H.—22,

omitted. The net result of this omission would be that the Commission as proposed by the Bill would then be required to adjudicate on the scheme on the basis of the evidence submitted and its own investigations, and the objecting local authorities would not be placed in a disadvantageous position. The final clause of the Committee's recommendations is worth quoting in full: "We are of opinion that the proposals as outlined in the draft Bill before the Committee (with the amendment suggested in paragraph (g) of this report (the amendment suggested above)) should be given legislative effect so as to open the way for a solution of the admitted problem of local government, consistent with efficiency in administration and also with the principles of democracy." The Committee did not conclude its deliberations in time to enable the Bill to be considered for introduction into Parliament last session, and the matter will therefore come up for consideration in relation to the legislative programme for the 1939 session. E. Hokianga County : Financial Difficulties. Matters relating to the financial affairs of the Hokianga County came before the Department in August, 1938, as a result of a request made to the Government by the Hokianga County Council for financial assistance. Discussions subsequently took place between the representatives of the Native Department, the Treasury, and the Departments of Internal Affairs and Public and in view of the issues involved it was considered desirable that officers of the Treasury, Public Works, and Internal Affairs Departments should visit the county for the purpose of making an investigation into the underlying causes of the financial embarrassment of the Council, and possible means of alleviating the situation. The officers detailed for this purpose spent some days in the county, when the difficulties facing the Council were fully discussed with representatives of the Hokianga County Council, and inspections of various parts of the county were made. In addition, discussions took place with the local officers of Government Departments concerned. As a result of the investigations undertaken by the officers concerned the Departments are now in possession of full information in regard to the position of the county, and the full report submitted by the officers is at present under consideration by the Government. F. Thames Borough. Matters relating to the administration of Thames were again prominent in the Department's activities. During the year four quarterly reports were received from the Thames Borough Commissioner, and the necessary action taken thereon. The time was extended on two occasions preventing persons from applying for a Receiver in respect of Thames Harbour Board debentures. During the year, Mr. C. L. Grange received the appointment of Secretary of the Auckland Hospital Board, and consequently tendered his resignation as Thames Borough Commissioner as from 31st August, 1938. Mr. Grange had been appointed as the first Commissioner in terms of the Thames Borough Commissioner Act, 1932, on the 24th August, 1932. During his six years of office he had maintained a very close contact with the Department. He took over the administration of Thames at a critical stage in its history, and his close application to duty, combined with the skill and tact which he exercised throughout the whole of his term of office, were such that his contribution towards the ultimate rehabilitation of Thames was a real one. On an occasion such as this it is not necessary to set out facts and figures in detail. It is sufficient to say that a reference to them in the reports issued from time to time concerning Thames will show the substantial progress made during Mr. Grange's term of'office, to which his wise administration was an important contributory factor. Mr. A. L. Burk, formerly Town Clerk of Green Island, was appointed Thames Borough Commissioner in place of Mr. Grange. Mr. Burk took over his duties on the Ist September, 1938. The existing arrangements respecting the payment of reduced interest and sinking fund on the Thames Borough loans and the Thames Harbour loans expire at stated periods during the year ending on the 31st March, 1940. The question of making future arrangements in regard to these loans thus arose for consideration, and certain proposals have been submitted in connection therewith. Debentureholders are vitally concerned in any fresh arrangements that may be made, particularly as any such fresh arrangements will probably be of a permanent nature. It is therefore desirable that the debentureholders should be fully acquainted with the position and that any proposals which are being submitted should be discussed with them. Mr. Burk has devoted his energies largely to discussions with debenture-holders of all interests, and from tentative reports which he has submitted it is pleasing to be able to record that he is making substantial progress in this direction. Any conclusions which arise from these discussions will be a material factor when it comes to the time for making final arrangements with respect to the debt of and other matters relating to Thames. Mr. Burk is maintaining the same close contact with the Department in all matters pertaining to Thames as did his predecessor. G. Matakaoa County. The usual close contact was maintained with the Matakaoa County Commissioner throughout the year. Two reports were received from him concerning the administration of the county, and necessary action taken on those reports. The limits of the powers of the Commissioner to borrow by way of overdraft were fixed. As usual, among other things, the Commissioner paid considerable attention to the question of further reduction of the outstanding liabilities of the county, and he made satisfactory progress in this respect.

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