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Island Territories Department. —A new sanatorium, designed in New Zealand, has l>een erected at Rarotonga. Justice and Prisons Department.—New farm buildings have been erected at the Arohata Borstal Institution, utilizing prison labour. Land and Income Tax Department.—Office accommodation has been provided or is under construction at Christchurch, Dunedin, Greymouth, Invercargill, Nelson, New Plymouth, Wanganui, and Whangarei. Mental Hospitals Department.—New buildings erected include an occupational training school and workshop at Avondale; villas 4, 5, 7, and 8, together with the new laundry block at Porirua ; villas 7 and 8, water-tower, and 8 staff cottages at Lake Alice, Marton ; and alterations to dormitory block at Weraroa are under construction. Preliminary work is in hand in connection with the new hospital at Cherry Farm. Mines Department.—Camp accommodation has been provided at Glen Massey ■opencast mine. Native Department.—A housing scheme has been completed at Moerewa Freezingworks, and 8 houses have been erected at Hamilton. Police Department.—A new station has been erected at Dunedin Central, and two residences completed at Hamilton East. Post and Telegraph Department.—New buildings were constructed or are under construction at Culverden, Dargaville, Darfield, Gore, Island Bay, Kaikohe, Karori, Oreti Beach, Papakura, Seddon, and Whangarei. Several clock-towers have been •demolished as a precaution against earthquake damage. Public Works Department.—Buildings have been completed or are in course of erection at Dunedin, Kaitaia, and Sockburn for various departmental activities. Rehabilitation Department.—Accommodation comprising offices and training centres, &c., has been provided in eight centres. Railways Department. —A new goods-shed at Christchurch, a large reinforcedconcrete structure, is nearing completion. Scientific and Industrial Research Department.^—Farm buildings have been erected at Lincoln, and a laboratory for plant research at Palmerston North is nearing •completion. State Forest Service.—Accommodation for workmen has been provided at Berwick, Dunedin. War Assets Realization Board. —Sundry buildings on Air Force and naval stations have been disposed of, and the valuation and reclamation of material and equipment have been undertaken on behalf of the War Assets Realization Board. Miscellaneous. —Buildings of all designs and sizes, from small stores to large warehouses, from roadmen's cottages to completed camp accommodation for workmen, offices, workshops, &c., have been erected, extended, altered, repaired, and, in addition, the continuous task of maintenance has been attended to, in spite of difficulties in respect of labour and material supplies. HYDRO-ELECTRIC DEVELOPMENT Construction work on hydro-electric schemes has been given special priority during -the year. The power-house at Waikaremoana Upper Development was completed in February of this year, and erection of the first turbine, some, but not all of the parts of which have arrived in New Zealand, is proceeding. It is hoped to complete the 10-ft.-diameter tunnel from the headgates shaft to the intake structure by December of this year, when practically all construction work, with the exception of penstocks and the sealing of leakage from the lake, will be completed. This sealing will be undertaken at some future time after the new intake is in operation and the lake is at a low level.

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