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2. Revenue. I beg to present herewith a certified copy of the last annual balance-sheet of the late Te Aroha Hot Springs Domain Board for the year ending the 31st December, 1902. Also summary of receipts (showing various sources of revenue) for period from the Ist January, 1903, to the 31st March, 1903, as follows :— £ s. d. Bath fees ... ... ... ... ... ... ... 366 3 6 Out-patients' fees ... ... ... ... ... ... 16 5 6 Tennis fees ... ... ... ... ... ... 7 16 6 Bowling fees ... ... ... ... ... ... 13 19 6 Library fees ... ... ... ... ... ... 580 Towel fees... ... ... ... ... ... ... 30 9 4 £440 2 4 5,023 public baths ; average cost, 4Jd. each. 9,779 private baths ; average cost, sfd. each. 3. Requirements re Staff. (a.) Appointment of Landscape Gardener. —In last year's recommendation I find that the appointment of a competent landscape gardener was strongly urged. I beg therefore to again urge the appointment of such an official. There is plenty of work to be done in the formation of fresh paths, flower-beds, terraces, mountain-track formation, &c, to keep him thoroughly occupied all the year round for many years to come. The conformation of the rising ground in the Domain is particularly adapted for the artistic display of scenic effect, and much grace and beauty could soon be added to this favourite health resort at the hands of a skilful landscape gardener. I therefore strongly recommend that such an one be appointed. (b.) Qualified Nurse. —Having to undertake the medical work of this Spa, the necessity for a female attendant needs no explanation. Her services would be required at the examination of many female patients, and that these services be efficient it is necessary that she be duly qualified. As I have also to undertake the surgical requirements of this district, and may be called upon to attend all forms of accidents or other surgical cases, the value of having such skilled assistance cannot be overestimated. I beg to propose that, when the services of this official can be spared, she may be allowed to nurse any of the out-patients at a fee of £2 2s. per week for ordinary cases and £3 3s. per week for obstetric cases or cases of infectious disease; these fees to be paid into the Public Account. This district has in the past again and again proved itself too poor to retain the services of a first-class medical man. For the same reason it could not maintain the services of a duly qualified nurse, but, nevertheless, at certain times it has been as much in need of one as any part of the colony. I therefore recommend the appointment of a duly qualified hospital nurse as nurse and attendant. (c.) Bath Attendants. —At the present time there are only two bath attendants at Te Aroha, and as these relieve each other at certain periods of the day there is practically only one bath attendant on duty at a time in charge of the private baths at Te Aroha. I therefore beg to recommend the appointment of two others, male and female, to take charge of the public baths. I estimate their salaries at: male £75, and female £71 10s. per annum. 4. Recommendations fob Current Year. I beg to recommend the following new works as necessary for the efficient working of this Spa:— (a.) Repair of Gold Swimming-bath. —ln order to supply a long-felt want, created by the absence of a cold swimming-bath, the late Domain Board built a very large concrete swimmingbath at a cost of about £300. But one mistake was made in placing this bath over uncertain ground, with the result that the weight of water, when the bath was full, cracked the bottom, and allowed the water to escape. All available money being required for more important works, this bath has been allowed to lie idle for a considerable time. Frequent requests have been made by the public to open this bath for their use, especially in the summer months. After conferring with practical men, I am of opinion that it is by no means impossible to repair this bath so as to make it watertight, and thus resuscitate a bath that will be largely patronised by the public generally, and by school-children learning to swim. The estimated cost of the repairs to this bath is— £ s. a. Concrete and cement work, including all materials and railway iron for stiffening the bottom... ... ... ... ... 191 9 0 Carpentering work ... ... ... ... ... ... 7 10 0 Painting ... ... .. ... ... ... ... 17 10 0 216 9 0 (b.) Alteration to Domain Office Building. —The appointment to Te Aroha of a Resident Medical Officer makes it necessary for the Department to provide him with suitable apartments in which he can carry on his work. There is at present no consulting-room, waiting-room, or other such conveniences. I therefore recommend that such alterations and additions to the present Domain Office building as may be found necessary may be undertaken, so as to supply a much-needed want—-viz., a waiting-room, a consulting - room, a small operating-room, and a lavatory, at an estimated cost of £160.