H.—3l.

No permanent office accommodation has yet been provided, and in all probability additional infectious-disease accommodation will be required. The total loan expenditure to date is approximately £49,000. A large amounl of salvaged material and equipment was used in the reconstruction, the cost of which is not included in the above figure. Other building activities during the year included— (1) Remodelling kitchen at Auckland Hospital, resulting in a well-equipped modern hospital. (2) Strengthening of buildings a 1 Wanganui Hospital. The earthquake in 1931 disclosed several weak features in the const ruci ion and during the year the necessary strengthening was completed. (3) An up-to-date hot-water service was installed in Dunedin Hospital. (I) The strengthening of the Nurses' Home at Nelson was completed. (5) New laundry and boiler-house at New Plymouth Hospital was o pleted, and is now in operation. (6) Completion of Nurses' Home at Christchurch Hospital. Earthquake Damage. —ln the earthquake which occurred in the Wairoa Gisborne area in September, 1932, considerable damage was done to hospital buildings and equipment, both at Wairoa and Gisborne; but fortunately there was no loss of life. The earthquake revealed certain weaknesses in the construction of the wards at Gisborne Hospital, and plans and specifications have been prepared for the necessary strengthening-work. The ward most seriously damaged has already been repaired and strengthened. Wairoa Hospital, being a wooden building, escaped more lightly, and the hospital activities were never interrupted. The new Nurses' Home at Wairoa, which was being built to replace the one destroyed in the previous earthquake, also suffered some damage. Transfer of Departmental Institutions. —Instructions were issued during the year that all departmental institutions, with the exception of Queen Mary Hospital at Hanmer, were to be transferred to the various Hospital Boards. Negotiations were therefore opened, with the result that Otaki Sanatorium has been transferred to the Palmerston North Hospital Board, and negotiations are practically complete concerning the transfer of Pukeora Sanatorium, Wanganui St. Helens Hospital. and Gisborne Townley Hospital to the Waipawa. Wanganui, and Cook Hospital Boards respectively. Hospital Inspection. During the year the technical officers of the Department have continued to pay special attention to the engineering problems of the various hospitals, indicating where economy could be effected without loss of efficiency. The question of economy in the use of fuel, steam, and hot water is fully discussed, the various engineers showing a very keen interest in these several main Dangeeous Drugs. The necessity for the proper storage of these and the necessity for keeping accurate records of their consumption has been stressed with the various Medical Superintendents. In all instances complete co-operation was secured. Dkpartmental Institutions. The following are extracts from the annual reports of the various institutions (with the exception of the St. Helens Hospitals). Queen Mary Hospital, Hanmer (Medical Superintendent, Dr. C. Chisholm). " Every effort has been made to maintain the essential efficiency of the institution, and at the same time to economize in all possible directions. Economies have been carried out during the year by reduction of staff, greatest care of stores and material, and no new work has been undertaken. One noteworthy saving was achieved by burning wood from the Forestry Department's plantations in place of coal in the boilerhouse. " The effect of the economic state of the country is reflected very clearly in the Hospital, by the inability of patients to accept treatment when recommended, or by their being unable to remain long enough under treatment, to gain the optimum amount of benefit, owing to their financial difficulties. The effect is also seen in a certain number of patients presenting for admission, whose nervous condition can be traced very definitely to financial stress. It appears likely that these will increase. In the early stages of the economic depression this was not seen. It appeared that the struggle and effort were keeping people out of hospital, but apparently long-continued stress is now causing very definite nervous breakdown. The patients appear to be those of middle age, and onwards. The younger people do not appear to be suffering so much nervously from this stress, as those who have achieved some competence, and now see their savings disappearing. I think it is quite likely that this class of patient will increase, even after the present economic stress has passed. It so frequently occurs that a nervous condition appears after stress is removed, rather than during the time of stress. " Dental Service : Mr. Arthur Suckling, Honorary Dental Surgeon, has paid periodic visits to the institution, and his work and assistance to us are invaluable. " Red Cross : The Red Cross continues to maintain the recreation-rooms and provide interests for the male patients. Their work is of great value both to the patients and the institution generally. At the present moment there is some reason to believe that the Red Cross may cease activities here, but the matter is still under consideration. I should be very sorry if their useful work should cease."

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