H.—2

XV

amount than that now paid, and more encouragement would be given to visitors to make this very interesting trip. A necessary step to the effective control of this track is the purchase of Glade Home, an accommodation-house at the head of Lake Te Anau. This house may not be a financial success for a year or two, but any loss thereon wjll be more than recovered in the lesser cost of maintenance of track and the guiding and hut-accommodation charges. There is one other step that is necessary for the complete and effective handling of this route, and that is the acquisition of the steamer on Lake Te Anau, or the placing of a steamer thereon by the Department. Coaches are being subsidised to this lake, jetties built, and large sums of money spent in advertising for the purpose of developing the tourist traffic, and the Government is receiving no direct benefit from this expenditure, but, on the other hand, is building up private monopolies which in future it will be difficult to control in the interests of the tourist traffic. I strongly recommend that the Government should purchase and run the steamer on Lake Te Anau. The cost of acquiring the steamer now would not be very great, but every year the purchase is delayed the cost will be infinitely greater. In purchasing this steamer service and other services of a similar nature I am convinced that the Government would be acting in the best interests of the tourist traffic and of the colony generally. The Government should also appoint its own guides, and furnish the shelter-huts with food and blankets. A power-launch, the " Lizzie," has been placed on Milford Sound by Mr. Sutherland, and is available for tourists. Between Milford Sound and Dusky Sound, and west of Lakes Wakatipu, Te Anau, and Manawapoun, there is a large block of country, including the famous Clinton Valley through which the Milford Sound overland route passes, which for scenic grandeur is unrivalled in the colony or elsewhere. This area is interspersed with lakes, fiords, and mountains of great beauty, and is destined, if carefully preserved, to become one of the colony's foremost attractions, and in time one of its greatest assets. In addition to its value as a scenic resort, it would prove a home for a number of native birds which are too rapidly disappearing. As a big-game forest it would also be invaluable. I strongly recommend that the whole area should be reserved, and that no further private interests be allowed to grow up therein. Stbwabt Island. Two huts situated at Paterson's Inlet have been purchased for the use of visitors. The red deer liberated on the island are reported to be doing well. I am pleased to be able to report that there is a possibility of a more suitable class of steamer for passenger traffic being run between the Bluff and the island during the next season than hitherto.