PUBLIC WORKS STATEMENT (BY THE HON. H. T. ARMSTRONG, MINISTER OF PUBLIC WORKS).

Appendix to the Journals of the House of Representatives, 1942 Session I, D-01

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1942. NEW ZEALAND.

PUBLIC WORKS STATEMENT (BY THE HON. H. T. ARMSTRONG, MINISTER OF PUBLIC WORKS).

Mb. Speaker,— In accordance with the provisions of section 8 of the Public Works Act, 1928, I submit my report on works carried out during the year ended 31st March, 1942, together with a statement of expenditure certified by the Controller and Auditor-General. Owing to war conditions, public-works activities have been further curtailed, and for this reason, combined with the circumstances which now obtain, this report covers only a brief survey of the works undertaken. In my last Statement I mentioned that my Department had been engaged to a large extent upon works directly associated with national defence. During the past year normal public works have been still further reduced, and the departmental organization has been devoted, on a much larger scale, to urgent and necessary defence construction. Just before the end of the financial year the Government set up a Defence Construction Council and appointed a Commissioner of Defence Construction. The Commissioner was given wide powers in regard to the control of men and materials, and was given the responsibility of fixing priorities for the huge programme of defence construction. He set up an organization, which made use of existing Departments as far as possible. My Department, as the principal constructing Department, has been used by the Commissioner to the fullest extent, and by its use works of unprecedented magnitude have been carried out in record time, I had hoped that upon the passing of the Soil Conservation and Rivers Control Act it would have been possible to establish the governing Council almost immediately for the purpose of making preliminary arrangements to inaugurate a practicable policy with the least delay. However, it was not found possible until recently to constitute the Council, but the necessary appointments have been made, and the Council will commence to function in the near future. It is expected that a considerable amount of investigatory work will be involved before the Council will be in a position to set up Catchment Boards to control any particular catchment areas. Owing to the pressure of other more important work, the Department has not been able to undertake any surveys in connection with rehabilitation proposals, but as soon as staff can be made available a commencement will be made. Fortunately there have been no disastrous floods of the first magnitude, but a number of floods occurred in various parts of the country, and considerable damage was done in some areas. I desire to record the Government's appreciation of the services of Mr. J. T. Mair, who retired from the position of Government Architect, in which capacity be rendered notable professional service for nineteen years. I wish also to acknowledge again the splendid work of the officers and workmen of the Department, who have given excellent service during a period of extraordinary activity and under difficult circumstances. At the end of the year, 852 officers of the Department were serving with the forces, and it is my deep regret that 19 have made the supreme sacrifice and 30 have suffered casualties or are prisoners or war. FINANCE. The payments and receipts in connection with the Public Works Fund and other associated votes and accounts for the year 1941—42 are shown in the tabulation following. The gross expenditure amounted to £18,236,324, of which £3,072,264 was expended by other Government Departments ; the recoveries in reduction of expenditure amounted to £7,636,758, of which £1,424,456 was recovered by other Departments ; the net expenditure totalled £10,599,566, of which £1,674,418 was expended by other Departments.

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In addition, the Department collected £2,152,581 for the supply of electric energy and irrigation and as miscellaneous revenue from other sources.

Note.-Adjustment as between Small Farms and Public Buildings, £29,275, year 1940-41 made in above.

Expenditure, 1941-42. Class of Work. Gross. Recoveries. Net. Expenditure, Public Works Fund. Railways — £ £ £ New construction .. ... .. .. .. 617,724 88,038 529,686 Improvements and additions to open lines .. .. 193,291 29,225 164,066 Roads .. .. .. .. .. .. 294,045 51,100 242,945 Public buildings .. .. .. .. .. 1,254,164 26,882 1,227,282 Lighthouses and harbour-works .. .. .. .. ,20,827 1,990 18,837 Tourist and health resorts .. .. .. .. 15,182 2,975 12,207 Telegraph extension .. .. .. .. .. 434,320 261,173 173,147 Departmental .. ... .. .. ... 547,332 444,033 103,299 Irrigation, water-supply, and drainage .. .. .. 538,176 51,690 486,486 Lands-improvement .. .. .. .. .. 163,979 63,730 100,249 Small farms development .. .. .. .. 436,979 260,064 176,915 Native-land'settlement .. .. .. .. .. 862,260 754,188 108,072 Linen-flax development .. .. .. .. .. 679,728 107,606 572,122 Cost and discount, raising loans, &c. .. .. .. 99,056 .. 99,056 Totals, General Purposes Account .. .. 6,157,063 2,142,694- 4,014,369 Electric Supply Account (previously Aid to Water-power Works Account) — Construction .. .. .. .. .. .. 1,655,419 75,119 1,580,300 Working-expenses .. .. .. .. .. 649,662 8,159 641,503 Totals, Public Works*Fund .. .. .. 8,462,144 2,225,972 6,236,172 Expenditure, other Votes and Accounts. Main Highways Account— I Annual appropriation— Construction, reconstruction, and improvements .. 567,763 62,424 505,339 Maintenance, repairs, and renewals .. .. .. 1,186,382 118,354 1,068,028 Administration, plant, and miscellaneous expenditure .. 75,099 74,862 -237 Interest, fees, and loan redemptions .. .. .. 351,909 .. 351,909 Permanent appropriations (rate subsidies, interest on transfer from Public Works Fund, &c.) .. .. .. 312,722 .. 312,722 Consolidated Fund— Maintenance, public buildings, roads, &c. .. .. 379,392 45,461 333,931 Plant, material, and miscellaneous services .. .. 5,286,215 5,109,685 176,530 Other accounts (expenditure by Public Works Department) : Amounts not included above .. .. .. .. 1,614,698 .. 1,614,698 Totals, other votes and accounts .. .. .. 9,774,180 5,410,786 4,363,394 Grand total of expenditure, Public Works Fund and other votes and accounts for the year ended 31st March, 1942.. .. 18,236,324 7,636,758 10,599,566

Class of Work. ''* 1941-42. Receipts,* Public Works Department. Ordinary Revenue Account— £ Irrigation (receipts for year) .. .. .. .. .. .. 27,333 Miscellaneous receipts for year .. .. .. .. .. .. 37,131 Electric Supply Account (sales of energy, miscellaneous receipts, &c.) : Receipts for year .. .. .. .. .. .. .. .. 2,058,176 Main Highways Account (repayment of advances, &c., and interest) : Receipts for year .. .. .. .. .. ... .. .. 29,941 Total receipts .. .. .. 2,152,581 * JSxcludes motor-spirits tax, registration fees, &c., collected by other Departments,

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Summary.

Of the net expenditure of £10,599,566 previously mentioned, £5,750,175 may be regarded as having been expended from loan-moneys (£3,912,806 General Purposes Account, £1,580,300 Electric Supply Account, and £257,069 Main Highways Account), the balance —i.e., £4,849,391 —being expended from loan recoveries, war expenses, revenue, and taxation. The ratio which the various classes bear to the whole is shown below. It should be noted that the figures are gross —that is, before deducting recoveries, which, if deducted, would detract from the true portrayal of activities : — Roads, including construction and maintenance of main £ Per Cent. highways .. .. •• •• •• 2,787,920 = 13-67 Hydro-electric (construction and working-expenses) .. 2,305,081 = 11-31 Railway-construction, improvements and additions .. 811,015 =, 3-98 Public buildings, including schools .. ■■ •• '1,254,164 = 6-15 Small farms development .. .. •• 436,979 = 2-14 Lands-improvement .. .. .. •• 163,979 = 0-80 Irrigation .. .. .. •• •• ■■ 538,176 = 2-64 Public buildings, roads, &c. (maintenance) .. .. 379,392 = 1-86 Telegraph extension .. .. .. •• •• 434,320 = 2-13 Native-land settlement .. .. •• 862,260 = 4-23 Plant, material, and services for other Departments .. 5,286, 215 == 25-93 Linen-flax development .. .. .. •• 679,728 = 3-33 Miscellaneous .. .. •• 2,297,095 = 11-27 Revenue receipts .. .. •• •• ■■ 2,152,581 == 10-56 £20,388,905 ■=. 100-00 In regard to the ways and means of the General Purposes Account of the Public Works Fund the position is as under : — £ Balance available Ist April, 1941 .. .. .. .. •• 1,521,270 Add funds received during the year — £ Finance Act, 1939, section 2 (Public Works) 4,548,168 Finance Act 1940, section 3 .. .. 1,390,127 5,938,295 Less — £. Loans redeemed, 1941-42 .. 24,300 —- 5,913,995 Miscellaneous .. .. • ■ ■ ■ 164,014 —— 6,078,009 7,599,279 Deduct expenditure during 1941-42 under annual appropriations .. .. 3,915,313 Balance available 31st March, 1942 .. .. .. ~ £3,683,966 The estimated net expenditure for the Public Works Department under the Public Works Account for the current financial year is £1,110,000, and arrangements are being made with the Minister of Finance to provide the necessary funds. This is the amount shown on the Public Works departmental estimates, which also show an estimated net expenditure of £2,000,000 from the Electric Supply Account and £1,692,200 from the Main Highways Account, a total for all these accounts of £4,802,200.

Summary of Votes under Control of Minister of Public Works and Proposed Ways and Means of Raising the Necessary Funds —Year ending 31st March, 1943.

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j Public Works Other Total Department. Departments. I , ■ £ £ £ Gross expenditure .. .. 15,164,060 3,072,264 18,236,324 Recoveries and receipts .. .. 8,364,883 1,424,456 9,789.339

■ ' I T Consolidated Special r r „ f „i Vote. Loans. Fund . Revenue. Total I £ £ £ £ Departmental .. .. •• •• 150,000 .. .. 150,000 Railway-construction .. .. 150,000 .. .. 150,000 Public Buildings .. • • 350,000 .. .. 350,000 Lighthouses and Harbour-works .. .. 20,000 .. .. 20,000 Roads 170,000 .. .. 170,000 Land-improvement .. .. •• 70,000 .. .. 70,000 Irrigation .. •< - •• 200,000 .. .. 200,000 Electric Supply .. •• •• 1,100,000 .. 900,000 2,000,000 Main Highways .. ..." .. •• 300,000 .. 1,392,200 1,692,200 Maintenance of Public Works and Services .. .. 500,000 .. 500,000 Totals .. •• •• 2,510,000 500,000 2,292,200 5,302,200

