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20. For the year ended 31st March, 1949, the Public Account surplus from industries, after charging supervision (£25,000), interest (£10,000), and depreciation (£3,200), was £28,117 made up as follows : Public Account Industry. Surplus. £ Blockmaking .. .. .. .. . • 59 Bookbinding .. .. .. .. .. .. 1,212 Bootmaking .. .. .. .. .. .. 1,408 Brickworks .. .. .. .. .. .. 274* Farming .. .. .. .. .. .- 14,631 Gardening .. .. .. .. .. .. 1,100 Laundering .. .. .. .. .. .. 613* Printing .. .. .. .. .. .. 272 Roadworks .. .. .. .. .. .. 103 Quarrying .. .. .. .. .. .. 7,286 Tailoring .. .. .. .. .. .. 2,594 Tobacco .. .. .. .. .. .. 215 Miscellaneous .. .. .. .. .. 134 Over-all surplus .. .. .. .. £28,117 * Deficit, Only two industries did not show a Public Account surplus, these being " brickworks " and " laundering." The deficit on " brickworks" is due to overhead charges on unrealized capital; active manufacture ceased some years ago. That on " laundering " is due to the continuing small number of inmates at Addington and Arohata, causing the Department to give up most of this work. It is only at these two institutions that full laundry accounts are kept. 21. In last year's report mention was made of utilizing a compressor to assist in metal-production in the Roadworks Camp at Waikune. Delivery of this is now in sight and when delivered it should be of considerable benefit in the production of metal for the Main Highways Board. The Works Department has been asked to examine proposals put forward for further machinery for the same purpose. 22. The bookbinding-shop at Invercargill is shown in the accounts for 1949 for the first time, and it is satisfactory to see that a surplus of £1,200 is shown from this new venture which does a considerable amount of repair and rebinding work for our own offices and for other Departments. 23. The quarry output from the two small quarries at Napier and New Plymouth, the large quarry at Auckland, and the gravel-pit at Paparua remains fairly steady with a value for 1949 of £16,000, practically the same as for 1948. The new machinery for the Paparua pit is now practically all installed but will not be reflected in the accounts until the 1951 year. FARMING OPERATIONS 24. The Department's farming ventures have proved a success both from the financial angle and from their providing interesting and useful work in the rehabilitation of inmates. 25. With ever new farming technique and methods being evolved it is difficult, at times, for our own staff to keep in touch with the fuller benefits which may be obtained by the adoption and utilization of these methods. To help to overcome this the cooperation of the Land Development Branch of the Lands and Survey Department has

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