H.—2.

District Manager, Rotorua. Bearing in mind that during the last few years very successful results have been experienced together with progressive increases in revenue, culminating in a record during the year ended 31st March, 1939, the figures for the year under review must be regarded as very satisfactory. It is only natural, too, that, dependent as Rotorua is to such a large extent on the tourist traffic, the petrol-restrictions would have an effect upon returns. The largest loss is shown in the passenger-booking branch. Whilst a certain amount of local business is obtained, experience has proved that the bulk of the booking business is from overseas visitors, and that when the Auckland Bureau, for instance, feels the effect of a slackening in overseas traffic it is also reflected in this office. It is regretted that it was not possible to maintain the standard set over the last few years in regard to baths fees, but for the reasons above submitted it is otherwise felt that the baths would have held their own. The Massage and Special Treatment Department, although recording a reduction m revenue, has nevertheless been very busy, and any loss in out-patients has been compensated by the patients from the Sanatorium, which has been patronized practically to the full extent of its capacity throughout the year. During the year the work of effecting the urgent constructional repair and renovations to the main bath building was completed by the Public Works Department. Fluctuations in the temperature of the Priest Spring caused some concern during the year. Fortunately the spring regained its temperature, and has since given entire satisfaction. However, as a standby and with a view to obviating any difficulty in the future should a similar occurrence be experienced, a very hot spring similar to the Priest, and of equal therapeutic value, was opened up at the rear of the main bathhouse. A pumping-station was erected over the spring, so that, if necessary, merely by the transfer of the pumping-plant, and connecting it to the existing reticulation in the building, the spring can be brought into operation without any undue delay. Small decreases are recorded in the bowls and tennis fees, but it is very pleasing to report a further increase in the revenue from the nine-hole golf-course amounting to 20 per cent, more than the previous year. This is very gratifying, and is better than was ever anticipated from a comparatively small course. . . The playing-conditions of the tennis and croquet courts have been maintained, but it is regretted that the bowling-greens have not upheld their usual reputation There have, unfortunately, been contributing factors over which the Department has had no control and which have been largely responsible for the lower standard of the playing surface. It is anticipated that, given normal conditions, the greens will be rehabilitated in public favour next season. In the electrical section reductions in tariff were brought into effect on Ist January, 1939. It is gratifying to state that, notwithstanding the reductions in charges, the receipts still show an increase over the previous year. The Qkere hydro-electric plant was closed down on 30th September, 1939. The water and drainage services show an increase in revenue, due no doubt to the continued growth of the town. A general improvement to the system is anticipated as a result of the erection of a reservoir of 500,000 gallons capacity, which is at present under way. Electric. —During the year extensions to lines have been made as follows, the most important being the reticulation of the Ngakuru and Horahora districts (!) Ngakuru and Horahora : 30 miles. 6,600 volt and 230/400 volt. (2) Hamurana : 6 miles. 6,600 volt and 230/400 volt. (3) Valley Road Extension : 1 mile 40 chains. 6,600 volt and 230/400 volt. The Ngakuru and Horahora extension is the biggest handled to date. In addition to the above, extensions and reconstruction have been carried out on existing lines to meet the demands of consumers : — One 150 kVA. transformer and attendant lines, Pererika Street. One 150 kVA. transformer and attendant lines, Ti Street. One 200 kVA. transformer supply to State mill. One 75 kVA. transformer and attendant lines, Haupapa Street. One 50 kVA. transformer and attendant lines, Ngongotaha. Work on the changeover has been continued during the year. The majority of the installations remaining on 110 volt are not wired in accordance with present-day requirements, and have to be brought up to standard before they can operate on the higher voltage. During the year 130 installations have been changed over. Regular maintenance has been carried out on all distribution lines. The following table sets out the units generated and purchased for the year, and the new load connected :— Purchased from Generated Total. Public Works 'Department. at Okcre. 1939-40 .. .. .. 6,681,937 112,061 6,793,998 1938-39 .. .. .. 5,429,159 208,750 5,637,909 Total increase for year .. .. •• •• 1,156,089

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