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For the current financial year 1942-43 a sum of £500,000 will be provided from the Consolidated Fund for expenditure on maintenance of public works and services. The expenditure on main highways (including permanent appropriations estimated at £307,800) is estimated to reach £2,000,000, of which a sum totalling £1,700,000 is expected to be raised by way of special revenue. It is anticipated that the revenue from the supply of electrical energy will reach a sum of £2,300,000, which will be utilized for the payment of arrears of sinking-fund instalments, interest, operating-expenses, and income-tax, &c. HYDRO-ELECTRIC DEVELOPMENT. The electric-supply systems in both Islands operated smoothly throughout the year and were remarkably free from interruption. The gross financial result was maintained at approximately the usual level. The establishment of further war industries and the increased demand from other consumers have severely taxed the capacity of the generating-stations, making it necessary to insist on new installations being confined to the more essential purposes. By means of appeals an endeavour was made to eliminate all extravagant and wasteful uses of electricity. The response from consumers was such that a compulsory rationing of supply to individual consumers, was avoided. The development of further schemes has naturally been retarded by loss of man-power to the fighting services. Some progress has, however, been made, and sufficient labour has been available to install the plant coming to hand from overseas. Owing to departmental circumstances arising from the war, it has not been found possible to include an audited statement of the Electric Supply Account with this report, but the matter is now in hand and the statement duly audited will be included in paper.J3.-l [Pt. IV], in terms of section 57 of the Finance Act, 1932. A statement of the accounts and balance-sheet which are subject to audit are attached. MAIN HIGHWAYS. Outside of urgent and essential bridge renewals and the improvement of sections of highways to meet Army requirements, no new highway works have been started during the year, and the principal activities of the Main Highways Board have been to see that its assets are preserved by adequate attention being given to maintenance requirements. Although the volume of car traffic on the roads has decreased considerably, traffic by the heavier type of vehicle has shown a marked increase in certain localities, and this has necessitated greater expenditure in those areas. Materials, wages, and the cost of operating plant have all shown an increase during the year, but despite these factors the average cost of maintenance per mile has shown a substantial reduction. Out of the funds provided for the current year, after allowance has been made to meet fixed charges and the cost of commitments already entered into, a very reduced amount will be available for the Main Highways Board to attend to maintenance requirements. RAILWAY-CONSTRUCTION. It was found necessary throughout the year to transfer men to special works, and consequently progress on railway-construction was retarded. The driving of the last spike on the Westport-Inangahua Railway was marked by an official ceremony in December, 1941, and it is expected that traffic will shortly be possible on the GisborneWaikokopu section of the Gisborne Napier Railway,. Although the Dargaville Station buildings are not completed, a good.s and passenger service is being operated by the Railways Department over the Dargaville branch line. Most of the construction work on the South Island Main Trunk Railway has been suspended temporarily, but during the year a number of bridges were completed. RAILWAYS : IMPROVEMENTS AND ADDITIONS TO OPEN LINES. The expenditure out of the Public Works Fund for the year ended 31st March, 1942, was £147,641, as against £1,087,337 for the previous year. The principal activities were the duplication of line between Papakura and Horouu, grade and curve easements on the Henderson—Swanson-Wartakere section, and the Turakina-Okoia deviation. In view of the present condition of emergency, these and other works have been suspended with a view to releasing workers for essential industries. ROAD-CONSTRUCTION. Road-works carried out during the year were limited to sections which were already in : hand at the outbreak of hostilities, and bridge or minor access requirements of primary urgency. Where practicable, construction was suspended in order to facilitate the prosecution of more important works. IRRIGATION AND WATER-SUPPLY. The practice of irrigation in Central Otago was well maintained and a total of 52,620 acres were irrigated, from which an annual revenue of £27,600 was derived, being £870 in excess of last season's revenue. In Canterbury, 3,400 acres were irrigated, bringing in a revenue of £605, or slightly less than last season, but, as mentioned in my previous Statement, the war period is not conducive to the change of methods in farming. The construction work on the Mayfield-Hinds Scheme and the Ashburton-Lyndhurst Scheme has practically ceased, due to shortage of labour and plant, which has been diverted to the war effort. The Rangitata diversion race has, however, proceeded favourably, and it is hoped to continue this work to make water available to the Highbank Hydro-electric Scheme for next winter. The year's work was mainly concentrated on the completion of the large reinforced-concrete structures for controlling the water in this forty-two-mile race.

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The Downlands Water-supply Scheme is now serving the Pleasant Point Township and 834 farms Sr g a a ro a of 15 y 24:4 acres - T . he scheme, however, provides for the serving of a further "alvanizedpipes areora ut has been indefinitely delayed owing to the shortage of St ° ppage of irrigation activities is, I hope, only temporary, but work can be resumed readily as soon as conditions improve. PUBLIC BUILDINGS. , l )e 'P art ™ ental Hidings With the exception of hospital buildings, the erection of new departmental tings o a civil nature has practically ceased. Those structures in an advanced state of construcwon were pushed ahead as circumstances permitted. The new departmental Buildings at Stout Street, Wellington, and at Jean Batten Place, Auckland, are now in occupation, but certain items, where practicable, have been deferred until after the war. _ _ Agriculture.—-At Te Kauwhata Horticultural Station considerable progress was made in the provision of more adequate buildings and winemaking equipment. The facilities so far established will assist m meeting the increasing demand for locally-manufactured wine and in raising the quality standards No further major improvements are contemplated in the immediate future. Courthouses.—-After considerable delay arising from difficulties concerning the supply of interior hmshing materials, the new Courthouse at Invercargill was completed and opened during the year. IHe old Courthouse, which was built many years ago, was neither suitable nor convenient for the conduct needed 6 w'lilt neSS ' the accommodation of the staff in the new structure is filling a muchrppWo?er+bwl com l )le *? d a , nd brou g ht into use were the new Courthouse at Ruatoria and a 3cc nstructed Courthouse at Omakau, to which centre the Court business was transferred from Ophir. H °W ltal and additions were made to provide additional ' ~ ~ a ion a Queen Mary Hospital, Hanmer, to meet stall: and other requirements in connection ATw X ?r nSlOn institution to accommodate sick and wounded soldiers. At Wellington and Invercargill alterations and renovations were carried out at the St. Helens ttospita , P i ans ere completed and tenders obtained for the new St. Helens Hospital, Christchurch but, owing to the effects of the war upon the availability of materials and building activities generally it was not round practicable to commence this proposal. Internal Marketing.—Two cool stores, at Hastings and Nelson respectively, were completed for fruit-storage purposes, including facilities for receiving and despatching supplies, i+v i ° rce(l " c o no rete building was also completed at Auckland where butter, honey, and fruit, >o, l oca y grown and imported, are handled. This building also includes accommodation for administrative offices. \iin^ m A a ?' Ju° SpUals 'lT Inorease , d accommodation for occupational-therapy work was provided at an , ie nurses home and a number of staff residences at Kingseat were completed, while other residences at Kingseat were commenced. At Ngawhatu three new villas for male patients were completed and are in occupation, and at iempleton one new villa for male patients was also completed. Work was commenced on the erection of a residence for the Assistant Medical Officer at Tokanui. + *v, r 7 7 a -, S ex tended, and the nurses' home and another building were approaching completion at the close of the year under review. Police-stations.—The police-station at Glenavy, and the offices and residence at Temuka, were Wanaka ' Statl ° nS WOre erected at Waiheke Island, Mount Maunganui, Havelock, and ™,„f e V ffi wir 6r ! provided at Kaitaia and South Dunedin, a residence for a Sub-Inspector was purchased in Wellington and sites for police purposes were acquired at Kerepehi, Ngongotaha, Petone, Karamea, Millerton, Dobson, and Riversdale. Kl -l P° stal Telegraph. The following works were completed during the year: Chief-post-office buildings at Christchurch and Invercargill; post-office buildings at Katikati and Mount Maunganui; a post-office building and residence *t Mosgiel; an automatic-telephone-exchange building at Mount W -if t an f | buddings at Dunedin, Stratford, and Wanganui; and garage buildings i"?; Llr T ood > Brighton, Rakaia, Roxburgh, and Waitara. Post-office accommodation n 11 wJr T" Gov A e ™ ment building in Jean Batten Place, Auckland, and in the new State nffi K u mg ' ® . vl Addltlons were made to the chief-post-office building at Auckland, postiw , Helensville, Kaeo, Kawakawa, New Lynn, Papanui, Waitoa, and Waitotara, the at In J er ? a rgf alld tlle garage building at Hawera. Improved accommodation was provided at Nelson, Port Nelson, and Timaru. Several buildings and sites no longer required for departmental purposes were disposed of during -he year. Sites and additional land for departmental purposes were acquired at nine places. Three residences for departmental officers were acquired. A small number of buildings were in course of erection at the end of the year, and also in progress were large additions to the departmental building at Herd Street, Wellington; additions to the onsonby automatic-telephone exchange ; major alterations to the Auckland chief-post-office building ° t + i, n < New ™ arket ) store and workshops building ; and alterations to the Awarua Radio SSfflS ,ho w ' iM h " » ,d the •» ***«- Prisons. There has been of necessity a minimum amount of new building and construction work tor prison purposes The mam works carried out included the installation of electric lighting at Rangipo Brison Camp, and the erection of a new cottage at Invercargill Borstal to relieve to a small degree the "Tf a At Borstal Institution, Te Awamutu, two new staff cottages were completed, and also a new glasshouse and tobacco-shed, which were both much needed to meet departmental requirements. EDUCATION BUILDINGS. The gross expenditure for the year on school buildings, additions, teachers' residences, and the Purchase of sites totalled £486,536, this sum including £20,850 provided by the Consolidated Fund to meet tne cost 01 minor works. and NSive schook Wll ° l6 ° f eXpenditure was incur red in respect of primary, secondary, technical

