The Department of Supply and Development [I] was created on 26 April 1939 (1), but did not become operational until 17 June 1939 when the Supply and Development Act 1939 (Act No 6 of 1939) received Royal Assent (2). 

The functions of the Department at first included the provision or supply of munitions; the manufacture or assembly of aircraft, or parts by the Commonwealth or by authority of the Commonwealth; arrangements for the establishment or extension of industries for purposes of defence; the acquisition, maintenance and disposal of stocks of goods in connection with defence; the arrangement or co-ordination of surveys of Australian industrial capacity, planning to ensure effective operation in time of war and decentralise secondary industries, particularly those relating to defence investigation and development of Australian sources of supply of goods in time of war, particularly additional oil resources, production of power, alcohol from sugar or other crops and the production of oil from coal or shale (3).
 
The Munitions Supply Board (CA 91), the Factory Board (CA 140) (including the Commonwealth munitions and clothing factories), the Contract Board (CA 92) and the Defence Supply Planning Committee (CA 334) were transferred from CA 19, Department of Defence [II]. An Aircraft Construction Division A Secretariat (and Records Section) and a Finance Branch were established within the new Department. In 1939, the petroleum supply and distribution activities of the Defence Supply Planning Committee were transferred to a special section in the Department of Supply and Development. In August 1939 a
Commonwealth Oil Board (CA 191) was formed to collect information regarding the civil and defence requirements of liquid fuels and supplies of liquid fuel.
 
At the end of 1939 and early 1940 special sections to handle
essential civil supplies and jute and flax were set up. Later Jute Advisory and Flax Production Committees (CA 437) and (CA 338) were established. A Timber Control Section was established later.
 
The collation and examination of information in regard to petroleum products was carried out by an Oils Fuel Sub-committee which functioned under the Principal Supply Officers Committee, Department of Defence. In 1940 these duties were transferred to a Petroleum Section in the Department of Supply and Development.
 
On 21 March 1940 Statutory Rule No 55 of 1940, converted the Aircraft Construction Division to an Aircraft Production Commission (CA 249), which although continuing to function within the Department, was directly responsible to the Minister.
 
In June 1940, a Central Liquid Fuel Control Board (CA 157) was established to implement petrol rationing proposals working through Liquid Fuel Boards in each State.
 
On 15 June 1940 Statutory Rule 1940, No 111 (National Security (Munitions) Regulations) transferred the munitions and aircraft production activities as well as all Commonwealth factories apart from the clothing factory, to the New Department of Munitions (CA 39). Although a Director-General of Munitions was appointed under the Rule, the Minister and Secretary of Supply and Development were appointed in the respective positions for the Department of Munitions as both departments continued to function substantially as one organisation which lasted till July 1941 when a separate Minister and Secretary were appointed for the Department of Munitions. The Department of Supply and Development then became responsible for non-munitions items, including and clothing factory; foodstuffs flax, jute and general stores, other than chemicals, materials, petroleum and metals.
 
In August 1941 Statutory Rule No  189 of 1941, (National Security (Coal Control) Regulations) established a Commonwealth Coal Commission (CA 258) directly responsible to the Minister. At the same time, 26 August 1941, a Commonwealth Tinplate Board (CA 175) was created by Statutory Rule 1941, No 210 (National Security (Tinplate Control) Regulations) and a Tinplate Section was set up within the Department to administer these regulations.
 
The Geological Branch of the  Department of the Interior [II] (CA 31) was transferred to this department in September 1941 and its title was changed to "Mineral Resources Survey" because of the widened scope.  

In February 1942, a Controller of Defence Foodstuffs was appointed in the department and the procurement of food for the services was separated from the other work of the Contract Board. A Food Purchasing Board (CA 151) was established.
 
In March 1942, a Controller of Minerals Production was appointed under Statutory Rules (National Security (Minerals) Regulations) and as a result a Minerals Production Directorate was set up within the department to assist in carrying out the functions and to take over from the Department of Interior geological and geophysical work (4).
 
In April 1942 an Allied Supply Council (CA 496) was established with its Secretariat in the Department. The Council was an inter-allied body of Australian and US representatives primarily concerned with co-ordinating and planning in relation to the supply problems in the South-West Pacific Area.
 
On establishment the Central Registry of the department catered for the following sections: (5) Secretariat; Factories Branch; Contracts Branch; Aircraft Construction Branch; Supply Planning Committee; Industrial Organisation Section; Economic Adviser; Secondary Industries Section; Primary Industries Section. 

