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Replacements in the existing shelter-belts have absorbed the following young trees : 3,560 Pinus insignis, 1,150 macrocarpas, 300 poplars, 50 lawsonianas, 300 privets ; all of the trees being raised in the institutional nursery. Additional poultry accommodation has been erected from the old office building-material, and is capable of housing an additional 800 laying-hens. This will enable the poultry industry to be considerably extended. The egg-yield from our present stocks has been satisfactory, and the industry is in credit after paying for fodder, labour, supervision, and also interest and depreciation on buildings and plant. At this stage this must be considered very satisfactory. The exercise-yards generally are about complete. Additional yard accommodation and conveniences are being provided for unconvicted prisoners. The various paths and the yard in front of the kitchen block have been made permanent by laying down in tar asphalt. Additional domestic facilities have been provided by the completion of a building for use as a butcher's shop, flour-store, and coal and firewood store, thus allowing for handling with a minimum of inconvenience. A new roof has also been placed on the Farm Manager's residence. The old office building has been demolished and the material used for the erection of poultry-houses. The old wool-shed was removed to a new site, and made up-to-date for efficient handling, shearing, and drafting of sheep, with sufficient holding accommodation for bad-weather conditions. The spiritual welfare of the prisoners has again been well looked after by the ministers of the various religious denominations. The evening Mission service has been continued periodically by Mr. and Mrs. Smith, who have again extended practical sympathy to a number of prisoners after release by the provision of a home and employment for the more likely cases. The social welfare of the men has been well looked after, as in previous years, especially by the workers' educational classes held weekly during the winter months, periodical lectures by Rotary Club members, and a monthly concert arranged by Mrs. Holmes. In this connection high-class vocal and instrumental entertainments have been provided. The educational side of the institution has been well maintained, as covered by the report of Mr. W. O. Gilmour, institutional Schoolmaster. Frequent visits are still being made by the Rev. P. Revell, Aid Society representative, also by Salvation Army officers, and both give help and advice to prisoners on discharge, and other assistance has been again rendered in needy cases. Our thanks have been again conveyed to Mr. and Mrs. Smith, of the Richmond Mission, for their special carton of Christmas cheer, also to Mr. Paynter, the Rev. F. R. Rawle, and other friends for their supply of Christmas cheer, sufficient for all the prisoners. The farming section has been worked to advantage during the year, with satisfactory yields of cereals, mangels, turnips, and hay. In the sheep section lambing during the year was 134 per cent., and the wool-clip averaged 13 lb. per head. On various occasions Paparua spring lambs topped the Addington Market, and are readily sought by fat-stock buyers. The pig industry has shown some improvement over that of last year, in that the fertility of the stock has been considerably higher and the prices have shown some improvement. Paddock production accounts showing the working of each paddock on the farm have again been prepared for the year. This work is now becoming of interest and benefit to the Farm Manager and his staff ; also, over a number of years it is of financial benefit to know exactly which crop industries are the more or less profitable. It is particularly noticeable from the tabulated results of the last four or five years that lucerne, once established as a grazing-unit, is the king of fodders, and shows by far the greatest margin of grazing profit. The Farm Manager has obtained very good results from the farming section, and the condition generally of the various areas is very good. [ am pleased to be able to report that the officers generally have performed their duties satisfactorily, and have maintained a proper standard of discipline and industry. Schoolmaster's Report. The work proceeded smoothly throughout the year ; interest never waned, and the progress made was most satisfactory. Most of the class had reached Standard IV in the primary schools and were glad of the chance to make further progress. The course of lessons consisted of English (including literature, grammar and composition, business correspondence, and spelling), geography, and arithmetic. Justice could not be done to a wider course in the time allotted to the class. Once a month a debate was held, and proved a most valuable aid for developing oral expression. The new schoolroom with its up-to-date lighting and heating systems and single desks greatly assisted the work. There are not many schools where the pupils have their lessons under better conditions. Waikune Prison (Road Contracting Camp), Erua. (Officer in Charge, Mr. H. W. Glynn.) There were 66 males in custody at Waikune Prison at the beginning of the year ; 92 were received from other institutions, 45 were discharged or released by the Prisons Board, 20 transferred to other prison institutions, 1 absconded and has not been recaptured, leaving a total of 92 prisoners in custody at this prison at the end of the year. The general health of the prisoners has been quite satisfactory. We have, of course, had cases of minor ailments —colds, influenza, &c.—but it is gratifying to report that we had no cases calling for hospital treatment. The conduct of the prisoners has, with few exceptions, been satisfactory. The number of offences dealt with during 1928 was numerically smaller than those dealt with in 1927, the most serious being those relating to escaping from legal custody. In all, three men escaped during the year. We were