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Areas on the hanks of the Wanganui River have been surveyed, and are now being taken for scenic purposes, and land along the Pipiriki Raetihi Road has been acquired from the Maori District Land Board, as has also a line area overlooking Oliakune. both of which reserves xvill appear in next year's schedules. A number of scenic areas in the Westland District are also being reserved, the lands being the property of the Crown, and comprising picturesque forest scenery either on the shores of lakes, the banks of rivers, or along the ranges. Many other scattered areas in various pails of the Dominion are also being dealt xx ith as opportunity offers. The claims of settlement are, however, invariably respected, and land xx-ell adapted for close settlement is rarely taken. Expenditure during Year. The expenditure during the year showed a considerable decrease on the money spent during the preceding twelve months, only L'3.7'!u being expended, as against £5,775. Of the amount expended, over £600 was for the fencing of reserves ami eradication of noxious weeds, whilst the surveys and valuations of lands accounted for over £1,500. As the area of scenic reserves increases, the annual cost of protection and administration is necessarily greater, but ihe value of the scenery safeguarded grows correspondingly, and it may be well to repeat once more that the reserves contain scenery unique in its way. and of a nature that cannot be paralleled throughout the wide world. As time goes on the reserves will be more and more appreciated, and the annual expenditure is well within reasonable limits. Office-expenses are almost nil: the Board's expenses were trifling; and the following table shows in a comprehensive form the chief items of expenditure since the passing of the Scenery I'i'eser vation Act of 1903, and the formation of the Scenery Preservation Fund of £100,000, of which nearly £63.00(1 is still unexpended.

Comparison of Expenditure.

General. The Northcote Scenic. Reserve, towards the purchase of which a small sum was contributed by the residents, has been placed under the control of the Northcote Borough Council, and in ot her eases where a local body is in a position to superintend or act as caretaker of scenic reserves, and is willing to do so. it may lie advisable to grant them the necessary authority. It. may be of interest to point out that by virtue of past legislation all seenie reserves and national parks in New Zealand are practically sanctuaries lor the Native birds and game, and no shooting in killing whatever is permitted on them. The greatest care is taken to keep them free from noxious weeds, and wherever practicable and advisable the fencing of the external boundaries has been proceeded with, particularly when the reserve adjoins settled lam! or a road in general use. The Inspector xvas partly engaged in Surveying operations during the year, but he has inspected most of the scenic reserves in the Dominion, and will now complete the remaining inspections, whilst the Crown Lands Bangers and other officers of the Department of Lauds are also available lor isolated eases or in any urgent matter. The Inspector's report will be found in Appendix 1!. and shows the scope of his duties in connection with seenie reserves. The report of the Scenery Preservation Board appears in Appendix C. and contains a list of the meetings during the twelve months. It xvill he seen that most of its meetings are held in Wellington : but where the Board deems it necessary to specially visit and inspect areas recommended for acquisition, the meeting is usually held at the land office for the district. This only took place twice during 1910-11. In conclusion. I have to state that great eeonotnv is exercised in the administration oi the Act. and. since the Department of Lands has had the control of scenery-preservation, the expenditure on office-administration and Board's meetings has been so small as not to amount to 1 percent, of total expenditure, whilst ihe annual salaries (luring the past four years only amount to I per cent. The interests of scenery-preservation have been studied closely, and it may confidently be stated that the Dominion has obtained splendid value lor the expenditure incurred.

1904-5. 1900-6. 190G-7. 1007-8. 1908-9. I £ £ £ £ £ Compensation for land ... ... 216 3,886 7,856 4,286 3,813 Expenses of Commission and Board ... 1,822 1,22] 185 86 j 24 Salaries of officers ... ... ... ... 175 325 Fencing and maintenance ... ... ... ... 304 382 1,063 Miscellaneous (surveys, valuations, &c.) i ■ 52 527 801 555 540 1909-10. i 1910-11. „ £ 1,688 1,066 11 320 325 1,159 685 2,603 1,643 Totals ... ... ; 2,090 : 5,084 ; 9,146 5,484 5,765 5,775 3,730