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By maintaining a close liaison with the Allied authorities in the Pacific it has been possible for New Zealand to purchase considerable quantities of construction plant and equipment no longer required in that theatre and which when reconditioned will be most useful as replacement for some of the equipment which was released by this Dominion in the early stages of the war. No less than 555 items of construction plant, valued at over £500,000, were sent overseas to the Middle East, India, the Far East, Fiji, and the Pacific generally. A. very large proportion of this machinery, of course, has been lost to the Department. Although the construction phase of defence works has passed, the services of my Department are still being utilized to a considerable degree in connection with the release of land which has been occupied by the Forces, the disposal of surplus war assets, and the settlement of legitimate claims arising from the use of land for various defence purposes throughout the Dominion. Assistance is being given regularly to the War Assets Realization Board in regard to the demolition and disposal of buildings and materials according to instructions issued from time to time by the Board. HOUSING During the past year a tremendous demand has been made of the building industry, and this demand has increased progressively during recent months. Over the last quarter applications for permits to build houses, both by private and public enterprise, have been received at the rate of approximately 900 a month, nearly 3,000 in excess of the record year, 1939. It must be borne in mind that the great bulk of our man-power of the age group twenty to thirtyfive years is still in the Armed Services, and until these men can be released and building and allied industries can be rehabilitated serious difficulties in supply are likely to occur. Obviously, therefore, the erection of houses is limited only by the availability of materials and man-power. Even when released ex-servicemen do become available it naturally takes some considerable time for them to re-adjust themselves. One of the main bottlenecks is timber supplies, and in practice it has been found that many returned servicemen are reluctant to go back into the bush. The inability of overseas countries to supply manufactured and raw materials essential to the servicing of houses also creates difficulties. On these countries we have to depend for such materials as galvanized iron, steel, non-ferrous metals, water-pipes, soil pipes, electrical materials, glass, paint ingredients, nail wire, &c., a shortage of any one of which creates serious repercussions. During the year 1,969 State houses were completed, and at the close of the year a further 3,442 houses were under construction in various parts of the Dominion. In rural areas 467 temporary and 82 permanent dwellings were in hand for farmers who had applied for rural accommodation through the Primary Production Councils. In addition, contracts for 130 houses had been arranged for returned servicemen placed on farms through the Eehabilitation Department, and these also included the provision of milking-sheds, implement-sheds, wool-sheds, and piggeries. MAIN HIGHWAYS Owing to several contributing factors it has not yet been possible to restore highways surfaces back to the high standard that existed prior to the outbreak of hostilities, but a considerable amount of resealing work is planned for the coming season, and every effort will be made to have this important work carried out. There has been a small increase in the length of bridges renewed during the year as compared with the previous year, but a comprehensive programme lies ahead and work will be put in hand and completed just as fast as skilled labour and materials become available. Plans are in course of preparation covering the improvement of several lengths of State highways adjacent to the larger centres of population, and these works will receive consideration in the post-war programme. SOIL CONSERVATION AND RIVER CONTROL During the year under review the election of members to the six Catchment Boards already constituted was held in conjunction with the 1944 local authority elections. These Boards are now devoting themselves to the immediate problems of administrative organization and of investigating the needs of their districts preparatory to formulating proposals for submission to the Soil Conservation and Rivers Control Council. I have emphasized on many occasions the magnitude of the task which confronts this Dominon if we are to arrest the deterioration of land through ill-conceived use and the continued exposure of areas to the destructive elements of nature. Although the problem is urgent it is very important to establish the ultimate soundness and value of remedial schemes so that once a plan has been adopted we can anticipate with confidence the progressive execution of that plan to the eventual benefit of the nation. The loss of valuable land by erosion of all kinds has been going on over the centuries, and it will be a matter of many decades in some cases before restoration of that land becomes fully accomplished. Honourable members may rest assured that the recurring problem of river flooding is receiving close attention, and it is hoped that as soon as the availability of man-power and plant will allow, comprehensive control schemes will be launched in order to deal with some at least of the major rivers. It will be appreciated, therefore, that the absence of new works in this respect does not represent inactivity, but rather should be taken as evidence that careful planning is still proceeding. The Soil Conservation and Rivers Control Council has embarked upon an educative and informative programme so that the public will realize the seriousness of the country's need and the importance of the Government's policy as expressed in the legislation. Special films and publications have been sponsored by the Council, and these have already met with an encouraging reception. The keen interest being displayed by the Catchment Boards is most gratifying and indicates a commendable desire on their part to share in this great national work.

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