. Building, Lambton Quay, Wellington.

Cuba.—In New Zealand, Consular Officers of the United States of America act on behalf of the Cuban Government.

Czechoslovakia.—Consul-General (with jurisdiction in New Zealand), (vacant); Acting-Consul-General, Josef Felix, Sydney; Hon. Consul, E. J. Hyams, Wellington.

Denmark.—Envoy Extraordinary and Minister Plenipotentiary (vacant), Canberra, A.C.T.; Chargé d'Affaires, a.i., A.C. Fensmark, Government Life Insurance Building, Customhouse Quay, Wellington. Hon. Consuls: Stronach Paterson, Wellington; A. C. Perry, Christchurch. Hon. Vice-Consuls: L. J. Stevens, Auckland; G. C. Petersen, Palmerston North.

Fiji.—New Zealand Agents for the Colony of Fiji, L. D. Nathan and Co., Ltd., Auckland.

Finland.—Chargé d'Affaires (with jurisdiction in New Zealand), P. I. Simelius, Sydney; Hon. Vice-Consul, Jerm Torvald Christiansen, Auckland.

France.—Envoy Extraordinary and Minister Plenipotentiary, His Excellency Mr. Emmanuel Lancial; First Secretary, Andre de Fonscolombe; Commercial Attache, Lueien Guillou; Attaché and Vice-Consul, C. Cansou, Government Life Insurance Building, Customhouse Quay, Wellington. Hon. Consular Agents: R. G. McElroy, Auckland; F. Farrell, Christchurch; A. N. Haggitt, Dunedin.

Greece.—Consul-General (with jurisdiction in New Zealand), E. Vrisakis, Sydney. Hon. Consul-General, T. E. Y. Seddon, Wellington. Hon. Deputy Consul-General, S. Garland, Wellington.

India.—Trade Commissioner, B. K. Sanyal, 49 Willis Street, Wellington.

Israel.—Envoy Extraordinary and Minister Plenipotentiary, His Excellency Mr. J. I. Linton; Consul, G. Doron, Sydney.

Italy.—Envoy Extraordinary and Minister Plenipotentiary, His Excellency Mr. Mario Carosi (nominated); Chargé d'Affaires, Count G. De Rege, Wellington.

Lebanon.—Hon. Consul, G. J. Marsh, Wellington.

Netherlands.—Envoy Extraordinary and Minister Plenipotentiary, His Excellency Mr. J. B. D. Pennink; First Secretary, Dr. W. Arriens; Agricultural Attache. H. De Bruin, D.I.C. Building, Lambton Quay, Wellington. Hon. Consul: C. S. O. Hughes, Auckland. Hon. Vice-Consuls: H. F. Van Eck, Auckland; G. N. Francis, Christchurch; G. R. Ritchie, Dunedin.

Nicaragua.—Consul-General (with jurisdiction in New Zealand), (vacant); Acting-Consul, R. H. Goddard, Sydney.

Norway.—Hon. Consul, J. Halligan, Wellington. Hon. Vice-Consuls: D. Millar, Auckland; J. Heaton Rhodes, Christchurch; J. H. Edmond, Dunedin.

Panama.—Hon. Consul, Hon. T. C. Webb, M.P., Auckland.

Poland.—Consul-General (with jurisdiction in New Zealand), Albert Morski, London.

The Philippines.—Envoy Extraordinary and Minister Plenipotentiary, His Excellency Mr. Roberto Regala; Consul, T. C. Baja; Vice-Consul, Alejandro D. Yango, Sydney.

Portugal.—Hon. Consuls, L. D. Nathan. Auckland; W. S. Wheeler, Wellington. Hon. Vice-Consuls, I. D. Reid, Wellington; J. Elvidge, Dunedin.

Sweden.—Chargé d'Affaires, L. R. G. Arfwedson, Wellington. Hon. Consul, C. M. Richwhite, Auckland. Hon. Vice-Consuls: I. Machin, Christchurch; R. S. Glen-dining, Dunedin.

Switzerland.—Consul, Henri Blanchard; Chancellor, Oscar Oesch, Wellington.

Tonga.—New Zealand Agents for the Government of Tonga, Messrs. Spedding Ltd., Auckland.

Turkey.—Consul-General (with jurisdiction in New Zealand and the Trust Territory of Western Samoa), Halil Ali Ramazanoglu, London. Consul, E. G. Cowell, Auckland.

Union of Soviet Socialist Republics.—Envoy Extraordinary and Minister Plenipotentiary, His Excellency Alexander M. Alexandrov. Commercial Attache, V. P. Ourenev. Attaché, N. I. Bourov, Legation of the Union of Soviet Socialist Republics, 57 Messines Road, Wellington.

United Kingdom of Great Britain and Northern Ireland.—High Commissioner, His Excellency Sir Roy Price, K.C.M.G.; Deputy High Commissioner, A. F. Morley; Economic Adviser, R. B. Willmot; Agricultural Adviser, D. S. Hendrie: Secretary, E. N. Larmour; Assistant Secretary, P. S. Miles; Public Relations Officer, K. C. F. Davies; Senior Trade Commissioner, R. B. Willmot; Trade Commissioner, A. Wooller, Government Life Insurance Building, Customhouse Quay. Wellington. Trade Commissioner, H. P. Stevens, Auckland. Service Liaison Staffs: Navy, Captain A. F. Campbell, O.B.E., R.N.; Army, Colonel G. N. Cree, C.B.E., D.S.O.; Air, Group Captain M. L. Heath, O.B.E., Government Life Insurance Building, Customhouse Quay, Wellington.

United Stales of America.—Ambassador Extraordinary and Plenipotentiary, His Excellency the Hon. Robert M. Scotten; Counsellor, Sidney H. Browne; Senior Military Attache, Colonel Hugh C. Parker; Naval Attache and Naval Attache for Air, Commander Adrian H. Perry (attached to American Embassy, Canberra); Assistant Air Attache, Major George A. Uhrich (attached to American Embassy, Canberra); Commercial Attache, Roy I. Kimmel (nominated); Public Affairs Officer, Earl A. Dennis; Agricultural Attache, Mead T. Foster; Assistant Public Affairs Officer, Donald E. Wilson; Second Secretary, Armistead M. Lee; Consul, Sidney H. Browne; Vice-Consuls, Arthur S. Abbott, David B. Wharton, James P. Osbourn, D.T.C. Building, Lambton Quay, Wellington. Consul, Elbert R. Williams, Auckland. Acting Consular Agent, Robert J. McMenamin, Christchurch; Consular Agent, Richard S. Reeves, Dunedin.

Uruguay.—Vice-Consul, F. D. Burnett, Wellington.

Yugoslavia.—Consul-General (with jurisdiction in New Zealand), V. Cvrlja; Consul, I. Kosovic, Sydney.

Chapter 49. STATISTICAL SUMMARY

STATISTICAL SUMMARY FOR NEW ZEALAND

POPULATION AND EXTERNAL MIGRATION (INCLUDING MAORIS)

Year.Population.Mean Population.Year Ended 31st March.
At 31st December.At 31st March.Year Ended 31st December.Year Ended 31st March.Overseas Passenger Arrivals.*Overseas Passenger Departures.*

* Excluding “through” passengers, and tourists on cruising liners.

1900808,132798,471802,246792,50118,43517,531
1901830,800815,862821,111808,81119,46315,714
1902851,072833,139840,936824,50125,58121,048
1903875,648857,993863,360845,56632,62519,994
1904900,682882,100888,165870,04730,48520,163
1905925,605908,116913,144895,10833,52422,582
1906956,457933,114943,325920,61533,25323,973
1907977,215961,598966,836949,65039,81228,877
19081,008,373985,320992,794973,45937,61829,853
19091,030,6571,016,0631,019,5151,000,69245,37431,226
19101,050,4101,035,2121,040,5341,025,63834,71532,854
19111,075,2501,056,1991,063,8871,045,70637,04934,375
19121,102,4711,081,3441,088,8611,069,82843,09737,205
19131,134,5061,111,5891,118,4881,096,46746,89234,935
19141,145,8381,139,6681,140,1721,125,62841,67231,517
19151,152,6381,150,3861,149,2381,145,02733,37727,254
19161,150,3391,150,2501,149,2251,150,31825,40722,808
19171,147,4481,150,9381,148,8931,149,22520,47020,047
19181,158,1491,154,5591,152,7981,152,74813,71812,214
19191,227,1811,178,4061,192,6651,166,48211,97811,473
19201,257,6111,236,9151,242,3961,207,66026,90023,990
19211,292,8921,267,4981,274,9171,252,20646,09031,908
19221,318,8841,301,2511,305,1261,283,54641,12830,396
19231,343,0211,325,3011,328,1931,311,38234,10828,581
19241,370,4031,347,8531,352,6181,334,02936,25430,487
19251,401,2301,379,4871,384,4281,359,99542,21129,913
19261,429,6691,409,8121,413,7431,392,07342,44930,714
19271,450,3561,438,1321,439,0041,420,83845,68234,018
19281,467,3701,453,8211,456,0751,443,55135,83737,072
19291,486,1341,471,1101,473,4191,460,36334,79934,088
19301,506,8091,489,2031,493,0191,478,02733,83931,454
19311,522,7621,511,7001,514,2151,498,41630,74125,632
19321,534,7351,525,5451,527,0621,517,94017,89121,063
19331,547,1241,538,0281,539,5901,530,11918,71321,308
19341,558,3731,550,1251,551,5321,542,65119,68722,022
19351,569,6891,560,9921,562,2331.9724,90128,051
19361,584,6171,573,9271,575,23116326,93628,050
19371,601,7581,587,2111,589,972175731,67032,023
19381,618,3131,604,4791,606,7631,594,27538,73836,352
19391,641,6391,624,7141,628,5121,611,36242,64837,685
19401,633,6451,640,9011,637,3051,633,44731,43225,404
19411,631,2761,636,2301,630,9481,635,71513,81413,100
19421,636,4031,634,3381,639,5721,630,4197,1026,893
19431,642,0411,634,0941,635,6351,640,1913,1332,592
19441,676,2931,643,9001,655,7941,637,5703,7473,640
19451,728,4411,679,9721,694,7141,664,5857,2076,189
19461,784,3341,758,0041,761,3991,710,99013,30910,966
19471,823,0741,793,2251,802,6371,772,78725,35822,320
19481,861,9231,834,2701,841,5311,812,60933,14427,388
19491,902,6551,873,3011,881,1181,851,29135,94631,765
19501,940,7581,914,1201,920,9661,891,30750,88043,000

VITAL STATISTICS (EXCLUDING MAORIS)

Year.NumbersRates per 1,000 of Mean PopulationDeaths under 1 Year per 1,000 Live Births.
Live Births.Marriages.Deaths.Deaths under 1 Year.Live Births.Marriages.Deaths.
190019,5465,8607,2001,46925.607.679.4375.16
190120,4916,0957,6341,46326.347.839.8171.40
190220,6556,3948,3751,71225.898.0110.5082.89
190321,8296,7488,5281,77026.618.2310.4081.08
190422,7666,9838,0871,61626.948.269.5770.98
190523,6827,2008,0611,59927.228.289.2767.52
190624,2527,5928,3391,50627.088.489.3162.10
190725,0948,19210,0662,22827.308.9110.9588.79
190825,9408,3399,0431,76127.458.829.5767.89
190926,5248,0948,9591,63427.298.339.2261.60
191025,9848,2369,6391,76026.178.309.7167.73
191126,3548,8259,5341,48425.978.709.3956.31
191227,5089,1499,2141,40926.488.818.8751.22
191327,9358,81310,1191,65326.148.259.4759.17
191428,3389,28010,1481,45625.998.519.3151.38
191527,85010,0289,9651,39425.339.129.0650.05
191028,5098,21310,5961,44625.947.479.6450.72
191728,2396,41710,5281,36025.695.849.5848.16
191825,8606,22716,3641,25223.445.6514.8448.41
191924,4839,51910,8081,10821.428.339.4645.26
192029,92112,17512,1091,51325.0910.2110.1550.57
192128,56710,63510,6821,36623.368.698.7347.82
192229,0069,55610,9771,21523.187.648.7741.89
192327,96710,07011,5111,22521.967.919.0443.80
192428,01410,25910,7671,12721.607.918.3040.23
192528,15310,41911,0261,12521.207.858.3039.96
192628,47310,68011,8191,13221.067.908.7439.76
192727,88110,47811,6131,08020.297.638.4538.74
192827,20010,53711,81198419.577.588.5036.18
192926,74710,96712,31491219.037.808.7634.10
193026,79711,07512,19992418.837.788.5734.48
193126,6229,81712,04785618.456.818.3532.15
193224,8849,89611,68377717.126.818.0431.22
193324,33410,51011,70177016.637.187.9931.64
193424,32211,25612,52778116.517.648.5032.11
193523,96512,18712,21777316.178.238.2532.26
193624,83713,80813,05676916.649.258.7530.96
193726,01414,36413,65881217.299.559.0831.21
193827,24915,32814,75497117.9310.099.7135.63
193928,83317,11514,15889818.7311.129.2031.14
194032,77117,44814,28299021.1911.289.2430.21
194135,10013,31315,1461,04522.818.659.8429.77
194233,57412,21916,38596421.737.9110.6028.71
194330,31111,57915,44795119.707.5310.0431.37
194433,59913,12515,3631,01221.598.439.8730.12
194537,00716,16016,0511,03623.2210.1410.0727.99
194641,87120,53516,0931,09325.2412.389.7026.10
194744,81618,52515,9041,12226.4210.929.3825.04
194844,19317,19215,81297025.529.939.1321.95
194943,98816,78816,0121,04624.889.509.0623.78
195044,30916,50416,7151,00824.569.159.2722.75

EDUCATION

Year.Number of Scholars* receivingUniversity Students (excluding affiliated Agricultural Colleges).
Primary Education atSecondary Education at
Public Schools.Registered Private Schools.Maori Village Schools.Secondary (including Endowed and Combined) Schools.District High Schools.Technical Schools.Registered Private Schools and Maori Secondary Schools.

* Excludes those receiving tuition from the Correspond-once Schools (primary and secondary).

† Excludes scholars at Chatham Islands School.

1899131,31515,3803,0652,723   766
1900130,72415,6023,1092,792   805
1901131,35115,3973,2732,899662  783
1902132,26215,6673,7423,0721,479  864
1903133,56815,6873,6933,7222,096  862
1904135,47516,4453,7544,0382,330  971
1905137,62316,7383,8634,0602,872  1,153
1906139,30217,2174,1744,2702,594  1,332
1907141,21618,1744,1834,1962,452  1,325
1908147,57516,2444,2174,3272,142699 1,634
1909152,60517,9894,1214,8561,891846 1,846
1910156,59419,0524,2805,1761,9161,253 1,862
1911161,90419,9674,5575,4651,7771,3418311,900
1912166,55320,3504,6945,8311,8151,5268832,228
1913172,51921,2514,6476,1541,8371,6645452,318
1914178,87122,2475,0726,4181,8961,8398502,257
1915183,63122,4775,1916,4882,1021,9559922,039
1916186,35023,6355,1327,0522,1152,1051,0041,985
1917188,75425,6855,1737,5902,1802,3471,2061,977
1918193,34526,3715,0648,3842,2832,7471,3662,226
1919194,58620,9775,1989,0682,1592,9261,4973,060
1920198,46022,1935,5089,1962,1572,7661,4393,822
1921205,95523,9245,82210,0302,1763,3491,6344,123
1922211,08124,8616,16110,7362,6064,2021,9983,958
1923212,46026,0106,18611,6192,8185,0542,1344,202
1924213,76826,3026,31012,0102,9005,3692,4734,236
1925215,06325,9336,38612,5143,1365,1322,5114,442
1926219,01726,7786,59113,6513,2995,7002,7944,653
1927221,15727,3586,62014,1903,5815,7032,9324,878
1928219,95026,5966,67115,0383,8806,0613,4304,802
1929219,16626,9776,97915,4984,0006,1143,6984,623
1930219,23526,4517,07016,1494,2406,9533,8254,801
1931218,68926,7267,50316,3444,9447,3973,7774,869
1932207,48926,4107,31315,9484,4867,1063,6164,912
1933200,81926,4287,34015,7154,5117,1493,5864,806
1934199,91326,6367,58715,9014,3657,1833,6514,721
1935197,52626,8697,87616,1624,5937,3233,9684,818
1936210,38627,7099,17516,5564,0707,4224,2414,967
1937207,87927,9319,64216,8114,3897,8334,6135,010
1938206,22028,3869,83217,7644,9058,1494,9025,219
1939205,26628,28010,40318,1765,4018,4815,1375,649
1940204,13728,45410,73017,7105,2538,0095,2075,198
1941204,20528,61410,91616,9865,0337,3715,3254,964
1942204,07228,46711,00916,8054,8527,9235,3574,292
1943204,24729,32811,27418,3245,1978,4366,0355,693
1944206,11229,71711,79320,8296,18710,2336,9276,986
1945209,78630,40112,19021,5666,87210,8657,8318,149
1946218,49031,50612,65421,9366,65611,7128,41910,993
1947227,00332,60413,17021,8476,66612,3288,91311,331
1948233,20733,36013,25422,0596,89512,1368,80911,420
1949241,92934,96013,28822,6177,32012,5049,18211,044

JUSTICE

Year.Summary Convictions in Magistrates' Courts.*Total Convictions or Sentences in superior Courts.Total Distinct Persons sentenced in Superior Courts.Prisoners in Gaol at End of Year (undergoing Sentence).
Number.Rate per 1,000 of Mean Population.NumberRate per 1,000 of Mean Population.NumberRate per 1,000 of Mean Population.Number.Rate per 1,000 of Population.

* Excluding Children's Court cases from year 1914 onwards.

† Not available.

189917,58622.274050.513830.485080.64
190019,24223.994270.533910.495270.65
190120,72425.243610.443540.436610.84
190222,45526.703490.423390.406020.75
190325,18629.173980.463800.446880.83
190425,67228.905270.595190.587010.78
190525,37127.784490.494330.477600.82
190627,67029.334450.474330.468330.87
190730,90131.964900.514810.507910.81
190830,85231.085430.555320.548150.81
190931,15130.555520.545440.538770.85
191032,43531.174950.484940.478430.80
191133,02931.054530.434270.408020.75
191236,19133.244800.444280.398210.75
191339,68535.484460.404090.378340.74
191440,67335.675220.464830.429810.86
191538,44633.455090.444410.389410.82
191634,32429.874480.394010.358340.73
191733,30228.996230.543770.339540.83
191828,42124.656320.553550.311,0050.87
191931,76626.638080.684610.398520.69
192034,74027.961,0110.814590.379960.79
192136,49228.581,4751.166160.481,0440.81
192233,99526.051,4171.096010.461,0520.83
192336,70129.141,6631.256250.471,1410.85
192438,98228.821,3881.035550.411,1970.87
192543,40731.351,4651.065110.371,2840.92
192644,88731.751,5621.105690.401,3880.97
192744,54030.951,7391.215690.401,4831.02
192843,41929.821,3680.944780.331,4350.98
192944,31130.071,3450.914730.321,3420.90
193045,54430.501,5241.025380.361,5231.01
193140,37426.661,6241.076000.401,6141.06
193240,59126.581,7101.126360.421,5220.99
193336,04323.411,5130.985310.341,4100.91
193435,75223.041,2130.784900.321,1990.77
193536,23023.191,1480.734720.301,1120.71
193639,51725.091,1780.754620.299150.58
193742,72626.871,3180.835070.327900.49
193849,65130.901,3220.824880.307770.48
193952,28832.111,4890.915710.358950.55
194046,11028.161,3940.855470.338630.53
194139,63624.301,4960.925420.339880.61
19421,4600.894570.281,0340.63
19431,3780.844940.301,0240.63
19441,4410.875600.349450.57
19451,8851.116190.379980.58
19461,7130.976550.379920.56
194740,99022.741,9481.087400.411,0880.60
194844,11923.962,3231.267170.399860.53
194950,00026.61,7180.916760.369400.49

AGRICULTURE

Season.Wheat for Threshing.Oats for Threshing.
Area.Yield.Yield per Acre.Area.Yield.Yield per Acre.

* Yield probably overstated for these four seasons, due to total being obtained by applying ascertained averages to areas returned by farmers as sown for threshing. Areas returned in these years as intended for threshing would appear, in many cases, to have been eventually utilized for other purposes.

† Provisional figures.

 Acres.Bushels.Bushels.Acres.Bushels.Bushels.
1899–1900269,7498,581,89831.81398,24316,325,83240.99
1900–01206,4656,527,15431.61449,53419,085,83742.45
1901–02163,4624,046,58924.76405,92415,045,23337.06
1902–03194,3557,457,91538.37483,65921,766,70845.00
1903–04230,3467,891,65434.26409,39015,107,23738.57
1904–05258,0159,123,67335.36342,18914,553,61142.53
1905–06222,1836,798,93430.60354,29112,707,98235.86
1906–07206,1855,605,25227.18351,92911,201,78931.83
1907–08193,0315,567,13928.84386,88515,021,86138.82
1908–09252,3918,772,79034.75406,90818,906,78846.46
1909–10311,0008,661,10028.00377,00013,804,00037.00
1910–11322,1678,290,22125.73302,82710,118,91733.41
1911–12215,5287,261,13833.69403,66819,662,668*48.71
1912–13189,8695,179,62627.28386,78613,583,924*35.12
1913–14166,7745,231,70031.37361,74114,740,946*40.75
1914–15229,6006,644,33628.94287,56111,436,301*39.77
1915–16329,2077,108,36021.59212,6887,653,20835.98
1916–17217,7435,051,22723.19177,5245,371,43630.29
1917–18280,9786,807,53624.23156,2024,942,75931.64
1918–19208,0306,567,62931.57172,6866,884,60939.87
1919–20139,6114,559,93432.66179,8006,967,86238.75
1920–21219,9856,872,26231.24147,5595,225,11535.41
1921–22352,91810,565,27529.94170,6556,752.66339.56
1922–23275,7758,395,02330.44143,0905,688,15739.75
1923–24173,8644,174,53724.0163,8421,964,51130.77
1924–25166,9645,447,75832.62147,3875,707,17438.72
1925–26151,6734,617,04130.44102,4854,115,60640.14
1926–27220,0837,952,44236.13117,3264,997,53542.58
1927–28260,9879,541,44436.5688,2233,852,68743.66
1928–29255,3128,832,86434.6073,1013,665,11341.93
1929–30235,9427,239,55630.6867,7223,002,28844.33
1930–31249,0147,579,15330.4487,1523,376,60938.74
1931–32268,7566,582,69824.4968,6902,818,15241.03
1932–33302,53111,054,97236.54116,2065,132,13344.16
1933–34286,2719,036,01731.5678,3433,242,50041.39
1934–35225,3895,933,24526.3252,5161,890,14535.99
1935–36248,6398,859,22335.6377,5023,302,64242.61
1936–37221,7907,168,96332.3274,7723,525,43047.15
1937–38185,9496,042,98132.5057,9172,640,91545.60
1938–39189,2815,564,13629.4054,4222,604,81747.86
1939–40257,5328,010,08931.1049,7512,081,10641.83
1940–41243,1978,305,86534.1571,7583,114,94643.41
1941–42253,0028,671,24433.6170,7963,444,81248.66
1942–43286,9989,819,34234.2156,2912,808,77449.90
1943–44233,7867,208,48530.8339,6521,834,31046.26
1944–45183,8866,992,20438.0277,6844,209,14354.18
1945–46161,0495,439,04133.7757,2782,796,87748.83
1946–47141,4075,368,12037.9655,2972,686,21148.58
1947–48123,7514,539,01736.6863,1592,853,51745.18
1948–49146,7075,958,02640.6178,3003,718,59747.49
1949–50125,1264,897,60239.1452,6452,620,25249.77

LIVE-STOCK

Year.Horses.Total Cattle.Dairy Cows.Sheep.Pigs.

* Not available.

† Figures from 1917 onwards include dairy cows in milk only.

‡ Provisional figures.

1900261,9311,222,139355,25619,355,195249,751
1901266,2451,256,680372,41620,233,099250,975
1902279,6721,361,784381,49220,342,727224,024
1903286,9551,460,663428,77318,954,553193,740
1904298,7141,593,547468,12518,280,806226,591
1905314,3221,736,850498,24119,130,875255,320
1906326,5371,810,936517,72020,108,471249,727
1907342,6081,851,750543,92720,983,772242,273
1908352,8321,816,299541,36322,449,053241,128
1909363,2591,773,326536,62923,480,707245,092
1910***24,269,620*
1911404,2842,020,171633,73323,996,126348,754
1912***23,750,153*
1913***24,191,810*
1914***24,798,763*
1915***24,901,421*
1916371,3312,417,491750,32324,788,150297,501
1917373,6002,575,230684,03225,270,386283,770
1918378,0502,869,465710,56126,538,302258,694
1919363,1883,035,478732,25325,828,554235,347
1920346,4073,101,945782,75723,919,970266,829
1921337,2593,139,223890,22023,285,031349,892
1922332,1053,323,2231,015,32522,222,259384,333
1923330,8183,480,6941,124,67123,081,439400,889
1924330,4303,563,4971,184,97723,775,776414,271
1925326,8303,503,7441,195,56724,547,955440,115
1926314,8673,452,4861,181,44124,904,993472,534
1927303,7133,257,7291,181,54525,649,016520,143
1928307,1603,273,7691,242,72927,133,810586,898
1929298,9863,445,7901,291,20429,051,382556,732
1930297,1953,770,2231,389,54130,841,287487,793
1931282,7294,043,5601,478,94729,792,516468,533
1932267,9804,035,4181,562,07928,691,788505,755
1933263,8834,155,0581,703,32827,755,966583,921
1934260,8924,264,1631,795,81728,649,038652,732
1935259,9724,256,5341,807,37729,076,754755,094
1936263,1564,217,1131,802,77330,113,704800,802
1937264,7854,352,1361,784,82031,305,818794,758
1938265,1534,469,1171,743,19032,378,774748,805
1939261,7894,527,9831,723,89331,897,091675,802
1940258,5674,496,0671,719,28931,062,875706,340
1941253,0524,538,9081,759,01831,751,660761,519
1942248,5974,604,7491,756,654*681,016
1943236,4554,447,5481,714,959*604,574
1944225,8234,439,2581,647,92033,200,298573,362
1945217,6894,590,9261,678,94333,974,612593,828
1946216,3354,666,7821,661,944*549,391
1947206,5754,633,8001,657,69032,681,799545,874
1948203,8854,716,2871,713,53232,483,138548,177
1949196,0554,722,8361,746,75332,844,918544,841
1950194,8464,948,8091,845,51033,856,558552,372

NOTE.—With the exception of sheep, figures from 1931 onwards exclude stock within boroughs.

TRADE

Year.Excluding Specie.*Specie.
Exports.Imports.Exports.Imports.
Total.Per Head.Total.Per Head.

* Figures are in terms of New Zealand currency.

† Specie exports and imports represent face value.

‡ Increases mainly due to imports of defence materials and equipment.

§ Provisional.

¶ Not yet available.

 ££s.d.££s.d.££
190013,223,258169810,207,3261214622,903438,770
190112,869,8101513611,353,4161316611,614464,499
190213,635,459164410,958,03813079,518368,685
190314,971,9261761012,075,9591319938,452712,716
190414,738,75016111112,900,030141069,598391,664
190515,642,069172712,481,1781313413,878347,679
190617,992,480191614,303,1701533102,657908,233
190720,061,6412015016,539,70717227,316763,154
190816,075,2051631017,247,1621775242,289224,122
190919,636,151195214,817,4621410825,845857,257
191022,152,4732151016,748,2231611127,736303,360
191118,980,18517161018,782,6081713148,305763,271
191221,511,6261915120,576,579181711258,955399,995
191322,810,3632071121,653,6321972176,359634,670
191426,253,925230621,144,2271810117,522711,869
191531,430,822277020,658,72017196318,0901,070,114
191633,281,0572819225,045,4032115105,8801,293,880
191731,517,072278820,742,130181170,475177,135
191828,480,5782414124,131,7922018835,610102,215
191953,907,925454030,309,167258362,150362,531
192046,405,366377061,553,85349101136,58041,975
192144,828,460352342,744,1223398367198,321
192242,725,9493214934,826,07426138300186,487
192345,939,7933411943,363,9833213027,37214,510
192452,509,2233816548,527,60335176103,488 
192555,243,0473918152,425,7573717419,22530,650
192645,268,924320649,811,76335486,65177,800
192748,496,3543314044,782,6663125 280
192855,570,381383344,844,10230160618,10042,164
192954,930,063375748,734,4723316649,00063,505
193044,940,517302044,339,65429140175363,087
193134,950,698231826,498,15117100202,33056,155
193235,609,919236524,646,006162101,355,86155,310
193341,005,9192612825,581,36616124296,032424,704
193447,342,8473010331,339,55220402,283,9001,242,000
193546,538,3812915936,317,26723411521,000381,821
193656,751,940360744,258,8862811145,24536,601
193766,713,3794119256,160,69535653,500318,510
193858,376,283366855,422,1893491031,80531,274
193958,049,31635121149,387,18330662,79525,364
194073,741,133450948,997,66929186 36,646
194167,479,413417649,167,0103021110,015205,409
194281,284,6374911653,856,01232161125,375147,010
194371,862,5984318995,242,33058471,240461,800
194477,786,9464619786,397,2125237400159,640
1945§81,536,431482355,072,928329114,400208,148
1946§101,307,1655710571,634,114401354,532418,970
1947§129,406,26471159128,724,841718210,375184,990
1948§147,822,8628055128,200,6926912455,169624,755
1949§147,366,36978610119,713,13863129570,2201,051,114
1950§183,801,91695138  514,455
Year.Exports of New Zealand Produce.
Wool.Frozen Meat.*Tallow.
Quantity.Value.Quantity.Value.Quantity.Value.

* Includes exports of chilled beef.

† Provisional.

 lb.£Cwt.£Cwt.£
1900140,706,4864,749,1961,844,8312,123,881367,780368,473
1901146,820,0793,699,1031,857,5472,253,262335,360351,710
1902160,419,0233,354,5632,138,5572,718,763424,060550,131
1903155,128,3814,041,2742,378,6503,197,043396,940517,871
1904144,647,3764,673,8261,912,9792,793,599322,480357,974
1905139,912,7375,381,3331,690,6842,694,432318,942347,888
1906154,384,5686,765,6552,025,5072,877,031378,400455,026
1907171,635,5957,657,2782,354,8083,420,664414,880560,965
1908162,518,4815,332,7812,120,3033,188,515372,520481,335
1909189,683,7036,305,8882,572,6043,601,093484,160648,452
1910204,368,9578,308,4102,654,1963,850,777520,180756,841
1911169,424,8116,491,7072,250,5653,503,400413,120607,257
1912188,361,7907,105,4832,573,2383,909,569470,900684,739
1913186,533,0368,057,6202,578,6934,449,933454,860663,088
1914220,472,8989,318,1143,229,9695,863,062490,300694,348
1915196,570,11410,387,8753,591,2607,794,395535,260780,828
1916185,506,85912,386,0743,326,0457,271,318449,440785,339
1917178,274,48612,175,3662,446,9455,982,404251,980553,016
1918108,724,5757,527,2662,036,9044,957,576328,420847,618
1919274,246,61319,559,5373,822,6839,628,292937,4802,680,006
1920162,327,17611,863,8274,629,28211,673,696540,8201,748,773
1921158,714,8285,221,4794,322,75411,164,345554,240867,298
1922321,525,56211,882,4633,518,0048,387,461529,900750,574
1923217,566,09110,904,6583,043,9109,012,627504,860785,668
1924206,189,91115,267,5443,213,5749,499,877479,760799,230
1925205,726,85617,739,7363,414,20511,174,567500,760895,061
1926213,154,39911,830,1903,034,3568,656,213422,560741,045
1927220,500,72012,961,7443,364,9659,104,621477,500714,441
1928226,804,54416,679,0983,793,82810,309,662514,960804,271
1929234,955,97815,359,2063,336,2009,883,277416,640693,614
1930197,239,6147,664,3624,036,63910,937,382492,560683,571
1931211,718,8685,515,3164,138,8068,892,555465,280413,080
1932238,179,0625,742,8214,645,4808,436,306507,540462,081
1933286,307,4417,422,2665,203,1139,845,627560,400516,063
1934255,796,78312,516,4254,969,44711,886,955553,240480,354
1935222,661,4037,097,1335,206,51412,768,968505,540630,638
1936314,409,40213,293,7065,119,80413,239,414521,900628,310
1937282,339,14819,070,2405,410,91214,689,616518,800647,969
1938271,283,23312,185,4835,373,30815,092,059592,260524,775
1939277,391,71311,665,9095,906,25115,390,801582,740456,527
1940300,288,68716,875,4636,976,625,19,681,343682,760707,721
1941215,743,29612,613,3715,284,84816,595,290786,560818,370
1942307,547,29618,336,5075,741,38917,777,4361,035,5801,143,879
1943206,822,34813,483,5444,412,65713,801,632879,1001,071,232
1944188,599,35912,711,4074,156,05412,482,008532,480608,263
1945165,990,88712,661,2445,651,06117,598,983615,220844,318
1946365,370,40426,593,1986,746,16723,239,585494,2601,063,156
1947375,093,06131,933,0866,955,60329,353,331514,5002,366,742
1948420,966,40944,496,1306,869,94428,623,955401,2602,154,201
1949429,657,25246,553,1516,882,02327,229,684508,6332,599,493
1950393,973,50074,653,0076,761,68228,495,568591,9113,217,157
Year.Exports of New Zealand Produce.
Butter.Cheese.Gold.
Quantity.Value.Quantity.Value.Quantity.Value.

* Provisional.

 Cwt.£Cwt.£Oz.£
1900172,583740,620102,849229,111373,6141,439,602
1901201,591882,406104,294238,685455,5581,753,784
1902253,9981,205,80274,746163,539507,8521,951,426
1903285,1061,318,06774,780194,998533,3142,037,832
1904314,3601,380,46084,526185,486520,3231,987,501
1905305,7221,408,55788,562205,171520,4852,093,936
1906320,2251,560,235131,206341,002563,8432,270,904
1907328,4411,615,345236,833662,355508,2102,027,490
1908229,9711,171,182280,798783,419506,3812,004,799
1909321,1081,639,380400,6071,105,390506,3712,006,900
1910356,5351,811,975451,9151,195,373478,2861,896,318
1911302,3871,576,917439,1741,192,057454,8371,815,251
1912378,1172,088,809577,0701,680,393343,1631,345,131
1913372,2582,061,651611,6631,770,297376,1611,459,499
1914434,0672,338,576863,7762,564,125227,954895,367
1915420,1442,700,625817,2582,730,211422,8251,694,553
1916358,6322,632,293949,4163,514,310292,6201,199,212
1917254,3972,031,551885,7433,949,251218,624903,888
1918431,0233,402,223883,4304,087,27811,98742,391
1919345,8183,080,1281,572,3117,790,990320,2071,334,405
1920312,0093,022,3351,222,0506,160,840212,973883,748
1921898,47811,169,5301,368,7868,199,183149,595612,168
19221,120,2009,041,5541,161,1964,686,850131,848540,182
19231,250,14010,689,2001,441,4606,870,397169,512698,583
19241,269,45511,641,6681,594,4867,023,297133,631551,788
19251,245,32410,240,1321,376,7545,800,808114,696472,364
19261,168,0408,695,1881,461,5485,939,359125,777516,207
19271,455,53910,915,2331,492,7925,582,596130,171534,652
19281,449,57011,302,6671,567,2726,693,951118,722489,584
19291,653,80713,228,0271,779,0937,017,463116,848480,212
19301,884,23711,854,0561,812,9816,438,438133,749550,678
19311,988,56610,649,5271,636,3474,461,293140,970581,032
19322,185,54510,639,0531,790,4314,951,268200,6481,092,288
19332,635,24711,648,6991,982,9424,766,351177,2411,281,612
19342,614,51910,042,7761,984,4964,694,459162,4901,320,690
19352,789,29813,616,7401,727,5524,376,512171,2831,441,790
19362,796,14515,317,5761,658,2065,122,438168,0731,398,656
19372,976,08516,986,4771,647,1605,371,878172,3171,435,216
19382,614,54916,520,2261,610,5235,935,061152,4871,296,839
19392,443,29716,111,2071,677,2575,869,890176,3701,628,526
19402,622,70018,228,0262,033,5068,233,486188,4591,948,280
19412,263,13515,777,8642,366,2359,833,861176,2421,830,365
19422,344,62216,477,9432,687,62111,860,471167,2461,726,540
19431,985,18714,392,7592,009,9479,125,958149,5631,542,793
19442,306,80418,553,4841,554,0597,443,632138,0481,423,556
1945*2,069,53219,277,7041,748,5149,519,363121,0841,262,884
1946*2,035,87519,841,4551,514,9178,448,321111,5311,184,783
1947*2,552,46728,835,8981,740,87911,621,08898,5571,035,406
1948*2,712,38733,758,1881,512,46811,197,02458,400609,259
1949*2,952,03935,449,9181,878,75612,674,35963,854607,696
1950*2,749,54034,855,8231,997,80114,312,192110,4861,311,095
Year.Exports of New Zealand Produce.
Rabbit-skins.Grass and Clover Seeds.Milk (Dried and Condensed).
Quantity.Value.Quantity.Value.Quantity.Value.

* Provisional.

19005,690,89341,68962,79193,006560,52810,526
19017,112,00857,04652,56269,937945,77217,805
19026,139,79452,56643,99884,861614,70812,305
19036,101,89940,72761,665109,049636,94212,588
19046,103,93040,84346,29395,835263,2435,230
19058,831,10766,98344,64880,598755,03916,597
19065,454,73850,68650,63889,022484,49310,420
19075,513,90053,75736,73887,30081,4111,976
19087,148,62566,52915,39634,88180,0711,619
19097,533,13789,53371,54194,41091,6803,014
19109,103,954132,77354,946113,568235,5905,326
19117,455,28876,71218,43840,317281,5276,898
19128,937,035118,23436,34469,69432,392671
19136,267,60886,75635,58960,49217,184359
19144,512,17148,38839,57273,55147,983791
19156,090,87250,00413,98042,3141,175,10620,388
19165,896,41076,4059,84134,266984,03523,780
19174,944,607105,32116,48448,6354,103,849153,538
19187,854,152299,76515,99542,2157,061,830341,797
191914,340,007775,11849,906249,88610,494,679579,266
192014,363,216830,02423,821147,36913,950,026795,612
192113,922,446448,18037,319156,11418,596,3921,109,331
192215,487,225567,86470,120285,45111,421,332529,650
192314,233,417472,49147,031175,75416,220,997513,495
192420,444,390740,97536,331149,08313,481,253505,098
192519,708,586843,41645,368151,16413,742,627425,738
192617,135,599829,16557,726200,38011,324,780345,072
192712,928,669682,65890,362255,79812,420,494346,271
192812,104,072582,14850,238162,45217,218,653392,452
19299,122,917361,94957,869182,53713,736,098352,587
19307,206,992142,24936,560166,22115,200,835351,339
19316,174,092108,84140,953155,41012,845,394246,483
19326,660,14070,01634,337109,63216,033,175269,121
193310,378,388224,19980,308152,45817,640,072315,964
193413,035,015257,58548,751166,51121,562,450407,708
193513,536,745395,09071,649215,73820,783,080370,890
193616,928,931763,96179,982249,86123,742,354405,801
193712,050,438557,13258,107205,98824,713,648364,676
193810,268,012247,39045,484233,37220,536,678307,603
193911,190,294262,90445,829284,51424,545,704377,506
194010,412,156401,71645,742369,03523,440,047419,176
194113,403,6731,006,23888,191563,67329,641,506699,533
194211,818,761745,74282,499592,68127,585,510683,578
194312,290,284903,24190,720665,11323,190,806598,228
194413,886,065974,909158,4751,453,09018,429,814534,716
1945*17,670,0781,204,791166,5131,799,31033,811,9481,019,710
1946*15,755,9391,451,301150,5981,942,07238,008,4151,198,282
1947*16,654,4961,120,219147,0111,663,36544,753,7101,651,396
1948*13,471,298754,651174,8431,700,64459,448,6652,209,805
1949*10,269,104318,589161,9921,523,42677,033,4262,866,116
1950*9,918,514346,865164,1152,083,63091,015,2513,321,883
Year.Exports of New Zealand Produce.
Cattle-hides and Calf-skins.Sheep-skins.
Cattle-hides.Calf-skins.Average Value.With Wool.Without Wool.Aggregate Value.

* Figures not available.

† Provisional.

1900****4,401,885279,391
1901***238,8334,362,698264,579
1902***441,0785,703,602375,876
1903***683,2516,459,280468,969
1904***533,4135,504,047401,726
1905***657,6104,273,581500,744
1906***716,0115,835,217680,632
1907***830,1306,186,614796,127
1908***718,4285,603,688518,696
1909***1,096,0806,419,334684,271
1910***983,4926,827,094741,259
1911***901,0886,718,907633,523
1912***920,3017,000,671707,203
1913***933,1527,238,123800,354
1914214,483182,128408,307918,5627,607,049856,832
1915269,656234,164571,861499,0648,594,786826,507
1916296,551206,024672,182397,8957,937,675917,633
1917176,74750,902453,9372,6866,525,3671,300,188
1918206,919106,238530,431 8,741,5381,813,589
1919318,641106,807963,554 8,501,7561,694,867
1920284,666251,2571,125,811 9,221,5523,060,212
1921329,032440,712569,16385,5128,350,886972,116
1922239,930464,563504,334645,0029,499,851980,189
1923339,503609,155746,477706,0137,540,7871,121,695
1924469,588706,847832,009689,4018,136,2651,513,477
1925495,535702,029940,140471,1278,224,1851,989,289
1926449,103751,448755,537706,6998,525,1941,544,273
1927397,792774,141922,825972,5308,945,9231,550,812
1928431,609769,5381,228,1051,364,7828,817,2671,924,097
1929290,804667,915677,9251,072,0178,559,7391,812,093
1930290,964656,802510,6831,542,0259,477,5611,516,738
1931308,843652,747337,2961,665,81110,419,882805,838
1932304,053845,707306,0531,641,20211,999,210694,217
1933401,327890,687544,3853,380,11411,813,6851,043,208
1934476,2351,109,999627,3712,949,9719,243,7261,250,091
1935521,7451,266,258685,8732,405,25111,765,2931,275,464
1936430,9421,177,847761,5111,780,33210,847,2491,703,130
1937506,4601,162,9521,031,0761,743,98210,759,0592,246,015
1938516,4521,246,993742,8061,824,02612,353,5661,369,324
1939528,1571,103,18278,1231,932,67213,223,8641,460,072
1940519,5101,032,165860,0621,798,80111,340,1281,931,957
1941384,8851,015,5931,003,051769,58017,744,0522,007,376
1942356,767931,0581,064,6251,013,28514,590,4482,806,723
1943417,608943,5221,129,174776,57914,000,0462,264,080
1944304,848888,250899,560815,27014,425,4202,386,648
1945329,089795,1841,040,448904,95214,323,7852,402,250
1946392,322659,6451,479,882784,94114,694,2922,490,673
1947472,972757,1862,917,0941,415,78915,624,3496,014,194
1948475,917665,5222,886,596 10,288,7285,657,920
1949327,7661,121,6572,339,561795,49216,620,0813,855,629
1950363,319870,4022,601,175670,45916,790,7036,155,859

FACTORY PRODUCTION

Year.Number of Establishments.Persons engaged.Salaries and Wages paid.Cost of Material.Other Expenses.Value of Output.Added Value.

* Productive employees.

‡ Not available.

‡ Estimated on basis of sample survey.

   £££££
1910–113,48345,924*4,786,698*18,782,92929,317,02310,534,094
1915–163,75548,744*5,791,704*30,197,78443,034,03312,836,249
1918–193,47858,1378,501,31038,803,19155,310,86416,507,673
1919–203,66164,10710,512,10045,107,56866,169,25321,061,685
1920–214,02269,68113,172,99652,933,49477,828,01324,894,519
1921–224,16967,48412,996,07739,274,11265,672,25926,398,147
1922–234,32570,70513,075,49444,340,46772,343,03228,002,565
1923–244,45174,51013,851,89046,253,40375,433,60629,180,203
1924–254,53877,18314,945,97551,337,11582,479,37831,142,263
1925–264,79478,70816,153,82251,668,1008,395,92182,358,85130,690,751
1926–275,07878,61316,255,17749,344,4428,646,77980,334,60190,990,159
1927–285,15678,62016,053,21054,558,1678,792,72185,059,79930,501,632
1928–295,12680,61816,291,21259,136,5529,330,05190,478,23231,341,680
1929–305,16882,86116,846,28658,484,2459,954,86190,757,98132,273,736
1930–315,19477,91415,617,05248,458,3569,388,62677,745,24929,286,893
1931–324,96968,69712,642,93542,472,6008,263,06566,588,74424,116,144
1932–334,99368,92112,048,14842,726,0438,097,04266,109,45523,383,412
1933–345,02872,65112,106,50047,067,5648,108,89071,770,87224,703,308
1934–355,27079,35813,244,37352,277,2858,809,91279,324,47327,047,188
1935–365,53686,58814,844,36760,172,8489,374,36990,014,74829,841,900
1936–375,72896,40118,333,07770,938,16510,481,253105,941,72235,003,557
1937–385,924102,34420,981,58775,371,55810,540,208113,691,55638,319,998
1938–396,146102,53522,270,01075,634,90310,001,804114,447,42638,812,523
1939–406,342108,72224,460,54985,243,38311,043,557129,061,82643,818,443
1940–416,395113,99926,946,79998,547,80411,978,820147,153,55948,605,755
1941–426,367117,21429,504,299102,260,86012,812,901155,566,19553,305,335
1942–436,127114,59032,256,071107,447,79913,331,973165,936,28458,488,485
1943–446,202117,86434,433,075112,883,93214,516,235175,686,68962,802,757
1944–456,485122,41437,379,062122,695,10615,481,351189,800,76467,105,658
1945–466,991128,20841,499,113123,508,43816,278,562195,258,61471,750,176
1946–477,642134,43545,336,217138,533,72218,247,043218,106,18279,572,460
1947–487,966140,26752,132,689181,773,21821,240,976272,155,33390,382,115
1948–498,000142,50056,000,000203,000,00023,350,000301,000,00098,000,000
1949–508,027144,30961,316,840221,228,64726,334,762331,703,908110,475,261

INDEBTEDNESS OF GENERAL GOVERNMENT.—AMOUNT OF DEBENTURES AND STOCK IN CIRCULATION

(Nominal Amounts)

As at 31st March,Domiciled inTotal.Per Head of Population.
London.Australia.New Zealand.
 £££££s.d.
190043,299,679181,6004,393,17347,874,45259192
190144,497,279181,6004,912,36649,591,24560158
190246,430,126181,6006,354,72152,966,44763116
190347,892,366568,1007,438,55355,899,0196530
190448,048,842793,9008,679,47357,522,2156543
190549,379,6191,209,5509,322,83159,912,00065197
190650,910,9922,586,4508,693,59862,191,04066130
190751,587,7933,087,8509,503,39764,179,040661410
190851,158,6703,554,70011,740,52766,453,89767811
190954,631,0983,869,80012,437,63670,938,53469164
191057,733,6584,113,98513,043,00274,890,64572610
191162,221,8184,213,98514,642,31981,078,12276153
191264,004,8744,213,98516,135,05484,353,9137803
191368,929,4644,213,98516,917,31490,060,7638105
191478,624,3094,286,80016,819,31899,730,42787102
191576,410,0013,979,00019,670,909100,059,91086197
191681,464,7483,520,65024,651,999109,637,5979564
191783,877,8183,385,65042,572,637129,836,105112162
191888,707,8183,385,65058,746,587150,840,0551301211
191995,708,3283,385,65076,982,282176,076,26014985
192095,708,3293,385,650102,076,776201,170,755162129
192199,691,5151,655,450104,977,354206,324,319162157
1922105,919,1592,287,440110,847,786219,054,385168610
1923110,668,2682,159,490106,125,566218,953,32416542
1924114,876,8932,106,600104,632,868221,616,36116485
1925120,818,4872,952,200104,043,960227,814,647165211
1926128,047,6593,643,100107,164,719238,855,47816986
1927132,512,8054,042,450109,295,634245,850,889170190
1928139,756,9734,168,850107,470,429251,396,252172185
1929149,346,2444,168,350110,677,389264,191,983179119
1930146,580,5024,276,750116,526,091267,383,343179110
1931154,546,9414,175,350117,311,067276,033,358182120
1932159,641,8553,914,550118,386,395281,942,800184163
1933161,400,7032,868,710118,353,545282,622,958183152
1934160,908,1052,908,150138,975,741302,791,99619568
1935160,972,2302,183,550117,425,437280,581,2171791411
1936158,711,9301,592,650122,256,518282,561,098179106
1937156,737,016891,900130,041,284287,670,200181410
1938156,857,016882,600132,461,726290,201,342180175
1939156,853,016879,600146,237,656303,970,272187110
1940157,863,270879,600164,164,666322,907,536196159
1941158,371,589879,600190,176,386349,427,575213112
1942153,755,563862,300230,779,870385,397,733235163
1943158,274,298862,300304,688,774463,825,3722831610
1944159,107,823862,300366,746,933526,717,06132235
1945159,282,383861,300403,274,133563,417,81633576
1946120,720,283861,300472,749,936594,331,51933815
1947120,720,283861,300482,990,107604,571,690337210
1948109,378,675779,000494,111,972604,269,64732988
1949106,153,209628,226534,395,305641,176,74034255
1950104,330,631628,226565,112,485670,071,34235014

NOTE.—Figures for 1932 and later years include £26,191,109 in respect of which interest payments have been suspended by agreement with the Imperial Government since 1931.

REVENUE AND EXPENDITURE OF GENERAL GOVERNMENT

Year Ended 31st March,Consolidated Fund.
Receipts.Payments.Balances.
From Taxation.From Other Sources.Totals.Totals.Deficit.Surplus.

* Includes taxation formerly credited to, and certain expenditure previously charged to, the War Expenses Account.

† Excludes £20,000,000 loan portions of payment to Reserve Bank for liability due to alteration in the exchange rate as from 20th August, 1948.

 ££££££
19002,891,1262,808,4925,699,6185,140,128 559,490
19013,042,8902,864,0265,906,9165,479,703 427,213
19023,113,0793,039,7606,152,8395,895,914 256,925
19033,277,9643,169,4716,447,4356,214,019 233,416
19043,649,6013,480,5167,130,1176,434,281 695,836
19053,754,3793,592,8187,347,1976,635,902 711,295
19063,841,5963,808,5027,650,0987,122,340 527,758
19074,264,5554,214,4028,478,9577,774,926 704,031
19084,645,7544,418,2359,063,9898,213,965 850,024
19094,377,7614,624,2249,001,9858,785,513 216,472
19104,180,5165,058,4019,238,9178,990,922 247,995
19114,837,3225,459,95110,297,2739,343,106 954,167
19125,296,5905,764,57111,061,16110,340,368 720,793
19135,606,8296,127,44211,734,27111,082,038 652,233
19145,918,0346,311,62712,229,66111,825,864 403,797
19155,881,9056,570,04012,451,94512,379,803 72,142
19167,266,9667,243,17114,510,13712,493,107 2,017,030
191710,549,6547,817,89318,367,54714,058,770 4,308,777
191812,340,8537,865,36920,206,22215,120,288 5,085,934
191913,801,6438,550,72922,352,37218,673,599 3,678,773
192016,256,5279,824,81326,081,34023,781,924 2,299,416
192122,184,41512,076,54734,260,96228,128,730 6,132,232
192216,370,51611,756,49128,127,00728,466,838339,831 
192315,594,28811,985,15527,579,44326,263,760 1,315,683
192416,416,87111,543,50027,960,37126,148,005 1,812,366
192516,554,66412,088,33628,643,00027,399,200 1,243,800
192616,978,4967,747,26624,725,76223,570,083 1,155,679
192716,899,5568,043,55124,943,10724,355,965 587,142
192816,848,7548,275,22625,123,98024,944,905 179,075
192917,835,1225,764,55423,599,67624,176,928577,252 
193019,474,0915,875,77025,349,86125,200,882 148,979
193118,597,4564,471,47523,068,93124,708,0421,639,111 
193216,188,1716,531,56222,719,73324,860,5522,140,819 
193315,604,0416,964,48022,568,52122,528,379 40,142
193417,059,8296,432,92023,492,74924,202,027709,278 
193520,177,6076,948,48726,126,09424,499,595 1,626,499
193621,556,4154,615,95326,172,36825,890,568 281,800
193726,940,8454,206,34231,147,18730,675,158 472,029
193831,664,43013,145,17644,809,60643,998,784 810,822
193932,305,77211,392,86343,698,63542,889,267 809,368
194032,810,59914,108,89246,919,49146,600,152 319,339
194134,873,73216,106,84550,980,57749,254,153 1,726,424
194235,161,94619,390,75554,552,70152,880,239 1,672,462
194336,195,86518,880,09555,075,96050,921,382 4,154,578
194442,017,61915,543,79057,561,40955,328,829 2,232,580
194545,689,39614,239,47659,928,87258,714,153 1,214,719
194648,370,71815,542,93163,913,64962,659,499 1,254,150
1947*90,715,39317,579,080108,294,473103,683,455 4,611,018
1948*96,099,15321,016,962117,116,115115,330,403 1,785,712
1949*101,061,73920,462,176121,523,915118,893,154 2,630,761
1950*103,853,46521,143,169124,996,634120,688,892 4,307,742

NOTE.—Reference to Section 25A will indicate that the figures shown in the above table are by no means on a comparable basis over the period.

The figures from 1937–38 onwards have been adjusted to bring them into line with present practice.

LOCAL AUTHORITIES*

Year Ended 31st March,Receipts.Payments.Total Gross Indebtedness.
Revenue.Other Receipts.Totals.
From Rates.From Other Sources.

* Exclusive of Hospital Boards.

† Debt shown at its nominal amount, that portion domiciled overseas not being converted to its New Zealand currency equivalent. In terms of New Zealand currency gross debt at 31st March, 1949, amounted to £(N.Z.)56,464,606.

