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convictions secured in some cases; but when the last case in which a prosecution was instituted was heard the Magistrate dismissed it on the ground that the regulations did not go far enough to prevent the practice. It is, however, proposed to again take proceedings should the fish be blocked in the same or similar manner, and if necessary new regulations will be made. The markets have been very well supplied with fish during the year, but there has been a marked falling-off in the number of flounders caught in Hawke's Bay of late. So far the Department has not been able to obtain reliable statistics of fish caught. There is, however, provision m Ihe Act of 1903 under which owners of boats and fish-curers are required to make returns to the Department in such form and at such periods as may be prescribed by the Governor in Council; and I would strongly urge that the necessary Order in Council should be made, as the returns would be of great value. . , The marine fish-hatchery at Portobello has been completed, and is now in working-order. It is under the control of a Board, which at present receives a grant of £250 from the Department towards the cost of maintenance. Grants have also been made to the Board by the Otago Institute, the Australasian Association for the Advancement of Science, and by the Otago, \\ aitaki-Waimate, and Hawke's Bay Acclimatisation Societies, which will enable it to make a start in the work of the hatchery and the introduction of suitable food-fishes. Mr. J. T. Sullivan has been appointed Inspector of Fisheries for Dunedin and the surrounding districts, and he is doing good work in seeing that the law is observed. Another shipment of 300,000 quinnat-salmon ova and of 1,000,000 whitefish-ova has been obtained from the United States, the ova having been again presented to the colony by the United States Fish Commission, to which the thanks of the Department are due. Mr. Ayson, our Chief Inspector of Fisheries, went to the United States and brought the ova over, and the shipment was a most successful one. The salmon-ova were taken to the hatchery at Hakataraniea, and 98 per cent, hatched out. Half the whitefish-ova were taken to Lake Kanieri and half to Lake Tekapo, and 95 per cent, hatched out. As the manager of the hatchery at Hakatarainea had to take the wbitehsh-ova to Lake lekapo, the Otago Acclimatisation Society allowed Mr. F. Deans, manager of its ponds at Opoho to proceed to Hakataraniea and take charge of the hatching of the salmon-ova, and he carried out the work in a most satisfactory manner. The thanks of the Department are due to the society for its courtesy in the matter. . . . Several fish believed to be salmon have been caught at the mouth of the Waitaki Liver. A gentleman recently from Scotland, states that he caught one of the fish, which weighed 4£lb., and that it was undoubtedly a salmon in appearance and taste. Although the taste was not so pronounced as that of Scotch salmon, still the flavour was fine and quite different from that of 10U During the year the following salmon have been liberated from the ponds at the Hakataraniea hatchery viz. : 448 four-year-old quinnat, 1,273 three-year-old sookeye, 2,626 two-year-old Atlantic salmon 224,252 eight-month-old quinnat, 12,000 one-year-old quinnat, and 162,613 old quinnat. Prior to the Istlpril 1904 135,600 quinnat 113,1 1 sockeye and 42 806 Atlantic salmon were liberated, making the total number liberated to date 692 779 At the end of March the following fish were in the ponds, viz. : 100 four-year-old quinnat 216 three-year-old sockeye, 230 two-year-old Atlantic, 13,000 one-year-old quinnat, and 75,000 three-month-0M to continue to import salmon and whitefish ova for at least two or three years more by which time it should be proved whether the fish can be successfully acclimatised m the colony or not. If the attempt to introduce and acclimatise them is successful, they will, as a 500,000 salmon-ova and 2000,000 whitefish-ova, instead of and 1,000,000, the quantities imported during each of the last two seasons, "we have the salmon-hatchery and the whitefish-hatching sheds, which will provide space for the larger numbers with very little alteration, the cost will only be about £50 more than the cost ot introducing and hatching the smaller numbers. introducing rf collecting ralnbow -trout ova for distribution tmongst acclimatisation societies requiring them, and arrangements were made to erect an eveinK Station at Rotorua, but owing to a difficulty about the site, which is Native land it is found to be Necessary to take it under the Public Works Act, which will prevent the collection of ova tMS OyTrs -It was proposed to lease the oyster-beds in the Hauraki Gulf which bordered on orivate land to the occupiers of such land, but after regulations for this had been prepared there were found'to te certain difficulties in the way which prevented the intention to lease being carriedl out It was then decided to open such of the beds as might be fit or .picking and the ChTef Inspector of Fisheries examined them for the purpose of ascertaining their condition with dre resuTt P that he reported that those between Gull Point, near Auckland and Bream Tail, the southern point of Whangarei Bay, were fit for picking. These beds have therefore been opened, and ovs ers are now being taken from them by persons who have taken out licenses to do so In order Cpreventnterference with the closed beds, and to see that small oysters are not taken from those that ar open, arrangements have been made for Mr. Bennett, the local Inspector to devote the whole of his time to this duty during the open season, and to employ an assistant when re<lU The'beds in the Northern Oyster-fishery, which extends from Whangaruru Harbour to the North Cane have been examined by the Inspector, Mr H Stephenson, who found that they are not fit for picking this season, and it has therefore been decided that they are not to be opened.