D.—l.

Health and Hospital Institution,?. Expenditure approximating £48,000 is contemplated at Queen Mary Hospital, Hanmer Springs, in providing a new hospital for male patients and a new massage block and bathhouse. Improvements in the water-supply for the hospital and township are also being undertaken. Provision is made for the payment of further instalment on account of the Government grant of £20,000 towards the cost of the new Obstetric Hospital at Dunedin. The erection of a new training clinic for probationer dental nurses at Wellington is being undertaken as early as possible. A site has been selected and plans are in the course of preparation. It is hoped to have the actual construction well advanced within the year and final provision made accordingly. The net expenditure on health and hospital institutions for the vear was £2,191. Education. * The net expenditure of capital funds on the erection of school buildings, additions, and teachers' residences, and the purchase of sites, amounted to £131,457 for the year. This sum includes £10,033 provided by the Consolidated Fund to meet the cost of works under £200. The expenditure was reduced by credits-in-aid amounting to £48,547. This figure includes a substantial portion of the proceeds from the sale to the Fire Board of the Clyde Quay School site, Wellington, and also a contribution from the Unemployment Board towards the cost of erecting school buildings. The following table shows for the last three years the capital expenditure on new school buildings, additions, sites, and teachers' residences : — 1933-34. 1934-35. 1935-36. £ £ £ Public schools .. .. .. ..57,664 35,105 87,908 Secondary schools .. .. .. 2,568 14,679 23,516 Technical schools .. .. .. .. 1,504 12,851 59,350 Training colleges .. . . .. . . .. .. 610 Native schools .. .. .. .. 2,698 5,419 8,399 Child-welfare institutions . . . . . . . . . . 221 Grand total .. .. .. ..64,434 68,054 180,004 Less credits-in-aid .. .. .. 7,778 10,894 48,547 £56,656 £57,160 £131,457 ESTABLISHMENT OF AERODROMES. During the year considerable expansion has taken place in this side of my Department's activities, and a special branch has been established to work in conjunction with the Civil Aviation and Air Services Branches of the Defence Department. In consequence of the quickened public interest and demand for air-transport facilities and the development of the Air Force stations at Hobsonville and Wigram, much more rapid development of aerodromes and emergency landing-fields has been proceeded with than was originally contemplated. During the year air services were placed in operation on the Main Air Trunk route between Palmerston North and Dunedin and across Cook Strait from Wellington to Blenheim and Nelson, in addition to the air services already in operation between Gisborne and Napier, and on the West Coast of the South Island. Further extensions to these services are contemplated in the near future.

XXIII