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Domains (undee Act of 1905). These are dealt with in a separate report, and, as directed by the Domains Act Amendment of 1905, are reported upon by the Minister. It suffices to say that far more interest is now taken by the several Trustees, and the provisions of the Act are being efficiently observed. The total number of domains dealt with is 415. Cemeteeies. Cemeteries to the number of 482 are under the charge of this Department, and the gazetting of Trustees to take charge, and the filling-in of vacancies occurring through resignations, and other routine work is carefully attended to. As indicated in last year's report, small grants are made to assist the fencing-in, clearing, and putting-in-order of new cemeteries in outlying country districts. Landless Natives in South Island. By the passing of " The South Island Landless Natives Act, 1906," power has been taken to give effect to the awards made by the Commissioners. As soon as the whole of the surveys are completed, the necessary notices will be issued in the Kahiti, specifying the areas allotted and the names of the Maoris participating. Chatham Islands. In February last, at the request of the Hon. the Native Minister, Mr. C. Brown, of the Wellington District Survey Office (whose duties lie principally with Native Land Court work) was despatched to the Chatham Islands to report upon each block of land, dealing with the area and capital value, the value of the improvements, the unimproved value of each, and also its general character as to soil, &c. His report, which was very complete, dealt with 142 blocks and subdivisions of blocks, the total area being 191,047 acres, the capital value being £123,473 ; the improvements are valued at £26,720, and the unimproved value is £96,752. The land sold to Europeans amounts to 93,413 acres. The Native land leased to Europeans amounts to 38,692 acres, and unleased 58,918 acres. Crown land, such as school-sites, &c, amounts to 24 acres. Medical Assistance to Settlees in Outlying Districts. Some sixteen separate districts have availed themselves of the subsidies granted to settlers who form themselves into medical clubs and arrange amongst themselves as to the amounts they can guarantee towards the support of a medical man who will locate himself in their midst. Of these sixteen eleven are in the North Island and five in the South Island, the subsidies granted for each Island being respectively £605 and £375. Land Audit. In accordance with the provisions of section 3 of " The Public Revenues Act, 1906," arrangement was made with the Auditor-General to take over, as from the Ist February, 1907, Mr. Runcie and his assistants, who had hitherto carried on the land audit of the Department in the most able and painstaking manner. The system of audit hitherto in vogue, as far as this Department is concerned, was a most searching and reliable one, and the " card " system introduced by the Auditor enabled a most complete check to be kept upon the transactions with every Crown lessee or licensee, as well as all timber sales and transactions. I learn with much pleasure that up to the present the Auditor-General has seen fit to make no change in the system of auditing the accounts of the Lands Department, whose income has now reached £578,000 per annum. Depaetmental and General. It is some satisfaction to know that though as Minister of Lands you have visited nearly every portion of New Zealand, and have either met with every class of settler and Crown tenant or have been by letter in communication with them, no substantial grievances (which Commissioners and Land Boards could have alleviated) have been brought before you. Though it is in the natural order of things that some twenty-five thousand Crown tenants cannot always be treated in such a manner as to have no iust cause of complaint, it may fairly be claimed that the whole of the Land Boards and Commissioners as well as every officer of the Lands Department, do their very best to avoid all unnecessary friction, and I take this opportunity of stating that personally I feel deeply indebted to the whole staff of Commissioners and their officers for the ready and unremitting attention paid to their onerous duties. The Chief Clerk (Mr. O'Neill) of the Head Office has attached a statement showing the detail of the work carried on in this office, to which are added the duties in connection with