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cent, of the total cost of administering the prison system of the Dominion. Had this money not been earned through the productive employment of prisoners, to this extent a larger appropriation from Consolidated Fund would have been necessary. On the farms a marked increase has been shown, and the year just closed constitutes a record for farm revenue received, the total being £22,000. The quarrying industry has now returned to its place as a revenue-earner of approximately £25,000 per annum. For several years this industry was adversely affected by an increased railway tariff resulting in several local authorities which were previously customers establishing quarries of their own. Although for 1928-29 the revenue is slightly less than the record quarry year in 1924-25, the yardage of output is the highest on record, and it is anticipated that 1929-30 will eclipse all previous years. Miscellaneous industries, which include lead-headed-nail making, floor-polish, sandsoap, firewood, and laundering, combine to show increased activity and revenue. Other industries of a more competitive nature —viz., bootmaking, mail-bag repairs, roadworks, labour contracts, and tailoring—have shown a slight decline in revenue. In some instances this is accompanied by a decline in output, but lias also been affected by price-reductions. The position, however, is that in each of these the work is carried out solely for other Departments, and the decline in revenue does not in any way necessarily involve a State loss. The growth of prison revenue for several years past has shown a steady upward tendency, indicating how in recent years the use of prison labour in New Zealand has been directed to a greater extent than hitherto on works which, while primarily utilitarian, are also sound economically. At Auckland Prison remunerative employment with a minimum of Public Account expenses has been provided in the laundering carried out for the Defence Department camps and Government Buildings, while the quarry, now fitted with up-to-date machinery to meet the present-day demands of modern highways, shows a substantial increase in output and revenue. Other industries which provide splendid avenues for vocational employment are the boot-factory and repair shop, tailoringshop, mail-bag repair shop, and the bakery. At the New Plymouth Prison the main operations are quarrying and gardening. The quarry is laid out to permit of strict supervision of the prisoners, who, on account of their propensities, require constant watching. The Waikeria Borstal Institution comprises a large homestead institution and one sub-camp. The farm consists of 4,815 acres, 2,100 of which is in permanent pasture, 1,300 in temporary grazingpasture, and the balance is either in process of clearing and draining or has still to be cleared. The climate of the district is good, and the work in the open air is excellent so far as the physique of the inmates is concerned. Dairying is the main activity, and by judicious culling and top-dressing the average yield per cow has shown considerable improvement in recent years. Pig husbandry is a feature in conjunction with dairying ; sheep-farming is carried on, also bee-culture, and an extensive garden and orchard. This enables the lads to obtain a training in all classes of agriculture on sound lines, and materially assists them in securing employment on release. At the Waikune Roadmaking Camp the principal activity is roadmaking and road-maintenance under special arrangement with the Public Works Department, entered into several years ago when it was considered that roadworks and highways in remote localities would be of national benefit, and while providing a useful outlet for prison labour would occasion the minimum of disturbance to free labour. In addition to the roadworks, the Department supplies crushed gravel to the local County Council, and to the contractors for the construction of the Whakapapa Hostel at the Tongariro National Park. This camp also does all carting for the Department's development farms at Hautu and Rangipo, near Lake Taupo. The Hautu Development Farm comprises 10,000 acres of pumice land, four miles from Tokaanu. Practically 2,500 acres are cleared and down in grass, the major portion yet being in temporary pasture. Prices recently realized for fat stock were a record for the Westfield market. The results so far achieved, and the splendid response shown to the cultivation applied, justifies a sanguine outlook in regard to the ultimate success of this farm-development experiment. It is considered that it would not be wise to offer individual isolated farms for settlement as developed, but that it would be better to wait until there is sufficient area broken in to enable a small community settlement to take place, which would warrant a school, roads, and other community facilities, and thus increase the likelihood of successful settlement and satisfactory prices being realized. An advantage of withholding settlement until a considerable area is developed is that the developed portions can be used as the basis of further operations and help to keep down to a considerable degree the capital cost of development. The Rangipo Development Farm comprises 3,500 acres of pumice land, ten miles from Tokaanu. The country is of a slightly higher altitude than Hautu, but has proved to be exceptionally fertile. It is being treated in a similar manner to the Hautu land. Bullocks, after wintering last winter at Rangipo, brought top prices at the Westfield markets. It is proposed to settle this farm on similar lines to Hautu, when development is completed. Several hundred thousand of Pinus insignis have been grown from seed on this farm, and are being used for shelter-belts, which will be placed on proposed subdivisional boundaries both at Hautu and Rangipo. » The Napier Prison is an old building situated in a splendid situation above the Marine Parade. Quarrying and gardening are the chief activities. The Wi Tako Prison is a farm of approximately 500 acres, adjoining the Trentham Military Reserve, which the Department also leases from the Defence Department for grazing purposes. Up to three years ago brickmaking was the main activity, but a financial investigation of the brick industry disclosed that heavy losses had been made over a period of years owing to the output being restricted in accordance with Government policy to Government requirements. The works are now leased to a private company. Since brickmaking has been abandoned, activities have been concentrated on