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sections in whatever locality they choose, instead of accepting sections in a block set aside by the Department. They have evidently not yet realized that the system of the Department in building in blocks of ton or twelve houses has already worked satisfactorily in the four main centres, nor the fact that to obtain the very great advantages of the Workers' Dwellings Act they must comply with the easy conditions imposed therein. Conclusion. During Ihe year I have visited Waitara. high-wood. Stratford. Eltham, Hawera. I'atea, Manaia, Kaponga. ami Opur.ake several times, and also the more outlying portions of the province. I have to record my appreciation of kindness and consideration received from all with whom I have been brought ill contact in carrying out my various duties. I have, ivc, Harry Willis, The Chief Inspector of Factories, Wellington. . Inspector of Factories.

WANGANUI. Snt, — Department of Labour, Wanganui, 26th April, 11)11. I have the honour to submit my annual report on the work of the Department in the Wanganui District for the year ended -'list March, 1911. The year has been a very prosperous one. Business people generally are well satisfied, and the prospects for the future are decidedly good. The building trade has been very brisk, the building permits for the year in the borough having amounted to £80,185, as compared with £76,216 for the previous year. In addition to the above, cottages have been erected in all directions in the surrounding suburbs, and it is safe to say that the prospects in this trade never looked better than at the present time. Carpenters, painters, bricklayers, and plumbers have been fully employed throughout. The furniture trade has also been very busy, and good tradesmen have been repeatedly advertised for. Brickmaking has also been busy, and both works have been kepi going at fairly high pressure throughout the year In tho freezing industry the season has been a very good one, more especially for farmers, g I prices for stock being well maintained throughout; but there is every indication of the works closing down earlier than usual, owing to the continued drought affecting the rape crop and feed at the present time being very scarce. Preserving has not been gone on with this year to the same extent as in former years, owing to the very high price of cattle. The manager of the local works informed mc that cattle are very scarce at the present time, more so than for the past seventeen years, and he attributes the cause mainly to the dairying industry, and to farmers usually killing off the calves, except perhaps a few heifers to keep up the herd. What has materially added to the shortage of the present year is the fact that some thousands of head were sold last year and taken out of the district. However, on the whole the winks have had a good season, and an increased number of hands have been employed. There has been no labour friction of any kind during the year. Slaughtermen are now working under a new award, which granted them a decided increase of wages, and it is gratifying to report that the management are also satisfied with the new conditions. The season in regard to the dairying industry has been very disappointing, owing to the continued drought. The early pari of the season was very encouraging, and it was anticipated that a record year was in sight, as it was estimated that there were nearly 50 per cent, more cows in profit than on any previous occasion. For the first four months the output was greatly in excess of anything yet achieved ; however, since January tin- supply has diminished, and some farmers have hail to dry their herds off. This is to be regretted, as creameries have been established and maintained at considerable expense in remote parts of tin- district. Dairy bands have been working under a new award, which has been well observed. Employment Branch. As previously stated, the year has been very good, and there has been no real difficulty in placing good men. Ninety-three men applied, and 52 were sent to private employment and Government works. Factories Act. This Act has not been difficult to administer, and only 2 prosecutions were necessary, the offence in each case being for failing to pay wages fortnightly. Fines were indicted in both cases. Other occupiers were cautioned for various minor breaches. Workrooms generally are well kept. The amendments to this Act have been well received, especially in regard to laundries. This provision undoubtedly affords some protection to European laundry-keepers who employ assistants and have to observe restricted hours. I find that section 2, re wages and overtime books being kept in English, has not had much effect in regard to Chinese, as in nearly all cases they claim to be partners, and so escape the clause. Two hundred and seventy-eight factories were registered during the year; this is an increase of 31 compared with last year.

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