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I have to report that a good year's work has been accomplished by the departmental officers. The inspection of land machinery has been considerably favoured this year by the long spell of dry weather, which has facilitated the operations in the backblocks and the country districts generally. The ship-surveys are well in hand, but there are a great many land inspections that could not be made owing to the limited staff and to natural increases to machinery in the districts. This applies more particularly to the North Island, where machinery lias increased much more rapidly than in the South Island in recent years. Notable increases have been made during the year to freezing industries, both to machinery and to storage-capacities of works, all over the Dominion. The dairy industry has been well maintained, but the scarcity of labour owing to enlistment has hampered many industries and works all over the country. There has not been any boiler-explosion during the year, which is a very satisfactory record, and I have again to Congratulate the whole of the technical staff on such a result. Steam-jaressures keep on increasing, and where steam plants are in hands of untutored men in isolated places great care has to be exercised in making inspections. Not only have the boilers to be examined for defects, but the boiler-mountings and all the feeding-appliances as well. Lifts have received as much attention as possible at the hands of the limited staff, and many new electrically driven lifts have been installed in new buildings in the four principal centres. The automatic push-button lift is gaining in favour, and if such a lift is kept in proper order it is in every way a satisfactory addition to any building in which passengers are carried, and can be run without a lift-attendant. The engineering workshops have not been too busy during the year. In cases difficulty has been experienced in getting suitable material to fulfil orders in progress. 1 visited most of the districts during the year, and made a special trip to North Auckland districts to find out the most suitable place to locate an Inspector in the district. I consider that Whangarei would be the best centre to' open an office which would be a good working-base for the whole district. The question of placing an officer in this district permanently was mentioned in my report last year, but so far nothing has been done in the matter. Two additional. Inspectors are required in the North Island to cope with new work and to assist in the various districts when required. One .should be permanently stationed at Hamilton. The officer there has far too much work to do. The Palmerston North officer could do with six months' help now every year, and the Auckland District is in a similar position. The new inspections in the Wanganui district are increasing very rapidly, too. Annual Survey of Steamships and Auxiliary-powered, Vessels. The work connected with steamship surveys is well in hand. The surveys of steamships this year have been much more arduous owing to the many requests for piecemeal surveys. As far as possible all requests have been met, and surveys have thus been carried out in connection with the same ship at different ports of arrival and from time to time until the completion of survey. With a limited staff so employed the other work of the districts has had to stand over for the time being. Nearly all steamships have now been equipped with the appliances as set out in the regulations. Time had to be given for the construction of new boats, and to get air-cases made and other equipment. So far no trouble has arisen in the carrying-out of these regulations. Such rules are very hard on small shipowners who have small vessels with limited spaces for the placing and the stowing of such appliances. During the year the construction of throe vessels over 25 tons gross register was completed in the Dominion. One of these vessels is a steamer engaged carrying passengers and cargo in Kaipara Harbour. Another is an auxiliary scow propelled by oil-engines and trading on the coast. The other was tho auxiliary schooner " Strathcona," owned by the Pacific Cable Board. This vessel was wrecked on her maiden voyage to the South Pacific Islands. The plans and specifications of the hulls were carefully examined before the construction of these vessels was begun. Regarding the propelling machinery of these vessels, the oil-engines of one vessel were of foreign manufacture; those of tho other were made in Scotland, as also were the engines and boiler of the steamer. Tho engineering workshops in New Zealand have, however, to their credit the construction of four out of the six boilers which have replaced old ones in a similar number of steamers. The fifth boiler was of the Babcock and Wilcox pattern. The sixth was a secondhand boiler. The following are the particulars of the three new vessels : — S.S. " Ruawai" was built in Auckland, and after being completed she proceeded to the Kaipara Harbour, where she is now employed. She has a gross tonnage of 291 and a registered tonnage of 177 tons. She is 123-6 ft. long, 27 - 8 ft. in breadth, and 9 ft. in depth. This vessel can carry over three hundred cabin and deck passengers. The propelling machinery consists of one set of triple-expansion engines, having cylinders 12 in., 20 in., and 32 in. diameter and 21 in. stroke. One marine boiler generates the steam at a working-pressure of 1801b. per square inch. The hull is of wood. The keel, stern, and stern-post are of kauri, and three ironbark keelsons are fitted. The deck-beams are of iron. Oil-engine Vessel " Poroto " is an auxiliary scow of light draught, and was built for cargo purposes. Her dimensions are 87%3 ft. in length, 23*3 ft. in breadth, and 6"S ft. in depth. Her gross tonnage is 109 and the registered tonnage 57 tons. The vessel is fitted with twin screws. Each engine has two cylinders, 9 in. in diameter, with a stroke of 14 in. The engines develop 60 brake horse-power.