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Engineering trades have been somewhat depressed during the year, and business has been very spasmodic. Although men have lost very little time, employers have had some difficulty in keeping their staffs employed. Coachbuilding : A considerable amount of briskness has existed, in this trade throughout the year. All men have been kept in constant employment, and a fair amount of overtime has been worked in the majority of shops. Brick and pottery works : Trade for the year has been about normal. In one or two yards there have been certain additions made to plant, dealing chiefly with field-tiles and pottery-work, for which at the present time there is a fair demand. Tailors and dressmakers : There has been a steady expansion in these trades. There has been very little, if any, slack time, the year being an exceptionally good one for both employer and employee. : Confectionery and fruit-preserving : These industries are steadily growing in importance. Several new factories have been opened during the year. Employers still complain of the shortage of female and boy labour to handle fruit. This necessitates a considerable amount of overtime being worked in this industry by the hands employed during the year. The local freezing-works have now completed their operations for the first year. The value of mutton, lambs, and by-products exported was £20,707. With the opening-up of new country, and the steady improvement of sheep-breeding, this industry is sure to become one of importance to the Nelson district. Agriculture : With the opening-up of new country, this industry has grown extensively during the year. The season has been good, with a fair yield of barley and hops, and fair prices have been obtained for all farm-produce. Pastoralists : Pastoralists have also had a good season. There has been a steady rise in the price of wool and mutton. The abundant supply of feed has enabled heavy stock to be carried. The demand for store cattle and sheep has been well maintained, and good prices have ruled during the year. Orchardists : The soil and climate of Nelson, which is peculiarly adapted for this branch of industry, is being largely taken, advantage of by settlers. Each year sees an extension of orchards, thousands of young fruit-trees being planted. A considerable increase takes place each year in the export of fruit from this district, and the outcome of this is that growers are now endeavouring to place fruit on the English market. This year the first shipment of some 5,200 cases of apples (in first-class condition) was made. The result of this shipment is anxiously looked forward to by all engaged in the fruit industry. If payable prices are realised on the English markets, a great future will be onened up for the Nelson district in this particular industry. Shipping : At the port a considerable amount of improvement has been made to wharves, &c, during the year, but owing to the expansion of oversea trade shippers still complain of the lack of wharfage-accommodation, and further extensions to wharfs are now being carried out. During the year 1,452 steamers —6 of these being ocean liners — and 290 sailing-vessels visited the port, with a total tonnage of 407,250 tons. Factories Act. This Act has worked very smoothly during the year. Very few attempts are now made to evade its provisions. There has been a decided improvement in the class of building erected for use as factories. I find that, as a rule, factory-owners are ready to carry out any reasonable alteration suggested. During the year 650 visits have been paid to factories, and workrooms and bakeries have baen kept clean, but sanitary matters have not been at all satisfactory, chiefly owing to the incomplete sewerage system in the city. However, the new drainage and sewerage system is now complete, and connection has been made compulsory ; so that, with steady supervision during the coming year, I have no doubt this defect will soon disappear. Certificates of fitness were issued to 42 young persons to work in factories —viz., 24 boys and 18 girls. During the year 271 factories have been registered. This return stands the same as last year. The number of workers, including employers personally engaged, is 1,707 —1,465 males and 242 females —an increase of 128 on the previous year. Overtime. —There were 144 warrants to work overtime issued to 93 women and boys under sixteen years of age, who worked 2,557 hours. Accidents. —During the year 11 accidents were reported. Inquiry was made in each case to ascertain the cause, and, if possible, to provide a safeguard to prevent such accidents in future. The majorportion of the accidents, however, was caused by over-confidence in working stamping-, punching-, and planing-machines. None of the accidents were of a serious nature. Machines could not be further safeguarded without hampering work, and, considering the amount of machinery in use and the number of persons employed, the small percentage of accidents speaks well for the manner in which machinery has been protected. Care has also been taken to see that the employees injured are made acquainted with the provisions of the Workers' Compensation Act. Shops and Offices Act. This Act, with few exceptions, has worked satisfactorily during the year. Visits have been paid to all shops in reference to sanitary matters and also to seating-accommodation for assistants. During the. year there has been a steady improvement in these conditions ; but some difficulty is experienced from time to time in ascertaining the number of hours worked and wages paid. If the Act were amended so as to compel employers to keep a time and wage book, as provided under the Factories Act, it would greatly assist Inspectors in carrying out their duties, and be the means of detecting offences which