D.—l.

XXVIII

Electric-power Organizations. The work involved in the development of the electric-power resources of the Dominion is outgrowing the present organization as a hranch of the Public Works Department, and a Special Board or Commissioner will be necessary in the early future to deal with the commercial, financial, and electrical and engineering problems involved. Owing to the financial stringency the appointment of this special Board has been postponed as long as possible, but will be necessary in the early future, and a careful note is being kept of the development of the corresponding organizations in Great Britain, Canada, and Victoria, where the work is undertaken by Electricity Commissioners ; in Tasmania, where a separate Hydro-electric Department has been set up ; and in New South Wales, where the organization is carried out by a branch of the Public Works Department; and the local proposals will be based on those which are proving most efficient elsewhere. STAFF. The work of the whole of the Staff during the past year' is worthy of the very highest commendation, and I desire to take this opportunity of expressing to all those officers my thanks for their untiring energy and hearty co-operation in carrying out successfully the many and varied functions of the Department. It is with sincere regret that I have to record the loss by accident of a promising young Assistant Engineer, Mr. 8,. W. Miller, who unfortunately lost his life through being gassed while endeavouring to rescue some of his men similarly affected in one of the tunnels being constructed in connection with the Mangahao hydro-electric scheme. CONCLUSION. In conclusion, I feel confident that the judgment of the country will be that substantial results have been achieved. The money at my disposal has been expended in accordance with my ideas of what is in the best interests of New Zealand as a whole. Under the direction of a thoroughly qualified staff, and with a due regard to the necessity of obtaining, in increased production due to better communications, an adequate return for the expenditure.