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Buildings and Tents, die. A punt 21 ft. by 10 ft. is under construction. This will be used for communication from eastern side of river across No. 2 lagoon to No. 2 cut, and the conveying of coal, &c. A concrete septic tank was installed at camp, and discharge-pipe run overhead across creek to lagoon No. 3. Blacksmith's Shop.- -This shop is in full working-order, and the machine-sharpening (compressedair power) plant doing good work. The class of rock met with has been very heavy on the drills, owing to the seams and honeycomb. Fitting-shop. —This shop is now fairly well equipped for ordinary jobs : a good lathe and power drill have been installed. An oil-engine was purchased to give the necessary power, and this is being installed. Locomotive and Trucks-Two oil-locomotives are on the works, but at present only one has been in use on No. 1 cut. About 300-odd feet of tramway has been laid in this cut, and the locomotive has been doing satisfactory work. The truck-bodies were built on the works, the bodies being kahikatea and the bearers kauri. These were built as cheaply as possible, but it will soon be advisable to procure metal bodies, as the price of same is falling considerably. Some platform tipping-trticks constructed of hardwood will also be necessary in order to deal with large boulders, and the design has been got out for same. General. -The steam-shovels have done very satisfactory work. Their output, of course, was considerably reduced on account of the water trouble, while the coal-consumption has been very high owing to the firebars being too open for the class of coal used. Orders have been placed for new grates with smaller spaces. One of these has been delivered, and has made a very considerable reduction in the coal-consumption. Several minor breaks have occurred, and a fair amount of wear noticed in the bucket-teeth and caterpillar sections, also the drag-bucket frame. The drag buckets, of course, are not designed for rock-work, but the country being so mixed they had to deal with a large amount of same, causing wear and straining of the frame. As is natural in works of this kind, and where operations were commenced without all the necessary materials, &c, the breaking into solid-face work is somewhat slow ; also, the machines were new to the drivers ; but for the coming year better progress should be made. The compressors have so far given satisfactory running, although a fair amount of repair work has been done, principally on account of overheating. The fan-belts also caused trouble, and all had to bo renewed. Now that the buildings are nearly completed and the odd. jobs done about the works it will be possible shortly to reduce hands. Works Expenditure.—The total expenditure during the year (including the new American machinery) was £39,620. Of this amount day labour accounted for £2,226 ; the greater part of the remaining expenditure was for plant and machinery. The local officer in charge is Mr. R. S. Logan, Land-drainage Engineer. I have, &c, 0. N. Campbell, The Under-Secretary for Lands, Wellington. Acting Chief Drainage Engineer. SWAMP LAND DRAINAGE ACCOUNT. Receipts and Payments Account for the Year ended the 31st March, 1922. Receipts. £ . j Payments. Cash in hand, Ist April, 1921 .. .. 29,057 011 Kaitaia Drainage District— £ g. d. £ g. d Debentures issued under Swamp Land Drainage-works, &c. .. 17,434 18 1 Drainage Act, 1915 .. .. 95,000 0 0 Loose tools .. .. 77 11 1 Stores and fuel .. 3,937 2 3 Management and engineering expenses. . .. 1,304 1 10 — 22,753 13 3 Waihi Drainage District — Drainage-works, cfec. .. 2,719 16.11 Loose tools .. .. 8 0 6 Stores and fuel .. 809 7 7 Management and engineering expenses. . .. 743 4 (i 4,340 9 g Poukawa Drainage District— Drainage-works, &c. .. 91 5 0 Management and engineering expenses.. .. 72 0 0 163 5 0 Hikurangi Drainage District — Drainage-works, &c. .. 2,882 611 Live-stock . . .. 6 10 0 Loose tools .. .. 122 13 9 Stores and fuel . . 2,168 3 10 Management and engineering expenses.. .. 1,319 14 5 6,499 8 11 Plant and machinery . . .. 58,299 0 7 Interest on debentures .. ... 13,779 11 9 Cash in hand, 31st March, 1922 .. .. .. .. 18,221 11 11 £124,057 0 11 £124,057 0 11

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