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Excluding the Auckland load, which is being carried by the Auckland Electricpower Board with its own plant, there is approximately a total load of 18,000 kilowatts to be supplied, and for the supply of this we have the following sources :— Kilowatts. Horahora Government hydro-electric scheme, installed capacity . . 10,300 Grand Junction steam plant belonging to the Government, capacity . 3,000 Diesel plant at Penrose belonging to the Government, capacity . . 3,700 Rotorua hydro-electric plant operated by Tourist Department, capacity . . . . . . . . .. . . 350 And whatever surplus may be available from the McLaren's Falls hydro-electric station owned by the Borough of Tauranga, which has been drawn upon largely by the Government in the past prior to the completion of Arapuni, the available surplus being estimated at approximately .. .. . . 1,800 Total estimated amount available .. .. .. ..19,150 Amount of present load is .. .. .. .. .. 18,000 Thus there is at present an estimated surplus of approximately .. 1,150 It will be seen that, although the margin is small, there is a definite margin. Furthermore, certain industrial undertakings have their own power plant with which they can supply their own loads and may be able in some cases to feed back a small amount into the general reticulation ; also, as the winter passes away, the Auckland City load will fall, and it will then be possible for the Auckland Electric-power Board to supply power back to the Government lines for distribution should it be required to the districts where large milking loads have to be carried during the summer. Realizing, however, that the demand for electricity grows continually even faster than the population, I, immediately the gravity of the position became manifest, cabled to the High Commissioner to make inquiries as to the possibility of securing for prompt delivery a steam plant which could be installed in the Waikato district handy to the coal-mines. Negotiations concerning this are still in progress, and I expect to be able to report before long that a conclusion has been reached and definite arrangements made for the supply and installation of this plant. Considerable inconvenience has, of course, unavoidably been caused to the Auckland Power Board and other Boards on account of interruption of supply, and I may here state that although the Department is, under its agreement with its customers (the Boards) relieved from liability as a result of such happenings as have now occurred, every effort will be made and all expedition used to alleviate the position. The Director of the Geological Survey Branch of the Scientific and Industrial Research Department proceeded to Arapuni immediately after the trouble occurred, and, after closely examining everything then visible, returned to Wellington until such time as the headrace could be laid bare. He then again visited Arapuni and had a further examination, after which he consulted with the head of his Department ; and, at my request, the Minister in charge of that Department agreed that a technical committee, consisting of the head of the Department (Dr. Marsden), Dr. Henderson (Director of the Geological Survey Branch), Dr. Marshall (a member of the staff and at one time Professor of Geology at Otago University), and Professor Bartrum (Professor of Geology to the Auckland University) should further examine the position, and make a joint report. This they have done. The full geological report will be published in due course, but for the purposes of this statement a summary of it is as follows : — A block of country near the penstock tunnels, between the spillway and the power-house, broke away at 1.30 a.m. on the 7th instant, developing a crack extending along the front of the penstock tunnels and spillway. Water poured into this crack, developing hydrostatic pressure, which bent the block, including the power-house, progressively over towards the river. This bending extended over two days, while the base of the cracks filled up with grit, allowing fuller

2—D. la.