H.—36.

remedied, or adjusted?— Reply: The answers to the above issues show to what extent causes of complaint exist, and what in my opinion should be done to remedy the same. Question B: What additional legislative powers are required to enable such grievance to be removed, remedied, or adjusted?— Reply: (1.) Power is required to enable the Drainage Board to raise a loan not exceeding £27,500 without poll, on security of a special rate over lands in the Sewage Area, to construct such necessary works in the Rural Areas as the Board may think fit, such money to be apportioned and spent by the Board on the basis set forth in my answer to Issue No. I. (2.) A direction that the Drainage Board should keep separate accounts showing from time to time the financial position of each Rural and Sewage Area respectively, and that the balance-sheet of the Board should, in addition to a general statement of account, also contain schedules showing the financial position for the year of each Rural and Sewage Area respectively. Also that the Board should supply to each local authority within its district each year a copy of the balance-sheet, estimates, and financial statement, as suggested in my answer to Issue No. IV. (3.) Power is also required to enable Your Excellency to make adjustments or to settle disputes from time to time as between the Board and the Rural and Sewage Areas or the local authorities in the drainage district, or to compel outside bodies whose districts may benefit by works constructed by the Board to contribute towards the cost of the same. Power is also required that would enable Your Excellency to give any necessary direction that may from time to time be required for the more effectively carrying out the purposes of the Act, and with power also to enforce Your Excellency's decision or direction in respect to any of the above matters. (4.) A general power for the Drainage Board to raise loans from time to time for new works, upon a poll of the ratepayers either in the whole or in any portion of one or more Rural or Sewage Areas, and power also for the Board to declare the whole or any portion of any such area to be a special-rating district for the purpose of such loan in the manner prescribed by " The Local Bodies Loan Act, 1901," which Act should be made to apply, mutatis mutandis, to the Christchurch Drainage District. This last power was not specially asked for by the plaintiffs, but it was suggested by the City Council, and the evidence shows that it is a very necessary one for the Board to possess, not only in its own interest but in the interest of the rural and sewage districts. Questions C and D: What amounts should each subdistrict have contributed, or what amounts should it contribute to the sinking fund? — Reply: The answers to these questions are practically given in discussing Issue No. I. In conclusion it only remains for me to state that, as the interest at stake is very considerable, and that as so many local bodies are concerned in the matter, and as their interests to some extent conflict with one another, I do not consider that a local Bill would have any chance of becoming law, and I therefore respectfully suggest that if my recommendations are approved they should be given effect to by a public Bill. Costs. The plaintiffs, having succeeded in the main, are entitled to costs. They asked that such costs should be made to include the costs connected with the local Bill that they sought to get passed by Parliament last session to remedy the matter. I have, however, no power to deal with anything else than the costs incident or necessary to the present inquiry. These costs are, no doubt, considerable. Exception was taken to the costs entailed in the employment of accountants in examining the accounts of the Board, and it was contended that the result could have been gained without all the labour employed. In my opinion it was necessary that a proper examination of the accounts should be made, for without it the plaintiffs would have been in no strong position to prove their claim; and I think it is most probable that, as the plaintiffs were prepared with full details of the figures, this may have had much to

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