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this expenditure. In so far as the present item is concerned (subsidies to Rabbit Boards, £13,000), there is only a relatively small portion of the Dominion under administration by Rabbit Boards, and we are of opinion that an unduly large proportion of the expenditure of the Department is in respect of these areas under Rabbit Board control. The subsidy paid to these Rabbit Boards, in view of present conditions, is on too lavish a scale, and we recommend that the amount be reduced by 50 per centum and that the subsidies be abolished altogether within a period of three years. As the State has rendered valuable assistance in the past to these Boards, it should not be unreasonable to expect local effort to take up the burden now. Estimated saving, £6,500. 1084. General Administrative Cost.—ln connection with the administrative expenditure of the Department on the control and destruction of rabbits, which amounts to approximately £18,000 per annum, we are of opinion that this expenditure is high and that it should be capable of considerable reduction. We suggest that by the curtailment of inspection, &c., an administrative saving of at least £5,000 per annum should be possible, and recommend accordingly. Saving, £5,000. Grants. Item —Dargaville Demonstration Farm, £300. 1085. The grant in respect of the Dargaville Demonstration Farm should now be withdrawn. The Department has spent a considerable sum of money on demonstration and experimental areas, and in view of present conditions there should be a drastic curtailment in this direction. Saving, £300. Item—Dominion Group Herd-testing Federation: Expenses and Salary of Supervisor, £945. 1086. This item is linked up with the subsidies of £7,703 paid to herd-testing (so-called cowtesting) organizations. The expenditure provided under the present item is in respect of the salary and expenses of the Federation's supervisor. In our later recommendation, under the heading of " Subsidy to Cow-testing Organizations," we have recommended a reduction to £5,000. This should include the salary and expenses of the supervisor. Saving, £945. Item —Egg-laying Competitions at Auckland and Christchurch, Contribution to Cost of, £200. 1087. We cannot regard the expenditure as being essential, and recommend the abolition of the item. Saving, £200. lt em —Lincoln College: Extra Staff for Research Work, £1,800. 1088. This expenditure should be under the control of the Scientific and Industrial Research Department, and should be provided for on the estimates of that Department. At the present time there is no unified control in connection with Massey Agricultural College and Lincoln College. We recommend a reduction in the item by £400. Saving, £400. Item —Royal Agricultural Society, £250. 1089. Having regard to present conditions, we consider that this item should be abolished. Saving, £250. Item —Winton Experimental Farm,, £300. 1090. We recommend that the grant in respect of this experimental farm be also abolished, as in our opinion it has outlived its usefulness. Saving, £300. Guarantees and Bonus on Exports. Item —Eggs, Guarantee on Export of, £850. 1091. We are informed that the guarantee in respect of the export of eggs has been withdrawn. It should not be renewed. There will be a saving of £850 for 1932-33. Saving, £850. Item, —Fruit, Guarantee on Export of, £11,000. 1092. This item is to provide for a Government guarantee on export of fruit. The position is that a return of lis. per case is guaranteed for certain classes of fruit and 7s. per case for others. The industry is now well established, the export for the current year being estimated at approximately 1,500,000 cases, and we are of opinion that the guarantee has now well served its purpose in establishing a considerable export trade. There is a further aspect of the matter to which attention might be drawn, and that is that the demand for apples and the price realized has been relatively better than for other primary export produce. It therefore appears that the industry should be in a relatively better position than other primary industries in the Dominion, which forms another good reason why the present system of guarantee should be abolished. It should be stated that'the Fruit Board is now collecting a levy of l|d. per case, expected to

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