F.—l

A list of new buildings and of alterations to existing buildings which it is considered to be required in the next decade has been carefully compiled, and the work will be carried out strictly in order of urgency. It is expected this year to commence extensive alterations to the chief-post-office building at Palmerston North ; and it is hoped also to begin work on a new building at Auckland for the accommodation of stores and workshops. Towards the end of the financial year 1926-27 it is hoped to commence operations on the erection of a new post and telegraph office at Dunedin, in which building provision will be made for the housing of other Government Departments. An endeavour is being made also to build a new post and telegraph office at Napier ; and preliminary action is being taken in anticipation of funds becoming available. ESTABLISHMENT OF NEW POSTAL DISTRICT. On the Ist July, 1925, a new postal district was established with Palmerston North as the chief post-office. The new district embraces portions of the former Wellington, Wanganui, and Napier Postal Districts. MARINE POST-OFFICE. The system of sorting mails on the mail-steamers (" Aorangi," " Niagara," " Makura," and " Tahiti ") travelling between New Zealand and Vancouver and between New Zealand and San Francisco, which was reintroduced in 1923, is being maintained. The expenditure involved is fully justified by the saving in time (twelve to twenty-four hours) that is effected in the delivery of correspondence from the Home-land and foreign parts. Not only is the delivery of inward correspondence expedited, but the time is extended up to which outward correspondence may be posted to connect with a steamer. Correspondence posted too late to be included in the closed mails for abroad made up by New Zealand territorial offices of exchange is forwarded unsorted to the Mail Agent, who while the voyage is in progress makes up closed mails for the places concerned in the same way as is done by a territorial office of exchange. The Mail Agents and assistants have continued worthily to represent the Department abroad. OVERSEAS MAILS. Owing to the severe winter conditions and to the restricted passenger traffic the fast transatlantic steamers of the Cunard line were withdrawn from service from December, 1925. The non-running of the Cunard steamers resulted in an extension of about three days in the time of transmission of mails from New Zealand to Great Britain. Ordinarily, mails from New Zealand despatched via San Francisco make a close connection at New York with steamers of the Cunard line due to sail on Wednesdays. The usual Wednesday sailings of the Cunard steamers were reverted to in April, 1926. INLAND MAIL-SERVICES. The various services continue to be performed satisfactorily, but keen competition is affecting detrimentally the passenger traffic of certain contractors. With the advent on a number of main routes of the passenger-service car the travelling public has ceased to use the mail-service car to the extent that was formerly the case. This is readily understood when the mail-service car's journey with its numerous stops is compared with the non-stop journey of the passenger-service car. The public demands rapid transport, and the passenger-service car is able to supply this better than the mail-service car. Roads in some districts are in a shocking condition, so much so that in a few instances it has been necessary to assist contractors financially to enable them to carry on. It is hoped, however, that with the extension of the " permanent " roading-system such assistance will not be required ; in fact, owing to reduced running-costs the Department hopes to benefit by the receipt of lower tenders. AUCKLAND-WELLINGTON "DAYLIGHT LIMITED" EXPRESS. The inauguration in November, 1925, of the " Daylight Limited" express train between Wellington and Auckland enabled the despatch of letter-mails between the two centres and between other important post-offices in the North Island to be expedited.

3