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conclusion that we should recommend the issue of licences for nineteen more days and the transfer of two existing licences, all to be allotted as we later recommend. The allotment of this increased number of days will help to maintain the breeding industry which is a developing asset to the country, and will help to maintain the foreign market for yearlings which is dependent upon the existence of a sufficient opportunity to demonstrate within New Zealand the quality of New-Zealand-bred horses. At the last yearling sale thirty-one horses were sold to Australia. It will also permit competition on a more economic and convenient footing at centres which to-day conduct a meeting on one day a year only. SECTION 3.—RECOMMENDATIONS FOR REDISTRIBUTION OF TOTALIZATOR PERMITS FOR RACING (GALLOPING) CLUBS AND AMALGAMATION OF CERTAIN CLUBS REDISTRIBUTIONS 298. We recommend that the totalizator permits heretofore granted to the Otautau Racing Club, Hororata Racing Club, Kurow Jockey Club, Kumara Racing Club, Waiapu Racing Club, and Tolaga Bay Jockey Club should be no longer granted. Our reasons for this recommendation are set out in the First Schedule attached. Of the six days affected by this recommendation, that at present allotted to the Kumara Racing Club should be allotted to the Westland Racing Club which races at Hokitika. This will enable that club to conduct two two-day meetings per annum. 299. We recommend that one of these days be allotted to the Matamata Racing Club which, despite the fact that it is the centre of a very populous and closely settled country district, keenly interested in racing and now a popular training centre, at present enjoys only one day. This club is one of the most progressive in New Zealand and, despite its limited means, has provided a greater number of training tracks than any other club in the Auckland Province, except the Auckland Racing Club. The extra day will enable the club to finance desirable amenities. 300. Of the remaining four days, we recommend that one be granted the Stratford Racing Club and one to the Taranaki Jockey Club. These extra days are not only warranted on the ground of the public interest which the meetings of these clubs attract, but also by reason of the fact that weather conditions in the province in which these clubs function are so uncertain that financial embarrassment can readily result from bad weather on any of the days upon which racing is appointed to take place. 301. The two remaining days we recommend should constitute a pool available for allotment from time to time by the Minister of Internal Affairs, after consultation with the New Zealand Racing Conference. We