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Mental Hospitals. The principal expenditure during the past financial year was in connection with the main block of the '"new Mental Hospital at Tokanui, which was completed under contract in|February|last. Nine cottages have been built for the staff, and temporary accommodation provided for patients and attendants. A substantial vote is proposed to continue work in connection with this Hospital during the current year. A new auxiliary building at Porirua was completed and equipped ; additions made to the Sunnyside institution, and alterations to provide additional accommodation were carried out at the Simla auxiliary at Seacliff. An additional block of buildings at Waitati was almost completed. Since the close of the financial year two contracts have been let for auxiliary buildings at Auckland Mental Hospital, for which a vote of £29,000 is provided, and items to cover necessary works at Porirua, Sunnyside, Waitati, Seacliff, and Nelson also appear on the estimates. Agriculture. Further expenditure is contemplated this year to provide up-to-date buildings and equipment for the experimental farms, to make these institutions object-lessons in all that makes for effective working and economy. When the farms were started there was an almost entire absence of modern equipment, and improvements are being effected generally, the expenditure being spread over a number of years. An experimental farm is being established at Mamaku, on which investigations into the cause of bush sickness in cattle may be continued. At Ruakura drainage operations which have materially increased the fertility of the land are to be continued. A noteworthy increase in the numbers of purebred live-stock imported involves extensions of the accommodation at some of the quarantine stations. At one or two places where resident officers find it practically impossible to rent suitable houses the Department is providing residences at moderate cost. Hospitals. Under the heading " Public Health, Hospitals, and Charitable Institutions," there was an expenditure last year of £9,126 out of the Public Works Fund. On the current year's estimates provision is made for £25,530, of which it is anticipated that £10,000 will come to charge before the 31st March- next. Last year's expenditure included hospital accommodation at Rotorua, and an up-to-date Maternity Hospital at Wellington. It is proposed to provide similar institutions at Auckland and Christchurch, and the largest items on the estimates relate to these respective proposals. School Buildings. The expenditure during the past year was £105,000, of which nearly £83,000 was paid to the respective governing bodies for the erection of schools, additions to existing buildings, equipment and sites for public schools, teachers' residences, technical and secondary schools, and University colleges. The purchase of the Stoke Industrial School property was completed and two residences provided. An addition was made to the day school at Weraroa Training Farm, and a gymnasium and cottage provided at Burnham Industrial School. The Sumner School for the Deaf was enlarged and a workshop built. New Native schools were established at Taemaro (Bay of Islands), Waiorongomai, and Horoera (East Coast). The vote proposed for the current year includes a substantial grant for a new site and building for the Auckland University College, as well as the usual grants for buildings and sites to the several Education Boards, Technical and Secondary Schools and University Colleges, and also provision for further buildings required in connection with the School for the Deaf, the Otekaike Home, and the different Native and Industrial Schools. Workers' Dwellings. The expenditure under this head during the past year amounted to £46,455 — an appreciable increase over that of the preceding year. The demand for workers' dwellings under the conditions provided in the Act is increasing, and for the current year an authorization of £75,000 is proposed for the acquisition of land, roadformation on sites, and erection of buildings. On account of this sum a vote of £65,000 is asked for for the requirements of the current year.

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