 ££££££
1899685,769820,727385,3681,891,8641,778,5747,995,400
1900714,151848,032372,0281,934,2111,960,0738,149,272
1901734,023919,831825,0392,478,8932,250,5728,785,303
1902800,4711,019,024775,4322,594,9272,528,0929,245,364
1903846,7161,053,582966,0872,866,3852,867,5069,886,676
1904950,1501,206,0691,142,5953,298,8143,230,71210,756,062
19051,019,4311,255,2221,350,6313,625,2843,497,32112,056,736
19061,151,2191,392,1481,326,5973,869,9643,601,50612,873,165
19071,233,0491,579,3911,227,4734,039,9133,897,51513,903,153
19081,356,2571,750,6651,410,9944,517,9164,491,11314,931,351
19091,390,6981,934,1221,440,7464,765,5664,800,71115,920,757
19101,526,3171,934,0342,362,1715,822,5224,898,48217,809,917
19111,592,6012,171,7251,776,9585,541,2845,360,26119,104,571
19121,677,8772,298,9342,425,2586,402,0696,074,37220,763,486
19131,799,2992,531,6862,383,1236,714,1086,537,76922,183,427
19142,005,6382,719,1122,411,5757,136,3256,796,31423,773,429
19152,140,0862,861,2972,595,7067,597,0896,806,56724,538,721
19162,355,1552,967,6452,469,2757,792,0756,920,73626,045,312
19172,534,5393,243,9421,411,4227,189,9036,758,59326,799,586
19182,674,5413,283,7491,250,0477,208,3377,103,07327,653,587
19192,939,6063,452,071942,7807,334,4577,320,27728,074,930
19203,144,2134,486,5823,329,00310,959,79810,883,58630,187,942
19213,549,5905,336,3743,429,66212,315,62612,761,69032,104,957
19223,779,8956,074,7825,486,91215,341,58915,091,87536,745,089
19234,277,7816,243,9517,399,67417,921,40615,695,50743,191,184
19244,445,6276,704,1445,685,10716,834,87816,520,95046,537,833
19254,668,8847,512,0807,613,39919,794,36319,422,83353,353,466
19265,039,6458,333,9217,505,70220,879,26820,915,64559,419,754
19275,311,2608,954,6856,680,17620,946,12121,747,55764,012,247
19285,615,6729,786,2715,667,65121,069,59422,423,16766,404,172
19295,844,4959,583,5766,042,00721,470,07821,300,02469,294,619
19306,010,98710,746,7315,495,42722,253,14522,061,08871,207,539
19315,637,25410,627,3914,432,95620,697,60122,174,52472,686,036
19325,511,8189,682,2514,374,25119,568,32020,087,38172,402,282
19335,237,6888,913,2854,433,29418,584,26718,885,17372,476,056
19345,541,2558,688,4123,821,77918,051,44617,737,79271,969,387
19355,511,4429,167,2873,943,48818,622,21718,744,89171,245,458
19365,585,8559,552,5484,348,53419,486,93719,337,24270,400,176
19375,994,3539,979,4374,252,80320,226,59320,222,71568,559,750
19386,541,35411,005,2934,389,62021,936,26722,051,14768,060,951
19396,971,55011,750,6266,254,79224,976,96825,078,93568,206,674
19407,289,24012,669,5286,772,32726,731,09525,709,19569,486,970
19417,344,05513,144,2164,651,63325,139,90424,726,62867,974,687
19427,441,70413,399,3653,175,46724,016,53624,072,09266,645,990
19437,764,67714,082,8222,640,25224,487,75123,228,43465,131,074
19447,823,73015,144,7442,053,62925,022,10323,801,19763,262,828
19457,895,87115,472,5272,086,27525,454,67325,223,64361,237,937
19468,633,32915,843,8012,743,83727,220,96727,354,63360,025,864
19479,541,13317,018,8473,737,37130,297,35130,479,17457,768,259
19489,806,85917,824,0644,408,01432,038,93732,457,32657,117,475
194910,797,08419,746,5295,458,23236,001,84535,802,20556,605,024

LOCAL AUTHORITIES*.—LOAN INDEBTEDNESS

(Exclusive of Inscribed Debt)

As at 31st March,Counties.Boroughs.Harbour Boards.Electric-power Districts.Other.Totals.
 ££££££
189910,5002,881,5673,804,187 267,0006,963,254
19006,9002,939,0253,845,881 265,5447,057,350
19016,7143,251,8174,035,311 269,2077,563,069
19026,7143,435,8844,123,631 273,4667,839,695
19036,6143,655,4364,256,451 298,6658,217,196
19046,2144,226,8004,308,851 357,0458,898,910
19057,8004,863,9864,382,551 763,90510,018,242
190615,2285,314,1734,554,151 834,49910,718,051
190731,6785,920,3054,676,551 987,51411,616,048
190837,1386,540,0714,877,676 1,077,44912,532,334
190956,5347,016,9265,052,845 1,177,31713,303,622
191076,8777,687,2095,788,400 1,385,19914,937,685
1911185,6318,399,3276,002,400 1,544,41816,131,776
1912404,0789,148,7716,271,717 1,952,92217,777,488
1913605,3539,981,9746,431,827 2,175,97519,195,129
1914800,51511,061,3436,696,029 2,373,39220,931,279
19151,025,60111,352,8026,990,573 2,389,25321,758,229
19161,162,17012,364,0567,135,895 2,655,01723,317,138
19171,260,30712,918,9907,271,594 2,658,28324,109,174
19181,476,41213,461,9197,387,125 2,697,98125,023,437
19191,653,61913,679,6587,417,488 2,769,78425,520,549
19202,032,96015,295,9587,495,641 2,892,19227,716,751
19212,525,84516,041,3687,650,479147,7503,313,89229,679,334
19223,006,58218,060,3228,250,2721,480,0003,566,12334,363,299
19233,803,33421,596,4658,588,9783,052,3003,808,44040,849,517
19243,997,00922,075,0039,173,4844,740,8654,237,16844,223,529
19254,616,68825,882,8659,750,6606,514,7574,315,89851,080,868
19265,390,00328,025,7009,993,2598,745,7555,025,42057,180,137
19275,992,37530,044,39410,257,78110,113,4005,414,67061,822,620
19286,205,46831,599,32410,476,88310,175,3645,817,39064,274,429
19296,350,94232,244,48110,774,13911,986,7075,860,26267,216,531
19306,533,32231,521,14910,460,69212,636,3518,028,55569,180,069
19316,641,05732,139,38910,509,20713,011,5298,415,82770,717,009
19326,685,90531,683,23810,549,49313,121,9608,437,12170,477,717
19336,614,05631,791,67510,620,44213,031,9308,550,25170,608,354
19346,557,84931,358,64710,496,53313,213,0798,522,06970,148,177
19356,402,88930,992,12910,524,78813,399,0538,185,80069,504,659
19366,228,61430,773,34210,218,67213,484,9888,040,46368,746,079
19376,124,76630,505,61210,152,12812,026,6878,141,18566,950,378
19386,082,79430,542,4319,894,11511,890,0318,077,64266,487,013
19396,106,54430,600,6549,746,94012,471,3157,752,76266,678,215
19406,184,12730,768,9939,960,63913,114,6887,977,87268,006,319
19416,154,29330,024,4759,927,57813,106,7747,331,18766,544,307
19426,101,05929,647,1559,796,64712,499,0467,288,87865,332,785
19435,873,13828,852,6489,790,65912,376,5587,076,09363,969,096
19445,632,53428,212,1599,700,96211,828,5086,933,58062,307,743
19455,386,09127,567,4559,496,76311,535,5226,428,80760,414,638
19465,195,74627,230,7739,365,14911,190,5866,360,07859,342,332
19474,957,17126,713,1548,406,37810,841,8136,253,31657,171,832
19484,762,96526,479,0068,234,16311,093,7226,042,98956,612,845
19494,630,63625,924,9258,046,46111,579,5135,999,98156,181,516

* Exclusive of Hospital Boards.

† Debt shown at its nominal amounts that portion domiciled overseas not being converted to its New Zealand currency equivalent.

TRADING BANKS (AVERAGE OF FOUR QUARTERS)

Year.Assets.Liabilities.
Advances.Coin and Bullion.*Totals. (all Assets).Notes in Circulation.*Deposits.Totals (all Liabilities).

*Gold coin and bullion, and note-issue functions, taken over by Reserve Bank (August, 1934).

† As at end of December from 1934 onwards.

‡ The Reserve Bank assumed liability for the outstanding notes of the trading banks as from 1st August, 1936.

 ££££££
190011,343,4112,739,19717,314,5351,299,82515,570,61016,964,582
190112,148,3352,996,34518,422,2741,361,35516,034,84817,490,035
190212,747,7733,201,82418,999,1801,375,78817,231,76818,701,063
190313,435,9933,608,94119,913,5461,450,26719,011,11420,563,879
190414,651,1983,896,19520,893,0961,468,16119,074,96020,643,359
190515,496,3954,006,10821,770,5251,468,97720,545,60122,144,166
190616,649,3294,593,95423,829,9331,574,25422,422,24324,143,008
190718,514,0454,836,71826,584,2391,644,64523,517,11125,334,348
190821,172,8084,840,94229,098,5671,615,10921,821,75323,611,903
190919,078,0324,947,09626,937,2651,577,55821,996,62123,728,326
191018,439,9995,035,76426,398,9271,626,09424,968,76126,742,081
191121,259,7275,195,33329,433,6141,677,84226,765,12228,625,803
191222,907,6565,338,29531,196,4001,714,66725,622,08327,508,348
191322,902,2985,204,26630,708,9321,674,33325,733,18727,591,099
191424,250,2465,712,75132,502,3121,998,38827,640,50729,808,349
191523,638,9706,781,00633,209,4832,846,27531,433,65334,448,270
191624,911,7067,393,91737,015,4864,049,52937,507,91741,977,619
191728,847,7498,072,27944,979,6155,410,95742,930,71348,541,961
191831,711,3508,085,96148,570,1266,266,76845,562,93952,048,732
191931,717,7208,017,15948,615,2097,087,54550,489,44457,861,393
192038,241,9327,728,94256,111,4337,890,41859,405,34167,818,469
192150,607,5417,660,53268,701,2827,569,31949,397,41158,808,439
192244,768,1787,822,56261,779,5707,019,22045,913,39453,868,834
192343,322,2427,900,59459,641,2356,593,06849,039,48256,204,292
192444,537,1617,816,14561,325,8656,587,54649,502,49957,131,235
192545,298,9557,722,91762,128,8086,775,47052,207,20260,219,697
192649,149,2607,797,31965,765,2976,730,42150,135,11458,008,161
192750,032,2037,874,97166,626,6766,510,01848,294,09656,321,397
192846,179,4637,511,83362,819,4856,374,04353,799,22161,850,595
192949,278,1947,051,39165,475,5296,433,91157,609,74665,232,866
193053,657,3976,798,55669,748,0716,255,71756,425,01463,984,419
193152,419,5276,917,89768,557,1205,782,35453,645,01861,463,034
193250,255,6745,957,94469,015,2095,958,26852,851,73660,649,208
193345,705,0445,105,84669,656,7006,205,42957,620,23365,281,375
193441,389,4573,477,24873,509,1774,844,82663,417,29969,259,271
193544,666,541767,58983,008,626765,34361,474,51165,981,411
193645,918,432720,31783,865,50165,153,97265,939,649
193749,199,592742,50085,822,90266,842,69267,842,240
193855,650,065875,82585,072,32965,038,69066,820,736
193954,745,801746,80196,108,63767,279,45175,978,460
194047,983,526718,208101,496,18377,345,06382,032,696
194149,746,397761,914105,291,60480,720,10184,073,585
184245,439,520686,902118,948,66990,880,339100,768,355
194343,249,581643,614132,698,632106,323,897114,628,316
194446,773,498713,076140,938,803117,568,290122,214,224
194551,759,853684,572164,498,691130,003,009142,594,988
194658,193,142726,789179,027,829149,658,031160,503,841
194776,164,039907,814191,991,738164,068,429177,593,488
194888,159,7641,393,197193,458,134175,668,670190,538,286
194983,357,0421,501,540208,278,008186,092,099208,920,069
195094,715,1171,687,717225,348,566202,200,423233,969,022

POST OFFICE SAVINGS-BANK

Year.Number of Depositors at End of Year.Total Amount of Deposits during Year.Total Amount of Withdrawals during Year.Excess of Deposits over Withdrawals.Interest Credited to Depositors.Total Amount to Credit of Depositors at End of Year.

*Fifteen months, 1st January, 1920, to 31st March, 1921.

† Excess of withdrawals over deposits.

‡ Does not include £11,447,731 from war gratuity accounts transferred to Post Office Savings-bank as from 1st April, 1949.

  £££££
1899183,0463,644,9803,417,299227,681134,9185,320,371
1900197,4084,170,4293,827,416343,013146,1695,809,552
1901212,4364,611,4564,230,193381,263159,1986,350,013
1902227,4655,069,6194,708,772360,847172,9266,883,787
1903243,6755,661,6935,343,828317,765187,1307,388,682
1904259,1645,836,5405,664,770171,770200,9307,761,382
1905276,0666,625,7445,984,185641,559259,0818,662,023
1906298,7467,907,1556,907,1041,000,051291,1929,953,266
1907319,7739,351,6648,125,1231,226,541343,42411,523,231
1908342,0779,674,0759,417,820256,255379,80812,159,294
1909359,7149,611,1209,499,320111,800395,80412,666,898
1910380,58510,708,9399,695,5151,013,424424,66814,104,990
1911405,56611,627,36810,662,046965,322472,87515,543,187
1912432,19911,725,18311,449,711275,472511,59916,330,257
1913458,59411,286,70211,041,454245,248555,90817,131,414
1914483,26211,904,32310,603,0181,301,305615,31019,048,029
1915509,08513,706,05711,294,9732,411,084707,25222,166,365
1916538,07215,576,40812,957,4202,618,988817,85625,603,209
1917566,35117,106,52914,461,1692,645,360947,82129,196,390
1918590,20518,101,10514,938,8423,162,2631,059,47233,418,125
1919630,78329,758,44725,962,3773,796,0701,178,93538,393,130
1920–21*664,81944,302,85241,162,4863,140,3661,818,53543,352,031
1921–22678,93029,125,99730,236,231−1,110,2341,599,90743,841,704
1922–23690,79026,682,42727,769,263−1,086,8361,605,52544,360,393
1923–24710,15729,598,37229,510,32188,0511,649,97646,098,421
1924–25735,14829,582,89730,413,609− 830,7121,680,92046,948,628
1925–26758,15531,833,62232,602,506− 768,8841,731,57847,911,322
1926–27783,82729,456,38330,149,629− 693,2461,767,42648,985,502
1927–28804,72527,611,06630,584,998−2,973,9321,747,15647,758,726
1928–29828,29627,252,38128,111,940− 859,5591,745,05048,644,217
1929–30852,75728,561,85429,575,994−1,014,1401,806,41449,436,491
1930–31878,04324,531,56928,063,338−3,531,7691,763,82547,668,547
1931–32877,09019,463,98525,488,081−6,024,0961,611,04843,255,499
1932–33797,09716,933,17619,635,928−2,702,7521,475,87442,028,621
1933–34798,26219,428,85317,818,1721,610,6811,231,08944,870,391
1934–35817,61724,179,53720,946,5623,232,9751,320,34849,423,714
1935–36840,67125,619,77523,533,5962,086,1791,406,45952,916,352
1936–37880,85730,676,96927,042,0033,634,9661,514,22058,065,538
1937–38920,80533,041,08229,629,0743,412,0081,669,38463,146,930
1938–39946,82230,434,29134,597,708−4,163,4171,726,57460,710,087
1939–40960,56525,151,28729,462,838−4,311,5511,603,46758,002,003
1940–41992,79228,607,22125,319,1463,288,0751,666,71062,956,788
1941–421,039,78332,044,73425,376,7456,667,9891,820,60571,445,382
1942–431,086,99638,097,07026,889,33911,207,7311,816,82084,469,933
1943–441,128,93647,648,75435,580,16512,068,5892,075,67698,614,198
1944–451,161,88654,585,12042,158,65612,426,4642,451,628113,492,290
1945–461,203,18167,861,04255,626,41912,234,6232,787,413128,514,326
1946–471,239,94872,380,54362,747,0939,633,4503,094,491141,242,267
1947–481,277,26572,553,41468,660,4583,892,9563,307,081148,442,304
1948–491,311,29270,690,64067,722,7242,967,9163,438,790154,849,010
1949–501,372,67283,689,10982,824,706864,4033,821,285170,982,452

POSTAL

Year.Letters, Cards, &c., posted and delivered.Total Mall Matter (including Parcels) posted and delivered.Money-orders Issued.Postal Notes Issued.*Postal Revenue.*
Number.Amount.Number.Amount.

*Year ended 81st March following.

† Counted once only.

‡ Not available.

§ Increase largely accounted for by withdrawals from savings-bank accounts for payment at sub-post-offices being paid by Savings-bank money-orders as from 31st March, 1946.

    £ ££
189938,484,37173,728,018344,6641,118,808461,447144,631325,301
190039,898,47976,801,567369,8341,214,853490,506151,180316,858
190152,567,56091,599,577405,9671,286,508556,316169,527281,097
190257,714,63196,452,068367,2071,277,059616,264187,709302,604
190361,687,457102,732,717396,3121,416,225707,044215,275343,207
190466,501,434110,778,154407,7831,476,887785,347244,719383,243
190571,116,261122,493,568417,4411,541,712875,324270,300410,967
190679,084,566132,936,185439,0201,686,231981,642307,323438,729
1907159,680,654255,279,486441,4871,773,5911,092,631340,436478,388
1908175,440,111281,699,027488,0842,050,6841,222,280383,472544,642
1909186,926,337295,886,182538,7402,307,5931,414,752441,099566,990
1910196,768,968310,236,516569,6572,457,5231,666,959517,315603,150
1911205,450,627323,663,638607,7642,759,3931,821,566566,650613,252
1912214,184,119333,620,976666,4253,231,3501,970,643627,443644,637
1913223,961,200338,400,371690,7453,357,7742,238,842711,518695,136
1914233,901,320359,031,400691,5183,427,5052,314,327714,683698,898
1915242,547,859356,519,892664,8603,471,8182,370,079712,753858,583
1916242,121,361347,016,697669,3553,607,0872,286,463685,708964,793
1917245,796,945344,962,697642,6833,476,6452,166,597625,920976,027
1918242,527,369333,826,886638,5003,649,3712,091,051610,591983,585
1919247,143,183340,448,228690,2914,604,0592,197,520646,4111,068,489
1920259,743,234360,747,489699,6745,276,7762,280,219691,2011,352,677
1921253,767,131359,096,963669,3834,850,8202,377,622723,2541,499,304
1922239,997,081356,188,284659,9434,278,5292,434,506730,2321,378,421
1923252,021,959383,196,807684,9794,390,1592,652,777786,1461,146,588
1924272,311,925426,907,636731,5114,692,9292,846,333840,5591,257,942
1925294,630,760471,503,757766,6894,977,2303,040,722902,1191,320,277
1926298,617,089486,381,016793,1105,033,1273,329,638965,2701,400,886
1927297,478,294496,553,440803,5354,995,0903,614,2171,015,2131,439,587
1928298,548,364517,749,720807,8854,977,5223,575,9841,057,6241,426,936
1929309,162,103532,070,649835,3585,187,5533,816,6351,123,4461,498,684
1930313,148,058542,003,413833,5055,069,6293,907,2881,128,8071,582,550
1931263,633,952465,484,009714,4783,993,0352,884,654952,4441,744,553
1932246,395,130436,615,397648,9513,335,5522,686,648958,3731,393,655
1933261,979,312461,132,572635,6743,112,7292,883,0701,061,9461,294,757
1934275,063,943486,830,600654,6213,209,7133,325,5611,140,6951,384,265
1935288,645,484526,126,679673,0573,374,0293,827,4171,293,9551,466,857
1936292,098,761534,097,248733,9663,794,6483,833,2881,378,3871,628,868
1937302,170,027547,687,799784,4954,312,6293,746,5601,454,7931,822,308
1938316,309,341608,682,253848,0504,802,2933,835,4001,485,4262,033,488
1939312,603,575591,476,930911,4845,094,3643,374,8521,323,3981,938,607
1940296,684,295531,941,815812,6674,435,0072,558,9161,020,6302,084,351
1941142,996,000261,870,000751,7224,302,1262,408,020980,9522,194,042
1942817,3984,960,5612,242,034933,6342,283,847
1943786,5115,500,6872,215,572945,2932,464,304
1944762,1795,989,3692,223,041951,9892,619,066
1945140,355,000236,844,000769,8577,202,2002,266,285982,5972,645,257
1946160,680,000*294,326,000*903,36910,624,440§2,354,4771,028,1114,009,763
1947159,778,000*301,067,000*917,29010,804,3142,464,7831,071,6134,092,930
1948162,131,000*319,229,000*942,65410,842,8652,483,9291,106,4794,293,823
1949169,798,000*343,024,000*952,21410,855,6482,460,7621,119,6674,185,348

GOVERNMENT RAILWAYS

Year Ended 31st, March.Miles Open for Truffle.Capital Cost of Open Lines.Train-mileage.Passengers carried, excluding Season-ticket Holders.Goods and Live-stock.*Revenue.Expenditure.

*Equivalent tonnage of live-stock.

† From 1925–26, figures relate to railway operation only.

‡ Capital cost written down by £10,400,000.

  £  Tons.££
19002,10416,703,8874,187,8935,468,2843,251,7161,623,8911,052,358
19012,21217,207,3284,620,9716,243,5933,461,3311,727,2361,127,848
19022,23518,170,7225,066,3607,356,1363,667,0391,874,5861,252,237
19032,9119,081,7355,443,3337,575,3903,918,2611,974,0381,343,415
19042,32820,692,9115,685,3998,306,3834,259,2172,180,6411,438,724
19052,37421,701,5726,107,0798,514,1124,185,4672,209,2311,492,900
19062,40722,498,9726,413,5738,826,3824,415,1662,349,7041,621,239
19072,45823,504,2726,755,4549,600,7864,824,5632,624,6001,812,482
19082,47424,365,6477,051,2749,756,7165,070,1762,761,9381,949,759
19092,67427,762,5927,458,23610,457,1445,135,4082,929,5262,114,815
19102,71728,513,4767,889,16611,141,1425,490,0183,249,7902,169,474
19112,75329,606,5468,141,07511,200,6135,863,6743,494,1822,303,272
19122,79830,506,0898,371,68711,891,1345,887,9083,676,5092,465,896
19132,85131,611,2209,016,22413,123,8796,246,1283,971,0022,705,609
19142,85432,355,0879,319,26813,355,8936,019,6334,043,3282,880,323
19152,94534,133,8259,383,42013,565,7726,453,4724,105,4572,920,455
19162,96034,857,8829,356,52214,201,5066,370,9454,548,3562,910,883
19172,96035,378,6649,146,33114,173,1156,239,1734,800,8102,926,864
19182,98336,001,4327,468,64611,408,1565,742,9684,687,7003,042,907
19192,98336,167,6817,477,58311,374,5215,611,7384,988,6323,308,575
19202,99636,390,1157,408,60812,760,8146,000,2795,752,4874,105,067
19213,00937,235,2549,303,39215,315,6406,487,2796,908,5315,636,601
19223,02139,309,0978,717,26514,262,4406,321,3516,643,5916,237,727
19233,02840,275,1618,346,73114,256,6106,618,5886,727,8025,502,497
19243,05341,399,4279,024,50313,817,3786,918,3496,984,2115,403,766
19253,08544,570,7469,083,62312,397,0797,025,3167,112,5245,545,416
19263,13847,608,67610,319,40711,787,7237,246,6927,589,2746,164,570
19273,16449,183,91610,723,86410,274,8787,299,7527,423,4726,158,283
19283,18051,187,37610,838,5949,272,5477,358,3887,343,8456,302,119
19293,28756,568,59811,113,4829,046,9817,613,4457,524,8646,374,579
19303,28757,787,67112,022,0438,466,7797,788,9737,473,9936,848,026
19313,32260,545,15411,281,8987,265,9126,957,7096,781,3886,406,143
19323,31551,424,88310,168,7206,503,5665,824,8115,788,9655,301,653
19333,31551,480,9499,828,8536,870,5705,490,6865,339,0754,833,754
19343,32053,909,34710,163,4747,511,3465,642,1995,628,8354,877,146
19353,32054,089,19010,626,4007,809,0356,023,9605,908,0645,138,588
19363,32054,253,05911,050,3767,963,8246,188,8056,243,5195,523,193
19373,32054,696,43711,868,0838,284,9566,813,2406,903,6046,338,385
19383,32356,065,18712,777,8528,069,0187,516,0497,591,8257,291,785
19393,31958,676,60813,072,6157,813,4367,539,0128,005,0597,663,632
19403,39063,059,18813,366,7988,283,0677,673,9508,761,6377,943,120
19413,39064,762,79413,559,6469,440,0878,426,1829,694,1908,406,790
19423,39064,904,02013,978,96111,105,6278,473,76510,383,8808,902,592
19433,46068,685,06315,139,88217,171,2148,887,08912,415,08010,019,659
19443,50470,999,12515,328,98718,317,3239,026,62613,464,97911,365,917
19453,50471,353,57412,802,53613,629,5238,954,23912,448,30711,696,895
19463,52874,466,73113,454,50813,553,0839,210,46613,104,58712,549,724
19473,52875,354,24313,169,23310,222,3259,329,33312,823,78413,644,779
19483,52677,089,03113,712,1038,111,4179,524,04313,964,28015,090,091
19493,52678,796,32013,895,4887,708,0499,666,13015,338,88216,788,256
19503,52681,551,76314,420,8527,881,2559,948,26116,062,06617,360,913

BANKRUPTCY

Year.Number of Bankruptcies.Debtors' Statements of Assets, excluding Amounts secured to Creditors.Amount realized by Official Assignees.Amount of Debts proved.Amount paid in Dividends and Preferential Claims.
  ££££
190030477,68953,415141,80037,411
190122258,65849,78184,45230,358
190220561,60439,386110,99529,406
190320446,76723,76188,01917,618
190425786,09443,514125,39228,103
1905304100,81347,798146,33228,150
1906347106,37650,761192,92735,448
190735077,69859,849158,66342,459
1908406200,44767,018199,06947,800
1909471204,18771,351259,01744,110
1910393127,63479,100176,00147,796
191134488,59240,009133,51728,757
191231264,39839,965120,32526,825
1913343155,58242,735228,82925,813
1914391174,41064,153199,25133,910
191529492,87663,310153,92642,374
1916304123,44156,416172,77429,223
1917265138,69663,645178,24427,405
191816450,35667,72988,60733,176
191914143,62754,66259,76724,980
192014544,02647,89777,75245,227
1921336362,60178,271558,50438,646
1922690344,861126,145834,35663,009
1923674368,673124,641668,92565,667
1924670279,602118,641703,99574,878
1925653235,37798,648471,02880,187
1926752236,915102,899585,68771,515
1927867331,363108,850679,47372,388
1928806236,264116,613767,32768,763
1929687233,65591,180502,11254,759
1930780471,50283,308827,34568,611
1931848401,649108,8091,042,18763,185
1932661252,34875,657624,89255,940
1933450114,81761,723489,89547,884
193432672,57244,533258,92033,788
193525768,21641,037225,50823,142
193626040,55732,983169,86621,520
193722259,10055,970171,70626,700
1938267118,69864,511230,46330,793
193926782,31844,171225,49029,950
194021335,37242,418125,28930,288
194116524,53835,45371,01134,428
19428213,66529,75332,22719,428
1943456,14818,88320,05213,136
19445113,20913,46651,03516,741
1945459,06018,530118,21610,041
19465210,66320,94248,50614,328
19477421,43315,52844,73112,386
194814856,22950,280143,28224,945
194917953,03538,410203,17320,114
195014229,31549,252125,91736,060

Appendix A. APPENDICES

(a) PRINCIPAL EVENTS

CHRONOLOGICAL LIST OF SOME NOTEWORTHY EVENTS IN THE HISTORY OF NEW ZEALAND

  • 1642. Discovery of New Zealand by Tasman.

  • 1765. Discovery of Pukapuka Island, in the Cook Islands Group.

  • 1769. Captain Cook's first visit to New Zealand.

  • 1773. Captain Cook discovered Island of Manuae, in the Cook Island's Group.

  • 1788. Discovery of Macaulay and Curtis Islands (Kermadec Group), and of Bounty Islands.

  • 1791. Discovery of Snares and Chatham Islands.

  • 1792. First sealing gang left on New Zealand coast.

  • 1793. Discovery of Raoul or Sunday Island (Kermadec Group). Visit of Lieutenant-Governor King, of Norfolk Island, to Doubtless Bay.

  • 1800. Discovery of Antipodes Islands.

  • 1806. Discovery of Auckland Islands.

  • 1807. Defeat of Hongi and the Ngapuhi Tribe.

  • 1810. Discovery of Campbell Island.

  • 1814. Arrival of Rev. Samuel Marten, and introduction of Christianity. Horses, cattle, sheep, and poultry first brought to New Zealand.

  • 1818. Hongi's and Te Morenga's great expedition to East Cape.

  • 1819–20. Raid on Taranaki and Port Nicholson by Patuone, Nene, and Te Rauparaha.

  • 1820. Hongi's visit to England. First vessel entered Auckland Harbour.

  • 1821. Hongi's capture of Mauinaina and Te Totara Pas. Ngati-Toa migration from Kawhia to Otaki.

  • 1822. Fall of Matakitaki Pa, Waikato, to Hongi.

  • 1823. Fall of Mokoia Pa, Rotorua, to Hongi.

  • 1823–28. Jurisdiction of Courts of Justice in New South Wales extended to British subjects in New Zealand.

  • 1824. Fall of Te Whetumatarau Pa to Pomare.

  • 1825. First attempt at colonization, by an expedition under Captain Herd. Great defeat of Ngati-Whatau by Hongi.

  • 1827. Hongi's forces destroyed mission station at Whangaroa.

  • 1828. Death of Hongi.

  • 1829. Brig “Hawes” captured by Maoris.

  • 1830. Battles of Taumata-wiwi and Kororareka. Fall of Kaiapohia Pa, Canterbury, to To Rauparaha.

  • 1831. Tory Channel whaling-station established. Application of thirteen chiefs for the protection of King William IV. Capture of Pukerangiora Pa, Waitara, by Waikato.

  • 1832. Repulse of Waikato at Nga-motu Pa.

  • 1833. Mr. James Busby appointed British Resident at Bay of Islands.

  • 1834. Battle near Otaki. Waimate Pa shelled and captured by British—first occasion on which H.M. troops employed in New Zealand.

  • 1835. Declaration of independence of the whole of New Zealand as one nation, with title of “United Tribes of New Zealand.” Ngati-Awa tribes migrated to and conquered Chatham Islands.

  • 1836. Battles between Waikato and Te Arawa.

  • 1838. Pelorus Sound discovered. Arrival of Roman Catholic mission under Bishop Pompallier.

  • 1839. Governor of New South Wales authorized to include within the limits of that colony any territory that might be acquired in sovereignty by Her Majesty in New Zealand. Preliminary expedition of New Zealand Company under Colonel Wakefield arrived at Port Nicholson.

  • 1840. Arrival of New Zealand Company's settlers at Port Nicholson. Treaty of Waitangi signed. British sovereignty proclaimed. Captain Hobson appointed Lieutenant-Governor, with residence at Auckland. Settlements formed at Petre (Wanganui) and Akaroa.

  • 1841. Issue of charter of incorporation of New Zealand Company. New Zealand proclaimed independent of New South Wales. Arrival of New Plymouth settlers.

  • 1842. Settlement founded at Nelson.

  • 1843. Affray with Maoris at the Wairau.

  • 1844. Royal flagstaff at Kororareka out down by Heke.

  • 1845. Destruction of Kororareka by Heke.

  • 1846. Arrival of first steam vessel (H.M.S. “Driver”) in New Zealand waters. Capture of pa at Ruapekapeka and termination of Hoke's war. Maori hostilities near Wellington. Te Rauparaha captured and detained as a prisoner. New Zealand divided into two provinces, New Munster and New Ulster, and representative institutions conferred.

  • 1847. Attack by Maoris on Wanganui.

  • 1848. Suspension of that part of New Zealand Government Act which had conferred representative institutions. Severe earthquake at Wellington. Otago founded.

  • 1850. Surrender of New Zealand Company's charter, all its interests reverting to the Imperial Government. Canterbury founded.

  • 1852. Discovery of gold at Coromandel. Constitution Act passed, granting representative institutions to New Zealand, and dividing country into six provinces.

  • 1854. Opening at Auckland of first session of the General Assembly.

  • 1855. First members elected to the House of Representatives under system of responsible Government. Very severe earthquake on both sides of Cook Strait.

  • 1856. Appointment of first Ministry under system of responsible Government.

  • 1857. Goldfield opened at Collingwood.

  • 1858. New Provinces Act passed. Hawke's Bay Province constituted.

  • 1859. Establishment of Marlborough Province.

  • 1860. Hostilities in Waitara district.

  • 1861. Truce arranged with Waitara Maoris. Bank of New Zealand incorporated-Southland Province established. Gold discovered at Gabriel's Gully, Otago

  • 1862. Coromandel proclaimed a goldfield. Wreck of s.s. “White Swan,” with loss of many public records. First electric-telegraph line opened—Christchurch to Lyttelton.

  • 1863. Wreck of H.M.S. “Orpheus” on Manukau bar, with loss of 181 lives. Control of Maori affairs transferred to Colonial Government. Commencement of Waikato War. Defeat of Maoris at Rangiriri, and occupation of Ngrarua-wahia. First railway in New Zealand, portion of Christchurch-Lyttelton line opened.

  • 1864. Severe fighting in Waikato and elsewhere, including Battles of Rangiaohia, Orakau, Gate Pa, and Te Ranga. First major discovery of gold on west coast of South Island.

  • 1865. Seat of Government transferred to Wellington. Further fighting, followed by proclamation of peace. Activities of Hauhau fanatics, including murders of Europeans. Rebel Maoris defeated at Wairoa.

  • 1866. Further defeats of rebel Maoris. Commencement of Panama steam mail-service. Cook Strait submarine telegraph-cable laid.

  • 1867. Opening of Thames Goldfield. Lyttelton Tunnel completed. Admission of four Maori members to House of Representatives as direct representatives of Maori people.

  • 1868. Maori prisoners, under leadership of Te Kooti, seized schooner “Rifleman” and escaped from Chatham Islands to mainland, where they massacred Europeans. Considerable fighting with these and other rebel Maoris.

  • 1869. Continuation of fighting with rebels and of pursuit of Te Kooti. Termination of Panama mail-service. Visit of H.R.H. the Duke of Edinburgh. Government Life Insurance Office established.

  • 1870. Further fighting with Te Kooti. Last of Imperial troops left New Zealand. Commencement of San Francisco mail-service. Possession taken of Bounty Island. Inauguration of Vogel public-works policy. Act passed to establish the New Zealand University. Southland Province reunited with Otago.

  • 1871. Commencement of railway-construction under public-works policy.

  • 1872. Resumption of friendly relations with Waitara Maoris. Appointment of Maori chiefs (two) to Legislative Council. Public Trust Office created.

  • 1873. Establishment of New Zealand Shipping Company.

  • 1874. In pursuance of immigration and public-works policy, 31,774 assisted immigrants introduced. Westland Province established.

  • 1875. Resumption of amicable relations with Maori King. Establishment of Union Steam Ship Company. Abolition of Provinces Act passed.

  • 1876. New Zealand connected by cable with Australia. Abolition of Provinces Act came into operation, provincial institutions being abolished and the country divided into counties and boroughs.

  • 1877. Education Act passed, providing for free and compulsory education.

  • 1878. Completion of the Christchurch–Invercargill railway.

  • 1879. Trouble with Parihaka Maoris, under Te Whiti, and imprisonment of 180 of these. Triennial Parliaments Act passed. Adult male suffrage introduced. Kaitangata coal-mine explosion, whereby thirty-four lives lost.

  • 1830. Release of Parihaka prisoners.

  • 1881. Wreck of s.s. “Tararua,” with loss of 130 lives. Severe earthquakes in Wellington. Arrest of Te Whiti and Tohu.

  • 1882. First shipment of frozen meat from New Zealand.

  • 1883. Amnesty to Maori political offenders proclaimed. Te Whiti and Tohu released. Direct steam communication inaugurated between New Zealand and England.

  • 1885. New Zealand Industrial Exhibition at Wellington.

  • 1886. Taraweru eruption, involving loss of 101 lives and destruction of Pink and White Terraces.

  • 1887. Annexation of Kermadec Islands. Members of House of Representatives reduced to seventy-four, including four Maoris.

  • 1888. British protectorate over Cook Islands proclaimed.

  • 1889. South Seas Exhibition at Dunedin.

  • 1890. Great maritime strike. First election of House of Representatives under one-man-one-vote principle.

  • 1891. Inauguration of Liberal regime under Hon. John Ballance, succeeded on his death in 1893 by Mr. Seddon. This and following years marked by passage of industrial and social legislation.

  • 1892. Introduction of lease-in-perpetuity system of land-tenure.

  • 1893. Franchise extended to women. Special licensing poll introduced.

  • 1894. Industrial Conciliation and Arbitration Act passed. Government Advances to Settlers Act passed. Wreck of s.s. “Wairarapa,” with loss of 135 lives.

  • 1895. Government assumed management of Midland Railway.

  • 1896. Brunner Mine explosion, causing sixty-seven deaths. Abolition of non-residential or property qualification to vote. Government Valuation of Land Act passed.

  • 1898. Old-age Pensions Act passed.

  • 1899. Labour Day instituted. New Zealand Contingent (the first of ten) sent to South Africa.

  • 1900. Number of European representatives in Lower House increased to seventy-six.

  • 1901. T.R.H. the Duke and Duchess of York visited New Zealand. Penny postage adopted by New Zealand. Cook and other Pacific islands annexed.

  • 1902. Pacific cable opened. Wreck of s.s. “Elingamite”, with loss of forty-three lives. Conference of colonial Premiers in London.

  • 1903. Empire Day proclaimed. State Fire Insurance Act passed.

  • 1905. Workers' Dwellings Act passed. Title of New Zealand's representative in London altered to “High Commissioner.”

  • 1906. Death of Rt. Hon. R. J. Seddon, Premier since 1893. Advances to Workers Act passed. New Zealand International Exhibition at Christchurch.

  • 1907. New Zealand constituted a Dominion. Lease-in-perpetuity system of land-tenure' abolished. Parliament Buildings destroyed by fire.

  • 1908. Through railway communication established between Wellington and Auckland. Wellington-Manawatu Railway purchased by Government. Second Ballot Act passed.

  • 1909. S.s. “Penguin” wrecked in Cook Strait, with loss of seventy-five lives. Battle-cruiser presented by New Zealand to Imperial Government. System of compulsory military training introduced.

  • 1910. Field-Marshal Lord Kitchener reported and advised on New Zealand defences. Public Debt Extinction Act and National Provident Fund Act passed.

  • 1911. Wireless telegraphy installed in New Zealand. Widows' Pensions Act passed. First poll on national prohibition taken.

  • 1912. Foundation-stone of new Parliament Buildings laid. Public Service placed under Commissioner control.

  • 1913. Visit of Dominions Royal Commission. Visit of gift ship H.M.S. “New Zealand” to Dominion. Extensive strikes. Second Ballot Act repealed. Industrial, Agricultural, and Mining Exhibition at Auckland.

  • 1914. Western Samoa occupied by New Zealand Advance Expeditionary Force. Main Expeditionary Force left for Egypt. Huntly coal-mine disaster, whereby forty-three lives lost.

  • 1915. New Zealand Expeditionary Force engaged in operations on Gallipoli Peninsula. National Cabinet formed. National register of men compiled. Pensions for miners introduced.

  • 1916. New Zealand Division transferred to western front, Mounted Brigade being retained in Egypt. Compulsory enrolment of men for war service introduced. Lake Coleridge electric-supply scheme opened.

  • 1918. S.s. “Wimmera” sunk by enemy mine off New Zealand coast, with loss of 26 lives. Otira Tunnel pierced. Great influenza epidemic, causing over five thousand deaths.

  • 1919. Women made eligible for seats in Parliament. New Zealand represented at Peace Conference by Right Hon. W. F. Massey, P.C., Prime Minister.

  • 1920. Visit of H.R.H. the Prince of Wales. Railway strike. First aeroplane flight over Cook Strait. League of Nations gave New Zealand mandate to administer Western Samoa. Anzac Day constituted.

  • 1921. Samoa Act passed, making provision for government in terms of mandate. New Zealand represented at Disarmament Conference, Washington, by Hon. Sir John Salmond.

  • 1922. Meat-export trade placed under control of a Board.

  • 1923. Opening of Otira Tunnel. Ross Dependency proclaimed, and placed under jurisdiction of Governor-General. Dairy-produce Export Control Act passed, and adopted by dairy producers.

  • 1924. Railway strike. Direct two-way radio communication effected with England. Motor-vehicles Act provided for registration and annual licensing of motor-vehicles. Land Transfer (Compulsory Registration of Titles) Act passed. Pensions for blind persons introduced.

  • 1925. Repayment of the Public Debt Act passed. New Zealand and South Seas International Exhibition at Dunedin. Death of Right Hon. W. F. Massey.

  • 1926. Administration of Tokelau (Union) Islands transferred to New Zealand. Absolute control adopted by Dairy-produce Control Board. Family Allowances Act passed.

  • 1927. Visit of T.R.H. the Duke and Duchess of York. Summer Time Act passed. Petrol-tax imposed.

  • 1928. Kingsford Smith and party made first successful flight across Tasman Sea. Compulsory insurance of motor-vehicles provided for by Motor-vehicles Insurance (Third-party Risks) Act.

  • 1929. Severe earthquake in Murchison–Karamea district caused seventeen deaths-Daylight-saving (half-hour) permanently adopted for summer months Fatal clash between police and Mau at Apia, Western Samoa.

  • 1930. Legislation providing for relief of unemployment first passed. Deaths of Sir Joseph Ward, Sir Robert Stout, and Sir Thomas Mackenzie, ex-Premiers.

  • 1931. Worst earthquake in history of New Zealand occurred in Hawke's Bay, resulting in the loss of 255 lives. General reduction of 10 per cent. in wages and salaries. Parliament approved draft Statute of Westminster. Mortgagors' relief legislation passed.

  • 1932. Industrial Conciliation and Arbitration Amendment Act made important changes in industrial legislation. National Expenditure Adjustment Act made reductions in old-age and other pensions, in salaries of State employees, and' in rentals, interest rates, and other fixed charges. The historic Waitangi Estate presented to the nation by Their Excellencies Lord and Lady Bledisloe. New Zealand represented at Ottawa Conference.

  • 1933. Exchange raised at instance of Government to £125 N.Z. for £100 London. (telegraphic transfers). Sales tax of 5 per cent. on wholesale sales instituted. Conversion of internal public debt with reduction in interest rates, and provision made for local authorities' interest reduction and loans conversion. Successful experimental shipments of chilled beef to England. Issue of New Zealand silver coinage.

  • 1934. First official trans-Tasman air-mail. Reserve Bank incorporated and commenced business. H.R.H. the Duke of Gloucester arrived on an official visit. First licensed air-transport service commenced operations.

  • 1935 Bank-notes of trading banks ceased to be legal tender. Rural Mortgagors Final-Adjustment Act passed, and Court of Review established. National Government defeated at general election, and Labour Government assumed office.

  • 1936. Inauguration of inter-Island trunk air services. Reserve Bank nationalized. System of guaranteed prices for butter and cheese introduced. Forty-hour week became operative. Powers of Arbitration Court restored. Rail-car services inaugurated. New Zealand elected to seat on League of Nations Council.

  • 1937. New Zealand represented at Imperial Conference by Right Hon. M. J. Savage, Hon. W. Nash, and Mr. W. J. Jordan. Death of Lord Rutherford of Nelson.

  • 1938. Death of Dr. Sir F. Truby King. Mr. W. J. Jordan, New Zealand's representative on League of Nations, elected President of the League Assembly. Social Security Act passed. General election: Labour Government returned for second term. Introduction of import selection and control.

  • 1939. Declaration of war with Germany. Recruitment for 2nd New Zealand Expeditionary Force. Arrangements for purchase of primary products by Imperial Government. New Zealand Centennial Exhibition opened at Wellington. Issue of New Zealand bronze coinage. Naval engagement off River Plate. South America, in which H.M.S. “Achilles,” largely manned by New Zealand ratings, in action.

  • 1940. Centennial celebrations. Departure of First Echelon of 2nd New Zealand Expeditionary Force. Death of the Prime Minister, the Right Hon. M. J. Savage, P.C.; succeeded in office by Hon. P. Fraser. Declaration of war with Italy. R.M.S. “Niagara” sunk off New Zealand coast by enemy mine. Ballots for military service. National savings scheme inaugurated. Island of Nauru bombarded by enemy raider.

  • 1941. Italian raider sunk by H.M.N.Z.S. “Leander” in Indian Ocean. Daylight saving period extended to cover whole year. Minesweeper H.M.N.Z.S. “Puriri” sunk by mine in Hauraki Gulf, five fatalities. First enrolment of married men for military service. Death penalty abolished, also flogging and whipping. Declaration of war with Finland, Hungary, and Rumania. Declaration of war with Japan. Territorial forces mobilized.

  • 1942. Complete mobilization of Military Forces ordered. Introduction of control of industrial man-power. Compulsory enrolment of all male British subjects between ages of eighteen and sixty-five, inclusive, in Emergency Reserve Corps. Lend-lease reciprocal aid extended to include Australia and New Zealand. Gold to value of £2,397,000 salvaged from R.M.S. “Niagara.” Rationing introduced, principal items being tea, sugar, clothing, footwear, and household linen. Severe earthquakes in Wairarapa and Wellington districts on 24th June and 2nd August. Mobilization of women for essential work. Thirty-seven lives lost in fire at Seacliff Mental Hospital. Economic Stabilization Emergency Regulations issued.

  • 1943. H.M.N.Z. Corvette “Moa” sunk by Japanese with loss of five lives. Death of Right Hon. J. G. Coates, P.C., M.C., member of War Cabinet and former Prime Minister. North African campaign brought to a successful conclusion. Serious railway accident near Hyde, Central Otago—twenty-one persons killed and thirty-eight injured. General election: Labour Government returned for third term. 2nd N.Z.E.F. (3rd Division) took part in action against Japanese in the Pacific Area. Butter rationing introduced. 2nd Division, 2nd N.Z.E.F., rejoined 8th Army in Italy.

  • 1944. Australian - New Zealand Agreement, 1944, providing for collaboration on matters of mutual interest. Meat rationing introduced, also egg rationing introduced in certain areas. Annual Holidays Act passed. Third division, 2nd N.Z.E.F., returned to New Zealand from the Pacific Area. Invasion of France by Allied Forces commenced. Mutual-aid Agreement between Canadian and New Zealand Governments signed. First conference under terms of the Australian - New Zealand Agreement held in Wellington. New Zealand delegation attended British Commonwealth Civil Aviation Conference at Montreal and International Civil Aviation Conference at Chicago.

  • 1945. Royal Commission commenced inquiries into licensing laws of New Zealand. New Zealand represented on United Nations Committee of Jurists by the Chief Justice, Sir Michael Myers. War in Europe ended (8th May). War gratuities payments scheme announced. Man-power controls in regard to women and young persons relaxed. War-time press censorship abolished. War Cabinet dissolved. Right Hon. W. J. Jordan, P.C., reappointed High Commissioner for New Zealand in United Kingdom for a further term. War in Pacific ended, Japan formally surrenders (15th August). Electoral Amendment Act, providing for determination of electorates on the basis of adult suffrage and the abolition of the “country quota,” passed. New Zealand National Airways Act, providing for complete control of air transport as a national service, passed. South Island Main Trunk Railway opened, through rail connection from Picton to Bluff established.

  • 1946. Opening of first session of General Assembly of the United Nations in London. Mr. Justice Northcroft nominated as member of International Military Courts for trial of Far Eastern war criminals. First women Members of Legislative Council (two) appointed. New Zealand contingent of British Commonwealth Force to occupy Japan sailed from Italy. Empire Civil Aviation Conference held in Wellington. Air Service between New Zealand and J Force in Japan inaugurated by R.N.Z.A.F. Restrictions on consumption of electric power imposed in North Island. Remaining man-power controls covering freezing-works, coal-mining, sawmilling, and forestry lifted (June). Family benefit of 10s. per week made universal as from 1st April. Coupon rationing of motor-spirits revoked, supplies to be regulated by monthly quotas to oil companies. Pan-American World Airways resumed air service between San Francisco and New Zealand. Lieutenant-General Sir Bernard Freyberg, V.C., assumed office as Governor-General 17th June. Railways Department inaugurated inter-island air freight service. Imports of phosphate from Nauru and Ocean Islands resumed. Contracts for bulk purchase of wool by United Kingdom Government expired, sales by auction resumed. Legislation passed authorizing Government to acquire shares in company to be incorporated in New Zealand by the Anglo-Iranian Oil Co., Ltd. General election: Labour Government returned for fourth term. Air service from Auckland to North America planned by British Commonwealth Pacific Airlines, Ltd.

  • 1947. Trans-Tasman steamer “Wanganella” ran ashore on Barrett's Reef. New Zealand delegation led by Right Hon. W. Nash, P.C., attended conference at Canberra to establish a regional commission for South Pacific, £12,500,000 presented to United Kingdom Government by New Zealand. Rear-Admiral R. E. Byrd's Antarctic Expedition called at Wellington. Heavy cuts made in electric-power supply owing to water shortage. Railway services curtailed owing to shortage of coal caused by strike in Waikato mines. New Zealand delegation headed by Right Hon. W. Nash, P.C., attended International Conference on Trade and Employment at Geneva. Karapiro hydro-electric-power station completed. Local Government Commission appointed. Miss Mabel Howard appointed Minister of Health; first woman Cabinet Minister in New Zealand. Marketing of dairy-produce and fixation of guaranteed price taken over by Dairy Commission. Royal Commission to inquire into sheep-farming industry appointed. General increase in salaries and wages granted. Railway fares and freight charges increased, first rise since 1938. The Prime Minister, Right Hon. P. Fraser, P.C., C.H., attended a conference at Canberra of British Commonwealth Governments on Japanese peace treaty. Statute of Westminster adopted by New Zealand Parliament. New Zealand delegation headed by Right Hon. W. Nash, P.C., attended United Nations Conference on Trade and Employment at Havana. Disastrous fire in Christchurch, 41 persons perish. Marriage of Princess Elizabeth and Duke of Edinburgh. Prime Minister of Australia visited New Zealand. Clothing rationing abolished.

  • 1948. Release of Gaming Commission report. Tasman air service inquiry opened. Mahatma Gandhi assassinated in India. Railway accident near Blenheim with loss of six lives. Compulsory motor-spirits rationing reintroduced 1st March; schools resumed on that date also, after the long closure on account of the poliomyelitis epidemic. Royal tour of Australia and New Zealand announced. Australian naval units visit New Zealand. United Nations appeal for children launched. Tramping tragedy in Southern Alps involving death of three women. Announcement of withdrawal of New Zealand Army component of J Force during the period July to September. Mount Ngauruhoe erupts after twenty-two years' quiescence. Tea-rationing ended on 31st May. Australia – New Zealand Ministerial discussions on trade, defence, &c., held at Canberra. The longest regular air flight in the world maintained by the same aircraft and crew ended on 6th June, when the last flight was completed of the R.N.Z.A.F. Japan–New Zealand air courier service. Olympic Games opened at Wembley. Adjustment of exchange rate to parity with sterling as from the 20th August. Cyclone at Frankton entailed much damage and loss of three lives. Sugar-rationing ended on 27th August. New radio frequencies operated in New Zealand from beginning of September. The Prime Minister attended the Commonwealth Prime Ministers' Conference in London. Abolition of meat-rationing announced. National Airways Corporation's “Kaka” crashed on Mount Ruapehu with the loss of thirteen lives, New Zealand's worst air disaster. Birth of Prince Charles on 15th November. Discovery of notornis near Lake Te Anau. Postponement of Royal tour announced on account of His Majesty's illness. General Assembly of the United Nations ends session at Paris: adoption of Declaration of Human Rights during this session.

  • 1949. Arrival of the first four of six modern frigates for the Royal New Zealand Navy. The Government adopts new index covering a greater range of retail prices. Seventh Pacific Science Congress held at Auckland and Christchurch. Polls on the establishment of off-course betting and on an alteration in hotel hours held in March. New Zealand Government accords de facto recognition to the Government of Israel. Report of Commission of Inquiry into press complaints after crash of aircraft “Kaka” released. Visit or Right Hon. Anthony Eden, Deputy-Leader of the Opposition in the British Parliament. Protracted carpenters' dispute at Auckland. Lodestar airliner “Karoro” crashes near Waikanae with loss of 15 lives. Arrival of the British Minister of State for Colonial Affairs, Lord Listowel, for discussions with the New Zealand Government. Departure of New Zealand Rugby team for South African tour. National Art Gallery reopened. Court of Arbitration issues standard wage pronouncement increasing the rates of wages. The Prime Minister, Right Hon. P. Fraser, attends a Conference of Commonwealth Prime Ministers in London. Russia lifts the Berlin blockade. The first Territorial military training activity since the war commenced with general instruction courses for Territorial officers. Victoria University College commemorates the fiftieth anniversary of its founding. Commencement of Rimutaka railway tunnel deviation. Referendum on question of compulsory military training held and wered in the affirmative. Increased prices agreed upon with United Kingdom Government for purchases of New Zealand meat, butter, and cheese for the ensuing year. Report of Sheep Industry Commission released. Discussions held on development of Rongotai airport. British Government devalues sterling by approximately 30 per cent. from 1st September. New Zealand currency to remain at parity with sterling—i.e., also being devalued in terms of United States dollars. Maori electors given the right to vote in general licensing polls by the Licensing Amendment Act, 1949. Compulsory military training scheme for youths of eighteen years outlined in the Military Training Act, 1949. Off-course betting authorized in the Gaming Amendment Act, 1949. Butter ration increased to 8 oz. weekly in October. The twenty-eighth Parliament dissolved as from the 23rd November. General elections for Maori electorates on the 29th November and European electorates on the 30th November. The Labour Government in office since 1935, was defeated, the National Party obtaining 46 seats and the Labour Party 34 seats. The National Government, under the new Prime Minister, Hon. S. G. Holland, assumes office on the 13th December. Members of the incoming Cabinet announced on the 8th December.

