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Two wooden motor-ships built by the New Zealand Government for the United States authorities for the Pacific war zone are now being prepared for entry into the New Zealand coastwise trade. These vessels, " Rosalie " and " Aranui," have each a cargo capacity of 250 tons. They have been chartered to the Northern Steamship Co., Ltd. Two steel motor-vessels, " Kanna " and " Katui," have been built in the United Kingdom for the Union Steam Ship Co. of New Zealand, Ltd., and they will shortly enter the New Zealand coastwise trade. A large turbo-electric steamer, " Hinemoa," is also on the stocks in Great Britain, and when completed at about the end of 1946 will enter the Wellington-Lyttelton express service Other ships are also on order for the New* Zealand local and Pacific trades to replace old ships either lost during the recent war or no longer economically serviceable. An extensive repair was made in the Wellington Floating Dock during the year to the Union Co,'s steamer " Karepo," which was seriously damaged through the underwater hull striking a submerged object in the course of a coastwise voyage. Demands by ships for accommodation at Calliope Dock, Auckland, continue to be heavy. The Docking Committee have, as in the war years, controlled New Zealand dock allocations throughout 1945-46. The shortage of ships' officers in general, and particularly the unsatisfied demand for engineer officers, has necessitated the granting of temporary permits to some uncertificated officers to ensure that ships will continue in operation. Continual attention is being given by the Department to maintain and improve the standard of accommodation in New Zealand ships for officers and ratings, and this object has been furthered by the withdrawal of gunners from New Zealand ships, thus providing crew spaces additional to pre-war accommodation. Discussions have been held with the shipowners and the maritime unions to secure improved heating and lighting of crew's quarters when ships are in port. Technical details are being worked out to use shore-generated electricity or storage batteries in lieu of the limited electric-power supply of most ships' own generating plants. Discussions have also taken place in respect of adopting a more rational and scientific basis for the assessment of deck cargoes, in which the important factors of the ship's structural fitness and stability are now taken into account before a deck-cargo license is approved. Since the conclusion of hostilities in the Pacific Ocean the Naval Board have authorized the removal of guns, armour, and other special equipment for defensively equipped merchant ships on the New Zealand register, and the work of removing such D.E.M.S. war equipment and restoring ships to pre-war condition has been steadily proceeded with under Marine Department supervision in such a way as to avoid unnecessarily immobilizing the ships. Small vessels used for coast defence by the naval authorities are also being reconditioned and returned to their former .owners or otherwise disposed of. INSPECTION OF MACHINERY Steam Boilers, Air-receivers, and other Unfired Pressure Vessels The following statement sets out the number of inspections made during the year ended 31st March, 1946, of fired boilers, air-receivers, and other unfired pressure vessels, with the corresponding figures for 1944-45 shown also : 1945-46. 1944-45. Fired boilers .. .. .. .. 4,551 4,499 Air-receivers .. .. .. .. 4,003 3,491 Other unfired pressure vessels .. .. 6,207 6,607 Total inspections .. .. .. 14,761 14,597

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