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* The increase in number has necessitated certain structural alterations. The ground floor now provides a moderate class-room, a large library, and a conference room; on the second floor is a large class-room and offices. This has resulted in accommodation being provided for 3 nurses, instead of 14 as previously. With short introductory courses, refresher courses, and the post-graduate students, approximately 130 nurses passed through the school last year. It is therefore questionable whether a residential hostel should not be acquired. On account of the expanding work, it became necessary to enlarge the staff, and Miss A. Reid, who completed her work with UNRRA in June, 1947, and then spent several months doing observation work in North Europe, England, and Canada, joined the staff in March, 1948. A full-time secretary has also been appointed. Occupational Therapy Meetings of the Controlling Committee were held twice during the year, in addition to two meetings of the Selection Committee. Rules and regulations governing the course and examinations were laid down by the Committee, which also received the reports concerning the students and their training. Conclusion Several nurses received decorations from His Majesty the King during the year. These are women who have devoted their lives to their profession and have given excellent service in their particular field of service. Those receiving the 0.8. E. were Miss H. M. Comrie, Miss A. A. Joyce, and Miss M. L. Lindsay. Those receiving the M.B.E. were Mrs. L. G. McLean, Miss P. H. Chapman, Miss E. M. Julius, Miss T. E. Paora, and Miss M. Wehepeihana. This has been an exceedingly difficult year in regard to filling vacancies on the staff, particularly at Queen Mary Hospital, Hanmer Springs. Many nurses are not interested in this type of patient, and the hospital has the further disadvantage that it is a country hospital, with the result that the number of patients has had to be kept at a minimum. The St. Helens Hospitals are also under great disadvantage on account of lack of accommodation for domestic staff. This makes it difficult to obtain staff in this category. In order to assist hospitals generally with their staffing problems, the nursing officers at Head Office, and also the District Nurse Inspectors, have devoted a great deal of their time to the " follow-up " work involved in the re-employment of nurses who leave hospitals. The matrons of the public hospitals, lam sure, appreciate the amount of help they have received in this connection. I would again like to thank the executive officers of the other Divisions, together with the nursing and secretarial staff of my own Division, for their continued unsparing assistance. The Hospital Boards, Plunket Society, Order of St. John, New Zealand Red Cross Society, the Health Camp Association, the Crippled Children's Association, and the New Zealand Registered Nurses' Association have all . worked with the utmost co-operation with the Division, which is endeavouring to help to build the health service of New Zealand. DIVISION OF HEALTH BENEFITS It is now ten years since the Social Security Act, 1938, became law, and nine years since the inception of the first of the health benefits in May of 1939. Since that date scarcely a year has passed in which there has not been some addition to the range of medical and allied services available by way of benefits under Part 111 of the Social Security Act.

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