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which are £5,834 in arrear as compared with £2,207 reported last year. This is accountedfor by the fact that the sixth year's improvements should now be done, when the occupier should have spent £1 per acre in addition to having one-fifth, or, if not residing, two-fifths, of his holding under cultivation. It is in these final improvements the special settlers are in arrear; but in all cases where the owner is actually settled on the ground and has cultivated one-fifth of his holding, as required by the Act, the Land Board does not hurry him to complete his improvements, unless he is applying for the title to his land. It is only in cases where the owner, by not residing, is required to do double improvements that the Board has pushed the holders to effect the improvements required under the Land Act. The Bangers' reports show that in none of the tenures, except small grazing-runs, where residence is compulsory unless the holder is residing within ten miles of the land, more than 45 per cent, of the owners actually reside on the land. The Land Board is bound therefore to insist on the penalty for non-residence being carried out. On rural land purchased under "The Land Act, 1892," fifty holdings have been inspected and reported on, but it is too early to draw any conclusions. On those reported on, the law requires improvements to the value of £2,901 to have been placed on the holdings taken up; the value of improvements found to be made was £5,272, being a surplus of £2,371. The value of the improvements in arrear was found only to amount to £600. Village-settlement Lands. —On the 113 holdings reported on this year, the improvements required to comply with the conditions under which the land was taken up were 292 acres cultivated and other improvements to the value of £1,972. Those found to be made were 793 acres cultivated and other improvements to the value of £5,354, this being three times the area required to be cultivated and more than twice the value of other improvements, a very satisfactory result; though the percentage found to be residing is not so satisfactory, being only 49 per cent., which will require further inquiry. Taken as a whole, these results can but prove satisfactory, and show that material progress is being made in every class of settlement. Forfeitures. —The following table shows the forfeitures which have taken place during the year for non-fulfilment of the conditions under which the land was held:— System. No. Area. A. k. p. Deferred payment ... ... ... ... ... 2 83 3 0 Perpetual lease ... ... ... ... ... 4 856 0 0 Village-settlement deferred payment ... ... ... 1 20 0 0 Village homestead special settlement ... ... ..13 144 0 37 Special settlement on deferred payment ... ... 2 194 0 0 Small grazing-run ... ... ... ... ... 3 4,355 315 Total ... ... ... ... ... 25 5,653 3 12 In the clerical branch the work continues to increase, owing to the large amount of correspondence, &c, in connection with the settlement of members of farm homestead associations and other selectors on their holdings, the preparation of schedules of areas and calculation of capital values, rentals, payments under the Government Loans to Local Bodies Act, &c, of the various associations' and other lands loaded for roads; conversions from one system to another, capitalisations, extensions, various returns, &c. The selectors on settlement conditions now registered on the books number 2,793, of whom 920 are under the farm homestead conditions ; and the work of seeing the conditions of the Act are complied with has assumed very large proportions. As applications for titles, transfers, &c, which are now very considerable, are received, the last reports have to be examined, and the necessary letters drafted in accordance with the state of the case. The Bangers' reports, which numbered over 1,200 during the year, have to be recorded, carefully checked and analysed, to show whether the conditions for the particular purpose for which they were made had been complied with ; and, in the case of defaulters, schedules for the Land Board were prepared, and the necessary notices sent out and followed up from time to time, to insure prompt steps being taken to comply with the Act. This necessitates very careful supervision, and constant reference to the records, to see that the required action is taken at the right time, and that none are overlooked. The work in connection with the Land Board has also increased very much, the sittings always lasting one whole day, and sometimes two days; the writing-up of the minutes takes, on an average, about three days after each ordinary meeting. The outward and inward correspondence, including reports from Bangers, surveyors, notices re payments from selectors, &c, aggregated over 27,000 letters, &c, or an average of about ninety per day. There were 246 records received from other departments and dealt with, and 1,260 vouchers were passed through for payment, representing a sum of £27,300; 950 cheques for wages, amounting to £6,350, were drawn on my imprest account. The work of transferring the accounts from the old to the new ledgers, and preparing cards for the Auditor of Land Bevenue, was also performed by one of the clerks, assisted by an extra clerk engaged for the purpose. The survey staff consists of twenty-one parties and one inspector, besides contract and Native Land Court surveyors. The office work during the year has been exceptionally heavy. It is only by the industry of the principal officers and their subordinates that the ever-increasing demands on the department can be kept pace with. I have much pleasure in acknowledging how much lam indebted to them for their assistance in coping with the work of the department. John H. Baker, Commissioner of Crown Lands.