  • 1950. Regular night crossings Sydney–Auckland by Tasman Empire Airways, Ltd. inaugurated. The Minister of External Affairs, Hon. F. Doidge, attends Colombo Conference. British Empire Games held at Auckland. Restrictions on cream sales lifted permanently. Conference of social security experts held in Wellington. Control of land sales, except of farm land, lifted. Price control removed on many items at various times throughout the year. Visit of Australian Naval Squadron. Sales tax removed from more labour-saving devices used in the home, and sterling funds and securities freed from control. First group of eighteen-year-olds enter camp under compulsory military training scheme. Government approves plan for development of Rongotai Airport to handle internal commercial air traffic. Control of maximum rates of remuneration abolished. New Zealand Legation at Moscow closed. Napier attains city status. Arrival of British Isles Rugby team. Radio broadcasting hours reduced to conserve electricity. Seven and one-half per cent. surcharge imposed on cargo freights from United Kingdom to Auckland. Prime Minister announces intention to abolish subsidies, estimated to save £12,000,000 in full year. Increases in suburban rail fares, and on certain classes of goods and, later, in road service passenger fares. Import Advisory Committee appointed. Control of advances by trading banks further relaxed. A £20,000,000 national development loan oversubscribed. Announcement by the Prime Minister of abolition of 33⅓ per cent. additional tax on unearned income. Abolition of petrol rationing from 1st June. Butter rationing abolished 4th June. Social security benefits raised by cost-of-living bonus and an interim wage order issued by Court of Arbitration providing for wage increases. New general price order authorizing adjustments consequent on withdrawal of subsidies, freight, and wage increases. Two New Zealand frigates depart for Korean waters. Increases in postal charges, telegram, and telephone rates announced. Government offers special combat force to the United Nations for service in Korea. Daughter born to Her Royal Highness Princess Elizabeth on 15th August. Terms of sale of State houses announced by Minister in Charge of State Advances Corporation. Commencement of 1950–51 wool sales results in record prices being paid, far exceeding those of the previous year. Legislative Council Abolition Act passed. Royal visit for 1952 announced. Waterside strike originating in Wellington extends to all ports, state of emergency proclaimed in New Zealand. Watersiders resume work. Royal Commission to inquire into waterfront industry. Government approval of off-course betting scheme designed by New Zealand Racing and Trotting Conferences. The Minister of Marketing, Hon. K. Holyoake, attends wool conference in London. The Minister of External Affairs, Hon. F. Doidge, represents New Zealand at Commonwealth discussions in London. Capital punishment for murder restored. Flying-boat service between Wellington and Sydney by Tasman Empire Airways, Ltd., commenced in October. Municipal elections held throughout New Zealand. Dairy-produce price negotiations with United Kingdom results in deadlock. Commonwealth Parliamentary Association Conference held in Wellington. Four world figures died during the year—namely, Field Marshal Smuts, George Bernard Shaw, King Gustav of Sweden, and Right Hon. Peter Fraser. Seven deaths occurred as result of R.N.Z.A.F. plane crash into Samoan lagoon. K Force sails from Wellington for Korea on 10th December and arrives there on 31st December. Prime Minister announces the gift of a bonus to certain classes of social security beneficiaries. More imports freed from licensing control. Nation-wide rail strike commenced on 23rd December and ended on 30th December. The Prime Minister, Right Hon. S. G. Holland, leaves to attend a conference of Commonwealth Prime Ministers. Loss of twenty-two lives when launch “Ranui” wrecked off Mount Maunganui.

(b) LIST OF ARTICLES ON SPECIAL SUBJECTS APPEARING IN PREVIOUS ISSUES OF THE YEAR-BOOK

Article onAppeared for the Last or Only Time in the Year-Book of
Year.Page.
Acclimatization1894430
Agriculture in New Zealand (by M. Murphy, F.L.S.)1912809
Alexander Turnbull Library1946914
“Brutomart,” mission of, at Akaroa in August, 184019271012
Building-stones1892194
Cancer in New Zealand—a statistical study1926889
Chatham Islands, the1900531
Cheviot estate, the1895264
Christchurch to West Coast, journey from1899548
Coal-deposits of New Zealand, the1900479
Cook Islands, the laws of1902573
Co-operative system of constructing public works1894234
Dairy farm survey1938429
Education system of New Zealand, the1925816
Effect of nativity order on infant mortality1925835
Exotic trees in Canterbury1904569
External trade of New Zealand, the1915858
Fauna, the194036
Forest-trees and the timber industry1899470
Frozen-meat trade, the1894311
Geology19407
Gold-dredging industry, the1899509
Government training-ship “Amokura”1913942
Hanmer thermal springs1905631
Hemp industry the1900477
H.M.S. “New Zealand”1913932
Kauri-gum1900489
Labour in New Zealand1894362
Lakes of New Zealand193211
Land and income tax assessment1913884
Laws of England and New Zealand, difference between1896281
Libraries1940928
Live-stock production—A review based on standard values and units1929990
Local government in New Zealand1925845
Maori, ancient, his amusements, games, &c.1907707
Maori, ancient, his clothing1908734
Maori, chant (tangi)1907711
Maori, colour-sense of the1905637
Maori, marriage customs1906638
Maori, mythology1900536
Maori, neolithic, the1902578
Maori, religion1901530
Maori, sociology1903641
Maori, songs1908739
Maori, topographical nomenclature of the1919936
Marlborough Sounds, the1901517
Midland railway, the1894386
Mineral waters and spas1940935
Mineral waters of New Zealand1913896
Moa, heir of the1899517
Mortality rates, New Zealand1927995
Mount Cook, a night on1900525
Mount Cook, district, the1899554
Mount Cook, its glaciers, and the Hermitage1898552
Mount Sefton, ascent of1900519
National Film Unit1946724
New Zealand contingents for South Africa1900449
New Zealand international exhibition1907701
Otago lakes, the1901523
Patents, designs, and trade-marks1893350
Plants of New Zealand, the194028
Pumice-stone deposits of New Zealand1900486
Railways in New Zealand, their history and progress1894377
Retail prices in New Zealand with special reference to the Consumers' Price Index1947–49998
Rivers of New Zealand19326
Ross Dependency1938900
Scenic wonderland, a1898565
Sheep, crossbreeding of1894308
Sheep-farming1894302
Shipping companies—  
  New Zealand Shipping Company1895392
  Shaw, Savill, and Albion Company1895393
  Union Steam Ship Company of New Zealand1895389
Southern Alps, the1894474
State farms1894243
Sydney pageant, the1901527
Terman intelligence tests in New Zealand schools1925823
Thermal-springs district1905614
Timber-trees of the world1903605
Tokaanu to Raetihi1899539
Totalizator, the1926838
Tourist attractions1940932
Tree-planting1906611
Tuhoeland1899546
Varieties of soil1892193
Wages and working-hours in New Zealand1919860
Waihi Gold-mining Company1897432
Waikato district and through to Wanganui1899520
Waiouru to Mangaonoho1899543
Wanganui River, up the, to Tokaanu1900509
Wattle-growing in the Auckland Provincial District1897430
Wellington–Manawatu railway, the1895381
Wellington municipal milk supply1925777
West Coast Sounds, the1894482
White Island, a day on1906637

(c) GENERAL BIBLIOGRAPHY

Until recently, successive issues of the Year-Book contained a comprehensive list of New Zealand works, but considerations of space now prohibit the publication of such a list.

The following list, compiled by Mr. C. R. H. Taylor, M.A., Dip.Jour. (Librarian of the Alexander Turnbull Library) includes the more notable works in their fields issued in 1950. Earlier works are listed in the 1947–49 issue of the Year-Book (pages 979–998) and in the 1932 issue.

BIBLIOGRAPHY AND LIBRARIES

HARRIS, Wm. J. Guide to New Zealand reference material and other sources of information, 2nd ed. Wellington. N.Z. Library Association, 1950.

NORTHERN ADVOCATE INDEX. (Quarterly.) Whangarei. Northern Publishing Co.

OLSSON, A. L. Index to New Zealand Periodicals. Wellington. N.Z. Library Association, 1950.

SOCIAL STUDIES

CAMPBELL, Richard M. The Public Service Commission in operation. Wellington. Institute of Public Administration, 1950.

MAPLES, E. Social security services in New Zealand. Oxford University Press, 1949.

N.Z. SOCIAL SECURITY DEPARTMENT. The growth and development of social security in New Zealand … (1898–1949). Wellington. Government Printer, 1950.

LAW

MERCANTILE GAZETTE OF N.Z. Digest of legal, commercial, and statistical information. Christchurch. Trade Auxiliary, 1950.

COMMUNICATION: PHILATELY

N.Z. PHILATELIC SOCIETY. Catalogue of New Zealand Stamps, Vol. 2, 1951.

LANGUAGE

HARAWIRE, Kahi Takimoana. Teach yourself Maori. Wellington. Reed, 1950.

WILLS, Webster H. Lessons in the Maori language. New Plymouth. Avery, 1950.

BOTANY

WALL, Arnold. Botanical names of the flora of New Zealand. Auckland. Whitcombe & Tombs, 1950.

ETHNOLOGY

ADKIN, G. Leslie. Horowhenua. Wellington. Polynesian Society, 1949.

BUCK, Peter H. The Coming of the Maori. Wellington. Maori Purposes Board, 1950.

DUFF, Roger S. Moa-hunter period of Maori culture. Wellington. Department of Internal Affairs, 1950.

KELLY, Leslie G. Tainui. Wellington. Polynesian Society, 1949.

PHILLIPPS, Wm. J. Maori carving. Wellington. Tombs, 1950.

PRICE, A. G. White settlers and native peoples. Melbourne. Georgian House, 1949. (2 chapters on Maori race.)

REED, A. H. & A. W. Maori place-names and their meanings. Wellington. Reed, 1950.

RUFF, Elsie. Jade of the Maori. London. Gemmological Association, 1950.

SUTHERLAND, I. L. G. Ngarimu Hui. Wellington. Polynesian Society, 1949.

SCIENCE: GENERAL

NEW ZEALAND ASTRONOMICAL HANDBOOK. (Annual.) Wellington. Royal Astronomical Society of New Zealand.

MEDICINE

BROWN, Charles Maurice Bevan. Sources of love and fear. Wellington. Reed, 1950.

POETRY

WOODHOUSE, Airini E. New Zealand farm and station verse, 1850–1950. Christchurch. Whitcombe & Tombs, 1950.

DESCRIPTION AND TRAVEL

REEVES, W. P. The Long White Cloud. Ao-tea-roa … with additional chapters by A. J. Harrop. London. Allen & Unwin, 1950.

BIOGRAPHY: PERSONAL

CARRINGTON, C. E. John Robert Godley of Canterbury. Christchurch. Whitcombe & Tombs, 1950.

HISTORY: GENERAL

MILLER, Harold G. New Zealand. London. Hutchinson, 1950.

HISTORY: SPECIAL

SINCLAIR, Keith. Maori land league. Auckland University College, 1950.

WATERS, S. D. Ordeal by sea. N.Z. Shipping Company in the Second World War 1939–45. London. N.Z. Shipping Company, 1949.

MACKAY, Joseph Angus. Historic Poverty Bay and the East Coast. Gisborne. The Author, 1949.

HISTORY: WAR

CLARE B. G. Early operations with Bomber Command. Wellington. War History Branch, Department of Internal Affairs, 1950.

FAIRCLOTH, N. W. New Zealanders in the Battle of Britain. Wellington. War History Branch, Department of Internal Affairs, 1950.

HALL, D. O. W. New Zealanders in South Africa, 1899–1902. Wellington. War History Branch, Department of Internal Affairs, 1949.

—– Prisoners of Germany. Wellington. War History Branch, Department of Internal Affairs, 1949.

KAY, R. L. Long range desert group in the Mediterranean. Wellington. War History Branch, Department of Internal Affairs, 1950.

LLEWELLYN, S. P. Journey towards Christmas. (Official History of the 1st Ammunition Company, 2nd N.Z.E.F.). Wellington. War History Branch, Department of Internal Affairs, 1949.

MCKINNEY, J. B. Wounded in battle. Wellington. War History Branch, Department of Internal Affairs, 1950.

N.Z. DEPARTMENT OF INTERNAL AFFAIRS. Documents relating to New Zealand's participation in the Second World War, 1939–45. Vol. I. Wellington. Government Printer, 1950.

THOMPSON, H. L. Aircraft against U-boat. Wellington. War History Branch, Department of Internal Affairs, 1950.

WATERS, S. D. Leander. Wellington. War History Branch, Department of Internal Affairs, 1950.

UNDERHILL, Rev. M. L., and others. New Zealand Chaplains in the Second World War. Wellington. War History Branch, Department of Internal Affairs, 1950.

COOK AND OTHER ISLANDS

SIMPSON, Frank A. Chatham Islands. Wellington, Reed, 1950.

THOMAS, Marjory C. J. Forgotten islands of the South Pacific by Rosaline Redwood (pseud.). Wellington. Reed, 1950. (Solander, Codfish, Ruapuke, Macquarie and Chatham Islands).

UNIVERSAL business directory for Pacific Islands. Auckland. Universal Business Directories, 1950.

(d) CENSUS OF PUBLIC LIBRARIES, 1949

A census of public libraries—i.e., libraries controlled or largely supported by local authorities—was taken for the year ended 31st March, 1949. The total number of libraries coming within this classification numbered 112, and returns were received from 104. Unfortunately, however a number of the libraries supplying information were unable to give all the details required on the questionnaire. Some of them had only part-time staffs, and consequently did not keep records in such detail as was found in the larger libraries. A good deal of very useful information has, however, been obtained and available details, including particulars of individual libraries, are being published in a separate volume.

The 1949 census of libraries was the first taken since 1938, but, on this occasion certain libraries previously included in the collection—viz., public libraries not under the control of a local-governing authority, libraries of professional societies, Government Departments, &c., and libraries of educational institutions—have been omitted.

The following summary gives details of the main items from the 1949 collection, with similar information for 1938, for public libraries under the control of local governing authorities. The comparison is not wholly accurate, although the number of libraries (104) was the same on each occasion, since there were a few unspecified cases where libraries were unable to supply certain of the information required. The figures, do however, give a general picture of progress over the period.

Number of volumes in stock—1938.1949.
  Juvenile94,359169,208
  Other1,117,1391,191,246
    Totals1,211,4981,360,454
Circulation—  
  National Library stock 115,073
  Juvenile555,8071,265,249
  Other4,207,2726,506,758
    Totals4,763,0797,887,080
Membership93,863250,152
Staff (including part-time workers)581583
Income—  
  Local authority grants, &c.£47,592£157,051
  Members' subscriptions£24,592£22,888
    Totals, including other income£92,217£228,933
Expenditure—  
  Salaries and wages£40,821£106,901
  Books, periodicals, newspapers£35,991£63,175
    Totals, including other expenditure£87,110£222,391

In addition to £22,888 received from members' subscriptions during 1948–49, £15,113 was received for “extras,” £2,930 for “reserves,” and £12,142 for “rentals for pay collection stock.”

(e) ECONOMIC POLICY AND NATIONAL INCOME

By J. V. T. BAKER, M.A., M.Com., D.P.A., Census and Statistics Department, Wellington, and H. G. LANG, B.A., B.Com., D.P.A., Marketing Advisory Council, Wellington.

From time to time provision has been made for the publication in the Year-Book of special articles on topics of wide public interest (see List of Special Articles on page 1028). This paper, presented by the authors as a thesis for the Diploma in Public Administration in Victoria University College, is of particular interest for the contribution it makes towards the better understanding of the nature of national income statistics and the purposes to be served by the compilation of such statistics. As is the case in previously published special articles, the Census and Statistics Department does not accept responsibility for the views expressed in the paper.

Contents 
 Page
Introduction (Including a Summary of the Main Conclusions)1034
Part I—A National Income Approach to Economic Policy1037
  1. National Income and High Activity Levels. 
  2. National Income and a Balanced Economy. 
  3. The Clash Between High Activity Levels and a Balanced Economy. 
Part II—A National Income Analysis for Employment Policy1043
  1. Full Employment and Inflationary Pressures. 
  2. The Problem of Bottlenecks. 
  3. Uses of National Income Analysis. 
  4. Summary. 
Part III—Measurement of Inflation and Investment1050
  1. Open and Latent Inflation. 
  2. Theoretical Background to Measurement. 
  3. Application to New Zealand. 
  4. Is New Zealand Over-investing? 
  5. Summary. 
Part IV—National Income as a Basis for Wages Policy1057
  1. Introductory. 
  2. Use of National Income Statistics to Determine Relative Income Movements. 
  3. Factory Production Statistics and Relative Income Movements. 
  4. Effects of Wage Increases on the Future Distribution of Income. 
  5. Effects of Wage Increases on Inflationary Pressures. 
  6. The Court of Arbitration as a Guardian of Real Wages. 
  7. The Court of Arbitration, Wages Policy, and National Income Shares. 
  8. Summary. 
Part V—National Income and Real Measures of National Activity1071
  1. Introduction. 
  2. Wages, Employment, and Production. 
  3. Wages as a Share of National Income. 
  4. National Income and Production Levels. 
  5. National Product. 
  6. A Volume of Production Index Comparable with the National Income Estimates. 
  7. National Product, Prices, and Volume of Production. 
  8. National Expenditure and Personal Consumption. 
  9. Government Expenditure. 
  10. Capital Expenditure. 
  11. Incomes, Products, and Expenditure. 

Introduction (Including a Summary of the Main Conclusions)

IN the formation and co-ordination of economic policy, the wide range of available statistical and other information is inadequate unless it can be pieced together and the gaps filled to give a comprehensive picture of the whole economy. National income statistics go a long way towards giving such a picture. In them we have, in money terms, a broad general view of the economy, which can be used as a background for more detailed examinations of particular problems.

In this paper we are interested in the use of national income estimates as an aid to economic policy formation. Our studies thus lead us to examine the various items included in the estimates to determine the economic significance of changes in their size and relationship to one another.

Our treatment in Part I emphasizes the necessity of being able to follow the relationships between the national income estimates and the physical things which are the actual objective of most economic policies. We have, on one hand, a collection of related money totals making up the national income estimates, and, on the other, a conglomeration of more or less unrelated economic influences on the lives of the people, such as their standards of living, opportunities for employment, and the like, which are physical rather than monetary. When we get down to the hard core, it is the physical things which really matter and which therefore form the background to economic policy. Money is merely a means to an end.

Part V gives a detailed analysis of the relationships between the money measures in the national income estimates and quantity measures of employment, production, consumption, and so on. The relationships developed in this Part are drawn on in the other Parts and can, we believe, provide useful guides in most applications of national income statistics to economic problems.

We also attach considerable value to the study of relationships of national income items, one to another, as an indication of economic conditions. More particularly, these interrelationships can throw light on inflationary pressures, over-investment, maldistribution of the use or reward of factors of production, and other signs of unbalance in the economy. National income estimates in their present form cannot give a final answer to such questions, as we show in our treatment of special problems in Parts II, III, and IV, but extensions to the estimates have been suggested there which could enable them to make a very valuable contribution.

The central proposition in Part I is that economic policies designed to alter quantity levels, such as the physical total of employment or production, may clash with policies designed to preserve a better balance in the economy. In other words, a policy of full employment, for example, may clash with a policy of price stability. National income estimates will focus attention on these clashes. In the same way, the estimates may reveal points of conflict between two policies both designed to secure a more balanced economy, or both aimed at raising quantities of real things, as is illustrated by the fact that an excess of exports over imports would aid a policy aimed at high employment levels, but would hinder one aimed at high current living standards.

Further, there have been sufficient practical examples to warrant the conclusion that, without new developments in economic policy, high activity levels are incompatible with a reasonably balanced economy, except that it may be possible to obtain a precarious balance by means of direct controls. Typical of this is the use of extensive price controls as a counterpart of a full employment policy.

Part II seeks information on the cause of the clash between high activity levels and a balanced economy. We find, for example, that the attempt to achieve full employment creates inflationary pressures and that these pressures generally continue once full employment has been achieved. Our investigations suggest that an important cause is the presence of bottlenecks.

A number of instances of bottlenecks are listed, but, summing up, they arise where a portion of an increase in effective demand (which in national income terminology is national expenditure) is channelled to industries which cannot or will not increase employment and production levels. If, then, the increased general level of effective demand is necessary to keep up employment and production, we are faced with the problem of how to equate it to productive capacity in those industries, because if we do not do so it will create shortages and inflationary pressures there. Looking further at this problem, we conclude that, while very high levels of employment and production cannot be achieved without stringent controls or substantial inflation, it may be possible to achieve moderately high levels and a balanced economy if the main bottlenecks can be pinpointed and eliminated. The latter portion of Part II is devoted to outlining a proposed national income analysis to assess the adequacy or otherwise of effective demand in each industry in relation to the productive capacity of the industry. By means of this industry by industry analysis it is possible to pinpoint bottlenecks and suggest remedies for them. Apart from the particular problem of bottlenecks, we are convinced that the frequent occurrence of severe shortages of labour and output in some industries at times when there are substantial pockets of unemployment has indicated the necessity for a more detailed analysis of the economy than can be given by a study of the national totals. This type of analysis is indispensable to a proper understanding of the economy at all times, but the presence of over-employment or the concentration of Government policy on high employment and production levels focuses attention on one of its uses by demonstrating labour and commodity shortages, and so bringing some of the bottlenecks into sharp relief. We believe that the analysis can indicate alternatives to direct controls. In particular, it can be of considerable value to a Government which desires to reduce unemployment with as few controls as possible, or, as in New Zealand at present, to reduce controls with as little unemployment as possible.

The question of controls arises again in Part III, where we deal with the use of the national income estimates in analyses of inflation. We distinguish between open and latent inflation. Pressures are the cause of both, but in open inflation these pressures are allowed to express themselves in higher prices, higher wages, an increased volume of money, and a redistribution of income in favour of profits and against fixed-income earners (including salary and wage earners). In latent inflation the pressures are kept in check through price, wage, credit, and other controls. These controls result in shortages of goods, queues, and rationing, but they permit a reasonably even distribution of goods and a stable distribution of incomes.

In developing policies to meet these inflationary pressure, measurement of them is of the utmost importance. We have discussed briefly two methods which can be used for measuring these pressures and have gone on to apply the measurement technique developed by United Nations to New Zealand figures. The contribution to inflationary pressures by the public sector is shown, but our national expenditure estimates are not yet available in sufficient detail to arrive at any final conclusions.

In our discussion of the question of whether New Zealand is at present over-investing, we have shown that a comparison of New Zealand capital formation with the capital formation of other countries in terms of national expenditure percentages is not valid unless adjustments are made for differences in the economies concerned. The adjustments would have to cover at least differences in population growth, in population density, and in productivity. These adjustments are difficult to make, and therefore another approach is needed.

We consider that the answer lies in a close analysis of real activity levels. Such an analysis will only be possible when the links from national money income to real activity levels, which we have discussed in Part V, are available. In view of the enormous waste of resources which could and often does result from a bad investment policy, it is of the greatest importance that national income data be developed as soon as possible to a point at which an over-all investment policy can be framed with a full knowledge of its implications.

In Part IV we deal with another vital present-day problem when we discuss the possibility of using national income statistics as a basis for wages policy. The Court of Arbitration is required, in making a general wage order, to take account, amongst other things, of the “relative movements in the incomes of different sections of the community.” It is possible to determine relative movements by reference to factory production and related production statistics or by means of the income distribution given in the national income estimates. The methods of applying national income estimates for this purpose are discussed at some length and we indicate what we consider to be the best method, having regard to the present stage of development of the New Zealand estimates.

Much of the discussion in Part IV centres round two questions:—

  1. Is the Court of Arbitration a suitable instrument for fixing general wage levels?

  2. Is it practicable and desirable for the Court to take relative income movements into account in making general wage orders?

In reply to the first question, let us say immediately that in the past, in the absence of a conscious wages policy, the Court has in fact been the most important link in determining general wage levels. The test of the reasonableness of these levels was their acceptability to the workers and the employers. If all were content and there were few strikes, the levels could be regarded as well fixed. Thus, the Court was primarily an instrument for industrial harmony. However, as Governments evolve conscious wages policies which are laid down in regulations for the Court to operate, the difficulty of the Court's task is increased, because there may be conflicts between the requirements of the policy and the relative strength and pressure of employers and workers. Nevertheless, provided clear criteria are given to the Court, it is undoubtedly more suited for implementing a wages policy than, say, a Government Department. However, the Court cannot be expected to define wages policy, for it lacks the power to control economic policy generally—a power which surely must be reserved to Government.

We now come to the second question: Is it practicable and desirable for the Court to take relative income movements into account in making general wage orders? We have shown that under existing conditions it would need a 15 per cent. wage increase to raise the 1949–50 share of salary and wage earners by only 1.7 per cent. to the average of the preceding eleven years. Thus, if income shares were taken into account, the fluctuations in wages would be violent. We are therefore of the opinion that the Court is unable-to maintain a given factor income distribution unless there is (a) an extensive system of price controls, or (b) a complete control over the aggregate money measure of effective demand. Our conclusion, thus, is that under existing conditions the clause requiring the Court to take income shares into account is impracticable and undesirable.

In the course of the paper we have pointed out some of the necessary developments of the national income estimates if they are to provide an adequate picture of the economy such as is required for an informed approach to economic policy formation.

Perhaps most urgent is a further study of the relationships discussed in Part V between the various items in the estimates and their physical or real counterparts. The actual evaluation of these relationships is of first importance in the practical application of the estimates as measures of national production, living standards, &c., and a further study of the method of developing them may well throw more light on such problems as inflationary pressures, investment levels, and wages policy.

The extension of the estimates as suggested in Part II to provide an indication of the adequacy of effective demand in each industry is also of first importance. A good start with this has already been made, but a better background is needed in New Zealand, and this will be available when national output estimates and social accounts are compiled. While these or similar developments will no doubt evolve in time out of the need to apply our present national income estimates to practical economic problems, we consider it of first importance that this information, which we regard as vital to any informed approach to economic policy, should be obtained without delay.

Part I—A National Income Approach to Economic Policy

1. NATIONAL INCOME AND HIGH ACTIVITY LEVELS

National income estimates go further than most other types of statistics in that they try, from the financial angle, to show the economy as a whole. They do not take the place of other statistical tabulations, but draw on them to provide a comprehensive picture of money movements, which can be used in conjunction with other statistical material to open up for investigation many aspects of the economy which are otherwise obscured for lack of factual information.

When national income estimates are applied as an aid to economic policy, it becomes apparent that some connecting link is necessary between the money measures in the estimates and the real or physical things with which much Government policy is concerned. Among the aims of various Governments we find, for example:—

  1. To maintain high levels of production.

  2. To raise real living standards.

  3. To ensure reasonable living standards for those with special needs or heavy responsibilities.

  4. To maintain reasonable incentives for effort.

  5. To influence the size and age grouping of the population.

  6. To ensure some measure of equity in the distribution of real incomes between different sectors of the community.

  7. To maintain full employment.

  8. To balance current consumption requirements against the weight of past debt commitments and of capital provisions for the future.

Obviously different Governments will emphasize different aims.

These aims are concerned almost exclusively with real things. Changes in money flows are of interest only in so far as they can be a means of changing real things. Never theless, policies designed to achieve any of these aims will influence the national income figures and, conversely, changes in national income figures and in their relationship one to another will alter the effectiveness of such policies.

It cannot be implied from this that Governments can do all that they want to do merely by influencing the size and interrelationships of national income figures. We do, however, suggest that some movements in the national income figures are compatible with the success of given policies, and others are not. Since it may be possible for Governments to influence national income movements, it is essential to know what movements are compatible with the achievement of Government aims, and what influences operate counter to them.

As a first stop it is advisable to be as well informed as possible on the relationships between various national income items and levels of economic activity. It is the quantity level of economic activity, rather than the number of New Zealand pounds in any money flow, which reflects itself in volumes of production, employment levels, living standards, and similar considerations which lie behind most Government policy. We could, in fact, relate activity levels to Government policy instead of bothering with national income at all, except that, without bringing in national income figures, our available measures of activity levels are quite inadequate and often misleading.

This side of the problem is dealt with in Part V, and it is obvious from the relationships we have developed there between national income items and real quantities that increases in national income will only increase quantity levels of consumption and investment to the extent that they are not cancelled out by a sympathetic fall in value of money. To take a particular item, we show that gross national expenditure can be regarded as the money equivalent of the volume of goods and services consumed, exported, or added to capital, less the volume of goods and services imported. But we know also that there are price relationships between different sectors of the money flow and the resulting volumes. Knowing these price relationships, we can trace the effects of increases in gross national expenditure on real things.

This is vitally important, because national expenditure is closely allied to effective demand, which has for some time been regarded as a possible ally in Government policy formation. There is one important difference: We usually regard national income figures as realized money flows, whereas effective demand is an expectation; Lord Keynes called it “the sum of expected consumption and expected investment.” National expenditure is the total of consumption and investment, so that it is obvious that a projection of national expenditure gives an estimate of effective demand.

It has generally been assumed that an increase in gross national expenditure will result in an increase in its real equivalent. It is, however, possible for prices to react so quickly as to make the real increase very small compared with the money increase; in fact, we must consider the possibility of the real counterpart decreasing in small corners of the economy where monopoly elements are strongly entrenched. This latter possibility will be apparent from a study of the theory of monopoly, but it is considered to be unlikely, except perhaps in periods of violent inflation, to affect any significant portion of the economy. It is, however, important to remember that the price increases which result from an increase in gross national expenditure will tend to spread over the whole range of national expenditure, though more slowly to some sectors than to others.

Putting this in another way, we can say that the effect of a given increase in gross national expenditure on real things will be offset to the extent that price levels rise. If the increase has the effect, immediately or after it has operated for a short time, of changing the channelling of national expenditure, we will have to note whether prices of some expenditure items rise more steeply than others, because, if that happens, the reducing effect of price increases will vary according to changes in direction of expenditure.

New, the significance of this type of analysis can be seen if we suppose that the Government is trying to assist a given policy by increasing gross national expenditure.

Suppose that the boost is to be applied in a given way and that the resulting re-channelling has been estimated. Then we can pick out those influences which will facilitate the Government's policy and those which will hinder it. Thus:—

Policy: Raising of activity levels—especially production and employment.

AidsHindrances
Higher personal consumption expenditure.Higher prices of personal consumption goods and services.
Higher expenditure on goods and services by Government non-trading Departments.Higher unit operating costs in non-trading Departments.
Higher expenditure on capital formation.Higher prices of durable capital goods.
Higher total money value of exports.Higher unit export prices.
Higher unit import prices.Higher total money value of imports.

Note especially the transposition of the items concerning imports. But note also that if the policy is different, some of the aids will become hindrances. Thus:—

Policy: Raising of current living standards.

AidsHindrances
Higher personal consumption expenditure.Higher prices of personal consumption goods and services.
Higher expenditure on goods and services by Government non-trading Departments.Higher unit operating costs in non-trading Departments.
Higher prices for durable capital goods.Higher expenditure on capital formation.
Higher unit export prices.Higher total money value of exports.
Higher total money value of imports.Higher unit import prices.

Thus by changing the direction of Government policy from higher activity levels to higher living standards we have transposed the items for capital formation, for exports, and for imports. The transposition of the external trade items may be a little hard to follow. They should be treated as a pair. The essence of the thing is that if volume of exports exceeds volume of imports, current activity levels rise because of the higher demand for domestically produced goods. If the volume of imports exceeds the volume of exports, current living standards rise because of the increased availability of goods for domestic consumption.

The generalization arising from this is that changes in Government policies will alter views as to what is desirable in the channelling of national expenditure items and in the movement of various parts of the price structure. It is important to take account of these things if Governments wish to achieve their policies by influencing national expenditure or the price structure.

Apart from the probability of clashes in the means of raising various activity levels, there is the possibility that the effort to raise levels will create unbalance. We will have to consider, for example, how far we can push up national expenditure without setting up inflationary pressures and distortions which will cancel out the real effects we are trying to produce or be a hindrance to the realization of some other policy aim. Hitherto we have been concerned with levels of activity, living standards, &c. We now move over to problems of balance.

2. NATIONAL INCOME AND A BALANCED ECONOMY

Balance in the economy may be sought for its own sake or because without it there can be no confidence about activity levels. Probably as good an example as any of balance being sought for both purposes can be found in New Zealand's stabilization policy of the war and immediate post-war period. There balance was sought for its own sake to ensure fairness of rewards so that none should profit unduly from the nation's total war effort. But more particularly balance was sought to ensure that nothing should interfere with the Government's control of the over-all level of the war effort. In this paper we are concerned with balances in both these contexts.

Unbalances in the economy may reveal themselves in a number of ways. Usually the appearance of one type of unbalance means that there are others which may or may not be made apparent by the available statistical material. We will look briefly at some of the more obvious types of unbalance before going on to discuss how they may create problems for Governments concerned with activity levels. For example:—

  1. Analysis of national expenditure may reveal inflationary or deflationary pressures arising out of lack of balance between non-consumption expenditure and savings. We discuss this in Part III.

  2. Analysis of national income may show an unsatisfactory distribution of income between factors of production—for example, the share going to workers may be smaller or larger than is considered desirable. This possibility is examined in Part IV.

  3. Allocations of national expenditure to capital formation may be out of line with probable future capital requirements. This is discussed in Part III.

  4. The value of net product in some industries may move out of line with that in other industries, having regard to the resources used in production. This is particularly likely to happen with export industries where exchanges are pegged, and is probably the strongest reason for primary industry stabilization accounts.

Even with the few types of unbalance listed above, it is obvious, as we point out in Parts III and IV, that the effort to obtain balance of one type may increase the unbalance of another type. Thus the effort to improve the distribution of income to factors may add to inflationary or deflationary pressures. Again, the effort to avoid inflationary pressures may result in the rate of capital formation being set too low for future requirements; and so on.

A Government which pursues a policy that requires a balanced economy may thus find that, if it achieves balance in one direction, it loses it in another. If it is concerned with levels of activity it may find, as we shall see below, that it cannot achieve a desired level without loss of balance. There are conflicts between balances and other balances, between levels and other levels, and between levels generally and balances generally.

This is especially so where, as with New Zealand, external trade is an important part of the economy. When the external trade is dependent almost entirely on the sale of the notoriously unstably priced farm products, it is absolutely essential to look at balances and levels with one eye on overseas prices for farm products. The question that needs answering is: How far can external trade effects be cushioned by stabilization funds, long-term contracts, &c., and how far is it necessary to keep other sections of national income in line? This could well be the subject of further special study.

3. THE CLASH BETWEEN HIGH ACTIVITY LEVELS AND A BALANCED ECONOMY

We will now lock briefly at some of the conflicts between levels and balances.

In our present state of political and economic development the main emphasis, so far as levels are concerned, is on employment. It finds expression in measures to combat excessive unemployment or severe labour shortages and in the overriding idea of a full employment policy which attempts to set some ideal level of employment and unemployment.

So far as balances are concerned, the main emphasis is on inflationary and deflationary tendencies, and is expressed by stabilization policies, restriction of use of Reserve Bank credit, and so on.

We can select the conflict between the target employment levels of full employment and the balances necessary to prevent severe inflationary or deflationary tendencies as an example of the conflicts between levels and balances generally.

The following quotation from the United Nations publication, “National and International Measures for Full Employment,” illustrates the connection between levels and balances. The statement is really an elaboration of the development in Keynes' “General Theory” of the relationship between effective demand, employment, and prices, which we will refer to again later:—

“The objective of full employment can be maintained only if balance is achieved at levels at which effective demand is adequate to provide full employment. If balance is achieved at less than full employment, a full employment policy requires an unbalanced movement which expands aggregate effective demand, and continues to expand it until full employment is reached, when a balance must again be established between the several factors, in order to maintain employment at the full employment level. The condition necessary for balance is: that the sum of factors having a plus effect on expenditure—private investment, Government expenditures, and exports—shall equal the sum of the minus factors—savings decisions, taxes, and imports.”

The balancing factors are discussed in Part III, but we may note here that if the full employment objective is set too high it may be extremely difficult to obtain a balance at that level by any acceptable means. If, as in New Zealand, full or over full employment has been accompanied by unbalance which has become difficult to control, it may well be impossible to improve the balance without some fairly substantial retreat from the high employment levels. This may still be true in the long-run, even if the Government is prepared to exercise a substantial measure of price and transaction control, because of the banking-up of inflationary and other pressures behind such types of control. We are concerned with this problem in Part II.

The problem stated here is not merely an employment problem. It seems that if any activity level is altered, it will be found that there are levels at which balance is almost automatic, higher levels at, which balance can be obtained with some difficulty by manipulation, and still higher levels at which balance is almost impossible to maintain.

While we would not preclude the possibility of obtaining balance at full employment levels, and while in Part II we suggest a new approach which may open the way for fresh achievements, it should be observed that the setting of an employment target is not necessarily the best way of achieving high activity levels. It might, for example, be easier to maintain balance if the aim were very high levels of production, to be obtained by the most expedient allocation of the nation's resources, and high enough to provide reason the living standards for any employed should this allocation not absorb the entire labour force. This aim of very high production might open up at least one more channel for obtaining balance, by substitution of other factors for labour, or vice versa. The characteristic of a full employment policy is its high degree of rigidity because of the poor mobility of labour either between industries or between districts. The structure and location of industry tend to be dictated by the industrial training and domicile of the labour force, with the result that, in spite of placement and retraining facilities, there is often insufficient flexibility to obtain the best use of other resources or to aid in obtaining a balanced economy.

From the practical viewpoint of administration, the difference would be that for a production target the boosting effects would be channelled as far as possible into industries which would return a large increase in production for a given amount of boosting, whereas for an employment target they would be channelled into those likely to respond with a large increase in employment. If the Government's policy were to be successful, it is apparent that a considerable redistribution of resources might result from such a change in emphasis.

If we did move over to a production target, it would have to be at very high levels; sufficient to keep unemployment down for its own sake, and sufficient to maintain satisfactory living standards for the unemployed. At these very high levels, difficulties of balance might be considerable, though we think not so great as with a full employment target.

Not only will the attempt to secure high levels of activity lead to disconcerting unbalances in the economy; the unbalances may easily have so serious an effect on prices and other relationships between money flows and their physical counterparts as to make it virtually impossible to secure the desired levels by influencing money flows. This can best be illustrated by reference to effective demand, which we have already shown to be closely allied to national expenditure.

Changes in effective demand, in so far as they are not cancelled out by price changes, will alter levels of production, employment, living standards, and most other activity levels. Though they may not all be affected in exactly the same way, it will be sufficient for our illustration if we trace relationships between effective demand and production and employment levels.

A brief summary of recent thought on this question is given in the following extract from the United Nations publication, “National and International Measures for Full Employment” (p. 21):—

“At a time when there are unemployed resources of all kinds available at prevailing prices, an increase in effective demand expressed in money will normally result in a corresponding increase of production and employment. On the other hand, if some resources are scarce, or immobile in varying degrees, an increase in money demand will result partly in an increase in output and employment, and partly in an increase of prices. The same result would follow, even in the absence of any such physical limitation on the increase of output, if the sellers of goods or productive services held out for higher prices in response to an increase in demand.”

There has been but little advance from the earlier Keynesian treatment. The “General Theory,” in dealing with the theory of prices, makes simplifying assumptions and arrives at the conclusion that if effective demand changes in the same proportion as the quantity of money, the quantity theory of money can be enunciated as follows:—

“So long as there is unemployment, employment will change in the same proportion as the quantity of money; and when there is full employment, prices will change in the same proportion as the quantity of money.”

The simplifications are then dismissed as unreal, and when various complications are taken into account—for example, the possibility of change in the velocity of money circulation—the conclusion is that effective demand will not change in proportion to the quantity of money, and that the increase in effective demand will, generally speaking, spend itself partly in increasing the quantity of employment and partly in raising the level of prices. Thus, instead of constant prices in conditions of unemployment, and of prices rising in proportion to the quantity of money in conditions of full employment, we have in fact a condition of prices rising gradually as employment increases.

There are two conclusions from this which affect Government policy action designed to alter activity levels. The first is that the aim should be to alter effective demand rather than the quantity of money; the second is that the problem of balances in the economy needs to be tackled in conjunction with that of levels. This interrelationship between balances and levels makes national income statistics indispensable to successful policy formation, because those statistics are the only known medium by which we can bring indications of changes in levels and balances into the same comprehensive picture.

While admitting that the effective demand will not necessarily vary in proportion to changes in the quantity of money, it must be conceded that Governments whose control through central banks, &c., enables them to alter the volume of money are in a position to exercise a powerful influence over effective demand. If a Government's control over the volume of money is allied with a willingness to gear fiscal measures, developmental work, &c., into its monetary policy, its influence over effective demand is considerably strengthened.

If such a Government concerned itself only with the money measure of effective demand and was determined to move it up or down to some given level irrespective of price changes or of losses of balance, there is no doubt that it could do so. In practice, of course, a Government is not concerned so much with the size of the money measure of effective demand as with the volume of goods and services which corresponds to it. Activity levels are changed by increasing real measures of demand for goods and services, not by changing money measures. The Government must therefore take account of the price relationships which connect money measures to real measures of effective demand (see page 1089).

While it is thus obvious that considerations of price changes should enter into our reasoning about effective demand, it might be supposed that, even if this precaution were not taken, the position could be met by pushing effective demand a little further than would otherwise be required to secure the desired level of activity.

This reasoning may be all right for a situation where there is a considerable proportion of unemployed resources, but it appears that once the proportion is reduced to below a certain level, the attempt to raise activity levels further creates serious unbalances in the economy. Unless special corrective measures are taken, these unbalances may affect price relationships so seriously as to make it difficult to take the real measure of effective demand beyond a certain point, irrespective of what may be done with the money measure of effective demand. But this point is, in our present economic set-up, well below acceptable levels for employment and economic activity generally.

Practical politics have offered two answers to this problem. The first is an attempt to contain the unbalancing tendencies by price, transaction, and other controls. The second is a withdrawal of activity targets from what is desirable but difficult, to what is less desirable and less difficult. The second of these is a straight-out admission of defeat. The first is hampered by its proved administrative impracticability, except on an inadequate scale, and by the political effects which result from the irksome nature of this type of control.

In any event, price and transaction controls do not really improve the balance of the economic structure. They merely prop it up, or perhaps we should say stake it down, at one or two points where the unbalance is most obvious. Unless the underlying causes are removed, the structure seems to respond by loaning more and more heavily on the props. There is a banking up of unbalancing tendencies, as we have illustrated in the case of inflationary pressures in Part III. This banking-up process is going on even though to outward appearances both balances and levels may seem satisfactory. Unbalances are suppressed, for example, in suppressed inflation. But in the meantime the controls are becoming more and more difficult to dispense with and more and more irksome.

Thus there is no tried practical solution to the conflict of levels and balances. We believe that national income statistics offer the medium through which the conflict can be reduced. They can at least help, as we suggest in Part II, in getting given freedoms with less unemployment or a given employment level with loss control.

Part II—A National Income Analysis for Employment Policy

1. FULL EMPLOYMENT AND INFLATIONARY PRESSURES

In our general discussion of a national income approach to economic policy we pointed out that modern Governments which concern themselves with national living standards, levels of activity, &c., and at the same time expect to preserve a well-balanced national economy, may well be faced with a clash between levels and balances. It is, for example, quite commonly believed that the high activity levels involved in full employment are always accompanied by inflation, or, conversely, that a country cannot have a balanced economy without having also a substantial pool of unemployment. We are extremely reluctant to accept this view, but must admit that past experience appears to justify it. However, we do not accept past experience as indicating that nothing can be done to reduce this clash between levels and balances.

The analysis of the problems of a full employment policy which is outlined in this Part shows that the attempt to achieve full employment creates inflationary pressures and these pressures generally continue once full employment has been achieved. The inflationary pressures can be ignored or they can be bottled up by controls as they arise. Either action may defeat the full employment policy.

To ignore inflationary pressures, under conditions which are continuously creating them, means the abandonment of the economy to an upward price-wage spiral. Such a spiral will cause distress to less fortunate groups and will make high employment levels difficult or impossible to reach. Changes in effective demand are the only means by which actions aimed at raising employment levels can have a real effect on the economy. The tool of effective demand breaks in the Government's hands if every increase in its money value is countered by extensive price rises.

On the other hand, the bottling-up of inflationary pressures by means of transaction and price controls leads to suppressed inflation, which we discuss in Part III. This suppressed inflation, if inflationary pressures continue to bank up behind it, will ultimately become extremely difficult to control. The result may be a voluntary retreat from high employment levels in order to relief inflationary pressures, or an involuntary one as the result of a loss of control followed by a price-wage spiral.

Thus, detailed transaction and price controls do not offer any satisfactory way of maintaining full employment. They may, as in New Zealand, enable full employment to be achieved at the cost of suppressed inflation. But in such circumstances the mere preservation of full employment causes inflationary pressures to bank up behind the existing suppressed inflation. Our discussions in Part III will illustrate this more clearly.

Nor do we believe it to be in general a satisfactory solution to achieve full employment with the aid of transaction and price controls and then to release controls as a sort of safety valve through which banked up inflationary pressures can escape. The reaction to release of controls under full employment conditions is more immediate and startling than the reaction to lack of control in the upward movement. The condition which gives rise to the pressures must be altered or the removal of controls will inevitably result in a price-wage spiral.

This is then an excellent example of the unsolved problem arising out of the clash between levels and balances. The need for a solution is emphasized by the irksome nature of the price and transaction controls which have in the past been used to obtain some semblance of balance under full employment conditions.

We discuss in Parts III and IV the effectiveness of known types of price and wage control. If these types of control continue to be a necessary counterpart of a full employment policy, any measure which can make them more effective without their becoming more extensive, or less extensive without reducing their effectiveness, is a move in the right direction.

We are, however, firmly convinced that the real solution will be found in more extensive studies of the nature of the clash between levels and balances in the economy. National income statistics offer a medium through which the interrelationships between levels and balances can be investigated. Let us see how far they can help us with this problem.

We open our study of the clash between levels and balances with the following brief summary:—

  1. A Government, given control over the central bank and a willingness to adopt a supporting fiscal policy, can change the money measure of effective demand to almost any extent it wishes, provided it is not concerned with keeping a well-balanced economy.

  2. But it is really concerned with the physical measure of effective demand, and that depends on price movements.

  3. As activity levels are raised, successive increases in effective demand will set up increasingly serious reactions in price changes and unbalances generally.

  4. If unchecked, these reactions will make it difficult, maybe impossible, to take the physical measure of effective demand beyond a certain point.

  5. But this point may be below the desired level for economic activity.

Here we have really started at the wrong end in relation to the current New Zealand problem, which is (1) to get rid of the controls which, in the upward movement, checked the reactions sufficiently to make full employment possible, and (2) to find some means by which the inflationary and other pressures which are banked up behind the controls can dissipate themselves as harmlessly as possible. We may solve both problems if we look further at what gave rise to the pressures and the controls.

The position in New Zealand is that, with the present structure of the economy, full employment takes economic activity levels to a point where the economy is so out of balance that extensive controls are necessary to preserve economic order.

To see why this is so, let us try in general terms to relate changes in effective demand to employment levels in New Zealand (the percentages used here are chosen arbitrarily for purposes of illustration):—

  1. With large-scale unemployment, increases in effective demand result in almost proportionate increases in production and employment. There are some price increases, but they are not sufficient to dampen seriously the effect of the increasing effective demand on activity levels. This would almost certainly be the position in New Zealand if unemployment stood at, say, 10 per cent.

  2. As unemployment is reduced, the increases in activity levels caused by successive increases in effective demand become less and less significant and the increases in price levels become more and more significant. In New Zealand the price increases might begin to have a really serious effect on the usefulness of effective demand as an influence on activity levels at about 5 per cent. unemployment.

  3. But New Zealand is probably unwilling to accept unemployment higher than, say, 2 per cent. at the most. (Sir William Beveridge set the standard for full employment in England at about 3 per cent.)

  4. There is then a gap between 5 per cent. unemployment and 2 per cent. unemployment which cannot be bridged by increases in effective demand unless the inflationary effects of further increases in effective demand are checked.

It is then advisable for us to look further at pressures arising in the gap between 5 per cent. unemployed and 2 per cent. unemployed. Before we do so we should observe that, if balance can be obtained without controls at 2 per cent. unemployed, then the controls can be dropped without increasing unemployment, even though they may have been necessary to reach that point. Whether balance is possible depends on the things, we are going to discuss below, and on the relative importance of the Government and private sectors of the economy.

2. THE PROBLEM OF BOTTLENECKS

What tends to defeat us when we reach moderately low levels of unemployment is not lack of effective demand, but rising prices, which counter the money rise in effective demand. How is it then, that the increase in effective demand tends to raise prices unduly when there is still a substantial measure of unemployment which could be mopped up before there need be excessive competition for use of labour?

It is because the unemployment is not in the same industries, occupations, and locations as the increase in effective demand.

We are up against a new problem once the price structure starts to respond too readily to changes in effective demand. We have now to take just as much interest in the distribution over industry of effective demand as we do in the money measure of any increase we can bring about. To see how this lack of alignment between unemployment and the increase in effective demand comes about, let us inquire into the nature of the practical problems which experience has shown us will arise at high employment levels.

Even when we try to reduce unemployment from, say, 5 per cent. to 4 per cent. of the labour force, we are going to run up against difficult pockets. Those pockets may arise in many ways, for example:—

  1. If a particular industry suffers from a bottleneck because of lack of plant or materials or for some other reason which cannot be altered by increasing the revenue coming to that industry, any increase in effective demand which goes to that industry will have no effect on production or employment, but will expend itself entirely in raising prices.

  2. If the working population of a particular district has outrun the industrial opportunities and there are obstacles to the setting-up of new industries in the district and a reluctance of workers to transfer to now areas, it will require a very substantial rise in effective demand to bring those workers into employment.

  3. If prices of the products of some industries are already controlled or are fixed on world markets, and if production in those industries is limited by the cost of obtaining extra labour, then a general increase in effective demand will, by increasing labour costs indirectly, tend to decrease employment in those industries rather than increase it.

  4. If wages are fixed too high in some industries, having regard to the prices which they can obtain for their products, and if workers in those industries are strongly enough placed to be able to hold their margin of advantage over other workers as general wage levels rise, then the increase in effective demand will not increase employment and production in those industries.

  5. If pressure for increasing wages to meet rising prices comes mostly from unskilled workers, with the result that there is a continuing tendency for the reduction of margins for skill, it will be impossible to increase the employment of unskilled workers by increasing effective demand without simultaneously increasing the profitability of employing the skilled workers. In other words, increasing employment is obtained at the expense of increasing the proportion of the national income going to the employers, and this, of course, operates against the employment effects of the increase in effective demand.*

  6. Incapacitated or sub-normal workers will be affected in the same way as unskilled workers unless there is special provision for the minimum-wage requirements to be waived in their case. Such arrangements do exist in New Zealand.

The above are all examples of bottlenecks of varying narrowness. The first case is an extreme one, where increases in effective demand cannot change production or employment levels at all. The result is, however, similar in all cases. To the extent that an increase in effective demand for the products of a particular industry cannot increase production and employment in that industry, it will be taken out in higher prices.

* In event of this being a main cause of the existing low level of the worker's share of the New Zealand national income, it cannot be corrected without either unemployment or an increase in the margins for skill.

The difficulty from the viewpoint of employment and production policy is that, if we step up aggregate effective demand, some of the increase will go to these industries. There is nothing to lead us to suppose that even the industry covered by (a) which is completely bottlenecked, will get any less share than it would if it were free to expand. That depends on the elasticity of demand for its products.

Now, the bottlenecks cause the earlier onset of our difficulty, which is that increases in aggregate effective demand tend to be taken out too much in rising prices and too little in increased employment. If, therefore, we can find a way to channel effective demand away from bottlenecked industries, we may be able to get bettor results. The effect would be to lower the level of unemployment at which changes in aggregate effective demand become unsuitable as a means of changing employment levels. Alternatively, to face up to New Zealand's current problem, we may by this means be able to reduce the need for controls without any drastic increase in unemployment.

Before we push this idea further, let us see if we are likely to do violence to consumer preferences. If rising prices in an industry can be expected to lead to greater efforts to overcome any bottlenecks which hamper its expansion, it may be supposed that a disservice would be done to consumers by taking stops to channel off purchasing-power. However, it must be remembered that the presence of the bottleneck is often indicative of a monopoly element. If the monopoly element is being exploited by either employers or workers, the rise in prices might bring no ultimate benefit to consumers. Thus, while we would emphasize the necessity to keep consumer preferences to the fore, there is likely to be a considerable number of cases where the suggested rechannelling of effective demand would do no violence to consumer preferences. In the interests of reconciling a balanced economy with high activity levels and reduced controls, we will therefore discuss ways in which offending industries can be pinpointed.

3. USES OF NATIONAL INCOME ANALYSIS

There is one very simple way of finding out which are the offending industries. Under existing New Zealand conditions we could remove a wide range of controls. Under unemployment conditions we could keep on raising effective demand without introducing new controls. In both cases the offending industries would be those in which prices changed rapidly and employment was relatively unaffected. There is only one thing wrong with this method; the timing is bad; and timing is of prime importance in the administration of economic policy. The corrective measures shown to be necessary by an experiment of this sort would be hampered by the need to correct further difficulties caused by the experiment. One does not embark lightly on an experiment involving a national economy.

National income analysis offers an alternative solution. If we can split up national product on a fairly finely divided industry basis, and use it to forecast the value of the products of each industry, we can compare these figures industry by industry against a corresponding forecast of the amount spent on the products of each industry, based on national expenditure. By this means we arrive at a measure of the adequacy or otherwise of expected demand in each industry. In other words, we can see how well available purchasing-power is likely to line up with the possibilities of industrial expansion in each industry.

Apart from the national product figures, our subdivided forecast of national product can draw on employment, wage, production, &c., and similar trends. If it is intended to alter employment levels by means of changes in effective demand, the planned aggregate change in employment can be given effect to in the forecast; but in carrying this to individual industries, account must be taken of post movements in employment and of known restrictions on employment changes in particular industries. It is quite inadequate, for example, to split the increase pro rata on the basis of existing employment levels.

On the expenditure side, the proposed changes in effective demand should be reflected in the national expenditure estimates, The industry-by-industry split of future national expenditure is then made on the basis of the proportionate split of national expenditure in past years, taking into account, as far as available information will permit, any changes in distribution of expenditure which can be expected to result from changes in real incomes.

The industries which we have referred to as having bottlenecks will now stand out among those where effective demand is greater than the projected value of product. These are the industries in which increases in effective demand lead to price increases rather than to employment and production increases. If we are trying to move away from price and transaction controls, they are the industries where prices will rise most steeply if controls are removed.

On the other hand, there will be other industries where effective demand is loss than the projected value of product. Here increases in effective demand may load to higher employment and production levels rather than to higher prices. In the current New Zealand situation, the removal of controls would have comparatively little effect on prices in most of those industries.

Let us see what is the significance of this if the Government is trying to increase activity levels. We have carried into our projections of effective demand—that is, of national expenditure—the aggregate expenditure increases we intend to bring about. We have carried into our projections of value of product—that is, of national product—the aggregate increases in activity levels which we hope to achieve as a result of our expenditure changes. We have, however, put the expenditure changes into the industries where, taking account of past experience of consumers' and investors' actions, we can expect them to go. And we have put the changes in activity levels into the industries where, taking account of past employment experience and the availability of suitable resources, we can expect them to occur. The two lots of changes may tally in total, but they will not tally for each individual industry.

Now, we know that if we have made the correct adjustments for taxation, subsidies, use of materials, &c. the effluxion of time will bring our estimates of effective demand and value of product into line for every industry. This must be so because, once we move into the past, effective demand expresses what is paid to an industry and value of product expresses what is received by an industry. It might be thought, then, that the Government could afford to lot things take their course, because those industries where effective demand exceeds value of product will average out with those where the reverse is the case, and with the effluxion of time all will come into line.