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TELEGRAPH EXTENSION. Expenditure on telegraph extension by the Post and Telegraph Department during the year in respect of telephone, telegraph, and radio facilities throughout the Dominion amounted to £173,149 as against £256,054 for the preceding year. Additional toll outlets were provided between Wellington and Palmerston North, and between Seddon and Nelson. Improved facilities were also provided between various centres by the erection of new lines and/or the rearrangement of existing circuits. It was necessary during the year to impose drastic restrictions on the provision of telephone facilities for civilian purposes. Nothwithstanding these restrictions the net gain in subscribers totalled 3,895, as against 6,814 for the previous year. The grand total of telephone stations (main and extension) in the Dominion on the 31st March, 1942, was 235,888, which is 7,542 in excess of the previous year's figure. The automatic-telephone exchange switching-apparatus at Gisborne was completed and the exchange cut over to automatic working on the sth July, 1941. The first stage of the comprehensive programme initiated in 1939 covering the extension of the automatic switching-system in the Auckland metropolitan area was completed during the year, and the second stage, comprising the establishment of new exchanges at St. ITelier's, Mount Albert, and Birkenhead, and the installation of additional switching-equipment at the Takapuna and Remuera exchanges, is being proceeded with as rapidly as possible. In addition, a commencement will be made shortly with the installation of equipment to enable an exchange to be established at Avondale. Additional switching-equipment was also provided during the year at several other automatic and magneto exchanges throughout the Dominion. A DEVELOPMENT OF TOURIST RESORTS. The principal works carried out were extensions to the Rotorua electrical and water and drainage systems. The expenditure for the year was £12,207, as against £21,575 for the preceding year. LANDS-IMPROVEMENT. The reduced scale of operations under this vote consisted principally of schemes which had already been commenced. Apart from sand-dune and tidal-flat reclamation, the major works were the Awatero Water-supply Scheme, the Ashley River Control Scheme, and the excavation of the Whirokino Cut on the Manawatu River. However, these projects are only partially completed. Rehabilitation of Flax-milling Industry. -In furtherance of the policy for rehabilitation of the flax-milling industry, there has been continued development of the flax lands in and around Moutoa. Special attention has been paid to the propagation and thickening of existing plantations, while steady progress has been made in clearing and planting, both by mechanical ploughing and disking and by hand-cultivation. The care taken in ring-barking willows, clearing and extending drains, and the removal of weeds have all contributed to the regeneration, of and improvement in the flax-leaf. LINEN-FLAX DEVELOPMENT. In connection with the further development of the linen-flax industry, my Department provided professional and technical services in respect of the selection of sites, the acquisition of land, the design and construction of buildings, and the installations essential to this important enterprise. Following on the commencement of the original ten linen-flax factories in the preceding year, the demand from Great Britain for linen-flax fibre necessitated an increase in the factory-construction programme by extending the existing factories and constructing six additional factories. Apart from the factories, including retting-tanks, and water-supplies and effluent drainage, 602 subsidiary buildings were also erected, the construction work having been practically completed by the end of the year under review. SMALL FARMS DEVELOPMENT. Owing to the increasing difficulty in obtaining adequate supplies of essential materials, development operations on the blocks controlled by the Land Settlement Board of the Lands and Survey Department had to be severely curtailed, and this, coupled with the shortage of labour, led to a decision to concentrate on the maintenance of the existing grassed lands. With reduced quotas of manure, production from these must necessarily fall. The expenditure for the year on the development and farming of the blocks, including the purchase of live-stock, was £408,298, and the credits-in-aid were £260,064. The number of men employed at the 31st March was 399, as against 721 at the end of the previous year. LIGHTHOUSES AND HARBOUR-WORKS. For obvious reasons it is not possible to give details of the nature of the works carried out last year under this vote. However, despite difficulties in supply of material from the United Kingdom, definite progress has been made with several essential works. Some works in progress at the end of the preceding year have been completed, and others which were commenced during the period under review are still proceeding. NATIVE-LAND SETTLEMENT. The gross expenditure from the Public Works Fund for the year under review was £862,104 (compared with £1,010,871 for the previous year), the finance for which was provided from the following sources : New loan-moneys, £107,915 ; grant from the Consolidated Fund, vote " Native," for the promotion of employment of Maoris, £247,500 ; miscellaneous refunds, £4,437 ; and farm and other receipts from Native land in course of development and settlement, £502,252. With the exception of £25,493 expended under the Native Housing Act, 1935, the above figures represent expenditure on the development, settlement, cultivation, and improvement of Native lands, and the progress achieved in regard to these activities is set out fully in the report of the Board of Native Affairs, which is contained in parliamentary paper G.-10. Further information concerning public works carried out during the past year is included in the attached reports by the Engineer-in-Chief, the Government Architect, and the Chief Electrical Engineer. In accordance with section 24 of the Main Highways Act, 1922, the annual report of the Main Highways Board for the year ended 31st March, 1942, is also attached, vide Appendix E.

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ELECTRIC SUPPLY ACCOUNT.—STATEMENT OF ACCOUNTS AT THE 31st MARCH, 1942. General Balance-sheet at 31st March, 1942, compared with Position at 31st March, 1941.

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Liabilities. 1941-42. 1940-41. Assets. 1941-42. 1940-41. Aid to Water-power Works and Electric £ £ £ £ £ £ Supply Accounts — North Island schenie — Debentures, Stock and Treasury Bills Assets as per separate balance-sheet .. 13,410,936 12,193,877 issued — Investments, Sinking Fund .. .. 11,748 25,242 At 1J per cent, interest .. .. .. 310,000 13,422,684 At H per cent, interest .. .. 1,415,000 430,000 12,219,119 At 2| per cent, interest .. .. 1,300,000 1,300,000 At 3 per cent, interest .. .. 3,149,372 3,224,372 At 3J per cent, interest .. .. 1,628, 994 500, 000 At 3J per cent, interest .. .. 1,711,755 1,711,755 South Island scheme — At 3f per cent, interest .. .. 170,000 567,290 Assets as per separate balance-sheet .. 7,989,162 7,663,010 At 4 per cent, interest .. .. 1,643,470 1,643,470 Investments, Sinking Fund .. .. 2,888 14,222 At 4J per cent, interest .. .. 2,623,914 2,623,914 • 7,992,050 At 5 per cent, interest .. .. 3,159,228 3,159,228 7,677,232 16,801,733 — 15,470,029 Consolidated Fund — Cobb River scheme .. .. .. .. 464,437 341,979 Interest accrued on loans to 31st March, .. 155,258 316 743 1942 Temporary transfers from other accounts .. .. .. 125,000 Interest reserve, being excess of interest .. 65,847 86,556 Surveys and General .. .. .. .. 20,265 18,963 charged to schemes over interest actually paid on capital liability Carried forward .. .. .. 17,022,838 15,998,328 Carried forward .. .. .. 21,899,436 20,257,293

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ELECTRIC SUPPLY ACCOUNT.— STATEMENT OF ACCOUNTS AT THE 31st MARCH, 1942—continued. General Balance-sheet— continued. at 31st March, 1942, is compared with Position at 31st March, 1941— continued.

J. W. SCOTT, A.R.A.N.Z., Chief Accountant, Public Works Department.

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Liabilities. 1941-42. 1940-41. Assets. 1941-42. 1940-41. ! il £ £ £ £ -£ Brought forward .. •• 17,022,838 15,098,328 Brought forward .. .. .. 21,899,436 20,257,293 Creditors— Balance in Electric Supply Account at the " North Island scheme 188,694 201 053 end of yearSouth Island scheme .. .. 74,833 72,368 Cash m Public Account 63,566 39 992 263,527 Imprests outstanding .. .. 60,452 146,240 273f421 124,018 ; 186,232 I Depreciation Reserve — North Island scheme .. .. •• 1,223,424 South Island scheme .. •• 831,583 813,288 2,055,007 — 1,925,921 Sinking Bund — Amount utilized for redemption of loans 1,838,178 1,538,178 Available for further redemptions .. 363,248 314,629 2,201,426 1,852,807 Reserve Bund — North Island scheme .. 391,990 303,958 South Island scheme .. .. 86,766 86,766 478,756 — 390,724 Sundry credit balances .. . • ■ • ' - 900 2,324 ~~~ -- - ~ " •" i Total .. .. .. .. £22,023,454 £20,443,525 Total .. .. .. .. £22,023,454 £20,443,525 Contingent Liability. , Arrears of appropriation to Sinking Bund .. 138,029 .. 214,654 Note. —No charge for cost of exchange on interest payments made in London is included. These accounts are subject to audit. The audited accounts will be included in paper B.-l [Part IV].

NORTH ISLAND HYDRO-ELECTRIC-POWER SUPPLY. Profit and Loss Account for Year ended 31st March, 1942, compared with Year ended 31st March, 1941. Gross Revenue Account.

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Net Revenue and Appropriation Account.

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3

1941-42. 1940-41. Q - I 1941-42. | 1940-41. To Generating-expenses (hydro-electric) — £ £ m " ~~ ~~ Arapuni .. .. .. .. 23 682 Sales of electrical energy — £ £ £ £ Horahora ;; 7 ' M2 28 335 Balk for resale .. .. 1,517,564 ~. 1,457,700 Manganao .. .. 1 -i atq >j-6U Utner tnan lor resale — Tuai •• 12,'727 Traction. 18,804 13>695 — 55,529 ' 7 Industrial .. .. 44,482 43 22g I Retail .. .. 3,204 5 054 Generating-expenses (fuel) — > gg £ enI ° se 2,825 —J 1,584,054 HUntly 2.849 s _ PfJ Rents _ 1,519,677 5 ' 674 Land and buildings .. .. H.640 11,162 JLmes and plant .. .. 540 Purchase of power in bulk .. onA on „ ~ — 1 o nso Standby charges .. .. " " 3 353,549 12 ' 080 69,155 65,689 11,722 -n- ,or- " Miscellaneous revenue . . .. i >U7 r vqv Transmission system : Patrol and maintenance .. .. 33'<590 Substations: Operation and maintenance .. 4t'fi4fi /o'int Communication system : Patrol and maintenance " , qto ,,' Distribution: Maintenance .... 2,296 System operation, testing, &c. .. .! " " j!™ 2,160 Management and general expenses .. " 71 227 In't f 7 Balance, to NetRevenueandAppropriationAecount .. 923'817 892 252 £1,597,981 £1 533 13 ft 1— *i,QM,A6b £1,597,981 £1,533,136

| 1941-42. 1940-41. ' _ 1941-42. 1940-41. — — i To Interest (gross) for year.ended 31st March, 1942.. -r b ' £ £ Less interest capitalized .. .. .. gg Q21 40 986 rSalance irom Gross Revenue Account .. ... 923,817 892 252 327,534 ' ■336,073 Depreciation on completed works .. . . lr , n Sinking Fund Reserve Fund .. .. . _ 89'3"? 148,937 Social Security charge, national-Security tax, income- 258' 783 284' 532 ' I £923,81/ £892,252 £923,817 £892,252 j

D.—i

NORTH ISLAND HYDRO-ELECTRIC-POWER SUPPLY— continued.

4

Depreciation Reserve Account. 1941-42. 1940-41. jl 1941-42. 1940-41. f £ £ £ To Replacements, Renewals, &c. .. .. .. 3,823 11,685 By Balance from previous year's statement .. .. 1.112 633 1,081,075 Balance.. .. .. .. .. .. 1,223,424 1,112,633 Interest at 4 per cent, per annum .. .. .. 44,505 43,243 Amount set aside as per Net Revenue and Appropriation 70,109 Account £1,227,247 £1,124,318 £1,227,247 j £1,124,318 Sinking Fund Account. £ £ £ £ To Balance.. ., .. .. .. .. 1,486,962 1,308,951 By Balance at close of previous year .. .. .. 1,308,951 1,159,820 Interest .. .. .. .. .. .. Dr. 9 194 Amount set aside as per Net Revenue and Appropriation 178,020 148,937 Account £1,486,962 £1,308,951 £1,486,962 £1,308,951 Reserve Fund Account. £ £ | £ £ To Balance.. .. .. .. .. .. 393,329 303,958 By Balance at close of previous year .. .. .. 303,958 i 181,248 Amount set aside as per Net Revenue and Appropriation 89,371 122,710 • Account ! ■ ' _ i i £393,329 £303,958 \ £393.329 ' £303,958

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NORTH ISLAND HYDRO-ELECTRIC-POWER SUPPLY— continued. Balance-sheet at 31st March, 1942, compared with position at 31st March, 1941.

