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supervision is rendered necessary owing to the large numbers of stock continually being introduced from Canterbury to Otago and vice vertd. The railway is of little use to the Inspector on his tours of inspection. With regard to the Dunedin Subdivision it is not much less in area than Oamaru, and contains about 220 owners (a larger number than in any other subdivision), most of whom, however, are small owners on freehold. It is the largest agricultural district, and the depot for most of the stock arriving from elsewhere. The subdivision is in charge of the Chief Inspector, uud being traversed by railway, and the roads generally in good condition, greater facilities are afforded in the work of supervision than in other parts of the district. In the Port Chalmers Subdivision there are 31 owners, and as it is the chief port of entry for the whole district, the constant attention of the local Inspector is required. In conclusion, I have to state that the district having been clean for some years, and there not being any rate to collect under the laws lately in operation, the Inspectors were not required to leave their headquarters, except when called upon for the purpose of granting certificates for travelling stock, or on duties connected with Ihe office of Kangers under the Crown Lands Department, and in mustering stock on hundreds and gold fields commonages for the purpose of levying assessment for grazing, on which duties travelling expenses were allowed. Under the Act now in force, and the regulations thereunder, it is incumbent upon them to visit periodically every portion of their subdivisions in order to become thoroughly acquainted with the condition of the flocks and with the changes of ownership ; and the Inspectors will also have to collect the rate under the Act. These duties will, of necessity, add to the expenses borne by the officers of this department, for which no allowance is made. I have, <&c, B. P. Bayly, The Hon. the Colonial Secretary. Chief Inspector of Sheep, Otago District.

By Authority : Geoeqe Didseuby, Government Printer, Wellington.—lB79. Price Is.]