H.—22.

to review the whole position. For this purpose a conference of interested parties was convened by the Minister of Internal Affairs and held in Wellington on the 22nd and 23rd November, 1937. This conference, over which the Minister presided, was attended by the member of Parliament for the district (Mr. J . Thorn), representatives of the Internal Affairs and Marine Departments, the Thames Borough Commissioner, representatives of the Thames Borough Advisory Committee, Thames Chamber of Commerce, Thames Borough debenture-holders (both Australian and New Zealand interests), and Thames Harbour Board debenture-holders. After two days' discussion of the best ways and means of providing for the future of Thames the following resolution was accepted generally by the representatives of the organizations present at the conference, but not unanimously : — " That the Representatives at this conference recommend to their principals to agree to the adoption of the following arrangements : — " (1) That the control of the Thames Borough by a Commissioner be continued for a period of three years from the termination of the present arrangement. " (2) That the reduced rates of interest payable to the borough debenture-holders and the reduced contributions to the sinking funds be continued for a further period of three years from the termination of the present arrangement. " (3) That for a period of three years from the Ist April, 1938, the rate of interest payable to debenture-holders of the harbour loan and the instalments to harbour loan sinking funds be reduced by one-third so as to be in accordance with the reductions in respect of interest rates and sinking-fund instalments on the borough loans. " (4) That the present basis of valuation for rating purposes in Thames be extended for a further period of three years from the termination of the present arrangement." This resolution was transmitted to the Government. The Government agreed to the extension for three years of Commissioner control of Thames and the special basis of valuation for rating purposes, but did not agree to the proposals to reduce the rates of interest for a period of three years. The Government's opinion was that early steps should be taken to try to reach some permanent basis as to the value of Thames debentures and the interest and sinking fund to be payable on those debentures ; and with this object in view it contemplated the appointment of a Commission of inquiry to investigate the matter fully and make recommendations on which a permanent settlement of those questions could be made. It then became necessary, in order to give time for this to be done, for some further provision to be made respecting the interest and sinking-fund payments, and it was finally decided, in this respect, to carry on the then existing arrangements for one year. The Government's decisions are embodied in the Thames Borough Commissioner Amendment Act, 1937, which— (а) Further extends for three years the period of Commissioner control of Thames. (б) Continues for a further period of three years the use of the special valuation roll for rating purposes in Thames. (c) Continues for a further period of one year from July, .1938, the payment of interest and sinking fund on Thames Borough debentures at two-thirds of the normal rates. (d) Continues for a further period of one year from April, 1938, the payment of interest on Thames Harbour debentures at 4J per cent. The general purpose of these provisions, thus, was simply to carry on the existing arrangements for Thames for further periods. The extension of the period of Commissioner control automatically postponed for a further period, until May, 1941, the general elections of Mayor and Councillors for Thames. The further steps towards the appointment of the Commission referred to are under way. Auckland Metropolitan Drainage. —For some years past the question of more adequate drainage facilities for the Auckland metropolitan area has been under consideration. The fact that the metropolitan area is divided by the waters of the Waitemata Harbour prevented the drawing-up of one comprehensive scheme for the whole area, and consequently a scheme prepared by the engineer to the Auckland and Suburban Drainage Board made separate provision for the drainage of the North Shore and the Isthmus areas. The Engineer's proposals were, some years ago, closely examined by two Committees of inquiry—the first beng composed of two highly qualified drainage engineers and the second of departmental officers ; both Committees endorsed the Engineer's proposals. After mature consideration the Board decided to proceed with the scheme for that part of the metropolitan area on the isthmus. Briefly, the scheme as proposed by the engineer involves the discontinuance of the present works and outfall at Orakei; the continuation of the main intercepting sewer from Orakei to Tamaki Point; the construction of a new main drain from Henderson along the shores of the Manukau Harbour and through Mount Wellington Road District to Tamaki Point ; a branch sewer from Papatoetoe to join the main intercepting sewer which runs along the shores of the Manukau Harbour, and from the point of junction of the two main intercepting sewers at Tamaki Point a submarine sewer will be constructed to Browns Island (for the acquisition of which the necessary arrangements have been made by the Drainage Board) where treatment-works are to be established. The scheme, of course, provides for the closing-down of all present outfalls into the Waitemata and Manukau Harbours, and the concentration on Browns Island of the whole of the sewage from the metropolitan area south of the Waitemata Harbour. The local districts at present included in the Auckland and Suburban Drainage District are the City of Auckland, the Boroughs of Mount Eden, Newmarket, Mount Albert, and One Tree Hill (part only), and part of the Mount Roskill Road District. The other local districts have their own drainage, and it is generally admitted not only that the drainage facilities in these districts are inadequate in terms

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