C.—lo.

surrounding districts. The original trustees were dead, and no new trustees had been appointed. As the eastern arm of Blueskin Bay comprises the Warrington Domain it was considered that the area could be more effectively administered by adding it to that domain. The special legislation, besides adding the reserve to the Warrington Domain, also repealed the special Act of 1876. During the year an area of 9 acres 3 roods 11 perches of the Wakefield Domain was exchanged for an area of 11 acres 3 roods 9 perches of freehold property. Two small portions of 3 roods 26 perches and 1 rood 34 perches of the Bulls Domain were taken for street purposes during the period under review. The reservation over a small portion of 23-2 perches of the Wanganui River Trust Domain was revoked by section 8 of the Reserves and other Lands Disposal Act, 1937, and the area incorporated in an adjoining Crown leasehold. The Crown lessee concerned is surrendering his leasehold rights over an area of 15-9 perches of his holding, and this piece will later on be added to the domain. The exchange was arranged in order to give the lessee more convenient road access to portion of his land and at the same time to enable improved access to be provided to part of the domain. The Kaihoka Lakes Domain of some 54 acres in the Collingwood district was, by section 26 of the Reserves and other Lands Disposal Act, 1937, declared to be a reserve subject to the provisions of the Scenery Preservation Act, 1908. The domain adjoins an existing scenic reserve, and it was considered advisable that it should be administered under the Act governing scenic areas. Control of the reserves is being entrusted to the Collingwood County Council under the provisions of section 13 of the Scenery Preservation Act. Arrangements were made at the request of the Domain Boards concerned for the control of the Tauranga and Silvcrdale Domains to bp taken over by the Tauranga Borough Council and the Waitemata County Council respectively. Orders in Council were issued appointing fifty Domain Boards to control domains for further terms, while forty-five vacancies on various Boards were filled by the appointment of suitable persons nominated by the residents of the districts concerned. In a number of cases additional members were appointed to Domain Boards. The Green Island and Miller Park Domains were united to form one public domain, as were the Alexandra and Alexandra Town Belt Domains. Permission was granted in seventeen cases for Domain Boards to increase the charges for admission to their domains on special occasions during the year. Three sets of by-laws were approved, and approval given in six cases to the setting-aside of camping-sites and parking-places in domains. Under the provisions of section 13 of the Land Laws Amendment Act, 1932, rental concessions to lessees of domain lands were granted in nine cases during the year. Numerous leasing proposals were dealt with and approved. These cases are always most carefully investigated with a view to making certain that fair rentals are obtained and that the rights of the general public over domain lands are jealously safeguarded. The usual form of lease permits the grazing of cattle, provided bulls and other animals likely to be dangerous are securely tethered. There is no doubt, however, that in all cases where a domain is much frequented by the public it would be of benefit to recreation generally if the grazing of cattle were absolutely prohibited. A similar prohibition would also tend to preserve the amenities of domains where the whole or portions thereof are covered with native bush or with ornamental trees and shrubs. These points are always given careful consideration when leasing proposals are being investigated, and as a general rule the Department does not encourage the grazing of cattle on public domains. During the year the Department was happy to be able to make a number of small grants to assist Domain Boards, particularly in country districts, to provide recreation facilities and generally to improve the domains placed under their control. The Department is convinced that the use of a reasonable amount of State funds in this way is well worth while, and particularly so in cases where the people of the district concerned are prepared to help themselves in the matter. The annual amount allocated to the Department for this purpose is, however, very small, and could be greatly increased with advantage both to the State and the general public. It is becoming more and more widely recognized throughout the world that the State should take a kindly interest in the recreation of its people, and the Department hopes that in future funds will be made available for general domain purposes on a much more generous scale than in the past. In addition to the cases referred to above connected with the addition of areas to existing domains by means of special legislation, the Reserves and other Lands Disposal Act, 1937, also dealt with several other matters affecting public domains and Domain Boards. Section 7 of the Act (introduced with the approval of the Audit Department) validated certain payments made by the Ohai Domain Board to a member of that body. Section 17 reappointed to the Patutahi Domain Board a member who had become disqualified to hold office on account of his having received, in connection with certain contracts with the Board, payments exceeding the limit of £25 allowed under section 3 of the Local Authorities (Members' Contracts) Act, 1934. In this case the member concerned paid into the Board's account the amount he received in excess of such limit, and it was deemed advisable to arrange for his reappointment to the Board. Section 22 provided extended leasing-powers with respect to the Pukaahu Hot Springs Domain. This domain is situated about eight miles from Whakatane, and contains hot springs of considerable value. The controlling authority, the Whakatane County Council, has endeavoured to arrange a lease of the area under conditions ensuring the development of the springs to provide up-to-date public bathing-facilities at all times at reasonable cost. Difficulties have, however, arisen in arranging a suitable tenancy, as public domain land may be leased only for a maximum term of twenty-one years. The legislation therefore provides that the Governor-General may from time to time lease the whole or any portion of the domain for such period not exceeding twenty-one years, with such rights of

3