3-D. 1

5

| 1941-42. | 1940-41. 1941-42. 1940-41. Liabilities. £ £ £ Assets. £ £ £ Depreciation Reserve .. .. .. .. 1,223,424 1,112,633 Hydro-electric plants — Arapuni .. .. .. .. 2,714,681 2,645,343 Sinking Fund — Horahora .. .. .. .. 327,275 327,381 Utilized for redemption of loans .. 1,297,152 .. 1,134,772 Mangahao .. .. .. .. 1,368,241 1,365,098 Available for further redemptions .. ! 189,810 1,486,962 174,179 Waikaremoana .. .. .. 780,840 713,524 5,191,037 1,308,951 5,051,346 Reserve Fund .. .. .. .. 393,329 303,958 Fuel-plants — Sundry creditors .. .. .. .. 187,355 201,053 Penrose .. .. .. .. 65,431 65,432 Sundry credit balances .. .. .. 454 544 Huntly .. .. .. .. 11,264 • 11,264 Head Office Account .. .. .. .. 10,131,160 9,291,980 76,695 76,696 Transmission-lines system .. .. .. 2,362,498 1,747 ,813 Substations .. .. .. .. .. 1,529,734 1,386,362 Communication system.. .. .. .. 181,158 171,635 Distribution system .. .. .. .. 56,687 56,664 Offices, stores, land, buildings, &c. .. .. 74,826 71,325 Cost of raising loans .. .. .. .. 333,096 307,479 Interest during construction — On assets in operation .. .. 1,000,650 973,708 On assets not in operation .. .. 79,970 51,120 1,080,620 — — 1,024,828 Works under construction .. .. .. 1,809,206 1,667,557 12,695,557 11,561,705 Plant, motor-vehicles, and tools .. .. .. 65,333 66,416 Stocks of materials .. .. .. .. 305,422 245,917 Sundry debtors .. .. .. .. 344,624 319,839 Sinking Fund investments .. .. .. 11,748 25,242 • £13,422,684 £12,219,119 £.13,422,681 £12,219,119 rT: r VD H '-'J-'-' 7/' ] ■'L-jJi -:~:i i A*

D.-l.

SOUTH ISLAND HYDRO-ELECTRIC-POWER SUPPLY. Profit and Loss Account for Year ended 31st March, 1942, compared with Year ended 31st March, 1941. Gross Revenue Account.

Net Revenue and Appropriation Account.

6

1941-42. 1940-41. I 1941-42. 1940-41. £ £ £ £ £!£ : £ To Generating-expenses (hydro-electric) — I By sales of electrical energy — Lake Coleridge .. .. .. .. 14,377 14,539 j Bulk for resale .. .. 456,201 443,535 I Lake Waitaki .. .. .. .. 10,597 8,561 Other than for resale — Kaimata .. .. .. .. 1,756 1,578 Traction .. .. 27,208 21,479 Monowai .. .. .. .. 7,186 6,370 ! Industrial .. .. 94,533 99,050 33,916 , Retail .. .. 108,792 101,965 31,048 \ 230,533 — 686,734 666,029 Generating-expenses (fuel) Dobson .. .. .. 6,997 8,422 \ j Purchase of power in bulk .. .. .. .. 170 298 Rents — Standby charges .. .. .. .. .. 225 225 Land and buildings .. .. 4,516 4,533 Lines and plant .. .. 766 386 41,308 39,993 5,282 Transmission System : Patrol and .maintenance .. 16,926 24,565 4,919 Substations: Operation and maintenance .. .. 24,856 22,230 Communication System: Patrol and maintenance .. 1,596 1,373 Miscellaneous revenue .. .. .. 8,140 7,865 Distribution: Maintenance .. .. .. .. 20,531 19,934 System operation, testing, &c. .. .. .. 12,924 11,782 Management and general expenses .. .. .. 65,249 53,412 Balance, to Net Revenue and Appropriation .. 516,766 505,524 • Account I j 1 ' £700,156 £678,813 £700,156 £678,813

| 1941-42. 1940-41, — 1941-42. 1940-41. _ — ' ' j £ £ £ ' £ £ To Interest (gross) for year ended 31st March, 1942.. 251,315 262,393 By Balance from Gross Revenue Acconnt .. .. 516,766 50-5,524 Less interest capitalized .. .. .. 9,814 8,323 241,501 —— 254,070 Depreciation on completed works .. .. .. 24,574 73,711 Sinking Fund .. .. .. .. .. 170,513 126,227 Reserve Fund Social Security charge, national security tax, .. 80,178 51,516 income-tax £516,766 £505,524 £516,766 £505,524

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SOUTH ISLAND HYDRO-ELECTRIC-POWER SUPPLY— continued.

7

Depreciation Reserve Account. 1941-42. 1940-41. 1941-42. 1940-41. ToiReplacements, Renewals, &e. .. .. .. .. 38,111 4-5,650 By Balance from previous year's statement.. .. .. 813,288 755,026 a ance .. .. .. .. .. .. 831,583 813,288 Interest at 4 per cent, per annum .. .. .. 32,532 30,201 Amount set aside as per Net Revenue and Appropriation 24,574 73,711 Account £870,394 £858,938 £870,394 £858,938 Sinking Fund Account. I : — ; £ £ £ £ To Balance .. .. .. .. .. .. 714,464 543,856 By Balance at close of previous year .. .. .. 543,856 417,605 Interest .. .. .. .. .. .. 95 24 Amount set aside as per Net Revenue and Appropriation 170,513 126,227 Account £714,464 £543,856 £714,464 £543,856 Reserve Fund Account. To Capital loss .. .. .. .. .. .. . . 33 By Balance at close of previous year .. .. .. 86,766 £87,199 Balance £86,766 £86,766 £86/766 £87,199 £86,766 £87,199

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SOUTH ISLAND HYDRO-ELECTRIC-POWER SUPPLY— continued. Balance-sheet at 31st March, 1942, compared with Position at 31st March, 1941.

8

1941-42. 1940-41. 1941-42. 1940-41. Liabilities. £ £ £ Assets. £ £ £ Depreciation Reserve .. .. . ■ •• 831,583 813,288 Hydro-electric plants — Sinking Fund— — Lake Coleridge .. .. .. .. 868,553 865,215 Utilized for redemption of loans .. .. 541,026 403,406 Lake Waitaki .. .. .. .. 1,975, /88 1,909,802 Available for further redemptions .. 173,438 _ 140,450 Kaimata .. .. .. .. 147,730 146,440 — . 714,464 Monowai .. .. .. .. 205,617 202,882 543,856 3J97 X 688 3,124,339 Fuel-plants — — Reserve Fund .. .. .. .. 86,766 86,766 Dobson .. .. . . .. .. 135,361 133,220 Transmission-lines system .. .. .. .. 1,010,578 1,027,863 Substations .. .. .. .. .. 780,328 721,510 Sundry creditors .. .. .. •• •• 74,833 72,368 Communication system .. .. .. .. 81,417 73,017 Distribution system .. .. .. .. 885,115 872,193 Offices, stores, land, buildings, &c .. .. .. 21,684 21,671 Sundry credit balances .. .. .. •• 1,446 1,778 Cost of raising loans .. • . -. .. o40,495 o32,492 Head Office Account .. .. •• 6,282,958 6,159,177 Interest during construction — On assets in operation .. .. .. 490,217 482,275 On assets not in operation .. 9,216 7,344 — 499,433 — — 489,619 Works under construction .. .. .. .. 421,379 293,129 7,573,478 7,289,053 Plant, motor-vehicles, and tools .. .. .. 107,922 110,852 Stocks of materials .. .. .. .. 158,758 126,093 - Sundry debtors .. .. .. .. .. 149,004 137,012 Sinking Fund investments .. .. .. .. 2,888 14,223 £7,992,050 £7,677,233 ' £7,992,050 £7,677,233 Contingent Liability. ' ~ Arrears of appropriation to Sinking Fund .. £138,029 £214,654

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APPENDICES to the PUBLIC WORKS STATEMENT, 1942. APPENDIX A. AUDITED STATEMENT OF EXPENDITURE ON PUBLIC WORKS OUT OE THE PUBLIC WORKS FUND FOR THE YEAR 1941-42. Prepared in compliance with Section 8 of the Public Works Act, 1928. Public Works Department, Wellington, 25th June, 1942. Sir, — In compliance with the Bth section of the Public Works Act, 1928, I enclose a statement of the expenditure during the preceding financial year on all works and services chargeable to the Public Works Fund. I have, &c., H. T. Armstrong, The Controller and Auditor-General, Wellington. Minister of Public Works.

Statement of Net Expenditure on all Works and Services chargeable to the Public Works Fund for the Year 1941-42.

4 —D. 1.

9

! | | Summary. Appropria- Gross | Credits in Aid tion. Expenditure. J >n Aid. Expenditure. Public Works Fund. General Purposes Account—• £ £ s. d. £ s. d. £ s d Public Works, Departmental .. .. 200,000 546,769 9 2 444,033 4 9 102,736 4 5 Railways: Railway Construction .. 848,250 811,015 6 9 117,263 12 5 093'751 14 4 Public Buildings .. .. .. 1,458,000 1,224,784 0 11 26,882 4 9 1,197,901 16 2 Lighthouses and Harbour Works .. 50,000 20,826 18 11 1,989 19 0 18,836 19 11 Development of Tourist Resorts .. 20,000 15,182 2 5 2,974 15 2 12,207 7 3 Roads, Bridges, and other Public Works .. 390,000 294,045 1 10 51,099 19 2 242'945 2 8 Telegraph Extension .. .. .. 275,000 434,319 12 8 261,172 10 5 173J47 2 3 Lands, Miscellaneous .. .. .. 200,000 163,979 4 11 63,730 9 7 1.00,248 15 4 Irrigation, Water-supply, and Drainage .. 552,000 538,176 6 2 51,690 2 5 486',486 3 9 ♦Small Farms Development .. .. 388,200 463,746 9 4 260!084 7 0 203 ,682 2 4 Native Land Settlement .. .. 250,000 862,103 18 4 754,188 4 6 107,915 13 10 Linen-flax development .. .. 716,000 679,728 8 10 107,606 10 6 572,121 18 4 Unauthorized: Services not provided for .. .. 824 11 5 .. '824 11 5 Totals, General Purposes Account .. 5,347,450 6,055,501 11 8 2,142,695 19 8 3,912,805 12 0 Electric Supply Account— Development of Water-power .. .. 2,957,375 2,305,080 19 7 83,277 19 5 2,221,803 0 2 Totals, Public Works Fund .. 8,304,825 8,360,582 11 3 2,225,973 19 1 6,134,608 12 2 * Includes vote "Settlement of Unemployed Workers" previously shown as separate vote.

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APPENDIX A—continued.

■ J. W. Soott, A.R.A.N.Z., Chief Accountant. W. L. Newnham, Engineer-in-Chief and Under-Secretary. The expenditure charged to the Public Works Fund has been examined and found correct subject to the remark that, as the Appropriation Act, 1941, made no provision for subdivisions in vote, " Public Buildings," the allocation of expenditure to the several subdivisions of that vote has not been checked.—Cyril G. Collins, Controller and Auditor-General.

