B—6

Progress has been maintained in development of Maori lands, and a programme for bringing into use a minimum of approximately 20,000 acres annually for ten years is under way. A further increase in house-building for Maoris is anticipated, and preparations have been made for handling more work in this respect. State Coal-mines During the year the Government purchased the undertaking of Taupiri Goal-mines, Ltd., a company operating the Roto war o and Alison Mines and owning extensive coal-bearing lands in the vicinity of Huntly. Six other smaller properties were also purchased mainly for development purposes. The Coal Valuation Commission has been established in accordance with the provisions of the Coal Act, 1948, and will soon commence its discussions to determine the global sum which is to be apportioned amongst the claimants in respect of the coal vested in the Crown on the Ist April, 1949. Christmas Island Phosphates In the Finance Act (No. 2), 1948, authority was given in section 2 for the Government of New Zealand to join with the Government of the Commonwealth of Australia'in an agreement with the Christmas Island Phosphate Co., Ltd., for purchase of the company's mining rights and assets on Christmas Island in the Indian Ocean. The purchase was completed on the 31st December last, the total cost being £3,000,000, which was shared equally between the two Governments. Negotiations are proceeding for the future management of the undertaking. In the meantime the British Phosphate Commissioners are managing the workings. Telegraph Extension Financial provision has been made for the expansion of the Post Office telecommunication network, including the overtaking of arrears of work which accumulated during the war and immediate post-war years. This provision covers estimated expenditure on new telephone switching equipment, both automatic and manual, outside telephone plant, machine printing telegraph apparatus, and radio plant. Most of *this equipment has been on order for a considerable time and some has already been landed, while reasonably early delivery is promised for the remainder. But many new buildings and extensions to existing premises are necessary, and a great deal of work in installing switching equipment and in new reticulation work has to be done before the Post Office will be able to give service to every one who wants a telephone or to provide a " no-delay " toll service. Progress is also dependent on the availability of labour, poles, &c.

25