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Output. —The total of all excavations for the year amounted to 176,589 cubic yards, making the total of all excavations to date 384,588 cubic yards. Surveys.—Detail surveys of the canal in Block IV, Purua Survey District, have been completed, and the location of the waterway decided upon. Surveys of the inland swamp areas are being undertaken as opportunity offers, and considerable data is now available in connection with the areas in Blocks XIV and XV, Hukerenui Survey District, and Block IV, Purua Survey District. These surveys demonstrate very clearly the tortuous courses of the existing creeks and the general irregularity of the surface of the various swamp areas. These conditions call for extensive investigation before the various outfalls can be definitely located, The necessary surveys are well in hand, and will be completed before the main river-works are out of hand. Plant.—No additions to plant were made during the year. Despite the heavy nature of the excavations the various machines continue to give good service, and every effort is made to keep all plant in first-class order. A stock of likely spare parts is always on hand, and the smithy and fittingshops are well equipped to handle all ordinary repair jobs. The drilling and compressor plants have been continuously engaged on heavy duty. These are well maintained and given a thorough overhaul periodically, with the result that delays are reduced to a minimum. Buildings. —No additions have been made to the buildings, which are all of a temporary nature. A small rent charge is made for all huts occupied by workmen, the amount thus received during the year being £131 lis. 2d. Stores. —A complete system of stores record is kept, and monthly checks made regarding the issue of motor-spirit, explosives, coal, &c. Works Expenditure. —The total expenditure during the period under review was £20,760, and of this amount £10,121 was paid in wages. The local officer in charge is Mr. V. C. Bosselman, B.E. Waihi Drainage Aeea (22,720 Ackes), Tauranga County. The scheme of works as laid out for this area was practically completed at the close of the period. Future charges against the area will be for minor construction work and general maintenance of existing works. The area has now reached a sufficient state of development to allow of a reliable estimate being made of the value of the improvements effected. The settled areas of the swamp proper are progressing well, and an increasing benefit to the higher private lands is apparent. The areas set aside for flax-growing are rapidly proving themselves remarkably well adapted for this purpose, and it is hoped at an early date to lease further areas for cultivation and milling. The rain-gauge at Pongakawa showed that a total of 49-52 in. of rain fell during the period, the wettest month being July, with a fall of 10-90 in., and the driest December, with a fall of 0-75 in. Kaikohopu Stream. —The widening and deepening of this channel was continued throughout the period, and at the end of the year was completed as far as the main road. As a result greatly improved outlets have been provided for the several drains in the Waewaetutuki Block, and the danger of overflow in the channel itself has been considerably lessened. The continuation of this work to the railway should be put in hand when a suitable machine is available. This latter work is essential to the lands in the vicinity, as it is absolutely impossible to provide satisfactory drainage by a hand-dug channel. Pongakawa Stream.—Further widening and deepening of this stream was carried out with an American steel dredge, covering a distance of 81 chains. This completed the scheme for straightening and improving the Pongakawa Stream between the main road and the estuary. Straightening and improvement by hand-work was carried out for a distance of approximately a mile southwards from the railway. The area of swamp land in this latter area is very limited, being really a small valley in between the hills. The dredging of a channel would have been out of the question owing to the excessive cost per acre, and, as stated above, improvements have been carried out by hand for about a mile. The swamp on each side of the stream is peaty, and the area is being watched very closely to see whether the continuance of the improvements to the stream is justified. Leasehold Block East of Pongakawa Stream. —The dredging of a 30 ft. canal through the middle of this block was completed early in the period. A shallow channel with a stop-bank on either side was dredged from the Pukehina Canal to the sandhills along the line of the boundary between Sections A 2 and A3. Plant then deepened the northern end of the Pukehina Canal, completing the dredging in this block. Dredges.—Priestman No. 5 was employed throughout the year in deepening and widening the Kaikokopu Stream. Progress was rendered somewhat slow on account of the amount of heavy timber encountered and the high banks which had to be lowered to allow dredge to pass. Altogether plant covered a distance of 128 chains and removed a total of 70,800 cublic yards of spoil. No. 25 American steel dredge was in commission for only four months of the total period, carrying out final widening and deeping of the Pongakawa Stream. Plant was then thoroughly overhauled and laid up, having completed her schedule of work on the area. The distance covered during the period worked was 71 chains, and 39,013 cubic yards of material was excavated. No. 26 American steel dredge completed the dredging and improvement of the Pukehina Canal in the Leasehold Block and the erection of the stop-banks from this canal to the sandhills. This completed the work of this plant on the area, and after overhaul and painting she was laid up in the Pongakawa Stream. During the nine months worked a distance of 119 chains was covered and 73,031 cubic yards of spoil lifted.

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