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The licensees of the subdivided pastoral runs in the Mackenzie country have experienced two exceptionally good winters since they took possession, and have so far proved a success. The tree-planting clause in their licenses has met with the approval of all, judging by the practical manner in which they have planted in excess of the requirements. Most of the licensees have planted from 5 to 10 acres, and the trees which appear to thrive best are larch, Pinus muncata, and Pinus ponderosa. The older plantations throughout the district are looking exceptionally well. The reports to hand on the education reserves are of a satisfactory nature. In some cases tenants have neglected to comply with the conditions of their leases as to eradication of noxious weeds. Their attention has now been called to this. Transfers. The following is a statement of the transfers approved during the year : — „ Number Area. ienure - of Leases. Acres. Lease in perpetuity (land for settlement) ... ... 76 11,511 Lease in perpetuity (Crown land) ... ... ... 21 6,774 Village-homestead leases ... ... ... ... 21 561 Small grazing-runs ... ... ... ... 10 19,775 Renewable lease (land for settlement) ... ... ... 12 3,393 Pastoral runs ... ... ... ... ... 11 172,530 Education reserves ... ... ... ... ... 21 3,778 Occupation with right of purchase ... ... ... 2 526 Farm-homestead leases ... ... ... ... 5 792 Cheviot grazing-farms ... ... ... ... 1 3,033 Perpetual leases ... ... .... ... ... 1 63 Occupation licenses ... ... ... ... ... 21 4,391 Total ... ... ... ... ... 202 227,127 Cheviot Estate. Only a general inspection was made of this settlement during the year. The lease-in-perpetuity tenants continue their residence, and are improving their holdings. All these holdings have a neat and prosperous appearance. The crops have yielded good returns, and an increase in the area of wheat was noticeable. The root and legume crops were also satisfactory, and there was also an increase in the quantity of fat stock disposed of. This remark also applies to the grazing-farms; in fact, the whole estate has a neat, prosperous, and clean appearance. Dairying is now more in evidence with the small holdings. There is a small increase of population on the rural lands, and a decrease in the towns of Mackenzie and Port Robinson, leaving the number of souls in the estate about the same as the previous year. Three grazing-farm licenses expire in 1915, and are now being dealt with. Twenty-six grazing-farm leases expire in 1916, and the Board will have a busy time this year in dealing with the disposal of them by subdivision or renewal. Departmental. The total number of ordinary meetings of the Land Board was twelve, and there were six special meetings during the year. The total number of imprest vouchers was 337, covering £2,615; and the pre-audit vouchers 312, amounting to £22,394; the total being 649 for £25,009. I have to express my thanks to all the members of the staff for their loyalty and able assistance during the past year. C. R. Pollen, Commissioner of Crown Lands.

OTAGO. Returns for the year ended 31st March, 1914, show that closer settlement is steadily making headway in Otago. The total area now held by lessees from the Crown is 5,729,281 acres. The revenue received for the year just ended was £130,110, showing an increase of £3,564 over the previous year's receipts. The demand for pastoral or grazing country is still very keen, and areas in Central Otago suitable for fruit-culture are much sought for. During the year past the provisions of Part VIII of the Land Act, 1908 (occupation leases in mining districts) have been largely utilized in the acquisition of such areas, as also have those of section 129 of the 1908 Act as amended, which allows a free selection of unsurveyed land. Where the land is selected on a pastoral run under these latter provisions the consent of the runholder has to be obtained prior to the granting of any application." It is satisfactory to find that, as a rule, the runholder does not withhold his consent unreasonably. The Land Board has had to exercise special care in considering these " spotting " applications, as, though its desire is to foster the fruitgrowing industry, it finds that in some cases where areas are applied for the granting of the applications would seriously interfere with the future subdivision of the run. It is again a pleasure to record that the Crown tenants have had a prosperous season, and, in consequence, are well up in their payments, and also that in the matter of improvements they have, generally speaking, kept them well up to the mark.