H.—29.

part of the Seed-testing Station. Six hundred lines of seed totalling 307 tons and valued at £22,000 approximately were selected. Samples on the basis of which purchases were made were checked against samples drawn from bulk deliveries. Relatively early in the financial year the work which the Department has been carrying out under the Small-farm Plan was handed over almost wholly to the Lands Department following the appointment of a Commissioner of Small Farms, but a number of developments which had been started by this Department were carried beyond the initial to the establishment stage, and some special advisory work relative to the Small-farm Plan was also carried out. The 1933 Certificate of Record testing-work was slightly greater than that of the previous year. This is satisfactory in view of the depressed financial condition of the dairy industry. In the Government Official Herd Testing there was also a slight increase in 1933 in comparison with the previous year. The Government subsidy to ordinary dairy-herd testing was continued— £6,000 was granted for the year. The work of the agricultural clubs was again characterized, by success. As in recent previous years, the Department's assistance was necessarily restricted. Conclusion. Much further information relative to the activities of the whole Department is contained in the divisional and other reports which follow. Every effort has been made to combine high efficiency and strict economy as much as possible in the activities of the Department, and I desire to state my appreciation of the assistance I have had in doing this from the Assistant Director-General, the Secretary, the Directors of the Divisions, and all members of the staff. During the year the Department lost the services through retirement on superannuation of some of its most valued officers holding responsible positions. These officers were Mr. J. W. Deem, Director of the Fields Division; Mr. J. Lyons, M.R.C.V.S., Director, and Messrs. D. Munro, R. Wright, and W. Wills, principal District Inspectors of the Live-stock Division; and Mr. R. H. Hooper, Editor. C. J Reakes, D.V.Sc, M.R.C.V.8., Director-General.

NAUEU AND OCEAN ISLANDS PHOSPHATE. Report of A. F. Ellis, C.M.G., New Zealand Commissioner, British Phosphate Commission. Particulars are supplied herewith regarding the fourteenth year of operations at Nauru and Ocean Islands since the industry came under Government ownership. The year ended on the 30th June last, and the shipments compare with the two previous years as follows : — 1931-32. 1932-33. 1933-34. Tons. Tons. Tons. Nauru .. .. .. .. 289,340 436,100 379,100 Ocean .. .. .. .. 142,200 224,200 177,489 Total .. ■ .. ..431,540 660,300 556,589 Distribution, of the output, in tons, was as follows : Australia, 356,089 ; New Zealand, 148,950 ; other countries, 51,550 : total, 556,589. The proportion of the output coming to New Zealand as compared with the two previous years is—l93l-32, 33-89 per cent. ; 1932-33, 26-95 par cent. ; 1933-34, 26-76 per cent. Importations of phosphate to New Zealand compared with the previous two years are as follows : — 1931-32. 1932-33. 1933-34. Tons. Tons. Tons. Nauru-Ocean 163,250 184,388 149,805 Outside 20,437 . 13,963 Total .. .. ..183,687 198,351 ' 149,805 During the year under review unusually good weather conditions have prevailed at both islands, while the health and labour position has been favourable. Following on the speeding-up of both the cantilever at Nauru and the system of shipping at Ocean Island, as mentioned in last year's report, a further interesting development is the improved rate of discharge recently attained at New Zealand ports. These factors are favourably reflected in freight rates.

12