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CORRESPONDENCE SCHOOL. During the year a course in the subject of telephone transmission was added to the curriculum, thus increasing the number of courses to fifteen. The new course, which will be issued during the coming year, will meet a keen demand for information regarding the toll network and modern type of carrier-current telephone equipment associated therewith. The other courses attracted some four hundred students during the year. Of those who availed themselves of the facilities provided by the School, 78 per cent, passed the examinations held at the conclusion of the courses. COMMERCIAL BRANCH. The revenue value of the transactions dealt with by the Commercial Branch during the year amounted to £51,342. The decrease of £9,774 compared with the preceding year is attributable to a reduction in staff and a curtailment of activities. Of the business dealt with during the year, £33,615 represents telephone business, the balance, £17,727, being in respect of advertising, postal, and miscellaneous.

STORES. Purchase of Stores during the Year 1940-41 (including Stores purchased from other Departments and Stores manufactured in Post and Telegraph Workshops).

Stocks as at 31st March, 1941. £ Wellington District .. .. .. .. 447,264 Auckland District .. .. .. .. 156,747 Christchurch District .. .. .. .. 72,055 Duncdin District .. .. .. .. .. 58,877 £734,943 DEPARTMENTAL MOTOR-VEHICLES. The purchase of new motor-vehicles during the year was greatly restricted, necessitating the retention in service of some of the older units for a longer period than usual. New vehicles placed in service numbered 14, all of which were of British manufacture. The number of vehicles in commission at the end of the year was 870, comprising 219 cars and 651 trucks and vans. Including old vehicles held for disposal, the fleet shows a decrease of 12 as compared with the previous year. The total mileage covered during the year was 5,514,129 miles, which represents a reduction of 1,376,070 miles compared with the previous year. WORKSHOPS. The total value of the work performed in the various workshops during the year amounted to £240,663, of which £44,464 represents the value of services rendered to other Government Departments. BUILDINGS. During the year the erection of the following departmental buildings was completed : Chief Postoffice buildings at Hamilton and Wanganui; post-office buildings at Brown's Bay, Kaukapakapa, Stockton Mine, Taupo, and Waiouru Military Camp ; automatic-exchange buildings at Avondale, Birkenhead, and Gisborne ; line store and garage buildings at Nelson and Tauranga ; garages at Arrowtown, Culverden, Waiau, and Waiuku ; and a receiving-station building at Awarua Radio. The new Chief Post-office buildings at Hamilton and Wanganui and the new post-office building at Taupo were opened officially by the Postmaster-General (the Hon. P. C. Webb) on the 2nd December, the 11th December, and the 20th September, respectively. Additions were made to the post-office buildings at Culverden, Dominion Road, Huntly, Matamata, Ngongotaha, Te Mata, Upper Hutt, Waharoa, and Waikaka, and to the automatic-exchange buildings at Devonport and Onehunga.

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Procured On Indent. within Total. New Zealand. £ £ £ Purchases for Post and Telegraph Department 228,248 280,037 508,285 Purchases arranged for other Departments, comprising (1) motor - vehicles for all Departments except the Post and Telegraph, and (2) other stores for nonpurchasing Departments .. .. 78,162 67,466 145,628 306,410 347,503 653,913