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Island a similar substation will be located near Christchurch at the termination of the 240-mile line from Roxburgh. In addition to these stations, work is proceeding at literally dozens of the existing substations where extensions are taking place to cope with the increased loading. This, then, is the general picture of the work going on all over the country, representing an effort of which we can be justly proud. If we have not all the power we would like, at least we are well on the way towards overcoming the shortage. The men on the job are doing their best, and to them I wish to express the appreciation of the Government. There is no doubt whatever in my mind about the successful outcome of the struggle. APPENDIX Further information relating to the past year's working is included in the attached report by the General Manager, while the annual report of the Rural Electrical Reticulation Council is also appended. -

APPENDICES APPENDIX A—ANNUAL REPORT OF THE GENERAL MANAGER FOR THE YEAR ENDED 31ST MARCH, 1949 The General Manager to the Honourable Minister in Charge. Wellington, 7th July, 1949. Sir Pursuant to section 15 of the State Supply of Electrical Energy Act, 1917? I have the honour to present herewith my annual report of all operations of the State Hvdro-electric Department for the year ended 31st March, 1949. As from Ist April, 1948, the Ministry of Works became responsible for the carryingout of preliminary investigations and for the design and construction of the civil engineering works associated with hydro-electric development by the State.- A further provision, consequent upon the above, is that the Ministry of Works also acts as consultant to the State Hydro-electric Department on matters of a civil engineering nature. This report therefore differs from previous reports and the details of civil engineering work will now be found in the Ministry of Works report. Some important changes were made in the financial structure of the State Hydroelectric Department designed to enable the Department to make full provision for complying with its statutory obligations. The bulk supply tariff schedule was amended to provide an estimated additional per cent, in revenue, while the rate of loan redemption was changed to coincide with present-day conditions. These changes are reflected in the results as disclosed by the balance-sheet for the year's operations. Improved hydraulic conditions and the commissioning of additional plant made the supply conditions somewhat better than those experienced in the previous years. ELECTRICITY CONTROL Throughout the North and South Islands the emergency which could be brought about by a season of abnormally low river flow may be superimposed on the long-term shortage of power. Therefore the Electricity Control Order gazetted in April, 1948, gives eVery Electric Supply Authority legal powers to limit consumption within allocations and to reduce load in emergencies. Subject to certain provisos, each

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