D.—l

Taumarunui and Waitakaruru, which were commenced in the previous year; the reconstruction of the upper stores of the Eketahuna and Woodville post-office buildings ; and additions to the post-office buildings at Pokeno and Ruawai. Areas of lands no longer required at Glen Oroua and Woodgrove, the old postoffice building and site at Tophouse, and the temporary post-office building at Port Ahuriri erected after the Hawke's Bay earthquake in 1931 were disposed of during the year. Areas of land were acquired as follows : Kaitaia (for drainage purposes), St. Heliers (for automatic-exchange building), Te Puke (for garage, &c.), Waimate (for improved access to post-office site), Wanganui (for store, garage, and workshops). Fire destroyed the Toko post-office building in March, 1935. Mental Hospitals. The capital expenditure for the year on mental-hospital buildings was £98,630, being £25,609 more than that of the previous year. It is proposed to appropriate £90,000 for expenditure on capital works for the current year. Auckland : At Avondale a new residence and garage were erected for the Medical Officer. Puhitahi : At Puhitahi, four new villas were completed during the year ; additional roading, water-supply, sewage works, and electric reticulation were carried out. Tokanui: At Tokanui a new villa for farm labourers was completed. Watermains were extended and renewed, and a complete remodelling of the sewagesystem was undertaken. Nelson : At Ngawhatu two additional villas, laundry, and boilerhouse were completed, and the installation of necessary machinery is well in hand. The watersupply system, including a new reservoir, was completed. A rearrangement of the electrical reticulation is in hand. Hokitika : A new villa was erected during the year, and was fully furnished. Christchurch : A new villa for women was erected at Sunnyside, and two additional villas were erected at Templeton. Good progress has been made with the water-supply scheme at Templeton. Seacliff : A new nurses' home was erected, and new machinery was installed in the boiler-house. Health and Hospital Institutions. The net expenditure under this vote, for the year was £656, and was mainly expended on additions to the St. Helens Hospital, Wellington. Expenditure approximating £40,000 is contemplated at Queen Mary Hospital, Hanmer Springs, in providing a new hospital for male patients, administration block, bulk store, and male staff quarters. Improvements to the water-supply for the hospital and township are also being undertaken. Provision is made for the payment of an initial instalment on account of the Government grant of £20,000 towards the cost of the new Obstetric Hospital at Dunedin. Minor alterations and additions to St. Helens Hospitals, Auckland and Wellington, are also being undertaken. EDUCATION. A further effort was made during the year to keep as low as possible the expenditure of capital funds on the erection of school-buildings, additions, and teachers' residences, and the purchase of sites, the net expenditure for the year being £57,160. Included in this figure is the sum of £5,871 which was provided out of the Consolidated Fund to cover the cost of works under £200.

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