When the Department of Munitions was first established the Central Registry of this department was re-organised in July 1940 and catered for the following; Central Munitions Administration Section; General; Secretariat; Staff Industrial and Finance Section; Material Supply Section; Ordnance Production (Explosives) Sub-Section; Gun Ammunition Production and Aircraft Sub-Section, the latter two being part of Commercial Production Section. 

By August 1940, matters relating to ordnance and ammunition production were transferred to the Factory Board Section (to be called the Munitions Section) and a Machine Tools Section had been established and their records separated from the rest. By September 1940, a Central Munitions Secretariat was established within the department and a Purchases and Stores Section established within it. By October, Branch registries had been formed for Machine Tools Section in Henty House and for Explosives Supply Section then Equitable Building. By November 1940, a Munitions Registry was functioning independently of the Central Registry but was still located at Western House. 

By April 1941, a special General and Supply and Development Section Registry dealt with all supply and development work, except civil supply and finance matters. The Munitions Section registry dealt with matters relating to Ammunition Section; Ordnance, Machinery and Plant Sub-Section; Industrial Staff and Finance Section. Other registries existed for Materials Supply Section; Machine Tools Section; Explosives Supply and Fibre Section.
 
In July 1941, the functions of the Department of Supply and Development were separated from the Department of Munitions and the Department transferred to Century House. The registry then started a
new correspondence registration system (alph-numeric), top-numbering the existing files relating to the current functions.
 
In October 1942, the shipping and associated functions of the Departments of Labour and National Service (CA 40) (Stevedoring Industry Commission (CA 272)), Commerce and Agriculture (CA 48) (Shipping Control Board (CA 167), (Marine Branch, Salvage Board (CA 147) and Maritime Industry Commission (CA 267) and Trade and Customs (CA 10) (Cargo Control Committee (CA 313)) were transferred to the Department of Supply and Development, the title of which was then altered to that of Department of Supply and Shipping (CA 47) (6) on 17 October 1942 (7).

The Minister of the Department was entrusted with the administration of the following legislation:
 
 Supply and Development Act 1939
 Precious Metals Prospecting Act, 1926
 Precious Security Act 1939 (related Regulations only)
 Petroleum Prospecting Act 1926
 Petroleum Oil Search Act 1936
 Geophysical Survey Act 1928
 National Oil Proprietary Ltd Agreement Act 1937
 Northern Australia Survey Act 1934
 Oil Agreement Act 1920
 
The following people were appointed to the position of Minister: 

17 Jun 1939 - 20 Jan 1940  : Hon Richard Gardener Casey (CP 24) 
26 Jan 1940 - 28 Oct 1940  : Hon Sir Frederick Stewart (CP 205)
28 Oct 1940 - 26 Jun 1941  : Sen the Hon Phillip Albert Martin
                             McBride 
26 Jun 1941 -  7 Oct 1941  : Sen the  Hon George Mcleay (CP 206)
 7 Oct 1941 - 17 Oct 1942  : Hon John Albert Beasley (CP 84)  

Secretaries of the Department of Supply and Development were:  

25 May 1939 - 30 Nov 1939  : D McVey
 1 Dec 1939 - 30 Jun 1941  : J B Brigden
 1 Jul 1941 - 17 Oct 1942  : A V Smith

 
References 
 
1. Commonwealth Gazette, No 25, 26 April 1939, p 671
2. Commonwealth Acts Supply and Development Act 1939, Act No 6 of
   1939, pp 34-41
3. Hasluck, P M C, The Government and the People, 1939-41 Canberra, 
   Australian War Memorial, 1952, p 455
4. Committee of Review - Civil Staffing of War Time Activities.
   Report on the Department of Supply and Shipping, 7 December 1945,
   pp 2-3 
5. Supply, Central Administration, Personnel and establishment 
   branch:  correspondence relating to departmental organisation
   ("Old Org" series) Australian Archives: M P 661/1 file 65 p 1
6. Committee of Review - Civil Staffing of War Time Activities,
   Report on the Department of Supply and Shipping, 7 December 1945,
   p 3
7. Commonwealth Gazette, No  278, 17 October 1942, p 2490
Historical agency address
  1939-  1941: Western House, 83 William Street, Melbourne
  1941-  1942: Century Building, 125 Swanston Street,
               Melbourne
Legislation administered
Creation: Executive Council Meeting No.18 (Prime Minister's Department Minute No.54,) 26 April 1939
Abolition: Executive Council Meeting No.142 (Prime Minister's Department Minute No.35), 17 October 1942.