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The contract for the penstock steel linings was completed in July, the segments being installed by the Department with the aid of a special 5-ton cableway. The internal welding of the linings is about two-thirds complete, and the installation of the auxiliary penstocks well in hand. In the permanent village, six more permanent houses have been completed, and five more are in hand. Concrete footpaths and kerb and channelling have been laid, together with a considerable increase in temporary accommodation for workmen. Miscellaneous road and stream diversions, including bridging, are well forward, and surveys have been completed for the access roading to the new scheme at Maraetai. Road construction has commenced on the Tokoroa end of this access. The number of men employed has risen during the year from some 600 to approximately 1,000. although a considerable shortage in carpenters still exists. Lake Coleridge. The foundations of the outside transformer station have been completed and water mains installed. Highbank.—This scheme has been completed and should be ready for the official opening in June. Repairs, due to recent flood damage, have been effected. This scheme should be a welcomc addition to the present development. Waitaki.—ln order to assist with future development on this river, ten miles of access road have been constructed. Lake Tekapo. The first tunnel shield has been completed at the departmental workshops, Temuka, carted to the site, and re-erected for final testing. The fabrication of this shield of 22 ft. diameter, the first of its type to be used in New Zealand, has been a major undertaking by the workshops. Excavation and lining of the shield-erection chamber is nearing completion, together with other preliminary work. 538 precast concrete lining blocks have been manufactured. The survey for the tunnel has been finished, buildings repaired, and machinery re-installed for a fresh sUrt with the work. Cobb River Scheme. —This scheme, which went into operation towards the end of June, 1944, has been of the greatest importance to the northern end of the South Island. Tying in with several existing schemes, it has ensured an adequate supply of power in this area. Work continues with the further development of the scheme, principally on the dam-site, where investigations on the bed rock are being carried out. Shafts have been sunk and drives excavated over the site. Difficulties have been experienced with inflow of water, and this has delayed the work on one shaft. The temporary dam and intake were completed in May. A considerable amount of work has been involved in maintaining the access roads due to heavy flood damage. A permanent water-supply has been ensured by the installation of a 20,000-gallon reinforced-concrete tank and pump-house. LAND IMPROVEMENTS Due to the man-power and plant shortage, this work has been considerably curtailed. However, it apparent from the reports from various districts that land has benefited generally by the works carried out provided adequate follow-up measures have been taken by the farmer. Wliangarei.—The Ruawai and Naumai Stopbank, Otamatea County, has been raised for a distance of 6 miles, with considerable benefit to property. Much record and investigation work has been carried out in regard to water-supply schemes for Dargaville Borough, Hobson, and Otamatea Counties. Stream gaugings and rainfall data have been taken, and reservoir and dam-sites investigated. The local people are taking a fresh interest in the schemes, although some apathy is apparent in one or two areas. The augmentation oi Kaikohe town water-supply extension has been delayed by non-delivery of pumping equipment. _ The work in hand will, however, complete the scheme. The various schemes operating in this district have been maintained throughout. Kaipara Harbour.—-Reclamation : General maintenance only has been carried out. Kerepeehi Block. 13,500 ft. of water-piping has been laid in order to reticulate thirty-five farms. Sand-dune Reclamation.- -Reclamation at areas such as Kaipara Heads, Muriwai, and North \\ aikato Heads and the Hokio-Manawatu district has again been on a limited programme and has been confined largely to maintenance and improvement of existing work. Accommodation and facilities for the staff have been improved. Seedlings have been raised, marram cut and planted out, and fire-breaks established. This, with the erection of firewatching huts and a telephone system, should assist with safeguarding the work. Land clearing has been carried out in widely scattered areas, but chiefly at Ohakune, Nelson, West Coast, and Southland. Priority demands on plant have prevented more extensive work being done. Records kept of areas previously cleared have clearly shown the importance of this work and provided adequate follow-up measures are taken the results have been most encouraging. The work generally comprises stumping, logging, rooting, levelling, and ploughing with some access roading. In Southland alone some 4,600 acres have been developed since the work started, involving 55 miles of access road and 35 miles of drainage channels. In the Ohakune area a total to date of 8,600 acres have been stumped at a cost to the country of only £1 per acre, and the result of this work has been reflected in an increase in vegetable production of some 79 per cent, and Hi per cent, in sheep. Waimate.—A drainage scheme of 900 acres has recently been completed, with anticipated benefit to the area. LIGHTHOUSES AND HARBOUR WORKS Lighthouses Improvements, renovations, and maintenance of lighthouses and attached buildings have been carried out during the year, together with routine overhaul of equipment. In general, living - accommodation has been made more comfortable and access and services improved.

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