D.—l

A contract has been let for the new hospital for male patients at Queen Mary's Hospital, Hanmer Springs. It is expected that this building will be completed during the coming financial year. Other extensions provided for include boiler-house and laundry, and a new massage and bathhouse block. A contract has been let for the new Dental Training Clinic in Wellington, and the work is now well in hand and will be completed during the coming financial year. It is also proposed to proceed with the erection of a hostel for dental nurses in training at Wellington. EDUCATION. The net expenditure of capital funds on the erection of school buildings, additions, and teachers' residences, and the purchase of sites amounted to £561,944 for the year. This sum includes £15,0-98 provided by the Consolidated Fund to meet the cost of other small capital works. The following table shows for the last four years the capital expenditure on school buildings, additions, teachers' residences, and sites : — 1934-35. 1935-36. 1936-37. 1937-38. £ £ £ £ Public schools .. ... .. 35,105 87,908 162,894 331,558 Secondary schools .. .. .. 14,679 23,516 24,092 58,924 Technical schools .. .. .. 12,851 59,350 77,836 97,740 Training colleges .. .. .. .. 610 6,730 1,984 Native schools .. .. .. 5,419 8,399 12,172 34,180 University colleges .. .. .. .. .. 3,022 39,086 Massey Agricultural College . . .. . . .. 525 Child-welfare institutions . . . . . . 221 . . 351 Special schools .. .. .. .. .. 2,473 312 School for Deaf, Sumner .. .. .. .. .. 4,841 Kindergartens .. .. .... .. .. 881 Gross total .. .. .. .. 68,054 180,004 289,744 569,857 Less credits-in-aid .. .. 10,894 48,547 7,848 7,913 £57,160 £131,457 £281,896 £561,944 ESTABLISHMENT OF AERODROMES AND SUBSIDIARY SERVICES. Air transport has assumed a position of considerable importance throughout the Dominion, especially where speed is required or difficult country has to be traversed, and during the past year considerable progress has been made with the work of establishing aerodromes, landing-grounds, and other facilities which are essential to its development. No very extensive alterations to operating air services were initiated during the year, except that East Coast Airways extended its service between Gisborne and Napier to connect with Union Airways at Palmerston North, and Air Travel, Ltd., now operate regularly in South Westland as far as Jackson's Bay. The steady growth of traffic due to increased patronage and more frequent schedules on existing services is shown in the following table

XXXI

Passengers. Freight. Mail. Length Distance Quarter ending. Air Lines flown (Miles). (Miles). Number . Passenger- pounds Ton . miles p ounds Ton-miles. miles. 31st March, 1936 .. 1,108 188,300 5,440 563,000 7,090 356 6,400 348 30th June, 1936 .. 1,108 168,600 5,050 554,000 8,500 369 19,900 1,621 30th September, 1936 1,108 163,100 4,750 540,600 8,660 449 25,550 2,245 31st December, 1936 1,108 187,300 6,130 705,000 13,770 633 33,560 2,889 31st March, 1937 .. 1,114 257,965 8,386 874,000 13,180 596 32,340 2,533 30th June, 1937 .. 1,566 249,582 7,351 770,000 16,500 661 36,800 2,883 30th September, 1937 1,566 302,000 9,873 1,265,000 17,700 838 48,100 4,011 31st December, 1937 1,671 390,629 12,600 1,725,000 27,700 1,229 68,500 5,755 31st March, 1938 .. 1,712 388,906 13,958 1,758,000 29,800 1,573 62,800 5,556