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with considerable experience of hydro-electric power schemes, to act as Chief Electrical Engineer, and has appointed Mr. Lawrence Birks, another engineer with high professional credentials, as chief assistant to Mr. Parry in this work. It is satisfactory to note that the preliminary investigations and survey work carried out principally under the direction of the late Engineer-in Chief were in the right direction, and that the first schemes to be undertaken by the new engineers will be those evolved and advocated by the late Mr. P. S. Hay. The policy of the Government is to develop one large proposal first, and study results before embarking on a more extended programme. With this end in view, preparations are being made for developing a large scheme at Lake Coleridge, and conveying the power to Christchurch, Lyttelton, and surrounding districts, where there is likely to be a market for it from the outset. It is also hoped to demonstrate the advantages of electricity for haulage purposes on railways generally, apart from its value in special cases where conditions are unusually favourable. Inquiries are being made with a view to establishing within the Dominion new electro-chemical industries, which would obtain their power-supply from the Government mains. One of the most promising is the manufacture of chemical fertilizers, for which there is likely to be a large and increasing demand throughout the world. With the natural conditions obtaining in New Zealand it is probable that products of this nature could be manufactured on a large scale at a price which would make the industry profitable in itself and of benefit to the whole community. Another feature of the development of our water-powers on a large scale, which would have an important bearing on the social life of the people, is its possible influence in the home. The problem of assistance in carrying on domestic work under existing conditions is one which is steadily becoming more acute in most civilized countries. A practical solution seems difficult of attainment, but will doubtless ultimately be reached by reducing the amount of personal effort required to attain a given degree of domestic comfort. In mv cpinion, the dav is not far off in New Zealand when, with an abundant supply of electrical energy available at a cheap rate, it will be within the power of most people to utilize the new power for all the lighting, heating, and cooking required, without any trace of dust, dirt, or excess of heat. Under these conditions the kitchen would become as clean and as comfortable as the drawing-room, and domestic duties would no longer bear the stigma under which they labour while existing conditions prevail. The estimates of expenditure and revenue in connection with the Lake Coleridge project indicate possible prices for the supply of current which warrant the hope that such a consummation is within the range of practical achievement in New Zealand. The important question of electrifying the Lyttelton Tunnel, through which a large number of passengers travel annually, has given the Government careful consideration, and the Electrical Engineer, Mr. Parry, has been instructed to report upon this matter without delay, and to prepare the necessary plans with a view to the work being put in hand at an early date. He has also been instructed to furnish a report upon the utilization of Lake Waikaremoana for the supply of electrical power for lighting and industrial purposes in the North Island. This is expected to be available at an early date, and I am hopeful that the waste power latent there will, before long, be made available for the uses of the people. NATIONAL PKOVIDENT FUND. This fund, established by the Act of last session, commenced operations in March last, and the Department is now actively engaged in distributing information relating to the benefits and in corresponding with employers, local bodies, and industrial organ 1 'zations throughout the Dominion. The applications so far received show that all classes are desirous of enrolling— farmers, artisans, labourers, domestic and clerical workers of all grades—indicating, I think, that the scheme is based on right lines, and that by the time it is in full operation a considerable number of our workers, not otherwise provided for, will be enjoying the security of the fund. Interest in the working of our Act of last year has been much stimulated by the comprehensive scheme now before the Old Country, and based on compulsion, wherein it differs fundamentally from our voluntary system.