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The Commissioner again pursued a vigorous policy of rate collections in the face of the adverse conditions existing in the county —namely, the straitened financial circumstances of a large number of the ratepayers, a severe Native rating problem, isolation from markets, and others. The total collections represented 75 per cent, of the current rates and a substantial amount of arrears. This, considering the adverse conditions existing in the county, can be regarded as very good. The collection of arrears was assisted to a substantial degree by the disposal of mortgagor relief applications, and by certain Native lands coming under Native development schemes. These two sources of collection are now no longer available to any similar degree and, accordingly, the collection of any further substantial amounts of arrears of rates is now very remote. Furthermore, the recession in prices for primary products is severely affecting the farming community comprising the Matakaoa ratepayers, as most of them have no reserves to fall back on. The position is being closely watched with a view to minimizing, as far as possible, the effect of this recession on the progress of works in the county. Further extensive flood damage occurred during the earlier portion of the year causing an additional drain 011 the county's resources, but the dry summer has enabled ordinary maintenance and new works to be carried out without interruption. Making the most use of the limited resources at his disposal and the assistance given to the county by governmental and other organizations, the Commissioner secured the maximum improvement possible to the roads and other facilities in the county. The assistance rendered in this respect by the Public Works Department was most helpful, as also was that of the Employment Division of the Department of Labour. The Commissioner has maintained a policy of holding regular meetings with the Matakaoa County Council and with groups of settlers in the various ridings. This has enabled him to keep them acquainted with the affairs of the county and to obtain their advice on various matters. The results have been beneficial in the administration of the county. H. Auckland Metropolitan Drainage. In the last annual report full details were given of the proposed Auckland metropolitan drainage scheme. During the 1938 session of Parliament the Auckland and Suburban Drainage Board introduced a Bill, largely 011 the lines recommended by the Commission which investigated the problem in 1937. The Bill was referred to the Local Bills Committee, which heard considerable evidence from interested parties. Before the Committee had reported on the Bill the Auckland and Suburban Drainage Board asked leave to withdraw the Bill for further consideration of some of the disputed points. The Bill was therefore allowed to lapse. No information is at present available as to the future intentions of the Board in this connection. IV. TOWN - PLANNING. A. Development in New Zealand. It is very gratifying to be able to report a quickening of interest throughout the Dominion in the problem of town-planning. Not only has there been evidence of a greater public interest in this field of activity, but also among local bodies there has been a realization in a greater degree of the necessity for the power to exercise control over physical developments which town-planning schemes enable them to exercise. Although the number of schemes finally approved, and therefore in full operation, is at yet small, in most of the cities and larger towns and many of the smaller towns work is steadily proceeding with the preparation of town-planning schemes. During the year the Dannevirke Town-planning Scheme No. 1 and the Napier (Marewa) Town-planning Scheme No. 1 were finally approved by the Board, while the New Lynn Town-planning Scheme No. 1 was provisionally approved. Although the Town-planning Board held only two meetings during the year, committees of the Board were active ; in particular committees of the Board heard objections and made recommendations in connection with the Dannevirke and Napier (Marewa) Town-planning Schemes. Perhaps the most important development during the year was the decision 011 the part of several County Councils to control the urban development in areas under their control. With the more adequate transport facilities which are available at the present day, many areas which are outside the districts controlled by urban local authorities are becoming quite important as residential districts, and many County Councils, recognizing their responsibilities in this matter of residential development, have decided that control can best be exercised through the preparation of extra-urban planning schemes. The Ashburton County Council decided to prepare extra-urban planning schemes for the Allenton, Methven, and Rakaia Townships respectively. The Hutt County Council likewise decided to prepare extra-urban planning schemes (a) for the Taupo Riding, in order to control the development of the Township of Plimmerton and surrounding areas ; (6) for the Whareroa Riding, which includes the townships of Paekakariki, Raumati, and Paraparaumu, and Paraparaumu beaches ; and (c) for that part of the Wainui-o-Mata Riding between the Borough of Eastbourne and the Borough of Lower Hutt, so as to control the development taking place in Lowry Bay, York Bay, and along the seafront generally. The Mackenzie County Council has shown commendable foresight in deciding to have an extra-urban planning scheme prepared for the Lake Tekapo Township, one of the best areas in the Dominion from a health and climatic point of view, and a local committee is doing some admirable work to this end. The Whakatane County Council also is preparing schemes for three areas within

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