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It lias not yet been possible to commence building at Cherry Farm ; but it is hoped that some villas will be started at an early date. At Levin Farm, buildings have been altered to meet our requirements and we now have nearly 200 children in residence. Progress is also being made in the provision of further accommodation. Alterations, Additions, and Improvements Capital expenditure on new works amounted to £195,588 during the year, and the following summary shows the principal items and hospitals at which this expenditure was incurred : (1) Avondcde (£10,938). —Alterations to the byres and installation of milkingmachines have been completed. New main boilers have been purchased. Improved bathing facilities have been provided for patients. Fire services have been improved. A new sports-ground and two grass tennis-courts have been provided and roading-work has been done. (2) Kingseat (£8,936). —Two staff residences have been completed and six more are in course of construction. A bus shelter has been erected and fire services and roading have been improved. (3) Raventhorpe (£10,925). —One new residence for staff has been erected. Extensive alterations to buildings have been made and heating of wards has been improved. (4) Tokanui (£8,065). —Two buildings for occupational therapy and a hairdressers' salon are in course of construction. Two bus shelters have been erected. An area of land is being prepared for the erection of about twenty-four staff residences. Roading and fire-protection services have been improved. (5) Levin Farm, (£10,234). —An additional building has been purchased from the War Assets Realization Board for conversion into a central dining-room to be run on the cafeteria system. Buildings are being converted to meet requirements. (6) Porirua (£58,335). —Installation of laundry machinery is proceeding. Two villas are nearing completion and a third is in course of construction. Fire-protection services have been extended and improved. (7) Nelson (£1,518). —Alterations are being made to store-rooms in villas atNgawhatu. Small laundry and drying-room has been erected at Nelson and a drying-room provided in the nurses' home at Ngawhatu. Roading has been extended. (8) Christchurch (£4,369). —A new granary has been erected at Templeton Farm.. Additions to administration offices and nurses' home are in course of construction. Ground is being prepared for a children's playground at Templeton Farm. (9) Seacliff (£25,752).- —A new wooden building is in course of erection to replace portion of old building rendered unsafe by land movement. Roading, water-supply, &c., has been carried out at Cherry Farm. Roading has been extended and improved at Waitati. (10) Lake Alice (£56,007). —Two villas to accommodate fifty patients each are nearing completion, and six villas, each to accommodate eleven patients, are under construction. Development work on water-supply, roading, fencing, &c., is proceeding.

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