10

Name of Vote. I potion. Expenditure. Credits in Aid. Expenditure. Public Works Fund. General Purposes Account —■ £ £ s. d. £ s. d. £ s. d. Public Works, Departmental .. .. 200,000 546,769 9 2 444,033 4 9 102,736 4 5 Railways — Railway Construction .. .. 648,250 617,724 2 8 88,038 1 4 529,686 1 4 Railways Improvements and Additions to 200,000 .193,291 4 1 29.225 11 1 164,065 13 0 Open Lines Public Buildings .. .. .. ; 958,000 .. .. Subdivision! —Public Buildings, General .. 393,188 1 0 2,786 11 9 390,401 9 3 Subdivision IT —Courthouses .. .. .. 12,702 1 3 5,000 15 5 7,701 5 10 Subdivision III —Prison Buildings and .. 2,665 13 6 65 10 6 2,600 3 0 Works Subdivision IV—Police-stations .. .. 27,843 6 1 5,073 15 6 22,769 10 7 Subdivision V —Postal and Telegraph .. .. 207,769 4 9 1,288 15 5 206,480 9 4 Subdivision VI —Mental Hospitals .. .. 80,276 18 11 449 14 11 79,827 4 0 Subdivision VII—Health and Hospital .. 34,652 12 7 16 19 11 34,635 12 8 Institutions Education Buildings .. .. .. 500,000 465,686 2 10 12,200 1 4 453,486 1 6 Lighthouses and Harbour Works .. 50,000 20,826 18 11 1,989 19 0 18,836 19 11 Development of Tourist Resorts .. 20,000 15,182 2 5 2,974 15 2 12,207 7 3 Roads, Bridges, and other Public Works .. 390,000 294,045 1 10 51,099 19 2 242,945 2 8 Telegraph Extension .. .. .. 275,000 434,319 .1.2 8 261,172 10 5 173,147 2 3 Lands, Miscellaneous .. .. .. 200,000 163,979 4 11. 63,730 9 7 100,248 15 4 Irrigation, Water-supply, and Drainage .. 552,000 538,176 6 2 51,690 2 5 486,486 3 9 Small Farms Development .. .. 388,200 463,746 9 4 260,064 7 0 203,682 2 4 Native Land Settlement .. .. 250,000 862,103 18 4 754,188 4 6 .107,915 13 10 Linen-flax Development .. .. 716,000 679,728 8 10 107,606 10 6 572,121 18 4 Unauthorized: Services not provided for. . .. 824 11 5 .. 824 11 5 - ■ Totals, General Purposes Account .. 5,347,450 6,055,501 11 8 2,142,695 19 8 3,912,805 12 0 Electric Supply Account.— Development of Water-power .. .. 2,957,375 2,305,080 19 7 83,277 19 5 2,221,803 0 2 Totals, Public Works Fund .. 8,304,825 8,360,582 11 3 2,225,973 19 1 6,134,608 12 2 Note. —This statement includes only the expenditure on works, and does not include expenditure such as interest, sinking funds, and charges and expenses of loans.

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APPENDIX B.

ANNUAL REPORT ON PUBLIC WORKS BY THE ENGINEER-IN-CHIEF. The Engineer-in-Chief to the Hon. the Minister of Public Works. Sib, — I have the honour to submit the following report upon the various public works completed and in progijsss throughout the Dominion during the year ended 31st, March, 1942. RAILWAYS. Dargaviile Branch Railway. —-Except for buildings at Dargaville, this work is complete, and a goods arid passenger service is now being operated by the Railways Department. Paeroa-Pokeno Railway. —Construction was suspended in 1940, and work during the year lias been confined to maintenance. Turakina-Okoia Railway Deviation.- The only works to complete this deviation are ballasting, platelaying, erection of station buildings, and completion of the superstructure of the bridges over the Turakina and Wangaehu Rivers. Napier Gisborne Railway.—The greater part of the construction was completed, and included' the completion of the last two tunnels, and four bridges over the Waiau Stream. One of these bridges is 530 ft. in length, with a central arch of 180 ft. span, the longest reinforced-concrete arch span in a railway bridge in New Zealand. There is a gap of only 2,480 lineal yards in the platelaying, and it is anticipated that this will be linked up to take traffic this year. South Island Main Trunk Railway.—Work on most of the construction is suspended, activity being confined to maintenance and to heavy protection works for the bridges over the Clarence and Hapuku Rivers. Over a distance of 13 miles between the pegs approximately 3 m. north of Kaikoura and 7 m. north of Hundalee respectively, the uncompleted sections of formation total 5§ miles, a considerable amount of which is well advanced. Progress during the year has included the completion of bridges' over the Waimangarara Stream, Middle Creek, and Oaro Streams, and the Okarahia Viaduct. Repairs have been carried out to the Amuri Tunnel, but work on other tunnels and on four other bridges has been suspended. West-port Inangahua Railway.—The official ceremony of driving the last spike took place on 2nd December, 1941. Only a small amount of formation, ballasting, buildings, and bridge work is required for completion. IRRIGATION. Central Otago. The rainfall before the irrigation season was very light, but good rains were experienced from November, which enabled the irrigation to proceed without the rationing which was anticipated at the commencement of the season. The usual maintenance was carricd out, the major items being the relocation of 1,040 ft. of 33 in. pipe-line on the Arrow Scheme, and the renewal of 712 ft. of steel pipes with reinforced-concrete piipes on the Teviot Scheme. Irrigation water was supplied to 509 irrigators, and the total area irrigated was 52,620 acres, out of a total commanded area of 64,000 acres. Financial results of the year's working are as follows : Revenue, £27,600 ; working-expenses, £22,550 ; profit on working, £5,050 ; total rates collected, £26,430. On the Omakau Scheme, where the water is sold on demand, the total sales were 9,980 acre feet, or an increase of 1,200 acre feet on the previous year's total. This increase is particularly encouraging. Canterbury. —On the two ojJerating schemes, Redcliff "and Levels, there was a fall in revenue compared with the previous year. These schemes are operated on the demand basis, and the fall in revenue is due to the shortage in farm labour and the uncertain outlook due to war conditions, preventing farmers from embarking on the expenditure necessary to change their farming methods at present. Irrigation water was supplied to 65 irrigators, who irrigated 3,400 acres of the 27,400 acres for which water was available. The financial results were as follows : Revenue, £605 ; expenditure, £2,222. Downs Water-supply Scheme : This scheme is completed with the exception of 10,453 acres of pipe reticulation in the Pareora district, for which there are no pipes available. The total number of 834 farms, comprising 135,244 acres, are now receiving water in addition to Pleasant Point Township. The scheme includes the construction of six reinforced-concrete reservoirs, 58 miles of mains and sub-mains, and 612J miles of galvanized reticulation piping. Schemes under Construction. ' Ashburton-Lyndhurst Scheme. —Races completed, 132 miles, reinforced-concrete structures, 1,823, or 94 per cent, of total required to regulate the supply of water. Mayjield-Hinds Scheme.—Some progress was made during the early part of the year, including 79,300 cubic yards of race excavation and the construction of 48 concrete structures. The progress on both of these schemes is at present almost suspended, due to the diversion of labour and plant to urgent military works. Rangitata Diversion Race. —This 42-mile diversion canal is nearing completion, and the available labour and plant is being kept on with a view to completing the work, to enable the water to be supplied to Highbank Power Scheme next winter. The principal progress is the completion of the large 12-ft.-diameter reinforced-concrete conduit at Surrey Hills, the intake work, the large reinforced-concrete syphons under the South Hinds, Taylor's, South Bowyer, and North Bowyer Streams, and the Ashburton River. Canterbury Irrigation Investigation. —This work has been considerably curtailed, but the important continuous records have been maintained.

11

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HYDRO-ELECTRIC DEVELOPMENT: CONSTRUCTION WORKS. Arapuni Power Scheme.—Concrete foundations for units No. 5 and No. 6 were completed. Penstock lining for No. 6 is completed, and No. 5 is nearly complete. Karapiro Power Scheme.- The diversion tunnel was completed with the exception of some work at either portal, concreting the invert, and removal of construction lifts. The gate shaft was excavated, and part has been concreted. Some 116,000 cubic yards have been excavated on the right bank for the dam, but work has now been suspended temporarily. Taupo Headworks. —The gate structure and main cut were completed, together with most of the cut at Totara Rapids. Waikaremoana Lower Development. —Whakamarino Dam and automatic spillway were completed, four gates installed, ajid the lake-bed cleared of scrub. The tunnel intake was completed, concrete gates were placed in position, and tunnel and siphons completed except for a small closing gap. Concreting of surge chamber was complete to R.L. 911 and headgate shaft excavated* Penstocks are concreted up in tunnels, supporting pedestals completed, and the steel pipe-line welded up except for 5 ft. gaps. The powerhouse structure was completed except for a few small details. The deepening and widening of the old river-bed for the tailrace has been completed as far as possible at present. Cobb River Power Scheme.—lnvestigation of the dam-site has been carried out and bores and shafts sunk. The tunnel was pierced during the year, and some excavation to full section and concreting of footings, walls, and arch carried out. Excavation for the pipe-line was practically completed. Further work on access roads up to the dam has been carried out and miscellaneous buildings erected. Lake Tekapo Power Scheme. —Buildings for workmen's accommodation and for the manufacturing of concrete blocks have been erected, and all construction plant installed. One of the two tunnel shields is nearing completion at Temuka. At the inlet a heading was driven for 40 ft. down-stream from the shaft to take the shield. This shaft has been concreted up, and other measures taken to safeguard the work until construction is resumed. Operations have now been temporarily suspended on this work. Highbank Power Scheme.—This scheme will be supplied with water from the Rangitata Diversion Race, and work is continuing to bring the scheme into operation as soon as possible. The 11 ft. concrete pipes for the low-pressure portion of the penstock are cast, and most of the steel for the high-pressure portion is in hand. The powerhouse and staff cottages are under construction. A reinforced-concrete substation building, water-tower, and staff cottages are being erected at Hororata, where power from Highbank will link up with the South Island system. CONSTRUCTION AND IMPROVEMENT OF ROADS. A further reduction was made in the scope of operations relating to the construction and improvement of roads and bridges. Where practicable, formation work was suspended, and many roading proposals which in normal times would merit immediate attention have had to be deferred until conditions generally become favourable. The following is a summary of the completed work for the past year : Formation, 105 miles ; metalling, 160 miles ; bridging, 6,017 lineal feet; culverting, 12,340 lineal feet. LANDS-IMPROVEMENT. Water-supply.—-Concrete reservoirs have been constructed for the small farm settlements at Te Mairc and Rchutai. Swamp Drainage.—'Work has continued on the raising of the Ruawai and Naumai stop-banks. Kaipara Harbour Reclamation at Glorit, Kukutanga Block, and Oyster Point. —Maintenance has been continued, together with other work on water-supply, fencing, clearing, drainage, and roading. Sand-dune Reclamation.- The Woodhill area is in good condition. Maintenance and replanting have been carried out where necessary, together with some work on fire-breaks, fencing, and nursery work. Three hundred and seventy-six thousand new trees have been planted out. The areas at South Kaipara Heads and Pakiri-Mangawai have been maintained, with a certain amount of replanting. On the North Waikato Heads area progress has been maintained on all stages of the work, and a new tree nursery established. Two hundred and seventy thousand trees have been planted out. Waitoa Stream,.- One hundred and twenty chains of diversion cuts were completed and 4| miles of stream-snagging carried out. Kurere-Komata Drain. —Work consisted of 52 chains of drain-deepening and the installation of two flood-gates. Malatoki Drainage Scheme is almost completed. Mangaorongo Stream.—Clearing of willows and logging were carried out for 4 miles 47 chains. Judea Swamp Drainage.—This work is now completed. Mangapu Drainage Board.—Work has continued on the Mangapu, Orahiri, and Mangarama Streams. Manawatu River (Whirikino Cut). —This cut is about half complete, the excavation being on an average down to high-water mark. liokio Sand-dune Reclamation. —Maintenance and replanting were carried out during the year. Ashey River Control. —Major floods during the year caused extensive damage, and partial repairs have been carried out to give a reasonable degree of safety. Karamea Flood Control,. —The stop-bank on Blackburn's property was completed and other works carried out. LIGHTHOUSES AND HARBOUR-WORKS. Lighthouses. Routine maintenance and overhaul of equipment have been carried out to the various lighthouses. Cape Reinga.—The light-tower installation, buildings, and 75 ft. towers have been completed. Moko Hinau.—An underground concrete reservoir has been constructed. Portland Island. —An access road has been formed between the landing and the lighthouse, and the channel leading through the reefs widened.

