D.—2.

Hot- and cold-water services were provided in all houses, and, where available, electric light and sewerage. The actual costs for the year were— Cutting and erection of houses, including fencing, hot and cold water, £ electric lighting, &c. .. .. .. .. .. 189,662 Preparation of sites .. .. .. .. .. .. 2,943 Roading of sites .. .. .. .. .. .. .. 4,566 Drainage and sewerage .. .. .. .. .. .. 6,059 Water-supply .. .. .. .. .. .. .. 1,715 Land .. .. .. .. .. .. .. .. 12,790 Stocks of material held .. .. .. .. .. .. 8,460 226,195 Completion of work in South Island .. .. .. .. 15 £226,210 The amounts referred to under " Land," " Preparation of sites," " Roading," " Drainage," &c . are for more sections than those built on during current year. The total costs to date are as follows : — North Island houses :— £ Erection of houses .. .. .. .. .. .. 557,334Preparation. of sites .. .. .. .. .. .. 8,657 Roading of sites .. .. .. .. .. .. 12,985 Drainage and sewerage .. .. .. .. .. 20,915 Water-supply .. .. .. .. .. .. 4,353 Work on reserves .. .. .. .. .. .. 2,011 Land .. .. .. .. .. .. .. 81,442 Stocks of materials held .. .. .. .. .. 38,979 726,676 South Island houses £ Erection of houses .. .. .. .. .. .. 9,409 Preparation of sites .. .. .. .. .. .. 140 Roading of sites .. .. .. .. .. .. 26 . Drainage and sewerage .. .. .. .. .. 333 Land .. .. .. .. .. .. .. 1,596 11,504 Grand total .. .. .. .. .. £738,180 Since the inception of the scheme 728 houses have been built, at average costs as follows : —

Of these houses, those built in the years 1924, 1925, and 1926 are factory-cut, those built in the previous years being by contract. The average additional cost to these figures for year 1926, to provide for land, drainage, roading, water-supply, &c., was £103. REORGANIZATION OF WORKSHOPS. Complete layout plans and details for the reorganization of the four main workshops have been completed. Detailed shop designs and tenders for all structural work have been called for. It is expected that actual erection of the new shops will start early in 1927. Complete programmes have been established for the clearing of the sites as necessitated for Addington and Hillside workshops, and the work is in hand. New Machinery—ln accordance with the plan, the first year's allotment of machinery required to replace the obsolete machinery has been tendered for and selections made. This machinery will be installed in the existing workshops, and removed to new shops when complete transfer is made. New machines put into service this year include electrically driven planing-machines, wheel lathes, slotters, grinders, welders, and shop-trucks. Considerable improvement also has been made in the rearrangement of workshop machinery into groups conforming to the organization.

XLV

Year Year j Year ! Year i Year | Year Year , , 1920. 1921. j 1922. | 1923. | 1924. | 1925. 1926. lotah Five-roomed, houses — Number .. .. .. 1 56 95 19 42 252 251 716 Cost .. .. .. £971 £950 £914 ; £831 £705 £674 £635 £714 Six-roomed houses — Number .. .. .... 2 6 3 1 12 Cost £1,297 £1,254 £1,213 .. £972 .. £1,227