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to warrant them. We have seen some examples throughout New Zealand where these Diesel units are rendering a very valuable service. On the other hand, we have been informed in some quarters that the costs of operation do not make them worth-while. We have the feeling, however, that if the costs in such cases were as high as have been quoted to us, then the successful examples which we saw would not be carrying on. If there is no probability of getting electricity by other means then the State Hydroelectric Department should give consideration to generating in those areas by Diesel plant. 6. COMMUNITY FACILITIES General community facilities, such as halls and areas for recreation, are also important in encouraging people to live and work in rural areas. We would like to commend to the Minister of Internal Affairs the special case of rural communities for assistance from the Physical Welfare Fund which is under his direction. Town areas receive a subsidy of £1 for every £1 they raise themselves. Considering the difficulties which beset people in remote districts, through the scattered nature of the distribution of the population, and in the national interest generally, these areas should receive a subsidy of £3 for every £1 they collect themselves, provided the local county is prepared to accept the ownership of the facilities and guarantee the adequate maintenance of them. We have noticed how much easier it has been to obtain labour, particularly of young people, in districts which are well served with community facilities. We would also like to commend to the farmers themselves the urgent necessity of co-operating and to provide these facilities in order that the young people may be encouraged to come to their districts and to remain in them. Valuable assistance is available for these farmers in the services of the Physical Welfare Officers of the Department of Internal Affairs. We think that these officers should be specially instructed on the national need for keeping people in the rural communities, and of the necessity for developing in these districts recreations and interests which will make livingconditions congenial. There is much that the Physical Welfare Officers can do in this direction. We have heard many tributes to the work they have done, and we hope that it will be extended. We would also like to stress to the County Councils of New Zealand the fact that they have a great responsibility to the people in country districts, and they must be prepared to assume that responsibility. Some Councils have assumed the responsibility for establishing and maintaining recreational facilities in their counties, and as a result, with the assistance of the Department of Internal Affairs, these areas have made great progress. We are also impressed by the fact that many counties will not accept such a responsibility, and as a result no progress is being made. We would ask the Counties' Association to stress to County Councils the necessity for Councils to accept their responsibility for community facilities in their counties, and for making some progress in co-operation with the Department of Internal Affairs towards providing these essential facilities. 7. LABOUR FOR SCRUB-CUTTING We have dealt with the labour problems of the sheep industry in general, but it is necessary to refer to labour for one aspect more particularly. That aspect is scrub-cutting. It must not be thought that the demands for scrub-cutting labour will be similar to such demands in past times. We