This would be all right if identity was achieved by movement of effective demand from those industries where it exceeds value of product to those where it does not. This in general, does not happen. The effective demand lies approximately as it is projected. In those industries where it exceeds expected value of product, identity is usually achieved by a substantial price increase and possibly a slightly higher employment increase than was expected. In the other industries the increase in effective demand is inadequate to bring about the expected increase in value of product.

The net result is that the increase in aggregate effective demand gives rise to a much lower employment and production increase than was anticipated. If, as may well happen, the price increases in the difficult industries result in sympathetic price movements in other industries, the upward movement in effective demand will be taken up largely in price increases and very little in employment increases. We are back at our old position where we decided that the attempt to attain too high levels would be defeated by the clash between levels and balances. We are, however, one step nearer a solution because if the Government decides not to let things take their course, we can now give at some indication of the direction in which corrective action will be most effective.

Furthermore, by a development from this approach, we can pick out the industries which are the root of our troubles, and also judge the effect on them of various types of Government policy action.

Let us look again at our suggested projections of value of product and of effective demand. If we try to project effective demand in a pure form, we will probably develop reconciliations for each industry which do not fit in with available statistical material, which involve relationships that are not easily projected, and which are not available for Government policy formation. An attempt to develop reconciliations which avoid those pitfalls and at the same time take account of the essential principles outlined above was made in “Employment and the National Income.”*

* Paper prepared for the Labour and Employment Department by J. V. T. Baker in March, 1950.

In that paper the suggested reconciliation starts on the production wide with a projection of the number of employees, based on employment statistics, but taking account in aggregate of planned changes through selected immigration, reduction of unemployment, and so on. The counterpart of this in national income statistics is the national wages bill, which is projected forward on the basis of wages trends and wages policy, if any. Adjustments are made for the number of working proprietors and their equivalent salary or wage earnings.

With these employment figures as a background, the national income item “net national product at factor cost” is then projected and subdivided to show the net product expected in each industry. To do this it is practicable to use any of the relationships between net product and the number engaged, or the salary and wage payout, which are suggested in Part V. As is pointed out there, the approach from employment will not open up the entire range of net product, and it is advisable to use the other approaches for some portions of industry. The total for all industries must equal the projection of net national product at factor cost.

In this process account is taken automatically of price trends, but not of price changes arising out of any proposed new attempts to alter effective demand.

To secure comparability with the demand figures, which for convenience are taken gross, depreciation allowances, the costs of materials and services purchased from other industries for use in production, and the selling-expenses incurred by producers are added to the net product for each industry. This gives a figure for gross revenue to the industry which is regarded as the gross drive needed to secure the projected amount of employment in each industry.

This gross drive is here related to employment, but if Government policy were related to production or some other activity level, the development would be similar, except that it would open with a measure of production, &c., instead of a measure of employment.

The next step is to see how far it can be expected that this drive will be met from foreseeable expenditure. The starting point is “gross national expenditure.” In developing national expenditure items, account is taken in aggregate of any Government intention to change effective demand, but the distribution of this change to expenditure items and to individual industries depends on the spending habits of consumers, capital formers, and so on.

In the paper under consideration the gross drive expected to he available for each industry is made up of—

  1. Personal consumption expenditure on its products.

  2. Subsidy payments to the industry.

  3. Proceeds of sales of materials for use in production by other industries.

  4. Proceeds of sales of services for use in production by other industries.

  5. Proceeds of sales of goods or services for use in fixed capital preservation or formation.

  6. Proceeds of exports of products of the industry.

  7. Proceeds of sales of goods which are used to increase stocks.

    The total of these items is offset by—

  8. Wholesale and retail gross profit margins.

  9. Other margins between market and factory-door prices (excluding those incurred by the industry being analysed).

  10. Imports of products of similar overseas industries.

  11. Indirect taxation on the products of the industry.

    The net figure then gives the net driving force expected to be available to the industry. It has to cover—

  12. The value of the net product of the industry.

  13. Depreciation allowances necessary to keep its capital intact.

  14. The cost of the services supplied to it by other industries and used in production.

  15. The cost of materials supplied to it by other industries and used in production.

  16. Any selling or distributing expenses it incurs before selling its products.

The total of these items gives the driving force needed to keep a given number of persons employed (or to provide a given volume of production, if that was the starting point). It is compared against the net driving force expected to be available.

The items used here are chosen so that as many of them as possible will reconcile, in total for all industries, to national income items. The arrangement is such as will permit ready application of frequently used accounting, costing, and other relationships which are sufficiently stable to provide a basis for projection.

The discrepancy between the net driving force available and the driving force needed as revealed for each industry by this analysis, is interpreted in a similar way to that suggested above for interpreting the difference between effective demand and value of product.

The discovery of each discrepancy can be followed by analysis to show how it is likely to be met in that particular industry if the Government takes no further action. Then, if the Government finds that way of meeting the discrepancy does not lit in with its policy, it can decide which of the items, included in the drive needed or in the net drive, it is politically expedient to influence to bring about some more acceptable solution.

Obviously a very wide range of possible action is open. All that is done by the analysis we have outlined is to show where action is needed and what types of action are likely to bring about the desired results. For example, a serious excess of driving force for a particular industry could be cased—

  1. If it is a subsidized industry by reduction of subsidy payments.

  2. By allowing freer access to imports of in overseas products.

  3. By increasing indirect taxation on the products of the industry.

  4. By assisting the industry step up level of production—e.g., by selected immigration of suitable workers, by easing importation of raw materials, or generally by removing, whatever prevents production from rising freely.

Only a few of the more obvious possible actions have been selected here, but it is apparent that in different cases the Government might be able to influence any of the items (a) to (p) in our analysis on page 1048.

It is also apparent that changes in some of these items will raise market prices more than others, some will raise wages more than others, some will affect external trade more than others, and so on. Thus, those who decide the direction of corrective action will need to take account of a wide range of Government economic policy. There is, however, no new difficulty here. The actions to be taken would be similar to those already widely advocated for application to the economy as a whole. Such actions have in any event to try to take account of all the ramifications of Government policy. What we have suggested is that, unless they are applied with a knowledge of their effects on particular industries, the clash between levels and balances in the economy will probably defeat them.

4. SUMMARY

The attempt to achieve full employment creates inflationary pressures, and these pressures generally continue once full employment has been achieved. In the same way, any other policy which involves high activity levels will make it difficult to maintain a balanced economy.

To deal with this loss of balance a Government can alter the layout of its own sector of the economy—for example, the relationship of consumption to non-consumption payment:; and it can back this up with controls over the private sector. But if inflationary and other pressures continue to bank up, these methods will break down, either because they become inadequate to cope with the situation, or because they become too irksome to survive under a parliamentary system of government.

Some contribution may be made to a solution of this problem by a study of the nature and effectiveness of controls over prices, wages, &c., but our thesis is that the only lasting solution will come from a study of the causes of the clash between high activity levels and a balanced economy.

This is appropriately a national income problem. In our analysis we have put “gross national expenditure” into a central position because of its relationship to effective demand, and because it is the distribution over industry of effective demand, which lies at the root of our trouble. Increases in effective demand will tend to spread to all industries, including those in which activity levels cannot expand for various reasons, such as lack of plant or materials, insufficient skilled labour, monopoly influences, and so on. These are the industries where price rises and unbalancing movements generally will start.

The position is, then, that a high level of effective demand is necessary for high activity levels, but high effective demand means that excessive purchasing-power goes to some industries in which possibilities of expansion are restricted. Excessive purchasing-power leads to inflation and unbalance generally. We need to seek it out and do something about it if we are to achieve balance at high activity levels.

We are already equipped with measures of excessive or inadequate purchasing-power for the economy as a whole. These are not sufficient. What is needed is a measure of the adequacy of purchasing-power in each industry. The national income analysis outlined above provides this.

Knowing those industries where purchasing-power becomes excessive at high levels of effective demand, it is open to the Government to assist in removing bottlenecks which prevent expansion in those industries or, if that cannot be done, to find a means of channelling purchasing-power away from them. The national income analysis will also suggest measures the Government could take and will give some indication of their probable effects.

We have indicated some of the corrective measures a Government could take, within the framework of the analysis, to enable it to achieve a balanced economy at high levels of activity. We have not suggested what it should do. There is a wide range of choice open. Some Governments will favour measures which assist private enterprise, others will favour those which control it, and so on. We do, however, suggest that any Government, unless it is guided by this type of analysis in its employment, immigration, import control, subsidy, and price control policies (to mention just a few), will be unable to obtain high activity levels without encountering serious difficulties in maintaining a balanced economy.

In particular, this national income analysis can be of considerable value to a Government which desires to reduce unemployment with as few controls as possible, or, as in New Zealand at present, to reduce controls with as little unemployment as possible.

Part III—Measurement of Inflation and Investment

1. OPEN AND LATENT INFLATION

In everyday language, inflation is more or less automatically associated with a rise in prices, but in its broadest sense inflation relates not only to rising prices but also to the underlying causes of the price rise. Some kind of physical change creates pressures which drive prices or wages or profits or bank advances or deposits up or down. And this pressure exists in any inflationary or deflationary situation. But the pressure is not always allowed to work itself out in higher prices, profits, &c. In many circumstances, such as war, the pressures are held in check by controls. And this is the basis of the important distinction between open or active inflation and suppressed or latent inflation.

In extreme open inflation there are no controls and all prices, including wages, rents, and interest rates, are determined by supply and demand. When, as a result of war or the preparation for war, the volume of goods and services produced for civilian consumption falls without a corresponding fall in incomes, prices increase because the same amount of purchasing power competes for fewer goods. Wages will also rise, but as they are more “sticky” than prices they will not keep pace. The result is a redistribution of income in favour of profits. This process will continue until the real wages bill has fallen to the point where money wages are in line with the reduced quantity of goods and services available. To put it another way, this process will continue until the redistribution of income away from the classes with a high propensity to consume has brought about a new balance.

Where attempts are made through rationing and price controls together with some stabilization plan to restrict inflationary movements so that no section of the community suffers, we get suppressed inflation. People will have more money than there are goods to buy, and the result will be accumulated claims to goods and services. Those claims can take many forms. They may be expressed in subscription to national savings campaigns or they may simply increase bank deposits. The important point about latent inflation is that people accumulate savings which they want to use for consumption as soon as goods are available. The result is that at the end of the war or other inflationary period people have large “hoards” which they would like to spend. Had these savings been spent during the period of shortage they would have been spent partly on more or better food and the like and partly on semi-durable goods such as motor-cars, houses, and so on. But once the savings hare been accumulated they cannot, except to a very small extent, be spent on the whisky, butter, and other food which was not consumed during the war. Therefore, most of the accumulated savings will be diverted to durable and semi-durable goods. This explains in part at least the very high post-war demand for cars and houses.

We have described latent and open inflation. In practice we must regard these as extremes. Most countries have shown elements of both open and latent inflation. An example of fairly open inflation is France, while the United Kingdom has so far suppressed inflation more than most countries. Both Australia and New Zealand have acted similarly to the United Kingdom. However, since recently there has been a trend in both New Zealand and Australia to work off the latent inflation by a certain measure of open inflation.

2. THEORETICAL BACKGROUND TO MEASUREMENT

There are many methods of measuring inflation and inflationary pressures. None is completely satisfactory.

The degree of open inflation is traditionally measured by a variety of index numbers. All price index numbers give some measure of inflation. National income statistics looked at from the income approach give an indication of groups or factors of production which have gained or suffered during the inflation. Some economists have used volume of money in circulation or credit creation by banks as measures of inflation. All those approaches are useful as indicators of the extent to which anti-inflationary measures are successful. They are also useful in estimating the likely effectiveness of any proposed action. If, however, we want to get an idea of the extent of inflationary pressures we must look to national expenditure estimates as primary sources. Before doing this we wish to stress both the identity and the difference between savings and investment. When we look at national expenditure figures at the end of the year, savings must equal investment by definition. If, however, we try to estimate for the future what people are likely to save and what they are likely to invest, we may get different totals for savings and investment, because savers and investors are not the same people and do not co-ordinate their decisions. It is in the equalizing of savings and investment through, for example, forced savings that inflationary and deflationary pressures are created.

The United Nations Department of Economic Affairs has suggested in “Inflationary and Deflationary Tendencies, 1946–48,” that inflationary pressures can be assessed through movements in what they call non-consumption payments. Gross private income (after direct taxes) is used partly for consumption—i.e., current expenditure on goods and services—and partly for savings. Savings are the source of investment which consists of—

  1. Gross capital formation—

    1. Private.

    2. Public

  2. Export surplus.

  3. Budget deficit.

(a), (b), and (c) are termed net non-consumption payments. If we take a broad enough view of investment and savings, these payments become identical with savings. The significance of this to the study of inflationary pressures is that if net non-consumption payments increase, savings must increase by an equal amount. If private income earners do not want to increase their savings, they are forced to do so. This forcing can be done through compulsory loans or through rationing and price control schemes and similar methods. The important point is that consumers would like to spend this money if the goods were available Now, the United Nations experts do not try to measure this gap between what people want to spend and what they are able to spend. They merely say that changes in net non-consumption payments are an indication of changes in inflationary pressures. In saying this they are assuming that there is not a corresponding increase in the desire to save, with the result that net non-consumption payments have been brought into line with savings by means of forced savings.

J. Keith Horsefield, in “The Measurement of Inflation” (International Monetary Fund Staff Papers, February, 1950), goes a step further. He tries to measure the actual inflationary pressure in terms of both money and a percentage of the national income. His concepts are similar to those of the United Nations, and a discussion on the minor differences is not necessary for our general argument. The main difference from the United Nations is that Horsefield assumes that the propensity to consume is constant over a long period. He then proceeds to take a base year in which there were no marked inflationary pressures. The following assumed figures will illustrate his method, taking 1939 as the base year:—

1939.1940.1941.1942.Total, Four Years.
£ (million)
Personal consumption2002503204001,170
Net non-consumption payments5070100150370
    Private income2503204205501,540

In 1939 there were no pressures and net non-consumption payments were 20 per cent. of private income. Over the four years up to the end of 1942, private income was £1,540 million; and under normal circumstances and in the absence of pressure, not non-consumption payments would have been 20 per cent., or £304 million, of the private income for the four years. In fact, these payments amounted to £370 million, which means that people were forced to save £66 million which they would have preferred to spend. Inflationary pressures thus amount to £66 million, or 12 per cent. of the 1942 private income.

It is hardly necessary to stress the tremendous importance for policy formation of such figures. Although we have a long way to go before techniques are sufficiently improved to make such figures reliable, a few examples of their use are given. We could calculate the extent to which income would have to be redistributed to remove inflationary pressures. We could assess how much increased taxation would be necessary to halve the pressures. We could tell the effect of any given import surplus. In other words, we would no longer be entirely in the dark in assessing the effects of any proposals intended to meet the inflationary pressures.

3. APPLICATION TO NEW ZEALAND

  1. Practical Limitations.—Before attempting to apply the theories to New Zealand, let us state two important qualifications. Firstly, it is probably an unwarranted assumption that the propensity to consume over a long period remains constant. The introduction of social security schemes throughout the world has undoubtedly increased the propensity to consume of workers; or, more precisely, it has reduced the need to save, and therefore reduced the propensity to save of workers. Unfortunately, empirical studies of the propensity to consume of various income groups are extremely rare and not adequate for any reliable estimates. The propensity to consume is, of course, available retrospectively for the whole community. It simply equals actual consumption. It is when we talk prospectively that the difficulties arise. In other words, though we know how much we have spent on consumption, we do not know how much people had intended to spend on consumption. And it is this difference between what has actually been consumed and what would have been consumed had there been ample supplies that constitutes inflationary pressures. Secondly, it is obvious that the propensity to consume of low-income groups is greater than that of most other groups. It follows that if income is redistributed in favour of workers, the demand for consumer goods will rise and inflationary pressures will increase. Conversely, if income is redistributed in favour of profits, inflationary pressures will be reduced. Until we have a reasonably adequate measure of the propensity to consume of wage and profit earners respectively, we will not be able to make necessary adjustments to our measurements and therefore our plans.

  2. Inflationary Pressures.—Before applying the formula suggested in the United Nations report to New Zealand, we wish to stress that the Government Statistician regards national expenditure figures as tentative only and that, therefore, our results have even less finality; that it would require a research team to work out enough detail to make possible a practical plan to control these inflationary pressures; and, finally, that the approach does not require detailed economic planning and is therefore of equal use to Labour and Conservative Governments. The difference would be that a Labour Government could use the figures to eliminate the trade cycle and retain a very high level of employment at the cost of a certain amount of more or less irksome restrictions and controls. A Conservative Government, on the other hand, would he able to mitigate the trade cycle, avoid irksome controls, but at the cost of some unemployment. (One possible method of reconciling these two approaches is suggested in Part II.)

As our national expenditure series is not available for all years since 1938–39 we cannot apply Horsefield's method of measurement. The following tables therefore apply the United Nations concepts to our statistics:—

1938–39.1943–44.1946–47.1947–48.1948–19.1949–50.

* Numbers in parentheses are references to item numbers in the official estimates.

£ (million)
Private income (26)*200333396446461518
Less direct taxation (28)247578779495
 176258318369367423
Plus depreciation (13)151722252729
    Gross private income after tax191275340394394452
£ (million)
Gross capital formation in New Zealand (17)43408513370116
Exports less imports (18)−6−429−654
Budget deficit on current expenditure (40)−663−24−19−20−13
Total net non-consumption payments31999010855107
Personal consumption (27)160175250285340345
    Gross private income after tax191274340393395452
Percentage of Total
Gross capital formation22.514.625.033.817.725.7
Exports less imports−3.1−1.58.5−1.51.30.9
Budget deficit−3.123.0−7.0−4.8−5.1−2.9
Net non-consumption payments16.336.126.527.513.923.7
Personal consumption83.763.973.572.586.176.3
 100.0100.0100.0100.0100.0100.0

Source: New Zealand Official Estimates of National Income and Expenditure, 1938–39 to 1949–50.

NOTE.—The slight differences in figures for gross private income after tax in the first two tallies are due to rounding off.

The following figures show the contribution to net non-consumption payments made by the public sector:—

1938–39.1943–44.1946–47.1947–48.1948–49.1949–50.
£ (million)
Budget deficit on current account−663−24−19−20−13
Capital formation—General Government221427334352
Overall deficit16773142339
Percentage
Over-all deficit as percentage of private income8.328.00.93.55.88.6

Comments on the Tables.—(1) The high percentage of net non-consumption payments for 1943–44 is due to the high budget deficit which was needed to finance the war.

(2) 1946–47 and 1947–48 are characterized by high capital formation, presumably to make up for war deficiencies. Both years also show high Budget surpluses on current account.

(3) The high figure for private capital formation in 1947–48 (private capital formation, 1938–39, £21 m.; 1946–47, £58 m.; 1947–48, £100 m.; 1948–49, £27 m.; 1949–50, £64 m.) was due largely to a great increase in stocks. This came about through more liberal import licences for a short period in 1947. Traders apparently overestimated shortages, and much of the large shipments which arrived in December, 1947, was still unsold in March, 1948.

(4) The fall in private capital formation during 1948–49 was due, firstly, to a substantial reduction in physical stocks and, secondly, to the exchange adjustment of August, 1948. To allow for losses from the exchange adjustment, the Commissioner of Taxes authorized traders to revalue their stocks. The net result was a substantial reduction in stock values at March, 1949, compared with March, 1948. On the whole, it is probably correct to say that inflationary pressures were less at the end of the year than at the beginning.

(5) The over-all Government deficit of £26 million shown for 1949–50 is not related to the “deficit” of £26 million shown in the 1950 Budget. The equality of the figures is accidental. The national income figure shows that Government receipts from all sources excluding loans were £26 million less than was required for all Government expenditure, including capital expenditure. The Budget figure, on the other hand, is arrived at by adding borrowing from the Reserve Bank to the deficit (surplus) in the Consolidated Fund, the Social Security Account, and the War Expenses Account.

It is clear from the above figures and comments that we cannot at present give an answer on the amount of inflationary pressures. However, substantial pressures already existed in 1938–39; this was shown by the need to impose import restrictions in December, 1938. Therefore, even when net non-consumption payments were as low as 16 per cent., pressures were building up. This means that to-day these pressures must be a very large percentage of a year's national income. The problem of working off these pressures is therefore difficult and must be tackled gradually. We are fortunate in New Zealand that the problem is not as urgent as elsewhere, because almost all the pressures have been channelled into demand for durable goods, mainly motor-cars and houses. Shortages in other types of commodities, particularly food and clothing, are now comparatively slight.

4. IS NEW ZEALAND OVER-INVESTING?

In New Zealand the percentage of capital formation to gross national product at market prices and the percentage of net non-consumption payments to private income appear high in comparison with other countries. A comparison of gross capital formation as a percentage of gross national product is set out:—

1938–39.1945–46.1946–47.1947–48.

* Not available.

 Per Cent.Per Cent,Per Cent.Per Cent.
Australia18232118
Canada16152220
United Kingdom*152222
New Zealand19162028

The following table compares the percentages of net non-consumption payments with gross private income in various countries:—

1938–39.1946–47.1947–48.1948–49.1949–50.
 Per Cent.Per Cent.Per Cent,Per Cent.Per Cent.
France19.819.018.2  
United Kingdom15.019.116.316.4 
Australia19.122.321.8  
U.S.A.17.315.413.116.0 
Canada22.922.019.722.0 
New Zealand16.326.527.513.923.7

NOTE.—The years under which the percentages are shown are not always exactly the years to which these percentages actually apply. Most figures are taken from “Inflationary and Deflationary Tendencies, 1946–48” (see page 1051).

From the tables, particularly the first one, it has been inferred that New Zealand may be attempting too much investment. However, closer analysis shows that the matter is more complex than the figures show, and that it is not justifiable to compare percentages of capital formation among various countries without taking into account differences in the economies of those countries. These differences (apart altogether from differences of concept and definition) are many and important. Here we only discuss three: population trends, population density, and productivity.

(i) Population Trends.—A country with an increasing population requires more capital formation in terms of national income than a country with a stationary population. This becomes immediately obvious when we consider that new housing, increased transport facilities, and the like must be provided for the increased population.

In New Zealand the population increased on an average by about 2 per cent. per annum during the past five years. It is difficult to estimate the capital requirements for each new person. National wealth figures could be used as a guide. The latest available estimates (1940) indicate that the wealth of New Zealand is of the order of £600 per head. Now, it would be incorrect to say that each new person necessarily requires a further capital outlay of £600. A great deal depends on how the increase has been brought about. Also many amenities such as power reticulation, roads, railway-lines, and the like may not need to be increased proportionately. On the other hand, prices have risen considerably since 1940; and, on the whole, we consider that it would be a reasonable estimate to allow a capital expenditure of £600 for housing and other essential needs to each addition to the population. This amounts to about £21 million per annum to cater for an annual population increase of about 35,000. Now let us translate this into national income figures:—

 £
Gross national product in New Zealand for 1949–50 was537,000,000
Of this, gross capital formation was116,000,000 or 22 per cent.

Now let us see what would have happened had our population been stationary instead of increasing by 2 per cent. The working force would have been about 2 per cent. less (cet. par.) and our national product would also have been 2 per cent. smaller; that is, instead of £537,000,000, it would have been—

 £
 526,000,000
But we need not have provided housing, &c., for 35,000 people, costing £21,000,000. There-fore our capital formation would only have needed to be95,000,000, or 18 per cent.

Thus the figures show a standard of capitalization which could be maintained by an allocation of 18 per cent. of national product to capital formation for a stationary population, but would require 22 per cent. for a slowly expanding population.

(ii) Population Density.—A much smaller percentage of capital formation is required in a densely settled area than is the ease in a country such as New Zealand. In New Zealand the per caput requirements for roads, railways, and other forms of transport, and for power and the like are undoubtedly extremely high in comparison with England, for example.

(iii) Productivity.—The more mechanized a country is—the more machines it has per worker—the larger the percentage of its income which it needs to use for capital formation. On the other hand, the higher the productivity of natural resources—land, minerals, &c.—the less capital formation is required to maintain a given standard.

Long and Short Period Standards for Investment.—Thus we have seen that if we wish to compare the level of investment in New Zealand with another country we must at least adjust for such items as population changes, population density, and productivity levels, which affect capital requirements. Apart from the very considerable difficulties involved in making such adjustments, capital requirements need not be provided by regular investment each year, so that the resulting comparison would only be relevant as an average over a long period.

In judging the desirable level of investment for any particular year we must be guided partly by an assessment of future capital needs based on population and production trends and partly by net non-consumption payments.

For a particular year the Government must be concerned with the amount of net non-consumption payments as a moans of altering inflationary or deflationary pressure. But capital formation is an important part of not non-consumption payments; and since the Government must also concern itself with the future, capital formation policy needs to be judged by both the criteria we have suggested above. There thus may be a clash between the requirements of the future and of the current period. This clash can possibly be resolved to some extent by spreading the provision of future capital requirements over a number of years on a counter-cyclical basis. In general, however, we believe that it is necessary for the Government to be primarily influenced by the capital needs of future years in deciding what types of net non-consumption payments should be used to counter inflationary or deflationary tendencies. This is particularly so if high employment levels are maintained over long periods so that there is little opportunity for balancing out over the years.

It will not be possible to make a reasonably accurate assessment of future capital needs in New Zealand until the links between national money incomes and real activity levels, which are discussed in Part V, are developed further. In the meantime, there is not sufficient basic information to give a plain “Yes” or “No” in answer to the question of whether New Zealand is over-investing. Therefore, investment policy, to the extent that it is not based on sheer necessity, must be based largely on the hunches of politicians or their advisers. It is almost unnecessary to stress that the cost of getting the necessary statistical information for sound policy formation is insignificant in comparison with the waste which may result from a wrong policy.

5. SUMMARY

  1. We must distinguish between open and latent inflation. Pressures are the cause of both, but in open inflation these pressures are allowed to express themselves in higher prices, higher wages, an increased volume of money, and a redistribution of income in favour of profits and against fixed-income earners (including salary and wage earners). In latent inflation the pressures are kept in check through price, wage, credit, and other controls. These controls result in shortages of goods, queues, and rationing, but they permit a reasonably even distribution of goods and a stable distribution of incomes.

  2. In developing policies to meet these inflationary pressures, measurement of them is of the utmost importance. On pages 1051–52 we discuss briefly two methods which can be used for measuring these pressures.

  3. We have applied the measurement technique developed by United Nations to New Zealand figures, and have shown the contribution to inflationary pressures by the public sector, but our national expenditure estimates are not yet available in sufficient detail to arrive at any final conclusions.

  4. In our discussion of the question of whether New Zealand is at present over-investing, we have shown conclusively that a comparison of New Zealand capital formation with the capital formation of other countries in terms of national expenditure percentages is not valid unless adjustments are made for differences in the economies concerned. The adjustments would have to cover at least, differences in population, growth, in population density, and in productivity. These adjustments are difficult to make, and therefore another approach is needed.

We consider that the answer lies in a close analysis of real activity levels. Such an analysis will only be possible when the links from national money income to real activity levels, which are discussed in Part V, become available. In view of the enormous waste of resources which could and often does result from a bad investment policy, it is of the greatest importance that national income data be developed as soon as possible to a point at which over-all investment policy can be based on facts instead of on the hunches and prejudices of politicians.

Part IV—National Income as a Basis for Wages Policy

1. INTRODUCTORY

  1. Full Employment and Wages Policy.—In theory, a successful full employment policy requires a conscious wages policy. There is, however, complete disagreement among economists and others on what this wages policy should be. If we assume full employment, price stability, and the absence of all inflationary and deflationary pressures, then the logical policy would be to allow wages to increase in accordance with increased productivity of workers. Thus, if the average increase in productivity over a period of years is, say, 2 per cent. a year, then an annual 2 per cent. increase in wage payments would (cet. par.) maintain a stable price level and a stable distribution of income. The same net result could be achieved by reducing prices and keeping wages stable. Yet in the world we live in we cannot expect full employment and stability and the absence of pressures'. In fact, we almost invariably suffer from either over- or under-employment, from rising or falling prices, and from inflationary or deflationary pressures. In practice, then, our question is what wages policy we should adopt to assist in remedying over- or under-employment.

  2. The Distribution of Income.—Consideration of a wages policy focuses attention on the distribution of income between economic classes, which is determined partly by the free play of market forces and partly by Government action. Government action can take two major forms: firstly, the Government can control how much is to go to the factors of production in the primary distribution of factor rewards. This is done through price, wage, credit, and other controls. Secondly, after the factors have received their rewards, these rewards can be redistributed by various forms of taxation, subsidies, social security, and so on. Control over factor incomes is applied to a greater or less extent depending on the colour of the Government, while redistribution is applied fairly widely by all countries; but even the most liberal Governments (in the economic sense), such as the U.S.A., apply wide controls of the first type at least over the more obvious monopolies. Thus, price control in U.S.A. over such natural monopolies as gas, electricity and the like is common and often administered strictly.

No matter how little or how much action the Government takes about the distribution of incomes, it will in a democracy he held responsible for the net results. It cannot be content to say to the Court of Arbitration, “Fix just wages,” any more than it can be content to say to the Price Tribunal, “Fix just prices,” or to a Taxation Tribunal. “Fix just taxes”: and, in fact, in New Zealand the Government has given specific: policy instructions to the Price Tribunal and clear indications of policy to the Court of Arbitration through stabilization regulations. The Government can, of course, decline to interfere in the primary distribution of factor incomes, but such action is frequently associated with, firstly, under-employment, and, secondly, falling real wages. The U.S.A. is the typical example. Almost all controls (rents excepted) were removed shortly after the war, with the result that unemployment increased substantially and that prices increased more than wages.

American experience confirms the theory that, in the absence of direct Government control, wages as a result of collective bargaining are more sticky than prices. It follows from this that when there are inflationary pressures, prices will rise faster than wages and income will be redistributed in favour of profits. The reverse is true in the case of deflationary pressures, as far as employed workers are concerned.

Where there is complete control over wages and prices it is theoretically possible to bring about any desired change in the distribution of income through a change in wages alone. To the extent that controls are incomplete or are not observed, the free market tendency of prices to rise faster than wages will reassert itself. As we shall show later, controls in New Zealand at present are at a stage where a large wage increase preceding price increases will probably bring about a slight redistribution of factor incomes in favour of wages. However, as controls are progressively removed before inflationary pressures are worked off, wage increases will result in a redistribution in favour of profits.

It is worth while to stress here that a redistribution of income may be desired because the Government wants to improve the share of a particular group in the community. Here it must be remembered that the logical justification for considering shares going to wage-earners and others is the fact that the contributions of wage-earners and of others to the productive process are in certain proportions. We therefore argue that, unless there is a change in those proportions, there is no justification (cet. par.) for a change in factor rewards. Alternatively, a redistribution of income may be desired because it can be expected to lead to increased employment or to reduced inflationary pressures or to greater productivity, and so on. The achievement of an otherwise satisfactory distribution of income does not, however, preclude the possibility of unemployment.

(iii) The Court of Arbitration.—The Court's wage-fixing functions are twofold. Firstly, it fixes general wage levels more or less in accordance with Government policy. Secondly, it fixes wages and conditions for individual industries and types of work. There can be no doubt that the Court is eminently suitable for the second purpose. We want to find out to what extent the Court is suitable for fixing general wage levels.

Section 5 of the Economic Stabilization Regulations 1950 deals with “General Orders Increasing or Reducing Rates of Remuneration.” Subsection (3) provides: —

“(3) In making a general order under this regulation the Court shall take into account:—

“(a) The general purpose of the Economic Stabilization Act, 1948:” (The general purpose of this Act is “to promote the economic stability of New Zealand.”)

“(b) Any rise or fall in retail prices as indicated by any index published by the Government Statistician:

“(c) The economic conditions affecting finance, trade, and industry in New Zealand:

“(d) Relative movements in the incomes of different sections of the community:

“(e) All other considerations that the Court deems relevant.”

The discussion which follows will be mainly concerned with clauses (b) and (d). It will deal firstly with the criteria and methods the Court might use to determine relative income movements, and secondly the extent to which it would be practicable and desirable to take price and relative income movements into account in making general wage orders.

2. USE OF NATIONAL INCOME STATISTICS TO DETERMINE RELATIVE INCOME MOVEMENTS

We have two main lines of approach, through national income statistics or through factory production statistics.

Those who drafted subsection (3) (d) of the regulations had national income figures in mind as the statistics to be used to measure changes in income distribution. The clause is apparently the result of worker pressure, which was aimed at restoring the workers' share of the cake to pre-war levels.

At this point we must decide how the Court could determine relative income shares.

As there appears to be considerable confusion on this point, we shall show why only private income before taxation could provide the raw material.

  1. Gross National Income or Product is clearly unsuitable, because it would be unreasonable to divide the cake without making sure that sufficient is available to produce a cake of at least equal size next year. In other words, allowance for depreciation and obsolescence must be made before sharing anything.

  2. Net National Income at Market Prices.—At first sight this appears attractive, but has the drawback, for our purpose, of including indirect taxes net of subsidies. If this total were taken as a basis for wage-fixation, the Government would be deprived of one of the most powerful weapons which can be used to prevent large-scale unemployment. An example will illustrate the point. Assume that purchasing-power is deficient and the Government decides on £15,000,000 of food subsidies as a remedy. The figures might be along the following lines (assuming that £12,000,000 of the subsidies will be for the benefit of salary-wage earners and £3,000,000 for others):—

    1951–52.1952–53,
     £(million)Per Cent.£(million)Per Cent.
    Wages and salaries2005021253.00
    Other factor income1804518345.75
     3809539598.75
    Indirect taxes net of subsidies20551.25
        Totals400100400100.00

    Thus, merely because subsidies have been introduced, the share of both workers and other factors has risen, although under our assumption the workers' share has risen by more. Yet if it were argued that relative shares of national income at market prices should be stable, a wage reduction would be justified. However, such a reduction would cancel out much of the stimulus given through the payment of the subsidies and thereby vitiate any anti-cyclical policy. In addition, net national income at market prices has all the disadvantages of net national income at factor cost discussed below.

  3. Net National Income at Factor Cost includes such items as lump-sum payments from the United Kingdom and a deduction for public-debt interest paid in New Zealand. None of these items is suitable, because each tends to distort the relationship between wages and other private incomes.

  4. Private Income After Taxes is unsuitable for the same reasons as net national income at market prices. The Government to responsible for taxation and must be able to use it to bring about any redistribution of income it desires. The Court of Arbitration is only one of several links which together determine the distribution of income. Any attempt on the part of the Government to make the Court exclusively responsible for the distribution of income is an attempt to evade responsibility for what is essentially a political issue.

  5. Private Income Received by Income-earning Groups is shown in Appendix II of the 1949–50 national income estimates. The figures in the tables in that Appendix show the total income from whatever source of salary and wage earners as a group and similarly for other groups. The figures present a rough basis on which the whole of a Government's policy can be judged. We can at least make informed guesses as to what groups the Government's policy has favoured. Probably the most serious weakness of the figures is the limited range. There are only these four groups:—

    1. Salary and wage earners.

    2. Persons not gainfully employed.

    3. Other persons.

    4. Company income (before distribution).

Thus the General Manager of the Railways, the Ford Motor Co., &c., are included in the same class as unskilled labourers on the minimum wage. As soon as more detailed analyses of each income-tax return are made it may be possible to elaborate these figures considerably. It is, however, doubtful whether it will be possible to make the important distinction between salary-earners and the wage-earners who come under the jurisdiction of wage-fixing authorities. But even if this were possible, the figures are obviously not suitable as a basis for wage-fixation.

(vi) Total Private Income Before. Taxation.—Subject to the following adjustments, private income before taxation provides the most suitable basis for measuring relative income changes: —

(a) Deduct Pay and Allowances of the Armed Forces: It, has been argued that this item is no different from wages paid to other Government servants such as the police, &c. If we were to live in permanent peace (or permanent war) the argument would be valid. However, periodic wars completely distort the picture. It would be fair to assume that during the war the Armed Forces contain salary and wage earners and other-income earners in similar proportions to the rest of the community. In other words, farmers, wage-earners, accountants, &c., all join the Forces. Yet the distribution of income of those remaining behind should not be affected. In other words, as long as industry carries on, we expect its wage-profit structure to be unaltered, or modified in only a small degree by wartime distortions. We therefore consider that we can get a fairer picture of the distribution of income between wages and surplus by excluding pay and allowances of the Armed Forces. The following examples taken from actual figures of private; income illustrate the point:—

ARMED FORCES INCLUDED

1938–39.1943–44.1948–49.
 £(million)Per Cent.£(million)Per Cent.£(million)Per Cent.
Salaries and wages111.156.0141.559.922649.8
And pay of Forces0.957.94
Other income88.144.0133.740.123250.2
 200.1100.0333.1100.0462100.0

The above table indicates that “Other income” has fallen between 1938–39 and 1943–44 to the benefit of salaries and wages. If, however, Armed Forces' pay is excluded, the following quite different trends emerge: —

ARMED FORCES EXCLUDED

1938–39.1943–44.1948–49.
 £(million)Per Cent.£(million)Per Cent.£(million)Per Cent.
Salaries and wages111.155.8141.551.422647.2
Other income88.144.2133.748.623252.8
 199.2100.0275.2100.0458100.0

We accept the second table as giving a better indication of movements in the relationship between wages and other incomes. If we were to accept the first table, a wage reduction would have been justified in 1943–44 (assuming constant relationships were desired), in spite of the fact that other incomes had increased more both absolutely and relatively than the incomes of salary and wage earners.

(b) Deduct Social Security Benefits and Pension: It is possible to allocate this item to the various factors, but it is submitted that in deciding how revenue of any undertaking should be split up between labour, capital, &c., social security income should be excluded. In other words, the Court has to decide the level of wages without taking into account changes in income distribution brought about by the Government through, taxation and other means,

(c) Deduct Rental Value of Owner-occupied Houses: This is an imputed item and we should avoid using it unless it can add to the usefulness of our calculations. It is important for finding total private income, but has little significance in deciding what are reasonable shares of wage and salary payments and other-income payments. Again, this item is important when we try to find the income of salary and wage earners as a group, but, as pointed out earlier, this is beyond the scope of what a wage-fixing tribunal can reasonably do.

(d) Eliminate Changes in Balances in Primary Produce Stabilization Accounts: The inclusion of this item for wage-fixing purposes grossly distorts the picture. Although there is no doubt that the item should be included in total private income, it is equally clear that it must be excluded for wage-fixing purposes. It is true that the Government has agreed that the stabilization funds will be used for the benefit of the industries concerned. It is equally true that in the meantime they are being used by the Government for general investment purposes.

For our purposes it is unsound to include changes in stabilization account balances in other personal incomes, because when these balances come to be used they will enter into income partly as wages to farm-workers and partly as rewards to owner-occupiers. Further, if we include these changes, the actual incomes received by farmers will be overstated when balances are rising and understated when the balances are falling. Thus, at present the increasing balances would be a justification for higher wages; but possibly next year when the farmers may draw on the accounts their actual income would not fall, but there would be a case for wage reduction. A simplified example is given:—

INCLUDING CHANGES IN ACCOUNTS

1949–50.1951–52.
 £(million)Per Cent.£(million)Per Cent.
Salaries and wages20074.120080.0
Farm incomes6025.96020.0
Changes in stabilization accounts +10 −10
 270100.0250100.0

EXCLUDING CHANGES IN ACCOUNTS

1949–50.1951–52.
 £(million)Per Cent.£(million)Per Cent.
Salaries and wages20076.920076.9
Farm incomes6023.16023.1
 260100.0260100.0

It is beyond doubt that a wage reduction, which would be required under the first example after 1951–52, could not be justified in the light of the points made above.

After all these adjustments have been made, we can draw up the following revised table:—

INCOME BEFORE TAXATION

Year Ended 31st March1939.1940.1941.1942.1943.1944.1945.1946.1947.1948.1949.1950.
General wage increases  Aug., 1940 Apr., 1942  Apr., 1945 Oct., 1947 June 1949
Approximate percentage increase  5 5  11  9
£ (million)
Salary and wage payments111111118121128141148162187211227253
Other personal income—            
  (i) Professions, commerce, trade, business, and other161715606467722735404447
  (ii) Farming252627    4247606484
  (iii) Interest, Rent, &c.151615    1516161616
Company income (before distribution)202524283337384248544853
    Totals187195199209225245258288333381399453

PERCENTAGE DISTRIBUTION OF INCOME BEFORE TAXATION

Year Ended 31st March1939.1940.1941.1942.1943.1944.1945.1946.1947.1948.1949.1950.
Percentage
Salary and wage payments59.357.059.357.956.957.657.456.256.255.456.955.8
Other personal income—            
(i) Professions, commerce, trade, business, and other8.58.77.528.728.427.327.99.410.510.511.010.4
(ii) Farming13.613.313.6    14.614.115.716.018.6
(iii) Interest, rent, &c.8.08.27.5    5.24.84.24.03.5
Company income (before distribution)10.612.812.113.414.715.114.714.614.414.212.111.7
Totals100100100100100100100100100100100100

The main advantages of the above table are (1) that the income shares are not distorted through such wartime items as pay and allowances to the Forces or lump-sum payments, and that incomes are shown before any redistribution through social security benefits, &c.; (2) that the factors which would have to bear the main burden of any redistribution of income are clearly shown, and the probable result of any change in wages could be estimated with a reasonable degree of accuracy.

It is most important to remember, however, that the total in the table is not a national income aggregate and does not in any way give a picture of movements in national or total private income. It is merely the most convenient form in which the Arbitration Court and wage-fixing tribunals might use the figures.

Let us now briefly examine what emerges from the table. The first point is that the general wage increases granted during the past eleven years have not brought about any consistent change in the distribution of income. The increase of August, 1940, improved the workers' share for 1940–41 and 1941–42 in comparison with 1939–40. The increases of April, 1942 and 1945, seem to have resulted in a deterioration of the wage-earners' share, while the results of the October, 1947, and June, 1949, increases are inconclusive. Next we notice that wage, salary, and interest earners have lost ground, while all others have gained. Wage and salary earners lost much ground from 1938–39 to 1942–43, but from then on to the present the downward trend has been very slight. In other words, during the period of stabilization when controls were strictest the workers did best. The fall in the wage-earners' share from 1948–49 to 1949–50 is due entirely to the increased farm incomes.

Falling rates of interest are the main cause of the interest and rent earners' decline. Companies show substantial increases in their income share before taxation during the peak war years. However, examination of figures of disposable income shows fairly clearly that the high wartime gross profits were merely successful attempts to pass increased direct taxes into prices. Disposable company income is a smaller percentage of total disposable income to-day than was the ease in 1939. Both farmers and traders have increased their shares; in the first ease, due to rising overseas prices, particularly wool, and in the second case, due largely to the ability of trailers and professional people to avoid price controls.

3. FACTORY PRODUCTION STATISTICS AND RELATIVE INCOME MOVEMENTS

Factory production statistics cover slightly less than 25 per cent. of the total people employed. The following table is adapted from factory production statistics. The figure for surplus (profits), which is not shown in official publications, is arrived at by deducting “salaries and wages paid” and “other expenses” from “added value”.

Year.Added Value.Other Expenses.Wages.Surplus.Wages Plus Surplus.Wages as Percentage of Wages Plus Surplus.Surplus as Percentage of Wages Plus Surplus.
 £(m.)£(m.)£(m.)£(m.)£(m.)Per Cent.Per Cent.
1925–2630.78.416.26.122.37327
1926–2731.08.616.36.122.47327
1927–2830.58.816.15.621.77426
1928–2931.39.316.35.722.07426
1929–3032.310.016.85.522.37525
1930–3129.39.415.64.319.97822
1931–3224.18.312.63.215.88020
1932–3323.48.112.03.315.37921
1933–3424.78.112.14.516.67327
1934–3527.08.813.25.018.27327
1935–3629.89.414.85.620.47327
1936–3735.010.518.36.224.57525
1937–3838.310.521.06.827.87624
1938–3938.810.022.36.528.87723
1939–4043.811.024.58.332.87525
1940–4148.612.026.99.736.67327
1941–4253.312.829.511.040.57327
1942–4358.513.332.312.945.27228
1943–4462.814.534.413.948.37129
1944–4567.115.537.414.251.67228
1945–4671.816.341.514.055.57525
1946–4779.618.245.316.161.47426
1947–4890.421.252.117.169.27525

The main point which emerges from the statistics is that during the depression of the early “thirties” the relative share of wages and salaries was far greater than at any other time during the period 1925–48.

Provided some elaborations are made to the statistics, the figures would give a reasonable guide to the Court in assessing the relative shares of factory workers and their employers, and also the ability of employers to pay higher wages without increasing prices.

4. EFFECTS OF WAGE INCREASES OX THE FUTURE DISTRIBUTION OF INCOME

National income statistics not only enable us to see what has happened to the distribution of income, but also enable us to predict the likely effects of any major changes. Thus, when the statistics are more complete, we shall be able to assess the effects of changes in export and import prices, in consumption and savings, and so on. But even with the statistics in their present form, we can attempt to estimate the changes in the distribution of income which are likely to result from a general increase in wages. Such estimates must be made in the light of the particular circumstances existing at the time of the wage change. The following estimate is based on conditions at the present time (November, 1950). The estimate is not an attempt to forecast accurately what would happen in the case of a given wage increase, but rather to suggest a new approach to the problem and to use this approach to give some idea of the general direction of changes in the distribution of income due to a wage increase.

Before tracing the effects of a general wage increase let us state some of our assumptions and some reservations:—

  1. We are assuming that a wage increase precedes any increase in prices and is an attempt to restore the workers' share of income, which has fallen over the past ten years.

  2. The number Of salary and wage earners may have increased more or less than the number of working proprietors. To the extent that this has happened, income shares shown by the statistics are not a true indication. We consider in Part V statistical methods of adjusting this.

  3. There are no substantial shortages in single-use consumer goods. There are, however, shortages which are serious in durable goods, such as motor-cars and houses. Inflationary pressures are thus concentrated on a few lines of durable goods. At the same time, however, increases in prices of single-use consumer goods would not result in reduced consumption, because their demand is at present inelastic. To put it another way, there would be little consumer resistance to increased prices.

  4. Price control is effective over a fairly wide range of goods and services, but the Price Tribunal would allow automatic increases in prices to offset any wage increases, except in the case of a few staple commodities such as bread, butter, tea, milk, and sugar. On the whole, we can say that at present (November. 1950), without increases in wages, price control is effective enough to prevent substantial price rises without increases in wages, but when wages increase, most sellers of goods are able to increase their prices not only by the increased wages, but also by Inking an increased profit margin.

  5. National expenditure at increased prices can only be financed either if the velocity of circulation of money increases or if the trading banks are able and willing to increase overdrafts. The only limitation to trading bank advances is the requirement that 7 per cent. of demand liabilities and 3 per cent. of time liabilities be deposited with the Reserve Bank. Allowing for a reasonable reserve of cash at the banks, this would enable a ratio of advances to deposits of over 80 per cent. The present ratio is only about 45 per cent. Therefore banks would be able to finance national expenditure at very much higher prices. Whether they would be willing to do so depends on what bank directors think of future prospects. This is a somewhat imponderable factor, but we are satisfied that under existing conditions banks would be glad to increase overdrafts.

  6. National income statistics are subject to a certain margin of error. For example, tax evasion is small on the part of salary and wage earners, but may be very large indeed on the part of “other income” earners. Further, it is often argued that evasion (both legal and illegal) is higher in times of high taxation. If this is correct, present national income figures would tend to show the position of “other income” as less favourable than it actually is. However, as our estimates are perfected, it may be possible to adjust for tax evasion.

  7. Provisional national income statistics are not available until some months after the end of the year which they cover. Any Court orders based on them would be at least a year out of date.

With these reservations in mind let us examine in detail the adjusted figures of private income given on page 1062 on the assumption that a worker's share of 57.5 per cent. (approximate eleven-year average of 1938–39 to 1948–49) is reasonable. Let us see what wage increase would be required to bring the 1949–50 percentage of 55.8 per cent. to 57.5 per cent. (Note that there was a standard wage pronouncement allowing for an increase of £35 per annum to most workers as from 1st June, 1949.) The following calculations show that it would require a wage increase of about 15 per cent. to increase the wage and salary earners' share from 55.8 per cent. to 57.5 per cent.:—

Year 1949–50.Increase Due to 15 Per Cent. Wage Increase.New Distribution in the Following Year.*

Notes to Table.

* It is assumed that the only cause of change in the figures is a general wage increase of 15 per cent.

† The assumption that salaries and wages will increase by 15 per cent. as a result of a general order by the Court increasing basic wages by 15 per cent. may be over-optimistic, because salaries will generally increase by smaller percentages.

‡ The net earnings of all those professions whose fees are expressed as a percentage of costs—e.g., architects, structural engineers, lawyers to some extent—will tend to rise by about the same percentage as wages. Fees of dentists, doctors, accountants, which are either uniformly fixed by convention or based on hours of work, will not increase much, if at all. On the whole, it is probably a fair estimate to say that net earnings of professions will increase by half of the percentage of the wage increase—that is, by 7½ per cent. (Note that price control over the whole of this group has been abandoned.)

§ For commerce, trade, and business it is difficult to estimate elicits. Builders, contractors of all types, motor-garages, and other engineering repairs base their prices on total costs plus a fixed percentage of profit. Every increase in costs thus increases profits. In theory, competition would act as a brake, but in practice there are at present few signs of it in these industries. All distributors also express their profit as a percentage of total costs; but in this field both competition and price control may make some inroads and not all distributors may be able to increase their prices enough to allow for both higher costs and larger profits. It is estimated that on the whole a wage increase of 15 per cent. will bring about an increase of 12 per cent. in the profits of commerce, trade, and business.

|| In forming, our estimates are probably reasonably reliable. It is clear that woolgrowers and growers of grass-seeds and other minor crops are not able to get higher prices. Therefore their income will be reduced by the full amount of The wage increase. Assuming they employ about 15,000 people, their income will be reduced by about £1,500,000 per annum. On the other band, dairy-farmers, wheatgrowers, many fruitgrowers, &c., operate under some form of guaranteed prices, and they will receive an increase to cover the higher wages and a commensurate increase in profits. It is estimated that these farmers earn an income of £40,000,000, which would be Increased by the full 15 per cent. of the wage Increase.

¶ The item “Interest, rent, &.,” has not shown any substantial change since 1938–39, and it is probable that it will remain stable unless there is a marked change in interest rates.

** The position of company income is similar to that of commerce, trade, and business; substantially all the companies will be able to pass on increased wages costs in higher prices; from experience it seems reasonable to say that they will increase their profits by at least half the percentage of the wage increase—i.e., by 7½ per cent.

£(million)
Salary and wage payments (15 per cent. on £253 is £38)25338.0291.0
Other personal income—   
  (i) Professional occupations and miscellaneous (7½ per cent. on £20 is £1.5)201.521.5
  (ii) Commerce, trade, and business§ (12 per cent. on £27 is £3.2)273.230.2
  (iii) Farming|| (Decrease in wool, &c., £1.5 on £35 and 15 per cent. increase on £49 is £73)845.889.8
  (iv) Interest, rent, &c.16.0 16.0
Company income (before distribution)** (7½ per cent. on £53 is £4.0)53.04.057.0
 45352.5505.5
Percentage of Total
Salary and wage payments55.8 57.5
Other personal income32.5 31.2
Company income11.7 11.3
 100.0 100.0

It is possible to quarrel with sonic of the assumptions we have made, but the general picture is clear. To give salary and wage earners only 1.7 per cent. more, of our income total, wages would hare to be increased by something of the order of 15 per cent. under existing conditions. We have shown how we can forecast the likely effects on the distribution of incomes of a wage increase granted before any changes in prices. We shall later discuss the effects of wage increases granted to offset increases in the cost of living. Before doing this, however, we shall examine the effects of wage increases on inflationary pressures.

5. EFFECTS OF WAGE INCREASES OX INFLATIONARY PRESSURES

Before trying to show bow we could measure the effect of wage changes on inflationary pressures in New Zealand, a little excursion into theory is necessary.

If, in a fully employed economy, money wage rates increase more than prices, there is an increase in real wages and a redistribution of national income in favour of wage-earners. The propensity to consume of workers is greater than the propensity to consume of most other groups, and an increase in the real income of workers will therefore lead to increased demand for consumption goods. However, as we started from a fully employed economy, the volume of consumption goods has not increased and the increased demand can only result in inflationary pressures; shortages would increase and labour would become-more scarce than before the wage increase. We realize that this analysis appears contrary to Keynesian ideas, but we consider that for these reasons the Keynesian analysis does not apply to full or over-full employment as we know it in New Zealand:—

  1. Actual experience since the war in New Zealand and elsewhere has shown that increases in real wage rates have been accompanied by an increase in the demand for labour.

  2. When real wage rates rise, it would pay employers to use more capital and less labour. They are not able to do this in New Zealand in the short and intermediate period (up to, say, three years) because of import restrictions, building restrictions, and other bottlenecks. But the long-run expectations of real wage movements are too uncertain to justify plans for large-scale substitution of labour for capital, and vice versa.

  3. Employers, like workers, suffer from “money illusion.” This means that, as long as profits are rising in money terms, employers are usually satisfied, even if profits are rising more slowly than the value of money is falling. They would tend not to restrict their use of labour merely because the profitability of using it had fallen in real terms.

If, however, money wage rates are increased at a time when controls have been removed sufficiently to enable employers to increase prices by more than the increase in money wage rates, then income will be redistributed in favour of profits. Assuming no increase in productivity, real wage rates and the real wages bill will fall. Workers, if they want to maintain their level of spending, will have to use their accumulated savings. But the value of these savings will already have been reduced because of the rise in prices. Thus, the net effect of the wage increase will be to reduce inflationary pressures, to arouse consumer resistance, and to bring about a fall in employment. This was precisely the experience of both Canada and the U.S.A. when they removed controls shortly after the war. For the purpose of this argument, it is irrelevant whether the spiral starts with rising prices or rising wages. What is important is that, if controls are removed when inflationary pressures exist, the workers will inevitably be the losers.

Now let us see if we can apply the above theory to the measurement of inflationary effects of wage increases in New Zealand. Under the assumptions we have made earlier, and remembering that there is a measure of control, we have shown that a wage increase of 15 per cent. would increase the workers' share from 55.8 per cent. to 57.5 per cent. This increase would be brought about as follows:—

Year 1949–50.Increase Due to 15 Per Cent. Wage Increase.New Distribution (After Wage increase).
£ (million)Per Cent.£ (million)Per Cent.£ (million)Per Cent.
Salary and wage payments25355.8381529157.6
Other incomes20044.214721442.5
    Totals453100.05211505100.0

The next step is to try and estimate what price increase will result from the 15 per cent. wage increase. Such forecasts can be made with reasonable accuracy by a careful analysis of likely changes in the Consumers' Price Index and we shall assume for the purpose of this example that prices of consumer goods and services will increase by 10 per cent. For 1949–50 personal consumption was £345 million and the increase would therefore be £35 million to £380 million.

