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Hohitiha (£26,793). Two new villas have been completed and are now in occupation. Alterations have been carried out in several wards. Christohurch (£11,684). A new workshops block has been erected. Alterations in the kitchen block are now complete. Now garages have been erected. Templeton Farm Colony (£5,568). The new laundry is now in operation. The general roading has been improved during the year. Seaclijf (£1,082). Fire-alarm system and fire services have been improved. The old boiler-house has been converted into an occupational centre and hairdresser's saloon. At Waitati a new kitchen was built in F. 2 Ward. Programme for Current Year. No doubt our programme of improvements to existing buildings will require to bo modified in view of war conditions, but the following are proposed : — Auckland. —An occupational block for patients at M. 3 Ward. It is hoped to commence the erection of a new boiler-house at another and more suitable site. Kingseat- Tenders are about to be let for the erection of seventeen cottages for married stall. An excellent site for the proposed settlement has been secured by the Department. Tokanui- It is hoped to begin the erection of the new services block during the year. The present blocks are not well situated and are not large enough for the present needs of Tokanui. Porirua. —Unavoidable delay in procuring machinery from abroad has held up the operation of the new service blocks, but they will be occupied by the end of the year. The whole sewerage system is being overhauled and modernized. It is intended to recondition the byres, which are almost fifty years old, and to install milkingmachines. It is almost impossible to get sufficient suitable labour to hand-milk nowadays. Nelson - -The old mental-hospital buildings in Nelson have almost come to the end of their possible usefulness, and a complete scheme of rebuilding is necessary. It is hoped to start this year. Hokitika. —There is an urgent need for a new butcher's shop and bakehouse, and we should bo able to commence this work before the end of the year. Christohurch.—lt is hoped to install some new equipment in the laundry and to erect an implementshed at Templeton. Seaclijf.—The unstable ground has affected the cottage and some of the wards on the female side, and these will require extensive repairs to make them safe. Occupational Therapy. For some years past, classes in handicrafts have been carried on at our hospitals, partly by voluntary workers and partly by experts who have received a small honorarium. This work is now past the experimental stage, and has grown to such dimensions that it requires co-ordinated direction under professional trained Occupational Instructors. Dr. Buchanan directed special attention to this matter on his recent visit to Great Britain, and oil his representations Miss Inman, a graduate of Dr. Gasson's School for Occupational Therapy, was appointed as Chief Occupational Instructor. It is intended that Miss Inman's duties will cover the whole of our hospitals, but in the meantime she is engaged at Auckland, where the greatest progress has been evident. In addition to the actual supervision of patients at work in the wards; an important part of the therapist's duty is to give lectures and practical training to the staff. The work carried on at the various hospitals may be summarized as follows Auckland.— I The old Mount Albert Borough Council pumping-station has been reconditioned for use as a centre for male patients. A lathe and some other machinery has been installed, and the work done is of a very high order. The therapeutic results have been most encouragiug. It is proposed to erect another centre for males of a difficult class near Male 3, and I feel sure that the small expenditure involved will be well justified. The Auckland Hospital Auxiliary have done great service on the female side, and the large number of women patients who show great interest in the work is a testimony to the efficiency of the Instructor. Kingseat. — Miss Waugh, working under the auspices of the Auckland Hospital Auxiliary, conducts a weekly handicraft class, which occupies 120 women patients. As Dr. Hunter says in his report, " Many of these were previously onlookers but are now active workers, with a corresponding improvement in their attitude towards life and their surroundings." A gardening class has been started. On the male side, the Rev. Jasper Calder carries on a handicrafts class with his well-known enthusiasm and lias also had very good results. Tokanui. —An occupational class for women has been started, and 80 per cent, of the men are engaged in some kind of work.

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