12

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Clay Point, Tory Channel. —Concrete plinth and cylinders have been completed and the light is now in operation. Godley Head.- -This light was moved to a position further down the cliff and an old gas light installed. Puysegur Point.—Work is in hand on the erection of a new tower. HARBOUR-WORKS. Ilouhora Wharf.---The new concrete wharf has been completed. Westhaven Wharf—Reinforced-conorete breastwork, 100 ft. long, has been completed. Damage was sustained during the placing of the approach filling, and repairs "are under consideration. Havelock Wharf. —Repairs have been completed. LINEN-FLAX DEVELOPMENT. The programme of the previous year has been expanded, and, in addition to the completion of the ten factories' commenced the previous year, six new factories are now in hand—namely, at Seddon, Geraldine, Fairlie, Clydevale, Gore, and Woodlands. The programme also involved the building of retting-tanks at Oxford, Methven, Washdyke, Tapanui, and Winton. At every factory the services have been made complete, and included accommodation (in some cases up to one hundred workmen), water-supply, sewerage, drainage, and fire-fighting, and a considerable amount of these services have been completed during the year. TEMPORARY ACCOMMODATION FOR CHEESE-WORKERS. The arrangement under which temporary accommodation was provided for cheese-factory workers has now been terminated in view of the situation having been met to a reasonable degree. DEFENCE WORKS. In addition to the miscellaneous construction works carried out on behalf of other Departments, the Public Works Department was engaged in a very active construction programme related to the requirements of the armed services. All sections of the Department have devoted their energies towards the urgent prosecution of necessary works, and just prior to the close of the year under review the hours of duty for staff and workmen were extended in order to expedite the completion of defence construction works. PUBLIC BUILDINGS AND ELECTRIC SUPPLY. Reports on public-buildings works and on the operations of the State electric-supply undertakings are contained in the separate reports, included herewith, of the Government Architect and Chief Electrical Engineer, respectively. STAFF. I would like to place on record my deep appreciation of the splendid work carried out by all members of the staff during a very difficult period. They have responded to every call made upon them, regardless of personal considerations, and by their efforts huge programmes of an urgent nature have been carried through in record time. Long hours of overtime have been worked without complaint, and in many cases without adequate compensation, and it is my strong recommendation that something further be done in the direction of adequate payment for the lone hours worked. ' ° I have, &c., W. L. Newnham, M.lnst.C.E., Engineer-in-Chief.

APPENDIX C. ANNUAL REPORT ON BUILDINGS BY THE GOVERNMENT ARCHITECT. The Government Architect to the Hon. the Minister of Public Works. Sir, — I have the honour to submit the following report on the activities of the Architectural Branch for the year ended 31st March, 1942. The whole of my organization has been occupied with work for the armed services, with the exception of a certain amount of hospital work and works for the Emergency Precautions Service. By close liaison with the Ministry of Supply I have watched the position with respect to materials and have endeavoured to make fullest use of such as are available. I wish to place on record the whole-hearted co-operation of my staff in carrying out a heavy programme and adopting new methods to meet new situations as they arise. Department of Agriculture.—At Te Kauwhata, Blocks A and C of the winery and distillery were completed. A wheat research laboratory and glasshouse have been built at Canterbury Agricultural College. Education Dejiartment. —The following secondary-school buildings were completed during the year : New Plymouth Boys' High School laboratory block; Nelson College, a two-story reinforced-conerete building ; and a technical block at Waimate High School. Mental Hospitals Department. -Three new villas were completed at Ngawhatu, Nelson ; a villa No. 5 at Jenkins Farm, Christchurch ; and a nurses' home and laundry block built at Hokitika. Health Department.—Extra accommodation has been erected in a modern building at Hanmer. Extensive renovations were carried out at St.. Helens Hospital, Christchurch ; and at St. Helens Hospital, Invercargill, labour and laundry blocks were erected.

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Justice Department. —A new Courthouse has been built at Invercargill. Post and Telegraph Department. —New telephone-exchanges were erected at St. Heliers and Mount Albert, and post-offices built at Katikati, Mount Maunganui, and Invercargill. Line stores and garages were constructed at Stratford and Hawera. Extensive alterations were made to the Chief Post-office, Auckland. Internal Marketing.- A. large cool store was built at Hastings and a cool store provided at Nelson. Industries and Commerce. —Linen-flax factories were completed at Woodlands and Gore. Departmental Buildings.—At Auckland the new building known as " Jean Batten Place " was finished, and the new Stout Street building at Wellington was temporarily completed for urgent occupation. I have, &c., R. A. Patterson, A.N.Z.1.A., Government Architect.

APPENDIX D. ANNUAL REPORT OF THE CHIEF ELECTRICAL ENGINEER. The Chief Electrical Engineer to the Hon. the Minister of Public Works. Sir, — I beg to report on the position of the development of electric power in the Dominion for the past year, as follows : — North Island Electric-power System. 1. Capital Outlay. —At the close of the year 1941—42 the total capital outlay was £10,808,381 representing assets in operation, and £1,887,176 representing assets not in operation, giving a total capital outlay of £12,695,557. 2. Financial Results. —The total revenue for the year amounted to £1,597,981. Workingexpenses were £674 x 164, resulting in a gross profit of £923,817, equal to a return of 9 04 per cent, on the average capital in operation (£10,214,397). 3. System Operation. —Arapuni and Horahora Power-stations were normally run continuously in parallel with Waikaremoana and Mangahao, and assistance was obtained from King's Wharf, Evans Bay, and the smaller stations as required. Control of Lake Taupo became effective on 4th September, 1941, when the new gates at the outlet were put into operation, enabling the flow of the Waikato River to be regulated to suit the power-system requirements. Approximately 74,550 tons of coal were used at King's Wharf Steam Station, and approximately 26,470 tons of coal and 9,840 tons of oil were used at Evans Bay Steam Station. Transmission-line losses were considerably reduced by the putting into service of new 110 kV. transmission-lines, the most important of these being the Ongarue-Bunnythorpe line. The maximum half-hourly load on the system, was 252,400 kW. at 17-30 hours on Monday, 23rd June. The maximum load in the northern area was 137,500 kW. and in the southern area 116,800 kW. The units generated and purchased totalled 1,306,838,519. Units sold totalled 1,182,020,169, and units otherwise accounted for 14,017,257. The balance, 110,801,093, represents transmission and distribution losses amounting to 8-5 per cent, of the total output. The late delivery of new generating plant on account of the war has made it necessary to restrict load to a certain extent and has also necessitated very close control of the existing stations by load despatching. 4. Construction. —Arapuni: No. 6 tunnel and about half the length of No. 5 tunnel have been lined. Karapiro : Work was continued for some time on excavation for the dam, power-house, and spillway, and on excavations and concreting for the diversion tunnel. Construction work has now been largely suspended. Waikaremoana Main : New exciters and new voltage regulators were installed on Nos. 1 and 2 generators. A start was made on the erection of new outdoor JlO kV. switchgear. * Waikaremoana Lower : Construction work on this new station has proceeded throughout the year., but late delivery of essential equipment has delayed, progress. The erection of one machine is well advanced and it is hoped to have this unit in operation early in the spring. Substations : New transformers and switchgear were installed at a number of substations. Transfers of transformers between various substations were carried out. New substations at Te Kiri, Greytown, and Mataroa were put into service. Transmission-lines : Arapuni-Penrose No. 2 double-circuit tower-line, Penrose-Henderson doublecircuit tower-line, and Ongarue-Bunnythorpe and Woodville-Napier 110 kV. lines were completed and put into service. The Penrose-Henderson line is being used at 50 kV. temporarily. Stratford-Te Kiri 50 kV. and Mataroa-Waiouru 11 kV. lines were completed and put into service. The Henderson-Takaptma 50 kV. line was deviated and rebuilt over a large part of its length to enable a harbour crossing near Hobsonville Aerodrome to be eliminated.