At this point we must estimate the propensity to consume of salary and wage earners and of other income earners. We know that for 1949–50 the propensity to consume for the whole economy was 76.3 per cent. (see discussion in Part III). We know that wage-earners spend more of their income than others, and for this example we assume that they spend 90 per cent. of their incomes on consumption. If workers spend 90 per cent. on consumption, we can, knowing total consumption, calculate that others must spend 59 per cent. on consumption. Given these propensities to consume, the people would wish to spend the increased income as follows:—

Total Income.Expenditure on Consumption.Savings.
 £ (million)Per Cent.£ (million)Per Cent.£ (million)
Salary and wage payments291902621029
Other incomes214591264188
    Totals5057638824117

From this it appears that people desire to spend £388 million on consumption: but, as we have shown earlier, goods available for consumption will be £380 million. It follows that people will be forced to save £8 million which they would hare preferred to spend on consumption. Thus inflationary pressures would have been increased by £8 million or 1.6 per cent. of personal incomes. It would take an import surplus or a Budget deficit or a reduction in capital formation of £8 million to neutralize this newly created pressure.

We wish to stress that our figures are intended us examples only. Before the methods suggested by us here could be applied, a number of refinements would be necessary and some of our terms would have to be defined more precisely. These refinements, however would only confuse the present discussion, which is concerned with principles rather than with detailed application.

6. THE COURT OF ARBITRATION AS A GUARDIAN OF REAL WAGES

We have said earlier that in making any general wage orders the Court is required to take retail price changes into account. We consider that the new Consumers' Price Index is very well suited to measure those price changes which result in changes in real wages. The exclusion of a number of luxury items such as fur routs and the like is fully justified for this purpose, because such items are not generally part of expenditure from wages. The main exclusions are alcoholic liquors, holiday travel, private motoring, hotel accommodation, sport expenses, domestic help, and private telephone rentals. In spite of these exclusions, the index covers approximately 80 per cent. of personal consumption.

In interpreting changes in the Consumers' Price Index it is important to look at the causes of the change. For example, an increase may be due largely to a reduction in working-hours, increased holidays, or improved working-conditions. In such a case, it is at least arguable whether an increase in wages would be justified. If it were granted, the statistical measure of real wages would be held stationary, but the welfare of workers would have been improved by the improved conditions.

At best, general wage increases granted to offset rising prices as measured by any retail price index can result in the maintenance of real wages. Such increases attempt to ensure that wages increase as fast as prices. But the vital question we must ask here is whether in fact this method is, on its own, sufficient to keep real wages stable. If we take a simple example of a closed economy and assume that manufacturers and traders have, because of the existence of inflationary pressures, increased prices to increase their profits, then an increase in wages to offset these higher prices may well lead to further increases in prices, and we get a slow inflationary spiral. But the interesting point is that the profit-earners have reduced real wages by the initial increase in profits. This reduction is not made good until the Court grants higher wages. Thus, if prices increase on, say, 1st January, and the Court grants a general wage increase on 1st May, prices will probably again rise on the 2nd May, and the Court will again take at least three or four months to increase wages. On the other hand, if workers would not ask for the wage rises, then profits could be increased until the limited effective purchasing-power would prevent further price increases. In the actual New Zealand scene, the picture is more complicated; but in the absence of strict control and assuming the banks' willingness to finance higher wages, profit-earners will always be at least one step ahead. If, however, the banks suddenly believe for some reason that boom conditions will cease, they may-start on a restrictive policy, with the result that employers cannot finance higher wages out of overdrafts; and if, in addition, some consumer resistance sets in, it may not be possible to increase prices. In this case real wages will rise by the full increase in nominal wages, But in such circumstances not all employers will have enough reserves to pay the higher wages. Some may be forced into dismissing some of their workers, and unemployment to a greater or lesser extent will inevitably result. Now, what is the moral of this story?

The Court of Arbitration ensured, at least since 1936, that price increases were reflected in wage increases after a few months. What is more, it ensured that these price increases were reflected in substantially all wages, not only in the wages of the more powerful unions. Statistics show a substantial secular rise in real wages since 1935. And we must remember that in the United States of America in spite of enormous increases in productivity, real wage rates fell substantially after the abolition of price controls.*

The real test of the effectiveness of the Court in this respect will come within the next two or three years. If, in spite of the removal of many price controls, there is no fall in real wages, the workers would have excellent grounds for regarding the Court as an instrument which is useful to them. However, statistics during the past thirty-five years show that only with price control were reductions in effective wages avoided (except during depressions). We could note in passing that a policy of keeping real wage rates constant would, according to Keynes, result in violent fluctuations in employment. However, in discussing Australia, where the link between minimum wages and prices is automatic, Keynes said: “… the escape was found, partly of course in the inevitable inefficacy of the legislation to achieve its object and partly in Australia not being a closed system, so that the level of money-wages was itself a determinant of the level of foreign investment and hence of total investment, whilst the terms of trade were an important influence on real wages.” This comment applies equally to New Zealand conditions.

* The weekly real wages index in U.S.A. fell from 100 in 1945 to 90 in 1948. In Canada the Index fell over the same period from 100 to 97, while in New Zealand it rose from 100 in 1945 to 103 in 1948 and 107 in 1949.

† J. M. Keynes: “The General Theory of Employment, Interest, and Money,” page 270.

7. THE COURT OF ARBITRATION, WAGES POLICY, AND NATIONAL INCOME SHARKS

We have examined the effect of wage changes on the distribution of income and on inflationary pressures. We have shown that with the assistance of price controls the Court of Arbitration has recently been a good guardian of real wages. It remains for us to discuss the kind of wages policy which might be adopted under existing conditions and to sec whether the clause enjoining the Court to take into account the distribution of income might assist or hinder such a policy.

The first point in discussing wages policy is to decide whether we want to reduce inflationary pressures or whether we are satisfied with the present high level of employment with all its advantages and disadvantages. If we desire the status quo to continue, the obvious wages policy is one of stabilization, as we have known it in New Zealand from 1942 to 1949. Effective price control and control over payouts to farmers would also be necessary. In theory, such a policy should ensure constant distribution of factor incomes. If, however, through some weakness in the control system, there is a slight redistribution of national income, this could be rectified—assuming that a constant distribution of income is desired—through a small change in general wage rates.

If, on the other hand, we want to eliminate inflationary pressures and restore a buyers' market throughout the economy (and this involves ample stocks of motor-cars, &c., but also some unemployment), we can adopt two different policies. Firstly, we can reduce the propensity to consume by reducing the effective purchasing-power of the lower-income groups through a price-wage spiral with prices leading the way. This would reduce the value of accumulated savings, of real wages, and of the wage-earners' share of national income until the total effective purchasing-power of the lower-income groups would not be adequate to buy all the consumer goods produced for that group. Inflationary pressures would then have disappeared and some of the more inefficient employers would probably be forced out of business and competition would become a reality (including competition for jobs). At this point, the Government could stabilize the economy without the use of direct controls. Control over the volume of money and over public spending would be adequate. The appropriate wages policy to work off inflationary pressures by this method would be to prevent the Court from granting higher wages to redress any redistribution of factor incomes which is unfavourable to wage-earners. It would thus be necessary to repeal the clause requiring the Court to take the distribution of incomes into account.

Secondly, we could attack the problem by reducing the demand for private investment and luxury consumption of the higher-income groups. This could be done by increased taxation on profits and possibly by a capital levy. The appropriate wages policy would be again a policy of stabilization, but not necessarily in the sense that awards would be maximum wages. The important point here is that higher profit taxation would increase the workers' share of disposable income even though it may slightly reduce their share of factor income. If, however, the Court were to attempt to redress any slight change in factor incomes through higher wages, fairly large wage increases would be necessary, which may result in instability and the frustration of the attempt to work off inflationary pressures.

In our discussion we have deliberately omitted any reference to changes in the terms of trade, and in export and import prices. An examination of these subjects is beyond the scope of this paper. Suffice it to say that sharp fluctuations in wages without corresponding changes in export prices may force the Government into exchange depreciation, if guaranteed prices for butterfat, &c., are to be continued.

We are now in a position to answer the questions we have asked in the introduction. The first question was: Is the Court a suitable instrument for fixing general wage levels? Let us say immediately that in the past, in the absence of a conscious wages policy, the Court has in fact been the most important link in determining general wage levels. The test of the reasonableness of these levels was their acceptability to the workers and the employers. If all were content and there were few strikes, the levels could be regarded as well fixed. Thus, the Court was primarily an instrument for industrial harmony. However, as Governments evolve conscious wages policies which are laid down in regulations for the Court to operate, the difficulty of the Court's task is increased, because there may be conflicts between the requirements of the policy and the relative strength and pressure of employers and workers. Nevertheless, provided clear criteria are given to the Court, it is probably more suited for implementing a wages policy than, say, a Government Department.

We now come to the second question: Is it practicable and desirable for the Court to take relative income movements into account in making general wage orders? We have shown that under existing conditions it would need a 15 per cent. wage increase to raise the 1949–50 share of salary and wage earners to the average of the past eleven years. If controls are relaxed slightly more, an increase in wages may even lead to a redistribution in favour of profits. In any event, if income shares were taken into account, the fluctuations in wages would be violent. We are therefore of the opinion that the Court is unable to maintain a given factor income distribution unless there is (a) an extensive system of price controls, or (b) a complete control over the aggregate money measure of effective demand. Our conclusion, thus, is that under existing conditions the clause requiring the Court to take income shares into account is impracticable and undesirable.

8. SUMMARY

  1. The Economic Stabilization Regulations 1950 provide that in making general wage orders the Court of Arbitration shall, inter alia, take into account the “relative movements in the incomes of different sections of the community.” The Court can use national income statistics or factory production statistics to assist relative income movements.

On pages 1059–1067 we discuss how these statistics should be used. We conclude that private income before taxation and subject to the following adjustments is most suitable:—

  1. Deduct pay and allowances of the. Armed Forces.

  2. Deduct social security benefits and pensions.

  3. Deduct rental value of owner-occupied houses.

  4. Deduct changes in balances of primary produce stabilization accounts.

The figures disclose a slight secular fall in the share of wages and salaries. The fall was smallest during the period of stabilization from 1942 to 1949.

(2) National income statistics can be used to forecast—

  1. (a) The effects of a general wage increase on the distribution of factor incomes. We have shown that under existing conditions (November, 1950) it would require a wage increase of the order of 15 per cent. to give salary and wage earners only 1.7 per cent. more of our income total.

  2. (b) The effects of a general wage increase on inflationary pressures. Our statistics are not sufficiently developed for accurate estimates, but we have shown that a wage increase of 15 per cent. may increase inflationary pressures by about 1 to 2 per cent. of private income.

(3) In practice and under present conditions, New Zealand Governments have four different wages policies open to them. The choice of policy, which may have elements of several of the approaches summarized below, will depend largely on the political aims of the Government of the day.—

  1. The Government can leave wage policy entirely to the wage-fixing authorities by giving them no criteria on which to base their decisions. As these tribunals have no control over each other or over prices, they will not be able to formulate a coherent policy. General wage levels will therefore be determined by the relative strength for the time being of employers and workers. The criterion of the tribunals' effectiveness would then be the degree to which they are able to promote industrial harmony and avoid strikes and lockouts.

  2. The Government may desire to continue the status quoi.e., it may be satisfied with the present high level of employment with all its advantages and disadvantages. The most effective wages policy in this case would be one of stabilization roughly on the lines we have known from 1942 to 1949.

  3. If the Government wants to reduce or eliminate inflationary pressures and restore a buyers' market (and this involves ample stocks of motor-cars, &c., but also some unemployment), it has two methods open to it—

    1. It can remove controls and allow a price-wage spiral with prices inevitably leading the way. This would reduce the effective purchasing-power of the lower-income groups and in turn lead to a reduction in the propensity to consume of the whole community. The result would be a reduced demand for available consumer goods, but in the process the workers would be the losers. The success of such a policy depends on how far the Government and the wage tribunals are able to prevent wages rising.

    2. The Government could increase taxes on luxuries and on high incomes, reduce investment, and possibly impose a capital levy. The method has the advantage of throwing the burden on those most able to bear it. It may, however, result in inadequate capital formation and ultimately in reduced productive capacity. The appropriate wages policy would be one of stability.

  4. Finally, the Government could lay the main emphasis on the maintenance or achievement of a given distribution of factor incomes. We are satisfied that no plan of action for the Court can be relied on to do this successfully unless there exists either an extensive system of price control or complete control over the aggregate money measure of effective demand. As neither of these controls is likely to be imposed to a sufficient degree, very large wage increases will, under existing conditions, result in only small increases in the share of wage-earners. Moreover, a slight further removal of controls may bring about a reduced percentage for wage-earners whenever wages are increased. Our conclusion is that under existing conditions the clause requiring the Court to take income shares into account is impracticable and undesirable.

Part V—National Income and Real Measures of National Activity

1. INTRODUCTION

Our thesis throughout this paper is that national income statistics, properly applied, can aid towards a better understanding of economic problems. We also emphasize some of the cases where an ill-considered application to this source of information can produce misleading results. In this Part we hope to clear the air a little by discussing as generally as possible the relationships between various national income concepts and the real things of which they are so often taken as a measure.

The greatest hindrance to the application of the national income figures to many everyday problems is the fact that, in order to provide a common basis of measurement, they have all to be expressed in money. In New Zealand they are expressed in terms of the New Zealand pound, which we have seen change in value by as much as 20 per cent. overnight in terms of sterling. Changes in terms of United States dollars or of gold have been equally startling. There is, however, no need to bring in overseas comparisons to realize the limitations of our national income figures expressed in money. The New Zealand pound would pay an average worker's wages for two days in 1935, but for only one day in 1950. It would perhaps feed his family for five days in 1935, but for less than three days in 1950. Changes in the value of the money unit will therefore affect the meaning in physical terms of the national income figures. They will, moreover, affect the validity of comparisons between national income items, because they will affect different items in different ways.

There is no real escape from this problem unless we can find something other than the money unit which will bring all aspects of the economy together in one picture. But if we are to get the fullest value out of the national income figures we must make a very careful study of the relationships between the money measures of different aspects of the national economy, as shown in the national income estimates, and their physical or real measures. This means that we are concerned primarily with the relationships between the money flows which are measured by the national income estimates and the levels of activity which give rise to them.

In this part some of the relationships are discussed. The procedure adopted is to take each national income item in turn and see what corrections would have to be made to it to make it a good indicator of activity levels. Sometimes there is no universally applicable correcting factor, but each industry group has to he studied and the best practicable measures of a given relationship applied piecemeal to the industry subdivisions of the national income item. However, it has seemed to us to be well worth while to set down as clearly as possible the relationships between national income items and activity levels, especially as we have been able in the process to highlight a number of the weaknesses in the estimates and some of the pitfalls for the unwary.

Reference is frequently made to volume of production, volume of sales, volume of consumption, and so on. It is apparent that, in practice, most of these volume measures will have to be expressed as index numbers, but to aid the reasoning used here they are usually referred to as if they were true measures of volume. For example, the value of the output of a given sector of industry is taken as the product of its volume of output and the selling price per unit, even though the volume may be expressed, in practice, as an index number. The method of expression used merely gives neater relationships between money flows and volumes. There is no difficulty is substituting the index for the volume when using the relationships which are developed here.

2. WAGES, EMPLOYMENT. AND PRODUCTION

In most national income tabulations the national wages bill is called “salary and wage payments.” Its relationship to other types of income is indicated in the chart now given, which brings together several ways of classifying the types of income which make up national income.

NATIONAL INCOME (ALTERNATIVE CLASSIFICATIONS ACCORDING TO INCOME SHARES)

Theoretical Subdivision (a) (Following H. P. Brown).Theoretical Subdivision (b) (Following Richard Stone).United Nations Classification.New Zealand Classification.
Wages SurplusIncome accruing to factors of production—Income shares—Salary and wage payments.
 (a) Labour(a) Wages, salaries, &c.Pay and allowances of Armed Forces.
 (b) Management(b) InterestRental value, owner-occupied houses.
 (c) Enterprise(c) Operating surpluses and net dividends received from the rest of the worldOther personal income.
 (d) PropertyCompany income. 
   Government and local authority trading income.
   Lump-sum payments from United Kingdom Government.
   Less public debt interest paid in New Zealand.
National incomeNational incomeNational incomeNet national income at factor cost.

There are two obvious ways of linking salary and wage payments with activity levels. Firstly, if average salary and wage payouts are known, the national wages bill can be expressed as the product of the number of salary and wage earners and the average salary and wage payout per annum. This may have comparatively little significance when done in total for the whole economy, but if the operation is carried out separately for each group of industries it provides a valuable means of reconciling national income estimates against employment statistics available from other sources, and throws new light on those groups of industries where statistical information is poor.

From the numbers employed in each group of industries, which we can assume to be reconciled against the national wages bill, it is then possible, by applying a measure of volume of output per man-year, to link through to what is probably the most significant activity level, the volume of production of goods and services. The difficulty here is that the approach to production levels from the national wages bill takes us into the servicing industries, where in most cases measures of volume of production are not easily available. The approach therefore leads us into machinery difficulties, but it has the advantage that we are unlikely to fall into the very common error of ignoring the contribution to production made by servicing industries. If all else fails, we can find a way round the machinery difficulties by making productivity estimates for industries where statistics are inadequate, on the basis of known figures in similar industries; but for most purposes it is sufficient if we can find some reliable indicator of changes in productivity, provided a convenient absolute figure is available, as a starting point.

The second approach to activity levels from the national wages bill by-passes the consideration of employment levels. By studying industries in groups it is possible to obtain for most groups a relationship between salary and wage payouts and profits (more strictly, surplus). It is then possible in many cases to find the relationship between profits and production volumes, or between wages plus profits and production volumes. Once again we will run into difficulties in stating production volumes for servicing industries; but by using this approach and making comparisons with similar industries it is possible to derive reasonable estimates for production volumes in industries where there is no satisfactory direct measure of real levels of production. This may be no small achievement. Production volumes, when taken in aggregate over a number of dissimilar industries, are difficult to measure. It is not easy to add together, say, cakes of soap and bales of wool except in money terms. Probably some approach such as those indicated above would provide a better means of arriving at production volume indicators than is used in existing volume of production indices. We are not directly concerned with that here, except to note that published volume of production indices all exclude a substantial portion of the contributions to production made by servicing industries. There is therefore no published index of volume of production which is comparable with the national wages bill in its industrial coverage. This is an important point to remember if fallacies are to be avoided.

When we link the national wages bill to production in either of the ways indicated above, it is apparent that we are treating the aggregate of salary and wage payments as some sort of index of the effort made by workers in the production of goods and services. Salary or wages totals do not, of course, measure all effort which results in the production of goods and services, but only that made by recognized salary or wage earners. If similar types of effort are made by persons other than recognized salary or wage earners, it is apparent that we will not be able to develop satisfactory relationships between effort and the resulting production unless we take account of thorn. What we are concerned with at this point is a measure of the effort of persons who contribute their own services to the production of goods and services in just the same way as salary or wage earners, except that their contractual position is different; they are not on the pay roll. The type is indicated quite well in the idea of a working proprietor. It is possible to improve the measure of productive effort given by the national wages bill by making an arbitrary correction for the Salary or wage which might have been drawn by each proprietor had he been on the pay-roll. This correction enables relationships between effort and production to be compared between one industry and another and in the same industry over time. Without it, such comparisons may be invalid because of the fact that the proportion of working proprietors to salary and wage earners often varies considerably between different industries and even in the same industry at different, time points.

It should be borne in mind that the equivalent of the salary or wage earnings of working proprietors will already be included in one or other of the income items in the national income estimates. In the New Zealand figures it is included in “Other personal income.” If, in interpreting the figures, the salary and wage figure is adjusted as suggested, a corresponding correction should be made to “Other personal income.”

The New Zealand estimates of national income show “Pay and allowances of Armed Forces” separately from salary and wage payments. In principle, there is no more reason for this than for showing separately, say, “pay and allowances of Police Force.” The only real argument for separation of the Armed Services is that the very rapid changes in and out of the war period warrant its being pinpointed for special attention. Care is needed, however, in studying the figures which remain. Certainly, by peacetime standards, the inclusion in salary and wage payments of the large figures for wartime pay and allowances distorts the relationship between salary and wage payments and other national income items. But the requirements of war distort, the civilian economy in any case. If pay and allowances are excluded, what remains is also a distortion by peacetime standards. So long as this is remembered, no confusion can follow from showing civilian salary and wage payments separately from Armed Services pay and allowances.

If the above remarks are kept in mind, the following generalizations can be made about the national wages bill.

Changes in the national wages bill:—

  1. When corrected for changes in average annual salary and wage payout,—give changes in number of salary and wage earners.

  2. When corrected for changes in average salary and wage payout,

    And for changes in numbers of working proprietors,

    And for changes in volume of output per man-year,—gives changes in volume of production of goods and services.*

  3. When corrected for changes in the relationship between wages plus surplus and wages,—

    give changes in net value of production.*

  4. When corrected for changes in the relationship between wages plus surplus and wages,

    And for changes in the relationship between wages plus surplus and volume of output,—

    give changes in volume of production of goods and services.*

The corrections suggested would in practice be applied separately for each industry group, the national wages bill having first been subdivided into industry groups. In some industry groups the correcting factor listed may not be readily available, but, since we are interested in changes rather than in actual amounts, any reliable indicator of its movements will be equally appropriate.

Some of the relationships stated here may appear platitudinous. The purpose in this Part is to seek out for various national income items—

  1. The relevant volume or real measure.

  2. The price or other correcting factor which connects the volume and the money flow.

By stating the simpler relationships fully, as we have done, they become readily available for use in connection with later developments of other items.

Relationships between the national wages bill and real wages or living standards are deferred for discussion under national expenditure headings.

3. WAGES AS A SHARE OF NATIONAL INCOME

In the preceding section we have examined the national wages bill, and seen that it is possible to trace relationships between it and physical levels of employment, of productive effort, and of production. We have now to see if similar relationships apply when national income is taken as a starting point.

One approach to national income, the income approach, divides national income into income shares. The national wages bill is one such share, the share going to workers, or, more strictly, to salary and wage earners.

The wages and salaries included in the national wages hill are paid to workers because of their personal services in assisting with production. This statement is universally true, provided we regard production as including all types of goods and services. If, taking an equally wide view of production, we add in payments made in return for use of capital and for other types of contribution to the productive process, we arrive at national income by an income shares approach. Thus, all of national income is assumed to be derived as a reward for contributions made, by way of personal service or otherwise, to the productive process. That being so, we would expect to meet few obstacles in developing relationships between national income and physical levels of production. Actually it is more difficult to do this than to work directly from the national wages bill.

* Incomplete coverage; see page 1073.

For many purposes an approach to levels of production from the national wages hill is sufficient. In any investigation where this is so we can use the other items in national income merely as a cheek to see if any aspects of production have been missed in the wages approach. However, as we shall see, an approach through wages or employment throws very little light on some quite large portions of national product where the part played by labour is comparatively small.

When we look at salary and wage payments and at other rewards of those who contribute to the productive process, we are subdividing national income according to income shares. In the very broadest sense there are only two types of income share, wages and surplus: but in this sense, surplus includes such items as interest and rent in addition to what is usually known as profit. We can say, following Mr. H. P. Brown, that the activities of productive enterprises can be regarded as being the purchase and sale of goods and services, the payment of wages, and the obtaining of a surplus. We can, moreover, apply this concept to all types of production of goods and services by taking a sufficiently broad meaning of the terms used. Government-provided social services, for example, will fall within it if we regard the free provision of such services as a special type of sale (see also pages 1083–85). Small traders employing no labour can be covered if we leave room in our minds for the wage payment to be nil; or we can adjust the wage payment for working proprietors, as discussed above.

Now, when we look further at this description of activities, it is apparent that the idea of income shares is contained in the words “the payment of wages and the obtaining of a surplus” and that the idea of a volume of production is contained in the words “the purchase and sale of goods and services.” National income is made up of income shares. If we want to connect national income with volume of production, it becomes apparent that we must consider volume of production as allied to the purchase and sale of goods and services and not merely to the sale of goods and services.

Taking everyday meanings of words, the volume of production of a car-factory might be assessed on the basis of the number of new cars leaving the factory. It is, however, obvious that the whole car was not made in the factory. The metals, fabrics, &c., were produced elsewhere. Reservations of this sort are relatively unimportant if we are considering changes in volume in the same factory over a short period when there are no great technical changes; but they are very important if we are considering a larger number of factories or even the same factory over a long period of time. Then changes in quantities of goods and services bought by producers are just as relevant to movements in production volumes as changes in quantities of goods and services sold. As an example, a factory which makes a thousand cars starting from sheet metal and castings can surely be credited with a considerably larger volume of production than one which produces a thousand cars by assembling imported car parts. Now, if we use measures of production volumes which do not take account of these differences, we cannot expect national income figures to line up with them. Under such circumstances, the volume of production of these two factories (or if it may be of the same factory at two points of time) would then be shown as equal; the income shares would obviously be different. The second factory pays more for the goods and services it uses in production and is therefore left with a smaller income to distribute.

Thus, if we are to compare national income figures with measures of production, it must be with net volumes in the sense we have just discussed. In the previous section we found that some of the existing measures of production volumes were inadequate because of the exclusion of services. We will have to watch, also, to see that net measures are used.

Coming back to look further at income shares as contained in the words “the payment of wages and the obtaining of a surplus,” we can see that in those industries where the wage element is important the approach to production volumes through the national wages bill is likely to be better than that through national income, if only for the reason that surplus will on occasions be negative.

In the New Zealand estimates the following note to the items “Other personal income” and “Company income” is relevant: “No allowance has been made for negative income or losses of previous years allowed as a set off against current income for taxation purposes.” In effect, taxable income is the basis for the estimates. Salary and wage payments, though they may fluctuate considerably, will be related more closely to production volumes than will surpluses, and will never be negative.

Unfortunately, the approach through wages does not open up the entire field of production, if we fire regarding production in the wide sense that is necessary to secure comparability with national income. We have already had to make provision for the fact that there are large numbers of people who give their personal services in furthering productive processes but are not on the pay-roll as salary or wage earners. There are also some aspects of the production of goods or services in which there is little or no element of personal service involved. An example of this is the inclusion in the New Zealand estimates of the item “Rental value, owner-occupied houses.” Rental value of other dwellings is of course, included in the national income total too. It will have been taken in as part of “Other personal income.” of “Company income,” and of “Government and local authority trading income.” Irrespective of how it is brought into the figure, rent of dwellings is a payment not for personal services, but for property. The property-owner supplies the property and is paid for that. Except to a very insignificant extent, he does not supply his personal services. When we consider also that the figure for rental value of owner-occupied houses in Table 3 of the “New Zealand Official Estimates of National Income and Expenditure” is taken after deduction of depreciation, repairs, and maintenance, &c., it is quite apparent that this item has no relationship at all to current personal services. In fact, if we keep to everyday meanings of words, it has no relationship to activity or production levels during the income period. No amount of adjustment to current measures of employment or of personal effort will give any indication of the level of dwelling rents; there is no connection. Yet, in the sense in which national product is used in national income estimates, dwelling rents are a part of that product.

The same may be said of interest payments other than those on capital to be used in conjunction with personal effort in the productive process. Sonic of such payments are excluded from the national income estimates as transfer payments—for example, the New Zealand estimates exclude public debt interest paid in New Zealand. We will not dwell at any length on interest payments, because many aspects have already been covered by Mr. H. P. Brown in his paper read before the Australian and New Zealand Association for the Advancement of Science in 1949.

Again, dividends received from abroad represent a payment, for the use of property with which little or no personal effort of citizens of the lending country is associated.

These considerations make it apparent that, if we want to develop relationships between national income and levels of production or activity, we must either exclude payments of this type before developing our relationships or else revise drastically our conceptions of production and activity.

It soon becomes apparent that the first of these alternatives needs some modification to make it capable of practical application. We cannot by development from any of the usual classifications of national income items split out all those types of production where there is a reward for making available property which is not associated with a reward for making available personal services. Even if we could, there would still remain a considerable portion of production where personal services feature, but are almost insignificant compared with the property element.

In practice, classifications of national income by income shares show, subject to some reservations which we have already made, rewards for the personal services of salary and wage earners separately from surplus. They do not, however, show how much of the surplus was a reward for the personal effort of persons other than salary and wage earners. Therefore, our attempt to segregate personal services by classifying wages and salaried separately from surplus, even when we make all practicable adjustments such as that for the services of working proprietors, remains to a large extent arbitrary. It does not give any very definite indication of the true reward for use of personal effort in the productive process as compared with the use of property. The difficulty is a fundamental one, and one, moreover, to which some working solution is of first importance, as we shall see.

Richard Stone, in his memorandum printed as an appendix to the United Nations publication, “Measurement of National Income and Construction of Social Accounts,” says that the total of national income or product when valued in terms of money “is equivalent to the income accruing to the factors of production—i.e., labour, management, enterprise, and property.” Now, in their pure theoretical form, labour, management, and enterprise are all forms of personal service. In practice, however, there are no clear-cut divisions between the rewards going to labour, management, enterprise, and property except in a limited range of cases. Generally speaking, we associate salaries and wages with personal effort only. Salary and wages, as tabulated in our national income statistics, will include the rewards of those who are contributing no more than their labour. It will, however, include a limited number of cases where recipients are being rewarded partly for labour and partly for management. There will be some cases where the reward is partly for labour and partly for enterprise, and others where labour, management, and enterprise all feature. However, we are reasonably safe in assuming that our salary and wage figure is a reward for personal services of some kind and not for property.

With other forms of personal income the position is different. Dividends, for example, usually include an element of reward for enterprise, a reward for property, and perhaps a very small reward for management. Here we have personal service and property rewards intermixed and, except on some arbitrary basis, inseparable. The same may be said of many types of interest payment. Again, profits of private traders will generally include elements of reward for management, for enterprise, and for property: not infrequently they contain some labour reward also. The personal service portion and the property portion are inseparable except on some arbitrary basis. The rewards for management and enterprise cannot be assessed accurately from national income figures.

Thus, the approach from income shares is unlikely to give any theoretically accurate division between the rewards for personal effort and the rewards for property. This is a very important conclusion in view of the importance that has been attached in New Zealand recently to changes in the proportions of national income going to salary and wage earners.

The real interest of the community, as distinct from some portion of it, must be associated not only with salary and wage earners, but with all persons who render personal services. If the proportion of national income going as a reward to personal service falls, as compared with the proportion going as a reward to property, the result is to discourage human endeavour. We have seen, however, that personal service is associated with many types of surplus, as well as with salary and wages, although it is probably in its purest form in salary and wages. Therefore, we must be cautious in fixing any theoretically correct proportion of national income to go to salary and wage earners. There is no reason to expect continuity in the proportion going to them, unless the structure of industry is such that salary and wage payments move proportionately to rewards for personal service.

Now, when we look at the New Zealand figures we do not find any very satisfactory means of separating property rewards from personal service rewards. We do find, however, that in so far as property rewards are separable they have lost ground proportionately to movements in other items. For example, in Table 4 of the “Official Estimates of National Income and Expenditure.” the item “Interest, rent, &c.” (part of “Other personal income”) has risen from £15 million in 1938–39 to only £16 million in 1949–50, as compared with rises of over 100 per cent. in most other items. True, this comparative lag in interest and rent has been influenced considerably by Government policy; the fact remains that it has been associated with a move from substantial unemployment, through full employment, into extreme labour shortage. It is inadvisable to overstress this, because there has been no real attempt in our national income estimates to separate property rewards from personal service rewards. However, it seems obvious that personal service rewards have gained ground.

This, at first glance, appears to be in direct contrast to the picture we have already formed of salary and wage earners losing ground. A little reflection will show that the two are not incompatible. We have merely found something to stress the point already made, that salary and wage payments do not comprise all the rewards for personal service.

Using Richard Stone's classification of national income into labour, management, enterprise, and property, it seems that New Zealand labour has lost ground to management and enterprise rather than to property. When we consider that management and enterprise have power which neither labour nor property has, to fix levels of production, it is clear that here lies a very probable cause of our existing state of over-full employment.

The importance of further investigation in this field is obvious. We believe it would be worth while to study changes in labour, management, enterprise, and property rewards in New Zealand, and the influences of those changes on production levels.

4. NATIONAL INCOME AND PRODUCTION LEVELS

We return to our problem of relating national income to activity levels. Our somewhat theoretical discussion has made it obvious that we will not be able to make reliable estimates of rewards for personal effort, so that, even if we decide to ignore those sectors of production and activity which are not associated with personal effort, measurement remains difficult. In the main, we are thrown back on salary and wage payments as the only item which we are reasonably certain excludes elements of property reward. The shortcomings of salary and wage payments as a measure of effort need to be borne in mind, but it will be seen that in spite of them we can, given sufficient versatility, develop satisfactory relationships. Salary and wage payments can be adjusted as before for equivalent earnings of working proprietors, and the word “wages,” when used in the next few paragraphs, means salary and wage payments so adjusted.

We can start by dividing national income, which can he called wages plus surplus into industry groups. The industry subdivisions of net national output at factor cost can be taken as a basis, though a much finer subdivision will generally be needed. We then select those groups in which wages are above some given proportion of wages plus surplus, and relate activity to wages in those industries. For those groups we can say that:—

Changes in wages plus surplus—

  • When corrected for changes in the relationship between wages and wages plus surplus,

  • And for changes in average annual salary and wage payout (reciprocal),

  • And for changes in volume of output per man-year,—

give changes in volume of production of goods and services.

The groups where the wage payment is comparatively insignificant can be treated each on its merits. For some we can work direct and say that—

Changes in wages plus surplus—

  • When corrected for changes in the relationship between volume and production and wages plus surplus,—

give changes in volume of production.

For others we might prefer to say that the concept of a volume of production is not relevant. It would then be necessary to concede that a certain portion of the national income had no counterpart in production volumes or activity levels.

If, however, we are prepared to revise our concepts of production and activity so that we can find a counterpart, in production volumes and activity levels for all parts of the national income, it is possible to move over entirely to a national product approach.

We then start from the industry subdivisions of net national product at factor cost, and our generalized relationship is:—

Changes in net national product at factor cost—

  • Corrected for changes in the relationship between volume of production and net national product at factor cost,—

give, changes in volume of production of goods and services.

This would in practice be applied by industry groups. The subdivision over industries of net national product at factor cost is the same as the subdivision of wages plus surplus, and of course both, when totalled for all groups, are equal to national income.

Some alternative classifications of net national product are given on the next page.

NET NATIONAL PRODUCT (ALTERNATIVE CLASSIFICATIONS BY INDUSTRY GROUPS)

United Notions Classification.First Revision. Treating Net Products as Being Reduced also by the Amount Paid by Each Industry Group to Overseas Factors of Production (Including Dividends and Withdrawals).Second Revision. Throwing All Payments to Factors of Production Into the Industry Groups of the Factors.Third Revision. Breaking up Into Finer Industry Groups.

* Other similar items omitted to save space.

Net products—

  (a) Productive enterprises—

    (i) Agriculture

    (ii) Mining

    (iii) Manufacturing

    *

    (ix) Net rentals

  (b) Banks and other financial intermediaries

  (c) Insurance companies and societies and social security funds

Payments to factors of production by final consumers—

  (a) Persons

  (b) Public collective providers

Net income received from the rest of the world

Net products—

(a) Productive enterprises—

    (i) Agriculture

    (ii) Mining

    (iii) Manufacturing

    *

    (ix) Net rentals

  (b) Banks and other financial intermediaries

  (c) Insurance companies and social security funds    Net products—

Payments to factors of production by final consumers or by overseas users—

  (a) Persons

  (b) Public collective providers

  (c) Overseas users (including dividends and withdrawals)

Net products—

  (a) Productive enterprises—

      (i) Agriculture

      (ii) Mining

      (iii) Manufacturing

      *

      (ix) Net rentals

  (b) Banks and other financial intermediaries

  (c) Insurance companies and social security funds

      ..

      ..

      ..

      ..    Net products—

    (a) Meat processing, &c.

  (b) Fruit and vegetable preserving.

  (c) Dairy factories.

  (d) Grain-milling.

  (e) Bread-bakeries.

  *

  (n) Hotels and catering

  (o) Laundries, &c.

  (p) Barbers, beauty shops, &c.

  (q) Domestic service.

Net national product at factor costNet national product at factor costNet national product at factor costNet national product at factor cost.

5. NATIONAL PRODUCT

The introduction of the national product figures opens up new possibilities. If for each industry we take the net product and divide it into the various types of factor reward, we can combine the advantages of both the national product and the national income classifications.

The net products with which we start will sum for all industries, to net national product at factor cost: the salary and wage payments, which are split out, will sum to the national wages bill, and similarly for other items.

It is apparent that from a double tabulation of this sort we can develop relationships to physical levels of activity and production from whatever is the most convenient point in the production analysis of each industry. In one industry, the most satisfactory relationship may be obtained by studying production per employee and applying it to the number of employees. In another, the relationship between net output in money terms and net volume of production may he more suitable: in another, the relationship between materials used and volume of production; and so on.

We can, if necessary, make such subdivisions within individual industries as are best calculated to enable the most stable relationships to be applied, provided we keep a careful record of how much of net product has been accounted for in each subdivision.

Most of the correcting factors involved in this composite approach have already been discussed. The approach will obviously leave a much smaller residual of net output for which it is necessary to make arbitrary assessments of related activity and production levels.

6. A VOLUME OF PRODUCTION INDEX COMPARABLE WITH THE NATIONAL INCOME ESTIMATES

The method set out in the preceding paragraph probably gives the best practical way of forming volume of production indices comparable in their coverage to the national income figures. The procedure would be:—

  1. Prepare a production analysis for all sectors of industry for which suitable statistical information is available. These analyses need not all take the same, form, but each must show as one item the net output (or wages plus surplus) of that sector of industry.

  2. Fix movements in production volumes in each sector by reference to volume statistics if possible; if not, fix by applying correcting factors to whatever item in the production analysis is likely to be most closely related to production volumes.

  3. For those sectors where there is no statistical basis for a production analysis, make arbitrary assessments of production volumes, based as far as possible on known figures for similar industries.

  4. Reconcile the money value of net output accounted for in all sectors against net national product at factor cost (national income) to make sure that all sectors have been brought in.

  5. Weight movements in production volumes in each sector according to the money value of its net output in the base year.

Opinions may differ as to the usefulness of a volume of production index with so wide a coverage as this. However, by formulating it we can at least realize the real meaning of the word “product” in the term “net national product at factor cost.” We can see also how deep is the fallacy in relating national income figures to the usual type of volume of production index.

7. NATIONAL PRODUCT, PRICKS. AND VOLUME OF PRODUCTION

So far we have been concerned mainly with the national income and national product concepts. We have developed the idea of a volume of production index comparable with the national income, by reference to the usual income and product classifications. It is obvious that if we have a money measure of national product and a volume measure of national product, there must be some sort of price relationship between them. To see just what this relationship is we will have to bring in the national expenditure concept.

Let us look again at Mr. H. P. Brown's description of the activities of productive enterprise as being the purchase and sale of goods and services, the payment of wages, and the obtaining of a surplus. As before, we can make such extensions to the meanings of the words as are necessary to enable it to apply to the whole range of national output.

Splitting the concept into two parts, it becomes apparent that the idea of purchase and sale of goods and services introduces, from the point of view of a producer, considerations of net revenue, whereas the idea of payment of wages and obtaining a surplus introduces considerations of net costs. The classification of net national output by industries gives us a link to national expenditure if we regard net output of each industrial group as derived from the purchase and sale of goods and services. It gives us a link to the national income classification into income shares if we regard net output of each industry as comprising wages plus surplus. The first of these links we have used to develop the relationships already discussed. The second will now be developed to see if it throws any further light on relationships between money values of net output and levels of activity or production.

If, as a first step, we look at sales of goods and services by various industrial groups and ignore their purchases, it would appear that we have only to take account of changes in price levels to be able to relate the money measure to the real measure of sales. The difficulty is that prices as generally quoted, and as they find their way into price indices, have to cover indirect taxes (less subsidies) and depreciation allowances. They are thus not comparable with net national income (or product) at factor cost, which, as these items are not factor payments, is taken net of them.

Prices as generally understood are then relevant not to net national product at factor cost, but to gross national product. The relationship between the two national income concepts is illustrated by the following figures for 1949–50 taken from the New Zealand estimates:—

 £(million).
Net national income (or product) at factor cost473
Plus indirect taxation50
Less subsidies−15
Plus depreciation allowances29
Gross national product (= gross national expenditure)537

All we can say so far is that gross national product is related to activity or production levels and that price levels are somehow concerned in this relationship. We are up against two difficulties. The first is that no figures analogous to gross national product are available classified by industries. The second is that we have still to take account of goods and services purchased for use in the productive process.

8. NATIONAL EXPENDITURE AND PERSONAL CONSUMPTION

As a first approach we can avoid the first of these difficulties by moving over to a national expenditure classification, which is not usually made on an industrial basis. By doing this we also avoid considering the price levels at which goods and services pass from one New Zealand industry to another. A price increase in such goods results in a loss of profits to the purchasing industry and a corresponding gain in profits to the selling industry. When all industries are taken together, the loss and the gain cancel out, so that the price change has no effect. This cuts out a very considerable portion of goods and services purchased by New Zealand producers. We would expect, in fact, that the only purchases of goods and services by producers which will affect the relationships between gross national product or expenditure and volume of production will be purchases from overseas. We can check up from the national expenditure approach to see if this is true.

In the New Zealand estimates, gross national expenditure is divided into four items, thus:—

 1949–50, £(million).
Personal consumption345
Current Government expenditure on goods and services71
Gross capital formation in New Zealand116
Net overseas investment4
    Gross national expenditure537

“Personal consumption” is to some extent a misleading term. It is an expenditure item which relates not to goods and services consumed, hut to consumption goods and services purchased by individuals and non-profit-making bodies. Income received in kind as part of the reward for labour or other personal service related to production is included. Goods and services received free from Government social services are excluded.

Thus, we cannot derive any measure of volume of goods and services consumed, or of real living standards, from the national income item “personal consumption” without taking account of Government services which are made available free.

The volume measure which corresponds to “personal consumption” is the volume of goods and services purchased by consumers plus the volume of income payments in kind. The theoretical connection between this volume and personal consumption is a price relationship which takes account of the prices of all goods and services purchased by consumers and of the values set on income payments in kind. In practice, we have no price index which exactly expresses this relationship.

Of the Consumers' Price Index, which has so frequently been linked with the item “personal consumption,” one could well quote the words from the relevant passage in the “New Zealand Official Year-Book”: “The index must be used intelligently, not forgetting the standard and pattern of living defined by the regimen, the varying costs of maintaining which the index is designed to measure.” To quote further selected passages: “It will be seen that the index is by no means confined to the bare necessities of life… . Nevertheless, the index does not cover, and does not purport to cover, all items of household expenditure. It was felt that some line must be drawn to exclude what might be regarded as luxury spending … It would be correct to state that approximately SO per cent. of annual personal (including household) expenditure at retail prices is represented in the Consumers' Price Index.”

Any index is constructed for a purpose. Its regimen and the weighting pattern express that purpose. The Consumers' Price Index was not intended to apply to the item “personal consumption.” If we considered its weighting pattern only, it would, however, be suitable for that purpose. The Year-Book says: “… the weights are based on aggregate consumption in New Zealand of the various commodities and services represented in the index.” It would be sufficient then for the regimen to comprise a good cross-section of the expenditure covered by “personal consumption” to make the index applicable to this national expenditure item. Unfortunately, the exclusion of luxury items means that, while the regimen may be a good cross-section of expenditure of “the model household,” it is a biased selection from the expenditure items included in “personal consumption.” Price movements in the excluded luxury items and in household durable goods, which are weighted for replacements only, may be different from those in other household expenditure. It is therefore inadvisable to use the Consumers' Price Index in conjunction with “personal consumption” unless allowance is made for exclusions such as these. This is no reflection on the usefulness of the index when applied to the model household. All that is necessary is to remember that “personal consumption” does not represent the sum of expenditures of a group of model households.

We can now make the following generalization about personal consumption:—

  • Changes in personal consumption-Corrected for changes in prices of goods and services purchased by consumers (including income payments in kind),—

give changes in the volume of goods and services purchased by consumers plus the volume of income payments in kind.

The price correction could he an index constructed from first principles, or it could be the Consumers' Price Index adjusted for excluded items.

It should be specially noted that existing indices of volume of goods available for use in New Zealand exclude services and are therefore not comparable with any national expenditure items. In any event, we have already noted that “personal consumption” refers to consumers' purchases, which is different in coverage from consumption or from goods available for use because of the exclusion of Government-provided free services.

9. GOVERNMENT EXPENDITURE

This last point is of particular interest in that it raises a distinction similar to that between real income and living standards. Real incomes are generally measured in terms of the volume of goods and services the incomes will buy, whereas living standards have reference to the volume of goods and services consumed. The influence of Government-provided free services in separating these two standards is obvious. Take as a particular example, and one of considerable practical application in many countries over recent years, the effect of a Government taking over and providing free some of the services which have previously been provided and sold by private enterprise; If the cost of provision of the services is the same as before, but the costs have now to be met by taxation instead of by revenue from sales of the services, the effect will be to decrease both “personal consumption,” and real incomes because both these are measured in terms of purchases of goods and services. On the other hand, the change does not reduce, and may even increase, national expenditure and living standards, which are both measured in terms of use of goods and services.

Obviously, then, recorded movements in real incomes or in “personal consumption” can easily be misleading if free Government services are not taken into account. This is a matter which is frequently overlooked in making studies of changes in real wages.

When we move over to examine “current Government expenditure on goods and services” it becomes apparent that, while then; may be agreement on the need for adjustment for Government services in considering real incomes and living standards, there may be considerable difficulty in deciding just how far this should be taken. For example, while there is a clear-cut case for regarding expenditure on such things as health, education, and non-monetary social security benefits as adding to living standards, there may well be doubt about the effects of expenditure on war.

A break-up of “Government expenditure on goods and services” is given in Tables 7 and 8 of the “New Zealand Official Estimates of National Income and Expenditure.” Trading Departments are excluded. They are, in fact, treated throughout the national income estimates in exactly the same way as private trading concerns, except that their profits pass to the Government sector, and their losses have to be met by that sector.

With non-trading Government undertakings, the idea of profit or loss does not arise. In general, the costs of running all such undertakings are lumped together, and the total is met by raising a sufficient revenue by taxation or by other means. The revenue so raised has no necessary direct relationship to the value of the service given, and no individual Department is in a position to match its revenue against its costs as a basis for calculation of profits or losses.

There is a widely accepted national income convention that goods and services produced by non-trading Departments should be valued at their cost of production.* In the national product figures this means, in practice, that to express the money value

* The more usual way of expressing tills is to say that such Departments are regarded as final consumers. In purely money terms, the effect in the national income estimates is exactly the same as we have arrived at here by regarding them as producers. In terms of real things, the results may be different. We regard the method used here as more suitable for any analysis in real terms.

of the contribution to net national product made by each non-trading Government concern we merely set down the cost of running the concern and deduct from it the costs it incurs in obtaining goods and services from other concerns. Since the cost of running each concern can be broken down into wages, salaries, and other factor payments plus the cost of obtaining goods and services from other concerns, this means that the net output of the concern is taken as equivalent to its expenditure on factor payments. In effect, it is taken as wages and salaries plus surplus, just as for private traders, except that surplus has a more circumscribed meaning, and in particular does not include profits.

The treatment of Government services in the income shares approach is then obvious. The factor payments included in net output of non-trading Departments are split up and included as part of the income share of each income group. Under national expenditure, however, we have to consider the expenditure of non-trading Departments rather than their net output. We are concerned both with their wages and salaries, &c., and their purchases of goods and services.

Thus, the expression “current Government expenditure on goods and services,” used in the New Zealand and other estimates, is misleading. We are not concerned with the goods and services the Government buys, but with those it supplies as a collective provider. The two are not necessarily equal either in value or in volume. What we really need to measure is expenditure incurred by Government as a collective provider of goods and services. This is in fact what the New Zealand figures cover, as is obvious on referring to Tables, 7 and 8 of the estimates.

Now, when we look at the volume of goods and services supplied by Government it is apparent that we need to make distinctions between the national product and the national expenditure approaches in much the same way as when we are concerned with money measures. In the national product approach we are concerned, in both value and volume assessments, with goods and services supplied by the Government collective providers, taken net of goods and services purchased. This is necessary because the goods and services purchased by them have already been taken into national product as part of the net product of the concerns which supplied them. Government collective providers, in this approach, stand on the same footing as private traders. The relationships already established between national product and volume of production need no special modification to bring in Government services, though we may find difficulty in assessing volumes of some services.

In the national expenditure approach, on the other hand, we are concerned with a gross value—i.e., the cost of operating such services—or volume of Government collectively provided goods and services. There is no risk of double counting in taking such a figure. The only other national expenditure item which covers consumption goods and services is “personal consumption.” which, as we have seen, relates to goods and services purchased by consumers. By adding in a gross figure for the Government-provided goods and services, we are merely adding together the value or volume of goods and services supplied for citizens by the Government and the value or volume of services purchased by citizens out of their income. The sum gives measure of all goods and services consumed, with no double counting. The relevance of this measure to living standards and, in contrast, the relevance of the item “personal consumption” to “real incomes” have already been discussed.

We are now in a position to generalize about Government-provided goods and services, thus:—

  • Changes in the item “current Government expenditure on goods and services”—

    Corrected for changes in operating costs per unit of output in Government and local authority non-trading departments,—

give changes in the volume of goods and services supplied by Government and local-authority non-trading Departments.

While this statement may be theoretically correct, it is important to note that there are few non-trading Departments for which reliable indicators of volume of output or of operating-costs per unit of output are available. In many, however, we have a good indication of changes in volumes and costs, which for many purposes is sufficient. It should be noted that changes in operating-costs per unit are compounded of changes in rates of factor reward, notably labour rewards, changes in purchase prices of goods and services, and changes in administrative efficiency.

Remember also the unsolved question of what to do about measures of the volume of service corresponding to expenditure on such things as war. Certainly very great caution should be exercised in adjusting measures of living standards for this type of Government service.

However, there is a cut-and-dried case for inclusion of services such as health, education, and non-monetary social security benefits in measures of volume of consumption and of living standards. This is quite sufficient to justify a further search for real measures of achievements of non-trading undertakings. The investigation could be allied with much needed efficiency audits in many Departments.

10. CAPITAL EXPENDITURE

We have now traced through all the expenditure on consumption goods and services, whether by final consumers or by public collective providers. To complete the picture of national expenditure we must now look at expenditure on goods which are not consumed during the current period but are added to the nation's capital.

The first relevant item in the New Zealand estimates is “Gross capital formation in New Zealand.” This is the gross amount expended on durable capital goods in New Zealand. It includes capital improvements—for example, land improvement by irrigation. The figures, are taken gross before deductions have been made for depreciation. (It will be remembered that depreciation allowances were added to national income to arrive at gross national expenditure.)

The result is that we can find a direct price relationship between expenditure on durable capital goods and the volume of capital formation. We have, however, to extend the idea of price to include the total cost of capital goods or improvements which are not actually sold on the market, but are produced by their present owner, who has brought together the necessary labour, materials, &c., for the purpose. Our volume measure must, of course, include such types of capital formation.

The position is complicated a little by the fact that gross capital formation includes the “increase in carry-over of total trading and manufacturing stocks of goods and materials between the beginning and end of each year.” Since the increase in stocks may be positive or negative, it is apparent that this part of gross capital formation requires special treatment. The treatment, however, depends on the method used for valuing stocks, and this is in practice one of the most difficult portions of national income to evaluate. There are as yet no very satisfactory statistics of inventories in New Zealand.

If we could estimate the change in quantity of each commodity held in stock and of all work in progress, valued at the average price level of the period—and this is what Richard Stone sets as the ideal—we would be able to use a price correction for stock changes similar to that for durable capital goods.* We could then generalize thus:—

Changes in gross capital formation—

  • Corrected for changes in prices of durable capital goods (including capital improvements and stocks),—

give changes in volume of capital formation (including capital improvements and stocks).

The final national expenditure item is “Net overseas investment.” In the United Nations publication, “Measurement of National Income and the Construction of Social Accounts,” this item is called “Net expenditure by the rest of the world on goods and services,” a title which gives a better idea of its content, but obscures its capital nature. The meaning of “services” must here be extended to include the use of factors of production resulting in the transfer of wages, interest, dividends, &c., to or from the “rest of the world.”

*Strictly it would be advisable to apply price relationships separately to those industries where stocks had increased and those where stocks had decreased, but it is doubtful whether there would be any appreciable error in ignoring this refinement.

The only satisfactory way to relate this item to volume measures is by separating receipts from payments, thus:—

Net overseas investment—

  • Is equivalent to expenditure by the rest of the world on goods and services.

  • Less expenditure on goods and services supplied by the rest of the world.

Of these we can say:—

Changes in expenditure by the rest of the world on goods and services—

  • Corrected for changes in export prices of all goods and services,—

give changes in volume of exports of goods and services.

Similarly:—

Changes in expenditure on goods and services supplied by the rest of the world—

  • Corrected for changes in import prices of all goods and services,—

give changes in volume of imports of goods and services.

We can now write down the volume equivalent of gross national expenditure as “the volume of goods and services consumed, exported, or added to capital, less the volume of goods and services imported.”

11. INCOMES. PRODUCTS, AND EXPENDITURE

The final three tables in this paper express in tabular form some of the results we have obtained in Part V. These tables do not, however, provide a very good summary of the ground covered, because the main value of the relationships we have developed often lies not so much in the relationships themselves as in the discussion leading up to them.

In essence, we have set down in these tables a money flow, a volume measure, and the price or other relationship connecting the volume to the flow. The price or other connecting relationships will each provide a statistical time series and the movements in each time series should be studied along with the movements in the money flow to which it relates. For the most useful results, the movements in the price or other relationships should be recorded in suitable compact industry groups and studied in relation to money flows subdivided into similar groups.

The volume totals of each table, while differently expressed, are in fact identical.

The three identical volumes are:—

  1. Volume of production of goods and services.

  2. Volume of sales of goods and services to persons other than producers (including sales to the rest of the world), plus increases in stock holdings, less volume of imports.

  3. Volume of goods and services consumed, exported, or added to capital, loss volume of goods and services imported.

We think it very probable that an improved understanding of the economic system and of the national income estimates could be obtained by studying these identities in conjunction with the price and other relationships by which we have developed them in this paper. The material would lend itself well to a mathematical approach, but some other approach is just as likely to be fruitful.

