H.—ls.

This class of inspection certainly does not pay the cost involved and the more the Department does of it, the greater will bo the ratio of loss. Fees could, of course, be increased to cover the cost, but that would merely increase the objection. It is difficult to know what is the real opinion of the great majority of those affected, because, as in all such matters, those who object do all the complaining, and those who are content take no action. There is power under the Inspection of Machinery Act by which the Governor-General in Council may exempt any class of machinery from the provisions of the Act —that is to say, none of its provisions shall apply. It was considered undesirable to use this authority for the exemption of farm machinery, because, firstly, the inspection has so long been in force by the will of Parliament, and, secondly, because it would not be right to entirely disregard the necessity for guarding such machinery so as to protect life and limb as far as that is possible. An amending Bill will therefore be introduced this session, which will exclude farm machinery not exceeding 5 horse-power from annual inspection, but will retain the powers of section 16 of the Act, imposing a legal obligation on the owner of any machinery to guard it and a penalty for not doing so. The amendment will further impose on machinery-dealers in general, agents, distributors, and erectors, a similar obligation to guard machinery before selling or when erecting it. Power will also be given to serve notice on dealer, agent distributor, or owner, that certain machinery in so insufficiently guarded or fenced as to be dangerous or likely to cause loss of life or bodily injury, and that it may not be disposed of, without committing an offence under the Act, until it is satisfactorily guarded. The net result of such an enactment will be that manufacturers, dealers, &e., will get into touch with departmental Inspectors and ascertain what is required in the way of guarding, and provide it before the machine is sold. In other words, manufacturers, vendors, agents, &c, and departmental Inspectors will co-operate in the common cause of safety, and the costs of annual inspection and fees will be eliminated. If all the machinery were manufactured in New Zealand the problem would be a comparatively simple one, because we could deal with manufacturers direct, but, unfortunately, too great a proportion comes from overseas. Examination of Land Engineers, Engine-drivers, and Electric Tram-drivers. These examinations were held at the various offices of the Inspectors of Machinery throughout the Dominion at the regular intervals provided for in the regulations—namely, in the months of May, August, November, and February. In addition, a few special examinations were granted, but the holding of special examinations is not encouraged, as it is considered that the regular examinations are of sufficient frequency, and, except in very exceptional circumstances, candidates are expected to arrange that they may attend the scheduled examinations. The full list of places where the examinations were held is shown in an appended return, as also is the number of candidates examined at each place. The classes of certificates for which examinations were held were : First-class engine-driver, second-class engine-driver, steam-winding-engine driver, electric-winding-engine driver, locomotive-engine driver, traction-engine driver, locomotive and traction engine driver, and electric-tram driver. The total number of candidates examined was 377 ; of this number 266 were successful and 111 failed in their examinations. Prosecutions. During the year legal proceedings for offences under the various statutes administered by the Department were instituted in eighty-one cases. Prosecutions under each Act were as follows : Fisheries Act, 52 ; Harbours Act, 5 ; Inspection of Machinery Act, 3 ; Shipping and Seamen Act, 21. Fisheries. The report of the Chief Inspector of Fisheries which is appended hereto deals exhaustively with sea and fresh-water fisheries. From time to time there arises discussion on the subjects of the Government leasing the oysterbeds, or, alternatively, granting leases to individuals to create oyster-farms in localities where oysters do not now exist, or where only a few are to be found. As to the question of leasing existing beds, one has only to go back to 1908 when a license system was in vogue. The operations of the licensed men and their careless methods of picking so ruined the beds that the Department was compelled to take over the picking itself, and has ever since had to most carefully regulate the picking in order to ensure the preservation of the beds. In considering this project it must be borne in mind that the reproduction of these oysters is a process of nature which can succeed only where natural conditions are favourable. The reason why certain localities, within what may be termed generally the " Rock-oyster zone," produce good stocks of oysters, while other localities, also within the zone, produce no oysters, or very few, or of poor quality, is that the natural conditions, which cannot be controlled, are favourable or less favourable in varying degree to the point of unfavourableness, where there is no production. Investigations by departmental officers have definitely shown that even in areas where general conditions are normally favourable, seasons occur from time to time when, owing generally to adverse weather conditions and sea-temperatures, the " spatting," which is the fertilized ova, is very poor, or does not occur at all in measureable terms. Thus it may, and does, happen that from time to time— and last season is an instance —there is no reproduction, or a very small one, insufficient to maintain stock. Similarly, if much disturbed weather occurs during the fattening season, the result is a poorquality oyster. It is for these reasons that the greatest discretion has to be exercised in resting backward beds and in fixing the opening and closing dates for the picking, season.

11