C.—l.

CANTERBURY. (N. C. Kenstngton, Commissioner of Crown Lands.) The settlement areas generally have experienced a good year with present prices ruling for sheep, lambs, and dairy-produce. The majority of lessees who have acquired their holdings since about 1912 are taking advantage of the Mortgagors and Lessees Rehabilitation Act, 1936, to have their affairs adjusted, and the various committees set up to deal with applications under the Act are kept continually at work. There is still a large number of holdings which are too small for the class of country occupied. The Department is farming Brinklands, McKenzie, and Ashton Settlements, which have been greatly improved during the past year. An area of over 306 acres was purchased during the year and added to the holdings on the Acton Settlement. OTAGO. (F. H. Waters, Commissioner of Crown Lands.) No new areas were acquired under the Land for Settlements Act during the year in this district. Of the many settlements acquired in previous years the majority are situated in North Otago, and as a result of the beneficial rains experienced the settlers on the northern settlements have had a good year and one that can be regarded as above the average. Generally the wheat crops have threshed out heavier than was expected ; and although showery weather made harvesting difficult the crops mostly were well saved. With the good prices for coarser wool and fat lambs the settlers' financial position has been much improved. However, the difficulty still remains with the man on the area too small to be regarded as an economic unit. Such areas are in evidence on some of the older settlements and give cause for much thought. On the settlement lands in the southern end of the district, especially on the low-lying land utilized principally for dairying, heavy flooding has been experienced during the dairying season, with the result that the returns have suffered accordingly. On the whole, the settlements subject to the Land for Settlements Act can be regarded as having experienced a good year, with corresponding increases in revenue. SOUTHLAND. (T. Cagney, Commissioner of Crown Lands.) No new estates were purchased during the year nor any settlement land opened for selection. With regard to conditions of existing settlements, my report on ordinary Crown land settlement generally applies. There are a few of these settlements which stand little chance of ever being successful selections owing, in some cases, to the limited area of the holdings and, in other cases, to the quality of the land.

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