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Erection work on the Tuai-Piripaua double-circuit 110 kV. line was practically completed Erection work proceeded on the Arapuni-Ongarue 110 kV. line, and survey work was carried out on the Bombay-Waiuku, Edgecumbe - Te Puke, and Khandallah - Central Park lines. 5. Operation and Maintenance. —Operation and maintenance have been carried out as usual so far as abnormal conditions have permitted. Shortage of staff and petrol restrictions have made conditions very difficult at times. In spite of this the usual high standard and reliability of supply have been maintained. South Island Electric-power System. 1. Capital Outlay. —At the end of the year 1941-42 the total capital outlay was £7,142,883 representing assets in operation, and £430,595 representing assets not in operation, giving a total capital outlay of £7,573,478. 2. Financial Results. —The total revenue for the year amounted to £700,156. Working-expenses were £183,390, resulting in a gross profit of £516,766, which equals a return of 7-2 per cent, oil the average capital in operation. 3. System Operation.—Lake Coleridge, Arnold, and Waitaki Power-stations were normally run in parallel with Monowai and Waipori. The Dobson Diesel Station was run as required to assist the hydro stations. An agreement was made with the Dunedin City Council whereby the Waipori Station could be operated more effectively as part of the South Island system. The maximum half-hourly load on the system (excluding Waipori) was 90,400 kW. The units generated (excluding Waipori) were 424,569,370. Of these units 334,193,972 were sold by Ohristchurch District, 30,784,866 by Invercargill District, and 4,870,080 were otherwise accounted for. The balance, 54,720,452, represents transmission and distribution losses amounting to 12-8 per cent, of the units generated. 4. Christchuroh District. —Construction : Waitaki Power-station. No. 4 unit at Waitaki was completed and placed in service on 25th May, 1941. Substations : New transformers were installed at Addington. A new outdoor switchgear structure was completed at Ashburton. Transmission-lines: A new 110 kV>. line from Ashburton to Timaru was completed. A doublecircuit 11 kV. line at Otira was completed. Approximately 20 miles of the Timaru-Tekapo 110 kV. line was completed. Operation and Maintenance: Operation and maintenance have been carried out as usual. Abnormal conditions have created difficulties, but the usual high standard and reliability of supply have been maintained. 5. Invercargill District.—Supply, Consumers, Unit Sales, &c. : The number of consumers and the connected load continued to increase in all areas. The number of rural consumers is now 12,426 with a connected load of 57,954 kW. The units sold for various purposes, and the average charges per unit were as follows :— d. Domestic .. .. .. .. 7,451,619 2-225 Commercial . . . . . . . . 3,354,376 2• 28 Industrial .. .. .. .. 7,750,831 0-99 Local body (bulk supply) .. .. .. 12,176,546 0-54-Unit consumption in respect of three of Southlands important industries—i.e., coal-mines, freezing-works, and limeworks—was 1,120,312, 3,477,897, and 1.053,807 respectively. The revenue from sales of electric energy for all purposes in Southland amounted to £161,529. Operation and Maintenance : Operation and maintenance have been carried out as usual as far as shortage of staff, petrol restrictions, and other abnormal conditions would permit. New transformers were installed at Invercargill Substation, and new 11 kV. switchgear was installed at Invercargill and Gore Substations. Extensive overhaul of the Monowai-Wintou 66 kV. lines was carried out. On the distribution system thirty-two new transformer installations with a total capacity of 260 kVA. were completed. Extensive transformer overhaul was carried out in the field. In Riverton •» Borough a change over from 3-3 to 11 kV. was made. At Winton Pole-factory 1,434 concrete poles were cast during the year. The usual reliability of supply-has been maintained. 6. Nelson District. —General : No part of the Cobb River scheme is yet in operation except the Stoke Diesel Station and part of the 66 kV. Stokc-Cobb transmission-line (at 11,000 volts). Construction: Cobb Power-station : The construction of the headworks was continued, but due to drain of manpower the anticipated progress was not made. The work completed included the access road to the dam. The tunnel was pierced, and enlarging and concreting are in progress. Substations and Transmission-lines: Work proceeded on construction of substations and transmission-lines. The survey of the Stoke-Blenheim 66 kV. line was completed for seventeen miles. Registration of Electrical Wiremen. In addition to the two regular examinations during the year, six special examinations were held, five for members of the armed forces who were proceeding overseas, and the other for a naval petty officer whose ship was leaving before the regular examinations. Capping and casing was used in the two practical examinations. There were 382 candidates for the wiremen's written examination and 252 for the practical examination. Of these, the percentages passes were 32 per cent, and 56 per cent, respectively. For the servicemen's examinations there were 83 and 66 candidates for the written and practical parts respectively, and of these the percentage passes were 59 per cent, and 68 per cent.

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Design.

1. Electrical Section.—Detail work was carried out in connection with new power-stations at Waikaremoana Lower, Highbank, and Karapiro, and in connection with extensions at existing power-stations. Design work for new buildings, building extensions, new substations, substation extensions, transmission-lines, &c., was carried out as usual. Work for other Departments and in connection with electric supply to aerodromes and military camps was dealt with. Additional fire-fighting and A.E.P. facilities for main stations were designed. 2. Hydraulic Section.—lnvestigation lias been continued on the future resources of the Waikato River. Besides surveys and boring, assistance has been given by the Geological Survey Department in geophysical tests. Observations have been resumed in connection with the Waikaremoana Upper development. Design and supervision of works and the recording of water resources have been carried on continuously. I have, &c., E. T. M. Kissel, B.SC., M.1.E.E., A.M.1.C.E., Chief Electrical Engineer.

APPENDIX E. EIGHTEENTH ANNUAL REPORT OF THE MAIN HIGHWAYS BOARD. The Hon. the Minister of Public Works, Wellington. Sib, — In accordance with requirements of section 24 of the Main Highways Act, 1922, the Main Highways Board has the honour to submit its eighteenth annual report for presentation to Parliament. The report covers the period Ist April, 1941, to 31st March, 1942. General. The only improvement works commenced during the year were those of an essential nature or of military value, and those works in hand which were not considered to be of an urgent nature were stopped immediately they had been brought to a stage where they could be safely left without creating a danger to traffic. With the restricted amount of petrol available to private-car owners the volume of traffic using the roads with this type of vehicle has been greatly reduced, but it is the heavier type of vehicle with its increased loading, and what is very often excessive speed, that causes the greatest damage to our road surfaces. There are many of the latter type of vehicle still operating, and on account of their activities the thickness of road crusts will require to be increased in several areas if we are to avoid heavy reconstruction costs at an early date. Main highways have been generally maintained to a reasonable standard, and at the same time a considerable reduction has been made in the total maintenance charges for the year. The position has now been reached, however, where maintenance expenditure should be increased if we are to avoid a rapid deterioration of highway surfaces. It has always been the policy of the Board to preserve as far as possible the assets which loan and capital funds have created, and even after allowing for existing conditions it would be false economy to now neglect the adequate maintenance of roads that have cost the community many millions of pounds to build up to their present standard. In common with other activities, scarcity of materials, increased costs, and reduction in available man-power are tending to make the Board's operations difficult and expensive to carry out in a satisfactory manner. The Board's anticipated revenue for the coming year is not sufficient to cover the cost of the fixed charges and adequately maintained roads, and unless additional loan-money is forthcoming very heavy expenditure will be required in the future, in order to bring the road surfaces back to their previous high standard. Personal. —The Board sustained a severe loss in the death of Mr. C. J. Talbot on the 26th March, 1942. Mr. Talbot, who was one of the Members representing the New Zealand Counties' Association, had been a member of the Board since the 27th July, 1926, and his knowledge of county administration, coupled with his high sense of justice, made him a most valued member of the Board. It is also with deep regret that the Board has to record the death, on the 7th October, 1941, of Mr. G. C. Godfrey, a foundation member of the Board. Legislation. —New legislation affecting the Board during the past financial year has been National Development Loans Act, 1941: The outstanding balance of all loans raised for the construction of main highways have been transferred to the National Development Loans Account, and shall bear interest at such rate as the Minister of Finance prescribes. This procedure will increase the loan charges against tlie Main Highways Account by quite a considerable sum for the coming year. Motor-vehicles Registration Emergency Regulations 1942 provide for a reduction in the annual fee payable in respect of annual licenses for a private motor-car from £2 to £1 15s. This provision will greatly reduce the Board's revenue. A general description of the year's work as a whole is as follows :— Reconstruction and improvement works have been kept to a minimum, and have comprised practically only the completion of works already in hand and those required for military purposes. The sealing programme has been drastically reduced, and has consisted principally of the renewal of worn surfaces which could not be allowed to deteriorate further. The length of dustless surfacing has been increased by 61 miles, making a total of 3,537 miles, or 28-5 per cent, of the highway system. The previous year's increase was 243 miles,

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A certain number of bridges, which had passed beyond the end of their useful life to a dangerous condition, were put in hand for reconstruction so far as supplies of materials and man-power would permit. These are located chiefly in the Whangarei and Napier districts. Approximately 3,000 ft. of bridges were completed during the year, the largest being the 540 ft. Mataura River bridge, near Wyndham, in Southland County. The completion of two overbridges: —one near Auckland and one in the Dunedin district —has eliminated two further level-crossings, another at Auckland has been dealt with by a subway, and two more near Hunterville and Napier have been brought into use by completion of their approaches. The total number of crossings made safe under this programme is now 120. The principal reconstruction work undertaken was that of the 17-mile section between Waiouru and Taihape. The formation is nearing completion, and the greater part of the length has been metalled and sealed. A 6-mile length, including two bridges, is in hand on the Pokeno-Paeroa highway, and 4 miles near Helensville, while 8| miles has been reconstructed between Waiuku and Kohekohe. Shorter leijgths have been carried out elsewhere, particularly in the Napier district and on the Wangainoa Hill, Nelson. Sealing in the Auckland district comprised principally 3f miles of first-coat and 5 miles of secondcoat adjacent to Otorohanga, 2 miles near Turua in Hauraki Plains County, 3J- miles at Leamington, and 12 miles south of Putaruru. In the Tauranga district, 3| miles was sealed on State highways and 3J miles on those in the Gisborne area. On the Taupo-Napier highway a recently-constructed section of 3 miles received a sealing-coat, and shorter lengths on other highways completed a total of 7 miles in the Napier district. Very little new surfacing was undertaken in the Taumarunui and Taranaki districts, but Wanganui recorded 24| miles; including 9 miles on the Waiouru-Taihape section mentioned above. The Wellington district accounted for 3§ miles, principally in the second-coat sealing of the main Hutt road. Several sections in the Mariawatu area were widened and treated with plant-mix. On the Wangamoa Hill, Nelson, 6J miles was sealed, and the Canterbury districts returned 14 miles, including a 6-mile length in Ashburton: County. A plant-mix smoothing-coat waslaid on the 16-mile Hinds-Orari section, and on 14| miles between Pareora and Deep Creek, both on the Christchurch-Dunedin highway. Practically no sealing was done in Otago but in Southland 1\ miles was surfaced on the LorneRiverton State highway, together with several short township sections. At the Homer Tunnel, Milford Sound, ring-drilling preparatory to enlargement was carried out over the full length, and 922 ft. enlarged to full size. The concrete avalanche-protection at the Cleddau portal has been completed for a length of 246 ft., and all work is now suspended. The construction of footpaths was continued to a limited extent, the principal items being three f-mile lengths in the Auckland district and J-mile near Wellington. Flood damage has been very heavy in some districts, principally Taumarunui, Wellington, Nelson, and the West Coast. In Taumarunui and Wellington East restoration work has been practically continuous throughout the year, as far as supplies of plant and man-power would permit. The removal of slips has been greatly facilitated, in both time and cost factors, by the use of modern machinery. The maintenance of signposts has been carried out on main highways by automobile associations, under subsidy from the Board, as usual. The sixteenth examination for Foremen and Overseers of Road Construction was held on the 29th October, 1941, when only fifteen candidates presented themselves. Of the five candidates who sat for papers Nos. 1 and 2, two were successful in passing both. Five candidates passed paper No. 1 only, while four passed No. 2 only. To date, one hundred and forty-seven certificates have been issued. The Board, would like to express its sincere appreciation of the co-operation extended to it by local authorities and automobile associations during the year, and looks forward to a continuance of the same good relationship during the difficult period ahead. As usual, the Public Works Department has rendered valuable services to the Board in matters relating to main highways administration, and the Board extends its thanks to the officers concerned. The audited statement of accounts is also submitted herewith. Signed on behalf of the Main Highways Board: W. L. Newniiam, Chairman.

