8.—6.

The production of coal from the State collieries has been" well maintained during the year, and the indications are that the State Coal-mines Account will show a satisfactory profit. One of the most encouraging features in connection with, the mining and quarry industry has been the success attained by the Onakaka Iron and Steel Company (Limited) in producing at the first trial at the blast furnace at Onakaka an excellent grey pig iron of marketable quality. The production of limestone for cement-manufacture is annually increasing, as during the year 1921 were 180,751 tons produced, being an increase of 10,798 tons over the quantity produced during the preceding year. As sulphur is destined in the near future to play an important part in the progress of the Dominion, the Government has recently completed the purchase of a large block of sulphur-bearing land in the North Island, which, when served by a railway, will constitute a most valuable asset. The activities of the Coal Control Department were transferred to the Mines Department during the year, and as the result of such transfer the saving in expenditure will be at the rate of £4,350 a year. Further economies affecting the activities of the Mines Department are in progress, and it is estimated that they will amount to £8,141 per annum. IMMIGRATION. There has been a steady flow of suitable immigrants during the past twelve months. The open nomination system enables the residents of the Dominion to secure all classes of skilled and unskilled labour. That the system is working well both for the Dominion and the individuals assisted is evidenced by the acknowledgments from immigrants, after they have settled in their new homes, of their indebtedness for the help they have received and in some instances refunding to the Government money spent in bringing them to New Zealand. There could not, I think, be better proof that the Dominion is securing by means of this system good citizens who are able to better themselves and fulfil their obligations to the State. The expenditure under the vote for the past year includes liabilities incurred during the war period which had to be liquidated. Considerable economy has been effected through restricting the travel of overseas settlement immigrants to the Dominion to the direct route, the saving for 1922-23 being estimated at £2,500. DEPARTMENT OF INTERNAL AFFAIRS. The following statement shows the savings in recurring expenditure effected during the year: — Vote : Internal Affairs :— (1.) Result of first reduction in cost-of-living bonus — £ Permanent officers . . . . . . . . .. 1,553 Temporary officers . . . . . . . . . . 842 (2.) Result of reduction of staff, transfers, &c. — Permanent officers .. .. .. .. .. 7,178 Temporary officers .. .. .. .. .. 4,1.81 (3.) Result of economies effected in general items .. .. 29,008 £42,762 In addition to the above there were large reductions in expenditure of a non-recurring nature. The complete result may be summarized as follows :— £ Total expenditure charged to vote, 1920-21 .. .. .. 574,297 1921-22 . .. ..367,062 Total reduction .. .. .. .. £207,235 The estimated expenditure for the current year shows a reduction, of £98,158.

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