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A large amount, of work is carried out in the prisons in connection with the manufacture of boots, clothing, uniforms, &c, for prison officers and prisoners. A number of prisoners are also employed at farming, dairying, and domestic work. Although a considerable saving in expenditure is thus effected and the State property is being improved and developed, we receive no credit in the Government accounts for these branches of industry. The value of all such work lias been fairly assessed, and is shown in Table No. 3 below.

Table No. 3. —Value of Prison Labour employed on Prison Works and Industries for which Cash Credits are not obtained for Year ended 31st March, 1918.

Summary. £ Cash and liiiancial credits earned by Prisons Department, 1917-18 ... 15,083 Estimated value of prison labour employed on public works, 1917-18... 18,239 Estimated value of prison labour employed on prison works and industries, 1917-18 ... ... ... ... ... ... 22,265 Total value of prison labour, 1917-18 ... ... £55,587 The gross expenditure of the Prisons Department for the year was £81,363. If from this is deducted what might fairly be termed the earnings of the Department during the same period (£55,587), the net debit against the Department stands at £25,776. Quite an appreciable proportion of .our expenditure has been incurred in the purchase of horses, stock, implements, grass-seed, &C, required in connection with the development of our farms, but it will not be long now before our preliminary expenses will have been mot, and a return will be obtained that will largely increase the financial credits obtained by the Department. Progress buring the Year. Buddings, tbc. During the past year considerable progress has boon made with the various building-works on hand. At Auckland the work of subdividing the area set apart for exercise purposes, begun last year, has been completed. The yards, six in number, each equipped with necessary lavatory and sanitary conveniences, have been provided. Each yard has a separate entrance, and as the subdivisioual walls are only 7 ft. in height the sun and air have free access to every section. A covered area at the end of each yard is provided for use during wet weather, and instead of the usual asphalt or concrete surface the central portion of each yard has been laid down permanently in grass. Under the present arrangement it is now possible to provide for a better system of classification than could be carried out under former conditions. The work of replacing the concrete cell-floors in the North Wing with kauri flooring has now been completed, and adds considerably to their appearance, as well as materially contributing to the comfort of the inmates. The corridor and balcony floors of this wing have also been relaid in concrete finish, the whole work having a decided tendency in the direction of brightening the surroundings. The new workshops are nearing completion, and should be ready for occupation in a few weeks' time. This building has been constructed of concrete blocks made on the premises from screenings obtained from the Prison quarry, and with concrete tiled roof. About 4,000 square feet of floor-space will be available, and the building is designed to permit, of power machines being used in connection with the various industries it is proposed to carry on. For the present bootmaking and tailoring will be the main industries. Exercise-yards to the number of four are being provided in connection with the workshops. Here again a better system of classification will be made possible.

Prison. Bootmaking for Officers and Prisoners. Tailoring (including repairs). Gardening anil Pinning. Roadmaking. Buildingwork. Quarrying. Domestic j Employment. Totals. Addington Auckland .. Invereargill Kaingaroa. . Lyttelton .. Napier New Plymouth Paparua . . Roto-aira .. Waikeria . . Wellington Minor gaols 450 314 420 243 721 138 2,223 570 85 70 30 1,600 459 1,251 520 195 455 190 160 176 204 500 890 1,329 6,249 1,811 421 2,397 369 344 1,193 2,164 3,131 2,711 146 618 1,321 16 5 3 551 82 '36 9 15 170 670 80 1,592 650 18 13 66 5 1,652 444 347 210 582 240 135 865 6 Totals 2,062 1,680 4,699 2,099 4,492 2,233 5,000 22,265 I