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Expenditure on those rations which must be purchased as distinct from those produced by the Department has increased by some £3,700. An increase of £2,200 under the heading " Maintenance of Buildings " was due to paying during 1947-48 for a number of buildings and some equipment taken over from the National Service Department during an earlier period. On that portion of the vote dealing more closely with industrial activities there was also increased expenditure. For instance, on " Farms and Gardens " expenditure increased by £6,400. This was due largely to the increased cost of top-dressing and also to the purchase of more up-to-date equipment which became available. The above remarks relate only to cash receipts and payments from the departmental vote. At this stage the accounts on a trading basis for the industrial activities for the year ended 31st March, 1948, are incomplete, but it is anticipated that they will be at least as favourable as those for the year ended 31st March, 1947, some of which are now mentioned in more detail. The industrial activities of the Department for the year ended 31st March, 1947, showed a Public Account surplus, after charging full supervision (£22,700), interest (£11,200), and depreciation (£2,700), of £25,739. Whilst every endeavour is made to conduct industrial activities on an economic basis, emphasis is also placed on the occupational and vocational aspect. This policy assists in keeping down the cost of administration, and the diversification of the range of work fits in with the general scheme of classification of prisoners. The following schedule shows the variety of industries embarked upon and the result from a public account point of view : Public Accounts Surplus £ Blockmaking .. .. .. .. .. 20* Boot making and repairs .. .. .. .. 2,282 Brickworks .. .. .. .. .. .. 295* Farming .. .. .. .. .. .. 13,014 Gardening .. .. .. .. .. .. 800 Laundries .. .. .. .. .. .. 128 Roadworks .. .. .. .. .. 1,424 Quarrying .. .. .. .. .. .. 4,168 Tailoring .. .. .. .. .. .. 3,741 Tobacco .. .. .. .. .. .. 204 Miscellaneous .. .. .. .. .. 293 £25,739 * Deficit. The deficit on " Blockmaking," which covers the manufacture of paving stones and reinforced-concrete fencing-posts, was caused by the shortage of cement and reinforcing material, whilst that under the heading of " Brickworks " is in reality the overhead charges on uncleared capital liability as active manufacture of bricks was discontinued many years ago. It is not proposed to discuss each activity in detail but to mention only three of the larger ones—viz., " Tailoring," " Quarries," and " Farms and Gardens." The tailoring industry, which is carried on in a mechanized shop attached to Auckland Prison and covers also the laundry and repairs to the Post and Telegraph Department mail-bags, had an output valued at some £lO,OOO. This output covers the manufacture of all institutional clothing as well as a considerable quantity of clothing for the Mental Hospitals Department. This shop also makes the uniforms and overcoats as supplied to the Department's staff.

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