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completed, and the drainage of approximately 700 acres of land has also been completed. The main dewatering drain for the southern pumped area is in hand, and good progress is being made with the contour channel stop-banks. A summary of work done includes 82 chains of stop-banks, 148 chains of main drains, 632 chains of subsidiary drains, 3,020 chains of lateral drains, 352 ft. of pipe culverts. From a hundred to a hundred and fifty registered married unemployed men have been engaged during the year. Taumarunui Distbict. Pururu Block. —Fourteen sections are being developed. Three hundred and fourteen acres have been put into permanent pasture and 89 acres in crops. Two miles of road-formation were completed and 50 chains metalled ; 10 m. 70 ch. of road, boundary, and subdivision fences, and also three cow-bails were erected. Ngatamahine Block. —Eleven farm cottages, three cow-bails, and two manure-sheds were erected. Single men have carried out 158 chains of road-formation, of which 146 chains have been metalled ; 327 chains of fencing erected. The areas on which cultivation work has been carried out total as follows : 197 acres cleared and stumped, 101 acres ploughed, 111 acres sown in grass, &c. Eleven thousand four hundred battens have been split for fences by the prospective settlers. Waitanguru Block. —Seven cottages have now been erected for prospective settlers and two cow-sheds erected. Forty-four chains of road-formation were carried out. Five hundred and fortyeight chains of road fencing, 327 chains of boundary subdivision, and repairs to fences carried out. Cleared and stumped 105 acres, 69| chains of drains. In addition, 124 acres have been cleared for farmers, and also 31 chains of fencing erected. A lime-crushing plant has been set up, and is in operation, for the purpose of supplying agricultural lime to this block and to adjoining settlers. Metcalfe's Estate.—Settlement work is still being carried out on this 335-acre block. The settlers have erected 336 chains of fencing ; 251 chains of drains cut; 155 acres have been cleared and stumped ; 115 acres grassed; and 32 chains of road-formation completed. One thousand five hundred trees have been planted for shelter-belts. Lee's Property. —Development-work has been continued. Work carried out is as follows : 439 chains of fencing completed ; 76 acres ploughed and sown in grass ; 66 chains of drains cut; 161 acres scrub-cutting, stumping, and clearing completed; 54 acres sown in crops ; 63 acres of pasture top-dressed ; and 138 acres treated for ragwort. Stratford District. Ohakune Land-clearing. —Heavy stumping and logging operations have been continued to prepare Crown lands adjoining Ohakune Station Yard for small-farm operations. No. 5 Scheme labour on full-time employment is used. Two hundred and six acres were stumped and logged up, and 57 chains of access road were formed. Raetihi Land-clearing. —Similar work is being carried out on Crown lands some 3 miles to the east of Raetihi. During the year, 276 acres were stumped and logged up, and in addition 1J miles of drains were excavated. Dunedin District. Papanui Small-farm, Settlement. —An unemployment-relief camp was established during the year for further development-work in this settlement. One hundred and eighteen chains of road were formed and metalled ; 540 chains of boundary fences were erected, and 90 acres of bush felled.

HYDRO-ELECTRIC DEVELOPMENT. Arapuni Scheme. Late in August, 1934, a commencement was made with the work of preparing for the extension of the Arapuni Power-house, the programme being to complete the power-house for ultimate development, and to install units Nos. 7 and 8, for which penstock tunnels have already been built. The first work was the assembling and installing of the necessary construction services. A 4-ton overhead cableway was erected over the site of the proposed power-house extension, being ready for operation late in September, when excavation work on the site commenced. Excavation work at the site of the proposed outdoor-station extension proceeded simultaneously to completion, 2,260 cubic yards of excavation being handled. The power-house excavation proceeded oil three shifts, and to the end of June, 1935, approximately 27,000 cubic yards of rock had been broken out and removed. A needle dam of heavy steel beams, with timber waterproof face on concrete piers was erected across the existing tail-race at the south end of the present power-house. Powerful dewatering pumps were then installed above this dam and after the needle dam had been fairly effectively sealed, waterlevel at the site of the new tail-race was lowered at the end of March to 2 ft. below the required tailrace floor-level. Excavation for the tail-race was then begun, and at the end of June 6,400 cubic yards had been removed. A complete concreting plant had in the meantime been installed, and was first put into operation during March, pouring the first part of the power-house foundations, and by the end of June further small quantities of concrete had been placed as progress of excavation allowed.

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