Two examples of the use of the relationships between money flows and volumes for Government policy formation are given on page 1038 of this paper. It will be noted that there is no direct reference to volumes or real measures of activity in those examples. We would again stress the point that, while we have set out in this part to develop real measures from the national income figures, it is usually not the real measure but the price or other relationship connecting it to a national income item which has the greatest practical value to the student of economic affairs.

NATIONAL INCOME AND REAL MEASURES OF NATIONAL ACTIVITY

National Income Item.Related Real or Physical Quantity.Price or Other Index (Correcting Factor).Coverage of Index and of Quantity.Remarks.
(1) National wages billNumber of salary and wage earnersAverage amount of salary and wage payouts, including overtime. (N.B.—Not nominal or ruling rates)All salary and wage earners(a) Excludes working proprietors.
    (b) May exclude Armed Forces.
(2) National wages billVolume of production of goods and services (restricted concept)(a) Average amount of salary and wage payouts, including overtimeRestricted concept—all production which is associated with efforts of salary or wage earners or the similar efforts of working proprietorsMay exclude Armed Forces.
  (b) Relationship of working force (salary and wage earners plus working proprietors) to number of salary and wage earners (reciprocal)  
  (c) Average volume of output per man-year (including working proprietors), (reciprocal)  
(3) National wages billVolume of production of goods and services(a) Average value of net product (or wages plus surplus) for each £1,000 of salary and wage payout (reciprocal)Restricted concept—as aboveMore satisfactory if salary and wages corrected for equivalent wage earnings of working proprietors.
  (b) Average net value per unit of outputAlternatively, it is possible, by suitable industry grouping, to obtain a full coverage of production, but for some groups the average (a) would have no real significance 
National income (not national product at factor cost)Volume of production of goods and services (broad concept)Factor cost per unit of outputAll production (assuming there is a real counterpart in production for the whole of national product)Involves consideration of real measures of “production” of such items as Armed Forces.

NOTE.—To try to get a full coverage of production from a national wages approach, which was suggested as a possibility under the third method, is really straining the wages approach. Nevertheless, the relationships of production to wages are more satisfactory than those to net product in all industry groups where salary and wage payments are an appreciable proportion of factor cost. In practice, the most fruitful method is the combination of a wages and a net product approach which is outlined in the accompanying text.

NATIONAL PRODUCT AND REAL MEASURES OF NATIONAL ACTIVITY

National Product Item.Related Heal or Physical Quantity.Price or Other Index (Correcting Factor).Coverage of Index and of Quantity.Remarks.
For each industry group, net product is equal to    
Gross revenue from its sales of goods and servicesVolume of sales of goods and services to producers and othersMarket prices of sales by the groupAll sales by the group, whether to consumers, to producers, or to capital holders, plus services supplied by Government non-trading DeportmentsPrice ranges for sales to producers may differ from those for sales to consumers. Supplies by Government non-trading Departments must in this context, be treated as sales at a price equal to the cost of supplying.
Less indirect taxation    
Plus subsidies    
Less depreciation allowances    
Less cost of goods and services it uses in production

Less volume of purchases of goods and services

Less decreases in stock holdings

Market prices of purchases by the groupAll purchases of goods or services plus decreases in stock holdingsDecreases in stock holdings can be regarded as “purchases” from the stock holdings of the group for use in production.
Summing for all groups    
Net national product, at factor costVolume of sales of goods and services to persons other than producers (including all sales to the rest of the world), plus increases in stock holdings, less volume of importsMarket prices of sales other than to producers (except for stock increases and imports)Sales other than those to producers, but including all exports, plus supplies by Government non-trading departments, plus increases in stock holdings, less importsIn the aggregate for all groups we are concerned more with market prices than with prices of sales to producers, because sales by one producer cancel out against purchases by another. With stock increases, however, our index must relate to cost of stocks, and with imports, to cost of importing.

Alternatively.—The revenue figures in the above break-up could be taken net of “indirect taxation less subsidies” and of depreciation allowances. The indices of price movements for sales would then have to be adjusted for these items. The aggregate relationships used would then be much more complicated, because We could not assume that sales to producers would cancel out purchases (except in volume). Nevertheless the alternative approach is better for some purposes, provided this difficulty is solved.

Second Alternative.—Approach volumes through factor costs, as in previous table.

NATIONAL EXPENDITURE AND REAL MEASURES OF NATIONAL ACTIVITY

National Expenditure Item.Related Real or Physical Quantity.Price or Other Index (Correcting Factor).Coverage of index and of Quantity.Remarks.
Personal consumptionVolume of goods and services purchased by consumersPrices of goods and services purchased by consumersAll goods and services purchased by consumers, including income payments in kindGovernment purchases are excluded, as are capital purchases by consumers.
Current Government expenditure on goods and servicesVolume of goods and services supplied by GovernmentOperating-costs per unit of outputAll General Government and local authority non-trading departmentsInvolves volume or efficiency investigations for all Government non-trading services.
Gross capital formationVolume of capital formation, including increases in stock holdingsPrices per unit of durable capital goodsAll capital formation, including capital improvements and increases in stocksDecreases in stock holdings may require special treatment.
Net overseas investment—    
  Net expenditure by the rest of the world on goods and servicesVolume of exports of goods and servicesExport pricesGoods and services only, not unilateral paymentsFactor payments must be included.
    Less expenditure by the rest of the world on goods and servicesVolume of imports of goods and services (negative)Import pricesDittoDitto
Gross national expenditureVolume of goods and services consumed, exported, or added to capital, less volume of goods and services importedAs above (applied to individual items)As aboveThe concept of goods and services which is used here is a broad one—as when we assumed that there was a physical or real counterpart to all of national product.

INDEX

A

Abattoirs, 358.
Abolition of Death Penalty, 184.
Abolition of Legislative Council, 15, 906.
Abolition of Provinces, 589.
Aborigines (see Maoris).
Abortion, 92, 105, 113, 117.
Accident Funds, 237, 238, 404, 743.
Accident Insurance, 621–625.
State, 636, 637.
Accidents—
Aircraft, 93.
Automobile, 87, 93, 102, 192, 253–255.
Cases treated in Hospitals, 113.
Causes of, 812–814.
Deaths from, 87, 92, 93, 97, 98, 102, 232, 253–255, 401, 811–818, 880.
Frequency Rates, 810–812.
Industrial, 727, 767–771, 809–820, 880.
Mining, 93, 395, 401, 404, 743, 809–820.
Railway, 93, 232, 254, 809–820.
Time lost through, 816–818.
Traffic, 93, 232, 253–255.
Tramway, 93.
Acclimatization of Fishes, 7, 386, 387.
Accommodation of Hospitals, 139, 140.
Accommodation Licences, 891, 892.
Accouchements, 57, 58, 60, 63.
Accounts, Public, 469–518.
Acreage and Yield of Crops, 330, 333–347, 1003.
Acreage of Holdings, 280, 281.
Acts passed in 1949 and 1950, 898–922.
Actuarial Valuation of Superannuation Funds, 552, 555.
Added Value in Manufacturing, 406, 407, 416, 417, 420, 422, 424, 1010.
Adjustment of Mortgages, 650.
Administration, 14–17.
Cook Islands, 844.
Niue, 850.
Western Samoa, 852–854.
Adolescent Dental Service, 121, 122.
Adopted Children, 64, 907.
Adult Education, 174, 175.
Adulteration of Food, 118.
Advances—
Bank, 588, 590–594, 1015.
Building Societies, 643–647.
State (see State Advances and State Aid).
Advertisements, Medical, 118, 119.
Advertising by Radio, 278.
Aeradio Stations, 842.
Aerated-water Factories, 408–419, 426, 430.
Aerial Surveys, 302, 303.
Aerial Work Operations, 260.
Aero Clubs, 263, 264.
Aerodromes, 203, 256, 860.
Afforestation, 366, 367, 379–381.
Bondholders, 867.
Companies, 381, 867.
After-lifetime, Average, 78.
Age Benefits, 522–524, 532, 533, 539, 729, 913.
Age Distribution, 38, 41–45.
Age, Mean—
At Death, 77, 78.
At Marriage, 69, 70.
Agents Overseas, 936, 937.
Ages—
Of Cancer Decedents, 91.
Of Fathers, 59.
Of Hospital Patients, 112.
Of Infants dying, 82–84, 98.
Of Injured Employees, 814.
Of Inmates of Charitable Institutions, 142, 143.
Of Inmates of Mental Hospitals, 145.
Of Maoris, 38, 42, 43.
Of Maoris dying, 96, 98.
Of Migrants, 25.
Of Mothers, 59, 60, 62, 63.
Of Offenders probationed, 188.
Of Parents, 59–63.
Of Patients in Public Hospitals, 112.
Of Persons dying, 77, 78, 96, 98, 876.
Of Persons marrying, 69, 70.
Of Population, 38, 41–43.
Of Prisoners, 186, 187.
Of Public-school Pupils, 157, 159.
Of Registered Aliens, 30.
Of Tubercular Decedents, 88.
Aggregation of Incomes, 683, 684.
Agricultural and Pastoral Production, 306–364, 881–883, 1003.
Persons engaged in, 779, 781.
Value of, 310–315, 881–883.
Volume of, 312, 313, 883.
Agricultural Bursaries, 171, 174.
Agricultural Clubs, 166.
Agricultural Colleges, 153, 171, 173, 174, 308, 309, 834.
Agricultural Machinery, 327–331, 360, 408–419, 426, 433, 982.
Agricultural Produce—
Consumed locally, 315, 824–827.
Exported, 315, 824, 952–955, 964, 965.
Gross Farming Income, 310–315.
Price Index Numbers, 702–705.
Agricultural Workers Act, 711, 730, 731, 746–748.
Agriculture, 306–347.
Department of, 307, 308.
Research in, 307, 308, 336, 346.
Aides-de-Camp, 923.
Aides, Nursing, 125, 128.
Aids, Artificial, 538, 539, 540.
Air Force, 201–203, 206–209, 912.
Expenditure on, 203, 479.
Casualties, 206, 209.
Air Mails, 259–263, 265, 266.
Air Training Corps, 201, 202, 264.
Air Transport and Aviation, 201–203, 207, 256–266.
Aircraft, 256–266.
Accidents, 93.
Licensing and Control, 257–265.
Aitutaki Island, 2, 272, 842, 843, 845–847.
Alcoholic Liquors—
Brewed, 429.
Consumption of, 827.
Duty on, 4211, 472, 482, 485, 989–993.
Exports of, 954, 955.
Imports of, 971, 979.
Sale of, 891–895.
Alexander Turnbull Library, 1028.
Alienation of Land, 281, 289–293, 297.
Aliens, Naturalization of, 28.
Aliens, Race, 49–51.
Aliens, Registration of, 29.
Alluvial-gold Mining, 7, 389.
Amalgamation of Local Authorities, 562, 563.
Ambassadors, 937, 939.
Ambulance, St. John, 130.
American Servicemen, Marriages with New Zealand Women, 67.
Amortization of Debt, 473, 479, 500, 503–505, 509–511, 570, 575, 673.
Amputees, 542.
Amusements-tax, 494, 496, 877.
Anchorage Island, (see Suwarrow).
Angling, 385–387.
Animal Life, 13.
Annexed Islands, 841–852.
Annual Holidays Act, 734, 737, 741, 745, 747, 916.
Annual Value Rating-system, 664, 565.
Annuities, 539, 549–557, 617, 620.
Ante-natal Services, 141.
Anthracite, 395.
Antimony-ore, 388, 389, 391, 402.
Antipodes Islands, 2, 32, 39, 842.
Anzac Day, 737, 900.
Apiaries, 363.
Apiculture, 363, 364.
Apolima Island, 3, 852.
Apparel, Duty on, 989.
Appeal Court (see Courts).
Apples, 307, 332, 333, 343–345.
Consumption of, 826.
Exported, 954, 955, 963, 964, 965.
Fixation of Prices of, 693.
Issued to School-children, 166.
Marketing of, 318, 344, 345.
Apprentices, 727, 763–766, 833.
Appropriations, Expenditure under, 473.
Arbitration (see Industrial Conciliation and Arbitration).
Arbitration Court (see Courts).
Award Wage-rates, 711–722.
Area—
Of Exotic Forests, 380.
Of Indigenous Forests, 282, 366.
Of Island Territories, 2, 841–864.
Of Land Holdings, 280, 281.
Of New Zealand, 1, 2, 39, 280.
Of Properties transferred, 284.
Of Provincial Districts, 31.
Top-dressed, 342, 343.
Under Crops, 330–347, 1003.
Under Cultivation, 281, 282, 334–347.
Armed Forces—
Awards for Gallantry, &c., 209, 930.
Casualties in, 204–206, 208, 209.
Demobilization of, 839.
Overseas at Census date, 18, 43, 51.
Patients in Public Hospitals, 110.
Pay and Allowances, 667, 668, 674, 675, 677, 678.
Strengths of, 198, 201, 202, 208, 779, 780.
Vegetables for, 343.
Voting by, 886.
Army, 198–201, 203–209, 911, 912.
Expenditure on, 200, 479.
Arrivals, (see Migration).
Arsenic, 388.
Arson, 193, 631.
Articles on Special Subjects in Previous Issues, 1028, 1029.
Artificial Aids, 538, 539, 540.
Artificial Limbs, 539.
Art-unions, 494, 895, 896.
Asbestos, 392.
Assessable Income, 491, 679–690.
Assessment of—
Income-tax, 489–491, 679–690.
Land-tax, 488.
Land Values, 581.
Assets—
Of Bankrupts, 658, 1019.
Of Banks, 588, 590, 597, 598, 602, 1015.
Of Building Societies, 647.
Of Electric-power Undertakings, 419, 463, 464.
Of Factory Industries, 418–420, 422.
Of Fire-insurance Companies, 626, 627.
Of Friendly Societies, 641.
Of Life-assurance Companies, 620.
Of Local Authorities, 571, 572.
Of Reserve Bank, 588.
Assigned Estates, 657–661, 1019.
Assisted Immigration, 25, 785.
Assurance, Life, 614–621.
Asylums, 144–148.
Atafu Island, 2, 3, 272, 860–862.
Atiu Island, 2, 272, 842, 843, 845, 847.
Atlantic Salmon, 387.
Auckland—
Broadcasting Stations, 276–278.
Building Values, 451.
Dwellings, 453.
Fires, 630.
Harbour Bridge Act, 922.
Population, 33, 34, 36.
Rainfall, 10–13.
Retail Prices, 700.
Sales-tax Receipts, 498.
Shipping, 211, 214–220.
Sunshine, 10–13.
Temperature, 10–13.
Tramways, 233, 235–238.
Trustee Savings-bank, 602.
Auckland Islands, 2, 32, 39, 842.
Audit of Expenditure, 470.
Auriferous Mining, 389.
Australia—
Debt domiciled in, 506, 508, 575–677, 1011.
New Zealand Representatives in, 936.
Note Circulation, Index of, 596.
Reciprocal Trade with, 995, 996.
Representative in New Zealand, 937.
Social Security Reciprocity with, 519–532, 533, 735.
Automatic Telephones, 270, 271.
Automobiles (see Motor-vehicles).
Autonomy, Local (see Local Authorities).
Avarau Island, (see Palmerston).
Aviation and Air Transport, 201–203, 207, 256–266.
Award Wage-rates (see Wage-rates).
Awards for Gallantry, &c., 209, 930.

B

Bachelors marrying, 68–70.
Backward Children, 152, 167, 168.
Bacon and Ham, Consumption of, 825.
Bacon and Ham produced, 427.
Balance of Overseas Payments, 599, 945, 946.
Balance of Trade, 941–944.
Balances of Public Accounts, 470.
Bananas, 693, 826, 848, 851, 859, 986.
Banking and Currency, 585–613, 1015, 1016.
Banking Companies, Taxation of, 486.
Bank-notes, 586, 588–590, 595, 596, 608, 609, 1015.
Denominations of, 596, 609.
In Circulation, 587, 595, 596, 1015.
Bank of New Zealand, 589.
Bankruptcy, 657–661, 758, 764, 1019.
Banks Indemnity (Exchange) Act, 500.
Banks, Overseas Assets of, 588, 590, 597, 598.
Banks, Savings—
Post Office, 600, 601, 603, 604, 606, 727, 1016.
School, 601.
Trustee, 602–604, 606.
Barley, 306, 307, 332–335, 337, 338, 340, 347, 429.
Barren Land, 280, 282.
Basic Kent, 775, 776.
Basic Wage, 750, 760.
Beans, 333, 335, 343, 827.
Beds, Hospital, 138–140.
Beef—
Chilled, 326, 353, 358, 359, 954, 955, 960.
Consumption of, 825.
Export of, 326, 358, 964, 965, 968.
Imperial Government Purchase, 318, 325, 326.
Slaughterings, 358, 427.
Beer—
Consumption of, 827.
Duty on, 429, 472, 482, 485, 989–993.
Production of, 429.
Bees, 363, 364.
Benefit Societies, 640–642.
Benefits, Social Security, 140–142, 148, 478, 521–540, 671–678, 772, 783, 913.
Benevolent Institutions, 141–143.
Benevolent Societies, 640–642.
Bentonite, 388, 399,401,402.
Bibliography—
General, 1030–1032.
New Zealand Flora, 13.
Big-game Fishing, 385.
Bills, Treasury, 500, 506.
Birthplaces, 48.
Births, 53–65, 99, 100, 1000.
Excess of, over deaths, 20, 100.
In Charitable Institutions', 141, 142.
In Cook Islands, 845.
In Niue Island, 850.
In Western Samoa, 854.
Of Maoris, 94, 95, 99, 100.
Biscuit Industry, 408–419, 426, 429.
Bitumen-surfaced Roads, 240.
Bituminous Coal, 392–395.
Blind, Benefits for the, 528, 532, 834.
Blind, School for the, 155, 167, 168.
Blocks of Flats, 450.
Board of School-children, 164, 165.
Board of Trade, 918, 919, 948.
Boat-building Works, 408–419, 426, 433.
Bobby Calves, 359.
Boilers, Inspection of, 879, 880, 914.
Boiling-down Works, 408–419, 426, 430.
Bond-issuing Companies, 867.
Bonds, National Savings, 499, 603.
Boot and Shoe Factories, 408–419, 426, 434.
Boroughs, 558–578.
Area of, 36, 37.
Bridges in, 240.
Capital and Unimproved Values, 583.
Debts, 571, 575, 1014.
Housing, 437, 449–151, 567.
Mileage of Streets, 240.
Population, 36, 37.
Borrowing-powers of Local Authorities, 564.
Borstal Institutions, 183–187.
Boundaries of New Zealand, 1–3.
Bounty Islands, 2, 32, 39, 842.
Brass-foundries, 408–419, 426, 433.
Bread, Fixed Prices for, 691.
Breeding-bulls, 352.
Breeding-ewes, 298, 348–350.
Breeding-sows, 348, 357.
Breweries, 408—419, 426, 429.
Brickworks, 408–419, 426, 429.
Brides and Grooms, 66–70.
Bridges, 241, 455.
Bridle-tracks, 241.
Brigades, Fire, 634, 900.
Briquetting and Carbonizing of Coal, 396, 397.
British Commonwealth Pacific Airlines, 263, 266, 502, 512.
British Countries, Representatives in New Zealand, 937–939.
British Nationality, 28.
British Phosphate Commission, 2, 512, 864.
British Postal Orders, 269.
British Preference, 969, 975, 993–997.
British Sovereignty, 3.
British Trade Representatives, 937–939.
Broadcasting, 275–279.
For Schools, 170, 278.
Time Signals, 278, 897.
Bronze Coinage, 607.
Building, 436–456.
By Owner-builders, 456.
By Regular Builders, 455.
Building, Construction and Housing, 436–456, 513–518.
Persons engaged in, 779, 781, 787.
Building Costs, 437, 703.
Building Materials, 691, 703, 972.
Wholesale Price Indices, 703.
Building Permits, 436, 437, 448.
Building-sheet and Wallboard Industry, 408–419, 426.
Building Societies, 643–647.
Deposits, 603, 606.
Building-stones, 388, 400, 401.
Bulk Purchase Agreement, 317–326, 950.
Bullion, Exports of, 954, 964, 965, 968.
Bullion Production, 388, 389.
Bureau of Industry, 884, 885.
Burials, 74, 119.
Bursaries—
Agricultural, 171, 174.
Dental, 122, 173.
Ex-servicemen's, 171, 173, 835, 836.
Medical, 173.
Physical Education, 169.
Post-primary Teachers', 169.
Secondary Schools, 163.
Servicemen's Dependants, 163, 836.
Technical Schools, 164.
University, 171–174.
Bush, 282, 366.
Bush-working Accidents, 809–820.
Bushel Units, Weights of, 333.
Business Failures, 657–661, 1019.
Business Loans, 515, 517, 837–840.
Butter (see Dairy Produce).
Butterfat Production, 354–357.
Butterfat used in Factories, 354–357, 428.
Butterfat Yields, 356.
By-election, 891.

C

Cabinet, 14.
Members of, 924, 925.
Cable Tramways, 239.
Cables, Ocean, 272.
Cadets, 196, 197, 200.
Calf-skins exported, 954–968, 1009.
Call, Deposits at, 590.
Calves slaughtered, 358, 359.
Campbell Island, 2, 18, 32, 39, 842.
Camps, 439.
Camps, Health, 120–121, 130.
Camps, Holiday, 130.
Canada—
Exchange Rate with, 612.
New Zealand Representatives in, 936.
Note Circulation, Index of, 596.
Reciprocal Trade with, 996.
Representatives in New Zealand, 938.
Canadian Mutual Aid, 479, 942.
Cancer, 87–91, 96, 97, 102, 113, 146.
Candle-factories, 408–419, 426, 430.
Canned Fish, 383, 384.
Canned Fruits, 429.
Consumption of, 827.
Canned and Preserved Meats, Production of, 359, 427.
Canned Meat exported, 217, 360, 954, 955, 964, 965, 968.
Canned Vegetables, 429.
Consumption of, 827.
Canterbury Agricultural College, 152, 153, 171, 173, 174, 308, 834, 901.
Capital—
Expenditure of Government, 475.
Invested in Electric-power Undertakings, 419,460–464.
Invested in Factories, 418–420.
Invested in Railways, 225, 1018.
Invested in Telegraph Construction, 269.
Invested in Telephone Construction, 271.
Invested in Tramways, 234, 237, 239.
Of Banks, 585, 588, 589.
Of Joint-stock Companies, 867–873.
Capital Formation, 665–669.
Capital Punishment Act, 918.
Capital Value of Land, 579–584.
Rating on, 564, 565.
Capitation Scheme, Social Security, 534, 903.
Carbonizing and Briquetting of Coal, 396, 397.
Cargo handled at Ports, 210–220.
Car-miles run by Trams, 233, 235, 239.
Carpentry Schools, 832.
Carnegie Corporation, 174.
Carrots, 335, 340, 343, 826.
Casein exported, 954, 955, 964, 965.
Cassiterite, 391.
Casualties in War, 204–206, 208, 209.
Casualties, Shipping, 223.
Catchment Boards, 367, 558–578.
Cattle, 298, 348, 352, 353, 358–360, 1004.
Cattle-hides exported, 954–968, 1009.
Causes of—
Accidents, 812–814.
Deaths, 80–94, 96–98, 102, 146.
Fires, 631.
Industrial Disputes, 806.
Infant Mortality, 82–85.
Insanity, 144.
Maori Deaths, 96–98.
Still-birth, 85–87.
Cement-concrete Roads, 240.
Cement-works, 408–419, 426, 432.
Cemeteries, 119, 912.
Census, 15, 18–22, 30–33, 38–52, 778–783.
Abandonment of, 19.
Of Dwellings, 438–445.
Of Poultry, 361, 362.
Of Public Libraries, 1032.
Of Religions, 46, 47.
Unemployment Statistics, 783.
Central Reserve Bank (see Reserve Bank).
Centres, Vocational Guidance, 164.
Cereals, 331–338, 1003.
Consumption of, 827.
Certificated Teachers, 169, 170.
Certificates—
Dentists' Practising, 126.
Engine-drivers', 880.
Land Titles, 286.
Marine Officers', 222, 745.
Medical Practitioners', 126.
Mine Officials', 404, 743, 744.
Naturalization, 28, 29.
Occupational Therapists', 127.
Opticians', 128.
Physiotherapists', 127.
Certification of Seed, 308, 339, 341, 347.
Certification of Trades, 766, 767.
Chaff, 333, 337, 340.
Charitable Aid, 137, 138, 141–143.
Charitable Institutions, 134–143.
Chatham Islands, 2, 350, 841, 842, 1032.
Radio Station, 272.
Schools, 153, 165.
Cheese (see Dairy-produce).
Chemical Fertilizer Works, 408–419, 426, 434.
Chemists, Registration of, 129.
Chief Justice, 929.
Child Hygiene, 120–121.
Child Migration, 25.
Child Welfare, 81, 120–121, 129, 130, 155, 166–168, 189.
Childbirth, Accidents, &c., of, 87, 91, 92, 98, 102, 105, 113, 117, 144.
Children, 780.
Adopted, 64, 909.
Affected by Divorce Proceedings, 73.
Alien Minor, 28.
Allowances in respect of, 521–557.
Born, Numbers and Rates, 54, 95, 99.
Born, Sexes of, 56, 57, 59, 65, 95, 99.
Crippled, 130.
Dental Treatment of, 121.
Legitimized, 64.
Medical Inspection of, 120.
Offences by, 167, 189.
Under One, Deaths of, 77, 78, 80–85, 96–98, 103, 1000.
Children's Courts, 166, 167, 189.
Children's Homes, 141–143, 166–168.
Chilled Beef, 326, 353, 358, 359, 954, 955, 960.
Chinese—
In Nauru, 864.
In New Zealand, 50.
In Western Samoa, 854.
Chou Moellier, 333, 335, 340, 347.
Christchurch—
Broadcasting Stations, 276–278.
Building Values, 451.
Dwellings, New State, 453.
Fires, 630.
Population, 33, 34, 37.
Rainfall, 10–13.
Retail Prices, 700.
Sales-tax Receipts, 498.
Sunshine, 10–13.
Temperature, 10–13.
Tramways, 233, 235–238.
Chronological List of Events, 1020–1027.
Cigarettes and Tobacco, 345, 346, 408–419, 426, 971, 989, 991, 993.
Cinematograph Film-hire Tax, 472, 496.
Cinematograph Theatres, 876–878.
Cinnabar, 391.
Cities, Population of, 34, 36, 37.
Citizenship, 27–29.
Citrus Fruits, 307, 332, 344, 693, 826, 848, 986.
Civic Planning, 566.
Civil Aviation, 256–266.
Civil Law Cases, 177.
Civil List, 14, 473, 922.
Civil Marriages, 65, 71.
Civil Service (see Public Service).
Claims, Insurance, 614–639.
Clays, 388,401, 402.
Clearings, Bank, 594.
Clergy of each Denomination, 71.
Marriages by, 71.
Climate, 4, 10–13, 842, 849, 852.
Clinics—
Ante-natal, 141.
School Dental, 121.
Venereal Disease, 106.
Clocks, Public, 898.
Closing-hours of Shops, 741.
Clothing, Rationing of, 830.
Clothing-factories, 408–419, 426, 435.
Clothing and Footwear, Retail Prices of, 694–700.
Clover-seed (see Crass-seed).
Club Charters, 893.
Clubs, Aero, 263, 264.
Clubs, Agricultural, 166.
Clubs, Rifle, 200.
Clubs, Working-men's, 640.
Coachbuilding-works, 408–119, 426, 433.
Coal—
Carried on Railways, 230.
Consumption of, 397, 414, 432.
Exports of, 389, 954, 964, 965.
Production of, 388, 392–398.
Public Ownership of, 388.
Resources, 392–394.
Subsidy on, 397, 671.
Utilization of, 397, 414.
Coal-miners' Relief Fund, 404, 743.
Coal-mines Act, 388, 731, 735, 736, 742–744, 899–911.
Coal-mining, 392–398, 402, 804, 805.
Coastal Shipping, 213, 216–218, 221.
Coastal Vessels registered, 221.
Coast-line, 3.
Coin held by Banks, 588, 590, 1015.
Coin imported and exported, 607, 948, 949, 1005.
Coinage, 607–609.
Coin-in-slot Telephones, 271.
Colleges—
Agricultural, 153, 171, 173, 174, 308, 309, 834.
Military, 199.
Naval, 197.
Pharmacy, 129.
Teachers' Training, 168, 169.
University, 153, 162, 171–174, 1001.
Colleries, 392–398.
State, 397, 398.
Combined Schools, 153, 160–163, 165, 170.
Commerce and Finance, Persons engaged in, 779, 781.
Commerce, Overseas, 940–998, 1005–1009.
Commercial Afforestation, 381.
Commercial Air Transport, 256–266.
Commercial Broadcasting, 275–279.
Commercial Failures, 657–661, 1019.
Commercial Gardens, Registration of, 343.
Commodities—
Consumption of, 821–830.
Rationing of, 828–830.
Community Centre, 133, 175.
Companies—
Bank Advances to, 593.
In Manufacturing Industries, 420.
In Manufacturing Industries, 420.
Bond-issuing, 867.
In Manufacturing Industries, 420.
In Manufacturing Industries, 420.
Co-operative Dairy, 354, 901, 913.
In Manufacturing Industries, 420.
In Manufacturing Industries, 420.
Deposits with, 603, 606.
In Manufacturing Industries, 420.
In Manufacturing Industries, 420.
Income of, 667–678, 680, 687–689.
In Manufacturing Industries, 420.
In Manufacturing Industries, 420.
Joint-stock, 867–873.
In Manufacturing Industries, 420.
In Manufacturing Industries, 420.
Private, 868–873.
In Manufacturing Industries, 420.
Share Price Indices, 707–710.
Taxation of, 489, 494, 496, 520, 680, 687–689.
Comparisons with other Countries—
Birth and Natural Increase Rates, 56.
Dairy Produce Consumption, 825.
Dairy Production, 356.
Expectation of Life, 79.
Health Insurance, 729.
Infant-mortality Rates, 81.
Marriage-rates, 67.
Meat Consumption, 826.
Telephones to Population, 270.
Unemployment Insurance, 729.
Compassionate Allowances, 549.
Compensation Court (see Courts).
Compensation, Workers', 621, 639, 729, 735, 767–771, 809–812, 899, 900, 903, 918.
Compulsory Education, 149.
Compulsory Insurance, 638, 735, 768.
Compulsory Military Training, 199, 901, 902.
Compulsory Registration of Titles, 283.
Compulsory Unionism, 760, 797.
Compulsory War Loan, 505.
Conciliation Councils, 711, 728, 758–763.
Concrete Products Works, 408–419, 426.
Concrete-surfaced Roads, 240.
Condensed-milk Factories, 408–419, 426, 428.
Confectionery Industry, 408–119, 426, 429.
Confinement, Deaths in, 87, 92, 102, 113.
Conflagrations, 630.
Deaths from, 92.
Conjugal Condition of Persons marrying, 68, 69.
Conjugal Condition of Population, 44–46.
Conjugal Rights, Restitution of, 72, 73.
Consent to Marriage, 65, 66.
Conservation of Forests, 366–368.
Conservation of Soil, 367, 474, 475, 558.
Consolidated Fund, 471–474, 481–485, 508–510, 639, 673, 1012.
Consolidation of Schools, 164.
Constitution, 14—17.
Of Local Districts, 560.
Construction, Building and Housing, 436–456, 513–518.
Construction of Dwellings (Materials), 442.
Construction of Railways, Cost of, 225, 475, 1018.
Construction of Roads, 240–246, 475, 478, 485
Consuls, 937–939.
Consumers' Goods, Imports of, 972–974.
Consumers' Goods, Wholesale Prices of, 703.
Consumers' Price Index, 694–701.
Consumption (see Tuberculosis).
Consumption of—
Coal, 397, 414, 432.
Commodities, 821–830.
Electricity, 238, 414, 459–466.
Farm-produce, 314, 315, 824–830.
Motor-spirits, 248.
Timber, 376, 377.
Wool, 319, 351, 434.
Contact Lenses, 538.
Contagious Diseases, 87, 97, 102, 104–110, 113–117, 118.
Contingent Liabilities (State), 501.
Contractors' Liens, 731, 735, 757, 758.
Contributory Negligence, 767.
Control of—
Exchange, 599, 608, 945.
Exports, 315–318, 399, 848, 859, 948.
Imports, 848, 859, 948, 969, 970, 990.
Land Sales, 286–288, 732.
Man-power, 732, 733, 784.
Poultry, 363.
Prices, 691–693.
Rivers, 367, 474, 475, 558.
Conversion of Debt, 503–505, 576, 577.
Conveyance of Children to School, 164, 165.
Convictions in Magistrates' Courts, 180–182, 190, 1002.
Convictions in Supreme Court, 182, 183, 1002.
Convictions—
For Drunkenness, 181, 190–192.
For Traffic Offences, 181, 190–192.
Of Juveniles, 189.
Of Maoris, 190.
Of Women, 190, 191.
Cook Islands, 1–3, 18, 26, 39, 549, 841–849, 920.
Bibliography, 1032.
Exports to, 968.
Imports from, 986.
Population, 18, 844, 845.
Public Finance, 848, 849.
Radio-stations, 272, 847.
Trade, 848.
Cooperages, 408–419, 426, 431.
Co-operative Credit Associations, 518.
Co-operative Dairy Companies, 354, 901, 913.
Co-operative Public Works, 729, 730.
Copper-ore, 388, 391.
Cordial-factories, 408–419, 426, 430.
Corn Crops, 332–337, 1003.
Coroners' Inquests, 97, 178.
Correspondence Classes, 153, 161, 165, 166.
Cost of Living, 691–701.
Bonuses, 751.
Costs—
Factory, 324, 406–435.
Farm, 324.
Owner Occupied Houses, 662, 696.
Railway Construction, 225, 475, 1018.
Roading, 242–246, 475.
Council, Dental, 126.
Council, Executive, 14.
Members of, 924, 925.
Council for Educational Research, 174.
Council, Legislative, 14, 15.
Abolition of, 15, 906.
Members of, 927.
Council, Medical, 126, 903, 913.
Council, Medical Research, 125, 908.
Council of Adult Education, 174.
Council of Legal Education, 171.
Council of Sport, National, 131.
Counties, 558–578, 902.
Area of, 35, 36.
Bridges in, 240.
Capital and Unimproved Values, 583.
Debt, 571, 575, 1014.
Employees of, 578.
Housing, 452.
Mileage of Roads, 240.
Population, 35, 36.
Country Lands, Mortgages on, 515, 650, 652, 653.
Country Library Service, 175, 176.
Country Quota, 15.
Courts—
Appeal, 184, 929.
Arbitration, 711, 713, 717, 720, 723, 724, 727–766, 929.
Bankruptcy, 657.
Children's, 166, 167, 189.
Compensation, 767–771, 929.
Divorce, 72.
Judges of, 929.
Land Sales, 286–288.
Land Valuation, 286–288, 581, 904, 912, 929.
Magistrates', 177, 180–182, 189–192, 657, 771, 908, 909, 1002.
Maori Appellate, 296.
Maori Land, 296, 904, 922.
Of Review, 650.
Supreme, 72, 177, 182–184, 657, 908, 909, 929, 1002.
Cover, Fire, 627, 628, 638.
Cow-testing, 308.
Cranes, Inspection of, 879, 880, 914.
Crayfish, 383–385.
Cream-separators on Farms, 327.
Credit, Rural Intermediate, 515, 517, 518.
Creditors' Petitions, 657, 658.
Crematoria, 119.
Crews of Overseas Vessels, 24.
Crime, Law and, 177–193, 1002.
Criminals, Habitual, 183, 185–188.
Crippled Children, 130.
Crops, 281, 331–347, 1003.
Crown Lands, 280, 289–295, 921.
Rates paid to Local Authorities, 569.
Crown Tenants, 291, 292.
Advances to, 290.
Cultivation, Area in, 281, 282, 334–347.
Cupro-nickel Coinage, 607.
Currency and Banking, 585–613, 1015, 1016.
Curriculum, School, 156.
Customary Land, 295.
Customs, Representatives Overseas, 937.
Customs Tariff and Revenue, 986–998.
Customs Taxation, 472, 482, 485, 670, 986–998.
Cycle-works, 408–419, 426, 433.

D

Daily Incidence of Fires, 633.
Dairy Cows, 298, 328, 329, 348, 352, 353, 356, 357, 1004.
Dairy Industry, 306, 308, 310–318, 321–325, 327–329, 353–357, 408–419, 426, 428, 593, 746, 901.
Dairying-machinery, 327–329, 408–419, 426, 433, 955, 983.
Dairy-produce, 308, 316–318, 321–325, 353–357.
Bulk-purchases of, 318, 321–323.
Consumption of, 315, 825, 829.
Export of, 217, 314, 315, 316, 318, 321–324, 824, 952–968, 1007.
Export Price Indices, 704–706.
Factories, 308, 312, 324, 354–357, 408–419, 426, 428, 593.
Fixation of Prices, 324, 325, 691, 693.
Grading of, 308, 354.
Gross Farming Income, 310–313.
Marketing of, 315–318, 321–324.
Prices paid for, 321–325.
Processing of, 428.
Production of, 354–357, 426, 428, 882.
Purchase for War Purposes, 318, 322, 950.
Rationing of, 829.
Retail Prices Indices, 694.
Dairy Products Marketing Commission, 317, 322, 324, 950.
Damage (Earthquake and War) Insurance, 469, 480, 638, 639.
Danger Island (see Pukapuka).
Dangerous Drugs, 118.
Dates of Maturity of Debt, 503–506, 577.
Dates of Principal Events, 1020–1027.
Daylight Saving, 896.
Dead-births, 53, 58, 65, 74, 85–87.
Deaf, School for the, 168.
Dealing in Coin, Restriction on, 607.
Death Duties, 472, 482, 491–494, 670, 917.
Estates Passed for, 873–876.
Death Penalty abolished, 184.
Death Penalty restored, 184.
Deaths, 74–94, 96–98, 101–103, 108, 109, 110, 111, 113, 145–147, 178, 232, 401, 1000.
Accidental (see Accidents).
Distribution over Year, 76.
Due to Earthquakes, 10.
From Puerperal Causes, 87,91, 92, 102, 113.
In Charitable Institutions, 141, 142.
In Cook Islands, 845.
In Hospitals, 110–113, 139.
In Mental Hospitals, 145–147.
In Nine Island, 850.
In Western Samoa, 854.
Inquests on, 178.
Neo-natal, 77, 80–87, 97, 98.
Of Friendly Society Members, 641.
Of Infants, 77–85, 96–98, 103, 1000.
Of Insured Persons, 616–620.
Of Maoris, 53, 75, 94, 96–98, 101, 103, 178.
Of Servicemen Overseas, 75, 204–206, 209.
Debentures, 490, 499, 513, 516, 572, 602, 1011.
Debenture-tax, 490.
Debits, Bank, 594.
Debt, Conversion of, 503–505, 576, 577.
Debt of Local Authorities, 138, 512, 571–577, 1013, 1014.
Debt, Public, 499–512, 1011.
Debtors' Petitions, 657, 658.
Deceased Persons, Estates of, 873–876.
Decrees in Divorce, 72, 73.
Deeds Registration, 283, 648.
Defaulters, Military, 17, 186.
Defective Children, 168.
Defectives, Mental, 144–148, 186.
Defence, 194–209, 911, 912, 916.
Expenditure on, 473, 479, 671.
Defence Committee, 194.
Defence Science, 194, 195.
Deferred-maintenance Allowance, 489.
Deferred-payment Lands, 289–293.
Deficits, Consolidated Fund, 1012.
Degrees, University, 126, 154, 172.
Demobilization of Servicemen, 839.
Demography, 18–52, 999, 1000.
Denominational Schools, 152, 160, 846, 856–858.
Denominations of Bank-notes, 596, 609.
Denominations of Coins, 607.
Denominations, Religious, 46, 71.
Density of Population, 39.
Dental Benefits (Social Security), 122, 538, 540.
Dental Bursaries, 122, 173.
Dental Clinics, 121.
Dental Council, 126.
Dental Health Education, 122.
Dental Hygiene, 121–122.
Dental Nurses, 121.
Dental Services, 121, 122, 538, 540.
Dental Treatment of School-children, 121, 166.
Dentists, Registration of, 126.
Department of Agriculture, 307, 308.
Department of Health, 115, 116.
Departments, Government, 865–867, 924, 925, 931, 932.
Departures (see Migration).
Dependants of Soldiers, 540–549.
Dependencies, 2, 18, 841–864.
Dependent Children, Care of, 155,166–168, 189.
Deposits—
By Insurance Companies, 614, 625, 626.
Interest-rates on, 605–607.
With Building Societies, 603, 606.
With Local Authorities, 607.
With Reserve Bank, 588, 604.
With Savings-banks, 600–604, 1016.
With Trading Banks, 590–592, 604, 605, 1015.
With Trading Companies, 603, 606.
Depreciation Allowances, 460, 464, 467, 487, 489, 663, 667, 669.
Depreciation of New Zealand Currency, 610.
Desertion, Ship, 746, 919.
Designs, Registration of, 878, 879.
Destination—
Of Exports, 944, 955–963.
Of Shipping, 211, 212.
Detention, Reformative, 168, 183, 185–189.
Development Loans, 469, 480, 500, 503.
Development of Lands, 290–295, 297, 298.
Diagnosis, X-ray, Services, 536, 537, 540.
Diagrams and Graphs—
Banking, 591, 595, 598.
Building Permits, 450.
Butterfat Production, 357.
Cows in Milk, 357.
Dairy Production, 357.
Electricity Consumption, 466.
Export-prices Indices, 706.
Exports, 944.
Factory Production, 417, 424, 425.
Imports, 944.
Infant Death Rates, 83.
Life Assurance, 614, 621.
Mortgages, 655.
Motor-spirits Consumption, 248.
Motor-vehicles licensed, 248.
Note Circulation, 595.
Overseas Assets of Banks, 598.
Overtime in Factories, 425.
Pigs, 357.
Price Indices, 695, 706, 708.
Production, 336, 357, 417, 424.
Rates of Interest, 655.
Reserve Bank, 598.
Retail-prices Indices, 695.
Share-prices Indices, 708.
Taxation Revenue, 484.
Trading Banks, 591, 598.
Union Membership, 797.
Vital Statistics, 56, 89.
Wheat Production, 336.
Wholesale-prices Indices, 706.
Diatomite, 388, 401, 402.
Dietitians, 128, 913.
Diphtheria, 87, 96, 97, 102, 104, 105, 106, 113, 117, 120.
Diplomas, 126, 154, 172.
Diplomatic Representatives, 936–939.
Direct Taxation, 481, 668, 670, 672, 675, 677.
Disabilities from Industrial Accidents, 809–820.
Disabled Servicemen, 540–549, 834.
Discharged Mortgages, 651, 656.
Discharged Patients, 110–113.
From Mental Hospitals, 145–147.
Discharged Soldiers Settlement, 286–288, 292–295, 513, 517, 732, 831–840.
Discount Rates, 605.
Disease, Prevention of, 120.
Diseases, Notifications of, 104, 105, 117.
Diseases, Principal, Deaths from, 87–94, 97, 98, 102, 112, 113.
Diseases treated in Hospitals, 112, 113.
Disengaged Persons, 790–793.
Displaced Persons, 25.
Disputes, Industrial, 758–763, 801–808.
Dissolution of Marriage, 72, 73.
Dissolution of Parliament, Dates of, 926.
Distribution of Deaths over Year, 76.
Distribution of Population, 30–38.
By Ages, 38, 41–43.
By Industries, 778, 779.
By Occupational Status, 780, 781.
Distribution of Private Income, 674–678.
District High Schools, 153, 160–163, 165, 170, 1001.
District Nurses, 120, 129, 141, 537.
Districts, Electoral, 887–891.
Districts, Income-tax, 687.
Districts, Local, 558–578, 1013, 1014.
Dividends, Bankruptcy, 658, 1019.
Dividends (Totalizator) Duty, 495.
Divorce, 72, 73.
Divorced Persons, Numbers of, 44–46.
Divorced Persons remarrying, 68.
Dolomite, 388, 401.
Domains, Public, 282.
Domestic Assistance, 537, 540.
Domicile of Debt, 500, 504–506, 508, 575–577, 1011.
Drainage Districts, 558–578.
Dredging, Gold, 389.
Drilling for Oil, 398, 399.
Drivers' Licences, 243, 247, 569, 914.
Drowning Accidents, 92.
Drugs, 118, 534, 971.
Drunkenness, 72, 73, 181, 186, 190, 191, 192.
Ducks, 361, 362.
Dunedin—
Broadcasting Stations, 276–278.
Building Values, 451.
Dwellings, 453.
Fires, 630.
Population, 33, 34, 37.
Rainfall, 10–13.
Retail Prices, 700.
Sales-tax Receipts, 498.
Shipping, 211, 214–220.
Sunshine, 10–13.
Temperature, 10–13.
Tramways, 233, 235–239.
Trustee Savings-bank, 602.
Duration of Marriage, 60, 61, 73.
Duration of Residence of Overseas Born, 49.
Duration of Strikes, 803.
Dutiable Imports, 986–998.
Duties—
Customs and Excise, 482, 485, 670, 986–998.
Death, 472, 482, 491–494, 670, 917.
Export, 485, 860, 991, 992.
On Lottery Tickets, 494, 895, 896.
On Overseas Passenger-tickets, 494.
Stamp, 482, 494.
Dwellings, 436–456.
Advances for, 290, 298, 513–518, 567, 643–647, 837, 839, 840.
Amenities of, 443, 445.
Census Enumerations, 438–445.
Electricity Supply, 442.
Erected, 299, 445–448, 452–456.
Fire Losses on, 633.
In Course of Erection, 439, 445, 446, 453, 456.
Maori, 299, 439, 444, 445, 774.
Materials of which constructed, 442.
Rents, 692, 773–777.
Sale of State, 518, 920.
Size of, 441,444.
Soldiers', 837, 839, 840.
State, 445–448, 453, 454, 773.
Tenure of, 440, 444.
Untenanted, 439.
Workers', 445–448, 453, 454, 513–518, 567, 730, 773.

E

Earned Income, 680, 682.
Earnings of Factory Employees, 410, 411.
Earning-power, loss of, 818.
Earthquake Insurance, 469, 480, 516, 638, 639.
Earthquakes, 8, 9.
Deaths due to, 9.
Economic Pensions, 545, 546.
Economic Policy and National Income—
Appendix (e), 1033–1089.
Economic Stabilization, 309, 691, 692, 733, 734, 754–757, 762, 775.
Education, 149–176, 279, 846, 851, 855–858, 1001.
Act, 149, 749, 900.
Boards, 149–151, 900.
Endowments, 150, 155, 290.
Expenditure on, 155, 156, 164, 165, 473, 671.
Of Ex-Servicemen, 835, 836, 840.
Education Gazette, 170.
Educational Association, Workers', 175.
Educational Research, 174.
Eels, 384, 386.
Eggs, 316, 363, 693, 827, 830, 907, 978.
Exported, 954, 955.
Retail prices of, 693.
Elections, General, 15, 886–891, 909, 910.
Electoral Districts, 15, 886–891, 910, 928.
Electoral Qualifications, 17, 560, 561.
Electors, Registration of, 17, 560.
Electric—
Current, 238, 408–419, 426, 457–468.
Power Boards, 460–462, 558–578, 1014.
Power in Factories, 405, 412, 413, 468.
Power on Farms, 306, 327.
Railways, 224, 225.
Tramways, 233–239.
Electric Supply Account, 475, 480.
Electrical Engineering Works, 408–419, 426.
Electricity, Consumption of, 238, 413, 457–468.
By Tramways, 238.
Electricity Generation and Supply, 408–419, 426.457–468,475.
Electricity Supply to Dwellings, 442.
Emergency Benefits, 532, 539.
Emergency Precautions Services, 208.
Emergency Reserve Corps, 208.
Pensions for, 539, 541, 544, 547.
Emigration, 20–26, 999.
Employees—
Cinematograph-theatres, 877, 878.
Electric-supply, 462, 463.
Factory, 406–412, 420, 422, 423, 427–435, 794, 1010.
Fire Brigade, 634.
Hospital Boards, 578.
In industry, 778, 779, 786–790, 793, 794.
Legislation affecting, 727–777.
Local Authority, 577, 578, 789, 795.
Mining, 395, 396, 398, 401.
Postal, 274.
Public Service, 936.
Public Works, 795.
Railway, 231, 789.
State Coal-mines, 398.
Tramway, 233, 239.
Unions of, 727, 758–763, 796–800.
Wage-rates of (see Wage-rates).
Employers, 780, 796, 800.
Employers' Liability, 621–624, 636, 637, 639, 727, 729, 735; 767–771, 900.
Insurance, 621–624, 636, 637, 735, 769, 918.
Employers' Unions, 796.
Employment and Unemployment, 771, 772, 778–795.
Employment Bureaux, 771, 784.
Employment Placement Scheme, 772, 784, 790–793.
Employment Promotion, 731, 772, 783–790.
Fund, 673, 772.
Taxation, 484, 496, 712.
Employment, Seasonal Fluctuations in, 409, 410, 793, 794.
Employment Service, Notional, 732, 772, 778, 784–793.
Employment, Survey of, 785–789.
Employment Vacancies, 790–793.
Enactments affecting Labour, 727–777.
Enactments of 1949 and 1950, 898–922.
Endowment Land, 291–293.
Endowments, Education, 150, 155, 290.
Endowments, National, 380.
Engine-drivers' Certificates, 880.
Engineering-works, 408–419, 426, 433.
Engines—
Employed in Factories, 413.
Employed on Farms, 327.
Inspection of, 879.
Railway, 225, 226.
Ensilage, 281, 332–334, 337, 340–342.
Entertainment, Persons engaged in, 779.
Entertainments-tax, 496, 877.
Entrepôt Trade, 965.
Entry, Ports of, 211.
Envoys Extraordinary, 937–939.
Erosion, 367, 558.
Estate Duty, 491–493.
Estates—
Administered by Public Trust Office, 865–867.
Assigned, 657–661.
Passed for Death Duty, 873–876.
Ewes, Breeding, 298, 348–350.
Examinations—
Education Department, 154.
Electric-tram Drivers', 880.
Engine-drivers', 880.
Marine Officers', 222.
Medical, of School Children, 120.
Medical Practitioners', 126.
Mining, 404, 743.
Navy, Candidates for, 154, 196, 197.
Public Service Entrance, 154, 936.
Teachers', 154.
University, 126, 154, 934, 936.
Excess-profits Tax, 487.
Exchange (Currency), 588, 590, 610–613.
Banks Indemnity (Exchange) Act, 500.
Control of, 599, 608, 609, 945, 946.
Effect on Trade Statistics, 940–944.
Expenditure on, 500.
New Zealand-London, 610, 611.
Rates of, 610–612.
Reserve, 588.
Exchanges, Telephone, 270, 271.
Excise Duties, 482, 485, 670, 990–993.
Executive Council, 14.
Members of, 924, 925.
Exemptions from Taxation—
Income-tax, 486, 487, 489, 490, 680, 685, 686.
Land-tax, 488.
Ex-nuptial Births, 62, 63.
Exotic Trees, Planting of, 379–381.
Expectation of Life, 78, 79.
Expeditionary Forces, 203–208, 1022–1024.
Expenditure—
Air Force, 203, 479.
Army, 200, 479.
Audit of, 470.
Broadcasting, 278.
Cinematograph Theatres, 877, 878.
Civil Aviation, 256.
Education, 155, 156, 164, 165, 473.
Electric-power, 461–464, 466, 467, 570.
Local Authority, 135–138, 570, 571, 671, 672, 1013.
Mental Hospitals, 148.
National, 662–678.
Navy, 198, 479.
Post and Telegraph, 269, 273.
Public, 469–480, 662–674, 1012.
Railway, 225–229, 477, 1018.
Rehabilitation, 473, 479, 837–839.
Roads, 245, 246.
State Forest, 379.
Tramway, 234–239.
War, 198, 200, 203, 473, 479, 502, 505.
Export Control, 948.
Dairy-produce, 316, 353.
Honey, 364.
Kauri-gum, 399.
Meat, 316.
Export Duties, 485, 860, 903, 991, 992.
Export Licences, 859, 948.
Export Prices, 318–327, 703–706, 710, 822, 966–968.
Export Surplus, 941–944.
Exports, 821–824, 940–968, 994–996, 1005–1009.
Currency, Restrictions on, 608, 848, 859.
Dairy-produce, 217, 314, 315, 316, 318, 321–324, 824, 954–968, 1007.
Excess over Imports, 941–944.
Fish, 384, 954, 964, 965.
Gold, 389, 954, 964, 965, 968, 1007.
Meat, 217, 314, 325–327, 358–360, 824, 952–968, 1006.
Minerals, 389, 954–968.
Of Ports, 217.
Receipts from, 599.
Specie, 608, 948, 949.
Timber, 377, 378, 954–965.
Valuation of, 940, 943,951.
Value in Sterling, 940, 947.
Value on Gold Basis, 947.
Values, Index Numbers, 822, 823, 947.
Volume, Index Numbers, 823, 947, 967.
Wool, 217, 351, 954–968, 1006.
External Migration, 20–27, 999.
External Trade, 940–998, 1005–1009.
Extra-marital Conceptions, 62, 63, 65.
Extra-urban Planning, 566.

