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E.—No. 6.

THIRD REPORT ON THE MARINE DEPARTMENT FOR YEAR 1867. 9 General Post Office, Sib, — Wellington, 13th August, 1867. I have the honor to submit, for your Excellency's information, a Eeport by the Marine Engineer on the affairs of his Department, for the year ending 30th June, 1867. I cannot do so without bearing my testimony to the zeal and ability which have been devoted by Mr. Balfour to the organization of the Marine Department. The bringing into operation of the provisions of the Marine and the Steam Navigation Acts passed during the last session of Parliament, the establishment of a proper system for the inspection of steam vessels, and for ascertaining the qualifications of Masters and Engineers, the supervision of the several Lighthouses of New Zealand, and the general conduct of the Maritime business of the Colony, have been carried out in a manner, which, considering the limited amount of Mr. Balfour's staff, reflects great credit on his Department. The alterations in " The Steam Navigation Act, 1866," referred to in this Seport, have already received the sanction of the General Assembly, and a Bill will shortly be introduced for giving effect to the amendments which have been suggested in " The Marine Act, 1866." I have, &c, To His Excellency Sir George Grey, X.C.8., John Hall, Governor of New Zealand. Postmaster-General.

Marine Department, Sib,— "Wellington, 29th July, 1867. I have the honor to forward herewith a Eeport on the working of the Marine Department for the year 1866-7. I have, &c., The Hon. the Postmaster-General, James M. Balfoub, "Wellington. Marine Engineer.

REPORT. General. By the passing of " The Marine Act, 1866," and " The Steam Navigation Act, 1866," the previously existing arrangements for the supervision of lighthouses, and the conduct of the general maritime business of the Colony, and the inspection, and supervision of steamers plying in Colonial waters, were abolished, and the Marine Department has been created in the room of the former machinery. Steam Navigation Act. The necessity for working this Act with a very limited staff, and, at the same time, carrying out its provisions efficiently, involved much anxious consideration. It was only after voluminous correspondence that the arrangements embodied in the printed hand-bill (Appendix A.), which was issued to all officers of Customs, as well as to harbour masters and other Provincial officers, were decided upon. Further experience having shown that it was desirable to have a representative of the Department at the several important shipping centres capable of acting in case of accident to any steamer, or any other emergency which might arise,—non-salaried inspectors of steamers have been appointed for Auckland, Otago, and East and West Canterbury; and as the gentlemen who fill these offices in Auckland and Otago are engineers by profession, and had been previously in the service of the Marine Board as engineer surveyors, it has been arranged to leave the quarterly surveys of high pressure steamers to them, in addition to any emergency work which might arise, with a view to increase to some extent the amount of their remuneration, —these officers being only paid at a stipulated rate for each service performed. An amended copy of the regulations for working the Steam Navigation Act, arranged to suit these modifications, is published in the Gazette of 20th April, 1867, No. 25, page 186.