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Medical Superintendent, Tokanui Mental Hospital, in making himself and his staff available for the examination of any inmate who displays any signs of mental abnormality is gratefully acknowledged. A new departure as far as Waikeria is concerned was the appointment during the year of a Housemaster. The duties of this officer cover the general welfare of all Borstal inmates, and the social activities of the inmates as a whole. New ground is being covered in this work, and much yet remains to be done. Endeavour is made by friendly approach to ascertain the probable cause of lapses into crime, and it is possible that if by the correct approach the true cause is found, then the chances of eventual reformation are greatly increased. The spiritual welfare of the inmates has been well looked after by the ministers of the various religious denominations, to whom the thanks of the Department are due. Recreational activities have been continued throughout the year on as large a scale as possible. Except where an inmate is debarred by reason of unsatisfactory conduct, all are encouraged to take part in the games. Tennis in the summer and football in the winter are the principal avenues of outdoor sport, and under the control of the Housemaster organized swimming and life-saving have been introduced and have proved highly popular. One team was entered in the competition conducted by the Waipa Rugby Union, and earned high praise for its sportmanship and for the spirit in which its games were played. It is impressed on members of the team that success in matches is not the only consideration, and it is hoped by the continuation of competition play to inculcate a spirit of proper healthy sportsmanship in all who take part. It is also further hoped that, by making the participation in matches with outside teams a privilege dependent on good conduct and work, a class may be developed which will have a steadying and beneficial effect on the other inmates. Visiting concert parties continued at intervals throughout the year to provide wholesome entertainment, and special thanks are due to those persons who gratuitously give so much time to the welfare of those less fortunately placed. Entertainments are eagerly anticipated and thoroughly enjoyed. The educational side of the institution is suitably covered by the evening school classes, which are held on three nights each week under the instruction of Mr. A. L. Kidson. Two nights are given to instruction in general subjects, and the third is devoted to pictures of an educational nature. The benefit derived is considerable and, it is hoped, lasting. As the activities of the institution are mainly of a farming nature, it follows that the majority of the inmates are likewise engaged in activities pertaining thereto. In the vicinity of 30 men are continuously employed at work on the four dairies, where over 550 cows are milked. Additional men are also required for the pig-raising section, which is a very valuable and necessary adjunct of the dairy industry. Revenue for these two sections is considerable and accounts for the major portion of the revenue obtained from the farm. The milk-in-schools scheme continues to take practically the whole output from one dairy, and also provided further suitable employment in the bottling and pasteurizing sections. Fat cattle are disposed of for the local trade, and 120 head were fattened during the year. Prices remain good and our stock was eagerly sought after. Over the past season 3,500 breeding-ewes were carried, and the lambing percentage was a good one of 102 per cent. The majority of these are Southdown cross and are fattened for the local trade and export. Very satisfactory weights were averaged for the main drafts sold. In an endeavour to build up the sheep flock with younger ewes, approximately 1,100 of the better-class ewes were mated with Romney rams, and of the resultant lambs, 577 ewe lambs have been retained for flock purposes. The improvement in the overall quality of the flock will be seen in subsequent years as a result of this policy. Wool produced for the year comprised 128 bales and 15 bales of crutchings. Prices continue to be good and our clip this year was very favourably commented on by the auctioneers.

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