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Kumutoto Reserve.—This is the most popular reserve in Queen Charlotte Sound, being easily accessible by an hour's journey by launch from Picton, and is the favoured venue of many local picnics. During the past year further conveniences and fireplaces have been erected, and also some three miles of foot-track have been made connecting the three bays on the reserve. I would like to see two lainding-jetties erected on this reserve for the convenience of the public, particularly the older people, to whom the scramble from launch to dinghy for landing purposes is somewhat of a hardship. I consider two suitable jetties could be erected for a total cost of £100. Tennyson Inlet Reserve.—This extensive and beautiful reserve is somewhat out of the beaten track, but. is nevertheless being visited each year by increasing numbers. The Union Steamship Co.'s t.s.S. " Tamahine " visits this reserve in her fortnightly excursion trips from Wellington during the summer months, and many yachtsmen and visiting launch-owners from across the strait call in and camp there. As was mentioned in my last , report, applications have been made for permission to erect a hostel or accommodation-house on this reserve, but consideration has been deferred, since it is recognized that if any such structure is erected it should be proportionate to the potential value of this reserve as a first-class tourist resort. These three reserves constitute the most extensive and valuable from the popular point of view of the many reserves in the Sounds County. The other reserves are not visited by such numbers. Many of them are small and have been reserved for their picturesque values, being mostly situated on bold headlands at the entrances to the various bays, where they afford the tourist an example of the beautiful scenery that originally obtained in these sounds when the bush reached to the water's edge. Pokutukawa-trees. —During the year we have successfully established a number of pohutukawatrees on the reserves in the Sounds District. For assistance in this work lam indebted to several of our honorary inspectors, and in particular to Mr. Newton, launch-owner, of Picton. These gentlemen have assisted with the planting and looking-after of these trees free of charge to the Department. Pelorus Reserve. —This reserve is situated on the main Blenheim-Nelson Highway, at the junction of the Pelorus and Rai Rivers, and is almost our only remaining unspoilt remnant of the splendid virgin bush with which the Pelorus and Rai Valleys were thickly clothed. The profuseness of beautiful timber-trees excites the admiration of the general public. This reserve is under the control of a local Scenic Board, who are making steady progress with its development as a camping and picnic ground. For assistance they are entirely indebted to local subscriptions, since they make no charge for its occupation. During the last year they erected further conveniences, including' two bathingsheds. The goats which grazed on the blackberry on this reserve were all removed during the year, and I regret to say that the blackberry is again increasing. Mangamaunu Reserves. —These reserves, situated between the Clarence and Hapuku Rivers, in the Kaikoura County, are the favoured venue of many week-end campers throughout the year. Apart from the splendid scenery, the coast is famous for its good fishing —crayfish, butterfish, and others of the finny tribes abounding in large numbers, and being easily obtainable from the rocks fronting the beach. Most of the camping-sites are on the Road Reserve, and the Kaikoura County Council supervise and issue permits for the various sites. Hundalee Reserves. —The beautiful reserves situated south of Kaikoura known as the Hundalee Scenic Reserves are, with their combination of rocky coast and beautiful scenery, easily the most popular reserves in this district from a camper's point of view. Motor campers from all over the South Island, but chiefly Christchurch, visit them in increasing numbers. They are controlled by the Hundalee Scenic Board, who annually during the holiday season appoint a caretaker to allot campingsites, keep the reserves clean and tidy, and prevent the vandalism that for many years was rampant amongst certain sections of the campers. A small fee is charged for the privilege of camping on these reserves, which money, after defraying the cost of administration, is directed to the provision of further improvements to the reserves in the shape of conveniences, fireplaces, &c., for the campers. Recently the Hon. Minister of Scenery-preservation granted a subsidy to the Board, which, when added to the amount already held in hand for the purpose, will enable the Board to erect a caretaker's cottage. It is the Board's desire, when funds will, permit, to install a full-time caretaker instead of part-time as now exists. The Canterbury Automobile Association is actively interested in the development of the reserve, and assists the Board yearly with liberal donations to its funds. The Board is making steady progress with its development of these reserves, and the improved conditions are fully appreciated by the camping public, as is clearly shown by the largely increased number of permits issued during the past season, which were nearly three times as many as those issued during the previous year. In conclusion, I have to report that during the summer season the various tourist and holiday resorts were taxed to their fullest capacity, the many hostels and accommodation-houses being booked up well in advance of the holiday season, clearly proving the increasing popularity and importance of the Marlborough Sounds as a pleasure resort. Large numbers of campers occupied the numerous bays on our scenic reserves, but no damage has been reported, which shows that where fireplaces and other conveniences are provided, and scenic-reserve notices are posted, the public recognize their obligation to protect these reserves for the benefit of future generations. Many of the Sounds settlers materially benefit from this tourist trade, providing as it does a local market for their farm-produce. It is gratifying to know that the policy of our Department in providing these reserves has helped in this way to benefit the farmers, for the native bush provides a charm to the tourist visiting these Sounis, which if it had been entirely denuded would be lacking. The tourist trade is only in its infancy, and in future years I am convinced that all the larger bays will contain one or more hostels, and the surrounding farms be taken over by those anxious to cater for this traffic. I wish to record my appreciation of the services rendered by the honorary inspectors for supervising the various reserves covered by their appointments ; they have been of material assistance to our Department.