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In addition to the beds between Gull Point and Bream Tail, those in the Tauranga fishery, Ahipara Bay, Kaipara, Hokiauga, Herekino, and Whangape Harbours, and the leased beds in Manukau Harbour, are open for picking this season. The license fee for taking oysters in the North Island has been raised from 10s. to £1. The beds in Foveaux Strait are yielding very fair results this season, and there are eleven boats engaged in taking oysters. The quantity of Foveaux Strait oysters exported to Australia during the year ended the 81st December last was 335,868 dozen, valued at £2,785. I have, &c, George Allport, Secretary.

The Principal Examiner of Masters and Mates to the Secretary, Marine Department. Office of the Principal Examiner of Masters and Mates, Sir,— Wellington, 12th May, 1905. I have the honour to submit 1113' annual report on the examination of masters and mates in New Zealand. The work has been carried out by the Examiners in the usual satisfactory manner at Wellington, Lyttelton, and Dunedin. Some delay occurred in Auckland in forwarding examinationpapers of those who passed at that jjort towards the end of last year: otherwise the examinations at Auckland appear to have been carried out in a satisfactory manner. Captain Reid resigned his position as Examiner in Auckland in March, and has been relieved by Captain Charles Fleming, formerly Examiner at Dunedin. The number of examinations has only increased by twenty over those of the previous year, this small increase being confined entirely to the local home-trade and river-steamer examinations. Auckland has again had more examinations than Wellington. Lyttelton has had less than half the number of either Auckland or Wellington, and only five examinations have been held in Dunedin throughout the year. The number of failures in the examination for foreign-going certificates has been slightly in excess of the passes; but in the examinations for the home-trade and river-steamer certificates the passes have predominated. I have pleasure in reporting that last June Mr. William John King, an officer in the Union Steam Ship Company's service, passed a very creditable examination for extra master's certificate. He obtained an unusually high percentage of marks, passed at first attempt, and proved himself to be an intelligent and quick worker. He was born and educated in New Zealand. I would again draw attention to the unfair position in which the deck hands of vessels running in the Auckland extended liver limits are placed, owing to service in these limits not counting .-is sen service in making them eligible for the foreign-going or home-trade certificate examinations. As owners of these vessels generally, and very properly, employ men with home-trade masters' certificates in this run, the deck hands serving in these vessels are practically precluded from promotion in such vessels without going into another trade for at least five years, as they are not eligible to pass the examination for home-trade master without having five years of sea service, one year of which must have been as mate. On the other hand, I would remark that the law still allows a man with only a restricted limit river certificate and one year's service in a harbour, lake, or river to command passenger-vessels running to all parts of the extended limits, such as between Auckland and Whangarei.

I have, &c, Harold S. Blackhurne, Principal Examiner of Masters and Mates. The Secretary, Marine Department, Wellington.