F

Factories, 405–435, 1010.
Accidents in, 809–820.
Act, 728, 731, 735, 736–739.
Dairy, 354–357, 408–119, 426, 428.
Employees, 406–412, 420, 422, 423, 427–435, 794,1010.
Fire Losses on, 633.
Promotion of, 884–886.
Factory (Dairy) Costs Allowance, 324.
Factory Production, 405–435, 881–883, 1010.
Fair Rents Act, 731, 774–776.
Fakaofo Island, 2, 3, 272, 860–862.
Fallow Land, 281, 334.
Family Allowances, 519.
Family Benefits, 95, 491, 527, 533, 539.
Family Homes Protection, 728, 773.
Fanuatapu Island, 3, 852.
Farm Costs Allowance, 324.
Farm Employees, Wage-rates, &c., 711–722, 730, 731, 736, 746–748.
Farm Finance, Provision of, 290, 293, 297, 513–518, 593, 730, 837, 838.
Farm Holdings, 280, 281.
Farm Implements, 327–331, 360.
Manufacture of, 408–419, 426, 433.
Farm Loans for Ex-servicemen, 837, 838.
Farm Machinery, 327–331, 360, 408–419, 426, 433, 972, 982.
Farm Produce—
Consumption of, 315, 824–830.
Export of, 315–326, 341, 351, 358–360, 824, 954–968, 1006–1009.
Marketing of, 315–327.
Price Indices, 704–706, 710.
Farm Stabilization Accounts, 310, 668, 673.
Farm Subsidies, 309, 310.
Farm Training and Settlement of Discharged Servicemen, 834, 835, 840.
Farmers—
Advice for, 307, 308.
Financial Assistance to, 290, 293, 297, 298, 513–518,593, 730.
Mutual Fire Insurance, 634.
Farming, 306–364, 779.
Farming Income, Gross, 310–315.
Farming Industry, Subsidies to, 309, 310.
Farming Lands, Mortgages on, 517, 650, 652, 653.
Fathers—
Ages of, 59.
Duration of Marriage of, 61.
Fauna, 13.
Feeble-minded, Schools for, 167.
Feeder Stations, Radio, 272.
Feilding Community Centre, 175.
Fellmongering-works, 408–419, 426, 430.
Female Suffrage, 17, 1022.
Female Wage-rates, 410–112, 717–725, 751.
Fern Lands, 282.
Fertilizer Works, 408–419, 426, 434.
Fertilizer used, 342.
Fertilizers, Prices of, 691.
Fertilizers, Subsidy on Manufacture of, 310.
Fertilizers, Subsidy on Transport of, 309.
Fever, Scarlet, 87, 102, 105, 109, 113.
Fibre—
Linen-flax (see linen-flax).
Phormium (see Phormium).
Field Crops, 333–347.
Fiji, Contribution to War Expenses, 479.
Film-hire Tax, 472, 496.
Film Unit, National, 1029.
Finance, Farm, 291–293, 298, 513–518, 593, 730, 837, 838.
Finance of Local Authorities, 135–137, 567–577, 1013, 1014.
Hospital Boards, 135–138.
Finance, Public, 469–518, 662–678, 903, 1011, 1012.
Fire Brigades, 634.
Fire Districts, 370, 558–578.
Fire Inquests, 178.
Fire Insurance, 625–634.
State, 637, 638.
Fire Losses, 627–634.
Fire Services Act, 900.
Fire-prevention in Forests, 370, 901.
Fires, Daily Incidence of, 633.
Fires on Vessels, 223.
Fires, Seasonal Incidence of, 632.
First Births, 60–62.
Fish, 7, 382–387.
Canned, 383, 384.
Consumption of, 827.
Exported, 384, 954, 964, 963.
Retail Prices of, 697–701.
Value of Production, 383, 882.
Fisheries, 382–387, 779, 781.
Fishing, Big-game, 385.
Fish-liver, Oil, 384.
Fixation of Prices, 315–327, 691.
Fixed Deposits, 591, 603, 605, 606.
Flats, 439, 444, 450, 456.
Flax Lands, 282, 346.
Flax, Linen, 333, 334, 346, 347, 474.
Exports of, 954, 955, 964, 965.
Flax, Phormium (see Phormium).
Floating Debt, 500, 503.
Flogging abolished, 184.
Flora, 13.
Flotation of Loans, 499, 503–505.
Flour—
Consumption of, 827.
Fixed Prices for, 691.
Production of, 428.
Restriction on Imports, 336.
Flour-mills, 408–419, 426, 428.
Flying, 201–203, 207, 256–266.
Flying Clubs, 263, 264.
Fodder Crops, 280, 332–334, 337, 338, 340–342.
Fog Signals, 222.
Food and Drugs, Sale of; 118.
Food Consumption, 824–830.
Food, Retail Prices of, 694–701, 710.
Foodstuffs, Export Prices of, 704, 705.
Foodstuffs, Wholesale Prices of, 702.
Footwear, Exports of, 954, 955.
Footwear Factories, 408–419, 426, 434.
Footwear, Imports of, 979.
Footwear, Rationing of, 830.
Footwear and Clothing, Retail Prices of, 694–700.
Foreign Consuls, 937–939.
Foreign Securities, Wartime Control of, 612.
Foreign Vessels, 212.
Foreigners, Naturalization of, 27.
Forest Fire Prevention, 370.
Forest Produce exported, 377, 378, 824, 954, 955, 963–965.
Forest Trees, 371–375.
Forestry, 365–381, 900.
Persons engaged in, 779, 781.
Value of Production, 882.
Forty-hour Week, 724, 738.
Foster Homes for Children, 167.
Foundries, 408–419, 426, 433.
Foveaux Strait Oysters, 384.
Fowls, 361, 362.
Fractions, Totalizator, 495.
Franchise, General Government, 17.
Franchise, Local Government, 17, 560, 561.
Free Ambulance, 130.
Free and Dutiable Imports, 986–998.
Free Deposits, 591.
Free Education, 149–174.
Free Radio-licences, 279.
Freehold, Crown Land made, 293.
Freehold Land, 280, 281, 293.
Freezing-works, 408–419, 426, 427, 593.
Freight—
Carried by Air-transport, 259–263.
Carried by Shipping, 210–220.
Carried by Trains, 227, 229–231, 1018.
Subsidy, 309, 397.
Train-mileage, 231.
Frequency Rates of Accidents, 810–812.
Fresh-water Fisheries, 386, 387.
Friendly Societies, 640–642, 727, 902.
Frosts, 12.
Frozen Meat Exported, 217, 314, 325–327, 358–360, 952–968, 1006.
Fruit—
Consumption of, 826, 827.
Export of, 954, 955, 963–965.
Fixation of Prices of, 693.
Imports of, 978, 986.
Industry, 281, 308, 310, 332–334, 343–345.
Retail Prices of, 696–701.
Fruit-preserving Industry, 408–419, 426, 429.
Fuel and Light, Retail Prices of, 694–700.
Fuels and Lubricants, Imports of, 972–974, 981.
Fuller's Earth, 388.
Funded Debt, 511.
Funds of Public Account, 469–480.
Funeral Funds, 641.
Furniture Loans, 515, 517, 837, 840.
Furniture-making Works, 408–419, 426, 431.

G

Gaming Act, 895, 902, 910.
Gaols, Prisoners in, 184–187, 1002.
Garden Tractors, 327, 329.
Gardens, Acreage in, 281, 333, 343.
Gardens (Commercial), Registration of, 343.
Gas, Consumption of, 432.
Gas District, 558–578.
Gasworks, 408–419, 426, 432.
Gauge, Railway, 224.
Geese, 361.
General Assembly, 14–17, 927, 928.
General Elections, 15, 886–891, 909, 910.
Generating Stations, 457–460.
Geodetic Survey, 301, 302.
Geographical Features, 3–7.
Geographic Board, 304.
Geological Survey, 393, 399, 401.
Geology, 8.
Geysers, 4.
Gift Duty, 491, 492, 494, 917.
Gilbert and Ellice Islands, 3.
Glaciers, 5.
Glue Factories, 408–419, 426, 430.
Gold, Discovery of, 7, 31, 1021.
Gold exported, 389, 954, 964, 965, 968, 1007.
Duty on, 485, 903, 991.
Gold-mining, 389.
Gold-production, 388.
Gold Reserve, 588.
Gonorrhœa, 106, 117, 118.
Goods carried on Railways, 227, 229–231, 1018.
Goods-service Licences, 250–252.
Government Departments, 865–867, 924, 925, 931, 932.
Government Finance, 469–518, 662–678, 1011, 1012.
Government Housing, 298, 299, 444–448, 453, 454, 474, 502, 518, 774, 831, 839.
Government Insurance, 634–639.
Government Railways, 224–232, 903, 904, 917, 1018.
Industrial Tribunal, 232, 749.
Superannuation Fund, 232, 549, 554.
Government Representatives Overseas, 936, 937.
Government Roads, 240.
Government Service Tribunal Act, 749, 904, 917.
Government Superannuation Fund, 549, 550, 921.
Government, System of, 14–17.
Government Valuations, Land, 579–584.
Governor-General, 923.
Powers, Duties, &c., 14.
Grading—
Of Dairy-produce, 308, 354.
Of Honey, 308.
Of Public Servants, 934, 935.
Graduated Land-tax, 486.
Graduates, University, 171.
Grain Crops, 281, 331–338, 1003.
Grain-mills, 408–419, 426, 428.
Granite, 400.
Grapes, 332, 333, 344.
Graphs (see Diagrams).
Grass Lands, 281, 282, 306, 334, 341–343.
Grass-seed, 281, 332–334, 341, 342.
Certification of, 308, 341.
Exported, 341, 954, 955, 963–965, 968, 1008.
Varieties, of 341.
Gratuities, Ex-servicemen's, 479, 600, 601.
Gravel and Sand, 388, 401.
Green Crops, 281, 333, 334, 340.
Greenstone, 400.
Greenwich Mean Time, 896.
Groceries, Retail Prices of, 694.
Gross Farming Income, 310–315.
Gross Indebtedness, 500, 501, 512, 572–577, 1011.
Of Local Authorities, 572–577, 1013, 1014.
Gross Reproduction Rate, 21.
Grounds for Divorce, 72, 73.
Grounds for War Pensions, 541.
Group Travel, 132.
Growth of Population, 19–23, 30, 31, 55.
Guaranteed Loans, 501, 574.
Guaranteed Prices, 324.
Guidance, Vocational, 164, 764, 784.
Gum, Kauri, 388, 399.
Exported, 389, 399, 954, 955, 964, 965.

H

Habitual Criminals, 183, 185–188.
Half-castes, 20, 40, 49, 95.
Half-holiday, Weekly, 741.
Half-yearly Surveys of Employment, 785–789.
Ham and Bacon, Consumption of, 825.
Ham and Bacon Curing, 408–419, 126, 427.
Harbour Boards, 558–578, 910, 1014.
Harbour-ferry Services, 250, 251, 899.
Harbours (see also Ports), 4.
Hardwood Trees, 373, 374.
Harness Works, 408–419, 426.
Harvests, 332–347, 1003.
Havana Charter, 949.
Hay, 281, 332–334, 337, 340–342.
Heads of Government Departments, 931, 932.
Health Camps, 120–121, 130.
Health, Department of, 115, 116.
Health Insurance, 519, 528, 529, 531, 533–540, 729.
Health, Occupational, 123, 124.
Health, Public, 114–148, 166.
Hearing Aids, 538.
Heavy-traffic Fees, 243, 249, 569.
Herd Testing, 308.
Hervey Islands (see Manuae).
Hides and Skins Exported, 217, 952–968, 1008, 1009.
Hides, Levy on Exports, 991.
High Commissioners, 936–939.
High Schools, 153, 160–163, 165, 170, 1001.
Higher Education, 171–174, 1001.
Highway Districts, 242, 558.
Highways, 241–245.
Taxation, 242, 243, 246, 247, 249, 472, 478, 482, 485, 486.
History of Labour Laws and Allied Legislation, 727–736.
History of New Zealand, 1020–1027.
Hoarding prohibited, 691.
Hoes, Rotary, 327, 329.
Holdings (see Land Holdings).
Holiday Camps, 131.
Holidays, 734, 737–739, 741, 742, 745, 747, 900, 916.
Holland Ministry, 925, 926.
Homo Guard, 208.
Home-nursing Services, 537.
Homes, Benevolent, 141–143.
Homes, Children's, 141–143, 166–168.
Homicide, 87, 92, 97, 102, 178, 183, 193.
Honey, 363, 364, 827.
Exported, 364, 954, 955, 964, 965.
Levy on Exports, 991.
Marketing of, 318, 364, 693.
Honours conferred, 209, 929, 930.
Hops, 281, 333, 345, 429, 693.
Export of, 954, 955.
Horse-Hieing Taxation, 495.
Horses, 329, 330, 348, 360, 361, 955, 1004.
Horticultural Station, 308.
Horticulture, 308, 343.
Hosiery, Imports of, 979.
Hosiery-factories, 408–419, 426, 435.
Hospital Benefits, 134, 478, 533–540.
Hospital Boards, 109, 134–143, 534–538, 558, 559, 564, 915.
Employees of, 578.
Employees Retiring-allowances, 556.
Finances of, 135–138.
Levies on Local Authorities, 135–138, 570.
Hospital Dietitians, 128.
Hospital Districts, 134, 558.
Hospitals, 109–113, 134–148, 533–538, 845, 850, 855.
Accommodation of, 139, 140.
Maternity, 109, 123, 138–140, 535, 536, 540.
Mental, 144–148, 535.
Military, 109.
Private, 139, 140, 439, 534–536, 540.
Private Mental, 144, 146, 147.
Public, 109–113, 138–140,534–537,540.
Staff of, 578.
St. Helens, 109, 123, 140, 141, 536.
Hostels, 785.
Hot Springs, 4, 898.
Hotels, Fire Losses on, 633.
Hotels, Licensed, 891–893.
Hotels, &c., Numbers of, 439.
Hourly Wage-rates, 715, 716.
Hours' of Labour, 424, 723–726, 738–740, 742, 745, 747.
House of Representatives, 15–17.
Members of, 928.
Household Durable Goods, Retail Prices of, 696–699.
House-rents, 692, 694–700, 773–777.
Houses (see Dwellings).
Housing, 436–456, 474, 475, 502, 513–518, 567, 728, 730, 773–777.
Local Authorities, 567.
Of Ex-servicemen, 831, 832, 837–840.
Of Maoris, 298, 299, 439, 444, 445, 730, 774, 840.
Of Miners, 743.
State, 298, 299, 445–448, 453, 454, 474, 475, 502, 518, 773.
Survey, 438, 567, 730, 774.
Transit, 567, 774.
Humphrey Island (see Manihiki).
Husbands' Petitions in Divorce, 72, 73.
Hydatids, 105, 113, 117, 118, 119.
Hydro-electric Power, 5–7, 457–468.
Used for Industrial Purposes, 405, 412, 413, 468.
Hydrogenation of Coal, 396.
Hygiene—
Child, 120–121.
Dental, 121–122.
Environmental, 118.
Industrial, 123–124.
Public, 117–119.
School, 120.
Social, 117, 118.

I

Ice-cream, 408–419, 426.
Consumption of, 825.
Illegitimate Infants—
Births of, 62, 63, 65.
In Benevolent Institutions, 141, 142.
Legitimation of, 63, 64.
Protection of, 167.
Immigration, 20–27, 75, 785, 999.
Assisted, 20, 25.
Hostels, 785.
Restriction on, 26, 772.
Imperial Airways, 261.
Imperial Government Purchases, 315–326.
Implements, Farm, 327–331, 360, 982.
Manufacture of, 408–419, 426, 433.
Import Licences, 848, 859, 948, 969, 970, 990.
Import Price Indices, 705, 706, 710.
Imported Commodities, Prices Indices, 703, 706, 710.
Importers, Bank Advances to, 593.
Imports, 821–823, 940–951, 969–986, 993–997, 1005.
Classification of, 970–974.
Currency, Restrictions on, 608, 848, 859.
Excess of Exports over, 941–944.
Free and Dutiable, 986–998.
Of Ports, 219.
Payments on Account of, 599.
Purpose or Use of, 972–974.
Restrictions on, 848, 859, 969, 970, 990.
Specie, 607, 949, 1005.
Timber, 378, 971, 984.
Valuation of, 943, 969.
Value in Sterling, 940, 947.
Value of, Index Numbers, 822.
Value on Gold Basis, 947.
Volume of, Index Numbers, 823, 947.
Improvements (Land), Value of, 579–584.
Incapacity from Industrial Accidents, 771, 809–820, 899.
Income—
Gross Farming, 310–315.
National, 484, 662–678.
Personal, 667, 668.
Private, 484, 662–678.
Incomes, 679–690.
Income-tax, 472, 482, 486–491, 670, 679–690, 900, 902, 914.
Income-tax Districts, 687.
Increase in Population, 19–23, 31, 56, 100.
Indebtedness of Local Authorities, 138, 512, 571–577, 1013, 1014.
Indebtedness, State, 499–512, 1011.
Index Numbers—
Active Note Circulation, 596.
Factory, Value of, 883.
Factory, Volume of, 423, 424, 883.
Farm, Value and Volume of, 313, 883.
Consumers' Price, 694–701.
Factory, Value of, 883.
Factory, Volume of, 423, 424, 883.
Farm, Value and Volume of, 313, 883.
Deaths, Sex-ratio, 76.
Factory, Value of, 883.
Factory, Volume of, 423, 424, 883.
Farm, Value and Volume of, 313, 883.
Electricity, consumption of, 459.
Factory, Value of, 883.
Factory, Volume of, 423, 424, 883.
Farm, Value and Volume of, 313, 883.
Export Prices, 703–705, 710.
Factory, Value of, 883.
Factory, Volume of, 423, 424, 883.
Farm, Value and Volume of, 313, 883.
Farm Production Volume, 313, 883.
Factory, Value of, 883.
Factory, Volume of, 423, 424, 883.
Farm, Value and Volume of, 313, 883.
Gross Farming Income, 313.
Factory, Value of, 883.
Factory, Volume of, 423, 424, 883.
Farm, Value and Volume of, 313, 883.
Hours of Labour, 723–725.
Factory, Value of, 883.
Factory, Volume of, 423, 424, 883.
Farm, Value and Volume of, 313, 883.
House-rent, 694–700.
Factory, Value of, 883.
Factory, Volume of, 423, 424, 883.
Farm, Value and Volume of, 313, 883.
Import Prices, 705, 706, 710.
Factory, Value of, 883.
Factory, Volume of, 423, 424, 883.
Farm, Value and Volume of, 313, 883.
Marriage-rates, 67.
Factory, Value of, 883.
Factory, Volume of, 423, 424, 883.
Farm, Value and Volume of, 313, 883.
Prices of Consumers' Goods, 703.
Factory, Value of, 883.
Factory, Volume of, 423, 424, 883.
Farm, Value and Volume of, 313, 883.
Prices of Imported Commodities, 703, 706, 710.
Factory, Value of, 883.
Factory, Volume of, 423, 424, 883.
Farm, Value and Volume of, 313, 883.
Prices of Locally-produced Commodities, 703, 706, 710.
Factory, Value of, 883.
Factory, Volume of, 423, 424, 883.
Farm, Value and Volume of, 313, 883.
Private Income, 674, 678.
Factory, Value of, 883.
Factory, Volume of, 423, 424, 883.
Farm, Value and Volume of, 313, 883.
Production, 781, 782.
Factory, Value of, 883.
Factory, Volume of, 423, 424, 883.
Farm, Value and Volume of, 313, 883.
Retail Prices, 694–701, 706, 710.
Share Prices, 707–710.
Value of Exports, 822, 947.
Value of Goods available for Use, 822.
Value of Imports, 822, 947.
Value of Production, 313, 883, 884.
Value of Trade, 947.
Volume of Exports, 823, 947, 967.
Volume of Goods available for Use, 823.
Volume of Imports, 823, 947.
Volume of Production, 313, 423, 424, 883, 884.
Volume of Trade, 947.
Wage-rates, 712–722, 725.
Wartime Price, 695, 733.
Wholesale Prices, 701–703, 706, 710.
Indians in New Zealand, 50.
Indigenous Forest, 282, 366–379.
Indirect Taxation, 663, 667, 668, 670, 672, 675, 676.
Individuals, Incomes of, 680–687.
Industrial Accidents, 727, 767–771, 809–820, 880.
Industrial Associations, 800.
Industrial Conciliation and Arbitration, 711–725, 729–763, 796–800, 807.
Industrial Disputes, 758–763, 801–808.
Industrial Distribution of Population, 778, 779.
Industrial Efficiency, 129, 884–886.
Industrial Hygiene,' 123, 124.
Industrial Life Assurance, 614, 615, 618–621.
Industrial Mobilization, 732, 733, 784.
Industrial Nurses, 124.
Industrial Planning, 884–886.
Industrial Relations Act, 898.
Industrial Share Prices, 707–710.
Industrial Unions, 727, 728, 758–763, 796–800.
Industries—
Bank Advances to, 593.
Classification of, 421–423.
Licensing of, 884–886.
Manufacturing, 405–435, 593, 794, 881–884, 1010.
Industry—
Bureau of, 884, 885.
Organization of, 420, 884–886.
Persons engaged in, 778, 779, 786–790.
State Aid to, 514–516.
Inebriates, 72, 73, 181, 186, 190, 191, 192.
Infancy, Diseases of, 84, 87, 97, 98, 102, 113.
Infant Mortality, 77–85, 97, 98, 103, 1000.
Maori, 97–98, 103.
Infantile Paralysis, 104, 105, 107, 108, 113, 117.
Infant-life Protection, 80, 81, 141, 167, 168.
Infectious Diseases—
Control of, in Schools, 120.
Deaths from, 83, 85, 87–88, 97, 98, 102, 109, 113.
Hospital Cases, 112, 113.
Notification of, 104–109.
Injuries (see Accidents).
Inland Air Mails, 259, 260, 263, 265.
Inland Fisheries, 385–387.
Inmates—
Of Charitable Institutions, 141–143.
Of Gaols, 184–187, 1002.
Of Hospitals, 109–113, 138, 139.
Of Mental Hospitals, 144–147.
Inquests, 178.
Insanity, 72, 73, 144–148.
Inscribed Debt, 572–577.
Insolvency, 657–661, 758, 764, 1019.
Inspection, Dairy, 308, 353, 354.
Inspection, Medical, of Schools, 120.
Inspection of Machinery, 727, 736, 879, 880, 914.
Inspection of Meat, 307.
Inspection of Mines, 899.
Instruments, Duty on, 494.
Instruments, Registration of, 283.
Insurance, 418, 614–639.
Earthquake, 469, 480, 516, 638, 639.
State, 634–639.
War Damage, 469, 480, 638, 639.
Intercensal Population, 18, 22, 999.
Interest—
Credited by Savings-banks, 600–603, 1016.
On Local Authorities' Debt, 570, 576, 672.
On Mortgages, 517, 518, 650, 654, 655.
On Post and Telegraph Capital Liability, 472.
On Public Debt, 472, 473, 507–509, 663, 667, 668, 671.
On Railways Capital Liability, 226.
Payments Overseas, 508, 575, 599.
Rates (see Rates of Interest).
Recouped to Consolidated Fund, 472.
Reduction of, 503, 576, 605–607, 650, 654.
Tax on (Debentures, &c., Interest), 503.
Intermediate Credit, 515, 517, 518.
Intermediate Schools, 153, 158, 159, 165.
Internal Marketing, 693.
International Air Services, 261–263.
International Comparisons (see Comparisons).
International Payments, 575, 599.
International Refugee Organization, 25.
International Trade Conference, 949.
Intestate Estates, 865–867.
Intoxicating Liquor—
Brewing of, 408–419, 426, 429.
Duty on, 429, 472, 482, 485, 989–993.
Sale of, 891–895.
Invalids, 780.
Invalids' Benefits, 528, 529, 533, 539, 913.
Invercargill Licensing Trust, 895, 910.
Investment Certificates, 499.
Investment Societies, 643–647.
Deposits, 603, 606, 647.
Investments, State, 502, 507, 512.
Investments, Totalizator, 495.
Invisible Imports and Exports, 599.
Iron and Steel Industry Act, 731.
Iron-foundries, 408–419, 426, 433.
Iron-ores, 388, 390.
Ironsands, 390, 402.
Irrigation and Water-supply, 474, 475.
Island Territories, 2, 18, 84*1–864.
Islands—
Administered on Trust, 2, 3, 18, 841, 852–860, 863, 864.
Annexed, 841–852, 861.
Outlying, 1, 841, 842.
Issue of Bank-notes (see Bank-notes).
Issue, Previous, of Parents, 60.

J

Jam-making Industry, 408–419, 426, 429.
Japanese in New Zealand, 50.
Joint Family Homes Act, 912, 913.
Joint-stock Companies, 867–873.
In Manufacturing Industries, 420.
Journal of Agriculture, 308, 341.
Journal, School, 170, 841.
Judicial Separation, 72, 73.
Judiciary, Members of, 929.
June Year Exports, 940, 964, 965, 968.
June Year Imports, 940.
Justice, 177–193, 1002.
Juvenile Offenders, 167, 189.
Juvenile Wage-rates, 719, 720, 722, 725.

K

Kale, 307, 332, 333, 335, 340, 347.
Kauri-gum, 388, 399.
Exported, 389, 399, 954, 955, 964, 965.
Kea, Destruction of, 309.
Kermadec Islands, 1–3, 18, 32, 39, 842.
Kindergarten Schools, 120, 151, 156, 157.
Knitted Goods Factories, 408–419, 426, 435.

L

Laboratory Diagnostic Services, 538, 540.
Labour Department, 728, 746, 771, 772, 782, 784, 785, 801.
Employment Bureaux, 771, 784.
Labour Disputes, 758–763, 801–808.
Labour, Farm, Allowance, 324.
Labour, Hours of, 424, 723–726, 738–740, 742, 745, 747.
Labour Laws and Allied Legislation, 727–777.
Labour Shares, 729.
Labour Unions, 727, 728, 758–763, 796–800.
Lake Wakatipu Steamer Service, 225, 227.
Lakes, 7, 457–460.
Lamb, Consumption of, 824.
Lamb exported, 358, 824, 968.
Lambs, 348–350.
Slaughtered, 358–360, 427.
Land Act, 921.
Land and Income Tax, 472, 482, 486–491, 679–689, 900, 902, 908, 919.
Land Hoards, 289.
Maori, 296–298.
Land Court, Maori, 295–297, 904.
Land Development, 290, 297, 298.
Land Districts, 282, 289, 333, 348, 349, 353.
Land Drainage Districts, 558–578.
Land for Ex-servicemen, 286–288, 292–295, 514, 515, 517, 834, 835, 912.
Land for Settlements, 280–299, 912.
Land, Government Valuation of, 579–584.
Land Holdings, 280, 281.
Mortgages on, 516, 648–656.
Land, Occupation of, 280–282.
Land Offices, 288.
Land, Purchase of, 289–294, 297.
Land Sales, Control of, 286–288, 732, 832, 912.
Land Sales Court (see Courts).
Land Settlement Board, 289, 290, 293, 921.
Land Surveys, 299–305.
Land Tenure and Settlement, 280–299.
Land Titles, Registration of, 283.
Land Transfer, 283–286, 908.
Land Valuation Court (see Courts).
Land, Valuation of, 579–584, 912.
Lands Act, Marginal, 917.
Lands open for Selection, 290, 291.
Land-settlement Accounts, 476, 480.
Land-tax, 472, 482, 486–488, 670, 900, 908.
Lapsed Assurance Policies, 616–619.
Late Night for Shops, 740.
Latest Statistical Information (see Forefront of Book).
Law and Crime, 177–193, 1002.
Law, Mortgage, 648–650.
Laws affecting Labour, 727–777.
Laws enacted in 1949 and 1950, 898–922.
League of Nations, 3, 852, 863.
Lease, Renewable, 289–293.
Leasehold-landholdings, 281, 291–293.
Leather produced, 431.
Leather-goods Works, 408–419, 426.
Legacy Duty, 491–493.
Legal Education, 171.
Legal Roads, Unformed, 240.
Legal Tender, 608, 609.
Legations, 937–939.
Legislation—
Labour and Allied, 727–777.
Passed in 1949 and 1950, 898–922.
Legislative Council, 14, 15.
Abolition of, 15, 906.
Members of, 927.
Legitimation Act, 63.
Lend-lease, Reciprocal Aid, 479, 942.
Lessees, Rehabilitation of, 650.
Letter-boxes, 267.
Letters patent, 878.
Letters posted, 265, 267, 1017.
Letter-telegrams, 269.
Levies by Fire Boards, 628, 629.
Levies by Hospital Boards, 135–138, 570.
Levy—
Coal Production, 404, 743.
Electric power, 461.
Hides Export, 991.
Honey Export, 991.
Timber, 380, 991.
Totalizator, 910.
Wool Research, 352, 991, 992.
Liabilities—
Mortgage, Adjustment of, 650.
Of Bankrupts, 658, 659, 661, 1019.
Of Banks, 588, 590, 597, 1015.
Of Building Societies, 647.
Of Electric-power Undertakings, 464.
Of Fire-insurance Companies, 626.
Of Friendly Societies, 641.
Of Life-assurance Companies, 620.
Of Local Authorities, 138, 571.
Of Reserve Bank, 588.
Liberty Loans, 505.
Libraries, Public, 1032.
Library, Alexander Turnbull, 1028.
Library Centres, National, 175, 176.
Library School, 175, 176.
Library Service—
Country, 175, 176.
National, 155, 175, 176.
School, 176.
Licences—
Aerodrome, 265.
Air Pilots, 265.
Aircraft Navigators', 265.
Anglers', 387.
By Local Authorities, 498, 567–569.
Companies', 494.
Drivers', 243, 247, 898, 914.
Export, 859, 948.
Fishing Vessels, 382, 383.
Ground Engineers', 265.
Import, 859, 948, 969, 970, 990.
Motor-vehicle, 246–248, 898, 899, 914.
Plumbers', 129.
Publicans', 891, 892.
Radio, 273, 279.
Ross Sea Whaling, 863.
Sharebrokers', 494.
Transport, 246–252, 898.
Licensed Houses, 891–895.
Licensing, 891–895, 902.
Authority, 250, 251.
Control Commission, 891–893, 919.
Poll, 893–895, 902.
Trusts, 892, 893, 895, 904, 910.
Licensing of—
Industries, 884–886.
Lotteries, 895.
Motor-vehicles, 246–248, 485, 486, 898, 914.
Private Hospitals, 139.
Sale of Alcoholic Liquor, 891–895.
Liens, Contractors', 731, 735, 757, 758.
Life Assurance, 614–621, 634, 635, 685.
Death-rates, 620.
State, 634, 635.
Life, Expectation of, 78, 79.
Lifts, Inspection of, 879, 880, 914.
Light and Fuel, Retail Prices of, 694–700.
Light Dues, 223.
Lighthouses, 222, 223, 272, 474, 475, 502.
Lignite, 392–395.
Lime and Cement Works, 408–419, 426, 432.
Lime for Top-dressing, 342.
Limestone, 388, 400, 401, 402.
Limitation Act, 916.
Linen-flax, 333, 334, 346, 347, 474, 475.
Exports of, 954, 955, 964, 965.
Linseed, 306, 333–335.
Liquidations of Companies, 867.
Literature, New Zealand, 1030–1032.
Live-stock, 348–364, 1004.
Carried on Railways, 227, 229–231, 1018.
On Maori Lands, 298.
Slaughterings of, 358.
Loans—
Allocation of, 502.
By Building Societies, 643, 645–647.
Conversion of, 503–505.
Dates of Maturity of, 503–506, 577.
Domicile of, 500, 503–506, 575–577, 1011.
National Development, 469, 480, 500, 503, 505.
Of Hospital Boards, 138.
Of Local Authorities, 138, 513, 564, 571–577, 1013, 1014.
On Assurance Policies, 620, 635.
Raised for War Purposes, 502, 505.
Redemption of, 473, 475, 476, 480, 500, 502–505, 509–511, 570, 575.
Rehabilitation, 514–517, 837–840.
State Advances, 513–518.
Supplementary, 837.
Suspensory, 514, 518, 837, 921.
Local Authorities, 134–138, 558–578, 903, 1013, 1014.
Advances to, 244, 448, 515–517, 567, 593.
Amalgamation of, 562, 563.
Assets of, 571, 572.
Borrowing, 564.
Debt of, 138, 512, 571—577, 1013, 1014.
Deposits with, 607.
Employees of, 577, 578, 789, 795.
Employment Subsidies, 784.
Expenditure of, 135–137, 464, 466, 467, 570, 571, 672, 1013.
History of, 559, 560.
Levies on, by Hospital Boards, 135–138, 570.
Liabilities of, 138,571.
Obligations under Health Act, 115.
Receipts of, 136, 567–569, 672, 1013.
Subsidy from Main Highways Account, 244.
Superannuation, 555–557.
Taxation by, 498, 564, 565, 567–569, 672, 915.
Local Consumption of Produce, 314, 315, 821–830.
Local Government (see Local Authorities).
Local Option, 894, 895.
Local Railway District, 558–578.
Local Taxation, 498, 564, 565, 567–569, 672.
Locally-produced Commodities, Price Indices, 703, 706, 710.
Location of Debt, 500, 501, 504, 506–508, 575–577, 1011.
Lockouts, 758–763, 801–808, 898.
Locomotives, 225, 226.
Lodges, Friendly Societies, 640–642.
London, Exchange on (see Exchange).
London Prices of New Zealand Stocks, 507.
Losses from Fire, 627–634.
In Forests, 370.
Loss of Earning-power, 818.
Lotteries, 895, 896, 902.
Duty on, 494, 896.
Lubricants and Fuels, Imports of, 972–974, 981.
Lucerne, 333, 334, 340.
Lump-sum Payments, 663,667, 668, 670, 673.
Lupins, 335, 347.

M

Machinery—
Accidents, 813, 880.
Factory, 412–414, 419.
Farm, 327–331, 360, 433, 982, 983.
Imports of, 971, 982, 983.
Inspection of, 727, 736, 879, 880, 914.
Magistrates' Courts (see Courts).
Magistrates, Superannuation of, 549, 555.
Magnesite, 388, 401.
Mails, 267, 1017.
Air, 259–263, 265, 266.
Main Highways, 241–245.
Account, 242, 243, 478, 481, 569, 673.
Construction and Maintenance, 241, 243–245.
Districts, 242.
Expenditure on, 243.
Finance, 242–244.
Standards, 244.
Taxation, 242, 243, 246, 247, 249, 481, 485, 486.
Maize, 310, 332–335, 340.
Male Nurses, 125, 128.
Malthouses 408–419, 426.
Malting Barley, 338.
Mangaia Island, 2, 272, 842, 843, 845–847.
Manganese ore, 388, 391.
Mangolds, 334, 335, 340.
Manihiki Island, 2, 272, 842, 843, 845, 846.
Manono Island, 3, 852.
Man-power Utilization, 732, 733, 784.
Manuae Island, 2, 842, 843, 845.
Manufacturing Production, 405–435, 881–886, 1010.
Persons engaged in, 779, 781.
Manures, Imports of, 985.
Manure Works, 408–419, 426, 430.
Manures used for Top-dressing, 342.
Maori Electorates, 15, 891.
Maori Housing, 298, 299, 439, 444, 445, 730, 774, 840.
Maori Land Boards, 296–298.
Maori Land Court, 295–297, 493, 904, 922.
Maori Religions, 47.
Maori Servicemen, Rehabilitation of, 840.
Maori Succession Duty, 493.
Maori Trustee, 298, 507.
Maori War Benefits, 539.
Maoris—
Ages of, 38, 42, 43.
Births of, 53, 54, 94, 99, 100.
Children attending Schools, 153, 158–161, 163, 165, 1001.
Deaths of, 53, 54, 75, 96–98, 101–103, 178.
Employment, 785.
Franchise, 17.
Half-castes, 20, 40, 49, 95.
In Mental Hospitals, 147.
In Prisons, 186, 191.
Infant Mortality of, 97, 98, 103.
Lands, 280, 295–299, 904, 922.
Marital Status of, 45, 46.
Marriages of, 95, 101.
Members of Parliament, 15, 891, 928.
Natural Increase of, 100.
Occupations of, 781.
Offences by, 183, 190, 191.
Overseas at 1945 Census, 43.
Population, 18, 39, 40, 49.
Poultry kept by, 361.
Rehabilitation of, 835, 840.
Religious professions of, 47.
Schools for, 152, 153, 155, 156, 158, 159, 160, 161, 163, 165.
War Service, 51.
Map of New Zealand [End of Volume], Maps, 304, 305.
Marble, 400, 401.
Marine Officers' Certificates, 222, 745.
Marital Status, 44–46.
Market Gardens, 281, 307, 332, 343, 747, 748.
Registration of, 343.
Market Prices of Shares, Yield on, 709, 710.
Marketing of Primary Produce, 315–327, 364, 399, 693, 694, 950.
Marriages, 65–73, 95, 101, 1000.
Marrows, 333, 335, 340, 343.
Masculinity Rate, 57, 65, 76, 82.
Masseurs (see Physiotherapists).
Massey Agricultural College, 152, 153, 171, 173, 174, 308, 834.
Masterton Licensing Trust, 895.
Materials used in Factories, 406, 407, 414, 417–420, 422, 427–435, 1010.
Maternal Mortality, 87, 92, 102, 113, 141.
Maternal Welfare, 123.
Maternity Allowances, 536, 556.
Maternity Benefits, 140, 535, 536, 539, 540.
Maternity Hospitals, 109, 123, 138, 140, 141, 536, 540.
Maternity Nurses, 125, 127, 128, 141, 536.
District, 141.
Maternity Services, 140, 141, 535, 536, 539.
Matured Assurance Policies, 616–619.
Maturity Dates of Loans, 503–506, 577.
Mauke Island, 2, 272, 842, 843, 845, 847.
Mean Population, 22, 23, 884, 999.
Mean Time, 896.
Measures and Weights, 299, 323.
Meat—
Bulk-purchase of, 318, 325–327, 950.
Consumption of, 824–826.
Export Control, 316.
Export of, 217, 314, 325–327, 358–360, 824, 952–968, 1006.
Export Price Index, 704, 705.
Freezing Industry, 408–419, 426, 427, 593.
Inspection of, 307.
Marketing of, 315–318, 325–327, 950.
Prices for, 326, 327.
Production, 358–360, 427.
Purchase for War Purposes, 318.
Rationing of, 829, 830.
Retail Prices of, 694, 697–701.
Wholesale Prices of, 702.
Meat-producers Board, 316, 950.
Medical Advertisements, 118, 119.
Medical Benefits, 478, 533, 534, 539, 540.
Medical Bursaries, 173.
Medical Council, 126, 903, 913.
Medical Inspection of Schools, 120.
Medical Practitioners, 126, 533, 534, 903, 913.
Medical Research Council, 125, 908.
Medical Services, 114—141, 533–540.
In Cook Islands, 845, 846.
In Nine Island, 850.
In Western Samoa, 855.
Members of Parliament, 14–17, 886–891, 927, 928.
Superannuation of, 16, 550.
Meningococcus Meningitis, 87, 102, 105, 113, 117.
Mental Hospitals, 144–1488, 535.
Mercantile Marine, 206, 209, 210–223.
Pensions, 539, 540, 544, 548, 735, 746, 902, 913.
Merchandise, Exports of, 940–968, 1005–1009.
Merchandise, Imports of, 821–823, 940–951, 969–986, 993–997, 1005.
Merchandise Transhipped, 217, 218.
Merchants, Bank Advances to, 593.
Mercury, 389, 391.
Metal Reserves of Banks, 588, 590, 609, 1015.
Meteorology, 10–13, 256, 265, 842, 849, 852.
Metropolitan Milk Boards, 558, 559.
Midwives, 125, 127, 128, 141, 535, 536.
Migration, External, 20–27, 999.
Child, 25.
Mileage of—
Commercial Air Services, 258–264.
Main Highways, 241, 244.
Railways, 224, 225, 229, 232, 1018.
Roads, 240.
Tramways Routes, 233, 239.
Mileage-tax, 242, 243, 486, 898.
Military Colleges, 199.
Military Defaulters, 17, 186.
Military Establishments, 200.
Military Forces, 198–201.
Military Hospitals, 109.
Military Pensions, 519, 540–549.
Military Training Act, 199, 901, 902.
Milk—
Boards, 558, 559.
Consumption of, 825.
Control of Prices of, 693.
Control of Sale of, 558, 693.
Districts, 558.
Dried and Condensed, Exports of, 954, 955, 961, 964, 965, 968, 1008.
Examination and Testing of, 308, 353, 354.
For School-children, 120, 166.
Marketing of, 318.
Used in Dairy Factories, 428.
Milking-machines, 327–329.
Milk-products (see Dairy-produce).
Mills, 405–435.
Mineral Waters, 898.
Minerals, 388–404.
Export Price Indices, 704, 705.
Wholesale Price Indices, 702.
Miners' Benefits, 404, 519, 529, 530, 539, 913.
Miner's Phthisis, 404, 529.
Minimum Wage-rates, 711–722, 725, 739, 741, 747, 748, 750, 751, 898, 907.
Mining, 388–404.
Accidents, 92, 395, 401, 809–820.
Act, Examinations under, 404.
Advances, 401.
Legislation, 388, 742–744, 899.
Persons engaged in, 395, 396, 398, 401, 779, 781.
Produce exported, 389, 824, 954, 964, 965, 968.
Strikes, 804, 805.
Subsidies, 397, 401.
Subsidized Prospecting, 401.
Value of Production, 388, 882.
Ministers of each Denomination, 71.
Marriages by, 71.
Ministers Plenipotentiary, 937–939.
Ministries, Successive, 923, 924.
Ministry, Holland, 925, 926.
Minors, Marriages of, 65, 70.
Mission Schools, 153, 159, 846, 851, 855–858.
Mitiaro Island, 2, 842, 843, 845, 846.
Mobilization of Industrial Man-power, 732.
Monetary Benefits, Social Security, 478, 521–533, 539, 783.
Money-orders issued and paid, 268, 1017.
Morbidity, 103–113, 641.
Mortality (see Deaths).
Of Insured Persons, 616–619.
Of Members of Friendly Societies, 641.
Mortgage Corporation, 513.
Mortgage, Dwellings with, 440.
Mortgage Exemption, 488.
Mortgagee, Rights of, 649.
Mortgagees' Indemnity Insurance, 494, 639.
Mortgages, 648–656.
Extension Emergency Regulations, 650.
Rates of Interest on, 517, 518, 650, 654, 655.
State Advances, 513–518.
Mortgagors and Lessees Rehabilitation Act, 650, 731.
Mortgagors' Liabilities Adjustment Commissions, 650.
Mortgagors' Relief, 650, 775.
Mothers, Ages of, 59, 60, 62, 63.
In Illegitimate Cases, 63.
Motion-picture Film-hire Tax, 472, 496.
Motion-picture Theatres, 876–878.
Motive-power in Factories, 412–414.
Motor Traffic Offences, 181, 183, 190–193.
Motor Transport, 227, 238, 239, 246–252.
Motor-engineering Works, 408–419, 426, 433.
Motor-omnibus Traffic, 227, 238, 239, 246–252.
Motor-spirits—
Fixed Prices for, 691.
Imports of, 981.
Resellers, Licensing of, 885.
Restrictions on Use of, 228, 247.
Taxation on, 242, 243, 486, 569, 899, 990, 992, 993.
Motor-vehicles—
Accidents, 87, 92, 93, 102, 192, 253–255.
Dormant Registrations, 248.
Drivers' Licences, 243, 247.
Duty on, 990, 996.
Imports of, 971, 985.
Insurance, 621–625, 899, 914.
Licensing of, 246–248, 898, 899, 914.
Operated by Tramway Authorities, 238–239.
Registration of, 246–248.
Taxation, 242, 243, 246, 247, 482, 485, 486, 670, 990, 996.
Traffic Offences, 181, 183, 190–193.
Motor-vessels registered, 220, 221.
Motor-ways, 245.
Motor-works, 408–419, 426, 433.
Mountains, 4.
Multiple Births, 57–59.
Municipal Tramways, 233–239.
Municipalities (see Boroughs).
Munitions and War Stores, Imports of, 972.
Murder, 87, 92, 97, 102, 178, 183, 193.
Abolition of Death Penalty for, 184.
Museums, 170.
Mussels, 383, 384.
Mustard, 335.
Mutton, Consumption of, 359, 360, 824.
Mutton exported, 358–360, 824, 964, 965, 968.
Mutton produced, 359, 360, 427.
Mutual Aid, Canadian, 479, 942.
Mutual Fire Insurance, 625, 634.

N

Namu'a Island, 3, 852.
Nassau Island, 2, 842, 844, 845.
Nassella Tussock, 558, 559.
National Airways Corporation, 257–260, 262, 266, 502, 512.
National Development Loans Account, 469, 480, 500, 503.
National Employment Service, 732, 772, 778, 784–793.
National Endowments, 380.
National Expenditure, 662–678.
National Expenditure Adjustment Act, 576, 606, 643, 650, 654, 775.
National Film Unit, 1029.
National Income, 484, 662–678.
National Income and Economic Policy—Appendix (e), 1033–1089.
National Library Service, 155, 175, 176.
National Licensing Polls, 893, 894.
National Parks, 282.
National Physical Welfare and Recreation, 130–133.
National Provident Fund, 507, 555–557, 729, 915.
National Savings, 499, 507, 603, 604.
National Security Taxation, 472, 479, 482, 497, 670, 712.
Nationality, 27, 28.
Of Naturalized Persons, 28, 29.
Of Overseas Shipping, 212.
Of Registered Aliens, 30.
Native Bush, 282, 366.
Native Fresh-water Fishes, 386.
Native Grasses, 282, 334.
Natives (see Maoris).
Natural Increase of Population, 20/21, 31, 55, 56, 100.
Naturalization, 27–29.
Nauru Island, 2, 342, 841, 863, 864.
Naval Cadetship Examinations, 154, 196, 197.
Naval Casualties, 205, 206, 209.
Naval Defence, 195–198, 208, 916.
Naval Expenditure, 198, 479.
Naval Reserve, 196, 197.
Naval Station, 195.
Navigators Island (see Western Samoa).
Negroes in New Zealand, 50.
Neo-natal Deaths, 77, 80–87, 97, 98.
Nephrite, 400.
Net Indebtedness—
Local Authority, 571–574.
State, 511, 512.
Net Reserve Ratio, 587, 588.
New Zealand Broadcasting Service, 170, 275–279, 507.
Commercial Division, 278, 279.
National Division, 277, 278.
New Zealand Citizenship, 28.
New Zealand Dairy Board, 316, 327.
New Zealand Mean Time, 896.
New Zealand Red Cross Society, 130.
New Zealand Representatives Overseas, 936, 937.
New Zealand University, 153, 162, 171–174.
Newspapers—
Posted, 267.
Registered, 268.
Revenue from, 432.
Nisi Decrees in Divorce, 72.
Nine Island, 1, 2, 18, 26, 39, 841, 842, 849–852, 968.
Radio Communication, 272.
No-license Issue, 893–895, 902.
Non-resident Traders, Incomes of, 680, 689.
Note-issue, 586, 588–590, 595, 596, 608, 609.
Notes in Circulation, 587, 595, 596, 1015.
Notification of Births, 53.
Notifications of Diseases, 104, 105, 117.
Notified Vacancies, National Employment Service, 790–793.
Noxious Weeds Eradication, 309, 916.
Nukunono Island, 2, 3, 860–862.
Radio Station, 272.
Nullity of Marriage, 72, 73.
Nurseries and Plantations, 281, 343, 379–381.
State, 379, 380.
Nurses—
Dental, 121.
District, 120, 129, 141.
Industrial, 124.
In Public Hospitals, 578.
Male, 125, 128.
Maternity, 125, 127, 128, 141, 536.
Pensions for, 542, 556.
Plunket, 120, 125, 141.
Psychiatric, 125, 128.
Registration of, 125, 128.
Retiring-allowance for, 556.
School, 120.
Nursing Aides, 125, 128.
Nu'ulua Island, 3, 852.
Nu'usafe'e Island, 3, 852.
Nu'utele Island, 3, 852.

O

Oatmeal, Consumption of, 827.
Oatmeal, Exported, 954, 955.
Oatmeal, Production of, 428.
Oats, 306, 307, 330–335, 337, 340, 347, 1003.
Varieties of, 337.
Observatory, Time Signals from, 278, 897.
Occupants of Dwellings, 441, 445.
Occupation of Land, 280–282.
Occupational Health, 123, 124.
Occupational Re-establishment, 832, 838.
Occupational Status, 780, 781.
Occupational Therapists, 127, 899.
Occupational Training of Discharged Servicemen, 832–834, 838.
Occupations of Bankrupts, 660.
Occupations of Maoris, 781.
Ocean Cables, 272.
Ocean Island, 342, 864.
Offences, 180–193.
By Children, 167, 189.
By Maoris, 183, 190, 191.
By Women, 180, 182, 190, 191.
Reported to Police, 192, 193.
Offenders Probation Act, 183, 188.
Officers' Certificates (Marine), 222, 745.
Offices Act, Shops and, 731, 735, 739–742.
Official Assignees, 657, 658, 1019.
Official Representatives, 936–939.
Officiating Ministers, 66, 71.
Oil, Production from Coal, 396.
Oil-wells, 399.
Old-age Pensions, 519, 729.
Old People's Homes, 141–143.
Omnibus Traffic, 227, 238, 239, 246–252.
Omnibuses licensed, 247.
Onekaka Iron-ore, 390.
Onions, 310, 332–334, 339, 347, 954, 955, 998.
Opencast Mining, 396.
Opening Hours of Shops, 741.
Opium, Prohibition of, 118.
Opossum-skins exported, 954, 955, 964, 965.
Opticians, Registration of, 128.
Orchards, 281, 306, 308, 310, 332, 333, 334, 343, 344, 747, 915.
Ordinary Life Assurance, 614–617, 619, 620, 634.
Organization of Industry, 420, 421, 884–886.
Origin of Imports, 974–986.
Ornamental Stones, 400.
Orphanages, 141–143.
Orphans' Benefits, 526, 539, 913.
Ottawa Agreement, 987, 993.
Outlying Islands, 1, 841, 842.
Out-patients, 139, 140.
Maternity Hospitals, 140.
Output of Factories, 406–135, 1010.
Overdraft Authorities, 594.
Overdraft Rates, 605.
Overseas Air Services, 261–263.
Overseas Air-mails, 261–263, 266.
Overseas Assets of Banks, 588, 590, 597, 598.
Overseas Born, Duration of Residence of, 49.
Overseas Companies, 626, 629, 868–870.
Overseas Parcel-post, 268.
Overseas Passenger Duty, 494.
Overseas Payments, 575, 599, 945, 946.
Overseas Receipts, 599, 945, 946.
Overseas Representatives, 936–939.
Overseas Shipping, 210–220, 744–746.
Overseas Trade, 940–998, 1005–1009.
Overseas War Service, 51, 52.
Overtime, 412, 424, 425, 738–740, 742, 745, 747.
Overtime Legislation Modification, 732.
Owner Occupied Houses—
Costs of, 662, 696.
Rental Value of, 667, 668, 674.
Oysters, 383–385, 954.