5—D. 1.

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MAIN HIGHWAYS ACCOUNT. Statement showing Particulars of Net Expenditure on Construction, Renewals, Maintenance, &c., for the Year ended 31st March, 1942, and Total to Date.

18

I Improvement of Renewals of Main Highways. Maintenance, -Repairs, <£c., of Main Highways. Totals. Total since Total since Total since Total for Inception of Main Total for Total since Total for Inception of Main Total for Inception of Main Tear 1941-42. Highways Act, 1922, Year 1941-42. | 1/4/36 to 31/3/42. Year 1941-42. Highways Act, 1922, Year 1941-42. Highways Act, 1922, to 31/3/42. to 31/3/42. to 31/3/42. . Highway District — £ £ £ £ £ £ £ £ No. 1 .. .. .. 15,944 1,395,767 18,715 130,962 60,055 1,025,835 94,714 2,552,564 No. 2 .. .. .. .. 69,267 2,743,226 16,336 155,296 116,416 1,884,261 202,019 4,782,783 No. 3 .. .. .. .. 14,296 916,891 8,094 65,532 89,871 1,061,915 112,261 2,044,338 - No. 4 .. .. .. .. 11,202 636,852 2,333 80,684 56,953 798,035 70,488 1,515,571 No. 5 .. .. .. .. 26,351 813,326 2,093 66,428 67,099 1,176,806 95,543 2,056,560 No. 6 .. .. .. .. 16,429 792,082 1,463 22,416 65,081 798,619 82,973 1,613,117 No. 7 .. .. .. .. 7,024 908,832 1,957 29,741 45,421 737,221 54,402 1,675,794 No. "8 .. .. .. .. 102,141 965,269 6,757 32,144 64,562 778,518 173.460 1,775,931 No. 9 .. .. .. .. 21,074 1,446,700 3,871 38,041 66,052 862,282 90,997 2,347,023 No. 10 .. .. .. .. 2,893 423,343 7,870 59,507 31,907 690,267 42,670 1,173,117 Totals for North Island .. 286,621 11,042,288 69,489 680,751 663,417 9,813,759 1,019,527 j 21,536,798 No. 11 .. .. .. .. 27,230 1,009,381 1,301 14,876 ! 49,551 807,336 78,082 ! 1,831,593 No. 12 .. .. .. .. 33,677 1,033,033 5,783 89,531 68,188 1,276,346 107,648 2,398,910 No. 13 .. .. .. .. 11,589 330,691 4,754 4,946 28,178 363,713 j 44,521 699,350 No. 14 .. ... .. .. 23,831 849,648 134 5,865 27,016 554,049 50,981 1,409,562 No. 15 .. .. .. .. 19,663 524,443 Cr. 20 9,369 , 30,204 628,326 49,847 1,162,138 No. 16 .. .. .. .. 75,910 861,314 .. 12,362 31,563 504,144 107,473 1,380,820 No. 17 .. .. .. .. 13,131 831,882 23 11,863 27,822 458,467 40,976 1,302,212 No. 18 .. .. .. .. 21,254 996,951 9,547 37,715 38,510 588,991 69,311 1,623,657 Totals for South Island .. 226,285 | 6,440,343 j 21,522 186,527 301,032 5,181,372 | 548,839 11,808,242 Totals for Dominion .. .. j 512,906 17,482,631 j 91,011 867,278 j 964,449 ' 14,995,131 j 1,568,366 33,345,040 I I I i I *

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MAIN HIGHWAYS ACCOUNT— continued. Income and Expenditure Account for the Year ended 31st March, 1942, and Total to Date.

19

Total SJDC6 Tnf&l ajnpo EXPENDITURE. Y INCOME. Ye£r%'& 2 . I [ to 31/3/42. |[ j | tQ 31 / 3 / 42 . , ... . £ - £ : Loans raised under Main Highways Act, 1922 — £ £ Net expenditure on construction, renewals, maintenance, &c. (see separate 1,568,366 33,345,040 Stock, Debentures, and Treasury Bills issued— 8Ii8fu61II61lL) * i i i i ■ i J Administration— i At 1£ per cent, interest .. .. .. .. .. 2,495,000 /■ i j- i • At 3 per cent, interest .. .. .. .. .. .. 5 601 725 Administration expenses (including salaries, travelling-expenses, £ At 3£ per cent, interest .. .. 262,789 ' 453 684 office rents, printing, stationery, postages, and miscellaneous At 3£ per cent, interest .. .. .. 677 890 expenses) .. .. . ' - •• 122,240 .. 1,284,423 At 4 per cent, interest .. .. .. .. .. .. .. 1 442' 437 Fees and trave ling-expenses of members of the Main Highways At 4/ cent . interest ' 005 Board other than Government members 699 .. 20,874 j Securities redeemed, Loans Redemption Account .. 1 312 790 isce aneous expenses Consolidated Fund —Public Debt Repayment Account .. .. .. 55,720 Advertising, maps, rent of halls, traffic tallies, transport of ' samples, depreciation of furniture, &c. .. .. .. 148 .. 6,346 \ 262 789 12 181 ?<T7 Compassionate grants to widows and relatives of deceased j Receipte under seetion 15> Finance Act> 1023) from p ub , ic Workg Fund; empojees .. .. . .. .. .. 4,000 ' General Purposes Account (at 5 per cent, interest) .. .. .. . 1 226 000 Compensation under section 3, Public Works Amendment _ Revenue transferred from the Consolidated Fund 2,162,139 28,507 743 T7. ? ' '' '■ *• "• 1,015 Interest from investments .. .. .. .. .. .. 36 '218 444 pff. Teml t a S CeS . , , '' „ . " •• ' ■■ 9,887 Interest from local authorities on plant purchased on their behalf .. 2,736 37' 111 Grant to Transport Department towards Traffic inspection .. .. .. 42,906 Interest on advances to local authorities 2 046 42 055 Penological laboratory and other experimental work, Miscellaneous receipts .. 3,855 19 604 xpenses 0 .. .. .. .. .. Cr. 364 .. 13,887 Transfer from Consolidated Fund (section 14, Main Highways Act, 1922) .. 210,000 rr , , , ■ . . .. — ; Rent of and tolls from ferries .. .. .. .. .. .. o nsv Loan charges 0 3 a<^ 10n 122,905 1,383,338 I Temporary transfers from other accounts .. .. .. .. Dr. 150,000 Charges and expenses of raising loans, management charges of [ Consolidated Stock on account of Construction Fund, &c. .. 14,773 .. 87 603 Interest on amount appropriated out of Public Works Fund and paid into Main Highways Account Construction Fund .. 61,300 .. 735,600 Interest on loans, recoupment to Consolidated Fund (section 4, Finance Act, 1919) .. .. .. .. .. 330,954 .. 2,239,902 Transfer to reserve for redemption of main highway securities .. . . .. 1,252 130* Payment to local authorities in commutation of toll-gate charges (Finance Act, 1925, seetion 20) .. .. .. .. 1,501 .. 33 225 Payment to Wellington City Council in commutation of fees chargeable in respect of motor-vehicles using Hutt Road (Finance Act, 1927 (No. 2), section 33) .. .. .. 24,719 .. 329 130 i I Total loan charges .. .. .. :— 433,247 4,677,590 Subsidies, &c., in respect of other than main highways — Municipal Corporations (Municipal Corporations Act, 1933, section 71) . . .. .. .. .. .. 32,509 .. 341,610 County Councils and other local authorities (Finance Act, 1930, section 37) .. .. .. .. .. .. 179,380 .. 2,016,717 Subsidies to County Councils for rebate to ratepayers (Finance Act (No. 4), 1931, section 45) .. .. .. .. .. .. 253 893 Subsidy on rates levied on farming land (Finance Act (No. 3), 1934, section 28) .. .. .. .. .. Cr. 10 .. 364,242 Maintenance and construction of roads giving access to outlying areas (Finance Act (No. 3), 1931) .. .. .. .. . . 45 918 Total subsidies .. .. .. .. 211,879. 3,022,380 Balance, being excess of income over expenditure, carried to general - balance-sheet .. .. .. .. .. .. .. Or. 52,796 415,942 £2,283,601 £42,844,290 £2,283,601 £42,844,290 * Excludes £60,408 10s. 7d. interest credited. Note. —No charge for the cost of exchange on interest payments made in London is included in the accounts.

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J. W. Scott, A.8.A.N.Z., Chief Accountant, Public Works Department. W. L. Newnham, Chairman, Main Highways Board. I hereby certify that the Income and Expenditure Account and Balance-sheet have been duly examined and compared with the relative books and documents submitted for audit and correctly state the position as disclosed thereby, subject to the departmental notes enfaced thereon.— Cyril G. Collins, Controller and Auditor-General. By Authority: E. V. Paul, Government Printer, Wellington.— 1942.

MAIN HIGHWAYS ACCOUNT— continued. General Balance-sheet as at 31st March, 1942

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j j ij — 7 " I I LIABILITIES. Total. ASSETS. Total. i I _ L L £ £ £ £ Excess of income over expenditure — Cash in Public Account Balance at 31/3/41 468,738 c At i + " Less excess of expenditure over income for 1941-42 .. .. .. 52,796 Sundry debtors , "\ , , 1Q0 V 1 415,942 Advances to local authorities (Mam Highways Amendment Act, 192b, Sundry creditors .. .. .. •• •• •• •• 159,310 section 2) .. .. 'lint i " Interest accrued on loans •• 78,267 Motor-registration fees m hands of Postal Department .. 9,343 Reserves for redemption of securities .. .. .. •• •• 823 Interest due and accrued .. .. .. .. .. •• c 7 'flnq Buildings and land .. .. .. .. .. •• s/,ou» Stocks of materials, tools, &c. .. •• .. .. •• 155,176 Furniture, fittings, &c. — Expenditure to 31/3/42 .. .. .. .. .. ■ ■ 938 Less depreciation to 31/3/42 .. .. .. .. ■ • 701 Plant and equipment — For Main Highways Board — , Expenditure to 31/3/42.. .. .. .. .. •• 643,453 Less depreciation charged to works .. .. .. .. 470,056 — 173,397 Purchased for local authorities — Expenditure to 31/3/42 .. .. •• .. ■■ 351,363 Less repayments of principal .. .. .. .. 314,835 36,528 Amount transferred to Loans Redemption Account .. .. .. 2,851,973 Less amount utilized for redemption of securities .. .. .. 2,851,150 823 £654, 342 £654,342 Notes.— (a) No liability is included for interest on loans redeemed out of Public Debt Repayment Account. (6) The two funds, previously known as " Construction " and « Revenue," were amalgamated as from 1st April, 1936, and are now termed the " Main Highways Account," in accordance with section 3, Finance Act (No. 2), 1935.