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Details of the activities of the Department in the places under its control will be found below in the separate report on each place. The main subjects for remark are the improvements on the Milford Sound track, the letting of the contract for the hostel at Milford, and the early completion of the new Waitomo House. These are all referred to in the remarks on these resorts below.

Statement of Receipts and Expenditure at Main Resorts.

From this return it will be seen that Waikaremoana has joined the ranks of the places showing an excess of revenue over expenditure. Instead of a deficit of £418, it shows this year a surplus of nearly £500. This place will continue to show better returns yearly, and when the road is opened from Rotorua to the lake there should be a great influx of visitors to this most beautiful district. The Public Works Department have had a lot of men employed on this road, and I understand that there is not a great deal now to do. A telephone-line has been authorized from Lake House round the lake to the camp at Hoporuahine, and this will be available for conveying to the hostel information of the arrival of visitors overland from the Rotorua side. The following is a summary of the work of the Department at the different resorts under its control: — Rotorua. Revenue. —Omitting shillings and pence, the aggregate revenue for this year shows an increase of £1,373 over that of the previous year. There has been a substantial increase in revenue from electrical energy and water-supply. The passenger-booking business shows an increase of £1,397, but the refunds have also increased by £139. The revenue from the Round Trip shows a decrease of £335. This is largely due to the persistent advocacy, by the smaller transport concerns, of the Six Lake trip and the one day Wairakei trip, especially the latter. These two trips, having straight runs to the terminal points, present less organizational difficulties than does the Round Trip, which often involves these firms running empty cars to either Wairoa or Waimangu to bring back their passengers. Gardens. —No additional ground has been taken into cultivation during the year, so that the work has been confined to the usual maintenance. A good supply of vegetables, fruit, poultry, and eggs has been provided for the Sanatorium and King George V Hospital. The gardens and grounds have been maintained in their usual splendid order. Water-supply. —During the year sixty-four consumers were connected to the supply. 6,354 ft. of 4 in. cast-iron mains, fitted with the necessary fireplugs, were laid in several suburban streets. This will now enable the fire brigade to successfully deal with any outbreak of fire in these streets. The following quantities of galvanized piping were laid in connection with new connections and extensions: 2,495 ft. of \ in., 499 ft. of fin., 1,911 ft. of 1 in., 105 ft. of 2 in. The scheme for watering various bowling-greens, tennis-courts, and croquet-lawns in the Government Gardens has been reorganized, in pursuance of which some 400 ft. of 1 in. piping has been laid, with hose-taps at intervals. Drainage. —During the year seventeen new premises have been connected with sewers, and some 300 ft. of 4 in. piping has been laid. All maintenance work in connection with both water and drainage have received necessary attention. General. —The large central ventilator in the Main Bath building has been entirely renewed. Two pipe-lines have been laid at Wairoa (Lake Tarawera) from the top of the hill to the wharves, for conveyance of petrol and fuel oil for supply of launches. Two break-pressure tanks, of 120 gallons and 80 gallons respectively, have been fixed at an intermediate point, and two gauge filling-tanks on stands, from whence the petrol and fuel oil can be run into tanks aboard the launches, thus obviating the laborious system hitherto obtaining of carrying the oil in cases or tins from the top of the hill. A new Wilton furnace has been fitted to the steam boiler at the laundry, Main Bath building, which enables a low-grade and cheaper coal to be used than formerly. A superheating outfit has been made

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Year 1927-28. Year 1926-27. H ° | 8 H O "S g Resort. aj x aj •« S& 1 I ° 3 -2 2 s = °|i s a js S 5 .-s _s -5 <» 3 ft •« ft | b| § ! o g ft I § »2»p o $ ° J5 o 3 <v $ o ® ® oj i> S § X ft*i g o 3 o ft M &Q3 o o 3 P3 W H H S3 td 63 H £ | £ £ £ £ £ £ £ TeAroha .. .. .. 1,344 3,147 1,803 .. 1,445 3,565 2,120 Rotorua .. .. .. 32,992 ! 33,712 720 .. 31,338 33,049 1,711 Rotorua Acclimatization District .. 1,820 1,062 .. 758 2,101 1,227 .. 874 Waitomo Caves .. .. 10,224 5,611 .. 4,613 9,901 4,487 .. 5,414 Lake House, Waikaremoana .. 2,424 1,933 .. 491 1,588 2,006 418 Queenstown .. .. .. 276 804 528 .. 330 915 585 Glade House and Milford Track '.. 3,443 5,449 2,006 .. 3,635 6,223 2,588 Morere Hot Springs . . .. 564 464 . . 100 464 303 .. 161 Passenger-booking Bureaux .. 9,778 10,216 438 .. 8,287 10,400 2,113