P

Pacific Cable, 272.
Pacific Islands, Annexed, 841–852.
Bibliography, 1032.
Radio Communication, 272, 847, 851.
Packing-case Factories, 408–419, 426, 431.
Paid Holidays, 737, 738, 741, 742, 745, 747.
Paint Works, 408–419, 426.
Palmerston Island, 2, 272, 842, 843, 845.
Pan-American Airways, 262, 266.
Paper Bag and Box Factories, 408–419, 426.
Paper, Imports of, 971, 984.
Paralysis, Infantile, 104, 105, 107, 108, 113, 117.
Parcel-post, 265, 267, 268, 952.
Parents—
Ages of, 59–63.
Duration of Marriage of, 61.
Previous Issue of, 60.
Parks, National, 282.
Parliament, 14–17.
Members of, 886–891, 928.
Parliamentary Elections, 15, 886–891.
Parliamentary Under-Secretaries, 14, 926.
Parliaments, Successive, 926.
Parry Island (see Mauke).
Party-line Telephones, 270.
Passenger-mileage—
Air Services, 258, 260–263.
Railways, 229.
Tramways, 233, 235, 239.
Passengers—
Commercial Aircraft, 259–264.
Motor-vehicle, 229, 239.
Overseas, 24, 999.
Railway, 229, 230, 1018.
Tramway, 233, 235, 239.
Passenger Services, 250–252.
Passenger-tickets, Duty on, 494.
Passion-fruit, 281, 333.
Passports, 26.
Pastoral and Agricultural Production, 306–364, 881–883, 1003.
Persons engaged in, 779, 781.
Value of, 310–315, 881–883.
Volume of, 312, 313, 883.
Pastoral Produce—
Consumed locally, 315, 824–827.
Export of, 315–327, 351, 358–360, 364, 824, 952–968, 1006–1009.
Export Prices Indices, 703–706, 710.
Gross Farming Income, 310–315.
Purchase for War Purposes, 318, 319, 321, 322, 950.
Wholesale Prices Indices, 702.
Pasture Grasses, 281, 306, 334, 340–342.
Patents, Designs, and Trade-marks, 878, 879.
Patients in Mental Hospitals, 144–147.
Patients in Public Hospitals, 109–113, 138, 139.
Patriotic and Canteen Funds, 901, 916.
Payments Overseas, 575, 599, 945, 946.
Peaks, Altitude of, 5.
Pears, 307, 332, 344, 345, 826, 954, 955, 964, 965.
Peas, 306, 332–3.35, 343, 827.
Export of, 954, 955, 963, 964, 965, 968.
Pelts, Export of, 217, 954–968, 1009.
Penal Institutions, 184–187, 1002.
Penalty on Unpaid Rates, 568.
Penrhyn (Tongareva) Island, 2, 272, 842, 843, 845–847.
Pensions, 519–557, 663–678, 729, 735, 746, 902, 913.
Pensions Department, History of, 519.
Permanent Building Societies, 643–647.
Permanent Heads of Departments, 931, 932.
Permanent Military Forces, 198–201.
Permits and Passports, 26, 27.
Permits, Building, 436, 437, 448–452.
Personal Accident Insurance, 621–624.
Personal Consumption, Value of, 665, 667.
Personal Income, 667, 668.
Persons, Displaced, 25.
Petitions—
Bankruptcy, 657, 658.
Divorce, 72, 73.
Petrol (see Motor-spirits).
Petroleum, 388, 398, 399, 981.
Pharmaceutical Benefits, 534, 539, 540.
Pharmacy, 129.
College of, 129.
Plan, 885.
Phormium, 282, 346, 885.
Fibre exported, 954, 955.
Phosphate Rock, 399, 400, 434.
From Nauru Island, 2, 342, 864.
Phthisis (see Tuberculosis).
Miner's, 404, 529, 743.
Physical Education, 130–133, 166, 169.
Physical Welfare, 130–133, 166.
Physiography, 1–7.
Physiotherapists, 127, 899.
Physiotherapy Benefits, 537, 540.
Pickle-factories, 429.
Picture-theatres, 876–878.
Pig-meats, 358–360, 427, 824.
Pigs, 348, 357–359, 1004.
Slaughtered, 358–360, 427.
Pilots, Air, 264, 265.
Pisciculture, 386.
Placement Service, 772, 784, 790–793.
Plaints, 177.
Planning, Industrial, 884–886.
Planning, Town, 566.
Plantations, 281, 334, 343, 379–381.
State, 379, 380.
Plants, New Zealand, 13.
Platinum, 392.
Pleasant Island, (see Nauru).
Plumbers, Registration of, 129, 907.
Plunket System, 81, 129, 141.
Plural Births, 57–59.
Plural Voting Abolition, 17, 728.
Poisoning, 92.
Poisons, 118.
Police Force, 178–180.
Offences reported to, 192, 193.
Superannuation, 549, 550.
Policies, Insurance, 614–639.
Poliomyelitis, 104, 105, 107, 108, 113, 117.
Political Disabilities Removal, 16.
Polling—
At General Elections, 886–891.
At Licensing Polls, 893, 894.
Population, 18–52, 884, 886–890, 999.
Age Distribution, 38, 41–45.
Industrial Distribution, 778, 779.
Method of Compilation, 18.
Occupational Status of, 780.
Of Campbell Island, 18.
Of Cook Islands, 18, 844, 845.
Of Kermadec Islands, 18, 842.
Of Nauru Island, 864.
Of Nine Island, 18, 850.
Of Tokelau Islands, 18, 861, 862.
Of Western Samoa, 18, 854.
Pork consumed, 825.
Pork exported, 359, 360, 824, 964, 965, 968.
Portfolios of Ministers, 924, 925.
Ports—
Fishing, 383.
Of Arrival, 211.
Of Departure, 211.
Of Registry, 220.
Shipping of, 211, 214–220.
Trade of, 210–220.
Post Office Account, 480.
Post Office Employees, 274, 789.
Accidents to, 809–820.
Superannuation of, 550–553.
Post Office investment Certificates, 499.
Post Office Savings-bank, 600, 601, 603, 604, 606, 727, 1016.
Postal and Telegraphic, 267–274, 472, 1017.
Tribunal, 749, 754.
Postal Notes, 269, 1017.
Postponement of Census, 19.
Post-primary Education, 153,154,160–164, 165, 170, 1001.
Post-war Price Control, 692, 693.
Potatoes, 306, 332–334, 338, 339, 693, 906.
Areas and Yields, 338, 339.
Consumption of, 826.
Export of, 954, 955, 964, 965.
Marketing of, 318.
Subsidy on, 310.
Pottery-works, 408–419, 426, 432.
Poultry, 361–363, 827.
Poultry foods, Subsidy on, 310.
Poultry-runs Registration, 363.
Pounamu (Greenstone), 400.
Power Boards, 460–462, 558–578, 1014.
Power, Electric (see Electric).
Power used in Factories, 412–414.
Preferential Tariff, 986–990, 993–998.
Pregnancy, Diseases, &c., of, 87, 92, 102, 105, 113, 117, 144.
Premiers, Successive, 923, 924.
Premium Income, 614–639.
Preserved Meats, Production of, 427.
Prevention of Crime Act, 187.
Prevention of Disease, 120.
Prevention of Forest-fires, 370.
Prevention of Hydatids, 118, 119.
Prevention of Profiteering, 691, 731.
Prevention of Quackery, 119.
Previous Issue of Parents, 60.
Price Levels, Spread in, 314.
Price Tribunal, 397, 691, 692.
Prices, 691–710.
Collection of, 698, 701.
Effect on Exports, 947, 966–968.
Effect on Imports, 947.
Fixation of, 691.
Of New Zealand Stocks, 507.
Post-war Control of, 692, 693.
Regulation of, 691–693.
Stabilization of, 309, 397, 691–693, 733.
Wartime Index, 695.
Primage Duty, 987, 993.
Primary Products—
Consumption of, 315, 824–830.
Export of, 314–327, 351, 358–360, 952–968, 1006–1009.
Marketing of, 315–327, 364, 399, 693, 694, 950.
Purchase for War Purposes, 318, 319, 321, 322, 950.
Primary Schools, 151–154, 156–160, 165, 166, 856, 1001.
Prime Ministers, Successive, 923, 924.
Principal Events, 1020–1027.
Printing Establishments, 408–419, 426, 432.
Prisoners of War, 41, 209.
Prisons and Prisoners, 184–187, 1002.
Prisons Board, 187, 188.
Private Assignments, 661.
Private Companies, 420, 868–873.
Private Disposable Income, 677, 678.
Private Dwellings, 436–456.
Private Gardens, 281, 343.
Private Hospitals, 139, 140, 439, 534–536, 540.
Private Income, 484, 662–678.
Private Mental Hospital, 144, 146, 147.
Private Radio-stations, 273, 275.
Private Railways, 232.
Private Savings, 665–669.
Private Savings-banks, 602–604, 606.
Private Schools, 153, 156, 159, 160, 161, 165, 1001.
Probation, 181, 188.
Probationary Teachers, 169.
Producers' Equipment, Imports of, 972–974.
Producers' Materials, Imports of, 972–974.
Producers' Materials, Wholesale Prices of, 703.
Production—
Agricultural and Pastoral, 306–364, 881–884, 1003.
Clothing, 435.
Dairy, 354–357, 426, 428, 882.
Factory, 405–435, 881–883, 1010.
Fisheries, 382–387, 882.
Local Consumption of, 314, 315, 824–830.
Meat, 359, 360.
Mineral, 388–404, 882.
Timber, 376, 377, 431, 882.
Value of, 312–315, 821, 881–884.
Volume of, 313, 423, 424, 821, 883, 884.
Wool, 311, 351, 352.
Professions, Religious, 46, 47.
Professors, University, 171, 173.
Profiteering, Prevention of, 691, 731.
Profit-sharing, 729, 898.
Programmes, Radio, 275–279.
Prohibited Immigrants, 26, 27.
Prohibited Imports, 969, 970, 990.
Prohibition Issue, 893, 894.
Prohibition Orders, 181, 191.
Prolongation of Parliament, 16.
Promotion of Employment, 731, 772, 783–790.
Promotion of Industries, 772, 884–886.
Properties Transferred, 283–286.
Proprietary Income, Taxation of, 680, 682.
Proprietors, Working, 785–787.
Prorogation of Parliament, Dates of, 926.
Prospecting, State Aid to, 401.
Prospecting-drills, 398, 399.
Protection of Wages, 731, 757–758.
Provident Fund, National, 555–557, 729, 915.
Provincial Districts, 559.
Area and Population of, 31.
Density of Population in, 39.
Factory Production in, 407.
Provincial Education Boards, 149.
Provincial Governments, 149, 224, 559.
Provisional State Forests, 366.
Psychiatric Nurses, 125, 128.
Public Buildings, Expenditure on, 474, 502.
Public clocks, 89.
Public Companies, 867–873.
Public Debt, 499–5.2, 1011.
Repayment of, 473, 475–477, 479, 500–503, 509–511, 673.
Public Domains, 282.
Public Finance, 469–518, 662–678, 1011, 1012.
Public Health, 114–148, 166.
Public Hospitals (see Hospitals).
Public Hygiene, 117–119.
Public Libraries, 1032.
Public Reserves, 280, 282.
Public Schools, 149–170, 1001.
Public Service, 748, 749, 932–936.
Board of Appeal, 935, 936.
Civil Service Act Pensions, 539.
Classification, 934, 935.
Commission, 932–934.
Employees, 936.
Entrance Examination, 154, 936.
Superannuation, 549–553.
Public Trust Office, 607, 614, 865–867.
Public Works—
Accidents, 809–820.
Account, 241, 242, 469–471, 474, 475, 480.
Co-operative System, 729, 730.
Employees, 795.
Housing Construction, 445–448, 453, 454, 474, 475, 774.
Railway Construction, 224, 474, 475.
Road Construction, 241, 474, 475.
Public Works and Services, Maintenance of, 473, 474, 671.
Publicans' Licences, 569, 891, 892.
Publications—
Agriculture Department, 308, 341.
Census, 40.
Census and Statistics Department (see Forefront of Book).
Education Department, 170.
General Bibliography, 1030–1032.
New Zealand Flora, 13.
Register of, 268.
Publishing Works, 408–419, 426, 432.
Puerperal Accidents, &c., 87, 91, 92, 102, 105, 144.
Puisne Judges, 929.
Pukapuka (Danger) Island, 2, 272, 842, 843, 845, 846.
Pulmonary Tuberculosis (see Tuberculosis).
Pumice, 388, 401, 408–419, 426, 954.
Pumpkins, 333, 335, 340, 343.
Punishments by Courts, 182–192.
Pupils, School, 153–166, 1001.
Purchase of Land for Settlement, 289–294, 834, 835, 838.
Pure Food Laws, 118.
Purpose or Use of Imports, 972–974.

Q

Quackery-prevention, 119.
Quadruplets born, 58.
Quarries, 401, 742, 744.
Accidents at, 401, 809–820.
Persons engaged in, 401, 779, 781.
Quartzite, 388.
Quartz-mining, 389.
Quicksilver, 389, 391.
Quinnat Salmon, 387.
Quinquennial Census, 18–22, 31–33, 39–52, 783.
Quorum—
Executive Council, 11.
House of Representatives, 17.
Quota, Country, 15.
Quotations, New Zealand Stocks, 507.

R

Rabbit Districts, 309, 558–578.
Rabbit-skins exported, 954, 955, 962, 964, 965, 968, 1008.
Rabbits, Destruction of, 309, 900.
Race Aliens, 49–51.
Racial Origins, 49–51.
Racing, Tax on, 482, 494–496.
Radiation Protection, 124, 125.
Radio Advertising, 278.
Radio Beacons, 222, 223.
Radio Broadcasting, 170, 275–279, 897.
Radio Communication, 272, 273, 847.
Radio Engineering, 408–419, 426.
Radio Licences, 273, 279.
Radio Stations, 272, 273, 275–278, 842, 847, 851.
Radio Time-signals, 278, 897.
Radioactive Substances Act, 736, 904.
Radiologists, 536, 537, 540.
Raffles, 895, 902.
Rail Cars, 225.
Rails, Weight of, 224.
Railway Accidents, 93, 232, 254, 809–820.
Railway District, 558–578.
Railway Equipment, Imports of, 972, 982.
Railway Fares, School-children's, 164.
Railways, 224–232, 736, 903, 904, 917, 1018.
Air Freight Service, 259.
Private, 232.
Revenue and Expenditure, 226–229, 477, 480, 1018.
Superannuation Fund, 232, 549, 554.
Tribunal, 232, 749, 754.
Rain Forests, 371.
Rainfall, 10–13.
Rakahanga (Reirson) Island, 2, 842, 843, 845.
Raoul Island, 842.
Rape, 307, 332–335, 340, 347.
Rarotonga Island, 2, 272, 842, 843, 845–847.
Rateable Value of Land, 584.
Rates, Local Authority, 466, 498, 567–569, 672, 915,916, 1013.
Rates of Exchange, 610–612.
Rates of Interest—
On Building Societies' Deposits, 606.
On Company Deposits, 606.
On Fixed Deposits, 605–607.
On Local Authorities' Debt, 576.
On Mortgages, 517, 518, 650, 654, 655.
On Public Debt, 503–509.
On Rehabilitation Loans, 837.
On Rural Intermediate Credit, 518.
Paid by Savings-banks, 600, 606.
Reduction of, 503, 576, 577, 605–607, 650, 654.
Rates of Pensions, 541–545.
Rates of Tax, 486–491, 686, 687, 689.
Rates of Wages, 411, 412, 692, 711–722, 725, 739, 741, 742, 747, 748, 750–754, 907.
Emergency Regulations, 713, 737.
Rating by Local Authorities, 135, 564, 565, 915, 916.
On Unimproved Value, 565.
On Urban Farm Lands, 582.
Rationing, 828–830.
Receipts, Overseas, 599, 945, 946.
Receiving-homes, 141–143, 167.
Receiving-stations, Radio, 272, 273, 279.
Reciprocal Benefits, 478, 519, 532, 533.
Reciprocal Aid, Lend-lease, 479.
Reciprocal Tariff and Trade, 993–998.
Recreation and Physical Welfare, 130–133, 167.
Recruiting—
Air Force, 201.
Army, 198.
Navy, 197.
Police, 179.
Red Cross Society, 130.
Redemption of Loans, 473, 475, 479, 500, 502–505, 570, 573, 575.
Redemption of Mortgages, 649.
Redemption of Savings Bonds, 603.
Reduction of Interest, 503, 576, 577, 605–607, 650, 654.
Reduction of Mortgages, 650.
Reduction of Rent, 650, 774–777.
Reduction of Wages, 730, 751.
Re-exports, 965, 966.
- Referendum, Compulsory Military Training, 896, 898.
Referendum, Licensing, 893.
Reformative Detention, 168, 183, 185–189.
Refuge Homes, 141–143, 167.
Refugee Organization, International, 25.
Refunds to Racing Clubs, 495.
Regional Councils of Adult Education, 175.
Regional Planning, 566.
Registered Companies, 867–873.
Registered Factories, 406.
Registered Mortgages, 651–655.
Registered Vessels, 220, 221.
Registrars, Marriages before, 65, 71.
Registration—
Of Adopted Children, 64.
Of Soldiers, &c., 75.
Of Aliens, 29–30.
Of Soldiers, &c., 75.
Of Apiaries, 364.
Of Soldiers, &c., 75.
Of Apprenticeships, 764.
Of Soldiers, &c., 75.
Of Births, 53, 54, 94, 95.
Of Soldiers, &c., 75.
Of Building Societies, 643.
Of Soldiers, &c., 75.
Of Chemists, 129.
Of Soldiers, &c., 75.
Of Companies, 867.
Of Soldiers, &c., 75.
Of Dairy Companies, 354, 901.
Of Soldiers, &c., 75.
Of Deaths, 74, 75, 96.
Of Soldiers, &c., 75.
Of Deeds, 283.
Of Dentists, 126.
Of Designs, 878, 879.
Of Electors, 17,560, 561.
Of Fishing Vessels, 382.
Of Friendly Societies, 640.
Of Hospital Dietitians, 128.
Of Illegitimates, 63, 64.
Of Industrial Unions, 796.
Of Land Titles, 283.
Of Male Nurses, 125, 128.
Of Maori Births, 53, 94.
Of Maori Deaths, 75, 96–98.
Of Maori Electors, 17.
Of Market Gardens, 343.
Of Marriages, 65, 66, 95.
Of Masseurs (See Physiotherapists).
Of Maternity Nurses, 125, 127, 128.
Of Medical Practitioners, 126.
Of Midwives, 125, 127, 128.
Of Mortgages, 651–655.
Of Motor-vehicles, 246–248, 898.
Of Newspapers, 268.
Of Nurses, 125, 127, 128.
Of Nursing Aides, 125, 128.
Of Occupational Therapists, 127, 899.
Of Opticians, 128.
Of Orchards, 344.
Of Patents, 878, 879.
Of Pharmaceutical Chemists, 129.
Of Physiotherapists, 127.
Of Plumbers, 129.
Of Poultry-runs, 363.
Of Private Schools, 159.
Of Psychiatric Nurses, 125, 128.
Of Soldiers Killed or Missing, 75.
Of Still-births, 53, 65, 74.
Of Trade-marks, 878, 879.
Of Trade-unions, 796.
Of Unemployed, 784.
Of Vessels, 220, 221.
Registration Fee, Social Security, 482, 496, 520.
Registry, Ports of, 220.
Regulation of Prices, 691–693.
Regulation of Wages, 711–713.
Rehabilitation, 479, 514–517, 650, 671, 746, 764, 831–840.
Reirson Island (see Rakahanga).
Relief, Charitable, 134–137, 141–143.
Relief Fund, Coal-miners', 404, 743.
Relief of Mortgagors, 650.
Relief of Unemployment, 530–531, 533, 729, 771, 772, 783.
Religious Denominations, 46, 47, 71.
Marriages by Ministers of, 71.
Officiating Ministers, 71.
Religious Professions, 46, 47, 71.
Renewable Leases, 289–293.
Rent Reductions, 650, 774–777.
Rent Restriction, 774–777.
Rented Dwellings, 440, 444.
Renters, Film Taxation of, 496.
Rents, House, 692, 694–700, 774–777.
Rents, Stabilization of, 692, 733, 775.
Repayment of Public Debt, 473, 475–477, 479, 500, 503–505, 509–511.
Representatives, House of, 15–1.
Election of, 16, 886–891.
Members of, 928.
Representatives Overseas, 936, 937.
Reproduction Rate, 21.
Research, Agricultural, 307, 308, 336, 346.
Research, Coal, 392–394.
Research, Dental, 122.
Research, Educational, 174.
Research Institute, Wheat, 336.
Research, Medical, 125, 908.
Research, Mining, 401–403.
Research Scholarships, 172.
Research, Wood-utilization, 369.
Reserve Bank, 499, 507, 512, 585–588, 589, 593, 595–599, 604, 605, 608–613, 906, 945, 949.
Reserves, Air Force, 201, 912.
Reserves, Military, 198, 911.
Reserves, Naval, 196, 197.
Reserves, Public, 280, 282.
Restitution of Conjugal Rights, 72, 73.
Restoration, Salary and Wage cuts, 751.
Restriction, Immigration, 26, 772.
Restrictions on Consumption, 828–830.
Restrictions on Employment, 739, 742, 748.
Restrictions on Imports, 336, 608, 848, 859, 948, 969, 970, 990.
Retail Prices, 694–701, 706, 710.
Retailers, Bank Advances to, 593.
Retardate Children, 152, 168.
Returnable Income, 680, 683, 684, 688, 689.
Revaluations, Land, 581.
Revenue, 469–480, 662–678, 1012.
Cinematograph Theatres, 877, 878.
Customs, 482, 485, 992, 993.
Electric-power, 461, 462, 464, 466, 569.
Local Authority, 136, 461, 466, 567–569, 672, 1013.
Postal, 269,273, 1017.
Railway, 226–228, 231, 477, 1018.
Social Security Fund, 478, 482, 496, 497, 520.
State Forests, 379.
Tramway, 234–237, 239.
Reverse Lend-lease, 479.
Review, Court of, 650.
Review of Legislation, 898–922.
Rhodes Scholarships, 172.
Rifle Clubs, 200.
River Districts, 558–578.
Rivers, 6, 7, 457–460.
Control of, 367, 474, 475, 558.
Road Accidents, 87, 93, 253–255.
Road Districts, 558–578.
Bridges in, 240.
Debt of, 571, 575.
Mileage of Roads, 240.
Road Safety, 253.
Road Safety Council, 253.
Road Transport, 227, 238, 239, 249–252.
Roading Costs, 242–246, 475, 478.
Roads, 240–255.
Expenditure on, 242–246, 403, 475.
Taxation, 242, 243, 246, 247, 249, 482, 485, 486, 990.
Rock Oysters, 383–385.
Roll, Valuation, 579, 580.
Rolling-stock—
Railway, 225, 226.
Tramway, 233.
Roman Catholic Schools, 152, 160, 846, 856–858.
Root Crops, 281, 306, 332–335, 338–340.
Ross Dependency, 2, 3, 18, 841, 863.
Whaling, 863.
Rotary Hoes, 327, 329.
Rotorua Thermal Springs, 898.
Royal Naval Reserves, 196, 197.
Royal New Zealand Air Force, 201–203, 206–209.
Royal New Zealand Navy, 195–198, 205–209.
Rubber goods and Vulcanizing Industry, 408–419, 426.
Rural Advances, 290, 293, 513–518, 730.
Rural Education, 164–166.
Rural Housing, 446, 448, 452–454, 515, 567, 774.
Rural Intermediate Credit, 515, 517, 518.
Rural Mail Deliveries, 267.
Rural Mortgages, 515, 650, 652, 653.
Rural Population, 32, 33.
Country Quota, 15.
Ryecorn, 333, 335.

S

Saddlery Works, 408–419, 426.
Sailing-vessels registered, 220, 221.
St. Helens Hospitals, 109, 123, 140, 141, 536.
Salaries and Wages, 406, 407, 410–412, 427–435, 462, 463, 667, 668, 674, 677, 678, 1010.
Charge on, 478, 482, 496, 520, 712.
Cuts in, 730, 751.
Restoration of, 751.
Salaries of Members of—
Executive Council, 14.
House of Representatives, 16.
Legislative Council, 15.
Public Service, 934.
Sale of Food and Drugs, 118.
Sale of State Houses, 518, 920.
Sale of State Timber, 378.
Sales Tax, 472, 482, 497, 498, 670, 903.
Salmon, Acclimatization of, 387.
Salt, 400.
Samoa (see Western Samoa).
Sanatoria, 109, 138, 139.
Sand and Gravel, 388, 401.
Sanitary Plumbing, 129.
Sanitation, 114–120.
Sash and Door Factories, 408–419, 426, 431.
Sauce-factories, 429.
Sausage-casings, Export of, 954, 955, 962, 964, 965, 968.
Savage Island (see Nine).
Savai'i Island, 3, 852.
Savings Accounts (National), 499, 603, 604.
Savings Bonds (National), 499, 603.
Savings, Private, 665–669.
Savings-banks, 600–604, 606, 727, 1016.
Sawmills, 379, 408–419, 426, 431.
Scaffolding Accidents, 809–820.
Scenic Reserves, 282.
Scheelite, 390, 954.
Scholarships, 172, 173.
School Bursaries, 163.
School Certificate, 152, 154, 934, 936.
School Committees, 149, 150.
School Inspectors, 157, 159, 161.
School Journal, 170.
School Savings-bank, 601.
School System, 151–153.
School-children, 153, 167, 1001.
Apples for, 166.
Board and Conveyance of, 164, 165.
Dental Treatment of, 121.
Medical Inspection of, 120.
Milk for, 120, 166.
Schools, 151–176, 846, 851, 855–858, 1001.
Carpentry, 832.
Consolidation of, 164.
Dental Clinics, 121.
Military, 199, 200.
Of Agriculture, 153, 171, 173, 174, 308, 309, 834.
Of Mines, 171, 401, 403.
School-teachers, 159, 160, 168–170, 846, 851, 857, 858.
Superannuation, 553, 554.
Scrub Lands, 282.
Sea-fisheries, 382–386.
Seals, 385.
Seamen Act, Shipping and, 735, 744–746, 919.
Seamen, Pensions for, 539, 548, 746.
Seamen, Rehabilitation of, 746.
Season Tickets, Railway, 229, 230.
Seasonal Employment, 409, 410, 793, 794.
Seasonal Incidence of Fires, 632, 633.
Secondary Education, 150–155, 160–166, 170, 1001.
Second-growth Land, 282.
Secular System of Education, 149.
Seed-gardens, 281, 343.
Seeds, Grass, and Clover, 281, 332–334, 341.
Certification of, 308, 341, 347.
Exported, 217, 341, 954, 955, 963–965, 968, 1008.
Seismology, 8, 9.
Selections of Lands, 289–293.
Senior Cadets, 200.
Sentences on Criminals, 180–192, 1002.
Separate Rates, 564.
Separation, Judicial, 72, 73.
Separators, Cream, 327.
Septicemia, Puerperal, 92, 117.
Serpentine, 389, 400, 401, 402, 434.
Service Marriages, 66.
Service, Public (see Public Service).
Service-car Licences, 247.
Servicemen—
Acquisition of Land by, 286–288, 292–295, 732, 832, 834, 835.
Awards to, 209.
Bursaries to Dependants, 163.
Casualties Overseas, 208, 209.
Demobilization of, 839.
Educational Facilities for, 835, 836.
Financial Assistance to, 294, 514, 515, 517, 837–839.
Overseas War Service of, 51, 52.
Pensions for, 520, 540–549.
Registration of Deaths of, 75.
Rehabilitation of, 479, 514, 515, 517, 671, 746, 764, 831–840.
Voting by, 886.
Servicemen's Settlement and Land Sales Act, 286–288, 292–295, 732, 746, 912.
Applications under, 287.
Services—
Air Force, 201–203, 206–209.
Army, 198–201, 203–209.
Navy, 195–198, 205–209.
Sessions, Parliamentary, Successive, 926.
Settlement of Industrial Disputes, 758–763, 807.
Settlement of Land, 280–299, 912.
Settlement, Servicemen's, 286–288, 292–295, 831–840, 912.
Settlement, Small-farms, 290–292, 832.
Settlers, Advances to, 290, 293, 513–518.
Sex Proportions, 21, 142.
Sexes of—
Children horn, 56, 57, 59, 65, 95.
Factory Employees, 408–412.
Inmates of Charitable Institutions, 142.
Patients in Mental Hospitals, 144–147.
Patients in Public Hospitals, 111.
Scholars, 157, 159, 160, 162.
School-teachers, 169, 170.
Twin Births, 59.
Share Prices, Index Numbers, 707–710.
Sharebrokers' Licences, Tax on, 494.
Share-milking Agreements, 746.
Shares in Building Societies, 643, 644.
Shares, Labour, 729.
Shearers' Wage-rates, 754.
Shearing-machines on Farms, 327.
Sheep, 298, 348–351, 907, 954, 955, 1004.
Sheep and Lambs slaughtered, 358–360, 427.
Sheep-skins and Pelts exported, 954, 955, 962, 964, 965, 968, 1009.
Sheet-metal Works, 408–419, 426, 433.
Shipbuilding Works, 408–419, 426, 433.
Shipping, 210–223, 593.
Shipping and Seamen Act, 735, 744–746, 919.
Ships (see Vessels).
Shoe-factories, 408–419, 426, 434.
Shops and Offices Act, 731, 735, 739–742.
Shops, Fire losses on, 633.
Short-time in Factories, 412.
Sick Funds, 232, 273, 404, 477, 641, 642, 743.
Sickness, 104–113, 531–540, 641, 642.
Benefits, 531–533, 539, 913.
Insurance, 621, 641, 729.
Signals, Time, 278, 897.
Silica Sand, 388, 401.
Silver, 388–390.
Coins, New Zealand, 607, 608.
Exported, 389, 954, 964, 965.
Silviculture, 366, 367.
Sinking Funds, 235, 237, 238, 246, 460, 464, 467,511,572–574.
Size of Dwellings, 441, 444.
Skins and Hides, Export of, 217, 952–968, 1008, 1009.
Slaughter of Animals for Food, 358.
Slaughterhouses, 307, 358.
Sleepers, Railway, 224, 378.
Sleeping-cars, 225.
Slot Telephones, 271.
Small Farms Act, 289, 746.
Snares Islands, 2, 32, 39, 842.
Soap-factories, 408–419, 426, 430.
Social Hygiene, 117, 118.
Social Security, 135, 519–540, 663–673, 729, 735, 903, 913.
Benefits, 140–142, 148, 478, 521–540, 671–678, 772, 783, 903, 913.
Charge, 475, 478, 482, 491, 520, 688, 712.
Fund, 469–471, 478, 483, 496, 521.
Reciprocity with Australia, 519, 532, 533, 735.
Reciprocity with Great Britain, 519, 533, 735.
Registration Fee, 482, 496, 520.
Taxation, 478, 482–484, 496, 497, 520, 670, 712.
Social Welfare, 129, 130, 134–139, 141–143.
Softwood Trees, 372, 373.
Soil Conservation, 367, 474, 475, 558.
Solander Island, 2, 32, 39, 842.
Soldiers, 198–201, 203–209.
Sources of Income, 684.
South Africa, Reciprocal Trade with, 994, 995.
South African War Pensions, 539, 541, 544, 547, 548.
Southern Alps, 5.
Sown Grasses, 281, 306, 334, 341–343.
Spas, 898.
Special Articles in Previous Issues, 1028, 1029.
Special Rates, 564.
Special Schools, 155, 166–168.
Specialist Services, 537, 540.
Specie, Movement of, 948, 949, 1005.
Specific Customs Duties, 988–990.
Speed Limit, 253.
Spinsters marrying, 68, 70.
Spirits, Consumption of, 827.
Spirits, Duty on, 989, 991, 993.
Sports Councils, 130, 131.
Spread in Price Levels, 314.
Stabilization Accounts, Farm, 310, 668, 673.
Stabilization of—
Prices, 309, 397, 691–693, 733.
Rents, 692, 733, 775.
Wages, 691, 692, 713, 733, 754–757.
Stabilization Subsidies, 309, 310, 397, 477, 663, 667, 668, 671, 675.
Stakes, Tax on, 495.
Stamp Duties, 472, 482, 494.
Estates certified for, 873–876.
Standard Surveys, 302.
Standard Time, 896.
Standard Wage-rates, 751–753.
Standardized Death-rates, 80.
For Cancer, 89.
Standardized Marriage-rates, 67.
State Advances, 447, 448, 513–518, 567, 728, 730, 773.
Corporation, 445, 446, 502, 507, 512, 513–518, 567, 569, 730, 731.
State Afforestation, 365–368, 379, 380.
State Aid to—
Afforestation, 379.
Building, 290, 298, 445–448, 453, 513–518, 567, 773.
Cook Islands, 849.
Crown Tenants, 290.
Discharged Servicemen, 293–295, 514, 515, 517, 746, 764, 831–840.
Farming Industry, 289–295, 297, 298, 307–310, 513–518, 730.
Hospital Boards, 135–137.
Housing, 298, 299, 445–448, 453, 502, 513–518, 567, 773, 774.
Immigrants, 25.
Kauri-gum Industry, 399.
Local Authorities, 135–137, 244, 513, 515–517, 567, 671, 672, 773.
Manufacturing, 515–517, 884–886.
Mining, 397, 401–403.
Niue Island, 852.
Prospecting, 401.
Purchases of Private Land, 293.
Samoa, 859.
Settlers, 289–293, 513–518, 773.
Superannuation Funds, 552–557.
Unemployed, 530, 539, 729, 771, 782, 783.
Water-power Development, 457–460.
Wheat-growing, 336.
Workers, 513–518.
State Coal-mines, 397, 398, 477, 480.
Persons employed in, 398.
State Departments, 924, 925, 931, 932.
State Employment Bureaux, 771, 784.
State Finance, 469–518, 668, 1011, 1012.
State Forests, 365–381, 480, 502.
Accidents, 809–820.
State Highways, 241, 245.
State Housing, 298, 299, 445–448, 453, 454, 474, 475, 502, 518, 773, 774, 831, 839.
State Hydro-electric Department, 461, 932.
State Indebtedness, 499–512, 1011.
State Insurance—
Accident, 636, 637.
Earthquake, 469, 480, 638, 639.
Fire, 637, 638.
Life, 634, 635.
War Damage, 469, 480, 638, 639.
State Lands (sec Crown Lands).
State Marketing, 315–327, 693, 694.
State Maternity Hospitals, 140, 141, 536.
State Placement Service, 772, 784, 791–793.
State Railways, 224–232, 736, 903, 904, 917, 1018.
State Schools, 149–170, 1001.
State Water-power Supply, 457–460.
State-guaranteed Loans, 501, 574.
Stations—
Aeradio, 842.
Air Force, 203.
Fire Brigade, 634.
Hydro-electric, 457–460.
Meteorological, 10–13, 842.
Naval, 195.
Radio, 272, 273, 275–278, 842, 847, 851.
Telephone, 270.
Statistical Information, Latest (see Forefront of Book).
Statistical Publications (see Forefront of Book).
Statistical Summary, 999–1019.
Status of Aliens, 28.
Statutes of 1949 and 1950, 898–922.
Steam-vessels registered, 220, 221.
Sterling Exchange—
Holdings of, 588, 590, 597, 598.
Rates, 610, 611.
Sterling Values of Currency, 610, 611.
Sterling Values of Trade, 940, 947.
Stewart Island, 2, 3, 842.
Oysters, 384.
Population, 36.
Still-births, 58, 65, 74, 85–87.
Registration of, 53, 65, 74.
Stipendiary Magistrates' Courts (see Courts).
Stock and Station Agents—
Advances to, 593.
Deposits with, 606.
Stock, Live (see Live-stock).
Stock, Quotations for, 507.
Stone-quarries, 401, 744.
Stones, Building and Ornamental, 388, 400, 401.
Stranding of Vessels, 223.
Streets and Roads, Length of, 240.
Strength Properties of New Zealand Timbers, 375.
Strikes, 758–763, 801–808, 898.
Students, 153–155, 780.
Students, University, 153, 154, 171–173, 1001.
Submarine Cable, 272.
Subscribers, Telephone, 270.
Subsidies—
Main Highways, 244, 569.
On Coal-production, 397, 671.
On Food and Clothing, 671.
On Rates, 569.
Stabilization, 309, 310, 397, 477, 663, 667, 668, 671, 675.
To Farming Industry, 309, 310, 671.
To Hospital Boards, 135–138.
To Miners, 403.
To Pig-producers, 309, 310.
To Superannuation Funds, 273, 475, 552–557.
To Transport Industry, 671.
Subsidized Employment, 784.
Subsidized Prospecting, 401, 403.
Succession Duty, 491–493.
Suffrage, 17, 560.
Sugar—
Consumption of, 827.
Duty on, 988, 991, 993.
Exported, 954, 955.
Fixed Price for, 691.
Imports of, 978.
Rationing of, 828, 829.
Used by Factories, 429, 430.
Sugar of Milk exported, 954, 955, 964, 965.
Suicide, 87, 94, 97, 102, 178.
Attempted, 193.
Sulphur, 392, 434.
Summary Convictions, 180–183, 190–192, 1002.
Summer Time (Daylight Saving), 896.
Sunshine, 10–13.
Superannuation, 16, 232, 473, 549–557, 921.
Benefits, Social Security, 522, 539, 913.
Superphosphate and Fertilizer Works, 408–419, 426, 434.
Superphosphate, Fixed Prices for, 691.
Superphosphate, Subsidy on Manufacture, 310.
Supplementary loans, 837.
Supplementary Medical, &c., Benefits, 536–540.
Supreme Court (see Courts).
Surpluses, Consolidated Fund, 471, 1012.
Surrenders, Life Assurance, 616–619.
Surtax, 987, 993.
Survey Publications, 304.
Surveys, 299–305.
Aerial, 302, 303.
Geodetic, 301, 302.
Of Coal Resources, 392, 393.
Of Employment, 785–789.
Of Housing, 438, 567, 730, 774.
Of Retail Prices, 694.
Of Ships, 222.
Tidal, 303, 304.
Survey System, 300, 301.
Suspension of Legislation, 732, 764, 833.
Suspensory Loans, 514, 518, 837, 921.
Sustenance Allowances, 772, 783.
Suwarrow (Anchorage) Island, 2, 842, 844, 845.
Swedes, 307, 333–335, 340, 347.
Sweepstakes, 895.
Swordfish, 385.
Sympathetic Strikes, 801–808.
Syphilis, 86, 87, 102, 106, 117, 118, 144.
Syrians in New Zealand, 50.
Systems of Rating, 564, 565.

T

Table Mortgages, 440, 514, 651.
Takutea Island, 2, 842, 843.
Tallow exported, 217, 954, 955, 961, 964, 965, 968, 1006.
Tanneries, 408–419, 426, 431.
Taranaki Ironsands, 390.
Tariff, Customs, 986–998.
Tariffs and Trade Agreement (Geneva), 949, 997, 998.
Tasman Empire Airways, 261, 502, 512.
Tax, Land and Income, 472, 482, 486–491, 679–690, 900, 908, 919.
Taxation, 481–498, 663–677, 1012.
Amusements, 496, 877.
Customs, 472, 482, 485, 670, 986–998.
Direct, 481, 668, 670, 672, 675, 677.
Employment Promotion, 484, 496, 712.
Film-hire, 472, 496.
Indirect, 663, 667, 668, 670, 672, 675, 676.
Local, 498, 564, 565, 567–569, 672, 915.
Main Highways, 242, 243, 246, 247, 249, 482, 485, 486.
Motor-spirits, 242, 243, 486, 569, 899, 990, 992, 993.
National Security, 479, 482, 497, 670, 712.
Orchards, 344.
Racing, 482, 495.
Sales, 472, 482, 497, 498, 670.
Social Security, 478, 482–484, 496, 497, 520, 670, 712.
War, 479, 481, 486, 492, 493, 497, 712, 989–992.
Taxis, 247.
Taxpayers, Income, 679–690.
Tea—
Consumption of, 827.
Duty on, 988.
Imports of, 978.
Rationing of, 828.
Teachers' Examinations, 154.
Teachers' Superannuation Fund, 549, 553, 554.
Teachers' Training Colleges, 155, 168, 169.
Teaching Aids, 170.
Teaching Profession, 168–170.
Technical Correspondence School, 161, 166.
Technical Education, 153, 160–166, 170, 1001.
Telegraph Services, 269, 272.
Telegraph, Time Signals by, 897.
Telephones, 269–271.
Temperature Records, 10–13.
Temporary Dwellings, 439, 444.
Tenancy and Rents, 773–777, 909.
Tenants, Relief of, 650.
Tenure of Crown Lands, 289–295.
Tenure of Dwellings, 440, 444.
Tenure of Occupied Land, 281, 291–293.
Terminating Building Societies, 643–647.
Territorial Air Force, 202.
Territorial Forces, 198–201, 911.
Pensions for, 541.
Textile and Fur Clothing Industry, 408–419, 426.
Theatres, Cinematograph, 876–878.
Theatres, Fire Losses on, 633.
Third-party Risks Insurance, 621–625, 899, 914.
Three Kings Islands, 2, 32, 39, 842.
Threshing-machines, 327, 328, 330, 331.
Tidal Survey, 303, 304.
Tile-making, 408–419, 426, 432.
Timber—
Carried on Railways, 230.
Consumption of, 376, 377.
Export Duty on, 991.
Exports of, 377, 378, 954, 955, 963–965.
Export Prices Index, 704, 705.
Import Duty on, 989, 995, 996.
Imports of, 378, 971, 984.
Output, 376–378, 431, 882.
Plantations, 281, 334, 343, 379–381.
Resources, 366.
Royalties, 379, 569.
Sales, 378.
Trees, 371–377, 380, 381.
Timbers, Strengths of, 375.
Time lost—
Through Industrial Accidents, 816–818.
Through Industrial Disputes, 801–808.
Time Service, 278, 896–898.
Tin, 391.
Tinware-works, 408–419, 426, 433.
Tire-tax, 242, 243, 249, 486, 990.
Title, Certificates of, issued, 286.
Titles, Compulsory Registration of, 283.
Tobacco, 307, 333, 334, 345, 346.
Consumption of, 827.
Duty on, 989, 991, 993.
Excise Duty on, 991, 993.
Factories, 408–419, 426.
Imports of, 971, 972, 978.
Toheroa, 383, 384.
Tokelau (Union) Islands, 1–3, 18, 39, 841, 860–862.
Toll Communications, 269.
Tongareva Island (see Penrhyn).
Ton-miles, Railway, 230, 231.
Tonnage of Cargo, 210–218.
Tonnage of Registered Vessels, 220, 221.
Tonnage of Shipping, 210–221.
Top-dressing, 342, 343.
Topographical Mapping, 302, 303.
Totalizator Investments, 495, 496, 902, 910.
Totalizator Taxation, 495.
Tourist Agents Overseas, 936, 937.
Tourist Attractions, 898.
Tourists, 24.
Tourists' Rail Tickets issued, 230.
Town Districts, 558–578.
Area of, 37, 38.
Bridges in, 240.
Capital and Unimproved Values, 583.
Debt, 571, 575.
Mileage of Streets, 240.
Population, 37, 38.
Town Land, Mortgages on, 515, 516, 652, 653.
Town-planning, 566.
Tractors, Imports of, 983.
Tractors on Farms, 327–330, 360.
Trade, 940–998, 1005–1009.
Agreements, 950, 951, 993–998.
Balance of, 941–944.
Board of, 918, 919, 948.
Cook Islands, 848, 968, 986.
International Conference on, 949.
Nauru Island, 864.
Niue Island, 851, 968, 986.
Of Ports, 210–220.
Representatives, 936–939.
Volume of, 823, 947.
Western Samoa, 858, 859.
Trade Training of Discharged Servicemen, 832–834, 840.
Trades Certification, 766, 767.
Trade-marks, 878.
Trade-unions, 727, 758–763, 796–800, 910.
Trading Accounts, State, 476, 477.
Trading Banks, 588–598, 604, 605, 1015.
Trading Companies' Deposits, 603, 606.
Traffic—
Accidents, 92, 93, 232, 253–255.
Air, 256–266.
Motor, 227, 238, 239, 249–252.
Offences, 181, 183, 190–193.
Railway, 227–231, 1018.
Tramway, 233–239.
Training Farms, 168, 834, 835.
Training of—
Defence Forces, 194–208.
Dental Nurses, 121.
Discharged Servicemen, 734, 832–836, 840.
Nurses, 127, 128.
Police Recruits, 179.
Teachers, 155, 168–170.
Train-miles run, 229, 231, 1018.
Tramway District, 558–578.
Tramways, 233–239, 569.
Accidents, 93.
Cable, 239.
Transfer, Land, 283–286, 908.
Transhipments of Cargo, 216—218.
Transit Housing, 567, 774.
Transit Trade, 965, 966.
Trans-Pacific Air Services, 262, 263, 266.
Transport, 210–266, 593, 898, 899, 914.
Co-ordination, 898.
Districts, Urban, 558–578.
Equipment, Imports of, 972–974.
Licensing, 250–252, 898, 899.
Of School-children, 164, 165.
Persons engaged in, 778, 779.
Trans-Tasman Air Service, 261, 266.
Trapping and Fishing, 779, 781.
Travelling-time, 726.
Trawling, 382.
Treasury Bills, 500, 506.
Treaty of Waitangi, 295.
Tree-planting, 379–381.
Trees, Indigenous, 371–375.
Trend of Population, 21.
Triennial Parliaments, 16.
Triplets born, 57–59.
Trolley-buses, 233.
Tropical Diseases, 845, 850, 855, 862.
Trout, Acclimatization of, 387.
Trust (Liquor) Control, 895, 902, 910, 919.
Trustee, Maori, 298.
Trustee, Public, 865–867.
Trustee Savings-banks, 602–604, 606.
Trust Territory, 2, 3, 18, 841, 852–860, 863, 864.
Tuberculin Tests, 106.
Tuberculosis, 84, 85, 87, 88, 89, 97, 102, 103, 104–107, 113, 115, 117, 119, 125, 130, 139, 140, 146, 529, 845, 908.
Maori Deaths from, 97.
Register, 107.
Tungsten-ore, 388, 389, 390.
Turkeys, 361.
Turnbull, Alexander, Library, 1028.
Turnery Factories, 408–419, 426.
Turnips, 306, 307, 332–335, 340, 347.
Tussock Land, 282, 334, 341, 342.
Tussock Boards, Nassella, 558, 559.
Twins and Triplets born, 57–59.

U

Undergraduates, 171.
Underground Mines, 395, 396.
Under-Secretaries, Parliamentary, 14, 926.
Undesirable Immigrants, Exclusion of, 26.
Undischarged Bankrupts, 657.
Unemployment, 729, 771, 772, 778–795.
Benefits, 530, 531, 533, 539, 772, 783, 913.
Taxation, 496, 712.
Unexercised Overdraft Authorities, 594.
Unformed Roads, 240.
Unimproved Occupied Land, 281, 282.
Unimproved Value of Land, 579–584.
Land-tax assessed on, 488.
Rating on, 565.
Uninhabited Dwellings, 439.
Union Islands (see Tokelau).
Unions, Trade, 727, 758–763, 796–800, 910.
United Kingdom—
Debt domiciled in, 500, 506, 508, 575–577, 1011.
New Zealand Representatives in, 937.
Note Circulation, Index of, 596.
Purchase of Primary Produce, 315–326, 358–360, 704, 950.
Representatives in New Zealand, 939.
Social Security Reciprocity 519, 532, 533, 735.
United Nations, 3, 56, 67, 81, 852, 949, 997.
United States of America—
Exchange Rate with, 612.
New Zealand Representatives in, 937.
Representatives in New Zealand, 939.
Universal Superannuation, 522, 539.
University Education, 153, 162, 171–174, 1001.
University Examinations, 126, 154.
University Professors, 171, 173.
University Scholarships, 172, 173, 918.
Unpaid Fractions, Totalizator, 495.
Unpaid Rates, Penalty on, 568.
Unproductive Land, 280, 282.
Untenanted Houses, 439.
Upolu Island, 3, 852, 855.
Uranium, 392.
Urban Areas—
Fire Losses, 630.
Population, 32–34.
Urban Drainage Districts, 558–578.
Urban Drift, 32.
Urban Farm Lands, Rating on, 582.
Urban Mortgages, 515.
Urban Population, 32–34.
Urban Security, Mortgages on, 516, 650, 652, 653.
Urban Transport Districts, 558–578.
Use or Purpose of Imports, 972–974.
Utilization of Coal, 397.

V

Vacancies, Employment, 790–792.
Valuation—
Of Exports, 940, 943, 951.
Of Imports, 943, 969.
Of Land, 578–584.
Of Personal Consumption, 665, 667.
Of Superannuation Funds, 552–554.
Roll, 579, 580.
Value added in Manufacturing, 406, 407, 416, 417, 420, 422, 424, 1010.
Value of—
Currency, 610–612.
Exports, Effects of Prices on, 966–968.
Factory Production, 406, 407, 416, 420, 422, 426–435, 881–883, 1010.
Farm Production, 310–315, 881–883.
Goods available for Use, 821, 822.
Materials used in Factories, 406, 407, 414, 417, 419, 420, 422, 426–435, 1010.
Production, 821, 881–884.
Veal, 359, 360, 427.
Consumption of, 359, 360, 825.
Export of, 964, 965, 968.
Vegetable Gardens, 332, 343.
Vegetable-preserving Factories, 408–419, 426, 429.
Vegetables, Consumption of, 826, 827.
Vegetables for the Armed Forces, 343.
Vegetables, Price Fixation of, 692.
Vegetables, Retail Prices of, 697–701.
Vegetation, 13.
Vehicles—
Motor (see Motor-vehicles).
Railway, 225.
Tramway, 233.
Venereal Diseases, 86, 87, 102, 106, 113, 117, 118, 144, 533.
Vessels—
Crews of, 24.
Entered and cleared, 210–212.
Nationality of, 212.
Naval, 195, 196.
Radio Communication with, 272.
Registered, 220, 221.
Survey of, 222.
Wrecked, 223.
Veterans' Allowances, 539–541, 544, 546, 547.
Veterinary Services, 309.
Victory Loans, 505.
Vinegar-factories, 429.
Vineyards, 281, 333, 344.
Violent Deaths, 87, 92–94, 97, 102, 178, 253–255, 395, 401.
Virgin Bush, Area of, 282, 366.
Visible Trade-balance, 941–944.
Visitors to New Zealand, 24.
Visual Aids in Teaching, 170.
Vital Statistics, 53–113, 1000.
Cook Islands, 844, 845.
Niue Island, 850.
Western Samoa, 854.
Viticulture, 281, 333, 344.
Vocational Guidance, 164, 764, 784.
Volcanoes, 4, 5.
Volume of—
Exports, 823, 947, 967.
Factory Production, 423, 424, 883.
Farm Production, 312, 313, 883.
Goods available for Use, 822, 823.
Imports, 823, 947.
Money in Circulation, 604, 605.
Production, 312, 313, 423, 424, 821, 883, 884.
Trade, 822, 823, 947.
Voluntary Contributions to Hospitals, 136.
Voluntary Mental Patients, 147.
Voluntary Welfare Organizations, 129, 130.
Voting—
At General Elections, 886–891.
At Licensing Polls, 893, 894.
Qualifications, 17, 560, 561.
Vouchers, Audit of, 470.
Vulcanizing and Rubber Goods Industry, 408–419, 426.

W

Wage, Basic, 750.
Wage, Minimum, 739, 741, 747, 748, 750, 751.
Wage-cost Allowance, 324.
Wage-earners, 408–412, 578, 780, 800.
Wage-rates, 411, 412, 711–722, 725, 739, 741, 742, 745, 750–754.
Wages—
And Salary Payments, 406, 407, 410, 411, 662–678, 1010.
And Wage-rate Legislation, 750–754.
Increases in, 713, 739, 750–754, 898, 907.
Legislative Changes in, 713, 750–754, 898.
Lost through Industrial Accidents, 818.
Lost through Industrial Disputes, 802–807.
Of Cinematograph Theatre Employees, 877, 878.
Of Electric-supply Employees, 462, 463.
Of Factory Employees, 406, 407, 410–412, 422,426–435, 1010.
Protection of, 731, 757, 758.
Reduction of, 730, 751.
Restoration of Cuts in, 751.
Shearers', 754.
Stabilization of, 691, 692, 713, 733, 754–757.
Tax on, 478, 496, 520, 712.
Waitangi, Treaty of, 295.
Waitangi Treaty Site, Gift of, 380.
Wakari Private Mental Hospital, 144, 147.
Wallboard and Building-sheet Industry, 408–419, 426.
War, 194–209.
Bursaries for Soldiers' Dependants, 163.
Apprentices, 764.
Consumption of Commodities, 828–830.
Financial Transactions, 612.
Labour Legislation, 732–734, 746, 754–757, 784.
Mortgages, 650.
Prices, 309, 310, 397, 691–693.
Casualties, 204–206, 208, 209.
Apprentices, 764.
Consumption of Commodities, 828–830.
Financial Transactions, 612.
Labour Legislation, 732–734, 746, 754–757, 784.
Mortgages, 650.
Prices, 309, 310, 397, 691–693.
Damage Insurance, 469, 480, 638, 639.
Apprentices, 764.
Consumption of Commodities, 828–830.
Financial Transactions, 612.
Labour Legislation, 732–734, 746, 754–757, 784.
Mortgages, 650.
Prices, 309, 310, 397, 691–693.
Deaths Register, 75.
Apprentices, 764.
Consumption of Commodities, 828–830.
Financial Transactions, 612.
Labour Legislation, 732–734, 746, 754–757, 784.
Mortgages, 650.
Prices, 309, 310, 397, 691–693.
Debt, 502, 505.
Apprentices, 764.
Consumption of Commodities, 828–830.
Financial Transactions, 612.
Labour Legislation, 732–734, 746, 754–757, 784.
Mortgages, 650.
Prices, 309, 310, 397, 691–693.
Expenditure, 198, 200, 203, 473, 479, 502, 505, 671.
Apprentices, 764.
Consumption of Commodities, 828–830.
Financial Transactions, 612.
Labour Legislation, 732–734, 746, 754–757, 784.
Mortgages, 650.
Prices, 309, 310, 397, 691–693.
Expenses Account, 478, 479, 673.
Apprentices, 764.
Consumption of Commodities, 828–830.
Financial Transactions, 612.
Labour Legislation, 732–734, 746, 754–757, 784.
Mortgages, 650.
Prices, 309, 310, 397, 691–693.
Loans, 502, 505.
Apprentices, 764.
Consumption of Commodities, 828–830.
Financial Transactions, 612.
Labour Legislation, 732–734, 746, 754–757, 784.
Mortgages, 650.
Prices, 309, 310, 397, 691–693.
Measures affecting—
Apprentices, 764.
Consumption of Commodities, 828–830.
Financial Transactions, 612.
Labour Legislation, 732–734, 746, 754–757, 784.
Mortgages, 650.
Prices, 309, 310, 397, 691–693.
Pensions, 519, 520, 539–549, 732, 735, 902, 913.
Pensions Appeal Board, 548, 549.
Publications pertaining to, 1031.
Purchases of Produce, 318, 319, 321, 322, 950.
Service, 51, 52.
Taxation, 479, 481–486, 492, 493, 497, 712, 989–992.
Veterans' Allowances, 539–541, 544, 546, 547.
Warships, 195, 196, 205.
Wartime Price Index, 695, 733.
Wartime Regulations, &c., 732–734.
Wartime Restrictions on Consumption, 828–830.
Waterfront Control, 733, 749, 917.
Water-power, 413, 457—168.
Water-supply District, 558–578.
Weather, 10–13.
Weights and Measures, 299, 333.
Welfare of Workers, 739, 741, 743, 745, 748.
Welfare, Maternal, 123.
Welfare Organizations, 129, 130.
Wellington—
Broadcasting Stations, 276–278.
Building Values, 451.
Dwellings, 453.
Fires, 630.
Population, 33, 34, 36.
Rainfall, 10–13.
Retail Prices, 700.
Sales-tax Receipts, 498.
Shipping, 211, 214–220.
Sunshine, 10–13.
Temperature, 10–13.
Tramways, 233, 235–239.
Western Samoa, 1–3, 18, 26, 549, 841, 852–860, 905.
Bibliography, 1032.
Population of, 18, 854.
Radio Communication, 272.
Trade, 858, 859.
Whale Oil, 383, 385, 853, 954.
Whales and Whaling, 385, 863.
Wheat, 306, 307, 330–337, 1003.
Fixed Prices for, 691.
Imports of, 978.
Milled, 428.
Research Institute, 336.
Restriction on Imports of, 336.
Varieties of, 337.
Whey Butter, 355, 428.
Whipping abolished, 184.
White Island Sulphur, 392.
Whitebait, 383–386.
Wholesale Licences, 891, 892.
Wholesale Prices, 701–703, 706, 710.
Whooping-cough, 87, 88, 97, 102, 113, 120.
Widowed Persons, Numbers of, 44–46.
Widowers, Remarriages of, 68, 69.
Widows—
Benefits, 525, 526, 533, 539, 913.
Remarriages of, 68, 69.
War Pensions, 540–549.
Wild Pigs, Destruction of, 309.
Wills administered by Public Trust Office, 865–867.
Wine, Duty on, 989, 993.
Wine, Consumption of, 827.
Wine Licences, 892.
Wireless (see Radio).
Withdrawals from Savings-banks, 600–603, 1016.
Wives, Aggregation of Income, 683, 684.
Wives, Allowances in respect of, 522–554.
Wives' Petitions in Divorce, 72, 73.
Women—
Army Corps, 198.
Auxiliary Air Force, 201, 202.
Deaths of, in Childbirth, 87, 92, 102, 113.
Eligible for Parliament, 15, 16.
Employed in Factories, 408–412.
Nationality Laws, re, 28.
Naval Service, 197.
Of Child-bearing Ages, 55.
Offences by, 180, 182, 190, 191.
Police, 180.
Suffrage for, 17, 728.
Wage-rotes of, 410–412, 717–725, 751.
War Service Auxiliary, 208.
Working-conditions of, 727, 738, 740, 742.
Working-hours of, 723–726.
Woodware Factories, 408–419, 426.
Wool, 311, 319–321, 351, 352, 427, 904, 922, 1006.
Disposal Commission, 320.
Export Price Index, 704, 705.
Exported, 217, 351, 954, 955, 959, 960, 964, 965, 968, 1006.
Financing Purchase of, 949.
Levy, 352, 991, 992.
Marketing of, 315–321, 950.
Prices for, 319–321.
Purchase for War Purposes, 319, 320, 950.
Used at Local Mills, 351, 434.
Woollen-mills, 408–419, 426, 434, 593.
Wool-scouring Works, 408–419, 426, 430.
Workers, Advances to, 513–518.
Workers' Compensation, 621–624, 636, 637, 639, 729, 735, 767–771, 809–812, 899, 900, 903, 918.
Insurance, 621–624, 636, 637, 735.
Workers' Dwellings, 445–448, 513–518, 567, 774.
Workers' Educational Association, 175.
Workers' Unions, 727, 758–763, 796–800, 910.
Workers' Weekly Railway Tickets, 230.
Working Conditions, 736–749.
Working Conditions in the Government Service, 748, 749.
Working Proprietors, 785–787.
Working Railways Account, 226–229, 477, 480, 1018.
Working-days lost through Industrial Disputes, 801–808.
Working-hours, 424, 723–726, 738–740, 742, 745, 747.
Working-men's Clubs, 640.
World Comparisons (see Comparisons).
Wrecks, 223, 746.

X

X-ray, 124, 125.
Diagnostic Services, 536, 537, 540.
Examinations, 106, 536.

Y

Yields of Butterfat, 356.
Yields of Crops, 330, 331, 334–347, 1003.
Yields on Market Prices of Shares, 709, 710.
Youth Centres, 164, 784.
Youths—
Wage-rates of, 719, 720.
Working-conditions of, 738, 740, 742.

Z

Zoology, 13.

Chapter 50.