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OTAGO. (Robert T. Sadd, Commissioner of Crown Lands.) The only new settlement opened during the year was Maraeweka. adjoining Kauroo Hills, about six miles from Maheno Railway-station; area, 1,791 acres, in seven holdings. This was readily selected at the ballot, and the prospects of the settlers tire good. The older-established settlements are somewhat improved as compared with last year; better crops have been obtained, and the high pi ice of wool, stock, and all produce- has added to the settlers' prosperity. Ihe settlers on Elderslie No. 2 till applied for a revaluation of their sections under the provisions of the Act of last session, and an inspection was made by the Revaluation Committee accordingly. Each section was visited and every settler gave evidence, and it was agreed by the Committee that it was absolutely necessary to make a substantial reduction.

SOUTHLAND. (H. D. M. Haszard, Commissioner of Crown Lands.) There are twelve settlements in this district, the total area under lease being 71,366 acres, held by 288 lessees, paying an annual rental of .£15,502. Under the legislation of 1912 and following years the lessees of settlement land acquired the right to purchase the freehold, and since that time thirty-three lessees have converted their holdings. The area thus acquired totals 6,966 acres, for which .£19,084 was received. Xo new settlements were acquired during the year, but the remaining section in Maori Hill Settlement and one section in Ardlussa Settlement were selected. The two remaining sections in Ardlussa Settlement have been readvertised, and will in all probability be selected. The Edendale Settlement is still the most prosperous, and is the best advertisement for land for settlements in Southland. All the settlements, with a few exceptions, are sound and progressive. Owing to the past season having been a good one for grain, grass, and turnips, the prospects are good, but it must be observed that in this connection a great deal depends on the war, as at present labour is very scarce and material for improvements has risen considerably.

APPENDIX lII.—LAND-DRAINAGE OPERATIONS. (J. B. Thompson, Chief Drainage Engineer.)

During the past year the Land Drainage llranch has been actively engaged in attending to matters pertaining to land-drainage and river-protective works generally. The passing of the Swamp Drainage Act, 1915, will tend still further to increase the scope of this branch. Special inspections and reports were made in connection with the following : Rewi Settlement, Ruakura Farm drainage, Kumeti drainage, Ody's Swamp drainage, Eureka-Motumahao Swamp, Rukuhia Farm, Moutoa Estate, Waitaki River erosion, Steward Settlement, Waddington Settlement, Paranui Drainage District, Seaward Moss, Tokatoka Swamp, and also on other minor schemes. Work done by local bodies ovit of Government grants and subsidies was inspected, plans and specifications for such works Iteing examined for approval or otherwise. Vouchers in this connection, totalling £3,099 ss. Id., were prepared and certified to for payment lo the local bodies through the Treasury. Hereunder is a short report on works that have been carried out in connection with various grants, &c. : — Hauraki Plains: Orchard East, Road Extension. —This work connects the Orchard Road with the Turua-Netherton Road, and is the direct outlet for the Piako River Bridge at Ngatea (Orchard). A contract has been let by the Thames County Council for the erection of this bridge. The road was cleared for a distance of 1 mile 40 chains, and the road formed for 1 mile. The expenditure was £453. Hauraki Plains; Waikaka Tramway Road. —The ballasting of tin- tram-line was continued and the whole line raised for a distance of 1 mile 70 chains. Expenditure during year was £471. Hauraki Plains, Metalling Roads in. —The work done under this heading has been given in detail in the Hauraki Plains report. Shortly, some 8 miles 40 chains were metalled during the year, spread over the following roads : Kerepehi-Netherton, Kerepehi-Kopuarahi, Orchard West, Pipiroa-Orchard, Orchard East, Pipiroa-Waitakaruru, and Ngartia. The cost of work done during the year amounted to £5,006. Hauraki Plains: Maintenance existing Drains, &c. —This vote is for maintaining drainageworks on settled portions of Hauraki Plains until such times as the rating clauses of the Act are enforced. The expenditure during the year was £1,628.

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