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A comparison between the Department's pre-war and present labour forces is of some interest: — 31st March, 1939. 31st March, 1950. Housing 4,156 6,230 Hydro-electric development . . . . 1,344 2,247 Highways and roads .. •• 11,702 4,779 Public buildings .. .. ..1,888 939 Railways .. .. .. •• 2,445 301 Aerodromes .. .. • • 1,503 1,088 Irrigation . . .. .. • ■ 656 120 Other works .. .. .. 2,690 2,455 Totals 26,384 18,159* * Includes 822 employees in the Pacific Islands. It will be noted that there is a considerable increase on hydro-electric development works. It is very necessary that the labour force on these works should be increased still further, and it is hoped that the present immigration policy will do something to meet this demand. There has been some improvement in material supply. Steel, which less than a year ago was holding up progress on many projects, is now available in reasonable tonnages. The main source of supply is the United Kingdom and, no doubt, we will continue to get most of our supplies from Britain for some time as supply from Australia is still very restricted and shows little improvement. This is to be regretted as supplies from Australia can be landed in New Zealand at one-half the cost of those obtained elsewhere. Cement still remains a critical material as the production from the three New Zealand works is quite inadequate to meet the present demand. Sterling funds have had to be used to bring cement in large tonnages from the United Kingdom. During 1949, 27,800 tons were imported, and Cabinet has approved the importation of 101,000 tons durng 1950, of which 17,000 tons had been delivered prior to the close of the past financial year. By the end of the present calendar year, and including last year, sterling funds exceeding £1,100,000 will have been so expended. These figures convincingly prove the value of the local cement industry to the Dominion and the loss which the Dominion as a whole is suffering because, for various reasons, the local cementworks are not yet in a position to cope with this demand. Proposals for the extension of the existing works are now well in hand and there is, in addition, a proposal to commence manufacture of cement on the west coast where the requisite materials are located close to the source of coal supply. No assistance in this direction is expected for at least two years and it will probably be longer before local production can supply a demand which is increasing rapidly. There have been, in parts of New Zealand, serious shortages in the supply of bricks. The position here is being currently examined. Although timber has generally been in much more plentiful supply, there have been, and still are, shortages of certain lines of finishing timber. The total number of building permits authorized during the year was 49,127. Classification and comparison with the corresponding figures for the previous year are stated hereunder : Year Ended 31st Year Ended 31st March, 1950. March, 1949. (a) State and other Government housing 4,376 4,652 (6) Private housing . . .. ..10,412 11,878 (c) Housing additions .. .. 8,313 8,680 (d) Works and buildings other than housing 26,026 24,085 49,127 49,295

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