H.—ll

Department such as this, with so many conflicting interests to watch, men of tact are required, and we have indeed been fortunate in securing such. Employment everywhere has been exceedingly plentiful, and in consequence very few real unemployed have visited us ; in fact, in many lines of labour there has been a shortage instead of a surplus, as might have been expected owing to the large influx of Australians. These latter, apart from a few undesirables, taking them altogether, have not proved a bad lot of men. With very few exceptions, the various Acts which are administered by the Department have worked smoothly and well, and both employers and employees all over the colony are, as a rule, willing and anxious to abide by their provisions. I have to thank all the members of the staff for their good work, also for their general willingness to put on an extra effort when required, or work a few hours longer than usual. Yours, &c, J. Mackay, Chief Clerk and Deputy Chief Inspector. E. Tregear, Esq., Secretary for Labour.

VII