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Buildings. These consist of Engineer's cottage and twelve cottages and huts for workmen, office building, machine-shop, blacksmith's shop, store-sheds, &c. These are kept in good order and condition. All men occupying quarters are required to pay rent for same. Workshops. Practically all the repair work for the six dredges and general machinery has been done in thg workshop and smithy at Thornton, and a very creditable amount of work has been put through in this connection, with a corresponding saving in time and cost. Rolling-stock. The Thornycroft lorry has been continuously employed in running coal and benzine supplies to the dredges, and in general cartage of timber and supplies throughout the works. With the improvement in roads the Department is now able to use this lorry for the bulk of its cartage. Plant and Machinery. One Priestman grab dredger was transferred early in the period, and the plant now consists of three Priestman grab dredges, one Bay City walking dipper, and two Monighan walking drag-line excavators, four coal-punts, three oil-launches, one towing-barge, and seven small boats and punts. Summary of Work done. M. Ch. Cub. Yd. New drains .. .. .. . . .. .. 150 4,700 Widening and deeping .. .. .. .. .. 940 13,160 Cleaning drains .. .. .. .. .. .. 72 0 Road-formation .. .. .. .. .. .. 430 Fencing . . . . . . . . . . .. 340 Stop-banks (new) .. .. .. .. .. ..10 Stop-banks (repairs) . . . . .. .. ..40 Spoil dredge .. .. .. .. .. ..24 79 626,762 Levels taken .. .. .. .. .. .. 52 0 Survey traverses .. .. .. .. .. .. 22 40 Pile bridges, 9 ; sill bridges, 10 ; flood-gates, 2. Proposed Works. Completion of Tarawera River stop-banks by No. 9 dredge ; dredging Tumurau drain by No. 8 dredge ; completion of Waioho Stream and White-pine Bush Road and stop-banks by No. 18 dredge ; general maintenance, and minor construction works. Works Expenditure : General. The total amount of expenditure recorded in the books for the year was £29,758. Of this amount £11,849 represents day-labour (including dredge crews) and £5,128 payment for piecework contracts. The sum of £20,845 was paid out of Whakatane Imprest Account. The local headquarters are at Thornton, where the subsidiary books are kept. All payments of wages and supplies, &c., are made by the controlling office in Auckland, where the financial record books are kept. The sum of £255 9s. lOd. was received during the year on account of miscellaneous revenue. The officer in charge is Mr. R. L. Innis, Acting Engineer, who has carried out his many duties in a very able and efficient manner. 1 have, &c., 0. IST. Campbell, Chief Drainage Engineer. The Under-Secretary for Lands, Wellington.