H.-7.

8

In 1906 there was a reduction of £1 6s. lOJd. over the previous year, and now, in 1907, there is a reduction of 14s. OJd. over the net cost in 1906. These figures are highly satisfactory as far as they go, but that distance ends in the phenomenally high receipts for maintenance and sale of produce. The gross cost in 1906 was 13s. 5d. over that in 1905, and 8s. 8d. under that in 1907. These increases are due to rises in salaries according to scale, and to higher tendering for our contracts—a more or less general rise, especially marked in certain directions. As the last-named cause has only operated for four months in some contracts and nine months in others, we must look for a further rise in the gross cost during the next year. In the above table Head Office salaries and expenses (£1,648 12s. 4d.) and medical fees (£1,474 13s.) are omitted, (living these value, the net annual cost per patient is £25 lis. lOAd.. as against £26 10s. 6Jd. for 1906, a reduction of 18s. 7|d. In stating the cost per patient above, interest on capital expenditure is omitted, and also for repairs charged to the Public Works Consolidated Fund. Adding these items, the approximate full cost per annum per patient will be— s. d £ s. d. Average gross cost in mental hospitals ... ... ... ... 34 7 9} Proportion of Head Office salaries and expenses ... ... 10 6 „ „ fees for medical certificates, &c. ... ... 9 5 0 19 11 „ „ interest (averaged at 4 per cent.) on Public Works expenditure from July 1877 to 31st March, 1908 ... 7 0 3 Proportion of interest (averaged at 4£ per cent.) for capital cost previous to above period ... ... ... ... 0 15 10JGross cost ... ... ... ... ... ... 43 3 9£ Less receipts for maintenance and sale of produce ... ... 9 16 Of Net cost . . ... ... ... ... £33 7 8| In 1906 the full cost thus reckoned was £43 2s. 4d., and the net £34 9s. OJd. The receipts for the maintenance in 1907, calculated on average number resident, were £7 13s. 3d. per head, against £7 Is. Id. in 1906. The increase was largely augmented by receipts for past maintenance in a few cases, the effect of which in the case of Nelson is very apparent. We have had another successful year in the management of estates in connection with the mental hospitals, as the following return demonstrates: —

• The Christchuroh records of produce consumed were burned in the fire which destroyed the store ; the figures given are those for 1906, and may be aocepted as reasonably accurate. The increase in the value of farm operations over those of the previous years is noteworthy and praiseworthy. The part which intelligent farming plays towards the reduction of maintenance is a great matter, but greater far is the object-lesson to the community. The experiments which have been conducted at Seacliff, when applied to 66 acres leased at £1 ss. per acre, clearly demonstrates the possibilities of small holdings. Works Completed, in Progress, and Projected. —The following are the principal in each of the mental hospitals for the year ending 31st March, 1908: — Auckland : The butcher's shop, the bakehouse and store, and a new morgue have been built. The exercise-park has been completed. The acquiring of land under the Public Works Act for reception-house building, and grounds to be annexed thereto, has been delayed owing to objections, but it is expected thai the objections will be withdrawn, when the purchase will be completed and the Hospital, the plans of which are ready, will be proceeded with. A residence for the Medical Superintendent is authorised. On its completion the present residence in the front of the main building will, with little alteration, provide dormitory-space for forty-five women. Laundry machinery lias been ordered. Christchurch : The laundry has been extended and fitted. A new engine-room has been built. Various sanitary improvements have been carried out, and it has been necessary to sink another

Produce sold for Cash. Produce consumed in Mental Hospital. Total. .uckland Ihristchurch )unedin (Seacliff) lokitika relson 'orirua Wellington ... £ s. d. 608 8 2 1,803 1 3 1,704 17 10 25 4 6 142 19 9 1,006 13 6 349 17 7 £ a. d. 2,079 13 11 1,820 19 8* 3,506 1 1 447 5 0 867 10 4 1,870 14 0 448 16 9 £ s. d. 2,688 2 1 3,624 0 6 5,210 18 11 472 9 6 1,010 10 1 2,877 7 6 798 14 4 Total... Total for 1906 ... 5,641 2 7 3,866 12 10 11,041 10,438 0 2 4 a 16,682 2 11 14,304 15 0 Increase in 1907 1,774 9 9 602 18 2 2,377 7 11