H.—22.

of the prayer of the petition. The petition was declined on the general grounds that interference with the terms of the agreement entered into between the principal parties and embodied substantially in the Thames Borough Commissioner Act was not justified in the circumstances. Further legislative powers were conferred on the Commissioner by sections 20 and 21 of the Local Legislation Act, 1933. Town Districts. —The boundaries of the Normanby and Tahunanui Town Districts were altered by the exclusion of lands in each case. The Ohura Town District was declared not to form part of the Ohura County. Road Districts. —The Upper Ashburton Road District was merged in the Ashburton County. River Districts. —One new River District was constituted—namely, Te Ore Ore, in the Masterton County—the Masterton County Council being declared the River Board thereof. The statutory election of members of River Boards had not been held in two cases, and appropriate extensions of time were arranged in each case. Land Drainage Districts. —Three petitions for the inclusion of lands in drainage districts were considered. The boundaries were altered in two cases, the other case being still under consideration. The Freshfield and Uapoto Drainage Districts were abolished, such districts comprising lands which were also in the Taupiri Drainage and River District. A further petition for the abolition of the Tuatuamoana Drainage District was still under consideration. The Hauraki Plains West Drainage District was subdivided and the number of members of the Board thereof increased from five to six. The personnel of the Oroua Drainage Board was reduced from seven to five. Several Drainage Board elections were held on the 6th November, 1933, and the results thereof gazetted in accordance with law. An extension of time was granted for holding the election of the Kirikiriroa Board. A proposal, involving legislation, was before the Department for the purpose of amalgamating several Drainage Boards operating in the vicinity of Te Awamutu, bringing further adjacent areas under Drainage Board control, and making certain relevant provisions. The matter was still under consideration. By-laws of Local Bodies. —The by-laws of three County Councils were approved in terms of section 109 of the Counties Act, 1920. Two sets of by-laws were confirmed under the By-laws Act, 1910. Public Bodies' Leases Act. —Two leasing authorities were declared under the Public Bodies' Leases Act, 1908. Rating Act.—A proposal to adopt the system of rating on the unimproved value was carried in the Papatoetoe Town District. Urban Farm-land Rating. —The year provided the first substantial opportunity for carrying the provisions of the Urban Farm-land Rating Act, 1932, into practical effect in the different boroughs, town districts, and road districts affected. The Department watched the progress of the Act with considerable interest, and was called upon to give information and decisions on numerous matters arising out of same. A number of local authorities were requested to prepare farm-land lists in terms of the Act, and Assessment Courts were necessary in several cases. At the close of the year, Assessment Courts had been set up for twenty-nine boroughs, two town districts, and one road district. Judges of Assessment Courts were appointed for ten boroughs, one town district, and one road district. Thames Harbour Board. —Matters arising out of the serious financial position of the Thames Harbour Board were again prominently before the Department. In the early part of the year, conferences were held of representatives of the Thames Harbour Board, the Thames Borough Council, the Thames Borough Commissioner, and the Loans Creditors Committee, and, as a result, proposals were submitted involving the following points :— (a) The appointment of a Thames Harbour Board Commissioner and Thames Harbour Board Advisory Committee. (b) The administration of the borough and the harbour district by the one Commissioner, with a view to unification of the levying of rates. (c) Suitable allocation of proceeds of rate collections. (■d) Retaining certain rights to Harbour Board debenture-holders. These proposals were later considered by the Thames Harbour Board debenture-holders. The debenture-holders were not prepared to agree to same, and submitted to the Department alternative proposals involving mainly — (a) The appointment of J. M. Fox, Esquire, Secretary to the Thames Harbour Board, as Thames Harbour Board Commissioner : (b) The conversion of Thames Harbour Board securities to a rate of interest of 4J per cent. without any rights to a premium. These proposals were not agreed to. Accordingly, the debenture-holders again considered the position, and submitted fresh proposals to the Department, involving— (a) The abandonment of the special legislation governing the administration of the Thames Harbour District: (b) The abandonment of the proposal to appoint a Thames Harbour Board Commissioner and Advisory Committee : (c) Proceeding with the above-mentioned conversion of the Harbour Board securities : (d) Special provisions regarding payment of interest and collection of rates : (e) The promoting of suitable negotiations with the Thames Borough debenture-holders with a view to evolving a satisfactory scheme for the protection of the interests of both sets of debenture-holders. These proposals were not subsequently advanced to' any substantial degree. Certain provisional legislation was, however, granted for the purpose of temporarily reducing the rate of interest on the Harbour Board securities to per cent, and authorizing the Harbour Board to pay the

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