Title: War Economy

Author: Baker, J. V. T.

Publication details: Historical Publications Branch, 1965, Wellington

Part of: The Official History of New Zealand in the Second World War 1939–1945

This text is the subject of: ‘Something of Them Is Here Recorded’: Official History in New Zealand

Conditions of use

The Rehabilitation Board

Safeguarding the interests of servicemen returning to civilian life was a National Rehabilitation Council and a Rehabilitation Board responsibility.

The Rehabilitation Act had been passed in October 1941 to provide for the re-establishment in civil life of men and women who served in the forces during World War II. For this purpose, quite wide powers were given, including even power to provide finance for the reconstruction of wartime industries on a peacetime basis or to assist in the establishment of new industries. Under this Act, the Council and the Board were set up early in 1942.

The principal function of the Council was to make recommendations to the Minister in Charge of Rehabilitation in relation to the re-establishment of discharged servicemen in civil life. In the main it was an advisory body.

The Board, under the authority of the Minister, was charged with making all necessary provisions for re-establishment. To this end the Board was empowered to use and co-ordinate the services of various Government departments and other organisations. Specifically, the Board had power to acquire property for disposal to discharged servicemen, to give them financial aid, to provide vocational training, to arrange employment for them and to recommend to the Government any modifications necessary to ensure their entry into any employment or occupation.

Initially, instead of setting up a special department, the Board appointed various departments and organisations as its agents in particular defined fields, but with a Rehabilitation Division of the National Employment Service playing a co-ordinating role.

In November 1943 the Rehabilitation Department was established with Mr F. Baker¹ as its Permanent Head. In many cases this special department gave the Board a more direct interest in the re-establishment of individual ex-servicemen; but much of the work still required close co-operation with other departments.

The aims of the Rehabilitation Board were: ‘To see the ex-serviceman suitably placed in employment or provided with the means of earning a livelihood and to see him suitably housed.’²

From £6 million in 1944–45, rehabilitation expenditure, including loans, leapt up to nearly £16 million in 1945–46 and then, for the years 1946–47 to 1952–53, averaged over £19 million a year. Thereafter it decreased fairly steadily, to be under £7 million in 1962–63.¹

Chart 79 shows annual expenditure on rehabilitation.

Chart 79
ANNUAL EXPENDITURE ON REHABILITATION
(INCLUDES LOAN AUTHORISATIONS)

From April 1954 the Rehabilitation Department ceased to function as a separate Department, and became a division of the Department of Internal Affairs. Thereafter, it took the form of a board secretariat, with regional representation at Auckland, Wellington, and Christchurch.